Author: Amna Sharfuddin

From Private Club Leader to Private Club Advisor

Date:

Connecting my technical background to leadership development

Growing as a professional has meant different things to me at various times in my career. After business school, my focus for growth centered around academic achievement and professional accreditation – becoming certified as a CPA, CA, and then a CCM. As my career developed, I have transitioned to focusing on the development of my team even more than myself. My focus has shifted from technical expertise to leadership, which is a change that I quite enjoy and am proud of. Prior to joining GGA Partners in 2022, my career had two distinct chapters – first, my professional practice as a public accountant and then my work running a premier private golf and country club. My career path accurately represents who I am, a self-proclaimed adrenaline enthusiast with a strong penchant for accounting!

Navigating through a pandemic

Navigating the COVID-19 pandemic has been a challenge, to say the least, but it has not been without it’s benefits. In the first year of the pandemic, I was operating a golf and country club. I felt a tremendous sense of responsibility to members and staff to deliver an exceptional experience in a safe way, even more so because it was our last year of operations following the sale of the club’s land and buildings. The highlight for me that year came from watching my team rise to the many challenges. I am tremendously proud of what we accomplished under truly extraordinary circumstances. As hard as it has been, I am optimistic that some of the changes forced upon us due to COVID-19 may be for the better – whether that’s the flexibility that comes from a hybrid work environment, the rapid acceptance of various new technologies, or the understanding that it’s better to stay home when you are feeling sick. With a young family at home, I am grateful to have had more time to spend together, even under very unusual circumstances.

Using my financial expertise to drive growth for private clubs

“My role as a Director at GGA Partners bring me immense joy, one of my core values. The opportunity to apply almost 20 years of professional accreditation and leadership experience in an industry that focuses on one of my own core values is a huge benefit, and I am thrilled to be able to share it with clients.”

GGA is the perfect fit for my skills and interests, and I get immense satisfaction out of advising private clubs, drawing on my background as a private club manager and from my technical expertise.

I am able to learn something new from each engagement, whether from the client, our team, or both, which keeps the work exciting and fresh. I can participate in a wide variety of engagements, from governance and strategic planning to operations and financial management, so there is never a dull moment.

Currently, I am conducting financial modelling for a prominent private golf club, a valuation exercise for a well-known golfing brand, and providing professional training through the Club Management Association of Canada.

More about me

I am a mom to three young, busy kids who keep me on my toes. Our family values time together through shared experiences, usually self-propelled and outside, like cycling, skiing, golf, team sports and hiking.

Liz McDowell is a Director at GGA Partners. You can reach her at liz.mcdowell@ggapartners.com.

Opportunities to Reinvent Club Service Standards

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The club industry is facing one of the most challenging labour markets in years. In addition to labour issues, most clubs have had to adjust their service levels to protect the health of their employees, members, and guests, as well as adhere to constantly changing public health guidelines within their regions. Added to this is the reduction in revenue associated with a decline in event business. The net result presents a challenging environment for clubs, but with challenge also comes opportunity. Clubs are provided with the opportunity to refine their service standards to meet the expectations of todays’ world and avoid allocating resources based on standards that are no longer relevant.

Changing Service Expectations

Over the last two years, service expectations have shifted. Some clubs have taken advantage of this transitionary period to redefine their future service models , with the goal of increasing operational efficiency while delivering a level of service expected by their members and guests. Utilizing member/guest focus groups and listening sessions, as well as well-constructed surveys, clubs have learned that service expectations have changed over the past two years. Some services that were once considered standard are no longer priorities for members. Valet parking, staffing a bag drop and driving range attendants are just a few examples of services that some clubs are moving away from. These clubs have also learned that the use of technology is far more accepted than it was two years ago and represents an opportunity to reduce labour costs. Moving all tee time booking online or to the club app rather than having a staff member answer phone calls is a common example.

Defining Service Standards

“Service Standards are clearly defined descriptions of the service experience that customers can expect to receive consistently with every interaction they have with your club”

On the surface, the above description is straight forward, but when it is applied to defining these standards, it can become a bit challenging. In particular, the four words, “…consistently with every interaction…” is what sets well-defined service standards apart from aspirational service delivery. For something to become a standard, it must be something that your team has the talent, training, and resources necessary to achieve the standard every time. If one of those factors is missing, it cannot be a standard. For example, it might be a service goal to answer the phone within two rings with a live individual. If you do not have the resources to achieve this every time, even during busy periods, it cannot be viewed as a service standard.

Written from the Customers Perspective

Our organization has assisted both small teams and large organizations in the hospitality industry to develop service standards. One common theme that we encounter with service organizations is a lack of clarity between operating standards and service standards. To put it simply, service standards is the service that a customer can expect to receive every time they have an encounter with your business. Operating standards are the internal processes that are in place to ensure that your organization achieves the service standards. For example, a service standard in a restaurant might be that all customers will be greeted at the host desk immediately upon entering the restaurant. The operating standard that would support this might be that during restaurant hours, the host desk will always be staffed. The difference is minor but important.

Train and Support

Once you have clearly defined your service standards across every touch point with customers, the challenge becomes ensuring that your team is consistently delivering. This requires that all employees clearly understand what is expected of them and that they have the necessary training and resources. Employees also require ongoing support and coaching from their supervisors.

Measure, Coach and Reward

The final step in a successful service standards program is measuring success. A consistent measurement process involves the creation of a scorecard and utilizing mystery shoppers who can objectively measure your team’s delivery of service standards. The scorecards help to identify areas where standards are not being met, and help management understand where additional training and resources might be needed. Scorecards also provide a benchmark score that provides a snapshot of how you are doing overall and a measurement that can be considered in your senior team’s annual goals and objectives.

Clearly defined and measured service standards have become a standard in the hospitality and club industry. If your club does not yet have a service standards program in place, we encourage you to develop one. If you already have a service standards program in place, it may be time to review it and determine if it is right for today’s service environment and evolving customer expectations.

Contact a GGA Partners professional today for more information.

Building the Membership Models of the Future

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Pandemic-driven changes to member usage has thrown off the balance of membership numbers and access privileges at private clubs around the world. What trends are being observed, and more importantly, what does the new normal look like for re-balancing membership capacities and usage patterns?

The impact that the pandemic era has had on private club member usage has not been subtle. Usage rates across private clubs for golf and racquet sports observed double digit usage growth. Among GGA clients, a 25-30% increase in total rounds played from 2019 to 2020 was not uncommon. On a per member basis, the average private club member increased their annual number of rounds played by 5-9 rounds. And while we predict there will likely be a slow regression in the years to come as other leisure alternatives become available, we still expect that the new ‘norm’ for private club member usage levels will be elevated from pre-pandemic experiences.

Why is that?

The flexible work-from-home trend brought on by public health measures brings with it two key benefits. Firstly, the saved time from commuting can now be dedicated to leisure pursuits and more time spent at the Club. The second is the flexibility of leisure usage. Traditional tee-sheet compaction on weekends is partly a function of this being the only time that many members can play, for those with rigid weekly work schedules and/or long commutes from the office. Flexible work hours offer members the option to use the Club at unconventional times, especially on weekday afternoons/evenings. If we think of the end result in terms of ‘occupancy rates’ for amenities at the Club, we expect higher levels as a function of more balanced demand.

As you plan for the upcoming season and work to identify the optimal structure for balancing members and access, consider the following practices that we have observed to be successful for managing a changing membership model:

Ensure member capacities are based on current usage patterns – This may seem obvious at first glance, but we continue to observe clubs focusing on their existing by-law capacity for members, a capacity that may have been calculated decades ago. Usage patterns may not always change as drastically as they have in the past two years, but there will never be a time where they are not evolving in one way or another. Member capacities should be calculated based on an ongoing monitoring of utilization levels, even if that means adjusting internal capacities annually.

Waitlists with Flexible Usage – As more and more clubs approach waitlists as a result of the demand increase over the past two seasons, consider a ‘soft’ waitlist category that still provides limited usage of the Club, at the discretion of the Board of Directors. This typically involves a deposit that can be applied to the entrance fee, and dues/access that likely resembles a sports/social category. The goal would be to steer all access towards non-peak times while still allowing new members to experience the Club and keep them ‘hooked’ until room opens up for a full membership.

Avoid the temptation to restrict the young member pipeline – Five years ago, many clubs were clamoring for members under the age of 40 and rolling out incentive programs to capture the new millennial generation of private club members. Naturally, when a club approaches capacity, it makes sense, in the short-term view, to cap the number of young members joining the club because they often receive discounted dues and/or joining fees. However, it is important to remember that the demand surge from this audience is likely to dry up again in the future, and the long-term value of a strong pipeline of millennial members (with the potential to pay dues at the Club for the next 40+ years) should be a higher strategic priority than the small incremental gain in dues revenue in the short-term. Due to the flexible nature of working from home, under 40’s have been playing considerably more golf, on average, and as a result, there may be an opportunity to reduce the intermediate discount (rather than turn them away) to match usage and their improved perception of value received.

Looking ahead, clubs must get comfortable with ‘change’, and the ability to monitor and react on a continuous basis. Do not assume that members will revert to the same patterns and preferences as they exhibited pre-Covid. Those who can react and adapt to the ever-evolving member trends will be positioned for success

How our Membership Strategy and Planning professionals can help

GGA Partners specializes in developing the most appropriate membership, lifestyle and amenity solutions that will position a club or project for long-term success in the context of its financial circumstances and competitive landscape. We invest heavily in tracking and understanding global trends and best practices specific to club membership.

Contact a GGA Partners professional today for more information.

 

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