The sun does not shine on the same dog’s back every day.
This folksy reminder should be a point of focus in private club boardrooms because most clubs have full memberships with wait lists, giving club leaders the sense that happy days are here to stay. It was not that long ago that the majority of private clubs were scrambling to find new members while some of that majority—roughly one in five—faced economic failure.
During these good times, what should you be doing now to prepare for an economic downturn or a slowdown in membership demand?
Become the Employer of Choice
Private clubs throughout North America have steadily rebuilt their staffing levels to “full.” At the worst of the pandemic, many clubs were operating with less than 75 percent of their workforce while laboring to recruit more team members. While this objective is not an easy one, personal and personalized services, which are the backbones of the private club value proposition, require reliable and well-trained staff.
Many club leaders have been of the mind that their club simply needed to “throw money at prospective employers,” and they have been surprised to learn that those attracted to private club services seek fulfillment that comes from several important benefits:
• Being a part of a good team. Those who would be in personal services at private clubs want what club members want…belonging. The best employees know that they are capable, well-trained, and of valuable service. They want to belong to a team where their attributes have value and recognition.
• Being recognized as a reliable teammate. Recognition is important to everyone and, especially, to those who are team players.
• Being proud of their employer. Staff members know the best clubs – and employers – in town and want to join the winners. Club leaders must be alert to doing the right things right in the eyes of their staff.
Focus on Capital Reserves & Capital Planning
Many clubs aggressively spend new-found capital—from government programs and new members joining the club—on long-deferred capital maintenance projects and improvements. In many clubs, generations of club leaders dismissed the notion of making capital investments when they did not see ready access to capital through debt or capital calls on members.
Club boards should focus now on the capital maintenance projects that will update, repair, or replace existing assets on their clubs’ balance sheets. Capital reserves should begin to be built for the next round of capital needs.
Extend Your Club’s Brand Reach
In good times, club leaders think their clubs are great. In bad times, such as before the pandemic, many club leaders were afraid of their clubs’ brand because either they did not know what to do with it or because the brand pillars had been ignored for decades. There are three easy steps to improve your club’s brand reach are:
1. Improve board communications with members. Members expect the club and its board to be transparent. Improving board communications can be as simple as the board committing to a regular schedule of updates on topics of interest to members or as advanced as adopting a style guide that brings forward an editorial agenda that tells what topics the board will be communicating and when.
2. Embrace rising generations of members. Clubs are regenerating as the most tenured members age out of active use of the club while newer and younger members are settling in. The oldest members want to be remembered, respected and included. Newer members want advanced capabilities, apps, and immediate access. Check your club’s bandwidth to ensure that the club’s capabilities are up to current standards for access and content.
3. Act on the club’s core values. Ensure that your communications content is timely, inclusive, and easy to understand. If, for example, your club claims to be a “family club,” ensure that programs and programming include everyone in the family and go beyond the easiest choices.
It is called a “business cycle” because events change with high predictability. It is advisable to plan now for economic changes, slow-down, or global events.
GGA Partners Renews Commitment to National Club Association and Private Club Community
