Constantly Thinking About Budgets

With most 2021 budgets prepared and submitted, many golf course superintendents and their managers are reviewing and updating agronomic plans for the coming year. A sound agronomic plan is a living document that must anticipate upcoming conditions and respond to emerging circumstances. In volatile times, certain constants must be considered. Let’s evaluate some of those constants in the context of today’s conditions and challenges and see how they might affect budgets.

Constants

Certain irrevocable factors influence the proper care and upkeep of golf facilities with budgets leading the list. Your budget is the mathematical “North Star” on which you steer your performance. It’s also a measure of your intentions. One superintendent summarized his budget by saying, “You can run but cannot hide from your budget, so you might as well pick it up and run with it.” In other words, dig into the process and learn to deal with the variables.

For 2021, here are several budget guidelines to understand:

  • Most planners expect a choppy year ahead. Set aside funds for the unexpected events that will emerge and keep your powder dry.
  • Plan for three categories of expense. Fixed expenses for such budget overhead requirements as utilities and equipment leases are unlikely to change, although careful budget managers ask for relief on such fixed costs through abatements or forgiveness that may help to stretch budgeted resources. Second, labor costs will ebb and flow as impacts from COVID-19 and closures of club facilities will place irregular demands on labor dollars. Give yourself some room to maneuver. Third, discretionary needs will emerge as fellow managers and golfers seek new solutions to new problems. So be prepared.
  • New ideas and methods introduce new solutions for labor and overhead costs. Be alert and watch for new and innovative possibilities that make your work eventful and add purpose to your accomplishments.
  • Changing weather patterns demand that golf course operators become better informed and more proactive in planning care and upkeep practices. While much of your work is influenced by changing weather conditions, superintendents know to rely on the National Oceanic and Atmospheric Administration for accurate weather pattern forecasts that help them more accurately plan and schedule their maintenance practices.
  • Golfers’ expectations continue to escalate. You can count on golfers wanting “more and better,” which means course managers are always searching for process and results improvements. For 2021, golfers’ expectations include enhanced sanitation and clearing of on-course comfort stations, golf carts and practice range equipment. Next year will demand sustainable care and upkeep standards despite irregular resources that may be interrupted by supply chain and budgetary limitations.

Upcoming Conditions

Course managers must anticipate changes being introduced for labor management and workers’ expectations. Such changes as reducing the number of workers exposed to one another is requiring managers to divide crews and adjust shifts. Your team’s protection is vital.

Changing climatic circumstances requires enhanced emergency preparations. Consider your clean-air, fire and immediate-notice evacuation plans for workers and affiliated departments. Your liability insurance carriers are a good starting point for collecting guidance, as are emergency preparedness agencies in your vicinity.

Emerging Circumstances

Develop your short list of resources on which you will draw for new threats and opportunities. The Centers for Disease Control and Prevention and the National Institutes of Health are examples of resources on which you can rely. The coming year will reveal new problems, challenges and circumstances with which golf course managers must reckon.

Emergency services professionals, such as your local health care, water supply and cyber-security experts, are valuable resources on which you can call. Beyond your club’s insurer, call on fire and police experts to provide guidance in planning ahead.

This article was authored by Henry DeLozier for Golf Course Industry magazine

New Partnership Promises to Deliver Vibrant Future for England Club Managers

CMAE England Engages GGA Partners to Develop Strategic Plan

WARWICKSHIRE, England (October 27, 2020) – CMAE England has announced the engagement of GGA Partners™, the international consulting firm working with many of the world’s most successful private clubs, resorts, golf courses and residential communities, to facilitate the development of a five-year strategic plan for the association.

Established in 1992 as North America’s KPMG Golf Industry Practice, the independent firm has provided industry-leading advisory services to more than 3,000 clients worldwide. GGA has been recognised as “Strategic Planning Firm of the Year” by Boardroom Magazine and brings an unmatched financial, marketing, and operational focus to each of its strategic assignments. This extensive expertise was critical for CMAE England in their choice of strategic planning partner.

“CMAE England is founded on a dedication to club management excellence, education, knowledge-sharing, supporting career progression and on our powerful network of club professionals,” explained Chairman of CMAE England, Tristan Hall. “The board believes it is time to reaffirm these values, and the strategy employed, to deliver a vibrant and sustainable future for the Association.”

“In securing the services of GGA Partners, we have retained the very best strategic advisory team in the industry to guide and inform this critical process,” said Hall.

Distinguished in its ability to build enduring value, GGA’s work will continue beyond the development of the strategic plan to ensure its strategy drives significant improvement. As a result, CMAE is pleased to announce that GGA Partners™ has made a multi-year commitment to support the association as a Corporate Partner.

Rob Hill, Managing Partner of GGA’s EMEA Office, said, “GGA and CMAE are passionate about the value of informed decision-making and strategic planning. We appreciate the privilege of being asked to serve CMAE England in shaping its future and to demonstrate our support for the professional development of club leaders throughout England”.

GGA Partners™ has offices in Toronto, Canada; Phoenix, USA, and Dublin, Ireland. For further information about GGA Partners™ visit: ggapartners.com.

 

About CMAE England Region

The Club Management Association of Europe (CMAE) England Region is a non-profit making professional association with members involved in the management of sports clubs (golf, tennis, sailing, rowing, rugby, football, cricket), health & fitness clubs, leisure, city and dining clubs located throughout England. The CMAE provides a forum for the encouragement, development and recognition of education and professionalism in Club Management. For more information, please visit cmae-england.uk.

About GGA Partners™

GGA Partners is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities. We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, please visit ggapartners.com.

 

Media Contacts:

Bennett DeLozier
GGA Partners
+353 44 33 603
bennett.delozier@ggapartners.com

Debbie Goddard
CMAE England Region
+44 (0)24 7669 2359
info@cmae-england.uk

Playing the Long Game

How do you plan for the future when the ground is shifting beneath your feet? When every day seems to bring a new forecast about the health of our fellow citizens, our economy and our environment?

The answer is simple for some. They’ll simply turn away from long-term opportunities and challenges while taking refuge in what seems slightly less murky: tomorrow, next week or next month.

That approach may feel safe, but it’s not what your board or your ownership expect. They hired you to be the long-term caretaker of their clubs and facilities and the guardian of their relationships with loyal members and customers. They expect someone in your position to have a plan, not only for getting through our current mess, but also for positioning the business for success well into the future.

So, what are those kinds of leaders doing to prepare? Our observations suggest five things at the top of their lists.

1. They’re looking ahead … way ahead.

Some economists predict that the U.S. economy will not return to pre-pandemic levels until 2023. That means visionary facility managers and club leaders of every description should be looking not only around the corner, but also over the horizon to get ready for a post-pandemic world. Those leaders see things differently.

  • They see opportunity rising out of increasing golfer participation, as families and friends view golf courses as a primary platform for socialization and outdoor exercise.
  • They see increasing outdoor dining options, where picnicking, farm baskets and patio-dining alternatives are meeting the need for socially distanced outings.
  • With high unemployment levels, they see opportunities to upgrade their staff’s performance and service levels.

2. They’re taking care of their people.

In several recent national polls, including Gallup and Harris, a strong majority of employees say they feel their employer is looking out for their best interests. (Similarly, a survey of private club members in the U.S. and Canada conducted by our firm found that members feel highly positive about the performance of their clubs throughout the coronavirus crisis.)

It’s easy to show your team members that you care for their well-being and that you respect their dedication during difficult times. You can write a personal note of thanks and invite them into your office for a conversation and remind them of their importance. You can encourage them to bring their family to the course as part of “family day.”

Your best people are your most important asset. You’ll need them prepared and energized to lead your business into the future.

3. They’re aware of shifting market conditions.

External influences are changing our views on leisure activities and disposable income. It’s critical that club leaders understand the unbiased and unvarnished trends influencing golf.

In the GGA Partners’ survey, roughly four in five members reported either an increase in importance or no change in the club’s importance in their lives. However, survey respondents were not optimistic about their club’s financial position. Seventy-one percent expect a decline in the financial health of their club. Fifty percent cited current economic conditions and 42% said a decline in member spending would lead to the decline, which 20% predicted would be “significant.”

A surge in golfer participation that many courses have enjoyed in the past several months should not be construed as a guarantee of future success. When there are few other distractions, golf is proving a popular, socially distanced alternative entertainment. But leaders planning for the long term are taking nothing for granted and shoring up service levels to make sure they continue to deliver unquestioned value.

4. They’re realistic and preemptive.

Hopefully, an approved coronavirus vaccine will be rolled out soon. If an approved vaccine is delayed, however, progressive leaders have contingency plans. For golf superintendents, club managers and other leaders, realistic planning requires careful review of revenue capabilities and overhead arising from on-going operational costs.

Here are some steps to take in preparing for 2021:

  • Review your staffing model and search for efficiencies. Now may be time to update and refine your organization of management, taking into account changing attitudes about work/life balance.
  • Re-think your plan of work model. Perhaps mowing in the afternoons opens up desirable morning tee times and makes your work on less crowded fairways more efficient. Likewise, evaluate work such as tree trimming and bulk clean-up and consider outsourcing or moving such projects to the off-season.
  • Monitor inventory levels. There is no need for a full fuel storage tank during the off-season, for example. Procure what you will use more efficiently.

5. They’re planning on success.

Imagine your facility on its best day ever. You and your team make those days happen when you dream big and work toward a future that delivers the best of your talents and imagination. Don’t be shy. You can be realistic while also making sure your plans include a few “shoot the moon” and BHAG (big, hairy, audacious goals) aspirations.

Dramatic and unpredictable times like those we’re living in create multiple challenges that can seem daunting. But they also bring out the best in those who plan for success.

This article was authored by Henry DeLozier for Golf Course Industry magazine.  Henry returned GCI’s Beyond the Page podcast to discuss long-range planning in a conversation with Golf Course Industry managing editor Matt LaWell. Listen to the playback below and visit the GCI website to subscribe to the Beyond the Page podcast.

 

(16-minute listen, 02:30-18:50)

Leveraging Differences in the Boardroom

GGA Partners Releases New Whitepaper on Private Club Governance as Part of Thought Leadership Series

‘Leveraging Differences in the Boardroom’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Leveraging Differences in the Boardroom, the third in its new series of thought leadership whitepapers. This authoritative guide explores the benefits of clubs with diverse boards and suggests several steps to take when recruiting with diversity in mind.

Leveraging Differences in the Boardroom evaluates the consequences of unintentionally insular board composition and challenges the idea of “sameness” in the boardroom, which limits the ability of a board to effectively perform its duties and threatens a club’s health and longevity. The paper illustrates how multiple perspectives contribute to greater success in governance and argues for adjusting the profile of a club’s leadership to better serve members and prospects.

“We often see board members with similar professional, cultural, and ideological backgrounds and perspectives,” explained GGA Partner Henry DeLozier, one of several authors of the piece. “Boards that are neither representative of the membership nor reflective of their surrounding community risk losing the opportunity both to serve their current members and to attract new members.”

In addition, the whitepaper encourages that clubs intent on increasing diversity among their board take a holistic, multi-dimensional approach to its creation. “Forward-thinking boards understand that it is the breadth of perspective, not the mere inclusion of various diverse traits, that benefits the organization,” said DeLozier. “In addition to social diversity, professional and experiential diversity are also important in increasing the range of perspectives represented on the board.”

Board diversification is likely to be met with resistance from the status quo, which the paper aims to help club leaders overcome by providing tactics for building a diverse board, developing new board member criteria, and making a commitment to diversity.

In addition to governance, GGA Partners recently published new whitepapers on strategic planning and branding. The firm has announced that another in the series focused on innovation will be published through the third quarter of 2020.

Click here to download the whitepaper

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities. We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, please visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

Four HR Questions Club Boards Should Be Asking

When was the last time your club audited its human resources? Alignment between a club’s strategy and its employee offering is essential in order to enhance the overall club lifestyle, culture, and experience for members and staff.

To determine whether it’s time to reexamine culture, Partner Derek Johnston lays out 4 questions private club boards should be asking. 


Among the most reverberant takeaways from the coronavirus pandemic is the importance of people to businesses. Global business leaders and executives at leading corporations have indicated that the shift toward talent as the most important source of corporate value has continued. The pandemic also seems to be leading an increasing number of talent-forward companies to take an “employees first” approach.

But this is nothing new for large-scale global businesses. Indeed, the third week of August marked the one-year anniversary of the influential Business Roundtable’s statement on corporate purpose – which puts employees, customers, their communities, and the environment on a par with shareholders.

“Human resources” is trending

It’s also nothing new for club businesses. Our continuous research on club industry trends has shown human resource management and labor challenges to be a persisting trend, one which club managers have reported to be rising in importance – before the coronavirus.

In 2019, human resources was ranked the 6th most-impactful private club trend (out of 27) in a global survey of club managers. And, in a separate Canadian club industry survey, it was identified as both a key risk and primary hurdle to modernizing club management while topping the list of areas which managers say are under-supported from an education standpoint.

The early-pandemic question as to whether COVID-19 impacts would accelerate the business community’s move to stakeholder capitalism, or slow it down as companies focus on short-term financial pressures, seems to have answered itself.

For clubs, the people-related challenges previously reported by managers have exacerbated, with topics like employee willingness to work, labor anxiety, staff recruitment and turnover emerging as key strategic questions which club leaders are currently wrestling.

Widespread COVID-19 impacts like club closures, layoffs, and furloughs certainly haven’t helped ease concerns. With significant changes afoot in staffing, retention, human resource availability, and operational adaptations, clubs are presented with a unique opportunity right now – the chance to reevaluate and perhaps reset their culture.

Got culture?

In clubs, culture IS governance. Sound governance is a strategic imperative primarily because it enables, supports, and nurtures effective strategy. And, as the Peter Drucker saying goes, “Culture eats strategy for breakfast.”

This is extremely important for club leaders.

It’s important because it means that no matter how strong a club’s strategic plan is, its efficacy will be held back by team members, staff, and employees if they don’t share the proper culture.

When the breaks are going against the business, as they are for some right now, the people implementing the club’s plan are the ones that make all the difference. While strategy defines direction and focus, culture is the habitat in which strategy lives or dies.

Now is the perfect time to reexamine your club’s culture to ensure staff square rightly with the club’s strategy. In other words, to ensure that your people are the best fit for accomplishing the club’s goals and objectives. Someone who was right for a specific role pre-pandemic may not be right for the same role now. Your business has changed, and some people may need to change too, either themselves or their roles.

How can club leaders reexamine culture?

The first place to start is by understanding what you’re currently doing for employees. Club leaders require a comprehensive understanding of the club’s current approach to human resource management so that they can determine the alignment of people and culture with the club’s goals.

When was the last time the club audited its human resources approach, policies, procedures, and performance? Ensuring alignment between the club’s strategy and its employee offering is essential in order to enhance the overall club lifestyle, culture, and experience for members and staff.

To help you get started, here are four HR questions private club boards should be asking:

1. How does our current organizational structure sit relative to best practice and what recent COVID-related changes should we make permanent or revisit?

Review your club’s current organizational structure, including both employees and contract workers, against best practice structures at comparable clubs locally, nationally, and globally. This review should focus special attention on the roles and responsibilities of human resources within the organizational structure with the goal of highlighting key gaps or divergences from best practice. Often times in clubs, an overly flat organizational structure tends to create ‘siloes’ that breed inefficiencies and bloat staffing levels.

2. Are we both efficient and competitive in the compensation and benefits afforded to employees?

Complete a comprehensive benchmarking exercise which compares compensation and benefit levels of all key staff and for the club as a whole to comparable clubs and other businesses with whom you compete for talent. The focus of this exercise should go beyond salary and hourly wages, factoring in relevant club financial and operating data, benefits packages, member and employee feedback scores, and other market-related information.

The goal is to identify current and accurate reference points for evaluating current compensation and benefits against best practice. There is a high degree of likelihood that there are opportunities in your current compensation and benefits structure to better align incentives and shift compensation to top talent, which tends to support increased productivity and reduced head count.

3. Are our personnel positioned to help us achieve the club’s goals and objectives? Are we helping them achieve theirs?

Assess your club’s performance tracking and review processes. The goal here is to analyze current performance evaluation processes and procedures to ensure alignment with the club’s overarching goals. This requires the board and executive committee to have a focused, clear, and comprehensive understanding of the club’s mission, vision, core values, and objectives.

For maximum benefit, to both member and employee satisfaction, it is incredibly important that performance is measurable and incentivized. The trick is determining the right way to track and measure performance and tie it to the right incentive.

4. Are our staff equipped with the tools they need to succeed? Are they empowered to do so?

Evaluate your club’s current recruiting, onboarding, training, and ongoing relational efforts. This will likely require management meetings and staff interviews to learn about the current approach and unearth any ideas or recommendations your team may have to suggest.


The success of every private club is dependent on the quality of their staff. Recruiting the best talent, integrating them into the envisioned culture, training them for success, ensuring their satisfaction, and ultimately retaining them is an important goal. The outcome from which tends to have a positive financial impact on the club and on the member experience.

After all, an investment in people is an investment in culture and clubs will benefit from this investment.

Speaking the New Language of Brands

GGA Partners Releases New Whitepaper on Private Club Branding as Part of Thought Leadership Series

‘Speaking the New Language of Brands’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Speaking the New Language of Brands, the second in its new series of thought leadership whitepapers.  This authoritative guide redefines a traditional brand value equation and illustrates how adding emotion and experience to a private club’s brand story will increase its value with members.

Speaking the New Language of Brands highlights ways iconic “mega-brands” mold, define, and advance their organizational identity toward the goal of influencing consumer purchasing decisions.  The paper evaluates a traditional outlook on the brand value equation and asserts a redefinition which paves the way to enhanced value perceptions among private club members.

“Traditionally, the key to building value in the eyes of the consumer has been demonstrated in a simple equation, where perceived value is equal to performance divided by price,” explained Henry DeLozier, one of several authors of the piece. “We believe there is a far more effective – and cost efficient – way to increase the value members place in your club and in your brand. It’s by introducing emotion and experience into the equation.”

In addition, the whitepaper argues that a successful branding program is based on the idea of “singularity” and should be designed with differentiation as the primary goal.  “Harkening to the days of the Old West, a branding program should differentiate your cow from all of the other cattle on the range,” said DeLozier.  In other words, creating in the mind of a member or prospective member the belief that there is no other club on the market quite like your club.

Building a brand is easier said than done.  For club managers not familiar with the brand development process, the whitepaper explains six essential steps for clubs to follow when constructing their brand and draws on examples from inside and outside the private club business.

In addition to branding, GGA Partners recently published a new strategic planning whitepaper and has confirmed that others in the series focused on governance and innovation will be published through the third quarter of 2020.

Click here to download the whitepaper

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, please visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

The New Urgency of Strategic Planning

GGA Partners Continues Thought Leadership Series with Four New Whitepapers

‘The New Urgency of Strategic Planning’ Now Available for Download

TORONTO (June 10, 2020) – GGA Partners – international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities – will continue its thought leadership series with the publication of four new whitepapers to help leaders of golf, club, and leisure businesses make better-informed decisions regarding key planning and marketing challenges.  The whitepapers focus on strategic planning, branding, governance, and innovation.

Let’s Face It, Times Are Changing

That may be the understatement of the year.

Between rapidly advancing technology, economic uncertainty, transforming demographic and lifestyle stressors, and a digitally-connected global community, the environment for club and leisure-related businesses is more competitive than ever.

The business landscape is shifting and management stances are evolving, yet the principles of competition endure: one’s gain is another’s loss and the strongest will come out on top.

Knowledge is a tremendous source of strength and GGA Partners is developing authoritative reports on the industry’s most pressing issues and constructing advanced problem-solving guides for the road ahead.

The New Urgency of Strategic Planning

The strategic planning whitepaper, which can now be downloaded from the GGA Partners website, focuses on a misconception regarding the strategic planning process, according to Henry DeLozier, who along with GGA partners Steve Johnston, Rob Hill, Derek Johnston, and Michael Gregory authored the paper.

“Because of its traditional long-range horizons, many club leaders don’t prioritize strategic planning,” DeLozier said. “With conditions inside and outside the club environment changing as quickly as they are, there’s a new urgency to strategic planning.”

In addition, the whitepaper argues for a shorter planning cycle, ranging anywhere from 12 to 24 months, and a closer connection between strategy and execution.

“Businesses that are directly affected by shifts in the economy and consumer preferences should consider shorter planning cycles,” Johnston said.  “Think about it: Would a five-year strategic plan created in 2015 successfully guide your business today?”

Today’s most successful clubs look at their strategic plan as a blueprint for action, Hill added. “They don’t put their plans on a shelf to gather dust. They’re implementing their plans, adjusting as needed and executing their vision for the club.”

For club managers not familiar with the strategic planning process, the whitepaper explains five key steps in developing a plan and draws on examples from inside and outside the private club business.

In addition to strategic planning, other whitepapers in the series focused on branding, governance, and innovation will be published through the third quarter of 2020.  Discover more about the cross-section of high-impact topics GGA Partners is studying at ggapartners.com.

Click here to download the whitepaper

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

Not the Time to Wait

Henry DeLozier highlights three important points for club leaders to ramp up club operations and refine their game plan.

When asked what steps they are taking to prepare their business for the post-COVID-19 environment, many small- and medium-sized business owners and managers say they’re taking a “wait-and-see” approach. While that attitude is understandable, with conditions and health and safety guidelines changing by the day, it’s also not advisable.

The more effective strategy is the one that many other businesses are taking to navigate the crisis in creative and productive ways: Anticipating and preparing for a post-COVID-19 business, whenever that may come and whatever it might resemble.

In a wide range of businesses, preemptive leaders are driving revenue through new marketing tactics and sales channels, putting new incentives in place to spur immediate purchasing and capture pent-up demand, moving more of their in-person interactions online, pivoting their business to address new needs and developing new products to position their business when customer demand returns to normal.

Others are enhancing their digital presence by sprucing up their website with new content or fixing online issues for a better customer experience. And many businesses are strategizing by mapping out potential scenarios for the future.

Three important points to consider when ramping up club operations:

1. Update the club’s financial plan.

The business interruption and financial impacts will be profound and may even threaten the club’s existence. The board must reset the club’s financial plan by evaluating the current in-flow of dues revenue and the realistic projection of pending banquet and catering activity. Refer to the club’s historic reference points for revenue as the key component in ramping up successfully. Balance revenue projections with the probable attrition rate caused by members who will leave the club for health and financial reasons.

Look realistically at the club’s expenses and prepare yourself – they will be discouraging. Plan to restart programs and services in a phased manner that focuses on the most popular and engaging programs in the eyes of your members.

It’s important to remember that members may have different priorities in a post-recession world. Knowing what those are through surveys and focus groups is far more advisable than assuming the old normal is also the new normal. Keep in mind that the club may not be able to restart at a level and pace that meets members’ expectations without what may be significant investments.

In a financial sense, the club is starting over financially. This can be good for clubs overloaded with expensive debt since it gives them incentive to renegotiate their debt structure. Interest rates are at historic lows and will remain so for some time. This makes it a good time to restructure the club’s financial plan to remove historic flaws, such as membership-optional communities and outdated governance practices.

2. Strengthen your team.

Every club in your area is being affected differently by the pandemic. Some will retain staff with little change. Others will be forced to reduce operations, programs and staff. Some of your own employees will decide not to return or may be unavailable. Be prepared and recruit aggressively to fill and strengthen key positions on your team. It’s also a good time to review and update personnel records, roles and benefits.

3. Introduce new social programs.

As leaders hit the reset button, remember that private clubs enjoy an emotional relationship with their members far more than a transactional one. When evaluating and creating programs, consider the following:

Members will want to see one another and be seen. There will be a great opportunity for friends to be reunited and reminded that their club is a safe haven for their families and friends.

Look at events that are either successive – where one event sets the stage for the next – or part of a series of similar events. Give members the sense of ongoing relationships rather than one-off types of events.

Host member information exchanges. As members anticipate their clubs reopening, they will have lots of questions, which can be boiled down to “What’s changed – and what hasn’t?” Assemble a team of staff members who constitute the Answers Team.

Get ahead of questions by anticipating as many as you can and communicating the answers widely through email, newsletters and social media.

Creating a Reliable Game Plan

The most effective transitional leaders will be those who can manage information aggressively. Keep your stakeholder groups of members, employees, suppliers, and extended business partners – like bankers and insurance carriers – well-informed.

Your members and stakeholders want information, to be sure. Even more importantly, they want confidence that their club is in steady hands. They want to see evidence – action more so than talk – that the club is taking measured steps and addressing the key strategic issues without distraction with petty short-term matters. This capability requires a reliable game plan.

In May, GGA Partners conducted a series of weekly webinars to help club leaders construct their game plan and illustrate the thought processes that go into reopening and operating again in the wake of COVID-19. The sessions offered a deeper look into these three important points and tactics to prepare for a post-pandemic business environment.

The archive of each webinar and accompanying slide deck (if applicable) are available on CMAA University, complimentary to all CMAA members. Once you are signed in to CMAA University, you can find the recording and accompanying resources under CMAA Member Education, COVID-19 Resources. The content is then organized by topic area, see below for where each of the four webinars are housed:

Crisis Management and Communications

Changing Communications for Changing Times – Linda Dillenbeck & Bennett DeLozier – May 27, 2020

Member Surveys in Uncertain Times – Michael Gregory & Ben Hopkinson – May 20, 2020

Reopening Your Club

Transitional Leadership: Restarting Your Club – Henry DeLozier – May 6, 2020

If you don’t know your login information, please contact CMAA through this online form.

 

This article also featured in Golf Course Industry magazine

Running Toward Change

This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees because of the global health crisis. Today, Henry DeLozier suggests that change on a massive scale is no longer something that should surprise us.

Technology’s tools give clubs a way to prepare for the new normal.

We’re hearing a lot these days about the “new normal” and how the coronavirus has forever changed the ways we work, shop, travel and interact.

But wasn’t it not long ago that we were talking about another new normal? Remember the new normal that followed the financial crisis of 2007-2008, which led to a global recession? That pivot from the previously abnormal to a new normal ushered in more stringent guidelines for financial institutions and in a much larger sense ushered out the sense of trust we had in many other institutions and the people who ran them.

And although the term was not yet in vogue, didn’t the seismic shift from analog to digital – the tipping point came in 2002, when the world began storing more information in digital than in analog format – qualify as a new normal?

All of which led some creative soul to design a bumper sticker that said it all: Change Happens. (You may remember it with a synonym for change.) The most adaptable among us learn to deal with change; the most successful turn it into a competitive advantage. How do they do it?

Don’t be surprised – be prepared.

When he first heard Bob Dylan’s 1965 anthem “Like a Rolling Stone,” Bruce Springsteen said, “[It] sounded like somebody’d kicked open the door to your mind.” With that song, Dylan changed how artists thought about making music. Major change often seems to arrive suddenly – with the speed of a stone rolling down a steep hill – and without warning. Its capriciousness makes us anxious. But if we know it’s coming, we shouldn’t be surprised. We should be prepared.

An embrace of the tools that technology now affords us is an important key to our preparation.

Derek Johnston, a partner in our firm, says although club leaders could not have anticipated the pandemic, they could have been better prepared.

“Many clubs were ill-prepared to quickly analyze the potential impacts of the coronavirus pandemic, to run initial scenarios, to easily gather more information, to test their hypotheses with their membership and, ultimately, set a course of action,” he says.

That is not to say that clubs have responded poorly. On the contrary, club leaders have performed in truly admirable fashion. Many clubs just had to work much harder than those that had already implemented data analytics processes and plug-and-play dashboarding tools, like MetricsFirst or continuous member feedback tools like MemberInsight.

“Some club leaders still question the need to bother with data analytics tools and programs. This misunderstanding is simply misguided,” Johnston says, adding that the term “analytics” seems to intimidate some and conjure visions of data overload and complexity. Another fallacy, Johnston says. “Data analytics, when executed properly, is intended to actually simplify information and present insights in very crisp, clean, and easy to understand ways.”

Ginni Rometty, executive chair of IBM, told Fortune magazine editor Alan Murray, “There is no doubt this [coronavirus] will speed up everyone’s transition to be a digital business.” She identified four areas of impending change: 1) the movement to the cloud; 2) the move toward automation; 3) the overhaul of supply chains, and 4) the movement toward new ways of doing work. Each force will happen in accelerated fashion, she predicts.

Rometty is not alone in her assessment. Almost two out of three respondents to a recent Fortune survey of Fortune 500 CEOs expect technological transformation to accelerate. Doug Merritt, CEO at Splunk, a big-data platform, pointed out two important observations: 1) a rapid digital transformation and 2) the elevated importance of gathering and interrogating data.

Top-performing clubs will similarly leverage the pandemic to implement advanced methods for executing work and providing services. Retooling such routine practices as monthly billings, guest policy tracking, and point-of-sale transactions will happen quickly. Likewise, separating work from jobs will trend even more in the wake of the pandemic.

“Clubs that are actively maintaining both real-time operating dashboards and strategic dashboards, combined with a proper financial model, are taking preemptive steps toward dealing with change,” Johnston says. “When it happens – and we know it will – they will experience far less conflict amongst their management team and their board. Ultimately, their preparation will enable better decisions, faster.”

Getting the Right People on the Bus

This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Today, in the second of two articles on strategic people planning, Patrick DeLozier (Director, GGA Partners) and Jodie Cunningham (Partner, Optimus Talent Partners) highlight the importance of talent planning and optimization for a post-COVID-19 future.

Now’s a great time to re-examine job requirements to ensure the best fit for your club

In our first article on strategic people planning we discussed the first two phases of talent optimization: 1) adapting your business strategy and 2) plotting your revised organizational structure. In part two, we will focus on phases three and four: 3) selecting the right talent and 4) inspiring people development and engagement.

This part of your strategic people plan centers on filling roles in your organization with people best suited for the job. It’s a process that author Jim Collins in Good to Great likened to bus drivers (leaders) getting the right people on the bus (team), the wrong people off the bus, and the right people in the right seats (roles).

One cautionary note as we begin: Someone who was right for a specific role pre-pandemic may not be right for the same role now. Your business has changed, and some people may need to change seats. Others may need to get off the bus.

Phase 3: Select the Right Talent

Define the job. Before you start inserting applicants and rehires into the selection equation, you need to define your jobs. Without clarity, anyone involved in the hiring process will simply be guessing about those best fit for the job. The answers to a few basic questions will help form a solid job description.

 

  • What are the most important and frequent activities of this role?
  • What specific knowledge, skills and abilities are required?
  • What skills and experiences are complementary to those of the current team?
  • What behavioral style and temperament is best suited in this role?
  • Is independent decision-making or collaboration more important?
  • Does this role require social interaction or a more analytical, introspective approach?
  • Are normal working conditions in this role stable and consistent or constantly changing and pressure-filled?
  • Does this role require a big picture, strategic view where risk taking is welcomed, or is it more task oriented and risk-averse in nature?

To win the war for talent, your managers must be fully invested in driving the hiring process from start to finish. When you train managers to use people data in the hiring process, they will make smart, objective decisions, as opposed to desperate or bias-filled ones. Managers should enter the hiring process with the following information, knowledge and understanding.

 

  • A plan for all three phases of the interview process: before, during and after the interview.
  • A list of functional and behavioral-based questions that ensure consistency across all interviews.
  • An understanding of how to probe for (and evaluate) detailed applicant responses.
  • An understanding of the information they should and should not share regarding club culture, benefits and working experience? (Remember, the applicants are interviewing the club as well.)

Phase 4: Inspire People Development and Engagement

Once you have hired your team, it is critical to keep them engaged and ensure they work effectively together. To do this, you need to be mindful of four forces that can lead to employee disengagement:

 

  • Misalignment with the job. Poorly defined positions, sloppy hiring practices and evolving business needs can create a mismatch between employees and their roles. A bad fit will ultimately affect motivation and productivity.
  • Misalignment with the manager. The relationship between employees and their managers is the most critical contributor to engagement. But many managers are poorly equipped or not trained to effectively understand their employees’ individual needs. They struggle to communicate with and motive their employees.
  • Misalignment with the team. Team-based work is more critical than ever, yet poor communication, insufficient collaboration and an inability to manage tensions inherent to teamwork extract a major toll on productivity and innovation.
  • Misalignment with the culture. To be productive and engaged, employees need to feel they belong. When they feel out of sync with their organization’s values, or when they lose trust in their leadership, their own performance suffers. The result can be a toxic work environment that undermines productivity.

As clubs emerge from a pandemic-enforced hibernation and begin to re-establish business operations, now is an ideal time to evaluate the roles and responsibilities that make your club function efficiently and effectively.

Carefully defining each important job, making sure those involved in the hiring process are well-prepared and being alert to employees who may not be the ideal fit will help ensure that you have the right people on the bus and that they’re in the right seats. Your club’s success depends on it.

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