Tag: corona

Mid-Year Predictions for the Second Half of 2021

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At the start of the new year and in the spirit of planning, the thought leaders at GGA Partners sat down to predict what we believed to be coming throughout the year and shared our 2021 Predictions on the Shape of the Next Normal. Now, halfway through 2021 with the spring season in the books and summer underway, we reconvened GGA leaders for a mid-year check-in on predictions for the latter half of the year.

1. Ensuring fair and equitable access to amenities remains top of mind, especially on the golf course

A trending topic throughout the industry is golf’s demand surge and how long it will sustain, much has been written on this point and those who are closely watching rounds played metrics anticipate a clearer reading by the end of the summer.

Stephen Johnston, GGA’s founding partner, expects that private clubs will see the surge continue to elevate rounds played by members which will likely increase issues relating to compaction of tee traffic and accessibility.  He predicts the benchmark regarding average number of rounds per member to be higher by approximately 10% following the pandemic and also increased golf course utilization by members’ spouses and family members.  Both factors will create a greater demand for tee times at private clubs.

Johnston believes some clubs may need to consider permitting round play by fivesomes instead of foursomes, potentially catalyzing logistical challenges such as a greater need for single-rider power carts in order to maintain speed of play at the same rate as foursomes with all players using power carts. For club managers and course operators, this entails an increased need for current and detailed evaluation of the benefits of membership and the relationship between playing privileges and the practical ability to book a tee time and get on-course.

2. Effective demand management is key and will shift from agile, flexible approaches to new operating standards as demand stabilizes

During the pandemic and throughout 2020, many golf, club, and leisure businesses recognized the increased need to more accurately and routinely measure the utilization of amenities, adapting operations management to react quickly to change.

Craig Johnston, head of GGA’s transaction advisory practice, anticipates an evolution in this one-day-at-a-time, agile monitoring approach into a new and more formalized standard of operating procedures.  “At the start of 2021, we said we would see clubs provide flexibility and experiment with various operational changes,” he explained.  “With the pandemic feeling like it’s steadily moving toward the rear-view mirror, members will be expecting clubs to begin instituting the ‘new normal’ operations and the data compiled by clubs in the first half of the year will be critical to deciding on the new normal.”

Johnston believes that membership demand will continue to be strong through the second half of the year and that it is likely utilization will reduce marginally as members begin travelling again for work and social obligations.  Even with a marginal reduction in utilization, demand for private club services will remain strong and will continue to put pressure on capacity and access in most clubs.

Senior Partner Henry DeLozier encourages club and facility operators to embrace short-term continuations of high demand while keeping an eye on the future and the non-zero probability of a demand shift in the coming years.  “Clubs must create pathways to sustain demand while navigating utilization volume.  It is unwise to place hard or irreversible limitations on capacity while clubs are at historic maximums for demand and usage,” cautioned DeLozier. “Clubs will do well to establish a clear understanding of demand and utilization to enable innovative programs which serve to fill periods of low demand in the future.”

3. Ongoing uncertainty about the pandemic’s long-term impact on club finances will increase the review and reevaluation of club financial projections to ensure sustained budget flexibility

While data regarding utilization, participation, and engagement throughout the summer months continues to be captured and consolidated, business leaders should not delay their financial planning and instead get to work on reevaluating finances and updating their future forecasts.

“Now is the time to review, evaluate, and reset club debt levels,” emphasized Henry DeLozier. “Clubs need to recast financial projections based upon elevated joining/initiation fees arising from high demand.”

In support of alacrity in financial planning, DeLozier notes that labor shortages spurred by the pandemic will increase payroll-related costs at a material level. He also predicts that comprehensive risk review is needed at most clubs to evaluate possible impacts arising from cyber-crime and/or declining club revenues during 2022.

Beyond internal shake-ups in utilization or operations, club leaders should be anticipating external impacts that could impact their financial plans.  A hypothetical example raised by DeLozier is if the U.S. economy were to become more inflationary.  In such a circumstance he believes clubs would see an increase in the costs of labor and supplies which would necessitate increases in member dues and fees, a deceleration of new-member enrollments as consumer confidence dips, and a slight slow-down in housing demand.

Right now, uncertainty remains with respect to the virus as well as the resulting economic impact from the pandemic. From a financial standpoint, clubs will do well to advance their forward planning while retaining budget elasticity.  “It will be imperative for clubs and boards to build flexibility into their budgets and agility into their operations,” added Craig Johnston.

4. Existing governance practices, policies, and procedures will be revisited, refurbished, and reinvigorated

A litany of new ways of operating and governing the club arose as a result of the pandemic, some of which suggest an efficacy that can be sustained in a post-pandemic environment.  Essential to assimilating these adaptions into new standards of procedure is a review of existing governance practices and the documentation which supports them.

“At a time when boards can measure the full range of financial performance metrics, updating club governing documents is a primary board responsibility,” noted Henry DeLozier.  “Board room succession planning must be formalized to prepare clubs for the inevitable downturn from record high utilization.”

In considering the nearly overnight adoption of technology tools to enable remote meetings and board-level deliberations, partner Michael Gregory noted a substantial increase in the use of technology tools that go beyond virtual Zoom meetings.  “The pandemic has allowed clubs to test online voting,” he explained.  “For many clubs, once things return to normal, their bylaws won’t allow for the continued execution of online voting unless they make changes.”

“We have seen the adoption and implementation of online voting to be a huge success for the clubs who have tried it for the first time,” said Gregory. “Members love it, it’s easy, it’s convenient, it leads to higher participation from the membership, and many clubs are in the process of changing their governing documents to allow for online voting as a result.”  The challenges and opportunities of employing online voting are detailed in our piece on taking club elections digital, which features a downloadable resource that can be shared among club boards.

5. In human resources, expect to see deeper reevaluations of compensation structures and employee value propositions

Weighing in from across the pond, Rob Hill, partner and managing director of GGA’s EMEA office in Dublin, predicts that club leaders will face bigger challenges in human resources throughout the remainder of 2021.

The first of three particular items he called out is a reevaluation of compensation.  “Making decisions about employee pay is among the biggest challenges facing club leaders in the wake of the coronavirus shutdown,” stated Hill. “As they begin compensation planning for the rest of the year and into 2022, these leaders not only have to consider pay levels, but also the suitability of their mission and operating model to thrive in a post-pandemic world.”

Citing his recent experiences in the European market, Hill shared that club leaders are challenged with finding new ways to operate smarter and more efficiently, while also looking for innovative ways to implement sturdy, low-cost solutions that their employees will love.  Which leads to his second point, that there will be a renewed emphasis on what employees love and how clubs, as employers, can provide an enhanced value proposition for their employees.

“As employees get back to work onsite, employers are finding that what their people value from the employment relationship has changed,” Hill explained.  “Where pay has been viewed as largely transactional in the past, clubs may need to provide new types of benefits, especially programs that provide more flexibility, financial security, and empowerment to retain and motivate their people.”

Lastly, there is likely to be considerable movement of talent over the coming year brought on by employees’ new work-life ambitions and financial imperatives, said Hill, “As demand for their skills and experience grows, the very best talent will seek out employers that demonstrate they view employees not as costs but as assets and reflect this in their approach to compensation.”

Recalling our start-of-year prediction that the movement of people and relocation of companies will reshape markets, partner Craig Johnston added, “The relocation of people continues to be a prominent trend and one that is likely to continue in the second half of the year.”  For club employers, it’s not just the changing physical locations which impact the cost and supply of labor, but also the expectations of employees as they seek out competitive new roles and work experiences.

6. The repurposing and reimagining of club facilities, amenities, and member-use areas will continue

The pandemic pushed to the fore the need for clubs to adapt their facilities to match changes in the ways members use and enjoy their clubs.  A combination of practical evolutions for health and safety and circumstantial evolutions drawn from widespread ability for members to work remotely created increased desire for clubs to offer more casual outdoor dining options and spaces to enable members to conduct work while at the club.

Partner Stephen Johnston believes these sentiments will continue to near-term facility improvements at clubs.  “With more flexibility in the workplace and members working from home periodically, there will be a need at the club for members to do work or take calls before their tee time or their lunch date,” he said.  “It has been evident for some time that members generally prefer to enjoy outdoor dining and since, throughout the pandemic, it has become apparent that guests draw greater comfort in outdoor experiences, I see a greater demand for outside patio and food and beverage service.”

As society begins to reopen and communities begin to stabilize, time can only tell precisely how clubs will continue to evolve their operations, whether that be scaling back pandemic-relevant operations or doubling-down on new services and efficiencies.  Evident in our work with clients are significant efforts to reorganize club leaders, reevaluate operations, and retool plans for a successful future in the new normal.  Here are a few highlights of efforts clubs are making for the next normal:

 

  • Reinvigoration of governance processes and engagement of leaders to ensure alignment between boards and club strategic plans.
  • Renewed surveying of members to keep a pulse on how sentiments have changed from pre-pandemic, during pandemic, and currently as communities stabilize.
  • Enhanced adoption and application of electronic voting as clubs reevaluate membership structures, governing documents, and operating policies amidst “displaced” members.
  • Reconfiguring of budgets, capital plans, and long-range financial models.
  • Refinement and advancement of membership marketing strategies, tactics, and materials.
  • Tightening relationships between facility planning, capital improvements, and member communications campaigns.

Webinar 5/5: The Most Underrated Club Metrics

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Jonas Club Software & GGA Partners to Co-host a Webinar Revealing the Most Underrated Club Metrics

Markham, ON Canada – Join Jonas Club Software and GGA Partners, the trusted advisors to the golf, private club, and leisure industries, in a special webinar event, discussing the most underrated club metrics that clubs should be paying attention to in 2021. With private clubs undergoing so much transformation in the last 12 months, many clubs are experiencing trends of rapid change and, as a result, require a plan to monitor membership like never before.

Focusing on metrics to help club management make more informed decisions, the session will cover metrics focusing on membership demographics, risk, spending and utilization. The session will be co-presented by Trevor Coughlan, VP of Marketing and Mark Darling, Product Manager – MetricsFirst, of Jonas Club Software, and Derek Johnston, Partner and Martin Tzankov, Senior Manager of GGA Partners.

The session will take place on Wednesday, May 5th, 2021 at 1:00 P.M. ET.

If you would like to attend this 45-minute session, registration is available for free by visiting: https://attendee.gotowebinar.com/register/6315081732484665869.

Register for free →

 

About Jonas Club Software

Jonas Club Software helps clubs thrive by focusing on the creation of exceptional experiences. These experiences are delivered through industry-leading services, integrated applications, innovative technology, and long-term partnerships with the clubs we serve.

Over 2,300 clubs in more than 20 countries, with memberships ranging from 20 to 20,000, utilize Jonas Club Software technology. With applications ranging from Accounting to Retail Point of Sale, Tee Time Management, Court & Class Booking, Dining Reservations, websites and Mobile Apps, Jonas Club Software is the standout choice for clubs driven to offer exceptional member experiences. For more details visit www.jonasclub.com.

 

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. GGA Partners has offices in Toronto, Ontario, Phoenix, Arizona, Bluffton, South Carolina, and Dublin, Ireland. For more information, please visit ggapartners.com.

 

Media Contact:
Trevor Coughlan
Vice President, Marketing
Jonas Club Software
Trevor.Coughlan@jonasclub.com
1-888-789-9073

2021 Predictions on the Shape of the Next Normal

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When we were introduced to COVID-19 in March 2020, no one had any indication that ten months later the number of cases and its toll on society would continue to rise. The introduction of a vaccine is promising, but the road ahead remains filled with uncertainty as to when the next normal will arrive – and what shape that normal will adopt.

Since its inception, GGA Partners has traveled the globe working with private clubs, golf courses, investors, real estate developers, resorts, municipalities, and financial institutions. This has provided unique insight into the state of golf, private club, and leisure businesses from many different perspectives.

We have observed that even before the coronavirus pandemic, significant change was underway across the private club landscape. As we prepare for the “new normal” the thought leaders at GGA sat down to predict what they believe is coming in 2021 and beyond.

1. COVID-19 accelerates change already afoot in governance

According to Senior Partner Henry DeLozier, the change brought on by the pandemic is going to necessitate even more rapid change in governance, which GGA has seen clubs struggle with this past year.

“In corporate America, the concept of stakeholder capitalism was at the forefront in 2020 and that has transcended to the private club space,” commented DeLozier. “We’re hearing members across the private club spectrum questioning why they do not have a larger voice in their club and how board selections, as well as decisions, are being made.”

Private clubs that do not have current and effective governance will suffer from decreased member satisfaction and a constant churn of its membership base.

2. The capability to communicate effectively and efficiently will be key

Linda Dillenbeck, GGA’s director for the firm’s communications practice, stated that there continues to be a need to assist clubs in their efforts to communicate effectively and efficiently.

“It is basic human nature that people do not like change,” said Dillenbeck. “To minimize the disruption of pending changes, it is incumbent upon the management team and board of directors to clearly communicate the what, how, and why of their decisions then allow members to voice their opinions. This provides the level of two-way communication members are demanding.”

In addition to communications about club finances and capital improvements, clubs need to improve the use of the data they have collected to provide tailored communications to members. For example, notices about evolving restrictions on golf events should only be sent to those who play and those about activities for families with children don’t need to be sent to empty nesters.

Beyond member communications, clubs that will be successful in 2021 will be those which can retool and refine their external communications to ensure the message of what truly makes the club unique is presented clearly.

3. Greater work flexibility will impact club utilization in new and challenging ways

Report after report has trumpeted the tremendous increase in rounds played during the pandemic. According to GGA Director John Strawn, that is in large part due to work-from-home adaptations which are providing greater flexibility in how and when employees complete their daily tasks.

“People have more control over their work lives,” said Strawn. “Golf experienced fewer restrictions during the pandemic and that has brought out many new and fringe players leading to full tee sheets at both private and public golf courses.”

Full tee sheets are causing negative feedback from those who play more frequently as there is a belief that those not paying full dues are taking coveted tee times. To solve the problem, Strawn predicts clubs will need to revisit their strategies and ultimately their business models more frequently to ensure they are meeting this new and different demand effectively. Flexibility will be critical until the long-term impact on golf demand is better understood.

While clubs continue struggling to ensure fair and equitable access to the tee or courts while accommodating increased demand, Senior Associate Andrew Milne added that clubs should expect that best practice solutions may shift regarding reservations and tee sheet management to include lottery systems and Chelsea systems to ensure dissatisfaction among members is minimized. Understanding that new reservation management approaches may change the value proposition for members, a clear plan and message acknowledging this, and for measuring and adapting the approach as the future becomes clearer, will be important.

4. Clubs must better understand what women want from their club

According to the National Golf Foundation, while only one in five golfers are women, females represent a disproportionately higher percentage of beginners (31%).

Women ease into the game for a variety of reasons; to spend time with their family, to compete, to be outdoors, and to enjoy the support, community, and socialization. As these women age and consider joining a club, they will choose the clubs that shape programs, staff, activities, and offerings to blend the female competitive group with the group that is more interested in the social community.

“We’ve known for some time just how important the role of women and the family dynamic is regarding the decision on whether to join a private club,” commented GGA Director Murray Blair. “For clubs to succeed in 2021 and beyond, they will need to understand how women are impacting the decision-making process and implement the necessary adjustments to make them feel welcome, whether they play golf or not.”

5. Operational efficiencies gained during the pandemic will carry forward in 2021, and their challenges will too

Among the most remarkable takeaways from 2020 was the ability for clubs to adapt their operations and service offerings swiftly and effectively in the face of facility closures, variable human resource availability, and rapidly changing restrictions for public health and safety.

Contactless payments, varying tee time intervals, and pace dispersion tactics are pandemic-inspired efficiencies which GGA Associate Andrew Johnson predicts will continue.

Adding to the list, GGA Director Ben Hopkinson expects clubs will become more efficient at managing grab-and-go meals, take-out dining, and mobile ordering, following the best practices of companies like Uber Eats and DoorDash.

New ways of operating have also brought about new challenges, some of which will persist into 2021 and require even more new solutions to be generated at clubs and courses.

GGA Senior Associate Andrew Johnson expects that the increased costs associated with COVID-19 mandated protocols such as labor for sanitation and cleaning, as well as elevated maintenance expenses due to increased rounds, will remain through 2021.

Clubs that effectively determine what increased interest and golf participation means for facility accessibility, program creation, membership categories and associated privileges will find increased membership satisfaction and interest from new prospects.

6. The pandemic’s impact on club finances will remain uncertain, expect to see more measurement, flexibility, and experimentation

Despite successful adaptations in club operations and economic relief opportunities afforded by governments and municipalities, the full extent of the pandemic’s economic impact will remain varied across club types depending on business structures and market areas.

GGA Senior Manager Martin Tzankov, remains concerned about the financial position of many clubs and believes the brunt of the economic impact has yet to be seen.

“The reliance of clubs on dues increases and capital assessments has been particularly apparent this year and may have stretched the value proposition too far for some,” stated Tzankov.  “2021 will show the clubs where a clear and present value proposition is being presented to members, who in turn, will continue to pay the cost of belonging.”

GGA Partner Derek Johnston believes there are clubs that will be able to increase pricing and sustain the increases in the long-term and there are clubs that will overshoot the mark. Johnston expressed concern that some clubs may move joining fees too high, too fast; golf businesses may move their green fees too high, too fast; and some may move away from tee sheet management practices too quickly.

“Nobody knows what’s coming.  If clubs have experienced less attrition than in the past, it may be due to members being unwilling to give up their safe sanctuary, but when things begin to stabilize post-vaccine that may not persist,” he explained.  “I believe that a portion of the historical attrition hasn’t been abated, just held back.  There will be increased attrition over the next 12-24 months and there may not be the same demand there to replace those who leave, especially as other social and lifestyle pursuits become more widely available again.”

2021 will be a time for clubs to experiment.  A measured, flexible approach to joining fees and dues will be a prudent approach this year.

7. A club’s success will in part be driven by its sum of parts in 2021

Craig Johnston, a partner and head of GGA’s transaction advisory practice, emphasized that the success of clubs during and following the pandemic will in part be driven by its sum of parts. Johnston explained “A private club may include a fitness center, retail store, several restaurants, a golf course, and a marina. The pandemic has impacted the utilization and thus success of all those ‘parts’ differently, and therefore the overall success of the club will largely be dependent on the club’s product or shall we say parts mix.”

“Every club is going to be different depending on its type of business and the operations which comprise it, the extent and variability of pandemic-related changes means that comparatives are going to need to be refined,” continued Johnston.  “Clubs that understand and appreciate the challenges and successes of the various parts of their business will be in a better position to realign and optimize heading into the ‘new normal’.”

8. The movement of people and relocation of companies will reshape markets

Our news feeds have been full of stories about high-profile people and companies moving out of California into Texas, as well as the movement of bankers to Florida from New York. If looking at this as a trend, you might imagine seeing increased need and greater attrition among clubs in the California and New York markets and, conversely, excess demand for clubs in markets like Texas and Florida.

According to GGA Manager Alison Corner, it will be important for clubs to understand the movement of people – not just the movement away from major urban centers and into the suburbs, but also the movement of companies and the actual physical locations of corporations – because they may have drastic impacts to how certain club and leisure businesses perform over the next 5 – 10 years.

Clubs that are mindful of these relocation trends will help themselves to recognize and either seize new opportunities, or mitigate future risks.

Getting the Right People on the Bus

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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.

RelationSHIFTS: COVID-19 and a ‘New Normal’ for Clubs

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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, Laurie Martin (Founder/CEO, Life Interrupted Inc.) offers several tips for club leaders to consider while navigating the ‘new normal’.

As a leader, you have made it through the initial weeks running on adrenaline as you and your organization have had to pivot quickly to address the COVID crisis. While you continue adapting to your makeshift workspaces at home, and preparing to keep your people safe, the realities of emotional, physical and psychological upheaval are revealed

Over the past few weeks, I have noticed a common thread of stresses related to adaptation and uncertainty. Phrases like: “Since I’ve been home, I have never worked this hard”, “I need stress-debriefing techniques to keep my sanity” and “I can’t stand this!” demonstrate the need to acknowledge the tensions in our surroundings and start a conversation about finding stability and hope.

Now, clubs around the world are moving into position to open slowly and methodically. As a leader, your fears and concerns for employees and their families, members, and the general public are heightened. The focus has been on best practices to deter or stop COVID-19 from coming to the club.  Now, employees have become essential workers and their stress levels will be heightened.

Leaders will need to create best safety practices that work for their clubs.  They will also need to provide a support system to help employees and members deal with the enormous changes of the new normal at clubs.  Employees will be looking at each other wearing appropriate personal protection equipment and following a series of new safety protocols and wonder if the masks or shields will protect them. Members will now be playing their sport very differently and question whether the club will ever be the same again.

There’s no question, this pandemic has created a different way for clubs to operate now and likely in the future.  The templates of tasks and best practices that clubs around the world have received are only a small part of what employees and leaders need to consider.  Each club is unique, with its own practices and services. As a leader, you will have to determine what works best for the club. You may consider to have a second opinion from an external professional working in risk management/health and safety professional guiding you to opening day.

Here are some tips to consider while coping with the new normal at your club:

Embrace the new normal

Our professional and personal lives have shifted and it is important to accept the reality that things will never go back to the way they were. Create new plans, or enhance previous plans and enjoy the freedom to be creative.  Use the skills and knowledge you’ve accumulated through this crisis.

Choose your thoughts

If we do not choose positive thoughts, we will face sadness and experience that “I give up” feeling. Try to remain optimistic and choose thoughts that will motivate you. You must believe you can do something, or you won’t even try. You can overcome negative thoughts with positive ones.

Stay connected

Fear isolates and distances people. As a leader and an entrepreneur, it is your responsibility to keep your family, friends, employees, colleagues, board of directors, and members connected and updated. Communication, collaboration and transparency are key during this difficult time. Promote video chats, share resources, reach out and ask how everyone is doing, encourage more casual interactions, and spread optimism. This is also an opportunity to learn new things to enhance your knowledge and streamline your business.

Share your feelings

It is beneficial to demonstrate the emotional side of your leadership, especially in tough times where members, friends, family, and colleagues are anxious or uncertain of the impact of COVID-19 on the economy. Now is the time to reach out and ask how others are dealing with working from home or with the stress of COVID-19. It’s also good to share your concerns. Sharing your own vulnerability will help others to do the same. Remember, we are all experiencing similar feelings of grief, stress, uncertainty and living day by day.

Accept diversity

It is important to remember that each one of us has a unique home life. Our lifestyles, habits and priorities all differ, which is coming to light as we collaborate from our homes. Some may be experiencing additional challenges such as financial burdens, potential job loss, death of a loved one, divorce, fear of going back to work, etc., and it is important to be mindful of this. Additionally, our methods of coping differ, so be gentle and try to keep an open mind.  It’s important to create time out for yourself too.

Stay away from deception and misinformation

There is a great deal of fear associated with the COVID-19 pandemic and, unfortunately, this fear has triggered a wave of insecurity, and misinformation. It is important to distance yourself from this when possible. Ignore negativity and work from facts not rumours. Educate yourself by reading reputable, peer-reviewed sources and recognize and address your own fears. Contact an external resource you know in the club industry that provides education and tools that can be resourceful.

Set boundaries

If you live with others in your home, working in tight quarters can cause increased stress nd frustration. It is important to establish boundaries. Determine who is going to be in which room, when, and set an agreed time limit for how long.  This will help minimize disruptions.  Having a clear conversation about how to reasonably share your home space will ultimately reduce conflict. You may want to consider setting boundaries on screen time and media exposure which can reduce the feelings of being overwhelmed and help you gain control of your situation.

Create a routine

If you are working from home, building a routine will help you foster a sense of normalcy and allow you to stay on track. Wake up at your usual time, get dressed as you would normally, have your coffee and breakfast, get your kids ready, stick to some type of exercise regimen. Create a good night-time routine and stay away from reading emails before bed.  This will keep your immune system healthy and boost your resilience.

Take breaks

Taking breaks throughout your workday is pivotal to productivity. Take a 5-10-minute break every hour to stretch, take deep breaths, drink water, have a healthy snack or get some fresh air. You should also take some time to have your lunch each day. Support a local business in your area by ordering food through a delivery service.

Practice self-care

As leaders, it is natural to put the needs of your family, employees and members before your own. However, it is important to take care of yourself too. Take care of your body, your mind, and your spirit.  Make time to unwind.  Practising self-care will reduce your stress, clear your mind, and help you to better support and work with others.

Don’t forget hope

While COVID-19 is impacting our daily routines, it is comforting to know that there are still moments of strength that help us realize we can get through this together. Communities coming together, inspiring stories, businesses opening, and people connecting while respecting physical distancing are all signs of hope that we shouldn’t ignore.

A ‘new normal’ for leaders

As leaders, you’ve already felt the stress and emotional upheaval when the clubs were closed down for the pandemic.  Now you get to experience the stress of anticipating when they will open again, and question whether you’re doing everything you can to keep people safe.  Hopefully, leaders are doing their due diligence by taking the templates and customising the best practices and creating policies in place, ordering personal protective equipment and supplies ahead of time.  Asking for a second opinion by reaching out to the services of risk management or health and safety experts familiar with the club industry to guide them to a new normal for pre- and post-opening day.

Although these days are filled with uncertainty and we continue to feel overwhelmed, disconnected and out of control, it is important remember we are all in this together. There will be an end to this pandemic, and we are going to learn a lot about ourselves as leaders and as people.

 

Laurie Martin, CTTS, EPC, founder of Life Interrupted Inc.

She is an innovator with an ability to change the way club leaders think, both professionally and personally, and to enhance their lives.  Laurie brings over 25 years of risk management and crisis education experience, and more than 17,000 hours of accredited frontline experience.  She educates by using a solid process for preparing for any crisis or critical life interruption, before, during and after.  Laurie’s techniques keep leaders and their teams connected, resilient, focused and to stay safe.  All programs provide education credits.  To learn more, contact Laurie at laurie@lifeinterrupted.ca, or, visit lifeinterrupted.ca.

Talent: The Big Differentiator

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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 first 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.

A strategic people plan turns vision into reality.

“You can design and create and build the most wonderful place in the world. But it takes people to make the dream a reality.”

– Walt Disney

Every club has a strategy and a corresponding expectation: If it executes the strategy effectively, it will grow and prosper. Underpinning its strategy are detailed plans – financial plans, marketing plans, capital plans and agronomic plans. The most successful businesses, including the most successful private clubs, also have what we consider the most important plan – a people plan.

Creating a people plan – one that aligns the goals of an overall strategy with the talents and passions of your team – is a discipline known as talent optimization. Just as Walt Disney turned over the execution of his vision for “the most wonderful place in the world” to smart managers and thousands of Disney cast members, today’s astute club leaders turn to their teams of dedicated staff to implement their vision for long-term success.

As you face the challenges brought on by this crisis, there is no better time to examine your staffing model and create a strategic people plan to guide your new normal. In a post-pandemic future, your people strategy must change because the world has changed. There are four important phases to navigate to adjust your talent optimization plan:

Phase 1: Adapt your business strategy

Based on how business has changed recently, ask yourself:

 

  • What are you trying to accomplish?
  • What does success look like?
  • How will you flex to meet the demands of your new normal?
  • What new processes/products/services will you offer?
  • What processes/products/services will you eliminate?
  • Operationally and culturally, what’s working? What’s not working?

Recalibrating your strategy will involve tough decisions. You will need to assess the strength of the business, an exercise that will force an examination of people in key management positions, as well as support staff. For help, reach out to your network and bounce ideas off your colleagues. Enlist professional consultants to brainstorm best practices. And don’t be deterred if you hear “that will never work.”  Most great ideas start with critics who recite those exact words.

This is the perfect opportunity to hit the reset button. Think about all the times you wished you could make changes but allowed circumstances to delay acting. Now is the time to give yourself permission to pivot, to try new things and to take calculated risks.

Phase 2: Plot your revised organizational structure

As you finalize your new business strategy, you need to flex your people plan.

 

  • Take time to reimagine how your team should be optimally structured
  • What does your perfect world organizational chart look like?
  • What talents do you need more of? Less of?
  • Don’t think “specific people, specific titles, specific pay rates”
  • Instead, think “positions, responsibilities, behaviors, skills and talents”

As you create this new organizational structure, keep in mind how your operation is changing.  Will there be more curbside service in the future? Will there be fewer group activities? Will there be a greater need for virtual activities? Will there be a less formal food and beverage operation? Will there be a greater need for technology integration?

The Future Is Now

Let’s be clear about why a club business strategy is important:

 

  • It determines where the club is going
  • It gives a sense of direction for the entire club, employees and members alike
  • It supports smarter decision-making

Your club business strategy, which communicates key aspects of why and how the club operates, includes:

 

  • Objectives the club wants to achieve
  • Its services, products, stakeholders and members
  • Guidance on how the club competes and operates in its segment
  • Financial resources required to achieve the objectives and support the operating model

Talent is arguably the last big differentiator a business has. It is what stands between average clubs and innovative clubs. In our next article, we will dig into phases three and four and discuss the process of selecting the right talent to support your revised business strategy and creating a plan to develop that talent for long term success.

Webinar: A Changing Future for Golf Course Superintendents

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This webinar was originally aired by the Florida Chapter of the Golf Course Superintendents Association of America.

The Florida Chapter of the Golf Course Superintendents Association of America (GCSAA) and Henry DeLozier, GGA Partners, have a frank discussion on golf and what the future might look like for golf and golf course superintendents in Florida.

Speaking with Nick Kearns, Director of Green and Grounds at The Oaks Club and President of the Florida GCSAA, Henry shares his big picture perspective on changes resulting from the global health crisis and the details to which golf course superintendents need to be paying attention.

Spotlight:

 

  • Budgets will come under pressure, anticipated economic slowdown and its impact on golf course maintenance budgets.
  • The significance of the golf course superintendent and his/her ability to provide patrons a safe platform to enjoy golf will increase.
  • Emerging trends and best practices in the industry, pre-vaccine and post-vaccine.
  • Accelerated pace of change and impacts on supply chain.
  • Heightened expectations for expertise, prioritization, and communication.
  • And much more.

 

(29 minute watch)

Tactics for Financial Stewardship in a Crisis (Part 2)

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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 discussing financial stewardship, partner and head of transaction advisory, Craig Johnston, outlines information and tactics which should be considered in developing your club’s financial plans in times of crisis.

As businesses across North America begin to re-open, ever-changing social and economic circumstances further complicate the decision-making process, and now more than ever it is imperative that business leaders have access to the critical information which impacts their business.

In the midst of a crisis, we believe prudent financial stewards should embark on a phased approach to financial planning and analysis. The three phases are:

1. Cash Preservation

2. Sustainability

3. Opportunity

The immediate focus should be on cash and cash preservation. The familiar adage Cash is King takes on even greater importance in crisis situations. Next, the focus shifts to reviewing key risks to long-term sustainability and developing plans to reduce and combat those risks. Once a game plan is understood for sustainability, business leaders should explore opportunities to enhance member experience, reduce operating or capital costs, and increase return on investment.

To navigate these three phases, two critical financial platforms are required: a detailed annual budget and a club financial model.

Often these platforms are considered one in the same, but they are not. A detailed annual budget should be designed on a monthly basis and based on agreed upon key performance indicators (KPIs) and specific circumstances for the year. A club financial model should be designed on an annual basis and based on historical and budgeted KPIs as well as other economic inputs. The monthly budget is important to support cash preservation analyses while the financial model supports long-term sustainability scrutiny and enhancement opportunity exploration.

Both platforms should be dynamic, both platforms should encompass all three financial statements, and both platforms are a must-have. By “dynamic”, we mean easily adjustable for various economic and club-specific KPIs and, by “all three”, we mean income statement, cash flow statement and balance sheet. (Yes, a club should set and approve a budget at the outset of every year, but that does not mean the platform it was developed under needs to be static.)

The information required to develop both platforms include:

  • Historical audited financial statements, including notes.
  • Detailed department financial schedules, including breakdown of fixed and variable expenses.
  • Membership information, including counts, fees, attrition rates and sales expectations.
  • Debt agreements and schedules, including covenant calculations, coupon rates and terms.
  • Labour contracts and employment agreements.
  • Supplier and vendor contracts and agreements, including terms and pricing.
  • Capital project listing, including historical expenditures, reserve studies and facilities plans.

The specific tactics under each phase of planning and analysis will vary from club to club, but some predominant examples include:

1. Cash Preservation

a. Analyze current club liquidity: evaluate the club’s current balance sheet, including available cash, receivables and payables based on an up-to-date budget, then leverage the monthly budgets to assess the near-term (three to six months) liquidity based on estimated revenues and expenses.

b. Scenario analysis: complete various scenario analysis within the annual budget platform (designed on a monthly basis) based on potential closure and re-opening scenarios. This requires a realistic evaluation of the impact of each scenario from department managers.

Based on the results of the above, determine if any near-term adjustments (staffing changes, discussions and negotiations with suppliers and lenders) are required for cash preservation.

2. Sustainability

a. Anticipate attrition rates: depending on the timing of annual dues payments, attrition rates during times of crisis can be significant. Running scenario analysis based on various levels of attrition and their impact on the club’s long-term sustainability is essential.

b. Estimate decline in membership sales: some clubs may rely on entrance fees to support operating expenses, or more predominantly capital maintenance expenditures. Evaluating the potential decline in new membership sales over the short and medium-term, and its impact on club sustainability is critical.

Based on the results of the scenario analyses, scrutinize the club’s operating model to address discrepancies between cash inflows and cash outflows. This may require moderate or significant reductions to the club’s operating profile, including hours of operation and levels of high-touch service, for example.

3. Opportunity

The review of enhancement opportunities may come about during the focus on sustainability, as the club looks at unique ways to better align cash outflows with cash inflows. However, for clubs where sustainability is straightforwardly achievable, the focus on opportunity will follow sustainability. Areas of opportunity include:

a. Staffing profile: use times of disruption to consider changes to your management team and right sizing of your staffing profile.

b. Debt re-structuring: meet with the club’s lender(s) to discuss revised terms to the current debt agreements. Interest rates are near all-time lows, and although the numerator on certain coverage ratio calculations has declined, a preferable rate or term may be available.

c. Capital projects: favorable prices may be available on large-scale projects or purchases during times of crises. Consider moving ahead with large-scale projects if the potential savings are meaningful and there is a high degree of confidence in the club’s financial sustainability.

Navigating through crisis in this phased approach – while adhering to the guiding principles of financial stewardship – will help clubs develop financial plans which offer short-term solutions and lasting success.

Podcast: The Changing Face of the Golf Industry

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This podcast originally aired by the American Society of Golf Course Architects as part of their ASGCA Insights.

Speaking with Marc Whitney, Director of Communications at the American Society of Golf Course Architects (ASGCA), Henry DeLozier of GGA Partners provides his unique business perspective on the changing face of the golf industry in light of the global health crisis.

“Control the things that you can control. Adaptability for all parties is the key going forward. Now is the time for clubs and architects to come together. Architects can bring forward cost effective designs and ideas to make clubs more successful.”

Listen to Henry’s perspective on where golf finds itself today and how the industry can focus on the future while also learning from the past.

 

(13 minute listen)

The New Normal?

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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, Henry DeLozier discusses steps to take in advance of reopening and ramping up operations.

We may not know what our world will look like after the current crisis subsides and our clubs reopen, but we should be preparing for it nonetheless.

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

The more effective strategy is the one that many other businesses are taking to navigate the crisis in creative and productive ways. Their leaders may not know what the future holds, but they’re getting ready to adapt to whatever is necessary to succeed.

As clubs begin to ramp up into a post-virus world, private club leaders, in concert with key operational managers, well-informed members and designated board members, are following four important guidelines:

1. Updating 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.

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 may be starting over. 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 that way 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. Strengthening the team.

Every club in your area is 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. Introducing 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. (Example: “around-the-world” theme parties featuring different destinations members traveled to without leaving the comfort of the West Bay Club in south Florida, executed by Brian Schultz, the club’s former manager.)

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

We may not know what the new normal will look and feel like until it arrives. Meanwhile, we know members will be anxious to return to their clubs and to take advantage of all it offers them. Taking the steps outlined above will help get your club ready.

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