Podcast: The Changing Face of the Golf Industry

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)

Breaking Down Muni Misconceptions

The profile of the typical municipal course golfer isn’t flattering: outfit from Goodwill, handicap (if he has one) well into double figures and frugal to a fault, especially when it comes to green fees.

To use a term made popular by former vice president Joe Biden, conventional wisdom is a “bunch of malarkey” — at least the part that paints the muni golfer willing to play any available goat track as long as it’s cheap.

“Loyal muni golfers will surprise you,” says Derek Johnston, a fellow partner at Global Golf Advisors Partners, who oversaw a research project our firm conducted for the city and county of Los Angeles. “Our research showed that municipal golfers can be not only extremely proud of the courses they play, but also extremely loyal.”

The common thinking among public course administrators and operators is that keeping prices low is the key to golfer satisfaction, loyalty and engagement. However, the GGA Partners study of several thousand L.A.-area municipal course golfers revealed that most are not as price-conscious as their reputation suggests. In fact, most say they would pay a higher green fee if certain important criteria are achieved.

The first of those criteria is course conditioning. Specifically, golfers referenced improved putting surfaces — more consistent roll and green speed — and teeing areas. Whether their home course was one of the premier muni courses within the city and county system or one of the more modest, these golfers cited golf course conditions as a top priority and worthy of a few more bucks.

But what do they consider “higher prices?” Seventy percent of those surveyed said they would be willing to pay a 5 percent to 15 percent higher green fee for improved course conditions.

“For most of these courses, a 10 percent increase on average in green fee revenue is significant, given the high volume of rounds played,” Johnston says. “Revenue growth of this proportion recommends serious consideration for investing the resources required to produce improved playing surfaces.”

The second surprising finding from GGA Partners’ research in Los Angeles was the importance golfers placed on pace of play in relation to the value they received for their green fee. Fifty-five percent of muni course golfers expressed a willingness to pay more per round for improved pace of play. “Teaming with USGA analysts, who conducted on-site golfer tests, we learned that pace of play and the sense of ‘getting one’s money’s worth’ were closely aligned,” Johnston says.

GGA Partners’ research of L.A.-area muni golf courses identified solutions that are available to administrators and operators of muni courses nationwide. While some of these findings fly in the face of conventional wisdom, they bring focus to several important demographic facts that should be considered when putting together a strategic plan and again during the budgeting process.

  • Muni golfers are a mixed socioeconomic bag. Many muni course players are not “belongers” and have little interest in joining a private club. In many cases, they are part of an increasingly mobile workforce and are reluctant to establish roots within a club community because they don’t want financial obligations limiting or influencing their next career move.
  • Muni golfers are not necessarily “cheap” and unwilling to pay for an enjoyable round of golf. In fact, many are like most golfers in that they will pay more for aspects of their round that they feel provide value and enjoyment.
  • Capacity for more golf rounds exists at many muni courses, which gives avid golfers opportunities to play more rounds in less-congested conditions.
  • The fastest growing segments of new golfers – women and kids – have easy access with very little friction, as in no joining fees or monthly dues, when playing at muni golf courses.

The potential for increased revenues when pace of play and course conditions are improved is a business model that deserves careful evaluation in most markets today. We certainly know that golf course superintendents at most municipal facilities could provide improved conditions given an increase in their agronomy and maintenance budgets. But what is the potential in your market for increased participation incremental green fees? The best way to know the answer to that question is to ask your golfers. Their answers might be a pleasant surprise.

This article with authored by Henry DeLozier for Golf Course Industry magazine.

Measure Twice, Cut Once

Experts in the fields of economics, demographics and climatology tell us that recessions, housing booms, population shifts and catastrophic hurricanes are coming. They just don’t know precisely when any of their predictions will come true, exactly where they will occur or who among us will be affected.

Closer to home, in the business of golf course and club management, it’s also likely we will see irrigation system breakdowns, fertilization miscalculations and budget shortfalls. That’s why it’s wise to plan for what may well be the inevitable as well as the unknown.

Warren Buffett once observed, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” In other words, before the benefits come foresight, a plan and action. With the optimism of the new year now beginning to blend with reality, it’s time to make sure we have our most critical plans in place.

Irrigation plans are fundamental building blocks for every golf facility manager concerned about course conditions. Sound irrigation planning ties directly to the standards of excellence that are part of the overarching agronomic plan. Irrigation philosophy, methods and frequency must support and be consistent with the intended turf conditions for the course. Through attentive practices in most jurisdictions, golf has become an even more diligent user of water as many facilities now rely entirely on recycled water. A sound irrigation plan provides for three important factors: matching water consumption to expected results, measuring water consumption to ensure under-usage whenever possible, and seeking new options for further efficiency where sensible.

Rain Bird’s Bryan Stromme encourages managers to establish realistic expectations for what the superintendent wishes to accomplish. Stromme emphasizes that the system infrastructure and the intended outcomes – turf conditions – must be aligned. He adds that “having individual sprinkler control is critical. The faster you can water, the more efficient your system will be for energy and irrigation effectiveness.”

Fertility plans are mission critical for most golf courses considering the high standards of care and upkeep demanded, as well as the advancing requirements of sophisticated hybrid grasses. The first step in developing a fertility plan is to determine the desired level of course conditions and the corresponding turf standard. While there is no “perfect” fertility plan, the key to the planning process is nitrogen supported by phosphorous. The best plan for each facility also prioritizes environmental impacts to the site.

Nick Kearns, director of greens and grounds at The Oaks Club in Osprey, Florida, says he begins with a review of the prior year’s results and executes biannual soil and tissue sampling on each of his two courses. “Our two golf courses react differently,” he says. “The Heron, the Bermudagrass course, requires routine nitrogen applications. When applying we try to use the BMP rule of thumb of a 50 percent slow-release blend. With the Eagle, the paspalum course, we very rarely apply a granular nitrogen product because it can lead to an increase in disease pressure. The products that we apply to the entire course are 99 percent potassium based with minor elements blended in.”

Capital asset plans are a top priority for golf course and turf and facility managers because of life cycle demands and the time required to sequester and reserve needed funding. Craig Johnston, a partner at Global Golf Advisors in Toronto, says, “Clubs with golf courses and sports fields have an enormous appetite for capital.” He points to three key steps for asset replacement planning.

“First, planners must identify every asset that requires replacement, from the water fountain to the irrigation system,” he says. “One should have a depreciation schedule that lists all current fixed assets, the initial cost of the asset and the life of the asset. Start with this list to take a current inventory of your assets.  Make sure that all assets owned by the organization are included on the list and any assets the organization has sold or disposed of are removed from the list.

“Next, establish the replacement dates required for each asset. Use the depreciation schedule to set a target date for replacing each asset.  Finally, identify the financial resources that will pay for the assets that must be replaced. These days that’s often a hybrid of capital dues, capital reserves, short-term debt and capital calls on the membership.”

This article with authored by Henry DeLozier for Golf Course Industry magazine.

Folding Multiple Plans Into One

There’s an old saying about plans – more specifically about the lack of a plan: “Without a plan, any path will get you there.” We wholeheartedly agree with that adage, but acknowledge a flip side that raises a question that many diligent planners confront: How to effectively integrate multiple plans into one comprehensive and cohesive plan that guides your overall operation?

The analogy that comes to mind is the challenge facing airlines with thousands of passengers on any given day, each trying to get to his or her destination. The airline has flight plans for hundreds of aircraft and tries to mesh all of those planes and flights into a fairly seamless plan to get you where you want to go. Most days it works, but not without a lot of coordination.

There are three stumbling blocks that derail effective planning efforts: 1) lack of coordination among stakeholders and contributors, 2) poor scheduling and time management for due diligence and preparing materials, and 3) confused or confusing desired results. These three project killers diminish the quality of the overall plan and undermine the credibility of the planning team.

For golf course and facility leaders, the challenge is considering the information gathered through market analysis, financial evaluation and board input alongside the plans of superintendents and those managing food and beverage, membership and financial operations. And then bringing all the information, insights, recommendations and plans together to support the club’s or facility’s objectives. For managers of each of these functions, the same challenges exist, if only on a smaller scale.

If you’re currently in your planning cycle, and charged with pulling discrete plans and input together so the end product doesn’t feel disjointed, consider these five steps:

1. Sync every plan to the vision.

No matter which area of the club or facility the plan is focused on, it should clearly map to the overall vision – the club or facility’s long-term, forward-looking aspiration, what we like to think of as an organization’s North Star. You should be able to see this in the plan’s objectives and priorities. With multiple workflows, the project leader must maintain an overall understanding of the project and ensure all plans are headed for the same airport, even if they’re taking different runways.

2. Outline specific steps along the way.

Define project milestones, the steps that will help you get there at a predetermined time and those responsible. Schedule regular check-in meetings to make sure all pilots have their planes headed in the same direction. It’s much easier to make mid-course corrections than to wait until all planes have landed and plans submitted.

3. Designate one holding place for project inputs and research.

See that all team members participating in the project planning process have transparent access to information and a full understanding of progress. Lacking a central repository of project information, important pieces of information can be misplaced, overlooked or lost. This also helps projects from getting siloed and managers feeling isolated.

4. Prioritize workflow.

On expansive projects or ones that involve multiple contributors, establish which components are most critical to the overall project plan. This step enables effective planners to allocate time, financial and human resources. Sequential planning guides the team in accomplishing mission-critical tasks and components.

5. Maximize productivity through careful scheduling.

If a golf course superintendent is preparing an agronomic plan, for example, it is important to make sure each assistant and technical expert is scheduled to deliver information in a timely manner. Stagger the timelines, monitor the cross-disciplinary dependencies, and eliminate duplications and redundant production.

Most managers have broad responsibilities and must combine resources to produce comprehensive and workable plans. Developing a disciplined process for research, input and development is the key to successfully landing all of your plans and making sure they support the same vision and goals.

This article was authored by GGA Partner Henry DeLozier for Golf Course Industry Magazine

Walking in the Customer’s Shoes

This article is written and produced by Sue Shapcott, PhD. Sue is the founder of Change Golf Instruction, a golf coaching business that partners with public golf courses, and Sports Query, a consulting business that assists sports organizations incorporate social science into their policies and practices. Sue is based in Madison, WI.


Club staff, including managers and coaching professionals can, over time, become immunized to the customer experience and the various touch points that form it. Guest writer, Sue Shapcott, reveals how clubs should take the time to understand this experience – and why it’s crucial when it comes to attracting women, minorities and families.

Without knowing it, club staff can be reinforcing an experience that is off-putting and unwelcoming to prospective members and (current) minority groups.

In a male-dominated sport such as golf, gender stereotypes play a significant role in shaping and affirming people’s views of a club – particularly women.

Think about it: walking in to see a large group of men congregated at the bar, being greeted with a wall of products for men in the golf shop, clubhouse walls adorned with pictures of men in quintessential golfing attire. All of these cues serve to induce stereotype threat. Stereotype threat, by definition, is the demotivation someone may feel when they identify with a negatively stereotyped social group. The traditional golf environment, unfortunately, is likely to induce stereotype threat in women, children and minorities because it underscores who is, and who isn’t a typical golfer.

As well as inducing stereotype threat, the golf club environment will also impact the sense of belonging women and minority groups experience in traditional golf clubs. Conforming to a club’s traditions means accepting this ecosystem which may feel unfair, unbalanced, and ‘just the way it is (and has always been)’.

But importantly for clubs seeking new members, these groups are making a choice based on their experience at that club. Is this somewhere they visualize spending time (with their family)? Do they want to spend time here? Does it have the potential to become a core part of their life or lifestyle?

If they feel forced to conform, and conforming means signing up to an experience that will not enhance their lifestyle, then, simply put, they will not.

Why does it matter?

Removing stereotype threat experienced by women and minority golfers can be a difficult challenge for many clubs out there. It can mean unpicking a culture which, understandably, takes time.

But allowing the cycle to continue will restrict growth and diversity in your current membership base, as well as your prospective target markets – especially at a time when we know younger generations value family time together. So much so they will base purchasing decisions on how these will enhance their collective lifestyle.

Where to start

Shifting the culture starts by seeing the world through the eyes of women and minority groups.

Accompany existing and prospective members on a customer walkthrough and all of a sudden, things will become more apparent. You’ll quickly see what and why things need to change. For example, does your leadership team look like the face of golf’s past, or future? Does the club have photos that celebrate both men and women players?

Unite all the club staff around this process. Educate them on the prevalence of stereotypes, and their effect. You can then arm staff with the knowledge they need to neutralize the environment. Tackling the issue in unison will ensure that staff are conscious and aware, and there are no gaps in the club’s approach.

What areas can you expect to confront and overcome stereotype threat typically experienced by women and minority golfers? Here are some areas which are common, yet often overlooked:

Marketing – if you market to the spouses of existing members what images and/or videos are you choosing to include? What is that telling them about the club? Chances are, you could be confirming stereotypes without realizing it. It’s not about provisioning certain types of images and videos ‘because it’s the right thing to do’. It’s about doing it because clubs need to understand their influence and not inadvertently confirm certain stereotypes – especially when it will harm their goals in the long run.

Coaching – coaches should make it clear to women that they have a high expectation of their ability and performance (dispelling the stereotype that women are somehow not as strong in their ability).

Clubhouse – a contemporary environment which suits the needs of all members is what clubs should strive for. Remove unnecessary imagery which serves to reaffirm certain stereotypes and make it a place where all profiles of member can enjoy, relax and spend time.

Golf Shop – being greeted by rows of hardware, mainly for men, can be a daunting experience – especially so for women new to the game. Make service your priority, and dispel any fears minority groups may have by handing them the knowledge they need to make informed purchasing decisions.

On the course – tees labelled by gender are extremely commonplace, yet are a constant reminder that women don’t hit the ball as far and that this somehow makes their ability inferior. By changing your tees to difficulty-based rather than gender-based creates more of a level playing field and removes the gender factor and associated stereotype threat.

A rallying call

Change at clubs is always difficult when there’s a threat of alienating a certain group – in this case the core membership. But this is where it’s important to take a step back and assess the fork in the road in which we find ourselves:

Road A: We do the same thing. Members age, member numbers recede, and the cycle of stereotype threat experienced by women and minorities continue.

Road B: We open up, we see our club differently, we remove stereotype threats and create an environment a more diverse range of prospects want to be a part of.

As a stakeholder in this industry, I know which future I would rather be a part of.

 

Connect with Sue Shapcott

Plotting for Budgetary Triumphs

GGA Partner Henry DeLozier offers 5 tips to help golf course superintendents obtain the resources they need to meet expectations.

The budget cycle is complete at most golf facilities for the 2020 calendar year. If your budget was approved and you received the allocation you hoped for, congratulations. But if you feel a lack of funding puts your plan for staffing, course conditioning and maintenance in jeopardy, you might need a different approach to the next budget cycle. Here are five steps to consider when planning your budget.

1. Identify the Gatekeeper.

There is often one person who sets the tone for the next year’s budget. It’s normally the controller or accounting manager; in private clubs, it may be the chair of the finance committee. This person sets the minimum standards for the budget, and he or she must be educated and kept informed regarding your priorities and needs. Research the background experience of the gatekeeper so you understand the perspective from which he or she considers budget requests. Take the time well ahead of the budgeting period to ensure that this key player understands what is needed and the extent to which you have gone to manage costs.

2. Understand the Budgeting Process.

Many golf courses and clubs use different budgeting processes, sequences and schedules for development, planning and decision-making. Make sure you understand the expectations for your role, and then work diligently to exceed them by providing background and support information ahead of schedule. Understand how your club handles budgeting and who the decision-makers are. Meet with them to explain your needs and priorities. Explore and learn their viewpoints concerning your budget needs and how they evaluate your problem-solving. Help them to know how much thought and planning you have given their viewpoints.

3. Plan Ahead of the Process.

Schedule quarterly budget-planning meetings with the gatekeeper and key influencers of your budget submittal. Inform them fully of your needs for the next budget year, answer their questions and demonstrate your commitment to their preferences and needs. Invite them into your operation so they may judge for themselves your organization and methods of management. They need to understand that you are efficient and diligent with the funds for which you are responsible.

4. Organize Your Roster of Priorities.

Knowing the viewpoints of the gatekeeper and influencers involved in your budget helps you prepare your list of your priorities. Be concise in stating your game plan and the rationale behind your requests. Support each proposed budget line item with incremental details for costs per unit of measure and the number of units required. Show all the facts and figures that support your needs. Your objective is to ensure that the gatekeeper understands the due diligence and conscientious approach that went into your request, which will increase their confidence in the validity of your request.

5. Educate the Influencers.

Prepare individualized budget discussions with influencers. Schedule one-on-one meetings with each person who will have a voice in approving your budget. Persuade one influencer at a time until you have met with each of them and gotten their buy-in. See that you understand their viewpoints and biases. Once you fully understand the individuals, evaluate the group thinking to which you must respond.

By understanding the budget influencers’ priorities and then presenting your credentials in an organized and well-researched fashion, you’re well on your way to getting the decision you want and the budget that will help you do your job more effectively.

This article was authored by GGA Partner Henry DeLozier for Golf Course Industry Magazine

Using Technology to Your Operational Advantage

In what ways are clubs realizing operational gains through new technology solutions? GGA’s Martin Tzankov outlines the solutions helping clubs to reduce costs and enhance the playing experience.

Golf and innovation do not always go hand in hand. Attempts to bolt new age technology into a traditional game and well-established club structures have often produced mixed results.

However, this doesn’t prevent club leaders constantly being inundated with new platforms, systems and applications, each with the promise of revolutionizing club operations or the member experience.

To help bring a meaningful commercial focus to this conversation, the following are some new technologies that are taking seed and proving their worth in providing actionable business intelligence, operational gains, and cost savings.

Keeping members moving

As much as we want to allow members to move around the course at their own pace, maximizing their enjoyment and social opportunity, there will often be certain individuals who create discontent through slow play.

While you may, at least anecdotally, know who these individuals are, there is often an absence of cold, hard proof.

This is where GPS-technology comes in. It’s now possible to track individual member movements around the golf course and monitor how long it takes them to play an average round. Armed with this intelligence, club leaders can address this issue and make significant inroads to solving problems around pace of play.

Clearly, there’s a balance and sensitivity to be struck when tackling this topic, and individual circumstances and other variables come into play. For this reason, you may wish to only address individuals who are repeat offenders at peak times of play – in other words, those who impede the experience for other members and guests. In any case, the data you obtain from the GPS-technology will play a fundamental role in overcoming this all too common problem.

Cutting down maintenance

There’s another side to GPS-technology; one which has the potential to unlock major cost savings. By tracking the movements of players, you can quickly establish a picture of where the common ‘pinch points’ or bottle necks lie on the course, areas where players tend to hit and lose balls, or particular hazards they find difficult to overcome.

This data will allow you to work with your superintendent more closely and proactively; looking at the root causes of the problems players face and, indeed, don’t face when navigating the course.

While there are design and maintenance tactics which can help mitigate lengthy ball searches in notorious areas, the real cost savings come from the areas where players tend not to venture…

By determining where these areas lie on the golf course through player tracking data, you can take the decision to reduce inputs and turf management in the knowledge this will not impact the playing experience. The benefits of increased maintenance efficiency to the Club are extensive. Financially, the Club will realize substantial cost savings from a reduction in chemical inputs and by doing so improve the long-term ecosystem of the course environment. From a labor perspective, reducing the managed area of the golf course will free up the workforce to increase its focus on other areas of the course and development projects. Whatever timeline you attach to these changes, the tangible long-term benefits are there and waiting to be realized.

Real-time security and data

A wave of clubs can be found upping their game when it comes to security. We have witnessed clubs installing technology such as retina scanning, geofencing, or keycards and access fobs to know who is at the club and when.

While security is the fundamental motivation behind such a move, the data this presents to clubs can prove invaluable in learning more about member engagement. Yes, there is a time commitment involved in analyzing and extracting some real value from this information, but if it can help you learn more about how some members’ engagement has tailed off, or which facilities or events they are engaging with over others, you can develop tactics to re-engage these members and boost their satisfaction levels.

Take events as an example. You may have a successful, thriving events program but find that a combination of POS and member data reveals that these are only really popular among elder members, while younger members are largely absent. We already know that the injection of younger members into these events is viewed favorably by elder members, and increased socialization will encourage a greater sense of attachment to the Club. So, it makes sense to conduct analysis into younger members’ attitudes, wants and needs from an events program so you can build on its success and make it more inclusive too.

A final thought

When it comes to implementing new technology, my message is this: be open to change. Your club may have established processes or ways of doing things, and it can be uncomfortable when technology threatens to change those. This will result in some clubs shying away when, actually, those that prosper will be accepting of the fact that change is inevitable. Not only that, they will see the opportunity change can bring.

For advice on introducing new technology to your Club, connect with Martin Tzankov.

Inspired by the Masters

There are superintendents who say they dread the first full week of April each year because they know their members are glued to their televisions watching the Masters and wondering why their course isn’t also perfect.

If they needed someone to blame for the condition known as Masters envy, they could look no further than Jim James, the senior director for club and hospitality operations at the Augusta National Golf Club. If they did, they would see someone whose commitment to excellence goes far beyond flora and course conditions.

“We simply try every single day to be the absolute best we can at everything thing we do,” says James, who has been on the job at Augusta National since 1995. “We look at every single day as an opportunity to improve. When we find we are not the best, we are relentless and incredibly focused to make sure that we improve.”

Of course, there also are those superintendents who watch the tournament and find inspiration and challenge amidst the azaleas, dogwoods and meticulously groomed grounds.

It is the attention to detail that inspires Jon Jennings, the superintendent at Shinnecock Hills Golf Club, host of last year’s U.S. Open. “My takeaway each visit is that no matter how inconsequential a detail, they are extremely important for the overall success of the Masters,” he says. “Upon returning home, I try to instill that level of quality with our staff and have them visualize that everything we do in course preparation is important in the grand scheme of things from a player-experience perspective.”

The Masters provides professionals with instructive and insightful examples that guide innovation, brand management and continuous improvement.

Keith Wood, director of greens and grounds at the Quail Hollow Club in Charlotte N.C., is no stranger to big-time golf, having hosted the 2017 PGA Championship. But he recognizes something special when he sees it.

“I learned early on that if there was a week or two to have my greens as good as they could be, I needed to peak around the Masters,” Wood says. “There is nothing better than getting compliments on how your course is playing while everyone is buzzing from the excitement of a great Masters tournament.”

Wood, who is preparing Quail Hollow for the 2021 President’s Cup, says the Masters’ grounds and agronomy team set the bar for tournament golf each season. “I am in awe of the horticulture and the health and beauty of the landscaping they do,” he says. “All shrubs and trees on the property are perfectly placed and maintained. They do a wonderful job of embracing the heritage of being a plant nursery and then take it to the next level with world-class horticulture skills.”

Carlos Arraya, director of grounds and agronomy at historic Bellerive Country Club near St. Louis, finds motivation in the history of the club that has played host to some of golf’s most memorable tournaments.

“The Masters inspires me to communicate and focus on Bellerive’s great traditions and championship history,” says Arraya, who prepared Bellerive for the 2018 PGA Championship. “Even though the Masters is one-of-a-kind, every course has its character and own story.”

The attention to detail and the steady progress on new solutions – from technology to labor deployment – serve as guidance for Arraya’s planning purposes. “The takeaway that resonates in my mind every year while watching the tournament is that a vision accompanied by a strategic plan can produce golfing excellence for the players and patrons,” he says.

While some may dread Masters week for the envy it produces, the great ones welcome golf’s first major as a learning experience. They know that even though they don’t have Augusta National’s budget or staff (more than 2,000 during tournament week), they can make their own commitment to excellence, looking at each day as an opportunity to improve.

This article was written and published by Golf Course Industry Magazine by GGA Partner Henry DeLozier.

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