Effective Beginnings

A good friend says he starts his list of New Year’s resolutions with one word written across the top of a legal pad. The word is “effective,” which is a good choice because it implies results. Results normally require action on our part – and usually not the same things, done the same ways. We need to do things differently and better before we can improve relationships, be more efficient and increase the value we bring to our businesses.

If you hope to be more effective in 2019, here are 10 suggestions.

1. Track your time. Even the busiest and most efficient people waste parts of their day’s most precious resource. The time-stealing culprits are numerous and easily mistaken: idle chit-chat, social media, meetings. Like a sensible diet, each has its place, but moderation is the key. Keep a log for a week to know where every minute was spent. Evaluate how much was spent effectively, in pursuit of goals and objectives. Then repeat the task the next week, keeping in mind the previous week’s wasted time, and compare results. You might be astonished.

2. Measure accomplishments, not effort. It was the Greek philosopher and scientist Aristotle who wrote, “We live in deeds, not years.” It’s worth knowing how long it took you or your staff to accomplish a task or project, but it’s the outcome that is the ultimate measure of our work. Did that 12-hour day you just put in move the needle on a strategic objective? If not, where could your time have been better spent?

3. Stop multi-tasking. People like to brag about juggling multiple tasks and priorities. But time and efficiency experts agree that often these same people are deluding themselves, actually doing twice as much work half as effectively. Focus on one task, complete it and move to your next priority. Effective multi-tasking is called delegating.

4. Get started. If 80 percent of success is showing up (Woody Allen is supposed to have said that), getting started must account for at least another 10 or 15 percent. Knowing where to begin starts with knowing where you want to finish. So, start with one of your goals and work back. Develop a routine that gets you going each day. Whatever works, do it consistently.

5. Dress to impress. Unfair though it may be, people begin forming opinions of others before their first word is spoken. They do it based on an untucked shirttail, an ill-fitting sport coat and the shine on a person’s shoes. Don’t let any of those things negatively influence an opinion.

6. Write simply, clearly and factually. Most everyone is called on to report on programs and results. Maybe you’re making a pitch for a budget increase in your area. All of those things start with putting your thoughts on paper. What and how one writes greatly influences how people respond. Organize your thoughts, express them in short sentences composed of carefully chosen words, without misspellings and typos, and then edit carefully. Before hitting “send” or sealing the envelope, read what you’ve written out loud to yourself or a colleague. If the logic seems jumbled or the words don’t flow easily, take the time to fix it.

7. Read and then read some more. President Harry Truman noted, “Not all readers are leaders, but all leaders are readers.” For many of us, reading to keep up with trends and developments in our field is the last thing we seem to have time to do. If that’s the case, schedule reading time just as you would time for any other task.

8. Improve your workspace. Your workspace is a reflection of your state of mind and organizational abilities. Are golf clubs, coffee cups and boxes scattered about? Or is it purposely organized to help you to focus on your most immediate responsibilities and tasks? Simplify your work-setting by eliminating the clutter and you’ll find it easier to focus on priorities.

9. Establish your own wind-down routine. Be deliberate in finishing your work, just as you were in starting it. Make your priority list for tomorrow as a part of winding down and then leave, knowing there will always be more work to be done and that there’s always tomorrow.

10. Dream big. How else are you going to be really effective?

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

Budgeting 2019

Budgeting for 2019 requires a broader-than-usual alertness to changing times and impacts on golf-oriented businesses. Newfound elasticity on revenue sources, such as dues and fees, will allow many to plan for revenue increases. That’s the good news. More sobering is the fact that most courses and clubs will strain to cover the rapidly accelerating costs of operations.

While it’s helpful to know that costs are rising, budget planners benefit even more from understanding the factors driving cost increases. Here are five cost areas where knowledge of underlying trends and timing will lead to accurate projections.

Labor

The U.S. Department of Labor’s Employment Cost Index notes that wages and salaries for U.S. businesses increased 2.9 percent for the 12-month period ending in June 2018, following a 2.4 percent increase in June 2017. The cost of benefits rose 2.8 percent for the 12-month period ending in June 2018, after increasing 2.2 percent in June 2017. Employer costs for health benefits increased 1.6 percent for the same 12-month period.

Insurance

The costs associated with insuring golf facilities are increasing. Willis Towers Watson’s insurance industry semi-annual report (2018 Insurance Marketplace Realities) projects increases in insured categories more vulnerable to natural catastrophe impacts.

  • Property: Previous-loss history more than doubles premiums in most markets. Clubs located in markets exposed to catastrophic claims will increase as much as three times those of non-exposed clubs, while those clubs with catastrophic experience with losses may see increases from 15 to 20 percent.
  • Casualty: WTW projections indicate that rates for casualty insurance will increase less than 4 percent.
  • Auto Liability: For clubs with automobile insurance premiums, rates are expected to rise from 5 to 9 percent. Ongoing market challenges exist in this space, and two years of steady price increases have not kept pace with loss trends and adverse developments. Rates are expected to rise more steeply.
  • Cyber: Golf clubs are vulnerable to cyber-risk. The WTW study notes a 15-fold increase in two years with claims near $5 billion. Organizations without claims can forecast increase of 5 percent or less.

Healthcare

“Over the past nine years, employee out-of-pocket spending for a family of four increased 69 percent in the form of higher co-pays and higher deductibles, along with 105 percent employee premium contribution growth,” Keith Lemer, CEO of WellNet Healthcare, said in an interview with CNBC earlier this year, noting that over the same period a year earlier employer premium contributions increased 62 percent.” Lemer added, “In 2008 more than 8 percent of a family’s income was spent on health care. In 2015 (last available data) it rose to 12 percent. This means people are making less money today as a direct result of the cost of health care.”

Food

The costs of food consumed at home diverged a few years ago from the costs of food served away from home – in restaurants and clubs. The U.S. Department of Agriculture predicted grocery store price increases from 1 to 2 percent. Food consumed away from home is expected to increase from 2 to 3 percent. For menu planning purposes, be aware that beef and veal are projected to rise 2 to 3 percent, egg prices will increase 4 to 5 percent, while cereal and bakery prices will go up 3 to 4 percent. The USDA expects prices for fats, fruits and vegetables to drop.

Fuel

Large consumers of fuel and oil by-products, including golf courses, will see some relief in fuel-related costs in 2019, according to an August 2018 J.P. Morgan forecast. “While geopolitical tensions and lingering risks of large supply disruptions remain an upside risk, we think that prices will be corrected downwards towards end of the year and remain capped in 2019,” J.P. Morgan analyst Abhishek Deshpande wrote in the note reported by CNBC. This is important for golf where oil prices and those of oil by-products, including fertilizer, have direct budgetary impacts. For budgeting purposes, managers should watch oil futures. One can expect higher gas prices about six weeks after an increase in oil futures.

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

How to Be a Great Board Member

“The most effective private club board members park their personal agendas at the door and work collectively for the betterment of all members.”

GGA Partner Henry DeLozier discusses “Servant Leadership” at the Board level in an article written by Mike Stetz for Golf Inc. Magazine’s March/April 2018 Issue.

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The Keys to Successful Strategic Planning

Research by Global Golf Advisors indicates more than 80% of top performing clubs believe they are working to a strategic plan. But are they?

It is absolutely true 80% of clubs wish to have a strategic plan and truly intend to have a strategic plan, but if the road to hell is paved with good intentions, not all of them do,” says GGA Partner Henry DeLozier.

The reality is that many managers are not clear what a bona fide strategic plan is. They believe that if they have a capital asset roster or have developed a master facilities plan they are well on their way to developing a full strategic plan, which is not accurate.

So what is a strategic plan and what happens when clubs successfully implement strategy?

In this video, Henry DeLozier explains Global Golf Advisors’ five key elements of an effective strategic plan and why a focus on implementation and performance monitoring frequently leads to success and an increase in club membership.

https://youtu.be/vQSzlpXGcm4

For more insights on successful strategic planning, download the GGA whitepaper ‘Strategic Planning: A Road Map to Club Survival and Success.’

State of the Industry 2018: GGA Optimistic on Golf’s Future

GGA Partner and Principal Henry DeLozier was asked to weigh in on the future of golf as part of Golf Course Industry Magazine’s annual state of the industry piece, titled this year “State of the Industry 2018: The Great Reinvestment“.

Despite the industry’s cuts, closures, and tumbles, DeLozier and Global Golf Advisors remain optimistic about the future of golf and its career potential, “We are in a bull market. The stock market is frequently setting records that have never been imagined before. The growing economy is causing everyone to feel more positive and more optimistic, it’s causing more membership, more participation. The downside of that is that with the unemployment figure down, it’s harder to find labor and, therefore, you have to pay them more. We’re seeing both sides of that.

According to DeLozier, 2018 presents both opportunities and challenges for golf:

  • Development – “I think 2018 is going to be a great year for golf course architects and builders.
  • Reinvestment – “Competitive desires spur enhancements among the top 25 percent of clubs.
  • Accessibility – “The industry can grow without expanding its customer base because mobile jobs that can be performed anywhere, including on a golf course, shrink the separation between work and recreation.
  • Wage Increases – “I think labor costs are going to [increase decidedly] up 6 to 7 percent in the golf business – and that’s if you can get workers.

Learn the context of these excerpts and more in the full article available at Golf Course Industry Magazine.

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

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