Tag: future

Know Your NPS to Build Brand Loyalty & Member Referrals

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In our work with clients across the globe, our research reveals that member referrals are the most important means of generating a steady stream of new prospects, which is probably not surprising.  After all, the cost is nominal and you can be assured that members are going to invite prospects with a shared passion for the lifestyle provided by your club.

The most effective method to gain member referrals is to ask for them. But before you do, it is critical to understand your NPS – or Net Promoter Score – to determine the response you will receive.

NPS is an extremely valuable market research metric that is widely used across industries and can be leveraged to measure customer perceptions of a brand and estimate future growth, as evidenced by the potential for repurchase or referral to other consumers.

NPS Is Not the Same as Member Satisfaction

Member NPS is not the same as your members’ overall satisfaction with their club experience.  NPS asks about the likelihood of recommending or referring the club to others while overall satisfaction asks about contentment with their experience.

In short, NPS is future-looking and overall satisfaction is backward-facing.

NPS Is Simple to Implement

NPS, originally a proprietary instrument used by Bain & Company, is now used by two-thirds of the Fortune 1000 companies as a basic measurement of customer sentiment.

The popularity and broad use of NPS is often attributed to its simplicity and transparency of use.  It is a survey question which asks, “How likely are you to recommend [brand, product, service, company, or organization] to a friend or associate?” The question is designed to provide responses which are easy to interpret and track over time in trend analysis.

NPS generates valuable customer insights and is typically used and interpreted as an indicator of customer loyalty.  This information is invaluable for business and community leaders who are responsible for measuring and managing revenue retention, customer retention, new business growth, or overall consumer satisfaction.

Despite the ubiquity of NPS among leading companies in major industries, the adoption and consistent application of this metric within the club industry remains limited.

A recent GGA Partners research survey of more than 500 club leaders (A Club Leader’s Perspective: Emerging Trends & Challenges) found that just 14% of clubs track member NPS in their surveys.  Among clubs that employ this metric, the average NPS is +64.  Additional feedback from the survey found that one-third of clubs reported an increase in their NPS during the pandemic, a positive statistic for future member growth.

Calculating Your NPS

The NPS question is asked on a scale ranging from 0 to 10, with 0 representing “Not at all likely” and 10 representing “Extremely likely”.  Based on the number selected, respondents are subdivided into one of three categories: those with ratings of 9 or 10 are classified as “Promoters”, those with ratings of 7 or 8 are marked as “Passives”, and those with ratings of 6 or less are categorized as “Detractors”.

The actual “score” is calculated by subtracting the portion of detractors from the portion of promoters without factoring in the portion of passives.  True NPS is always shown as an integer and not a percentage and, with the net score falling within a scale ranging from -100 to +100, it is possible to have a negative NPS.

Keys To Developing & Tracking Your NPS

1. Keep the NPS question consistent – Avoid altering the question (“How likely are you to recommend [your club] to a friend or associate?”) or the answer range (from 0 = “Not at all likely” to 10 = “Extremely likely”) as it will impact the validity and reliability of the data.

2. Ask for NPS alongside a handful of supporting questions – NPS is most valuable when supported by other overarching questions which generate datapoints on overall satisfaction, perceived value-for-money, and demographic questions (to stratify responses and dive deep into feedback by membership subsets).

3. Keep it brief – A survey with these three questions (NPS, overall satisfaction, value-for-money) and four or five demographic questions should take about 3-4 minutes for respondents to complete. Shorter is better for these types of surveys.

4. Measure NPS routinely – At a minimum, your NPS metrics should be tracked and updated annually to identify changes in the sentiments of your members. Whether they are rising or falling, understanding the factors impacting changes in your trend line will provide valuable insight into areas where the club is excelling as well as areas that need improvement.

If your club aims to be truly attentive to overall satisfaction, member loyalty, member and customer retention, or using member referrals to support membership growth, leaders of the club should be monitoring NPS as a matter of routine.  If this acronym isn’t surfacing in boardroom discussions, it should be.

While no one can predict the future, a clear understanding of your NPS will provide a data-driven indication of members’ loyalty to your club’s brand and the success you will have when asking your members for referrals.

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.

What Does Golf’s Green Future Mean for You?

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As environmental consciousness continues to rise across the world, GGA Partner and Chairman of the Board of Directors for Audubon International, Henry DeLozier, identifies the three starting points for clubs looking to make the shift towards a greener future.

Americans are more concerned about climate change than ever before. According to a recent Pew Research Center Survey, “About two-thirds of U.S. adults (67%) say the federal government is doing too little to reduce the effects of climate change, and similar shares say the same about government efforts to protect air (67%) and water quality (68%)…”

The study also found that concern over the state of the environment is more than a national interest or partisan issue, with the majority indicating that climate change is affecting their daily lives, “Most Americans today (62%) say that climate change is affecting their local community either a great deal or some.”

Does the same sentiment exist in golf?  Since 2017, managers have reported to GGA that their clubs are under the microscope in some areas, receiving provocation from local municipalities and increased pressure to comply with local rules and environmental regulations.  These pressures have led to the need for clubs to increase their ‘green’ efforts in education, labor and training inputs, as well as governmental reporting.

Whether it’s a case of compliance or the desire to develop a greater sense of environmental stewardship and eco-friendly operations, it can often be difficult to know how and where to start. To ease this process, here are three starting points for clubs looking to make the shift towards a greener future.

1. Assess current levels of resource utilization

Understanding how much your club is using, in what areas, from which sources, and at what price is an essential first step.

This will allow you to develop a baseline for evaluation, and measure these against performance goals.

In need of a helping hand to get started? A number of associations and organizations have developed intuitive and informed tools to enable clubs to conduct these evaluations in-house.

  • GCSAA’s BMP Planning Guide and Template is an online resource that provides for the development of golf course BMP programs at the state level. Based on a high-potential impact on operation of your facility and its bottom line, GCSAA recommends attention to performance goals in four distinct areas: water conservation, water quality protection, pollution prevention, and energy conservation.
  • Audubon International, which promotes sustainability for businesses, recreational properties and communities, has developed Standard Environmental Management Practices that are generally applicable to all golf courses. These standards form the basis for the Audubon Cooperative Sanctuary Program (ACSP) for golf certification guidelines which include habitat planning and management guidance, while increasing the understanding of best management practices for pesticide use.

2. Develop an environmental policy.

“Putting your golf course, community or resort on the path to sustainability may seem overwhelming, but it doesn’t have to be,” Audubon International CEO Christine Kane says. “We suggest starting by establishing an environmental policy that will guide your operations. This will bring your employees and members onboard and pave the way for incorporating topics such as water conservation, IPM or wildlife management into your budget, marketing and maintenance processes.”

3. Seek a certification program and pursue recognition.

Establishing a reputation for environmental stewardship in the public eye – that is, from the viewpoint of your current and potential future members – is a valuable business marketing tool for clubs to wield.  Pursuing formal recognition and certification for the club’s commitment to “green” operating practices can grow its market share and build loyalty among the power-spending generations of the future.

If your club is looking to bolster its environmental credentials, here are some awards and programs to consider:

  • Audubon launched its Water & Sustainability Innovation Award this year to recognize landscape companies, organizations, and municipalities for sustainable, water-efficient projects. Corica Park South Course of Alameda, California, and its management firm, Greenway Golf, was the first recipient.
  • ACSP for Golf provides a tangible form of recognition for clubs and courses committed to protecting the environment and preserving the natural heritage of the game.
  • Monarchs in the Rough is a program that partners with golf courses to combat the population decline of the monarch butterfly and to restore pollinator habitat in out-of-play areas.
  • The Green Restaurant Association is an international nonprofit organization encouraging restaurants to ‘green’ their operations using science-based certification standards in order to become more sustainable in energy, water, waste, food, chemicals, disposables, and building.

Golf facilities and clubs also benefit from sustainability’s halo effect.  Many members today expect greater levels of environmental stewardship from businesses and other organizations with which they are associated.  In addition to its environmental impacts, sound resource management and recognition through certification has taken on a good-for-business shine as well.

Research points out that sound environmental stewardship matters to women and millennials especially.  While sentiments diverge along lines of on geographic location and political affiliation, it is apparent in the Pew Research study that women and young adults (e.g. Millennials and Generation Z) exhibit a higher propensity to regard climate change as a serious issue which affects them personally.

The bottom line is that that these groups represent the next generation of members and they are both concerned about sound environmental practices and are receptive to learning how club managers are caring for Mother Earth. Clubs and courses seeking to attract younger members would do well to take a responsible approach to environmentalism.

Walking in the Customer’s Shoes

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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

Make Time for Strategic Thinking

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Do executives at your club know what a strategic plan really is?

Club executives often confuse a strategic plan with a master plan, a capital expense budget or standard operating procedures when in fact it is none of those things.

“A strategic plan is an all-encompassing game plan. It is a plan of action designed to achieve a particular goal. It is a tight, clear-cut statement of what it is your club is trying to do,” explained Henry DeLozier of Global Golf Advisors during a seminar for club managers earlier this spring. “It’s a crucial document because every club needs to know where it is going.”

Strategic planning is receiving more focus in private clubs now than in the past. DeLozier believes this is due to the fact that more is expected of club leaders now (and more of leaders in general). He also says that clubs are expected to function in a more businesslike setting. Oversupplied, competitive markets require more focus and different types of clubs use different models of strategic planning. That’s why strategic planning is more important now than ever before.

The strategic plan should answer the questions what and why. It should not answer when, who or how because the answers to those questions are tactical. To keep strategy and tactics separate, DeLozier urges executives to remember the following:

Strategy = What. A primary duty of the board is to develop the strategy for the future of the club in a three to five-year life cycle. “Strategy is doing the right things for the club and its members. It is conceptually planning what the club will do and why,” he explained.

Tactics = How. This is a primary duty of management. Tactics are about executing the strategy and doing things right for the current period of time.

DeLozier urges all club executives to block off time regularly to think strategically. “Find the time to collect, study and share information. Strategy is part of a leader’s job today. Encourage strategic thinking in such a way that it becomes cultural at your club,” he concluded.

This article was authored by GGA Partner Henry DeLozier for the Private Club Advisor.

Substance Over Style

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In the old west, big talkers who didn’t deliver on what they promised were described as “All hat and no cattle.” Simply put: more image than substance.

None of us wants to be thought of in those terms. We all want to deliver the goods as promised. Doing so, while often challenging, is more achievable when you take these important steps:

1. Develop your strategic plan carefully because that’s where you lay out your promises in the form of goals and objectives. Stephen Johnston, the founder of Global Golf Advisors, often explains the importance of strategic planning by saying, “The lack of a strategic plan is not as dangerous as not having fire insurance, but it’s certainly playing with fire.”

The key components of a sound strategic plan are: (a) market analysis; (b) operational review and comparison against performance benchmarks; (c) financial measurement — especially of the sources and uses of funds; and (d) clear-eyed evaluation of governance practices. These four components assure that you have a plan that states clearly your goals and objectives and establishes a broad understanding of expectations.

Remember that an effective strategic plan answers the question: What? The business plan provides the details behind How? When? Who? and Where? The tactical plan outlines the steps that will implement the strategy.

2. Put your strategy to work. Strategy is only as good as the execution that backs it up. Putting strategic goals and objectives into action also requires a plan — one that describes in detail how you and your team will achieve the goals and objectives of the strategic plan.

3. Make sure club leaders and managers understand the plan and how their functional areas are expected to contribute to its success. In 1962, President Kennedy declared, “We will put a man on the Moon in this decade and return him safely to Earth.” Shortly thereafter, while on a tour of the NASA Space Center, the president came upon a janitor mopping the floor. When asked by the President about his job, the janitor responded, “Mr. Kennedy, I am part of the team that is going to put a man on the Moon.” That is plan buy-in and real-life awareness. The lesson: Make believers of your staff.

4. Review your plan’s success. No matter how well-intended a plan might be, careful evaluation and follow-up ensure that the plan remains relevant and purposeful. Another benefit of ongoing evaluation is evolutionary improvement and maximized understanding. Here are three steps to ensure that your plan is working at full capacity:

  • Provide quarterly strategic plan updates. Report your accomplishments and missteps with equal openness. Quarterly updates keep strategy alive in the boardroom and assure members that their board and club management are keeping their promises. Members support trustworthy leadership and trust is built on accountability in your actions.
  • Post a strategic scorecard. After the quarterly update, post the results truthfully and without acclaim. No different that posting your golf score, this is a matter of open accountability for performance. Embrace accountability for your strategic plan’s effectiveness.
  • Produce an annual report. Tell your members what has been accomplished. Align the annual report, as any major corporation would, with the strategic goals and objectives for your business and report on progress toward those goals. Provide members and stakeholders with a succinct summary of the strategic effectiveness of your plan, your board and yourself.

Strategic plans are based on the notion of having a focused plan of action on which all can rely. This step helps to make you and your work more trusted while bringing focus to what makes your facility successful.

One of the more common concerns in many golf courses and clubs is the question of vision or what it really wants to be. A carefully developed strategic plan clearly states who and what you are and establishes a trustworthy foundation for achievements. It shows people that you’re more than just a hat – it’s evidence that you’re bringing the beef.

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

The Club for Millennials

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On the back of GGA’s largest piece of millennial research to date, Michael Gregory answers your questions, revealing how the findings paint a clear picture of who clubs need to target in order to build the next generation of members and customers.

For 3 years GGA and Nextgengolf have analyzed the behavior and attitudes of golfing millennials. Armed with the findings of this research, GGA have engaged with clubs and resorts on how to connect with this audience. Unfortunately, for many clubs, this generation still proves elusive. However, with the latest round of research now complete, we have the clearest ever picture of the untapped potential of millennials.

Below is a selection of questions that have been posed to me in recent months from managers and board members across North America. The answers may help you dispel millennial myths, consider your club’s actions in appealing to this generation, and, in some small way, future-proof the core of your membership.

What do you know now that you didn’t know before about millennials?

This centers around 3 areas: the trigger point for deciding to join a private club, the influence of family in decision-making, and interest in non-golf amenities.

Trigger point: 72% of millennials move to private club membership as the result of a new job or promotion, making way for more disposable income and leisure dollars.

We already know millennials are a highly cost-conscious group. However, an event relating to their work status which sees them earning more is the most powerful trigger point or motivation for them to decide to join a private club. When does this happen? Last year’s research indicated the ‘sweet spot’ for joining a private club was 33 years of age, and this remains the case.

Family: findings suggest a millennial audience is highly influenced by benefits for the whole family and gaining spousal approval when joining.

Millennials increasingly assess the value of club membership not just in individual terms, but in how their loved ones will benefit too. If club membership becomes a gateway to spending more time with those close to them, this will be key to influencing their decision to join.

Non-golf amenities: interest in non-golf amenities is on the increase, with 76% of respondents stating a desire for fitness pursuits and 71% looking for pool facilities.

This increased desire for non-golfing amenities is significant. More and more, millennials are viewing the value proposition offered by private club membership as a lifestyle choice. They may well have gym or health club memberships elsewhere, but if a private club offers those facilities too along with its numerous other attributes, it is more effectively positioned to win out in the millennial mind.

Do I need to create a millennial membership or reduce the cost of membership to appeal to this group?

2019’s findings reaffirm the issue of cost for millennials. Both dues and initiation fees continue to be barriers, and it is a reality that clubs will need to compete on price to appeal to this group (how much depends on the club’s location and market position).

But there’s also a bigger picture at play. While price is (and likely always will be) important, the best performing clubs are focused on creating an experience that enhances millennials lifestyles and develops a sense of emotional connection and belonging. An experience that also enhances the lifestyles of their family strengthens this connection, elevates the value proposition and paves the way for greater price elasticity.

Are there clubs out there who are successful in attracting and retaining millennial members? What can I learn from them?

Most definitely. We’re witnessing clubs roll out a number of effective initiatives to attract and integrate millennial members.

My advice?

  • Welcome millennials into the governance structure. They want a voice and the overall membership benefits from fresh, younger ideas at the committee level.
  • Encourage them to get involved with events. Some older members may be reluctant at first, but, actually, most will love the injection of youth into events.
  • Find ways to get the family involved, even if you only offer golf. Socialization is key, as is spousal approval. Need some inspiration?
    • Offer periodic child care (for a fee) so couples can enjoy time together at the club
    • Host live music outdoors where young couples can socialize
    • Increase service levels when spouses are on property (call them by name, remember their drink, be ready for them)

Any interesting developments or emerging trends from this year’s findings?

We know that millennials are a time-strapped generation. Between work and family life they don’t have a great deal of time left to dedicate to leisure interests. It’s for that reason, in recent years, we’ve witnessed the convergence of leisure and family, with more and more clubs becoming family-friendly and a place for families to spend time together.

Now, we’re starting to see work come into the equation, which is no great surprise as 74% of respondents stated work commitments prevent them from playing more. Clubs are capitalizing on the trend by creating an environment that makes the transition from work to golf and club easier. This could involve investing in modern business facilities with shared workstations, calling booths and private meeting rooms to accommodate their needs.

As there appears to be no letup in time pressures on this generation, we’d expect to see an increasingly closer union between work, family and leisure time.

 

Is your club in need of a shift in focus to appeal to a wider and younger audience of prospective members?

Connect with Michael Gregory to see how GGA’s expertise and insights
in this area can help your club.

Useful links:

Millennial Golf Industry Survey 2019
The Truth About Millennial Golfers 2018
The Truth About Millennial Golfers 2017

Embedding a Culture of Progression and Longevity Among Board Members

Date:

Each new set of Board members are faced with the same conundrum: the desire to achieve things and make a difference, but only a limited term with which to do it. The answer to this issue, is to instill a sense of mission and to focus the attention of Board members on longer term issues. GGA’s Rob Hill delivers the key insights.

Formulate a proper orientation

Every board, just like a club, has its own culture which is defined by its traditions and practices, and every new board member deserves a focused introduction to this culture if they are to be expected to adapt and contribute from the outset of their term.

Orientations vary greatly, but no matter the approach, they offer an extraordinary opportunity to focus new and existing members on the club’s vision, mission and the long-term strategic business priorities of the board.

It’s also the ideal environment to emphasize the progress made by the club and immediate actions to be undertaken, both of which underline the responsibility the board holds: to advance a plan, to make meaningful progress, and for this be aligned to an overarching strategy so that there is continuity of effort.

This sense of collective effort – of accountability, of building on the work of others, of advancing a plan closer to its successful conclusion ­– is often inspiring for new board members.

Focus on the future

Clubs traditionally start meetings with minutes and committee reports that contain minutiae and operational items that are reflective of what has already happened, but ideally a Board should be focused on strategy (the future) and policy.

Everyone (Boards and GM’s) would rather spend their time on the concrete things and events that they can touch and feel, rather than the conceptual – strategy and planning.

You have to challenge these instincts using a “Consent Agenda”. Effectively, the Hon Sec and Club Manager should carefully plan not only the details of the agenda, but, crucially, the order too, in order to keep strategy at the forefront of Board business.

It takes several meetings and a commitment up front, but over time it helps to shift the emphasis toward the future.

Face resistance with facts

Should a Board successfully navigate the strategic planning process and adopt a long-term plan, it should not make the mistake in thinking that the hard work is over, or that all of its future members will support it without question.

It is common for plans to be questioned and tested. After all, if Board Members are to be tasked with the implementation of a plan, it is only right that they can challenge elements they doubt. Board governance is most successful when Members ask the right questions, put forth new ideas and challenges, and continually refresh and renew the Club’s goals.

Where a Board Member is strongly resistant to elements or the entirety of a strategic plan, this is often the result of either: a belief or conviction based on their experience, or a feeling that a plan only serves as a straitjacket which prevents them from imposing their own will on the Club.

In such an instance it is important that facts are established. That way, any questions of validity or appropriateness are based on evidence rather than purely belief or emotion. Board Members can passionately state a personal position in opposition to components of a plan, but they should be expected to support their positions with facts.

Foster a shared vision

 A strategic plan is certainly a powerful tool for facilitating continuity of tenure. However, it should never be considered a silver bullet. A strategic plan, no matter how good it is, will not cure all ills.

Long-term success requires alignment of the entire club. Only when the board, executive leadership, committees, members and staff are fully aligned behind a shared vision, when you consistently communicate your successes and progress, when the entire club believes in and sees the positive impact of strategy does real momentum build. Indeed, over time, this becomes integral to the fabric of the club’s culture. It becomes a habit.

Key takeaways

  1. A Board orientation is a powerful tool for maintaining continuity and momentum. It is a matter of educating volunteer leaders on the mechanics of the Club, the responsibilities they have toward it, how the Board functions, and, importantly, the strategic goals and actions toward which the Board is working.
  2. It takes determined and committed leadership to keep a Board focused on the Club’s future rather than obsessing on the past. Tools such as a consent agenda can support this focus, as will enlisting the strategic action plan as the central focus of each Board meeting.
  3. Successful plans are built on intelligence and facts. This not only makes them more likely to succeed, but will protect them from those who are resistant to change.

This article was authored by GGA Partner Rob Hill.

Who’s Your Innovator?

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If you’re to succeed in driving change at your club, you need a champion of innovation – the person who makes things happen. But what if that person doesn’t exist? GGA’s Bennett DeLozier advises on what an innovator looks like, and how to move forward if you don’t have one.

The Importance of Innovation as a Change Catalyst

Last fall GGA reported its preliminary findings from a survey of roughly 400 club managers who were asked to weigh in on the topic of innovation. Feedback from participants, all of whom are members of CMAA, placed emphasis on two key themes: first, that innovation is crucial for the future of club management and, second, that clubs need to improve when it comes to innovation.

Despite overwhelming majority agreement on the importance of innovation, a closer look at survey findings shows a stark contrast between theory and practice.

Research revealed that even managers who believe innovation is essential to the long-term success of their clubs do not regard themselves as particularly innovative. They believe the club industry lags behind other sectors when it comes to change. They say they would like to catch up in the areas of marketing, communications, technology, food & beverage, and strategy, but report they are hampered by resource constraints, cultural opposition, and a lack of effective infrastructure. Even many clubs that do prioritize and pursue innovation are operating without a deliberate strategy.

To translate ingenuity into business strategy, managers believe that a broader cultural endorsement is needed within their clubs to support, enable, and nurture innovation. However, affecting cultural change from the top down, with reliable bottom-up support, is no easy task.

Queue “the innovator”: the champion of change, the person who can make things happen by putting theory into practice to achieve positive outcomes. Who might this person be and what does their skillset look like?

And, importantly, what do we do if we can’t find them?

The Mark of the Innovator

To be effective in driving change requires tremendous leadership, so our innovator must first have the character of a leader. This is a person who also possesses the uncanny ability to see unseen opportunity, the right balance of knowledge and charisma, an adeptness at bringing people together to work toward a common goal, and an aptitude for putting plans into action and getting the job done.

This person is a synthesis of four key archetypes:

1. The Visionary – A person with the ability to discover opportunities and inspire others to pursue them. One who can see the possibility in a given context and hone in on the most important insights in order to identify unmet needs and valuable problems to solve. They develop meaningful solutions to address significant club problems. Further, they have the capability to explain the nuances of the value proposition, and can motivate key decisionmakers to agree that an innovation initiative is worth pursuing.

2. The Collaborator – A person who can manage change by stimulating effective teamwork and bringing cohesion to the group. A charismatic and daring leader, this person can encourage action through trial-and-error by creating an environment that is conducive to change and views failure as a necessary and educational part of the innovative process. They are a skilled networker and an effective communicator who can muster the necessary resources to get the job done while keeping everyone on the same page.

3. The Thinker – A person who is a natural learner with a deep curiosity about any ideas, products, technologies, concepts, or approaches which could increase the chances that their undertaking will succeed. This individual is willing to explore opportunities as they present themselves, continually pursues new ideas and quickly integrates learnings from multiple sources of information.

4. The Executor – A person with the ability to ensure that rubber meets the road. One who can make quick decisions amidst uncertainty while maintaining realistic progress towards the targeted goal. This individual can translate ideas into an achievable sequence of activities and is often the first to shake things up and challenge the status quo. They can persevere through setbacks and readily adapt plans to new conditions, variables, or requirements.

Help Wanted: Club Innovator

Armed with an understanding of the traits which drive the most successful innovators, club leaders can begin to seek out their champion of change.

Where will they find “the innovator”? Do they exist?

Naturally, it may be tempting for clubs that are hoping to deliver on important initiatives to seek out a talented individual with a track record of high-performance and success. However, it is exceedingly rare that one person will possess the full range of skills needed to innovate successfully. Innovation requires skills and mindsets that are often underdeveloped even among the highest performers.

Rather, clubs should reframe their search for “the innovator” from an individual to a team. A carefully constructed and well-balanced team that brings together the various innovative traits and personalities can compensate for the rarity of a “true innovator”.

Innovating for the Future

Adopting a team-based approach to innovation will increase the likelihood of sourcing the necessary talent, as well as the likelihood that innovation initiatives will succeed.

Returning to the survey findings, the top three challenges which club managers say inhibit, deter, or prevent innovation are: (1) resource constraints such as budget time, space, people; (2) social or cultural opposition to change or new ideas; and (3) lack of structured innovation processes or procedures. These deterrents are often bigger than any one individual’s performance capabilities, and reinforce the need for an innovator group.

The top three ingredients which managers identify as important for innovation are: (1) the right culture to foster and support innovation; (2) a willingness to change norms and take risks; and (3) strong visionary business leadership. These elements add up to a culture of strategic thinking. This type of club culture encourages new ideas, supports experimentation, solicits group input, and is characterized by undaunted, resourceful leadership who are willing to take calculated risks with the support of others.

Understanding the traits of the innovator and the need for teams to have a balanced composition of these traits can help clubs become better and faster innovators. By identifying and encouraging people within the club who possess these skills, then steering them into supervisory roles where they can put these skills to work and also learn from each other, clubs can begin to build an academy of innovation leaders who will continue to drive positive change into the future.

This article was authored by GGA Manager Bennett DeLozier.

Manager Views on Innovation

Date:

Generating growth through culture change is the goal of the Innovation Labs initiative.

Discussions about business, society, the economy or technology invariably include the word “innovation,” which implies a pursuit of inventiveness or change. The word also appears in conversations about golf culture or the club industry, though typically in a negative context or when referring to a lack of change.

By nature, clubs embrace and value tradition. That’s one of the things that defines them as clubs. They are organizations dedicated to a particular interest, activity or lifestyle. However, a culture of tradition does not prevent a club from pursuing change.

Investigating innovation

In recent years, club managers, club members, developers and businesses that serve the industry have used the word “innovation” more frequently. But it’s unclear what innovation looks like for clubs. We see various industries targeting clubs with innovations: Manufacturers are making equipment stronger, lighter and more powerful; agronomic experts are growing turf that is cleaner, greener and more sustainable; technology focused fi rms are developing ways to make golf more accessible and less time-consuming.

As part of its commitment to continually provide forward-looking ideas and advanced education to club managers, CMAA identified innovation as a key research topic for 2018. At Global Golf Advisors (GGA), the goal is to leverage adaptation, transformation, growth and efficiency to maximize the performance of clubs — and innovation is always on the table.

Key objectives for both CMAA and GGA have always been to help clubs optimize their performance and maximize financial, operational and lifestyle related results for club leaders and their members. Earlier this year, CMAA announced the renewal of its business partnership with GGA, a multiyear commitment of cooperation to enhance CMAA’s research initiative using GGA’s business intelligence services and to co-create Innovation Labs to promote and inspire innovation by clubs. The Innovation Labs will explore new ways to help clubs move ahead faster.

Typical research projects analyze past results and projected outcomes. Research on innovation, however, is forward-looking and requires new ideas, new methods and change. Still, successful innovations are difficult to quantify and involve significant risk.

To minimize risk and create reliable, replicable and successful methodologies, GGA and CMAA have established a joint task force that will identify, measure and field-test ideas that have the greatest potential for innovation in club management.

Establishing baselines

This case-based approach to innovation began with a yearlong research project involving clubs that are reimagining the way they operate. The first phase of the three-phase project was to study the relationship between clubs and innovation by talking to the individuals who know clubs better than anyone: club managers.

This effort was launched in advance of the 91st CMAA World Conference on Club Management and Club Business Expo in San Francisco. CMAA members took a 10-minute survey designed to gather managers’ thoughts on innovation, identify research opportunities and assess latent demand for innovation within clubs. The nearly 400 CMAA members who participated represented more than eight types of clubs, and more than 150 individuals volunteered their clubs to contribute to additional research.

Results from the preliminary survey confirmed that innovation is crucial for the future of club management. According to the survey, approximately 95 percent of club managers regard innovation as “important” or “very important” to the long-term success and sustainability of clubs.

Club managers also believe clubs need to improve when it comes to innovation. Managers do not necessarily regard their clubs as innovative. Less than two-thirds (63 percent) described their club in that way. And when asked to quantify the extent of their innovativeness, only 40 percent of managers rated their club as “innovative” or “extremely innovative.”

Participants also rated the extent to which they believe clubs are keeping pace with innovative practices in other industries. Ninety-two percent rated that pace as being between “slightly below average” and “slightly above average.”

The top three challenges that inhibit innovation were determined to be: (1) limited resources such as money, time, space and people; (2) social or cultural opposition to change; and (3) a lack of structured innovation processes or procedures.

Using the right tools

What fuels the engine of innovation? What is required to innovate? Survey feedback identified three keys to innovation: (1) a culture that fosters and supports innovation; (2) willingness to change norms and take risks; and (3) strong visionary business leadership.

Club managers said one of the most important ingredients for innovation is a culture of strategic thinking. This encourages new ideas, supports experimentation, solicits group input and is characterized by fearless, resourceful leaders willing to take calculated risks.

While managers are divided on whether innovation is a priority for their clubs (55 percent said yes; 45 percent said no), it is clear that those who focus on innovation are seeing results. Among managers who indicated that innovation is a primary focus, 91 percent said their clubs seek opportunities to innovate and 90 percent said their focus on innovation gives them a competitive advantage. One caveat: Only 27 percent of clubs that focus on innovation have a clear, well-defined innovation strategy.

Even managers who believe innovation is essential to the long-term success of their clubs do not regard themselves as particularly innovative. They believe the club industry lags behind other sectors when it comes to change. They say they would like to catch up in the areas of marketing, communications, technology, food & beverage and strategy, but they say they are hampered by resource constraints, cultural opposition and a lack of effective infrastructure. Even many clubs that do prioritize and pursue innovation are operating without a deliberate plan of action.

To translate ingenuity into business strategy, managers believe that a broader cultural endorsement is needed within their clubs to support, enable and nurture innovation. Affecting cultural change from the top down, with reliable bottom-up support, is not easy. Clear policies and programs are essential.

The results of this preliminary survey have helped guide the development of GGA/CMAA research and the new Innovation Labs initiative. They will be circulated in a detailed, full report later this year. Stay tuned for more details on ideas, insights and experiments to be generated by the Innovation Labs during the coming year.

GGA’s Bennett DeLozier penned this article for Club Management Magazine, published by the Club Management Association of America.

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