Tag: goals

Budgeting Must Go On

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In the wake of COVID-19 business must go on, so too must budgets be developed and approved to give clubs and their managers a roadmap for next year’s operations. Here are five important steps to consider when preparing your 2021 budget. This article was authored by Henry DeLozier for Golf Course Industry magazine.

Budget preparation, even with its strict adherence to unvarnished numbers, is always an inexact and fluid exercise. It’s an amalgam of recent and projected performance in the context of long-range and short-term goals and objectives, all of which could be influenced by internal factions guided by self-interest. And that’s in the best and most predictable of times. Not exactly what budget preparers at clubs are currently facing.

In the wake of COVID-19, if you ask managers, directors and owners to forecast how their club will perform next year, you’re likely to get a range of answers, including what may be the most honest: “I haven’t the foggiest idea.” But as business must go on, so must budgets be developed and approved to give clubs and their managers a roadmap for next year’s operations.

How do you plan for the unknown? Here are five important steps to consider when preparing your 2021 budget:

1. Rely on a sound agronomic plan.

Savvy superintendents use their agronomic plans as a pilot uses a flight plan. The agronomic plan includes the superintendent’s clearly stated outcomes or objectives (destination) along with clearly defined processes, systems and procedures (altitude, speed and course).

The contents of a thorough agronomic plan include goals and objectives, a staffing plan and organization of management, fertility, arboreal and irrigation plans, and line-item budget analysis and descriptions of the financial components of the plan.

Describe the results you intend to achieve. Your plan paints a vivid picture of what you believe is possible and what results will be contingent on factors beyond your control.

2. Review the budget with your accounting manager.

Making sure your accounting manager fully understands the agronomic plan and gaining his or her support for your plans and how you intend to achieve them is essential to a successful budget any year. But current circumstances that may limit resources, disrupt supply chains and affect how your team operates on a day-to-day basis make this understanding and support even more critical.

Mix in members’ expectations for course conditions and there is every reason to think your 2021 budget will require more specific collaboration than most golf course maintenance budgets normally receive. Your accounting department allies are critical to a successful agronomic plan and its approval.

3. Use a decision tree to clarify options.

When faced with challenging problems in an environment where the unknown competes with the known, many managers rely on a process known as a decision tree to map the various risks and potential outcomes and ultimately predict their chances for success. Because of the uncertain times, superintendents need to show stakeholders what is needed and intended within the 2021 budget.

A note of guidance: a GGA Partners global study of members’ expectations amid the pandemic found that members are unsupportive of diminished or deteriorating standards of care and upkeep for their clubs’ facilities. Members and golfers will continue to pay dues provided that established standards of excellence are maintained.

4. Estimate operational costs based on historic norms.

Sound budgeting normally relies on a zero-based approach. However, multiple uncertainties require that superintendents use established norms for budget assumptions. From these historic patterns, one is wise to contemplate — and budget — line-by-line variances from established norms. Among the wild-card projections for 2021 costs will be labor, fuel, chemicals and pesticides.

Labor costs will remain uncertain as access to workers who want to work and whose medical conditions allow them to will influence the labor pool and one’s access to it. Chemicals and pesticides will likely show volatile swings subject to supply-chain influences and may require superintendents to rely less on just-in-time deliveries and maintain larger than normal on-site inventories.

5. Keep stakeholders informed.

Quarterly budget updates that identify aspects of the budget in need of a mid-course correction are recommended. Proactively gather and inform decisionmakers where changes are occurring and where adjustments are needed. Keep ahead of rapidly changing — and changeable — circumstances. All involved will appreciate your ahead-of-the-curve approach and make better decisions as a result.

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.

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