Tag: Golf Course Industry

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.

Practice Areas and the Pandemic

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If you’re thinking about adding or enhancing a practice area at your course, here are some things to keep in mind. This article was authored by Henry DeLozier for Golf Course Industry magazine.

Searching for a silver lining to a pandemic is mostly a fool’s errand. But many golf courses fortunate enough to stay open during the last five months have found something for which to be thankful: Thousands of golfers and would-be golfers are discovering (and rediscovering) a love for the game.

In many places, their affection is being stoked by short-game practice areas that are introducing new players to golf and giving more experienced players a place to hone their games, all the while boosting incremental revenues.

Bradley Klein, a veteran golf travel, history and architecture journalist and Golf Course Industry columnist, observes that the role of short-game practice areas is evolving. “Time constraints were the initial impetus, but that’s changed of late.” He says the trend is toward “more fun, family-friendly” areas that also provide practice opportunities for serious golfers. “They also constitute efficient use of land.”

What’s more, in this era of social distancing, short game areas are a safe space for youngsters to learn the game while socializing and exercising, according to Jan Bel Jan, president of the American Society of Golf Course Architects. She believes the trend will continue to gain momentum. “Short game improvement areas provide benefits to seasoned golfers, promote a welcoming introduction to golf for adult beginners and help courses remain competitive with other area facilities,” she says.

Pinehurst Resort injected new credibility for areas dedicated to the short game and demonstrated its revenue potential when it opened The Cradle — nine holes, all par threes, measuring 789 yards and covering 10 acres — in September 2017. In the last three years, The Cradle has hosted more than 100,000 rounds while becoming one of Pinehurst’s most popular courses.

If you’re thinking about adding or enhancing a practice area at your course, here are some things to keep in mind.

Know your customer.

New practice, training and game-improvement facilities require planning, which starts with understanding the type of player you want to attract. What skill levels will you prioritize? What will be the hours of operation? How will you price access? Member surveys and information exchange sessions with golfers will help you better understand your target audience’s needs and expectations.

Don’t get sloppy.

“Serious design, with interesting greens contours and variety of tee shots” are keys to effective planning, Klein says. “It has to be run like a real golf course and not like a sloppy afterthought.”

Make it fun.

Jim Wyffels, director of operations at Spirit Hollow Golf Club in Burlington, Iowa, is an innovative thinker when it comes to making golf fun. Spirit Hollow’s Shankopotamus Golf Academy, which features TopTracer technologies, was designed with two goals in mind, Wyffels says. “The first was to create an additional amenity for our stay-and-play guests in the evening and during inclement weather. The second was to create a new revenue stream in the evening and during winter months that would target our local market. Our plan was to create a fun, game-like family atmosphere where all age groups and skill levels, including non-golfers, could be entertained.”

Keep your superintendent in the loop.

How will the golf course superintendent maintain the short-game area? Engage the superintendent to ensure design characteristics that can be efficiently and cost-effectively maintained. Concerns such as adequate turning radii, slopes that can be consistently cut and safely navigated by staff, and shapes that match existing terrain on the adjacent golf course are planning priorities. Bel Jan advises planners to be mindful of optimizing drainage, building putting surfaces to established standards and minimizing shade impacts to enable turf recovery.

COVID-19 really has no upside; it has wreaked havoc in unprecedented ways. But if a crisis of its proportions has encouraged more people to take to the course, and prompted golf managers and leaders to think more innovatively about amenities like short courses and practice areas, then it has left something of value in its wake.

Folding Multiple Plans Into One

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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. 

Inspired by the Masters

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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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