Mid-Year Predictions for the Second Half of 2021

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.

Taking Club Elections Digital

The pandemic has accelerated the need to move the ballot box for club elections from paper to the computer and this trend will continue in the coming years. GGA Partners online voting specialists Michael Gregory and Martin Tzankov explain the challenges and opportunities to consider when moving your elections to an electronic voting platform.

Private golf, business, and leisure clubs spend a great deal of time and money planning, executing and delivering the results of club elections, often with discouraging voter turnout.

Over the past two years, GGA Partners, in partnership with secure platform provider Simply Voting, has worked with many clients to move the ballot box for club elections from paper to the computer. As this trend grows in the coming years, our team of skilled specialists shares the challenges and opportunities available as your club considers moving to an online voting platform.

Simply Voting logo
A web-based online voting system that will help you manage your club’s elections easily and securely.

The Challenges

According to GGA manager Martin Tzankov, the biggest challenge is trying to retrofit new technology and process to existing bylaws. “Most bylaws were written before the introduction of online voting,” commented Tzankov. “Outdated bylaws cause complexities in the process, particularly regarding proxies. It is important to understand what you can and cannot do to ensure the election conforms to your club’s rules.”

Another challenge is the organization of member data including current contact information and eligibility.

“The ability for clubs to segment member data is complex and critical,” stated Michael Gregory, a partner at GGA. “Whether it is a current member whose dues are in arrears, or a new member who became eligible while the vote is taking place, clubs must ensure that only eligible votes are tallied in the final results.”

It’s a simple fact that humans make errors and there are times members who were against an issue will question the integrity of any vote. Online voting eliminates that challenge by providing the ability to audit the process from start to finish.

Mobile smartphone screen depicting digital survey with quote "The biggest opportunity for clubs that choose online voting is increased member participation in the process" - Martin Tzankov, GGA Manager

The Opportunities

“The biggest opportunity for clubs that choose online voting is increased member participation in the process,” said Tzankov. “Members use technology every day so casting their vote on their computer or mobile device, which often takes less than 5 minutes, is simple and easy. And while there will be some members who prefer paper, in our experience, the majority of members prefer the online option.”

Along with increasing the experience, participation, and satisfaction of members, online voting is a powerful tool to segment the results by age, membership category and other data sets. Data segmentation allows your club to identify and track trends across a wide spectrum of subjects, providing valuable insight for future planning.

The capability to deliver a consistent schedule of communications is another opportunity provided through the online voting platform. Rather than incur the expenses of printing and mailing information, your team can prepare and schedule a series of email communications to inform and remind electors of the voting period and then deliver the results in a timely fashion.

“Environmental sustainability is increasing as a factor to choose one club versus another,” added Gregory. “Clubs who implement online voting have the opportunity to send a clear message that they are taking steps to minimize their impact on the planet.”

Eliminate The Risk

Warren Buffet has been quoted as saying, “Risk comes from not knowing what you are doing.” There is great truth in that statement.

To understand the risks and rewards of online voting, we encourage you to have a conversation with specialists Michael Gregory or Martin Tzankov to gain the knowledge you need to ensure successful elections at your club.

Michael Gregory
Partner, GGA Partners
michael.gregory@ggapartners.com
416-524-0083

Martin Tzankov
Senior Manager, GGA Partners
martin.tzankov@ggapartners.com
905-475-4012

Download the info sheet

In Pursuit of Innovation

GGA Partners Releases Innovation Whitepaper as Part of Thought Leadership Series

‘In Pursuit of Innovation’ aims to provide managers with guidance to unlock creativity

TORONTO, Ontario – GGA Partners, a global consulting firm, has released In Pursuit of Innovation, the fourth in its series of thought leadership whitepapers. This authoritative guide explores how surviving in today’s competitive landscape depends on the ability of clubs and organizations to unlock their creative potential and offers up several guidelines to allow freedom of thought and imagination.

In Pursuit of Innovation highlights the way companies must continuously transform in order to survive and how a constant pursuit of innovation will guard against failure, whether gradual or sudden.  The paper clarifies exactly what constitutes innovation, where it comes from, and how club leaders can practice innovative thinking to unlock a culture of creativity.

“Our experience with thousands of private clubs over nearly three decades shows us that without innovation clubs become stale, membership falls until it eventually flatlines, competitive advantages diminish, members become dissatisfied, and talented staff look elsewhere,” explained GGA Partner Henry DeLozier, one of several authors of the piece.  “Innovation can come from anywhere inside an organization, and we think it should be encouraged from all corners, from the folks raking bunkers to the person answering phones to the accountant balancing the books.”

Innovation happens at the intersection of problems, opportunities, and fervent minds but must be deliberately sought, practiced, and encouraged at all levels. “It’s normal in any business to want to maintain the status quo. It’s comfortable, it’s safe, and it’s easier than making changes,” said DeLozier. “In reality, the status quo only works for so long. If you’re going to grow, you must innovate.”

In Pursuit of Innovation illuminates four common roadblocks to an innovative culture and identifies the steps necessary to unlock a culture of creativity.

In addition to innovation, GGA Partners has published new whitepapers on strategic planning, branding, and governance which are accessible via the firm’s website.

Click here to download the In Pursuit of Innovation whitepaper

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities. We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, please visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

GGA Partners Expands Research & Survey Capabilities with the Addition of Experienced Hospitality Research Professor

Dr. Eric Brey, PhD, joins GGA Partners as a Director to bolster consumer research capabilities

TORONTO, Ontario – GGA Partners has expanded its portfolio of services for private clubs, public golf courses, residential communities, resorts, municipalities and hospitality clients with the addition of an experienced research mind and acting hospitality educator.

Dr. Eric Brey, PhD, a researcher and professor at the University of Wisconsin-Stout, School of Hospitality Leadership, has joined GGA Partners as its newest director to expand the firm’s research efforts.

Dr. Brey’s research expertise will strengthen GGA’s capabilities in customer feedback and market research, both of which are core services for GGA. One of the many expanded offerings the addition of Dr. Brey supports is 3-Factor Theory Analysis designed to provide a deeper and more meaningful understanding of the touchpoints that have the greatest potential to impact customer and member satisfaction.

professional headshot of Dr. Eric Brey, PhD
Dr. Eric Brey, PhD

Recently, Medinah Country Club engaged Dr. Brey to conduct 3-Factor Theory Analysis using the raw survey data collected by GGA. “Identifying the touchpoints important to our members provided tremendous insight across our entire operation” stated Medinah Country Club General Manager Robert Sereci. “Clubs will benefit greatly by using this methodology to pinpoint opportunities on which to focus enhancement efforts to achieve the highest level of enjoyment for their members.”

In addition to enhanced customer satisfaction analysis, Dr. Brey’s vast experience in consumer research will provide expanded opportunities for survey interpretation, managed customer feedback, third party performance monitoring and analysis of existing client data to support GGA’s strategic planning and business intelligence services.

“The synergies created by combining GGA’s expertise in research and strategic planning with the knowledge and experience I bring to consumer research are exponential,” commented Dr. Brey. “Together we will be able to assist golf, club, resort and municipal operators with more detailed and comprehensive data analysis that will enhance their ability to make strategic decisions and improve their operational efficiency and customer experience.”

“Research is a cornerstone of our firm and consumer satisfaction is just one component of GGA’s capabilities in this space. Dr. Brey will play a key role in elevating GGA’s industry leading research, and will apply research best practices and new methods to develop even stronger insights for our clients,” commented GGA Partner Michel Gregory. “As a firm we are working to develop an all-encompassing approach to measuring real time, periodic, and long-term consumer feedback that will benefit a wide range of clients in the private club, resort and hospitality industries as well as municipalities who own golf and leisure assets”.

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities. We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, please visit ggapartners.com.

About Dr. Eric Brey, PhD

Dr. Brey earned his B.S. and M.S. from the University of Wisconsin-Stout School of Hospitality Leadership. In 2006, he earned his PhD from Purdue University School of Hospitality and Tourism Management. Dr. Brey spent six years at the University of Memphis, Fogelman College of Business and Economics, Kemmons Wilson School of Hospitality Management before joining the University of Wisconsin-Stout, School of Hospitality Leadership in 2012. In his current role, he serves as professor and chair of the school, teaching marketing, strategy and customer analytics courses, and conducting research on consumer-centric strategy.

Dr. Brey has published numerous peer and refereed journal papers, written industry white papers and book chapters, received many recognitions and honors and has conducted applied research for the United States Golf Association. Recently, Dr. Brey completed a research study for the USGA identifying more than 1,000 touchpoints golfers can have throughout their experience that impact satisfaction and dissatisfaction. The results of the research will provide insights to help operators gain a firm understanding of what customers need and how to meet and exceed those expectations.

 

Media Contacts:

Michael Gregory, Partner
GGA Partners
416-524-0083
michael.gregory@ggapartners.com

 

Webinar: Member Surveys in Uncertain Times

This webinar continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Whether your club is operational or waiting to return to business as usual, now is a crucial time to keep members engaged.

Leverage Surveys to Engage Members During COVID-19

Last week, MemberInsight – a Jonas Club Software company, and the industry-leading member survey platform – together with GGA Partners co-hosted a webinar to discuss the power of member surveys in the time of COVID-19 and how clubs, regardless of their survey platform of choice, can better utilize members surveys during this difficult time.

“Many clubs send member surveys as a regular part of conducting business.” Said Trevor Coughlan, Vice President of Marketing at Jonas Club Software. “The problem is, many clubs only send them annually, and they think about surveying in a linear fashion – capital & long term planning. I believe surveys relevant to the moment and the action taken as a result of them have the opportunity to invigorate the way members feel about a club and its staff. There is no better time for clubs to be stepping into action than now which is why we are proud to make our platform available at no charge for three months.”

“In the current environment staying connected with members is a real challenge, but it’s more important than ever,” explained Michael Gregory, a Partner at GGA Partners. “Surveys are a tool all clubs can be using to stay engaged with their members, to capture important feedback, and to provide a level of comfort to members knowing their club is working hard to come out of this stronger and more capable of meeting their needs, wants and expectations.”

Webinar Playback

The webinar presented the MemberInsight feature set, the science behind survey based communications, and specific examples of surveys clubs can put into action as they remain committed to serving their members.

If you’d like to share the webinar recording with a colleague or watch it again please view the video below.

 

Survey Templates

GGA Partners has provided 5 complimentary survey templates. Download the templates below and use them to give your members a voice during these unprecedented circumstances so you can start taking action on member feedback.

MemberInsight is the optimal platform to start using these templates and gathering member feedback. The company recently announced that their survey functionality is being made available to clubs at no charge for three months.

If you would like to sign up for three free months and no setup fees*, fill out this MemberInsight form or contact Michael Gregory at GGA Partners.

Webinar 4/23: Leverage Surveys to Engage Members During COVID-19

MEMBERINSIGHT ANNOUNCES NO CHARGE FOR THREE MONTHS

JOINS GGA PARTNERS FOR A WEBINAR FOCUSING ON HOW TO LEVERAGE SURVEYS TO ENGAGE MEMBERS DURING COVID-19

Markham, ON Canada – MemberInsight, a Jonas Club Software company, and the industry-leading member survey platform, announces today that their survey functionality is being made available to clubs at no charge for three months. Together, MemberInsight and GGA Partners, the leading consulting firm to many of the world’s most successful clubs and communities, will also co-host a webinar to discuss the power of member surveys in the time of COVID-19.

“Many clubs send member surveys as a regular part of conducting business.” Said Trevor Coughlan, Vice President of Marketing at Jonas Club Software. “The problem is, many clubs only send them annually, and they think about surveying in a linear fashion – capital & long term planning. I believe surveys relevant to the moment and the action taken as a result of them have the opportunity to invigorate the way members feel about a club and its staff. There is no better time for clubs to be stepping into action than now which is why we are proud to make our platform available at no charge for three months.”

In addition to the special offer, MemberInsight and GGA Partners are co-hosting a one time webinar focusing on how clubs, regardless of their survey platform of choice, can better utilize members surveys during this difficult time. The webinar will be co-hosted by Trevor Kluke and Matt Cooper of Jonas Club Software, and Michael Gregory and Ben Hopkinson of GGA Partners and will take place on Thursday April 23, at 14:00 ET.

“In the current environment staying connected with members is a real challenge, but it’s more important than ever,” explained Michael Gregory, a Partner at GGA Partners. “Surveys are a tool all clubs can be using to stay engaged with their members, to capture important feedback, and to provide a level of comfort to members knowing their club is working hard to come out of this stronger and more capable of meeting their needs, wants and expectations.”

The presentation will cover the MemberInsight feature set, the science behind survey based communications, and specific examples of surveys clubs can put into action as they remain committed to serving their members.

Clubs can take advantage of three months of MemberInsight at no charge by visiting:
https://memberinsight.clubhouseonline-e3.net/Special_Offer

The webinar will be held on Thursday April 23, 2020 at 14:00 ET.

Those interested in attending the MemberInsight and GGA Partners co-hosted webinar can register here:
https://register.gotowebinar.com/register/1880267544344608526

About Jonas Club Software – www.jonasclub.com

Jonas Club Software helps clubs thrive by focusing on the creation of exceptional experiences. These experiences are delivered through industry leading services, integrated applications, innovative technology, and long term partnerships with the clubs we serve.
Over 2,300 clubs in more than 20 countries, with memberships ranging from 20 to 20,000, utilize Jonas Club Software technology. With applications ranging from Accounting to Retail Point of Sale, Tee Time Management, Court & Class Booking, Dining Reservations, websites and Mobile Apps, Jonas Club Software is the standout choice for clubs driven to offer exceptional member experiences.

For more details visit www.jonasclub.com

Media Contact:
Trevor Coughlan
Vice President, Marketing
Jonas Club Software
Trevor.Coughlan@jonasclub.com
1-888-789-9073

When Compliance Meets Health and Safety

This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Today, Michael Gregory, a partner of our firm, discusses options and alternatives for clubs with pending annual meeting requirements.

With annual meetings and general elections upcoming, how should clubs meet what may seem conflicting obligations?

As the health crisis evolves, so too do the number and magnitude of issues facing club leaders. One that most take for granted – the annual general meeting and member election – now raises a difficult, if not contradictory, predicament: complying with club bylaws and government restrictions while protecting the health of members, families and employees.

First, know the law.

Is your club located in an area with a state or local government order prohibiting nonessential transit or in-person meetings? If yes, your decision is easy: the club cannot hold the meeting, notwithstanding bylaws that may require it.

According to Glenn Gerena, a shareholder at Greenberg Traurig and a community development and hospitality attorney, “If the club cannot have a virtual meeting under law or its bylaws, the board should discuss with counsel whether the government order gives the board a legal basis to hold a meeting on a virtual [platform] and, if not, to reschedule the meeting to a later date.”

If there is no state or local prohibition regarding an in-person meeting, the club should consider whether it can hold a virtual meeting according to its bylaws.

If your club decides to proceed with an in-person meeting, it is important to provide for proxy voting by mail and encourage all members to stay home and to vote by mail. For members who choose to attend the meeting in-person, the club must observe all health and safety protocols as defined and advised by their local government authority.

Should you go virtual?

Deciding if your club should hold a virtual annual meeting should involve discussions with your legal counsel. Counsel should review applicable state statutes, which may require in-person meetings, permit virtual meetings or defer to the club governing documents. The state statute will govern if bylaws directly conflict with it.

For example, most clubs in California have adopted section 7510 (f) of the California Corporations Code, which allows for electronic meeting and voting and, in cases where state statutes and bylaws conflict, the state statutes supersede the club’s bylaws.

Legal counsel also should review the latest state and local government orders related to the COVID-19 crisis.  For example, the Connecticut governor issued an executive order on March 21, 2020, giving corporations the ability to conduct annual and other shareholder meetings by remote means.  Similarly, for clubs in Canada regulated under the Corporations Act (provincial and federal), orders have been announced to allow members to meet and vote electronically.

“If neither the state statue nor bylaws expressly permit virtual meetings, the club’s board of directors should review bylaw provisions governing amendments and board powers to determine whether the board can amend the bylaws to permit virtual meetings and online voting,” adds Gerena.

In uncharted waters, rely on reason and caution.

While all clubs are encouraged to seek legal counsel to inform and qualify their course of action, club leaders should expect to be operating in uncharted waters and seek to act reasonably and cautiously in the current environment.

“If prudence does not make it possible to meet, then clubs need to consider alternatives,” said Van A. Tengberg, a real estate acquisition and development attorney at Foley & Lardner LLP. “I would not recommend deferring the annual meeting and allowing the board to serve longer terms.  If your bylaws do not allow virtual meetings, then clubs need to consider different options that provide members a reasonable and safe process to meet and cast their vote.”

As with all things in this new normal, communication (and even pulse surveys) that increases members’ understanding of circumstances and current limitations will be appreciated and rewarded and, in this case, may even help to mitigate potential future risk.

In an upcoming article, Michael Gregory will discuss options and solutions to complete a virtual annual meeting and an online vote. Contact Michael at michael.gregory@ggapartners.com or 416-524-0083.

GGA Expands Senior Leadership Ranks

Michael Gregory and Craig Johnston named partners of the firm

TORONTO, Ontario – GGA, the leading authority on successful ownership and management practices for golf, private club, resort, and residential real estate businesses, has named Michael Gregory and Craig Johnston partners of the firm.

Gregory joined GGA in 2007 following a successful college career during which he was an All-American scholar earning a business degree and captain of the golf team.  Since joining the firm, he has helped more than 400 clubs develop and implement a game plan for success. In addition to his client relationships, Michael has managed the firm’s internal workflow team of business analysts and market researchers for the past five years.

Gregory serves as a lead strategist for successful private club business and membership solutions at GGA and is renowned for his ability to use comprehensive membership and market intelligence to develop actionable strategic solutions for clients.

Johnston is a Chartered Professional Accountant (CPA, CA) and alumnus of KPMG. Prior to joining GGA, as a ranked equity research analyst for Scotia Capital, he was recognized in 2016 by Thomson Reuters as the #1 earnings estimator in his sector.

Johnston supports GGA clients in the development and implementation of goal-oriented business strategies to achieve targeted operating and investment objectives. He is a seasoned business strategist and investment executive who leads GGA’s transaction advisory practice, having successfully advised on some of the largest transactions in the club industry over the past three years.

“Craig and Michael have distinguished themselves as expert, reliable confidants to our clients and deliver value day-in and day-out,” commented GGA Senior Partner Henry DeLozier. “The firm will benefit from their joining the senior leadership ranks.”

“Both Michael and Craig have become clear leaders in our firm and mentors to our team of consultants,” said Founding Partner Stephen Johnston.  “Their work ethic and dedication to excellence in professional services is an incredible asset to our firm.”

About GGA

GGA has provided industry-leading advisory services to more than 3,000 clients worldwide including private clubs, hotels, resorts, residential golf communities, developers, homebuilders, government agencies and municipalities, financial institutions, investors and lenders. Operating out of three global offices in Toronto, Phoenix, and Dublin, GGA is a highly specialized consulting firm focused on club and leisure related assets with a professional services heritage as the KPMG Golf Industry Practice. The firm’s expertise lies in its ability to effectively meld club management and operational expertise with highly capable professional strategists and experienced business analysts. GGA personnel include former club managers with experience leading exceptional clubs, along with alumni of Deloitte, Fairmont, KPMG, Marriott, Pulte Homes, PwC, and Scotia Capital. For more information, please visit www.globalgolfadvisors.com.

Media Contact

Derek Johnston, Partner at GGA
djohnston@globalgolfadvisors.com
905-726-0701

Inspiring Member Introductions

New members can be difficult to come by, especially during times of economic turbulence. But your existing core membership can hold the key to unlocking a wave of new members. GGA’s Michael Gregory explains how.

Why are your current members a valuable avenue for new members?

Members who have developed an emotional connection with your club will be proud to show it off to friends and peers. Friends and peers who will typically be of a similar income bracket, age and family profile.

Since the club’s membership proposition already appeals to those existing members, its relevance to their friends and peers is naturally much higher than it would be for a typical prospect.

Add in our findings; surveys of over 50,000 private club members each year reveal that ‘friends and family who are members’ is consistently one of the top three factors in the decision to join. For millennials, it’s even more important. All of a sudden, the importance of existing members comes into focus.

But what is it that gets these prospects over the line?

Ordinarily, a club employee will be the one selling the benefits of membership to prospects. In this case, however, its existing members. They’ll be your best advocates, your best sales men and women. They can express what it means to be a member, told through the eyes of the members themselves. A compelling and convincing message, and an effective mechanism to generate new members.

Should there be an official referral scheme in place to incentivize current members?

Before developing a formal or informal scheme you should scrutinize the current numbers. How many member referral leads do you generate? In our experience, over half of member leads usually come from referrals. If your number is far lower, you first need to ask why.

A member satisfaction survey can provide the answers. If satisfaction is low in areas central to your club’s value proposition, then existing members will not be as forthcoming in promoting the club to their friends and peers.

After your survey, isolate the areas in need of improvement and build these into your strategic plan. With the root causes of dissatisfaction being addressed, the club will organically become somewhere that members have a stronger connection with, and in turn a place they are more likely to recommend to potential new members.

It’s true that a catalyst may still be required to supplement this process and to help overturn a culture of non-referral. But a word of caution on this: a referral scheme should not be rolled out as a short-term solution to get more members. It could come across as desperate, distorting the value perception of membership at your club, and you could give too much away if not carefully developed.

We have found that recognition can be just as motivating as monetary incentives. So, before opting for the financial route, give some recognition to those who have referred members in a given month or year (which could be as simple as acknowledging the individuals in the club newsletter), then see if this spurs on more to act.

Is there something else club managers should be doing to ‘activate’ their members?

A lack of satisfaction can be one cause of low member referral numbers, but it might be as simple as not having created the opportunities for referrals to happen.

The good news is there are some simple and effective tactics you can roll out to create a fertile referral environment:

Golf days – the most obvious but often overlooked. Open days, invitation days and corporate days are a great way for prospects to experience what the club has to offer and provide the opportunity to spend some quality time on the course with other members.

Social events – allow members to invite guests along to select social events. It will introduce them to the club environment, they’ll get to meet other members and begin to feel what it’s like to be part of the membership community.

Crucially, welcome families along to these events too. We know how important spouses can be in the decision to join a club, so they need to get a first-hand look at how membership could enrich their life.

Discovery days – host a discovery day for existing members to bring along selected guests. Put together a dedicated itinerary where prospects can experience what it’s like to be a member, and give them the opportunity to join at the end of it.

Membership toolkit – arm your members with a “membership tool kit”. This can provide them with clear guidance on what to do should any of their friends or relatives want to visit or even join the club.

Is it all a numbers game?

The thing to remember is, a typical club’s attrition rate stands at around 20-35 members. With conversion rates between 8-12%, that means a club will need at least 200 prospects on any given year just to replace what they lose.

So the numbers are important. Your current members should be your most important pipeline for new members, and if less than half of your prospects come from your existing members, it’s time to pay attention and act. Your future depends on it.

The Club for Millennials

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

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