Tag: henry delozier

Effective Board Orientation

Date:

Good beginnings create a sound future. A challenge in many private clubs is that every year is a “new beginning” as new board members are seated and outward-bound servant leaders are replaced. Four important considerations will make leadership transition more effective and favorably impactful at your club.

Plan and implement board orientation earnestly
Most new board members consider themselves well-versed in governance, strategy, finance and leadership, which is good as these are the cornerstones of effective club governance.

The catch is that most board members—especially in these skeptical and conflicted times—bring certain baggage with them into the boardroom. One of the most important first steps when new board members are empaneled, is to confirm shared and basic understandings, such as:

Boardroom confidentiality is essential to trust within the board and beyond. Most private club boards follow established corporate board practices requiring all board members to execute confidentiality and nondisclosure commitments. A growing audience of club boards now imposes dismissal from the board when confidential information is leaked from the boardroom.

Conflicts of interest—as is common in corporate America—are carefully monitored and not permitted in top-performing boards. Annual renewals of non-conflict statements are common practice.

Review and understand the club’s governing documents—bylaws, rules, and board policies manual—to ensure that all board members understand the club and the gravity of their duties.

Confirm the club’s strategic priorities
Most clubs have developed a strategic plan, which is an overarching plan of action for the business of the club, in addition to such important strategic components as the (a) master facility plan, (b) capital maintenance budget (replacing existing assets), and (c) capital improvement budget (adding new amenities). The fact is that one of the primary duties of a board is to attend to the financial well-being of the club by focusing on the balance sheet.

An advanced understanding of the club’s goals and objectives requires focused one-on-one discussions with the board chair and new board members—if not all board members. This step should be a priority before the first board meeting.

Charter committees with great intention
Committee charters are the job description that guides the work of club committees by providing structure and an understanding of what the committee is—and is not—to do. Excellent examples of committee charters are readily available.

Among the most frequent mistakes made by most board committees are (a) much ado about nothing while accomplishing very little of the strategic priorities, (b) executing personal agenda items rather than strategic goals and objectives, and (c) inadequate reporting vertically to the club board and horizontally to other board committees.

The current best practice standard includes committees for finance, nominations, and audit. Committees for golf, greens, tennis and house are now identified as operating committees and are guided by the club’s manager/CEO.

Communicate. Communicate. Communicate
The most frequent complaint among ordinary private club members is, “Communication around here stinks.” In these skeptical times, club members doubt their boards’ dedication, capabilities, and successful performance in the absence of a steady flow of relevant board communications.

Members are eager to know what the club is doing. And, in the absence of effective board communications, tend to fill in the blanks of unexplained and inadequate results.

The most effective club communications are characterized by (a) redundant messaging to ensure that most members receive primary messaging from the board; (b) multiple media usage to address the broad generational spectrum present in most clubs today, and (c) personalized communications which address topics that are most interesting to each member and reducing the flow-through of communications about club activities that are not of interest to particular members.

The best-performing club boards take club governance seriously, and the transfer of leadership within the club is mission-critical to the club’s future.

This article was written by GGA Partner Henry DeLozier and appeared in the October 19, 2024 edition of BoardRoom Briefs.

 

Innovation…the Key to Success in Private Clubs

Date:

No stranger to innovation, Bob Dylan recorded “Like a Rolling Stone” in early summer of 1965 causing Bruce Springsteen to say of the first time he heard it, “[it] sounded like somebody’d kicked open the door to your mind.” The song was innovative and wildly admired in numerous ways and changed popular music for years to come. Innovation seldom comes in such a lightning bolt.

In the wake of a once-in-a-century event like the coronavirus pandemic, what innovations has your club introduced? Some of the most interesting innovations tie to the growing capabilities of artificial intelligence (AI) where performance diagnostics for golf and tennis; where applications of technology are enabling more seamless facial recognition which enable club personnel to eliminate the confounding “what is your number” question; and where advanced cybersecurity can protect private club members’ identities and confidential information. The possibilities are like a rolling stone.Three innovations worthy of consideration for your club:

1. Performance Enhancement Capabilities – One golf swing analysis chamber is not enough, as most clubs have found. Then, two are found to be lacking in most clubs and only when clubs commit to making athletic performance facilities a central feature in their approach to innovation do they prosper.

The reasons most often found in clubs taking this big step are three-fold:

Enthusiastic users are seen by other members as “hogging” the new amenity and, thus reducing others’ enjoyment or experimentation.

The social enjoyment, where groups of golf or tennis enthusiasts gather for informal “leagues” during off-season and inclement weather conditions. The blend of athletic, competitive, social seems to be popular with club members.

The pressure on club boards to find new and interesting activities escalates with each advancement.

Golf training and swing analysis capabilities are exceedingly popular. Bear in mind that a tennis stroke can be analyzed if a golf swing can be. And then, there will be pickleball.

2. Personnel Development Methods –Many club leaders are answering questions about the quality of member services and innovative managers are turning to new-found programs and resources for teaching service capabilities to a higher and more consistent levels.

“To effectively shape training and development initiatives, it’s crucial to incorporate the employee experience,” says Eric Hutchison, PhD, Director at GGA Partners. “Leveraging new technologies alongside established knowledge has unlocked a vast array of training possibilities for enhancing upscale member services.”

How does it feel to be on your own when capabilities are building all around?

3. Emotion-Based Member Activities – Members join clubs for many reasons. Eric Brey, PhD, another Director at GGA Partners, reports, “Club members indicate they are most satisfied with the emotional value they receive from their membership. This value is created from the feelings they have toward their membership.”

Socialization – The desire to interact with friends and family dominates this point of emphasis. Part of the human condition, socialization is one of the basic needs clubs serve.

One of the most impactful innovations in clubs has been the growth of open-air or al fresco dining experiences that emerged responding to Covid-period social distancing guidelines. From this concept, some clubs are capitalizing on open-air member events like a Sunday afternoon picnic which underscores all members desire for a safe setting for activities which bring friends and families together.

Personalized Service – Many members want to be recognized and treated as “special” as part of feeling comfortable at their club. Clubs that provide personal recognition – like being called by name without prompting – fulfill this need of many members.

Wine programs where members’ names are attached to their own bin filled with wines chosen for them. Next-generation ideas emerging bring forward bespoke menus for small member gatherings…think of a catered event on a smaller scale of 10 to 20 members per event.

Who wants to be a complete unknown with no direction home?

Innovation in private clubs is emerging as a platform for market differentiation and competitive advantage. Club leaders who recognize these opportunities provide valuable opportunities for their clubs’ service to members’ needs.

GGA Partner Henry DeLozier penned this article.

Where Governance & Strategy Converge

Date:

Peter Drucker famously advised, “Culture eats strategy for breakfast.”

And he was correct. In a private club “culture” is governance. Club leaders do well to place themselves and their clubs at the intersection of governance and strategy. Five keys for clubs that master blending governance and strategy are shown below:

1. Be intentional. Making your club’s governance better – more trusted…more transparent…more business-like – is one of the primary goals.

Sound and trustworthy governance follows business planning that is organized, deliberate, and time oriented. In day-today parlance it is a matter of telling people what you will do and doing it to the best of your ability. Sound strategic planning for a private club involves: (a) informing members as to what the club’s leaders will do, (b) providing timely updates to inform all members, (c) adjusting to changing or emerging circumstances, and (d) executing a thorough plan that has been shared with all members.

By definition, strategic planning is a process-driven method for identifying key goals and objectives and the methods that will be used to answer the question: what?

2. Build the business case for sound governance. Show how strategy delivers and keeps your club’s members engaged, happy, and supportive. Most club members want to know several simple things: (a) what the Club stands for – as described in its mission, vision, and core values; (b) the primary goals that their board will pursue to deliver on the club’s promises; and (c) accountability by the board to the general membership for the decisions that are made with their resources if time and treasure.

“We need to decide who we want to be when we grow up.” This over-simplified statement is often the one used by club members when describing club’s which lack clearly stated and understood purpose. Club leaders do well when they can clearly state the club’s purpose.

The business case for sound governance involves reliable financial performance on which most members place great importance and the assurance that “the club will continue to be what I want it to be.” Since clubs evolve in real time, club leaders must regularly update and revise the club’s purposes to ensure that the club remains relevant to most members.

3. Set a process map and timetable. Trustworthy, transparent governance requires stating one’s intentions and reporting regularly in a time-oriented manner. Stated simply, “plan your work and work your plan.”

Process maps are everyday corporate tools which provide structure, organization, time references, and accountability. The most useful process maps used in private club settings – such as a GANTT chart – show (a) what is to be done and (b) when it is to be completed. Nothing complicated here.

Timely updates which are redundant messaging using multiple media – such as email, hard copies, and social media links – help interested members to understand how the club is being effectively governed and lead.

4. State the strategic goals clearly and simply. Best practice goal setting relies upon four to six annual strategic goals. Select the goals that will most effectively move the club forward constructively and address the club’s primary needs.

Review the difference between strategy and tactics to ensure that your club’s goals are not tactical. The operating or business plan are the place for the tactical objectives. A key to dependable governance is the board members’ ability to remain focused on the big-picture strategic goals.

5. Measure and report the board’s performance on a strategic scorecard. Demonstrating to ordinary members of the club that they board understands that it is accountable to members is a cornerstone for sound governance.

Keep score on the four to six strategic goals and update the scorecard quarterly. In addition to simple email blasts, conduct quarterly meetings with members to update them regarding strategy…and don’t be dragged into the tactical weeds with concerns of the day.

The intersection of governance and strategy defines the future success of your club.

GGA Partner Henry DeLozier penned this article for Boardroom Briefs. It appeared in the August 3, 2024 edition.

Hustling to Restore Hogan’s Alley

Date:

Imagine how the architects who were commissioned to restore the Notre-Dame Cathedral to its original magnificence felt in 2021 when awarded the project and given an ambitious timeline for its completion. Or how a surgeon feels with Tiger Woods on his operating table.

Welcome to the emotion-charged worlds of Colonial Country Club CEO Frank Cordeiro, director of agronomy Rich McIntosh and renowned golf course architect Gil Hanse when the decision was made to fully renovate one of the most historic courses in America.

Their job was to bring Colonial back to the way it played in its early days — say, in 1941 when Craig Wood won the U.S. Open over the track that came to be known as Hogan’s Alley, so named for Ben Hogan’s five wins there.

They were tasked with reintroducing a ruggedness to the landscape — a more natural look and feel — and bringing the added influence of the Trinity River into play. While the patient was on the table, why not also revamp the course’s irrigation systems?

Oh, almost forgot: They would have less than a year’s time to complete the project before PGA Tour players struck their first shots at Colonial in the long-running Charles Schwab Challenge. Under more normal circumstances, such an undertaking would require 18 months.

Hanse, whose résumé includes restorations at Los Angeles Country Club, the Olympic Club, Oakland Hills and Baltusrol, had faced aggressive deadlines before in his celebrated career. But those challenges didn’t come packaged with Texas’s unpredictable weather. The renovation’s success hinged on the course’s recently planted turf making it through the winter without significant setbacks. On that score, they surely found no comfort in the state’s recent history of record-breaking ice and snowstorms.

Nor would there be any mulligans. The timeline allowed for no adjustments — the pros would be the first to play the course, even before any members.

Intimidating? Daunting? Risky for men with their estimable reputations?

As Hanse said — and many others no doubt believed — failure was not an option. “When you have a deadline like this, you really can’t fail. There’s so much riding on it.”

Those who took on the challenge — a group that also included Caveman Construction, LaBar Golf Renovations, Heritage Links, Michael Kuhn & Associates and Colonial’s own agronomy staff — followed in the bold footsteps of Colonial founder Marvin Leonard. Some eight decades ago, Leonard envisioned a golf course and club unlike others in the Lone Star State. He wanted bentgrass greens when others warned against it. He conceived of an invitational event for the world’s best players. He persuaded the USGA to bring its national championship to Colonial only five years after it opened.

The team swung into action almost as soon as the last putt dropped in the 2023 Charles Schwab Challenge. In all, they moved upwards of 30,000 cubic yards of dirt as part of a $25 million budget.

A supportive membership surely relieved some anxiety. “The project received well over 80 percent support at the time of the project approval vote,” Cordeiro says. “Throughout the project, the members were patient and supportive. No complaints, just encouragement, support and excitement.”

By now, we know the project was successful. Reviews were unabashedly positive in the days leading up to May’s tour stop and during the tournament.

“The project was executed without a single change order. Amazing on a project of this scope, complexity, and schedule. Not possible without great partners,” Cordiero marvels.

Even some of golf’s notoriously harsh critics were impressed.

“I imagine it’s tough for a course designer to bring a course back in time, but accommodating the modern game, making it maybe more playable for an average member 51 weeks of the year, but still a championship golf course making it as or more difficult for us,” Jordan Spieth said on the eve of this year’s Charles Schwab event. “I guess time will tell over the next four days, but it really seems like he’s somehow done that, and that’s really cool.”

GGA Partner Henry DeLozier penned this article for golfcourseindustry.com. It appeared in July 2024.

Addressing Board Transparency

Date:

ADDRESSING TRANSPARENCY
THREE FACTORS CRITICAL TO HIGHLY EFFECTIVE PRIVATE CLUB BOARDS

As society becomes more open and increasingly skeptical, club members demand greater transparency from their boards. Whether in member focus groups, general meetings of members or the club dining room, members seek greater transparency.

Three factors are proving critical to highly effective private club boards: (a) communication methods, (b) communication cadence, and (c) nondisclosure rules.
Boards are encouraged to heed three primary factors:

Establish and normalize the board’s communication methods. Develop a comprehensive communication plan for the club and make board communications an important and consistent part of the club’s communications. In so doing consider:

1. Topics of interest – Most club members seek a sense of “belonging.” See that they are invited to suggest topics of interest to them. In most clubs, that roster of needs includes activities and events, human interest stories about fellow members and staff, and the latest programs for each member segment. To ensure a sense of inclusion, see that members are aware of important activities well in advance of the sign-up or registration periods.

2. Multiple media options – Rely upon a wide array of media tools ranging from social media, email, postcards, and posters within club buildings. Most clubs serve multiple generations with preferred and most commonly used media options. Recognize that different subsets of the club’s members – separated by gender interests and generational media usage – require recognition and programming.

Maintain a reliable cadence of communications. Establish, announce and honor a realistic cadence of communications by topic and by membership category to help your members know what to expect and when. There are several keys to an effective communications cadence:

1. Communications profile – Develop an understanding of communications preferences for each member. Understand when – by day of the week and time of day – each member wants communications from the club. Understand what media options each member prefers. Use it.

2. Communications calendar – Publish the communications calendar to enable all members to watch for the topics of greatest interest to them. Keep it. Ensure that members and staff are well aware of the schedule and have ready access to each communication.

3. “Big events” communications – For the most popular club-wide events, such as the member-guest, holidays with Santa, parent-child dance, interrupt the normal cadence to draw attention to these special occasions.

Be transparent about the topics which will not be disclosed. Some topics – such as matters of club member discipline, employee compensation and benefits, and contract negotiations while in process – are confidential and should not be disclosed. Make it clear to members that topics require confidentiality of board members … and honor that confidentiality requirement. Be understanding and consistent to demonstrate that the board seeks the openness many members desire except on these important points.

Be transparent about what topics the board will not divulge for reasons of confidentiality and employee/member privacy. Some members want to see board meeting minutes and the club’s financial information, such as the balance sheet and income statement. The board should develop and broadly communicate what information it will share with members and in what format. The board is well advised to remember that these reports should be considered confidential and, therefore, not readily distributed outside of the club membership.

Beyond members’ demands for greater transparency, effective boards want club members to be well-informed and engaged with their clubs. Private club boards must maintain highly effective, truthful and consistent communications with club members. The rewards are greater member satisfaction, member engagement and a restful night’s sleep for board members.

This article was written by GGA’s Henry DeLozier for The Boardroom Magazine. It appeared in the March/April 2024 issue.

What Do Members Want?

Date:

Some club leaders believe that it is a fool’s mission to try to understand what members want.

In fact, it is quite simple…you need to ask members what they want. Michael Gregory and Dr. Eric Brey at GGA Partners can tell you with certainty that developing a broad and deep understanding of members’ wants, needs, expectations, and fears is a matter of faithfully applying proven practices of attitudinal research.

Dr. Brey, a PhD-accredited professor at the University of Wisconsin – Stout, is an expert at leveraging analytics to implement dependable customer-centric strategy and hone it on what truly impacts satisfaction. And it all begins with asking members what they want. Sometimes referred to as qualitative analysis, members’ viewpoints are normally collected within small groups and sometimes validated in expanded follow-up listening sessions. In his work with GGA, Dr. Brey has implemented this science within private clubs where understanding members’ attitudes are so important.

In order to measure what matters are of greatest importance to a given club’s members, attitudinal surveys prove to be a trustworthy tool. Establishing the proportion and intensity of members’ attitudes has become even more important in a time when members want to know that their viewpoints were taken into account.

Gregory, having worked at GGA since 2007, is expert at administering private club surveys. He emphasizes that attitudinal surveys in private clubs are essential because the relationship between the club and its members is an emotional and often intense one. In recent years, club leaders have become more reliant on member surveys as the sophistication of such surveys goes deeper into members’ viewpoints. Not the stuff of satisfaction surveys, an attitudinal survey seeks to quantify and measure members concerns and expectations, willingness to fund certain capital projects, and identify the characteristics – by analyzing underlying data – to provide club leaders with clearcut insight into what members want. Five factors that are consistently revealed in member surveys include:

 

  1. When factures occur in private clubs, they are often on the lines of gender and generation.
  2. Normally, the most satisfied members are the newest and the least satisfied members are the most tenured in the club.
  3. Older (in age) members are least supportive of capital projects and debt.
  4. Younger members are eager to see regular capital improvements.
  5. Women tend to be most alert to the club’s value system…”are we what we claim to be?”

Insights vary from club to club and require careful and objective analysis of underlying demographic data to enable the board to understand how members align and differ on certain topics. Dr. Brey advises careful analytical discipline and measurement. “There is no substitute for patient and transparent data analysis,” he says.

At the end of the day, Brey and Gregory confirm that it is possible to know what members want. One simply needs to ask the right questions in the right way.

This piece was authored by Henry DeLozier, Partner, for the National Club Association‘s Winter 2023 Issue of Club Director Magazine. 

Connect with Henry – henry.delozier@ggapartners.com

Whitepaper: Unlocking the Strategic Power of Member Feedback

Date:

This GGA Partners whitepaper discusses new approaches to understanding private club members. By re-imagining the potential of member feedback and charting a path towards maximizing feedback in strategic planning, private clubs can increase their attractiveness and competitiveness further.

This whitepaper reviews how Medinah Country Club strengthened its position in an increasingly competitive environment and uncertain economic time. By supplementing its understanding of member satisfaction to identify how to allocate limited resources, the Club was able to significantly impact member satisfaction and identify the greatest areas of opportunity.

Key topics and actions that are highlighted in this whitepaper include:

  • Advanced data analytics, including the Member Feedback Loop
  • Approaching data differently to pivot towards feedback opportunities
  • Unlocking the true potential of member surveys
  • Leveraging Satisfaction Impact Assessments to support club strategy
  • Delivering on the promise of data-informed decision-making

Download the whitepaper

For more information, please contact us.

Labor, Capital Spending Top 2022 Budgets

Date:

Budgeting for 2022 is complicated by rapidly changing circumstances and market conditions. GGA Partner Henry DeLozier offers insight into areas where budgetary impact will be greatest. 

Budgeting for 2022 is complicated by rapidly changing circumstances and market conditions. For most experienced hands, anticipating changes within their industry and business is far easier than predicting the breadth and depth of the impact the changes will have on their budgets. Here are two significant categories where budgetary impact will be greatest:

1. Labor costs

Historically, the cost of labor and employee benefits represent the largest line item in a golf course’s operational budget. A trend toward a $15-plus per hour minimum wage and desperately low labor supply conditions will only increase the budgetary impact of labor and benefits. In the wake of the COVID-19 pandemic, and the resulting impacts on labor, two truths are becoming evident:

  • Those clubs and courses that kept staff on the payroll and continued long-term relationships with their employees are being rewarded in two ways. First, those courses are not having to search a tight labor market for replacements. Second, course care and upkeep have been sustained by committed and knowledgeable employees who have a running head start on those clubs that have been forced practically to start over.
  • Working knowledge of your specific course and conditioning expectations promotes a more cost-effective recovery process.

But what if circumstances and decisions beyond your control have forced you into a game of agronomic catch-up? Here are some remedial actions to consider:

  • Update your agronomic plan to state your expectations for course conditioning. New employees need (and want) to understand what is expected of them. Be thorough. Be enthusiastic. Show how much you care.
  • Plan for robust new hire training. Pair experienced hands with newcomers. See that the veterans describe the values and standards of the work to be done with the same clarity and as enthusiastically as teaching the job’s “how to” components. Train the trainers to ensure across-the-board engagement and understanding. Plan daily technical training for your round-up sessions to bring new hires up to speed and promote consistency.
  • Hire veterans. There are approximately 19 million veterans in the United States, according to the U.S. Department of Veterans Affairs. As the increasing number of veterans mustering out of service expands, many trained and mature workers are searching for jobs. Some three-quarters of these veterans saw wartime service. Take the steps to learn more about those who have given so much and see how much they can give to your operation.

2. Capital maintenance

Capital spending for most golf facilities has expanded decidedly as an improving economy loosened purse strings and made more money available for deferred capital maintenance spending. Financial analysts at our firm note that capital spending is up by more than 55 percent at U.S. golf facilities, with most projects focusing on course renovations and restorations of historic designs, greens reconstruction and new bunker projects.

With the upsurge in golf’s popularity in the wake of the pandemic, many facilities have experienced growth in rounds played and membership enrollments. According to Golf Datatech, rounds played in 2020 increased by 13.9 percent over 2019 and through the first quarter of 2021 are up another 24 percent. The increased demand for tee times has given owners and managers new confidence to expand facility spending.

What are the smart moves being made by superintendents? They’re updating capital project rosters and renewing long-awaited requests for capital to upgrade facilities. And they’re not waiting. They’re describing the features and benefits of the intended projects and supporting financial projections with trustworthy third-party analysis.

In these uncommon times, it is important for turf pros to remember the sun does not shine on the same dog’s back every day. Market demand will shift. Access to labor will change. But the self-imposed high standards for most superintendents will remain and the expectations of enthusiastic golfers will expand. Prepare your 2022 budget carefully and with a broader understanding of social, economic and market conditions.

This article was authored by Henry DeLozier for Golf Course Industry magazine.

You’re Now the Leader

Date:

In today’s world, where technology, media, and consumer demand intersect in a constant state of disruption, leadership starts with understanding and dealing with change. Henry DeLozier provides perspective on how superintendents can rise to the challenge.

Times have sure changed. Now you’re the one whom young men and women — the ones who aspire to your position one day — look to for guidance and assurance. And it’s in those hopeful faces, full of equal amounts potential and self-doubt, that your biggest challenge and the most important aspect of your job lies.

It’s called leadership. And in today’s world, where technology and media and consumer demand are intersecting in a constant state of disruption, leadership starts with effectively understanding and dealing with change. Among the biggest changes for golf course superintendents in the last decade:

 

  • Agronomic knowledge has become “table stakes.” Knowing the science of growing grass efficiently and effectively has gotten most superintendents into the game. The superintendent is often the best-educated member of the management staff in many facilities. There is no way to overstate the importance and reach of agronomic knowledge, and yet the job is so much more now.
  • Techniques have advanced. Generations of superintendents schooled in the college of hard knocks have found new and innovative solutions to age-old problems. These solutions have resulted in more efficient usage of water, advanced and less damaging pesticide management, and improved playing conditions arising from healthier and denser turf.
  • Environmentalism is of top-tier importance. If everyone was as diligent an environmental steward as golf course superintendents are, we would live in a better, safer world. Trained in the chemical sciences and well informed through professional resources like GCSAA, new generations of superintendents have introduced planet-friendly solutions to fertility and water scarcity challenges.
  • Golfers’ expectations have become more robust and detailed. In their insistence on improved playing conditions, golfers — God love ’em — have continued to push for tournament-quality conditions daily. Their demands, not unlike the quality demands of consumers for any other product or service for which they pay a premium, add stress and push budgets across the country.

If those are some of the major changes currently affecting the superintendent’s world, what might be over the horizon in terms of effective leadership qualities? From our perspective, it’s retaining your best talent. Although job-hopping in many industries has slowed this year as economic uncertainties weigh on employees, the situation could change as the economy and job market continue to improve, especially if employees aren’t feeling supported by their employer. It’s a challenge shared by your peers in organizations across the board.

“Employees crave a rewarding and purposeful workplace atmosphere. Now is the time for organizations to evaluate what is working well for their people, and what’s not resonating,” says Laine Thomas Conway of Alight Solutions, a global consulting firm. “When employees feel their employers are continually improving their offerings and working to enhance the employee experience, they are likely to remain positive and committed to their organizations, and in turn, employers can better retain top talent.”

In other words, says Tom Wilson, the CEO of Allstate Insurance: treat employees like customers. “They don’t pay you in dollars, but in hard work. That has led us to an employee choice model in the new world,” he says. Here are several tactical suggestions to help your team members:

 

  • Education grants for the children of your crew. When the club or golf course funds educational support for the children of its workers, your crew will see you as the employer of choice.
  • Field days for employees’ children. Help families share in the workplace culture and pride with your team. Most children want to see where their parents work, and what cooler place is there than a golf course?
  • Regular feedback sessions. Give employees the same feedback opportunities customers have with retailers and service providers.
  • All-team meetings. Help crew members understand their place in the overall team effort, including other departments and functions at the club and course.

It’s no longer enough to react to changes affecting our careers. To be an effective leader and to encourage your best players to remain part of the team, we must anticipate the next wave of change heading in our direction.

This article was authored by Henry DeLozier for Golf Course Industry magazine.

Mid-Year Predictions for the Second Half of 2021

Date:

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.
Menu