Keys to Effective Communications

 

3 Keys to Effective Communications

Year after year, private club members demand ever-greater transparency and expect their servant leaders to communicate more effectively. In our experience, club leaders are responding, but the fact is that communications are only effective if they are two-way. Leaders must deliver effective communications, but members must open and read what is sent.

To develop communications your members want to read, GGA Director Linda Dillenbeck, a seasoned communications and brand management expert, offers three keys for club leaders seeking to improve the quality and relevance of the information they send to members:

1. Keep communications short and simple. “Too often, board communications are filled with unnecessary or irrelevant information. Use simple words to engage and inform members,” stated Dillenbeck. “The average person will consume about 200 words before they stop reading and start skimming, so don’t waste time telling someone how to build a watch when all they really need to know is the time.”

2. Separate your key thoughts. Dillenbeck has observed that the internal and external club communications are often complicated, fuzzy, or downright confusing. “Not only do people, and your members, prefer short communications, they also want simple and straightforward messages, “stated Dillenbeck. “The most-read information is the one that separates thoughts into shorter paragraphs and uses subheads and bullet points. In that way, a member in a hurry can get the gist of the message without reading every word.

3. Repeat, Repeat, Repeat. Linda observes, “Your members, like all consumers, are faced with over 3,000 messages of one type or another per day, most of which are not read or retained. If a key message needs to be conveyed about club business, it must be repeated multiple times in multiple communications. Just when you are tired of talking about a subject is when your members are beginning to pay attention.”

Although club members consistently criticize club communications, club leaders consistently put quantity over quality while citing their many attempts to communicate. In most cases, more is not better.

Dillenbeck advises, “The first thing a club can do to manage communications is to develop a Brand Standards Manual.” This document serves as a guide for staff and board members by outlining the overall messages and tone to be used in all internal or external communications. Not only does this help those who may find writing a difficult task, but it also ensures that your messages stay consistent with the image you are projecting of your brand.

With a Brand Standards Manual in place, the board and management team should develop a timeline for communicating with members. “The rule to follow in this regard is to communicate only when there is relevant information to share,” added Dillenbeck. “That means sending a weekly update may not be necessary; rather, every other week may suffice. Otherwise, your messages will be unread.”

One concern many clubs face is measuring the effectiveness of communications. How does one know if members are getting the message? “The most reliable way to track effectiveness is to use an email service that provides data about how many members opened the email, clicked on a link or responded to a question,” stated Dillenbeck. “If the numbers are low, club leaders must ask members why they are not opening the correspondence through intermittent member surveys.

Effective club communications set top-performing boards apart from other well-intentioned club boards. It is said that one should not feed the pigeons because they return wanting more when – in fact – feeding your members a steady diet of interesting and helpful messaging keeps your club relevant in their lives.

This article was written by GGA Partner Henry DeLozier and appeared in the November 16, 2024 edition of BoardRoom Briefs.

 

Strategic Planning that Makes the Difference

Strategic planning has become important in most private clubs, riding the wave of membership growth across the U.S. Long a proven tool for the best-performing private clubs, strategic planning brings intention and clarity to the board’s efforts. Beyond the textbook matters of sound strategy, five strategic priorities have emerged as a part of the novel coronavirus pandemic.

1) Regeneration of Members
Baby boomers have long been the driving force in private clubs. Many are progressively aging out of clubs. The youngest Boomers were born in 1964 and are now 60 years old, while their older siblings—born as early as 1946—are well into their 70s. Boomers are now being replaced by GenX, who range in age from 59 (born in 1965) to 43 (born in 1980). Each group has different needs and wants, requiring understanding the priorities driving the decision to become and remain private club members.

Generation gaps are appearing in clubs where the most tenured members—the oldest by profile—do not wish to pay for capital improvements that younger members consider overdue. Most clubs are working through the generation gaps, and all boards are faced with regenerative choices.

2) New Priorities in Clubs
The new wave of members introduces a regenerative change in clubs’ priorities and needs. Four new-wave points of emphasis in most clubs include:

  • Fresh-air Dining: The onset of the pandemic caused the need for open-air dining options. Members’ preference for fresh air and a sense of openness has persisted. New solutions for window treatments and patio spaces are taking the day.
  • Facilitated Lifestyle: Members require more assistance to enjoy their clubs. Matters such as loading and learning how to use the club app, meeting new members who joined the club during the pandemic, and organizing emerging interest groups now require support from management and staff.
  • Pickleball: Having swept onto the scene as an engaging and highly social activity, new demands for capital and square footage are placing this active adult sport at the forefront.
  • Cyber-Security: Reflecting the world around the club, cyber threats are more prevalent in private clubs. It is time to audit your club’s cyber-security.

3) Investment in Capital Assets
Most clubs have benefited from increased capital funding as new members have restored capital reserves, enabling many to address long-deferred capital needs.

New capital projects are usually funded from Capital Improvement accounts while replacing existing club assets is typically considered Capital Maintenance.

The prevailing trend is catching up on capital maintenance projects – like new roofs, patio upgrades, parking lot resurfacing, and HVAC needs. Capital improvement projects include pickleball courts, swing simulators, sports training technologies, and golf course improvements.

4) Importance of Transparent Governance
In these troubled times, some clubs have begun to act out the behaviors from the evening news…name-calling…stubborn resistance to needed changes…and internal segmentation of member groups. The time for open and transparent governance practices is now. Topmost among the changes coming to club boards:

  • Board Policy Manuals: Use of a BPM has spread actively into private clubs where the backbone of transparent governance is a clearly stated method of governing. The BPM tells members how their board will function and holds boards accountable for their efforts.
  • Diversity and Inclusion: Leading clubs have taken responsibility for making their leadership profiles more diverse and inclusive. Although there is still much to be done, clubs have begun to embrace the tenets of DE&I.
  • Robust Board Communications: Many club boards have increased the frequency and quality of content in their board communications. Members now expect to know what matters are important to their board.

5) New Focus on Brand Management
Clubs are brands, and the most sophisticated board members recognize the necessity of managing the club’s brand proactively and consistently. Many clubs enjoy solid brand ratings but have not understood the importance of intentionally projecting the club’s brand. The evolution of brand management in private clubs requires a thorough understanding of the U.S. Tax Code and the particular club’s obligations therein.

Following these insights as you develop the strategic plan for your club will ensure intention, purpose, and clarity in your efforts to achieve success.

This article was written by GGA Partner Henry DeLozier and appeared in the October 26, 2024 edition of BoardRoom Briefs.

 

Effective Board Orientation

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

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

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

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

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?

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

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

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Download the whitepaper

For more information, please contact us.

Labor, Capital Spending Top 2022 Budgets

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.

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