Tag: henry delozier

2021 Predictions on the Shape of the Next Normal

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When we were introduced to COVID-19 in March 2020, no one had any indication that ten months later the number of cases and its toll on society would continue to rise. The introduction of a vaccine is promising, but the road ahead remains filled with uncertainty as to when the next normal will arrive – and what shape that normal will adopt.

Since its inception, GGA Partners has traveled the globe working with private clubs, golf courses, investors, real estate developers, resorts, municipalities, and financial institutions. This has provided unique insight into the state of golf, private club, and leisure businesses from many different perspectives.

We have observed that even before the coronavirus pandemic, significant change was underway across the private club landscape. As we prepare for the “new normal” the thought leaders at GGA sat down to predict what they believe is coming in 2021 and beyond.

1. COVID-19 accelerates change already afoot in governance

According to Senior Partner Henry DeLozier, the change brought on by the pandemic is going to necessitate even more rapid change in governance, which GGA has seen clubs struggle with this past year.

“In corporate America, the concept of stakeholder capitalism was at the forefront in 2020 and that has transcended to the private club space,” commented DeLozier. “We’re hearing members across the private club spectrum questioning why they do not have a larger voice in their club and how board selections, as well as decisions, are being made.”

Private clubs that do not have current and effective governance will suffer from decreased member satisfaction and a constant churn of its membership base.

2. The capability to communicate effectively and efficiently will be key

Linda Dillenbeck, GGA’s director for the firm’s communications practice, stated that there continues to be a need to assist clubs in their efforts to communicate effectively and efficiently.

“It is basic human nature that people do not like change,” said Dillenbeck. “To minimize the disruption of pending changes, it is incumbent upon the management team and board of directors to clearly communicate the what, how, and why of their decisions then allow members to voice their opinions. This provides the level of two-way communication members are demanding.”

In addition to communications about club finances and capital improvements, clubs need to improve the use of the data they have collected to provide tailored communications to members. For example, notices about evolving restrictions on golf events should only be sent to those who play and those about activities for families with children don’t need to be sent to empty nesters.

Beyond member communications, clubs that will be successful in 2021 will be those which can retool and refine their external communications to ensure the message of what truly makes the club unique is presented clearly.

3. Greater work flexibility will impact club utilization in new and challenging ways

Report after report has trumpeted the tremendous increase in rounds played during the pandemic. According to GGA Director John Strawn, that is in large part due to work-from-home adaptations which are providing greater flexibility in how and when employees complete their daily tasks.

“People have more control over their work lives,” said Strawn. “Golf experienced fewer restrictions during the pandemic and that has brought out many new and fringe players leading to full tee sheets at both private and public golf courses.”

Full tee sheets are causing negative feedback from those who play more frequently as there is a belief that those not paying full dues are taking coveted tee times. To solve the problem, Strawn predicts clubs will need to revisit their strategies and ultimately their business models more frequently to ensure they are meeting this new and different demand effectively. Flexibility will be critical until the long-term impact on golf demand is better understood.

While clubs continue struggling to ensure fair and equitable access to the tee or courts while accommodating increased demand, Senior Associate Andrew Milne added that clubs should expect that best practice solutions may shift regarding reservations and tee sheet management to include lottery systems and Chelsea systems to ensure dissatisfaction among members is minimized. Understanding that new reservation management approaches may change the value proposition for members, a clear plan and message acknowledging this, and for measuring and adapting the approach as the future becomes clearer, will be important.

4. Clubs must better understand what women want from their club

According to the National Golf Foundation, while only one in five golfers are women, females represent a disproportionately higher percentage of beginners (31%).

Women ease into the game for a variety of reasons; to spend time with their family, to compete, to be outdoors, and to enjoy the support, community, and socialization. As these women age and consider joining a club, they will choose the clubs that shape programs, staff, activities, and offerings to blend the female competitive group with the group that is more interested in the social community.

“We’ve known for some time just how important the role of women and the family dynamic is regarding the decision on whether to join a private club,” commented GGA Director Murray Blair. “For clubs to succeed in 2021 and beyond, they will need to understand how women are impacting the decision-making process and implement the necessary adjustments to make them feel welcome, whether they play golf or not.”

5. Operational efficiencies gained during the pandemic will carry forward in 2021, and their challenges will too

Among the most remarkable takeaways from 2020 was the ability for clubs to adapt their operations and service offerings swiftly and effectively in the face of facility closures, variable human resource availability, and rapidly changing restrictions for public health and safety.

Contactless payments, varying tee time intervals, and pace dispersion tactics are pandemic-inspired efficiencies which GGA Associate Andrew Johnson predicts will continue.

Adding to the list, GGA Director Ben Hopkinson expects clubs will become more efficient at managing grab-and-go meals, take-out dining, and mobile ordering, following the best practices of companies like Uber Eats and DoorDash.

New ways of operating have also brought about new challenges, some of which will persist into 2021 and require even more new solutions to be generated at clubs and courses.

GGA Senior Associate Andrew Johnson expects that the increased costs associated with COVID-19 mandated protocols such as labor for sanitation and cleaning, as well as elevated maintenance expenses due to increased rounds, will remain through 2021.

Clubs that effectively determine what increased interest and golf participation means for facility accessibility, program creation, membership categories and associated privileges will find increased membership satisfaction and interest from new prospects.

6. The pandemic’s impact on club finances will remain uncertain, expect to see more measurement, flexibility, and experimentation

Despite successful adaptations in club operations and economic relief opportunities afforded by governments and municipalities, the full extent of the pandemic’s economic impact will remain varied across club types depending on business structures and market areas.

GGA Senior Manager Martin Tzankov, remains concerned about the financial position of many clubs and believes the brunt of the economic impact has yet to be seen.

“The reliance of clubs on dues increases and capital assessments has been particularly apparent this year and may have stretched the value proposition too far for some,” stated Tzankov.  “2021 will show the clubs where a clear and present value proposition is being presented to members, who in turn, will continue to pay the cost of belonging.”

GGA Partner Derek Johnston believes there are clubs that will be able to increase pricing and sustain the increases in the long-term and there are clubs that will overshoot the mark. Johnston expressed concern that some clubs may move joining fees too high, too fast; golf businesses may move their green fees too high, too fast; and some may move away from tee sheet management practices too quickly.

“Nobody knows what’s coming.  If clubs have experienced less attrition than in the past, it may be due to members being unwilling to give up their safe sanctuary, but when things begin to stabilize post-vaccine that may not persist,” he explained.  “I believe that a portion of the historical attrition hasn’t been abated, just held back.  There will be increased attrition over the next 12-24 months and there may not be the same demand there to replace those who leave, especially as other social and lifestyle pursuits become more widely available again.”

2021 will be a time for clubs to experiment.  A measured, flexible approach to joining fees and dues will be a prudent approach this year.

7. A club’s success will in part be driven by its sum of parts in 2021

Craig Johnston, a partner and head of GGA’s transaction advisory practice, emphasized that the success of clubs during and following the pandemic will in part be driven by its sum of parts. Johnston explained “A private club may include a fitness center, retail store, several restaurants, a golf course, and a marina. The pandemic has impacted the utilization and thus success of all those ‘parts’ differently, and therefore the overall success of the club will largely be dependent on the club’s product or shall we say parts mix.”

“Every club is going to be different depending on its type of business and the operations which comprise it, the extent and variability of pandemic-related changes means that comparatives are going to need to be refined,” continued Johnston.  “Clubs that understand and appreciate the challenges and successes of the various parts of their business will be in a better position to realign and optimize heading into the ‘new normal’.”

8. The movement of people and relocation of companies will reshape markets

Our news feeds have been full of stories about high-profile people and companies moving out of California into Texas, as well as the movement of bankers to Florida from New York. If looking at this as a trend, you might imagine seeing increased need and greater attrition among clubs in the California and New York markets and, conversely, excess demand for clubs in markets like Texas and Florida.

According to GGA Manager Alison Corner, it will be important for clubs to understand the movement of people – not just the movement away from major urban centers and into the suburbs, but also the movement of companies and the actual physical locations of corporations – because they may have drastic impacts to how certain club and leisure businesses perform over the next 5 – 10 years.

Clubs that are mindful of these relocation trends will help themselves to recognize and either seize new opportunities, or mitigate future risks.

What Are You Doing to Develop Future Leaders?

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One of the most important responsibilities for managers is developing the next generation of leaders and preparing them for the professional challenges they will face. The most obvious way to develop leadership qualities is simply to pay your knowledge forward by identifying the most important lessons you’ve learned — often the hard way — and passing them on to your team.

That responsibility starts with acknowledging that agronomic knowledge is simply table stakes. Knowing how to grow turf and keep it healthy is expected of anyone in the superintendent role, and most up-and-coming turf managers come to the job well prepared. GCSAA educational programs and the generous teaching of consulting specialists and suppliers go a long way in helping to lay this foundation. Certainly, the college of hard knocks provides its lessons as well.

But what lessons will you teach your assistants and crew members? And how can you help prepare them for their next opportunity to move into more responsible positions? In addition to making yourself available as a mentor, you can also broaden your own knowledge by paying attention to what your most respected peers consider their priorities. Here are suggestions from two of the best in the business.

Bill Cygan is the exceptional young superintendent at Silver Spring Country Club in Ridgefield, Connecticut. After graduating from the University of Massachusetts-Amherst, Bill spent six years as an assistant at Innis Arden Golf Club in Greenwich and another six years caring for the West Course at Winged Foot.

Build strong relationships and communicate often.

“This is not easy and doesn’t happen overnight, but the stronger your relationships are at the club, the smoother the ride will be, especially during times of adversity,” Bill says. “Relationship building should include department managers — especially the golf pro, controller and general manager — as well as certain key members of the club, including the green chairman and treasurer, who can be important allies.”

Trust your teammates.

In addition to the administrative leaders with whom a successful superintendent works, Bill adds, “Be sure to build a strong team responsible for the daily golf course maintenance operations.” The strength of the team is your strength.

Carlos Arraya, the assistant general manager at Bellerive Country Club in St. Louis, began his career as a golf course superintendent and over two decades has grown into a key leadership position at one of America’s finest clubs, having hosted the 100th PGA Championship in 2019. Carlos teaches several key points of focus:

Lead the way.

“Understand your leadership style and voice,” he says, adding that managers who favorably influence the next generation of leaders practice mindfulness, leaving their ego at the shop door, putting the interests and needs of their crew ahead of their own and recognizing a job well done. Further, he recommends continue evolving as a leader to best handle the needs of a changing workforce.

Be present.

Some managers are overly focused on the next job, but Carlos counsels: “Focus on being great in your current role.” One can never know too much; by the same token, one can never know everything, so don’t pretend that you do.

Hone your own character.

Superintendents and managers of all descriptions work in the proverbial glass house. The key to being effective at each level is understanding that one is setting an example for others up and down the organizational chart. “Know the difference between an excuse and a reason,” he says. “And don’t fall into the trap of professional jealousy.”

Rely on science.

“(Superintendents) are trained in the scientific method. But sometimes we overreact and are too quick to make a decision,” he says. Club and course managers can pressure superintendents, especially when times are tough, to have immediate answers. “Be deliberate, rely on the science.”

Developing young people into experienced and highly effective crew members, ones who will one day lead their own operations, is one of the most important jobs of any superintendent. And only when you lose some of your best people, when they move on to the top job at another club or course, you will know that you’ve been successful.

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

What’s Next Rests in Your Hands

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Every superintendent’s hands tell a story. Tough as worn boot leather, marked with the scars of the trade, a superintendent’s hands are testament to long days and honest work that never seems to end. Their hands groom and maintain the course and grounds that are an owner’s most valuable asset while holding the employment and income stability for their crews.

By all accounts, a superintendent’s hands shape the future. That’s as true with the things that are visible — tee boxes, fairways and greens — as those that are not, namely the meticulous plans that support every aspect of an agronomic program. How do the best superintendents plan for the future? They start with three basics:

1. An overall plan for their work.

The overall plan for the care and upkeep of your course establishes the standards of excellence by which you should be measured. The agronomic plan describes your cultural practices for the basics and should include detailed descriptions of fertility, irrigation, labor, arboreal and the sub-plans that support each of those major pillars.

Plan so that you can make your agronomic plan an educational and informational guide that uses photographs and narrated video to keep your owner, board and greens committee well-informed. In addition to setting standards, your agronomic plan is a great opportunity for you to teach key stakeholders what they should expect of you and your team.

2. A comprehensive communications plan.

Once your agronomic plan — together with its supporting details and sub-plans — is established and approved, it’s time to implement your communications plan. Target all stakeholders — your team, the rest of the management staff and your golfers — to help everyone understand your plan of action. This is not a time to seek permission. This is the time to demonstrate your knowledge, experience and expertise.

Set a schedule for your messaging and meet it. Use multiple media to deliver the message — video, brief written descriptions and small-group field days, when you take members onto the course to demonstrate how your programs are being executed.

Some superintendents become victim to overpromising details and conditions that cannot be delivered. Be alert and carefully describe what you will accomplish. By the same token, do not understate the value of your efforts. This is no game for sandbaggers. Demonstrate your professionalism and capabilities with clear-cut descriptions of who you are, what your team goals are and how the goals will be successfully achieved. Show what features you will emphasize on the course and explain the benefits of each element of your strategy.

3. A self-improvement plan.

GCSAA provides countless opportunities for superintendents to stay current on science and technology and to learn about new trends. The most respected and rewarded superintendents also seek out opportunities — and a regimen — for self-improvement. Here are a handful of keys for improving your own capabilities:

  • Read more. Leaders in every field are readers who continually gather more information that bolsters insight and wisdom.
  • Get fit. The pressures that come with the job and the common inclination to treat oneself well when one feels overlooked or unappreciated combine to add weight, cholesterol and risk to your well-being. Get in shape and stay there.
  • Identify and address blind spots. What do you overlook or consider to be inconsequential? Which people or circumstances trigger frustrations during your day? The better you identify threats to your overall view of your world, the better you will navigate unexpected events.
  • Live with BHAGS. Set big, hairy, audacious goals for yourself and your crew. The bigger your dreams, the more fun it is when you make them real.
  • Avoid negative people. Their attitudes can be contagious and poison morale. Build your network around positive people who inspire you and bring out innovative thinking and your best work.

Superintendents hold in their hands the franchise value of their course. Describe your plan to make it even better. Communicate your plans clearly and honestly. And never stop making yourself an even more valuable professional.

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

Constantly Thinking About Budgets

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With most 2021 budgets prepared and submitted, many golf course superintendents and their managers are reviewing and updating agronomic plans for the coming year. A sound agronomic plan is a living document that must anticipate upcoming conditions and respond to emerging circumstances. In volatile times, certain constants must be considered. Let’s evaluate some of those constants in the context of today’s conditions and challenges and see how they might affect budgets.

Constants

Certain irrevocable factors influence the proper care and upkeep of golf facilities with budgets leading the list. Your budget is the mathematical “North Star” on which you steer your performance. It’s also a measure of your intentions. One superintendent summarized his budget by saying, “You can run but cannot hide from your budget, so you might as well pick it up and run with it.” In other words, dig into the process and learn to deal with the variables.

For 2021, here are several budget guidelines to understand:

  • Most planners expect a choppy year ahead. Set aside funds for the unexpected events that will emerge and keep your powder dry.
  • Plan for three categories of expense. Fixed expenses for such budget overhead requirements as utilities and equipment leases are unlikely to change, although careful budget managers ask for relief on such fixed costs through abatements or forgiveness that may help to stretch budgeted resources. Second, labor costs will ebb and flow as impacts from COVID-19 and closures of club facilities will place irregular demands on labor dollars. Give yourself some room to maneuver. Third, discretionary needs will emerge as fellow managers and golfers seek new solutions to new problems. So be prepared.
  • New ideas and methods introduce new solutions for labor and overhead costs. Be alert and watch for new and innovative possibilities that make your work eventful and add purpose to your accomplishments.
  • Changing weather patterns demand that golf course operators become better informed and more proactive in planning care and upkeep practices. While much of your work is influenced by changing weather conditions, superintendents know to rely on the National Oceanic and Atmospheric Administration for accurate weather pattern forecasts that help them more accurately plan and schedule their maintenance practices.
  • Golfers’ expectations continue to escalate. You can count on golfers wanting “more and better,” which means course managers are always searching for process and results improvements. For 2021, golfers’ expectations include enhanced sanitation and clearing of on-course comfort stations, golf carts and practice range equipment. Next year will demand sustainable care and upkeep standards despite irregular resources that may be interrupted by supply chain and budgetary limitations.

Upcoming Conditions

Course managers must anticipate changes being introduced for labor management and workers’ expectations. Such changes as reducing the number of workers exposed to one another is requiring managers to divide crews and adjust shifts. Your team’s protection is vital.

Changing climatic circumstances requires enhanced emergency preparations. Consider your clean-air, fire and immediate-notice evacuation plans for workers and affiliated departments. Your liability insurance carriers are a good starting point for collecting guidance, as are emergency preparedness agencies in your vicinity.

Emerging Circumstances

Develop your short list of resources on which you will draw for new threats and opportunities. The Centers for Disease Control and Prevention and the National Institutes of Health are examples of resources on which you can rely. The coming year will reveal new problems, challenges and circumstances with which golf course managers must reckon.

Emergency services professionals, such as your local health care, water supply and cyber-security experts, are valuable resources on which you can call. Beyond your club’s insurer, call on fire and police experts to provide guidance in planning ahead.

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

Playing the Long Game

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How do you plan for the future when the ground is shifting beneath your feet? When every day seems to bring a new forecast about the health of our fellow citizens, our economy and our environment?

The answer is simple for some. They’ll simply turn away from long-term opportunities and challenges while taking refuge in what seems slightly less murky: tomorrow, next week or next month.

That approach may feel safe, but it’s not what your board or your ownership expect. They hired you to be the long-term caretaker of their clubs and facilities and the guardian of their relationships with loyal members and customers. They expect someone in your position to have a plan, not only for getting through our current mess, but also for positioning the business for success well into the future.

So, what are those kinds of leaders doing to prepare? Our observations suggest five things at the top of their lists.

1. They’re looking ahead … way ahead.

Some economists predict that the U.S. economy will not return to pre-pandemic levels until 2023. That means visionary facility managers and club leaders of every description should be looking not only around the corner, but also over the horizon to get ready for a post-pandemic world. Those leaders see things differently.

  • They see opportunity rising out of increasing golfer participation, as families and friends view golf courses as a primary platform for socialization and outdoor exercise.
  • They see increasing outdoor dining options, where picnicking, farm baskets and patio-dining alternatives are meeting the need for socially distanced outings.
  • With high unemployment levels, they see opportunities to upgrade their staff’s performance and service levels.

2. They’re taking care of their people.

In several recent national polls, including Gallup and Harris, a strong majority of employees say they feel their employer is looking out for their best interests. (Similarly, a survey of private club members in the U.S. and Canada conducted by our firm found that members feel highly positive about the performance of their clubs throughout the coronavirus crisis.)

It’s easy to show your team members that you care for their well-being and that you respect their dedication during difficult times. You can write a personal note of thanks and invite them into your office for a conversation and remind them of their importance. You can encourage them to bring their family to the course as part of “family day.”

Your best people are your most important asset. You’ll need them prepared and energized to lead your business into the future.

3. They’re aware of shifting market conditions.

External influences are changing our views on leisure activities and disposable income. It’s critical that club leaders understand the unbiased and unvarnished trends influencing golf.

In the GGA Partners’ survey, roughly four in five members reported either an increase in importance or no change in the club’s importance in their lives. However, survey respondents were not optimistic about their club’s financial position. Seventy-one percent expect a decline in the financial health of their club. Fifty percent cited current economic conditions and 42% said a decline in member spending would lead to the decline, which 20% predicted would be “significant.”

A surge in golfer participation that many courses have enjoyed in the past several months should not be construed as a guarantee of future success. When there are few other distractions, golf is proving a popular, socially distanced alternative entertainment. But leaders planning for the long term are taking nothing for granted and shoring up service levels to make sure they continue to deliver unquestioned value.

4. They’re realistic and preemptive.

Hopefully, an approved coronavirus vaccine will be rolled out soon. If an approved vaccine is delayed, however, progressive leaders have contingency plans. For golf superintendents, club managers and other leaders, realistic planning requires careful review of revenue capabilities and overhead arising from on-going operational costs.

Here are some steps to take in preparing for 2021:

  • Review your staffing model and search for efficiencies. Now may be time to update and refine your organization of management, taking into account changing attitudes about work/life balance.
  • Re-think your plan of work model. Perhaps mowing in the afternoons opens up desirable morning tee times and makes your work on less crowded fairways more efficient. Likewise, evaluate work such as tree trimming and bulk clean-up and consider outsourcing or moving such projects to the off-season.
  • Monitor inventory levels. There is no need for a full fuel storage tank during the off-season, for example. Procure what you will use more efficiently.

5. They’re planning on success.

Imagine your facility on its best day ever. You and your team make those days happen when you dream big and work toward a future that delivers the best of your talents and imagination. Don’t be shy. You can be realistic while also making sure your plans include a few “shoot the moon” and BHAG (big, hairy, audacious goals) aspirations.

Dramatic and unpredictable times like those we’re living in create multiple challenges that can seem daunting. But they also bring out the best in those who plan for success.

This article was authored by Henry DeLozier for Golf Course Industry magazine.  Henry returned GCI’s Beyond the Page podcast to discuss long-range planning in a conversation with Golf Course Industry managing editor Matt LaWell. Listen to the playback below and visit the GCI website to subscribe to the Beyond the Page podcast.

 

(16-minute listen, 02:30-18:50)

Leveraging Differences in the Boardroom

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GGA Partners Releases New Whitepaper on Private Club Governance as Part of Thought Leadership Series

‘Leveraging Differences in the Boardroom’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Leveraging Differences in the Boardroom, the third in its new series of thought leadership whitepapers. This authoritative guide explores the benefits of clubs with diverse boards and suggests several steps to take when recruiting with diversity in mind.

Leveraging Differences in the Boardroom evaluates the consequences of unintentionally insular board composition and challenges the idea of “sameness” in the boardroom, which limits the ability of a board to effectively perform its duties and threatens a club’s health and longevity. The paper illustrates how multiple perspectives contribute to greater success in governance and argues for adjusting the profile of a club’s leadership to better serve members and prospects.

“We often see board members with similar professional, cultural, and ideological backgrounds and perspectives,” explained GGA Partner Henry DeLozier, one of several authors of the piece. “Boards that are neither representative of the membership nor reflective of their surrounding community risk losing the opportunity both to serve their current members and to attract new members.”

In addition, the whitepaper encourages that clubs intent on increasing diversity among their board take a holistic, multi-dimensional approach to its creation. “Forward-thinking boards understand that it is the breadth of perspective, not the mere inclusion of various diverse traits, that benefits the organization,” said DeLozier. “In addition to social diversity, professional and experiential diversity are also important in increasing the range of perspectives represented on the board.”

Board diversification is likely to be met with resistance from the status quo, which the paper aims to help club leaders overcome by providing tactics for building a diverse board, developing new board member criteria, and making a commitment to diversity.

In addition to governance, GGA Partners recently published new whitepapers on strategic planning and branding. The firm has announced that another in the series focused on innovation will be published through the third quarter of 2020.

Click here to download the 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

Members Worried About Their Club’s Financial Health; Say Their Return Contingent on Safe Conditions

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Members Worried About Their Club’s Financial Health;
Say Their Return Contingent on Safe Conditions

TORONTO (August 11, 2020) – Private club members are worried about their club’s financial well-being in the aftermath of the global pandemic, and only 27% expect operations to revert to the way they were before the challenges imposed by the coronavirus.  But most say they will retain their membership if their club holds the line on dues increases, maintains the quality of its facilities, and makes returning to the club safe for themselves and their families.

Those were among the findings of a survey of private golf club members conducted by GGA Partners, an international consulting firm and advisor to many of the world’s most successful golf courses, private clubs, resorts and residential communities.  The study was conducted among members of U.S. and Canadian private clubs with survey participants averaging 12 years of club membership.

Survey respondents were not optimistic about their club’s financial position with 71% saying they expect a decline in the financial health of their club. Fifty percent cited current economic conditions and 42% said a drop in member spending would lead to the decline, which 20% predicted would be “significant.”

In response to downward financial pressures, members expect their clubs to adapt operationally rather than financially by scaling back high-touch areas of operations to simultaneously reduce operating costs and lower the risk of COVID-19 transmission.

Rather than increasing revenue through dues or membership growth, almost three-quarters of members would prefer their club make near-term, operational changes – including reducing dining operations (61%) and administrative expenses.

Despite the multiple ways their lives have been affected by the pandemic, roughly four in five members report either an increase in importance or no change in the club’s importance in their lives. Friendships, the quality of amenities and recreational activities were cited as factors driving the club’s importance. Twenty-one percent say the club’s importance has diminished because of the pandemic.

“The COVID-19 pandemic has not negatively impacted the relevance of the club in the lives of most private club members.  If anything, its importance has been reinforced,” said Henry DeLozier, a partner in the Toronto-based firm.  “Together these results suggest that the importance and relevance of their club experience are strengthened during emotionally challenging times.”

When asked how they would (or have) approached returning to their club in the wake of the coronavirus, 39% said they would (or have) returned without any restrictions imposed by the club.  However, 61% said their return was contingent on certain conditions: 50% said they would return if social distancing was maintained and government guidelines enforced; 11% were more hesitant, saying they would not return until the club had been operational “without issues” for a trial period or until rigorous virus testing capabilities were implemented or a vaccine were available.

Members said they also would consider leaving their clubs if dues increases exceeded typical annual hikes (50%) and the club’s facilities deteriorated (41%).

“The good news for club operators is that scaling back operations, reducing services and limiting access to amenities and activities – essential maneuvers to safely and responsibly navigate a virus-plagued social environment – are unlikely to cause significant membership attrition,” DeLozier said.

 

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.

 

Contact

Henry DeLozier
Partner, GGA Partners
602-739-0488
henry.delozier@ggapartners.com

Rob Hill
Partner, GGA Partners
+353 86 68 12 744
rob.hill@ggapartners.com

Practice Areas and the Pandemic

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

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

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

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

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

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

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

Know your customer.

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

Don’t get sloppy.

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

Make it fun.

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

Keep your superintendent in the loop.

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

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

Speaking the New Language of Brands

Date:

GGA Partners Releases New Whitepaper on Private Club Branding as Part of Thought Leadership Series

‘Speaking the New Language of Brands’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Speaking the New Language of Brands, the second in its new series of thought leadership whitepapers.  This authoritative guide redefines a traditional brand value equation and illustrates how adding emotion and experience to a private club’s brand story will increase its value with members.

Speaking the New Language of Brands highlights ways iconic “mega-brands” mold, define, and advance their organizational identity toward the goal of influencing consumer purchasing decisions.  The paper evaluates a traditional outlook on the brand value equation and asserts a redefinition which paves the way to enhanced value perceptions among private club members.

“Traditionally, the key to building value in the eyes of the consumer has been demonstrated in a simple equation, where perceived value is equal to performance divided by price,” explained Henry DeLozier, one of several authors of the piece. “We believe there is a far more effective – and cost efficient – way to increase the value members place in your club and in your brand. It’s by introducing emotion and experience into the equation.”

In addition, the whitepaper argues that a successful branding program is based on the idea of “singularity” and should be designed with differentiation as the primary goal.  “Harkening to the days of the Old West, a branding program should differentiate your cow from all of the other cattle on the range,” said DeLozier.  In other words, creating in the mind of a member or prospective member the belief that there is no other club on the market quite like your club.

Building a brand is easier said than done.  For club managers not familiar with the brand development process, the whitepaper explains six essential steps for clubs to follow when constructing their brand and draws on examples from inside and outside the private club business.

In addition to branding, GGA Partners recently published a new strategic planning whitepaper and has confirmed that others in the series focused on governance and innovation will be published through the third quarter of 2020.

Click here to download the 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

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