Not the Time to Wait

Henry DeLozier highlights three important points for club leaders to ramp up club operations and refine their game plan.

When asked what steps they are taking to prepare their business for the post-COVID-19 environment, many small- and medium-sized business owners and managers say they’re taking a “wait-and-see” approach. While that attitude is understandable, with conditions and health and safety guidelines changing by the day, it’s also not advisable.

The more effective strategy is the one that many other businesses are taking to navigate the crisis in creative and productive ways: Anticipating and preparing for a post-COVID-19 business, whenever that may come and whatever it might resemble.

In a wide range of businesses, preemptive leaders are driving revenue through new marketing tactics and sales channels, putting new incentives in place to spur immediate purchasing and capture pent-up demand, moving more of their in-person interactions online, pivoting their business to address new needs and developing new products to position their business when customer demand returns to normal.

Others are enhancing their digital presence by sprucing up their website with new content or fixing online issues for a better customer experience. And many businesses are strategizing by mapping out potential scenarios for the future.

Three important points to consider when ramping up club operations:

1. Update the club’s financial plan.

The business interruption and financial impacts will be profound and may even threaten the club’s existence. The board must reset the club’s financial plan by evaluating the current in-flow of dues revenue and the realistic projection of pending banquet and catering activity. Refer to the club’s historic reference points for revenue as the key component in ramping up successfully. Balance revenue projections with the probable attrition rate caused by members who will leave the club for health and financial reasons.

Look realistically at the club’s expenses and prepare yourself – they will be discouraging. Plan to restart programs and services in a phased manner that focuses on the most popular and engaging programs in the eyes of your members.

It’s important to remember that members may have different priorities in a post-recession world. Knowing what those are through surveys and focus groups is far more advisable than assuming the old normal is also the new normal. Keep in mind that the club may not be able to restart at a level and pace that meets members’ expectations without what may be significant investments.

In a financial sense, the club is starting over financially. This can be good for clubs overloaded with expensive debt since it gives them incentive to renegotiate their debt structure. Interest rates are at historic lows and will remain so for some time. This makes it a good time to restructure the club’s financial plan to remove historic flaws, such as membership-optional communities and outdated governance practices.

2. Strengthen your team.

Every club in your area is being affected differently by the pandemic. Some will retain staff with little change. Others will be forced to reduce operations, programs and staff. Some of your own employees will decide not to return or may be unavailable. Be prepared and recruit aggressively to fill and strengthen key positions on your team. It’s also a good time to review and update personnel records, roles and benefits.

3. Introduce new social programs.

As leaders hit the reset button, remember that private clubs enjoy an emotional relationship with their members far more than a transactional one. When evaluating and creating programs, consider the following:

Members will want to see one another and be seen. There will be a great opportunity for friends to be reunited and reminded that their club is a safe haven for their families and friends.

Look at events that are either successive – where one event sets the stage for the next – or part of a series of similar events. Give members the sense of ongoing relationships rather than one-off types of events.

Host member information exchanges. As members anticipate their clubs reopening, they will have lots of questions, which can be boiled down to “What’s changed – and what hasn’t?” Assemble a team of staff members who constitute the Answers Team.

Get ahead of questions by anticipating as many as you can and communicating the answers widely through email, newsletters and social media.

Creating a Reliable Game Plan

The most effective transitional leaders will be those who can manage information aggressively. Keep your stakeholder groups of members, employees, suppliers, and extended business partners – like bankers and insurance carriers – well-informed.

Your members and stakeholders want information, to be sure. Even more importantly, they want confidence that their club is in steady hands. They want to see evidence – action more so than talk – that the club is taking measured steps and addressing the key strategic issues without distraction with petty short-term matters. This capability requires a reliable game plan.

In May, GGA Partners conducted a series of weekly webinars to help club leaders construct their game plan and illustrate the thought processes that go into reopening and operating again in the wake of COVID-19. The sessions offered a deeper look into these three important points and tactics to prepare for a post-pandemic business environment.

The archive of each webinar and accompanying slide deck (if applicable) are available on CMAA University, complimentary to all CMAA members. Once you are signed in to CMAA University, you can find the recording and accompanying resources under CMAA Member Education, COVID-19 Resources. The content is then organized by topic area, see below for where each of the four webinars are housed:

Crisis Management and Communications

Changing Communications for Changing Times – Linda Dillenbeck & Bennett DeLozier – May 27, 2020

Member Surveys in Uncertain Times – Michael Gregory & Ben Hopkinson – May 20, 2020

Reopening Your Club

Transitional Leadership: Restarting Your Club – Henry DeLozier – May 6, 2020

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This article also featured in Golf Course Industry magazine

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Hiring Staff with Staying Power

Sourcing high quality staff who are in it for the long run is a challenge for all clubs, not least those situated in rural areas. GGA’s George Pinches demonstrates how putting in the hard yards at the point of search can produce the people you are looking for.

1. Talk to us about the current hiring landscape for clubs. Is high staff turnover still an issue?

Staff turnover remains an ever-present burden clubs have to face. One which is costly in both monetary and non-monetary terms.

The difficulty for clubs is the complex nature of the reasons behind the hiring challenges, ranging from:

Economic forces – When recruiting and retaining both management and staff, clubs often come up against macro-economic issues that are beyond the scope of the club to address

Cost of living – In many markets, the high cost of living limits the available staff within the club’s catchment area

Geography – Location and commute-time constraints can often lead to prospective employees seeking out a more practical job opportunity

So, the landscape can be challenging both for the club and for prospective or current employees, with only some of these variables within the club’s control.

2. What issues does this create in relation to morale and sense of identity within a club?

Private clubs are the ultimate in repeat business, so members want to know staff on such a level that staff know their preferences without even needing to ask.

Consistency and recognition are very important aspects of the club experience, and this is greatly hampered by a constant change in club personnel at every level. Managers often find themselves in a position of needing to start from scratch each season – losing the staff morale and good will built up over time.

Retaining club professionals and instructional staff is critical due to the personal nature of their interaction with members and their children. They are a great ‘unifier’ in the club environment across members, staff and the board, and the continuity in these roles is of paramount importance to the mood of the club at any one time.

3. How can clubs experiencing prolonged high staff turnover get themselves out of this cycle? What do they need to do differently?

They can pay attention to the local market and strive to be an employer of choice. While compensation is important, many other factors impact recruitment and retention.

In terms of taking practical steps, start by investing in the current management and staff. Professional development is a key component, regardless of whether an employee eventually leaves. Many private clubs become a sought-after employer because of the people they have produced within that sector.

Second, just as the club uses a member survey to gauge member satisfaction and obtain specific information that is useful in planning, engaging staff through a survey can be just as enlightening. Management, and to a much lesser extent the board, need to hear from the silent majority to understand which initiatives lead to less turnover.

The use of data-driven decision making is just as critical in Human Resource Management as it is in other aspects of club leadership.

4. How much can a robust structure and process help in all of this?

Recruitment and selection must be a structured process. Clubs must take the time to establish well-defined search criteria which clearly reflects the knowledge and experience you seek.

When recruiting for core positions, avoid short-term thinking and think carefully about emerging trends and the skillset you need to face the challenges of the future.

Retention, at the most senior level, involves setting clear expectations in writing with a well-defined monitoring and performance appraisal policy in place. Typically, Boards want accountability, measurable results and consistent results within the club’s unique history, vision, and culture. GM/COO’s want clear expectations in writing, and for their results to be regularly monitored and evaluated.

5. Are there certain measures a club can take to help identify the types of individuals they are looking for? More importantly, the ones who will help achieve a greater level of continuity within the club?

Clubs benefit from attracting and retaining individuals who have decided to make the club industry their career path, individuals who envisage a time when they are leading their own club and are keen to learn and develop. There is always a risk that you will lose that “rising star”, but they will often return when the opportunity presents itself.

How do you find these individuals? Predictive Personality Testing is one tool which helps augment the search process to isolate those with the best behavioral and cognitive fit for your club, later confirmed through a more traditional interview process.

Referrals are another tool for attracting, sourcing and retaining managers and staff. GM/COO’s who are active and networking in the club industry develop a deeper and wider connection with their peers, which can pave the way for referrals and approaches from prospective employees.

Any tactics you deploy in your search will be underpinned by one fundamental component: reputation. The reputation of your club, both from a staff or member perspective will either attract or put off prospective employees. So, think about the influence of online reviews, social media, and other outlets where people are expressing an opinion about your club. Address just criticism through investigation and resolution – this will clearly demonstrate your duty to the club’s stakeholders, build a positive reputation, and appeal to prospective employees who are in it for the long haul.

This article was authored by GGA Director and Club Governance expert George Pinches.

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