Playing the Long Game

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

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

Speaking the New Language of Brands

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

The New Urgency of Strategic Planning

GGA Partners Continues Thought Leadership Series with Four New Whitepapers

‘The New Urgency of Strategic Planning’ Now Available for Download

TORONTO (June 10, 2020) – GGA Partners – international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities – will continue its thought leadership series with the publication of four new whitepapers to help leaders of golf, club, and leisure businesses make better-informed decisions regarding key planning and marketing challenges.  The whitepapers focus on strategic planning, branding, governance, and innovation.

Let’s Face It, Times Are Changing

That may be the understatement of the year.

Between rapidly advancing technology, economic uncertainty, transforming demographic and lifestyle stressors, and a digitally-connected global community, the environment for club and leisure-related businesses is more competitive than ever.

The business landscape is shifting and management stances are evolving, yet the principles of competition endure: one’s gain is another’s loss and the strongest will come out on top.

Knowledge is a tremendous source of strength and GGA Partners is developing authoritative reports on the industry’s most pressing issues and constructing advanced problem-solving guides for the road ahead.

The New Urgency of Strategic Planning

The strategic planning whitepaper, which can now be downloaded from the GGA Partners website, focuses on a misconception regarding the strategic planning process, according to Henry DeLozier, who along with GGA partners Steve Johnston, Rob Hill, Derek Johnston, and Michael Gregory authored the paper.

“Because of its traditional long-range horizons, many club leaders don’t prioritize strategic planning,” DeLozier said. “With conditions inside and outside the club environment changing as quickly as they are, there’s a new urgency to strategic planning.”

In addition, the whitepaper argues for a shorter planning cycle, ranging anywhere from 12 to 24 months, and a closer connection between strategy and execution.

“Businesses that are directly affected by shifts in the economy and consumer preferences should consider shorter planning cycles,” Johnston said.  “Think about it: Would a five-year strategic plan created in 2015 successfully guide your business today?”

Today’s most successful clubs look at their strategic plan as a blueprint for action, Hill added. “They don’t put their plans on a shelf to gather dust. They’re implementing their plans, adjusting as needed and executing their vision for the club.”

For club managers not familiar with the strategic planning process, the whitepaper explains five key steps in developing a plan and draws on examples from inside and outside the private club business.

In addition to strategic planning, other whitepapers in the series focused on branding, governance, and innovation will be published through the third quarter of 2020.  Discover more about the cross-section of high-impact topics GGA Partners is studying at ggapartners.com.

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, visit ggapartners.com.

Media Contact:

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

Millennials & Golf’s Value Proposition

GGA Partners and Nextgengolf Release Findings from Annual Research Study on Millennial Golf Community

Over 1,600 millennial golfers share habits, attitudes, and preferences about golf

TORONTO (June 10, 2020) – In an ongoing research collaboration, Nextgengolf and GGA Partners have released their annual study on the millennial golf community.

Nextgengolf is a growth-of-the-game subsidiary of the PGA of America.  GGA Partners serves as an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities. Together, their report suggests ways golf facilities can adapt and develop their offerings to meet the needs of the next generation of members and customers.

“Not every millennial is the same, but it’s often communicated that way,” said Nextgengolf Director of Operations Matt Weinberger. “In our continuous work with the millennial audience and now Generation Z, we see tremendous opportunity for golf facilities to deliver value to young people, while operating their businesses successfully. The key is understanding how golf businesses mesh with millennial lifestyles.”

Featuring valuable insights about millennial golfers, the challenges they face, and opportunities for facilities to help support the long-term sustainability of the game, the research reveals three overarching observations:

1. The lifestyles of millennial golfers have changed the way they approach, experience and enjoy the game of golf.

Leading fast and casual lives, the millennial concept of “golf lifestyle” is evolving to allow for more flexibility, greater efficiency, a unification of multiple social activities into a single experience, and experimentation with the way the next wave of customers and members engage with the game.

2. Socialization and relationships are important for millennial recruitment and retention.

Millennials typically start playing golf as a result of encouragement from a family member. They primarily continue to play because of their own friendships, using golf as a platform for shared activity and a chance to connect. Family is a huge factor for millennials and will increase in significance, especially as it relates to private club membership.

3. Cost is a major concern for millennials and the biggest barrier for them to play golf.

This is partially due to lifestyle evolution and primarily as a result of funding capability.  The good news is that millennials show strong interest to join private clubs under the “right” fee structure – traditional club membership offerings and conventional fee structures are less appealing to millennials than previous generations.

“When it comes to private club membership, costs continue to be barriers for millennials but there’s a bigger picture at play,” observed GGA Partner Michael Gregory. “While price is important, the best performing clubs are focused on creating an experience that enhances millennials’ lifestyles and develops a sense of emotional connection and belonging.  An experience that also enhances the lifestyles of their family strengthens this connection, elevates the value proposition, and paves the way for greater price elasticity.”

Focused exclusively on an audience of active, avid millennial golfers with prior golf interest and experience in tournaments or golf events, the 2020 study brings forward survey findings from more than 1,650 millennial golfers and builds upon research annually conducted since 2017. To date, more than 5,200 survey responses have been analyzed during the four-year research study.

Details on these findings and more are illustrated throughout the full report, titled “Millennials & Golf’s Value Proposition” and available on the GGA Partners and PGA of America websites.

Click here to see the findings and download the report

 

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, visit ggapartners.com.

About Nextgengolf

Nextgengolf is an inclusive organization with the mission to provide golfing opportunities, keep golfers in the game, and make the game of golf more relevant for high school students, college students, and young adults. Through our NHSGA, NCCGA and City Tour products, we cater to golfers 15-40 years old by proactively keeping golfers engaged through events and bringing new players into the game. In 2019, Nextgengolf was acquired by the PGA of America. For more information, visit nextgengolf.org.

About PGA of America

The PGA of America is one of the world’s largest sports organizations, with nearly 29,000 professionals who daily work to grow interest and participation in the game of golf. For more information about the PGA of America, visit PGA.org, follow @PGAofAmerica on Twitter and find us on Facebook.

 

Contact

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

Michael Abramowitz
PGA of America
561-389-4647
mabramowitz@pgahq.com

Think Big Entering A New Decade

Thinking of big changes in 2020?  Writing for Golf Course Industry Magazine, GGA Partner Henry DeLozier shares four macro changes to consider as the new decade begins.

Golf no longer exists in a vacuum, separate and distinct from market forces that shape other mainstream businesses. Gone are the days when golf club and facility managers could operate without a sensitive finger on the pulse of social, environmental and political changes affecting their business. As we enter the third decade of the 21st century, here are four macro changes to be aware of and to use to your advantage.

1. New solutions to labor shortages

Traditionally, labor costs for golf courses have ranged from 52 to 56 percent of golf course maintenance budgets. With increases in minimum wages and the ripple effect throughout organizational charts, labor costs continue to escalate. Derek Johnston, a partner at Global Golf Advisors, says labor costs have jumped as much as 6 percent.

Operators managed the first wave of escalating labor costs by reducing head counts and outsourcing certain activities to third-party contractors. Now, they are being forced to get more creative to deal with what is by far the facility’s single largest line item. Some have reacted by flattening their org charts, eliminating supervisory positions and restructuring responsibilities for some managers and staffers. As a result, staffing levels that ranged from 19 to 25 employees per 18-hole course are in significant decline.

Labor will remain a primary focus and concern for operators in 2020. Suggestions for managing rising costs are to re-evaluate all operational activities with an eye for possible benefits to be gained from outsourcing; take labor-intensive components of your operation and determine how the work could be accomplished more efficiently; and look at non-golf sectors for solutions being implemented in other fields such as hospitality and manufacturing.

2. Increased environmental awareness

Golf courses throughout North America have embraced opportunities to increase their environmental stewardship. Beekeeping, which sustains the bee population and ensures ongoing pollination; bat houses, which address mosquito infestations; and habitat restoration for butterflies, especially monarchs, whose habitat supports pheasant, quail, waterfowl and many other species; have been introduced at many locales.

Making golf courses and their surrounding grounds environmental sanctuaries is resonating with key market influencers, including millennials and women, who are also prime targets for increasing play and membership. Audubon International CEO Christine Kane reports that clubs as sanctuary communities are on the rise nationwide: “Audubon-recognized sanctuary communities have increased more than 20 percent over the past five years,” according to Kane.

Progressive superintendents and golf managers who expand the reach and impact of their environmental efforts will be viewed favorably by community leaders as well as current and prospective members and customers.

3. Expanded reach of social media

Superintendents and facility managers have become important sources of content relevant to club members and consumers. Photographic images of flora and fauna on club grounds are of interest to members who take pride in their clubs’ beauty and connection to the environment.

Instagram and Twitter can be used to show images sourced by staff members — golf course workers, cooks, janitors, golf professionals — who are alert to opportunities to snap butterfly habitats, wildflowers and all sorts of wildlife that call the club home. Such images are often posted to the club website and distributed to club members and visitors as a means for extending brand engagement.

Gone are the days of the cut-and-paste guidance for how to repair a ball mark. The increased relevance and timeliness of today’s news is attributed to the capability and proliferation of social media.

4. Comprehensive planning

The growth of strategic planning (supported by specialized plans for marketing, communications, finance and membership) is another example of general business’s influence on a more enlightened group of golf managers. Just as most any business relies on a strategic plan to guide its decision-making, golf is recognizing the importance of establishing a clear vision that serves to prioritize programming and investment. Top performers rely on data-based plans to distinguish their facilities not only in overcrowded markets, but also with consumers debating their leisure activities and spending. Those facilities that create market differentiation will prosper in 2020 and beyond.

Folding Multiple Plans Into One

There’s an old saying about plans – more specifically about the lack of a plan: “Without a plan, any path will get you there.” We wholeheartedly agree with that adage, but acknowledge a flip side that raises a question that many diligent planners confront: How to effectively integrate multiple plans into one comprehensive and cohesive plan that guides your overall operation?

The analogy that comes to mind is the challenge facing airlines with thousands of passengers on any given day, each trying to get to his or her destination. The airline has flight plans for hundreds of aircraft and tries to mesh all of those planes and flights into a fairly seamless plan to get you where you want to go. Most days it works, but not without a lot of coordination.

There are three stumbling blocks that derail effective planning efforts: 1) lack of coordination among stakeholders and contributors, 2) poor scheduling and time management for due diligence and preparing materials, and 3) confused or confusing desired results. These three project killers diminish the quality of the overall plan and undermine the credibility of the planning team.

For golf course and facility leaders, the challenge is considering the information gathered through market analysis, financial evaluation and board input alongside the plans of superintendents and those managing food and beverage, membership and financial operations. And then bringing all the information, insights, recommendations and plans together to support the club’s or facility’s objectives. For managers of each of these functions, the same challenges exist, if only on a smaller scale.

If you’re currently in your planning cycle, and charged with pulling discrete plans and input together so the end product doesn’t feel disjointed, consider these five steps:

1. Sync every plan to the vision.

No matter which area of the club or facility the plan is focused on, it should clearly map to the overall vision – the club or facility’s long-term, forward-looking aspiration, what we like to think of as an organization’s North Star. You should be able to see this in the plan’s objectives and priorities. With multiple workflows, the project leader must maintain an overall understanding of the project and ensure all plans are headed for the same airport, even if they’re taking different runways.

2. Outline specific steps along the way.

Define project milestones, the steps that will help you get there at a predetermined time and those responsible. Schedule regular check-in meetings to make sure all pilots have their planes headed in the same direction. It’s much easier to make mid-course corrections than to wait until all planes have landed and plans submitted.

3. Designate one holding place for project inputs and research.

See that all team members participating in the project planning process have transparent access to information and a full understanding of progress. Lacking a central repository of project information, important pieces of information can be misplaced, overlooked or lost. This also helps projects from getting siloed and managers feeling isolated.

4. Prioritize workflow.

On expansive projects or ones that involve multiple contributors, establish which components are most critical to the overall project plan. This step enables effective planners to allocate time, financial and human resources. Sequential planning guides the team in accomplishing mission-critical tasks and components.

5. Maximize productivity through careful scheduling.

If a golf course superintendent is preparing an agronomic plan, for example, it is important to make sure each assistant and technical expert is scheduled to deliver information in a timely manner. Stagger the timelines, monitor the cross-disciplinary dependencies, and eliminate duplications and redundant production.

Most managers have broad responsibilities and must combine resources to produce comprehensive and workable plans. Developing a disciplined process for research, input and development is the key to successfully landing all of your plans and making sure they support the same vision and goals.

This article was authored by GGA Partner Henry DeLozier for Golf Course Industry Magazine

Gauging the Impact of Private Club Trends: 2019 Update

In its recent research collaboration with Michael Leemhuis, a change leader and manager extraordinaire, GGA executed its 2019 attitudinal survey of club managers and thought-leaders.  Since its inception, the study has been repeated every three years to monitor, measure, and update the evolution of trends which are having the most significant impact on private clubs.

Read about top line trends and download the summary whitepaper below.

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This research whitepaper was developed by Global Golf Advisors in a continuation of insights pioneered by GGA Director Fred Laughlin and Michael Leemhuis, Managing Director of The Collection Clubs. 

Focus on Planning, Not Plans

Gen. Dwight D. Eisenhower, who served as Supreme Commander of the Allied Forces in Europe and planned the successful invasions of North Africa, France and Germany during World War II, didn’t put much stock in plans.

“Plans are nothing,” Ike once said. Planning, however, was an entirely different matter for the man who would become our nation’s 34th president. He believed “planning is everything.” In other words, the value really derives from the disciplined process that produces the plan. Furthermore, a plan that has not been preceded by sufficient planning may not get you where you want to go.

Are you planning for the future of your facility or club in ways that produce the right plans to guide your actions? Before you try to jump to the final product (the plan), consider a few basic but critical planning steps.

Agronomic Planning. Many states in the U.S. and most Canadian provinces have begun the progressive reduction of pesticides on golf courses and sports fields. Is your course anticipating the almost certain changes that are coming? Your planning process also should address water and water-taking, fertility, pesticides and chemical use and storage, tree replacement and removal, mechanical care and upkeep of maintenance equipment, and employee training and development.

Capital Improvement and Investment Planning. Golf courses and private clubs have insatiable appetites for capital. As a result, clubs must maintain a robust and thorough roster of capital assets, ranging from community infrastructure and buildings to rolling stock and maintenance equipment to furniture, fixtures and equipment.

Typically, capital and investment plans are the work of the controller and the finance committee. But expansive-thinking clubs also include in the process management, staff and the people who actually use and operate the capital assets. The more inputs provided to the capital asset roster, the better the eventual capital plan. The controller should issue clear and unequivocal guidance concerning the active definition of capital assets to ensure board-based understanding and compliance.

When planning for future capital needs, take into account: capital items owned by the club; standard useful life estimates (available through the American Institute of Certified Public Accountants); life-cycle projections for golf course assets, including greens, tees, sand bunkers, irrigation systems and drainage (available through the American Society of Certified Golf Architects); and actual standard unit counts of assets to ensure alignment with utilization needs and patterns.

Crisis Planning. What happens in the event of a disastrous or tragic event at your club? What specific actions should employees take, and in which priority order? Which staff members are authorized to contact and deal with police, emergency responders and fire departments? Who contacts the insurer? Who drafts responses to media questions and acts as a spokesperson for the club? Who manages the subsequent media cycles? All of these questions should be anticipated and answered during a detailed planning process and obviously before any crisis.

Resources in answering these questions include your insurance carrier and agent, local public services of fire, health and public safety, and experts available through major professional associations such as CMAA, GCSAA and PGA.

Marketing Planning. One of the regrettable truths revealed by the Great Recession is that most golf courses and private clubs do not understand their markets well enough to inform their most critical decision making. Few conduct a business-like market analysis of existing customers and prospective market segments outside of the front gate.

Lacking a thorough and current understanding of their markets, most clubs execute misdirected, ineffective and potentially costly marketing efforts. Top-performing clubs have studied and measured their market areas. Among other benefits, this research helps them understand feeder markets (which may be out of state and beyond) that can sustain growth and reliable financial performance.

Armed with the information uncovered during the planning process, you now have the ingredients of a comprehensive business plan which supports your overall strategic plan. While he may not salute your plan, Ike would surely be impressed with the hard work and critical thinking that produced it.

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

State of the Industry 2018: GGA Optimistic on Golf’s Future

GGA Partner and Principal Henry DeLozier was asked to weigh in on the future of golf as part of Golf Course Industry Magazine’s annual state of the industry piece, titled this year “State of the Industry 2018: The Great Reinvestment“.

Despite the industry’s cuts, closures, and tumbles, DeLozier and Global Golf Advisors remain optimistic about the future of golf and its career potential, “We are in a bull market. The stock market is frequently setting records that have never been imagined before. The growing economy is causing everyone to feel more positive and more optimistic, it’s causing more membership, more participation. The downside of that is that with the unemployment figure down, it’s harder to find labor and, therefore, you have to pay them more. We’re seeing both sides of that.

According to DeLozier, 2018 presents both opportunities and challenges for golf:

  • Development – “I think 2018 is going to be a great year for golf course architects and builders.
  • Reinvestment – “Competitive desires spur enhancements among the top 25 percent of clubs.
  • Accessibility – “The industry can grow without expanding its customer base because mobile jobs that can be performed anywhere, including on a golf course, shrink the separation between work and recreation.
  • Wage Increases – “I think labor costs are going to [increase decidedly] up 6 to 7 percent in the golf business – and that’s if you can get workers.

Learn the context of these excerpts and more in the full article available at Golf Course Industry Magazine.

This article was written for and published by Golf Course Industry Magazine by GGA Partner Henry Delozier.

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