Tag: insight

Board Room Best Practices

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In partnership with the National Club Association (NCA), we are pleased to release the inaugural issue of Club Governance, a publication focused on the fundamentals for effective club leadership developed to provide key insights into pressing board room issues and outline board room best practices to effectively govern your club.

In our inaugural issue, Henry DeLozier and GGA’s governance expert Fred Laughlin, discuss the following topics:

Three Keys to Effective Governance: Who Serves on the Club Board?

A Model for Club Governance: Policies and Practices of High-Performing Boards

How to Build a Board of Directors: Selecting Your Dream Team

Building Accountable and Transparent Boards: The Board’s Path to Excellence

Gaining Governance Consistency: How to Reduce the Annual Speed Bump

A Case Study of Good Governance: Greensboro Country Club

NCA members will receive Club Governance semiannually as a special insert in Club Director magazine. Through our partnership with NCA, we are making each publication available to our valued clients.

Read or download Club Governance here

A print version of Club Governance is available to GGA Partner clients. If you would like us to send one, please provide your name, club name and mailing address via email to linda.dillenbeck@ggapartners.com.

You’re Now the Leader

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

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

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

 

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

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

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

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

 

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

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

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

Mid-Year Predictions for the Second Half of 2021

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At the start of the new year and in the spirit of planning, the thought leaders at GGA Partners sat down to predict what we believed to be coming throughout the year and shared our 2021 Predictions on the Shape of the Next Normal. Now, halfway through 2021 with the spring season in the books and summer underway, we reconvened GGA leaders for a mid-year check-in on predictions for the latter half of the year.

1. Ensuring fair and equitable access to amenities remains top of mind, especially on the golf course

A trending topic throughout the industry is golf’s demand surge and how long it will sustain, much has been written on this point and those who are closely watching rounds played metrics anticipate a clearer reading by the end of the summer.

Stephen Johnston, GGA’s founding partner, expects that private clubs will see the surge continue to elevate rounds played by members which will likely increase issues relating to compaction of tee traffic and accessibility.  He predicts the benchmark regarding average number of rounds per member to be higher by approximately 10% following the pandemic and also increased golf course utilization by members’ spouses and family members.  Both factors will create a greater demand for tee times at private clubs.

Johnston believes some clubs may need to consider permitting round play by fivesomes instead of foursomes, potentially catalyzing logistical challenges such as a greater need for single-rider power carts in order to maintain speed of play at the same rate as foursomes with all players using power carts. For club managers and course operators, this entails an increased need for current and detailed evaluation of the benefits of membership and the relationship between playing privileges and the practical ability to book a tee time and get on-course.

2. Effective demand management is key and will shift from agile, flexible approaches to new operating standards as demand stabilizes

During the pandemic and throughout 2020, many golf, club, and leisure businesses recognized the increased need to more accurately and routinely measure the utilization of amenities, adapting operations management to react quickly to change.

Craig Johnston, head of GGA’s transaction advisory practice, anticipates an evolution in this one-day-at-a-time, agile monitoring approach into a new and more formalized standard of operating procedures.  “At the start of 2021, we said we would see clubs provide flexibility and experiment with various operational changes,” he explained.  “With the pandemic feeling like it’s steadily moving toward the rear-view mirror, members will be expecting clubs to begin instituting the ‘new normal’ operations and the data compiled by clubs in the first half of the year will be critical to deciding on the new normal.”

Johnston believes that membership demand will continue to be strong through the second half of the year and that it is likely utilization will reduce marginally as members begin travelling again for work and social obligations.  Even with a marginal reduction in utilization, demand for private club services will remain strong and will continue to put pressure on capacity and access in most clubs.

Senior Partner Henry DeLozier encourages club and facility operators to embrace short-term continuations of high demand while keeping an eye on the future and the non-zero probability of a demand shift in the coming years.  “Clubs must create pathways to sustain demand while navigating utilization volume.  It is unwise to place hard or irreversible limitations on capacity while clubs are at historic maximums for demand and usage,” cautioned DeLozier. “Clubs will do well to establish a clear understanding of demand and utilization to enable innovative programs which serve to fill periods of low demand in the future.”

3. Ongoing uncertainty about the pandemic’s long-term impact on club finances will increase the review and reevaluation of club financial projections to ensure sustained budget flexibility

While data regarding utilization, participation, and engagement throughout the summer months continues to be captured and consolidated, business leaders should not delay their financial planning and instead get to work on reevaluating finances and updating their future forecasts.

“Now is the time to review, evaluate, and reset club debt levels,” emphasized Henry DeLozier. “Clubs need to recast financial projections based upon elevated joining/initiation fees arising from high demand.”

In support of alacrity in financial planning, DeLozier notes that labor shortages spurred by the pandemic will increase payroll-related costs at a material level. He also predicts that comprehensive risk review is needed at most clubs to evaluate possible impacts arising from cyber-crime and/or declining club revenues during 2022.

Beyond internal shake-ups in utilization or operations, club leaders should be anticipating external impacts that could impact their financial plans.  A hypothetical example raised by DeLozier is if the U.S. economy were to become more inflationary.  In such a circumstance he believes clubs would see an increase in the costs of labor and supplies which would necessitate increases in member dues and fees, a deceleration of new-member enrollments as consumer confidence dips, and a slight slow-down in housing demand.

Right now, uncertainty remains with respect to the virus as well as the resulting economic impact from the pandemic. From a financial standpoint, clubs will do well to advance their forward planning while retaining budget elasticity.  “It will be imperative for clubs and boards to build flexibility into their budgets and agility into their operations,” added Craig Johnston.

4. Existing governance practices, policies, and procedures will be revisited, refurbished, and reinvigorated

A litany of new ways of operating and governing the club arose as a result of the pandemic, some of which suggest an efficacy that can be sustained in a post-pandemic environment.  Essential to assimilating these adaptions into new standards of procedure is a review of existing governance practices and the documentation which supports them.

“At a time when boards can measure the full range of financial performance metrics, updating club governing documents is a primary board responsibility,” noted Henry DeLozier.  “Board room succession planning must be formalized to prepare clubs for the inevitable downturn from record high utilization.”

In considering the nearly overnight adoption of technology tools to enable remote meetings and board-level deliberations, partner Michael Gregory noted a substantial increase in the use of technology tools that go beyond virtual Zoom meetings.  “The pandemic has allowed clubs to test online voting,” he explained.  “For many clubs, once things return to normal, their bylaws won’t allow for the continued execution of online voting unless they make changes.”

“We have seen the adoption and implementation of online voting to be a huge success for the clubs who have tried it for the first time,” said Gregory. “Members love it, it’s easy, it’s convenient, it leads to higher participation from the membership, and many clubs are in the process of changing their governing documents to allow for online voting as a result.”  The challenges and opportunities of employing online voting are detailed in our piece on taking club elections digital, which features a downloadable resource that can be shared among club boards.

5. In human resources, expect to see deeper reevaluations of compensation structures and employee value propositions

Weighing in from across the pond, Rob Hill, partner and managing director of GGA’s EMEA office in Dublin, predicts that club leaders will face bigger challenges in human resources throughout the remainder of 2021.

The first of three particular items he called out is a reevaluation of compensation.  “Making decisions about employee pay is among the biggest challenges facing club leaders in the wake of the coronavirus shutdown,” stated Hill. “As they begin compensation planning for the rest of the year and into 2022, these leaders not only have to consider pay levels, but also the suitability of their mission and operating model to thrive in a post-pandemic world.”

Citing his recent experiences in the European market, Hill shared that club leaders are challenged with finding new ways to operate smarter and more efficiently, while also looking for innovative ways to implement sturdy, low-cost solutions that their employees will love.  Which leads to his second point, that there will be a renewed emphasis on what employees love and how clubs, as employers, can provide an enhanced value proposition for their employees.

“As employees get back to work onsite, employers are finding that what their people value from the employment relationship has changed,” Hill explained.  “Where pay has been viewed as largely transactional in the past, clubs may need to provide new types of benefits, especially programs that provide more flexibility, financial security, and empowerment to retain and motivate their people.”

Lastly, there is likely to be considerable movement of talent over the coming year brought on by employees’ new work-life ambitions and financial imperatives, said Hill, “As demand for their skills and experience grows, the very best talent will seek out employers that demonstrate they view employees not as costs but as assets and reflect this in their approach to compensation.”

Recalling our start-of-year prediction that the movement of people and relocation of companies will reshape markets, partner Craig Johnston added, “The relocation of people continues to be a prominent trend and one that is likely to continue in the second half of the year.”  For club employers, it’s not just the changing physical locations which impact the cost and supply of labor, but also the expectations of employees as they seek out competitive new roles and work experiences.

6. The repurposing and reimagining of club facilities, amenities, and member-use areas will continue

The pandemic pushed to the fore the need for clubs to adapt their facilities to match changes in the ways members use and enjoy their clubs.  A combination of practical evolutions for health and safety and circumstantial evolutions drawn from widespread ability for members to work remotely created increased desire for clubs to offer more casual outdoor dining options and spaces to enable members to conduct work while at the club.

Partner Stephen Johnston believes these sentiments will continue to near-term facility improvements at clubs.  “With more flexibility in the workplace and members working from home periodically, there will be a need at the club for members to do work or take calls before their tee time or their lunch date,” he said.  “It has been evident for some time that members generally prefer to enjoy outdoor dining and since, throughout the pandemic, it has become apparent that guests draw greater comfort in outdoor experiences, I see a greater demand for outside patio and food and beverage service.”

As society begins to reopen and communities begin to stabilize, time can only tell precisely how clubs will continue to evolve their operations, whether that be scaling back pandemic-relevant operations or doubling-down on new services and efficiencies.  Evident in our work with clients are significant efforts to reorganize club leaders, reevaluate operations, and retool plans for a successful future in the new normal.  Here are a few highlights of efforts clubs are making for the next normal:

 

  • Reinvigoration of governance processes and engagement of leaders to ensure alignment between boards and club strategic plans.
  • Renewed surveying of members to keep a pulse on how sentiments have changed from pre-pandemic, during pandemic, and currently as communities stabilize.
  • Enhanced adoption and application of electronic voting as clubs reevaluate membership structures, governing documents, and operating policies amidst “displaced” members.
  • Reconfiguring of budgets, capital plans, and long-range financial models.
  • Refinement and advancement of membership marketing strategies, tactics, and materials.
  • Tightening relationships between facility planning, capital improvements, and member communications campaigns.

Say These Two Words to Boost Employee Performance

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Game Plan – Henry DeLozier‘s monthly column in Golf Course Industry Magazine – continues its series on staffing for success with a review of the business bestseller “Leading with Gratitude: Eight Leadership Practices for Extraordinary Business Results.”

“Thank you.”

How does it make you feel when someone expresses their appreciation for a job well done? Pretty great, right? We can all remember the emotional high when a boss we respected told us how grateful he or she was for our contribution to a particularly meaningful project. As it turns out, beyond the personal boost gratitude provides, it’s also great for business. The multi-faceted benefits of gratitude is the subject of Adrian Gostick’s and Chester Elton’s business bestseller “Leading with Gratitude: Eight Leadership Practices for Extraordinary Business Results.”

After surveying more than 1 million employees, Gostick and Elton found that expressing gratitude is the easiest, fastest and least expensive way for managers to improve employee performance and engagement. In that sense, showing gratitude is not only about being nice — it’s about being smart because it could also uncover untapped employee potential and identify obstacles standing in the way of even better performance.

Maybe the best thing about practicing gratitude is that it’s easy. But that’s not to say that it comes naturally to all leaders or that it’s well understood as a business strategy. In many organizations, there exists a sizeable “gratitude gap” between the appreciation employees feel they deserve and what they receive.

This gap points to the consequences of an ungrateful work culture. The authors found that 81 percent of workers said they would work harder if their boss was more grateful for their work. And if you want to reduce turnover, start with gratitude. The No. 1 reason people leave a job, according to the U.S. Department of Labor: They don’t feel appreciated by their managers, even more of an issue with today’s younger workers.

Expressing gratitude effectively is an easily learned behavior, but it does require more, in the authors’ view, than “showering more thank-yous” on employees: “Developing genuine gratitude involves carefully observing what employees are doing, developing greater empathy and sincerely trying to understand the challenges they face.”

Some leaders will insist they are “not wired” for gratitude, excusing their command-and-control style with increased performance, production and results. But the authors insist just the opposite: “Leaders who infuse fear into their work cultures undermine their objectives to increase performance and instead produce stress that can lead to burnout and other productivity-crushing effects.”

Former Ford CEO Alan Mulally is among the many executives who back up the authors’ claims. “Skills are one thing,” he says, “but to create a smart and healthy organization, void of politics, whose people don’t go after each other, that’s about respecting them, showing them the data and thanking them for what they’ve done.”

In his first meeting with Ford’s 4,000 dealers, Mulally began practicing what he preached. He asked Ford employees in the audience to stand, turn and face the dealers. “Now say ‘We love you,’” Mulally instructed. It took the employees three tries before Mulally was satisfied with their sincerity and enthusiasm, but the dealers were quickly convinced this was going to be a new Ford under Mulally’s leadership, one where their roles were valued.

“We aren’t saying every manager needs to offer praise to every employee every day,” Gostick and Elton conclude. “We are saying that most managers should be offering more of it, quite a bit more often.”

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

 

Learn more about staffing for success:
Read Staffing for Success: Part 1
Read Staffing for Success: Part 2
Read Staffing for Success: Part 3

Staffing For Success: Part 3

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Game Plan – Henry DeLozier‘s monthly column in Golf Course Industry Magazine – continues its series on staffing for success with the third of three installments. After looking at how the pandemic has afforded club and course managers the opportunity to reevaluate their teams (Staffing for Success: Part 1) and strategies for finding and hiring the right team members (Staffing for Success: Part 2), we turn to creating a culture that inspires and retains top performers.

Culture: The Secret Sauce of Success

A Supreme Court justice once defined obscenity by not defining it. “I know it when I see it,” Justice Potter Stewart famously said in 1964. It seems that an organization’s culture might fit into the same category: difficult to define, but obvious once illuminated.

The difficulty in defining organizational culture is because it is so many things at once. An amalgamation of personality, values, reputation, purpose, style and traditions framed by a set of written and unwritten rules developed over time and considered inviolable. Put them all in a pot, let them simmer for a while — a few years or maybe a few decades — and what’s left is culture!

Culture then is nothing less than an organization’s heart and soul, and its importance rivals any other asset or advantage. It is the glue that holds the organization together. It inspires loyalty in employees and motivates them to act consistently and pridefully. It influences them to perform at a high level because they feel a responsibility to uphold their end of the cultural bargain.

Culture is also an important factor in retaining top performers. Randstad, the international employment and recruitment firm, lists toxic cultures with poor pay, limited career opportunities, lack of challenging work, lack of recognition and work-life imbalance as the leading reasons people leave their jobs. There is an urgent need to pay attention to the culture growing around your club or course or risk losing top talent.

If this amorphous entity known as culture is so critical, what steps can you take, what keywords can you prioritize for search engines and what KPIs do you elevate to bake it into your organization? If only creating or transforming culture were so easy. Every winning culture is part of a unique set of attributes and characteristics that cannot be invented or imposed. It must be discovered from within.

But that doesn’t mean you should sit back and wait for culture to reveal itself — or for it to form in ways that could be detrimental to your future success. The road to a sustainable and winning culture ensures that employees:

 

  • Understand the club’s/course’s vision and how they contribute to it. When everyone knows where their leaders are steering the ship, it’s much easier to get people onboard and for employees to feel good about rowing.
  • Know how their performance is measured and what their personal success looks like. What results are expected? Are there both quantifiable and qualitative measures?
  • Are consistently recognized for contributions that meet and exceed goals. Nothing is more motivating than recognition in front of colleagues.
  • Recognize a commitment to diversity and inclusion. Employees of color and minorities want to see evidence that their opinions and work is valued and that they’re on a level playing field.
  • Feel that their managers are taking steps to safeguard their health and well-being. In a post-pandemic world, employees want to feel confident that their job is not putting them and their families in danger.
  • Are rewarded through a set of personal, flexible, creative benefits. Baby boomers, millennials and Gen Xers think about benefits and perks differently. To make them meaningful, managers must understand what each employee values most.

In addition to helping retain top performers, an engaging and embracing culture also has competitive advantages, particularly when it comes to sustaining high performance. Bain & Company research found that nearly 70 percent of business leaders agree that culture provides the greatest source of competitive advantage. In fact, more than 80 percent believe an organization that lacks a high-performance culture is doomed to mediocrity.

Culture may not be the easiest thing to define, but you can take steps that encourage a culture in which your organization thrives. You can’t rush culture, but you’ll know it when you see it.

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

Staffing For Success: Part 2

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Game Plan – Henry DeLozier‘s monthly column in Golf Course Industry Magazine – continues its series on staffing for success with the second of three installments. After looking at how the pandemic has afforded club and course managers the opportunity to reevaluate their teams and redefine job descriptions in Staffing for Success: Part 1, we turn to finding and hiring the right team members.

As businesses reshape themselves into leaner and more efficient operations, top performers are the best value their money can buy.

A great many Americans are currently unemployed and looking for a job. According to the U.S. Bureau of Labor Statistics, 6.7 percent of the labor force — more than 10 million people — is out of work. Finding top performers for rising needs in club management roles should be easy work, right? If only it were a simple matter of statistics.

As management professionals in any business know, the magic is finding the right person for the right job. With the war for talent continuing to escalate, we turn to three experts to help us identify the best practices for optimum staffing in these turbulent times.

Jim Collins: Get the right people on the bus

Step one, as management thinker Jim Collins advises in his bestseller “Good to Great,” is to start by “getting the right people on the bus, the wrong people off the bus, and the right people in the right seats” before heading down the proverbial highway. In other words, focus on “who” before determining “what.”

Those who build great organizations make sure they have a busload of people who can adapt and perform brilliantly no matter what comes next. Selecting the right people is a matter of clearly deciding what types of people — attitudes, talents, backgrounds, skillsets — are needed to enable your team to accomplish great things.

Jeff Bezos: Ask these three questions

The Amazon founder uses a straightforward three-question guide for hiring key employees. Bezos’ three questions offer direct application to the management of golf and private clubs and are particularly useful during unpredictable circumstances.

1. Will you admire this person?

“If you think about the people you’ve admired in your life, they are probably people you’ve been able to learn or take an example from,” Bezos says. This discipline requires that management first knows who he or she is and has a clear-eyed understanding of the strengths and benefits that are needed for any position. Hiring managers do well to ask themselves:

  • What traits and attributes inspire me to be my best?
  • What do we need?
  • To what do we aspire?

2. Will this person raise the average level of effectiveness of the group they are entering?

Will the candidate increase the efficiency within the organization? Is he or she able to see around the corner and anticipate needs? Are they willing to challenge established norms and traditions? (Should course setup be executed in the afternoon instead of first thing each day? Can mechanical work be executed after hours by veterans who need extra work?)

3. Along what dimension might the person be a superstar?

Listen to candidates’ answers. Push for details. Ask follow-up questions to understand how your candidate thinks and imagines your operation. One is more likely to be a superstar when he or she is encouraged to make others better.

Regina Hartley: Hire the scrapper

Throughout her 25-year UPS career — working in talent acquisition, succession planning, learning and development, employee relations, and communications — Hartley has seen how people with passion and purpose will astound you when given the opportunity. That’s why she says, “Hire the scrapper.” She defines scrappers as people who have had to fight against the odds to get ahead. They differ from those she calls the “silver spoons” — people who have had clear advantages in their lives and from birth seem destined for success.

Before tossing the résumé of someone who has obviously scrapped his or her way to the experience and skills that qualify them for a job in your organization, at least give them an interview, Hartley says: “A résumé tells a story. A patchwork quilt of odd jobs and experiences may signal a lack of focus and unpredictability. Or it may indicate a committed struggle against obstacles.”

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

Read Staffing for Success: Part 3

Staffing For Success: Part 1

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This month, Game Plan – Henry DeLozier‘s monthly column in Golf Course Industry Magazine – kicks off a three-part series on staffing for success. First in the series is a look at how the pandemic has changed staffing needs and why superintendents and managers should consider reorganizing their teams and redefining job descriptions. Parts two and three will look at finding, hiring and retaining the right team members and creating the culture that inspires and motivates top performers.

“Never let a good crisis go to waste” is a quote often attributed to Winston Churchill in the days following World War II. Scholars question whether Churchill ever spoke those exact words, but as we make tentative steps to emerge from a pandemic-induced crisis of our own time, the lesson it implies — finding opportunity amidst great difficulty and challenge — rings as timely and as relevant as it would have in Churchill’s day.

In the still-churning wake of the global health pandemic of 2020, maybe the first place we should look for opportunity is with our own staffs. As COVID-19 raced through communities across America, thousands of golf clubs and facilities found themselves on either side of a dilemma. For those places where golf was booming, stretching tee sheets, golf car fleets and maintenance staffs to their limits and beyond, the question was whether to staff up to handle the surge or stay with current staff levels, figuring the wave would eventually crest and return to some semblance of normal. For places the boom never reached, the questions were: How long can we manage to keep our current team intact before payroll takes too much of a bite from dwindling revenues? And among those eventually let go, who will we bring back and who no longer has a place on our team?

By now, many of those calculations and decisions have been made and the ramifications felt. But the lessons they taught should not only endure, but also inform future staffing plans. In the heat of crisis, owners and managers learned who on their teams could take on more responsibility, who had leadership potential and who had reached their ceiling. They learned where they needed additional resources and where resources might be redeployed for better coverage and results. Now it’s time to put those lessons to work with redesigned organization charts and job descriptions.

One thing is for sure: a dynamic job market has changed even more in the last 12 months with continued disruption on the horizon. “The fallout will fundamentally change recruiting and hiring practices long after the pandemic has passed,” recruiting strategist Jack Whatley recently told Forbes.com.

Another certainty is that the war for talent will continue to escalate. Top performers will be in even greater demand because as businesses reshape themselves into leaner, more efficient operations, those top performers are the best value money can buy.

“Twenty years ago, all interns had mechanical skills and no computer knowledge. Now it is just the opposite. They all know how to operate computers, but they can’t change a spark plug,” says Rick Tegtmeier, the long-tenured and highly respected golf course superintendent at Des Moines Golf & Country Club. “It sure doesn’t hurt someone to work at a lesser-budget golf course operation and learn more of the skills that help you become a more rounded superintendent.”

There will never be a better time to take all the names off your org chart and rethink the needs of the club and course, the time and talent required of each of those needs, and the right names to place in those roles. As you go through that exercise, be aware that the pandemic and its economic reverberations have also changed employees’ perspectives.

Workers have had a lot of time recently to reevaluate their careers and question their next moves. Am I in the right job in the right industry? Where could I find more happiness and greater security for me and my family? Is this a stable environment and can I count on a stable paycheck? Where will I be exposed if (or when) another crisis emerges?

“Safety and job stability are at the top of mind for the job seeker now — and that changes what they want in a job,” Whatley says. “Businesses will have to become employee-centric as well as customer-centric.”

Hopefully, you and your facility have weathered this crisis without too much damage. Now’s the time to take advantage of an opportunity it has afforded.

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

Read Staffing for Success: Part 2

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.

Running Toward Change

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This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees because of the global health crisis. Today, Henry DeLozier suggests that change on a massive scale is no longer something that should surprise us.

Technology’s tools give clubs a way to prepare for the new normal.

We’re hearing a lot these days about the “new normal” and how the coronavirus has forever changed the ways we work, shop, travel and interact.

But wasn’t it not long ago that we were talking about another new normal? Remember the new normal that followed the financial crisis of 2007-2008, which led to a global recession? That pivot from the previously abnormal to a new normal ushered in more stringent guidelines for financial institutions and in a much larger sense ushered out the sense of trust we had in many other institutions and the people who ran them.

And although the term was not yet in vogue, didn’t the seismic shift from analog to digital – the tipping point came in 2002, when the world began storing more information in digital than in analog format – qualify as a new normal?

All of which led some creative soul to design a bumper sticker that said it all: Change Happens. (You may remember it with a synonym for change.) The most adaptable among us learn to deal with change; the most successful turn it into a competitive advantage. How do they do it?

Don’t be surprised – be prepared.

When he first heard Bob Dylan’s 1965 anthem “Like a Rolling Stone,” Bruce Springsteen said, “[It] sounded like somebody’d kicked open the door to your mind.” With that song, Dylan changed how artists thought about making music. Major change often seems to arrive suddenly – with the speed of a stone rolling down a steep hill – and without warning. Its capriciousness makes us anxious. But if we know it’s coming, we shouldn’t be surprised. We should be prepared.

An embrace of the tools that technology now affords us is an important key to our preparation.

Derek Johnston, a partner in our firm, says although club leaders could not have anticipated the pandemic, they could have been better prepared.

“Many clubs were ill-prepared to quickly analyze the potential impacts of the coronavirus pandemic, to run initial scenarios, to easily gather more information, to test their hypotheses with their membership and, ultimately, set a course of action,” he says.

That is not to say that clubs have responded poorly. On the contrary, club leaders have performed in truly admirable fashion. Many clubs just had to work much harder than those that had already implemented data analytics processes and plug-and-play dashboarding tools, like MetricsFirst or continuous member feedback tools like MemberInsight.

“Some club leaders still question the need to bother with data analytics tools and programs. This misunderstanding is simply misguided,” Johnston says, adding that the term “analytics” seems to intimidate some and conjure visions of data overload and complexity. Another fallacy, Johnston says. “Data analytics, when executed properly, is intended to actually simplify information and present insights in very crisp, clean, and easy to understand ways.”

Ginni Rometty, executive chair of IBM, told Fortune magazine editor Alan Murray, “There is no doubt this [coronavirus] will speed up everyone’s transition to be a digital business.” She identified four areas of impending change: 1) the movement to the cloud; 2) the move toward automation; 3) the overhaul of supply chains, and 4) the movement toward new ways of doing work. Each force will happen in accelerated fashion, she predicts.

Rometty is not alone in her assessment. Almost two out of three respondents to a recent Fortune survey of Fortune 500 CEOs expect technological transformation to accelerate. Doug Merritt, CEO at Splunk, a big-data platform, pointed out two important observations: 1) a rapid digital transformation and 2) the elevated importance of gathering and interrogating data.

Top-performing clubs will similarly leverage the pandemic to implement advanced methods for executing work and providing services. Retooling such routine practices as monthly billings, guest policy tracking, and point-of-sale transactions will happen quickly. Likewise, separating work from jobs will trend even more in the wake of the pandemic.

“Clubs that are actively maintaining both real-time operating dashboards and strategic dashboards, combined with a proper financial model, are taking preemptive steps toward dealing with change,” Johnston says. “When it happens – and we know it will – they will experience far less conflict amongst their management team and their board. Ultimately, their preparation will enable better decisions, faster.”

Turning Insights Into Action

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GGA Insights exists to support you as a club leader, offering you solutions, tools, and tactics today that can help you improve your work life tomorrow.  But putting change into practice can be a challenging endeavor. GGA Director, George Pinches, offers a road map for translating genuine insights and data into meaningful boardroom action.

Most private clubs are like cruise ships; they do change direction, but very slowly. They are often steeped in tradition, and while this is a powerful asset, it can also hold clubs back.

In reality, clubs need agility if they are to respond and adapt to the fast-evolving demands of changing markets, new technology and generations of new members.

But don’t lose hope; with more data available to us than ever, there is reason for optimism.

Data can clarify the changes that need to be made, shape the direction of travel, and safeguard clubs from the obstacles and pitfalls they may otherwise run into.

But the truth is, before data can be put into such effective practice, many clubs and boards require a cultural shift to recognize the value of it.

Commitment first

When my GGA colleague, Fred Laughlin, first introduced the Club Governance Model, he stressed the importance of obtaining a board commitment before undertaking transition.

This is because research demonstrates it usually takes three administrations for significant changes to be fully adopted by a club board.

In order to move away from what we typically see – decisions based on anecdotal evidence rather than genuine insights and hard facts – this is the process to follow: commitment first, then change follows.

For you, obtaining commitment from your board and committees means convincing them that the use of data-driven decision making is mutually beneficial.

Once your board members start asking “What are the facts? Do you have comparable data or industry benchmarks to support this recommendation?”, then your club will be on track to a brighter future based on genuine insights.

Shifting the dial

It’s clear that clubs can no longer rely on decisions based on institutional memory and personal opinion. But how do you (in practical terms) achieve such long-lasting change?

When it comes to shifting the culture, timing is key.

One of the best opportunities to start a culture shift is at the beginning of a new tenure. This tends to be a ‘honeymoon period’ for the new GM or COO, when support and expectations are running high.

Take the opportunity to assess the culture and seek ways to introduce change: commitment first, change to follow. If your board has an annual board retreat, this can be an opportune time to take action.

Beyond that, I’d recommend focusing on these three key areas to encourage a sustainable culture shift towards a data-driven future:

  1. Board recruitment and development – The nominating committee can add “an aptitude or understanding of data-driven decision making” to the list of attributes when recruiting nominees for the board. The GM/COO can use the same criteria when filling senior management positions.
  2. Board policy – Alterations to the Board Policy Manual (BPM) can ensure that the decision-making policy stipulates the required data, back-up information, and consultation necessary to support a recommendation. Proponents, be they committee or management, soon learn what is expected by the board before considering an initiative or making a decision.
  3. Education – Club industry resources that extol the virtues of data-driven decision making can be shared during board and committee orientation to support the culture shift away from anecdotal to fact-based practices.

Finding ‘your’ way

Process and structure will help, but a true shift in culture can only be achieved through intelligent and thoughtful execution. In some cases, this means finding the unique tactics which work best for you and your Board.

‘Shifting culture’ will not appear in many job descriptions of club leaders. But, for a lot of clubs it should be at the very top. It holds the key to disrupting what can be a perennial cycle of decisions based on what those in power ‘think’ is right.

My advice: think long-term (beyond 5 years), actively gain the buy-in and commitment of board members, and put a structure and process in place to ensure data and intelligence are at the heart of how your Club operates.

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