Tag: member

Not the Time to Wait

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

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

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

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

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

Three important points to consider when ramping up club operations:

1. Update the club’s financial plan.

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

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

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

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

2. Strengthen your team.

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

3. Introduce new social programs.

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

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

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

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

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

Creating a Reliable Game Plan

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

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

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

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

Crisis Management and Communications

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

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

Reopening Your Club

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

If you don’t know your login information, please contact CMAA through this online form.

 

This article also featured in Golf Course Industry magazine. 

Getting the Right People on the Bus

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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 as a result of the global health crisis. Today, in the second of two articles on strategic people planning, Patrick DeLozier (Director, GGA Partners) and Jodie Cunningham (Partner, Optimus Talent Partners) highlight the importance of talent planning and optimization for a post-COVID-19 future.

Now’s a great time to re-examine job requirements to ensure the best fit for your club

In our first article on strategic people planning we discussed the first two phases of talent optimization: 1) adapting your business strategy and 2) plotting your revised organizational structure. In part two, we will focus on phases three and four: 3) selecting the right talent and 4) inspiring people development and engagement.

This part of your strategic people plan centers on filling roles in your organization with people best suited for the job. It’s a process that author Jim Collins in Good to Great likened to bus drivers (leaders) getting the right people on the bus (team), the wrong people off the bus, and the right people in the right seats (roles).

One cautionary note as we begin: Someone who was right for a specific role pre-pandemic may not be right for the same role now. Your business has changed, and some people may need to change seats. Others may need to get off the bus.

Phase 3: Select the Right Talent

Define the job. Before you start inserting applicants and rehires into the selection equation, you need to define your jobs. Without clarity, anyone involved in the hiring process will simply be guessing about those best fit for the job. The answers to a few basic questions will help form a solid job description.

 

  • What are the most important and frequent activities of this role?
  • What specific knowledge, skills and abilities are required?
  • What skills and experiences are complementary to those of the current team?
  • What behavioral style and temperament is best suited in this role?
  • Is independent decision-making or collaboration more important?
  • Does this role require social interaction or a more analytical, introspective approach?
  • Are normal working conditions in this role stable and consistent or constantly changing and pressure-filled?
  • Does this role require a big picture, strategic view where risk taking is welcomed, or is it more task oriented and risk-averse in nature?

To win the war for talent, your managers must be fully invested in driving the hiring process from start to finish. When you train managers to use people data in the hiring process, they will make smart, objective decisions, as opposed to desperate or bias-filled ones. Managers should enter the hiring process with the following information, knowledge and understanding.

 

  • A plan for all three phases of the interview process: before, during and after the interview.
  • A list of functional and behavioral-based questions that ensure consistency across all interviews.
  • An understanding of how to probe for (and evaluate) detailed applicant responses.
  • An understanding of the information they should and should not share regarding club culture, benefits and working experience? (Remember, the applicants are interviewing the club as well.)

Phase 4: Inspire People Development and Engagement

Once you have hired your team, it is critical to keep them engaged and ensure they work effectively together. To do this, you need to be mindful of four forces that can lead to employee disengagement:

 

  • Misalignment with the job. Poorly defined positions, sloppy hiring practices and evolving business needs can create a mismatch between employees and their roles. A bad fit will ultimately affect motivation and productivity.
  • Misalignment with the manager. The relationship between employees and their managers is the most critical contributor to engagement. But many managers are poorly equipped or not trained to effectively understand their employees’ individual needs. They struggle to communicate with and motive their employees.
  • Misalignment with the team. Team-based work is more critical than ever, yet poor communication, insufficient collaboration and an inability to manage tensions inherent to teamwork extract a major toll on productivity and innovation.
  • Misalignment with the culture. To be productive and engaged, employees need to feel they belong. When they feel out of sync with their organization’s values, or when they lose trust in their leadership, their own performance suffers. The result can be a toxic work environment that undermines productivity.

As clubs emerge from a pandemic-enforced hibernation and begin to re-establish business operations, now is an ideal time to evaluate the roles and responsibilities that make your club function efficiently and effectively.

Carefully defining each important job, making sure those involved in the hiring process are well-prepared and being alert to employees who may not be the ideal fit will help ensure that you have the right people on the bus and that they’re in the right seats. Your club’s success depends on it.

Talent: The Big Differentiator

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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 as a result of the global health crisis. Today, in the first of two articles on strategic people planning, Patrick DeLozier (Director, GGA Partners) and Jodie Cunningham (Partner, Optimus Talent Partners) highlight the importance of talent planning and optimization for a post-COVID-19 future.

A strategic people plan turns vision into reality.

“You can design and create and build the most wonderful place in the world. But it takes people to make the dream a reality.”

– Walt Disney

Every club has a strategy and a corresponding expectation: If it executes the strategy effectively, it will grow and prosper. Underpinning its strategy are detailed plans – financial plans, marketing plans, capital plans and agronomic plans. The most successful businesses, including the most successful private clubs, also have what we consider the most important plan – a people plan.

Creating a people plan – one that aligns the goals of an overall strategy with the talents and passions of your team – is a discipline known as talent optimization. Just as Walt Disney turned over the execution of his vision for “the most wonderful place in the world” to smart managers and thousands of Disney cast members, today’s astute club leaders turn to their teams of dedicated staff to implement their vision for long-term success.

As you face the challenges brought on by this crisis, there is no better time to examine your staffing model and create a strategic people plan to guide your new normal. In a post-pandemic future, your people strategy must change because the world has changed. There are four important phases to navigate to adjust your talent optimization plan:

Phase 1: Adapt your business strategy

Based on how business has changed recently, ask yourself:

 

  • What are you trying to accomplish?
  • What does success look like?
  • How will you flex to meet the demands of your new normal?
  • What new processes/products/services will you offer?
  • What processes/products/services will you eliminate?
  • Operationally and culturally, what’s working? What’s not working?

Recalibrating your strategy will involve tough decisions. You will need to assess the strength of the business, an exercise that will force an examination of people in key management positions, as well as support staff. For help, reach out to your network and bounce ideas off your colleagues. Enlist professional consultants to brainstorm best practices. And don’t be deterred if you hear “that will never work.”  Most great ideas start with critics who recite those exact words.

This is the perfect opportunity to hit the reset button. Think about all the times you wished you could make changes but allowed circumstances to delay acting. Now is the time to give yourself permission to pivot, to try new things and to take calculated risks.

Phase 2: Plot your revised organizational structure

As you finalize your new business strategy, you need to flex your people plan.

 

  • Take time to reimagine how your team should be optimally structured
  • What does your perfect world organizational chart look like?
  • What talents do you need more of? Less of?
  • Don’t think “specific people, specific titles, specific pay rates”
  • Instead, think “positions, responsibilities, behaviors, skills and talents”

As you create this new organizational structure, keep in mind how your operation is changing.  Will there be more curbside service in the future? Will there be fewer group activities? Will there be a greater need for virtual activities? Will there be a less formal food and beverage operation? Will there be a greater need for technology integration?

The Future Is Now

Let’s be clear about why a club business strategy is important:

 

  • It determines where the club is going
  • It gives a sense of direction for the entire club, employees and members alike
  • It supports smarter decision-making

Your club business strategy, which communicates key aspects of why and how the club operates, includes:

 

  • Objectives the club wants to achieve
  • Its services, products, stakeholders and members
  • Guidance on how the club competes and operates in its segment
  • Financial resources required to achieve the objectives and support the operating model

Talent is arguably the last big differentiator a business has. It is what stands between average clubs and innovative clubs. In our next article, we will dig into phases three and four and discuss the process of selecting the right talent to support your revised business strategy and creating a plan to develop that talent for long term success.

Webinar: A Changing Future for Golf Course Superintendents

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This webinar was originally aired by the Florida Chapter of the Golf Course Superintendents Association of America.

The Florida Chapter of the Golf Course Superintendents Association of America (GCSAA) and Henry DeLozier, GGA Partners, have a frank discussion on golf and what the future might look like for golf and golf course superintendents in Florida.

Speaking with Nick Kearns, Director of Green and Grounds at The Oaks Club and President of the Florida GCSAA, Henry shares his big picture perspective on changes resulting from the global health crisis and the details to which golf course superintendents need to be paying attention.

Spotlight:

 

  • Budgets will come under pressure, anticipated economic slowdown and its impact on golf course maintenance budgets.
  • The significance of the golf course superintendent and his/her ability to provide patrons a safe platform to enjoy golf will increase.
  • Emerging trends and best practices in the industry, pre-vaccine and post-vaccine.
  • Accelerated pace of change and impacts on supply chain.
  • Heightened expectations for expertise, prioritization, and communication.
  • And much more.

 

(29 minute watch)

Tactics for Financial Stewardship in a Crisis (Part 2)

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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 as a result of the global health crisis. Today, in the second of two articles discussing financial stewardship, partner and head of transaction advisory, Craig Johnston, outlines information and tactics which should be considered in developing your club’s financial plans in times of crisis.

As businesses across North America begin to re-open, ever-changing social and economic circumstances further complicate the decision-making process, and now more than ever it is imperative that business leaders have access to the critical information which impacts their business.

In the midst of a crisis, we believe prudent financial stewards should embark on a phased approach to financial planning and analysis. The three phases are:

1. Cash Preservation

2. Sustainability

3. Opportunity

The immediate focus should be on cash and cash preservation. The familiar adage Cash is King takes on even greater importance in crisis situations. Next, the focus shifts to reviewing key risks to long-term sustainability and developing plans to reduce and combat those risks. Once a game plan is understood for sustainability, business leaders should explore opportunities to enhance member experience, reduce operating or capital costs, and increase return on investment.

To navigate these three phases, two critical financial platforms are required: a detailed annual budget and a club financial model.

Often these platforms are considered one in the same, but they are not. A detailed annual budget should be designed on a monthly basis and based on agreed upon key performance indicators (KPIs) and specific circumstances for the year. A club financial model should be designed on an annual basis and based on historical and budgeted KPIs as well as other economic inputs. The monthly budget is important to support cash preservation analyses while the financial model supports long-term sustainability scrutiny and enhancement opportunity exploration.

Both platforms should be dynamic, both platforms should encompass all three financial statements, and both platforms are a must-have. By “dynamic”, we mean easily adjustable for various economic and club-specific KPIs and, by “all three”, we mean income statement, cash flow statement and balance sheet. (Yes, a club should set and approve a budget at the outset of every year, but that does not mean the platform it was developed under needs to be static.)

The information required to develop both platforms include:

  • Historical audited financial statements, including notes.
  • Detailed department financial schedules, including breakdown of fixed and variable expenses.
  • Membership information, including counts, fees, attrition rates and sales expectations.
  • Debt agreements and schedules, including covenant calculations, coupon rates and terms.
  • Labour contracts and employment agreements.
  • Supplier and vendor contracts and agreements, including terms and pricing.
  • Capital project listing, including historical expenditures, reserve studies and facilities plans.

The specific tactics under each phase of planning and analysis will vary from club to club, but some predominant examples include:

1. Cash Preservation

a. Analyze current club liquidity: evaluate the club’s current balance sheet, including available cash, receivables and payables based on an up-to-date budget, then leverage the monthly budgets to assess the near-term (three to six months) liquidity based on estimated revenues and expenses.

b. Scenario analysis: complete various scenario analysis within the annual budget platform (designed on a monthly basis) based on potential closure and re-opening scenarios. This requires a realistic evaluation of the impact of each scenario from department managers.

Based on the results of the above, determine if any near-term adjustments (staffing changes, discussions and negotiations with suppliers and lenders) are required for cash preservation.

2. Sustainability

a. Anticipate attrition rates: depending on the timing of annual dues payments, attrition rates during times of crisis can be significant. Running scenario analysis based on various levels of attrition and their impact on the club’s long-term sustainability is essential.

b. Estimate decline in membership sales: some clubs may rely on entrance fees to support operating expenses, or more predominantly capital maintenance expenditures. Evaluating the potential decline in new membership sales over the short and medium-term, and its impact on club sustainability is critical.

Based on the results of the scenario analyses, scrutinize the club’s operating model to address discrepancies between cash inflows and cash outflows. This may require moderate or significant reductions to the club’s operating profile, including hours of operation and levels of high-touch service, for example.

3. Opportunity

The review of enhancement opportunities may come about during the focus on sustainability, as the club looks at unique ways to better align cash outflows with cash inflows. However, for clubs where sustainability is straightforwardly achievable, the focus on opportunity will follow sustainability. Areas of opportunity include:

a. Staffing profile: use times of disruption to consider changes to your management team and right sizing of your staffing profile.

b. Debt re-structuring: meet with the club’s lender(s) to discuss revised terms to the current debt agreements. Interest rates are near all-time lows, and although the numerator on certain coverage ratio calculations has declined, a preferable rate or term may be available.

c. Capital projects: favorable prices may be available on large-scale projects or purchases during times of crises. Consider moving ahead with large-scale projects if the potential savings are meaningful and there is a high degree of confidence in the club’s financial sustainability.

Navigating through crisis in this phased approach – while adhering to the guiding principles of financial stewardship – will help clubs develop financial plans which offer short-term solutions and lasting success.

Podcast: The Changing Face of the Golf Industry

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This podcast originally aired by the American Society of Golf Course Architects as part of their ASGCA Insights.

Speaking with Marc Whitney, Director of Communications at the American Society of Golf Course Architects (ASGCA), Henry DeLozier of GGA Partners provides his unique business perspective on the changing face of the golf industry in light of the global health crisis.

“Control the things that you can control. Adaptability for all parties is the key going forward. Now is the time for clubs and architects to come together. Architects can bring forward cost effective designs and ideas to make clubs more successful.”

Listen to Henry’s perspective on where golf finds itself today and how the industry can focus on the future while also learning from the past.

 

(13 minute listen)

The New Normal?

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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 as a result of the global health crisis. Today, Henry DeLozier discusses steps to take in advance of reopening and ramping up operations.

We may not know what our world will look like after the current crisis subsides and our clubs reopen, but we should be preparing for it nonetheless.

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

The more effective strategy is the one that many other businesses are taking to navigate the crisis in creative and productive ways. Their leaders may not know what the future holds, but they’re getting ready to adapt to whatever is necessary to succeed.

As clubs begin to ramp up into a post-virus world, private club leaders, in concert with key operational managers, well-informed members and designated board members, are following four important guidelines:

1. Updating the club’s financial plan.

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

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

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

2. Strengthening the team.

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

3. Introducing new social programs.

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

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

Look at events that are either successive – where one event sets the stage for the next – or part of a series of similar events. Give members the sense of ongoing relationships rather than one-off types of events. (Example: “around-the-world” theme parties featuring different destinations members traveled to without leaving the comfort of the West Bay Club in south Florida, executed by Brian Schultz, the club’s former manager.)

4. Host member information exchanges.

As members anticipate their clubs reopening, they will have lots of questions, which can be boiled down to “What’s changed – and what hasn’t?” Get ahead of the onslaught of questions by anticipating as many as you can and communicating the answers widely through email, newsletters and social media.

We may not know what the new normal will look and feel like until it arrives. Meanwhile, we know members will be anxious to return to their clubs and to take advantage of all it offers them. Taking the steps outlined above will help get your club ready.

Guiding Principles for Financial Stewardship (Part 1)

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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 as a result of the global health crisis. Today, in the first of two articles discussing financial stewardship, founding partner Stephen Johnston outlines the guiding principles for being a prudent financial steward.

Despite the opinions of pundits and experts parading before our television screens, no one can accurately predict how long this pandemic will last or its economic impact. By the same token, it’s impossible to anticipate every challenge club leaders will face in the days ahead. But we can say with certainty that long-term financial stability is an issue confronting every club leader. Those who evaluate the challenge and develop a strategy with both short-term and long-term plans give their clubs the greatest opportunity for success.

From our perspective, actions in these uncertain times should follow these guiding principles:

1. Fairness. Prior to a final decision, step back and ask yourself if the anticipated action is fair for all parties, starting with members and the employees. This crisis will pass, and people will remember how they were treated.

2. Transparency. Do not take anything for granted, especially when it comes to sharing information with employees and communicating with membership. It is important for members to understand and appreciate the conscientious approach and the lengths taken to ensure the viability of their club. Video conferencing and electronic pulse surveys make timely communications and opinion convenient and efficient.

3. Value. It is important for members to understand the club carefully considers the value members receive for their fees, dues and other financial support of the club. The value for money proposition for each club and each member is different; “we’re doing what other clubs are doing” discounts this uniqueness.

4. Ownership. Ensuring members maintain their club participation and pride of ownership during challenging times is critical. Maintaining a sense of ownership in the club will help members appreciate the difficult decisions being made in the face of unprecedented circumstances.

5. Right Things Right. Make sure each critical action or decision is conscientiously considered and prudently implemented. By considering the long-term economic and social consequences of your decisions, leaders often realize that efficiency and cost savings are not automatically the top priority.

6. Think Long-Term. Short-term planning and tactics are the priority. But before executing, assess how the short-term actions affect the long-term plan and vision for the club. Always measure the impact any action will have on cash preservation, club value, member and employee satisfaction. Adjustments to the short-term plan may be necessary to reduce the impact on your long-range strategic plan.

7. Preparedness. It’s easy to say we should be prepared for the worst, but it’s impossible to anticipate every calamity. What we can do is make sure all the club’s business information and resources are readily available. This generally means putting in that extra hour or two each week to stay organized. As we prepare for reopening and the new normal, develop a reopening plan and adjust this daily based on new information which comes available.

8. Listening. We are a firm believer in the importance of empowering the general manager to make critical business decisions. We’re equally committed to the idea that managers need to listen to the ideas, challenges and concerns of their board members, department heads, members and industry and government leaders. Their input and feedback are essential in making informed decisions.

Financial stewardship matters most in times of crisis. Even the most prudent financial stewards cannot anticipate every obstacle they will confront. But experienced, poised, and attentive leaders will follow proven guiding principles to protect the club’s members, brand and overall financial health. In our next article, we will explore specific tactics for developing a financial plan to ensure short-term success and long-term sustainability.

Crystal Ball Thoughts on the Shape of the Next Normal

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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 as a result of the global health crisis. Today, Henry DeLozier highlights GGA Partners’ crystal ball thoughts on what the post-crisis environment will look like for club and leisure businesses.

Gordon Gecko wasn’t the good guy in the Faustian tale Wall Street and, yet, the character played in the 1987 movie by Michael Douglas left behind some memorable advice, “The most valuable commodity I know of is information.”

In early April, GGA Partners gathered its team of trusted advisors and thought leaders for the express purpose of developing strategic tenets to guide GGA clients across the globe. Following are glimpses of impacts for private clubs and club leaders:

Expect Longevity

Murray Blair and Fred Laughlin, directors at GGA Partners, observe that the effects of the epidemic will be lasting and may be sortable now into certain phases:

Pre-Vaccine – Until a reliable vaccine is developed, tested, and made available for widespread usage, conditions for most clubs will change only slightly from current circumstances. Baseline operational methods will change significantly as partial- and full-closures are showing operators and members new – more attractive, in some cases – methods which satisfy members’ concerns for caution and dining at their clubs. Many clubs are finding that demand for dining options at the club is growing as so many previously competitive restaurants are closed.

Operating costs will vary widely. Housekeeping budgets will increase substantially as members want to experience highly obvious signs of the club’s emphasis on sanitary conditions, cleanliness, and personal safety for members and staff. Labor costs will vary widely based upon local supply/demand balance as many workers will be less mobile than before.

Post-Vaccine – After a vaccine has been found and put into use, members will renew their active usage of their clubs differently. Bennett DeLozier observed that club members who previously were nonchalant on matters of strategic planning at the club will demand that their club have a clearly stated and broadly understood game plan. Many members who are responding GGA attitudinal surveys observe that there was no expectation of a health pandemic and, yet, believe “The club should have had a disaster preparedness plan.” Strategic planning, which was previously an indicator of the best leadership in clubs, will be important to most private clubs more so in the future.

Continued & Reinvigorated Family-First Focus

Barb Ralph, one of GGA’s most tenured team members, opined that members will seek more family-oriented facilities, programs and services. The notion of “clanning”, first suggested by futurist Faith Popcorn in her 1996 book, Clicking: 7 Trends That Drive Your Business–And Your Life, documents Barb’s thinking on the importance that causes many to want to keep those dear to them in a safe haven – like their club.

A New Normal

Linda Dillenbeck, a director for the GGA Partners Club Communications Practice, looks beyond the pandemic to underscore the critical importance of effective and trusted member communications from the club to its stakeholders: members – their families and friends, employees, neighbors, suppliers, and vendors.

Linda suggests that in a time when new standards are being established, the necessity of effective communications from clubs to their members will be a difference-maker to the clubs’ future economic durability. “Club’s with a proactive communications approach will be at a distinct advantage throughout and after the coronavirus epidemic,” according to Dillenbeck.

Shifting Operational Needs

Speaking from the perspective of the millennial generation, Alison Corner, Ben Hopkinson, Andrew Johnson, Mingye Li, and Andrew Milne agree that clubs will change significantly and – in some ways – toward operational needs and priorities previously reported through GGA Partners’ millennial research installments.

To summarize the ideas from these brilliant young minds, clubs will shift dramatically into (a) high-gear focused on membership recruitment and retention; (b) new activities, like musical events and performance art; and (c) new membership types, categories, rights, and privileges.

Martin Tzankov, a GGA manager, expects the new normal to bring a focus to financial durability to clubs. Martin notes the importance for club leaders to mind the strategic priority of balance sheet management and the financial health of their clubs.

Many club leaders forget the four cornerstones of board service: leadership, governance, strategy, and finance. Looking ahead, the clubs that perform best after the coronavirus pandemic will be those holding the best information. Perhaps Gecko was right.

Smart Moves by Smart Leaders

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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 as a result of the global health crisis. Today, Henry DeLozier offers several examples of the right things to do if you are a crisis leader.

Excellent leadership is a mixture of many important ingredients and information – access to it and knowing how to use it – is critical to the mixture. Smart leaders are using time during the novel coronavirus outbreak to sort through many sources of information to choose the most relevant and insightful information sources available to them.

During this pandemic, leadership qualities are being revealed in no uncertain terms. Those who have reliable information and can explain circumstances succinctly, consistently, and timely are viewed as “crisis leaders”. At GGA Partners, we consider someone to be a “crisis leader” when they are able to do the right things right.

Following are several examples of the right things to do, if you are a crisis leader:

Understand the significance of trustworthy leadership.

Achieving trustworthiness requires having reliable and current information, maintaining an on-going dialogue with those relying on you, and being truthful in your dealings. If the news is bad, trusted leaders are able to convey the combination of truthful expectations or projections in an empathetic manner.

After England suffered the fall of Dunkirk, Winston Churchill described “a colossal military failure” when reporting to the House of Commons at Parliament. He did not mince words and aligned accountability – his own – with the authority given him. People trust those who can step up in tough times.

Manage information aggressively.

Keep your stakeholder groups of members, employees, suppliers, and extended business partners – like bankers and insurance carriers – well-informed. It is essential to be inclusive, informative, and accurate. Do not make any incorrect statements.

Club leaders serve many stakeholder groups which often have different needs and priorities. Evaluate your stakeholder groups and refine communications which decisively and clearly address the expectations and needs of each group.

Express optimism.

US President John Kennedy focused his countrymen on a goal of putting a man on the moon in May, 1961, when he told the US Congress, “This nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth.” At the time, this was not a popular idea as 58% of American’s polled were opposed to the idea. And yet, in July of 1969, Neil Armstrong, Buzz Aldrin, and Michael Collins fulfilled the slain President’s goal.

Churchill’s ability to deliver dreadful news, like the fall of Dunkirk and Singapore, was supported by his bull-doggedness in telling the British people that they would “never surrender” as he pointed out that Britain’s far-flung empire and the New World powers would come to the rescue, as they did. Bitter truth was supported by an optimistic outcome.

Be present.

Maintain regular – if even predictable – contact with your stakeholder groups. Address their concerns in the context of updated information. See that your information updates are available using multiple media – such as email, social media, direct mail, and conference calls – and be willing to repeat certain key bits of information for the sake of emphasis.

Communicate your plans – and act on them.

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

In her 2018 book entitled Leadership in Turbulent Times Pulitzer Prize winning historian, Doris Kearns Goodwin, cites several specific lessons that can be drawn from Franklin Roosevelt’s first term in leading America from the depths of the Great Depression. First and foremost, indicate that there is a center-point of leadership and direction. Roosevelt made clear his understanding that he was chosen to lead. Then, came the Hundred Days and the New Deal…so there was a plan. Now, as for Roosevelt, planning must be very dynamic and agile.

 

Sound leadership is a matter of thoughtful and comprehensive planning. The clubs that will prosper after these difficult times are the clubs with a plan that is comprehensive in nature and not drafted in piece-meal fashion.

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