Tag: members

5 Tips for “Yes” in Your Capital Call Communications

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People fear change when they don’t understand the reason for it. And when they don’t understand the reason, they resist it.

In our work related to capital investment communications, we find that the vast majority of private club members understand and accept that it is their duty to leave their club better than they found it, with the caveat that the investment they are being asked to make is reasonable and necessary.

While obtaining a positive vote for your upcoming assessment is not guaranteed, getting members to say yes to being assessed can be much more achievable by following these 5 guidelines:

1. Communicate the Need

One of the keys to achieving a positive assessment vote outcome is to clearly communicate the need for the proposed upgrades. Whether your irrigation system is past its useful life and now costs more to maintain than replace or your casual dining area cannot service the demand or still has 1980’s decor, it is important to educate members about the need for the upgrades as well as the benefits that members will receive from them.

2. Engage Members in the Process 

Gone are the days when new amenities being proposed were based on the desires of a board member or two. Today, board members and management teams have adopted a more strategic approach to determining investments needed to ensure their club’s continued success. Club leaders are apt to rely on member surveys and focus groups as the starting point to understanding the need and the desire for capital improvements. It is a good first step, but not the only one. The most effective club leaders prepare preliminary plans and drawings with the understanding that once members have a chance to review the information, there will likely be a need for changes. We encourage clubs to present the plans in multiple meetings with small groups of members. This allows the facilitator to engage each member to hear questions and comments. This method allows the facilitator to control the flow of the meeting and ensure that one or two members are not monopolizing the meeting. Once all meetings have been completed, a recap of the key takeaways should be shared with all members.

3. Don’t Rush the Process 

Typically, the reaction to the introduction of major capital improvements and the associated assessment will be quite mixed. At GGA, we typically find that 20% of members will fully embrace the upgrades and 20% will be adamantly opposed to the plan. The remaining 60% need time to process the information and become comfortable with the prospect of the changes to the club and their budgets. That’s why it is vital to allow time for members to process the information, become comfortable with the plan and consider how it will benefit them. If you rush to a vote, there is a good chance the level of support needed will not be achieved. But if you take the time to communicate how you are addressing member concerns, answer member questions, provide plan updates, then ask for support, you will have a much greater chance of getting to that “yes” vote.

4. Develop an Equitable Payment Plan

The most senior members at clubs are least receptive to paying a lump sum assessment, using the argument that they will be paying for something they will not be able to enjoy for long. To ensure the capital improvement payment plan is not the deterrent to support, many clubs have moved to a “pay as you go” program whereby a small portion of the total assessment is paid in a lump sum, but the remaining assessment amount is paid monthly or semi-annually over three to five years. Not only does this payment option make it more manageable for all members, it also shows that those who will be enjoying it for years to come will assume more of the burden of paying for the plan.  

5. Bring Members Along on the Journey

Just like you, members are overwhelmed by the sheer volume of information that bombards them every day, which means that your capital investment communications need to work harder than ever to break through the clutter. Efforts to keep members informed along the journey to improve their experience should carry a consistent theme, be repetitive and as short as possible.

A clear, consistent communications plan to educate and engage your members in the process of planning your capital improvements will ensure that fear is not the deciding factor of your club’s future.

Interested in learning about GGA’s Capital Call Communications services?

If you would like to learn more about how we can help your club execute a capital call, please contact us.

Online Voting, Explained

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The Covid-19 pandemic accelerated digitization across many sectors, inspiring many to wonder: why didn’t we do things in this way before? This is indeed the case for electronic voting. Many clubs implemented electronic voting, albeit by necessity, to navigate complex challenges brought on by the pandemic. However, electronic voting is still relatively immature within the club industry. If you are curious about electronic voting, we answer five common questions that help to paint a clearer picture of electronic voting.

Why do online voting?

With the option of electronic voting, participation rates traditionally increase. Instead of needing to attend a meeting and fill out a paper ballot, members can access the ballot at home on their computer or at work on their phone. Voting can be completed in minutes and members receive a virtual confirmation assuring them that their vote was tallied. Higher voter turnout means higher levels of engagement among your members, and a simpler democratic process.

If planned properly, online voting can also be much more cost-effective. Your club can save on printing and mailing costs that would not be required through an online platform. It can also allow your club to allocate time and human resources to other areas of club operations.

By moving ballots online, elections are transitioned to a safe and secure platform, used routinely by private organizations and corporations. Online voting allows an ongoing audit trail that virtually eliminates the potential for human error which would not exist with paper ballots.

Online voting is customizable and implementing changes to your election is simple. The online voting system can be set up according to specifications provided by your club. This includes branding the voting website, ballot loading, preparation and loading the list of voters, and managing authentication of voters. When it comes time to vote, a mass email is distributed to all electors with a direct link with unique authentication credentials encrypted into it, making it easy for the member and safe for the club. Once the vote has been completed and the results are analyzed, online voting provides clubs with faster and more accurate tabulation of results, saving the club time and resources. The online platform also allows for further demographic segmentation while maintaining voter anonymity.

Do our bylaws align with online voting?

When first adopting an online vote, many clubs notice that their bylaws make it complicated to shift their voting to an electronic platform. Most clubs’ bylaws were written before the introduction of online voting, and therefore, may not adequately account for it. Just because a club’s bylaws or state statutes do not restrict a club from conducting a vote online, it does not mean their bylaws are optimal for doing online voting. Although many clubs are technically permitted to conduct online voting, their bylaws may prohibit them from doing so in an efficient and logical manner.

Typical barriers and bylaws that may interfere with a smooth online voting process may include:

  • Proxy requirements and the format of the proxies, i.e., general proxies vs. directed proxies.
  • Critical timing requirements and limitations on when proxies can be collected and when voting must occur.
  • Explicit requirements to issue paper notices, ballots, or proxies.
  • Specification of who is authorized to administer, issue, or receive proxies and ballots.

So, what is a club to do?

A change to your bylaws may be required. To successfully implement online voting, advisors can help clubs identify the required changes to their bylaws that are more compatible with online voting.

Who will be responsible for planning the vote?

Elections vendors offer support and guidance on the logistics and technical aspects of how the voting will occur. Votes require strong leaders/leadership team to plan and coordinate various aspects of the vote, such as communicating with members, producing meeting notices and information circular packages that are cohesive with the online voting process. Involving the club’s legal counsel is always advisable to ensure compliance with bylaws, state statues, and any other important requirements.

How should members be prepared for online voting?

It is recommended to initially implement online voting for a ‘low risk’ vote, such as an AGM vote where there are no polarizing motions or elections tabled. Although hybrid votes can be more complex, when they are set up appropriately, they can be a good first step for members to become familiar with the process. For example, in a simple vote with no proxies, members could be mailed a paper ballot or be given the option to vote online. The outcome of how many people elect to vote online vs. by paper can provide you with a good gauge on what your members are comfortable with. You can also observe turnout from other online engagement efforts, such as member surveys.

What vendor or service should I use for online voting?

There are many vendors, each of which excel at different aspects. Important factors to consider when selecting a vendor may include:

  • Budget
  • Structure: whether the vote will be a hybrid vote or exclusively online.
  • Vote requirements: will the voting experience need to be integrated with the technology being used to run the meeting via video?

Ready to implement electronic voting for your next vote?

If you would like to learn more about how electronic voting can help you run successful votes, please get in touch.

What Do Members Want?

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Some club leaders believe that it is a fool’s mission to try to understand what members want.

In fact, it is quite simple…you need to ask members what they want. Michael Gregory and Dr. Eric Brey at GGA Partners can tell you with certainty that developing a broad and deep understanding of members’ wants, needs, expectations, and fears is a matter of faithfully applying proven practices of attitudinal research.

Dr. Brey, a PhD-accredited professor at the University of Wisconsin – Stout, is an expert at leveraging analytics to implement dependable customer-centric strategy and hone it on what truly impacts satisfaction. And it all begins with asking members what they want. Sometimes referred to as qualitative analysis, members’ viewpoints are normally collected within small groups and sometimes validated in expanded follow-up listening sessions. In his work with GGA, Dr. Brey has implemented this science within private clubs where understanding members’ attitudes are so important.

In order to measure what matters are of greatest importance to a given club’s members, attitudinal surveys prove to be a trustworthy tool. Establishing the proportion and intensity of members’ attitudes has become even more important in a time when members want to know that their viewpoints were taken into account.

Gregory, having worked at GGA since 2007, is expert at administering private club surveys. He emphasizes that attitudinal surveys in private clubs are essential because the relationship between the club and its members is an emotional and often intense one. In recent years, club leaders have become more reliant on member surveys as the sophistication of such surveys goes deeper into members’ viewpoints. Not the stuff of satisfaction surveys, an attitudinal survey seeks to quantify and measure members concerns and expectations, willingness to fund certain capital projects, and identify the characteristics – by analyzing underlying data – to provide club leaders with clearcut insight into what members want. Five factors that are consistently revealed in member surveys include:

 

  1. When factures occur in private clubs, they are often on the lines of gender and generation.
  2. Normally, the most satisfied members are the newest and the least satisfied members are the most tenured in the club.
  3. Older (in age) members are least supportive of capital projects and debt.
  4. Younger members are eager to see regular capital improvements.
  5. Women tend to be most alert to the club’s value system…”are we what we claim to be?”

Insights vary from club to club and require careful and objective analysis of underlying demographic data to enable the board to understand how members align and differ on certain topics. Dr. Brey advises careful analytical discipline and measurement. “There is no substitute for patient and transparent data analysis,” he says.

At the end of the day, Brey and Gregory confirm that it is possible to know what members want. One simply needs to ask the right questions in the right way.

This piece was authored by Henry DeLozier, Partner, for the National Club Association‘s Winter 2023 Issue of Club Director Magazine. 

Four HR Questions Club Boards Should Be Asking

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When was the last time your club audited its human resources? Alignment between a club’s strategy and its employee offering is essential in order to enhance the overall club lifestyle, culture, and experience for members and staff.

To determine whether it’s time to reexamine culture, Partner Derek Johnston lays out 4 questions private club boards should be asking. 

Among the most reverberant takeaways from the coronavirus pandemic is the importance of people to businesses. Global business leaders and executives at leading corporations have indicated that the shift toward talent as the most important source of corporate value has continued. The pandemic also seems to be leading an increasing number of talent-forward companies to take an “employees first” approach.

But this is nothing new for large-scale global businesses. Indeed, the third week of August marked the one-year anniversary of the influential Business Roundtable’s statement on corporate purpose – which puts employees, customers, their communities, and the environment on a par with shareholders.

“Human resources” is trending

It’s also nothing new for club businesses. Our continuous research on club industry trends has shown human resource management and labor challenges to be a persisting trend, one which club managers have reported to be rising in importance – before the coronavirus.

In 2019, human resources was ranked the 6th most-impactful private club trend (out of 27) in a global survey of club managers. And, in a separate Canadian club industry survey, it was identified as both a key risk and primary hurdle to modernizing club management while topping the list of areas which managers say are under-supported from an education standpoint.

The early-pandemic question as to whether COVID-19 impacts would accelerate the business community’s move to stakeholder capitalism, or slow it down as companies focus on short-term financial pressures, seems to have answered itself.

For clubs, the people-related challenges previously reported by managers have exacerbated, with topics like employee willingness to work, labor anxiety, staff recruitment and turnover emerging as key strategic questions which club leaders are currently wrestling.

Widespread COVID-19 impacts like club closures, layoffs, and furloughs certainly haven’t helped ease concerns. With significant changes afoot in staffing, retention, human resource availability, and operational adaptations, clubs are presented with a unique opportunity right now – the chance to reevaluate and perhaps reset their culture.

Got culture?

In clubs, culture IS governance. Sound governance is a strategic imperative primarily because it enables, supports, and nurtures effective strategy. And, as the Peter Drucker saying goes, “Culture eats strategy for breakfast.”

This is extremely important for club leaders.

It’s important because it means that no matter how strong a club’s strategic plan is, its efficacy will be held back by team members, staff, and employees if they don’t share the proper culture.

When the breaks are going against the business, as they are for some right now, the people implementing the club’s plan are the ones that make all the difference. While strategy defines direction and focus, culture is the habitat in which strategy lives or dies.

Now is the perfect time to reexamine your club’s culture to ensure staff square rightly with the club’s strategy. In other words, to ensure that your people are the best fit for accomplishing the club’s goals and objectives. 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 too, either themselves or their roles.

How can club leaders reexamine culture?

The first place to start is by understanding what you’re currently doing for employees. Club leaders require a comprehensive understanding of the club’s current approach to human resource management so that they can determine the alignment of people and culture with the club’s goals.

When was the last time the club audited its human resources approach, policies, procedures, and performance? Ensuring alignment between the club’s strategy and its employee offering is essential in order to enhance the overall club lifestyle, culture, and experience for members and staff.

To help you get started, here are four HR questions private club boards should be asking:

1. How does our current organizational structure sit relative to best practice and what recent COVID-related changes should we make permanent or revisit?

Review your club’s current organizational structure, including both employees and contract workers, against best practice structures at comparable clubs locally, nationally, and globally. This review should focus special attention on the roles and responsibilities of human resources within the organizational structure with the goal of highlighting key gaps or divergences from best practice. Often times in clubs, an overly flat organizational structure tends to create ‘siloes’ that breed inefficiencies and bloat staffing levels.

2. Are we both efficient and competitive in the compensation and benefits afforded to employees?

Complete a comprehensive benchmarking exercise which compares compensation and benefit levels of all key staff and for the club as a whole to comparable clubs and other businesses with whom you compete for talent. The focus of this exercise should go beyond salary and hourly wages, factoring in relevant club financial and operating data, benefits packages, member and employee feedback scores, and other market-related information.

The goal is to identify current and accurate reference points for evaluating current compensation and benefits against best practice. There is a high degree of likelihood that there are opportunities in your current compensation and benefits structure to better align incentives and shift compensation to top talent, which tends to support increased productivity and reduced head count.

3. Are our personnel positioned to help us achieve the club’s goals and objectives? Are we helping them achieve theirs?

Assess your club’s performance tracking and review processes. The goal here is to analyze current performance evaluation processes and procedures to ensure alignment with the club’s overarching goals. This requires the board and executive committee to have a focused, clear, and comprehensive understanding of the club’s mission, vision, core values, and objectives.

For maximum benefit, to both member and employee satisfaction, it is incredibly important that performance is measurable and incentivized. The trick is determining the right way to track and measure performance and tie it to the right incentive.

4. Are our staff equipped with the tools they need to succeed? Are they empowered to do so?

Evaluate your club’s current recruiting, onboarding, training, and ongoing relational efforts. This will likely require management meetings and staff interviews to learn about the current approach and unearth any ideas or recommendations your team may have to suggest.

The success of every private club is dependent on the quality of their staff. Recruiting the best talent, integrating them into the envisioned culture, training them for success, ensuring their satisfaction, and ultimately retaining them is an important goal. The outcome from which tends to have a positive financial impact on the club and on the member experience.

After all, an investment in people is an investment in culture and clubs will benefit from this investment.

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

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

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

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

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

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

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

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

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

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

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

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

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success.

For more information, please visit ggapartners.com.

 

Contact

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

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

Winter is Coming…

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Amidst the euphoria of clubs reopening, EMEA Partner Rob Hill encourages club leaders to look beyond 2020 and plan now to do all they can to maintain those gains, because starting this winter, 2021 is going to bring a whole new challenge.

Numerous UK golfing bodies, clubs and media are understandably enjoying the moment – citing a considerable spike in membership interest and lauding the industry’s resurrection as reason for celebration.

Amidst the euphoria, club leaders would do well to look beyond 2020 and plan now to do all they can to maintain those gains, because starting this winter, 2021 is going to bring a whole new challenge.

The Bank of England has warned that the UK faces its deepest recession since 1709 and the OECD forecasts that the UK will suffer the worst recession in the developed world.

Thus far, the true state of the UK labour market has been disguised by wage subsidies covering 9.1m jobs – a scheme coming to an end in October this year.

GGA Partners Research (A Member’s Perspective, 2020) signals that 43% of private club members expect their disposable income will decline over the next 12 months, while 58% believe their overall consumer spending will also decline.

This new economic environment will first focus its wrath on the 8% of clubs in the UK and Ireland that classify their current cash position as ‘Critical’. It will swiftly sweep through the further 29% that classify theirs as ‘Concerning’.

As far as the COVID effect on member attitudes to returning to use their club, 11% of members signal that they are hesitant, would not return until the Club had been operational ‘without issues’ for a trial period, until rigorous virus testing capabilities or even a vaccine is available. This is particularly applicable to the 70’s+ age group (A Member’s Perspective, 2020), leading to a likely detrimental impact on this demographic’s perceived value for money and relevance.

A study carried out by the English Golf Union as it then was in 2008, identified in the first year of that recession, almost 1/2 of all clubs experienced a decline in membership numbers with “the most significant decrease in the 22-44 age group” – a reflection of the age group that gets hit hardest in an employment downtown. It’s reasonable to assume this trend will be repeated.

By all means enjoy re-opening, celebrate the new demand and interest in the game and membership, and the first profitable quarter for f&b departments in recent memory! But remember what you’re experiencing now isn’t the new normal. That’s coming this winter and it is the responsibility of club leaders to prepare their organisations for the next cycle NOW.

This means addressing any governance weaknesses that may hinder nimble and difficult decision-making. Following proven guiding principles to protect the club’s overall financial health. Protecting the condition of club assets and exploring opportunities for investing in enhancements which will broaden relevance and appeal. Investing in people and their education to deliver efficient and outstanding member and visitor experiences. Investing in a membership retention plan with an emphasis on value, NPS, socialisation, and safety, and investing in an appropriate brand management strategy so that values are communicated effectively to both internal and external audiences.

If you have an interest in reading insights from my colleagues and research from our extraordinary team at GGA Partners, I encourage you to go to ggapartners.com/insights where you can also sign up to receive releases of interest.

A Member’s Perspective: The Shifting Private Club Landscape

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New GGA Partners Research Report Highlights Private Club Members’ Perspective on COVID-19 Impact

More than 6,300 private club members share their attitudes toward the club industry in the wake of the COVID-19 pandemic and how they expect clubs to respond. Now available for download.

TORONTO, Ontario – GGA Partners – international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities – has released the results of a global research survey of more than 6,300 private club members across six countries on four continents.

The research, which incorporates clubs in the United States, Canada, Europe, Australia and China, measures the attitudes and preferences of private club members on club operations and finance in the wake of the COVID-19 global health crisis.

“The coronavirus pandemic has shifted the private club landscape in many ways and these research findings offer insight into the near-future ripple effects with which club leaders must reckon,” explained Derek Johnston, a Partner in the firm. “As an industry advisor for trends shaping private club strategy, our team at GGA Partners is doing all that we can to help club leaders navigate the crisis and strengthen their understanding of how to react and adapt in order to meet the morphing needs and expectations of members.”

Overall results are encouraging; members feel highly positive about the crisis-management performance of their clubs and indicate that the importance of “the Club” in their lives has not been negatively impacted by the pandemic, but rather reinforced.

“In terms of correlation, the more effectively clubs have performed during the COVID-19 pandemic, the more important they became in the lives of members,” stated Ben Hopkinson, Director Client Success and Sales at GGA Partners.  “Together, these results suggest that, for members, the importance and relevance of their club experience is strengthened during emotionally challenging times.”

However, despite the enduring importance of the club in their lives, members’ high-level economic outlook over the next 12 months is more somber: 43% expect their disposable income to decrease and 58% believe their overall consumer spending will as well.  Perhaps most disheartening is members’ outlook on how their club’s financial position will change: 71% envisage a decline, with 20% characterizing the anticipated decline as ‘significant’.

In response to anticipated downward financial pressures, members expect their clubs to adapt operationally by scaling back certain high-touch areas of operations to simultaneously reduce club operating costs and the risk of COVID-19 transmission.  The extent of operational changes is predicted to be moderate in nature – only 12% of participants envision changes characterized as ‘significant’ or ‘drastic’.

The majority of private club members indicate their understanding of the need for operational adaptions to reduce costs, showing stronger support for changes which reduce service offerings and availability than those which increase their cost to belong.

The good news for club operators is the implication that operational scale-backs, service reductions, and restricted/limited access to amenities and activities – essential maneuvers to safely and responsibly navigate a virus-ridden social environment – are unlikely to cause significant membership attrition.  The tough news is that increasing dues beyond the norm – or allowing the value and quality of club amenities to diminish – just might push members away in the short-term.

According to Patrick DeLozier, Director at GGA Partners, constant evolutions in the COVID-19 pandemic place enhanced pressure on the planning capabilities of club leaders.  “It’s really a day-to-day for managers,” he said. “The stop-and-start reality of new case development and safety protocols requires club managers to have up-to-date information and the support of very sound research and data to work through challenges with the club’s board of directors.”

This means that club leaders need to have a plan for what they’re going to do next as the situation evolves quickly and unexpectedly. “The need for data-driven analysis, diligent financial monitoring, and a prepared communications strategy is more prevalent than ever,” DeLozier clarified.  “To sustain forward-thinking, club leaders need to have a ‘Plan C’ for the ‘Plan A’.  Pandemic-related changes are so rapid that, if you can’t adapt quickly, you’re well behind the eight ball.”

These results and more are detailed in a report titled A Member’s Perspective: The Shifting Private Club Landscape, now available for download.

Click here to download the report and see the findings

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success.

For more information, please visit ggapartners.com.

 

Contact

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

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. 

Dangers of Depersonalizing the Member Experience

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As new innovations continue to help streamline club operations, GGA Partner Henry DeLozier cautions against replacing staff with technology and removing what can be priceless interactions for members and guests alike.

Most clubs today are facing the dual challenges of rising labor costs along with ever-greater member expectations.

In our modern digital age, the obvious solution for many has been to systematize and automate services wherever possible across their operation.

But while this may be cost efficient, clubs must beware…the result is often the depersonalization of member services.

Remember, clubs share an emotional – not transactional – relationship with members. And both research and experience have shown us that the best member services are strictly personal.

For a club, to depersonalize is to chip away at the very foundation of your business.

Here are five tactics for personalizing services at your club:

1) Reserved or Reserved for…?

Recognize reserved tables with a reserved placard that displays the name of the member for whom the table is reserved. It’s a small touch which underscores that “we have been anticipating your arrival”. These little efforts add more to the member experience than you might think.

2) Monitor Club Communications for Engagement

Most clubs blindly issue email communications to members with little-or-no tracking to understand if the message was even received – let alone opened, read, or acted upon.

Follow up your club’s emails with calls to individual members who are not opening or engaging with club communications. Ask if the messages are being received (although your analytics will have revealed this already). This is a chance to learn what topics interest your members…and which topics don’t.

3) Personalize Your Club’s Communications

As suggested above, develop a personal communications profile for each member.
As with Facebook or LinkedIn, you can enable members to populate their own profiles (though some members who are not computer natives will need help with this).

This allows you to learn what topics interest each member, in what media they prefer to received messages, what days and times they want the messages to be delivered, and from whom at the club they wish to receive important information.

In essence, stop issuing “Dear Member” communications.

4) Meet with Members

Whether one-to-one or in small (fewer than four people at a time) member groups, meet to discuss the club and its various priorities. Ask members for their feedback, learn their priorities, and ensure that they know and understand the board’s strategic priorities too. This will make them feel included, valued and empowered.

5) Facilitate Member-to-Member Introductions

Most members are truly acquainted with very few of their fellow members, but clubs are more fun when people know more people.

There are several ways you can help this along, such as hosting multiple welcoming events for new members, enlisting your board, committees, and staff to become the “connectors” between members, and creating a digital (online) member directory to help members learn more about one another.

Using the member profiles described above, you can personalize the effort by connecting people with similar backgrounds – such as universities attended, hometowns, or places of employment.

Keep in mind that private clubs are a platform for socialization. An undeniable characteristic of successful clubs is the sense that “everyone knows one another”. Help your members get to know one another and, in so doing, make your club ever more relevant to the members.

Ultimately, the key is to treat your members as the valuable resource that they are. Keeping your services personalized will help them know that they are recognized, respected, and valued, and provide the strongest possible foundation for your club going forward.

Millennials and the Value Proposition at Your Facility

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A First-Look at 2020 Millennial Golf Industry Research Findings

In ongoing research collaboration with Millennial golfer organization Nextgengolf, GGA recently updated its study of the habits, attitudes, and preferences of Millennial golfers.  The 2020 study brings forward survey findings from over 1,600 Millennial golfers and builds upon research conducted in 2017, 2018, and 2019.

A preview of this year’s research findings was unveiled in a presentation delivered at the 2020 PGA Merchandise Show by GGA Partner Henry DeLozier and Director, Nextgengolf Operations, Matt Weinberger.

Titled “Millennials and the Value Proposition at Your Facility”, the session introduced key insights and observations from the latest research and supplemented these findings using personal anecdotes shared by participating Millennial golfers.  The session explored what these findings mean for golf facilities and highlighted several tactics some facilities have implemented to enhance their value proposition to Millennial golfers.

Over the next few weeks, be on the lookout for a full, in-depth report of findings.

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Research Overview

In many clubs today, the long-held expectations and perceptions of existing, ageing members are at odds with the entirely different needs and expectations of a new wave of younger, more casual members.  The challenge for clubs?  To create an environment which not only appeals to the new wave, but where members of all types can coexist.

Research findings highlight how golf clubs can adapt and develop their offerings to meet the needs of the next generation of members and customers.  The goal is to provide valuable insights about Millennial golfers, the challenges they face, and the opportunities for clubs to help support the long-term sustainability of the game and the industry as a whole.

Background

As the leading entity for team-based golf in the United States, Nextgengolf connects Millennials to golf and supports the success of their game while GGA specializes in solution engineering and problem solving for golf-related businesses.  A fusion of GGA’s 28-year history of private club research and Nextgengolf’s connection to young golfers afforded the unique opportunity to study a highly valuable Millennial audience.

The survey sample focused exclusively on a sample audience of active, avid Millennial golfers with prior golf interest and experience in tournaments or golf events.  To date, more than 5,200 survey responses have been analyzed during the four-year research study.

Thank you to the Club Management Association of America (CMAA) for the support that makes this research possible.

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