Tag: metrics

Key Metrics for Effective Management of Gen Z

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Generation Z (Gen Z), representing those born between 1996 and 2010, is quickly graduating from “children of members” to Junior and Young Executive membership categories in many clubs. Aged 10-25, this next generation follows millennials into private club membership and is set to become an important part of a club’s generational mix. Many of today’s key performance indicators (KPIs) focus on a broader vision that reflects a club’s priorities, values and purpose. Clubs who are proactive in addressing the needs and wants of this next generation will be poised to benefit from protection against rising attrition from a more vulnerable generational mix.  But how, exactly, should clubs cater to the priorities of Gen Z members and what information will help them to do so?

Clubs who seek to attract and retain Gen Z members will need to both understand the specific needs of this generation and know what data to track to determine whether those needs are being met. Learning about Gen Z, and what differentiates from past generations, will help identify successful strategies to engage a group who is soon set to reach full purchasing power.

The following metrics will assist Boards in making better business decisions related to Generation Z:

Generational Mix

The club’s Generational Mix outlines the percentage of members belonging to each of the generational groups. Traditionally, these generational groups include the Silent Generation (1928 – 1945), Baby Boomers (1946 – 1964), Generation X (1965 – 1980), Millennials (1981 – 1995), and now, Generation Z (1996 – 2010).

A club’s Generational Mix can say a lot about its culture and how it evolves over time. The mix can also reveal age clustering whereby there is insufficient distribution among the generations, making the club more vulnerable to large waves of attrition. Tracking the mix over time can identify historical trends and provide the opportunity to predict the future mix, allowing for the appropriate infrastructure to be implemented to meet the needs of future members.

Boards should regularly monitor and evaluate their club’s generational mix. For example, the MetricsFirst Lifecycle Dashboard identifies generational trends of various segments within club membership.

Diversity Profile

Gen Z are a diverse generation to the extent that they tend to take diversity for granted and have been taught by their Gen-X parents to disdain outright exclusivity. Tracking diversity markers, whether by race, gender, age, marital status, or otherwise, is helpful to understand the profile of your membership and how it is changing over time.

Clubs need to understand who Gen Z’ers are and where their priorities lie. The new generation expects organizations to take a stance on societal issues and are keen observers of how they are behaving in and out of the boardroom. Gen Z will expect governance from a Board that is as diverse as its membership – understanding how diversity, equity and inclusion is not just supported, but encouraged and represented throughout the Club, will be of value to this next generation.

Careful attention should be paid to how this data is collected, tracked, and utilized by clubs and boards. It is vital that appropriate, inclusive language is considered when requesting this information from members and emphasis placed on using the data to create an inclusive environment. External expertise may well be required to determine how best to obtain and safeguard this sensitive data.

Digital Engagement

Born into a world of technology, Gen Z is the first truly digital generation. This cohort expects private clubs to embrace technology as a complement to their overall customer service experience rather than a replacement for it. Clubs must focus on creating experiences for Gen Z’ers who understand and communicate using technologies like social media. This group’s natural use of technology will influence how clubs not only operate but engage. In addition to employing technology within the club environment for efficient ordering, registration, voting, etc., clubs should consider how technology, particularly social media, can be leveraged to drive engagement with existing members and to recruit prospective members.

The Net Promotor Score (NPS) is a valuable metric to track engagement and should be a standard metric employed to measure loyalty, which is important to younger generations. Social media metrics, such as likes, shares, and follows, are also helpful to track, and can be analyzed to determine content the membership finds most engaging. Remember to move beyond simply counting engagement – it is just as important to understand which social platforms members engage with to tailor content to those specific platforms. TikTok content creation is much different than content developed for LinkedIn. Tracking engagement to understand where to focus resources across social platforms contributes to effective management.

Amenity Utilization & Compaction

Gen Z’ers expect flexibility in their work and personal lives, with the ability to work in hybrid-type jobs and environments. Successful clubs will ensure that amenities are available on-demand to meet these needs. Boards should pay careful attention to the long-term planning for capital expenditures and human resources to make sure that the right mix of amenities is available to encourage long-term engagement between Gen Z members and their clubs. Opportunities may arise for utilization of club services and facilities in traditional off-peak windows, providing further incentive for clubs to encourage this next generation to engage with club membership earlier than previous generations have traditionally done so.

Metrics that identify compaction periods, and conversely, periods with excess capacity, will help clubs to take advantage of the flexibility Gen Z’ers bring.

Tracking club activity using member card swipes, digital card scans on mobile apps, or even facial recognition technology can help clubs better understand overall utilization. Combined with program participation (personal training lessons, class bookings, event registrations, etc.) and a valuable picture comes into focus of overall utilization, which can easily be broken down by demographic.

Gen-Z is defined by its prioritization of diversity, equity and inclusion, comfort with (and reliance on) technology, and expectation for on-demand services to meet flexible schedules.

As this rising generation begins to come of age in parallel with the “new-normal” of life post-COVID-19, clubs are faced with the opportunity to evolve to meet the needs of Gen Z. Leveraging data effectively will assist to understand what actions to take to do this. Private clubs contain a wealth of important data, with access to demographic, utilization and engagement metrics that can be very challenging to obtain in a more traditional business environment. The strategies that clubs can implement by analyzing this data more effectively have tremendous potential. Clubs that take advantage of the changing landscape of a post-COVID world to meet the needs of Gen Z are poised to benefit from the diversity this generation brings.

This piece was authored by GGA Director, Liz McDowell CPA, CA, CCM, and Trevor Coughlan, Vice President of Marketing at Jonas Club Software for Boardroom Magazine. 

The Conversations That Shape Business Results

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Every club manager understands the value of effective conversations, with members, guests, employees, Boards and other stakeholders. Equally as important, is how the club approaches these conversations. What steps should clubs take to obtain the valuable information to hold effective conversations?

Surveys have historically served an essential role in building and maintaining successful club operations. As data analysis methods and technologies advance, surveys are now offering insights derived from data collected that were not previously available. In addition, surveys offer a valuable relationship-building practice with members and employers, the feeling of being heard.

As data-informed decision making has become increasingly vital in club management, surveys continue to serve a crucial role in the member feedback loop as clubs continually collect the right data to inform their operational strategies.  While operational and market data create a general understanding, surveys can target specific areas of interest to deliver unique insights that allow clubs to enhance their operations.

Types of Surveys

Surveys at clubs can be utilized for a variety of reasons, but all with the common goal of gathering data that can be used to inform decisions.

Member surveys are common and effective ways of gathering data. These can be in the form of an annual satisfaction survey, strategic surveys, or short pulse surveys aimed at capturing members’ opinions on a smaller range of topics (for example, food and beverage). These surveys usually have the highest levels of participation due to their short length. Overall, what separates member surveys is the customizable availability of the right data to identify opportunities for the club. By asking members their opinions and then acting on that information, members understand what they were asked, and they know the data is being used to keep their best interests at the heart of any changes.

Recent advances in statistical analysis allow clubs to extract even greater insights from satisfaction survey questions. One common error is to focus on those areas of the club that have the lowest satisfaction ratings. Instead, it is important to identify which areas of the club could benefit the most from investment to deliver ROI for members. Using advanced techniques allows clubs to identify touchpoints that can drive increased overall satisfaction by eliminating dissatisfaction and find those targeted risk areas that can negatively influence the member experience.

Another form of club surveys is the employee survey, which is becoming more popular at private clubs, especially considering the labour challenges that many have faced over the last few years. Like member satisfaction surveys, these surveys measure the satisfaction amongst employees regarding performance reviews, tools and resources, training, as well as their relationships with other staff members and club members. These surveys are a valuable way to build morale and satisfaction amongst employees, which contribute to increased retention rates.

Benchmarking Satisfaction

Satisfaction ratings are important to help make decisions. Changes in member preferences, economic conditions, or the industry are often reflected in satisfaction ratings and can be tracked and highlighted if the survey is repeated annually. Maintaining benchmarks as accurately and comprehensively as possible,  but also club and member profiles to provide segmented understanding, becomes important so you are aware of whether changes at your club are reflective across the industry, or which areas of club operations should be focused on the most.

During COVID-19, it was common for access to tee ratings to decrease and create strain on the golf course due to demand that exceeded previous years. Demand levels have begun to fall slightly in 2022 but continue to be far higher than before the pandemic began. Furthermore, understanding industry survey trends and best practices falls into favour when conducting surveys. For example, food and beverage operations are typically the most scrutinized area of club operations. However, a lower satisfaction rating for dining than the satisfaction rating for the golf course fairways does not necessarily mean that your club is struggling in that area. Accurately benchmarking this area of operations is important for club managers and their Boards to understand whether their ratings are unique or concerning.

Planning for the Future

Surveys are a useful tool for future planning at the club, ranging from interest in new amenities to changes to the club’s future vision. Asking members about their interest in potential capital projects helps prioritize these projects. Ensuring that members are asked about their tolerance to pay for these projects is an important consideration as this knowledge will help significantly in the planning/budgeting phase.

The club’s vision is another important aspect in helping the Board and management with decision-making and guiding the club into the future. Asking appropriate questions on members’ opinions of their future vision of their club offers them the opportunity to help guide the club’s positioning, based on their perceptions of the ideal private club experience.

Five Tips for Developing an Effective Survey

  1. Avoid including leading questions or those that may lead to confirmation bias as members want to know that their opinions matter, and that decisions haven’t already been made about changes to the club.
  2. Regularly conduct surveys, annually, if possible, to accurately track trends in satisfaction levels and member preferences as part of a larger data strategy.
  3. To prevent higher drop-off rates and lower response rates, keep the survey brief.
  4. Consider offering rewards or incentives for completing the survey and send gentle reminders; this typically increases the response rate, reduces costs, and is better for the environment.
  5. Ensure you ask questions to effectively segment the data to identify member differences; demographic questions are important but layered techniques, such as family life cycle, yield deeper insights.

As data collection methods and technologies continue to evolve, clubs that engage their members, employees and relevant stakeholders will gain a strategic advantage. Holding the conversations that matter and subsequently acting on what is needed will contribute to keeping your club connected, competitive and successful.

This article was authored by Michael Gregory, Partner for the Club Management Association of Canada’s Club Manager Quarterly Magazine. 

Webinar 5/5: The Most Underrated Club Metrics

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Jonas Club Software & GGA Partners to Co-host a Webinar Revealing the Most Underrated Club Metrics

Markham, ON Canada – Join Jonas Club Software and GGA Partners, the trusted advisors to the golf, private club, and leisure industries, in a special webinar event, discussing the most underrated club metrics that clubs should be paying attention to in 2021. With private clubs undergoing so much transformation in the last 12 months, many clubs are experiencing trends of rapid change and, as a result, require a plan to monitor membership like never before.

Focusing on metrics to help club management make more informed decisions, the session will cover metrics focusing on membership demographics, risk, spending and utilization. The session will be co-presented by Trevor Coughlan, VP of Marketing and Mark Darling, Product Manager – MetricsFirst, of Jonas Club Software, and Derek Johnston, Partner and Martin Tzankov, Senior Manager of GGA Partners.

The session will take place on Wednesday, May 5th, 2021 at 1:00 P.M. ET.

If you would like to attend this 45-minute session, registration is available for free by visiting: https://attendee.gotowebinar.com/register/6315081732484665869.

Register for free →

 

About Jonas Club Software

Jonas Club Software helps clubs thrive by focusing on the creation of exceptional experiences. These experiences are delivered through industry-leading services, integrated applications, innovative technology, and long-term partnerships with the clubs we serve.

Over 2,300 clubs in more than 20 countries, with memberships ranging from 20 to 20,000, utilize Jonas Club Software technology. With applications ranging from Accounting to Retail Point of Sale, Tee Time Management, Court & Class Booking, Dining Reservations, websites and Mobile Apps, Jonas Club Software is the standout choice for clubs driven to offer exceptional member experiences. For more details visit www.jonasclub.com.

 

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. GGA Partners has offices in Toronto, Ontario, Phoenix, Arizona, Bluffton, South Carolina, and Dublin, Ireland. For more information, please visit ggapartners.com.

 

Media Contact:
Trevor Coughlan
Vice President, Marketing
Jonas Club Software
Trevor.Coughlan@jonasclub.com
1-888-789-9073

Running Toward Change

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

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

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

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

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

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

Don’t be surprised – be prepared.

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

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

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

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

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

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

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

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

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

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

Looking Outside the Boardroom

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Board members are an important source of experience and knowledge. But when making strategic decisions on the future direction of the club, that expertise can easily be hampered by a lack of access to valuable data and actionable information.

GGA’s Bennett DeLozier explains how to connect your board with the critical insights they need from outside the boardroom.

Scenario: you’re a manager, it’s sunny, you’re in a board meeting, fluorescent lights buzz overhead.  The group is brainstorming capital improvement projects ahead of next season.  The topics of budget, capital reserves, assessments, competitor offerings, and attracting new members swirl around the room.

Someone claims that what members “really want” are new amenities, another counters that new amenity supporters are mostly younger members in restricted categories, a third comments on the price of dues for this group.  Opinions begin to diverge on membership pricing, someone mentions member satisfaction, people start using the word ‘should’, and a healthy, productive conversation turns to conjecture.

In this situation, a common reference point can bring everyone back on task. You’re confident you probably have data points on all of these topics somewhere in your office or in your inbox.  You’re scrolling, scrolling.  Before long, the meeting adjourns with decisions on hold, and you leave with a list of research tasks and staff projects to tackle in advance of the next one.

Board Members Need Information

While this scenario may be an overdramatization, it’s not terribly uncommon.  This is what happens when intelligent, capable people face important decisions without actionable information.  It deters strategic thinking and is taxing for the manager and staff.

Board members are usually smart, business-oriented people and they expect to have empirical discussions just as they have done in their own line of work.  Their job is to strategize, and a strategy is only as good as the information which informs it.

The most effective club managers gather, consolidate and deliver a war chest of information to the boardroom in order to facilitate better, easier, and quicker decisions.

The Right Kind of Data

A word of caution: not all data is good data and managers are wise to beware the data ‘dump’.  So, what does the right kind of data look like?

  • Data that is current. In a perfect world, the provision is real-time data and predictive analytics.  Data should be updated as frequently as possible and be on-hand for timely, relevant insight before annual planning exercises and performance monitoring activities take place.  In some markets, data that is 12 months old is out of date.
  • Data that comes from multiple sources. A combination of internal club data and external market data are required to be informed at both a micro and macro level.  Data from the club’s management and point-of-sale systems or reports from department heads alone doesn’t cut it.
  • Data that is useable. In presentations and speaking engagements we’ll often joke about the graveyard for strategic plans: in a three-ring binder on your credenza collecting dust.  Cheeky, but true.  Data should be readily available and accessible in a digestible manner.  Having to look for it, go get it, wait for it, or set-aside-15-minutes-for-everyone-to-skim it usually means your data isn’t seaworthy.
  • Data that works for you. Transferring the right kind of data to your board requires you to have a framework for gathering, analyzing, and succinctly documenting all the research and information that is Your data framework should not create more work for you. In other words, you need technology to gather, centralize, and process that information into synthesized insights.

What kind of information do boards want?

They want consolidated internal data to inform them about the club’s financial and operational performance, as well as member satisfaction, habits, preferences, and attitudes.  They want external data which informs them about competitive offerings, prevailing market trends, industry standards, and helps them contextualize the club’s performance relative to others.

Most importantly, they want to know about progress – where the club is now relative to where it needs to be or where members want it to be.

Why don’t boards have this type of information?

Simple. Because their manager hasn’t given it to them.  Usually the manager hasn’t given it to them for really good reasons: they don’t have the time, resources, money, or – in some cases – the culture to support data-driven decision-making.

To be clear, managers should not be expected to have the ability to answer every question which comes their way.  However, they should be expected to successfully guide the process of strategic decision-making at their club.  Here are six tips to make you more efficient and effective at connecting your board with critical insights:

  1. Survey members on satisfaction every year, if not more regularly. Be deliberate and selective with attitudinal surveys, capital improvement surveys, and club votes, but be adamant about doing a satisfaction survey every year.
  2. Know your market inside and out, literally. Knowing your internal market means helping your board know the club’s performance and members.  Knowing your external market means keeping your board apprised of competitors, industry standards, trends, and best practices.
  3. Maintain a constant grasp on the state of your club’s operational and financial data. Being able to reference, provide, or recite details about the club’s finances and operating performance is one of the most effective ways to enhance your command presence in the boardroom.
  4. Keep your data organized and ready to go on short notice. Get yourself in a position where you’re prepared to deliver an informed response to any questions which come your way or threaten to derail a productive discussion.
  5. Report on performance metrics before you’re asked. Be proactive about regularly updating your board on current status, changes, and evolutions within the club.  As the saying goes, they don’t know what they don’t know.
  6. Build upon your data and monitor how it changes over time. This will provide your board with a sense of progress and will serve as a powerful cache of information when it comes time for your annual performance evaluation.

Partnership Promises Leading Edge Analytics For Clubs

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MetricsFirst and GGA partner to provide leading edge data analytics to the club industry.

TORONTO, Ontario – MetricsFirst and Global Golf Advisors (“GGA”) are pleased to announce the formation of a strategic partnership to provide leading edge data analytics to the club industry.

The MetricsFirst technology platform, combined with GGA’s deep analytical expertise will provide clubs around the world with seamless, real-time dashboard reporting and diagnostic and predictive analysis tailored to the specific needs of every key decision maker.

“We are excited to partner with Global Golf Advisors and offer MetricsFirst within our industry, assisting clubs with retrieving, analyzing, and taking proactive action based on the information that exists within multiple systems they are utilizing. We are providing the ability for clubs to make important strategic decisions through the data and metrics provided by MetricsFirst,” said Joe Oswald Chief Operating Officer at Jonas.

“GGA has provided data driven insights to the club industry for over 25 years. During that time period, we have been fortunate to help some of the world’s top clubs develop and implement a game plan for success – one that is informed and supported by business intelligence and data analytics,” explained GGA Partner, Derek Johnston. “We are thrilled to partner with the MetricsFirst team to translate GGA’s proven approach to analyzing club performance into an affordable, real-time data analytics platform.”

Derek Johnston added, “We view this partnership as a strategic pillar in our quest to continuously improve the tools and solutions we offer our clients.”

For more information on MetricsFirst please visit www.metricsfirst.com

For more information on GGA please visit www.globalgolfadvisors.com

Media Contact:
Vache Hagopian
Managing Director of MetricsFirst
Vache.Hagopian@jonasclub.com

Strategic Intelligence Overview: Part 3 of 3

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Top performing clubs around the world are finding newer, faster and more efficient ways to leverage business intelligence and create competitive advantages for their clubs. The first two articles in this three-part series included what business intelligence is and why it is important (see “Strategic Intelligence Part One,” September 2018) and how to use and implement business intelligence (see “Strategic Intelligence Part Two,” October 2018). The final article will identify desirable outcomes and key results for clubs that have leveraged data.

While the initial infrastructure set up does require an investment of time and money, business intelligence should be viewed as a tool to aid and support club leadership with sound decision making and strategy, not another chore to be completed. Informed decisions require a combination of competitor, market and operational data along with member feedback data. Many clubs use this information anecdotally and it hinders everyone from staying on the same page.

One of the most important benefits of utilizing a strategic intelligence process is the time and effort saved during board, committee and staff meetings due to reduced deliberation and off topic discussion. “It’s hard to argue with the facts,” stated Derek Johnston of Global Golf Advisors. “But those facts still need to be secured, analyzed and regularly prepared, which can be time consuming.”

Johnston shares that a Global Golf Advisors client recently had a breakthrough because of the information brought to light through its strategic intelligence process. “Club X had always raised annual dues by 2.5 percent each year but its bottom line was struggling due to labor and other cost increases. A historical trend analysis of key competitor clubs revealed that Club X’s competitors had been raising dues annually by an average of four percent for the past three years. In addition, member survey feedback identified high satisfaction in the Value for Money category. Armed with this data, Club X raised annual dues by five percent without backlash and is planning similar increases in the future as long as subsequent data supports it.”

Another client, Club Y, had recently completed a major renovation that included the addition of a fitness and racquet sports facility. The club was achieving member satisfaction ratings above comparable clubs but was struggling to recruit an ample amount of new members each year. According to Johnston, Club Y’s lead generation relied heavily on member referrals with minimal marketing effort beyond the current membership.

Using mapping, demographics and real estate trends to enhance marketing effectiveness, Club Y implemented a tracking process to identify the source of the prospective member lead along with the lead’s home address. This process exposed a significant disconnect. Leads that came from new members had a conversion rate of 17 percent over the past five years. Leads from tenured members were less than four percent. This data lead to healthy discussion and ultimately a new strategy for lead generation and membership sales.

When asked the question, “What does strategic intelligence success look like?” Johnston answers with “Readily available data in every board and management meeting that is analyzed and presented in a manner that improves the efficiency of the meetings, enables more focused discussions and results in a higher quality output. Ultimately strategic intelligence leads to a superior strategy and increased support for the decisions that club leaders make.”

This article was authored by GGA Partner Derek Johnston for the Private Club Advisor.

Strategic Intelligence Overview: Part 2 of 3

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Clubs are beginning to discover the power of utilizing data to operate more strategically (see “Strategic Intelligence Part One,” September 2018). While enterprise grade analytics platforms that help to consistently track and analyze data may still be out of reach for many clubs, Derek Johnston of Global Golf Advisors says there are steps clubs can take now to lead to better decision making. He recommends club managers start with straight forward objectives for using and analyzing data:

  1. Inform key decision makers at your club with customized, accurate, timely and actionable intelligence about your club’s membership, market, operations and finances.
  2. Improve productivity and effectiveness of board and management meetings with sophisticated and reliable business intelligence.
  3. Help club executives efficiently and effectively evaluate, develop and adjust strategy on an on-going basis.

In order to effectively collect, analyze and present the right information to the right audiences, Johnston suggests you look at your club’s strategic plan and overall club goals to identify the key questions you need to answer first. For example: If your goal is to increase intermediate membership conversion rates and build a larger pipeline, some of the things you would likely want to know are:

  • Conversion rates of intermediate membership over the past five years.
  • Number of prospects in your pipeline in the past five years and how many are in it currently.
  • Reasons intermediate members have and have not converted in the past.
  • Preferences and attitudes toward the club of those who have converted to full membership in the past.
  • The size and make-up of their personal networks and their willingness to recommend the club.

“If you could gather all of this information, track it and trend it over time, you could come up with a pretty good action plan to achieve your goal,” explained Johnston. “Work through this exercise for each of the most important categories of strategic intelligence: governance, membership, market, utilization and participation, employees, operations, capital and finance.”

Once you know the information that you need to frame your decisions, then you can begin to source the information from both internal (POS, member database, P&L) and external sources (population demographics and psychographics, real estate data, social media, web traffic, etc.). When you have the necessary data, you can analyze it in a way that considers your club’s unique circumstances, visualize the information in a manner that provides historical context and trends, and then determine the best approach for presenting the information to the various decision makers at your club.

Stay tuned for Strategic Intelligence Part Three in the next issue which will address examples and the key results of clubs that have leveraged data to achieve a desirable outcome.

This article was authored by GGA Partner Derek Johnston for the Private Club Advisor.

Strategic Intelligence Overview: Part 1 of 3

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As the world becomes more data centric, the club industry is beginning to discover the power of utilizing data, research and analysis to operate more intelligently and strategically. According to Derek Johnston of Global Golf Advisors, informed intelligence planning increases the likelihood of current and future success.

The biggest challenges clubs face in their quest for better strategy is how to source and analyze the data and then apply that intelligence to determine future action. Comprehensive business intelligence is extremely important for clubs, especially those where boards are comprised of volunteer members with varying backgrounds and professional experience. “Everyone must be working from the same set of facts when discussing and ultimately setting strategy,” Johnston said.

Business intelligence is often new to clubs and tends to be misunderstood. “Simply put, you want to use information to help determine what has happened and why,” he explained. Using data to derive insight that helps with decision making is most impactful when 1) internal and external data from multiple sources is synthesized, 2) combined with experience and key business assumptions and 3) enabled by technology in order to identify unique insight.

“This means that relying on financial information or data from your club’s information system is not enough. It will not provide the specifics needed to develop the most successful strategy for your club,” Johnston warned.

Global Golf Advisors believes business intelligence requires a 360-degree view of all the factors impacting a club’s success from competitive market forces to member perceptions to operational and financial performance evaluations. It should also be defined based on who will be using it and the reason for which they will be using the information. Global Golf Advisors warns that anecdotal information in a board room is distracting and disastrous.

“Develop a strategy that supports both operational and strategic decision making that goes beyond typical financial data and key performance indicators. The top performing clubs around the world are consistently tracking, analyzing and reporting data to leverage intelligence and create competitive advantages,” Johnston concluded.

Stay tuned for Strategic Intelligence Part Two in our next issue which will address how to implement key practices to establish a strategic intelligence process at your club.

This article was authored by GGA Partner Derek Johnston for the Private Club Advisor.

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