Tag: president

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

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This article also featured in Golf Course Industry magazine. 

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.”

Planning For a Crisis

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

On March 4, 2015, a single-engine, World War II-era training plane crashed onto the Penmar Golf Course in Venice, California, shortly after takeoff from a nearby airport. The pilot, who sustained only minor injuries, was none other than Indiana Jones, aka Harrison Ford.

Coverage of the plane’s crash and its famous pilot was extensive in local Southern California markets and across entertainment and mainstream media. A New York Times story the next day quoted spokespeople for the Los Angeles Police Department, the LA Fire Department and the Federal Aviation Administration – but not from the Penmar Golf Course. Public relations professionals would call that an opportunity squandered.

What if Indiana Jones landed on your golf course … or your data system was breached and hundreds of members’ credit card numbers were exposed or, heaven forbid, an employee died after being infected with COVID-19? Are you ready to deal with major media opportunities and crises professionally and in a way that, depending on the event, either enhances or protects the club’s and the course’s reputation and brand?

We like to say that you can’t predict a crisis, but you can – and definitely should – plan for one. The same goes for an opportunity to shine your brand. Here are four important steps to do both:

1. Designate a spokesperson.

Everyone on staff – especially at the management level – should know who has the authority to speak to media regarding these types of events. Usually there is only one person with this authority. Consolidating official comments and responses through one spokesperson – ideally someone with media training – keeps messaging consistent, reduces the likelihood of inaccurate information being disseminated and clarifies sources for media. Everyone at the course and around the club should know to direct all media inquiries to the appointed spokesperson.

2. Establish communications protocols.

The media react and report on their schedule, not yours. That means that you should have an established protocol that identifies and prioritizes what must be done, when it should be done and by whom. Having anticipated the media’s needs – including their first and most logical questions and the steps you’re taking to respond – puts you in control of the situation and keeps you from playing defense as the story unfolds. Other protocols include:

– Knowing which emergency responders should be notified. (Keep their contact information handy and updated.)

– Knowing who will notify the course owner, club president and board members.

– Knowing who will notify staff and what they will be told. (All employees must be notified of dangerous on-the-job conditions.)

3. Prepare for the unexpected.

Plan your work and work your plan. Knowing that unforeseen events always seem obvious in retrospect, develop an after-action perspective to anticipate circumstances that could arise:

– Request that your insurance provider conduct a risk assessment of the course, clubhouse and all club amenities. Conduct what-if evaluations with experienced professionals whose advice can be incorporated into your plans.

– Request a site review and evaluation from police and firefighters to anticipate problems that can be prevented or lessened.

– Assign key managers at your facility regular check-up actions to mitigate risks identified by the experts.

4. Inform and educate staff. 

Knowing what to do is critical. That’s why the military calls it training. Assume direct responsibility for training your team; do not delegate this important duty. When you thoroughly educate team members, they’ll understand that this is a mission-critical topic.

– Conduct department training meetings. Put the collective knowledge and intelligence of your team to work by asking line-level staff to identify any threats or risks.

– Rehearse the unexpected. Stage situational training during off-season or slow periods to help your team focus on preparedness.

What are the odds of Harrison Ford dropping unannounced onto your golf course? Or of a cyberattack or COVID-19 victim at your club? Not good, right? But is that a bet you want to take?

Embedding a Culture of Progression and Longevity Among Board Members

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Each new set of Board members are faced with the same conundrum: the desire to achieve things and make a difference, but only a limited term with which to do it. The answer to this issue, is to instill a sense of mission and to focus the attention of Board members on longer term issues. GGA’s Rob Hill delivers the key insights.

Formulate a proper orientation

Every board, just like a club, has its own culture which is defined by its traditions and practices, and every new board member deserves a focused introduction to this culture if they are to be expected to adapt and contribute from the outset of their term.

Orientations vary greatly, but no matter the approach, they offer an extraordinary opportunity to focus new and existing members on the club’s vision, mission and the long-term strategic business priorities of the board.

It’s also the ideal environment to emphasize the progress made by the club and immediate actions to be undertaken, both of which underline the responsibility the board holds: to advance a plan, to make meaningful progress, and for this be aligned to an overarching strategy so that there is continuity of effort.

This sense of collective effort – of accountability, of building on the work of others, of advancing a plan closer to its successful conclusion ­– is often inspiring for new board members.

Focus on the future

Clubs traditionally start meetings with minutes and committee reports that contain minutiae and operational items that are reflective of what has already happened, but ideally a Board should be focused on strategy (the future) and policy.

Everyone (Boards and GM’s) would rather spend their time on the concrete things and events that they can touch and feel, rather than the conceptual – strategy and planning.

You have to challenge these instincts using a “Consent Agenda”. Effectively, the Hon Sec and Club Manager should carefully plan not only the details of the agenda, but, crucially, the order too, in order to keep strategy at the forefront of Board business.

It takes several meetings and a commitment up front, but over time it helps to shift the emphasis toward the future.

Face resistance with facts

Should a Board successfully navigate the strategic planning process and adopt a long-term plan, it should not make the mistake in thinking that the hard work is over, or that all of its future members will support it without question.

It is common for plans to be questioned and tested. After all, if Board Members are to be tasked with the implementation of a plan, it is only right that they can challenge elements they doubt. Board governance is most successful when Members ask the right questions, put forth new ideas and challenges, and continually refresh and renew the Club’s goals.

Where a Board Member is strongly resistant to elements or the entirety of a strategic plan, this is often the result of either: a belief or conviction based on their experience, or a feeling that a plan only serves as a straitjacket which prevents them from imposing their own will on the Club.

In such an instance it is important that facts are established. That way, any questions of validity or appropriateness are based on evidence rather than purely belief or emotion. Board Members can passionately state a personal position in opposition to components of a plan, but they should be expected to support their positions with facts.

Foster a shared vision

 A strategic plan is certainly a powerful tool for facilitating continuity of tenure. However, it should never be considered a silver bullet. A strategic plan, no matter how good it is, will not cure all ills.

Long-term success requires alignment of the entire club. Only when the board, executive leadership, committees, members and staff are fully aligned behind a shared vision, when you consistently communicate your successes and progress, when the entire club believes in and sees the positive impact of strategy does real momentum build. Indeed, over time, this becomes integral to the fabric of the club’s culture. It becomes a habit.

Key takeaways

  1. A Board orientation is a powerful tool for maintaining continuity and momentum. It is a matter of educating volunteer leaders on the mechanics of the Club, the responsibilities they have toward it, how the Board functions, and, importantly, the strategic goals and actions toward which the Board is working.
  2. It takes determined and committed leadership to keep a Board focused on the Club’s future rather than obsessing on the past. Tools such as a consent agenda can support this focus, as will enlisting the strategic action plan as the central focus of each Board meeting.
  3. Successful plans are built on intelligence and facts. This not only makes them more likely to succeed, but will protect them from those who are resistant to change.

This article was authored by GGA Partner Rob Hill.

How to Be a Great Board Member

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“The most effective private club board members park their personal agendas at the door and work collectively for the betterment of all members.”

GGA Partner Henry DeLozier discusses “Servant Leadership” at the Board level in an article written by Mike Stetz for Golf Inc. Magazine’s March/April 2018 Issue.

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