Tag: Rob Hill

The Change Study: Preparedness (UK/IE Report)

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The first of three survey reports in the GGA Partners change research initiative, these survey findings focus on what we refer to as the “Preparedness for Change” at clubs throughout the United Kingdom and Ireland. To discuss these findings and learn more about the research initiative, contact Rob Hill Partner, EMEA. 

The Management of Change in Golf and Private Clubs

As the global economy hurtles forward in complex and surprising ways, private clubs must adapt to survive. The wider world of golf is also facing dilemmas, as its market shrinks. But while innovation and disruption are the key elements driving broad economic change, private clubs cling to tradition and honour-established customs.

What is the best approach to reconciling these divergent tendencies? How can clubs preserve their identities while adapting to a changing world? How can club leaders drive the change that is needed for their clubs to thrive in the future? Where do private clubs fit within golf’s shifting cultural and financial environment?

Managers and members who are planning and navigating a path forward for their clubs need reliable data to make informed decisions. And while GGA Partners has provided reliable and actionable insights to clubs since its founding, we believe that club leaders need more than data. They need an ally to illuminate the issues. They covet a reliable voice to provide unbiased guidance based on evidence rather than anecdote.

The Change Study

That is why GGA initiated this research project to help us all understand the landscape for change in the golf, private club and leisure industries. We want to quantify the extent and character of the appetite for change and determine how barriers to change impede implementation. We want to identify any common characteristics present in effective change management, along with ascertaining the best methods for cementing innovations and measuring change over time.

The aim of this research is to provide club and business leaders with the insights and tools they need to successfully navigate the changes which we believe all clubs and organizations are sure to face in the months and years ahead.

Key Insights from the Preparedness Study

A summary of the key findings in this first report, of three, include:

Change Landscape

  • Half (50%) of clubs have witnessed significant or dramatic change between 2015 – 2020. The most common ‘types’ of change are structural, cultural and process related.
  • Technology and Communication have experienced the most significant change over the past five years. Nearly one-in-five clubs indicated ‘dramatic/radical’ change in Governance.

Change Preparedness in Clubs

  • One-in-three (34%) club leaders believe their club is very/extremely effective at handling change.  Clubs who recently went through dramatic change were more likely to consider ‘change management’ a top business priority.
  • Clubs that empower their General Manager to be the primary influencer of change (rather than Board/Committee) are generally more prepared, proactive and effective at handling change.
  • Just 13% of clubs consider their club’s change management capability as Leading.
  • Clubs are disinclined to be proactive in planning for change (hindered by fiscal and cultural conservatism), and most likely to be inspired to urgency by financial imperatives.

Overcoming Barriers to Change

  • Leveraging data to provide evidence, then communicating the need for change, are necessary methods to overcome barriers.
  • Financial metrics and member feedback (through a member survey) are the two key areas of data / intelligence that are relied upon to inform decision making.

Change Forecast

  • Clubs are not changing quickly enough in order to thrive in the future – 65% of club leaders indicate a need for ‘significant’ or ‘dramatic/radical’ change over the next five-years.
  • The top areas of change expected over the next five years are culture and financial. 85% of respondents believe they will require at least ‘moderate’ change to their facility/amenity profile.

Coping with the COVID-19 Crisis

  • Clubs with a greater reliance on data/intelligence to inform their decision-making indicate a stronger preparedness in dealing with the COVID-19 crisis.
  • The expected impact of the crisis on clubs will be dominated by: (1) Strain on financial capabilities and membership levels causing deferment of capital investment; (2) Cash flow management and restructuring of the cost model, balance sheet and an ‘emergency reserve’; and (3) Reduction of staff and a leaner operation to focus on ‘essential’ services.

Subscribe to access the full Change Study Preparedness report.

The Dreaded C-Word

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Let’s face it: soliciting independent, expert advice can sometimes be felt as an admission of inadequacy. However, the power of a third-party evaluation is something that can benefit almost any business – when selected carefully.

GGA’s EMEA Partner Rob Hill looks at the challenges and the benefits of employing an external consultant, how to select the right one, and what value a club should expect to gain from the relationship.

For many of us there’s an inherent discomfort in asking for help or support. It can often feel like an admission of being incapable of fulfilling particular aspects of your role.

But the truth is, an external vantage point can deliver an alternative assessment and different solutions to a club’s challenges – something that can be very difficult to accomplish from within.

If it’s a choice between sitting in silence (while your business plateaus) or seeking help, the latter is the only option.

A fresh perspective

Enter the consultant. The individual who is touted to have the answers to your questions, the vision you need to realize your club’s long-term sustainable future, the source of support and guidance you have been craving.

While this should be the function of the consultant, the delivery often falls short. And this is why distrust of consultants is not uncommon.

For some club leaders or board members this distrust is only a perception, for others it stems from direct experience of having achieved disappointing results with the support of consultants in the past.

Whatever the reason, skepticism looms large.

Demystifying the truth

So how do you go about finding the right consultant? How do you peel back the image to reveal their genuine credentials and potential fit to work with you?

Their previous work is a good place to start.

Ask for a broad assortment of references, testimonials and examples of work previously executed at other clubs, preferably those of a similar profile and standing. This will help you to establish a clear picture of whether they could be a valuable source of guidance.

Supplement this with online research. Websites, LinkedIn, social media and web searches are all effective channels to help you learn more about your prospective partner and ensure you have carried out your due diligence before entering into an agreement.

Reminding yourself why

Now that you have assessed a number of candidates, it can be useful to take a step back and remind yourself of the reasons behind seeking help and what additional value you are hoping a consultant can bring to your club.

While each club has its own unique set of challenges, the following is a broad set of attributes a prospective consultant should bring to the table:

  • Knowledge of a wealth of best practices and tactical advantages that can benefit club leaders (who typically have limited exposure to current trends in club strategy, leadership and operations).
  • An impartial perspective and the ability to generate new ideas you may not have already considered for your club.
  • The ability to translate often complex problems and proposed solutions in clear-cut, actionable detail.

Making the first move

Once all parties agree and the decision to employ a consultant is made, club leaders should begin by producing a clearly stated brief for what is needed and what the club is looking to achieve.

Typically, it will be up to the club manager to connect with and fully inform the candidates of the circumstances as well as the needs and expectations of the club. This will allow the consultants to develop an appropriate, tailored and effective proposal from which you can select the best candidate.

Extracting value

The key role of a consultant is to help you achieve those results that you are less likely to accomplish without the outside help, and these should be clearly laid out as the foundation and benchmark of the relationship from the outset.

What other ways should club leaders generally benefit from the relationship?

  • Provision of simple, practical guidance often derived from complex information and detail. Theory is inadequate to a club leader’s needs.
  • A clear roadmap indicating how long the consultant will need to be involved, a definition of the right goals and milestones for progress, and an outline of the specific results that will equate to a successful project outcome.
  • The ability to lean on an independent and objective source of guidance to protect the best business interests of the club.

So, while turning to an outsider can present an internal challenge, and must always be undertaken with a careful and strategic approach. Working with the right strategy consultant can pave a path for growth and success for your club that you might otherwise not achieve without that clear, focused outside perspective.

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.

Why Business Planning is the No. 1 Trend Facing Private Clubs

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Business Planning is the number one trend in the private club sphere for 2019, with club managers citing it as having the highest impact on club operations in today’s market.
GGA Partner, Rob Hill, looks at why this was…

Private club managers are working to meet demands for a better plan.

This was the clear finding of a recent survey of managers recently conducted across North America, with valuable contributions from several leading European clubs.

While many may see this as nothing new, the survey did reveal a number of interesting reasons behind this trend, with changing markets and changing member expectations driving the need for a more forward-thinking approach among club leaders.

A wave of change

Europe and North America both face a challenging macro-environment in 2019, with Morgan Stanley Research predicting a growth drop of around 0.6% for the United States, and 0.3% in the Eurozone*. With uncertainty fueling a lack of investor and consumer confidence, both are making more careful, considered and longer-term choices.

Alongside this uncertainty in the markets, the needs, wants and demands of club members are also evolving rapidly, creating a shifting landscape in which it is no surprise that business planning has surfaced as the most impactful trend among private club managers.

Trends within trends

Of course, the notion of business planning itself is nothing new. The need to produce and update a plan with board members at regular intervals is an ever-present duty for club leaders.

That said, a closer analysis of manager’s survey responses reveals interesting trends within this process that help explain why it is only growing in importance:

Wanting more – with lower levels of consumer confidence and greater scrutiny of expenses, members are understandably looking for greater value where they do choose to spend. As one manager put it, “Members want much more nowadays – so we need to provide more services, and plan for what they are and what members need.”

Typically, this means expanding amenities and services, as well as creating greater differentiation from other competing leisure pursuits – many of which do not require the same level of time and financial commitment, making them easier to justify.

Experiences – the advent and increasing popularity of investing in experiences over products is well-documented, and is now permeating through to clubs.

Survey responses indicated that clubs are becoming more mindful of this trend, with one respondent stating the need to “develop creative solutions and unique experiences which members will value.”

While clubs are coming to understand the need to craft and deliver exceptional experiences for their members, these experiences need to be carefully informed, appropriately financed and properly planned to ensure you fulfill this ever-growing demand among the membership.

Rising costs – increased member demands for new services and amenities are contributing to rising operations costs across much of the industry. In this landscape, business planning will play a pivotal role in ensuring financial stability, mitigating the impact of increased competition, and securing the longevity of the club – both as a business and as a relevant destination to existing and prospective members.

Where to start

As important as it is to know how to start a plan, it’s just as critical to know who is responsible for it. Managers involved in the survey spoke of the need to ‘free up’ the board to think more in a strategic context, rather than just an operational one. This can empower the board to inform a far-reaching, evidence-backed vision and plan for the club which all stakeholders can unite behind.

Club managers can then operate with the freedom to develop greater agility in making real-time decisions, to source the right information to support them, and to implement process management and ‘total work’ systems that will see the plans through.

Attention to detail

In expanding their amenities and services, many clubs are evolving from small businesses into larger, multifaceted entities which require increasingly specific, detailed, and timely plans of action. A combination of economic interests, resource limitations, and evaluations of financial viability are compelling clubs to think longer-term and to plan more diligently.

In a world that continues to change at tremendous pace, it is easy for business leaders to feel out of control. And this gets to the heart of why, we believe, business planning emerged in this survey as the trend with the highest impact on clubs today.

However, by arming yourself with the best tools at your disposal, tools that will enable you to take swift, measured, evidence-backed action, you will be well-equipped to face the challenges of both the present and of the future.

*Morgan Stanley Research “2019 Global Macro Outlook: Emerging Markets Retake the Lead” (Nov. 25, 2018)

This article was authored by GGA Partner Rob Hill. 

GGA Education Events Isolate Themes & Challenges Facing Club Leaders

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Golf club executives have come together on both sides of the Atlantic as GGA continues its program of insight-led educational Symposiums, that deliver insights, research and current trends influencing golf club business success.

Against the backdrop of Loch Lomond Golf Club in Scotland and Scarboro Golf & Country Club in Canada, senior figures in the club industry discussed the challenges, issues and successes of the past year and forecasted opportunities and possible difficulties for the next 12 months.

Managing Partner of GGA’s EMEA Practice, Rob Hill, who directed the European Symposium in Scotland, said: “Our Symposiums foster a culture of knowledge sharing and collaboration among club leaders, many of whom are tackling the same challenges and are eager to learn from each other’s successes. This, backed by GGA’s key findings and research, provides a foundation of confidence and focus for the year ahead.”

The Scotland and Canada Symposiums touched on a vast array of topics ranging from far-reaching global trends to granular, market-specific issues managers are typically experiencing, including strategic thinking, business intelligence, member satisfaction, capital expenditures, membership growth, governance and manager-led panel discussion.

Key Takeaways:

The Symposiums isolated a number of key themes and challenges club managers are set to face in the year ahead:

  • Strategic thinking is a challenge everywhere, particularly among club Boards. Challenges in defining strategy, remaining strategic at the Board level, and qualifying the elements of a strategic plan are widespread.
  • Business intelligence resources are in high demand. Many clubs indicated that they do not have all the data they need to make strategic assessments and key business decisions, particularly as they relate to local-market understanding, member satisfaction, club utilization habits, and evaluating club finances.
  • Member Satisfaction is paramount. Club managers believe that understanding members’ satisfaction, current habits, and future preferences is essential to a happy club environment. Empirically and anecdotally, there was strong correlation between overall member satisfaction and evaluations of a club’s social atmosphere, food and beverage operation, and clubhouse quality/condition.
  • Millennials and Generation X are top of mind. While tactics for recruitment and sentiments for the viability of these audiences varied significantly among regions and participating managers, it is evident that understanding the future generation of club members is a hot topic for club managers and a concern for some.
  • Governance is both a source of strength and adversity. Clubs are constantly facing challenges to govern effectively and implement governing infrastructure which supports the organization’s strategic vision. At clubs where governance is characterized by strategic thinking, written policy, and efficient, purposeful deliberation, success often follows.
  • Clubs are considering the following key initiatives for 2018:
    • Strategic Plan implementation: implementing/executing golf course masterplans, facilities masterplans, determining club brands, or evaluating club relevance to current/future members.
    • Governance reviews: reviewing governance practices, ensuring governance models are more ‘business’ appropriate, implementing Board Policy Manuals, and operating with greater transparency and more communication.
    • Membership changes: evaluating membership categories, measuring member utilization, focusing on maintaining existing members, and assessing approaches to attract Millennials/Generation X.
    • Financial monitoring: increasing the measurement of goals and financial performance through business intelligence/satisfaction surveys/employee surveys, assessing costs and benefits of process improvements through technology/robotics, and monitoring labor costs.
    • Environmental assessments: gauging the cost and potential impacts of processes focused on sustainability, ecology, and environmental stewardship.
    • Capital replenishment: conducting capital reserve studies, building capital reserves, exploring new methods of capital funding, gaining member support for CapEx through digital communications (i.e. video information rather than Town Hall meetings; estimating vote projections through online surveys; electronic voting for easier capture and analysis), and improving the monitoring capital maintenance requirements.

Rob added: “While these learnings represent only macro-level, shared sentiments among participating European and North American club managers, they point toward an auspicious outlook for the 2018 golf season, one defined by a focus on data-driven decision-making and informed strategy.”

Symposiums provide an opportunity to connect with club managers and to share the latest and fullest extent of GGA’s wealth of industry knowledge observed through client assignments and extensive market analysis. Partner Henry DeLozier, said: “At GGA we believe that one must share knowledge so that all may benefit. None of us owns knowledge.”

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