Tag: security

Review of Hurdzan’s Golf and Law

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Michael J. Hurdzan, Golf and Law.  Golf Course Safety, Security and Risk Management.  Edited by Ron Whitten.  Hurdzan Golf Publications, Columbus, Ohio.  Hardcover, May 2018, available on Amazon, $65.00. Reviewed by John Strawn, Director, GGA Partners

Michael Hurdzan has designed some of the world’s best golf courses, among them Erin Hills, the US Open venue in Wisconsin, and two of Canada’s most acclaimed courses, The Devil’s Paintbrush and The Devil’s Pulpit.   His impressive portfolio of course designs nestles among a broader range of accomplishments.  Hurdzan has a PhD in environmental plant physiology; following active duty in the US Army, he served in a special forces reserve unit for thirty years, retiring as a Colonel.  Now a Fellow in the American Society of Golf Course Architects, he was ASGCA president in 1984-85.   In partnership with his son, Chris Hurdzan, he leads restorations and renovations of classic courses, such as The Ottawa Hunt and Golf Club, Scioto Country Club in his native Columbus, Ohio, and Vermont’s Burlington Country Club.

Hurdzan is outspoken advocate for sustainable golf development.  He’s delivered hundreds of speeches on best practices in golf operations, highlighting the impact course design has on maintenance.  He’s one of the world’s leading authorities on golf’s environmental impacts.  He’s written a series of books, including a comprehensive treatise entitled Golf Course Architecture, familiarly known as “the modern bible of golf course design.”

Now, with his seventh book, Hurdzan has turned his attention to the intersection of golf and the law, striding into a contentious arena where few non-lawyers have dared to tread.  “I have been shocked,” Hurdzan writes in the introduction to Golf and Law, “that the golf industry, in general, has been so slow or inactive in trying to educate golfers and course operators to make golf and golf courses less hazardous.”

Though not a lawyer, Hurdzan has testified in numerous lawsuits, acquiring knowledge of golf’s legal quandaries firsthand, often sitting in the hot seat as an expert witness subject to cross examination.  He’s testified on behalf of both defendants and plaintiffs.  Golf and Law examines some of those cases, drawing valuable lessons for course managers, superintendents, and private club boards on how to assess and ameliorate risk.

Golf and Law was edited by Ron Whitten, a writer and former prosecutor who abandoned the courtroom years ago to take on the role of golf course architectural editor at Golf Digest, where he established himself as an authoritative voice on design.  Whitten also collaborated with Hurdzan on the early stages of the design of Erin Hills.

But it’s Hurdzan’s voice we hear on the pages of Golf and Law, a clarion call reflecting the authority and presence that’s given his courthouse testimony such persuasive authenticity.  When you’ve learned to give orders that may have deadly consequences, you don’t take risk lightly.

Hurdzan’s book advises course managers and club members to forestall risk by undertaking a prudent, ongoing and realistic assessments of any potential hazards they can identify—and we’re not talking about bunkers here, but rather lake edges, aging trees, blind shots and steep slopes.  He makes a case for modest interventions, above all the use of simple warning signs, but makes it clear that the strongest protection against risk lies in good planning and design.

The number of pages Hurdzan devotes to golf car issues—and he prefers “car” to “cart” because the former implies greater operational risk, and the whole point of Golf and Law is to provide guidance on managing risk on golf courses—may not be surprising, given that more than 15,000 golf car accidents are reported every year.  Although he doesn’t state what proportion of golf-related lawsuits involve cars, from the cases he presents the impression is that cars are golf’s greatest danger.

As in his previous work, Hurdzan’s goal in writing Golf and Law is to make the golf industry better–a safer place for golfers and staff alike, where everyone is alert to the risks inherent in balls traveling at skull-cracking speeds and cars are driven with the risks of operating them clearly in mind.   This book belongs on every prudent club manager and superintendent’s shelf.

Using Technology to Your Operational Advantage

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In what ways are clubs realizing operational gains through new technology solutions? GGA’s Martin Tzankov outlines the solutions helping clubs to reduce costs and enhance the playing experience.

Golf and innovation do not always go hand in hand. Attempts to bolt new age technology into a traditional game and well-established club structures have often produced mixed results.

However, this doesn’t prevent club leaders constantly being inundated with new platforms, systems and applications, each with the promise of revolutionizing club operations or the member experience.

To help bring a meaningful commercial focus to this conversation, the following are some new technologies that are taking seed and proving their worth in providing actionable business intelligence, operational gains, and cost savings.

Keeping members moving

As much as we want to allow members to move around the course at their own pace, maximizing their enjoyment and social opportunity, there will often be certain individuals who create discontent through slow play.

While you may, at least anecdotally, know who these individuals are, there is often an absence of cold, hard proof.

This is where GPS-technology comes in. It’s now possible to track individual member movements around the golf course and monitor how long it takes them to play an average round. Armed with this intelligence, club leaders can address this issue and make significant inroads to solving problems around pace of play.

Clearly, there’s a balance and sensitivity to be struck when tackling this topic, and individual circumstances and other variables come into play. For this reason, you may wish to only address individuals who are repeat offenders at peak times of play – in other words, those who impede the experience for other members and guests. In any case, the data you obtain from the GPS-technology will play a fundamental role in overcoming this all too common problem.

Cutting down maintenance

There’s another side to GPS-technology; one which has the potential to unlock major cost savings. By tracking the movements of players, you can quickly establish a picture of where the common ‘pinch points’ or bottle necks lie on the course, areas where players tend to hit and lose balls, or particular hazards they find difficult to overcome.

This data will allow you to work with your superintendent more closely and proactively; looking at the root causes of the problems players face and, indeed, don’t face when navigating the course.

While there are design and maintenance tactics which can help mitigate lengthy ball searches in notorious areas, the real cost savings come from the areas where players tend not to venture…

By determining where these areas lie on the golf course through player tracking data, you can take the decision to reduce inputs and turf management in the knowledge this will not impact the playing experience. The benefits of increased maintenance efficiency to the Club are extensive. Financially, the Club will realize substantial cost savings from a reduction in chemical inputs and by doing so improve the long-term ecosystem of the course environment. From a labor perspective, reducing the managed area of the golf course will free up the workforce to increase its focus on other areas of the course and development projects. Whatever timeline you attach to these changes, the tangible long-term benefits are there and waiting to be realized.

Real-time security and data

A wave of clubs can be found upping their game when it comes to security. We have witnessed clubs installing technology such as retina scanning, geofencing, or keycards and access fobs to know who is at the club and when.

While security is the fundamental motivation behind such a move, the data this presents to clubs can prove invaluable in learning more about member engagement. Yes, there is a time commitment involved in analyzing and extracting some real value from this information, but if it can help you learn more about how some members’ engagement has tailed off, or which facilities or events they are engaging with over others, you can develop tactics to re-engage these members and boost their satisfaction levels.

Take events as an example. You may have a successful, thriving events program but find that a combination of POS and member data reveals that these are only really popular among elder members, while younger members are largely absent. We already know that the injection of younger members into these events is viewed favorably by elder members, and increased socialization will encourage a greater sense of attachment to the Club. So, it makes sense to conduct analysis into younger members’ attitudes, wants and needs from an events program so you can build on its success and make it more inclusive too.

A final thought

When it comes to implementing new technology, my message is this: be open to change. Your club may have established processes or ways of doing things, and it can be uncomfortable when technology threatens to change those. This will result in some clubs shying away when, actually, those that prosper will be accepting of the fact that change is inevitable. Not only that, they will see the opportunity change can bring.

For advice on introducing new technology to your Club, connect with Martin Tzankov.

Change Shows No Sign of Slowing

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If your time to you is worth saving
Then you better start swimmin’ or you’ll sink like a stone
For the times they are a-changin’
– The Times They Are A Changin’, Bob Dylan

The songwriter, poet and social observer Bob Dylan warned us about change.  Back in 1964, he said it was a-coming.  Forty-five years later, we are reminded of his prescience.

In private clubs, change has arrived in full force and shows no signs of slowing.  As a new year reveals itself, private club leaders should be alert to change in five key areas affecting their operations.

1.  Economy – A surging economy has helped a number of clubs in North America add members in the last two years. But many experts are forecasting a softer economy in 2019.  According to the Conference Board’s November 2018 report, “Higher interest rates, and the intention of the Federal Reserve to keep raising them into 2019, will create a more challenging environment for business next year.”  That means membership recruitment and retention are still top priorities at most clubs.

Global Golf Advisors estimates that less than seven percent of the 4,400 private clubs in North America are full and working from a waiting list for admission.  Anticipating that the economy may soften, private club leaders must intensify their efforts to recruit new members while giving focused attention to retaining existing ones.

Often the solution is not a price change, but something more creative, such as ones that make the club more personal and relevant to today’s lifestyles.

What are the right moves for your club?  The answers start with knowing your members as well as your prospects and knowing what they value most in a club relationship.  If you don’t know how they define value, ask them.

2.  Delay no longer a strategy – In the heat of the recession, many businesses, including many private clubs, decided to forego capital improvements until times got better. Times got better, but many continued to delay investment.

Now many clubs are playing catch-up on deferred capital improvements. In the process, they’re discovering that new members are attracted to standards of quality that match their personal lifestyles.

That means that improvements to club facilities, programs and staff must reflect a long-term commitment to sustained quality.  Most members want their clubs to be better five years from now and club leaders are obliged to fulfill that expectation.

Club leaders do well to establish a broad standard of excellence for the club.  This is where clubs can truly be “unique,” as everyone like to profess.  The standard of excellence dictates the qualities of fit and finish for the facilities, the style and level of services and the types of recreational programs offered members.

3.  Brand takes on added significance – Private clubs are brands, and just as a particular soft drink, computer or automobile stands for something in consumers’ eyes, so does your club stand for something in the eyes of your members and prospects. Club leaders must develop an intentional branding strategy that sustains the promises on which the club has built its reputation, including course conditions, levels of service and culture.

 For brand planning in a private club, several keys apply:

  • Confirm the club’s potential tax-exempt status to ensure conformity with the U.S. Tax Code;
  • Develop and implement a proactive communications plan that reinforces primary brand pillars, and
  • Remember that the club’s brand is reflected in everything it does . . . and fails to do. Everything communicates.

When making any key decisions about the future of the club, make sure you’re staying true to your brand promise.

4.  Security and privacy concerns are increasing.  In a world rife with cyber threats, private clubs are highly vulnerable targets.  People of means gathered in one easy-to-access vault of names, addresses and possibly financial information constitute an attractive target for those ill-intentioned among us.

Members place their trust in their club to safeguard their privacy.  Break that bond and the consequences could be irreparable.  Club leaders must contract with companies expert in securing their club’s sizeable data storehouse and secure this information.  This threat will expand in 2019 at clubs that are unprepared

5.  Access and affordability of labor is changing clubs. Most clubs surveyed by GGA report increasing direct and indirect labor costs.  Many clubs are outsourcing work through contract-labor arrangements.  Some clubs are securing overseas workers for seasonal needs.  All clubs are evaluating steps to reduce the reliance on accessible labor for routine club services.

In some clubs, self-service is taking hold.  In progressive clubs, new solutions including F&B orders entered on tablets, are reducing head-count.  Some clubs are exploring making the golf halfway house and the tennis and pool snack shacks honor-system facilities, where losses are likely to be less than the labor costs to secure them.

On the flip side of Dylan’s ballad that promised change was a song titled “Honey, Just Allow Me One More Chance.”  A new year gives us revived opportunities – one more chance – to get ahead of change.  We better start swimmin’.

This piece was authored by GGA Partner Henry DeLozier for BoardRoom Magazine.

Budgeting 2019

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Budgeting for 2019 requires a broader-than-usual alertness to changing times and impacts on golf-oriented businesses. Newfound elasticity on revenue sources, such as dues and fees, will allow many to plan for revenue increases. That’s the good news. More sobering is the fact that most courses and clubs will strain to cover the rapidly accelerating costs of operations.

While it’s helpful to know that costs are rising, budget planners benefit even more from understanding the factors driving cost increases. Here are five cost areas where knowledge of underlying trends and timing will lead to accurate projections.

Labor

The U.S. Department of Labor’s Employment Cost Index notes that wages and salaries for U.S. businesses increased 2.9 percent for the 12-month period ending in June 2018, following a 2.4 percent increase in June 2017. The cost of benefits rose 2.8 percent for the 12-month period ending in June 2018, after increasing 2.2 percent in June 2017. Employer costs for health benefits increased 1.6 percent for the same 12-month period.

Insurance

The costs associated with insuring golf facilities are increasing. Willis Towers Watson’s insurance industry semi-annual report (2018 Insurance Marketplace Realities) projects increases in insured categories more vulnerable to natural catastrophe impacts.

  • Property: Previous-loss history more than doubles premiums in most markets. Clubs located in markets exposed to catastrophic claims will increase as much as three times those of non-exposed clubs, while those clubs with catastrophic experience with losses may see increases from 15 to 20 percent.
  • Casualty: WTW projections indicate that rates for casualty insurance will increase less than 4 percent.
  • Auto Liability: For clubs with automobile insurance premiums, rates are expected to rise from 5 to 9 percent. Ongoing market challenges exist in this space, and two years of steady price increases have not kept pace with loss trends and adverse developments. Rates are expected to rise more steeply.
  • Cyber: Golf clubs are vulnerable to cyber-risk. The WTW study notes a 15-fold increase in two years with claims near $5 billion. Organizations without claims can forecast increase of 5 percent or less.

Healthcare

“Over the past nine years, employee out-of-pocket spending for a family of four increased 69 percent in the form of higher co-pays and higher deductibles, along with 105 percent employee premium contribution growth,” Keith Lemer, CEO of WellNet Healthcare, said in an interview with CNBC earlier this year, noting that over the same period a year earlier employer premium contributions increased 62 percent.” Lemer added, “In 2008 more than 8 percent of a family’s income was spent on health care. In 2015 (last available data) it rose to 12 percent. This means people are making less money today as a direct result of the cost of health care.”

Food

The costs of food consumed at home diverged a few years ago from the costs of food served away from home – in restaurants and clubs. The U.S. Department of Agriculture predicted grocery store price increases from 1 to 2 percent. Food consumed away from home is expected to increase from 2 to 3 percent. For menu planning purposes, be aware that beef and veal are projected to rise 2 to 3 percent, egg prices will increase 4 to 5 percent, while cereal and bakery prices will go up 3 to 4 percent. The USDA expects prices for fats, fruits and vegetables to drop.

Fuel

Large consumers of fuel and oil by-products, including golf courses, will see some relief in fuel-related costs in 2019, according to an August 2018 J.P. Morgan forecast. “While geopolitical tensions and lingering risks of large supply disruptions remain an upside risk, we think that prices will be corrected downwards towards end of the year and remain capped in 2019,” J.P. Morgan analyst Abhishek Deshpande wrote in the note reported by CNBC. This is important for golf where oil prices and those of oil by-products, including fertilizer, have direct budgetary impacts. For budgeting purposes, managers should watch oil futures. One can expect higher gas prices about six weeks after an increase in oil futures.

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

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