Tag: SI

Why You Need More than One Member Survey

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Member satisfaction surveys are a rich source of data and intelligence for measuring year-on-year club performance, but fall short of accounting for the changing face of members’ needs and expectations. GGA’s Michael Gregory explains the need for a different type of survey, and the questions you be should be posing to your members.

Why is it that member satisfaction surveys are not an effective mechanism to capture everything that members need, want and expect?

By definition, the primary objective of a member satisfaction survey is exactly that: to measure member satisfaction.

Straying from an accepted format or structure without providing the necessary context may lead to a drop off in engagement levels. So, while you can potentially look to feed in additional questions to source particular information or data from your members, the key is to be relevant.

The advantage of a survey for any given situation is the club’s ability to gauge members’ feelings or attitudes on that specific topic or project. If the board is considering a capital project – a new clubhouse for instance – a dedicated survey would represent an effective way of obtaining some invaluable insights, as well as learning whether members could tolerate increases to dues in order to accommodate this, and support for other methods of funding.

Can members get ‘survey fatigue’? If so, how can you avoid this situation to ensure you capture reliable, insightful data?

Undoubtedly. Times have changed and we have witnessed first-hand how the willingness of members to devote significant time to surveys is decreasing.

Around 10 years ago, it was entirely possible to carry out a combined satisfaction and strategic survey of members which could take up to 45 minutes to complete. With changes to device use and attention span, new tactics have emerged to overcome the possibility of survey fatigue, including:

  • Different types of surveys – from shorter, pulse surveys to more immersive, philosophical, and strategic surveys. Providing each is structured to capture the interest and engagement of members, this will mitigate any possibility of an attention ‘drop off’.
  • Segmentation – not all surveys will require input from all members. So, providing you involve an appropriate cross section for a given survey, this will ensure you’re not asking too much of too many members all at once.
  • Accessibility – by making all options available to your members in terms of how they can complete a survey (cell phone, tablet device, desktop or hard copy), you allow them to make a choice in which way they find most comfortable, convenient and quick.

Finding the right survey approach demonstrates to your membership that their opinion matters, you are open to change, and that the club wishes to maximize its relevance to the majority of members. Crucially, it eliminates the possibility of a reactive ‘culture creep’ where decisions are made on the basis of vocal minority opinion rather than how they should be made – through data-driven decision making.

When’s the optimum time to be running member survey(s)?

This is really determined by the need and seasonality for each club. Some surveys will be linked to time-defined events (such as those focused towards capital projects), so would need to happen within a given window.

If a club is looking at a strategic or attitudinal survey then the timing is somewhat less critical – though the off-season can be a good time to survey members on these topics.

Things are more certain when it comes to surveying members on how satisfied they are. Our research and data in this area points to the period following the peak season as the optimum time to question members about their year-on-year sentiments towards the club, and there are some key reasons for this:

  • Members have just experienced the club in its best light – so they are more likely to be engaged, positive, but also practical and pragmatic in their assessment and recommendations.
  • A maximum number of members are utilizing the club – with the seasonal nature of a number of clubs, members can often go into hibernation during the off-season. So, surveying these individuals at a time when the club is far from their mind and everyday life is unlikely to provide qualitative data and insights. Conversely, questioning members when the club is a highly relevant part of their day-to-day life will ensure everyone’s voice is heard.

How do you interpret the findings and how (much) should they help to inform wider strategic club intentions?

Asking the right questions is only part of the process. Much of my work involves spending a great deal of time interpreting results by looking at the key drivers and mapping these against various demographic filters; this reveals differences of opinion between various groups such as men and women, newer and longer-tenured members, younger and more senior members, and various other categories. All helping to fuel the right future strategy for the club.

However, this process can be more complex than what it seems.

Take, for example, a case where the food and beverage operation is the lowest rated component of the services, amenities and activities available to members. The natural inclination would be to hone in on this area as one requiring action and improvement. But this is where key drivers come in. What really drives the satisfaction of members? Which areas are they most sensitive to? And therefore, where should your focus lie (not always the lowest-ranked component)?

Once these key drivers are determined they can prompt specific strategic action, or, in cases where more information is needed, spin off surveys. Understanding the key factors that are driving member satisfaction helps to interpret survey results in an aggregate context, one in which outputs on specific questions are considered relative to others in order to help the club prioritize areas of focus and support justifications for doing so.

What have you observed from clubs who do/don’t take a keen interest in finding out more about the needs and wants of their members?

Making operational and strategic decisions based on perception or the opinions of a vocal minority is one of the greatest risks a club can face.

The club that makes it a priority to obtain feedback from its members has a solid understanding of the factors that caused its members to join, an annual measure of current performance relative to expectations, understands the key drivers of satisfaction, and has a clear notion of its members’ hopes and goals for the club.

More than that, by taking an active interest in the opinions of its members, the club takes them on a journey and demonstrates trust, transparency, and the benefits of data driven decision-making along the way.

In cases where the vocal minority come forward with points of dissatisfaction, the robust data at the hands of managers creates a credible sense of authority when engaging in dialogue.

Any final thoughts to add?

In any member survey, communication and transparency are key. Start your process with focus groups – this helps generate buy-in and trust in the process, and also shows you are (literally) willing to listen to the opinions of members.

Once you have embarked on the process, keep members informed about the next stages and the reasons behind conducting a survey. It’s highly likely they will speak with one another about the process and the details of any survey, so regular club communication will ensure there’s no room for misinterpretation or myths arising.

The final, and arguably the most important consideration, is confidentiality. Members should embark on a survey in the knowledge that their individual responses will be securely held by an independent third party. This affords them the opportunity to respond candidly and feel comfortable enough to air out dissenting opinions, frustrations, and constructive criticisms that may bring to light or reinforce issues which otherwise may not be shared.

Crucially, this arms club leaders with the authentic, informative feedback they need to be effective strategists.

This article was authored by GGA Senior Manager and Market Intelligence expert Michael Gregory.

GGA and the CSCM Launch First of Two Research Initiatives

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The Canadian Society of Club Managers (CSCM) and GGA have formed a strategic partnership to produce research and insight for the benefit of CSCM members and the club industry at large.

The first joint research initiative launched December 6, 2018 with a comprehensive survey of CSCM members that focuses on attitudes, trends and best practices from club leaders. The purpose of this survey is to gain insights on the Canadian club industry and gauge the opinions of Club leaders on the industry outlook.

The results of the survey will be shared for the benefit of all participants and will form the basis for ongoing industry research that will increase the reach and impact of the CSCM for its members and Canadian club managers.

The December 2018 survey is the first of two club industry research initiatives CSCM and GGA will undertake each year. Following the completion of this survey, the second initiative will target business media through lifestyle research initiatives that generate interest beyond the club industry.

Click here to learn more about Canadian club industry research, trends and best practices.

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.

Key Benchmarking Standards in the Golf Industry

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How to Leverage the Information to Improve Operations

Benchmarking standards are commonplace in most industries. These standards are set and updated based on defined and evolving business models and shared information. The core objectives for creating and using benchmark standards are performance measurement and improvement. The golf industry has lagged other industries in the widespread adoption and use of benchmark standards.

The good news is that change has been brewing for years and is picking up speed. The NGCOA Canada is helping to lead the charge through its various benchmarking and performance tracking initiatives, including the Revenue Tracker and Rounds Played & Weather Reports, which provide comparisons of an individual course’s results to their competitive set, provincial and national averages along with Performance Intelligence which provides course specific benchmarks and feedback.

With the various categories of courses, and corresponding operating models (private, semi-private, resort, public, and municipal courses), executing benchmarking and performance tracking initiatives is no small feat.

In order to effectively use benchmarks, there needs to be standardization. This typically requires the use of Key Performance Indicators (“KPIs”) that enable meaningful comparison from business to business and across markets. The KPIs for each type of course are different.

As an owner or operator, this means you need to be recording, tracking and updating KPIs in a manner consistent with the industry (category) standard as a baseline starting point. Therein lies the greatest challenge the golf industry is set to overcome.

In recent years, it has become evident that benchmarks and KPIs have significantly helped golf course owners and operators measure and modify their operations to improve financial performance. Financial performance is not just net income, it includes managing the balance sheet (working capital and debt) and ensuring the maintenance of physical assets.

PUBLIC, SEMI-PRIVATE AND RESORT FACILITIES

Public and semi-private golf course operations have a singular focus – maximizing the yield on a finite inventory of available tee times. As the market for golf continues to evolve, a focus on maximizing gross margin from non-golf related revenues will also become more important.

Some of the most important benchmarking standards for public and semi-private courses relate to rounds of golf, revenues per round, and labour and other expense ratios.

The following are a few examples of important KPIs by category:

Rounds and Revenue

Naturally, a key measure of performance is rounds played. Beyond revenue, rounds played, and average revenue per round, critical indicators required to understand performance include:

  1. Tee time utilization: rounds played compared to rounds available; and,
  2. Rounds played yield variance: how much does each round yield, on average, compared to the highest yielding round.

These indicators allow operators to quickly understand if their pricing model is effective, or if it needs to be adjusted to drive utilization and yield simultaneously higher. While each course and market are different, if your tee time utilization is below 40% and your average revenue per round yield is below 70% of your highest yielding round, significant adjustments should be considered to improve performance. A healthy course will typically run at a utilization rate of 50% to 65% of weather adjusted available tee times and average revenue per round as a percentage of peak revenue per round between 70% and 80%.

Other helpful metrics include utilization and yield statistics measured on a per round basis for other ancillary revenue sources such as carts, driving range, food and beverage, and merchandise. Resort properties will also measure green fee revenue per room, after adjusting for occupancy sales; and total rounds played by guests of the resort versus non-guest play.

Cost of Sales

The cost of sales metrics are generally more straightforward and easy to come by, with costs more consistently recorded and tracked. Generally, food and beverage cost of sales as a percentage of food and beverage revenue average between 26% and 36%, while merchandise cost of sales as a percentage of merchandise revenue average between 65% and 75%, depending on the mix of hard and soft goods sold.

Labour and Other Expenses

Labour expenses are the largest category of expenses for golf courses, generally ranging from 52% to 58% of total expenses.

Expense metrics which go beyond simple dollars and cents, are generally harder to come by due to the wide variety of operating models, departmental structures, and local market conditions for labour and other products and services.

That said, typical labour metrics include the following:

  1. Labour related costs as a percentage of revenues and costs. For instance, food and beverage labour expense as a percentage of food and beverage revenue generally averages between 38% and 50%.
  2. Full-time equivalents by department. According to the most recent NGCOA Canada Compensation & Benefits Report, the average full-time equivalent head count at public and semi-private facilities in Canada is 18.2.
  3. Actual key employee payroll and benefit costs. Public and semi-private facilities employ an average of 52 employees, with significant variances in the mix of staff (permanent, seasonal, full-time, and part-time) by region and type of facility – you are encouraged to consult the report for a detailed breakdown of compensation by key position.

Other operating expenses are typically evaluated against a unit of measure. For example, greens expense per maintainable acre and clubhouse expense per square foot.

Advertising expense is measured as a percentage of total revenue, as are other variable expenses such as bank charges and credit card fees. From a capital expenditure standpoint, public and semi-private golf courses should on average spend between 3% and 5% of total revenue on maintaining existing capital items.

PRIVATE MEMBER CLUBS

Private clubs sell and market more than just golf, they promote a lifestyle and social hub. Instinctively, not-for-profit private clubs focus on break-even operations, member satisfaction and maintaining assets.

In order for a private club to be successful, all aspects of the operation must meet members’ expectations, and as a result, measuring utilization and service levels of all club facilities is quite important. In addition, most people do not want to belong to a club that appears run down; as such, an important KPI is expected capital maintenance costs and the funding of those costs through entrance and capital maintenance fees. Below are a few examples of private club KPIs:

Revenue

The key focus from a revenue perspective is annual dues, maintaining a stable membership count, guest fees, power cart revenue, and food and beverage revenue. An example of important revenue KPIs for a private club are shown below:

  1. Full Member Equivalent: total annual dues divided by a full member’s annual due.
  2. Satisfaction, participation and utilization: critical statistics to measure and benchmark.
  3. Natural attrition rate from existing membership: typically average between 5% and 8% of total memberships.
  4. Membership Conversion Rate from Inquiries: generally average between 8% and 12% of qualified inquiries.
  5. Revenue per membership by department, source and membership type.
  6. Average guest rate (achieved) compared to the peak guest rate, typically averages between 65% and 75%.
  7. Average number of guest rounds per membership, typically ranges from 5 to 12.
  8. Average tournament patron rates, typically ranging from 80% to 90% of the peak guest rate.
  9. Rounds per membership, typically ranges from 35 to 48.
  10. Utilization of tee times by membership category.
  11. Golf Cart Utilization: golf cart usage as a percentage of total rounds, which typically ranges from 35% to 50% depending on walkability of the golf course.

Cost of Sales

Similar to public golf courses, cost of sales as a percentage of revenues are some of the more readily available metrics. Typically, food and beverage cost of sales run higher for private clubs, between 35% and 42% of food and beverage revenue, while merchandise cost of sales typically average 75% of merchandise revenue.

Labour and Other Expenses

From an expense perspective, most private clubs have excellent controls in place to keep expenses in line with the approved budget.

  1. Labour expense ratios as a percentage of total expenses are usually slightly higher at private clubs ranging from 55% to 62%.
  2. Full-time equivalents and headcounts are also typically higher at private clubs, averaging 48.3 FTEs and 101.9 employees.

All other KPIs related to expenses are generally based on a unit of measure of as a percentage of revenue. For most operations, controlling expenses is important; however, for private clubs this may not be as important as meeting member satisfaction. Defining what is important needs to be a ‘first step’ for each operator.

HOW DO YOU LEVERAGE KPIs?

A requirement for effectively using benchmark standards to improve your specific circumstances is the application of experience to compare and contrast your results with that of the standard, investigate discrepancies and develop focused improvement plans.

Most owners and operators want to be as efficient as possible without lowering their expected standard of excellence. The use of benchmarks allows operators to both measure performance and adjust operating procedures to improve performance and meet the goals of the club.

Although benchmarks are typically used to measure historical performance, they can be used to make alterations on a timely basis if reviewed appropriately and to provide direction for adjustments moving forward.

For example, certain utilization KPIs can be evaluated daily, weekly or monthly. For a public course operator, it is essential that their information system be ‘real time’, so KPIs can be calculated, and if needed, communication to the general public adjusted in a timely manner (yield management). The use of KPIs and benchmarks need to be part of the toolkit for management and the owner.

Furthermore, more sophisticated operators have set up specific dashboards with differing KPIs for different levels of management and/or ownership. The dashboards are produced on a periodic basis, either daily, weekly or monthly depending on the audience.

This information is then used to adjust operations on a timely basis or adjust marketing and communications to patrons in order to enhance utilization of the facility.

From a management perspective, KPIs and utilization statistics can be used to align labour costs with activity. In addition, some operators use KPIs to evaluate staff performance and determine bonus calculations.

The most important are KPIs that allow for timely revenue enhancement and service improvements that improve patron/member enjoyment. If you are not using KPIs, you are at a disadvantage and are missing a key tool in your management toolbelt.

STAY COMPETITIVE

In summary, benchmarking standards help each operator remain competitive within their market segment. KPIs can also become a motivating influence for staff and management. Simply tracking your results compared to budget is not good enough. Operators need more dynamic information which allow for the development and implementation of timely tactical solutions.

Industry benchmarks are key to a successful operation – without them your operation is at risk.

This article was penned by Derek Johnston for NGCOA Golf Business Canada. 

GGA and the CSCM Partner to Enhance Research and Impact

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Global Golf Advisors (GGA) and the Canadian Society of Club Managers Partner to Enhance Research and Impact
GGA recognized as Platinum Corporate Partner of the CSCM

TORONTO, Ontario – October 15, 2018

Global Golf Advisors (GGA) and the Canadian Society of Club Managers (CSCM) are pleased to announce the formation of a strategic partnership to produce research and insights for the benefit of the CSCM members and the club industry at large. The CSCM Corporate Partner program recognizes industry partners that share the values of the CSCM and offer members support as leaders in the club management profession in Canada.

The CSCM and GGA have enjoyed a history of collaborative research and investigative solutions to many of the club industry’s toughest problems. The evolution of this relationship into a formal partnership furthers the mission and core objectives of the Society’s strategic plan and positions GGA to more directly support the CSCM through funding, education, and research for its members. Each year, GGA and the CSCM will collaborate on valuable industry research as well a lifestyle research paper.

“Achieving the CSCM’s strategic plan, ‘Vision 2020 – A Clear Focus For An Even Stronger Future’, is one of the most important mandates of our National Board,” explained Trevor Noonan CCM, CCE, CSCM president. “For many years CSCM and GGA have maintained a longstanding and valued relationship. By formalizing our partnership, we bring the plan’s ‘Research & Impact’ pillar to life.”

The CSCM’s vision is to create great clubs through excellence in professional club management and its mission is to promote and develop the profession of club management. The CSCM offers a variety of programs and services in response to member needs and expectations including the certification program leading to the Certified Club Manager (CCM) designation, career opportunities, and a networking forum for executives and managers involved in club management.

GGA is committed to club management and helping facilitate key elements of the CSCM’s provision for providing research, resources, and education to its members. “Club managers are charged with immense responsibility and deserve all we can do to help.” said GGA partner Derek Johnston. “We are proud to lend our support and are eager to work collaboratively with the CSCM to develop beneficial research and insights drawn from GGA’s core competencies in strategy and operations consulting, business intelligence and analytics. ”

“The creation of this valuable and timely industry research continues to position the CSCM as the industry leader it is, providing benefit to the CSCM members and the clubs they lead,” declared Suzanne Godbehere, CSCM chief executive officer. “We are very much looking forward to delivering this joint research.”

For more details about the CSCM and partnership, click here.

About The Canadian Society of Club Managers
Established in 1957, CSCM is the national professional society representing the club management profession in Canada. Of our approximately 600 members, over 70% are from golf clubs, and the remainder from a variety of city, recreation, fitness, curling and other types of clubs.

The Society’s members hold position titles that include General Manager, Chief Executive Officer, Chief Operating Officer as well as Assistant Manager, Clubhouse Manager, Controller and Food and Beverage Manager.

About GGA
Global Golf Advisors is a highly specialized consulting firm dedicated to the club and golf industries. GGA serves a global roster of clients from its four offices in Toronto, Phoenix, Dublin and Sydney. The firm was founded in 1992 as a specialty consulting practice within KPMG Canada, KPMG’s Golf Industry Practice. Since inception, the firm has provided industry-leading advisory services to over 3,000 clients worldwide.

Harnessing the Power of Strategic Intelligence

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When a club undergoes a strategic planning event, they do so by assessing a number of key data sets: member preferences, club operations, finances and market forces.  All of these come together to help inform strategy and the action plan moving forward.

The fundamental challenge I see clubs struggle with all too often is keeping the information that informed their strategy up to date.

The intention is right, but the execution falls short.  Let me tell you why.

Most clubs are stretched for resources.  This typically necessitates a focus on immediate challenges, which tend to be operationally driven with solutions that are tactical in nature.  It is not surprising that most business intelligence utilized by clubs focuses on revenues, expenses and certain utilization statistics.

The research and insight required to monitor and adjust strategy on an ongoing basis goes beyond revenues and expenses.  It must provide club leaders with a 360-degree view of all forces impacting their club: from member attitudes and preferences to finances, capital sources and uses, from competitors to the economy, from real estate to a wide assortment of market conditions, the list goes on.

There is a tendency to assume many of these things do not change quickly, certainly not as quickly as daily operations; however, changes do occur significantly from year to year.  For clubs today, sustained competitive advantage is critical.  An off year in membership recruitment can hurt the club.  A few off years over a five-year period will hurt the club and can be significant.

This is where strategic intelligence is so important.  One of the biggest obstacles clubs encounter in their quest for better and current strategy is the sourcing, analyzing and visualizing of important strategic intelligence.  An effective strategic intelligence process requires careful planning and resources, and this is the obstacle GGA’s Strategic Intelligence program has been designed to help club managers overcome.

The strategic jigsaw puzzle

The key to harnessing the power of strategic intelligence is this: piecing the right data together in a cohesive way and creating a culture of staying in tune with current trends.

This is something that clubs have, historically, struggled with. However, by enabling clubs to stay connected to all of the factors impacting their long-term success, this is an area GGA can really make a difference.

One thing is clear: clubs who actively engage with current strategic intelligence to inform their decision-making perform better in the short, medium and long-term.

 

To discover how to leverage Strategic Intelligence for your club,
connect with Derek Johnston

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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