Tag: standards

What Are You Doing to Develop Future Leaders?

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One of the most important responsibilities for managers is developing the next generation of leaders and preparing them for the professional challenges they will face. The most obvious way to develop leadership qualities is simply to pay your knowledge forward by identifying the most important lessons you’ve learned — often the hard way — and passing them on to your team.

That responsibility starts with acknowledging that agronomic knowledge is simply table stakes. Knowing how to grow turf and keep it healthy is expected of anyone in the superintendent role, and most up-and-coming turf managers come to the job well prepared. GCSAA educational programs and the generous teaching of consulting specialists and suppliers go a long way in helping to lay this foundation. Certainly, the college of hard knocks provides its lessons as well.

But what lessons will you teach your assistants and crew members? And how can you help prepare them for their next opportunity to move into more responsible positions? In addition to making yourself available as a mentor, you can also broaden your own knowledge by paying attention to what your most respected peers consider their priorities. Here are suggestions from two of the best in the business.

Bill Cygan is the exceptional young superintendent at Silver Spring Country Club in Ridgefield, Connecticut. After graduating from the University of Massachusetts-Amherst, Bill spent six years as an assistant at Innis Arden Golf Club in Greenwich and another six years caring for the West Course at Winged Foot.

Build strong relationships and communicate often.

“This is not easy and doesn’t happen overnight, but the stronger your relationships are at the club, the smoother the ride will be, especially during times of adversity,” Bill says. “Relationship building should include department managers — especially the golf pro, controller and general manager — as well as certain key members of the club, including the green chairman and treasurer, who can be important allies.”

Trust your teammates.

In addition to the administrative leaders with whom a successful superintendent works, Bill adds, “Be sure to build a strong team responsible for the daily golf course maintenance operations.” The strength of the team is your strength.

Carlos Arraya, the assistant general manager at Bellerive Country Club in St. Louis, began his career as a golf course superintendent and over two decades has grown into a key leadership position at one of America’s finest clubs, having hosted the 100th PGA Championship in 2019. Carlos teaches several key points of focus:

Lead the way.

“Understand your leadership style and voice,” he says, adding that managers who favorably influence the next generation of leaders practice mindfulness, leaving their ego at the shop door, putting the interests and needs of their crew ahead of their own and recognizing a job well done. Further, he recommends continue evolving as a leader to best handle the needs of a changing workforce.

Be present.

Some managers are overly focused on the next job, but Carlos counsels: “Focus on being great in your current role.” One can never know too much; by the same token, one can never know everything, so don’t pretend that you do.

Hone your own character.

Superintendents and managers of all descriptions work in the proverbial glass house. The key to being effective at each level is understanding that one is setting an example for others up and down the organizational chart. “Know the difference between an excuse and a reason,” he says. “And don’t fall into the trap of professional jealousy.”

Rely on science.

“(Superintendents) are trained in the scientific method. But sometimes we overreact and are too quick to make a decision,” he says. Club and course managers can pressure superintendents, especially when times are tough, to have immediate answers. “Be deliberate, rely on the science.”

Developing young people into experienced and highly effective crew members, ones who will one day lead their own operations, is one of the most important jobs of any superintendent. And only when you lose some of your best people, when they move on to the top job at another club or course, you will know that you’ve been successful.

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

What’s Next Rests in Your Hands

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Every superintendent’s hands tell a story. Tough as worn boot leather, marked with the scars of the trade, a superintendent’s hands are testament to long days and honest work that never seems to end. Their hands groom and maintain the course and grounds that are an owner’s most valuable asset while holding the employment and income stability for their crews.

By all accounts, a superintendent’s hands shape the future. That’s as true with the things that are visible — tee boxes, fairways and greens — as those that are not, namely the meticulous plans that support every aspect of an agronomic program. How do the best superintendents plan for the future? They start with three basics:

1. An overall plan for their work.

The overall plan for the care and upkeep of your course establishes the standards of excellence by which you should be measured. The agronomic plan describes your cultural practices for the basics and should include detailed descriptions of fertility, irrigation, labor, arboreal and the sub-plans that support each of those major pillars.

Plan so that you can make your agronomic plan an educational and informational guide that uses photographs and narrated video to keep your owner, board and greens committee well-informed. In addition to setting standards, your agronomic plan is a great opportunity for you to teach key stakeholders what they should expect of you and your team.

2. A comprehensive communications plan.

Once your agronomic plan — together with its supporting details and sub-plans — is established and approved, it’s time to implement your communications plan. Target all stakeholders — your team, the rest of the management staff and your golfers — to help everyone understand your plan of action. This is not a time to seek permission. This is the time to demonstrate your knowledge, experience and expertise.

Set a schedule for your messaging and meet it. Use multiple media to deliver the message — video, brief written descriptions and small-group field days, when you take members onto the course to demonstrate how your programs are being executed.

Some superintendents become victim to overpromising details and conditions that cannot be delivered. Be alert and carefully describe what you will accomplish. By the same token, do not understate the value of your efforts. This is no game for sandbaggers. Demonstrate your professionalism and capabilities with clear-cut descriptions of who you are, what your team goals are and how the goals will be successfully achieved. Show what features you will emphasize on the course and explain the benefits of each element of your strategy.

3. A self-improvement plan.

GCSAA provides countless opportunities for superintendents to stay current on science and technology and to learn about new trends. The most respected and rewarded superintendents also seek out opportunities — and a regimen — for self-improvement. Here are a handful of keys for improving your own capabilities:

  • Read more. Leaders in every field are readers who continually gather more information that bolsters insight and wisdom.
  • Get fit. The pressures that come with the job and the common inclination to treat oneself well when one feels overlooked or unappreciated combine to add weight, cholesterol and risk to your well-being. Get in shape and stay there.
  • Identify and address blind spots. What do you overlook or consider to be inconsequential? Which people or circumstances trigger frustrations during your day? The better you identify threats to your overall view of your world, the better you will navigate unexpected events.
  • Live with BHAGS. Set big, hairy, audacious goals for yourself and your crew. The bigger your dreams, the more fun it is when you make them real.
  • Avoid negative people. Their attitudes can be contagious and poison morale. Build your network around positive people who inspire you and bring out innovative thinking and your best work.

Superintendents hold in their hands the franchise value of their course. Describe your plan to make it even better. Communicate your plans clearly and honestly. And never stop making yourself an even more valuable professional.

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

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. 

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