Tag: strategy

Speaking the New Language of Brands

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GGA Partners Releases New Whitepaper on Private Club Branding as Part of Thought Leadership Series

‘Speaking the New Language of Brands’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Speaking the New Language of Brands, the second in its new series of thought leadership whitepapers.  This authoritative guide redefines a traditional brand value equation and illustrates how adding emotion and experience to a private club’s brand story will increase its value with members.

Speaking the New Language of Brands highlights ways iconic “mega-brands” mold, define, and advance their organizational identity toward the goal of influencing consumer purchasing decisions.  The paper evaluates a traditional outlook on the brand value equation and asserts a redefinition which paves the way to enhanced value perceptions among private club members.

“Traditionally, the key to building value in the eyes of the consumer has been demonstrated in a simple equation, where perceived value is equal to performance divided by price,” explained Henry DeLozier, one of several authors of the piece. “We believe there is a far more effective – and cost efficient – way to increase the value members place in your club and in your brand. It’s by introducing emotion and experience into the equation.”

In addition, the whitepaper argues that a successful branding program is based on the idea of “singularity” and should be designed with differentiation as the primary goal.  “Harkening to the days of the Old West, a branding program should differentiate your cow from all of the other cattle on the range,” said DeLozier.  In other words, creating in the mind of a member or prospective member the belief that there is no other club on the market quite like your club.

Building a brand is easier said than done.  For club managers not familiar with the brand development process, the whitepaper explains six essential steps for clubs to follow when constructing their brand and draws on examples from inside and outside the private club business.

In addition to branding, GGA Partners recently published a new strategic planning whitepaper and has confirmed that others in the series focused on governance and innovation will be published through the third quarter of 2020.

Click here to download the whitepaper

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, please visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

The New Urgency of Strategic Planning

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GGA Partners Continues Thought Leadership Series with Four New Whitepapers

‘The New Urgency of Strategic Planning’ Now Available for Download

TORONTO (June 10, 2020) – GGA Partners – international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities – will continue its thought leadership series with the publication of four new whitepapers to help leaders of golf, club, and leisure businesses make better-informed decisions regarding key planning and marketing challenges.  The whitepapers focus on strategic planning, branding, governance, and innovation.

Let’s Face It, Times Are Changing

That may be the understatement of the year.

Between rapidly advancing technology, economic uncertainty, transforming demographic and lifestyle stressors, and a digitally-connected global community, the environment for club and leisure-related businesses is more competitive than ever.

The business landscape is shifting and management stances are evolving, yet the principles of competition endure: one’s gain is another’s loss and the strongest will come out on top.

Knowledge is a tremendous source of strength and GGA Partners is developing authoritative reports on the industry’s most pressing issues and constructing advanced problem-solving guides for the road ahead.

The New Urgency of Strategic Planning

The strategic planning whitepaper, which can now be downloaded from the GGA Partners website, focuses on a misconception regarding the strategic planning process, according to Henry DeLozier, who along with GGA partners Steve Johnston, Rob Hill, Derek Johnston, and Michael Gregory authored the paper.

“Because of its traditional long-range horizons, many club leaders don’t prioritize strategic planning,” DeLozier said. “With conditions inside and outside the club environment changing as quickly as they are, there’s a new urgency to strategic planning.”

In addition, the whitepaper argues for a shorter planning cycle, ranging anywhere from 12 to 24 months, and a closer connection between strategy and execution.

“Businesses that are directly affected by shifts in the economy and consumer preferences should consider shorter planning cycles,” Johnston said.  “Think about it: Would a five-year strategic plan created in 2015 successfully guide your business today?”

Today’s most successful clubs look at their strategic plan as a blueprint for action, Hill added. “They don’t put their plans on a shelf to gather dust. They’re implementing their plans, adjusting as needed and executing their vision for the club.”

For club managers not familiar with the strategic planning process, the whitepaper explains five key steps in developing a plan and draws on examples from inside and outside the private club business.

In addition to strategic planning, other whitepapers in the series focused on branding, governance, and innovation will be published through the third quarter of 2020.  Discover more about the cross-section of high-impact topics GGA Partners is studying at ggapartners.com.

Click here to download the whitepaper

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information, visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

Not the Time to Wait

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Henry DeLozier highlights three important points for club leaders to ramp up club operations and refine their game plan.

When asked what steps they are taking to prepare their business for the post-COVID-19 environment, many small- and medium-sized business owners and managers say they’re taking a “wait-and-see” approach. While that attitude is understandable, with conditions and health and safety guidelines changing by the day, it’s also not advisable.

The more effective strategy is the one that many other businesses are taking to navigate the crisis in creative and productive ways: Anticipating and preparing for a post-COVID-19 business, whenever that may come and whatever it might resemble.

In a wide range of businesses, preemptive leaders are driving revenue through new marketing tactics and sales channels, putting new incentives in place to spur immediate purchasing and capture pent-up demand, moving more of their in-person interactions online, pivoting their business to address new needs and developing new products to position their business when customer demand returns to normal.

Others are enhancing their digital presence by sprucing up their website with new content or fixing online issues for a better customer experience. And many businesses are strategizing by mapping out potential scenarios for the future.

Three important points to consider when ramping up club operations:

1. Update the club’s financial plan.

The business interruption and financial impacts will be profound and may even threaten the club’s existence. The board must reset the club’s financial plan by evaluating the current in-flow of dues revenue and the realistic projection of pending banquet and catering activity. Refer to the club’s historic reference points for revenue as the key component in ramping up successfully. Balance revenue projections with the probable attrition rate caused by members who will leave the club for health and financial reasons.

Look realistically at the club’s expenses and prepare yourself – they will be discouraging. Plan to restart programs and services in a phased manner that focuses on the most popular and engaging programs in the eyes of your members.

It’s important to remember that members may have different priorities in a post-recession world. Knowing what those are through surveys and focus groups is far more advisable than assuming the old normal is also the new normal. Keep in mind that the club may not be able to restart at a level and pace that meets members’ expectations without what may be significant investments.

In a financial sense, the club is starting over financially. This can be good for clubs overloaded with expensive debt since it gives them incentive to renegotiate their debt structure. Interest rates are at historic lows and will remain so for some time. This makes it a good time to restructure the club’s financial plan to remove historic flaws, such as membership-optional communities and outdated governance practices.

2. Strengthen your team.

Every club in your area is being affected differently by the pandemic. Some will retain staff with little change. Others will be forced to reduce operations, programs and staff. Some of your own employees will decide not to return or may be unavailable. Be prepared and recruit aggressively to fill and strengthen key positions on your team. It’s also a good time to review and update personnel records, roles and benefits.

3. Introduce new social programs.

As leaders hit the reset button, remember that private clubs enjoy an emotional relationship with their members far more than a transactional one. When evaluating and creating programs, consider the following:

Members will want to see one another and be seen. There will be a great opportunity for friends to be reunited and reminded that their club is a safe haven for their families and friends.

Look at events that are either successive – where one event sets the stage for the next – or part of a series of similar events. Give members the sense of ongoing relationships rather than one-off types of events.

Host member information exchanges. As members anticipate their clubs reopening, they will have lots of questions, which can be boiled down to “What’s changed – and what hasn’t?” Assemble a team of staff members who constitute the Answers Team.

Get ahead of questions by anticipating as many as you can and communicating the answers widely through email, newsletters and social media.

Creating a Reliable Game Plan

The most effective transitional leaders will be those who can manage information aggressively. Keep your stakeholder groups of members, employees, suppliers, and extended business partners – like bankers and insurance carriers – well-informed.

Your members and stakeholders want information, to be sure. Even more importantly, they want confidence that their club is in steady hands. They want to see evidence – action more so than talk – that the club is taking measured steps and addressing the key strategic issues without distraction with petty short-term matters. This capability requires a reliable game plan.

In May, GGA Partners conducted a series of weekly webinars to help club leaders construct their game plan and illustrate the thought processes that go into reopening and operating again in the wake of COVID-19. The sessions offered a deeper look into these three important points and tactics to prepare for a post-pandemic business environment.

The archive of each webinar and accompanying slide deck (if applicable) are available on CMAA University, complimentary to all CMAA members. Once you are signed in to CMAA University, you can find the recording and accompanying resources under CMAA Member Education, COVID-19 Resources. The content is then organized by topic area, see below for where each of the four webinars are housed:

Crisis Management and Communications

Changing Communications for Changing Times – Linda Dillenbeck & Bennett DeLozier – May 27, 2020

Member Surveys in Uncertain Times – Michael Gregory & Ben Hopkinson – May 20, 2020

Reopening Your Club

Transitional Leadership: Restarting Your Club – Henry DeLozier – May 6, 2020

If you don’t know your login information, please contact CMAA through this online form.

 

This article also featured in Golf Course Industry magazine. 

Running Toward Change

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This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees because of the global health crisis. Today, Henry DeLozier suggests that change on a massive scale is no longer something that should surprise us.

Technology’s tools give clubs a way to prepare for the new normal.

We’re hearing a lot these days about the “new normal” and how the coronavirus has forever changed the ways we work, shop, travel and interact.

But wasn’t it not long ago that we were talking about another new normal? Remember the new normal that followed the financial crisis of 2007-2008, which led to a global recession? That pivot from the previously abnormal to a new normal ushered in more stringent guidelines for financial institutions and in a much larger sense ushered out the sense of trust we had in many other institutions and the people who ran them.

And although the term was not yet in vogue, didn’t the seismic shift from analog to digital – the tipping point came in 2002, when the world began storing more information in digital than in analog format – qualify as a new normal?

All of which led some creative soul to design a bumper sticker that said it all: Change Happens. (You may remember it with a synonym for change.) The most adaptable among us learn to deal with change; the most successful turn it into a competitive advantage. How do they do it?

Don’t be surprised – be prepared.

When he first heard Bob Dylan’s 1965 anthem “Like a Rolling Stone,” Bruce Springsteen said, “[It] sounded like somebody’d kicked open the door to your mind.” With that song, Dylan changed how artists thought about making music. Major change often seems to arrive suddenly – with the speed of a stone rolling down a steep hill – and without warning. Its capriciousness makes us anxious. But if we know it’s coming, we shouldn’t be surprised. We should be prepared.

An embrace of the tools that technology now affords us is an important key to our preparation.

Derek Johnston, a partner in our firm, says although club leaders could not have anticipated the pandemic, they could have been better prepared.

“Many clubs were ill-prepared to quickly analyze the potential impacts of the coronavirus pandemic, to run initial scenarios, to easily gather more information, to test their hypotheses with their membership and, ultimately, set a course of action,” he says.

That is not to say that clubs have responded poorly. On the contrary, club leaders have performed in truly admirable fashion. Many clubs just had to work much harder than those that had already implemented data analytics processes and plug-and-play dashboarding tools, like MetricsFirst or continuous member feedback tools like MemberInsight.

“Some club leaders still question the need to bother with data analytics tools and programs. This misunderstanding is simply misguided,” Johnston says, adding that the term “analytics” seems to intimidate some and conjure visions of data overload and complexity. Another fallacy, Johnston says. “Data analytics, when executed properly, is intended to actually simplify information and present insights in very crisp, clean, and easy to understand ways.”

Ginni Rometty, executive chair of IBM, told Fortune magazine editor Alan Murray, “There is no doubt this [coronavirus] will speed up everyone’s transition to be a digital business.” She identified four areas of impending change: 1) the movement to the cloud; 2) the move toward automation; 3) the overhaul of supply chains, and 4) the movement toward new ways of doing work. Each force will happen in accelerated fashion, she predicts.

Rometty is not alone in her assessment. Almost two out of three respondents to a recent Fortune survey of Fortune 500 CEOs expect technological transformation to accelerate. Doug Merritt, CEO at Splunk, a big-data platform, pointed out two important observations: 1) a rapid digital transformation and 2) the elevated importance of gathering and interrogating data.

Top-performing clubs will similarly leverage the pandemic to implement advanced methods for executing work and providing services. Retooling such routine practices as monthly billings, guest policy tracking, and point-of-sale transactions will happen quickly. Likewise, separating work from jobs will trend even more in the wake of the pandemic.

“Clubs that are actively maintaining both real-time operating dashboards and strategic dashboards, combined with a proper financial model, are taking preemptive steps toward dealing with change,” Johnston says. “When it happens – and we know it will – they will experience far less conflict amongst their management team and their board. Ultimately, their preparation will enable better decisions, faster.”

Getting the Right People on the Bus

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This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Today, in the second of two articles on strategic people planning, Patrick DeLozier (Director, GGA Partners) and Jodie Cunningham (Partner, Optimus Talent Partners) highlight the importance of talent planning and optimization for a post-COVID-19 future.

Now’s a great time to re-examine job requirements to ensure the best fit for your club

In our first article on strategic people planning we discussed the first two phases of talent optimization: 1) adapting your business strategy and 2) plotting your revised organizational structure. In part two, we will focus on phases three and four: 3) selecting the right talent and 4) inspiring people development and engagement.

This part of your strategic people plan centers on filling roles in your organization with people best suited for the job. It’s a process that author Jim Collins in Good to Great likened to bus drivers (leaders) getting the right people on the bus (team), the wrong people off the bus, and the right people in the right seats (roles).

One cautionary note as we begin: Someone who was right for a specific role pre-pandemic may not be right for the same role now. Your business has changed, and some people may need to change seats. Others may need to get off the bus.

Phase 3: Select the Right Talent

Define the job. Before you start inserting applicants and rehires into the selection equation, you need to define your jobs. Without clarity, anyone involved in the hiring process will simply be guessing about those best fit for the job. The answers to a few basic questions will help form a solid job description.

 

  • What are the most important and frequent activities of this role?
  • What specific knowledge, skills and abilities are required?
  • What skills and experiences are complementary to those of the current team?
  • What behavioral style and temperament is best suited in this role?
  • Is independent decision-making or collaboration more important?
  • Does this role require social interaction or a more analytical, introspective approach?
  • Are normal working conditions in this role stable and consistent or constantly changing and pressure-filled?
  • Does this role require a big picture, strategic view where risk taking is welcomed, or is it more task oriented and risk-averse in nature?

To win the war for talent, your managers must be fully invested in driving the hiring process from start to finish. When you train managers to use people data in the hiring process, they will make smart, objective decisions, as opposed to desperate or bias-filled ones. Managers should enter the hiring process with the following information, knowledge and understanding.

 

  • A plan for all three phases of the interview process: before, during and after the interview.
  • A list of functional and behavioral-based questions that ensure consistency across all interviews.
  • An understanding of how to probe for (and evaluate) detailed applicant responses.
  • An understanding of the information they should and should not share regarding club culture, benefits and working experience? (Remember, the applicants are interviewing the club as well.)

Phase 4: Inspire People Development and Engagement

Once you have hired your team, it is critical to keep them engaged and ensure they work effectively together. To do this, you need to be mindful of four forces that can lead to employee disengagement:

 

  • Misalignment with the job. Poorly defined positions, sloppy hiring practices and evolving business needs can create a mismatch between employees and their roles. A bad fit will ultimately affect motivation and productivity.
  • Misalignment with the manager. The relationship between employees and their managers is the most critical contributor to engagement. But many managers are poorly equipped or not trained to effectively understand their employees’ individual needs. They struggle to communicate with and motive their employees.
  • Misalignment with the team. Team-based work is more critical than ever, yet poor communication, insufficient collaboration and an inability to manage tensions inherent to teamwork extract a major toll on productivity and innovation.
  • Misalignment with the culture. To be productive and engaged, employees need to feel they belong. When they feel out of sync with their organization’s values, or when they lose trust in their leadership, their own performance suffers. The result can be a toxic work environment that undermines productivity.

As clubs emerge from a pandemic-enforced hibernation and begin to re-establish business operations, now is an ideal time to evaluate the roles and responsibilities that make your club function efficiently and effectively.

Carefully defining each important job, making sure those involved in the hiring process are well-prepared and being alert to employees who may not be the ideal fit will help ensure that you have the right people on the bus and that they’re in the right seats. Your club’s success depends on it.

Talent: The Big Differentiator

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This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Today, in the first of two articles on strategic people planning, Patrick DeLozier (Director, GGA Partners) and Jodie Cunningham (Partner, Optimus Talent Partners) highlight the importance of talent planning and optimization for a post-COVID-19 future.

A strategic people plan turns vision into reality.

“You can design and create and build the most wonderful place in the world. But it takes people to make the dream a reality.”

– Walt Disney

Every club has a strategy and a corresponding expectation: If it executes the strategy effectively, it will grow and prosper. Underpinning its strategy are detailed plans – financial plans, marketing plans, capital plans and agronomic plans. The most successful businesses, including the most successful private clubs, also have what we consider the most important plan – a people plan.

Creating a people plan – one that aligns the goals of an overall strategy with the talents and passions of your team – is a discipline known as talent optimization. Just as Walt Disney turned over the execution of his vision for “the most wonderful place in the world” to smart managers and thousands of Disney cast members, today’s astute club leaders turn to their teams of dedicated staff to implement their vision for long-term success.

As you face the challenges brought on by this crisis, there is no better time to examine your staffing model and create a strategic people plan to guide your new normal. In a post-pandemic future, your people strategy must change because the world has changed. There are four important phases to navigate to adjust your talent optimization plan:

Phase 1: Adapt your business strategy

Based on how business has changed recently, ask yourself:

 

  • What are you trying to accomplish?
  • What does success look like?
  • How will you flex to meet the demands of your new normal?
  • What new processes/products/services will you offer?
  • What processes/products/services will you eliminate?
  • Operationally and culturally, what’s working? What’s not working?

Recalibrating your strategy will involve tough decisions. You will need to assess the strength of the business, an exercise that will force an examination of people in key management positions, as well as support staff. For help, reach out to your network and bounce ideas off your colleagues. Enlist professional consultants to brainstorm best practices. And don’t be deterred if you hear “that will never work.”  Most great ideas start with critics who recite those exact words.

This is the perfect opportunity to hit the reset button. Think about all the times you wished you could make changes but allowed circumstances to delay acting. Now is the time to give yourself permission to pivot, to try new things and to take calculated risks.

Phase 2: Plot your revised organizational structure

As you finalize your new business strategy, you need to flex your people plan.

 

  • Take time to reimagine how your team should be optimally structured
  • What does your perfect world organizational chart look like?
  • What talents do you need more of? Less of?
  • Don’t think “specific people, specific titles, specific pay rates”
  • Instead, think “positions, responsibilities, behaviors, skills and talents”

As you create this new organizational structure, keep in mind how your operation is changing.  Will there be more curbside service in the future? Will there be fewer group activities? Will there be a greater need for virtual activities? Will there be a less formal food and beverage operation? Will there be a greater need for technology integration?

The Future Is Now

Let’s be clear about why a club business strategy is important:

 

  • It determines where the club is going
  • It gives a sense of direction for the entire club, employees and members alike
  • It supports smarter decision-making

Your club business strategy, which communicates key aspects of why and how the club operates, includes:

 

  • Objectives the club wants to achieve
  • Its services, products, stakeholders and members
  • Guidance on how the club competes and operates in its segment
  • Financial resources required to achieve the objectives and support the operating model

Talent is arguably the last big differentiator a business has. It is what stands between average clubs and innovative clubs. In our next article, we will dig into phases three and four and discuss the process of selecting the right talent to support your revised business strategy and creating a plan to develop that talent for long term success.

Planning For a Crisis

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

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

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

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

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

1. Designate a spokesperson.

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

2. Establish communications protocols.

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

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

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

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

3. Prepare for the unexpected.

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

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

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

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

4. Inform and educate staff. 

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

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

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

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

Think Big Entering A New Decade

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Thinking of big changes in 2020?  Writing for Golf Course Industry Magazine, GGA Partner Henry DeLozier shares four macro changes to consider as the new decade begins.

Golf no longer exists in a vacuum, separate and distinct from market forces that shape other mainstream businesses. Gone are the days when golf club and facility managers could operate without a sensitive finger on the pulse of social, environmental and political changes affecting their business. As we enter the third decade of the 21st century, here are four macro changes to be aware of and to use to your advantage.

1. New solutions to labor shortages

Traditionally, labor costs for golf courses have ranged from 52 to 56 percent of golf course maintenance budgets. With increases in minimum wages and the ripple effect throughout organizational charts, labor costs continue to escalate. Derek Johnston, a partner at Global Golf Advisors, says labor costs have jumped as much as 6 percent.

Operators managed the first wave of escalating labor costs by reducing head counts and outsourcing certain activities to third-party contractors. Now, they are being forced to get more creative to deal with what is by far the facility’s single largest line item. Some have reacted by flattening their org charts, eliminating supervisory positions and restructuring responsibilities for some managers and staffers. As a result, staffing levels that ranged from 19 to 25 employees per 18-hole course are in significant decline.

Labor will remain a primary focus and concern for operators in 2020. Suggestions for managing rising costs are to re-evaluate all operational activities with an eye for possible benefits to be gained from outsourcing; take labor-intensive components of your operation and determine how the work could be accomplished more efficiently; and look at non-golf sectors for solutions being implemented in other fields such as hospitality and manufacturing.

2. Increased environmental awareness

Golf courses throughout North America have embraced opportunities to increase their environmental stewardship. Beekeeping, which sustains the bee population and ensures ongoing pollination; bat houses, which address mosquito infestations; and habitat restoration for butterflies, especially monarchs, whose habitat supports pheasant, quail, waterfowl and many other species; have been introduced at many locales.

Making golf courses and their surrounding grounds environmental sanctuaries is resonating with key market influencers, including millennials and women, who are also prime targets for increasing play and membership. Audubon International CEO Christine Kane reports that clubs as sanctuary communities are on the rise nationwide: “Audubon-recognized sanctuary communities have increased more than 20 percent over the past five years,” according to Kane.

Progressive superintendents and golf managers who expand the reach and impact of their environmental efforts will be viewed favorably by community leaders as well as current and prospective members and customers.

3. Expanded reach of social media

Superintendents and facility managers have become important sources of content relevant to club members and consumers. Photographic images of flora and fauna on club grounds are of interest to members who take pride in their clubs’ beauty and connection to the environment.

Instagram and Twitter can be used to show images sourced by staff members — golf course workers, cooks, janitors, golf professionals — who are alert to opportunities to snap butterfly habitats, wildflowers and all sorts of wildlife that call the club home. Such images are often posted to the club website and distributed to club members and visitors as a means for extending brand engagement.

Gone are the days of the cut-and-paste guidance for how to repair a ball mark. The increased relevance and timeliness of today’s news is attributed to the capability and proliferation of social media.

4. Comprehensive planning

The growth of strategic planning (supported by specialized plans for marketing, communications, finance and membership) is another example of general business’s influence on a more enlightened group of golf managers. Just as most any business relies on a strategic plan to guide its decision-making, golf is recognizing the importance of establishing a clear vision that serves to prioritize programming and investment. Top performers rely on data-based plans to distinguish their facilities not only in overcrowded markets, but also with consumers debating their leisure activities and spending. Those facilities that create market differentiation will prosper in 2020 and beyond.

Does Your Club Have An Identity Crisis?

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“Today, brands are stories. (…) carefully developed and aimed at preidentified market segments whose wants, needs and expectations align with the intended benefits of the product.” – Henry DeLozier

But change can often bring about a mismatch between the story and the segments you want to attract. GGA’s Bennett DeLozier outlines how to determine whether your club’s visual identity is true to what it represents.

A lot of things have changed in the last decade. In politics, in society, in the environment we all share. This impacts how we feel, how we interact with each other, and what products and services we want to be a part of our everyday lives.

These changes are evident at the club level, too. Aspects of your club may be unrecognizable from what they were ten years ago, from membership categories, to club amenities, to the profile of your members, and even the culture of the club. Sometimes this change has come as a result of proactive planning, sometimes reactive necessity.

But while many clubs have changed dramatically, we often find the brand pillars and visual identity (logo, colors, mission, values, purpose, positioning, voice, tone, look-and-feel of the club) get left behind. In other words, the club is missing the opportunity to illustrate and communicate what makes it different, compelling, and worth someone’s interest.

Given the state of over-supply for clubs in most metropolitan markets, brand management which enables effective market differentiation is essential. But before embarking on a rebranding effort without professional guidance, clubs can and should seek to periodically assess the state of their brand identity and how compelling a proposition it is to target member or customer segments

Stick or twist

How do you go about assessing the current brand and the potential need for change?

First, club managers and leaders must understand the power of brand. This means knowing the market segments the club serves and those it aspires to serve in the future. It requires a grasp of buyer motivations and the reasons people are motivated to join the club.

Second, and in order to evaluate whether there is a need for change, you should engage your board in a strategic brand audit and follow a clear process, similar to the indicative one below:

1. Ask your members, past members, stakeholders, and staff for their thoughts via a bespoke survey.

It’s also valuable to solicit input on brand perceptions from those outside of your intraclub community, particularly from competitors and people with whom current and prospective members are likely to interact (such as realtors, local community groups, fitness centers, apartment complexes, senior living homes, or neighboring schools). This will (quickly) help you to gain a sense of how those most important to the club view it, and allow you to identify any potential mismatch between what the club is, and how it communicates that with the wider world.

2. Assess the costs and benefits of a brand change or an identity evolution.

For instance, how will repositioning the club’s brand help to open up new target customer segments? How might it affect your typical core customer base? What is the cost of any proposed change, both financial and perceptual?

This exercise need not be overly complicated, a good old-fashioned SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) will cover off most of the key points to consider. Outline the opportunities and threats in a rational, pragmatic way to determine the most suitable outcome.

3. Marry your findings with your strategic plan.

How strong is the desire for change and how does this synchronize with your club’s future plans? It’s crucially important not to get drawn into making a decision for the now and foregoing any sense of futureproofing.

For instance, if you are set to launch a multi-sport facility and fitness center next year, are planning to unveil some luxury lodges the year after, and have been considering enhanced family programming for months, all this needs to be factored into the new identity you create.

Charting the future

Change is never easy. It feels uncomfortable. And risky. But sometimes standing still will only serve to do your club an injustice, poorly reflecting its attributes, story and emotional value to those that engage with it.

In that case, the benefits are there to be seized: appealing to new customer segments, futureproofing the club (socially and fiscally), and uniting those closest to the club around a clear sense of what it is and what it represents.

GGA Expands Senior Leadership Ranks

Date:

Michael Gregory and Craig Johnston named partners of the firm

TORONTO, Ontario – GGA, the leading authority on successful ownership and management practices for golf, private club, resort, and residential real estate businesses, has named Michael Gregory and Craig Johnston partners of the firm.

Gregory joined GGA in 2007 following a successful college career during which he was an All-American scholar earning a business degree and captain of the golf team.  Since joining the firm, he has helped more than 400 clubs develop and implement a game plan for success. In addition to his client relationships, Michael has managed the firm’s internal workflow team of business analysts and market researchers for the past five years.

Gregory serves as a lead strategist for successful private club business and membership solutions at GGA and is renowned for his ability to use comprehensive membership and market intelligence to develop actionable strategic solutions for clients.

Johnston is a Chartered Professional Accountant (CPA, CA) and alumnus of KPMG. Prior to joining GGA, as a ranked equity research analyst for Scotia Capital, he was recognized in 2016 by Thomson Reuters as the #1 earnings estimator in his sector.

Johnston supports GGA clients in the development and implementation of goal-oriented business strategies to achieve targeted operating and investment objectives. He is a seasoned business strategist and investment executive who leads GGA’s transaction advisory practice, having successfully advised on some of the largest transactions in the club industry over the past three years.

“Craig and Michael have distinguished themselves as expert, reliable confidants to our clients and deliver value day-in and day-out,” commented GGA Senior Partner Henry DeLozier. “The firm will benefit from their joining the senior leadership ranks.”

“Both Michael and Craig have become clear leaders in our firm and mentors to our team of consultants,” said Founding Partner Stephen Johnston.  “Their work ethic and dedication to excellence in professional services is an incredible asset to our firm.”

About GGA

GGA has provided industry-leading advisory services to more than 3,000 clients worldwide including private clubs, hotels, resorts, residential golf communities, developers, homebuilders, government agencies and municipalities, financial institutions, investors and lenders. Operating out of three global offices in Toronto, Phoenix, and Dublin, GGA is a highly specialized consulting firm focused on club and leisure related assets with a professional services heritage as the KPMG Golf Industry Practice. The firm’s expertise lies in its ability to effectively meld club management and operational expertise with highly capable professional strategists and experienced business analysts. GGA personnel include former club managers with experience leading exceptional clubs, along with alumni of Deloitte, Fairmont, KPMG, Marriott, Pulte Homes, PwC, and Scotia Capital. For more information, please visit www.globalgolfadvisors.com.

Media Contact

Derek Johnston, Partner at GGA
djohnston@globalgolfadvisors.com
905-726-0701

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