In a recent study from GGA’s Institute for Best Practice which examined the behaviors of 100 of the world’s top performing clubs, 79% of those clubs in Europe (including the UK) stated that their club is currently implementing a strategic plan. Is your club following the example set by these leading clubs?
In a recent study from GGA’s Institute for Best Practice which examined the behaviors of 100 of the world’s top performing clubs, 79% of those clubs in Europe (including the UK) stated that their club is currently implementing a strategic plan. Is your club following the example set by these leading clubs?
What is strategic planning?
Strategic planning is simply the process of defining long‐term goals and identifying the resources needed to achieve those goals. A strategic plan is the document that results from a strategic planning process and defines the following:
- The club’s vision or purpose for being in existence.
- Where the club wants to be in five-eight years in terms of its membership and financial position.
- How it intends to get there through a set of prioritized actions, based on market intelligence.
Why a strategic plan is important?
On the subject of change, esteemed management consultant Peter Drucker once said: “It is not necessary to change. Survival is not mandatory.” We feel just as strongly about strategic planning, which often calls for changes in the ways a club thinks and operates. It’s only important if you want to give your facility its best chance to succeed.
In today’s fragile economy and club environment, the greatest threat to survival is financial instability. This is a condition that is brought on by any number of factors and circumstances. In communities where a single business or industry dominates, if a major manufacturer cuts back on its workforce, the trickle‐down effect will be felt all the way to the club. Or, if a group of influential members decides that the clubhouse needs a renovation and ramrods approval of a capital expense that revenues cannot match, the club might suddenly find itself on shaky financial footing.
Unfortunately, we see examples of these scenarios – some unforeseen and unavoidable, others self‐inflicted – on a regular basis. For clubs that find themselves in these situations, a carefully developed strategic plan will help them survive; it may have even helped them avoid financial calamity in the first place.
Five elements of strategic planning.
There are five key elements of an effective strategic plan. Each defines a specific phase of the strategic planning process and collectively they help clubs avoid the “fatal flaws” of strategic planning.
- Market analysis. Start by comparing the club’s vision and mission statements to market reality. Is the club correctly positioned in its market? Does that position align with its vision and mission? Or has the market shifted (a common occurrence in recent years) to such an extent that the mission and/or vision needs to be revised? In the same study cited earlier, just 43% of club’s base their strategic plans on thorough market research.
- Financial analysis. Compare the club’s financial performance to documented and well‐researched best practices to gain a thorough understanding of the business and how well it is performing.
- Board retreat and focus group meetings. Solicit opinions on club direction, needs and priorities from an ad hoc group of board members. The board retreat is followed by focus group meetings with a randomly selected cross section of club members based on gender, age and length of membership. Input from these sessions provides the basis for the questions that make up the member survey.
- Member survey. A strategic plan focuses on the most important issues facing an organisation. The member survey should do the same thing. We consider the member survey the cornerstone of the strategic planning process because it helps uncover members’ expectations, how they define value and their tolerance for fees and dues increases. It tells the board what the majority of members want from their club and distinguishes the opinion of the silent majority from that of the vocal minority.
- Board presentation. Once member survey results are compiled and analysed, develop a recommended course of action for presentation to the committee/board/owner. These action steps might include such things as re‐starting and re‐targeting the membership marketing process and program, refining the scope of services at the club and aligning club programs and pricing to the priorities of the member audiences that are being served. Approval of the recommended course of action gives the green light to begin development of the strategic plan.
In total, the steps described above generally require three to four months to complete. The process is facilitated by open and clear channels of communication between those developing the plan and those providing input. It is exacerbated by the lack of the same thing.
The plan charts a course for the club to be best in class in the market segment it wants to own. Best in class should be the goal of every club, regardless of market segment. Clubs that are not best in class gravitate toward the middle of the market, where the majority of clubs reside. The middle of any market today (aka, average) is a confusing, costly and ultimately debilitating place to compete. It’s where clubs go to die.
If you would like a complementary copy of GGA’s Strategic Planning Whitepaper, you will find it here. Rob Hill is a Partner at GGA with responsibility for their EMEA Office. A former recipient of Boardroom Magazine’s “Strategic Planning Firm of the Year” award, GGA brings an unmatched financial, marketing and operational focus to each of its strategic assignments. The firm serves over 2,700 clients around the world from offices in USA, Canada, Europe and the Middle East. GGA is a CMAE Corporate Partner and you can learn more of their credentials and expertise at www.globalgolfadvisors.com
