The Canadian Society of Club Managers Strategic Planning: Your Club, Your Future

1. The Canadian Society of Club Managers Strategic Planning: Your Club, Your Future Christian Stephan Tuesday, August 12 , 2008 Christian Stephan Consulting Inc.-Tel: 416-710-0665. E-mail: cstephan@courense.com

2. Strategic Planning What is Strategic Planning? Why Strategic Planning for a Club? How do you build your Strategic Plan ? Internal Assessment Agenda External Assessment SWOT Analysis Components of the Plan Value Proposition Strategic Initiatives Evaluation, Prioritization and Timing 2

3. Strategic Planning What is Strategic Planning? Why Strategic Planning for a Club? How do you build your Strategic Plan ? Internal Assessment Agenda External Assessment SWOT Analysis Components of the Plan Value Proposition Strategic Initiatives Evaluation, Prioritization and Timing 3

4. What is Strategic Planning ? • Strategic planning is an organization’s process of defining its Strategy or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. • Strategic planning is the formal consideration of an organization's future course. All strategic planning deals with at least one of three key questions: • For whom do we work? • Where do we want to go? • How can we excel at doing what we do? • In most organizations, this is viewed as a process for determining where an organization is going over the next 3 to 5 years. Today’s rapidity of evolution does not allow to go much beyond that. Strategic Planning Where we want to be How do we get there ? Where we are 4

5. Why Strategic Planning for a Club ? • No position is guaranteed for ever • Rapidly evolving environment creates increasing uncertainty about the future: • Evolution in cultural tastes • Evolution in life styles – Health, health foods • Evolution in technologies • Evolution of potential members profile • The challenge posed by retiring boomers • The coming of age of Generation X • The emergence of Generation Y • Evolution in the economic environment • Globalization • Economic cycles • The impact of rising energy and resources costs Strategic Planning Impact how Clubs are perceived and how they operate 5

6. Strategic Planning What is Strategic Planning? Why Strategic Planning for a Club? How do you build your Strategic Plan ? Internal Assessment Agenda External Assessment SWOT Analysis Components of the Plan Value Proposition Strategic Initiatives Evaluation, Prioritization and Timing 6

7. How do you go about building your Strategic Plan ? Internal Assessment External Assessment Building the Plan STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT) DEVELOPMENT AND EVALUATION OF STRATEGIC INITIATIVES STRATEGIC PLAN 7

8. The Internal Assessment should address Five key dimensions: Objectives: To establish an understanding on how efficient and effective the current organization and operations of the Club are. Organization structure and People Internal assessment Business and Operations Processes Space Financial and Management Information Technology 8

9. Internal Analysis: Organization and People • Determine if the club objectives and goals are clearly communicated and understood throughout the organization • Understand roles and responsibilities and identify possible causes of dysfunctions • Evaluate the effectiveness of the existing structure • Identify areas of concern and potential improvements • Identify possible limitations in skills sets and/or headcount OBJECTIVES Internal Assessment • Top down Interviews: • Board members • CEO and other executives • Lead Heads • If necessary and depending on the size of the Club, all full-time staff members on a function by function basis • Review job descriptions (if they exist) • Review internal Communication flows • Review HR policies • Review current skills set PROCESS 9

10. Internal Analysis:Business and Operations Processes • Determine if main processes are efficiently executed in terms of; • Resources and Costs • Time required • Quality of output • Identify areas for improvement OBJECTIVES Internal Assessment • Main areas reviewed: • Procurement • Kitchen • Foods and beverage services • Facilities management and maintenance • Event Planning and event management • Club specific activities (e.g. fitness, sport activities) • Security • Marketing and Communication • HR • Identify applicability of best practices PROCESS 10

11. Internal Analysis:Financials and management Information • Determine to what degree the Financial situation of the Club allows for investment and/or indebtedness. • Determine if reporting provides the appropriate information to Management and to the Board in an accurate, timely and suitably frequent manner. OBJECTIVES Internal Assessment Perform Balance Sheet Analysis • Determine Acid test ratio : Short term Assets/Short term liabilities. Should be higher than 1. • Determine Debt/Equity ratio. If significantly lower than 1, there may be room for long term debt. Perform P&L Analysis • Evolution of revenues and costs by areas/departments: Dining rooms, Bar, Events, etc. • How is profitability of operations determined i.e what are the profit and cost centers and how are costs allocated to each profit center? • Identify unprofitable areas and related causes Evaluate Budget and reporting process Evaluate Cash forecasting process Process 11

12. Internal Analysis:Technology • Determine if the applications used by the Club adequately support the various business and operations process. • Identify missing functionalities • Identify required improvements OBJECTIVES Internal Assessment • Members Data base • Reservations • Events planning • Food and beverage services • Accounting, Finance, Management Reporting and Control • Inventory control • Fixed assets controls • Scheduling • Document editing • Web site application (ease of update, user friendliness, etc.) PROCESS 12

13. Internal Analysis:Space • Understand what constraints if any are posed to operations by the current available space • Determine if the space of the club is adequately used and if there are opportunities to reallocate space or to expand space. • Identify possibility of alternative use of space OBJECTIVES Internal Assessment • Two step approach • Preliminary high level review to assess possibilities, without getting in detailed analysis • Review and feasibility assessment by specialists once options have been defined . PROCESS 13

14. External Analysis:Trends • Understand the elements of the environment that may impact the club and its membership OBJECTIVES External Assessment • Economic Factors • Economic growth • Cost of materials • Labour laws • Other Regulations • Socio-Cultural factors • Demographics • Life style trends • Evolution in technologies PROCESS 14

15. External Analysis:Members • Understand current members’ needs and use of the Club facilities • Assess members levels of satisfaction with services and facilities • Identify typology of members OBJECTIVES External Assessment • Analysis of membership evolution over time : composition, attrition rate , etc. • Members survey – on-line, off-line; • If possible organize focus groups • Analysis of survey according to various criteria : age, gender, behavioral characteristics linked to the use of the Club Services • Conduct in-depth interviews with a limited number of members to gain insights into member’s needs, motivation and evaluation criteria. PROCESS 15

16. External Analysis:Prospective members and Ex- members • Understand how the Club is perceived outside of its membership: • Awareness • Image • Identify motivation to join or not to join a club, and more specifically your club • Identify why ex-members have left the club OBJECTIVES External Assessment • Survey or limited number of In-depth Interviews (anonymity should be assured) PROCESS 16

17. External Analysis:Peers • Understand how other clubs are addressing similar issues • Identify best –or at least better – practice • Benchmark the operations OBJECTIVES • In-depth interviews in person or by phone • Secondary research utilizing the Internet • Areas under review: • Management of attrition • Use of Space • Procurement • Kitchen • Foods and beverage services • Facilities management and maintenanceEvent Planning and event management • Club specific activities • Security • Marketing and Communication • Etc. External Assessment PROCESS 17

18. The SWOT analysis summarizes the results of the Internal and External Assessment and sets the basis for the development of initiatives Correct or Minimize Fully Exploit Strengths Weaknesses SWOT Analysis Threats Opportunities Fend off or prepare contingencies Take advantage Get Prepared 18

19. Strategic Planning What is Strategic Planning? Why Strategic Planning for a Club? How do you build your Strategic Plan ? Internal Assessment Agenda External Assessment SWOT Analysis Components of the Plan Value Proposition Strategic Initiatives Evaluation, Prioritization and Timing 19

20. The strategic initiatives open to the Club are a direct function of its Value Proposition • All clubs have a Mission, which is their Raison d’être or why they exist, and Values which are shared among members • To define a strategy the club needs: • a Vision of where it wants to be in the future: • Size • Location • Financial position • Etc. This will allow to set objectives for the future • And a value proposition for its members • The value proposition is characterized by a clear statement of what the offering of the Club should be and what value it brings to the members. • The value proposition must bring a clear differentiation from what other clubs offer: • Go beyond fine wines and exquisite food • Go beyond classy surroundings and luxurious settings • What does/should your club offer that is truly different? • The value proposition is the first yardstick by which strategic initiatives must be evaluated Components of the Plam 20

21. Strategic initiatives usually cover between 5 and 7 key areas • Revenue Enhancement • Membership fees • Type of Events and programs • Prices • Fundraiser • Members • Acquisition of new members • Targeted action plan • Actions for current members • Service Offerings • New services • Improvement in current services • Marketing and Communication • Staff • Marketing Initiatives • Website • Operations • Kitchen • Dining rooms • Bars • House • Sports activities • Procurement • HR • Facilities Improvements and renovation Strategic Plan Components of the Plan 21

22. Strategic Initiatives must be evaluated and prioritized Evaluation and Prioritization Yes/No Hi/Med/Lo 22

23. Establish a timeline Priority Actions 2008 2009 A S O N D J F M A M J J A S O N D Very High Strategic Initiative 1 Strategic Initiative 2 Very High Strategic Initiative 3 Very High Very High Strategic Initiative 4 Timing Very High Strategic Initiative 5 Very High Strategic Initiative 6 Very High Strategic Initiative 7 High Strategic Initiative 8 High Top 10 accounts 2009 Plan Strategic Initiative 9 High Strategic Initiative 10 High Strategic Initiative 11 High Strategic Initiative 12 Medium Strategic Initiative 13 Low Strategic Initiative 4

24. Questions? Questions 24