REINVESTING FOR THE FUTURE
This prestigious club had a full membership and good levels of business. But this was not translating into operating surpluses. Cornerstone Golf were appointed to see where the disconnect might be.
A well-established and prestigious private members’ club was concerned that the golf side of the club was not in-line with their desired positioning. Good levels of business and a full membership were not translating into operating surpluses, that could be used to invest in the courses and facilities.
Cornerstone Golf were appointed for a long-term project to specifically address the management and governance structure, an ageing membership profile, falling revenues and shortcomings in the clubs outdated facilities, with a view to producing a 10-year business plan that would future proof the club and provide annual surpluses for re investment into the club facilities.
Cornerstone Golf felt that the positioning of the club was incorrect given its reputation and heritage. A data rationale pricing review had been deferred for many years but during the same period, payroll and overheads had been allow to climb and difficult decisions regarding underperformance had not been tackled.
The presentation of the course and facilities was out of kilter with the member’s expectations and the operating standards had slipped. The constitution and rules of the club did not lend themselves to timely decision making which had harmed the business.
A paper and associated three phase, ten year business plan was produced and presented to the club board and membership - this incorporated:
Changes to the constitution and rules
A full yield analysis of the tee sheet, the level of club competitions and the utilisation of the golf course by different sections of the membership
A complete review of the club’s pricing and recommendations for changes in rates
A complete review of the club’s membership structure and recommendations for changes in categories and access
Changes in personnel, job descriptions, roles and responsibilities
A refurbishment of the golf course, changes in personnel and an uplift in maintenance standards
Improvements to operating standards measured by surveys and a quarterly independent audit
The club has implemented all elements of the recommendations to date, is now full and sustainably profitable by producing enough annual surpluses to maintain existing standards and accumulate funds for future capital projects.