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

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: [email protected]

2

Strategic Planning

Internal Assessment

External Assessment

SWOT Analysis

How do you build your Strategic Plan ?

Components of the Plan

Value Proposition

Strategic Initiatives

Evaluation, Prioritization and Timing

What is Strategic Planning?

Why Strategic Planning for a Club?

Ag

end

a

3

Strategic Planning

Internal Assessment

External Assessment

SWOT Analysis



Value Proposition





Ag

end

a

• 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.

4

What is Strategic Planning ?

Where we are

Where we

want to be

How do we get there ?

Str

ateg

ic P

lan

nin

g

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

Impact how Clubs are perceived and how they operate

Str

ateg

ic P

lan

nin

g

6

Strategic Planning

Internal Assessment

External Assessment

SWOT Analysis



Value Proposition





Ag

end

a

7

How do you go about building your Strategic Plan ?

InternalAssessment

External Assessment

STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT)

DEVELOPMENT AND EVALUATION OF STRATEGIC INITIATIVES

STRATEGIC PLAN

Bu

ildin

g t

he

Pla

n

Objectives: To establish an understanding on how efficient and effective the current organization and operations of the Club are.

8

The Internal Assessment should address Five key dimensions:In

tern

al a

sses

smen

t

Organization structure and People

Business andOperations Processes

Financial and ManagementInformation

Technology

Space

9

Internal Analysis: Organization and People

Inte

rnal

Ass

essm

ent

• 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

• 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 headcountO

BJEC

TIVE

SPR

OCE

SS

10

Internal Analysis:Business and Operations Processes

Inte

rnal

Ass

essm

ent

• 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

• Determine if main processes are efficiently executed in terms of;• Resources and Costs• Time required• Quality of output

• Identify areas for improvementOBJ

ECTI

VES

B-010Perform

Constituent SetUp

B-020Receive Claim

Notice

B-030Triage / Assign

Claim

B-040Initial Claim Setup

B-050Perform

Investigation

B-060Manage Claim

Reserves

B-070Negotiate andSettle Claims

B-080Manage Litigation

B-090Issue Payment

B-100DetermineSalvage

B-110Determine

Subrogation

B-120Determine

Reinsurance

B-130Evaluate Fraud

B-140Perform Reporting

B-150Manage / Review

Billing

B-160Perform Claims

Audit

B-170Manage Claim

Department

B-180Manage VendorRelationships

B-190Manage Exposure

B-200Determine Loss

Control

BManage Benefits & Claims

B-010Perform

Constituent SetUp

B-020Receive Claim

Notice


Claim


B-050Perform

Investigation

B-060Manage Claim

Reserves



B-090Issue Payment


B-110Determine

Subrogation

B-120Determine

Reinsurance

B-130Evaluate Fraud



Billing

B-160Perform Claims

Audit

B-170Manage Claim

Department



B-200Determine Loss

Control

BManage Benefits & Claims Process

Sub-Process

ActivitiesManage Benefits and Claims

Manage Litigation B-050

Return toPrevious Level

Gather RelevantInformation and Reports

Interview Insured/Claimant/Witness

Assess Potential Fraud

Assess PotentialSubrogation

Assess SalvagePotential

Update Claim File

Determine LiabilityCan A LiabilityDecision Be

Made?

No

Is there anyInsured Liability?

Communicate ClaimDenial

No

Close Claim File

Review ReinsuranceAgreements

Yes

Does reinsuranceapply?

FraudInvestigation

Required?

Potential Exists?

Salvage PotentialExists?

Yes

Yes

Yes

Yes

Yes

B-120DetermineReinsurance

B-130Evaluate Fraud

B-110DetermineSubrogation


B-060Manage ClaimReserves

B-050PerformInvestigation

IndustryPrintTM

Insurance IndustryOperational Processes

Manage Benefits and ClaimsManage Litigation B-050







Update Claim File


Made?

No



No

Close Claim File


Yes


FraudInvestigation

Required?

Potential Exists?


Yes

Yes

Yes

Yes

Yes


B-130Evaluate Fraud





IndustryPrintTM


CProvide Customer

Service

DDevelop & Manage Products/

Services

CProvide Customer

Service


Services

B-010Perform

Constituent SetUp

B-020Receive Claim

Notice


Claim


B-050Perform

Investigation

B-060Manage Claim

Reserves



B-090Issue Payment


B-110Determine

Subrogation

B-120Determine

Reinsurance

B-130Evaluate Fraud



Billing

B-160Perform Claims

Audit

B-170Manage Claim

Department



B-200Determine Loss

Control

BManage Benefits & Claims

B-010Perform

Constituent SetUp

B-020Receive Claim

Notice


Claim


B-050Perform

Investigation

B-060Manage Claim

Reserves



B-090Issue Payment


B-110Determine

Subrogation

B-120Determine

Reinsurance

B-130Evaluate Fraud



Billing

B-160Perform Claims

Audit

B-170Manage Claim

Department



B-200Determine Loss

Control

BManage Benefits & Claims Process

Sub-Process

ActivitiesManage Benefits and Claims

Manage Litigation B-050







Update Claim File


Made?

No



No

Close Claim File


Yes


FraudInvestigation

Required?

Potential Exists?


Yes

Yes

Yes

Yes

Yes


B-130Evaluate Fraud





IndustryPrintTM


Manage Benefits and ClaimsManage Litigation B-050







Update Claim File


Made?

No



No

Close Claim File


Yes


FraudInvestigation

Required?

Potential Exists?


Yes

Yes

Yes

Yes

Yes


B-130Evaluate Fraud





IndustryPrintTM


CProvide Customer

Service


Services

CProvide Customer

Service


Services

PRO

CESS

11

Internal Analysis:Financials and management Information

Inte

rnal

Ass

essm

ent

Proc

ess

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 causesEvaluate Budget and reporting processEvaluate Cash forecasting process

• 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.

OBJ

ECTI

VES

Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H

FIT Attachment:[EXCEL WORKSHEET ICON]

Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.

Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability

Related Management Issues:Management Issue Name -Management Issue Link -

Supporting Evidence:































12

Internal Analysis:Technology

Inte

rnal

Ass

essm

ent

• 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.)

• Determine if the applications used by the Club adequately support the various business and operations process.

• Identify missing functionalities• Identify required improvements

OBJ

ECTI

VES

PRO

CESS

13

Internal Analysis:Space

Inte

rnal

Ass

essm

ent

• 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 .

• 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

OBJ

ECTI

VES

PRO

CESS

14

External Analysis:Trends

Ext

ern

al A

sses

smen

t

• Understand the elements of the environment that may impact the club and its membership

OBJ

ECTI

VES

• Economic Factors• Economic growth• Cost of materials• Labour laws• Other Regulations

• Socio-Cultural factors • Demographics• Life style trends• Evolution in technologies

PRO

CESS

15

External Analysis:Members

Ext

ern

al A

sses

smen

t

• 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.

• Understand current members’ needs and use of the Club facilities• Assess members levels of satisfaction with services and facilities• Identify typology of members

OBJ

ECTI

VES

PRO

CESS

16

External Analysis:Prospective members and Ex- members

Ext

ern

al A

sses

smen

t

• Survey or limited number of In-depth Interviews (anonymity should be assured)

• 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 O

BJEC

TIVE

SPR

OCE

SS

17

External Analysis:Peers

Ext

ern

al A

sses

smen

t

PRO

CESS

• 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.

• Understand how other clubs are addressing similar issues • Identify best –or at least better – practice• Benchmark the operations

OBJ

ECTI

VES

18

SW

OT

An

alys

is

The SWOT analysis summarizes the results of the Internal and External Assessment and sets the basis for the development of initiatives

StrengthsFully Exploit Weaknesses Correct or Minimize

OpportunitiesTake advantageGet Prepared

Threats Fend off or prepare contingencies

19

Strategic Planning

Internal Assessment

External Assessment

SWOT Analysis



Value Proposition





Ag

end

a

20

Co

mp

on

ents

of

the

Pla

m 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

21

Co

mp

on

ents

of

the

Pla

n 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

StrategicPlan

22

Eva

luat

ion

an

d P

rio

riti

zati

on

Strategic Initiatives must be evaluated and prioritized

Strategic Initiatives Feasibility Costs ROI Duration Priority

Revenue Enhancement

Members

Service Offering

Marketing and Communications

Operations

HR

Facilities improvements

Yes/No Hi/Med/Lo

Strategic Initiative 1

Actions2009

A S O N D J F M A M J J A S O N D

2008

Top 10 accounts 2009 Plan

Priority

Very High

Very High

Very High

High

Very High

Very High

High

High

Medium

High

Low

Establish a timelineT

imin

g

Very High

Very High

High














24

Qu

esti

on

sQuestions ?

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

Documents

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