NGCSA

Most of us are tired of reading the newspaper and trade publications that impart the misfortune and calamity of our current economy.  However, we must recognize that we are in a cyclic downturn.  Eventually the economy will improve.  But in the meantime, we must modify our goals to withstand the immediate dynamics of a struggling industry.  To ignore the business environment of today may spiral us into a deeper abyss.

Some courses are meeting revenue projections, but the majority of facilities are struggling to balance the budget.  As superintendents we minimally and indirectly have an affect on revenues.  We have much greater influence on expenditures.  Many articles have been published on “how to” survive these economic times.  Whether it is cutting staff, using generics, delaying equipment purchases, raising threshold damage levels, cutting nutrition rates, pre-booking costs, or reducing mowing frequencies, the net results will be reduced services and lower quality conditioning.  I have been confused by the comments of my peers stating they are slashing their budgets…..but they will not compromise service and conditioning.  If you are operating at a high efficiency how can these components not be diminished?

Instead of emphasizing the “doom and gloom” and “woe is me” attitude, maybe we should view our current fiscal challenges as an opportunity to showcase and promote our business and management skills.  The “flat growth” of the past several years has forced most of us to closely scrutinize our operations.  The current economic mess did not happen overnight.  Our facility has been “adjusting” the budget for the last two years.  New federal governmental leadership and global unrest has only increased the uncertainty of the future.  The challenge of creating the 2009 budget was overwhelming.  The Board of Directors and I concluded we needed to formulate a budget for a worsening economy.  We did not want to lessen service or present an inferior product, but we needed to research all alternatives.  We needed to not only formulate a fiscally responsible budget but more importantly develop an action plan that would demonstrate our commitment toward sustainability.  With these directives from the BOD, I decided to present three separate budgets/plans to the Budget Committee…..one of extended growth and a continuation of planned improvements (4% increase)…..the second which froze expenditures to 2008 levels (I had finished the 2008 season 9% under budget)…..and the third plan which curtailed spending an additional 10% from 2008 levels.  After a thorough discussion the BOD decided to “freeze” expenditures at the 2008 levels.
Not my budget of choice!  But I was pleased to be able to be apart of the process and explain the ramifications of each plan.  I needed to be a part of the solution….not the problem.  We all agreed that if revenues rebounded we would adjust spending proportionately.  This plan would protect the vitality of our facility.  The plan still needed to be accepted by the stakeholders.  The Board President asked me to present the budget at the annual meeting.

I relished the opportunity to address my membership and be able to communicate our staff’s willingness to be a team player and be proactive in our approach to solve the problem.  I gave a brief history of the course including a financial analysis of past capital expenditures and our current infrastructure status.  I could not promise that budget reductions would not affect the quality and playability of the course.  But, I did promise them value.  We will continually be looking for ways to become more efficient and sustain the highest level of expectations.  I used two analogies to help illustrate our philosophies.

Five-Star Restaurants
What are the determinants of a five-star restaurant designation?  Multiple people providing constant attention to service and detail.  The atmosphere is special and you are pampered.  The presentation of your meal selection is orchestrated and colorful.  Even your wine selection is unlimited and well dramatized.  And the price is reflective of that service.

Now consider the three-star restaurant.  Your table may not overlook a breathtaking view.  Your waiter may multi-task by serving your water, taking your food order, and might even clear the table after you leave.  However, your meal may be as good as or better than the five-star!  I emphasized to my stakeholders that we are not a five-star golf course, but that does not diminish the quality, conditioning, and playability of our course.  Our course may exceed those attributes on many of the more expensive facilities.

Disneyland Service
Have you ever wondered how many people are employed at the Disney theme parks?  Cleanliness and service is paramount at Disney.  If you accidentally dropped a candy wrapper it might be retrieved by a sanitation team member before it reaches the ground!  I emphasized to my members that I cannot have staff following them around to pick up their litter…but my staff will pick up litter as we pass.

The current economic state is challenging us…..but it also gives us the opportunity to excel in our management.  We must learn to prioritize and create the best value for the resources we are entrusted.  Not only do we need to undertake an economic evaluation of our facility, but we also need to do a personal assessment.  The times require us to have a positive attitude….a can-do attitude.  Even a simple smile can be contagious and foster trusting relationships and develop confidence.

We are being forced to evolve to a new business environment.  We do not know what lies ahead.  These “icky” times will bring out the best or worst in facility leadership. Golf course management of tomorrow may not be anything like it is today.  But with the right attitude, creative ideas, innovative solutions, willpower, and persistence we will see a brighter tomorrow.  Embrace the challenge!