WORKSHOP - STRATEGIC INTELLIGENCE

Transcription

1 WORKSHOP - STRATEGIC INTELLIGENCE THE TOOLS TO DEVELOP AND SUCCESSFULLY IMPLMENT A STRATEGIC PLAN DOWNLOAD WORKSHOP GLOBALGOLFADVISORS.COM/CMAECONFERENCE

2 AGENDA TIME ACTIVITY 15:00 15:20 Introduction 15:20 16:15 Group Case Study Work 16:15 16:30 Development of Group Response 16:30 16:45 Group Case Study Presentation 16:45 17:00 Overview, SI Platform and Wrap 2

3 INTRODUCTION If every LEGO brick was stacked, they would form 10 separate towers from the earth to the moon. 3

4 INTRODUCTION In 1990, LEGO was one of the top 10 toy companies in the world. Sales had doubled every 5 years since Lego reacted to its declining sales with Lego theme parks, books, jewelry sets. The brand became diluted, their core audience less interested. In 2004, Lego faced bankruptcy with losses of 2.5billion KK. 4

5 INTRODUCTION Turnover EBITDA 5

6 INTRODUCTION 2003, New CEO Jørgen Vig Knudstorp ordered a strategic review of the entire business. Market Analysis Customer Analysis Operations Audit Branding & Communications Review Financial Analysis 6

7 GLOBALGOLFADVISORS.COM/CMAECONFERENCE INTRODUCTION A new strategy was defined working on a new vision, listening better to and understanding their customer, empowering their employees and introducing tight fiscal control. 7

8 Turnover EBITDA 8

9 Turnover EBITDA 9

10 Turnover EBITDA 10

11 Ten years on from initiating strategic planning process LEGO Turnover mdkk 35,780 (+397%) Turnover EBITDA Lego overtook Mattel and Hasbro to become the biggest and most profitable toy company in the world LEGO EBITDA mdkk 12,148 (from -1,498) 11

12 INTRODUCTION Managerial Leaders - primarily immersed in the day-to-day activities of the organization and lack an appropriate long-term vision for growth and change. Visionary Leaders - primarily future-oriented, proactive and risk-taking. These leaders base their decisions and actions on their beliefs and values. Jørgen Vig Knudstorp leadership style is what s referred to as Strategic Leadership Create, Communicate and Pursue a Clear Vision built on thorough research Maintain Short-Term Financial Stability Maintain a Smooth Operation 12

13 INTRODUCTION What kind of leader are you? Does your club have a plan? Is that Plan Informed by Intelligent Data? How well do you know your customers/members? How well do you know your local population? How well do you know your competitive environment? How well do you know your business - both its cost and revenue centres? Do you know how your club s performance relates to industry best practice? Just how much do you want success? The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark. Michelangelo 13

14 INTRODUCTION Global Golf Advisors Institute for Best Practice Study

15 INTRODUCTION What is Strategic Planning? Forward looking planning that contemplates new or unrevealed conditions, opportunities and challenges. Describes the Club s Vision Describes where the Club wishes to be in the future Describes how it intends to get there Strategy is NOT An annual operating budget. Projected capital expenses. Standard operating procedures. An Employee Handbook. A To Do List. 15

16 INTRODUCTION Why is Strategic Planning Important for a Club? Encourages a Board/Council to focus on Strategy and not tactics. A Destination. Informed decision-making. Performance-specific goals/objectives. Conversion of Strategic Plan into business plan. Continuous reference to/use of strategic plan. 16

17 INTRODUCTION 17

18 INTRODUCTION Today s Program: q Real-life case study will put club managers into the shoes of a GGA advisor. q Utilising problem-solving tools, intelligence resources and collaboration, participants will learn to apply best practices for developing a sound strategic plan. Effective leadership is putting first things first. Effective management is discipline, carrying it out. Stephen Covey American author, educator, businessman, and keynote speaker. 18

19 CASE STUDY Case Study Small historic golf club with an aging golf course, limited food and beverage, declining membership located within a major city market area. 19

20 SUMMARY OF KEY STRATEGIC COMPONENTS Vision / Mission Statements SWOT /SOAR Analysis Governance Market Analysis Communications / Marketing Plan Operations Capital Business Plan 20

21 VISION AND MISSION STATEMENTS What are they? The Vision/Mission statement is essential to a club s strategic and operating model. It typically defines the product offering and sets a general Standard of Excellence; i.e., a Family Club offering a level of service which meets or exceeds members expectations. The Mission statement may elaborate on the general Vision; i.e., the Best Family Club in a particular city. Are they appropriate? Do they conflict financial capabilities? Are any actions in conflict with Vision and Standard of Excellence, both in operations and capital maintenance? Are there processes at the club to insure the Vision and Standard of Excellence is maintained? Is the Vision/Mission Statement realistic, based on market research? 21

22 SWOT/SOAR ANALYSES What are they? SWOT = Strengths, Weaknesses, Opportunities, Threats SOAR = Strengths, Opportunities, Aspirations, Results SWOT and SOAR are a critical part of the situation analysis, where a club determines where it stands on four key strategic areas to better determine what changes to make. 22

23 GOVERNANCE Authority Club Governance Model Bylaws Board Policies Manual Operating Procedures Members Board GM Staff Board Committees Operations Committees Accountability 23

24 GLOBALGOLFADVISORS.COM/CMAECONFERENCE M A R K E T A N A LYS I S Internal Market Analysis External Market Analysis Member profile Mapping the Local Market Usage characteristics Demographic Profile Where members live Golf Supply & Demand Profile Psychographic analysis Psychographic Analysis Comprehensive Club Analysis Source-of-Origin Analysis 24

25 COMMUNICATIONS/MARKETING PLAN How far does your brand reach? Understand your target market and how to communicate effectively to them Customer Relationship Management Leads, Prospects, Conversion, KPIs Are website and social media channels helping the marketing efforts of the Club? Member Communication Strategy 25

26 OPERATIONS What s behind the numbers? Key Performance Indicators and ratios Utilization profiles Benchmark Analysis Evaluation of Revenue and Cost Centers Critique Budgetary Assumptions 26

27 CAPITAL Do you have a plan? Best performing clubs are proactive, not reactive. Are Capital decisions helping to maintain the Vision and Standard of Excellence? Capital Reserve Plan? Method of Funding Prioritize Capital requirements 27

28 BUSINESS PLAN Putting it all together Practical delivery of the Strategy Plan Goal defined and Measurable Tactical Action Plan Implementation and Tracking Strategies Position the Club for Future Success Should look 5 years ahead 28

29 CASE STUDY GROUP WORK 29

30 CASE STUDY PRESENTATION PREPARATION 30

31 GROUP CASE STUDY PRESENTATION GROUP PRESENTATIONS 31

32 CONCLUSION AND KEY LEARNINGS Where to Begin The steps to pursue in launching a strategic planning process. Analysis Reliance on appropriate and accurate data resources, the tools and process for effective data collection and analysis. Organisation of high-level financial data Measuring financial performance to best practices to understand the business and how well it is performing. Surveying the Membership Measuring member expectations, values and tolerances. Governance Applying governance principles and best practices to the strategic planning process. Presentation Formulating the recommended course of action and presentation for the Club board. 32

33 GLOBALGOLFADVISORS.COM/CMAECONFERENCE G G A S T R AT EG I C I N T E L L I G E N C E P L AT FO R M 33

34 GLOBALGOLFADVISORS.COM/CMAECONFERENCE T H E S T R AT E G I C P L A N N I N G E X P E R T S GGA (formerly KMPG Golf Industry Practice) is the largest consulting firm in the world dedicated to clubs and golf-related businesses. GGA provides advisory and support services to more than 2,900 clients worldwide from offices in Dublin (Ireland), Phoenix (USA), Sydney (Australia) and Toronto (Canada), specialising in strategic planning and intelligence, financial analysis and planning, membership analysis and planning, governance, and operational performance analysis. 34