Strategic Planning: Is it Really Worth It?

The private club industry is abuzz with talk of the continuous need to evolve to meet the ever-changing needs of members. New programs, re-imagined spaces, inventive services— there are numerous ways to brighten the appeal of a club membership for today’s modern member while continuing to respect history and traditions of the past.

But where are we going, exactly? What is the purpose or driving force behind these decisions? As clubs brainstorm new activities and reinvent the traditional private club experience, club leaders must first take pause to think about the bigger picture. What is our mission as a club? What do we hope the club will “be” in the future? And how do we get there?

SOME MAY SAY THERE IS A CLEAR ANSWER: STRATEGIC PLANNING.

But isn’t that for businesses and corporate entities? Can clubs really benefit from applying the same practices to the Chef’s dining program or the club’s membership categories?

DEFINING THE TERM

By definition, strategic planning is the process of defining an organization’s strategy and making decisions on how to allocate resources to pursue this direction. Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” One wouldn’t host Thanksgiving dinner without planning how to cook the turkey or coach a football team without planning a strategy for the big game.So why attempt to run a business without first establishing a plan?

Just as any successful business needs to define a purpose and direction, so too do private clubs. And while many do not think of their private clubs as “businesses” per say, they require similar strategies and management tactics to be successful. Strategic planning helps divide larger goals into smaller, more manageable pieces. Each piece then becomes a smaller goal that is easier to accomplish, yet still stays true to the bigger picture.

Before we delve into how to define goals and execute strategy in a private club, let’s first break down strategic planning to understand the pieces. There are six key elements of an effective strategic plan— the first three establish the general direction and create the foundation, while the second three help create a tangible plan to achieve the mission/vision.

MISSION: A mission statement is a concise explanation of an organization’s reason for existence. It answers the questions of Who are we? and Why do we exist? to define its purpose and overall intention.

VISION: A vision statement describes who or what an organization strives to be in the future. It establishes an overall direction or aspirational goal to work towards.

VALUES: An organization establishes a set of guiding principles to help define its culture and guide the perspective of its leadership and employees.

TENETS: Sometimes referred to as strategies or pillars; these are the major objectives an organization intends to achieve in order to reach its vision.

GOALS: These items convert the strategic tenets into specific and measurable performance targets corresponding to each overarching objective.

ACTION ITEMS: These specific statements describe operational tasks that explain how to achieve each goal.

In order for club leaders to be successful in strategic planning, the club experience must be evaluated holistically. Some of the most common tenets in private club strategic plans encompass topics such as governance, finances, membership, staff development, communications, facilities, and social/ recreational activities. Club leaders must then establish specific goals for how each aspect of the club experience can be enhanced—keeping the overall vision in mind at all times. To achieve these goals, clubs must develop a series of clear and actionable tactics grounded in the club’s core values.

SYNTHESIZING GOALS

There are two key ways strategic planning impact clubs. First—from a leadership and strategic thinking standpoint. “Each year, Boards change, committees change, and club Presidents change,” says Rick Snellinger, President and CEO of Chambers. “Though well intentioned, these groups often end up implementing a series of ‘projects’ year after year that address immediate needs without necessarily considering the bigger picture. A strategic plan can help establish a strategic mindset for club leadership to be sure decisions are always goal driven rather than agenda-driven.”

Jim Avato, Strategic Planning Chair at Rolling Green Golf Club (RGGC) in Philadelphia, is all too familiar with this concept. “Our Board and committees are comprised of very dedicated and hard-working members who really have the best interests of the club at heart, but we were dealing with projects, ideas, and needs as they arose,” he recalls. “While that was alright for the short-term, we realized we really needed a planning process that could help us focus our efforts. It’s easy to get sidetracked when dealing with unexpected issues that arise and pull you away from your strategic vision...”

INVOLVING THE MEMBERSHIP

In addition to helping club leaders embrace a strategic mindset, strategic planning is also extremely impactful for the membership. “There are two key strategic drivers in club planning—member retention and member recruitment,” says Snellinger. “Every decision that is made in a private club should ultimately be made with the member experience in mind... If a policy change or facility improvement will not positively impact one of these two strategic drivers, club leaders should question if it is really appropriate...” Snellinger advises.

AVOIDING COMMON PITFALLS

Strategic planning can (and should) be an exciting process for private clubs, but it isn’t a task to be taken lightly. Though there are many similarities to strategic planning in business, there is one critical difference—it’s personal. “The club is a member’s home away from home,” says Snellinger. “Members make multi-million dollar decisions every day in their professional careers, but it is different when Boards and committee members are making decisions that directly affect their family and friends.”

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