Making Sense of Data and Analytics for Private Clubs€¦ · Lego overtook Mattel and Hasbro to...

Business Intelligence

CMAA 2018 WORLD CONFERENCE // SAN FRANCISCO// MARCH 4, 2018

Making Sense of Data and Analytics for Private Clubs

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Presenters

Rob Hill / PARTNERManages GGA EMEA office in Dublin.

Directs GGA’s Institute for Best Practice.Previously: Whitbread Plc, Marriott Hotels.

Derek Johnston / PARTNERManages GGA satellite office in San Fran.

Directs GGA’s Business Intelligence.Previously: Arthur Anderson, Deloitte.

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01 / GGA INTRODUCTIONOrigins. Reach. Client support. Expertise. Approach.

02 / SESSION INTRODUCTIONOverview. Learning Objectives.

03 / THE IMPACT OF GOOD INTELLIGENCEThe Lego Story.

Presentation Map

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04 / DEFINING BUSINESS INTELLIGENCEWhy is BI Important. What are we actually talking about.

05 / CURRENT LANDSCAPEThe state of Business Intelligence in Private Clubs.

06 / GETTING STARTEDA Framework

Presentation Map

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07 / INTELLIGENCE GATHERING What to Source and Track. Market. Membership. Operations.

08 / CONVERTING DATA TO INTELLIGENCEPutting your data to work

09 / TAKEAWAYSTakeaways. Insights. Applications. Questions.

Presentation Map

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Resource Libraryglobalgolfadvisors.com/wc18

Twitter@GlobalGolfAdvis

globalgolfadvisors.com/wc18

Conversations & Resources

GGA INTRODUCTION

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“Effective leadership is putting first things first.Effective management is discipline, carrying it out.”

GGA is a highly specialised consulting firm focused on golf, private club, real estate, and resort businesses.

// Stephen CoveyAuthor, educator, businessman, speaker

About

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Conduct strategic planning for clubs of all shapes/sizes around the world

Established in 1992 as KPMG Golf Industry Practice

Origins

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Leading golf industry insight from 4 global offices

Serving 2,900+ clients worldwide

Reach

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WE DO STRATEGYWE DO INSIGHT WE DO SUCCESS

GGA researches and shares best practices amongst theworld’s top performing golf clubs with a view to improvingperformance in an array of management disciplines.

Client Support

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05

0403

02

01 STRATEGIC BUSINESS PLANNING

GATHER DETAILED INFORMATION

UNDERSTAND CURRENT CIRCUMSTANCES

OBTAIN MEMBER/CONSUMER FEEDBACK

RECOMMENDATIONS

DEVELOP PLAN

Approach

SESSION INTRODUCTION

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Global data generation has skyrocketed in the last 15 years:

Up to 2003 – five exabytes

Today – five exabytes are collected every two days

Session Introduction

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Learning Objectives:

Define and classify the most important Business Intelligence for their club to track and analyze.

Implement appropriate tracking procedures to efficiently and effectively capture the data needed to analyze key business intelligence.

Analyze the most important categories of business intelligence to identify and capture key facts and trends impacting their club.

Present vital data and analytics in a meaningful way to each key stakeholder audience at their club.

Utilize data and analytics to support and inform fact based decision making amongst their management team and their board.

Session Introduction

THE IMPACT OF GOOD INTELLIGENCE

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If every LEGO brick was

stacked, they would form 10

separate towers from the earth to

the moon.

The Case of Lego

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In 1990, LEGO was one of the top 10 toy companies in the world. Sales had doubled every 5 years since 1975.

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.

The Case of Lego

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Turnover

EBITDA

The Case of Lego

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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

The Case of Lego

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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.

The Case of Lego

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Turnover

EBITDA

The Case of Lego

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23

Turnover

EBITDA

The Case of Lego

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Turnover

EBITDA

The Case of Lego

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Ten years on from initiating strategic planning process…

LEGO TurnovermDKK 35,780

(+397%)

LEGO EBITDA mDKK 12,148 (from -1,498)

Lego overtook Mattel and Hasbro to become the biggest and most profitable toy

company in the world

Turnover

EBITDA

The Case of Lego

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Inspiration

GGA believe that informed and intelligent planning increases likelihood of success.

Strategy relies upon intelligence.

DEFINING BUSINESS INTELLIGENCE

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Business Intelligence relies on the use of data to derive insights. An effective data strategy relies on understanding what you are trying to accomplish.

BUSINESS INTELLIGENCEOften Misunderstood | Definition is categorically imprecise.

Defining Business Intelligence

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Defining Business Intelligence

What is the primary type of BUSINESS INTELLIGENCE used at your club?

Financial and operating data is typically top of mind

93%93% of club managers reference financial and operating data as their primary type of business intelligence used at their club.

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Defining Business Intelligence

We encourage you to think

BIGGER!

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Defining Business Intelligence

Barriers for Clubs

TIMETime from senior executive team is required to set plan.

CULTUREData driven decision

making in clubs is not ingrained.

RESOURCESKnowledgeable resources are

required to execute plan.

COSTTime, resources and

technology all come with a cost.

Resist the Urge to ‘Throw-in the Towel’!

DATA TYPESInternal and external data

combined for unique insight.

DATA SOURCESData from multiple sources is

synthesized for analysis.

APPLICATIONExperience and

assumption is applied..

ENABLEDData acquisition and analysis is

enabled by technology..

Common Characteristics of BI in Corporate World

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Defining Business Intelligence

Key Business Driver:

MEMBERS

History

IMAGE

What we Know

- Who they are - Where they live - What they do for a

living - What their

preferences are- When they use the

club

Future

IMAGE

What we Wish we Knew

- Who they will be - Where they will

live - What will their

preferences be- What will they

spend- When will they use

the club

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Defining Business Intelligence

Business Intelligence and Analytics

A CONTINUUM

Descriptive Diagnostic Predictive Prescriptive

Business Intelligence Analytics

History Future

What happened? Why? What could happen? What do we do?

CURRENT LANDSCAPE

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Current Landscape

Descriptive Diagnostic Predictive Prescriptive

Business Intelligence Analytics

History Future

Business Intelligence is a relatively immature practice in clubs

CLUBS

Don’t let the concept of a continuum fool you, even the first few categories can be challenging to execute efficiently and effectively.

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Current Landscape

Current Sources of Data

Clubs predominantly rely on the following historic data for their BI Initiatives:

01MEMBERSHIP

02 OPERATING

03FINANCIAL DATA

59%

CLUB MANAGERSIndicate that they do not have an efficient

and effective method for regularly distilling financial and operating

performance reports to the various stakeholders at their club.

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Current Landscape

• Progressing at a rapid pace.

• New features and functionality to source and store new data.

• Dashboard builders.

• Drag and drop functionality.

• Access to all types of data contained in management system.

• Helping push clubs along the spectrum towards deeper analytics.

Technological Advancement in Clubs

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Current Landscape

Further Sources of Data

Use of market and competitive/comparable data is picking up speed:

CLUB MANAGERSIndicate that accurate competitive market data and useful comparable club data are

at the top of their business intelligence wish list.

73%

02COMPARABLE CLUB DATA

01COMPETITVE MARKET DATA

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Current Landscape

The good news: This is changing and poised to change rapidly over the coming years.

Who currently uses a BI solution to combine data sets from multiple operating

systems to generate KPIs?

CLUB MANAGERSUse a BI solution at their club to combine data sets from multiple

operating systems to generate key performance metrics.

Even fewer use a data warehouse for business intelligence purposes that is separate and distinct from their club management system

database.

7%

0%

20%

40%

Current 3 Years 5 Years

GGA Projected BI Solution Usage

GETTING STARTED

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Getting Started

What should your BI objectives be?

01 / INFORM KEY DECISION MAKERS Accurate. Timely. Actionable. Intelligence.

02 / IMPROVE PRODUCTIVITYEffectiveness. Board Meetings. Management Meetings.

03 / EFFICIENTLY ALIGN STRATEGYEvaluate. Develop. Adjust.

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Getting Started

04Put your mind to it and

leverage third party support to track information

03Let these questions form the basis of your BI requirements

02Develop a list of key questions

which you need answers to

01Start with your club’s strategic plan and overarching goals.

BI REQUIREMENTS

STRATEGIC PLAN

SOURCE INFORMATION

DEVELOP QUESTIONS?

Lead With Strategy

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Getting Started

Members

Board/Ownership

GM/COO/CEO

Management Team

Employees

Local and Regional Residents

Travelers

Competitor Clubs

Associations

Government

Regulatory Bodies

Businesses

Social Media

EXTERNALINTERNAL

Key Audiences:

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Getting Started

Most Important BI Categories

GOVERNANCE

MEMBERSHIP

MARKET

UTILIZATION

OPERATIONS

CAPITAL

FINANCE

INTELLIGENCE GATHERING

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Intelligence Gathering

External Data Sources

Population Data Web TrafficReal Estate Data Social Media Data News Outlets

General Ledger

Transaction

Register

Membership

Database

Customer

Relationship

Internal Data Sources

Reservation System

Survey Responses

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Intelligence Gathering

Be Mindful of Security and Data Storage.

Data breaches are a serious threat to your club.

Make security a critical element of any technological endeavor.

Data Storage

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Intelligence Gathering

If you can’t find it, you can’t mine it!

Data structure is critical

Poor structure makes finding helpful Business Intelligence year-over-year a

challenging and confusing task

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Track and monitor, consistency is crucial.

Key Intelligence Components

GOVERNANCE

IMAGE

Performance and trust in board• Self-assessment• Member feedback

Compliance with rules and regulations• Instances of member disciplinary action• Member payment delinquencies and

suspensions

Compliance with laws and regulations• Instances of non-compliance (workplace

safety, annual audit results, etc.)• Emerging issues and trends that may impact

your club

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Key Intelligence Components

MEMBERSHIPThe MOST Important Business Intelligence Category.

IMAGE

Satisfaction• Overall satisfaction and NPS• Member referral rate

Sales and Resignations• Leads and conversion rates• Net changes in memberships

Demographics• Total population of memberships• Average age and tenure

Impact• Net financial impact• Spending trends

3%

-4%

0%

-4%

1%

2%

-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0%

2013

2014

2015

2016

2017

2018B

% Change in Total Memberships from Year to Year

Fisca

l Yea

r

Net Annual Change in Total Memberships

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Key Intelligence Components

MARKETUnderstand Historic Patterns to Forecast the Future.

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General Demographics and Psychographics• Traits, preferences and trends• Source-of-origin• Projected changes • Past, present and future market to

membership overlay

Competition• Supply of clubs and market position• Key competitor strategy and brand• Membership categories, rules and regulations• Pricing and packaging• Marketing and communications

Mapping Competitors within 15 and 30 min.

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Key Intelligence Components

UTILIZATIONImportant measures of your club’s relevance to it’s members.

IMAGE

Utilization• Operating use statistics • Measurement of utilization versus capacity• Average spend per use measurements

Participation• Events and tournaments• Reservations and cancellations/no shows• Average spend per event and tournament• Net change in number of events

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Key Intelligence Components

OPERATIONSTrack dollar amounts, average growth rates and trends.

IMAGE

Profit and Loss• Revenue by department• Gross profit and gross margin• EBITDA and EBITDA Margin

Operational Feedback • Member AND Employee satisfaction,

engagement and experience• Ratings versus expectations

Amenity Access• Operating hours and offerings• Ratings versus expectations• Measurement of unfulfilled requests

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Key Intelligence Components

CAPITALEvaluate elements on an aggregate basis and per member.

IMAGE

Sources• Joining fees• Capital dues• Capital assessments• Annual funds available for capital

Uses• Repairs and replacements of existing assets• New capital improvements

Reserves• Capital reserve studies• Actual capital expenditures vs. reserve study• Capital expenditures as a % of Revenue• Capital expenditures vs. depreciation

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Key Intelligence Components

FINANCEFocus on options and outcomes.

IMAGE

Financing Options• Sources• Availability• Impact

Liquidity• Current ratio• Working capital• Quick ratio• Interest coverage ratio

Leverage• Debt to equity• Total debt per membership

CONVERTING DATA TO INTELLIGENCE

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Converting Data to Intelligence

• Online, secure business intelligence portal.

• User profiles to enable ALL key stakeholders at the club to access business intelligence from the same source.

• Filter data based on rolls.

• Prevent version control issues and document

storage issues.

Centralize It!

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Converting Data to Intelligence

• Plan and schedule regular, recurring, formal meetings with each key stakeholder group.

• Monthly, Quarterly, Semi-Annually and Annually.

• Like anything else, if it’s on the calendar, there is a higher likelihood of execution.

Schedule It!

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Converting Data to Intelligence

• Reference Your Intelligence During Every Strategic Discussion.

• Monitor Performance Against Targets, Trends and Peers Over Time.

• Review and discuss relevant BI and identify key takeaways and next steps.

Reference It!

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Converting Data to Intelligence

• Build, maintain, update and utilize a dynamic, forward looking model.

• Consider all key forces impacting success, both internal and external.

• Use these variables to define KPIs that go beyond dollars and cents to truly measure performance.

Model It Out!

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Converting Data to Intelligence

Turn Actionable Intelligence Into Strategies & TacticsCentralize Intelligence and Analysis in One Location

Plan and Coordinate Business Intelligence Meetings to Review KPIs

Reference Your Intelligence During Every Strategic Discussion

Monitor Performance Against Targets, Trends and Peers Over Time

Understand Cause and Effect

Build Scenarios and Refine Action Plans

TAKEAWAYS

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THE DIFFERENCE MAKERAn organization’s ability to identify meaningful and precise Business Intelligence amongst the growing clutter of available information.

Takeaways

Key ingredients for Dramatic Change and Transformation:

1) Lead with Strategy2) Systematic Approach3) Better Information4) Thorough Analysis5) Action

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Takeaways

QUESTIONS / DISCUSSION

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Lead with strategy.

Avoid getting too far into the weeds.

Seek help from third party vendors and providers.

Begin with existing internal data sources.

Initially focus on descriptive and diagnostic BI.

Define, track and set KPI targets that are aligned with your club's strategy

Develop a structured approach to assemble and trend critical business intelligence

Set up and schedule delivery of clean, crisp dashboards.

Layer in new internal and external data sources and analysis.

Build a dynamic financial and operating model.

Design key inputs and assumptions driving your club’s model.

Plan for the leap to predictive and prescriptive analytics.

Takeaways