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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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24
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.
IMAGE
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
