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GAME PLAN
IN THE
BHAG Henry DeLozier is a principal in the Global Golf Advisors
consultancy. DeLozier joined Global Golf Advisors in 2008 after
nine years as the vice president of golf for Pulte Homes. He is a
past president of the National Golf Course Owners Association’s
board of directors and serves on the PGA of America’s Employers
Advisory Council.
D o you have a BHAG? If you don’t, maybe you should. “BHAG” stands
for Big Hairy Audacious Goal; it’s an idea popularized in the business
bestseller Built to Last by James Collins and Jerry Porras. According
to the authors, a BHAG (the acronym is pronounced Bee Hag) is a
long-term goal that changes the very nature of a business’ existence.
Mowing all greens before 8 a.m. does not qualify as a BHAG; achieving the club’s
first top 100 course ranking most certainly does.
Here’s the story of a small club with a mighty BHAG. Over the last half cen-
tury, Westward Ho Country Club in Sioux Falls, S.D., earned a reputation for
family fun and friendship. But not long ago, the club found itself struggling as it
tried to retain members and service $2.4 million of debt. Westward Ho was in
trouble. Its BHAG? Staying in business. The decisions board members at “The
Ho” and their manager made are a case study for an inspiring turnaround. They
made five very smart decisions.
HIRE RIGHT, DREAM BIG
First, they recruited and hired an exceptional manager in Tim Walton. A PGA
member and trusted deputy at Bonita Bay Group, Walton saw opportunity
where others saw only problems. A “go bold or go home” kind of guy, Walton is
not afraid of BHAG’s – in fact, he relished the challenge he was presented.
In his first year at the club, Walton improved EBITDA to $750,000 by chang-
ing the scope of operations, which resulted in reduced labor costs, improved
costs of sales and enhanced productivity by the management staff.
“We changed the overall way we conducted business,” he says. That included
an attitude change: no more devaluing the product. “No more deals,” he an-
nounced as he eliminated the club’s $199 membership. He then went to work
improving quality and service, which allowed the club to reduce the part of its
budget normally set aside for giveaways to appease disgruntled members.
ELIMINATING DEBT OPENS NEW OPTIONS
Second, the club improved its operational performance, which allowed it to
reduce debt. This paved the way to planning a sorely needed clubhouse. Then,
the club introduced a $1,000 increase in joining fees with every eight member-
ships sold. In a rapidly expanding local economy, which was driven by banking
services and health-care companies, CCSF kept building momentum. Soon, the
club was able to secure new debt at a lower repayment rate. Plans for the new
clubhouse call for a 24-hour fitness center, comfortable lounge, new swimming
pool with a children’s splash-park and stylish banquet facilities.
10 NOVEMBER 2015 golfcourseindustry.com
BRANDING DECISION PROVES DIVISIVE
Next, “The Ho” needed a new
identity. But the idea of a new name
and visual identity was met with
resistance. But Walton felt it was the
right move and persisted. After a “no”
vote in June 2014, Walton and club
leaders (based on a branding study)
were successful in introducing a new
name (the Country Club of Sioux
Falls), along with a new logo, which
was later credited with a 60 percent
increase in merchandise sales.
SIMPLIFYING MEMBERSHIP
A fourth key decision involved
membership categories, which were
reduced from 15 to four. With such
positive momentum, CCSF produced
a net growth of 90 full memberships
over the past 18 months. Executive
and social memberships are sold out
and on a wait-list, which requires
members-in-waiting to join with
restricted access rights. Obviously,
improved service quality and new
facilities make a difference to existing
and prospective members.
INCREASE NON-MEMBER REVENUE
Incremental, non-member revenue
was the fifth element of the comeback
plan. CCSF now averages 13 to 15
wedding receptions annually. The
new facilities have generated 28 new
bookings for the coming 12 months.
The new and attractive clubhouse
amenities continue to extend the
growing reputation of the club.
LOOKING AHEAD TO A BRIGHT FUTURE
Today the club enjoys EBITDA in
excess of $1 million annually, which is
projected to increase to $1.25 million
by the end of fiscal year 2017. Maybe
the best part of the story: no assess-
ment to the membership
The Country Club of Sioux Falls is
an example of what can happen when
strong leadership commits to a vision
for excellence and has the courage to
turn a big, hairy, audacious goal into
reality.