Handling volatility through preparation

For more than a century, Boy Scouts have lived by a simple yet empowering motto: “Be Prepared.”

The Scout motto speaks to more than having the right gear when you show up; it emphasizes the need to be mentally and physically ready to improvise, solve problems and overcome adversity.

Given today’s volatile economic and political environment, golf course superintendents and managers might consider adopting the Scout’s motto as their own.

This year promises to be unlike others because of the uncertainty impacting global supply and sourcing in our increasingly interconnected world. This also makes them more vulnerable to unknown and unforeseen factors, including trade wars, political instability, geopolitical conflicts, natural disasters and the vagaries of Mother Nature. Consider these five steps, essential during times of volatility:

Check and double-check your supply chain. Your suppliers and vendors have the same uncertainty that you have. They are relying on others to fill their orders in a timely and reliable matter. You can relieve some of your anxiety by:

• Scheduling deliveries well in advance of your actual needs.
• Confirming each vendor’s supplies and suppliers, then checking with suppliers to verify the availability and timely delivery of your “must-have” resources.
• Communicating clearly, candidly and specifically regarding your needs and expectations.
• Setting “drop dead” terms and conditions with guarantees or penalties attached.
• Increasing and diversifying suppliers, especially in key categories, to enable a cushion of supply possibilities.

Check the weather forecast to assess your probable weather-related needs. The National Oceanic and Atmospheric Administration is a primary source of weather forecasts for North America. Monitor weather forecasts that will signal weeks or months in advance the supplies you may need. As an example, if NOAA predicts a wetter-and-warmer-than-usual summer, make sure you have adequate algaecide. On the other hand, if forecasts are more mild, adjust your supply chain accordingly.

Expect the unexpected and prepare accordingly. There are sure to be uncertainties. Identify your mission-critical needs and place redundant orders with more than one supplier. Your duty is to protect the best interests of your course and employer. Remember the sage advice of Bernard Baruch, the esteemed financier and statesman: “Buy straw hats in the wintertime. Summer will surely come.”

Negotiate terms to protect cash. Volatile and contentious markets favor cash. Conserve yours wherever and whenever possible. Three ways a superintendent can do so are:

• Ask for delayed terms that provide more time for your accounting office to use money advantageously. Collaborate with your controller or accounting manager to know how you can best negotiate for overall benefit.
• Focused on long-term needs while stockpiling and conserving hard-to-get resources.
• Reduce spending on non-essential supplies.

Communicate proactively with your golfers and fellow staff members. Do not sit quietly by, hoping that the next crisis will pass without incident. It probably won’t. Four strategies superintendents should adopt:

• Manage information up. Tell your board members or course owner exactly what your concerns and limitations may be. Eliminate surprises and the possible disappointments that demonstrate a lack of preparation.
• Confront market shifts and realities head-on. See that all who rely on you — vendors, suppliers, fellow managers and golfers — are aware of your needs and limitations.
• Engage your staff to identify their concerns and limitations. Ask for their advice and ways they can help. If one head is better than two, think how valuable 10 heads will be.
• Lead your team resolutely and with optimism. They need to see that you have planned ahead and are putting the plan in motion.

No one knows how the political and economic winds will blow, and the effects they will have on your business. But we can reasonably predict that one of the risks confronting golf and turf managers this summer will be an irregular supply of goods and services. Hopefully, you have heeded the Boy Scout motto and bought your straw hats.