Old Palm Golf Club - Vision 2025

P R I VAT E C L U B P L A N N E R S & C O N S U LTA N T S ®

VISION 2025 OLD PALM GOLF CLUB

Palm Beach Gardens, Florida February, 2020

Version 1 - DRAFT

McMahon Group, Inc. 670 Mason Ridge Center Drive • Suite 220 St. Louis, MO 63141 314.744.5040 McMahonGroup.com PREPARED BY:

T H E S O U R C E F O R P R I V A T E C L U B E X C E L L E N C E ™

Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

BOARD

Anthony Nugent (Tony), President Larry Guli Nancy Haviland Johnny LaPonzina Mike Lorenz

EX-OFF ICIO

Darlene J. Impellittiere, CCM General Manager

Frank Vain, President McMahon Group, Inc.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

INTRODUCT ION

Old Palm Golf Club is a premier golf and social club in the beautiful Old Palm residential development. Since assuming control of the Club in the fall of 2019, the leadership has been working to clarify the Club’s strategy and operating model to assure its success. The Club has many wonderful assets, has a strong financial position, is led by an excellent and dedicated staff and is supported by favorable trends in lifestyles. It is comprised of members who love the Club and are highly committed to recruit their friends and families to become members. The purpose of the Strategic Plan is to serve as a roadmap to guide current and future leaders in their efforts to preserve and enhance the Club. It is the plan to inform action plans in key areas. The Board and management have invested considerable time and effort in the development of this plan. We carried out a comprehensive survey of the membership to identify the degree of member satisfaction with existing facilities, programs and services, as well as perceived future desires and goals. We met with industry experts to understand the private club environment today and the trends likely to impact us in the future, and to review how other premier clubs are addressing these trends. We also conducted a comprehensive assessment of the strengths and weaknesses of our Club and identified the opportunities ahead of us and the threats we need to counter. Based on this information, the Board identified the key issues we are facing or may face in the next several years and outlined potential actions for how we would utilize our strengths to capitalize on the opportunities open to our Club so we can attract and retain members that appreciate the quiet elegance and premier aspirations of our wonderful club and community. The Board and management have accomplished a lot since assuming control of the Club in October 2019. Major initiatives include:  Completed the turnover, including final financial reconciliation to achieve member-controlled status.  Developed the 2020 operating and capital budget.  Resolved and instituted reimbursement plan for member legal & turnover contributions.  Completed a financial analysis that resulted in significant reduction in 2020 dues.  Formed Club Committees, which include over 10% of membership.  Interviewed and retained professional advisors for legal, accounting and other departments.  Completed a comprehensive member survey to measure satisfaction and future needs.  Completed long-term Strategic Plan, including new Vision and Mission statements, to set our direction and guide our investments over the next few years.  Formed a Long-Range Planning Committee to develop specific solutions resulting from research and member survey feedback.  Ongoing response to the Coronavirus pandemic including Club activity restrictions, varying financial scenarios, member food service support and focus on well-being of our employees. We look forward to continued progress in the year ahead, with a strong focus on an ever-improving member experience and developing plans to our long range plan. As you will see in the Strategic Plan, we are committed to engaging with the membership throughout this process. Respectfully, The Board of Directors  Revised bylaws and held successful membership approval vote.  Completed reviews and new compensation plans for senior staff.  Developed and approved renovation plan for practice facility.  Developed first draft of options for golf course renovation.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART I.

MISSION AND VISION

The Vision Statement identifies what Old Palm Golf Club will aspire to become in the future. It serves as the basis for the evaluation of the existing situation and the development of the strategies and action items. The Mission reflects the core attributes of why the Club exists and how it will support our members’ lifestyles.

Strategic Plan Dashboard: Old Palm Golf Club

“To create life experiences beyond expectations.”

Vision

• Old Palm will continue to be an outstanding golf and social club. • Our small, intimate membership enjoys a special golf experience in one of the country’s premier golf communities. • The elegant, attractive and well-maintained facilities will be favorite gathering places for members to enjoy a wide range of culinary and memorable experiences. • A broad range of social, wellness and recreational programs foster a spirit of camaraderie and conviviality among the membership. • Our friendly, well-trained and professional staff remains committed to service excellence and the creation of memorable experiences. • Members are continually engaged in the club’s success, providing their time and resources to achieve our Vision.

Mission

Core Values (How We Behave)  Conviviality and camaraderie.  Welcoming.  An atmosphere of quiet elegance.  Building lasting friendships.  Intimate club atmosphere.  Concierge services.

Where We Will Play (Our Target Market)

How We Will Win (Competitive Advantages)

Strategic Initiatives (Guiding Principles)

 Golfers seeking a special golf experience in a premier community.  People attracted to the intimate, quiet elegance of Old Palm.  Seekers of life experiences.  Culinarians and wine enthusiasts.

 A safe and secure environment.  An outstanding golf course and golf program.  An elegant,

 Master facilities enhancement plans.  Exceptional member programs and engagement.  Funding our future.  Cohesive membership and marketing plan.  Communications to drive engagement.  Responsive governance and leadership.

reimagined clubhouse.

 Become the

membership’s favorite place to socialize and dine.

 Offer a complete fitness and wellness experience.  Exceptional service

and curated experiences.  Personalized

communications to enhance use and drive engagement.  New separate casual dining/pub facility.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART II.

EXISTING SI TUAT ION

The Board identified the following Strengths, Weaknesses, Threats and Opportunities for Old Palm Golf Club. Club Strengths (An asset, practice, or situation that creates a competitive advantage or supports our Mission): Club Weaknesses (A deficiency of the Club that creates a competitive disadvantage or prevents us from achieving our Vision):

 Small, intimate membership.  Welcoming/camaraderie of membership.  Broad interests and backgrounds of our membership.  Personal service from a staff dedicated to excellence.  Member friendly golf course and playing experience.  Excellent practice facilities, including our regulation practice holes.  Differentiated/special experiences.  Members’ passion for the Club.  Committed leadership and management.  Membership’s trust in leadership.  Food and beverage program.  Safety and security of Old Palm.  Location.  Beautiful property.

 Aging facilities, especially the clubhouse and fitness center.  Lack of a bar and casual dining area.  Age of the golf course and practice facilities.  Member feedback and communication – no system to regularly collect member feedback and to build awareness and engagement.  Staff organization chart relative to evolving and expanded programming and events.  Value for cost perception.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART II.

EXIST ING SITUAT ION (continued)

Club Threats (Largely external issues that we must monitor for their impact on our long- term plans):  Economic downturn/drop in stock market.  Failure to address our aging infrastructure.  Weak real estate market/no new home construction.  Failure to modernize or execute a renovation program.  Adverse changes to tax laws.  Poor result from HOA litigation.  Losing top leadership team.  Declining interest in golf in society.  Failure to be thoughtful and inclusive with members in major, expensive decisions.  Get off track/lose clarity of purpose.  Not staying on top of club industry, culinary, golf course and technology trends.

Club Opportunities (An area where the Club can improve satisfaction or its competitive position):  Develop master plans to guide phased improvements to the facilities and golf course.  Develop a pub/gathering spot and casual dining venue to respond to members’ survey feedback.  Upgrade the Men’s Grill.  Improve the golf course, especially the green complexes and bunkers.  Identify and follow a governance model that creates alignment towards our vision.  Align the organization chart with the scope of operations and programming.  Develop a communications plans and make better use of technology to increase engagement.  Grow revenue and initiation fees through increased engagement.  Create a compelling offering for the next generation of members.  Develop cohesive membership plan and marketing strategy.  Expand the social activities and concierge program.  Improve the golf experience through better service and improved programming.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART I I I .

STRATEGIC INI T IAT IVES

Based on their review of industry and local conditions and internal data on membership, the Board identified the following issues as the strategic initiatives that Old Palm will need to address in the future to fulfill the vision of providing exceptional experiences:  Master Facilities Enhancement Plans o Develop master plans for the golf course, clubhouse and recreational amenities to support our Mission as an outstanding golf and social club. Engage the membership in the process of reviewing, refining and prioritizing the plans to assure they are responsive to our needs and to generate strong support for implementation.

 Exceptional Member Programs

o Continue to provide exceptional programs that create life experiences beyond expectations.

 Funding Our Future o Develop and communicate to members a plan for managing our resources to fund annual operations, annual maintenance and major repairs and periodic facility improvements while maintaining high perceived value among our membership.  Cohesive Membership and Marketing Plan o Insure a financially viable club by developing an external marketing and communications strategy.  Communications to Drive Engagement o Upgrade and contemporize all internal and external communications to drive engagement among our members and to maintain a positive image of our brand among leading clubs and communities.  Responsive Governance and Management o We are committed to having a governing Board, effective Committees and professional operating management as the organizational approach best suited to accomplishing our long-term goals. Our management team is effective, flexible and agile and populated with strong leaders in key areas, working together to adapt and respond to the varied desires of our membership segments and the continually changing nature of our business.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUTIONS TO ADDRESS CHALLENGES

Strategic Initiative: Master Facilities Enhancement Plan Develop master plans for the golf course, clubhouse and recreational amenities to support our Mission as an outstanding golf and social club. Engage the membership in the process of reviewing, refining and prioritizing the plans to assure they are responsive to our needs and to generate strong support for implementation. Strategies:  Create a comprehensive vision for the Club’s facilities to promote orderly and cost-effective development.  Provide elegant, attractive facilities that are favorite gathering places for members.  Deliver an exceptional community golf course experience.  Supply the facilities required to provide exceptional social, wellness and other recreational experiences.  Increase satisfaction by responding to member requests identified in the member survey. Action Plans:  Club Facilities: Develop and implement a phased master plan to improve and upgrade the clubhouse and facilities: o Form a Planning Committee comprised of club leaders and at-large members representing a cross-section of the membership to direct the planning process. o Retain the services of an experienced club planning/project management firm to work with the Committee to identify the program of required spaces, explore options and identify costs and develop a solution for improving the facilities. o Address member survey feedback:  Provide a larger bar/social area separate from the member dining areas to encourage gathering and socializing.  Provide a great indoor/outdoor casual dining facility.  Expand and upgrade the fitness facilities.  Increase the size and improve the appearance of the outdoor terraces.  Create a casual “grab and go” outlet for coffees, smoothies and chef-prepared items.  Improve the ladies’ locker room and spa. o Identify the top priority projects that fit within the financial model, including funding options for individual members.  Golf Course: Develop and implement a phased golf course master plan to restore and upgrade the golf course. o The 10-person Golf Committee represents diverse perspectives and is assisted by an experience professional staff. The Committee will continue to work with the Club’s golf course architect to develop the master plan for the golf course. o The architect and Committee will communicate the plan to the membership to create understanding and generate support for implementation. Upon Board authorization, the plan will move ahead.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES - Strategic Initiative: Master Facilities Enhancement Plan ( cont i nued )

 Once the plans are developed and supported by a financial plan, socialize them with the membership to generate support for implementing the plans. This should include a formal feedback loop to be sure the membership is engaged and supportive of these major and costly initiatives. Responsible: Long Range Planning Committee Golf Committee Board of Directors Timing: March – October 2020: Organize Planning Committee and professional team, develop program, review options, identify solution and financial strategy. Work in parallel with the Golf Committee. November 2020 – January 2021: Communicate the plans to members, seek and incorporate feedback and vote on recommended plans.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES ( cont i nued )

Strategic Initiative: Exceptional Member Programs Continue to provide exceptional programs that create life experiences beyond expectations. Strategies:  Offer relevant and engaging programming.  Encourage interaction among our interesting and welcoming membership.  Make the Club the members’ favorite gathering place.  Support members’ pursuit of fitness, wellness and healthy lifestyles.  Build year-round use and value.  Assure members are well-informed about our programs and activities. Action Plans:  Continue to provide high quality and consistently presented food and beverages supported by friendly, professional service so that Old Palm is one of the membership’s favorite places to socialize and dine.  Refresh menu to better communicate/highlight varying food options.  Address member survey feedback on what would cause them to dine at the Club more frequently, including: o More value priced menu options, and o Theme dinners or international cuisine.  Wine Program: Review and revise the Club’s wine program to increase engagement, leverage the significant interest in wines and increase members’ perception of value in this program. Potentially, offer wine for sale to members through the Club (compliance with State law).  Casual Dining: While awaiting development of the new bar and casual dining venue that will be part of the Facilities Enhancement Plan, explore ways through programming and periodic policy modifications to meet member expectations for a casual dining experience and more relaxed dress in select areas.  Concierge Services: Formalize and more effectively communicate the Club’s concierge services in support of the vision of supplying extraordinary experiences. This could include special activities and social events at the Club, opportunities to attend special events in Palm Beach County, golf and other trips and other curated experiences.  Expand the organization chart to include a Program Director to oversee and regularly update member programs. Responsible: General Manager and Program Director in place by end of 2020 Timing: Experience Improvement: Ongoing o More diversity on the menu, o Small plate menu options, o Very casual grab and go foods, o More healthy/vegetarian options,

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES ( cont i nued )

Strategic Initiative: Funding Our Future Develop and communicate to members a plan for managing our resources to fund annual operations, annual maintenance and major repairs and a transformative facility improvement while maintaining high perceived value among our membership. Strategies:  Increase leadership’s focus on generating capital to maintain and enhance facilities.  Increase members’ understanding of the Club’s financial requirements by communicating to them in a clear way the Club’s financial position and the future allocation of long-term capital.  Identify methods and plans for generating funds for enhancing the clubhouse and golf course. Action Plans:  The Finance Committee should complete a comprehensive review of the Club’s financial model to assure it is responsive to the changing nature of clubs and the funding requirements it will face in the next decade. Among other activities, consider: o Rolling Operating Forecast: Develop a rolling five-year forecast to identify operating costs and dues requirements and identify steps to maintain perceived value. o Capital Reserve Study: Complete a useful life study to identify the average amount the Club should fund each year for major capital repair and replacement. o Member Forecast: Project the number of turns the Club will need to fund capital requirements. Work with the Membership Committee to determine the likelihood the new member pipeline will support these needs. Consider other sources of funds, like a capital fee for existing members. Consider restructuring the transfer fee to support capital funding requirements. o Master Plan Funding: Work with the Long-Range Planning Committee to understand the expected cost for the highest priority improvement projects coming from the master plan studies and identify ways to fund these from traditional sources like assessments and debt service allocated across the membership.

Responsible: Finance Committee to develop the financial model.

Long Range Planning Committee to develop Facility Enhancement Plan.

Timing:

Coordinate with Planning Committee

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES ( cont i nued )

Strategic Initiative: Cohesive Membership and Marketing Plan Insure a financially viable club by developing an external marketing and communications strategy. Strategies:  Insure a financially viable club.  Preserve the intimate atmosphere of Old Palm.

 Continue to have an interesting and engaged membership.  Enroll members in the process of new member attraction. Action Plans:

 Develop a comprehensive external marketing plan.

 Review capacity, access and operating and capital requirements to identify the optimal number of full members required to maintain the quality of the experience at an appropriate value.  Increase the number of members involved in membership development efforts, especially newer members who are more closely connected to prospective members.  Consider forming a Membership Committee/influencer/ambassador program to include more members in the membership development process.  Improve the onboarding process so new members quickly become assimilated and engaged in the Club. Responsible: Board and General Manager/Membership Director Timing: Ongoing

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES ( cont i nued )

Strategic Initiative: Communications to Drive Engagement Upgrade and contemporize all internal and external communications to drive engagement among our members and to maintain a positive image of our brand among leading clubs and communities. Strategies:  Develop and maintain a well-informed membership.  Increase use and participation.

 Promote engagement in our life enhancing programs.  Maintain a positive club and community brand image.  Create alignment among our membership.  Involve the membership in key decisions. Action Plans:  Upgrade the Club’s communications with all stakeholders:

o Assign a Board member to oversee a communications plan for the Club. o Assign a staff person to be responsible for executing the communications plan for all communications. o Create a written communications plan that identifies the overall strategy, method and frequency for producing content for internal business and marketing aspects of the Club and external member development communications. o Utilize the full range of communication tools available to ensure that the membership and prospective members are informed and engaged in the Club. o Make greater use of social media to drive awareness of club membership, events and usage. o Periodically communicate the status and progress in implementing the strategic initiatives described in this plan and our status and progress in achieving our long-term goals. o Consider publishing quarterly reports to the membership focused solely on key policy and financial issues that the Board has considered or enacted over the prior quarter.

Responsible: Board Representative and Communications Director Timing: Ongoing

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

PART IV.

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES ( cont i nued )

Strategic Initiative: Responsive Governance and Management We are committed to having a governing Board, effective committees and professional operating management as the organizational approach best suited to accomplishing our long-term goals. Our management team is effective, flexible and agile, and populated with strong leaders in key areas, working together to adapt and respond to the varied desires of our membership segments and the continually changing nature of our business. Strategies:  Adopt and follow the Strategic Management Process: The Board will function as the strategic mission-driven body setting the Club’s direction. Operations will remain under the direction of a professional management team.  Attract and retain avid leaders with required skill sets to serve on the Board.  Have an effective Committee system.  Understand and respond to member desires.  Create openness and transparency through effective communications.  Align the organization chart to the scope and scale of our operations and programs. Action Plans:  Appoint a Board member to monitor the Club’s progress toward the strategic initiatives in the goal plan.  Develop a Board policy manual to memorialize the Club’s policies and procedures, guide the leadership’s actions and promote continuity among administrations.  Establish clear criteria and promote a Board selection process which leads to an effective Board that is representative of member interests and includes required skills sets. Service on Committees should be seen a pre-requisite to Board service.  New Board members should be given a thorough orientation to Board service, guidance on their interface with fellow members and key staff, and key club issues by the general manager and President.  Use the Strategic Plan as the basis for the monthly Board meeting agenda and handle as much routine work as possible through consent agendas.  The Board should prepare and annually update a goal plan through a goal setting session held shortly after the new Board members are seated; participants in this session should include retiring Board members for their outgoing insights.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

POTENT IAL SOLUT IONS TO ADDRESS CHALLENGES - Strategic Initiative:

PART IV.

Responsive Governance ( con t i nued )

 Establish clear roles and responsibilities for each Committee: o Encourage Committee Chairs to seek out a cross-section of the membership to serve on their Committee. o Identify a rotational system for populating Committees which promotes continuity as well as regularly introduces new members and ideas into the Committee system. o Make it the responsibility of all outgoing Committee Chairs to provide a transition report to the incoming Chair to preserve institutional knowledge and promote consistency. o Hold a Committee day at the outset of the Club year to brief them on the Club’s vision and Board’s goals so that the Committees are working in support of the key strategic issues.  Review the organization chart and staff plan to see that it is effective in supporting the expanded set of programs the Club offers. Have strong leaders over each department and involve them in development of the operating and communications plans.  Management will prepare an annual operating plan after participating in the Board’s goal planning session. This will identify the key initiatives for the coming year and make Board members aware of major issues for the new year.  Continue to provide written and electronic communication vehicles, hold town hall meetings and use other tools to communicate key governance, financial and strategic issues to the members.  Develop and publish a periodic Board report to help members understand and support: o The Club’s Mission and Vision. o Issues that the Board is working on. o Staff updates. o What’s going on at their Club. o Upcoming issues that are expected to impact the Club or the members, such as revisions to the membership plan or development of the facilities master plan. Responsible: Governance Review Task Force Timing: Ongoing  The Club will regularly survey the membership to track member satisfaction.

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Vision 2025 Strategic Plan   Old Palm Golf Club  March 2020 

IMPLEMENTAT ION GUIDANCE

 In order to realize the benefits of the Strategic Plan, it should be adopted by the Board as the official vision of the future and monitored regularly for progress toward the goals. As such, the following recommendations are made to ensure successful implementation of the Strategic Plan: o A member of the Board should be appointed to work with the general manager to monitor and implement the Strategic Plan and coordinate the activities of the executive staff, standing Committees and task forces working on the strategic initiatives. o Standing Committees should be briefed on the contents of the plan to provide greater organizational clarity and help marshal their efforts toward accomplishing the goals of the plan. o The Strategic Plan should be reviewed and discussed at the regular monthly Board meetings. Progress toward the goals of the plan should be reviewed and new goals established at an annual Board Retreat timed with changes in administrations. o The concept of strategic planning and highlights of the plan should be communicated to the membership. Periodically, progress toward the goals of the plan should also be communicated to the membership.

***END OF REPORT***

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