Strategic Plan 2019 2025 - November 2018 The Island Golf Club
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The Island Golf Club Dublin, Ireland November 2018 Strategic Plan 2019 - 2025 GLOBAL GOLF ADVISORS EMEA Rob Hill, Partner Block 1, Newtown Business Park Newtownmountkennedy, Wicklow, Ireland globalgolfadvisors.com
The Island Golf Club
Strategic Plan 2019 - 2025
TABLE OF CONTENTS
I. INTRODUCTION ................................................................................................................................................................................................................................... 3
II. VISION AND MISSION ......................................................................................................................................................................................................................... 4
III. CORE VALUES .................................................................................................................................................................................................................................... 5
IV. STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS, ASPIRATIONS AND RESULTS ........................................................................................................................ 6
V. OVERVIEW OF MARKET ...................................................................................................................................................................................................................... 9
VI. STRATEGIC PILLARS ......................................................................................................................................................................................................................... 10
VII. 2019 TO 2025 STRATEGIC GOALS, SUGGESTED DIRECTIONS AND OPTIONS..................................................................................................................................... 12
IX. OVERVIEW OF FINANCIAL IMPACT .................................................................................................................................................................................................. 21
X. RESTRICTIONS .................................................................................................................................................................................................................................. 25
ATTACHMENTS
1. Market Analysis
2. Operational Review
3. Governance Review
4. Member Survey Reports
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I. INTRODUCTION
Founded in 1890, The Island Golf Club (“the Club” or “IGC” or “The Island”) is an 18-hole private members golf club, located amongst the dramatic dunes
of the Broadmeadow Estuary in Donabate, North County Dublin, Ireland. The golf course is heralded as amongst the finest links in Ireland (8 – 13 in National
Rankings) and is prized by members as the dominant special characteristic of the Club, by new members who cite it as the prime reason for joining the club,
and finally by those who visit from around the world.
In June 2018, on behalf of the members, the Council of The Island Golf Club engaged Global Golf Advisors (“GGA”) to execute a comprehensive strategic
planning process and ultimately develop a long-term Strategic Plan for the Club. The strategic planning process included; listening intently to members
initially through a Council retreat, and subsequently through a series of member interviews and focus groups; staff interviews; a comprehensive analysis of
existing market conditions; an evaluation of the Club’s operation against best practices; a review of governance structures and practices; a review of club
communications practices and resources; and finally GGA leveraged the findings of a Strategic Planning Survey (“Member Survey” or “Survey”), the results
of which were statistically representative of the membership at large.
The insights gathered from this extensive process were applied to inform a series of key strategic recommendations and business plan assumptions. These
recommendations are presented in six key areas of focus:
I. Capital and Finance;
II. Facilities;
III. Membership;
IV. Operations and Service;
V. Governance; and
VI. Marketing and Communications;
The recommendations were used to:
1. Set the strategic pillars for the Club to focus on over the next six years;
2. Outline the suggested directions and options for the Council to consider each year; and
3. Develop The Island’s action plan for 2019;
Measurable strategic objectives will be developed on an annual basis in support of the strategic pillars highlighted herein and will be informed by GGA’s
recommendations, suggested directions and options. A corresponding six-year Business Plan for the Club will adequately detail key assumptions, financial
estimates, membership changes and appropriately define the tactical steps that the Club must take in order to implement the defined strategy.
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II. VISION AND MISSION
By crafting clear Vision and Mission Statements, the Club powerfully communicates its ambitions and motivates its members and staff to realise a common
vision of the future. These Statements capture the key competitive advantages that the Club has over that of the competition.
These statements set the ‘Standards of Excellence’ for The Island and help to define its identity and purpose – what it hopes to achieve in the future. In
order to maintain these standards and unique identity, most clubs believe these statements need to be protected and followed in all actions taken by the
club. As such, club’s need to consider the effect that actions have on the defined ‘Standards of Excellence’.
Input for these Statements was garnered from a Council Strategy Retreat, Member Focus Groups, and the Survey. The research revealed several key
attributes that members believe should be integral to the Vision and Mission Statements. These are:
i. The golf course is our primary asset and is to be maintained and improved to standards consistent with the world’s best links (76% support).
ii. A club dedicated to providing a welcoming golf experience for all its members and visitors (73% support).
iii. Manage the Club’s affairs according to prudent financial operating standards (57% support).
iv. An affordable and sought-after membership experience, for which all members pay a fair annual subscription (53% support).
v. Consistent, courteous service provided by well trained staff (51% support).
vi. Caring for our environment (43% support).
Based on these inputs, the Proposed Vision Statement for The Island Golf Club is:
“The Island Golf Club will be a thriving club, home to a world-class links and an unrivalled welcome.”
Based on member feedback and other research and analysis, the Proposed Mission Statement will be:
“As stewards of one of the world’s great links, the membership of The Island Golf Club is committed to presenting its golf course to the
very highest standards, in a manner that is sensitive to the environment and enjoyable for all categories of player. The Club exists for the
enjoyment of all its members and those they invite to share it with, which it will achieve through outstanding, relevant experiences
delivered in an understated, fair and fiscally responsible manner.”
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III. CORE VALUES
The development of a Strategic Plan requires careful consideration of the Club’s core values.
This Plan reflects the standards and ambitions of The Island Golf Club that will set the Club apart from its competitive set. This premise drives the necessity
that the Club establish standards of excellence in its practices and services while cherishing what the membership deems of most importance to their
enjoyment of the Club.
Every aspect of the Club must meet a standard of excellence which is (1) superior to local and nearby competitors and (2) consistent with the expectations
and needs of the current and future membership.
The Island Golf Club will:
• Persistently make the golf course and golf services top priority and routinely excellent.
• Demonstrate respect for the game, our fellow members, our employees, our guests, our assets and our environment.
• Maintain a membership program that is sustainable, relevant and value for money.
• Communicate with members in a transparent and relevant manner.
• Capture and retain a membership that are willing to enjoy and support an excellent Club.
• Manage our affairs according to strong governance and prudent financial operating standards.
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IV. STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS, ASPIRATIONS AND RESULTS
The strategic planning process helped inform the analysis of Strengths, Weaknesses, Opportunities and Threats (“SWOT”) and Aspirations and Results
(“SOAR”) outlined below:
Table 1: Strengths, Weaknesses, Opportunities and Threats
Strengths Weaknesses
• Overall member satisfaction with the club is within benchmark range, • A lack of a sense of ‘unity’ amongst the membership.
while 87% of members indicate that the Club is meeting their • Low confidence and trust in the Club’s governance.
expectations. • There a significant reliance on the institutional memory of volunteers
• Overall member satisfaction with the golf course is within benchmark and Management, meaning that the club often loses knowledge and
range, while members indicate the golf course is the most prominent background to decision-making, when individuals complete their term of
influence on their reason to join and remain at the Club. office or the manager moves on from the club.
• Cost of belonging to The Island for a Full Member is priced favourably • Golf course and club operations staff numbers and resources are below
when compared to the competitive set. benchmark ranges, signalling an operation under pressure.
• Green Fee rates are appropriately positioned with some scope for • Divisive and inhibiting staff work environment.
growth if experience and facilities can be further improved. • The food and beverage environment and the overall quality of the F&B
• Positive Tour Operator relationships correlate to the quality of the golf experience at the Club is below expectations.
course, value for money, location and responsive/flexibility of Club • Access to the tee at weekends and holiday times is under pressure.
administration. • Inaccurate recording of golf course utilisation.
• Since 2016, the financial performance indicators of the club have • Subscription revenue per member was €944 (excluding Juniors) which is
improved dramatically, largely as a consequence of increased visitor 60% of the Full Subscription rate, indicating a high proportion of
and subscription revenues, stringent operational cost control, members are significantly under-paying for their membership.
appropriate capital maintenance investment and a growing capital • Locker rooms are not meeting member expectations.
reserve. • Lack of comprehensive Capital Reserve Study and Masterplan.
• Overall Pro Shop Ratings are strong. • Inconsistent joining fee policy.
• 94% of members would be willing to recommend the Club, which is a • Competitive team success has waned in recent years.
strong measurement of satisfaction and will serve as a powerful • The member and visitor experience are undefined and arbitrary.
referral and recruitment platform for new members. • Highly divided membership in relation to the existing Golf Course Master
• Members are broadly supportive of the current size of the membership Plan.
at The Island, and with the current level of visitor play.
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Opportunities Threats
• The wider environment and the preference of the membership (74%) • There is a large group of members between the age of 70-80 which are
indicates an opportunity for the amalgamation of the Men’s and likely to exit the club within the next 10-15 years.
Ladies’ Clubs, providing a foundation for a more unified club. • High level of full privileged members at the Club is placing pressure on
• Enhancement of Club Governance can deliver improvements to trust, access to the tee, particularly at peak times.
efficiency, operational performance and member engagement. • The Club is heavily reliant on green fee revenue (51.5% of total club
• Improvements to the Food and Beverage environment will have a revenues in 2017) to fund operations, capital maintenance and future
significant positive impact on member satisfaction and the likelihood facility improvements. A national and/or global economic downturn will
of the club meeting member expectations. likely have a considerable detrimental impact on this revenue source.
• Determine Standards of Excellence for the Member and Visitor • Lack of long-term capital and facilities master plan.
Experience. • Low member confidence in the Club’s governance performance will
• From a position of strength, the Golf Course quality can be further frustrate progress and hinder cohesive planning.
enhanced (in particular pathways, signage, bunkers and rough). • Modern lifestyles (time to play) impacting membership and
• There appears to be an overall trend toward a desire for fewer fourball participation.
and more Open and 9-Hole competitions. • Current staff environment will inhibit potential to recruit and retain
• Strong member support for programmes aimed at attracting more talent.
women (74%), young members (96%) and families (72%) to the Club. • Intermediate membership satisfaction is lower than the member
• Increase the average subscription rate per member by adjusting average, amplified by a higher than market average annual cost for over
discount structure, while protecting the clubs competitive pricing 25’s.
position. • Unreliable caddy programme, which is so important for Tour Operators,
• The introduction of a new short-course at the Club can contribute to may undermine confidence.
relieving pressure on access to the golf course, facilitate members with • A majority of members (55%) believes there is a problem with pace of
limited time, provide a fun alternative golf experience, bolster wider play.
family engagement, and add further value to membership. • Members ratings indicate the golf course is slightly too difficult, which
• Current interest rate environment may provide favourable terms for may impact future ability to attract and retain members.
the Club to take on new debt and complete needed capital • Tenured (long-standing) members may promote policies that risk
improvements. diminishing the relevance of the Club to future generations and
• Attracting and converting intermediate members to Full categories. consequently hinder the club’s long-term sustainability.
• Communication can be improved with existing and prospective
members, while there is significant scope for expanding the Club’s
brand reach nationally and globally.
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Table 2 – SOAR Analysis
Aspirations Results
• A golf course maintained and improved to standards consistent with • Member Golf Course Ratings in the top quartile of the benchmark range
the world’s best links. as measured through an annual survey.
• To be a unified and thriving club. • Consistently ranked amongst the world’s top 100 courses.
• Consistently delivering an unrivalled welcome to members and visitors. • Operating as one club with the golf program managed by the Captains’
Committees under the authority of the Council.
• Managing the Club’s affairs according to prudent financial operating
standards. • Governance performance score that is within benchmark range as
measured through an annual survey.
• Maintain amenities which are meeting the needs and expectations of
members. • Team success – at least one pennant success each year.
• Maintain a 12-month waiting list for all categories of membership.
• Member and visitor overall experience satisfaction ratings above
benchmark range, as surveyed periodically by the Club.
• Maintain a Capital Reserve balance of 2 x the annual maintenance
benchmark (approx. €250,000 based on 2017 gross revenue).
• Maintain a strong annual EBITDA performance, capable of funding
modest capital improvements based on current levels of visitor play and
an increase in the average subscription rate per member.
• Maintain membership and visitor rates that are competitive for the
local market.
• A masterplan that has the clear mandate of the membership.
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V. OVERVIEW OF MARKET
• The all-in cost of €1,580 (Joined pre-2010) and €1,795 (Joined post-2010) at The Island is positioned below the competitive set average for tenured
(long-standing) members and in line with the competitive set average of €1,743 for new members. Full membership subs in the competitive set range
from €900 to €2,500. A significant price gap exists in the market, with St. Anne’s being the only competitor club priced between €1,500 and €2,200.
This is favourable for IGC as it provides flexibility to increase rates in the future while still offering greater affordability than most high-end competitors.
• The Island charges the third highest entrance fee in the competitive set, which averages €5,914. Royal Dublin Golf Club and Portmarnock Golf Club
both charge an 8 x multiplier of annual peak subscriptions as the entrance fee, while The Island is 6.4 x annual peak subscription.
• Food and beverage annual levies are uncommon in the market, however, of those that do charge members a levy, they are higher than at The Island.
• Guest fees in the local market show a clear divide between top-tier facilities and second-tier competitor golf courses. The Island is appropriately
positioned within the top tier of golf facilities in the local market. Based on comparable value and feedback from tour operators, guest rates at The
Island are appropriately priced and have elasticity to increase if the Club can further enhance the auxiliary golf experience for guests.
• The Island and key competitors Portmarnock, Royal Dublin and County Louth have the lowest ratio of Full subs / Peak green fee, indicating a very
affordable membership cost that can be justified by even the ‘occasional golfer’.
• Average subs per full member equivalent (FME) at The Island is significantly lower than key competitors Portmarnock and Royal Dublin, indicative of
the discounted annual subscriptions that several member groups receive.
• The total annual cost of a 5-Day membership at IGC is priced above the average in the competitive set (€1,040). As a percentage of each Club’s
respective full membership, the average 5-day membership is priced at approximately two-thirds (66%) compared to 64% at IGC. However, several
competitors in the market do not offer a 5-Day membership. When considering the entire competitive set for a prospective 5-day member, the IGC
offering actually becomes more affordable than the competitive set average and is price-positioned appropriately.
• IGC has an opportunity to start offering an attractive program for members aged 30-40, which is traditionally the age cohort with the highest level of
resignation at the Club. The local competitive market for this age cohort is largely untapped and attracting more of these members will be critical to
replenish the membership pipeline as the aging members transition out of the Club.
• The local population in the area within a 30-minute drive of the Club is approximately 825K people. Relative to competitor clubs, The Island GC has a
lower population base when shrinking the radial area to a 10-minute drive. (immediate neighbourhoods surrounding the Club).
• The Island is one of the highest-rated courses on TripAdvisor and consistently recommended on tourism sites as one of the top courses near Dublin.
• An analysis of the current member roster indicates the average age at the Club is 58 and the average member has been at the Club for 23 years. There
is a large group of members between the age of 70-80 (approx. 185 members) which are likely to exit the club within the next 10-15 years.
Underutilisation is a key factor for an aging membership profile and will drive significant turnover in this group.
• The vast majority of Island GC members reside within the 30-minute drive radial of the Club. New members are increasingly being sourced from areas
in south Dublin, especially younger members.
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VI. STRATEGIC PILLARS
The Island Golf Club is committed to focus on the following six (6) strategic pillars in order to support the Club’s Vision and Mission over the next six years
– 2019 through 2025.
Vision
“The Island Golf Club will be a thriving club, home to a world-class links and an unrivalled welcome.”
Mission
“As stewards of one of the world’s great links, the membership of The Island Golf Club is committed to presenting its golf course to the
very highest standards, in a manner that is sensitive to the environment and enjoyable for all categories of player. The Club exists for the
enjoyment of all its members and those they invite to share it with, which it will achieve through outstanding, relevant experiences
delivered in an understated, fair and fiscally responsible manner.”
1. 2. 3. 4. 5. 6.
Prudent Improve Golfing, Bolster Strengthen Communicate
Financial & Facilities Hospitality & Membership Governance Effectively
Asset Operational
Management Excellence
The Club’s near-term and long-term strategic goals and objectives have been organised around these six (6) Strategic Pillars and detailed herein. A
description of each of The Island Golf Club’s Strategic Pillars follows:
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1. Prudent Financial and Asset Management
Appropriately capitalise the Club, protect the Club’s financial security, manage risk of high-reliance on green fee revenue and protect the condition
and standard of the Club’s assets.
2. Improve Facilities
Maintain and consistently improve the Club’s capital assets and amenity profile in order to maintain and enhance the Club’s good reputation, it’s
competitive market position, as well as member satisfaction, retention and rejuvenation.
3. Golfing, Hospitality and Operational Excellence
Optimise the operating profile of the Club with an emphasis on; the Club’s world class golf course; an excellent member and visitor experience;
continued prudent budget management; enhanced capability for monitoring and adjusting to member utilisation; and the establishment a staff
culture which is collaborative, supportive and ambitious.
4. Bolster Membership
Bolster the Membership Plan in order to protect the existing financial strength of the Club, maintain the Club’s competitive position for full
membership, provide opportunity for new entrants with attention to women, families and young members, and facilitate the transition of
Intermediate Members to Full categories.
5. Strengthen Governance
Pursue excellence in club governance and reporting to considerably improve transparency and trust in the Council, and establish business-like
systems, processes, and Council collaboration.
6. Effectively Communicate
Extend the brand reach of The Island Golf Club through consistent and continuous communication of key attributes in order to effectively reach
target markets and develop stronger awareness consistent with the best links golf clubs in the world.
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VII. 2019 TO 2025 STRATEGIC GOALS, SUGGESTED DIRECTIONS AND OPTIONS
The Council of The Island Golf Club is committed to pursuing strategic goals over the next six years – 2019 through 2025 – that are aligned with the strategic
pillars presented herein. The suggested directions and options outlined below have been developed through the comprehensive strategic planning process
undertaken by the Council, Management and GGA from June through to November 2018.
The Council will periodically review and evaluate these goals, directions and options with Management, at a minimum on an annual basis, in order to
identify the most appropriate strategic goals and objectives to be addressed for the year ahead. Consequently, Council with Management, will prepare a
progress report for the membership on the year past. Council will also prepare and agree an Annual Strategic Action Plan which will identify the actions
and desirable outcomes for the coming year.
This annual process of determining specific and measurable strategic objectives is considered of the utmost importance for the Club to remain current in
its thinking and to effectively adapt to changing economic, market and membership conditions.
1. Prudent Financial and Asset Management – Appropriately capitalise the Club, protect the Club’s financial security, manage risk of high-reliance
on green fee revenue and protect the condition and standard of the Club’s assets.
a. Continue to plan for and fund capital maintenance and develop a 20-year forward looking Capital Reserve Study.
b. Budget/plan to spend approximately 7% - 9% of gross revenue every year on capital maintenance, which equates to approximately €125,000
per annum based on 8% of 2017 gross operating revenue.
c. Maintain a Capital Reserve balance of 2 x the annual maintenance benchmark (approx. €250,000 based on 2017 gross revenue).
d. Capital maintenance should continue to be funded through an annual levy – currently labelled the ‘Development Levy’.
e. Leverage net operating income in future years to pay down debt or fund new capital expenditures. Safeguard the Club’s assets and only consider
changes that improve both operations and cash flow.
f. Similarly, joining fees should be maintained and used to reduce debt and fund any new capital expenditures. Based on the competitive market
analysis the current rate of €10,000 is appropriate. To reduce the barrier that the joining fee may present (perceived by 49% of members) and
increase value for money, new payment structures and added amenities should be introduced.
g. Members are broadly supportive of the current level of visitor play (7,000 – 7,500 rounds annually over the last 3 years), recognising the
contribution this makes to subsiding subscription rates and to capital reserves. The Club should plan to maintain the number of paid rounds
over the coming five years while adjusting rates upwards in line with inflation and when additional experience value is delivered.
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2. Improve Facilities - Maintain and consistently improve the Club’s capital assets and amenity profile in order to maintain and enhance the Club’s
good reputation, the Club’s competitive market position, as well as member satisfaction, retention and rejuvenation.
a. After capital maintenance is addressed and planned for, complete capital improvement projects as identified and prioritised to enhance current
and future member experience:
i. Develop a facility ‘Masterplan’ to ensure a cohesive and consistent amenities plan for the Club (course, clubhouse, practice and
maintenance).
i. A tender process should be completed for a medium to long-term golf course enhancement plan, which includes extensive
member consultation. Mackenzie Ebert should have the opportunity to participate in that process.
ii. A tender process should also be completed for a clubhouse renovation, again a process that should include extensive member
consultation. Considered in this plan should be;
- a renovation of the dining and bar area (specifically to improve the internal environment, the aspect of the golf course
and the introduction of outdoor space);
- a reconfiguration of the clubhouse to improve the member and visitor journey (welcome/arrival, shop experience,
storage, and relocation of administration space);
- improvements to the Locker Room and Shower Facilities (to include the addition of visitor lockers)
iii. The existing Maintenance Facility should be upgraded in line with best practice, in particular staff facilities.
ii. Plan for and develop a world-class short course at the Club to transform the Club’s ability to accommodate golfers of all abilities and
ages, in a fun and challenging environment, which can be played in less time than it takes to complete 9-holes and will provide a viable
alternative quality golf experience to the 18-hole links. Such a facility will require the club to secure the purchase or lease of additional
lands.
b. In addition to the prioritised capital projects above from the Member Survey, the Club will evaluate and may incur additional costs associated
with acquiring adjacent lands or those currently under lease with a view to securing the Club’s assets and adding potential new revenues or
amenities such as the short course outlined above.
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3. Golfing, Hospitality and Operational Excellence – Optimise the operating profile of the Club with an emphasis on; the Club’s world-class golf
course; an excellent member and visitor experience; continued prudent budget management; enhanced capability for monitoring and adjusting
to member utilisation; and establish a staff culture which is collaborative, supportive and ambitious.
a. Implement a program of categorical excellence – Services, amenities and experiences at The Island must be excellent in their execution. The
emphasis on an ‘unrivalled welcome’ for every member visitor experience will play a pivotal role in The Island standing out as exceptional
when matched against other fine clubs in its catchment area. ‘Welcome’ should refer to the entire experience and not be misconstrued as
simply relating to arrival. To achieve this element of the Club’s vision, the following should be considered;
i. A Golf Course Policy Document - shall be written and adopted as the measurement by which the golf course shall be managed,
maintained and presented. It shall clearly define the standards of excellence the Club is committed to meeting for its golf course, and
the policies, procedures, resources and key performance metrics it will apply in order to achieve and measure those standards.
ii. A Member Experience Policy - shall be written and adopted, identifying the goals for achieving an outstanding member experience,
and the consistent practices which the Club is committed to delivering in order to achieve those goals.
iii. A Visitor Experience Policy - shall be written and adopted, identifying the goals for achieving an outstanding visitor experience, and
the consistent practices which the Club is committed to delivering in order to achieve those goals.
iv. A measurement mechanism - will be introduced through which the club can monitor its performance and the impact of its policies.
This measurement can be applied to adjust policies so as they remain effective and inform future pricing policy.
b. Establish a positive and productive work environment in which staff are motivated to high performance and are appreciated for effort and
achievement. The team are and will continue to be a vital contributor to the Club’s future success. The Island will recognise and support this
contribution through the promotion of a positive work culture, a targeted training and development programme, and appreciation initiatives
aimed at providing an inspiring and rewarding work environment. To achieve this, the following should be considered;
i. A series of workshops, with both staff and member participation, aimed at determining the desired staff culture for The Island;
ii. Develop and implement a plan based on achieving the desired staff culture identified through the workshops, with a measurement
mechanism to monitor progress and impact;
iii. Develop a staff policy manual which defines staff roles, responsibilities, procedures and club policies;
iv. A staff performance review program lead by the department head (including outsourced) and supported by the General Manager;
v. Acknowledge and reward staff performance.
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c. Establish a method of consistently and accurately recording golf course utilisation with a view to improving access, pace of play and
membership planning.
d. The Member Survey indicates that the current operating model is largely meeting members’ expectations (87%) and no major changes are
required. To enhance operating performance further, the following should be considered:
i. Staffing – Labour costs and headcount are below or at the low-end of the benchmark range in 2017 for golf course maintenance and
clubhouse operations. Additional staffing resources are appropriate in support of efforts to achieve categorical excellence (3.a.). Such
appointments should be under the direction of the General Manager with support from the relevant head of department. It should be
noted that such additions would benefit from the Club firstly making sufficient progress with its work environment (3.b.).
ii. Course Maintenance – Overall the golf course is meeting member expectations. There are opportunities for improvements on
pathways, course signage, bunkers, rough and fairways.
iii. Enhance Food & Beverage - The F&B experience at The Island Golf Club is falling below member expectations. The Club should aim to
be ‘top of mind’ for all members and visitors when they visit. Capital investment in the refurbishment of the F&B amenities are also
likely to require a modest increase in the F&B levy – an increase that must be earned with improved satisfaction ratings. Satisfaction
therefore should be tracked closely with the application of a digital survey tool, and the franchisee rewarded for consistently achieving
key performance metrics aligned with these results.
The Club should also complete a feasibility and impact assessment of taking the F&B operation ‘in-house’, taking into account the
benchmark cost structure for comparable clubs is as follows:
o Cost of Sales as a percentage of Revenue – 37% to 40%
o Labour as a percentage of Revenue – 55% to 60%
o Other Operating Costs as a percentage of Revenue – 8% to 10%
o Overall – 100% (breakeven) to 110%
iv. Play Management – The member survey indicated three metrics that imply there is scope of improve the play experience for members
(low satisfaction with access to the tee; 55% indicating there is a pace of play problem; and a leaning toward the course being too
difficult). The Club will identify tactics to improve performance in these areas and will measure impact through the member survey.
These tactics may include; the deployment of a Marshal at times identified as troublesome; adjustments to time intervals; management
of rough; placing clocks on the course; recording round times to monitor trends; encouraging the use of appropriate tees; varying the
competition formats; and providing protocol/behaviour tips to golfers.
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e. Nurture Tour Operator Relationships – Tour operators demonstrate a preference for clubs that; are in demand from their clients; deliver value
for their business (margin); with which they have a collaborative working relationship; and can be relied upon to provide a consistently high
visitor experience. The Island will develop a Tour Operator Policy identifying its commitment to supporting these preferences and representing
the tactics it will undertake in support that commitment.
f. Environmental Stewardship – The Club will leverage its’ unique and special location, and the members desire to care for the Club’s environment
(43% supportive of its inclusion in the mission statement) to demonstrate its’ commitment to sustainability, environmental protection,
enhancement, research and education. As a minimum, The Island will participate in the GEO Foundation’s OnCourse Certification program as
supported by the R&A with a view to being GEO (Golf Environment Organisation) Certified by 2022.
g. The Club will establish a caddy policy and management programme which can provide a consistent and reliable supply of able caddies. In
support of this endeavour, the Club might explore the opportunity to establish an initiative similar to the successful Evans Scholarship
Foundation in the United States, in conjunction with compatible clubs such as Royal Dublin, Portmarnock Links and Portmarnock Golf Club.
4. Bolster Membership – Bolster the Membership Plan in order to protect the existing financial strength of the Club, maintain the Club’s
competitive position for full membership, provide opportunity for new entrants with attention to women, families and young members, and
facilitate the transition of Intermediate Members to Full categories.
a. Consider the following adjustments to the Membership Plan:
i. Subscription Rates - Develop a plan for increasing subscription rates at the pace of inflation or higher over the next five years.
ii. Legacy Programme - Introduce a legacy programme which will allow children or grandchildren of current full members to join as full
members of the club at a discounted entrance fee (50% off the prevailing entrance fee) in exchange for tenured (long-standing)
members transitioning to lower utilisation categories (5-Day). An annual cap can be placed on the numbers accepted under this
programme to protect the capital contribution from joining fees.
iii. Tweaks to Intermediate Membership - Based on the market analysis findings and industry norms, the Club has an opportunity to
increase the attractiveness of the Intermediate program with minor tweaks to the joining fee flexibility and annual cost levels.
i. Add a 30-34 age category, which is a rare offering in the competitive market. Societal norms today dictate that marriage,
homeownership and ultimately ‘settling down’ is increasingly occurring later in life (beyond age 30). Many millennials entering
this age group will still be attracted to short-term options and flexibility to defer an entrance fee commitment until they have
settled down in terms of career and family life.
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ii. Adjust subscriptions levels (including capital and F&B levies) to the following structure:
a. 30-34 – 80% of full ordinary member annual costs
b. 25-29 – 70% of full ordinary member annual costs
c. Under 25 – 50% of full ordinary member annual costs
iii. In addition to the credit received on full entrance fee for each year of tenure as an intermediate member provide members
provide members the option to join at age 30 at 75% of the prevailing entrance fee rate to help improve conversion rates and
replenishment of the membership pipeline in this key age range of historical resignations. Alternatively, they can continue to
receive credits towards the full rate at age 35.
iv. Family Membership - Implement a “Family Membership” entrance fee discount option for spouses.
i. 50% off of the full entrance fee for the spouse and pay a single F&B levy (50% higher than the current levy - € 100 in 2018)
ii. Maintain the add-on cost for each child at the ‘child-of-a-member’ rate.
iii. Enhance the opportunity for family / junior golf participation such as parent/child tournaments and family matches on the
short course.
v. Incentivising Female Membership - Create a female group trial program, offering a year of membership with discounted subscriptions
and a credit to the entrance fee for NEW females joining in a group of three or more. This program will allow women to test drive the
Club with a greater chance of enjoyment so as to not be intimidated by the male dominated demographic of existing members.
i. Promote group practice classes and ‘nine and dine’ events, which are both popular programs among women new to the game
and looking for a social experience.
b. While the total number of members at the Club is within benchmark range, the number of full member equivalents (FME’s) is below the target
range. Consider the following;
i. Adjust Discount Structured - Increase the average subscription rate per member by adjusting the current discount structure to include;
i. Increase the 65x20 age/tenure criteria for subscriptions discount to 70/25
ii. Decrease the 75/30 age/tenure discount rate from 80% to 60%
ii. Cap Discount Categories - Cap the number of members who can qualify for these age/tenure discounts, with a wait list being
determined by the sum of age and tenure for each membership. Members on the wait list still have the option to elect for a 5-day
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Strategic Plan 2019 - 2025
membership. The waitlist could be bypassed if the member can generate a legacy member for the club (child or grandchild) as
described above.
c. The Juvenile and Junior Programs at The Island are highly encouraged by the membership (96% of members believe it important the club make
an effort to attract more younger members) and rely on dedicated volunteers. The Club should consider;
i. review the appropriateness of its application policy;
ii. review how the clubhouse environment and rules can appropriately accommodate younger members;
iii. determine how coaching and play can be further enhanced; and
iv. determine what further resources can assist in the delivery of a superior experience for members aged between 8 and 18 years of age.
d. Competitions and Social Program – The social fabric of the club has relied on friendship-originated socialisation rather than club-organised
social gatherings. This appears to be largely a consequence of location. Overall members are satisfied with the number of competitions at the
Club (77% satisfied), although this should be consistently monitored. Guided by member feedback to further improve member satisfaction
here, the Club may consider:
i. Open Competitions – the introduction/expansion of an open competitions schedule and events that facilitate member-guest
participation.
ii. 9-hole Competitions – 9-hole golf has considerable support from the game’s governing bodies as a format for facilitating greater access
and participation. 9-hole Golf + Entertainment events such as ‘9 & Dine’ are of interest across the demographic spectrum and also
offer the opportunity to encourage greater mixed social occasions.
iii. New Member Induction - An induction program for new members to introduce and ‘on-board’ them as members to the club.
iv. Private Functions – Once the F&B renovation has been completed on the Clubhouse, the Club will be better positioned to
accommodate and promote private functions for members, supporting revenue generation and enhanced member value. This will rely
on improvements to the F&B experience identified in this plan.
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Strategic Plan 2019 - 2025
5. Strengthen Governance – Pursue excellence in Club governance and reporting to considerably improve transparency and trust in the Council,
and establish business-like systems, processes, and Council collaboration.
Trust in the Council and Council performance ratings are below industry benchmarks while members are especially concerned with transparency
and responsiveness. Nearly three quarters of respondents (74%) are in favour of amalgamating the current structure into one unified Club. Almost
nine in ten (86%) members agreed with the general concept that Council sets policy and evaluates operating performance, Management operates
the Club and Committees are advisory only.
a. Establish a Governance Task Force with specific tasks, deadlines and intended outcomes:
i. Prepare and execute a plan to communicate changes to the Club’s governance structure as a result of strong member support for the
amalgamation of the Men’s and Ladies Clubs at The Island (74%).
ii. Prepare and communicate a governance plan to reduce the number of Honorary Officers and the size of Council.
iii. Revise the organisational chart so the General Manager reports directly to the Council. (87% of survey respondents support this change)
iv. Develop, approve and adopt a Council Policy Manual (CPM).
v. Collect, organise and set up a Club Governance document repository as part of this process.
vi. Formalise and document an induction for Council and Club Committee members.
vii. Develop and adopt a Skills Matrix for nominating Council members.
viii. Develop, approve and follow protocols for each Club Committee consistent with the CPM. Protocols to include specific terms of
reference describing the Committee’s mandate, structure and authority. These should be reviewed annually.
b. The Council should evaluate its performance at each meeting and annually.
c. Management should present a Compliance Statement to the Council at regular defined intervals. A Club Risk Register is provided with the
Compliance Statement.
d. Continue to use a Consent Agenda at Council meetings. This is a Council meeting practice that groups routine business and reports into one
agenda item. The consent agenda can be approved in one action rather than filing motions on each item separately. This can significantly
improve the efficiency of Council meetings.
e. Introduce a document that prescribes a commitment to serve, confidentiality and conflict of interest statement signed by Council members
annually.
f. Develop policies and procedures for General Manager’s goals, monitoring and performance and annual review in the CPM.
g. Introduce and utilise electronic notice of meetings and voting.
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Strategic Plan 2019 - 2025
6. Improve Communications, Marketing and Brand Awareness – Extend the brand reach of The Island Golf Club through consistent and continuous
communication of key attributes in order to effectively reach target markets and develop stronger awareness consistent with the best links golf
clubs in the world.
a. The Club currently performs well in meeting members’ communication expectations. Continue to leverage digital platforms such as the online
and emailed version of the Club newsletter, website and clubhouse noticeboards for regular and personalised communication on golf course
news, Club and social events, member services, and achievements. In addition:
i. Enable members to direct their communication preferences (platforms, content and frequency).
ii. Examine the prospect for a dedicated internal social network for the Club, perhaps through a dedicated Club App.
iii. Advance the membership’s understanding of Club Bylaws and Policies, Council and Management activity.
iv. Clubs are governed successfully when a large percentage of members understand how the Council, Club Committees and Staff work
together to serve the Club’s Mission, Vision and Values. Determine effective methods of two-way communication with the membership
to enhance their understanding of such efforts and improve their sense of access to the Club’s Governance.
b. Develop a communication plan to educate members on the Strategic Plan and its implementation.
c. Increase staff hours and the resource investment for marketing and communications to benchmark levels for similar clubs.
d. When appropriate, provide all members with a ‘digital referral pack’ for new membership categories which can be easily shared to inspire
enquiries.
e. Introduce ‘passionate golfers’ events throughout the year for member’s guests and visitors by way of exposing prospective members to the
club and providing members with the opportunity to show-off their club to friends, families, clients and colleagues.
f. Implement the marketing and communication recommendations provided by GGA as a result of the marketing review (separate document).
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Strategic Plan 2019 - 2025
IX. OVERVIEW OF FINANCIAL IMPACT
The following projections illustrate the impact of Strategic Plan recommendations and are supported by the Market Analysis, Operational Review, Member
Survey and Management meetings and discussions. Seven-year projections are summarised in the following Table:
Table 4: Summary Financial Projections (€)
2018 Act. 2019 Proj. 2020 Proj. 2021 Proj. 2022 Proj. 2023 Proj. 2024 Proj. 2025 Proj. Trend
Revenues
Subs. Income € 691,936 € 742,891 € 798,100 € 832,383 € 857,355 € 883,075 € 909,568 € 936,855
Golf Operations € 830,639 € 872,392 € 898,564 € 925,521 € 953,286 € 981,885 € 1,011,341 € 1,041,682
Other Revenue € 26,621 € 27,153 € 27,696 € 28,250 € 28,815 € 29,392 € 29,980 € 30,579
Gross Operating Revenue € 1,549,196 € 1,642,436 € 1,724,360 € 1,786,154 € 1,839,457 € 1,894,352 € 1,950,889 € 2,009,116
Expenses
Golf Operations € 76,318 € 77,844 € 79,401 € 80,989 € 82,609 € 84,261 € 85,946 € 87,665
Course Maintenance € 681,238 € 732,736 € 749,619 € 766,895 € 784,573 € 802,664 € 821,176 € 840,120
Administration € 346,893 € 385,417 € 394,240 € 403,266 € 412,501 € 421,951 € 431,619 € 441,512
Clubhouse € 196,756 € 200,691 € 204,705 € 208,799 € 212,975 € 217,235 € 221,579 € 226,011
Other Expenses € 16,266 € 16,591 € 16,923 € 17,262 € 17,607 € 17,959 € 18,318 € 18,685
Total Expenses € 1,317,471 € 1,413,281 € 1,444,888 € 1,477,211 € 1,510,266 € 1,544,069 € 1,578,639 € 1,613,993
Net Operating EBITDA € 231,725 € 229,155 € 279,472 € 308,944 € 329,191 € 350,283 € 372,249 € 395,123
Non-Operating:
Depreciation (€ 207,726) (€ 211,881) (€ 216,118) (€ 220,440) (€ 224,849) (€ 229,346) (€ 233,933) (€ 238,612)
Initiation Fees € 42,406 € 50,000 € 51,000 € 52,020 € 53,060 € 54,122 € 55,204 € 56,308
Capital Levy € 75,561 € 81,674 € 84,205 € 86,732 € 89,334 € 92,014 € 94,774 € 97,617
Other Non-Operating Income/(Expense) (€ 15,045) (€ 20,577) (€ 20,989) (€ 21,409) (€ 21,837) (€ 22,274) (€ 22,719) (€ 23,174)
Overall Net Income € 126,921 € 128,371 € 177,570 € 205,846 € 224,899 € 244,798 € 265,575 € 287,263
Baseline Assumptions:
• The baseline for the projections is Management’s FY2018 budgeted income statement, inflation adjusted for the next seven years.
• Inflation is projected at 2% annually over the next seven years – 2.5% for wages. All independent revenue and expense lines are budgeted to
increase at this inflationary level through 2025 unless otherwise noted herein.
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Strategic Plan 2019 - 2025
• Operating subscription and Capital subscription revenue is projected to increase at 3% across the board in 2019. In 2020 and 2021, the model
projects a 2% annual increase for full members (post 2010), with discounted categories increasing at 5%, before returning to a steady state target
of 3% annually, to better align with the perceived market position and match normal budgeted increases for salaries, wages and payroll taxes.
o Capital (Development) levy rates are modelled to increase by 3% annually across the board.
o Reduce the discount for 75x30 (age tenure) members from 80% to 60% - equates to approximately €25,000 in added sub revenue in 2020.
o Adjust the Intermediate age 25-29 category to one nominal subscription rate, set at 70% of the full member subscription – results in an
immaterial gain in sub revenue.
• No change to the overall member count for 2019 as members indicated in the survey a desire to maintain current levels. Category counts also
remain at status quo for the purpose of evaluating a ‘steady state’ model. Any ‘high likelihood’ changes to the existing membership category counts
(i.e. increasing number of Senior eligible members) will be modelled later in the analysis as an incremental cost/revenue opportunity.
o However, full member equivalents project to increase from 441 in 2018 to nearly 500 by 2021 as a result of increasing the rates of
discounted sub paying members.
• Total rounds played have been consistent at approximately 22,000 to 23,000 annually over the past three years (based on club reporting but
believed to be much higher). The projections herein model rounds played on a ‘per member’ basis consistent with historical trends, assuming that
rounds played will only increase over the five-year period on a proportionate basis to golf member levels, and the relative proportion of visitor
rounds will remain consistent (as desired on the member survey).
• The market findings revealed reasonable elasticity to increase the accompanied guest rate in the future. However, given the rate was increased
significantly in recent years, GGA assumes the peak rate increases at inflation in years to follow. The net revenue achieved per paid round (66% in
2016 and 2017) is projected to increase to 70% of the peak rate (benchmark norm).
• The addition of one FTE staff (or two seasonal labourers) in the course department and the addition of staff resources to Clubhouse/Admin
Operations is assumed to add €60,000 to staff payroll in 2019.
• For the purposes of evaluating cash flow projections, Depreciation expense will be modelled at inflation while Capital Maintenance expense, is
projected at 8% of Gross Revenue (appropriate benchmark level for the Club).
• The current bank loan has a balance of €294k at the end of fiscal year 2018 (as indicated in the 2018 audited statements). While the amount
indicated as due in 2019 is €125k, the model assumes the entire amount will be paid off in 2019, for simplicity in evaluating future ability to source
new debt. **Cash reserves are more than sufficient to accomplish this.
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Strategic Plan 2019 - 2025
• Entrance fee revenue has been conservatively budgeted at €50,000 in 2019 (average of past three years) and will increase at inflation in years to
follow. Based on historic attrition levels and payment plan patterns, the Club should target 20-30 new members on an annual basis to meet and
exceed this target.
Incremental Adjustments:
Based on the strategic recommendations herein, the following incremental adjustments that will affect the baseline financial projections (above) are
summarized below:
• Staff training/culture program in early 2019 before the season begins, including a retreat – based on the staff headcount at the Club GGA projects
the human capital investment to cost €10,000.
• Introduce an Intermediate age 30-34 category at one nominal subscription rate, set at 80% of the full member subscription plus the full capital
levy. Current ordinary members that fall into this age category would also receive the discount, resulting in a minor reduction in sub revenue of
approximately €7,500 on average through 2025. GGA believes the increase in member retention at age 30 plus new members joining within this
age range will more than make up for the minor loss in current sub revenue.
• Cap Discount Categories – Projections assume the Club will be able to cap the number of members who can qualify for Senior age/tenure discounts,
with a wait list being determined by the sum of age and tenure for each membership. Members on the wait list still have the option to elect for a
5-day membership. The waitlist could be bypassed if the member can generate a legacy member for the club (child or grandchild) as described
above.
o the 65x20 age/tenure criteria Ordinary Cat 2 increases to 70/25 and a cap is put in place to limit the total category count to 150. The
category currently has 139 members who would be grandfathered to the new category even if they fall short of the 70x25 rule. Based on
typical attrition levels for Senior categories, and the number of members becoming eligible over the next six years, GGA believes the Club
will not reach this cap until the end of the projection period (2025/2026).
o the 75x30 age/tenure criteria Ordinary Cat 3 is capped to a total category count of 100. The category currently has 86 members. Based on
typical attrition levels for Senior categories, and the number of members becoming eligible over the next six years, GGA believes the Club
will hit this cap in 2021.
o The incremental decrease in sub revenue over the next six years as a result of an increasing number of Senior discount members is projected
to range from €10,000 to €20,000. Important to note, GGA projects that if the Club does not introduce a cap on members for these two
categories, the financial impact (loss) of discounted sub revenue would exceed €100,000 annually by the year 2025.
• Invest an additional €5,000 in IT infrastructure to improve utilisation tracking capabilities for members and visitors.
• Master Planning Tender - renderings for possible enhancements to the Clubhouse is projected at €5,000.
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