extraordinary club management for extraordinary times
DESCRIPTION
TRANSCRIPT
Fitness Industry Association Manchester, England
June 2009
Extraordinary Club Management For Extraordinary Times
“Welcome”
Opportunity Or Crisis?
Leaders Lead!
Channels
San Francisco Bay AreaEmbarcadero Center
Citigroup CenterYerba BuenaUnion Square
Fillmore CenterCity Center
Santana RowAlmaden ValleySilicon ValleySilver CreekScotts Valley
Nob HillSkyport
BrentwoodPetaluma
San Diego RegionSolana Beach
EncinitasCarmel Mountain Ranch
Long BeachMission Valley
Club One Owned & Operated Clubs
Club One ‐ The CompanyAward‐winning experts in fitness and wellness
Founded in 1991Committed to developing high-end, convenient health clubsAggressive growth through acquisition“Top 25 Club Companies in the US” ~ IHRSAINC 500
15 owned clubs in CaliforniaSan Francisco Bay Area & San Diego RegionBest of class legacy year after year San Diego Magazine, San Francisco Magazine, CitySports, Competitor, Shape, Fitness Magazine
70 managed clubs in 10 states and CanadaCorporate Fitness Centers with Fortune 500 Partners
“AOL Vendor of the Year”C. Everett Koop Award– “Best Employee Wellness Program in the US”
Jewish Community Centers/MunicipalitiesCommercial health clubsDevelopers
The Golden Rake Story
Once upon a time the president of a company was walking around the company with a consultant. They happen upon a young fellow raking leaves, but to both men’s dismay, the gardener is using a rake with only three teeth. The president says, “What are you doing”? The gardener replies, “I’m raking leaves.” The president asks “Why are you using that rake, you’re not picking up many leaves”? The gardener states, “This is what they gave me.” Finally the president says, “Why didn’t you get a better rake”? The gardener replies “That’s not my job.” As the president walks away he is visibly angry. He states as a matter of fact that this is a perfect example of what is wrong with the company. People complain about not having the right tools, parts, drawings, and everything else. This shows the lack of urgency the president feels is dragging the company down. He asks out of frustration “How are we every going to make it, if we can’t even give someone a decent rake”? “I’ve got to find that supervisor and be certain the gardener gets a better rake.”
The consultant asks “Are you certain the supervisor is responsible”? “Absolutely!” retorts the president. “His job is to make certain his people have the right tools.” The consultant offers, “If the supervisor is responsible, how would you solve this problem”? The president says “More training, better selection, maybe a new supervisor.” The consultant counters “Are those actions going to get you where you need to be”? Puzzled the president says, “What do you mean by that”? The consultant says, “What is it going to take to turn this place around”? What do you want to create”? The president replies “Well now, if I’m going to be a hands‐on leader, if I’m going to demonstrate a personal sense of urgency, if I’m going to live the vision, I guess I’ll go and get the rake.” The consultant says, “Whoa, is your getting the rake really going to fix the problem”? The president says, “If every person in this company doesn’t get a sense of urgency about meeting their commitments, we’re in big trouble.” “Okay” said the consultant “If everyone must be committed to doing his/her job no matter what it takes, then who must take responsibility in the case of the gardener and the rake”?
The Golden Rake Story
The president smiles and says, “The gardener has to be responsible.”“He’s the only one that can make sure he has the right rake.” He realizes that the supervisor and ultimately every individual is responsible for building commitment, but not chasing rakes. It’s not about chasing rakes, it’s about commitment. Every person who saw the rake is responsible.
The Golden Rake Story
Begin with the End in Mind
BeSee
DoDo
HaveGet
Creating Value
Useful
DesirableUsable
Value Creation
Why are you in business?
People?Club One Fitness Manager
Where are your People?
VALUES
PERFORMANCE
What Are You Doing Differently?
• Sales
• Retention
• Programming
• Expenses
What Can You Do?
• Wage Freezes• Hiring Freezes• Pay Cuts• Staff Reductions• Expense Reductions• Contract Reductions/Eliminations
What Are Your Metrics?
Jack Welch from GE said:
“If I had to run a company on THREE measures, those would be…”
• Customer Satisfaction• Employee Satisfaction• Cash Flow
NASA
JFK was visiting NASA.
He stopped to speak to a man holding a mop…
JFK asked: “What do you do”?
The man responded: “I’m helping to put a man on the moon, sir.”
Member Experience
Product
Touch Point
Touch Point
Touch Point
Designing the Member Experience
Experience IS the Product!
Good Design when well done is invisible
Like Air Conditioning –
when it’s right you don’t think about it
The Member Journey…
Who Packed Your Parachute?An excerpt from Aim For The Heart by Tom Mathews
As a leader, do you honor and appreciate the power of WE? Do you stop to thank and recognize the members of your team? Do you consistently show an attitude of gratitude?I recently read a great story about Captain Charles Plumb, a graduate from the Naval Academy, whose plane, after 74 successful combat missions over North Vietnam, was shot down. He parachuted to safety, but was captured, tortured and spent 2,103 days in a small box‐like cell.After surviving the ordeal, Captain Plumb received the Silver Star, Bronze Star, the Legion of Merit and two Purple Hearts, and returned to America and spoke to many groups about his experience and how it compared to the challenges of every day life.Shortly after coming home, Charlie and his wife were sitting in a restaurant. A man rose from a nearby table, walked over and said, "You're Plumb! You flew jet fighters in Vietnam from the aircraft carrier Kitty Hawk. You were shot down!"
Who Packed Your Parachute?Surprised that he was recognized, Charlie responded, "How in the world did you know that?" The man replied, "I packed your parachute." Charlie looked up with surprise. The man pumped his hand, gave a thumbs‐up, and said, "I guess it worked!"Charlie stood to shake the man's hand, and assured him, "It most certainly did work. If it had not worked, I would not be here today."Charlie could not sleep that night, thinking about the man. He wondered if he might have seen him and not even said, "Good morning, how are you?" He thought of the many hours the sailor had spent bending over a long wooden table in the bottom of the ship, carefully folding the silks and weaving the shrouds of each chute, each time holding in his hands the fate of someone he didn't know.Plumb then began to realize that along with the physical parachute, he needed mental, emotional and spiritual parachutes. He had called on all these supports during his long and painful ordeal.As a leader, how many times a day, a week, a month, do we pass up the opportunity to thank those people in our organization who are "packing our parachutes?"
20 Basics
1. All staff members should be in full uniform.2. All Fitness Program offices should be immaculate.3. All offices need to be clear of clutter and professional.4. The web site is your responsibility to keep current with
content.5. Maintain promotional materials in the club – clean copies. 6. Manage sales on a daily basis.7. Manage your payroll.8. Ownership & Accountability, Relentless attention to detail,
Responsiveness, Proactive Hospitality and an overall sense of urgency.
9. Only Handle It Once (OHIO).10. Live the Mission (Purpose), Vision, Values, and
Foundations.11. Meet with each team member regularly.12. GM contacts each new member personally to welcome him
or her. 13. Walk your club, spend time at your front desk, and learn. 14. Every new member needs to go through an Orientation
Process.
20 Basics
15. Attrition rate at or below 35%! 16. We should connect three times with every member each
visit. 17. We need to embrace our sales automation software and
CRM. 18. Our clubs must be ready, clean and maintained every day.19. Focus on Non‐Dues Revenue per member. Programming.20. Perfection is the goal! Get Members / Keep Members.
20 Basics
Creating The Value Proposition: Wow or Delight
RetentionEnrollment
The Club TeamThe Organization
Our Purpose - Some Version Of:Improve The Quality Of People’s Lives
People Are Unfit And Would Like To Be Fit & Healthy
The Member
Connection
Loyalty
Intervention Of At Risk Members
Every Thing You Do – Every Touch Point
Retention Model
Enrollment
On-Boarding
Connection
Members For Life
Prospect Enrolls
Systematic Enrollment
On‐Boarding – Getting Started The Right Way
• Fitness Goals• Lifestyle Interests• Fitness Assessment• Personality / Motivation• Age• Orientation• Customized Program Design
Day 1 & 2 (if possible)
On‐Boarding
Getting Started The Right Way
The beginning is critical
Days 0-30 (30-day check-up)
Connection
Area of Play
Connection
• Where do I fit in?• I may want to play NOT work• I need to be comfortable• I need to know there are people like me here• I need to feel welcome and accepted• I need to NOT be judged• I need to be me• I need to be my best self not compared to others• I want to engage…
Programs That Connect
• 4‐6 weeks (have a sense of closure)
• Small groups (4‐6 people)
• Why Pilates works
• Affordable sustainable price point ($10‐$25US per session)
• Community building
• On‐going progression with
group
Life is good
You are engaged
Intervention / Support
• Life happens / Stuff gets in the way• Rationalization makes it easy to stop• I’m hurt ‐ I’m tired ‐ I’m busy ‐ I’m stressed• My family ‐My job ‐ No time• Help ME!• Save ME!• Support ME!• Hold ME accountable!• Recovery
Member Goes Missing
Stops Coming To The Club
Life Happens
Stuff gets in the way
Why People Leave
Product Dissatisfaction
14%
Competition9%
Other Interests5%
Move3%
Attitude - Indifference by
Employees68%
Die1%
US News & World Report
Save MEDo you care?
Recovery
• Recovery management system
• E‐mails
• Calls
• Incentives
• Letters
• Service Desk Prompts
I’m Back!
Why did I return?
You Mess UP
Why did you let this happen?
Resolve My Issue!Unhappy Customers Who
Remain Faithful
0102030405060708090
100
No Complaints UnresolvedComplaints
ResolvedComplaints
QuicklyResolved
Complaints
You Recover and Build Loyalty
Wow – you rock!
Loyalty
• I’ve gotten / am getting results• I love the staff• I love the club• I have friends here• I belong here• I am a part of this community• This is my lifestyle• Others have got to experience this (Delight)• This is a part of who I am (BE)
Constant daily challenge – never done
I got results!
I’m feeling good
Your People Are WonderfulThey helped me and
supported me and I like them
There are others like me hereI’ve made friends and connections with like minded people
I belong to a community
Lifestyle is ME
I’ve got it and I like it!
This is MY CLUB
I belong and I’m not leaving!
Others Have Got To Experience This
Promoter / Raving Fan
Facilities
Programs
People
OptimalMember
Experience
Cleanliness; Upkeep, HousekeepingAmenities, Maintenance, Equipment
Group Fitness, Personal Training, One StartSpecialty/fee-based programs
1st impression, Friendliness, Training, Membership Services, Service Desk Efficiency
The WOW Factor, Optimization of member experience
“I hope this was helpful”
Contact Information
Bill McBrideChief Operating OfficerClub One, [email protected][email protected](Bill underscore [email protected])