Goals Won, History Zero

Does this scenario sound familiar? Roughly four months before the beginning of the club’s next fiscal year, the club manager leaves you a message and reminds you that, “We need to start putting together a budget.” You nod in recognition to this voice mail and go about rescuing and renovating turf before the frost bugs and freeze crickets annual late fall invasion begins on the course. A few weeks go by and you make a few remarks about the budgeting process to the other members of the management team at the staff meeting you’ve blown-off for the past three months, only because you have been teaching your staff “Heat Stroke 101”.

As in years past, you finally ask the club accountant to prepare some background information on your spending habits for the past few years. At the next Board meeting, you mention your progress during the superintendent’s report that the budgeting process has started and ask for any input from the Board and the green committee. Shortly after the board meeting the information you requested is provided to you by the mild-mannered club accountant. It’s now November; time to set goals and determine the timeline for completion of the budgeting process. After several more meetings, careful calculations are made, discussions are conducted and the information is consolidated by the club accountant into a working document titled “2012 Club Operational Budget.” Comparisons are made to the current year’s budget, adjustments are engineered, consensus is achieved and the budget proposal goes before the Board for approval. Once approved, the operating budget becomes the focal point of future management decision-making and analysis of operating results. Congratulations, you now managing the golf course business like our House Spender John Boehner and King of the Flim-Flam Senate, Harry Reid.

A good budgeting process for a club is one that provides information and focuses on both financial and operational outcomes. It provides a supportive environment for making effective management decisions. A good budgeting process is timely and strives to achieve excellence while providing the backdrop for operational control. It details a set of standards to which you are attempting to adhere—the definition of management and control. Furthermore, a good budgeting process should address both the personal and technical aspects of creating this important operating plan. The personal aspects include management and staff involvement, goal-setting behavior and the integration of continuous improvement strategies. Technical aspects focus more on resource allocation, forecasting techniques, probability models and compliance.

Success in 2012 will require a very different approach than was the case a decade ago. In the past few years, the private club industry has faced a variety of marketing, membership and revenue challenges that were unheard of 10 or 15 years ago. Membership in clubs will be increasing focused on value and the ability to become a “One Stop Family” entertainment club.

Budget by Goals, Satisfaction and Importance

What are the identified challenges that will continue without new investment? Is a change needed to your current approach to routine maintenance, revenue generating activities and member retention? Yes, things you do each day will effect revenue and member retention, as a superintendent you must be concerned with revenue generation and member retention, this is your future!

When budget discussions begin, “Why?” should always be the most important question. Why raise or lower cost in golf course conditioning? Why increase staffing, resources or systems? Why invest in a new irrigation system. Simply increasing or lowering percentages across the board will not give you the answers. Your success going forward depends on how well you, as the superintendent, understand your clubs needs, your members' desires, and the solutions required to achieve your club’s goals.

By comparison, think how obvious these decisions would be if the golf course was unexpectedly hit by a devastating tornado or flood, or if the clubhouse burned to the ground. Make no mistake about it, by default, the goals of the management team are shared goals and the successes are also shared.

Many superintendents lament that they have worked years to “get the budget to where it is today”. I contend that in these business climates funds should be allocated where they can attract and retain members. In McMahon Group survey results over the past 6 years from over 120 golf and country clubs the golf course as a club activity and a club feature scored highest among all other activities and features in member satisfaction and importance. I see two significant facts emerging from this data, members are highly satisfied with the golf course, more than any other feature at clubs, and, these assets should be preserved with proper and proportional operational funds.

How would management arrive at a proper proportion of revenue that should be allocated to golf course maintenance? The fact still remains that golf course budgets do not include a revenue side. One simple formula for average golf and country clubs is a dollar amount of approximately 20% - 25% of dues income. Currently most clubs charge higher dues for a golf membership, is the difference in dues from a social member to a golf member the true cost of maintaining and capitalizing the golf course? You see, it’s not easy to segregate an amount from dues to allocate to golf course revenue but it can paint a picture of where a club might want to be. Other revenue sources that can be recognized are guest fees, cart fees, a portion of outing income, a portion of range fees, bag storage, locker rental fees and this list can go on. As superintendent and a member of the management team you should know the clubs revenue numbers.

The above are valid ways to approximate what income could be allocated to the golf course based on a number of clubs and the average of dollars spent on golf course maintenance. However, your managing a business, and if you where the sole proprietor you will want to have profit or in a club’s case money left for capital improvements or more precisely, what we call asset allocation fund.

Initiation Fees – Going, Going, Gone

Slowly, initiation fees are becoming less relevant in the country club world. Only the very elite clubs will be enjoying six-figure initiation fees, and waiting lists. In the not too distant past initiation fees fueled capital improvements, now in addition to dues (a category named “capital dues”) amounts are used to fund asset replacements. In addition, more often than not, clubs are using a dining minimum to balance losses in the F&B department. The question begs an answer; will increases in monthly dues become the knock-out blow to clubs? Will the gap widen between the amount of dues charged for golf memberships and social memberships?

What about the golf course? If budgets are built to support routine maintenance at subscribed levels perhaps the history type formulas could be done away with. If this year you needed X next year you shouldn’t necessarily need X + 3%. List your annual goals and budget what you need, as you become better at your business, you may become better at budgeting and better and more efficient at the maintenance of the golf course you manage.



For an in-depth look at a goal orientated budget template go to:

Goal Directed Budget Template

Can You Tell Me His Name?

At the age of 7, his family was forced out of their home. The boy had to work to support them.

At age 9, his mother died.

Age 22, he started a business.... that failed.

Age 23, ran for state legislature... he lost.

That same year, he lost his job, and failed to get into law school.

Age 24, he borrowed money from a friend to start a new business. Within months he was bankrupt, and spent the next SEVENTEEN years paying off this debt.

Age 25, ran for state legislature... and won.

Age 26, his fiancée died, sending him into a deep depression...ending in a nervous breakdown that kept him in bed for six months.

Age 29, ran for speaker of the state legislature... and lost.

Age 31, ran for elector... lost again.

Age 34, ran for Congress... laughed out of the election.

Age 35, ran for Congress again. Got elected finally

Age 37, ran for re-election... blown out of the election (although incumbents win 90+% of the time).

At 40, sought the job of land officer in his home state... soundly rejected.

Five long years later, he had the nerve to run for the US Senate...and got trounced.

After losing, he said, “The path was worn & slippery. My foot slipped from under me,
knocking the other out of the way, but I recovered and said to myself,
'It's a slip and not a fall.'"

Age 47, sought his party's vice-presidential nomination: trounced again.

Age 49, ran for US Senate again... and was again soundly defeated.

Age 51, ran for, get this, President of the United States!! Talk about temerity!!
Consider this quote from our 11-time loser:

The sense of obligation to continue is present in all of us. A duty to strive is the duty of us all. I felt a call to that duty.

“CONTINUE”

What a strong word; it says so much. Within it resides one of the three single greatest powers you have at your instant disposal. That's the power used by the man you just read about... President Abraham Lincoln.

So, if some grass died this summer and you spend much of your time counting "warts on the course" remember Abe.

H-2B Program, Changes Will Effect Users NOW

The Department of Labor (DOL) has targeted the H-2B program for termination. In one of its first efforts to dismantle the program, DOL issued a new prevailing wage rule. According to DOL, that wage regulation will increase the costs for H-2B employees by nearly $4.50/hour.

When the rule was first published, it had an effective date of January 1, 2012. However, pursuant to an amendment to the rule, DOL has now sped up the effective date to September 30, 2011.

Those clubs that use the H-2B program must prepare for this wage hike now. Not only will this new prevailing wage be in effect for those H-2B workers who begin work after 9/30/11, but that wage must also be used for those H-2B workers who are here now and are due paychecks after 9/30/11.

What's Next?

The US Swelters Under Torrid Heat Wave

Is this Déjà Vu all over again?

Headline:

It will be intensely hot again Thursday in many parts of the country. From the South and the Midwest to the East Coast, temperatures will soar again into the mid to high 90s and could top 100 at many locations.

Heat advisories were issued in at least 27 states. Officials say at least 22 people have died from heat-related illnesses. For many, it will likely remain hot and humid for several more days to come.

Heat-Related Deaths:

The heat turned deadly in some parts of the Midwest: In Kansas City, where the heat wave is entering its 10th day, Mayor Sly James said heat appears to be a factor in the deaths of at least 13 people.

"Generally, the folks who have died have been those who have been less able to protect themselves against the heat for lack of air conditioning, fans, cool places, those types of things," James said. "And those folks who are often elderly or concentrated in high rises, or in places where there are pockets of poverty."

The summer of 2010 is on a pace to break temperature records up and down the East Coast and along the Gulf of Mexico. For example, Washington, D.C. had 40 days of 90-plus-degree temperatures in June and July, more than typically occur in an entire average year (37). During the recent U.S. Girls’ Junior Championship at The Country Club of North Carolina in the Village of Pinehurst, the heat index reached triple digits, topping out at 110.

Déjà Vu, 2010 USGA article:

Needless to say, this has put tremendous strain on golf courses and those in charge of maintaining them.

USGA Green Section agronomists consider it necessary and appropriate to practice defensive maintenance and management programs as long as these weather extremes continue. Obviously, extra care must be taken to pamper the grass through this difficult weather, and understanding from golfers is also a must to help get through the crisis. If everyone works together and does what is best for the grass, the summer of 2010 will one day be nothing more than just a bad memory.

By way of letters sent to USGA Member courses and via communication through the Green Section Record, the goal has been to alert golfers and turf managers alike about the extraordinary weather conditions and turf-loss-related matters. This extended period of heat and drought – followed by heat, humidity and thunderstorms – has caused and probably will continue to cause turf stress and turf loss throughout the affected areas of the country.

“No two golf courses are alike, having different grasses, soils, course features and golfer expectations,” said Stanley Zontek, director of the Mid-Atlantic Region for the USGA Green Section. “It is important that golf course superintendents use defensive golf course maintenance programs. That is, be conservative and pamper the grass. The turfgrass is under intense weather stress, which is compounded by an increase in disease pressure. Everyone should be more concerned about plant health than green speed.

“There is an old adage in our industry: Slow grass is better than no grass. This is not a joke. It needs to be taken seriously.”

Some suggested management programs include:

Maintain a solid fungicide program: With heat, humidity and thunderstorms, fungicides do not last as long and disease pressure is greater. There is no better money spent than in protecting the grass from disease. If the fungicide budget is being depleted, pull back in other areas. However, when conditions are this difficult, fungicides often cannot completely overcome disease incidence. It may well be a case of reducing disease injury rather than eliminating it altogether. The following steps are just as important as applying a good fungicide.

Raise mowing heights and use sharp mowers:

This can help the grass survive.

In an age of rising expectations for putting-green performance, the recommendation to raise the mowing height on bentgrass greens to promote better summer survival is not a popular one for golfers. Of course, failed putting greens in late August are not popular, either. However, science is on the superintendent’s side on this one.

The benefit of raising the mowing height in the summer can be explained by looking at the relationship between energy production (photosynthesis) and energy consumption (respiration) in the summer. As temperatures increase, the rate of photosynthesis in cool-season grasses (bentgrass) decreases, but the rate of respiration increases. Explained another way, energy production is slowing while energy consumption is increasing. This is not sustainable over the long term because, eventually, the plant is going to run out of fuel.

Chris Hartwiger, a USGA Green Section senior agronomist based in the Southeast Region, says that raising the mowing height increases the amount of leaf surface area, which increases the amount of potential photosynthesis. In essence, the higher mowing height is creating a bigger tank of fuel for the plant, and hopefully, the fuel will not run out until cooler temperatures return in the fall.

Mow less…roll more:

The goal is to reduce mechanical stress to the grass plant. Mowing is a stressful practice for bentgrass putting greens in the summer months. Researchers at the University of Arkansas found that, by mowing three days per week and rolling three times per week, green speeds would remain consistent throughout the week. In the field, we have observed this practice used in the summer months, and superintendents report favorable results with respect to turf quality. Therefore, if stress is high, reducing mowing frequency and substituting rolling is an option to consider for limiting stress.

Switching from grooved rollers to solid rollers will also protect collars from the turning of mowers.

Carefully monitor course traffic:

Traffic causes additional stress when grasses are already weakened by high temperatures. During these difficult economic times, every golf course wants as much play as possible, but traffic patterns need to be managed carefully. “During these stress periods, we emphasize the importance of using ropes and stakes to manage traffic flow on and off greens. In some cases, weak putting greens may need to be closed,” said Bud White, director of the Mid-Continent Region.

Spoonfeed the grass:

Bob Brame, director of the North-Central Region, emphasizes the importance of staying consistent with a light and frequent foliar feeling. Excessive grass growth depletes carbohydrates (plant food). Iron (to keep the grass green) and growth regulator applications will be part of this mix.

Air movement: On shaded or pocketed greens, prune tree limbs, use fans, and generally keep the air moving. When you are hot, you stand in front of a fan to cool yourself. When the grass is stressed, it needs good air movement as well. Drier turf is also less prone to disease.

“Fans have proven in research trials and in the field to be a valuable bentgrass life support tool,” said Hartwiger. “Fans should be running 24 hours a day right now. If portable fans are available, use them and rotate them throughout the property as needs dictate.”

Do not over-water:

Manage water applications carefully, and hand-water if possible. Lightly syringe the turf with the nozzle. If you are wetting the soil, it’s too much. Any midday watering should be focused on cooling the turf canopy. Remember, you can always add more water, but wet, saturated soil can damage roots, increase disease and contribute to turf loss via wet wilt. If corrective watering needs to be done to curtail dry spots, the extra water should be applied in the early morning or late in the evening. Do not over-water the grass in midday heat.

Watch the putting greens carefully and add supplemental water as often as needed to prevent shallow-rooted bentgrass from wilting.

Surface aerate the greens:

This allows the soil to breath, excess moisture to escape, and roots to re-grow, thereby helping the grass to survive.

Venting the putting greens is another way to properly maintain turf. Venting is a term that applies to the practice of creating small, non-disruptive holes in a putting green for the purpose of improving gas exchange, increasing water infiltration, and stimulating new root initiation. The term venting is used instead of aeration because of the negative connotations golfers associate with the term aeration. Venting is a golfer-friendly practice.

Dr. Robert Carrow, of the University of Georgia, found that the ideal venting frequency in his research plots was every 21 days throughout the summer months. For the summer of 2010, the Green Section recommends venting greens every two to three weeks until fall core aeration arrives.

None of these suggestions by themselves will make the difference between putting green survival and serious injury. It is important to implement all of these suggestions to the greatest degree possible. Although you can’t do much to control the weather, these are steps that will help in the long run.

Meteorologist Allan Dunham with the National Weather Service in Taunton, Mass., said the high dew point level, combined with hot temperatures, will drench the North Atlantic states in Florida-like conditions.

"This is going to cover basically all of southern New England, getting up into southern New Hampshire all the way back towards New York and down along the Mid-Atlantic Seaboard," he said.

Sound familiar? Parts of the above appeared in last year’s USGA Green Section Report, August 4, 2010.