Strategic planning draft_5

Draft Alderbrook Golf & Yacht ClubStrategic Planning Workshop

(draft)December 7, 2010

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Agenda

• Background (completed)• Scope & Objectives (completed)• Mission & Vision Statements & Core Values (in

progress)• SWOTs Analysis (completed)• Identification of Goals & Action Plan (in

progress)• The Future (start)

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What Is Strategic Planning?Confucius said that if he were made ruler of the world the first thing he would do would be to fix the meaning of the words because action follows words•Strategic Planning Means:

– Designing a desired future and identifying ways to bring it about.– A process that begins with setting organizational aims, defines strategies and policies to

achieve them and develops detailed plans to make sure they are implemented so as to achieve the ends sought.

– An attitude or philosophy, the organization must believe it is worth doing and want to do it as well as it can.

– Structure that takes into consideration immediate, short term and long term plans

•Strategic Planning is NOT:– Making future plans or decisions. – Is not cast in stone, must be flexible– Does not replace management awareness & judgment– Is not just about the budget

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Characteristics of a Useful Strategic Plan

A useful strategic plan exhibits many characteristics. Specifically, it should be:•A set of priorities. Setting priorities allows for the plan to be adjusted according to changing needs or resources.•Achievable, measurable, and time sensitive. Remember, it’s better to do a few things well than many things poorly. The plan should contain goals that are measurable and have deadlines.•Flexible and responsive to changing conditions. The plan is a road map that may contain unforeseen detours such as unexpected crisis, new opportunities, or changes in resources.•Short and simple. Plans that are more like a book will sit on a shelf. Keep it focused on the most important things to accomplish.•A unit, not a menu. A useful plan is not a wish book. Everything in the plan needs to be accomplished.•The means to an end, not an end in itself. The plan is the process by which it reaches its destination; it is not the destination.•Based on a three- to five-year period. The strategic plan should be a living document that has a one-year drop off and a new year added so that it always covers the same time period.

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Conceptual Roadmap

• Where Are We?• Where Do We Want to Go?• Can We Get There?• Which Strategies Will Achieve Which Aims?• What Decisions Must Be Made Now To Get

There?• Monitor Performance• Recycle Annually

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AGYC Vision

Alderbrook Golf & Yacht Club is an HOA owned community comprised of a diverse group of residents actively participating primarily in golf related activities. The Alderbrook Golf & Yacht Club community will be preserved and enhanced through clear, reasonable governance and rules; the preservation, maintenance and improvement of the golf course, infrastructure and facilities in a cost effective and efficient manner; and, a commitment to preserve, protect and enhance the quality of life of our members and the value of all properties.

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AGYC Mission Statement

The mission of the Alderbrook Golf & Yacht Club Homeowners Association is to preserve and enhance our assets, environment, safety, security, quality of life, and social and recreational opportunities for our members.

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What Are AGYC’s Core Values?The AGYC embraces the core values of:•Accountability: We strive to achieve excellence in all we do; we advocate fulfilling our responsibilities as Board members, homeowners and staff, working to pursue suggestions, ideas and creative approaches through training and education, leading to continued improvement in all we do pursuant to our governing documents.•Communication: We promote honest, open communication and easy access to information; transparency builds trust in communication.•Community Commitment: We strive to make members and guests our first priority. We measure our success by how we meet their expectations. •Fairness: We are sensitive to issues brought forward by our members , guests, employees and neighbors. We make judgments that are impartial, unprejudiced and for the long-term betterment of our community. •Integrity: We are honest and ethical in all that we do. •Respect for others: We treat people with the respect each of us would want. •Teamwork: We work together to create the best results. We share responsibility for the team's success. •Environmental: (Environmental Committee)•Partnership: We believe in the concept of partnerships, working to achieve a strong community.•Safety and Security: (Ron)

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AGYC Current Financial Situation• Assets $4,250,000• Total Indebtedness $1,940,500• Cash flow:

– October – March historically are negative cash flow months – April – September are positive cash flow

• months Monthly fees are $190 – Includes golf for family and all homeowners fees– All pay the same (golfers, non golfers, residents and non residents)

• Operating annual budget of approximately $1.95 million– Approximately 15% of revenue is from non-members– 30 out of 535 members are delinquent (5.6%) as of 9-30-2010– Reserves are approximately $90,000 and operating cash of about $70,000 (as of 9-30-2010)

• There are financial risks associated with the strategic plan that may have financial impact , such as fully funding reserves, major roadwork., equipment replacements, restroom improvement, driving range, Annex maintenance, etc.

• It would be reasonable to expect increased operational expenses along with identified new goals beyond the current norm.

• Depending on the future direction of the plan regarding golf (more or less outside use)we should expect those revenues to follow that plan. Should the plan help expedite lot sales we should see an increase in dues revenue.

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Market Served(estimates)

Golfers• Rounds Played -Members 58%, Guest of Members 11%, Resort 4%, Reciprocal 1%, Promotional 2% , Walk In 24%

• Approximately 62% of our members are golfers

•There are golfers in 6 of the 24 rentals – about 25%

•If you subtract the rentals from the total number of homes, the percentage of golfers is about 67%

•There are golfers playing on 42 of the lots – about 30%

•There are golfers in 127 of the households w/retirees – about 68%

•There are golfers in 30 of the households w/commuters – about 39%

•There are golfers in 6 of the households w/school age children – about 32%

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AGYC Competitive Situation• Real Estate

– Strengths• HOA – owned, premier golf course• Unique, relaxed, and friendly atmosphere• Low entry price for real estate and golf• New clubhouse• In sync with baby boomer demographic• Diverse properties and home styles

– Weaknesses• Low prices suggest poor property value.• Some poorly maintained properties, roads, etc. create a negative first impression of the community by

potential buyers. • Real estate sales down• Minimal resources devoted to partner with developer to promote attractive sales offers• Dues structure may limit the market to golfers

• Golf Industry - Strengths – Course is well maintained, fun to play for all levels, good challenge, reasonable facility for tournaments,

available tee times- Weaknesses – Remote location, high rainfall area, semi-private, green fees higher end of scale, golfing is on a

decline, economy• Food & Beverage

- Strengths – Beautiful setting, nice looking facility, affordable pricing , casual & relaxing, quality food, captive market- Weaknesses – Remote location, limited banquet capabilities, small kitchen facility

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Market Served (Cont.)(see other deck)

Real Estate (Single family and lots)

•Homes – 341; about 24 of them are rentals •Lots – 141 •2nd homes – 108; most – AGYC is main residence •Part-timers – all of the ones w/2nd homes, plus about ¼ of the others leave for some part of the winter; from 2007 survey, average number of months in residence – 10 months

•Households w/retirees – 187

•Households w/commuters – 76

•Households w/school age children – 19

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Golf Community Sales 2005 – 2010(add no. of homes in development & on the market)

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2010 2009 2008 2007 2006 2005

AlderbrookNumber of sales 8 6 14 17 18 12Ave. Sales Price 221,675 216,733 260,000 315,115 297,229 245,258

Five Year Averages Area 1,867$ per Foot 144Days on Market 221

Lakeland Number of sales 12 (1) 19 (2) 16 (0) 32 (14) 51 (12) 70 (15)Ave. Sales Price 285,371 252,303 301,106 353,280 343,159 295,074Ave. Condo SP 319,950 260,500 0 368,200 312,000 265,000


Pt Ludlow Number of sales 12 (2) 8 (1) 4 23 (5) 20 (4) 33 (2)Ave. Sales Price 299,667 279,475 348,250 433,302 431,240 400,430


Sunland Number of sales 24 (8) 33 (9) 19 (3) 24 (7) 22 (3) 4 (2)Ave. Sales Price 240,057 283,049 296,879 326,063 329,614 285,725Ave. Condo SP 245,850 258,800 288,300 281,400 290,000 278,000


Notes: Numbers in () = condo / townhouse salesAll communities generally follow market sales and price trends.Alderbrook clearly has the lowest property value. Our three competitors all offer condos and or townhouses as an alternative to SFRDays on market at Alderbrook are significantly higher than Sunland or Lakeland.

Amenities Offered • Golf Course : Practice Areas, Lessons, Tournaments, Golf Merchandise,

Cart Rental, Rental Clubs, Club Repair, Custom Fitting, Men’s & Ladies Club activities

• Local recreational opportunities: Street & off-road biking, street & trail walking, hiking, dog walking, wildlife viewing, kayaking, boating, music, shopping, casino

• Clubhouse: Meeting space, Social functions, Outdoor BBQ, Outdoor fire pit, Mt. & Golf Course views

• Food Services: Bar & Grill open to public, Facility & off site catering, Open every day for lunch & dinner, casual atmosphere

• Wickiup: Community park with covered barbecue and meeting area, Play equipment for elementary age children, Dirt bike track, Two basketball courts, Bocci playing areas, Community garden, Two tennis courts, Public restrooms

• Annex: A multipurpose building, complete with exercise equipment, library, ping pong table, card tables, kitchen and meeting area.

• Lodging: Resort, motel, bed & breakfast

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Where Do We Want To Go?

• Preliminary identification of goals/priorities• SWOTS analysis• Identification of strategies to exploit

opportunities and avoid threats• Evaluate alternative strategies• Prepare plans to achieve goals• Implementation plans based on priorities• Other?

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Key Strengths• Golf Course

– Asset for home values– Affordability– Playability– HOA ownership– Well maintained– Member benefits

• Financial Stability– Minimal indebtedness– Economical place to live– Built in revenue stream &

membership control– Membership tied to ownership

• Clubhouse– Multiple use facility– Well located– Food & beverage

• Location – Natural beauty of the area– Remote location– Proximity to Hood Canal & the

Resort– Commutable

• Members strong sense of community; friendly membership, social activities, volunteerism

• Staffing– Knowledgeable staff– Golf staff professionals– Experienced F&B staff– Strong GM with a vision

• Affordable property

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Key Weaknesses• Inconsistent & inadequate

communication• Remote location• Ability to accept change• Dues structure

– O&M fees high for non-golfers– Members unwillingness to

cover additional maintenance/overhead costs

• Real estate slow; people selling

• Weak committee structure

• Roads, roadside & drainage in need of maintenance

• Shortage of maintenance staff • Revenue & talent impact

related to part-timers• Inconsistent rules

enforcement• Low marketing & recognition

efforts• Insufficient maintenance

equipment• Weak partnership w/the

resort• Minimal activities for non-

golfers

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Key Opportunities• Build on existing

partnerships with the Resort, chamber, corporate, UTA, other associations, Alderbrook Properties, reciprocals, etc.

• Increase marketing efforts, tapping golf course closures, new golf course, tournaments, metro areas

• Increase clubhouse events & functions, corporate outings, banquets, etc.

• Increase non-golfer scheduled activities, women golfer activities, etc.

• Attract more retiring golfers, baby boomers, etc.

• Maximize F&B, catering and outside events

• Golf course improvements• Utilization of property AGYC

owns• Rework existing website

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Key Threats• Slow recovery in market,

economy, mortgage closures• O&M structure dues do not cover

expenses & required reserves• Outside competition, other golf

courses, new golf courses• Cost of water, PUD 1, water cost

increases to homes & course• Security, limited disaster

planning, scant law enforcement , slow response, vacant at homes at risk, et al

• Limited market, not prepared for next generation of buyers

• Budgeting, needs vs wants• Decline in Golf industry• Inadequate Reserves to cover

• Road renovation• Cart paths• Equipment• Drainage• General Maintenance

• Developer not selling new memberships

• Inconsistent rules or governing documents enforcement

• Poor cell phone reception• Poorly informed members

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Immediate Term Strategic Priorities (1 Year)

1. Create consistent and efficient communication tools (Ginny)2. Increase budget reserves to cover: (Marc & Rick)

• Road renovation• Cart paths• Equipment• Drainage• General Maintenance

3. Increase F&B Revenue (Renee)4. Increase Clubhouse& Golf events & functions revenue (Shirley)5. Move AGYC our business ahead of the competition to present the right message to our target market and give our business an edge over the competition. (Curt)6. Correct inconsistent rules or governing documents enforcement (Bill)7. Build on existing partnerships with the Resort, chamber, corporate, UTA, other associations, Alderbrook Properties, reciprocals, etc. to increase revenue (Wayne)8. Develop & implement a comprehensive security and disaster plan. (Ron)

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Goal #2: Increase budget reserves (draft) •Strategy 2A Roads – Current reserves and annual contributions to reserves are adequate to perform minor repairs. Road renovation is under study and will require major capital expenditures in the future.•ACTION STEP: Road renovation is under study and will require major capital expenditures in the future.•DEPENDENCIES:•RISKS: •TIME: •STATUS: In progress

•Strategy 2B Cart paths - Current reserves and annual contributions to reserves are adequate to perform repairs. •ACTION STEP: •DEPENDENCIES: •RISKS: Major renovation is outside of the current budget allocations.•TIME:•STATUS:

• Strategy 2C Equipment – Number one priority. No greens equipment has been purchased since 2008 and some needs are critical. •ACTION STEP: •DEPENDENCIES: Average annual expenditure should exceed $50,000 to maintain equipment suite.•RISKS: •TIME:•STATUS:

Goal #2: Increase budget reserves (draft)

•Strategy 2D Drainage – current $10 per month per member assessment should be combined with roads and drainage maintenance in the operating budget and the assessment should be deleted.ACTION STEP: DEPENDENCIES: RISKS: TIME: STATUS:

• Strategy 2E General Maintenance – A reserve account should be established for long term major building maintenance for such things as new roof, HVAC equipment replacement etc. Probably about $3 to $5 per lot per month or$18,000 to $30,000 per year for the buildings would allow for eventual rebuilding of restrooms, improvements to the maintenance area and other major maintenance activities on or in our buildings.•ACTION STEP:•DEPENDENCIES:•RISKS:. •TIME: •STATUS:

Goal #3: Increase Food & Beverage Revenue (draft)

• Strategy 3A: Within it’s physical infrastructure and with its community demographics, make the following determinations. Take action when warranted.

• Determine if HOA’s discount should be reduced or eliminated to offset Food & Beverage overhead. • Improve kitchen and server service – speed, courtesy, understanding of the menu, and receipt of the final

check. • Develop additional marketing programs to address food and beverage's superior price, cost, and value.• Review days/hours of operation to see if changes will increase usage or offset costs. • Format: Consider modifications and alternatives: bar and dining areas, sit down menu, window, and take-out,

etc.. • Review management oversight to determine additional work that can be done to effectively oversee food and

beverage operations quality and service issues. • Review the effect of member & non-member event operations on all club food and beverage services to

members. • Review and update, as appropriate, the efficiency & effectiveness of current point of service, reporting, etc.

software.• Address the compatibility of Food & Beverage financial/budget requirements against short and mid term HOA

budget planning. • ACTION STEP: Working in a partnership effort, the GM and the food and beverage operations management

will take action to facilitate the completion of the aforementioned tasks. The Food and Beverage management is responsible for developing this action plan.

• DEPENDENCIES: Sufficient staffing level, Board and management support, budget.• RISKS: Insufficient resources for staffing, training material, software, and equipment needs. • TIME: Completed end of fiscal year• STATUS: In progress

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Goal #3: Increase Food & Beverage Revenue (draft)

• Strategy 3B: Determine the appropriate balance between member and non-member use of food, beverage and event services. Make the following determinations. Take action when warranted.

• Within the scope of current operations, do a financial analysis of percentage of net income for food and beverage banquet operations vs. resident day-to-day usage.

• Assess resident perception of the effect of event services on use of food and beverage day-to-day services and use of Clubhouse facilities. – Weigh cost benefit of one versus the other.

• ACTION STEP: Working in a partnership effort, GM and the Food and Beverage operations management will take action to facilitate the completion of the aforementioned tasks. The Food and Beverage operations management is responsible for developing this action plan.

• DEPENDENCIES: Board and management support.• TIME: Completed end of fiscal year• STATUS: In progress

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Goal #4 - Increase clubhouse events and functions, corporate outings, banquets, etc. (draft)

• Strategy 4A: ADVERTISING - Develop plan to market and promote awareness of Alderbrook facility.

– Identify target audiences, locally and in the Seattle, Olympia area– Determine the various methods of communication to reach target audiences– Establish incentive plans to encourage use of our facility over alternatives– Work with Resort to see if package deals could be arranged for any groups that want to

come and play/stay.– Encourage member events that will draw larger crowds.

• Action Step: The GM or whomever shall be delegated, will work to complete the above analysis and plan development.

• Dependencies:• Risks:• Time:• Status:

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Goal #4 - Increase clubhouse events and functions, corporate outings, banquets, etc. (draft)

• Strategy 4B – INTERNAL CONTROLS - Strengthen our marketable product, with enhanced banquet menu at attractive prices, appropriate staffing levels, and quality product. Establish a balance between member functions and guest functions, to ensure that members feel ownership while drawing from outside revenue.

– Establish a competitively priced banquet menu. Ensure that it has flexibility to satisfy a variety of tastes.– Determine a balanced percentage of guest use vs. member use, to ensure that members do not feel the lack of

ownership.– Establish daily menu for that offers a wide variety of offerings, including lighter fare, daily specials and Happy Hour

specials.– Determine appropriate staffing levels needed for various sized functions, and hire accordingly.– Ensure that food quality remains at the highest possible standard.– Set up new avenues to provide for guests (food at the turn, F&B cart, snacks in Pro Shop during off-hours, baked

goods in the mornings, etc.)– Do a financial analysis of each event/function to determine how effective it was.

• Action Step: Food and Beverage Managers, in conjunction with the GM, should act on the above steps, as appropriate.• Dependencies:• Risks:• Time:• Status:

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Goal #5: Marketing: Get an edge on our competition (draft)

• Strategy 5A: Make our community more esthetically pleasing for both members and guests / outsiders.

• Action Step: Actively continue the covenant enforcement program which was started in 2010. Make the 2011 focus the exterior appearance of both AGYC and residential properties. Communicate intensions to membership. Review and modify, if necessary, the fining process.

• Time: Review fining process at December 2010 Board meeting. Begin communication in the February Foremast. Send first round of letters in April 2011.

• Status:

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• Strategy 5B: Generate a broad awareness of AGYC with respect to golf, f&b and real estate / membership.

• Action Step: Create a marketing committee. • Time: Discuss at December 2010 Board meeting. If approved, appoint committee

chair by 1/15/2011. • Status:

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• Strategy 5C: Get more “regional” golfers to Alderbrook for the first time. • ACTION STEP: Find a prominent local athlete associated with a cause and organize

an annual regionally promoted tournament. Ask Phil if he would like to cooperate.

• TIME: Begin research and making inquires by 2/1/2011.

STATUS:

Goal #6: Up-Date Covenants and By-Laws (draft)

• Strategy 6A: Review Covenants and By-Laws to identify inconsistencies assuring relevancy for 2012

• Appoint a committee of members with board representation to review covenants and by-laws to identify inconsistencies and identify needed changes

• Present findings to membership for reaction and recommendations• Board act on agreed recommendations• Prepare recommended changes for a general membership vote• Time:

– Committee appointed June 1, 2011– Study recommendations to general membership January 2012– Board Action March 2012– Election to incorporate changes June 1, 2012

Goal #6: Up-Date Covenants and By-Laws (draft)

• Strategy 6B: Enforce adherence to adopted covenants. By-laws and policies• After adoption of the strategic plan each standing committee will monitor existing Covenants, By-

law and policy compliance until the up-dated plan is adopted by the membership. The committees would note violations and submit findings to the General Manager for action. The adjudication committee would continue to serve as the appeal committee if those in violation are not in agreement with action taken by the GM.

• Obtain member voted changes to Covenants & By-Laws• Establish a Board appoint a monitoring committee• Board and committee establish penalties for violations• Penalties reviewed with membership for reaction and recommendations• Board adopt final penalty plan• Violations presented to the General Manager for penalties• Adjudication committee handle appeals• Time:

– Appoint monitoring committee June 15, 2012– Develop Penalties August 1, 2012– Final Board Action September 15, 2012– October 1, 2012 Monitoring Begins

Goal #7: Build on existing to increase revenue

• Build on existing partnerships with the Resort, chamber, corporate, UTA, other associations, Alderbrook Properties, reciprocals, etc. to increase revenue

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Goal #8: Develop & implement a comprehensive security and disaster plan

• Develop & implement a comprehensive security and disaster plan.

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Short Term Strategic Priorities (2-4 Years)

1. Fix revenue stream to address O&M structure dues that does not cover expenses & required reserves2. Increase non-golfer scheduled activities, family & women golfer activities, etc.3. Attract more retiring golfers, baby boomers, etc. to increase revenue4. Mitigate the impact of outside competition, other golf courses, new golf courses5. Address the poor cell phone reception

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Long Term Strategic Objectives (5 Years)

• Sustain golf course improvements• Maximize utilization of property AGYC owns• Address cost of water, PUD 1, water cost

increases to homes & course• Study limited market potential and get

prepared for next generation of buyers

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Can We Get There?

• Current Momentum• People Requirements• Facility Requirements• Community Requirements• Infrastructure Requirements• Financial Requirements• Other?

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What decisions must be made now to get there?

• Short-term budgets• Short-term organizations, personnel,

managerial, etc. decisions & actions• Other?

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Key Future Strengths

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Key Future Weaknesses

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Key Future Opportunities

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Key Future Threats

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Strategic planning draft_5

Documents

useful plan

golf course

words strategic planning

board members

future plans

golf related activities

operating cash

agyc mission statement