Peter Drucker first popularized the concept of management by objectives in, “The Practice of Management.” Management by objectives is the process of defining specific objectives within an organization on the premise that management will achieve each objective. Most club leaders are well-schooled on the idea of SMART (specific, measurable, assignable, realistic, time-related) goals, as introduced by George T. Duran. And, yet few clubs are governed by concise and measurable goals.
Five reliable steps that guide goal setting for private club leaders are:
- Specific. State clearly what aspects of the club are to be addressed. When setting strategic direction, be precise enough that future club leaders will know what the goal was meant to be and why.
- Measurable. The management team and your fellow members require metrics that can be monitored to celebrate successful accomplishments and to course-correct for goals not being achieved.
- Assignable. Who will be responsible? Which club committee is charged to monitor and shepherd this strategic initiative? Which member of the management team is obliged to achieve this objective through his or her efforts?
- Realistic. Identify the resources currently available and designate the metrics that will be used to guide the board and management team in achieving this goal.
- Time-related. Develop a timeline identifying at what point the successful results be required and measured.
Some not-so-SMART goals one frequently sees in private clubs include:
- “Be the finest club in the United States.” While aspirational and worthy of the best efforts of many club leaders, there is no specificity or measurable outcome involved.
- “Achieve annual membership growth.” As critical as members are to every club, there is a need for more detail and consideration for evolving market conditions in support of the recruitment and retention of members.
- “Be profitable in every club department.” While overlooking the notion that the primary business of the club is member joining fees and monthly dues, many club leaders lose their way thinking that a non-for-profit enterprise should be “profitable.” Most club amenities in most clubs require subsidy from member dues.
Some useful goals to be considered for your club include:
- Achieve and sustain member satisfaction above a specific percentage (select your own level) based upon regular member survey metrics. (“Regular” can suggest quarterly, semi-annually, or annually.)
- Optimize member engagement to involve all members in programs and activities by exceeding a specific percentage (select your own level) participation levels for all member programs.
- Make and sustain the club as an economically sustainable enterprise on an annual basis. (Requires capital plan, funding plan, and ongoing understanding of member expectations.)
An excellent example of management by objectives was the call-to-action by President John F. Kennedy when he declared, “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to earth.”
The specifics:
- What? Landing a man on the moon and returning him.
- When? This decade.
Goals and goalsetting are important responsibilities for club leaders. The most important takeaway is understanding what goals and what measures will produce results that are best for your club.
Henry DeLozier is a principle at GGA Partners. He can be reached at [email protected].