To Mr. Mahaffey, about golf course management companies:
CONS - I have worked with my share of clubs over my 33 years as superintendent, general manager and independent consultant and know for a fact a board or even the best general manager does not get as deep into the business of managing a golf course as a Troon, Kemper, Club Corp, American Golf or Valley Crest. Each task and hour has to be accounted for and reported each week. Methods and procedures are clearly defined. Add to that many management employees are compensated extra for achieving below budget expenditures and above budget revenues. Most golfers would want a leadership at their club to be motivated by very satisfied members and a finely conditioned course. Remember private clubs are in the business of collecting dues other golf entities relay on rounds, therein lies the difference.
PRO - As for knowledge base just think if twenty good superintendents put their efforts into solving particular golf maintenance problem how much better would the outcome be? That’s the upside of management companies.
PRO - I not saying self-managed golf courses are always bad. However, take an example of managing one fast food franchise or 50; you’ve cut your chances of poor revenue substantially, by the worst performers being helped out by the best. That’s the idea behind management firms having many courses in one geographical area. Add to that if you found a great method to accomplish production work like mowing, fertilizing or spraying, you could incorporate this method across your platform.
I would imagine that no golf business WANTS to lose money or better put-waste money. For-profit courses in the same area can also cross-market (overflow, tournaments, outings, and specials) and are keenly aware of not marketing against a sister course. Even the ultra-rich clubs don’t want to piss money away on methods and product without a reason or return.
CON - Morale is a hard one to put your finger on. Imagine if you’re working for a large company and greater than 50% of your golf course budget is labor. A management company is going to go after the low-hanging-fruit; how long can a crew operate without the incentive for benefits, wage increases, or vacation time? Consider that you have to crawl out of bed at 4 am, work in the heat and rarely get a wave or a pat-on-the-back for job well done! These conditions in time will cause a revolving door or low morale prior to the crew leaving. What are the costs to train a new golf maintenance staff? Employees are often treated as a simple commodity.
PRO - Management companies work because owners or other stakeholders do want to or can’t manage a golf course. I have worked with many golf courses as a consulting superintendent, several of these courses had “grass problems” and “people problems”; if the superintendent would have talked to local talent I would not have been called in. Each course is unique (more industry speak). There are some processes that are proven to work, if a superintendent is a good “grass grower” but has a marginal grasp of common business practices that superintendent is at a great disadvantage, wouldn’t you say?
PRO - Today with hundreds of chemicals and fertilizers at the superintendent’s hand, along with increased demands for better conditions for less or equal money the superintendent must be far better at business and agronomy than just 10 years ago. If you can’t or won’t hire the best superintendent the choice may be a management company.
CON - I worked with the largest management company in the world (you guess at this one) and I still have a bad taste in my month 6 years later. I now make a good living consulting with golf courses on many operational, strategic and agronomic issues in the U.S., public, private and municipal.
When I began my career in the 1970’s there were no management companies, greens were mowed at three sixteenths of an inch too!
Again, not every course or club performs best or suffers from a management company, it’s more dependent on a vast number of situations, too numerous to be addressed here. They are a growing part of the industry, whether we like them or not, the management company is here to stay.
This is a great topic, with many correct answers.