This CMI Workshop provides an opportunity for club management professionals to participate in a deep dive into the data-driven private club finance and business model. The session will be organized around the following modules:

Introduction and Context

A summary of sixteen years of research and experience working with over 800 clubs across North America. Attendees will explore the reason getting “finance right” is so difficult and discuss the opportunities and challenges for managers and finance executives. This module will lay the foundation of why financial competence is critical for a manager’s career and provide a view of the industry’s future approach to finance. It will also address a review of the income statement and balance sheet for those needing a bit of a brush up on accounting.

The Purpose of the Operating Ledger and its KPIs

A fact-based, data-driven view of the operating ledger will illuminate the purpose of the operating ledger including new, mission critical research. Once the purpose is established, the operating ledger KPIs that must be monitored in every club and the associated concepts will be addressed. Every general manager, department head and financial executive must be in confident command of these concepts and KPIs.

The Purpose of the Capital Ledger and its KPIs

Data and research leave no doubt the capital ledger is the primary financial driver in every club. This module will draw a clear, data-driven link between the capital ledger, the balance sheet, the member experience and the initiation fee. All of which are central concepts that club professionals must confidently command, along with the associated KPIs. 

Comprehensive Capital Planning

Given the capital ledger is the primary financial driver in every club, the mission critical nature of comprehensive capital planning becomes clear as well as how poorly, overall, the industry does at capital planning. This module will address a framework establishing the tenets of comprehensive capital planning and how the capital plan and strategic plan must be integrated. Too often, without a long-term vision and a complimentary comprehensive capital plan clubs turn to reactive debt or reactive assessments.  Proper planning will avoid these reactive measures while assuring every member contributes their “fair share” of capital over time which is the root of sustainable financial outcomes.

Attendees are asked to bring audited financial statements; their fixed asset register and prior to the session submit the data necessary to generate the Net Worth and Balance Sheet benchmark for their club. Each module will be “hands on,” as attendees will be calculating the KPIs for their own club as the day progresses.