Webinar Zero V4

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  • Good afternoon, My name is Mike Vogt. I am a Certified Golf Course Superintendent, and I have 26 years of experience as golf course superintendent, and I have been a GM at a private club in Illinois for 4 years (GMs, I feel your pain). Over the past 8 years I have been working with the protocol of zbb from golf course maintenance. These practical ideas will translate to any area of private club management. I would like to share what I have learned over the years with you through this webinar.
  • Webinar Zero V4

    1. 1. Zero-Based Golf Course Budgeting: A Model for Increased Effectiveness Michael Vogt, CGCS, CGIA Bill McMahon, Sr., AIA, OAA May 15, 2009
    2. 2. April Golf Survey Review <ul><li>Course distances: </li></ul><ul><ul><li>Range - 6,001 to 7,200 yards. </li></ul></ul><ul><li>Annual maintenance budgets for 2009: </li></ul><ul><ul><li>Range - $550,000 to $1,669,000 </li></ul></ul><ul><ul><li>Average - $1,081,000 </li></ul></ul><ul><li>Annual rounds played: </li></ul><ul><ul><li>Range – 15,750 to 41,000 </li></ul></ul><ul><ul><li>Average – 24,800 </li></ul></ul>
    3. 3. Survey Review <ul><li>3 clubs report no change in golf rounds played over last 2 years </li></ul><ul><ul><li>2 clubs reported rounds down about 12%. </li></ul></ul><ul><li>Five courses rated condition – “Best ever been” </li></ul><ul><ul><li>3 courses rated condition – “Good” </li></ul></ul>
    4. 4. Survey Review <ul><li>Biggest challenges being faced: </li></ul><ul><ul><li>Fuel prices </li></ul></ul><ul><ul><li>Irrigation costs </li></ul></ul><ul><ul><li>Weather </li></ul></ul><ul><ul><li>Timing of expenditures for cash flow </li></ul></ul><ul><ul><li>Trying to establish maintenance on a national quality level </li></ul></ul><ul><ul><li>Selling members/justifying $1 million budget </li></ul></ul><ul><ul><li>Increasing labor costs </li></ul></ul><ul><li>Average percent of labor cost in maintenance budget is 41% to 51%. </li></ul>
    5. 5. The Golf Course Budget <ul><li>A golf course budget should be the numerical expression of the way the superintendent manages and accomplishes the goals of the club. </li></ul><ul><ul><li>Club goals of quality, environmental impact, amount of play, tournament impact, etc. </li></ul></ul>
    6. 6. Dramatically Different Way to Budget <ul><li>Set of established, consensus-based golf course standards. </li></ul><ul><li>Discover the value of “cycle-times.” </li></ul><ul><li>Base labor on hours needed to accomplish job tasks. </li></ul><ul><li>Plan all routine maintenance activities. </li></ul>
    7. 7. Benefits of Zero-Based Budgets <ul><li>Provides sufficient resources based on standards and current needs. </li></ul><ul><li>Identifies new processes and procedures to accomplish goals. </li></ul><ul><li>Challenges superintendents to find cost-effective ways to improve operations. </li></ul><ul><li>Improves communication between superintendent, manager, committees, Board and key staff. </li></ul><ul><li>Measures key metrics involved in course maintenance. </li></ul><ul><li>Eliminates overinflated budgets. </li></ul>
    8. 8. Golf Maintenance Standards <ul><li>A detailed set of course maintenance standards must be defined with input from superintendent, committee, general manager and board of directors. </li></ul>
    9. 9. Golf Course Standards – Example: Sand Bunkers <ul><li>Sand depth 4 inches minimum, 6 inches maximum </li></ul><ul><li>Edge cleanly defines hazard </li></ul><ul><li>Maximum 4 inch, minimum 2 inch lip in direction of play </li></ul><ul><li>No edge lip in direction of tee or perpendicular to direction of play </li></ul><ul><li>Weed Free </li></ul><ul><li>Free of debris (sticks, leaves, stones, grass clippings) </li></ul><ul><li>Rakes positioned, at minimum, every 40 feet </li></ul><ul><li>Sand raked every day play is scheduled </li></ul><ul><li>Chemical edging with Primo, growth regulator </li></ul><ul><li>No standing water </li></ul><ul><li>Accomplishing a concise set of standards takes the guess-work out of golf course conditioning and the need for unanticipated resources. </li></ul>
    10. 10. Assembly of Golf Course Budget <ul><li>Based on predetermined course maintenance standards, labor and purchases can be forecasted. </li></ul><ul><li>Labor, (>40% of total) being the largest portion of the budget is the starting point for the formulation of the Zero – Based Budget. </li></ul>
    11. 11. Assembly of Budget <ul><li>Roster of staff persons assembled into workforce pay rate and available hours per day. </li></ul>Labor Allocation Example
    12. 12. Assembly of Budget <ul><li>Cycle-Time tasks per day </li></ul><ul><li>Full time equivalents per day </li></ul><ul><li>Total hours available and needed with deficient or excess per day and per week </li></ul>Task Man-Hour Allocation Example
    13. 13. Managing the Labor Budget <ul><li>Per week hourly goals managed on a timely basis by the superintendent. </li></ul>Goals Example
    14. 14. Managing the Labor Budget <ul><li>Hourly scheduling helps to eliminate overtime. </li></ul>Hourly Scheduling Example
    15. 15. Managing the Labor Budget <ul><li>Change schedule as needed to maximize efficiencies and keep overtime to a minimum. </li></ul>Avoiding Overtime Example
    16. 16. Building the Labor Budget <ul><li>Assign full and part time positions based on ability, pay scale and hours. </li></ul>Assigning Staff Persons Example
    17. 17. Building the Labor Budget <ul><li>Hours are assigned to each member of the staff based on job tasks needed to maintain club’s quality standards. </li></ul>Allocating Labor Hours Example
    18. 18. Building the Labor Budget <ul><li>Overtime is assigned as a dollar figure not hours. </li></ul><ul><li>Overtime should never be though of as needed, expected, entitled or necessary. </li></ul>Allocating Labor Dollars Example
    19. 19. Other Budgeted Areas Identified <ul><li>Equipment leases </li></ul><ul><li>Repair and maintenance </li></ul><ul><li>Supplies and tools </li></ul><ul><li>Uniform and laundry </li></ul><ul><li>Travel and administration </li></ul><ul><li>Special projects </li></ul>
    20. 20. Budget Analysis <ul><li>The above shows budget figures compared to size of course and cost per-hole . The budget analyses are important metrics for comparison in subsequent year budgets. </li></ul>
    21. 21. Zero-Based Budget <ul><li>In the end a budget is created based on expectations, needs and goals, not on history and inflated line items over a series of years. </li></ul><ul><li>A true budget / business plan is a reflection of the coming years maintenance plan. </li></ul>
    22. 22. Managing the Labor Budget <ul><li>Knowing “Cycle-Times” for routine tasks is important in formulating labor requirements. </li></ul>Example
    23. 23. Zero-Based Golf Course Budgeting: A Model for Increased Effectiveness Let Us Help You With Your Golf Course Budgeting Challenges Michael Vogt, CGCS, CGIA Bill McMahon, Sr., AIA, OAA

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