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Fitness Industry Association 
           Manchester, England


Extraordinary Club Management For
       Extraordinary Times

                         June 2009
“Welcome”
Opportunity Or Crisis?



 Leaders Lead!
Channels
Club One Owned & Operated Clubs
         San Francisco Bay Area
            Embarcadero Center
             Citigroup Center
               Yerba Buena
               Union Square
              Fillmore Center
                City Center
               Santana Row
              Almaden Valley
               Silicon Valley
               Silver Creek
               Scotts Valley
                   Nob Hill
                   Skyport
                 Brentwood
                  Petaluma

           San Diego Region
               Solana Beach
                 Encinitas
           Carmel Mountain Ranch
                Long Beach
               Mission Valley
Club One ‐ The Company
            Award‐winning experts in fitness and wellness
Founded in 1991
    Committed to developing high-end,
    convenient health clubs
    Aggressive growth through acquisition
    “Top 25 Club Companies in the US” ~ IHRSA
    INC 500
15 owned clubs in California
    San Francisco Bay Area & San Diego Region
    Best of class legacy year after year San Diego Magazine, San Francisco Magazine,
    CitySports, Competitor, Shape, Fitness Magazine
70 managed clubs in 10 states and Canada
    Corporate Fitness Centers with Fortune 500 Partners
       “AOL Vendor of the Year”
       C. Everett Koop Award– “Best Employee Wellness Program in the US”
    Jewish Community Centers/Municipalities
    Commercial health clubs
    Developers
The Golden Rake Story
Once upon a time the president of a company was walking around the 
company with a consultant.  They happen upon a young fellow raking 
leaves, but to both men’s dismay, the gardener is using a rake with only 
three teeth.  The president says, “What are you doing”?  The gardener 
replies, “I’m raking leaves.” The president asks “Why are you using that 
rake, you’re not picking up many leaves”?  The gardener states, “This is 
what they gave me.” Finally the president says, “Why didn’t you get a 
better rake”?  The gardener replies “That’s not my job.” As the president 
walks away he is visibly angry.  He states as a matter of fact that this is a 
perfect example of what is wrong with the company.  People complain 
about not having the right tools, parts, drawings, and everything else.  This 
shows the lack of urgency the president feels is dragging the company 
down.  He asks out of frustration “How are we every going to make it, if we 
can’t even give someone a decent rake”?  “I’ve got to find that supervisor 
and be certain the gardener gets a better rake.”
The Golden Rake Story
The consultant asks “Are you certain the supervisor is responsible”?  
“Absolutely!” retorts the president.  “His job is to make certain his people 
have the right tools.” The consultant offers, “If the supervisor is 
responsible, how would you solve this problem”?  The president says 
“More training, better selection, maybe a new supervisor.” The 
consultant counters “Are those actions going to get you where you need 
to be”?  Puzzled the president says, “What do you mean by that”?  The 
consultant says, “What is it going to take to turn this place around”?  
What do you want to create”?  The president replies  “Well now, if I’m 
going to be a hands‐on leader, if I’m going to demonstrate a personal 
sense of urgency, if I’m going to live the vision, I guess I’ll go and get the 
rake.” The consultant says, “Whoa, is your getting the rake really going to 
fix the problem”?  The president says, “If every person in this company 
doesn’t get a sense of urgency about meeting their commitments, we’re 
in big trouble.” “Okay” said the consultant “If everyone must be 
committed to doing his/her job no matter what it takes, then who must 
take responsibility in the case of the gardener and the rake”?  
The Golden Rake Story
The president smiles and says, “The gardener has to be responsible.”
“He’s the only one that can make sure he has the right rake.” He realizes 
that the supervisor and ultimately every individual is responsible for 
building commitment, but not chasing rakes.  It’s not about chasing rakes, 
it’s about commitment.  Every person who saw the rake is responsible.
Begin with the End in Mind




Be          Do         Have
See         Do          Get
Creating Value

             Useful


                          Value Creation




Usable                Desirable
Why are you in business?
Club One Fitness Manager 
                        People?
Where are your People?


V
A
L
U
E
S




            PERFORMANCE
What Are You Doing Differently?

•   Sales
•   Retention
•   Programming
•   Expenses
What Can You Do?
•   Wage Freezes
•   Hiring Freezes
•   Pay Cuts
•   Staff Reductions
•   Expense Reductions
•   Contract Reductions/Eliminations
What Are Your Metrics?
Jack Welch from GE said:  

“If I had to run a company on THREE measures, 
   those would be…”

       •   Customer Satisfaction
       •   Employee Satisfaction
       •   Cash Flow
NASA

           JFK was visiting NASA.
He stopped to speak to a man holding a mop…

        JFK asked:  “What do you do”? 

The man responded:  “I’m helping to put a man 
              on the moon, sir.”
Member Experience

          Touch
           Point




          Product

 Touch              Touch
  Point              Point
Designing the Member Experience

        Experience IS the Product!

  Good Design when well done is invisible

          Like Air Conditioning –
  when it’s right you don’t think about it
The Member Journey…
Who Packed Your Parachute?
An excerpt from Aim For The Heart by Tom Mathews

As a leader, do you honor and appreciate the power of WE? Do you stop to 
thank and recognize the members of your team? Do you consistently show an 
attitude of gratitude?
I recently read a great story about Captain Charles Plumb, a graduate from the 
Naval Academy, whose plane, after 74 successful combat missions over North 
Vietnam, was shot down. He parachuted to safety, but was captured, tortured 
and spent 2,103 days in a small box‐like cell.
After surviving the ordeal, Captain Plumb received the Silver Star, Bronze Star, 
the Legion of Merit and two Purple Hearts, and returned to America and spoke 
to many groups about his experience and how it compared to the challenges of 
every day life.
Shortly after coming home, Charlie and his wife were sitting in a restaurant. A 
man rose from a nearby table, walked over and said, "You're Plumb! You flew 
jet fighters in Vietnam from the aircraft carrier Kitty Hawk. You were shot 
down!"
Who Packed Your Parachute?
Surprised that he was recognized, Charlie responded, "How in the world did you 
know that?" The man replied, "I packed your parachute." Charlie looked up with 
surprise. The man pumped his hand, gave a thumbs‐up, and said, "I guess it 
worked!"
Charlie stood to shake the man's hand, and assured him, "It most certainly did 
work. If it had not worked, I would not be here today."
Charlie could not sleep that night, thinking about the man. He wondered if he 
might have seen him and not even said, "Good morning, how are you?" He 
thought of the many hours the sailor had spent bending over a long wooden 
table in the bottom of the ship, carefully folding the silks and weaving the 
shrouds of each chute, each time holding in his hands the fate of someone he 
didn't know.
Plumb then began to realize that along with the physical parachute, he needed 
mental, emotional and spiritual parachutes. He had called on all these supports 
during his long and painful ordeal.
As a leader, how many times a day, a week, a month, do we pass up the 
opportunity to thank those people in our organization who are "packing our 
parachutes?"
20 Basics
1.   All staff members should be in full uniform.
2.   All Fitness Program offices should be immaculate.
3.   All offices need to be clear of clutter and professional.
4.   The web site is your responsibility to keep current with 
     content.
5.   Maintain promotional materials in the club – clean copies. 
6.   Manage sales on a daily basis.
7.   Manage your payroll.
8.   Ownership & Accountability, Relentless attention to detail, 
     Responsiveness, Proactive Hospitality and an overall sense 
     of urgency.
20 Basics
9. Only Handle It Once (OHIO).
10. Live the Mission (Purpose), Vision, Values, and 
    Foundations.
11. Meet with each team member regularly.
12. GM contacts each new member personally to welcome him 
    or her. 
13. Walk your club, spend time at your front desk, and learn. 
14. Every new member needs to go through an Orientation 
    Process. 
20 Basics
15. Attrition rate at or below 35%! 
16. We should connect three times with every member each 
    visit. 
17. We need to embrace our sales automation software and 
    CRM. 
18. Our clubs must be ready, clean and maintained every day.
19. Focus on Non‐Dues Revenue per member.  Programming.
20. Perfection is the goal! Get Members / Keep Members.
Creating The Value Proposition: Wow or Delight

         People Are Unfit And Would Like To Be Fit & Healthy


                     Our Purpose - Some Version Of:
                   Improve The Quality Of People’s Lives


The Organization                                           The Club Team

                              The Member



    Enrollment                                               Retention

                               Connection
Members For Life

                       Retention Model



             Every Thing You Do – Every Touch Point


Enrollment                                             Connection

               Intervention Of At Risk Members


      On-Boarding                                Loyalty
Prospect Enrolls
Systematic Enrollment
On‐Boarding – Getting Started 
               The Right Way
Day 1 & 2 (if possible)


  •   Fitness Goals
  •   Lifestyle Interests
  •   Fitness Assessment
  •   Personality / Motivation
  •   Age
  •   Orientation
  •   Customized Program Design
On‐Boarding
Getting Started The Right Way
Days 0-30 (30-day check-up)


The beginning is critical
Connection




Area of Play
Connection
•   Where do I fit in?
•   I may want to play NOT work
•   I need to be comfortable
•   I need to know there are people like me here
•   I need to feel welcome and accepted
•   I need to NOT be judged
•   I need to be me
•   I need to be my best self not compared to others
•   I want to engage…
Programs That Connect
• 4‐6 weeks (have a sense of closure)
• Small groups (4‐6 people)
• Why Pilates works
• Affordable sustainable price point ($10‐
  $25US per session)
• Community building
• On‐going progression with 
  group
Life is good

You are engaged
Intervention / Support
•   Life happens / Stuff gets in the way
•   Rationalization makes it easy to stop
•   I’m hurt ‐ I’m tired ‐ I’m busy ‐ I’m stressed
•   My family ‐ My job ‐ No time
•   Help ME!
•   Save ME!
•   Support ME!
•   Hold ME accountable!
•   Recovery
Member Goes Missing
Stops Coming To The Club
Life Happens




          Stuff gets in the way
Why People Leave
                                      Product
 Other Interests   Move   Die
                                   Dissatisfaction
      5%           3%     1%
                                        14%
                                                     Competition
                                                        9%




  Attitude -
Indifference by
  Employees
      68%

                                US News & World Report
Save ME
Do you care?
Recovery

•   Recovery management system
•   E‐mails
•   Calls
•   Incentives
•   Letters
•   Service Desk Prompts
I’m Back!


      Why did I return?
You Mess UP




Why did you let this happen?
Resolve My Issue!
            Unhappy Customers Who
                Remain Faithful

100
 90
 80
 70
 60
 50
 40
 30
 20
 10
  0
      No Complaints   Unresolved    Resolved      Quickly
                      Complaints   Complaints    Resolved
                                                Complaints
You Recover and Build Loyalty

Wow – you rock!
Loyalty
Constant daily challenge – never done


    •   I’ve gotten / am getting results
    •   I love the staff
    •   I love the club
    •   I have friends here
    •   I belong here
    •   I am a part of this community
    •   This is my lifestyle
    •   Others have got to experience this (Delight)
    •   This is a part of who I am (BE)
I got results!

I’m feeling good
Your People Are Wonderful
   They helped me and 
 supported me and I like 
          them
There are others like me here
I’ve made friends and connections with like minded people
I belong to a community
Lifestyle is ME
I’ve got it and I like it!
This is MY CLUB 




I belong and I’m not leaving!
Others Have Got To Experience This



 Promoter / Raving Fan
Optimal
The WOW Factor, Optimization of member          Member
experience
                                               Experience

1st impression, Friendliness, Training,
Membership Services, Service Desk Efficiency
                                                 People

Group Fitness, Personal Training, One Start
Specialty/fee-based programs
                                                Programs

Cleanliness; Upkeep, Housekeeping               Facilities
Amenities, Maintenance, Equipment
“I hope this was helpful”
Contact Information


Bill McBride
Chief Operating Officer
Club One, Inc.
Bill.McBride@ClubOne.com
Bill_McBride@Comcast.net
(Bill underscore McBride@Comcast.net)

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