Northern California Golf Association & Poppy Holding, Inc. Five Year Strategic Plan June 1, 2007 December 31, 2011
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1 Northern California Golf Association & Poppy Holding, Inc. Five Year Strategic Plan June 1, 2007 December 31, 2011 MISSION NCGA - To support and promote the game of golf in Northern California and to enhance the knowledge, enjoyment and participation of NCGA members. Poppy Holding, Inc. - To provide top quality services, programs and facilities for a good value to the Northern California Golf Association and the golfing public. VISION The Northern California Golf Association will provide the leadership to grow the game in Northern California. The NCGA will assist in making golf more affordable, inclusive and accessible. The NCGA will foster life-long enjoyment of the game by encouraging expanded participation, promoting social interaction, providing innovative instructional programs and offering a full range of competitive events for golfers of all ages and abilities. NCGA owned, operated and sanctioned facilities will be the benchmark in the golf industry for value and the quality of the golf experience. BACKGROUND The Northern California Golf Association was formed in 1901 by five clubs - Menlo CC, Oakland GC (now Claremont CC), Presidio GC, Linda Vista (now San Jose CC), and San Francisco GC - with the sole purpose of participating in the Pacific Coast Amateur Championship. From that humble beginning, the NCGA has grown to an association consisting of 400 regular clubs and more than 850 associate clubs with a total membership of approximately 175,000 encompassing the area from the Oregon border to central California and east into Nevada. The NCGA is recognized as one of the largest state/regional golf associations in the world. Although the NCGA corporate office is located at the Poppy Hills Golf Course in Pebble Beach, the association depends on a multitude of volunteers, including an active board of directors, who have offered their time selflessly throughout the years. In 1986, the NCGA opened Poppy Hills Golf Course in Pebble Beach, the first course in the United States to be owned and operated by an amateur golf association. Poppy Hills has played host to several prominent tournaments, including the AT&T Pebble Beach Page 1 of 10
2 National Pro-Am. It consistently ranks among the top public courses throughout the United States. In 1996, the association continued to grow with the addition of Poppy Ridge Golf Course in Livermore. Poppy Ridge is easily accessible to NCGA members as approximately 90,000 NCGA members live within one hour of the course. In 2000, the property companies for each course merged to form Poppy Holding, Inc. The NCGA Foundation, a separate 501(c) (3) charitable organization, was founded in 1989 to promote life skills and values through the game of golf to deserving youth in communities throughout Northern California. The U.S. golf community, with approximately 30 million golfers, identifies 12.5 million core golfers who play eight or more times per year. It is estimated there are 1.3 million golfers in Northern California with 650,000 identified as core golfers. Core golfers are responsible for 91% of all rounds and 87% of all spending industry-wide. The national participation rate for ages 6 and older is 11%, which is only slightly ahead of the 10% for Northern California. However, participation and growth has been stagnant since The largest national participation increase over the last 20 years has been with the 5-17 age range. Private and public facilities vary by region but 27% of all facilities nationwide are private and 73% are public, which holds true in Northern California as well. Since 2001, both nationally and in Northern California, facility growth has been stagnant. Around the country in 2006, there were more closings than openings. Since 1990, supply has consistently outpaced demand but a correction that began in 1996 continues today. CHALLENGES As the NCGA and Poppy Holding, Inc. recognize both the external golf industry challenges as well those specific to the association, the strategic plan is designed to address those challenges as the Association works to broaden its scope in promoting the game of golf in Northern California. EXTERNAL o Affordability / Access o Stagnant participation o Time to play / intimidation o Limited leisure time o Recreational alternatives o Rising operational and participation costs o Inadequate labor pool o Water supply/cost o Future economic uncertainty o Course supply/demand o Competition/Discounting INTERNAL o Declining NCGA membership o Fewer rounds at Poppy courses o Competing handicap providers o Brand / awareness o Perceived membership value o Clubs control pricing / experience o Rising costs for NCGA / Poppy Holding o Balance of food and beverage operations between golfers and non-golfers o NCGA tournament course use Page 2 of 10
3 GOALS The following goals are established to achieve the missions of NCGA/Poppy Holding: 1. Promote and support golf in Northern California 2. Strengthen the NCGA 3. Add value to NCGA membership 4. Increase participation at NCGA facilities 5. Grow the NCGA Foundation and junior golf programs 6. Provide the human resources and the infrastructure to meet our goals 7. Increase revenue and revenue sources Goal 1 Promote and support golf in Northern California In order to provide leadership and contribute positively to the golf industry in Northern California, the NCGA will develop, promote, support and foster programs and relationships designed to benefit the game of golf. o Collaborate with appropriate golf organizations to protect and grow the game o Work with national golf organizations to help implement programs such as Play Golf America and Golf 20/20 o Develop innovative programs to broaden the exposure to golf, increase accessibility, improve skill levels and enhance the enjoyment of the game o Introduce and attract the underrepresented to golf o Collaborate with senior, women and junior golf associations to enhance participation opportunities and the quality of their members golf experience o Assist Member clubs and golf facilities in keeping golf affordable o Partner with and support the California Alliance for Golf (CAG) as the advocate for environmental/water issues and the promotion of golf o Stay abreast of and influence golf related governmental initiatives and proposed legislation o Educate and market golf with the various hospitality agencies o Partner with the USGA and the GCSAA to help educate and assist with turf management issues o Establish a resource center for golf related information in Northern California Page 3 of 10
4 Goal 2 Strengthen the NCGA The NCGA must grow its membership and golfer participation in order to have the resources to further its mission. The NCGA will engage its Member clubs in a dialogue to develop a better understanding of how it can add value to NCGA members as well as build and increase NCGA brand visibility. As the NCGA grows and increases its resources it will become a stronger influence in the golf world in promoting enjoyment of the game. o Understand our Member clubs and individual members and their needs o Promote our Member clubs and support their growth o Attract 50 new Associate clubs by 2011 o Expand eclub membership to 20,000 by 2011 o Create and execute an inclusive membership development plan o Develop and execute marketing plans for NCGA / Poppy Holding o Build and increase brand visibility o Develop and execute an aggressive Communications plan o Increase NCGA individual membership to 240,000 by 2011 o Make member management tasks easier by providing eclubhouse o Broaden educational services Page 4 of 10
5 Goal 3 Add value to NCGA membership The NCGA must provide the core services essential to enhance the experience of our membership to include tournaments, handicapping, course rating, publications, access to championship golf and education. Expansion and improvement of these core services will improve our relevance to our Member clubs as well as individual members. o Provide a comprehensive tournament program for players of all ages and abilities o Offer the best handicap service available o Promote USGA Handicap Certification policies o Ensure consistent course rating services in our region o Provide our membership with the highest quality educational programs, including an interactive website o Ensure turf/environmental/management advisory support is available to our Member clubs o Provide members with additional golf-related facilities o Create a NCGA affiliate course program o Offer free clinics for NCGA members o Expand and promote access to private clubs/resorts through member-only outings o Provide free club fittings at Poppy Hills and Poppy Ridge o Introduce the NCGA Advantage card with significant member benefits and discounts o Make available and market discounts for lodging on the Monterey Peninsula o Publish the best regional golf publication Page 5 of 10
6 Goal 4 Increase participation at NCGA facilities Through constant evaluation of NCGA owned, operated and affiliate facilities, an improved experience by members and guests will result in membership loyalty, increased skill levels as well as an increase in rounds played. o Adopt and implement a customer intimate philosophy o Improve Poppy course condition, design and playability o Create and execute Poppy facility master plans o Enhance the total clubhouse and golf experience at Poppy Hills and Poppy Ridge. o Provide an educational and historic experience at the NCGA headquarters o Provide an affordable and high quality product o Protect member accessibility to NCGA-owned courses o Provide player development, fitness, education and instruction facilities o Retain the AT&T Pro-Am and attract other major events o Achieve a top 100 ranking for Poppy Hills GC o Increase rounds at Poppy Hills and Poppy Ridge to 120,000/year Page 6 of 10
7 Goal 5 Grow the NCGA Foundation and junior golf programs The NCGA Foundation provides resources to help introduce youth to the virtues and values of the game, support the development of their interests and skill levels, and promote their lifelong enjoyment of the game. The Foundation will raise the visibility of the NCGA through its youth development and grant making programs and through collaboration with other organizations with related missions. o Provide the support and resources for the NCGA Foundation to succeed o Create and execute a NCGA Foundation strategic plan o Create and execute a comprehensive business plan o Collaborate with the various national, regional and local youth golf programs to expose youth to golf, develop life skills and a passion for the sport o Create and implement a comprehensive junior golfer development program o Grow the NCGA Foundation endowment to $10,000,000 by 2012 Page 7 of 10
8 Goal 6 Provide the human resources and the infrastructure to meet our goals Highly trained and qualified employees, board members and volunteers are essential to the implementation of the strategic plan and the fulfillment of the missions of the NCGA/Poppy Holding. o Evaluate staffing levels at NCGA/Poppy and adjust as appropriate o Attract, coach, grow and retain the highest quality employees o Develop a culture of providing customer intimate service o Provide employee education/coaching to develop industry leaders o Properly motivate, recognize and compensate employees o Attract the most qualified and motivated board members reflecting the diversity of our current and future membership o Recruit, educate, retain and recognize volunteers o Provide resources to achieve our mission safely, professionally and efficiently o Assess needs and provide for efficient IT support and reliable information availability Page 8 of 10
9 Goal 7 Increase revenue and revenue sources In addition to revenue growth from increased membership and play at NCGA facilities, the development of other potential revenue sources will allow the Association to support initiatives that expand value to its membership. o Increase our investment account by at least $1 million each year o Increase spending per round at NCGA facilities o Create additional revenue streams o Explore emerging golf-related opportunities o Pursue partnership opportunities o Utilize and leverage equity o Maintain 4-8% net return o Retain three-months cash reserve and invest additional income in the portfolio Page 9 of 10
10 GUIDING PRINCIPLES As the NCGA endeavors to accomplish the goals necessary to fulfill its mission, the following principles will serve to focus the organization on its purpose as it makes wise and ethical decisions. Promise To do everything we can to grow and promote golf. Values We will accomplish our promise in a fun but professional manner, utilizing our expertise, innovation, efficiency and organization, while demonstrating passion, integrity, enthusiasm, perseverance, accountability and great respect to tradition and service. Customer/Member Intimate Philosophy We will serve the varied needs of the diverse Member clubs and individual members by anticipating and exceeding their expectations. CONTACT Northern California Golf Association / Poppy Holding, Inc Lopez Rd. Pebble Beach, CA (CA only) (831) fax Page 10 of 10
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