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Legendary Golf Management Warning:  Proceed with Caution. The following information on performance driven compensation is hazardous to anyone who does not want to be held accountable! Are you Performance Driven?      

I am amazed at the number of clubs and resorts I speak with who fall far short of creating expectations and accountabilities in their businesses for their key management personnel.  Business is about producing a bottom line in accordance with Golf Clubs For Sale the experience your members and guests want and are willing to pay for.  And yet when I ask about specific goals and staff compensation, I find that in almost all cases, the staff is operating under what I term an entitlement system for compensation. An Entitlement System for Compensation      So, what is an entitlement system?  Well it's basically a system that pays for doing little more than coming to work and getting through the day  It has nothing to do with the actual quantitative or qualitative performance a key staff person is able to produce, or not.  Key club personnel such as the general manager and department managers get paid a salary irrespective of the business outcomes.  Whether the performance is outstanding or horrific, the pay is the same. An Alternative:  Performance Driven Compensation      The alternative is a pay for performance compensation plan! And once a sound pay for performance compensation plan is Taylormade R9 Fairway wood put in place, an amazing transformation occurs!  The transformation is sudden and impactful!  It creates a buzz in the club.  

A quarterly payout.  A sales plan for every revenue department.  Formal quarterly reviews.  Minimum hurdles usually beginning at achievement of 95% of plan to get any bonus (does not apply to sales people).  Overachievement pay available when financial results are exceeded.  Performance review modifiers for payout.  An Example, albeit an ill fated one!      And the plans have to make sense.  For example, I spoke with the General Manager of a course operated by a management company who believed his club had performance driven compensation plans.  In chatting further with the General Manager, he explained that Mizuno JPX AD Series plans were in place for most departments and were being developed for others.  He offered an example as a key department manager having $10,000 of bonus potential based on the revenues of his department for the year.  Ok so far.       Then it went awry.  The club is having an off year and the total revenue budget is $1 million.  The General Manager said that they would be lucky to get to $800,000.  I naturally assumed that missing the annual goal by 20% and by more than $200,000 would result in no bonus.  

And I can cite countless more silly examples! Three Types of Employees      There are three types of employees.  Those who MAKE things happen, those who WATCH things happen, and those who WONDER what happened?    And if you implement a performance driven compensation plan it will quickly become Ping G15 Irons apparent who buys in and is ready for a challenge and ready to have their performance measured and who does not.       The Performance MAKERS will display immediate interest, begin pulling reports, become excited about having a specific goal that will be measured, and begin looking for better ways to do business.       The uninvolved WATCHERS will complain about how it's not fair, spend lots of time trying to explain why it's not fair, and quickly disengage.       And the clueless WONDERERS, well, they will just fade away.       A performance driven compensation system will quickly eliminate the WATCHERS and WONDERERS and you will within a short period of time have a solid club/resort team of Performance MAKERS! So, what will it be at your Club or Resort?      So, what does compensation look like Callaway X-24 Hot Irons at your club, course, or resort?  As an Owner, Board Member, or General Manager are you supporting your staff through their weekly pay just for showing up, much like an allowance for a dependent?  Or, is your compensation designed to drive performance, engage all of your key personnel, and have them as a partner in your success?