“Social Net Worth” and Its KPIs

Gregg Patterson President and Founder

“Tribal Magic”

Manager Sue’s Finance Committee at The High and Mighty Country Club is filled with Numbers Guys.  They want measurable metrics.  They want “the numbers” to work the way numbers work in The World of Widgets.  They’re bottom line thinkers.

Manager Sue knows business.   She digs the numbers and she “does” the numbers.   She understands The Machinery of clubs.  She knows what’s needed to make the clubhouse, the pool, the tennis courts and the golf course HUMMM.  But………

Manager Sue’s a hospitality guru, a CLUB MANAGER—touched by FIRE.   She’s a builder of relationships and community and a preacher for and a teacher of The People Side of the club equation.   She’s convinced the bottom line’s driven by The People Experience and that a club’s Social Net Worth is THE KEY to a club’s Financial Net Worth.  And she’s willing to fight for her convictions.

Manager Sue has a vision.  She wants to create a bocce ball complex.  The best.  Pro quality.  In a prime “front of the porch” location.  With seating.  Decking.  A portable bar.  Fire pits.  Filled with crushed sea shells.  Laser leveled.  An “in your face when you arrive at the club” goodwill generator, a focus for conversation, an excuse to gather and a permanent Buzz Builder.  A DEAL at $127,867!!!

Manager Sue’s meeting with the Finance Committee to get their blessing for The Bocce Vision before going to the Board for The Big O.K.  She knows what Finance wants.  Short term stuff.  ROI.  Profits.  The P&L is their template for evaluating “club”.  And that’s good—but not enough.  Vision’s needed.  A philosophy of CLUB.

She presents The Numbers.  The Numbers Guys give The Numbers a look.  They give each other The Look.  They give Manager Sue The Look.  They laugh.  They chuckle.  They snicker and they snort.

“Ain’t no way you’ll ever pay for this bocce thing from cocktail sales.  It’d take you 39 years just to pay off the investment.  And the operating costs—the maintenance, the referees, the free popcorn—are a sinkhole for cash.  It’s obvious to any halfway clever MBA that this project’s a LOSER!!!   A DOG!!! Ain’t no way THIS Committee will endorse something that’ll make us look dumb to the bean counters of clubdom.”

Manager Sue stares at The Numbers Guys and shouts “you blubbering idiots, you pack of fools, you Philistines”—to herself.  She takes a huge guzzle of High Octane “Free to Members” Fair Trade Caffeine from her official “I’m the G.M.” High and Mighty 22 ounce coffee mug, breathes deep and speaks.

“This Bocce Complex will super-charge our Social Net Worth—instantaneously!!!  Members will gather, talk, linger, engage, socialize, do “Club” on the courts and around the courts.  Our Social Bottom Line will be in the black, our Social Net Worth will be the envy of The Big Boys of Clubdom, the club’s reputation will flourish and we’ll attract and retain members who’ll use the club, linger longer and spend The Big Bucks when they visit.  If The High and Mighty’s worried about its Financial Net Worth, we need to invest in projects that’ll boost our Social Net Worth.  People are hungry for The Social Experience and The Bocce Complex will feed their hunger.”

They stare.  Sue stares.  Silence.

“Winning clubs— Great Clubs!!!—focus on their Social KPIs first because they’ve learned from The School of Hard Knocks that their Bottom Line is fuelled by The People Experience.  The Bocce Complex will boost our Social KPIs, it’ll boost our Social Net Worth, it’ll “blacken” our bottom line and it’ll boost our Financial Net worth.   And any investment that does all three is a WINNER.  And this bocce complex at a modest $127,867 is a WINNER!!!”

They stare at Sue.  They stare at each other.  They chuckle.  They snicker.  The Big-GuyIn-Widgets then asks, “What are these Social KPIs—these “measurable metrics”—you’re talking about???  None of us MBA’ers have a clue what you mean with all this touchyfeely foolishness.”

Manager Sue simmers.  She stews.  She ponders.  She mellows.  She speaks.

“Ladies and Gentlemen of Finance, let me explain.”

And she does……….

Social KPI’s

“Our Social Net Worth is front-and-center whenever a member, guest or employee visits the club.   Their social experience is quantifiable—and the numbers matter.   Here are a few of the KPIs, The Measurable Metrics, people will use to evaluate The Club and our Bocce Investment.

  1. Number of years members and staff stay.
  2. Number of Member-Member, Staff-Staff, Staff-Member Eye Contacts.
  3. Number of member-member, member-staff, staff-staff Hand Shakes, Fist Bumps and Hugs.
  4. Number of Greetings and Goodbyes.
  5. Number of times management greets guests in the lobby during private events.
  6. Number of times management greets members in the lobby during club events.
  7. Number of times management greets members and guests in the lobby during lunch and dinner.
  8. Number of Pro / Member (Tennis, golf, gym) Encounters.
  9. Number of Front Office visits by Children.
  10. Number of impromptu member / staff / guest conversations with The Manager.
  11. Number of impromptu member /staff / guest visits to the G.M.’s office.
  12. Number of team building “social experiences” for the staff
  13. Number of member social and athletic events.
  14. Number of recurring annual “all club” events.
  15. Number of new member orientations by the G.M.
  16. Number of new staff orientations by the G.M.
  17. Number of time the G.M. acts as M.C. for staff and member events.
  18. Number of members on committees.
  19. Number of members on the wait list to serve on committees.
  20. Number of member visits per month.
  21. Number of minute’s member s linger during each visit.
  22. Number of Staff and Member Laughs per hour.
  23. Number of Encounters during which members and staff use the names of the people they’re encountering.
  24. Number of minute’s members speak to members and staff when they visit.

Manager Sue finishes.  She stares.  They stare.

“The Bocce Complex will boost our numbers and strengthen our KPIs.   It’ll supercharge our Social Net Worth which will super-charge our Financial Net Worth.   We’ll be in The Black—socially and financially.  We’ll attract members.  We’ll keep members.  They’ll visit often.  They’ll linger longer.  And they’ll spend The Big Bucks.  And because of all that, you who are The Controllers of The Purse, need to ENTHUSIASTICALLY endorse this $127,867 social investment in The Bocce Ball Complex.”

Gasp. Breathe. Sip. Stare. Wait.

The Committee stands with a ROAR and, with a single voice, shouts out—“We agree!!!  Time to buy!!!  Let the bocce-ing begin!!!”

Boosting Social Net Worth

Manager Sue glows.  She speaks.  “Clubs are in the people business—and doing people right means delivering, month in and month out, measurable, “in the black” Social KPIs. And clubs that do people right have a high Social Net Worth and clubs with a high Social Net Worth will have a high Financial Net Worth—guaranteed.”

Breathe. Drink. Speak.

“If we at The High and Mighty want a great P&L and a high octane balance sheet, we need to pay attention to our Social KPIs and our Social Net Worth.   We need to invest in them, cultivate them and sing their praises.”

Sue drinks.  Smiles.  Speaks.

“And while we’re delivering, let’s enjoy the journey………………”

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