1. Fitness Industry Association
Manchester, England
Extraordinary Club Management For
Extraordinary Times
June 2009

2. “Welcome”

3. Opportunity Or Crisis?
Leaders Lead!

4. Channels

5. 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

6. 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

9. 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.”

10. 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”?

11. 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.

12. Begin with the End in Mind
Be Do Have
See Do Get

13. Creating Value
Useful
Value Creation
Usable Desirable

14. Why are you in business?

15. Club One Fitness Manager
People?

16. Where are your People?
V
A
L
U
E
S
PERFORMANCE

17. What Are You Doing Differently?
• Sales
• Retention
• Programming
• Expenses

18. What Can You Do?
• Wage Freezes
• Hiring Freezes
• Pay Cuts
• Staff Reductions
• Expense Reductions
• Contract Reductions/Eliminations

19. 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

20. 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.”

21. Member Experience
Touch
Point
Product
Touch Touch
Point Point

22. 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

23. The Member Journey…

24. 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!"

25. 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?"

26. 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.

27. 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.

28. 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.

29. 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

30. Members For Life
Retention Model
Every Thing You Do – Every Touch Point
Enrollment Connection
Intervention Of At Risk Members
On-Boarding Loyalty

31. Prospect Enrolls
Systematic Enrollment

32. 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

33. On‐Boarding

34. Getting Started The Right Way
Days 0-30 (30-day check-up)
The beginning is critical

35. Connection
Area of Play

36. 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…

37. 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

39. Life is good
You are engaged

40. 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

41. Member Goes Missing
Stops Coming To The Club

42. Life Happens
Stuff gets in the way

43. Why People Leave
Product
Other Interests Move Die
Dissatisfaction
5% 3% 1%
14%
Competition
9%
Attitude -
Indifference by
Employees
68%
US News & World Report

44. Save ME
Do you care?

45. Recovery
• Recovery management system
• E‐mails
• Calls
• Incentives
• Letters
• Service Desk Prompts

46. I’m Back!
Why did I return?

47. You Mess UP
Why did you let this happen?

48. 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

49. You Recover and Build Loyalty
Wow – you rock!

50. 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)

51. I got results!
I’m feeling good

52. Your People Are Wonderful
They helped me and
supported me and I like
them

53. There are others like me here
I’ve made friends and connections with like minded people

54. I belong to a community

55. Lifestyle is ME
I’ve got it and I like it!

56. This is MY CLUB
I belong and I’m not leaving!

57. Others Have Got To Experience This
Promoter / Raving Fan

58. 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

59. “I hope this was helpful”

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