Varney Associates

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New Century Development Project at The Caledonian Club

Club Houes

My Vision

To provide additional facilities for members; including lounges, library, 150 cover function room, new kitchen, 9 additional en-suite bedrooms, a larger Terrace and office accommodation which would be fully accessible to disabled members and guests. The new building was to be viewed as part of the original house and blend in both internally and externally.

Project

To demolish a 2 storey extension, built in the 1960’s and replace it with a 4 storey building, including a new basement, increasing the total size of the club by 1/3. During the 20 months construction the club was to remain fully operational and there was to be minimal disruption to members. This was all to happen within the constraints of a Grade II listed building. At the same time renegotiate the renewal of the club’s lease for 99 years.

(a) Key Drivers

  • To increase facilities to available to members, especially additional bedrooms and banqueting rooms as the demand for bedrooms regularly exceed supply as did the requirement for a large banqueting room to seat 150 covers.
  • To allow for the expansion of the membership.
  • The requirement to renew the lease.
  • To move the Club forward in terms of up to date facilities and EU regulations (air conditioning, wheelchair access, computer connections).
  • To leave a legacy going forward for the next generation of members to enjoy.

(b) Managed Process

Committee – I presented a detailed business plan to the Committee with supporting budget costs, projected revenues and a detailed explanation of what capital was required and how this was to funded (part reserves, part donations and the balance by way of a bank loan), together with a repayment plan. This was then approved by the Committee.

Members – there was a feeling amongst some that the cost was not justified and that they felt that any building project would always run over time and budget. They were also concerned as to where all the money would come from.

I arranged for a series of open evenings to be held at which members were given the opportunity to question the Chairman, Finance Committee, Architect and myself on any matter that they wished. Detailed plans were presented together with all the cost implications. At a subsequent EGM to approve the project there were only 12 votes against out of 1100 eligible voting members.

During the design stages groups of members were invited to sit on focus groups to discuss the requirements of various areas within the new building. In this way they were able to take some ownership of the project.

The communications with the members continued through the 20 months of construction with regular newsletters, ‘hard hat’ tours and a topping out ceremony.

Members – the second concern that they had was the impact on the club during the 20 months construction, as this would involve the closing of the kitchen and the loss of 9 bedrooms, together with 2 lounge areas.

By working with the staff and through their flexibility we were able to operate a full dining room service (breakfast, lunch, dinner & banqueting) for covers up to 100. This was from a temporary kitchen craned onto the rear Terrace. Arrangements were also made with the 2 nearest clubs for additional bedrooms for the members to use.

Staff – they were uncertain of the impact that this would have on their jobs, especially during the building phase when half of the club would be closed.

To overcome this I organised a number of meetings so that the staff were involved with all the planning logistics and with aspects of the design from the very start. This continued throughout the construction stages. They were then able to see that their jobs were secure and that the new arrangements would make certain aspects of some of their roles easier. Thanks to their involvement they were able to provide a number of practical solutions to the Architects during the design stages and as a result the new facilities were easily integrated with the original building.

Local Community – as with any new building the local community were concerned of the impact to their neighbourhood.

I invited all concerned parties – residents, Westminster Councillors, immediate neighbours, to the club to view our plans and to assure them that it was as important to the club as it was to them, that the new building blended in and complimented the existing house. I also involved the local newspaper, circulated in Belgravia, that was able to publish supporting articles. As a result the planning application received letters in support of it and it was passed without any restrictive conditions.

Construction Period – During the construction I was totally responsible for liasing with the Contractors and Professional advisors. This involved almost daily contact and as a result was able to find quick and cost effective solutions to any problems that arose. I was also able to keep a firm control on the standards of workmanship.

Result

The new building was built within the budget of £6m and fully opened on time. We were very honoured to have the building officially opened by HM The Queen, accompanied by HRH Prince Philip on St Andrew’s Day 2006.

A new lease was granted for 99 years, at the same rent and without any premium.

It has been very well received by the members and staff and delivers all that was planned

Testimonials

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Business Turn-Around

Varney & Associates provide a turn-around service to stabilise businesses which are under-performing or failing, and return them to profitability. We will identify weaknesses in the business and propose appropriate solutions using a detailed review and action plan. Provide consultancy and management services to Committees covering every aspect of the club business necessary to improve overall business performance.

Following a detailed and rigorous review of your club operation, our specialist team will produce tailored strategic recommendations, complemented by deliverable action plans that will address those areas of the business either found to be falling short of the Committee’s expectation or industry norm.

Areas of review and consequent action plans will primarily focus upon the following business areas:-

  • Expense management:
    Are all necessary Departmental expense controls in place? Who takes ownership? Are expenses controlled to Budget? Does an Energy Management plan exist? What level of expense consolidation can be implemented.
  • Payroll and Staffing Structure:
    Is the current payroll cost justifiable? Are Key Performance Indicators (KPI's) in place across all departments? Does the present staffing plan contain sufficient flexibility to be viable when revenues fall short.
  • Purchasing efficiencies:
    Whom do you buy from? Are prices charged the best for you or best for the supplier? Is purchasing power fully leveraged.
  • Operational day to day business management:
    Is Revenue and Surplus forecasting in place and accurate? Is cash flow being managed effectively? Are all Fire, Health and Safety Statutory obligations fully adhered to? Is there a positive culture of business ownership in place within the club team? Are management fully accountable? Are hospitality standards commensurate with members’ expectations? Are service standards consistent? The above questions are only some examples of what may be included in any business review. Each project we undertake is tailored to address the specific needs of the business and the Committee.
  • Sales, Marketing and Pricing Strategy:
    Is sufficient resource allocated to both reactive and proactive Sales? Is there a time bound Sales, Marketing and PR Plan in place and alive in the business? What is the extent of knowledge on the recognised Competitor Set? Is the business generating Fair Market Share? Is current Electronic Distribution efficient? Is there a steady inward flow of new members? Why do members leave.

Operational Continuity/Interim Service

Varney & Associates offers an interim service to clubs who suddenly find themselves without a Secretary/General Manager. This gives the Committee time to carry out a through search for a suitable replacement, a comfort in the knowledge that there is still an experienced professional at the helm.

Sales and Marketing

Success in sales and marketing starts with understanding the hospitality market-place as a whole, understanding your club, defining its current and desired position in the market-place, and building a product/service that will exceed the expectations of your members and customers.

Sometimes, the product may need fine-tuning to keep pace with a changing market-place. Other times, it may be a case of pursuing a more aggressive sales strategy, or building greater impact into marketing activities. Always, the two disciplines must be consistent, integrated and customer-focused. Consumers have never had so much choice, and there is no room for complacency. We analyse every aspect of the business, its positioning and the way that sales and marketing functions.

Typical sales and marketing activities:

  • Optimised Internet presence
  • Email campaigns
  • High impact literature
  • Monthly and yearly sales support
  • Proactive Public Relations activity

Purchasing and Stock Control

Varney & Associates provides consultancy and resource to enable you to maximise savings across your entire operation through more efficient and effective purchasing and stock control.

For many clients, a rigorous audit and review of suppliers and working practices can significantly improve profitability within a short timescale.

Our aim is always to produce a fully functional control system to suit your style of business. Varney & Associates can implement the controls, and also train your staff and management on how to use and get the best results from them.

Typical purchasing and stock control consultancy:

  • Audit of stocktaking practices and procedures
  • Implementation of control systems
  • Identification of cost-savings
  • Selective stock-takes and monitoring
  • Key supplier proposals
  • Introduction of weekly ‘flash’ food gross profit reports

Please note that all discounts negotiated with suppliers are always passed on to you.

Financial Management

In our experience, clear, realistic financial management is absolutely critical to the success of any business, clubs are no different. We use our professional expertise to control and forecast cash flow, enabling the Treasurer and Committee to take appropriate and timely decisions.

Typical financial management activities:

  • Budgeting and cash flow forecasting, weekly, monthly and quarterly
  • Financial analysis and control
  • Cost-centre management
  • Statutory and regulatory compliance
  • Optimisation of supplier terms

Reporting:

Objective reporting on all aspects of operational and financial performance is key to any successful approach to club management. Committees are kept informed at all times on a range of business performance indicators against which the club’s performance can be bench-marked.

Typical reporting activities:

  • Monthly management accounts for the Committee
  • Monthly sales report
  • Departmental management reports
  • Measurement against pre-set Key Performance Indicators
  • Monthly and quarterly meeting with shareholders

Club Feasibility Studies

If you are a property owner or an investor considering how to maximise return on your capital, Varney & Associates can provide expert services including feasibility studies to assess the potential profitability of a club.

We have strong relationships with practitioners in a range of related services such as architects, surveyors, designers, enabling us to develop concepts that are based on appropriate designs and sound operational and commercial foundations.

Varney & Associates can provide a complete development service, or you can choose from a range of services dependent on your specific requirements.

Typical Varney & Associates pre-opening support consultancy:

  • Sales and marketing
  • Recruitment
  • Financial management
  • Operations
  • Purchasing

The Role of the Club Secretary Manager

Let us help you prepare job descriptions for Club Secretaries/General Managers. We can work with you to update your staff contracts as well.

Club Constitution & Governance

Do you current Rules/Articles take into account the changes in EU Law on Human rights? Do they reflect the new changes to Table A in the Companies Act 2009, which came into effect on 1st October? Do your Officers and Committees have terms of reference? Are they aware of their corporate & legal obligations and the penalties if things go wrong?

Varney & Associates have all the answers for you and will carry out a complete audit of your constitution and recommend any amendments

Juniors/Minis Section

Do you have a ‘Junior/Minis’ section? Is the club and Committee fully compliant under the new laws introduced by the Safeguarding Vulnerable Groups Act 2006? These came into effect from 12th October and failure to comply with them can result in hefty fines.

Varney & Associates can provide you with the solutions.