In a recent discussion I had with a local club manager and CEO about their hiring practices I asked the question, “Is the club profitable?” The manager and CEO were somewhat taken aback and, rather unconvincingly, assured me that the club was profitable after several years of mismanagement, high staff and management turnover, and a raft of “turn around” tactics.
They went on to explain that the business was now focused on profitability and that the previous club manager had been let go because of her operations focus and apparent lack of revenue generating ideas.
Fair enough… however, after examining their “job description” for the new club manager position it was almost exactly like the old club manager position. In fact, given the job description, the old club manager would have been the best candidate for the position… it was completely operations focused with no mention of business development at all.
The reason club profitability is an issue is because an unprofitable club (or a club focused on serious revenue or profit growth) and a profitable club require two completely management styles.
A head-down management style is characterized by an operations focus, is very command and control, top-down, hands on, in the trenches, and process driven. Think of head-down as someone with a jig saw puzzle industriously sorting and assembling the pieces in front of them… no need to look up because everything they need is right in front of them.
A head-up management style is characterized by a strategic focus, is more collaborative, bottom-up, arms length, and business development driven. Think of head-up as a coach watching a football game from the sidelines, calling plays according to how the game is unfolding, substituting players based on their individual performance, team needs, and opposition tactics, and reviewing important statistics on the run… if they look down for too long they will miss something critical.
A head-down manager is best for a profitable club because they are across all the issues that keep the business running successfully. However, head-down managers will miss opportunities to improve the business because of their process-centric focus.
Alternatively, a head-up manager is best for an unprofitable (or growth seeking) club because they are actively looking for opportunities to create a successful business. Of course, head-up managers aren’t across all the issues that keep the business running successfully (relying instead on others) because of their business development focus.
The lesson… don’t send a head-down manager to do a head-up manager’s job.
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