We’re in a market where there’s always a danger consumers will struggle to differentiate between operators.
With their similar equipment, timetables and technology, customers can sometimes find it hard to tell them apart, ultimately making commoditisation more likely.
When this happens, the most obvious tool is to differentiate on price, but this is risky in a market with fixed costs and largely fixed pricing structures.
For some operators, however, the secret to success is deploying their people to be the point of difference.
In this issue of HCM, we plunge into the complex world of company culture (page 42) and examine how leaders in the sector are powering their organisations by dedicating energy to creating world-class cultures.
Sondre Gravir, CEO of SATS told us: “I truly believe culture is by far the most important driver for our performance...as members’ experience defines our success... Leadership is about empowering our club staff to deliver extraordinary experiences.”
Neil Randall, CEO of Urban Gym Group, agrees, saying “Culture is mission-critical for Urban Gym Group and we believe it to be the most important factor for the success of our company... How staff deal with customers, interact and support each other and other stakeholders ultimately determines the magic that one company has and the other does not.”
Jetts’ CEO, Elaine Jobson, sees culture as being so vital she’s written a book about it called High Performance through Happy People.
When she started her career in the sector, 30 years ago, many companies had toxic cultures and prioritised performance and growth at any cost.
Jobson challenges this as the best approach, talking about building a culture as a competitive defence and treating the member journey as falling in love.
It’s not surprising that in a poll of top companies globally, leaders attributed 30 per cent of their profits to their company culture, highlighting how vital this endeavour is to success.
There are still a few operators in the sector with toxic cultures, but thankfully, as the industry matures, their numbers are diminishing and we’re moving into an era where industry leaders are more skilful in this area.
On page 80 we consider current recruitment challenges and the message is clear. Young people are interested in joining our sector, but want to work in a positive culture and to be well paid and mentored. The future success of our industry will depend on getting this right.
