Society of Outdoor Recreation Professionals - 2014€¦ · Camping facilities 14 Arts Center 15 Riverside picnic areas 16 Teen / youth center 17 Multi-purpose fields 18 Senior center
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Department of Natural Resources Parks, Recreation and Historic Sites Division Society of Outdoor Recreation Professionals - 2014 Becky Kelley Leon Younger Practical Strategies for Recalibrating Parks and Recreation Services: Staying Vibrant and Relevant in a Time of Change
Department of Natural ResourcesParks, Recreation and Historic Sites Division
Society of Outdoor Recreation Professionals - 2014
Becky Kelley Leon Younger
Practical Strategies for
Recalibrating Parks and Recreation Services: Staying Vibrant and Relevant
in a Time of Change
Department of Natural ResourcesParks, Recreation and Historic Sites Division
GA’s Mandate to Reposition
State appropriations reduced by half since FY 2009 with a directive to seek greater self-sufficiency.
Our mantra ever since:
Survive the Day…
Protect the Core…
Reposition to Rebound...
Presenter
Presentation Notes
Georgia’s state parks and historic sites were impacted by the economic crash beginning in FY 2010. That's the year our Division’s state funds were reduced by 39% and we were directed to seek greater sustainability within our operations. Since then, additional cuts have been made and we are now operating with about half of the state fund support we had in FY 2009. To respond to these drastic funding shifts, we outlined a plan that would transition our system to a more sustainable operation, with minimal state fund support, by FY 2015. In order to create our “Direction 2015” (D15) plan, we had to clearly understand our situation, capabilities and potential, so we created clear business goals for our D15 effort that will strike a balance between stewardship and revenue generation. Division Response: Responsibly pursue a strategy of self-sufficiency while honoring our mission to protect Georgia’s natural and cultural resources and provide opportunities for public enjoyment and education.
5 Lodge Park > Authority Partner
19 Alternative Format‐Satellite‐SORA‐Local Gov’t Assistance
OPERATIONAL SHIFTS
2 New State Park
1 Extracted fromParks System
Sprewel
l Bluff
‘Survive the Day’Samples
‘Survive the Day’Samples
Beyond ‘Cuts’: Define and Lead the Way
Direction 2015 •Recalibrate to respond to ‘new normal’•Engage and energize staff, stakeholders and host communities•Communicate system condition and needs•Establish proper balance between state funds and self-sufficiency, and between stewardship and revenue generation
We set initial target goal… & focused on the frontline…
Strategic Business Planning
Recalibrate and Empower
Focus on the Frontline
1. Activated Direction 2015 Leadership Team and issued a division-wide charge to staff to chart a path to sustainability by FY 2015
2. Engaged to help us assess our operations and offer site/system insight on ways to become more sustainable
3. Challenged staff, leadership, Friends, stakeholders and host communities to work with us to find the ‘right’ sustainable goal
Presenter
Presentation Notes
I’ll hand-off to you to cover Slides 7-14
Functionally Design and Funded
How Are We Funded?
How Do We Function?
Points of Distinction – People Over Places
Our approach is not just Managing State Park Sites…
Design to a strategic balance!
Points of Distinction – Financial / Operational Focus
Strategic Business Planning
Presenter
Presentation Notes
Full internal and external checkup w/ prescription for sustainability. Develop integrated business plans, resource management and schematic site development plans for each park and historic site Establish definable sustainability targets for each site Establish resource management standards to properly care for Georgia's natural, cultural and recreational resources Improve site and division-wide budget development and management Direct investment of capital funds and partnerships to maximize sustainability Make progressive organizational adjustments to maximize efficiencies, realign staff resources and challenge/assess emerging leaders within the organization
Pricing of Services
Implementation and Funding
Total Vision Cost
Implementation + Action Plan$ Highest
Priority Needs
Realistic Available Funding
Top Priority Needs:
Overall Ranking
Walking and biking trails 1Outdoor swimming pools / water parks 2Indoor fitness and exercise facilities 3Nature center and trails 4Indoor running / walking track 5Indoor swimming pools / leisure pools 6Small neighborhood parks 7Green space and natural areas 8Off-leash areas 9Amphitheater 10Playground equipment 11Large community parks 12Youth Soccer Fields 13Camping facilities 14Arts Center 15Riverside picnic areas 16Teen / youth center 17Multi-purpose fields 18Senior center 19Indoor basketball / volleyball courts 20Public golf course 21Youth Baseball and Softball Fields 22Skateboarding park 23Adult soccer fields 24Outdoor tennis courts 25Adult baseball and softball fields 26Outdoor basketball courtts 27Disc golf 28
Implementation and Funding
• Revenue enhancement strategies based on local understanding and national experience. Examples include:• Fees and charges• Sponsorships / advertising • Naming rights• Crowd-funding• Programs and services• Endowments/grants/non-profits• Partnerships• Concession operations/opportunities• New or enhanced facility development options and cost estimates• Marketing of the state park system• Concession operations• Contracting options to avoid operation losses
Defining Goals and Outcomes
• Define Goals / Outcomes to be achieved by…
Land Acquisition, Resource Protection & Facilities
Programs
Operations and Maintenance
Financial
Marketing and Communication
• 3-5 Year Strategic Plan to complement Business Plans
• Set priorities, build Strategies and Tactics
• Assign Staff Groups
• Establish Performance Measures and Timelines
Presenter
Presentation Notes
After you’re done, I’ll pick up to share how we put it all together and where we’ve gotten to by covering Slides 15-20.
Process and Product Outcome Samplers
Process -•Operational Cost Accounting
Products -•Site Business Plans (2012)
•Site Transition/Trends Report (2014)
Revamp the current budget and timekeeping process to create a more detailed expense and revenue tracking system.
GA State Parks - Cost Accounting
Presenter
Presentation Notes
Prior to Cost Center Analysis, state parks used the traditional “Slice of the Pie” budget philosophy. Which is spend you’re entire budget and have a few extra emergency purchases to justify increasing your budget the next year. We only knew how much labor, operating and capital we were spending and how much revenue we were bringing in as a division. The two numbers were not even tied together and Profit/Loss was not in our vocabulary. A painful paradigm shift had to occur to survive the upcoming budget crisis. The business of running a state park was broken down into 40 measurable categories (Cost Centers). The current budget system was changed to capture expenses down to the facility/ amenity level (Cost Centers), Revenue was tracked down to the amenity/facility level and added to the budget. Timesheets had to be adjusted to capture time down to the cost centers/different amenities/facilities. Staff Education – The most difficult piece to implementing the plan was training the staff to understand the philosophy…to buy in. The sites are no longer able to hide wasteful practices/spending…it unmasks each cost centers true profit/loss…thus revealing some positive and negative operational results. The Staff may not like what they see.
GA State Parks - Lessons Learned
Presenter
Presentation Notes
Determining the Feasibility of Capital Purchases – This ability has steered our decisions to increase our Yurt inventory due to quicker payback periods. (Revenue increased 45% in the last year). Prior to having the cost information – new facility placement/type were determined by 1. Politics (Eco-Lodge in Swamp ) and 2. Operational assumptions (Cottages should be built/most profitable). The cost information provides the financial data to support capital decisions…it also assists with defending against poor political decisions. Investment in Recreation Amenities - Thus, this FY, we are investing $150,000 to increase kayak and bicycle fleets and add paddle boards to the inventory. We expect to double that return within a year. Creating Promotions - Because we have the costs associated with all of our amenities and facilities, we can confidently attempt to increase our sales volumes with discounts and promotions while at the same time maximizing our profit. At one site (GLSmith), we offered a winter ½ off weekday cottage rate. This increased occupancy by 40% during this time period and revenue increased by approximately $10,000. Operational Decisions - Fort Yargo Case – The site had a beach concessionaire that generated $23,000 of profit on the recreational amenity rentals. When the park took into consideration all of the revenue and costs, they decided to operate those amenities themselves. In the first year their profit was $43,000 – a $20,000 increase.
GA State Parks Site Business Plans
Every state park and historic site has developed a Site Business Plan (SBP) that outlines:•Site and Operations Assessment
• Site Inventory and Facility Assessment• Financial Performance Assessment
•Business and Management Opportunities• Business Goals• Core/Important/Visitor-Supported Service Designations• Marketing and Sales Plan• Partnership Development Plan• Revenue Generation Plan• Expense Management Plan• Financial Pro Forma through FY 2015
Presenter
Presentation Notes
Our first order of business in developing these SBPs was to assess our existing site and operational situation. We also began tracking the true costs of our operations and identifying the expense of protecting our natural, cultural, recreational and infrastructure assets. We also defined our core, important and visitor-supported services so we can prioritize the investment of state appropriated and self-generated funds into the most fundamental components of our operations. From all this, we have outlined strategies for improved marketing, partnership development, revenue management and expense management. We'll be taking time tonight to highlight these efforts, present our findings and get your input. The site business plans involved each site manager in identifying business and management goals that will improve cost recovery, revenue generation, programming, customer satisfaction and marketing. The site business plans also involved identifying opportunities for local support and engagement, including partnerships, concessionaires, marketing and co-branding, and fundraising. The last half of our meeting tonight will include an overview of our site business plan and discussion about how you can help support its implementation. We will appreciate your input and perspective and invite all of you (Friends, local supporters, partners …) to get and stay involved.
From Business Plan to Trend Report
Trends Analysis: Skidaway is a Site of Opportunity, warranting continued investments that advance its positive public support and upward momentum as a strong revenue center for the system.
The following campground enhancements will increase revenue potential: • comfort station replacements• sewer hook ups on at least 50% of the site • update all campsites to current construction standards • improved tent camping • add Wi-Fi to the entire camping area• improved electrical service
Skidaway State Park Transition Priorities
Guest services and visitor experience enhancements: •play areas with a spray pad feature•a new administrative/retail facility•trail improvements and stabilization •replacement of the group shelter•a modular or stand-alone miniature golf course or other recreation amenities that are popular with campers •possible additional rental camper cabins should the site plan allow for and the business assessment support the additions
