Measuring performance in operational management and customer service quality: A survey of financial and non-financial metrics from the Australian golf industry

Abstract

There are over 1,500 golf courses in Australia, of which almost 400 are publicly owned. These courses are the focus of a large and vibrant industry, with an estimated turnover of A$365m per year. Furthermore, Australian Bureau of Statistics (ABS) surveys regularly place golf in the top three sports and physical activities participated in by Australian adults. The major form of external performance measurement of golf courses is a subjective list of experts' perceptions of the ‘top 100 golf courses’. Internally, the financial bottom line of profit and loss statements is usually the only other item on the course ‘scorecard’. Little has been done in terms of developing performance indicators that are applicable for widespread external use in golf course management. The research reported in this paper has addressed this lack of external performance measures with the development of performance indicators that are applicable for use in the operational management of golf courses. The first phase of the study concluded in 1999, and was funded by the CERM Performance Indicators (CERM PI®) project based at the University of South Australia and a number of Australian local government councils and industry partners. A total of 41 performance indicators were developed to represent financial and non-financial areas of operational management, plus 21 attributes of customer service quality. This paper also reports on limitations identified during the trialing of the instruments and protocols, and makes recommendations for ongoing research.