Review of Opportunities to Strengthen the Delivery of Sailing in Australia
Contents GLOSSARY OF TERMS AND ABBREVIATIONS
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Contents GLOSSARY OF TERMS AND ABBREVIATIONS AIS Australian Institute of Sport ASC Australian Sports Commission APST Australian Paralympic Sailing Team AST Australian Sailing Team AWD Athletes with a Disability BIA Boating Industry Association DSS Decision Support Systems FA Federal Assembly GMP Gold Medal Plan IFDS International Federation Disabled Sailing ISAF International Sailing Federation LTS Learn to Sail MYA Member Yachting Association (Eight state and territory peak bodies for yachting) NCAS National Coaching Accreditation Scheme NOP National Officiating Program NSO National Sporting Organisation PSDS Paralympic Sailing Development Squad PST Paralympic Sailing Team PMS Performance Management Systems SBP Sport Business Partners SHPP State High Performance Programs SIS/SAS State Institute of Sport/State Academy of Sport SSSM Sport Science/Sport Medicine TSPGP Targeted Sports Participation Growth Program YA Yachting Australia YATC Yachting Australia Training Centre YV Yachting Victoria FOREWORD It is with pleasure that we submit the review of opportunities to strengthen the delivery of sailing in Australia. Strengthening Sailing represents the first of a next-generation of national sporting organisation reviews commissioned by the Australian Sports Commission. Historically, reviews commissioned by the ASC have been interventions with sports that featured underperforming elite programs, poor fiscal management or governance models and behaviour that did not meet the ASC’s governance principles of best practice. The next-generation reviews are focused on working with sporting organisations that are perceived to be generally working well and providing insight and assistance to enable the development of recommendations and business strategies that will challenge the sport and the business to strengthen and improve its performance. Entering into an ASC-funded review with a sport operating in a relatively stable environment presented some initial challenges in gaining the buy-in and indeed the trust of some of the sport’s stakeholders. Some stakeholders expressed concern that the ASC favoured a unitary model of governance (thus potentially threatening the Federal model and history of the Member Yachting Associations), while others assumed there must be a major sport or business performance concern that was driving the ASC’s ‘intervention’. As a result, the reviewers were required to invest significant time at the front end of the project overcoming these concerns and providing assurances of our own independence, as well as promoting the best practice principles of undertaking a core business review of Yachting Australia and the sport of sailing. Overall, participants involved in the consultative process responded and contributed positively, and it was clearly evident they shared a common intention towards the aim of the review, which is to strengthen the delivery of sailing in Australia. From the outset, our team of review consultants promoted a partnership approach to the review between YA, MYAs, ASC, stakeholders and ourselves as independent reviewers. While this approach has contributed to lengthy delays in completing the review within its initial timetable, it has been particularly beneficial in allowing all parties to distil information and constructively debate threshold considerations at key stages of the project. The resultant report demonstrates a high level of unified support for the majority of recommendations by the Steering Committee. A number of the recommendations will be confronting and likely to draw opposition from those who perceive that their own or the sport’s interests will be compromised by the proposed directions. I am, however, confident that based upon the convergence of views, the evidence and expertise contributed to the review and its subsequent recommendations, the sport of sailing can be substantially strengthened throughout Australia and across all levels of the sport if the proposed directions of this report are adopted and executed. There have been many contributors to the review over the past 10 months, and on behalf of our team I would like to thank all those who participated at various stages through written submissions, capital city workshops and personal interviews. The insights have been educative for the reviewers and were typically provided with the backing of strong passion and optimism for the prospects of the sport of sailing. Acknowledgement must be given to Andrew Plympton, Phil Jones and the YA Board for participating in the first of the ASC’s next-generation reviews. It has been a lengthy process for all involved and my sincere thanks go to the Board and the CEO for their willingness to consider, contribute to, and embrace change. My thanks also to the ASC’s Dr Robert Kidston, Senior Consultant, Governance and Management Improvement, who was a major contributor to the project methodology and strategic considerations of the review outcomes. Finally, I thank my own team of Brendan Lynch and Peter McGrath for their expert contributions to the overall review and in particular their insight and recommendations towards strengthening the governance and sport development programs for the sport of sailing. Chris Muldoon Managing Director, Sport Business Partners Melbourne March 2008 SUMMARY OF KEY FINDINGS The core business focus of YA as the national governing body of sailing has been inadequately defined and communicated. There is fragmented alignment with the core business of several of the Member Yachting Associations (MYAs) and YA, which has created tension and focus dilemma on whether it should be sailing (incorporating competitive, recreational and commercial sailing) or boating (incorporating both sailing and recreational power boating). The lack of clarity of YA’s core business focus and definition has resulted in the inability for YA to articulate its business model and priorities (how YA generates its income and hierarchy of activities based on available resources). The desired outcome of the current YA 2005–09 strategic plan to provide the vehicle for delivering a systematic approach to change management within the Federation at both National and State/Territory levels and to ensure a cohesive ‘all of sport’ approach to planning and resulting in agreed strategic priorities has not been achieved. There are nine strategic plans for yachting in Australia, resulting in a non-aligned vision and purpose, which creates a highly inconsistent and inefficient model to develop the sport and business. The sport is experiencing the typical growing pains of an organisation aspiring to transition from a small business into a medium-sized business – or more explicitly in the sport context, movement along the continuum from that of a ‘cottage’ industry to that of a professional sport business. The organisational capabilities of most MYAs are limited and there is a significant gap emerging between the professional governance and management continuum of the state associations and YA. The Governance Structure and Processes Review conducted in 2000 by BoardWorks International has resulted in positive improvement to the performance and professionalism of YA governance and the ability to attract more appropriately skilled directors. While the YA constitution has been improved, several key recommendations of the 2000 review were not adopted, which is compromising the leadership of the YA Board and management to govern and deliver the sport professionally and effectively. The current behaviour and practices of the sport within its federated structure are dysfunctional. Effective collaboration between the centre (YA) and its parts (MYAs) is being compromised by passive resistance and distrust between some states and YA. This is impeding the ability of the YA and MYA management to work together seamlessly to implement a national vision and strategy for sailing in Australia. There is a perception by MYAs and individuals within the sport that the focus of the YA Board and YA’s resource allocation is geared too heavily towards the activities of the Australian Sailing Team (Olympic Program) and not in proportion with the needs of its members (clubs) who are predominantly interested parties in competitive sailing below the elite level and recreational sailing/boating. This is of particular concern to clubs and MYAs as overall participation in sailing has either stagnated or declined in some parts of Australia. While it is not necessarily accepted by stakeholders from within the sailing community, the participation pathway for sailing is complex and perceived as being expensive for new entrants comparative to that of the major mass participation sports. While there are many examples of clubs and commercial training operators providing innovative and effective participation programs, this is happening largely in isolation and lacks the consistency of product offering which is desirable for a national participation growth strategy for the sport. Significant improvements have been realised in the delivery of sailing’s high-performance activities between the years of 2005 and 2007. These improvements have been enabled via a highly focused and uncompromised strategy, which has been supported by a significant structural change to the high-performance unit (Olympic and Paralympic), a refreshed coaching structure, and stronger collaboration with the Australian Institute of Sport to integrate and apply sports science and sports medicine. The AST has rebounded from its number 10 ISAF country ranking in the Olympic Classes (Fleet Racing) in 2004 to number one ISAF country ranking in March 2008– this includes five AST members currently ranked number one in the world in their respective classes by ISAF. There are indicators of improvement in the management and results of YA’s commercial activities. The establishment of premium sponsorship properties associated with the Australian Sailing Team and AST brand has been a key driver in the growth of corporate sponsorship income, however this has for the most part not yet enabled YA to deliver more direct benefits to clubs and community level sailing. Further growth in YA self-generated revenue (i.e. non-government) requires bolstering of expertise and dedicated resources to commercial and media development activities. SECTION ONE I INTRODUCTION INTRODUCTION AND CONTEXT OF REVIEW 1.1.1 About the Review In March 2007, the ASC and YA agreed to conduct a joint whole-of-sport review of opportunities to strengthen the delivery of sailing in Australia. Unlike some previous ASC reviews where there has been some precipitating event adversely affecting the delivery of a sport, the origins of the joint ASC–YA review were more positive and very much in the formative, developmental mould with a focus on improvement rather than remediation. At the same time, it was agreed that the present review would be undertaken on a ‘without prejudice’ basis aimed particularly at improving the capability of YA through an objective, independent examination of the key drivers affecting the delivery of the sport, including matters such as business strategy, organisational structure and the NSO’s relationships with the various components of the sport nationally. Management of the Review A Steering Committee has overseen the management of the review. The role of the steering committee has been to: Approve the selection of the consultant; Approve the project plan; Review the outcome of stakeholder consultation; and Approve the final report. The membership comprises: Brent Espeland, Director, Sport Performance and Development (SPD), ASC (chair); Professor Peter Fricker, Director, Australian Institute of Sport (AIS); (Note: Dr Dennis Hatcher, Assistant Director, Sports Science Sports Medicine, AIS, represented Prof. Fricker at meetings.) Greg Nance, Director, National Sports Programs (NSP), ASC; Andrew Plympton, President, YA; and Phil Jones, CEO, YA. ASC Project Manager Dr Robert Kidston, Senior Consultant, Governance and Management Improvement, ASC. Funding of Review The ASC is meeting the cost of engaging the independent consultancy to conduct the review. Purpose and Scope of Review The purpose of this review is to examine opportunities to strengthen the delivery of the sport of sailing. To achieve this objective, the findings and recommendations of this report have been developed via a partnership approach between YA, sailing stakeholders, the ASC and the appointed independent reviewer, Sport Business Partners (SBP). SBP has completed over 100 projects for Australian and New Zealand sporting organisations since its inception in 2001, including governance and management reviews, delivery of high performance and sport development plans, and development of commercial strategies. The project plan devised for this review reflects a blending of a successful model applied by the ASC to recent reviews of several other National Sporting Organisations with that of the methodology proposed by SBP. The review was to have a particular focus on defining and delineating the roles and responsibilities of YA with the relationships and activities of the Member Yachting Associations and individual sailing clubs. The primary focus of the review was on the key performance variables outlined in section 1.1.3. Data relating to these variables will compare ‘what is’ (describing and analysing the current arrangements for the delivery of the sport) with ‘what ought to be’ (describing and analysing how the sport should be delivered). Key stakeholders consulted have included:
1.1.3 Key Performance Variables The key performance variables identified by the ASC and YA as critical to assessing the performance of Yachting Australia and the sport of sailing include: Governance Factors: such as the constitutional arrangements, board policies, practices and behaviours; Organisational Structure and Strategic Management: policies and practices such as planning, resource management, performance reporting and monitoring, communication with internal and external stakeholders; Revenue Generation: from pursuing commercial opportunities; Sport Development: including club development and coaching and officiating; and High Performance: planning and implementation, in particular the sport’s objectives and priorities for high-performance success, high-performance management, coaching and athlete support services, talent identification and development, team and national coach selection, and opportunities for competition in national and international events. 1.1.4 Terms of Reference The reviewer will: Describe and analyse the current arrangements for the delivery of the sport, including the roles of key stakeholders; Describe and analyse how the sport should be delivered, having regard to stakeholder feedback and best practice principles and practices; Identify gaps between the current and preferred arrangements for the delivery of the sport that, if not remedied, will impede the sport’s ability to achieve the goals outlined in the agreed strategic plan; Recommend changes to remedy any gaps identified; Propose a strategy for the adoption and implementation of the report’s recommendations; Brief key stakeholders on the report and obtain feedback; and Prepare an addendum to the report on the results of this post-report consultation. 1.1.5 Additional Objectives and Strategic Issues During SBP’s initial briefings and documentation review with the ASC and the YA board and management, the following priority focus areas were more specifically identified as key objectives and strategic issues to address through the review in addition to the general terms of reference.
The Approach The framework of the Review Project Plan has been developed in eight key stages detailed below. The approach for the review was initially designed around a proposed methodology by the ASC utilising gap analysis (comparing ‘what is’ with ‘what ought to be’) based on program logic principles (see diagram below). However, where appropriate SBP was provided flexibility to modify the proposed approach as it saw fit to strengthen the best outcome for the sport. When variations to the project methodology did emerge throughout the review, both YA and ASC have been adaptable working partners in considering and accepting modifications to the conduct and delivery of the review. Review Methodology Approach: Program Logic Framework 
SECTION TWO I KEY FINDINGS AND RECOMMENDATIONS This section details the findings from consultations with a broad range of sailing stakeholders and the desktop review of relevant documentation across the key performance variables impacting the delivery of sailing. The findings are organised into five key chapters encompassing the whole-of-sport and business review, and are sequenced to reflect the principle of strategy before structure. The chapters in Section Two include: Business Strategy Sport Development (Community Sailing) High Performance Commercial Development; and Governance and Management. Each chapter provides an overview and analysis of key performance drivers of sailing and describes ‘what is’ and ‘what ought to be’. These are the fundamental drivers that shape the performance and growth of the sport and business. This approach provides for an evaluation of how the YA business and delivery model performs overall as a business system, not just as a collection of individual parts. Each chapter provides a succinct conclusion, which summarises key findings of the body of the chapter and contains an interpretation in plain English of what this means for the future delivery of the sport. The conclusion is followed by the reviewer’s recommendations to strengthen the delivery of sailing in the future. 2.1 BUSINESS STRATEGY KEY PERFORMANCE DRIVERS Business Model Customer and Market Segments Strategy Analysis and Formulation As each stage of the review progressed, it became increasingly evident that there was a general lack of understanding and/or agreement on what business YA is or should be in and what the priorities of sailing in Australia should be. Naturally, the inability to articulate the business focus and business model of YA presents challenges to the board, management, MYAs, Clubs and other stakeholders to manage and grow the sport of sailing and the business of YA effectively with the limited resources available. Operating effectively within the environment of a federated sporting structure is complex and imperfect. It requires the centre (YA) and the sum of the parts (MYAs, clubs, private providers) to be working with each other in collaboration to improve the health of the sport overall. This does not mean that all stakeholders must have a perfectly aligned view of core business; however agreement is needed in key areas if the sport is to be delivered effectively and with efficiency, which is imperative due to the constraint of resources which exists. There is acknowledgement that the current approach and model are not working for YA, and moreover for the sport of sailing and its members. The inability of YA to universally implement national initiatives (particularly participation development), policies and commercial activities is compromising the growth and performance potential of sailing throughout Australia. The growing pains being experienced by YA is typical of organisations aspiring to transition from a small business into a medium-sized business – or, more explicitly in the sport context, movement along the continuum from that of a ‘cottage’ industry to that of a fully professional sport business. This finding is the key underlying premise of the overall review and it is reflective of the expressed direction stated by the YA Board to the reviewer and the ASC to incrementally progress the organisation along this continuum towards professionalism and greater direct exploitation of commercial opportunities over the next five to seven years. Given the importance of such threshold decisions for the sport and the support of the YA Board and the ASC to apply the ‘structure follows strategy’ organisational principle, it would be prudent for YA to defer major decisions on forward planning for the medium and longer term until further work is completed to enable an evidenced-based understanding of YA’s current and targeted customers and the associated business options. This will allow the Board and management to make more informed decisions about the future delivery of the sport and business. While the resultant decisions of YA’s forward business strategy should precede any significant changes to the governance and management structure of YA, this review does lay out proposed structural reform options designed to support the progress of YA along the desired professional business continuum. Yachting Australia Overview and Purpose The YA constitution and its objects are referenced in this section and discussed in further detail in section 2.5.1. The objects provide a logical starting point to understand the intended purpose of the organisation. It is also instructive to review the YA 2007 membership information booklet, About Yachting Australia, which provides a more narrative summary of the purpose and functions of YA under the following headings: What is Yachting Australia? We are the national association for recreational boating. We are recognised as the National Sports Organisation for sailing by the: ASC, AOC, APC, ISAF. We represent recreational boating interests to the National Marine Safety Committee and the Australian Maritime Safety Authority. What We Do (summary of description of member services and benefits) Speak for boating by advocating on behalf of the recreational boating community to the government on a range of national and international issues including safety and the environment. Offer quality training to get people into sailing and boating safely and enjoyably and to improve their skills through a series of practical courses for windsurfers, dinghies, powerboats and yachts. Building a future by providing a pathway and coaching opportunities to allow young athletes to progress in the sport to the level to which they aspire. Developing world class athletes through a series of state and national initiatives, talented athletes are identified, supported and nurtured, receiving expert coaching, sport science support and financial assistance. Supporting competitive sailing by setting and reviewing the racing rules and safety regulations in line with world’s best practice, providing the framework for enforcing the rules including training officials, issuing boat rating certificates as well as owning and promoting key events. Supporting clubs and their members with a wide range of tailored insurance services for Clubs, Class Associations and individuals through to an award winning IT platform providing management tools to support organisations and volunteers at all levels. Information and advice provided through a website that is a leading source of information on the organisation of sailing and boating in Australia, through contact with members via Nautical News our regular e-newsletter and response to direct inquiries. Developing policies and plans to ensure the proper governance and management of the Federation with national policies to protect the interests of members, such as anti-doping, and member protection and a strategic plan laying out the future direction. 2.1.2 Business Focus Dilemma The terms yachting, sailing and boating are frequently and interchangeably used to describe the business and activities of YA, MYAs and clubs, as well as industry associations such as the state Boating Industry Associations (BIA). As a terminology, sailing can best be described as wind-powered boats used for competitive and recreational sporting and leisure pursuits, whereas the terminologies for yachting and boating are descriptors which can comfortably comprise most forms of wind and motor-powered boats intended for competitive, recreational or commercial sailing and boating pursuits. While the YA and ASC agreed scope of this review was implicit in that it should only examine the strengthening of the delivery of the ‘sport of sailing’ in Australia, the review scope was subject to criticism by some stakeholders who held the view that the core business and interests of YA, the MYAs and clubs had evolved over a period of time to be more broadly reflective of the boating sector – incorporating all forms of wind, water and motor-powered boats. Indeed several of the MYAs (QLD, WA and Victoria) have established boating divisions within their organisations, registered business names reflective of a broader boating focus, and have actively promoted the servicing of the boating sector in response to the demonstrated and perceived demand by the MYA members – the yachting clubs. Other MYAs such as NSW, ACT, SA and Tasmania were quite clear that the immediate and foreseeable core focus of their respective organisations should be sailing. The matter of business definition and focus has taken on a more fluid form by YA. YA membership materials state that YA define it as being both the national sporting organisation for sailing as well as the national association for recreational boating. However the objects of the Federation as described in the constitution would appear to reflect that the primary activity of the national body and the branches of the Federation should be focused on promoting and administering the ‘sport’ of yachting – with the assumption that sport generally constitutes a form of organised competition and in this instance various racing disciplines for sailing (fleet, match and teams). The argument for YA and MYAs encompassing the broader boating sector is driven by the assertion that power boating represents the strongest growth sector for club memberships and revenue sources. Therefore, some MYAs are adjusting their business focus to better mirror the make up of their membership. As the powerboat group grows, so to does the demand for services relevant to this group of constituents. Some MYAs felt strongly that YA should also adjust its focus to support the development of a value proposition to the broader boating sector in order to reflect alignment with the MYAs’ shift in focus and member servicing. As provisional findings of the review were distilled and reported to the YA Board and FA, there was an increased sense of urgency surrounding the need for a decisive position on core business focus and the business model to be adopted to enable clarity and direction with the whole-of-sport strategic planning process which commenced in September 2007. Attempts were made throughout the review and the strategic planning forums to describe the options which ought to be considered to determine what YA ‘should’ do in the future. The options outlined in earlier discussions did not take on the rigor or form of a business model taxonomy, rather they were described in the very briefest of manner as ‘choices’ for the FA and YA. The business definition ‘choices’ can be summarised as three general options:
In reality, this is probably accountable for over 90% of YA activities and much of it is currently under-resourced. This model would promote the alignment of sailing priorities between YA and the MYAs and be flexible to allow the MYAs to take on boating if they wish to pursue that as a core activity of their own. YA would logically continue to provide training services/courses for powerboats on the basis of generating profitable revenue streams for YA, MYAs, clubs and private providers of registered training centres.
If the organisation truly wants to embrace sailing and recreational power boating at a national level then it will be required to strengthen the value proposition for power boats. Currently, the YA offering, benefits and business case for servicing the power boat sector are not sufficiently developed or strong enough to justify this shift at a national level. It is questionable whether YA possesses adequate resources to further broaden its focus and member servicing without a significant injection of revenue. There is currently limited evidence and no developed business case to support the financial consequences or benefits of broadening YA’s services to encompass the boating sector, and whether this shift in focus would be beneficial or detrimental to growing the sport of sailing. It is feasible to suggest that the high fixed costs associated with servicing the current membership could potentially reduce the per head servicing cost of servicing additional boating members. YA must also consider whether a broadened focus and allocation of resources to boating would be detrimental to strengthening sailing in the medium to longer term.
Unfortunately, when these ‘choices’ were more substantially tested against the architecture of a business model at the FA strategic planning forum in October 2007, it became apparent that the evidence required to substantiate threshold decisions on ‘which business are we in’ and ‘how we should deliver it’ was significantly compromised by deficient understanding of current and potential customer needs and the resultant financial consequences of the business options being considered. As a result there has been no clear convergence of thinking by the FA. The lack of hard data to support evidence-based decision-making concerning the future business options of YA has presented initial frustration to the strategic planning process. However, the acknowledgement that YA needs to undertake market research to better understand the needs of its current and potential customers and support the selection of possible business options (along with rigorous financial modelling) does in itself represent significant progress for the organisation and a positive spin-off emanating from this review. This is further discussed in Section 2.1.4. Business Model for Yachting Australia YA operate in a customer-orientated business environment, which should fundamentally be shaped around first understanding what customers desire (and need) and then building offerings (products and services) designed to meet the needs of their existing and new customers. In the customer-driven approach, customer wants are the drivers of all strategic marketing decisions. No strategy should be pursued until it passes the test of customer research. Every aspect of a market offering, including the nature of the product or service itself, is driven by the needs of potential customers – the starting point for strategy and execution is always the consumer. The rationale for this approach is quite straightforward – there is no point in investing funds into the development of products and services that people do not want and will not buy. This marketing theory can be translated in a business model context as a ‘demand orientated’ customer model. The term ‘business model’ is often misused when describing the activities of a business; however, the definition itself is not complex and may be paraphrased as a description of:
What the business does and why; Who its customers are; and How a business makes its money. From a practitioner perspective, Magretta1 wants a business model to pass two tests. The first is that the business model should be a good, credible and coherent narrative. It should be possible to tell a story about the business model that makes sense. The second test is to check if the numbers and profit and loss figures add up and are credible. Underlying any business model is the structure of its value chain. There are numerous definitions which provide guidance on taxonomies for business models, and two examples are provided below. Chesbrough and Rosenbloom2 state that the functions of a Business Model are to: 1. Articulate the Value Proposition – the value created for users by the offering based on the product/services provided; 2. Identify a Market Segment – the users to whom the product/service is useful and for what purpose; 3. Define the Structure of the Value Chain – the network of activities within the organisation required to create and distribute the products or services offered to customers; 4. Estimate the Cost Structure and Profit Potential of Producing the Offering – given the value proposition and value chain structure chosen; 5. Describe the Position of the Organisation within the Value Network linking Suppliers and Customers – including identification of potential complementors and competitors; 6. Formulate the Competitive Strategy – by which the organisation will gain and hold advantage over rivals. Osterwalder’s business model template (used in an adapted format as an indicative template at the October 2007 FA planning forum) contains nine building blocks to help describe and visualise the flow of a business model: The value proposition of what is offered to the market; The target customer segments addressed by the value proposition; The communication and distribution channels to reach customers and offer the value proposition; The relationships established with customers; The core capabilities needed to make the business model possible; The configuration of activities to implement the business model; The Directory: wp-content -> uploads -> 2013 2013 -> International post doctoral research fellowship programme final report title of the research 2013 -> Seals Family History 1565 to 2004 2013 -> Rao bulletin 15 July 2013 html edition this bulletin contains the following articles 2013 -> R institute of technology school of foreign languages 2013 -> Provisional Programme – subject to change thursday 10th april 2013 -> June, 2013 National hiv testing Day Month Men’s Health Week Hurricane Safety Month 2013 -> In memory of the residents of the Parish Chesham Bois that served their country during wwii 2013 -> Federal contract awards in georgia april 2013 Download 2.74 Mb. Share with your friends:
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