Review of the Registered Clubs Industry in NSW - Clubs NSW

7 Improving clubs’ financial reporting and performance
benchmarking
7.2 All clubs should be encouraged to monitor business efficiency and
financial viability measures and compare their performance to
industry benchmarks
As noted above, benchmarking is an important tool that clubs can use to understand
and strengthen their financial viability. It enables clubs to compare their own
financial performance with that of similar clubs and the industry as a whole, and
identify where their performance can be improved. ClubsNSW has developed best
practice guidelines on benchmarking for clubs which provides more detail on the
benefits of this tool (see Box 7.1).
While some clubs (particularly the larger clubs) already use benchmarking, IPART
considers all clubs should be encouraged to monitor their performance on a range of
measures, and compare their performance to industry benchmarks. IPART has
developed a set of ‘business efficiency’ measures and a set of ‘financial viability’
measures, based on information provided in stakeholder submissions, its
consultations with case study clubs, and its review of existing benchmarking material
available to the industry. 111 IPART considers that monitoring these measures will
assist clubs to assess the efficiency and profitability of their operating departments
and business as a whole, and identify if their financial viability is declining.
These measures are discussed below.
Box 7.1
Benefits of benchmarking for clubs
ClubsNSW has developed best practice guidelines for benchmarking club performance, which
IPART considers provide a good description of the process and importance of benchmarking.
For example, these guidelines explain that benchmarking plays a vital role in promoting
efficiency by ensuring that clubs have access to data that:
identifies performance gaps within their operations
highlights strengths and weaknesses within their operations
assists in developing business improvement strategies
provides a platform for decision-making and performance improvement
encourages best practice.
As a result, benchmarking can help a club to:
improve its overall profitability and efficiency
improve its staff productivity
control costs
use equipment and other assets more effectively
meet its community obligations.
111 ClubsNSW Best Practice Guidelines on Financial Reporting and Operational Benchmarking and ClubData
On-line benchmarking service (www.clubdataonline.com).
Review of the Registered Clubs Industry in NSW IPART 113