The YEAR AHEAD


Commit to Elevating Your Business Reputation


BY RAY ALGAR


equipment and other physical assets that attracted customers, often on the basis of convenience to home or work. Cultivating a remarkable reputation was perhaps not a strategic imperative when you were the only real choice in town. Today the world is a very different


T


place and the marketplace is awash with fitness alternatives, some of which are free. As the fitness eco-sys- tem expands, I believe that consumers will increasingly rely on an organiza- tion’s reputation as a way of navigat- ing a congested marketplace. Reputation is an emotional reac-


tion to an organization, and historical- ly the industry has paid far too little attention to it. Think about the rapid adoption by consumers of the low- cost gym model, which has exploded globally. Part of this growth has been achieved by exploiting the poor repu- tation of incumbent club operators who failed to recognize that power was quickly shifting from the provid- ers to consumers. Removing a few staff members from


the gym floor, failing to refresh and reinvest, cutting a few classes and/or stubbornly enforcing a contract when a member’s life suddenly changes, may create a short-term win, but at what cost to long-term reputation? Instead, what if our ambition was


to foster an ever-better reputation and that we used this as a catalyst to el- evate experiences and to innovate and deepen relationships? The result could create something truly remarkable, defined as “worthy of sharing with others.”


he fitness club industry was built with a focus on the tangible ex- perience: impressive buildings,


Clubs may operate from physi-


cal buildings, but their reach and im- pact extends far beyond their walls. For example, a typical club has many stakeholders. When thinking about who may have a stake in a club, mem- bers, employees and investors come to mind. But what if we applied a broader definition and defined a stakeholder as any person or organization who im- pacts or is impacted by the club. Now we think of communities, the envi- ronment, suppliers, competitors, press and other media, government, former members, former employees and oth- ers. Suddenly, the club’s reach and influence become greater. The most successful clubs recognize and nur- ture this much broader community of stakeholders and understand that their reputation is impacted by every interaction. So as you look ahead to 2018, I urge


you always make decisions that are consistent with the expectations of all your stakeholders and to continually ask yourself, “Will this action help to improve our long-term reputation?”


Ray Algar is the managing director of U.K.- based Oxygen Consulting, which provides strategic business analysis to the global fitness industry.


Ray Algar


“What if our ambition was to foster an ever- better reputation and that we used this as a catalyst to elevate experiences and to innovate and deepen relationships?”


28 Fitness Business Canada January/February 2018


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