DEPARTMENT OF THE ARMY US ARMY INSTALLATION MANAGEMENT COMMAND 2511 JEFFERSON DAVIS HIGHWAY by erf18734

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									                              DEPARTMENT OF THE ARMY
                          US ARMY INSTALLATION MANAGEMENT COMMAND
                                2511 JEFFERSON DAVIS HIGHWAY
                                    ARLINGTON, VA 22202-3926




IMDCG


MEMORANDUM FOR All US Army Installation Management Command Garrisons

SUBJECT: US Army Installation Management Command (IMCOM) Policy #44, Morale,
Welfare, and Recreation (MWR) Business Programs Corporate Strategy for Performance
Improvement


1. REFERENCES:

   a. DoD Instruction 1015.10, Programs for Military Morale, Welfare, and Recreation, October
2007

  b. DoD Instruction 1015.15, Procedures for Establishment, Management, and Control of
Nonappropriated Fund Instrumentalities and Financial Management of Supporting Resources,
October 2007

  c. Army Regulation 215-1, Morale, Welfare, and Recreation Activities and
Nonappropriated Fund Instrumentalities, July 2007

   d. Army Regulation 215-3, Nonappropriated Fund Personnel Policy, August 2003

  e. Installation Management Command NETCALL #23, MWR Business
Management, March 2004

2. PURPOSE. To provide guidance to all US Army IMCOM personnel on MWR Business
Programs Corporate Strategies for Food & Beverage (F&B), Bowling, and Golf operations. This
document constitutes IMCOM doctrine and is directive in nature.

3. APPLICABILITY. This policy memorandum applies to all Regions and Garrisons.

4. PROCEDURE. This policy will be implemented at all US Army Garrisons. Recommended
changes or exceptions to this policy may be requested, with proper justification, through IMCOM
Regions to HQ IMCOM.

5. PROPONENT. The Installation Management Command is the proponent for this policy
memorandum. Point of contact is Mr. Ernie Taylor, (703) 602-5248, DSN 332-5248, or email
ernie.taylor@us.army.mil.




                                               PHILLIP E. SAKOWITZ, JR.
                                               Executive Director
                                Summary of Change

   Changed Director, Morale, Welfare, and Recreation (DMWR) to Director,
    Family, Morale, Welfare, and Recreation (DFMWR) throughout document

   Changed document from regulation to policy, eliminated references to
    regulation throughout

   Corrected numbering errors throughout document

   Adds Chapter 3-3, Catering, which sets policy on the Centralized Catering
    Program

   Incorporates and supersedes Policy #42

   Updates internet web links

   Adds Appendix D, Competitive Price Surveys for Bowling, Golf and Food &
    Beverage

   Adds language in paragraph 3-1.h.9 making use of Army standard point of
    sale and systems mandatory

   Updates salary tables 3, 11, and 17

   Changes the NIBD standard for Bowling to reflect 15% at all locations

   Adds policy on Premium Well and Premium Call brands

   Changes Golf NIBD standard to 15% for all Army golf course operations

   Adds labor benchmark of Not To Exceed 50% for total golf operation

   Updates pricing for Golf Table 15 and Bowling Table 9

   Adds new pricing tier to Golf, Table 15




               IMCOM Policy 44, Corporate Strategies · 31 March 2008
                                                  Table of Contents
                                                                                                     Paragraph Page
Chapter 1
General
Purpose ..................................................................................................1-1    3
References ..............................................................................................1-2     3
Explanation of abbreviations and terms .......................................................1-3                3
Records Management ...............................................................................1-4            3

Chapter 2
Responsibilities
HQ IMCOM Director, Morale, Welfare, and Recreation ...................................2-1                           3
IMCOM Region Directors/Region Deputy Directors ........................................2-2                          4
IMCOM Garrison Commanders/Managers, or Garrison Deputy Commanders ....2-3                                           4
Garrison Directors, Morale, Welfare and Recreation ......................................2-4                        5
Managers/Supervisors ..............................................................................2-5              5

Chapter 3
Business Programs Corporate Strategy
Business Activities ....................................................................................3-1         6
Food and Beverage (F&B) ..........................................................................3-2              10
Catering ..................................................................................................3-3     12
Bowling (Category B and Category C) .........................................................3-4                   16
Golf ........................................................................................................3-5   20

Chapter 4
Performance Improvement Program
Reporting Process ....................................................................................4-1          25
Reporting Requirements ............................................................................4-2             26
Performance Improvement Program Policy ..................................................4-3                       26

Appendices

A. References ..........................................................................................           28
B. Business Plan .......................................................................................           29
C. Scorecards ..........................................................................................           29
D. Competitive Price Surveys…………………………………………………………………………….. .                                                      29

Figure List
NA

Glossary




                          IMCOM Policy 44, Corporate Strategies · 31 March 2008
Chapter 1
General

1-1. Purpose

This policy prescribes policies, responsibilities, and procedures for administering the United
States Army, Installation Management Command (IMCOM) Nonappropriated Funds (NAF)
Business Programs Corporate Strategy (BPCS) in accordance with AR 215-1, Military Morale,
Welfare, and Recreation (MWR) Programs and Nonappropriated Fund Instrumentalities
(NAFI).

1-2. References

Required and related publications are listed in appendix A.

1-3. Explanation of abbreviations and terms

Abbreviations and terms used in this policy are explained in the glossary.

1-4. Records Management

Records created as a result of processes prescribed by this policy must be identified,
maintained, and disposed of according to AR 25-400-2, The Army Records Information
Management System (ARIMS), and DA Pam 25-403, Guide to Recordkeeping in the Army.
Record titles and descriptions are available on the Army Records Information Management
System website (https://www.arims.army.mil).

Chapter 2
Responsibilities

2.1. HQ IMCOM Director, Morale, Welfare, and Recreation (IMMW) will -

   a. Provide guidance and oversight for the implementation, execution, and monitoring
the corporate strategy.

   b. Properly coordinate all revisions and updates to this policy with:

       (1)   IMCOM Region Directors
       (2)   HQ IMCOM Directorates
       (3)   HQ FMWRC Central NAF Contracting
       (4)   Family, Morale, Welfare and Recreation Command (FMWRC)
       (5)   Assistant Chief of Staff Installation Management (ACSIM)
       (6)   Assistant G-1 for Civilian Personnel Policy, NAF Program Management Division

   c. Perform annual review, monitoring, and evaluation of the IMCOM Business activities
and programs scorecard evaluations and the BPCS program.

   d. Provide funding and logistical support to conduct meetings of the Business Programs
Steering Committee (BPSC) and supervise their effort to review, revise, maintain and
implement the BPCS.




                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
2-2. IMCOM Region Directors/Region Deputy Directors and Director FMWR
(DFMWR) will -

   a. Implement the corporate strategy at all garrison business activities in IMCOM.

  b. Support the attendance of appropriate region and garrison personnel at BPSC
meetings in order to review, revise, maintain, and implement the BPCS.

   c. Provide region level evaluation of the progress of implementation of the BPCS for
each garrison and the region overall.

   d. Promote and support BPCS fees and pricing policy for standard products, programs,
and services.

     e. Promote participation in central procurement enterprise and mandatory purchasing
initiatives.

    f. Support Region Program Analysts on-site analysis and completion of scorecards and
internal controls checklists IAW the provisions of this policy. Complete region evaluations of
garrison business activities and enterprise IAW the BPCS and the BPCS score sheet and
internal control checklist.

   g. Educate senior mission commanders, tenant units, and garrison commanders on the
benefits and requirements of the BPCS.

   h. Provide direct assistance to garrison MWR and business activities in the planning and
execution of the BPCS.

   i. Forward requests for interpretation of this policy to FMWRC.

2-3. IMCOM Garrison Commanders/Managers, or Garrison Deputy Commanders
will -

   a. Implement and execute the requirements of the BPCS.

    b. Support the attendance of appropriate garrison personnel at BPSC meetings in order
to review, revise, maintain, and implement the BPCS.

   c. Provide garrison level evaluation of the progress of implementation of the BPCS for
each business activity and the garrison overall

   d. Require, support, and implement BPCS fees and pricing policy for standard products,
programs, and services.

   e. Require all activities participate in central procurement enterprise and mandatory
purchasing initiatives.

   f. Require completion of evaluations of garrison business activities and enterprise IAW
the BPCS and the BPCS score sheet and internal control checklist

   g. Educate senior mission commanders, tenant units, and managers on the benefits and
requirements of the BPCS.


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
   h. Provide funding and support to garrison MWR and business activities in the planning
and execution of the BPCS.

   i. Forward requests for interpretation of this policy to FMWRC.

2-4. Garrison Directors, Family, Morale, Welfare and Recreation will -

   a. Implement and execute the requirements of the BPCS.

    b. Require the attendance of appropriate garrison personnel at BPSC meetings in order
to review, revise, maintain, and implement the BPCS.

   c. Provide garrison evaluation of the progress of implementation of the BPCS for each
business activity and the garrison overall

    d. Require managers and business activities to implement BPCS fees and pricing policy
for standard products, programs, and services.

   e. Require all activities participate in central procurement enterprise and mandatory
purchasing initiatives.

   f. Require completion of evaluations of garrison business activities and enterprise IAW
the BPCS and the BPCS score sheet and internal control checklist

   g. Educate senior mission commanders, tenant units, managers, customers, and
garrison commanders on the benefits and requirements of the BPCS.

   h. Provide funding and support to garrison MWR and business activities in the planning
and execution of the BPCS.

   i. Forward requests for interpretation of this policy to IMCOM Region.

   j. Work with Provost Marshal to develop reasonable access programs that allow
authorized users easier access to our facilities. This program should include identification
cards and vehicle passes.


2.5. Managers/Supervisors will -

   a. Implement and execute all requirements of the BPCS.

   b. Attend the BPSC meetings when required in order to review, revise, maintain, and
implement the BPCS.

    c. Evaluate and report the progress of implementation of the BPCS for each business
activity and the garrison overall

   d. Implement and maintain BPCS fees and pricing policy for standard products,
programs, and services.

   e. Require all activities participate in central procurement enterprise and mandatory
purchasing initiatives.


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
   f. Require completion of evaluations of garrison business activities and enterprise IAW
the BPCS and the BPCS score sheet and internal control checklist

   g. Educate senior mission commanders, tenant units, customers, and employees on the
benefits and requirements of the BPCS.

   h. Provide funding and support to garrison MWR and business activities in the planning
and execution of the BPCS.

   i. Forward requests for interpretation of this policy to garrison DFMWR.

Chapter 3

Business Programs Corporate Strategy (BPCS)

3-1. Business Activities

   a. Mission Statement: Commanders will provide business program facilities and
services at levels that meet or exceed customer expectations and result in profitable
operations.

   b. Strategic Vision Statement: Commanders ensure customers have access to MWR
business activities and programs which deliver competitively priced quality products, in a
safe environment, while achieving Army NAF Operating Budget financial standards.

    c. Management Philosophy: IMCOM is committed to effective and efficient management
of Business Programs operations. Implementation of the corporate strategy will provide
sound stewardship of resources. Commanders and managers will apply best business
practices to meet established NAF Operating Budget Guidance financial performance
objectives.

   d. Corporate Strategy: The BPCS is a systematic approach to ensure programs provide
expected services and produce sufficient revenues to maintain and improve operations in
the future. Business programs are revenue generating MWR programs unless otherwise
authorized through the waiver process outlined in Chapter 4, Performance Improvement
Program (PIP). Business programs are established based on validated customer demand,
market conditions, and the ability to generate sufficient profits to cover operational program
expenses. Business programs include retail, food, beverage, dining, snack bar, catering,
social events, entertainment, and other hospitality or recreational services normally
associated with club, restaurant, bowling center, or golf course operations. Multiple
programs are usually co-located to maximize resources and minimize expenses.

   e. Revenue Generating Activities: All business programs have the potential to be profit
generators for shared MWR funds by achieving the Army’s Net Income before Depreciation
(NIBD) financial standards. The BPCS implements a corporate approach intended to make
every business operation a contributor to funding available for Army-wide, regional, and
garrison use. This policy sets the procedures, minimum pricing levels, responsibilities, and
well-defined rules for the programs.

   f. Components: Performance measures, professional development, competitive price
surveys, management compensation, incentive plans, program staffing, pricing, and the
IMCOM PIP thresholds are components within general procedures for all business
operations, activities, and programs.

                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
    g. Participation: The policies and guidelines outlined herein are mandatory in terms of
pricing and standards. Exceptions to pricing and fees will be considered only under special
local conditions and justified in writing through the Region and to IMCOM Headquarters.

    h. General procedures: The general procedures outlined in this section are mandatory
for all business operations, activities, and programs.

      (1) PIP Program and Thresholds: Business activities and operations are placed in the
program when losses exceed established loss thresholds over 4 quarters, based on a semi-
annual review. PIP process and procedures are IAW Chapter 4 of this policy.

      (2) Business Plans: All business operations will develop and implement a business
plan, which will include the action plan, as an annual requirement utilizing the IMCOM
Business Plan format. The business plan is a web based template available at
http://www.armymwr.biz/business_programs.htm. This link will be inserted in the NAF
Operating Budget Guidance and included in the IMCOM MWR and FMWRC web pages.
Business plans establish how critical income and profits will be achieved for the period
covered and support the creation of the annual operating budgets.

      (a) BPSC and FMWRC will implement and maintain the web-based business plan
system. The business plan must be complete, support the needs in the local garrison
market, and meet budget objectives. Action plans must be complete and include specific
resourced and realistic action items that will implement improvements and resolve
operational problems, and the action owner and completion date (month/year). Garrison
operations will be evaluated using the Business Plan, Action Plans, Internal Control
Checklists, Audits, Corporate Strategy Scorecard, and Budget performance compliance.

      (b) Each activity manager will include as part of their business plan a well thought
out contingency plan for reduced or curtailed operations that may occur during major troop
deployment. Operations will submit business plans (including contingency plans) with their
annual budget proposals for Garrison Commander approval.

      (c) The Garrison Commander will submit plans and budget to the region for review
and approval. Proposals for new operations will obtain region approval of business plans
and action plans before the garrison commits any NAF or APF resources to the new
operation.

     (d) Regions and garrisons will ensure that approved plans and budgets are provided
back to garrison-level functional managers for operational purposes. Region and garrison
managers will provide oversight to ensure compliance with the business plan, action plan,
and this policy (e.g., develop marketing strategies to increase program growth).

      (e) Management will review internal controls, analyze fee pricing and cost drivers for
competitiveness, determine appropriate staffing levels, and determine right sizing of
service. Operations that revise budgets during the fiscal year must revise their existing
business plans and action plans and resubmit for garrison and region review/approval.

      (f) Business activities and program managers will review/revise business plans
annually (monthly action plan review and update) for submission with annual budget
proposals. A deliberate process and formal document is necessary to communicate to all
parties who will contribute to improvement of specific operations. Garrisons will use the
standard business and action plan format to conduct garrison wide assessments.

                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
      (g) Specific program requirements for business plans are found in the respective
Food and Beverage, Golf, and Bowling sections of the Corporate Strategies.

      (h) All IMCOM NAFI Business Activities (including AAFES partnerships, Public Private
Ventures, Enhanced Use Lease, Name Brand Fast Food, Name Brand Casual Dining, or other
revenue generating activities) will comply with the requirements of the corporate strategy
by developing and implementing comprehensive business plans and action plans.

       (3) Management Performance Standards: Manager’s performance standards will be
based on the business programs’ performance drivers. Performance drivers will be
incorporated into business plans, scorecards, and checklists and linked throughout the
entire planning, execution, measurement, evaluation, and review/revised operational
processes. Garrison level leadership has the authority to structure the performance
standards within these common drivers to support their operational needs. All strategies
and actions in business plans will be measurable and relate back to these seven drivers:

      Meeting Benchmarks
      Personal and Professional Self Development
      Staff Training and Development
      High Quality Hospitality Service
      High Quality Products
      High Quality Facilities
      Effective Business Processes

Performance Standards using the seven performance drivers are required for all NF 3, 4,
and 5 revenue generating facility managers.

      (4) Management Incentive Plans (MIP): MIPs are required for all NF 3, 4, and 5
revenue generating facility managers. Additional management positions under the facility
or general manager level may also be included in incentive plans. All incentive plans are
subject to limitations within AR 215-3 (NTE $25K annually). MIPs will be developed and
implemented annually and may be adjusted or dissolved at the discretion of the
commander. The details of the plan will be captured in a memorandum for record, signed
by the employee, Garrison DFMWR, and Region DFMWR, and attached to the negotiated
budget and forwarded to the respective region. Once the operational budget is approved, a
copy of the plan will be sent to NAF Financial Services along with certification of funds from
the fund manager for payment at times specified in NAF operating budget guidance.

        (a) The MIP is based on dollars earned over the approved budgeted NIBD. The
minimum split is 75 percent to the facility and maximum 25 percent to positions that
contribute directly or indirectly to the financial success and quality service improvements in
specific operations. There will be a separate agreement for each position included in the
overall incentive plan. At the end of each Fiscal Year (FY) the actual results are compared
to the approved budget. Corporate financial goals and NIBD standards are the focus of the
approved budget. The amount earned over the approved budgeted NIBD is split according
to the share ratio in the approved agreement.

      (b) Incentives for operations on the PIP list and/or below corporate goals and
standards may be awarded based on financial improvement terms that are negotiated and
approved by the Region Director in advance. Agreements will not be based on negative
NIBD unless specifically included in PIP business plan approved by the Region Director. No


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
agreement will be approved for facilities exceeding PIP management time limitations or on
waiver under PIP criteria.

       (c) Additional goals such as reducing other operating expenses, labor, and cost of
goods sold (COGS) below benchmarks can be included in the agreement plan, but are
secondary to approved budgeted NIBD. These benchmarks and goals are not used to
automatically disqualify the management incentive plan. Additional goals/rewards (such as
service and facility improvements), can be considered outside the qualified management
incentive plan.

       (d) Incremental participation (assuming management duties during the budget cycle
or departing during the budget cycle) requires the reconciliation and approval by the Region
Director of incremental agreement allocations and will not be back dated or post dated.

       (5) Professional Development: Position appropriate training in accordance with the
Army Civilian Training, Education, and Development System (ACTEDS) Career Ladders is
mandatory (http://www.armymwr.biz/acteds_51.htm) for NF 3/GS-5 and above. For
employees below these grades, managers will develop plans for program specific training
and professional development using ACTEDS. All business program personnel will have an
Individual Development Plan (IDP) that is updated annually using the standard format
(http://www.imcom.army.mil/site/hr/wfd/IDP%20FORM.doc).

       (6) Competitive Price Surveys: Annual surveys will be conducted at a minimum of
three comparable golf, bowling, and food & beverage operations using the standard IMCOM
competitive survey found in appendix D. Additional competitors will be surveyed if they
directly compete with local operations. The competitive price survey should compare
current local Army rates, minimum rates set by the Corporate Strategy, and competitor’s
rates. Competitive price surveys will be submitted to the Region with the annual operating
budget.

      (7) Performance Measurement: In order to measure performance and establish a
baseline, IMCOM business activity metric scorecards (Appendix C) and internal control
checklists (Appendix B) are established for food & beverage, bowling, and golf operations.
Program assessments using the scorecards and internal control checklists will be completed
by the Region Business Programs Analyst during annual site visits. These assessments
must be completed by the Region Business Programs Division, on-site at all garrisons with
Business Program activities, on an annual basis to ensure compliance with IMCOM policies.
Garrison business activities will conduct self assessments using the scorecards and internal
control checklists and submit completed assessments to the region with the annual
operating budget.

       (8) Standard Pricing Structure: The minimum fees for golf and bowling will be
established in the NAF operating budget guidance and will be fully implemented with the
approved budget. Incremental increases in pricing implemented over a reasonable budget
period are recommended. Exceptions to the pricing guidelines require written authorization
through the region to FMWRC. Bowling and golf fees will not be less than 75 percent of the
prevailing off-post rate. Pricing of food and beverage items are determined using published
Army benchmarks in conjunction with sales mix calculations.

      (9) All activities will make maximum use of Army standard point of sale (POS)
systems: GolfTrac and RecTrac. Army standard systems will be used to generate critical
management reports for effective operations, i.e., FoodTrac, EventMaster, and Time Labor
Management System. Usage of systems listed is mandatory.

                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
3-2. Food and Beverage (F&B)

   a. F&B as defined in AR 215-1, Chapter 8, para 8-24, will be operated in accordance
with DoD and DA directives, and applicable regulations.

Food, Beverage and Entertainment (F&B) Strategy (includes all F&B in program codes KA,
KE, KF, KG, KL, KM, LE, LL, LQ, LT)

Table 1 - Components of F&B programs


        Regular Bar                                Bulk Beer
        Theme Bar                                  Retail
        Catering (Private) bar                     Special Events
        Full Service (Dining Room)                 Membership Programs
        Casual Service (Dining Room)               Administrative (includes contracts,
        Quick Service (Snack Bars)                  entertainment, management, and facility
        Theme Food                                  expenses, Army Recreation Machine
        Catering                                    Program)
        Bingo                                      Concessionaires: Record in appropriate
        Free Standing Snack Bar                     departments, i.e., food and beverage, pro
        Mobile Snack Bars                           shop, etc.




Table 2 – Army Benchmarks

            F&B       Regular    Theme      Catering     Dining     *Snack
                                                                             Catering   Bingo
            All       Bar        Bar        Bar          Room       Bar

 LABOR      42%       30%        30%        25%          40%        35%      30%        N/A

 COGS       40%       25%        25%        25%          38%        35%      30%        N/A

 OOE        10%       10%        10%        5%           10%        10%      10%        N/A

 NIBD       8%        35%        35%        45%          10%        15%      30%        15%


*Snack Bars - When alcoholic beverage sales exceed 25 percent of total snack bar sales, all
sales will be accounted for in the Regular Bar Department (01). The department includes all
associated costs, expenses, labor, equipment, and necessary inventory to support regular
bar operations.

   b. The financial standard for F&B operations is eight percent.

    c. The overarching responsibility and focus of F&B Managers is developing, marketing,
and professionally providing F&B products and services that meet the desires of the
customer. Army MWR will operate F&B activities that represent leading commercial industry
trends by properly positioning the business activity; creating new business activity models
by contracting with name brand restaurants through Public Private Venture (PPV), licensing
agreements, and franchises; partnering with Theme operations; partnering with AAFES in


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
new operations and as replacements for existing operations; and divesting operational
responsibility of F&B programs where appropriate. In order to develop garrison plans to
meet the financial standards, the following items need to be incorporated:

       (1) Market Density: F&B managers will coordinate with marketing services and other
relevant installation personnel to ensure that F&B operations are of the correct size and are
sufficiently dispersed geographically to maximize revenue generating opportunities and
minimize internal MWR competition. Existing agreements between FMWRC and AAFES
require assessment of potential impact that any new F&B operation will have on current
AAFES and MWR operations.

       (2) Marketing: Marketing research is a critical element which must be addressed in
the initial stages of developing a business plan and operating an F&B facility or program.
Full disclosure of market segments, competition, and market demands ensure solid footing
for planning and execution of any operation. Development of marketing plans should serve
as the blueprint for how the component parts of the operation will be forecasted, advertised,
promoted, set up, and executed.

      (3) Pricing: Pricing structure should be driven by competition and financial
benchmarks. To ensure F&B standards are achieved, costing/pricing data should be
submitted annually for regional review and approval. The use of FoodTrak and/or
EventMaster data will guide the development of menus, room rental fees, and delivery
charges.

       (4) Control Expenses: The use of Army corporate purchasing programs is mandatory
(Prime Vendor, IMCOM Mandated Products). During deployment, training exercises, or
significant population fluctuations, operations should be adjusted to reflect market size.
See contingency plan in business plan section. The use of approved automation, such as
FoodTrak and EventMaster, is mandatory. Internal controls are required for cash,
inventory, and property to reduce shrinkage and to keep product cost at the lowest levels
(per AR 215-1). Use of internal control spread sheet as an annual self assessment is
required.

       (5) Labor Management: Refer to Table 2 for maximum percentages. Most
operations have numerous positions providing benefits making it difficult to manage labor
cost during market fluctuations and periods of increased security. The majority of F&B
positions should be performed by flexible employees. While there are exceptions based on
location, Army benchmarks are designed for a typical Army F&B facility to achieve
profitability.

      (6) Proper Labor Accounting: All personnel will be accounted for in the department
they work. Staffing includes the appropriate ratio of permanent employees to flexible
employees.

       (7) F&B Program Managers’ Compensation: The total compensation package for F&B
managers should be comprised of a salary and a management incentive plan. The
following salaries are considered reasonable guidelines based on similar operations in
private industry for a base salary. Regional variances should be considered based on cost of
living, size of operation, and available labor market.




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
Table 3 – Food & Beverage Base Salaries

                              Lower                   Median                 Upper
 Position
                              Percentile              Percentile             Percentile
 Full Service Manager         $34,980                 $40,810                $52,470
 Snack Bar Manager            $29,150                 $32,670                $39,600
 Assistant Unit Manager       $29,150                 $32,670                $39,600
 Night Manager                $24,530                 $30,360                $38,500
 Banquet Manager              $30,360                 $37,290                $50,160
 Catering Manager             $34,980                 $40,810                $50,160
 Chef                         $33,770                 $40,810                $48,950

   d. Premium Well Strategy for Bar Operations:

    (1) This strategy will:
    (a) Improve product quality and customer brand recognition.
    (b) Reduce inventory lines.
    (c) Establish a distinct point of difference from our competition in both pricing and
product quality.
    (d) Improve bar profitability by increasing contribution income per sale.

     (2) Financial benchmarks for bar operations are shown in table 2. Most important of
these is to achieve an overall NIBD of 35% or greater in bar operations.

     (3) Bar operations with departments 01, 03 or 25 will establish two pricing tiers,
Premium Well and Premium Call, rather than the typical three tiers. Selected well and call
brands are established in January of each year based on a survey of best selling products in
AAFES Class VI stores and disseminated through the regions to Installations. FMWRC has
responsibility for this action. Installations have the flexibility to stock additional brands that
are locally popular.

      (4) The standard pour for distilled spirits is one ounce. This keeps our prices as low as
possible and helps to control over-consumption. Cocktails that contain more than 2 ounces
of liquor/liqueur will be "built" using a ½ ounce pour for each ingredient based on the
standardized recipe. If the requested cocktail has not been programmed into the Point of
Sale (POS) with an associated recipe, it must be “built” using the keys on the register;
ringing in the individual brands of liquor/liqueur poured. Half-ounce key will be
programmed into point-of-sale systems to properly total the sale.

      (5) Only Premium Well and domestic beers are authorized to be used in reduced
pricing programs.

      (6) Per IMCOM Policy Memorandum # 44, para 3-1.h.6. To get a complete overall
picture of competition a survey of a minimum of three competitors providing similar or like
services and goods is required. It is important to compare prices with like facilities as well
as like products. Comparison of domestic beers, import beers, premium well, premium call,
and house wine is required. Remember when comparing facilities look at the brand names
your competitor used for well and call. Look at the decor and services provided, check the
types of imported beer and only compare against brands you carry. Is the house wine, box

                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
or bottle? Ensure you compare your facility with establishments that are similar in size,
decor, service, and product.

    (7) Marketing: Include "We Proudly Serve a Premium Well" on all appropriate
marketing material.

     (8) AAFES Class VI is the distilled products preferred prime vendor. Activities are
required to purchase a minimum of 80% of total distilled product purchases through AAFES
Class VI where available. Participation must be maximized to take advantage of pricing and
rebate volume. Non- AAFES Class VI buys can include specialty items not readily available
through AAFES.

3-3 Catering

   a. Catering Strategy: Catering operations are conducted IAW AR 215-1, paragraphs 8-
24c(3) and 10-4.


Table 4 – Components of Army Catering


         Private Events                           Special Events
         Official Military Events                 Administration
         Catering (Private) bar                   Catered Food
         Entertainment                            Themed Events
         Conferences and Meetings                 Expositions


    b. Performance Measures: The Army Catering Desk Reference contains standard
operating procedures. Catering is accounted for as departments within the appropriate
MWR program. Stand alone catering facilities will use program KM. Catering service may
also be offered from bowling centers and golf courses for events such as private outings,
tournaments, and birthday parties. Catering sales and related expenses will be recorded in
department 03 (Private Party Bar), department 13 (Private Party Food).

Table 5 – Catering Financial Standard/Benchmarks

         Benchmark                   Measurement
         Food COGS                   30%
         Food Labor                  30%
         Food OOE                    10%
         Food NIBD                   30%
         Bar COGS                    25%
         Bar Labor                   25%
         Bar OOE                     5%
         Bar NIBD                    45%
         Overall Catering NIBD       30%

   c. Room Fees: Operations will charge room fees to cover all costs associated with the
use of catering rooms/meeting space. Official events, special events hosted by private
organizations, and events held in Community Activity Centers are not exempt from room
fees. Semi-annually facility managers will prepare cost sheets for common expenses to


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
determine actual charges. These costs would include linens, labor costs, and other
associated expenses. Special requests beyond the standard set-up will be charged
accordingly. Fees for recurring set ups such as podium packages may be pre-set and will be
reset annually at a minimum.

   d. Meetings. Standard room fees are based on the capacity of the room.

   e. Catered events, where food and non-alcoholic beverage purchases exceed four times
the amount of the standard room rental fee (see paragraph 3-3.c), the fee will be waived.

   f. Labor Management: Accurate labor expensing is critical to financial success.

       (1) Employees may work in catering and in the dining room or bar during the same
shift. Costs for their labor must be assigned and transferred to the appropriate department
based on preponderance of time.

      (2) Events held on Sundays and/or holidays will incur an additional per person
charge to cover employees’ premium pay and benefits.

      (3) Staffing standards outlined in the catering desk reference are industry standards
and are considered sufficient to make each event successful. Additional staff can be
arranged for an additional minimum charge per hour per employee with an overtime rate of
per hour per employee when appropriate based on local wage rates plus benefits.

    g. Catering Sales Manager Compensation: Total compensation package for catering
sales managers consists of a reasonable salary, a percentage of service charges, and
quarterly incentives based on quarterly sales goals established locally. Compensation for
achieving quarterly sales goals will be documented during the budget process, approved by
DFMWR, and submitted to Region with Business Plan. Catering Sales Manager will not be
included in the Manager Incentive Plans. Salary guidelines are provided in Table 3.

   h. Deposits: Customers are required to pay deposits for all private/unofficial events.
Deposits must be paid at the time they sign the contract for their event. Deposit amounts
are shown in the “Catering Information and Pricing” section of the catering manual.

   i. Room Reservations:

      (1) Telephonic reservation requests are considered tentative.

      (2) All reservation requests must be followed by a signed contract and applicable
deposit within 72 hours of making the reservation. Reservations without deposit are subject
to cancellation.

      (3) The customer signing the contract is responsible for the event and is the only
person authorized to make changes to the contract.

      (4) Use of room is for a standard maximum of four hours. A reasonable amount of
time in advance of the event will be allowed for the customer to provide their own
decoration. Additional time may be added to the contract in consideration of additional
fees.




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
    j. Minimums for holding events will be established locally. The approximate number of
attendees will be provided at the time of making the reservation. This number will
determine the space required. The number will be updated 30 days before the event.

   k. The guaranteed number is required at least 72 hours before the event. This is the
number of attendees that the host is responsible to pay for. However, if participation is
greater than the guarantee, the event host will be charged for the actual number of meals
served.

   l. Facility management reserves the right to reassign the event to a smaller room or
cancel the event if participant numbers decrease below established minimums.

   m. A minimum 18% service charge will be applied to all food and beverage purchases.

   n. Catering managers will use RecTrac, EventMaster and FoodTrak automation in
accordance with this policy and the related desk reference.

      (1) Party contracts will be produced either by RecTrac, EventMaster or pre-numbered
paper contracts issued by Financial Management.

      (2) EventMaster and FoodTrak will be synchronous via software interface.

      (3) EventMaster will be used to produce customer invoices and management reports.

   o. Five Star Catering Menu Procedures

      (1) The Army Five Star Catering Menu Program will be used to standardize products
and services offered in Army facilities worldwide. This is a mandatory program for all Army
Morale, Welfare, and Recreation (MWR) Catering Programs and is Army Policy.

       (2) The purpose of this program is to standardize menu items and recipes in facilities
throughout the Army. The Five Star Menu is an integral part of the overall Army plan to
revitalize clubs, bowling, and golf activities; create value by enhancing quality, product,
service consistency, and overall perceived value. Using Five Star menu items standardizes
training, eases procurement of products, and standardizes food quality thus allowing
management to concentrate on customer service.

      (3) In order to reach the goal of standardization, Army MWR Catering programs will
be required to maintain an 80% Five Star core-catering menu and comply with buffet
standards as outlined in this guide.

      (4) Responsibilities

       (a) FMWRC: Will provide documentation and standards to include: menu samples
where applicable, recipes, product specifications, nutritional analysis, standard equipment
listing, Five Star Menu operational manuals and recipe updates. Will provide Five Star Menu
courses to provide the necessary training on the preparation and presentation of the Five
Star Core Menu items.

       (b) IMCOM Regions and Garrison Staffs: Track and validate that all activities under
their oversight comply with all menu requirements outlined in this guide. Assessments will
be completed during annual site visits by Region Business Program Analysts.


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
       (c) Garrison Commander/DFMWR: Through the Business Operation Chief (BOD)
ensures implementation of and compliance with the Army policy on Five Star Core Menu.
Ensures proper communication and marketing are accomplished to promote the food
program and to adhere to the policy of the Five Star Core Catering Menu Program on the
installation.

      (d) BOD/Club Manager: The BOD and club manager are the two key people in the
implementation of this policy. Their commitment is essential to ensure this program is
properly implemented and executed.

      (1) Manage the Army Five Star Core Menu IAW the established recipes and
standards.

      (2) Develop menus that meet Five Star Core Menu requirements.

      (3) Review cost cards as required on a quarterly basis

      (4) Maintain standard food specifications for the mandatory Five Star Core Catering
Menu items and ensure specifications for all other menu items meet or exceed the
requirements provided in the core catering menu “Manufacturer Specification Sheet”.

     (5) Recruit, hire, supervise, administer, and train staff on established systems,
production, and presentation standards.

      (6) Work with marketing to aggressively develop and implement marketing,
promotions, advertising, and merchandising food programs that support the Five Star Core
Catering Menu.

     (7) Identify and purchase equipment and supplies within the established operational
budget.

      (8) Ensure established nonappropriated fund accounting procedures and
requirements are maintained.

       (9) Maintain a daily financial summary to include data on separate day-parts and
activities

       (10) Forecast, develop, revise, and maintain capital requirement budgets within
established standards for replacement of equipment items.

      (11) Installation (DFMWR or Business Division Chief) should:

       (12) Ensure the Core Menu’s standards are maintained in accordance with Army
Policy and Instructions.

   p. The standard measurement for compliance is that catering operations use at least
80 percent of the Five Star Core Catering Menu items (Catering Menu template).

      (1) Recipe Validation: Recipes are considered core when they are produced and
presented exactly as outlined in the Five Star Core Catering Menu guide/core menu software
program, to include all related sub recipes and names. (Substitution of side items is
permitted upon customer request). The description and name are mandatory for all
Catering menu items.

                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
       (2) Ingredients: You must maintain the exact standard specifications for all
mandatory Five Star core menu items. For non-mandatory items you can substitute like
ingredients in a recipe. The ingredient must meet or exceed the quality level of the
specification provided in the core, i.e., you can substitute a 6 oz Tyson Chicken Breast with
a 6 oz Perdue chicken breast, but you can’t substitute a 6 oz with an 8 oz.

      (3) Non-Mandatory Core Menu Items: Managers are highly encouraged to
incorporate non-mandatory Five Star Core Menu items into their menus. The Five Star Core
Catering Menu database, software, will be periodically updated and available as a tool for
managers to further develop their menus and stay on top of industry trends. Managers may
incorporate local recipes and menu items, not to exceed 20% of the total menu offerings.
The recipes will be submitted to FMWRC, Business Programs, for review.

    q. Train key club employees so they understand and can explain the basic information
about Five Star Core Catering Menus and the Five Star Core Menu policy. Tailor the
following training scenario to meet local conditions. The objective is to ensure the staff
understands and fully supports the new Five Star Core Catering Menu Program and can
assist customers with questions concerning item preparation and taste.

   SUGGESTED STAFF TRAINING SCENARIO, initial training/food preparation (4 hours)

       (1) Have your kitchen staff prepare and present the core items that will appear on
the menus. Stress the use of recipes, the new specification requirements for selecting recipe
ingredients, availability of nutritional information for recipe items, and plate presentation.
Using the Core Recipes will standardize food quality and provide consistency. Estimated
time required: 4 1/2 hours or 15-20 minutes per new menu item prepared. Allow kitchen
staff along with the wait staff to sample the menu items. This will enable them to answer
questions from the guests on preparation and taste.

       (2) Core Catering Menu training class: Five Star Core Catering Menu training is
conducted on a regular basis at the FMWRC Academy in Arlington VA.. Contact them for
class dates and quotas.


3-4. Bowling (Category B and Category C)

   a. Category B Bowling Centers are included in the corporate strategy in terms of
performance criteria. Funding at the appropriate Common Level of Support (CLS) level is
required to be implemented IAW NAF Operating Budget Guidance.

   b. Category C Bowling may receive CLS funding under provision of AR 215-1 for remote
and isolated locations.

   c. Bowling Program Strategy (includes program codes KA and LE)

Table 6 - Components of Bowling Programs




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
        Lane Operations                           Bingo
        Bowling Equipment                         Promotions / Special Events
        Pro Shop                                  Administrative (includes contracts,
        Regular Bar                                entertainment, management, and facility
        Snack Bars / Parties                       expenses)
        Army Recreation Machine                   Concessionaires: Record in the appropriate
         Program                                    department, i.e., food and beverage, pro
        Video Arcades                              shop, etc.




Bowling is an entertainment business and must provide a variety of products to attract both
casual and repetitive bowlers. Customers are willing to pay for entertainment opportunities
that are wholesome, multifaceted, and offer an exceptional experience. Bowling centers
must be fun, inviting destinations where people enjoy the programs and activities. Bowling
Center Managers must develop a culture focused on creating programs and maximizing
participation in activities offered at the centers. Bowling has to be packaged as a valued
entertainment option. An overarching responsibility and focus of bowling managers has to
be the developing, marketing, and selling of bowling programs, products, and services that
meet market demands.

     (1) Performance Measures: The MWR Board of Directors approved standards and
benchmarks are in tables 7 and 8.

Table 7 - Financial Standards                Table 8 – Bowling Benchmarks

           NIBD Financial
 Region    Standard for                  Benchmark                              Measurement
           Category C
                                         Average Revenue per Line
 KORO      15%                                                                  $2.00
                                         Bowled
 PARO      15%                           Total Center Labor Cost                45%

 EURO      15%                           Lines per Lane per Day                 17
                                         Pro Shop Cost of Goods Sold
 WEST      15%                                                                  75%
                                         (COGS)
                                         Pro Shop Inventory Turnover
 NERO      15%                                                                  3
                                         per Year
                                         Food & Beverage (see F&B
 SERO      15%                                                                  Table 2
                                         Benchmarks)
                                         Category B Centers NIBD                >= $0



      (2) Business Plans: All business plans are prepared using the central web-based
business plan format.

      (3) Action plans: In addition to the business plan, bowling managers need to
incorporate a number of bowling specific actions into an action plan that is designed to


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
expand programming to increase patronage, increase revenue, and maintain and improve
facilities. The action plan must reflect specific tasks for improving lineage and programming
events from the previous year. Managers will develop and implement plans to increase
bowling party business, special events, promotions, and traditional and non-traditional
organized (league) activities during the budget process. Managers will develop and
implement a mandatory 12-month calendar of programming (submitted with business plan)
to draw various market segments to the bowling center, including but not limited to, the
following:

      Food combo pricing
      Youth, Family, and After School Events
      Introductory events to introduce youth, singles, and families to bowling (i.e., Bowling
       Proprietors of America Association (BPAA) Blastoff events)
      FMWRC special events promotions
      Coaching/lessons
      Industry special events and promotions (i.e., Strike Ten)
      Tournaments
      Senior programs
      Holiday themed events
      Corporate functions
      Parties (i.e., birthday, holiday)

       (4) New Bowlers: Managers will aggressively pursue new bowlers through special
promotions and target marketing. Garrisons with bowling centers will submit the
appropriate paperwork to gain Assistant Secretary of the Army for Manpower and Reserve
Affairs (ASA M&RA) approval for use of our bowling centers by veterans. This civilian
population segment already has a connection to the military and is a logical target market.
Managers will develop programs to retain and expand existing leagues and develop new
leagues.

       (5) Coaching: A coaching or teaching program is an integral part of a systematic
approach to increase lineage. All centers are encouraged to have teaching programs to
attract new bowlers and encourage repeat business.


        (6) Maintenance: Facility managers will be knowledgeable of and implement a
maintenance plan as recommended by the manufacturer of equipment specific to each
facility. Managers will develop and implement a systematic approach to maintain and
improve facility conditions and submit with their strategic business plan.

     (7) Financial Goals: All net income standards are reflected in the NAF Operating
Budget Guidance and are mandatory.

  d. Bowling Fees: In order to meet the Army’s bowling recapitalization and construction
needs, and develop a standard pricing structure; fees will be set at a minimum IAW table 9.




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
Table 9 – Bowling Fees


 Activity                                   Minimum Fee

 Lineage Fee (per game)

 Open Bowling                               $2.25

 Adult Leagues and Tournaments              $2.25

 Youth Leagues                              $2.00

 Military Intramural Leagues                $1.75

 Rental Shoes                               $1.75


Note - IAW paragraph 3-1, g. exceptions to pricing and fees will be considered only under
special local conditions and justified in writing through the Region and to HQ IMCOM.

   e. Pro-Shop/Retail Operations: A successful pro shop can be a lineage multiplier but for
most centers a small inventory of bowling aids sold over the front counter is sufficient to
support our clientele. Pro shop merchandise and products should represent current market
demands and trends. To meet the Army pro shop benchmarks (table 6), inventories must
be aggressively managed. High inventory holdover will equal future deferred losses.
Vendors can usually supply balls within a week after ordering making the stocking of large
numbers of hard goods unnecessary. Special orders are the preferred method of providing
bowling balls for our patrons. This quick turnaround effectively makes the vendor the pro
shop warehouse.

    f. New Pro Shops: New pro shops require a comprehensive business plan that complies
with chapter 4, Performance Improvement Program (PIP), before implementation and
starting operations. To include a pro shop in a new construction project, the business plan
for the pro shop will be included as part of the project validation assessment process.

    g. Labor Management: The following professional staff or core staff will be regular full
or part-time status positions. All other positions will be flex status employees as shown on
business needs based on Table 10.




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
Table 10 – Bowling Staff

                              KA                   LE Medium        LE Large
Staff / Positions             (12 lanes or         (13-24           (>24       Department
                              less)                lanes)           lanes)
Operations Staff
General Manager               RFT                  RFT              RFT        G1
Assistant Manager             X                    RPT              RPT        G1
Admin Assistant               X                    X                RPT        G1
Night Manager                 X                    RPT              RPT        G1
Recreation Assistant          X                    X                X          45
Recreation Aide               X                    X                X          45
Maintenance Staff
*Lead Equipment
                              RPT                  RPT              RFT        88
Service
Asst Equipment Service        X                    X                X          88
Lead Lane Attendant           X                    X                X          45
Asst Lane Attendant           X                    X                X          45
Lead Custodial                X                    X                X          G1
Asst Custodial                X                    X                X          G1
Pro Shop Staff
Pro Shop Manager           X                  X               X           39
Recreation Aide            X                  X               X           39
Ball Driller               X                  X               X           39
**Food and Beverage
Staff
Manager                    RPT                RFT             RFT         11,14,26
Food Service Worker        X                  X               X           11,14,26
Bartender                  X                  X               X           1, 25
RFT = Regular Full-time      RPT = Regular Part-time
X = If business warrants, these positions will be filled with flex employees
*In lieu of equipment service positions, maintenance contracts should be
considered, where available, to reduce labor cost and eliminate parts inventories
**Subject to Theme Operations policies vs. local operations

Centers will adjust staffs to meet the labor benchmark based on location, labor market and
center size. Actual staffing should be market driven and produce budgets based on
achieving NIBD standards.

   h. Bowling Managers’ Compensation: The total compensation package for bowling
managers should be a two-tier plan that includes a reasonable salary and a Management
Incentive Plan based on paragraph 3-1.h.5 of this policy. Based on the BPAA industry
compensation study, the salary ranges in table 11 are considered reasonable for entry-level
based on similar operations in commercial industry. For managers to charge for lessons,
the manager must be certified by one of the industry associations and have a written
agreement with MWR outlining compensation details. Regional variances should be
considered based on cost of living, proven performance record, and available labor market.



                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
Management incentive plans should require completion of or show demonstrated continuous
progress towards completing the Army Bowling Certification Program.

Table 11 – Bowling Salaries

                       *KA                      LE Medium                   LE Large
Staff / Positions
                       (12 lanes or less)       (13-24 lanes)               (>24 lanes)

Manager                $30,000 to $39,000       $35,500 to $51,000          $41,800 to $68,300
Assistant
Manager                $23,500 to $28,600       $26,000 to $40,000          $28,600 to $45,000
*APF reimbursable or direct APF Labor


3-5. Golf

Golf Program Strategy (program code LQ)

Table 12 - Components of Golf Programs


       Course Operations                           Golf Car Operations
       Turf Management                             Promotions / Special Events
       Pro Shop                                    Administrative (includes contracts,
       Regular Bar                                  concessionaries, entertainment,
       Snack Bars / Dining Rooms                    management, and facility expenses)
       Lessons                                     Concessionaires: Record in the
       Catering                                     appropriate department, i.e., food and
       Driving Range                                beverage department, pro shop, etc.




Note: An overarching responsibility and focus of golf managers has to be the developing,
marketing, and selling of golf programs, products, and services that retain existing
customers and attract new customers.

   a. Performance Measures: The MWR Board of Directors approved standards and Army
benchmarks are in tables 13 and 14.




                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
Table 13 – Financial Standards      Table 14 – Golf Benchmarks

             NIBD
 Region      Financial                 Benchmark                                Measurement
             Standard
 WEST
             15%                       Total Operation Labor Cost               50%
 (North)
 NERO        15%                       Total Other Operating Cost               25%
 WEST                                  Pro Shop Cost of Goods Sold
             15%                                                                72%
 (South)                               (COGS)
                                       Pro Shop Inventory Turnover per
 SERO        15%                                                                3
                                       Year
                                                                                50% of
 EURO        15%                       Pro Shop Inventory Levels                previous
                                                                                years sales
                                       Rounds Played (based on 200
 KORO        15%                       rounds per 18-holes per playable         70%
                                       day)
                                       Total Maintenance Expense per
 PARO        15%                                                                $25,000
                                       Hole


    b. Business Plans: In addition to the core business plan, golf managers need to
incorporate a number of golf specific actions into their strategic plans in order to expand
programming to increase patronage, revenue, and maintain and improve facilities.

       (1) Business and action plans must reflect plans for increasing rounds played and
events from the previous year. Managers will develop and implement plans to increase
rounds through special events, promotions, and development of new players during the
budget process. Managers have the flexibility to deviate from the basic golf fees when
setting prices to maximize revenue and increase participation through special programming
and events. Managers will develop and implement a mandatory 12-month calendar of
programming (submitted with strategic business plan) to draw various market segments to
the golf operation and increase rounds played.

      (2) Business plans should reflect actions to improve the financial results of food and
beverage operations if they are not meeting the eight percent NIBD standard for F&B
operations.

       (3) Managers will aggressively pursue new players. As a minimum, garrisons will
submit the appropriate paperwork to gain ASA (M&RA) approval for veterans’ use of our golf
courses. This civilian population segment already has a connection to the military and is a
logical target market.

       (4) Establish player development programs that grow more customers and create
additional interest. Some examples are:

      Play Golf America
      Family/Youth Programs
      Install Novice Tee Boxes


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
      Establish special rates for less than traditional 9-hole rounds to encourage additional
       play during slow periods such as late afternoon

   c. Golf Fees and Categories: Low fees directly affect course and clubhouse conditions
and management’s latitude to reinvest in our facilities. Operating costs go up every year,
particularly the cost of labor, and fees must rise as well to keep pace (table 15).

      (1) Standard fee categories will provide fairness, consistency, and common levels of
service across the Army.

       (2) Daily and annual greens fees: To meet the financial standards, all greens fees
will have a set minimum (see Table 15). Installations may establish local promotion rates
for slow play periods such as twilight rates to increase play.

       (3) Car Fees. Golf car income is important to MWR and a large investment has been
made toward providing current golf car fleets at all Army courses. Golf car fees should not
be discounted. Car fees should be closely monitored to ensure rates are comparable to our
competitors. Golf industry typically does not allow private golf cars on courses. Private car
owners/riders will be charged for each rider for each round of golf played. Use of private
golf cars on Army golf courses will be phased out over a 5-year period beginning 1 Oct 07.
No new private golf car registrations will be allowed during the phase-out period. In the
interim, if currently allowed, the private golf cars will be registered, pay a per-rider trail fee,
and a minimum annual storage fee if applicable.

       (4) Golf operations will honor reciprocal play on our courses for personnel who live
further than 50 miles from the installation and have paid advance greens at another Army
installation. These players must show evidence of their paid advance greens fees and will
be charged at least 50 percent of the local daily greens fee.

Table 15 – Minimum Standard Golf Fees

                    Daily Greens Fees            Annual Greens Fees           Golf Car Fees
 Fee Category
                    9-holes        18-holes      Single        Family         9-holes       18-holes

 E1-E6 / Youth      $6.00          $9.00         $360          $540

 E7-O3              $9.00          $15.00        $580          $870

 Authorized
                    $12.00         $19.00        $760          $1,200
 Patrons
 Guest /
                    $15.00         $28.00        $1,200        $1,800
 Public
                    50%            50%
 Reciprocal         Daily          Daily         N/A           N/A
                    Rate           Rate
                                                                              $8.00 per     $12.00
 All Categories     N/A            N/A           N/A           N/A
                                                                              rider         per rider
                                                                              $8.00 per     $8.00 per
 *Private Car       N/A            N/A           N/A           N/A
                                                                              rider         rider
 Private Car - minimum annual storage fee is $360


                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
Note - IAW paragraph 4.g exceptions to pricing and fees will be considered only under
special local conditions and justified in writing through the Region to HQ IMCOM.

   d. Golf F&B Operations: F&B services will be operated as a profit center IAW with the
F&B strategy section of this policy. The use of the prime vendor program is mandatory.

   e. Pro Shop Operations: Pro shop merchandise and products should represent current
market demands and trends. In order to meet the Army pro shop benchmarks (table 14),
inventories must be aggressively managed. Golf merchandise and technology changes
rapidly and product lifecycles on many items is only six months causing inventory to be
outdated quickly. High inventory holdover will equal future deferred losses. Vendors can
usually supply clubs within a week after ordering thereby making the stocking of large
numbers of hard goods unnecessary. Custom club fitting and special orders are the
preferred method of providing golf clubs and club sets for our patrons.

   f. Pro shop Managers should periodically and systematically review pro-shop sales
reports and remove from inventory items with little or no demand.

   g. Control Expenses: Increasing net revenue is extremely important, but just as
important is decreasing expenses in the golf program. The use of Army corporate
purchasing programs is mandatory (Joint Services Prime Vendor, IMCOM mandated
products). During deployment, training exercises, or significant population fluctuations,
operations should be adjusted to reflect market size. The use of approved automation, such
as Food TraK, EventMaster and GolfTrac, is mandatory. Internal controls are required for
cash, inventory, and property to reduce shrinkage and to keep product cost at the lowest
levels (per AR 215-1).

       (1) Golf operations in frost-belt locations should close for some period in the
December - February months to reduce off-season losses. Typically, golf operations should
be closed at a minimum for the first two weeks of the year. Each golf manager will assess
their local conditions and submit annual calendar with business plan through their garrison
to the appropriate region. Flexible staff members will be released until the spring growing
season and the professional staff members are afforded maximum use of annual leave.

      (2) Reinvestment in our facilities is important to keep them current with industry and
protect our investment. Capital purchase and minor construction (CPMC) proposals require
thorough and conclusive research/analysis and result in increased revenue and a positive
return on investment (ROI). While maintenance equipment will not have a positive ROI,
garrisons need to thoroughly evaluate and develop a replacement schedule.

    h. Labor Management: Refer to tables 2 and 14 for maximum percentages. Golf
managers with a teaching certification may serve as both the manager and teaching pro.
While there are exceptions based on location, size, and market, the following professional
staff is the standard to operate a typical 18-hole course and achieve Army benchmarks.
Installations will take action to convert all other positions to flexible appointments. Actual
staffing should be market driven and produce budgets based on achieving NIBD standards.
All personnel will be accounted for in the department they work. Only the general manager,
administrative assistant, and custodial staff should be assigned to Administration
Department G1.




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
Table 16 – Staff for 18-hole Operations

 Staff / Positions               Classification       Department
 Operations Staff
 General Manager                 RFT                  G1
 Administrative Assistant        RFT                  G1
 Golf Professional               RFT                  41
 Pro Shop / Counter              X                    39
 Recreation Assistant            X                    41
 Custodial                       X                    G1
 *Food and Beverage
                                 RFT                  11,14,26
 Manager
 Food Service Worker /
                                 X                    01,03,11,13,14,25,26
 Bar
 Maintenance Staff               X                    X
 Grounds Superintendent          RFT                  88
 Asst / Spray Technician         RFT                  88
 Mechanic                     RFT               88
 Course Maintenance           X                 88
 RFT = Regular Full-time       RPT = Regular Part-time
 X = If business warrants, these positions will be filled with flex
 employees
 *RPT if course is closed in the off-season

     i. Golf Program Managers Compensation: The total compensation package for golf
managers should be comprised of a reasonable salary, lesson income, and a management
incentive plan. Based on the National Golf Course Owners Association compensation study,
salary ranges in Table 17 are considered reasonable for entry-level based on similar
operations in commercial industry. Regional variances should be considered based on cost
of living, proven performance record, and available labor market.

Table 17 – Golf Salaries

Staff /
                       9-Holes             18-Holes           27-Holes          36-Holes
Positions
                       $37,290   to        $54,340   to       $67,980      to   $79,860 to
General Manager
                       $51,370             $67,980            $78,980           $105,380
                       $23,760   to        $31,680   to       $38,830      to   $39,930 to
Assistant Manager
                       $28,380             $41,580            $51,590           $54,780
                       $30,580   to        $39,710   to       $41,910      to   $45,980 to
Head Professional
                       $39,710             $50,930            $51,810           $50,985
                       $24,310   to        $25,300   to       $25,850      to   $30,470 to
Assistant Golf Pro
                       $26,070             $27,830            $29,480           $31,680

    j. Lesson Fee Income: Lesson fee income is a typical income stream for golf
professionals. The recommended split is 20 percent to the operation and 80 percent to the
golf manager. Generally, lessons are given during non-duty time. The fee is dependent on


                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
the individual skills of the instructor, but a minimum of $25 per half hour for a teaching
professional is consistent with similar commercial and municipal courses. Personnel giving
lessons should be a certified golf instructor and must have a written agreement with MWR
outlining compensation details.

    k. Course Maintenance and Conditions: The Army golf goal is to achieve quality playing
conditions comparable to mid to high level municipal golf courses. Army golf strategy is to
develop and implement a systematic approach to maintain and improve playing conditions
at all courses. Course superintendents will prepare an annual maintenance plan as part of
the overall business plan and annual budget submission. The plan should include, but is not
limited to: mowing and fertilizer schedules, comprehensive integrated pest management
plan for insects, problem grasses, weeds and diseases, equipment preventative
maintenance plan/schedule, and maintenance equipment five year purchase plan. All golf
course superintendents are required to successfully complete MWR Academy training
courses directly related to the position.

Chapter 4
Performance Improvement Plan (PIP)

4-1. Reporting Process

   a. FMWRC will collect, consolidate, and analyze financial performance information and
submit a consolidated report to HQ IMCOM MWR listing every activity and location of
Category C operations that are losing more money than the PIP threshold criteria as
outlined in NAF Operating Budget Guidance.

   b. At the same time, FMWRC will notify regions and garrisons when an activity is
reported on the Category C PIP list.

    c. Regions will notify commanders that the activity identified on the PIP list is under
review and take steps to implement the required actions IAW this policy.

   d. DFMWR’s will ensure business activities that are not meeting financial standards
implement appropriate actions and procedures IAW with this policy.

   e. Managers will execute improvement plans, implement cost savings and service
improvement initiatives, and ensure all business activities meet required financial standards.

4-2. Reporting Requirement

All reports are submitted through IMCOM command channels at the 2nd and 4th quarter
financial reporting periods. Monthly reports are required on specific locations that are
chronic (more than two reporting periods) losing activities.

4-3. Performance Improvement Program Policy:

1. The purpose of the PIP policy is to provide guidance to all US Army IMCOM garrison
personnel on Category C Business Performance Improvement Program.

2. This policy applies to all IMCOM Regions and Garrisons. This memorandum supersedes
policy memorandum #42, dated 30 November 2004.



                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
3. IMCOM is committed to effective and efficient management of Category C Business
Operations.

   a. One of the goals of the IMCOM Strategic Plan is to provide sound stewardship of
resources. The main objective to meeting this goal is to apply best business practices to
meet established nonappropriated funds (NAF) operations financial performance objectives.

    b. Activities in this category are not mission essential, but offer desirable social and
recreational opportunities for eligible patrons. Operations are funded through self-
generated revenue with limited appropriated funds, and income is utilized to maintain
infrastructure, expand programs, renovations and new construction. Operations that are
unable to achieve profitability will change their mode of operation or close. The Category C
Business Performance Improvement Program is a systematic approach to ensure losing
business operations become profitable, or receive an exception based on well-defined rules.
This memorandum sets the procedures, timelines, responsibilities, and well-defined rules for
the program.

4. PROCEDURES:

    a. Business activities and operations are placed in the program when losses exceed
established loss thresholds over 4 quarters, based on a semi-annual review. Reviews will
occur at the end of the 2nd and 4th quarter of the year. Operations will be notified in writing
from FMWRC placed in the program, approximately 1 month following the semi-annual
reviews. Garrisons with three or more operations in the PIP are required to conduct a
garrison-wide assessment, and submit a garrison level recovery plan to the Region Director
for review and approval. Operations in the program will remain for a minimum of 4
quarters, and removed only on approval of the IMCOM Deputy Commanding General, based
on profitability over a cumulative 4 quarter time period, closure, or a waiver. Facilities are
required to submit business plans, reduce losses, meet standards, or close unless
specifically authorized by IMCOM HQ to continue operations under a waiver.

    b. Operations will develop a Strategic Business and Action Plan in a standard format
(encl). Operations will be judged, based on their Strategic Business and Action Plans, so it
is important that plans are prepared for completeness, understanding of their markets, and
especially their action plan for resolving operational problems. All plans must answer these
basic questions:

      (1) Is there a sufficient market here to sustain a profitable Category C Operation?

       (2) Are there any staffing issues that would prevent this operation from being
profitable?

       (3) Is the physical plant sufficient to meet the increased demand in order to meet
profitability standards?

      (4) Can the operation be successful under the current mode of operation?

      (5) If done properly without impediments, how long should the transformation take
to break-even? Meet profitability standards?

      (6) What are the external factors that contribute to the operations current failing
performance?


                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
It is imperative that these plans include a strong market analysis, competitive analysis, and
comprehensive action plan that include objectives, actions, responsibilities, due dates,
training, and identify any potential roadblocks. The competitive analysis must include a
review of both internal and external competition, to include operations run by MWR, AAFES,
Troop Dining Facilities, and off-base commercial operations. The competitive analysis will
address each aspect of the operation (i.e. food service, retail and program services). All of
these facilities are competing for the same market. If the market cannot support all of
these programs, then the unprofitable operations will be closed.

    c. Plans will be approved by the Garrison Commander and submitted to their respective
region office. The Region Director will develop operational recommendations and approve
all plans either by memorandum or executive summary for submission to the IMCOM
Deputy Commanding General, by the end of the quarter in which notification is received.

    d. Regions will review the implementation of the strategic action plan monthly, and
submit review to HQ IMCOM quarterly. Regions and garrisons will adjust plans as necessary
to achieve profitability. Garrisons will have 4 quarters from submission to show significant
improvement, IAW an approved strategic action plan. If improvement is on course, the
garrison will have an additional 2 quarters to reach profitability. If progress does not meet
the action plan, the Region Director will decide on closing, consolidating, revising the
recovery plan, or seeking a waiver to continue operating a losing operation. Operations will
have a maximum of 6 quarters to reach profitability from the initial corrective action.

    e. Capital Projects and Minor Construction (CPMC): Existing CPMC guidance remains in
effect for operations in Category C Business Performance Improvement Program status.
Regions will review CPMC proposals from operations on the watch list to ensure adherence
with the approved business plans, ensuring realistic chances for accomplishing return on
investment. Activities are required to submit a business case analysis for all CPMC projects.
This analysis must show in detail how the project fits into the strategic plan, financial impact
on the program, and return on investment. Projects that do not have a significant impact
on improving Net Income Before Depreciation, and directly affect the implementation of an
approved action, will be disapproved.

    f. Waivers will be based on specific circumstances and re-certified annually. Waivers
will be submitted as a last resort, but only after the action plans have been fully
implemented (6 quarters). Waivers may be submitted for remote/isolated operations where
no other services are available; temporary losses due to significant deployments; or
operations that support a revenue generator (i.e., club loses money, but supports the ARMP
program). Historical data and other services, both on and off the garrison, will be
determining factors in granting waivers. Waiver processes will include assessment of
mission essential requirement costs for the operation, and MACOM RMs will provide non-
BASOPS APF resources to cover that cost. Operations will still be required to submit plans,
be monitored by the regions and FMWRC. The IMCOM Deputy Commanding General will
approve an acceptable loss.

   g. All operations that are new or re-opening after construction will submit to the region
a Strategic Business and Action Plan, six weeks prior to opening, for approval. Regions will
monitor action plans on a monthly basis. These operations will be exempt from the
Category C Business Performance Improvement Program for 1 year to recoup losses
associated with opening a new business.

   h. The goal is forthright: Leaders and employees throughout IMCOM must be
committed to improving management of business operations, and only operate customer-

                    IMCOM Policy 44, Corporate Strategies · 31 March 2008
driven programs where the market is sufficient to support profitable operations. Troops will
be supported when services cannot be provided by any other means. Management
professionals at all levels must understand and embrace the goal of providing sound
stewardship of resources, and apply best business practices to meet NAF operations
financial performance objectives.



APPENDIX A
References

Section I
Required Publications

DoD Instruction 1015.10
Programs for Military Morale, Welfare, and Recreation

DoD Instruction 1015.15
Procedures for Establishment, Management, and Control of Nonappropriated Fund
Instrumentalities and Financial Management of Supporting Resources

AR 215-1
Military Morale, Welfare, and Recreation Programs and Nonappropriated Fund
Instrumentalities

AR 215-3
Nonappropriated Funds Personnel Policy


Section II
Related Publications

This section contains no entries


Section III
Prescribed Forms

This section contains no entries


Section IV
Referenced Forms

DA Form 2028
Recommended Changes to Publications and Blank Forms



APPENDIX B
Business Plan

APPENDIX C
Scorecards

                   IMCOM Policy 44, Corporate Strategies · 31 March 2008
APPENDIX D
Competitive Price Surveys


Glossary

Section I
Abbreviations

AR
Army Regulation

ARIMS
Army Records Information Management System

BPCS
Business Programs Corporate Strategy

BPSC
Business Programs Steering Committee

DA
Department of the Army

DoD
Department of Defense

EEO
Equal Employment Opportunity

FMWRC
Family, Morale, Welfare and Recreation Command

FWS
Federal Wage System

HQ
Headquarters

HRD
Human Resources Division

IMCOM
Installation Management Command

MIP
Management Incentive Plan

MWR
Morale, Welfare and Recreation



                  IMCOM Policy 44, Corporate Strategies · 31 March 2008
NAF
Nonappropriated Fund

NIBD
Net Income Before Depreciation

PIP
Performance Improvement Plan

RD
Region Director

Section II
Terms

This section contains no entries

Section III
Special Abbreviations and Terms

This section contains no entries




                   IMCOM Policy 44, Corporate Strategies · 31 March 2008

								
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