KIAH Health Pty Ltd has been commissioned by Clients who run two gymnasiums with a view to exploring merging both into a single business cost centre in one location while still addressing the significant needs of each of their member base. Each gymnasium is owned and operated by individual CEO’s with their own teams whose members are from significantly differing market segments.

The purpose of our Client brief was to;

  • Research and present the implications of merging both entities into a single business unit;
  • Research the benefits of “economies of scale” in a sensitive and over supplied economic climate located in a large regional city;
  • Present a Cost Benefit Analysis;
  • Present a Marketing Plan, and
  • Provide on going business and project management support.

We identified significant challenges as exampled by a gym members preferred choice of personal trainer (all showing a strong emotional attachment); preferred training methodologies; cross marketing techniques; cost sharing and providing members with a venue which was conducive to their needs for privacy while being conveniently located were all identified and addressed as critical mass. A delivery time line (with cost estimates) was presented on time and on budget.

Our S.W.O.T Analysis showed a need to identify an obvious and a  pressing question:

What industry were the gyms actually in? The team arrived at “Sports industry.”

This finding led to some lively debate with all of key stakeholders including team members; financiers and Landlords with all being interviewed.

Succinct and lucid seminars (60 minutes in length) targeting team building; customer service; leadership and change management were conducted. All other local industry competitors were identified together with the services they offer.

Each team member was asked to present five points outlining the strengths of such a merger and five that they saw as disadvantages. All were interviewed privately in relation to their submissions.

Current and non current members were also interviewed (informally) about their experiences, expectations and suggestions for improvement from both gyms. Non current members were also interviewed about the reasons they hadn’t returned and how we could attract them back.

On presenting our research findings, we indicated that both Clients should consider themselves as clinicians in the allied health care industry. The personal trainers alter a clients behaviour, counsel and improve a clients health just as if they had provided medications. They will often have doctors refer patients with serious physical and mental health issues such as hypertension; diabetes; musculo-skeletal injury; over weight and significant self image issues for on going treatment and support.

All clients are discretely interviewed where the trainers run a basic test that includes measuring weight; abdominal girth and body fat percentages. All Clients are asked for their personal fitness goals. All have a timeline for re-assessment and re-evaluation while feedback is sent to their health care professionals if required and with the clients permission.

Our S.W.O.T Analysis showed that both gymnasiums team members were industry compliant, but needed renewing of their CPR, first aid and AED qualifications. We also advised that they needed a Blue Card (as clients children were on premises); a course in manual handling (weights) and attaining their Certificate IV in TAE LLN as they were instructors passing on knowledge with outcomes in a formal business setting.

First Aid Safety Training will be re-skilling the team in all their first aid skills, Manual Handling and will be supplying WorkCover approved first aid kits and AED’s. KIAH Health Pty Ltd will be assisting with implementing of their approved macro and micro business plans.

Both gyms are successfully merged and are going through the usual change management issues. The maintenance of open communication links is integral to our change management success.

Their gym membership base is steadily increasing as is the collaborative team spirit and a collective sense of sharing common goals.

The case in question highlighted the benefits of hiring an organisation with significant industry and business acumen and one which is able to use its training arm to allow Clients to make informed business decisions.

(C) KIAH Health Pty Ltd Medical Publishing 2016.

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