If Curiosity Killed the Cat, Who Killed Business?

Don't know if any of you watch 'Three in a Bed', a documentary series in which three bed and breakfast owning couples visit each other's establishments and pay what they believe the experience is worth.


At the end of the programme, one couple wins based on how much they get paid in relation to the price they normally charge.

Anyway, the other day there was one couple who did nothing but criticise and look down their noses at everything that was offered them.



On more than one occasion the husband was heard to declare, “I've been in this business for 45 years, and blah, blah, blah.” You'll be delighted to hear that they came last, the other two couples having decided to pay them only 73% of their bill. Ouch!

And as I listened to him, an old phrase came back to me that I haven't thought about for a long time.

“So is that 45 years experience, or one year's experience, repeated 45 times?”

Whenever we think we know our business that well.

Whenever we begin to think there's nothing more to learn.

Whenever we believe that our experience of our business is more important than our customer's.

That's the time to shut up shop and retire to somewhere where we can do no more harm.

One of the industry’s favourite presenters, Tim Fearon has over twenty years of working in results-driven corporate environments. He will be presenting at the FIA Conference on July 14th in Cheltenham.

Tim Fearon, Owner of the Extraordinary Coaching Company

Learning From the World Cup

Given the fact that management gurus always turn to sports and the army for lessons on management skills and maximising team performances, I wondered what lessons we could teach ourselves ...and save £000s on consultancy fees.

We have our own world cup to work towards – being more than a bit player in the delivery of healthcare strategies.

Like England, we have qualified with flying colours – just think of the use of the FIA logo on the Let’s Dance with Change4Life posters and ads.



Like England, we are rich in talent, creativity and commitment.... who is our Joe Cole? Wait for the announcement of the winner of the Future of FLAME Awards!

Like England we have a good management team in place: the TwentyTen Commission highlights the fact that they have a clear strategy about where they want to take Team Health & Fitness.

So how can we prevent the confidence and performance collapse which always seems to haunt our country teams?

Is it a management issue? Is it a skills issue? Is it a recruitment issue - i.e. we do not attract and keep the best talent? Is it a selection issue - i.e. reward, recognition and promotion? Or is it a bit of all?

I have no answers, only questions. If I did have the answers, I would probably be called Davio Stalkero and be paid £6m a year..... Mind you, some might argue that our Fabio doesn’t have all the answers either.

So let me close with two simple questions:

• How can we ensure that we do not squander the great opportunity we have earned to play in the final rounds of our own world cup?

• Will our boys in white lift that trophy on July 11th?

Answers on a postcard please

David Stalker, Executive Director at the FIA

The W[H]ealth of the Nation

You can almost hear the drum-roll around Whitehall as the Chancellor of the Exchequer sharpens his axe for another round of cuts and bloodletting next week. The emergency budget is due to be released at 12:30 on 22 June. It’s likely to be pretty brutal.

Popular initiatives in the sector such as Free Swimming have already been cut while others are under real threat. To put it into context, the £40million saved on Free Swimming is less than 0.0004% of annual spending on healthcare. Whilst Change4Life is likely to scrape through and live another day, many other perfectly worthy projects are going to go to the wall.

We have already seen accusations in the press that physical activity promotion roles are “non-jobs” and in the first line of cuts. We have also began to see the spending of the Department of Health come into question; when other departments are seeing between 15-30% cuts, is it right that health escapes the firing line? Simon Heffer, hardly a Cameroon but a recognised big beast of conservative thought argued as much in the Daily Mail.

Real leadership is needed around public health and physical activity policy. When we are cutting the amount spent on troops on the front line, you can be sure that segments of the media are going to have a field day on a campaign to get the nation walking. Someone is going to have to be ready with the response to this criticism and stand up to the criticism.

All the indications are that the new Secretary of State Andrew Lansley is the man for the job.

Convinced of the importance of public health, Lansley is not an easy man to shake off his strategy, as was seen by his guarantee from Mr Cameron of the position of Secretary of State.

Fundamentally, he has a very strong case. Without addressing the health of the nation, you can never enhance its wealth. We spend over £100billion per year on healthcare. This is double the 1997 level. Yet demand on healthcare continues to rise. This can not continue. It might not be this Parliament but probably the next which is presented with a choice as to whether a health service remains free at the point of use.

Public health and physical activity in particular, is critical to containing demand on healthcare. Whether it is the aging, fattening or sickening society, physical activity can have an impact and savings can be made.

Currently, physical inactivity including direct costs of treatment for the major lifestyle-related diseases, and the indirect costs caused through sickness absence – has been estimated at £8.2 billion a year.

Furthermore, the direct cost of workplace absenteeism due to preventable illness is estimated at £13.2bn whilst combined with the direct cost, the UK lost £19.9bn to preventable absence in 2007.

Take a few examples. Stroke is the third largest cause of death in the United Kingdom. Over 130,000 strokes occur every year. There are 300,000 people living with a disability as a result of stroke in the UK. The overall cost of Stroke to the economy, including direct & indirect care costs and loss of productivity, is £7 billion a year. Preventing just 2% of strokes that occurred in England could save £37 million within a year. Even just moderate physical activity can reduce the risk of stroke by up to 27%.

There are currently over 2.6 million people with Diabetes in the UK with a further 500,000 cases undiagnosed. Diabetes UK estimates the cost of Diabetes to the NHS at £9 billion a year. The Department of Health, ‘Be Active Be Healthy’ physical activity strategy states that physically active individuals who meet the Chief Medical Officer Guidelines have a 33% reduced risk of developing Diabetes. Therefore, moderate physical activity represents a possible £2.33 billion saving for the NHS.

3.4 million adults in the UK suffer from Coronary Heart Disease. This costs the UK healthcare system around £3.2 billion a year and the overall economy nearly £9 billion a year. According to guidance by the National Institute for Clinical Excellence 35% of CHD is caused by physical inactivity. Moderate levels of physical activity could save £1.5 billion a year.

These are serious numbers and even the Treasury will recognise their significance. Whether it is containing demand on healthcare, helping people to be more productive in work or simply helping people back into work, physical activity has a major role to play.

If we want a wealthy nation, we better make sure it’s healthy first.

Steven Ward, Director of Public Affairs at the FIA

TIME TO RE-IMAGINE THE INDUSTRY?

A recent white paper entitled The Future of Fitness written by Nielsen/Synergia and sponsored by Les Mills, explores some key demographics and trends that may shape the industry going forward.


This report is a fantastic read for those of us who think that the future of the industry is limited only by its ability to re-imagine itself (as the leadership guru Tom Peters would say).

Here are a few interesting thoughts:

The Future of Fitness authors put it like this: “It is no exaggeration to say that many consumers will expect all their experiences, including fitness, to deliver ‘what I want, when I want it, and where I want it – oh, and I may want it differently tomorrow’.”

Les Mills CEO Philip Mills concurs, adding that tomorrow’s consumer will want fitness shaped around them, and they will therefore ask our industry to become much more customer-centric.

I think he is right, except they won’t be asking, they’ll be telling.

In a society that is increasingly shaping itself around individual preferences, it would be incredibly naïve to think that the commoditised gym-based model that dominates the current fitness landscape will be anywhere near robust or flexible enough to meet consumers’ needs in a few years time.

With this in mind many of speakers at the FIA Conference – including Phil Dourado, Tim Fearon, Derek Barton, Paul Bedford, Pete Cohen, Simon Walker and Ilona Boniwell – will (at one level or another) be challenging the industry to think differently about the way it presents itself.

In fact the whole event is designed to make delegates question what they are doing and why.

If, as the report suggests, we can’t even take for granted that solving the growing health problems of ageing, obesity, heart disease and diabetes will provide a robust future for the industry then where do we go from here?

Well, the report says there are a number of groups that should appear on the fitness radar in the coming years, if they aren’t there already.

These include those who simply don’t like exercise (dubbed the “Activity is not for me” group). Nice as it is to think that we could change the mindset of the average couch potato, we have failed miserably so far and I see no reason for this unhappy state of affairs to change any time soon.

Then there is the “Activity for Fitness’ Sake” group. Actually we already have these people in our facilities but the report says that holding on to them will not be easy. We are going to have to think creatively about how we package and deliver the fitness product just to keep the members we already have - but it can be done.

The “Play Drives Activity” group is interesting in that these people will demand something from us that is a lot more exciting than the current fitness experience. According to the report, this will happen as a result of a fusion between games, sports and dance that will create activities that are driven by “fun, pleasure and sociability – not by effort and hard work.”

The “Activity Offers Something More” audience consists of people who want to live out their values and are seeking a better quality of life physically, mentally and spiritually. In order to reach this potentially huge group, advanced operators (or maybe new operators) will need to take a much more holistic view of the fitness proposition by expanding their offering into areas as diverse as brain training to life skills, which can be offered at the club or online.

We live in interesting times.

See you at the FIA Conference is being held on Wednesday July 14th at Cheltenham Racecourse.


Tim Webster

Consultant at Fitness Professionals

New Government – New opportunities

According to the Times, the health and fitness industry enjoyed its 10th consecutive year of growth and we are now a £3.8bn industry with over 7.4m members (data sourced from the State of the Industry Report, compiled by the Leisure Database Company on our behalf).


That is one hell of a record, given the last 12-18 months. What highlights the significance of this achievement is the other news surrounding us in the Times’ leisure sector roundup. It included the collapse of Buddha-Bar, London hotels attacking the Mayor on a tax issue which will impact their business and the continued growth of Paddy Power. The good news is that gambling and our industry are OK, but the bad news is that the rest of the leisure sector is in deep pain.

In the same week we (i.e. the FIA) have also had very fruitful meetings with the Department of Health and key players in the food and drink industry.

So what does all this mean? Perhaps we can allow ourselves a small cheer of optimism – despite it being probably the most challenging trading conditions in recent memory.

Much has been said about the need to attract the right talent into the industry and up skill the operators who have produced the enviable record of 10 years of consecutive growth – actually, some believe that it is more like 29 years of consecutive growth, but we don’t have the data to back this up – so, despite the urgings of the PRs in our midst, we cannot make that claim.

But, with a new administration in Downing Street, our thoughts automatically turn to the future; to the next 10 years. The question is not ‘will we sustain that growth record’, but HOW will we sustain that growth record?

What does our industry have to offer UK plc and its new management team? Health is obviously key. The TwentyTen Commission points us to skills and new programmes (especially programmes which deliver our ‘Exercise as Medicine’ ambitions). To break through our 12-15% glass ceiling, we will obviously have to engage more effectively with our local communities. But how? Who? Where ie beyond the gym)?

These are the questions which keep me awake at night – these and who will win the World Cup; will Dillon ever learn to heel; will I ever recover from my jaunt up the seven mountains of the world in aid of Help for Heroes.

These are exciting times for our industry. These are challenging times for our industry. But would you want to be anywhere else?

David Stalker, Executive Director at the FIA

FIA Annual Golf Day

Competition = rivalry for supremacy. A definition that is brought to life by the FIA’s Annual Golf Day, teams will compete in a desperate struggle of stamina, strength and pure skill, scrabbling through treacherous forestry and swampland, all to win the most coveted of titles… Best Dressed Golfer.

No really, quite on the contrary, whilst the golf day does appeal to the competitive nature of our industry’s finest, it additionally provides a great opportunity to spend the day with some people that you perhaps don’t know so well but maybe should! The emphasis will be on fun, relaxation, socialising and golf of course.

However, if you’re anything like me then the alternative to 18 holes of greenery, lakes, sand and funny metal sticks may appeal -

We will be offering the chance to dip your toe into the world of golf with a focused golf pro clinic. There will be a maximum of 12 participants per clinic, ensuring you will receive adequate personalised attention to make you the next Tiger! You’ll then stop for lunch before popping around the corner for an indulgent facial, back, neck and shoulder massage before spending the rest of the day in the spa (I feel relaxed just thinking about it).

The Golf Day this year takes place at the Lilley Brook Golf Course in Cheltenham, designed by Dr Alistair Mackenzie (designer of the Augusta course). Lilley Brook describe their course as being “an aesthetic and strategic mix of pleasures for both the eye and the mind”, featuring some beautiful wildlife; red maples, Indian bean trees, walnuts and oaks. Here’s a little tip for success…

On the 12th hole (a 397-yard par 4 that sweeps uphill to the green), keep your tee shot to the left of the fairway to have the best angle into a green which slopes wickedly from back to front!

There is still time to get down the driving range and perfect your swing for this beastly competition – there’s no excuse for coming last… And if you do happen to lose, our after dinner speaker Bob “The Cat” Bevan will be quick to point it out!

The Awards Dinner in the evening will recognise and showcase the high achievers of the day – surely motivation enough to start practising?

I look forward to seeing the best of the industry fighting it out in their Burberry and Callaway on the 13th July! To book your place now click here.

Hayley Bevan
Events and Sponsorship Manager
Fitness Industry Association

NEW EHFA BOARD

Once again elections are on my mind.


No not the gladiatorial spectacle on TV – fascinating as it is – but something far more humble.

I was recently elected onto the EHFA Board and I started to think about what my manifesto promises would look like as a ‘deliverable’. I am realistic enough to know that my presence on the board is a reflection of my position at the FIA and not a testimony to any political machinations. Therefore, what are my goals.

As a representative of the UK health and fitness industry I think they are twofold:

- How can we, as a UK industry, benefit from a European health strategy, in much the same way as we have from the UK one

- Think MoreActive4Life, Let’s Dance...., Know your Limits, Fit 4The Future, etc

- How can our European peers benefit from our learnings in the UK.

The reality is that the health agenda is as important to Europeans as it is to us and European politicians are as desperate to find a pathway to a healthier Europe as ours’ are. Therein lies our opportunity.

We have much to share and much to learn – which is why I am quite enthusiastic at the thought of my quarterly jaunts into a market which is not only bigger, but far more complex than anything I can even envisage. But think of the upside. Imagine what impact a European Change4Life could have on the value and reputation of our industry – in this country and across Europe.

Imagine the impact on a healthcare sector which still contains luddites who either don’t or rarely acknowledge/appreciate the value of exercise in the ‘healthcare-mix’.

We know that we have a huge role to play in both (health) prevention and remedial strategies... my challenge is to be part of the Executive to take that message to politicians who are committed to developing long term strategies and healthcare professionals who need convincing.

Small ambition then!!

Finally, speaking of remedial issues, a quiet and unashamed plug for a hair brained initiative I’m involved in - Help For Heroes, the charity set up to help returning servicemen and women wounded in Afghanistan and Iraq, need your support (read ‘money’). A team of six misled and over ambitious people plan to ‘climb the equivalent of seven of the highest peaks on the seven continents’ in just 24-hours.

This attempt to climb 6,250 feet an hour.... on a VERSA CLIMBER might be ill conceived for a man in his forties, but it is for a very good cause. So please do support us to sign up or find out more just visit http://www.justgiving.com/davestalker.

David Stalker
Executive Director
Fitness Industry Association