HO0405a_1v1.doc Copyright © 1994-2012 SPOCE Project Management Ltd MSP® is a registered trade mark of the Cabinet Office. The Swirl Logo™ is a trade mark of the Cabinet Office.

The Sportiva Scenario Over the last few years, Sportiva, a United Kingdom chain of Health and Leisure Centres, has enjoyed increasing profits, and the Board of Directors has been considering ways of re-investing money to expand and improve its business. Indeed, a project is already underway to refit all the changing rooms and shower facilities at every centre. At present, all twenty centres offer a fully equipped gymnasium, an indoor pool, sauna, and café or restaurant, as well as squash and badminton courts. Aerobics and other classes are arranged each week, as well as special monthly events. At each centre there is a Centre Manager and a deputy, and a core of permanently employed staff, most with First Aid and Lifeguard qualifications, working in shifts. A recent survey of potential members has revealed a demand for more family-friendly Leisure Centres in some areas. It seems likely that by offering a special family membership rate in these regions, and by making provision for children, new members could be attracted to Sportiva. Some existing members would use these centres more often too, particularly at weekends, if they could bring their children along. Thus as well as generating increased revenue from membership subscriptions, annual profits from the cafes and restaurants at these locations could increase by as much as 12%, and annual profits from their other chargeable activities and events by around 5%. The Managing Director of Sportiva, Paul Nash, has agreed in principle that £3M should be spent on a redevelopment programme to meet this demand, although he remains concerned that the anticipated business benefits might not be met if costs spiral upwards. Five of their biggest centres will be involved in this programme. These locations have been identified for two main reasons. First, they are situated in, or are adjacent to, areas where family homes are the predominant housing stock. Second, they are on large sites, with room for expansion, subject to the usual local planning permissions and compliance with building regulations and health and safety requirements. It is anticipated that this programme will take two years to complete, and will increase the membership base by up to 20%. Each centre will have a crèche where parents can leave children under five years of age in the care of a fully qualified nursery nurse for an hour or so at a time. There will also be baby change facilities at each centre, and the café or restaurant will offer high chairs and a special children’s menu. Each centre will have a supervised outdoor play area for older children. Activities available here will include ball parks, commando style climbing frames and skateboarding. Table tennis facilities and judo classes for all age groups will also be provided. At present, no specific track is kept of the different activities undertaken by members when they visit Sportiva, but as part of this programme, each member at the five centres will be given an electronic swipe card, encoded with their personal details. In future they will use these cards to gain access to the different facilities, including those used by children. The Financial Director, John Chang, particularly wants this innovation to improve cost/ benefit tracking at Sportiva. It will cost in the region of £6000 per centre, and installation at all centres can be completed within three months. The Director of Sport and Activities, Marian Hewson, is keen to see the programme implemented as she first proposed the idea, and has been instrumental in gaining support from the other Board members, including Anna Brown, HR Director, and Ian Timms, Director of Buildings and Maintenance. Ian Timms has been discussing the proposals with his deputy, Ahmed Mallick, who is a very experienced project manager. They recently attended an MSP course in programme management together with Marian Hewson, and Ahmed is keen to put his newly acquired skills into practise, although Ian still has some reservations. The equipment purchasing manager, who reports to Marian, is also keen to get involved in the programme.

HO0405a_1v1.doc Copyright © 1994-2012 SPOCE Project Management Ltd MSP® is a registered trade mark of the Cabinet Office. The Swirl Logo™ is a trade mark of the Cabinet Office.

The Centre Managers and staff at the five centres affected by the programme are generally in favour of the proposed changes, although some concern has been expressed that they may have to take on more work if not enough new staff are recruited, or if the new staff are not properly trained. One of the major shareholders in Sportiva, Eddie Stewart, the well known Formula 1 racing entrepreneur, has heard of the proposed programme from John Chang, and has expressed some reservations. He is concerned that Sportiva should not be seen as a ‘theme park’, and worried that older members may resign their membership if they hear rumours that Sportiva is about to be taken over by hordes of children. However, John Chang has sought to reassure him, and says that the improved business should generate an annual increase of at least 10% on share dividends. At present, there are four proposed projects for the family-friendly redevelopment programme: 1. The rebuilding project. This will undertake all the building work and reconstruction necessary at each of the five centres to provide the new facilities. This includes preparing architects plans and obtaining the relevant planning permissions. It is anticipated that an outdoor playground and two new indoor units will be required at each centre (to accommodate the crèche and the table tennis). Three centres are also likely to require increased kitchen and restaurant accommodation. No new accommodation will be required for judo but suitable judo mats need to be purchased. 2. The staffing project. John Chang is anxious not to employ too many new staff, at least initially. It is envisaged that at each centre up to three nursery nurses will be employed, and up to two play area supervisors. The latter will be supported by volunteers from the existing staff as necessary. All will need appropriate training in First Aid and Child Safety. One or two new kitchen/restaurant staff will also be required at each centre. Trainers in judo will be contracted in as required. This project will oversee the recruitment and training of staff, deal with Criminal Records Bureau and Child Protection issues, and set up all contractual arrangements. 3. The equipment project. This will identify, source and purchase all the necessary equipment to make the new facilities functional, bearing in mind Health and Safety requirements. Once the nursery staff are appointed, they will advise on suitable equipment for the crèches. 4. The swipe card project. The work of this is to be outsourced, but it is intended that the project will be managed by Sportiva. These projects will be run under the PRINCE2

® (* see note below) methodology using Sportiva

staff. It will not be possible to keep the crèche open, or to arrange supervision in the playground area, at all times, so appropriate opening times need to be decided. Arrangements need to be made so that staff in the crèche or playground can contact parents or other staff if there is an accident or children become ill or distressed. Advertising literature detailing the new facilities will also need to be prepared and distributed in the vicinity of the newly developed Leisure Centres. It is hoped that news of this programme will generate greater public interest in Sportiva and what it has to offer.

End Of Sportiva Scenario. Note (*) – PRINCE2® is a registered trade mark of the Cabinet Office. It is a UK designed structured method for effective project management.