Les Mills New Zealand (Les Mills) is a New Zealand owned fitness chain whose purpose is to improve the lives of New Zealanders. Their goal is to have the world’s best fitness clubs offering the best experiences and results.
Les Mills currently runs twelve clubs throughout New Zealand. Their gyms offer individual and group exercise programmes as well as leasing space on their sites to supporting businesses, including nutrition stores, fitness merchandise, and beauty clinics. Income also comes from licensing non-Les Mills gyms to offer their group fitness programmes.
In 1968, Les and Colleen Mills, both former athletes who represented New Zealand at Olympic and Commonwealth Games, opened a gym in Auckland. Their son Phillip, also a New Zealand representative, discovered American-style aerobics while studying in the USA in 1980 and brought this back to New Zealand. It was a huge success. In 1984 the company was listed on the New Zealand Stock Exchange but was bought back by the family from public ownership in 1990.
Through innovation, the company developed a number of group fitness programmes that revolutionised the company as one of the best in the world for group fitness classes. This led to a new company in 1997, Les Mills International, that was set up to establish a global network distributing to clubs, which currently teach millions of gym-goers the Les Mills programmes in 13,000 gyms across 80 countries.
This case study deals with the management of Les Mills New Zealand gyms, as opposed to the international distribution company.
The world's fastest way to get in shape. There's a reason why Les Mills BODYPUMP® is the most popular Group Fitness programme in the world. It's a revolutionary weight training workout that strengthens, tones and defines every muscle in your body.
This full-on cardio workout takes no prisoners. It'll push you all the way to your limits and further, with strong, simple moves and pumping music. Les Mills BODYATTACK® is the most intense athletic workout you'll find in the world of fitness.
Gain flexibility and strength in a class that combines the best of Yoga, Tai Chi and Pilates. Truly a fitness class for the 21st Century, Les Mills BODYBALANCE® takes a holistic approach to fitness to bring mind and body into perfect harmony.
Break a sweat with Les Mills BODYJAM®, an addictive fusion of dance and aerobic moves. Mixing the latest hip-hop, funk and Latin sounds with the hottest music currently topping the charts, you'll get way more than a workout. You'll have awesome fun.
Using an adjustable height step, Les Mills BODYSTEP® gives your body a high-energy cardio blast. With over 2,000 steps to take in every session, you'll tone your hips and thighs in record time. One of the world's most effective fitness classes.
Les Mills RPM® combines cycling, choreography and motivational coaching techniques into one low-impact, aerobic and adrenaline-filled ride suitable for all fitness levels. Get in the zone and see why Les Mills RPM® is so addictive.
Get invigorated with this awesome workout that incorporates VIVE™ balls and bands with functional exercises. You'll love the great music, and our skilled instructors will keep you inspired throughout the entire Les Mills BODYVIVE® class.
Combining the fighting disciplines of Karate, Boxing and Tai Chi, Les Mills BODYCOMBAT® is a non-contact but fiercely energetic session that redefines the high-impact workout. Fight your way to new levels of fitness with one intensely fun class.
Les Mills centralises many of its functions in Auckland in order to better manage and coordinate innovation, sales, facilities, fitness programmes, finance, and marketing. This ensures procedures are standardised across the business. Club department managers report directly to their Club Manager and indirectly to the relevant National Department Manager.
Clubs pay a levy that helps pay for the infrastructure provided by the national support office. Club operations are split into ten key areas.
Club manager
Aim: To maximise every opportunity in achieving improvement in the two primary Key Performance Indicators – membership numbers and club operating profit.
Skills required: decisive judgment; functional knowledge, skills and abilities; deliver results; continuous improvement; resilience; motivating others; relationship building; interpersonal communication; integrity; business acumen; influencing and persuading; vision/innovation.
Sales manager
Aim: To manage and develop the world’s leading membership acquisition and retention programme.
Skills required: strong interpersonal and communication skills; strong sales ability; a genuine interest in people and in providing a service; passion for the Les Mills product; confident; strong analytical, problem solving and decision-making skills; systems thinking; computer literate; professional and well groomed in appearance; passion for fitness; managerial experience, preferably regional/territory; sales experience, preferably business to consumer; credible in sales management not necessarily personal sales; solid interpersonal and communication skills.
Group fitness manager
Aim: To improve the lives of New Zealanders by providing world class group fitness classes to members and guests that exceed their expectations.
Skills required: strong interpersonal and communication skills; a genuine interest in people and in providing a service; passion for the Les Mills product; problem solving and decision making skills; strong background as a Les Mills Group Fitness Instructor; computer literate; ability to motivate, inspire and lead.
Personal training manager
Aim: To improve the lives of New Zealanders by providing world class personal training and gym floor services to members and guests that exceed their expectations.
Skills required: strong interpersonal and communication skills; a genuine interest in people and in providing a service; passion for the Les Mills product; problem solving and decision making skills; strong background as a BodyTrainer™ Personal Trainer; business acumen; computer literate; ability to motivate, inspire and lead.
The organisational culture of Les Mills is outlined in their Little Yellow Book,which is given to all employees at their induction. This book focuses on:
The organisational culture of Les Mills very clearly emphasises that the employees make the difference and this starts from the top down.
The following is a geo-demographic profile of active members who joined between July 2005 and May 2009, compiled using the MOSAIC profiling tool. A Mosaic type is allocated to each of New Zealand’s 1.4 million residential households based on a wide range of statistical sources including Quotable Value NZ, Roy Morgan Single Source Surveys, and the latest New Zealand Census Information for all 41,362 census meshblocks.
The people who join Les Mills are primarily 18–35 year-olds who want to be part of a dynamic fitness environment. They tend to live and/or work in an urban setting within a 10 minute drive of a Les Mills club, and in attitude they are more confident and self-oriented than those who reject the idea of joining a gym.
The strongest MOSAIC groups for Les Mills joiners are Urban Intelligence, Symbols of Success and Singles and Starters. These are stylish professionals– very ambitious, driven by success and well educated. Most earn above average household incomes. At the top end, they are degree-qualified white-collar professionals who work long hours in occupations that provide them with a median household income of over $83,000 per annum, the highest of all Mosaic groups. The younger end (Singles and Starters) are students and professionals living in inner suburban flats or close to tertiary campuses in large urban centres. In their case, income and student loans may limit activities for some but credit allows them to buy things that they want.
Les Mills joiners tend to be more extroverted and sociable - often letting their hair down at bars and clubs. They are brand conscious. Cars, clothes and accessories are seen as extensions of self and they express themselves through these.
Their weekends are normally full of activities, brunch with friends, going to beaches and shopping. Friends, family and workmates all play a large role in their life, and they give great weight to what their personal inner circle says. They are likely to support longer term charity projects as opposed to appeals, but have a genuine concern for the environment and try to recycle everything they can.
These people are technologically savvy early adopters. They almost always have a computer at home and are heavy Internet users, using it for music downloads, online shopping and entertainment. They prefer to do all their banking online without having to visit a branch. They may enjoy cultural pursuits, and appreciate art and fine food, but are just as comfortable with takeaways and a movie. Holidays are often taken overseas, however they do enjoy weekend breaks within New Zealand. Being more socially aware and conscious of current environmental and ethical issues, Singles and Starters see holidays as a chance to experience another culture rather than just for relaxation.
Les Mills joiners need to keep abreast of current affairs and the latest trends, so they are heavy consumers of newspapers and magazines. They’re media and marketing savvy – but do their best to avoid hype – and want to make their own, smart choices.
Physically, it’s no surprise that they’re active. Health, fitness and wellbeing are integral to their lives and they enjoy snow skiing and other winter sports, as well as working out at the gym. They like to participate in team sports just as much as watching. Part of this is driven by a desire to belong; whether to a sports team, peer group or professional association.
Through an "open to all" policy, and marketing campaigns, the company has led the fitness industry for over forty years. The company also introduced a personal training programme where trainers contract to a Les Mills club, and pay rent to do so, as well as managing their own clients.
The latest initiative is a Team Training category aimed at building stronger connections between members through programmes such as Les Mills BOOTCAMP®, Les Mills LOOK BETTER NAKED®, and Les Mills SPARTAN®.
Employees undertake a performance review every year. This is self-completed online and then completed by a manager, which is followed by a meeting. The aim is to set objectives and engage in formalised and constructive feedback. It is not linked to a salary review.
Key Performance Indicators (KPIs) contribute to each employee’s individual performance review. They inform employees about the business outcomes and give meaning to their performance. They ensure employees have drives to help achieve their objectives and help standardise measuring and reporting on performance.
Every staff member has the equivalent of three percent of their salary reinvested into them through training. An annual Individual Development Plan is drawn up by the employee and their manager; it includes both internal and external training.
The staff development programme is both functional and managerial. Using the Les Mills Group Fitness management system, all group fitness instructors go through intense training at every level. Those who make it to the position of head teacher, presenter, or national trainer have training that is second to none in the world. Staff undertake extremely thorough sales training as Membership Consultants (sales people); our Team Training Instructors undergo advance training to be certified to teach programmes such as Les Mills LOOK BETTER NAKED® and Les Mills BOOTCAMP®; and the Personal Training programme is a journey from Gym Instructor through to Personal Training Apprentice to full Personal Trainer.
Les Mills is in the process of finalising a leadership development programme that will help grow leaders from all levels and areas of the organisation into their full potential – and give them the tools, resources, and support they need to live the company’s values every day.
Les Mills uses a Sales Balanced Scorecard to generate sales success. It’s a reporting tool that identifies the main sales KPIs, allowing business managers to make timely and informed decisions, performance comparisons, and benchmarking to be made easily at a group, club, and individual level. This is encouraged through "relationship selling" – an idea that consultants are remunerated not only for sales but also for the success of a member’s induction, which is measured by their attendance during their first twelve weeks as a member. Feedback is also provided by online independent member and staff satisfaction surveys.
Each club also focuses on creating member events as part of a "club within a club" philosophy. These are to build deeper, stronger bonds between members and the club, and members and members. They are non-profit and range from training for specific events such as half marathons, to healthy cooking classes, to motivational speakers.
"Inform our people" is one of the company’s five key strategies, and regular staff meetings, conference calls, intranet work spaces, online collaboration, e-newsletters, and training sessions are held at clubs across the country. Clubs also have annual internal award nights to recognise and reward those who have excelled in the field over the past year.
Les Mills is serious about its Treaty of Waitangi obligations. Māori culture is a huge part of the success of the Group Fitness product. Les Mills has its own Group Fitness Haka that is used internationally, created by Steven Renata and Paora Sharples (Minister Peter Sharples’ son).
The song "Kotahitanga", performed by its composer Hinewehi Mohi, features in nearly every international Group Fitness presentation. It is the Kaha, or strength of their people, that the New Zealand Les Mills team are proud of.
Tu Mai Nei Nga Toa E© (Les Mills Haka)
Kaitataki: Kia wiri
Hope
Ki raro
A kia mau Hi
Kia whakata hoki au i ahau
Hi Aue Hi
E nga matua tipuna
tukua mai te kaha
te rangatiratanga e
Kapa: Tu mai nei nga toa e
Haka ana ki te noho mangere
Ko te whakaara ko te momona
Me pakanga, parekura e
Kia pakari hinengaro, tinana, wairua.
Ko te ha o tane e
Kaitataki: I te wehenga ka puta hihiri e
Kapa: Na reira, me puta to ihi e
Kia tu te wana
Kia tu te wero aue
Kia tu kotahi tatou
Ana, Ana, Ana,
Tenei whakatau. Hi.
Les Mills Haka (trans)
Leader: Let your hands quiver by your side
Hands on hips,
Hands down by your side (still)
Be steadfast
Let me be at one with the earth
Hi aue hi
Ancient ancestors/warriors of old
bestow upon us strength and leadership
Group: Standing here are the new warriors
We haka in fury at sedentary lifestyles
Obesity is our adversary
Let us do battle
Let your mind, body and spiritual essence be revitalised
Through the breath of life
Leader: At the separation of earth from sky, all potential was released into this world
Group: Therefore, let your true potential be known
Reveal your inner strength & power
Hold fast to the challenge
Let us unite as one global entity
Yes it is , Yes it is, Yes it is
This we decree.
Les Mills is aware of both the functional and social aspects of working out at a gym.
They try to enhance the experience through their facilities that are attractive and practical. Through upgraded facilities, as well as an increase in membership, driven by sales strategies and increased retention, Les Mills has seen substantial growth over the past seven years.
The Māori concept of ako, where the teacher learns from the student and practice is informed by evidence, can be applied to this business as the company is consistently trying to offer more accessible services for their customers. However, they are facing increased competition from international competitors entering the New Zealand marketplace. Les Mills wants to expand to 75,000 members by 2014. To do this they need to increase the quality of the services they offer and expand further by opening more clubs, particularly in the Auckland region.
Growing a business requires continuous effort from many people at various times. Having a common over-riding purpose, that genuinely sits at the heart of the business and those who choose to work in it, is vital. Pushing the boundaries means the company may make mistakes but they learn from them.
Les Mills believes it is to protect their culture by staying true to their cause no matter how fast the company grows. Fast growth that is at the expense of culture is a win:lose situation, while measured growth with a determination to nurture culture is a sustainable win:win outcome.
Although you can earn a good income in the fitness industry, it can’t be the key motivator. First and foremost, you must have a genuine love of fitness and a real desire to transform the lives of others. You also need to be qualified. The fitness industry is maturing and now employs people with commerce degrees, law degrees, marketing degrees, and many more. So whether it be successful secondary school results or a tertiary qualification, education will open up far greater opportunities in the industry for you.
Finally, to be a real success in the fitness industry, you need to walk the talk and encourage others to get fit with you.
Published on: 09 Apr 2015
