MRG Cooperative - Strategic Plan

The Mad River Glen Co-op’s Board of Trustees embarked on an in-depth Strategic Planning process in 2002. The goal was to identify the Co-op’s core values. The idea being that by having a strategic plan we will ensure that future Co-op trustees and management will have a consistent and clear “road map” to follow as we move forward. Annually, the Co-op Board reviews the contents of the plan. This Strategic Plan was re-assessed during the winter of 2007-2008 by a group of volunteer shareholders and mountain staff, lead by a Board member. Future updates to the Strategic Plan should be made in a similar inclusive fashion. The most recent updates were approved by the Board on November 8, 2008.

MRG Cooperative Mission Statement  

Our mission is to protect forever the classic Mad River Glen skiing experience by preserving low skier density, natural terrain and forests, varied trail character, and a friendly community atmosphere for the benefit of shareholders, area personnel and patrons.

MRG Vision Statement 

We respect and cherish our natural environment and the historical path that brought us to 2002. In 2027 Mad River Glen will still be the unique and classic skiing experience it is today, continuing to incorporate:

• Natural snow conditions
• Trails
• Glade skiing
• Natural contours
• Single chair
• Low skier density
• Emphasis on being a skiers’ mountain
• Non-commercial atmosphere
• Sense of community
• All trails leading to a single base area
• Flora and fauna stewardship and low impact, non-conflicting activities that facilitate appreciation of our mountain environment

We expect that selective refinements will occur in Mad River Glen’s service departments and ancillary facilities, such as:

• Tasteful, unobtrusive use of technology to maintain and improve efficiency and effectiveness
• Facility maintenance and upgrades that ensure safety and reliability
• Promoting excellence in all operational areas
• Making additions and upgrades to buildings that conform to the mountain’s classic architecture
  

We expect to support our Mad River Glen community by continuing to attract skiers who seek MRG’s classic skiing experience, particularly:

• Families seeking a rugged adventurous experience
• Aesthetic appreciators of nature and wilderness
• Loyal customers who value our community

We expect that the Mad River Glen Co-operative will continue to be governed by a participatory democracy characterized by:

• Continued shareholder participation
• A management team that will provide administrative management to the Co-op but not control or authority

We expect that the current philosophical and financial attributes of Mad River Glen will be maintained and improved over time. For example:

• Preserving o ur “skier sense of ownership”
• Maintaining financial viability and sustainability with low fixed costs and low capital expenditure
• Advocating strong equity financing vs. debt financing
• Striving to be an employer that attracts and retains employees
• Employees who are vital members of our MRG community
• Being socially and ecologically responsible
• Leaving the commercial world behind
• Cooperation with organizations that share similar beliefs and philosophy, e.g. Stark Mountain Foundation and the Green Mountain Club.

We will not:

• Compromise our classic skiing experience by increasing significantly our daily ticket sales
• Strive to increase our annual number of skier days beyond our 80,000+/- comfort zone
• Straighten, widen, blast or fill our trails
• Exclude potential for additional trails
• Provide groomed, homogenized expert terrain
• Neglect the quality of our “woods” skiing experience
• Add significant additional snowmaking
• Allow snowboarding
• Add significantly more uphill facilities and capacity
• Change our business model by adding fixed costs and significant capital expenditures
• Have a glistening, hyper-efficient “assembly line” personality
• Add more parking capacity
• Construct additional on-mountain facilities
• Add another base area

MRG Value Statements

What MRG is:

• Mad River Glen’s history
• The Single Chair
• MRG’s rustic and independent personality / look / feel
• An escape from hectic, commercial stresses and pressures
• “Ski it if you can…” bumper sticker and tag line

Our Mountain Terrain:

• The mountain’s uncrowded, untamed, natural winter wonderland
• Our trail character
• The off-trail experience

The Environment:

• Stewardship of water, soil, air, and forest resources
• Sustainable forest management

Our Community:

• Sharing the MRG skiing experience and community atmosphere with customers, families and friends

Our Employees:

• The safety, dignity, development and equitable treatment of MRG’s employees

Our Ownership:

• That we are a co-operative welcoming shareholder input and team work as well as individual responsibility
• The democratic process
• Self-determination as an important aspect of our independence
• Ownership of our land

Our Financial Philosophy:

• Financial independence and sustainability

MRG Product / Market Summary

MRG’s Primary Product is:

• Lift-served trail and glade skiing
• Natural snow
• Maintained mountain
• Terrain for all abilities

MRG’s Services are:

• Parking
• Day Care
• Ski Report
• Instruction
• Ski Patrol
• Promotional Events
• Naturalist Programs
• Shelter, Food & Beverage
• Equipment Rentals & Repair
• On-Mountain General Store

Supporting Our Products & Services are:

• Shareholder Membership Sales
• Special Events Rental / Catering

Mad River Glen’s Market is the skier who:

• Shares our values
• Enjoys the MRG experience
• Supports our vision of the future
• Understands MRG’s sacred space
• Believes skiing is a way of life, not just a sport
• Seeks community interaction that fosters returning generations
• Appreciates our minimalist intrusion on the wilderness environment
• Wants adventuresome skiing on challenging, narrow trails worked into a complex natural terrain

MRG Operating Assumptions

Markets / Customers

• Current ski experience we provide will always be wanted
• Today’s dedicated MRG skier will still be here
• Today’s Co-op families will still be part of the Co-op

Resources

• Insurance industry will cause our costs to increase
• Fuel and energy costs will increase
• Equipment technology will make people better skiers
• The Mad River Valley will retain its current character and minimal rate of growth
• Snowsports industry companies will continue to consolidate

Competitors

• Competitors will increase their offering of unconventional terrain (a la MRG)
• Participation in self-propelled winter sports will stagnate, or potentially decline as baby-boomers age.
• Snowmaking technology will advance
• Ski area closures and consolidations will continue
• Ski areas will increase their service amenities

Business System Influences

• Environmental consciousness will continue to rise
• Environmental restrictions will continue to become more stringent
• Global warming will impact us
• Availability of renewable energy resources will increase

MRG Issues

• We anticipate major restoration and maintenance expense associated with the base box and ski school/patrol buildings
• The status of the 20th Hole will continue to be monitored. Any MRG involvement will seek to preserve and protect this adjoining property.
• MRG’s skier days will stay at about the same volume or decrease
• We may need a new water source for snow making
• Chair lifts will be the way people get to the top
• MRG will still be a co-operatively-run ski area
• MRG will be considered to be an icon; therefore, we will have increased respect for our historical character
• Extensive weekend lift lines and overcrowding may begin to detract from the customer/shareholder experience

MRG Strategic Initiatives

Over the next few years the Co-op’s Board of Trustees and the management hope to:

• Develop a Mission Statement of Facilities Committee – establishes direction for MRG, operates in parallel with Strategic Planning, develops consensus of the architectural vision
• Develop a Facility Master Plan for building and maintaining MRG (includes critical business issues for Cricket Club, Patrol/Ski School , Aging Structures, Architectural integrity)
  Develop alternative sources for Capital Funds
• Mature our financial modeling and planning process
• Develop the plan for dealing with Adjacent Property (purchase, protect, etc)
• Evaluate MRG’s Community Development /Communications process
• Develop the Snowmaking Water Withdrawal Plan
• Maintain the Forest Management Plan
• Develop an Employee Job Satisfaction program / capability

Study/Monitor mountain capacity to preserve the quality of the customer experience (assess crowding of lift lines and facilities/services)

Modified December 15, 2005
Updated & Approved November 8, 2008