BoardRoom magazine May/June 2015

Leaders in F&B Innovation

Innovation is a key component of leadership.

These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together.

The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.

MICHAEL S. WHEELER, CCE, CCM COO and General Manager

Cherokee Town & Country Club - Atlanta, GA

MATT MCKINNEY, CCM COO and General Manager Capital City Club - Atlanta, GA

JAY DIPIETRO, CCM President and General Manager

Boca West Country Club - Boca Raton, FL

ROBERT E. JONES, CCM, CCE COO and General Manager Desert Mountain Club - Scottsdale, AZ

RONALD A. BANASZAK, CCM, CCE COO and General Manager St. Francis Yacht Club - San Francisco, CA

PHIL KIESTER, CCM General Manager

The Country Club of Virginia - Richmond, VA

NICK SIDORAKIS, CCM COO and General Manager Southern Hills Country Club - Tulsa, OK

ALAN K. DUTTON, CCM General Manager The Yale Club of New York City - New York, NY

Another Potpourri

Although there’s still some focus on “Going Green”, this issue also features a number of other interesting contributions about private club ‘sustainability.’

“What Makes a Successful Private Club Chief Executive? The 12 Secrets to Success …” comes to us from Mike Leemhuis, formerly head honcho at Congressional and now Ocean Reef Club’s CEO in Key Largo, FL.

Leemhuis is of the opinion that ‘successful private club executives are not born’, and there are some very specific concepts that you’ll need to internalize and follow if you want success in the private club industry. Part of it all, he suggests, is because of the ‘nature of the beast’, in what Leemhuis sees as the most difficult of all the hospitality industries.

“Success,” he says, “is not the same for everyone…it’s measured differently, depending on whom you ask and who is evaluating.

And how do you define success? Have a read and engage yourself in some comparative thinking about the Leemhuis philosophy…it’s an interesting read.

■ ■ ■

Private club success – both for board members and the club’s paid management – also derives from how well these two groups mesh when considering the club’s planning, daily operations and the breadth and depth of the club’s member experience. Is there collaborative governance and how successful is it?

John Fornaro’s Publisher Perspective comes back to the bottom line that educating and training board members has to remain a priority and the fact that Educating Board Members Makes A Difference, and the fact that’s a process available today through BoardRoom Institute. As an adjunct to this requirement, a Gregg Patterson sidebar explains just how continuing board education happens at the Beach Club of Santa Monica.

These stories certainly offer food for thought…along with case studies, what clubs are doing to increase their wellness factor for employees as well as members; business ethics, and the hot button topic – water!

■ ■ ■

Top Presidents: Our features on BoardRoom’s top presidents for 2014 also continue. Included are four presidents – Darrell Elfeldt and Judge Darcy Goodman, Presidents, Desert Highlands Association, North Scottsdale, AZ and President Doug Mair, The Glencoe Club, Calgary, Alberta, Canada and President Joanne Hruska, The Glencoe Golf and Country Club, Calgary, Alberta, Canada. This is the first time in the history of BoardRoom’s selection of top board presidents that two from the same (or sister) clubs have received this recognition. BR Got a comment?

Drop us a note: dave@boardroommag.com

DAVE WHITE

Publisher/CEO

John G. Fornaro

Editor/Co-Publisher

Dave White

Associate Editor/Creative Director/Co-Publisher

Heather Arias de Cordoba

APCD Executive Director

Bill Thomas

Editorial & Marketing Director

Dee Kaplan

Account Manager

Dina Alleluia-Carr

Website and Subscriptions

Joshua Nuzzi

Contact Information

www.BoardRoomMagazine.com | www.apcd.com (949) 376-8889 or (949) 365-6966

Subscriptions

www.BoardRoomMagazine.com (949) 376-8889

Featured Columnists

Rick Coyne

Henry DeLozier

John G. Fornaro

Bonnie J. Knutson

Richard Kopplin

Nancy M. Levenburg

Contributing Writers

Chris Boettcher

JaeMin Cha

Donna Coyne

Michael Crandal

Ronald F. Cichy

Barrett Eiselman

John Embree

Larry Hirsh

MiRan Kim

SeungHyun (James) Kim

David W. Lacey

Lynne LaFond DeLuca

Erick Lauber

Mike Leemhuis

Eben Molloy

MacDonald Niven

Forrest Richardson

Ted Robinson

Craig Smith

Andy Stangenberg

Robyn Stowell

Henry

Leading The Way

We will analyze and consult on club and golf facility offerings, operational procedures, revenue growth, agronomics, key personnel, candidate recruitment/ selection, and staff training.

We will “secret shop” the competition, as well as your facility and report on our findings.

BoardRoom magazine is published by APCD Inc. 1100 S. Coast Hwy. #309 Laguna Beach, California 92691

The BoardRoom magazine (USPS 022516, ISSN 15537684) is a bi-monthly trade publication. Issue 258 Periodical postage paid at Laguna Beach, Calif. and additional mailing offices. POSTMASTER: Send address changes to THE BOARDROOM magazine, P.O. Box 9455, Laguna Beach, Calif. 92652.

Reach The BoardRoom magazine at (949) 376-8889 ext. 2 or fax (949) 376-6687, email heather@boardroommag.com or johnf@apcd.com or visit the website at www.BoardRoomMagazine.com.

PUBLISHER’S PERSPECTIVE | 10

EDUCATING BOARD MEMBERS MAKES A DIFFERENCE

JOHN G. FORNARO

Often private club boards are viewed as a necessary evil – can’t live with ‘em, can’t live without ‘em. But boards can be healthy and functional when board members know what’s expected of them. Perhaps the best way is to let them know with a detailed job description.

SETTING AN EXAMPLE ON BUSINESS ETHICS

BY NANCY M. LEVENBURG

No private club, resort, or business organization wants to be renowned for its lousy service quality or its unethical behavior. No organization wants to be known for treating employees unfairly, or treating customers poorly. In fact, all organizations want to be known as being good corporate citizens.

CLUB

THE EDUCATION OF A BOARD MEMBER

BY GREGG PATTERSON

In any culture, whether it’s in a private club or a South American nation, governance is “job one.” Want to create a new culture? Governance is key. Want to sustain a given culture? Governance is key. Want to change a given culture? Governance is key.

GETTING YOUR BOARD ON BOARD| 16

THINK LIKE AN INVESTOR TO GROW YOUR CLUB

BY FRANK VAIN

A prime responsibility of a club board is to develop a plan for the long-term success of their club. The watchwords that increasingly determine that success are Relevance and Value. By updating programs or facilities in ways that regularly draw members to the club, their usage increases.

CASE STUDY | 12

GOING GREEN WITH MEMBERSHIPS

BY RICK COYNE

It’s crazy how compartmentalized and specialized clubs have become. Going Green! For sure it’s a great concept and long overdue. It’s also one that requires science, commitment, investment and teamwork. Every department is touched in one way or another.

BOARDROOM BASICS & BEYOND| 18

A TALE OF TWO CLUBS

BY

RICHARD KOPPLIN

It’s one of the best clubs I have ever visited and five miles away was one of the worst clubs I’ve ever visited. With appreciation and thanks to Charles Dickens, one of my favorite authors, I engage his syntax to tell you a story of physically similar yet philosophically very contrasting clubs. CLUB FACTS & FIGURES| 36

WHAT WILL THE NEIGHBORS THINK?

BY KEVIN REILLY & NANCY S.NUNN

Forget the political debate! Whether it is global warming, climate change, tidal flooding or just nature taking its course, from an industry standpoint, clubs are concerned about providing members with an environment that is healthy and attractive.

WINNING STRATEGIES | 78

MANAGEMENT SUSTAINABILITY 10 RECOMMENDATIONS

BY JERRY MCCOY

Going green or sustainability, I guess, means improving your environment and do no damage. It is also about controlling your environment without letting it control you. FOOD FOR THOUGHT | 82

PERCEPTION SHAPES POLICY IF FOOD WAS CASH…

BY BILL SCHWARTZ

What’s the difference between a Sysco truck and a Brinks truck? The obvious answer would be that one holds food and the other holds cash. But if the Brinks truck has $40,000 in cash on board, and the Sysco truck has $40,000 worth of food, which cargo is more valuable?

GREEN COMMITTEE

By

Bruce R. Williams

Dave Doherty

SECTIONS

Eben Molloy

By Ronald F. Cichy, SeungHyun (James) Kim, JaeMin Cha, MiRan Kim

Hirsh

Envy By David W. Lacey

Bonnie J. Knutson

Governance The Key To Successful Club Operations By Henry DeLozier

- Understand How Lawyer Letters Work By Robyn Stowell

Country Club’s Programs Keep Members Well and Fit

Brown Is The New Green By Chris Boettcher

By Mike Leemhuis

By Ted Robinson

Educating Board Members Makes A Difference

Often private club boards are viewed as a necessary evil – can’t live with ‘em, can’t live without ‘em. But the fact is boards can be healthy and functional.

Board members however, must know what’s expected of them, as should committee members, and perhaps the best way is to let them know with a detailed job description. Just like any other position in the workplace, directors need to know what’s expected of them.

Governance is a prickly subject. Private clubs that started out as the domain of a few are now appealing to a much broader market and people who definitely want a say in the direction of their club.

Yes, there’s a legion of reasons, not the least being the fact that a strong cohesive board can give a private club the thrust, the drive…the impetus and the vision to achieve its – the members’ – goals.

So how do you ensure that your club has a strong cohesive board to address the many critical issues facing clubs today and leading your club to a successful future?

Education is, of course, a major thrust…the direct education of board directors. The focus has to be on what is often termed “stewardship” where the objective is strong focused decisionmaking providing sustained leadership and stewardship for the club today and into the future.

Early preparation unquestionably can prevent difficulties further down the road.

It’s patently clear with club boards, as it is in many aspects of our lives today where we depend upon other people for what we do, that a board of directors is only as effective as its weakest members. If board members aren’t doing the job they committed to and for, it unquestionably has a tremendous impact not only on the board, but also the entire private club.

This can be especially true if a board member is the weakest link by their own choosing…i.e. a lack of commitment, little or no pre-board education or orientation, little or no pre-meeting preparation, being a disruptor or a failed team player. And make no mistake, these board members exist…you may have one in your own midst!

How many evenings or board meetings have been frittered way with little being accomplished while someone harps on their personal agenda, or because an ineffective board member simply hasn’t prepared properly for the meeting and items on the agenda? How often have you gone home with that empty feeling that little, if anything has been accomplished?

Is your board on board? This is where it all begins. Board members need to know what’s expected of them. Role clarification is essential emphasizes Tarun Kapoor, CEO of Kapoor and

The Education of a Board Member

Governance

In any culture, whether it’s in a private club or a South American nation, governance is “job one.” Want to create a new culture? Governance is key. Want to sustain a given culture? Governance is key. Want to change a given culture? Governance is key.

But what is governance? It’s about making decisions, executing the decisions made and enforcing compliance with those decisions. Simple enough. But tough to do, right?

Making sure a club gets the right people in the right seats at the boardroom table is critical. Clubs

that identify the right people, cultivate the right people and then put the right people properly cultivated in the “chairs of governance” will flourish. Some do governance right. Some don’t. Here at The Beach Club, in my opinion. we do governance right.

EDUCATING BOARD MEMBERS –THE PROCESS

Identifying, educating and elevating the right people requires a “process.” Our process is more organic than linear, more experiential than didactic, more facilitated insight than rote learning.

JOHN G. FORNARO

GREGG PATTERSON

Going Green With Memberships

It’s crazy how compartmentalized and specialized clubs have become. Going Green! For sure it’s a great concept and long overdue.

It’s also one that requires science, commitment, investment and teamwork. Every department is touched in one way or another. In California, Governor Jerry Brown just announced a mandatory 25 percent reduction in water usage, more or less forcing that “going green” issue on the general population. This affects everything from watering the grass to offering water only upon request in the dining room.

Over the years, when I think of membership, I’ve always seen green ($$$) too. Initiation fees, dues, ancillary spending, referrals of new members, event and activity participation are all made possible because we have members.

As the late Robert Dedman, Sr. often remarked, “With members everything is possible. Without members nothing is possible.”

The club industry moves slowly and cautiously. We have had to be that way because we are traditional. But, has that traditionalist mentality been too extreme and selective?

At a recent workshop for the Professional Club Marketing Association I asked general managers, “Is food a science?” Nor surprisingly, they universally agreed that it is.

My next question: “How many books have been written about food service?” Again, the universal response was “thousands.” I continued, “How much time are you spending daily in food and beverage?“ While mixed, most admitted they spend a lot of time in getting food service right. Finally I asked, “How much money are you making in food service?” Sensing a rat, they sheepishly replied, “not much.”

Turning membership marketing, I asked, “Do you think marketing is a science?” After some deliberation most agreed that it is. “How many books have been written about marketing?” Thousands, they replied. “How much time do you spend in membership marketing?” Glancing at one another the answer was “not much.”

Don’t get me wrong. I’m not indicting general managers for spending time to get the food

and beverage service right. It is a science and to most members it is one of the top reasons they join and retain their membership. My advice? Keep spending time and keep your members happy. That too, is part of the marketing equation.

Just as “going green” and food service are science, membership marketing and market positioning are every bit as scientific. What’s more they are the primary source of the club’s capital and revenue.

Let’s draw some parallels. Would any food service or club management professional create a menu that’s not in keeping with knowing members’ wants and needs? How do know the answer? Because we take the time to know our members and what they want, and it would be suicidal not to know.

Here’s the reason that membership marketing and market positioning need to be considered a science. Clubs serve two communities. First and foremost is the existing member community.

We do surveys, focus groups and we talk to members to understand their needs. It’s complicated because we have three and four different generations in our clubs, cultures have changed and families have different needs.

The second community your club serves is the prospective member community. Depending on the type of club, your market may be slightly different but it is surely infinitely definable and predictable.

Sustainability means remaining viable and relevant to your next generation of members. As I’ve said so many times before, it you are not offering what the potential members wants, it doesn’t matter how much you charge.

Conversely, if you do the research and let hard data drive your marketing strategy, your brand relevance will vastly improve your market share of potential members.

By the way, this has nothing to do with finding our what the club down the street is doing. It’s about looking at cultural trending, market demo-

RICK COYNE

Setting an Example on Business Ethics

No private club, resort, or business organization wants to be renowned for its lousy service quality or its unethical behavior.

No organization wants to be known for treating employees unfairly, or treating customers poorly. In fact, all organizations want to be known as being good corporate citizens. In today’s world of Twitter, Facebook, Angie’s List, and Yelp, nobody wants to risk negative publicity, particularly when it’s capable of reaching thousands – if not millions – in a mere millisecond.

Business leaders set – and cultivate – the ethical climate within their organization. It’s a topdown model. Why?

Leaders set the standard: Business owners, boards and club managers need to demonstrate that they place a priority on ethics. They communicate this to employees through their goals/objectives, agendas and decision-making standards. According to one source, “Ethical leadership from the top is very important (because it creates an environment in which lower-level ethical leaders can flourish).”

Leaders encourage, measure and reward ethical leadership: Business leaders recognize that they serve as mentors for lower-level managers and employees. They model desired behaviors and encourage performance measurement systems that reward ethical behavior. They recognize that employees cannot be held accountable for maintaining ethical behavior if their own actions are questionable.

EXAMPLES FROM SERVICE FIRMS

Medical records firm: I recently contacted the customer service department of a company that transfers medical records between physicians’ offices. Although I had requested that all of my medical records were transferred, the company only transferred some of them. Dismayed because the company had not properly fulfilled my request, I telephoned the firm and talked with “Melissa,” a customer service representative. Melissa was shockingly rude and sarcastic – even yelling at and talking over me –during the discussion.

So, I wrote to the firm’s director of customer service, “I am dismayed by Melissa’s lack of empathy, friendliness and plain old civility...”

Less than two weeks later, I received a response: “We would like to apologize for your inconvenience. It is not [company’s] policy to treat customers in a rude or disrespectful manner, and it will not be tolerated. The representative you spoke with has been reprimanded and further trained on the proper way to speak to customers…”

I was pleased to learn that Melissa’s supervisor did not condone her behavior, and impressed with the company’s response (particularly training for Melissa). I believe this communicated to her an important lesson about how to treat people.

Hair Salon: How different from the approach taken by a local hair salon after my earrings mysteriously disappeared. (I had done what 99 percent of women do at a hair appointment: remove my earrings and place them on the stylist’s workstation.) The stylist never asked me to put them in a “safer” place, nor did she indicate that it was unsafe to leave them there.

After escorting me to areas of the salon where her workstation was not within my direct view, my earrings vanished. No, they didn’t accidently fall onto the floor. And even if they had, at least ONE of them would have been recovered, because two objects that fall don’t land in the same place.

Despite being a client of both the stylist and the salon for more than five years (the average turnover in the industry is three years), buying oodles of the salon’s exclusive line of products, tipping well, and even taking the stylist a Christmas gift that fateful day, the telephone call I received from the salon owner left me aghast. In a loud, threatening and verbally abusive tone of voice, she told me:

Just stop it right now! You are NOT to have any more contact with my staff. There will be NO coverage... I will NOT pay for your earrings. Do not EVER set foot in my store again! You are to have NO more dealings with my store.

NANCY M. LEVENBURG

GETTING

Think Like an Investor to Grow Your Club

A prime responsibility of a club board is to develop a plan for the long-term success of their club. The watchwords that increasingly determine that success are Relevance and Value.

By updating programs or facilities in ways that regularly draw members to the club, their usage increases. They feel fulfilled and engaged to the point they consider membership a valued part of their lives, not a monthly expense. Continued experiences at this level put them in the “very satisfied” member category, which pays big dividends in terms of support, usage and referrals.

Creating a membership experience that is relevant and valued is the result of careful analysis and planning. One way for leaders to go about this process is to think like an investor.

Successful investors look at major societal trends and commit their resources to the companies that are best of breed in these important sectors. To reap the benefits of technological trends, you would do well to invest in Apple.

An Internet connected world, how about Cisco? Healthy and organic foods, think Whole Foods. Fast casual dining: Chipotle. These are great companies at the forefront of significant societal changes. Notably, their customers are very loyal, despite the fact they have some of the highest prices and profit margins in their respective industries. They deliver value.

There are overarching themes in society where responses from clubs will create the same type of loyalty and value we see at top performing companies. These themes will dominate the future and like the smart investor, each club’s leaders should do some critical analysis to see how their club can respond.

As noted, the green theme , is covered in some of Boardroom stories this issue. People increasingly demand a wise use of resources and protection of their environment. This is especially the case in the affluent demographic that clubs serve.

Responses can vary across the board, from restricting chemical applications on the course to eliminating Styrofoam from the snack shop. There are many other important tips and case

studies on this topic throughout this issue. Many of them are not only good for the environment they also pay off on the bottom line.

In addition to green, major themes that represent opportunities for clubs include serving the increasingly time-constrained society that results from dual income households and other 21st century factors, health and wellness as manifest in terms of things we do, like exercise, as well as the food we consume.

Another major trend line is technology. Clubs remain woefully behind the curve in deploying technology in the service of their members. Smart use of tech will speed up services, connect members with the club and one another, and create efficiencies. That’s three dividends from one line of investment.

Because of the changes in the American household and the child-centric culture that pervades them, clubs should respond by timeshifting their activities and developing facilities that broaden their offerings.

Families will increasingly come to the club in unison. That doesn’t necessarily mean joint use, as mom, dad and the kids might be going in different directions once they get there. All of them want to be in a safe and secure environment with recreational and social facilities to match. Invest in rooms that keep kids busy and entertained and you’ll get their parents’ time and support.

Health and wellness will continue to grow as a club theme. In fact, our research tells us the demand in this area will outpace any other club activity. One way that this plays out is to have a fitness facility, but this is only one element in building a healthy club.

The future will include a much larger focus on wellness. For some clubs this will go as far as having medical support staff and physical and athletic training. For others it might involve aligning themselves with local service providers who can bundle these services for their members.

FRANK VAIN

A Tale of Two Clubs

It’s one of the best clubs I have ever visited and five miles away was one of the worst clubs I’ve ever visited.

With appreciation and thanks to Charles Dickens, one of my favorite authors, I engage his syntax to tell you a story of physically similar yet philosophically very contrasting clubs. Dickens’ genre, of course is fiction. However, these club tales are factual and true. Only the names have been changed to protect the innocent.

It has been over three years since I worked with Happy Hills Country Club, located in a major mid-western city and about two years since I was engaged by Slippery Slope Country Club in the same city only a few miles away. Both clubs have strikingly similar demographics and compete for the same members since they provide almost identical facilities and amenities.

Happy Hills Country Club will continue to thrive and enjoy outstanding management and enlightened governance as that club engages “best practices.”

Conversely, Slippery Slope Country Club will muddle through with mediocre management and fractured governance. When private clubs engage “best practices” they can experience the best of times, while clubs that ignore those practices will surely encounter the worst of times. It’s a choice Dickens would understand.

Both golf courses are highly rated and each clubhouse has been through recent renovations. The initiation fees are within a couple thousand dollars of each other and their monthly dues are also comparable with one club only $50 more per month.

Capable and experienced general managers, who are supported by equally dedicated and talented department managers, manage both clubs. A nine-member board governs each club and each elects their club president for a one year term. But that’s where the similarities end.

Happy Hills Country Club engages at least three of what I describe as “best practices” in the governance and management of their club while Slippery Slope Country Club seems oblivious to the trends and business practices so apparent in successful clubs. There are at least three significant “best practices”, which clearly differentiate how these clubs function in the market place.

BEST PRACTICES

First, the general manager of Happy Hills Country Club is not only active in the Club Managers Association of America, but he is currently a director for his local CMAA Chapter and has attained his CCM designation. His peers, not only in the local club community, but also nationally, by many managers who respect him as a dedicated colleague, know him.

The board at Happy Hills has encouraged the general manager to participate in CMAA and board members have seen the many benefits that his membership in CMAA has brought to the club.

The general manager at Slippery Slope Country Club, while a member of the Club Managers Association of America, seldom participates in the monthly chapter meetings and has not attended a national conference in over seven years. He is not pursuing his CCM designation, even though he has many years of experience in the club business. Very few of his fellow managers know him on either a professional or personal level and he has little or no contact with club managers outside of his local community.

Slippery Slope’s board is not aware of the resources CMAA provides and board members don’t comprehend the significance of the CCM designation.

HAPPY HILLS EXPANSION

Happy Hills general manager is currently leading his membership through an exciting expansion. He continues to receive the trust and admiration of a board, which supports his professional management. The general manager at Slippery Slope Country Club is struggling with a declining membership and an erosion of his

RICHARD KOPPLIN

board and membership support. He has chartered a course as a “lone ranger” and has never developed the support system so readily available from his CMAA peers.

The second “best practice” engaged by Happy Hills Country Club is a very thorough new board member orientation. Following the annual meeting and before the first board meeting with the newly elected members the general manager schedules a half-day orientation.

The three new board members and the current club president meet the general manager at 8 a.m. at the club on a day when the club is fully operational. The general manager begins by taking the new board members and the club president on a walking tour of the facilities.

He introduces them to the executive chef and allows the chef to explain his commitment to quality, his purchasing procedures and how the kitchen functions on a daily basis. Additionally, the chef will introduce all of the kitchen employees to the board members and describe how his team prepares for a typical day at the club.

From the kitchen the general manager leads the board members into the golf pro shop and goes through the same process with the golf professional. He then tours the group through the fitness/tennis/swimming facilities, the administrative offices and ends the morning at the golf course maintenance area.

The golf course superintendent demonstrates the computer driven automated irrigation system and describes the various record keeping procedures necessary to run his business. The mechanic will explain how the equipment is maintained and will discuss the costs associated with replacing equipment on a timely basis.

Following the tour the general manager invites the new board members and club president to have lunch while he reviews the past three months financial statements and board meeting minutes.

The general manager explains that each new board members will chair a committee and he will be assisting them in developing the committee meeting agendas and taking the committee minutes, which will include any recommended “action plans” for board approval.

The club president then corroborates the comments and actions of the general manager by endorsing the processes he has just described to the new board members.

SLIPPERY SLOPE

Slippery Slope Country Club’s new board member orientation is very different. The general manager copies the minutes from the past six months of board meetings and also provides financial statements for the past three months. He includes a letter in the packet, which he mails to the new board members, advising them to call him if they have any questions. The clubs president contacts the new board members to tell them which committee they will chair and how he wants them to prepare for a board meeting.

After observing these two dissimilar introductions to club governance it doesn’t surprise me that Happy Hills enjoys 90-minute board meetings while Slippery Slope board members stumble through three to four hour sessions every month.

An annual “board retreat” day stands as the third “best practice” engaged by Happy Hills Country Club. The general manager and the entire board go to a resort course, a three-hour drive from their club. They check into the resort in time to have dinner together and the next morning attend a half-day work session with a facilitator from 8 a.m. until noon. Following lunch the board plays golf and concludes the day with their spouses at dinner.

The general manager and the board have found that this annual retreat allows them to focus on key issues at the club in a dispassionate manner and also provides a great environment for strategic planning. The camaraderie and goodwill, which exudes from this meeting provides a great working environment for the balance of the year.

Slippery Slope Country Club’s general manager and board don’t believe that the time or expense of such an outing has any benefit and they have never attended any type of seminar or meeting outside of the club. The current board is struggling with some issues internally and is having difficulty keeping some board member conversations confidential following the board meetings. I wonder why.

While continuing to observe these clubs I can almost predict the outcome. Happy Hills Country Club will continue to thrive and enjoy outstanding management and enlightened governance as that club engages “best practices.” They will prosper as a private club, no matter what challenges may be on the horizon.

Conversely, Slippery Slope Country Club will muddle through with mediocre management and fractured governance, almost oblivious to how much better their club could function. It’s only a matter of time before they become a “semi-private” facility or become a “take-over” candidate for one of the ubiquitous golf management companies.

This “tale of two clubs” is being played out in almost every city I visit. When private clubs engage “best practices” they can experience the best of times, while clubs that ignore those practices will surely encounter the worst of times. It’s a choice Dickens would understand. BR

Dick Kopplin is a partner in Kopplin & Kuebler, LLC an executive recruiting firm providing services to the private club industry. The company has offices in Scottsdale, Arizona and Jupiter, Florida. He can be contacted at (480) 443-9102 or at www.kopplinandkuebler.com

Sarasota Yacht Club Celebrates As A Distinguished Emerald Club

KUJAWSKI ALSO HONORED AS A BOARDROOM TOP PRESIDENT

COLOR SARASOTA YACHT CLUB GREEN…EMERALD GREEN WITH ENVY, THAT IS!

Emerald Green, because Sarasota Yacht Club is being recognized as a BoardRoom magazine

Distinguished Emerald Club

“Winning this distinction confirms that our efforts to enhance the membership experience have not been in vain,” enthused Commodore Bobby Overall. “ And the fact that even to be nominated for this award, you first must be recognized by your fellow clubs an as outstanding venue, adds to the great honor.”

In 2014, The Distinguished Club’s nominating committee comprised of general managers from some of the top private clubs in the country, nominated Sarasota Yacht Club to be considered for this prestigious designation.

A Distinguished Club surveyor visited the club for completion of the detailed survey; interviews with each department head, a tour the club and a session with general manager Bernie Kloppenburg. Department heads completed an additional questionnaire for their respective departments, and the Distinguished Club’s surveyor scored the club based on the Distinguished Club’s proprietary formula.

Distinguished Club’s Chief Analyst Frank Gore completed additional research outside the club, tabulated all the club’s scores and created the club’s member experience score.

Sarasota Yacht club averaged a 9.0 or greater on a 1-10 scale in every department. As a result the club has achieved the highest level a Distinguished Emerald Club.

About 350 members recently gathered to acknowledge the club’s recognition as a BoardRoom Distinguished Emerald Club – members greeted by a member of the club’s membership committee as they stepped out of their cars, and to celebrate the club’s success.

WRITTEN BY DAVE WHITE, EDITOR

Long time member Mary Sue Wechsler explained how the club

“has provided us with a wonderful group of friends…It’s nice to know how the emphasis of the award was on the ‘intangibles’that make SYC so special to all of us.” Ah, yes, the intangibles that contribute so much to the member experience!

The evening of fun and frolic, planned as part of the club’s “It Starts With Me2” campaign, highlighted ‘the importance of each member (me) creating positive member experiences for fellow members.’

Analyst Frank Gore opened the event via a Skype appearance, explaining the Distinguished Club’s selection process to the members, “lending validation to the process because many of our own members have gone through a similar process in their own industries,” added GM Kloppenburg.

“It was an incredible night of excitement,” said Gore, of the club first organized in 1917. The club has a compelling history including use as a base during the Second World War.

Four staff members also were recognized with individual Distinguished Emerald Club staff awards, including: food and beverage director Anthony Puccio, member relations director Stephania Feltz, dock master Spencer Way, and sailing director Holly Stephens.

“Our staff has been intensely committed to creating positive member experiences for each of our members – from the instant our member walks through our front doors to the time they get back into their cars,” injected GM Kloppenburg.

“This impressive award is a true mission moment for all of us and it was such an honor to celebrate together with staff and members. Many of our members likened it to the Academy Awards of Clubs and I must agree with them. What a galvanizing experience for the Sarasota Yacht Club!”

Many of those attending experienced ‘that feeling.’ Board member Lynn Milliken added, “SYC receiving the Emerald Award confirms that the cruise the club has been on the past five years has been very well charted and skillfully navigated by the board, the leadership, staff and membership.

Knowing Your Golfers’ Wants and Needs Is Key to the Member Experience

SPECIAL TO BOARDROOM

Knowing what your golfing members want is an absolute for a private club staff.

“Some members like the social aspect of golf and others take the game very seriously. You need to learn your member’s wants and needs and train the staff to do that as well,” explained Theron Harvey, PGA professional, director of club operations, Hudson National Golf Club, Croton-on-Hudson, NY.

“We all need to know our membership and our employees to truly come up with the perfect plan to meet our member’s expectations.”

Growing the game and retaining members are the most important goals, but learning and putting the PGA’s business leadership programs into practice plays an extremely important role in the lives of PGA specialists like Theron Harvey.

It’s these programs, Harvey says, that have helped him transition from an assistant professional to his present position as HNGC’s director of club operations.

“We consider ourselves of the same model as Augusta National and Pine Valley.  We have a full local membership with a waiting list and are close to selling out our national membership,” Harvey explained.

“Our board of directors and respective committees meet each month, and we discuss the members’ wants and needs at a town hall meeting every fall. This helps us adjust our vision so members and staffers are always working toward the same goals.”

The McMahon Group’s most recent survey at Hudson National confirmed that the board of director’s vision is correctly aligned with what the members want.

“The results were terrific,” Harvey enthused. “But we all look for constant feedback through member letters, reminder emails and in person interactions at the club.

“I also try and play golf with different groups of members a couple times per week. That’s the best way to see the golf course, interact with members and get out of the office to be with members. It’s important not to lose that face time with the members,” Harvey suggested.

“Juniors, women, and players new to the game are just as important as our club champions and scratch golfers,” he reasoned. “Our staff also needs to address everyone by name three times in a conversation and ensure that everyone on

property is acknowledged by name, including guests. The staff also needs to remember that a great golf experience is different for every member

So how does Harvey get the ‘buy-in’ he needs from his staff?  Policy, procedures, and orientation manuals, along with extensive staff training before Hudson National opens each season obviously helps. And it doesn’t stop there.

“That training is ongoing throughout the season and well based on a performance management plan with goals and objectives for each staffer. We stress these goals and objectives in individual staff meetings during the season to make sure everyone is staying on target.”

Being a PGA business leader means constantly planning, analyzing finances, practices, interacting with members, planning events that work, and making them better while eliminating the ones that don’t.

“Pre-selling to the board and department heads is the most important component to putting a plan into action. I believe this is the only way to get everyone to buy-in to what we are doing. Communication and transparency is key,” Harvey expressed.

“We also create great value by watching our club finances carefully while still offering the best-in-class service, staff training, and golf experience. Do not chase after the pennies and let the dollars fly away – these are a couple of concepts I use every day,” Harvey added.

“We need to keep coming up with ways to add value for our members. It might be a tee gift for guests at an invitational event, encouraging outings to purchase prizes through our golf shops at a discount, and walking the practice range giving nocharge tips to new golfers or members that love to practice.”

Harvey and his staff focuses on private golf instruction with Trackman, weekly skins games, always pairing up members; more open play versus extensive tournament schedules, and interacting with every member each day they are on property.

“The experience needs to be different than other clubs in your area and it needs to light a fire in our golfers to come out and play. Growing the game and retaining your members through a great member experience are the most important goals,” Harvey stressed.

“Making a great golf experience requires a lot of attention to detail, and a team of players dedicated to the game and the club, working together and on the same page with one common goal of making golf at our club a memorable experience every visit!”

BR

PGA SPECIALISTS LIKE THERON HARVEY

When It Comes, Deal With It!

Take this job and shove it. I ain’t workin’ here no more.

- Johnny Paycheck

Over the last 20 years of my career I’ve never had to fire even one person. But, have (from time to time) accepted a few resignations.

Every workweek, we have many things atop our morning desk demanding attention. And, using a deck of cards as an analogy, we are wise to not simply keep a messy pile spread face down and then randomly pick one to begin working on.

Instead, shuffle the ever-changing deck, look at the face value of each card, and then prioritize by leaving in our hand what represents our greatest ROI in time and decision-making. There is nothing random about it at all.

Let’s say Wednesday morning we have successfully identified our current top 10 priorities. Unencumbered, we start with number one and then systematically begin moving through all 10. (Whew! Are we good, or what?) That would mean that after cleaning our desk at the end of the day, on Thursday morning we would have 10 new top priorities where we’d again start with number one and then systematically begin moving through another 10. Right? Wrong!

Well, it turns out that Wednesday was pretty hectic with meetings, a few unforeseeable situations, and an incoming email that required your immediate response in the form of a detailed report. Sooooooo, the fact is, we only got through five of our priorities – plus another opportunity that wasn’t even on the list, but raised its head with a real sense of urgency to it.

Does that mean that all the remaining cards (starting with what used to be number six) will now all in lock-step move up to become the new top priorities? No. Why not?

Because EVERY day, we again shuffle that ever changing deck, look at the face value of each card, and leave in our hand what for the moment are our new priorities. And, by the way, all those meetings, unforeseeable situations, emails, etc. don’t just happen on Wednesdays, do they?

Every day is a new day with new priorities all of their own!

OK. Now let’s go back to where I said ‘from time to time I have accepted a few resignations.’

In every deck there are a few “Jokers” that need to be discarded. While the vast majority of the team performs off the charts and is dedicated to continuous improvement, face it, there are indeed a few that ultimately need to hear those famous words: “You’re fired!”

Now because the deck is always being reshuffled with coaching, counseling, training and documentation, habitual underperformers may take a while until landing on your desk and into your hand as a top priority of your day. But, when that day comes, deal with it! Never procrastinate or put it off. When it is in the best interest of all concerned — fire them!

Actually, you can’t really fire them at all. Why?

More than likely they’ve already quit many times and have just been bouncing around the deck for some time now. They quit: supporting the team, improving, and making their job performance a priority.

So, when that day comes, directly acknowledge the fact that they have quit and ‘ain’t working here no more.’ If it has gotten this far, formally accept their resignation! It’s a priority. BR

Oh, and one more thing, just in case you’re wondering. The letters after our author’s name Michael Crandal, CNG — stand for: Certified Nice Guy. Self-certified, by the way. But, a nice guy nonetheless. Michael is a frequent BoardRoom contributor and can be reached at 1 (760) 464-6103 or via email: mjcatexmor@aol.com

He and his wife, Kim, reside in the Buckhead area of Atlanta, GA.

MICHAEL CRANDAL, CNG

“Our team represents over 150 years combined experience in Platinum© recognized clubs, including country, golf, yacht and city clubs, and has worked with over 600 clubs across the country and around the world.”

BULLETPROOF YOUR CLUB IN THIS ECONOMY WITH THESE SUCCESSFUL PROGRAMS

Strategic Board Retreat and Planning

This retreat focuses the board on the top five strategic objectives to enhance their club right now.

Team Development

This workshop identifies specific strategies that assist department managers in facing the variety of challenges in the club business.

Board Dynamics/Model Clubs

This workshop addesses critical issues facing general manager/COOs and their boards in today’s club environment.

Award Winning Service

2014 SEARCH FIRMOFTHE YEAR Eight years in a row

2014 GARY PLAYER EDUCATOROFTHE YEAR Kopplin & Kuebler

2014 MID-MANAGEMENT SEARCH FIRMOFTHE YEAR Kopplin & Kuebler

2011 LIFETIME ACHIEVEMENT Dick Kopplin

2011 GARY PLAYER EDUCATOR Kurt Kuebler

DICK KOPPLIN KURT KUEBLER LISA CARROLL JACK SULLIVAN

TOM WALLACE ARMEN SUNY

Equity Private Country Club Business Model

IDEAL OR DYSFUNCTIONAL?

BARRETT EISELMAN

What position guarantees that your boss will change each year and where the chances are very slim that they have ever worked in the club industry?

This private club business model is unique and while it may even be considered dysfunctional, it can also be ideal depending on how the club leadership team manages it.

A common comment I hear from general managers is that they are tired of their board micromanaging their club.

My response to this has thrown a few people back when I say, ‘Well, maybe they do this because they are not confident in the club’s leadership?’ Club boards do not want to micromanage, but some feel the necessity to do so because they either lack confidence in their club’s leadership, or they just don’t know any better because they never received the proper orientation explaining their roles and responsibilities.

When a new committee or board member attends their first meeting and the dialogue is around daily operations, it only makes sense that they will assume that this is their role.

If managed right, this can actually be the ideal situation for you. Just because a board member does not have club management experience doesn’t mean that they do not have a strong business acronym.

Very soon in their tenure they will know if you are a strong leader or not. Do you have exemplary communication skills? Do your associates want to work for you? Does the membership see you as the leader?

Earn the board’s respect and this will lead them to having the confidence in you and your team. In turn, they will focus on what their responsibilities should be and not be taking valuable time during the monthly board meetings questioning and discussing the club’s daily operations.

I hear too often that a club’s monthly board meeting can last four, five or even six hours. When board meetings are this long it sends a

message to the membership that there must be a lot of problems that are being addressed, or the board continues to revisit the same issues over and over and can never make a decision.

Here are a few practices to consider helping build the confidence of your board:

• Have a thorough orientation for the incoming directors so they have a clear understanding of their roles and responsibilities. The club bylaws should have a description of these responsibilities and they need to be presented and practiced

• Take more control of the board meetings by working with the president on the agenda. Also, consider allocating a certain period of time for each item to help you stay within the targeted time frame

• Board members who are active at the club certainly have a pulse of the daily operations and where the concerns, challenges and accomplishments are. Address these in your GM report so they are covered and it doesn’t look as though you are trying to hide anything from them.

If they know you are confident in presenting the good, the bad and the ugly, they will feel confident that they will not ever be blindsided by another member while enjoying the club themselves.

Therefore, when you make it a practice to address this during your report, it will diffuse the feeling they need to bring it up during the meeting, which can cause several minutes of unnecessary dialogue.

Some may look at the private club business model as dysfunctional and it certainly can be if not properly managed. The club general manager should look at having a new board president each year as an ideal opportunity to impress, not a dysfunctional opportunity to fail. BR

Barrett Eiselman, CCM, is GM/COO of Silver Creek Valley Country Club and can be reached at: (408) 239-5340 or via email: barrett.eiselman@scvcc.com

Employee Wellness Program Has Major Benefits For Membership Satisfaction

As club managers, we consistently strive to deliver extraordinary service to our members every day.

Members view their clubs as their home away from home, and we strive to continually exceed their expectations.

While club managers take great pride in facilities and amenities, we also recognize that our employees have the greatest daily influence on the member experience. We continually rely on our staff to convey their enthusiasm and energy to the membership. Therefore, it is incumbent on us as managers to create a “wellness” culture that emphasizes healthy workplace programs, policies and practices.

The logic is simple: Employees who feel valued provide better service to our members. Happy staff equals happy members. According to Corporate Wellness Magazine, every $1 invested in an employee wellness program yields roughly $4 in savings through reduced sick days, increased productivity and decreased overall health costs.

Employees who appreciate these efforts are also less likely to seek other jobs. As we all know, it is critical to retain quality employees who can deliver a personalized level of service to our members.

As one of America’s Healthiest Clubs, we understand that both members and employees thrive when focusing on their wellness and these factors led our human resources department to create the Woodfield Wellness Challenge – divided into three categories: nutrition, fitness, and lifestyle.

Employees received incentives for participation, with the raffled grand prize being a choice of $500 or 40 hours paid time off. Our human resources department managed the challenge, and organized an Employee Wellness Expo and a Community Services Expo.

The Wellness Expo offered employees free cholesterol, glucose and blood pressure readings. Employees also received a free AngioScreen®, a non-diagnostic vascular screening that determines possible risk of heart disease and stroke. In addition, booths featuring a variety of healthy lifestyle vendors were set up in our ballroom. Employees visited vendors throughout the day, as their schedules permitted. Woodfield incorporated both physical and mental health goals into our Wellness

Challenge. A recent national survey commissioned by UnitedHealth Group found that an overwhelming majority of participants reported feeling mentally and physically healthier after volunteering. Therefore, we designed a Community Services Expo to match employees with various local volunteer organizations. Again, employees enjoyed the exhibit onsite during working hours.

Woodfield sponsored other onsite wellness activities throughout the Challenge, such as:

• Attending an afternoon healthy cooking class taught by our executive chef

• Meeting one-on-one with a registered nutritionist

• Participating in Woodfield’s Employee 5K run/walk, and

• Enjoying several “lunch and learn” activities during meal breaks

The results of our inaugural program were so outstanding that it’s now a permanent part of our club culture. Woodfield’s year-long Wellness Challenge begins each April, and we will continually add new initiatives to keep it fresh and interesting. Anecdotally, we have noticed many other benefits that include:

• A 20 percent reduction in YTD medical claims for the club

• Improved camaraderie among employees from participating in events together, and

• Increased energy levels and weight loss.

In general, Americans are spending more time at work and managing more stress than ever before. Within country clubs, this is especially true during our peak seasons. Onsite wellness programs allow us to help employees incorporate healthy living into their busy lives.

It is our responsibility as managers to value our greatest asset and ensure that employee wellness drives the essence of our club culture. BR

Eben Molloy is general manager of Woodfield Country Club, a BoardRoom Distinguished Emerald Club of the World. Woodfield is a family-oriented social and recreational full-service equity country club featuring a wide range of residential selections and world-class, resortstyle amenities. Woodfield is the recipient of several of the highest designations in the country club industry, including America’s Healthiest Clubs.

EBEN MOLLOY

New Generation of Clubhouse Interior Designers: Creative

Personal and Timeless

The club industry has changed and members no longer want an ordinary, predictable clubhouse décor, complete with heavy pattern, deep colors and miles of dark stained paneling. Members want relevant, fresh design with a personal touch.

The challenge for clubs today is staying current and unique. If your clubhouse is dated, predictable and ordinary, members will likely choose the local trendy bar and restaurant over an evening at the club. As clubhouse interior designers, it is our challenge to stay on top of all design trends and be in touch with what members want and expect from their club.

Design that is perfectly suited for the newest and hippest hotel interior will quickly appear dated when the average clubhouse retains their design for upwards of 15 years. A delicate balance between fresh and timeless is a preferable approach.

Knollwood Club, in Lake Forest, Illinois, was in dire need of an interior refurbishment. Built in 2000, the clubhouse was well appointed with classic interior architecture, appropriate for the style of the exterior. The furnishings and finishes, however, were dated and worn, and the members had grown tired of the predictable out-of-date club aesthetic.

In November, HINT | HARRIS INTERIORS was hired by the club to refurbish the clubhouse. HINT’s design concept was casual, fresh and light with a residential feel. The furniture arrangement was carefully studied in an effort to maximize multiple opportunities for member gathering spaces.

The red wall-to-wall carpet was removed and richly stained hardwood floors were installed in place. Light, neutral paint colors were selected for the walls. A stained timber ceiling was refinished and new decorative lighting in painted finishes offers more adequate light. A wall of interior windows was removed, allowing natural daylight to flood the entry and living room. Non-relevant artwork was replaced with the club’s historic memorabilia, which HINT carefully achieved and framed. Poorly scaled and significantly worn furnishings were replaced with quality antiques and comfortable lounge seating. Richly patterned area rugs with subtle color compliment the finishes and fabrics throughout.

The renovated clubhouse opened for Easter and the project exceeded the members’ expectations. The renovated spaces are being used like never before. Members are proud of the new display of their club’s history and golf memorabilia, which showcases the 1956 Amateur and the club’s original horse stables. The variety of seating opportunities has created a new sense of community and the lighter feel was welcomed after a cold and gray winter season. BR

HINT | HARRIS INTERIORS is a full-service clubhouse interior design firm based in Atlanta, Georgia. Our personal attention to projects, combined with our understanding of current design and club trends sets us apart from our competitors. Please contact us for more information, including references and client resume.

CMAA Launches 2027 Club Professional Initiative

The Club Managers Association of America’s board of directors has launched a new initiative designed to ensure that the specialized competencies of club management professionals meet the changing club world.

This 2027 Club Professional Initiative coincides with CMAA’s centennial year and is focused on developing new skills, beginning in 2015 and continuing with new educational programs and initiatives for many years to come.

It was launched at the CMAA’s 88th World Conference held in in San Antonio, TX recently.

“It is CMAA’s primary mission to ensure our members are well equipped to lead clubs not only today, but going forward. What a great way to honor the centennial of CMAA by ensuring that club executives are aptly prepared for the business world we will face in the association’s next 100 years,” explained outgoing 2014 CMAA President Damon DiOrio

CMAA will initially create a think tank style concept and will engage individuals within and outside of the club industry. CMAA hopes to broaden this effort by engaging other related organizations, universities and business partners as part of this initiative.

The initiative will include the following components:

• A group of club and industry thought leaders focused on designing and developing the competencies of club managers and club leadership of the future. Competency areas to be considered will include organization sustainability, business analytics, member behavior, data analytics for decision making and brand management.

• Development of new education programs to be delivered by CMAA and its Chapters, including the expansion of CMAA University.

• An increased focus on how professional competencies are achieved, including a potential for an executive-level Masters program and other executive level education.

• Consideration and desire for involving industry partners and sponsors as part of the development efforts for this initiative.

CMAA President Tony D’Errico added, “I am extremely excited the CMAA board has taken action on an initiative like this. Contemplation of a Masters level program in club management is a priority for consideration during my upcoming year.”

CMAA will initially create a think tank style concept and will engage individuals within and outside of the club industry. CMAA hopes to broaden this effort by engaging other related organizations, universities and business partners as part of this initiative. These and other allies, like The Club Foundation, will be vital in bringing the 2027 Club Professional Initiative to fruition.

The initiative begins with changes to CMAA’s Business Management Institute (BMI) V program in the fall of 2015. The program focuses on strategic leadership and is designed for club management professionals who have attained their Certified Club Manager (CCM) designation or have eight years of professional status membership in CMAA.

BMI V, slated for November 2-6, will move to Boston, MA. The five-day program will feature new programming on executive presence, and give attendees tools for professional development and growth through 360 degree reviews and integrate sessions at Boston-area clubs.

The program also includes the Herrmann brain dominance instrument, a system to measure and describe thinking preferences in people, developed by William Herrmann while leading management education at General Electric.

CMAA’s chief executive officer Jeff Morgan stated, “CMAA and its forward-thinking board are moving strategically to assemble a collaborative community of professionals who are taking responsibility for their profession with the dedication of time and resources at all levels. This enhanced approach to professional development programming will yield immediate and sustained results for many years to come.” BR

The Club Managers Association of America (CMAA) is the largest professional association for managers of membership clubs with 6,500 members throughout the US and internationally. Our managers operate more than 2,500 country, golf, athletic, city, faculty, military, town and yacht clubs. To learn more about CMAA’s current educational programs, please visit www.cmaa.org or contact Jeff Morgan or Jason Koenigsfeld, CMAA SVP, professional development at the CMAA National Headquarters at (703) 739-9500.

What Will the Neighbors Think?

Forget the political debate! Whether it is global warming, climate change, tidal flooding or just nature taking its course, from an industry standpoint, clubs are concerned about providing members with an environment that is healthy and attractive.

The club also wants to manage its expenses and maximize the return to members through its services and amenities.

Your members are becoming more aware of their influence and impact on society and the environment. Who heard of sustainable investing just a few years ago?

The club may be sending electronic versus paper statements and newsletters to its members. It communicates through email and social media. The club most likely has started a recycling program, either voluntarily or as a result of state or local laws. The food and beverage department has at least considered sustainable food sources and environmentally friendly supplies. But have you included environmental impacts and energy efficiencies in your capital improvement and maintenance plans?

According to the 2015 issue of Clubs in Town and Country, published by PBMares, LLP, clubs require constant maintenance and improvements. Also clubs require renovation to stay relevant and compete in the current market.

As stated in the publication, “Members seem more willing to invest in improvements if they can justify the costs.” With the nearly constant need to renovate and innovate, incorporating currently available, cost effective, green technologies and practices into your capital plans is imperative.

There are cost savings to be had in planning capital improvements appropriately. Ongoing maintenance costs can be reduced in addition to having positive environmental effects.

According to Mark Tercek and Jonathan Adams, authors of Nature’s Fortune: How Business and Society Thrive by Investing in Nature (The Nature Conservancy, 2013), New

York City’s planners found that by planting trees and making other improvements to the Catskills watershed rather than building a giant water treatment plant, they could realize a savings of about $6.5 billion. Their solution provided a “win-win-win”, for the city, residents of the Catskills and land conservationists.

Several clubs and resorts have participated in the Audubon Cooperative Sanctuary Program for Golf Courses, working with Audubon International to develop environmentally responsible maintenance practices.

Evaluation and planning helps golf course superintendents balance the demands of the users with the responsibility to the natural environment. If planned appropriately, courses can utilize the natural terrain and native florae to provide unique and sustainable greens. Often these designs can provide natural buffers to pesticide and fertilizer runoff, as well as reducing the use of those chemicals and thus the cost of maintenance. Furthermore, water usage can often be reduced and storm water management enhanced, increasing the cost savings.

Stone Mountain Golf Club in Stone Mountain, Georgia began a project in 2012 to convert all of their plant beds to native perennials from annual flowers. They also created new native plant beds along wildlife habitat corridors, native grass areas, early stage succession fields, mixed forest with understory, and shoreline and wetland areas.

The club estimated it saved about 100 million gallons of water by eliminating high maintenance turf and gardens and using native plants instead. Stone Mountain also realized reduced labor costs in mowing and other maintenance of turf areas.

Other capital improvements with an eye to energy efficiency can also be of benefit to your club. While the federal government has been unable to pass legislation in any timely manner to provide incentives for the for-profit club, club contractors, or non-profit clubs, state legislatures have been working more rapidly to encourage sustainable development and energy efficiencies. Localities, too, are more conscious

KEVIN REILLY

NANCY S. NUNN

of working within their jurisdictions to support efforts in preserving green zones, providing urban buffers, and encouraging energy savings.

The Database of State Incentives for Renewables and Efficiency (DSIRE) listed 2,783 different incentives from states and localities on its website dsire.org as of March 13, 2015. DSIRE is operated by the North Carolina Clean Energy Technology Center at North Carolina State University and funded by the United States Department of Energy. Not all incentives are available for all entities. Programs vary and some are pilot programs with expiration dates.

Some examples of what might be available to a property considering capital investment plans and which might want to incorporate energy efficiencies in those plans include:

• Minnesota and Maine provide rebates for energy efficient property purchases.

• In Virginia, Dominion Virginia Power provides incentives for solar photovoltaic systems.

• Virginia and the City of New Orleans have net metering agreements, whereby the power companies will net out the excess energy generated from renewable energy generating technologies, invested in by their customer with the customer’s usage (any available energy credits revert to the utility company).

• North Carolina has a renewable energy credit for 35 percent of the cost of up to $2.5 million of renewable energy property constructed, purchased or leased by a taxpayer (available to offset up to 50 percent of corporate tax or gross premiums tax).

• Wisconsin provides a property tax reduction for biogas, synthetic gas or solar energy systems regardless of whether the equipment is deemed real property or personal property.

Conservation easements on club property may be another opportunity to manage costs, as well as provide funds for capital improvements. While situations differ, easements may be negotiated with localities for several reasons, including watershed protection or pollution control.

An easement usually restricts the club’s use of the respective property in some ways, but may not entirely bar its use from the membership. However, it could reduce or lock in assessed value for property tax purposes. In addition, the proceeds that may be obtained for the easement could offset the cost of other needed capital improvements.

In at least one private letter ruling, the IRS ruled that a 501(c)(7) (tax-exempt) club would not jeopardize its tax status by the sale of a conservation easement and that if the proceeds were invested in other property used directly in the club’s exempt function, the gain would not be taxable.

Outreach to and education of your staff and members will go a long way toward providing support for these plans. Let them know what you are planning, when, where, and why. Often these enterprises lead to other member

involvement, such as family programs or kids camps, which can piggyback off of these improvements.

The Stone Mountain Club participated in the North American Butterfly Association Butterfly Count as part of their habitat enhancement case study. For Earth Day week in mid-April, Audubon International introduced the first global Golf Course Bio Blitz, a free species counting competition.

It’s designed to create awareness among golfers and the community about the environmental value of the habitats supported by golf courses. The program, sponsored by the United States Golf Association, is open to any golf course worldwide.

While, according to The Case for Green Infrastructure (a Joint-Industry White Paper, June 2013), “Green Infrastructure solutions often demonstrate financial advantages compared to gray infrastructure”, you must plan carefully.

Stone Mountain Golf Club began a project in 2012 to convert all of their plant beds to native perennials from annual flowers. They also created new native plant beds along wildlife habitat corridors, native grass areas, early stage succession fields, mixed forest with understory, and shoreline and wetland areas. The club estimated it saved about 100 million gallons of water by eliminating high maintenance turf and gardens and using native plants instead.

Connect with contractors who have experience in the areas you are considering to maximize the effectiveness. Inquire of other clubs and resorts that have made such improvements to determine what obstacles you may encounter.

In addition to enhancing the club and reducing costs, you can have a positive effect on the surrounding community. What will the neighbors think? BR

Kevin F. Reilly, an attorney and CPA, has been involved in the hospitality area and clubs in particular, for more than 25 years. He is a member of the firm of PBMares, LLP. Mr. Reilly is located in the Fairfax, VA office. He may be reached at (703) 385-8809 or by email at kreilly@pbmares.com.

Nancy S. Nunn is a CPA and Accredited Business Valuation expert. She is a tax manager and a member of the hospitality team at PBMares, LLP and has more than 20 years in public accounting. Ms. Nunn is located in the Williamsburg, VA office. She may be reached at (757) 229-7180 or by email at nnunn@pbmares.com.

Club Volunteer Leaders Working Collaboratively with GMs/COOs PART III – FIDUCIARY RESPONSIBILITIES

BY RONALD F. CICHY, SEUNGHYUN (JAMES) KIM, JAEMIN CHA, MIRAN KIM

Club volunteers take on the responsibility for leadership at the club because they are the owners of the club, its traditions, its practices, and its culture.

Given the time, skills, and experiences that volunteer club leaders invest, what are the most productive contributions by the member?

In our study, we asked general managers and COOs members of the CMAA to identify and clarify roles of their clubs’ board members. In the results, communication clearly was the top attribute of a productive volunteer leader…communication categorized as member communication with members and communication with management.

club; attending club events and meetings; promoting the club in the community; supporting the club’s leadership teams, and enhancing the reputation, image, and brand of the club.

One way to view this is to ask: What does it take to be the recognized leader as a private club in our community?

Recognized by whom? – By members and non-members, by staff and prospective staff, by the community, by suppliers and vendors, and by any others who are looking at the club for whatever reason.

When advising, guiding and supporting management, volunteers then empower the GM/COO to handle the dayto-day operations. Board members are active and advise the GM/COO where the members have expertise and skills and knowledge to do so.

Both volunteer and paid leaders are fiduciaries. That is, stewards of the club’s assets, reputation, traditions, and legacy. Stewardship requires financial systems to operate and manage in a way that is ethical, above board, and generally accepted as a desirable practice in private clubs.

Fiduciary responsibilities also surfaced as another important component of the study.

Both volunteer and paid leaders are fiduciaries. That is, stewards of the club’s assets, reputation, traditions, and legacy.

Stewardship requires financial systems to operate and manage in a way that is ethical, above board, and generally accepted as a desirable practice in private clubs.

Steward volunteer leaders understand the financial system of the club, particularly so they can provide guidance and communicate with other members. They are also responsible for accentuating the positive attributes of the

Volunteers do not manage and operate the club; paid professionals are selected to do so. Working together is a must if each is to contribute as a fiduciary, a steward, of the club.

Over 200 GMs/COOs explored the roles of volunteer (board and committee) members. Successful actions by boards of directors and committee members also were examined in this study. Communication both with members and with management topped the list. The attraction of new members and the retention of existing members were next on the list. BR

Ronald

F. Cichy, O.M., professor, SeungHyun (James) Kim, associate professor, JaeMin Cha, associate professor, MiRan Kim, assistant professor are faculty members at The School of Hospitality Business at Michigan State University

This study is supported in part by a grant from The Club Foundation

What Makes a Successful Private Club Chief Executive?

THE 12 SECRETS TO SUCCESS …

MIKE LEEMHUIS

Successful private club executives are made not born! It takes years to become a successful executive in what I believe is the most difficult of all of the hospitality disciplines … private, memberowned clubs.

Why are private clubs the most difficult of all hospitality disciplines you may ask? It’s the nature of the “beast.”

It’s the “great news/good news” scenario. The “great” news is that you have members (a captivated audience) and the “good” news is you have members (a captivated audience … but one that can use your facility every day).

Please allow me to elaborate on this fairly controversial statement. The “great” news is that you have members that have a vested interest in their club and use it on a regular basis, provided you continue to give them the best facilities,

Being a LEADER* in private clubs

products and services at all times.

The “good” news is that your member, (invested customer), is using the facility regularly, (sometimes as often as seven days a week), which can be a challenge. One would think the “good” news would really be a “great” thing, but actually it’s what makes being a private club executive the most challenging, a concept that should be discussed in greater depth, in another article, on another day. Stay tuned …

So how do you define success?

What does success look like?

When can you pronounce yourself successful?

When do I get to scream it from the rooftops …?

Good questions, but first things first! Success is not a thing or a destination. Success is not the same for everyone … success is measured differently, depending on whom you ask and who is evaluating.

I believe success is a state-of-mind. It’s a lifetime journey … it’s a feeling that you have achieved (or are achieving) the best you can, at any given time using what resources you have at your disposal. It’s that simple!

So will doing all the things listed below make you successful? I don’t know, but what I do know is that if I have had any success in my private club management life (according to my definition of success ), it’s because I have tried to adhere to these 12 concepts… that I believe make for a successful executive in a private, member-owned club (other hospitality disciplines I believe carryover as well):

Knowing when to be seen. Personal time management at your club is all important!

A sense of humor…the ability to laugh/smile with members and associates, and also at yourself.

An understanding of true quality…in all products and service.

The ability and awareness to manage your club as a business while understanding that in the eyes of your members it’s not.

The ability to surround yourself with quality and qualified staff members, that complement your management style and know more about their specific areas of expertise than you do. You are after all called a general manager for a reason!

Having a great work ethic is very important (actually in our business it’s a must) … but you need to understand the importance of balance in your life. Have your own personal and family SMART goals – health, fitness, family time, fishing, wine, reading, movies, etc.

Ability to see the big picture at all times. Become the club’s historian or “keeper of secrets”, but at the same time be a forward and strategic thinker.

An appreciation for your club’s history and traditions, be it founding members, golf championships or special club events that make your club unique.

Be the expert on all club and people-related matters –more specifically finances, human resources, leadership and governance. Fully understand and engage in understanding why your club exists…for dining, golf, yachting, fitness or tennis.

Understanding the importance of giving back to charity and the association(s) you belong to that have allowed you to achieve what you have in your career.

Be a leader* and all that it encompasses. Fill your career quiver with accomplishment arrows! If you want to be successful, study others that you admire that are successful.

Finally … use common sense. Be decisive (ultimately you are paid to take action and make decisions). Be fair (treat others as you would want to be treated), have a positive attitude (it’s contagious), be confident and finally inspire others around you to reach their personal potential.

Success in life is never guaranteed, but adhering to and working on these concepts should take you a long way toward being the best that you can be.

Finally, in the words of Kiana Tom: “When I meet successful people I ask 100 questions as to what they attribute their success to. It is usually the same: persistence, hard work and hiring good people.” BR

Michael G. Leemhuis is president, Ocean Reef Club, Key Largo, FL. He can be reached via email: mleemhuis@oceanreef.com

Does Your Product or Brand Need to Change?

TED ROBINSON

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”

Peter Drucker

If it looks like a duck…it must be a duck. So, let’s not pretend getting new members is anything but marketing.

Of course, and rightly so, club membership marketing is packaged differently than perfume or football tickets. To be succesful in accomplishing net membership growth we must adapt professional marketing tenets so let’s go straight to Marketing 101 and the four P’s – Product, Place, Price and Promotion.

For now I’ll stay with the first of the four Ps –PRODUCT. This is also where PCA starts any project in keeping with the first of its “keys to a successful club” - Does the Club Have a Vision, Mission and Brand Position Statement?

Phrased differently it asks, “Do you know who you are?” Without a good answer you will be shooting at prospects in the dark – and not hitting very many (See PCA Article – Before You Begin Your Marketing Program,BoardRoom magazine January-February 2012).

How do you find out who you should be and is that the same as who you are? Start with your vision (the end picture) and mission (your purpose) and then your brand position.

Your brand position statement describes your product to the world – it is your elevator speech. It is what you and anyone in the club who is involved in membership marketing must have on the tip of their tongues, and must be second nature and come out naturally.

Your “brand position” or product description must be valid, relevant, engaging, and easy to remember and share. Remember also the “brand” is a commitment – a promise – to deliver the same quality each and every time each and every member and guest comes into your club.

What is your product? That’s needs to be defined. One product is certainly the entire club and all it offers. If your club wasn’t in existence, what product would you create? How do you know? What are you doing to find out? Is it or should it be the same product it was 10 or even five years ago.

If your club stays the same (even spiffing up the décor and other amenities) will it still be here in 10 or 20 years? How many of the following questions (adapted from Mind Tools) have been asked by those who run your club?

• What needs does it satisfy?

• What does the member want from the product?

• What features does it have to meet these needs?

• Are there any features you’ve missed out?

• Are you including costly features that the member won’t actually use?

• How (and possibly where) will the member use it? (Where could refer to reciprocal privileges, take out, off-site catering, travel club, etc.)

• What does it look like? How will members experience it?

• What size(s), color(s), and so on, should it be?

• What is it to be called?

• How is it branded?

• How is it differentiated from your competitors?

The other ‘sub product’ in the face of every membership director is the membership products - the categories, classes, privileges, who’s included, and the costs: initiation, dues, capital, assessments, minimums.

The key question here for membership marketing is:

• What is the most it can cost to provide (what will the market bear?), and still be sold sufficiently profitably

Let’s go back to Peter Drucker’s opening quotation – the entire membership marketing process begins with and depends upon understanding your target market.

Who is the target? What does the target want? How much is the target willing to pay? What turns the target off? All great companies engage in this research…all the time! When was the last time you went a week without being asked “to complete a short survey?”

Get started! BR

Ted Robinson is a partner with Private Club Associates and can be reached at 1-(478) 741 7996 or via email: tcr@privateclubassociates.com

Challenges in Golf Parallel Tennis

JOHN EMBREE

Tennis has faced several challenges in the last few years. After attending a discussion panel comprised of leaders in the golf and club industries recently, I realized our sport is not alone – golf and tennis are in a similar position.

At the CMAA World Conference in San Antonio, Peter Bevacqua, CEO of the PGA of America; Jeff Morgan, CEO of CMAA; Rhett Evans, CEO of Golf Course Superintendents Association of America (GCSAA), and Mike Davis, CEO of the United States Golf Association (USGA) discussed ways to grow the game and overcome the obstacles facing the sport.

Many of the concerns for golf raised during this discussion are strikingly parallel to tennis.

Water availability: A major concern for many golf courses is the lack of water, especially for those in climates west of the Mississippi that are traditionally dry or are experiencing a drought. With pending multiple municipal and government restrictions on water usage, courses are being forced to either close down or adjust their water usage while trying to balance member desires for a well-maintained track. While water shortage is more of a concern for golf than it is for tennis, it does affect those who have clay tennis courts or need water to clean their hard courts.

Increasing value to professionals: Much like the USPTA, the PGA seeks to increase value for its members and make the association an invaluable resource to current and aspiring professionals. Continuing education and increasing employment opportunities are top priorities for both the PGA and USPTA along with modernizing education. General managers are always looking for well-educated golf and tennis professionals, so it is paramount that our associations continue providing that pipeline of qualified candidates to help grow both sports.

This is why the USPTA’s U30 Initiative of creating opportunities through education and leadership to professionals under the age of 30 is so important. USPTA has partnered with professional tennis management programs at Ferris State University, Methodist University and Tyler Junior College to educate and prepare individuals for careers within the tennis industry.

We are also excited about the University of Central Florida and Grand Canyon University with PTM programs coming on stream in the next several months. This will provide students the opportuni-

ty to acquire a college business degree with a specialty in tennis management.

Improving the member experience: Being in the “experience business” means the challenge is the ability to bridge the gap between traditionalists and attracting new players to the game. Many golf superintendents are under pressure to make golf easier for beginners while traditional golfers want the game to be harder by placing more pins in more difficult locations and growing the rough longer.

Similarly, traditional tennis players don’t want shorter sets and different scoring formats that make the game more accessible for new, young and senior players.

Increasing participation: The key is to improve the member experience by serving families, make the sports more enjoyable and convert the beginner and occasional players into traditional players.

The PGA launched junior team golf in 2011 with structured leagues in an easier scramble format to get kids 13 and under involved in the game. Tennis has had junior team tennis for a long time with a similar goal, and the 10 and Under Tennis format of making courts shorter and kid-sizing the game has led to increased participation across the sport. Also, studies show that by introducing a sport at a young age, players tend to stick with it.

Golf and tennis share three main goals for overcoming these challenges: grow the game, increase participation and attract the millennial population to the sport. Clubs need to be more holistic.

While golf is important, it cannot be the singular focus as it was in the past now that members are focused on wellness, fitness, tennis and swimming, etc. Golf can’t be the only amenity anymore and that’s where tennis fits in.

The golf industry is trying to unite and pull resources together to focus on joint initiatives to face these challenges head on much like the USPTA and the tennis industry have worked toward doing the same over the last few years.

Alignment is critical. Both sports need to bridge the gap and all of our associations need to come together to achieve these goals. BR

John Embree is CEO at the United States Professional Tennis Association and can be reached via email: john.embree@uspta.org or 713-978-7782, ext. 117.

Re-Capitalizing Your Club

LARRY HIRSH

In the ever-competitive world of private clubs, often the biggest challenge in “keeping up” is not simply whether or not improvements are essential to the future of the club, but how to pay for them.

Since few clubs have the cash on hand to handle it, they need to consider among several options:

• Assess the membership

• Re-finance with bank debt

• Sell club to a group of members

• Sell the club to a for profit owner.

Ask the following questions by completing a SWOT (strengths, weaknesses, opportunities, threats):

• What improvements are required and how much will they cost?

• How is the club positioned in the market with competitive clubs?

• Should improvements all be done at once or phased?

•Is the club an “owners” club or a “customers” club?

• What will be the impact on the club of the loss of use of facilities?

• Where will the club be positioned after the improvements?

Improvements: Many clubs struggle with two (or more) factions of members. The club’s golfers maintain that it’s the golf course that generates the majority of revenue for the club and that’s often the case.

However, at some clubs there can be an equal or greater number of non-golfers who often have the same voting power as the golfers. Accordingly, there’s a debate over where to spend a typically finite amount of available funds. At many clubs, each member (and often each board member) have personal agendas.

This debate can often be harmful to the club’s culture, fracture friendships and cause membership flight - either to other clubs or to alternative activities. Market positioning: Part of the decision to select and prioritize improvements should come from an objective review of the club’s relative position in the market. Every club has a variety of strengths and weaknesses that make it unique. Accordingly, in order to identify the correct mar-

ket position for any given club, it’s critical to understand not only the club’s characteristics but also those of competing clubs in the marketplace.

Phasing: While each situation is different and the needs vary from club to club, a facilities analysis is critical to objectively and accurately determine a club’s needs and how best to achieve its goals. Phasing improvements can often be a financial vehicle for achieving a club’s improvement goals by identifying those upgrades that will generate members and revenue that will enable the club to economically justify the balance of the master plan.

Do these projects first and phase the balance of improvements as the club’s financial health improves, but be sure to commit to the improvements for the benefit of prospective members.

Owners or customers?: This is quite possibly the most significant question a club needs to both ask and answer. The club’s culture will ultimately determine its appetite for continued improvement. Some clubs (large and small, expensive and not) have the philosophy that cost (and dues) control is of primary importance and will take just about any measure to maintain (or reduce) budgets and limit or avoid dues increases.

I call these types of clubs “customers” clubs, because even if they’re member-owned (and even if the membership is affluent) the membership is ultra-sensitive to dues increases and focuses more on the cost of membership than on the quality of facilities.

Conversely, there are (large and small, expensive and not) clubs that take a different approach, striving to be the best they can be and taking great pride in their clubs and facilities.

These “owners” clubs’ membership supports leadership that takes ownership in the facilities and approves upgrades and enhancements. These clubs (unlike the customer clubs) often think ahead to the next generation of members and to leaving them a better club than they found.

Project impact during construction: One often overlooked element of any club is the impact of renovations and upgrades on the operating cash flow of the club. While the desired end result of any project is usually that cash flow

Green with Envy HOW PREMIER CLUBS REDUCE TURNOVER

Employee turnover is costly. The financial effect of replacing an employee ranges from 30 percent to 50-plus percent of base salary.

The disruptive effect of turnover is equally important and can be measured by: 1) loss of momentum on one of the hospitality teams 2) member disappointment over the loss of a beloved, quality sports professional 3) board of directors’ regret about a gap in the club’s succession plan, and 4) the damaging effect of “churn” among employees. For all these reasons turnover is often a regrettable, but preventable, event.

Premier clubs often make their peers green with envy because they have effectively addressed turnover by adopting this anthem: Retention is King!

General managers at premier clubs believe that hiring the right people is the first important action in retention. It is the best way to reduce employee turnover. Interview and vet candidates carefully; not just to assess technical expertise, but to judge their fit with the club’s culture, colleagues and general manager. Poor fit is the most frequent reason for turnover.

Your assessment of fit can improve by using these proven resources. The Predictive Index (PI), a 10 – 12 minute online tool, provides targeted commentary about “fit” as well as recommendations for how best to manage your candidate.

A second resource is Targeted Selection (TS) offered by Development Dimensions International. Use of TS in 35 organizations reduced turnover by an average of 48 percent. Both PI and TS are worth adding to your selection process because they provide valuable information about fit

Assessment of fit can be further enhanced by 1) using 3 – 5 key responsibilities to evaluate a candidate 2) using multiple interviewers 3) asking follow-up questions after a candidate says, “I am a team player” (an overused statement), and 4) seeking specific examples of what candidates have done in their current job.

Good fit between a candidate’s strengths and the demands of a position is likely to emerge with specific examples. Weaker candi-

dates typically offer vague or general comments when pressed. It is best practice to eliminate these candidates.

Premier clubs focus on three motivational drivers leading to excellent retention: variety, mastery and purpose. Variety means challenging work that makes multiple demands on an employee. At one club the GM assigned the best servers to specific locations in the dining roomtheir territory or mini-restaurant. She used member comments or her observations to measure server effectiveness.

Mastery means using “my work to become the best I can be at my craft.” Club Managers Association of America offers many certifications to enhance mastery. Some general managers offer a financial award or quick promotion for attaining certifications.

Purpose means a guiding direction beyond me; a purpose that is worth achieving. One superintendent invites his top three grounds employees to the Masters to work the event. His invitation tells them they are special and their contributions matter.

Whether we focus on variety, mastery or purpose, the key factor across these motivational drivers is the boss. At premier clubs an effective boss will 1) ensure that compensation and benefits are market-competitive 2) create a positive workplace through awards (financial and nonfinancial), recognition for work well done, and praise for exceeding members’ service expectations, and 3) practice three critical behaviors of listening to employees, understanding and taking action to deliver on their critical needs for success, and 4) communicate frequently to the general manager and the board of directors about the club’s stars – consistently excellent performers with promotional potential.

At one club, the head of tennis and paddle brags (with good reason) that every tennis pro who has worked for him during his 30 years now has the top tennis job at a prestigious club in the US. What a record and what a boss! He willingly recommends his best players to other marquee clubs and facilitates promotion out-

DAVID W. LACEY

side his club. If you are a tennis professional, you want to work for him!

Employee satisfaction and effectiveness are not static; they require vigilance. When you implement these turnover reduction methods, your contemporaries will be “green with envy.”

Football guru, the late Vince Lombardi made this point with his players by saying, “Perfection is not attainable, but if we chase perfection, we will catch excellence.” You, too, can have an excellent team! BR

David W. Lacey is managing director, HR Services, The Hirshorn Company. He recently completed his second board term at the Philadelphia Cricket Club. He can be reached via email: dlacey@hirshorn.com or at (215) 242-8200.

will be enhanced, there is often a disruption that can significantly impact cash flow during construction.

End result - market positioning: Where will the club ultimately be positioned in the market when the project is complete?

Every club has limits. For instance, if a golf course sits on a small site, there’s little or no room for expansion to accommodate modern length and an ample practice facility, it’s unlikely that the club will be able to compete with those clubs recognized as the market leaders, at least in golf.

However, those clubs with limited land resources and infrastructure may be able to add or upgrade other facilities that make it attractive to those not as serious about golf. If members perceive great value, they’ll pay for it as long as there’s good value.

OK, so the club has answered all these questions and now it’s time to make decisions on how to move forward. How do they decide?

In some cases the choice is forced, because the membership is either unwilling or unable to pay the freight. The option of

selling the club to either a group of members or a for-profit operator is the best plan.

At other clubs, it often comes down to a question of control and desire to operate and a willingness to pay the bill, either now (assessment) or later (refinance). There are many clubs where club leadership looks forward to the responsibilities of operating the club and they are reluctant to let go.

The right decision for each club is different. It depends on the following items:

• Makeup of membership

• Stability of membership

• Appetite for assessments or debt

• Amount of investment required

• Existing debt

• Ability of club to self-operate effectively.

Once these questions are objectively and realistically answered, the recapitalization of the club can move forward. BR

Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www.golfprop.com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia. He blogs on variety of club and appraisal issues at http://blog.golfprop.com

Is Sustainability a Trend or a Fad?

This article is about sustainability, but it is not about being green.

This article is about sustainability, but it is not about climate change.

This article is about sustainability, but it is not about local sourcing, LED bulbs, or protecting wetlands and wild life habitats. Nor is it about using fewer pesticides, consuming less water, or having a smaller carbon footprint.

This is about sustainability…the sustainability of a club. In other words, it is about survival. It is also about change, because, as W. Edwards Deming, one of the greatest management gurus ever, so aptly put it, it is not necessary to change. Survival is not mandatory.

While survival means, “to remain or continue in existence or use,” it also means, “to remain healthy, happy…in spite of some occurrence.”

And isn’t the “healthy and happy” part of the definition the important part for any club? If members aren’t happy, your financials won’t be healthy. It is as simple as that. Or is it?

Annually, countless prognosticators make their predictions as to which American brands will go out of business that year. Lists come out from such respected sources as Forbes¸ 24/7

Wall Street, The Fiscal Times, and Business Insiders.

Perhaps not surprisingly, most of these lists are relatively similar. For example, by the end of 2015, these forecasters expect such venerable names as LuLulemon, Aeropostale, Shutterfly, Hillshire, and Zynga to disappear, as we know them today. In deciding which brands are headed towards extinction, these predictors point to five common failings:

• Not understanding what customers really want, so they don’t provide an exciting and valuable experience at each customer touch point. The operative phrase here is each customer touch point. Admired best-practice brands, such as Disney, Amazon and Nordstrom have this nailed. They have identified and mapped every touch point that a customer has with its brand. A touch point is any time a

potential customer or current customer comes in contact with your brand – before, during, or after they purchase something.

For clubs, this includes everything from website design to making a dinner reservation to monthly billing. Identifying all your club’s touch points is the first step toward creating a member journey map and making sure they are happy every step of the way.

• Being slow to innovate in anticipation of changes in consumer lifestyles, competition, and environmental pressure. In general, clubs tend to be more re-actionary than pro-actionary. For instance, most clubs have been relatively slow integrating social media into their marketing strategy as a communication and promotional tool.

With menus, they tended to follow the restaurant industry offering healthy options, gluten free, and reduced portion sizes rather than lead it. Similarly, clubs have lagged behind in recognizing the increasingly multi-generational and multi-cultural population landscape. And they are just beginning to embrace and effectively use new programs to gather and mine valuable member data.

• Pricing blunders that, in many cases, grew out of the recent economic downturn. It is no secret that the recession that began in 2007-08 hit the private club industry pretty hard. The length and breadth of the nation’s economic woes were felt in all 50 states, and, indeed, globally.

But perhaps the biggest hurdle for clubs was overcoming depressed consumer confidence. Joining a club still comes out of the discretionary side of a family’s budget. And while private clubs may be thought to be more appealing to men, women control more of the discretionary income in households. Add to this the downturn in the stock market and housing values, and you had a wary membership, let alone potential member pool.

Multitudes of people dropped their memberships or suspended them for a time to save money. So clubs turned to some pricing tactics such as rewarding members for bringing in new members, discounting initiation fees payable on an installment plan, adding multiple membership categories with reduced rates, even offering complimentary (I

BonnIe J. KnuTSon

hate the word “free” for any business, most of all private clubs.) memberships for a trial period to overcome their financial challenges. And, as we all know, once we give a member something, it is really hard to take it away.

• Outmoded business management models and/or board structure. Deservedly or not, club boards have had the image of being an incestuous “old boys’ network” whose members often nominated their friends to succeed them.

But times have changed, and boards are changing too. With the many challenges facing private clubs, today’s boards are reinventing themselves and recruiting members that have expertise, experience, and backgrounds in specific areas important to the club’s future – marketing, finance, and supply chain management are examples.

And according to a study by Bain Capital, the optimal board size for effective decision making is seven people. Bain also points out that, for every person added beyond seven, decision-making ability decreases by 10 percent. If we follow this logic to its natural conclusion, a 17-member board would have zero decision-making ability. How big is your board?

•Not keeping up with the 24/7 digital, especially mobile, revolution. Clubs did very well with the Baby Boom generation but their numbers are waning. They are struggling with Generation X. So the future of clubs lies with Generation Y, also known as the Millennials. These are the folks born between 1980 and 2000, so they are now predominantly in their 20s and 30s.

The National Club Association says that, on average, new members join private clubs in their 30s. This Millennial generation is projected to have more wealth than any previous group, and they are projected to be bigger spenders on luxury experiences (The operative word here is experiences, not necessarily products or services.) than their predecessors. So they are prime targets for club membership. They also heavily

depend on technology for both information and engagement. In 2014, smartphones and tablets made up 60 percent of total digital media time spent by consumers. This was an increase of 50 percent over 2013 and is expected to continue growing.

Engaged members are not only active members, they generate more nondues revenues and they are more likely to be social media advocates. To reach them, clubs have to ramp up their use of mobile digital communication and their level of engagement with them.

Eric Qualman, author of the groundbreaking book, Socialnomics, predicts that 40 percent of today’s Fortune 500 companies will not exist in 10 years. If this projection is overlaid over the club industry’s 4,400plus private clubs, we all would have a big lump in our throats.

But call me an optimist, because I firmly believe there are great days for the club industry ahead. The landscape will be vastly different, so we have an

opportunity to chart our future by designing innovative ways of thriving not just surviving. The greatest rewards will go to clubs that develop new business models, generate new ideas and find new sources of revenue based on changing technology, demographics, and member values. Dick Brunner, COO-emeritus of The University Club of Michigan State University hit the nail on the head when he muses that clubs have always survived and prospered by catering to the needs, wants and idiosyncrasies of members.

Over time, however, the public sector has encroached on our domain and now covers the needs and most wants of our members. This leaves clubs to cover their idiosyncrasy. BR

Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of Hospitality Business, Broad College of Business, Michigan State University, Dr. Knutson is a member of the Country Club of Lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu

Water A GLIMPSE AT THE FUTURE

By ForreST rIchardSon

Water is the lifeblood of golf. Rarely do we find the golf course where nature delivers the precise amount of rainfall to keep cultivated turf in tip-top shape, and it has become a big talking point in golf. Water conservation makes sense financially and conservation efforts demonstrate goodwill.

Recently department heads and policy makers from 19 western states met at Western Governors’ Association Drought Forum, aimed at recreation sectors, including white-water rafting, the ski industry, resorts and parks and recreation. My view is that the next few years will define major changes in the West and lead to changes nationwide and beyond.

What changes taking place will affect golf?

1. Conservation: Call it what you want, but the outcome remains the same: Less consumption. Government policy is headed in restricting water use by the recreation sector. New restrictions are being placed on groundwater pumping in some states. Reduction that is planned by golf courses will be far more comfortable than forced reduction. Turf reduction that is well thought out is not only a path to less water use, but it can (a) reduce electricity cost (b) allow transfer of maintenance effort to areas of a course that are far more appreciated, and (c) lessen the eventual capital replacement cost for what would have been a larger irrigation system.

2. Re-use: One of the buzzwords you will be hearing more is “toilet-to-tap”, more aggressive re-use treatment systems and plants. While the old technology of treating water and making it available for golf and other turf uses is still viable, toilet-to-tap allows direct use for potable (drinking) water immediately after it leaves the plant. There may be, in some areas, more water allocated for golf, and older plants producing effluent water that is not suitable for tap use may free up production for golf and recreation.

3. Desalination: The theory among the scientific community is that desalination will eventually become “the way” to bring fresh water to areas that are in need. I think

it will be a decade before golf is a candidate, but this could change when the next great desalination invention comes out on the market. (Cloud seeding is also back on the forefront as a technology that is getting more attention.)

4. Importation: Moving water from one place to another is fast becoming a major push on the government level. This is easier in large states where water rich regions exist adjacent to those with less water. While costly, moving water within a state is much less political than, for example, Colorado obtaining water from Kansas. Rules and regulations prohibiting water transfers are likely to become relaxed if the outcome makes more water available and serves the public good.

5. Stop growth: This appears to be the least palatable of the initiatives. There was a clear message that abruptly stopping growth is not only financially unacceptable, and is not embraced by the highest levels of either political party.

TALKING POINTS

What is the strongest message golf can communicate? Talking points are the common language of government officials. Here are some for the golf industry, positioning golf as helpful to the overall situation with water use and availability.

Nearly every innovation in modern irrigation technology can trace its roots to golf. The very first “computer” to control and monitor irrigation was installed on a golf course. That was a decade before the first Apple computer, in the mid-1970s. Advanced nozzle technology, weather stations, soil sensors, and pin-point control are all hallmarks that have come from their first use on a golf course.

Golf is a relatively small user of water. Every day in the U.S. more than 400 billion gallons of water are used. Golf, by contrast, uses just .05 percent of total U.S. water use. Golf’s use is significant, but so are the ‘open spaces value’ that golf provides.

Speaking of open space value, we need to get better at addressing this important aspect of golf. The largest col-

Sound governance The Key To Successful club operations

“Why can’t our club operate like a business?”

This common boardroom complaint is often heard at clubs struggling for financial security, beset by boardroom dysfunction or lacking clear direction.

The unspoken plea behind the grumbling is for club operations and governance to take on the characteristics of a for-profit business, similar to the ones many board members run in their day jobs. Most of those successful businesses share qualities many clubs lack: clarity of purpose and mission, a strategic vision for longterm growth, customer-focused service levels and data-driven deployment of resources.

ClubCorp is an excellent model from which to learn. Now in its fifth decade of club ownership, ClubCorp (now owned by KSL Capital Partners) currently operates more than 150 clubs. The Dallas-based company continues to write the book on running its clubs as real businesses.

No one is confused at ClubCorp. The mission is clear in every SEC public filing: maximize profit to benefit shareholders. This purpose is achieved through consistent service and member engagement, which makes the club highly relevant in the lives of members.

“All of our clubs make money, and the average EBITDA yield on revenue is 29 percent in our golf and country clubs,” said Eric Affeldt, ClubCorp president and CEO.

Experience shows that changing the operational culture of a club to better resemble a private sector business can be a demanding undertaking. But it is well worth the effort. If you want your club to begin operating more like a successful business, here are three things to do.

1. Simplify strategic goals and objectives: The National Golf Foundation found in a 2014 poll that roughly 70 percent of financially healthy clubs have developed a strategic plan while only 50 percent of clubs that are financially at-risk have a plan. But here’s the really telling

statistic: most clubs fail to routinely put strategy to work. Instead, they become distracted with boardroom politics, non-strategic personal agenda matters and tactical concerns that should be assigned to management.

Clubs should focus on a limited number of strategic goals:

• Increase membership count and dues revenue. It is a pretty simple approach to increase top-line revenue from dues. However, most clubs are not succeeding in membership growth because of inexperienced leadership that is easily distracted by non-strategic priorities. Instead leaders should do their homework to better understand their markets and align their marketing, programs and services with market demand.

• Increase member satisfaction. Member satisfaction metrics are the canary in the mineshaft. Track member satisfaction through activity-specific polls to confirm that programs matter to members. These polls provide confirmation that is usually only anecdotal – good and bad – in most boardrooms. Track and measure member participation rates to ensure that sports and social programs are achieving reasonable participation rates. Make sure your members understand that their satisfaction is the club’s primary goal.

• Understand and serve the expectations and needs of your club’s women. There are many segments and sub-sets to understand and serve, but none more important than women. Women have changed private clubs through greater emphasis on wellness, fitness programs and dining. If you want to align your club to better serve women, convene advisory groups and understand their priorities.

• Accelerate environmental stewardship. Virtually every jurisdiction now carefully monitors water-taking, use and consumption metrics. Next will be more assertive adminis-

henry delozIer

trative vigilance of chemicals and pesticides. Club leaders must be ahead of the trend to ensure the club has a conservative environmental plan in place. Programs available through Audubon International, for example, are just one way to make your club a leading environmental steward.

• Explore new sources of revenue. Most clubs own extra land that can be developed to host outdoor events or repurposed for new activities. When the strategy calls for increased financial resources, clubs find elasticity and new possibilities for funding deferred capital improvements and new member-friendly facilities.

2. Focus leadership and management on superior results: Many clubs are populated with people who have highly successful track records in business and industry. However, few of these same people are effective club leaders because they allow themselves to be distracted by club politics and a desire for popularity within the club.

The result is that many members seem more interested in advancing personal agendas than the long-range vitality of the club. Begin every board meeting with the simple reminder that the duty of the board is to see to the economic sustainability of the club. This reminder brings the strategic goals and objectives into focus.

Committees often lead club leaders and managers off course. Remember, committees speak to the board and not for the board. Each committee chair should be fully indoctrinated and dedicated to the key goals and objectives of the club board.

Stephen Johnston, the founder and principal at Global Golf Advisors, makes this point very clear: “When committees are allowed to become individual fiefdoms, the club board fails in its fiduciary duties and places the entire club at risk.”

Align people, systems and processes to exceeding goals: Great club leaders align resources toward primary goals and objectives. As Jack Welch, the retired chairman and

from Course Design | 52

lections of wetlands in the world – not cared for by public funds – is wholly contained on golf course land. A majority of golf courses serve as drainage fields for communities, filtering runoff from roads and rooftops before it gets returned downstream.

Many courses are in flood plains and serve to slow and detain water as part of flood control. All golf courses are open space that promote recreation. Nearly 40 percent of most courses are naturalized land, wetlands, forested or undisturbed, representing a total land area the size of Yosemite National Park – about 800,000 acres.

CEO of General Electric, said: “Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”

Many clubs lack adequate technology and systems to support their objectives. Today’s members expect that their club is capable of operating with the same efficiency as other businesses. They expect they will be recognized and treated the same as a valued customer – without the necessity to present a membership card or give their name. If you want your club to operate like a business, see that current business tools are available.

What are the differences between the management practices of ClubCorp and your club? The comparison is apples and oranges in many respects. But in one critical measure, all clubs are comparable to even the largest and most successful ownership groups like ClubCorp: focus.

Do you think that a ClubCorp board meeting begins with someone telling a story reported by a fellow member who had an unsatisfactory cheeseburger? Do you think that the board spends any time discussing cheeseburgers?

Great board governance keeps management focus as an unwavering priority. If you are a club leader, you can begin to establish and maintain the sort of focus that ClubCorp brings to the goal of operating clubs for profit.

One of the most business-like actions for club leaders today is to commit to constant improvement in matters of governance and strategic focus. The practice of sound governance is the single most controllable factor accessible for private club boards.

Your club may not post such remarkable results as ClubCorp. It can, however, improve its performance results through better governance, systems and practices that help it operate more like a business. BR

Henry DeLozier, a recipient of the BoardRoom magazine Lifetime Achievement award for 2014, is a principal of Global Golf Advisors. You can contact him at hdelozier@globalgolfadvisors.com.

There is a difference between using and borrowing. A majority of the water delivered for golf is returned to the ground where it makes its way downstream or is extracted for use by others. Not only does golf do its part to conserve, innovate and provide the tranquility of open space, it does so under this ‘borrow’ system. BR

Forrest Richardson, ASGCA, is a golf course architect with offices in Phoenix, and Los Angeles. He has completed numerous projects, including turf reduction undertakings, for clients across public and private sectors. He is the author of five books on golf design including Bunkers, Pits & Other Hazards and Routing the Golf Course. Forrest can be reached at forrest@golfgroupltd.com and http://www.golfgroupltd.com.

BoardRoom magazine Recognizes 22 Private Club Presidents of the Year

By Dave White, Editor, BoardRoom magazine

BoardRoom magazine annually recognizes the world’s top private club presidents, captains and chairs as Private Club Presidents of the Year, for their outstanding work, their understanding of the industry, and role and responsibilities of the club’s board of directors. In this continuing series, BoardRoom introduces four of the top 22 presidents for 2014.

Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions.

This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world.

These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working, effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work.

Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan.

A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members.

Congratulations to these outstanding private club board presidents.

Five club president profiles on page 58 and 59

Sponsored by

DOUG MAIR, PRESIDENT | THE GLENCOE CLUB | CALGARY, ALBERTA, CANADA

JOANNE HRUSKA, PRESIDENT | THE GLENCOE GOLF AND COUNTRY CLUB | CALGARY, ALBERTA, CANADA

The calgary glencoe club, one of canada’s premier sports and social clubs, and the glencoe golf and country club have the distinction of two presidents being recognized as Boardroom top presidents for 2014.

The glencoe club is an anomaly in the private club industry. It’s a non-equity member owned club, and the glencoe golf and country club is a wholly owned subsidiary of The glencoe club. The glencoe club shareholders elect one board of directors, and the same members are appointed to the board of the glencoe golf and country club. The board appoints a president and vice president for each club from the elected board members. established in 1931 the glencoe clubhas approximately 4,600 shareholders and 12,000 members. The club enjoys a long wait list to become a member.

The glencoe golf and country clubis alberta’s premier, private family golf club. located 20 minutes west of calgary the club offers its 2,700 members 45 holes of golf, extensive practice facilities and programing for all ages.

calgary experienced an epic flood in the summer 2013. Both clubs were completely shut down and inoperable. yet the glencoe club opened its doors and heart to anyone in the whole community in need of a hot shower or a complimentary meal. Through an extraordinary effort, the lower floors were dried out and kitchens and other services restored. Management, staff, and board members demonstrated a respectful, humble spirit of community and humanity in the face of a true crisis.

PRESIDENT DOUG MAIR – THE GLENCOE CLUB

doug played a key role in a management restructuring and realignment at the glencoe club. Working with the ceo greg lundmark, who oversees both The glencoe club and The glencoe golf and country club, doug played a key role in the hiring of a new glencoe club general manager and also contributed to a new corporate structure creating efficiencies and a renewed vibrancy in the operation.

as the board’s leader, doug also was instrumental in bringing board members together as a functional cohesive team, moving to a focus on true governance and away from operations. his work was essential in bringing the board and management together as a very cohesive and effective team working towards the same goals.

The glencoe club is extremely popular as evidenced by its large membership and long waiting list. virtually every segment of the club is being highly used, putting significant pressure on our infrastructure. In 2013 the board made a decision to seek a strong mandate for a $23 million expansion project, based on the premise that to not innovate and upgrade was to fall backward.

The result was the largest and most successful vote in the club’s history with 64 percent of the eligible members voting, and an 86 percent approval rating. The membership felt empowered and excited about the changes. construction started during Mair’s term as president and will be completed in 2016.

during his tenure the club accepted a new software program to manage virtually all aspects of the operation of the two clubs.  “This step was long overdue,” explained ceo greg lundmark. “It is extensive and expensive and will transform the security and efficiency of our whole platform.

Mair has been a long-standing member of both clubs.

JOANNE HRUSKA – THE GLENCOE GOLF AND COUNTRY CLUB

The club’s championship golf course –The Forest – had been closed since 2010 for a complete renovation and ready to open in June 2013. nine days before the grand opening the 2013 flood devastated the golf course – 43 of the 45 holes were damaged, as were the practice facility, numerous buildings, bridges and equipment. damages rose to over $5 million, with the Forest course the hardest hit.

Joanne came on as president a few months later with the challenge of getting the club fully repaired and open after the flood. So she had one simple goal: to make 2014 the most positive year possible from a member and management point of view. She was instrumental in supporting the flood mitigation efforts and in developing a very positive relationship and trust with management and the membership.

Finally after four years of being closed, in august 2014, Joanne as president cut the ribbon opening the newly designed championship Forest course.

With a background in finances, Joanne has provided key guidance on controlling club expenditures to ensure that money spent is necessary and is in the best interest of the member-

DOUG MAIR, PRESIDENTJOANNE HRUSKA, PRESIDENT

DARRELL ELFELDT, PRESIDENT | DESERT HIGHLANDS GOLF CLUB ASSOCIATION | NORTH SCOTTSDALE, AZ

JUDGE

DARCY GOODMAN, PRESIDENT | DESERT HIGHLANDS GOLF CLUB ASSOCIATION | NORTH SCOTTSDALE, AZ

desert highlands golf club association a private gated golf and tennis community in north Scottsdale, arizona has the distinction of having two club presidents ranked among Boardroom magazine’s top presidents for 2014.

darrell elfeldt served as the club’s president from May 2013 through april 2014 followed by Judge darcy goodman, as board president from May 2014 to the present.

“I’ve been extremely fortunate to work with many talented and successful individuals who have given their time and energy to serve as board members.

“darrell elfeldt and Judge darcy goodman stand out as two of the most dedicated individuals I have had the pleasure of serving,” explained Terra S. h. Waldron, vice president/chief operating officer, The desert highlands association.

desert highlands golf club association has been a Boardroom distinguished emerald club since 2012.

during his four-year tenure, president elfeldt was responsible for a plethora of changes, including a $4 million clubhouse restoration. he stood by and was committed to the desert highlands’ strategic plan.

president elfeldt worked closely with Waldron to ensure completion of the board policy manual aimed at the success and management of desert highlands. he believes in the board governance policy and the strict adherence of those principles so that the board and management team could work collaboratively allowing management to perform its duties and responsibilities effectively.

elfeldt, a desert highlands member since 1998, happened to be one of the first elected to the board through the nominating

ship…working to ensure that the club is financially efficient without compromising member’s needs.

She also played a key role in developing a very productive and effective relationship with management, the board and the membership. This was essential during the aftermath of the flood crisis by getting everyone working together to get the club open and operational, as well as rebuilding the Forest course.

committee process. elfeldt grew up in oregon and graduated from the college of oregon. a certified public accountant, he moved to chicago and began a long career with Boise cascade office product corporation.

Judge darcy goodman brings “a very new style of leadership to the board,” asserts Waldron. “It’s one which depicts ‘action’ based on the accumulation of facts and information.”

Because of her immense background and experience in public service, Judge goodman understands how emotions can play a role in member’s request for changes to policies and capital improvements preferences. her focus is on the club’s strategic plan and initiatives, a platform for making decisions for the good of the entire membership and the future of this club.

“Judge goodman is highly admired. She is patient and kind and does not allow the emotions of others to cloud her decisions that are vital to the operation,” commented Waldron.

one of her first orders of business involved work on a daunting project – a sub-division within desert highlands that needed new roads…brick paved roads that is! The project was further complicated by the city’s need to replace main water lines beneath the streets.

Judge goodman worked in collaboration on this project with desert highlands’ management, city of Scottsdale and multiple construction contractors to achieve the desired outcome.

“The result has been astonishing,” enthused Waldron. Judge goodman ensured that sleeves were installed under the roads to service future natural gas services for remodeling projects and new construction.

“This has demonstrated her foresight and ability to take on a project, no matter the size or its complications.”

Judge goodman also is credited for expanding the ‘associate’ policy to include a family member or child living with a surviving member so that they are recognized as an associate member and provided member privileges.

Judge darcy goodman, a desert highland member since 2002, spent over 30 years devoted to public service. She became the assistant city attorney for the city of Seattle and was named one of the top rated judges each term of her tenure. BR

She has been a member of the glencoe club for 30 years, initially as a competitive figure skater. after completing her finance degree, she took work in a private club pro shop, “and although I had never played golf before, I was hooked after two weeks,” she said. hruska borrowed the money to go on the glencoe golf and country club’s wait list…and after a wait of 11 years finally got her membership. BR

DARRELL ELFELDT, PRESIDENTDARCY GOODMAN, PRESIDENT

audit UNDERSTAND HOW LAWYER LETTERS WORK

By If you are an entity whose financial statements are audited – regardless of whether you are a member-owned club or a business entity that owns a club – you might want to understand how the lawyer letter to the auditor works.

There are written standards that govern the auditing CPA firm and another set that govern the lawyer responding. If you don’t understand how this works, a big legal invoice might surprise you!

We respond to these audit letters very regularly, and I’ve been surprised lately to learn that most clients, and even many auditors, do not understand how the law firm processes these requests or what issues might arise during the review process. So this describes the process from the lawyer side, and gives you a few tips to avoid a surprising response or surprising invoice from the law firm.

As part of their audit procedures, the auditor will ask the club which law firms have provided services during the year under audit. They will ask you to send a letter (the “Request”) to the law firm (probably written by the audit firm) asking the law firm to confirm there is no pending or threatened or unasserted claim that “may call for financial statement disclosure.”

The letter usually says something like this: “Please furnish to our auditors details relating to all pending or threatened litigation, claims or assessments your firm is handling” for the client. It will also ask the lawyer to comment on any “unasserted claims and assessments considered to be probable of assertion that if asserted would have at least a reasonable possibility of an unfavorable outcome.”

If you know any lawyers, these quotes and questions are full of words, each of which requires a lengthy definition! When you read the lawyer response letter, the vast majority of the letter (it seems to me) is describing what the lawyer does not have to answer (a bit like “pleading the Fifth” maybe).

The American Bar Association (“ABA”) issued a paper titled “ABA Statement of Policy Regarding Lawyers’ Responses to Auditors’

Requests for Information” and then issued a “commentary” to go with it.

This gives guidance to lawyers when they respond in order to preserve the legal privilege of attorney-client communications and protect a client’s confidential information. It tells the lawyers what they must and must not disclose.

Lawyers are also very are concerned about client confidentiality. Just knowing something about the client does not mean that the client has authorized the lawyer’s disclosure to the auditor. The client has only approved the disclosure of information that meets the exact questions asked in the request. However, in general, upon receipt of the request letter, the lawyer must disclose some information about pending or threatened litigation that they are handling for the client.

So what happens when the law firm receives the Request? The exact process depends on the size of the firm, but it is essentially this. Every lawyer who has done any work for the client is asked if they have any information that needs to be disclosed. If no one has disclosure information, then a fairly standard letter is prepared. This process can be rather inexpensive.

If any lawyer has something to disclose, or is concerned about whether or not something must or should be disclosed, then a process begins to evaluate that information to determine what must be disclosed under the ABA Policy, whether to consult with the client about disclosure, and similar steps.

So, what can the client do to make this process go better or worse? If the client believes there is nothing for the lawyer to disclose, then it is fine to just mail the letter. However, it does not hurt - and may actually help - to send a quick email or call saying the request is coming and that you don’t know of anything that the lawyer needs to disclose.

Here’s why: lawyers receive letters where the client says in the actual request letter that they have advised the auditor that we DO have information to disclose, rather than we DO NOT have information to disclose. We don’t know why this happens, but it is more often than you might think.

roByn SToWell

How could this happen? For example, I might do some work for a club and become aware of – or even help with - some issues with a disgruntled member or a dispute with a vendor over a payment amount. As the facts developed it might seem the issues were about to be resolved or that the strategy is to ignore the complainer and see if the problem goes away.

Between 2008 through 2012, for example, I worked with a lot of clubs to address many issues with disgruntled members, vendors, lenders and others. Perhaps time passed without my hearing more on the issue. Then, I receive the Request that says I DO have something to disclose. Perhaps one of these issues turned into something bigger.

I ask the client for more information and for a status update on the matters that I think are in question so I can respond to the request. The client, who thinks they told me that I DO NOT have anything to disclose, might send me a bunch of emails and documents thinking I need them to “close the file” or “issue the clean letter.”

Instead, I look at the new information, which perhaps appears to say one of the disputes is ongoing and perhaps more overt threats have recently been made. I pull out my notes and information, refresh my recollection, consider what does or does not need to be disclosed, and possibly write a letter to the client discussing the disclosure issues. I am doing what the client asked me to do in the letter – evaluating what needs to be disclosed to the auditor. If there was nothing to disclose before, this new exchange of information may now give rise to my actually having something to disclose – the more recent threats of escalation – that I previously was not engaged to address.

This can all be avoided if the client does a few things:

• First, read the letter carefully before you send it.

• Second, simply call the lawyer to say “the letter is coming and as far as I know there is nothing to disclose, but let’s discuss it right away if you think differently.”

Then you both have the same expectation and can immediately discuss any issues.

Now, what if there really are disclosure issues? You should absolutely pick up the phone and call the lawyer! Here is what the lawyer will do:

• The original inquiry to lawyers in the firm will confirm that there is ongoing litigation, or that the club received a demand letter for a significant amount of money, or that the board is aware that something bad happened but it has not entirely come to light yet.

• In each case, the lawyers need to address what they have actually been hired to do and the opinions they have formed in that regard.

• The lawyers’ disclosure will be governed by the ABA Statement, and there will be a lot of lawyer words around anything that is ultimately disclosed, but you want to be in communication with the lawyer about what information will and must be disclosed. BR

Robyn Nordin Stowell is a partner in the law firm Stinson Leonard Street, Phoenix, Arizona. Robyn can be reached at (602) 2128682 or cell at (602) 300-5326 by e-mail at robyn.stowell@stinsonleonard.com or robyn@robynstowell.com.

Sustainabilty ONE CERTIFICATION AT A TIME

SpecIal To BoardrooM MagazIne

It’s been an interesting path toward sustainability for Broken Sound Club in Boca Raton, Florida.

“What began as a small step with the introduction of biodegradable cups and recycling and the skepticism of many members has now led to golf course vegetation composting and Golf Environmental Organizations certification (GEO) in 2011 and our most recent LEED certification” explained general manager John Crean.

The most recent is the LEED certification of the 33,000 square foot Moonstone Spa and Fitness Center at Broken Sound. This demonstrates the continued passion and commitment of the members, the club leadership and general manager Crean.

LEED certification happens by meeting the United States Green Building Council’s (USGBC) requirements.

Although more and more clubs are on a path to sustainability, Broken Sound Club is one Florida club that dedicates its resources toward sustainability in a meaningful way, and has made this goal a priority.

Over seven years ago Broken Sound Club launched a club-wide master planning effort with the architectural firm of Peacock + Lewis of North Palm Beach, Florida. As a part of the planning process the Moonstone Spa and Fitness was chosen to be the test case for USGBC LEED certification.

Jon Olson, LEED AP architect with P+L put the team together that would ultimately secure the design and implementation of the sustainable project, and the Weitz Company, contractors in West Palm Beach, Florida was chosen to assist in building the project, consulting with RGD Engineers and the Spinnaker Group.

As with any project, seeking LEED certification, Peacock+Lewis and the team provided vast amounts of data for mechanical and electrical system designs, energy modeling and the programmatic use of the spaces.

Site design for reclaimed water and xeriscaping are also very important to the project’s success. Environmental groups and the state of Florida are also mandating that we use less of our natural resources by using reclaimed water.

Broken sound has been instrumental in working with the City of Boca Raton to obtain reclaimed water for both of its golf courses.

“At the base of this effort,” Crean added, “is the underlying impact of saving money through thoughtful design but also saving in a way that makes our members proud of their club.”

UPCOMING PROJECTS

Next up on the drawing boards for Broken Sound is the concept of a solar array for the parking lot that integrates the carport structural canopies with the latest in photovoltaic solar panels. Flexible film collectors will be used to create a signature design for the club while harvesting the sun’s energy. Preliminary estimates forecast that the financial investment payback would occur in as little as three and a half years.

“There’s no questions, the direct benefit of these energy saving initiatives is reduced member dues over the medium to long term, and becoming more self-sustaining…one certification at a time,” Crean enthused. BR

Solar pix

courtesy of Konarka

hiring a recruiter What Should you ask Before Signing

For both clubs and candidates seeking to use a staffing partner to find the perfect match, there are questions that should be asked of the recruiter before hiring them.

The job market is abundant with talent these days, so hiring a quality recruiter for your club has become more important than ever. The professional recruiter can bring extensive value to the process of the search, from saving time to quality of the right match candidates.

But how do you know if the recruiter you’re interviewing has the best qualities to give you the advantage over your competition?

There are five questions you should ask:

1) Their process: A good recruiter should be able to walk you through their entire process from taking the job order through hiring and placement. Assurance for both the club and the candidate in achieving a perfect match requires the recruiter to ask detailed questions of both the club and the candidates early in the process.

The best recruiters are motivated by the challenges of recruiting itself. Money is an important factor for good recruiters, but the very best are those who love finding good professionals for open positions and make the process of recruiting and placement their career, not just a job. The best recruiters also love making good matches between good candidates and good clubs.

Often the recruiter spends little time in understanding the club but instead focuses more on determining what qualifications the candidates bring to the table. Two important questions to ask the recruiter: are the candidates considered

because of the club’s specific needs and do the candidates know all they should about the club before accepting the position?

2. Attention to metrics: The best recruiters understand good recruiting metrics (quantitative measurements of performance), and can achieve metric goals. All recruiting firms should have some type of metrics they follow. The question is: are the metrics in line with all parties. These can include the number of placements made, the time to complete the placement from start to finish, knowledge of the position or experience in the position being recruited; representation of each candidate considered, representation of the client club, and turnover in positions for which the recruiter has hired.

Find out what metrics the recruiter was measured by in their previous work, and how they performed. If a candidate did not meet the goals during the process, ask why. If you represent the club look for a recruiter who understands and has experience with the kinds of metric goals your club will be using to measure the success in performance of the chosen candidate.

If you are a candidate seeking the recruiter’s assistance then make sure the recruiter is willing to represent you and what you bring to the table, i.e. qualifications and experience.

3) Sourcing experience: Where does the recruiter usually find their candidates – single sourcing channel or does a wide range of sourcing channels such as a network and multiple job boards?

For job seekers, does the recruiter represent outstanding candidates, who are positioned to meet the time commitments, ethical commitments, financial commitment, etc?

The best recruiters will not just represent a Rolodex of contacts who they can tap to find your club a pool of candidates, but they also have the means to find new potential candidates. You want the recruiter who can think

donna coyne

creatively in how to attract new talented candidates who are seeking an opportunity.

Simply ask, “Where do you get your candidates?” If a recruiter can’t give you a direct, clear answer, defining multiple avenues in which to represent the club then look out. In today’s job market good candidates extend out from the “good old boys’ club.”

A good recruiter will be able to reel off the sourcing techniques that have brought them the most success. Find a recruiter who has experience sourcing multiple channels that are basically new to your existing opportunities.

4) Industry experience: It’s key to learn what kinds of candidates the recruiter has experience hiring. Make sure they have experience hiring the kinds of candidates your club needs. For example, if your club or experience is with a small startup, but a recruiter has experience only with big clubs, you should consider that before moving forward with the recruiter.

The same is true if you’re looking for a recruiter to assist with presenting you to the club, rather than just forwarding your resume with a selective group of others. Hold the recruiter accountable for representing you or the club to the fullest. A good placement does not necessarily come quickly just because of a network of qualified candidates or because the job market is flooded with people who are looking. A good recruiting process is based on thorough

due diligence of both client and candidates, strong honest representation of both club and candidates and consistent follow through during the entire process.

5) What motivates the recruiter: The best recruiters are motivated by the challenges of recruiting itself. Money is an important factor for good recruiters, but the very best are those who love finding good professionals for open positions and make the process of recruiting and placement their career, not just a job. The best recruiters also love making good matches between good candidates and good clubs.

They get a charge out of getting to know professional people, growing their network of professionals and in the end developing a win-win situation for all involved.

The best recruiters are those who can make the difficult hiring go seamlessly for the club and the candidate. With a well filled job market of candidates and many club opportunities open, do the due diligence on the recruiter options in the industry and chose the one who best fits your situation.

As a club or a candidate seeking assistance in finding the best fit, ask the five questions first and then chose, don’t just go with anyone!!! BR

Donna Coyne is CEO/placement specialist with Professional Club Placement Services. She can be reached at (760) 851-5339 or www.pcps4u.com

Battle Burnout

ADDRESS THE SIX MOTIVATORS FOR ENJOYING WORK

By erIcK lauBer

Gloria wasn’t happy at work. It wasn’t that she hated her job or anything like that. Her co-workers were fine and she didn’t mind her type of work. In fact, she thought she did it pretty well.

Of course, she wanted more money, but who didn’t? No, something else was bothering her. At some basic level she simply didn’t enjoy coming to work. Whatever excitement or sense of accomplishment she used to get had been replaced by a lack of motivation.

Gloria’s issue is a common one. Employees around the world sometimes lose sight of what makes their work worthwhile. They get run-down, burnt out and not motivated. At times like this, it can be difficult for anyone to enjoy work and find the old levels of motivation and energy.

Seeking a personal sense of accomplishment is natural and can be harnessed everyday by millions of workers and employers. It can be described as “taking pride in one’s work” or a sense that “this is what I was meant to do.” Making progress toward a goal makes all of us feel good.

To help Gloria and the millions like her, it is necessary to look at the underlying causes. Why do any of us enjoy work? And can we re-ignite those causes in our own work environment? The answer is yes, and there are at least six different reasons why we enjoy work, ignoring money, of course.

Inner accomplishment: The remarkable time and energy some people put in to their work can only be understood as an “inner

drive” – they simply want to achieve that goal. Seeking a personal sense of accomplishment is natural and can be harnessed everyday by millions of workers and employers. It can be described as “taking pride in one’s work” or a sense that “this is what I was meant to do.” Making progress toward a goal makes all of us feel good.

The greater good: Many of us are also motivated by a sense of community…the feeling that we are part of something larger, and that life isn’t just about our own individual needs and wants. Millions experience this particular joy and peace as they volunteer for church or service club tasks. It can also be encouraged in the workplace.

Personal relationships: Many get enjoyment from the individual relationships they experience at work. It helps them look forward to each day. The laughter, the camaraderie, the forgiveness and even the occasional stress are all something they enjoy and know they wouldn’t want to live without.

But not everyone is the same, and certainly we’re not all our best selves every single day. Enlightened managers respect this basic human need to connect with others and allow it, if not encourage it, in their workplace.

Sense of team: Similarly, some people enjoy a special sense of completeness and wholeness by experiencing team. In the workplace, many employers work hard to encourage this shared identity by conducting internal PR and messaging campaigns. For quieter teammates, a sense of camaraderie might provide an extremely important opportunity to connect and feel like they belong.

Physical exertion: For some, a special sense of joy comes from physical exertion, and the

So, what can be done more generally to help employees enjoy their work? Or what can any employee do themselves? The answer is simple: treat the cause, not the symptoms. Instead of worrying about symptoms like aggressive behavior or poor attitude...why not ask, “Is this job challenging enough?” or “Would you like the opportunity to be more creative?”

absence of it makes any job less appealing. It just doesn’t feel like work if they aren’t breaking a sweat or doing battle with the weather. This is partly a product of socialization and might be tied up with what “work” means to them.

Modern day psychology re-affirms the benefits from physical labor. We all know how endorphins can give us a slight high. And everyone knows about the stress-management benefits from working out?

Mental challenges: Finally, a great many of us enjoy the special mental feeling that comes from exercising our creativity or satisfying our curiosity. The small euphoria that comes from developing something new or conquering a complex problem can be for a big part of enjoying work for some.

“Why” is the answer to “how.” So, what can be done more generally to help employees enjoy their work? Or what can any employee do themselves? The answer is simple: treat the cause, not the symptoms.

Instead of worrying about symptoms like aggressive behavior or poor attitude, employees and employers can create a more enjoyable work environment by directly addressing one or more of these common denominators.

Why not ask, “Is this job challenging enough?” or “Would you like the opportunity to be more creative?”

Stepping back and reflecting on each of these six motivators can guide any manager or employee toward a more enjoyable work place. There is hope for Gloria and other employees in the application of modern day psychology to the workplace. BR

Erick Lauber, Ph.D., is an applied psychologist and faculty at Indiana University of Pennsylvania. He speaks and consults on leadership, personal growth and development, and taking charge of our own life stories. His video log is located at www.LifeFraming.org. Contact: www.ErickLauber.com or call (724) 464-7460.

For Tough relationships There are Solutions

“No, actually I won’t be attending conference this year,” answered Chris, in his sixth year as club GM, responding to a simple question from a fellow manager.

“My new president feels that the money can be better spent elsewhere. As a matter of fact, he told me he wanted an office in the clubhouse with his own phone extension. He wants business cards. I wasn’t sure that he was serious and I didn’t order the cards. He came in the other day and was livid that he had no cards. I’m not sure what I can do about the office, I just don’t have any space.”

It turns out that more managers have faced this situation than we might have thought. Managers and presidents experience disconnections all the time across the country. While at CMAA’s recent conference, I talked with almost every manager I encountered about this issue, and every time, before I was even finished with this tale of woe, my listeners were smiling, nodding, and ready to jump in with their own version.

So, what’s the solution? A place to start is finding out why the president is so focused. Sometimes, the president has a very strong personality and is trying to correct perceived shortcomings by circumventing the appropriate leadership chain.

Often it’s a simple matter of misinformation or understanding. However, if there are deficiencies in the GM’s performance and the president is filling the gap, then the GM must look to correct the problem immediately or be prepared to move on.

Charles Bernold, a 26-year manager at Bel Air Country Club of Los Angeles, has several suggestions. “It has happened to me twice. I

played along with the president both times. The staff hated it and made sure that the entire membership knew about it, I didn’t have to be openly involved. Sad, for sure, but one thing above all… Don’t quit! Ride it out and do your own thing and don’t tell him off! He is digging his own grave.”

As tempting as it is to take on the president, it’s a high-risk proposition and unnecessary. The other directors, with whom you have good relationships, will watch closely. If you disrespect the president, who is their peer, they will no longer support you.

It goes back to the issue of group dynamics. As staff, we are not within the same social group as the directors and group allegiance is very strong. Managers should look to get support of the other directors in an effort to align all leadership with the club’s mission and vision.

Linda Carroll, who spent over 25 years at White Bear Yacht Club, Dellwood, MN until her recent retirement, had the following suggestion for when you find yourself in this kind of situation.

“Let the staff know what is going on. Tell them how you plan to work with the president. Be ready to run interference if needed to protect your staff.”

Linda emphasizes that the staff should understand that they are to follow directions, up to a point. When the board member’s instructions start to come into conflict with the club’s larger vision, the staff should let the manager handle that situation.

“When you have someone who is really micromanaging to the point where it’s disruptive, get help! Slow them down, many new presidents are just getting the lay of the land and want to make their mark. Educate them on reasons for decisions, keep them informed and work towards postponing any decisions from being made early on,” Linda recommended.

Macdonald nIven

“Get help! Enlist the help of some of your supporting board members, of course if you don’t have supporting board members, well…maybe it’s time to get your resume in order. Try getting the president on a more visionary project and off the micromanaging stuff, but hopefully you have the support of board members who can help work with the president to get them productive.”

On a similar note, Dolores Vassallo, with over 25 years of leadership at the Suburban Club in Pikesville, MD, suggests: “If the manager has a good relationship with other board members, I would rally the troops.”

Dolores and Linda both rely on the board policy manual, a guide that sets out the expectations of the board regarding management, as well as the expectations the board has for itself, and what the manager can expect from the board.

Terra Waldron took several years to create and introduce her board policy manual to the leadership at Desert Highlands in Scottsdale, AZ and finds that the work was well worth the effort.

“I was fortunate that I had a president who understood the value of a policy of this nature. Once we introduced the concept and material, it took another two years to make this part of the culture at Desert Highlands. Now we can avoid many of the problems because everyone is accustomed to working under the guide. It really makes my job much more effective. There are still issues! But, now they are more operative and normal rather than with board - GM relationship.”

A dysfunctional relationship between the GM and member officials can be very difficult and dangerous for the GM. Fighting with a president will most likely not yield a good outcome for the GM.

“Directors will side with directors, it’s as simple as that,” says Linda. “If the GM undermines or embarrasses the director, well, it’s not going to be good for the GM.”

In summary, here are some tips to follow when the relationship starts to get off-balance:

• Try to go along, as long as you don’t veer too far away from the mission or vision

• Don’t take the director on directly, and never disrespect or embarrass the director

• Rally the troops (other, more supportive directors)

• Inform and protect the staff

• Initiate a board policy manual

• Be patient! Keep doing your thing

Finally, get support from your fellow CMAA Members, because it looks like we’ve all been there and done that! BR

MacDonald Niven, CCM, CCE is the general manager at La Rinconada Country Club in California and can be reached at (510) 439-8522 or via email: macniven09@gmail.com

TPC Scottsdale A Model

FOr recyclInG And WAter MAnAGeMent PrActIceS

It’s billed as the “Greatest Show on Grass,” but the Waste Management Phoenix Open might be better promoted as the “Greenest Show on Grass.”

The description, however, has nothing to do with the emerald color fairways, but the fact that the large weeklong event, which draws more than 500,000 spectators has achieved zero waste for three consecutive years.

TPC Scottsdale’s sustainability efforts demonstrate it’s more than just host to the Waste Management Phoenix Open with innovative techniques and a commitment to sustainability, Waste Management, the event’s title sponsor, has diverted millions of tons of tournament waste to energy through recycling.

of America and Golf Digest, the 49-year-old Plotts is keenly aware of his responsibility within the golf course management area and for the golf industry as a whole.

“It is our responsibility to do everything we can to help protect the environment and make sure it is better for generations to come,” he says with conviction. “As an industry, we have to find ways to reduce our inputs and use water qualities that are less than ideal. It’s our job to figure that out.”

Plotts, now in his 10th year at TPC Scottsdale, has implemented a conscientious recycling program that includes much more than just separating bottles and cans from paper waste. He deals with machines that use oil, cutting blades and chemicals.

“Waste Management is a great partner and title sponsor,” says Jeff Plotts, director of golf course operations at TPC Scottsdale, the host course for the PGA Tour event won by Brooks Koepka at 15 under par earlier this year.

“I am just one of many people involved in this event. But it’s pretty remarkable what they have been able to accomplish,” Potts explained.

It’s notable, too, that Plotts has been able to bring TPC Scottsdale closer and closer to zero waste the other 51 weeks of the year when the PGA Tour isn’t in town.

As a six-time winner of an Environmental Leader in Golf Award from the Golf Course Superintendents Association

“I’d love to say we are 100 percent, but we are not there yet,” he says. “But anything we recycle is a step in the right direction. You don’t have to be at zero waste to get started. It’s about continual improvements.”

He should also be proud of what his facility has done with water management, working in conjunction with the city of Scottsdale, which has a well thought-out plan for squeezing every drop out of its reclaimed and recycled water sources in an area that gets an average of just six inches of rain annually.

“We are constantly talking about water quality and water quantity out here in the desert,” he says. “We are fortunate the city of Scottsdale has a plan for reclaimed water for recreational uses. It’s what we survive on.”

Reclaimed water or grey water is generally polluted water that has to be filtered even before disposal. So the golf industry is helping by putting that water back into course irrigation lines and purifying it through ground filtration.

“We are able to use the reclaimed water that a community doesn’t even want,” explains Plotts. “It’s not water that would be coming out of household faucets or reservoirs. And when we put that grey water on turf, it gets recharged back into our environment. That is great for the ecosystem.”

JeFF

PlOttS, dIrectOr OF GOlF cOurSe OPerAtIOnS At tPc ScOttSdAle

It is not an easy concept to explain, and it is not understood by some area homeowners who drive by and see irrigations pumps turned on and green grass growing while they are hearing about drought conditions.

But Plotts is also trying to educate the public and his legislators

about why the golf industry should not be such an easy target when it comes time to drastically reducing water consumption.

Figures show that golf is more than a pretty green landscape, as it accounts for two million jobs annually and has a $46 billion economic impact.

“There are a lot of businesses out there that damage the environment on a daily basis that people don’t even think about, but they look at golf because they see us green,” says Plotts.

If Plotts has his way, people will see golf courses as being a healthy and sustainable green that is good for the environment. And he is doing his part to share that message as a GCSAA Grassroots Ambassador, by communicating with his state legislators on issues and concerns for the golf industry.

“We don’t want to be out there saying, ‘Hey, we have this thing solved.’

But it’s okay to tell others what we are doing well as an industry, and where we can still do better,” says Plotts. “That’s part of the healthy dialogue. And that’s when I think people will listen to us a little bit more.” Br

Craig Smith is director, communications and media relations, Golf Course Superintendents Association of America, Lawrence, KS.  He can be reached at (800) 472-7878, ext. 4431

The Environmental Institute for Golf is the philanthropic organization of the GCSAA. Its mission is to foster sustainability through research, awareness, education, programs and scholarships for the benefit of golf course management professionals, golf facilities and the game. Visit EIFG at www.eifg.org. or find us on Facebook or Twitter.

Trends in Golf toward Sustainability

Only a few decades ago the GcSAA’s tagline boasted, “We Keep Golf Green.”

A lot has happened in the US since then, with trends toward “firm and fast” and “sustainability” of golf courses. Actually with minimal inputs, we have seen more of a browning of golf courses.

FASt And FIrM

The original fast and firm came from several sources. The game traditionally had been played on links style courses for years in Scotland and the rest of the UK. Tour pros got on the bandwagon and if it was good for them than your average golfer wanted the same conditions as experienced by the tour players.

There is no real magic to firming up and speeding up greens. If you withhold the water and only use minimal amounts of fertilizer it is easily achievable. However, don’t try this at home unless you are prepared for some ugly consequences. The UK has much more favorable growing conditions with cooler temperatures and also many of their courses have different grasses with the use of fescues on the greens, and courses with a higher height of cut.

Golf in the UK is often ‘played in the air’, and the use of a bump and run shot is well rewarded where the greens are extremely firm. Many US courses will not allow for that shot as they are well bunkered in front of the green.

Fast and firm goes beyond greens and is also being used in the fairways as well, as evidenced at Pinehurst for the US Open. Again minimal inputs of water and fertilizer. But with all things remember there is always a catch. Those fairways were bermudagrass and after the tournament, with a little water and fertilizer, the turf was again quite healthy. This would not work for cool season grasses throughout the northern part of the USA.

WAter cOnServAtIOn

California has struggled with a lack of water for years. Superintendents have learned how to deal with it in a variety of ways. Weather patterns over the last few decades have resulted in California being in an emergency drought situation, as are a dozen or more states. There is only

a finite amount of potable water in the world. It makes sense to save that for drinking purposes. Likewise the aquifer is not unlimited as once people thought. It is dropping and affecting other people in the watershed.

Golf can be a part of the solution rather than a part of the problem as it relates to water usage and filtration. In California over 33 percent of the golf courses use effluent water to irrigate their golf courses. It would be hard to build a course today without such a water source.

Research at U of CA Riverside has shown that turfgrass acts as a filtration device and returns effluent water into the soil and potentially the aquifer cleaner than when applied. Yes, turf is a good guy and the science backs that up. It is so much better than dumping the effluent into our rivers, lakes, bays and oceans.

Look for other states to follow the lead of California and Florida in water conservation efforts. It is not limited to just the arid part of the country. So get ahead of the legislation that is likely to be passed in future years regarding golf course water use.

Craig Kessler led a Los Angeles task force, working with the LA Department of Water and Power, to formulate workable policies for golf course water use.

Thirty-two golf courses agreed to reduce their water usage by 20 percent as long as they could best manage their water for their particular site. Other water agencies in California are following suit. It is much better to be in the room when policies are formulated rather than to pick up the newspaper and see what new regulations are with little or no input from the golf industry.

2000 And BeyOnd

Many people have ventured to Palm Springs and Arizona to enjoy golf in a desert environment. Now times are a changing for the rest of the golf business and a variety of methods are being used to reduce water consumption as the desert folk have done for years.

Several water agencies have partnered with golf to provide rebates for turf reduction. With the removal of turf, golf courses can receive enough of a rebate to convert those areas to xeriscaping, mulch, decomposed granite, etc.

BRUCE R. WILLIAMS

Understanding Oxygen and Water Levels

It excites me to know that our industry is finally going in the right direction.

This includes those who deal with the maintenance of sports turf and golf greens, the science of physical properties along with the science of chemical and water properties in maintaining healthy turf. As I’ve written many times before, healthy turf cannot be maintained without oxygen, meaning there must be acceptable oxygen levels in our green mixes.

So when asked to speak at the Golf Industry Show in San Antonio, Texas recently, my topic was, what else: “Oxygen…the benefits of oxygen and how to maintain oxygen level in our root zone.”

In the late 1990s, the International Sports Turf Research Center (ISTRC) started doing research into why some putting greens struggled to have healthy turf when everything such as surface air movement, sun, disease, water, and the soil physical and chemical properties were not a negative factor.

We discovered that the lack of oxygen in a root system was one of the leading causes of turf failure. As this research continued over the next 15 years we’ve been able to pinpoint many factors leading to this oxygen-deprived condition.

The industry has been very slow to come around to the simple concept that adequate oxygen levels in our root zones leads to healthier turf, fewer disease issues and which also results, in most instances, in less use of chemicals.

The overwhelming interest in oxygen levels exhibited in San Antonio shows me that we are winning the battle that healthy turf needs to have acceptable oxygen levels, and I believe this is the beginning of a very extensive and complex research project.

We are now working with some prominent industry companies who are interested in this matter. For example, a prominent equipment manufacturing company has started doing research into developing new pieces of equipment at affordable prices to oxygenate root zones. Also talks are on-going with one of the leading surfactant manufacturers regarding the importance of uniformity in the movement of water.

By combining ISTRC’s 25-year database on physical properties along with its 15-year data base on oxygen levels taken from thousands of greens, we have a good start on this need to better understand oxygen and moisture levels. And not as separates, but in conjunction with each other.

Our future is in the expanding of our knowledge about adequate oxygen levels and uniformity of water movement in our root zones. Br

Dave Doherty is CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soilbased greens. He can be reached at (913) 7066635 or via email: daveistrc@hotmail.com www.davedohertyistrc.com

Surely on a 150-acre site clubs can find 15-20 acres that don’t need to be irrigated. That alone would provide a 10 percent reduction in irrigated acreage. Drip irrigation and sub-surface irrigation can be used to provide water to the drought tolerant species that replace the turf.

The greening of golf industry actually has become more of a “browning” of the industry. Golf course superintendents are stewards of the environment and want to be sure that their families, friends and golfers are able to play on sustainable surfaces for centuries to come! Br

Bruce R. Williams, CGCS is the principal of Bruce Williams Golf Consulting as well as Executive Golf Search, which specializes in headhunting for golf course superintendents and industry positions (www.EGSinc.net). Consulting includes working with golf facilities on agronomic plans, development of written standards, and fiscal management for golf course operations. Bruce may be contacted at Bruce@WilliamsGolfConsulting.com or (310) 991-9176. from Williams | 72

Quite a few golf courses are also changing their turf species to lessen the water requirements. Good examples might be the use of Zoysiagrass that takes less water and fertilizer than bermudagrass. Another example is the conversion of long over seeded fairways to 100 percent bermudagrass, which requires a lot less water than a bermudagrass/ryegrass mixture.

DAVE DOHERTY

Henry DeLozier Recognized with BoardRoom’s 2014 Lifetime Achievement Award

BY DAVE WHITE, EDITOR

Strange things, and sometime not so strange things happen when opportunity strikes!

In a nutshell, that’s the story of Henry DeLozier, one of BoardRoom magazine’s 2014 Lifetime Achievement recipients – a shaker and mover in the private club industry… and an optimist about the industry’s future.

“My career plan was to become an accomplished golfer and to play the game for my living,” related DeLozier recently.

After becoming a “pretty good player” as a successful amateur, DeLozier played as a PGA touring golf pro for about three years in the late 1970s. A graduate of Oklahoma State University, with a BA in English, DeLozier ranked as an All-American golfer.

But Henry’s take on his game, his life and the future in reality is quite similar to that faced by many who aspire to be a playing professional.

“The toughest business decision I have made was deciding that my golf game was not a good enough investment of my time and talents.” So with that decision to leave the game, law school beckoned.

Then opportunity got in the way.

“While waiting to begin law school, a friend asked me to help with a club near Chicago and that was when I discovered my gift for making money. It seemed very simple to me. I never did go to law school but I do spend lots of time reading legal documents,” DeLozier explained.

All that’s led to a most successful career through the golf, club and resort business including positions with Del Webb Corporation, Pulte Homes before joining Global Golf Advisors, an international practice providing consulting services to investment banking, golf ownership and operations in 2008.

DeLozier is acknowledged within the golf and club and residential businesses industries for his uncommon understanding and thought leadership. He’s a no-nonsense profit producer, an innovative marketer and an advocate of customer service extraordinaire.

Given his background with residential real estate development and lifestyle strategy, he serves GGA clients by identifying and refining strategic options that help accelerate tactical solutions and financial returns. For many years, DeLozier also has passed along his knowledge and information as a regular contributor to BoardRoom magazine, and through other relevant publications and presentations.

He’s also well known for his volunteer contributions to many groups and organizations, including Audubon International, the PGA Employers Advisory Council and the National Golf Course Owners Association.

DeLozier also recently was one of five search committee members who executed the selection process in the Club Managers Association of America CEO search during the past year. Jeff Morgan succeeded Jim Singerling, who retired in 2014, as CMAA’s CEO.

Henry’s exceptional leadership is widely recognized by his friends and colleagues. The tributes are many.

“Upon hearing of the recognition of Henry DeLozier as a Life-time Achievement Award recipient, my immediate reaction was certainly not one of surprise,” expressed Jim Singerling. “Although a quiet and unassuming personality at first blush, the wealth of knowledge that gushes from Henry’s ever present lap-top computer is a direct expression of GGA’s treasure trove of industry support. I have known few business professionals who can take the Godgiven talents with which we are all bestowed and successfully apply them to the degree that Henry DeLozier is able.

“Lastly, everyone has the opportunity to benefit from Henry’s amazing knowledge. However, do not pass up the opportunity to actually get to know this human being. Your life will be enriched enormously. Just be very cautious when negotiating strokes on the first tee,” cautioned Singerling.

“I cannot think of a person or professional who is more deserving of this honor and recognition,” commented Damon D’Orio, past president, CMAA, and CEO, Charlotte Country Club in Charlotte, NC

“Henry is as passionate, caring, and thoughtful as any business professional I have ever had the pleasure of working with. Henry understands that positive, fully engaged relationships are the lifeblood of success. Contracts and business transactions are negotiable; dignity and integrity are not. No one understands this more than Henry DeLozier whom I am proud to call my friend,” he added.

“I am thrilled for my good friend Henry,” expressed Mike Leemhuis, president of Ocean Reef Club, Key Largo, FL.

“I’ve known Henry for many, many years and am thrilled that our industry and specifically Boardroom magazine has chosen to reward him with this prestigious award. I’ve traveled the world with Henry and have witnessed firsthand how he has shared his vast club/golf knowledge with club managers and international industry leaders alike.”

And for Stephen Johnston, founding partner of GGA, it’s been a working relationship with Henry for over 22 years.

“Henry’s industry knowledge and experience is exceptional. The best business decision I ever made was having Henry become my partner at Global Golf Advisors.

“His operational and real estate experience has created several solutions for many of our clients. More importantly Henry is very generous with his time, sharing his knowledge in articles and presentations with many audiences and organizations on a national and international stage,” Johnston related.

Colleague Van A. Tengberg of Foley & Lardner LLP, describes Henry as the consummate professional…who provides sage advice, a carefully reasoned strategy and prudent solutions.

“His intellect and experience are only surpassed by his integrity and professionalism. Henry operates at a level that is well above his peers and is recognized as one of the true distinguished statesmen of the industry. I am grateful for my association and friendship with Henry,” explained Tengberg.

So what’s drawn Henry to the private club industry?

“We, who look after private clubs, are responsible for the safe and happy lifestyle of our clubs. That means that we care for our members, their children, grandchildren and (nowadays) their parents,” DeLozier offered.

“I consider it a great privilege to be a highly effective servant leader. Nothing pleases me more than seeing our clubs and my friends exceeding their members’ expectations and creating lifetime memories. When my efforts contribute to a club’s economic health, and ensures that careers and member enjoyment grow, I feel immense satisfaction.”

And where does DeLozier see the industry today…and in the future?

“I remain very optimistic for private clubs. It’s common knowledge that the leading clubs are prospering and aggressively so,” DeLozier exclaimed.

“There are too many clubs that lack strategic vision and a stable platform of governance to ensure financial sustainability – which I consider the capability to pay all of the operating costs and fund reserves. It is the group of clubs that can achieve performance excellence that inspire me to do my job and to do it better all the time.”

Over time the industry, according to DeLozier, has changed and CMAA is one organization that’s had a huge impact.

“CMAA’s educational platform has changed our profession,” DeLozier expressed. “The compensation levels and job tenure data reflect that educational attainment in the professional disciplines has changed the game.

“Each of us owes appreciation to people like Jim Singerling, the late Joe Perdue and Jason Koenigsfeld, all of whom have helped us to be better. And, each of us bears the responsibility to be continuous learners. There is no time to stop learning,” he added.

“The divide between the top-performing clubs and all others is growing wider. The top-performers are improving at a faster pace than those clubs that lack the vision and governance capabilities that create and sustain excellence. As such, the ‘haves’ are in cycle of growth and the others are fighting for their continued existence.

“If I were a private club leader, I would insist on clearly articulated strategy and deliberate governance. As a general rule, the tactical solutions that follow those two keys become highly effective,” DeLozier said.

Yes, there’s been much that Henry DeLozier offered over the years, but perhaps friend Mike Leemhuis sums it the best.

“It’s important for all to know that first and foremost Henry is a great family man … as well as a great friend and mentor to many in our industry. When looking up the meaning of the word ‘professional’ … over and above what one might find in a dictionary, there should be a picture of my good friend Henry D.

“Congratulations to a great man and a wonderful person and someone I am proud to call my pal!”

Yes, so many reasons why Henry DeLozier is BoardRoom magazine’s 2014 Lifetime Achievement award. Br

BoardRoom magazine Lifetime Achievement Awards

BoardRoom magazine’s Lifetime Achievement Award is recognized as one of the private club industry’s most prestigious. The Lifetime Achievement Award is presented annually to those who have served the industry with distinction, honor and integrity.

John Fornaro, chief executive officer, the Association of Private Clubs and Directors and publisher, The BoardRoom has chosen the distinguished winner each year. Criteria for Lifetime Achievement Award candidates include: how each candidate has helped the private club industry; how they have impacted the industry and how they should be remembered for their contributions to the industry.

The three recipients for 2014 – George carroll, linda carroll, and henry delozier received their Lifetime Achievement Awards at a presentation recently during the CMAA World Conference in San Antonio. This marks the first time in the history of this award that there are multiple recipients in the same year.

The achievements of George and Linda Carroll were outlined in the March/April issue in a story written by Jim Singerling. Henry Delozier’s feature story is published in this May/June issue.

Are your locker room vanities a clutter of amenity

bottles?

creAte the

AMenIty dISPlAyS OF yOur dreAMS.

Sports Solutions® has the creative and design capabilities to manufacture any amenity presentation for those scattered and messy bottles.

We can create the perfect dispensing systems and storage units for all accessories, in over 100 Corian® colors to match your vanities and showers. Custom labeling or engraving is available to enhance your presentations into a neat, easy to use, and color coordinated display. We are also a full service amenity provider.

For the club that wants their amenities “off-the-counter” and theft proof, our newly patented, Magnetic Locking 24 oz. Interlocking Acrylic Dispensers, with black or white lids, house all bulk products for sprays, dry amenities, all pump liquids, and mouthwash cups. Custom labeling in outdoor signage vinyl is guaranteed to last years. Br

Management Sustainability 10

recOMMendAtIOnS

Going green or sustainability, I guess, means improving your environment and do no damage. It is also about controlling your environment without letting it control you.

One manager friend told me that his club is like a computer virus. It entered his life, shifted his balance, controlled his time and, when he became an old version of himself, it deleted him from the system.

Club culture and politics play greatly into the ability of the GM/COO to succeed. Fifty years ago there were some highly recognized leaders of CMAA that were really clubhouse managers.

Today there are many managers that are true executive leaders of their clubs. However, there are still today good managers who run good clubs, but play the culture/political game and stay somewhat low-key because that’s what is needed and expected by the membership.

The positive is that the industry is doing an incredible job of educating unpaid volunteer leaders sitting on club boards. New management

tools are making their way into the industry from corporate America, and one is the concept of the Balanced Scorecard (BSC). Here is one of the many designs.

The Balanced Scorecard Institute developed the concept of the BSC Strategy and Management Tool, which has significant impact in corporate America. Basically it provides a template to track and manage strategic and operational goals. It gets somewhat academic but can be summarized for the private club industry as follows:

1. Assess

2. Strategize

3. Establish objectives and performance measures

4. Measure performance

5. Analyze and realign as necessary

What are the results of using the BSC?

Peter Ndaa, CEO of Balanced Scorecard Eastern Africa, has identified what caused companies to be rated highly by their customers. I’ve selected five areas that are at the forefront of great clubs. They are:

1. Responsiveness to members

2. Diversity of product offerings

3. Reliability and consistency

4. Affordability of services (high value quotient)

5. Innovation – A driver of change

These are solid targets for any GM/COO. Let’s look at two recommendations, within each of the five areas that can help your club move more closely towards these highly rated success factors.

reSPOnSIveneSS tO MeMBerS

1. Solicit opinion and respond: Surveying the membership on a regular basis is critical. This is your corporate market research. Management and club leaders must understand the members’ likes and concerns so they can deal with those concerns effectively. So follow the three-step

JERRY MCCOY

Golden Rule of surveying. Ask their Opinion. Tell them what they said. Tell them what you are going to do about what they said.

2. Communication continuously: Remember, if a member does not know the answer they will make up one of their own that is logical to them. You really can’t over-communicate on big picture issues and club culture. However, members want information about those areas of the club important to them. Give members options for what information they want in blast emails. If not you can irritate, which is counter productive.

dIverSIty OF PrOduct OFFerInGS

1. Variety is critical: There are a lot of companies vying for your members’ disposable dollars. Make the club an exciting place by changing up things regularly. Menu changes, entertainment opportunities, and children’s activities are all great marketing opportunities. Don’t let things get stale.

2. Understanding the competition: Know what your competition is doing at all times and stay ahead of them. If a competitive club starts doing something interesting, examine options to see if it is right for you. Members repeatedly take ‘the grass is always greener’ attitude with other clubs. Make sure the community understands the grass is actually greener at your club.

relIABIlIty And cOnSIStency

1. The Importance of training: We all understand that training is important. However, we don’t always have a training mentality. Each year the staff develops annual goals. Insure that every department head has a training goal at least quarterly, or even better, monthly. Monitor the training initiatives as part of the department heads evaluation. Training initiatives should impact annual bonuses.

2. Focus on the sense of urgency: Members evaluate every aspect of service for both the quality of the service and also the promptness of the service. Many times we get focused on the quality and don’t put enough emphasis on the timing of the service. Remember that especially in the food and beverage areas timing is critical.

AFFOrdABIlIty OF ServIceS

1. Establish your brand level: We have many levels of clubs in our industry. We aren’t all at the level of Congressional, Boca West, Olympic or Augusta. Clubs satisfy different economic markets. Evaluate your overall brand against your immediate competition to insure you are competitive for the members you are targeting.

2. Measure your value quotient: Value is the product or service you provide based on the amount it costs. The member’s interpretation of the value they receive

regarding a specific product or service is the value quotient. Many times members rate their overall satisfaction higher than they rate the value. When comparing satisfaction to value target raising value levels, the ideal is to have satisfaction rating high and value ratings as close as possible.

InnOvAtIOn – A drIver OF chAnGe

1. Provide an environment for innovation: Innovation is the driver of corporate America. Each GM/COO should embrace innovation for positive change. Encourage creativity up and down the organization. Provide incentives to innovate at all levels. A perfect example of CMAA’s support for innovation is the Idea Fair at national conference.

2. Thirst for knowledge: Education has been a prominent aspect of managers’ growth for some time. Go after the opportunities there are at the chapter and national level of CMAA. We all have busy lives, but carve out the time for professional enhancement. It will pay significant benefits in the long-term.

Remember, clubs are funny places. It doesn’t matter how effective we are in planning and management systems, our industry will always be unique. Consider the following:

• We have handicap parking spaces in front of tennis courts.

• We leave beautiful silver out in the lobby worth thousands and lock up junk in boxes in the storeroom.

• We have members complain about walking 100 yards to run five miles on the treadmill.

• We have 10-person committees to do the job of one club manager.

• We leave all the doors open and lock up the membership applications.

• We buy hot dogs by the dozen, scorecards by the hundreds, golf pencils by the thousands and towels by the millions.

Realigning club thinking can be a long and difficult task. Keep a sense of humor throughout it all. Remember the nice thing about being imperfect is the joy it brings to others. Br

Jerry N. McCoy, MCM, is the president of Clubwise, LLC, a consulting firm specializing in strategic planning, master planning, operational audits and governance issues. Clubwise was the 2013 Consulting Company of the Year by BoardRoom Magazine. He can be reached at www.clubwiseconsulting.com or CMAAMCM@msn.com

The Dos and Don’ts Of Creative Partner Relationships

LYNNE LAFOND DELUCA

every year I always encourage our clubs to develop new strategic creative partners relationships to build referral business and provide new and exciting offering to your members and events hosts.

In the club industry, (as with most industries), and especially for our catering departments, our creative partner relationships are extremely important! The saying, “it takes a village” comes to mind here.

Even if you are in a catering department of one or two people, you have a much larger “team” when you consider all the vendors it takes to successfully execute just one event. On the average, it is 43 vendors! Sounds like a lot, but when you really start to count all the details involved in an event and exactly who an event host must touch to plan an event, the number starts sounding very realistic.

Unlike other venues, hosting an event in our clubs may pose a few extra considerations that some vendors may not be aware of, unless they have worked with you extensively. It is our job to educate them!

Secondly, by maximizing the potential of these relationships, we open ourselves up to additional offerings and options for our event hosts and usually that means upsell opportunities as well.

So, here are a few “dos and don’ts” to keep in mind!

Do familiarize your vendors with our club “lingo”, culture and etiquette so they will feel comfortable while in the club and on the grounds. Even writing up a “club guidelines” specifically for vendors will help them feel comfortable (and make sure your correct policies are communicated properly each time). No one likes to make mistakes that could be avoided!

Do speak to every new vendor before they step foot on the property. Make sure they know where they can load in and load out; timeframes for doing so; where photographs can be taken and where they cannot, and, of course, “member etiquette.”

Do strive to grow your new vendor relationships through in-person networking and social media. Always be on the lookout for new products and services.

Do reach out often and with purpose to your current referral vendors – go visit their businesses and invite them to the club. You will never know about all of the amazing inventory that a rental company may have until you visit their warehouse! Always ask for updates on their products and services.

Do educate your creative partners about your club’s policy on nonmembers hosting events at the club and your member-sponsor policy. Most people assume that because you are private, non-members just cannot host an event there, and that is not the case at many clubs.

Don’t assume that a vendor has worked in a private club before and knows the “ins and outs.”

Don’t post negative comments about any creative partner on social media. If you have witnessed poor service or product coming from a particular vendor and do not wish to work with them anymore, write them a letter or email explaining, in a constructive way, why you must remove them from your referral list.

Don’t treat creative partners like “hired help” while at the club! Treat them like your partners because that’s what they are! Even if the host pays for the “vendor meal” of a club sandwich and fries, upgrade them to the entrée being served to all guests. Trust me, this will go a long way and allow you to stand out from other venues in which they work. Next time they are asked for a referral, they will think of you first!

Lastly, as with any win/win relationship, do ask your creative partners how you can work together to create a mutually beneficial relationship.

What do you need from them in order to sell and upsell more effectively?

How can they help you to create exceptional member events?

What type of collaterals do they need in order to share your information with their clients and event hosts?

Building and growing your creative partner relationships are an excellent way to increase your overall event offerings and the “experience” factor at the events you plan for your members and event hosts.

And, these creative partners are right there, waiting for your call and wanting to help you. Br

Lynne LaFond DeLuca is the executive director of the Association of Club Catering Professionals and a private club industry consultant.

Email: Lynne@TheACCP.com

Web: www.TheACCP.com

Twitter: ClubCateringPro

Facebook: AssociationofClubCateringProfessionals

Perception Shapes Policy IF FOOd WAS cASh…

BILL SCHWARTZ

What’s the difference between a Sysco truck and a Brinks truck?

The obvious answer would be that one holds food and the other holds cash. But if the Brinks truck has $40,000 in cash on board, and the Sysco truck has $40,000 worth of food, which cargo is more valuable?

A fundamental key to food and beverage control is the ability to see food and liquor as cash – not just something we eat or drink. Imagine the Sysco truck full of cash instead of groceries. Imagine the storerooms with shelves full of cash instead of canned goods and spices. Imagine the walk-ins and freezers as refrigerated cash vaults, instead of meat and fish lockers.

Adjusting the perspective from food to cash provides a variety of insights into proper control culture. We are acutely aware of the need to tightly control cash, and we have systems, receiving and handling procedures, secure storage and close accounting department oversight for cash.

Food and beverage, on the other hand, is hardly controlled at all. For most clubs, there is no F&B control system.

There are few, if any, written procedures for receiving, storage or transfer of these goods. Storage is far from secure, with almost anyone who works in the building having free access to it.

And the accounting department is only involved at the end of the month, typically just to provide the end-of-month food and beverage costs. The same people who order the food receive the food, sign the invoices and count it. This would never be allowed if cash was involved.

It’s all a matter of perspective. If food was cash, things would be quite different. It would be a top priority to establish tight control. Systems and procedures would be in place.

Accounting would play a much more significant role, and F&B costs would be much lower –perhaps 3-5 percent of F&B sales for most

clubs. Yet, many club managers don’t see it this way. They see $80 of cash in a server’s hands as more important to control than $80 of tenderloin in a cook’s hands.

If food was cash, who would be responsible for keeping track of it?

The accounting department would almost certainly be the logical choice for safeguarding the club’s food and beverage inventory if it was cash. Of course, some of the inventory (cash) is in production (circulation), and therefore difficult to control.

On the other hand, some is not. Depending upon the size of the club and the extent of its liquor and wine inventory, varying amounts of inventory may be kept in storage for eventual use. Most clubs have more than 30 days of liquor and wine in stock, and many have significant amounts of non-perishable food items in their inventory.

centrAl StOrAGe

Both issues – who should be responsible, and how should inventory be controlled – can be addressed with the concept of central storage.

While more typical with our larger club clients, smaller clubs can use a version of this concept as well. Central storage is not necessarily one large room where all goods are stockpiled before distribution to outlets. It can be multiple small rooms or even areas cordoned off inside walk-ins or freezers.

The key is that items in central storage belong to and are the responsibility of the accounting department and are moved in and out using purchases and transfers. This approach makes these items controllable.

Most clubs already have a liquor storage room, which is one component of central storage. Because of the perception that liquor is valuable and somehow more prone to theft, it is typically locked up in a special storeroom with limited access.

I’m not sure why managers think an $20 bottle of vodka is more valuable than $20 of beef, but broadening the perception to acknowledge that food is every bit as valuable and prone to loss as liquor, it would make sense to isolate non-liquor items as well, if possible.

The objective is to have as much inventory in central storage, and as little in the outlets as possible. There is a direct relationship between the amount of F&B loss and the ability to control storage and distribution of that inventory. Using the cash example, think of all the places where cash (formerly considered food) is stored in the club. Food and other inventoried items are scattered all over the place. This would be totally unacceptable if food was cash.

Central storage acts exactly like a cash vault. It is secured, there is limited access, movement in and out is controlled through purchases and transfers, and it is staffed and managed by the accounting department. Whether there is one room or many is simply a function of the facility’s layout.

cOntrOllInG centrAl StOrAGe

Since goods in central storage are not involved in production, it is fairly easy to track them using a perpetual inventory approach. Perpetual inventory is simply a function of adding to inventory as items move into central storage and subtracting as they move out.

Goods typically move in through purchases and out through transfers. Using this approach makes it possible to know exactly how much of any given item should be on the shelves at any time. If, upon inspection the quantity is different from that determined by the perpetual inventory, a problem exists.

Only this time, instead of looking at a percentage at the end of the month and trying to figure out what caused the number to be unfavorable, we know on a daily basis exactly which item is a problem and exactly how significant the problem is.

Perpetual inventories can be easily calculated using F&B inventory control systems. Given the fact no recipes, yields or sales are involved, this type of inventory is the easiest to track.

Finally, the central storage area can be secured. Like any other cash vault, these areas should be locked and keys should not be readily available outside the accounting department. Cameras can be installed and procedures developed for allowing limited access in case of emergency when no staff members are available to handle the transfers.

The central storage approach, when managed by the accounting department is a major check and balance for club foodservice, and could be responsible for reducing F&B variances by as much as half of their previous levels.

Is Increased Control Worth the Additional Labor Cost?

First, it would be necessary to agree that additional labor cost is needed. In large clubs, the additional labor cost is

typically not necessary, since simply reassigning positions and utilizing individuals in multiple roles can be effective.

For smaller clubs, service staff can be trained to handle these essentially clerical tasks. The labor increment should be far lower than the potential savings.

Again, the question becomes one of perception. If it is possible to reduce costs by more than three percent of sales through increased control, is it worth one percent of sales to pay for it?

Or, perhaps more pragmatically, is the club properly operated if it consistently loses 3-5 percent of sales unnecessarily, because of poor control culture?

Realistically, the fact that funds are not currently allocated to provide proper checks and balances, points out a major flaw in the operation.

Control should be part of the routine operating budget.

After all, food is cash, and most members would agree they can’t afford to throw cash in the trash! Br

Bill Schwartz is the founder and CEO of System Concepts, Inc. (SCI). Based in Scottsdale Arizona, SCI is a food and beverage procurement and inventory management consulting firm and the developer of the FOOD-TRAK System, which is widely used in club operations around the country. Bill can be reached at (480) 951-8011 or bills@foodtrak.com.

WORK-manship or WAR-manship? the cOnStAnt BAttle BetWeen ServIce And KItchen

ANDY STANGENBERG

“change the way you look at things and the things you look at change” – Wayne dyer

Some things should not be mixed. They just don’t function well when paired and should rather be left alone…just like water and oil, cats and dogs or politics and truth.

When standing alone, there is strength and purpose but as soon as they are blended, both elements bring out the worst in each other. So what will happen if we match two opposite professions?

Their job code couldn’t be further apart, so very different in genetic make-up and one has nothing in common with the other. So what happens if we blend kitchen with service?

Interdepartmental cross trainings are a very effective way to teach your staff to respect other department’s realities. Let your servers experience how stressful it is to work in the kitchen and let your kitchen staff feel the challenge when working with demanding members. Clubs who religiously practice this exercise display a much more harmonic relationship. It doesn’t mean that there are fewer problems. They just deal with each other much more respectfully.

In many cases it feels like an outbreak…an illness of dysfunctional symptoms and despicable behavioral interactions, which often tribute to system shut downs. Even the best restaurant concepts will operate only at 50 percent efficiency if there is no workmanship between front and back. Here is a recent example:

A server takes food to the wrong table and the kitchen has to re-fire four new dishes. The

server apologizes for his mistake but the chef throws a hot pan and hits him on the upper arm! More stunned than hurt, he leaves the kitchen to report this to management. The manager replies: “Chef is in a bad mood today. Just leave him alone and stay out of the kitchen.”

The manager never brought it up to the chef nor did he take any action.

Sadly enough, stories like this happen more frequently than one may think. There is little to no respect for each other, no common ground, no attempt to reason, listen or understand while ego, blame and finger-pointing become greater than the value and passion for our industry.

It puzzles me that the code of conduct seems to be missing entirely. Management is often overwhelmed with the severity of this conflict and rather turns a blind eye, especially since most of them have no say so over the kitchen. No wonder!

And all that would not be such a big problem if there were no members. But there are. I invite you to step into your restaurant and just watch. See, hear and feel the reality that transpires between kitchen and service.

Eduard Propst, my mentor and one of the best food and beverage directors in the country once told me: “If it looks like a fish, it smells like a fish, most likely it’s a fish.” So, if you find that the synergy between front and back is tense, unsettling and negative, most likely you are right. And if you can feel it, so can your members.

Interdepartmental cross trainings are a very effective way to teach your staff to respect other department’s realities. Let your servers experience how stressful it is to work in the kitchen and let your kitchen staff feel the challenge when working with demanding members.

Clubs who religiously practice this exercise display a much more harmonic relationship. It doesn’t mean that there are fewer problems. They just deal with each other much more respectfully.

Every cause has a reason and every cause can be changed if we understand why the problem exists. The lack of respect between the two departments is rather apparent and I can see where this is coming from. If we don’t know the logistics and complicated job-specifics of other areas, we, by nature, don’t pay much attention, let alone try to understand and respect their realities. The answer lays in making our staff understand each other’s truths better, and above all bring motive and purpose back to the forefront.

I recently worked with a private club where their kitchen and service problem appeared beyond repair. I have seldom seen a more dysfunctional group and despite all efforts from management, the work ethics and synergy was below negative.

Servers didn’t want to go into the kitchen because of fear and the kitchen staff used servers to unleash their frustrations. The turnover of people coming and going was out of control, and member complaints overwhelmed the executive team. In other words, a dire situation.

We used a cool group game to fix it, and I invite you to try this at your club.

I invited the kitchen and service staff for a meeting. Each was given a blank piece of paper and asked them to follow my instructions and write down their answers.

Question: Who do you work for?

Question: Who is paying you?

Statement: Based on your specific job code, please list the four most important things you do every day.

The answers were all over the board but gave me clear indication as to why the team could not function. They had lost sight as to why they were there to begin with.

Most all of them wrote that they are working for the club. Some said they are working for the members or their boss. Every one of them stated that the club is paying them.

As it relates to the four most important responsibilities, it again was all over the board. The kitchen staff listed food and prep specific responsibilities whereas the servers listed front of the housework tasks. Only a few mentioned the word ‘service’, and only two mentioned the ‘member’ and no one listed each other as part of their responsibility.

That’s when I turned my flip chart and displayed my answers.

Who do you work for? – For myself and my family, regardless of employment

Who is paying you? – The member 4 most important things you do every day?

1. Care for my members (regardless of my position)

2. Respect my co-worker (regardless of their job duties)

3. Make it fun laugh more often and share my passion)

4. Follow my specific job responsibilities (do my job)

From time to time we need to be reminded why we are here and re-set our priorities. Once the drive for success and the security of family becomes greater than the reason for frustration, common ground is possible and by default, people will cope with each other more respectfully.

We followed this by designing a mutual code of conduct document. Everyone shared their input and we came up with a common list of behavioral strategies.

Everyone signed the document but what came next took me a bit by surprise. I didn’t ask them to do so but all of a sudden the group mixed…there was much hand shaking and many words of apology.

The group found common ground again because they were reminded about the importance of family, future and success, and of course that our greater good lies in the hands of the people we serve – our members. Br

Andy Stangenberg is CEO/founder, Q-Principle, “The academy for creative learning. ” He is a master coach, responsible for employee and leadership development. He facilitates fluently in English and German. Andy can be reached at (678) 260-8708 or via email: andy@q-principle.com www.q-principle.com

Golf a Key Metric For Success at Philadelphia Cricket Club

SPECIAL TO BOARDROOM MAGAZINE

Generally speaking, increasing golf rounds and, in particular, increasing rounds per member, indicate happiness with the golf experience at a golf club. the happier the member, the more they use the facility!

Well, that’s certainly true at the Philadelphia Cricket Club, a BoardRoom Distinguished Emerald Club, which is using the rounds of golf played as a key metric for success.

“It might appear to be obvious, but it’s often overlooked as a metric of member satisfaction.  Between 2006 and 2015, our total rounds of golf at the club have increased by 84 percent, yet our total members in 2006 versus 2015 increased just 15 percent,” expressed Jim Smith, Jr. PGA director of golf, the Philadelphia Cricket Club.

“Our rounds per member shot up an astonishing 60 percent in that same period – member rounds, plus guests of members’ rounds. We’ve gone from an underutilized facility to one bustling with activity, yet with plenty of accessibility with our 45 holes of golf.

So how and what information does the club collect that’s allowed such an improvement?

“We use ForeTees, an online tee time reservation system. Every round of golf is recorded so it permits us to break down the larger numbers into more usable statistics,” explained Smith. “For example, are we getting abnormally high guest rounds during a certain period? If so, should policies be adjusted to help spread out play?”

Over the years the club has continually tweaked policies and access to ensure that “we don’t have certain times where getting a tee time is really difficult. Maintaining this kind of access is only achievable by looking at real data,” he added.

And other club departments certainly benefit. “In particular, our food and beverage operation and grounds department have a clear understanding of when we’re likely to be busy and when not, and they can then adjust their efforts accordingly.”

The real time data also helps club management make other decisions.

“The rounds of golf ties back to other measurables – cover counts in the restaurant, range usage, participation in group clinics, caddie needs and more,” Smith outlined.

“By understanding past usage patterns and ratios, it can help predict future usages and allow us to staff accordingly. For example, we added another teaching professional before the start of the 2014 season because the continuing trend of higher rounds of golf was leading to more participating in instruction programs and we needed to accommodate that interest and need.”

So can other clubs adapt this system and obtain the same kind of information? It’s possible with a caveat, Smith suggests.

“I’d say yes, but they’d have to have a reservation system like ForeTees to make it work. If you don’t capture every round of golf on a tee sheet, have it categorized properly, and then use the reporting mechanisms to understand play, it’s hopeless.

“We all know of clubs that take great pride in not using tee times –places like that may have a harder time collecting and analyzing data than those who use a tee time reservation system,” he explained.

One point is certain: data drives good decisions, both for golf and clubwide at the Philadelphia Cricket Club.

“It makes it much easier for our GM, or our board and executive committee to make solid decisions if they have objective data to look at, versus having to make a decision based on subjective arguments,” Smith suggested.

“We’re constantly refining the process we use to drive good decisions, but I can tell you that having specific and quantifiable information and numbers makes it easier, not harder, to arrive at the right path to take.” Br

JIM SMIth, Jr. PGA dIrectOr OF GOlF

Delaire’s Country Club’s Programs Keep Members Well and Fit

“If you don’t use it, you lose it!” It’s the old adage we’ve heard before. But that’s precisely why delaire country club’s wellness and fitness programs are simply as good as gold.

Members of this BoardRoom Distinguished Gold Club in Delray Beach, Florida are using it…the club’s fitness and wellness center, that is.

Phil Bayne, the club’s fitness director who has been part of the Delaire scene for 20 years says, “I’ve seen this country club mold into a pleasant dynamic community and from what I’ve seen the fitness center is either the first or last stop when our members are leaving golf or tennis events.

“I’d say that during a year 75 percent of all members participate in the activities offered by the fitness center…that’s approximately 262 members.”

And the fact members are satisfied means Delaire Country Club is doing what it’s supposed to do. “It is one of the outstanding amenities our club offers, and it certainly adds to our member experience,” opined general manager Trent Squires.

“We offer our members classes without any additional cost, for all levels of fitness. It provides a positive, friendly, community-enriching environment for our members and it certainly has grown over the years,” Bayne added. The center also offers personal training and physical therapy.

“It’s our variety of classes for all ages, I believe, that sets us apart,” Bayne outlined. “Our training staff’s experience with exercise variations, as well as individual exercise…ensures progress in all fitness programs.”

Delaire boasts a variety of trainers and classes creating unique opportunities for members. This means members can work with someone that will suit their personal needs and fitness goals, with ease and positive motivation. And it helps to keep members consistently involved in all that Delaire Country Club offers.

So how does Bayne and his staff work with members on their individual program?

“The first thing we do is acquire a release. This includes taking an extensive medical history. When working with individuals for an exercise program it is imperative that we are knowledgeable on all limitations, injuries, or previous ail-

ments. This not only allows us to design an individual one-of-a-kind program, but also ensures progress and positive growth for the client, based on their specific needs.”

“Members benefit from enrolling in personal training to supplement the classes we offer,” Bayne added. “This allows members to experience oneon-one training that will assist them in progressing in the particular classes they enjoy.”

Personal training gives members the benefit of working with their trainer on a schedule that works best for them. This helps create consistency in their exercise programs.

“Generally three times a week, 30 minutes to an hour, will ensure a healthy lifestyle.” Bayne stressed. “Our trainers are available at the members’ convenience to map progress and discuss weekly short term as well as yearly long term goals.

“We are current on the accomplishments of our members’ fitness endeavors, which I believe promotes our motivating atmosphere for our members to keep themselves moving no matter what activity it is that they enjoy.”

But wellness and fitness certainly aren’tisn’t the only benefits of the center’s activity. The club’s fitness and wellness center employees have become well acquainted with all the participating members and “we have created a great feeling of camaraderie. It certainly makes our gym an enjoyable place to be,” Bayne enthused.

And another great reason for Delaire’s members to enjoy the amenities and members experience of their club. Br

graphics, and knowing the member profile of those joining over the past five years.

How old are they. Do they have kids at home? When you do a survey how does this new demographic respond to what they like or need? Once you know what new members look like and what they want, setting yourself up to be better positioned is science, not guesswork.

Using the same principals of data and discovery, you can likewise solve the issue of membership categories most appropriate to your market, pricing and any number of

from Plights and Insights | 14

Whoa! Never did I imagine that after being victimized while under the hairdryer, I would be re-victimized by the salon’s owner. Instead of receiving an apology, I was yelled at. It felt like the proverbial knife-twist post-insertion in my back. After five-plus years and thousands of dollars spent at her salon, why did she treat me this way??? How much did she value me as a customer?

Aside from the fact that I no longer have my favorite earrings, I’m distressed by the owner’s extremely poor role modeling. Aside from Ed Debevic’s (a landmark Chicago diner whose waiters are renowned for their snarky com-

from Board on Board | 16

Clubs can also invest in the health theme by updating their food program to include fresh and organic ingredients and healthy beverages.

Club leaders can increase their effectiveness and overcome the natural resistance to change that builds up in these organizations if they first sketch out the major

from Cover Story | 21

“Through very difficult sea conditions it’s very important and fun to recognize celebrate and share the success in the award event. More importantly, our success provides us the confidence, energy, improved navigational tools and resources for the even more exciting and rewarding cruise ahead.”

Board member and vice commodore Jan Hutchins confirmed that feeling of success. “It’ so exciting to have 350 members join together to celebrate the Emerald Award. The pride in what the members and staff did together pulsated throughout the club and will set a momentum for the future.”

Long time member Mary Sue Wechsler explained how the club “has provided us with a wonderful group of friends…It’s nice to know how the emphasis of the award was on the ‘intangibles’ that make SYC so special to all of us.”

Ah, yes, the intangibles that contribute so much to the member experience!

other questions you face as marketing decisions every day. If you haven’t joined the “membership as a science” revolution yet, you’re falling behind. If you’re falling behind you might be running out of time.

Historically, misinformed decisions could be tolerated and overcome. Bad decisions in today’s competitive environment can be terminal. Do the research and see more “green” in your membership returns. BR

Rick Coyne is CEO, Professional Club Marketing Association and a regular contributor to BoardRoom magazine. He can be reached via email: Rick Coyne rick@clubmark.com

ments to customers), extremely few businesses can get away with treating customers poorly.

It’s too bad the salon owner didn’t demonstrate a caring, ethical response in front of her employees. Perhaps she should take a lesson from the medical records firm…and a lesson well learned for how private clubs should treat their members. BR

Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the President of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 331-7475.

themes that are likely to impact their club and then determine how to customize these to their environment.

Green, time, family, health and wellness and technology are the dominant categories. Invest in them and find big dividends in member use and satisfaction. BR

Frank Vain is president of McMahon Group and can be reached at fvain@mcmahongroup.com

It’s been a very active time for the Sarasota Yacht Club. Following the celebration, members received three videos reminding them of the Distinguished Emerald Club award and future possibilities; SYC Finance 101 (the basics of operating a club and importance of membership), and a testimonial with two members sharing how they have recruited new members. Another presentation happened at the club’s annual meeting. About 300 members attended as Jack Sullivan of Kopplin Kuebler, a private club consulting firm, presented Past Commodore Pete Kujawski with his award as one of BoardRoom’s Top Presidents for 2014. Each year BoardRoom selects the most outstanding board presidents from around the world and 22 are being acknowledged as the best in 2014.

And as a bonus, 20 new members signed on with the Sarasota Yacht Club…a scintillating wrap-up for the club’s month long celebration – It Starts With Me! BR

Kapoor, a hospitality consulting firm based in San Marino, CA. It’s a triple layer of clarification and accountability.

“The general manager, the executive committee and the board each must know what they’re responsible for, have the authority to do what is necessary, and know what they will be accountable for.” The lack of role clarification is where there is often confusion within the private club structure.

“Roles must be articulated and then enforced,” Kapoor said. ”Problems invariably come up when volunteers feel they have the right to execute decisions affecting the club’s resources, yet they don’t have the authority to make the decision.”

What does Kapoor suggest? “The board and/or volunteers should be the ones setting the strategic direction, establishing club operating guidelines then ensuring management and/or volunteers are operating within the guidelines, and supervising, auditing and managing the GM or COO.”

The stewardship…the education and process of becoming an effective board member begins long before becoming a board member, and it’s a process that needs to be well developed and defined to ensure the club’s best candidates with the “proper” motives and skill sets are encouraged to run for directors’ positions.

Board members are part time volunteers, who while they may mean well, often have little understanding about the operation of a club, and the parameters of their role, their responsibilities, behavior and limits of their power.

Often there’s a lack of clarity of roles for both the board and its individual members. The board may see itself, and act unconsciously, as the club’s management, something not in the club’s best interests in these days of highly skilled paid managers.

There’s power in knowledge and information, but in the private club industry it’s also in the clubs best interests if the boards of directors also have the knowledge and information. It helps make the relationship between paid managers and the volunteer boards grow and prosper. Over the years this relationship for BoardRoom with managers and the boards has changed substantially. Where at one time paid managers might have been reluctant to pass along information they gleaned from BoardRoom, general managers now often provide a copy of BoardRoom for every board member.

The information and knowledge helps these clubs operate more effectively, especially in knowing how other clubs have faced and dealt with various issues.

“Educating board members about their roles in the governance of the club is what’s needed,” says Kurt Kuebler, partner in the private club executive recruiting firm of Kopplin Kuebler, LLC.

“Certainly, as part of that educational process, there should be a thoughtful outline of standards that they should conduct themselves by, as well as how they go about the business of the club.

“Normally it’s a clearly defined framework of roles, responsibilities, goals and objectives, highlighting where their responsibilities begin and end; what they can and should not do in their roles – explaining how they are in a ‘fishbowl’ and that what they say and do, can often be viewed as speaking for the board whether it be in deeds, words or actions,” he explained.

Kuebler, who visits dozens of clubs throughout a year, says, “most times with high performing club boards, we’ve seen very thoughtful orientations and educational sessions, even before someone is considered for board service. It sets the expectations and lets you know what you’re getting into and whether or not you want to be part of it.”

In other words, decision time for potential board members. So why is it so important to work with potential board members?

“One of the most difficult issues in participating on a board is the expectation of having to contribute to the operational aspect of the club,” commented Phil Harvey, founder and president, Venture Insurance Programs

“Boards today are expected to have a basic understanding of what makes the club function effectively, thus contributing their expertise and experience. Training and educating is important to ensure that new board members understand a club’s operational issues.

“In addition to the six operational areas of legal, financial, greens, house, membership and long-range planning, fundamentals that should be incorporated into board training (education) are transparency, ethical behavior and the ability to assume duties and positions of leadership with the utmost confidence to support their responsibilities.

“In addition, board members should understand the responsibilities of the committee they serve on and how to carry out their duties to fulfillment,” Harvey expressed.

Gordon Welch, president of Welch & Welch LLC, a leadership training firm, suggests getting an early start on this whole educational process.

“It should begin as a part of the new member orientation, and training should ramp up as a member becomes part of a committee,’ he explained.

‘Committee members should be selected for strengths and interests. As they progress through committee level the board should be developing future board members purposefully.

“Board members should have training either before or just after the election, and all board members must be required to attend. I recommend meetings including all department heads, CPA and financial professional, IT professional, strategy leader (consultant), insurance provider and attorney to the board – someone with ethics and rules of order (parliamentary) knowledge.

“Every department is as important. I find some board members learning more from the director of engineering or maintenance than they may the CPA. Each department should give a three-year history and a three-year forecast, including their area of the strategic plan and how it affects them,” Welch added.

“It is also very important to have IT in at the meeting to discuss security issues for the club/member information.”

A board orientation, at least as a minimum, each and every year is vital. With a board orientation, the club’s general manager and staff can impart vital information and knowledge about the club’s daily operations, strengths, weaknesses, challenges and opportunities.

It helps in the process of developing effective board members who in turn can help the board make diligent, insightful policy decisions affecting all members.

“Many clubs start this education in advance of someone even being considered for board service,” outlined Kuebler.

“More often, it is as soon as someone is elected and it should be reinforced every year…kind of a ‘CPR for one’s board and governance soul.’

“The educational process should provide a broad overview of the club, the roles of each key constituency, the strategic plan, the financials and should include a full tour of all facilities as well as an opportunity to meet all the key staff members,” Kuebler added.

“The leadership needs to assess the new board members’ passion and knowledge. Clubs today must be run as a business, not as your grandfather’s ‘playground’ type of club,” Welch emphasized.

“If there is no training (educating) the club leadership has no direction, no basis for decisions. Board members need historical information, direction and the governance side of knowledge.”

It also means the fundamentals of running a business must be front and center.

“Just because it’s a club doesn’t mean that we should throw those fundamental successful business practices out the window and run things on emotion, without facts or metrics or think that board service means advocacy only for the group or members or areas/activities of the club that we use, “ Kuebler advocated.

“A board member is there to consider the greater good; that is clearly what a thoughtful, beneficial education should start with!”

PUBLISHER’S FINAL THOUGHTS

So to reiterate, “a board member is there to consider the greater good.” That is where a thoughtful, beneficial education should start.

In reality, education and training is one of the biggest challenges private clubs face today.

Often without a clear understanding of their role, board members assume they should roll up their sleeves and do

what they do best – get things done. But for eons, micromanaging has been the scourge of private club management…with board members continually sticking their fingers into management’s pie. Undoubtedly, a lack of a proper board members’ educational process can lead to micromanaging…a situation that arises because board members don’t have a clear understanding of their roles…because a club’s board has failed to develop polices or procedures and properly delineating appropriate roles for staff versus the board.

However, through collaborative governance, boards establish policies and procedures and clearly define which decisions belong to the board and which belong to the management. Board members are aware of who does what, when, how and why. Of course, both the board and the club’s management are on the same team…not opponents.

Boardroommagazine has created BoardroomInstitute (BRI) to help prepare the board to govern properly, and to help deal with micromanaging and other intrusions from board members into the club’s daily operation.

BoardRoom’s board member education, training and orientation focuses on collaborative governance and is available through our online interactive education process conducted by leading industry experts.

I have seen many full day board member orientations, overnight board retreats and short one or two-hour orientations, and in this case, I believe less is more.

BoardRoomInstitute gives your board members (both new and returning) and committee members the basics. BoardroomInstitute educates and trains them about the private club industry, their fiduciary responsibilities, and their roles as chair and members of the clubs’ various committees including membership, green, finance, insurance, house committee and more.

Collaborative governance is the main message…whereby the board of directors has established the club’s policies and procedures, where board members understand their roles and responsibilities; and how to work with the club’s GM/COO, who as the club’s paid manager, runs the club on a daily basis.

From an informational point of view, BRI also keeps track of who has seen and worked with the education modules relevant to them. BoardRoomInstitute online is easy to use. Each module runs less than five minutes, something board members can do on their own time.

To view BoardroomInstitute, visit BoardRoomMagazine.com. Click on BoardroomInstitute. Watch the introduction and click to learn more. Call me if you have any questions (949) 376-8889. It’s the process leading to stronger, more relevant governance for your club.

At least that’s the way I see it! BR

John G. Fornaro, publisher

If you have comments on this article or suggestions for other topics, please contact John Fornaro at (949) 376-8889 or via email: johnf@apcd.com

The education process begins years before the member sits in the boardroom. We don’t “train” future board members we grow them. We stimulate their curiosity about and their understanding of “The Why of The Beach Club”, about “The There, which is The Expression of The Why” and “The How of Translating Vision into Reality.”

Over the years while Those With Potential are in the “minor league”, serving on committees, we give them lots of “meat issues” to chew on and lots of meetings to do the chewing with lots of conversations, laughter, reviewing, mentoring and reflecting, all the while getting a dose of The Buzz for The Club…and education just seems to happen.

We believe that the “education” of a board member starts earlier and takes years of experiencing and listening and talking and “educating” to get someone ready to make policy decisions that will impact this and future generations of BCers. The process is stimulating, fun, meaningful and exciting. And we have no difficulty getting fabulous people to serve—-to commit their time, energy and intellect—- because our educational process is a stimulating journey into the very heart of The Beach Club Culture.

So here’s our process, consuming up to 10 years before those with potential are selected for board service.

Step One: Identify “The Why” and “The There.” Before you can select the right people to cultivate and educate, you’ll need to clearly identify The Why – that is, the reason your club exists. For us, it’s all about relationships and community – and all the stuff that’s needed to bring people together so they can develop relationships and community.

Once you’ve got The Why you’ll need to identify The There, that is, where you’re heading in the future to satisfy The Why. For example, here at The Beach Club we’re evolving to address the needs of a future generation hungry for relationships and community. We need people who buy into our and can help us get There from Here.

Step Two: Identify talent. Clubs have talented people within the club community. Knowing who to “educate” and to “cultivate” requires knowing who’s needed to make “club happen.” Job One is to identify members out there in the club community who have The Why of the club in their genes and have the tools and the talent to help us build our Beach Club Tribe. To do that the club needs scouts, members who are serving or have served on boards and committees and senior managers who interface with members on a day-to-day basis, who can identify potential.

We further expand our “search” by gathering the names of people who’ve expressed an interest in serving on a committee. For us, that’s a huge pool of talent because ours is a service centric club environment (that is, it’s commonly understood that you have to give back to back to the community that’s given to you). If your governance

process is stimulating and meaningful – and the word gets out that it is – people will want to serve for The Buzz doing committee provides.

Step Three: Put those with potential on committees that reflect their strengths and interests. Chairs present their slate of candidates to the board and the board gives the green light for a given member to serve on a given committee. The collective intelligence of the board is useful in assigning people to the right committee.

Step Four: Start educating the newbies. The first committee meeting of the administrative year starts with The Orientation to Club Governance. This involves a generic overview of the governance structure – who makes decisions and who administers them. Then there’s a review of the committee process in general and that committee’s responsibilities specifically.

After this overview, the big clubs issues – the global club issues requiring input from every committee are discussed. Then specific issues this committee addressed in the prior year are discussed before the key issues for that committee in the coming year are detailed.

That’s the “academic” part of the educational process. Once a year. Useful to newbies and oldies on the committee.

But that’s not where most of the “learning” takes place, because most learning doesn’t happen in a classroom but “in the trenches”, solving real problems and addressing issues of consequence to the club community.

The learning and the educating take place during the process of identifying problems, researching, debating, deciding what to do; then observing how it got done and whether the decision should be done differently the next time.

Most learning is organic that is, it isn’t in a straight line, isn’t a linear experience as “professional educators” do when “training” somebody. These are clever people and they learn best when engaged in substantive conversation making decisions with impact. They want to learn by doing, then reflecting on what got done. Education that’s experientially driven, that’s action focused is remembered.

Background info is needed to make good decisions. The manager is responsible for preparing the committee to discuss issues of consequence” with White Papers, Annotated Agendas, relevant articles and industry insights – then facilitates the discussion.

The manager isn’t the coach. That is, they don’t TELL the committee what to do. Rather the manager is the Mentor That is, they give advice and insight and the committee makes the decision about what to recommend to the board.

Step Five: Select the right people for the board based on the needs the club has right now. Here at The Beach Club we believe you “ain’t ready for the board” unless you’ve served on lots of committees for lots of time in the previous 10 years, and have distinguished yourself with your engagement, your balanced judgment, your input, the

quality of your articulation, and your deep and passionate caring for The Why and The There

We believe in the Noblesse Oblige system of governance. We have three board openings each year, the Nominating Committee, consisting of the three most recent past presidents, selects them, get their commitment, have the members vote on the best three for the three openings (an easy choice!) and the board newbies are in.

Step Six: Learn by observing. The “candidates” are invited to attend board meetings as “observers” one or two months before they’re actually voted onto the board. At that time they’re put on the “board mailing list” and asked to read the Weekly Board Update, which the manager writes discussing everything happening at the club; and they read the various documents sent to the board in advance of the monthly board meeting (Annotated Board Agenda, issue specific White Papers, the monthly financials, the Variance Report).

By attending the board meeting they’re able to observe the give and take between board members. Learning by observing. Learning by engaging in a spirited verbal exchange. Learning simply by “being at the table.”

Step Seven: Board specific orientation. Before being voted in by the membership, the newbies are invited to the formal orientation given by the incoming president, the outgoing president, the general manager and any interested senior staff or board members who choose to attend. The same “orienting” takes place as they’ve already experienced at the committee level, although now all the issues are now board specific policy issues.

The Newbies are then given a refresher course in governance – who makes decisions, who administers them and who enforces the decisions made. They review the committee process then address the big issues for the coming year needing input

from all the committees. The key issues are highlighted and some basic background to each is provided.

And they’re told, over and over again about The Big Four: Be curious, ask questions, read everything and speak up.

The orientation loosens their brains and makes them sponges of knowledge!!!

Step Eight: Continuing education. The orientation is the jumping off point for a newbie’s real education: Doing Board. Each day they’ll be getting email updates from the manager on issues of consequence. Each Sunday morning the newbie will get The Board Update with comments on everything that’s happening. Each month the newbie will sit with the GM and review their committee’s agenda, ask their questions, draw on the experiential resources of the manager, accept their mentoring.

They’ll conduct their committee meetings, listen, research, argue,

engage, facilitate. Then they’ll get background readings for the board meeting –White Papers providing background information on action Items, an Annotated Agenda, which gives an “upbrief” on each of the agenda items.

Then they engage in animated exchanges with the senior board members and senior management team. The president forces them to contribute by asking them questions, asking them for opinions, asking them to clarify their committee’s recommendation. They’ll absorb ideas, issues, and insights organically – no classroom required, no volumes to read. And the learning process continues –forever.

And the process works – at least it does here at The Beach Club Santa Monica!!!

And enjoy the journey—- BR Gregg Patterson is general manager of the Beach Club of Santa Monica and a regular contributor to BoardRoom magazine.

Brown Is The New Green

Whether you like it or not, your old recycling program has taken on a new life. The time of “brown” has arrived.

This new approach means not only a recycling program but also acting responsible by saving resources, and WATER is the main one for most of our golf courses and grounds these days.

Unless you’re lucky enough to have your own wells that can pump out the required 325,000,000 gallons of water to cover the 200acre course, the need for “brown” has taken on a new life.

The old feeling of being green by attitudes of energy saving and being green by keeping your facility and business clean and not

The key is to get everyone on the same thought in mind - Brown is the new Green. Let’s start with the members and customers. They are expecting us to be brown. Instantly. Yes, we have been recycling on the back loading docks, rear offices and the kitchens of our clubs, but we have not made it apparent to the members.

wasteful, are still important - now more than ever. The members at the private club are watching, and the customers in your business are watching too.

The “Y” generation you’re now employing demands it and the “Z” employees now hitting the scene (Z = zippers who live and thrive on iPhones and snap-chatting) are really resentful of those of us left.

Then there’s the boss - clamoring to save some cash. And nowadays, the water bill is

full of green, if you know what I’m talking about.

The key is to get everyone on the same thought in mind - Brown is the new Green.

Let’s start with the members and customers. They are expecting us to be brown. Instantly.

Yes, we have been recycling on the back loading docks, rear offices and the kitchens of our clubs, but we have not made it apparent to the members. Sure, they may see the green dumpster by the loading dock, if you’re lucky enough to have a dock in plain sight (I hate it when that happens - how come some of the nicest clubs have their garbage cans in the front yard?). This is a place to take advantage for sure.

In many businesses and in many of our old clubhouses, poor delivery entrance placements, which are now right at the front or in your face when you drive up plague clubhouse designs. Still there’s room to take advantage of those front-placed delivery entrances.

I’m not suggesting huge signage or bright green containers. You have to look at yours and decide what your culture would endure. But getting the obvious placement of a “brown” statement will be crucial to get your people on-board – customers and staff alike.

Is there a way to change the lawn for sustainable ground cover? Stop washing those sidewalks down. Brown is a good green display. Energy savings signs help too. Whatever it takes to make it apparent that you’re making an effort.

The boss is looking for some help - you can count on that. The real deal, though, is to make sure it saves money and is still projecting a “brown” statement to the customers and the staff. It may cost some money, and you have to be okay with it.

This is where a leader can really shine. It is a critical time for focused leadership. Posting a sign and declaring a dictatorial decree is not what I’d recommend.

CHRIS BOETTCHER

The

younger generation will be very excited to see you care so much about their future and the Baby Boomers on your team – the ones always looking for the right way to do it – will appreciate the savings in resources, time and money. And all that hype is good and helpful, notwithstanding that it is the right thing to do for our environment and our industry sustainability.

Have a fun meeting: Challenge your safety committee; create a resources committee to take part ownership; maybe you have a staff social group or some vocal customers and vendor/partners as part of your brown team. Make sure they are all on-board and supportive of the purpose.

Advising them why we do what we do it is important but keeping involved while they brainstorm on ways to go brown is a sure fire way to get buy in while keeping a finger on the pulse. Once ready, call an “all staff” gathering. Bring an example of saving resources: 10 gallons of water equals a one hundred person banquet pre-set with water. Pile recyclables into the meeting room to emphasize saving resources. Show what we used to do versus what we’ll need to do now to become the new brown! Make it a happening.

The younger generation will be very excited to see you care so much about their future and the Baby Boomers on your team – the ones always looking for the right way to do it – will appreciate the savings in resources, time and money.

And all that hype is good and helpful, notwithstanding that it is the right thing to do for our environment and our industry sustainability.

Not only will a brown approach work, you can use the same approaches on introducing the new cleaning materials in the facility; the new table sanitizer at the employee meal tables and the pool snack bar, or even the new laundry detergents in your housekeeping areas.

No matter what business you are in or what the product is that you sell, the staff buy-in and participation are crucial to not only go brown but to stay brown BR

Christopher Boettcher is the GM/COO at Burlingame Country Club near San Francisco, CA and a regular contributor to BoardRoom magazine. He can be reached at chris@boettcher.com

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Tel: (800) 969-8008 Fax: (214) 351-2609

Website: www.sportssolutionsinc.com

Email: sales@sportssolutionsinc.com

Contact: Laurie Schmidt

Labeling

Planglow

899 Montreal Circle Saint Paul, MN 55102

Tel: (800) 774-0536 #1

Website: www.Planglow-usa.com

E-Mail: jason@planglow-usa.com

Lockers

Salsbury Industries - Lockers.com

1010 East 62nd Street

Los Angeles, CA 90001

Tel: (800) LOCKERS Fax: (800) 562-5399

Website: www.Lockers.com

Email: Salsbury@Lockers.com

APCD ASSOCIATE MEMBERS & SPONSORS

Outdoor Furniture

Bambrella

6464 East Rogers Circle

Boca Raton, FL 33487

Tel: (561) 288-8655

Website: www.Bambrella.com

E-Mail: info@Bambrella.com

Xhibtz Contract Furnishing

11071 Indian Lake Circle

Boynton Beach, FL 33437

Tel: (954) 614-1505

Fax: (888) 880-9124

Website: www.xhibtz.com

Email: xhibtz1@bellsouth.net

Purchasing Group

Essensa

555 West 57th St., 12th Floor

New York, NY 10019

Tel: (866) 430-5330

Website: www.Essensa.org

E-Mail: essensainfo@essensa.org

Research & Data

Club Benchmarking PO Box 2082

New Castle, NH 03854 (603) 553-8958

Signage

Signera

20140 Scholar Drive, Suite 314

Hagerstown, MD 21742

Tel: 877-998-7446 ext. 10

Fax: 301-850-3353

Website: www.signera.net

Contact: Michael Sparks

Software Developers

Culinary Software Services

1900 Folsom Street #210 Boulder, CO 80302 (303) 447-3334

81

Club Design Associates.

Elite Club Services.

Eustis Chair.

Event Equipment Sales.

Spa

Luxury Spa Sales

6601 Lyons Road, Suite D8

Coconut Creek, FL 33073

Tel: (800) 220-8646

Website: www.LuxurySpaSales.com

E-Mail: Spa@LuxurySpaSales.com

Technology

FOOD-TRAK®/System Concepts, Inc.

15900 N. 78th Street

Scottsdale, AZ 85260

Tel: (480) 951-8011 x 8026

Fax: 480-951-2807

Email: nancys@foodtrak.com

Website: www.foodtrak.com

Contact: Nancy Shina, director of marketing

Northstar 161 Kimball Bridge Road #200 Alpharetta, GA 30009

Website: www.globalnorthstar.com

Ferry, Hayes & Allen Designers.

FOOD-TRAK.

Gab Robins.

Gasser Chair.

McGladrey.

Tableware/Menus

Polar

2046 Castor Avenue

Philadelphia, PA 19134

Tel: (800) 831-7823 Fax: (215) 535-6971

Website: www.the-polar.com

Email: bradk@the-polar.com

Contact: Brad Karasik

Walco Stainless/Utica Cutlery 820 Noyes St. Utica, NY 13503

Tel: (800) 879-2526 Fax: (315) 798-3757

Email: susan@uticacutlery.com

Website: www.uticacutlery.com

Contact: Susan Martin

Uniforms

High End Uniforms 5442 Gateway Plaza Drive Benicia, CA 94510 (707) 746-7011

McMahon Group.

Peacock + Lewis.

Planglow.

95

61 clubsystems group.

Clubtec.

CMAA

Creative Golf Marketing

Crown Verity.

DEI Kitchen.

Denehy Club Thinking.

Distinguished Emerald Clubs.

Distinguished Gold Clubs.

Duffy’s Tri-C Club.

15

28-29

57

81

97

53

87

89

45

GCSAA.

Grigg Brothers.

GSI Executive Search

HFTP

High End Uniforms.

HINT Interiors.

James G. Rogers.

Judd Brown Designs.

KemperSports.

Kinon.

Kopplin & Kuebler.

BOARDROOM MAGAZINE COUNTRY CLUB INDEX

Phil Bayne, fitness director,Delaire Country Club, Delray Beach, Florida

Chris Boettcher, GM/COO, Burlingame Country Club near San Francisco, CA.

John Crean, GM, Broken Sound Club, Boca Raton, FL.

Barrett Eiselman, GM/COO of Silver Creek Valley Country Club

Darrell Elfeldt, president, Desert Highlands Golf Club Association, North Scottsdale, AZ

Stephania Feltz, member relations director, Sarasota Yacht Club, Sarasota, FL

Judge Darcy Goodman, president, Desert Highlands Golf Club Association, North Scottsdale, AZ

Joanne Hruska, president, The Glencoe Golf and Country Club, Calgary, Alberta, Canada

23

53

32-33

67

25

David W. Lacey, former board member, Philadelphia Cricket Club, Philadelphia, PA

Michael G. Leemhuis, president, Ocean Reef Club, Key Largo, FL.

Nancy Levenberg, member, Spring Lake Country Club, Spring Lake, Michigan

Doug Mair, president, The Glencoe Club, Calgary, Alberta, Canada

Eben Molloy, GM, Woodfield Country Club, Boca Raton, FL

MacDonald Niven, GM, La Rinconada Country Club, Los Gatos, CA

Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club

Gregg Patterson, GM, The Beach Club of Santa Monica, CA

Jim Smith, Jr. PGA director of golf, Philadelphia Cricket Club

Stone Mountain Golf Club, Stone Mountain, Georgia

THE PERFECT FIT FOR YOUR CLUB

JILL PHILMON, CCM, CCE

GM/COO - BALLANTYNE COUNTRY CLUB

PCPS in my opinion is a must have if you are hiring a membership or marketing professional! We used them to place our current director and I was so impressed with the level of quality we were offered in candidates. We were equally impressed with how well they were able to match personalities to my current team, plus they even add in training to make sure they are fully prepared. We were extremely pleased with the outcome.

ROBERT E. SERGENT, CCM, CCE

As a private club general manager with 30-years experience Professional Club Placement Services receives my highest recommendation. The dedicated industry professionals at PCPS seek first to understand your individual needs. Truly a customized approach, which results in candidates presented which meet the requirements you have established. The process is well devised and executed to exceptionally high standards.

PCPS understands the pain, stress, time, and money associated with posting ads, sorting through resumes, interviewing candidates and making decisions to fill an opening among your team, which is why our placement experts are fully committed to making this transition as smooth and professional as possible for you and your club