BoardRoom magazine January/February 2017

Th e Bo a rd Ro o m ma ga zin e

CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 268

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VOLUME XXI JANUARY/FEBRUARY

Vo lume XXI, Ja n ua r y/F eb rua r y 2017

10 | PUBLISHER’S PERSPECTIVE

106 | MEMBERSHIP MARKETING

Do Boards Make Legal Mistakes?

Branding your Way to Success

68 | EXECUTIVE COMMITTEE

112 | BOARDROOM ON TOUR

Lessons in Leadership - Success is Not Accidental

The Pulse of the Industry with Orange County, CA Clubs

DAVE WHITE

EDITOR’S NOTE

Dave White is the editor of BoardRoom magazine. If you have comments on this article or suggestions for other topics, please send Dave an email to: dave@boardroommag.com.

It’s recognition time again and this year a tip of the hat to Fred Arbuckle and Matt Kellogg as BoardRoom magazine launches its 21st year of publication!

Arbuckle and Kellogg share the honors as BoardRoom’s Distinguished Private Club Presidents this year…along with 22 other Club Presidents of the Year for 2016.

Volunteer boards of directors and club presidents must set the tone and tenor for what happens at their clubs and it’s this vision and mission that BoardRoom recognizes with the top club president awards.

It’s the club boards and presidents who must have the vision and set policy for general managers, and it’s the GMs who must make that policy (along with their own vision) work every day.

Micromanagement be gone! And that’s precisely the case with the outstanding selections this year.

It’s an anomaly with President Arbuckle…the first time a president of two clubs, both going through transitions from developer-owned to member-owned, has been selected as a BoardRoom’s Distinguished President.

It’s been a major accomplishment for Arbuckle who has served as president of The Bridges of Santa Fe, CA and 3 Creek Ranch Golf Club in Jackson Hole, Wyoming.

President Arbuckle is featured in our cover story this issue.

President Matt Kellogg, Boardroom’s second Distinguished President for 2016, has a unique story to tell…of when the Colorado Golf Club in Parker, Colorado, a few years ago began seeking a new direction and some financial stability.

President Kellogg, with his passion for the club and a collaborative leadership style, gathered a group of 35 members who purchased the club from the previous owners, which allowed members to enjoy the club without the financial strain of interest payments on a bank loan.

The club has seen a significant growth in membership and additional amenities which complement the ‘world class golf course.” President Kellogg will be featured in the cover story of our July/August issue.

The other top presidents will be featured in BoardRoom stories throughout the year.

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BOARDROOM | JANUARY/FEBRUARY 2017

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Recognition is important in the private club industry… and it’s always been at the top of BoardRoom magazine’s list because of our focus, commitment and mandate to educate and inform boards of directors and general managers.

It’s what we do every BoardRoom issue.

For many years now BoardRoom has acknowledged the private club vendors who are best in their field – those people and companies providing sterling services, products and goods to clubs – with our annual BoardRoom Excellence in Achievement Awards presentations. And we’re doing so again this year.

And a special shout-out to Lynne LaFond DeLuca, founder of the Association of Club Catering Professionals (ACCP), for her BoardRoom Award recognition as the Gary Player Educator of the Year.

ACCP is a one of a kind…an association that fills a niche market within the private club industry.

“It happened ‘organically’, as others asked me to share the techniques and methods because of the results I was getting at my own clubs,” espoused Lynne.

Her association grew to a regional level and then the national level as there’s been a realization of the need for education, specifically for the catering and events segment at private clubs.

Of course, it’s also important for the fact that catering revenues are often among a club’s highest revenue generator, after dues, and the impact this department can have on a club’s members experience, club perception and of course, membership retention.

Congratulations Lynne for your vision and passion for the private club industry. BR

Publisher/CEO

Co-Founder/CEO

John G. Fornaro

John G. Fornaro

Editor/Co-Publisher

President

Dave White

Keith Jarrett

Assoc. Editor/VP Creative/Co-Publisher

Chief Analyst

Heather Arias de Cordoba

APCD Executive Director Bill Thomas

Frank Gore

Chief Information Officer Jeff Briggs

Editorial & Marketing Director

Executive Director

Dee Kaplan

Bill Thomas

Account Manager

Contact Information

Dina Alleluia-Carr

Contact Information

www.DistinguishedClubs.com (949) 376-8889

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

Subscriptions and Website Heather Arias de Cordoba www.BoardRoomMagazine.com (949) 365-6966

Featured Columnists Rick Coyne Henry DeLozier John G. Fornaro

Bonnie J. Knutson Nancy M. Levenburg Jerry McCoy

Kevin F. Reilly Bill Schwartz Thomas B. Wallace

Helaine S. Weissman Dave White

Lynne LaFond DeLuca Kevin Lichten Steve Mona Peter J. Nanula Tom Neill MacDonald Niven Kathy O’Neal Gregg Patterson Steven Poe Rosie Slocum Craig J. Smith Rick Snellinger

Robyn Stowell Mitchell L. Stump Richard Tiedemann Frank Vain Bruce R. Williams

Contributing Writers Heather Arias de Cordoba Chris Boettcher Bill Boothe Peter Cafaro Lisa Carroll Steve Chamberlin Michael Chase Ronald F. Cichy Addison Craig Rita B. Craig Michael Crandal Dave Doherty

Todd Dufek John Embree Rhett Evans Kristofer J. Fair Daniel J. Farrell Walt Grassl Steve Graves Matt Guzik Kelley Harris Rob Harris Larry Hirsh Jeremy Hoch Rick Ladendorf

Endorsements, Strategic Partners and Allied Associations

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 268 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. 1 or fax (949) 376-6687, email heather@boardroommag.com or johnf@apcd.com or visit the website at www.BoardRoomMagazine.com.

C O N T E N T S | J A N U A R Y/ F E B R U A R Y 2 0 1 7

PUBLISHER’S PERSPECTIVE | 10

CASE STUDY | 12

FOOD FOR THOUGHT | 14

DO BOARDS MAKE LEGAL MISTAKES?

THE DEVELOPER LEGACY – EQUITY REFUNDS

THE PATH TO PERFECTION - PART IV

To err is human, so how does that relate to boards of equity, non-profit, private clubs.

Well, mistakes that private club boards make are often considered ‘sacred cows’… the less said about them the better. But it’s important to understand the legal implications and impact mistakes can have upon the successful operation of a private club.

RICK COYNE

Now we take the final steps on the path to perfection, which deal with culinary processes used to identify and reduce variance. Waste control and over-portioning represent the most significant percentage of variance. In addition to policies associated with getting maximum prep yield and identifying waste through visualization techniques.

CLUB FACTS & FIGURES | 16

WINNING STRATEGIES | 18

BOARDROOM BASICS & BEYOND | 66

LEASE ASSETS AND LIABILITIES

THE TICKING CLOCK SYNDROME

KEVIN F. REILLY

J E R RY M CCOY

LEVERAGE YOUR TEAM THINK AND BUILD TRUST

HEL A INE S. WEISSMAN

THOMAS B. WALL ACE

It is very common for clubs to lease a wide range of equipment from golf carts to mowers for the course. The rules regarding the accounting treatment of leases for all companies, including clubs, will change for fiscal years beginning after December 15, 2019.

Think about setting the alarm on your clock. It ticks down until the time and then goes off loudly. This concept of alarms is another way of understanding expectations. They are especially crucial in the service industry. We have to recognize them and manage our clubs to this concept.

PLIGHTS AND INSIGHTS | 86

MEMBERSHIP MUSINGS | 92

GLOBAL PERSPECTIVES | 122

MARKETING TO SINGLES THE NUMBERS ARE LARGE AND GROWING

STOP THE WORLD I NEED TO CATCH UP!

OODA LOOP THE ANSWERS LIE IN THE PROCESS

BONNIE J. KNUTSON

HENRY DELOZIER

NANCY M. LEVENBURG

Did you know that the first tweet was sent in 2006, a mere decade ago? It took three years before the billionth tweet was sent; yet today it takes less than two days for a billion to fly through Twitter. And if you have any teenagers around, it will come as no surprise to you that Snapchat has now passed Twitter in daily use. News Flash!

The world has changed. Most of us haven’t.

Private club boards struggle to be the agents of effective change. Their ineffectiveness is borne of motivated members drawn to a personal agenda or who lack a clear understanding of how private clubs should be governed.

Private club boards that want to improve their effectiveness should follow what’s known as the OODA Loop.

JOHN G. FORNARO

Between 1999 and 2014, the number of single-person households increased to about 34.2 million from 26.6 million, an average annual rise of 1.7 percent. That’s a higher growth rate than the growth in total households (which means that the percentage of single-person households among all households has risen).

This might not be for every one, but it addresses one of the critical issues facing community oriented and even freestanding clubs today – how to deal with equity refundability. I call it the developer legacy not because I want to pick a fight with developers, but because it’s an accurate description of how many clubs today are faced with a dilemma.

BILL SCHWARTZ

Leadership doesn’t come with warning labels. So leaders have to be risk takers and believe in their vision. Many organizations, especially clubs, are risk adverse, but taking chances on creative programing, processes, amenities and offerings, can propel you to new heights. Anybody remember New Coke? Bad idea? Maybe. But did it ultimately hurt or help the Coke franchise?

Leaders in F&B Innovation

MICHAEL S. WHEELER, CCE, CCM

MATT MCKINNEY, CCM

JAY DIPIETRO, CCM

ROBERT E. JONES, CCM, CCE

MICHAEL G. LEEMHUIS, CCM, CCE, PGA

COO and General Manager Cherokee Town & Country Club Atlanta, GA

COO and General Manager Capital City Club Atlanta, GA

President and General Manager Boca West Country Club Boca Raton, FL

COO and General Manager Desert Mountain Club Scottsdale, AZ

President Ocean Reef Club Key Largo, FL

CRAIG L. LOPES

BRAD JENCKS

NICK SIDORAKIS, CCM

PHIL KIESTER, CCM

BRETT MORRIS

General Manager The Moorings Yacht & Country Club Vero Beach, FL

General Manager Waialae Country Club Honolulu, HI

COO and General Manager Southern Hills Country Club Tulsa, OK

General Manager The Country Club of Virginia Richmond, VA

COO and General Manager Polo Club of Boca Raton Boca Raton, FL

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.

Find out more. Call us at 800-553-2438.

Or just ask them!

FOOD AND BEVERAGE MANAGEMENT SYSTEM

PROCUREMENT • INVENTORY • CULINARY CONTROL

http://www.foodtrak.com

SECTIONS

DEPARTMENTS

TECHNOLOGY PERSPECTIVES. . . . . . . 38

ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 20

By Bill Boothe & Jeremy Hoch

By Dave White

Cover Story - Fred Arbuckle BoardRoom magazine’s Distinguished Club President for 2016

Software Replacement Versus Re-engineering Assessment

ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 26

ON THE FRONTLINES. . . . . . . . . . . . . . 76

New Zealand’s Tara Iti Golf Club It’s a Super Yacht Luxury Experience

2016 Top Private Club Presidents of the Year

By Matt Guzik

CULINARY AND CATERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Bring on the Club Event Innovation

ON THE FRONTLINES. . . . . . . . . . . . . . 78

By Lynne LaFond DeLuca

Elements of Success

By MacDonald Niven

THOUGHTS ON THE CLUB INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Health Benefits of Golf Are Many

ON THE FRONTLINES. . . . . . . . . . . . . 80

By Steve Mona

Looking Beyond the Paper A 2016 GM Transition

TENNIS COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

By Michael Chase

Lake Nona to be Epicenter of U.S. Tennis

By John Embree

ON THE FRONTLINES. . . . . . . . . . . . . . 81

Inclusive or Exclusive The Ugly Issue Facing Private Clubs

GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

The 2017 Golf Industry Show Offers Something For Everyone

By Kristofer J. Fair

By Rhett Evans

EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

ON THE FRONTLINES. . . . . . . . . . . . . . 82

Blue Jeans: The Crossroads of Tradition and Change

By Robert A. Sereci

Questions With CMAA’s Advocacy Chairman, Brian Kroh

COMMITTEES

GOLF DISPUTE RESOLUTION. . . . . . . 89

Damages Assessed for Errant Golf Balls

By Rob Harris

FINANCE COMMITTEE. . . . . . . . . . . . . 30

EXECUTIVE COMMITTEE. . . . . . . . . . . 68

GREEN COMMITTEE. . . . . . . . . . . . . . 116

By Mitchell L. Stump

By Frank Vain

By Rosie Slocum

Teaching Members Games They Play?

Lessons in Leadership

Do You Have All Your Ducks In A Row

TRIBAL MAGIC. . . . . . . . . . . . . . . . . . . 90

Married to Clubdom

By Gregg Patterson

FINANCE COMMITTEE. . . . . . . . . . . . . 32

EXECUTIVE COMMITTEE. . . . . . . . . . . 70

GREEN COMMITTEE. . . . . . . . . . . . . . 117

By Peter J. Nanula

By Ronald F. Cichy

By Bruce R. Williams

Dangerous Illusion of Real Estate Value

Understanding Millennials

Fleet Management Is Necessary

DISTINGUISHED IDEAS. . . . . . . . 104-105

Brookside Golf & Country Club St. Andrews Country Club

HISTORIC COMMITTEE. . . . . . . . . . . . 34

EXECUTIVE COMMITTEE. . . . . . . . . . . 72

GREEN COMMITTEE. . . . . . . . . . . . . . 118

By Tom Neill

By Rita B. Craig

By Dave Doherty

INSIGHTS. . . . . . . . . . . . . . . . . . . . . . . 110

WINE COMMITTEE. . . . . . . . . . . . . . . . 40

EXECUTIVE COMMITTEE. . . . . . . . . . . 74

By Steven Poe

By Larry Hirsh

By Heather Arias de Cordoba

The Difference Between Surviving and Thriving: Staying Ahead of The Curve

By Michael Crandal, CNG

Wall of Wonder - It’s Time to Start!

Roll Out The Barrel

Leadership in a Time of Change

The Politics of Clubs

HR COMMITTEE. . . . . . . . . . . . . . . . . . 42

LEGISLATIVE COMMITTEE. . . . . . . . . . 88

By Walt Grassl

By Robyn Stowell

BOARDROOM ON TOUR. . . . . . . . . . . 112

To Lead Others, You Must Serve Others

By Heather Arias de Cordoba

WELLNESS COMMITTEE. . . . . . . . . . . 58

MEMBERSHIP COMMITTEE. . . . . . . 106

CLUB SERVICE. . . . . . . . . . . . . . . . . . . 124

By Rick Ladendorf

By Addison Craig

Orange Country, California Pulse of the Industry

To Show or Not to Show CMAA Show and Conference 2017

By Chris Boettcher

Purpose Driven Wellness Programs

2017 Your Most Efficient Club Year

Branding Your Way to Success

HOUSE COMMITTEE. . . . . . . . . . . . . . 64

MEMBERSHIP COMMITTEE. . . . . . . 108

By Lisa Carroll

By Steve Graves

F&B Is an Amenity, Not a Profit Center

The Initiation Fee Conundrum

INNOVATIVE IDEAS. . . . . . . . . . . 126-127

Chevy Chase Club Cherokee Town and Country Club

By Heather Arias de Cordoba

HOUSE COMMITTEE. . . . . . . . . . . . . . 65

MEMBERSHIP COMMITTEE. . . . . . . 109

By Todd Dufek

By Kathy O’Neal

Your Locker Room Manager ?

River Crest Case Study

Do Greens Need to Be Aerified?

CASE STUDIES C2 LIMITED DESIGN ASSOCIATES. 46-47 CHAMBERS. . . . . . . . . . . . . . . . . . . 48-49 FLORA SPRINGS WINERY. . . . . . . . 50-51 GRIGG BROS.. . . . . . . . . . . . . . . . . . 52-53 HINT | HARRIS INTERIORS. . . . . . 54-55 MAI. . . . . . . . . . . . . . . . . . . . . . . . . . 56-57 CORNILLEAU USA. . . . . . . . . . . . . . . . . 96 DEI FOOD SERVICE . . . . . . . . . . . . . . . 97 GSI EXECUTIVE SEARCH. . . . . . . . . . . 98 JUDD BROWN DESIGNS. . . . . . . . . . . 99 KECAMPS. . . . . . . . . . . . . . . . . . . . . . 100 LICHTEN CRAIG . . . . . . . . . . . . . . . . . . 101 POLAR. . . . . . . . . . . . . . . . . . . . . . . . . 102 SLIMFOLD GRILLS. . . . . . . . . . . . . . . . 103 GOLF INSURANCE BY EPIC. . . . . . . . . 119 HILDA ALLEN REAL ESTATE. . . . . . . . 121 REID CONSULTING. . . . . . . . . . . . . . . 123 SIGNERA. . . . . . . . . . . . . . . . . . . . . . . . 124

JOHN G. FORNARO

PUBLISHER’S PERSPECTIVE

John G. Fornaro is the publisher/CEO of BoardRoom magazine, co-founder/CEO of Distinguished Clubs and the CEO of the Association of Private Club Directors (APCD). 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

Do Boards Make Legal Mistakes?

If So, What Are They, and What Do They Do About It? To err is human, so how does that relate to boards of equity, nonprofit, private clubs. Well, mistakes that private club boards make are often considered ‘sacred cows’…the less said about them the better.

But it’s important to understand the legal implications and impact mistakes can have upon the successful operation of a private club. And the fact is when a board is clear about what it wants to do, and where it wants to go, the process becomes a lot easier.

So, if we accept the premise that private club boards do make ‘legal’ mistakes…what are they, and what can private clubs and their boards do about it.

Certainly, private club boards, committee and the club’s management make mistakes, but often what we call ’human errors’, mistakes that happen because we are human.

But it’s something quite different for boards to engage in ‘legal governance mistakes’, and for various reasons.

If this is the case, what can be considered a ‘legal mistake?” Depending upon whom you speak with, ‘legal mistakes’ vary.

“Boards tend to make decisions sometimes on a ‘shortterm and quick response basis’ without review as to longterm consequences on club operations and non-compliance with the club’s existing bylaws and membership agreements,” explained Randy Addison of Addison Law of Dallas, Texas.

“For example, a club experiences a loss of membership sales that a board attempts to fix with a “non-equity” or “modified equity” membership offering that lowers the value of club equity membership, and is not in compliance with existing bylaw requirements.

“Or, a board’s unilateral implementation of new programs, member rights, fees or assessments that are not in compliance with existing governing documents.

It’s crucial that boards provide oversight to the happenings in a private club.

Often tasks are delegated to board members, committees, staff or perhaps people hired for specific tasks. However, it’s a requirement of the board to make sure it provides sufficient oversight, meaning, the board must ensure that board policies and procedures are being followed.

“The biggest governance mistake is to obfuscate the role of the paid management (GM and department heads) with volunteer leadership (the board and committees),” expressed Tarun Kapoor, a private club consultant with Kapoor and Kapoor Consultants.

“When volunteers, board members engage in operational matters they risk affecting the club’s liability. Every operational decision has both financial and legal implications.

Volunteers should focus on establishing and enforcing guidelines to maximize efficiency and minimize liability.

“Human mistakes will prevail if the club’s governing documents fail to articulate roles and responsibilities as described,” he stressed.

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“Another issue,” Addison added, “is a board taking actions and not updating or amending the governing documents by the required actions, including a vote of the members, if necessary.”

This is certainly a point that resonates with others, including Michelle Tanzer, an attorney with GrayRobinson of Orlando, FL. “Attempting to change governance documents or membership agreements without following the formal requirements of amendment,” in Tanzer’s opinion is a legal mistake.

SEE PUBLISHER’S PERSPECTIVE | 129

RICK COYNE Rick Coyne is Managing Partner, Club Mark Partners, LLC He can be reached via email at rcoyne@clubmark.com.

CASE STUDY

The Developer Legacy – Equity Refunds This might not be for every BoardRoom reader, but it does address one of the critical issues facing community oriented and even freestanding clubs today – how to deal with equity refundability.

I call it the developer legacy not because I want to pick a fight with developers, but because it’s an accurate description of how many clubs today are faced with a dilemma.

Let’s start at the beginning. Why did equity become such an issue? Many reasons, but the most prevalent has been the developer’s need to sell ‘dirt’ using the country club amenity as an accelerator to the lot absorption process.

By offering equity, the developer removed the obstacle of membership cost, with incoming buyers envisioning a considerable portion of the membership investment as equity or even as an appreciable asset. In fairness, this was also a way in which the developer could fund the club assets without substantially increasing the cost of the dirt.

Over time, and in many cases as the club was turned over or purchased by the membership, an interesting phenomenon occurred. If the members purchased the club, their own equity, which likely paid for the asset development initially was not credited. In addition, they also absorbed that same initial equity as a long-term liability in the process. Again, in

ing entry fees, in many cases, would have meant going negative on money collected versus refunds to exiting members.

Conversely, some membership documents reflected that the refund would be predicated upon the “then existing” fee being charged by the club. That simple differentiation has spelled the difference between successfully navigating a changing market versus being handcuffed.

Another significant clause in equity relationships is the ratio of new treasury members joining until a resigning member will be refunded. In most cases that I’ve seen the ratio was four to one with the exiting member required to pay dues until they are replaced.

In the boom times of the 90s this seemed very reasonable, and again in support of the developer, no one could have seen how overbuilding and the crash of 2008 would affect membership growth and retention.

While these challenges have not affected all clubs, the overbuilding and market fall in 2008 did affect all clubs. With it came expense belt tightening and in many cases, reducing current entry fees, further exacerbating the plight of the equity club that promised a percentage of the initial entry fee paid. In a market where competition was brisk, clubs with handcuffs had a significantly greater challenge to survive.

If not already allowed, let the member transfer the membership with the sale of the home. As members age, to decrease attrition and reduce liability, begin to offer some amount of discount to monthly dues, by reducing their equity accordingly. fairness, as a sales tool for real estate, it was a brilliant plan.

But what happens 20 years down the road?

As different law firms began writing the membership documentation for emerging developer clubs, a great deal of latitude, naturally was granted to the developer to ensure stability of the operational entity. However, the differences in the way documentation was written had differing consequences for the members down the road.

An example is the club that guaranteed 80 percent refundability of the initial entry fee upon resignation. Sounds great to the buyer, but what happened when market conditions changed in 2008 and initiation fees began to drop around the country. Fundamentally, this clause handcuffed many clubs from reacting to the market conditions as lower12

BOARDROOM | JANUARY/FEBRUARY 2017

BRIDGE VERSUS LONG RANGE STRATEGY

For some clubs, there was the question of will the market come roaring back, will real estate prices be restored, and will second home buying resume a higher-level pace.

Some of these optimistic souls chose a bridge strategy until better times rolled back. Some initiatives included lowering entry fees to the refundable amounts owed those exiting resulting in zero capital formation.

Others allowed members to “lease” their membership until their name was first on the sell list. However, even as these tactics were employed the list of those wishing to exit and still paying dues until their membership sold, was increasing.

SEE CASE STUDY | 107

BILL SCHWARTZ

FOOD FOR THOUGHT

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.

The Path to Perfection:

Approaching the Perfect Food Cost - Part IV In this series, we’ve defined the concept of a perfect food cost, how to achieve the perfect food cost and maintain inventory management.

Now we take the final steps on the path to perfection, which deal with culinary processes used to identify and reduce variance.

Waste control and over-portioning represent the most significant percentage of variance. In addition to policies associated with getting maximum prep yield and identifying waste through visualization techniques (clear bins and trash containers), there is a need for collection of waste data for things that end up going down drains. There are two effective approaches to this problem.

First, culinary staff can be directed to stage items for drain disposal. This means not allowing kitchen staff to dump waste in the sink, and instead asking them to place these items on a table. The items would be examined and tallied on waste sheets before disposal.

Two suggestions seem to help with these issues. Testing the staff on portion sizes and recipes, and making sure written recipes are available for reference in the kitchen can make a significant difference. Demoing portion sizes – for example by placing the correct portion of fries on a plate and leaving it on the line for reference – can also provide visual cues for hand-portioned items. Adults learn better with their eyes than their ears.

Finally, the path requires reporting to identify variances and action steps to reduce or prevent them in the future.

Waste sheets are basically variance reports themselves.

Examining the waste and perhaps even extending the value and ranking items by waste cost may lead to approaches like adjusting batch sizes that can reduce these costs.

Key item variance reports can be produced easily for high value items like steaks and seafood. Even small variances in these items can be expensive. This is done by taking inventory and collecting purchase quantities of these key items at the end of each day, collecting quantity sold

One culinary process relates to over portioning. In most cases, over portioning results from a lack of education, lack of proper utensils or simple expediency.

How many line cooks know the correct portion for a side of fries, or the correct number of ounces of turkey on a turkey sandwich?

The second approach is the honor system, where kitchen staff can dispose of these items, but only after writing them down on the waste sheet themselves. In both cases, the objective is to document this type of waste for subsequent analysis. In many cases, the same types of things are dumped each day, allowing for waste sheet templates to be developed listing these items with blanks for filling in quantities. Waste sheets are critical elements of the path.

The other culinary process relates to over portioning. In most cases, over portioning results from a lack of education, lack of proper utensils or simple expediency. How many line cooks know the correct portion for a side of fries, or the correct number of ounces of turkey on a turkey sandwich? How many know the correct recipe for a batch potato salad?

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information for any menu item that uses these items, and calculating the actual and ideal usage.

My next article, while not part of this series will address the calculation of key item variances specifically. Tracking this variance information on a daily basis and developing action steps to reduce or eliminate them will help get food costs closer to the perfect level we strive for.

Following the principles and practices outlined in this series will give you the best shot – short of implementing an automated system – at approaching your perfect food cost!

If you need a copy of the earlier parts of this series, send me an email. BR

KEVIN F. REILLY

HELAINE S. WEISSMAN

CLUB FACTS & FIGURES

Are You Prepared To Recognize Assets And Liabilities For Almost All Your Leases?

It is very common for clubs to lease a wide range of equipment from golf carts to mowers for the course.

The rules regarding the accounting treatment of leases for all companies, including clubs, will change for fiscal years beginning after December 15, 2019, and while the date may seem far off, now is the time to start thinking about longerterm impacts before entering into new leases over the next few years. What does this really mean for clubs? All of your leases for equipment, golf carts, utility vehicles and automobiles will likely fall under this new standard. So sharpen up your spreadsheet skills and let the fun begin. More importantly, the club must be proactive with its lenders because the change in treatment will impact your financial covenants.

The standard defines a lease as a contract for an identified asset, ether explicitly or implicitly, and the vendor should not have a substantive right of substitution of the asset. The club must have use and control of the leased asset, and it must have substantially all of the economic benefits from directing the use of the leased asset.

Once you have determined that you are a lessee, the next question is whether it is a finance or operating lease. This is important to a club since an operating lease is an expense while a financing lease must be capitalized.

• You have a financing lease if one of the following criteria is met: - Ownership transfers to you by the end of the lease term, or - You have an option to purchase the leased asset and exercise of this option is fairly certain, or - The lease term makes up a majority of the leased asset’s remaining economic life, or - The sum of the present value of the lease payments is equal to or greater than substantially all of the leased asset’s fair value, or - The leased asset is so specialized in nature that it is expected to have no alternative use to the lessor at the end of the lease.

• You have an operating lease if: - None of the above criteria are met.

While generally, we do not get very technical in these articles, it is important to know how these changes will be reflected in the financial statements.

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For a finance lease: • The statement of financial position (balance sheet) will have an asset identified as a right-of-use (ROU) asset and a lease liability (initially the present value of the lease payments).

• Thee statement of activities (income statement) will recognize interest expense on the liability separately from amortization of the ROU asset.

• The statement of cash flows will classify repayments of principal as a financing activity and payments of interest as an operating activity.

For an operating lease: • The statement of financial position (balance sheet) will also have an asset identified as a ROU asset and a lease liability (initially the present value of the lease payments).

• The statement of activities (income statement) does treat the transaction differently. The club will recognize a single lease expense so that the cost of the lease is allocated over the lease term.

• The statement of cash flows will classify all payments as operating activities.

For leases with terms of 12 months or less, you are permitted to adopt an accounting policy electing not to recognize the lease assets and liabilities. Instead, you will recognize lease expense (generally on a straight-line basis) over the life of the lease.

If the initial lease term is 12 months or less but there are renewal options, this alternative may not apply. However, it is important to analyze these changes prior to the implementation date and discussed them with your bankers. 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. He may be reached at (703) 385-8809 or by email at kreilly@pbmares.com.

Helaine Weissman, CPA is an assurance partner in the hospitality niche, and clubs in particular, for more than 10 years. Ms. Weissman also is located in the Fairfax office and may be reached at the above number of hweissman@pbmares.com.

JERRY MCCOY

WINNING STRATEGIES

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 Ticking Clock Syndrome Train the Sense of Urgency

Think about setting the alarm on your clock. It ticks down until the time and then goes off loudly.

This concept of alarms is another way of understanding expectations. They are especially crucial in the service industry. We have to recognize them and manage our clubs to this concept.

We all know people whom we think are impatient, and some of us show our impatience more than others. However, we have to understand that in each of us there are time clocks that we set based on what we believe is a fair amount of time to complete a task.

This is especially important in the club industry, as we have set our clubs up to be special places that provide a higher level of service than retail establishments. At least they are supposed to.

your salad, your entrée, when are your drinks refilled, and when you get your check.

Now understand that these expectations of time are different for everyone depending on if they are dining alone (short clock), with a spouse (don’t know), a girlfriend (longer clocks), your three children (very short clock) or a large group of adults (normally a longer clock). So a server with 20 people in their station has many clocks going on and off. Each is an opportunity to make the customer happy or irritated.

Once a server on a busy night gets all their entrées out of the kitchen, they have a tendency to let their guard down.

They don’t realize that there may be a clock going off somewhere in the minds of the 20 guests in their station. The same thing happens on a slow evening when servers just don’t think they have much to do, so they don’t concentrate as hard.

We’ve all had bad experiences – 45 minutes to get your entrée; the waitress missing for 15 minutes when you wanted another glass of wine, or the 20 minutes to get your check at the end of the night. However, in a club these stories become legion in the men’s grill or the ladies’ bridge club.

So why not try to prevent as many problems as you can?

Recently many of us have gone out to dinner, perhaps to the Outback Steakhouse. A man and his wife open the door and immediately a clock begins to tick in their head. How long will it take to be greeted? Once greeted the hostess tells you that it will be probably 20 minutes until a table is available.

So you have a choice of waiting in the seats in the waiting area or going to the bar. You sit down. About 15 minutes into the wait, you start looking at your watch. The hostess has set the expectation of time for you. If she calls you before 20 minutes you are happy. If she calls you even a couple of minutes after the 20 you are unhappy. In this instance it’s better to tell the customer that it may be 25 – 30 minutes and beat the expectation.

The minute you are seated a new clock starts as to when the waitress will bring the menus and take the drink order. Clocks are going on and off as to when you get

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We’ve all had bad experiences – 45 minutes to get your entrée; the waitress missing for 15 minutes when you wanted another glass of wine, or the 20 minutes to get your check at the end of the night. However, in a club these stories become legion in the men’s grill or the ladies’ bridge club. So why not try to prevent as many problems as you can?

Every wait staff training program should concentrate on teaching the sense of urgency with the example of ticking clocks. Make sure they understand they are being timed somewhere. They need to be observant and stay in sight of their customers as much as possible. This type of training should carry over to all areas of the club where employees come in contact with members.

It’s really simple. Don’t procrastinate. BR

Fred Arbuckle

BOARDROOM MAGAZINE’S DISTINGUISHED CLUB PRESIDENT FOR 2016

By Dave White, editor Private Club Presidents of the Year major supporters Kopplin Kuebler & Wallace | The Association of Private Club Directors As a volunteer, serving as president of a private club is a large enough task. Serving as president of a second private club is an even larger commitment.

Leading a private club through the transition from a developer-owned to a member-owned club is also an enormous task, so you can just image the magnitude of the effort of leading a second club through a similar transition, at the same time.

That’s exactly the case with Fred Arbuckle, president of The Bridges at Rancho Santa Fe, near San Diego, and president of 3 Creek Ranch Golf Club in Jackson Hole, WY. Lenny Fisher is general manager at The Bridges at Rancho Santa Fe with Chad Becker the general manager at 3 Creek Ranch Golf Club .

President Arbuckle featured in this issue is one of BoardRoom magazine’s two Distinguished Private Club Presidents for 2016. The other Distinguished Private Club President is Matt Kellogg, president of the Colorado Golf Club in Parker, Colorado, southwest of Denver.

President Kellogg will be featured in Boardroom’s July/August cover story.

BoardRoom magazine this year is recognizing 22 Private Club Presidents of the Year – 2016, for practicing what they preach – leadership for the betterment of their clubs – board presidents or chairs who serve as the volunteer leaders of their club.

It’s the ninth year the industry’s top private club presidents have been honored by BoardRoom magazine for their outstanding work.

“We accepted nominations and applications from many different clubs for 2016 and are honoring 22 club presidents from Canada and the U.S.,” explained BoardRoom magazine’s publisher and CEO John Fornaro.

“Our selection of the top 22, Fred Arbuckle and Matt Kellogg as our Distinguished Club Presidents, signifies another successful search for leaders who have contributed so much to their private clubs and their member experience.

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“And it’s a rare occasion when a volunteer is selected president of two clubs, let alone the massive tasks President Arbuckle accepted. It’s a marvelous achievement,” Fornaro added.

The impetus for BoardRoom’s top president recognition program comes from its sponsors, the Association of Private Club Directors, the parent organization of Boardroom magazine, and Kopplin Kuebler & Wallace, one of the country’s leading private club industry consultants.

“Fred Arbuckle is the epitome of good governing leadership and collaboration. To lead two clubs through such change takes great leadership, good governance and a wonderful staff to complement his style,” acknowledged Gordon Welch, president of the APCD. “Congratulations on this tremendous achievement. The Association of Private Club Directors (APCD) is thrilled to recognize this achievement and award,” he added.

“Our firm continues to assist BoardRoom magazine in the quest to identify some of the top club presidents,” expressed Dick Kopplin, partner in Kopplin Kuebler & Wallace with Kurt Kuebler and Tom Wallace.

“In my over 40 years of working in the private club business, first as a club general manager and then as a search consultant, I’ve never met an individual who was the president at two different clubs at the same time,” Kopplin added. “Then I met Fred Arbuckle. After spending time with Fred, I can see why both clubs would nominate and elect him to that position.

“He has a genuine curiosity about ‘best practices’ for the governance and management of private clubs. Through his leadership, both The Bridges and 3 Creek Ranch boards of director have experienced presentations on governance and strategic planning.

“Fred has a sincere commitment to providing the best information and data regarding the private club business to his fellow board members so that they can make sound decisions,” Kopplin stressed.

And Arbuckle fellow board members at both clubs acknowledge his outstanding achievements.

“Double congratulations on this honor,” expressed Larry Bloch, The Bridges’ vice president. “The recognition is clearly very well deserved. The transition in club ownership was on all levels a great success and wouldn’t have been possible without his long-term dedication to making it happen. All of us at The Bridges have benefited greatly from Fred’s leadership and commitment to excellence.

3 CREEK RANCH GOLF CLUB

“Fred was a perfect partner in this endeavor,” explained Arnold Silverman, 3 Creek Ranch past president and board member. Arbuckle and his wife Helen have been members at 3 Creek Ranch since April 2007.

“A true professional, Fred never lost sight of the goal and never let his ego get in the way of performing for our members. I have never enjoyed a better partner in a challenging situation. The award is well deserved in spades.”

While similarities surface in the process at both clubs, significant differences also arose. After his election as

president of 3 Creek in 2014, President Arbuckle was instrumental with the board and turnover committee in early transition negotiations with the developer. Arbuckle and the committee worked diligently on goals and strategies and developed sound financial modeling for the next 15 years, while also working with staff on developing successful programs for membership growth.

In 2015, after two years of record membership growth, Arbuckle and club management finalized all turnover-related tasks. In May of 2016, more than 90 percent of voting members approved the turnover.

This also started the selection process for a new slate of board candidates, by-law revisions, membership satisfaction surveys, focus group sessions, board retreats, and the initiation of a strategic planning process.

“After more than 26 years in the private club industry, the dedication, passion, and drive of our volunteer board leaders never ceases to amaze me,” expressed 3 Creek Ranch GM Chad Becker. “President Arbuckle’s leadership, ➤

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ing the club’s management team to run the day to day operations of the club,” Becker expressed.

THE BRIDGES AT RANCHO SANTA FE

A 14-year member at the Bridges, Arbuckle served on the developer’s advisory board of governors, but a year before the turnover, Arbuckle was selected one of three members of the acquisition committee, each with different talents that created a comprehensive unit to lead the club through the complex turnover process. The turnover process was spelled out in the original club documents but it involved significant supplemental negotiations and detailed due diligence aimed at clearly identifying the title, survey, environmental, engineering, operating, governance, tax, financial sustainability and other issues critical to the transaction’s success. In addition, political issues requiring constant attention to address individual and group member concerns arose as one of the most challenging and demanding elements of this process.

Also, critical to the success was the ability of the committee to work effectively together as a team, based on an unwavering mutual respect and trust that evolved very quickly and was sustained throughout the process.

“Fred’s character, integrity, objectivity and competence was demonstrated every day and his commitment to get the job done in the best interest of all members was the motivation for the committee to stay the course and achieve its goal,” expressed Dave Schaffer and Andrew Leitch, the other members of the transition team.

A supermajority of the membership approved The Bridges’ transition, and Arbuckle, elected by his board members, has served as the club’s president for two years, as the knowledge acquired during his tenure on the acquisition committee guides him in his duties.

“His dedication and focus are admirable as he continues to lead a team of talented board members as they refine the club’s sales process, operations and governance,” expressed the club’s general manager Lenny Fisher.

Bottom of pa g e 24

➤

T h e B r id ge s at Ran c h o S an t a Fe an d G M Le nny Fis h er

3 Creek Ranch Golf Club and GM Chad Becker

dedication, commitment, and time spent is a testament to his love of the club, fellow members and staff.

“What I find most incredible is that he had been and was doing the same things at The Bridges as their president as well. A rare breed of member and president indeed!”

Becker exclaimed.

“The turnover negotiations took over three years, and … a road was filled with pot holes, “commented past president Silverman. “At the beginning, while there was good will, there was a misaligned slate of what the developer needed and the members needed. At times, agreements were reached only to fall apart at the approval stage as the various partners of the developer had different views on what would be a ‘reasonable deal.’

“There were several opportunities for the negotiations to evolve into a bitter contest to wills,” Silverman added.

“That the ultimate outcome was a “win, win” for both sides was not because anyone being smarter or more clever. The excellent outcome happened by maintaining a consistent air of cooperation and optimism regardless of what, at the time, may have seemed provocative.

“That the committee kept its cool for over three years and maintained a climate of optimism and trust was because its patience and the ability to smile in the face of adversity,” Silverman commented.

“Fred has the unique ability to bring individuals together to build a cohesive strategy serving the entire membership,” added Don Opatrny, 3 Creek’s treasurer.

“Working with president Arbuckle has been a positive learning experience in effective due diligence, governance best practices, and challenging ourselves to do better each day,” stressed GM Becker. “His main focuses since becoming president, along with the turnover process, has been benchmarking, developing, and communicating good governance practices.

“He has worked with his fellow board members and the club team in developing new committee roles, responsibilities, and charters. He consistently communicates the importance of a board setting policy and direction while allow-

Distinguished President Leads A Distinguished Career Fred Arbuckle, one of BoardRoom’s Distinguished Private Club Presidents for 2016, also can be recognized for his distinguished career, especially in the country’s real estate development industry.

Matt Kellogg, president of the Colorado Golf Club, also selected as a Distinguished Club President of 2016, and will be featured in the July/August issue of BoardRoom.

Arbuckle and his wife, Helen have been members of The Bridges of Rancho Santa Fe, CA since 2002, and members of 3 Creek Ranch Golf Club in Jackson Hole, WY since 2007.

The couple has two sons; Dan and Kyle. Dan graduated from Utah State with a degree in business, and lives in North San Diego County with his wife and daughter. He works in a local manufacturing company. Kyle graduated from the San Francisco Art Institute with a degree in Fine Art. He continues to live in the Bay Area and works in the hospitality industry.

Professionally, Fred Arbuckle, president of Morrow Development since 1993, has spent most of his working career in the real estate development industry.

Morrow Development is the master developer of the award-winning Villages of La Costa in Carlsbad, CA, a property consisting of four villages on 2,300 acres with approximately 3,300 homes and 2,000 acres of preserved natural open space. The firm has also worked with a prifrom Cover Story | 22

Shortly after the turnover, the club faced a huge challenge with the departure of its general manager. President Arbuckle led a task force devoted to finding a new GM with unique skills to fit The Bridges’ culture – and a person who could deal with significant operational issues. The committee selected Fisher as the person best suited to meet the Bridges’ needs.

In the spring of 2016, recognizing the importance for the board to work with a common understanding of club governance, industry trends and the current state of private clubs, Arbuckle initiated a board retreat for board members, as well as nominees in upcoming board elections.

“This ensures that continuing and new board members will have a common understanding for the future,” explained Fisher.

The club, under President Arbuckle and GM Fisher, has had to replace management staff in key positions and this has helped improve the club’s member experience, as well 24

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vate owner on the planning, sales and marketing of 35,000 acres of various properties around Telluride, Colorado.

Previously, Arbuckle served as vice president of The Baldwin Company, managing properties, and the planning of a new town consisting of 27,000 homes, six million square feet of commercial and 345 acres of industrial property on the 23,000 acre Otay Ranch; vice president of Leisure Technology, a public company that became one of the nation’s largest developers of active adult retirement communities; and vice-president of Harty Companies, a firm with real estate developments in Galveston, Austin and Houston, Texas.

President Arbuckle graduated with a Bachelors degree from California State University, Pomona, and a Masters from the University of Michigan.

His previous club affiliations include La Costa Resort, Carlsbad, California, Shadowridge Country Club, Vista, California and Woodlands Country Club, Houston, Texas.

Arbuckle, a prolific volunteer, and in addition to his commitments to his private clubs, has served as past president of La Costa Greens and La Costa Oaks and La Costa Ridge Homeowners Association; past chair of the Carlsbad Chamber of Commerce; past member of the Carlsbad Library Foundation board of Directors, and past executive board member of the Home Builders Council, San Diego.

Arbuckle also received an honorable discharge from the United States Army. BR as grow the club’s membership. A strategic plan also has been initiated, initially through focus groups and a clubwide survey, to establish a baseline understanding of the members’ view of the club.

While this has also assisted the board in creating a vision, mission statement and core values for The Bridges, the board continues to refine these findings to establish the club’s future needs and improvements, both operationally and physically.

“This will establish new governance directives and priorities to be approved by the club’s membership and help ensure fiscal responsibility for the future,” Fished added.

“If you want something done, ask a busy person to do it.

The more things you do, the more you can do,” the famous comedian and actress Lucille Ball once offered.

To be sure that’s true of Fred Arbuckle, president of The Bridges of Rancho Santa Fe and president of 3 Creek Ranch … significant reasons why Fred Arbuckle is one of BoardRoom’s ➤ Distinguished Private Club Presidents for 2016. BR

2016 Top Private Club Presidents of the Year Volunteer private club board presidents play a huge role in the professional operations of their club, working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions.

BoardRoom magazine’s 22 outstanding private club presidents for 2016 exemplify the focus on the leadership responsibilities, the accountability and the management of the board, while providing a healthy respect for the club’s management overview.

They understand the importance of working, effectively and efficiently, with their volunteer boards, of working with but not micromanaging the club’s management, and the dedication that’s required from everyone with whom they work.

They practice what they preach – outstanding leadership to maintain best practices and an extraordinary member experience for their members’ clubs, factors clearly exemplified by the selection of Fred Arbuckle, president of The Bridges of Rancho Santa Fe and 3 Creek Ranch Golf Club,

and Matt Kellogg, president of the Colorado Golf Club as BoardRoom Distinguished Private Club Presidents for 2016.

Systems along do not insure a good board. Key elements include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with management and the membership, fiscal responsibility, development and establishment of the club’s mission, vision and policy direction, especially through establishment of a strategic plan.

Successful board presidents draw upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well, board presidents provide new board members and future presidents with information they need to perform effectively as board members.

Congratulations to BoardRoom’s 22 outstanding private club board presidents for 2016. BR

Linda Adamany. . . . . . . . . . . . . . . . . . . . . . . . . . Kensington Golf & Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Fred Arbuckle*. . . . . . . . . . . . . . . . . . . . . . . . . . . The Bridges at Rancho Santa Fe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Fred Arbuckle*. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Creek Ranch Golf Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Kathleen Boyce. . . . . . . . . . . . . . . . . . . . . . . . . . Wellesley Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Ken Donovan. . . . . . . . . . . . . . . . . . . . . . . . . . . . Fiddler’s Elbow Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA John Fanburg. . . . . . . . . . . . . . . . . . . . . . . . . . . . Mountain Ridge Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Paul Fulmer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Hamilton Club of Lancaster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Janet Ginsburg. . . . . . . . . . . . . . . . . . . . . . . . . . . Alpine Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Steve Hokanson. . . . . . . . . . . . . . . . . . . . . . . . . . Grey Oaks Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Ron Hutchins. . . . . . . . . . . . . . . . . . . . . . . . . . . . Myers Park Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Matt Kellogg. . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado Golf Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Michel La Roche. . . . . . . . . . . . . . . . . . . . . . . . . . Pinegrove Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada Dan McCarthy. . . . . . . . . . . . . . . . . . . . . . . . . . . . Mission Viejo Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Claudia McNulty. . . . . . . . . . . . . . . . . . . . . . . . . Vero Beach Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Randell McShepard. . . . . . . . . . . . . . . . . . . . . . . The Union Club of Cleveland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Greg Meland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interlachen Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Fred Noa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outrigger Canoe Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA King Purnell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cherokee Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Tom Reni. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Reserve Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Dick Schlosberg. . . . . . . . . . . . . . . . . . . . . . . . . . Eldorado Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Thomas Usher. . . . . . . . . . . . . . . . . . . . . . . . . . . Laurel Valley Golf Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Michael Wagen. . . . . . . . . . . . . . . . . . . . . . . . . . Hillsdale Golf & Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Canada R. Paul Wickes. . . . . . . . . . . . . . . . . . . . . . . . . . . The Ford Plantation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA * is president at both clubs TOP PRIVATE CLUB PRESIDENTS MAJOR SPONSOR

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MITCHELL L. STUMP

FINANCE committee

Mitchell L. Stump, CPA was recognized by Golf Inc. as one of the Top 10 most called upon consultants in the Industry. Look for his soon to be released 2nd addition of Club “It’s All About Golf” Book subtitled: “Same Theory, More Questions, More Proof”. He addresses non-member revenue with private club subscribers almost daily. www.clubtax.com

Should Clubs Teach Members The Games They Play?

A CPA’s Perspective

Your first reaction this will probably be: “We do teach our games at the club.”

If you want a golf lesson, call one of our paid PGA professional staff and they will work with you on an hourly fee basis. Want a tennis lesson? The club has tennis professionals available to give lessons for a fee.

Clubs make personal trainers, Pilates instructors and even bridge playing professionals available to train members for an additional fee.

May I suggest that most individuals do not need to be a private club member (and to pay private club dues), to find someone to pay to teach their game of interest?

Quite possibly, a non-member of your club, I can come onto your club property and secure a lesson from your talented teaching professionals just about any time I want. It happens.

PONDER THIS

Ask your teaching professionals what percentage of your members would like to improve their games and then determine what percentage actually pay for the professional for an hour lesson. If the results are anything like golf was in a 2009 survey by National Golf Foundation, then: • 95 percent of core golfers have a strong desire to improve, • 80 percent are willing to work on their game, and • 81 percent believed they were capable of improving.

• However, only 23 percent will have taken a lesson in the past 12 months.

The NGF study offered the following conclusion: “There are plenty of players who want to improve and believe they can do so with the help of a golf professional. Time and money are barriers to golf instruction, no doubt, but they are surmountable barriers for the majority of golfers.

Course operators need to get their pros out on the range engaging customers.” www.golfweek.com/2009/06/08/ngf-creating-bettergolf-consumers/

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Why do you think the private club industry has not done something different as a result of this 2009 study? Albert Einstein defined insanity as, “doing the same thing over and over again and expecting different results.”

WHAT IF

• What if your club gained the reputation of being the club to join if you wanted to improve your selected game?

• What if your club made its primary focus “teaching” members your game?

• What if your teaching professionals “guaranteed” that new member, (that 25 handicapper in golf, the occasional tennis player, the overweight middle aged corporate executive, etc.,) an improvement in their playing competence 30 percent in the first year and an additional 30 percent the following year?

• What if “teaching” was an amenity offered at the club?

• What if “teaching” was part of what club dues pay for?

• What if your marketing director could say: “Join our club and we will improve your game, guaranteed?”

CAN IT HAPPEN?

Sure it can, and it’s actually relatively easy.

1. Treat the teaching professional like any other club employee.

2. Pay your teaching professionals a decent rate of pay for the desired number of hours to be worked, 3. Hold the professional responsible for results, and 4. If they can’t deliver, find a better teacher.

A CPA’S OBSERVATION

Club general managers and boards will spend literally millions of dollars on new and renovated club amenities but cannot seem to spend the few thousands of dollars it would take to teach members to play their games better.

Improve the level of competence of each and every member and see if this amenity will bring in new members.

I believe this may be the salvation at many clubs. BR

20 WE

YEARS IN BUSINESS .

WOULD NOT BE WHERE WE ARE TODAY

WITHOUT THE SUPPORT OF OUR LOYAL CLIENTS AND CLUB INDUSTRY PROFESSIONALS .

WE

LOOK FORWARD TO THE NEXT

20

YEARS

OF WORKING WITH YOU .

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EXECUTIVE CHEF, COMMUNITY ASSOCIATION MANAGER , ASSISTANT GENERAL MANAGER , AND CLUBHOUSE MANAGER SEARCHES , AS WELL AS STRATEGIC PLANNING AND CONSULTING SERVICES FOR PRIVATE , RESORT AND DEVELOPER - OWNED PROPERTIES .

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s C ot t s d a l e EXECUTIVE SEARCH FIRM OF THE YEAR 10TH YEAR IN A ROW

PETER J. NANULA

FINANCE committee

Peter J. nanula is chairman of Concert Golf Partners (www.concertgolfpartners.com), an owner, operator and all-cash buyer of private golf and country clubs. nanula is the former CeO of Arnold Palmer Golf Management.

The Dangerous Illusion of Real Estate Value - Part I Rodney Dangerfield said it best in Caddyshack, way back in 1980: “Golf courses and cemeteries are the biggest wastes of prime real estate.”

We love our golf, but Rodney was right. The value of the 150 acres under a typical country club is usually much higher if the course was plowed under to make way for upscale homes.

Many club boards I meet with are interested in finding a more sustainable capital structure for their clubs – something apart from the traditional recipe of debt, member assessments and ever-increasing dues.

Such debt loads burden clubs with high debt service payments that never seem to go away; assessments can cause some members to quit. Dues rates that get above market levels cause higher attrition and impede membership recruitment.

But when the board considers its alternative capital options, two common challenges emerge.

ment 10 or 15 years in a row.

At the first missed payment, the loan needs to be restructured. Eventually, the bank must consider foreclosure – but no bank actually wants to own a country club, and a local bank does not want to anger its wealthy clientele, at the club, by initiating the foreclosure process.

So, what’s the fallout? There are now more than 1,000 private clubs with these “zombie loans” they never should have taken out. Their local banks were willing to loan the club too much money, and now these loans can never be paid off, especially if the membership happens to be declining. The heavily indebted club has beaten a path toward slow and painful decline.

The second problem occurs when the board considers fresh equity investment into the club to solve its capital issues for good. Members look at that inflated appraisal of the residential land value, from Toll Brothers, and they think to themselves, “Our club is worth $28 million, so why would we let new investors in at $7 million?”

The simple fact is that the last 500 plus private clubs have traded hands at roughly 1.0 times the club’s annual revenues; to be precise, within a tight range of 0.8 to 1.2 times annual revenues. So, a $6 million revenue club is worth roughly $5-7 million – if the club is to be preserved as a private club.

First, local banks are usually happy to rely on the much higher appraised value (as residential land) when making their loan. Their stance: “Sure, we will loan you 65 percent of the price that Toll Brothers would pay for this land to be turned into McMansions.”

Why is this a problem? Sure, it allows the club to get a sizeable loan to finance that new clubhouse addition. But borrowers tend to borrow as much as lenders will give them, which is often too much for the club to realistically support (while simultaneously keeping up with the funding new capital projects at the same time).

Any club that says, “yes” to this loan scenario has a $6 million mortgage with principal and interest payments of $500,000 per year. As we’ve seen since 2008, some combination of recession, weather and local competition will make it hard for that club to meet that debt-service pay32

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The simple fact is that the last 500 plus private clubs have traded hands at roughly 1.0 times the club’s annual revenues; to be precise, within a tight range of 0.8 to 1.2 times annual revenues. So, a $6 million revenue club is worth roughly $5-7 million – if the club is to be preserved as a private club.

The board has to explain this to its membership, which is often confused by the Toll Brothers appraisal. The Society of Golf Appraisers is now making its certified appraisals clearer, by stating whether the indicated value is based on residential development (i.e., the Toll Brothers bulldozer scenario) or a continuing private club scenario.

But the damage is done when the large club mortgage was taken out based on the inflated real estate appraisal.

Members have real trouble thinking clearly about the club’s capital structure in time to save their club. BR

TOM NEILL

HISTORIC committee

Tom neill is president of Private Club Historical. His company creates strategic historical plans, discovers club history, designs historical exhibits, displays, books, and historical videos. He may be reached at (949) 497-6543 or via email: tom@privateclubhistorical.com.

For more information please visit: www.ClubHistorical.com

Wall of Wonder - It’s Time to Start!

Whether your club is 10 years or 125-years-old, having a historical display as a touchpoint for members can have a significant impact…most notably member pride.

Member pride is an intangible asset, which instills a sense of community and belonging among members – all the while creating a legacy at your club. Properly told, your clubs’ history can convey the unique story of your club’s origins, mission, defining events and membership.

Your members will be proud to know they are connected to the building, mission and founders of their club. Clients tell us that this results in continued membership usage, retention and recruitment. Visiting guests and family also appreciate the significance of your club, especially those who may not be familiar with the club.

Furthermore, your Wall of Wonder need not take much space. In fact, there are most likely underused areas in your club right now.

Make sure your Wall of Wonder display area is created with a

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thoughtful, specific approach for your club and members, something that can be accomplished in one impactful custom installation.

How do you start this Wall of Wonder? The most challenging part for most clubs is to come up with a plan on

Diablo Country Club, Diablo, CA

Does your club have a Wall of Wonder? Or, in other terms, is your club’s history displayed in a manner that will create awe, astonishment, fascination, and amazement?

how they will tell their story. You can start with your clubs’ beginnings and significant events along the way, leading to the relevant elements of your club today. Also consider integrating into your story, historical information about your community, their contributions and the relationship with your club over the years.

Finally, consider history as an evolving event. In other words, history starts today! Many clubs like to leave open story spaces to accommodate history in the making. When designing your Wall of Wonder, always consider the possibility of future events and flexibility to repurpose artwork, without using additional areas.

Thinking about and discussing the creation and display of your clubs’ history can, in and of itself, be a great communitybuilding experience among your members.

It may open up new discoveries, and many members will be surprised to learn things not previously known.

Start today and make that space work for you! BR

LYNNE LAFOND DELUCA

CULINARY & CATERING

Lynne LaFond DeLuca is executive director of the ACCP and an industry consultant. In 2014, Lynne was named “One of the Most Influential Women in the Private Club Industry”

by Boardroom magazine and in 2016 she was awarded the Gary Player educator of the year Award from Boardroom magazine. Lynne@TheACCP.com, or visit www.TheACCP.com.

Bring on the Club Event Innovation Every new year brings about new opportunities for greater innovation, fun and inspiration in our clubs. In our catering and events departments, this could not be more true, with our clubs buzzing with incredible energy during the busy holiday season.

Take the challenge to NOT duplicate what you have done in the past. Make some magic happen in a department that can truly bring the “wow” to member and private events that impact both member retention and repeat private event business.

To make it easier, here is a handy little checklist so that you can make sure you are launching into an innovative and even more creative event strategy for 2017.

FOR MEMBER EVENTS

1. Plan your 2017 annual member events calendar. This is a great opportunity NOT to copy and paste all of your member events from 2016 into the 2017 calendar. Yes, you have your “traditions” that the club hosts every year, but ALWAYS breathe some new life into that calendar. Add in some “pop up” events (very trendy right now) and engage your creative partners to help with brainstorming some fresh ideas.

2. Take the time to analyze each and every upcoming member event. Start with making sure you have a profit and loss statement prepared in advance on every event.

Have you created the very best experience possible? And, remember the five elements of any memorable and phenomenal party – a lively guest list (you have that – your members!), great food and cocktails, fabulous music/entertainment, thoughtful details and fun!

FOR PRIVATE EVENTS/CATERING

3. If you have not already done so while creating your 2017 budgets, conduct a good competitive analysis. This is a key component in determining appropriate pricing for 2017 menus and offerings. Once the analysis is complete, remember to write a solid marketing plan for the year of how you will achieve that goal for 2017!

4. The start of the year can be one of the biggest “booking” times of the year. The key now is timely response, so make sure that phones are being answered and emails are returned promptly (same day if possible). It’s never too early to start filling those dates!

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5. Take a look at your private events menu packages and offerings and change (almost) everything! The look, the photos, the menus, the offerings, the upsells, etc. Start fresh and innovate! Don’t settle for anything less than spectacular.

6. Make sure you have a great, fun, trendy and innovative “upsell” strategy in place for the New Year! You can still increase your revenues through strategic upsells! For both member and private events/catering: 7. Work on your social media strategy for 2017. Yes, we can and should engage with our members on social media!

The ACCP and Private Clubs Online have some great strategies for doing this the right way. And, compliments of Shanna Bright from Private Clubs Online, here are some updates on our favorite social channels: • Shoppable photos are coming to Instagram. Start planning ahead for your Pro Shop: http://blog.business.instagram.com/post/152598788716 /shopping-coming-to- instagram • Don’t give up on it yet, but Twitter is having some issues. http://www.marketingdive.com/news/what-twitters-uncertainfuture-means-for-marketers/429505/ • Facebook really likes Snapchat filters. So much so, it added new features to the camera: http://www.socialmediatoday.com/socialnetworks/facebookunveils-new-snapchat-camera-option-within-facebook • When was the last time you paid attention to Pinterest?

You could gain event inspiration for days! https://business.pinterest.com/en/blog/150-million-peoplefinding-ideas-pinterest?

When we say that events can impact member retention, this is what we mean. You impact people in an emotional, moving way, creating memories that last beyond a lifetime, and you have a member for life. Have a great 2017 event year! BR

BILL BOOTHE

JEREMY HOCH

TECHNOLOGY perspectives

Software Replacement Versus Re-engineering Assessment Look Before You Leap

We continue to be amazed at the number of private clubs that dump their older club management software for something new without a thought of how they might retain and improve what they already have.

Helping clubs choose a replacement system has been the mainstay for almost 30 years. And if there’s one thing we’ve learned through more than 350 replacement projects, it’s that replacement is never pretty.

Virtually every club department is affected through data conversion, forms design, features configuration, user training, report generation – with a break-in period of 12 months or so as staff (and members) become comfortable with the new software.

In the past few years, about 50 percent of our replacement projects have switched to re-engineering following an assessment. That’s because no matter what the club tells us they want (usually replacement), we always perform the assessment first to make sure replacement is really needed.

It’s the same analysis we would perform for a replacement project, with a small extra step of verifying the feasibility of satisfying the gap list items with the existing software.

But wait you say! If the club’s users are so dissatisfied with the existing software that they want to replace it, how could that software possibly be improved enough to retain it?

Consider what often leads users to be dissatisfied: lack of training and understanding of how the software actually operates, new features and reports added over the years

Consider what often leads users to be dissatisfied: lack of training and understanding of how the software actually operates, new features... and a belief that “new has to be better.”

Not to mention a significant financial investment to get from system A to system B. In the end, is it really worth the effort, disruption and cost? For many clubs the answer is a definitive “yes.” But for many others, the answer is a murky, “I think so” or “I’m not really sure.” So how do you decide?

The good news is that there is an easy and inexpensive way to determine the merits of replacement versus retention. It’s called a replacement versus re-engineering assessment.

This assessment begins with a thorough analysis of the club’s software requirements, which produces a functionality gap list documenting every shortcoming and wish list items gathered from all club departments and management. The gap list is then reviewed by experts from the legacy software company to learn what can be done to address each item on the list.

If 80 percent or more of the listed items can be successfully addressed by the legacy software, then re-engineering becomes a strong contender versus replacement – especially if the remaining 20 percent or so aren’t mission critical to the club’s operations.

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that are not being used, poor configuration and set-up from years past that continue to haunt current operations, and a belief that “new has to be better.”

But why go through all the hassle and expense of a replacement if re-engineering can address the vast majority of the sore spots? The old saying “look before you leap” certainly applies here. First assess the feasibility of retaining and re-engineering, then decide if you really want to make the leap. BR Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment. Bill can be reached at bboothe@boothegroup.com.

Jeremy Hoch is president and owner of Anchor Consulting Services, an independent consulting and training organization specializing in club management software re-engineering and user training. Jeremy’s expertise is in identifying areas of improvement and executing change, allowing clubs to become more efficient by maximizing their investment in their club management software. Jeremy@anchorcs.com.

STEVEN POE

WINE COMMITTEE

Steven Poe is a master sommelier, beverage director at Big Canyon Country Club in Newport Beach, CA and can be reached at (949) 706-5270 or via email: spoe@bigcanyoncc.org.

Roll Out The Barrel

Barrel Aged Cocktails in Private Clubs Bartenders in restaurants all over the country are using oak barrels to age premixed cocktails. This is a relatively simple process that produces delicious variations of classic libations. While patience is required, the result is well worth the wait.

Private clubs, in particular, are in a unique position to benefit from this latest phenomenon. Finding commonality across different generations is an ongoing challenge in our industry. Yet, a barrel-aged Manhattan, for example, should be well received by both Baby Boomers and Millenials, alike.

The barrel aging process is likely to attract the younger demographic to a cocktail that their parents and grandparents have traditionally enjoyed for years. All will most certainly find the new version to be delicious. Once the aging of the cocktail is complete, the bartender simply pours over a large ice cube, garnishes with a cherry and it’s done. And perhaps best of all, no 20 minute wait for a delicious drink!

A carefully thought out and organized barrel aged cocktail program affords club managers a fantastic opportunity to impress members at the bar, in the dining room, and when hosting special events. For example, members may be given the opportunity to pre-order a full five liter barrel of their favorite cocktail eight to 10 weeks in advance of a wedding reception.

This barrel can be customized with their name, date, and title of the special occasion. The barrel will easily fit behind the bar, providing a fun display for all to see. Afterwards, the barrel will serve as a memorable keepsake for the bride and groom.

Oak barrels are relatively easy to find online. Be sure to follow accompanying sanitizing and other preparatory instructions before adding any ingredients or al-

cohol. Here is a basic Manhattan recipe with approximate aging requirements for a five-liter barrel: The overall cost of this and the barrel, using Templeton Rye, is around $310. This accounts for roughly 168 ounces of product, allowing for 67 pours of 2.5-ounce drinks. At $15 per drink, that’s $1005.00 per barrel with a 31 percent pour cost. Not bad for a highend, groovy country club cocktail.

The true value, however, is in providing your members with something truly special. Recommended garnish for the Manhattan – Luxardo Original Maraschino Cherry.

There are many other cocktails to have fun with including Cadillac Margaritas, Negronis and one of my favorites –Vieux Carré. Cheers and enjoy! BR

MANHATTAN • 3.5 liters Rye Whiskey (e.g. Whistle Pig, Templeton) • 1.5 liters Carpano Antica Sweet Vermouth • 3 oz. Angostura Bitters Pre-mix all ingredients in a large container before pouring slowly and carefully through a funnel into the barrel, mindful that the barrels vary slightly in size. Let set for one week to season the barrel. Afterwards, turn 45 degrees clockwise on its side for one week; then turn 90 degrees counter-clockwise so the barrel rests on the opposite side for an additional week. Return to original position and taste.

Continue to sample small amounts once a week until the desired effect is reached, usually around eight weeks. Bottle your perfectly barrel-aged Manhattan and keep behind the bar – time to start your next batch!

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WALT GRASSL Walt Grassl is a speaker, author, and performer. For more information, please visit www.WaltGrassl.com.

HR COMMITTEE

To Lead Others, You Must Serve Others The Importance of Servant Leadership Paul was 24 years old. He was shy and the youngest member of his workgroup. During lunch with his coworkers, the conversation turned to the recent promotion of his current supervisor, Charles. They speculated about who would replace him.

There was a major concern that a coworker, Terry, was lobbying hard for the position. Terry got along with no one.

He was hoping to get the job, “so people will do what I want them to do.”

While the group was lamenting about that possibility, Paul asked why no one there was vying for the position.

One by one, they all had their reasons why they didn’t want it. Paul shook his head and said, “If you are not part of the solution, you are part of the problem.”

Two weeks later – much to his surprise – Paul was called into Charles’ office and offered the job. He was shocked.

While most of the group was under 30, one member was in his mid-40s. Paul thought, “I can’t tell my dad what to do.”

After sleeping on the offer overnight, Paul accepted, on the condition they train him to be a leader. Charles agreed.

He also read voraciously about leadership – for the rest of his life. Paul learned that the leadership was not about telling people what to do. He learned to be a leader who shares power, puts the needs of others first and helps people develop and perform at the highest level possible.

He later heard these principles described with the term Servant Leadership.

Here are seven things servant leaders do, and why they are important: 1. They sell, they don’t tell. The servant leader persuades others with inspiration, not force. The phrase “Because I’m the boss,” never leaves their lips. A title doesn’t make you a leader. The ability to have an impact, to influence and to inspire does.

2. They value diverse opinions. The servant leader listens to others. They recognize that everyone has something unique to offer. They want to hear different points of view. In meetings, they solicit input from the more re-

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served team members, who are often silenced by the more outgoing team members.

3. They are humble. Servant leaders understand the importance of being humble and grateful. They know that without everyone’s effort, they simply won’t succeed. They make sure they consistently thank their team members, individually and collectively. A servant leader makes a conscious effort to walk around and catch people doing things right.

4. They create a culture of trust. Servant leaders keep their work. They do what they say they will do, and they’re dedicated to doing the right thing. When the team fails, they accept the blame. When the team succeeds, they focus the credit on the team.

5. They see themselves as part of the team. The servant leader knows their team is their most important asset. The team helps them succeed. When the situation dictates, they roll up their sleeves and help get the job done. If some of the team is working on the weekend to save schedule, they show up to support the team.

6. They develop other leaders. The servant leader doesn’t hoard knowledge in fear that they might be replaced.

They know the best way to lead is to create other leaders.

They allow their team members to present to senior leadership, to give them exposure.

7. They think long term. Servant leaders focus on both the immediate task at hand and the important but not urgent activities needed for a healthy organization. They spend a great deal of their time sharing what they learn and helping others through things like career counseling, suggesting contacts, and recommending new ways of doing things.

At the end of the day, we all want to succeed and be recognized. Being a servant leader is a great way to work toward creating a positive and productive workplace. BR

CRAIG J. SMITH Craig J. Smith, ASID is co-founding partner/co-creative director with C2 Limited Design Associates.

He can be contacted via email csmith@c2limited.com or via telephone (203) 259-2555.

CASE STUDY

The Best in Club Design Trends “Shaken not Stirred” Infusing Experiential Design into your clubhouse: Cocktail Lounge 2.0 As a clubhouse designer, I always enjoy sharing our substantive new approaches to clubhouse enhancements that improve the overall member experience, create a new or enhanced revenue opportunity and streamline operational efficiencies.

Over the past couple of years clubs have reached out to us to improve their competitive edge. Not merely related to neighboring club competition but more importantly to the sea of trending restaurants and bars we see popping up all over town. The best way to keep the members coming back to the club on a regular basis is to ensure your offerings are fresh and relevant. By simply rethinking the use and décor of an underperforming or under used space within your clubhouse to create a space that offers up a unique experience that is fresh, fun and with a unique vibe not typically experienced at most private clubs.

As a case study, let’s examine our recent creation at the Country Club of Darien in Darien, CT. We reimagined an underused and presumed dead space into a vibrant space that the members love and is sure to turn a quick ROI. When initially touring the club prior to developing our re-visioning studies for the clubhouse interiors as part of a major clubhouse expansion, we happened upon a small low ceiling space of about 400 square foot between their ballroom and the proposed new member dining venue. As we walked into the room the house committee chair at the time said given the size and low ceiling I guess all we can do is blow it up. I immediately looked to my partner and cocreative director Christina Romann and we knew exactly what to do: turn the low ceilinged 400 sq ft “catch all” space into a sexy cocktail lounge.

I am happy to report that post completion the club’s GM/COO Marc Possidento stated it is a jewel box of a space and has become the most popular cocktail lounge in Darien.

Members love to show the space off to friends and members of several local competitive clubs.

The members make it their first and sometimes their last stop when dining at one of the club’s various dining venues, and on occasions when not dining at the club they will drop by for a drink before or after dinner. So given the distinct break in traditional club design, what makes this décor concept work? Simply put, it is fresh, unique and totally unexpected at a club.

As you begin to contemplate your next club renovation, the single most important takeaway from this article is that no matter what club improvement you may be considering, identify your core identity as a club and how you want to be distinguishable from the competition. Doing so will ensure each and every clubhouse enhancement will keep you ahead of the competition and relevant to needs and expectations of today’s ever-changing membership demographic. BR C2 Limited Design Associates is an award winning interior design and clubhouse styling firm with studios in Historic Fairfield Connecticut and Williamsburg Virginia. In 2016, C2 Limited Design Associates was named BoardRoom Magazine’s Interior Design Firm of the Year for the fourth consecutive year.

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RICK SNELLINGER

CASE STUDY

Rick Snellinger is CEO and President of Chambers, a 360°planning, architecture, and interior design firm specializing in private club planning and design. Headquartered in Baltimore, Chambers also has offices in Dallas, Minneapolis, and Washington D.C. For more information, you can email rsnellinger@chambersusa.com or visit www.chambersusa.com.

Cape Fear Country Club Brings Tradition Into the Modern Age Imagine transforming your state’s most historic club into a cutting edge destination for members across four generations. As tricky as it may seem, Cape Fear Country Club was up to the challenge.

Known as one of the oldest and most distinguished clubs in North Carolina, Cape Fear Country Club engaged Chambers in 2011 to begin the master planning process with ambitious aspirations. The goal? To create a wellrounded club experience that reflected contemporary trends and boasted near-universal appeal, all while honoring the club’s history. Chambers rose to the challenge by creating a two-phase master plan that merged CFCC’s important place in local history with the latest private club trends.

One of the plan’s main initiatives was to rebalance clubhouse dining to respond more appropriately to the club’s various constituencies. During the plan’s first phase, casual dining was reduced to create space for the new adult casual bar/grille venue, which features a horseshoe shaped cross-talk bar, diverse seating types, and improved aesthetics. Upgraded décor in the downsized casual dining attracts more members to the club for casual meals, while the family dining provides a comfortable venue for members with children.

The often-vacant lounge was also converted into a wine room that doubles as a private function space. To further enhance the clubhouse dining experience, a trellis-covered dining terrace was developed, complete with outdoor kitchen/service bar and pristine golf course views, as well as fire pits and portable heaters that extend opportunities for spontaneous socialization into late autumn.

Phase two of the master plan included the design of a brand new 20,000 SF Family Activity Center (FAC), which was positioned between the existing tennis courts and pool to capture the natural synergies between the two amenities. The FAC introduced an expansive fitness/wellness area with group exercise rooms that provides offerings for all ages, ranging from tiny tots classes to physical therapy.

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Youth rooms and a fun ultra-casual dining café create a come-as-you-are atmosphere for families and active members who may want to drop by or dine after a tennis match or swim meet. “Everyone loves that they have a casual area that they can walk into in workout clothes,” says Mary Geiss, CCM, the club’s general manager. “The FAC has helped us create a ‘home-away-from-home’ for our members.”

To preserve CFCC’s storied history and sense of tradition, the FAC’s design incorporated the southern architectural style of the clubhouse, speaking to the club’s location in the coastal plain and tidewater region while creating a contemporary coastal aesthetic.

The plan was approved shortly after its development, kicking off the implementation of both phases. With its rebalanced dining spaces and state-of-the-art FAC, the club was transformed into a living testament to the power of adapting to the lifestyles of modern members – with the usage numbers to match.

“The response from the membership has been overwhelmingly positive,” Geiss continues. Overall, the club has seen a 25-30 percent increase in clubhouse F&B revenues and the renovated bar/grille has quickly become the clubhouse’s hottest space for socialization among adult members.

Geiss adds, “Wine locker rentals alone have produced an additional $9,000 in 2016 earnings. In fact, the new lockers have doubled participation in the club’s wine program.”

The FAC’s Café also boosted sales over 60 percent from when the club was selling exclusively from the pool’s snack bar. With numbers like these, it’s indisputable that the club has experienced an overall increase in member satisfaction.

This ambitious project is a testament to what can happen when applying cutting edge club trends to an illustrious club with long-established traditions. Thanks to the club’s forward-thinking leadership, Cape Fear Country Club has brought its rich history into the modern age with more relaxed facilities that retain the club’s powerful sense of heritage and prestige. BR

RICHARD TIEDEMANN

CASE STUDY

Richard Tiedemann is the director of winery relations at Flora Springs Winery. He is a fifth-generation Napa Valley native whose family has grown grapes since the late 1880s.

In September 2016, he spoke at the Distinguished Ideas Summit at the Union League of Philadelphia. He can be reached at rtiedemann@florasprings.com.

How to Make a Wine Dinner Work for You I’ve worked with dozens of private clubs in my career, and the objective for each event is always the same: provide members with a unique and memorable experience that is only available to them through their membership.

Wine dinners offer a meaningful way to connect with members, especially if a few key rules of thumb are followed.

• Spend time with the winery representative before the dinner. I like to meet with club representatives ahead of time so that I understand the demographic and interests of their members. That way I can tailor my presentation to each group.

• Keep it educational, interactive and fun! Offer attendees information they wouldn’t normally get in a restaurant (or retail) setting. I have a long background in grape growing and winemaking. While I try not to overload people with too much sci-

ence, I find that most people are fascinated by the winegrowing process.

Sometimes I’ll bring jars with soil samples from our vineyards to show how different soils affect the taste of the wine.

• Involve the chef. I met with Executive Chef Thayer Johnson of the Stone Brae Country Club in Hayward, CA and tasted through our wines with him prior to the dinner we’re holding there in January. I know that menu is going to be perfectly matched to our wines!

• Get members involved. Rob Martin, club manager at Wycliffe Country Club in Wellington, FL (where I hosted a dinner in January 2017) went so far as to send two of his members, Vince and Halina Bond, to visit me at the Flora Springs Estate. Rob mentioned that it was Halina’s 70th birthday so I brought sparkling wine and balloons to the tasting!

• Keep it personal. Talking about barrel fermentation and lees stirring

FLORA SPRINGS' GENERAL MANAGER NAT KOMES WITH GUESTS AT THE NAPA VALLEY ESTATE 50

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only goes so far. What people really want to hear are the stories behind the wines. What’s the winery’s history? Who are the owners and how did they get into wine? Today, wine is a lifestyle as much as a beverage, and people want to know what’s behind the glass they’re enjoying.

• Pour a mix of available and exclusive wines. I find that people enjoy tasting wines they can purchase at retail, but they also love trying more exclusive wines available only through the winery. When I host a dinner I often bring a couple of our single vineyard Cabernet Sauvignons. These are small production wines that are only sold at our tasting rooms and through our wine clubs, and they’re a great demonstration of what Napa Valley has to offer. BR As Flora Springs Winery’s director of winery relations, Richard Tiedemann knows how to make a wine dinner special. He ought to. In 2016 he hosted over thirty wine dinners for Flora Springs, and in 2017 he has forty more on the calendar, including twenty with Distinguished Clubs.

CASE STUDY | GRIGG BROS.

Elicitors and Their Vital Role in Plant Health To elicit (v) – draw out or evoke what is latent (already existing).

Compounds and/or ions that activate plant defense responses, when applied as a topical spray, are called elicitors. Product formulations that can improve turfgrass vigor and performance under environmental stress remain very promising technology. Plants treated with elicitors generally exhibit better quality and performance under stress, infection, or both.

Broadly, elicitors generate biochemical-signaling molecules, including jasmonic and/or salicylic acid, which have downstream effects such as antioxidant and phytoalexin synthesis. In addition, these and other biochemical signals initiate plant defense responses such as systemic acquired resistance (SAR) and the hypersensitivity response (HR).

Phytoalexins represent a chemical barrier to stress, particularly infection, due to its antimicrobial properties. Antioxidants reduce oxidative stress caused by free oxygen radicals – the product of low mowing heights, traffic, shade, drought, and temperature stress.

Elicitors include substances of pathogen origin or those such as heavy metal salts, antibiotics and detergents. The former are active at low doses and include proteins, peptides, lipids, or polysaccharides derived from pathogenic compounds, for example glucan, chitin, and chitosan.

The latter include metal salts and other ionic elicitors such as silicon (Si), cobalt (Co), and molybdenum (Mo), which induce plant defense responses at relatively high

doses. Other chemical elicitors include saponin, phosphorus acid (phosphite), and cytokinin.

Many of these compounds have been shown to stimulate plant defense responses when applied as a topical spray or root amendment – a phenomenon known as induced resistance. Growth stage has an important role in efficacy.

Most data suggest that elicitors are most effective when applied to rapidly growing, metabolically active tissues. Induced resistance represents a preventative method of stress alleviation or disease management.

Elicitors rarely have direct activity against pathogens.

Importantly, an induced resistance response will not be fully established until at least three to four days following application, therefore a repeat and sequential application schedule is required prior to the onset of stress or infection. The duration of protection is variable depending on the elicitor, crop, environmental conditions, pathogen, type of stress, etc. Induced resistance may persist from a few days to several weeks.

Elicitors of natural biological origin may be involved in the interaction of plants and potential pathogens, whereas elemental and other ionic elicitors are generally involved in resistance to environmental stress.

Modern approaches to maintaining adequate turfgrass growth and vigor during environmental stress include utilizing all options. The application of elicitors represents a reliable turfgrass management strategy to reduce plant stress and increase vigor. BR

Grigg Brothers introduces Elicitor®, a foliar product designed to improve turfgrass response to stress. Elicitor® includes bioactive compounds that may induce plant defense responses. These chemical activators, or ‘elicitors’, are derived from biological compounds and inorganic ions. Research has shown elicitors can help maintain plant vigor during temperature, shade and/or salinity stress.

Grigg Brothers believes that effective turfgrass management is all about taking the right steps to promote plant health and longevity, and to effectively manage pests. Elicitor® is an excellent addition to Grigg Brothers® Nutritional IPM™ strategies with years of research and proven results.

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KELLEY HARRIS

CASE STUDY

Kelley Harris is principal interior designer at Harris Interiors, a full-service clubhouse interior design firm based in Atlanta, Georgia. Please visit their website for additional information www.hintatlanta.com, or call (404) 492-5997 or email kelley@hintatlanta.com.

Does Your Design Team Listen to You?

A Refreshing Approach to Renovating Your Clubhouse for Your Members The thought that a clubhouse should have a certain look is no longer acceptable.

Some designers can have unbearable egos and attitudes, but when it’s time for a renovation, members know what they are missing and exactly what they want.

Designers must listen to the members.

The design team at Harris Interiors takes a unique approach; we listen. It’s your members’ club, not ours. It’s our challenge to deliver a customized design that solves operational issues first, complete with a timeless, but current aesthetic.

In December of 2015, North Shore Country Club, in Glenview, IL hired Harris Interiors after ending an unsuccessful partnership with another interior design firm. After meeting with the design committee, it was clear that they knew what they wanted, but they had no idea how to get it. Of course casual, family dining was most important, along with gathering spaces, an area for teens, a separate area for adults, and upgraded private dining. Most of all, North Shore Country Club needed its own identity.

Construction began in January 2016. The first phase was a renovation of the club’s entry, prefunction, ballroom and three private dining rooms. These spaces were significantly upgraded with custom millwork, new finishes, furnishings, deco-

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rative lighting and acoustic treatments. An existing under utilized outdoor terrace overlooking the golf course was upgraded with new dining and lounge furnishings.

The second and final phase was completed in September. This phase included a renovated family grille, complete with its own bar, televisions, and teen area with a pool table. On the renovated upper level, adult dining received an overhaul, including a special Chef’s Table private dining room (pictured right). An adjacent adult bar and lounge is brand new space with soft contemporary design.

“To date we have seen an uptick in F&B revenues to the tune of 35-40 percent,” explained Tim Ward, CCM, the club’s general manager. “The members are stopping in before going to the movies, plays or sporting events. This is a complete 180 from the past. They now see the club as a viable nightspot to stop for a quick drink or hang out. This is huge for us and bodes well moving forward. The acceptance of the new clubhouse areas is unanimous and the energy and morale of the membership are remarkably improved. Now we’re set to build upon this momentum and secure the club as their third choice after home and job!”

Harris Interiors took on the challenge to deliver what the members wanted. The proof is in the numbers, but also in how the members feel about their club. BR

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RICK LADENDORF

WELLNESS COMMITTEE

Rick Ladendorf is the president of Prevo Health Solutions, a wellness solutions provider, executive producer of the AMERICA’S HEALTHIEST CLUB© wellness rating program and founder of the Wellness Project. Contact Rick Ladendorf at (949) 933-5470 or rladendorf@prevohealth.com

Purpose Driven Wellness Programs Drive Usage, Retention and Recruitment FOUR SOUTH FLORIDA CLUBS ARE TAPPING IN TO MEMBERS’ LIFESTYLES AND INTERESTS

A 2016 study conducted by Club Member Index, LLC of 40 private clubs nationwide revealed that exceptional members represented 26 percent of membership. They spent $472 on meals, played nine rounds of golf, spent a total of $860 and touched the brand 40 times per month.

Conversely, lapsing and at-risk members representing 23 percent of membership on average, spent less than $65 on meals, played one round of golf, spent a total of $77 and touched the brand less than four times per month.

The data clearly shows that exceptional, high-use and core members are critical to the sustainability of the club’s top and bottom line revenues. Whereas many of the lapsing and at-risk members are more likely to resign because they are not getting value from the club.

Classifying your members as exceptional, core or at-risk requires effort, but it provides club leadership with the insights to improve usage, which in turn improves retention and recruitment efforts.

It’s a classic chicken and egg dilemma for the private club…which comes first, recruitment, retention or usage?

Well, it depends on how well you truly know your members – all members!

SEEK FIRST TO UNDERSTAND THEN TO BE UNDERSTOOD (STEVEN COVEY)

Most clubs rely on member satisfaction surveys and point-of sale data to evaluate membership usage and opinion. Unfortunately, neither of these address the one thing that matters most - member interests. Do you know which of your members have a pet, enjoy tap-dancing, play musical instruments, belong to an outside gym or studio, have kids/grandkids that play soccer? Do you know your members’ lifestyles, life stages or psychographics? Do you have the systems in place to collect, organize and evaluate member usage and spend?

• Imagine having dozens of active clubs-within-the-club, a robust lecture series and club sponsored activities and events that cater to small groups of like-minded members.

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• Imagine seeing a reduction in attrition because your offerings become more relevant to more members.

• Imagine having a sustainable increase in revenues and a full membership!

• Imagine knowing your members so well that your department heads can proactively provide the programming, activities and amenities that engage your entire membership, month-to-month, season-to-season and year-to-year.

MEMBER USAGE AND ENGAGING IN MICRO-MOMENTS

Member usage and member spend, i.e. engagement, are great indicators of a member’s satisfaction and we all know satisfied members are more likely to refer members; participate in club sponsored events, spend more, volunteer for committees and board positions and be the best advocates and influencers. Wellness related programming and amenities are driving member usage like never before and many clubs are starting to see a sustainable increase in member usage, which in turn is reducing attrition and improving member recruitment efforts.

Our data suggests member usage improves dramatically when internal communications are targeted and personalized, but equally important is the timing of the communications. Reason being, today’s consumers make decisions in the moment. ThinkwithGoogle, a new service from Google, uncovers the latest marketing research and digital trends with data reports and articles, which they refer to as “Micro-Moments.”

Micro-moments can happen anytime and anywhere. And it’s in those moments that consumers (members) expect brands (the club) to address their needs with real-time relevance. Micro-moments are critical touch points within today’s consumer (members) journey, and when added together, they ultimately determine how that journey ends.

There is a lot to learn from ThinkwithGoogle as we can get a large-scale look at people’s interests and intentions.

“To eat healthy, you have to pay a lot of attention,” says Dr. Frank Lipman, the founder of Eleven Eleven Wellness Center in Manhattan. And people are – especially millennials – he contends. “They are 10 times more aware than my gen-

eration,” says Lipman, and are “much more interested in staying healthy and eating healthy.”

Perhaps this growing “obsession with health,” as food and restaurant consultant Michael Whiteman puts it, is in part because people are living longer and want their extra years to be healthy ones. As the saying goes If I knew I was going to live this long, I’d have taken better care of myself.

Compared to other industries, the private club industry is not as sophisticated when it comes to using technology to collect, organize and manage consumer (member) interests and personal data, which makes it difficult for many clubs to target and personalize internal communications.

nities nationwide that make healthy choices easier through permanent changes to environment, policy and social networks.

There are currently seven designated Blue Zones™ in the United States and Wyndemere was the first private club to take the time to get involved in the community-wide initiative and get certified.

“When I introduced the Blue Zones Project™ to my team members, they were immediately very supportive and we jumped in to action. I volunteered on the steering committee and it’s been awesome to have a front row seat to be a part of such an amazing county wide project,” explained Lynn.

“The process took nearly six months, but the effort has paid off in so many ways. There’s been extensive media coverage that helped sell homes and memberships, extensive member appreciation and most importantly an increase in member usage and satisfaction. It has truly become a new culture for many of the club’s members and most certainly the staff. It’s all about offering healthy choices and programs.” ➤ P I C T U R E D TO P TO BOT TO M : J i m my Ly n n , Wy n d e m e re Co u n t r y Cu b G M /CO O ; Wy n d e m e re b o cce co u r t s ; Wy n d e m e re c l u b h o u se

FOUR SOUTH FLORIDA CLUBS WITH HIGH LEVELS OF WELLNESS RELATED MEMBER ENGAGEMENT

These clubs are certified as America’s Healthiest Clubs and recognized by the BoardRoom magazine as Distinguished Clubs. They have created a culture of wellness that engages members in relevant programming and continue to invest in amenities that appeal to all ages.

Wyndemere Country Club, Naples Florida Wyndemere, one of 90 private clubs in Collier County (Naples) Florida, is a Distinguished Club, one of America’s Healthiest Clubs, the first certified Blue Zone™ workplace private club and most recently a founding member of the Wellness Project, a club industry initiative spearheaded by America’s Healthiest Clubs.

When asked why he and the club continue to invest in wellness, Wyndemere’s GM/COO Jimmy Lynn said, “It’s simple, it’s the right thing to do for the members and staff.”

Blue Zones Project™ is a concept used to identify a demographic and/or geographic area of the world where people live measurably longer lives.

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from Wellness Committee | 59

The Wyndemere team participates in Blue Zones Project™ sponsored community events, adapted menus to include references to Blue Zones and an expanded wellness lecture series. Through this, the club has seen an increase in members actively engaged in fitness and recreation.

“We’ve created walking clubs, biking clubs, bird watching clubs, wine at 5:00 clubs, bocce clubs, pickleball clubs, encourage walking the golf course, and many more to keep the calendar full of connection points and avenues to socialize and stay active with other members,” Lynn added.

There is a movement taking place and the private club industry is at the epicenter of the evolution, led by passionate leaders like Jimmy Lynn, one of the founding members of the Wellness Project.

Bonita Bay Club, Bonita Springs, Florida Bonita Bay Club, located in Southwest Florida, developed its own wellness brand and programming called WAVE (Wellness and Vitality Enrichment). One of the neighborhoods within the Bonita Bay community is Blue Zones recognized and the community, comprised of 55 neighborhoods, may seek to become Blue Zones recognized because of this grass roots effort.

“The most valuable suggestion we received from our America’s Healthiest Clubs evaluation was to brand our wellness program, so we did just that,” explained Fred Fung, the club’s assistant general manager.

P I C T U R E D L E F T TO R I G H T: Da n M i l e s, B o n i t a B ay C l u b G M ; Fro n t d e s k of t h e f i t n e ss ce n te r ; WAV E We l l n e ss A n d V i t a l i t y En r i c h m e n t l o g o

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“We introduced the WAVE brand initially with the WAVE Café, a healthy café located in the Bonita Bay Club lifestyle center. Most recently, our WAVE program has been expanded throughout the club and all operating departments, increasing awareness, engagement and participation in a wide variety of programming. Our club logo is a sun and wave so this integrated well within our overall club branding identity and we created a corresponding logo allowing members to associate the word with health,” Fung added.

“Tammy Mugavero, our passionate wellness manager created the wellness triangle that embraces a concept that to be well, balance must be achieved between movement, nutrition, and mental/emotional health,” emphasized the club’s general manager Dan Miles.

“Color coding each side of the triangle allows members to visually identify areas of focus for programs offered in each department. A band with corresponding color is striped across the bottom of each promotion. Participation in wellness oriented programs, fitness usage, personal training, and overall awareness in our WAVE brand

have all increased substantially.”

The most exciting news is Bonita Bay Club has a wait list, and Bonita Bay Club incoming members cite the lifestyle center and wellness related offerings as a significant factor during their decision-making process.

Bonita Bay Club has been recognized as a BoardRoom Distinguished Club, a Platinum Club of America, one of America’s Healthiest Clubs, and a founding member of the Wellness Project. The management is also committed to workplace wellness and offers a dedicated employee fitness center that includes fitness classes and personal training to help with recruiting efforts, engage the staff in prevention and to help lower health care costs.

The Club at Mediterra, Naples Florida Carmen Mauceri, the club’s GM/COO, considers the members’ health and wellness a priority and has been evaluating the Blue Zones Project™ to see if it would benefit Mediterra’s active membership.

In the meantime, Mauceri and his team have embraced health and wellness across every department and amenity. Most notably, Mediterra has launched its Doctors’ Orders, a branded nutritional wellness program that includes: super foods, healthy menu options, Words from the Chef (published in the monthly Culinary Newsletter), and smoothies and recovery shakes, available to the members in the fitness center, tennis center, poolside, and at the Bocce Garden.

According to Executive Chef Tyler Field, the fresh seasonal salad, served with the smoothie of the day and the antioxidant salad (baby spinach, quinoa and avocado, fresh berries, mandarin oranges, toasted walnuts and pomegranate vinaigrette) have been extremely well received and have become top sellers.

“Like other private clubs in Naples, our members expect an exceptional culinary experience and we elected to go above and beyond with education that speaks to the health benefits of the seasonal ingredients used in the menu items,” Chef Tyler explained.

A recent article written by Chef Tyler explained the health benefits of squash that includes promoting cardiovascular health, improving lung health, protecting against birth defects and help fighting disease. “The monthly newsletter is just one way for us to communicate the message and our members have voted with repeat requests,” he added.

Also hugely popular with the health benefits of socialization and exercise is the club’s bocce program.

“We have over 600 members that participate in bocce ball on campus and teams that proudly represent Mediterra across three divisions that compete against other Naples clubs. We recently added a third bocce court to keep up with the demand,” offered GM Mauceri. “For many, late afternoon bocce is their second or third activity of the day and many members request a smoothie before they begin.”

Mediterra continues to expand its wellness offerings to satisfy the members’ interests. They have four certified executive chefs, all of whom base their menu development on nutrient retention, who assist in personalized and targeted messages that communicate why eating cleaner is good for your health.

Mediterra, is one of 20 leading clubs that have joined the America’s Healthiest Club Wellness Project as a founding member.

The Club at Mediterra has been recognized as a BoardRoom Distinguished Club, one of America’s Healthiest Clubs, a two-star Green Certified Restaurant, Community of the Year 10 times in 14 years, a Top 50 Platinum Club, the number one place to retire in Florida and a Top 50 Place to Work in South Florida. ➤ P I C T U R E D TO P TO BOT TO M : Ca r m e n M a u ce r i , T h e Club at M e d i te r ra’s G M /CO O ; F i t n e ss Fa c i l i t i e s

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the ultimate in service and amenities that I have never seen duplicated… it is Frenchman’s Creek Beach and Country Club, Palm Beach Gardens Florida an experience of a lifetime,’” Goswami Achal Goswami, GM/COO has been pampering his members for years with its enthused. concierge lifestyle. His philosophy of offering the members services they can’t Frenchman’s Creek is a healthy living get at home is a message that resonates. community where healthcare profes“Every club offers great service, but we focus on the intangibles (image, vol- sionals from Jupiter Medical Center ume and value for the dollar),” Goswami expressed. provide physical, occupational and “Pampering the member is engrained in every department and it starts with speech therapy on-site for those who an all-inclusive strategy where most of the fitness and wellness programs are require such services. Additionally, the included in the dues and includes free daily breakfast.”

Frenchman’s Creek Charity Foundation During a recent on-site evaluation to become one of America’s Healthiest is dedicated to rendering financial and Clubs, it was explained that all employees have limited access to the fitness and in-kind support to civic and not-forwellness facility during off-peak hours. This is a breakthrough in the private profit organizations whose purposes club industry, and the members encourage the staff to stay healthy by using the are to provide civic and cultural proamenities early in the morning and late in the day. grams, community and social services, While this may not work for all clubs, it is encouraging to see a club that and educational programs designed to leverages its two biggest assets – the staff and the facilities. assist, encourage, and promote the “Our members say it best, ‘You can buy a home anywhere, but at Frenchman’s well-being of the residents and their Creek it’s the intangibles of the friendly casual family atmosphere, along with communities.

Frenchman’s Creek, a BoardRoom PICTURED TOP TO BOTTO M : Ac h a l G oswa m i , G M /CO O a t Fre n c h m a n’s Distinguished Club, recently become Creek Beach and Coun t r y C l u b; B e a c h l i fe st y l e ; M e m b e r h e a l t h fa i r another one of the 20 founders of the Wellness Project. While most clubs will never have the budget or amenities of Frenchman’s Creek, all clubs can implement a level of service similar to Frenchman’s Creek that focuses on the intangibles.

It’s the little things that members appreciate and the more we can do as an industry to provide a member experience that keeps them happy, healthy, active and paying dues, the healthier the industry will be for years to come.

Collectively, we need to find ways that address the ‘micro-moments’ where members want immediate satisfaction to the I-want-to-do, I -want-toknow questions and provide the programming to meet their needs, which is precisely the reason we are spearheading the Wellness Project.

Veruca Salt from Willie Wonka and the Chocolate Factory said it best, “Daddy, I want it and I want it now!

How many Verucas does your club have? What’s your purpose? What is your Why? And finally, how can you include some of the principles and philosophies from your peers at your club to increase member usage? BR from Wellness Committee | 61

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LISA CARROLL

HOUSE COMMITTEE

Lisa Carroll is a search executive and consultant with Kopplin Kuebler & Wallace, LLC, a consulting firm providing executive search, strategic planning and data analysis services to the private club industry. She specializes in executive chef searches.

Lisa can be contacted at (561) 596-1123 and at lisa@kkandw.com.

F&B Is an Amenity, Not a Profit Center “What are your financial expectations for the F&B department? Is it to make a profit, break-even or operate at a loss?”

That’s one of the first questions we ask board members and search committees when conducting an executive chef search. It helps us determine the mindset of the club and the level of education the members have about the private club business model. I am amazed at how often search committees expect the F&B department to make a profit like a restaurant.

Professional club managers say it all the time: “We are in the dues business; every department is an amenity subsidized by dues.” Since the “business” of private clubs is very different from traditional restaurant business models, we need to educate incoming board and committee members accordingly.

30-60 minutes or more for a table. If you have an hour wait to be seated at a club you will have a member riot on your hands!

Members like to be seated between 7– 7:30 p.m. – the busiest time at a club, and they like to linger with their fellow members. This behavior allows for just 1- to 1.5 seatings during a given dinner service. Restaurants on the other hand turn their tables multiple times per night generating more revenue with the same labor cost.

Perhaps the biggest reason that food costs are higher in a private club is that members expect a greater value proposition when dining at the club. They pay their monthly dues and, for that, expect that the cost of filet mignon is going to be less at the club than it is at the local chophouse.

Data research of clubs surveyed by Club Benchmarking, a national organization that specializes in gathering and

Statistical research produced by Club Benchmarking and the University of New Hampshire proved F&B results reflect the financial health of a club – they don’t cause it. The healthier a club is financially, the greater the subsidy in F&B. “You wouldn’t want to belong to a club that has a 40 percent food cost or less because it means one of three things: your members are over charged; your members are underserved, or you have quality issues,” says Tony D’Errico, COO of Quail West Golf & Country Club and past president of CMAA. It is all about meeting and exceeding member expectations which is the focus of most clubs.

Often clubs use the highest quality ingredients to help ensure that the level of quality of their F&B program matches the level of quality of their other amenities such as golf, tennis, etc. High quality ingredients also tend to have a shorter shelf life, which may add to higher levels of waste.

Menu items tend to be prepared fresh daily, which involves higher labor costs.

Inventory needs to be higher at a private club. Members expect clubs to accommodate their special requests as well as prepare “traditional club favorites” that may no longer be on the menu. For these reasons inventory must include many items not on the menu to accommodate potential requests.

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analyzing club operations data, reports that the median F&B revenue in 2015 was $2 million. The median income/loss from F&B operations was a $123,596 loss with a median food cost percentage of 42.6 percent.

Interestingly, per Club Benchmarking, the clubs subsidizing the greatest loss in F&B have an average initiation fee of $52,500 while the clubs generating a profit in F&B have an average initiation fee of $14,000. Statistical research produced by Club Benchmarking and the University of New Hampshire proved F&B results reflect the financial health of a club – they don’t cause it. The healthier a club is financially, the greater the subsidy in F&B. If you want your club to offer a value proposition to its members while also delivering the highest quality in food and service, you cannot expect the club’s F&B program to operate at a profit like a restaurant.

Every club should have a written statement on F&B operations that is communicated continually to the board, committees and members. It should also be part of new board and committee member orientations. If this is done, there are no surprises, expectations are set, and goals can be reached. BR

TODD DUFEK Todd Dufek is the locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona and is president and founder of the Locker Room Managers Association with a web site at www.yourlrma.com.

HOUSE COMMITTEE

What Does Your Locker Room Manager Actually Do? Locker room managers are responsible for a variety of tasks at their facilities, some of which will raise an eyebrow, a couple that will surprise and one that may shock you.

The reason? There is often a misconception on the part of club management about exactly what your locker room manager does (September/October 2016 BoardRoom “How Much Do You Appreciate Your Locker Room Manager?”). I also noted that most our time is spent interacting with members, caring for street and golf shoes, as well as maintaining amenity levels. However, that’s far from all we do.

So I asked locker room managers across the country this question: “Besides your typical duties, what other roles and responsibilities do you have at your club?” Here are some of the responses.

“I think we’re the cheerleaders for every other department in our clubs, but we’re also the complaint department,” said Tom Behrendt, locker room manager at Arrowhead Country Club in Glendale, Arizona. “By sup-

porting the programs that my club has invested in, a majority of the members at my facility know these programs are worthwhile. And, they also know that I’m here to listen if they are dissatisfied with something.

“That’s because I’ll go to the right people and get things done. Bottom line, we are the forgotten cogs in the wheel that make clubs function well. ” Many locker room managers often split their time between managing the locker rooms with operating the men’s grill. “At my club, the shoe room is just behind the bar in the men’s grill,” said Ron Bullard, Jr., locker room and men’s grille manager at Desert Highlands Golf Club in Scottsdale, Arizona.

“During the busy season, I bounce back and forth like a ping pong ball in a furious game of table tennis. While I feel that management at clubs nationwide knows about the SEE HOUSE COMMITTEE | 107

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THOMAS B. WALLACE

BOARDROOM BASICS AND BEYOND

Thomas B. Wallace III, CCM is a partner with Kopplin Kuebler & Wallace. He can be reached at: Tom@kkandw.com

Leverage your Team Think and Build Trust Leadership doesn’t come with warning labels. So leaders have to be risk takers and they have to believe in their vision. Many organizations, especially clubs, are risk adverse, but taking chances on creative programing, processes, amenities and offerings, can propel you to new heights.

Anybody remember New Coke? Bad idea? Maybe. But did it ultimately hurt or help the Coke franchise? It is often used as a cautionary tale about tampering with the products and traditions of your organization, but Coca-Cola’s Marketing Vice-President, Sergio Zyman, said this “Yes, it infuriated the public, cost us a ton of money and lasted for only 77 days before we reintroduced Coca-Cola Classic.

Still, New Coke was a success because it revitalized the brand and reattached the public to Classic Coke.”

Taking calculated risks can pay off regardless of the outcome, so it is key that change remain a constant to maintain your leadership role. You have to always generate new paradigms and flex your branding muscle to stay relevant.

So ask yourself...are you hiding behind the word “tradition” when really it’s recycled sameness? A tradition is a historical practice that reflects your organizations’ brand and identity. I doubt the annual October Casino night is a tradition. Is it time to take a step back and ex-

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amine opportunities for heightened experiences for your members?

Leverage your team think/build trust: The first thing you need to do is identify the greatest resource you have for brainstorming new and creative ideas: Your staff, especially your newer managers. We need team buy-in; we need an environment where team members feel encouraged to share their ideas without fear of judgement.

A hallmark of effective leadership and staff engagement is trust. The leader of a club wants to build trust, but the most successful leaders understand you must lavish your team with trust to foster a trusting and creative environment. The best general managers/COOs recognize that great ideas are frequently generated at the front lines.

Ideas and feedback drive successful organizations forward, and so you must embrace a culture where questioning things is not only accepted but encouraged. Build a culture of trust, sharing and creativity and eventually rampant success isn’t far behind.

There’s another benefit to seeking out the team for their thoughts and perspectives: employee engagement.

Employee engagement is critically important. A recent study said engaged employees are 480 percent more creative and willing to offer suggested improvements to their bosses. And an employee working for a company that fosters creativity is 370 percent more likely to recommend their company as an employer.

These numbers are staggering! Employee engagement is the most important part of a company’s success, but I also believe a pillar of engagement is an environment of creativity.

Creativity studies show that two percent of 44 year-olds are creative but 98 percent of five-year-olds are creative.

What can we learn from that? It tells us that as children we are encouraged and put in environments that foster creativity and the older you get the less you’re in those environments.

Adults spend most of their time in environments of responsibility, systems and structure. Now, anyone that knows me knows I love a place for everything and everything in its place…I adore policies and procedures, but killing creativity is like throwing success and money down the commode.

Creativity drives the culture and mindset of an organization – an organization that values fresh thinking, gives staff the time to be creative and strives to push the boundaries of the club industry.

When at The Club at Mediterra, my team and I wanted to make sure all levels had a vehicle for their ideas to be shared…safe, fun, timely and interactive.

If the idea “sinks,” it is dismissed, but the teammate who submitted it is thanked, and it’s kept on file for possible future review. An idea deemed good enough to “swim,” is assigned to a staff member so it can be brought to life.

It’s then listed on the Think Tank board as “on the hook,” and a date for completion is set. The special category, “trophy fish,” allowed for really great ideas and the best idea

And an employee working for a company that fosters creativity is 370 percent more likely to recommend their company as an employer. These numbers are staggering!

Employee engagement is the most important part of a company’s success, but I also believe a pillar of engagement is an environment of creativity.

We began with the Think Tank … an oversized, aquariumthemed (fish tank) whiteboard posted in an accessible but protected environment. We placed our “tank” at the front of the club’s administrative offices, where all teammates have access and pass by as part of their typical day.

The idea was to jot down ideas in the Think Tank and about 10 new ideas generally were written on the board weekly. As soon as possible after they were posted, they were discussed placed in the categories of “sink,” “swim,” “on the hook” or “trophy fish” and “catch of the day, by management.

the club received over a given period of time would earn the status of the “catch of the day.”

Ideas floated through the “Think Tank” came to benefit both members and staff alike. We learned early on that an open forum and exchange of free-flowing ideas can lead to positive synergy and solution-driven thinking.

Build your own Think Tank and harness the creativity in your organization. Challenge yourself and the other leaders in your team to take risks and be willing to adjust their paradigms so that stagnancy and recycled sameness stops, or never happens, at your club. BR

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FRANK VAIN Frank Vain is president of McMahon Group, a consulting and planning firm service to private clubs. He can be reached at fvain@mcmahongroup.com

EXECUTIVE COMMITTEE

Lessons in Leadership Success Is Not Accidental

There are all sorts of take-aways from the 2016 presidential election, but I’ll leave it to the political pundits to expound on what it means for the country. Time will tell, of course.

Whatever your political persuasion, the outcome is instructive for club leaders at a time when they need to be a catalyst for change. While clearly off the bottom, the club industry remains under pressure.

Demographics, changing values and lifestyles, the regulatory environment and other issues suggest this won’t change for the better anytime soon. It is more important than ever for club leaders to develop a strategy for the future of their organization and motivate the membership to embrace it.

The winners in the shrinking club industry are the innovators and adaptors, while the marketplace is punishing the clubs that lack compelling reasons to join. Success is not accidental.

An achievable vision is grounded in legitimate reasons for why your club exists, an accurate assessment of your marketplace and an understanding of your membership, all in sync with your core values.

Once the board has completed the research and strategy work to outline a direction, it is important to bring the members together so they understand it. A starting point is the club’s committee system. The energy of these volunteers should be marshaled in a unified direction and leveraged for their ability to pass it onto others.

They are the most loyal of members and they’ve volunteered their time to help the club improve and prosper.

They want to see it be successful. Unfortunately, they often operate in silos, with limited understanding of how their efforts fit in with the club’s overall strategy and success.

One step to better committee performance includes establishing goals that are aligned with the board’s efforts.

Once your board has set the agenda for the year, share it with your committees in an all-committee Meeting. The committee chairs can then use this as a basis to plan their year, scripting meetings to focus on specific issues that tie to the club’s strategic plan.

Once this core group has been brought into the fold, spread your message to the entire membership. This can be accomplished through an initial publication of your

Communications is a critical and often overlooked ingredient in driving your club to new heights. Most members are willing to support the leadership in their efforts, if only they had a better sense of the intended result.

Assuming this to be the case, it is then up to the leadership to provide the context and message that builds alignment behind this vision. Many boards are reticent to provide members details about the innerworkings of the club or the changes necessary to realize its vision. It is the absence of this message that leads to disgruntlement and frustration.

Communications is a critical and often overlooked ingredient in driving your club to new heights. Most members are willing to support the leadership in their efforts, if only they had a better sense of the intended result. While there is often high satisfaction with the amount of information that comes their way on upcoming programs and events, members continue to feel in the dark on how or why decisions affecting the club’s direction are made.

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strategic plan and supported with regular updates throughout the year. Quarterly reports play a valuable role in this process. More effective communication doesn’t mean more frequent, it means timely and informative. A nice quarterly summary will often do the trick.

Club boards are duty-bound to develop a vision and supporting strategies for their club. It is clear that more and more boards are embracing this responsibility and developing a plan. All too often, they fail to make the sale to the members because they don’t share the news. Whether you want to be President of the United States or simply want your club to be successful, share the vision with your constituents in clear and unambiguous terms. It’s a great way to attract a following. BR

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RONALD F. CICHY Ronald F. Cichy, PhD, O.M. has been a professor at his alma mater, The School of Hospitality Business, since 1988.

EXECUTIVE COMMITTEE

Understanding Millennials Let’s pretend for a moment that we can generalize about a generation of people.

By all reports, Millennials are, as a generalization, the most highly educated in history. Some say this cohort, born between 1976 and 2004 (other ranges are sometimes used), is looking to pursue a meaningful career through personal development.

Those who categorize the Millennials point to 59 million native-born American Millennials, who often come across as too choosy, wanting a better quality of life as they define it, and work and personal schedule flexibility.

Millennials like to use the word “like”, and like the rest of us want to feel appreciated. They prefer making friends by “liking” each other using technology, rather than face-toface communications. They want their information in small chunks with photos and videos posted through apps or text messages. “Be frequent, be brief, and be ‘techno’” are the three elements of effective communication with Millennials.

Rather, Millennials seem to be staying away from private country clubs and sports clubs.

For those who do want to be a part of a private club (granted most often the parents have paid the initiation fee and the monthly dues), they want to be at a club with their family at family-friendly events and activities. They want “their” club to take an active role in community collaboration on issues such as sustainability and support community causes.

When they visit the club, they enjoy craft beverages and unique experiences. They are multicultural in the sense that they enjoy foods that contain multicultural ingredients and flavors. And when a food is also locally sourced organic or natural, it fits with the values of Millennials.

They like casual edgy design and hip spaces. As a club member, they like to flash their membership card, get discounts at food and beverage outlets, and be able to reserve experiences via texting.

Private clubs’ boards of directors and committees must acknowledge that the Millennials are the future. As each

However, one constant is true. Human beings like to be with each other in social events and activities. By gearing these to Millennials, and by building technology-based communications with Millennials, the future of private club membership can look bright.

Millennials want to make a difference in their work and in their life. Their focus is happiness at work and satisfying a sense of meaning. Technology-mediated connections assist Millennials in being purposeful in life, contributing value with an impact, and helping others. These make life worth living.

Burdened by record levels of student loans, Millennials are in debt after obtaining the most education of previous generations. They know it is a challenging job market.

Some say that Millennials are lazy, narcissistic, and selfish. Economic circumstances find them living with parents while rethinking what it takes to be successful and repaying student loans. Millennials have concluded that success is less about acquiring material possessions and more about a sense of meaning and making a difference.

So how do private membership clubs fit into the Millennials world? While one might believe that clubs may provide Millennials with opportunities to live into a life with meaningful purpose, this is not necessarily the case.

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generation comes of age and engages in their private club, their needs, wants, and expectations are likely to evolve.

However, one constant is true. Human beings like to be with each other in social events and activities. By gearing these to Millennials, and by building technology-based communications with Millennials, the future of private club membership can look bright.

Reach out to the Millennials in your club. Pay attention to them, get to know them, engage them, and invite them to tell you what is most meaningful to them, and how the club can play a significant role in satisfying their purpose.

Think beyond “let’s set up a Millennials’ committee” and “let’s figure out how to get them to attend our events.”

Rather, see the world through their eyes mediated by technology, awareness of becoming significantly purposeful, personalized experiences, and the age-old sense of belonging. BR

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RITA B. CRAIG Rita B. Craig, president of Top Tier Leadership, is a leadership consultant, trainer and keynote speaker. She can be reached at (561) 775-3396. www. TopTierLeadership.com

EXECUTIVE COMMITTEE

Leadership in a Time of Change Come gather ‘round people Wherever you roam And admit that the waters Around you have grown And accept it that soon You’ll be drenched to the bone If your time to you is worth savin’ Then you better start swimmin’ Or you’ll sink like a stone For the times they are a’changing’ Bob Dylan published this famous ode in 1964, but its message – its warning – is as fresh today as when it was penned. Change is occurring at such a rapid rate today that it threatens to leave laggards in the dust.

Which is not where smart business leaders want to be.

The concept of leadership itself is complex. Some of the old rules don’t apply. So how can modern managers not only keep up but shine in such a challenging environment?

Begin at the beginning, experts advise. Realize that how you were trained – to keep the wheels greased and running effectively – may need updating, if not reworking. Remember that change can be threatening, so pay particular attention to the human side of the organization. Announcing, “We plan to make some changes … “, even if done in the most positive manner, may be heard as an invalidation of people’s previous work.

“What have we done wrong? Did we mess up?”

Remember too you’re addressing many Millennials who don’t have the experience and perspective of senior employees.

Because change disrupts the status quo, it can create skepticism and an erosion of trust at the very time you most need a loyal, enthusiastic, productive workforce. So, when expressing news of upcoming change, use positive words such as collaboration, innovation, hope, opportunity, encouragement and confidence. Remember that leadership is about focusing on future possibilities, inspiring others with a vision.

Two questions that bedevil many leaders are: How can I address the people side of change without jeopardizing the 72

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business side? How can I make tough decisions without losing sight of the emotions and concerns of employees at all levels of the organization?

Kerry Bunker and Michael Wakefield who manage the Executive Excellence program at the Center for Creative Leadership in Greensboro, North Carolina, say, “We’ve found that the answer lies in building trust through authenticity.”

When leaders focus on trust, they find they can be both tough decision makers and empathetic people managers, committed to the plan yet understanding the discomfort it might cause.

And keep in mind that you are in the driver’s seat.

“In today’s global business environment, it’s no longer enough merely to respond to change,” according to a course at Northwestern University’s Kellogg School of Management. “Successful leaders must be driving change, being catalysts in helping a business evolve toward a new level of excellence. You’ll leave this innovative program equipped and inspired that your enterprise will succeed in the face of relentless change.”

Management experts also have some personal advice.

While being a change agent focuses on leading others, it is also a personal journey, a transition during which leaders should think of themselves. They should re-engage with their lives outside work, rediscover themselves, family and friends. This often creates a new feeling of purpose and meaning.

Finally, it may help to remember that the change you face now isn’t an isolated example. It’s part of an ongoing challenge that’s been confronted by leaders throughout history. It reportedly was Heraclitus, a Greek philosopher who lived around 500 B.C., who said, “Change is the only constant in life.”

Which is what Nobel Laureate Bob Dylan may have been thinking when he wrote another famous song that ends with the ambiguous lines: The answer, my friend, is blowin’ in the wind The answer is blowin’ in the wind. BR

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LARRY HIRSH

EXECUTIVE COMMITTEE

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

The Politics of Clubs Much Like Washington

After the heated political season, also at the time many private clubs were doing their budgeting for next year, I thought it might be interesting to compare the politics of clubs with the politics we hear about on the news every night.

Particularly with the various forms of member-owned clubs, governance can take on different forms. Most are governed by boards of directors, typically with committees for various departments within the club, such as golf, greens, house, social, tennis, etc. A “benevolent dictator”, however governs some clubs, which is basically one individual who has the authority to make all decisions with respect to the operations of the club.

In Washington, there are generally two groups (Republicans and Democrats) that debate policy. Democrats are known for spending and taxing while Republicans argue for fiscal responsibility and stricter budget controls. At clubs it’s not much different.

While there are no names for the groups, there are also often two groups that dispute the path forward. One group, typically older members aim to preserve tradition, implement more rules and refrain from spending and reinvesting in the club. Conversely, many younger members seek modernized facilities, fewer rules and less emphasis on tradition in favor of progress.

Often, the division isn’t based on age, but rather economics. Many clubs risk losing those members at the bottom of the club’s economic ladder, which can be lethal to a club’s future if the cost of membership increases to a point of putting membership out of reach for some.

Like Washington there is often considerable debate on every issue and limited willingness to compromise. I’ve seen this fact alone precipitate the demise of several clubs.

Unlike our government, many clubs change leadership far too often.

At some clubs, the president and board change annually, which causes a lack of consistency.

Conversely, clubs that seem to be run by “the same old crowd” and this occurs as much because some seek the associated power base because nobody else wants the responsibility. In either case, club leaders are typically volunteers, usually have full-time careers and despite 74

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being successful and intelligent, don’t run clubs for a living.

The committee/board model is rarely efficient and it’s not uncommon for the professionals to be told how to do their jobs by the amateurs.

Long-range planning is often overlooked by boards seeking simply to get through the year so they can hand off the baton to the next board. One issue of great concern is transparency. Just like Washington.

Often, boards act in secrecy rarely communicating with members, soliciting their input or considering their desires.

Boards typically have nearly absolute autonomy and those individuals that control the board control the club.

Club politics can be ugly (just like governmental politics) and at many clubs those selected as club leaders sometimes micromanage, and interfere with the professional staff, sometimes expecting and demanding preferential treatment at the club.

The sometimes laborious and time-consuming decisionmaking process of board-run clubs can and often does prevent adequate and timely response to daily issues.

Many boards are too large (some with 20 or more members) and it is not uncommon for board meetings to last long into the night with little getting done as each director contributes their two cents. Much like government, boardrun clubs are anything but a model of efficiency.

Club Corp founder Robert Dedman, once said that clubs are “run like nobody’s business, because they are nobody’s business.” Conversely, it should be noted that most member-owned clubs are “not-for-profit”, and decisions are made based on member satisfaction (not a bad thing) or (more troubling) based on the personal desires of some club leaders.

There are a considerable number of clubs with this operating model that find themselves distressed to the point that there are several firms seeking acquisitions in this segment to be converted to for-profit facilities. When boards turn over too frequently, there is inconsistency but some maintaining leadership roles almost in perpetuity, can result in those individuals accumulating excessive influence and creating animosity.

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MATT GUZIK

ON THE FRONTLINES

Matt Guzik, CMM is general manager of Tara Iti GC, a private club designed by Tom Doak that opened in October 2015 amidst the dunes some 100 km northeast of Auckland, N.Z. Matt, over the years to raise funds for charities, competed in 56 marathons, on all seven continents, the last one in Antarctica on March 10, 2009.

New Zealand’s Tara Iti Golf Club It’s a Super Yacht Luxury Experience When I sat down with Ric Kayne before accepting the general manager’s position at Tara Iti Golf Club, he laid out his “vision” of what he hoped to accomplish here in New Zealand: • Create a place, unique in the world, where friends and family for generations to come can enjoy the game of golf in the extraordinary natural setting and culture of New Zealand • Provide a platform for an unforgettable golf experience, where the rich traditions of the game are honored and celebrated • Produce an exceptional member experience abiding by the traditions of Kiwi hospitality and delivering the highest level of luxury service, one that anticipates needs in a genuine, thoughtful and relaxed manner.

That was the “what.” Yet it was Ric’s explanation of “how” he wanted us to deliver this level of service that intrigued me. “Super Yachts,” Ric said, with a smile. “Can we amalga-

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mate an exclusive, world-class private club experience with super yacht luxury service?”

“Why not,” I replied.

And so it began as we assembled our team. Our director of golf, Paul Reid is a Kiwi who worked at Northshore Golf Club (where his father was the pro) as well as Kauri Cliffs, one of world golf’s elite resorts; C.J. Kreuscher, the golf course superintendent, had previously worked at Bandon Dunes, and I had been general manager at The Stock Farm Club in Hamilton, Montana (and before that GM at Interlachen CC in Edina, Minnesota). The club side of things was covered.

Crucially, we then added the professionals that boast super yacht experience. Cedar Watt to handle interiors and guests relations, Wendy East for food and beverage, Ben Mills as chef, Bevan Pelham, maintenance, and Marital Johansson as head of housekeeping. It was through them

that we began to develop our club culture and the distinct super yacht qualities that suffused that culture.

Let me tick off a few key aspects of the super yacht ethos that have indeed rubbed off on our club operations at Tara Iti GC. Communication: Super yacht crew are used to working with radios attached to their hips. In fact, they can barely live without them! Working on a yacht, the whereabouts of guests is not only crucial for the pleasure of the guests themselves, but also for the safe and smooth operations of the entire vessel. As soon as guests step ashore, the yacht is pulled apart and becomes a hive of activity: re-anchoring, washing down, re-fueling, provisioning, and hoovering (remember, this is New Zealand, where Britishisms abound). The crewmembers keep each other informed so they can have everything back in its place and perfect when the guests step back aboard – as though nothing ever happened.

It is the same on a smaller scale. Every time a guest goes to the bathroom, it is cleaned. The stewardess on service will let housekeeping know. Every time a guest makes slight mention of a desire, it is communicated by radio to the captain/chief steward so it can happen before the guest needs to ask for it again.

Preferences are requested before a charter, but they are also monitored throughout. They are communicated to the relevant departments immediately and worked into a

menu, itinerary, or experience so the charter becomes bespoke to their unique preferences.

Intuition: People ask what makes a good steward or stewardess and the answer is simple: Intuition is the most important quality in super yacht crew. The intuition to know how much attention a guest needs…when to chat, how much to engage, and when to walk away, intuitively grasping a guest’s material needs and preferences.

Unfortunately, intuition cannot be taught. But when you find the golden staffers who have the gift – to deal effectively with some of the most powerful, difficult and charismatic people in the world – you do whatever you can to hold on to them. All other skills can be taught.

Team work: Having intuition carries through to understanding and helping teammates. Working in a small team, everyone needs to chip in and help out wherever necessary.

It is not uncommon to call deck hands in to help wash dishes, when the interior team is slammed during evening service. Or to send the interior team out to help wash down when a charter is over – to make sure everyone gets packed up and departs with everything in tow. Think about it: If one crew team is left behind to pack up and lock up, whilst their peers have headed out for off-duty cocktails, there will be resentment. Everyone is literally ‘in the same boat.’

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MACDONALD NIVEN

ON THE FRONTLINES

MacDonald Niven, MA, CCM, CCE is with Niven Research and general manager of Almaden Golf and Country Club, San Jose, CA. He can be reached at (510)-439-8522 or via email: mac@niven.cc.

Elements of Success were any clear indicators of success. So I asked the group: “Please respond with at least one thing that is an important indicator of your club’s success.” I received 29 different indicators, which will be referred to as elements. I then listed those elements in a surNinety-four participants in that session have communicated vey and sent it out to the group. actively since that time, sharing issues, technical questions, situaHere are the results of the Elements of Success tions, and any other club related business of interest. survey. The responses, on a scale of 1-7, are Participating managers and directors offer their own experiranked 1-29 according from the highest to lowest ences or perceptions in their responses. I compile the responses, average rating, meaning from the most important and send out a summary, which may or may not include an editoto least important. I used the director responses rial by me. We have had 67 different issues over the past several as the standard by which to measure, because it months and our group has grown to 154 directors and managers. would seem that what is important to directors Over the past decades, I’ve seen what I consider to be very sucshould be important to managers. cessful clubs and not-so-successful clubs, and wondered if there As the old business adage goes, “Beware of analysts bearing surveys.” The survey below can be interpreted in many ways, but I believe the key is to align this with what your directors are thinking.

It appears from the top 10 listing that directors are mostly concerned with the intangible items pertaining to pride and perception – which makes a great deal of sense, since club membership is about being part of a group with of people with similar characteristics.

Of the top 10 director responses, nine pertain to pride and perception and only one is tangible (financial break-even). It’s very interesting that issues pertaining to member costs are numbers 12 (tolerable dues level), 23 (no operating assessments), and 26 (consistently low dues increases).

While the ranking differentials are pretty close, the one that stands out may be the one with the most impact – financial break-even. A nine-point differential is pretty significant and in this case, a misunderstanding of financial importance might mean the difference in the general managers holding a good job and the directors “making a change.” This ranking differential correlates with a previous survey response in which presidents gave incompetence as the most likely reason for manager termination.

If you would like to participate in this group or would like a copy of the survey template to use at your club, please contact me at the address below. BR During the 2016 CMAA World Conference in San Diego, Terra S. H. Waldron, CCM, CCE; Calvin Bolling, CCM, CCE, and I moderated a discussion on the relationship between the general manager and board of directors.

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from On the Frontlines | 77

Yacht crewmembers on land carry this attitude with them. An extra 10 minutes correctly packing down at the end of the night shift takes a huge weight off the teammate who’s on breakfast shift at 6 a.m. the next day. Although there is rank on board, all crew are seen as equal when on charter. The value of housekeeping and laundry is well respected for the work they do behind the scenes (and frankly there are elements of housekeeping in every role).

Passion for detail, memory creation… Any competent private club staff member cares about the “guest experience”, which is shaped on some level by intuition and a sense of hospitality. But all super yacht staff seem to share the same passion for “creating memories.” They genuinely enjoy seeing guests happy. (Not surprisingly, super yacht crewmembers are master networkers and relationship builders, perhaps without knowing it. They have no ulterior motives.)

Super yachts are ‘super’ not because of their size, but because of the ridiculously high level of luxury that can be found in every single detail. Not only is the cleaning detail extreme (tooth picks and Q-tips being common tools), but also the thought process behind guest experiences is planned out to every last detail.

For example, when packing a picnic for a guest, there will be a massive checklist. To send a guest to the beach with

nothing but a towel and a bottle of water would be blasphemy, especially when you could create something amazing and memorable instead.

The art of being busy: Super yacht crews are expert at looking busy. You will never see a crewmember looking bored, leaning on furniture, or sitting down with guests.

They will fuss, polish and tidy. If they sit with guests they will perch on a chair/stool, interact and keep an eye on drink levels, cushions and preferences, whilst carrying out conversation.

At Tara Iti, we have lists of ‘what to do when you think there is nothing to do’ to avoid any wasted time. But to be honest these are not needed on yachts, and rarely needed at Tara. Crew members know exactly what they can do to make their job easier – at pack down, or to make the next person’s job easier, or even to make the job easier when the charter ends (stock taking for example). They are masters at doing these small jobs while always keeping an eye out for guest needs.

For all these attributes and some I’ve surely forgotten, I would encourage any club to hire an ex-super yacht crewmember or two. Their skills rub off. I’d also highly recommend CMAA students intern on a yacht, allowing them an overseas experience and a great learning opportunity. BR Ric Kayne is the Los Angeles-based financier who founded the club.

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MICHAEL CHASE Michael Chase, CCM is general manager, The Beach Club of Santa Monica, CA. He succeeded Gregg Patterson who retired in 2016.

ON THE FRONTLINES

Looking Beyond the Paper A 2016 GM Transition

In today’s club management world, we often hear of the impact of Millennials, both as prospective members and employees. In fact, countless articles have been written on the subject.

One area that has been largely overlooked is the “changing of the guard”, that is, the transition from Baby Boomer general manager/COOs to Millennial general manager/COOs. General manager/COO transitions are important – for manager, staff and especially the club – and early (and likely long-term) success relies on a smooth transition.

It’s important for all parties to realize that many GM transitions today are tenured Baby Boomers to first time Millennials, and understand that the two managers (generations) view the world differently.

For example, many Boomers shy away from technology or reluctantly use only the necessary components, whereas Millennials have grown up with technology as a way of life.

Many Boomers may find modern human resources to be a burden or an unnecessary step or expense, whereas Millennials worked their way up the ranks with an HR director overseeing and scrutinizing their every move.

Many Boomers may feel college grads and first-time managers need to “earn their stripes”, keeping pay and/or benefits low as long as possible, whereas Millennials worked their way up in the industry in the recent past and have seen countless peers “burn out” or leave the business because of the cost of living, or in search of a better lifestyle.

When looking for the “right fit”, be it from the club’s or manager’s standpoint, looking “beyond the paper” is important for a smooth transition. Of course, it’s important for a club to look at a prospective manager’s pedigree - the clubs they have worked at, managers they have worked for, and accolades or affiliations within the industry.

It is equally important for a prospective manager to look at the culture of the club, make-up of membership and governance dynamics to ensure a potential club is the right step in a budding career. To ensure the right fit and a smooth transition, both parties should look beyond the obvious and look for intrinsic similarities between outgoing tenured manager and incoming manager.

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In the case of the recent transition at The Beach Club, a club known around the world because of Gregg Patterson’s renowned “preaching and teaching”, the fit on paper may not be so obvious.

Sure, the BC is a well-known affluent club that has been recognized for its service, staff and “experience.”

Sure, the “new” Manager’s background includes many of the same accolades.

However, the BC has often referred to itself as a “funky little club on the beach” and the tenured (30-plus year) Boomer manager was known to do radical things at the club that most clubs or managers would never dare.

An “old guard” club in Philadelphia and prestigious golf club in Florida highlights the incoming Millennial manager’s background, and the fact the incoming Millennial, me, had never held a professional position west of the Mississippi.

The transition could have gone terribly wrong. There were many at the club who were skeptical of the age and background of the “newbie” and one industry insider led the “newbie” to believe The Beach Club was a glorified ice cream shack on the beach and a career killer.

So how have things gone right? The answer lies in what is “beyond the paper.” While both the incoming manager and transition committee performed their due diligence and checked off the obvious boxes, the key to the success comes down to intrinsic similarities between the outgoing Boomer and incoming Millennial.

Both believe the core of any club is hospitality and relationships, and that staff and members must be equally valued. Both believe in creativity and taking risks, if the expected outcome will put a smile on members’ faces.

Both believe member value is derived from a club by the day in and day out experiences, not from the amount of money that can be spent, ranking(s) a club may receive or “badges” a club may wear on its chest.

At The Beach Club there is no doubt that in the coming years technology usage will increase, HR practices will change and staff models will transform. However, the legendary Beach Club culture will carry on live and well, because of the intrinsic characteristics of two managers that seemed so vastly different at first glance. BR

KRISTOFER J. FAIR Kristofer J. Fair, CCM is the GM of Blue Bell Country Club in Montgomery County, PA. He is a past president of Philadelphia and vicinity CMAA and a present board member of the Valley Forge Visitors and Convention Board. He guest lectures and consults for private club boards. Kris can be contacted at golf.kris@yahoo.com

ON THE FRONTLINES

Inclusive or Exclusive

The Ugly Issue Facing Private Clubs It’s that time of the year to pack up the luggage and head towards the annual conferences that educate the golf pros, superintendents, general managers and board members of private clubs.

Each of these groups has their own conference to highlight the real challenges that face the private club industry.

Looking over the itinerary of this year, it appears to be filled with many of the standard bearers that will pump up the audience with high energy as we leave the conference and head home to be better stewards.

The topics will include; Building A Desirable Brand, Best Practices of Great Boards, Members First Service, How To Manage The Board, How To Communicate To The Members and so many more. Really, all great topics that are relevant to today’s clubs – and will be year after year after year.

But who wants to talk about the ugly sin that creeps into our boardrooms and decisions as we maintain our “exclusiveness” – a branding term that has gone from once meaning “high end, desirable, wait list, sought after club” to being articulated in action as “sameness, monotony, identicalness” – meaning a real lack of influence as we attract new members.

Private clubs are getting so good at this sameness that it has crept into their business model starting with membership.

Private club board members too often forget that they are in the dues business – not the golf, sailing, hunting and tennis business. Their club, to survive, needs to have diversity.

Yet this is overlooked as they seek out members who look like they do, worship only as they do, politic the same and share only likeminded sound bites. The clubs of the future will be very diverse – only because there is not enough of sameness out there to maintain the club into perpetuity.

The real forewarning is the number of clubs that are selling to organized management companies that see the failures of the private club model and are buying these clubs knowing the problem resides in two main areas: The need for diversification of membership to a broader spectrum of candidates and the controlling of labor.

Business 101 – managing the top income line and the largest variable expense line.

Clubs are piling on debt – be it secured debt through lenders or unsecured debt through bonds with members.

The ability to repay those capitalized funds becomes harder year after year as new capital projects emerge and need to be … capitalized.

In response, in addition to dues, we add on a capital fund monthly payment, a long range yearly fee or other instrument. Your fellow club members only see it as a dues increase.

Enter the management companies that can afford to absorb the debt in exchange for complete ownership; no more equity club but now non-equity. No more membership committee but rather membership director. The test for membership will change – and for the better. The club business model will change and the industry will carry onward.

I respect the board member who volunteers their time to earnestly move the club forward. Their passion is real and their life experiences are proven to be beneficial for the equity clubs.

The downside is the fact the private club industry is a very big business – and many members treat it like their hobby.

Meanwhile professionals who are educating in club management are seeing the fault lines in the historic cultures of clubs and will buy more and more as time goes by. There is an upside to this reality.

Those same management companies will most likely rebadge your GM, head professional and superintendent – because they know the value these individuals bring to the business. All your professionals in PGA, CMAA and GCSAA are being educated on industry trends, financial management, efficiencies and board communications.

When they head back from their conferences this year, learn from them. The common theme in this year’s education is going to be the diversity that is the very future of private clubs. It doesn’t mean your club culture has to change. No, just how you go about expanding your influence to a larger target market.

If your club doesn’t have a wait list – or worse, a wait list to be paid back – now is the time to change the viewpoint on how your club will enter 2020 and beyond.

A diverse membership begets additional members from a greater circle of influence. The greater the circle, the stronger the club will be.

Here’s to the bright side of being a board member in 2017. Thank you for the service you offer to your club and support you offer to your staff. BR JANUARY/FEBRUARY 2017 | BOARDROOM

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ROBERT A. SERECI Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, Illinois.

He can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org

ON THE FRONTLINES

Blue Jeans

The Crossroads of Tradition and Change I’d like to beg everyone’s indulgence and to ask for your engagement of…are you ready…blue jeans.

Now I know that some of you are thinking, “what is the big deal about blue jeans, I wear them all the time?” While this is true for many of us at home and while we’re about town, but within the friendly confines of Medinah Country Club, blue jeans are taboo…forbidden.

Dress codes are extremely important to any organization’s culture or standard of existence, but in the case of country club life, dress codes may be a very influential deterrent to someone contemplating joining a club.

Dress codes do not play a direct role when a prospective member is deciding to join a particular club, however, rigid dress codes may subconsciously influence that prospective member in how they perceive the club community.

I always hear, “we tried casual Friday at work and it didn’t work very well.” I agree, it doesn’t work well in the workplace. But your club is not work.

Or, “many Chicago clubs do not allow denim.” While that may be true, I also think it’s important that we shy away from adopting the policies of other clubs and focus on ourselves, developing policies that speak directly to our club’s culture and demographics. We are Medinah and not the other guys.

Why this discussion about blue jeans? For any club’s long range existence, it always relies on attracting new generations of members, and with each new generation comes different mind sets, customs and desires.

To ask a new member today to dress like members did in 1970 would naturally make them recoil and think, “I don’t want to be a part of that scene.” Fact is, members do not join

To ask a new member today to dress like members did in 1970 would naturally make them recoil and think, “I don’t want to be a part of that scene.”

Fact is, members do not join clubs because of dress codes. However, they will choose a club where they feel comfortable and find common interests.

To me, belonging to a country club is like adding a room onto your house. Your club is an extension of your living space and should be a location where you go to escape work, stress or to find your personal happy place.

Member usage is the key component to a club’s success and longevity, and to influence any member to frequently use their club we must take the proper measures to ensure that they feel comfortable in their surroundings.

This conversation has already started as several members have broached this topic with me in our club discussions.

Please don’t get me wrong, I love tradition, history and prestige, but I also value diversity and have a strong sense of reality when it comes to changing times and minds. Not too long ago, attending your Sunday church service meant putting on your best suit and tie or modeling your favorite fashionable dress.

Now, it is commonplace to see casual wear that includes collarless shirts, ladies’ slacks, Nike shoes and yes, blue jeans.

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clubs because of dress codes. However, they will choose a club where they feel comfortable and find common interests.

So now here we are at the crossroads of tradition and change. How do we avoid the collision? We need to think of how we can achieve a “win – win.”

We need to respect the desire of the member who enjoys dressing up at the club and wants to be surrounded by like appearances, and at the same time find opportunities for the new generation member to be casually comfortable in their environment.

To me, the answer is in defining geographical zones where the wearing of jeans is acceptable.

This calls for baby steps and clarity of thought, not to mention some trial and error. Friends, we can do this! And, I remind you that Latin became a dead language because its structure did not accommodate for change. BR

EXCELLENCE IN ACHIEVEMENT AWARDS DEADLINE 10/13/2017

The BOARDROOM magazine is now accepting entries for its 2017 "Excellence in Achievement" Awards. The awards recognize both vendors and educators for their impact, achievements and contributions to the club industry. All award entries and nominations must provide supporting materials to be reviewed by an independent panel of industry experts representing various aspects of course and club operations. Winners are selected for overall excellence in their respective fields, innovation, vision for future growth and continued impact on private club operations. Winners in each category will be featured in an issue of The BOARDROOM magazine in 2017.

For more information, call (949) 376-8889 or email John Fornaro at johnf@apcd.com or visit www.BoardRoommagazine.com.

Category:____________________________________________________________

Company:______________________________________________________________

Address:____________________________________________________________________________________________________________________________________________ Phone:__________________________________ Fax:__________________________________ E-mail:________________________________________________________ Nominating (if different from above):__________________________________________________________________________________________________________________ Include the following supporting materials: 1) A one-page explanation of why the product/service/company deserves to win its category in 2017, 2) media kits, 3) press releases, 4) testimonials and 5) marketing materials.

Mail entry form, supporting materials and $50 processing fee per entry to: The BoardRoom magazine “2017 Excellence in Achievement Awards�

PO Box 9455, Laguna Beach, CA 92651 or FedEx to 1100 South Coast Highway, Suite 309, Laguna Beach, CA 92651

CATEGORIES MAY INCLUDE: Course Architect (new course), Course Architect (renovation), Course Contractor/Developer, Irrigation Company, Course Equipment Manufacturer, Course Maintenance Company, Golf Cart Company, Turf Maintenance, Fertilizer, Clubhouse Architect, Clubhouse Builder, Clubhouse Interior Design, Master Planning, Fitness Consultant, Fitness Equipment, Furniture Manufacturer, Outdoor Furniture, Outdoor Cooking, Kitchen Equipment Manufacturer, Food & Beverage, Banquet Equipment, Pro Shop Interior Design, Menus, Amenities Provider, Apparel Provider, Clubhouse Signage, Tennis, Lockers, Club Service, Event Equipment, Construction, Executive and/or Department Search, Finance, Insurance, Law, Strategic Planning, Tax Consultant, Payroll, Research & Data,Software Developer, Technology Product, Website, Communications, Mobile Technology, Social Media, Online Reservations, Advertising, Marketing or PR, Membership Marketing, Photographer, Private Club Marketing, Lifetime Achievement, Jim Singerling Leadership, BoardRoom magazine Dedication, International Leadership, Gary Player Educator, The Jay DiePietro Vendor, Apparel Company, Association Program, Association, Club Management Company, Consultant Company, Club Services Association, Developer, New Product, Purchasing Services Group, Research and Data, Real Estate, Winery and more.

STEVE MONA

THOUGHTS ON THE CLUB INDUSTRY

Steve Mona is the chief executive officer of the World Golf Foundation. He may be reached at (904) 940-4000 or via email: smona@worldgolffoundation.org.

Health Benefits of Golf Are Many The golf industry for the past several years has been focused on communicating the key attributes of the game that are sometimes misunderstood by the general public.

Specifically, the golf industry’s key messages include: the economic impact of the game, the charitable impact, the environmental impact, the health benefits and the accessibility of golf. These messages are communicated through a wide variety of media outlets, both within the golf and sports media, as well as in the business, environment and lifestyle media.

Here is a brief overview of two of these five key message points, specifically, the health benefits of golf and the charitable impact of the game.

Health benefits: This is one of the key message points that the golf industry communicates. Specifically, the industry strongly emphasizes that playing golf provides health and wellness benefits that should be known to those who

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play the game or those considering taking up the sport. In 2015, the World Golf Foundation board authorized a yearlong study, led by Dr. Andrew Murray of the University of Edinburgh in Scotland, to quantify the health benefits of golf. Highlights included the fact that golfers live up to five years longer than non-golfers and that playing golf regularly can have positive benefits on one’s strength and balance, particularly among senior citizens.

You can view the results of the study by visiting golfandhealth.org.

Now that golf is part of the Olympic games and considered a sport, it’s important for the golf industry to be able to quantify the specific health benefits of playing golf. Future additional research is being contemplated to explore other elements of golf’s health benefits, including the benefits of spectating at golf events in which fans walk some or the entire course as part of their experience.

We encourage club leaders to make known the health benefits of golf to their membership and other stakeholders. Many decisions made by today’s consumers involve health and fitness considerations. Golf has a good story to tell in this area.

Charitable impact: Golf generates approximately $3.8 billion in charitable giving through golf events that take place on approximately 12,000 of the nation’s 15,000 golf facilities. More than 144,000 charitable events are conducted in the United States annually, with approximately 12 million golfers participating in at least one event.

Golf creates more charitable dollars then the NFL, NBA, MLB and NHL combined. Virtually all of the money raised through golf benefits local charities whose missions are unrelated to the game.

The golf industry believes that it has a very positive story to tell about golf’s charitable impact, and encourages club leaders to make this known to its membership and the community at large in the areas in which its club does business.

Golf clearly provides a substantial asset to its surrounding community, as its charitable impact demonstrates.

Participation and interest in golf is directly influenced by one’s perception of the game. That’s why it’s critically important for golf to communicate its attributes to as wide an audience as possible. If the golf industry can successfully change its perception among non-golfers, it can achieve significant growth from both a participant and fan standpoint, which will benefit all sectors of the golf industry. BR

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NANCY M. LEVENBURG

PLIGHTS AND INSIGHTS

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 Nancy at: levenbun@gvsu.edu or (616) 331-7475.

Marketing to Singles

The Numbers Are Large and Growing If you and your club have all the members you want or need – for now and forever into the future – then you might as well quit reading now.

But if you’re looking to grow or expand your club’s membership, read on…

YOUNG FAMILIES VERSUS SINGLES

I fully recognize the value – and current trend – in today’s “focus on the family.” In Millennials’ homes (aka Gen Y-ers or the Net Generation… those born between 1980 and 1995), the current heads-of-households are at – or just reaching – the age at which people traditionally joined a country club (i.e., late 30s).

They’re also a large and growing group. According to the Pew Research Center, Millennials now number 75.4 million, exceeding both the Baby Boomer generation (aged 51-69 years) and Generation X-ers (aged 35-50 years).

I also appreciate the fact that the majority of private clubs today feel that family-oriented clubs will prosper in the future. So while young families are an expensive market to serve (e.g., golf camps, sports camps, babysitting, “Kids Eat Free” meal deals), I totally understand why clubs across the U.S. are gearing up their programs, events and even menus to appeal to young and affluent, family-focused people.

But, there’s another population segment that is large and growing in numbers – singles.

Between 1999 and 2014, the number of single-person households increased to about 34.2 million from 26.6 million, an average annual rise of 1.7 percent. That’s a higher growth rate than the growth in total households (which means that the percentage of single-person households among all households has risen).

And, interestingly, the highest growth segment among single-person households is in the above-55 years age group, which (coincidentally!) is exactly the same mean age group as most country club’s members… a prime market!

IN SEARCH OF SINGLES

On one recent Saturday evening, I saw my “all dolled up” next-door neighbor (a divorced woman in her 60s) get

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ready to climb in her car. “Going out on a date?” I asked.

“No,” she replied. I’m going to Singles Night at a church in Grandville… I’m just not into the online dating thing.”

(Grandville is about a 45-minute drive away from where we live.)

Seriously, I thought? You’re going to spend an entire hour and a half driving – just to mingle with other single people?

Isn’t there something closer?

With high discretionary income, this affluent group of “had kids, now launched” people spends heavily on food and entertainment, vacations, and luxury cars and goods.

Isn’t this exactly what private clubs are looking for in new members… people with money and a willingness to spend?

Doesn’t this constitute a prime market opportunity? One would think so. But if so, why do so few country clubs reach out to this population segment?

Traditionally, private clubs haven’t exactly been singlefriendly. As one example, it’s a common practice that monthly dues for a single member are 75 percent of what a married couple pays – and (even worse!) what a married couple with six kids pays!

Does this kind of pricing – or, dues structure – make sense? Those with the highest propensity to spend and requiring the fewest services (singles) are paying the highest dues per capita; in fact, are quite possibly subsidizing those who are require the most services and are the most expensive to serve (families)?

And, how “welcome” in the club does this policy make the single person feel?

My thought…why overlook this potentially lucrative market? Why not reach out to them with single-friendly events, policies and dues?

As I said, if you and your club have all the members you want or need – for now and forever into the future – then you can ignore this column.

If you like what you have now, then don’t even think about changing anything… and that’s precisely what you’ll have for a very long time (i.e., no changes). Else, if you’re looking to grow your membership, why not consider singles? BR

JOHN EMBREE John Embree is CEO at the United States Professional Tennis Association and can be reached via email: john.embree@uspta.org.

TENNIS COMMITTEE

Lake Nona to be Epicenter of U.S. Tennis If you are traveling to Orlando, Fla., in February for the CMAA World Conference, you owe it to yourself to visit the USTA National Campus, “Home of American Tennis,” in Lake Nona – just 10 minutes from the Orlando airport.

• This complex has 100 high-tech tennis courts that truly will be the epicenter of tennis in the U.S. On site will be: • Headquarters of the USTA player development program for touring professionals and aspiring juniors who want the best training environment and coaching techniques available • Headquarters of the USTA community tennis department with more than 250 employees • 12-court collegiate complex where the University of Central Florida will play its dual matches • Eight 36-foot courts and eight 60-foot courts as a testing ground for programs targeted at children under the age of 10 • 64 mini-stadiums with Har-Tru and DecoTurf courts for USA Davis Cup and Fed Cup matches, along with a vari-

ety of national surface championships for USTA age groups and league players This year, there will be more 80,000 players of all levels who will play tennis at this one-of-a-kind facility. For that reason, many allied tennis organizations have been invited to relocate their own operations to be adjacent to this complex and a part of this industry laboratory.

In September 2015, the USPTA was the first to announce that it would be part of this new endeavor. Construction is underway of a new high-tech, eco-friendly 10,000 square foot office complex that will be across the street from the USTA and will be open for business this spring.

It’s an exciting time to be part of the USPTA and to see what can come with the collaboration with the USTA. Come see us! You will be impressed by what is happening here that will benefit the sport across the entire country. BR

JANUARY/FEBRUARY 2017 | BOARDROOM

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ROBYN STOWELL

LEGISLATIVE COMMITTEE

Robyn Nordin Stowell is a partner in the law firm Sherman & Howard L.L.C. in Scottsdale, Arizona. Robyn may be reached at (480) 624-2736 or by email at rstowell@shermanhoward.com.

Make 2017 Your Most Efficient Club Year Here are a few tips to help the club’s board execute its responsibilities most efficiently in 2017!

Conduct an annual board orientation meeting. Conduct

this meeting immediately after new directors are elected.

Even directors returning for a second or third year should attend board orientation. The president and general manager conduct this orientation, and you may also want to ask some of your professional advisors (primarily attorney and CPA) to attend.

The board orientation should include, at a minimum, a review of the club’s key governing documents, such as its bylaws and rules. The life span of many club projects, from planning and budgeting through implementation, will exceed a board year, therefore, board members should be brought up to date on how we got to where we are and where we are headed.

Board members also should sign the club’s conflict of interest policy. Even better, have all board candidates sign off on the board code of conduct, so they come in to office knowing their responsibilities.

This can save time at your board meetings, by providing a starting point for a board action.

Use a consent agenda. Train your committees to submit reports well in advance of the board meeting and include proposed board resolutions. If no board action is required, most committee reports (not finance, for example) can be approved as a consent agenda item. This saves valuable time at board meetings.

Maintain a functional board notebook. The general manager should provide a binder for each director, which should include, with an index and tabbed dividers, the club’s key documents (articles, bylaws, rules, strategic plan), minutes from prior meetings, lists of all committee members and chairpersons, committee reports (possibly separately tabbed for each committee, depending on the number of committees), etc.

Develop relationship with key advisors. The GM will be the main contact with the club’s key advisors, such as its attorney and outside accountants. However, the board should meet these individuals. Most clubs rarely need these professionals to attend their board meetings, but

Train your committees to submit reports well in advance of the board meeting and include proposed board resolutions. If no board action is required, most committee reports (not finance, for example) can be approved as a consent agenda item.

This saves valuable time at board meetings.

Read the key documents for yourself. There is no substitute for reading the club’s bylaws, rules, membership plan, strategic plan, annual budget, etc. Before the board member orientation each year, every director should read the key documents. Another benefit from reading the documents yourself is that you will be prepared to ask questions whenever the club’s professional advisors attend a board meeting.

The general manager should prepare a monthly board packet, and given to board members, at least several days in advance of the regularly scheduled monthly meeting. It should include the general manager’s report of operations, budgets and financials, committee reports, etc. The general manger and president may also wish to provide proposed resolutions that address each item on the agenda.

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some clubs regularly provide their agenda and meeting minutes to their attorney - better to pay for 30 minutes of prevention rather than many hours of cure.

Recruit the right regime. Take the nominating process seriously. Identify areas of expertise needed on the board and the board’s upcoming major projects, and compare that to the leadership coming up through the committee ranks. There are many board compositions that don’t work.

Requiring committee service before a member is eligible for board service works well in many clubs.

Revise those bylaws! Bylaws may include key provisions that you rarely consider. By the time those provisions come into play, it is too late to change them and they may create huge challenges. BR

LEGAL COMMITTEE BY ROB HARRIS

Damages Assessed for Errant Golf Balls We have discussed on multiple occasions the lawsuit brought against the prominent and historic Quaker Ridge Golf Club by an adjoining neighbor claiming trespass and nuisance for an influx of golf balls into his yard.

Even though his home was built decades after the establishment of the club, a New York appellate court held that the neighbor was entitled to relief. The litigation returned to the trial court for an adjudication of the damages to which the neighbors were entitled.

Although the court’s decision is not yet available online, it has been summarized at length in an article on lohud.com. As reported: Both the Behars and the club made attempts to remedy the issue. The Behars spent about $150,000 in 2011 to plant 45foot trees on their property, said attorney Julius Cohn, who represented the family. In 2015, the club spent nearly $1 million on modifications to the hole No. 2, including moving the tee box and trees to block off the Behar yard, according to club president Marc Friedman. A 40-foot net was also erected on the course’s property in 2010.

The club stationed an employee at the second hole for 118 days in 2015 to secure an accurate count of ball incursions on the Behar property; the count found 40 balls may have entered the yard, which equates to about one ball every three days…

The Behars hired valuation expert Daniel Sciannameo to assess temporary damages, whose claims were declared” exaggerated, hyperbolic, and unreliable” by Judge Charles Wood.

“Both at trial and in his report, Sciannameo made wild, sweeping conclusions without any basis,” Wood said in his decision.

A letter sent to Quaker Ridge club members said the Behars were seeking in excess of $3.3 million for punitive damages. Wood’s Oct. 4 ruling awarded the plaintiffs $7,323.75.

“It should not be unexpected that any house abutting a golf course, including the Behar’s house, would from time to time, receive three, four, five, or more balls on a given particular day of poor swings, and that there could be no liability on the part of a golf course for trespass, nuisance or concomitant damages,” Wood said.

Cohn said the Behars “vehemently disagree with the court’s decision” and that the family plans to appeal.

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GREGG PATTERSON

TRIBAL MAGIC

Gregg Patterson served the Beach Club of Santa Monica as its general manager for 33 years before retiring in 2016. He’s also a recipient of Boardroom magazine’s Award of Dedication for his timeless, energetic and dedicated service to the private club industry.

Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com

Married to Clubdom Creators of WOW Builders of Community

Manager Sue, the recently retired 37-year GM at the High and Mighty Country Club, is having her “I Just Retired and Couldn’t Be Happier” dinner with long time squeeze hubby Hugh and their best friends Frank and Liz at their neighborhood restaurant Faux French. Lots of wine, lots of snails and lots of uncorked conversation.

Manager Sue takes a big gulp from her 20-ounce glass of Mojave Red, draws deeply from her bourbon infused electronic cigarette and coos…“What a great time I had in the club business.

“It gave me the buzz, the love and the glow, for decades.

And a career in clubdom is even better when you’ve got a hubby like Hugh who understands, supports and encourages the management journey every step of the way. It’s been painless!”

Manager Sue glows, smiles at hubby Hugh, friends Frank and Liz, downs another big gulp of Mojave Red and sighs the sigh of a happily married club manager.

But, through her wine-induced, bliss-filled haze she notices that hubby Hugh isn’t smiling, is wearing a resting bad boy face, and is giving her the look. Hmm… “Hubby Hugh, what’s wrong! Is your Mojave Red giving you gas?”

Hubby Hugh shakes his head, gives Frank, Liz and manager Sue the long lingering look, takes a double big gulp of Mojave Red, straightens his tie and snaps, “Painless?

PAINLESS? Manager Sue, do you appreciate the sacrifices I’ve made, for decades to support you in your club management career?”

Jaws drop. Manager Sue stares, gulps and squeaks, “Huh???”

Hubby Hugh takes a man sized gulp of his Mojave Red, wipes his chin with the back of his hand and barks, “With all your AAs, BAs and MBAs from all those big name universities, with all your certifications and recertifications from the Club Managers Association, wasn’t there even ONE course focused on the questions that needed to be asked, discussed and answered before a non-hospitality Innocent like me marries an absolutely 90

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looney-tunes-addicted-to-a-career-in-club-management someone like you?”

Jaws drop. Manager Sue stares at Hubby Hugh, gulps Mojave Red and squeaks, “Huh?” Hubby Hugh takes another big gulp of Mojave Red. “Manager Sue, when we tied the knot we were dumb as a rock and hot to trot. I knew nothing about the routines, schedules and commitments of a club-addicted club manager.

I knew nothing about the challenges I’d face and the adjustments I’d make as a club-addicted club manager’s spouse. We were both clueless, the blind leading the blind, and lucky these land mines didn’t go boom and vaporize our big love long ago.”

Silence. Jaws drop. Manager Sue speaks, “Wow.” Bob and Mary speak, “Wow.” Hubby Hugh un-screws another two-liter bottle of Mojave Red (Vintage 2016), pours deep and speaks.

“We should have probed and pondered the big questions before we got married. We had the hots but we needed the how.”

Manager Sue gives Hubby Hugh a quizzical look. “Questions? What questions???” Hubby Hugh drinks deep, and the questions start flowing like well-aged Mojave Red. RIDDLE ME THIS

“If I had a degree in PMQ (pre-marriage questioning) specializing in MCM (marrying a club manager) I’d provoke some conversational heat by asking the non-club-management-spouse-to-be a couple of ‘did you consider this’ questions.”

Hubby Hugh takes another gulp of Mojave Red, clears his throat and begins the asking.

“Do you accept that most looney tunes-over-committed club managers consider club management a “calling”, and that the calling will come first when career / family / geographic compromises need to be made? ”Hmmm.

“And because it’s a calling, do you accept that the career of your looney-tunes-over-committed club manager spouse will take precedence over your career?” Hmmm.

“Are you happy being home alone, Spouseless…lots?”

Hmmm.

“Do you have lots of interests to fill all that home-aloneand-my-manager-spouse-is-at-the-club-working time?”

Hmmm.

“Do you accept that you’ll eat lots of spouseless dinners when the club’s open for business?” Hmmm.

“Do you accept that your looney-tunes-over-committed manager spouse will often be absent and at the club on birthdays and anniversaries?” Hmmm.

“Do you accept that when the dining room’s packed your looney-tunes-over-committed manager spouse WON’T be home when they say they’ll be home?” Hmmm.

“Do you have a support network of friends and family who’ll “be there” to hold your hand when your looneytunes-over-committed manager spouse is away ‘doing club’?” Hmmm.

“Do you accept that club managers are a tightly bonded tribe and that you’ll always be an ‘outsider’ looking ‘in’ because you know nothing about, and care nothing about bridge players, sprinkler systems or pin placement?”

Hmmm.

“Do you accept that your looney-tunes-over-committed manager spouse will be closer to their members than they’ll ever be to your friends?” Hmmm.

portant than family events at the club?” Hmmmm.

“Do you accept that your manager spouse will be more committed to making the members happy than making your family happy?” Hmmm.

“Do you accept that you’ll be the “principle parent” when it comes to raising the kids?” Hmmm.

“Are you ready to deal with job uncertainty, knowing the employment expectancy of a club manager is tragically short?” Hmmm.

“Are you prepared to keep yourself entertained and busy all weekend when your manager spouse will be working?”

Hmmm.

“Are you prepared to create your own “I’m married to a club manager” traditions on holidays, barbecue on a different night than July 4th or Memorial Day; eating Thanksgiving dinner later Thanksgiving night; celebrating New Year’s Eve after midnight, and having Valentine’s Day dinner on another night?” Hmmm………

“And after answering these questions and considering all this, do you still enthusiastically support your spouse’s career, and do you commit to doing what needs doing to keep the marital ship-of-state on an even keel?” Hmmm….

“If I had a degree in PMQ (pre-marriage questioning) specializing in MCM (marrying a club manager) I’d provoke some conversational heat by asking the non-club-management-spouse-to-be a couple of ‘did you consider this’ questions.”

“Do you accept that most looney tunes-over-committed club managers consider club management a “calling”, and that the calling will come first when career / family / geographic compromises need to be made? ”Hmmm.

“Do you accept that you’ll always feel like an alien creature when you visit the club, in spite of the fact that you’ve been introduced to everyone and their sister by your manager-spouse?” Hmmm.

“Do you accept that you, who will be working a conventional Monday through Friday job, many NEVER have two days off in a row with your unconventional work week manager-spouse?” Hmmm.

“Do you accept that the busy season for your managerspouse will conflict with traditional vacation times for you and the kids?” Hmmm.

“Do you accept that your looney-tunes-over-committed manager spouse will work 15 hour days during the season, during holidays and during big events, and ignore you and the family in the process?” Hmmm.

“Do you accept that your family events will be less im-

WE WORKED IT OUT

Hubby Hugh sighs. Manager Sue sighs. Frank and Liz gasp.

Hugh speaks. “Manager Sue, we worked it out, we muddled through, I did what needed doing to support your looney-tunes-over-committed club career.”

Drink. Sigh.

“But, I wish we’d asked these questions years ago. It’d have made all the adjusting lots easier.”

Manager Sue nods…and drinks deep from her glass of Mojave Red. ASK, AND YOU WILL BE GIVEN

Everyone gives everyone at the table the wide-eyed look.

Hugh drinks. And speaks. “Before you marry a club manager always remember, ask the questions, have the discussion, strategize ‘how’ prepare to compromise, laugh lots and...And enjoy the journey…. BR JANUARY/FEBRUARY 2017 | BOARDROOM

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BONNIE J. KNUTSON

MEMBERSHIP MUSINGS

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

Stop the World I Need To Catch Up!

Fact: In the U.S., it took more than 25 years for 25 percent of the people to have television. For computers, the time dropped to 16 years, while it was only 13 years for mobile phones. Fast forward to the internet and this level of penetration dropped to seven years.

Fact: The first generation to grow up with the internet is now in their mid-30s. Today, children in kindergarten are using Power Point, conducting research online, and Skyping with their counterparts in Asia, Europe, and South America.

Fact: Every minute, 300 hours of new video is uploaded to YouTube. Every second, there are 2.3 million Google searches. During that same second, around 6,000 tweets are sent. This equates to more than 350,000 tweets per minute, 500 million tweets per day and around 200 billion tweets per year.

Did you know that the first tweet was sent in 2006, a mere decade ago? It took three years before the billionth tweet was sent; yet today it takes less than two days for a billion to fly through Twitter. And if you have any

So what does this mean for your club? While I could list a litany of particulars, I want to look at two more universal consumer lifestyle trends that affect your members, your staff, and in turn how you market and manage your club in the new cyber world in which we all live, work, and play.

First, all members are consumers, so the fact that virtually every single consumer trend involves the internet means that these trends also involve your members. Fundamentally, the internet has changed the way people communicate with each other, with brands, and with their clubs. So many aspects of our lives now include being online – working, shopping, connecting with family and friends, learning new things, watching TV shows or movies, listening to music, where we go, what we eat or drink, and even how we get our exercise.

This is happening because technology is allowing us to cut the proverbial cord. Instead of being tethered by a cable to a land line, a PC, or a television box in our family rooms, we are using mobile broadband or wi-fi that frees us up to connect and get information where ever we are, whenever we want.

According to a recent study by Hubspot, 71 percent say they are more likely to buy or do something because of what one of their social media contacts have said. And, taking it a step further, 78 percent say they are influenced to buy or not buy by what a business says on their social media sites.

Now, if you extrapolate these percentages to your membership roster, how many members will be influenced to do more and spend more at their club? teenagers around, it will come as no surprise to you that Snapchat has now passed Twitter in daily use.

News Flash! The world has changed. Most of us haven’t.

The only thing that definitely changes about each of us is that, every day, we all get one day older. That reality always brings to mind one of my mother’s favorite sayings: We grow too soon old and too late smart.

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This means that I can “talk” with my club 24/7. The question is, are you ready to “answer” me 24/7? Some recent studies found that nearly half of us are active on more than one social network. So, the next question for your club is not just are you ready to “answer” me, but are you ready to answer me in Facebook, Twitter, LinkedIn, Pinterest, Tumblr, Snapshot, and any other social media site in which I participate?

Secondly, consumers – i.e. your members – have a whole lot more influence than ever before. We call it the lifestyle network effect.

It used to be that marketers primarily focused on how to use the internet to influence consumers. My club did, your club did and, virtually all clubs did.

But now that isn’t the way it works, because we are in the era of prosumers – i.e. consumers are actively influencing what products, services, and programs are offered. And they have an impact on revenues primarily through sharing opinions about their experiences through online reviews, blogs, and through their social media connections.

According to a recent study by Hubspot, 71 percent say they are more likely to buy or do something because of what one of their social media contacts have said. And, taking it a step further, 78 percent say they are influenced to buy or not buy by what a business says on their social media sites.

Now, if you extrapolate these percentages to your membership roster, how many members will be influenced to do more and spend more at their club?

The upshot is this. Social media has graduated from a cute little forum for chatting with family and friends to becoming a “holy grail” of marketing for most businesses – including clubs.

Unfortunately, too many clubs view their social

media presence as an afterthought, which leads to disappointing results. This is unfortunate, given its increasing marketing power. To really make it effective, a club has to establish a clear social media strategy.

As your members continue to become more social media savvy and more social media active, they will increasingly base their membership decisions and activities on what they see on the internet – either from friends and family or from their club.

Perhaps William Gibson, the famous science fiction writer, said it best: “The future has already arrived. It’s just not evenly distributed yet.” So your challenge is to make sure it is being distributed at your club.

Your bottom line will thank you! BR

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CASE STUDY | CORNILLEAU USA

Table Tennis, The Perfect Club Activity Table Tennis or Ping Pong has been a fun activity since the 1880s and became a popular sport shortly thereafter.

It is now the second most popular sport in the world while still maintaining its position as a fun, social activity played by people of all ages.

In recent years, medical studies haven proven that table tennis has many health benefits. It is excellent for improving coordination, increasing cardiovascular conditioning, and increasing brain activity in a fun, easy to play low-impact way. Therefore, it is popular for athletic conditioning, physical therapy rehabilitation, and treating Alzheimer and Dementia patients.

People gather wherever there is a ping pong table to watch or join in a game. Always popular as a home recreational activity, ping pong has been gaining in popularity as a social activity in bars and clubs around the world. Resorts, parks, cruise ships, schools, even prisons have learned that by purchasing the right equipment, table tennis is an inexpensive activity to offer “guests.�

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Cornilleau is recognized as the world leader in providing safe, sturdy, table tennis equipment for all uses. Whether it is a light-duty home model or a super heavy-duty table for parks and prisons, Cornilleau has the right product. Their famous outdoor models are completely weatherproof and shockproof and have a 10-year warranty.

Cornilleau has designed and produced high-quality table tennis tables and accessories at their plant in France for more than 45 years. State-of-the-art production methods, high quality materials, and a thorough quality control process result in the best tables on the market. BR Cornilleau USA is proud to be the exclusive US distributor for Cornilleau table tennis equipment. With 3 warehouses and a full stock of tables, accessories, and replacement parts, Cornilleau USA can meet all of your needs. Visit www.cornilleauusa.com today and give us a call at 888-647-2778 to find out about special discounts for clubs.

DEI FOOD SERVICE EQUIPMENT DESIGN | CASE STUDY

Excellence for All Your Foodservice Needs Fast-paced and rapidly changing, the foodservice industry demands total involvement from its designers, suppliers and consultants.

With more than three decades of experience, DEI is ideally positioned to provide cutting-edge technology, knowledge and industry expertise. These qualities enable DEI to

help commercial and institutional foodservice businesses remain competitive, profitable and innovative in the 21st century marketplace.

Situated on the southeast Florida coast, in Hollywood, Florida, DEI is ideally located to serve companies in the United States as well as South and Central America, Mexico and the Caribbean.

Count on DEI to offer only the best in design, equipment and service. From inception through completion, DEI partners with suppliers and manufacturers that are among the finest in their fields. This commitment to quality, in every phase of the process, provides long-term cost effective solutions for foodservice operation worldwide.

The owners of DEI assure high customer satisfaction by overseeing factory involvement, integrated training, standards, service and quality installation on every project.

DEI invites you to experience total package excellence for all your foodservice needs. BR

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DANIEL J. FARRELL

CASE STUDY

Daniel J. Farrell, CCM, is principal at GSI Executive Search, an executive search firm with offices in Tampa Bay, St. Louis, Northeast U.S. and the Midwest. For more information please visit www.gsiexecutivesearch.com or email dan@gsiexecutivesearch.com.

Trending Issues for 2017 While conducting searches over the last few months, two common recurring trends ring true, which contributed to leadership changes by the boards of various clubs. By recognizing these trends, both the board and GM/COO may work to improve and repair a troubled relationship.

As we begin a search, one of our first questions to the board or search committee is, “What are the primary reasons for the leadership change?” The top answer is a lack of transparent communication. “The GM/COO does not inform us of strategic and tactical priorities with sound recommendations on a timely basis.” Boards expect the GM/COO to collaborate strategically as the club develops new policy and programs. The GM/COO is charged with communicating the tactical club vision to the senior team and ensuring each department is aware of member expectations. ransparent communication is circular and it is the mutual responsibility of the club’s president and executive committee to engage in open and transparent

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communication, avoiding the misalignment of priorities.

Top performing clubs enjoy the benefits of two-way communication with the common goal of One Vision-One Voice, where all stakeholders are aware of a shared vision and mission of the club.

Membership development over the last several years has been challenging for clubs. To grow membership, boards view dynamic programming as the number one recruitment tool. If members consider the club not relevant, they reluctantly support recruitment goals. When the board believes member engagement is slipping, they attribute this issue to the lack of creativity and innovation in programing by the GM/COO. One of the key roles of the GM/COO is to be the genesis and inspire creativity in departmental leadership when developing programming. We are often reminded that clubs expect new and innovative programming designed to improve the member experience, resulting in consistent membership development. BR

PETER CAFARO Peter Cafaro is senior vice president at Judd Brown Designs & Jefferson Group Architecture, an architectural and interior design firm specializing in the hospitality and private club industry. Peter can be reached at (401) 365-1166 and via email at pcafaro@jbd.cc For more information please visit www.jbd.cc

CASE STUDY

What Do Members Really Want?

In every board meeting, every educational session, every focus group the single most pondered question is, what do members want?

There has been much prognostication on various specific topics. Do we improve the pool? Expand our practice facility? Fitness? Add paddle? Build a great bar? And the list goes on! If we build it will they come?

The simple answer is…YES! Over the past year, I have had the privilege of meeting with hundreds of club members of every age and demographic and the simple conclusion is, members just want to use their club. Why else would they join?

We as a society, in case you haven’t noticed, have transitioned into experiential lifestyles. Our grandparent bought cars and joined clubs, yes to use them, but of equal (or greater) importance, as an exhibition of status. Status symbols have all but lost their luster and as generations evolve, the importance of experience is exploding.

Members and those considering becoming members are interested in enriching their lives through experience. They join to use, to socialize, to swim, to eat, to work out and to play. They want to be there in the social environment of their choosing engaged in the activities that add to their life experience.

Therefore, answering the question should be simple.

Whatever expands your members’ life experience through increased usage and enhances social participation in both the traditional club season and especially in the off season is what you should do. Have the proper facilities and of equal importance, develop the proper programs that will engage, enrich and entertain.

Don’t leave it up to the members to just show up. Give them a reason; in fact, give them many reasons and they will show up and they will bring their friends and those friends may even become your next members. BR

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case study | kecamps

KECamps is Proud to be Impacting Their Partner Clubs and Their Members Alike!

“My child loves the activities. She was able to try tennis and golf without signing up for a full week of lessons. Now we know she loves both!”

Karen R., parent, Holly Hills Country Club “Our junior programs are huge with golf involving 300 kids, swim 275 and tennis 200. It is a challenge to get kids involved in programs outside of those but KECamps succeeded.”

Shelly A., membership director, Forest Hills Country Club “My son went to KECamps last summer and had such a blast that we had to manage a countdown system for this summer. He looks forward to camp more than Christmas it seems. This summer was just as exciting for him as last summer.”

Laura L., parent, Sugar Creek Country Club

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“The support KECamps offered was perfect. I never needed to ask for anything - they were always a step ahead!”

Mandy D., event, marketing & activities coordinator, Riverside Country Club “KECamps is a no brainer! We invested far less resources and couldn’t be happier with the results.”

Lindsay A., entertainment director, Evansville Country Club “Every member of your staff made the children feel welcome and excited to see them. We felt at ease sending the children, knowing they were with responsible, enthusiastic and caring adults.”

Angela D., parent, The Landings Club BR

KeviN LiChteN Kevin Lichten AIA is a partner at Lichten Craig Architecture + Interiors and heads up their New York offices. His work includes planning, designing and general consulting for private clubs, especially those occupying historical buildings. He volunteers on the house committee and the council of the 22 story mid-town Yale Club of New York City.

case study

How Do You Tear Down a Building That Everyone Loves?

As one of the oldest buildings on the 140-year-old, thousand-acre club, the house showed its age. The bark had fallen off its log siding, windows no longer closed, the roof sagged, and because most members changed at home in this residential club the locker rooms went unused. But worst of all, the building was sliding down the embankment that separated the six clay tennis courts from the first tee.

Lichten Craig Architecture + Interiors had stabilized the structure decades ago but it was time to start over and the club turned to the architects again. The goal was to have the new building barely noticed as a replacement but to dramatically improve amenities, including new and expanded pro shops. The much beloved and iconic stairway, both outside and yet within the building, was still needed

to provide a much- used path from the golf course to the tennis courts. More outdoor covered space was needed for protection from sun and sudden summer rainstorms. At Onteora, a long tradition of covered porches means cocktails at sunset with a view. The tradition lives on in this new building. BR Photo cour tesy of Peter Vanderwar ke r

Members of the Onteora Club in the Catskill Mountains of New York State loved their golf and tennis house.

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Steve ChaMberLiN Steve Chamberlin is the president of Polar, a fine accessories company serving the private club, restaurant and hotel industries. He can be reached at (800) 858-3932 or via email at steve@the-polar.com.

case study

Handcrafted Menu Covers and Placemats Set the Stage for a Fine Dining Experience You have a first rate culinary team. Your dining room is breathtaking. Your wait staff is well trained and attentive.

Now may be a good time to look at design details that will add just the right finishing touch to your members’ dining experience.

Philadelphia-based leather goods manufacturer Polar, recently celebrated its Centennial Anniversary. With such a long history, the company has evolved over the years. In addition to serving the country club, hotel and restaurant markets, Polar has accomplished the impossible. They have produced product all three branches of the U. S. Government have agreed on.

The White House, The Supreme Court and The House of Representatives have all been outfitted with Polar acces-

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sories.Polar has reached consensus in the government by following the simple philosophy of producing high-quality products at a competitive price.

Polar products are designed for function as well as beauty. Domestic manufacturing allows Polar flexibility to offer menu covers and coordinating placemats in hundreds of different materials, colors and textures.

The company has been awarded BoardRoom magazine’s prestigious Excellence in Achievement Award in 2011, 2012, 2013, 2014 and 2015.

Polar’s indoor Club-padTM and outdoor Terrace-padTMplacemats can be finely detailed with your club logo. They dress up your place settings, protect your tables and make a bold statement about your appreciation for detail. BR

slimfold GRills | case study

When You’re Ready to Move The Feast Outdoors - Do it in Style! it’s time to be prepared for those special events that require cooking and dining in the great outdoors.

With a gentle breeze blowing and the aroma from the grill attracting a hungry crowd, any type of food - beef, chicken, fish or vegetables – seems to taste better when prepared and eaten outdoors. Enjoyed with a carefully selected wine or an ice cold drinkwhat could be better?

Outdoor cooking has never been easier, or smarter, than with the Slimfold Grill. When the assignment is dining alfresco, the elegant Slimfold Grill provides a great presentation for any out-door event. Twin independent grills on The Slimfold 6 offer a combined 1,134 square inches of cooking area. A one-piece design, with no extra parts to wear out or leave behind, and a quality construction gives the grill the enhanced durability demanded by chefs and club managers alike.

Folding down to seven and a half inches and weighing less than 100 lbs they are easy to transport, a snap to set up and have a quick, no-hassle clean-up. The re-circulating heat design of the Slimfold Grill’s firebox makes this grill unlike any you’ve ever used.

First, the heat is kept inside the grill, cooking evenly and efficiently with-out throwing heat and flames back toward the chef. Another benefit is increased fuel efficiency. You’ll get over 12 hours of high temperature cooking from twin 20 lbs propane tanks, so you save on gas and it’s kinder to the environment too! BR Cinders have been manufacturing foodservice equipment since 1984 serving professionals throughout the UK and northern Europe. In fact, wherever you have a mass of people out-doors you’ll probably find the Slimfold Grills. For more information visit www.foldinggrills.com

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heather ariaS De COrDOba

distinGuished ideas

Heather Arias de Cordoba is the associate editor of BoardRoom magazine.

If you have an distinguished idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.

It’s All About the Member Experience At Brookside Golf & Country Club “’how do we improve on the member experience?’ that was the question our club president posed one day,” explained Matt ruehling, general manager at brookside Golf & Country Club, a Distinguished Club in Columbus, Oh. “I felt it was a great way to get our staff involved in the decision-making process!” And so the member experience “Best Idea” contest at Brookside Golf & Country Club was born!

“We posted a memo for all employees and within hours ideas were funneling in,” said Ruehling. “The challenging part for the employees was this – their idea had to be implemented with minimal dollars allocated from the club,” so creativity was at an all time high.

“We set aside $1,000 for the top three contest ideas – $500 for first place, $300 for second place and $200 for third place. There was much more participation than expected.”

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It was clear to Ruehling that the employees were engaged in the process, as he was receiving ideas daily.

“One day an employee who was mowing the golf course rough tracked me down. He wanted to make sure that he handed me his ideas personally. We also had one of our employees do a 15 minute YouTube video of her ideas.

When an employee takes the time to film a 15 minute video, I know they were engaged.”

To Ruehling to positive side effect is the increased employee morale. “During this process we really broke down departmental barriers. I wanted the employees to think outside of their own departments, and many did,” he continued.

Once the winners were picked, the implementation of the ideas started. here are the tOp three iDeaS Daily information sheet: All employees are given a sheet daily, with a listing

of all club activities. Now a bag room employee can respond confidently when asked what is going on at the clubhouse or fitness center. (already implemented) Rewards card for member usage. (currently being implemented) Kitchen dinners: The newly implemented idea allows kitchen staff to host occasional dinners in the kitchen. The staff had noticed that the chef and membership interaction was minimal. This allows the members to experience and learn about the culinary arts occurring behind-the-scenes.

A couple of other favorite ideas including taking a member-to-work day and food truck night at the club. BR

heather ariaS De COrDOba Heather Arias de Cordoba is the associate editor of BoardRoom magazine.

If you have an distinguished idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.

distinGuished ideas

Reaching New Heights

The Drone Program at St. Andrews Country Club Once the subject of science fiction, drones are now a common sight and used for everything from surveying dangerous areas and watching wildlife to delivering products and filming live events.

St. Andrews Country Club, a Distinguished Club in Boca Raton, FL, recently initiated its drone program and so far, not even the sky’s the limit!

“In 2014, we hired a company to take drone video footage of our annual Color War Event,” explained Craig Martin, GM/COO at St. Andrews Country Club. “We were so impressed with the quality and presentation that we decided to purchase a drone of our own.”

The cost savings has been worth the investment.

“We paid $500 for about two hours of drone video footage of the Color War event. The total cost of the drone we purchased (the newest model from DJI, the Phantom III including the accessories) was less than $2,000,” Martin continued.

Since then, St. Andrews Country Club has used the drone to video the entire renovation of their golf course every week for 16 weeks and then share the footage to their members.

“Had we hired an outside firm, the cost would have been a minimum of $8,000 for that one project,” Martin explained. “We also use the drone to take high resolution and aerial photos any time and from any angle we want without having to pay a professional or aerial photographer, which used to cost us about $400 each time.”

By having their own drone, staff members can easily take advantage of beautiful weather to capture the perfect outdoor photo or send the drone up to take video footage of outdoor events.

“Our employees are so excited every time they have an occasion to use the drone. It gives them a terrific opportunity to be involved in the creative process, from capturing the video and editing it, to publishing it so we can share it with our members and prospective members,” Martin continued. “Feedback from our members is ‘WOW!’ they love to see the videos.”

“They get really creative and love adding in branding elements, music, voiceovers and more. We make sure to give them credit for the creation and acknowledge their contributions at every opportunity.” Just another great oppor-

tunity to build employee morale.

Club management ensured that each pilot/operator went through each of the DJI video tutorials, and once they felt comfortable with the process to start and stop the drone, they took it outside.

“Members that were nearby were instantly enthralled and came over to wave and watch as the drone went by. We found it’s like steering a remote-controlled toy car or boat,” Martin added.

“We love our drone and have had other area clubs over to see it in action to help them decide on purchasing one. (They did!)” BR FAA regulations have changed since St. Andrews Country Club purchased the drone. New rules require that all drones be registered with the FAA. Drones must remain in visual sight of the pilot/operator. They may not operate over any person(s) other than the pilot/operator.

They may not operate under a covered structure or inside a covered stationary vehicle.

They must yield right-of-way to other aircraft, and they can only be operated in daylight or civil twilight. A complete list of FAA guidelines can be found here: https://www.faa.gov/uas/ media/Part_107_Summary.pdf

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aDDiSON CraiG

memBeRship COMMITTEE

Addison Craig is the owner of ADDGOLF LLC, a golf instruction business. Addison works as a golf instructor at the Jim McLean Golf School at Trump National Doral, Miami, FL and works as a golf professional at The Bridge Golf Club at Bridgehampton, NY. He can be reached via email: addison.c.craig@gmail.com

Branding Your Way to Success Do you ever wonder if you’re doing everything possible to attract Millennials, 83 million of them, and outshine competitors? Do you sometimes wonder how important a brand really is?

I’m a Millennial and based on my experience, the answer is clear: In today’s fierce market, a distinctive brand is crucial.

I’ve been fortunate to work at a top club in Scotland and top clubs in the United States, and have visited others around the world. Each has its own unique brand built on exceptional moments of truth – those encounters where customers meet to exchange information and do business, and each provides up-close confirmation that outstanding brands help them stand out.

How much do you know about your Millennial members and guests? Millennials like to be part of a process to identify solutions to challenges. Involve them in identifying ways to create a brand that will attract Millennials. Think about hosting an event to introduce Millennials to golf, and along the way ask them what changes they would like to see at the club.

The fact is, Millennials represent a market that shouldn’t be ignored, because according to the National Golf Foundation, Millennials spend approximately $5 billion annually on golf.

Millennials live on social media, and that’s one of the best ways to interact with your Millennial audience. Does your club’s brand have a strong presence on social media?

Do you have a mobile friendly website? If you are looking

How much do you know about your Millennial members and guests?

Millennials like to be part of a process to identify solutions to challenges.

Involve them in identifying ways to create a brand that will attract Millennials.

Think about hosting an event to introduce Millennials to golf, and along the way ask them what changes they would like to see at the club.

And there’s one thing in common – all are trying to attract the next generation of golfers, yet some clubs still haven’t been deliberate about creating a brand that will attract the next generation. So, what is branding and why is it central to success?

The concept – branding – surfaced when marketers began realizing that just making the name of a product or group well known wasn’t enough. To be successful, the perception had to have more… what famed ad man David Ogilvy called “the intangible sum of a product’s attributes.”

By that, he meant creating all the specific attributes of a product or service in customers’ minds, what people think of when they hear the brand name, a perception that’s both factual and emotional.

How can you know if your brand creates the right perception? Ask yourself some questions and be brutally honest with your answers. For example, if you’re asked what your club is doing to promote golf as a fun, social activity, what would you say?

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for the best return on investment, 95.8 percent of social media marketers worldwide say Facebook produces the best ROI. But don’t forget to make sure your online brand is consistent and attracts the next generation of golfer!

As a golf professional, I believe in modeling the brand in every possible way. Basically, all your employees, from the golf professional staff to the food and beverage staff, should be clear about the image they reflect. They’re the ones on the front lines, interacting with members and guests of all ages every day. Remember, actions speak louder than words.

All this underlines the importance of being deliberate in creating and protecting the club brand. You want to stand out, and going the extra mile to build a stronger brand is a crucial to success, especially if you want to attract the next generation of club members – Millennials. BR

from Case Study | 12

In other cases, to offset the increasing size of the sale list clubs lowered the ratio of treasury membership sales to exiting membership sales, others with flexibility in the amount of refunds, cut pricing, but in most cases, even price cutting was not overtly effective in reducing the “sell list.” There is a long list of very prominent clubs that tried these strategies and tactics to little avail.

MarKet baSeD SOLutiONS

While there have been many incredibly creative tactics employed to resolve the sale list and refund issue, here are some of my favorites that lean more toward a long-range strategy.

If by-laws are prohibitive to your club remaining market competitive, go for the vote to make the change. There is not likely a single member in any club in the country that has not heard the horror stories of clubs in trouble because of equity restrictions. This is a tough process of education and polling, but it is the safest in the long term. Be sure and give flexibility in the process so that you don’t need to go back for a vote again.

Once you’ve cleared the way to do so, create a dollar amount that the club needs to have as a transfer fee, then let members set a price on what they want for their membership, with the least priced membership selling first, chronologically to the highest amount. Allow members to change this amount monthly.

If not already allowed, let the member transfer the membership with the sale of the home. As members age, to decrease attrition and reduce liability, begin to offer some amount of discount to monthly dues, by reducing their equity accordingly.

In all cases, the strategic response for equity related clubs should be to determine the liability of equity, begin to reduce the amount of equity refund offered and secure capitalization through a fair and equitable relationship of providing a relevant and vibrant club setting for a reasonable fee. Believe me, it works. BR from House Committee | 65

duel role many of us have, they may not realize just how much skill it takes to do both, especially when a huge tournament comes in.”

Bill Martz, LRM at Portage Country Club in Akron, Ohio says, “I do have more expanded job responsibilities than most LRMs. “My added roles include supervision of the men’s grill like most managers, but I also oversee the halfway house and beverage cart. And I help out in the dining rooms in the off season too.”

Luis Hermosillo, LRM at San Gabriel Country Club in San Gabriel, California for over three decades carries out duties never linked to locker room management. “I do all of the usual things you’d expect. However, I also manage the valet service and am in charge of clubhouse maintenance. Not something you’d usually associate with someone that runs the locker rooms. But, I take great pride in these responsibilities and our club appreciates everything I do.”

What locker room managers across the country want management at their facilities to realize is that their roles vary a lot and their skill set has to be deep to do their jobs well. BR JANUARY/FEBRUARY 2017 | BOARDROOM

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Steve GraveS

memBeRship COMMITTEE

Steve Graves is founder and president of Creative Golf Marketing. They were recognized as the 2016 BoardRoom “Membership Marketing Firm of the Year” and have won this prestigious award 15 out of the 18 years it has been awarded. Steve can be reached at (800) 526-8794 or via email steve@creativegolfmarketing.com

The Initiation Fee Conundrum It is easy to identify the fact that clubs need to provide added value, exemplary customer service and programming in order to stay relevant with what your members desire from their membership experience.

However, the harsh reality in many cases is that a stagnant membership forces clubs to start cutting services, amenities and programming in an effort to survive.

The most successful private clubs, in theory, are those with high initiation fees and low dues.

Under this scenario, clubs are at capacity, represented by an active and vibrant membership that supports the club through their participation and usage patterns. In a perfect world, this theory works. Unfortunately, we do not live in a perfect world.

One of the most apparent and visible consequences that occurred after 2008 was the selfimposed downward spike in initiation fees at clubs all across the country.

Historically, initiation fee levels at clubs were often a product of the laws of supply and demand in combination with ego and emotion, as club officials debated what the initiation fee

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“should be.” Or, commonly, used the mentality of, “that’s what I paid” at their respective club to emotionally justify that others should pay a similar tariff to join.

In today’s private club industry, however, initiation fees are a product of market forces.

Most clubs understand this is a dues driven industry and have decided to sacrifice initiation fees in order to generate the dues revenue needed to operate the club. While there is no denying this is a dues driven industry, slashing initiation fees to zero or near zero, as many clubs have done, has done great harm to their club’s brand, image and financial performance, and, in fact, the industry as a whole.

So, just how do you determine initiation fee levels? It really comes down to the old economic model of supply versus demand. Clubs that have a large number of openings should take a very cautious approach when contemplating an initiation fee increase, simply because they feel their club deserves to have a higher initiation fee.

During the “good times” initiation fees are driven upward. However, during the bad times, sometimes, corrections are warranted.

While some luxury brands are insulated to a degree from market downturns, a majority is not. The private club industry is no different. Weathering a financial downturn, and stagnant membership growth for more than a couple of years is very difficult for private clubs to overcome. Clubs are forced to assess, increase dues at rates far above the Consumer Price Index, attrition rates go up, while new member growth declines.

The easiest decision a club can make is to drastically reduce their initiation fee, with the expectation that prospective members will be lining up in droves to join your club. However, precipitous drops in initiation fees are not necessary and are seldom the true formula to quality new member growth.

To some clubs who have overreacted and significantly cut initiation fees during the down times, they felt it became a matter of survival. In fact it was actually the guarantee of their failure!

There is no question a “market correction” makes sense in some situations. As with anything, moderation is key as overreacting to the market and slashing initiation fees, before identifying various internal and external forces, can cause long-term repercussions.

More and more private clubs are seeing initiation fees being driven upward with positive membership growth, which is a great sign for the industry. While there is still much work to do, these positive signs are a welcome sight as the industry continues to recover from the economic downturn in 2008. BR

KathY O’NeaL Kathy O’Neal is the founder of Club, Resort, & Hospitality Consulting LLC based in Dallas, TX. She can be reached at (214) 850-0440 or Kathy.oneal821@yahoo.com.

memBeRship COMMITTEE

River Crest Combines the Rich Heritage With Enhancements for the Future the board of directors of river Crest Country Club realized that the proud heritage of their club – being the first private country club established in Fort Worth, texas, and the birth place of the Women’s texas Golf association in and of itself was not enough to attract the new, young, family-oriented prospective market.

Board members knew their challenge was to develop a master plan devoting capital dollars to specific facilities and programming that would help retain their maturing membership and appeal to future members. While the Fort Worth market is strong and growing, the competition is formidable.

Truly, these same challenges face most private clubs today.

Working with the board, the general manager, Eduardo Moreno, a graduate of The University of North Texas Hospitality management program, wanted to base their master plan on internal and external facts, combined with input from their members, market experts and prospective members.

As a first step in developing the plan, Moreno suggested hiring an independent researcher to provide an objective, professional evaluation and strategy recommendations for membership retention and ongoing growth.

the club while children have fun in their own specially designed space. Hours are extended on weekend evenings to accommodate later dining hours.

• The culinary offerings for the club had to be high quality, flexible for families and high-end entertaining with separate spaces for each, so they added a new patio dining area and repurposed spaces for family dining, happy hour lounging and upscale dining with a relaxed dress code (no jackets or ties required.)

• They also made improvements to programming. The tennis professionals became certified to teach pickleball and launched clinics, tournaments and interclub challenges. The flourishing summer junior golf program was extended into the fall. The chef began providing complimentary hors d’oeuvres for the weekly women’s Mahjong groups, making River Crest the popular place to play.

• A pricing strategy for junior members (under age 35) made membership more affordable initially and provided long-term payout options assuring retention and conversion to stockholder status. The board voted to give junior members the option to pay their stockholder conversion fee over a 10-year period. This provided a great retention

Having done the research and implementing the recommendations, River Crest Country Club surpassed its new member growth goals for 2016.

The board and Moreno believe that ongoing research, keeping them in touch with important market trends and member interests, is important to their continued success.

As hoped, the research confirmed the current and future strength of the market to support ongoing member growth.

With this new information, the board and Moreno drafted a master plan to keep the club on a healthy growth track: • They expanded the overall club offering by providing new social and recreational amenities to accommodate growing trends and member requests. In addition to renovating the golf course and golf pro shop, they added four courts for pickleball, a sport that is sweeping the country and attracting all ages, and a dedicated Mahjong card room (an ancient Chinese game that is also growing in popularity, especially in the Fort Worth market.)

• To attract and keep the family market, they added “Little Crest,” a day care service that allows parents to enjoy

strategy and sent the message that junior members are welcome and essential to the club.

Having done the research and implementing the recommendations, River Crest Country Club surpassed its new member growth goals for 2016. The board and Moreno believe that ongoing research, keeping them in touch with important market trends and member interests, is important to their continued success. Members share in the pride for their club and the role it plays in Fort Worth’s history, yet enjoy the new enhancements that position it as a private club thriving in today’s competitive market. BR JANUARY/FEBRUARY 2017 | BOARDROOM

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Michael crandal, cnG

insights

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 provides meaningful interim GM/COO services and employee development programs. He lives in the Buckhead area of Atlanta, GA. www.linkedin.com/in/michaelcrandal or (760) 464-6103.

The Difference Between Surviving and Thriving Staying Ahead of The Curve

Today’s fast paced, changing and diversified nature of membership expectations, drive home the need for club leaders not satisfied with just surviving, but instead, thriving during uncertainty. Just good enough no longer is.

Effective boards and top management cannot simply react to change. Instead, they proactively stay ahead of the curve.

One of our greatest strengths, or weaknesses, is that people over time can seemingly get used to just about anything. What may have started as a passing thought, a flimsy cobweb with constant repetition over the years will ultimately develop into habits that can serve as strong cables to either strengthen or shackle us.

Clubs that are overburdened with by-laws, club rules, or top-heavy committee structured governance models from yesteryear, find it difficult to proactively reflect new demographics. They feel shackled in making necessary decisions that may require breaking some of the old habits that have been practiced for years.

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Thriving clubs protect cherished traditions of longtime members, while making ongoing decisions conducive to newer members getting into the habit of joyfully spending time at the club.

Club dynamics have shifted dramatically from proudly pointing to a three-ring binder, second from the top shelf, fourth folder from the left and feeling comfort in knowing that they have in place a strategic plan! And, to prove it, there it is!

Fundamental strategies that just seemed to work for many years no longer do so. Some may need to be scrapped altogether.

Outdated by-laws, club rules, and committee structured governance models may need to be revisited. Oh, and about that 3-ring binder that is pointed to every so often …

The bottom line? Changing demographics and expectations are now a greater factor in how thriving clubs develop and execute long-range strategic planning, as well as even day to day operations.

In order to not simply survive, but to thrive, forward

thinking club leaders are expanding options from just ‘long range and specific’ to ‘short term and broader’.

Reviews, updates and tweaks are now, by necessity, somewhat ongoing.

In years past, even traditional successful clubs would update their strategic plan only every couple of years in efforts to keep in line with long-term goals. Today, club leaders that are proactively leaning into the curve, are reviewing and making ever so slight course modifications every three or four months.

That doesn’t mean the entire plan is thrown away at every turn! Puuullllleeeeease! The foundation of the plan always remains the lens through which decisions are viewed.

But it is necessary to examine the strategic direction by updating, revisiting and continually tweaking to ensure all the necessary factors are in place and still appropriate for reaching long term goals and values.

Planning now must be capable of revision on extremely short notice. Building flexibility and adaptability into club operations is now critical. And, yes, relevant by-laws, club rules, and governance models need to be up to speed heading into the curves.

Anticipate the gravitational forces of change and have the flexibility to adapt and pull a new generation of members into your club.

Thriving clubs in this new era know it’s not enough to just be aware of how fast things are moving around them.

Club policy makers (board) and operation decision makers (management) must anticipate the need for change and oftentimes flat-out initiate it.

Thriving clubs have the agility to shift focus and change direction on a dime, without hesitation. At the same time, they have the steadfast commitment to protect traditional club values.

Hey! Nobody said it was easy. That’s why you are needed in a position of leadership at your club - to not just survive, but to thrive. B R JANuAry/FeBruAry 2017 | BOARDROOM

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Steve Buck, general manager/COO, Shady Canyon Golf Club in Irvine; Jeremy Samson, general manager, Mesa Verde Country Club in Costa Mesa; David Voorhees, GM/COO, Big Canyon Country Club in Newport Beach; Steve Vlahos, general manager, Mission Viejo Country Club in Mission Viejo; and Joseph “J.J.” Wagner, CCM, CCe, general manager/COO, Santa Ana Country Club in Santa Ana

Orange Country, California – Pulse of the Industry What issues do the country top private clubs face today? How are they confronting these issues and what do their general managers see as potential solutions?

By Heather Arias de Cordoba

BiG canyon counTry cluB david voorhees, GM/coo descriBe your cluB’s success

We opened a new clubhouse in 2009 when the recession was upon us, and in the process assumed debt service in excess of $2 million a year. However, we have been fortunate to maintain a full membership with consistent wait lists for our primary membership categories.

With debt service funded from operations, and short-term depreciation fully funded for routine capital replacements, we can now allocate entrance fees and any profit from operations to a long-range capital reserve. The goal is to reduce our reliance on assessments and use the long-range capital reserves to fund significant expenditures identified in a recent capital replacement analysis such as a new golf course irrigation system. This is a strategic shift for our club and as a result the membership is now quite confident about our financial position and far less concerned about potential assessments.

The need to chart a new financial course arose out of our on-going strategic planning process and the amended fiscal 112

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policies through a joint effort between the finance and longrange planning committees, board of directors and staff leadership. Maintaining a full membership that believes the quality of services, facilities and programming to be a good value will continue to be key and doing so requires the active support of all committee and staff members.

GreaT cluB – GreaT GM

The culture with a foundation based on integrity and trust among members and their leadership representatives, staff and their leadership representatives, as well as between members and staff. Paraphrasing the Ritz-Carlton motto, “Ladies and gentlemen serving ladies and gentlemen” has well served clubs I’ve been fortunate enough to manage over the course of my career.

While leadership skills and personal attributes such as work ethic and creativity cannot be overstated, concerning a club’s general manager, executive presence is essential to effectively collaborate with members and staff to achieve club goals. The basis of which is once again integrity and trust.

challenGes and soluTions

The first is the escalating cost to recruit and retain exceptional staff members in terms of both compensation and benefits. Minimum wage increases are certainly a contributing factor. Second, managing legal exposure associated with personnel related claims is challenging in California and Orange County, in particular. The proper classification of exempt employees as well as independent contractors has created added pressures in this regard. And finally, remaining vigilant protecting our member’s right to privacy.

As a labor intensive industry with limited ability to rely on automation, short of reducing services we must simply manage our payroll better than ever. Outsourcing has merit for certain positions and yet this too must be effectively managed.

Labor and water related challenges are here to stay and we simply must deal with them the best we can. Some clubs are in a better position to absorb the increased cost than others.

I believe well informed leadership focused on continuing education is invaluable for any organization and our industry is fortune to have numerous resources at our disposal including quality content in trade publications such as BoardRoom magazine and truly outstanding associations in CMAA and NCA. For the good of their club and career I encourage managers to belong and become active in these groups.

Mesa verde counTry cluB JereMy saMson, GM descriBe your cluB’s success

All relationships require some investment, and arguably, none is more crucial in a club than the relationship between a general manager and board of directors. Greatness will come with differences in opinion and diverse ideas, but the foundation and trust needs to be established for ultimate success.

This trust and alignment has led to both personal and club success at Mesa Verde Country Club over the last few years. We have revamped our membership process and sponsorship strategies, which have led to a major influx of both social and golf members. We have fine tuned our food and beverage and event programming, and had successful renovations that included 60 bunkers, multiple tee complexes, and all our banquet/meeting spaces.

GreaT cluB – GreaT GM

I think tradition, an established vision, detailed amenities, a competitive and consistent golf course and wonderful food and gracious service makes a great club. That said, now more than ever, I believe great clubs need to build upon the past by recognizing the needs and wants of today’s changing membership.

Even the most traditional of clubs can maintain the level of pride and commitment in which they are accustomed while setting new heights by moving forward through in-

novative amenities and service. Our industry is not about isolating one amenity and ignoring the rest. Concentrating our efforts only on golf or tennis and or dining is a thing of the past…it is all encompassing, and a great club needs to become a lifestyle destination.

To develop an exceptional club lifestyle destination, a successful GM needs to understand the current market and create a vision for the future. Additionally, we must develop and sustain trusting relationships by listening and being present for both members and staff. A great GM creates a framework for people (members and staff) in different functional disciplines to work together effectively and progressively. challenGes and soluTions

Competitive advantage: Being able to manage a club in this part of the country is a blessing, but we all seem to share some challenges. All the clubs are trying to find their niche and compete for a modern, educated and critical consumer. In order to compete, most of the Orange County clubs have completed substantial enhancement projects in the last few years. We have created a five-year master plan for our clubhouse and golf course. The plan includes major golf course enhancements, kitchen expansion, flipping our bar and formal restaurant to create a larger and livelier social setting, and adding a health and wellness center. We will be voting on this plan in February 2017.

Attracting new members: Our club is becoming much younger and we have been able to attract a strong family based membership. Although we rely on members to sponsor their friends and colleagues, we have also developed new membership campaigns and operating procedures.

For example, we added a 60-day preview as part of our membership process, which is a win for the prospect and club. The process maintains our exclusivity, allows for proper candidate vetting, and then provides them access to our amenities before final approval, which makes the process more welcoming and less intimidating.

Workforce: Replenishing our workforce seems to be an ongoing challenge. The most difficult positions to fill have been in golf course maintenance. We have long tenured staff in this area, but replacing them or adding new staff has been tough.

To assist with this shortfall, we have outsourced certain areas that need regular maintenance, such as our lakes, nonplayable turf and slopes, as well as some of our larger maintenance projects. These partnerships have assisted us in keeping our team’s focus on the playable areas.

Mission vieJo counTry cluB sTeve vlahos, GM descriBe your cluB’s success

We have established a clearer separation between club operations and governance with our board of directors. The board now places a higher emphasis on governance and al➤ JANuAry/FeBruAry 2017 | BOARDROOM

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lows the GM and management team to make critical operational decisions, including an entire re-organization of the club’s expense structure. We also introduced some non-equity membership categories that we feel provide more opportunities and options for potential members and their busy lifestyles.

GreaT cluB – GreaT GM

There is an old saying, “It’s not the paint, it’s the people.”

Despite having a beautiful clubhouse and exceptional golf course, it really comes down to the people that occupy it. A membership that respects one another, values its co-workers and fosters the “Club First” attitude will always attract and keep the best people.

I solicited the opinions of those that work with me. I spoke with at least eight managers and hourly staff members. I have consolidated their responses into the top four characteristics.

1. Approachable and willingness to listen 2. Empowering them to do their jobs (no micromanaging) 3. The ability to teach, coach and foster professional development on an ongoing basis 4. Showing appreciation. challenGes and soluTions

The first is the rising costs including labor, water and electricity. The second is a locally saturated market (competition), and the third is less demand for the traditional country club lifestyle.

In terms of rising costs, there are some steps we can take now to help mitigate the rising costs of electricity, including solar energy. Water costs can be reduced by eliminating unnecessary areas of turf that do not come in to play, and we are currently in the process of turf reduction. As far as rising labor costs (California’s minimum wage increases) we can continue to look for more opportunities in our current expense structure and/or potentially raise dues accordingly to help offset the impact.

Additionally, increasing the productivity of the current staff could make way for requiring less staff in the future.

There could come a time that raising dues may be the only option, which is something we have not done in three years.

We are situated in a very compact country club market in Orange County. It is important that we continue to monitor what our competition is doing and strive to stay ahead of them. This means innovation through products, services and member programming.

Also, the continual pursuit of remaining relevant for those we currently serve and those we are pursuing. Lastly, some collaborative efforts involving our competitors may also be appropriate at times to ensure that we all remain healthy and active in our communities.

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Less demand for the traditional country club lifestyle has been a well-known fact to most of us in the country club business. Most clubs are moving towards a country club experience that involves all members of the household. Aquatics, fitness, tennis and a schedule full of family activities have become the norm. What many clubs need is the necessary funds to move in this direction and obtain these big-ticket items that enhance the experience. In our case, we committed a couple years ago to a capital fund that is driven through a small monthly membership contribution and supplemented with the club’s net income. Along with a strong strategic plan we are well on our way to accomplishing our goals.

Some of the challenges require short term on-going strategies and an understanding of where the business of golf is, and were its headed. A longer-term approach requires active participation with boards, committees and a well thought out and executed master and strategic plan.

sanTa ana counTry cluB Joseph “J.J.” WaGner, ccM, cce GM/coo descriBe your cluB’s success

Santa Ana Country Club has 400 equity Memberships. In 2013 we had 55 members on the “membership for sale list” waiting to leave the club. During that year we had a very proactive club president and board of directors and they moved from a fixed price to a market-driven floating price structure.

In just 8 months we generated 43 new regular equity members and 29 new members in other categories, including social and young associates. We continued to experience high member demand and in 2016 we had a waitlist to join.

The 2013 president and board of directors solicited its past presidents to bounce ideas off and generate initiatives to better the club. Together with the current and past leadership, many new and productive ideas came from that group.

GreaT cluB – GreaT GM

Generally speaking great clubs are created when the membership respects each other, has fun together and respects the leadership and management − the president, the board and the chief operating officer/general manager.

I believe great general managers should genuinely enjoy being around people. They should understand finance, the governance process and they should operate in the club’s best interest with the members in mind. They will become effective managers when they are well respected by members and employees. The more engaged and accessible to the membership and employees they are, the more success they will achieve. They should also be successful motivators and open to new ideas. challenGes and soluTions

Our first challenge is member patience. We recently completed a major $8 million golf course revitalization proj-

ect with a very aggressive rerouting of the entire track. The construction started in late February 2016 and we had our grand reopening in just eight months on November 4, 2016.

The course is like a baby – it’s delicate, it needs nurturing, caring and love. Many areas around the course are not mature. The growing season is several months away and people are impatient. I can understand their frustration, especially by not having a golf course for eight months and spending $8 million. Members want instant gratification with a hearty course with all of the kinks worked out. It’s just going to take more time and we will get there.

No other club that we are aware of in Orange County has completely closed its golf course for rerouting. However, most of the clubs in the area, within the last 20 years or so, have undergone some major golf course project and faced many similar and other challenges.

Activity to resolve any issues as the result of the golf course remodel: the board of directors has worked out a short-term and long-term plan and has begun regular communications to the membership. We expect many improvements by summer and fall. Realistically, I estimate that it will take three to 10 years to see it all come to fruition.

Our second challenge is our aging infrastructure. As one of the oldest clubs in the country (established 1901) and having the clubhouse rebuilt in 1969, it is quickly approaching 50 years old.

Over the years, we have updated and remodeled many interior rooms and even added a sports bar. However, under the façade the infrastructure – including a 48-yearold HVAC system, pipes, and kitchen – is aging and deteriorating. These functional shortcomings become costly to maintain and repair, and could potentially pose hazards.

The board is keenly aware that many of the systems are nearing the end of their useful life.

To safeguard unwanted equipment and facility failures, we have created an ad-hoc committee to address the issue, and to organize a master plan for the options of a major renovation or a new clubhouse. Business plans have been developed for both, and now we are interviewing club architects specializing in clubhouse construction. In the next year we will have options to take to the membership.

Other issues: one more subject matter that separates one club from the next - it is employees. They are the lifeblood of the members’ experiences. The daily interaction between employees and the members can’t be entirely controlled by the manager.

We must hire the best staff that can perform their job well, but who are also genuinely friendly, kind, have commonsense, and know how to take care of the members and guests no matter what the issue. Of course, guidelines, visions, expectations, etc. have to be established and with that the employees can take it from there to produce a happy and satisfied member.

shady canyon Golf cluB sTeve Buck GM/coo, ccM cce descriBe your cluB’s success

Shady Canyon Golf Club has experienced great success with its focus on maintaining a premier golf course, high quality service, the best possible food and beverage offerings and the keeping of all facilities at the highest level.

The success of the club hinges on collaborative governance by way of leading in the direction that meets members needs and expectations, including the recommendation of committees and which also encompasses management’s expertise.

GreaT cluB – GreaT GM

What makes a club great is the desire by its membership to simply enjoy the privilege of membership and all that it offers. I believe that single most important characteristic for a general manager is dedication. In an industry that has so many challenges daily, if you are not prepared to give it your all, you are not prepared. challenGes and soluTions

The challenge that currently has the attention of both management and the board of directors is keeping pace with member attrition. Attracting new members with new methods is crucial for the club’s long-term success.

The cost of labor, benefits and workers’ compensation insurance always becomes very important along with budget preparation time.

Ever-changing labor laws requires constant compliance and additional expense. These increasing costs are typically accounted for from one source – dues.

I would also add that being flexible with what is in and what is out is important. I often use the phrase, “It is not your father’s club anymore.” Clubs must be relevant to the current trends and change in generational shifts.

Again, the single most important solution to any club is its relevance to those they serve and can potentially serve.

Provide a better experience than your competition in all ways and you will likely have greater success.

I simply try to do it better than everyone else, take a few more calculated risks and not cut corners.

I have found that short-term solutions are always attainable, for example, a single great event/decision can keep everyone talking for a while. Long term planning is the key to long term success.

Plans change over time as were the conditions in which they were formed. I guess it comes down to the question: what is long-term these days? In my mind five years is about as long as you can plan for before there is a major shift in the club continuum. A solid plan with dedication will get you through three to five years until the next shift hits. BR JANuAry/FeBruAry 2017 | BOARDROOM

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rosie slocuM

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rosie Slocum, MCMP is director of membership, BallenIsles Country Club, Palm Beach Gardens Florida. She can be reached at (561) 627.3372 or via email: rslocum@ballenisles.com

Do You Have All Your Ducks In A Row Or Have Things Gone To The Birds?

“The greatest threat to our planet is the belief that someone else will save it” – robert swan Wildlife and environmental preservation through the Audubon Cooperative Sanctuaries Certification for existing golf courses is highly regarded in the club industry. However, only seven percent of golf courses in the United States have obtained certification.

It’s a program, which aims to educate communities of environmental importance and help prioritize, organize and maximize efforts.

Geese, ducks and birds, oh my! Golf courses across the United States house many species of wildlife, and it’s the responsibility of each course facility to investigate the natural nature surrounding them and develop a long-term strategic environmental plan to protect and preserve.

Audubon Certification is awarded to golf courses upon meeting standards in each area. It demonstrates leadership, commitment and high standards of environmental management. The emphasis is highlighted on wildlife and habitat management, chemical use reduction and safety, water conservation, water quality management, community outreach and education programming.

The process takes one to three years (no less than 6 months), which is dependent on how aggressive the golf course leadership team outlines its program. The agronomy team is responsible for development and implementation of an environmental management plan, documenting the results over a planned period of time, in accordance with the Audubon Cooperative Sanctuaries Program criteria for golf courses. A recertification plan is required every three years to maintain the designation.

GeT sTarTed!

The process begins with registering your property in the Audubon program. New member information provides a guide to environmental stewardship, certification handbook, registration art print and regional ecological community and native plant information.

The handbook has information necessary to evaluate the course environmental program and recommendations for improvement. The required materials include photographs, 116

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labeled golf course maps, pest management records, water quality tests results, wildlife inventory and sample education materials.

A resource advisory group formed of staff, golfers, local experts, watershed and environmental organizations and government representatives advises Audubon of anything that needs clarification.

Turning your program into a member experience creates a sense of pride and bragging rights. Invite members to participate in the preservation events education process required as part of the program process.

Document your events, include inviting expert state, local and college groups to your property to talk about what you’re doing and why. Plan interesting topics such as installation of bird houses, golf course wildlife educational field trips using areas of interest, bird watching, create program related video vignettes to share on member communications (social media, community TV channel, digital signage, newsletters and email blasts) and write stories for public or community news surrounding animal wildlife rescue or habitat improvements.

And of course, photography! There’s nothing more beautiful than looking at nature through photographs. Clubs with member photography groups are more than happy to share their community wildlife photos for display.

Many country clubs engage in philanthropy, which is an opportunity to get the community involved. Consider a wildlife foundation as the perfect way to include the membership with preservation efforts.

“A bird sitting in a tree is never afraid of the branch breaking because her trust is not in the branch but on her wings – so always believe in you.” www.quotestreasure.com It is everyone’s responsibility to protect wildlife and preserve the planet for future generations. Audubon Certification is the perfect way for country clubs to participate in the ongoing effort to be good to mother earth!

BallenIsles Country Club is proudly certified as an Audubon Cooperative Sanctuary property. BR

Bruce r. WilliaMs Bruce r. Williams, CGCS is international marketing manager for Grigg Bros./Brandt and a past president of GCSAA. He can be reached at: brucewms1@hotmail.com

gReen committee

Fleet Management Is Necessary one of the largest expenses in running a golf course is the capital purchase or lease of an equipment fleet. Beyond the original purchase, the cost of maintaining that fleet is one of the top four expenses beyond payroll, water and chemicals.

Managing the fleet is just as important as managing any golf course turf. While there is no expectation that owners and management will fully understand the role equipment plays, this will give you food for thought.

Providing adequate resources for the golf course superintendent to get their job done should be a large part of the role of ownership and management.

Equipment used to maintain a golf course is very specialized. A fleet for an 18-hole golf course can cost between $1.5 and $2 million when purchased new. So, you can see it’s a significant expense. Comparatively, a golf course irrigation system can easily cost up to $2 million.

be budgeted and approved by ownership or finance committees and boards.

With the cost of replacement as much as $150,000$200,000 per year, it’s worth having an outside look at what the facility’s needs. If the equipment lifespan is 10 years and the fleet cost is $1.5 million to $2 million, this gives us the price. lease or purchase

There are many options and some of that choice is based on club’s cash flow. Choices may be similar to what a club does for a golf car fleet. Other considerations include life expectancy.

Tractors last 20 years or longer. Utility vehicles normally last five years or less. Some clubs opt to lease equipment with higher turnover rates as compared to buying a tractor that will last decades.

The equipment is important but so is the person that maintains it and manages it.

The fleet is highly specialized and precision equipment often needing to be adjusted daily. Keeping a fleet operating can be as simple – if it breaks then fix it.

But it can also mean having a preventive maintenance program. cosT

Once while requesting a new fairway mower that cost $50,000 at the time, a board member said the cost was more than his wife’s Mercedes. ‘Yes,” I replied, “but we can’t mow fairways with your wife’s Mercedes!”

The golf course equipment has specialized engines, cutting units, safety systems, etc. all designed for optimal operation with a maximum quality of cut and a high level of efficiency. replaceMenT plan

Generally, the average life expectancy of equipment is 10 years. Life expectancy also is affected by whether the equipment is stored inside or left outside in the elements.

Develop a plan for equipment replacement and make the proper decisions on leasing and purchasing to keep your fleet in good condition. The golf course superintendent should work with the equipment technician to develop a list for each item and the year scheduled for replacement.

This will result in not only a list but a cost that will need to

Another consideration is that purchases are most likely capitalized and leases are part of an operational expense.

Technician or Mechanic

The equipment is important but so is the person that maintains it and manages it. The fleet is highly specialized and precision equipment often needing to be adjusted daily.

Keeping a fleet operating can be as simple – if it breaks then fix it. But it can also mean having a preventive maintenance program. The quality of a technician or a fleet manager also has a cost associated with it.

Your fleet is one of the biggest expenses and most important investment in your golf course. Buy smart, maintain it properly and have the right person on your team to get the job done.

Seek outside help to develop a solid plan for your facility.

There will always be a cost for upkeep, operation and repair of your equipment. Remember the adage: “You can pay now or pay later”, reflects how a fleet is managed. BR JANuAry/FeBruAry 2017 | BOARDROOM

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dave doherTy

gReen committee

Dave Doherty is President/CeO and founder of the International Sports Turf research Center, Inc. (ISTrC) and holds three patents regarding the testing of sand and soil based greens. He can be reached at (913) 706-6635 or via e-mail: daveistec@hotmail.com Web page: www.istrc.com

Do Greens Need to Be Aerified? in the spring of 1991 i was on a golf course with a very well known and respected think that those two things are as superintendent on the day he was aerifying the greens and i asked him why he complicated as I was led to believe back in the late 80s. aerified.

Solids are the sand granular and the As a member of a country club for many years I never understood why the supore space is the space between each perintendent would tear up the greens in the spring and the fall when they were granular or solid. Small pores hold looking so good. water and the larger pores hold air.

If the greens needed to be destroyed for the shear enjoyment of the general Roots cannot live in solids/granules manager and the superintendent why not destroy them in July or August when and they cannot live in water, which they were in bad shape anyway. brings us to the logical conclusion that If the GM and GCS wanted to play Russian roulette with their job security our root system can only exist in the twice a year that was their business but why did they have to do it with my air pores of our greens, tees and fairgreens? When I asked my friend, the well-known superintendent why he aeriways. fied, his response was, “I need to oxygenate the greens.” When I persisted and In 1995 ISTRC’s independent reasked how much oxygen he needed there was complete silence. search showed that the bent and This same lack of knowledge of why we do some of the things that we do is Bermuda grasses of that time needed still very common in our industry. It seems that we do them because it has alto have at least 15 percent of the total ways been done that way. greens mass to be air pores. Our later WOW, what a waste of resources. research showed that the air pores Over the years while studying with physical properties I have come to underneeded to be in the 18 to 20 percent stand that we are only dealing with two things – solids and pore space. I don’t range for the newer grasses, both bent and Bermuda.

The reason for additional air pores needed for the newer grasses is due to the fact that there is a much denser root system that comes with all of the newer grasses. USGA funded research at different universities later confirmed these original ISTRC numbers.

Think of air pores as “Rooms at the Inn.” If, for example, we have a million roots, we need a million rooms [air pores] for those roots to live in comfortably. If we have only 800,000 rooms [air pores] for the million roots than the million roots will not have enough oxygen to sustain themselves in a healthy manner and will be unable to provide golfers with the putting service they desires.

Based on the scientific results obtained from a study conducted by an White aReas = sand Black aReas = WateR poRes Blue aReas = aiR poRes independent soils lab we know that if 118

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our greens do not have enough air pores there will not be enough oxygen to support needs of our grass. Therefore, I am removing some of the old material and replacing it with new material that will increase the air pores and begin the process of providing more oxygen for our turf, enabling it to function in a more healthy state.

Green committees, owners, general managers and anyone else responsible for making decisions concerning greens is entitled to an answer based on science and not guess work.

How often do our greens need to be aerified and are the tine sizes and spacing the most effective they can be.

Are we wasting money by using the wrong techniques?

Do we need additional or different equipment? Are we filling our holes with the best material available? Do we need to fill the aerifying holes or should we leave them open? Should we sometimes fill the holes and sometimes leave them open?

How often do our greens need to be aerified and are the tine sizes and spacing the most effective they can be. Are we wasting money by using the wrong techniques? Do we need additional or different equipment?

Are we filling our holes with the best material available? Do we need to fill the aerifying holes or should we leave them open? Should we sometimes fill the holes and sometimes leave them open?

With the knowledge that we have available to us today, the superintendent can now answer questions and present the powers to be with the different options for each course. B R

golf insuRance By epic | case study

Insurance and Catastrophic Events The wildfires in california earlier this year were devastating to many people, homes and businesses. What role does insurance play during these catastrophic events?

Building and Personal Property • Update your Statement of Values to review your building and business personal property limits at today’s replacement cost.

• Review your limits for Building Ordinance or Law Coverage for any code or demolition expense.

• Are your limits for member’s property adequate? Including the storage of golf bags that are in your care custody or control?

• One coverage item that is extremely valuable and that can be overlooked or misunderstood is Business Income and Extra Expense. Many clubs may underestimate the limits needed.

• One of the key points to review and understand is the definition of Business Income. This includes not only loss of income but coverage for continuing expenses including payroll and extra expense to keep your business in operation.

• Finally, take the time to complete a Business Income worksheet to help determine the limits needed.

Our focus at EPIC Golf Insurance Services is to provide a proactive approach to the proper coverage and limits your club needs and help prepare you for the unforeseen events that may occur. BR

RHETT EVANS Rhett Evans is CEO of the Golf Course Superintendents Association of America.

GREEN COMMITTEE

The 2017 Golf Industry Show Offers Something For Everyone Paul is one of the brilliant, creative and The Golf Industry Show held annual in February is our major championship and one of the most visible ways we can provide value to our members and industry partners. innovative figures in this profession. He GCSAA’s first national conference in 1928, held only two years after forming as an association, attracted 350 attendees and 27 industry exhibitors. In 2016, more than 12,600 attended the event in San Diego.

It’s easy to see what a successful show means to this association in terms of revenue, but what’s even more important to us is the value it has provided to both members and industry partners, and how we can continue to provide that value in the future.

In Orlando this year, we will again introduce 115 educational opportunities and we expect to welcome more than 550 exhibitors who will cover nearly 250,000 square feet of space in the Orange County Convention Center.

We work hard on every detail of every event because we know how much this means students competing in the annual GCSAA Turf Bowl to the longtime industry supporters and members who have valued the show almost from the beginning.

Past president Bob Mitchell (1972) attended his first show in 1953 and will attend his 53rd national conference in 2017. He had missed only one show through 2000, when he retired after 25 years as executive director of golf and grounds at the Greenbrier Resort in West Virginia.

“I went to all of the seminars. I even won the tournament in 1954. But now I go to see old friends and see what today’s superintendents are doing,” said the 85-year-old Mitchell, and a 64-year member. “I’ve enjoyed all of them.”

And even first-time attendees quickly recognize the value of the event. Jeff Wilson, an 18-year GCSAA member and superintendent at Bandon Dunes Golf Course in Bandon, Ore., went to his first GIS in 2015, and said, “I am sorry I waited so long to attend.”

Our industry partners continue to say good things about the show as well.

“I’ve been coming to the show for 16 or 17 years in a row, and this ended up being my best show ever,” said Robert Thorn, general manager of Inject-OMeter.

The 2017 trade show floor will have returning favorites and new amenities, including a central location for Electric Avenue, where you can test drive new equipment, and expanded dining options so you can optimize your time on the floor. And we’ll deliver important information about creating best management practices (BMPs) for each of the 50 states that, once completed, will be of great assistance to your facility.

We also honor one of our own: superintendent Paul R. Latshaw, who will receive the Old Tom Morris Award, presented annually since 1983 to recognize a lifetime commitment to the game of golf.

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prepared golf courses for nine major championships and served as mentor to more than 100 individuals who have gone on to become golf course management professionals, including his son, Paul B. Latshaw, who is director of grounds operations at Nicklaus’ Muirfield Village Golf Club in Dublin, Ohio.

Don’t get left behind. Visit www.golfindustryshow.com to learn more about the upcoming Golf Industry Show.

I look forward to seeing you in Orlando. BR

from Executive Committee | 74

While a “benevolent dictator” governing some member-owned clubs sounds unappealing, it’s sometimes a hallmark characteristic of very successful clubs.

Most clubs have either a constitution and/or bylaws, which dictate things like governance, number of board members, officer positions, membership process and other procedures, and then a published set of rules that members are expected to comply with to enjoy the privileges of membership.

Unfortunately, many of these bylaws were enacted 50 or more years ago and would benefit from updating.

Since these are private clubs, some (not very many) still discriminate in selecting their membership, which is still generally legal in most cases.

The success or failure of private clubs can often hinge on the culture of the club. The most successful clubs (whether member or investor owned) have established a culture of ownership among the membership, who are often willing to pay to improve the club. The political environment at any club often dictates whether members assume the role of owners or customers.

If the board fosters a culture of inclusiveness, members are more likely to assume ownership and contribute.

If not, they are inclined to act like “customers” and object to fee increases, re-investment and many of the actions of the board. Often, this can be resolved by transparency and communication, and by action on the desires of the membership.

Yes, clubs are much like Washington. There are two “parties”, lots of debate, considerable inefficiencies and micromanagement. Change is rarely a popular thing in club boardrooms. Those that handle these issues successfully stand a far greater chance of survival than those that don’t. B R

HILDA ALLEN REAL ESTATE | CASE STUDY

Investments Made Easy Hilda W. Allen (HWA) is a leader of the industry in the investment of golf courses, country clubs, select leisure, and resort real estate.

While her transactions are concentrated in the Southeastern and midAtlantic regions of the United States, her expertise is sought-after nationwide.

With more than 1,000 golf course related properties sold over 25 years, Hilda is confident that 2017 is the time to invest, and she makes it easy for both buyers and sellers to do so effectively.

Hilda holds many leading industry awards and was just presented with her fifth consecutive “Excellence in Achievement” award in Real Estate Services by Boardroom Magazine for 2016. Additionally, she was the first woman ever to be inducted into the Georgia Auctioneers Association’s Hall of Fame.

An article written by Laira Martin, entitled “The Busiest Woman in Golf” and published in Golf Inc. Magazine’s January/February 2016 issue, highlighted Hilda’s 2015 business acumen, in 2016 Hilda was found to be the same mover and shaker. Hilda’s successful transactions included these two prominent Arnold Palmer signature courses: The Golf Club at North Hampton in Fernandina Beach, FL and Osage National Golf Resort in Lake Ozark, MO. Although Hilda has a large professional team as well as numerous affiliates, she is always a part of every transaction. Hilda W. Allen offers a number of services that makes it easy for you to invest in the future of golf. BR

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HENRY DELOZIER

GLOBAL PERSPECTIVES

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.

OODA Loop

The Answers Lie in the Process Private club boards struggle to be the agents of effective change. Their ineffectiveness is borne of motivated members drawn to a personal agenda or who lack a clear understanding of how private clubs should be governed.

Private club boards that want to improve their effectiveness should follow what’s known as the OODA Loop. Developed by military strategist and U.S. Air Force Colonel John Boyd, the OODA Loop refers to the decision cycle of observe, orient, decide, and act.

The military applications of the OODA Loop have expanded into business thinking and management doctrine where the intentional use of innovation and agility are rewarded.

How does a club leader or manager enable the board of directors to use the OODA Loop effectively? The answers lie within the process itself.

Observe: To be effective in governing the club, leaders must be observant of critical matters and not distracted by non-strategic issues. The primary responsibilities of every fiduciary board are to 1) protect and look after the assets of the corporation or entity; 2) develop and implement proper strategy, and 3) ensure adequate funding necessary to execute the strategy. Using this foundation, top-performing boards develop early-warning indicators that help them achieve their goals.

In doing so, the board thoroughly understands the authority and obligations afforded it through statutes and the club’s governing documents and by-laws. Secondly, top boards develop laser-sharp tracking methods – including cash-flow analyses and key performance indicators – to attend to financial responsibilities most efficiently. And third, top boards focus their energy on their club managers to implement the board’s strategy Orient: One often hears top rookie quarterbacks who survive the NFL’s trial-by-fire process referring to the game slowing down and “I am doing better at making my reads.” These young quarterbacks are describing their improved ability to orient to the rapidly changing field conditions. Private club boards experience the same learning process – some better than others.

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There are several steps that ensure improved results in the second – Orient – phase of the OODA Loop: • Execute a thorough and comprehensive board orientation program. See that every new board member is fully versed in the club’s by-laws and matters of club governance, strategic plans, financial reports (balance sheets and income statements) and tactical or business plans.

• Educate the board in the effective leadership of the club. Board members must understand current market conditions, measurements of current operational characteristics, planned capital requirements and communications plans.

• Instruct board members in matters where their involvement is NOT appropriate, such as staff management, supervision or instruction, member or employee discipline and procurement of goods and services.

Boards maximize their effectiveness when they balance a deep-seated understanding of their role and authority with the operational personality of the club. The hodgepodge of rules, regulations, operational needs and members’ personal agendas is easier to interpret when the board functions with a shared basis of understanding.

Decide: Private club boards are required to make many difficult decisions. They become even more complex when board members are ill-prepared or act on personal agendas rooted in a self-serving or limited understanding of the club.

Just as the most accomplished fighter pilots would never address an enemy threat without every available shred of information and intelligence, board members need to be well informed to govern with authority and to govern effectively. Fred Laughlin, an associate at Global Golf Advisors and an expert in non-profit governance, teaches club board members that they should “deliberate as many and speak as one.”

Decision-making in private clubs is often influenced by personal agenda and emotion. Leadership excellence in clubs with histories of effective leadership is underpinned with facts, data-driven decision-making and understanding of current market conditions. That allows top club boards decide on strategy, finance and matters

of governance in deliberate and highly disciplined ways.

Act: Armed with knowledge and understanding, private club boards can act ahead of emerging trends and worthy competitors. Proactive leadership is a trademark of top-performing clubs, and bringing action to the OODA Loop in a private club requires that club leaders exhibit four important characteristics: • Leadership that is dependable, trustworthy and resolute in executing what has been decided • Governance that is transparent, consistent and deliberate • Focus on revenue growth more than cost-cutting • Brand management that is alert to market differentiation.

Action taken within the context of the OODA Loop requires ongoing selfevaluation. Club boards wishing to improve performance results should implement regular self-evaluations and annual 360-degree performance evaluations of the entire board. Their evaluations should include the following questions: • Was the board effective in its deliberations at the meeting?

• Were all key agenda items addressed fully?

• Were all board members fully engaged in the discussion?

• Were all board members prepared, having reviewed all of the information given to them prior to the meeting?

• Did each board member do their part fully?

Using the OODA Loop – observing, orienting, deciding and acting – helps club boards increase effectiveness through systematic and interdependent processes. In the long run, these skills will help dedicated club leaders fulfill their obligations and lead their clubs to greater success. B R

REID CONSULTING SERVICES | CASE STUDY

3 Roadblocks to F&B Success Private club F&B is evolving and re-launching the brand identity of many clubs, and contributing to member satisfaction now more than ever.

A competitive labor market, dining trends, and changing demographics are altering the landscape of F&B within a private club. A professional F&B organizer understands the service nuances of a private club while managing the key performance indicators.

1. Where do I start? Something needs to change but finding the right starting point is not easy. Objectivity and expertise of this complex department is key to achieving the results you desire. A seasoned expert perspective can get you started immediately.

2. I don’t have the time. Time is one of a manager’s most valuable resources. A professional F&B organizer can implement an action plan immediately, thus providing faster results.

3. We need more resources, updated facilities, staff, training, etc. A F&B organizer who is an expert in evaluating the operation, delivering results, and training is the answer. RCS partners with you to manage and organize your operation.

Having a systematic plan will immediately get you on the right track toward balancing and achieving your financial and member satisfaction goals. We keep your team focused, motivated, and moving forward together. Contact RCS today to see how we can help you spend your time and resources where it really matters. BR

CHRIS BOETTCHER

CLUB SERVICE

Christopher boettcher, proudly a CCM and CCE, 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.

To Show or Not to Show

The CMAA Show and Conference 2017 Do you send your professional to get more educated or do you think you can’t afford it? That really IS the question for some clubs.

There may be a need to send them, or there should be a want for more education. The key is there has there must be a supportive board of directors who understands and gets the need for continuing education.

I mean really, we need education for a multifaceted position as GM/COO/head-busboy. We are administrative professionals, with a expertise in culinary and high-end service; golf course consultants and agronomy students; golf equipment know-it-all, required to know the sport and the teaching of the game, as well as how it’s played and all of its rules; retail experts and learned in retail cost analysis; tennis professional consultants with court maintenance skills; parking and valet service experts and an aquatics en-

gineer and life/safety teacher, coupled with being a gardens’ designer and social butterfly.

And you better know something about plumbing, electrical, carpentry and mechanical design. And speaking of design, you should have a good eye for art and decor as well as a sharp instinct for cutting edge food and beverage displays and techniques.

Plus, you better know your Rules of Roberts, bylaw and employment law, as well as property law and insurances, and auditors and can run committees, facilitate large group discussions, be highly skilled in leadership and able to lead and guide a board of members, who are extremely successful in high end companies that make a LOT of money.

And speaking of money, you better be able to dissect and dive into budget drafts, financial reports and proactive monetary practices like forecasts and report writing that is

C M A A M e m b e r P h i l i p C . Koretski, GM/COO, The Misquamicut Club, Watch Hill, RI speaking at the 2015 CMAA World Conference, Manager Educa t i o n Day. P h otos by b re n t C l i n e, C l ine Design. Copyright CMAA .

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concise and easily understood by CEOs, ex-CEOs and other highly successful people.

In addition to all of this, you better be good with kids, have a charming approach to the club’s women contingencies and have a great way of interacting with members – not to mention staff – that makes them comfortable enough to approach you with problems like burnt toast to the poor grandfather, also a member who’s had an incident with another member and does not understand what happened because he’s 99.

Then, speaking of staff, you must be available for all 148 of them, able to listen well and be empathetic while remaining a good steward of the club business. And finally, being a club manager really means you have to be a nice guy, most of the time.

So, do you make “the spend” to send them to learn more about the above?

The CMAA Show and the more than five or six dozen education programs is definitely worth the price and the effort. The bummer? sometimes it just does not work for your club.

I have to stay home this year because of some major projects underway. Luckily, if that happens to your professional, there are usually a wealth of local CMAA education that can supplement their knowing.

Whether you decided to send your manager for more education or not, it is crucial to the club, and to their growth that they keep learning. It’s really a shame if you don’t see the value here. It’s a great experience from the networking standpoint alone. And the education is really top notch.

The conference experience always reminds me of a great thought – often shared in our industry – between two board members - one, maybe a little wiser than the other. It goes something like, “Why would I spend so much money on our manager’s education and he just leaves?” The other board member exclaims “Well, what if we don’t and he stays?” Lead ON! B R

SIGNERA | CASE STUDY

Belle Haven Country Club

Belle Haven Country Club in Alexandia, Virginia has approximately 1000 members.

“We wanted to do away with paper signage to create a clean, branded look,” said Sandra Sawin, director of membership & communications. “Signera offered a great product…there was also customization available to fit the décor of our traditional, Federal-style clubhouse.”

Christopher Bilko, communications manager said, “They loved it! I always see members stopping at the signs to look and see what is coming up on a given day.

It gives us much more variety. We have unlimited space to advertise events, and we do not have to worry about outdated event flyers. It really helps on our end.”

Sawin feels that when used in conjunction with all of the other communications tools, digital signage is a very effective method of reaching their members. BR

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HEATHER ARIAS DE CORDOBA

INNOVATIVE IDEAS

Heather Arias de Cordoba is the associate editor of boardRoom magazine.

If you have an innovative idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.

A Pop-Up Event Like No Other

Chevy Chase Club Hosts a Dîner en Blanc Imagine, white tables and white linens…white flowers, balloons and white tents. Imagine if every guest arrived at your event, dressed to impress and dressed in white. Spectacular! Spectacular! And that’s Dîner en Blanc.

On a warm September day recently, members of the Chevy Chase Club in Chevy Chase, MD were invited to a pop-up event at the club. In traditional Dîner en Blanc style, the location remained a secret until all guests had arrived. Gathering at the golf shop, a chauffeur arrived and then drove everyone to the pop-up location.

“A cozy location on the golf course with our members surrounded by aged pine trees set against a beautiful sunset became the setting for the dinner,” explained Luke O’Boyle, GM/COO at Chevy Chase Club.

HISTORY OF DÎNER EN BLANC

The first official Dîner en blanc took place in 1988 in the Parc de bagatelle in the bois de boulonge. Françoi Pasquier started it by inviting a few friends to join him for dinner after his trip abroad. To find each other in the park, they decided to wear all white. The dinner was such a success, they decided the next year, “bring a meal, and bring a new friend.” For more information, please visit www.dinerenblanc.com

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Unlike the traditional Dîner en Blanc event, where guests are required to bring in their own tables, chairs, food, and table top items, the club provided the setting - including the food and beverage - although picnic baskets and wine were still carried in because members wanted to feel part of the ritual.

“The concept was extremely well received, and fun for all” added O’Boyle. “Our members were thrilled with the concept of a pop-up venue and pleased with how flawlessly the dinner was executed by our chef and his team.”

O’Boyle emphasized that proper planning and organization are the keys to success, and that members are already looking forward to next year’s event.

“The biggest question we have now is, where will next year’s event be held,” continued O’Boyle. BR

HEATHER ARIAS DE CORDOBA Heather Arias de Cordoba is the associate editor of BoardRoom magazine.

If you have an innovative idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.

INNOVATIVE IDEAS

Swig List at Cherokee Town and Country Club

A Unique by the Glass Offering

“We started trying new wines and This program at Cherokee Town and Country Club, in Atlanta GA is really worth a unique varietals,” Warren added. “Our swig or two.

SWIG list isn’t in place to move old inCherokee Town and Country Club is recognized as one of America’s premier ventory any longer, now it gives us an private clubs, and the uniqueness of the two locations (town and country opportunity to introduce new and fun club) means the club offers its members two different experiences for one wines separately from our tradtional membership. wine by the glass list. It’s definitely The country club located near the Chattahoochee River in Sandy Springs is been a win-win for us with increased golf centric. They hold their own events, and although smaller in comparison member satisfaction.” BR to the town club, they’re important to the country club members.

While reviewing their inventory, management realized they had some aging wine in the cellar that they needed to move. And so the SWIG (Specialty Wines In the Glass) list idea was born!

“Because of the nature of the casual, golf environment, the country club members prefer to order single drinks or wine by glass,” explained Kimberly Clark Warren, country club manager at Cherokee Town and Country Club.

“We had some very nice wines aging in our wine cellar but had not been successful in selling the full bottles to the members. We didn’t want to lose the inventory, so Mike Wochek, our beverage manager, reformatted the menu to capitalize on the opportunity to focus on these incredible wines – by the glass.

“Individually we would promote three red and three whites from our cellar and offer them to our members by the glass, on our SWIG List. It gave them an excellent opportunity to try some really different and delicious wines, while allowing us to move through our unused inventory.”

The SWIG list has been such as successful endeavor that even after the inventory was consumed, management decided to keep the program going.

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EXECUTIVE COMMITTEE

Questions With CMAA’s Advocacy Chairman, Brian The Club Managers Association of America (CMAA) is addressing advocacy for club management professionals as a key competency in its strategic plan. Brian Kroh, chair of the advocacy committee, leads this effort in concert with CMAA’s team of professionals.

How does CMAA define advocacy? Advocacy is more than what you would traditionally think of in terms of encouraging CMAA members to become involved with legislative and regulatory matters.

Our committee sees a much broader view of advocacy, and views CMAA’s role to be significant in preparing our managers to be more effective advocates for themselves in their roles as club management professionals within their own clubs. Our committee’s mission is to develop new strategies, resources and education to prepare CMAA members to influence outcomes in club boardrooms and the halls of government.

We are working to: 1. Develop club-specific research and distribute to club managers and boards, and schedule routine distribution of advocacy information to club boards.

2. Train club managers on how to impact government and public affairs.

3. Arm club managers with the skills to advocate for themselves through situational learning and professional development focusing on interpersonal relations, communications – oral and written, debate, body language, leadership, confidence and professionalism.

What are CMAA’s new offerings in this area?

In April 2016, CMAA announced the creation of regional, one-day summits designed to bring together a club’s general manager/CEO and the club president or a board member for cooperative education on club leadership and governance. The Governance/Leadership Summits provide a structured environment to engage some of the best ideas and practices evident in clubs from around the country.

Further events are planned for 2017.

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We began our education and training for club managers with a session focusing on effective advocacy featuring government affairs specialists from CMAA, the Golf Course Superintendents Association (GCSAA) and the National Club Association at the 2016 Leadership/Legislative Conference recently in Seattle, WA. Addition education will be presented at the 90th World Conference on Club Management and Club Business Expo in Orlando, FL, February 7-11, 2017.

Tell us about Clubindustryvotes.org.

In June, CMAA relaunched its Grassroots Advocacy website, Clubindustryvotes.org. It is a one-stop resource for government advocacy for both the federal and state level.

Through the site, all members can easily access federal legislation and regulations; state information; federal and state Legislator information; action alerts on CMAAtracked issues; and non-partisan election and voter registration information. Further, chapter managing directors and legislative chairmen now have the opportunity to collaborate with CMAA on state-related action alerts (contact forms) and more.

How does this type of advocacy translate into success for club management professionals in the boardroom and the club?

The same skills - interpersonal relations, communications – oral and written, debate, body language, leadership, confidence and professionalism – are necessary for success in the boardroom. They are needed to establish yourself as a leader for your team. Think about your own contract negotiations, selling a club renovation, or any of the multitudes of tasks that you are asked to do on a daily basis. BR Brian Kroh, CCM is general manager of John’s Island Club in Vero Beach, FL.

from Publisher’s Perspectives | 10

“Recently, many clubs have attempted to revise categories of membership, create new categories, change redemption rights and make other changes to equity members’ rights by board action or simply by instituting new ‘policies.

“Doing so without following the procedural requirements frequently leads to disputes with members that could otherwise be avoided,” she added.

“Considering all the legal mistakes clubs can make, three come to mind as being completely avoidable, but possibly devastating,” offered Robyn Stowell, a partner in the Scottsdale, AZ-based law firm of Sherman & Howard.

“First, some clubs do not follow their documents or (for member-owned clubs) applicable state statutes. Secondly, they do not consult with the proper resources when making decisions, which is important for the board to be covered by the ‘business judgment rule’, which essentially protects directors when they make a wrong decision, but with the best available information.

“Third, they (board members) do not understand and live up to the directors’ fiduciary duties, which require among other things appropriate information and diligence in making decisions for the club,” Stowell opined.

“Directors are often surprised to know that they can be liable personally for their actions and/or for decisions that the board makes. For example, directors’ and officers’ liability generally covers directors when they are acting in their role as a director.

“Directors have been deemed to be acting outside the role of director when they violate their club governing documents, when they act individually rather than as a board, or when they are acting as an individual member,” Stowell stressed.

“When boards and/or directors violate their fiduciary duty or their club’s governing documents, resulting litigation can be expensive and embarrassing for the club,” she maintained.

It’s a requirement that board members understand their fiduciary duties and responsibilities, that they accept the responsibility to act with the duties of good faith, due care and loyalty, and it’s at a board member’s peril to not do so.

“Reviewing and knowing about contracts, in my opinion, is one mistakes,” said Gordon Welch, a former club manager and now president of the Association of Private Club Directors.

“Boards generally do not review contracts and sometimes do not even know they have one in place. I, for exSEE PUBLISHER’S PERSPECTIVE | 130

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ample, was hired at a club and had a contract with the previous GM and the board did not know it. The board fired him and he sued and won.

“Someone on the board should be aware of the contracts and maybe this should be a part of an annual review, “Welch added.

“Secondly is the fiduciary responsibility of understanding the financials. Most boards are truly not aware.

I read recently of a club going bankrupt and it was an oversight problem. The club is a real business and should be run as one.

“All are human errors, and they often happen when things are going well in the club and the board becomes lackadaisical,” he commented.

What are the implication of these ‘legal’ mistakes?

“We live in a litigious society and the number of clubs becoming the target of legal action is on the rise, “ offered Tanzer. “Implications for a board, club’s management and members range from a mere inconvenience or nuisance, to complete ruination of the club.

“Those familiar with the Spokane Club case know that a handful of disgruntled members’ discrimination law suit against the club ultimately resulted in a judgement against the club, hundreds of thousands of dollars in legal fees and costs, bankruptcy and then sale of the club facilities to a third party and the termination of the private club.

“The boards should participate in ‘club governance’ programs and presentations as governing a club is complex business, a ‘city’ with many new issues a corporate board does not have,” Addison explained.

Kapoor agrees. “Clubs must update their governing documents, and clearly articulate the roles of the board, the officers, the committees and management. They need to have checks and balances in place to minimize human mistakes. Board and volunteer orientations must focus on the do’s and don’ts.”

Yes, the board and volunteer orientations are a must in today’s private club world.

“Each board term should begin with a rigorous board orientation on legal issues given by someone who truly understands the legal issues specifically. Each director should start their term understanding their legal duties and responsibilities, what they can and must do (and NOT do), and the actions or inactions that could lead to personal liability,” explained attorney Stowell.

“It may sound overly simplistic, but the best way to overcome governance legal issues is to get proper advice from the outset from a legal professional well-versed in club law. So often clubs will rely on the legal experience of board members. While the legal experience of a board member may be very valuable, if the experience is not within the realm of club law, certain issues and risks may not be fully appreciated or vetted,” added Tanzer.

We can borrow the Las Vegas line here: “What happens in the boardroom must stay in the boardroom.” When board members accept their position, they also accept the responsibility to act with good faith, due care and loyalty.

And with duty of loyalty board members accept the implied duty of confidentiality.

Once a board settles an issue in the board room, it’s a fundamental requirement that the board presents a united front.

“While most governance documents provide for indemnification for board members, the indemnification is generally not without limits. For example, if an action or inaction was taken in bad faith by a board or a particular board member, the indemnification may not be available,” Tanzer explained.

“Costly litigation, public disputes between board Members, loss and potentially freezing membership sales due to public dispute, use of disputes by competing clubs, individual liability to board members,” are often the result, added Randy Addison.

So, to overcome these issues, “boards need to periodically review and revise the governing document, bylaws and membership agreements to reflect changes in the law, the club’s operations and the marketplace.

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“Club operations and governance is an ever-changing business and the wrong actions taken by a board can be devastating to the club, its members and individual members on the board,” injected Addison. “Consult with someone with long term club experience.”

PUBLISHER’S FINAL THOUGHTS

Many of the specific legal mistakes have been raised by these contributors well versed in the private club industry, but there are a few other specifics, I raise that can also have ugly implications.

Board oversight: It’s crucial that boards provide oversight to the happenings in a private club. Often tasks are delegated to board members, committees, staff or perhaps

people hired for specific tasks. However, it’s a requirement of the board to make sure it provides sufficient oversight, meaning, the board must ensure that board policies and procedures are being followed.

This can include a review of financial statements and the implementation of various government policies, including, for example, conflict of interest, senior management compensation etc.

Preventing the club or the board members from lawsuits is the responsibility of the management and the past board members. Club management and previous board members must make sure the newly elected board members understand and commit to their duties…their roles and responsibilities.

BOARD ORIENTATION

A proper board orientation is extremely important. Not just to understand the financial landscape of the club, but also an understanding of what a non-profit private club is. New board members must understand the seriousness of their duties when they agree to serve on the board. While a volunteer brings in a depth of knowledge of how the organization work, they really may not understand what a board does.

I recommend the following. An initial meeting with each committee chair, general manager and past president, and a one-on-one with the general manager and past president is the start of the orientation. Each of these volunteers must be informed on the organization, history, mission and bylaws.

The next step is training, and I recommend a third-party day orientation or online non-profit club specific board training. Boardroom magazine’s ‘BoardRoom Institute’ is a great option.

This training should consist of an outline of the roles and responsibilities and an understanding of the duties of each

committee chair, which of course varies with of the club’s committees. Also, an understanding of their fiduciary responsibly as a board members is a significant requirement.

They should also understand the private club industry, their specific kind of club, and whether it is a for-profit operation or a 501(c) (7) non-profit equity club.

Providing oversight, ensuring the board establish policy while allowing the club’s management to handle the dayto-day operations (in other words, no micromanaging staff), and understanding and having an awareness of laws governing tax exempt clubs is vitally important for incoming board members.

AIRING DISAGREEMENTS

We can borrow the Las Vegas line here: “What happens in the boardroom must stay in the boardroom.” When board members accept their position, they also accept the responsibility to act with good faith, due care and loyalty.

And with duty of loyalty board members accept the implied duty of confidentiality. Once a board settles an issue in the board room, it’s a fundamental requirement that the board presents a united front.

Airing of disagreements outside the boardroom or any confidential information about the members goes against the grain of the duty of loyalty.

Board members must hold each one accountable for their behavior, lives by the club’s code of ethics, avoid conflicts of interest, and seek to manage a club’s portfolio appropriately and to the benefit of the club’s members.

Board members are stewards of the club’s assets and the number one priority of the board must be to protect the club’s assets.

At least, that’s the way I see it. BR John G. Fornaro, publisher JAnuARy/FEbRuARy 2017 | BOARDROOM

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Food Service Equipment & Design

Pastry Shop Contact Jose Poleo VP Main Kitchen for your free consultation!

Banquet D.E.I. FOOD SERVICE Display Kitchen Bars EQUIPMENT & DESIGN Buffet US TOLL FREE The Turn (Snack Bar) 800.779.3028 Ventilation JPOLEO@DEIKITCHEN.COM T/ 954.920.9499 Refrigeration F/ 954.920.9802 Installation

Du Val International, Inc. specializes in the recruitment and placement of CHEFS only. Established in 1972, DVI works with the finest chefs worldwide and has placed many master chefs.

Maxine Du Val, President/CEO

334.298.5550 M A X I N E @ M A R C U S D U VA L . C O M C E L L : 706.662.4355 W W W . D U VA L I N T E R N AT I O N A L . C O M

POOL, BEACH AND PATIO FURNITURE

Steve Berlin (954) 614-1505 xhibtz1@xhibtz.com www.xhibtz.com

APCD ASSOCIATE MEMBERS & SPONSORS Attorneys Addison Law Firm 14901 Quorum Drive, Ste. 650 Dallas, TX 75254 Tel: (972) 960-8677 Fax: (972) 960-7719 Website: www.addisonlaw.com Email: clublaw@addisonlaw.com Contact: Randolph Addison, president

Club Advisory Services Club Consultants LLC 5121 Castello Drive, Suite 1 Naples, FL 34103 Tel: (239) 643-7800 Fax: (239) 643-7803 Website: www.clubconsultants.com Contact: Bill Wernersback, sr. mng. dir.

Club Neckties, Scarves, Emblems Stratton-Crooke Enterprises Inc. P. O. Box 215-H Scarsdale, NY 10583 Tel: (800) 732-9719 Fax: (914) 725-5196 Website: www.strattoncrooke.com Email: StrattonCrooke@aol.com Contact: Nancy & Jim Crooke

Club Services HFTP 11709 Boulder Lane, STE 110 Austin, TX 78726-1832 Tel: (512) 249-5333 Fax: (512) 249-1533 Website: www.hftp.org Email: Laura.Huffman@hftp.org Contact: Laura Huffman

Clubhouse Design Chambers 1800 Washington Blvd., Suite 111 Baltimore, MD 21230 Tel: (410) 727-4535 Fax: (410) 727-6982 Website: www.chambersusa.com Email: jsnellinger@chambersusa.com Contact: John R. Snellinger Peacock + Lewis Architects 1295 US Highway One North Palm Beach, FL 33408 Tel: (561) 626-9704 Fax: (561) 626-9719 Website: www.peacocklewis.com Email: Brian@peacocklewis.com Contact: Brian Idle

Clubhouse Architect Judd Brown Designs 700 School Street Pawtucket, RI (401) 721-0977 Contact: Peter Cafaro H. Anne Blakely Sciarrone Architecture P.O. Box 357 Decatur, GA 30031 (678) 632-2663 Contact: Anne Sciarrone

Clubhouse Furniture Eustis Chair P.O. Box 842 Ashburnham, MA 01430 Tel: (978) 827-3103 Fax: (978) 827-3040 Web site: www.eustischair.com E-Mail: fred@eustischair.com Contact: Fred Eustis

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Gasser Chairs 4136 Logan Way Youngstown, OH 44505 Tel: (330) 759-2234 Fax: (330) 759-9844 Web site: www.gasserchair.com Email: ksmith@gasserchair.com Contact: Kevin Smith

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

Outdoor Furniture Bambrella 6464 East Rogers Circle Boca Raton, FL 33487 Tel: (561) 288-8655 Website: www.Bambrella.com E-Mail: info@Bambrella.com

Consulting Clubwise Consulting 3507 Dunlin Shore Court Norcross, GA 30092 (770) 248-1047 Contact: Jerry McCoy Email: Cmaamcm@msn.com Denehy Club Thinking Partners 501 Kings Highway East 06825 (203) 319 8228 Website: www.denehyctp.com Contact: Dan Denehy McMahon Group 670 Mason Ridge Center Drive , Suite 220 St. Louis, MO 63141 Tel: (800) 365-2498 Website: www.mcmahongroup.com E-Mail: info@mcmahongroup.com

Course Maintenance International Golf Maintenance, Inc. (IGM) 8390 Champions Gate Blvd #200 Champions Gate, FL 33896 Tel: (800) 413-5500 FAX: (407)589-7223 Website: www.igminc.net Email: gregp@igminc.net Contact: Greg A. Plotner CGCS, EVP

Executive Search Firm Kopplin Kuebler & Wallace Southwest Office 7349 Via Paseo Del Sur, Ste. 202 Scottsdale, AZ 85258 Tel: (480) 443-9102 Fax: (480) 443-9642 Website: www.kkandw.com Email: dick@kkandw.com Contact: Dick Kopplin, partner Kopplin Kuebler & Wallace East Coast Office 132 Tulip Tree Court Jupiter, FL 33458 Tel/Fax: (561) 747-5213 Cell: (407) 864-6798 Website: www.kkandw.com Email: kurt@kkandw.com Contact: Kurt Kubler, CCM, partner Kopplin Kuebler & Wallace Cleveland Office 20373 Scott Drive Cleveland, OH 44149 Tel/Fax: (440) 783-1268 Cell: (412) 670-2021 Website: www.kkandw.com Email: tom@kkandw.com Contact: Tom B. Wallace III, CCM, partner

Food & Beverage Software Culinary Software Services 1900 Folsom Street #210 Boulder, CO 80302 (303) 447-3334

Interior/Architectural Design C2 Limited Design Associates 95 Reef Road Fairfield, Connecticut 06824 Tel: (203) 259-2555 Fax: (203) 259-2565 Website: www.c2limited.com Email: studio@c2limited.com Contact: Craig J. Smith Ferry, Hayes & Allen Designers, Inc. 1100 Spring Street, Suite 600 Atlanta, GA 30309 Tel: (404) 874-4411 Fax: (404) 874-1099 Website: www.fhadesigners.com Email: jbarret@fhadesigners.com Contact: Jeff Barrett, executive vice president HINT | Harris Interiors 49B Lenox Pointe Atlanta, GA 30324 Tel: (404) 403-2931 Website: www.hintatlanta.com Email: kelley@hintatlanta.com Image Design, Inc. 3330 Cumberland Blvd.

Atlanta, GA 30339 Tel: (770) 952-7171 Fax: (770) 933-9093 Website: www.imagedesign.com Email: mfleming@imagedesign.com

History Private Club Historical 1100 South Coast Highway, Suite 309 Laguna Beach, CA 92651 Tel: (949) 497-6543 Website: www.privateclubhistorical.com E-Mail: Tom@privateclubhistorical.com Contact: Tom Neill

Kitchen & Banquet Spring USA 127 Ambassador Drive #147 Naperville, IL 60540 (630) 527-8600 Website: www.springusa.com

Locker Room Suppliers Sports Solutions, Inc. 2536 Manana Drive Dallas, TX 75220 Tel: (800) 969-8008 Fax: (214) 351-2609 Website: www.sportssolutionsinc.com Email: sales@sportssolutionsinc.com Contact: Laurie Schmidt

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

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

Technology Culinary Software Services 2930 Center Green Court Boulder, CO 80301 (303) 447-3334 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

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

BOARDROOM MAGAZINE ADVERTISING INDEX ACCP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Addison Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Ambassador Uniform. . . . . . . . . . . . . . . . . . . . . . 25 Architectural Design & Planning Group. . . . . . 69 Big John Grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 BoardRoom’s Distinguished Clubs. . . . . . . . 94-95 Boothe Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Bozeman Club & Corporate Interiors. . . . . . . . . 13 C2 Limited Design Associates. . . . . . . . . . . . 46-47 Chambers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48-49 Clubessential. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ClubPay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Clubtec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-29 Clubwise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Club Capital Planners. . . . . . . . . . . . . . . . . . . . . 132 Club Design Associates. . . . . . . . . . . . . . . . . . . . 93 Concert Golf Partners. . . . . . . . . . . . . . . . . . . . . . 31 Cornilleau USA. . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Creative Golf Marketing . . . . . . . . . . . . . . . . . . . 3 Daniel Paul Chairs. . . . . . . . . . . . . . . . . . . . . . 44-45 DEI Food Service Equipment Design. . . . . . . . . 97 Denehy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Duffy’s Tri-C Club. . . . . . . . . . . . . . . . . . . . . . . . . . 71 EA Photography. . . . . . . . . . . . . . . . . . . . . . . . . . 85

Eustis Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 EZ Links. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Flora Springs Winery. . . . . . . . . . . . . . . . . . . . 50-51 FOOD-TRAK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 George Golf Design. . . . . . . . . . . . . . . . . . . . . . . . 15 GCSAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Golf Insurance by Epic. . . . . . . . . . . . . . . . . . . . 119 Golf Maintenance Solutions. . . . . . . . . . . . . . . 132 Golf Scorecards. . . . . . . . . . . . . . . . . . . . . . . . . . 129 Grigg Bros.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 52-53 GSI Executive Search. . . . . . . . . . . . . . . . . . . . . . 98 HFTP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 & 33 High End Uniforms. . . . . . . . . . . . . . . . . . . . . . . . 63 Hilda Allen Real Estate. . . . . . . . . . . . . . . . . . . . 121 HINT | Harris Interiors. . . . . . . . . . . . . . . . . . . 54-55 Hollman Lockers. . . . . . . . . . . . . . . . . . . . . . . . . . 85 JBD & Jefferson Group Architecture. . . . . . . . . 99 Kathy O’Neal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 KECamps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 KemperSports. . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Kopplin Kuebler & Wallace. . . . . . . . . . . . . . . . . . 31 Lichten Craig Architecture + Interiors. . . . . . . 101 MAI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56-57 McMahon Group. . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Northstar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 PCMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Peacock + Lewis. . . . . . . . . . . . . . . . . . . . . . . . . . 67 Petra. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 PGA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Polar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Procraft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Reid Consulting. . . . . . . . . . . . . . . . . . . . . . . . . . 123 Rogers McCagg. . . . . . . . . . . . . . . . . . . . . . . . . . . 17 RSM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Salsbury. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 SES Lighting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Signera. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Slimfold Grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Something Different. . . . . . . . . . . . . . . . . . . . . . 87 Sports Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . 73 Stratton Crooke. . . . . . . . . . . . . . . . . . . . . . . . . . 111 St. Timothy’s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 TAI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Troon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 USPTA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Welch Tennis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 XHIBTZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

BOARDROOM MAGAZINE COUNTRY CLUB INDEX Tom Behrendt, locker room manager, Arrowhead Country Club, Glendale, AZ Christopher Bilko, communications manager, Belle Haven Country Club, Alexandria VA Chris Boettcher, CCM, CCE, GM/COO, Burlingame Country Club near San Francisco, CA Steve Buck, GM/COO, Shady Canyon Golf Club, Irvine, CA Ron Bullard, Jr., locker room and men’s grille manager, Desert Highlands Golf Club, Scottsdale, AZ Michael Chase, CCM, GM, The Beach Club of Santa Monica, CA Kimberly Clark Warren, country club manager, Cherokee Town and Country Club, Atlanta, GA Addison Craig, golf professional, Bridge Golf Club at Bridgehampton, NY Tony D’Errico, COO, Quail West Golf & Country Club, Naples, FL Kristofer J. Fair, CCM, GM, Blue Bell Country Club, Montgomery County, PA Mary Geiss, CCM, GM, Cape Fear Country Club, Wilmington, NC Matt Guzik, CMM, GM, Tara Iti GC, 100 km northeast of Auckland, N.Z. Luis Hermosillo, locker room manager, San Gabriel Country Club, San Gabriel, CA Executive Chef Thayer Johnson, Stone Brae Country Club, Hayward, CA Brian Kroh, CCM, GM, John’s Island Club in Vero Beach, FL Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI Craig Martin, GM/COO, St. Andrews Country Club, Boca Raton, FL Rob Martin, club manager, Wycliffe Country Club, Wellington, FL

Bill Martz, locker room manager, Portage Country Club, Akron, OH Eduardo Moreno, GM, River Crest Country Club, Fort Worth, TX MacDonald Niven, MA, CCM, CCE, GM, Almaden Golf and Country Club, San Jose, CA Luke O’Boyle, GM/COO, Chevy Chase Club, Chevy Chase, MD Gregg Patterson, member, The Beach Club of Santa Monica, CA Steven Poe, master sommelier and beverage director, Big Canyon Country Club, Newport Beach, CA Marc Possidento, GM/COO, Country Club of Darien, Darien, CT Matt Ruehling, GM, Brookside Golf & Country Club, Columbus, OH Jeremy Samson, GM, Mesa Verde Country Club, Costa Mesa, CA Robert A Sereci, CCM, GM/COO, Medinah Country Club, Medinah, IL Rosie Slocum, MCMP, director of membership, BallenIsles Country Club, Palm Beach Gardens, FL Sandra Sawin, director of membership & communications, Belle Haven Country Club, Alexandria VA Steve Vlahos, GM, Mission Viejo Country Club in Mission Viejo, CA David Voorhees, GM/COO, Big Canyon Country Club, Newport Beach, CA Joseph “J.J.” Wagner, CCM, CCE, GM/COO, Santa Ana Country Club, Santa Ana, CA Tim Ward, CCM, GM, North Shore Country Club, Glenview, IL Mike Wochek, banquet manager, Cherokee Town and Country Club, Atlanta, GA JANUARY/FEBRUARY 2017 | BOARDROOM

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CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 268

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VOLUME XXI JANUARY/FEBRUARY

Vo lume XXI, Ja n ua r y/F eb rua r y 2017

10 | PUBLISHER’S PERSPECTIVE

106 | MEMBERSHIP MARKETING

Do Boards Make Legal Mistakes?

Branding your Way to Success

68 | EXECUTIVE COMMITTEE

112 | BOARDROOM ON TOUR

Lessons in Leadership - Success is Not Accidental

The Pulse of the Industry with Orange County, CA Clubs