January/February 2018 BoardRoom magazine by BoardRoom magazine

The BoardRoom magazine

CELEBR ATING 22 YEARS OF EDUC ATING THE PRIVATE CLUB INDUSTRY ISSUE 274

VOLUME XXII JANUARY/FEBRUARY

Volume XXII, Jan uar y/Febr uar y 2 018

Keith Berk

Northmoor Country Club

10 | PUBLISHERâ&#x20AC;&#x2122;S PERSPECTIVE

66 | GLOBAL PERSPECTIVES

DO CLUB BOARDS ACT TOO QUICKLY IN SHOWING THEIR GM THE DOOR?

CHANGING TRENDS FOR PRIVATE CLUBS IN 2018

34 | EXECUTIVE COMMITTEE

THE BAY HEAD YACHT CLUB, CHAMPIONS RUN COUNTRY CLUB, CHEROKEE TOWN & COUNTRY CLUB, OKLAHOMA CITY GOLF & COUNTRY CLUB, SAILFISH POINT

CHANGE YOUR THINKING FOR TRUE TRANSFORMATION

100 - 104 | INNOVATIVE IDEAS

SEE FOR YOURSELF AT CMAA BOOTH NUMBER 1521 IN SAN FRANCISCO.

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DAVE WHITE 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.

EDITOR’S NOTE

Kudos to BoardRoom’s Top Presidents “Change is what comes to mind,” says Gurnow. “At first It’s recognition time again and a tip of the hat this year goes to Keith Berk, president of Northmoor Country Club in Chicago, IL as glance, the National Golf Foundation’s 2017 annual report on participation doesn’t paint a pretty picture with the BoardRoom magazine’s Distinguished Club President of the Year. BoardRoom magazine, for the 10th consecutive year, is honoring 21 Private Club Presidents of the Year – 2017 for practicing what they preach – leadership for the betterment of their clubs – board presidents or chairs that have served as the volunteer leaders of their club. It’s been a year of achievement for president Berk, BoardRoom’s 2017 Distinguished President of the Year, as the club has taken a big step in moving from decentralized governance to that of the general manager/COO concept. Berk, in our cover story, says: Northmoor enjoys a unique culture where our board members like and respect each other and our membership has confidence and trust in the board. When presented with well thought out positions supported by industry data, the changes we suggested were accepted with less controversy than I expected. “The changes are significant,” added Berk, not only because of the new governance structure, but also because David Der-fel signed on as the club’s first general manager/ COO. “It certainly has put Northmoor Country Club on a different road, and one that we expect will be for the best,” commented John Fornaro, BoardRoom magazine’s publisher and CEO. “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,” he added. Our congratulations go out to 21 clubs, Berk and 20 other Club Presidents of the Year for their exceptional contributions to their home clubs. You can read more about it in our cover story this issue.

We keep hearing how much the golf industry is stagnating, for myriad reasons. But there are some clubs working hard to bring about change, whether it’s in the programs, the golf courses or other methods clubs are using to appeal to participants. In his first contribution to BoardRoom, Mark Gurnow, a 37-year PGA member and general manager of Superstition Mountain Golf and Country Club tells us what his club is doing to attract more golfers.

ever-familiar, no-growth refrain…but only upon first glance. This year the report included off-course participation - driving range and golf simulator type of activities and there we see a whole new picture.” Part of the picture is the fact that a new generation of golfers often isn’t interested in spending an entire day on the course, and as Gurnow outlines, this has led to some changes. “Because time is a precious commodity and one of our biggest competitors, we need to welcome new ideas …that will allow members to enjoy the game without a major time commitment.” To Gurnow that means rounds of fewer than 18 holes, new formats and easier rules. And he’s putting it into practice at Superstition. “I believe the reverence and tradition around the great game of golf and private club membership should never change, but think the next five – 10 years will bring a lot more flexibility into the way clubs are run. This is an exciting time for our industry,” he suggested. And he could well be right!

As you’ve likely noticed, BoardRoom during the past year has published a significant number of stories about Millennials and stories written by Millennials. Friedrich Eder, general manager at Fairview Country Club in Greenwich, CT, is taking another approach – mentoring Millennials. “Truth is, we need to make development of people our top priority without feeling threatened… Select the top 20 percent of people around you and develop a relationship,” Eder explains. “The ones I like to mentor are those who make things happen. Look for leaders that attract leader…be selective of whom you want to mentor,” says Friedrich who offers some interesting points, not to be ignored. Give it a read!

And it’s time for just a little bit of celebration as BoardRoom magazine enters its 22 years as the premier magazine of the private club industry. Thanks for all our supporters – readers, contributors and advertisers. And here’s to the future! BR

Publisher/CEO

Co-Founder/CEO

John G. Fornaro

Editor/Co-Publisher

President

Dave White

Keith Jarrett

Assoc. Editor/VP Creative/Co-Publisher

Chief Analyst

Heather Arias de Cordoba

Frank Gore

APCD Executive Director

Chief Information Officer

Bill Thomas

Jeff Briggs

Editorial & Marketing Director

Executive Director

Dee Kaplan

Bill Thomas

Accounting

Business Development Manager

Susan Giem

Christiรกnne Kinder

Contact Information

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

www.DistinguishedClubs.com (949) 376-8889

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

Featured Columnists Henry DeLozier John G. Fornaro Bonnie J. Knutson Nancy M. Levenburg

Sam Lindsley Gregg Patterson Whitney Reid Pennell Kevin F. Reilly

Bill Schwartz Robert Sereci Tom Wallace Dave White

Contributing Writers Joe Abely Bill Boothe Lisa Carroll Ronald F. Cichy Caleb Christopher Rick Coffey Addison Craig Rita B. Craig Michael Crandal, CNG Dave Downing Todd Dufek

Dave Duval Friedrich Eder John Embree Steve Graves Mark Gurnow Larry Hirsh Jeremy Hoch Matthew Januszek Rick Ladendorf Lynne LaFond DeLuca Craig Martin

Ned McCrory Steve Mona Tom Neill Macdonald Niven Mike Phelps Corey Saban Brett C. Schwartz Rosie Slocum Robyn Stowell Meghan Thibault Frank Vain

Terra S. H. Waldron Bruce R. Williams Philip L. Zeller

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 272 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 8

PUBLISHER’S PERSPECTIVE | 10

PLIGHTS AND INSIGHTS | 12

BOARDROOM BASICS & BEYOND | 14

DO CLUB BOARDS ACT TOO QUICKLY IN SHOWING THEIR GM THE DOOR?

PROS AND CONS OF OUTSIDE EVENTS

THE KEY PRINCIPLES OF TEAM DEVELOPMENT - PART I

BY JOHN G. FORN ARO

BY TOM WALL ACE AND SAM LINDSLEY

Just as private clubs have turned to young families within their midst to bolster memberships and revenues, many have also turned to outsiders by offering up their facilities as venues for everything from weddings to retirement parties, baby showers, holiday celebrations, golf tournaments, family reunions, and so on. You name it and your club has probably hosted it! Why?

FOOD FOR THOUGHT | 16

LEADERSHIP MOMENTUM | 18

CLUB FACTS & FIGURES | 44

BUSTING THE FOOD COST BUDGET

EXACTLY WHAT ARE WE SELLING?

BY BILL S CHWARTZ

BY ROBE RT S ER ECI

THE CLUB BUDGET THE PROCESS IS CRITICAL

Every foodservice organization on the planet sets a budget for food costs. Chefs and F&B directors who can hit the budget are considered better managers than those who exceed it. I’m amazed at how unscientifically this number is determined, and even more amazed at how chefs and kitchen management teams are judged on their ability to hit a number they have so little control over.

Although we are on most golfers’ bucket list, it wasn’t enough to bring in new members. Since my arrival, and especially during the execution of Phase 1 of Medinah 2020, I often had members tell me that we seem to have invested a lot in attracting new members through hosting major tournaments, but with very little return on that investment – ROI, in this case, being new members.

BY KEVIN F. REILLY

MEMBERSHIP MUSINGS | 62

GLOBAL PERSPECTIVES | 66

TRIBAL MAGIC | 106

CLUB OR CULT?

CHANGING TRENDS FOR PRIVATE CLUBS IN 2018

DELIVERING “BIG SPANK” TO APPRAISAL ANGST

BY HENRY DELOZIER

BY GREGG PATTERSON

Private clubs are often a bastion of oldschool practices and slow, moderated change. The pace of change in most private clubs has accelerated and will make big jumps in 2018. Club leaders must plan for progress in their clubs on three clubaltering changes in 2018.

Managers and supervisors hate doing employee appraisals. They take preparation. They lead to confrontation. They involve disappointment. They can be dull as a rock. They’re awkward, time consuming and, more often than not, unproductive. They’re a demon, a “must do” nobody wants to do. And they generate …appraisal angst. Too bad, because it needn’t be so. Why Spank the Angst???

BY BONN IE J. KN UTS ON

Marines proudly have them. So do a lot of football and basketball players. Then there are the “bikers.” (No, I’m not just referring to the stereotypical image of a stout, leather clad, bearded, Easy Rider from the 1969 movie of the same name.) Today, we can add Brand Loyalists, Brand Fanatics, or as Ken Blanchard calls them, Raving Fans to the reams of consumers displaying brandart on their bodies.

BY NANCY M. LEVENBURG

Why is it some clubs seem to consistently attract and keep the ‘best and the brightest’ talent in all levels of the operation, while others seem to be in ‘always hiring’ mode? There are key proven team engagement, development and mentoring principles that can help you attract, enhance and keep your top employees.

In the recent past, clubs cut spending because of a decline in membership and in spending by the members that remained. However, membership desires were not eliminated. The members want a new pool, the grill needs new furniture, the golf course needs a new irrigation system, the tennis courts need to be resurfaced and by the way, the club down the street is making these improvements.

SECTIONS INSIGHTS. . . . . . . . . . . . . . . . . . . . . . . . 46

DEPARTMENTS

The Difference Between What You Do And What Your Job Is

A SSOCI ATI ON OF P RI VATE CLUB D I RE CTORS. . . . . . . . . . . . . . . . . . . . . . 20

PERSONAL DEVELOPMENT. . . . . . . . . 48

By Dave White

Cover Story: Northmoor’s Keith Berk BoardRoom magazine’s Distinguished Club President for 2017

By Michael Crandal, CNG

High Fives for High Performance

W ORL D G OL F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

By Rita B. Craig

Coming Together for the Good of the Game By Steve Mona

ON THE FRONTLINES. . . . . . . . . . . . . . 70

Mentoring Millennials

TE NNI S COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

By Friedrich Eder

USPTA Offers Leadership Academy By John Embree

ON THE FRONTLINES. . . . . . . . . . . . . . 72

Why We Don’t Make Money in F&B!

E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

By Macdonald Niven and Terra S. H. Waldron

World Conference - See You in San Francisco!

CUL I NA RY A ND CATE RI NG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

The Most Important Investment You Can Make

ON THE FRONTLINES. . . . . . . . . . . . . . 74

Staying Current in Golf’s Evolving Landscape By Mark Gurnow

By Lynne LaFond DeLuca

COMMITTEES

INNOVATIVE IDEAS. . . . . . . . . . . . . . 100

Bay Head Yacht Club

By Meghan Thibault

EXECUTIVE COMMITTEE. . . . . . . . . . . 28

Impact of Debt on Clubs’ Strategic Plans By Joe Abely and Dave Duval

INNOVATIVE IDEAS. . . . . . . . . . . . . . . 101

Champions Run Country Club By Meghan Thibault

By Meghan Thibault

Keep Your Club Competitive Reinventing the Fitness Center By Matthew Januszek

EXECUTIVE COMMITTEE. . . . . . . . . . . 30 WELLNESS COMMITTEE. . . . . . . . . . . 60

EXECUTIVE COMMITTEE. . . . . . . . . . . 34

By Rick Ladendorf

By Whitney Reid Pennell

MARKETING COMMITTEE. . . . . . . . . . 64

By Larry Hirsh

Change Your Thinking

Infrared Saunas: A Hot Wellness Trend with Less Heat!

Oklahoma Golf & Country Club

EXECUTIVE COMMITTEE. . . . . . . . . . . 36

INNOVATIVE IDEAS. . . . . . . . . . . . . . 104

By Ronald F. Cichy and Philip L. Zeller

MARKETING COMMITTEE. . . . . . . . . . 65

By Meghan Thibault CLUB SERVICE. . . . . . . . . . . . . . . . . . . 118

By Meghan Thibault

Sailfish Point

Leading the Club of the Future Are You Thirsty for More? By Chris Boettcher

Appreciation > < Engagement

The Tennis Professional Is Your Most Valued Employee By Brett C. Schwartz

By Craig Martin

Base Decisions on Science …Not Guess Work By Dave Doherty

GREEN COMMITTEE. . . . . . . . . . . . . . . 89

EXECUTIVE COMMITTEE. . . . . . . . . . . 38

By Corey Saban

Water, Water …Too Much Water

By Frank Vain

LEGISLATIVE COMMITTEE. . . . . . . . . . 68

GREEN COMMITTEE. . . . . . . . . . . . . . . 90

By Robyn Stowell and Ned McCrory

By Bruce R. Williams

Opportunity Knocks

GOLF COMMITTEE. . . . . . . . . . . . . . . . 40

How to Create a Great Golf Instruction Experience Especially for Millennials

Sticker Shock : Employee Fraud and Theft

HITORY COMMITTEE. . . . . . . . . . . . . . 42

CLUB DESIGN ASSOCIATES. . . . . . . 50-51

Historical Investigation Waiting Just Below the Surface By Tom Neill

HIGH END UNIFORMS. . . . . . . . . . . . . 97

By Dave Downing

Robots, Computers and Drones It’s the Future…Now

TECHNOLOGY COMMITTEE. . . . . . . . . 92 MEMBERSHIP COMMITTEE. . . . . . . . . 76

CASE STUDY

How Do Clubs Handle Cognitive Dissonance? By Steve Graves

Cybersecurity Series - Part I Network Segmentation By Caleb Christopher

TECHNOLOGY PERSPECTIVE. . . . . . . . 94 MEMBERSHIP COMMITTEE. . . . . . . . . 77

New Member Onboarding What Do You Expect of Your Exec. Chef? More Ripple Please

SLIMFOLD GRILLS. . . . . . . . . . . . . . . . . 98

HOUSE COMMITTEE. . . . . . . . . . . . . . . 54

SPORTS SOLUTIONS. . . . . . . . . . . . . . . 99

By Lisa Carroll

By Mike Phelps

HOUSE COMMITTEE. . . . . . . . . . . . . . . 56

MEMBERSHIP COMMITTEE. . . . . . . . . 78

RCS HOSPITALITY GROUP. . . . . . . . . 105

By Rosie Slocum

Adapt or Perish

By Addison Craig

GASSER CHAIRS. . . . . . . . . . . . . . . . 52-53

Marketing Matters

GREEN COMMITTEE. . . . . . . . . . . . . . . 88

Turning Your Golf Performance Center Into a Marketing Tool

INNOVATIVE IDEAS. . . . . . . . . . . . . . . 103

MEMBERSHIP COMMITTEE. . . . . . . . 80

TENNIS COMMITTEE. . . . . . . . . . . . . . 86

Club Culture - The Economic Impact

INNOVATIVE IDEAS. . . . . . . . . . . . . . . 102

Cherokee Town and Country Club

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

Credit Cards and eChecks Some Concepts to Consider By Bill Boothe

TECHNOLOGY COMMITTEE. . . . . . . . . 96

Smart Phones are Integral Part of Locker Room By Todd Dufek

Stockpiling Member Data is a Great Idea By Rick Coffey

What Software Manuals? By Jeremy Hoch

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 Club Boards Act Too Quickly in Showing Their GM the Door? Why do private club boards give their general manager the boot? Is this decision well thought out? Have the general managers been given a fair shake? Are GMs ousted because of someone’s personal agenda?

General managers are often considered the most important person in the daily life of thousands of private clubs across the country. Over the years, they’ve been known by other names, including chief cook and bottle washer. They do what’s necessary, when necessary. General managers make the club hum…they keep members happy, they balance budgets, plan for the future, communicate and relate with department heads, raise money, oversee construction or renovations and hopefully with some balance in their lives have time for family life.

“The Rule of Five has always been applicable. It takes five years for a new manager to truly know their club, the politics, the people, the facility, the employee team, and the norms and possibilities,” Patterson exclaimed. While that may be true, what leads to the firing (or resignation) of a club’s general manager? “I believe the main reason boards terminate their general manager is that they lose confidence in them as their leader. When presenting yourself as the club’s next GM, no one expresses their management style as one from managing from their office. So, it is vital for GMs to be very visible not only for the members, but for the associates as well,” expressed Barrett Eiselman, a former general manager and an analyst with BoardRoom’s Distinguished Clubs.

Yes, it’s no coincidence that many GMs are replaced around the three-year and six-year mark. That’s because everyone on the board who was involved in the hiring of the GM is off the board. Put yourself in the general manager’s shoes. Every year, he has a different boss. With different style and agendas. However, dealing with this can be solved with the club’s creation of a strategic plan. Often, with seemingly regularity, GMs move from one club to another for various reasons. Occasionally some general managers will remain at their clubs for many years. They and their club have found ‘the right fit’, all of which leads to stable and familiar leadership for both members and staff. Information from the Club Managers Association of America’s most recent Compensation and Benefits Reports for heads of clubs (GM/CEO and COO), indicates that “half of those in the most senior position at their club had club tenure of six years. Twenty-five percent of HOCs had an industry tenure of three years while 25 percent had an industry tenure of longer than 10 years.” Gregg Patterson, the now-retired GM who spent 33 years at the Beach Club of Santa Monica, CA, suggests the Rule of Five is a reason that keeps a GM on the job.

“Too many GMs find reasons not to be on the floor during high usage times and rarely do you see GMs walking the tee line on the driving range when it is bustling with members. The office becomes a safety zone for too many managers and this ultimately catches up with them,” he added. “However, in saying this, I do believe that the average tenure for GMs has increased over the last 10 years. The 2008 recession flushed out the GMs who are challenged to operate a club during tough times. Plus, it gave GMs an appreciation of employment when many managers were struggling to find work.” Often, it’s all about expectations… of both the GM and the club’s board of directors. “I’ve observed that if a general manager is released from a club in the first year or two of their tenure, it is SEE PUBLISHER’S PERSPECTIVE | 115

BOARDROOM | JANUARY/FEBRUARY 2018

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

Pros and Cons of Outside Events Have you heard comments like these about outside events hosted at your private club?

• Gr-r-r-r-r-r… I’m really aggravated. I couldn’t play golf on Monday because we were hosting some kind of outing. • I thought the locker room was private…it always used to be! But when I went in there last Saturday, there was a wedding party getting ready… clothes strewn all over the place, and somebody was even smoking a cigar! I guess the rules only apply to members… the public can do whatever it wants. • Have you ever gotten a straight answer from the board about how profitable it is to host all these outside events? • I’m beginning to wonder if it’s worthwhile to be a member at the club. Sometimes I think I’d be treated better if I wasn’t a member. Just as private clubs have turned to young families within their midst to bolster memberships and revenues, many have also turned to outsiders – the public – by offering up their facilities as venues for everything from weddings to retirement parties, baby showers, holiday celebrations and annual dinners, hosting community golf outings and tournaments, family reunions, and so on. You name it and your club has probably hosted it! Why? That’s because as Jeff Sackman, CPA, writes: Clubs are operating with memberships that are well below the levels necessary to sustain a healthy, balanced budget at the current market-rate for monthly dues. In a perfect world, a club would just raise dues to offset the lost revenues when membership levels declined, but there are very few clubs in existence that can do this without seeing a mass exodus of the remaining membership. The reality is that most clubs tack on an ‘operating assessment’ to make up for the shortfall, which in essence accomplishes the same result as increasing dues. Herein lies the fork in the road, where a club chooses the path of funding the deficit through creating experiences that will attract new members or by chasing non-member revenues. PROS OF ATTRACTING NEW MEMBERS

A new member is, after all, a new member – someone who brings to the club not only an initiation fee, but a

BOARDROOM | JANUARY/FEBRUARY 2018

steady stream of revenue vis-à-vis monthly dues, capital assessments and club spending. For example, after paying a $3,000 initiation fee, the annual “dollar revenue” of a new member couple aged 45plus years at a nearby West Michigan club is over $9,000, excluding food. This is based on $8,112 in monthly dues ($676/month x 12 months) plus $900 in monthly capital assessment ($75/month x 12 months). In addition, this club has an annual dining minimum of $990, which generates even more revenue. NON-MEMBER EVENTS

Obviously, allowing non-members to host events at your club brings in revenues. Let’s say that you allow an outsider to host a wedding at your club. This same club requires a $3,000 non-refundable deposit to secure the room and date, which is applied towards the final bill. The club also requires a $35 minimum per person for food and beverages, plus 18 percent gratuity, four percent service charge, and six percent sales tax. If the wedding cake comes from an outside supplier, there’s a $1/slice serving fee. Let’s say your club hosts a wedding for 150 guests. At $50/person, that’s $7,500 in revenue. Assuming your club can host 10 such weddings annually, it will generate $75,000 in revenue for the club. However, who pays the extra expenses for additional staff needed to cook and serve 150 people? If the club’s net profit is 20 percent on these events, it nets a grand total of $15,000 on 10 weddings. Compare this to the gains from bringing in just one new member who generates first-year revenues for the club of nearly $12,000, and $9,000 annually thereafter, all of which goes straight to the bottom line. By the time the new member reaches their 15-month club membership anniversary, you’ve reaped all the gains of hosting 10 weddings… and without all the grumbling. Hm-m-m-m-m… BR

TOM WALLACE

SAM LINDSLEY

BOARDROOM BASICS AND BEYOND

The Key Principles of Team Development - Part I Why is it some clubs seem to consistently attract and keep the ‘best and the brightest’ talent in all levels of the operation, while others seem to be in ‘always hiring’ mode?

There are key proven team engagement, development and mentoring principles that can help you attract, enhance and keep your top employees. The key principles are: 1. Turn faith into trust 2. Have a process 3. Engage your team 4. Cultivate your team 5. Challenge your team 1. TURN FAITH INTO TRUST

When you are first hired by an organization, you have faith that you are going to do a great job. Your new employer has faith that they have made the right decision. Now what? The first step in team development is turning that initial faith into trust. There are many ways to help turn faith into trust, but one of the most important is to establish a supportive environment. Does the new teammate feel comfortable engaging with you and the rest of the team? Do they feel confident that their thoughts will be respected and not ridiculed?

There will be differences. Different generations, different perspectives, different levels of emotional intelligence and overall experience and all this translates into different expectations of you. But the common denominator in creating a trusting environment is sharing insight. The giving and getting of information must happen freely and be motivated by what’s best for the team. Be self-aware and teach your team self-awareness. Great leaders share insight about themselves including their strengths and weaknesses to strengthen the team and build an environment of trust, respect, and understanding. 2. HAVE A PROCESS

The teammate lifecycle (TLC) involves eight steps. If we focus on these steps, we can take care of our greatest asset, our team, which in turn enables us to build and maximize the member experience. The eight steps are recruitment, selection, orientation, culture setting, training and development, recognition & retention, feedback, and continued education. You must have a written standard operating procedure and a key understanding of best practices in these areas. The very best companies have a white paper that describes how each of these areas will be handled in their organization.

A lot of organizations talk about open door policies, but you must create a culture that truly believes it. Expect all members of leadership to be connected with their team always. The leadership team should be very approachable. Meetings should be an open dialogue where everyone contributes, and no one is made to feel as if their opinion is not important. You don’t have to be the smartest person in the room when you are a leader, but you have to be the best listener. You set the tone for an inclusive and supportive environment. As the leader, you have to be able to make the hard decisions and to do that you need good information. You trust your team to get you that information. The team needs to be comfortable sharing and sharing promotes trust. 14

BOARDROOM | JANUARY/FEBRUARY 2018

Recruitment: First, you must recruit from only the best sources. You must know where you’re going to look, how you’re going to market and when. Build your plan of attack for the “war on talent” whether it’s specific job posting websites and apps, your website, networking, job fairs or word-of-mouth. SEE BOARDROOM AND BEYOND | 114

BILL SCHWARTZ

FOOD FOR THOUGHT

Bill Schwartz is the founder and CEO of System Concepts, Inc. (SCI). Based in Scottsdale AZ, 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

Busting the Food Cost Budget Every foodservice organization on the planet sets a budget for food costs. Chefs and F&B directors who can hit the budget are considered better managers than those who exceed it.

From a financial standpoint, it’s necessary to have a budget and try to stay close to it. I’m amazed at how unscientifically this number is determined, and even more amazed at how chefs and kitchen management teams are judged on their ability to hit a number they have so little control over. Consider the chain restaurant that sets a budget for its stores at 30 percent. Manager “A” gets a 29 percent and Manager “B” at a different store with identical menus gets a 32 percent. We might be tempted to say Manager A is the better manager. If we could calculate the best food cost each store could possibly have run during the period, the conclusion could be quite different. This cost, sometimes called the theoretical, ideal or perfect food cost is based on the cost of using exactly the right amount of food by controlling theft, waste, spoilage and overportioning. The calculation takes into consideration the number of each menu item legitimately distributed or sold, the item recipes and the yield potential of each raw ingredient. If Manager A with the 29 percent could have run a 26 percent food cost (a three-point variance), and Manager B with the 32 percent could have run a 31 percent based on the perfect cost (a one-point variance), it is clear that Manager B ran a more efficient operation than Manager A. This points out the inherent danger of using the budget as a determinant of capability. Many managers and chefs have been terminated for missing their budget, even though they were running very tight operations. If the operation is running with little variance and still can’t hit the budget, other adjustments not related to talent need to be made. Actual food costs vary by meal period and day. Purchase prices fluctuate widely on food items. Choices made by restaurant patrons change as well, and item yields can vary significantly. Simply consider the difference in seasonality for all three key factors. Produce purchased off season can have lower yields and higher costs. The addition of daily specials, catering and weather conditions increase cost variability.

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Under these conditions, it is simply impossible to hit the budget number consistently. In order to do so, the menu, the recipes and the types of items purchased have to either be set to produce the budget food cost (which is impractical), or be monitored and adjusted constantly. Since raw material costs change daily, it would be necessary to accurately calculate the food cost and sales on a daily basis, compare the results to the budget and adjust the three cost components. This would require at least one full-time accounting position, offsetting any gains in cost reduction. Even with software capable of performing the calculations, people would not be able to take daily inventories, make adjustments to recipes and correctly predict the next day’s sales mix. Chefs and F&B managers understand the basic unfairness of determining their competence based on performance against the budget. Some actually “fudge” period-end inventories or delay posting of purchases to make the numbers work. However, there are ways to tackle this problem and get as close as possible to the desired budget, without changing staff. Reducing variance between actual and ideal food usage is first. With low variances, the focus can shift to other factors that are far more controllable. Accurate and current recipe costs are the next step. This allows development of a product contribution ranking that provides most of the information needed to make good periodic menu change decisions. Slight changes to high contributors can have a more significant impact on food costs than major menu changes. Finally, using smart purchasing techniques such as purchase orders and bidding help reduce costs before the food enters the building. Software is available to help with all these things, but it starts with the proper mindset. Busting the managers or chefs if they don’t achieve what could be unrealistic budget numbers is only effective if they are allowing the operation to run with high variances. But if they already run a tight ship, bust the budget first. With good data dealing with variance, usage, costs and product contributions, adjustments can be made to develop realistic, achievable budgets. BR

ROBERT SERECI Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, IL. He can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org

LEADERSHIP MOMENTUM

Exactly What Are We Selling? Editor’s note: This article is based on a white paper Robert Sereci prepared for his board of directors.

Although we are on most golfers’ bucket list, it wasn’t enough to bring in new members.

Since my arrival, and especially during the execution of Phase 1 of Medinah 2020, I often had members tell me that we seem to have invested a lot in attracting new members through hosting major tournaments, but with very little return on that investment – ROI, in this case, being new members. Our membership population levels, like most clubs, were adversely affected by the 2008’s economic downturn. During this same time period, we invested in remodeling Course No. 3 and hosted the 2012 Ryder Cup, which offered worldwide media coverage and the largest attendance in Ryder Cup history.

attracting new members. The proposition is not what we do, or have done, but rather why do we do the things we do? What is our purpose? What do we believe in? Why do we exist in the first place? PUBLIC AWARENESS

Many club’s investments have been made to satisfy the internal needs of their existing club community. Why do so many people wear name brand apparel or yearn to be a part of, or play at, a particular well-known private club? It is because they want to experience being there and they want to carve out and take away a little piece of the experience? But, in many cases, this doesn’t mean they want to join. Why? Most of these same folks

We are not in the business of selling memberships. We are in the business of selling community. Prospective members talk about buying things such as access to a clubhouse dining room or golf course, but what they really want to buy into is a community with like-minded others. The activities and amenities are just the details surrounding how to experience community and fellowship, which enriches their relationships and personal connections throughout their lives. The fundamental building blocks of the club community is the need to belong to a group with common interests and a basic alignment of core values among the members. Aside from the very real impacts of the 2008 economic crisis, the answer to increasing private club memberships today is as complex as it is simple. Although it is true of human nature that we are attracted to what is popular and/or prestigious, this is not the rooted, driving force that propels an individual to join a country club. When we talk about our golf courses, our history, our iconic clubhouse and all the high-profile tournaments that we have hosted, it still doesn’t cut to the real reason why most join a club community. Now, while this is my opinion, and it may not be what is on your mind, my years of experience in club management lead me to this conclusion about why we have struggled in 18

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cannot afford to belong, or don’t have the connections to the club’s community. So, I look at our own investment into our improvements as serving our community, as opposed to simply attracting new members. It’s a mistaken assumption that we only attract new members by virtue of possessing quality amenities, or a rich golf history. This faulty belief may have been partly to blame for our slow membership decline, a situation we have addressed with our current Medinah 2020 improvements and investments. By the way, we are not alone. The same faulty asSEE LEADERSHIP MOMENTUM | 113

COVER STORY |

BY DAVE WHITE, EDITOR

Northmoor’s Keith Berk Keith came into his presidency with a long and aggressive list of goals. Incredibly, he accomplished every one. His leadership will be felt by future boards and the membership for many years to come. – Jeffrey A. Wellek, Northmoor board member. And so goes the recognition of Keith Berk at Northmoor Country Club in Chicago, Illinois, upon his selection as BoardRoom’s Distinguished Club President for 2017. BoardRoom magazine this year is recognizing 21 Private Club Presidents of the Year – 2017, 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 10th 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 2017 and are honoring 21 club presidents from the U.S., South Africa and New Zealand,” explained BoardRoom magazine’s publisher and CEO John Fornaro. “Our selection of the top 20 presidents and Keith Berk as our Distinguished Club President signifies another successful search for leaders who have contributed so much to their private clubs and their member experience. “President Berk has led his club through a calculated change in the club’s management structure that bodes well for the club’s future,” 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. “This is a wonderful achievement for Keith Berk,” acknowledged Gordon Welch, president of the APCD. “Congratulations. The Association of Private Club Directors (APCD) is thrilled to recognize this outstanding achievement and award,” he added. “Kopplin, Kuebler & Wallace has been fortunate over the past number of years to partner with BoardRoom magazine in recognizing the dedicated individuals who are willing to serve their club as president,” expressed Dick Kopplin, partner in KK & W with Kurt Kuebler and Tom Wallace. 20

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“Our travels allow us to meet with dozens of club presidents every year and we’re always impressed with their level of commitment to the betterment of their clubs. That’s why we are so happy to assist BoardRoom in honoring these unpaid volunteers who give so much of their time to improving the governance and management at the clubs they love, “ intoned Kopplin. “We are pleased to see the recognition of Keith Berk as BoardRoom’s Distinguished Club President of the Year because he embodies so many of the qualities we see in outstanding club presidents. He is someone who listens to his fellow board members and just as importantly to the club members. “Additionally, he is continually interested in improving the club by working with his management team to enhance every department in the club. No question, Keith Berk has demonstrated the quintessential characteristics you would hope for in an outstanding club president,” explained Kopplin. Keith demonstrated great leadership while guiding our club through structural change. His vision and wisdom carried influence as we overcame challenges and obstacles. Keith’s calm and thoughtful manner were present at all times throughout his presidency.” – David Bercu, board member Change is a long story at Northmoor, a club that had operated successfully under a decentralized management structure for 98 years. “Our general manager, in charge of our clubhouse operations, reported to the board. Our head golf professional, grounds and greens superintendent, head tennis pro, head platform tennis pro and several other of our managers reported to board members who chaired committees, not to a general manager. This structure was well engrained at Northmoor,” Berk explained. However, that was about to change as the club, in 2015, with its own search committee, embarked on a search for

an assistant clubhouse manager. The position was filled but it quickly became apparent that the club didn’t have the right structure to create a successful experience. So, back to the drawing board. Berk, after discussions with Kopplin Kuebler & Wallace became convinced that the clubs’ decentralized management was “no longer optimal.” Because of the size of the club and the specific management challenges, he began to realize that it was time to change the governance model. “The challenges to change it, however, were great,” Berk expressed. “First, our general manager, at the time, had been struggling to build a clubhouse management team and did not have the experience to take on a broader job of general manager/COO of all operations. We would have to hire a new general manager/COO. “Secondly, I would have to gain support of my executive committee, then our board and ultimately our membership. And, most importantly, we would have to do all of this without alienating and possibly losing our department heads and key managers,” Berk cautioned. Berk went to work, first educating the executive committee on the merits of the GM/COO concept and then discussing these ideas with the entire board. After getting the buy-in from the board he advocated the benefits of this management model to the entire membership. Berk recognized that a key part of the success in converting to a true GM concept would be to get “buy-in” from the senior management team. He participated in discussions with the key department heads to explain why it was time for the change. “Northmoor enjoys a unique culture where our board members like and respect each other and our membership has confidence and trust in the board. When presented with well thought-out positions supported by industry data, the changes we suggested were accepted with less controversy than I expected,” Berk added. Berk also knew success would be subject to finding the right individual to lead the club through this transition and he found that person in general manager David Derfel, whom the club hired in December 2016. Keith worked closely with GM Derfel and the management team through the entire transition process. “The changes to Northmoor are significant,” Berk intoned. “They are in part because of our new structure and in part because of all that David has brought to Northmoor. “Under our David’s leadership, we began the process of transitioning Northmoor from a series of well-run silos to a club with professional management, a centralized vision and a coordinated management team. David has focused on building a high quality sustainable staff in an environment that is highly seasonal. “As the GM, David has helped guide me to focus our board on strategic issues rather than running the club’s 22

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day-to-day operations. One example is a bylaw change that directs member concerns about everyday service issues to David, rather than the historic practice of contacting one of the board members,” Berk continued. The Distinguished Club President feels the general manager/COO structure also will benefit Northmoor in the future in numerous ways, including: • Weekly management meetings that allow for a coordinated and more consistent service offering throughout the club. • Better efficiency in using all club resources to meet seasonal needs and peak needs. • More centralized purchasing • Allowing the board to focus on strategy not operations, and • More opportunities throughout the club for employees to grow their careers. ADDITIONAL ACHIEVEMENTS

“It’s all about the member experience,” signifies the theme of Keith Berk’s presidency, and this is given consideration for every action the club’s board takes. “Hiring David Derfel as our GM/COO remains the most significant achievement of my presidency and the most meaningful to Northmoor now and for the future,” Berk expressed. Additional achievements that mark Keith Berk’s tenure as Northmoor Country Club president, include: • Amending and restating Northmoor’s bylaws to modernize many antiquated aspects. This included allowing up to two spousal members on the board, eliminating two board positions and replacing them with a historian chair and a philanthropic chair, streamlining the club’s communications and lead times by implementing email communications, and simplifying and making more fair the club’s disciplinary process • Converting the club’s member billing and most other communications to email • Converting member payments to ACH • Converting holiday bonuses for key department heads and key managers to a performance-based bonus plan • Initiating the club’s first-ever board strategic planning meeting • Achieving 95 percent member approval for a special assessment for new golf course bunkers, and • Revised senior dues to accommodate aging member demographics. As Keith’s vice president, I have worked side by side with him. Keith ran concise and focused meetings resulting in significant and much-needed changes to our bylaws and management structure. Fiscal responsibility also has been central to all decisions. ‘It’s all about member experience’ is the new mantra of our board leadership, thanks to Keith Berk. – Doug Adler, board member

➤

First Generation Member Named BoardRoom’s Distinguished Club President Keith Berk, BoardRoom magazine’s Distinguished Club President for 2017, had no earlier experience or involvement with country clubs until joining Northmoor Country Club in 2001. But these days, he’s right in the thick of it. When Keith joined Northmoor he knew several members but his closest friends were not members of country clubs. Shortly afterward, Keith sponsored his brother for membership. Today, Keith’s closest friends are members of Northmoor whom he travels with for golf and other adventures. During this past year, through the marriage of Keith’s nephew’s (his brother’s son) to the daughter of a Northmoor member, Keith is now related to a lot of Northmoor members! Keith and Janna, his wife of more than 33 years, have three children – Joey who will be pursuing a master’s degree in industrial and organizational psychology in the fall at Northwestern University, David, an associate at a private equity

firm in New York and Annie, an analyst at the private bank of JP Morgan in New York. Berk, a senior partner at the Chicago law firm Horwood, Marcus & Berk Chartered, joined the firm in 1985 and has grown the firm from five attorneys to 55 attorneys and more than 100 employees. Keith is a commercial lawyer specializing in mergers and acquisitions, and counselling larger sized middle market businesses on entity structures and organizational incentives for growth and equity appreciation. Keith has been a member of the Young Presidents Organization (YPO Gold-Chicago) since 1995 and is a member of Mizner Country Club in Delray Beach Florida since 2009. BR

from cover story | 22

“No longer does the board feel obligated to micromanage department heads, and I think there’s a sense of relief that ‘GM David’ will handle ‘those things’ so the board can focus on ensuring Northmoor remains relevant in future years. “Keith brings a level of respect, wisdom, and positive energy to the boardroom that sets the tone for highly productive meetings. Healthy debate is encouraged, and Keith makes sure that everyone’s opinion is heard,” Derfel added. “He’s always quick to remind everyone that decisions the board makes should be founded on their merit to benefit the greater good of the entire membership and never a particular constituency. Keith established a true forum for open and honest expression that always focused on ‘it’s all about the member experience.’ “Change doesn’t come easy and being tasked with the challenge to become the first GM/COO in the almost 100year history of Northmoor has its fair share of ups and downs,” Derfel expressed. “But Keith Berk has been a pillar of support and an extraordinary collaborator in this first year of transition. His leadership and ability to affect positive change is inspiring and has provided me with the confidence and conviction that we are moving in the right direction.” All reasons why Keith Berk, president of Northmoor Country Club, stands as BoardRoom magazine’s Distinguished Club President for 2017. BR

Keith exemplifies the word ‘leadership.’ He sets out the objectives, encourages discussion, builds a consensus, and delivers a solution & action plan. Keith accomplished a tremendous amount during his tenure as president and his prior service as an officer and director. The club has been lucky to have Keith Berk as its president, and it’s been an honor to serve alongside him.” - Bill Lewin, board member and former president Keith is a good listener and asks great questions. He has a unique ability to get to the root of issues and focus on solutions. - Rob Razowsky, board member MICROMANAGEMENT BE GONE!

In general manager Derfel’s mind, President Berk’s participation in the CMAA’s pre-conference workshop, Executive Leadership at a Higher Level, presented by KK & W, reinforced his belief and commitment that the club’s board needed a ‘thought partner’ who handles the club’s day-today operations while allowing the board to focus on ‘big picture’ strategic issues. “Northmoor Country Club in 2017 held its first ever board retreat to begin the process of developing core values that define the culture and decision-making process, a mission statement and a vision statement,” explained GM Derfel, referring to change inspired by the club’s shift in its governance model. 24

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2017 Top Private Club Presidents of the Year Private club board presidents play a huge role in the professional operations of their club as volunteers working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. BoardRoom magazine’s 21 most outstanding private club presidents for 2017, including the selection of Keith Berk of Northmoor Country Club as the Distinguished Club president for 2017, exemplifies the focus on the leadership responsibilities, the accountability and the management of the board, while providing a healthy respect for the club’s macromanagement. These board presidents, chosen from clubs in the United States, South Africa and New Zealand, understand the importance of working, effectively and efficiently, with their volunteer boards 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. Systems alone 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 outstanding private club board presidents for 2017. Keith Berk . . . . . . . . . . . . . . . . . . . . . . .Northmoor Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Jeffrey Benton . . . . . . . . . . . . . . . . . . River Bend Golf and Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Tom Brunts . . . . . . . . . . . . . . . . . . . . . .Country Club At Castle Pines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Cleve Christophe . . . . . . . . . . . . . . . . .Thornblade Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Rocco Diina . . . . . . . . . . . . . . . . . . . . . .The Buffalo Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Lou DiLorenzo . . . . . . . . . . . . . . . . . . . Interlachen Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Ken Donovan . . . . . . . . . . . . . . . . . . . . Fiddler's Elbow Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Garth Elliott . . . . . . . . . . . . . . . . . . . . Randpark Golf Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa Doug Green . . . . . . . . . . . . . . . . . . . . . The Polo Club of Boca Raton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Grant Hendricks . . . . . . . . . . . . . . . . .Southward Ho Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Steve Irwin . . . . . . . . . . . . . . . . . . . . . . St. Andrews Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Ray Kayne . . . . . . . . . . . . . . . . . . . . . .Tara Iti Golf Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New Zealand George Lantz . . . . . . . . . . . . . . . . . . . . Glenmoor Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA John Lyngaas . . . . . . . . . . . . . . . . . . . . Grey Oaks Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Frank Maddalena . . . . . . . . . . . . . . . . Boca Grove Golf and Tennis Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Ian Murdoch . . . . . . . . . . . . . . . . . . . .Bryanston Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa Michael Neglia . . . . . . . . . . . . . . . . . . .Upper Montclair Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Jack Peat . . . . . . . . . . . . . . . . . . . . . . . .The Club at Morningside . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Mark Sabine . . . . . . . . . . . . . . . . . . . . .Mission Viejo Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA Judith Stant . . . . . . . . . . . . . . . . . . . . . Collier’s Reserve Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .USA Joseph J. Thomas . . . . . . . . . . . . . . . . Belle Haven Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA TOP PRIVATE CLUB PRESIDENTS SPONSORS

BOARDROOM | JANUARY/FEBRUARY 2018

JOE ABELY

DAVE DUVAL

EXECUTIVE COMMITTEE

The Impact of Debt on Clubs’ Strategic Plans For many private clubs to attract new and younger members, the number and quality of offerings need to go beyond the golf course and focus on amenities and activities that are attractive to the entire family. Many private clubs undertake a strategic planning process to determine what their club’s needs are, to stay relevant and vibrant in the future. Many of these clubs engage consultants to assist them in developing a strategic plan. Such a process typically includes focus groups, membership surveys, SWOT and market analyses, and defining the club’s mission and values. The process generally takes several months and absorbs a significant amount of time from management, board and committee members and participating members. Done properly, the strategic plan identifies the future amenities (both new and improved) that the club needs to thrive in the future, with the related costs to implement over several years and administrations. To be long-lasting, it also needs the support of the membership. An issue for many private clubs is that after all the time, effort and cost of developing a strategic plan, implementation stalls and the document sits on the general manager’s shelf. Why is that? • The strategic plan does not adequately address the long-term financial sustainability of the club • While the strategic plan provides an estimate of the cost of implementation, many times the costs do not line up with the club’s ability to afford the component costs or simultaneously accommodate the club’s ongoing capital needs • The board reverts to funding a project rather than the plan, leaving inadequate resources available for continued implementation of the plan • The club has not allocated sufficient resources to develop specific plans and cost estimates to implement the recommendations • The inevitable turnover of club boards and officers presents the risk that new board members and officers (particularly a new club president) are not invested in the plan and pursue different agendas • The private club uses a consultant with little practical experience in planning for and governing clubs

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• There is turnover at the club management level depriving the club of the historical knowledge underlying the plan • The club’s leadership is not committed to executing the plan and/or has not garnered the support of the membership • Lastly, the club debt structure leaves little room for additional capital investment and/or the debt proposed is unrealistic. We are observing that many clubs take on too much debt, with repayment terms that are too long, without considering all of the club’s capital expenditure needs over the debt term, not to mention the funding of a strategic plan. While a club with existing debt may be able to finance a portion of the implementation of a strategic plan, clubs with too much debt may well not be able to complete implementing the rest of their strategic plan. Without a long-term strategy to fund a complete plan, the result can be limited maneuverability of a club in rapidly evolving markets, which can have devastating consequences in the future. What is the right amount of funded debt (including capital leases) and the proper term? We generally start with total debt not exceeding total annual dues and repayment terms not exceeding 10 years for clubs with a stable membership base and a funded long term financial plan. That amount can increase for any debt that is specifically funded through membership assessments. Longer amortization periods for debt repayment (or refinancing existing debt over a longer term) will greatly limit the options available to the club and future administrations. There’s a lot of analysis and math behind our starting points that we share with our clients as we fine-tune recommendations for them. It is easy for boards to get caught up in fancy plans without fully understanding the math behind a long-term plan. That’s to be avoided. BR Joe Abely and Dave Duval are co-founders and principals of Club Board Professionals LLC. Joe can be reached at (781) 953-9333 or via email at jabely@cbpros.com ; Dave at (617) 519-6281 or dduval@cbpros.com

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

Club Culture

The Economic Impact The culture of any club is critical to its success. Assume that you’re a member or in management of a private golf or country club. You’re probably a member in good standing, being up to date on all dues, fees and assessments. Do you consider yourself an owner of that club, or just a customer? Think of your fellow members at this club: Do they act like customers or owners? In consulting with private clubs all over the U.S. for more than 30 years, I’m convinced there are two kinds of clubs: those with owners and those with customers. Though many clubs are member owned, even those members often act like customers. Let me give you an example: The golf course at private, residential club is now 30 years old and needs a major facelift — not just a redesign but better drainage, bunkers that actually drain after a rain event, a proper practice facility, and maybe a new banquet facility. If that club can’t gain majority approval for this renovation project, or it passes but the required assessment results in significant member exodus, that could be a club with too many customers and not enough owners. For long-term success, clubs need to be both populated and led by “owners.” One term I’ve seen used, quite appropriately, in my view, is “stewardship.” Club stewardship is the province of member/owners who are committed to passing on a stable, healthy and viable club to the next generation. This is more than a mere thought experiment for private clubs today, especially those with real estate components. Proper stewardship means effective planning – addressing the lifespan of club assets in addition to the golf course, such as roofing, HVAC systems, swimming pools, racquet sports facilities and fitness facilities. If these deteriorate, the club deteriorates, followed just as surely by surrounding home values. Proper stewardship and planning protect everyone’s investment and perpetuate the future of the club. Planning for the inevitable (and normal) wear and tear is something investor-owners handle as a matter of course. Think of the way you maintain your own home.

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In the short term, it’s as simple as a club establishing a reserve sinking fund as part of the budget each year. This means setting aside actual cash to fund the replacement of various short-lived items. The problem is that most member-owned clubs with tight budgets often eliminate these sinking fund/reserves in order to balance the budget. It’s often the easiest way for boards to make ends meet without raising dues, implementing assessments or increasing usage fees – things that members (customers) hate! Unfortunately, it’s also the fastest way to dig a hole that a club may never climb out of. That sinking fund is hugely important and it’s never too late to start one. Though it may not reverse past neglect, establishing a reserve NOW at least cushions the impact when reinvestment in the club is no longer a matter of choice. Maybe it’s the golf course. Maybe the club depends on function revenue and the ballrooms/kitchen facilities need to be updated. There will come a time when that reinvestment must be done – owners plan for such things, while customers often just leave for greener pastures or leave it to the next generation as the club declines. Good master planning also requires a club commitment to find independent, professional assistance in the areas of golf course design, clubhouse design and third-party market/financial/operational consultation. But good master planning requires something else: members who think and act like owners. Members who think and act like customers cannot and will not plan for the future. The next time you’re frustrated by the way things are going at your club, think first about the club’s culture. Club cultures can and do change. Indeed, a good assessment often weeds out the customers, leaving behind a core of stewards to do what has to be done. BR

CMAA CONFERENCE & EXPO visit www.cmaa.org for more information on these sessions. Saturday, March 3rd

• Married to Clubdom @ 10:15 a.m. • Ted Talks on Careers @ 2:15 p.m.

Sunday, March 4th

Monday, March 5th

• Employment Agreements for Mid to High Level Managers: Part 1 @ 1:15 p.m. • Employment Agreements for Mid to High Level Managers: Part 2 @ 2:30 p.m.

• Forecasting the Club of the Future, moderated by Tom Wallace @ 3:30 p.m.

Stop by our booth, 1445, at the cMaa expo and meet the team!

Sam Lindsley Joins the Firm

Sam was the Chief Operating Officer of Michael Symon Restaurants (MSR), a growing Cleveland restaurant company with 7 distinct concepts, 18 restaurants and annual sales over $35 million. While Sam was with MSR, he constructed all Standard Operating Procedures for the company and instituted best practices to ensure proper accountability and created a world-class service culture. He is a leader and bottom line producer whose strength lies in the fact that he understands that the backbone of any successful food & beverage operation is not only the systems put in place to control costs, but the ability to foster a culture of genuine hospitality. “We are in the hospitality business and we love it, but we run our business as a business,” Sam Lindsley.

Sam is on the Board of Directors of The Ohio Restaurant Association and is the association Vice-Chairman. He also serves on the Advisory Board for Destination Cleveland (CVB), is a member of the Court of Master Sommeliers, and is a Certiﬁed Sommelier.

dick kopplin

kurt kuebler

toM wallace

liSa carroll

len SiMard

jack Sullivan

arMen Suny

SPECIALIZING IN GENERAL MANAGER/COO, DIRECTOR OF GOLF, GOLF COURSE SUPERINTENDENT, EXECUTIVE CHEF, RACQUET SPORTS PROFESSIONAL, COMMUNITY ASSOCIATION MANAGER, ASSISTANT GENERAL MANAGER, CLUBHOUSE MANAGER/ FOOD & BEVERAGE DIRECTOR AND FITNESS DIRECTOR SEARCHES, AS WELL AS STRATEGIC PLANNING AND CONSULTING SERVICES FOR PRIVATE, RESORT AND DEVELOPER-OWNED PROPERTIES.

a t l a n ta

cleveland

w w w. k k a n d w . c o M

denver

jupiter

chef to chef confe r e nce Seattle | March 4 - 6 , 2 0 1 8

napleS

S c ot t S d a l e

EXECUTIVE SEARCH FIRM OF THE YEAR 11TH YEAR IN A ROW

WHiTneY reid PenneLL

executive committee

Whitney Reid Pennell, president of RCS Hospitality Group, formerly Reid Consulting Services (RCS) is a celebrated management consultant, educator, and speaker. For more information, phone (623) 322-0773; or visit the RCS website at www.consultingRCS.com

Change Your Thinking for True Transformation it seems that everyone in the club business is looking for the “new” silver-bullet solution to the challenges our industry is facing – a new business model, new technology, new organizational structure, new “fill in the blank.”

And yet…it doesn’t always work. Why? Because very often, the “new” is ushered in with the same old thinking and methods. How can you implement new ideas with the same thinking you’ve always had? To achieve a true transformation, it’s not just the business model or organizational structure that must change, but also the mental model behind it and an effective measurement model. Consider the differences between Southwest Airlines and other traditional airlines. Southwest co-founder Herb Kelleher’s mental model is, “We’re in the service business; it’s incidental that we fly airplanes.” Their entire strategy is based upon it.

about adopting a model from another industry hoping to implement the same successful ‘widget management’ techniques to save money. Except, the dynamic of private club members as owners and employers at an equity club makes everything about the business model different. Therefore, trying to emulate another company’s model without also adopting similar mental motivations, service culture, and quality/satisfaction measurements will produce dissimilar results. They are all necessary for the strategy to succeed. Every club trend indicates that we can increase memberships through fun and engaging programming, exciting social ideas and updated food and beverage operations, family-welcoming amenities, and providing personalized service while adapting attitudes to fit the members’ lifestyle. Many are surprised that when they then change their club calendar, offer a new menu, or build a new clubhouse

It is crucial that we as an industry unlearn old habits and embrace the changing landscape of the club business and evolution of private club members’ needs, so we can thrive, attracting new talent to the industry and new members to the clubs we serve. Norman Vincent Peele says, “Change your thoughts and you change your world.” There’s truth in that. Only if we can change and align our business, mental, and measurement models can we experience a true transformation. Other airlines have the mental model of “We fly airplanes that carry people.” This difference in approach is evidenced in their actions, which ultimately lead to their overall success or failure. Remember Ted by United, or Song by Delta? Those airlines tried to copy Southwest’s business model without bringing over the same mental model, and they failed. Imagine working on a club strategic plan or updating your capital project priorities. Did you discuss the mental model behind your competition’s business model and how they measure success? Maybe you’ve had discussions

with tons of attractive features, they still struggle to retain and attract members. Why? Because their mental model is often stuck in the past: no denim, no cell phones, no music on the course, limited spouse and family play on weekends, restricted junior golfers’ use of the range, a neglected pool, fitness centers (if they exist) as lifeless rooms, an outdated website, and so on. Their dated mental models keep them from truly achieving the transformation they seek and attracting the members they so badly desire. see execuTive commiTTee | 112

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executive committee

ronALd F. cicHY

PHiLiP L. ZeLLer

Dr. Ronald F. Cichy, O.M., professor, The School of Hospitality Business, Michigan State University

Philip L. Zeller, owner, Dale Carnegie Training by Ralph Nichols Group, Inc.

Appreciation > < Engagement Look around. Who do you know that is truly really appreciated? When is the last time someone came up to you and said, “Wow, everyone is so appreciative of the value that you bring to the club!” For many people, it is tough to recall that time when they had enough appreciation. It’s equally challenging for others to even describe a time when this was the case. Why? Dale Carnegie, often referred to as the father of the self-help movement, documented a simple yet profound observation of people: “People crave appreciation as much as food and water.” Process that for a moment. People crave appreciation. Yes, sign us up for that, just do not sugar coat it or flatter us. Give us honest and sincere appreciation and you will see many positive actions as a result. Appreciation is like adding oil to an engine. It makes the automobile run smoothly. Without the oil (appreciation), the engine ceases up and will not run. If you want your team members to engage at higher levels, you must take the time to give honest and sincere appreciation. Your member satisfaction is directly affected. Your financials are also affected. Note this: it is the evidence that gives the appreciation validity. Without evidence, people probably will not believe it! Imagine hearing this: “You are (insert appreciation trait, characteristic, or action) as evidenced by how you handled that situation (be specific) and we appreciate that quality in you.” Now, how do you feel?

Your value 1 = not me

3 = sometimes me

1. each improvement I praise.

_______

2. never criticize, condemn, or complain.

_______

3. Get the others saying “yes, yes.”

_______

4. Arouse in others eager wants.

_______

5. Give honest and sincere appreciation.

_______

6. end each conversation with a “THANK YOU.”

_______

Your Total:

_______

Total Possible: 36

5 = usually me

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Understand that consistent appreciation leads to trust and trust leads to engagement. Your engaged people (i.e., TALENT) are the ones who create the positive memories for your members and, magically, it becomes part of who they are without having to be asked. In a sense, the appreciation is anticipatory as it is part of the club’s culture, as practiced by the people. Organizations with engaged (TALENT), “enjoy 2.5 times more revenue than competitors”, is a number sometimes quoted. And “businesses with engaged (TALENT) outperform those which lack this quality.” And here’s a third finding: “When examined for productivity, those (TALENT) in the top one percent in terms of productivity in an organization add about $5,000 to profits each year. Where are you on engagement and appreciation in your club? Let us start with you, as a member of the board. Try the E.N.G.A.G.E. assessment on this page. Then choose some actions to improve at a defined time in the future. You will influence yourself and others in honest ways. It is time to fill the craving! Praise the people (volunteer and paid), praise them when they are doing good and let them know how they are preforming. Just as success breeds success, consistent appreciation builds trust. In return, members enjoy the results. Appreciation. How do you feel when you get it? How does it feel when you show genuine appreciation to another? By the way, this can also be applied to member retention. E.N.G.A.G.E. BR

JANUARY/FEBRUARY 2018 | BOARDROOM

FrAnk vAin

executive committee

Frank Vain is president of McMahon Group, a private club survey, strategic and long-range planning consulting firm based in St. Louis, Missouri. He can be reached at fvain@mcmahongroup.com

Opportunity Knocks As the old saying goes, challenges are opportunities in guise.

dis-

While many prognosticators continue to portray the club industry as severely challenged, it faces nearly unprecedented opportunities. The economic malaise brought on by the Great Recession is over. The equity markets are at all-time highs and the unemployment rate is around four percent in most parts of the country. Interest rates and gas prices are low. The financial system is awash in cash and the folks in D.C. are working on tax cuts. These and other factors have pushed consumer confidence to record levels. The stars are lining up from a demographic perspective also. Over the course of the next decade, some 80 million Millennials will move into what has long been the prime joining years for most clubs, ages 35 to 45. This will produce more well-suited candidates for membership than at any time since the Baby Boomers crossed those lines back in the 1980s. Don’t write off those Boomers just yet either. About half of them are still in their mid to late-50s, making them great candidates for membership at second home communities in the Sunbelt or city clubs as some portion of them downsize to the urban core. There is also a much higher level of receptivity to change within clubs than ever before. Long on tradition and often stymied by inertia, most troubled clubs became that way because of the resistance to change that builds up among memberships. Those days are also gone. Anyone that has been paying attention is no longer surprised when their club’s board recommends a new and different course. In fact, many memberships we encounter are well ahead of their boards and ready to act on opportunities that improve the club. If your club has yet to partake in this party, what’s stopping it? You’ll first want to check your offer. As in all businesses, the first rule of successful marketing is to have something great to sell. If your club has yet to respond to the trends sweeping the country, it is time to make it happen. Readers of The BoardRoom know well that means embracing today’s casual lifestyle, giving a broad set of fea-

BOARDROOM | JANUARY/FEBRUARY 2018

tures and benefits in your membership experience, becoming family-focused and offering new and innovative programs. It is vital to adopt technological innovations that let you communicate more effectively and better serve your members. Create spaces in the club when electronic devices are welcome. Continually identify and roll out initiatives that build community, the ultimate reason why anyone chooses to join a club. One of the key barriers between those clubs stuck on the challenge side of the ledger and the opportunists is their ability to raise capital to reinvent their facilities. Your physical facilities need to be up to date so you can deliver the experiences and programs members want and need. Your plans must include ample amounts of funding for annual capital repairs and maintenance and, periodically, funding for improvements to grow your club. Tap all the sources that might make sense for your club. With all the money out there, members are as willing as ever to pay a reasonable assessment or increase their monthly payment, so the club can take advantage of this unbelievable lending environment. If these traditional routes fall short, innovate. If you have excess land, consider selling it. Better yet, find a developer who will build nice homes on it and package it with a club membership. Or take up the offer from those wealthy members who continually express a willingness to help, either through gifts or their ability to supplant the banks as your lender. It’s all happening and it’s working. Who knows how long these good times will last? The economic cycle has not been repealed. What we know from earlier downturns is that the clubs with the strongest membership and best offerings fared well and the laggards fell farther behind. Club boards should be using this period of economic expansion to develop and bring forward a sustainable vision for the future. The opportunity is there. BR

Addison crAiG

GoLF committee

Addison Craig, a Millennial, is the owner of ADDGOLF LLC, a golf instruction business. Addison works as a golf professional at La Gorce Country Club at Miami Beach, FL and works as a golf professional at The Bridge Golf Club at Bridgehampton, NY. He can be reached via email: Addison@Addgolf.com

How to Create a Great Golf Instruction Experience Especially for Millennials

millennials have been called naïve and narcissistic, self-absorbed and entitled, civic-minded, and even the best-educated generation ever. considering there are more than 80 million of them in the united states, generalizations can be, well, very general. This huge population, born roughly between 1980 and 2000, are now in the position to start taking golf lessons. According to the Boston Consulting Group, these 17 – 37-year old individuals have a spending power of $1.3 trillion in annual buying power. Your ability to create an amazing golf experience will determine if you can attract, and keep, their interest. Here are some of the things you should consider doing to meet their needs. Millennials like authenticity especially before committing to any experience. For example, I’m not going to book a hotel on Expedia if it’s under four stars. Once I find the right hotel that suits my eye, for a reasonable price and good reviews I will commit to the transaction and expect a certain standard for that experience. The important point is that I do my research and feedback matters, just like many of my peers. Millennials also want regular feedback, whether weekly or monthly, and often preferably face-to-face despite their expertise with technology. Your ability to create extraordinary memories and build open and honest relationships is what will set you apart. Millennials like men and women who have strong ethics and beliefs. They want and look for the truth. Gaining the trust of an individual is less likely to happen than people believe. Find great ways to interact with your students, because that is what will set you apart. Millennials want their opinions to matter and they want to be heard. It’s extremely important to make your instruction fun, simple, and effective. It’s important to keep reaching out to Millennials to create personal and performance goals throughout each season. They want to see results, but more importantly they want to see that you actually care. Think outside the box. With golf instruction, you need to find different ways to bring people together and engage in conversations. Ever wonder how Millennial students feel about a certain subject? Don’t just wonder. Ask. Encourage them to talk about their concerns and ideas.

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Put systems in place where they can openly voice opinions. Also, be aware of your non-verbal communication in responding. As a golf professional, stay on top of what’s going on in the field and use stories to teach. Getting a chance to work more and more with Millennials will help you gain their trust as you build your awareness of what works and what doesn’t. It’s all about making sure that when you are on the lesson tee you have a game plan that is uniquely designed to meet the needs of those you are instructing. It is not a one-size-fits all approach that works. Aside from the face-to-face interaction, it is important that you give a lot of attention to the teaching area. When a student walks up, what do they see? Does it look professional? re you using technology and training aids in your teaching? Is the area safe and free from unnecessary distractions? Do you have systems in place to create a friendly and welcoming environment? Since many Millennials are now entering in leadership positions, golf is a great sport to learn as a lot of business is conducted on a golf course. Why not share that information during a lesson to encourage your students to keep at it? Millennials are a highly educated, talented group of individuals with a hunger for self-improvement. A majority prefer fulltime employment to freelance work. They think business is having a positive impact on the wider society. All this is great news especially for golf instruction, so go out there and go above and beyond, and make your facility a five-star experience! BR

Tom neiLL

histoRy committee

Tom Neill is president of Private Club Historical (www.ClubHistorical.com). 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.

Historical Investigation Waiting Just Below the Surface

“most of us spend too much time on the last twenty-four hours and too little on the last six thousand years.” – Will durant or “While the dangers of ignoring history are considerably less existential in the world of golf and country clubs, it is still a great mistake for owners, managers and club members not to avail themselves of it.” In a world where ever-evolving technology allows the “here and now” to be presented to us quite literally – here and now, it becomes sadly easy for man to lose sight of his past – or, all too frequently, to forget about it altogether. On the larger stages of international relations, economics and all manner of other human events, the dangers of such shortsightedness are obvious. While the dangers of ignoring history are considerably less existential in the world of golf and country clubs, it is still a great mistake for owners, managers and club members not to avail themselves of it, for the history of the game and its many-splendored venues is a rich and vibrant one indeed. In a manner, far more relevant to the game as we know it, golf’s story on American shores dates to the latter two decades of the 19th century and is quite well documented. In fact, several clubs which remain among the nation’s most prominent today, played critical roles in that initial development.

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From both a marketing and ambience perspective, an exploration of a club’s own special place within the game’s past can prove highly fruitful, often uncovering long-forgotten nuggets that can be used very effectively in today’s competitive marketplace. In many cases, such historical moments have come in the form of high-level tournament play, because the game’s competitive history includes today’s professional and amateur Major championships, as well as the PGA and LPGA Tours. However, it also encompasses all manner of long-forgotten professional and amateur events, many boasting legendary champions and storylines. Also worthy of historical investigation, especially at older clubs, may be a long-ago visit from a famous

player or two in the form of an exhibition, visits by famous athletes and celebrities for recreational play; involvement in the design and construction of the golf course by a time-honored architect or, looking internally, the presence of famous people of yesteryear among a club’s membership. One example is Los Angeles’ famed Riviera Country Club, one of golf’s iconic venues and a club whose history draws extensively from every category. Having hosted a U.S. Open, two PGA Championships, a U.S. Amateur and a U.S. Senior Open in addition to serving as the annual site of the PGA Tour’s Genesis Open, Riviera boasts a museum’s worth of Hall-of-Fame champions, in addition to a timeless association with Ben Hogan, who famously won thrice there over an 18-month span in 1947-48.

Our work for Riviera began by covering the obvious, creating a wide range of colorful historical displays throughout the clubhouse highlighting many of these epic events and their champions. But even as well-documented a facility as it is, the Riviera had some unknown stories left to tell. Researching in conjunction with Riviera General Manager Don Emery, has unearthed a range of new materials on the club’s past. These are presented in displays promoting Riviera’s hosting of equestrian events during the 1932 Olympics, the original blueprints of the palatial clubhouse, previously unknown contributions made to the club by member Walt Disney and a variety of other subjects. Thus, while research into a club’s history may do little to prevent wars from starting, it can absolutely provide a club not just with a greater sense of self, but also with valuable tools to help market and retain both members and, where applicable, outside events. In so many cases, the history has long been there, just below the surface, waiting to be discovered. And a little digging can go a long, long way. BR

JANUARY/FEBRUARY 2018 | BOARDROOM

kevin F. reiLLY

cLuB Facts & FiGuRes

Kevin F. Reilly, an attorney and CPA, has been involved in the hospitality area and clubs in particular, for more than 30 years. He is a member of the firm of PBMares, LLP. Mr. Reilly is located in the Fairfax, VA office. He may be reached at (703) 385-8809 or by email at kreilly@pbmares.com.

The Club Budget The Process is Critical

never base your budget requests on realistic assumptions, as this could lead to a decrease in your funding. - scott Adams, dilbert The budget is not just a collection of numbers, but an expression of our values and aspirations. -Jacob Lew A budget is telling your money where to go instead of wondering where it went. - dave ramsey

In the recent past, clubs have been forced to cut spending back because of a decline in membership and in spending by the members that remained. However, while membership desires may have been postponed they were not eliminated. The members want a new swimming pool, the grill needs some new furniture, the golf course needs a new irrigation system, the tennis courts need to be resurfaced and by the way, the club down the street is making these improvements. In addition, costs continue to escalate and while wages have been under control, the lowering of the unemployment rate and the new minimum wage in many parts of the country, as well as other employee costs skyrocketing, have added additional stress on the club’s operations. Where does the money come from to address the short and long-term, as well as the capital and operational needs of a club? Too often, members will forget that a club has a business, as well as a social side to its operations. Generally, expenses are under control but revenue per member while improving, is still below its peak. Clubs must learn to manage members’ expectations. What many members may forget is that ultimately, no matter how funded, they end up paying for the club and its operations. While the federal government cannot pass a realistic budget, it can still spend money. A club does not have the option of spending more than it takes in, at least over the long haul. The financial health of the club cannot be ensured without a detailed knowledge of the costs and revenues involved. The financial software that is prevalent in the industry can provide more detailed information than ever before (and maybe more than we want). Information overload is a real possibility but in today’s

environment, it is critical to have and use the tools available. The establishment and use of a budget is one tool to assist management. An effective budget process is critical to projecting and monitoring operations. It’s as necessary to a club as it is to a Fortune 500 company. For many, it can mean the difference between financial stability and failure. No one budget process is right for every club, but the process should be structured to meet the needs of the club. However, some general rules apply. Effective planning requires both a long and a short-term outlook. Finding cash for the next payroll is as critical as financing the next renovation. Long term planning entails setting the club objectives and is part of an overall strategic plan. Short term planning involves cash flow and ensuring revenue is sufficient to operate the club on a daily basis at a level the members want and for which they are willing to pay. This is not always the same thing. Most, if not all clubs, have a budgeting process. However, it is important to review the established procedures to ensure that the needs of the club are still being met. A process established even last year, never mind 10 years ago, may need to be changed. While it is important to compare budgets from year to year, it is more important to realize that the budget is only a tool to more efficiently operate the club. A club frequently will have many more people involved in the budget process than will a regular business, however, to be effective, the group must be as small as possible. The board of directors, finance committee, (budget subcommittee), the department heads, and the general manager should be involved. The budget is a reflection of the business and operational plan. As such, while the members (through the board) should give the direction of the budget, the operational input should come from professional management. The controller and the club manager, who are ultimately responsible for coordinating the process, assist the budget committee. Teamwork is essential. Department heads must take see cLub FAcTs And FiGures | 112

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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 What You Do And What Your Job Is

We all see the world through a different set of filtered glasses. When meeting new people in a social environment, after just a few moments of obligatory personal pleasantries, and looking at them up and down, it is inevitable that our minds quickly try to “size up” the person in front of us. (Don’t take it personally — they are doing the same thing to you!) It’s now only a matter seconds before one of you will inevitably ask what both of you really want to know of the other. And, because we all see the world through our own unique set of filtered glasses, the answers offered to that question will prove pivotal as to how each views the other from that point on. The answer instantly transforms what may have been only a polite exchange of small talk while glancing around the room into some real eye contact as their story comes out. What is that pivotal question? We all ask it of others and we all get it asked of us. Here it comes: “What do you do?” Well, “What exactly is it that you do?” On the surface, it seems like such a simple question that could be simply answered, “Well, I get up, brush my teeth, have a cup of coffee, check a few emails etc. But, we all know the question goes deeper than that. What is really being asked is what your job is. That, too, seems like such a simple question that could be answered with little explanation. Just say the words “I am ____” and then fill in the blank with a noun (… a CPA … a chef … an astronaut … an editor … a banker … an attorney … a pastor or, even a general manager or board member at a private club!) When the question, “What do you do?” is responded to by offering an occupation or position title, the question itself has really not been answered at all. The word “do” is a verb, Thus, a proper response would describe activity. Executives need to clarify the difference between their job title and what they really should be doing. Regardless of whatever job title or lofty position, what leaders must be doing is: 1) Selecting the right people (talent) and putting them in the right places (positions). 2) Developing, motivating and mentoring them (leadership). 3) Culling the herd when necessary (accountability). That is what you do! This is your job. 46

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Every introspective leader should look closely in a mirror, have some real eye contact and pointedly ask themselves the question, “What do you do?” A meaningful answer would be something along the lines of: “My profession is that of a chief operating officer who knows that my real job is all about hiring the right people and providing great leadership as a positive mentor of a great team. That is my real job. And, that is what I do.” If an executive realizes what their real job is, focuses on that job, and is committed to really making it happen, career success is a highly predictable byproduct of just going about the business of doing the same job every day! This is true regardless of what industry or title may be under your name on your business card. But, let’s get specific at a private club: When looking at their GM/COO, the board of directors forms a viewpoint through their own set of filtered glasses as well! And as they contemplate what they have in their sights, they see right through a title on a business card, letterhead or office door. (All of which they paid for, by the way!) All they see is: 1) How successful is our GM/COO in identifying and retaining top talent? 2) Is this someone with the leadership skills to effectively manage/mentor that talent? 3) Are we, as a board, looking good to the membership and being accountable to them as a direct result of the above? Never forget, we all see the world through a different set of filtered glasses. And, what they see, is what you get! BR

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

peRsonaL deveLopment

High Fives for High Performance Are you striving for a high-performance culture where everyone works at the peak of their possibilities? if so, you have plenty of company. It’s the capstone of corporate culture these days and for good reason. It brings out the best in employees and managers. It addresses the challenges of innovation and change. It creates a company worthy of high-fives all around. It can also be a tall order. The culture of a workplace is more important than ever today. A positive ambiance enhances a company’s ability to hire and retain the most talented individuals. A negative atmosphere can prove costly in productivity and morale. You may be thinking, “So what else is new?” What’s new is a more pronounced emphasis on excellence, on creating an environment in which people contribute to their fullest. It’s a workday setting where leaders and employees relate to each other in positive ways that help them fulfill the organization’s goals. What’s not new is that people spend a great deal of time in the workplace, sometimes as much as a third of their lives. Nor is it new that many don’t get up in the morning excited – even very interested – in the prospect of work. Incentives that used to prod people to greater achievement don’t work as well. Warren Buffett likes to say he “tap dances to work” because he enjoys it so much. How many people describe their work that way? How many in your organization could be happier and more productive? Probably more than you realize. So how can you strike a spark in your workplace? You can bring the tall order down to a manageable magnitude by considering the advice of those who’ve been there: • Begin with a conversation about core values. What are your goals and how do your core values, your ethical principles, reinforce them? Make everyone part of the discussion. It tells employees they are central to the organization’s success. Stressing their part in the effort shows openness and transparency. • Extend the discussion by outlining what you will do to drive continuous growth and innovation, and what they can do. Add that new training will be provided. Study exist-

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ing rules and procedures and eliminate those no longer useful. Explain how progress will be measured. • Encourage employees to ask questions and to make decisions. Be clear you trust them to make good ones. Encourage problem solving. Offer new incentives for ideas that make a positive contribution. To aim for the high performance you want, make them feel like owners. • Develop strong leaders who will inspire people to outperform. Just as empowering employees is important, empowering leaders is crucial. Expect them to use teamwork and to go the extra mile in encouraging employees to achieve excellence. Offer leaders training in the best ways to instill loyalty and trust and show they are valued. • Motivate both leaders and employees to put on their dancing shoes like Warren Buffett does and view their work in positive terms – satisfying, challenging, enjoyable. An upbeat attitude goes a long way toward creating a pleasing environment and reducing stress. • Finally, this should be a no-brainer for managers, but occasionally hum Aretha Franklin singing “Respect.” The R word is essential in a healthy workplace. Recently, Gallup studied 3,477 managers from a variety of companies and found that the best ones create a highperforming culture by clearly defining the roles of employees and clarifying what they expect from them. They build a trusting environment by encouraging employees’ growth and development through mentoring and continuous learning. The study also found that the biggest challenge to developing top-performing employees is not a lack of financial support but a lack of trust. What about “employee engagement”, something that’s been much discussed since other studies revealed how many people are unengaged in their work? The good news is that the same elements that foster high performance increase engagement. Climbing that peak to powerful performance may take more time and special effort, but it’s more than worth it. The view from the top will have everyone high-fiving happily. BR

JOHN R. COCHRAN

CASE STUDY

ClubDesign Associates, a Forth Worth, TX firm, has been involved in 250-plus renovations of country clubs. John, founder of CDA, is a board member at Colonial Country Club, has served on its long range planning committee and will be chairman of the building committee in 2018. For more information call (817) 810-0333 or visit www.clubdesignassociates.com.

The Increasing Need For Long Range Planning The further the economy moves away from the terrible year of 2008 the better! The club business, as we all know, is a dues business. With several Americans getting hit hard by the 2008 economy the luxuries had to be put on hold and/or discarded.

WOW, what a difference 10 years has made to the club business. Country clubs, during these 10 years have been sold and foreclosed to actually being bulldozed, redeveloped and repurposed. We find ourselves, and the industry coming out of a recession and moving our balance sheets finally into the black. With that said, NOW is the time to develop long range planning committees and start catering to the members and returning members that stuck it out during this stagnant time of stalled capital projects. A long range planning committee should consist of members that truly care about the future of the club. Not two, three four or five-plus years down the road, but second, third and possibly fourth generations of members. The member that I like to refer to as the 10Percenters is the type of member you do not want on any long range planning committee. This member usually has an agenda, a member who only cares about their tenure on any committee and one that truly doesn’t have the best intentions of having a healthy club (attrition) after they’re long gone. The reason I refer to this type of member as a 10Percenter is because on average, every club no matter if you’re a mid-level club or in the USGA List of Top 50 Clubs in the US, you have this type of member. And if you say you don’t have 10Percenters at your club… Then it’s you!

The LRPC, should consist of no more then eight members, so the process doesn’t get bogged down with too many opinions. The members selected should have backgrounds in business; have some type of fashion sense and understand construction. Also, the committee members should be selected from all categories of the club….golf, tennis, social etc. If you follow these guidelines, you will have great success. The last two additions to the committee should always be the general manager and membership director; these two staff members keep an eye on trends and what the competition is developing at their clubs. The final item to note is the chairperson of the LRPC should have a co-chairperson, who will in turn become the next chairperson. This will keep the ideas, goals and final decisions of the committee moving forward towards final implementation of the long-range plan. During the long range planning process, you should always keep the entire membership aware of your plans. Also, have marketing material on hand (renderings / sample boards / as builts / newly designed plans) of the upcoming projects that will be implemented. These items will keep your membership director happy while they are developing their membership program and bringing new members into the club. BR

The Club at Carlton Wo o d s : Lo n g Ra n ge P l a n n i n g / P h a se I . / Cocktail Lounge Renovat i o n a n d Ad j ace n t F i re P i t Lo u n ge

F i d d l e st i c ks Co u n t r y C l u b: Re n d e r i n g (to p) a n d F i n a l Project - Long Ra n ge Po o l / Po o l Co c k t a i l Lo u n ge / H a l f way H o u se & Coffee Bar Project

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SHARON HARRIS

CASE STUDY

Gasser Chair Company is a top American designer and manufacturer of seating products for worldwide gaming, hospitality and casino venues. Based in Youngstown, Ohio, Gasser Chair has operated as a family-owned business since brothers Louis, Roger and George Gasser founded the company in 1946. For more information, visit www.GasserChair.com.

A Conversation with Sarah Allen Facilities Director at Avalon Holdings Whenever Sarah Allen, Avalon Holdings’ facilities director, has requirements for seating, she evaluates several brands and suppliers, taking into account a multitude of factors in making informed and judicious decisions. Ultimately, Gasser Chair has been selected for all of the dining room, lounge and banquet room seating. Avalon Holdings owns and operates one resort hotel and three golf and country clubs in the greater Mahoning/Shenango Valleys in Ohio. Allen primarily oversees the “visual upkeep of the properties and furnishings, plus all new construction and renovation projects.” Various Gasser models figure prominently in all of the Avalon properties. A total remodel of the Avalon Inn & Resort included all 133 guest rooms, the indoor 25-meter Olympic pool, state-of-the-art fitness center, and conference and event spaces. New construction introduced Gatsby’s (pictured below), the resort’s fine dining restaurant. Our goal, to make each space unforgettable, showcases our master carpenters’ talents across the entire property. This renaissance uses many forgotten design elements to allow our timeless decor to survive newer trends. Quality, durable seating throughout must complement our design.” According to Allen, renovating the Avalon Inn has “put life back into a property” that was facing possible demolition. Today, the Avalon Inn has such appealing

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new style that many well-known people who are traveling through the area want to stay there. “Because of our wonderful renovation results, we offer ballroom, conference, dining and golf all under one roof. Completing all this required comprehensive, strategic planning, plus the need to select appropriate seating. The right chair is crucial to creating a pleasing environment,” says Allen. The Solandra Series (SLA 101-S8) stacking chair, purchased in two different fabrics and powder coatings, is used throughout the conference space. Owner Ron Klingle liked the sample’s comfort so much he made it his own personal chair when at the project. Allen says, “Although Gasser produces products for renowned destinations worldwide, the company still has the mentality of a small-town ‘mom and pop’ shop. I am fascinated that every person I dealt with, including the receptionist, delivery driver, upholstery staff and Mark Gasser, all seemed genuinely happy with their jobs. They always take pride in their work and each customer is a priority. From the initial consultation to design and delivery, what mattered to us, mattered to Gasser. They always got it.” Customers who are comfortable will stay longer and tend to return more often. When buying chairs, Klingle and Allen and clearly recognize how their guests’ experiences dictate their choices. She says, “A comfortable, durable chair will relax a guest, and a satisfied guest is what fills our seats.” BR

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.

What Do You Expect of Your Executive Chef? “How long can we expect a new executive chef to stay at our club?” That’s a question search committees always ask. Club general managers and members typically want an executive chef who will work for 10 years or more at their club. While there are no guarantees in knowing how to keep an employee for 10 years or more, there are certain steps a club can take to define the club culture and foster career growth, which will help extend an executive chef’s tenure. According to the company Club Benchmarking, 53 percent of clubs reported that their executive chef was employed five years or less in 2016 and the median number of years of employment for an executive chef in 2016 was five years. According to the Bureau of Labor Statistics, the median years with a current employer for employed wage and salary workers in the leisure and hospitality industry in January 2016 was 2.2. To break that number down further, those employed in the food services and drinking places segment dropped to 1.8 years.

team and the staff. And the club should have a well-defined identity that is communicated through core values and mission. According to a report in the Harvard Business Review, “allowing workers to stagnate in their current role”, is one of the key factors that drives turnover. According to the article “Why Do Employees Stay? A Clear Career Path and Good Pay, for Starters” (Chamberlain, March 6, 2017), “stagnating in a role for an additional 10 months raises the odds that employees will leave the company for their next role by about one percentage point, a statistically significant effect.” So how do you prevent job stagnation? First you need to know what motivates your executive chef. Next, offer opportunities for growth within the club. Here are seven ways clubs can prevent job stagnation by offering opportunities for growth. 1. Support and encourage professional development for the executive chef and their team. This includes certifications as well as membership in a professional association such as the ACF, and travel and participation in conferences for educational and networking opportunities. 2. Expand or rebrand dining venues. Planning and executing a new venue or expanding a current dining venue (i.e., adding more al fresco dining) is a great opportunity for growth. Don’t forget to expand the kitchen so that the culinary team can accommodate the expanded dining venue!

Two key factors that affect employee turnover are developing a positive and supportive club culture and preventing job stagnation. A club with a defined culture that supports its employees and promotes career growth will go far in attracting and engaging staff. Cohesive alignment must exist between the board, the management 54

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3. Support community outreach – both local and national. Examples include showcasing the culinary team with a food booth at community charity events and food festivals; supporting culinary team members in competitions at the local, regional, national, and even international levels; and supporting

the executive chef as an adjunct culinary faculty member of the local community college. Supporting an executive chef’s outreach in the community is a win-win situation for the club. The chef and culinary team’s engagement increases, as does their growth. Also, the club receives local, regional and even national attention (depending on the event) which is great for attracting members and staff to the club. Kevin Storm, CEC, the executive chef at Bellerive Country Club said, “I have been at Bellerive for 21 years because of the support they have given me and our culinary team in community outreach at a local, regional, national and international level. That is what keeps us engaged, focused and relevant.” Kevin has served on ACF’s Culinary Team USA and is a coach of the current junior team USA. The club supports his ACF involvement, as well as his outreach to the local culinary school and his efforts towards achieving certified master chef status which he is currently pursuing. 4. Purchase new equipment and be supportive of new ideas. Has the executive chef asked for equipment such as an immersion circulator? How about a pizza oven? A garden and/or bee hives? The club’s support of these new ideas will go a long way in keeping an executive chef and their team engaged at the club. Also, the kitchen equipment must be a part of capital investments. Give the team the equipment and tools they need to do their jobs effectively and efficiently. 5. Offer increases in titles and salary/bonus potential. Just because the executive chef has reached the highest title in the kitchen doesn’t mean there isn’t still opportunity for growth. Consider promoting the executive chef to culinary director after a five-year tenure. This can include additional responsibilities and project work. If the executive chef has expressed an interest in moving to the frontof-the-house, consider a “Chef & B” role. Lawrence McFadden, the general manager/COO at The Union Club in Cleveland stated recently, “Titles are important. Clubs really need to look at how to attract and engage the best minds, talents and egos (a positive ego can propel an organization forward more effectively than hard work and dedication). A marketable title will attract the best in class. Our club has an executive chef, executive sous chef and chef de cuisine. Previously the positions were titled as executive chef with two sous chefs. Today, both our current sous chefs have 10 plus years of experience and were sous chefs for five years before joining us, so an

elevation in title along with extra responsibilities was necessary to justify the move from their previous employers. Human resource departments should always be challenged to secure the most marketable titles and descriptions which is no different than brand wordsmithing.” 6. Provide opportunities for autonomy. Executive chefs should be part of the staff executive committee and they should be involved in committee meetings, finance meetings, and even board meetings. Give them the tools to do their jobs and the goals that they need to achieve and let them lead their team to accomplish those goals. Nobody likes to be micromanaged and it’s a guaranteed way to drive the best leaders out of the club. 7. Provide a labor budget that allows for the culinary team to have a balance of life. There is a severe shortage of staff and the only way to attract and keep frontline employees is to offer higher pay and less hours. Good luck finding a Millennial that is willing to work the back-breaking hours that kitchen employees worked “back in the day.” More staff is needed to offer five-day-a-week work weeks. Executive chef Brian Beland, CMC, has experienced these growth opportunities throughout his 13-year tenure at the Country Club of Detroit. Originally hired as chef de cuisine, he was promoted to executive chef. The club supported the certifications he has achieved including CEC and CMC. The club also has had extensive renovations over the last few years leading to exciting new opportunities for re-concepting dining rooms, opening new dining venues, and expanding the kitchen. The club has given him the opportunity to provide input to the board and at annual meetings. The club has even supported his full-time work as a faculty member at Schoolcraft College where he teaches and influences young talent (and can select the best and the brightest to work in his kitchens!). It’s important to keep the lines of communication open. Use “stay interviews” regularly to meet one-on-one with employees, including the executive chef, to find out what motivates each individual. Learn about their short and long-term personal and professional goals. Ask them what you can do to help them attain those goals. Also ask them what they need to do their job successfully and show them you care about and are invested in their future growth. Finally provide the opportunities we discussed to create a culture of growth and support at your club. BR

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TODD DUFEK

HOUSE COMMITTEE

Todd Dufek is the founder and president of the Locker Room Managers Association (www.yourlrma.com) with over 200 member clubs in nearly 40 states. He is the locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona and has spent over three decades in the profession. Contact Todd at tmdufek@cox.net.

Smart Phones are Integral Part of Locker Room Smart phones have crept every area of our lives and golf and country club locker rooms are no exception. And while texting might be outlawed in most club employee handbooks, the benefits to members, guests and staff are many. As a locker room manager, the primary person I text throughout my work day is our full-time women’s locker room attendant. It has advantages in that it improves customer service and provides a record of our conversation that we can refer to later. And I’ve discovered the same is true for my colleagues. One of the things we pride ourselves on at The Country Club at DC Ranch, Scottsdale, AZ is going above and beyond or “wowing” our guests. One way we do that in the women’s locker room is by putting every guest’s name on a blank silver nameplate (gold in the men’s) on the guest’s locker using a labeler that prints black letters on clear tape. Many an astonished guest has taken a photo of it on the spot and sent it to friends or family (it looks like its engraved, and most guests think it is). To make this work, I make two copies of the tee sheet daily, circle the names of the male guests on one copy and female guests on the other and drop the latter on the attendant’s service counter first thing in the morning. She notes what guest is playing with a member and gives the guest a locker in the member’s locker bay with her name on the plate. It’s the same as I do in the men’s locker room). Occasionally, if we need to add a name, all that’s required is a quick text and the name is up on the locker in seconds. I have confirmation that it’s been done moments later and we’ve kept the “wow” in the “wowing.” Other locker room managers also use texting. John Wysocki, men’s locker room manager at Walnut Creek Country Club in South Lyon, Michigan said, “I text my staff and use it to stay in touch with the golf professionals and general manager. It’s just the day-to-day stuff: where lostand-found items are located, how to charge for food and beverage items, etc.” Obviously, it saves time and makes customer service more efficient because John doesn’t have to call a co-

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worker or visit their department, but can quickly respond to a text with a text. Other managers use texting for a more fundamental purpose: communicating with co-workers. It beats having to take time for a phone call. “I do text my staff from time to time to confirm our schedules. But normally it’s at night when we are off,” stated Bobby Orr, locker room manager at Big Canyon Country Club in Newport Beach, California. Texting, as noted, creates a written record of the conversation between locker room staffers. If there is, for example, confusion over work schedules or when an attendant asked the manager to order an amenity, the “thread” is available for review. Clarity results and conflicts are avoided. These are just a few examples of how texting can make guests feel more welcome, save time and resolve conflicts. Just use it discretely or out of sight of your members and guests. Better yet, get permission from management before using this form of communication at your club. BR

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MATTHEW JANUSZEK

WELLNESS COMMITTEE

Matthew Januszek is co-founder at Escape Fitness and can be reached at (614) 706-4462 or via email at marketing@EscapeFitness.com Check it out: https://www.youtube.com/watch?v=SRGTO7BLdMk

Keep Your Club Competitive Reinventing the Fitness Center

At many private clubs, golf, swimming and tennis are king, often getting attention facility. With membership ranging from first-time and casual exercisers to fitness and budget. enthusiasts, school-aged athletes and proBut general fitness – small and large group exercise, personal training, fessionals, Sweetwater decided to bring strength and conditioning – are growing in popularity and are part of movement and functionality to the club to many members’ lives whether they use the club or a commercial gym to better cater to their diverse fitness needs. fulfill this need. To accomplish this, Sweetwater exAccording to International Health, Racquet & Sportsclub Association panded its strength and conditioning (IHRSA), the health club and fitness industry trade association, recent figspace and converted two racquetball ures indicate 54.1 million people have commercial gym memberships. Incourts to become home to its new Escape creasingly people are investing in overall fitness. Many are your members. Fitness system – reinventing both equipCan private clubs tap into this fitness trend to bolster retention and rement and atmosphere to help drive particcruitment? Yes. And, in doing so, they can elevate overall club experience to ipation and retention. become more relevant to their members’ lives. The newly created functional movement When’s the last time you evaluated member attitudes and needs around training area has been to fully reimagined your fitness center? Though it’s not your golf course, your fitness center is and reinvented to be multi-functional with easier to reinvent and has the potential to yield wider gains than redoing multiple amenities around equipment multiple holes on your greens or tees. Progressive clubs are investing in manufacturer Escape Fitness’ Octagon their fitness centers to increase the value to their membership. Hub Training System. Sweetwater County Club in Sugarland, TX recently reinvented its fitness This functional fitness frame includes and sports center to take member workouts to the next level by creating a storage for equipment. It’s an indoor playfunctional movement training space. ground for adults focused on active moveUnder new ownership and management with CBIGG Mgt. Inc., Sweetwater ment patterns versus isolating muscles on surveyed members and found they wanted a new, reliable and varied fitness a machine. While enticing new members, the refit also expands the capability for personal and group training. Sweetwater now offers seven classes through its professional training staff using the new equipment. “We use the word reinvention versus renovation because the enhancements have literally changed the way members

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use, feel about, and refer to the club. We’re starting to see an increase in not only the new areas but also basketball and aquatics. This has helped increase the pride our members have in belonging to Sweetwater,” said Patrick Pettit, general manager, Sweetwater Country Club. “Our new functional movement training area has made a huge difference in a short time because the equipment and configuration allows us to get so much done in a small space,” said Leroy Franklin, athletic director and head strength and conditioning coach, Sweetwater Country Club. “Functional fitness is as relevant to everyday living as it is to whatever sport you play. By adding it, we’ve taken our facility way beyond what members could find at all the other country club gyms.” Exercisers today seek that boutique studio feel. When you give members an exciting space, smartly equipped,

and staffed with trainers who can help them achieve real results, you meet their fitness needs and create passionate club advocates. Considering a fitness center reinvention? Here are seven guidelines: 1. Innovate now to win big before you’re forced to catch up. 2. Clearly differentiate. Be something great to your membership, not everything to everyone. 3. Clearly define a plan and strategy. Avoid too many goals or ideas. 4. Make sure your equipment fits your purpose and brand. 5. Cater solutions around your member type and ability–support them. 6. Grow a skilled, expert, continually trained team. 7. Have a branded training program to keep things exciting week after week. BR

Thought Leaders & Industry Experts

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RICK LADENDORF

WELLNESS COMMITTEE

Rick Ladendorf is the president of Prevo Health Solutions, Executive Producer of the AMERICA’S HEALTHIEST CLUBS© Network and Founder of the Wellness Project™. Contact Rick Ladendorf at (949) 933-5470 or rick@americashealthiestclubs.com or rladendorf@prevohealth.com

Infrared Saunas

A Hot Wellness Trend with Less Heat! I can’t play in the three-day member-guest tournament because my aching back won’t allow me to play more than one day! We are thinking about resigning our membership because we don’t play golf as much as we use to! Sound familiar? Club managers all know, a lack of use is the number one reason why members resign and in many cases lack of use stems from chronic pain that prevents the member from playing golf, tennis, bocce, pickleball, hiking, running or participating in other club hosted recreational activities. A SOLUTION – INFRARED SAUNAS

Private clubs all over the country are replacing traditional saunas with infrared saunas for a variety of reasons, the most important of which is the proven health benefits. And we all know healthy and active members make the best members as they play more, spend more and in general they recruit their friends.

Far Infrared therapy increases blood circulation and oxygen supply to damaged tissues (aiding reduction of chronic joint and muscle pain or sport injuries), promotes relaxation and comfort, induces sleep and relieves stress. According to Justus F. Lehmann, M.D., Williams, and Wilkin, Therapeutic Effects of Far Infrared Heat, Far Infrared Therapy does the following: • Decreases joint stiffness • Relieves muscle spasms • Increases blood flow • Leads to pain relief • Affects soft tissue injury • Increases the extensibility of collagen tissue • Assists in resolution of inflammatory infiltrated, edema, and exudes. In summary, there are over 1,000 diseases and health conditions that have been helped by Far Infrared Thermal Therapy.

Gulf Harbour Yacht & Country Club in Fort Myers, FL is nearing the completion of a 22,000-square foot wellness center and has replaced the men’s and ladies room steam sauna with infrared. Each 10 by 10-foot sauna can accommodate a large group. Over the last 25 years, Japanese and Chinese researchers and clinicians have completed extensive research on “far infrared” medical treatments and report many amazing discoveries. Their findings support the health benefits of far infrared therapy as a method of healing as far infrared light stimulates the production of cell tissue and rapidly promotes the regeneration of skin and blood tissue. Studies indicate that benefits of “far infrared” sauna use include: muscle relaxation stress, tension and headache relief reduction and removal of body toxins increased cardiovascular strength increased blood circulation strengthened immune system improved lung function, and refreshed, moisturized skin. 60

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INFRARED SAUNA VERSUS TRADITIONAL SAUNAS

An infrared sauna is a type of sauna that uses light to create heat. This type of sauna is sometimes called a far infrared sauna — “far” describes where the infrared waves fall on the light spectrum. A traditional sauna uses heat to warm the air, which in turn warms your body. Infrared heaters warm the body in the same manner as natural sunlight. Infrared heat therapy uses the wavelength of the visible and non-visible light spectrum of sunlight that heats the body normally. Traditional saunas raise the temperature of the air to a very high level within the chamber to warm the body. A steam sauna is going to have a lower temperature than a traditional dry sauna, but it is also going to em-

ploy large amounts of heated steam, which creates a humid experience. Infrared saunas do not use steam and rely fully on the heat from the infrared heaters for overall effects. INFRARED OPTIONS

1. Personal units are available and can be placed in locker rooms, fitness centers and in the member’s home. Many golfers use the personal units for golf/workout therapy or they can be used at home to relax while gaining the health benefits of infrared therapy. 2. Retrofit existing space. Infrared saunas are replacing traditional saunas at private clubs, spas, rehab facilities and alternative medicine practices as they serve a purpose that goes beyond sweating. 3. New construction. This is the ideal time to evaluate the benefits of infrared technology to replace traditional saunas. The incremental cost is insignificant, and the benefits are significant. Custom and standard units are available. CASE STUDIES

sauna with infrared. Each 10 by 10-foot sauna can accommodate a large group. Sea Pines Country Club in Hilton Head, SC is in the design phase of an expansion. After doing some research, the club decided to retrofit the space to include custom infrared saunas to replace the traditional steam sauna. Robbie Ames, general manager says, “The benefit of being able to use the infrared sauna with your clothes on before or after a round of golf or game of tennis happens to be a huge attraction for us.” Bridgewater Country Club in Carmel, Indiana installed infrared saunas several months ago and is finding it challenging to educate some of the members on the benefits. “Change is hard, members think a sauna should be hot and they don’t understand the technology or the benefits,” said general manager Mike Gardner. “I’ve had some members approach me who are extremely happy. Their holistic doctor actually recommended they use an infrared sauna weekly. Since we installed one at the club they’ve been able to use the club more instead of going to other local facilities, and they’d much rather be at their home club than some other facility.” BR

Gulf Harbour Yacht & Country Club in Fort Myers, FL is nearing the completion of a 22,000-square foot wellness center and has replaced the men’s and ladies room steam

JANUARY/FEBRUARY 2018 | BOARDROOM

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

Club or Cult? Marines proudly have them. So do a lot of football and basketball players. Then there are the “bikers.” (No, I’m not just referring to the stereotypical image of a stout, leather clad, bearded, Easy Rider from the 1969 movie of the same name.)

Today, we can add Brand Loyalists, Brand Fanatics, or as Ken Blanchard calls them, Raving Fans to the reams of consumers displaying brand-art on their bodies. So what do all of these cohorts have in common? Tattoos (or “tats”), of course. It’s not uncommon to see Harley-Davidson, Nike, or Apple logos permanently etched on some loyal follower’s arm. Even images of Oprah and Guy Fieri of TV’s Drive Ins Diners and Dives fame have been cited sticking out of sleeves of devotees. And recently, I saw a young woman’s leg branded with Coca-Cola. People who literally sear their bodies with a company’s logo or imagery have a cult-like devotion to that brand.

And it is clear and everyone recognizes it. But today, people also want the brand to be relevant to them. Relevancy simply means how important or meaningful that point of differentiation is to members and potential members. This bring us to the WIITY Principle. WIITY – what is important to you – simply means that your strategic thinking has to be phrased in terms of benefits, not features. Here is where two magic words come into play. Whenever you are thinking about a product, a service or a feature of your club, you are thinking from management’s point of view instead of members’. By simply mentally adding the words, ”which means,” you move it into the WIITY category. For example, your ballroom can seat 350 people for a wedding…which means…you can accommodate everyone the couple wants to invite.

Why some people are unabashedly loyal to a brand is still a mystery to marketers. And why they will ink the brand logo onto themselves is a bigger mystery. So, while your club may have very loyal members, I’d wager that not one of them is going to brand their skin with its logo. You’ll have to settle for selling them a logoed shirt, golf bag or tennis racket cover. The notion that brands can have qualities that are similar to cults was popularized more than a decade ago when Douglas Atkin published his benchmark book on the culture of brands. Since that time, marketers have learned how to infuse these qualities into their brand strategies. For example, here are Gold, Silver, and Bronze strategies that clubs can borrow from cult brands: Relevancy – I’ve often written about how every club has to differentiate itself from its competitors. It has to stand apart; it has to break through the clutter; it has to be unique. In an earlier Boardroom Magazine article, (Is Your Club Even Relevant Anymore?) however, I wrote that being different isn’t enough anymore. Being different simply means how distinguishing your club is to your members and potential members. In other words, you have something your competitors don’t have. 62

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Dauntless – Every club has its nay-sayers. Sometimes they are on your boards, and sometimes they are just very vocal members. These are the folks that want to keep everything at the club the way it used to be. That’s fine to a point because clubs are built on their heritage. It is tradition that helps to make a club special – to help differentiate it. But it is no secret that today’s members have far different needs and wants than those of yesteryear. So here is where club leadership has to be courageous in modernizing the club’s experience. General managers/COOs have the opportunity to demonstrate (and cajole) club leaders on moving forward, if needed. SEE MEMBERSHIP MUSINGS | 105

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CRAIG MARTIN Craig D. Martin CCM, is general manager/COO of St. Andrews Country Club in Boca Raton, FL. He can be reached via email: cmartin@standrewscc.com

MARKETING COMMITTEE

Turning Your Golf Performance Center Into a Marketing Tool “That which can be measured, can be improved.” - Peter Drucker For six years the members of St. Andrews Country Club, a BoardRoom Distinguished Club, in Boca Raton, FL have enjoyed their world class golf facilities. These include a state-of-the-art golf performance center (GPC) featuring an indoor hitting bay, private practice areas, The Turn snack bar, hi tech V1 Digital Coaching System and FlightScope Launch Monitor® technologies and a Callaway Golf® branded club fitting area. EMBRACE TECHNOLOGY

St. Andrews commitment to embracing technology to enhance its existing member golf program has paid off by appealing to a younger generation with its combination of computerized equipment and social media. It has proven to be a useful tool in stimulating golf lessons, retail sales and participation in tournaments. Members of the club can visualize firsthand what their golf instructor sees, adjust their swing accordingly and hone their skills in a shorter timeframe at no additional cost. COACHING REINVENTED

By offering a golf performance center, the possibilities are endless. It opens the door to offer clinics and member exclusive programs, in addition to individualized, tailored coaching specific to each member’s needs. St. Andrews created a guest golf instructor program where each month members have private access to some of the top teaching professionals in the world such as Michael Breed, Jim McLean, Todd Anderson, the Golf Channel, and Bob Toski. Golf clinics are also popular among the membership and feature some of the world’s top

golfers like Morgan Pressel, Ken Duke, Charl Schwartzel, and Tom Kite as part of the club’s commitment to ensuring a year-round golf experience that can’t be found anywhere else. ELEVATED EQUIPMENT

From drivers to putters, we have the right equipment for any task. By partnering with Callaway and bringing in V1 and FlightScope technologies, St. Andrews is the only private country club in south Florida to offer all of these services, including instruction in a comprehensive GPC facility. The GPC design allows the club to double the size as demand warrants and still house all computer equipment and club fitting tools. The professional golf instruction staff can now offer lessons in the GPC, driving range, putting or chipping practice areas or either of the two 36-hole championship courses at the same low price. PERSONALIZED EXPERIENCE

The GPC has elevated golf instruction by combining personalized coaching with the latest teaching technologies including V1 comparative video analysis, providing a computerized swing diagnosis which shows the golfer exactly where their swing needs correction and improvement. It can even break down frame by frame or compare a swing to a professional golfer’s to highlight the differences or similarities. Members enjoy all the benefits of having a golf performance center. It not only improves their golf game but also their real estate value. BR 64

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COREY SABAN Corey Saban is co-founder of Newstation.com. A former Emmy nominated and Associated Press winning TV journalist Saban’s company serves as a virtual newsroom for all industries looking to use short form video to engage their clientele. To learn more, text the name Corey to 31996 or email him at CSaban@Newstation.com.

MARKETING COMMITTEE

Adapt or Perish How many times a day do you find yourself looking at your phone? Checking email or texts? Whether you’re an Android user or iPhone devotee, the smartphone has made our lives easier but it’s also played a major role in the disruption of many industries. Just look at retail. Mobile shopping is on the rise, while mall mainstays like Macy’s, JC Penny, HH Gregg, and even hipster spots like Abercrombie & Fitch and American Apparel are closing their doors. The storefront has a new look and feel and it’s right in your pocket. The smartphone changed the music industry. No longer do we carry around CDs, use Kodak cameras or even a Garmin? With a click of a button you can hear your favorite Beatles song, take a picture or get directions to the nearest ATM. Communication has been transformed, no longer do you need to call when you’re late, a simple text does the trick. This is the new norm. Think about the alerts you get throughout the day from your favorite apps and news sites. Yes, traditional news will soon be a thing of the past. We don’t watch the 11 o’clock news like we did 20 years ago. We get information whenever we want it and most people find it on social media. In the last Presidential election 62 percent of voters learned more about the candidates on social sites like Facebook and Twitter, as opposed to TV and print. Print newspapers are dying a very slow death. Ad revenue is down, there’s been a great deal of consolidation and The Newspaper Association of America has stopped releasing industry wide revenue data. A big part of their demise has been video. Next to nearly every online article is a video, YouTube is the second highest trafficked search engine right behind Google, which just happens to own YouTube. Every Fortune 500 has a YouTube channel, (a channel is your branding with your video content). Many clubs do as well. In fact, a great number of clubs are getting members to ‘like’ their Facebook page and subscribe to their YouTube channel as a means of sharing their messaging. YouTube is 100 percent video, allowing you to create a feeling, tell a story and show the audience what you want whether it’s highlighting a construction project, or promoting a social or dining event. Many clubs throughout the Seminole region in south Florida use monthly video updates to do just that. They share them on social sites, digital displays and YouTube to create greater engagement. Other clubs use them as a selling tool to highlight homes for sale.

Video is disruptive when it’s short and to the point. First, style matters. You are being judged on quality, appearance and messaging so before you pull out your phone and hit record, think again. Also, be brief, once you go over 80 seconds you lose 72 percent of your audience. Focus on one or two key talking points so you can see the benefits. If your members have phones (they do) communicate with them in an effective manner…be in their pocket. Text and post video to social media, email it and see how they respond. Seniors, Boomers and Gen Xers are all digital immigrants, having grown up with the rotary phone and yellow book but the smartphone is a convenience they cannot live without. We average 87 hours a month on our phones, that’s more time than we spend watching TV. Your goal is to not get left behind. Stay relevant and up to date if not, for today’s member than for tomorrows. The Millennial is digitally native; they don’t know a world without this technology. Soon you will have to learn Snapchat, Instagram and whatever the next thing is. It comes down to adapt or perish, be aware of the disruption in communication, gauge members and remember they are mobile so provide them information they can easily share with just a click of a button. 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.

Changing Trends for Private Clubs in 2018 Private clubs are often a bastion of old-school practices and slow, moderated change. The pace of change in most private clubs has accelerated and will make big jumps in 2018. Club leaders must plan for progress in their clubs on three club-altering changes in 2018.

Club communications will be more personal. Private clubs are social institutions that are typically driven by personal – rather than transactional - needs. Because clubs are personal in nature, new-found relevance will arise from personal profiles for the club’s members. Members want to accelerate how they can get to know one another. Following examples such as LinkedIn and Facebook, membership relationships will be made more personal in 2018 as private club communications providers hurry to convert established public profile systems to properly serve private clubs with their limitations on publicly accessible information. Specifically, private club’s information systems will make

significantly increase member-to-member engagement and represents new opportunity for clubs to accommodate and serve these self-sourced activities. Club managers must create more agile capabilities for cultivating member initiatives. Millennials will take center stage in forward planning for many private clubs. Private clubs have struggled in many cases to effect the generational change from Baby Boomers to Generation X and beyond. Many clubs’ economies – and resulting program offerings – have targeted the loudest, oldest and most engaged members, who have been Boomers until now. As Boomers begin to become less engaged in their clubs and more insistent on “senior” discounts, new generations become the social and economic drivers for their private clubs. Much hand-wringing over the willingness of Millennials to engage in private clubs has caused some clubs to stall in their social planning. Recent research from CMAA

Superior standards of operation, energetic and accessible family activities and innovative programs will give outdated brands new life. Since 2011 a flight to quality has become a primary point of importance for new club members. When asked to invest substantial joining fees, new members look for quality as an indicator of value. This trend has rewarded top-performing clubs and managers while punishing those mired in mediocrity. the club more connective and interactive for club members. First, new closed-community systems will enable private club members to populate personal information – such as email and social media addresses, employment and alma mater – with fellow members. The elements that enable club members to become acquainted with other members through shared experiences or background characteristics are the new necessity. People join private clubs for the social platform of the club and this emerging trend will accelerate interpersonal connections. Secondly, the new and improved connectivity will enable club members to self-source events, activities, and celebrations that used to be “booked” by the club. Empowering members will increase the relevance of the club in their lives and enhance member engagement. This capability will 66

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and Global Golf Advisors separately have found similar themes about Millennial members…they are quite social and expect clubs that are different than their grandfathers’ clubs. Millennials seek socialization that is inclusive, purposeful and readily accessible when their schedules allow. Consistently, Millennials express the determination that their friendship networks are diverse and that they believe private clubs should be similarly diverse and welcoming. And, Millennials want to belong to clubs that represent more than social separation. They favor clubs that stand for admirable values, such as environmental responsibility, SEE GLOBAL PERSPECTIVES | 109

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ROBYN STOWELL

NED MCCRORY

LEGISLATIVE COMMITTEE

Sticker Shock

Employee Fraud and Theft Fifty billion dollars per year! That’s the amount employees steal from U.S. businesses annually. The fraudsters are not your typical bad guy – roughly 87 percent are first-time offenders with clean employment histories. They are your good employees! They have often been with the company for years and are hard workers. In many cases, the employee repeatedly diverts small sums of money over a period of time, making the theft extremely difficult to detect. In over a quarter of these cases, the employee theft continues over a period of more than five years. Wow! What have we seen? Club employees use club credit cards for personal expenses – and the (former – fired) GM told them they could because it was part of their “bonus.” And employee stole from the pro shop and resold equipment on eBay and Craigslist. The catering manager approved invoices for more food than delivered and accepted a kickback from the vendor. The manager “hired” fictional employees and collected their pay. An F&B manager ran a catering business supplied with food from the club’s kitchen. How does this happen? Why do first time offenders steal from their employer? It’s estimated that 10 percent of employees will always steal, another 10 percent will never steal and, for the remaining 80 percent, it’s a matter of risk and opportunity. So, what is a club to do? Be as unappealing a target as possible! How? Have good policies, processes and training in place so that employees know the risk outweighs the opportunity! Many clubs find background checks beneficial during the hiring process. This is particularly important for managers and many accounting and IT roles. It’s not a panacea, however, because fraudsters terminated by a previous employer were often not prosecuted. These bad actors aren’t prosecuted because typically there are no funds left to recover and, frankly, embar-

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rassment. We have yet to see an embezzler stash the money in a bank account, and board members don’t want it known that it happened on their watch. A good path forward starts with the board of directors. Each director owes the club a duty of due care. The board should ensure that the club has well-defined (and documented) policies, training and processes in place. Some work environments allow bad employee habits to continue, with a variety of ways to use or take club resources. There is a mentality of “everyone does it.” Do not allow this type of environment to continue. Well-managed clubs often have a policy of mandatory vacations for all management positions. During this time away, someone else should perform all that manager’s duties. If anything is amiss, it can be discovered during this time. This policy’s other added benefit: it requires and promotes cross training so that more than one person knows how to do a job. Strict policies for every employee with purchasing authority or invoice approval can help. These can include a “conflict” policy (they cannot purchase from family and friends), a no-kick-back policy, and a second-signor requirement. This applies to catering, pro shop, etc. Another option is to limit purchases to a management-approved vendor listing. This can help eliminate fraudulent invoices and vendor kickbacks. Cash handling and accounting policies are important. Restricting cash access and member credit approvals to those who do not post to accounting records precludes an individual employee from having the required access to perpetrate certain frauds using accounting entries. Consider your physical plant. Do employees have a designated entrance with their parcels and bags restricted to their locker room? Do you use clear trash bags and security cameras? SEE LEGISLATIVE COMMITTEE | 109

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Friedrich eder

on the frontlines

Friedrich Eder, CCM, CCE is general manager/COO, Fairview Country Club Greenwich, CT. He can be reached at: (914) 715 9492 or via email: friedrich.eder@yahoo.com

Mentoring Millennials By 2025, 75 percent of our workforce will be made up by Millenials (Generation Y) and Generation Z. Randstad USA, an human resources services firm, surveyed the oldest members of Generation Z (22 years old and FT employed) and Millenialls (23 to 34 years old) and learned that both generations are missing negotiating skills, a lack of managing other people and have a need of mentoring/executive sponsorship and constant feedback. I have made mentoring a part of my day-to-day work and operations. Not everyone has a natural talent and is eager to mentor, especially when it comes to mentoring Millennials. And who would fault you for that? Mentoring demands a high investment of time, energy and let’s not forget the effort to sit down with Millennials. You try to explain to them the way business was run 10, 20 or even 30 years ago while they are looking at their cell phones, answering text messages, and returning emails. Why invest the time, when in the end they leave anyway? Would you rather train someone with a probability of them leaving and finding a better job, or would you rather not train and educate them and have them stay? It seems that BoardRoom magazine with its many stories on Millennials, and the Club Managers Association of America have spent a lot of time over the past years on Millennial – how they think, what motivates them, what’s important to them, etc. What we’ve missed discussing is how we mentor them. We need to learn how to mentor and understand the commitment and influence we have over others. Some say that wisdom comes with age, however sometimes age comes alone. Many managers do not mentor for the simple reason of insecurity that the person being mentored becomes bigger and more powerful than the mentors

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themselves. Most Millennials are already far ahead of the Gen X’ers and Baby Boomers when it comes to technology and social media. If we share our operational wisdom that it took us years to build, where does that leave the “older” generations? Truth is, we need to make development of people our top priority without feeling threatened, but limit who you take along for the ride. Select the top 20 percent of people around you and then develop a relationship. The ones I like to mentor are those who make things happen. Look for leaders that attract leaders. “Leaders” that have no one to follow them are not leaders, they are managers. Be selective of whom you want to mentor! If you cannot build a personal relationship with the individual, you will not go far in the mentoring process. You must understand each other within the work environment, and outside of work in order to travel the road of success together. Only if you build a strong relationship will you be able to support and help the them unconditionally. Training and mentoring very often focus on story telling. When you train someone, you show them the task while they watch, then they do the task while you watch, until the task is done just the way it should be. I see mentoring differently. Tell them a story and let them figure out how to do it. Let them make mistakes and catch them when they fall, build them back up and have them try it again. As a mentor, you must have a positive attitude, and believe in an ethical

and moral lifestyle. Not only show loyalty to your mentee, but also to your surroundings as you are now a leader that someone else is following. You must be able to create a trusting relationship and be motivational. A relationship in many ways is like an emotional bank account. One makes deposits in form of help, support, advice, etc. The time will come to make withdraws, all your investments are supposed to pay off. However, should you ever be tempted to take advantage of your mentee, you risk destroying the relationship as you will overdraw your emotional bank account. Once you have done all you can, you must be willing to let your mentee go and grow beyond you. This is the time when the mentor moves on and focuses on others. One should always have more than one mentee. Mentoring can be formal, whereof you put aside some time every week to meet and follow a schedule of education. Or some prefer the informal mentoring style - mentoring does not start on Thursday’s at 2 p.m. and stop at 3 p.m. every week. Mentoring is an ongoing exercise. Mentees should be involved in decision making. Helping the mentee with a project, stopping by and simply inquiring how their day is going, telling others about what a fine job your mentee did with the last project, etc. Every interaction with the mentee becomes a mentoring moment. There needs to be a 50/50 balance of the mentee coming to the mentor for advice and the mentor going back with feedback. Mentors who try too hard to build a relationship with the mentee and teach them all the time, become “helicopter mentors” hovering over the mentee. Mentors must believe in their mentees, encourage them, share experiences and trust them. Trust is built over time, with respect, positivit, and sensitivity to others. Admit your

mistakes and you will grow from within. Leaders that admit their mistakes and share their learning experience, usually have more followers. Coaching and monitoring Millennials is not so different. While in the past the mentor selected who they would like to invest in, Millennials are very often selecting their own mentor, and without even asking about the mentor’s availability and willingness to do so. This behavior does not always help the relationship building process, which must be established first. Like most things in life, this is a two-way street and it takes two to tango. Millennials want feedback at any time. They want to hear how well they’ve done – a high five goes a long way. But they also want to hear when it did not go that well, and that’s when the mentor needs to be there to catch them and build them back up. Millennials have grown up in the time of instant gratification and often are misunderstood as ungrateful and impatient. Spend time with the Millennials to understand them, set goals, build a roadmap together with a realistic timeline. Celebrate the accomplishments with your mentees by giving a pat on the back for a job well done, recognition in front of their peers or in a meeting with board members to build trust, loyalty and to show that you believe in them. Millennials will take a lower paying job, should they know that education and mentorship is coming along with it. Br JANUARY/FEBRUARY 2018 | BOARDROOM

Macdonald niven

Terra S. h. Waldron

on the frontlines

Why We Don’t Make Money in F&B! “chris, why can’t we make money in F&B? We need to bring in more business, let’s get the members into their club. increase your outside parties. Bring in some business and offset our dues!” This statement is generally heard around the country annually. Members believe that the club food and beverage operation should be flush with profits – there is virtually no overhead, most often utilities are charged to G&A, there’s not normally a rent factor, lots of expenses are absorbed by other departments. So why doesn’t the club make any money? From extensive research and a survey conducted with over 200 managers, we find that about 27 percent of clubs actually break-even or better. As you might expect, clubs with revenues that exceed expenses in food and beverage have several consistently different traits as compared to clubs which have revenues less than expenses: Revenues tend to be higher, as a percentage, in banquet and lower in ala carte; direct food, beverage, and labor costs tend to be a bit lower, and the table below shows the differences.

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Most clubs will have different costs of food and beverage according to the type of service. For example, as shown above, the cost of food for member club events can differ by five percent when comparing profitable to notprofitable clubs. Since we assume the ingredient costs are the same whether we serve it for member dining, banquets, or the member/guest, the percentage cost will vary according to the price charged. We tend to charge less for our member club events than we charge for ala carte dining or banquets, therefore the associated percentage cost will be higher for the event. Members and committees want to highlight “food cost” as the critical piece of making money. In considering average food and beverage costs, we can see clearly that the difference between profitable and not-profitable is a scant two percent on food cost and zero on beverage cost. Also, it must be known that the calculation for each is on the direct cost of the item on the revenue of the item: food cost only pertains to food sales and beverage cost only pertains to beverage sales. It becomes clear that the culprit in the difference between profitable and not-profitable is in the use of labor, where the difference is significant in percentage and absolute value. Labor is calculated on total sales, a much larger number. There is a whopping 27 percent differential in

labor cost between the profitable and not-profitable club – and that’s on total food and beverage sales. Many directors and members feel that clubs should be as profitable as public restaurants. We compared the average club with successful restaurants (we consider a restaurant successful if it has been operating for over three years).

Here we see that the differences are significant in all areas. Often the product cost to the restaurant is less than the cost to the club because of the buying power of a restaurant, couple lower direct cost with the general higher pricing and the differences can be significant, with labor still garnering the largest differential. Why is labor so different among public restaurants, F&B profitable clubs, and the average not-profitable club? There appear to be two major factors that affect labor cost: 1) Determining the necessary labor, and 2) staff longevity. From a survey of over 200 managers we find that 90 percent of the respondents base their service level on the number of expected members being seated/participating rather than dollar volume. The average number of members served per wait staff person is 14 per hour.

Members and committees want to highlight “food cost” as the critical piece of making money. In considering average food and beverage costs, we can see clearly that the difference between profitable and not-profitable is a scant two percent on food cost and zero on beverage cost. Also, it must be known that the calculation for each is on the direct cost of the item on the revenue of the item: food cost only pertains to food sales and beverage cost only pertains to beverage sales. Service levels must remain constant regardless of what the member purchases. For example, a group of four golfers comes into the 19th Hole after a round, two of whom order one beer each and the other two drink water and eat free pretzels. All four must receive the same level of service and the kitchen needs to be prepared for any order (100 percent of the survey respondents will accommodate member “off menu” requests).

Rarely would any person expect a restaurant to tolerate someone sitting at a table drinking water and eating crackers for an hour! Concerning club, profitable clubs tend to have more banquet business, which allows a far more efficient staff level planning, thereby limiting the service cost. Anecdotally, it’s very common for members to like having consistent staff. It is a badge of honor for members to introduce the maître ‘d, “John would give me candy when I was a child, he’s part of the family.” John would have been with the club for 40 years. In order to keep a person for 40 years, they most likely need to be full-time with benefits, and there’s the constant salary increases, which will probably barely keep up with the cost of living, but will still be far more than the cost of a less experienced maître ‘d. There is no question that the technical aspects of service can be learned in short order, but the familiarity required by members takes time and a certain type of service personality, both of which will be costly. Clubs are focused on service and service is expensive, as shown by the results of both the surveys and individual club financial statements. For a more complete explanation, please go to www.niven.cc and under the Research Papers tab you will find the original paper Concepts of Profitability for Private Club Food and Beverage Operations. Br Terra S. H. Waldron, CCM, CCE is the chief operating officer of Desert Highlands Association. MacDonald Niven, MA, MCM, CCE is with Niven Research and general manager of Oldfield Club, Okatie, SC and can be reached at (510)-439-8522 or via email: mac@niven.cc.

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Mark GurnoW Mark Gurnow is a 37-year PGA member and general manager of Superstition Mountain Golf and Country Club and can be reached via email: mgurnow@superstitionmtngc.com

on the frontlines

Change! in an industry as steeped in tradition as golf, change can be a difficult and dreaded word, but one that’s necessary and should be embraced for the continued success of the game. As we look forward to a new year and contemplating what the future holds for private golf clubs, change is what comes to mind. The way consumers are engaging with the game has been shifting. At first glance, the National Golf Foundation’s 2017 annual report on participation doesn’t paint a pretty picture with the ever-familiar, no-growth refrain…but only upon first glance. This year the report included off-course participation - driving range and golf simulator type of activities - and there we see a whole new picture.

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hiTTinG The TarGeT

Statistics have been showing us for years that the new generation of golfer isn’t as interested in spending an entire day on the course or in the more formal, pardon my frankness, stuffy aspects of private club membership. Take a look at the recent partnership between the PGA of America and Topgolf. This is a great example of how the game needs to adapt to new trends and new generations of consumers. The partnership is a great opportunity to introduce golf to a wider demographic than ever before. If private clubs want to stay relevant, we must also look for ways to cater to the Gen X and Millennial golfer.

neW ideaS For GolF

Time is a precious commodity and one of our biggest competitors. We need to welcome new ideas for golf that will allow members to enjoy the game without a major time commitment. Clubs should consider offering rounds of fewer than 18 holes, new formats and easier rules. We need to put more fun into the game and not focus solely on challenging the expert golfer. At Superstition Mountain we have added a coursewithin-a-course on each of our signature golf courses. On Prospector we offer a par-3 course, and on Lost Gold an executive course with a par-62. In addition to a shorter play time, this allows the new and novice player to have a great experience on a Jack Nicklaus-designed golf course. As new courses are built, designers should consider how the space can be used for other activities such as Foot Golf, Disc or Frisbee golf and Arrow Golf. These options are more appealing to families and can be accommodated on traditional golf courses without damaging the greens, the game of golf or the integrity of the private club. neW cluB FuncTionS

Private clubs are evolving and should become a hub for family activities – both traditional and more unconven-

tional. We need to be your personal concierge, your limo service, dry cleaner, travel agent, kids’ activity zone and business center. Amped up spa, wellness and health areas and outstanding services that go above and beyond a country club are a key to maintaining family’s attention. And the more social, family focus is the future of our industry. You can see clubs already beginning to react to a shift in member priorities. A lot of recent club remodels have focused on adding work space with increased technology offerings, casual dining options and less formal event space and more family-focused programming. exciTinG chanGe

I believe the reverence and tradition around the great game of golf and private club membership should never change, but think the next five – 10 years will bring a lot more flexibility into the way clubs are run. This is an exciting time for our industry. I tell everyone that if I could read and write, I would get a real job. But in truth, there’s nothing I’d rather do than be in the golf business. The game has brought me a lot of joy and friends since I started playing at nine years old. I can’t wait to see what the future will bring. Br

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STeve GraveS

memBership COMMITTEE

Steve Graves is president and founder of Creative Golf Marketing. Creative Golf Marketing has been named “Membership Marketing Firm of the Year” for 16 of the last 18 years by The BoardRoom Magazine. Contact CGM via email at www.CreativeGolfMarketing.com or 800-526-8794.

How Do Clubs Handle Cognitive Dissonance? cog·ni·tive dis·so·nance (n) an individual who holds two or more contradictory ideas or values at the same time, especially as relating to behavioral decisions and attitude change. In our daily lives, there are many instances of cognitive dissonance. For example, you may love animals, and never dream of intentionally hurting an animal but you look forward to grilling a nice thick T-bone steak. While we may preach to our children to “watch their language”, there are times we as adults break down and express our frustration with a colorful dialogue of four-letter words. Private clubs across the country are also experiencing instances where their own attitudes and goals have been working against each other. Multiple policies and procedures that are contradictory to what the club portrays as its desired goals are barriers to accomplish those goals. For example, with one club in the New Jersey area, which was experiencing its own challenge with this conflict, it was evident that the lack of understanding of what drives and influences the modern-day family, was leading to decreasing membership sales and increased attrition as members explored alternative ways to spend their leisure income. A membership audit and analysis revealed that nearly 55 percent of the club’s entire membership was over the age of 65 with only seven percent under the age of 40. In addition, a recent satisfaction survey presented a common theme throughout: this private club needed a ‘shot of youth’ and, quite frankly, a significant number of younger members. Many members shared these philosophical views, consistent with those views shared by the club’s leadership. However, the club’s policies and procedures, formulated more than 50 years ago, were grossly inconsistent with the attitudes and goals of attracting younger families. A lack of behavior and attitudes consistent with the modern family, such as rules against certain clothing, participation on the board or committees, or not allowing new members to sponsor new members during their first year of membership, remained inconsistent with the attitudes and behavior of younger families. 76

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Numerous examples can be found and consistently enforced within club bylaws that we review and analyze on a daily basis. Specific references such as wearing yoga pants while having a couple of drinks in the bar, wearing a hat inside the clubhouse and not tucking in a shirt while on the golf course find their way into club communications. While a certain level of decorum is expected and requires enforcement, many of these rigid policies reflect out of date and antiquated rules that are counterintuitive to becoming relevant and desirable to younger members and their families. This doesn’t mean that societal values and customs have deteriorated, rather quite the opposite. Work places have become more casual and dining establishments have evolved to reflect a more casual, inviting environment, which appeals to a younger demographic. Another example inconsistent with the desire to attract younger families is a common provision that does not allow junior or intermediate members a right to vote on club issues, whether committee elections, membership policies or capital projects. If you do not allow a ‘seat at the table’ for younger members to become involved in the decision-making process that greatly impacts the club’s future, it’s difficult to move the club in anything but a less-than-relevant and progressive direction. When thinking about some of these examples, what outcomes and goals did these clubs desire? They spoke openly about their desire to provide a more family-friendly membership experience to attract more members, especially young families in and around their local community. But their actions were inconsistent with their beliefs and attitudes. Maybe it is time to not just ‘think outside the box,’ but time to get rid of the box altogether. Don’t be afraid to reevaluate your decision-making process in comparison to the short and long-term goals of your club. The world outside the private club industry is moving at light speed and, consequently, the club leadership needs to up their game in not being contradictory in their actions to their goals. Change, when managed properly, means survival in today’s club environment. Br

Mike PhelPS Mike Phelps is principal and co-founder of Pipeline, a membership marketing agency for private clubs. For more, visit pipeline-inc.com.

memBership COMMITTEE

New Member Onboarding

More Ripple Please

When you buy a Steinway grand piano, they will stage a private concert in your home with all the trimmings. Steinway helps with invitations, serves wine and hors d’oeuvres, provides valet parking and brings in a professionally trained concert pianist. it’s the best that piano will ever sound in the home. Not only does the private concert validate a significant purchase for its customers (grand pianos can range from $35,000 to well over $100,000), but it also creates a ripple effect among invited guests and their respective circles. It’s estimated that nearly one-third of all Steinways are purchased by people who have attended, or know someone who has attended a private concert. In marketing terms, a ripple effect is demonstrated by the growing influence or impact of a brand or message that begins with a single point of genesis and spreads among your target audiences. Like Steinway, clubs must consider new member onboarding to be the most important genesis point for creating a meaningful ripple effect. We all know the importance of new member onboarding. Most clubs host new member mixers and facilitate introductions to existing members and department heads. Indoctrination. Integration. Validation. Ultimately, this is done to influence retention of our new member. But new member onboarding can and should also benefit recruitment by helping to create buzz (positive awareness) and ultimately inspire referrals. Ripple. There is no more important time from a private club marketing perspective than a new member’s first 90 days. Whatever you decide to do for your new member onboarding program, the key is creating an experience that resonates outside the club too. Here are a few ripple-inspiring onboarding experiences to consider: 1. In addition to a new member mixer, what if the club hosts a party for each new member just for their invited guests. This is the time for the new members’ new club to shine. The more care and creativity, the bigger the ripple. 2. Load ‘em up with complimentary guest passes. Yes. Free. No strings attached. As many as you can. There is no better way to encourage a new member to use the club than to encourage them to bring their friends. And those friends are the ripple. Don’t stop at golf. Consider invites for lessons, special events, even free Sunday Brunch. Anything to get your new member to invite friends to join them at the club. Make sure that club staff address the new member and their guests by name. 3. Have you ever noticed that every Apple product comes with an Apple logo sticker? It’s a little thing, but specialty items for new members are a must. Members aren’t just buying into a lifestyle when they join a club, they are buying an identity. Make sure they have logoed hats, shirts, balls, etc. out of the gates.

There is no shortage of great ideas, but usually boils down to consistent execution. To help clubs with this, Pipeline has recently introduced new member onboarding software to help clubs assimilate new members, and help them create a ripple effect to generate more demand. Clubs need to re-examine every onboarding touchpoint to reduce friction, increase the frequency of communications, and offer a highly personalized experience filled with surprises, and that’s what we’ve found in developing this software. So, revisit your onboarding programs and challenge leadership and staff to rethink the experience throughout the journey and look for ways to create more ripple. Br

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rick coFFeY Rick Coffey – Product Management, Clubessential. Clubessential provides website, accounting/Point-of-Sale, CRM and reservations software which help private clubs operate more efficiently and effectively. www.clubessential.com

memBership COMMITTEE

Stockpiling Member Data is a Great Idea recently, while sitting in the membership committee meeting at my club, the discussion focused on incoming new members and why it’s always been so hard to do this process well. I listened as member after member gave their ideas on how we could do a better job acclimating a new member into the fabric of the club. Each idea had a common theme: someone could do a better job than others had done in the past. These kinds of ideas may be typical across the country when it comes to trying to help new members get to know their club better, and in some ways, may be partly true. As someone who consults with clubs coast to coast, here’s a different approach when it comes to onboarding, or really any other member related issue: stockpile member data. Obviously, a club has a certain amount of data about their members, namely the information found in your accounting system and website directory. I’m not speaking about contact information or spouse names, but about diving deeper and learning more personal information about your members so that more natural connections can be made. At the highest, psychological level why does someone join a private club? It’s because they want to be around other like-minded people who enjoy the same things they do and have a similar set of values. When you understand that notion, making the effort to collect information on member interests and values will take on a greater importance to you and your club. Here are some of the pieces of information the finest clubs across the country are collecting month after month: • Club interests: Which of your amenities does the member and their family enjoy using? • Background information: Where did they attend college? Where did they grow up? What industry are they in? • Preferences: What is their favorite beverage? Do they have any food allergies? Do they prefer to walk or ride on the course? Do they like to gamble? • Associations/charities: What things outside the club are important to them?

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There are two steps to this data collection: 1) Identifying what data you want to collect, and 2) determining how you will collect this information given the time and budget/staffing restrictions you have. The second piece, the “how”, is what typically stops clubs from taking on the task, but with technology and recognizing the value, more and more clubs are finding ways to get it done. If you gather a plethora of information available about not only the new member, but your entire current membership, there can be ample, more natural abilities to connect members during that very important time just after joining the club. For example, if your new member attended the University of Kentucky, you can quickly search your database for other members who are UK alumni and connect them in a more natural way. Similarly, if your new member likes to wager on the golf course, you certainly would have the ability to align that member with the proper group on the course. You can repeat this for any area of your club. It seems almost too simple, because these kinds of interests and backgrounds are what forms our relationships in our own lives. However, very few clubs have this type of information about their members. This type of member data will help you with more than just onboarding, it will help you keep members engaged, building tighter relationships. Most importantly, your retention numbers will certainly improve because there will be more of a true “club” feel from member to member, satisfying that natural desire when they joined. Ask your technology providers how they can help streamline the process for getting this valuable information. I promise, once your members see that you are wanting to learn more about them, they will certainly be eager to share more with you. Br

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roSie SlocuM

memBership COMMITTEE

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 https://www.facebook.com/BallenIsles

Marketing Matters “if you think marketing doesn’t work, consider the millions of americans that now think yogurt tastes good” - Joe l. Whitley The decision to market your club is a personal one. Some have their own ideas of why it’s significant to invest in a marketing plan while others get stuck in complacency, the principles of tradition and fear of the unknown. It’s important to look at the reasons why marketing is essential and consider it as an investment that will grow business while at the same time offering prospects another layer of information they are seeking about you and the brand image you represent. Lifestyle marketing with a call to action message is the most relevant type of promoting in the club industry. It offers the viewer a glimpse of what it is they can be a part of and hopefully, sparks their curiosity enough to make an inquiry. Modern digital technology offers many modules to

“Even when you are marketing to your entire audience or customer base, you are still simply speaking to a single human at any given time.” — Ann Handley choose from when getting your message out to the marketplace. Online ads, Facebook, Twitter, blogs, website content and website landing pages should be investigated for cost, management of the work, effectiveness and how it will fit into the expectations of the club’s strategic plan. In many instances, referrals are the primary source of how new members arrive at your club. While referrals may be a prospect’s initial introduction to the club, they will spend time online looking to confirm what they have been told. That’s why it’s equally imperative to maintain an online presence, even with those that have been referred. Many prospects conduct due diligence online before deciding. They want to know the clubs they are considering have the amenities they desire but also carry a strong message, offer the level of prestige they are looking for and are established. Prospects can come from a variety of sources including 80

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referrals, drive by, print ads, digital campaigns, online subscriptions, website, blogs, social networks, public relations and search engine optimization. It’s important to note when measuring where members come from, recording all sources by individual. Who and where you market should consist of targeted choices when developing a strategic plan. Analyzing where existing members come from by observing different geographical areas, seasonal trends, generational groups and wealth density will result in where marketing efforts are focused. Program performance should be constantly checked. Measuring lead traffic and social media growth with data analytics month-to-month will show hits or misses, uncovering any necessity to make changes in strategy. The marketing contribution and ROI can be difficult to measure. Frequently, the question is asked, “Did the paid effort deliver a return on investment?” You must decide what is measurable – allowing it to guide your plan to maximize efficiencies. Funding spent today could have an immediate impact or not for several years which needs to be explained. Multiple touches are necessary to convert a lead into a sale. In the club industry studies show that at least four touches are required to create a new member. This makes it difficult in allocating dollars to any particular touch. Programs affect each person differently so it’s challenging to measure which ones have the most impact. Once they join asking them to share that information will be helpful in determining what influencers are working effectively. There are outside factors such as economic developments and the weather, which are out of marketing’s control, that could affect program results. Whatever you put into your program, that’s what you’ll get out of it. If an effort is made to invest time and monetary resources in a marketing program that can be measured, you position yourself for success in the future. Elevating your overall program combination and trimming individual top-performers will increase growth. Modern technology gives you all the tools necessary to flourish. Optimize your reputation by garnering your share of the marketplace with programs that will enhance your brand and bring new members to your club! Br

JANUARY/FEBRUARY 2018 | BOARDROOM

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.

Coming Together for the Good of the Game The golf industry has joined together in recent years to help grow our great game, share its positive stories and messages and address areas of specific need. coordinating these industry-wide efforts remains one of the responsibilities of the World Golf Foundation.

To help introduce the game to new participants, the industry’s major golf organizations based in the United States have pledged to assist and support each other’s grow-the-game initiatives. These initiatives include Drive, Chip & Putt, Get Golf Ready, LPGA*USGA Girls Golf, PGA Junior League and The First Tee. These programs, supported by The Masters Tournament Foundation, LPGA, PGA of America, PGA TOUR and the USGA, have all seen record growth since this commitment was made in 2015. Since 2011, the number of youth golfers aged 6-17 has grown 20 percent to 2.9 million. It is not just youth who are coming to the sport. Since its inception in 2008, more than 500,000 students have participated in Get Golf Ready programs aimed at bringing adults to the game.

versity and caddies. For each of these efforts, task forces have been established with representatives throughout the industry lending their expertise as we endeavor to make golf look more like the rest of society. The Caddie Task Force, focused on creating new opportunities for youth to train and work as caddies, is in the process of being transitioned to the Western Golf Association, who will oversee these efforts as part of the Carry the Game program. The Junior Task Force is working on the American Development Model for golf, which will provide a framework for strategic decision making for golf instruction based on sport science, human develop-

The WGF also takes a leadership role in addressing specific areas of need within the game, specifically in the areas of women, Millennials, juniors, diversity and caddies. For each of these efforts, task forces have been established with representatives throughout the industry lending their expertise as we endeavor to make golf look more like the rest of society. These initiatives are varied as well. PGA Junior League and the Drive, Chip & Putt Championship are competition based, The First Tee uses golf as a platform to teach the valuable life skills that are intrinsic to the game and LPGA*USGA Girls Golf is aimed at introducing young ladies to the game. Another role of the World Golf Foundation is to advocate on behalf of the collective interests of the game and those involved in it. This is done primarily through We Are Golf and the Image of the Game program. The We Are Golf coalition advocates on behalf of the collective interests of the golf industry in such areas as tax reform, labor issues and environmental matters. Forbes Tate Partners, a well-respected lobbying firm, represents the industry in Washington, D.C. Additionally, the World Golf Foundation retains Buffalo Agency to help communicate the positive stories and messages associated with the sport. They focus on five key industry messages – economic impact, charitable impact, environmental impact, health and wellness benefits, and affordability and accessibility. The WGF also takes a leadership role in addressing specific areas of need within the game, specifically in the areas of women, Millennials, juniors, di82

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ment principles and data, rather than tradition and opinion. The Millennial Task Force is aimed at showcasing the game as “fun, young and cool”, while the Women’s Task Force is mapping out a strategy to increase participation in the game among women through changing its culture, as necessary, and by providing full access. The Diversity Task Force seeks to create greater opportunities to create more diversity in the game and business of golf in four areas: recreational play, competitive play, work force and suppliers. The game and business of golf has a bright future and much of that is due to a collaborative spirit within the industry. Br

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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

USPTA Offers Leadership Academy according to the 2016 Gallop news report, 87 percent of Millennials rate “professional or career growth and development opportunities” as important to them in a job.

While that statistic seems intuitive, it begs the question, “How can we provide that opportunity to our teaching professionals?” The United States Professional Tennis Association has developed a program to help fill that need. Hosted at the World Headquarters in Lake Nona, Florida, beginning in Spring 2018, the USPTA Leadership Academy will provide seasoned tennis teaching professionals with the skills needed to transition from teaching on the court into managerial roles. Designed like an intensive Masters Certificate program, the USPTA Leadership Academy offers 18 one-hour sessions on more than 18 topics ranging from human resources management, conflict management, presentation skills, and more. Learn skills from tennis experts such as USPTA Master Professionals Feisal Hassan and Ajay Pant. Both speakers started out as tennis teaching professionals and have worked their way to becoming a general manager or multidepartmental managers in successful entities. These instructors have experiences in different types of tennis employment and all share the common trait of being among today’s industry leaders. Aspiring tennis leaders will find the USPTA Leadership Academy useful in identifying the skills and abilities they should develop to become successful in the field, hopefully avoiding pitfalls and mistakes that most new managers make. Experienced tennis teaching professionals will be exposed to new concepts and trends in supervision, management, and leadership that they can utilize in

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their current and future positions. In addition, they will have opportunities to further develop their skills and “sharpen the tools” they already have in their tool box. Whether you work for a country club, commercial club, home owners’ association, municipality, or a resort, this intensive two-and-a-half-day program will provide an in-depth training of the skills and knowledge required for general manager and multi departmental manager positions within a club or organization. Each hour of this inaugural event includes mini-lectures, class discussions, and group presentations. Attendees will have the opportunity to work individually and in groups to solve real-life scenarios and day- today management issues. These sessions were created with the intent to challenge the critical thinking of the modern-day tennis-teaching professional, while offering them the ability to further their career on the management side. All participants who complete the USPTA Leadership Academy will be awarded a certificate that can be added to their resume or portfolio. Possessing this certificate from the USPTA Leadership Academy is one more indication that a teaching professional obtains the knowledge and experience to advance within their respective club if such opportunity should arise. Encourage your professional at your club to make an investment in their career by attending this unique opportunity. Br

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BreTT c. SchWarTZ

tennis COMMITTEE

Brett C. Schwartz is a USPTA Master Professional and the director of tennis at the New Orleans Lawn Tennis Club. He can be reached at 504-899-1574 or via email: bcschwartz7@yahoo.com

The Tennis Professional Is Your Most Valued Employee While the general manager is the most valuable employee, the tennis professional provides the best value per dollar spent. In addition, there are more than 20,000 certified tennis professionals. However, there is a shortage of quality tennis professionals, which compounds their value. There are several contributing factors in this analysis. First, most of the money made by the tennis professional is earned on the tennis court, not through salary. Secondly, the tennis pro services/interacts with a large number of members on a weekly basis. Lastly, although not always measurable, the tennis professional brings value to a club membership at a time when golf is struggling as a sport. The tennis professional’s salary varies greatly depending upon their responsibilities. Thus, salary can range from a small retainer for a staff professional who mostly teaches lessons to a higher num-

ber for a director of tennis who spends less time on the court and more time in the office. However, the final earnings of a tennis professional can be a number, which can be viewed as very significant. For example, an assistant professional who makes $20,000 in salary may actually earn $100,000 after lessons are added. However, the real cost to the club is his salary and benefits. In some cases, the club takes a percentage of lessons, so the real cost to the club in this situation is even lower. Assuming the real cost to the club is $20,000 that is about the salary range a maintenance employee would make. Thus, the focus shouldn’t be on the gross figure the tennis professional is being paid, but rather on the real cost to the club, because it is very low. Secondly, for the $20,000 salary the staff professional is paid they are performing assigned duties and is probably servicing/interacting with between 100 to 200 members a week because many of the lessons are group lessons. Some of the lessons are not the actual stock holding members, rather they are dependents, which increases the value of a membership further. If you have three staff professionals each being paid a $20,000 salary and a director of tennis being paid a $50,000 salary, then for $110,000 plus benefits, they are probably touching 600 members or their dependents a week. The maintenance worker isn’t interacting with hardly anyone each week. And you must remember the tennis professional creates relationships with members because most booking lessons attend on a weekly basis. Thus, these members are more apt to have a positive perception of, and stay loyal to, the club. But here’s the most important point of all – member loyalty at a small real cost to the club is a winning formula for any healthy club. Most people drop their memberships because of inactivity or a perception they are not getting enough value for their money. In a golf club where activity is declining, the tennis department is a real asset. The tennis professional can keep the recurring income (dues) flowing in. In addition, a healthy golf club (or tennis club) with an active tennis department, can charge higher dues because of a higher perceived value. If your tennis staff can do all of this at a small real cost, it shouldn’t matter what a tennis professional earns. In addition, the value proposition about which I am writing is slowly changing because there is a shortage of quality tennis professionals. Thus, if you have a good to above-average tennis professional, make sure their earnings are excellent because that professional is the most valued employee you have! Br

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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 basedgreens. He can be reached at (913) 706-6635 or via e-mail: daveistrc@hotmail.com Web page: www.istrc.com

Base Decisions on Science …Not Guess Work

Many years ago…in 1991… i was on a golf course with a very well known and respected superintendent on the day he was aerifying the greens. So, i asked him: Why are you aerifying? Being a country club member for many years, I never understood why the superintendent would tear up the greens in the spring and the fall when they were looking so good. If the greens needed to be destroyed for the shear enjoyment of the general manager and the superintendent why not destroy them in July or August when they were in bad shape anyway. If the GM and superintendent wanted to play Russian roulette with there job security twice a year that was their business, but why did they have to do it with my greens? When I asked my friend, the well-known superintendent, why he aerified, he responded: “I need to oxygenate the greens.” When I persisted, and asked how much oxygen he needed, there was complete silence. This same lack of knowledge in why we do some of the things that we do is still very common in our industry. It seems that we do them because it has always been done that way. Wow, what a waste of resources. Over the years while dealing with physical properties I have come to understand that we are only dealing with two things – solids and

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pore space. I don’t think that those two things are as complicated as I was led to believe by all the so-called experts back in the late 1980s. Solids are the sand granular and the pore space is the space between each granular or solid. Small pores hold water and the larger pores hold air. Roots cannot live in solids/granules and they cannot live in water, which brings us to the logical conclusion that our root system can only exist in the air pores of our greens, tees and fairways. In 1995 ISTRC’s independent research showed that the bent and Bermuda grasses of that time needed to have at least 15 percent of the total greens mass to be air pores. ISTRC’s later research showed that the air pores needed to be in the 18 to 20 percent 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. I like to 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 surface they desire. My friend, the well-known superintendent, would have been able to answer my original question (based on today’s science with an answer along the lines of: Based on the scientific results obtained from a study conducted by an independent soils lab, we know that our greens do not have enough air pores to support the oxygen needs of our grass. Therefore, I am removing some of the old material and replacing

dave doWninG David S. Downing II, CGCS is SE Agronomist and past president of GCSAA. He can be reached at: office: 843-365-8738 or cell: 843-241-7250 or via email: Dave.d@golfmsolutions.com

green COMMITTEE

Water, Water

…Too Much Water over the last 40 years i’ve learned a lot about water management, beginning when i first started working on a golf course and we had a manual quick coupler system, not an automatic irrigation system. We waited until we absolutely had to water because we would lose one and possibly two people from the crew for the next two and one-half days. They had to get some rest and be prepared to be up all-night watering. Slopes would not get watered effectively because the water ran off and the low areas would get too wet, but it was all we had. The first automatic systems allowed us to vary the run times and have multiple starts to help use water more effectively. And we also watered the dry areas more often and the wet areas less often. In the mid 1980s as we began to get more sophisticated with a central computer running the programs, we were also learning about ET, not extraterrestrial, but evapotranspiration. This is the measurement of how much water the grass plant uses based on solar radiation, wind, humidity and temperature. Computers allowed us to collect ET data – in inches of water – from a weather station connected to the system and then use that data to make irrigation decisions. We all know how our courses respond to varying amounts of rain, and now we can apply water, based on inches, to make it rain the “perfect amount.” In visiting 100 golf courses, my impressions are that not one course is using the computer system to its fullest ca-

it with new material that will increase our air pores and begin the process of providing more oxygen for our turf, enabling it to function in a more healthy state. No answers based on science were available to superintendents back in 1991, however they are now. Greens committees, owners, general managers and anyone who is responsible for making decisions concerning

pacity. In fact, every golf course watered the entire golf course every night based on minutes. I’ve asked most of the superintendents if it rained a halfinch of rain every Wednesday night, and if was a slow and steady rain, how often would they run the irrigation system. Most of them said, “I might have to water greens by Saturday depending on the weather.” Why do they not use the computer system to apply a half-inch of rain? The response is, they are “more comfortable using minutes and I am told to keep it green.” While we have this great tool, we do not have people teaching the superintendents how to use it. Their mentors watered by minutes and they have followed suit. We also are taught by our turfgrass professors to water deep and infrequently. Too much moisture in the soil has multiple negative impacts on the soil and turf health. Plants are too lush, need more fertilizers, need more fungicide sprays, need more ventings and aerifications, as compaction increases with more moisture in the soil. On top of this the oxygen in the soil is reduced and soil microbial activity is reduced thus creating more thatch and organic matter increases. This means even more moisture is held and the plant health will decline. Then when stresses come, like very hot temperature, high humidity, cold temperatures, additional traffic, scalping can occur as the organic layer swells! The moisture meter can help us make decisions about

greens is entitled to an answer that is based on science and not guess work. They should be asking questions such as: 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

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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 available to each course. Br

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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

Robots, Computers and Drones It’s the Future…Now

Golf course management has evolved significantly over the last several decades. While we still use traditional methods to cut the hole locations on greens, we’ve seen an increase in technology being used at quite a few courses. As always, it will take a few years for some of the technology to become commonplace but it is always wise learn and know now about technology that could be implemented at your golf courses soon. Robots: Major manufacturers have been using robotics for years to make the many pieces of mowing equipment, sprayers, tractors and transportation vehicles for the golf course. However, it is only recently that we have seen robot-driven mowers used on golf course greens. A case study by the USGA spells out the process with some very innovative mowing on the Cub Cadet RG3. This robotic greens mower (RG3) is taken out to a green (or set of greens) and ready to mow unattended. The operator who took the mower out to the green via trailer can do other necessary work that might include: • Changing the hole location • Fixing ball marks • Raking greenside bunkers Labor savings is the key here. It is the more efficient use of labor at the all-important start of the day ahead of golfers. The RG3 can be programmed to cut in different directions, as well as altering the cleanup pass to prevent stress on the outer edge of the greens. A wire at the perimeter keeps the units on the greens. Nearby multiple greens can be mowed with no need to load the units back up on trailers. At first the cost of these units is higher than we normally pay for a greensmower but if you take into consideration the efficiencies created there should be a shorter ROI for clubs purchasing them. We normally see one company doing the trailblazing but likely others will follow as it becomes more and more difficult to staff the golf courses around the country and the cost of labor and benefits continue to rise. Don’t be surprised to see robotics on sprayers and other mowing units soon as well. 90

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Computers: It wasn’t long ago that superintendents found it very difficult to get proper computer support for their offices, but now it is the norm to have one or more computers for the golf course operations department. Many no longer have multiple file cabinets and most of the recordkeeping is done and stored on computers and ‘in the cloud.’ The ability to be more efficient has never been truer than with modern computer support. Most are using laptops, tablets and iPhones to communicate, archive and store information. Originally, irrigation control units sent commands to water specific areas. Now we can go far beyond that with the system reporting back what did water, as well as efficiencies of the pumping plant and such. Computers have brought us a long way since the time of the night waterman! Labor is a large part of any golf course budget. Tracking labor and using it efficiently is the key to success. Today computers can help us with job assignment boards and allow us to calculate the exact costs for maintenance of specific areas like greens, tees and fairways. Materials used for pest control and plant nutrition can also be watched for inventory purposes and totals broken down by month and year. Think of it as the modernization such as point of sale systems in the clubhouse. TRIMS and Turfkeeper are a couple of systems that are being used by superintendents. Drones: I have learned a lot about drones from Bill Brown and Bob Vaughey in the past few years. New technology costs more in the beginning but over time quality improves and price goes down. Today the cost and ease of operation has gone down enough that quite a few superintendents have bought a unit for their golf courses. Drones can be used for: • Preservation of architectural state as of a certain date • Filming of projects • Ability to give information to the membership for club promotions • Material for upload onto the club website • Understanding of the many maintenance practices

• Footage for internal training of employees • Internal tournament footage Be aware that there some FAA restrictions for usage before buying units. However, there are also a few companies and services that will be happy to “fly” your golf course for a fee. Footage formerly only available via blimp or helicopter can now be done in house. Bob Vaughey used stationary cameras along with drones to archive the construction of Rolling Hills Golf Club. He sent out updates to the membership frequently which were much appreciated. Bill Brown originated tournament footage at TPC Sawgrass for The Players Championship. On a recent trip to China I saw helicopter drones being

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when to water more deeply. By using the tool daily to monitor the soil moisture and observing the plant health, the course superintendent can see when the plant is having some moisture stress, and then apply the water needed to water deeper and then let the soil dry out. Because the watering regime has not been promoting deep rooting we encourage the superintendents to begin this process at the beginning of the growing season to allow the plants to adapt to this change in water management. We know that soils, maintained constantly at 30 percent moisture and above, do not have the needed oxygen in the system for microbes and roots to thrive. By using inches and watering deeper and less often like when it rains we can save water and create a better environment for the grass to grow in. Combining the moisture meter readings, with ET data and the visual look of the grass we can now make even better decisions about when to water and how much to water. If water is run every night for 10 minutes on greens with 180-degree sprinklers, then they are on average receiving 2.8 inches of water a week. Even if the greens are watered three times per week at .50 inches this is a 50 percent reduction in water usage.

used for spraying agricultural fields and turf. A combination of robots/drone and GPS allows for spraying during wet conditions and accurate coverage without any waste or materials. FUTURE

Nobody knows what the future will bring. As you can see there are newer technologies that are evolving and at a much quicker pace than ever before. Now is the time to investigate these technologies and see if they will be a good fit for your club. Looking into the crystal ball I would think that these technologies will be commonplace at most courses within the next decade. BR

In my travels I see that most greens can get by with between .50 to 1.00 inches a week. Some areas on the greens may dry out faster but that is when hand watering with a hose on that spot is more effective than running all the sprinklers. On tees, fairways, roughs where full circle sprinklers are used the 70 minutes per week equates to 1.4 inches per week. Again, potentially double or triple the water needed. For clubs that must buy water, the savings can be substantial. Savings can be found in electric bills as well.

The bottom line is that most turf failures we see begin with too much water being applied. This impacts the golfer experience, and if turf failures occur it affects the bottom line as well. Using less water is a good start, as it leads to fewer inputs of fertilizers, amendments and chemicals. Reducing inputs saves money and is good business – also part of running a sustainable business. We have the tools to make much better decisions about when and how much to water. This is a win for the golfers, a win for the business and a win for the environment. BR

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CALEB CHRISTOPHER

TECHNOLOGY COMMITTEE

Caleb Christopher is the director of technical operations at Cino Ltd. He directs a team of Certified Ethical Hackers conducting remote and on-site cybersecurity and vulnerability assessments for clubs and other organizations across the country. He can be reached at: (516) 932-0317, ext. 305 or via email: caleb@cinoltd.com

Cybersecurity Series - Part I Network Segmentation

This series provides topical insights to instigate productive conversations for club boards. Bold keywords make excellent talking points with technical advisors. One thing I rarely have the pleasure of doing is tipping my hat to club IT departments or service providers for properly doing what’s called network segmentation. I’d really like to, but I find most organizations have “flat” networks, and most of those who have created network segments allow them all to talk to one another, voiding positive security implications. To understand what network segmentation is, how it works and why it’s important, we look at how your club is already doing this in another sense: you segment guests and various staff members from one another into different areas/buildings/offices by using doors with differently keyed locks to protect levels of access to appropriate persons. An unsegmented network is the digital equivalent of having your whole club use half-wall cubicles in an open-concept office space with no walls or offices. Proper network segmentation puts up digital walls and separates assets by role and trust level, just like we already do with people. Malware in an unsegmented network is like gossip in an open-concept office — it’s going to get around, and fast. Though it should be enough, malware isn’t the only reason to segment your network. A significant benefit of segmentation is scope reduction for regulatory and other compliance requirements. For example, if you take credit card payments (swipe, chip, or manually entering data), you’re required to comply with PCI92

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DSS. With proper segmentation, the stringent requirements of various compliance schemes can be limited in scope to just a few assets rather than every single device on your network. Advanced protective measures such as anti-keylogging software would be most practical and affordable if only deployed to a limited set of workstations used to enter sensitive data. Compliance is expensive, and that cost is often the impetus of scope reduction efforts. The security best practice is to have layered defenses. If someone breaks into one area, they shouldn’t have freedom to roam the entire network – they should have to work hard to break into each successive segment. Security is a process and not a destination, so we understand nothing is actually secure in a permanent sense. Therefore, difficulty is the key factor in effective security. The challenge is keeping information systems readily available for authorized users while making the systems very difficult to access or use for unauthorized users. Network segmentation is one of the fundamental components of adding difficulty for unauthorized users. A simplified sample network diagram shows how different segments all connect through a firewall/router. The firewall is the gatekeeper for all communication and uses Access Control Lists (ACLs) to allow/disallow communication between segments.

Advanced protective measures such as anti-keylogging software would be most practical and affordable if only deployed to a limited set of workstations used to enter sensitive data. Compliance is expensive, and that cost is often the impetus of scope reduction efforts. The security best practice is to have layered defenses. If someone breaks into one area, they shouldn’t have freedom to roam the entire network – they should have to work hard to break into each successive segment. Does someone on the guest network need to be able to discover/view the job history from the printer in your finance office? No way! So disallow it. Network segmentation and ACLs put the answers to this and many other important questions into action. Devices should be segmented by trust level, just like your club’s guests and staff. ACLs are the locked doors to your segments, which allow only authorized key holders to access portions of your network. Boards are responsible for making prudent decisions, and with all the security breaches in the news, there is little or no excuse for failing to proactively address cybersecurity.

Start the discussion in your club, and you may find you need a trusted advisor. I’d suggest one who has a stake in the success of your club or an external party who poses no conflict of interest when making recommendations about what project to pursue or product to purchase. Some organizations are beginning to subscribe to virtual or part-time CIOs, obtaining the expertise at a fraction of the cost of a full-time executive. I see this becoming the trend for small organizations who have regulatory compliance requirements. BR

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BILL BOOTHE

TECHNOLOGY PERSPECTIVE

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. During his 28 years in the club industry Bill has assisted more than 400 private clubs. Bill can be reached at bboothe@boothegroup.com.

Credit Cards and eChecks Some Concepts to Consider Does allowing club members to pay their monthly statements with a credit card make sense? There’s been a long tradition in the private club industry of prohibiting members from paying their monthly billing statements with a credit card. Of course, there are exceptions (especially city/athletic clubs with heavy business activity) but by and large, the industry has frowned upon this practice. Clubs haven’t wanted to pay the fees associated with credit card transactions and haven’t found a palatable way to pass those costs on to the membership. But the tide seems to be turning. Recently we’ve

Members go to the payment site to pay their statement balances, using a major brand credit card. The payment company then sends the payment information back to the club and credits the club’s bank account accordingly. The fees to the member range from two to three percent, depending upon the credit card used, with no fees to the club. Clubs using these services generally report great satisfaction with this no-cost and easy-touse service. Even if your club isn’t comfortable offering the service to your membership at large, you might consider using it just for delinquent accounts. It may be easier for a member to pay a past due account with a credit card than to cough up the cash for a large delinquent balance. Many clubs have reported success with this method of encouraging payment of past due amounts. So think about it. Maybe it’s time to consider some form of credit card payments at your club. What have you got to lose?

eCheck is the newest payment method to hit the club industry. The concept is pretty simple: instead of paying vendor invoices with a printed check or a virtual credit card (VCC), simply pay with an electronic check. Benefits to the club are huge. No costs or labor for printing, envelope stuffing, postage or mailing. eChecks are generated just like VCC payments, at a fraction of the cost of producing a manual check. Rates range from 50 cents to $1.00 a check. seen a growing number of clubs accepting credit card payments from members – in an innovative fashion. Here’s what’s new. There are now services available that make it easy for members to pay their statements online with a credit card. And the associated fees are charged directly to the members, not to the club. For members who are laser-focused on accumulating rewards points on their cards, this could be a nice service to offer. Credit card payment companies generally work with all of the major club management packages by placing a link on the club’s website.

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ECHECKS…A NEW TECHNOLOGY

eCheck is the newest payment method to hit the club industry. The concept is pretty simple: instead of paying vendor invoices with a printed check or a virtual credit card (VCC), simply pay with an electronic check. The eCheck is sent as a PDF to the vendor and contains all of the information that’s found on a printed check. The vendor simply prints out the eCheck and deposits it - just like they would with a printed check received by regular mail. Benefits to the club are huge. No costs or labor for printing, envelope stuffing, postage or mailing. eChecks are generated just like VCC payments, at a fraction of the cost of producing a manual check. Rates range from 50 cents to $1.00 a check. Fast, easy, inexpensive. Look for this technology to blossom in the next 12 months as an increasing number of banks and VCC processors add eChecks to their list of payment methods. BR

EXECUTIVE COMMITTEE

World Conference - See You in San Francisco! The Club Managers Association of America (CMAA) returns to San Francisco, CA, for its 91st World Conference on Club Management and the Club Business Expo, March 2-6.

Club management professionals from the U.S. and around the world attend the club industry’s largest annual gathering. This event offers five days of unparalleled professional development and education, networking opportunities, hospitality experiences, and the latest innovations in the industry showcased in the two-day expo. EDUCATION

In San Francisco, education will be showcased through more than 70 sessions, roundtables, and workshops during the week. The dynamic lineup of speakers includes first female Iron Chef, restaurateur, TV personality, author and lifestyle entrepreneur Cat Cora; Airbnb, head of global hospitality & strategy Chip Conley; Navy Seal and leadership expert Curt Cronin; speaker, author and entrepreneur Isaac Lidsky; chairman and senior vice president of Cakebread Cellars Dennis Cakebread, and professional golfers Kay Cockerill and Juli Inkster.

club management professionals to truly immerse themselves in the industry and become the most effective managers possible. THE CLUB BUSINESS EXPO

The two-day Club Business Expo remains one of the hospitality industry’s fastest growing shows. Explore the products and services offered by more than 250 companies showcasing industry leading trends and innovations. Nearly every product and service that a club management professional can purchase for their club is showcased in the Expo. Meet face-to-face to discuss potential purchases. Take advantage of the interactive areas throughout the hall as well as the featured clubhouse live programming. NETWORKING

World Conference will offer a number of networking opportunities. First up is The Club Foundation’s Party with a Purpose on Saturday, March 3. Attendees will enjoy a healthy mix of philanthropy and fun while partying the night away. Taking place at a new, later time, this event offers lively networking, high-energy dancing, and excitement while giving back to The Club Foundation. The Networking Event on Monday, March 5 will be hosted at the St. Francis Yacht Club, located on the shores of San Francisco Bay. Attendees will create stronger connections with the new contacts and reconnect with old friends during this annual networking event with a view. Stunning scenery will be paired with food and entertainment to match. NEW FEATURES

The manager education sessions have been carefully selected to meet the current needs and interests across the 10 competencies required for success in our profession. Each conference speaker brings a different and exciting element to the table – allowing club management professionals to experience and learn from a diverse panel of leaders. Conference continues to be the industry event to attend, providing the information and experiences necessary for

This year’s conference features two new fitness opportunities, fueled by The Club Foundation. Attendees can attend pre-education yoga or cardio, or opt in to participate in the event-long walking challenge. CMAA welcomes all individuals in the club industry to attend and has provided a variety of Conference registration options to meet all schedules and budgets. BR To learn more and view the complete list of educational offerings, visit cmaa.org/conference.

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JEREMY HOCH 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. During the past 15 years Jeremy has worked with hundreds of clubs. He can be reached at Jeremy@anchorcs.com.

TECHNOLOGY COMMITTEE

What Software Manuals? Turnover is inevitable, even for our best employees.

When key employees leave our clubs some very important information goes with them, especially information about the operation of the club management software. All too often, clubs turn to their software vendors to temporarily help accomplish daily, weekly and monthly tasks. But, this is not necessarily a good idea. The support lines at software companies are designed for quick fix and programming calls, not necessarily in-depth training sessions to walk you through routine tasks. This reality can be a source of major frustration for both clients and vendors alike. Software vendors can tell you how the software is supposed to work, but the key employee you just lost knew how the software actually worked for your club! Here are a few predicaments clubs faced because of staff turnover: 1. A club kept their initiation fee schedules in an Excel file. When a new controller arrived, they did not know to look for this sheet and initiation fees were not billed for close to six months. 2. A club has a complex minimum structure. When a key employee left, no one at the club was available to answer members’ questions about their minimum balances. 3. A club lost a F&B supervisor and no one new how to add POS daily specials and update pricing on existing items. 4. A club lost a key golf shop employee in charge of receiving and counting inventory. It took the club several months to put everything back in balance. What is a club to do? The easiest way to minimize the effect of employee turnover on your software is to document everything. You already have job descriptions for key employees now go one level further and document their daily, weekly, monthly and annual processes related to your club management software. 96

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Once these are tasks are identified and organized, start to create standard operating procedures (SOPs) for each of the tasks. These task specific manuals should be combinations of both text and screenshots and can be created very simply using Microsoft Word. The screenshots are simple to insert by using a free tool in windows called “Snipping Tool.” This will allow you to write a few lines of text and then reinforce the instructions with images. Simply add arrows and text boxes to your manuals to highlight certain items. These should be written by your staff and include bullet points and explanations of each step and why it is important to your club. Your software vendor can supply general documentation but your custom manuals will become the best “How To” guides you have ever seen. Imagine these scenarios in your future: • A new AR clerk starts and they can simply take a full color manual off the shelf and know exactly what they need to accomplish on a regular basis. • A new F&B supervisor starts and they can start setting up new sales items and daily specials on their very first day regardless of their software experience. • A new controller starts and knows exactly which financial reports need to be printed and distributed in preparation of their first board meeting. Now, imagine having this level of documentation for all departments that use your club management software! This will show extreme organization and professionalism to your new employee and create a great first impression. Take your time and try only to create a couple of manuals each month. This may take up to a year (or more) to document all tasks for all departments, but you’ve set your club up for success for years to come. Create a rotating schedule to review the documentation. Tasks do change and as vendors update their software, the images in your manuals should be updated as well. These changes don’t come too rapidly so perhaps create a schedule where each document is reviewed every 18 to 24 months. Keeping, and maintaining these manuals will keep your club running efficiently and will reduce the knowledge loss when key employees leave your club. BR

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CASE STUDY | SLIMFOLD GRILLS

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.

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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

SPORTS SOLUTIONS, INC. Since 1984, Sports Solutions, Inc. has been the pioneer and leader in the development of superior quality body care amenity lines specifically designed for the Olympic athletes' dry hair and skin due to their active life styles. Today, we provide all necessary accessories for a facility's locker room, spa, or bathroom needs. Visit www.sportssolutionsinc.com

CASE STUDY

Sports Solutions® is Your Full-Service Amenity Provider We have the creative and design capabilities to manufacture custom amenity presentations to enhance the beauty and improve the security of your club’s shower and vanity amenities. Sports Solutions creates the industry’s largest selections of bulk, specially formulated personal care liquids, designed to rehydrate Olympic athletes’ skin and hair. Dispensing systems and vanity accessories come in a huge array of styles. We also offer our own patented, magnetic locking and non-locking, standard dispensers, and nonlocking deluxe Acrylic Dispensers in multiple colors. We also offer beautiful dispensing options in metal, resin, wood, stone, ceramic, acrylic, and stainless steel. Prestigious custom Corian® bottle covers, brackets, accessories, and organizers create beautiful amenity presentations for your shower and vanity amenities, and beverage service stations. These custom Corian® organizers create a handsome, orderly display for your locker room accessories, and fit your club’s vanity colors, dimensions, and specific products. Corian® bottle covers and shower brackets hold 16, 18, 32, and custom 35oz. bottles. We carry

over 100 Corian® colors that will coordinate with any club’s granite or marble counter tops. NEW METAL TOP PUMPS

To upgrade the look of your club’s amenity presentations, we are pleased to offer new metal top pumps in seven colors. These metal pump tops fit our 16oz. Slimline Corian® presentations, as well as our 16oz. bottle and bracket designs (in locking and non-locking styles), which enhance your club’s image and décor. For the showers, these new metal pumps can be used with our Corian® designs for 16oz. bottles and brackets. We can custom logo your desired presentations on durable “outdoor signage” vinyls, guaranteed to last five to seven years, and available in all colors and metallics. Corian® pieces can also be laser etched with precision, in silver, gold, or any one color. BR

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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.

INNOVATIVE IDEAS

Foundation Has Been Giving Back To Club Employees for Almost 70 Years

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Amy B e rgq u ist

Current and past BHYC employees who meet the For almost seven decades, The Bay Head Yacht Club (BHYC) Foundation has been giving back to employees and the Bay Head community of requirements for eligibility must submit an essay and participate in interviews with the foundation’s comNew Jersey. mittee. They must also provide the foundation’s Founded in 1949 as the BHYC Welfare Fund, the non-profit arm of committee with their college transcripts. the club began with a cocktail party, a fundraiser suggested by then Amy Bergquist, another recent recipient currently Vice Commodore George Patterson. His goal: to help club members majoring in athletic training at East Stroudsburg Uniwho had experienced catastrophic health events, which resulted in versity, East Stroudsburg, PA, is grateful for the supdire financial difficulties. port that’s helped her to excel. “[The foundation’s] The foundation has since evolved to assist both current and financial gift helped me concentrate on what is impast employees, as well the broader Bay Head community, and portant and assisted in allowing me to be one step the local Bay Head School. A club member serves as the foundacloser to my goal. I am proud to say that I have fintion’s board chairperson and the foundation’s committee is comished this semester with straight As, and am looking prised of member volunteers. The foundation is a non-profit forward to applying myself in the same way during organization supported entirely by donations from the club’s the next semester.” membership. The club’s first fundraising soiree nearly 70 years Funds raised are used primarily for education grants for staffers. ago has evolved into the club’s annual Bubbles Show, In the past year alone, 54 Bay Head Yacht Club employees received the foundation’s primary fundraising event. Beloved scholarship grants, totaling $86,400 in support from the nonby members, the variety and talent show is an allprofit. Jamie Gilmore, a student at Loyola University who is majormember effort, with a new theme each year. ing in elementary education, said, “I am so thankful for this Organizing and performing members hold two scholarship and for the people – employees, managers, co-workers weeks of rehearsals before presenting their two-day and members – that make working at the club so enjoyable.” show. Attending members support the effort with tickThe foundation continues to enhance the club experience for staff ets sales and all proceeds from the event go to the and members alike. It serves as a personal bridge between employBHYC Foundation’s fund. ees and club members, in addition to providing an incentive for em“The Bubbles Show is the highlight of the summer ployees to stay on at the club long-term. Applicants must have for our members. They make sure their children can worked at the club for a minimum of 400 work hours or they must take vacations that week and that they are in their be willing to reach that minimum in future. “It lets members and our shore homes for the event of the season. Being such team members connect on a more personal level, and that boosts a great tradition, it’s a don’t miss event!” concluded morale for everyone,” says Holly Bilotti, the club’s general manager. Bilotti. BR

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INNOVATIVE IDEAS

Using Snap Chat to Promote Club Events and Create Users located in the club or at a desSocial media is changing the way we communicate and even the way ignated location, for example, can acwe receive our news. cess the club-themed filters. He’s able Using this to its advantage, Champions Run Country Club in Omaha, Nebraska has to choose the dates and times when introduced a fun way for members to share their club experiences with their friends Snap Chat filters appear and are availand online community. This innovative program helps promote the club’s focus on fun able for use in the app. activities and events, using their members as a way to seed interest in the organization. “Our members love Snap Chat filSnap Chat has become a particular favorite for young people. Using geolocation, ters because it offers a fun and unique Snap Chat app users can share images or short videos (called Live Stories) in the moperspective of our club. We also crement, letting their friends know what they’re doing, and often, where they are. These ate them for swim meets at other images and shares disappear “in a snap” so the forum is quite immediate. country clubs. Recently, we designed a Snap Chat filters are a favorite feature. In essence, they are themed photo custom filter for a swim team visit to a frames or graphics that users can apply to photos and videos they’ve uploaded to competing club. It was called “The the app. These can be silly or serious, but overall, they are meant to be fun and inKrakens Invade Field Club.” We set the ventive. location at the opposing country club. Champions Run began creating custom filters for special events and the club’s Our junior members loved it!” said members love it! Snap Chat users can share pictures taken at the club and at club Lorenzen, who creates as many as events, using a specially designed filter from the club. three to four new Snap Chat filters They simply snap a picture, scroll through and choose a Champions Run filter during the peak summer season, and and then share with friends. It’s a great way for members to promote the club one to two new filters per month through social media without even realizing they are doing it. throughout the remainder of the year. The club has its own Snap Chat account to “follow” its members, so they’re able An unexpected result? It’s not just to see and keep all the wonderful pictures and videos that their members are the junior members of the club that posting online. The club is building a store of fantastic, member-created photo have been enjoying them. Adult and collateral that they use in their year-end video montage. Often, they use their app even senior members have been sharaccount to re-post and share the very best “snaps” with the club’s Snap Chat ing pictures on Snap Chat. “The memfriends and followers. bership loves to use the custom The club’s Creative Director and Director of Aquatics and Fitness, Ben Lorenzen, filters! Not a lot of businesses use creates the filters in Photoshop in less than 15 minutes and then uploads them to Snap Chat filters, so this gives us an the Snap Chat website. The app charges per use for filters, but on the administrative edge and sets us apart from other side, the club can set up a budget cap and parameters for filter use. clubs and businesses,” said Molly Dunning, the club’s member relations coordinator. The most popular filters have been ones designed for the club’s swim meets and holiday events. The Memorial Day, Fourth of July, and Labor Day Snap Chat filters were highly popular amongst the club’s membership. They’ve also created filters for weddings, special events, or to promote Snap Chat exclusive specials at the club, such as free drinks or popsicles. BR JANUARY/FEBRUARY 2018 | BOARDROOM

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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.

INNOVATIVE IDEAS

Summer Internship Program Creates Tomorrow’s Industry Professionals The Cherokee Town and Country Club is helping undergraduate students build their resumes and professional skills through a robust summer internship program in Atlanta. This Georgia club sees a new round of summer interns from May through August each year, welcoming juniors, seniors and hospitality program graduates from across the country. Interns gain valuable skills while experiencing the private club work environment, to see if it’s the right fit for their career. The club pays for their furnished housing at a nearby apartment complex, similar to college dormitories. All internships are full-time and the students are paid for their work, though they may also achieve college credit, depending on their academic program. Students’ internship experience begins before they arrive in Georgia with a welcome packet that provides them with information about Atlanta, expectations for the summer program, and a welcome gift to take with them into the Cherokee family. Upon arrival, the club organizes a welcome activity and social outing to make each season’s interns feel at home. First-year students are tasked with running the day-to-day snack bar operations, while upper-level students are eligible for managerial roles. Often, they supervise the snack bar operations and are tasked with food ordering, hiring and staff scheduling. Cross-departmental training opportunities exist for those wanting to explore the various aspects of club life. Each intern is required to spend time working in several departments, but they can choose the ones of most significant interest. They also determine the amount of time spent in each. Interns gain valuable knowledge by either “shadowing” a department head for a half or full day or by conducting interviews with department

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managers to familiarize themselves with the responsibilities of each role. Graduates are eligible for the club’s two-year Manager in Development (MID) program, designed for those students keen on a career in the industry. “We have been very fortunate to have hired some great people to be in our intern program. Some have gone on to be a part of our MID program, been made managers and are now GMs at clubs across the country,” noted Cherokee’s general manager, Michael Wheeler. The club’s membership is proud of the role that Cherokee takes in developing the next generation of club managers. Club members look forward to getting to know the interns throughout the summer. “Members remember our interns as they have an impact on their families. They make their summers memorable and ask all the time where they are in their careers after they leave,” said Wheeler. Cherokee continues to improve and refine its internship program. Biweekly meetings have been added during which interns discuss leadership, goals, club culture and share in educational readings. Interns leave the programs with an understanding of club culture, as well as practical knowledge of the club’s software programs, point of sale, food inventory systems, payroll, budgeting and forecasting. The cross-training program makes the entire club operation accessible to interns. In addition to the supervisory experience they gain, interns attend local chapter meetings and tour area clubs. At the close of the summer season, the club management organizes a farewell dinner to complete the summer experience. “The experience and insight gained are invaluable to their future, whether they choose to remain in the private club industry, or choose another career path,” said Wheeler. BR

INNOVATIVE IDEAS

A Convenient Shuttle Service Adds Tremendous Value Located in the heart of the community, the Oklahoma City Golf & Country Club recently passengers who’ve enjoyed a few too introduced a convenient shuttle service for members, and it’s adding tremendous value. many of the drinks provided in the cooler. Members can sign on for local promotional trips arranged by the club, or they Members can book charters and recan charter the luxury vehicle for their small group. It’s been a boon for memserve seats for club events through the bers wanting to attend local basketball games, OU and OSU football games, club’s special events coordinator. The downtown events, concerts, and more. club charges $75 per hour for shuttle The shuttle seats 12 passengers and comes equipped with a flat-screen TV, use with a two-hour minimum. AlterBluetooth connectivity, surround sound, a built-in cooler and a luggage comnatively, members can charter it for a partment. The club has planned local sightseeing tours, including visits to the full 8-hour day for $550. It’s well Holiday Light Show in Nichols Hills and in nearby Yukon. worth the price. The club staff didn’t miss an opportunity to over-deliver on member expectaStaffers stock the built-in cooler tions, serving champagne, eggnog, as well as complimentary cookies and hot with members’ favorite beverages, ancocoa for the junior members onboard. ticipating their needs by adding phone “The members absolutely love it!” says Valeria Mejia, an employee at the Oklachargers, umbrellas, towels, Kleenex, homa City Golf & Country Club. When the club hosts large functions – like wedand Advil, depending on the trip. dings, gala dinners and holiday season events – they can see as many as “If they have a need, we want to 600-700 people. On these occasions, they ask their employees to park off-site, make sure they’re taken of,” notes then they transport team members back and forth, freeing up parking spaces at Mejia, who says the overall feedback the club for guests and visitors. has been excellent to this new valueMembers have booked the shuttle for unique outings. They’ve transported added service to members. It offers bridesmaids and groomsmen on a wedding day, they’ve gathered together for safety, convenience, and fun. BR book club excursions, airport pick-ups, theatre performances, symphony concerts, and museum visits. One member recently chartered the shuttle to take friends and family to a local, beloved fried chicken joint. A group recently chartered the shuttle to visit the star of Pioneer Woman, whose ranch in Tulsa serves as the set for her program on the Food Network. For members having drinks at the club, the shuttle has been great for safe, impromptu trips that leave members free to enjoy their evening without having to worry about driving. For older members, the shuttle has been especially convenient during the winter months when the roads are icy and dangerous. Younger members frequently charter the shuttle to attend NBA Thunder games and college basketball games at the nearby University of Oklahoma campus in Norman. Mejia said, “The Thunder have put Oklahoma on the map, so anytime there’s a home game, younger members meet at the club and take the shuttle. They don’t have to work out valet parking; they can go out afterward. They arrange for a pick-up and drop-off spot with the shuttle driver.” The club is fortunate to have a security staffer with experience working for a shuttle service. He has not only the appropriate driver’s license for a vehicle of this size, but he also taught the club’s other staffers (who occasionally take on driving responsibilities) some key considerations. Given his previous training, he is well versed in hospitality on the bus, how to deal with emergencies, illness, parking, driving in downtown traffic, ensuring member safety when embarking and disembarking, as well as how to handle JANUARY/FEBRUARY 2018 | BOARDROOM

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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.

INNOVATIVE IDEAS

Make Learning Fun!

A Program Focused on Knowledge-Building Exercises for Staff Food and Beverage Director Paul Demay is livening up the pre-shift meeting for his team at Sailfish Point with fun, interactive learning games to motivate and reward his staff for their excellent product, club and member knowledge. Modeled after popular games like Pictionary, Jeopardy and Wheel of Fortune, the program helps staffers to absorb information throughout the year, but especially in the buildup to high-season when 75 percent of this private island community’s membership arrives to enjoy the balmy winter weather of Stuart, Florida. The club compiles and updates a database known as the “member bible” that details the club members’ preferences for drinks, menu items, table choices and more. Using this as a reference, Demay handily creates games that include flashcards, wheels and word puzzles. In one iteration, he asks staff to match member names to member photos. The games help his team to recognize members when they come to the club for lunch or dinner. Successful staffers earn gift certificates to local shops and theaters, movie tickets, snacks, or “Sailfish bucks”, which are accepted around the club. This on-going staff education program also tests staff on food, bar and wine list knowledge, as well as the club’s policies and procedures. Demay sets aside about 15 minutes in the pre-service staff meeting to review his team members’ knowledge, ensuring they stay abreast of the latest information and product knowledge.

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“The members’ feedback has been 100 percent favorable and some members have even approached me to add in their suggestions and be part of the fun,” remarked Demay. With so many seasonal members, it’s especially important to focus on learning about their club’s membership at the kick-off to the winter season, with its influx of member arrivals that begin as early as October. With 521 homes in this member-owned community, the club has more than 1,000 members and a lot of new faces each year. For perspective, the Sailfish Point keeps 10 to 12 food and beverage staff year-round, but that number jumps to approximately 50 team members for the winter months. With so many newcomers, both members and staff, it’s a valuable tool to get everyone up to speed quickly. “It’s very team-building and a fun way to reinforce what they’ve learned,” notes Demay. BR

from Membership Musings | 62

I remember when, as social chairs, my husband and I changed the annual Children’s Christmas Party format from the club buying a substantial gift for each child, to the child bringing a toy to donate to the Toys for Tots program. There were some members who were up in arms, but a funny thing happened at the annual party. To a one, the children delighted in bringing their donated toy up to Santa and in return, each child received a small brass ornament with the club’s logo, the year, and his/her name engraved. In this case, the child led the parent and the program continues to this day. Lifestyle support – A HarleyDavidson is more than a motorcycle. Apple is more than a smartphone. And a fan of Guy Fieri is more than a wannabe chef. Cult brands don’t sell products or services; they support a lifestyle. By definition, this is what clubs are created to do. Dick Brunner, CCM, COO Emeritus of the University Club at Michigan State University, always said that clubs are in the business of raising members’ standard of living. I would agree. If we think back to Maslow’s Hierarchy of Needs that we all learned in sociology, clubs build a road to selfactualizations. And isn’t this the definition of what a cult brand is supposed to do. Why some people are unabashedly loyal to a brand is still a mystery to marketers. And why they will ink the brand logo onto themselves is a bigger mystery. So, while your club may have very loyal members, I’d wager that not one of them is going to brand their skin with its logo. You’ll have to settle for selling them a logoed shirt, golf bag or tennis racket cover. Your bottom line will thank you. B R

CASE STUDY | RCS HOSPITALITY GROUP

Training Reduces Turnover BY WHiTNEY REid PENNELL

If you’re experiencing a hiring crunch, you’re not alone. A shrinking labor pool and increased employment opportunities elsewhere has led to strident competition for staff nationwide. Promoting from within is one possible solution to this challenge. The Center for America Progress estimates that the cost of replacing an employee is approximately 20 percent of his or her salary. These costs include hiring, onboarding, training, ramp time to peak productivity, and lost engagement from others due to high turnover, increased errors, and culture impacts. A $50,000 position will run the company $10,000 in replacement costs. You can see how promoting from within can be attractive! Consistent training can help you create an environment where ambitious staff thrives, allowing you to cherry pick your all-stars into management positions. Employees are more likely to stay with a company that provides training and opportunities for growth. According to the Pew Research Center’s 2016 report on “The State of American Jobs,” 47 percent of hospitality employees perceive training and skills development as an essential part of work life, but only 28 percent have received it. The concept is simple: an employee feels valued when the club visibly and deliberately invests in their future. When someone feels valued, they reciprocate by feeling increased loyalty and a greater sense of purpose. Invest in training, and reap the rewards of continued growth. BR

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

TRIBAL MAGIC

Delivering “Big Spank” to Appraisal Angst APPRAISAL ANGST Managers and supervisors hate doing employee appraisals. They take preparation. They lead to confrontation. They involve disappointment. They can be dull as a rock. They’re awkward, time consuming and, more often than not, unproductive. Appraisals are twitch-inducing stressors for both the giver and the taker. They’re a demon, a “must do” nobody wants to do. And they generate …appraisal angst. Too bad, because it needn’t be so. Why Spank the Angst??? Appraisals are a buzz for those who believe in the why of appraisals and have mastered the how of doing appraisals right! “Those Who Believe” know that appraisals are an opportunity to build relationships, strengthen the team, improve the operation, stimulate the brain and contribute big bucks to the bottom line. Believers know– Appraisal angst deserves The Big Spank!!! Those who’ve drunk the appraisal Kool-Aid will tell you that daily, monthly and annual appraisals are a “must do” because… Appraisals force the appraiser to look closely and think deeply about the who, the what, the how and the why of the operation. Appraisals create, strengthen and enlarge supervisor-staff relationships through meaningful conversation. Appraisals improve staff morale by letting staffers know how they’re doing and why “what they’re doing” is important and appreciated. Appraisals are an opportunity for managers and supervisors to transfer the buzz (enthusiasm), the love (caring) and the glow (laughter) to employees and by doing so, bind individuals to the team with emotional rope. Appraisals are an opportunity to preach philosophy … to explain the why of the operation and the values embedded in the why. Appraisals are an opportunity to coach, to teach the tactics that need doing to direct, correct and improve performance. Appraisals are an opportunity to mentor, to give advice and insight to employees when it comes time for them, the employee, to make a personal or professional decision. Appraisals outline a “pathway to progress” for employees and motivate them to “get moving.” Appraisals are an opportunity to establish individual and departmental goals and to clarify the metrics that’ll be used to monitor performance. 106

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And finally, appraisals are an opportunity to purge the losers who suck the energy out of the day-to-day, discourage the enthused and stimulates the nay sayers. Assessments enlarge and enrich both the personal and the professional journey for the assessor and the assessed. Done right, appraisals are a huge “bottom line plus” for the operation. So, the angst needs to get spanked! TOOLS OF SPANK Appraisers need tools to do appraisals right. Acceptance: Accept that appraisals are important and productive, necessary and fun. Accept that appraisals are interactive and an opportunity to connect and reflect. Accept that appraisals help establish you as leader. Accept that appraisals are an unending, seamless process – continuous, incremental and forever. Frequency: Appraisals should be done often because frequency makes them easier to do and more effective. The SMART Template: A template’s needed which documents the principles valued by the operation (example: give happiness), the practices needed to achieve those values (example: look people in the eye, smile and say hello), and SMART metrics (specific, measurable, achievable and time related) to be used for measuring the execution of the principles and the practices. The Yak: Appraisers need to be facilitators of conversation. They need to stimulate and sustain conversation. They need to ask questions, listen intently, expand on the comments made, then ask more detailed “thin sliced” questions. Appraisers need to keep the conversation flowing. The Story: Successful appraisals are built on stories well told. Every comment, suggestion or insight needs a story to back it up and “make it real.” The Time and The Place: The appraiser needs a “no distractions allowed” place and time to allow “deep focus” and open discussion. The Scribble: The appraiser and the appraised need a notepad and pen to jot down issues and ideas to address and act on in the future. Documentation: The appraiser needs a way of recording insights and observations so that those insights and observations can be referred to as “benchmarks” for discussion in the future. Once these tools are assembled, the reviewing can begin! The daily operational appraisals: Appraisers who do appraisals right are doing operational, task-oriented appraisals

three times a day. These daily “while you’re doing the job” coaching appraisals are “deep operational” with the appraiser observing, commenting, affirming, correcting and explaining. Here are the big three: The start of shift “this is what’ll be important today” appraisal. The appraiser/supervisor gathers the troops, explains what’s happening that day, outlines expectations and comments on the strengths and weaknesses of the team as they prepare for battle. And the appraisal gets done – painlessly. The walk and talk coaching appraisal. The most powerful tool for operational appraisals is nothing more complicated than walking the floor, observing behavior, speaking to the employee, telling them what they’re doing right and wrong, showing them how to correct and improve, giving praise where it’s deserved and explaining the why of what they’re doing. The walk and talk is “in the trenches” coaching. Feedback is personal, direct and immediate. And the appraisal gets done – painlessly. The end of shift appraisal. At the end of each shift the team should gather and reflect on the day’s effort. The supervisor leads the discussion with a simple question: “What did we do right today, and what could we have done better?” People talk. The supervisor comments. Things get critiqued. And the appraisal gets done – painlessly. The monthly “budget review” appraisal: Assuming the financial statements come out monthly, the manager/supervisor gathers the department immediately after publication for a formal “walk through” of the one-page “Summary Financials”, line item by line item. The numbers reveal “performance” and both provoke and direct in-depth discussion, the assumptions/expectations behind the budget are reviewed, the results examined in light of the budget and “corrective tactics” are plotted for the future. This is both a group appraisal and an “all organization” appraisal that builds “team” and inspires performance. The monthly “alone-time-with-pappa” appraisal: Every employee wants personal time with the big cheese to talk off-the-cuff about whatever it is that concerns them that month. This required once-a-month supervisor-employee “alone time with pappa” ap-

praisal is nothing more than a 30-minute sit-down with each employee to talk about anything and everything, undirected, unfocused, simply “get to know you and your issues better” time. And the appraisal gets done – painlessly. The annual “values alignment” appraisal: Unlike traditional end-of-year “checklist appraisals” that cover operational issues (which should be covered daily) and money issues (which should be covered at a separate meeting), the “values alignment end of year appraisal” is all about talking lots and going deep into personal, professional and organizational values The review template changes each year, perhaps a personal SWOT analysis one year, a “stay-or-be-gone interview” the next, a “how do I want to be judged as a professional” in another. These reviews are not spontaneous. The template’s designed and given in advance, the appraiser and the employee both write them up appraisals, then the two come together, compare their answers for the templates and discuss “re-alignment” as necessary to ensure that both are “values driven” in the same direction. Note: money shouldn’t be discussed at the annual appraisal because raises are contingent on lots of factors other than the employee’s performance. Besides, if money’s discussed, nothing else will be heard or absorbed!!! SPANK THE ANGST

Appraisal angst is a demon that needs to get spanked. If managers and supervisors understand and believe in the why of appraisals, if they assemble the tools needed to do appraisals right and if they do daily, monthly and annual appraisals consistently, then the angst will get spanked! And once the spanking’s been done, start appraising and, Enjoy the journey!!! BR

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LYNNE LAFOND DELUCA

CULINARY & CATERING

The Association of Club Catering Professionals National Conference will be held August 19-21, 2018 in Napa Valley, CA. Register at www.TheACCP.com. You can also contact Lynne at Lynne@TheACCP.com

The Most Important Investment You Can Make team. She said they were definitely “in a rut” before attending the conference and came back to the club on fire, full of great ideas and All of these are important in keeping our clubs up-to-date, exciting, the best part… excited about their jobs again. It fun, efficient, and a place our members want to be and call home. However, the most important aspect of your club that sometimes is in was music to my ears. Education not only provides the critical need of a little (or a lot) of attention is commonly overlooked, and that tools for performing our jobs well but it is is the people. also a great motivator. Many clubs have realAs we know, our members and our employees make our clubs what ized the importance of continuing, education they are. So, time to make an investment in the one thing that can and not only have a baseline of education for bring the greatest return. Happy, well-educated employees create all departments, but also extra incentives that amazing experiences and moments for our members. employees can earn based on performance. If education and training is not in your budget, it’s about time that it is. You might want to budget by department in order to take care of all aspects of the club. I am a firm believer in I’ve seen first-hand what an impact this can have. Professional, welltrained and happy employees usually stay at the club, providing a ‘what you focus on you will achieve.’ sense of family and great experiences for members. Searching for a reI have seen clubs change literally placement is costly and disruptive to the membership. Recently I had a conversation with a club manager who attended our overnight when event and catering recent ACCP National Conference and brought along her events and catering team. The club manager called me after the conference to professionals participate in thank me for the incredible experience and also for re-invigorating her

We make lots of investments in our clubs – capital projects including renovations, expansions, upgraded technology and new equipment.

our education, attend the national conference and start using not only the association, but each other, as resources. There is no lack of great education available in our industry. From the ACCP for events and catering (both member and private events) to membership associations, the PGA, USTA, CMAA and NCA, your bases are covered. I am a firm believer in ‘what you focus on you will achieve.’ I have seen clubs change literally overnight when event and catering professionals participate in our education, attend the national conference and start using not only the association, but each other, as resources. BR 108

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from Global Perspectives | 66

from Legislative Committee | 68

family-first activities and farm-to-table food sourcing. As with past generations, certain truths will be borne out for Millennials. Private clubs will be most important to Millennials as they reach the child-rearing years when they want personalized instruction and safe havens for those dear to them. Joining fees will be difficult so clubs must find reasonable solutions for inviting new members – Millennials – to join. Like generations before them, Millennials are still young enough that they often have invested most heavily in education, housing and careerlaunching. Funds for initiation fees are limited and clubs must find tactics that resonate with this new demographic.

These changes can help stop merchandise and food from walking out the back door. Pay special attention to liquor storage and access. Underage drinking issues can result in significant problems and liabilities for your club. Consider all operating areas where policies can help protect the club. Potential areas of focus include segregation of duties (dual review or approval bank and account records, approving check runs), electronic banking (how wires are approved and how they are not), physical plant (restricting employee entrances, bags and lockers), inventory (tracking, double counting), and ordering and contracting policies (management approved vendors or dual approval of invoices). The club should have thorough and recurrent employee training, in which employees are reminded of the club’s zero tolerance poilcies. Make these policies clear in the employee training and handbook. There are many policies that the club can put in place to avoid employee fraud and theft. Each club should regularly review its policies to ensure the club is protected. BR

Brand and brand management will be new tasks for board members and club managers. Private clubs are often among the most brand reliant businesses in town. And, they are often the least brand savvy businesses. Club leaders and managers have sometimes overlooked the power of a club’s brand. Clubs that become brand experts will enjoy newfound competitive advantage in 2018. Superior standards of operation, energetic and accessible family activities and innovative programs will give outdated brands new life. Since 2011 a flight to quality has become a primary point of importance for new club members. When asked to invest substantial joining fees, new members look for quality as an indicator of value. This trend has rewarded top-performing clubs and managers while punishing those mired in mediocrity. For private clubs, 2018 can be a good year filled with increased engagement, relevance and new members when new communications, member recruitment and brand management are implemented. B R

Robyn Nordin Stowell is an attorney at Sherman & Howard in Scottsdale, Arizona. Robyn can be reached at (480) 624-2736 or rstowell@shermanhoward.com. Ned McCrory is managing partner of CPA firm, Batchelor Frechette McCrory. Ned can be reached at (401) 709-3032 or nmccrory@bfmmcpa.com. Robyn and Ned are teaching on Advanced Issues in Employee Theft and Fraud at CMAA’s National Conference.

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from Executive Committee | 34

It is crucial that we as an industry unlearn old habits and embrace the changing landscape of the club business and evolution of private club members’ needs, so we can thrive, attracting new talent to the industry and new members to the clubs we serve. We all know the statistics on multigenerational memberships and an increasingly technological workforce. More digital nomads and mobile workers – your potential members – are needing a place to hang their hat for a few hours and get some work done, and yet some clubs still discourage ‘work papers’ in the dining room. This policy does not fit with today’s modern member. Norman Vincent Peele says, “Change your thoughts and you change your world.” There’s truth in that. Only if we can change and align our business, mental, and measurement models can we experience a true transformation. BR

from Club Facts and Figures | 44

ownership and estimate income and expenses by carefully weighing past performance and recognizing current trends. A “guesstimate” is not acceptable. No quicker way exists for the management team to lose creditability than not being able to justify the numbers in the budget with hard data. The next step is to determine the expense estimates for all non-revenue departments under management’s control and responsibility. While the historical cost from prior years is usually the base point, a fresh eye should be given each year to determine if any of the expenses can be reduced or eliminated entirely, or whether certain expenses incurred are for the benefit of only a few members. Once the preliminary departmental budgets are complete and approved by the manager, the controller should combine all the information for use by the budget committee. This must be a realistic plan containing a monthly estimate of revenue by department, planned cost and expense ratios, and an expected profit or loss realization from each department. Once the operating budget is approved, the capital improvement projects needed for the period must be included. Although many clubs have a separate long-term budget for capital improvements, the cost expected to be incurred in the short term should be rolled into the master budget. The budget committee forecasts the anticipated dues 112

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revenue for the year and, if appropriate, recommends an increase in dues to balance the budget. Without a detailed budget, dues increases often are difficult to justify. The master budget is submitted to the board for approval or revision. If the budget process is followed and all excess costs and revenue are considered, the board must realize that if it cuts the budget, the level of service the members can expected will be impacted. Once approved, the whole team must buy into the budget. The board must give its support, management must do its best to implement, and the club cannot allow members or committees to by-pass the process and commit the club to expenses that have not been approved. As with any business, the effectiveness of the budget process depends on the people involved. Variances, either positive or negative should be reviewed and an explanation sought. A failure to follow-up and to hold people accountable makes it a useless exercise. The budget should act as a measuring stick for monthto-month operations. It is an aid to enable the board and management to evaluate the financial direction of the club and the effectiveness of the club in meeting the needs and desires of its members and to make adjustments as necessary. BR

from Leadership Momentum | 18

sumptions have contributed to the decline of many other country clubs. People at those clubs also thought that their championship golf course or state-of-the-art golf performance center alone would sell memberships, and like us, they too, were impacted by the recession. But, promoting memberships in this way assumes that joining a club like ours is a logical decision. There is nothing logical about writing a check for $85,000 and then spending $15,000 per year on dues, plus goods and services. If it were logical, no one would join. People join country clubs because they want to belong to a community of individuals with similar beliefs and interests. It is primarily an emotional decision, and not necessarily a logical one. So, what exactly are we selling? Let’s be clear: We are not in the business of selling memberships. We are in the business of selling community. Prospective members talk about buying things such as access to a clubhouse dining room or golf course, but what they really want to buy into is a community with likeminded others. The activities and amenities are just the details surrounding how to experience community and fellowship, which enriches their relationships and personal connections throughout their lives. The fundamental building blocks of the club community is the need to belong to a group with common interests and a basic alignment of core values among the members. Naturally, people want to be with others who share an interest in the same activities, like golf, tennis or other specific social activities. They seek out a drive that supports their values. We, in the club business, tend to focus on externals, such as buildings, amenities, golf courses and the “state-of-the-art” of whatever you just built. They all facilitate relationships – during golf on the courses, during dinner in the clubhouse, or while at the pool, or on the paddle courts, etc. – which satisfies the psyche’s need for connection with other people, a need for relationships and community. These relationships are the ultimate magnet for new members and the glue of member loyalty. My mentor used to say that bricks and mortar attract, but do not sustain. We must remember that in the final analysis, the sense of community wins. After all, we have to remember who founded Medinah and what they were: Shriners – a fraternal society, based on fun, fellowship, and the Masonic principles of brotherly love, relief, and truth (as defined by Shriners International). And while today only a few Medinah members re-

main affiliated with the Shriners, many of these Shriner values resonate with our current membership. You don’t believe me? Last year, we bid farewell to a few longtime members who had to resign for financial reasons. One member was a strong believer in the “members ONLY join because of the golf courses” mindset. But on the evening of his going-away party, surrounded by his family and friends, he wept, as did most everyone else. During the evening, I approached him, gave him a hug, told him I was going to miss him, and then asked if he was going to miss the golf courses. “No,” he said teary-eyed, “It’s not the golf courses I’m going to miss, it’s all of my friends. This is the hardest thing for me to accept.” I’m sure you will agree that if, for whatever reason, you had to leave Medinah, or any other club, after 10-plus years, your friends will be the biggest reason why you, too, will weep as you say goodbye. This shouldn’t be a surprise. A person’s need to belong is very strong. It’s a feeling we get when we surround ourselves with people whom we truly care about. While this particular member realized the importance of community, not all members do. We are still in the process of fully transitioning to a value proposition focused on selling community. While some of the membership may as yet be unaware, the management team has come to fully embrace this concept, and it has been a driving force for many of the decisions we have made and continue to make. The golf experience at Medinah has never been better. But, the chicken coop, the vegetable garden, the food truck, and the skating rink are also markers and symbols of community. Trust me, we didn’t need more eggs! Does this concept resonate with you? Do you subscribe to this concept? Is this something your club might embrace as you begin to educate and inform your membership? If so, make sure you rethink how you “package” your club. Craft messages that focus on community first, and amenities second. For Medinah, time was of the essence. The board and many among our membership have begun to understand and embrace these concepts, which was critical to our investments in how we approached improving our amenities, always with growing our community in mind. We are confident that our approach will reap benefits as we continue to strive to grow our membership, retaining our vibrant community as well as our traditions. While modest, and still in the midst of Phase two of our clubhouse renovation and construction, we are already experiencing positive membership results. BR

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from BoardRoom and Beyond | 14

Selection: Your application process must be streamlined so you can track applications and input resume vitals into a database that has reliable information from which to mine. Too often we gather applications and resumes from a variety of untested sources, scan them with no consistent vetting, grade them for next steps (interview, save or discard), and then move to the interview stage with our selected few without creating a valuable recruiting source that this information can provide. Interview everyone that is a good candidate whether you are hiring or not. You want to ensure that you are not missing out on any superstars. Get all your current leaders involved from their perspective. Interview three times – first with lower level managers, second with directors or department heads and finally with the general manager and the selection committee. By that third interview, you know if you have found the right superstar for you. This may seem like a lengthy process, but you want to ensure that the person you hire will fit your culture of excellence and be a right fit for the position. Orientation and Onboarding: The new teammate orientation and onboarding should consist of not only a full campus tour but a full day of introduction: an introduction to the team, to your club’s culture and history, a comprehensive review of rules and regulations, and the club’s vision and mission or branding. It is vital that each new hire has all the tools necessary to succeed. If an employee leaves or fails because of a lack of resources, that is the club’s fault. Culture Setting: The orientation is the blocking and tackling. Culture setting takes place when the team has a clear understanding of the club’s mission, vision and core values. The teammate must have an internal understanding of why they work at the club, who they work for and why they love what they are doing. Training and Development: Training and development is the heart of a successful organization. The seriousness and consistency of how your organization trains and develops its team is the key to a strong reputation which in turn leads to being viewed as a great place to work and a hard place to leave. Recognition & Retention: Making sure your team understands that it’s part of your culture to recognize the great work that they do. This is as an invaluable tool to ensure their tenure and long-term enjoyment. There are hundreds of programs and ways to make sure you do it. The 114

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important thing is to create a culture that makes the leadership team daily seek out opportunities to give positive feedback to your team and thank each team member for being the most important part of what makes you great. This quote has always said it all about Recognition: “Take away my people, but leave my factories, and soon grass will grow on the factory floors…take away my factories, but leave my people and soon we will have a new and better factory.” – Andrew Carnegie Feedback: This is very important for all levels. You must have an open-door communication policy among the team members. A lot of organizations talk about open door policies, but you must create a culture that truly believes it. Expect all members of leadership to be connected with their team always. The leadership team should be very approachable. Meetings should be an open dialogue where everyone contributes, and no one is made to feel as if their opinion is not important. Create a vehicle for employee feedback and ideas on any club related item, not just their department and reward them if their ideas are used. Create a goal and incentive program heavily based on what peers have to say about one another’s performance. This develops trust, confidence, accountability and a clearer picture of where you are as a team, where individuals are in their growth and in which direction you are moving. Although we are not big fans of a lot of club committees, the one place where we feel we may have missed the boat is in establishing a human resource committee that’s a standing committee of every board. With all the human resource talent clubs have within their membership, it is of the upmost importance to tap into the Fortune 500 human resource leaders to help ensure that their club is always putting its best foot forward in the “war on talent.” The committee should be breaking down the club’s teammate lifecycle comparing their processes to those of large well-run public companies. This will only help clubs gain better teammates, become an employer of choice and have greater retention. No business or we should say no successful business is currently resting on its laurels when it comes to employee engagement. Part II of this series will cover: 3. Engage Your Team 4. Cultivate Your Team and 5. Challenge Your Team. BR Thomas B. Wallace III, CCM is a partner with Kopplin Kuebler & Wallace. He can be reached at: Tom@kkandw.com Sam Lindsley is a consulting & search executive with Kopplin Kuebler & Wallace specializing in food and beverage operations. Sam can be contacted at (216) 509-2250 and at: sam@kkandw.com

from Publisher’s Perspectives | 10

typically because the expectations were not clearly defined at the very beginning,” offered Dick Kopplin, partner in one of the industry’s leading consulting firms. “Was there an agreement as to which issues needed focus and how was progress monitored?” he queried. “I am often surprised when asked, that a club president admits not having a regular review with the general manager to see if expectations are being met. It is really incumbent upon the general manager to ensure that communication channels are always wide open and working with the club president. “When we are told that a longtenured general manager – eight years and beyond – has been released, it is often because the GM has become too comfortable or the board had a serious change in philosophy. “Some GMs continue to follow the same routines and don’t pay attention to the latest trends in governance/leadership. For example, today’s younger board members want the data to support their decisions… not just anecdotal reports. “General managers should continually inform board members about best industry practices and invite them to any educational sessions which will support the general manager concept,” Kopplin observed. Jerry McCoy, another industry consultant and educator with BoardRoom Institute, takes the issue back to four major areas of qualification that search committees look for in a general manager. They are: Leadership – Can the GM/COO inspire the staff to deliver excellent products and services?

ative new programming that provides high value and satisfaction? Operational management – Is the GM/COO able to manage the budget to get maximum value for the member dues? Hospitality – Does the GM/COO have a pleasing personality and treat all member, staff and guests with dignity and respect? Are they a positive face of the club? SKILLS ARE NEEDED

“Unfortunately, most individuals don’t excel in all of these areas. But if you are to be a great GM you need skills in each,” explained McCoy. “It is very important that there is a clear understanding of expectations. Only through a comprehensive review system, regular communications and clear goals and objectives can both the leadership and management be on the same page.

“The problem in the club industry is that many clubs do not do a good job of setting standards and monitoring performance against those standards,” McCoy added. “Goals and objectives have to be achievable and realistic. They should have a system for tracking completion and progress. To do this effectively takes effort on behalf of the leadership, and an insistence by the GM/COO that it is done in regular intervals throughout the year. Each GM should insist that if the leadership has a problem then discuss it. Don’t wait till the end of the year when the problem could have been corrected immediately,” McCoy opined. “So, to the question – Do clubs show the GM to the door too quickly? Probably, but the responsibility lays in some part on both the board and the general manager. If the GM insists on a process and

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Vision and creativity – Does the GM/COO have the vision to help direct the club strategically in the areas of capital investment, member growth and retention, policy/rules or new services? Are they able to deliver creJANUARY/FEBRUARY 2018 | BOARDROOM

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there is regular feedback, and if the board puts in the time and effort, the problem will diminish. The problem begins at the beginning. “The old saying … ‘there is a manager for every club and a club for every manager’ but every manager isn’t for every club and every club isn’t for every manager. Clubs hire the wrong person. GMs accept the wrong job. Some GMs live in the past, do not grow and need to go,” McCoy said. But McCoy says, sometimes a general manager can be saved – at least for a while. “A while ago we had the opportunity to work with a club to complete an operating audit and then to work with the GM to fine tune his skills and implement the 40 plus audit initiatives. “They (the board) decided that because of his tenure and the fact that he was well liked by the members that it was in the club’s best interest to try to help him succeed. “It worked and today he is a new man with a whole different perspective. The board has new respect for him and it appears the club is significantly better off for the process. Now that is unique. How many times have you seen a club go to the extra effort to help their GM instead of just pitching them out and starting over?” McCoy queried. “The club saved a considerable amount of money by not having to make a major personnel change. Unfortunately, that’s not the end of the story because two years later the club did make a change. But at least they tried.” As we’ve suggested, sometimes there are valid reasons why a club makes a change in its leadership. Simultaneously, the club must consider the potential impact of making a change, and consider whether or not the change really addresses the underlying reasons for making a change. “An experienced private club general manager recently commented that many club managers leave clubs after serving for two to three presidents,” outlined Joe Abely and Dave Duval, principals in Club Board Professionals, a strategic financial consulting and training firm. “General managers find themselves in a no-win situation without solid, documented plans and good succession planning as the tide turns against the views espoused by the first few presidents. Perhaps this explains why the average general manager’s tenure is three to five years. The timeframe certainly supports his assertions,” the partners suggested. They say private club boards should completely evaluate the reasons for making changes in the GM position or when a qualified general manager departs, including: • Does the board have an actionable strategic plan that addresses the club’s future financial sustainability? If so, is the general manager fully informed and given the freedom and resources to execute the plan?

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• Does the club have a funded long-term financial plan? Is the club funding its depreciation and keeping up with the preservation of its facilities? • Does the board, in concert with the general manager, approve an annual budget consistent with a long-term, fully-funded financial plan and then allow the general manager and their team to execute without interference? • Does the club conduct periodic independent membership satisfaction surveys? If so, does the board evaluate and address reasons behind any prevailing dissatisfaction? • Does the board benchmark compensation programs and financial results with those of an appropriate set of peer clubs? • During performance reviews, does the board focus on key goals such as financial performance, execution of the strategic plan, membership satisfaction, member retention, team building and completion of capital projects or does it get too far into the weeds? Even if there are valid reasons for making a change, how will it affect the club… the member experience, the board, the members and employees? And does the change really address the underlying reasons for getting rid of a GM? Also, the impact and implications of the change, according to Abely and Duval, are many. “Finding a replacement is not easy. General managers (and other top management positions in private clubs) are not commodities that are easily interchangeable. Clubs need to consider the club’s culture and how the candidate fits the culture,” they added. “For clubs without a succession plan, the cost and time involved in a search can be substantial. There will be decreased productivity resulting from an open position, and with many GMs satisfied in their current positions, the number of highly qualified candidates for your club may be fewer than you think. “And no matter how good a candidate is on paper or in interviews, there’s always a risk a new GM will not work out,” espoused Abely and Duval. A general manager’s termination can also create uncertainty with other managers and staff, which can result in additional turnover. Did the departing GM enjoy popularity with the club’s general membership? There’s always the potential for membership dissatisfaction because of the changes in familiar faces. What does the change mean for the implementation of strategic and long-term capital plans critical to the club’s long-term sustainability? “It puts these plans at risk, and the turnover at the general manager’s position can magnify that risk.”

PUBLISHER’S FINAL THOUGHTS

Firing your GM/COO and hiring a new GM is one of the most difficult decisions a board can make. And some boards, after deciding to fire their GM, realize just how hard it is to replace them. I’ve seen some boards give up replacing their GM, rather deciding that the board can manage and oversee the entire club operations. Last year I joined a country club in California’s Orange County. My first choice happened to be a club down the street. But I made the decision to go elsewhere after learning that the board had fired the GM and board members decided to run the club themselves. Instead I joined a club 20 miles away, because a competent general manager was running the club, with no micromanaging from the club’s board. A year and half later, the club, being run by the board has raised its dues, has had an assessment and continues to face membership issues. My club hasn’t raised dues for the third consecutive year, there have been no assessments and the club has over a million dollars in the bank. The result? Initiation fees are going up and sold out.

The board should also consider its part in GM/COO failure at a club. To reiterate: 1. does the club have a strategic plan? 2. did the board communicate its expectations to the GM/COO? 3. did the board hire the right GM/COO based on the club’s strategic plan? 4. Was there a proper yearly review of the club’s and general manager’s performance and how it aligned with the strategic plan? 5. Was the board supportive and did the board offer constructive feedback? 6. does the board have the expertise needed to make the effective decisions, and 7. did the club provide a proper board orientation? i believe points one, three and six are extremely important, and there’s no question number six is the most common, because often many boards members lack the expertise needed to make effective decisions for the club and its membership. By the way, boards running the club isn’t unheard of...not that that’s a good thing. However, we’ll be discussing the pros and cons of a board-run club in our next publisher’s perspective. John G. Fornaro, publisher

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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.

Leading the Club of the Future Are You Thirsty for More?

You’ve had a busy day at work. Now you want to connect with friends and colleagues, enjoy some social time and maybe catch a bite to eat. But you’ve got to watch your email for an important meeting. You’ve got to be ready for a business call. You need to stay connected, in case your wife is not able to get the kids. So do you really have time for a private club? Staying in touch with the upwardly-mobile future members is how clubs will survive. The old-line clubs, where your last three generations of family belonged, is a given. They have that internal familiar marketing for them as part of your life. But what do clubs do that are not of that old lineage? How do they become part of a busy mid-career person’s lifestyle? Flexibility is the key. Here in San Francisco, the “new wealth” of the tech industry seems to have an approach to this demographic of potential future club members figured out. In San Francisco, the Battery Club, barely one year old, was referred to recently in the New York Times as a transition from the hippy days of communing, to a community comfortable with velvet stanchions. It does not look like the social clubs of the past in this old-line city, with bourbon and cigars, playing cards and speaking softly. This club has cultivated a diverse community by reaching initially into the art and music industry for members. The Battery Club supposedly is based on the culture of the London society social clubs like Soho or the Hospital Club. Very upscale-hip and cool. The initiation process looks specifically for interesting people. Mind you, not wealth or powerful, but interesting people to talk to. Members who will be fun for the club and fun to socialize with. Definitely technologically forward, with limited dress codes and wide diversity. Still with cozy places and good drinks.

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Now other clubs like the Modernist have also laid claim to the new social wave in town. They both seem like they are offering the alternative to the old-line clubs in town. The truth is, San Francisco is becoming its own private, exclusive club just because of the cost of living. In any case, there seems to be a resurgence of creating and recreating the club experience. While visiting the University of San Francisco recently I was joined by a group of young local club managers, trying to convince a small class of business majors to consider avenues in hospitality work, through the club business. When asked what makes the club business so special, one of my co-presenters said it’s because the club is a place where you know everyone, they take good care of you, the staff knows your name and your preferences and all your friends are there. Like the gist of the NY Times article, “…it’s nice to go to a place where it’s a friendly atmosphere and you’re part of something.” So, is your club ready? Is it holding true to being the destination? The last decade has brought so much for clubs from fitness to casual dining trends to technological acceptance, but is that enough? Are these new clubs of the future reaching deeper into the emotions of younger, hipper, jet-set style members? They really have created a new feel - a belonging that it’s okay to hang out and check emails, cruise the bar for friends and engage in new relationships and discussions. Staying relevant by offering the cozy, communal space these clubs are geared for, sure seems prevalent. Golf may have made the private country clubs of the past but it will be casual communing, drinking, dining and social activities that are making the club of the future, the club of now. This all makes me thirsty. Lead ON! BR

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denehy . . . . . . . . . . . . . . . . . . . . . . . . 41 distinguished Clubs . . . . . . . . . . 110-111 duffy’s Tri-C-Club . . . . . . . . . . . . . . . 87 EA Photography . . . . . . . . . . . . . . . . 63 Eustis Chair . . . . . . . . . . . . . . . . . . . . .75 Ez Links . . . . . . . . . . . . . . . . . . . . . . . 121 FOOd-TRAk . . . . . . . . . . . . . . . . . . . . . .2 Gasser Chairs . . . . . . . . . . . . . . . . 52-53 GMS . . . . . . . . . . . . . . . . . . . . . . . . . . 120 GCSAA . . . . . . . . . . . . . . . . . . . . . . . . .127 GSi Executive Search . . . . . . . . . . . . 67 HFTP . . . . . . . . . . . . . . . . . . . . . . 25 & 49 High End Uniforms . . . . . . . . . . . . . . 97 Hilda Allen . . . . . . . . . . . . . . . . . . . . 109 HiNT . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Hollman . . . . . . . . . . . . . . . . . . . . . . . 67 image design . . . . . . . . . . . . . . . . . . . 83

Judd Brown designs . . . . . . . . . . . . .69 kECamps . . . . . . . . . . . . . . . . . . . . . . . 61 kopplin kuebler & Wallace . . . . . . . .31 Lichten Craig . . . . . . . . . . . . . . . . . . . . 3 Luxury Golf Tours . . . . . . . . . . . . . . . . 5 MAi . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 McMahon Group . . . . . . . . . . . . . . . . 17 Northstar . . . . . . . . . . . . . . . . . . . . . 128 Peacock + Lewis . . . . . . . . . . . . . . . . .81 PGA . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Polar . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Procraft . . . . . . . . . . . . . . . . . . . . . . . .85 Proform . . . . . . . . . . . . . . . . . . . . . . . 117 Rogers McCagg . . . . . . . . . . . . . . . . . 85 RSM . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Salsbury . . . . . . . . . . . . . . . . . . . . . . 120 SES Lighting . . . . . . . . . . . . . . . . . . . . . 7

Signera . . . . . . . . . . . . . . . . . . . . . . . . 121 Slimfold Grills . . . . . . . . . . . . . . . . . . 98 Something different . . . . . . . . . . . . 63 Spring . . . . . . . . . . . . . . . . . . . . . . . . . 39 Sports Solutions . . . . . . . . . . . . . . . . 99 Stratton Crooke . . . . . . . . . . . . . . . .107 St Timothy . . . . . . . . . . . . . . . . . . . . 120 TAi Club Management Software . .121 Talent + . . . . . . . . . . . . . . . . . . . . . . . .87 Troon . . . . . . . . . . . . . . . . . . . . . . . . . . 47 TrustEdge . . . . . . . . . . . . . . . . . . . . . . 93 USPTA . . . . . . . . . . . . . . . . . . . . . . . . . 57 WebTec . . . . . . . . . . . . . . . . . . . . . . . . 33 xHiBTz . . . . . . . . . . . . . . . . . . . . . . . . 23

BOARDROOM MAGAZINE COUNTRY CLUB INDEX Brian Beland, CMC, executive chef, Country Club of detroit, detroit, Mi keith Berk, president, Northmoor Country Club, Chicago, iL Chris Boettcher, CCM, CCE, GM/COO, Burlingame Country Club near San Francisco, CA Tom Brunts, president, Country Club at Castle Pines, Castle Rock, CO Cleve Christophe, presidents, Thornblade Club, Greer, SC Rocco diina, president, The Buffalo Club, Buffalo NY Lou diLorenzo, president, interlachen Country Club, Edina, MN ken donovan, president, Fiddler’s Elbow Country Club, Bedminster, NJ Garth Elliott, president, Randpark Golf Club, Randpark, SA don Emery, general manager, Riviera Country Club, Los Angeles, CA Leroy Franklin, athletic director and head strength and conditioning coach, Sweetwater Country Club, Sugarland, Tx

doug Green, president, the Polo Club of Boca Raton, FL Mark Gurnow, GM Superstition Mountain Golf and Country Club, Gold Canyon, Az Robert Gusella, CCE, GM/COO, Belle Haven Country Club, Alexandria, VA Peter Hoffman, president, Southward Ho Country Club, Bayshore, NY Steve irvin, president, St. Andrews Country Club, Boca Raton, FL Ray kayne, president, Tara iti Golf Club, Mangawhai, New zealand dr. Bonnie knutson, the Country Club of Lansing and the Michigan Athletic Club George Lantz, president, Glenmoor Country Club, Englewood, CO John Lyngaas, president, Grey Oaks Country Club, Naples, FL

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The BoardRoom magazine

CELEBR ATING 22 YEARS OF EDUC ATING THE PRIVATE CLUB INDUSTRY ISSUE 274

VOLUME XXII JANUARY/FEBRUARY

Volume XXII, Jan uar y/Febr uar y 2 018

Keith Berk

Northmoor Country Club

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