Th e Bo a rd Ro o m ma ga zin e
CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 269
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VOLUME XXI MARCH/APRIL
Vo lume XXI, Ma rch /A p ril 2017
10 | PUBLISHER’S PERSPECTIVE 26 | LIFETIME ACHIEVEMENT 36 | BOARDROOM AWARDS 86 | TRIBAL MAGIC
The Private Club Industry and Affiliated Associations
Leaders in F&B Innovation
MICHAEL S. WHEELER, CCE, CCM
MATT MCKINNEY, CCM
JAY DIPIETRO, CCM
ROBERT E. JONES, CCM, CCE
MICHAEL G. LEEMHUIS, CCM, CCE, PGA
COO and General Manager Cherokee Town & Country Club Atlanta, GA
COO and General Manager Capital City Club Atlanta, GA
President and General Manager Boca West Country Club Boca Raton, FL
COO and General Manager Desert Mountain Club Scottsdale, AZ
President Ocean Reef Club Key Largo, FL
CRAIG L. LOPES
BRAD JENCKS
NICK SIDORAKIS, CCM
PHIL KIESTER, CCM
BRETT MORRIS
General Manager The Moorings Yacht & Country Club Vero Beach, FL
General Manager Waialae Country Club Honolulu, HI
COO and General Manager Southern Hills Country Club Tulsa, OK
General Manager The Country Club of Virginia Richmond, VA
COO and General Manager Polo Club of Boca Raton Boca Raton, FL
Innovation is a key component of leadership. These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together. The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.
Find out more. Call us at 800-553-2438. Or just ask them!
FOOD AND BEVERAGE MANAGEMENT SYSTEM
PROCUREMENT • INVENTORY • CULINARY CONTROL
http://www.foodtrak.com
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
Where Goes the Future? What does the future hold for the private club industry? That’s a question open to debate, research and discussion among associations affiliated with private clubs, and a topic of great interest for club boards of directors and general managers.
The challenges of clubs today are well documented… an aging Baby Boomer population and a changing more diverse population, including more single women households, and of course a rising Millennial population, less corporate support for memberships, and finally…increasing competition for private clubs. As the governance model slowly evolves, each club must find ways and means drive membership goals, develop amenities that attract members all while keeping a lid on a club’s finances. What does this mean for the associations so intimately involved in the private club industry? It’s a question BoardRoom posed, in our cover story this issue, to each association president. All four of the association presidents: Robert C. James CCM, CCE, CHE, President, Club Managers Association of America; Bill H. Maynard, CGCS, President, GCSAA; Paul Levy, President, PGA and Gordon Welch, President, APCD offer their insights and opinions of where the industry is today and what they feel the future holds. Not surprisingly, they identify many of the same challenges…membership growth and retention, the need for collaborative governance between boards and club managers, the handling of information, cost and the time it takes to play a round of golf, environmental issues and water costs, and confronting the challenges of the Millennial generation, to name a few. Our cover story gives a view of the industry from the point of view of four associations, who come to the table from very different perspectives. Yes, there are similarities, but also significant difference, as we might expect. ■ ■ ■
In our January/February issue, Gregg Patterson, the now retired, former general manager of the Beach Club of Santa Monica hit on a topic near and dear to many general managers’ hearts… “Married to Clubdom.” Patterson also illuminated on the topic at the CMAA conference in Orlando, and certainly hit the mark for many people working in private clubs. Oftimes, it seems a person is married to their club rather than a spouse. 4
BOARDROOM | March/April 2017
Well, it’s time for another opinion, and it comes from Gregg’s wife, Elaine Patterson, who has worked at two careers for more than 35 years…one as a human resource manager and the other as a club manager’s spouse. Often, we hear descriptions of general managers and their work as ‘unique.’ Well, as Elaine points out, there are some distinctive factors about the profession of private club manager, but “many things are not unique.” Fact is, Elaine as a human resources and organizational development leader, brings a depth and breadth to this topic that offers insight and suggestions for many people working in the private club industry. No question, people struggle with these challenges, but as Elain’s espouses: “Let’s acknowledge the elephant in the room.” In typical Patterson way, Elaine tackles the issue head on with opinions general managers and their spouses can value. ■ ■ ■
Also in this issue, Don Williams, a long-time personality in the private club industry, is recognized with BoardRoom’s Lifetime Achievement award and acknowledged in a heartfelt story written by another industry icon, Eldon Miller, Editor-at-Large for the Private Club Advisor. It’s an honor Don accepts humbly as he explains in a note to BoardRoom’s publisher, John Fornaro. “Thank you so much for the Boardroom’s Lifetime Achievement Award. On the one hand, I cannot think of a more humbling award and reward for a life of service to an industry I have loved being a part of for over 40 years. On the other hand, an award such is this is only for old people...people with worn out moccasins from the long road traveled…and then I looked down and saw blistered feet and shredded moccasins…and realized I might be one of those old people. “All that said, your award to me for my service to the club industry is a very proud and humbling experience.” You’re welcome, Don! ■ ■ ■
And finally, our features on BoardRoom’s top presidents for 2016 continue. Included are: Linda Adamany, Kensington Country Club, Naples, FL; Kathleen Boyce, Wellesley Country Club, Wellesley Hills, MA; Ken Donovan, Fiddler’s Elbow Country Club, Bedminster, NJ, and John Fanburg, Mountain Ridge Country Club, West Caldwell, NJ.
Publisher/CEO
Co-Founder/CEO
John G. Fornaro
John G. Fornaro
Editor/Co-Publisher
President
Dave White
Keith Jarrett
Assoc. Editor/VP Creative/Co-Publisher
Chief Analyst
Heather Arias de Cordoba
APCD Executive Director Bill Thomas
Frank Gore
Chief Information Officer Jeff Briggs
Editorial & Marketing Director Dee Kaplan
Executive Director Bill Thomas
Account Manager
Contact Information
Dina Alleluia-Carr
Contact Information
www.DistinguishedClubs.com (949) 376-8889
www.BoardRoomMagazine.com www.apcd.com (949) 376-8889 or (949) 365-6966
Subscriptions and Website Heather Arias de Cordoba www.BoardRoomMagazine.com (949) 365-6966
Featured Columnists Richard Kopplin Rick Coyne Rick Ladendorf John G. Fornaro Bonnie J. Knutson Nancy M. Levenburg
Melissa Low Dave White Elaine Patterson Whitney Reid Pennell
Contributing Writers Heather Arias de Cordoba Chris Boettcher Lisa Carroll Ronald F. Cichy Addison Craig Michael Crandal Rob DeMore Dave Doherty Dave Downing Todd Dufek Steve Graves Rob Harris
Larry Hirsh Robin Michael Eldon Miller Peter J. Nanula Macdonald Niven Michael Phelps Ted Robinson Lenard Rubin Robert A. Sereci Rosie Slocum Mitchell L. Stump Michelle Tanzer Bruce R. Williams
Endorsements, Strategic Partners and Allied Associations
BoardRoom magazine is published by APCD Inc. 1100 S. Coast Hwy. #309 Laguna Beach, California 92691 The BoardRoom magazine (USPS 022516, ISSN 15537684) is a bi-monthly trade publication. Issue 269 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.
INTERIOR DESIGN | ARCHITECTURAL COLLABORATION | TURNKEY FURNISHINGS ACQUISITION AND INSTALLATION | COMPREHENSIVE CONSTRUCTION DOCUMENTS
301.570.0098 | ltyler@ltcsi.com | Brookeville, MD
CO N T E N T S | M A RC H /A P R I L 201 7
PUBLISHER’S PERSPECTIVE | 10
PLIGHTS AND INSIGHTS | 12
CASE STUDY | 14
WHAT ARE THE TRENDS FOR PRIVATE CLUB MEMBERSHIPS?
WHEN ONE DOOR CLOSES…
THE ART OF SIGNIFICANCE
NANCY M. LEVENBURG
RICK COYNE
JOHN G. FORNARO
When a family is considering a membership it’s often the female member who drives the money decision making, and who has developed an awareness of a private club. There’s often a developing interest and perhaps a trial to see if it works for the family, and based on what they see, the potential member will decide to join.
Recently, I watched an early morning program on the Golf Channel. The host of the show was interviewing a guest who advocated that the future of golf resides in young families. No surprise. But what I found intriguing was that the guest was promoting private clubs opening their doors to the public, in short, anything and everything the private club offers to its members.
This is an industry steeped in tradition and values, often rendering change difficult. GAs industry evidence mounts about new best practices and the results they create, change slowly weaves its way into even the most difficult of environments. Unfortunately, for some, change may come too late. The fundamental question is this: how can you detect the changes that are coming?
EXECUTIVE COMMITTEE | 16
BOARDROOM BASICS & BEYOND | 18
MEMBERSHIP MUSINGS | 34
SIX KEYS TO RENOVATION RE-OPENING SUCCESS
THE FIVE BEST PRACTICES FOR MODEL CLUB GOVERNANCE
YOUR CLUB’S MARKETING’S FOUR ACES
WHITNEY REID PENNE L L
R I C H A R D KO P P L I N
I was scratching my head…a club I was working with recently was changing the point of sale systems. The leaders in charge of this transition was retrofitting the new system so it worked like the old system. Why? Because it was all they knew. They had not seen another way.
In recent years while visiting over 200 clubs all over the world, we’ve seen some governance/management trends emerging in what we describe as the “model clubs.” Here are some of the best practices forming the foundation for the success of these clubs.
I learned marketing at my dad’s knee. Even though he only had an eighth-grade education, he instinctively knew that the most important real estate in marketing is the six inches between the consumer’s ears. He would often tell me that marketing has nothing to do with our store itself, but had everything to do with how people think about our store.
WELLNESS COMMITTEE | 38
LEGISL ATIVE COMMITTEE | 54
TRIBAL MAGIC | 86
FARM-TO-TABLE PROGRAMS OFFER APPEALING PROGRAMS
LEGISLATIVE AND REGULATORY UPDATE
AN OPEN LETTER TO CLUB MANAGERS
BY RICK L ADENDORF
BY MELISSA LOW
There’s been a significant increase in health and wellness interest at private club, and more specifically, the move toward farm-to-table food solutions. Outside the gates, there are fresh format restaurants trying to lure inclub members, and many clubs are fighting back with their own solutions that are relevant to their members and families.
It’s a new session of Congress and a new Presidential administration. What does that mean for the major issues affecting the club industry? Here’s a brief update.
I’ve had two careers for more than 35 years: one as a human resources manager and one as the spouse of a club manager. I’ve been advising leaders at all levels in my business, serving as a sounding board for my husband Gregg, and observing club managers all over the world. This is another one of those moments when I ask forgiveness rather than permission. I’m writing because I care and hope you will keep that in mind.
BONNIE J. KNUTSON
BY EL AINE PATTERSON
DEPARTMENTS
COV E R STO R Y. . . . . . . . . . . . . . . 20
LIFETIME ACHIEVEMENT. . . . . . . . 26
Private Club Industry and Affiliated Associations Where are we now? What does the future hold? Who Benefits?
Don Williams Recognized with BoardRoom’s Lifetime Achievement Award By Eldon Miller
By Dave White
DISTINGUISHED CLUBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
It’s Summit Time Again!
SECTIONS
By Heather Arias de Cordoba
ON THE FRONTLINES. . . . . . . . . . . . . 44
The Expansive Representation of One
BOARDROOM AWARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
By Macdonald Niven
2016 BoardRoom magazine Excellence in Achievement Awards
ON THE FRONTLINES. . . . . . . . . . . . . . 52
Perils of Membership Categories - Part I By Robert A. Sereci
COMMITTEES
PGA. . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
FINANCE COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
EXECUTIVE COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . 64
By Peter J. Nanula
By Ronald F. Cichy
John Easterbrook Jr. Named PGA’s Chief Membership Officer
APCD. . . . . . . . . . . . . . . . . . . . . . . . . . . 56
BoardRoom magazine Recognizes the Private Club Presidents of the Year DISTINGUISHED IDEAS. . . . . . . . . . . . 62
Diablo Country Club Finds Long-Term Solution To Water Problem By Heather Arias de Cordoba
The Dangerous Illusion of Real Estate Value - Part II
What does REAL Leadership mean to YOU?
FINANCE COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
LEGAL COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
By Mitchell L. Stump
By Michelle Tanzer
More Best Practices For Private Clubs
MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . 48
Engaging the New Millennial Legacy By Steve Graves
Spa and Fitness Waivers
HOUSE COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Questions Clubs Should Consider About Its Locker Rooms - Part I By Todd Dufek
MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . 49 DISTINGUISHED IDEAS. . . . . . . . . . . . 63
Here’s the Best Member Referral Program
By Heather Arias de Cordoba
MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . 50
INNOVATIVE IDEAS. . . . . . . . . . . . . . . 70
By Ted Robinson & Robin Michael
Wyndemere Country Club Bring Wellness To Staff Members
By Michael Phelps
EXECUTIVE COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . 72
The Member-Owned Club By Rob DeMore
Create the Profile of Your Most Likely Prospects!
GREEN COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . 51
By Larry Hirsh
By Rosie Slocum
GREEN COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . 55
By Bruce R. Williams
By Addison Craig
GREEN COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
INSIGHTS. . . . . . . . . . . . . . . . . . . . . . . 84
HOUSE COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
By Dave Doherty
By Michael Crandal, CNG
By Lisa Carroll & Chef Lenard Rubin
GREEN COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
CLUB SERVICE. . . . . . . . . . . . . . . . . . . . 92
LEGAL COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
By Dave Downing
By Chris Boettcher
By Rob Harris
Bethesda Country Club’s JumpStart Program Focuses on Employees
By Heather Arias de Cordoba
Get Your Head Out of the Clouds!
INNOVATIVE IDEAS. . . . . . . . . . . . . . . 71
Cosmos Club Wins with a Unique Outdoor Dining Venue
By Heather Arias de Cordoba
A Private Club’s Return on Investment
Boring Reading 101 You Better Read!
Tips to Win Over Millennials
Set Your New (or Current) Chef Up for Success
Trump National to Return Former Members’ Deposits
Rejecting High School Golfers Illustrates a Disturbing Trend
Minimum Wage and Its Effect on Golf
The Birth and Aging of a Golf Green
Why Does a Club Need a Master Plan?
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
What Are the Trends for Private Club Memberships? What Should Clubs Be Offering?
What’s the right mix for memberships in a private club? And what kind of memberships should private clubs be offering today?
Are they different from five, 10, 20 years ago? And if so, why? Fact is, what’s being offered at private clubs today varies. Is there a one-fits all membership, or is there free rein, everything goes attitude. “In the original days of the private club industry, clubs essentially, had one class of membership….’you’re either a member or you are not,’” explained Steve Graves, president of Creative Golf Marketing, a company specializing in membership development strategies. “Private clubs had one membership where everyone paid the same joining fee, the same monthly dues and enjoyed the same privileges of membership. Those days are over and the private club industry now offers many types of membership with different joining fees, different monthly dues and different usage privileges. “However, there’s a great deal of confusion about the ‘fundamental offerings’ that each club should consider as its ‘basic offerings.’ “The trend … clubs are attempting to offer too many memberships. There is the attempt to meet the needs of each current member or prospective member for fear of losing their dues income. Clubs are throwing a lot of spaghetti against the wall hoping a few strands stick without a true understanding of the unintended consequences of their decisions,” Graves opined. “There are myriad options and offerings ranging from one category to the Heinz 57 variety,” injected Rick Coyne, managing partner of Club Mark Partners, an industry consulting form. “Historically, the decision on categories was at least in part, predicated upon urgency to gain new members. Desperation generally bred accommodation. More stoic and traditional clubs stayed with the basics, some even opting for only one category, full. “If there’s a trend, it’s toward designing a better junior and/or intermediate membership,” Coyne suggested. “In nearly every locality, peak earnings don’t occur until the 55-year-old age range, then diminish after retirement. With that fact as the backdrop, accommodating the younger members as they ‘grow into membership’ would seem both logical and savvy. 10
BOARDROOM | March/April 2017
“Many clubs still cling to the ‘age of majority’ at 35. Most markets would suggest that this should be gradually shifted higher. In second home communities, many clubs offer the opportunity at lower dues to age 55. Obviously, an understanding the specific demographic of the club is crucial to done,” Coyne added. “Categories, like anything else related to marketing, must be based upon good demographic analytics. Too many membership categories can be confusing and unnecessary. “Keeping the offering in concert with your market is the best practice. Categories that allow younger families to ‘ease’ into membership make sense. Earnings rarely peak until the 55-65 age range. Finding the right tier stepped approach to junior or intermediate members can be a windfall. “Specifically driving categories to market can and should drive additional memberships. Using the junior category in an east coast market, the club attracted over 200 new younger families in a relatively short period. Do the homework, but know what your market needs before stepping off the cliff,” Coyne advised. “Clubs cannot survive by serving only one membership type or demographic. However, clubs typically serve the age demographic that serves on the board more than any other group,” exclaimed Whitney Reid Pennell, president of RCS Hospitality Group, “and committees are often populated with members who have the ‘this is how we’ve always done it’ mentality, making it difficult to engage all demographic groups.” Pennell added that because of varying lifestyles, different groups of people use their club at different times. “For example, a retired member may golf every weekday, but stay away on weekends whereas a working member may golf nine holes in the afternoon and with their family on Sundays.” She suggests most clubs are staying with the “full golf or social membership, but I’ve seen clubs look at sports social, dining social, Twilight golf, out-of-state, junior or executive and extended family memberships. “Clubs are offering more and more different types of memberships trying to attract modern members. While I understand the idea, sometimes too many choices are overwhelming for a member resulting in a lot of ‘policing of policies’ for so many different memberships with varying privileges. Also, if you study the Millennials, they are more SEE PUBLISHER’S PERSPECTIVE | 89
NANCY M. LEVENBURG
PLIGHTS AND INSIGHTS
Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the President of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact Nancy at: levenbun@gvsu.edu or (616) 331-7475.
When One Door Closes… Recently, I watched an early morning program on the Golf Channel. Perhaps it was “Morning Drive…” I can’t quite recall.
The host of the show was interviewing a guest who advocated that the future of golf resides in young families… and attracting younger children to play golf. No surprise. But what I found intriguing was that the guest was promoting private clubs opening their doors to the public – through “open to the public” golf camps, lessons and programs – in short, anything and everything the private club offers to its members. Aside from upscale, high-end private clubs, which will likely prosper regardless of the economy, changes in demographics and psychographics, and so on, lower-end and mid-market clubs have struggled in recent years. That’s no surprise, either. While many private club boards believe that family-focused clubs will be the ones to prosper in the future, is welcoming in the public the right way to go? LUNCH WITH A FRIEND
Interestingly, the day before, a friend treated me to a birthday lunch at her private club. Well, that is, her club used to be private. And while the golf course at the club is still private, it now has an open-to-the-public dining room. So, it
has been unable to seat us a couple of times when the dining room was filled with… guess who? Non-members.” “So, where do you go for date night now?” I asked. “Sometimes we go to another private club where we have reciprocal privileges… and their dining room isn’t open to the public. And sometimes we go to one of the better restaurants in the community.” “What about your dining minimum?” I asked. “It’s no problem for us meeting our minimum,” she responded. “Bill usually covers that in a couple of months just by taking his clients out for lunch and getting together with the guys for a beer after golf. But we’re now starting to think about joining somewhere else.” THE TRADE-OFF
All kinds of organizations frequently resort to desperate measures when sales are down and coffers are cashstarved. Retailers slash prices to move merchandise off the racks and out of the store, and manufacturers are reluctant to turn down orders that generate cash – even if they are accompanied by a lower profit margin. And private golf and country clubs turn their eyes to the non-member public, hoping to increase sales and revenues by presenting their offerings to new markets and new (potential) members. When one door closes, a window opens… or does it?
There is also a “cost” in recruiting the public. National surveys show that club dining operations are the most popular member amenity offered by clubs. A primary reason for this, as my friend suggested, is the fact that a private club is, after all, a private club. appears they’re trying to attract the public through its gastronomic offerings with trendy menu items like everything from Burrata to Coconut Shrimp to Duck Confit tacos. I asked her how things were going at her club. “Well,” she said, “I don’t mean to sound snobby, but I really don’t like sitting with a bunch of strangers. I mean, it used to be that when Bill (husband) and I went to the club, we knew everyone in the dining room. “Bill and I have always had a ‘date night’ one night a week when we get dressed up and go out for dinner. But it isn’t fun anymore getting dressed up and going out to the club for dinner when you don’t know anyone in the dining room, and they’re all wearing jeans! But worse yet, our own club 12
BOARDROOM | March/April 2017
As my friend seemed to indicate, there is also a “cost” in recruiting the public. National surveys show that club dining operations are the most popular member amenity offered by clubs. A primary reason for this, as my friend suggested, is the fact that a private club is, after all, a private club. It’s not a restaurant that is open to the public. And this exclusivity is one of the primary reasons why members join a private club in the first place. So, as the club relaxes its dress code standards and reaches out to the public to recruit new members, will the additional revenues generated from families who are attracted by “Kids Eat Free” promotions compensate for the defection of fullfare dining members? It’s an interesting question. BR
RICK COYNE Rick Coyne is managing partner, Club Mark Partners, LLC. He can be reached at (760) 610-5230 or via email: rcoyne@clubmark.com
CASE STUDY
The Art of Significance After 46 years of research and engagement with private clubs, it’s always gratifying and enjoyable to witness clubs gravitating toward change and greater significance to their members and community.
As we all know, this is an industry steeped in tradition and values, often rendering change difficult. Gradually however, as industry evidence mounts about new best practices and the results they create, change slowly weaves its way into even the most difficult of environments. Unfortunately, for some, change may come too late. The fundamental question is this: how can you detect the changes that are coming? In his best-selling book, How the Mighty Fall, Jim Collins talks about detecting and reversing decline. Here’s an excerpt: “Decline can be avoided. Decline can be detected. Decline can be reversed. Amidst the desolate landscape of fallen great companies, Jim Collins began to wonder: How do the mighty fall? Can decline be detected early and avoided? How far can a company fall before the path toward doom becomes inevitable and unshakable? How can companies reverse course?” Over the years, in white papers and articles there has been considerable evidence of the changes affecting private clubs. Aging population signaled a need to attract younger members, younger members required different programming for family and Mom. Lack of leisure time diminished a member’s ability to use the club as frequently, which required creative programming to engage and preserve value. Generational change and their differing wants and needs have been front page news for years. These are the new realities that must be addressed by every private club. Part of the problem is in ensuring a club-wide shared vision of these realities and coping strategies that can better place your club into the path of the market it serves, both member and potential member community. Many clubs have adopted the process of annual board retreats facilitated by industry experts to discuss market realities, club specific membership analytics, best practices in capital spending and best practices in event planning, hopefully resulting in a strategic plan that encourages consistency in governance and direction. Market realities and
site specific analytics are crucial to have a practical and objective understanding of potential remedies. In another excerpt from How the Mighty Fall, it says, “Companies, clubs and communities fail when they cease to remain relevant to an ever-changing consumer need….” In other words, when they lose sight of what they offer versus what the market says it wants! To understand the reality of market needs, a survey or information gathering must be part of the membership analytic process, segregating responses by age, gender, family make-up and distance of residence from the club. Survey new members to determine what was important to them in making the joining decision. Ascertain the demographic of members joining over the past five years. What has been important to them in making the joining decision. Remember that significance means different things to different people based on: • Age (generational) • Family make-up • Gender Remember also that the club’s brand extends to two communities, your existing members and the next generation of members that is likely shopping based on what they hear about your club, what you provide for their specific needs, and the value you can provide. Everything that a club does internally becomes your brand based upon perception. Creating brand significance requires a shared vision and departmental engagement in facilitating events and programs appealing to your targeted audience. It also requires looking forward more than looking back. We will not change any of the external factors effecting the private club industry. We can however, accept reality, determine the needs of our existing members to keep them longer and to understand and respond to the needs of the next generation of member so that growth is predicated on the relevance and significance. Change is a difficult process. As Henry Cloud was quoted, “We change our behavior when the pain of staying the same becomes greater than the pain of changing.” Embrace change, stop asking what the neighboring club is doing and find new markets and opportunities, do the membership analytics to understand your market and position your club in its path. SEE CASE STUDY | 31
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BOARDROOM | March/April 2017
WHITNEY REID PENNELL
EXECUTIVE COMMITTEE
Whitney Reid Pennell, president of RCS Hospitality Group (RCS) is a celebrated management consultant, educator, and speaker. RCS specializes in strategic planning, operations consulting, food and beverage management, and training programs with a keen focus on renovations and reopening. For more information, call (623) 322-0773 or visit www.consultingRCS.com.
Six Keys to Renovation Re-Opening Success I was scratching my head…a club I was working with recently was changing the point of sale systems. The leaders in charge of this transition was retrofitting the new system so it worked like the old system.
The old system forced the club to use duplicate screens for all food and beverage areas, resulting in inaccuracies and frustration. Even though the new system did not need to duplicate screens, the leadership’s set-up directive was perpetuating the inefficiency. Why? Because it was all they knew. They had not seen another way. It’s hard for us to imagine or even deliver what we have not yet seen or experienced. That’s exactly what can make navigating the renovations process so tricky.
welcome in their soccer gear or for a family celebration. TVs will be tuned to sporting events or news with the volume turned down. Upbeat music will be played in accordance with club standards. Children will have fun areas to enjoy within the room while their parents dine, if desired. Daily, complimentary coffee will be available and a lunchtime salad bar set up for speed of service. This clearly defined vision helps to imagine the expected dress code, uniform standard, and service level, which will in turn guide hiring and training procedures and dictate budget items. 2. Determine your critical service standards. What should every employee be able to do before a member interaction? For example, “Every member will be greeted
Some managers curse renovations for this reason. Others thrive. Regardless of the manager’s mentality, they are often expected to magically find more time to balance the current and future operations, and fully communicate with members about the renovation, all while also ‘raising the bar’ of service. It’s no secret that member expectations for a club after a renovation are astronomical. But how can the current management team deliver a higher service level if they have never done it, or worse, if they don’t have the time? How can management prepare for a new service level if they are also managing the existing operations? Managing a renovation is a full time job. Preparing your club’s operations through a renovation is also a full time job. Some managers curse renovations for this reason. Others thrive. Regardless of the manager’s mentality, they are often expected to magically find more time to balance the current and future operations, and fully communicate with members about the renovation, all while also ‘raising the bar’ of service. To help, here are six tips on how to prepare your club to open after a renovation: 1. Define your operations. Spend time pondering each space of the club and answering some key questions. What is the vision for the space? How will it be used? How will it look? When will it be open? What are the staffing expectations? For example: a casual dining space where families are welcome for breakfast, lunch, and dinner. They will feel 16
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within 30 seconds using eye contact, a member’s name, and a smile.” If knowing the member’s name is a critical standard, the training plan must include defined methods of ensuring this can happen consistently. 3. Set up a training plan with new training materials to deliver these critical service standards. Think blended and interactive learning! 4. Revisit your orientation program to include details about the facility renovations and ensure relevance for today’s multigenerational workforce. 5. Identify frequently asked questions that members may pose about the updates and provide a ‘script’ for the staff so they are familiar with your preferred responses. 6. Create opportunities for the current staff and new hires to come together and ‘gel.’ A new service culture requires a committed and dynamic leadership who are competent and comfortable managing performance. Without constant reinforcement of new standards the “old regime” may slip into old habits with new hires following suit. Engaged management and daily coaching will hold your service culture to the higher standard you seek. BR
RICHARD KOPPLIN
BOARDROOM BASICS AND BEYOND
Dick Kopplin is a partner in Kopplin Kuebler & Wallace, an executive recruiting firm providing services to the private club industry. The company has offices in Scottsdale, Arizona and Jupiter, Florida. He can be contacted at (480) 443-9102 or via email: Dick@kkandw.com
The Five Best Practices for Model Club Governance In recent years while visiting over 200 clubs all over the world, we’ve seen some governance/management trends emerging in what we describe as the “model clubs.”
Here are some of the best practices forming the foundation for the success of these clubs. 1) The nomination process puts forward the exact number of candidates for the corresponding number of open board seats. The days of the “popularity contests” are rapidly ending and model clubs understand the importance of “recruiting” the talent they need to provide counsel and advice to their general manager/chief executive. 2) Club committees are being chaired by the department managers and not a board member. While a board member serves on the committee, the responsibility of preparing the agenda, conducting the committee meeting and writing the minutes of the meeting are all done by the department manager.
cisions based on anecdotal evidence, or reacting to the last comment of an angry member are ending. The Club Managers Association of America is now focused on providing a resource of data driven information on a variety of topics that’s available to all CMAA members and their clubs. 4) The development of the chief executive concept. As more club general managers obtain their CE certification, club boards are recognizing a concept that has been the standard in successful business models in every industry. This model of governance/leadership engages a capable general manager/chief executive to lead their club in every arena. The key to the success of this model is an engaged executive who has gained the trust and respect of their board and provides them ongoing leadership and education regarding best club practices. 5) The emergence of the education partnership of the general manager/CE with the board of directors. It is now
The development of the chief executive concept. As more club general managers obtain their CE certification, club boards are recognizing a concept that has been the standard in successful business models in every industry. This model of governance/leadership engages a capable general manager/chief executive to lead their club in every arena. The key to the success of this model is an engaged executive who has gained the trust and respect of their board and provides them ongoing leadership and education regarding best club practices. Since each department manager is closest to the issues in their respective departments it’s logical for them to present the issues to the liaison board member for inclusion on the agenda. Why would anyone think that a volunteer board member would have the expertise regarding food and beverage, golf course agronomy, golf event programing, racket sports, or fitness and pool issues? These are the areas that the respective department managers engage in every day, and it’s the focus of their expertise. 3) The focus on data driven decision making is becoming more evident. Thankfully, the days of the board making de18
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common for board presidents and board members to attend either the CMAA pre-conference workshop on executive leadership and/or the Governance/Leadership Summits being presented around the country. This type of cooperative education will continue to provide private clubs with the kind of strategic thinking necessary to meet current and future member needs. These five governance/management practices are clearly evident in the “model clubs” visit and will continue to be the hallmark of successful clubs in the future. BR
The Private Club Industry and Affiliated Associations WHERE ARE WE NOW? WHAT DOES THE FUTURE HOLD? WHO BENEFITS? By Dave White, editor The private club industry, for better or worse, is in a world of change. And how the industry and associations who play a major role in the life of private clubs deal with evolutionary change will have a significant impact on the future of the industry.
The challenges for private clubs are many: Baby Boomers, often viewed as the saviours of the industry, are aging. Families are changing and today there are likely more single women households than ever before, a point raised by Nancy Levenburg in a recent BoardRoom article (Marketing to Singles: The Numbers Are Large and Growing, BoardRoom January, February 2017). Millennials are another large segment…now about 75.4 million, exceeding both the Baby Boomer generation (aged 51-69) and Generation X-ers (aged 35-50). “Between 1999 and 2014, the number of single-person households increased to about 34.2 million from 26.6 million, an average annual rise of 1.7 percent. That’s a higher growth rate than the growth in total households (which means that the percentage of single-person households among all households has risen),” said Levenburg, a member of Spring Lake Country Club in Spring Lake, Michigan. “And, interestingly, the highest growth segment among single-person households is in the above-55 years age group, which (coincidentally!) is exactly the same mean age group as most country club’s members… a prime market!” So, for a look at where we are now, and the future, BoardRoom posed several questions to the presidents of associations – CMAA, GCSAA, PGA and APCD – affiliated with the private club industry, and asked for their thoughts and opinions. ROBERT C. JAMES CCM, CCE, CHE, PRESIDENT CLUB MANAGERS ASSOCIATION OF AMERICA
Bob James is the executive director of the Westchester Country Club, a private membership club with 1,400 families in Harrison, New York. Bob has over 40 years of experience in the club industry, including 25 at Westchester Country Club. He obtained his Bachelor’s degree from the school of hotel administration at Cornell university and MBA from Pace University. 20
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He is a certified club manager, certified club executive and certified hospitality educator. This year he celebrates his 31st year as an adjunct professor, teaching the course on private club management at his alma mater, Cornell. 1) What are your goals with the association to help the private club industry? The Club Managers Association of America recently completed a new strategic plan, a collaborative effort by our chapter leaders, national board and staff, all led by our CEO, Jeff Morgan. This plan provides us a roadmap for the future. As you might expect, we have many goals, not the least of which are, grow our membership, develop a robust research and club resource center, further enhance our very successful Business Management Institutes (the core of our lifetime development program) and promote advocacy for our clubs in the political areas as well as effective club governance within our club board rooms. Personally, I strongly endorse these programs and have a special interest in advocacy. The public and our political leaders need to be aware of the many contributions that our clubs make to our employees and member’s lives, the jobs, charitable contributions, and trickle down economic value to our communities, and preservation of open space and wild life habitat. Our story needs to be heard on Capitol Hill and the State House steps. CMAA recently initiated regional Governance/Leadership Summits for general managers and board officers to promote good club governance and clarify the rules and responsibilities of each. The future success of our clubs is dependent upon effective club governance. 2) Education for your association members is a major objective of associations affiliated with the private club industry. Knowing at the end of the day the private club members are paying for your members’ association dues and continuing education, how does the club member personally benefit from that? The CMAA’s mission statement is, “to advance the profession of Club Management by fulfilling the educational and related needs of its members.”
Robert C. James CCM, CCE, CHE, President,CMAA Bill H. Maynard, CGCS, President, GCSAA Paul Levy, President, PGA
I believe that it is commonly understood that development of our association managers directly impacts the quality work that we do for our members. Our six Business Management Institutes are campus-based at the leading hospitality schools in the country. They serve as the core of our certification and overall educational offerings, providing the highest quality, private club industry specific education available. While not a degree program, the education that is provided is college level at a small fraction of the cost of a college degree. Through our affiliate, The Club Foundation, grants are provided to familiarize and educate professors who teach up and coming club management students at many of the more than 46 colleges that offer club management courses. These are only two examples of a lifetime of education and career development that CMAA provides to its membership. The knowledge and skills directly relate to the level and quality of services our managers bring back to their members. 3) How does the club benefit? Our CMAA educational curriculum covers more than 10 core competencies of which approximately half are service and member oriented and the other half to protect and preserve the club itself. The latter covers such subjects as risk management, membership marketing, legal and legislative, facilities management and others. At a higher level, our programs cover asset management such as finance, physical plant and human resource management. At the most advanced levels, strategic issues are explored, such as mission and vision, the club culture and club governance. To further benefit clubs, CMAA recently reorganized its Club Resource Center, which provides research and club analytics, in addition to extensive online training for all levels of club employees. I believe that clubs are only as strong and successful as their management and management will only progress at successful clubs. 4) What do you see as the major issues clubs will be facing over the next few years. How can your association help? Now that we appear to be finally emerging from the long and destabilizing recession, I believe that most significant challenge and opportunity for our industry is the new Millennial demographic bubble in our society. CMAA recently engaged, noted expert and speaker on Millennials, Jason Dorsey and his Center for Generational Kinetics to survey and develop a white paper report on the challenges and opportunities of the Millennial generation. We were pleased to learn that as potential members, they value the culture and services that clubs have to offer. They will provide challenges to the status quo for any club that has not already started to embrace change. From an employee perspective, they are energized and passionate about their work but they expect more autonomy, meaningful recognition and flexibility in their work/life. I believe that CMAA can continue to aid clubs in effectively optimizing the membership and employment opportunities this new generation brings to our table.
Bill also serves as chairman of the board of trustees for The Environmental Institute for Golf (the philanthropic organization of the GCSAA). Maynard was first elected as a director to the GCSAA board at the 2010 annual meeting in San Diego. Maynard is the director of golf course maintenance operations at The Country Club of St. Albans (Mo.). He has served as a board member for both the Carolinas and Heart of America chapters, including service as president for the Heart of America GCSA. He has served on a GCSAA national committee every ➤
Gordon Welch, President, APCD
BILL H. MAYNARD, CGCS, PRESIDENT GCSAA
year since 1999. He is also a member of the Kansas Turfgrass Association. A 30-year GCSAA member, Maynard first achieved certification in 1998. A native of Nashville Tenn., Maynard earned a B.A. in psychology from the University of Tennessee in 1986. 1) What are your goals with the association to help the private club industry? GCSAA has been around for more than 90 years, but the foundation of why the association was founded remains unchanged — GCSAA exists to share education among its members and promote the profession and its significant role in the game. I want to continue to build the network that brings all associations in the golf industry together to meet challenges and create a framework for understanding. We are actively engaged in pursuing our core priorities, which include best management practices, advocacy and environmental stewardship. Advancing those fundamental programs and achieving success in them means wins for not only golf course superintendents, but also the golf facilities that they manage. When superintendents win, so too does the private club industry and the members of those clubs. 2) Education for your association members is a major objective of associations affiliated with the private club industry. Knowing at the end of the day the private club members are paying for your members’ association dues and continuing education, how does the club member personally benefit from that? Club members see the benefits of educating superintendents every time they step foot on the golf course. Superintendents are maintaining ever-improving conditions on golf courses all over the country, all while using less water, less inputs and less energy — and, by natural extension, less of a club’s financial resources — while doing so. GCSAA’s recent series of Golf Course Environmental Profile studies quantifies those achievements, and that is information we’re dedicated to sharing with all golfers so that they understand exactly how continuing education and professional turf management can benefit any golf facility. 3) How does the club benefit? The golf course is the largest asset of any golf facility, and studies have continually and overwhelmingly identified the conditioning of the golf course as the No. 1 driver of satisfaction among golfers and club members. A club managed by a professional, educated and involved superintendent is one that is consistently exceeding member’s expectations and one that is doing so in both a financially and environmentally sustainable way. 4) What do you see as the major issues clubs will be facing over the next few years. How can your association help? 22
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Cost and the time it takes to play are major challenges for our game, just as they have been for many decades. Superintendents can play a key role in managing both of those challenges. For example, superintendents are controlling water costs by using recycled and reclaimed water sources. They are controlling maintenance costs by reducing the number of acres dedicated to full maintenance, often returning some of that acreage to native areas conducive to wildlife habitats and buffer zones for erosion control. Pace of play is something superintendents also keep a watchful eye on. They can keep rough at a manageable height during high traffic times of the year and keep hole locations in accessible places on the greens. Additional comments: If I offer a helpful tip to all golfers and club members, at the top of my list would be the simplest — please fix your ball marks, replace your divots, rake the bunkers and tread lightly on the greens so as not to damage the turf. It doesn’t take much time or effort as a golfer to pay attention to these things, and doing so ultimately saves your superintendent and their crew time and money. Every little bit helps. Together, this is “our” game, so we all need to do our part. PAUL LEVY, PRESIDENT PGA
Paul K. Levy is president of club operations and development for Sunrise Company and also is the CEO and general manager at Toscana Country Club in Indian Wells, California. Before his election as PGA President in November 2016, Levy served as PGA Vice President and PGA Secretary. Levy earned PGA membership in 1986, and has served in a leadership capacity at both the section and national levels since 1992. A member of the Southern California PGA Section, Levy brings a deep commitment to enhancing the skills and employment opportunities of PGA Professionals to his role as PGA President. 1) What are your goals with the association to help the private club industry? To show the value of hiring PGA Professionals and showing their ability to grow the game by attracting new members, helping to sell memberships and retain current members. Teaching the game is critical at a private club for member retention and growth, increased member utilization and the PGA Professional’s ability to be an aspirational personality and figure for junior golfers and new golfers. By doing so, they improve the business of the club, therefore keeping dues lower. 2) Education for your association members is a major objective of associations affiliated with the pri➤
“During our meeting you politely, but directly, pointed out that my plan for the future management of my club was not consistent with best practices in the country club community. You provided me reasons, data and a revised plan. I ended the meeting by asking if you would perform the search that I initially thought best and your response was ‘no’ you would not take on a search that you did not feel you could successfully accomplish. I left the meeting believing your firm was committed to providing its clients with great work and superior results. My belief has been confirmed by your entire process, your personal guidance and our result.”
Keith H. Berk, President Northmoor Country Club, Highland Park, IL
DICK KOPPLIN
KURT KUEBLER
TOM WALLACE
LISA CARROLL
JACK SULLIVAN
ARMEN SUNY
SPECIALIZING IN GM/COO, DIRECTOR OF GOLF, GOLF COURSE SUPERINTENDENT, EXECUTIVE CHEF, COMMUNITY ASSOCIATION MANAGER , ASSISTANT GENERAL MANAGER , AND CLUBHOUSE MANAGER SEARCHES , AS WELL AS STRATEGIC PLANNING AND CONSULTING SERVICES FOR PRIVATE , RESORT AND DEVELOPER - OWNED PROPERTIES .
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CLEVELAND
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JUPITER
EXECUTIVE SEARCH FIRM OF THE YEAR 10TH YEAR IN A ROW
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vate club industry. Knowing at the end of the day the private club members are paying for your members’ association dues and continuing education, how does the club member personally benefit from that? They benefit by having a better overall experience and using the club more. A good PGA Professional that plays the game well and teaches the game competently is a source of pride for the members, especially when hosting guests. Our PGA Professionals keep up with latest trends and our PGA education centers on developing our PGA Professionals applied operational and strategic excellence to create a positive impact on the entire golf business. The true value of our PGA Professionals is through their ability to engage members and provide experiences to encourage more play and participation, which will increase profitability and is critical for long-term golf business sustainability. 3) How does the club benefit? The club benefits by having an engaged and well-informed membership that enjoys the game and that means more activity in all facets of the club. Not to mention, as noted above, the professional’s ability to create new member sales and improve member retention significantly are of great value to the club. They also benefit by the fact the local community sees the PGA Professional as a leader and someone golfers look up to and want to be around. As I like to say, what is more important than having enough members that are happy and supporting the club. An active club means it is a healthy club. 4) What do you see as the major issues clubs will be facing over the next few years? How can your association help? New member sales and retention are key issues facing our industry, and the PGA of America helps by training its professionals in all the areas that ultimately result in creating passionate club members who love the game as much as their professional does. The more someone enjoys the game, the more they use the club, eat meals there, entertain and tells their friends to join, and the better off the club will be. Additional comments: Professionals are the experts in the game and business of golf with a varied educational background. At a vast majority of clubs, golf and the golf course are the key assets, so it often is to the club’s advantage to have a PGA Professional in a leadership position given their knowledge of the game and their ability to create a first-class experience at all facets of the club. GORDON WELCH, PRESIDENT ASSOCIATION OF PRIVATE CLUB DIRECTORS
APCD is the only association representing the private club boards of directors. Welch began his private club career as a GM at the age of 26. He served as a GM for 25 years in some of our nation’s most prestigious clubs. He also served as senior vice president responsible for profes24
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sional development for eight years with Club Managers Association of America (CMAA) Gordon earned the Certified Club Manager (CCM) designation and is a member of the CMAA Honor Society. He was also elected to the CMAA National Board in 1996. Welch has served on many boards and is currently a member of the Capitol Hill Club in Washington D.C. 1) What are your goals with the association to help the private club industry? Our goal is to educate and inform the club’s board and committees to understand what their role within the club really is. We provide the information needed to govern the club, help reduce legal and financial liability and provide resources to benefit the organization. Benefit of these goals include collaborative governance, a lengthened tenure of the club’s executive team and less micromanagement, which can reduce a club’s effectiveness. 2) Education for your association members is a major objective of associations affiliated with the private club industry. Knowing at the end of the day the private club members are paying for your members’ association dues and continuing education, how does the club member personally benefit from that? Effective governance can be quite beneficial to the club and thus, the member. Recently one of our members experienced a strategic planning committee meeting where the committee was discussing the size, color and quality of tee markers. That is not the committee’s role; that’s the responsibility of the superintendent and the golf committee. Too many times committees work “outside” of their role as a committee advisor and try to direct the work (micromanage) of the staff and board. Our educational components include collaborative governance, fiduciary responsibilities, code of ethics for the volunteer board, effective oversight versus micromanagement, by-laws, tax issues, strategic planning, confidentiality, diversity, managing the renegade director and the role of all committees just to name a few. We have developed the best practices for the best partnerships with staff and committees. The club’s members benefit through an organized and well run club. Our board and committee education will reduce the stress of the unknown, through knowledge, clear communication and collaborative governance. The members will “feel” the difference in their club. 3) How does the club benefit? Simply put, when the board understands collaborative governance, the club will operate with confidence. The management team will have the strength, through this partnership, to operate the club at a higher level. It’s when trust is lost that the club operates in fear. SEE COVER STORY | 31
Don Williams Recognized with BoardRoom’s Lifetime Achievement Award By Eldon Miller
F
or those who know Don Williams today, it may be hard to believe this president of Club Technology Corporation (ClubTec) was once a lean soft-spoken young man, almost apologetic in his demeanor. Yet that is the Don Williams I first met in the late 1970s. Only a few years out of Southern Methodist University (SMU), representing his employer, Club Corporation of America (CCA), Don was a new face in a lineup of otherwise familiar speakers at a CMAA meeting I was covering in Dallas for Club Management magazine. Meek as he appeared, it didn’t take Don long to get attention. He bluntly told the club managers in the audience, many of them more than twice his age, that security in private clubs was in a sorry state. He declared he could walk unchallenged into any of their clubs and pass himself off as a member of a reciprocal club, purchasing goods and services at will. No one invited Don to the club to try it, but it is reasonable to assume a lot of managers had strong discussions with their own staff once they got back home. 26
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Don was a club manager at the time, at CCA’s Kingwood Country Club in Kingwood, TX. He was not destined to be a club manager long, however. His college education – he triple majored in marketing, accounting and finance – and entrepreneurial nature pulled him in another direction: creating an accounts receivable processing and financing company for hundreds of clubs on a large scale. Before the emergence of the personal computer in the 1980s, accounts receivable processing was a cumbersome, time-consuming task. Don saw an opportunity to help clubs with their receivables while at the same time establishing a successful business, Club Card Corporation. He was able to acquire a main-frame computer system to do the work. When personal computers became more popular and clubs began taking their billing back in-house, Don changed gears. Club Card Corporation in 1996 became Club Technology Corporation, the company that for the past 20 years has provided and maintained software systems for clubs.
Entrepreneur is not a word Don himself particularly likes. He feels the word is vague in that it connotes neither failure nor success. Yet for those who know Don and his 40year involvement in the club industry, the word seems appropriate. He epitomizes the entrepreneurial spirit of the many club vendors who see a need in the industry and respond to it. Don has founded or co-founded several companies that provide or have provided services to the private club industry. It would be impossible to know exactly how many clubs and managers have been served by one of Don’s companies, often without them ever knowing he was behind its creation or operation. One case in point, in 1989 Don co-founded the Private Club Advisor, a monthly business letter for managers, officers, directors and owners of clubs. Don is president of the letter’s corporate entity and is involved in the editing process. The PCA is the most widely read subscriberbased publication in the club industry. Until BoardRoom magazine was launched 21 years ago, the PCA was the only independent publication advising owners and volunteer leaders of private clubs. In 2012 Don launched Clubster, a social media platform designed specifically for clubs, enabling members of an individual club to communicate with each other in absolute privacy. Don has trouble containing his enthusiasm about the product. “Clubster has become the most powerful and exclusive private club communications and messaging app ever created,” Don said. “Clubster incorporates the benefits of a Facebook-type network, but with all the necessary privacy features required within the private club industry.” Clubster is now serving more than 500 clubs and organizations with more than 500,000 users. From Club Card to Clubtec, from the PCA to Clubster, Don has worked to make life better for those who oversee clubs. In recognition of his endeavors, Don has earned the 2017 Lifetime Achievement Award presented annually by BoardRoom magazine to a person who has served the club industry with distinction, honor and integrity. Over the years Don has been a spokesman not only for his own businesses, but the club industry in general. He has spoken at many national and regional club executive conferences and seminars, and hundreds of club board of director meetings. Don has authored numerous magazine articles for the club industry. Don was born in Omaha, NE, and grew up there and in Overland Park, KS, a suburb of Kansas City. Upon graduation from Shawnee Mission South High School in the Kansas City suburbs in 1972, Don received a scholarship to Southern Methodist University in Dallas. He graduated from SMU’s Cox School of Business in May 1976 with a triple-major bachelor of business administration degree.
Don’s employment with CCA began two days after graduation from SMU. He entered CCA’s private club management training program and worked at Brae Mar Country Club and Porter Valley Country Club in southern California. From there he was moved to Kingwood Country Club, Kingwood, TX, as assistant to the development officer and general manager. While Don’s club management career came to an end in 1980 when he founded Club Card Corporation, he still recalls vividly what club management was like, and he has a deep respect for club managers and what they do. “I have experienced the stress of putting on large holiday events, working hours that seemed beyond human,” Don said. “I learned that too often happy members neglect to praise while unhappy members are all too eager to share their views. Club managers should have hazard pay clauses in their contracts,” he declared. When reflecting on how the club industry has changed since the 1970s, Don focuses on the paid administrators. “General managers have become more executive leaders of their clubs, business CEOs and COOs,” he said. “Early in my career the GM was more of a high-end food and beverage guy. Today bigger clubs have moved beyond the term GM. They have real executives running multi-faceted, multi-million dollar companies. And there were few women managers,” he recalled. “Now there are great women in club executive positions.” Along with his career of service to the club industry, Don has also served on numerous charitable and business boards. He was a founding board member of Wednesday’s Child Benefit Corporation, an agency that finds homes for older children needing care. He has served on the executive board of the SMU School of Business, the Price-Waterhouse Coopers Athletic Forum, and the SMU trustees committee on athletics. He is married to Janet Yoder Williams and they have two children. He enjoys his family, fine dining, occasional golf and reading. We have been describing the Don Williams many people know. There is also a Don Williams few people know, the one who numerous times has reached out to friends and acquaintances when they needed a hand – the club manager who suddenly was out of a job, the man whose business failed and who needed time and space to seek a new direction. As one who got such an assist from Don and worked closely in founding and production of the PCA, I’ve watched Don come to the aid of others time after time, from giving someone a temporary job to providing someone office accommodations until he could get into a new venture. This is but another reason Don Williams is a worthy recipient of BoardRoom’s Lifetime Achievement Award. BR Eldon Miller is Editor-at-Large for the Private Club Advisor
MARCH/APRIL 2017 | BOARDROOM
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Peter J. NaNula
finance committee
Peter J. Nanula is chairman of Concert Golf Partners (www.concertgolfpartners.com), an owner, operator and all-cash buyer of private golf and country clubs. Nanula is the former CEO of Arnold Palmer Golf Management.
The Dangerous Illusion of Real Estate Value - Part II Whenever a private club considers anything of substance, there are town hall-style meetings. For clubs struggling with debt and mulling alternate capital structures, attendance is generally standing room only. In Part I (BoardRoom January/February 2017), I discussed why members gathered for these meetings typically misinterpret the real estate value of their club for its actual value as a club. If that’s the case, how should boards counteract this treacherous scenario, because if members think their club is worth $30 million and it’s actually worth $6 million, you’ve got a problem. At these member town hall meetings, I often start with a show of hands: “How many members would like to plow under the golf course for new homes, and get a check?” I’ve never seen a single hand go up. Virtually every club member is there for the camaraderie, the golf, the drinking and dining with friends, and the culture of the club that they have created. They don’t want to see it bulldozed, almost no matter the price. An extreme version of this debate played out in 2015 at Santa Ana Country Club in Southern California: A real estate developer approached the club’s board with a serious $200 million offer for their property. (Not a typo.) Each member, who originally paid $40,000 to $70,000 to join the club over the years, could have received a check for $450,000. You guessed it: The club voted down the proposal, instead opting to invest in some clubhouse and golf course improvements to preserve and enhance their club for the long term. The math is not usually this crazy, but the club member mindset is almost always the same. A typical member question, given the large difference between the rumored appraised value of the club’s land and the actual 0.8-1.2 x revenue value as a country club, is, “What happened to my equity?” The truth is, in most cases there’s no equity value left after adding up the debt and the capital needs of the club. If a club with annual revenues of $6 million has a $4 million mortgage and wants us to invest $3 million in capital projects on its wish list, there simply is no “equity” to be split among the members. When this reality is explained to members though, virtually all say that (1) they never truly expected to get a check 30
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back one day or truly viewed the club as a financial investment, and (2) they want their club to be preserved and enhanced forever. Another interesting phenomenon occurs when talking to boards about injecting millions into its member-owned club – to pay off bank debt and fund capital improvement projects. The board almost always votes unanimously in favor of this recapitalization, after carefully researching the pros and cons. But the board members are deeply concerned about what their members will think when the board presents such an historic change in the club’s governance and strategic direction. And yet the members routinely vote in favor, always in the 90-100% range! What causes this misplaced fear? And why is the concept so strongly embraced once fully understood by both boards and club members? First, boards at member-owned clubs are conditioned to fear the presentation of controversial proposals to the membership. Often they have already presented a seemingly straightforward capital project and seen either a “no” vote or weeks of resulting dissension among the membership leading to a split 50-50 or 60-40 vote – hardly a mandate for moving forward. After all, most assessments cause five to 10 percent of members to quit, so they recognize that every assessment has risks. Second, no one feels like they chose to serve on the board to sell the club or bring in a capital or operating partner. Couple this with fear of member dissension and their attitude is, I didn’t sign up for this. Our advice to board members, after 20-plus years of painful experience in club boardrooms, is to borrow less than 50 percent of the appraised value as a country club. This means a smaller bank loan, but a manageable one that can be paid off relatively quickly in almost any circumstances. This way, the debt financing will not crowd out cash needed for continuing capital improvements. Otherwise, use equity – either from a well-capitalized owner-operator who comes with hospitality operating expertise – or equity from a small group of wealthy members who have the cash to contribute without necessarily expecting repayment like a bank. BR
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While a bit frightening, Jim Collins points out in his book that clubs or companies fail in stages. Stage 1: Hubris Born of Success Stage 2: Undisciplined Pursuit of More Stage 3: Denial of Risk or Peril Stage 4: Grasping for Salvation Stage 5: Capitulation to Irrelevance or Death from Cover Story | 24
4) What do you see as the major issues clubs will be facing over the next few years. How can your association help? Private clubs are facing many challenges, some of which begin in the boardroom. For instance, privacy issues, whether it is security of your member’s sensitive information on computer platforms or the text “chit-chat” that happens after a board meeting. The way information is handled is a challenging issue and is becoming more complicated every day. The role and responsibilities of board members must be well understood and adhered to, so they are not personally liable for their actions. Board members operating outside of their responsibilities are at risk for personal lawsuits.
It’s almost as if Collins was writing specifically about the private club industry, its meteoric growth in the late 1980s and 90s to where we are today. However, stages one through four are remarkably reversible with vision, determination and team. It is indeed an art to remain significant! BR
Generational differences throughout the club (members, professional staff, employees) will continue to be exposed in everyday club services, as the older member is seeking tradition and the younger member may be seeking expedited services. Clubs need to prepare for this now to meet the demands of all their members so their clubs can continue to grow and thrive. 5) Additional comments: There will be many difficult decisions facing the board of tomorrow. The average private club board will completely turn over every three years. Continuing education for your board members is of utmost importance for protecting your club and carrying it and your club culture into the future. BR
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It’s Summit Time Again!
The 2017 Distinguished Ideas Summit is Heading to Southern Florida By Heather Arias de Cordoba
the three-day Summit for Distinguished Clubs from Boardroom magazine is scheduled for Sunday, Monday and tuesday, October 1-3 and will be hosted by three private clubs in southern Florida – Boca West Country Club, the Polo Club of Boca raton and Woodfield Country Club.
The Summit will also be an opportunity to honor Jay DiPietro, the King of the member experience, as he celebrates his last day as president, following a 30-year career with Boca West. “We’ve been so fortunate to have these clubs work with our Distinguished Ideas Summit,” expressed John Fornaro, BoardRoom’s CEO. “And we look forward to another outstanding Summit for our Distinguished Clubs. “We’ll also be able to honor Jay DiPietro…the person who helped create the whole Member Experience and that’s what this conference … Summit 17… is all about.” BoardRoom’s Distinguished Clubs are truly a special grouping of private clubs…exceptional clubs based on their extraordinary delivery of a first-class Member Experience to every one of their members, and Summit 17 gives general managers, board members and leadership staff from distinguished clubs an opportunity to learn from other GMs as they explain how they’ve created memorable experiences for members of their clubs. “To this day, there isn’t a club we survey that we don’t discover and learn several new ideas about the Member Experience that are completely unique to that club. And we’ve also learned that each Distinguished Club has very talented club managers,” touted Keith Jarrett, president of BoardRoom Distinguished Clubs. “We’ve had such success in discovering and rewarding the top clubs for their Member Experience that we felt it was vitally important to bring the Distinguished Club managers together to share their unique ideas,” explained Fornaro. “With the Summit, we must walk the talk. The club leaders are our members…our customers and we must give 32
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them great service and a great Member Experience like they’ll create for their members. That’s our objective.” Attendees also will be able to experience the incredible new social space at Boca West Country Club, the new state-of-the-art family friendly facilities of Woodfield Country Club and the one-of-a-kind social experiences at the recently renovated Polo Club of Boca Raton. BOCa WeSt COuNtry CluB
Boca West Country Club, is home to more than 3,380 families (about 6,000 residents), the community’s 54 villages are surrounded by waterways, lush landscaping, four championship golf courses, 29 Hydro tennis courts and two U.S. Open Cushion Courts with eight Pickleball courts. For DiPietro, Boca West’s new $50 million golf and activities center – a 153,000 square foot clubhouse – defines a new era of luxury living for its members, who already enjoy Boca West’s unparalleled amenities and services. It’s a crowning achievement in Jay’s long career at Boca West, that started out with “humble beginnings. “These humble beginnings turning into successes, allowed me to realize how fortunate and lucky I am,” DiPietro expressed to BoardRoom in an earlier interview. “It allows me to help others succeed and achieve their goals, whether through my mentoring of staff or working to raise funds for charities that help kids. It always leaves me feeling fulfilled and energized. The club industry has allowed me to work with people focused on improving the lifestyles of both the members and the staff. That’s really gratifying. “Our members are thrilled to add this spectacular new clubhouse to the one-of-a-kind amenities,” said DiPietro added. “We built this $50 million clubhouse without a member assessment, because of strong stewardship of membership dollars. I believe we have accomplished our dream of creating an extraordinary new facility that is aligned with our notable stature as being the number one private residential country club in America.”
Matthew Linderman, Boca’s, newly appointed general manager succeeding DiPietro, views the development as a “long term investment. “We feel we have more than just a new clubhouse, it’s a long-term investment in the iconic lifestyle we personify at Boca West,” said Linderman, who oversaw much of the construction as the club’s assistant general manager.
The country club features an 18-hole championship golf course, nationally recognized tennis program, expansive fitness center and exquisite spa and salon. The brand new pool complex features a resort-style swimming pool, lap WOODFielD COuNtry CluB pool, three playgrounds and beautiful “I am looking forward to the upcoming Summit,” added Eben Molloy, Wood- poolside dining venue. field’s general manager. “It’s a wonderful gathering of peer leaders from the The completely renovated main clubbest clubs in the country and the exchange of ideas is invaluable.” house offers luxury restaurants, a comWoodfield Country Club is a family-oriented social and recreational fullprehensive golf center, card rooms, service equity country club featuring a wide range of residential selections meeting spaces and an exclusive balland world-class, resort-style amenities. room. A dedicated children’s clubhouse caters to the club’s youngest members with a game room for teens and babysitting for youngsters. A full array of social events is scheduled throughout the year with members of all ages in mind. the POlO CluB OF BOCa ratON
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“The Polo Club has continuously pushed the threshold of member satisfaction and one-of-a -kind member experiences by implementing new ideas, creating new events and building on a foundation of successful past events,” expressed Brett Morris, the club’s general manager. The club offers its members more social activities than any other country club in the area. The Polo Club recently rebranded and redesigned all dining venues as part of a $25 million clubhouse renovation. “We created individual concepts and identities for each restaurant through menu, décor, uniforms, table settings, ambiance, lighting and music. This has enabled us to keep our venues fresh and exciting. The club has also introduced “Dining to Your Door’…a food delivery services that allows members to dine in the comfort of their own homes, and a Golf GPS Menu, by which food is delivery directly to members within 15 minutes after their order from their carts. BR
headshots Pictured f ro m to P l e f t : E b e n M o l l oy, g e n e ra l m a n a g e r, Wo o d f i e l d Co u n t r y C l u b; B ret t M o r r i s, g e n e ra l m a n a g e r, The Polo Club of Boca ra to n ; M a t t h ew l i n d e r m a n , n ew l y a p p o i n te d g e n e ra l m a n a g e r, B o c a We st Co u n t r y C l u b; Jay D i P i et ro, outgoing president/CO O, B o c a We st Co u n t r y C l u b club Photos: 1-2) Boc a We st Co u n t r y C l u b’s N ew $ 50 M i l l i o n C l u b h o u se
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BONNie J. KNutSON
MeMBeRship Musings
Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of hospitality Business, Broad College of Business, Michigan State University, Dr. Knutson is a member of the Country Club of lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu
Your Club’s Marketing’s Four Aces i learned marketing at my dad’s knee. even though he only had an eighth-grade education, he instinctively knew that the most important real estate in marketing is the six inches between the consumer’s ears.
He would often tell me that marketing has nothing to do with our store itself, but had everything to do with how people think about our store. Little did either of us know that Al Ries and Jack Trout would encapsulate what my dad always believed in their benchmark book, Positioning: The Battle for Your Mind. Their revolutionary approach said that a business’s marketing strategy must create a “position” in the consumer’s mind that reflects the brand’s strengths and weaknesses as well as those of its competitors. Or as the 1944 song says,” You’ve got to accentuate the positive, eliminate the negative. latch on to the affirmative, don’t mess with Mister InBetween.” Developing a positioning strategy for your club may seem like a daunting task. After all, there are countless how-to books written about it. Industry magazines are awash with articles about how this or that club did it. And then there are the presentations at world conference,
Different. Your challenge is to identify which one of the four strategies will yield your club’s most effective marketing efforts and then build on it. Original– Strategy number one is to position your club as the first in your segment in your market area. Being first in a category simply means that the brand is the earliest one in the market that fulfill members’ or prospective members’ needs. This strategy communicates originality and expertise in the category. There is no substitute for being the real thing; all others become merely derivatives. By being the original, you delegate competitors to a copycat position; i.e. akin to being a reproduction of a masterpiece. The classic example of this strategy is, of course, CocaCola. Born in Atlanta, Georgia on May 8, 1886, pharmacist Dr. John Stith Pemberton created the syrup that would be teamed with carbonated water to produce the first drink giving consumers “a moment of refreshment for a very small amount of money.” This simple strategy launched a global identity that operates in more than 200 countries. Coca-Cola positions itself as the “real thing.”
What if your club is not the original at something, is not the biggest something, or is not the best in something? What positioning strategy is left for you? Fortunately, there is a fourth strategy, which we call different. And this is the one that most of you will adopt. Being different communicates the benefit of having a unique attribute or benefit that is unlike any offerings currently available. In looking at the retail market, there are examples such as Starbucks, with a differentiated coffee experience, Pringles, with differentiated packaging, or Bubba Gump Shrimp with its “Run, Forest, Run!” service style. chapter meetings, seminars, webinars, ad infinitum. Not to mention the many consultants out there. These sources are valuable and can provide significant insights into marketing your club. But the sheer numbers of resources that are available make the whole thing seem mind boggling and complicated. It’s not. It’s not because there are basically four – and only four – positioning strategies any club can adopt. Think of them as your marketing’s Four Aces: Original, Largest, Best and 34
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If your club’s strategy is to be positioned as the original, it becomes seen as the real thing; all others in your competitive area must be copies. How cool! The beauty of being defined as the original is that, by definition, there is only one brand with this standing. Remember, there can only be one St. Andrews, the home of golf. If you are not really the original, you can still be perceived as being first. The key is staking your claim on a
specific attribute of your club. Maybe your property can lay claim to being the first to be certified as totally “green”, or maybe your clubhouse is listed on the historic register because of its celebrated architecture. In each of these cases, you have an attribute on which you can build a marketing strategy as the first. Biggest – Strategy number two is built on size or market penetration. Your club can be the biggest or largest within your competitive area in terms of membership or revenues. It communicates the credibility of being the leader in its field. It can often result from the fact that your club was first in its category and established a strong membership base (market share) before serious competitors entered the fray. This strategy evolves over time and implies consistency in providing outstanding facilities, programs, and service. In non-club industries, Microsoft, McDonald’s, and Home Depot are all cases in which their category leadership position evolved, allowing them to embrace the biggest or market leader strategy. Here too, even though a brand may not be the biggest in its category, it can still employ a market leader strategy by identifying a single attribute in which it can be perceived as being the biggest. Perhaps you are a seaside yacht club with more slips in your marina than any other in the coastal area, possibly your club boasts the largest number of family/kids’ programs in the region or maybe it has a ballroom that can seat more than any other venue in your state. Here again, only one club can enjoy the position of biggest or market share leader in its category. By default, then, all competitors become inferior on that attribute. Better – Strategy number three establishes your club as the best or better than all its competitors (and that can include non-club brands). Being better communicates having superior facilities, products, and services to the inferiority of the competition. By being the best, you can derive a “We’re No.1” strategy, much like Target does in the upscale-discount category, Southwest Airlines accomplishes in the low-cost airline class, and FedEx achieves it in delivery speed when shipped packages “absolutely, positively has to be there overnight.” And, again, a club brand can also be perceived as being better if it identifies a specific attribute and positions on it. For example, yours could be positioned as having the area’s most outstanding dining experience because it boasts a chef whose excellence has brought a high number of honors and awards throughout the years. It may position itself as being the most exclusive because its membership roster includes all the “movers and shakers” in the
city. Or it can claim the offering the most challenging golf course with the highest slope rating in your state. But, again, only one club in your market area can effectively claim the positioning strategy of being best in its category or perceived as best on a given attribute. Be Different – But what if your club is not the original at something, is not the biggest something, or is not the best in something? What positioning strategy is left for you? Fortunately, there is a fourth strategy, which we call different. And this is the one that most of you will adopt. Being different communicates the benefit of having a unique attribute or benefit that is unlike any offerings currently available. In looking at the retail market, there are examples such as Starbucks, with a differentiated coffee experience, Pringles, with differentiated packaging, or Bubba Gump Shrimp with its “Run, Forest, Run!” service style. For Sherwood Forest Golf Cub, it’s the famous llama caddies. For SoHo house, it is its niche membership of people in the creative fields. And for Houston Oaks, it is its extensive kid-friendly offerings. What unique attribute makes your club different? Whichever one your research and analysis identifies, embrace it and make sure all your marketing efforts communicate that uniqueness. About now, you may be thinking that your club can fit into more than one of these four positioning quadrants. That’s possible and may even be probable. After all, WalMart could readily position itself as being the original, being the biggest, being the best, and being different. Ditto for brands like Disney, Nike, and Whole Foods? Each of these successful brands is smart enough to use all its communication tools to clearly position itself in a single quadrant. They know that, in this overly communicated and highly competitive environment, their brand must be known for something that clearly sets it apart from its competitors. It must be the same for every club. So remember four truisms: First, never confuse people. They don’t buy when they are confused. Second, positioning means is that your club must establish a clear, concise and desirable image in those six inches between members’ and prospective members’ ears. Third, to achieve this, you must identify and must adopt a positioning strategy strongly rooted in one of these four quadrants: original, biggest, best, and different. And fourth, while you might be able to position your club on many of its attributes it must decide on the one that gives you the most optimal image in your market. Finally, if you have never read the Ries and Trout positioning book, put it on your reading list today. Although it was originally published in 1981, it is as relevant today as ever. Your bottom line will thank you! BR MArCh/APril 2017 | BOARDROOM
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Boardroom magazine
Excellence in Achievement Awards
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1. Tennis Supply Company | 10-S tennis Supply 2. Outdoor Cooking Equipment | Big John Grills & rotisseries 3. Procure to Pay System | BirchStreet Systems inc. 4. Master Planning | Chambers (tie) 5. Payroll Company | ClubPay 6. Safety Products and Equipment Firm | Clubsafe 7. interior Design Firm | C2 limited Design associates (tie)) 8. Gaming Company | Cornilleau 9. Green Product | Bambrella 10. Membership Marketing | Creative Golf Marketing 11. Kitchen & Foodservice Equipment | D.e.i. Food Service 12. Photography Firm of the Year | ea Photography 13. insurance Provider | Golf insurance Services from epic 14. Chair Manufacturer | Daniel Paul Chairs 36
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15. F&B Management Software | FOOD-traK 16. Club Communication Firm | Clubessential 16. Website Company | Clubessential 17. Sustainability Program | SeS lighting 18. Apparel Provider | high end uniforms 19. locker Firm | hollman, inc. 20. Clubhouse renovation | Judd Brown Designs inc. (tie) 21. Outdoor Furniture | Seaside Casual Furniture Company 22. interior Design | lichten Craig architecture + interiors (tie) 23. Club Program | KeCamps 24. Gary Player Educator of the Year | lynne laFond Deluca 25. Club Management Software | Northstar 25. Mobile Member Communication | Northstar 26. Association Program | PGa of america
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27. Boardroom magazine Dedication Award | Philip Newman 28. Architectural Designer | Peacock + lewis architects and Planners (tie) 29. Consultant Company | reid Consulting Services inc. 30. Architectural Designer | rogers McCagg architects (tie) 31. Tax Consultant | rSM uS 32. Clubhouse Signage | Signera - Digital Signage 33. linen Provider | Something Different linen 34. Amenities Provider | Sports Solutions 35. Purchasing Program | Xhibtz Contract Furnishings 36. lifetime Achievement 2016 | Don Williams 37. Jay DiPietro Vendor of the Year | Bill Schwartz 38. Furniture Manufacturer | Gasser Chair Company 39. Club Management Firm | troon Golf Management (tie)
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40. Clubhouse Dining room & lounge | harris interior Designers 41. real Estate Services | hilda W. allen real estate inc. 42. Banquet Equipment | Spring uSa 43. Management Consultant | Denehy Club thinking Partners 44. Association of the Year | hFtP 45. Executive Search Firm | Kopplin Kuebler & Wallace 46. Master Planning | McMahon Group (tie) 46. Membership Survey | McMahon Group 47. research and Data Firm of the Year | Club Benchmarking 48. Tennis Court Builders | Welch tennis Courts, inc. 49. Clubhouse renovation | Marsh & associates, inc. (Mai) (tie)
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NOt PiCtureD Banquet Supplies Company of the Year | eastern tabletop Club Management Firm | KemperSports (tie) Fertilizer Firm | Grigg Brothers Golf Course Design | George Golf Design, inc. Golf Course Maintenance | international Golf Management (iGM) innovative Product of the Year | GolfBoard law Firm of the Year | addison law logo Apparel and Design | ambassador uniform Patio heater Supplier | Dayva international
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riCK laDeNDOrF
wellness committee
rick ladendorf is the president of Prevo health Solutions, a wellness solutions provider, executive producer of the AMEriCA’S hEAlThiEST ClUB© wellness rating program and founder of the Wellness Project. Contact rick ladendorf at (949) 933-5470 or rladendorf@prevohealth.com
Farm-to-Table Programs Offer Appealing Programs Outside the gates, there are fresh format restaurants trying to lure in private club members, and many clubs are fighting back with their own version of farm-to-table solutions that are relevant to their members and families. Clubs that have developed a culture of mindful/healthy living have greater member engagement, generate more referrals and have lower health care costs than club’s that don’t. Healthy clubs attract and retain fitness enthusiasts, foodies and more specifically, people that live moderately healthy and active lifestyles. Many are not avid golfers. These active and healthy Baby Boomers, Gen X’ers and Millennials have similar interests when it comes to the ingredients and preparation methods of the food they eat. And many would make ideal social or sports members if they knew about the lifestyle that exists at a private club! So how does your leadership team create the right culture, build the right amenities or design the right programming to appeal to these targeted populations? The answer is…it depends. It depends on location, socioeconomic status, amenities, staff and a host of other variables. But, the club future is bright, club leaders understand the importance of offering amenities, programs, activities and most importantly farm-to-table solutions that appeal to new and existing members. Here are four clubs in Arizona, Minnesota, Illinois and Florida that have successfully implemented farm-to-table programs. With these programs, these clubs attract and retain members and staff, and most importantly, provide a member experience not available outside the gates. DeSert hiGhlaNDS, SCOttSDale, aZ
Chief Operating Officer Terra Waldron, a recognized club leader across the country, leads Desert Highlands, a club that’s a founding member of the Wellness Project, is one of America’s Healthiest Clubs and has been featuring farmto-table solutions for nearly five years. What began as a simple idea – offer a few healthy options on the lunch menu and call it Wellness Wednesdays – has morphed into an onsite garden where the ingredients are 38
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harvested in the morning and served at lunch. This hyperlocal sourcing is eco-friendly and the member gets the freshest ingredients and the maximum nutrients for their buck. “While it hasn’t been easy to grow a garden in the desert given the heat, birds, rabbits, coyotes, insects and the Javelina (a medium-sized animal, with a strong resemblance to a pig), we have persevered and found a way to co-exist,” expressed Waldron. “The team has done a fabulous job fighting the elements, and thank goodness our members have embraced the garden and the farm-to-table theme, because the first year was kind of rough. Coincidentally, Wednesday nights have become one of our busiest.” The quarter acre organic garden located near the club’s maintenance area doesn’t grow enough to replace U.S. Foods, but, in addition to the added menus items, it does provide another benefit. It stimulates conversation about food and health. The garden is a collaborative staff effort that involves people that enjoy being part of the farm-to-table process. At Desert Highlands the chef, sous chef, and superintendent grow and harvest the food, the kitchen staff preps the food and the server serves the food. It’s a real team effort with a lot of pride in the lifecycle of food. In addition to Wellness Wednesdays, each week Chef Dan Chagolla offers a healthy special on the menu that uses ingredients grown in the garden, sources local proteins and uses minimal oils, fats, sugar and salt.
Pictured left to right: Terra Waldron, COO, Desert highlands and Chef Dan Chagolla
Over the last five years, there’s been a significant increase in health and wellness interest at different private club types, and more specifically, the move toward farm-to-table food solutions.
“The members were astonished we had grown tomatoes, squash, mint, and green onions. And for the Kentucky Derby we used the fresh mint from our garden in our Mint Julips, ‘I do declare,’” Waldron exclaimed. Waldron and her team continue to enhance the thematic farm-to-table program with field trips to local farmers to educate both employees and members, but most importantly, it’s another great way to keep the members healthy and happy. VeNiCe GOlF & COuNtry CluB, VeNiCe, Fl
The Venice Golf & Country Club is eco-friendly and focused on sustainability. The club has invested significant time and money on capital projects that include geothermal heat pumps, demand control ventilation, occupancy sensors, LED conversion and more. These changes have reduced the clubhouse electrical consumption by over 40 percent since 2006, saving about $240,000. “We base our sustainability decisions on three principles. Do our members want it? Are they willing to pay for? Will the environment benefit from it? It’s really that simple,” said Jim Schell, the club’s general manager. The club developed a sustainable source of water to irrigate their property year-round by capturing and storing rainwater that falls on their property during the rainy season. This reduces storm water runoff into the estuary and virtually eliminates the club’s dependence on ground water withdrawals and regional affluent water sources.
While these projects may not be directly related to farmto-table, it does show the club’s commitment to doing the right thing for its members, the local environment and the community. Executive Chef Jay Alfes is passionate about the ingredients he uses and sources nearly 95 percent of all ingredients locally. The club supports the local farmers and incorporates seasonal produce in the ever-changing menus. Schell and Alfes collaborate often to discuss menus, member interests and member health needs as a way of providing an exceptional member experience. ➤
Pictured left to right: Executive Chef Jay Alfes and Jim Schell, GM, Ve n i ce G o l f & Co u n t r y C l u b
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from Wellness Committee | 39
“Our members have come to expect locally grown, fresh, organic and nutrient dense foods, and they appreciate the ancillary things we do to help support the farm-to-table solutions,” explained Schell. Some of these solutions include: • Chefs participating in local farm tours and seminars showcasing sustainable practices • Seasonal organic herb gardens that supplement food purchases • Chef Jay writes a section in the monthly Legend newsletter explaining to the members where the food comes from • Club member Jean Dugan writes notes from your club health action program in the Legend newsletter, which includes health tips and educational content that helps members deal with health conditions and ailments • Venice U, a club within the club, distributes a publication that lists all of the upcoming educational classes, lunch ‘n learns, and events and activities, many of which are geared toward nutrition and health and wellness. Articles include Creating Your Perfect Health, which identify imbalances in the body and the types of foods to improve vision, digestion, balance weight and stress as well as techniques for vitality, mental clarity and energy • Additional classes include a meditation course that promotes lower blood pressure, cholesterol and triglycerides and helps build the immune system, which helps with memory • Good-Natured Walk is another club within the club that focuses on getting outdoors, exercising and reducing stress. The club’s tagline is, stop and smell the roses, and • The Venice Golf & Country Club is in the process of applying to become a Healthy Sarasota Workplace. This is modeled from the Center for Disease Control (CDC) worksite program, which focuses on employee health and nutrition.
The Venice Golf & Country Club is a private, gated and member-owned community, recognized as one of America’s Healthiest Clubs and one of the founding members of the Wellness Project. MeDiNah COuNtry CluB, MeDiNah, il
Purpose first, function second! These are the words that Robert Sereci, general manager and COO of one of the most iconic golf clubs in America evangelizes every day. In just 18 months, Sereci has led his team and developed a farm-to-table program that resembles the Mediterranean lifestyle, where families eat seasonal, local and fresh food together. “It’s about getting back to the basics, when people had a more intimate relationship with their food, from growing, to harvesting, savoring and celebrating food as a part of each day,” explained Sereci. “For many, the love of garden fresh food is a lost art, but Medinah Country Club has found a way to bring the love of fresh food back and made it a part of the member experience.” Breakfasts are as fresh as they In addition to choosing to live healthy and active lives, members have donated over come. “Most our daily Tee Off Break$386,000 to 62 different local non-profits though their foundation since 2005. The fast Buffet comes from products foundation has helped stock food pantries, support fitness/recreation therapy programs grown on our property,” Sereci said. for people with mental illness and sponsor mentoring programs for troubled youth. Named after one of the original landholders who owned the land long before the club existed, Meacham’s Garden now houses 25 raised garden beds with 17 varieties of savory herbs for garnishes, 34 different fruits and vegetables, and six varieties of fragrant and edible flowers. “Our fruits are used to enhance our cocktails, and our homegrown vegetables and fresh herbs are used for special selections on our Garden Menu,” explained Sereci. “Tap the maple tree and serve fresh maple syrup on the pancakes. Check the chicken coop and you have USDA certified eggs from 40 grass-fed chickens for the omelet. Walk over to the garden and pick some tomatoes, pull some onions, clip some spinach, grab a pepper or two and pull a fist ClOCKWiSE FrOM lEFT TO r i G h T: M e d i n a h Co u n t r y C l u b G M /CO O ro b e r t S e re c i , M e a c h a m’s Garden, the club’s chic ke n co o p, t h e c l u b’s fo o d t r u c k .
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full of flowers for the table. Get the kids involved, and you have an event. Now that’s farm-to-table! “Tables and chairs are placed around the garden, where members and their children visit, interact with the hens, garden, have a cup of coffee, and enjoy a little nature break from their busy lives,” Sereci enthused. Medinah is one of the first private clubs to purchase a food truck that’s used to promote unique wedding offerings, augment the courses halfway houses, and provide additional food outlets for tournaments, club events and demo days. In addition, the food truck generates visibility in the community and extensive opportunities to generate public relations and community support. Medinah Country Club is a club with a long-history and tradition of being a true golf club, but the times are changing. Medinah may not have a fitness center, but the clubs’ members certainly have embraced health and wellness, which began with a simple farm-to-table program. “We have a responsibility to be stewards in the community, on behalf of our stakeholders/members and to our staff. When we do good things, the market responds in a favorable way and rewards us with new members, access to great staff and free earned media, all of which helps to build the brand, protect our assets and grow the membership,” Sereci added. In addition to the farm-to-table program, and as part of their recent renovation initiatives, Medinah is building a racquet center complex with four tennis courts, four pad-
dles tennis courts, and a warming center, all overlooking Lake Kadijah. A new golf performance center with three golf simulators, two teaching bays and a golf fitness area rounds out options for living a healthy lifestyle. Construction will be finished later this year. Laura Brown and her family, Medinah members since 2016, are excited to use the new amenities. “It’s hard to find one club with so many amenities. Between the pool, golf and now tennis, we can spend our summers all in one place, and not spend time in the car commuting.” tOWN & COuNtry CluB, St. Paul, MN
The farm-to-table program at Minnesota’s first private club generates hundreds of thousands of dollars of free earned media, which has helped sell memberships and provide the members with a five-star culinary experience. Town & Country was the first private club to earn the Green Restaurant 2-star and 3-star designation. The purpose of the Green Restaurant Association’s (GRA) standards is to provide a transparent way to measure each restaurant’s environmental accomplishments. “The club started on the path of sustainable, local sourcing decades ago,” explained Jim Sargent, the club’s assistant general manager. “As with many clubs, Town & Country maintains a garden close to the clubhouse for the chef and culinary team and even for the bartenders who need items such as mint for the ever-popular summer Bootleg cocktail. ➤
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ClOCKWiSE FrOM lEFT TO r i G h T: Tow n & Co u n t r y C l u b g a rd e n , J i m S a rg e n t , A ss i st a n t G M , and Chef David hoffm a n
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“Another long-standing sustainability tradition has been Breakfast with the GM, which encourages camaraderie and team building with a shared meal and staff scavenger hunt, sourcing products at our local farmers’ market on weekend mornings. “The club does everything it can to reduce its footprint on all fronts, from attending county master-recycler courses to bringing the most local, fresh and sustainable products home to the club, such as Craft-raised Salmon. The result of reducing our environmental footprint has lowered the cost of operations and improved food quality, reaping the bounty for the club membership,” Sargent added. Recently Town & Country Club partnered with the University of Minnesota to research ways to build a bee farm among the newly installed solar arrays above the turf grass management facility. The club hosted a groundbreaking reception for the U of M’s new bee research facility and hosts the research network’s annual Bee Meeting. In addition to producing hundreds of pounds of tasty honey to use as a sweetener, honey has medicinal purposes and helps reduce seasonal allergies. The honey harvested for the members and culinary staff may one day become a glass of club-made mead. In addition to the tasty treats they provide, bees are also great for pollinating the club’s array of pesticide-free flowers grown on the property. This collaboration benefits science, the local community and environment, along with rewarding our club membership. The club is also one of the 20 founding members of the Wellness Project, was the first club in Minnesota to be certified as one of America’s Healthiest Clubs and in 1998 became a Certified Audubon Cooperative Sanctuary. here’S hOW it’S DONe
Thinking about implementing a farm-to-table program at your club? If so, here are some other farm-to-table ideas that any club in America can implement. 1. Create a club within the club aka Affinity Club for horticulture or gardening. 2. Organize member and staff tours to local farms. 3. Host lectures and invite local farmers, dieticians and hospital staff. 4. Brand your wellness program and integrate lectures, cooking classes, menus, meal-plans and write about it in internal and external communications. 42
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5. Create standalone vegetarian and gluten-free menus. 6. Consider creating Doctor’s Orders branded menu items that include items like antioxidant salads and smoothies. 7. Subscribe to Rouxbe and provide education for the F&B staff on how to prepare plant-based whole foods. 8. Host a recipe rehab dinner and cooking class in conjunction with a local nutritionist. 9. Place hydroponic gardens built from refurbished containers on property and serve fresh greens and herbs harvested the same-day. 10. Educate the members on where the food comes from and more importantly the health benefits of the ingredients used in the kitchen. Incorporate the message in the newsletters, targeted emails, website, social media and most importantly the servers and member facing staff. Every club is unique and so are their growing seasons. Clubs in California and Florida have access to year-round fresh produce, seafood and organic beef and poultry and will therefore have more robust farm-to-table program than northern clubs. However, there are alternative sources for fresh ingredients from local traditional soil-based farming, cropping up from Alaska to Florida. The alternate sources are technology based controlled environment agricultural solutions where fresh, local food is grown, hydroponically indoors, 24/7, 365 days a year. The Wellness Project mission – including these four clubs as founding members – is to strengthen the private club industry by collecting, organizing and sharing wellness related bestpractices with members of the America’s Healthiest Clubs network and define the standards of wellness and the impact it has on sustainability, relevance, retention, recruitment and the member experience. BR
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MaCDONalD NiVeN
on the fRontlines
MacDonald Niven, MA, CCM, CCE is with Niven research and general manager of Almaden Golf and Country Club, San Jose, CA. he can be reached at (510)-439-8522 or via email: mac@niven.cc.
The Expansive Representation of One Member Mark stormed up to the first tee box, “Bob, you’re the president, what are you doing about these bunkers, they’re terrible? I had buried lies or hard pan. I couldn’t get out of any of them.” President Bob called superintendent Jim, “Jim, what are you doing about these bunkers? I’ve got Mark and all the members complaining about the conditions.” Jim radioed assistant superintendent Robbie, “Robbie, I thought we had a good plan to keep these bunkers groomed. Did you follow up and see that Billy is following our procedures?” And, Robbie spoke to section person Billy, “Billy, what the heck? I’ve got Jim all over me about these bunkers. What are you doing?” President Bob was on the first tee getting ready to play when Mark, a weekend golfer who only knew Bob because of his presidency, shared his frustration about his bunker play. Bob immediately called Superintendent Jim (using his cell phone from the first tee, a clear cell phone violation) as his fellow players looked on, to share his frustration over Mark’s complaint. Jim radioed his assistant Robbie and shared his frustration over the bunkers, and Robbie went to the break room, where Billy was enjoying his lunch break, and shared his frustration. Quite a lot of frustration on this particular morning.
into the original divot, which was now down to the liner because of the previous two hacks. He took a nine, with about an 18-footer. Boy, he was mad!” Chris seeing the joy in their eyes, smiled and asked “What’s this all about?” “It was Mark, he had a great round going until 18 and then he bunkered. Oh, it was priceless, we’re not sure where he is now, but it can’t be good. Hey, Chris, maybe you should be on suicide watch. Boy, he was mad!” At that point the group clapped and cheered as Mark walked in with a sheepish grin on his face. “That was pretty rough! I’m sorry to say that I just gave it to the president.
Members have preconceived ideas of what powers and capabilities the president has. Unfortunately, with the average club being over 400 members, that means a lot of differing expectations...Being president carries a great deal of weight and peer pressure can be significant. Understanding those pressures, being prepared for our natural tendencies, and taking a moment before responding may help make the journey a smooth one, because it will surely be eventful! Manager Chris was walking through the Grill when he heard a commotion: one member in animated conversation with six others all grinning, laughing, and virtually in tears as the story unfolded. “Man, he chili dipped his first one and it rolled back into the divot. Then he topped it into the bunker face. He tried to hit it out to the side, fanned it, and jammed it further into the face. Then he just hacked at it and it rolled back 44
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Poor guy was on the first tee. I need to apologize to him the next time I see him. Chris, maybe you could send out his favorite drink and tell him it is from me – better make it for the whole group, I feel awful!” There was a good bit of activity at the course in the short span of five minutes with even more consequences. Each of the issues has a normal basis and, while most likely not happening daily, is quite common around clubs.
Mark was simply frustrated at his poor bunker play. There was nothing wrong with any of the bunkers, he was just venting his frustration and Bob was in the wrong place at the wrong time. Bob, as president, has a more interesting side. Members have preconceived ideas of what powers and capabilities the president has. Unfortunately, with the average club being over 400 members, that means a lot of differing expectations. While Bob has his own ideas of his responsibilities and powers, Mark set the tone when he said “… you’re the president, what are you doing…” Under situations of uncertainty, such as being accosted on the first tee, the Uncertainty Reduction Theory suggests that people naturally tend towards conforming to their peers’ views. In this case Mark was looking for, and expecting action. Behavior Confirmation Theory suggests that Bob’s actions are natural in confirming Mark’s projection that Bob is in charge and should do something. Additionally, research tells us that a label is very influential in the dynamics of social interaction. By specifically reminding Bob that his “label” is president, Mark influenced Bob’s response. In the time it took Mark to hiss out his statement to Bob, about seven
seconds, all these natural influences overcame Bob, and he acted. He probably didn’t even realize why he was doing what he was doing, he just did it. To further promote the importance of the issue to superintendent Jim, Bob added “all the members” confirming the Expansive Representation of One, a naturally occurring phenomenon in the club business whereby one person can make a statement to an official and it takes on extraordinary importance as if it represented “all” the members. Sometimes the person is a friend whose opinion carries more weight or, in this case, a person who has hit the right buttons to naturally influence another person. To combat these natural forces, one age old technique might be helpful: Thomas Jefferson was noted as saying, “When angry count to 10, when very angry one hundred.” Being president carries a great deal of weight and peer pressure can be significant. Understanding those pressures, being prepared for our natural tendencies, and taking a moment before responding may help make the journey a smooth one, because it will surely be eventful! BR
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MitChell l. StuMP
finance committee
Mitchell l. Stump, CPA was recognized by Golf inc. as one of the Top 10 most called upon consultants in the industry. look for his soon to be released 2nd addition of Club “it’s All About Golf” Book subtitled: “Same Theory, More Questions, More Proof”. he addresses non-member revenue with private club subscribers almost daily. www.clubtax.com
More Best Practices For Private Clubs recently certified public cccountants and attorneys serving the private club industry, at a conference discussed “best club practices” that we can encourage clubs to follow. Here are a few of those we identified that all private member owned clubs should be addressing: Cyber security: Has your board considered what information a “Bad Guy” may want from hacking into your club’s computer system? Bad Guys cannot steal your golf course or tennis courts not even your clubhouse or pool. They aren’t likely able to steal your cash as your bank has protections in place to keep this from happening. So, what would a “Bad Guy” want? During their presentation, a computer hacking forensic investigating organization reminded everyone that private club members are some of the most successful and wealthy individuals in our country. The speakers challenged the group asking: “Wouldn’t a “Bad Guy” love to gain access to a private club member’s personal information?” Member names, birthdates, physical and e-mail addresses, account numbers, and the list goes on and on and on, are stored and accessible on club computers.
policy is to establish a whistleblower hotline that keeps the reporting party anonymous, if so desired. Thus, best practices suggest that your private member owned club have a toll-free telephone number and/or website available to your employees and members to contact if going directly to the club’s management is not seen as a viable option. Planning for future capital needs: It can be argued that many club boards pay too much attention to F&B operations and not enough to planning for the club’s future capital needs. Studies are proving that changing F&B profit or loss percentages hardly moves a club’s financial needle. What does change the long-term financial viability of a private member owned club is the board’s attention to and adequately funding of future capital needs. Best practices must include a capital reserve study, which is an excellent management tool to facilitate the annual capital budget process. Parties of more than eight forms: Since an IRS Procedure was issued in 1971, all, both 501(c)(7) and Section 277 taxable private member owned clubs have been required to clearly identify whether a club transaction was
If you feel your club is “safe”, enlist a cyber security expert to try and access the a member’s information. You just might be surprised at how quickly and easily they acquire the potential to steal information from your club. Clubs must take the threat of cyber security breaches seriously. If you feel your club is “safe”, enlist a cyber security expert to try and access the a member’s information. You just might be surprised at how quickly and easily they acquire the potential to steal information from your club. CPAs and attorneys should be telling you about this threat annually until appropriate action is taken so watch for this in your CPA’s management letter comments. Whistleblower policy and tools: According to the IRS instructions for Form 990, a whistleblower policy encourages staff and volunteers to come forward with credible information regarding unethical or illegal practices or violations of club policies. Adopting a whistleblower policy is good governance for all organizations. Studies have found that one of the most effective tools of a whistleblower 46
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member or non-member related. Although not popular with members or club management, clubs must document their transactions following the rules provided in Revenue Procedure 71-17 (Parties of more than 8 rule). It is important for tax-exempt clubs to properly document non-member revenue as there is a 15 percent nonmember gross receipts limitation calculation. Taxable clubs must also properly identify its non-member revenue as only excess member related expenses have an unlimited carryforward. Best practices requires that these procedures are followed. Otherwise, clubs may find themselves at risk of owing more income tax than expected if examined by the IRS. BR
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SteVe GraVeS
MeMBeRship committee
Steve Graves is founder and president of Creative Golf Marketing. They were recognized as the 2016 Boardroom “Membership Marketing Firm of the Year” and have won this prestigious award 15 out of the 18 years it has been awarded. Steve can be reached at (800) 526-8794 or via email steve@creativegolfmarketing.com
Engaging the New Millennial Legacy an increasingly common question asked in boardrooms of today is, “Can my adult children enjoy the privileges of our private club membership?” The private club industry would be wise to reconsider its stance on what is the most standard policies regarding access. The Pew Research Center has concluded that for the first time in more than 130 years, “Americans 18-34 are more likely to live with their parents than any other living situation.” Among college educated Millennials, nearly 20 percent are living at home, a statistic that has been on an upward trend since 2000. Everyone wants to talk about the proclivities of the Millennial generation. One inclination is that “life with Mom and Dad” has become their most common choice of “domicile.” Should that life also include the trappings Mom and Dad enjoy outside of the home? Since 2010 the Affordable Care Act has required insurers to allow dependents to remain on their parents’ health
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care plan until they reach age 26. Clearly, this is one of the most popular and applauded elements of the ACA (actually something approved and encouraged from both sides of the aisle!). This “benefit/provision” of the Affordable Care Act has assisted many young people in this new world. Now how does that concept coordinate with the private club industry, and why should we care? There is no question that access to the club for family dependents has become a rather interesting subject. Most private club bylaws do not speak to this new phenomenon in a manner that would welcome or allow the children living at home to have access to the membership of their parents. Commonly, club bylaws allow access for dependent children under that age of 21, regardless of where they reside. Additionally, there is usually a provision for children living in the home, who are full time students or active duty military, to have access through the age of 23. The private club industry should take a page from the Affordable Care
Act and reconsider how the adult children of private club members are treated for club access. Intuitively, it makes sense to realize that if private clubs welcomed the children of private club members (up to the age of 26 regardless of whether they were still in school or in the military), who lived at home with the parents, that a number of very positive things could occur: These adult children would utilize the club and increase the monthly club expenditures of that family unit through food and beverage programs, cart fees and other paid club services. And children using private club amenities further into their adult lives will be more conditioned to the club lifestyle. According to the recent CMAA report, “Uncovering Generational Attitudes About Club Memberships”, 41 percent of Millennials already believe that a private club membership can help their professional and personal lives. This conditioning will make them more likely to aspire to becoming a member of a private club in the future and will give clubs an additional pipeline of leads for the future. We should embrace the children of private club members still living at home and show them that private clubs are welcoming. The “lifestyle” relationship of being a private club member is something that they should want to maintain throughout their successful adult careers. Perhaps it’s time for all private clubs to consider modifying their bylaws to reflect the “new world” in which we all live. BR
MiChael PhelPS Mike Phelps is co-founder of Pipeline, a digital branding and lead generation agency for lifestyle places. he can be reached via email: mike@pipeline-inc.com
MeMBeRship committee
Here’s the Best Member Referral Program
No bribes. No gimmicks. No schemes.
Of course, you want your members to recommend your club to their friends. But before you get all excited about rolling out a referral program that rewards members who send you their friends, you should know that these schemes can be counterproductive. Here’s why: A buddy told me that a friend of his joined a particular club and then said to him, “You really ought to get in on this.” My buddy took his friends advice and likewise paid the $50,000 initiation fee to join. My buddy would probably have recommended that club to everyone in his inner circle, but a disturbing betrayal made any such recommendation impossible. As he handed over the check for his initiation fee to the membership officer of the club, she said, “If you know anyone else who might want to join, just keep in mind that we’re giving three months free dues to whoever sends them in.” When my buddy realized that his friend had made over $3,000 by “recommending” the club to him, he felt a lot less good about the decision to join. And a lot less good about the friend. My buddy immediately knew that if he recommended the club to any of his friends, they would be made the same offer that he had just been made. There’s just no way that he was going to risk that. Let me say this plainly: If you try to bribe your members, they’ll think less of you. If you try to get your members to bribe their friends, they’ll think less of you. Friendship is built on trust. A friend makes a recommendation because they believe it will be good for their friend. They don’t do it to benefit themselves or the club they’re recommending. That wouldn’t be a friend at all. That would be a salesperson. Your members are not salespeople. So, how do private clubs effectively win referrals from their members without turning them into salespeople – without gimmicks and bribes? First, you must impress members with your performance. Focus your efforts on being consistently and truly remarkable. It’s the most effective thing you can do.
Secondly, get their attention by sending a distinct letter or email message. Stay away from club newsletters, flyers, posters, and statement inserts (gasp!). Third, tell members why you want them to refer their friends. Speak to their hearts, not their heads. Clubs are a unique platform for friendship, camaraderie and belonging – tap into that. Fourth, make it easy for members to act. Members are not inclined to stop by the membership office, they are not inclined to give you a call. Finally, let members know exactly what will happen after they provide a referral. Keep them updated on status if they wish, and do not persist in your attempts to follow up with member referrals. No bribes. No gimmicks. No schemes. The only reward your members want for recommending you to their friends is for you to make those friends happy. The results may surprise you. Even clubs with a seemingly “fully-tapped” referral base generate loads of new referrals, such as Palos Verdes Golf Club and the Jonathan Club. Both recently concluded member referral campaigns. We crafted an authentic message to create a spark with members, and fanned the flames using technology – automated emails, private micro-websites, and some other cool stuff behind the scenes to make the entire process simple, transparent and friction-free for members and the people they recommended. A simple email sparked 38 new referrals on behalf of PVGC and 86 new referrals on behalf of Jonathan Club in just a couple of months. Yes, they probably could have done even better if they had offered free dues, a voucher, or an incentive to the friend, not the member – essentially dropping the entry fee. Yes, they could have reduced some other barrier to join. But in the long run that makes members feel a lot less good about their club – which makes them a lot less likely to refer their friends. BR
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memBeRship committee
Ted Robinson
Robin Michael
Ted Robinson is a partner with Private Club Associates and can be reached at 1-(478) 741 7996 or via email: tcr@privateclubassociates.com
Robin Michael is the director of sales – FL Region, at Northstar Technologies and can be reached at robin.michael@globalnorthstar.com
How to Create the Profile of Your Most Likely “ if you don't know with whom you want to do business, you can't make contact” –linda Falkenstein All effective membership campaigns should be comprised of fully integrated strategies that use both old and new techniques, as outlined in Part I of this series (BoardRoom magazine, November/December 2016). These building blocks must be in place to assure long term success: 1. The club must have a brand and must know who it is and where it should be positioned in its market. 2. The club must know and regularly monitor its competition. 3. The club’s membership marketing component must operate the same way the best sales companies operate – using the same tools, platforms, and procedures. 4. The members’ value of their Member Experience must be exceptional – and must be measured regularly.
There are several tools you can use to gather this information and you really need to rely on hard data. A number of current club management software solutions capture member data and trends including age, location, family composition, spending habits, activity preferences, etc. A second method is to survey your members and include desired demographic questions at the beginning of the survey. (This also allows you to analyze the survey results by demographic gradations such as gender; age; length of membership; spending patterns; etc.) PCA recommends, for many reasons, conducting a survey annually to identify changes in member demographics (especially average age); activity patterns, use patterns, and perceptions of value. In addition some management systems capture guest demographic information which, in addition to defining your target, also identifies potential leads for the club. In
Tracking all membership inquiries contributes additional data to help you define your optimum prospective member profile. All membership inquiries should be entered into an effective and efficient club specific CRM system. Google Analytics (which is free) provides you with valuable data on who is visiting your club’s website. So how do you take advantage of digital marketing tools and techniques to enhance your club’s membership marketing results. How do we describe or define our “most likely prospects?” Describe and define are the key words that get us to the desired profile. Once you have your brand position – are you a golf club? Family club? Lifestyle club? Value club? You can drill down to the specific characteristics of your ‘target’ prospective member. To start, analyze your current member demographics. We focus on those members who have joined the club in the last three years as they most likely represent the highest probability potential members. You need to know the age range, socio-economic levels, family makeup and geographic pull. Your brand has already determined if the prospects are golf-focused, lifestyle-focused, or have other activity and facility preferences. 50
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many cases your member’s guest is someone who has similar interests and demographics as the member. Tracking all membership inquiries contributes additional data to help you define your optimum prospective member profile. All membership inquiries should be entered into an effective and efficient club specific CRM system. Google Analytics (which is free) provides you with valuable data on who is visiting your club’s website. As you gather this data you can build your profile of the prospective member (keeping in mind it is always in need of revision). Once you have your prospect defined you can then use multiple techniques including digital tools and platforms to identify those prospects who have the identified characteristics and who live or work within your club’s geographic market area. That will be the topic for our next article. BR
Rosie slocuM Rosie Slocum, MCMP is director of membership, BallenIsles Country Club, Palm Beach Gardens, FL. She can be reached at (561) 627.3372 or via email: rslocum@ballenisles.com | www.ballenisles.org, www.facebook.com/ballenislescountryclub | https://twitter.com/ballenislescc
memBeRship committee
Get Your Head Out of the Clouds! The idiom, “Get your head out of the clouds” takes on a whole new meaning today. as a youngster, your parents may have expressed this as a way of telling you that you’re not paying any attention to what’s going on around you – a day dreamer. In today’s world, using a phrase like “the cloud” is defined as a way of computing on the internet to deliver different services, storage and applications to your organizations computers and devices. It’s become the wave of the future. The internet has skyrocketed us into the 21st century. It doesn’t matter what type of business you have, if the internet hasn’t already become a major influence in attracting the right audience it should and if you’re not on board you’ll surely be left behind. There’s no question about it! “Today, you always know whether you are on the internet or on your PC’s hard drive. Tomorrow, you will not care and may not even know” – Bill Gates The days of keeping your club the “hidden little secret” are really over. Getting the word out that you exist and are open for business is essential in drawing people that fit into the unique lifestyle you offer. Being more aggressive keeps you ahead of the competition when using online tools and resources creating relevance to the outside world. You must understand what prospects are looking for and where they look for it. It’s a matter of choosing the proper marketing approach to expose your brand in an effective way. Many clubs are steeped in tradition and slow to adapt to modern marketing techniques. Some clubs are stuck in the complacent and dangerous mindset of the past. The attitude is that minimal traditional marketing efforts will still yield the desired results of selling memberships or real estate. In reality, it takes more than word-of-mouth communications or direct mail to keep up with the competition. Newer methods must be explored to maximize efforts and ROI. Embracing new strategies and technologies through social media marketing drives membership revenue through lifestyle promotion. A robust marketing plan contains a strategic mix of traditional and digital media, including direct marketing, print and broadcast outlets (local news affiliates, sports and
lifestyle programs), as well as a newly designed website with advanced search engine optimization (SEO), social media and an online presence. To select primary social media networks, it’s important to identify where your target audience is most likely to spend time online. Your target demographics will skew to a certain age segment that is considered in a resulting analysis. For example, a 55-plus age segment might lead to the creation of a Facebook page, YouTube Channel, Twitter, Google+ and a blog. Social media campaigns are major contributors in building brand awareness, driving traffic to your website and leads to conversions. Website traffic begins with social media engagement. As a marketing plan is refined more emphasis is placed on prospect engagement through targeted marketing campaigns via each social media effort with emphasis on Facebook due to its demographic reach. If your club has a real estate component, an engagement plan with local realtors provides a platform to build relationships and create effective programs to increase conversion rates. As market conditions change, working with realtors is crucial to be well informed of available housing, pricing changes and what prospects are saying about your club and community. Using a capital renovation plan is a great way to share with prospects and showcase future improvements. Don’t hide what you are doing, invest in an interactive professional video and brochure that gets people excited and show them through all marketing platforms! We live in exciting times! The cloud, internet, personal handheld devices, monster servers, grid computing, social media – who knew? The technology resources available are forever changing and provide a variety of platforms to reach people who are looking specifically for you. “Technology is the campfire around which we tell our stories.” – Laurie Anderson BR
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RobeRT a. seReci Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, Illinois. he can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org
on the fRontlines
The Perils of Membership Categories - Part I our club – Medinah country club – recently initiated a capital improvement project. We’ve targeted the reformatting of interior spaces, upgrading interior esthetics like fixtures, wall coverings and some redesign. We’ve also paid some attention outside the clubhouse by adding paddle tennis courts, remodeling one of our three golf courses in addition to expanding our pool and adding a new pool bar. As you can imagine getting the membership to agree on absorbing the cost of these projects was a major task, but we persevered. So now that we have financial commitment our next obstacle is overcoming the emotional second guessing that comes with spending $12 million. Trust me, questions start getting asked with very loud voices: Do we have enough activity and bodies to fill the newly developed amenities? Can we generate enough revenue to comfortably service the debt without assessing the members into oblivion?
and paddle facilitates. Sound thinking obviously, but beware of the possible consequences that come with expanded activity. • Multiple price points: While an $85,000 full membership initiation may be out of reach for some, a $65,000 may be appealing and we can limit their golfing to courses No.1 and No. 2. Or, how about a $30,000 sports membership that will cover the racquet and paddle courts along with the gun range? Wait … what if we take our social membership to $15,000 and let them use the paddle courts? The possibilities are endless as the pie gets cut into smaller and smaller pieces. Contained within the infinite wisdom is that with each price point comes more members. • Diverse membership: With more price points we may appeal to more demographics. Most people who golf have a different mindset than those who play racquet sports and these two groups come with different ages and economic
As a once famous club owner stated, “We are in the dues business.” He is right; dues are the life blood of our industry, but without strategic purpose being applied to the nature of your developing club culture, generating dues dollars may not be the most important thing contributing to your club’s survival. Without question, offering more membership categories will allow you to collect more dues dollars as you become more inclusionary. You know what knee jerk reaction is coming: “Hey, let’s create some new membership categories to increase our member count!” This sounds like an easy and simple solution, and it is. However, there are some very serious unintended consequences that come with this decision. In this series, I will be explaining what form these consequences will take. But before I expose the pitfalls, let’s talk about the benefits of making the move on more membership categories. • Increased utilization: In the case of our club our project included adding a never before amenity of paddle tennis courts. Most of our members have never played paddle tennis before and some have dabbled within this regional sport. The line of thinking is we need some dedicated paddle tennis players to fill up these courts so let’s start an athletic membership category to cover both our racquet 52
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conditions. There is no question that with more membership categories you become more diverse and marketable to the masses: “A little something for everyone.” As a once famous club owner stated, “We are in the dues business.” He is right; dues are the life blood of our industry, but without strategic purpose being applied to the nature of your developing club culture, generating dues dollars may not be the most important thing contributing to your club’s survival. Without question, offering more membership categories will allow you to collect more dues dollars as you become more inclusionary. In part II, we’ll look at how history affects category development and how developing new categories may negatively change the way your members view their club forever. BR
golf Committee
John Easterbrook Jr. Named PGA’s Chief Membership Officer “as the grandson of a PGa Professional and son of a college football coach, golf and sports have been a big part of my life forever,” said John easterbrook Jr. “i am humbled to be selected to serve the 28,000 men and women of the PGa of america.” Inspiring words from Easterbrook, named recently as the first Chief Membership Officer of the PGA of America. Easterbrook joins the PGA from his position as executive vice president and chief operating office at Troon where he was instrumental in the growth of the company’s portfolio and was responsible for the day-to-day operation of a vast global business that includes more than 15,000 associates located in 275 courses across 36 states in the U.S. and 31 countries worldwide. He’ll he based at PGA headquarters in Palm Beach Gardens, Fl., reporting to PGA CEO Pete Bevacqua. In the newly created Chief Membership Officer role, Easterbrook will oversee the core PGA member-focused areas of the organization, including education, employment, member services and section business operations. “We created this position to help us better serve our
Members, and ultimately help grow the game,” said Bevacqua. “John is an incredible talent with proven experience at all levels of our Association – from traditional golf professional to executive business leadership. As a PGA Member, John brings a critically important perspective to the PGA of America’s management team, and I’m confident this will translate into greater value for our Members.” “John’s two decades of global leadership experience at Troon, along with his collaborative approach to business management, make him the right choice to help the PGA of America fulfill our mission of serving our Members, growing the game and providing value to the broader golf industry. We are thrilled that John is joining the PGA team.” Easterbrook says he’s “always understood the importance of PGA leadership at golf facilities around the world. The CMO position will allow me to truly follow my passion to create enhanced career opportunities for great people. I am looking forward to joining the PGA team and leading the effort to promote and develop PGA Professionals around the world.” BR
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Melissa loW
legislative Committee
Melissa Low is the senior director, communications & advocacy, for the Club Managers Association of America. For the latest information on these and other issues affecting the club industry, please visit CMAA’s Legislative Report blog at www.cmaa.org/legislative.aspx.
Legislative and Regulatory Update it’s a new session of congress and a new Presidential administration. What does that mean for the major issues affecting the club industry? here’s a brief update.
Regulations under scrutiny: With new players in office and differing agendas, many of the initiatives of the Obama Administration will undergo scrutiny over the coming year. These federal issues of importance to the club industry will include the Affordable Care Act, the Department of Labor’s revised overtime regulations and the Waters of the US rule. Work has already begun to repeal the Affordable Care Act in Congress through budget reconciliation, which is a method that allows fast-track consideration without the threat of filibuster. The wildcard to this issue is that Congressional leadership has been unable to agree on what the replacement will be. Expect this process to be lengthy and complicated. While Congressional leadership has indicated their goal is to have legislation on the President’s desk for his signature by February, the reconciliation process could be longer.
as the Supreme Court has just agreed to address jurisdiction issues between the district and appellate court levels. Congress can vote to repeal regulations, which would have immediate effect. Without that action, the Administration is bound by the rulemaking process which takes time so it is not an immediate end to a regulation. The status of H-2B visas: On Friday, December 9, 2016, Congress passed its second continuing resolution of the year, extending short-term government funding through April 28, 2017. Unfortunately, for clubs who currently use H-2B visa workers, Congress did not include what is known as the “returning worker” provision. The provision was last enacted as part of the FY2016 budget deal in December 2015. This provision would continue to have exempted H-2B workers identified as “returning workers” from the annual H-2B cap. A “returning worker” is defined as an H-2B worker who was previously counted against the annual cap during the previous three fiscal years. Currently, the cap set by Congress is 66,000 per fiscal year, with 33,000 to be
On Friday, December 9, 2016, Congress passed its second continuing resolution of the year, extending short-term government funding through April 28, 2017. Unfortunately, for clubs who currently use H-2B visa workers, Congress did not include what is known as the “returning worker” provision. The provision was last enacted as part of the FY2016 budget deal in December 2015. A temporary nationwide injunction remains in effect for the overtime regulation, based on the November action of the US District Court. The nomination of Andrew Puzder, a restaurant industry executive, has illustrated the Trump Administration’s interest in a more business-friendly era of regulation from the Department of Labor. Apart from the overtime rules, it is expected that the administration will thoroughly review much of the recently enacted DOL and OSHA regulations recordkeeping, the Fiduciary Rule and others. The Waters of the US rule is another measure which remains on a nationwide injunction, enacted by the US Circuit of Appeals Sixth Circuit in October 2015. Congress has already begun working to address this rule. On January 12, Senators Deb Fischer(R-NE) and Joni Ernst (R-IA) introduced S.Res.12 which calls for the withdrawal of the rule. The wildcard is the continuing battle in the courts 54
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allocated for employment beginning in the first half of the fiscal year (October 1 - March 31) and 33,000 to be allocated for employment beginning in the second half (April 1 - September 30). Over the course of 2016, the program experienced significant processing delays, again hampering the businesses that rely on the program. In previous years, when the returning worker provision was not in effect, the annual cap was routinely met, which prevented further applications being approved and leaving many seasonal businesses, like clubs, without sufficient workforces. As of January 10, the H-2B visa cap for the first half of the 2017 fiscal year had already been reached. This announcement does not impact any H-2B worker petitions received by the USCIS before January 10 or applications employees with a start date of April 1, 2017, or later are still being accepted. Stay tuned for the latest information! BR
addison cRaiG Addison Craig, a Millennial, is the owner of ADDGOLF LLC, a golf instruction business. Addison works as a golf instructor at the Jim McLean Golf School at Trump National Doral, Miami, FL and works as a golf professional at The Bridge Golf Club at Bridgehampton, NY. he can be reached via email: addison.c.craig@gmail.com
memBeRship committee
Tips to Win Over Millennials i’m a Millennial, one of those young americans born between 1982 and 2000 who have been in the news lately. By the numbers, we’re 83.1 million, a generation larger than our Baby Boomer parents. We’re also very different than our parents, especially when it comes to interests in sports. Many Millennials aren’t out there swinging a golf club and that worries clubs’ boards and managers. Recently, the number of golfers dropped from 24.7 to 24.1 million, according to the National Golf Foundation. However, it’s also reported that there are 12 million Millennial non-golfers interested in playing the game. Sounds like a great opportunity for clubs! So how can clubs win over Millennial and introduce new players to this great game? Here are some great tips: 1. Offer clinics and lessons targeted at Millennials. Using a variety of games, music, food and drink during clinics, has been very successful in targeting Millennials, especially those who are new to the game. Offer specials such as reduced cost food and drinks. Create a great entertainment experience – think of TopGolf’s success. 2. Use social media smartly by developing a marketing plan. Highlight the game’s most exciting players and put pictures of Millennials on your website. Consider the fact that Millennial golfers spend $5 billion a year on golf. It’s also worth it to get testimonials from Millennials and spread it online through social media and your website. 3. Make a commitment to attract Millennials by starting a task team responsible for gathering information and
developing strategies to help increase the awareness about golf, the benefits of playing and how much fun it is! 4. Show that golf is inclusive. In this generation, about 44 percent are part of an ethnic group or minority race, a change in just the last decade. The generation right behind them is even more diverse. It will be the first majority-minority group in the country. 5. Millennials like feedback. Say you appreciate them coming to play the game. Put a feedback system in place to gather information from them that will drive participation, as well as give you insight into what they want.
to the clubs to decide whether to change some policies to attract Millennials. But if it means more young people joining those who already love the game, it may be worth it. 7. Take inventory of your equipment and facility to be sure that you are maximizing the use of technology. You want them to believe your club is on top of the latest and greatest technology. 8. At times, people make negative assumptions about Millennials. Staff should be trained to appreciate all ages to ensure your brand is not tarnished.
Millennials will assess their overall experience while also considering if they will return. By taking the extra initiative to reach out to them to solicit their feedback, you can build loyalty and repeat golfers. 6. Research suggests that Millennials don’t like some of the rules of golf, including the strict dress code. It’s up
9. Prepare a list of benefits of the game of golf, highlighting how it builds skills, the benefits in business and how it helps in building your network. If it means more young people joining those who already love the game, I suspect implementing these suggestions will be worth it! BR MARCh/APRIL 2017 | BOARDROOM
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BoardRoom magazine Recognizes the Private Club Presidents of the Year By Heather Arias de Cordoba, Associate Editor, BoardRoom magazine BoardRoom magazine annually recognizes the world’s top private club presidents, captains and chairs as Private Club Presidents of the Year, for their outstanding work, their understanding of the industry, and role and responsibilities of the club’s board of directors. In this continuing series, BoardRoom introduces three of the top 22 presidents for 2016. Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world. These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working, effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work. Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan. A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members. Congratulations to these outstanding private club board presidents.
Three club president profiles on page 58 and 59
Sponsored by
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linda adamany, pResident | Kensington golf & CountRy CluB | naples, fl
linda adaMany, PResidenT
david KRzyWonos, GM
“President’s Adamany’s ability to communicate with the board, members and staff set the club up for success,” said David Krzywonos, Kensington Golf & Country Club’s general manager. And for selection as one of BoardRoom magazine’s top presidents for 2016. President Linda Adamany began her two-year tenure as president with the end in mind. her vision was to put robust processes and people in place that would enable the club to continuously improve. This helped the club achieve the desired results. By clearly defining the roles of the board, the committees and the management team as well as being transparent in dealings with the membership added credibility and trust. “Linda Adamany listens and her timely responses encouraged open and honest dialog. To sum it up, she is a great communicator and is passionate for Kensington and dedicated to the club’s success,” Krzywonos added. “She directed the refresh of our strategic plan, ensured the long-term capital reserve plan identifying future capital expenditure requirements was up-
dated and adequately funded, supported work now underway to identify additional casual dining and amenity options to remain competitive. As president, she initiated the process to recruit the leadership needed to ensure our success now and in the future. I personally was the beneficiary of that – she and the board hired me as the general manager a year and a half ago.” Kensington’s board believes in collaborative governance, and understands its job is to provide direction and support to general manager to successfully achieve its goals. “There is a rigorous process in place and I’m confident good governance has helped the club be as successful and financially sound as it is. “President Adamany would be the first to say she didn’t achieve all this on her own. All members who volunteer their time and talents as board and committee members have been instrumental to her success. No one can be a great leader without a great team of people supporting their vision and making it happen, and Kensington is very fortunate to have so many great members who want to be involved,” the GM added. “It’s been a privilege to be president of Kensington Golf & Country Club for the last two years, and a board member for six years,” expressed Adamany. “We have a wonderful, financially sound club with an active and supportive membership who enjoy each other and love what we provide. “We are big enough to offer great facilities and services, but small enough to know you personally. Dave Krzywonos, our general manager, is a wonderful leader who strives to exceed member expectations all the time, and often succeeds.” Adamany has over 45 years of business experience as well as current nonexecutive roles on a variety of boards with both U.S. and UK publicly listed companies. She resides in Naples, Florida and Chagrin Falls, Ohio. In her spare time, she enjoys theatre, music, literature and art. She supports a number of charities, especially those that focus on serving the homeless, abused women and children, and protection and care of domestic animals. BR
Kathleen BoyCe, pResident | Wellesley CountRy CluB | Wellesley hills, ma
KaThleen boyce, PResidenT
MaRTy Ryan, GM
“The fruits of her amazing energy and work continue to enhance the club experience for all our members.” That’s how fellow members of the Wellesley Country Club describe the efforts of Kathleen (Kathy) Boyce, one of BoardRoom’s top presidents for 2016. Boyce has been on the club’s board for 17 years, and is now in her second year as president. During her board tenure, Boyce instituted a 10-year capital expenditure plan to set priorities for capital spending. Adherence to this plan has resulted in the construction of numerous new club facilities without any member assessments. She engaged a leading country club accounting firm as the club’s auditors, which has proven to be invaluable in providing oversight and benchmarking data, and the presi58
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dent leveraged her financial expertise and business connections to restructure the club’s debt on more favorable terms. Most recently Kathy has been working with the club’s long range planning committee to conduct a membership satisfaction survey. She recognized that active and vibrant clubs need to have an organized summer program for children and then worked hard to design and organize one. WCC hosted the 2016 US Senior Women’s Amateur Championship, chaired by President Boyce. This required effective oversight of 25 host committees, 400 volunteers and a close working relationship with USGA staff. The event raised the bar for future host sites. “President Boyce has truly been instrumental and passionate in positioning our club with some of the finest facilities and as one of the most desired clubs in our area,” explained general manager Marty Ryan. “While maintaining a keen eye on operations, Mrs. Boyce has established an excellent working relationship with the management and staff. her ‘View on the horizon’ future planning for the health and prosperity of the club will serve us very well for years to come. She is indeed a pleasure to work with.” Kathy is a CPA and currently the CFO/COO at the Massachusetts Dental Society. She and her husband joined the club in 1990 and, together with their four children, have enjoyed and participated in many of the club’s activities over the years. “It is an honor and a privilege to serve as president of a club that has meant so much to me and my family,” President Boyce intoned. “This past year we’ve all seen an unusual thing,” opined a former club president. “In Kathy, we have seen a complete chief executive and a real leader in action.” All good reasons for the selection of Kathy Boyce as one of BoardRoom’s top president for 2016. BR
Ken donovan, pResident | fiddleR’s elBoW CountRy CluB | BedminsteR, nJ
Ken donovan, PResidenT
ToM huRley, GM
“Ken Donovan believes strongly in planning and executing a strategy that is nimble and flexible,“ explained Tom hurley general manager. And it’s this strategy and his dedication that earned President Donovan a spot as one of BoardRoom’s top presidents for 2016. Governance is different at Fiddler’s Elbow Country Club since it is a forprofit club, but the member experience at Fiddler’s Elbow Country Club is the highest priority. In fact, Donovan talked about “member engagement” way before it was an industry buzz word. “Ken Donovan, his brother Keith and sister Maryellen are the driving forces behind the strategy to wow our members and guests,” said hurley. “A tremendous investment, both financial and in human capital and resources has led to dramatic improvements. “These include new indoor and outdoor golf practice facilities, golf course renovations, new golf and tennis pro shops, new tennis and paddle
tennis courts, a new fitness facility with staff, clubhouse renovations and new dining options. In short, every square inch of the facility has been renovated in the past five years, and many of the holes on the golf courses have received facelifts, if not outright redesigns,” the GM added. “Ken, Keith and Maryellen Donovan are among the finest people I have ever come across. They’re visible at Fiddler’s Elbow and accessible daily to the members and the staff,” explained Dr. Nick Molinaro, a club member. “They’ve set the tone for the club that is so much fun and unpretentious. It’s upscale without the attitude. And there is a vibe of caring and sharing, like we’re all in this together.” Every decision is made with the members and guests in mind. Everything at Fiddler’s Elbow is top shelf and first class. The staff similarly has been empowered through an initiative called Fiddler’s Pride. The directive is to do whatever is in a staff member’s ability to make member interactions special, memorable, or resolve any issues on the spot. This has resulted in tremendous positive response from the members. “It’s impossible to manage a club the size of Fiddler’s Elbow without dedicated, loyal, and committed staff,” explained President Donovan. “Our management philosophy is to empower managers to run their department like it’s their business, support them continually, and to push them to accomplish what they think is out of reach.” As a family club, Fiddler’s Elbow is thriving with the most unique aquatics facility in the state, a calendar loaded with family activities, and dining experiences on par with the best restaurants in Manhattan. “Mr. Donovan leads with an incredible ability to find an appropriate balance between when to set direction and when to get his hands dirty. he is a consummate gentleman with true empathy for members and staff alike, all of whom he treats as family,” hurley concluded. BR
John fanBuRg, pResident | mountain Ridge CountRy CluB | West CaldWell, nJ
John FanbuRG, PResidenT
JiM coRcoRan, GM
A significant growth in membership, selection of a new general manager, a strategic planning initiative and four years free of operating assessment mark the tenure of John Fanburg’s presidency. President Fanburg, who has been immersed in the club’s leadership for more than 20 years, served as president from 2012 through 2016. During his time as president from 2012-16, John Fanburg oversaw significant growth of membership, served as chair of the GM search committee (the GM of 20 years retired) instituted our strategic planning initiative and still managed to deliver four years free of operating assessments! President Fanburg’s belief that the leadership must be responsive to the ever-changing needs of the MRCC membership has resulted in enhanced programming, fewer LOA’s/resignations and policy changes
(strengthening of the no cell phone stance) designed to enhance member’s enjoyment of the club. “John Fanburg has been instrumental in launching our strategic planning process but with the clear recognition and respect for the different roles the board of governors and the professional staff play,” explained general manager Jim Corcoran. “Additionally, he has supported my recommendation to adopt ‘Guidelines of Club Administration’ to ensure we maintain the continuity of governance that is so critical to the long-term health of our organization. “President Fanburg is thoughtful, approachable, possesses the ability and sensibility to see the bigger picture and he has been able to articulate his vision for our club,” GM Corcoran added. And he receives high praise from club members: “You have been an outstanding president. I did not always agree with your position, but each time you listened, thought through my comments, and when necessary, circulated them to people of interest. You were patient and caring in our dealings, and I believe you eventually did what you thought was the right thing,” expressed one club member. “It must be a little bitter sweet to hand the MRCC reins over to another capable John, but we want to congratulate you on a job well done during your presidency and we appreciate all your efforts to maintain the Mountain Ridge traditions while preparing us for the challenges ahead,” commented another member. President Fanburg grew up in Mountain Ridge and has been part of the MRCC community his entire life. he and his family have been members of Mountain Ridge Country Club for 33 years. John and his wife, Toby have two grown sons. John is the managing member of Brach Eichler, LLC and is the chair of health law. he is consistently recognized by his peers as among The Best Lawyers in America and as a New Jersey Super Lawyer. BR MARCh/APRIL 2017 | BOARDROOM
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lisa caRRoll
cheF lenaRd Rubin
house committee
Set Your New (or Current) Chef Up for Success Whether your club offers golf, tennis, fitness, and or yachting, one thing is certain: all members eat. Which means the dining experience at clubs is crucial – from the fine dining room to the half-way house. And successful clubs insist that every amenity they offer has the same level of quality. So, if you’ve hired a new executive chef, there are certain steps that will help make that transition and your new culinary program more successful. Recently several executive chefs who had successfully made the transition from the hotel and restaurant industry to private clubs passed along their recommendations on making that transition successful. Here’s a thoughtful and detailed list from Chef Lenard Rubin at The Country Club at DC Ranch in Scottsdale, AZ that reflects his recommendations after making a successful transition in 2013. This information is useful for chefs moving from restaurants and hotels into the private club industry and for chefs embarking on an adventure at a new club. In fact, I think this list contains recommendations that all chefs can benefit from – whether you are new to a club or not. Read on. 1. Go in without an ego. You need to be there for the members (and your team) and not merely for yourself. 2. Ask the GM, club manager or director of F&B for complaint, suggestion and criticism letters and emails from the members to understand the club’s current needs and priorities. If the club has conducted a recent F&B survey, ask for those results. Compile a list of the members that are frequent complainers, criticizers, and “suggesters” and find a way to make them your biggest fans. You can accomplish this by personally following up on their concerns and making them feel like they are the most important members at the club. 3. Get to know your members, and what they like and don’t like. 4. If you thrive on preparing modernist, contemporary foods, be ready to put all of that aside, along with your ego, until you can win over your members with classical and recognizable foods. Once you have earned their trust (and their palates) you can slowly “educate” them by infusing some newer preparations into your specials and eventually onto the regular menus. 60
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5. Don’t completely overhaul the menus at first (unless they are a complete disaster and the members hate them). Be aware that there are many items that are sacred favorites; 86ing too many, if any, will be certain demise for a chef, even if you feel strongly about changing them. Get feedback from the GM and staff to navigate through the “landmines” of untouchable food on the menu. Once you earn their trust (see No. 4 above) you may be able to make more significant changes in the future. 6. Get to know all the members that have food allergies, sensitivities, etc. Find out and document what they can and cannot eat as soon as possible. Members with allergies and restricted diets will be blown away that you remember and cater to them without them having to alert someone every time they dine. It can be difficult for them to go to most restaurants and receive adequate accommodations for their diets and not feel intimidated to ask for what they need. Your club should be their safe haven dining destination. 7. Don’t treat kids as an afterthought. If you treat the children as you would the adults, or pay even more attention to them, then you have won over even more members. 8. Don’t do ethnic dishes unless you can execute them flawlessly. Most country club members are well traveled and they know what things are supposed to taste and look like. If you want to do an ethnic dish, do your research. Ask staff or members who may be more familiar with the culture to make recommendations and conduct a taste test with them. 9. Be visible, approachable, and personable to the members. Treat them like family (but not too personal) and they will most likely treat you the same way. Don’t go out in the dining room and be visible if it is super busy because, if their food is taking too long, they will wonder why you aren’t in the kitchen cooking their food faster. Perception is everything. 10. Keep things fresh. It’s not like a hotel or independent restaurant where the customer base is transient with a few regular guests. Members frequently dine three or more
legal Committee By RoB haRRis
Court Orders Trump National to Return Former Members’ Deposits by now, many of you have heard that Trump national Golf club Jupiter has been found liable in a class action lawsuit and ordered to pay more than $5,700,000 in damages and interest. The court’s opinion makes for interesting reading and is attached here.
Before Trump purchased the club from the Ritz-Carlton, the plaintiffs were on a waiting list to resign their memberships and obtain return of their initiative fees. The operative rules permitted resignations to occur based on new members entering. While waiting, those on the list were considered members, required to pay dues, and permitted access to the golf course. Following its acquisition, the Trump organization unilaterally changed things. As the court explained, “After closing on its purchase of the Club, Defendant held a town-hallstyle meeting on December 14, 2012, to discuss amendments to Club Documents and changes to aspects of operation of the Club. At all times material to this lawsuit, Donald J. Trump held the top position of authority at Defendant’s company. After the December 14, 2012 meeting, under Mr. Trump’s authority, Defendant disseminated a letter to all Club members including those on the resignation waiting list. The letter was dated December 17, 2012, and bore the signature of Donald J. Trump, as owner of the Club. “The letter communicated to Plaintiffs and the Class Members three options that they must choose by December 31, 2012: opt-in; opt-out; or remain on the resignation waiting list, but pay no Club dues and have no Club access. “Those members who opted in were afforded a reduction in Club dues for three years and reciprocity with the other times a week at the club and often more than that (especially if you can engage them with the food experience). 11. Listen and solicit feedback from the locker room attendants, valet parkers, spa personnel, etc. They hear more member feedback directly than you will. Members may tell them things about their dining experiences that they want to get back to the F&B operation without having to give the feedback directly. 12. Make sure that every birthday party, wedding, shower, member event and holiday gala is not just another event. To the members their event is the only event that matters. Make it special for them, even if it’s the fourth or 20th one that you have done that month.
Trump-owned clubs, in exchange for forfeiting their rights to refunds. Those members who opted out kept their rights to refunds and Club access, but could not be on the resignation waiting list and would incur an increase in Club dues with no cap on the amount of Club dues. Plaintiffs and the Class Members fell into the third category communicated by the December 17, 2012 letter. Because they chose to remain on the resignation waiting list, Plaintiffs and the Class Members were denied permission to use the Club in exchange for a release of the obligation to pay dues. In the letter, Mr. Trump, on behalf of Defendant, stated to Plaintiffs and the Class Members “as the owner of the club, I do not want them to utilize the club nor do I want their dues. In other words…if you choose to remain on the resignation list, you’re out.” Defendant’s general manager testified that it was clear from the letter that members remaining on the resignation waiting list were out of the Club after December 31, 2012. Defendant’s director of memberships likewise testified that the message expressed to Plaintiffs and the Class Members in Defendant’s letter was clear: that if they remained on the resignation waiting list, as of December 31, 2012, they would no longer be Club members and would no longer have access to the Club.” The court concluded that Trump’s actions constituted a recall of the plaintiffs’ memberships, entitling them to prompt return of their initiation fees. Having been deprived of the opportunity to use the golf course while waiting for their resignations to take effect, they were entitled to return of their money. BR
Share this list with your executive chef and I’ll follow up with even more transitioning recommendations in the future. Bon appétit! BR 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. The company has offices in Scottsdale, Jupiter, Atlanta, Denver, Cleveland, and Naples. Lisa can be contacted at (561) 596-1123 and at lisa@kkandw.com. Chef Lenard Rubin, CEC is the executive chef at The Country Club at DC Ranch. He is also the current president of the ACF Chef’s Association of Arizona and was awarded the 2016 American Culinary Federation Western Region Chef of the Year. Chef Rubin can be reached at lrubin@ccdcranch.com. MARCh/APRIL 2017 | BOARDROOM
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heaTheR aRias de coRdoba
distinguished ideas
heather Arias de Cordoba is the associate editor of BoardRoom magazine. If you have an distinguished idea or a story suggestion, please send heather an email to: heather@boardroommag.com or call (949) 365-6966.
Diablo Country Club Finds Long-Term Solution To Water Problem Up until the recent barrage of rain and snowstorms, most of California was in a drought. Thanks to the most recent precipitation, according the United States Drought Monitor, the entire northern part of the state (from San Francisco to the Oregon border) is drought free, and a little more than 50 percent of the state is still under drought conditions, ranging from moderate to extreme. Much improved from a year ago when more than 95 percent of California fell under drought designations. Water scarcity is nothing new to golf clubs. Diablo Country Club, a BoardRoom Distinguished Club in Diablo, CA, has, like
pictuRed top to Bottom: Frank Cordeiro, GM/COO, hole #4 Outlook, Diablo Country Club clubhouse
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many golf clubs across the country, kept a keen eye on obstacles and solutions when it comes to irrigating the golf course. “Diablo Country Club first began exploring the idea of finding a longterm water solution in 2009. Although the recent drought – length and severity– wasn’t anticipated at the time, the club recognized its responsibility on behalf of the membership to provide a sustainable and reliable source of irrigation,” explained Frank Cordeiro, the club’s general manger and COO. “We were facing severe restrictions in 2014/2015 and didn’t control our water supply. In addition to drought conditions, our dependence on a public utility was subject to government regulation and public policy direction.” So, after some research, and active participation from the board, the club set their sights on a satellite water treatment facility – a sustainable, reliable source of water for irrigating the course. “The project remains in the planning stages and the cost of the project is unknown at this time, but we are exploring a variety of options and alternatives,” said Cordeiro. “The idea behind the treatment facility is that once built, the club will shift from buying water to producing water. Shifting us from uncertainty and dependence to certainty and independence, providing long-term sustainability and benefits to the members and the community,” explained Cordeiro. Although the challenges are ongoing, the technology has been in existence for many years. The model for Diablo Country Club is somewhat unique for the region, and doesn’t currently exist to facilitate the necessary coordination, ownership and operation of a facility built and financed by the club (a private entity), owned and operated by a public entity (sanitary district) and with the cooperation of a few other public entities such as the local water district. So far, the membership remains very supportive, but ultimately the project will require a member vote and approval of the financing. “Assuming all goes as planned, the facility would likely be built on the course and designed to match the existing architecture and blend with the surroundings,” said Cordeiro. “Although the project would likely help us control our costs, the cost to build, finance and operate the plant is significant. Ultimately, the driving force behind the initiative is the reliability and sustainability into the future. In other words, it’s the right thing to do.” Still in the planning phase, and assuming it’s the best alternative and the project is approved, Diablo Country Club hopes to have the water treatment plant permits and plans completed by 2019 or sooner. bR
heaTheR aRias de coRdoba heather Arias de Cordoba is the associate editor of BoardRoom magazine. If you have an distinguished idea or a story suggestion, please send heather an email to: heather@boardroommag.com or call (949) 365-6966.
distinguished ideas
Wyndemere Country Club Bring Wellness To Staff Members employees with Wyndemere country club, a boardRoom distinguished club, in naples, Fl, are reaping the benefits of the club’s wellness initiatives.
“I eat healthy, exercise regularly, am very energetic, and I want everyone else around me to feel good,” exclaimed Jimmy Lynn, Wyndemere Country Club’s general manager. “And I encourage my staff to live a healthy lifestyle as well.” Wyndemere is one of America’s Healthiest Clubs, the first certified Blue Zone workplace private club, the first certified Blue Zone country club in the world, and most recently a founding member of the Wellness Project, a club industry initiative spearheaded by America’s Healthiest Clubs. “The Blue Zones Project is a country-wide initiative to help people live longer with a higher quality of life…a concept used to identify a demographic and/or geographic area of the world where people live measurably longer lives. Blue Zones is an initiative in communities nationwide that make healthy choices easier through permanent changes to environment, policy and social networks,” Lynn added. There are currently seven designated Blue Zones in the United States and Wyndemere was the first private club to take the time to get involved in the community-wide initiative and get certified. “I have been involved with the Blue Zones Project from the inception and have a seat on the steering committee,” Lynn explained. “Becoming the first Blue Zones certified worksite in the county was a very intense process, which ultimately needed approval by the Blue Zones’ national leaders. “The process takes about six months and includes healthy meal options for employees, Blue Zones parking areas farthest away from the club, club grown culinary herb gardens, employee health fairs, employee lounge areas for them to downshift, stand up workstations, stand up meetings, and weight loss programs.” The club also purchased the entire staff Fitbits and management holds weekly challenges. There are measured walking areas and staff members are invited to participate in a softball league. Wyndemere is recognized as a great place to work and the Blue Zones workplace certification has helped with staff recruitment and retention. “It’s really all about providing staff members with healthy options should they want to make the choice,” Lynn added. “People ask me what the ROI is for the program, and I tell them it’s hard to measure, but we do it because it’s the right thing to do! I mean, who doesn’t
want to live longer, and better,” Lynn stated. According to the Blue Zones Project, the majority of us spend our day at work – so having healthy choices at our workplace is key. Blue Zones Project offers solutions for worksites to inspire employees to be happier and more productive at work and at home. A healthier employee costs less, too. When workers feel better and are more connected to their colleagues, they miss less work, make greater contributions, and have lower healthcare costs. bR
pictuRed clockwise fRom top Right: Jimmy Lynn, GM, Employee stand up desk, Employee FitBits, Employee lounge area, Employee Blue Zones Parking
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Ronald F. cichy Dr. Cichy, O.M. is a professor at his alma mater, The School of hospitality Business at Michigan State University, since 1988.
exeCutive committee
What does REAL Leadership mean to YOU? Joe hart, president and ceo of dale carnegie recently shared his insights about Real leadership to a group of industry executives. R stands for Reliability, authenticity, and doing what they say they will do. E is Empathy. Listen and communicate with the other: “You are important.” A means Aspirational. Aspire to connect and care. Be more meaningful and significant and invite the others to do so, too. L is Learning. Each person I meet is one who does something better and/or knows something different than I do. Leaders Listen and Learn with humility. Later, I took the REAL concept to a senior class, all Millennials, in The School of Hospitality Business, Michigan State University and asked them what the acronym meant to them. Here are the most frequent responses from these emerging leaders and an interesting comparison.
doing with others. Attitude is everything. Positive Attitude defines the direction. Authentic leaders are synced in Actions and words; they are their Authentic selves. L means Listen. Listen to the people, what they say and what they mean. Listen to needs, wants, expectations, and B1G dreams of others. Ask questions and Listen. People feel valued when they are heard and know they are being understood. Listen and Learn from others what they know more about than you know. Encourage everyone’s voice and Listen. Usually when an aspiring leader decides to develop their own leadership attitude, skills, and knowledge (ASK), the person studies the leadership qualities of established leaders that they admire and takes advice on leadership development from mentors. In contrast, this study looks at the emerging leaders, all Millennials, whose leadership journey is being defined and is evolving right before your very eyes. In many ways, this
This study looks at the emerging leaders, all Millennials, whose leadership journey is being defined and is evolving right before your very eyes. In many ways, this study is a peek into the future, based on the values that the emerging leaders are articulating today. These values will drive their actions. The R stands for Relationships and Recognition, a tie for the largest number of responses. Leaders build Relationships, as colleagues, family, and friends into different networks. Relationships are based on Respect for each other in the networks. Recognize individuals and teams. And Remind them that they are valuable and valued. Recognize those who make SMARTER goals come to life. E is Energetic as the top pick. Energetic in maintaining personal health. Show a passion to others about work. Be Excited and show it because you love what you are doing. Energetic leaders create a great vibe for others. Their positive Energy vibe inspires self and others. A is a three-way tie: Appreciation, Attitude, and Authentic. Leaders know when and how to give Appreciation to others, because all of us could use a little more Appreciation each moment. People who are Appreciated are more willing to work diligently; they care more about the work they are 64
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study is a peek into the future, based on the values that the emerging leaders are articulating today. These values will drive their actions. REAL Leadership, as defined by The School of Hospitality Business senior students in HB 451 – Your Emerging Leadership Journey, Fall 2016 Semester R = Relationship, Recognition, Responsive, Reasonable, Responsibility, Respectful, Representative, and Readiness E = Energetic, Engaging, Empathy, Excitement, and Execute A = Appreciation, Attitude, Authentic, Analyze, Action, Admired, and Accountable L = Listen, Loyalty, Laughing, Long-term, Lead by example, Level-headed, and Love What does REAL Leadership mean to You? ASK (Attitude, Skills, and Knowledge) yourself. BR
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Michelle TanzeR
legal committee
Michelle Tanzer, Esq. serves on the National Club Association board of directors and is legal counsel to the Club Spa & Fitness Association. Ms. Tanzer is chair of the Residential, Resort and Club section at GrayRobinson, P.A. and can be reached at (561) 866-5700 or via email: Michelle.Tanzer@Gray-Robinson.com.
Spa and Fitness Waivers
How to Maximize Your Protection The benefits of a healthy exercise regime cannot be overstated. however, there are certain risks of personal injury that accompany spa and fitness activities, especially those that include high intensity exercises. Many clubs use a waiver and release form signed by the member in an effort to protect themselves from liability stemming from any possible injury. Often these waivers are effective in protecting the club, but some cases have proven that a waiver can be ineffective if it does not include critical elements or if proper procedures are not diligently followed. The first critical element in an effective waiver is known as the exculpatory clause. An exculpatory clause is the clause in a waiver in which the member releases the club from liability in connection with the spa and fitness activities. Without this clause, the club could be found liable for a member’s injuries if a court determines that the club was otherwise legally responsible for the safety of the member. Exculpatory clauses may be extended to exempt a club from liability for its own negligent acts or omissions, but generally
It is used to shift the costs associated with any injury away from the club. Similar to the exculpatory clause, most courts will not extend a general indemnity to the negligence of the club, unless the indemnity clause specifically states that the indemnity operates regardless of whether the injury is caused by the sole or partial negligence of club. The scope of the indemnity protection should be extended to the club’s released parties as well. The third critical waiver element is the conspicuous nature of the text. For example, is the text of the waiver in miniature font barely readable or is it in BOLD ALL CAPS? Courts in a number of states have held that failure to use sufficiently large text such that the waiver text is equal to or greater in size that the surrounding text, or to not highlight all or a portion of the text, resulted in the unenforceability of the entire waiver. Lastly, it’s important that the proper procedures are met in order to maintain the maximum effectiveness of a waiver. The most critical aspect of the procedure is to require that
To maximize effectiveness of a waiver, the exculpatory clause should address not only the active and passive negligence of the club, but also that of the club’s officers, directors, members, employees, managers and other contractors as well. These additional parties are sometimes referred to as the “club’s released parties.” only if the intent to cover negligence is clearly and unequivocally stated in the waiver. This is because most courts presume that the parties did not intend to exempt the club’s own negligence, unless it was specifically addressed in the waiver. To maximize effectiveness of a waiver, the exculpatory clause should address not only the active and passive negligence of the club, but also that of the club’s officers, directors, members, employees, managers and other contractors as well. These additional parties are sometimes referred to as the “club’s released parties.” The second critical waiver element is the indemnity clause, in which the member commits to paying or reimbursing the club for any harm, liability or loss that may occur because of the use of the spa and fitness equipment or participating in spa and fitness activities.
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the member verifies, by executing, initialing or undertaking some other affirmative act, that they have read and fully understands that the waiver operates to eliminate any and all liability of the club in connection with use of the spa and fitness facilities and participation in spa and fitness activities. Clubs do not intend for their members to be injured, but they recognize that injuries sometimes occur, and members generally understand that waivers are an integral part of the club’s operating protocol. While it is clear that waivers can be an effective method to protect clubs from potential spa and fitness related liability, it is essential that each club reviews and updates its waiver as needed, and that the proper procedures are implemented. Only then can a club be sure it will receive the maximum protection available to it by use of the waiver. BR
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Todd duFeK
house committee
Todd Dufek is the locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona and is president and founder of the Locker Room Managers Association with a web site at www.yourlrma.com.
Questions Clubs Should Consider About Its Locker Rooms - Part I are the locker rooms at your club seen as, “a restroom and a place to change clothes” or “the heart and soul of your club?” How does the board view the locker room manager and locker room staff? How you answer these queries just might determine the success or failure of perhaps, the largest and one of the most important departments in your club. “Hey, just a second,” you say, your voice carrying more than a hint of skepticism. “Are you trying to tell me that they are an integral part of my facility? If so, how did you come to that conclusion?” Now without the golf shop and course, there’d be no need for locker rooms. In the case of the first, it’s a matter of size. If you add the square footage of the locker rooms together it’s likely bigger than most other departments in your club. And if you throw in the fitness center and related areas, which is often overseen by the locker room manager, it’s obviously the most prodigious area in the clubhouse proper.
dozens of holiday gifts and personal correspondence in the correct lockers. Secondly, I’d suggest that it’s as important as other departments because it’s the only place in the club that members have the amenities and personal grooming products on hand so that they can present the best possible selfimage in their personal and professional lives. Is there any other department in a golf or country club that has the amenities to make members look their best “from head to toe”… from the shampoo they use on their heads to the shine on their shoes? Third, the men’s and women’s locker rooms represent the last bastion where both sexes can truly be themselves without worrying about what the opposite sex thinks of their behavior. Fourth and finally, for most members and their guests, the locker room manager and staff are often the first and last points of contact. They provide the first and last impression of your club.
Is your locker room a place to “change clothes” or “the soul of your club” and “how does your board see the locker room manager and staff?” By explaining the significance of the locker rooms and only by understanding their importance can they be seen in the proper perspective by management and its board. One of the most important? Here’s the evidence: it’s the only place where members store belongings that matter to them – the most personal possessions with sentimental value that makes them priceless – while they are out on the golf course, working out or taking a shower. Wedding rings, watches, etc., are the responsibility of the locker room manager and staff. And if this manager at your club is anything like me at mine, then members trust them to put the cash from countless golf events, merchandise from the golf shop, 68
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So, what about the questions: Is your locker room a place to “change clothes” or “the soul of your club” and “how does your board see the locker room manager and staff?” By explaining the significance of the locker rooms and only by understanding their importance can they be seen in the proper perspective by management and its board. We’ll explain that and more in Part II. BR
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HEATHER ARIAS DE CORDOBA
INNOVATIVE IDEAS
Heather Arias de Cordoba is the associate editor of BoardRoom magazine. If you have an innovative idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.
Bethesda Country Club’s JumpStart Program Focuses on Employees Bethesda Country Club, a BoardRoom Distinguished Club in Bethesda, MD introduced the JumpStart program to increase employee morale and promote wellness and healthy living solutions. “The opportunity presented itself when we became one of America’s Healthiest Clubs,” said Brad Cance, the club’s general manager and COO. “We created a goal to increase employee well-being and realized that more was needed, as the club didn’t offer a program for promoting fitness and wellness.” With the increasing cost of healthcare, the management and HR teams determined that if their employees were part of a wellness program, the club would benefit from lower health care costs, a win-win situation for both the club and the staff. Over the course of six months, the original JumpStart committee was able to introduce employees to the program. “Our annual budget for the JumpStart program is $3,200,” explained Cance. “We are fortunate to receive $5,000 credit from Cigna, our health insurance provider, which is in addition to our budget. This allows us to support a number of different activities for our employees. We also work very closely with Cigna, to qualify for their assistance in funding a few of our annual programs.” The JumpStart committee set values and principals in place such as promoting healthy eating habits, exercise, and incentives to keep the employees motivated. “JumpStart has increased employee morale dramatically,” explained Cance. “It’s wonderful to see employees engaged, socializing and participating in a group exercise class, all while creating positive inter-departmental rela-
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tionships. The program creates an extra dynamic for the employees to increase their sense of family and not just feel that this is a place for work, and the committee gets to engage individuals daily and talk about personal growth. “We post monthly challenges and employees get excited about participating, especially when they have the opportunity to earn rewards for their achievements. Our goal is to find ways to keep them excited and committed to living a healthy lifestyle. “Some of our challenges include push-ups and burpees, and our health challenges include sleeping seven hours a night and drinking more water. In addition to challenges, we have created a support team to keep encouraging our coworkers in their long-term goals. We also provide a healthy salad bar at each of our complimentary meals,” Cance added. The program is growing constantly and the committee is learning what works and what doesn’t for employees, and there’s been growth and success through annual activities such as the 8K (pictured below left) and soccer team (pictured below right). They also monitor the weekly exercise classes for participation and adjust the times/dates offered based on attendance and employee feedback. “We are seeing such success with our Jumpstart program, and we’ve held true to our initial values and principals,” said Cance. “Our committee keeps up with the latest health and fitness trends to keep the program fresh and exciting, and this year we hope to add zip lining as one of our JumpStart outings. We are always looking for ways to improve by adding new members to the committee to bring in a different perspective.” BR
HEATHER ARIAS DE CORDOBA Heather Arias de Cordoba is the associate editor of BoardRoom magazine. If you have an innovative idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.
INNOVATIVE IDEAS
Cosmos Club Wins with a Unique Outdoor Dining Venue If you build it, they will come. And so, the Cosmos Club, a BoardRoom Distinguished Club in Washington, DC, did just that. The club custom built a ‘living table’ to take advantage of an underused outdoor space – alee off the club’s West Garden – and now it’s the focal point for an exceptional dining experience. “The idea for this was born out of a picture of a living table, presented at our F&B meeting by our chef,” explained Mitchell S. Platt, the club’s general manager. “We developed the concept internally by taking the idea to our building manager and gardener. “The engineering team handcrafted the table with builtin lighting, and our in-house gardener designed the living center floral and herb display. Both the building manager and gardener spent several hours a week on the project,
which cost less than $1,000 in materials plus the labor. It took about three months. “The intent was not to create a profit center, but merely to add another member amenity and experience. The outdoor table was originally used for wine dinners limited to 20 persons, but we are now offering this table as a private dining option,” Platt added. “Members who have attended the wine dinners have thoroughly enjoyed the ambience and for each event we have added more touches to make it more effective. We have recently added LED light poles for better lighting, adjusted the table size for more comfort and plan to add enhancements this season for easier storage.” All of which adds to the club’s member experience. BR
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ROB DEMORE Rob DeMore is a senior vice president, operations with Troon privé and can be reached at (480) 477-0558 or at rdemore@troon.com.
EXECUTIVE committee
Musings on an Original The Member-Owned Club
The Wall Street Journal recently published an article noting the rapid decline in the purchase of modern day grocery items such as margarine, processed cheese, and frozen juice concentrate, to name a few. Except for pre-sliced bread (one of the more brilliant food adaptations), it seems that consumers have been drawn back to original, more natural, choices – butter is better, artisanal cheddar is worth the butterfat content, and juice just tastes better when it’s squeezed by hand and free of artificial dyes. This “back to basics” trend might also apply to one particular classic: The member-owned club. In America, the original country clubs formed in the late 19th century were maintained by groups of friends so they could gather, recreate, and be merry.
too much. They may live in a constant state of balancing between glutton and glamour but in the end, the objective to make people happy is ever guiding. • Over the long haul, member-owned clubs are typically the best stewards because they are emotionally attached to preserving the legacy of the club. Traditions are sacred so all proceeds go right back into investing toward the club’s future. Proof of this can be found on nearly any ranking of “best clubs”, where most listed are invariably member owned. • Member-owned clubs recognize the role of their facility within their community. Nearly every member-owned club willingly and constantly offers up their venue and cash to support countless local charities, schools, scholarship funds, and more. • All stakeholders are treated like one big family, so member-owned clubs look, act, and feel like a family –
Member-owned clubs are free to use their resources (and typically bold enough to do so) to define and sustain their own unique culture. Want to have a member-guest tournament where every player goes home with a pony? A member-owned club can do it. Private facilities have undergone significant changes in governance and business structure over the last 30 years, with the member-owned model remaining a staunch hold out. The continual decline in member-owned clubs has helped fuel the fire under the changing landscape but, for all the lament over a business entity in which the owner and customer are the exact same person with conflicting views, there are also an abundance of riches available to a member-owned club: • Member-owned clubs are free to use their resources (and typically bold enough to do so) to define and sustain their own unique culture. Want to have a member-guest tournament where every player goes home with a pony? A member-owned club can do it. • Member-owned clubs just want to make their members happy, no matter what the cost – as long as it doesn’t cost 72
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warts and all. For better or worse, members care about one another and the employees, so they’ll talk about who or what is meaningful. The relationships are real and the experience for the members, employees and even vendors is truly good soup for a soul in these environments. Although many member-owned clubs may be experiencing challenges with operations, peeling paint, or an uninspired chef, that doesn’t mean change can only happen if the members are removed as owners. While many clubs have creatively sought and discovered new ownership groups to temporarily replace the membership as stewards of their club, it comes with a price. Sometimes there’s just nothing better than the original. BR
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LARRY HIRSH
GREEN 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
Rejecting High School Golfers Illustrates a Disturbing Trend One of the more disturbing trends I’ve observed lately is both daily-fee courses and private clubs rejecting the efforts of high school and college golf teams to play and practice on their golf courses.
pHoTo Cou RTe sy: lar ry st . pi e r re / s hu t te rsto ck.co m
We all know that the golf business has challenges and that in many cases every bit of revenue is critical, however, golf participation is shrinking. According to the National Golf Foundation, in 2015 there were more than 1.6 million fewer golfers in the U.S. than just four years earlier, with participation down to 8.2 percent from 9 percent. Participation among minorities (nonCaucasians) has dipped from 5.4 million to 4.7 million. Not long ago, we learned that after years of golf’s largest player segment comprising of the 45-55 age group, it has shifted to those aged 55-65. That’s a bad sign because it means we’re not doing a good job of attracting the next generation.
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In many cases, especially where parents aren’t golfers, high school golf teams represent the best and only opportunity for kids to not only be exposed to golf, but to learn how to play and experience the many additional lessons golf offers. More importantly for the clubs, it expands the golfer population of the future, who will become patrons and members. In those areas where caddies were once prominent and now extinct, young people just don’t get the same chance to learn the game. Conversely, where caddying is still alive and well, many young people benefit from not only exposure to golf and the players they carry for, but they also typically get to play and often become hooked on the game. A natural extension of this is playing their high school golf team. When I played high school golf, we didn’t have to pay a dime to play. We just needed equipment, shoes and a willingness to play. My son’s golf team charged a fee for tryouts to pay a green fee for qualifying rounds, which weren’t permitted on the team’s home course, a private club that allowed matches but no qualifying or practice rounds. Further, the kids have been prohibited from using the practice range. I even hear of clubs, that for little or no reason, and despite having plenty of capacity, are discontinuing relationships with school and college golf teams or considering terminating their access. There aren’t a lot of problems associated with golf team play for the clubs. They don’t lose any money and most importantly high school and college golf represents the best bet for the future of the game and future patrons and members. Yes, there’s the risk of some mischievous kids doing things kids do, having to teach them how to take care of the golf course or observe some of the “rules of the road”, but isn’t that what bringing people into the game is all about? Yes, there may be a few times when the golf team has a match or practice that interferes with some play, but the investment in the future is worth a little inconvenience. And for good measure, if your course has a practice area, players can go work on their game and improve. Golf isn’t embracing the future and that’s one of my biggest concerns for golf. Not only are we losing players, but we’re discouraging Millennials, minorities and women simply by holding on to traditions, which in some cases are counter-productive.
Society, whether we like it or not, has changed. People don’t dress, communicate or even work the same way as in the past. Our game needs to reconsider how important the decision is in banning cell phones when it may be the cell phone that allows some of us to break away from the office to play golf. Many of our game’s traditions are great and should be preserved. Spirit of the game, care for the course, pace of play and consideration for other players are just a few of golf’s unique traditions that should be preserved, and are listed in the Rules of Golf. Playing without a referee is also another great tradition. We call penalties on ourselves. There’s nothing in the USGA Rules about how one should dress or whether a person should or should not use a cell phone. I’m not suggesting an elimination of all rules, but golf is shrinking.
Yes, there may be a few times when the golf team has a match or practice that interferes with some play, but the investment in the future is worth a little inconvenience. And for good measure, if your course has a practice area, players can go work on their game and improve. Some say it’s dying. Our game uses too much land, inefficiently, takes too much time and costs too much money. If we don’t embrace new markets, like TopGolf is doing successfully, we’ll continue to see a decline in participation, more golf courses will close and golf will truly be an elitist’s
game. I disagree with President Trump’s assertion that golf should be “aspirational.” There may be ways, as suggested by a recent article in Golfweek that President Trump is good for the game, but our game needs growth, along with the diversity that brings that growth. 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
Minimum Wage and Its Effect on Golf This year, a variety of new things affecting golf will be implemented. While each state has set a minimum wage that supersedes the federal minimum wage, it’s quite apparent that many areas are headed toward a $15 minimum wage in the years ahead. With budgets just beginning to grow after the recession it appears one line item – labor and the benefits that go along with it – will grow at a much quicker pace than the Consumer Price Index. The cost of labor to maintain a golf course is about 60 percent of the golf course maintenance budget. In the last eight years, many clubs have given no raises or less than a three percent raise, even though that has been the recent CPI number. Now imagine some states that have required a $1 per hour pay increase, which at $10 is a 10 percent pay increase. In the years ahead there will be similar pay increases in order for businesses to keep up with the state and federal laws. This could have several effects on the business of golf for years to come. The fact that this is happening is not in question but the question is, what is the golf club doing to manage its payroll effectively for the overall financial success of the facility. Many businesses have had to take a hard look at how they are doing business and certainly a part of that is labor costs. Have you noticed that most airports have many automated kiosks for checking in rather than employees that formerly handled that job? Using staffing that does not include any overtime is one way to keep labor costs in check. With a seven-day work
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week it surely takes some juggling by golf course superintendents and the ability to be creative with a labor pool. Think part-time labor and use of flex schedules to accommodate staff while operating at peak efficiency with minimal interference to golfers. The use of robotics in golf course maintenance is possibly one of the most interesting concepts in labor savings. At the recent Golf Industry Show, the Cub Cadet, which is now in use at several golf courses across the country, was on display. This greens mower unit also acts as a roller. It operates with a GPS system to mow the greens in a programmed pattern. It can mow in a variety of directions and be programmed to alter the cleanup pass on the perimeter. So where do we see the labor savings? Let me paint you a picture of an operator going out to a specific green with his robotic mower. The operator takes the time to remove the flagpole, fix ball marks, pick up any debris, rake the bunkers and possibly do the tee service on the next hole, all while the robotic mower is mowing the green. This may take the place of several employees for these daily tasks. A course in southern California estimates just over a twoyear return on investment. If this works, certainly fairway mowing using robotic mowers can’t be far behind. These units run on batteries so they are efficient and eco-friendly. The cost is higher than a regular greensmower but that may go down in time. There are already sprayer prototypes that will soon be able to operate robotically and spray the greens, tees and fairways so staff and players can have minimal contact with pesticides. Technology is advancing at a rapid pace. Much of what we will see first began with a term known as “precision farming”, which allows for eco-friendly herbicides spot treatment on crop fields, saving money on product. Golf course superintendents will find ways to keep labor costs in line. Equipment manufacturers are right in line with the development of technology that will create labor savings we’ve never seen before. For golf to grow we will need to keep our costs in line to stay competitive. The next few years will see much more labor-related technology to meet the demands of business and to help keep labor costs in check. 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 based greens. He can be reached at (913) 706-6635 or via e-mail: daveistec@hotmail.com Web page: www.istrc.com
The Birth and Aging of a Golf Green Editor’s Note In the January/February 2017 issue of BoardRoom magazine, we published Dave Doherty’s article, “Do Greens Need to be Aerified?”, an article first published 10 years ago in BoardRoom. When initially written, there was limited knowledge about physical properties, as we know it today. Dave’s article apparently caused quite a stir among certain superintendents because the knowledge base has grown so significantly over the years, and no reference was made to that fact. Dave Doherty because of recent health issues has been unable to write current articles for BoardRoom and the decision was made to reprint an earlier article. We apologize for the oversight in not stating it was a reprint from an earlier issue of BoardRoom. Dave’s article in March/April was first published in 2006. When a golf green is constructed using a USGA recommended sand and a small amount of organic matter, normally in this country a Canadian sphagnum peat is mixed with the sand, to give the greens mix some water and nutrient holding properties, as well as provide food for the microbes. The amount of organic matter/peat blended into the sand to form our greens mix varies, depending on the architect’s specifications. The architects’ job is not an easy one. They need to consider the quality of water available for irrigation purposes, the type of turf selected, climate, size of greens, number of rounds played, green speeds desired, aerification budget and many other factors to determine the proper mix of sand and peat that will be ideal to support the turf selected and to provide golfers with the putting surface desired. Normally the ratios of sand to peat by volume are between a 95/05 and an 80/20 mix. Today however, we are seeing more and more greens being constructed with the peat being on the lower end of five percent and an inorganic amendment of around 10 percent being added to the blend resulting in an 85/05/10 mix of sand, organic, inorganic. Most inorganic products used in our industry will provide additional water holding without sacrificing air pores and will also provide additional CEC [cation exchange capacity]. A cation is described as the ion in an electrolyzed solution that migrates to the cathode; broadly: a positively charged ion that will attract and hold nutrients that have a negative charge. 78
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The logic behind this thinking is to start the greens with as much in the way of air pores as possible without making them too droughty. If you will remember in my last article the point was made that roots from our turf can only live in air pores not in solids or water pores [Rooms at the Inn]. With this understanding of the need for oxygen for our turf, it makes sense to start our greens out with as many air pores as possible but still have adequate water and nutrient holding properties. From the day we seed, sod or sprig [start our grow- in], the number of air pores in our greens start to decline. A green built with a USGA specified sand and organic material will start its life on average with 55 percent solids and 45 percent pore space. The pores will have a distribution of around 30 percent air and 15 percent water. At the two-year stage of a green’s life with what is considered normal twice a year hollow tine aerifying, the greens properties will be 60 percent solids and 40 percent pores. The distribution of air and water pores will have done a flip and changed to an on average of 15 percent air and 25 percent water. Greens of the older turf species require a minimum of 15 percent in the way of air pores for the plant to have an adequate oxygen supply. The newer species of bent and Bermuda grasses require a higher amount of oxygen in the greens mix because of the higher turf and root shoot density. We like to see a minimum of 18/19 percent and preferably 20/21 percent for air pores. Our research shows that the new grasses at 20/21 percent air pores normally do very well and at 15 percent tend to struggle. There are many reasons for the loss of air pores. When the sand/organic mix is placed in a green’s cavity it is seldom compacted and during grow-in is in a somewhat fluffed condition, even after rolling. As the greens mix settles the compaction process starts and the loss of air pores begins. During the grow-in process we will use a large amount of irrigation water and products, which adds to the compaction and contamination process. After the turf is established we move the compaction process along even further with the addition of equipment and foot traffic on our greens. Most compaction and loss of air pores is confined to the top one to two inches of the greens mix. This compaction and loss of air pores is the reason we aerify. BR
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DAVE DOWNING
GREEN committee
David s. Downing II, CGCs is a past president of GCsAA and is currently a vice president and southeast agronomist for Golf Maintenance solutions. He can be reached at (843) 241-7250 or via email: dave.d@golfmsolutions.com
Why Does a Club Need a Master Plan? What is a master plan? Why should a club have a master plan? Who should create it? What information should be gathered to prepare it? How is it implemented? If these are the questions you have about a master plan, let’s get some answers! A master plan starts with strategic planning sessions to determine the vision for what the club needs to do to be successful in the future. In fact, this strategic planning is what lays the foundation for the details in the master plan. This should involve a deep dive into every area of operations. Are all departments operating efficiently and meeting the needs of the membership? Does the club have the infrastructure, equipment and resources needed to provide the product the membership needs? What are the deficiencies in each area and what will it take to remedy these deficiencies? Are there standards established that allow staff to know what the membership needs? Is the membership’s vision of their needs different from what can be produced within the confines of the current infrastructure, equipment and resources? Gathering this important information is time consuming but vital to creating a vision that is real. Staff and membership need to be involved in the process of information gathering and creating the vision. If all stakeholders are not involved, then the chances for success of creating the vision can be extremely difficult to achieve. This process involves very open and honest discussion about the costs to meet this new vision as it relates to infrastructure improvements, new equipment needed and changes in staffing, marketing, sales, etc. that require resources in place to be successful. There are club specialist companies that can guide you through this strategic planning process. Many clubs use consultants to provide an organized and methodical process to this planning. It’s a time-consuming process that can fail if there is not an independent guide to keep it moving forward. At the end of this process there will be decisions that will need to be made to produce the vision that has evolved out of the strategic process. Once this vision is agreed upon then the master plan can be built to provide the steps to be taken to achieve the vision. These steps are any changes needed in the operation of the club as it currently exists. 80
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These operational changes may seek to find savings without loss of quality, or new services to generate funds needed for capital expenditures identified to improve the infrastructure, including adding needed equipment. It might mean an increase in dues to generate more revenue to support changes in programming or services. The changes that need to occur should be prioritized based on need and the ability of the club to fund and implement the changes identified. A good master plan should not just be a wish list but a plan that can be implemented in a way that won’t place a financial burden on the club. Too many clubs make decisions based on wants and become burdened with debt because they did not focus on the needs. The master plan should also include a timeline that shows when each step can be completed. This master plan is a tool to help the club make the best decisions to insure it can afford the changes identified and allow the time needed for proper planning. It is a roadmap used to guide the membership and staff on what is most important and what needs to be done now and in the future to keep the club operating efficiently. To be successful there must be acceptance by all the stakeholders on every aspect of the plan. Communication at every step of the process is critical to insure this acceptance. The staff needs to understand there are operational savings that can generate funds for the improvements. It is important they not only make the changes but do it with the goal of creating a longer term successful club. If it is determined that a revenue increase is needed via dues, minimums, increases in prices of goods and services etc., the membership needs to see the results to remain engaged and trusting that the increases are being used wisely. Communicating effective brings trust. Producing the vision brings trust. There will be times when the master plan needs to be adjusted and again communication of the why’s is critical to keeping everyone’s trust. Many clubs make these master plans part of a set standards and operating guidelines that the board of directors, president, committees, and staff must follow. The days of a president, greens chairman or house chairman doing what they want are gone. Personal wants have proven to divide clubs, reduce revenues and create financial burdens. So, a strong and com-
mitted board and members who can make the best decisions that serve the needs of all members are what is needed. There might be pitfalls? This is a very in-depth process that can take considerable time and sometime if plans begin to fail, “wants” rather than “needs” get pushed. As an example, it may be determined that the golf course is too difficult for the overall membership and it is decided that changes making the course less difficult will be made. In today’s world eliminating bunkers is a popular choice. Not only does this typically make the course easier but is also less costly to maintain. Is it necessary to hire an architect to eliminate bunkers? If so, who do you hire, what are the fees, etc.? Hiring an architect can be a good idea but what services do you need? Do you need a “name” architect or someone who can do the job and retain the look and feel of your course? Once a decision is made, how is it accomplished? In house, local contractor, or golf course contractor? All the options should be looked at and considered along with the financial and operational disruptions. As part of the master plan these types of questions should be answered and financial projections based on the answers. Remember that old saying, “A failure to plan is planning to fail.” Well, the need to plan is real! A master plan is a roadmap that can get you going in the direction the club needs, to be sustainable, for the short and long term. It doesn’t mean there won’t be detours or a change in the route along the way but the destination should remain the same! Another favorite saying, I have is this: “If you do not have the time to do the job right, how can you find the time to do it again!” Great planning prevents doing things twice and doing them right the first time!! B R
PAR BAR | CASE STUDY
All the Energy You Need For a Round of Golf Golf is four hours of moderate exercise. To play your best you need the same energy level throughout the round. The right form of nutrition will help. PAR BAR is a nutrition bar created by life long golfer and food scientist Gerry Mullally. It is a matrix of protein, slow release carbohydrates and fiber that will provide the even, energy profile necessary to play your best. PAR BAR is made from only natural ingredients and is gluten free. Every bar contains an extract of green tea, called Theanine, which is responsible for the calming effect people describe when drinking green tea. This ingredient helps with mental relaxation and improved focus, benefits that every golfer and athlete seek and is present at the optimum level confirmed by clinical studies. PAR BAR comes in two flavors, the original peanut butter chocolate and nut free raspberry chocolate. One bar provides all the energy needed for a round of golf. And they taste great! Order today at www.parbargolf.com and use the discount code ENERGY to get our best price. Shipping is always included. For more information contact gerry@parbargolf.com BR
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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.
A Private Club’s Return on Investment The business world and the world of private club operations spin on a different axis, and there is a stark contrast between a definitely “profit oriented” enterprise, and a distinctly “benefit oriented” pursuit of a private club. All member-owned private club net departmental operations lose money. Otherwise, there would be no need for dues. You are cordially invited to … Successful private clubs are driven by members proudly inviting those they share common interests, family ties, personal friendships and professional relationships. But what if every member paid their dues, but didn’t know each other or frequent the club? A cardboard cake covered with frosting! It looks good − but nothing of substance inside. Fore! A private country club annually accommodating 18,000 to 22,000 rounds of golf would, if open to the public, generate two or 2.5 times that. Dues offset unrealized green fee income from tens of thousands of rounds of golf that (by design) never happen. Outside groups? Many private country clubs decline requests to host large golf outings that can generate significant positive cash flow. They want as few rounds played as possible at their club. (Except for their own, of course). A banquet hall? A private club annually generating about $2 million in F&B sales could, if opened to the public, reasonably expect three to five times this. But most private clubs decline altogether or seriously limit non-member use. Members pay dues in order to have the facilities and staff available to members. Imagine informing a member that non-member events preclude them from being able to use their own club. Really? Let’s make some sense out of all this. Private clubs offer menus, hours and days of operation deemed nonsensical when analyzed by F&B professionals. Yet, undaunted by hard data, clubs serve members what, when and how they might like. Lost in space? Retail operations have industry standard ratios between facility square footage and sales. A private
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clubhouse represents a plethora of non-revenue producing square footage. Yet, this space must be furnished, maintained, insured, “staged” and oftentimes even staffed. Major capital improvements are on-going and annual maintenance never deferred. Initiation fees are dedicated for capital improvements. A capital reserve plan (to fund depreciation) is critical. These funds cannot co-mingle with regular operations. Dues income must support day-to-day operations, which, by design, runs at a financial loss. Do the math – For every 300 members, dues income of $25 per month drives $90,000 to the bottom line. Ask any public golf course operator how many rounds of golf it takes to net $90 grand. Or, ask a good restaurateur how many meals it takes to net that same amount. Members of a private club are not interested in traffic like that at their club. Instead, they want it private. For their exclusive use. When they want it. How they want it. And, they are able and willing to pay dues for it. Your table is waiting. Members expect to be greeted warmly, by name, and not sent to the bar for an hour before being seated in a dining room packed to the gills like the public restaurant down the street. Staffing levels are always higher at clubs ready to serve when members desire to be served – rather than the maître d’ or golf starter deciding when they are ready to serve. The availability of the club and staff is of value to a member. Private club return on investment is realized in personal enrichment, cultural growth, good health, making new friends, and enjoying family. Years back, private club membership may have been linked to perhaps gaining business contacts. While the potential for this will always exist to some minor extent, the times have changed. Nowadays, membership at a private club is an ideal quality environment in which to spend time and enjoy activities with the entire family. This represents the greatest R.O.I. yet! BR
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ELAINE PATTERSON
TRIBAL MAGIC
elaine patterson is the organization and leadership advisor at Breitburn energy and previously spent 25 years at unocal Corporation in a variety of senior management roles in HR/organization development. And, of course, she is the spouse of Gregg patterson, Ceo Tribal Magic and retired club manager. she can be reached at efpatters@aol.com
An Open Letter to Club Managers I’ve had two careers for more than 35 years: one as a human resources manager and one as the spouse of a club manager. I’ve been advising leaders at all levels in my business, serving as a sounding board for my husband Gregg, and observing club managers all over the world.
I love being with club managers – you’re sociable, welcoming, and you’ve always forgiven me when I offer opinions that you didn’t ask for. This is another one of those moments when I ask forgiveness rather than permission. I’m writing because I care and hope you will keep that in mind. As an HR practitioner and married (for life!) to the Tribe, I have a few observations about your profession. You often describe yourself and your work as “unique.” I think there are some distinctive things about your profession, but many things are not unique.
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• “My work schedule is crazy!” I get it. Gregg and I never had the same days off for 30 years. But today, no serious professionals in any business are working 9-5, Monday-Friday anymore. The leaders I know work long hours, lots of weekends and holidays, and travel frequently (often without notice) creating nonstop disruption to meals, sleep and family plans. • “We’ve had to relocate five times!” A lot of professionals relocate and the pressure to do so for career advancement is still very strong. I managed hundreds of employee relocations, some of them international, and the challenges for trailing spouses and children are the same for club managers, engineers, or executives. • “We’re fired every time a new board wants to move in another direction!” The average U.S. CEO lasts for only a handful of years, not to mention the thousands of managers who lose their jobs because of restructuring, politics, acquisitions, or “moving in another direction.” I know this personally – I lost a 25-year career because of an acquisition. It happens all the time. • “We’re people pleasers!” Yes, your goal, with your team, is to deliver pleasant experiences to your members and guests. (That’s a lot different than my company’s goal of producing oil and gas for a profit.) But that doesn’t mean you spend all day sprinkling pixie dust and granting wishes. You spend a lot of time having difficult conversations with people, resolving their problems and intervening in disagreements. Being able to do these things – not just make people happy – is vital to your success and every manager in every business has to do the same thing. So, what do I think really is unique for you and your families? • The unrelenting grind of working every weekend and holiday. That certainly wore on me from time to time. • You must be “on” all the time at the club … or close to it. Most other managers I know – including me – can take a break from people or be in a bad mood more often than you can. • You have amazing long-term relationships with members and their families. You know them all, sometimes going back three generations, and have something to say to all of them whenever you see them. I don’t. And when
you’re telling me a story about a member, I rarely know who you are talking about. I definitely felt a little left-out now and then. • Club boards seem to turnover faster than private sector boards, with less continuity of experience. I think that leads to more frequent and seemingly arbitrary “moving in another direction” terminations. I worked with departing managers and families all the time, but they often have a lot of support from the company. You rarely do. IS THERE ANY GOOD NEWS?
Absolutely, yes. One of the first things most club managers say is, “I love what I do.” I know Gregg loved what he was doing. What neither of us appreciated for a long time is that his love for his work was not just a gift for him, it was a gift for me too. If you’ve ever lived with someone who hates what they do, you know what I mean. Gregg’s love for his work inspired me to see my work in a more positive light. I also had the pleasure of seeing how his members and employees loved and appreciated him and I was always so touched when they would thank me for sharing Gregg with them. I consider that a gift to me too. And I can’t forget some of the other “perks” of being married to a club manager. You’re so friendly and outgoing. You find it easy to get along with in-laws and strange relatives. (My father adored Gregg and consistently sided with him against me.) I met some amazing people, both members and employees, who were always willing to help us and yes, I loved those occasional tickets to Dodger Stadium suites, Lakers games, and sold-out Rose Bowl games. I had some unhappy weekends and holidays, and some frustrations over impossible scheduling with friends and family. But those frustrations led us to some creative adjustments that helped make things easier over time.
We made our own traditions, which were even more special because they were unique to us. We moved our Thanksgiving afternoon meal to Thanksgiving night and often to Friday (when everyone else was shopping on Black Friday, we were relaxing and eating). We made vacation time “sacred” and always went somewhere new together (no using vacation days to clean the garage or hang around the house!). And we educated our friends and family to understand what it meant to run a multimillion dollar business (the club!) so that they would honor and understand what Gregg was doing. WHAT’S THE DILEMMA FOR THE FUTURE?
Making your club “family-friendly” is on the agenda at every club conference. It’s taken me all this time to come up with a follow-up question – for whose family? From what I can see, many clubs are doing a lot and
spending a lot of money to become more family-friendly – for members, but not for their manager. CMAA World Conference was filled with students (including many women!) and aside from finding a job, what was their number one question? Work/life balance. A recent EY (Ernst & Young) Global Generations survey showed that two-thirds of Millennial men would change jobs, give up a promotion, or relocate in order to secure better work/life balance. The fact is, 78 percent of married Millennials are in two-career relationships and while they may want to have one partner at home, many won’t be able to afford it. A few decades ago, top law firms and accounting firms were some of the least family-friendly workplaces. When they finally faced their problems attracting the best and brightest graduates (many of whom were women) and retaining ➤
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When I think about my experiences, listen to dozens of other spouses and managers, and see the smiling faces of people trying to build a career in clubs, I think it’s time to speak up about these challenges. Change will be slow, but there are people struggling with these challenges right now and most of them believe they have to struggle in silence. Let’s acknowledge the “elephant in the room.” high-potential employees with families, they changed their practices and policies. Your board members are at companies that made those changes, and they’re not strangers to the concept. What could be done? • Your work hours may never be “normal”, but they could be better – for you and your staff. Why is it impossible to have one weekend off each month (or even each quarter) and possibly trade-off a few holidays, especially the lesser ones? Small steps could have a huge payoff. • Fight off “visibility blackmail” (remember Gregg’s article!). Create new
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expectations with the board about when you will and won’t be at the club in person. Set new expectations with the board when you’re starting a new position, and help your employees do the same with you. • Take your vacation and make sure your staff takes theirs. Your members take vacation from their jobs. Your board members – at least the good ones – know that if there’s no well-trained person to act in your absence, you’ve failed at an important leadership responsibility. Insist on better family relocation assistance. There are agencies in every major city that specialize in
settling-in services for new families, including schools, commuting, housing, job hunting, driver’s licenses, and everything in between. How the family gets settled is the number one factor in a successful (or failed) assignment. A tour around the “neighborhood” (whose neighborhood?) by a member spouse is not relocation assistance. Protect yourself and your family – negotiate a robust severance package. I know many people hate to talk about it, so think of it as insurance for your family. I hope you never need it, but it will give you peace of mind. Engage other people who might be able to help – can local chapters do more to help the new club manager and spouse? Can recruiters do more to raise these issues to boards? Are there things that professors or advisors should be addressing with student groups? Is there more to talk about at conferences? When I think about my experiences, listen to dozens of other spouses and managers, and see the smiling faces of people trying to build a career in clubs, I think it’s time to speak up about these challenges. Change will be slow, but there are people struggling with these challenges right now and most of them believe they have to struggle in silence. Let’s acknowledge the “elephant in the room.” As a first step, I ask you to take this article to your spouse and see what they say after they read it. Let the conversation continue…. BR
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inclined to pick items à la carte – what they want only,” Pennell added. In his opinion, Steve Graves feels clubs should be offering more membership categories, “but not simply for the reason to offer more. Each club should contemplate offerings that would assist in both membership retention and membership recruitment. “However, there must be strong consideration as to the ‘risk versus reward’ consequences of expanding membership offerings. The most obvious “risk” is having more current members desiring to convert to the new lower dues category than individuals outside of the club desiring to join the club,” Graves cautioned. “An example of this strategy is to create an ‘individual membership’ for people who have non-golfing spouses, with a lower dues rate (approximately 20 percent reduction). Unfortunately, there commonly would be many more members wanting to ‘downgrade’ to that offering than prospective members wanting to join. Consequently, a club can ’sink the boat while they are trying to save the boat,’” Graves emphasized. A strong point of contention today is the single’s membership…or lack of it at many clubs, and this is one membership Graves feels would attract more potential members. “Single memberships would be of interest to non-married individuals – a membership is for ‘non-married individuals’ with no dependent children under age 23),” Graves explained. “Many clubs make the mistake of only offering ‘family membership’ when, clearly there is a trend in society today of not getting married.” Other possible membership Graves suggests include: “Weekday memberships for individuals (commonly seniors) for which their weekend play is not as important to them and they have availability on weekdays. This membership has a lower joining fee and lower dues structure, and draws some individuals from weekend play, where it can be argued clubs have compaction problems. It moves these members to weekday play where the golf course is wide open,” Graves added. “Low priced ‘dining only’ memberships have become very popular. No athletic usage (no golf, no swimming, no tennis, etc.) just the ability to enjoy dining and social events. This is a great ‘catch pool’ for older members who no longer are using the club for athletics but want to remain at the club. It’s much better than having a ‘leave of absence’ policy,” Graves intoned. So how do clubs arrive at a cost for their memberships? “Usage opportunities tied to specific categories is the general baseline for establishing dues,” explained Coyne. “Some clubs provide all-inclusive usage opportunities while others charge à la carte ancillary services. The basis for cost of dues is generally tied to operational costs, while trying to remain competitive.
“Initiation fees, on the other hand, have had no sense of rhyme or reason. In fact, in the golden age of membership growth, initiation fees soared and in decline they’ve plummeted, often to no initiation fee at all. This practice of leading on price is one of the great tragedies of our industry. Both the financial and moral integrity of the private club is challenged when discounting is the lead process,” Coyne suggested. “As with categories of membership, initiation fees should first be based upon your market’s ability to afford. Likewise, relevance of the club’s offerings must match the marketplace it serves. When these principals are observed, at least in my opinion, there is no obstacle that cannot be overcome.” There’s consensus on club usage and payment. “The price to join a private club should vary depending upon ‘how much of the club is used by the member,’” Graves added. “Pricing of private club memberships is much more of an ‘art form” than it is a ‘science’, and many factors enter into the pricing of the ‘joining fee’ for a private club. “It is my experience that private clubs have become so fixated on the need for ‘operational dues income’ that they are willing to forego or accept a greatly reduced joining fee. That is an enormous mistake as joining fees are critically important revenues that should be segregated funds, specifically to fund capital improvements and pay down debt. “Joining fees should be high enough to be logical in the given geographic economic market (it will be, logically, ➤
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more costly to join private clubs on both coasts than in the Midwest) but low enough to make sense as to the financial commitment being asked for the ‘privilege’ of joining the club,” Graves explained. “The rest of the membership categories would then have proportionally lower joining fees than the top category of membership.” Graves offers the following examples: Full golf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000 Associate golf (ages 33-39). . . . . . . . . . . . . . . . $7,500* Associate golf (ages 21-32). . . . . . . . . . . . . . . . $5,000* Sports (tennis, swim, fitness, social) . . . . . . . $3,000 Dining (no tennis, swim, fitness, social) . . . . $1,000 * As a point of reference there would not be additional joining fee payments as associate golf members progressed by age to full golf status, and as a further point of reference, the qualification of an associate member would be based on the age of the oldest spouse, if married. A club’s future however lies with the younger generations, which means junior memberships. What are the parameters and when should they be offered. “Less that 20 percent of clubs engage in market due diligence. If they did, it would be easily observed that peak earnings in nearly every community in this nation does not occur until 55 to 65 years of age,” Coyne reiterated. “Successful clubs react to this market reality by matching age offerings to market along with financial incentives to capture the younger market early and easily convert them as they reach the age of majority. “Nearly every club in the country could benefit from matching offerings to the market they serve, and the lifetime value of your members is increased the earlier that you capture them as members,” Coyne stressed. “First and foremost, the name for junior memberships should be changed,” Graves insisted. The word “junior” does not reflect the quality or financial capabilities of a successful young person who would consider joining a private club. We strongly recommend the phrases “associate” (similar to law practices where an individual is an associate until they become a partner). “By and large we see these memberships being designed at much too low an age offering. ‘Forty is the new 30’ and as such we recommend that private clubs have tiers of associate memberships. Each tier would have a lower dues structure that would “stair step” up to the 100 percent dues structure for a full membership,” Graves added. Here are examples: Full golf . . . . . . . . . . . . . . . . . . . . . . . . . $600 per month Associate golf (ages 33-39). . . . . . . . $480 (80 percent) Associate golf (ages 21-32). . . . . . . . $360 (60 percent) 90
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“Junior or associate members should naturally matriculate to regular membership status at age 41. They would not pay any additional joining fees and they would convert to the full dues structure. “Some private clubs have become even more aggressive in the tiering of memberships and have taken their “junior” membership up to age 44 with their full golf memberships beginning at age 45,” Graves explained. “For years, I’ve thought that a sports social membership should be the primary membership with “golf options” added on versus the traditional memberships of full golf or social,” Pennell injected. “Golf rounds are down or flat but socializing and using family or sports amenities are in peak demand. “If you look at trends with young people and some workstyles today, I find there is a possible niche that clubs can serve. Places like WeWork or the new Women’s Only Social Clubs in New York, The Wing, tells us that many people are seeking a place to work and socialize as much as relax and socialize. “Clubs have to remain true to their brand, look at their target audience, understand how these people live and work and see if there is a membership type that would make their lives easier. “So many clubs are throwing out quick fix new memberships hoping to boost their dues line, but sometimes it’s postponing the inevitable lost members because the people these quick fixes attract may not be best suited for the brand or values of the club,” Pennell opined. “I don’t know if it is so much about offering the right membership as it is about creating the right value proposition for membership. Clubs are viewed as ‘stuffy’ and ‘too traditional’ for today’s modern members sometimes. In my opinion, Lakewood Country Club in Dallas, Texas is an example of a club serving the needs of the modern member. They have created such a great value proposition; their members are raving fans out in the community – and that is often the best membership marketing a club can have. “I’d encourage everyone running a club to watch trends in other industries and see how they (clubs) may need to evolve and change to remain relevant. Everyone talks about it, but few are actually making the changes necessary and really embracing it,” Pennell cautioned. “Technology, a more casual way of living and working impact how a modern member evaluates a club for membership, “Can I live my life there? Does it make my life easier? More fulfilling?” she queried. “If the club does not enhance a member’s life in some capacity, it will be a difficult sell. “Consider how technology allows targeted marketing and how members network via Facebook, Twitter, Snapchat, Instagram, etc. The traditional reason –social networking – for joining a club is not the only reason to join anymore be-
cause of the option people have. How can clubs respond to these trends in other areas of people’s lives? “Interactive websites, fun dining experiences, child care, a ‘pool compound’ frequent opportunities to socialize, workout and opportunities for current youth activities are the minimum expectations these days for a country club. Golf continues to be the third to fifth driver to join a club, yet many clubs spend most of the capital dollars on the golf course,” Pennell suggested. “I’d encourage every club to view their club as a whole and see if it is attractive to families; there is no question that is the member of today and the future. I’d also ask, how can the club serve the needs of a dual income working family who may work out of their home? “College students today turn in homework via the web and Moms follow high school on Twitter to get information about school closures, sports schedules, etc. and it will only continue. We must realize that a 35-year-old today has had access to the internet since before they were 10 years old. If we continue to limit how they use technology at the club, we will never attract them,” Pennell observed. PUBLISHER’S FINAL THOUGHTS
There certainly have been some shifts in thinking over the past few years as many private clubs have struggled to retain members, to find new members and to simply stay afloat. Many factors have affected private club memberships, including the fact private clubs are no longer “your daddy’s or granddaddy’s clubs.” Societal influences today as we’ve read, are much different. Many clubs, for example, are more family centric, golf is not as strong a component or draw as it used to be and the family decision making process is changing. Today when a family member or family is considering a membership it’s often the female member who drives the money decision making, and who has developed an awareness of a private club, often through friends. There’s often a developing interest and perhaps a trial to see if it works for the family, through a guest members play etc., and based on what they see, the potential member will decide to join. They ask questions: Does this particular club offer the member experience my family wants, and if so, what kind of membership do they want, or is available? These questions…and answers will often guide potential members. To be sure the club they’re thinking about joining must have the amenities and intangibles they seek, and if it doesn’t they’ll move on to one that does. The fact is many referrals come from people who themselves joined the club in recent years, and they have a pipeline to others who don’t belong to a private club, especially friends who have a lifestyle that allows them the time, and money to afford a private club membership.
Question is, how do private clubs take advantage of these possibilities? Where should they begin their quest? I understand not all clubs are the same and have the same issues. But, for many clubs that want to have a full membership, respect legacy and loyalty, and promote golf in the community I suggest multiple categories of membership and two areas that we need to look at are senior and junior memberships. Seniors memberships should be a single membership with dues around half of regular’s dues with a starting age between 70 to 75 years old, and with only weekday play. Junior memberships are very important. We, in the golf industry must develop the next generation of private club members. The onus is on us! This starts with varsity high school golfers on the golf team in your community. Junior memberships can be started with limited play, for example, limiting the golf to 10 players per year, with affordable dues. Juniors must qualify for this through their school grades, understanding of the rules of golf, respect of the game and scoring. Juniors could be required to volunteer for charity golf tournaments at the club. If every private club did this, we would be developing 50,000 golfers every year... great for the game, the community, and your club. At least, that’s the way I see it. BR 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.
Boring Reading 101 You Better Read! Consider this. You’re the CEO of a company that’s worth millions of dollars. Your main product is a service oriented deliverable. You report to a body of owners who have direct investment into the business, and their shareholders frequent your business all the time. There are multiple - three to four dozen on average - interactions of your owners and your staff, every time they come to the business. If your employees at your business could tell your business owners anything at all - any problem they have personally, or otherwise, would that be good? Well, certainly if the employees are happy, right? Isn’t that the key? Of the total number of employees in most work forces, according to Gallup polls in 2015, only 32 percent were happy or engaged in their work. That leaves somewhere around 68 percent not necessarily happy. In most businesses, I’d guess that means that about 30 percent are content, just not thrilled to be there. And, that leaves another 30-plus percent who are probably not great folks to have on your bus. Ok, let’s do some “private club” math on this: In our industry, most of our staff members are really happy because, in most really good clubs, the employees stay forever. Why? Because the members treat them well, pay them well and keep them happy. So, let’s be gratuitous and say that 65 percent of our staff is engaged and really happy…maybe more? Back to Gallup, if in private clubs – good private clubs – 30 percent of our staff is not engaged, then there’s got to be at least three to four staff members that are really not happy. Sad to say but just data makes it true. So, back to my question: If your employees at your business could tell your business owners anything at all any problem they have personally, or otherwise, would that be good? Probably not from the vocal minority of unhappy workers. I bring this up not to be gloomy but to warn board members and managers about careful documentation, especially in official stuff like your employee handbook. Recent decisions, based on employee rights to complain directly to customers, and bash your company on 92
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social media, is alarming for private clubs. We’ve always had an approach that, in private clubs it was verboten to complain to members. In a recent Report of the General Counsel, memo GC 154, the bottom line is, be careful what you have printed in the handbooks. It could be a problem. “This report presents recent case developments arising in the context of employee handbook rules. Although I believe that most employers do not draft their employee handbooks with the object of prohibiting or restricting conduct protected by the National Labor Relations Act, the law does not allow even well-intentioned rules that would inhibit employees from engaging in activities protected by the Act. “Moreover, the Office of the General Counsel continues to receive meritorious charges alleging unlawful handbook rules. I am publishing this report to offer guidance on my views of this evolving area of labor law, with the hope that it will help employers to review their handbooks and other rules, and conform them, if necessary, to ensure that they are lawful.” I know, exciting stuff. But my point is to not only warn private clubs to clean up their handbooks, but to suggest that you also train your managers to watch for this behavior. Many clubs have the long-term endeared staff that have close relationships with members. I recall a locker room staff person in a long-ago past club, who had the ear of the golfing power group in the club. The stuff he would feed that group was not only baloney, but also dangerous to peoples’ careers and livelihood. End game: we are really lucky in clubs that our staffs are generally, mostly happy. Programming to keep them that way, happy, healthy and engaged, as well as informed, all add to that happiness. Check your documentations to be careful, but focus on the majority of your staff that really DOES love working at the club. They’re the ones who deserve the attention. Lead ON! BR
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Architects | planners | Interior Designers 44 North Main street south Norwalk, CT 06854 p: 203.354.5210 www.rm-arch.com
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BOARDROOM MAGAZINE ADVERTISING INDEX ACCp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Addison law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Ambassador uniform. . . . . . . . . . . . . . . . . . . . . . 43 Big John Grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Bozeman Club & Corporate Interiors. . . . . . . . . 57 C2 limited Design. . . . . . . . . . . . . . . . . . . . . . . . . 47 Chambers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 ClubTec/Clubster. . . . . . . . . . . . . . . . . . . . . . . 28-29 Clubwise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Cornilleau usA. . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Creative Golf Marketing . . . . . . . . . . . . . . . . . . . . 8 Daniel paul chairs. . . . . . . . . . . . . . . . . . . . . . . . . 13 Denehy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Distinguished Club. . . . . . . . . . . . . . . . . . . . . 82-83 eustis Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Flora springs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 FooD-TRAK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 GCsAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Golf Insurance from epic. . . . . . . . . . . . . . . . . . . 87 Golf Maintenance solutions. . . . . . . . . . . . . . . . 89 Grigg. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 GsI executive search . . . . . . . . . . . . . . . . . . . . . . 69 High end uniforms. . . . . . . . . . . . . . . . . . . . . . . . 85 HINT | Harris Interiors. . . . . . . . . . . . . . . . . . . . . . 31 Judd Brown Designs. . . . . . . . . . . . . . . . . . . . . . . 53 Kempersports. . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Kopplin Kuebler & Wallace. . . . . . . . . . . . . . . . . 23 lichten Craig Architecture + Interiors. . . . . . . 69 louis Tyler Creative services. . . . . . . . . . . . . . . . . 6 MAI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
McMahon Group. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Northstar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 parBar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 peacock + lewis. . . . . . . . . . . . . . . . . . . . . . . . . . 67 pGA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 polar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Rogers McCagg. . . . . . . . . . . . . . . . . . . . . . . . . . . 43 RsM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 slimfold Grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 something Different. . . . . . . . . . . . . . . . . . . . . . 65 sports solutions. . . . . . . . . . . . . . . . . . . . . . . . . . 57 TeZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Welch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 uspTA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 XHIBTZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 & 41
BOARDROOM MAGAZINE COUNTRY CLUB INDEX linda Adamany, president, Kensington Golf & Country Club, Naples, Fl executive Chef Jay Alfes, Venice Golf & Country Club, Venice, Fl
Dr. Bonnie Knutson, the Country Club of lansing and The Michigan Athletic Club
Chris Boettcher, CCM, CCe, GM/Coo, Burlingame Country Club near san Francisco, CA
David Krzywonos, GM, Kensington Golf & Country Club, Naples, Fl
Kathleen Boyce, president, Wellesley Country Club, Wellesley Hills, MA Brad Cance, GM/Coo, Bethesda Country Club, Bethesda, MD
Matthew linderman, newly appointed GM, Boca West Country Club, Boca Raton, Fl
Chef Dan Chagolla, Desert Highlands, scottsdale, AZ
Jimmy lynn, GM, Wyndemere Country Club, Naples, Fl
Jim Corcoran, GM, Mountain Ridge Country Club, West Caldwell, NJ
eben Molloy, GM, Woodfield Country Club, Boca Raton, Fl
Frank Cordeiro, GM/Coo, Diablo Country Club, Diablo, CA
Brett Morris, GM, The polo Club of Boca Raton, Boca Raton, Fl
Addison Craig, golf instructor, Jim Mclean Golf school at Trump National Doral, Miami, Fl and golf professional, The Bridge Golf Club at Bridgehampton, Ny
MacDonald Niven, MA, CCM, CCe, GM, Almaden Golf and Country Club, san Jose, CA
Rob DeMore, senior vice president, operations, Troon privé
Mitchell s. platt, GM, Cosmos Club, Washington, DC
Jay Dipietro, outgoing president/Coo, Boca West Country Club, Boca Raton, Fl
Marty Ryan, GM, Wellesley Country Club, Wellesley Hills, MA
Ken Donovan, president, Fiddler’s elbow Country Club, Bedminster, NJ
Jim schell, GM, Venice Golf & Country Club, Venice, Fl
Todd Dufek, locker room manager, The Country Club at DC Ranch, scottsdale, AZ
Robert A sereci, CCM, GM/Coo, Medinah Country Club, Medinah, Il
Nancy levenburg, member, spring lake Country Club, spring lake, MI
elaine patterson, member, The Beach Club of santa Monica, CA
Jim sargent, Assistant GM, Town & Country Club, saint paul, MN
John Fanburg, president, Mountain Ridge Country Club, West Caldwell, NJ
Rosie slocum, MCMp, director of membership, BallenIsles Country Club, palm Beach Gardens, Fl
Jason Hazley, head tennis professional, New orleans lawn Tennis Club, New orleans, lA
Terra Waldron, Coo, Desert Highlands, scottsdale, AZ
Chef David Hoffman, Town & Country Club, saint paul, MN
Trump National Golf Club, Jupiter, Fl
Tom Hurley, GM, Fiddler’s elbow Country Club, Bedminster, NJ MARCH/ApRIl 2017 | BOARDROOM
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Leaders in F&B Innovation
MICHAEL S. WHEELER, CCE, CCM
MATT MCKINNEY, CCM
JAY DIPIETRO, CCM
ROBERT E. JONES, CCM, CCE
MICHAEL G. LEEMHUIS, CCM, CCE, PGA
COO and General Manager Cherokee Town & Country Club Atlanta, GA
COO and General Manager Capital City Club Atlanta, GA
President and General Manager Boca West Country Club Boca Raton, FL
COO and General Manager Desert Mountain Club Scottsdale, AZ
President Ocean Reef Club Key Largo, FL
CRAIG L. LOPES
BRAD JENCKS
NICK SIDORAKIS, CCM
PHIL KIESTER, CCM
BRETT MORRIS
General Manager The Moorings Yacht & Country Club Vero Beach, FL
General Manager Waialae Country Club Honolulu, HI
COO and General Manager Southern Hills Country Club Tulsa, OK
General Manager The Country Club of Virginia Richmond, VA
COO and General Manager Polo Club of Boca Raton Boca Raton, FL
Innovation is a key component of leadership. These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together. The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.
Find out more. Call us at 800-553-2438. Or just ask them!
FOOD AND BEVERAGE MANAGEMENT SYSTEM
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Th e Bo a rd Ro o m ma ga zin e
CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 269
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VOLUME XXI MARCH/APRIL
Vo lume XXI, Ma rch /A p ril 2017
10 | PUBLISHER’S PERSPECTIVE 26 | LIFETIME ACHIEVEMENT 36 | BOARDROOM AWARDS 86 | TRIBAL MAGIC
The Private Club Industry and Affiliated Associations