The BoardRoom magazine
CELEBR ATING 22 YEARS OF EDUC ATING THE PRIVATE CLUB INDUSTRY ISSUE 275
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VOLUME XXII MARCH/APRIL
Volume XXII, Marc h /Apr il 2 018
The Importance of Your Board Member’s Education - P20 PICTURED L-R, TOP TO BOTTOM: DAN FARRELL, JOHN G. FORNARO, PHILIP HARVEY, RICHARD KOPPLIN, JERRY MCCOY, JEFF MORGAN, ROBYN STOWELL, MICHELLE TANZER AND GORDON WELCH
10 | PUBLISHER’S PERSPECTIVE
58-59 | TOP PRIVATE CLUB PRESIDENTS
SHOULD THE BOARD RUN YOUR PRIVATE CLUB?
54 | ON THE FRONTLINES MAINTAINING CONFIDENTIALITY
76-79 | INNOVATIVE IDEAS BOCA WEST COUNTRY CLUB, CHAMPIONS RUN COUNTRY CLUB, HENDERSONVILLE COUNTRY CLUB, AND PHILADELPHIA COUNTRY CLUB
DAVE WHITE
EDITOR’S NOTE
Dave White is the editor of BoardRoom magazine. If you have comments on this article or suggestions for other topics, please send Dave an email to: dave@boardroommag.com.
Board Education Is a Must “There is no other business like a country club. That’s one of today’s biggest issues.”
So says Gordon Welch, president of the Association of Private Club Directors (APCD), and it pretty much sums up the need for the right kind of educational program for private club boards of directors. In recent years the impetus for education has focused on private club general managers, CEOs and chief operating officers, and generally, it’s been a really successful push. However, there’s really a gap in educational programs available for private club board members, and that’s why the focus on education for board members in this issue’s cover story package. Make no mistake, a private club’s success is tied directly to the quality of the club’s board of directors. Clubs today need an informed, educated, dedicated and focused board of directors, and that starts even before the board sits down for its first meeting after club elections. A board’s stewardship process starts before a director is voted into office…and that’s because it must start during the club’s nominating process for prospective board members. There’s a need to have a well defined and developed process that ensures the ‘best’ candidates with the proper motives and skill sets are on the ballot for your directors’ positions…more likely we can call a ‘qualified ballot.’ Once this happens, members can then select new directors from the best of their peers to represent them. It also follows that integration into the board’s activities is key to creating an environment for new board members to be successful and truly contribute to the long-range health and wealth of the club. This means at the least, a yearly orientation exposing board members to the structures, systems, policies and procedures and the club’s institutional memory so that all directors are able to assimilate and contribute in a much shorter time period. And there’s much to be said for diversity contributing to development and maintenance of a strong productive board of directors. Board members from all walks of life and industry often are very beneficial to a club because the differing viewpoints generally lead clubs in a more positive direction. There’s also a need for a synergistic relationship with the general manager and the leadership (the board) team. 4
BOARDROOM | MARCH/APRIL 2018
There’s a need to articulate policies, roles and responsibilities but these must flow from a beneficial relationship between the GM and the board of directors. So, the question is: How can the board improve its relationship with the general manager to make it more productive? It’s certainly a matter of a vital and viable communication process and trust… a strong trust relationship with the board. For this to evolve a number of things must happen… including a clarification of roles and responsibilities. That’s the focus of our cover stories and the need for a strong educational program that available for a club’s board of directors. Boards must fully understand the club’s culture, its core values, the club’s mission and vision, and long-range strategic plan, and what that long-range plan means – a continuing commitment from the club’s board. Board members must be leaders, not interventionists, or second guessers. And accountability is key…it’s the responsibility of each board chair to make sure board members execute on their pledges. And that leads us to the education process for board members. Welch, in our cover story, The Importance of Your Board Member’s Education, says: “Board members must be educated about the 501(c) (7) organization. APCD believes that effective board leadership and governance requires an ongoing commitment to board development and to a healthy board / staff relationship. We work to effect positive change with club boards and their committees through collaborative governance,” Welch elaborated. For more about your board’s education and BoardRoom Institute, our educational arm, delve into the thoughts and opinions in our cover story package. It’s food for thought … and action!
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And we begin another look at BoardRoom’s Top Presidents…for 2017. This issue features stories about Jeff Benton, President, River Bend Golf & Country Club, Great Falls, VA; Tom Brunts, President, Country Club at Castle Pines, Castle Pines, CO; Cleve Christophe, President, The Thornblade Club, Greer, SC, and Rocco Diina, President, The Buffalo Club, Buffalo, NY. BR
Publisher/CEO
Co-Founder/CEO
John G. Fornaro
John G. Fornaro
Editor/Co-Publisher
President
Dave White
Keith Jarrett
Assoc. Editor/VP Creative/Co-Publisher
Chief Analyst
Heather Arias de Cordoba
Frank Gore
APCD Executive Director
Chief Information Officer
Bill Thomas
Jeff Briggs
Editorial & Marketing Director
Executive Director
Dee Kaplan
Bill Thomas
Accounting
Business Development Manager
Susan Giem
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Contact Information
Contact Information
www.BoardRoomMagazine.com www.apcd.com (949) 376-8889 or (949) 365-6966
www.DistinguishedClubs.com (949) 376-8889
Subscriptions and Website Heather Arias de Cordoba www.BoardRoomMagazine.com (949) 365-6966
Featured Columnists Rick Coyne John G. Fornaro Bonnie J. Knutson Nancy M. Levenburg Sam Lindsley
Phil Newman Gregg Patterson Whitney Reid Pennell Bill Schwartz Robert Sereci
Tammy Tassitano Tom Wallace Dave White
Brent Hildreth Anne Kaufman David W. Lacey Rick Ladendorf Melissa Low Jimmy Lynn Richard McPhail Macdonald Niven
Mike Phelps Ted Robinson Steve Schendel Meghan Thibault Michelle Tanzer Bryan Webb Ned Welc Gordon Welch
Contributing Writers Chris Boettcher Caleb Christopher Ronald F. Cichy Molly Cox Dave Doherty Todd Dufek Susan Greene Rob Harris
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 275 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.
CO N T E N T S | M A RC H /A P R I L 201 8
PUBLISHER’S PERSPECTIVE | 10
CASE STUDY | 12
EXECUTIVE COMMITTEE | 14
SHOULD THE BOARD RUN YOUR CLUB?
CONSISTENCY PAYS DIVIDENDS
EMPLOYEES CHOOSE, STAY OR LEAVE?
BY JOHN G. FORNARO
BY RICK COYNE
BY WHITNEY REID PENNELL
Some clubs have chosen to fire their GM, after which some boards of directors have made the decision to not hire a new GM, preferring instead to have the board run the club. Operating with a decentralized governance system goes back eons, whereby there was likely a three-legged stool model – with a clubhouse manager, a green superintendent and a golf pro.
Whether it’s having a vision, a strategic plan or standard operating procedures, consistency makes a difference. How many clubs change their vision every three years? How many strategic plans are relegated to dust-collecting shelf space and how many standard operating systems are in the dark ages? I think there’s agreement that it happens all too often.
As of April 2017, the U.S. Bureau of Labor Statistics estimates there were over 847,000 job openings in the leisure/hospitality industry, and that number is increasing. Turnover leads to lost productivity and a decrease in institutional knowledge, reducing efficiency and that priceless personalized knowledge of members – all of which can have a distressing impact on a club’s membership.
FOOD FOR THOUGHT | 16
CLUB FACTS & FIGURES | 18
PLIGHTS AND INSIGHTS | 43
TO REDUCE F&B SUBSIDIES FOCUS ON LOSS PREVENTION, NOT VOLUME
INITIATION FEES AND THE NEW REVENUE RECOGNITION GUIDANCE
AIN’T MISBEHAVIN’
BY BILL SCHWARTZ
BY P H I L N E W M A N & TA M M Y TASS I TA N O
What if, instead of trying to increase top line food and beverage revenue to reduce subsidies, the focus was shifted to reducing losses instead? Consider a club doing $1 million in F&B revenue with a 50 percent food cost that requires a $50,000 annual subsidy. That club loses a nickel on every dollar of revenue…
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers. Beginning after 12/15/18, the standard will replace almost all pre-existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles.
“Ain’t Misbehavin”, the title of a song written by Fats Waller in 1929, has been recorded by artists like Louis Armstrong, Ella Fitzgerald, Bing Crosby, Billie Holliday, Sarah Vaughn, Miles Davis, and more. Ain’t Misbehavin’ is also how we all hope that private club members treat their fellow members, the course and the game of golf, and club employees.
MEMBERSHIP MUS INGS | 52
BOARDROOM BASICS & BEYOND | 70
TRIBAL MAGIC | 82
BRING BACK THE OLD ALKA SELTZER TUBES
THE KEY PRINCIPLES OF TEAM DEVELOPMENT - PART II
CREATING A CERTIFIED SUPERVISOR PROGRAM - PART I
BY BONNIE J. KNUTSON
BY TOM WALL ACE & SAM LINDSLEY
BY GREGG PATTERSON
My husband and I were married when we were 19 and still in college. Like many young couples of our era, managing school, two jobs, and family didn’t leave a lot of discretionary time nor money. Some of you may remember the old Alka Seltzer containers. The diameter was just big enough to let a quarter slide down inside, stacking one on top of the other until the tube was full.
Why is it some clubs seem to consistently attract and retain the ‘best and the brightest’ talent in all levels of the operation, while others seem to be in ‘always hiring’ mode? There are key proven team engagement, development and mentoring principles that can help you attract, enhance and retain your top employees.
We who manage are in the business of identifying, developing and stimulating the upwardly mobile, the talented ones — people who, through the exercise of their talents, make our clubs flourish. Many of these talented ones, the upwardly mobile, want to become the supervisor. They want the status, the money and the big shoulders needed to make things happen.
BY NANCY M. LEVENBURG
Hold the Phone! Introducing FOOD-TRAK® Mobile App
The newest addition to the award-winning FOOD-TRAK System’s mobility platforms. With the FOOD-TRAK Mobile App (FMA) for Android or Apple devices, our clients eliminate printing, filling out and entering data from paper forms. Collect data where it lives, or look up information from wherever you are. Mobility equals efficiency! FMA Features Include: 3 3 3
Take Inventory
3
Create Requisitions
3
Receive Goods
3
Record Transfers View Recipes Track Waste
Use your device’s built-in camera to scan barcodes, saving time and improving accuracy for all types of data collection. Print routing slips, invoice reconciliation reports and recipe right from the device to your network printers.
Join the leaders in the club industry who use the FOOD-TRAK System to manage and control their F&B costs and reduce or eliminate subsidies. Easily affordable and suitable for clubs of all sizes.
So leave your desk, hold the phone and call your FOOD-TRAK Account Manager at 800-553-2438 for more information.
FOOD AND BEVERAGE MANAGEMENT SYSTEM
PROCUREMENT • INVENTORY • CULINARY CONTROL
WWW.FOODTRAK.COM
JAY DIPIETRO VENDOR OF THE YEAR
2012 - 2017
SECTIONS
DEPARTMENTS ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 20
ON THE FRONTLINES. . . . . . . . . . . . . . 46
Do You Pass the General Manager Fit Factor Test?
The Importance of Your Board Member’s Education By Dave White
By Ned Welc
ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 26
Setting Up Your Board for Success: BoardRoom Institute is the Answer!
CASE STUDY . . . . . . . . . . . . . . . . . . . . . 48
A New Level of Casual Dining – Vacation Style
By Dave White
By Bryan Webb
PGA: EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
PGA Of America Introduces Enhanced Career Services
ON THE FRONTLINES . . . . . . . . . . . . . . 54
Maintaining Confidentiality What Would You Do?
ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 62
By Macdonald Niven
Seven Deadly Sins of Club Governance By Gordon Welch
LEADERSHIP MOMENTUM . . . . . . . . . 74
Turning Photographs into Visions Becoming Comfortable with the Unknown - Part I
GOLF DISPUTE RESOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Court Rejects Neighbors’ Attempt To Hold Golf Course Liable For Flooding By Rob Harris
By Robert Sereci
INNOVATIVE IDEAS . . . . . . . . . . . . . . . 76
Boca West Country Club
By Meghan Thibault
COMMITTEES
INNOVATIVE IDEAS. . . . . . . . . . . . . . . . 77
Philadelphia Country Club By Meghan Thibault
INNOVATIVE IDEAS . . . . . . . . . . . . . . . 78
Champions Run Country Club By Meghan Thibault
EXECUTIVE COMMITTEE . . . . . . . . . . . 32
Never Address the Bored By Molly Cox
EXECUTIVE COMMITTEE . . . . . . . . . . . 40
LEGAL COMMITTEE . . . . . . . . . . . . . . . 66
By Susan Greene
By Anne Kaufman
New Member Orientation Isn’t Just for New Members
EXECUTIVE COMMITTEE . . . . . . . . . . . 34
Ready to Build a Bright Future for Your Club? By Brent Hildreth
EXECUTIVE COMMITTEE . . . . . . . . . . . 42
Who and What Is the iGEN? Part I By Ronald F. Cichy
INNOVATIVE IDEAS . . . . . . . . . . . . . . . 79
Hendersonville Country Club By Meghan Thibault
CLUB SERVICE. . . . . . . . . . . . . . . . . . . . 90
At What Stage Is Your Manager? By Chris Boettcher
Legal Implications of Members Behaving Badly
HOUSE COMMITTEE. . . . . . . . . . . . . . . 36
Does Your Board Understand What Your Members Want? By Todd Dufek
GREEN COMMITTEE. . . . . . . . . . . . . . . 50
Bad Guy Gasses
By Dave Doherty GREEN COMMITTEE . . . . . . . . . . . . . . . 51
EXECUTIVE COMMITTEE . . . . . . . . . . . 38
The Elephant in the Club, Part I By Richard McPhail
Labor: A Time – And Need – For Change By Steve Schendel
LEGAL COMMITTEE . . . . . . . . . . . . . . . 67
Sexual Harassment Is it a Topic “Too Hot” for the Boardroom? By Michelle Tanzer
MEMBERSHIP COMMITTEE . . . . . . . . 68
How to Get Fewer Leads, But Better Leads By Mike Phelps
MEMBERSHIP COMMITTEE . . . . . . . . 69
When You Need a New Idea By Ted Robinson
TECHNOLOGY COMMITTEE. . . . . . . . . 56
Cybersecurity Series, Part II By Caleb Christopher
LEGISLATIVE COMMITTEE. . . . . . . . . . 60
FEATURE . . . . . . . . . . . . . . . . . 44
BoardRoom magazine Excellence in Achievement Awards
Legislative and Regulatory Update By Melissa Low
HR COMMITTEE . . . . . . . . . . . . . . . . . . 80
Balancing– A Key Factor to Consider When Viewing the Effects of ACA on Clubs By David W. Lacey
PLANNING COMMITTEE. . . . . . . . . . . . 91 WELLNESS COMMITTEE . . . . . . . . . . . 64
Three Reasons to Form a Wellness Committee
Is Your Club Focused on Sustainability? By Jimmy Lynn
By Rick Ladendorf
FEATURE . . . . . . . . . . . . . . . . . 58
BoardRoom magazine Top Private Club Presidents
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
Should the Board Run Your Private Club? Some clubs have chosen to fire their GM, after which some boards of directors have made the decision to not hire a new GM, preferring instead to have the board run the club.
This isn’t new, and I don’t believe many boards and board members are even aware that once upon a time most boards operated their clubs. Operating with a decentralized governance system goes back eons, whereby there was likely a three-legged stool model – with a clubhouse manager, a green superintendent and a golf pro. It might even have been expanded with the addition of a tennis pro, a fitness specialist, an executive chef and whomever else reporting directly to the board of directors or at least, a committee chair. However, the complexity of running a private club, as a small business, requires many competencies not found in the three-legged stool model. That has led to the evolution of club governance, and today the widely-accepted general manager/ chief operating officer concept that leaves the board free to establish policy while the general manager handles the day-to-day operations. Still some boards have made a decision to run the club because of money (salary of GM) and a belief they can a do a better job. Perhaps more widespread than we’d like to believe. Why does this happen? “Some clubs call on board management as an economic solution,” explained Henry DeLozier, principle with Global Golf Advisors. “It’s is often driven by dedicated and conscientious board members who are attempting to find what seem to be cost-effective solutions for their clubs. It’s an indication usually of a club that it is financially unfit. “Board management is a desperate solution to club management. At its foundation is the assumption that unproven and inexperienced management - regardless of the success that an individual has had in other professions - is a more favorable solution than finding and hiring an experienced and trained club manager. It is a flawed solution in most cases,” he added. There might be some positives, but in DeLozier’s opinion, there certainly are negatives. “The positives are (a) reduced labor costs (b) imposed learning of operational requirements for board members, and (c) increased board involvement,” said DeLozier. But the negatives are (a) decreased performance results (b) staff attrition
as staff members wonder “who will be eliminated next”, (c) declining member satisfaction, (d) increasing disenchantment of board members who are unpaid and untrained workers, and (e) diminished financial results because of amateur managers not knowing the business nuances.” Whitney Reid Pennell, principle with the RCS Hospitality Group, agrees that clubs follow the path of a board-run club “for financial reasons or they are smaller clubs who need expertise in those three areas specifically, and then simply cannot afford a general manager because of their membership size and subsequent dues. I’ve also seen some clubs with a GM who is also the director of golf or a GM/superintendent combination. “Unfortunately, the lack of professional management (or one clear leader) often ends up costing a club much more within about 18 – 24 months. It doesn’t take long for inconsistent decisions or lack of one leader to show up in a club,” Reid Pennell suggested. “We see a decrease in usage and increase in cost of sales, labor and other expenses. The lack of professional management also places focus in/on the wrong areas/items. This leads to a sharp decline in membership and usage, causing the board to either invest back into the club with professional management or suffer through what we affectionately call the ‘death spiral.’ “Another reason we see this is because new board members - if allowed or encouraged - are drawn to operational decisions like a moth to a flame. Operations are where the action is and that’s exciting and seemingly a place that they, as new board members, can make an impact if the decision is well received,” Reid Pennell opined. ARMCHAIR QUARTERBACKS “Many new board members have not yet learned the club governance structure or the unique business model of clubs, so they gravitate toward operations and get tactical. It’s the armchair quarterback approach – someone who doesn’t participate in the day-to-day action but still makes judgments about it and thinks they can do it better,” Reid Pennell expressed. Part of this, the RCS executive suggested, comes from the fact that watching from outside, it seems so simple to manage a club and run it like the business they, as successful business leaders, know. SEE PUBLISHER’S PERSPECTIVE | 86
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RICK COYNE Rick Coyne is CEO of Club Mark Corporation. He can be reached via email at rcoyne@clubmark.com.
CASE STUDY
Consistency Pays Dividends Whether it’s having a vision, a strategic plan or standard operating procedures, consistency makes a difference.
How many clubs change their vision every three years? How many strategic plans are relegated to dust-collecting shelf space and how many standard operating systems are in the dark ages? I think there’s agreement that it happens all too often. To understand consistency, what businesses must strive for is a combination of efforts that will give them the best possible results. To most, this starts with a consistent overview of all things that affect the outcomes of the business. For the private club these things include a number of things that we call due diligence. For example, is the business growing? For clubs this translates into several things. Is membership growing without the necessity to discount? Is your attrition rate within reason? If not, what are the threats and opportunities.
• Where do your members come from, how far away, and is there a correlation of the distance they live from the club and how often they use the club? • In that same space that your members come from now, how many additional households could afford membership at the club? How many would be golfers or tennis players? • How do you look at your competition? If it’s price alone, your measurement will be flawed. Create a 10-point list of accoutrements, including price, location, amenities, etc. and rate your club on a three-point scale, three being the best. Overlay the competition onto your grid. Where do you excel and where do you fall behind? • Look at age segmentation of your membership? How many do you have over 75? How many do you have under age 45? Compare your membership age to a 15-minute drive. Does your membership proportion to the 15minute drive?
The due diligence list goes on and on, and with it can go consistent, informed, data-driven decision making that can fuel your strategic plan, become part of the annual training of new incoming members and drive unbiased thinking for all stakeholders. For most of my career in the club industry I’ve been devoted to finding the underlying issues that affect a club’s success or failure. My findings have concluded that those clubs that exist in highly dense areas of wealth, with little competition, may do pretty much whatever they want and still be successful. It’s the rest of the clubs that need to better understand that the road to success can be very, very predictable. That is, assuming of course, that there is a plan to understand exactly what may be causing your problems. More than any time before, clubs are facing challenges from cultural changes including time constraints, family needs, gender needs, generational needs and the need to have greater opportunities within the club to appease these increasingly diverse lifestyles. But before taking on change, would it not be better to fully understand the club’s situation. Here’s a short list of things a free-standing club can do to spot issues and make appropriate changes. 12
BOARDROOM | MARCH/APRIL 2018
• Ask your members, by age, what was the most important thing about the club that caused them to make application. Is there a difference that you see in the less tenured and younger members than that of your older members? What is the demographic of members joining over the past five years? On so many levels, this information constitutes a highyield gold mine. The due diligence list goes on and on, and with it can go consistent, informed, data-driven decision making that can fuel your strategic plan, become part of the annual training of new incoming members and drive unbiased thinking for all stakeholders. The downside to not understanding core issues is that you never actually solve the problem. Your club’s issues are predictable and easily within your grasp to solve. As more and more clubs are realizing this reality, the industry is evolving some very creative and innovative thinkers and managers. Are you ready to join? BR
WHITNEY REID PENNELL
EXECUTIVE COMMITTEE
Whitney Reid Pennell, president of RCS Hospitality Group, formerly Reid Consulting Services (RCS) is a celebrated management consultant, educator, and speaker. For more information, phone (623) 322-0773; or visit the RCS website at www.consultingRCS.com
Why Do Employees Choose, Stay or Leave? The labor shortage in the hospitality industry is well documented and endlessly discussed, making employee retention more important than ever for private clubs.
Hospitality positions account for one of every 10 jobs worldwide or about 14 million jobs in the United States. As of April 2017, the U.S. Bureau of Labor Statistics estimates there were over 847,000 job openings in the leisure/hospitality industry, and that number is increasing. Turnover leads to lost productivity and a decrease in institutional knowledge, reducing efficiency and that priceless personalized knowledge of members – all of which can have a distressing impact on a club’s membership. While some studies are quick to blame Millennials for turnover, this is more likely a developing trend of the future workforce. Millennials are the demographic group least likely to stay in hospitality over the next five years. They cite reasons such as no task variety, little opportunity for development and quick promotion, and a workplace culture lacking energy and enthusiasm. A recent Gallup Poll noted that Millennials “are not pursuing job satisfaction; they are pursuing development.” The quality of a club is only as good as its people. If a club is unable to meet its staffing needs with quality employees, the service excellence, operational efficacy, and opportunities for growth will be crushed. This leads to increased member dissatisfaction and possibly even member turnover. Most club leaders understand the impact of membership turnover, yet few really focus on employee retention, attraction, and development as part of their strategic plan. Just like your members, do you know what makes employees choose your club? Do you know why they stay? And ultimately, why they leave? Here are a few best practices: CHOOSE
The U.S. Department of Labor estimates that the cost of a bad hire is at least 30 percent of their first-year earnings. Some estimates are as high as 60 percent. Clearly hiring right is critical on many levels. To do that: • Provide a realistic job preview to the interviewee. • Consider using personality or other candidate selection tools, which can help better match the person to the position or team. 14
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• Invest in properly training your hiring managers so they are competent and confident when interviewing and hiring candidates. STAY
• Strong onboarding processes increase retention by 82 percent and productivity by 70 percent, according to Brandon Hall Group Research. When did you last review your onboarding process step by step? If it consists primarily of an employee handbook, a training manual, and a club tour, there may be room for improvement. • Socialization within the first 10 days on the job helps new hires become acclimated to the company culture and embedded in their team. What kind of team building activities do you have in place? • Provide training and development opportunities as part of your culture. This is different than a one-day orientation or two weeks of new hire training. Abundant training opportunities discourage turnover because employees feel more satisfied and engaged when they’re well positioned for future growth and promotion. • Seek ways to create a motivating work environment across generations. • Conduct a ‘stay’ interview, rather than an ‘exit’ interview. LEAVE
Allow exiting employees an opportunity to provide anonymous feedback on why they are leaving. After all if the interviewer themselves is one of the reasons, the employee is not likely to state that in person to avoid conflict or future retaliation with a reference check. In addition to these best practices, competitive compensation, the right rewards, and effective leaders also contribute to healthy employee retention. However, turnover is not always about pay as some believe. Sometimes, it is symptomatic of deeper issues such as lack of recognition, inconsistent messages from management, lack of tools or resources, or poor manager/employee relationships. Taking the time to understand why your employees choose you, stay with you, or leave you will provide valuable insights for your employee retention strategies. BR
BILL SCHWARTZ
FOOD FOR THOUGHT
Bill Schwartz is the founder and CEO of System Concepts, Inc. (SCI). Based in Scottsdale AZ, SCI is a food and beverage procurement and inventory management consulting firm and the developer of the FOOD-TRAK System, which is widely used in club operations around the country. Bill can be reached at (480)951-8011 or bills@foodtrak.com
To Reduce F&B Subsidies
Focus On Loss Prevention, Not Volume Cost reduction falls directly to the bottom line … increased revenue doesn’t. What if, instead of trying to increase top line food and beverage revenue to reduce subsidies, the focus was shifted to reducing losses instead? Sorry about the math to follow, but it is required to make the point.
Consider a club doing $1 million in F&B revenue with a 50 percent food cost that requires a $50,000 annual subsidy. That club loses a nickel on every dollar of revenue. Since $.50 of every dollar goes to food cost, another $.55 goes to labor and overhead. Assuming food at 50 percent and labor at 35 percent of revenue, only $.20 per dollar of sales contributes to subsidy reduction with any volume increase. Under those circumstances, it would take an increase of $250,000 in revenue (25 percent) to clear the subsidy. On the other hand, reducing unnecessary food costs by one percentage point (for example, reducing food cost from 50 to 49 percent of sales), would save one percent of revenues – or in our example $10,000. Reducing the food cost from 50 to 45 percent, eliminates the subsidy entirely without the need to increase revenues at all. What if it was possible to take actions that have exactly the same impact on subsidies as significant increases in volume would have, but without the need to increase staff, buy or prepare more food, add storage or production capacity or add space to the dining areas to accommodate the new traffic? And what if it was possible to get this to happen immediately – say within 90 days? MAKING IT HAPPEN
Interestingly, most clubs can easily reduce food costs by five points simply by implementing procedures, checks and balances and systems to reduce unnecessary food and beverage misuse. Start by imagining food and liquor as piles of cash. Imagine the kitchen and storage areas are full of cash lying around. Is it secure? Could it end up in pockets or stomachs? Could it be used carelessly and end up in trash cans or drains? Could too much of it end up on a guest’s plate? Could the vendor be delivering a different amount than on the invoice every now and then? If this was cash, there would be checks and balances up the wazoo! But since it’s just food – little or no attention is 16
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paid. And that’s where the five percent goes. Imagine what the losses would be if cash in the club was treated like food? Still not convinced? Dump the trash on the floor and assign a value to it. Try to determine how much of the “cash in the trash” didn’t need to be there. Like things that didn’t need to be trimmed as much, and things that were burnt or overcooked or over-prepped. How about things that didn’t belong in there at all, like flatware and china and ramekins? Then take the amount of unnecessary cash in the trash and extend it out over the entire operation for a year. By itself, the cash in the trash could add up to five points. IT’S TIME FOR ACTION!
It doesn’t cost much to shift the focus to F&B control. Instituting a purchase order requirement, better receiving practices, focusing on yield as opposed to speed for prep, monitoring inventory levels and taking frequent inventories to reduce spoilage and improve ordering are all things clubs can implement at virtually no cost – and with significant upsides. Along with these disciplines, F&B management systems complete the picture. It’s important to note that systems focusing primarily on inventory, recipes and procurement do not help reduce food costs associated with misuse. Only systems that handle complex F&B procurement and incorporate extremely strong, integrated culinary controls can help deliver these savings. Of course, proper implementation is the key to success with these systems, which typically involves some up-front professional services fees. However, with today’s cloudbased hosted solutions, operators can forgo the need to purchase software licenses and related computer equipment. Finally, getting the staff to participate with any new approach can be a challenge. Introducing a system that offers mobility is a game changer in this regard. The ability to use scanners, iPads and smartphone apps to take inventory, receive goods, do transfers and requisitions and even view recipes from the line, not only reduces the time and increases the accuracy associated with data collection or food production. But it encourages a team effort and can actually be fun. BR
PHIL NEWMAN
TAMMY TASSITANO
CLUB FACTS & FIGURES
Winter Is Here
Initiation Fees and the New Revenue Recognition Guidance In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers – commonly referred to as Accounting Standards Codification (ASC) 606.
Upon its effective date, which for most private clubs will be their first fiscal year beginning after December 15, 2018, the standard will replace almost all pre-existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. Given the wide-reaching impact of the new guidance and with the deadline for implementation fast approaching, private clubs should be reviewing how adoption of ASC 606 might impact them. A good place to start is with some key definitions, namely those for “revenue” and “customer.” Revenue is defined as: “Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations.” In the case of most member-owned clubs, the vast majority of transactions with members are expected to meet this definition of revenue, including the payment of membership dues, payments for food and beverage products and payments for golf and other sporting activities. Upon evaluation of such revenue transactions, clubs may find that applying the ASC 606 five-step revenue recognition model will not significantly change how they currently recognize revenue for these types of transactions. There are, however, significant membership transactions that member-owned private clubs will need to review further to determine whether they are revenue transactions (and subject to ASC 606) or ownership transactions or a combination of an ownership and revenue transaction. These include primarily initiation fees, which are sometimes referred to as entrance or joining fees. At this juncture in their analysis, clubs may want to review the definition of customer in ASC 606 and consider whether initiation fees are considered transactions with a customer (revenue transactions) or ownership transactions. If a club has determined that certain initiation fees are being received from members in their capacity as owners rather than customers, such amounts would be considered synonymous with contributions of capital from owners and would 18
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not fall within the scope of the new revenue recognition guidance. An ownership interest in a member-owned private club is typically evidenced in a number of ways, and to varying degrees. Member-owned private clubs typically have more than one form of membership or more than one type of membership category, each offering different rights or benefits to the members in that category. Given this, a question arises as to how a member-owned private club determines whether members are acting in their capacity as customers or owners. Clubs should evaluate to what extent their various membership categories consist of club owners. As part of this evaluation, clubs should carefully review relevant documents, such as their bylaws and membership offerings and related membership documents, to determine what has been communicated to members regarding the nature of their membership. The ASC master glossary also offers definitions of owners and customers that clubs should consider in this evaluation. In the absence of evidence of an ownership interest in the club, initiation fee transactions with members would likely be considered revenue transactions and subject to the provisions of ASC 606. Why does this matter? Consider the following excerpt from ASC 606: “In some contracts, an entity charges a customer a nonrefundable upfront fee… Examples include joining fees in health club membership contracts… In many cases, even though a nonrefundable upfront fee relates to an activity that the entity is required to undertake at or near contract inception to fulfill the contract, that activity does not result in the transfer of a promised good or service to the customer. Instead, the upfront fee is an advance payment for future goods and services, and therefore, would be recognized as revenue when those future goods or services are provided…” If clubs determine that upfront payments such as initiation fees are in fact prepayments for future goods and services rather than ownership transactions, then arguably revenue should be recognized over the period that the member is entitled to receive those goods and services (i.e. the expected length of time the person will remain a member of the club). The preceding issues could have a significant impact not only on any given club, but also the industry as a whole. For SEE LEADERSHIP MOMENTUM | 81
COVER STORY |
BY DAVE WHITE, EDITOR
THE IMPORTANCE OF
Your Board Member’s Education
As a member of your club’s board of directors, are you struggling with your club’s governance model? Do you understand the role you play on your club’s board? Are your aware of your fiduciary responsibilities as a board member… or ??
There’s an exceedingly wide gap between what many boards of directors know and what they should know about not only their club’s operation, but also about the private club industry. Why? Because, yes, many people elected to their club boards have experience as board members, but not as members of a non-profit board, the modus operando for many private clubs. And often clubs are remiss in making sure that their board members are well informed and educated about their roles as board members. What’s missing? An education program for your board of directors. So, what’s the right kind of education for your board members? “There’s really a gap in the education for board member,” suggested John Fornaro, CEO of the Association of Private Club Directors and publisher of BoardRoom magazine. “For some years now, different groups in the private club industry have been doing an increasingly excellent job of educating general managers and other private club staffers. However, it hasn’t been the same for board members.” And many others involved in the industry agree. “There is no other business like a country club. That’s one of today’s biggest issues,” explained Gordon Welch, president of the Association of Private Club Directors, the parent association of BoardRoom Institute, BoardRoom’s education arm. “Today’s board members are highly educated individuals. They run multi-million and multi-billion-dollar in20
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“Today’s board members are highly educated individuals. They run multi-million and multi-billion-dollar industries. However, often they do not run private clubs, nor do they truly understand how to manage a private club. It sounds basic, but one of the fundamental challenges that far too many board members and boards have is that they don’t have a strong understanding of their roles and responsibilities” Gordon Welch, president APCD
DAN FARRELL
JOHN G. FORNARO
PHILIP HARVEY
dustries. However, often they do not run private clubs, nor do they truly understand how to manage a private club. “It sounds basic, but one of the fundamental challenges that far too many board members and boards have is that they don’t have a strong understanding of their roles and responsibilities,” Welch stressed. “Board members and committee members “think” they understand how to run a club but without a proper introduction to the many facets of cub management and the industry they will fail and their managers will fail. “Board members must be educated about the 501(c) (7) organization. Some clubs provide an orientation or overview of the club’s operation. APCD believes that effective board leadership and governance requires an ongoing commitment to board development and to a healthy board / staff relationship. We work to effect positive change with club boards and their committees through collaborative governance,” Welch elaborated. “There’s been an increased focus in recent years on educating private club board members because club general manager/COOs and club presidents have recognized that a great club governance model needs continual review,” commented Dick Kopplin, partner with Kopplin Kuebler & Wallace, Scottsdale, AZ, one of the industry’s leading consulting firms. “Clubs are taking the selection process of future board members more seriously and are willing to commit some quality time to the education of their directors. Typically, clubs have very successful people serving on their boards but almost everyone agrees that the governance model in a private club is somewhat unique and board members benefit from a review of ‘best practices’ in the industry,” he related. “There are nuances in the operation of a club board that differ from nuances of corporate and non-profit boards,” explained Dan Farrell, principle with GSI Executive Search, specialists in recruiting placements for the private club industry. “One size doesn’t fit all, so attracting the right board candidates through a well-organized succession planning model is the first step. Orienting them is absolutely crucial as well. And a big part of that is orienting them to the vision of the board and club – and achieving comfort that they’re aligned with that,” he added. “Board education has been the priority for a decade,” expressed Jerry McCoy, principle with Clubwise, and dean of education for BoardRoom Institute.
RICHARD KOPPLIN
JERRY MCCOY
JEFF MORGAN
ROBYN STOWELL
“However, today the industry still suffers from ineffective governance on many fronts. Some of the larger clubs, with more resources and with a progressive GM/COO, have led the charge regarding board education. They have used resources such as CMAA chapter programs, conference opportunities, on-line education and published resources such as BoardRoom. “Other GMs have tried but with limited success. Still others flounder today because of the unwillingness of the leadership to embrace the need to educate themselves regarding serving on a club board. In many cases the club’s nominating committee can help by setting guidelines for nominating future directors. Obviously, getting the right people is critical to future success,” he added. “Club managers have stepped up their education over the past 10 years as the expectations of the club’s members have broadened,” explained Phil Harvey, principle at Preferred Club Program. “This has been influenced by growth trends and the changing culture of the membership and its family base. Board members must manage and represent the member family base to meet their expectations for the investment made in the club. Board members need to continue education to keep up with disciplines and trends,” he opined.
MICHELLE TANZER
GORDON WELCH
“A good board orientation includes the newly elected board members visiting every department of the club with the general manager/ COO and club president... A successful board orientation program not only allows board members to have a greater understanding of the club’s physical assets but also gives them an opportunity to know the key members of the management team. A win/win for everyone.” Richard Kopplin, partner Kopplin Kuebler & Wallace So, what is defined as a ’proper’ education for board members and how can this be achieved? “First and foremost, the members should be advised of their professional responsibility to the fellow membership,” Harvey injected. “Many board members do not realize that they are personally responsible and potentially subject to suit for their actions or lack of acting responsibly. Secondly, just because you are successful in the outside world does not support the disciplines of a non-for-profit position as a club trustee. A regimentation from senior tenured members or heads of subcommittees is best to communicate with new entrants in sharing experiences and why policy has been established.” Kopplin suggests “a good board orientation includes the newly elected board members visiting every department of the club with the general manager/COO and club president so that each department manager has the opportunity to showcase what they do all day. “Managers can explain to the new board members how their department works and also provide a thorough tour of their respective areas of the club. Many board members have told us that this tour was a real ‘eye-opener’ and allowed them to see how the club’s resources are being used to support operations. 22
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“A successful board orientation program not only allows board members to have a greater understanding of the club’s physical assets but also gives them an opportunity to know the key members of the management team. A win/win for everyone,” Kopplin expressed. “There’s a broad misconception that board orientations are a singular answer to the challenge of training and educating boards on their roles and responsibilities. While that’s very important, I’d challenge the industry by saying that an orientation is one tool in the broader approach, and that’s to first educate potential board members on the legacy of the board’s and club’s vision,” commented Farrell. “If that vision isn’t shared with new members coming onto the board, then perhaps it can potentially be changed through personal agendas. From my perspective, it’s all about getting everyone on the same page first—and then diving into orientation-related matters. “You start with the big-picture items – the mission and vision statement, then you get into more granular detail from there, with policies, procedures, issues and other considerations. The goal of orientation is to give each board member the proper foundation so they can then make the right decisions that positively impact the club over time,” Farrell added. “I’d also add that a big part of orientation is educating the board on its role in pursuing the club’s mission and vision – and that role is 100 percent policy-driven. It’s not operational. Any sound board orientation should emphasize that. “When boards focus on where garbanzo beans are positioned in the salad bar, or the height of tee box grass, that’s a misplaced focus, and a disservice to the club. “Again, I’ll say it’s deeper than just orientation. I believe it’s really about empowering a club’s nominating committee to present the proper individuals to the membership for election. What’s critical is that you get the right people on the board first – and then orient them,” Farrell stressed. McCoy signals agreement with the importance of the club’s nominating committee. “The nominating committee needs to have a clear understanding of how the club’s governance works. The committee needs a list of best practices that the board follows. They then need to meet with each potential nominee and discuss the process to ensure that the potential nominee buys into the process. “We don’t want to nominate single agenda candidates who only want to make changes based on their small constituencies. We want board members who act for the greater good of the full club,” McCoy emphasized. “Vetting potential nominees even before nominating them will certainly help. Hopefully the communities will send quality people based on that criteria. “This is where the nominating committee can have the greatest impact. The nominating committee is one of the most important and strategic committees in the club. Having the right people on
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the board is critical. Only with good accomplished people sitting around the board table can proper decisions, based on the best interests of the club happen,” McCoy expressed. What should be included in a club’s orientation process? “The proper education for a board member would begin with a good overview of the operations. APCD provides hours of easyto-use education, through BoardRoom Institute, that will enhance the club overview and give specific issues directors may face over their time in office,” outlined Welch. “Since it’s impossible to do a job well if you don’t know what the job is, all boards must take the time to ensure that every board member fully understands what’s expected and needed of them, and then hold all members accountable when they get off track. “This starts with an understanding of the fundamental legal duties of each individual board member, which include: Duty of Care — Each board member has a legal responsibility to participate actively in making decisions on behalf of the organization and to exercise his or her best judgment while doing so. Duty of Loyalty — Each board member must put the interests of the organization before their personal and professional interests when acting on behalf of the organization in a decision-making capacity. The club’s needs come first. Duty of Obedience — Board members bear the legal responsibility of ensuring that the club complies with the applicable federal, state, and local laws and adheres to its mission. “But that’s just the starting point, as boards have responsibilities that go far beyond these three legal duties,” Welch added. Knowing the board’s fiduciary responsibilities are a must. “Board orientation content should include an explanation of the board’s fiduciary duty. Board members have specific legal obligations, and each director should understand those obligations,” explained Robyn Stowell, an attorney with Sherman & Howard in Scottsdale, AZ. “In my experience, there is a strong correlation between a director’s understanding of their legal obligations and their efficient involvement in board affairs. Thus, ensuring that each director is fully informed of their duties helps protect the club and the director from liability, and it positively impacts the directors’ level of involvement and engagement.” Stowell believes directors should also be briefed on “the basics. Often I receive calls from a club president to engage my assistance on a club legal matter. I start with the basics: are you member owned, are you tax exempt, etc.? “Often, the club officer is confused about what it means to be a non-profit corporation, to be tax exempt, and whether those two mean the same thing (they do not), etc. Each director should understand what the club entity is (for example, a non-profit corporation formed under the laws of the state where it owns club facilities) and should be familiar with the club’s articles and bylaws,” Stowell added. 24
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“When I’m asked to revise a club’s bylaws, I ask to see the club’s articles of incorporation, and often, it’s a major undertaking to find the articles. On more than one occasion we have finally located the articles only to find that the club has been operating in violation of those articles,” Stowell explained. “Many of my clubs have a board ‘job description’ that is signed by each candidate before their name is put on the ballot. This informs the potential incoming board members of their roles and responsibilities. Many of the clubs I work with also have a “board code” that outlines exactly what is expected of each board member.” Harvey suggests financial and legal aspects are a good start. “Other areas to consider would be marketing, technology, and members wellness, as well as abbreviated training in the food and beverage aspects of club operations.” What is required to ensure that board members understand their responsibilities to reduce both theirs and the club’s liabilities? “An overall interest of the senior staff of the board from president on down to recognize that the balance of the trustees have the support through external sources to round out areas of concern,” Harvey explained.
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“Often, the club officer is confused about what it means to be a non-profit corporation, to be tax exempt, and whether those two mean the same thing (they do not), etc. Each director should understand what the club entity is (for example, a non-profit corporation formed under the laws of the state where it owns club facilities) and should be familiar with the club’s articles and bylaws.” Robyn Stowell, attorney Sherman & Howard
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“Today, the major threat to the member fabric of the club is within the clubhouse and not from without, as was the issue in the past. The overall treatment and wellbeing of the members and their family members, as well as third-party employees on a full or part time basis. The majority of serious claims and events are derived from these areas. “Directors & Officers coverage is the most important of all insurance coverages a club invests in, not only the amount of coverage to be considered but the quality of the covers within the policy,” Harvey intoned. “Most policies today encompass not only director-driven limits but also employment practices liability coverage. Without these covers, no club could exist for the long haul. Board members and senior management would be targets personally for their actions. This would expose them also to personal liability for their decisions or lack thereof for the club’s behalf,” Harvey added. Another industry attorney, Michelle Tanzer of GrayRobinson, a Florida firm, says, “Legal education should involve policies and procedural requirement as well as instruction on fiduciary duties.”
So can a proper board education prevent private clubs from facing lawsuits? “Certainly, while litigation cannot be prevented in every case, knowledge is an essential defensive strategy and a critical element in any case,” Tanzer added. Can a proper board orientation foster synergy between the club’s board and the club’s general manager/COO, and will this encourage collaborative governance? “Absolutely,” stressed GSI’s Farrell. “Once new board members are brought up to speed, the magic happens through partnership with management. Truly effective general managers partner with their boards to collaboratively develop policy, while at the same time, executing that policy,” he added. “A good thorough education or enlightenment will help the relationship between the management and board. This education will enhance the communication between the board and management and will help each other to respect and understand their duties better,” explained APCD’s Welch. “We hope that the better communication and collaboration will help build the relationship with the GM/COO and strengthen the club. The board experience will be enhanced and the member experience will be better.
Setting Up Your Board for Success BoardRoom Institute is the Answer! By Dave White, editor Are you struggling with your board or the governance model your club uses? Do your board members understand the role they play on your board? Are your board members aware of their fiduciary responsibility to your club and members?
If you have any questions about your board or the frustrations that make come with it then the Association of Private Club Directors and BoardRoom Institute is your answer. “Over the past year the Association of Private Club Directors (APCD) has developed an educational curriculum to meet the needs of today’s board member,” explained Gordon Welch, president of APCD. “We recognize that the technology we use is the best, and through a restructuring BoardRoom Institute (APCD’s educational arm), including more than 20 focus groups and hours of developing new content, we offer the industry’s premiere board orientation,” Welch added. 26
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“A decade or so ago, several consultants were asked this question: What is the most important issue on the table for our industry in the next 10 years. For me that question is a no brainer. The industry has done a good job over the past 20 years in educating general managers, and we now need to do a better job in educating club boards,” offered Jerry McCoy, BoardRoom Institute’s dean of education. “Over the years, various groups have concentrated on providing resources to help make club boards better. Each with varying levels of success. It all comes down to the individual board member’s willingness to invest the time necessary to become more knowledgeable regarding the club business they serve. It’s been difficult to hold a board member accountable,” McCoy added. “Right from Day One with the introduction of BoardRoom magazine 22 years ago, we’ve always focused on the importance of Replacing Emotion with Facts. That’s
“A proper and thorough board orientation will foster a better relationship with the general manager/COO. The board members will understand their roles and that of the GM/COO. Relationships will be more open and trusted fostering a collaborative atmosphere,” Welch concluded. “What are the key takeaways from this information? First, the nomination committee is one of the most important committees in the club,” stressed McCoy. “This committee’s selection process will impact the club more than almost anything else except maybe bad management. Only with good people setting around the board table can good things happen. “Secondly, all candidates should commit to the present club governance model (if modeled after best practices) and commit to being part of an orientation process if elected. Thirdly, every director should support ongoing education at all levels of the club. This would include ongoing education of the board itself,” McCoy added. “The ‘moments of truth’ are positively impacted when the board clearly understands what is involved in running the ‘business’ of the club,” offered Dick Kopplin.
“They (board members) also are in a much better position to explain to their fellow board members what it takes to operate a multi-million-dollar business while balancing the needs of the various club constituencies,” he added. “The benefits of educating board members are many,” Fornaro emphasized. “And for starters, the focus can be on collaborative governance and reduced micromanagement from board members; understanding of bylaws, and fiduciary responsibilities and limited liabilities. “While many private club board members may have experience as directors outside their clubs, it doesn’t particularly mean they’ll be successful as a director of a private club. A responsible board education gives them an opportunity to learn more about their private club as a unique business and what it means to ensure an enhanced member experience.” BR
the significant factor with BoardRoom Institute… people running their private clubs need to work with information, facts and data – not emotion – to help them better serve their club’s members,” emphasized John Fornaro, BoardRoom’s CEO and the brainchild behind the Institute. “BoardRoom Institute brings together some of the industry’s top experts to pass along their specific knowledge in many different areas. This leads not only to a better understanding by board members of their roles and responsibilities, but also the club’s ‘certification’ exemplifying the club can govern itself in an industry-accepted manner,” Fornaro added. Seminar leaders include: • Peter Bevacqua, CEO, PGA of America • Rhett Evans, CEO, Golf Course Superintendents Association of America (GCSAA) • John Embree, CEO, USPTA • Randy Addison, Addison Law • Kevin Reilly, an attorney and CPA, and a partner in the firm of PBMares, LLP, • Phil Newman, CPA, CIA, CGFM, partner with RSM US LLP • Jim Fedigan, Jonas Software • Jim Butler, CEO, Club Benchmarking • Phil Harvey, principle, Preferred Club Program • Jerry McCoy, BoardRoom Institute’s dean of education
• Rick Coyne, CEO, ClubMark • Gregg Patterson, president, Tribal Magic • Doug Green, president, The Polo Club of Boca Raton • APCD’s Gordon Welch and John Fornaro. “Private club boards are not so different from any other board of directors, but as directors join the board, it’s essential that they have a comprehensive orientation that successfully prepares them for their role in private club governance,” Fornaro added. “There has been significant research on how to best educate boards. What is the most effective communication tool? What we do know is that technology has provided new opportunities. We know that most board members are busy people. Therefore, any education must contain these following five elements,” McCoy explained. 1. Content must be interesting and pertinent 2. Provided by the most competent experts 3. Short presentations that keep participants engaged 4. Flexible and accessible for busy schedules 5. Participation by individuals - Can be tracked, so the GM/president knows who has completed which elements of the program
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“A revitalized BoardRoom Institute (BRI) is focused on governance. Emphasis is placed on bylaws, ethics, conflict of interest, confidentiality and the board’s liability. We also give in-depth training on good habits of effective boards, the role of the board and its committee structure, the role of the GM/COO and the role of the president and executive committee. All in all, the BoardRoom Institute has the best on-line board orientation and, the only online orientation offered in the United States,” Welch outlined. “While APCD and the Institute focuses on governance, we also want you to have information regarding your professional staff, their roles and how to work with and communicate with your club professionals. “Committees also face challenges and their roles and responsibilities aren’t always understood. We have created content that will help you with committees, rogue board members and micromanagement.” The modules have been created to give information and answer questions board members have about specific areas of club governance. i.e. bylaws. The role of the board, the role of the presidents and executive committee; the roles and responsibilities of committees; private club finance, management and the ingredients of successful clubs. “Many of the people that I’ve spoken with are already doing a board orientation, but through Boardroom Institute the education we offer is an enhancement…It hits all the major points that need greater explanation or emphasis than can be offered in an board orientation,” Welch added. “The curriculum is both comprehensive and extensive. Often educational programs will tell you the right thing to do, but BoardRoom Institute also waves some ‘red flags’…cautions or pitfalls that board members should avoid, “McCoy emphasized. These include: 1. How to avoid micromanagement 2. Why a board must speak in one voice 3. Why member opinion is so valuable 4. How to track progress and initiate change 5. How to make your strategic plan a living document 6. Why you need a board resource chair 7. Using the action item approach for board meetings 8. Dealing with renegade directors 9. How to prioritize capital expenditures 10. Membership, leadership and staff communication strategies. B R
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BOARDROOM INSTITUTE LIST OF MODULES INTRO TO PRIVATE CLUBS 1. Introduction to the Private Club Industry 2. Types of Clubs and Ownership 3. Basic Structure and Governance of a Private Club PRIVATE CLUB GOVERNANCE 1. Bylaws – the relationship between governance and membership 2. Role of the Board – what makes good board members and cautions to avoid 3. Role of the President & Executive Committee 4. Role of the GM/CEO 5. Committee Roles 6. Ethics 7. Club Liability 8. Managing Board Meetings COMMITTEE ROLES AND RESPONSIBILITIES 1. Role of the Secretary 2. Nominating Committee Tactics & Strategies 3. By-laws & Governance 4. Strategic Planning/Long Range Planning 5. Finance Committee /Role of the Treasurer 6. House Committee 7. Golf Committee* 8. Greens & Grounds Committee 9. Membership* 10. Tennis 11. Aquatics PRIVATE CLUB FINANCE 1. Sound Fiscal Management 2. Fiduciary Responsibilities 3. 501(c) 7 Clubs 4. Managing the Clubs Portfolio MANAGEMENT 1. Role of the GM/CEO 2. Roll of the Controller 3. Role of the Director of Golf / Golf Professional 4. Roll of the Golf Course Superintendent 5. Roll of the Aquatics Director 6. Roll of the Tennis Professional 7. Role of the Clubhouse Manager 8. Role of Director of Membership 9. Roll of the Director of Technology 10. Roll of Engineering / Maintenance INGREDIENTS OF SUCCESSFUL CLUBS 1. Good Risk Management for Private Clubs 2. Strategic Planning for Your Club 3. Benchmarking for a Private Club 4. Engaging Past Presidents* 5. Managing Diversity in Club Governance 6. Managing the Renegade Director* 7. Risk Management for Private Clubs 8. Effective Oversight by Volunteer Leadership versus Micromanagement
“I always remember Benjamin Franklin’s comment,” opined McCoy. “Tell me and I’ll forget. Show me and I may remember. Involve me and I learn.” BoardRoom Institute offers your club solutions for your board orientation… so get your club and your board involved. For additional information, please contact Gordon Welch, president, APCD at (918) 914-9050 or via email: gordon@apcd.com. Jerry McCoy, BoardRoom Institute’s dean of education at (770) 315-4171 or via email: cmaamcm@msn.com
molly Cox
executive COMMITTEE
Molly Cox is co-author with John Fornaro, of the book, The Distinguished Club Experience—A peek inside 20 private Distinguished Clubs with Lessons of Leadership, Engagement and Loyalty. She is a keynote speaker, trainer and the creator of The Distinguished Club Experience programs. Molly can be reached at (651) 336-9896. (order the book at www.boardroom.com)
Never Address the Bored How to Persuade Like a Pro
So, you want to push a project through and convince the board of directors that your club needs [fill in the blank] new dining room furniture, a state-of-the-art sprinkler system, updated lockers, a Tiki Bar made from wood you can only get from Papua New Guinea. What are the chances that you’ll persuade the board to move forward? Zero. Nada. None. Well, that’s if you don’t prepare, acquire presentation skills and provide the sizzle and the steak that will make them say Yes! ShowTime
You’ve dressed for the part (right?). You stand, take a de-e-p breath and begin to pitch your idea. Collectively, the board slouches in the “How much money is this going to cost us?” position. As you talk, board members thought bubbles read something like this: • He has no idea what he’s talking about, and he needs a clean shirt • Who hired her? She’s got a deer-in-the-headlights look • Five o’clock can’t get here soon enough You see it, you feel it, but you forge on ahead with your details, numbers and dates. Yawn. Then, another department head steps up to address the board … and the room changes. There’s an energy and anticipation once she begins talking. She’s doing something different. She’s telling a story. With energy and passion. They’re hooked! How did she do that? NumBerS Tell. STorieS Sell
Story. She told a story. Then she weaved in the facts, the numbers and the “ask.” She took the time to build her case as though she were on the show “Shark Tank”, or in front of a book publisher, or a jury. She cared enough to rehearse. We make decisions based on emotion far more than you may think. By creating an experience through an impactful, deep connection, you build a bond and paint a picture that everyone can visualize.
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PreSideNTS do iT. So Should you
Watch any president give the State of the Union address. Seated in the audience is always someone who’s been chosen for the president to tell a story about in order to create an emotional reaction. We listen and try to hold back a tear. Then the person stands to thunderous applause. The effect is brilliant. Mic drop. Tell the story of how you discovered the problem. Think back to the first time it occurred to you that this problem needed to be solved, or that there was an untapped opportunity. Bullet point your discovery timeline. Note specifically when you felt that aha! moment, and then … how you discovered the solution. Tell. That. Story. Add tension and a logical conclusion they can all get their heads, hearts and egos around. Help them to see the solution is possible – and you’re the guy to do it! Remember, every pitch should have a trust element. If people see the solution, but you haven’t convinced them that you or your department is capable, then all bets are off, so make sure you build personal credibility into your story. And that leads us back to creating tension in a story. “Yes, we agree!” Their thought bubble reads. “So, what happens next? How can we solve this?” Share the details, the timeline, the end-game clearly. When you say something like “This is what my research has proven”, or, “after talking with five general managers and visiting three clubs that are doing this, it’s clear to me…” Or, “It’s never been done before, and that’s why it’s brilliant. Here’s why and how it will work.” And if appropriate for your club, go for it right then and there: “$75 billion is a lot of money, but think of what it could do for our club! I will be a good steward of the investment and oversee the project every step of the way. Thank you!” End of story. BR
BreNT hildreTh Brent Hildreth, is a Club Benchmarking capital reserve specialist. Contact our CRS team by email (crs@clubbenchmarking.com) or call (617) 830-2570.
executive committee
Ready to Build a Bright Future for Your Club? Just Say NO to DIY
medical advancements like joint replacement have made it remarkably easy for aging club members to rebuild their crumbling physical infrastructure with installation of a brand-new hip, knee or shoulder.
We all have a friend or golf partner who’s gone through it, but probably none who would have ever considered performing their own surgery or even worse, asking a member of their regular Saturday foursome to take up a scalpel. There’s no debating that the best person for such a serious job is an experienced medical professional. Preferably one who is properly trained in their field of expertise, armed with a track record of successful outcomes and proper tools for the task at hand. There are just some situations where a do-it-yourself approach should never be considered an option. While Baby Boomer members line up to replace parts in the hope of revitalizing their golf games and social lives, their clubs are also experiencing the effects of time. Club leaders across the country are slowly waking up to the reality of aging infrastructure and deteriorating physical assets and the impact of that decline on their club’s long-term financial health. Those club leaders share a common bond in that the decision to accept a position on a private club board carries with it a legally binding fiduciary obligation to protect and grow the assets of the club. The board is tasked with providing strategic direction and a vision for the club’s future. With that responsibility comes a requirement to ask and answer some tough questions: For example, “What is the club’s ability to add new amenities?” “When should the greens be replaced?” “How much longer will the carpet and furnishings hold out?” “Where will the money come from to make those things happen?” Unfortunately, as these difficult questions surface, some club leaders will perpetuate a common pattern of kicking challenges down the road to be dealt with by a future board. Other club leaders will recognize the importance of studying the club’s physical assets, but wrongly conclude that a do-it-yourself approach will be “good enough.” Typically, in this DIY scenario, the assignment lands on building maintenance staff and accounting team members armed with little more than a depreciation schedule and/or 34
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the capital asset schedule. In the end, like a DIY surgeon attempting to assess an aging patient, well-meaning staff members lack the time, tools and expertise to perform this critical task. The result is, predictably, an imprecise and inaccurate depiction of the club’s future capital needs. According to Club Benchmarking data, more than 60 percent of private clubs in the United States are currently underfunded for future capital expenditures. For many clubs, the gap exists because they lack accurate documentation of the scope, condition and life expectancy of their club’s physical assets. The alternative to this DIY approach is an objective, third-party, professional capital reserve study (CRS) to inventory, assess and prioritize capital needs well into the future. A professional CRS provides the financial starting point for strategic planning and is a critical component of fulfilling a board’s fiduciary responsibility. Based on findings from our research and interaction with hundreds of club boards, we believe the need for professional capital reserve studies in the club industry is urgent. In direct response to that need, we recently expanded Club Benchmarking services to make professional capital reserve studies more widely available. Led by the industry’s foremost CRS expert, Paul Mueller, our team of Club Benchmarking CRS specialists is on a mission to deliver studies that meet these goals: • Help boards meet their fiduciary duty to inventory and then protect, preserve and grow club assets • Foster a long-term strategic view of club leadership • Proactively identify capital spending needs and identify any future gaps between needs and resources • Equip board and committees to make fact-based proactive decisions • Arm club executives with information to plan accurate annual budgets • Instill member confidence in financial plans and projections. Our proven process of financial analysis, staff interviews and onsite inspections creates a foundation for impartial, fact-based decisions and serves as the critical input for long-term financial planning. BR
CMAA GOVERNANCE LEADERSHIP SUMMITS
Once again we have partnered with CMAA to present the Governance/Leadership Summits around the country, communicating directly with board members and General Manager/COO's on how top performing clubs are structured and typically function. It is truly a remarkable “one of a kind” day of education, which continues to receive rave reviews from previous attendees.
REGISTER TODAY
DICK KOPPLIN
KURT KUEBLER
Visit www.cmaa.org and click on events to register for these upcoming summits:
• • • •
May 18th at Winged Foot Golf Club - Mamaroneck, NY June 8th at Medinah Country Club – Chicago, IL September 12th at Country Club of Rochester – Rochester, NY December 4th at Pinehurst Country Club – Denver, CO
LISA CARROLL
TOM WALLACE
SAM LINDSLEY
LEN SIMARD
JACK SULLIVAN
ARMEN SUNY
S PECIALIZING IN G ENERAL M ANAGER /COO, D IRECTOR OF G OLF, G OLF C OURSE S UPERINTENDENT, E XECUTIVE C HEF, R ACQUET S PORTS P ROFESSIONAL , C OMMUNITY A SSOCIATION M ANAGER , A SSISTANT G ENERAL M ANAGER , C LUBHOUSE M ANAGER /F OOD & B EVERAGE D IRECTOR AND F ITNESS D IRECTOR SEARCHES , AS WELL AS S TRATEGIC P LANNING AND C ONSULTING S ERVICES FOR PRIVATE , RESORT AND DEVELOPER - OWNED PROPERTIES .
A T L A N TA
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CLEVELAND
W W W. K K A N D W . C O M
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DENVER
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JUPITER
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NAPLES
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S C OT T S D A L E
WE LOOK FORWARD TO SEEING YOU AT THE . . . EXECUTIVE SEARCH FIRM OF THE YEAR 11TH YEAR IN A ROW
2018 National Club Conference April 16-18 Millennium Biltmore Hotel in Los Angeles.
Todd dufek
house COMMITTEE
Todd Dufek is the president of the Locker Room Managers Association with 400 - 500 members at over 200 member clubs nationwide (www.yourlrma.com). He is the locker room manager at The Country Club at DC Ranch in Scottsdale, AZ Contact Todd at tmdufek@cox.net for information about membership in the LRMA.
Does Your Board Understand What Your Members Want? “what do you need to make the locker rooms at your club the best they can be for your members and guests, and more satisfying and efficient for you?” That’s one question your board members must ask your locker room manager. Why? Because locker room managers have their fingers on the pulse of what members want…not only in the locker rooms, but throughout your club – knowledge and wisdom that comes from daily, firsthand interaction with members that have been at your club from weeks to decades (plus, they overhear things too). As president of the Locker Room Managers Association, I’ve asked locker room managers at golf and country clubs across the country this question and responses have ranged from suggestions about the size of the shoe room to the importance of providing excellent service and everything in between, including the need for support and respect.
For Luis Hermosillo, who has spent nearly 50 years managing the locker rooms at San Gabriel Country Club in San Gabriel, California, it comes down to one word: Service. As he put it, “Making our locker rooms the best they can be for our members and guests boils down to providing the best service possible. Which is making our members, and especially their guests, feel welcome.” Others in the profession need the attention of management so that their locker rooms can meet their full potential. “Support from the general manager to maintain and supply the locker rooms is very important to me,” said Tom Behrendt, locker room manager at Arrowhead Country Club in Glendale, Arizona. Bruce Barilla, a retired locker room veteran who has worked at some of the most prestigious country clubs and resorts in the U.S., including The Greenbrier, summed it up best. “Locker room managers need to be given enough au-
“Locker room managers need to be given enough authority to make changes and be given a say-so in what needs to be done and how to do it. The locker room manager is the one doing the job and knows best, along with the members, what the locker rooms need. It is a matter of confidence and respect.” Bruce Barilla “I wish the shoe room was bigger. But it is what it is,” opined Bobby Orr, locker room manager at Big Canyon Country Club in Newport Beach, California. Other than that, he’s very pleased with the services and amenities he provides in both locker rooms, and so are the members. At my club, The Country Club at DC Ranch in Scottsdale, Arizona, we are encouraged by management to come up with a plan to make each department even better for the upcoming season. The locker rooms are no exception. This year we repainted the men’s locker room and added two shelves in the wet area that hold a variety of high-end colognes (we provided the women with expensive brand name perfumes). For our female members (they are pleased with their decor), we provide protein smoothies made on the spot from fresh fruits, and an even wider variety of healthy snacks, especially for the golfers. 36
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thority to make changes and be given a say-so in what needs to be done and how to do it. The locker room manager is the one doing the job and knows best, along with the members, what the locker rooms need. It is a matter of confidence and respect.” Part of that “respect” is making sure that locker room managers get the opportunity to address the board about their concerns and attend golf operations meetings for the same reason. Having a platform to share what locker room managers know will lead to a better understanding of member needs, create ways to meet them and continue their club’s kinship with excellence. BR
riChard mCPhail
executive COMMITTEE
Richard McPhail, CCM, is a founding partner of Club Revenue Solutions, LLC, a private club consulting firm. He can be reached at 239-223-2741 or DickMcPhail@aol.com. For more information visit the company’s website at clubrevenuesolutions.com.
The Elephant in the Club, Part I Cast out the Sorehead
you may already know one, and many private clubs have one or more of these “sorehead” members in their roster. The types of disruptive behavior and/or the abrasive personalities these members exhibit may vary but these “soreheads” are club members whose actions or language may disrupt the positive atmosphere, culture and morale of a club. They may ignore the club’s rules or policies and negatively affect the business, sports, dining and/or social functions of the club. The term “Cast Out the Sorehead” quoted comes from a piece attributed to the late Robert H. Dedman, Sr., the founder of ClubCorp – a philosophy that hung prominently in the lobby of every club that he owned. “…A club is a place of courtesy, good breeding and good manners. A club is a place for camaraderie, merriment, good will, and good cheer. It humbles the mighty, draws out the timid and casts out the sorehead….” Most private clubs, in one way or another, would say that they try to foster an atmosphere of “ladies and gentlemen serving ladies and gentlemen.” However, the sorehead’s negative behaviors often affect not only other members but also typically affect one or more of the club’s employees. The sorehead’s behavior can directly interfere with the performance of employees’ jobs, disrupt member events and depress club morale. Board members may be reluctant to follow through with, and support management’s recommendation for discipline of their fellow members for inappropriate behavior toward other members and/or staff members, even though those disciplinary policies are usually included in the club’s rules and bylaws. Club board inaction to the issue of any sorehead inappropriate conduct (whether reported by management, employees or by fellow members) sets a very detrimental tone and precedent for club management and the club’s employees, as well as for the rest of the membership. The lack of consequence for inappropriate behavior will likely be noticed by the sorehead. Therefore, the potential for them to become more entrenched in their “bad” behavior evolves. 38
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Unaddressed bad behavior by members can also be contagious and board failure to discipline a member can be taken as carte blanche for others to begin to behave badly by simply ignoring those same or other club policies and rules or by exhibiting inappropriate conduct. Over time a lack of consistently-enforced consequences for the sorehead’s conduct can change the tone, atmosphere and market reputation of a club. Some club members may resign or stop participating in club activities and events where the sorehead’s inappropriate actions affect the camaraderie, atmosphere and enjoyment by those other members, and often their guests. When the board fails to enforce club policies, rules and standards of conduct for any one of their club’s members, the board is failing to show appropriate support for the club’s management and the entire staff. By failing to carry out progressive discipline for any of their club’s members (in response to complaints) for the benefit of all members, they may lose the respect of the staff and the membership. By their inaction, the board will have failed to provide an appropriate club environment for other members’ enjoyment. The ramifications to the club’s atmosphere, staff morale and member culture are going to reflect that lack of board action and support. Without a consistent and effective board response the board will have an employee team that already knows that their board will not support the employees to address and correct legitimate concerns about negative member conduct. The employees will lose pride in their club and respect for their board and club management leadership. The teamwork, positive momentum and atmosphere that the club management team must build to provide the positive club culture the members strive for can erode into negativity. For the board and the club, this runs counter to what should be among its primary goals. A supported, loyal and productive staff team should be a top priority in any private club to maximize successful momentum, branding, image and club reputation, as well as consistent day-to-day member satisfaction. BR
SuSaN GreeNe
executive COMMITTEE
Susan Greene, MCMP, is a 29-year veteran in the private club business, and director of membership and marketing for The Oaks Club in Osprey, FL. She serves as the national president of PCMA (Professional Club Marketing Association). She can be reached via email: sgreene@theoaksclub.com
New Member Orientation Isn’t Just for New Members it’s the beginning of the year. you’ve had your board nominating process and you’ve elected new board members, and now what happens next is critical to your new board’s success. In order to have a great board or a BoardRoom Distinguished Club, the club needs engaged, inspired board members who understand how to help. “Tom” has served his club over the years being involved in numerous committees. He enthusiastically agreed to join the board because he believed he could make a difference. During the recruitment process for a board position, Tom received some basic materials about “the job”, most specifically a document outlining fiduciary responsible. Score one for this club. Time for his first board meeting. Tom is excited. Several binders are laid out on a table with names on them, but alas none with his name. “Oh, just take Sarah’s, she’s not coming today.” The binder sits full of current and past information, but Tom is lost. It’s
• Announcement of their appointment to friends and associates along with a personal invitation to join the board member in club membership • The club’s history and timeline • An explanation of the difference between corporate boards versus non-profit club boards • Governance versus management • Video of a day in the life of a CEO/COO (this should present a few aha moments) • Governance, ethics and policies • A team building exercise • The club’s culture • FAQs (those perceived as “dumb” questions like what to wear to the meetings, industry acronyms such as FME is not “feed members every day”, and mastering the club’s website) • Video from a third party reviewing club financials • No surprises – be certain to include challenges
Just like we hold orientation for our new members to help them feel informed and engaged in their new club, the same should apply for new board members...Remember, your new board member is your future. Board members starting their service this way will be your most engaged and productive board members. They serve as strategic partners to the CEO/COO on long term planning and short-term crisis management. like he began watching a movie in the middle. How long do you think Tom lasted on the board? Just like we hold orientation for our new members to help them feel informed and engaged in their new club, the same should apply for new board members. Even though the CEO/COO is the leader of the orientation, the existing board should define board members’ roles during orientation and make certain they hold critical parts up to and including a mentorship. Remember, your new board member is your future. Just like any orientation, the basics are covered but the agenda might also include: • Date of club events they should attend as board member representatives 40
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The end in mind is to make certain new board members feel: • Well informed about the industry • Well informed about their roles • Well informed about the operations • Who’s who • Valued and appreciated Board members starting their service this way will be your most engaged and productive board members. They serve as strategic partners to the CEO/COO on long term planning and short-term crisis management. And this is why new board member orientations just make ‘cents’ to me. BR
roNald f. CiChy Dr. Ronald F. Cichy, O.M., professor, The School of Hospitality Business, Michigan State University
executive COMMITTEE
Who and What Is the iGEN? Part I “… why can’t they be like we were? Perfect in every way. what’s the matter with kids today?” – as sung by Paul lynde in Bye Bye Birdy. Private club leaders continue to be challenged to appeal to Millennials and families as strategies to attract and retain younger members. The leaders know about Millennials. What about their younger sisters and brothers? These younger siblings are referred to as GEN Z or iGEN. GEN Z, following GEN X (Millennials), or iGEN for the idevices (e.g., iPhones, iPads, iWatches) that they employ and enjoy. iGEN (born first around 1995) members are graduating from college this year. It is impossible to describe hard and fast characteristics of iGEN, since so much of their experiences are personal and individual. But we have discovered five Cs about iGEN: curiosity, communication, connection, college, and career in the brief time we have known them. CurioSiTy iGEN is closely tied to online interactions. Some were given a domain name at birth, just after their parents chose a first name and a second name to add to their surname. iGEN spends time and money online. They use online reviews of products and services to influence their buying decisions. Often, they are searching for access to a product or service, not necessarily to acquire and own them, but more like renting what you need when you need it. They are curious about what others think about the intended purchase. One iGEN said: “If I know my peers like the item, maybe I will as well.” iGEN enjoys Bixi and Hubway, public bike riding systems, and Zipcar for car sharing. iGEN’s spending power is likely focused on experiences, food, music and travel more than purchasing and possessing tangible, material items. iGEN is curious about other cultures and is more diverse culturally than previous generations, as well as much more accepting of people who are different. The increased diversity in guests and talent impacts operations (e.g., menu planning). If the people are more diverse, so should be the menu offerings. Ideally the food is grown locally and then prepared using international cuisine recipes, or sometimes using one of Grandma’s recipes. iGENs like to learn. Where will iGEN’s curiosity next lead? Perhaps virtual reality where people come together in a virtual environment. Or perhaps artificial intelligence applied to TALENT robots for service applications in private clubs. Can robot caddies be far behind? With artificial intelligence, the virtual world can be created only for the iCreator. iGEN wants the application of games’ elements, design and mechanics into training and development. Games can be personalized professional development tools and just might make work more fun for the iGEN, and beneficial for the club’s members. CommuNiCaTioN iGEN is savvy when it comes to communicating through their idevices. One iGEN said: “My idevices help me to communicate quickly and succinctly.” Emojis 42
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are often used to cut down on words. They may not yet have practiced enough to communicate person-to-person. One iGEN said: “I use YouTube, Twitter, and Snapchat most.” This addiction to communication can be very disruptive in a college classroom. The NØ KNOW™ (trademarked and patent pending) bag was invented to stop all idevice use in class. The label in the bag reads: “It is impossible to focus on learning with laptops and cell phones in use during class. In HB 489, you are expected to take notes with pen and paper. Please silence your idevices and put them into your NØ KNOW™ bag at the start of class. Do not use idevices during class. Retrieve your cell phone when class is over or during Quad research time in class. Your NØ KNOW™ bag is furnished free of charge by an anonymous alumnus. We trust that you will follow this requirement as a courtesy to your contemporary emerging leaders. THANK YOU for your courtesy.” iGENs are made aware that the NØ KNOW™ bag also works while driving, studying, dining, walking, chatting, sleeping and meditating. iGEN can communicate rapidly around the world through various social media and #hashtags. They learn about similarities and differences through their idevices. iGEN wants individual meaning and personalization. iGEN does not much care for email or TV, but rather live streaming online – Netflix, and YouTube are preferred. When reading, iGEN prefers shorter, more succinct readings 600 words, or less. Blog-sized messages force the originator to stick to the premise and conclusion in such a way that iGEN understands. One iGEN commented: “We like pictures.” See exeCuTive CommiTTee | 81
NaNCy m. leveNBurG Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the president of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 331-7475.
plights and insights
Ain’t Misbehavin’ “ain’t misbehavin”, the title of a song written by fats waller in 1929, has been recorded by artists like louis armstrong, ella fitzgerald, Bing Crosby, Billie holliday, Sarah vaughn, miles davis, and more.
In the late 1970s, it became the title of the award-winning Broadway musical revue that paid tribute to the Harlem’s black musicians of the 1920s and 30s. Ain’t Misbehavin’ is also how we all hope that private club members treat their fellow members, the course and the game of golf, and club employees. But (alas!) sometimes there are misbehavers – or members who misbehave – lurking in our midst. After all, it would be folly to assume that everyone will always follow either the Rules of Golf or the Golden Rule. As a few examples, they may: • Hold up the speed of play by refusing to let other faster-playing golfers play through. (A good rule of thumb is to always keep your eye on the group in front of you and keep pace. If you’re not keeping pace – and you’re delaying the group behind you – let them play through.) • Deliberately hit into a group in front of you if that group is playing slowly. • Throw clubs in anger. Not only can this damage the course, but it also can be dangerous to another player. • Relieve themselves in the open. • Cheating…for example, failing to count all strokes taken on a hole. What’s a club to do? Does it look the other way, shutting its eyes to members misbehavin’? Codes of conduct and disciplinary committees: A number of clubs today are developing codes of conduct for members and their guests that address everything from appropriate dress to mobile phone use to slow play to care of the course. They’re also developing disciplinary – sometimes termed “ethics” – committees whose charge it is to investigate and address complaints about members’ less than appropriate behavior. For instance, Squamish Valley Golf Club (Squamish, B.C., Canada) has a published code of conduct that not only describes questionable activities, but also the responsibilities of and processes used by its disciplinary commit-
tee, appeal procedures, and consequences for first, second and third offences, which escalate from issuing a warning letter to cancellation of membership. Clovelly Country Club’s (Clovelly, South Africa) procedure is similar, stating, “Should any member in the opinion of the disciplinary committee commit any willful breach of the constitution, rules, code of Conduct and regulations or discipline of the club or be guilty of improper, dishonest, unsportsmanlike or unseemly conduct or of conduct which is prejudicial to the interest or good name of the club whether within the bounds of the club or outside, such behavior shall constitute a transgression which shall warrant discipline…” Closer to home, Rogue Valley Country Club (Medford, Oregon) has a disciplinary committee (comprised of members who – interestingly! – remain anonymous) that is tasked with investigating complaints and developing recommendations for the board in matters that not resolved by the board president or general manager. whaT Should your CluB do?
Let’s face it… all clubs have to deal with members’ inappropriate behaviors at one time or another. Questions to ask yourself include: • How prevalent are misbehaviors? • How serious are those misbehaviors and what is their effect on others? • What are the most appropriate channels for handling misbehaviors? Are those channels already in place (for example, through the club manager or the club’s board president)? If so, are they effective? • If not, would it be a good idea to develop a code of conduct (and a disciplinary committee)? And if so, who (i.e., what characteristics should be sought in members who comprise the disciplinary committee? Should their identities be public or should they remain anonymous?) As resources, a number of models for codes of conduct – as well as disciplinary committees – exist on the internet, which can be useful in framing your club’s policy and procedures. The bottom line… good luck! BR
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BoardRoom magazine
Excellence in Achievement Awards The Boardroom magazine “excellence in achievement” awards is the only private club industry award that recognizes the clubs’ business partners. BoardRoom magazine’s industry peers review and select these outstanding suppliers and consultants, which represent various aspects of course and club operations. Winners, each year, are selected for overall excellence in their respective fields, achievements, innovation, vision for future growth and continued impact on private club operations. “The BoardRoom Awards are the only awards in the private club industry that recognize private clubs’ business partners, and every year we see increasing innovation, achievement, a vision and dedication from BoardRoom Award recipients. And of course, private clubs are the beneficiary of outstanding work of the industry’s vendors,” said John Fornaro, publisher of the BoardRoom magazine. The BoardRoom magazine is the only publication of its kind that is designed to educate the board of directors, owners, general managers and department heads of private golf, city, yacht, tennis and country clubs about issues concerning all aspects of the club, golf course management and operations. LIFETIME ACHIEVEMENT
ARCHITECTURAL DESIGNER OF THE YEAR*
CLUB SOFTWARE FIRM OF THE YEAR
Jerry McCoy
Rogers McCagg Architects | Planners | Interior Designers
Northstar
ARCHITECTURAL DESIGNER OF THE YEAR*
Peacock + Lewis
BOARDROOM AWARD OF DEDICATION
Jeffrey P. McFadden GARY PLAYER EDUCATOR
Ray Cronin EDUCATOR
Molly Cox NEW PRODUCT OF THE YEAR
Golf Life Navigators
MAI | Marsh & Associates, Inc. ASSOCIATION OF THE YEAR
GCSAA BELLS AND CLOCK TOWERS FIRM OF THE YEAR
The Verdin Company BRANDING FIRM OF THE YEAR
Pipeline Marketing ACCOUNTING
RSM US LLP ACCOUNTS PAYABLE SYSTEM
GlobalVCard paysystems AMENITIES PROVIDER OF THE YEAR
Sports Solutions APPAREL PROVIDER OF THE YEAR
High End Uniforms
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CHAIR MANUFACTURER OF THE YEAR
Daniel Paul Chairs CLUB PHOTOGRAPHY FIRM OF THE YEAR
EA Photography CLUB PROGRAM OF THE YEAR
KECamps CLUBHOUSE SIGNAGE OF THE YEAR
Signera
CLUBHOUSE RENOVATION FIRM OF THE YEAR
CONSULTING COMPANY OF THE YEAR*
RCS Hospitality Group CONSULTING COMPANY OF THE YEAR*
Denehy Club Thinking Partners COURSE ARCHITECT (RENOVATION) FIRM OF THE YEAR
Bobby Weed Golf Design CRM
Pipeline Marketing DESIGN OUTDOOR ROOMS
C2 Limited Design Associates EXECUTIVE SEARCH FIRM OF THE YEAR
Kopplin Kuebler & Wallace F&B MANAGEMENT SOFTWARE OF THE YEAR
FOOD-TRAK/System Concept, Inc.
FURNITURE MANUFACTURER OF THE YEAR
LOGO APPAREL FIRM OF THE YEAR
REAL ESTATE SERVICE FIRM OF THE YEAR
Gasser Chair Company, Inc.
Ambassador Uniform
Hilda Allen Real Estate
GOLF COURSE ARCHITECT OF THE YEAR
MANAGEMENT COMPANY OF THE YEAR
SERVICE FIRM OF THE YEAR
Richard Mandell Golf Architecture
Troon
Talent +
GOLF COURSE DESIGN FIRM OF THE YEAR*
MASTER PLANNING FIRM OF THE YEAR
SOCIAL/CASUAL DINING INTERIOR DESIGN
George Golf Design
Chambers 360° Club Planning & Design
C2 Limited Design Associates
GOLF COURSE DESIGN FIRM OF THE YEAR*
MEMBERSHIP MARKETING FIRM OF THE YEAR
STAFF TRAINING COMPANY OF THE YEAR
Billy Casper Golf
Creative Golf Marketing
RCS Hospitality Group
GREEN PRODUCT OF THE YEAR
MEMBERSHIP SURVEY FIRM OF THE YEAR*
STRATEGIC PLANNING FIRM OF THE YEAR*
BambrellaUSA, Inc.
ClubIQ
Chambers 360° Club Planning & Design
HISTORIC RENOVATIONS FIRM OF THE YEAR
MEMBERSHIP SURVEY FIRM OF THE YEAR*
STRATEGIC PLANNING FIRM OF THE YEAR*
Lichten Craig Architecture + Interiors
McMahon Group
Clubwise Consulting
INTERIOR DESIGN FIRM OF THE YEAR
MEMBERSHIP SUSTAINABILITY
SUSTAINABILITY PROGRAM OF THE YEAR
Image Design, Inc.
Club Mark Membership Matters
SES Lighting
INTERIOR DESIGN CUSTOM FURNITURE
MENU COVERS
TENNIS COURT BUILDER OF THE YEAR
C2 Limited Design Associates
Polar
Welch Tennis
INTERIOR FURNISHING AND FINISHES DESIGN
NEW TECHNOLOGY PRODUCT OF THE YEAR
TENNIS SUPPLY COMPANY OF THE YEAR
HINT | Harris Interiors
Uncorkd
10-S Tennis Supply
KITCHEN & FOODSERVICE EQUIPMENT
OUTDOOR COOKING EQUIPMENT
UPHOLSTERY FIRM OF THE YEAR
DEI Food Service Equipment & Design
Big John Grills
Style Upholstery
LAW FIRM OF THE YEAR
PAYROLL PROGRAM OF THE YEAR
WEBSITE COMPANY OF THE YEAR
Addison Law
ClubPay
MembersFirst
LINEN PROVIDER OF THE YEAR
PERFORMANCE MANAGEMENT ASSESSMENT
WINERY OF THE YEAR
Something Different Linen
Paisano Performance Partners
Flora Springs Winery & Vineyards
LOCKER COMPANY OF THE YEAR
PURCHASING COMPANY OF THE YEAR
Hollman, Inc.
XHIBTZ Contract Furnishings
*DENOTES TIE
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Ned welC Ned Welc, CCM, CCE, is partner, GSI Executive Search and can be reached at (440) 796-7922 or via email: Ned@gsiexecutivesearch.com.
on the fRontlines
Do You Pass the General Manager Fit Factor Test? when private club search committees seek candidates for top-level positions such as general manager, they study resumés to understand candidates’ experiences, skills and qualifications. Yet, through our work as private club executive search specialists, we continually advise clients that ideal candidates are more than an assemblage of work histories, skills, certifications and educational credentials. Certainly, as a GM candidate, you should possess an impressive work history and the requisite skills to perform well in the role. But search committees increasingly consider candidates in a broader, more personal sense. There is something beyond your résumé – we call it the “fit factor” – that helps convince committee members you are the ideal fit for their club. The fit factor is who you are, in addition to what you are – and it matters. In this context, the fit factor gauges the extent to which committee members (and by extension, other club members) are and will be comfortable with you. Can they easily visualize you at the club every day? Can they see you interacting with members, teaching and leading staff, nurturing a welcoming environment for guests, upholding the club’s cherished traditions, elevating the club experience and exuding an infectious spirit? Skills and experience get your foot in the door. So, what qualities can boost your fit factor quotient and make you a potentially perfect fit? Be a solid citizen with no behavior issues or skeletons rattling around from previous jobs. While no one is perfect, your work and personal histories should be as clean as possible. Be yourself, but ideally, have a bigger-than-life personality. Highperforming GMs often pass the fit factor test because they have the “it factor” – i.e., they’re likeable, charming, magnetic and genuinely warm and welcoming, all while keeping a healthy and appropriately professional distance from members. Possess superior communication skills. You should think clearly and translate your thoughts equally clearly through all written and verbal communications with members and staff. For example, if you’re writing a GM column for the monthly newsletter, organize your thoughts, use short, simple sentences in an active (not passive) voice and speak directly to your audience. Exude energy and creativity in everything you do. Bring a passion to your job every day. It rubs off on everyone – staff and members alike. Assume an owner’s mentality. When you think like an owner, you invest yourself in the success of everything and everyone around you. Often, GMs who exhibit an owner’s mentality are the most successful professionals – and the most sought-after candidates – in their field. Display CEO qualities. This includes the ability to lead and delegate. It also means you must demonstrate consistent leadership skills – not just management skills. 46
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Be strong in your ability to assess, plan, measure and act in the best interests of your club and its members. Clubs are dynamic organizations and must adapt to the realities of modern life while still holding dear the assets and traditions that make them unique. Take initiative to keep your club relevant and highly desirable to members and prospective members alike. Give positive recognition for accomplishments by your staff. Chances are, they deserve it and they will certainly appreciate it. Listen actively and show empathy. Yours is a people business first and foremost. Be regarded as honest, trustworthy and reliable. Your integrity should never be challenged. Exhibit humility, an appropriate sense of humor, and confidence (but not arrogance). Rarely use “I” in a sentence. You are in service of the club, its members and your staff. Continually grow. You should maintain a commitment to personal and professional development for you and your staff. Accept the fact that you don’t know it all and have not seen everything (at least not yet). Every day is a new day, with new experiences and fresh opportunities to learn and grow. Embrace that and you’ll find energy and enthusiasm in your daily work that rubs off on those around you. Maintain a work/life balance that respects and accommodates the needs of the club and your loved ones. Leading as a general manager is a demanding and timeintensive position. Finding a balance isn’t easy. But it’s necessary and it does everyone good in the end. BR
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BryaN weBB
case study
Marsh & Associates, Inc. is a renowned clubhouse architecture and interior design specialist with over 20 years of expertise and has projects located throughout the world. Bryan Webb is a principal and director of design with Marsh & Associates, Inc. (MAI) and can be contacted via email bwebb@mai-architects.com or via telephone (720) 266-2582.
A New Level of Casual Dining – Vacation Style Creating a Vibrant Outdoor Space for Social Gathering with over 20 years of design expertise in the club industry we are often asked not only how to retain current members, but also what will attract new, younger members for years to come.
The Vaquero Club, located in Westlake, Texas engaged Marsh & Associates, Inc. (MAI) to help update their clubhouse amenities to appeal to a broader membership base. The master plan included a new fitness wing added to the clubhouse, enhanced locker areas, a new casual dining venue and a spirited outdoor dining retreat. Creating an energetic outdoor casual dining venue that would become known as The Ranch House – a club within a club – marked the first phase of this project and the focus of this case study Membership challenged us to create a space that evokes a vacation south of the border; an outdoor venue that allows members to “just hang out” and relax in a casual but lively social atmosphere. “Members love this space where they aren’t restricted by typical club rules” says general manager Tony Dawson. “This is a space where you can decompress in shorts and flip flops or, since we are in Texas, boots are welcome too.” MAI worked to repurpose an existing structure located between the golf practice facilities and the clubhouse – the perfect location to create a dynamic link for members to congregate. This placement along the newly enhanced golf amenities creates a playful interaction with social amenities and helps to bring golf back to the forefront of the club activities. Nearby chipping greens, putting surfaces and bunkers allow families to engage one another and pass along the passion for golf to the next generation.
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The design team created cohesive spaces that welcome members and their guests to enjoy a social experience unique in the club industry. A covered four-sided bar is the hub, anchoring the outdoor space with cross-talk comradery, TVs and refreshments. The adjacent landscape is replete with alcoves of fireside retreats, lounge groupings nestled amongst the trees, and cooling water features. Majestic oaks are ornamented with lanterns, providing a soft ambient glow that can extend activities well into the evening. Festoon lighting is loosely draped across the various outdoor spaces, forming a ceiling of soft light to further define the outdoor spaces. Open terraces create a ranch-style “stage” for live music and twilight plays and performances. Timber and limestone pavilions wrapped in canvas walls afford shelter for congregating or to escape the weather. Each tent structure is outfitted with big-screen TVs, fireplaces, lounge seating and dining tables, offering an environment to support multiple uses. This is a space that golfers, families, and social members come together as a community to enjoy the outdoors. Vaquero’s Ranch House opened to the membership and immediately met with high approval, creating a buzz throughout nearby communities. Dawson praises the increase in member use (and associated F& B revenue), and notes that members of all ages are enjoying the new outdoor retreat. This energized open-air social venue, coupled with adjacent activities, delivers on three of the most prevalent club trends; Wellness, family, and casual dining – exceeding the club’s expectations. BR
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Dave DOherty
gReen committee
Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil basedgreens. He can be reached at (913) 706-6635 or via e-mail: daveistrc@hotmail.com Web page: www.istrc.com
Bad Guy Gasses
An Imbalance is Trouble - Part I Organic matter in the top one to two inches of our root zone is the number one cause of green failure. The second leading cause of green failure is a lack of available oxygen/air to our roots in our root zone system. Oxygen is our most important ingredient for maintaining a healthy putting service. Nothing else even comes close. Bad guy gasses = lack of oxygen/air The sealing of our greens by organic matter in the top one to two inches and how and why in some cases we need to aerify to reduce this organic matter is a requirement to just keep our greens open and breathing in other cases. The industry has always assumed that if there are enough air pores [room at the inn] to house the roots and the microbes than there is an adequate supply of oxygen/air available to both the roots and microbes. Webster’s Dictionary describes air as: The elastic, invisible mixture of gases [chiefly nitrogen and oxygen, as well as hydrogen, carbon dioxide, argon, neon, helium, etc.] that surrounds the earth; atmosphere. It also describes oxygen as: A colorless, odorless, tasteless, gaseous chemical element that occurs free in the atmosphere, forming one fifth of its volume, and in combination in water, sandstone, limestone, etc.: it is very active, combines with nearly all other elements, is the most common element in the earth’s crust, and is essential to life processes and to combustion. Over the last 25 years, we have seen physical properties of greens that were ideal for supporting turf that should have provided an excellent putting surface, yet the greens struggled. These golf courses that have physical properties in their greens, that, although not ideal, are good enough to produce a healthy plant and a good putting surface. Yet, these courses have spent hundreds of hours and thousands of dollars to improve conditions and in many cases all to no avail. Fourteen years ago, while working with a very competent superintendent in charge of a 27-hole facility, we over a four-year period had done enough research on his different air movement greens to know what the ideal physical properties needed to be for each classification of green [high air movement, low air movement, and those in-between]. We had the physical properties to a point where they were in harmony with the micro-climates in which they had to exist.
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However, one green that no matter what we did or tried to do it, did not respond. When chemicals were applied there was a zero response to whatever product was applied. We aerified and we went without aerifying, yet the green remained unresponsive. We tried every conceivable type of irrigation from deep watering to syringing and still no response. The green had so many tests run on it for disease that it became legendary among labs that do soil chemistry testing. After four frustrating years we noticed one day that the main drain coming from the green went into the water hazard fronting the green. It occurred to us that maybe that drain was holding water which was backing up under the green. In the approach area in front of the green – between the green and the water hazard – we dug up the drain tile and cut it in half. The most foulsmelling water one can imagine burst out of that drain tile and continued to flow for well over an hour. Within a week the green was healthy and has stayed responsive and healthy. The water that backed up under that green had become anaerobic and was producing gasses, that because of the complexity of the mixture of different gasses I refer to only as bad guy gasses. These gasses emitting from our drain tiles had to go somewhere and that somewhere was up into our air pores where our roots and microbes were trying to live. Over the years I have yet to find anyone who can give me quantitative numbers for the gasses that need to be present in our root zones air pores so that our grass plants can breathe and function as Mother Nature intended. I have come to understand that an imbalance of nitrogen, oxygen, as well as hydrogen, carbon dioxide, argon, neon, helium, and other gasses can and will cause our turf to shut down and in many cases to die completely. BR
Steve SchenDel Steve Schendel is vice president/agronomist with Golf Maintenance Solutions. He can be reached at (630) 220-5977 or via email steve.s@golfmsolutions.com
gReen committee
Labor: A Time – And Need – For Change as we continue preparing for the golf season in many markets, it is important to keep labor as one of our highest priorities. Annual budgets for 2018 are now in place. Staffing requirements have been scrutinized and developed based on achieving maintenance standards at the course. Salaries and wages are presented for increases based on performance evaluations, and these plans always look great when they are developed. The reality though is that plans often get adjusted early in the season because of common labor issues. As we visit courses throughout the country, the number one issue at nearly every property (if not all) is labor. We all know that labor is the foundation of a successful golf course maintenance operation. However, we seldom hear that training and staffing levels are sustained at the course level. This is not new news. Labor has historically been a difficult part of managing any business and golf courses are no exception. Each and every year labor is at or near the top of the list of challenges that need addressed. Each year, it also gets more difficult. Some universal comments we hear include… • “I am always running a couple of people short” • “I can’t compete with the fast food restaurant down the street paying $15/hour” • “I can’t keep good help because they are finding jobs that pay more in the trades” • “I have to settle with whoever I can get” • “Minimum wages have skyrocketed but my budget has remained flat.” There are many challenges to overcome when trying to figure out the best strategies for addressing labor and wages. With minimum wages at $11/ hour in some states (and as high as $13.50/hour in some cities), budgets have needed significant adjusting over the past few years and some in the middle of the budget year. It is important to pay the right wage to attract good people, but as we know it can be difficult to compete with the retailer down the street or the local landscape company. This needs to start with basic personnel management techniques, yet we often fall short in the areas of training and performance management, which will improve employee retention. Multiple studies show the cost of losing an employee and having to hire a new one can be anywhere between 10 percent and 50 percent (or more) of the salary/wages for that employee. There are many variables that are included in the cost of replacing that employee. The cost to advertise, hire and
train new employees and lost productivity of that employee are just a few examples of costs involved when having to hire new employees. Understanding that entry-level employees have a lower percent cost of replacement, let’s look at an example: • If you have a seasonal employee making $10/hour who works 40 hours a week and 40 weeks in a year, they would make $16,000 a year. • If the cost to replace that employee is 10 percent, that’s $1,600 to replace that one employee. So how do we solve labor shortage issue(s)? Unfortunately, there is no “silver bullet” or formula that guarantees success, but there are things that we can do to improve our chances for success when adding staff at your course. • Be proactive. Start looking for your seasonal help a couple of months in advance • Advertise on websites, social media, post signs outside the club by the road, go to job fairs, hold open houses and continue all of the above since timing is everything in finding a good employee • Know the market. Each region and market have different opportunities to tap into for good help (often part-time) • Pay attractive wages that will help retain good help. This may mean making other budget adjustments, but paying good wages keeps good people • Change how we train. The superintendent’s role is very diverse and requires a lot of attention in many different areas. Training employees properly is time consuming and requires a lot of work. Yes, we often rely on “seasoned” employees to help train new employees, but they need more than that. New employees need extensive training with clearly defined/course specific goals. Do not underestimate the value of a good orientation program • Conduct open and honest employee reviews that ask questions like: What would ever make you think of leaving this company for another position? What is rewarding about this job? What keeps you motivated to keep working for us? What can we do to make this the best place you ever worked? • Never settle. This means do not settle for unqualified employees that no matter how hard you train them, they just won’t get it. This means do not settle for being understaffed. It is not easy, but if your tasking study shows you need 14 full time equivalents to achieve your standards, See green cOmmittee | 81 MARCH/APRIL 2018 | BOARDROOM
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BOnnie J. KnutSOn
MeMBeRship Musings
Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of Hospitality Business, Broad College of Business, Michigan State University, Dr. Knutson is a member of the Country Club of Lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu
Bring Back the Old Alka Seltzer Tubes my husband and i were married when we were 19 and still in college. like many young couples of our era, managing school, two jobs, and family didn’t leave a lot of discretionary time nor money. But we were good savers, even if it was only a quarter here or a dollar there.
This brings me to the old Alka Seltzer containers. Some of you may remember them. They looked like little glass tubes and contained the round tablets that fizzed when dropped in water. (These classic containers are now categorized as “vintage” collectables on eBay.) An empty glass tube became the perfect size to hold quarters. The diameter was just big enough to let a quarter slide down inside, stacking one on top of the other until the tube was full. Alka Seltzer became our own little bank and the glass tubes became our own little vacation savings account. As we packed each one, it was stored in our dresser drawer I can vividly remember the first time we opened that drawer and realized that we had saved enough for a weekend away. We were like two kids anticipating Christmas morning. We searched to find the perfect place so we could stretch our Alka Seltzer allotment as far as possible. Remember that this is pre-Internet without Trip Advisor, YELP, and Groupon so it took some work. When the Friday afternoon finally came, off we went to what we hoped would be a magical time together. And it was. While I can recall our room, the little restaurant where we had dinner, and lounging by the pool, it is walking through the resort’s grounds at night holding hands that holds my most vivid and fairy-tale memory. You see, that was the first time I had ever seen trees up-lit. It seemed as if the leaves on each tall, stately elm, maple, and ash were dancing, making irreplaceable patterns above us. It was truly magical. Since that weekend, every home in which we have lived has incorporated tree up-lights in its landscaping. Why do I tell you this story? Because these up-lights give me a sense of place. Sense of place has become one of marketing’s recent buzzwords. It’s been used to promote everything from national parks to housing developments. And, yes, it’s also used in marketing clubs. The truth, however, is that we can’t really define the phrase so we don’t really know how to leverage it effectively. Trying to define it is akin to what Supreme Court Justice Potter Stewart said in his 1964 test for obscenity, “I shall not today at52
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tempt further to define [it]…and perhaps I could never succeed in intelligibly doing so, but I know it when I see it…” Geographers look at sense of place from a locational perspective with its topographical characteristics. Anthropologists see it in terms of the relationship between culture and symbols. Sociologists think of it in terms of a feeling of belonging. Architects try to figure out how they can design and build it. And marketers just want to use it to increase revenues. But no matter what the viewpoint, there are three fundamental points to remember in developing your club’s sense of place. • First, just as perceptions are different for everyone, so is sense of place. Those up-lights are one of mine, but they were never my husband’s. While he lovingly remembered our walks beneath those trees, he found his sense of place stepping onto the first tee at any golf course. • Second, a sense of place needs a place; it has to have a geographic location. Here is where your club has a leg-up on the competition. By definition, you already have a physical place. Yours is a country club, a yacht club, a city club, or a fitness club. The question is whether it also has an emotional sense of place. • Third, it must have a distinctive identity that members and visitors can’t necessarily explain but can feel. The key ingredients here are unique, authentic, and character. It is this third point over which you probably have the most control, but it may also be the hardest for you to implement. It seems that, with the exploding competition, finding that unique and authentic concept to establish the club’s distinctive character becomes more challenging. But those who successfully do it are reaping the benefits. There is no question that the understanding how a sense of place develops and becomes relevant to your members is not an easy thing to do. Social psychologists, geographers, designers, and marketers have been trying to figure how to do it for years. All you can do is take what they have learned so far and work to integrate it into every aspect of your operations. Remember that a sense of place is an emotional bond between a person and their surroundings and is often rooted in past experience. This truism comes down to the notion of banked memories and takes us back to my story of Alka Seltzer containers and up-lights. So be sure to have your trees up-lit when I visit your club. It will give me my sense of place. Your Bottom Line will thank you. BR
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macDOnalD niven
on the fRontlines
MacDonald Niven, MA, MCM, CCE is with Niven Research and general manager of Oldfield Club, Okatie, SC and can be reached at (510)-439-8522 or via email: mac@niven.cc.
Maintaining Confidentiality What Would You Do?
Chris has been the club GM for several years. It is a club embroiled in political upheaval and constant infighting causing a great deal of angst amongst the staff. Chris needed to replace a high-level administrative person who voluntarily left the club after decades of service. Chris hired Pat who was initially expert at the position and worked 14-hour days to become specifically expert on the club’s issues. Pat worked very hard under impossible conditions, earned the respect of the staff, and the club leadership. However, Pat could be abrupt and was, sometimes, difficult to understand. Pat might be considered hard headed and a bit stubborn. The situational stress did not help the situation. Chris and Pat had a strong business relationship. Chris left that club for another. During a conversation with new manager Paul, it was let slip that there was a search for a new person, and that Pat, unbeknownst to Pat, would be replaced. Paul immediately realized the slip and asked that the information be kept in confidence. Chris has a dilemma: tell Pat and betray the confidence of a peer or leave Pat in a disadvantageous position.
We posed this question to managers across the country and received some very interesting responses. Thirty-five percent would tell Pat of the impending doom and Sixtyfive percent would hold the confidence. We received a host of responses which, as shown covered both sides, with a lot of middle ground. Some responses fell on the side of friendship, such as, “If Pat were a close friend, I think I would make him aware without directly implicating that the information came from the new GM.” Or, more to the point, “I would tell him – my obligation/loyalty to my friend and former colleague is the greater good than maintaining the new manager’s confidence.” One response was one of personal responsibility. “Chris owes Pat a warning of his pending termination. He knowingly brought Pat into a difficult and stressful club, and he got out. The club does not sound like the kind of place that cares too much about the staff, why protect them? You come to find out the longer you work in clubs that clubs
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don’t care. Staff come and go, managers are transient and replaceable. “Boards live on and they have become more dysfunctional through bad economies, bad governance and micromanagementitis (a new word I just created). Chris’ role is to protect his staff, current and former. No one is looking out for them. The cards are stacked against them. He cannot betray them.” Others breached the gap between friendship and business with a response such as, “Assuming Pat has not been given fair opportunity to correct his shortfalls, I would advise the new GM that either he inform Pat of the search or I would. I believe there is an ethical issue here. “I have a strong working relationship with a former employee who deserves to know that he doesn’t fit in with the new management plan. Also, he has ‘earned the respect of the existing staff and club leadership’, and they are doing him a tremendous disservice by not informing him. The only thing that maybe could alter this response
is if I was informed that Pat would be getting an awesome package on his way out that would enable him to be kept whole while searching for his next position. And that’s a big maybe.” Another tactic was one of inform if asked, yet protect the club-networking relationship, “Integrity is a strong trait of mine and it helps keep me centered. In this situation I would take the middle road and inform Pat, only if Pat inquired, as it is none of my business. I would not reach out to her as it would be an overt breach. I would also do what I could to assist Pat any way I could in her transition. Over the years I’ve learned never to ‘burn a bridge.’ This is especially true in the close-knit network of private clubdom.” Another more specific approach is, “I would respectfully ask the new manager to inform Pat that he is being replaced.” Most responses were on the side of maintaining the peer confidence. “Chris should want to keep good relations with the new manager. Maintaining the requested confidentiality is a professional obligation as well.” There’s also consideration of the fact that once we leave a club, we need to leave the club. “I would maintain the confidence as requested by my peer. Once Chris departed his former club, he left his right to weigh in at that club.” However, there was common thread that Chris should not inform Pat, yet, maybe the intention was to have Pat informed. “I would not inform Pat of the impending termination. If informed it betrays the confidentially of the matter; would serve to possibly cause Pat to be disruptive and argumentative; and allows Pat to possibly work out a separation agreement/settlement if he leaves without incident. “I am not so certain it was by accident the new manager let ‘slip’ Pat was being replaced. Knowing the bond between Chris and Pat, it is reasonable to suspect that he believed Chris would inform Pat thus easing the difficulty for the new manager to terminate.” While maintaining the integrity of peer confidentiality, one manager had several suggestions: “I would make it known to Pat in one of many ways: 1. Based on our good relationship, I would drop hints urging her to start looking for another job. Best, if I know of a job elsewhere that would fit Pat, I would send her the info and urge her to look into it. Why? Because with new management, change is inevitable etc. 2. If it helps Pat to know in advance for whatever reason, I would mention that ‘rumor has it…’ As the former manager of that Club, I have continued relationship and communications with members and staff alike…’Pat, it just doesn’t sound good…I could be wrong as I’m reading be-
tween the lines.’ All without jeopardizing the source. Yes, I would protect the source…what comes around, goes around! 3. I would have to put my relationship with Pat and my relationship with my colleague on a two-sided scale and pick which one I want to protect more.” Further, “Caring about Pat, I would friendly stress to Pat that she needs to manage the way she is perceived in the eyes of others to protect her work, her position and her relationship with the new GM. ‘Hey Pat, you now have a different manager who views things differently…have a convo with him…try to understand what he wants…there’s a new sheriff in town and we have to do things his way, etc.’ This could have a positive effect all around.” Other responses were to the point. “Leave Pat in a disadvantageous position” or, “For me this is easy- I keep the confidence of the new manager. Business is business and personal needs to stay a distant second. And no trouble sleeping at night either, btw.” This scenario is a real-life issue that has an ending which is relatively happy. As our managers began to respond to the issue, our real-life Chris was given a heads-up on some of the suggested solutions and decided to implement a combination. Chris spoke to the new GM Paul and simply gave some background on Pat, explaining what a nightmare the situation was when Pat arrived and how hard Pat worked to make a tough situation better. And, yes, Pat can be hardheaded, but the key to getting Pat to relax was to show empathy and understanding. Paul was unmoved by the information and continued to recruit for the position. Chris spoke with Pat in order to gain Pat’s perspective on the situation. Pat related, as expected, that things were not good and getting worse. Taking advantage of Pat’s awareness, Chris suggested that Pat might consider alternatives. In the end, Pat gave notice and worked out a very accommodating time-period, always maintaining work integrity. Paul, given ample time by Pat, was able to recruit for the position, find someone suitable and get that person on board shortly after Pat’s departure. By using our CMAA network of managers, Chris gained perspective in solving a significant dilemma in which peer relationships were maintained, as well as loyalty to a friend. And, all ends well. BR
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caleB chriStOpher
technology committee
Caleb Christopher is the director of technical operations at Cino Ltd. He directs a team of Certified Ethical Hackers conducting remote and on-site cybersecurity and vulnerability assessments for clubs and other organizations across the country. He can be reached at: (516) 932-0317, ext. 305 or via email: caleb@cinoltd.com
Cybersecurity Series, Part II It’s OK for Some Things to be Hard
this series is intended to provide topical insights to instigate productive conversations for club boards. Bold keywords make excellent talking points with technical advisors. When I speak about using secure passwords, it’s met in most cases with eye rolling, sighing or recounting of frustrations with remembering them. I get it, but I can’t really change my message. It’s a core tenant of basic security practices. People get dismissive of more than just long passwords. It’s security-related inconvenience in general – especially when related to computers and accounts, so I’d like to highlight the value of difficulty and hopefully alter your paradigm. Let’s start with a story: It’s raining and you arrive home with an armload of groceries to carry into the house. Approaching the door, you’ve forgotten to get your house key out, so you dig for it. Struggling and juggling, a glass jar and several other items crash to the ground. Soaked, you finally find the key. Once you get the door unlocked, you sop inside, frustrated with the whole process. Now here’s an alternate story: It’s raining and you arrive home with the same armload of groceries. Getting inside quickly is no sweat, since you left the front door wide open to make it easy to get in and out. You hurry inside, barely wet, and put away your groceries, patting yourself on the back for how convenient you’ve made your life. I hope you already see where I’m going. It’s OK for some things to be hard. If you came home to see your front door open, knowing no one was home, what would you feel in the pit of your stomach? Would you call the police? We keep our homes and cars locked, even though it might cause us to be stuck in the rain or perhaps lose our keys and be locked out. It is an acceptable inconvenience because we see the value of locks, despite the extra effort required. Security is all about making something difficult for others to access. So if a slight inconvenience to you adds significant difficulty for an attacker, the appropriate course of action should be apparent. Special viSual emphaSiS
Why is it we don’t all feel the same about securing our computers as we do about securing our homes? How sensitive or critical is the information accessible your computer, your phone, and your online accounts? Isn’t that worth some effort protecting? If an attacker can get into your email, they can use it to reset all your online account passwords while you sleep. How much of your life can be controlled from your email account?
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The above is an oversimplified security value formula: The difference between an attacker’s work effort and your work effort to access the same thing is the benefit of a particular security measure. Security measures range from physical access restrictions to long passwords and more. Of course, there is deeper value for you and your club. Following security best practices may yield lower cyber insurance insurance premiums and protect against actual and reputational damage or fines. Demonstrable competence in security can also boost member confidence (tip: avoid security theater, which leads to a false sense of security). See technOlOgy cOmmittee | 89
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2017 BOARDROOM MAGAZINE TOP PRIVATE CLUB PRESIDENTS JEFF BENTON, PRESIDENT | RIVER BEND GOLF & COUNTRY CLUB | GREAT FALLS, VA
JEFF BENTON, PRESIDENT
HUSAM ATARI, GM/COO
Serving as a trusted board member, treasurer and committee chair of the River Bend Golf and Country Club in Great Falls, Virginia, Jeff D. Benton, now in his second term as president, has always made it a priority to integrate the club's storied past with its progressive future. “Jeff is a leader with a vision. But no decision he makes is made hastily. He is an effective communicator and constantly engages with the board, committees, members, spouses, and staff to fully inform his thinking. He trusts in the club's vision and communicates his expectations without feeling the need to micromanage. He has earned the respect of members and
staff alike with his continued service and loyalty to the club,” expressed River Bend's GM/COO, Husam Atari. Benton views River Bend as a customer-centric business, complete with characteristic business issues and an expectation of success. His approach has changed the views of operations as well as how the club looks at the needs of current and future members. Always a proponent of healthy change, his driving motivation is the member's experience. In reaching this end, he champions self-reflection and constant improvement: at the board level, with operations and with himself. Other keys to his success has been his leadership through the annual board and committee orientation, whereby the board, committee chairs and management work together to define the club's goals for the coming year, while allowing the GM/COO autonomy to implement "best practices" as he sees fit. During his tenure, Jeff helped to transform the club’s strategic planning process from a short-range tool to a long-term planning framework, designed to withstand board turnover. Through this overhauled strategic planning process, in 2017, Jeff worked collaboratively to plan for and gain approval from the membership of a major $7 million renovation project that would add more space for members to gather and enhance member engagement. Jeff works as a senior managing director at FTI Consulting solving critical business performance issues. He lives in Great Falls, Virginia with his wife, Julian and three daughters, Audrey, Ava and Madison. An avid golfer, Benton has been a member at River Bend Golf & Country Club since July 2009. “Jeff is an incredible ambassador throughout River Bend. He leads by example and tasks his fellow board members and committee chairs to do the same by getting involved in all the different aspects of the club,” added Atari. "He has been able to translate his vision into a renewed sense of belonging and purpose that is the ‘River Bend' experience, following in the footsteps of those presidents before him." All good reasons why Jeff Benton is one of BoardRoom’s top presidents for 2017. BR
CLEVE CHRISTOPHE, PRESIDENT | THE THORNBLADE CLUB | GREER, SC
CLEVE CHRISTOPHE, PRESIDENT
TIM MERVOSH, GM/COO
President Christophe has been the driving force behind The Thornblade Club’s “Re-Imagined” campaign and delivered an exceptional plan to the membership. His financial models and explanations of the plans were so very thought out but easy for all members to understand. His vision went far beyond the project but years and years down the road to ensure that Thornblade remained relevant to all current members and appealed to the changing demographics of future members. “Mr. Christophe’s leadership is unparalleled. He commands respect and attention as he articulates his points, explains financial models and rationale. Mr. Christophe has worked around the globe and is highly respected by everyone who knows him and others that simply know of him,” offered the club GM/COO Tim Mervosh. GM Mervosh, who joined Thornblade about six months ago, arrived during a significant ren58
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ovation campaign that included the golf course and clubhouse. He worked closely with President Christophe on the club’s plans. In addition, he also was instrumental in two major capital projects in addition to the “Re-Imagined” campaign. “We invested in a state-of-the-art golf course irrigation system and completely renovated our kitchen in the clubhouse with a completely new offering of new equipment and design. “Neither of these two areas are visible to the membership but both of these elements build a solid skeleton to allow our club to build on the infrastructure that is so necessary, and many times neglected,” Mervosh added. “As a result of President Christophe’s work, we’ve built a stronger management team, state of the art irrigation system and back of the house kitchen that serve the members on a much higher and consistent level.” His directive to GM Mervosh has remained crystal clear and consistent. “Do not allow any hurdles to slow your progress or plans to ensure that every member experience is exceptional.” “As GM, I’ve been able to hire several key members of my team in positions that did not exist in the past…to stay laser focused on several key areas. As a result, the needle quickly began moving with an increase in member services and offerings,” GM Mervosh added. Thornblade’s board led by president Christophe is the epitome of a strategic board. It’s laser focused on capital growth… the expenditures. He monitored the club’s net worth and long-range plans to ensure the board maintained its sight set on the horizon. The partnership between the GM and the board is built on trust and a clear message of responsibility for operations. “He is much more than our club president. He is beloved and highly respected by our staff. His generosity is many times overwhelming. His range of knowledge seems endless regardless of the subject matter,” commented GM Mervosh. Born in Savannah, GA, Christophe grew up in Pine Bluff, Ark. His career spanned international banking and private equity investing. Most recently Cleve has been president and chief financial officer of US&S, Inc., a privately-owned firm based in Greenville, SC, that provides facilities support and construction-related services to clients. He has served on numerous public and private company, and non-profit boards. He and wife Cheryl have three children, Jon Scott (deceased), Jean-Paul, LCDR US Navy and Kimberly, MD. BR
2017 BOARDROOM MAGAZINE TOP PRIVATE CLUB PRESIDENTS TOM BRUNTS, PRESIDENT | COUNTRY CLUB AT CASTLE PINES | CASTLE PINES, CO
TOM BRUNTS, PRESIDENT
DAVE WHALEN, GM
The Country Club at Castle Pines, like so many private facilities around the country, has a unique background, history, and traditions, and yet the club is coupled with challenges that are not unique to this industry. This has given President Brunts an opportunity to meet some of the challenges head on. His accomplishments over the past 18 months include reopening the golf course after a tremendously successful renovation project that included the restoration and re-grassing of all 18 green complexes, completion of a thorough and comprehensive membership survey, finalization of a strategic plan, and retaining and supporting the club’s management team while performing a nationwide search for a world class COO/General Manager. He is the first to admit that he is just one member of a team of dedicated and talented people devoted to the success of the Country Club at Castle Pines. It also included the creation of a facility master planning committee, tasked with the overall analysis of the club’s current offerings and recommendations for the board to consider. Should the membership approve the project currently
being considered by the FMPC, the club’s market position could expand for generations to come. He also created a task force to look at “best practices” for club governance and potentially adopt those best practices that could enhance the current governance model at Castle Pines. President Brunts always looks to the Board for their involvement with these initiatives, but he is also emphatic about including the professionals that are employed at the Country Club at Castle Pines for their input and involvement as well. Tom Brunts understands that the position of President doesn’t mean that he should be treated with special attention or be given considerations to which other members are not privileged. He has no personal agenda. He simply listens to the membership and the team and ensures that the expectations from the membership are met and exceeded on a consistent basis, and that the team has the means to deliver on those expectations. “President Brunts listens far more than he speaks. He takes input from any number of sources, he compiles his thoughts, and when he does offer a suggestion, an opinion, or a recommendation, it is clearly one that is in the overall best interest of the club,” offered the club’s general manager Dave Whalen. “He is committed to process, which in club governance and politics is not easy. He has no personal agenda while serving the membership.” GM Whalen, who joined the club recently says, “President Brunts communicated to me that the club has challenges ahead, as most clubs do, but we will need to identify the solutions and bring them to the membership for approval. The process will not be easy, but if and when the members identify the necessary improvements, it will secure our standing in the market place for years to come.” President Brunts insists that a board orientation is conducted so that board members are clear on the roles, and the role of the COO/GM. Included in this orientation are several key documents that Mr. Brunts mentions frequently throughout the year: Mission, vision, values, club objectives, governance checklist, board member code of ethics, conflict of interest policy, qualities of outstanding boards, board/COO activity decision chart etc. Tom Brunts is the president and CEO of The McNally Group, a collection of independent companies that serve the defense and commercial aerospace industries (OEM and aftermarket). Married to DeAnn, and father to Eric and Paul, the Brunts have been members at Castle Pines since 2000. “Make no mistake about Mr. Brunts’ ability to govern a club of this stature properly. He is hyper-focused on what the modern-day club needs to prosper now, and in the future, and he is committed to doing whatever is in the best interest of the club, its membership and member experience,” concluded Whalen. BR
ROCCO J. DIINA, PRESIDENT | THE BUFFALO CLUB | BUFFALO, NY
ROCCO DIINA, PRESIDENT
DANIEL MORIYAMA, GM
“President Rocco J. Diina has shown us what a true and great leader is…through his strength, his tenacity, his energy, his inclusiveness, his wisdom and his insight. He never wavered when the tough decisions needed to be made, yet he just as readily showed respect and kindness to both members and staff alike.” And with that, Sherry M. Sutton, the club’s secretary summed up the contributions of Rocco J. Diina as one of BoardRoom’s top private club presidents for 2017.
“President Diina truly loves The Buffalo Club,” expressed Daniel Moriyama, the club’s general manager and COO. “President Diina has led many noteworthy organizations in his illustrious career, but his service as president of The Buffalo Club has truly been a labor of love. “In a year of transition, he brought the employees of the club together and brought the members of the club together under one vision. He was fair, just, and had to make difficult decisions, but always placed the betterment of the club above all else,” Moriyama added. During the year of transition, president Diina’s tenure included a six-month search for a new general manager, culminating in the appointment of GM Moriyama, while he and Sherry Sutton took on the daily duties of the club management. They focused specifically on one area of the club that has made a notable impact: the employee experience. “Positive change can only be achieved by involvement and commitment of members/board and staff,” president Diina related. With 150-plus staff members, this fundamental focus created a long-range positive impact on the member experience. Their legacy continues with the culture that is being created revolving around the employee experience. Tangible accomplishments included renovating the employee café, forming the employee recognition committee and fostering open communication between departments and the membership.
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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 The year is already off to a busy start with Congress and the President still working to finalize the details of the FY2018 budget, which resulted in a brief two and a half day, government shutdown. Here’s the latest overview of issues affecting the club industry, and what to watch. Demand Continues to Outpace Supply with H-2B Visas: U.S. Citizenship and Immigration Services (USCIS) announced that the H-2B visa cap for the first half of the 2018 fiscal year had been reached on December 21, 2017. This is almost a month earlier than the cap was hit in FY2017. Currently, the H-2B visa cap set by Congress is 66,000 per fiscal year, with 33,000 to be 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 of the fiscal year (April 1 - September 30). According to reports, the Department of Labor has been flooded with more than 4,000 temporary labor certification requests for workers starting after April 1 or later. It does not plan to process and release these until February 20 and will release them in the order of receipt. Based on this influx, it is expected that demand for H-2B visas for the second half of FY2018 will far outweigh supply and that they will be exhausted earlier than last year’s March 16 date. Further, USCIS has released its annual updated list of 83 approved countries whose nationals are eligible to participate in the H-2A and H-2B programs. Effective January 18,
nationals from Belize, Haiti, and Samoa are no longer eligible to participate. Supreme Court Decision Leaves WOTUS Rule in Turmoil: In January, the Supreme Court issued a unanimous opinion finding that challenges to the Waters of the United States (WOTUS) rule will be heard in district courts. This ruling clears up the question of which court had jurisdiction. The Supreme Court found that the WOTUS rule was not covered by Clean Water Act’s § 509 judicial review provision, which lists categories of EPA actions that circuit courts have exclusive power to review. The Supreme Court instructed the Sixth Circuit to dismiss the petitions for review of the WOTUS Rule for lack of jurisdiction. What does this mean? The existing nationwide stay was issued by the Sixth Circuit Court in November 2016. Since the Circuit Court does not have jurisdiction, the nationwide stay will no longer be in place. However, the North Dakota District Court, which does have jurisdiction, had previously stayed the rule in 13 states and that stay remains in place. These 13 states are Alaska, Arizona, Arkansas, Colorado, Idaho, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, and Wyoming. The Environmental Protection Agency (EPA) is still working on the rulemaking procession to rescind the 2015 WOTUS rule. Public comments were solicited last year and due in the fall. However, the EPA has yet to complete the first step in the rescission process that proposes to recodify the regulations that existed before the 2015 WOTUS rule. Stay tuned! BR
from President Diina | 59 The clubs’ member experience has been successfully elevated through communication, transparency, ongoing training and the fostering of the employee culture. President Diina’s philosophy is exhibited by his favorite saying “la familia.” The membership and the staff have renewed and reunited in their relationships. Members consider many of the employees a part of their families, genuinely caring about their wellbeing. The members note that the staff is engaged and attentive, with increased attention to detail and innovation. President Diina and the club’s board have made it a priority to establish a strong governance model into the future. During the GM interview process, it was stressed on both sides that the manager would have the authority to manage the operation with board and committee guidance. This model continues today with active and transparent communication between GM Moriyama, the board and committees.
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Coming from a modest upbringing to such a grand place steeped in great history and stewardship, president Diina relished his position and worked daily to ensure its success. Rocco J. Diina is the retired police commissioner for the City of Buffalo, an accomplished business and law enforcement executive, security firm founder, and community leader. His experiences and contributions in public safety and innovative security management policies are recognized internationally. He and his wife Anna Marie, also a strong club supporter, are proud that their two children, Rocco N. Diina and Rebecca Diina LaCivita are also active members at The Buffalo Club. “Rocco brings passion, vision and a commitment to excellence in every task he undertakes. These qualities were apparent as he led The Buffalo Club through its historic 150th year,” explained former director Linda Dobmeier…a mighty fine way to describe one of BoardRoom’s top presidents for 2017. BR
executive coMMittee
PGA Of America Introduces Enhanced Career Services Scott Kmiec, senior director of career services is leading the repositioned career services department. Don Sweeting, PGA will serve as director of the east Region and Tim Marks, PGA will serve as director of the west region. Reporting to them are the 18 career consultants, listed below with the PGA Sections in their coverage areas: •
Jason Boaz, PGA Illinois, Wisconsin
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Jeff Drimel, PGA Iowa, Minnesota, Nebraska
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Ken Ferrell, PGA Aloha, Southern California
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Keith Fisher, PGA Kentucky, Northern Ohio, Southern Ohio, Western NY
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Kelly Gilley, PGA Northern Texas, Southern Texas
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Jonathan Gold, PGA Metropolitan, New Jersey, Philadelphia
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Kathy Grayson South Florida
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Monte Koch, PGA Pacific Northwest, Rocky Mountain
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Bruce Lubach, PGA Southwest, Sun Country
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Mike McCollum, PGA Georgia, North Florida
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Michael Mueller, PGA Carolinas
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Michael Packard, PGA Central NY, Connecticut, New England, Northeastern NY
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Carol Pence, PGA Northern California
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Todd Smith, PGA Michigan, Indiana
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Keith Soriano, PGA Colorado, Utah
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Greg Stenzel, PGA Middle Atlantic, Tri-State
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Doug Turner, PGA Gateway, Midwest, South Central
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Kevin Walls, PGA Alabama-NW Florida, Gulf States, Tennessee
the pga of america is repositioning and strengthening of its career services department. To better serve employers, PGA members and individuals seeking to gain employment within the golf industry, PGA career services has increased the size of its professional staff, while adding new resources and tools designed to promote jobs in golf nationwide. The renaming of PGA career services – formerly known as the PGA’s employment department – reflects a shift in emphasis to help golf industry professionals over the entire span of their careers. To accomplish this new objective, the number of PGA career consultants has expanded from 10 to 18, and their individual territories are now more focused. This affords the career consultants an opportunity to spend more time in their respective coverage areas. The PGA’s long-term strategic plan and the importance the association is placing on increasing resources at the section level have inspired these changes. The PGA is committed to making sure that PGA members and golf industry professionals are prepared and equipped to advance their career path to the highest level. “Having 18 PGA career consultants in the field, all with great experiences in different parts of the golf business, gives them a chance to spend more time building relationships with golf course owners, operators and private clubs, and better understand their hiring needs in all facets of the industry,” said John Easterbrook Jr., PGA chief membership officer. “We know that the best work is done at the local level, where our consultants can really understand the needs of an area and then communicate what they’ve learned across the association.” The launch of a newly enhanced job board on PGA.org. highlights the addition of a wealth of resources and job-finding tools designed both for individuals seeking employment in the golf industry and for employers looking to find the most qualified candidates. Intended for positions at golf facilities and within the industry at various levels, the new job board offers increased ease of use for both employers and applicants. Additional resources available through PGA Career Services include career consulting, resume review and job placement outreach, among others. BR MARCH/APRIL 2018 | BOARDROOM
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gOrDOn welch
executive coMMittee
Gordon Welch is president of the Association of Private Club Directors (APCD). Welch served eight years as senior vice president of CMAA and also general manager/COO of country clubs in the U.S. He can be reached at (918) 914-9050 or gordon@apcd.com
Seven Deadly Sins of Club Governance as a board president or general manager/chief operating officer, there are seven deadly sins that can completely jeopardize your relationship with the board and the club’s membership.
First, collaboration is very important. You will be sharing delicate or controversial information with each other and you must ensure trust and commitment. However, there are times that communication and trust aren’t there. Indifference: Boards that act with indifference to concerns of management or those of their members are walking a thin line. Boards that don’t respond to concerns of the members or professional staff will have regrets. Members with concerns or complaints with their club should be taken seriously. Even if the issues are coming from a known complainer. Sometimes people just want to be heard. Other times you may have an issue that your management team needs addressed but the board doesn’t respond. Take things seriously and give them sincere consideration. Regardless of the issue – do your job. Don’t get bogged down in indifference. Confusion: Occasionally, board members do not fully understand what they are there for or what the organization’s purpose is. This is often resolved through a board orientation. Boards should drive the organization’s strategy to enable it to reach its goal within the bounds of its purpose. I’ve seen boards that decided that they should build new bunkers, greens or facilities because they had the money to do so, rather than consciously following the club’s strategic plan. The board is responsible for setting the vision and mission and following governance structures. They maintain accountability for strategy and share responsibility for strategy with the management team. Their support for other projects needs to be exercised through the longrange plan. Impatience: Board members go beyond enthusiasm for their role, especially when they are new, believing they are going to be a “mover and shaker” of the status quo. They do not always take the time, however, to learn what is already underway and the motivators and blockers to change within the organization. Their lack of patience creates many unintended negative consequences. 62
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Board members should be enthusiastic and should be, at times, agents of change. However, it is best done within a framework of collaboration characterized by data-driven respectful debate in preference to opinionated argument. Politics: Boards that operate along factional lines with mutually exclusive agendas can impinge on the club’s progress. This characteristic is usually the end of progress and does not benefit the club. I’ve seen and experienced the political challenges during renovations and additions. I’ve witnessed tennis members outraged that funds were going to the golf course as their interests were minimalized. Most of the time everyone walks away with funding if a proper strategic plan is in place. Board members should set up governance practices and recruitment practices that encourage debate and discourage politics. Politics can end relationships and even end employment. Indiscretion: Board members share confidential information without authorization. It is highly unethical and sometimes illegal for board members to divulge the contents of board meetings to anyone without express permission. This is currently the third largest legal issue today. The executive committee and any other board members have no special rights to disclose information without agreement. The club should have an appointed spokesman, usually the president but in circumstances including but not limited to crisis communication, the spokesperson may be someone with specific communication skills and operational knowledge. The spokesperson should be made aware of what they can and cannot divulge. Board members who repeatedly commit indiscretions should be disciplined including dismissal from the board. Disruption: Do you have a renegade director that tries to influence or disrupt the meeting? This is an issue in many clubs. A primary task of a board is to make decisions, based on information board members acquire through reading, presentations and asking questions. Board members need to feel comfortable in deciding, and it is important that any question that needs answering be asked before voting. The more conSee executive cOmmittee | 72
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ricK laDenDOrF
Wellness committee
Rick Ladendorf is the president of Prevo Health Solutions, Executive Producer of the AMERICA’S HEALTHIEST CLUBS© Network and Founder of the Wellness Project™. Contact Rick Ladendorf at (949) 933-5470 or rick@americashealthiestclubs.com or rladendorf@prevohealth.com
Three Reasons to Form a Wellness Committee your club’s long-term survival may depend on how well your club embraces wellness and adapts to the trends in food, fitness and wellness! And recruitment, retention and usage are the top three reasons every club should form a wellness committee, period. Unfortunately, many clubs have yet to understand the importance wellness has on the long-term sustainability of the club and the industry, which is precisely why it makes sense to form a wellness committee. Wellness is very personal and each of us have a different definition and perspective on what wellness means. While many universities and organizations have developed wellness pillars (physical, emotional, social, intellectual, spiritual and environmental attributes), very few clubs focus on what really matters - the individual’s belief system. If one believes proper nutrition and regular exercise can and will reverse or prevent chronic illnesses, then one will seek out healthy foods and recreate to stay healthy. On the other hand, if one believes in living life to the fullest without considering nutrition and exercise, that person is not likely going to be eating from the salad bar and it is only a matter of time before they appear on the resignation watch list for one of many medical reasons. what DO yOu Believe?
Do you believe wellness activities, events and programming will improve the member experience? Do you believe a culture of wellness will improve usage, spend and member engagement? Do you believe healthy and happy members will pay dues longer, refer more members and most importantly pay dues longer than a member that lives an unsustainable lifestyle? We believe, wellness is a mindset that when ignited with purpose and fueled with passion it creates a cultural shift unique to the club. Who sits on a wellness committee and what do they do? These committees should be comprised of members and department heads, including the general manager, fitness director, golf pro, tennis pro, membership/member services and F&B staff. A minimum of three members should represent the club. The main criteria for members serving on the wellness committee should be experience in the medical, fitness, rehabilitation, culinary or event planning industries. 64
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The wellness committee’s primary role is to represent the membership’s interests and at a minimum the committee should evaluate food, fitness, golf and tennis trends that affect member recruitment efforts. Likewise, the wellness committee should evaluate current member usage, spend and participation data to better understand how and why members are using the club. The data will help the committee identify the type of programming and amenities needed to support likeminded members and their interest in “clubs within the club”, lectures, events and activities. Among other responsibilities, wellness committees should identify new ways to engage members by evaluating apps and tools that can help connect and engage likeminded members. Last but not least, the wellness committee should evaluate and have input regarding the use of local service professionals and hospitals and their relationship with the club (i.e. to provide onsite resources and speakers for club hosted programs and lecture series). reaSOnS FOr a wellneSS cOmmittee
• Recruitment. It’s important to identify, understand and discuss trends in food, fitness, golf, tennis and social activities. Department heads should provide the wellness committee with departmental insights to stay ahead of the game and make recommendations to the board to help attract the club’s desired members. • Retention. Wellness committee members should evaluate the membership’s interests and create small groups i.e. clubs within the club, which represent like-minded members. The club staff can then develop programming and activities to support the membership’s interests outside of golf and tennis. • Member usage. Build it and they will come is very true, as long as the programming is relevant. The wellness committee is an ideal forum to evaluate member usage data that will help the committee identify a manageable watch list of the members that are lapsing, and conversely reward the exceptional members. Unquestionably, a wellness committee will encourage better collaboration between members and staff to better understand how to attract new members, retain current members and engage members in relevant activities so they continue to pay dues. BR
Clubs of Distinction
WILLIAMS ISLAND CLUB - AVENTURA, FLORIDA
PEACOCK + LEWIS AIA MASTER PLANNING + ARCHITECTURE + INTERIOR DESIGN
N PALM BEACH 561.626.9704
W W W . P E A CO CK A N D LE W I S . CO M
NAPLES 239.631.2332
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anne KauFman Anne Kaufman is vice president and senior corporate counsel for Troon Golf, L.L.C. and can be reached at akaufman@troon.com
legal committee
Legal Implications of Members Behaving Badly those of us in the private club business know a thing or two about discrimination complaints against golf clubs. Although the laws that apply to private organizations prevent many of these claims from resulting in a lawsuit, the recent headlines of alleged harassment should be a wake-up call. There’s no discrimination when it comes to the industries affected by the trend, which include hotel, food services, retail, manufacturing, health care, finance, education, real estate and more. So, it is more important than ever for employers to effectively address claims of discrimination, harassment and hostile work environment. Most often, these “bad acts” are committed by current or potential employers and co-workers, but what happens when an employee is being harassed or mistreated by a private club member? Employers have a duty to protect their employees from discrimination, harassment and hostile work environments, regardless of who perpetrates the alleged bad acts. For example, in late 2016 a federal jury ordered Costco to pay a former part-time employee $250,000 for failing to adequately protect her from a customer’s sexual harassment. The customer’s alleged actions included frequently asking her out on dates, hugging and touching her without consent, and filming her in the store. The employee also claimed that the customer continued to harass her after she reported the incidents to her managers. Costco argued that it took remedial actions to assist the employee, but unfortunately failed to provide conclusive evidence that it did so. All allegations against a member by an employee should be promptly and thoroughly investigated. While such investigations can be uncomfortable, it is in the club’s best interest to conduct a thorough investigation, which includes interviewing all persons at issue, including the employee and the member. An investigation should also include interviews of potential witnesses, such as other employees and members. Thorough notes and documentation should be taken throughout the investigation, but particularly during the interviews. The specific allegations should be addressed during the interviews; it is important for all parties to be given an opportunity to respond to the allegations against them.
If possible, the interviewer should end the interview by asking the interviewee if they have any additional information or documentation that may be relevant to the investigation. An answer of “yes” may provide you additional information for your investigation that you may not have otherwise received. An answer of “no” may be helpful if an interviewee provides information after a remedial decision has been made that may have affected your decision. A thorough investigation should be a club’s first defense, and may be its best defense, against a possible EEOC claim or a lawsuit, and should not be taken lightly. Because of the nature of the investigation, a club may be inclined to require the employee, member, and/or witnesses to agree to strict confidentiality in order to protect the integrity of the investigation as well as the parties involved. However, caution should be taken regarding employee confidentiality since it may run afoul of the National Labor Relations Board. Under Section 7 of the National Labor Relations Act, an employer may not restrict an employee from engaging in “protected concerted activity.” Such activity includes discussing the terms and conditions of the employee’s employment, i.e., the details of the investigation. Therefore, a broad confidentiality requirement or policy that prohibits employees from discussing the specifics of an investigation may be unlawful unless “corruption” of an investigation would likely occur without it. A generalized concern about protecting the integrity of the investigation is not sufficient. Before instituting confidentiality, a club should consider asking legal counsel. As stated before, the club has a duty to protect its employee. During the investigation the club should consider taking remedial actions to lessen the opportunity for further harm to the employee, but such actions may not be adverse to the employee. This may include giving the employee the option of taking time off work with pay during the investigation, but not requiring the employee to use paid time off or sick time. This small expense may be worth it in the long run to avoid possible further harassment by the member. Remedial actions may include suspending the member pending investigation if the allegations are severe. Whatever remedial actions are taken, they should be thoroughly documented. See legal cOmmittee | 72
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michelle tanzer Michelle Tanzer, Esq. serves on the NCA board and is legal counsel to the Club Spa & Fitness Association. Michelle arbitrates club related disputes for the American Arbitration Association’s (AAA) National Golf Industry Panel and authored “The Club Litigation Book: Keeping Clubs out of Court.” Best Lawyers in America in hospitality law since 2015. Phone (561) 866-5700 email: Michelle.Tanzer@Gray-Robinson.com
legal committee
Sexual Harassment
Is it a Topic “Too Hot” for the Boardroom? allegations of sexual harassment are rampant these days and the issue is red hot. while politicians, movie producers and television stars are attracting the most media attention, it appears no industry is immune from attack. Among all the concerns that club directors may tackle during the term of their service, complaints of sexual harassment will steal the headlines like no other. There is nothing like allegations of sexual harassment when a club is concerned. It’s more than just money on the line. If a lawsuit is filed, the reputation and confidentiality of the members as well as the club’s assets are at risk. Nevertheless, some boards are convinced that the issue is “too hot” to touch, or simply assume that the offending type of behavior never occurs at their club. Other boards, however, are becoming proactive and have decided to address sexual harassment and the related conduct before it becomes too late. Sexual harassment can exist among various relationships and can take different forms. It may exist between superior and subordinate club employees, among club employees generally, or between members and club employees. When employees are involved, the harassment can be in the form of a “hostile work environment” or constitute “quid pro quo.” In this context, a hostile work environment may exist when an employee receives sexually related or unwelcome comments or conduct which result in an interruption or interference with the employee’s work performance or otherwise create an intimidating or offensive work environment for such employee. Offending conduct may range from actual physical contact or may be verbal, in writing, in electronic communications or even in various social media. In contrast, quid pro quo may exist when a manager or other superior offers a raise, promotion or other benefit to another employee in exchange for a sexual demand. When the behavior is restricted solely to members, principles of employment law would not apply, but the club may still be liable under other theories of tort (civil) law.
What the club does to prevent sexual harassment and what it does when allegations are made is very important. For example, prevention measures such as adopting an acceptable behavior policy for both employees and members is critical. Employee related policies should be documented in writing and included in the employee handbook, and member-related policies should be documented in the club’s bylaws or other governance documents. The next step is ensuring that all such policies are consistently enforced. A protocol for handling the complaint must be established and communicated to all concerned. Commercially operated confidential hotlines are available to club industry professionals and should be considered. A proper investigation of any form of sexual harassment is necessary to determine the appropriate actions to be taken, and when the circumstances justify, immediate disciplinary and correction action must be taken. Depending on the circumstances and the nature of the offending conduct, notification to law enforcement authorities may be necessary as well. In addition, when the allegations are made, the disciplinary processes require applicable state law as well as the club’s governing documents must be followed as well. These processes include protecting the accused’s due process rights, such as adequate notice in writing of the charges, an opportunity for a hearing and an opportunity to show cause why disciplinary action should not be taken. Undoubtedly, no one wants to risk alienating a “very friendly” member or employee. However, it would be far worse to be cast in the leading role in a sexual harassment case. Given the wave of victims coming forward with old and new charges, the embarrassment these allegations are causing and the public condemnation falling upon those choosing to look the other way, club boards may have no choice but to clear the smoke around this hot topic and expose the fire it may be concealing. BR
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miKe phelpS Mike Phelps is principal and co-founder of Pipeline, a membership marketing agency for private clubs. For more, visit pipeline-inc.com.
MeMBeRship committee
How to Get Fewer Leads, But Better Leads “we don’t want to appear like we need new members…but of course, we want new members.” It’s something every club struggles with: Essentially, how can a club develop a marketing program that creates fewer membership leads, but better membership leads? The answer is almost always through better targeting. Broad targeting can be done geographically by zip code, financially by income and net worth, demographically by age and gender, or psychographically by targeting specific “personas” derived from interests, affinity groups, online behaviors and purchase histories. Anyone who knows anything about targeting already knows those things. But here is what few people know: The key is to make sure that your leads are coming to you for the right reason. You want them to be coming to you for that thing you know you can deliver better than anyone else. If they’re coming for any other reason, it’s a lower quality lead. The key is to micro-target through marketing copy. Use brandable chunks. A brandable chunk is not a slogan, a tagline or even a positioning statement. They are usually something you wish that people would believe even though they probably won’t. While a good positioning statement differentiates you from your competitors in a meaningful way, the problem is that positioning statements are usually about the big picture. They tend to be all-encompassing, relating the totality of your club. By contrast, a brandable chunk is a memorable, micro-positioning statement about just one aspect of your club. Consequently, you can easily have a dozen or more meaningful, brandable ‘chunks’ of highly memorable messaging. Brandable chunks are memorable, micro-differentiators that: 1. Paint vivid mental images. 2. Employ unusual word combinations. 3. Communicate succinctly. 4. Have meter (rhythm) so they tumble off the tongue, like a song lyric. If you use brandable chunks in your web copy, nurturing emails, marketing collateral, club tours, and through all your marketing messaging, your brandable chunks will bring your web presence, your lead generation, and your brand experience into perfect alignment. Your brand identity will be strengthened and your close rate will rise. Your prospective members will finally see you in 3D. Here’s typical copy you might find on a club website: 68
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“Tucked away along Florida’s best coast, XYZ Country Club is a private, member-owned country club community located near several of the area’s best beaches. We offer the finest in services and amenities, including a championship golf course, state-of-the-art tennis, fitness and wellness center, and a full calendar of social events and activities for all ages. XYZ is more than just a community, it’s an active lifestyle enjoyed by friendly, welcoming members.” Here’s how we refined it using brandable chunks: “This is a place to feel more alive. Where white sugar sand beaches and green grass golf courses make perfect neighbors. Where time resets, perspective shifts, and deep breaths no longer feel forced. And despite an endless list of things to do, see, play, learn, taste and enjoy – the everyday conversations with fellow members are the best part of every day. This is XYZ Country Club.” Now let’s look at the memorable, brandable chunks we’ve created that can easily be repurposed in web copy and marketing communications with your prospects: 1. A place to feel more alive. 2. White sugar sand beaches and green grass golf courses make perfect neighbors. 3. Where time resets. 4. Where perspectives shift. 5. Where deep breaths no longer feel forced. 6. An endless list of things to do, see, play, learn, taste, enjoy… 7. The everyday conversations are the best part of every day here. Look at those seven chunks. Imagine each of them as a headline on a web page. Now imagine each as a way to close an email. Imagine smiling at a prospect on a tour of the club as you communicate another brandable chunk. This is the key to aligning your messaging with your web presence with your brand experience. People tend to do what they hear themselves say. You need to make sure you are saying exactly the right things. Unlike a slogan or a tagline or a positioning statement, brandable chunks are never predictable because you have so many from which to choose. Brandable chunks are opening statements, closing statements and simple explanations of benefit to a prospect. They are carefully worded pieces of a bigger marketing message. They communicate your values and beliefs. They show where your treasure is hidden. A club’s brandable chunks are the anthem of its members. Would you like some help crafting yours? BR
TED ROBINSON Ted Robinson is a partner with Private Club Associates and can be reached at (478) 741 7996 or via email: tcr@privateclubassociates.com
MEMBERSHIP COMMITTEE
When You Need a New Idea “Almost always, great new ideas don’t emerge from within a single person or function, but at the intersection of functions or people that have never met before.” – Clayton M. Christensen It is not uncommon for a membership director, membership committee chair or club board member, in moments of low membership movement and growing frustration to ask,”Where Can We Get Another Idea?” Of course, this is not limited to membership marketing, but that’s our topic for today. There are many general and easy to access, but perhaps not-so-easy-to-implement ideas and processes. One, of course, is to engage an outside membership marketing consultant. A number of excellent, qualified and successful private club membership specific marketers whose expertise and experience may well fit your club’s needs are available. They may or may not fit into your club’s budget, even when you conduct the “We can’t afford to hire them” against the “We can’t afford NOT to hire them” analysis. Over time we’ve has searched for effective ways to gen-
erate new ideas and what has worked best is a variation on brainstorming. Going way back we learned Benjamin Franklin at age 21 got his friends together to form the Junto, a weekly meet-up or “mutual-improvement club” to generate ideas to improve the world. In the early 20th century Napoleon Hill (Think and Grow Rich)identified the master mind alliance, later shortened to the master mind group. According to Hill: “No two minds ever come together without thereby creating a third, invisible intangible force, which may be likened to a third mind [the master mind].” Later, Brian Tracy named a similar process “Mind Storming” and Karyn Greenstreet teaches how mastermind groups generate creative ideas through brainstorming with peers. PCA’s process has evolved using ideas from these writings to a variation on the focus group concept- very much like a master mind group or alliance. In general marketing SEE MEMBERSHIP COMMITTEE | 72
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TOM WALLACE
SAM LINDSLEY
BOARDROOM BASICS AND BEYOND
The Key Principles of Team Development - Part II Why is it some clubs seem to consistently attract and retain the ‘best and the brightest’ talent in all levels of the operation, while others seem to be in ‘always hiring’ mode?
There are key proven team engagement, development and mentoring principles that can help you attract, enhance and retain your top employees. The key principles are: 1. Turn faith into trust 2. Have a process 3. Engage your team 4. Cultivate your team 5. Challenge your team Part I of this series (BoardRoom magazine, January/February 2018) cover the first two points: Turn faith into trust and Have a process. Now the discussion turns to: Engage your team: Team engagement is not about satisfying your employees; satisfied employees are there to get, and engaged employees are there to give. A satisfied employee makes a personal commitment, and an engaged employee makes a mutual commitment with the organization. Engagement is about capturing your team’s heads and their hearts. It’s about capturing that discretionary effort that only engaged employees give. That special something extra. Seven out of 10 employees are disengaged or actively disengaged. Studies have shown the number one way to boost engagement is for the team to trust their leader, followed by wanting leaders that are competent to have integrity and care about the people they lead. It’s no longer just what you do. It’s why you do it that matters. You probably heard that a happy employee is a productive one who can boost the bottom line. How much? Here are some numbers • 33 percent higher profitability (Gallup) • 43 percent more productivity (Hay Group) • 37 percent higher sales (Shawn Achor) • 300 percent more innovation (HBR) • 51 percent lower turnover (Gallup) • 50 percent fewer safety incidents (Babcock Marine Clyde) • 66 percent decrease in sick leave (Forbes) • 125 percent less burnout (HBR) Cultivate Your Team: This one’s easy for the modernday employee. If they’re not growing, they’re going! A su70
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perstar employee seeks advancement, looks for learning opportunities and wants to achieve. If you can’t provide a pathway to growth and development and support those goals, you will lose them to someone who will. And why wouldn’t you support that effort? The better that employee becomes, the more you benefit from their added expertise. The more you support productivity, the more productive people become. Sometimes it’s not enough to just support their goals. Sometimes you have to provide the pathway. If you truly value their education, and you should, give them options to pursue. Mentor your teams. Show you believe in them by providing educational funding, rewards, and incentives for educational achievements, and demonstrate your pride in them through deserved promotions and acknowledgments. Strong leaders recognize opportunities to develop influence. There are leadership tipping points all around you. The great among us sense them and grab ahold of them. These opportunities allow the leaders to step forward and lead the organization in its time of need. This not only shows the leaders belief in them, but it starts to help build their membership, board, and the team’s belief in them as well. Challenge Your Team: Ideas and feedback drive successful organizations and teams. Sometimes ideas may steer us in the wrong direction, but without innovation, without providing your team the freedom to fail, you often close yourself off from the inspirational. Challenge your team to provide ideas, with no thought to failure. Remind your team that there is no failure, only a temporary misdirection. Nurture new ideas and truly listen and consider them. Sometimes even hidden inside a “crazy idea” is a nugget of genius. Implement a vehicle where team members can easily share ideas not only in meetings but an idea board or a suggestion box. There are numerous platforms – both traditional and digital – where ideas can be shared. Flesh out the ideas, discuss them as a team and decide if the ideas are worthy of implementation, but without judgment. Praise the contribution even if the idea is not the right one, right now. Great leaders truly lead. It’s not enough to be the boss, to make the tough decisions, to have the hard conversations SEE BOARDROOM BASICS | 72
LEGAL COMMITTEE BY ROB HARRIS
Court Rejects Neighbors’ Attempt To Hold Golf Course Liable For Flooding Confronted with the physical reality that water flows downhill, the downhill situated Williams family nonetheless tried to hold the uphill situated Portage Country Club responsible for flooding that caused a basement wall in their Akron, Ohio home to collapse. Recently, an Ohio appeals court rejected this argument, holding that, on the issues presented, Mr. and Ms. Williams had presented no factual basis to support their claims. As the court noted, “By all accounts, the storm in July 2013 was severe and caused widespread flooding. Based on his review of newspaper articles and national weather service reports, Portage Country Club’s expert characterized the storm as a ‘flash flood.’ “The assistant superintendent for the golf course was deposed and stated that he encountered multiple roads that were closed because water from the storm that day. Comparing two storms that he experienced while living at 169 Hollywood, Mr. Williams testified in his deposition that, ‘in a short window of time, 2013 had much more water than 2011.’ He further testified that, following the 2013 storm, ‘many people that [he] spoke with said that they had water in their basement[s]’ and ‘[he]’d venture to say that half of Akron probably did.’” The court rejected claims that the course caused the flooding by changing the topography when it expanded from a nine hole to an 18-hole course in 1918 and that the storm drain was deficiently small to handle the floodwaters. Turning to the Williams other claim – that Portage Country Club had failed to appropriately maintain the catch basis – the court found that the claim was lacking in factual support. As the court explained, “The Williamses make the conclusory assertion that ‘because there was a flood, the catch basin must have been clogged.’ They do not, however, point to any evidence in the record to support this assertion.… ‘The mere fact that damage occurred [is] not, in and of itself, proof of negligence.’… Moreover, the fact that something could be a cause does not establish that it actually was the cause in a given instance…” The fact that the catch basis was clogged after the flooding did not establish that it was clogged before the flooding. Therefore, as the court held, “Construing the evidence presented most strongly in favor of the Williamses, one could conclude that the catch basin was clogged following a flooding event in 2011 and again following a flooding event in 2013. “But, as noted by the trial court, the Williamses presented ‘no evidence’ regarding ‘the state of the catch basin near in time or immediately prior to the July 10, 2013 storm.’ Having failed to present any evidence that the catch basin was clogged before the flooding, the Williamses have not demonstrated a genuine issue of material fact remained regarding the maintenance of the catch basin.” BR MARCH/APRIL 2018 | BOARDROOM
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from Executive Committee | 62
tentious the issue, the more it behooves the president to stand firm and not allow disruptions in the boardroom Micromanagement: Boards get involved in detail that is not their responsibility, but rather, the responsibility of management. Therefore, boards should have knowledge of their responsibility. The board, of course, is still accountable for all risks. They cannot delegate accountability. But the cost of micromanagement can be huge. Boards that micromanage from Legal Committee | 66
If there is enough evidence to support the employee’s allegations, then remedial action should be taken against the member immediately and whatever remedial actions are taken should be thoroughly documented. Any suspensions or remedial actions should be taken in accordance with the club’s bylaws and other governing documents. However, from Membership Committee | 69
terms, a focus group is used to measure reaction to a single issue - a new product or pricing, etc. We use the term “discussion group” to diffentiate our multi-topic research and idea generating processes from a one topic feedback (focus) group. We have had excellent success generating ideas and harvesting member research. At your club you emulate this process by facilitating a series of discussion groups to probe what your next steps could be to enhance your membership marketing program. Many members (but certainly not all) believe it is a privilege to participate in a process to make the club better - to be a part of enhancing the club’s growth and prosperity by contributing and sharing observations,thoughts and ideas with fellow members. from Boardroom Basics | 70
and to expect excellence. Great leaders know how to elevate their teams. They know how to make the right team selections, then take that leap of faith you have voluntarily engaged in and turn it into trust. Great leaders are self-aware and encourage their team to be the same. They learn from each other. Great leaders have processes in place and the tools and resources their team needs. Great leaders cultivate a culture where people and ideas are developed. Great leaders know they are there to support the team, not drag them to mere obedience, but hold them up to be outstanding. 72
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have trust or confidence issues that must be addressed. If there is no trust or confidence in your GM/COO either get some coaching or decide to change. You and your GM/COO will feel relieved. These are a few of the “sins” of the boardroom and unfortunately, there are many more, but the bottom line is this: Operate as a professional board. You are responsible for the direction and governance of a multi-million-dollar operation. It is not to be taken lightly. We all make mistakes and when it happens I hope you have a leader on your board to keep everyone in check. BR the club must eliminate the risk of further bad acts against the employee as soon as possible. Clubs should strongly consider engaging or conferring with legal counsel whenever an allegation of harassment is made by an employee. While no one wants to spend the costs associated with a lawyer, it may cost far less money in the long run, particularly if the allegations are severe. BR
Optimally there are be six to eight discussion groups consisting of eight - 12 members and/or spouses each, recruited from different subpopulations of the membership (Millennials, high users, newest members, department heads). The cocktail hour with great hors d’oeuvres, is a great time to schedule your sessions. Begin with a short introduction - why we are here? Then your first question can be,”If you were the Emperor, what would you do to attract more members to our club?” Continue with questions that follow the participants’ responses. Keep good notes and provide feedback to the members. If you manage this process effectively you will be amazed at the abundance of new ideas for your next membership campaign. BR
Create the culture today that leads to attracting and retaining the best and the brightest and be open to the fact that you might already have that team if you only follow these guiding principles. As Peter Drucker reminds us, “Culture eats strategy for breakfast.” BR Thomas B. Wallace III, CCM is a partner with Kopplin Kuebler & Wallace. He can be reached at: Tom@kkandw.com Sam Lindsley is a consulting & search executive with Kopplin Kuebler & Wallace specializing in food and beverage operations. Sam can be contacted at (216) 509-2250 and at: sam@kkandw.com
ROBERT SERECI Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, IL. He can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org
LEADERSHIP MOMENTUM
Turning Photographs into Visions
Becoming Comfortable with the Unknown - Part I While attending high school in Switzerland, I discovered the fascinating world of photography.
My parents made it a point to travel frequently, and today, with my own family I share that passion of adventure as we travel the world with our children, as often as possible. And so, my desire to capture all of our travel adventures through the camera’s lens has developed into my personal passion. Like most traveling photographers, I started by shooting beautiful landscapes. I remember traveling to the Matterhorn in Zermatt and snapping breath-taking photos, and feeling great pride in those first photos, until stumbling upon someone else’s picture, just like mine, on a 10-cent postcard in a local drug store. After realizing that there was nothing unique about my photos, it was time to point my focus in a different direction. I wanted to capture something special… something that no one else was doing. By asking myself what makes the world unique, I arrived at the conclusion that what truly defines various landscapes is not the land, but its people. Instead of focusing my energy on mountains, monuments and the tourist traps, I decided to turn to the streets, capturing humanity within its environment. Now, when photographing people, I certainly don’t mean famous starlets or hero athletes like some paparazzi… but real, salt of the earth folks, living life on its terms in real and often raw settings…photography that’s commonly referred to as street photography. If you ask my wife what kind of pictures I take, she will tell you that they are photographs that no one would ever bother to frame and hang in their living room. To me, they’re works of art, and I hang them wherever I can get away with it. To most, the correlations may not be obvious, but with introspection, I found that in my pursuit of street photography, the perspective gained from it has contributed greatly to my abilities as a club manager. BEING PREPARED FOR THE UNEXPECTED
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contingencies is practical, whether you’re planning a clubhouse renovation, or planning to take to the streets to snap society in its rawest forms. When traveling to the National CMAA conference in New Orleans, I scheduled a photo session in lieu of parading on Bourbon Street. I commandeered a cabbie, and a large bodyguard who experienced the tragedy of Katrina’s aftermath. He was someone who had been forced to evacuate from his home in the ninth ward, basically ground zero of some of the worst flooding in American history. This gentleman described his and his neighbors’ experiences as he took me around the abandoned landscape of rotted apartments, still filled with family heirlooms and abandoned personal belongings. Each location was literally littered with stories that I captured in still photography. On another occasion, in Budapest while shooting, I happened to capture two homeless children throwing cobblestones at one another during an argument. That series of images depicts a 15-year old child with a bloody head wound, courtesy of his playmate. During a trip to Istanbul, a young man chased me, throwing his shoes at me in anger because I was taking pictures of his children. He didn’t know that his mother had given me her permission. I’ve also been kicked out of a slum in Bangkok and welcomed with open arms at leper colony 200 miles outside of Agra.
Club management is very much the same as my photographic travels in that no two days, or any one location, are the same and very little becomes routine. I once had a club president tell me, after we finished a major remodel, that I must be looking forward to things getting back to normal. The reality is that there is no normal. If human nature is not poking you in the eye, there is always a troubled employee who is ready to take you on, or a drunken guest of a member who will lend a hand in making your life chaotic. My photographic experiences have prepared me to anticipate the unusual and becoming comfortable with the unknown, and have assisted in forming my approach to handling difficult situations in my professional life. TAKING CALCULATED RISKS
If you want to accomplish something unique and memorable, you have to be willing to take on risk. Last year in Delhi, in exchange for photographing a local snake charmer, I agreed to handle a small green snake instead of the cobra that served as my part of the photographic subject matter. After handling the snake, the charmer took him back with great laughter as he explained to me that the little green “worm” is responsible for killing whole herds of cattle, and that I was safer handling the giant cobra! I have unintentionally eaten dog meat on several occasions on the back streets of Shanghai, shared
grasshoppers with the locals in Bangkok and knocked back a few fertilized duck eggs with some villagers outside of Hanoi. I’ve been entertained in the homes of total strangers and walked through benevolent shelters all around the world. To most, this may seem unappealing – taking risks with total strangers, in strange and challenging lands – but to me, it feels necessary, anchoring my connections with humanity and supplying the impetus for my still view of the world. I apply the same philosophy as a club manager. In general, clubs are culturally rigid and as a result are very risk averse. Moreover, club boards and members have a very low tolerance for failure and as a result, club managers take less risk so innovations and out-of-the-box thinking comes to a standstill. While many argue that clubs with greater recognition and resources can afford to take more risk, the exact opposite is true. When a small unrecognizable club fails, the city or state may be aware. However, when a club with a global brand fails, the whole world will know. In my opinion it takes exponentially more courage than resources to think outside the box. BR In part II of this series, Robert Sereci writes about meeting people during his travels and the time needed to get to know someone before ‘shooting’ them and how that relates to ’taking care of people’ as a private club general manager.
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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.
INNOVATIVE IDEAS
Impactful Videos Increase Member Engagement and Event Attendance Interested in improving your club’s social media and email marketing of content we were looking for. Their creative team engagement and boosting your event attendance? The team at Boca pulls it all together for us.” Club members appreciate the style, quality and conWest Country Club in Boca Raton, Florida may have just the solution. venience of the news clips. “We’ve learned to keep the The club recently introduced video format to its email and social video to no more than 80 seconds in length,” said Linmedia marketing and their results have been dramatic. The email derman, whose team learned through experimentaopen rates have grown to 40 percent and the club has experienced tion with the format that they lost their audience a 30 percent increase in event attendance as a result. when videos ran longer than that. Boca West began with news style video messaging and has exMembers can save the videos and refer back to panded the success into other member communications. them later to for dates, times and details of club Boca West worked with an online service to develop short-form, events. According to Linderman, improved results in news-style videos that are delivered across all their platforms, inengagement and attendance were almost immediate. cluding the club’s website, social media channels and internal tele“Members are much more engaged and involved since vision channel. The new video format has been especially powerful we introduced the videos,” he said said. in the email marketing, as the videos update the club’s 6,000 memNewstation conveniently posts the videos directly to bers on internal promotions, upcoming events, construction projthe club’s YouTube channel and Facebook page, sharing ects, and more. a link the club can use email marketing, on its television Like the rest of us, Boca’s members are increasingly accessing inchannel and on digital displays throughout the club. formation on their smartphones and tablets, and the video format “With the opening of our new golf and activities has proven to be attention-grabbing, as well easy to share on social center last year, we introduced digital signage to the networks and via text messaging. club, providing another means of reaching our mem“The feedback from the members has been fantastic. Our members bership with important information,” said Linderman. don’t like to read lengthy material - they would rather watch! They get “The success of the program has led to other quick, bite-sized information that is visually compelling” according to changes, as well. “The video format was so popular Matthew Linderman, CCM, COO and general manager. and impactful, that we have since expanded our offerRecognizing the importance of quality in their member communicaings. We now share instructional golf videos, tennis tions, they turned to Newstation.com. Founded by news professionals, and pickle ball tips, and snippets from our recent club the service produces scripted, edited and produced video segments events with our membership,” Linderman added. from their remote studio. The club prepares a press release, and from “The success of the program has led to other this, Newstation delivers a video script within 24 hours. changes, as well. The video format was so popular and Once approved, Newstation’s professional news anchors proimpactful, that we have since expanded our offerings. duce a polished news segment with the help of proprietary editWe now share instructional golf videos, tennis and picking software. leball tips, and snippets from our recent club events Linderman told us, “The relationship began with an initial meetwith our membership,” Linderman concluded. BR ing where Newstation’s team worked with us to determine the type
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INNOVATIVE IDEAS
Adding A Wow Factor to Improve Women’s Health And Create Camaraderie The short, six-week, seasonal The introduction of an innovative new fitness program at Philadelphia Country Club has structure allows flexibility for busy added a good deal of wow factor for members. female club members who want to Women on Weights (WOW) is a six-week series of classes led by a certified fitget in gear and socialize at the ness instructor and held seven times per year in the club’s fitness center. It’s a presame time. Participants are invited dominantly a women-only circuit training regimen, though any and all members annually to celebrate with a cockare permitted to join. tail party for the WOW group, Classes are held at various time slots each day for the duration of each session made up of women of all age and members are directed in the use of self-supported weights and weight maranges and interests. chines, combined with high-intensity interval training. These intervals can be done WOW has provided the club with on cardio machines, but when weather permits, WOW takes to the club grounds significant outreach to their female for short outdoor runs. membership, engaging them in new WOW’s circuit training was designed around the fitness center’s existing equipways as they focus on their health ment, so the overhead costs are limited to the tracking books the club prints and proand wellness. Its popularity has vide for the now 60 participants who sign up for WOW. The club-within-a-club has largely grown by word of mouth. gained popularity and grown exponentially with the female membership in the seven Members often invite their friends years since its inception and has evolved into the central social circle of the club. to the cocktail party, where they The overwhelming popularity of the WOW program has brought recognition to are wowed by the fun and fellowthe needs of female members, combining fitness activities and social time. ship of the group. The club also “Women on Weights was initially designed to help jump-start members’ fitness places ads in their digital and print regime, in the style of a “boot camp. But it also serves as a social group for the fitnewsletter and on collateral placed ness-focused members who may not be active in other areas of the club,” says through the fitness center and Ashly Ryan, the clubhouse manager. locker rooms. “The WOW sessions provide our women members with something to look forward to, and a friendly camaraderie so they feel like they’re not going it alone in the gym. It’s a value-added program that helps to keep members active and engaged in club activities,” says Ryan. For the men, the fitness center has similar events throughout the year, including Power Lunch. For all members, the club’s fitness center boasts an in-house fitness manager and an athletics director, Pilates, yoga and fitness classes, weight machines and more. BR
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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.
INNOVATIVE IDEAS
Investment in Fun and Games Creates a New Revenue Stream A chat with Ben Lorenzen at Champions Run Country Club in Omaha, Nebraska is sure to reveal his passion for his work. As the club’s director of aquatics & fitness, he runs the aquatics program and the pool café in summer months and as creative director, he and another employee handle the marketing across the entire organization. Throughout the year, Lorenzen is focused on creating value-added events and activities for both adult and junior members, handling the graphic design, social media, and marketing across the organization. Whether it’s archery war, bubble soccer, human bowling, or zip lining, he’s worked hard to make the club a hub – and a one-stop shop – for entertainment and activities for members of all ages. With all these inventive activities on offer, the club’s CFO suggested an investment in the various equipment they’d been renting. The high rental costs often called their event breakeven point into question. To generate revenue and realize a profit, the club’s team opted to purchase many of these entertainment packages, rather than continuing to incur high rental fees. Since making that decision, the club has acquired its own inflatable hamster balls, zip lining equipment, foam-tipped archery equipment, and more. Many of the games are fast and exciting, allowing up to 16 participants at a time. The Gauntlet is an inflatable obstacle course that floats on the water. It’s 40 feet long, and members can climb up a 14-foot wall and then slide down into the club’s swimming pool. On holidays like Memorial Day, Labor Day and the 4th of July, junior members attend club-managed events and play the games for free. These events used to run the club about $3,000 to $4,000 in rental fees. They now use the new equipment for free. They also offer birthday packages, corporate events, and entertainment options that members can rent from the club for special occasions. “The members enjoy the unique activities and are eager to use the club for these types of parties, instead of going to outside vendors for their needs,” said Lorenzen. The club also leases the equipment out to members, non-members
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and local elementary schools, and taking them offsite to generate added revenue. Members in charge of their middle school events often find the added service useful, since the games and activities come complete with the club’s service staff, who travel off-site to host and run the various games. Rental rates to schools and parties are $300 per hour for a single game or two games for $500 per hour. “It’s easy for us to set up and tear down in less than 30 minutes. We use the company maintenance truck to transport the goods. We load everything up and charge for the service,” said Lorenzen. To staff external events, Lorenzen has money in the budget to hire two to three high school students who work at the club in the summertime. “The advantage of owning it is that now we always know that the equipment we need is available in the quantities we need. We control the variables, and we know that it’s clean and in working condition,” says Lorenzen. In short order, the equipment has quickly paid for itself and has now realized an additional revenue stream. It is used for about six to 12 external parties per year, and the equipment is rented at an average rate of $800 to $1,500 per event. Back at the club, members are billed at a much lower rate, for an average of $10 per person. Lorenzen says the external events help to support the club events, keeping them cost-effective for members, who feel they’re getting a great deal. “I want our club to be the ultimate entertainment playground. I want Champions Run to be the full, one-stop shop for everything: parties, corporate events, holiday events. I want members to make this the center of their social life,” said Lorenzen. BR
INNOVATIVE IDEAS
Pop-up Dining and Theater Tickets Make for an Evening of Mystery Members of Hendersonville Country Club (HCC) in North Carolina were recently delighted with their club’s fun pop-up dining event. The special evening combined local theatre tickets with an elegant, fine dining experience at a surprise, off-site location. Members were treated to an evening full of surprises in that the venue was revealed to members on the afternoon of the event. The mystery continued with a production of an Alfred Hitchcock favorite performed at the historic Flat Rock Playhouse theatre in Hendersonville, North Carolina. Advertised in the club’s newsletter two months before the event, HCC’s pop-up dinner became the talk of the club, as intrigued members tried to guess what the off-site destination and theme would be. “The event created a lot of buzz, due in part to the very limited space and also because of the secrecy around the undisclosed location. As the event approached, members jokingly offered to pay me to find out where the dinner would be,” said Dayna Kelsey, CMP, HCC’s clubhouse manager, pictured below, bottom right. The club made the event an exclusive offering, with just 40 tickets available. These sold out in just two short weeks, well in advance of the pop-up event date. A local 1950s-style pharmacy turned diner played host to the event, though HCC prepared the meal and then the club’s talented culinary team
added their finishing touches at the diner. Club staff dressed to match the venue, with paper butcher hats for the men, and poodle skirts found at local thrift stores for the female staffers. Everything needed for the dinner including tableware, flatware, tablecloths, and flowers were transported to the venue using the company truck and staff vehicles. “Our staff was equally excited to try something new and challenging,” said Kelsey. Since the diner is normally closed for business in the evening, the club was able to rent it at a rate of just $300, plus a few hundred dollars for added kitchen staff from the restaurant. Members were notified of the secret location on the afternoon of the event, with a personal phone call made to each member by Kelsey herself. “The venue had only recently made itself available for special occasions, so we were one of the first to use the space in town, which helped keep the secret location under wraps,” said Kelsey. At a price point of $75 per person, the fine dining menu included a choice of soup or salad, a choice of salmon or steak for the entrée, and a choice of dessert. The club played up the theme with appropriate names and served a caramel and chocolate affair aptly named the “Golden Ticket” for dessert. Members could also opt for home-baked cookies and milkshakes served in an old-fashioned glass bottle from the Eisenhower era. “Overall, the pop-up dinner was extremely well received. Members were shocked that it was at the local diner. We asked them to park near the theater, and everything was within walking distance, so getting to the event was quite easy,” said Kelsey. BR MARCH/APRIL 2018 | BOARDROOM
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DAVID W. LACEY David W. Lacey is a two-term member of the board of governors at Philadelphia Cricket Club and chair of the tennis committee. David can be reached at: dlacey@hirshorn.com.
HR COMMITTEE
Balancing– A Key Factor to Consider When Viewing the Effects of ACA on Clubs 3. ACA has established three dominant feaThe notion of balance was completely missing in the fourth quarter of 2017 when Congress debated replacing ACA or Obamacare, as Republican Senators and Rep- tures in employer provided healthcare which are: 1) No pre-existing condition exclusions resentatives like to call this federal act. 2) Dependents are covered to age 26, and 3) The commentary about ACA was largely negative. I don’t intend to deTen essential health benefits, including lower bate the pros and cons of ACA. However, I am introducing “balance” as a premiums for wellness enrollment and prereference point for you as employers. ventative actions, e.g., colonoscopy. I like the notion of balance because it is neutral in its application. Balance is a “condition in which different elements are in correct proporThis kind of balance will continue in 2018 tions, allowing an object to remain upright and steady.” for private clubs because the dominant feaDespite the rancor about healthcare so evident in Congress between tures described in point number three will the two major parties and between the Executive Branch and the Legislacontinue because they enjoy widespread tive Branch late in 2017 and early in 2018, private clubs are likely to exsupport from: U.S. citizens among the 310 perience balance firsthand as they manage the effects of ACA in 2018. million who have coverage; legislators in Balance is a practical notion and is far removed from any fanciful ideas both parties; and among employers who first that could govern healthcare in 2018. Balance, as applied to healthcare at began actions to reward employees who a private club, means: took preventative actions. 1. After eight years of ACA, there are 310 million Americans enjoying In 2018 private club employers can expect healthcare coverage through employer provided (178 million), Medicaid these features to continue with overwhelmenrolled (62 million), Medicare enrolled (52 million) or individual covering positive support, including the insurance age (18 million). carriers. Whether it is ACA in its current 2. Private clubs, when offering coverage to their employees and deform or in a new version, these features will pendents, are firmly members of the employer provided group. be part of the package: • Dependent coverage to age 26. • No pre-existing condition exclusions. • Continue emphasis on and premium savings for prevention and wellness programs. • Continued growth of health savings accounts (HSAs) because of favorable tax treatment. These four features will be included in healthcare legislation that may be proposed during 2018. Although I do not have the credentials of seer or predictor of the future, private clubs can be confident about these four features becoming permanent. In short, these four are here to stay in 2018 and going forward. At private clubs you can count on these four provisions as permanent! BR 80
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from Club Facts & Figures | 18
example, clubs with debt could encounter loan covenant issues if certain initiation fees have to be deferred on their balance sheet rather than recorded as capital contributions. Benchmarking data associated with clubs could become more challenging if one doesn’t know the impact of ASC 606 on each of the clubs in a given data set. And while this article has focused solely on initiation fees, a similar analysis likely will be required for capital assessments. What should GMs/COOs be doing now to get out ahead of this new guidance? Your club’s CPA firm already likely has raised the topic during your last audit, and you probably had a footnote in your audited financial statements alerting the readers that ASC 606 was coming. So certainly GMs/COOs and controllers should be engaging in detailed conversations with their auditors and other advisers as the effective date nears. Club audit/finance committee members also likely are aware of the standard from their experiences in the corporate world where the impact has been debated since the new guidance was issued. Executive Committee | 42
CONNECTION One iGEN described themselves as: “Connected, crazy busy, fast moving, self – sufficient, Netflix watching, food obsessed, sassy human being with a short attention span.” Their lives are online. The youngest members of iGEN are graduating from college this year. They have been eager learners at the university for four years, supplementing their book learning with experiential learning in internships and work experiences, as well as through online connections. What did we learn about iGEN in their undergraduate years? They are clearly linked to their idevices that connect them to the world. Many do not hesitate to check their device in any social setting – and while at work. Connecting via social media in part adds to iGEN’s self-esteem and selfworth, based on how connections view them. These connections influence person choices (as in who to hang out with on social media). Because they are so intimately tied to the connections via social media, as to who they are and how they connect, social media affects the happiness of iGEN. iGEN is the first all – digital generation. They want what they want in a speedy fashion, particularly service. iGEN has already sampled work in private clubs as caddies, servers, dishwashers, and other starting – level positions. They may already have decided whether a career in private clubs is appealing to them. When iGEN comes to work, they also have their idevices in their pockets. iGEN has 24/7 access to ideas, information, knowledge, news, organizations and their brands, and people the world over, through their idevices. One iGEN said: “People are interested in my stories, so I share them on Snapchat”, where the post lasts for 24 hours then vanishes.
These committee members may well be able to provide clarity on the impact of ASC 606 on their club’s particular set of facts and circumstances and should be part of the discussion as well. We already have heard of instances where audit/finance committee members have been challenging management and club auditors on the impact of this new guidance and what they are doing to implement it. So, ladies and gentlemen of the Night’s Watch, now is the time to prepare for implementation as “winter is here!” BR RSM US LLP has created a Revenue Recognition Resource Center (http://rsmus.com/our-insights/revenue-recognition-resourcecenter.html) which contains more detailed discussions on this topic, including a white paper discussing revenue recognition considerations for member-owned private clubs. Philip G. Newman, CPA, CIA, CGFM is a partner with RSM US LLP and is the firm’s national industry leader for private club services. In that role he works exclusively with hundreds of private clubs across the United States. Newman was also the recipient of BoardRoom magazine’s Award of Dedication for 2016. He may be reached at Philip.newman@rsmus.com. Tammy Tassitano is a partner in our national club industry team. She can be reached attammy.tassitano@rsmus.com
The digital skills of iGEN could certainly assist private club general managers and chief operating officer s in connecting to members from various generations via social media. The connections are defined by each generation. For example, Baby Boomers may prefer email blasts by the club. Millennials may want Facebook. iGEN may prefer Instagram, Snapchat, or Twitter. An iGEN advisor to the COO/GM about social media could be a wise investment. In Part II, we’ll review the final two Cs…college and careers as we begin to understand the impact the iGEN will have on the private club industry. BR from Green Committee | 51
then you need to have 14 full time equivalents on staff. Otherwise your maintenance standards are not consistent and there is compromise taking place on your golf course. • Are we looking at opportunities to increase efficiencies through more efficient purchasing in other line items to offset escalating labor costs? We have seen courses and clients save significant dollars through detailed operational audits, purchasing/using more efficient equipment, adjusting agronomy plans and evaluating purchasing options through different suppliers. We know that labor /staffing always has been and continues to be a major issue that needs addressed. The key is to make adjustments where needed and embrace change. While it is not easy, the need to evolve how we hire, train and retain employees (HTR) is the most important investment you make as a supervisor of your golf course. This is a big focus for us this year and we look forward to sharing more information on this important issue in 2018. BR MARCH/APRIL 2018 | BOARDROOM
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GREGG PATTERSON Gregg Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com
TRIBAL MAGIC
Creating a Certified Supervisor Program - Part I The What The Need
We who manage are in the business of identifying, developing and stimulating the upwardly mobile, the talented ones – people who, through the exercise of their talents, make our clubs flourish. Many of these talented ones, the upwardly mobile, want to become the supervisor. They want the status, the money and the big shoulders needed to make things happen. And managers want these, the upwardly mobile, the talented ones, to become high octane supervisors because great supervisors create productive teams that make members happy, stimulate business and generate the big bucks. But, and this is a BIG but, most of the upwardly mobile don’t know nothin’ about the business of supervisor. They’re enthusiastic puppies with unrealized potential, wagging their tails and running in circles. They have the hunger but lack the knowledge to do supervisor right. And the tragedy for the upwardly mobile is that they’re often left in the wilderness, fated to wander around for years, blind, flopping and fumbling, slowly learning by doing. But in these competitive, fast paced, high turnover times, learning by doing “ain’t enough” – too slow, to frustrating, too demoralizing, too aimless, too hit-or-miss. A plan’s needed. Rigorous and demanding. Instruction’s required. Homework assigned. Tests given. Validation earned. The question is: what do these, the upwardly mobile, need to know to become a certified supervisor, a talented departmental leader who’s got the goods, the passion, the education, the experience and the reflective mindset to do supervisor right? “Doing supervisor certification right” requires knowing The What that’s needed and The How of delivering The What that’s needed effectively and efficiently. This article, in part one, shares a basic outline of The What that needs teaching and, in part two, The How of teaching the what’s needed. Together these two articles provide the foundation for an internally generated “loving hands at home”, personalized and customized Supervisor Certification Program that’ll develop the gifted, strengthen the club and add joy to the management journey. IDENTIFYING “THE WHAT” THAT’S NEEDED Before the supervisor certification program can begin, a 82
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comprehensive outline of “what needs to be known” must be developed by the management team. Here’s a preliminary “ground zero” list of the topics required in a proper supervisor certification program. ORIENTATION TO “STUDENT-ING”
• Reflective practicioning. The program is experientially driven, and attendees will be using their actual work experiences to explore the issues addressed during the certification process. • Taking notes during class. What to write, when to write and where to write it. • Taking notes “on the job” using the pocket note book. Operational notes will be taken each day and discussed during class. • Digesting notes taken and organizing those notes for future use. Each student will create an “idea bank” of notes taken for future reference. • Curiosity and the questioning imperative. Students will be required to ask questions during class and throughout the day. • The interactive experience. Questions will be asked and supervisors trainees will be required to answer during the classroom sessions. ORIENTATION TO LEADERSHIP AND THE SUPERVISOR’S ROLE:
• The supervisor-as-leader model. The “template” for evaluating any leader. • The supervisor as coach / teacher. Providing continuous observation and comment. • The supervisor as mentor. Providing advice and insight to team members. ORIENTATION TO CLUBDOM:
• The WHY of clubs. The purpose of clubs and how the why gets delivered. • Types of clubs. Examples of other clubs within the community. ORIENTATION TO THIS CLUB’S CULTURE:
• Governance. Key issues in The Bylaws. • The “why” of the club. The mission statement. • Goods, services and programs offered. Reviewed by department.
• The facility and grounds. The walking tour. • The aesthetics of the club. How the club is “expressed” visually. • Approved behaviors – house rules. Right behavior for members and staff. • Finance. Where money comes from and where it goes and how the coming and going is documented. • Symbols and stories. Stories people tell and things they show others that capture the essence of this club to others. • People. The profile of members. The admissions process. Longevity. Noteworthy members. ORIENTATION TO THIS CLUB’S GUIDING PRINCIPLES:
• The principles of service. Service principles applicable to all employees in every department. • The oft repeated “this is us” sayings. (i.e. “We’re in the happiness business.” Mission from God). • Social KPIs. Gestures and behaviors that staff can use to create relationships. ORIENTATION TO THE CLUB’S DEPARTMENTS, BUILDINGS AND GROUNDS:
• Knowledge of the facility. Touring the clubhouse and grounds. • Knowledge of staff names, faces, department. Knowing supervisors and staff. DOING HUMAN RESOURCES RIGHT –THE HR CYCLE:
• Hiring. The profile of the ideal staffer. How to find staff. How to interview. How to select. • Orienting. To the club. To the department. • Training regimen for newbies. Standard training practices. • Remembering names. The why and the how. • Daily upbriefing. The beginning of shift. • Daily debriefing. The end of shift. • Ongoing recurring training. Daily incremental training program. • Counseling sessions. Scheduled and unscheduled alone time with staff. • The employee manual. Including standards of behavior, benefits programs, pay policies, etc. • Money. Raises. Bonuses. Pay ranges per position. • Discipline. Suspension and dismissal. • Employee law. Basic “must dos” and “can’t dos.” • Showing appreciation. Public recognition of performance. • Showing caring. Celebrating good “life moments” and sympathizing with challenging “life moments.” SCHEDULING AND MONITORING LABOR. GUIDELINES.
• Firing. When and how. GOTTA KNOWS:
• First Aid basics. Examples. Equipment and procedures. • Emergency Procedures. Emergencies you’ve known or anticipate.
• Critical Contact Numbers. Fire, medical, club president, manager, plumber, etc. TRAINING, DEVELOPMENT AND NURTURING TACTICS:
• Facilitation. Asking questions that stimulate interaction. • Daily upbriefing. When, where and what. • Daily debriefing. When, where and what. • This is the job department specific template creation. The responsibilities of each job within the department. • Encounter mapping the department. Staff/member “touch points” during a member visit. • Creating and using coaching / training photos. Show and tell photos. • Creating and using orienting / training videos. Show and tell videos. • What’s wrong with this room walk through examinations. Team walk through “point and talk. • What’s wrong with this photo” teaching. Photos showing flawed practices. • The weekly department meeting. Where, when and the standard agenda. • Round tabling for ideas and engagement. Facilitating group discussions for solving problems. • Sexual harassment training. Detailing the “can dos” and the “no can dos.” • Assessing employees and the team. Creating and using “scorecards” for objectively evaluating performance. Daily, weekly, monthly and annually. • Symbols of caring. Birthday cards, graduation cards, thank you notes, “Sorry you’re sick” cards, etc. • The one-foot rule. Visiting other departments daily – with a team member. • Creation and use of department story book. Recording and discussing stories of the day. • Financial literacy. Reading a financial – front page. Reading a financial – department. Understanding the assumptions within the financials. Departmental KPIs. Club KPIs. Sharing of financials with staff. • Responding to “complaints” and “suggestions”. Standard “response” tactics. GOT WHAT – NOW HOW
There’s lots to learn if an upwardly mobile supervisor-tobe wants to do supervisor right. Step one is done. The must know topics have been identified and are ready to be fleshed out into training modules by the management team. Step two will focus on the classroom experience – identifying the people, programs and practices needed to educate the upwardly mobile in the must knows of supervisor certification. Read on…and enjoy the journey!!! BR
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from Publisher’s Perspectives | 10
“For example, I often have the conversation with boards about the food and beverage operation, i.e. ‘Would you open three restaurants in the same building or within a mile of one another in a town of 400 and expect them all to turn a profit?’ Many new board members don’t realize that clubs are in the dues business and that means membership engagement, an active events calendar, amenities that give reasons to come to the club and social programs to promote a sense of community…not just a great golf course. “However, once the armchair quarterback is given the ball, the realities of the day-to-day management become clearer. They begin to see just how delicate the relationships of membership engagement/satisfaction, employee morale and fiscal management are for the long-term benefit and financial stability of the club. This requires professional management and time dedication, which most board members do not have,” Reid Pennell added. In her words, “No, it’s not a valid approach for operating a private club today. There has to be one clear leader. Everyone needs to know where they are going. Without that, people tend to set their own direction and that direction may be in conflict with each other’s departments. “The three-prong management approach can create silos, miscommunications happen frequently, members are pitted against one another, the team synergies are lost, and the budget spending can become skewed in one direction, which can upset the balance.” Boards operating their clubs is “largely an underappreciation of the complexities of the job and the failure to understand what the GM/COO does when board members aren’t on site,” commented Frank Vain, president of the McMahon Group, based in St. Louis MI. “A lot of people want to go in the hospitality business for the same reasons. It looks simple but it’s not. Mark Twain once said something to the effect that there is nothing so dumb as smart people operating outside their area of expertise. Club boards are populated with smart, proactive people and they think they can fill whatever gap is created by not having a professional manager. “I’m not aware of any pros for this kind of governance. If everyone is in charge, no one is,” Vain emphasized. “Someone needs to be the quarterback who sees the whole field. The department managers have full time jobs and skill sets that make them a great golf professional or superintendent or a great chef. Those same skills may not translate to a general view or a schedule that promotes broader thinking. “Professional managers coordinate activities across all departments, so the lack of a head, means a lack of coordination, and boards need to be aware of the environment in which they operate. Without an industry professional at the helm, they will lack exposure to the trends and professionals that can help their club succeed,” Vain added. 86
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“It can help a club in financial trouble to quickly make a difference in their labor cost,” Reid Pennell explained. “However, without a clear financial recovery strategy, the club runs the risk of a finding itself in a poorer financial situation quickly and risking the long-term viability if the club loses memberships along the way because of the club’s inability to keep up with maintenance and updates. “A manager on site daily keeps tabs on inventory/payment/receivable controls, membership satisfaction, and employee relations. Without this direct oversight, expenses rise, revenues flatten or decline, and the bottom line effect is often much worse than what was saved on the manager’s salary,” she opined. Board turnover also brings constant change to the staff in terms of leadership – like who’s leading us today? “This can create a culture of staff and management turnover, which goes against the private club service staple of personalized service.” Reid Pennell added. “This can be costly to a club if we trust the studies that say employee turnover costs approximately 30 percent of the employee’s first year earnings. Beyond that, without a GM to implement the strategy, changes to the board can also bring changes to the club’s strategic direction, which is confusing.” Sometimes it also means that this decentralized governance will encourage the staff and managers to cater only to the board of directors to the detriment of the entire membership. “Often, the likeability of an employee influences the BOD more so than their work skills or employment contribution, which is what a manager would consider, along with the likeability factor. Without management in situations like this, labor cost can inflate as the club retains unproductive employees or accepts substandard job performance,” Reid Pennell stressed. “Working without a GM can lead to every board member managing every employee without one consistent message and no chain of command. Without a clear leader the club will experience the creation of silos, hurtful gossip and real conflict at the club. “Employee turnover will increase, membership satisfaction typically declines, and inexperienced, uninformed or general lack of knowledge about management of a club shows up in about a year, at which time the cost to recover is generally more than the cost of a GM’s salary,” Reid Pennell expressed. Jerry McCoy, principle in president, Clubwise, LLC and dean of education for BoardRoom Institute, says that while the industry has grown and is making a transition to the GM/COO model, there are still some clubs that use what he calls ‘The Decentralized Club Governance Model.’ He offers his reasons why. First, these are probably clubs in smaller markets where time stands still, and it is the tradition. Occasionally a young
gun will join the board and urge change, but to no avail. Normally these clubs have not participated in industry professional associations for their key staff. “Second, their club is penny wise and pound foolish in that they do not want to spend the money on a GM. We haven’t had one before and we don’t need to spend the money now. Just don’t raise the dues. “Third, they may still be using this model because they have tried to progress, but the GM concept failed, but not for lack of trying. It was because the membership didn’t like losing control or having the GM direct activities. “Fourth, the club hired a series of general managers who were a bad fit because they did not know how to change the club culture or could not build the trust to do so. These GMs were either too strong and generated enemies, or too weak, and were believed ineffectual. Many times, it wasn’t the GM’s fault. It was the club’s fault because the club was unwilling to pay the proper salary to entice the right GM. It’s not uncommon that clubs in middle markets who are having some success have general managers that make more than many members. That can be a political problem if their compensation package becomes wildly disseminated. “Fifth, the club has strong PGA and GCSAA members who like their position within the organization. They don’t have a manager looking over their shoulder. They tell the committee what they want, react to what the committee wants and feel they have a direct line to power, via the board. The PGA has always felt that the pro should gravitate to the GM posi-
tion anyway. The PGA teaches GM skills to their members for that very purpose. Sixth, the club employs a GM, but that person doesn’t handle full GM duties. It may be a case where the manager is told not to worry about the golf course or golf program. The pro or superintendent may be a sacred cow. It may be the case that a strong committee person does not want to give up control. Whatever the case, the GM is hamstrung in fulfilling their complete duties. So, for any or all of these reasons, there are still some clubs operating under a decentralized governance model. “However, there has been significant change in our industry and there are two reasons for this,” McCoy added. “First, the professional associations are driving progress and change to a more traditional corporate management model. Secondly, there is a changing of the membership within these clubs as older members leave or die and younger ones take their place. With younger members comes more progressive thinking and higher expectations from their management team. They too are pushing for a more traditional corporate model. This change has caused many managers who have been living in the past to lose their jobs as they have not kept up with the current trends.” Nan Fisher, administrative manager and the person keeping track of everyone at Kopplin Kuebler and Wallace, has worked and talked with literally thousands of club general managers and club presidents in her 19 years with the firm, offered this observation. ➤
from Publisher’s Perspectives | 87
“We think the premise of raising this question or the editorial focus could go something like this . . . Finally, is the threelegged stool of club governance dead? Fisher expressed. “I thought we were past this in the industry. Based on my experience in dealing with clubs, boards, except in very rare instances, should never be running the operations in their clubs. “We have spent all of our years guiding our client clubs and the club industry toward ‘best practices’ and the general manager/COO governance model. We know the threelegged stool model of governance does not prove successful for the club and the candidates. It is an outdated governance model that has almost become extinct, we hope,” Fisher added. “If clients ask us to do a search based on that governance model we believe in good faith that it is our duty as professionals in this industry to educate the board on new and best practices,” explained KKandW principle, Dick Kopplin. “If we cannot convince them what is good for their club, we decline to do the search as we see it as a no-win situation for the club and the candidates. “A recent client is a perfect example,” Kopplin added. “The club president contacted us about doing a club manager search. We met with him and he tried to make the case for this style of governance, but we flat out told him we could not be successful placing a good candidate in that governance environment.” “He was convinced,” Kopplin said and today his club operates with the GM/COO model. The days of the board running the club are almost over, thankfully,” opined Kopplin. So, there’s consensus…the board operating the club on a day-to-day basis isn’t in the cards today… to wit: “Some 20 percent of clubs have gone out of business since the 1990s. Society is telling us something…as in, people don’t value clubs like they once did. There are many other good options out there for socializing and recreating. Board service is no longer about deciding the tee prize at the member-guest golf tournament. It’s about providing a relevant experience in the face of changing demographics, economics and tastes,” offered the McMahon Group’s president, Frank Vain. That, of course, likely means a continuing evolution of private club governance. “Today’s boards need to be thinking strategically and developing plans that lead to growth and reinvestment in the club. That is a big job, and one that is impossible to do if board members are spending all their time thinking about day-to-day operations,” Vain continued. “In addition, there are a whole host of legal/human resource Issues, performance reviews, terminations, etc. that cannot be managed professionally and consistently by a volunteer board. How does the club coach and evaluate performance when there are new directors over each department every year? 88
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“This creates a legal nightmare when terminations eventually happen, and the employment files are empty. Ultimately, professional management is an investment, not a cost. If that is not the case at the subject club, the answer is to find a more effective manager, not to abandon the system,” Vain added. “The progression of club governance to the CMAA Club Governance Model is undeniable at this point,” injected DeLozier. “In addition to CMAA, National Club Association, BoardRoom magazine and others are proving highly effective in board governance training and education. “One by-product of the most recent recessionary cycle … has been the appreciation that expert managers are highly valuable to their clubs. In tough times, trustworthy and steadfast management means the difference between financial success and failure for clubs. Club managers were never more valuable than during tough times. The key is to align authority with accountability,” DeLozier added. Reid Pennell also suggests the GM/COO will continue and there will be expectations. “However, the expectation of the boards will be that these managers have strong financial acumen and different business skills than generations before. They will demand that every manager is professional and a top contributor, not just well-liked by members. A GM who can do the following will keep the club strong and thriving: • Communicate a strategy and implement it throughout operations with the mission/vision and values seen at every level through behavior, actions, decisions, and communications. • Work smart with technology, finance, marketing and strategy coming together in every way possible to serve the needs of the member and protect their valuable workforce. • Keep the club organizationally healthy with low employee and member turnover, high productivity of employees, high employee morale, minimal confusion (at all levels) and minimal employee politics. “The traditional two-tier corporate structure where we see the board of directors setting strategy and policy and the management team carrying out the vision is successful because it separates ownership and management so that the interests of ALL shareholders are protected,” Reid Pennell stated. “It works because together they maximize shareholder value. In short, the board should make the right decisions for the club and the GM decides how to implement those decisions in the right way. Together, they keep the club strong, relevant and financially sustainable for generations to come.” In Frank Vain’s opinion, the future also might hold other options. “There is an emerging system that’s the opposite of what we are exploring in this article, and that’s a fully empowered management acting as the de facto club president and the board overseen by a chair,” Vain explained. “This makes a lot of sense in terms of empowerment, execution, continuity, etc., especially at larger clubs where the job requirements are more akin to that of a CEO than a general manager/COO.
“This is one of the reasons, in my opinion, why we are seeing a growth in clubs operated by management companies. This creates a firewall between board and management, and perceptions of depth and a contract for performance forces boards to back off operations and spend their time on strategy. We like the system where that happens with the professional manager, but human nature being what it is, a corporate structure tends to set some clearer boundaries,” he opined. “Today’s GMs need to have the ability to build a team of capable professionals. That ability starts with leadership, and not just technical knowledge in one or more areas of club management. Certainly finance is critical,” outlined McCoy. “But to be a successful GM they must have the trust and confidence of their boards. Everyone has to understand that they are in it together as a team working for the best interests of the club and membership. The membership must trust that the leadership and management have their best interests at heart. “Great clubs have a vision – build a plan to accomplish that vision and communicate that plan and on-going accomplishments to the members. So, is the decentralized method of governance have a place in today’s market? Sorry it is DOA.” Jeffrey Morgan, CEO of the Club Managers Association of America (CMAA) is also of the opinion that “the threelegged club governance model is dead” and the GM/COO) model is gradually evolving into the Chief Executive Officer (CEO) model. “That the sophistication of clubs and clubs continued growth in unique ways demands special skills. These are skills members don’t have because clubs are a unique business model,” Morgan explained. “You need to have an intimate understanding of the dues’ model, member needs, future member needs and the ability to keep a club evolving to serve your current and future membership. You are doing this while continuously understanding your competition for members’ attention and all while adding new members that could also change how the club is evolving. from Technology Committee | 56
There are myriad benefits of security, though often difficult to quantify, especially from your IT guy. For an insightful read, lookup “Security’s Value Proposition” from CSO Online. So, what to do now? To begin with, if you can be considered important in any way, you should be using 2factor authentication on every account you can. Do this today. As for your club, request a discussion with your IT department or service provider about the CSC Top 20, which lists the most effective controls to reduce security
“Would you hire a customer of a major consumer brand to run the company just because they are a user of the product?” Morgan queried. “The answer is absolutely not. So why would any club board think hiring a member is a good idea?” PUBLISHER’S FINAL THOUGHTS In my many years in the private club industry, I have never seen a club operate successfully with board members overseeing the operations for any length of time. Board members usually are not educated about the private club industry and the private club business model. In essence, they’re not qualified to make many club decisions, especially on a day-to-day basis. Many board members are successful business man and women…intelligent and skilled as successful business executives in their chosen industry. However, generally they’re are amateurs in the club industry and have no particular training nor skill set to properly manage a club. In the private club world non-profit private clubs also are open to conflicts of interests. Think about it ... board members (who are also some of the owners of the club and the club’s customers) have fiduciary responsibilities. How do they handle these responsibilities properly? Homeowners associations, not surprisingly, similarly face this challenging structure. The position of the general manager is critical to overcome conflict of interest and to focus on executing the strategic plan, prepared through the strategic planning committee and the board itself, and approved by the membership. I know of one club in California’s Orange County that fired the GM and now is run by board members. One of the board members called me, frustrated. Why? Because the board continually focused on menu items or the type of potato on the menu, rather than the meat and potatoes of a private club – collaborative governance operations, membership issues and multiple assessments, and the club’s member experience. At least, that’s the way I see it. BR John G. Fornaro, publisher
risk. Agree on one at a time and pursue each as a little project. Quarter-by-quarter, this will drastically reduce your club’s risk. A last thought: insurance is not a substitute for security. Insurance cannot bring back your data or reputation, so it’s important to protect and maintain it properly. BR Thanks to SecKC, a monthly information security conference, for the inspiration for this piece. I’d also encourage club boards to show interest in the continuing education of their IT department or service provider, with an emphasis on security.
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CHRIS BOETTCHER
CLUB SERVICE
Conceptual credit to Gregg Patterson of Tribal Magic. Christopher Boettcher, proudly a CCM and CCE, is the general manager/COO at Burlingame Country Club near San Francisco, CA and a regular contributor to BoardRoom magazine. He can be reached at chris@boettcher.com
At What Stage Is Your Manager? Stages of tenure for a new club manager is a crucial topic. The first white paper I read, written by a colleague, on this topic was more of a parable. I want to clarify and codify the subject in a clear and concise approach for board members to digest. It is important in understanding just exactly when your new club manager really knows what the heck they’re doing. I’ve started and ended a few jobs in my time and I’d like to think each and every start and stop was for a good reason - a continual advancement of my career, and a positive experience for the club while I was there. That being said, there were times when I wondered if the club members really understood that I knew what I was doing, and why I was doing it. Did they understand that what I was doing, no matter how menial, was for the good of my knowledge, and my leadership learning at the club? Let me explain: I recall one club, shortly after I started, the club president was commenting that it was nice I helped out in the grill and bussed a few tables, but it felt like he thought I didn’t need to do that. That’s where he proved to me he didn’t understand. Sure, I didn’t need to bus a table. I could have asked Joe Busboy to do it, but here’s the rub: you’ve got to be learning from the bottom up. You’ve got to see and understand every part of the club…from busboy to CFO. You also have to be in there when crap is hitting the fan being in the “trenches” to taking fire and fighting side-byside with the team. You have to know what they’re doing, feeling and enduring. Yes, it’s down in the trenches with the team, but that not only brings you knowledge at the club as an operator, it gives your club staff, working as a comrade in arms with this new manager, a reason to follow. It is a lead-by-example world, our clubdom. The staff is watching, the members are watching, and doggone it, you should be watching too, on how to get into your club’s culture. Being in the trenches takes up the first one to three years in a club for a new manager. Not that you’re bussing tables all that time, but you are learning where the spoons are - getting accustomed to the facility, the team and the club processes. Before you can get into the culture, though, you have to really focus on the team. A lot of the time, this is a rebuilding time period. 90
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Usually during the club manager’s three to five-year tenure, they really start working on building their team finding lieutenants that will execute orders, directives and action plans. Here’s where the rubber hits the road with a good manager – you start getting stuff done! And boy, let me tell you, from a manager’s perspective, it feels good. You finally get your team in place and training starts, plans are getting accomplished, goals and actions come to fruition, and the board really starts seeing the benefits of good management. This is a great time for a manager and the board to really get into projects too. The manager has hit a stride, has good team support, and has found confidence, not only in themselves, but also has gained confidence from the membership. Usually, by year five-plus, a good club manager who’s been in the trenches and built a good team, can really start to make an impression on the culture of the club. Now, I’ve worked at a number of old line, very distinguished private clubs, so understand this. When I say a manager can make an impression on the culture of the club, I don’t mean to sound like they are making any changes to that culture. On the contrary. They have finally figured out the nuances of why members do what they do, and why employees do what they do, to make the whole combined community at that club such a special place. A good manager, with this level of tenure, becomes the thread of continuity at board meetings. They can reference past exploits and speak from experience. They can relate the club’s “code of culture” to new members in an orientation. They can lead an annual meeting with confidence and proactive approaches. In every sense, they’ve become the embodiment of the club and what it stands for. I know, dramatic, but it’s what club boards should strive for…unless they like the revolving door of managers turning over every 3.25 years, and still looking to find out where the spoons are. The trenches, the team building, and the protector of culture are three phases of club management that need to be realized and understood by all club boards. Give the time to grow, nurture the process, allow it to happen, and let the new manager move through each phase and Lead ON! BR
JIMMY LYNN Jimmy Lynn, CCM CAM, works with innogy, a $30 billion renewable energy corporation that helps institutions of all sizes to grow their sustainability practice while reducing expenses and benefiting from increased public interest in their business.
PLANNING COMMITTEE
Is Your Club Focused on Sustainability? It is clear that industry leaders, like yourself, want and need to focus on sustainability in both business and society. Of all the S&P 500 companies over 80 percent are supporting and actively driving sustainability efforts today – compared to only 20 percent in 2011. You may also be aware that 375 mayors representing 67 million Americans have signed a “Climate Mayors” initiative, demonstrating that sustainability is vitally important to their businesses and cities. There is little doubt that the club industry is behind the curve, yet there are many pioneers mastering the task of becoming more and more sustainable. CMAA, the USGA, the PGA and the National Club Association all recognize the importance and understand that sustainability and quality go hand in hand. Caring for the environment is also key for attracting younger members and the next generation. CMAA hosted a webinar – An extraordinary way to perform well, by doing good! – on the benefits of sustainable efforts in the club industry. The Olympic Club in San Francisco, for example, has published a corporate social responsibility report and reaped many benefits in the process of becoming more sustainable. How do we define sustainability when it comes to our industry? Environmental sustainability is the ability to maintain rates of renewable resource harvest, reduce or eliminate pollution creation and non-renewable resource depletion that can be continued indefinitely (dictionary). Social sustainability is the ability as a social system, such as a country, city or country club, to function at a defined level of social well-being indefinitely, while economic sustainability is the ability to support a defined level of economic production indefinitely. B R
Here are many of the reasons “why” it should this matter for your club? • Boost your brand reputation and image • Enhance member experience • Enhanced media coverage • Increase your revenues • Lower your expenses substantially • Attract the next generation of members, and • Create a new culture and sense of pride within your membership and staff Location depending, here are practical ways to begin the sustainability journey: • Add solar and wind power • Leverage geothermal energy sources • Install LED lights • Install motion activated light switches • Install waste to water stations • Install EV car charging stations • Buy from local organic food and beverage sources • Water management controls • Add and improve recycling and composting programs • Improve wildlife and ecological programs • Implement a dashboard to show your members (and constituents, the media and your community) how you advance the journey to a sustainable club, and • Get certified on your progress and compete with other organizations for even greater visibility in the community and beyond Every little decision adds up and will definitely be noticed by your membership and will be well received and appreciated. Do good and talk about it!
PRODUCTS INCLUDE:
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H O S P I TA L I T Y GROUP strategic planning F&B consulting executive recruiting training & development
RCSU – online training
Effective virtual classes
consultingRCS.com 623.322.0773 MARCH/APRIL 2018 | BOARDROOM
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APCD MOST TRUSTED VENDORS & CONSULTANTS N D O R
It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! Great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRUST – the most precious commodity and transaction of them all. These are businesses that put their customers first and do not focus solely on profit at any cost.
Amenities
Clocks
2536 Manana Drive Dallas, TX 75220 P: 214.351.2834 Toll-free: 800.969.8008 F: 214.351.2834 www.sportssolutionsinc.com
444 Reading Road Cincinnati, Ohio 45202 P: 800.543.0488 www.verdin.com
Consulting
Architects 6 West 18th Street 9th Floor New York, New York 10011 P: 212.229.0200 ext. 120 www.lichtencraig.com
7730 E. Belleview Avenue., Suite. A-101 Greenwood Village, Colorado 80111 P: 720.266.2582 www.mai-architects.com
North Palm Beach Office 1295 US Hwy One North Palm Beach, FL 33408 P: 561.626.9704 F: 561.626.9719 Peacock + Lewis Naples Office 1610 Trade Center Way, Suite 5 Naples, FL 34109 P: 239.631.2332 F: 239.300.6402 jon@peacockandlewis.com www.peacockandlewis.com
500 Skokie Blvd #444 Northbrook, IL 60062 P: 847.480.4844 | C: 847.421.4537 B.R. Koehnemann brkoehnemann@kempersports.com www.kempersports.com
Locations in Phoenix, Northern Virginia, Atlanta, Chicago and New York C: 602.684.0251 | P: 623.322.0773 Whitney Reid Pennell, president whitney@consultingRCS.com www.consultingRCS.com
Executive Search
501 Kings Highway East #300 Fairfield, CT 06824 P: 203.319.8228 Dan Denehy dan@denehyctp.com www.denehyctp.com
Tampa Bay - 727.366.0487 dick@@gsiexecutivesearch.com 15990 N Greenway Hayden Loop C-100 Scottsdale, AZ 85260 P: 480.477.1111 phxarch.com
St. Louis - 314.854.1321 scott@gsiexecutivesearch.com Cleveland - 440.796.7922 ned@gsiexecutivesearch.com Ft. Myers - 239.221.7045 ned@gsiexecutivesearch.com Northeast - 518.852.0986 dan@gsiexecutivesearch.com
Architects | Planners | Interior Designers 44 North Main Street South Norwalk, CT 06854 P: 203.354.5210 www.rm-arch.com
Washington DC - 540.323.3388 sharlyn@gsiexecutivesearch.com www.gsiexecutivesearch.com
Executive Search Kopplin Kuebler & Wallace Southwest Office 7349 Via Paseo Del Sur, Ste. 202 Scottsdale, AZ 85258 P: 480.443.9102 F: 480.443.9642 Dick Kopplin, partner dick@kkandw.com www.kkandw.com Kopplin Kuebler & Wallace East Coast Office 132 Tulip Tree Court Jupiter, FL 33458 P/F: 561.747.5213 C: (407) 864-6798 Kurt Kubler, CCM, partner kurt@kkandw.com Kopplin Kuebler & Wallace Cleveland Office 20373 Scott Drive Cleveland, OH 44149 P/F: 440.783.1268 C: 412.670.2021 Tom B. Wallace III, CCM, partner tom@kkandw.com
Foodservice
3908 N 29 Avenue Hollywood, FL 33020 C: 954.805.7935 P 954.920.0737 sales@deikitchen.com www.deikitchen.com
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It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! Great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRUST – the most precious commodity and transaction of them all. These are businesses that put their customers first and do not focus solely on profit at any cost.
Furniture
Interior Design
Photography
P.O. Box 842 Ashburnham, MA 01430 P: 978.827.3101 sales@eustischair.com www.eustischair.com
95 Reef Road Fairfield, CT 06824 P: 203.259.2555 Craig J. Smith studio@c2Limited.com www.c2limited.com
3186 E. La Palma Avenue Anaheim, CA 92806 P: 800.653.5766 www.eaclubs.com
5 Hwy 82 West Magnolia, AR 71753 P: 800.221.0408 sales@southernaluminum.com www.southernaluminum.com
11071 Indian Lake Circle Boyton Beach, FL 33437 P: 954.614.1505 Steve Berlin XHBITZ1@XHBITZ.COM www.xhibtz.com
Game Equipment
Real Estate
700 School St. Unit. 2 Pawtucket, RI 02860 P: 401.365.1171 Peter Cafaro pcafaro@jbd.cc www.jbd.cc
Kid’s Camps
Technology 821 Executive Drive Princeton, New Jersey 08540 P: .877.671.2267 ext. 500 info@kecamps.com www.kecamps.com
Lockers 3780 Rippleton Road, Route 13 South Cazenovia, NY 13035 P: 888.647.2778 F: 315.655.2033 custserv@cornilleauusa.com www.cornilleauusa.com
Golf Course Architect
1825 West Walnut Hill Lane, Suite 110. Irving, TX 75038 P: 972.815.4000 Toll Free: 800.433.3630 info@hollman.com www.hollman.com
Menu 14332 Justice Road Midlothian, VA 23113 P: 804.897.8600 F: 804.897.8603 Lester George, president lester@georgegolfdesign.com www.georgegolfdesign.com
212 Old Quitman Annex Road Adel, Georgia 31620 P: 229.896.1492 C: 678.429.7997 Toll free: 888.324.5020 F: 229.896.1180 Hilda W. Allen hildahwa@gmail.com www.hildawallen.com
2046 Castor Avenue - 1st Floor Philadelphia, PA 19134 P: 215.535.6940 steve@the-polar.com www.the-polar.com
3650 Mansell Road, Suite #225 Alpharetta, GA 30022 P: 888.240.3501 info@globalnorthstar.com www.globalnorthstar.com
Uniforms
Pear Tree Plaza Building D 289 Hwy 33 East Manalapan, New Jersey 07726 P: 800.711.5885 F: 732.792.0111 Martin Klein www.ambassadoruniform.com
5442 Gateway Plaza Drive Benicia, CA 94510 P: 707.746.7011 Debbie Surani info@highenduniforms.com www.highenduniforms.com
Food Service Equipment & Design
Pastry Shop Main Kitchen Banquet Display Kitchen Bars Buffet The Turn (Snack Bar) Ventilation Refrigeration Installation
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POOL, BEACH AND PATIO FURNITURE
Steve Berlin (954) 614-1505 xhibtz1@xhibtz.com MARCH/APRIL 2018 | BOARDROOM www.xhibtz.com
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BOARDROOM MAGAZINE ADVERTISING INDEX ACCP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Addison Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Ambassador Uniform . . . . . . . . . . . . . . . . . . . . . . 47 Amish Gazebos . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Big John Grills . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Billy Casper Golf . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Boothe Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 C2 Limited Design . . . . . . . . . . . . . . . . . . . . . . . . . 49 Chambers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Clubtec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Clubwise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Club Benchmarking . . . . . . . . . . . . . . . . . . . . . . . 29 Club Design Associates . . . . . . . . . . . . . . . . . . . . . 13 Creative Golf Marketing . . . . . . . . . . . . . . . . . . . 25 Daniel Paul Chairs . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Denehy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Distinguished Clubs. . . . . . . . . . . . . . . . . . . 84 & 85 EA Photography. . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Eustis Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 EZLinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Flora Springs Wine . . . . . . . . . . . . . . . . . . . . . . . . 37 FOOD-TRAK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Gasser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 GMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 High End Uniform . . . . . . . . . . . . . . . . . . . . . . . . . 53 HINT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 HFTP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Judd Brown Designs . . . . . . . . . . . . . . . . . . . . . . . 47 Kopplin Kuebler & Wallace . . . . . . . . . . . . . . . . . 35 MAI – Marsh & Associates . . . . . . . . . . . . . . . . . . 19
McMahon Group . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Peacock + Lewis . . . . . . . . . . . . . . . . . . . . . . . . . . 65 PGA Reach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Polar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 RCS Hospitality Group . . . . . . . . . . . . . . . . . . . . . 93 Rogers McCagg . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 RSM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Salsbury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Something Different. . . . . . . . . . . . . . . . . . . . . . . 57 Stratton Crooke. . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Troon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Trust Edge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Webtec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Welch Tennis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 XHIBTZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
BOARDROOM MAGAZINE COUNTRY CLUB INDEX Husam Atari, GM/COO, River Bend Golf & Country Club,Great Falls, VA
Doug Greer, president, The Polo Club of Boca Raton, Boca Raton, FL
Tom Behrendt, locker room manager, Arrowhead Country Club, Glendale, AZ
Luis Hermosillo, locker room manager, San Gabriel Country Club, San Gabriel, CA
Jeff Benton, president, River Bend Golf & Country Club, Great Falls, VA
Dayna Kelsey, clubhouse manager, Hendersonville Country Club, Hendersonville, NC
Chris Boettcher, CCM, CCE, GM/COO, Burlingame Country Club near San Francisco, CA
Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club
Tom Brunts, president, Country Club at Castle Pines, Castle Pines, CO Cleve Christophe, president, The Thornblade Club, Greer, SC Rocco Diina, president, The Buffalo Club, Buffalo, NY Todd Dufek, locker room manager, The Country Club at DC Ranch, Scottsdale, AZ 98
BOARDROOM | MARCH/APRIL 2018
Kathy Kohlhepp, director of communications and marketing, Boca West Country Club, Boca Raton, FL David W. Lacey, two-term member of the board of governors, chair of the tennis committee, Philadelphia Cricket Club, Philadelphia, PA
The BoardRoom magazine
CELEBR ATING 22 YEARS OF EDUC ATING THE PRIVATE CLUB INDUSTRY ISSUE 275
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VOLUME XXII MARCH/APRIL
Volume XXII, Marc h /Apr il 2 018
The Importance of Your Board Member’s Education - P20 PICTURED L-R, TOP TO BOTTOM: DAN FARRELL, JOHN G. FORNARO, PHILIP HARVEY, RICHARD KOPPLIN, JERRY MCCOY, JEFF MORGAN, ROBYN STOWELL, MICHELLE TANZER AND GORDON WELCH
10 | PUBLISHER’S PERSPECTIVE
58-59 | TOP PRIVATE CLUB PRESIDENTS
SHOULD THE BOARD RUN YOUR PRIVATE CLUB?
54 | ON THE FRONTLINES MAINTAINING CONFIDENTIALITY
76-79 | INNOVATIVE IDEAS BOCA WEST COUNTRY CLUB, CHAMPIONS RUN COUNTRY CLUB, HENDERSONVILLE COUNTRY CLUB, AND PHILADELPHIA COUNTRY CLUB