C E L E B R A T I N G 25 Y E A R S O F E D U C A T I N G T H E P R I V A T E C L U B I N D U S T R Y T he Bo ardRo o m m ag az ine
ISSUE 294
|
VOLUME XXV MARCH/APRIL
Vo l um e X X V, Mar c h / A pr il 2 0 2 1
Kitchen Display System 10 | PUBLISHER’S PERSPECTIVE
ARE PRIVATE CLUB GENERAL MANAGERS SET UP TO FAIL?
28 | DESIGN FEATURE
WHAT SHOULD CLUBS FOCUS ON IN 2021?
42 | CLUB FACTS & FIGURES
TRENDS IN THE CLUB INDUSTRY WHERE WILL THE FUTURE TAKE US?
N O R T H S TA R
Kitchen Display System
96-97 | INNOVATIVE IDEAS EXPLORER’S CLUB TUCKER’S POINT GOLF COURSE
• Supercharge Members Dining Experience.
• Go Green with the #1 Kitchen Display System.
• Streamline Kitchen Operations & Improve Service.
• Get Kitchen Analytics and Operational Reporting.
Visit our website to find out more.
DICK KOPPLIN READY FOR RENAISSANCE YEARS COVER PHOTO: Richard M. Kopplin, Partner Kopplin Kuebler & Wallace
www.globalnorthstar.com/KDS
W W W.JO NAS CLUB .CO M
HELPING CLUBS THRIVE Our Online Ordering platform became a must have in 2020 and has empowered members with the ability to order meals for pickup or delivery, shop online from club retail outlets, and even schedule grocery pickups. Online Ordering is just one way that we are continuing to help clubs thrive in 2021.
Online Ordering
MemberInsight
SkyTab
CRM MetricsFirst
Self Serve Kiosk
Mobile Point of Sale ClubHouse Online®
Multi-time Boardroom Award Winner including:
APRIL 26 – MAY 2, 2021
ROUNDS4RESEARCH.COM
BID BUILD
on a round
a better game.
Club Management Software of the year Business Intelligence Software of the year CRM of the year
1-888-789-9073 | sales@jonasclub.com
PREVIEW the courses to BID on now and support turfgrass research to help sustain the future of golf.
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.
One Phone Call Changed Everything On a cold, snowy night in Eau Claire, WI, Dick Kopplin took a phone call from the president of Hillcrest Country Club that changed his life’s direction. The club’s executive board offered Kopplin the club’s manager’s job that would pay him $800 a month plus a $50 a month car allowance. Kopplin thought he had won the lottery. That move launched what has turned out to be a 45-year career in the private club industry. The story of Dick Kopplin is one of several that will be featured in BoardRoom magazine during our 25th anniversary celebrations this year, as we pay tribute to personalities who have helped make the private club industry and BoardRoom what it is today. From that start with Hillcrest, Kopplin enjoyed many years as the leader at several outstanding private clubs, but for much of the time, another idea had been lurking in the background... Kopplin’s own company. In 1996, Kopplin took a leap of faith to do something that he’d done for the clubs where he’d been a leader...finding key personnel for private clubs. The result: Kopplin Search Inc., a search firm focused on the private club industry. A mutual friend introduced Kopplin to another industry consultant, Steve Graves, owner of Creative Golf Marketing. “Steve introduced me to the board of a small Kansas club needing a new general manager, and following that successful search, I began to receive calls from other potential clients. About the same time, John Fornaro had jumped into the industry with the first issues of BoardRoom magazine. It just so happened that both Fornaro and Kopplin shared similar philosophies and messages for general managers. Kopplin surfaced as BoardRoom’s first advertiser and the synergy and collaboration, which has proven valuable for both Kopplin and Fornaro, continues today. Today, Kopplin Kuebler & Wallace (with partners Dick Kopplin, Kurt Kuebler and Tom Wallace) ranks among the best of the best in the industry with a group that now includes 17 associates...a significant success story in the private club industry.
4
BOARDROOM | MARCH / APRIL 2021
n n n
A while back, PBMares, published “Clubs in Town and Country”, which gives some hints into trends in the industry. In this issue, CPAs Kevin Reilly, a frequent BoardRoom contributor, and Ed Yoder give us some insight into that report with their article,” Trends in the Club Industry.” It gives us some insight into the impact COVID-19 has had on the industry. There are some interesting assumptions and information in this report that make excellent reading for private club boards of directors. n n n
Over the years, BoardRoom has tipped the hat to some of the industry’s most outstanding personalities by awarding them Lifetime Achievement Awards. In this issue, we recognize the achievements and contributions of Judd Brown, a creative force in the industry for almost 40 years. Peter Cafaro, a senior vice president, Studio JBD, introduces us to his colleague Judd Brown and his achievements over the years. It’s as Judd Brown says, “The key to a great firm is a culture with core values that foster and convey integrity, transparency and honest dialogue.” Significant reasons for success, we add. n n n
And we begin introducing BoardRoom’s Top Presidents in this issue with stories featuring six presidents selected for their outstanding work in 2020. They include: Bruce Behrens, President, Orchid Island Golf & Beach Club, Vero Beach, FL; Susan Brenner, President, Wycliffe Golf & Country Club, Wellington, FL; Martin P. Brunk, President, Baltimore Country Club, Baltimore, MD; William Choate, President, Charlotte Country Club, Charlotte, NC; and Ken Christian, President, Berkshire Country Club, Reading, PA. B R
Publisher/CEO
Co-Founder/CEO
John G. Fornaro
John G. Fornaro
Editor
President
Dave White
Keith Jarrett
Assoc. Editor/VP Creative
Chief Analyst
Heather Arias de Cordoba
Frank Gore
Copy Editor
Chief Information Officer
Chryssoula Filippakopoulos
Quality isn’t Expensive It’s Priceless!
Jeff Briggs
Innovative Ideas Editor
Executive Director
Ellery Platts
Bill Thomas
APCD Executive Director Bill Thomas
Editorial & Marketing Director
Executive Assistant/ Director of Support Joshua Nuzzi
Dee Kaplan
Contact Information
Business Development Joshua Nuzzi
Accounting/Subscriptions
www.DistinguishedClubs.com (949) 376-8889
Ronni Dana
Contact Information
www.BoardRoomMagazine.com www.apcd.com (949) 376-8889
Featured Columnists Rick Coyne John G. Fornaro Bonnie J. Knutson Dick Koppplin Kurt Kuebler
Nancy M. Levenburg Jerry McCoy Gregg Patterson Whitney Reid Pennell Kevin F. Reilly
Tom Wallace Dave White Ed Yoder
Contributing Writers Rita Barreto Bruce Barilla Nancy Berkley Peter Cafaro Jarrett Chirico Ron Cichy Trevor Coughlan Whitney Crouse Dave Doherty
Ed Doyle Scott Ferrell Angela Hartmann Billy Knight Scott Krout David W. Lacey Melissa Low Ryan McAndrew Tom Neill
Greg Pieschala Ellery Platts Corey Saban Robert A. Sereci Michelle Tanzer Gordon Welch Jim West Dean Wochaski Frank Wolfe
The most trusted name in
executive search and consulting!
Strategic Partners and Allied Associations
EXECUTIVE SEARCH FIRM OF THE YEAR 14TH YEAR IN A ROW
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 294 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 email ronni@boardroommag.com or johnf@apcd.com or visit the website at www.BoardRoomMagazine.com.
CLEVELAND / DENVER / JUPITER / NAPLES NEW YORK / SCOTTSDALE / WASHINGTON D.C.
WWW.KKANDW.COM WWW.CLUBLEADERSHIPALLIANCE.COM
480-443-9102
CONTENTS | MARCH / APRIL 2021 PUBLISHER’S PERSPECTIVE | 10
CASE STUDY | 12
PLIGHTS AND INSIGHTS | 14
ARE PRIVATE CLUB GENERAL MANAGERS SET UP TO FAIL?
WHAT SHOULD WE EXPECT IN 2021?
360 REVIEW
BY RICK COYNE
BY NANCY M. LEVENBURG
BY JOHN G . FOR NAR O
General managers are often on the move and for a variety of reasons. In fact, statistics suggest the industry average tenure for general managers remains at less than three years. At the other end of the spectrum, we’ll find general managers who have achieved longevity…some with 25 years and more at the same club.
Over the past several months, I’ve written and read a great number of blogs and articles regarding the effects of COVID-19 on the private club industry and specific types of clubs. Clearly, the effects have been mixed, with city clubs being more severely affected, while golf-related clubs have seen significant increases in rounds. But what lies ahead?
The personnel committee at the church I attend, decided, within the past couple of years, to set up a 360 performance review process for its pastors and the director of the children’s daycare program that is housed within the church. How do I know this? Because I’ve served for the past three years as the chair of this committee.
EXECUTIVE COMMITTEE | 16
BOARDROOM BASICS & BEYOND | 18
CLUB FACTS & FIGURES | 42
PAY NOW OR PAY LATER BUT YOU WILL PAY FOR TRAINING
CITY CLUBS: SURVIVING AND THRIVING
TRENDS IN THE CLUB INDUSTRY
B Y DIC K K O P P P L I N, K U RT K U E B L E R A ND TOM W AL L A C E
BY KEVIN F. REILLY AND ED YODER
BY WH ITNEY R EID PENNELL
It has been a tough year for the hospitality industry, and clubs were no exception. The next 12 months are expected to be better, but the recovery may be slow. As a result, we need to go back to 2019 to see where we think the club industry will be in 2022.
Training staff and managers is an investment, not an expense. Yet time and again, when the “going gets rough” as it did in 2020, training is often the first thing to be cut from the budget. But does it really save money in the long run? Maybe the better question is, what is the cost of not training an employee?
Economic cycles, civil unrest and urban flight have impacted city clubs since their inception. In some ways clubs have weathered the events of 2020 like they always have but enduring all of these amid a global pandemic has created a nearly impossible situation for city clubs.
MEMBERSHIP MUSINGS | 52
WI N N I N G S T R A T E G I E S | 8 6
TRIBAL MAGIC | 110
MY LATIN TEACHER WOULD BE PROUD OF ME
TALKING TO MYSELF
RESEARCHING RUDE
BY BONNIE J. KNUTS ON
BY JERRY MCCOY
BY GREGG PATTERSON
When I tell people that I took Latin all through high school, they look at me with a puzzled expression. Why would anyone study a dead language? After all these years, I can say that the time I spent building off the first Latin sentence I ever learned (Americae pulchrum est = America is beautiful) has reinforced the value of those countless hours in class – not to mention the homework – with Mr. Kennedy, my Latin teacher. Why?
Past Club Management Association of America (CMAA) national conferences exposed participants to the newest product and service ideas available in the private club industry. The conference was also an outlet for the latest educational opportunities and creative ideas being implemented at the finest clubs in the world. It is important to share the vision that was presented to managers with club directors.
Past Club Management Association of America (CMAA) national conferences exposed participants to the newest product and service ideas available in the private club industry. The conference was also an outlet for the latest educational opportunities and creative ideas being implemented at the finest clubs in the world. It is important to share the vision that was presented to managers with club directors.
SECTIONS
DEPARTMENTS
BOARDROOM DESIGN FEATURE . . . . . . 28
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
What Should Clubs Focus On in 2021?
New Rules on Tips, Independent Contractors, and H-2B Visa Updates
By Dave White
By Melissa Low
CLUBCORP . . . . . . . . . . . . . . . . . . . . . . . 70
Private Clubs Will Face a New Slate of Questions in a Post-COVID Environment
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Building and Managing a High-Performance Team
By Billy Knight
By Jim West
ON THE FRONTLINES . . . . . . . . . . . . . . . 74
The Pandemic Took Away My Superpowers
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Top Private Club Presidents 2020
By Robert A. Sereci
By Ellery Platts
BOBBY JONES LINKS . . . . . . . . . . . . . . . 77
Culture-Based Professional Management, You Say?
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
TECHNOLOGY PERSPECTIVE . . . . . . . . . 84
By Angela Hartmann
GCSAA Program Establishes Golf Course Best Management Practices in All 50 States
By Whitney Crouse
Ransomware: A True Story By Bill Boothe
TE CHNOL OG Y COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Career Elevation Requires an Internal Approach to Customer Service
NANCY’S CORNER . . . . . . . . . . . . . . . . . 91
More Juniors Playing More Golf Even in Snow Country
By Frank Wolfe
By Nancy Berkley
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
INNOVATIVE IDEAS . . . . . . . . . . . . . 96-97
Career Elevation Requires an Internal Approach to Customer Service
Explorer’s Club Tucker’s Point
By Gordon Welch
By Ellery Platts
COMMITTEES EXECUTIVE COMMITTEE . . . . . . . . . . . . 30
FINANCE COMMITTEE . . . . . . . . . . . . . . 48
HOUSE COMMITTEE . . . . . . . . . . . . . . . . 76
By Rita Barreto
By Ryan McAndrew
By Bruce Barilla
Roadmap to Recovery Begins with Your Employees
COVER STORY . . . . . . . . . . . . . . 20 Dick Kopplin Ready For Renaissance Years By Dave White
EXECUTIVE COMMITTEE . . . . . . . . . . . . 32
Curiosity Intelligence - Part II By Ron Cichy
EXECUTIVE COMMITTEE . . . . . . . . . . . . 34
By Tom Neill
By Dave Doherty
EXECUTIVE COMMITTEE . . . . . . . . . . . . 38
The Value of a Dashboard As a Management Tool By Dean Wochaski
By Peter Cafaro
By Ed Doyle
EXECUTIVE COMMITTEE . . . . . . . . . . . . 36
By David W. Lacey
Judd Brown Recognized With BoardRoom magazine Lifetime Achievement Award
HISTORICAL COMMITTEE . . . . . . . . . . . 78
Fences and Filters Mapping the F&B Experience
GREEN COMMITTEE . . . . . . . . . . . . . . . . 62
The Value of a Dashboard As a Management Tool
MARKETING COMMITTEE . . . . . . . . . . . 46
Communication Is Essential By Corey Saban
Locker Room Renovations Who Knows Best?
F&B COMMITTEE . . . . . . . . . . . . . . . . . . 50
Considering Renovating? By Scott Ferrell
BOARDROOM FEATURE . . . . . . 72
Non-traditional Data Can Give Club Budgeting an Edge
Testing Greens When They Are Healthy Is a Must
La Quinta Country Club The Wall Tells the Story
RACQUET COMMITTEE . . . . . . . . . . . . . 80
The Future of Racquets - Part I By Jarrett Chirico
TECHNOLOGY COMMITTEE . . . . . . . . . . 83
Caring for Aging Turf
Understanding Cloud Versus Locally Hosted Software
GREEN COMMITTEE . . . . . . . . . . . . . . . . 66
LEGAL COMMITTEE . . . . . . . . . . . . . . . . 98
GREEN COMMITTEE . . . . . . . . . . . . . . . . 64
By Scott Krout
Do Your Course Conditions Give You A Competitive Advantage? By Greg Pieschala
By Trevor Coughlan
Golf, the Silver Lining of 2020 By Michelle Tanzer
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
Are Private Club General Managers Set Up to Fail? Is there such a thing as job security for general managers of private clubs? General managers are often on the move and for a variety of reasons. In fact, statistics suggest the industry average tenure for general managers remains at less than three years. At the other end of the spectrum, we’ll find general managers who have achieved longevity…some with 25 years and more at the same club. However, there are likely fewer longtime managers than there are managers on the move. Why does a manager stay or leave, either through resignation or firing? Is it personality differences, club culture, conflict with a board and staff, or a manager seeking career advancement? Unequivocally, some people suggest boards of directors set up their managers to fail, and they can enumerate the reasons why. At the same time, others disagree with this thesis. What’s the truth and what lies in between?
Private clubs, as small businesses, can be unwieldy beasts, especially when considering club governance. Clubs, since their beginnings, have operated in many different ways. Many were founded as pet projects of patrons as bastions of servitude to where today they are small businesses. Yes, clubs hire paid managers to meet the demands and requirements of the members (and the owners)…but it is precisely this dichotomy that creates such a conflict – and a manager’s good-before-date in the private club industry. Today, a common denominator for many private clubs is a volunteer board of directors operating in tandem with paid management. One aspect of this board structure has one-third of the directors rotating, with elections each year so that the board has completely changed in three years. Does this structure enhance the failure of a general manager? “No,” expounds Henry DeLozier, a principal with GGA Partners. “Although some general managers find themselves working within toxic cultures or clubs with inadequate financial structures, most club managers are set up to succeed. Most managers have invested years of their careers learning the essence of the private
There’s a need for clarity. Communication between the GM and the board is critical. Nothing can hurt the credibility of a GM or a board member more than not being clear in articulating their positions. Board members also need to practice active listening with the GM and other board and committee members. Listen to what’s been said – not just hearing words that have little impact or validity. Don’t leave your committee members in the dark because one day soon, one or two of them will be on the board and eventually the club’s president. Crystal Thomas, founder of CrystalClear Conclub segment, and even more managers are benefiting from the cepts, CEO of Management Connection and manClub Management Association of America education programs aging director of the Golden State Chapter of the and processes that are among the best in professional education CMAA, is adamant: “No one is set up to fail. To and career development.” suggest that someone else is responsible for our Frank Vain, president of the McMahon Group, says, that “While ‘failure’ is to place blame and not place responsibilthe volunteer leadership and professional manager structure ity where it lies, which is within. There are always external contributing factors, but failure or success SEE PUBLISHER’S PERSPECTIVE | 106 is an ‘internal job’ because the choice lies within us!” 10
BOARDROOM | MARCH / APRIL 2021
RICK COYNE Rick Coyne is president, ClubMark Corporation. He can be reached via email: rcoyne@clubmark.com
CASE STUDY
What Should We Expect in 2021? Are You Ready? Over the past several months, I’ve written and read a great number of blogs and articles regarding the effects of COVID-19 on the private club industry and specific types of clubs. Clearly, the effects have been mixed, with city clubs being more severely affected, while golf-related clubs have seen significant increases in rounds. Usage in food and beverage has been greater in facilities that have provided open air dining. But what lies ahead? For about 60 percent of clubs that had little to no negative cash consequences or membership declines, is it time to celebrate, or is it time to look carefully at member trends to envision how they may react as 2021 unfolds? For those clubs already negatively affected in 2020, what can they expect? Neither answer can be certain. Between COVID-19 and the political uncertainty, it has sometimes seemed difficult to focus on anything other than day-to-day. Regardless of one’s politics, the elections will likely impact business in all sectors and new trends will emerge. Ask your peers in natural gas and oil-related economies what has occurred in layoffs and their impact on membership and usage. Perhaps more than ever before, it is time to identify emerging trends and determine how they will affect your members’ interests, usage and needs. As dues-based businesses, it’s all about remaining attractive and retaining the members you have. So, what are members thinking? How are they being affected and what are their fears in 2021 and beyond? What will they expect, want to see and/or need from the club? These are the strategic questions we should be asking. Likewise, what trends are emerging? • Will home offices become the trend of the future? If so, how should the private club plan? • What products or membership services will be necessary to ensure healthy membership growth and retention? • What will the newfound trends in golf do as we emerge from COVID-19? How can the positive trend be cultivated and nourished? Is there any danger from demand exceeding comfortable capacity as some clubs are already experiencing? • What tools do you need to address the creation of continual two-way communication access to your members? • What happens if lingering health fears keep your members from social activities? How can you know how they will react? It would be irresponsible not to expect lingering member fears not only related to COVID-19 but from the ongoing economic recovery. 12
BOARDROOM | MARCH / APRIL 2021
Clubs are communities. The greater the social interaction with your members and their sense of belonging, the greater their bond. Through that bond, trust and confidence become inherent. Maybe this explains why 60 percent of clubs have had minimal negative effects. Clubs are a safe haven. But, as 2021 unfolds, will it be enough to hold membership together? Seeing clearly and knowing what your members are thinking is the first part of building your strategy for safely entering 2021. 1. How are your members being affected by 2020 and the political change? 2. How could these changes affect their overall usage of the club or membership retention? 3. With what we currently know and understand, what are the potential opportunities and threats of each factor? Here’s a process that will allow you to at least visualize what may be ahead: • Watch the news for economic policy changes and the industries that may be affected. • Know the effect on your specific marketplace in terms of job security, layoffs and issues your members will be addressing. • More members will be working from home, with potentially more flexibility of time. What does this mean in terms of opportunities/threats to your club’s offerings? • Create a communications process with members that stays relevant to the changes that will continue to come in 2021. Surveys and communication systems will play a major role in keeping your club ready to visualize and prepare for whatever the future may bring. This is neither the time to think the worst is over nor the time to panic. It is the time to be vigilant, a time to watch trends as they unfold. It is a time to follow global and regional influencers and their impact on your local economy and your members’ challenges. Are you ready? BR
Golf Maintenance
NANCY M. LEVENBURG
PLIGHTS AND INSIGHTS
Nancy Levenburg, PhD, is a recently retired professor of management in the Seidman College of Business at Grand Valley State University in Grand Rapids, MI. She is the president of Edgewater Consulting and a member of Spring Lake Country Club in Spring Lake, MI. For more information, contact her at: levenbun@gvsu.edu or (616) 821-5678
360 Review
Seeking Feedback The personnel committee at the church I attend, decided, within the past couple of years, to set up a 360 performance review process for its pastors and the director of the children’s daycare program that is housed within the church. How do I know this? Because I’ve served for the past three years as the chair of this committee. The 360 review system, borrowed from businesses, asks for feedback from a variety of constituents. The term “360 review” is used for this approach — also known as multi-source feedback, multi-rater feedback, multi-source assessment, and the full-circle appraisal — because performance feedback comes from all directions in the organization. It’s been estimated that over 90 percent of Fortune 1000 companies use some variation on this approach to do their annual reviews. Its popularity and widespread adoption in business is probably because it requests feedback about an employee’s performance from not only one manager but from peers and reporting staff and others with whom the employee interacts — possibly even customers. In other words, perspectives are obtained from numerous stakeholders, yielding a more holistic and balanced view of the employee’s performance. Of course, academic faculty members’ performance has been evaluated using 360 review systems for light years, with tenure and promotion decisions based on combined evaluations from students, departmental colleagues and promotion/tenure committees, deans, and others. To apply the 360 review to my church’s senior pastor, we determined that on an annual basis, we would seek feedback from three members of her/ his staff, two chairs of major church committees, two members from the congregation at large, and one member of the personnel committee. In particular, we were interested in learning their perceptions of the pastor’s observed strengths and possible areas for growth or improvement, goals, and working relationships. We also decided that those who completed evaluations would be rotated each year in 14
BOARDROOM | MARCH / APRIL 2021
order to minimize potential bias and evaluator fatigue. Similarly, we collected feedback about the daycare director from the pastor to whom she reported, two teachers who worked for her, two parents of children enrolled in the daycare program, and one member of the church’s daycare advisory committee. Overall, we’ve concluded that the 360 system has worked very well. So, this got me thinking. If an estimated 90 percent of leading business organizations use a 360 review system to evaluate their leaders, nonprofit organizations like colleges/universities use it to evaluate faculty, and churches use it to evaluate pastors, how much are private clubs using it to evaluate their general managers? Do private clubs have an open process that includes multiple sources for feedback? Or is there only a small, exclusive set of board members that conducts the GM’s annual evaluation? I’m asking this question because according to one source, the 360 process is “strongly recommended as the best chance of improving [emphasis added] the overall organization as well as the performance of the individual employee.” Apparently the Club Management Association of America (CMAA) also recognizes this as it has published a 71-page Performance Evaluation Program containing templates and resources clubs can use to evaluate general managers/chief operating officers, department managers, and non-management staff. It states: “The goal of this Performance Evaluation Program is to provide procedures and forms that will help clubs develop objective, timely, comprehensive and well-documented performance feedback processes. It is based upon the concepts of ‘360-Degree Performance Appraisal,’ a relatively new methodology that has already proven to be more objective and meaningful than traditional ‘superior to subordinate’ evaluation. The focus of the program is improvement.” The CMAA recommends that five to 10 people should be tapped annually to evaluate the general manager/chief operating officer, including that person’s immediate superior (e.g., club president, chairman of the board, executive committee chairman), other members of the club board, several department managers and selected staff personnel, and “if desired and appropriate,” other club members and/or club vendors. (Why wouldn’t it be appropriate to invite club members to evaluate the general manager? After all, aren’t they the club’s “customers”?) BR If you’re interested in improving your club or your club’s performance appraisal system, check out this CMAA manual at: https://cmaa.org/uploadedFiles/Careers/Career_Resource_Center/PerformanceEvaluation.pdf
THE MOST AWARDED
0 198
2020
F&B MANAGEMENT SYSTEM IN THE CLUB INDUSTRY
THERE HAS NEVER BEEN A BETTER TIME TO GET FOOD COSTS UNDER TIGHT CONTROL The world has changed dramatically since March, and the way we do F&B has changed with it. With volumes down, costs need to be carefully monitored. Tight control is essential to survival.
Use the FOOD-TRAK® System to: u Maximize cash flow using ranked inventory level overstock reports u Monitor raw material price fluctuations with price history comparison reports u Find the best pricing with bid comparison reports u Quickly react to falling menu profit margins with Red Flag reports u Control waste, spoilage and portioning-related usage variances with ranked Management Summary reports u Reduce labor costs with multi-function mobile scanning and interfaces to vendors, POS and club accounting systems Plus many more tools to help vaccinate your organization from the many ripple effects of the virus. Our purpose and passion has been to help foodservice operators get as close to their ideal food and beverage costs as possible. We built the system, the implementation, training processes and the team of career professionals to help our clients do just that.
Contact our club account managers to get started! 800.553.2438 | WWW.FOODTRAK.COM F&B MANAGEMENT SOFTWARE
WHITNEY REID PENNELL
EXECUTIVE COMMITTEE
Whitney Reid Pennell, president of RCS Hospitality Group, is a celebrated management consultant, educator and speaker. RCS has been recognized 10 times with BoardRoom magazine’s Excellence in Achievement Awards, most recently for Staff Training Company. RCS continues to offer innovative solutions through rcsuniversity.com, an online virtual training portal for employees and managers. For more information, phone (623) 322-0773 or visit www.consultingrcs.com
Pay Now or Pay Later But You Will Pay for Training Training staff and managers is an investment, not an expense. Yet time and again, when the “going gets rough” as it did in 2020, training is often the first thing to be cut from the budget. But does it really save money in the long run? Maybe the better question is, what is the cost of not training an employee? Untrained employees inevitably lack knowledge and motivation to work according to standards, never mind embracing personalized member service. Their behavior can lead to unproductive hours worked and product waste and will certainly affect member satisfaction and the team overall. There is a direct correlation to untrained employees and lack of engagement, ultimately ending in turnover. Pay now or pay later; either way you are paying for training. Undoubtedly, not investing in human capital will cause the employees, the club and the members to suffer in the long term, which usually results in a large training investment to undo the damage done. So, let’s consider the true cost of not training an employee. A quick case study: I have trained service staff on the topic of suggestive selling using the pitch of “you can give yourself a $3,000 raise.” Then I showed them how to do it through training while also working with the chef to have a menu that provided selling opportunities. If the server was able to achieve $3,000 more in tips and we assume that is 20 percent of their increased sales, they were actually each taught how to contribute $15,000 more in revenue for the company. Imagine if seven of your trained staff could each add $15,000 in revenue, that’s $105,000. Until the servers were trained to increase sales, the training cost was $105,000 in annual revenue potential unrealized for years. Here are a few illustrations how not investing in training could be costing you money without realizing it, and how to resolve it. • Train everyone to enhance the member experience and remain aware of sales overall: Memberships, merchandise, personal training, yoga classes, golf instruction, junior clinics, special events, meetings, etc. Imagine if everyone knew how to better create sales opportunities and then close sales in all areas; not only would it increase member satisfaction and engagement, but it would also 16
BOARDROOM | MARCH / APRIL 2021
increase revenues. A 10 percent gain in sales is achievable with focused training and vision. For a $5 million club, that’s an additional $500,000. • Focus on food and beverage average check amounts: Increasing the food and beverage average check is a training investment well worth the time and money. Imagine 25,000 covers (annually) in food and beverage at an average of $15 per cover. If that is increased to $17 per cover through better training, the club would enjoy a $50,000 bump without any additional expense. That’s a conservative example for most clubs and all a server has to do is make thoughtful recommendations for every course served and listen for cues. They must be taught – through training. • Improve employee retention: It is well documented that turnover replacement costs are about 20 percent of the employee’s annual salary. Let’s be conservative. Someone making between $20,000 and $40,000 will cost about $5,000 to replace. For a club with 50 employees and a modest turnover rate of 20 percent, the turnover cost is about $50,000 annually. The connection between training and retention is wellknown. Well-trained employees are happier, more engaged and productive, making them less likely to leave. Reducing turnover by five percent in this case would result in a savings of $12,500, or about $1,000 per month, which could be invested in training. • The last and probably most important area for training in a club is focus on member retention. Let’s say dues are $20,000 per year for 325 members. If untrained employees negatively impacted member satisfaction causing member attrition to increase by two percent, that’s $130,000 lost in dues, not to mention their spending at the club, potential referrals or their lifetime value to the club. Adding all of these up, I have outlined $550,000 in potential revenue increases, $12,500 saved in turnover cost and potential dues revenue loss of $130,000, which can be directly tied to lack of training. So, now I’ll pose my question again – is training an investment in the club’s future or an expense to be put on the chopping block? Whether we budget for it or not, we are paying for training every day. B R
The Award-Winning Agency For Private Clubs 8x
Website Company Of the Year Winner
46x
Interactive Media Award Winner
info@membersfirst.com | 508-653-3399
See for yourself at www.membersfirst.com
RICHARD KOPPLIN
KURT KUEBLER
TOM WALLACE
BOARDROOM BASICS AND BEYOND
City Clubs: Surviving and Thriving Economic cycles, civil unrest and urban flight have impacted city clubs since their inception. In some ways clubs have weathered the events of 2020 like they always have but enduring all of these amid a global pandemic has created a nearly impossible situation for city clubs. Once vibrant hubs of connection, business events and social activities, many city clubs suffered as people fled crowded cities to quarantine in suburbs and desolate areas. Businesses closed and members worked from home offices. City clubs experienced high member attrition, shifts in member categories (from full-dues resident members to half-dues non-resident members). Nearly all city clubs experienced a significant decrease in member usage and revenue because of stay-at-home orders and the cancellation of events. Recognizing that city clubs have been presented with some grave obstacles that may prove insurmountable to some, the KK&W team contacted top city club managers to gather insights into how city clubs are handling and responding to this challenging time. Like the rest of the private club industry, city clubs made adjustments to keep members comfortable and safe. They pivoted to virtual programming during stay-at-home orders. Daniel Perez at the New York Athletic Club implemented numerous out-of-the-box virtual events such as wine tastings, whiskey tastings, virtual happy hours, online cooking classes, virtual fitness challenges and more. City clubs created at-home experiences for members with elaborate to-go foods, online activities and creative virtual events to keep members connected to the club. The pandemic presented an excellent opportunity to bring the club to members and gain access to members’ lives. It solidified the club’s importance and the value of club membership, but it also provided clubs with a unique glimpse into members’ homes. During virtual events and meetings with members, one manager shared that he took notes of important items in the background, such as diplomas, favorite sports teams, hobbies, and pets, to understand his members better. Most city clubs have been and continue to downsize as much as possible to control costs. John Dorman, GM of The University Club in New York City, calls it “right-sizing” for the current climate. City clubs are watching finances and have kept labor tight by laying off staff, including management. Some city clubs cut employee salaries by up to 20 percent and reduced hours to four-day-work-weeks to control costs. Many of the top city club CEOs were also asked or volunteered to take pay cuts. 18
BOARDROOM | MARCH / APRIL 2021
While certain city clubs have paid partial or full 2020 staff bonuses, it was likely dependent on that club’s fiscal year. Decision-makers continue to be cautious and extremely conservative with employee raises and bonuses. Some have been hesitant to reinstate employees’ full salaries after temporary reductions were issued last April or May. The New York Athletic Club has taken the challenges of the last year and turned them into opportunities. General Manager Roger Simon and his team re-configured many business practices and evaluated the club’s strengths and weaknesses, which became apparent during COVID-19. “We’ve all learned a lot about our clubs over the last several months,” he said and shared several updated practices the club has implemented: • Communications not only include safety aspects but a sentiment of community, mutual concern and support among members. • The club implemented additional storage spaces for members choosing to commute to the club via bicycle because of concerns over the safety of mass transit. • The club created a relationship with a medical practitioner who can offer expedited COVID-19 testing opportunities for members to avoid long lines at health facilities. Charles Johnson, GM of Detroit Athletic Club, believes city clubs will be grappling to forecast business models and adjust operating models for the next year or two. The financial impact of 2020 and the reduction of events in 2021 will dramatically impact city clubs’ ability to invest in their facilities, which for many is their greatest asset. According to Johnson, city clubs have to understand and define their value proposition to evaluate the current business model and assess sustainability for the future. City clubs must diversify services and amenities and analyze strategic direction to evolve and remain relevant. Overall, city/athletic clubs are trying to solve three major problems: 1. Declining and disengaged memberships because members are learning to live within a mile of their homes. 2. Staff challenges include inactive/furloughed employees, employees experiencing financial hardship, low staff morale and the need for retraining. 3. Low business activity due to reduced food and beverage revenues, few overnight room sales and minimal private events. While the past several months have been hard on city clubs, the grim reality is that it could take years to get city clubs back to where they were just one year ago. But with forward SEE BOARDROOM BASICS AND BEYOND | 103
Dick Kopplin Ready For Renaissance Years COVER STORY BY DAVE WHITE, EDITOR
Sometimes the best laid plans end up being just that… plans! And what happens after that often is serendipitous. Serendipity often takes us on a path we’ve never considered but a path that often leads to a passion. In a nutshell, that describes the long, illustrious career of Dick Kopplin, a mainstay of the private club industry. It all began on a cold, snowy night in Eau Claire, WI, where Kopplin was studying for final exams during his senior year of college. The phone rang. On the other end of the line was the president of the Hillcrest Country Club. “Dick, the executive board of Hillcrest would like to meet with you at my home Thursday to discuss if you might have an interest in being our next club manager,” Kopplin related recently about what the president said. “The president told me he knew I’d been working part-time in the restaurant business to earn tuition money. “I said I’d be happy to meet with them, but that my career plan hopefully was being accepted at the University of Wisconsin law school after I had graduated with a double major in English and history from the University of Wisconsin at Eau Claire. I was interested in politics and was elected as the youngest member in the history of the city by defeating an incumbent running for the Eau Claire City Council. “My uncle served as our state representative in the legislature, and I envisioned myself following in his political footsteps,” he added. “My college roommate and I had been sharing a small apartment and pooled our weekly grocery money of $10 each. I’d shop and do the cooking and my roommate did the dishes. There were some days when our final dinners that week featured a can of Spam and baked beans, although we always saved a little money for Friday nights when we’d walk five blocks and buy a cold mug of Michelob at Smitty’s Tap Room for 25 cents. We had enough money for two each. Those were the days!” Dick Kopplin’s plans changed that chilly December evening and set him on a path that has culminated in an outstanding 45-year career. No question, he’s been as resilient as the private club industry itself. “The club executive board offered me the club manager’s job at a salary of $800 a month and a $50 a month car allowance. I thought I’d won the lottery!” Kopplin exclaimed. Reality set in on a Monday morning, his first day at the club.
20
BOARDROOM | MARCH / APRIL 2021
“I walked into the club to assume my new duties as club manager, and there were three gentlemen waiting in the lobby. ‘It was very nice for some club members to welcome me on my first day,’ I said to the club’s office administrative assistant. “’Dick, those aren’t club members; they’re vendors we owe money to and they heard that a new club manager was starting today. They’re here to collect,’ she replied.” Kopplin quickly discovered the club was out of money, had lost over a hundred members and had experienced dishonest management and fraud over the previous couple of years. “I was overwhelmed by the financial issues…a 24-yearold management neophyte who didn’t know the difference between a balance sheet and a profit and loss statement,” Kopplin related. While commenting on his fiscal ignorance and the club’s sad financial state to the club’s chef, one of the dishwashers overheard his comments and injected, “Mr. K, I’m an accounting and finance major in my senior year in college. Maybe I can help you.
“’Roger,’ I said, ‘take off your apron. Your dishwashing days are over.’” It happened to be the most challenging work Kopplin had ever taken on. Still, within three months, he and Roger, the financial guy, had discovered the financial holes and put together a recovery plan for Hillcrest. “After one year, the board promoted me to general manager and rewarded me with a bonus and substantial salary increase. When I left three years later for a general manager opportunity in Minnesota, the club had money in the bank and prospered with the third largest club membership in the state of Wisconsin,” he recalled. The Club Managers Association of America (now Club Management Association of America) has also played a considerable role in Kopplin’s life, as has his work in the life of the association. “George Carroll, a fellow manager in Minneapolis, invited me to my first CMAA meeting, and I found two very valuable features in CMAA. First was the obvious focus on education and the second and, probably as valuable, was my networking ability with other managers.” Kopplin’s work with CMAA
➤
KOPPLIN KUEBLER & WALLACE PARTNERS PICTURED L-R
Richard M. Kopplin, Thomas B. Wallace III and Kurt D. Kuebler
from Cover Story | 21
became a lifetime commitment that continues today. After 10 years in the Twin Cities, Kopplin moved to a residential community club in Florida and was there only a year when he was offered the opportunity to participate in the development of Castle Pines, a few miles south of Denver, CO. However, after three years of a dismal economy, the clubhouse project he was working on stalled. But while at Castle Pines, Kopplin served on the executive committee for a PGA event, The International, and enjoyed three years of observing a very successful and unique tournament. So, it wasn’t a lost opportunity… but there was more to learn and understand, all of which set in motion a vision for the future – running Desert Highlands in Scottsdale, AZ. “While having lunch with our golf professional, he shared a magazine focused on golf course communities. The cover picture featured the stunning clubhouse of Desert Highlands in Scottsdale, Arizona,” Kopplin added. “I kept the magazine on the top of my desk and while looking at it every day wrote in my journal that, ‘Someday I will manage Desert Highlands.’ Be careful what you write in your journal. Was it not Goethe who said, ‘Even when you don’t know how, believe that you will?’” Kopplin believed in the will, and the way happened shortly after. “One afternoon, while in my Castle Pines office, the developer of Castle Pines, Jack Vickers, called to say he had a friend in town who would like to see the property. He asked me to show him around.” That three-hour tour around Castle Pines with Lyle Anderson resulted in another incredible opportunity in Kopplin’s career. “As we were saying goodbye, Lyle said to me, ‘Dick, I’ve developed a couple of golf course communities in Scottsdale, Arizona and I really need someone like 22
BOARDROOM | MARCH / APRIL 2021
you to oversee the club operations. Do you think you would have an interest?’ he queried.” Two months later, Kopplin arrived in Scottsdale as the new director of club operations for Desert Highlands and Desert Mountain. “During one of the many conversations we had over the years, Anderson asked me if I’d ever thought of starting a company in the private club business to focus on what I had done for his clubs – finding all of the key personnel, including general managers, golf professionals, course superintendents and chefs.” “That started me thinking,” Kopplin said, but it was a process that was going to take a while, because after six years at Desert Highlands and Desert Mountain, Kopplin, recruited by KSL, took over the club operations at PGA West in La Quinta, CA. “I continued to reflect on Lyle’s question and in April 1996 decided to venture out on my own by starting Kopplin Search, Inc., a search firm for the private club industry,” Kopplin recalled. Enter John Fornaro. About the same time, another industry entrepreneur, John Fornaro, happened to be launching a new publication for the private club industry, BoardRoom magazine. “While in California, I was fortunate to meet John Fornaro. I told John the magazine was a great idea and, in the very first issue, took out a full-page ad for Kopplin Search, Inc.” That happened to be the start of a long and prosperous relationship for both Kopplin and Fornaro. ➤
IDENTIFY AND HIRE TOP CANDIDATES for key executive leadership positions by utilizing the expertise of the PGA of America’s Career Services department and Senior Consultant, Michael Leemhuis, owner of Leemhuis Consult LLC.
pgacareerservices.org/execusearch
from Cover Story | 22
Kopplin has not only continued to advertise with BoardRoom for the past 25 years, but he and his compatriots have also written dozens of articles on various club management and governance topics for BoardRoom. “John’s proven to be a good friend and we have watched our respective businesses grow and prosper over time,” Kopplin recalled recently. When he started the company 25 years ago, Kopplin decided a great way to market his company’s search services would be to offer information and education sessions to the many CMAA chapters around the country. “I shared some of my experiences from decades of club management and talked about how club managers could more effectively work with their board members. John Fornaro was very supportive of my efforts and BoardRoom magazine often shared the same message I was delivering to club managers around the country,” Kopplin added. Shortly after launching his company, another fortuitous meeting occurred. A mutual friend introduced Kopplin to Steve Graves, the owner of Creative Golf Marketing, another industry consultant. “I found we shared the same philosophy about private club governance and Steve introduced me to the board of a small club in Kansas needing a new general manager. That happened to be a successful search, after which I began to receive calls from other potential clients. My search business began to flourish,” Kopplin recalled. “Club executives have always been eager to discuss the ‘best practices’ for private club management and governance. I delivered hundreds of presentations to individual clubs as well as CMAA and CMAA’s chapter meetings. As well, writing in every issue of BoardRoom magazine provided great exposure for the company.” Kopplin added: “No question, my focus on education resonated with club general managers and club board members.” There’s an adage, especially for budding entrepreneurs, “One and one makes three.” After working solo for a couple of years, Kopplin realized he needed some help. One person couldn’t do all the work required for a growing company, so Kopplin turned to Nan Fisher, whom he recruited and had worked with for many years at Desert Mountain. “Nan took a chance on helping me build this little company and has been with me, providing strong administrative support, for 23 of the last 25 years,” Kopplin said. As Kopplin Search, Inc. grew, so did the need for more help. Kopplin fostered a friendship with Kurt Kuebler and lured him away from a successful management career to join the Kopplin group as a partner. SEE COVER STORY | 94 24
BOARDROOM | MARCH / APRIL 2021
KOPPLIN’S ACCOMPLISHMENTS RECOGNIZED BY JOHN FORNARO, PUBLISHER Today, we honor Dick Kopplin for the part he has played in the success of BoardRoom magazine. Both, Dick and I started our companies at the same time… 25 years ago. Kopplin Search, founded by Dick, happened to be our first advertiser and has been advertising with us for 25 years. Dick’s support has been another significant contribution to us, and a belief, many in the industry were not accepting, of the need for development of the private club board of directors. That belief? That an informed board is good and uninformed board member is not. Today it continues that many clubs are setting there board members to fail, and increasing micromanaging, by not informing and developing the board’s knowledge along with the detailed roles and responsibilities for board members. Dick, and his partners ¬in Kopplin, Kuebler & Wallace – Kurt Kuebler and Tom Wallace – along with their staff play a vital role in our industry. There is a talent in whom he has chosen as partners. Dick is not uncomfortable sharing his strengths and weakness, and he has made sure his partners fill in the areas that help make the company better. Let’s not forget, the qualified general managers KK&W places at private clubs across the country and helping provide millions of private club members a great experience and purpose for the remaining years of their lives. Yes, what Dick has built benefits every member his company has helped. Dick’s values and principles, through his vision and innovation place Dick Kopplin as one of the most influential people in the industry. I love Dick as a person and am grateful to have him as my friend. As BoardRoom magazine celebrates its 25th anniversary, I hope this recognition of Dick will remind him of our company’s appreciation for helping make BoardRoom magazine successful by being who he is and what he has accomplished. B R
lifestyle master planning • clubhouse design + detailing • furnishings
siwanoy country club - bronxville, ny
Clubhouse Restoration Master Plan Interior Design - Casual Dining
1901 gallery
terrace bar
Boardroom Magazine Excellence in Achievement Award Winner
contact: Craig J. Smith csmith@c2limited.com
Christina H. Romann cromann@c2limited.com
Tel: 203.259.2555 www.c2limited.com
BOARDROOM DESIGN FEATURE by Dave White, editor
What Should Clubs Focus On in 2021? CHANGE IS HAPPENING BECAUSE OF THE PANDEMIC, SO WHAT MUST PRIVATE CLUB DO IN FUTURE TO SEEK AND RETAIN NEW MEMBERS.
No one really has a playbook of what should happen as the world comes out of a pandemic. But here are some suggestions…from the point of membership, amenities, and what clubs can and must do to attract members in the future. But clubs need members committed to a long-term future to help their club be successful…members who want to belong to a likeminded community. That reason hasn’t changed, because members want the experience of a community… the connections and relationships that private club can offer. Relationships are the magnet. While this hasn’t changed, what many in the industry today can do is facilitate those relationships through increased and more attractive amenities, outdoor activities that foster the relationships, and which fit the needs of members today. Certainly, in the last decade there has been significant change. No longer is cell phone usage an issue for most clubs, and many clubs are repaying visits to policies affecting the wearing of denim (dress codes), family and child policies, and amenities offered to attract families that make the club more family centric. Who should clubs focus on for the future… Millennials, Gen X’ers, iGens? Families children, golfers? Many clubs have developed virtual experiences for their member, including online classes, workshops, virtual happy hours, game nights etc., during the pandemic Many have been successful and likely cause for these experiences to continue. Clubs must rethink how they brand themselves. Adding a focus on sustainable practices, incorporating new technologies and even creating a virtualization strategy will be key to attracting Millennial and Gen-Z members. Country clubs have to change the image of what exclusivity and networking look like. Traditionally, country clubs have depicted the working man having a business lunch and round of golf to network for his next play at the office. Nowadays, there are professional women and young, urban creatives looking for a place to fit in. That’s good news for country clubs, who can rebrand themselves to be more inviting to non-traditional clientele. Once thing is certain: The pandemic has initiated change and it’s change that will continue and private club boards must listen to their members, be willing to make changes that members if they are to be successful. For certain, board members must be open to change. Undoubtedly communication will be the key to success.
28
BOARDROOM | MARCH / APRIL 2021
So, what should private clubs focus on to be successful in 2021 and beyond. Here are the thoughts of different groups and people in the industry. ANGELA GRANDE PRESIDENT ANGELA GRANDE DESIGN
Successful private clubs today should be focusing on trends such as: • Offering sports such as racquet, tennis, paddle ball and the increasing popular pickleball • Excellent golf facilities • Upgraded adult pools and children’s pools that include fun amenities • Outdoor bars with dining and firepit lounge areas • Snack bars • State of the art fitness and wellness areas • Golf training centers with added food and beverage venues • Member wine storage with tasting and private dining • Children’s rooms offering day care and programs • Office space for meetings, computer and cell phone use. All of these are driving the experience that members are looking for when joining a club. SUSAN BOZEMAN BOZEMAN CLUB AND CORPORATE INTERIORS
A main area of focus is outdoor dining. It’s now a crucial component of private clubs, so all facets must be addressed: Spaced tables, bars, grilling areas, outdoor kitchens, with heaters and fans to accommodate all-season dining. Where indoor dining has resumed, furniture must be easily rearranged and cleaned to provide appropriate spacing. In total, clubs must provide personal service in ways that are safe and continue to demonstrate the benefits of membership.
CRAIG SMITH PARTNER, CO-CREATIVE DIRECTOR C2 LIMITED DESIGN ASSOCIATES
With the exponential rise in rounds of golf because of the 2020 COVID shutdown, our club partners have been scrambling to adapt, adjust and increase their outdoor dining, lounge and congregation spaces to provide a safe place for their members to enjoy and breakaway from the monotony of the stay-at-home order implemented in many states. The key to making these spaces work for the long term is by taking a deep strategic look at creating spaces that allow for social distancing and the potential introduction of new and innovative food and beverage programs and offerings that will keep members engaged and excited to be at their club. It is key that your furniture layouts create experiential zones be it active, social, dining or introspective. When creating the contextual aesthetic, do so in a way that is inviting, enjoyable and gives one a sense of safety. Simply eliminating capacity and spreading out your furniture layout be it indoors or out is not welcoming, nor will it provide a setting that will encourage members to come to the club and linger longer. TIM CASTOR CASTOR DESIGN ASSOCIATES, INC.
As we approach the age of post-COVID, we are experiencing clubs adapting to three design components for a successful 2021. First is outdoor dining where clubs are now doubling their outdoor dining capacity. Next focuses on outdoor fitness classes. This includes spin, treadmills, and yoga. Lastly, clubs should be offering smoothie and health food options in addition to the fitness component. RICK SNELLINGER, PRESIDENT AND CEO CHAMBERS
Clubs have become a safe haven for members and have offered incredible value and convenience with outdoor service, grab-n-go meals, carry-out dining and more. These lifestyle benefits will continue to serve members post-pandemic. Clubs must also continue planning ahead for facilities enhancements, but on a shorter horizon of three to five years rather than seven to 10 years. Sustainability should also continue to be a strategic focus as this will become increasingly important in the months and years ahead.
KELLEY HARRIS HINT | HARRIS INTERIORS
In this new year, it is more important than ever before for clubs to focus on making their members feel comfortable at their club. Members continue to appreciate an experience when they spend time at their club, so the greater challenge is to provide one that makes them feel safe. Al Fresco dining and gathering has become even more popular, so clubs should make sure their outdoor furnishings and amenities are in good order. BRYAN D. WEBB MAI | MARSH & ASSOCIATES, INC.
Convenience for the whole family is key for 2021, so focus on amenities. Parents are looking for a safe environment for their kids with activities like tennis lessons or teen retreats, while they enjoy the links, relax at a spa or workout in a fully equipped fitness facility. Traditional club dining is always a must, but make sure there are also casual dining options so the whole family can reunite and relax together. CARMEN J. MAUCERI, CCM COO/GENERAL MANAGER NAPLES, FL
Now more than ever, people are joining clubs to become part of a fabric, a community. It will be critical for clubs to ensure new members feel engaged and not lost within their first few months. With that said, we’ve had to re-establish what our onboarding processes look like during this pandemic. One strategy was virtual “happy hours” for new members to meet each other. Each “happy hour” event is themed and designed to encourage engagement and interaction. SEE BOARDROOM DESIGN | 90
RITA BARRETO
EXECUTIVE COMMITTEE
Rita Barreto is an engaging, motivational speaker on the national stage. She also has 30+ years as an award-winning human resource executive for a Fortune 500 company. She offers customized, industry-specific consulting services to navigate change and build an agile and thriving company culture. Don’t hesitate to visit toptierleadership.com, and then give Rita a call to book a free 20-minute consultation.
Roadmap to Recovery Begins with Your Employees Last year was probably the most challenging year you and your employees all the disruption, employees today need to feel part of something bigger than themselves. have ever experienced. It’s a basic human need. Where does it all The COVID-19 pandemic resulted in disrupted work schedules, rebegin? It begins with management. Managers mote work and layoffs. One of the biggest impacts that continues today who listen to their employees, take action on is the amount of stress it is causing workers. While each of you has enfeedback and openly share information create a countered difficulty, no two people are alike. sense of belonging. Expectations have changed on all sides of the club equation – manCommunication is key. If you haven’t conducted agement, member services and employees. Leaders know that a solid an employee survey in a while, now is the time to roadmap to recovery is imperative and hopefully, you have begun that check in with your employees and identify the lesprocess. Start with your executive department heads, and then come sons they learned in the past year, what they feel together collaboratively to reestablish protocol guidelines that are efneeds attention and how to best lead each person. fective and fair across your entire organization. It’s not a one-size-fits-all. Execute with excellent communication. Focus on creating a healthy Recognition. Research states that employees and productive work environment. Remember, if you don’t have emneed some form of recognition every seven days. ployee satisfaction, you won’t have member satisfaction. Here are four It doesn’t have to be a large gathering or somethings you can do to boost morale and continue to build a winning thing formal. It could be a quick conversation team in times of rapid change: about a job well done. • Communicate clearly, be your authentic self and demonstrate Put it on your calendar and be deliberate about empathy that inspires your workforce to step up to recovery noticing a job well done and celebrate what you changes. Put your workforce at the center. New policies and initiamay have missed during the challenging COVID tives begin with knowing what matters to them and what concerns times. When you give feedback, highlight not only they might have. the result(s) but what that employee did to achieve • Create a compelling reason why change is necessary. List reasons those results. for quickly ramping up a recovery plan and why you need every emFor example, if you mention that they were well ployee to be a catalyst for positive change. When your team underprepared, used excellent analytical skills, and stands the emotion and the logic, they will be more likely to embrace kept everyone’s interest by using great examples, the change and be your best ambassadors. it tells the employees what you are recognizing. • Encourage feedback, be open to suggestions and communicate Employees will know what to continue to demonyour commitment to exploring new ideas, as well as sharing new inforstrate. Employee recognition costs virtually nothmation proactively. ing. Three ideas that will make your employees • Include a call to action or next step so there are no misunderstandstrive to be the best: ings. People will support what they help build, so lay out channels that • Personal one-on-one feedback from their allow each person to contribute. manager and a short memo to their employee file Culture. Every workplace has a culture, but what is it? Workplace will reap tremendous results in improved perforculture is the characteristics, behaviors and personalities that define mance, loyalty, attitude and productivity. the organization. It’s about how people interact, the rhythm of the • Public recognition of an outstanding job at a business, values, traditions and beliefs. It includes the unwritten rules weekly staff meeting for an individual who went about how things are done. above and beyond, or a shout-out to an entire deWhy is it important? Well, it defines how engaging or toxic an orpartment that produced a successful event, tourganization is – and it drives your ability to attract and retain the best. nament, etc. Applicants and employees continually assess if there is a “fit” between • Stories about deserving employees in the their values and the club’s values. monthly newsletter or a shout-out or profile on Belonging. Remember when you were in grade school and you were your Facebook page. B R selected to be part of a team? That feeling was exhilarating. Well, with 30
BOARDROOM | MARCH / APRIL 2021
We’re behind you,
100%.
Two years ago, after having difficulties finding the “right fit” for our Director of Food & Beverage position, I reached out to Gecko Hospitality to see if they could assist with filling this key position on my team. Jeremy was very responsive and professional. He requested a meeting at the club to meet some of the key players and tour the facility. He made time in his busy calendar to do this right away...and a stream of applicants opened immediately. Upon our request, a limited number of highly qualified individuals were presented, and I was able to make a wellMatthew Linderman, CCM informed hiring decision rather quickly. In fact we hired President/COO/GM Boca West Country Club two candidates from the one job search!
To demonstrate our commitment to the long-term success of our relationship, we offer an unprecedented one-year guarantee. Gecko Hospitality was founded to serve the hospitality industry honestly and prudently. We operate on a lean overhead and share our savings with those who support us. Competitive research will confirm that our moderate fee structure sets us apart. Over the past 21 years, we’ve placed more than 21,000 professional managers and earned the respect and loyalty of our clients.
Our difference is your advantage. With a combined 1,900+ years of industry-related experience, Gecko partners knows how to match candidates that will help you achieve your goals.
A solid approach to Club Industry recruiting. Contact us today. We’ll connect you to your next awesome employee.
Recruiting all levels of management positions for the club industry: Country clubs, golf clubs, yacht clubs, tennis clubs, city clubs, business clubs and equestrian clubs. We know the best person for the position can come from a variety of industries, not just the obvious one.
Connecting people and changing lives, one career at a time.
RON CICHY Dr. Ronald F Cichy, O.M. is professor emeritus, Michigan State University.
EXECUTIVE COMMITTEE
Curiosity Intelligence - Part II The September/October 2020 issue of BoardRoom unveiled curiosity intelligence (CI). In brief, CI is an intended assessment of a person’s desire to know. The higher the score, presumably the more curious the individual is. Begin with the person CI begins with the person and that individual’s desires, openness, marvel, hunger, interest, improvement, passion, drive, exploration, perseverance, knowledge, strength, and growth. These descriptors paint a portrait of the curious one, one who never stops searching. Curiosity is very much personal and individualized. What one person may find interesting, another may simply not. Those who are curious are genuinely interested in and open to others. They are practicing listeners who encourage others to talk about themselves. Conversations about others’ interests make others feel important, while satisfying listeners’ curiosity. Those who practice CI strive to figure out the unknown. They are most interested in trying different ways to better understand others. Curious people are interested in why others act as they do. This may require a change in the curious one’s actions. Curious club leaders discover ways of reinventing themselves and their positions. It is through this reinvention that the club improves in ways relevant to members. This constant action to improve is fueled by the person’s passion. Passion drives the person to succeed. Curious people have a vision for the future that propels them to see themselves in a better tomorrow. They persevere to find the truth. An experiment with the CI assessment Make 12 copies of the CI assessment on page 32 in the September/October 2020 issue of BoardRoom. Choose a day in each month (e.g., the second Wednesday) on which you will complete the CI and compare it with previous CIs. Those items scored four or five are your strengths. Your strengths come from knowing the truth and acting to improve. CI people know what they are most interested in exploring; they use strengths to lead. 32
BOARDROOM | MARCH / APRIL 2021
Items scored one or two need improvement. For example, the person with the mindset that they are so overwhelmed they cannot possibly take on something else (e.g., CI) is in danger of closing doors to others, stymieing growth, and reducing interest in exploring curiosity of the moment. Items scored one or two need to be worked on. After completing the first CI assessment, tuck it away in a folder. When you complete additional CI assessments, look for patterns. Are any of the items consistently high (or low)? After six months, you will have a clearer picture of your CI. Perhaps even clearer after a year. Now consider your response to item 20: “ADD YOURS HERE: _____________ you can create your own item here.” Has it changed over time? Has it remained the same or has it morphed into something else? USES FOR CI CI is a tool for self-evaluation. CI can vary from project to project, and from day to day. Does a person’s CI measure opportunities for self-improvement? Could CI be a predictor of life success, just as emotional intelligence is? CI may be one of several assessment tools utilized in a private club. CI may be used to prescreen applicants for leadership positions (paid or volunteer) in the club. Perhaps a higher CI means the person is more suited to a position where curiosity is more important than simply maintaining the status quo. High CI in a club: Where is a relatively high CI desired in private clubs? For starters, membership recruitment and retention, food and beverage menu development, health wellness, and marketing are just some of the areas requiring curiosity. Personal CI: What about the use of CI in personal development and growth? Is the individual cognizant of their actions driven by curiosity, and how do these behaviors affect personal relationships? Are elements of curiosity included in the individual’s personal development plan? A new board member may be curious about the skills and knowledge essential to becoming an effective board member. These skills and knowledge, framed with a curious attitude, will lead the person and the club. A department head might be curious as to what knowledge, skills, and attitudes (KSAs) are necessary to be promoted to GM/COO. The person can work on developing these KSAs, perhaps with the assistance of a mentor who understands these KSAs. Conversation starters: CIs could serve as a conversation starter among club BOD members. They begin with a self-evaluation, acknowledging the potential bias inherent in self-examination. Along with other self-assessment tools (e.g., emotional intelligence, EMPATHY) the CI assessment provides a pathway to improvement. It is part of a personal and professional development plan, including SMARTER goals. B R
Fort Worth | Palm Desert | scottsDale | Beverly hills cluBDesignassociates . com | 866-484-9853
The Lodge at Cordillera Ranch & Country Club, Texas
Two Award -Wi n n i n g Fi r ms...O n e A ma zi n g Tea m . Master Planning | Architecture | Interior Design | Consulting 2020 BoardRoom magazine “Excellence in Achievement” Award Winner
scottsDale | Beverly hills | Fort Worth | Palm Desert Phxarch . com | 888-217-1117
The Summit Club of Tulsa, Oklahoma
SCOTT FERRELL Scott Ferrell is vice president of development at Bobby Jones Links. He can be reached via email at scott.ferrell@bobbyjoneslinks.com.
EXECUTIVE COMMITTEE
Considering Renovating?
Tips for Choosing a Golf Course Architect Golf courses are “living and breathing creatures,” it’s back to its original design. This sometimes occurs when the original designer gained notoriety from a certain style, a la Donald often said. Ross. Some architects have positioned themselves as experts in But unlike humans and other beings, golf courses the restoration of courses done by a particular designer. This may can live forever if properly nurtured. Especially when make your architect decision far easier. our wonderfully talented golf course superinten2) What are our objectives? Are they simply technical imdents administer that daily TLC. Over time, however, provements, or are we trying to sell more memberships or real surgery or a makeover may be necessary to keep a estate? Most designers check the box when it comes to a solid golf course “healthy.” That’s where golf course archiarchitectural foundation, particularly if they are members of tects come in. the American Society of Golf Course Architects (ASGCA), which Many golfers fancy themselves as having an “aris recommended. But not all architects have the notoriety and chitect’s eye” but typically underestimate the combrand to move the marketing and sales needle. That is why plexities of golf course design. It takes many years to signature architects are often hired as a differentiator for new hone the craft, and successful architects often start development projects. their careers in the dirt. There’s no substitute for
Given the competitive state of the golf course design business today, it’s appropriate to ask for conceptual sketches unique to your course in a final proposal/presentation. These materials will communicate a unique vision and lead to meaningful and relevant design discussions specific to your course, and hopefully, a clear and educated choice! working on a golf course construction crew to understand the design process. Golf course architects are, in fact, both technicians and artists. If your club is considering a renovation, asking the following questions will help you begin the journey: 1) Are we renovating or restoring? There’s a difference. Renovating may be driven by many factors, such as drainage issues, catching up with club and ball technology, aging turf, or simply to create a better and more playable golf experience. While restoration may include several of those factors, it is generally motivated by the desire to take the course 34
BOARDROOM | MARCH / APRIL 2021
3) What is our budget? Some architects have the reputation of taking an unlimited budget and doubling it. Be careful. A defined budget is a must to keep control of the project. And the finished product must also fit into your annual maintenance budget. Establish a shortlist of three designers to invite for interviews and final presentations. These questions will help whittle it down: 1) What is your design philosophy? This may seem like an obvious question, but the answer can be very telling. If an architect starts talking about creating landforms, heavy bunSEE EXECUTIVE COMMITTEE | 94
HINT|HARRIS INTERIORS www.hintatlanta.com
DAVID W. LACEY
EXECUTIVE COMMITTEE
David W. Lacey was a two-term member of the board of governors at the Philadelphia Cricket Club. David can be reached at (215) 850-7999 or via email: dwlacey44@gmail.com
The Value of a Dashboard As a Management Tool General managers at leadership clubs have designed and set up dashboards to track key performance metrics for their clubs. They report monthly or quarterly to the board of governors on the progress of the dashboard metrics. The dashboards are likely to include these metrics: 1. New member applications as a percentage of inquiries about joining the club. 2. The actual cost of acquiring a new member as a percentage of the marketing budget. 3. The operating margin of member-sponsored parties or events as compared to the operating margin of corporate events, e.g., golf outings, tennis round robins. These metrics are tracked as a percentage of the hospitality revenue budget. 4. The potential advantage of a small, focused menu versus a seasonal menu. This metric is viewed by monitoring members’ dining choices. These four metrics represent a sample of a club’s overall dashboard. Typically, the number of metrics range from five to eight performance indicators and require a contemporary technology-based system to capture the data for each metric. The data analytics which comprise a dashboard represent the operating priorities of a club. Therefore, a dashboard is customized to show what is important to a club, as defined by the general manager and the leadership team and approved by the board. A dashboard creates a focus for the operating work of the leadership team. That focus inevitably leads to action. The dashboard signals to employees what is important so there is no guessing about what to do. A dashboard’s success requires the leadership team to reinforce its commitment to the dashboard, to discuss with employees their actions to address the various metrics, and to offer feedback and coaching about performance successes and shortfalls. Exhibit A creates a picture of a dashboard and its implications for action. A dashboard defines what is to be done. The how of making progress toward metric achievement depends on a continuing dialogue between the leadership team and employees. Operational success at a club comes from attention to the what and how, for sure. A dashboard works well for club priorities. I will use human resources to illustrate a department dashboard. A human resources dashboard could include these metrics: 36
BOARDROOM | MARCH / APRIL 2021
1. 2. 3. 4. 5. 6.
Turnover rate by employee group: exempt and non-exempt Employment offer to acceptance ratio Number of days to fill an open requisition Revenue per employee Absenteeism rate for exempt and non-exempt employees Wait time for promotion.
Metrics 1, 3 and 5 should be common for human resources and can be tracked by HR alone. Metrics 4 and 6 are likely to require cooperation with other departments. The metrics on each department’s dashboard should support and align with the club’s overall metrics. I am advocating a dashboard for your club because it: 1. Creates a focus on the important work to be done 2. Aligns the overall club dashboard with department-specific dashboards 3. Allows the leadership team to track progress, reward employees for success and correct quickly potential shortfalls 4. Provides factual evidence for feedback to and coaching of employees 5. Offers a clear, concise and focused reporting format for discussion between the leadership team and the board of governors. For these reasons or benefits, I am recommending your club adopt a dashboard. B R EXHIBIT A: A CLUB DASHBOARD
DEAN WOCHASKI Dean Wochaski, CGCS is the co-owner/president of Golf Maintenance Solutions and can be reached at (757)-685-5556 or via email: dean@golfmsolutions.com, www.golfmsolutions.com
EXECUTIVE COMMITTEE
What Is Leadership? There is a difference between being a supervisor and being a leader. A supervisor monitors job performance and often takes the approach that they are in charge. Leaders mentor, coach and work with their employees to inspire greatness. Quite often it is easy to recognize a leader because they all have similar sets of skills or personality traits that seem to be in their “business DNA.” The following is a list of skills that I have recognized through the years that resonates across inspirational leadership: Passion for what you do and how you do it. Have you ever heard someone say, “I can’t believe I get paid for doing this”? People with passion truly enjoy what they are doing and leading with passion is infectious. Great leaders are passionate about many things, including the people they work with and success for the entire company. Inspires and makes employees excited about their work by managing with inspirational leadership. Employees truly have the desire to do a good job, but to do a great job they need to be inspired. Good leaders achieve this through work ethic, professionalism, communication, discipline and implementation to produce a quality product. They see employees as wanting to be a part of success. This often becomes inspirational when a golfer stops a crew member to compliment the golf course. How many times have you heard, “The golf course is always in great condition”? This certainly validates and inspires better performance. Leading by example has always been a leadership skill that will build loyalty and improved work ethic by everyone. If the boss is willing to get in the irrigation trench, mow fairways, spray and work alongside others, then employees feel better about “busting their butts” when work needs to get done. The more you take part in all phases of your operation the more your employees know you are not scared of working and know what you are doing. Coaches and mentors coach employees to exceed their own expectations. A leader will coach performance and recognize ability so the “right fit job” can be aligned with the right person. A good coach spends time observing and evaluating current performance and then “coaches up” to exceed their expectations. Surrounds themselves with outstanding people because a leader can’t do everything. Quality people will 38
BOARDROOM | MARCH / APRIL 2021
make everyone successful and sustainable over a long period of time. It’s critical to build the best team possible by evaluating performance so you can continue to “raise the bar.” The quickest way to build that A-team is hire A-players. This way the coaching and mentoring is easier and the results are quicker. The sooner you surround yourself with exceptional people the sooner you will achieve sustainable success in the operation. Detail-oriented in all phases of management is a skill that you have been born with. It is important with everything you do in your personal life and it resonates directly with your job. If you are lucky, you may get to work under a supervisor who coaches you on how to drive detail. The better the detail and organization, the less pressure you will put on yourself and your employees in the workplace. Delegating authority will build trust and loyalty with your key employees. I believe it is critical to getting things done in our jobs. I also believe this can be abused by a supervisor who delegates everything no matter how big or how small the task. The key is to delegate with a purpose by communicating the need for help and what the end goal will be for retaining the help. This critical path will build ownership and more will get done even without delegating. Stays positive under adversity or changing environments. There is not a well-respected leader who does not carry a positive tone in the workplace. The importance of a “can-do approach” will increase productivity in your team. A true test of how positive a leader you may be is how you react during adversity. Are you finding fault or finding positive ways to your solution? Excellent listening and communication skills are true at our workplace and beyond. If you have been told you are a “good listener,” that is a compliment. Do you really listen to what your employees have to say or are you just waiting to get to the point you want to make? Truly listen because your response may change what you do. Then be sure to communicate through whatever means that will provide a true connection to your emSEE EXECUTIVE COMMITTEE | 95
MELISSA LOW
EXECUTIVE COMMITTEE
Melissa Low, CAE, is the senior director, communications and advocacy, for the Club Management 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
New Rules on Tips, Independent Contractors, and H-2B Visa Updates It has been an impactful fall and winter for federal rules and regulations affecting the club industry. Here’s the latest information on the availability of H-2B visas, and changes to the tip and independent contractor rules by the Department of Labor (DOL). H-2B visas: supply and regulation: In FY2021 appropriations for the Department of Homeland Security (DHS), clubs received positive news regarding access to additional H-2B visas. Similar to past years, DHS is authorized to increase the H-2B cap for FY2021 by up to about 69,000 visas if it determines that the needs of seasonal businesses cannot be met with US workers, in consultation with the DOL. As of Nov. 16, US Citizenship and Immigration Services had received enough petitions to reach the congressionally mandated cap of 33,000 on H-2B visas for temporary non-agricultural workers for the first half of FY2021. Further, the DOL is prohibited from enforcing the corresponding employment and three-fourths guarantee provisions of its H-2B regulations, the use of private wage surveys is now permitted, and the maximum season is now increased to 10 months, as opposed to the nine months allowed under existing regulations. As part of its annual review, DHS, in cooperation with the Department of State, has announced the list of countries whose residents are eligible to participate in the visa programs in 2021. After a two-year hiatus, the Philippines has been returned to the eligible list while Samoa and Tonga have been removed from eligibility. DOL finalizes tip sharing rules: On Dec. 22, the DOL published a final rule adjusting the tip provisions of the Fair Labor Standards Act (FLSA). The DOL began the rulemaking process in October 2019 as a clarification to a policy rider enacted by Congress in the FY2018 Spending Package, passed in March 2018. In the final rule, all clubs should be aware of the following provisions: • Employers, managers, and supervisors are explicitly prohibited from keeping tips received by employees. This includes any means, either directly or indirectly, such as a tip pool. • New civil penalties will be imposed when employers unlawfully retain tips meant for employees. Penalties incurred could range up to $1,100 per violation. • Any club that has established a mandatory tip pool must fully distribute the tips “no less often than when it pays wages.” 40
BOARDROOM | MARCH / APRIL 2021
For clubs that use the FLSA tip credit: • Employers would be allowed to use the tip credit for “any amount of time that an employee in a tipped occupation performs related non-tipped duties contemporaneously with his or her tipped duties, or for a reasonable time immediately before or after performing the tipped duties,” thus eliminating the previous 80/20 doctrine. For clubs that do not use the FLSA tip credit: • Employers would be able to include a broader group of employees, such as back of the house staff like cooks or dishwashers, in a mandatory, non-traditional tip pool. • Employers would be subject to new recordkeeping requirements for clubs who establish such a mandatory, non-traditional tip pool. This would be similar to what is required of employers who take the FLSA tip credit report on IRS Form 4070, the Employee’s Report of Tips to Employer.
DOL finalizes independent contractor rules: On Jan. 6, the DOL published a final rule which outlines how clubs and employers should determine a worker’s status as an employee or an independent contractor. The final rule adopts the economic reality test that considers whether a worker is in business for themselves (independent contractor) or is economically dependent on an employer for work (employee under the FLSA). Further, it establishes two core factors for consideration when determining the degree of economic dependence: the nature and degree of the worker’s control over the work and the worker’s opportunity for profit or loss based on initiative and/or investment. Clubs and other employers should use the other three identified factors as guideposts in their analysis, including the amount of skill required for the work, the degree of permanence of the working relationship between the worker and the potential employer, and whether the work is part of an integrated unit of production. The DOL published a draft of the rule for comment in September and accepted more than 1,800 comments through October. The rule became effective on March 8. Before making any changes to employee classification, clubs should consult applicable state and local laws. While the DOL and FLSA establishes regulations for covered workers, it does not supersede more protective state and local mandates. BR
KEVIN F. REILLY
ED YODER
CLUB FACTS & FIGURES
Trends in the Club Industry Where Will the Future Take Us
It has been a tough year for the hospitality industry, and clubs were no exception. The next 12 months are expected to be better, but the recovery may be slow. As a result, we need to go back to 2019 to see where we think the club industry will be in 2022. STAGNANT BUT CONSTANT
For the club industry, 2019 was a great year. Spending per member was up and back to pre-recession levels. Membership grew, albeit slowly. Some of the premier clubs had waiting lists again. The economy in general, while good, showed a bigger divide between the haves and have nots, and the income disparity increased. Clubs experienced the same trend; premier clubs succeeded while many others struggled. The 2020 issue of Clubs in Town and Country, published by PBMares, LLP, covered information for 2019 and is a good basis for considering 2022. To download a copy of the publication, please visit www.clubsintownandcountry.com. The survey of overall club membership for country clubs continued to show a stagnant membership base, but this was different depending on the quality of the club and its location. One new trend we began tracking several years ago was the average full member turnover per year. This shows the number of new members clubs need to attract to stay constant. It also provides a barometer of expected funds coming in through initiation fees. Country clubs had a good year in 2019, with a full member turnover rate of five percent. City club member turnover remained constant with a turnover of about eight percent. While country clubs seemed to remain consistent in 2020, expect this number to dramatically increase for city clubs because of COVID-19.
IMPACT OF COVID-19
The pandemic decimated clubs for quite a while. They were forced to close, then started to pick up over the summer. In the fall, some states began to pull back again. While the stock market is strong, the economy is not, and hospitality is the most directly impacted industry. Yet the club industry adapted fairly well. City clubs were impacted the most. They had to close, and people stopped working downtown; there were fewer people to use city clubs even if they could reopen. In addition, much more of a city club’s revenue comes from non-dues sources, which are directly impacted by closure. Also, since city club initiation fees are usually not as much as country club fees, members are more willing to drop their membership. And businesses have been revisiting the need for maintaining a membership in a club if much of the workforce is remote. Country clubs, on the other hand, receive around half of their revenue from dues. This funding source remained consistent during the shutdowns and reduced service. While every state was different, several states did allow golf and other outdoor activities. Most country clubs established remote methods of serving their members, such as food to-go, online bridge clubs, and remote committee meetings. It is interesting to note that successful clubs may have had more contact with their members, although remotely, than in a normal year. As the summer progressed and clubs were given more flexibility, many became a haven for their members. Rounds were substantially up in June and July and other outdoor activities took off. Several clubs operated summer camps and many of the spa classes moved outside. NEW APPROACH TO FOOD SERVICE
Over the last few years, clubs finally started to acknowledge that the food and beverage department is an amenity no different than golf, tennis, or fitness. Boards started to operate more strategically and the unreasonable focus on the bottom line was tempered. However, boards still pay too much attention to the numbers in this department. It is expected that the SEE CLUBS FACTS & FIGURES | 44
42
BOARDROOM | MARCH / APRIL 2021
“I’d like to begin by saying you provided the most thorough ‘search package’ I’ve seen in my professional career. I’ve hired executives in three countries using some of the biggest search firms in North America, this is the most thorough presentation I’ve received. Thank you.”
Tim Condon, President Diablo Country Club, Diablo, CA
LISA CARROLL
JODIE CUNNINGHAM
J. G. TED GILLARY
RICHARD KOPPLIN
KURT KUEBLER
THOMAS WALLACE
SAM LINDSLEY
MICHELLE RIKLAN
LEN SIMARD
JACK SULLIVAN
ARMEN SUNY
ANNETTE WHITTLEY
Specializing in GM/COO, CEO, Assistant General Manager/Clubhouse Manager, Director of Food and Beverage, Executive Chef, Director of Golf/Head Golf Professional, Golf Course Superintendent/Director of Agronomy, Director of Tennis/Director of Racquets, Fitness & Wellness Director, Chief Financial Officer, Director of Finance, Controller, Membership and Marketing Director Searches, and Consulting Services for Private, Resort and Developer Owned Properties, Clubs and Communities as well as Senior Living Communities and Property Owners Associations.
WWW.KKANDW.COM CLEVELAND
/
EXECUTIVE SEARCH FIRM OF THE YEAR 14TH YEAR IN A ROW
DENVER
/
JUPITER
/
|
CLUBLEADERSHIPALLIANCE.COM
NAPLES
/
NEW YORK
/
SCOTTSDALE
/
WASHINGTON D.C.
from Club Facts & Figures | 42
2020 net loss for both city and country clubs will go down. However, food and beverage revenue will be substantially less, too. Food service took on a whole new look without mainstays like banquet revenue or in-person dining. In response, clubs continued with food to-go and added additional outside dining. They also got creative with events, moving some functions outdoors to unique settings, such as the driving range, and came up with other creative ways to interact with members over the holidays. Members are still unwilling to eat indoors, so it will be interesting to see the impact during the winter. CHANGING DEMOGRAPHICS
The picture of the club industry continues to evolve. In the past, we have talked about the importance of a club remaining relevant to its members. How does it adapt to a changing demographic, with millennials representing the largest age group in the United States? COVID-19 has accelerated this process. How do clubs go after women, juniors, and those who neither play golf on a regular basis nor grew up in a club environment? The National Golf Foundation has indicated that the number of females, juniors, and other young adults playing golf has remained consistent over the last five years. While the category of young adults is the largest age segment in golf, more than 40 percent of this group are only off-course participants. What can the industry offer to bring these young adults into the club community? Generally, the successful clubs are those that address this issue creatively. Clubs have become more family-friendly over the years and realize they must continue to evolve and change if they are to be successful. With potential members traveling less, it could be an opportunity for clubs to expand their base. DATA-DRIVEN FINANCIAL STRATEGY
The question becomes how to meet financial obligations while dealing with social distancing requirements and public safety protocols. In the private club sector, general managers and boards need to make every effort to make data-driven decisions to ensure the financial stability of their clubs. This means fine-tuning operating budgets with insights provided by various analytical tools and assessing the potential impact of changing economic conditions caused by COVID-19. Key metrics such as net new members, member dues, club fees, operating expenses, and debt service obliga-
44
BOARDROOM | MARCH / APRIL 2021
tions must be reassessed under “new normal” assumptions to determine and stress-test a club’s short-term liquidity. A good cash flow forecast is one of the most important elements of a liquidity management plan. Making projections about cash inflows and outflows, supported by well-documented assumptions, is a highly effective tool in diagnosing possible cash pressures. In turn, this allows management to develop action plans to avoid or mitigate the impact of potential cash shortages. Cash flow forecasts also help to guide business decisions that lead to more efficient operations by optimizing working capital. In terms of key assumptions, some of the parameters to consider include projections for the next year on a monthly or quarterly basis involving: • revenue growth • gross margins • operating margins • working capital • capital expenditures • taxes. In formulating these assumptions, it is also important to develop two scenarios: business as usual and worst case. This provides a more realistic perspective on potential operating outcomes for the organization. FINDING SUCCESS
The pandemic continues. Even with the vaccine, the restrictions will continue well into 2021. Some good news, however. At the time this article was written, the proposed new legislation (the American Rescue Plan) does allow tax exempt clubs with less than 300 employees to participate in the Paycheck Protection Program. By the time the article is published, the legislation should be law. Clubs need to be very adaptable and find out what their members genuinely want and are willing to pay for and provide members what they need in a truly outstanding manner. Successful clubs moving forward will be an oasis for their members, and the ones that do it the best will succeed. B R Kevin Reilly, J.D., CPA, CGMA is a partner with PBMares, LLP in Fairfax, VA and has specialized in the club industry for more than 30 years. He may be reached at (703) 385-8809 or by email at kreilly@pbmares.com Ed Yoder, CPA, MSA is a tax partner with PBMares, LLP in its Harrisonburg office. He may be reached at (540) 434-5975 or by email at eyoder@pbmares.com
COREY SABAN Corey Saban is the founder of videobolt.com, named the Membership Engagement Tool of the Year by Boardroom magazine. Corey can be reached via email: csaban@videobolt.com
MARKETING COMMITTEE
Communication Is Essential Leadership is a broad word with many different layers depending on your circumstance. But like President Kennedy eloquently stated, “Leadership and learning are indispensable to each other.” And this past year every industry, especially those in the hospitality space, was forced to learn and lead. The responsibilities have been daunting, from managing members often split on the deadly realities of COVID-19 to the daily pressures of keeping staff whole, committed and, most importantly, safe. We have all been living in a constant state of crisis. In times of crisis, communication is essential. When leaders fail to communicate, people speculate and create their own illusion of what is and is not happening. Just think of the telephone game you played as a kid where the message never comes back the same as it was initially delivered. This is where transparency and a can-do attitude come into play, especially now as many clubs are in survival mode. Case in point is Quail Valley Country Club in Vero Beach. As COVID-19 ravaged Florida, the club’s managing partner, Kevin Given, felt the financial strain and saw the psychological toll it had taken on his members and his employees. Revenue was severely impacted. There were no anniversary or birthday celebrations, charity events or large-scale parties. Member travel had ceased, and fatigue had set in. As you know, there are numerous leadership styles. Think Captain Sullivan calmly landing a plane on the Hudson or Vince Lombardi demanding perfection and telling his players to “run it again.” You need to embrace your own style based on your personality and then analyze results and adapt. Given, a selfstarter with a charming wit and calming voice, did just that. He reminded staff of who they are. “Not frontline workers in the overcrowded emergency rooms. But hospitality professionals, welcoming go-getters whose goal is to deliver exceptional service and create experiences.” He found a way to keep them engaged and employed, with regular rah-rahs and rewards for their dedication. Sure, wearing a mask on an eight-hour shift in the Florida heat is not ideal, but “you must change your mindset,“ he would say. While most managers gave into boards and quit on capital projects, Given went full speed ahead. He knew the impor46
BOARDROOM | MARCH / APRIL 2021
tance of staying relevant to prospective members who have numerous choices in the competitive South Florida landscape. Then there was his communication. Over the last year, we’ve seen many of our club clients enhance their video communications and share their messages weekly to reassure staff and membership, while others have gone dark. As a content creator and crisis expert, I’ve never understood the latter. How can someone walk away when adversity stares them right in the face? Now is the time when real leaders shine. They step up and thrive in the moment. And that’s what Given did. His members never had to wonder. Staff had no doubts. Through his regular video updates — yes, videos not flyers — he saw his click-through rates hover around 72%. That is incredible engagement. Members could access anything they needed to know from their devices no matter where they were. No gossip, no falsehoods, no I didn’t know thats. In a crisis, it’s imperative to make decisions with speed over precision. Sure, information is incomplete, but it’s crucial to define priorities and communicate the most important ones. Empower colleagues to step up and lead with an overarching theme of embracing action despite the mistakes that may follow. Mistakes will happen but failure to act quickly is much worse. “Your normal play book of innovation and driving revenue must be adapted to handle the operational challenges and to deliver with reliability,” Given says. “Monitor your team’s performance, set benchmarks and update them monthly so success can be tangible.” Your members matter but your staff is the lifeline of the organization. Take care of them, be understanding, empathetic and kind. You’ve probably identified tomorrow’s leaders and found a few gems that you didn’t know existed, and I’m sure you uncovered a few duds as well. Crisis brings out the best and the worst but it’s much more than a simple social media post with a quote; it’s about action. So, what will you do? B R
EXECUTIVE SEARCH “It was certainly a great experience and an immense pleasure to work with the team at Golf Business Network to locate top candidates for our Director of Golf position. The GBN team are consummate professionals who were always accessible throughout the search process. My search for a new Director of Golf with GBN was an extremely positive experience, and I strongly recommend them to any club looking for professional assistance with locating talented candidates.” David Sheppard, General Manager/COO — Atlanta Athletic Club
Patrick Seither
PRESIDENT/CEO
Bob Ford PARTNER
Dave Ransom PARTNER
“From the beginning, GBN’s professionalism was remarkable. How they went out of their way to learn the culture of not only the membership but also the staff shows they truly understand the club industry. The result for us was an outstanding new hire. We couldn’t have done it without them.” Aidan Murphy, General Manager — Old Warson Country Club For more information, please contact Patrick Seither at 919-372-8220 GOLFBUSINESSNETWORK.COM
RYAN MCANDREW Ryan McAndrew is audit senior manager with RSM US LLP. He can be contacted via email: ryan.mcandrew@rsmus.com
FINANCE COMMITTEE
Non-traditional Data Can Give Club Budgeting an Edge Developing a private club’s operating budget can be a complicated affair. Myriad stakeholders, including management, the board of directors, internal subcommittees and other interested parties must reach consensus. Traditionally they’ve done this by relying on historical data. But there is now a clear opportunity to tap forward-looking data sources to give budgets a competitive edge. Private clubs across the country have slowly adopted their reliance on data analytics. The use of available inputs, like food and beverage covers and golf rounds, and traditional key performance indicators have become common influencers in budget meetings. Customer resource management platforms, known as CRM, are used to assist with membership and marketing and have provided a significant upgrade to archaic club systems. The ability to promote events, evaluate prospective members and connect their applications to geographic tracking and real-time feedback data has helped clubs monitor their performance and adjust staffing levels. While CRM tools have iteratively improved performance, predictive alternative data offers the ability to better target goals based on internal and external factors. So-called alt data is already widely embraced in the investment community as a means to predict changes in financial markets rather than react to them. In the postCOVID world, spending by buy-side investment companies on alternative data has accelerated to a projected $1.7 billion in 2020 versus $1.1 billion in 2019, according to YipitData, representing a considerable uptick from $232 million in 2016. Companies around the world have been drawn to the allure of alternative data — which ranges from commodities futures to weather patterns and public transportation use — due to the competitive advantage it offers when making strategic decisions. Businesses reluctant to embrace alternative data carry strategic risk that may affect the delivery of their mission, financial performance or reputation. MAKING THE CASE
Before alt data is integrated into an organization’s planning, buy-in must be obtained from its management and directors. 48
BOARDROOM | MARCH / APRIL 2021
But making the case at a private club shouldn’t be hard. Many external factors impact a club’s operations. The pandemic has shaken global supply chains which have trickled into cost analysis for general contractors and subcontractors, directly impacting clubs’ construction plans. Lumber futures, for instance, are down from an all-time high of $1,000 in September and are now up 120 percent since 2019. These costs are passed down to the consumer and can wreak havoc on long-term capital plans. So, what are the best use cases of alt data for private club budgeting? Membership offers many potential examples. One would call for cross-referencing prospective member profiling from the CRM data against population shifts revealed by the US Census. Additionally, Google Trends or Redfin migration data can be used to track the potential origin and destination of housing searches throughout the country. Analysis of these trends can be used to create marketing plans that effectively target potential members before they relocate to the area. Further, market confidence indices, such as the Consumer Confidence Index, measure the degree of optimism about the US economy that consumers demonstrate through their saving and spending habits, particularly useful for clubs, whose members typically have high levels of disposable income. The use of geo-tracking via GPS within proprietary club applications can extend well beyond customer service. Mobility data, combined with artificial intelligence, can model predictive behavior from club members, allowing club management to glean recommendations for amenities and reservations. Google, Facebook and Amazon have used predictive analytics for more than a decade with great success, but the club world is just entering the introductory stage. Alternative data sources are plentiful, and clubs should make an investment of time and money to deploy them for more successful strategic planning. B R
ClubTec Has Led Clubs With Unsurpassed Service And Customer Satisfaction For Over 40 Years And Today We Are Leading Clubs Through These Unique Times
Brunch is served outside on the patio Saturday & Sunday! Or if you prefer carryout, Chef Edmonds can package everything for carryout or curbside pick-up. Place your order on the website. We look forward to seeing you soon! Stay Safe!
ay is
e tod
tim r tee
.
0 AM
11:3
will omes fours no ncing, se arrive time rt l dista lea r sta socia utes. P u yo in min fore ainta To m every 12 inutes be t go ou than 15 m e starter. more port to th day! re to d n s a ing u r join ks fo Than n you
hnso
Mr. Jo
🏌
It’s W in main e Wedn esd wine list a ay! All b re 50 o The % off ttles on pa . the favori tio is op en! E te w in n the p orte e outside joy a bott coch le of dinne ere a or pick y r-O o ur it nd ta rder ke it up in onlin ho e or call th me for e clu b.
🍷
ClubTec and WebTec have the technology tools clubs need to prepare for the new normal. Change happens and we’ve seen it all!
www.clubtec.com • www.clubtec.com/webtec • 800.800.5506
ED DOYLE Ed Doyle is president of RealFood Hospitality Strategy and Design, a Troon company, and can be reached at eddoyle@rfhsd.com or (617)876-2100
F&B COMMITTEE
Fences and Filters Mapping the F&B Experience Imagine you are a member dining at your club. How would you rate the overall experience? How would you say it compares to what’s being offered at restaurants in the surrounding area, even in the current environment? Even if dining is your club’s most popular amenity, it’s likely that the member experience has the potential to be even more impactful and memorable. The COVID-19 environment has provided a broad new horizon for clubs to create and provide unique dining experiences. Members are heading to their clubs at record rates to play more golf, attracted by the idea of heightened safety, security and controlled environments that private clubs offer. If your member satisfaction score for dining isn’t what you know it can be, you might consider building a fence and filter system. Fences to navigate Human beings are prone to curiosity and the desire for exploration. And we’ve learned that adventure often yields new discoveries, sources of inspiration, and even answers. Fences are, by definition, barriers or structures enclosing an area to mark a boundary, control access or prevent escape. They define and protect. As we think about creating food and beverage experiences at our clubs, unless we articulate where our brand starts and stops, we can journey too far and find ourselves wandering off the path into a hazardous place, especially when outside factors come into play. Rather, if we take the time to do a bit of systematic searching, and then properly constrain the landscape of our possibilities, we can establish and protect the playing field. The process of mapping our member and guest dining experiences is much like building a fence. This practice articulates your desired member experience across all brand touchpoints. Your food and beverage offering is a primary indicator of the overarching club brand. We all know how much it matters. Filters to evaluate Filters are, by definition, porous devices for removing impurities. They process and assess. The journey map is the fence, and it acts as a filter for operational decisions. Fences and filters are the keys to getting the most out of your club’s food and beverage operation. Unless we define the fences and use the filters, we can’t allow people to range on their own. Building a fence empowers 50
BOARDROOM | MARCH / APRIL 2021
people; it gives your team a level of autonomy and accountability that allows them to reach and grow, to run free within the set parameters. The journey map can also be used as a management tool, giving club leadership something to measure against. Some may feel like it’s limiting, but actually, it’s liberating; a fence is a shared understanding. Let’s take a chef, for example. As managers and operators, we don’t want to constrain a culinarian’s creativity, but we want to define the area he or she can work within to support the ultimate desired brand experience. We want to provide clarity so everyone knows where the fence begins and ends. Defining this area allows for performance and delivery at the highest level instead of the marginal success that comes with the proverbial “everything to everyone” mindset. THE X FACTOR
The most significant impact on the outcome of your food and beverage operation is the experience. Eighty percent of consumers consider their experience with a company to be as important as its products or services, according to research. That means that user experience (UX), customer experience (CX), member experience (MX) — ”the X factor” — can significantly affect the perception, usage and revenue generation of an operation. The overall goal of the journey mapping process is to identify high-level aspirational goals and granular elements that will differentiate your member experience. The journey map defines, in a visual model, the experience objectives and key brand attributes for each moment within the member journey — before, during, and after a visit. It addresses the physical environment, guest flow, tabletop decisions, service style, menu offerings, and language standards to be used and avoided. With a journey map, everyone is using the same compass. It is a tool that aligns everyone in your organization — from the board and management team to the service and kitchen staff. The member journey map still affords you the ability to create richness and explore every possible way to express your brand, but if we don’t take the time to establish an experience framework, everything is a negotiation. Plot the map. And be sure to constantly revisit it with your team. Maintain the fences, repair them, even open the gate sometimes to let new ideas in and old ones out. BR
Two Nationally Recognized Club Attorneys Join Forces at NELSON MULLINS! ROBYN NORDIN STOWELL has joined MICHELLE F. TANZER in the firm’s Global Club & Branded Residences Group. The two have combined experience of more than 55 years in the club, residential, and hospitality industries.
MICHELLE F. TANZER
ROBYN NORDIN STOWELL
Michelle is chair of Nelson Mullins’ Global Club and Branded Residences Group and co-chair of the Hospitality, Tourism, and Leisure Team. Michelle advises her club, community association, developer, and hotel operator clients with projects in the U.S. as well as the Caribbean, the Bahamas, Latin America, and Asia. Her primary focus is negotiating, structuring, and amending the governance documents for private clubs of all types and sizes, as well as the merger, licensing, marketing, and management documents necessary for residential and resort communities, mixed-use projects, and condominium, timeshare, and residence club developments. She has been recognized by the Daily Business Review as a Florida Trailblazer (2020) for her innovative work in the club industry. She also received BoardRoom Magazine’s Excellence in Achievement Awards, Lawyer of the Year in 2020.
Robyn works closely with private clubs, golf resorts, developers, lenders, and member groups on a wide variety of matters and transactions, assisting clients with club turnovers; equity conversions; the purchase, sale, and financing of golf and resort assets; structuring member-financed renovation and expansion programs; contract negotiations; and the sale of amenities valued in the tens of millions of dollars. She regularly counsels clubs on governance and membership issues, including member discipline, and advises on legal issues including corporate governance, restructuring of club operations and membership offerings, cybersecurity and data privacy, best practices in operations, and settlements involving real estate, golf course, and club litigation. Robyn received BoardRoom Magazine’s Excellence in Achievement Award, Lawyer of the Year in 2019.
Nelson Mullins Riley & Scarborough LLP Attorneys and Counselors at Law
Lynn Financial Center | 1905 NW Corporate Blvd Suite 310 | Boca Raton, FL 33431 561.883.8955 | nelsonmullins.com
BONNIE J. KNUTSON
MEMBERSHIP MUSINGS
Bonnie J. Knutson, PhD, 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 email: drbonnie@msu.edu
My Latin Teacher Would Be Proud of Me The word diversity is thought to have merged into the English language When I tell people that I took Latin all through high school, they look at me with a puzzled expression. during the 1300s. Like many words or terms, its meaning has changed over time and organizations tend to define it in their own terms – in its cultural Why would anyone study a dead language? milieu. Today, there are probably as many variations as there are people After all these years, I can say that the time I and organizations. spent building off the first Latin sentence I ever One of the simplest and most comprehensive descriptions that I have learned (Americae pulchrum est = America is beauread comes from my own Michigan State University: “Diversity represents tiful) has reinforced the value of those countless our varied collective and individual identities and differences.” But then I hours in class – not to mention the homework – also remember reading somewhere that diversity has become a code word with Mr. Kennedy, my Latin teacher. Why? for non-white or non-male. Or to paraphrase an 1878 quote from author Latin is a logical and organized language that Margaret Wolfe Hungerford, “Diversity is in the eye of the beholder.” hones your critical-thinking and problem-solving abilities. But aside from the mental alertness THE CHALLENGE aspect, for me, the biggest reason to study Latin It is true that board members are the stewards of their clubs and must, is because about two-thirds of English words are therefore, be at the forefront of any shift in their clubs’ DEI culture. But derived from Latin. Deconstructing a word into its this charge begs a deeper issue – the diversity of the club’s membership. In true or root meaning can give you a fresh perspecgeneral, a club’s board reflects the composition of its membership and its tive on an issue. membership tends to reflect the composition of its community. So, if the It is no secret that, like society itself, clubs are in a community is not diverse, what does that mean for the membership, and in cultural shift – some would say upheaval – that had turn, the board as stewards of their club? Herein lies the challenge. its genesis in the early 1980s, when Lewis Brown In thinking about this conundrum, memories of my nonno (Italian Griggs coined the words diversity and inclusion. grandfather) popped into my mind because he belonged to a private Forty years later, these words have been encapsuclub. It was officially called the South Side Civic Club, but it was really lated in the acronym DEI (diversity, equity and incluthe Italian Social Club. It was in the heart of a community of Italian immision) and often shortened to the term diversity. grants. Members’ last names ended in vowels, there was a lot of wine and CULTURAL SHIFT But what does this cultural shift mean in the club industry, which by definition is built on privacy and exclusivity, and because people tend to want to be with others like themselves? This is displayed in “the cultural homogeneity of our society.” So, what does diversity mean for clubs in 2021 and beyond? Here is where my countless hours of studying Latin help me think about this question. When I began writing this article, I Googled “definition of diversity” for fun. (Who did we ask “BG” – before Google?) I got about 1,220,000,000 results. Yikes. With that many definitions or interpretations, it is no wonder we are all grappling with DEI. So, to the Latin root I went and discovered that, at its core, diversity means “facing or turned both ways.” This gave me a different perspective, i.e., the need or ability to see, understand, and value ways other than my own. 52
BOARDROOM | MARCH / APRIL 2021
pasta on the menu, and, of course, everyone played bocce ball and cribbage. It was, what every club wants to be – the members’ third place. Nonno’s club was not diverse, at least not as we define diversity today. Yet it was diverse in two important ways. First, the table (the club’s name for its board of directors) reflected its membership, which in turn mirrored its community. Second, members of the table had what we now call cognitive diversity and reflected a variety of backgrounds, professions, skills, and perspectives on issues that were pertinent to the club’s success. In other words, they went back to the Latin roots of facing or turning both ways. So perhaps our clubs should think about diversity not just in terms of race, ethnicity, or gender but also in terms of cognitivity to bring varied backgrounds, experiences, and perspectives to the context of the club’s culture and future. Such members will also be more likely to ask challenging questions of their boards and club management, which is always good. Make no mistake about it, the diversity conversation must and will take place in every club just as it is in every business, non-profit, and government entity. Not only is it the culturally right thing to do, but it is increasingly becoming the mandatory thing to do – especially at the board level. SEE MEMBERSHIP MUSINGS | 103
100% RECYCLABLE RENEWABLE SUSTAINABLE SAVES ENERGY AND RESOURCES U.S. NATURAL SPRING WATER This carton reduces the use of plastic and plastic pollution, making it a green and eco friendly alternative. Show your members you are serious about their health and the planet’s health. Use your own design for a private label WaterBox!
YOU ARE WATER. WATERBOX IS YOU. We are all mostly made of water. Water fuels us. It sustains us. With every carton you are helping sustain the planet.
Be a part of the countless others that have chosen to help the environment.
GREAT WATER. GREAT PACKAGE. | www.waterboxllc.com | 877-464-3493
JIM WEST
EXECUTIVE COMMITTEE
Jim West, PGA is a career consultant. He can be reached at (561) 446-4928 or via email: jwest@pgahq.com
Building and Managing a High-Performance Team A high-performance team is an essential element of success at every type of facility. It is critical that all team members row in the right direction and have a clear understanding of their role, what success looks like for their facility and that their efforts support the club’s mission and vision. Obviously the first step in building a high-performance team is selecting the right individuals. What qualities are important? How does your current staff fit into this plan? The term “servant’s heart” is arguably overused; however, it is important that members of a high-performance team genuinely enjoy serving others. Another essential quality of high-performance team members is a culture of continuous improvement. Team members must be wired to constantly look for areas to improve – regardless of previous successes. Continuous improvement must also be an innate personal attribute. If you find that members of your current team don’t meet your requirements, it is in the best interest of everyone’s long-term success that you help them find a more suitable role where they can be more successful – either within your organization or elsewhere. Diversity and inclusion are also critical to the success of high-performance teams. If everyone thinks and looks the same, performance is hindered. Diversity reduces groupthink and promotes a fresh perspective and better, more objective problem-solving. Further, workplace diversity and inclusion lead to improved innovation – which is critical for an effective culture of continuous improvement. Once you have assembled the members of your team, it is vital that everyone understands their role in achieving success and how they can help one another in the 54
BOARDROOM | MARCH / APRIL 2021
process. Invite an open dialogue with team members to discuss and agree on what defines success for their position. The aphorism “a rising tide lifts all boats” applies when team members lift each other up to achieve a common objective. Throughout the year, you and your team members need to be able to measure success. This is accomplished by establishing specific goals and objectives that align with your facility’s mission and vision. All team members need to have a clear understanding of what success looks like for them, and well-defined goals and objectives that support this initiative. In many cases, team members share goals and objectives and work together to achieve success. However, you choose to assign responsibilities, the key is to make certain that your team members know exactly what success looks like for their role in the organization. Throughout the year, have team members provide quick, periodic updates to management on their progress. This could be as simple as an update in a staff meeting but could also include updating club boards or committees. These quick updates allow team members and management to recognize and celebrate success. It is important to recognize each team member’s performance throughout the year, and not just during a formal update or performance evaluation. Words of encouragement will pay big dividends, keeping the wind in your team’s sails. Equally important in managing a high-performance team is quickly recognizing when a team member’s performance is falling short. Sometimes this is due to a misunderstanding or perhaps a personal issue. Regardless, it is important for managers at every level in your organization to quickly recognize and address issues as they arise – positive and potentially negative. In today’s ever-changing world of club operations, it is entirely possible and even likely that the picture of success will shift – take COVID, for example. When the definition of success changes, it is important for your team to quickly pivot and make changes accordingly. The key to facilitating effective change is an open dialogue with your team. In a quickly changing landscape, the input of your team is vital to making the best decisions for your facility. For an organization to achieve long-term success, it must truly embrace a culture of continuous improvement at every level, including continuous growth and development of team members. Ongoing improvement and significant positive change in an operation is most often the sum of many small changes. Therefore, every person in your organization from the general manager to part-time staff should adopt an attitude of continuous improvement. Team members must feel comfortable bringing ideas for improvement forward to management and management should give careful consideration of new ideas. B R
Golf & Country Club Text Marketing Made Easy. 98% Open Rate on Messages Keep Members Updated in Minutes Increase Revenue, Member Retention, and Event Attendance
“I am thrilled with MemberText’s messaging service and our members love it!” - Lisa M. Martin, GM, Yakima Country Club
Text “CMAA” to 71441 to see how it works. Trusted By
www.MemberText.net
P: (240) 630-4653 | Justin@membertext.net
BoardRoom magazine Recognizes the Private Club Presidents of the Year By Ellery Platts Now in its 13th year, BoardRoom magazine annually recognizes the world’s top private club presidents, captains and chairs as Private Club Presidents of the Year, for their outstanding work, their understanding of the industry, and role and responsibilities of the club’s board of directors. In this continuing series, BoardRoom introduces five of the top 28 presidents for 2020. The Distinguished Club President was featured in the January/ February issue.
effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work. Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan.
Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world.
A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members.
These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working,
Congratulations to these outstanding private club board presidents. See pages 58 & 59. To view all the Distinguished Club Presidents from the past 12 years, please visit: boardroommagazine.com/board-presidents
TOP PRIVATE CLUB PRESIDENTS SPONSORS
WILLIAM CHOATE | PRESIDENT, CHARLOTTE COUNTRY CLUB | CHARLOTTE, NC
WILLIAM CHOATE, PRESIDENT
PRISCILLA EICH, GM
At the start of the coronavirus pandemic, most clubs found themselves between a rock and a hard place when it came to deciding what to do next — though not the Charlotte Country Club. William Choate sprung into action with no hesitation, demonstrating the true definition of a leader when he, along with the board, made the strategic decision to pause their member assessment. This assessment was begun to help fund several capital projects. Because of this decision, the club 56
BOARDROOM | MARCH / APRIL 2021
saved over one million dollars by rebidding certain elements within various projects. As well, the membership continued to use club facilities that would have been otherwise closed for construction, contributing to a well-needed sanctuary in a time of instability. Not only was the club a form of sanctuary during the pandemic, but member engagement also remained noticeably high, and the golf course itself witnessed record numbers. Under Choate’s leadership, member confidence in the board is higher than ever before. He has also led the board at the Charlotte Country Club as they move toward the next step in their campus plan, which will ideally mold the club’s future for generations to come. Choate received a bachelor’s degree from UNC Chapel Hill, focusing on political science. He transferred this knowledge to a career in the insurance brokerage business before starting a small aerospace firm, NLA Diagnostics, LLC. Not only is Choate a man dedicated to his duties, but he is also a devoted family man to his wife of 40 years, Marcy, and their two sons, one with a son of his own. General manager Priscilla Eich says Choate’s presidency truly embodies the concept of collaborative leadership. “He is extremely supportive and protective of staff and is always asking how he can be of help or be of service to our team members.” B R
“As a private club, our members and guests expect the same caliber of Five-Star service that Forbes Travel Guide offers. Forbes Travel Guide worked with our leadership team to create custom standards, tailored training, and quality assessments which have been implemented throughout the club. We value our partnership with Forbes Travel Guide and look forward to continuing to raise the bar at The Union League of Philadelphia.” Jeffrey P. McFadden
Chief Executive Officer/General Manager The Union League of Philadelphia
IN-PERSON TRAINING TAILORED TO YOUR CLUB
ONLINE SERVICE TRAINING
SERVICE EVALUATIONS AND DETAILED REPORTS
For more information please contact
David Tyson
Vice President Private Clubs, Global Partner Services
dtyson@forbestravelguide.com partner.forbestravelguide.com
CUSTOM CLUB STANDARDS DEVELOPMENT
BRUCE BEHRENS | PRESIDENT, ORCHID ISLAND GOLF & BEACH CLUB | VERO BEACH, FL cial experience has helped him transition beautifully to the role and responsibility of club president. Though his resume speaks for itself, his time on the board has been nothing short of exemplary. His most notable contribution to the club, which by no coincidence landed him among the top club presidents for the past year, has been his ability to negotiate a seven-acre land purchase adjacent to the club. This expansion is critical for the future growth of Orchid Island, and the investment will allow for much-needed, new amenities. Specifically, Behrens and the rest of the executive committee oversaw negotiations with the seller, while the board of governors continually communicated, clearly and consistently, with the membership. As a result of the board’s diligence, BRUCE BEHRENS, PRESIDENT J. ROBERT TENCH, GM the membership voted 88 percent in favor of buying the land. Aside from his negotiation success, Behrens took impressive steps to keep the club The Orchid Island Golf and Beach Club has been thriving under the unpredictable and unprecedented time of COVID-19. Early on, he lucky to have Bruce E. Behrens represent the memrecognized the need for a shift in direction, switching the focus from the member expebership as the president of the board of governors for the last two years. Behrens took on this position rience to member health and safety. Some of the programs he created include a food after serving five years on the board as chair of the market and a takeout/delivery system. Beyond food-related services, the club created an online experience, offering virtual bridge, an online pro shop, and Zoom fitness classes. finance, tennis, and fitness committee. Behrens has continuously demonstrated the kind of leader he is at Orchid Island. Not only has he accepted this position with enthusiasm and open arms, but he has also thrived J. Robert Tench, the general manager at the club, says, “Mr. Behrens possesses a calm and thoughtful approach in dealing with all club issues.” He is a mentor and under his new title. (A feat that should come as excellent communicator who excels at member relations. no surprise to anyone who knows him and his 44 As well, he repeatedly demonstrates he truly has the club’s best interests in mind, years in investment management before retiring in 2012). The expertise Behrens brings from his finan- from the man who has created a happy membership and a fiscally sound club. BR
SUSAN BRENNER | PRESIDENT, WYCLIFFE GOLF & COUNTRY CLUB | WELLINGTON, FL
SUSAN BRENNER, PRESIDENT
ROBERT MARTIN , GM
Susan Brenner is everything you would assume, seeing her sit at the front of the board as president at the Wycliffe Golf and Country Club. For 26 years, she was a leader at Bright Horizons Family Solutions, where she helped operations run seamlessly as the senior vice president for the U.S. branch and was a prominent member of the executive team that led the mission-driven organization. In two short years, she has already made a large impact on both the membership and her management team as an instrumental part of the last two strategic plans. Wycliffe has seen record highs in member satisfaction scores since Brenner took on 58
BOARDROOM | MARCH / APRIL 2021
her role as president and continues to see the board’s performance scores improve exponentially, while also strengthening operations. Brenner’s governance standards have allowed management to succeed in their roles. Aside from growing overall satisfaction, Brenner has led several initiatives. As vice president, she helped with Wycliffe’s equity restructure model in December of 2017 and the joining fee approach that built necessary capital to fund the club’s longrange plan. Not long after, at the start of 2019, Brenner was critical to merging the club into a bundled community. Brenner led an $18.2-million renovation on time and on budget. All done masterfully, with no disruption to members. While leading these projects, she also helped with the club’s rebranding. Fresh logos. Restaurant names. Positioning statements. Even more notable is the five percent growth in food and beverage revenue and member engagement throughout the last phase of the upgrades. Her resume is nothing short of impressive. General manager Robert Martin says Brenner’s poise and ability to communicate in person and her exceptional writing abilities were needed this past year. “Her satisfaction rating is the highest of any past president, while still pushing key strategic initiatives forward was no small task,” says Martin. “She has impeccable follow-up with membership issues.” Martin added that her style is one of a visionary leader who has a way of relating to not only the staff, but every member she encounters. With Brenner’s strong corporate background at Bright Horizons and her prior board experiences, she is well-positioned to thrive during her time in the Wycliffe boardroom and to combat any blurred lines in operational governance. BR
MARTIN P. BRUNK | PRESIDENT, BALTIMORE COUNTRY CLUB | BALTIMORE, MD
MARTIN P. BRUNK, PRESIDENT
KENT JOHNSON, GM
With 40 years of experience in business and accounting, it’s no wonder Martin P. Brunk has been able to thrive as president of the Baltimore Country Club. Before taking on the presidency, Brunk was the managing partner of the fifth largest audit, tax and consulting firm in the United States. His knowledge translated well and could be seen clearly as he led during a historic moment for the club — the official membership approval of the surplus land sale at the Roland Park Campus.
Baltimore’s general manager, Kent Johnson, says without Brunk’s transparency and methodology, the outcome wouldn’t have been the same. “This process was methodical and took place over several months to ensure the membership was involved and informed along the journey,” says Johnson. Because of Brunk’s leadership not only did the vote pass, it passed with an overwhelming majority. The Baltimore Country Club is lucky to have an enthusiastic president who stays actively engaged in his duties. His involvement in club life and community has been a sign of dedication and a source of comfort for the membership. Johnson believes Brunk’s genuine love for the club will set the tone for better leaders to follow in his footsteps. “You will never see Brunk wearing another club’s logo when he is at BCC as his love and passion for the club is always on his sleeve.” Along with his accomplishments surrounding the land surplus, Brunk helped create and execute short-term goals for the club while working with the board to develop long-term and strategic goals. On top of this, he simultaneously implemented a capital budget formula, financial forecasting and data-driven financial analysis for all significant decisions for the years to come. Brunk is the human embodiment of the Baltimore Country Club’s traditions and values. He continually invests his time and energy into the club. As Johnson says, “He has made me a stronger general manager, the club a better place for all members and staff, all while empowering me to be the best version of myself while giving me the freedom to operate the club without interference.” BR
KEN CHRISTIAN | PRESIDENT, BERKSHIRE COUNTRY CLUB | READING, PA
KEN CHRISTIAN, PRESIDENT
PAUL BOVENZI, GM
COVID-19 has been a time of unified, global unrest. For private clubs everywhere, it is a continuous battle of deciding where to go next without knowing what’s to come. Though for some, these decisions have come easily. Ken Christian, who has held the presidency of the Berkshire Country Club since October of 2019, recognized that the best course of action was to first create a unified voice throughout the club. Secondly, the club took steps to reinvent its business model. Together with the board, Christian turned what could have been something catastrophic into a year of enhanced energy and pride,
resulting in the best member experience across the region. And all this happened during the transition to a new general manager, meaning Christian not only led the decision-making process surrounding the pandemic, he handled his regular duties and served as the GM search committee chair. For nearly three months, Christian stepped up and filled the general manager gap, remaining enthusiastic in both roles and continuously demonstrating his belief that the club is an extension of the members’ homes. During this trying time, he never failed to communicate his vision, keeping the membership involved to continue forward growth. After a mandated 74-day closure, Berkshire broke the club record for golf rounds played. Members truly embraced the new initiatives put forth — whether that be curbside family-style dining or an essential grocery pickup service. The club truly came together and member satisfaction was clearly noticed. Christian has remained a strong player in preparing the club for the lasting effects that come with the pandemic while ensuring there is a strong long-term plan in place. Not only does he thrive in the workplace, he always makes sure to set aside time with his loving and supportive family. When he can’t be found at the club or his FirstStates Financial Service Corporation office, you’ll find him surrounded by his wife, three wonderful children, and his grandchild — soon to be two. “We can deal with whatever is handed to us, as long as we work together,” he explained. B R
MARCH / APRIL 2021 | BOARDROOM
59
ANGELA HARTMANN Angela Hartmann, GCSAA director, marketing and communications. She can be reached via email: ahartmann@gcsaa.org
GREEN COMMITTEE
GCSAA Program Establishes Golf Course Best Management Practices in All 50 States Three years after launching an initiative to create golf course best management practices (BMPs) in all 50 states by the end of 2020, the Golf Course Superintendents Association of America (GCSAA) has announced the successful completion of the endeavor. As of Dec. 31, each of the 50 states has established state specific BMPs featuring agronomic practices that support environmental stewardship. “Our goal to develop BMP manuals across the nation in such a short time frame was ambitious, but we knew these documents were a must as we work proactively with legislators, regulators and communities to demonstrate how superintendents are dedicated environmental stewards,” GCSAA CEO Rhett Evans said. “This is truly a watershed moment for our members, the game of golf and the people and wildlife who benefit from the agronomic and environmental practices superintendents engage in every day.” While steering committees in each state composed primarily of GCSAA members led the efforts, they worked closely with others in the golf industry, university faculty and officials from various state agencies around the country to create the BMPs. To aid in their efforts, GCSAA created a planning guide and template tool to provide the blueprint for each of the state documents, which cover key areas such as water management, integrated pest management and pollinator protection.
60
BOARDROOM | MARCH / APRIL 2021
Funding for the planning guide and template tool was also supported by the United States Golf Association. In addition, GCSAA provided financial assistance for the state projects via BMP grants, which were funded in part by the PGA Tour through GCSAA’s philanthropic organization, the Environmental Institute for Golf. Others who supported the creation of the BMP manuals include the PGA of America, Jack Harrell Jr. and Herbert V. Kohler Jr. “We are extremely proud of the GCSAA members who gave of their time and talents to spearhead the effort, but it’s a testament to the collaborative nature of the golf industry and the widespread understanding that the benefits of our environmental practices go well beyond the golf course that so many individuals and organizations were involved,” Evans said. “We thank the many volunteers and supporters who helped make this vision a reality.” Before the launch of the initiative in 2017, seven states – Florida, Michigan, New York, Oregon, Pennsylvania, Virginia and Washington – already had comprehensive golf course BMPs. However, those states updated their documents using the resources provided by GCSAA. Now that the state BMPs have been established, the initiative moves on to the next phase with the creation of facility BMP manuals. Using the GCSAA planning guide, individual golf facilities can use their state guides to create a BMP manual for their course. Facility BMP manuals not only direct and document agronomic and environmental practices, but they provide an easy, detailed reference for golfers, lawmakers and community members to better understand the operations behind the maintenance of one of their local greenspaces. Although the superintendent will be the key person to create the facility BMP manual, it is crucial for facility decision makers to support the effort as it benefits the entire course. Sen. Angus King (I-ME), who contributed the forward to the Maine BMP manual, understands the value of the manuals for the citizens of his state. “Maine’s golf courses are gaining wide recognition as a valued recreational resource,” King said. “At the same time, our communities want to know that golf courses are correctly managing their water resources, including protecting valuable wetlands and employing good IPM and nutrient management methods. This manual provides extensive guidance.” To learn more about golf course best management practices and see all of the state BMP guides, visit gcsaa.org/bmp B R
NEWPORT S TA C K A B L E D I N I N G C H A I R
Sit down - Stand out
gasserchair.com Youngstown OH 44505
USA
800.323.2234
sales@gasserchair.com
DAVE DOHERTY
GREEN COMMITTEE
Dave Doherty is CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand- and soil-based greens. He can be reached at (913) 706-6635 or via email: daveistrc@hotmail.com
Testing Greens When They Are Healthy Is a Must Not so long ago most greens testing was done on stressed greens, because as an industry we’ve always been reactive instead of proactive when it comes to the turf care of our golf greens. We’d wait for the greens to stress before trying to find out where they were deficient and in what areas they were deficient — mostly on the chemical side of the equation. Back then I’d be asked if the physical properties of a green were causing the turf problems. Without knowing the physical properties before the turf began to stress, it was in many cases very hard to give an answer.
superintendents, general managers and other course officials were very productive. We worked out an aerification and venting program based on science and each course’s needs. In each instance we located clean outs and outfalls, enabling us to inject oxygen into the root zones. About three years before our current visit, we had performed physical property analysis on the greens at one of the courses. By having access to the earlier physical properties and comparing them to the current results, we were able to see the changes and make recommendations based entirely on science. The course superintendent, in complete agreement with the recommendations, started on a new program immediately, involving
About three years before our current visit, we had performed physical property analysis on the greens at one of the courses. By having access to the earlier physical properties and comparing them to the current results, we were able to see the changes and make recommendations based entirely on science. The course superintendent, in complete agreement with the recommendations, started on a new program immediately, involving more than just a change in the displacement of organic matter this coming year. If we had been able to quantify the physical properties when the greens were healthy, it would have been a much more useful answer when we tested the greens in a stressed condition, and we’d be much more comfortable with our answer. Now years later we’re starting to be proactive. Not so long ago two members of the International Sports Turf Research Center (ISTRC) staff and I visited the U.S. Gulf Coast area armed with two camera snakes and multiple probes with enlarged tips to locate drain tile clean outs and drains and to check the condition of drain tiles. Before our journey began each of the four courses, we were to visit submitted samples for ISTRC physical property testing. With the physical property reports in hand, the meetings with course 62
BOARDROOM | MARCH / APRIL 2021
more than just a change in the displacement of organic matter this coming year. It was a most gratifying trip because of the opportunity to work alongside the staff of the different courses and share our knowledge. We learned first-hand the issues faced every day by not only the grounds crew but also the challenges faced by management. By being proactive, by quantifying physical properties when our greens are healthy and doing well, we can do a much better job of identifying the changes in our greens when they are stressed, allowing us to address the situation in the most economical way, based on science. B R
Introd ucing a s e a m less a p p l ica t ion f o r your a p p l ica t ion
S t re a m l i n e yo u r c l ub ’s m ember ship appl icat ion and approval proc es s
L e a rn mo re a t: Me mb e rPro c e s s .c o m
SCOTT KROUT Scott Krout is Superstition Mountain Golf and Country Club director of agronomy. He can be reached via email: skrout@superstitionmtngc.com
GREEN COMMITTEE
Caring for Aging Turf Young grass is resilient, easier to mainWhen I started working at Superstition Mountain Golf and Country Club, there tain and can quickly overcome challenges was no club and no golf. that are potentially detrimental to older It was a level piece of land and I had the privilege of being a part of the turf. Like all living things, as grass ages it team that helped create what it is today – a luxury private golf club with becomes more of a challenge to keep it two spectacular Nicklaus-designed courses. Now, 23 years later, I find myhealthy. It’s more susceptible to disease, self maintaining the same turf installed all those years ago. insects and soil issues. Along with myself, several of my staff members have been with the Continuous monitoring and management club for 20+ years and between us, we have come to know this property Every golf course consists of microclilike the backs of our hands. We know exactly what has been done to the mates caused by variations in shade, wind turf over its lifetime, what’s worked and what hasn’t. My team’s historical exposure, elevation, slope and soil condiknowledge has been invaluable. tions. Some spots may need a little extra water or less fertilizer and we have to adjust our maintenance routines in these areas almost daily. While we like to keep the use of insecticides and fertilizer at a minimum, we sometimes have to get more aggressive with insecticides, fungicides and fertilizer as the aging turf demands more care to stay healthy. This is especially true for intensely maintained areas like the greens. Soil and irrigation As courses get older, the soil tends to compact, making it more difficult for water to penetrate the hard ground, which is not always an easy feat in Arizona to begin with. To thrive, grass needs to be able to develop strong roots, and it needs water to do that. With aging turf, we’ve had to increase the frequency of culture practices such as aerification, dethatching and top dressing to combat compaction and other soil issues. The irrigation system itself is as old as the turf and on a daily basis we are replacing or repairing components in the sprinkler heads and various other elements of the system. We also have to keep a close eye on areas that are becoming less efficient and find ways to adjust programSEE GREEN COMMITTEE | 102 64
BOARDROOM | MARCH / APRIL 2021
Real World Challenges. Proven Solutions.
As a division of Troon,® True Club Solutions is the only advisory services firm that draws upon decades of experience, currently serving 585+ locations around the globe. As an alternative to professional management, our advisory engagements benefit clients by tapping into our depth and breadth of expertise to focus on club-specific, short-term needs.
To learn more, contact us at 800.827.9775, or visit TrueClubSolutions.com.
T R U E C LU B S O LU T I O N S .C O M
|
8 8 8 . 8 2 7. 9 7 75
GREG PIESCHALA Greg Pieschala is president of BrightView Golf Course Maintenance. He can be reached via email: greg.pieschala@brightview.com
GREEN COMMITTEE
Do Your Course Conditions Give You A Competitive Advantage? Surveys show the number one determining factor of where golfers play is golf course conditions. High-quality golf course conditions give you a competitive advantage for attracting players. However, what determines if your course conditions are better than the competition? Go play your competitors’ courses. Check them out and look closely at their playing surfaces and the detail on the edges to gauge them. Infrastructure below ground is what allows superintendents to consistently provide great golf course conditions over time. Of course, you must fix critical items that are broken. Follow that by doing an inventory of all components measured against their life expectancy. Check out the ASGCA list at: https://asgca.org/wp-content/uploads/2019/09/asgca-life-cycle_-_final_2014_cropped.pdf.
So, let’s focus on how to look and play better than your competitions’ courses. First impressions are critical. Pay daily attention to the area around the clubhouse. Make sure the parking lot, pro shop, practice range, putting green, and first tee are cleaned up and in good repair. It is difficult to overcome a negative first look if there is trash laying around or something is broken. Pay special attention to entrance and exit areas. They should make a high-quality aesthetic statement. Golf courses are expected to be beautiful green playgrounds. While slow to achieve, the image that the course is consistently in good shape matters. A healthy and high-performing turfgrass playing surface begins with a solid agronomic plan designed to achieve attainable agronomic goals. A basic inventory of high-profile surfaces (greens, tees, and fairways) should be performed to iden-
We can’t have a discussion about conditions superior to your competitors without talking about the greens. If bunkers are the teeth of the smile, greens are the head of the body. It is where most shots are played, so it is logical greens get the most criticism. Green speeds should stimp above nine feet and all greens roll the same speed. Color should be consistent throughout each season. This does always mean green. Most of all, they must roll true or be smooth. Use a roller often. If you can be recognized as having the best greens around consistently, you are on your way to having the competitive advantage. Develop, fund, and implement a long-range plan to replace components in a timely manner. This process will underpin the ability to provide great conditions with proper infrastructure for the long term. However, most golfers don’t know or care about what is under the ground. They just want good playing conditions, especially on the greens. They want to spend their time and money at a place that looks good and plays fairly. 66
BOARDROOM | MARCH / APRIL 2021
tify any limiting agronomic factors, such as shade, poor drainage, irrigation and soil nutrient deficiencies. Providing the turf with the basic requirements for plant growth and development is a critical step in producing a quality golf course product. Just as important is that the golf course consistently presents itself without faults. Eliminate and permanently remove them. Weeds, dead/dying playing turfgrass, ➤
broken golf course accessories, messy features, especially bunkers, standing water, etc., create a bad image. Each playing surface has its own look and playability and needs a different method of maintenance. Stuff happens. Keep an eye out for it and fix it immediately. Detail, detail, detail. Defined edges between turf, bunkers, cart paths, plant beds, and water edges present a compelling sharpness that shows the superintendent is paying attention. Doing hand work with edgers, weed eaters and shovels makes a big difference in presentation. It is a professional look that golfers appreciate and makes them feel they are in a special place. Bunkers may be the most conspicuous individual component of a golf course. Simply raking them regularly is not enough to present a strong feature. Edge the bunkers, ensure the consistency of the sand, relieve standing water and show a minimum four-inch lip. It defines the bunker edge nicely and highlights the feature in general. Poorly maintained bunkers are one of the quickest giveaways that the course is not well-maintained. Bunkers are like the teeth in a smile: brighten them. Golf courses generally have large-scale views. They can get washed out visually with so much green, especially in flat terrain. Look for ways to add contrast. Stripe fairways, increase the difference in height of cut between fairway and rough, mow square tee boxes, and let rough grass go dormant. A nice detail is to make a straight fairway cut line heading toward the outside edge of bunkers then arc around inside to return to a straight line past the bunker. It creates the image that the feature is jutting out into the fairway. Contrast creates interest, which creates fun. Another fun detail is to provide short cuts around greens where a ball will roll down a slope away from or toward the green. The ball rolling is dynamic, plus when it comes to rest in short grass, the golfer has options of how to play the next shot: putt, pitch, or flop versus one rough escape-type shot. Further, if you cut grass short on mounds or hills above the putting surface, the ball can release toward the center of the green. Fun stuff. We can’t have a discussion about conditions superior to your competitors without talking about the greens. If bunkers are the teeth of the smile, greens are the head of the body. It is where most shots are played, so it is logical greens get the most criticism.
68
BOARDROOM | MARCH / APRIL 2021
Green speeds should stimp above nine feet and all greens roll the same speed. Color should be consistent throughout each season. This does always mean green. Most of all, they must roll true or be smooth. Use a roller often. If you can be recognized as having the best greens around consistently, you are on your way to having the competitive advantage. Our experts will tell you that moisture management and organic matter management in putting greens are the keys to success in maintaining quality putting greens. Monitor both constantly by precisely measuring those quantities. Organic matter retains soil moisture and therefore too little or too much can be the difference between overly dry or overly wet putting green surfaces. Two important tools and measurements can assist in guiding moisture and organic matter management: • Soil moisture meter (TDR meters or POGO) provides real-time moisture content of putting greens to help maintain proper soil moisture percentages, especially during summer months. • Annual soil physical analysis quantifies organic matter content in the root zone profile. Think of it as a cholesterol count for your putting greens. Finally, what is your golf course’s best asset? Trees, bunker style, greens quality, resistance to scoring, or beauty? Determine what that is. It won’t take long and never compromise that asset. In fact, enhance it. That asset gives your course its identity. No other course has this, which differentiates you from your competition. So, along with the critical attention you need to give to the infrastructure for long-term, high-quality maintenance, work on these items every day: • Keep it looking good around the clubhouse area: the parking lot, practice range tee, practice area, first and 10th tees, ninth and 18th greens, all green space. • Consistently keep playing surfaces free of weeds, uniform color, smooth. Eliminate flaws. • Define edges between playing surfaces. Edge cart paths, mulch plant beds, lip bunker edges, Flymo water edges. • Draw attention to the features. Edge, rake, and clean bunkers, detail fairway cut, clean lakes, keep trees healthy. • Create contrast in heights of cut, color, fairway lines, plant bed edges. • Add detail with a focus on creating interest in playability and aesthetics. • Make your greens great all the time. • Enhance the golf course’s primary asset. Would you like to learn more about how BrightView and our team of experts can ensure your course conditions give you a competitive advantage? Contact us today and we’d be happy to discuss how we can help you get the most out of your equipment plan. B R
“Can we fund capital projects and reserves easily?”
OVERHEARD IN YOUR BOARDROOM? YOU’RE NOT ALONE.
“Why would I want to pay for the new pool project? I haven’t been there in years…” “How do we keep up with the other clubs in town?” “How will our members respond to this dues increase or special assessment? How many might leave over this?” “We’re a smart group of rotating, part-time volunteers…are we the right people to be running this club?” “Should we go back to our bank, or test our members’ appetite to pay?” “What is our plan to keep up with attrition and to actually grow our membership?” “We should’ve gained a lot more members from our last renovation...what happened?” “What capital investments are needed in the coming years, and how will we pay for it?” “We’re having trouble finding people to run for the Board; our members just want to enjoy their club and not spend time in long Board meetings worrying about budgets, hamburger prices and new agronomic practices.”
ConcertGolf
Partners
www.concertgolfpartners.com
“Our last member-vote was contentious, should we risk bringing this up to our members?” “Is our total member bill (dues + assessments) overpriced?” “Why can’t we seem to attract younger families to join?”
BILLY KNIGHT Billy Knight is ClubCorp’s Vice President of Corporate Development. He can be reached at billy.knight@clubcorp.com or (678) 859-5497.
CASE STUDY
Private Clubs Will Face a New Slate of Questions in a Post-COVID Environment A little over 13 months ago, private club board a year ago. However, it is very clear that a new set of challenges is beginning members were staring down a public health to emerge, placing a premium on thoughtful, strategic leadership. Some of the most common questions I hear from board members today crisis unlike anything we’d ever seen in the include: golf industry. Banquet, dining and private event revenues still aren’t back to pre-COVID COVID-19 and the associated state and levels, but we anticipate they will ultimately return. When is the best time to local lockdowns implemented to slow the fully staff the club again? spread of the virus appeared poised to We’ve seen significant growth in membership and rounds over the past threaten the sustainability and ultimate year. How do we balance growth without sacrificing the membership exsurvival of many private clubs around the perience and compromising golf course conditions? country. For now, interest rates are still historically low. Is now the right time to Then, something unexpected happened. take on additional debt to fund capital improvements? A rapid shift in how our society spends Assuming we do take on debt to fund capex, how do we deploy that capital its time and discretionary dollar drove in a way that will have the most impact on the membership? Should we insignificant traffic toward club activities, vest in the golf course because golf demand is up? Or should we invest in particularly golf. Widespread adaptation our clubhouse to provide a better F&B experience? of work-from-home policies afforded inWe’re starting to see tremendous growth from junior / young executive dividuals more flexibility with respect to members who are paying a lower dues rate. How do we balance access to how their workdays were structured. Rethe golf course between full dues paying members and younger members strictions on indoor gatherings drove peoto keep both segments happy? ple toward outdoor activities where social To some club leaders these may sound like good problems to have, and to distance could easily be maintained. Rean extent that’s true when considering the initial outlook many clubs were luctance to travel, particularly via airplane, facing in March/April of 2020. Regardless, it’s critical that clubs put a plan kept families local and pursuing leisure acin place to address these issues today, particularly as we move towards an tivities in close proximity to the home. The environment where demand for golf begins to return to historical norms. combination of these factors led to a very The accelerated roll-out of the vaccine, declining case counts and a loossuccessful year for private clubs in many ening of COVID restrictions in many areas are hinting at a “return to norareas of the country. mal,” or at least a transition to the “new normal,” at some point in 2021. In By mid-summer of 2020, it became clear recent weeks, many companies have established target dates in the summer that the doomsday scenario would be for their employees to return to the office. Leisure travel, fueled by a glut of avoided. As demand for golf and memberpent-up demand from the past 13 months, is beginning to return at a rapid ship accelerated through the pandemic, rate. Competitive outlets for consumers to spend discretionary income, many clubs never had to reckon with the such as concerts and sporting events, appear poised to come back online at very serious questions that appeared to be nearly full capacity this fall. The combination of these factors could begin to imminent just a few short months earlier. present challenges for private clubs in the back half of 2021. Fast forward to the spring / summer of Positioning our ClubLife Management client clubs for long-term success 2021, and a new set of major questions are in a post-COVID environment is our top priority as we head into what prombeginning to emerge at many private clubs ises to be an interesting second half of 2021. Leveraging many of the same as we inch our way towards a post-COVID tools and resources used across ClubCorp’s portfolio of over 200 owned environment. Thankfully, the conversations clubs, as well as the institutional knowledge developed over 60+ years in the I’m having today with club leaders are takprivate club space, our clients are moving confidently into the future. For ing on a much different tenor and tone than more information on how we’re working side-by-side with our partner clubs, the conversations we were having this time visit clublifemanagement.com. B R 70
BOARDROOM | MARCH / APRIL 2021
PGA National Members Club Palm Beach Gardens, FL
YOUR VISION. OUR MISSION. Club Management & Consulting Services Powered by ClubCorp®
Drawing on over 60 years of experience and institutional knowledge from over 200 private Santa Rosa Golf & Beach Club Santa Rosa Beach, FL
clubs nationwide, ClubLife Management is uniquely positioned to navigate the challenges facing tomorrow’s private club, today. We keep our clients ahead of the curve – delivering unrivaled member experiences that drive member retention and satisfaction, unparalleled buying power, and an industry-leading approach to digital marketing.
Engineers Country Club Roslyn, NY
Management &
Consulting Services Visit clublifemanagement.com to learn more. Powered by ClubCorp®
Judd Brown Recognized With BoardRoom magazine Lifetime Achievement Award By Peter Cafaro Consider signature architectural and interior-design achievements that speak for themselves. Baltusrol. Mountain Ridge. Canoe Brook. Braeburn. Ridgewood. Iconic country clubs all. The re-imagining of these treasures in recent times for contemporary memberships has been the work of JBD Design/JGA Architecture and the man at its helm, Judd Brown, a creative force in the country-club space for nearly 40 years. And Brown is indeed a worthy recipient of BoardRoom magazine’s Lifetime Achievement Award for 2020 for his outstanding contributions to the private club industry. SERENDIPITY?
Brown’s future began in 1981 with a focus on hospitality — restaurants, specifically. With a business background, including time as a busboy and as a waiter, it seemed like a natural fit. But fate ultimately altered that trajectory when his then-employer decided to buy and renovate a country club in Rhode Island. Brown enlisted Steve McMahon on the project, and the two combined their talents to form JBD in 1983. Today, McMahon is the firm’s executive vice president. In the firm’s early days, restaurants represented the bulk of its business. And business was very good. But it took the advice of JBD’s first marketing pro to turn Brown and McMahon’s attention to the business of country clubs. As Brown recalls, “He said, ‘You know, I could make you a country club firm,’ and I remember Steve and I going, ‘What’s that?’” They soon found out. Presenting itself as a “country club firm” at the Boston Restaurant Show, JBD got its message across. And club projects began to roll in. To this day,
72
BOARDROOM | MARCH / APRIL 2021
Brown remains deeply grateful — and still somewhat mystified — about the way events unfolded. “I don’t think Steve, nor I set out to be a country-club firm, but a gathering sense of confidence buoyed us — and it happened.” All roads lead to Jersey. Eventually. Under Brown’s direction, the firm continued to burnish its reputation throughout New England in the 1990s. But it was about to break out — and into the epicenter of some of the nation’s grandest clubs. Success in Connecticut led to the master plan at Baltusrol. A connection in Maine brought JBD to Canoe Brook and the completion of one of its largest projects ever. “We took the building down to the first-floor deck, with a massive redo all in one shot. Suddenly, everyone in the marketplace became aware of us.” Ironically, it took recognition in the Garden State to significantly raise its visibility at home. “It’s like they say,” says Brown, ‘the prophet is never honored in his own land.’ We needed to go to NJ instead of RI and MA to be recognized truly as a leader.” HACKING WENDEHACK
Brown is justifiably proud of the work his firm has done to complement country clubs of seminal architect Clifford Charles Wendehack — four of them in all, with the most recent project at Ridgewood. The grand Tudor properties, home to great courses and PGA events, represent rare opportunities to introduce the past to the future. “They are nothing less than monuments of architecture in the club industry,” Brown says. “I think about the number of times that the interiors have changed and their relative impermanence against the permanence of the architecture through the same period. “A positive aspect of our firm is to be able to bring great architecture that is complementary to the roots of the building and restorative interiors that speak to the entire package, that when you see the building from the outside and experience it on the inside, there is no discord.” Brown maintains that it is a keynote of his firm to optimize the appropriateness of materials and assemblies — not to create history again but to parallel it and bring it into today’s conventions. “We’re not here to pickle history.”
CHOOSING THE RIGHT CLUB (SUB HEAD)
Excellence doesn’t happen without a superior team. In this respect, as well as others, Brown says, the firm has been extremely fortunate. “We’ve had people who have been here for 30 years. We’ve had others who have left for years and, happily, returned. If you’ve been here 12 years, you’re a newbie — which is weird.” The key to a great firm, he says, is a culture with core values that foster and convey integrity, transparency and honest dialogue. “Everything isn’t about money. Putting a great product in the marketplace that people want to experience has always been our goal and we do it very well.” STAYING THE COURSE
As both the leader and custodian of a country club project, Brown holds a similar philosophy. Working with country clubs that have committees of 15 and 20 — not to mention membership — often requires spirited giveand-take. “We’ve never been that pompous firm that’s so infatuated with itself that it can’t listen,” he says. “You surely have to listen and be willing to compromise, but at the same time, you have to find a way to take all the feedback and still create a product that everybody’s going to love. “That’s what we’ve always tried to do. I’d like to think we’ve been pretty successful.” So, what’s next? For Judd Brown, it’s conveying the rush and excitement of a new club in a new style in a new region to the next generation. It’s seeing that a freshness and aggressiveness of mindset (as well as talent) is continued and preserved. “We’ve got the right people to take over and move on,” says Brown. “That’s my legacy.” B R Peter Cafaro, a colleague of Judd Brown, is senior vice president, Studio JBD; director, business development, JGA, Pawtucket, RI. He can be reached via email: pcafaro@JBDandJGA.com
MARCH / APRIL 2021 | BOARDROOM
73
ROBERT A. SERECI Robert A. Sereci, CCM is general manager, Medinah Country Club. He can be reached via email: rsereci@medinahcc.org
ON THE FRONTLINES
The Pandemic Took Away My Superpowers I write to you today as a challenged, mere physically there to witness it, but he is videotaping his round and so he celemortal, with extraordinarily little standing as brates his achievement by posting his shot on the club social platform. While he and his friends are excited, there are no actual high-fives or a champion of club leadership. chest bumps, and he ends up drinking his celebratory cocktail by himself. But if I were Superman, the COVID-19 What a shame. pandemic would be my kryptonite. All of the tools with which I have built my perPersonal connection. Similar to John’s situation, I am still achieving some sonal power have been neutralized. of my objectives, but now, there is rarely someone around with whom to I know this sounds dramatic, but I must share in the joy of accomplishment. Those smiles, handshakes, and words of admit that back in March 2020, with the encouragement that are so rewarding are so missed. onset of stay-at-home orders surrounding Those who are blessed to have a “servant’s heart” give of themselves not this pandemic, I had no idea that it would for recognition but rather to feel the gratification in fulfilling the needs of have the effect on me that it has. It is not others. Getting that first-hand look at a fulfilled smile gives me my reward. just me; I know that I am not alone in this I have struggled with experiencing this through a computer monitor, and struggle. found the connection is just not the same. So many of my friends and acquaintances have felt a degree of despair, wondering Virtual board meetings. Typically, during board meetings, I sit to the how all this will end. With the trendy phrase immediate right of my president. This allows me to lean over and say someof “the new normal”, we all find ourselves thing discreetly, as the need arises. It also affords me a full view of the entire hoping for a better tomorrow. board table, allowing me to understand body language and gesture. These instructive clues inform my responses to critical questions and have often A servant’s heart. To be a hospitality allowed me to temper my opinions. champion, you must possess a “servant’s Bearing witness to non-verbal clues also improves my ability to assist my heart.” The driving pulse of that heart president. Holding a virtual board meeting does not provide me this advanis what motivates me to be of service to tage in structuring my communication. In fact, members often connect only others. This heart is foundational in the with audio, leaving me blind to all physical cues. hospitality industry. As a general manager, interacting with people is what I do best, Leading my team. Never before had I realized how effective my corporeal and it is the one thing I enjoy most. communicative style is in relating to my associates. (For those not accusLeadership can be demonstrated across tomed to the word “corporeal,” it is an adjective relating to a person’s body many facets; however, for me, there is as opposed to their spirit. I use this word in lieu of intimacy, so as not to be nothing more powerful than a face-to-face misinterpreted.) conversation. With apologies to computer Shaking someone’s hand, giving a high-five, and sometimes just being conferencing software, communicating via physically, as well as emotionally, present can be a validation of our words computer monitor does nothing for my and feelings. The new norm is administering an elbow bump. Maybe it will emotional need for human interaction. grow on me the way a high-five once did, but to me, it is just not the same. Virtual connections. I imagine the loneliThe power of a smile. One of the elements we train and teach in quality ness of a virtual club… John plays his round service delivery is that every time we encounter a member, we greet them first of golf alone, only virtually connected to with a smile. Our smile is one of our most effective tools in our communication his foursome. Miraculously, he achieves his toolbox. It enables us to show positive emotion, even when we cannot speak. first-ever hole-in-one, but there is no one 74
BOARDROOM | MARCH / APRIL 2021
Motivation. Because my team is filled with positive, fun-loving folks, I find I rely on their energy as motivation. As mentioned, I am extraordinarily fond of interacting with people on a personal level and, typically, those personal interactions have fueled my daily routine. Not being around staff and members has left me with a sense of emptiness and I struggle to answer the question, given my personal style, of how I can effectively lead when I am so distanced from the people I care about in my circles.
I were Superman, the COVID-19 pandemic would be my kryptonite. All of the tools with which I have built my personal power have been neutralized. I know this sounds dramatic, but I must admit that back in March 2020, with the onset of stay-at-home orders surrounding this pandemic, I had no idea that it would have the effect on me that it has.
The upside. I suppose that if there is a positive self-awareness take-away during this pandemic, it is that I have realized now, more than ever, people are truly responsible for my success and well – my superpowers. I do not know about you, but when we return to normal, and we will, I am going to remember to look at my acquaintances with much more admiration, respect, and appreciation, as having to physically distance from them has had a profound effect on me.
I love my family, friends, team members, and club members, and from this point forward I’m going to do more to demonstrate that. There is a reason I chose to get in the people business – it’s because I love being around the people in my life and I enjoy being emotionally available to them. So, I encourage everyone to get your vaccinations, and when the time comes, we can throw away those safety masks and I’ll re-drape my cape; get ready for one big group hug. B R
Often, we can diffuse an intense situation, resetting the mood with a genuine smile. Not only can a smile invite a positive reaction from the recipient, but it is proven that smiling can provide a positive benefit to our own state of mind. I find myself smiling less when not around others who might see it.
for years to come!
Find a coach that will make a difference...
www.uspta.com or call 407-634-3050
MARCH / APRIL 2021 | BOARDROOM
75
BRUCE BARILLA
HOUSE COMMITTEE
Bruce Barilla is president of Locker Room Consulting. He has completed 48 onsite locker room evaluations with staff training as of December 2020. www.lrcgolf.com
Locker Room Renovations Who Knows Best?
Placing it out of the way in a corner makes for extra steps and slow service. Golf and country clubs make a big mistake by not including knowledgeable input and ap- Also, having to open a door each time the attendant enters the shoeshine proval from the locker room staff when doing room is inefficient and aggravating. One feature that should never be missing is a sink with hot and cold water to clean shoes. Second on my list is either a a renovation. heated walk-in shoe drying closet like at The Greenbrier or the QuickDry4P1 Common sense concerns shoe drying cabinet from Duffy’s Tri-C Club Supply. I sincerely admire architects’ and interior Asked by a private club to review their renovation blueprints, I noticed that designers’ work, as I have seen some beauthe commodes were located directly across from each shower rather than tiful-looking completions. However, my across from the urinals, which were in a different area not near the showers. concern is whether or not they have ever Had this been redesigned, it would have prevented any unpleasant odors in worked as a golf locker room attendant. the shower area. I say this respectfully because common Not every club has separate sinks for the shower area and separate sinks for sense begs this question: How are they the bathroom. I highly recommend this and have seen it at some clubs, such as supposed to know what detailed design Keene Trace Golf Club (Nicholasville, KY) and Belfair (Bluffton, SC). features are needed if they have no locker Another concern is the long-term effect on morale when not including the room attendant experience to realize what staff members’ input. Staff members can feel insulted or have their feelings is needed. hurt when an outsider is brought in and then doesn’t even ask about staff Form should indeed follow function. Just members’ needs and/or what they would like to see differently. This is somebecause the form is impressive doesn’t thing management should make sure doesn’t happen. always mean it’s functional. After all, you don’t hire a plumber to rewire your house Attention to details or take golf lessons from the tennis pro. When I worked at Butler National, I remember asking “Red” Harbour (whose I’ve been to clubs where there is no company built the Illinois Tollway (I294) and Butler National Golf Club (Oak amenity shelf over the sinks. All the cans, Brook, IL), “What is the secret to your success?” He immediately answered, bottles and containers are placed on the “Paying attention to the details.” countertop, where they can get wet, and New does not always mean better. For example, while I was consulting at a the countertop becomes cluttered. It’s club in Ohio, the locker room manager warned the GM that even though the a relatively easy fix to install a shelf, but proposed new wood lockers will be more attractive than the current old, bent sometimes budgets or higher authorities and paint-chipped metal ones, they are not as wide and will not hold as much. won’t allow it. He was concerned the members would complain. And complain they did. The location of the greeting counter/ In another state, a new clubhouse is still in the blueprint stage. Experienced shoeshine room is essential for better and golf locker room attendants encourage the manager to feature only full size more efficient service. Depending upon lockers. He says there is not enough space. After the clubhouse opens to the the locker room’s size, it can be at the main members, many of the double stack and triple stack lockers are not rented. entrance or centrally located. The Kirtland I don’t claim to have all the answers. I learn something new every time I visit Country Club (Willoughby, OH) and The another club. I can make mistakes. However, working together harmoniously Country Club of Hudson (Hudson, OH) are accomplishes a lot. Give it a try. B R examples of clubs with greeting counters in good locations.
76
BOARDROOM | MARCH / APRIL 2021
WHITNEY CROUSE Whitney Crouse is a founding partner of Bobby Jones Links, a culture-based professional club management company based in Atlanta, GA. Whitney can be reached at ( (770) 294-3709 or whitney.crouse@bobbyjoneslinks.com.
CASE STUDY
Culture-Based Professional Management, You Say? In our industry, culture is present among our members and guests as they share experiences and build memories at our clubs. Workplace culture is built among our associates, whether they’re on the front line serving our members, or leading teams as department heads or general managers. Culture even is present among boards of directors as they make strategic decisions for our clubs. A positive, supportive, inclusive and diverse culture in the workplace can truly make a difference in the member experience through meaningful interactions, not transactions. When our associates enjoy coming to work and subscribe to our core purpose of making a difference in the lives of our members by providing remarkable service, we see a direct positive impact on the financial performance of our clubs.
With 20-plus years of experience managing and developing clubs, Bobby Jones Links provides professional management centered around building strong cultures and extraordinary service from the ground up. All of our associates are enrolled in the Jones University Service Training program and learn first-hand from our vice president of culture and coaching about what it means to provide engaging, excellent service. This is a hallmark of a Bobby Jones Links-managed club. BR
WE’RE READY TO HELP... …professionally manage your club
…deliver extraordinary member service
LET’S PLAY. www.bobbyjoneslinks.com
…make a difference for our associates and clients
BOBBY JONES LINKS | Culture-based management services
…achieve optimal financial performance
MARCH / APRIL 2021 | BOARDROOM
77
TOM NEILL Tom Neill is president of Private Club Historical (www.clubhistorical.com). His company creates strategic historical plans, discovers club history, designs historical exhibits, displays, books and historical videos. He may be reached at (949) 497-6543 or via email: tom@privateclubhistorical.com
HISTORICAL COMMITTEE
La Quinta Country Club The Wall Tells the Story
Nestled near the base of the mountains in the desert of California lies La Quinta Country Club, whose history in the desert valley includes hosting PGA events and serving as home to Hollywood stars over the years and today. The club recognizes its significant history and has committed valuable wall space to tell the story. First in their line of important projects was documenting and displaying the Bob Hope Desert Classic, currently known as The American Express on the PGA Tour. Since 1964, La Quinta Country Club has been a venue host of the tournament with a great story to tell. The 42-foot wall display tells the story from the beginning of the tournament, in 1960, and continues chronologically with supporting narrative, documents and memorabilia as it glides through the decades to the current year. More items will be added to the wall display as the club’s story continues. Secondly, another area features the winners of the Bob Hope Desert Classic from 1960 to today. The 24-foot wall also serves as a perpetual display and will add tournament winners for the next 50 years. These perpetual displays are usually spaced out more generously and will be rehung more closely on the wall as the story goes on. There’s also a “member timeline” from opening day to the most current events that is in the main hallway and serves as an interesting focal point of information, recollection and celebrations at the club. “La Quinta Country Club has a rich history going back to 1959 and we wanted to be sure we created a historical master plan that properly addressed our story,” said Bruce V. Zahn, general manager/COO. “The displays give our members a sense of pride and belonging and ultimately a better understanding of our cherished past. It’s also wonderful to see guests stopping to view as they learn our history.” Also, La Quinta Country Club made an earnest dedication to golf course architect 78
BOARDROOM | MARCH / APRIL 2021
Lawrence Hughes, the designer of the course. Zahn recognized the importance and significance of the course designer and felt it was necessary to create a display that shows an ASGCA jacket, narrative about Hughes and the course, and includes the original course map illustration. Many members were surprised about the grand story of Lawrence and his part in making what Phil Mickelson says, “is among the best on Tour.” So, what would something like this cost? There’s always a misunderstanding as to the cost of these types of displays and many general managers are happily surprised that it’s a small fraction of what they envisioned. How was it executed? It was a three-step process: first, research and writing; second, display design; and lastly, installation at the club – it’s that simple. Many clubs, even with blossoming history, clearly understand the importance of telling their stories and how crucial it is to boosting member pride, retention, usage and overall brand value. B R
Lifestyle Design TO ENHANCE THE MEMBER EXPERIENCE
Bringing members together with spaces that foster community and camaraderie.
STRATEGIC PLANNING MASTER PLANNING ARCHITECTURE INTERIOR DESIGN PROCUREMENT
SIGN UP FREE! for club industry trends & insights BALD HEAD ISLAND CLUB North Carolina
Follow @chambers1899
MD 410.727.4535 / TX 972.253.3583 / MN 612.295.0725 / DC 202.851.3201 / FL 239.673.1790
P R E S E N TAT I O N IS EVERYTHING Showcase the personality of your club with a crisp, uniform refresh.
EXCELLENCE in ACHIEVEMENT AWARD WINNER NINE YEARS RUNNING
2 0 1 2 - 2 0 20 BoardRoom Magazine
Call for consultation.
(707) 746-7011 SALES@HIGHENDUNIFORMS.COM
Visit us online to see our collection. WWW.HIGHENDUNIFORMS.COM
MARCH / APRIL 2021 | BOARDROOM
79
JARRETT CHIRICO Jarrett Chirico, USPTA, PTR, PPTA, PPR, PPTR, is director of racquets of the Baltimore Country Club, Baltimore, MD. He can be reached via email: jarrettchirico@gmail.com
RACQUET COMMITTEE
The Future of Racquets - Part I There has never been a more challenging or opportune time to be in racquets. The scope of the industry has changed, and professionals are mostly not adapting to a rapidly changing market.
face, you have an amazing opportunity through untapped potential. How you manage, mentor and educate will ultimately determine the future of racquets in this country. The platform you are given and what you choose to do with that platform will ultimately define your contribution to the industry. It disappoints me to see how money has blinded many of the greatest directors in this country to Tennis has been flat for well over a decade, the point they have failed to mentor and educate future generations. If you and despite a recent COVID bump, racquets don’t care for your staff and prepare them for tomorrow, encourage their enthusiasts are leaving for more exciting creativity, challenge them to innovate, there will be no future for them. options (pickleball, paddle, padel, etc.). ProYou have a responsibility to your club and your industry and if you fail fessionals continue to do the same programs at one, you will fail at the other. Success through innovation is essential the same way. Country clubs face the same to the preservation of clubs and racquets. What lies ahead is going to be a issues as tennis across all of their platforms, wild ride that will not only shape the careers of racquets professionals but and with no growth, there can be no future. general managers and clubs as well. Clubs know they must innovate to grow Many clubs are stuck in the past. They are crippled by history and traand retain membership. Yet, managers condition, finding conviction in past achievements, failing to realize how they tinue to hide behind tradition the way tennis achieved that praise in the first place. Professionals are offering the same professionals hide behind their belief that programming, but the results are dramatically different. tennis is the only significant racquet sport. You’re screaming to your members to meet you where we are instead of In the end, as tennis programs fail, clubs will finding them where they are. You have forgotten your ultimate goal, which continue to fail alongside them. Members is to get players on the courts. You have become complacent. You are failwill leave for new and exciting options ofing to innovate, adapt, or grow. You wouldn’t want a 40-year-old phone, fered elsewhere. The industry is changing, so why would you want to participate in 40-year-old programs? and we must adapt or be left behind. The truth is, now more than ever, the opportunities are endless. The Tennis continues to fail in the United world is changing faster than ever; your members want easy, convenient, States. There are still 17 million people playand most of all — they want fun. You always have to be thinking from the ing, but the infrastructure for future growth perspective of your membership. is nonexistent. I understand some clubs Members are no longer paying thousands of dollars a year simply for the have successful tennis programs (Baltimore privilege of being members. They have options, and they want them all. Country Club being one of them). I don’t Members want more for their money: more engagement, more facilities challenge that; however, out of the few conand more programming. The clubs that are offering that will thrive while tinuing to succeed, more are failing. others disappear. Additionally, many of the clubs with sucMany tennis programs are flourishing right now; however, if clubs wait cessful tennis programs have not invested for the downturn to innovate, it will be too late. It doesn’t matter how any time, funding, or infrastructure into great your tennis programs are right now. You are fighting a losing battle. additional racquet sports. Complacency will Waiting until programs start to lose popularity forces clubs to be reactive be the death of our industry. Your end goal instead of proactive. should be a total racquets program. Multiple It does not matter if members are playing tennis or pickleball. All that racquet sports working together to grow all matters is they are using your facility. I am always shocked when tennis racquet sports is the only way to ensure the directors refuse to try pickleball. In most cases, it is because they don’t uncontinued success of the industry. derstand it. Naturally, we fear change, either because we are afraid of new Yet, there has never been a better time to things or simply don’t understand the need. As a result, we stay where we be in racquets. Despite the challenges you are, where we are comfortable, and where we will eventually fail. BR 80
BOARDROOM | MARCH / APRIL 2021
CONTEXT
: golf practice/teaching facilities offer all-season play and enhance
your property as a sound investment. Suits your members to a tee. Architects. Planners. Interior Designers. Private Clubs, Recreation, Hospitality, Community + Education 44 North Main Street : South Norwalk, Connecticut : 203 354 5210 : rm-arch.com
DURABLE. ELEGANT. STACKING. SUSTAINABLE CHAIRS MADE IN THE USA
VISIT EUSTISCHAIR.COM TO SEE MORE 978-827-3103 SALES@EUSTISCHAIR.COM
MARCH / APRIL 2021 | BOARDROOM
81
FRANK WOLFE Frank Wolfe, CAE is CEO for Hospitality Financial and Technology Professionals (www.hftp.org).
EXECUTIVE COMMITTEE
Career Elevation Requires an Internal Approach to Customer Service “As we look ahead into the next century, leaders and this opened up the possibility to the entire world. It also resulted in a vast array of new leadership styles and the idea will be those who empower others.” – Bill Gates that leaders should lead not based on a singular idea of leadWhen we typically think of customer service, we imagine our efforts directed to our members – those in need of our attention who are making dining reservations, using valet parking, booking tee times and making inquiries of staff when they are on-site. Yet, that is just one side of the coin that is member service. The other side requires you to look within the organization. Internal customer service is how you treat and interact – as well as build real and meaningful relationships – with everyone that you work with every day. You are applying for that future manager’s position every time you open your mouth in the workplace. This is how you should come to view customer service. This novel approach to the age-old concept of customer service was the focus of the Cyber HITEC closing general session, presented by hospitality industry academic Justin Taillon, MBA, PhD, CHTP. As an academic, Taillon illustrated the history and evolution of leadership – which is an integral, necessary component of effective management. The virtual event was produced last October by HFTP, and while HITEC is a tech-focused show, I think the discussion is worthy of consideration to all of us in leadership positions. According to Henri Fayol, an engineer and economist who helped develop modern management theory more than 100 years ago, there are only four things that managers must do, and must do well: plan, organize, lead and control. Becoming a manager does not automatically make you a leader. We often accidentally call people within our organizations “leaders” simply because they are higher than us in the organizational chart – but that is inaccurate. We need to think of leaders as those who have earned followers. The concept of leadership has a complex and unique history. In 1840, leadership was restricted to what was called the Great Man Theory, where one must be born a leader; it was a skill that could not be learned. (As you can tell from its name, it excluded women.) Later, the concept evolved to proclaim that leaders are not just born as was believed. We could also make leaders, 82
BOARDROOM | MARCH / APRIL 2021
ership but based on their personalities. As the world headed into the new millennium, leadership models shifted their focus away from the leaders themselves and instead focused on the people being led. Leadership styles should change not based on who we are as leaders, but on the people we are leading. This is known as transformational leadership – and, as you can imagine, it is incredibly important to the successful management of teams as they become increasingly diverse and multigenerational. If managers pay real, meaningful attention in positive ways to each member of their team, team members will follow them and exhibit greater output. This ability to control output, your environment and the behaviors of your team – or what is called “power” – drives leadership. Leaders can leverage power and control the entire output based solely on their ability to build real, meaningful, positive connections with their staff. Power is often seen as unjust, but that is only when it is used in an unjust way. The real leaders of the future are not those who force others to do their bidding – but rather those who inspire and motivate their teams to accomplish goals they would otherwise not achieve. Power can be exerted in different ways. There is the power to coerce, or force, others to do your bidding. There is also the power to reward others for their service, or even withhold rewards in order to punish. In his presentation, Taillon asserts that there are three types of power that, when combined, drive leadership. Legitimate power is that which is invested in a role or a title (i.e., manager). Referent power comes from others liking you or wanting to emulate you (think, charisma). Finally, expert power is when an individual has the specialized knowledge and skills that someone else requires. Leaders should cultivate a blend of legitimate, referent and expert power. The management area you must improve most as you navigate your way through your professional journey is this invaluable soft skill of leadership. In school and training, the primary focus is often on obtaining hard skills and technical knowledge. The ability to lead is not even particularly valued when you start your career. Ultimately, in order to move up the hierarchical chart – to get a seat at the table or be in the room where it happens – professionals must learn leadership. BR
TREVOR COUGHLAN Trevor Coughlan is vice president of marketing with Jonas Club Software. He can be reached at (888)789-9073 or via email: trevor.coughlan@jonasclub.com
TECHNOLOGY COMMITTEE
Understanding Cloud Versus Locally Hosted Software The term cloud software gets thrown around a lot in our industry, but often when questioned on the term, I have found that opinions on what defines cloud software can vary significantly. Part of this is likely caused by the wide range of software deployment options available today, from owning your own server to running exclusively through a web browser. Couple this with the fact that, to many people, the term cloud is often used any time an internet connection is part of the equation, and the whole topic can quickly become muddy if not outright confusing. So, with all of this in mind let’s define the two ends of the software deployment spectrum: cloud software and locally hosted software. True cloud software, in its simplest term, is any software that runs exclusively on a web browser, such as Firefox, Google Chrome or Safari, and requires an internet connection to function. At the other end of the spectrum is locally hosted software which is installed on a computer and requires no outside connectivity to operate. To illustrate these two technologies at work, we need to look no further than Microsoft Office and Google Workspace. Both product suites are designed so we can write and edit content, analyze financials within spreadsheets, and create presentations to wow audiences. However, despite their many similarities, the fundamental difference is when and where we can access and process information. With traditional Microsoft Office, everything is loaded and saved onto your local hard drive. Interested in working in the middle of the wilderness miles away from the nearest internet connection? You can still crunch numbers and perform VLookups until you’re blue in the face. If you’re a Google Workspace user on the other hand, you’d better stick close to an internet connection because once you’re disconnected, so is your ability to access or edit any of your saved information. Cloud software provides the advantage to work anytime and anywhere, but if you often have connectivity issues or degraded internet performance,
cloud software can quickly become more of a drawback than a benefit. This becomes especially apparent in-service businesses where technology isn’t only needed to operate behind the scenes, but also to provide or facilitate service to customers. Consider what would happen if your club were to lose internet connectivity for a short time. Your finance team may be able to wait out the interruption in service, but your front of house staff in the middle of a busy dinner service may encounter an entirely different scenario. Internet connectivity is just one of the considerations clubs need to make before selecting a software deployment solution. Cloud software considerations • There is no need to tie yourself to one work device. You can use your desktop at work then pick up where you left off from your laptop or iPad at home. • Updates, security and data backups are managed by your software provider. This means you are less reliant on an in-house or third-party IT resource. • There are often lower upfront hardware costs associated with cloud software. Since all the data processing is taking place in the cloud, you can operate using less powerful devices. • Despite the lower costs associated with hardware, monthly or annual fees can be significant as providers need to work hosting costs into their pricing models. Locally hosted software considerations • You are in control of product updates. This allows you to schedule them when it is most convenient for your business and ensures your staff don’t unexpectedly encounter brand new functionality or user interface changes when they log in. • Locally hosted software is very stable; issues outside your club’s network won’t impact your ability to operate. For instance, you don’t need to worry that your software provider may suffer a service outage, and internet connectivity never needs to be a concern. • You will likely need to have in-house IT expertise or a trusted third party to help you with hardware acquisition and upkeep, as well as maintenance of your local network. • The upfront costs can be higher due to the need to purchase more robust computers and servers. Nothing is black and white and there are a number of additional deployment options available to your club that sit somewhere in between these two ends of the spectrum. These include RD Web, remote hosting and thin client setups. If you are curious about cloud, locally hosted or any of these additional deployment methods, you should reach out to your current software provider for a clear understanding of how their systems can be implemented or re-implemented to best suit your club’s needs. BR MARCH / APRIL 2021 | BOARDROOM
83
BILL BOOTHE Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment. Bill can be reached at bboothe@boothegroup.com
TECHNOLOGY PERSPECTIVE
Ransomware: A True Story Wikipedia: “Ransomware is a type of malware from cryptovirology that threatens to publish the victim’s data or perpetually block access to it unless a ransom is paid.” And so, the story begins… Day 1: Begins like any other Tuesday morning for the club’s outsourced managed services provider (MSP). Nothing to speak of until mid-morning, when the front gate guard calls the club’s controller complaining he is unable to print anything. The controller, who is tech savvy and handles many minor systems issues herself, drives out to the front gate to see what could be done. Looking at the guard’s desktop, she senses that something serious is happening. At about the same time, a technician at the MSP notices that the previous night’s backup did not go through. Sensing that something is amiss, the technician drives over to the club and logs into the club’s server. He quickly notices that an intruder is attempting to disable the antivirus software that protects the club’s network. He also sees that the network is not functioning normally. A quick bit of investigation reveals the answer: a ransom note. The technician immediately begins physically unplugging all desktops, POS terminals, and the network servers. “Greetings. You have serious security vulnerabilities. This can lead to leaks of important information for your company. We can help you in this matter.” Thus, begins a painful 11-day period of the club’s computer network being completely paralyzed by the threat actors. Days 2-4: Initiates the forensics stage of the restoration process. The club is fortunate to have in place a cyber liability insurance policy with an experienced and reputable carrier. The carrier’s forensics team immediately begins its work and identifies the network entry point to be a tablet PC using Remote Desktop (RDP) without a secure 84
BOARDROOM | MARCH / APRIL 2021
VPN connection. This is a simple oversight on both the club’s and the MSP’s part. An oversight that opens up the club’s network to the threat actors. In the process of securing the network from further damage, it is discovered that the threat actors had actually entered the network a full two months earlier, giving them ample time to thoroughly explore the network’s files and obtain passwords. And as is the common result of a ransomware attack, they have encrypted the server and all backups. Wikipedia: “More advanced malware uses a technique called cryptoviral extortion. It encrypts the victim’s files, making them inaccessible, and demands a ransom payment to decrypt them.” Day 5: The insurance carrier’s negotiating team makes contact with the threat actors. The ransom demand begins at mid-six figures. Here is a redacted portion of the online negotiations: Insurance carrier negotiator: “How are we supposed to pay $XXX,XXX?? There’s no way we can do that. And we don’t even know what we get for that price...” Threat actor: “You will get decryption program to recover all your infected data and any details about vulnerabilities you have.” Negotiator: “So it costs that to get our files unlocked? What if we can’t afford that?” Threat actor: “You can afford. It is reasonable price. This is an unexpected expense for you, I understand, but the price is acceptable for you.” Negotiator: “We can’t pay that kind of money for this. We’re better off recreating some of the data. We just thought this would be a quicker solution for a decent price.” Threat actor: “You can make an offer and we will consider it, but we do not expect small money from you.” Negotiator: “We’ll have to see because we have a rough idea of how much it may cost to recover ourselves.” Threat actor: “Also take into account the fact that we have your files; if you are not aware of our methods of work, you should be aware that we publish confidential data of companies that do not pay.” Simultaneously, the insurance carrier’s public relations and legal team begins to formulate a communique to the club’s SEE TECHNOLOGY PERSPECTIVE | 102
XHIBTZ business cards.qxp_Layout 1 8/25/17 9:3
WE HAVE A FULL RANGE OF PRODUCTS TO SATISFY ALL YOUR NEEDS
POOL FURNITURE • BEACH FURNITURE • UMBRELLAS • CABANAS • PATIO FURNITURE • CUSTOM CUSHIONS
Steve Berlin 2012 - 2020
954.614.1505
STEVE@XHIBTZ.COM | WWW.XHIBTZ.COM
MARCH / APRIL 2021 | BOARDROOM
Steve Berlin
954.614.1505
85
JERRY MCCOY
WINNING STRATEGIES
Jerry N. McCoy, MCM, is the president of Clubwise, LLC, a consulting firm specializing in strategic planning, master planning, operational audits and governance issues. Jerry received the Lifetime Achievement Award from BoardRoom magazine in 2018. He can be reached at www.clubwiseconsulting.com or cmaamcm@msn.com
Talking to Myself Past Club Management Association of America (CMAA) national conferences exposed participants to the newest product and service ideas available in the private club industry. The conference was also an outlet for the latest educational opportunities and creative ideas being implemented at the finest clubs in the world. It is important to share the vision that was presented to managers with club directors. To that end we have decided to examine the status of our industry as presented at the conference and discuss what may be the biggest trend for the future. To help us with this examination, we have tapped one of our own. Jerry N. McCoy, MCM, president of Clubwise Consulting, a firm specializing in membership surveys, strategic planning, master planning and capital asset replacement. Clubwise is recognized as a leader in educating managers and club boards on the latest trends facing the private club industry. Clubwise: “Mr. McCoy, thanks for taking the time to visit with us.” McCoy: “It is my pleasure.” Clubwise: “When club leaders look at trends, they are looking for ideas they can implement that may help provide solutions to their problems? What exactly should leaders be looking for when they examine trends?” McCoy: “It is great to find a good idea that someone else has already tested. Copying success can have real benefits. However, club leaders should not be focused too much on individual ideas. An idea that works well at the club across town can be great for you, but it may also be detrimental to your own club. “Leaders should be developing systems that will allow the club to test ideas for value. Testing will allow them to accept and reject ideas based on the individual needs of the club. They then will be better positioned to deal successfully with the myriad of problems that they may face. The number one trend that will impact clubs in the future is the level in which boards educate themselves about the 86
BOARDROOM | MARCH / APRIL 2021
club industry, so they have the informational resources to make good decisions.” Clubwise: “What has led you to this premise?” McCoy: “To answer that question we need to review a little history. Our industry has never been a leader in adopting progressive management models. In the 1960s, most clubs were still operating with individual department heads reporting to an unpaid volunteer board that gave guidance, many times to an excess, and other times only on a part-time basis. “As associations representing the club industry profession grew in stature, they helped promote professionalism by offering opportunities for growth through continuing education. However, it wasn’t until the ‘70s and ‘80s that professional associations really concentrated on education as the number one priority. This education push promoted progressive philosophies to management professionals. “This group of managers took that new knowledge and put it to work to the benefit of their clubs. Individual managers benefited personally and professionally from the specific educational opportunities that were being offered. “At the same time, general manager and chief operating officer concepts were being used regularly in the business community. Progressive leaders of the professional associations, like CMAA, promoted these concepts in private clubs. Young managers were joining the industry with a higher level of formal education than their predecessors. This new breed of manager had been exposed to successful organizational structures and expected no less in the clubs they were running. “A new type of director also became more of an influence on club boards. Directors who have spent their careers in the corporate environment were willing to give management the authority to act, as long as management accepted the responsibility for their actions and were willing to be held accountable. Clubs have since benefited from adopting these sound management principles and this progression has been a very positive one for private clubs.”
Clubwise: “Has the rapid development of golf facilities and the rise of management companies had an impact?” McCoy: “Absolutely, and in a major way. One of the biggest impacts has been in their use of marketing. Private clubs now see that marketing can play an important role in member-owned clubs. It is the job of a club to continually reinforce the fact that the member is making a good decision by paying dues and sponsoring new members. “Advertising, marketing and sales were all dirty words to private clubs not too long ago. Today they all have a role to play in the financial success of the club. The leadership in the more progressive clubs has embraced a proactive approach to marketing.”
HR policies and governmental intervention have all made officers and directors more concerned about making sound decisions during their service on the board. To combat potential problems in these areas, they demand more information.” Clubwise: “Is this really a new trend if club boards are already concentrating on educating themselves?” McCoy: “My comments are based on my experience with the more progressive clubs. Unfortunately, those clubs with the most resources are the ones that do the best job in this area. Smaller clubs, or those clubs in less populated areas, outside major metropolitan centers, have been slower to get the education they need. Unfor-
When manager education was promoted during the ‘70s and ‘80s, the club industry prospered. It has again prospered as more and more clubs adopt the GM/COO management models. It will continue to prosper again as better educated boards make effective strategic decisions in the best interest of the membership of their clubs.” Clubwise: “You proposed that the major continuing trend is board education.” McCoy: “I believe there is a different type of individual sitting on club boards today. The directors of today understand that the economic times we are in require them to use all the resources available to make good strategic decisions. “Board members want to know more about how the club functions. Boards are run more professionally. They see the value in outside consulting, they do extensive strategic planning and take their fiduciary responsibility seriously. “Many companies and organizations developed written materials, targeted education sessions to the board/manager team and even promoted a magazine specifically for board members. Managers have been an excellent conduit in getting this type of information to their boards. Smart clubs are setting aside more funds for education, even in these tough economic times. They see that the small expenditure involved can pay big dividends.” Clubwise: “Is there anything else you see as reasons for this trend?” McCoy: “Certainly. Board members have gravitated to wanting to know more about what they are doing based on the legal and legislative issues that have permeated our industry this past decade. Privacy, discrimination, liability,
tunately, these are the clubs that are the most in need of good information. “But like anything, success will breed success. As educated club leadership, teamed with a GM/COO, lead the more progressive clubs to even greater successes, other clubs will attempt to copy their methods. The demand will then swell for more educational opportunities by club leaders. These leaders will also be more receptive to outsourcing specialized consultant services that should not be undertaken by the COO. “When manager education was promoted during the ‘70s and ‘80s, the club industry prospered. It has again prospered as more and more clubs adopt the GM/COO management models. It will continue to prosper again as better educated boards make effective strategic decisions in the best interest of the membership of their clubs.” McCoy: “So I said to myself, ‘We would like to thank Mr. McCoy for taking time to share his thoughts with us. Clubwise believes that educated directors can definitely make the greatest positive change to the private clubs that they lead.’ “ So, what’s changed? This was written 15 years ago. We are moving slower with boards than we have with general managers. B R MARCH / APRIL 2021 | BOARDROOM
87
GORDON WELCH
EXECUTIVE COMMITTEE
Gordon Welch is president of the Association of Private Club Directors If you or your club are having issues with your board meetings or are interested in a board orientation, please call me at (918) 914-9050. I would love to help!
10 Tips for Directors Plus One - Part II Editor’s note: As members of boards of directors prepare for their stint leading their private clubs, here are some tips to help your board work effectively and efficiently. In our January/February BoardRoom, we published the first five of the 10 tips Gordon is recommending for clubs. Here are the final five tips. 6. Develop relationships with key advisors. The GM will be the main contact with the club’s key advisors, such as the club’s attorney and outside accountants. However, the board should meet these individuals. Some believe they save money by only calling on their outside professionals when a thorny issue arises, but a prudent approach is to check in with these advisors periodically, via your GM or president. Most clubs rarely need these professionals to attend board meetings, but some clubs regularly provide their agenda and meeting minutes to their attorney and outside accountant as it is often better to pay for 30 minutes or an hour of prevention rather than many hours of cure. 7. Keep up with developments in the law. Using your general manager’s continuing professional opportunities (such as CMAA meetings), the club’s participation in other industry organizations and your good relationship with your professional accountant, the board should keep abreast of developments in the law and the industry. Your board should never “reinvent the wheel.” Over the last few years, much has been written about such challenging topics as membership rights for unmarried couples and same sex marriage and addressing the challenges of reduced revenues without violating 501(c)(7) restrictions. Between your GM’s contacts with other clubs in the industry, your contacts through industry organizations, and your (hopefully) experienced club attorney, accountant professionals’ broad experience in the industry and with related legal issues, you should be able to see what other clubs have done against your club’s needs to shorten your learning curve and reduce your expenses. 8. Always be proactive. Being proactive doesn’t mean you need to rush a decision or execute a half-completed plan. Rather, it means you are aware, actively listening and questioning, and anticipating challenges. If you have had the “opportunity” to attend a driver education class, your instructor might have explained a system that encourages the driver to “keep your eyes moving” and “always get the big picture.” This means the driver is constantly receiving and evaluating information in light of other things the driver knows. Seeing brake lights ahead and considering the weather conditions, drivers may modify their speed. This is good advice for the club’s board of directors. Watch for trends. Keep up with the industry. Know what clubs are doing in your area. Manage by walking around. The board should not be surprised by the obvious. 9. Recruit the right regime. You need to take the nominating process very seriously. Some clubs ask the immediate past president and one or two directors in the final year of their term to act as an unofficial “board development” committee. These individuals would eventually be appointed to the nominating committee whenever it is established. However, before the official “nominating process,” the board development committee can begin to identify the areas of expertise needed on the board and the upcoming major projects and can compare that to the leadership coming up through the committee level. 88
BOARDROOM | MARCH / APRIL 2021
You may have experienced the frustration of serving on a community board made up of all lawyers or accountants but no fundraisers. There are many other board compositions that don’t work: all leaders and no worker bees; too many directors who travel extensively and are never around the club in between meetings. A group out of balance between those who want to ponder a decision to death and those who want to act instantly; etc. These board development members have served on the board and seen its strengths and weaknesses, and they can help develop a strong and thriving board. 10. Revise those bylaws. Some clubs bounce from year to year only referring to the bylaws to be sure the annual members’ meeting is mailed on the proper date. However, bylaws may include key provisions that you rarely consider. By the time those provisions come into play, it is too late to change them, and it may create huge challenges. Perhaps you have revised your bylaws to allow women to golf more often, but you have not begun to address the issues of couples. Laws in many states are changing with respect to same-sex couples, and the club that does not consider it may find that the changing legal landscape essentially changed the club’s bylaws without your input. As another example, bylaws provide quorum and voting requirements for member meetings. If your membership has evolved so that a quorum is no longer likely to appear in person, perhaps you need to expand your proxy provisions. If certain SEE EXECUTIVE COMMITTEE | 95
MARCH / APRIL 2021 | BOARDROOM
89
from BoardRoom Design Feature | 29
CHRIS MCCAGG, AIA PRESIDENT/CEO ROGERS MCCAGG ARCHITECTS & INTERIOR DESIGNERS
• Outdoor dining areas with fire pits extend the season • UV and ionization systems create safe indoor spaces • Golf practice/teaching facilities with simulator bays promote all-season play • Multi-use pool areas and upgraded locker rooms create resort-like settings, and • Amenity-rich children’s lounges and camp buildings allow kids to relax in dedicated spaces. FRANK VAIN PRESIDENT MCMAHON GROUP
We learned in 2020 how valued private clubs can be when they focus on their members. Clubs provided a place of refuge in an uncertain, threatening world. They should carry this spirit forward into 2021. The pandemic forced clubs to relearn the definition of “member-centric.” In 2021, commit to creating a home-away-from-home for your members by reimagining your physical plant to provide a casual, family-friendly upscale lifestyle and fill it with activity due to your innovative, relevant programming. BRIAN IDLE CEO PEACOCK + LEWIS ARCHITECTS AND PLANNERS
As designers of club amenities, P+L has always enjoyed creating award-winning solutions which enhance the lifestyles of the members we serve. What we are designing for our clients include: 1. Technologically advanced HVAC systems which kill airborne pathogens. 2. Flexible use of all-weather spaces which open completely to the outdoors with retractable screens and environmental control. 3. Permanent and portable covered outdoor gathering spaces with bars, fire tables, lounge furniture, and TVs.
90
BOARDROOM | MARCH / APRIL 2021
4. New aquatics complexes with multiple resort-like features in one body of water or multiple bodies of water with shade structures, abundant landscaping and a pool deck bar. 5. Did I mention bars….? 6. Kitchens with more plate-up space and holding area to process take-out orders which will slow over time but not go away. In addition to expanded outdoor play courts ( basketball, bocce , croquet , pickle ball and tennis) clubs are requesting covered outdoor fitness offerings as well (spin terraces , yoga lawns, meditation gardens , free weight kiosks). PETER CAFARO SENIOR VICE PRESIDENT STUDIO JBD/JEFFERSON GROUP ARCHITECTURE
The overwhelming focus of the hundreds of club members I have spoken with over the past two months is for more and better outdoor space. COVID-19 did not start members’ desire to be outside – if fact we have been creating more outdoor spaces at clubs for the past five to six years but spending time outdoors has become much more natural. I expect the trend to dine and gather outdoors to continue well past the eventual passing of this pandemic. CHRISTOPHER J. HAMPTON GENERAL MANAGER/COO SYCAMORE HILLS GOLF CLUB FORT WAYNE, IN
Before the pandemic, I avoided communicating and talking with our membership about the mechanics of what happens behind the club’s scenes on a day-to-day basis. We wanted them to feel the magic and not worry about how that magic comes to be. Now I overshare what we are doing behind the scenes to give them a sense of comfort that we are doing everything we can to keep both them, their families, and us as safe as possible. We found that the more we communicated about what we were doing as a club because of the pandemic, the more membership utilization we experienced campus wide. B R
NANCY BERKLEY Nancy Berkley is an expert on women’s golf and junior girls golf in the U.S. Nancy is a member of the World Golf Foundation Women’s Committee, and a member of the National Golf Foundation. She shares news about women’s golf – along with her opinions on www.nancyberkleygolf.com. Nancy has served on the governing boards of two golf clubs and currently is on the green committee and marketing committee at Frenchman’s Creek Beach & Country Club. She is a contributing writer for LPGA publications.
NANCY’S CORNER
More Juniors Playing More Golf Even in Snow Country
Nancy’s Corner is short this issue, but my message is very important. Current research from The National Golf Foundation and other golf research organizations report that the number of young golfers has been growing significantly during the COVID-19 pandemic. On a personal note, for many years I’ve been urging my three older grandchildren to take up golf. They live south of San Francisco and belong to the Peninsula Golf Club, which is the only course west of the Mississippi River designed by Donald Ross. It has an excellent junior golf program. I bought them sets of clubs and membership in the USGA so they would have their USGA bag tags and rule book. This past summer and fall, they became golfers! Now I get texts announcing every “birdie.” The family also belongs to the Martis Camp Lodge and Golf Course – a Tom Fazio design course, close to their home in Truckee near Lake Tahoe, CA. Martis Camp also has an excellent 18-hole putting course. So, when it’s not good snow on the slopes, it’s a great chance to practice putting on the club’s 18-hole putting course or practice on the club’s golf simulators… great ways to encourage clubs to grow their junior golf programs. B R
To: Boardroom Magazine From: Big John Grills
MARCH / APRIL 2021 | BOARDROOM
91
Orient and Develop your Board of Directors Replace emotions with facts! BoardRoom Institute gives your club board access to top experts in the private club industry. Hundreds of years of combined experience and hundreds of thousands of dollars worth of information in over 45 educational videos. BOARD AND CLUB BENEFITS • 24/7 access • Affordable • Prevent club lawsuits • Accountability
GM BENEFITS • Reduce micromanagement • Collaborative governance • Creates a shared playbook
Until now, almost all board member education rested squarely on the shoulders of the GM/COO. This was, and continues to be, a tremendous responsibility. The good news is that this is no longer the case and help is available - The Association of Private Club Directors is here to help you. Robert Sereci, GM/COO Medinah Country Club, Medinah IL
A Few of BoardRoom Institute’s Industry Experts!
John G. Fornaro BoardRoom magazine
Gordon Welch APCD
Tarun Kapoor Kapoor & Kapoor
Jerry McCoy Clubwise Consulting
Randy Addison Addison Law
Michael Scimo President, Medinah CC
Robert Sereci GM/COO, Medinah CC
Gregg Patterson Tribal Magic
Kevin Reilly PBMares
Rhett Evans GCSAA
Rick Coyne ClubMark
John Embree USPTA
Jim Fedigan Jonas Club Software
Jim Butler Club Benchmarking
Phil Harvey Venture Insurance Programs
Pete Bevacqua President, NBC Sports Group
Philip G. Newman Partner - RSM US
BoardRoom Institute is brought to you by APCD. For more information please visit apcd.com or call 918-895-APCD (2723) to speak with a representative.
from Cover Story | 24
“Seven years ago, we added Tom Wallace as a partner in what is now Kopplin Kuebler & Wallace. So, from the two of us, me and Nan, our firm has grown to include 17 associates, either as search and consulting executives or staff in administrative support roles,” Kopplin explained. It hasn’t all been a bed of roses for many companies, including Kopplin’s group, servicing the private club industry. The great recession of 2008 put a damper on activities as many companies and clubs struggled with just surviving, let alone growing and expanding. Much the same has happened again, as the industry has hunkered down and has had to develop innovative ideas to meet club members’ demands during the COVID-19 pandemic. It’s not all gloom and doom. “We’re very optimistic about the future and evaluate opportunities that we see emerging as we come out of this terrible pandemic,” Kopplin emphasized.
from Executive Committee | 34
kering, or a major re-routing, be prepared for a higher budget. While a minimalist approach is not always possible, moving less earth will create a more natural look and lower budget. 2) What is your design process? Do you produce a detailed set of plans and specifications to guide the golf course contractor? This is important to establish a budget and hold everyone accountable. While “free-flowing in the field” architects often produce beautiful work, it’s harder to establish a budget with that style. 3) How do you assist in the selection of a contractor? The answer should be a bid process of experienced firms that bid to the set of plans. Of course, one does not have to pick the low bid, but you need to put yourself in a position to compare apples to apples. This approach also applies if an agronomist or irrigation designer is needed. 4) How often do you visit the project during construction? Drawings are important, but sometimes the architect can make excellent adjustments in the field if present at key construction milestones. 5) How long will the course be shut down? This has obvious financial implications. The schedule is usually driven by a grassing window that occurs at a certain time of year. 6) What is your view on playability? We all love the great championship courses, but does the everyday amateur want to play them and get bloodied every day? This is a philosophical point, but by and large, you want a playable
94
BOARDROOM | MARCH / APRIL 2021
“The private club business has proven to be resilient and we have been proud to partner with so many great general managers, club department heads and board members creatively to survive and thrive in these challenging times.” It’s been a long time since Kopplin picked up that phone call from a club president in Eau Claire, WI that put Kopplin on a path of incredible success. “Working in this industry is my passion. It’s something I enjoy every day,” Kopplin added. “My KK&W partners and associates keep me very busy and while I don’t travel a million miles a year anymore, I’m fortunate to work on the projects I choose. “I’ve cherished every one of my 45 years in the private club industry, and I tell people who ask what I am doing these days that these are not my retirement years. They’re my Renaissance years!” To which we say, Amen! B R
course that your members and guests will enjoy time and again. This will improve member satisfaction and drive dues or greens fee revenue. 7) What is your view on sustainability? We are all responsible for being stewards of the environment, and if you are going to renovate, you should strive to create a more sustainable golf course. If the architect has courses in their portfolio certified by Audubon International, for example, that’s a plus. 8) Can you provide references from like clubs? This may be the most important question. Talking to clubs that have worked with the architect from start to finish will glean critical information and insight. 9) Where is your office? While this is not the highest priority question, having an architect in reasonable proximity will likely mean that you will get more attention and more affordable visits during construction. You’ve reached the home stretch! You should be able to narrow the search to three competitors, all of whom have proven that they can do the job. Now it’s a beauty contest. Given the competitive state of the golf course design business today, it’s appropriate to ask for conceptual sketches unique to your course in a final proposal/presentation. These materials will communicate a unique vision and lead to meaningful and relevant design discussions specific to your course, and hopefully, a clear and educated choice! Good luck! B R
from Executive Committee - Wochaski | 38
ployees. If possible, err on the side of over communicating because this will assure that everyone understands. Team-oriented. Being a part of a team is something we all desire. We have been associated with teams our entire lives. Many of the sports we watch or play promote teamwork and camaraderie. So, this should be a natural towards building your team at the golf course. A team is built through hiring, training, coaching and a good leader — the same traits as a successful sports team! Genuine interest in every person’s well-being is the intent of every good leader when managing their property. I am not sure the empathy and genuine care takes place for every employee when multiple priorities are being managed every day. The easiest way to assure you are making the best effort or putting through the right filter, is no from Executive Committee - Welch | 88
decisions require a supermajority vote and you never realized that level of participation, perhaps you should make the one time push for member participation to vote to reduce those hurdles now, rather than be stuck in the future when an issue is urgent. While you are at it, update the club’s rules. Be sure your rules allow you to discipline members who might create
matter what the situation, put yourself in your employee’s shoes and then make your decision. This will help you make the right decision. Do not be afraid to ask questions and admit you do not have all the answers. It is part of being a good person. Leaders need to lead, and if you don’t ask the tough questions, you can’t make the right decision. How many times do you ask a question in a tough personnel situation and after getting the answer you have an entirely different outcome to your response? Remember you do not have all the answers. The simple phrase “what do you think?” goes a long way. I have always tried to use the basketball or football analogy. A great sports team will always have an exceptional coach. This is not a coincidence — it’s leadership. How good is your team? This will tell you how good a coach you are! B R
a hostile work environment for employees, address safety and courtesy issues, etc. Plus One: With today’s technology, an individual can leave a mobile device in the boardroom and eavesdrop while out of the room. I know it is a difficult task but consider a no cell phone or mobile device policy in board meetings, interviews and executive committee meetings. You want to be able to speak frankly – but you never know who might be listening. BR
MARCH / APRIL 2021 | BOARDROOM
95
INNOVATIVE
IDEAS
Anything But Ordinary Dining can be an adventure – just ask the people who have been doing it for 117 years. Deep in the heart of New York City, you’ll find the Explorer’s Club, an impressive place hosting impressive people since 1904. It’s a celebration of the impossible, the possible, and a vision for the future. Think Harry Potter’s Hogwarts for adults. But what is this place? Located at 46 East 70th Street, the club is as impressive in architecture and decor as it is in those who frequent the club as members. With its Tudor arches and renaissance timber framing, the Jacobean architecture is as eclectic as the club itself. The biggest attraction though? The Explorer’s Dinner. A fantastical evening for over 1750 members. “It’s a unique event as it is the largest collection of world-class explorers and scientists that come together every year,” said Richard Wiese, the Explorer’s Club president. He added that “since the club began, it has been a meeting point and unifying force for explorers and scientists worldwide.”
This exclusive club exists with the goal of promoting scientific exploration of land, sea, air and space by supporting research and education in physical, natural, and biological sciences. Members are notorious for having the world’s firsts. From the first to visit the North Pole, at the dining table today, you’ll find 200 who have been there. The South Pole? Yep. The club is home to a member who was the very first. Now 100 members have found their way there. How about summiting Mount Everest? They have the first and today you will find two dozen or so who have looked down from the world’s highest peak. There is the first to see the Marianas Trench first hand, the first to touch the Moon’s surface. There are eight Apollo astronauts. Another three dozen or so have been to space, orbiting the earth. Even Jane Goodall is sure to make an appearance! This is just a taste of the impressive membership at such a prestigious club. Not only is the club filled with notable people, but you’ll also find rare artifacts, archives, a library and a map room aimed at preserving history and assisting those interested and engaged in exploration and scientific research. The membership makes the Explorer’s Dinner an evening interesting - but the best part of the explorer’s dinner is the fact that friendships are rekindled each year. “People talk about expeditions they would like to go on and enjoy talking with each other, meeting new and interesting people,” says Wiese. “They all speak the same language - the language of science and exploration.” SEE INNOVATIVE IDEAS | 107
96
BOARDROOM | MARCH / APRIL 2021
ELLERY PLATTS Ellery Platts, Innovative Ideas editor, earned a Bachelor of Journalism (Hons) from the University of King’s College where she balanced her love for writing and photography with varsity athletics. An avid golfer, she has been in the club circuit since early childhood where she played as a member of Silver Springs Golf and Country Club, Calgary, AB. To submit an idea or story for this section, please email ideas@boardroommag.com
More Than a Luxury Destination The club has created a partnership with the Living Reef Foundation Bermuda. An island covered in beautiful pink sand beaches, accompanied by bright blue water that Coral Garden Adoption Project, a project aimed at helping coral restomimics the brilliant blue of the sky, and of course, ration in Bermuda and ensuring its sustainability in years to come. Linberg says that members who “Adopt a Coral Garden” assist the rum swizzles. foundation with the initial care of young corals. This attention is critical Where better to enjoy this incredible setin maintaining their health and growth until they become well estabting than at Tucker’s Point? Truly the height lished. of luxury and true relaxation if you’re on the “Through their participation, our members become unique environisland. But this is much more than just a club. It mental stewards of Bermuda’s reefs.” is the only master-planned destination resort Their giving back doesn’t stop there. They also work hard fundraiscommunity in Bermuda, immediately setting it ing for the Bermuda Aquarium and Zoo, as well as the Family Center, a apart from other private clubs on the island. group providing essential programs and initiatives to support Bermu“Not only do we benefit from our beautiful dian families and children in need. locale with gorgeous weather and hours away In July of 2020, Tucker’s Point partnered with Bermuda singer-songfrom the East Coast of the U.S., but our comwriter, Heather Nova, to support the Family Center after it was severely munity is anchored by the five-star Rosewood impacted by COVID-19. The club hosted an intimate dinner series with Bermuda and luxury amenities including our the artist to raise money in support of the organization. famed Beach Club, Tucker’s Point Golf Course “We were proud to help support [the Family Center’s] work and that and the Cliff Drysdale Tennis Centre,” says our local community came together to support those most affected by membership director Melody Linberg. the pandemic,” Linberg added. Did you know that the private beach is the These efforts continuously demonstrate the club’s desire to give longest on the island? But even with amenities back to the community and represents the Bermudian culture of hoslike these, much like every other club this past pitality well. B R year, Tucker’s Point were affected by the coronavirus pandemic. Over the last year, Tucker’s Point has shifted its focus to attracting new members from within Bermuda looking for a vacation-like escape in their very own backyard. “Clubs like ours are more important now than ever before,” says Linberg. “With increasingly less personal contact in our business and social lives, people still crave company in a safe social environment.” This newfound interest in local residents signing up was a result of the club’s reputation and the number of amenities available across the 240-acre property. In turn it has led to an increase in sales during 2020. The club doesn’t just focus on the community within its walls. The club works tirelessly to improve the lives of those living in the surrounding area, as well as the environment they are blessed to enjoy daily. MARCH / APRIL 2021 | BOARDROOM
97
MICHELLE TANZER
LEGAL COMMITTEE
Michelle Tanzer, Esq. provides strategic guidance to private clubs nationwide, serves on the National Club Association board of directors, arbitrates club-related disputes for the American Arbitration Association, and authored The Club Litigation Book: Keeping Clubs out of Court. She leads the Global Club and Branded Residences group at the law firm of Nelson Mullins Broad and Cassel and can be reached at (561) 866-5700 or via email: michelle.tanzer@nelsonmullins.com
Golf, the Silver Lining of 2020 Most would agree 2020 wasn’t our best year. With COVID-19 and social unrest, we saw our world change and our lives impacted in horrible ways that few could have ever imagined. Even with the hope vaccines may provide, some losses sadly cannot be recovered. Without diminishing this unfortunate reality, 2020 did have a silver lining: there’s been a great resurgence in golf, and some are turning this silver lining into gold. Most, if not all, golf clubs enjoyed a significant increase in rounds played in 2020 and anticipate this increase continuing through early 2021. In fact, some industry reports suggest play was up over 13 percent in 2020 compared to 2019. There are obvious reasons for an “upswing” in golf play, not the least of which is the ability to play while social distancing. However, there are also other factors at play. City dwellers are now seeking refuge in shoulder or suburban areas and are moving closer to golf courses. Also, almost one-third of previously full-time office workers are now working remotely at least a portion of the week, thereby avoiding their daily commutes. Thus, those who may not have had access to golf or time to play for several more years have the access and time needed to play golf right now. Not surprisingly, this increase in play has led to an increase in membership sales velocity. With this unanticipated but welcomed increase in golf memberships, clubs can reload their capital accounts with the dollars they receive from new membership contributions and initiation fees. Nevertheless, for many clubs, membership sales trigger the obligation to repay all or a portion of this much-needed capital to re-
98
BOARDROOM | MARCH / APRIL 2021
signed members on the “refund list.” Therefore, clubs are seeking creative ways to avoid or significantly reduce these refund obligations so they can use the influx of cash to pay for their capital needs. In the process, many clubs ask whether there are legally permissible ways to circumvent the refund obligations. The answer is absolutely yes but there are pitfalls if not done properly. For example, one club simply offered a “new category” of membership that did not have a refundable component and attempted to argue that sales of the non-refundable membership type did not trigger any refund obligation. Another club amended its bylaws to provide for no refunds without considering the legally binding contractual rights of the affected members stemming from the enforceable membership agreement the club had entered into with those members. Similarly, one club tried to unilaterally adjust the redemption ratio from 3:1 to 5:1 to delay the club’s obligation to issue refunds. In each of these cases, disputes with members arose and the club ultimately had liability to the resigned members. In contrast, some clubs evaluated their governing documents, including the provisions contained in the executed membership agreements and applicable law, and devised programs to legally reduce their refund obligations. In fact, several clubs successfully instituted permissible alternatives, such as voluntary buy-back options for a fraction of the refund obligations, capital assessment programs that legally offset refund obligations of current members, and refund list exchange offerings that enabled the clubs to retain the capital in the future rather than have to pay back resigned members. There are other offerings that can reduce the amounts owed to former members and help clubs achieve the ultimate goal of redirecting those amounts to their capital project funds. For golf clubs in 2021, the secret to turning the silver lining of 2020 into a pot of gold may simply be to understand the options available and implement them wisely. B R
Does it make a difference if you are a manager at a Distinguished Club? Of course, it does! Both general managers and department heads of clubs who have earned Distinguished Club status are widely recognized by Kopplin Kuebler & Wallace and boards as leaders at providing a great Member Experience. It makes you a very strong candidate for leading clubs searching for top club management.
Executive Search Firm Leaders for the Private Club Industry Kopplin Kuebler & Wallace Partners pictured left-right: Dick Kopplin, Tom Wallace and Kurt Kuebler
The only merit-based award program that recognizes private clubs and their management for outstanding delivery of exceptional Member Experience. www.distinguishedclubs.com
from Green Committee | 64
ming to address these issues. We live in a desert and must be good stewards of our natural resources. Golf courses get a bad reputation, but we are the most efficient users of water compared to things like HOAs, community parks, businesses and homeowners. Our courses are equipped with a state-of-the-art weather station to measure rainfall, humidity and other weather data to help determine the proper amount of irrigation water to put on the course, so as not to waste that precious resource. Each individual sprinkler head can be adjusted daily based on fluctuating water needs. OVERSEED
Located in the Southwest, our members enjoy golf yearround … and want to see green no matter the season. This means we undergo overseed nearly every year, which is extremely hard on our base Bermuda grass. Basically, as soon as the summer Bermuda grass is strong and vibrant, we scalp it almost to the dirt and plant Ryegrass. It’s a constant cycle that injures the base turf and requires the team to shift how we care for and maintain the course as each type of grass needs different things in terms of water and fertilization to thrive. This continuous transition between the two types of grasses is one of the largest challenges we face. There are only about four months out of the year that we are from Technology Perspective | 84
members. So right from the beginning three teams are working on the club’s behalf: forensics, negotiating and public relations/legal. Day 6: The negotiating team settles the ransom amount for a low six figures – still a considerable amount. Day 7: The club wires the ransom amount, in Bitcoin, to the threat actors. Once the funds are received, the encryption key is immediately provided. Days 8-11: The MSP spends the next four days decrypting the club’s files, rebuilding the servers, decrypting and restoring the backups, adding intrusion detection software to the network, and restoring operations. Lessons learned 1. Don’t think for a moment that private clubs are not ransomware targets. During my recent technology education sessions, when I ask for a show of hands from clubs
102
BOARDROOM | MARCH / APRIL 2021
maintaining turf, the other eight months are spent either growing it in or eliminating it, scalping, overseeding, transitioning and nurturing into recovery. I like to joke that for those four months, when the grasses are at their peak and courses are lush and green, we are the smartest staff members on the property. Members think we’re heroes. The rest of the year … well, let’s just say we are apparently not so smart. This year, to improve long-term course conditions, Superstition has made the tough decision to not overseed tee tops, greens or any of the rough – in some cases these are areas that have been overseeded every single year. It’s a huge change for our members, especially the greens, but we believe it’s a necessary evil to maintain the future health of the turf. It’s a leap of faith and I’m grateful for the support we have from the club’s owners and the understanding of our members. At the end of the day, our goal is to provide members with a consistent, high-quality playing surface. As the course continues to age, the challenges we face will continue to change. And we’ll adjust. Just as we have for the past 23 years. B R
that have had a network breach in the recent past, about a quarter of the participants raise their hands. 2. If you don’t already have cyber liability insurance, get some – from an experienced and reliable carrier. The club shared with us that their annual cyber insurance premium is a tiny fraction of the ransom amount. Not a bad investment to have their system back up and running in 11 days – not to mention saving almost the entire amount of the ransom payment. Note: It’s not uncommon to hear stories of clubs’ systems being down for months as they muddle through the forensics, negotiating and restoration process on their own. 3. Get serious about protecting your club’s network. Make sure your network is being constantly monitored for intrusions. Train your users to recognize attack ploys, such as phishing emails. Outsource your backups to a hardened data center to avoid having them encrypted by a threat actor. Schedule an annual systems security review with a qualified provider. B R
from Boardroom Basics and Beyond | 18
thinking and a proactive, strategic approach, city clubs can diversify, evolve and reinvent their way to success. Now is the time to reimage the club and recognize that members need connectivity to the club and each other, even if it’s virtual. The Union League and the University Club of Milwaukee are great examples of city clubs that had average facilities but used unique creativity to provide vibrant, eclectic offerings and merger opportunities. Both clubs have dramatically lowered their average age of members and built a financially sustainable future by proactively evolving and diversifying their offerings. We believe city clubs will be most successful by recognizing that the club environment is dramatically different when members are not walking through the doors. Many city clubs were founded on intellectual stimulation, athletics and community, which should be the foundation for future decisions. Bringing the club to the members where they want it requires acquiring satellite locations in the suburbs, other parts of the city, or in popular vacation spots. It means establishing merger opportunities and creatively using current spaces to provide membership value and new experiences. City club leaders must be bold, resourceful and forward thinking. Experimenting with new ideas and creating new programs is the path to the future. Creating outside restaurants, using food trucks, implementing a “heat and serve” takeout program, converting parking garages to outdoor fitness spaces, and offering numerous online classes such as cooking classes, cheese tastings and exercise competitions takes the club outside the four walls to members’ homes. Inside the four walls of the club may look different as well. Perhaps city clubs find success in converting overnight guest rooms to private offices for members. The future is bright for city clubs that adapt to today’s changing demographics. It requires great communication between all stakeholders (boards, management, staff and members) and constant planning and evolution. City clubs that employ strategic thinking have supportive boards and strive to create membership value are the clubs that will thrive, not just survive.
The best chance of prospering stems from a management team that has taken advantage of the time away from “business as usual” and has developed new financial strategies, planned strategic initiatives and is acquiring new assets. This is the time to plan and prepare for reopening to grow for the future. Management and the board must look to the future together and make hard choices to fulfill the club’s mission and assure long-term sustainability. Not all crises are bad. The pandemic has presented a transformational time for city clubs. Plans, programs, amenities and activities successful in the past will look different in the future. Mission-driven city clubs will look back on this pivotal time as a “wake up” call that they need to evolve to ever-changing circumstances constantly. BR Richard Kopplin, Kurt D. Kuebler, CCM & Thomas B. Wallace III, CCM, CCE, ECM are principals with Kopplin Kuebler & Wallace. www.kopplinandkuebler.com from Membership Musings | 52
Blackrock, Inc., a major asset management firm, sent letters to companies on the Russell 1000 Index with few women on their boards asking them to justify this lack of diversity. In 2018, California became the first state to pass a law mandating all public companies with executive offices in the state to have women represented on their boards by the end of 2019. And on Dec. 1, 2020, the Nasdaq Stock Market filed a proposal with the SEC to require all companies that list on its exchange to annually report their board diversity statistics and/or reasons why they do not have at least two diverse board members. The proposal elevated the issue of board diversity to a new level for all organizations – including private clubs. The DEI train has left the station and the club car does not want to be the caboose. Worse yet, it does not want to be left back at the station. Your bottom line will thank you. B R
MARCH / APRIL 2021 | BOARDROOM
103
GREGG PATTERSON Gregg Patterson is president, Tribal Magic, creators of WOW, builders of community. He can be reached at: GJPAir@aol.com
TRIBAL MAGIC
Researching Rude If you’re in hospitality, if you’re in the people business, you’ve encountered rude. Every day. You’ve seen rude, felt rude, absorbed rude and become fluent in rude. The rude irritate and annoy — and their barbs sting. You grizzle. You bite your lip. You wake up at 3 a.m. in a sweat, remember the rude, relive their rudeness and scream in frustration knowing you’ve got to suck it up and shut up — because rude is part of the biz. Every club manager has experienced the rude — lots. In the parking lot the rude will give you a dismissive look and chuckle at your choice of shoes and socks. In the lobby the rude will snicker and laugh at your tight trousers and spreading waistline. In the pro shop the rude will laugh at your east coast twang and imitate it with a chuckle. In the dining room the rude will walk by you without a glance, eyes focused on napkin folds and salt shakers. In the card room the bridge players will twitter about your gray hair and suggest a beautician they know “who does hair color right.” And in the locker room a group of chuckling notso-scratch-golfers will go silent and give you the “you ain’t one of us” look as you scoot by with a forced smile and strained hello. Grrrrrrrrrrrrrrrrrrrr…. And finally, in a rage at their rudeness, you say, “to hell with the job” and give each of these creatures a verbal smack in the mouth, laugh at their pretense, stomp on their egos and exit with an obscenity-laced farewell and goodbye!!! In your dreams…. WHY RUDE
There are lots of reasons why the rude are rude but at the root of their rudeness is an anti-social “something” lurking deep in their psyches. Dealing with the rude — and preventing our own rudeness from surfacing — requires an understanding of the “why” behind their rudeness. There are different types of rude. Some people are consciously rude. Others are unconsciously rude. Some people are often rude, and others are seldom rude. Some people deliver rudeness that’s small and forgivable, while others deliver rudeness that’s big, evil and memorable. Genes affect rudeness. Some people are born already rude and spend their lives polishing the rude they’ve already got. Others are born inclined to be rude and work hard on 104
BOARDROOM | MARCH / APRIL 2021
becoming truly and outrageously rude. And others are born rude adverse and do what they can to constrain what rudeness they’ve got with values, manners and empathy. Rudeness flourishes when: • The Rude One is a weak, sniveling pile of nothingness and failure — and they try to hide their “lowness” by doing rude. • The Rude One has an ego that’s bigger than the goods they deliver — and they elevate themselves by diminishing others. • The Rude One feels ignored by the crowd, goes public with their rudeness and basks in the attention their rudeness delivers. • The Rude One has absorbed a lifetime of rudeness and has chosen to purge their pain by delivering rudeness to others. • The Rude One lacks empathy and fails to appreciate the sting that their rudeness delivers. • The Rude One’s “tribe” celebrates The Rude One’s rudeness with a slap on the back and a hearty ha-ha for having given the target a big slice of rude. • And — rudeness flourishes when those who observe the rudeness say nothing to The Rude One. Hospitality people need to know why rude people are rude to avoid delivering rudeness themselves. TACTICS OF THE RUDE
Hospitality professionals know the tactics The Rude One uses to deliver true rudeness. Avoiding eye contact. Giving the dismissive, disdainful “you are worthless” look. Resting bad boy face. Talking too loudly. Talking too often. Giving the silent treatment. Actively not listening. Responding with eye rolls, sighs, giggles or chuckles. Interrupting. Avoiding handshakes, fist bumps and physical contact. Crushing the hand during a handshake. Nodding off during meetings. Texting while listening. Putting their cell phone on speaker. Not responding to emails, phone calls or notes. Commenting on dress, grooming or behavior. Being insincere while agreeing, complimenting or remarking. And — never apologizing for their rudeness.
Knowing the tactics, the rude use to be rude will prepare the target for the rudeness they’ll experience — and help educate others on how not to be rude. CATEGORIZING THE RUDE
Everyone categorizes The Rude Ones with names that are memorable and personal — and funny. Because funny takes the sting out of rudeness. Imagine a comedy skit with each of these rude ones as actors. • The “I’m being rude and don’t even know I’m being rude” rude. • The “I know I’m being rude and relish the rudeness I’m delivering” rude. • The “Those rules are for the little people and not me” rude. • The “I tell it like it is and I don’t care what you think of what I’m saying or how I’m saying it” rude. • The “I want to be the center of attention so I’m going to be loud and obnoxious” rude. • The “I’ll interrupt whenever I want” rude. • The “I’ll flaunt the rules, laugh in your face and dare you to say something” rude. • The “I’m going to give you my just-ate-a-lemon look while listening to you speak” rude. • The “I’m going to look at my email, answer my phone and send text messages regardless of who I’m with or what we’re doing” rude. • The “I’ll never look you in the eye and speak when I walk by” rude. • The “I’m proud to be rude and will tell all my friends how rude I was” rude. • The “I’m a diva, special, elite, talented and exceptional and you’re a nobody” rude. • The “We’re in the in-group and you ain’t” rude. • The “I’m going to embarrass you with my sarcastic comments” rude. Categorize the rude, laugh at their rudeness and teach others to behave differently than The Rude Ones. THE DON’TS OF RUDE
Dealing with the rude ain’t easy. You’ll want to bite — and can’t. If you want to keep your job, keep the peace and keep your sanity, avoid the don’ts. Don’t hang around rude people — because they’ll make you rude. Don’t hire rude people — because they’ll infect your team with rudeness. Don’t be rude to the rude — because it’ll provoke more rudeness. Don’t avoid the rude after experiencing their rudeness — because they’ll consider your avoidance a victory. And the biggest of don’ts — don’t “do rude” because it’ll inspire rudeness in others.
PURGING RUDE
Rudeness is remembered and irritates long after the rudeness was delivered. The demons need purging. Exercise — to prevent brewing on the rudeness experienced. Debrief — discuss and then document the rudeness experienced in The Book of Rude. Ponder — discuss a single rude behavior previously documented in The Book of Rude. Teach — give others examples of and insights into rudeness. Publish — write a column in the newsletter on “rude encounters” that is funny, upbeat, memorable and pithy. Legislate — generate house rules that identify the principles and the tactics for proper rude-less behavior. Confront — let the rude know they’ve been rude and guide them toward “less rude.” Identify, discuss, digest, document, teach and purge — rude. PREPARE FOR THE RUDE
If you’re in the people business, you’ll experience rude — lots. Best you prepare. Know rude. Anticipate rude. Avoid being rude. Ponder rude. Teach rude. Purge rude. And enjoy the journey. B R
Thinking of replacing your club Thinking of replacing club management software?your Think again! management software? Think again! If your club accounting and POS software is 7, 10 or even 15 years old, you may be thinking of making a change. So were many of our club clients, who hired us to help them make that decision. Surprise! After a thorough needs assessment, 7 of 10 clubs decided to retain and improve their existing software. Money saved. Business interruption avoided. To learn more, contact us. 400+ CLUB CLIENTS - 30 YEARS OF EXPERIENCE.
(561) 281-0459 • bboothe@boothegroup.com (561) 281-0459 • bboothe@boothegroup.com www.boothegroup.com
www.boothegroup.com
MARCH / APRIL 2021 | BOARDROOM
105
from Publisher’s Perspective | 10
presents challenges for the club industry and individual managers, it’s a stretch to say it sets them up to fail. “First, most private clubs are successful and many of them have been around for decades, if not hundreds of years. Secondly, in McMahon surveys, 89 percent of members indicate they are satisfied/very satisfied with the member experience. There are a lot of hospitality businesses that would like to have that high a level of customer satisfaction. If the governance and management system predestined failure, you would not have this level of sustainability or satisfaction,” Vain added. “One challenge we face as leaders is the ability to get the right team on the bus,” said Rob Martin, general manager, COO, Wycliffe Country Club in Wellington, FL. “This means having a nominating committee or search process that recruits the most qualified volunteer leadership to serve the community in the best interests of all members. The other challenge is the subscription to the governance standards created in your board policy manual. Too many leaders get trapped by micromanagement, personal agendas, or poor board behavior that the GM takes the fall for,” Martin added. “Finally, you must activate your action plan to complete your strategic plan and goals set forth. All these elements are challenges to overcome and should be supported by an outside consultant to facilitate the process and establish a synergistic governance relationship between the board and management.” So, the question is: Does a governance structure of a volunteer board of directors operating in tandem contribute to a GM’s failure? “This model certainly presents roadblocks to overcome in the process since most board members have good intentions but are faced with real issues to tackle and could damage personal friendships, upset neighbors, etc.,” explained Martin. “This conflict creates a more pressing need to get the right volunteers in the program and operate with a succession plan just like any other big business would require. Board orientation and training are essential and should be mandatory.” DeLozier suggests incongruent boardroom leadership threatens sound and proper strategic planning in many cases. “The governance structure in some clubs represents an uphill climb for managers who are either inexperienced, inexpert, or simply unable to influence the club’s culture. Secondly, continuity of purpose becomes difficult for many managers to sustain when board leadership is not consistent. These two factors, sometimes, create a club culture that disables effective performance,” DeLozier added. “Management thinkers Rummler and Brache say, ‘If you put a good performer against a bad system, the system will win almost every time.’ “Typically, servant leaders on club boards mean well. Sometimes, club leaders lose their way or become caught up in internecine rivalries that prove to be a disservice to their fellow club members. In some clubs, the manager alone cannot overcome unsavory or incompetent leadership. The manager’s success reflects the board’s success,” DeLozier stated. While the volunteer board, paid management system may cause “some heartburn or angst from time to time (it certainly demands a high level of 106
BOARDROOM | MARCH / APRIL 2021
emotional intelligence), it doesn’t lead to failure,” Vain added. “It’s vital that the manager develop a partnership with their board. That they collectively adopt best practices around board nominations and elections, identifying and grooming talent, that they have effective orientations and succession plans. They must create a system based on an open exchange of information, one that values education and data, and they must establish clear rules of the road for directors, committee members and management. Ultimately, they need to define and execute a strategy,” the McMahon president stressed. Wycliffe Country Club’s Martin says bad board behavior can ruin a club’s reputation overnight, whereas it takes years to build up a strong reputation in the marketplace. Incorporating best practices can help alleviate this possibility. “This includes incorporating a code of conduct into your club’s board policy manual as well as empowering your board president to be the sole spokesperson for the board to have a unified message tied directly to your communication plan.” Martin said this has been particularly true during the COVID-19 pandemic. “We have found great success throughout the pandemic by sending joint messages from the president and GM/COO. This approach has instilled a unified front to the membership in dealing with the COVID-19 crisis and the proactive measures taken by creating value in a safe environment for our membership.” Still, if there’s a lack of collaborative governance, a board’s attitude and behavior can contribute to a particular club’s failings. “If the board does not view the manager as their partner (the COO/GM model), then the whole system is in trouble. They must welcome and respect the manager’s opinion and empower them to operate the club,” Vain added. “On the other hand, the manager must not leave the door open to micromanagement. Most overreach by boards is invited. They (board members) don’t set out to run ➤
from Innovative ideas | 96
Excitement is tangible as U.S. presidents, Heads of state from other countries, moonwalkers, and some of the wealthiest people on earth fill a room, mingling with humble scientists and upand-comers. The members present at the dinner are noteworthy, but the food stands as the star attraction in the already impressive night. The menu is made to reflect the shared love of all the attendees - trying something new. Attendees find interesting, bizarre and extraordinary cuisine from all sorts of diverse places. Many different insects, as well as invasive creatures, have been served. “Although it has its roots in reality, it is slightly tongue in cheek these days,” says Wiese. “At this point, I can’t even say anything is odd - tarantulas, cockroaches, scorpions, and so many others.” The Explorer’s Dinner is a gathering of the most prestigious adventurers, explorers and scientists alike. Amazon’s Jeff Bezos was even photographed at one eating an invasive iguana a few years back. It is more than just a feast, though. It’s a homecoming for many as a fair number of members live outside New York City. The highly anticipated event provides a good excuse for a return to the Big Apple. The longer it continues, the hotter the ticket becomes. Because of this, when the Explorer’s Dinner becomes out of reach for hopeful attendees, upset at the opportunity they have missed. And in this crowd, celebrity status will only get you so far. “I remember one year, an agent for the actor Will Smith called to get tickets and it was sold out,” Wiese reminisces. “In our world, unless you’re Buzz Aldrin or Neil Armstrong, it doesn’t really matter.” B R
888-324-5020
inveSTmenT OPPORTUniTieS golf is nature’s outdoor social distancing sport
Lake Wales Country Club Pending
Stone Creek Golf Club
Sale FL Lake Wales,
Valdosta, GA (1-75 Frontage)
Beautiful Upscale Gated-Community, Golf Club Open to the Public
Confidential Listing
Oakwood Golf Club Pending
LowCountry, SC
Tot Hill Farm Golf Club
Fancy Gap, VA
Sale FL Lake Wales,
Skyland Lakes Golf Club
Asheboro, NC 1 hr from Pinehurst & Lots & Land Charlotte Additional Motivated Owners 1st Original Mike Strantz Design
in the Heart of Piedmont Triangle of north Carolina Oak valley Golf Club
Private Listing in North Georgia with or without real estate Nicklaus Design 18-Hole Golf Course near shopping and college gateway to the N GA Mountains
Farmington - Arnold Palmer Design (near Winston-Salem)
meadowlands Golf Club
Winston-Salem - Hale irwin Design additional real estate available
3 Smith Mountain Lake Virginia Golf Properties LD Club • Water’s Edge Country SO 0 | Penhook /30/2 • The Waterfront Country Club | Moneta Closed 12 • The Westlake Golf and Country Club | Hardy
HildaWAllen.com
VA Lic#0225100045, 0226010231; FL Lic#: BK3036361, CQ1019764, SC Lic #1334, NC Lic#: 193434, C14312; GA Lic#46193, 16764
MARCH / APRIL 2021 | BOARDROOM
107
from Publisher’s Perspective | 106
the club. They may not know the difference, which is where continuing education and orientations come in. “More often, they sense weakness and as successful Type-A people, they are not going to sit on the sidelines in the face of poor performance or less than transparent communication. The board and management must partner in the development of a clear strategy and then each party must execute their end of the deal,” Vain emphasized. Certainly, other factors, such as the club culture, personality differences, role conflicts etc., can influence and impact the general manager’s work. “Peter Drucker famously said, ‘Culture eats strategy for breakfast.’ In my experience, culture within any given club is governance. The greatest threat to most clubs and their managers is the club’s culture…if it is poor. The manager’s ability to overcome these characteristics influences their eventual success. The presence of a properly prepared and researched strategic plan represents the best insurance policy against the other threats you have identified,” DeLozier expressed. “Culture is huge, and boards and managers must understand and respect it. There’s always a way to blend governance and management systems to fit the culture,” Vain added. Martin added that “cultural values play a major factor in the equation as the turnover issue can be attributed to a ‘wrong fit’ in the initial placement process also. “There are times when the wrong search committee is formed or recruiting firm retained who may not understand the cultural elements of the club, therefore creating a difficult transition for that new manager.” The general manager’s turnover isn’t quite so cut and dried for some industry experts, especially because of the difference in governance style and, in the end, its effectiveness. “I think general managers are set up to fail in a wide range of ways, and it is clear many do every year,” opined Lee Hoke, professor of economics, Sykes College of Business, University of Tampa, and three-time past president of Buckhorn Springs Golf and Country Club. Hoke’s viewpoint hinges on three aspects…governance, pricing strategy, and low productivity and high food and beverage costs. Governance: The typical country club board is made up of nine members serving three-year terms. As a consequence, three new board members arrive each year. The board’s role is strategic. That is, these nine are charged with setting the strategic direction of the club. They are supposed to set the mission, goals and strategies for the club, as well as to evaluate how well the manager and his staff have implemented the strategies and the outcome of the strategies. Their job involves the highest level of thinking in the organization. The problem is obvious and well-documented. The nine people who make decisions are unlikely to have the information necessary to make an informed decision. They are overseeing and evaluating the work of the manager, who in most cases will be a seasoned executive in the industry. Most managers know the business from the bottom up, starting as a busboy in food and beverage or working the golf pro shop. On the other hand, the board member knows almost nothing and doesn’t know what 108
BOARDROOM | MARCH / APRIL 2021
they don’t know. To make matters worse, the member may have run for the board to promote an agenda about a specific area or problem in the club. In the worst case, the board member is running because they were offended when some club management members insisted they follow club rules. Now they’re out to get somebody. Pricing strategy: In 1971, an economist named Walter Oi published an article in the Quarterly Journal of Economics, “A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly.” The article laid out the pricing strategy (now called two-part pricing) for Disneyland, Costco, Sam’s, Amazon, and all the major cell phone carriers. It took Sprint, T-Mobile, Verizon and AT&T awhile, but they all realized that the right price for texts and calls was zero. Oi explained that companies with two prices should set the user fee equal to the cost and make all their profit in the monthly fee. Costco got it and makes its profit in the annual fee. Bezos goes to the bank on his Prime members. Imagine what would happen to Costco if it tried to charge a price for its meats equal to or above the typical price in the grocery store. What would happen if T-Mobile began to charge a quarter for every text or phone call? All of these businesses thrive based on the recurring income stream from monthly or annual dues. Clearly, Costco’s leadership and even an entry-level employee must understand that raising the prices for the products they sell would have longterm devastating consequences. Clubs charge two-part prices. How many board members understand the pricing strategy? Yet, a mistake at this level can make it impossible for the manager to succeed. The solution here is to educate the board on the two-part price and ensure it is implemented successfully. Low productivity and high food and beverage costs: When a country club builds a 300-person grand ballroom and a kitchen big enough to support it, the stage is set for a problem the manager did not
create and can’t solve. Most of the time, the volume of food and beverage sales would be efficiently served by a food truck with one employee. By analogy, an Airbus 380 has a capacity of over 800 while a Superjet’s capacity is less than 100. Before the airline buys a plane for a route, the choice is driven by the number of passengers expected. A mistake made at the beginning cannot be corrected. No amount of effort or creativity on the part of the pilot and crew can fix this mismatch. Under the circumstances, the club is likely to generate $1.40 worth of cost for every dollar’s worth of revenue and, no doubt, members and board members will blame the problem on the manager, and some member will swear that his brother-in-law who ran a Denny’s could fix the problem if only the board would hire him. This is a circumstance where the manager is set up to fail. The board could help by the addition of a portion of the F&B operation which operates at low volume, or it finds a way to increase volume through marketing social members. The manager was set up to fail by the architect who designed the building.
The First and the Only Association specifically for the education and advancement of Club Catering and Event Professionals in the Private Club Industry to elevate the Member Experience
Membership Benefits
Education for Maximizing both Member Event Experience and Private Event Revenues and Experience • Webinars • Coaching and Resources Monthly Educational Newsletters • Networking Events Club Catering & Event Professional Certification Program COVID Response Resources and Documents Search and Placement Services for the Catering & Event Positions
Save the Date!
ACCP 2021 VIRTUAL Conference • August 29-30, 2021 •
LOCATION: YOUR COMPUTER! “I came back completely renewed and motivated! I can’t wait to implement all of the ideas” -Tricia Cummings, Blue Hill Country Club “This conference was one of the most incredible experiences I have ever had! I cannot wait until next year!! -Olivia Pollock, Great Oaks Country Club “This conference really gave me a fire in my belly to come back to my club and do more...I want to share that inspiration with my team and hope that we can take our club to the next level!” -Amanda McCleery, Ballantyne Country Club Educating the Club Industry. . . One Catering Director at a Time
www.TheACCP.com
Contact: Lynne LaFond DeLuca Lynne@TheACCP.com
SMOOTHLY OPERATING PROCESS
Still, some factors can contribute to a smoothly operating governance process. “First, you need to have a roadmap with your strategic plan,” emphasized Wycliffe’s Martin. “Having the board and management following one mission, vision and set of core values will give you a baseline to start. Next, you need a board policy manual covering roles and responsibilities for the board and management to create clarity for the operation. “Other areas of importance are the communication to the board and membership, and the GM/COO must be exceptional with this skill set,” he added. “The board deliberates as many and governs as one,” advised Fred Laughlin at GGA Partners. “As such, board members must honor the confidentiality of the boardroom and attend to their fiduciary duties at the highest level. If one wants a top-performing board, all involved must commit themselves to excellence in governance and servant leadership,” DeLozier added. McMahon’s Vain suggested, “Every club can transform their leadership by adopting industry-proven best practices, including:” • Continually educating stakeholders regarding best practices and important societal trends impacting their club
➤ MARCH / APRIL 2021 | BOARDROOM
109
from Publisher’s Perspective | 109
• Conducting mandatory and comprehensive orientations for all stakeholders • Adopting a fact-based, private club business model and related financial best practices and key performance indicators • Embracing data-driven leadership rooted in strong governance principles and transparent communication • Developing and maintaining an effective strategic plan • Ensuring seamless transitions of boards, committees and senior staff. And we leave the final thoughts to Martin, GM at Wycliffe Country Club in Wellington, FL. “Surround yourself with the right team of professionals. You must lead at a strategic level, and this requires having a strong team around you. Secondly, I reiterate the need for communication skills and to balance the right presence in the operation. Lastly, you must be a visionary leader with the ability to constantly adapt and innovate your service product to the membership by creating exceptional value for the dues paid.” PUBLISHER’S FINAL THOUGHTS
I would like to focus on how the GM/COO can succeed and have a long successful career at the same club, and there are several things general managers can do to help that become a reality. It’s vitally important that clubs develop a strategic plan, a plan based on a minimum of five years, but which can be adapted when reviewed each year – a plan adapted as necessary by the strategic planning committee and the board, but not with changes based on the personal agendas of board members. Board members should ask the GM/COO how they can help the GM/COO execute the strategic plan so that they are operating from the same standpoint of understanding. Executing the strategic plan should not be done in isolation but as a collaborative effort between the GM and the club’s board of directors. Collaborative governance is a necessity. A club should ensure that board members go through proper orientation and training for 501(c)(7) private clubs. Just because your board president thinks they have lots of board experience doesn’t mean the nine other board members do. The same goes for committee members that work with the committee chair. In some clubs, there are often 80 different people on the board and committees. They all need training – a 501(c)(7) board orientation and an understanding of their role and fiduciary responsibilities. I believe less than five percent of board members today truly understand the differences between 501(c)(7) and all other types of boards. If a GM/COO is to succeed, the board must stay away from micromanaging the club’s management. That’s what the GM/COO is paid to do. The board’s mandate is to establish policies and procedures for the club while leaving the day-to-day operation to the general manager. The board’s involvement (micromanagement) in the daily operations is a scourge and undermines the GM.
110
BOARDROOM | MARCH / APRIL 2021
There’s a need for clarity. Communication between the GM and the board is critical. Nothing can hurt the credibility of a GM or a board member more than not being clear in articulating their positions. Board members also need to practice active listening with the GM and other board and committee members. Listen to what’s been said – not just hearing words that have little impact or validity. Don’t leave your committee members in the dark because one day soon, one or two of them will be on the board and eventually the club’s president. Start day one with an orientation of 501(c)(7) issues, roles and responsibilities, diversity and sexual harassment training, and, of course, fiduciary responsibilities. All boards and committee members trained with the same information can help the GM/COO and the club succeed. Select your board nominees carefully. Search out club members who can turn out to be your best board members, who will help deal with specific issues, and possess the temperament and experience to be qualified board members. Potential board members should possess these qualifications: • Be creative problem solvers • Be strategic thinkers • Encourage diversity • Possess marketing and sales experience • Be respected leaders, influencers, or advocates • Have industry, product, and financial and legal experience • Be great communicators • Lack a personal agenda. I would strongly recommend that your board participate in a board orientation program. Please go to boardroominstitute. com and sign up. You must Replace Emotion with Fact. At least, that’s the way I see it. BR John G. Fornaro, publisher
Jan/Feb, May/June, Sept/Oct
1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-562-5377 • Fax: 1-800-562-5399
COUNTRY CLUB TECHNOLOGY PARTNERS 1/4 Page 3 1/2” x 4 3/4 Color • Technology Master Planning
Technology Planning for Private Clubs
Wood seating specialist with custom capabilities.
The Boardroom 1 (Indesign doc.)
Club Technology Report Cards • Cost Reduction / Audits • Hosted IT Solutions • Surveillance Cameras • Cyber Security Analysis •
www.cctechplan.com |
contact: noel@cctechplan.com
www.sttimothychair.com P 828.322.7125 F 828.322.9156
MARCH / APRIL 2021 | BOARDROOM
111
CREATIVE + STRATEGIC I N T E R I O R D E S I G N
239.596.8551 | wegmandesigngroup.com ADDISON RESERVE
XHIBTZ business cards.qxp_Layout 1 8/25/17 9:32 AM Page 1
CLOCKS BY V E R D I N www.verdin.com | 800-543-0488
Steve Berlin Steve Berlin
954.614.1505 xhibtz1@xhibtz.com www.xhibtz.com
ADDISON RESERVE
WE HAVE A FULL RANGE OF PRODUCTS TO SATISFY ALL YOUR NEEDS POOL FURNITURE • BEACH FURNITURE • UMBRELLAS • CABANAS • PATIO FURNITURE • CUSTOM CUSHIONS
2012 - 2020
(954) 614-1505 | STEVE@XHIBTZ.COM | WWW.XHIBTZ.COM
BOARDROOM MAGAZINE ADVERTISING INDEX ACCP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Golf Property Analysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Addison Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
GSI Executive Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Ambassador Uniform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
High-End Uniforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Angela Grande . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Hilda Allen Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
APCD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 - 93
HINT | Harris Interiors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Big John Grills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Jonas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Bobby Jones Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Kopplin Kuebler & Wallace ������������������������������������������������������������������������������5 & 43
Boothe Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
MAI | Marsh & Associates ���������������������������������������������������������������������������������������37
Bozeman Club & Corporate interiors �������������������������������������������������������������������41
McMahon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
C2 Limited Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
MembersFirst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Castor Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
MemberText . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Chambers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Nelson Mullins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
ClubCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 – 71
Northstar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
ClubTec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Peacock + Lewis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Clubwise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
PGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Club Design Associates �������������������������������������������������������������������������������������������33
PHX Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Concert Golf Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Country Club Technology Partners ���������������������������������������������������������������������� 111
Proform Matting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Creative Golf Marketing �����������������������������������������������������������������������������������������19
Rogers McCagg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
CSR Data Privacy Authority ���������������������������������������������������������������������������������� 111
RSM US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
BoardRoom’s Distinguished Clubs ��������������������������������������������������� 99, 100 & 101
Salsbury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Emersa Waterbox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
St. Timothy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Ethos Club & Leisure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Strategic Club Solutions ���������������������������������������������������������������������������������������� 45
Eustis Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Studio JBD & Jefferson Group Architecture ������������������������������������������������������ 39
FOOD-TRAK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Troon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Forbes Travel Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
USPTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Gasser Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Videobolt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
GCSAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Wausau Tile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-27
Gecko Hospitality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
WebTec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Golf Business Network ������������������������������������������������������������������������������������������ 47
XHIBTZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Golf Maintenance Solutions ������������������������������������������������������������������������������ 109
BOARDROOM MAGAZINE COUNTRY CLUB INDEX Nancy Berkley, green committee and marketing committee, Frenchman’s Creek Beach & Country Club, Palm Beach Gardens, FL
Club, Gold Canyon, AZ
Bruce Behrens, President, Orchid Island Golf & Beach Club, Vero Beach, FL
Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club
Susan Brenner, President, Wycliffe Golf & Country Club, Wellington, FL
Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI
Martin P. Brunk, President, Baltimore Country Club, Baltimore, MD
Martis Camp Lodge and Golf Course, Truckee, CA
Jarrett Chirico, USPTA,PTR, PPTA,PPR, director of racquets, Baltimore Country Daniel Perez, New York Athletic Club Club, Baltimore, MD Robert A. Sereci, CCM, general manager, Medinah Country Club, Medinah, IL William Choate, President, Charlotte Country Club, Charlotte, NC Roger Simon, general manager, The New York Athletic Club, NY Ken Christian, President, Berkshire Country Club, Reading, PA
The Country Club of Hudson, Hudson, OH
John Dorman, GM, The University Club in New York City
The Kirtland Country Club, Willoughby, OH
Charles Johnson, GM of Detroit Athletic Club, Detroit, MI
Bruce V. Zahn, general manager/COO, La Quinta Country Club, La Quinta, CA
Scott Krout, director of agronomy, Superstition Mountain Golf and Country
114
BOARDROOM | MARCH / APRIL 2021
W W W.JO NAS CLUB .CO M
HELPING CLUBS THRIVE Our Online Ordering platform became a must have in 2020 and has empowered members with the ability to order meals for pickup or delivery, shop online from club retail outlets, and even schedule grocery pickups. Online Ordering is just one way that we are continuing to help clubs thrive in 2021.
Online Ordering
MemberInsight
SkyTab
CRM MetricsFirst
Self Serve Kiosk
Mobile Point of Sale ClubHouse Online®
Multi-time Boardroom Award Winner including:
APRIL 26 – MAY 2, 2021
ROUNDS4RESEARCH.COM
BID BUILD
on a round
a better game.
Club Management Software of the year Business Intelligence Software of the year CRM of the year
1-888-789-9073 | sales@jonasclub.com
PREVIEW the courses to BID on now and support turfgrass research to help sustain the future of golf.
C E L E B R A T I N G 25 Y E A R S O F E D U C A T I N G T H E P R I V A T E C L U B I N D U S T R Y T he Bo ardRo o m m ag az ine
ISSUE 294
|
VOLUME XXV MARCH/APRIL
Vo l um e X X V, Mar c h / A pr il 2 0 2 1
Kitchen Display System 10 | PUBLISHER’S PERSPECTIVE
ARE PRIVATE CLUB GENERAL MANAGERS SET UP TO FAIL?
28 | DESIGN FEATURE
WHAT SHOULD CLUBS FOCUS ON IN 2021?
42 | CLUB FACTS & FIGURES
TRENDS IN THE CLUB INDUSTRY WHERE WILL THE FUTURE TAKE US?
N O R T H S TA R
Kitchen Display System
96-97 | INNOVATIVE IDEAS EXPLORER’S CLUB TUCKER’S POINT GOLF COURSE
• Supercharge Members Dining Experience.
• Go Green with the #1 Kitchen Display System.
• Streamline Kitchen Operations & Improve Service.
• Get Kitchen Analytics and Operational Reporting.
Visit our website to find out more.
DICK KOPPLIN READY FOR RENAISSANCE YEARS COVER PHOTO: Richard M. Kopplin, Partner Kopplin Kuebler & Wallace
www.globalnorthstar.com/KDS