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
DAVE WHITE Dave White is the editor of BoardRoom magazine. If you have comments on this article or suggestions for other topics, please send Dave an email to: dave@boardroommag.com.
EDITOR’S NOTE
Larger Than Life Sometimes we run into that someone larger than life and in the private club industry, Gregg Patterson looms large, alive, animated and involved. A special focused on Patterson, who for 34 years managed The Beach Club of Santa Monica, graces the cover story for our May/June BoardRoom. These tributes, which started with a special about Dick Kopplin of Kopplin Kuebler & Wallace in our March/April BoardRoom, is one of a number we plan to publish during BoardRoom’s 25th Anniversary celebrations this year. “I’m addicted to caffeine and conversation and good conversation is at the very core of Who I Am.” And he’s addicted to bringing Big Happy to the World of Clubdom and does so through his company, Tribal Magic. Instead of managing one club, Patterson travels the world dispensing his thoughts, philosophies, and tips to the boards and members of clubs. It’s a busy life but one which suits the energetic Patterson as he devotes his time to ‘writing and reflecting and expanding my speaking business. All of which, Patterson says, continues to be ‘a Buzz.’ In our cover story, Patterson defines his specialty...social key performance indicators, which are the foundational tactics for a great general manager and an extraordinary private club. And his list of KPIs is long, and his club experiences are a living, learning example for others in the industry. Read on!
n n n
Clubs across the country are constantly seeking ways to improve their bottom lines while becoming more sustainable at the same time. In this issue, two BoardRoom Distinguished Clubs – Blackhawk Country Club, located east of San Francisco in Danville, CA, and Round Hill Country Club in Alamo, CA – have hopped on the bandwagon by initiating multimillion-dollar solar projects. Both clubs anticipate their actions will lower electrical bills and cost savings for clubs as sustainable businesses. They’re examples many other clubs might consider following.
n n n
n n n
Several years ago, when Patterson retired as a general manager, his wife and soulmate, Elaine, in a story published in BoardRoom, outlined her experiences as a club manager’s wife...the trials, tribulations and the good and not-so-good over more than 30 years. Now after several years of being retired herself as a human resources specialist, Elaine gives us insight into what it’s been like for both her and Gregg’s days of retirement and how they prepared for their retirement. It’s as she says, “Each chapter is different and better.” There are takeaways here that can help others as they prepare for their retirement.
BoardRoom this issue also features stories about two personalities being recognized for their work in the private club industry. Rob DeMore, president, Troon Prive’, writes about his colleague Tim Schantz, who is being recognized by BoardRoom with the John Fornaro Impact Award. And Lauren Gordon gives us insight into the illustrious career of Rick Snellinger, a recipient of the BoardRoom Lifetime Achievement Award for 2020. Congrats to both who have done so much for the private club industry. And finally, we continue to recognize the work of the industry top presidents with stories in this issue featuring Andy Greenberg, President, Beach Point Club, Mamaroneck, NY; Anne Lockie, President, The Oaks Club, Osprey, FL; Bob Hill, President, Mountaintop Golf and Lake Club, Cashiers, NC; Dr. Bob Hymes, President, Westwood Country Club, Austin, TX; Denise Kuprionis, President, Kenwood Country Club, Cincinnati, OH, and Joe Gattone, President, Medinah Country Club, Medinah, IL. B R
n n n
Risk for private clubs comes in many forms...member suspensions, employee, tax, governance and often, disputes not covered by insurance. So, what creates liability for a club and how do boards of directors’ face and handle the many risks they face. 4
That’s the topic of John Fornaro’s Publisher’s Perspective. Today issues are often a consequence of poorly thought-out processes usually driven by budgets and cost concerns, says Phil Harvey, president of Preferred Club, a Venture Program company that provides insurance coverage to the private club industry. No question, threats arising from legal concerns, financial health and brand trustworthiness should be on the minds of private club directors. So how do private club reduce their risk and exposure? Fornaro’s Publisher’s Perspective offers some clear-cut answers, including the fact that a board of directors’ education and a board orientation program sits as a top priority.
BOARDROOM | MAY / JUNE 2021
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 Dee Kaplan
Executive Assistant/ Director of Support Joshua Nuzzi
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 Henry DeLozier John G. Fornaro Bonnie J. Knutson Nancy M. Levenburg
Jerry McCoy Kevin F. Reilly Robyn Stowell Frank Vain
Dave White Annette Whittley Ed Yoder
Contributing Writers Nancy Berkley Jarrett Chirico Ron Cichy Michael Crandal Amilcar Davy Rob DeMore Dave Doherty John Embree Lauren Gordon
Steve Graves Philip J. Harvey Larry Hirsh John Komes Robert Krzak Lynne Lafond Deluca Ryan Maione Steve Mona Eric Mott
Elaine Patterson Mike Phelps Greg Pieschala Ted Robinson Corey Saban Steve Schendel Robert A. Sereci Doug Turner Gordon Welch
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 295 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
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
CONTENTS | MAY/JUNE 2021 PUBLISHER’S PERSPECTIVE | 10
PLIGHTS AND INSIGHTS | 12
EXECUTIVE COMMITTEE | 14
CAN INFORMED BOARDS OF DIRECTORS REDUCE RISK?
NON-MEMBER REVENUES (REVISITED)
FITNESS FIRST
BY NANCY M. LEVENBURG
BY FRANK VAIN
BY JOHN G . FOR NAR O
The only certainties in life are death and taxes, says the old, overused cliché. But in the private club industry, there’s a possibility for much more. In today’s litigious society, private clubs also face the real possibility of lawsuits.
If there’s no need to be a member in order to host a “good party” at a private club, why would anyone want to join the club? If you can get all the benefits without any of the monthly dues, dining minimums, what possible motivation would anyone have to become a member?
If private clubs want to join this party, they must continue to push ahead, replacing stuffy with casual, staid with fun and male centricity with a family focus. One of the top opportunities in this transformation is in health and fitness. While this has been an expanding element of the club experience for much of the past decade, we are only getting started.
L AW & LEGISL ATION | 16
BOARDROOM BASICS & BEYOND | 18
GLOBAL PERSPECTIVES | 52
MONEY, MONEY, MONEY, MONEY!
IT ALL STARTS (AND ENDS) AT THE DOOR
YOUR CLUB’S ECONOMIC HEALTH
BY ROBYN STOW ELL
B Y AN N ET T E WH I T T L E Y
BY HENRY DELOZIER
While the country is cautiously optimistic we might turn the corner on COVID-19 sometime soon, the most concerning issues for my clubs have the unifying theme of “money.” Many clubs enjoyed some positive financial developments during COVID-19, even amid challenges.
First impressions count, and they set the tone for everything in life. So why not improve the first impression your members have at your restaurant. When you are evaluating the food and beverage experiences in your restaurant, look no further than your host stand. Most of the fundamental issues with service in a restaurant can be traced back to the door.
The U.S. Environmental Protection Agency defines sustainability as “meeting today’s needs without compromising the ability of future generations to meet their needs.” In that broad context, any discussion of sustainability among a club’s board should also include a focus on economic and fiscal responsibility as well as the physical environment.
MEMBERSHIP MUSINGS | 74
WINNING STRATEGIES | 84
CLUB FACTS & FIGURES | 100
FOR MY NEXT ACT
A BOARD’S STATEMENTS ON ETHICS, CONFLICT OF INTEREST AND CONFIDENTIALITY
AMERICAN RESCUE PLAN WHAT DOES IT MEAN?
BY JERRY MCCOY
Don’t avoid these subjects Stop right now and think. This subject may be boring, but it is critically important. Too many clubs don’t even address these subjects. However, the best-run clubs are all over these issues. Let’s review.
BY BONNIE J. KNUTS ON
Not long ago, I was watching one of my morning go-to financial shows when I heard a guest talking about how we will be “popping in and out” of the education world throughout our lifetime. Maybe it will be to change careers. Projections suggest that today’s college graduates will change jobs at least four times in the first 10 years, while those in the Baby Boomer generation will average 12 different jobs in their lifetimes.
Don’t avoid these subjects Stop right now and think. This subject may be boring, but it is critically important. Too many clubs don’t even address these subjects. However, the best-run clubs are all over these issues. Let’s review.
BY KEVIN F. REILLY & ED YODER
SECTIONS
DEPARTMENTS
ON THE FRONTLINES . . . . . . . . . . . . . . . 46
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
What’s Love Got to Do with It?
How to Attract the Right Golf Employees
By Robert A. Sereci
By Doug Turner
TECHNOLOGY PERSPECTIVES . . . . . . . . 64
Tableside POS Is It Right for Your Club?
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
CASE STUDY . . . . . . . . . . . . . . . . . . . . . . 66
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Advancing Key Club Performance Indicators By Amilcar Davy
By Bill Boothe
McMahon Group
Top Private Club Presidents 2020
By Frank Vain
By Ellery Platts
CASE STUDY . . . . . . . . . . . . . . . . . . . . . . 68
CUL I NA RY & CA TE RI NG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Gecko Hospitality
Top Trending Event Ideas and Avoiding Virtual Event Burnout
By Robert Krzak
By Lynne Lafond Deluca
CASE STUDY . . . . . . . . . . . . . . . . . . . . . . 72
Strategic Club Solutions
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
FEATURE . . . . . . . . . . . . . . . . . . . . . . . . . 80
By Gordon Welch
Have You Had Your Orientation?
A Celebration of Collaboration By John Komes
TE NNI S COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Have You Had Your Orientation?
INNOVATIVE IDEAS . . . . . . . . . . . . . 92-94
By John Embree
By Ellery Platts
CASE STUDY . . . . . . . . . . . . . . . . . . . . . . 99
Proform Matting
NANCY’S CORNER . . . . . . . . . . . . . . . . 101
Introduce More Partnership Formats To Your Club’s Women Golfers By Nancy Berkley
COMMITTEES EXECUTIVE COMMITTEE . . . . . . . . . . . . 34
MEMBERSHIP COMMITTEE . . . . . . . . . . 87
By Michael Crandal
By Ted Robinson
The Only Way a Club President Can Look Good
Recruiting Club Members to Your Membership Marketing Team
EXECUTIVE COMMITTEE . . . . . . . . . . . . 36
MEMBERSHIP COMMITTEE . . . . . . . . . . 88
By Larry Hirsh
By Ryan Maione
Club Culture Wars
EXECUTIVE COMMITTEE . . . . . . . . . . . . 38
Build It and They Will Come By Eric Mott
EXECUTIVE COMMITTEE . . . . . . . . . . . . 40
Digital Onboarding
MEMBERSHIP COMMITTEE . . . . . . . . . . 90
Boredom Saved Golf Courses and Private Clubs in 2020 By Steve Graves
FEATURE . . . . . . . . . . . . . . . . . . 76
The Title of My Book Is ???
MARKETING COMMITTEE . . . . . . . . . . . 91
By Lauren Gordon
EXECUTIVE COMMITTEE . . . . . . . . . . . . 42
By Corey Saban
BoardRoom magazine Lifetime Achievement: Rick Snellinger
By Ron Cichy
Stewardship of Your Golf Course By Greg Pieschala
GREEN COMMITTEE . . . . . . . . . . . . . . . . 96
EXECUTIVE COMMITTEE . . . . . . . . . . . . 44
By Steve Schendel
Is Your Club Ready to Catch the Wave?
GREEN COMMITTEE . . . . . . . . . . . . . . . . 97
EXECUTIVE COMMITTEE . . . . . . . . . . . . 48
By Dave Doherty
By Dave White, editor
John Fornaro Impact Award: Tim Shantz By Rob DeMore
Sustainable Maintenance Facilities
By Steve Mona
California Clubs Drive Savings, Lower Costs
FEATURE . . . . . . . . . . . . . . . . . . 78
Connecting with Members Through Video
MEMBERSHIP COMMITTEE . . . . . . . . . . 86
Let’s Talk Aerification and Money
INSURANCE COMMITTEE . . . . . . . . . . . 102
The Coming Perfect Storm By Philip J. Harvey
What Wealthy People Have in Common RACQUET COMMITTEE . . . . . . . . . . . . 104 By Mike Phelps The Future of Racquets – Part II By Jarrett Chirico
COVER STORY . . . . . . . . . . . . . . 20 Gregg Patterson It’s All About The Social Key Performance Indicators By Dave White, editor
COVER STORY . . . . . . . . . . . . . . 27 Each Chapter Is Different And Better By Elaine Patterson
COVER STORY . . . . . . . . . . . . . . 30 Gregg Patterson A Friend of BoardRoom By John G. Fornaro
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
Can Informed Boards of Directors Reduce Risk? The only certainties in life are death and taxes, says the old, overused cliché. But in the private club industry, there’s a possibility for much more. In today’s litigious society, private clubs also face the real possibility of lawsuits, whether or not it’s between clubs and existing or prospective members, between clubs and suppliers, or anyone else who has felt harmed by the actions of a private club or clubs. Risks also come from: • Member suspensions/terminations • Employee issues • Refunds/resignation lists • Claims regarding governance/operating outside the authority of bylaws • Securities claims • Negligence/accident claims • Losing tax-exempt status, and • Contract disputes, many of which are not covered by insurance.
poses in contrast to private status for legal purposes. If the board fully understands ‘what they are’ in each context, then they can make the appropriate decisions to mitigate their risks appropriately,” she added. Mitchell Stump, CPA, founder of the Club Tax Network and author of the Club Tax Guide, succinctly suggests risk can be caused by “board members believing, ‘We are special. Rules are for others to follow.’ “Board members forgetting that in their respective ultra-successful businesses that placed a lot of money in their pockets, there was a lieutenant following the owners cleaning up the risks the owners said to ignore,” he added. “Private clubs today are governed and directed by an elected board of governors...individuals who possess the directives and concerns of the membership body. Today, issues arise as a consequence of poorly thought-out processes that are normally driven by budget and cost concerns,” explained Phil Harvey, president of Preferred Club, a Venture Program company that provides insurance coverage to the private club industry.
So how do clubs, their boards of directors and members reduce the risk… the exposure? In a nutshell, prevention is the key to 1) controlling costs 2) avoiding liability... Board members need to know what their roles and responsibilities are today. They need a strong educational package based on an orientation program. The question is this: What doesn’t create a liability at a club, especially when you consider all the facts of a private club? “In my opinion, the biggest risk to boards is not knowing the risks and lacking the information or knowledge necessary to identify the risk, assess it and wisely choose among the various options and alternatives,” offered Michelle Tanzer, chair of the global club and branded residences for Nelson Mullins, a law firm in Boca Raton, FL. “Private status is one such risk area. The most important principle of private status is to know the difference between private status for tax pur10
BOARDROOM | MAY / JUNE 2021
“Where boards normally fall short is not consulting early enough to get a consensus of experts in the field or professional support that is readily available to lead their process in the proper direction, ergo professionally supporting their decision going forward. “This substantially reduces liability risk!” stressed Harvey. “Clubs today are being driven by the social environment into becoming everything to everybody. This creates substantial exposure to the internal controlling management and leadership of the organization. Take, for example, the intercity social club that expands to venues such as golf and tennis. SEE PUBLISHER’S PERSPECTIVE | 114
NANCY M. LEVENBURG
PLIGHTS AND INSIGHTS
Nancy Levenburg, PhD, is a recently retired professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, MI. She has published numerous articles in business and professional journals, and has assisted over 200 organizations with strategic planning, marketing strategy, and improving operations. She is the president of Edgewater Consulting and is a member of Spring Lake Country Club in Spring Lake, MI. For more information, contact her at: levenbun@gvsu.edu or (616) 821-5678.
Non-Member Revenues (Revisited) A few years ago, I wrote an article for BoardRoom magazine titled “Non-member Revenue: Does the Club Actually Profit From It?” One point I made in that article was that private clubs often eye revenue from non-members as the panacea for financial woes that have resulted from a declining number of members and decreased member revenues. As a result, many private clubs aggressively woo non-members to host events at their club. In fact, one private club recently posted on Facebook, “We know how to throw a GOOD party – no membership required!” Well, if there’s no need to be a member in order to host a “good party” at a private club, why would anyone in her/his right mind want to pay money to join the club? What possible incentive is there? If you can get all the benefits of private club membership without any of the monthly dues, dining minimums or member assessments needed to improve club facilities (that are increasingly being used by nonmembers), what possible motivation would anyone have to become a member? Or by analogy, if you can get all the benefits of a Costco membership – for example, discounted/ wholesale prices on a huge array of merchandise – without being a member, why would you spend $60 to buy a Gold Star (basic) membership? Yet many club boards continue to promulgate the message to their dues-paying members that the revenue derived from non-members is essential to the club’s financial well-being. But is this really true? Beyond generating incremental revenue, is it actually profitable to host non-member events? The IRS is interested in how clubs answer this question, of course, because if clubs are making money on non-members, then they should be paying taxes on those nonmember-derived profits. And the reason I’m interested is because if it’s not profitable, why on earth would a club want to host non-member events? Interestingly, CPA Mitchell L. Stump has also been interested in this same topic, posing the identical question in one of his Club Tax newsletters, “Is Non-member Revenue Profitable?” 12
BOARDROOM | MAY / JUNE 2021
To answer the profitability question, Stump and I believe that all costs must be considered – not just the direct costs – including planning costs, room setup costs, room teardown costs, billing and collection costs, and the cost of employees (including their benefits) who are involved in serving those nonmembers. Does your club track all of these costs? If so, are they appropriately reflected in non-member pricing policies and charged to them? Or if not, exactly who is paying these costs… the club’s members who are barred from using facilities when a non-member event is being hosted? (Does this seem fair?) As one example, let’s suppose a local organization (non-member) hosts a golf outing at the club. It’s being held on a Tuesday, which means that the club members’ Tuesday morning ladies’ league must forfeit its regular play day so that non-members can use the course. Will club employees be stationed at the bag drop to load arriving players’ golf clubs onto waiting golf cars? Will outing participants be allowed to use the practice facilities? Will there be tee signs, sponsor signs, skill competition markers (e.g., closest to the pin), and contest signs? If so, who will create those signs and place them on the course (as well as retrieve them after the event) … club employees? Who will prepare the rules sheet and scorecards, and place them on golf cars? Who will do the event scoring? Will there be roaming beverage car service on the course during the event, or a staffed halfway house? Club employees will obviously be needed to accomplish all of these activities. So does the price of the outing adequately reflect their labor costs, plus a reasonable profit margin? If not, who is paying these costs? And what about the wear and tear on the club’s facilities? Are participants in the outing allowed to use the members’ locker rooms? At one such outing, club members were horrified when upon entering their own locker room (which they had just recently renovated through member assessments), they found non-member outing participants sprawled out on members’ brand-new sofas with their feet atop the coffee table. According to Stump, “non-member functions cause wear and tear to the assets that members must foot the bill when it is time for replacements. Has the club set aside some of the non-member revenue to assist in paying for renovations? If so, what percentage is used?” So what’s the bottom line? While hosting events for n-members will undeniably generate additional revenue, will it also increase the club’s profitability? Or is it simply adding to woes? BR
FRANK VAIN Frank Vain is president of McMahon Group, a consulting and planning firm service to private clubs. He can be reached at fvain@mcmahongroup.com
EXECUTIVE COMMITTEE
Fitness First While Millennials have been a topic of conversation among club leaders for a decade or so, they are finally reaching the point where they will have a major impact on the industry’s success or failure. Depending on where you want to start the clock, the oldest Millennials will turn 40 this year. The average age of the new member at a country club is 42. This means that for the next decade and a half, the number of people in the prime joining years (ages 36 to 45 for the typical country club) will be on the increase. This is great news for clubs. Those who have been around awhile will remember what happened when Baby Boomers – the parents of the Millennial generation – were at this point. It led to the development of a lot of golf courses, club facility renovations and expansions and a host of new demands, like serving women and families. In fact, expansion of the MY metric, which reflects the ratio of the population in middle age (the M) versus the young (the Y), tends to be good for a host of things that help clubs. This is because so many people are entering their prime earning years, so they have children, buy houses, seek out neighborhoods with great schools, invest in the equity markets and join clubs. This drove the booming economies of the mid to late 1980s and it is likely to make for the Roaring Twenties, once we get this pandemic behind us, of course. An expanding addressable market is good for many businesses, but it is best for those with the right products and services. Based on the above, you can expect homebuilders, car and technology companies to do very well in the next several years. If private clubs want to join this party, they must continue to push ahead, replacing stuffy with casual, staid with fun and male centricity with a family focus. One of the top opportunities in this transformation is in health and fitness. While this has been an expanding element of the club experience for much of the past decade, we are only getting started. Based on values and participation, it is likely that fitness and wellness will be to the country club and gated community of the future what golf was to the past. When we think of fitness and wellness, our mind’s eye might run to rows of treadmills and rooms full of 14
BOARDROOM | MAY / JUNE 2021
circuit training equipment. Those are part of the mix, of course, but increasingly only the initial ante. For fitness and wellness to be the catalyst it can be, your facility should include plenty of space for stretching and classes, supported with a rich mix of programming. This allows it to reach its full potential and become what is important in all club activities — a source of community. This also means there will be gathering spaces nearby for that smoothie or healthy snack after a workout or a place to relax and talk with other members. To meet the opportunity ahead, fitness and wellness should be part of your club’s DNA. It begins with a fitness center, but runs over into dining menus, children’s programs, spa services, physical therapy, lecture series and more use of your outdoor spaces. It includes other areas of your physical plant, including air circulation, healthy lighting, sustainable practices in the clubhouse and on the course. Now is the time to build these facilities and deploy these programs. Large-scale fitness providers have closed or been weakened by the pandemic. The boutique center that fits in at a club will be in higher demand. Users will appreciate the limited density, heightened safety protocols and personalized service. A massive demographic shift will take place over the next decade as 80 million Millennials enter their prime earning years, which for clubs means prime joining years. Many of them will be interested in golf, but most of them will be interested in healthy pursuits. If the private club moves fitness from a “nice to have” to a core component, they will be in position to thrive and grow. BR
0 198
THE MOST AWARDED
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 and the way we do F&B has changed with it. Costs need to be carefully monitored. Tight control is essential.
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 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
ROBYN STOWELL Robyn Nordin Stowell is an attorney with Nelson Mullins whose practice is focused on the private club industry. She may be reached at (864) 373-2353 or robyn.stowell@nelsonmullins.com.
LEGISLATIVE & LEGISLATION
Money, Money, Money, Money! While the country is cautiously optimistic we might turn the corner on COVID-19 sometime soon, the most concerning issues for my clubs have the unifying theme of “money.” Many clubs enjoyed some positive financial developments during COVID-19, even amid challenges. Poised on the cusp of the “next phase” – whatever that is – how shall we invest financial benefits and protect against potential challenges? Here are my top five thoughts. Employee issues: So much to say. On the national level, we likely will see minimum wage increases and adjustments to overtime rules, but state law developments might be more impactful. Many states have added or are adding paid time off requirements and have increased their own minimum wage. Employee claims are increasing, claiming hostile work environment and new iterations of discrimination. Related money issues: Budget for significant increases for wages and benefits; budget more for your HR department or you HR consultants; plan to update your employee handbook and to increase efforts in employee training (including management training), ensuring employees have access to your grievance process and updated safety protocols. Insurance issues: My usual advice is to review your insurance coverage whenever you add facilities or services. This year, I would add that there will be new coverage exclusions at renewal time. Related money issues: When you renew is your opportunity to negotiate endorsements and special coverages, so be proactive: obtain appropriate coverage advice (from more than just your agent) and ask for what you need; anticipate and budget for significant premium increases. Membership issues: If you were blessed with new members this year, don’t squander that. Invest in the effort to “make members” out of these new members. Connect them strongly to the club so they stay members when things settle down. Consider simplifying and limiting your membership offerings and check local law requirements (particularly if 16
BOARDROOM | MAY / JUNE 2021
you do not qualify as “purely private”) to be sure your offerings do not violate discrimination laws. Many clubs are learning that state law requirements are inconsistent with their membership categories or their operations (affinity groups, tee time and facilities use restrictions, etc.). These can be expensive mistakes. Related money issues: Invest in making your new members stick and be sure you are not creating a potential legal liability by violating local law requirements. Homeowner association issues: Political issues, right? Now might be the moment that the club and the HOA can come together. Homeowners might have joined the club, or they might see that the club benefits their home values. The HOA naysayers might have drunk the Kool-Aid and now might be the moment to negotiate a better path forward together, whether through merging the club and HOA (to eliminate redundancies, such as expenses and GM time commitments) or entering into collaborative agreements that benefit both entities. Related money issues: Financial benefits from merging the club and HOA, or from collaborative contracting, can provide a firm foundation for whatever pivot comes next, so don’t miss this moment of goodwill to move this issue forward. Documents issues: Clubs got a pass if their bylaws said a member meeting “shall” occur in person at the clubhouse in June. No court would fault you for a changed date, mailed ballots, or a video meeting. Now we know better and need to do better. Club documents should be updated to give the board flexibility to address unexpected circumstances. While at it, update for membership issues just mentioned and for leadership development (so you are set for the next challenges). Related money issues: It is well worth the cost to update your documents to avoid being challenged in the future, and you can incorporate helpful provisions while you are at it. B R
Golf Maintenance
ANNETTE WHITTLEY
BOARDROOM BASICS AND BEYOND
Annette Whittley, is a food and beverage training consulting and search executive with Kopplin Kuebler & Wallace, a consulting firm providing executive search, strategic planning and data analysis services to the private club and hospitality industries. Annette can be contacted at (561) 827-1945 and at: annettee@kkandw.com
It All Starts (and Ends) at the Door First impressions count, and they set the tone for everything in life. So why not improve the first impression your members have at your restaurant. When you are evaluating the food and beverage experiences in your restaurant, look no further than your host stand. Most of the fundamental issues with service in a restaurant can be traced back to the door. The host stand in any restaurant is a critical point in the entire experience. Not only is it the first AND last impression your members have, but the employee who hosts the stand controls the flow of members into the restaurant and therefore the experience that you are able to provide to Every. Single. Member. First (and last) impressions are defining moments. The warm welcome a member receives will set the stage for everything that follows. Yet so many locations do not invest in a host at all, OR they forego having one during slower periods or shifts. The responsibility of greeting and seating invariably falls on either: 1) The manager, who should be otherwise engaged in managing the entire dining room, checking on the flow of the floor, ensuring that all members have everything they need AND nothing they do not. Checking the pace of food coming from the kitchen, ensuring your standards are being hit. Interacting and engaging with every member of their team AND every member in the dining room. 2) The servers, who should be greeting their tables, taking drink orders, describing food and specials, taking food orders and guiding the members’ experience, paying attention to the tables in their section and moving seamlessly through their sequence of service. 3) Any other member of the team who happens to be passing by and may or may not have a clue what they are doing. Therefore, the first thing to add to every shift is a designated host. On busy shifts it will be necessary to have two (or more). One as an “anchor” and one to seat each member. The moment someone other than a host is seating members, all other aspects of the service drop slightly. Members arrive to no warm welcome, look for someone to seat them, or, even worse, they seat themselves. 18
BOARDROOM | MAY / JUNE 2021
Next, look at what exactly hosts should be responsible for and what their duties should include. They should own the floor plan of the restaurant. Each shift, they should equally assign sections to the servers working that day. Sections are important as each server (and the leaders) should know who is responsible for each table in the dining room. Clearly assigning sections improves communication and accountability. The sections need to be rotated each shift amongst all servers. Every team member therefore gets to take care of every section on a rotating basis. A great host will plan out these floor plans several days in advance according to the team schedule. The host team will be answering the phone, taking reservations, making note of special requests, preferences and needs and often handling to-go orders. Your hosts also manage the flow of members into the dining room; it is on their shoulders to make sure members are seated in a manner which protects the integrity of the restaurant. This means that we should not double/triple seat any server sections. We should not fill all the dining room tables within a short window of time. When we make errors in seating, it has a domino effect on the entire experience. The door gets overwhelmed, then the servers, then the bar, then the kitchen, then the runners and then everyone leaves at once. We would never entertain sending 40 guests out onto our golf course in a 20-minute window, yet we do it in our restaurants frequently and it has a negative impact on our a la carte dining. As restaurant managers, we also need to encourage reservations. We need to have a system for taking reservations. Let your members know that if they want the table of their choice at the time of their choice, they need to call ahead for a reservation. The same way they would if they wanted their choice of tee time. In the private club industry, it may be hard to make this culture change. So how do you start? Firstly, acknowledge it can be difficult to make a significant change outside of a crisis. SEE BOARDROOM BASICS AND BEYOND | 112
FORT WORTH | PALM DESERT | SCOTTSDALE | BEVERLY HILLS CLUBDESIGNASSOCIATES . COM | 866-484-9853
T�� A���� -W� � � � � � F� � ��...O � � A �� �� � � T�� � . M����� P������� | A����������� | I������� D����� | C��������� 2020 BoardRoom magazine “Excellence in Achievement” Award Winner
SCOTTSDALE | BEVERLY HILLS | FORT WORTH | PALM DESERT | 888-217-1117
PHXARCH . COM
The Summit Club of Tulsa, Oklahoma
Gregg Patterson It’s All About The Social Key Performance Indicators COVER STORY BY DAVE WHITE, EDITOR
“I’m addicted to caffeine and conversation and good conversation is at the very core of Who I Am.” He swooped across the stage, arms flailing, voice rising and as intensity gripped his audience, he emphasized the point. “I love doing The Hemingway, living the adventure, reflecting on The Journey, embracing uncertainty, energized by risk, fueled by curiosity. And all this ‘Hemingway– ing’ gives me The BUZZ!!!” That, for me, and many others, I suspect, happened to be our introduction to Gregg Patterson...a high-energy guy buzzing the stage before a captive audience of students at the Club Management Association of America (CMAA) World Conference some years ago. And nothing, to this day, has changed in the high-energy private club world of the now-retired Gregg Patterson. Who is this guy? Who’s the man who’s always searching for The Buzz to bring the Big Happy to clubdom? What picture in your mind captures that? “Club professionals are driven by curiosity. Why do things work as they do, why are people as they are, what needs to be done to make people and things work better together?
20
BOARDROOM | MAY / JUNE 2021
“They’re deep generalists, knowledgeable in all the bits and pieces of the club operation and, equally as important, they’re deep specialists, fluent in the people side of the club equation,” Patterson related during an interview on an unusually quiet (for him) day. “Being interested in the ‘big likes’ of every staffer and every member, being appreciative of their needs, wants and expectations, are necessary ‘must-haves’ in a people business like ours. Curiosity is everything.” What can we learn from Gregg Patterson, a longtime private club general manager who spent 34 years as the general manager of The Beach Club of Santa Monica, CA? And what attracted Patterson, the enthusiastic-as-ever CEO of his company, Tribal Magic, a worldwide private club industry consulting firm, to clubdom? EARLY DAYS
Born and raised in a small town in Maine, Patterson was always employed from a young age, starting as a paperboy and then mowing lawns for neighbors. During his summers in high school and college, Patterson put in time as the town’s gravedigger, working for his Russian history teacher, the cemetery’s sexton, and as a dishwasher/pot and pan washer in his fraternity during college. Patterson majored in history as an undergrad and then spent his senior year in London, England, doing an independent research project in Anglo-Egyptian diplomatic history between 1918-22. “That convinced me I didn’t want to get a PhD and do research...talk about a very lonely, no people type of business, that was it!” Patterson, after graduating, but before returning to the U.S., was an illegal alien for a year, working in a handmade silk tie operation on London’s New Bond Street. ➤ PICTURED L-R:
Gregg Patterson, Tribal Magic; Dave White, BoardRoom magazine editor; John G. Fornaro. BoardRoom magazine publisher
from Cover Story | 21
“I got a grubstake digging graves, rebuilt a motorcycle, drove to California, and arrived in L.A. with $35 in my pocket!” Patterson started working as a security guard at the Hillcrest Country Club. “My first exposure to clubdom. The chef recommended I become a busboy ‘because they feed you,’ and suggested I contact the Bel-Air Country Club for a job ‘because they’ll hire anyone.’ “ So, Patterson started at Bel-Air as a busboy, fell in love with the business, and went on to be a waiter, captain, then wine steward, finally maître d’. “Along the way, I got some good advice from the general manager...get a master’s degree from the hotel school at Cornell!” So, it was off to Cornell, where Patterson earned his master’s degree, fell even 22
BOARDROOM | MAY / JUNE 2021
more deeply in love with clubdom, and where he met another graduate student, Elaine, who became the love of his life. “We lived in the same dorm, on the same floor, but in different master’s programs. She got her master’s from Cornell’s School of Industrial and Labor Relations,” Patterson related recently. “We bonded through travel, books, values, and most of all GREAT conversation (and as Elaine says, the conversation began in graduate school and never ended!!!).” Elaine spent her life in the corporate world of big-time oil as a human resources director, which, as Patterson suggests, is “a dramatic contrast to clubdom, which is, by contrast, a very small business. She’s so bright, so organized, so analytical, so reasoned, so thoughtful and so adventuresome that all her ‘goods’, in some small way, rubbed off on me,” Patterson acknowledged. “Elaine has given me the emotional center, the support network, the strong foundation that has allowed me to ‘become’ what I’ve become. Without her, I would have frittered away my energies on foolishness….” THE JOURNEY
While attending Cornell, Patterson worked part-time as the head bartender at The Moose Club. After graduating, he went to work for the Army Club System before being recruited back to the Bel-Air Country Club as assistant manager. ➤
lifestyle master planning • clubhouse design + detailing • furnishings
country club of new canaan - new canaan, ct
Judge us by the company we keep! PARTIAL LIST OF NOTABLE CLUB PARTNERS
Aronimink Golf Club
Ekwanok Country Club
Metairie Country Club
M a nc he st e r, V T
Ne w Orle a n s, L A
Baltimore Country Club
Farmington Country Club
Orchard Lake Country Club
Ba lti more, M D
C h a rlot t e sville , VA
Or c h a rd L a ke , MI
Bellerive country Club
Kansas City Country Club
Westchester Country Club
St. Louis, M O
Mi ssion Hills, K S
N e wtown Squa re, PA
Rye , NY
BOARDROOM MAGAZINE EXCELLENCE IN ACHIEVEMENT AWARD WINNER 2013 2014 2015 2016 2017 2018 2019 2020 csmith@c2limited.com cromann@c2limited.com
(203) 259-2555
w w w. c 2 l i m i t ed . c om
from Cover Story | 22
“I spent two years there when a BACC member suggested I try for the GM job at The Beach Club of Santa Monica.” Gregg got an interview, landed the job and told the board I’d stay with them for at least three years.” That three years turned into 34 years as general manager at The Beach Club. Education has always been and remains a big part of Patterson’s life. He taught the club course at Cal Poly, Pomona, CA, and other business courses, for 14 years as a part-time adjunct professor. The late Joe Perdue of the CMAA then asked Patterson to teach in the very first BMI-II program at Cal Poly, “which, almost 30 years later, I’m still doing along with the BMI-V program in Boston.”
There are two stages of trust. New boards and new managers are given stage one ‘tentative’ trust, whereby the membership doesn’t have much to go on but will assume that you’ll do the right thing for this club... Seasoned managers and boards who’ve been doing manager and board for a while are given stage twotrack record trust. We know how you’ve acted in the past and we trust that you’ll act that way in the future. You’ve earned trust. 24
BOARDROOM | MAY / JUNE 2021
Patterson spoke at the CMAA World Conference in Hawaii 26 years ago, “where I met John Fornaro, who was just starting BoardRoom magazine.” Patterson has been asked to speak at the CMAA World Conference every year since then. He also has been a regular contributor to BoardRoom magazine over the past 25 years. He has participated in other Boardroom happenings, including BoardRoom Institute, the online educational program for private club boards of directors. He also started speaking with Tarun Kapoor for the Asian American Hotel Owners Association (AAHOA). “This has led to the growth of my own speaking business, which has taken me across the world – U.S., Canada, South America, Asia, Africa and Europe. YOWWW!” Patterson retired from The Beach Club of Santa Monica as general manager in January 2016 and has devoted his time since then to “writing and reflecting and to expanding my speaking business. All of which continues to be a BUZZ!” “My why in life hasn’t changed...to meet interesting people, who through great conversation, can enlarge and enrich my life. That ‘why’ is why I’m so enthusiastic about and committed to my wife, my friends and the club business. “I explain the WHY of club management with the 75/25 rule...75 percent of a manager’s job is generating Big Happy for club members and staff, creating relationships between members and staff and building the member-member, staff-staff and staff-member communities. The other 25 percent of the manager’s job is to efficiently deliver the goods, services, programs, facilities and people needed to create relationships and community.” What does Patterson consider as the keys to success in the private club industry? “Yes, it’s a business, and competence with business skills is job one,” Patterson emphasized, and there’s also the people side of the equation that Patterson defines as the social KPIs... Patterson’s specialty. “You have to have people around you who can relate to people, who can generate Big Happy, who are likable and are big-time interesting... people who have energy and enthusiasm, imagination and creativity. It’s addictive,” he opined. It also requires patience, loyalty and commitment. And it takes time. “Members can smell competence and they’ll ask, ‘Does this guy know what he’s doing?’ “ Then there’s trust! According to Patterson, “There are two stages of trust. New boards and new managers are given stage one ‘tentative’ trust, whereby the membership doesn’t have much to go on but will assume that you’ll do the right thing for this club. We believe you’ll act in a way consistent with your track record before becoming the manager or board member. “Seasoned managers and boards who’ve been doing manager and board for a while are given stage two-track record trust,” Patterson expounded. “We know how you’ve acted in the past and we trust that you’ll act that way in the future. You’ve earned trust. “Knowing the trust score for each of these stages is a must for managers and boards. Improving the trust score is critical. There are also two other stages we should be wary of... the danger zone where I think I can ➤
Is NOW the time for your next big move? Are you passionate about the club industry, but can do without the long hours, challenging members and internal politics? It’s a great time to be a Franchise Partner with Gecko Hospitality.
Your recipe for success. Starting a new business as an executive recruiter takes hard work, but our franchisees will tell you that it’s more than worth the effort. Plus, you’re not alone. We’re there from the start, setting you up for success with our proven franchise model. • • • • • • • •
Low capital investment Turnkey operation with proven strategies Excellent quality of life Fully integrated, internet-based technology Highly effective franchise structure and models International recognition Award-winning company 40+ franchise partners throughout the U.S. and Canada • Be your own boss!
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. 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.
Contact us today. Robert Krzak CPC, CERS President 239-690-7006 ext. 100 Robert@geckohospitality.com
Disclaimer: The information contained is not an offer of a franchise, nor is any such communication directed to the residents of any jurisdiction requiring registration of the franchise being offered and sold. An offer can only be made through a Uniform Franchise Disclosure Document in states where it has been registered and declared effective and in compliance with applicable law.
Don’t wait any longer. Start building your business today. Visit franchisegecko.com to get started.
from Cover Story | 24
stretch the trust, and the final stage of trust is gone. “When the trust is gone, you’re gone!” Creating trust is critical and in Patterson’s opinion, trust is built on three simple principles. • Tell lots of people what you’re going to do, why you’re doing it and how and when you’re going to do it. Give them the plan, communicate the what, when, why and why not via the scribble (white papers, newsletters, letters from the board) and the Yap...walk, talk, committee meetings, forums, one-on-ones and annual meetings. And don’t leave out the scary downside of the decision you’re communicating. • Do what you said you’d do. Carry through with what you said you’d do and keep communicating, and • And after you do what you said you’d do, tell lots of people that you did what you told ‘em you’d do...and keep repeating the message....lots. “And if you want the boot from your club, ignore the big three,” Patterson injected. “When it comes to trust, boards and managers need to understand the trust mindset of the membership and staff. Members are smart and trust boards and managers who treat them that way. “Members care about what’s happening before it happens, while it’s happening and after ‘what’s happening’ happens. Members want it simple; they want to know the why, as well as the what of what’s happening; members want proof...the facts. “And members trust those who listen and respond, and they trust people they like,” he added. “Members want lots of examples, and they’ll fill in the holes if they’re not given the what, the way, the when. They’ll trust the board and man-
26
BOARDROOM | MAY / JUNE 2021
Members will assume you’ll do in the future what you did in the past, and trust violations will be remembered for a very long time. People are inductive thinkers, and members will draw big conclusions from small decisions. They want transparency because secrets diminish trust. Let people know there’s nothing being hidden, and the what, why, how and when are trusted when repeated endlessly. Want the boot? Ignore the trust mindset. ager if the Alpha dogs and Queen Bee (the influencers) trust them and will trust them if staff favorites trust the board and manager. “Members will assume you’ll do in the future what you did in the past, and trust violations will be remembered for a very long time. People are inductive thinkers, and members will draw big conclusions from small decisions. They want transparency because secrets diminish trust. Let people know there’s nothing being hidden, and the what, why, how and when are trusted when repeated endlessly. “Want the boot? Ignore the trust mindset.” SOCIAL KEY PERFORMANCE INDICATORS As trust helps create the ‘glue’, Patterson maintains that social KPIs – Social Key Performance Indicators – are the foundational tactics that make for a great general manager and extraordinary club. “Our social net worth is front and center whenever a member, guest, or employee visits their club. The social experience is quantifiable and numbers matter. It helps us measure and achieve the results we want for our club members,” he added. Some of the measurable metrics people use to evaluate their club and its investments include: • Number of years members and staff stay • Number of member-member, staff-staff, staff-member eye contacts • Number of member-member, member-staff, staff-staff handshakes, fist bumps and hugs • Number of greetings and goodbyes • Number of times management greets guests in the lobby during private events • Number of times management greets members in the lobby during club events ➤
EACH CHAPTER IS DIFFERENT AND BETTER BY ELAINE PATTERSON
Editor’s note: Several years ago, as Gregg Patterson prepared for his retirement as the general manager of The Beach Club of Santa Monica, his wife, Elaine, wrote a special article for BoardRoom about the preparations and how she viewed their future together. Now as BoardRoom honors Gregg Patterson for his contributions over the past 25 years, Elaine updates us on how she and Gregg, as a couple, prepared for their retirement. She gives valuable thoughts and takeaways that can help others prepare for their retirement. After several years of weighing pros and cons, setting dates and then postponing them, the big day finally arrived in January 2016 – Gregg’s retirement from The Beach Club of Santa Monica. I remember a huge stage on the beach, hundreds of people, speeches; Gregg riding his motorcycle up the beach path, and a group of us setting an effigy of Gregg on fire. The next day we cleaned out his office, piled everything into the old Dodge van and drove off, with a few staff and members waving farewell. If they had been tossing rice or birdseed in our path, onlookers might have thought we were a newly married couple leaving their wedding reception for a new life together. In fact, although we’d been married for 35 years by then, we were heading off on a new chapter of our life together. But we didn’t go “cold turkey.” Gregg quickly moved into his second career as a nearly full-time speaker, educator and writer. He was busy every day, talking to clients, creating agendas and seminars, writing articles, advising students, mentoring other managers, and booking endless flight/hotel reservations. The big change was that he had total freedom to schedule his time, which meant he could start every morning with an hour or two of reading and take a bike ride every afternoon. And we would no longer receive 2 a.m. phone calls from the security service telling us that an alarm had gone off at the club. I continued working, but part-time. Since we’d never had the same days off while working, I always believed we should gradually ease into retirement. After all, we had very little experience being at home, in the house, together, all day, let alone all week.
I’m a few years younger, so I planned to work for a few years after Gregg retired and that became the perfect “glide slope” into a shared retirement. It didn’t take long for me to notice some changes to our lifestyle, even while I was still working part-time. • I had always left home for the office before Gregg, so leaving him home in the morning wasn’t new. But now Gregg was there waiting when I arrived in the evening, unless he was traveling. I have to say, NOT coming home to an empty house is nice. • I was now able to join Gregg for almost all of his international speaking trips. Going to fascinating overseas places with interesting club managers is really nice. • Our vacations no longer started with a mad dash to connect with the hotel’s internet so Gregg could catch up with emails from the club. Email could wait – and that’s incredibly nice. At the end of 2017, I retired completely. It’s a thrill to make my own schedule every day and not live by the clock. I’ve been able to get more involved with two educational institutions where I’ve served as a trustee, coach/mentor old human resources colleagues, edit resumes for friends, take daily exercise classes and neighborhood walks, putter with flowerpots and tomato plants in the garden, and spend a lot of time planning trips. Of course, there’ve been some adjustments, too. • In my corporate life, I saw how frequent and/or unexpected business travel can be difficult for the whole household. As “retired” Gregg began traveling more often for seminars/conferences, I learned that lesson personally. SEE COVER STORY | 112
MAY / JUNE 2021 | BOARDROOM
27
from Cover Story | 26
• Number of times management greets members and guests in the lobby during lunch and dinner • Number of pro/member (tennis, golf, gym) encounters • Number of front office visits by children • Number of impromptu member/staff/guest conversations with the manager • Number of impromptu member/staff/guest visits to the GM’s office • Number of team-building social experiences for the staff • Number of member social and athletic events • Number of recurring annual “all club” events • Number of new member orientations by the GM • Number of new staff orientations by the GM • Number of times the GM acts as MC for staff and member events • Number of members on committees
28
BOARDROOM | MAY / JUNE 2021
• Number of members on the waitlist to serve on committees • Number of member visits per month • Number of minutes members linger during each visit • Number of staff and member laughs per hour • Number of encounters during which members and staff use the names of the people they’re encountering, and • Number of minutes members speak to members and staff when they visit. EMOTIONAL CEMENT Clubs are about relationships and community and the emotional bonds that cement members to members, staff to staff and people to place (the club). Clubs that create strong emotional bonds, Patterson considers “sticky” – clubs that have big stick emotional cement that attracts members, retains members and gets members to use their club often. ➤
from Cover Story | 28
“Those who do emotional cement well – who understand that emotions are the glue that holds a community together – get the job, keep the job and make more money,” Patterson intoned. “And you’ll know when a manager has created emotional cement by checking the club’s Big Stick Metrics: • Longevity of staff • Longevity of members • Frequency of member visits • Linger time per visit • Money spent per visit • Guest invited per visit, and • Manager longevity!!! “And clubs that have the metrics, clubs that create big stick emotional cement bring the big bucks to the bottom line.” Patterson believes that the power of Social KPIs has been dramatized during the pandemic. “Golf and clubs are booming because people need people more than ever and they know, as never before, that the club experience satisfies that need. Members are hungry for those personal gestures – the big hello, the elbow bump, the big laugh, the engaged conversation, the ‘you know my name’ moment – that deliver the warm embrace and tell members and staff they’re wanted, needed and will be cared for during their visit. “Some things have changed during the pandemic, but the basics haven’t – people need people and the club experience delivers.” Yes, things and events that affect the private club industry have and continue to change, as Patterson enumerates: • Clubs as a ‘social badge’ have less value • There has been the growth of the true general manager, overseeing clubhouse manager, golf pro and golf course superintendent • The recognition of the club manager as a true professional SEE COVER STORY | 108 30
BOARDROOM | MAY / JUNE 2021
GREGG PATTERSON
A Friend of BoardRoom BY JOHN G. FORNARO, PUBLISHER As we celebrate BoardRoom magazine’s 25th anniversary, we haven’t forgotten the people who have contributed to our success and who enhance and improve the lives of club managers and staff while providing club members with exceptional member experiences. Gregg Patterson is one of the many people who have been part of BoardRoom since its inception 25 years ago. He spoke at our first PCMA conference 26 years ago. Gregg made such an impact on us that we knew Gregg would become an integral part of BoardRoom magazine. There’s only one Gregg Patterson, now retired as a private club general manager who thrives with his consulting company, Tribal Magic. He has a sense of purpose, specific values and doesn’t compromise on them for anything. He understands clearly, he’s in the business, the private club industry, of creating great memories for club members. It’s as his mission statement says, “We’re in the happiness business.” During his 34 years as general manager of The Beach Club of Santa Monica, Gregg regularly rode his bicycle 17 miles to work each day, changed into his suit and was ready to “change the world.” Although he’s no longer a general manager, Gregg remains ready to change the world. Gregg was one of the few that believed in BoardRoom magazine’s mission right from its inception. Gregg understood, “You shouldn’t keep your board in the dark, but provide board members with information that will enable them to handle their board duties properly and efficiently.” Keeping board members informed helps deter micromanagement by board members because everyone shares the same playbook. Gregg said to me 25 years ago, “When I talk to general managers across the country, I get the feeling that they are important. As a general manager, when I talked with my board members, I’d get the feeling that I am important.” That hasn’t changed today. Gregg, as The Beach Club’s general manager, remained very active with club members. He had his ministerial papers through which he performed marriages, conducted funerals, all while spending countless hours with new members and their families...introducing them properly to club life and their responsibilities as members. Gregg also used to fly his own plane and, when requested, scattered deceased members’ ashes across the Pacific. Greg is a visionary and a leader in the private club industry. A visionary may see the future, but a leader must decide. Gregg takes chances. He has a childlike playfulness, with sincerity. Gregg values his imagination and allows himself to dream and exercise what his mind’s eye sees beyond what’s in the physical, at the moment. Gregg Patterson remains a significant reason BoardRoom magazine is the number one publication in the private club industry. Though now retired as a GM, Gregg still speaks and writes for BoardRoom magazine under the banner Tribal Magic. There’s only one Gregg Patterson, and the private club industry would not be the same today without Gregg Patterson. B R
Your members expect genuine Five-Star service. Forbes Travel Guide is the authority on hospitality excellence. We work with the best luxury hotel brands globally. Let us help you elevate your service to improve member satisfaction and retention.
CUSTOM SERVICE STANDARDS DEVELOPMENT
IN-PERSON SERVICE TRAINING
“
ONLINE SERVICE TRAINING
Forbes Travel Guide worked with our leadership team to create custom standards and tailored training which have been implemented throughout the club. We value our partnership with Forbes Travel Guide. Jeffrey P. McFadden Chief Executive Officer/General Manager The Union League of Philadelphia
”
For more information please contact
Ted Thie
Channel Partner, Private Clubs
ted@t3clubsolutions.com 605-310-0578
DOUG TURNER
EXECUTIVE COMMITTEE
Doug Turner is a career consultant for the PGA of America, serving the Gateway, Midwest and South Central sections of the PGA. He can be reached at dturner@pgahq.com or (972) 977-2746
How to Attract the Right Golf Employees The golf industry had it made. People loved other service area workers who see the “lifestyle” of working in season as attractive. golf and saw golf careers as cool. So how do you address this? For starters, let’s consider what an attractive Career colleges popped up around the and healthy work environment for potential employees looks like. country. Professional golf management degrees popped up and universities • Competitive pay. This is important but salaries for many positions in a partnered with the PGA of America to club, especially ones like assistant golf professional, have been stagnant for educate and train our industry’s next many years. There are clubs that posted assistant golf professional posileaders. tions with us in 2000 for pay that has not increased. Assistant professionals So even though most discussions of are often high-engagement employees with the member base. going green and sustainability deal with Why is it a good business decision to underpay a person who has so much energy resources, people resources need interaction with members? Pay a more competitive rate. to be sustainable as well. The right emWhat is competitive? Well, if you post the job on our website at pga.org ployees in the right places are necessary for $42,000 all in and get zero resumes for your assistant golf professional for healthy clubs. position, the rate is not competitive. The market is speaking. People who are ill-equipped or wrongly suited for the golf industry can do a lot • Healthy work-life balance. I had an employer tell me that their teachof damage in a short amount of time. ing professional could make $200,000 per year. After I investigated, the Once good people are identified, how do manager said the employee is paid a salary for working 32 hours per week we recruit, retain and revitalize them so teaching clinics and standing lessons. In addition to those 32 hours, the emthey want to be employee partners for a ployee can develop a private lesson customer base and keep 75 percent of long time? what they make from private lessons. For the longest time, the appeal of That sounds good, but what the manager is saying is that if the employee working in a club environment produced a wants to make money, the employee won’t start making a high profit until variety of potential candidates but that is the employee has worked 50-60 hours per week during the season. That is no longer the case. The national compendifficult to do and maintain physical and mental well-being and a family life. sation averages are not terrible but they Create a win-win situation. Learn to allow key employees the ability to aren’t appealing either. take every other weekend off. Create scenarios where these frontline emConsider this narrative: “Hello, we would ployees can take a vacation “in season.” like you to come work for us here at Swing Away Country Club. It’s a great environ• Shorter work week ideas. I had an employer recently say they are workment, members are special, and the golf ing on a four-day work week schedule for their golf shop staff. Staff would course has appeal. work four long days and get three days off. Creative scheduling may help “From the Masters until football seaset you apart as an employer and help you attract and retain key employees. son, you can plan on working six to seven days a week. Memorial Day, July Having the right people can make a huge difference in the member expeFourth and Labor Day, you will be very rience and save your club time and money retraining new employees. busy working and we ask you not to take Learn to look at some of these employees as integral to the success of the a vacation during the season. All of this member experience and treat them well so they will be a part of your team can be yours for around $40,000 annufor a long time. B R ally with some benefits.” There was a long period of time where that worked, but now the industry struggles to find assistant professionals and 32
BOARDROOM | MAY / JUNE 2021
MICHAEL CRANDAL, CNG
EXECUTIVE COMMITTEE
Michael Crandal, CNG is co-author with Gabriel Aluisy of the groundbreaking book The ABCs of Plutonium Private Club Leadership. www.plutonium.club He can be reached directly at (760) 464-6103
The Only Way a Club President Can Look Good
Is When the Leadership Team Knows What Its Real Job Is A search committee makes a decision based upon 3. Your boss (the club president) cannot look good unless the GM/ their prediction of their final candidate’s success. COO (that be you) successfully champions her/his vision and has it looking good in the eyes of the membership. Period. 4. But the GM/COO is only capable of making the club president look You may think that the definition of “success” good if all department heads and key staff are doing the same to them. would be a variable depending on the industry 5. The department heads are incapable of making their boss (you) and job. Instead, it is fixed because everyone has look good unless all of their staff is successful in doing their jobs the same job where success is mandatory. Here (making their boss look good). is the bottom line: “Your job is to make your Leadership is only as good as those “good” hires surrounding them boss look good.” in every department who know what their real job is. This applies to If you’re offended by the simplicity of this the newest hired hourly wage seasonal employee and veteran manstatement, ask yourself, “What happens to those agement. who fail in that endeavor?” Looking at the organization chart, the job of a successful GM/COO The entire leadership team must grasp that is simple: make the club president look good to the membership. Of their real job is to ultimately make your club course, this means leading a team that consistently delivers outstandpresident look good. ing membership experiences in every aspect of club operations. That’s why you were hired or why any of us The only way this is possible is by fostering a healthy environment have ever been hired. Every person you have where department head decision makers throughout the club focus on ever hired was hired based on your predicting three key things: that the candidate would succeed. (In other 1. Bringing the right people on board and putting them in the words — make you look good.) right places A basic tenant of leadership is that you can 2. Developing, motivating and mentoring them only be as good as those you surround yourself 3. Culling the herd when necessary. with. Therefore, it is imperative that you hire The result is a vibrant and supportive environment that thrives people who ultimately will make you look good. throughout the club where everyone (vertically and horizontally) Ask yourself, “How successful is our team knows what their real job is and feels great about doing it. going to be if I make just enough ‘bad’ hires inThe department heads appear to be a collection of superheroes capable of making me look good? Or, what hapstraight from Marvel Comics casting, dedicated to making the totality pens if I fail to get rid of poor performers that of club operations look exceptional. By default, the GM/COO truly apcomprise the whole team?” pears as Captain Marvel in making the club president look good. Thus, If you allow yourself to be surrounded by folks the board senses no need of micromanaging while looking very good who don’t understand what their job really is … to a deserving and appreciative membership. by default, immediately, you are incapable of Most importantly, those at the very tip-top of the organizational making your boss look good. And, that means, chart — the members — enjoy experiences at their club that are conyou are not doing your job. Period. sistently far more than just good. In fact, the best there is. Using the position of GM/COO as our examRemember, whether just accepting a new position, or enjoying the ple, here is how all the dots connect: one you have for many years, everyone must know what their real job 1. The search committee selects a new GM/ is and why they were hired in the first place. COO based on a prediction of that final candidate And, hey. Let’s not forget about that search committee. Wow. It now ultimately making them look absolutely brilliant. looks like they really were brilliant. B R 2. The club president (your new boss) wants the board and search committee to look good to the membership. 34
BOARDROOM | MAY / JUNE 2021
“Kevin and I would like to thank you for your wonderful assistance in the search for our new COO. He will prove to be an A+ leader for us who will take Houston Country Club to the moon! And we believe your process was second to none. I have been involved in a lot of searches over the years and the big-time executive search firms and others could learn a thing or two from you guys.”
William Chiles, Past President Houston Country Club, Houston, TX
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.
LARRY HIRSH
EXECUTIVE COMMITTEE
Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www.golfprop.com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia.
Club Culture Wars Are They Coming to Your Club? It’s old news that our society is diverse and divided. ways evolving with a variety of different activities required to stay We’re divided economically, culturally, socially, racially relevant. Among the most relevant of cultural changes is likely to be and politically. diversity. Just recently, the National Club Association (NCA) esTo many (but not others), diversity is a good thing, tablished the Diversity, Equity and Inclusion (DEI) Committee, especially if we can peacefully coexist. charged with developing programs and guidelines for clubs to folIf those who belong to private clubs, often comlow in areas considered weak spots in the private club industry. munity leaders, can show a harmonious atmosphere I am privileged to be part of that group. Areas discussed in at their clubs, can’t private clubs be an example for our first meeting, held in January, included the promotion of the rest of society to follow? cultural and racial diversity and gender equity in membership, Among lessons I’ve learned in 40-plus years in the management and staff hiring and images and symbols (names golf and club industry is that all clubs have their own and logos). unique cultures and there can be division and conA survey conducted by NCA staff revealed most clubs (78 perflict within those cultures. cent) do not have DEI included in the club’s mission for members Today’s clubs are encountering a variety of chaland 80 percent fail to include DEI for employees. Even more lenges that are likely to cause rifts between the varclubs do not have DEI committees for members (90 percent) or ious member groups (and cliques) that need to be employees (94 percent). The fact that NCA has established a DEI anticipated, planned for and addressed in a timely committee is good news. manner. Private clubs have long been known by the outside world First and foremost, club memberships are (alfor exclusionary policies or insensitive symbols that preserve ways) evolving. Older members move or pass on an atmosphere that can be less than welcoming, not only to and the next generation of members (often from a groups previously excluded (like minorities and women, in different segment of society) seeks to put its imsome cases). print on the club, often to the dismay of the remainIt’s safe to say that one good thing that happened in 2020 was ing older crowd. an increased awareness of the problem resulting from the social In many cases, especially in the COVID/postunrest that’s made headlines in the past year. COVID era, clubs are attracting younger families Though I wholeheartedly support a private club’s RIGHT to who see a safe haven for their family recreation. have exclusionary policies, just because they can is no reason This can often conflict with the club’s traditions they should. Inclusion is good business. For sure, today’s clubs and requires the installation of facilities like fitare largely more progressive than 40 years ago, when most ness centers and enhanced practice areas, and private clubs were exclusive based on religion, race and often family activities, such as drive-in movies, firenationality. works and pizza nights. Most clubs today have some level of integration, though few The younger generation also resists overbearing clubs actually “look like America.” If private clubs seek to attract rules, such as dress codes, no cell phones or music the next generation of members, diversity will be a must. Accordand no use of the golf course for other activities, like ingly, it’s good business for the private club advocacy organizarunning, walking, mountain biking and dog walking. tion (NCA) to lead the way in promoting DEI at its member clubs The club’s atmosphere evolves and not everyone and beyond. likes it, even though it helps the club evolve and Clubs need to be prepared for the inevitable conflicts as memthrive as membership changes. bership evolves with the times. B R Club membership is no longer seen as a status symbol as much as it’s a safe recreation facility, al36
BOARDROOM | MAY / JUNE 2021
INTRODUCING
The Private Club Industry’s First Staffing App
W W W. J O N AS C LU B . CO M
Shift Manager uses smart features, intuitive design and a people-first approach to help you manage your staff. It’s a complete mobile and web solution that helps you build more effective schedules, accurately track time and attendance, and communicate more efficiently with your people.
SCHEDULE SMARTER MANAGE ON THE MOVE FILL SHIFTS FASTER GET REAL-TIME UPDATES MAKE REQUESTS & APPROVALS CLOCK-IN AND CLOCK-OUT
VISIT JONASCLUB.COM TO LEARN MORE
1-888-789-9073 | sales@jonasclub.com
ERIC MOTT Eric Mott is former treasurer of The Ranch Country Club (Denver, CO). He can be reached at: Cell/direct/text (720) 530-5000 or via email: ericpmott@hotmail.com.
EXECUTIVE COMMITTEE
Build It and They Will Come It was the best of times, it was the worst of times… After having lived on the seventh fairway of our local country club for several years, we finally decided to become “involved” to support the club. My first position was on the clubhouse and capital improvement committee, where I realized that most prefer to kick the can down the road to future boards and avoid raising dues or any potentially controversial topics during their term. After a few years, we had a board that finally “got it” and began to think strategically about the future of our club. The main project on our strategic capital plan was a remodel and expansion of the clubhouse. After an initial unsuccessful vote, we made a dire push to sell the benefits of a full renovation, and the second vote passed in 2015 to finance the $5-million renovation. We sold the membership on the idea of “build it and they will come,” but new memberships never came in the amount needed to support the financing of the renovation. Still to this day we cannot attribute the failure. Was it the membership sales team that fell short? Was it management as a whole? Was it the member-driven decision-making body governing the club? Was it the board changing every year? All of these probably precipitated and exacerbated the issues. Fast forward to July 2019. I was asked to become treasurer of the club during my last year on the board. During that month’s board meeting I asked, “Why is the quick ratio now less than 1-to-1?” After explaining to the board why it was concerning (the quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets), the GM and controller seemed to not really care, a concern to me. Further digging into the financial packets in the following months, I suggested a different approach for the club at a board meeting — hiring an outside company to manage the club. Some of the names I was called I cannot mention in this article, but the ones that seemed to stick were “rogue” and “not a team player.”
38
BOARDROOM | MAY / JUNE 2021
At the following month’s meeting, I read to the entire board from our charter the definition of the treasurer position: It was my and the entire board’s responsibility to look out for the financial health of the club. The board started to see the light, but people still questioned why I was digging deeper and asking for certain detailed financial documents from the controller, such as payroll records, AP aging by vendor, AR aging by member, and bank reconciliations. This is where I found shocking information that I shared with our board president and entire board that necessitated in January 2020, a change in management. In March 2020, I received a call from the president of the board asking me if I could reconnect with the firms that I had presented to the board about managing the club seven months earlier. We reviewed a mix of management companies for a fee, capital partners, or staying member-owned and hiring a new management team (which would have required an assessment of over $30,000 per member to pay off debt and make necessary capital improvements). Finally, the board decided that the best option was to remain a private country club, retain our existing culture, maintain our dues structure, eliminate our debt entirely, and have capital improvements made without fear of assessments ever again. If you’re thinking this sounds too good to be true…so did we! Our recapitalization with a private firm has propelled our club forward in a way that would’ve taken a rotating board of volunteers several years to do. In fact, we had tried for several years but to no avail. From the initial conversation to the close of the recap four months went by, a record time for anything to happen at our club. One year later, I remain very proud of the board for stepping forward together for the benefit of our membership and enjoyment of our club. Perhaps “rogues” do have a place in elite country club boardrooms after all! B R The recapitalization was accomplished with Concert Golf Partners.
RON CICHY Dr. Ronald F Cichy, O.M. is professor emeritus, Michigan State University.
EXECUTIVE COMMITTEE
The Title of My Book Is ??? Conversation with my sister (Mary Beth):
others will positively see possibilities in what is written. The possibilities lead to actions, that is, certain behaviors. MB: What are you doing this summer? Some books are written for sheer enjoyment. Likely, your reason for writMe: Finishing a book. ing will be a combination. MB: You must be a slow reader. Define your book’s premise. Why? The premise underlies the values, viMe: I am writing a book, my 18th. sion, and mission of the author and the book. Taken together, the premise MB: Why? You can get Amazon to deliver a is what the author believes in, the message that the author wants to combook to your front door the next day. municate to readers. The premise is the basis for establishing the strategic Why? Believe it or not, three friends told me in direction of your book. the past three weeks that they are each writing Tools – such as the outline – are developed from the premise but first a book. Each of theirs is about their leadership further validation of the premise is required. legacy. Study the external environment, including the competition. How is your Perhaps you are considering writing your book about leadership in your career. Or maybe your book different and better? Are you providing better examples and better club is facing a significant anniversary year in its assessments? List assumptions about what will happen in the future. Strategies are used history (e.g., celebrating a milestone since the by authors to act and compel others to do likewise. club’s founding, celebrating 25 years). In the case of the club legacy book, you may be SMARTER GOALS called upon to head up that committee. When it The premise helps achieve SMARTER goals for the readers. Be specific, comes to your book, this article lays out what may measurable, and so on. Is your book specific to your discipline (i.e., private be some useful tips and pointers. clubs) or general (e.g., leadership)? This article and Part II in the next issue of M measures effectiveness. How will you know you have achieved your BoardRoom will serve as a guide for your book goal? That is the measure. project. Review it, try it, modify and adapt it The letter A could represent your appreciation for those who have confor your situation. Begin your book with your tributed to your book in the form of ideas, or examples, or practices. The premise. contributors to be appreciated include reviewers, those who provided key Premise: I always begin my books with the stories to reinforce key points, as well as the editor. Acknowledge and appremise. The premise answers the question preciate your contributors. “Why?” when it comes to deciding to write R is relevant. Relevant knowledge, skills, and attitudes relate to the reader. your book. T means time, timeframe, time deadline, or some other timely measure. To write is to express one’s feelings and If you do not measure it, it will not get done. What is the estimated time of thoughts. When writing a book (or an article for completion? that matter), the author composes and spells and E is evaluate. R is reevaluate from time to time and update. communicates by letters and words. SMARTER goals need to be continuously developed based on the premise. Writing a book is an act of creation that unThe goals will change as your book progresses. For example, in the early stages folds one word at a time. The author puts their the focus is on writing the outline then the first draft. Later the goal is working thoughts, experiences, knowledge, and skills with the editor to make your book ready for publication. down on paper. The author’s attitude is in the book, too. BACK TO THE PREMISE Books are written for several reasons. A book The premise is the proposition to the reader. The premise is justified by the might be written to memorialize the author and research, knowledge, experiences, and attitude of the author. The premise is their experiences. Some books are written to situational, bound to the circumstances in the present. It all depends on the teach the reader. scenario and the people in it. “Readers are leaders,” so we say. Leaders share their ideas with their readers in the belief that the SEE EXECUTIVE COMMITTEE | 106 40
BOARDROOM | MAY / JUNE 2021
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
GREG PIESCHALA Greg Pieschala is president of BrightView Golf Course Maintenance. He can be reached via email: greg.pieschala@brightview.com
EXECUTIVE COMMITTEE
Stewardship of Your Golf Course Budgets and Plans
Standards do not need to be fully rewritten each year, but annual upOverseeing the maintenance and conditions of the dates will show where priorities are changing and if the strategy is on golf course is a challenge for many private club track to improve the course. directors. Golf course maintenance and agronomy is a highly specialized field and it is tempting to defer completely to the greens committee and superintendent, but the course is usually a club’s key asset and maintaining it is one of the largest operating expenses for the club. To perform their fiduciary duty to the club, all directors need a frame of reference for assessing the efficiency and effectiveness of course maintenance. However, this does not mean that directors need to become deeply knowledgeable about Pythium, slow-release fertilizer, and greens mowing. Having a well-structured annual planning and budgeting process with clear end products for board review should provide sufficient insight for board members to perform their duties to the club. Like any organization or business, clubs prepare operating budgets which the board approves. Far fewer have explicit annual planning processes in place for their golf course. In many, if not most clubs, there is no written operating plan. Making plans explicit and requiring them to be submitted to the board as part of the budgeting process should be a core discipline. This does not require a time-consuming bureaucratic process. While creating a written plan for the first time will take time and effort, plans typically don’t change drastically from year to year and the plan and board can focus on changes from the previous year. Here are the basic elements a club should be expecting from a golf course maintenance plan: 1) Explicit standards: Even beyond the planning and budgeting process, getting the most out of your golf course maintenance spending begins with setting clear standards in writing. After all, how can you know if you’re getting your money’s worth if you don’t have clear expectations for what you should be getting? While this may seem like a given, written maintenance standards are rarely an area of focus. 42
BOARDROOM | MAY / JUNE 2021
2) Operating plan: The core of maintaining a golf course are the agronomic, horticultural, and grooming activities that are performed to achieve the desired course conditions. These happen on cycles varying from daily practices to seasonal fertility and pest control programs to once or twice per year aerifications. All of these activities can be planned across the whole year and comprise the key elements of the operating plan. It is the “what we’re going to do” over the year. Operating plans need to be specific to the different elements of the course (e.g., the program for greens care is different from the program for roughs, etc.) and specific as to targeted timing, materials to be used, and rates of application. During the year, the golf course superintendent will use their expertise and knowledge of the course to make changes in materials, rates, and timing as dictated by actual weather conditions, disease pressures, and wear. However, the fact that plans must be adapted doesn’t mean that you don’t need a plan at all. While the operating plan is all about detail, the board should focus on understanding the general shape of the plan and, most importantly, changes from the previous year, particularly those that impact costs. 3) Labor management: Labor is by far the single biggest cost element in maintaining a golf course and it is increasingly expensive and hard to find. The annual plan should include a staffing plan by month and identify the assumed wage and benefit costs by position. It should also identify the typical daily complement of team members on the course and what shifts they will be working. As labor gets increasingly expensive, the benefit from high labor productivity increases. The labor plan should identify the plan in place to improve productivity – changes in the timing of activities or when they are done during the day, changes in workforce composition between fulltime, part-time, and seasonal labor, and re-engineered tasks should be visible and goals should be explicit. 4) Capital: A golf course requires three types of ongoing capital spending (or financing): course improvements, infrastructure repairs, and upgrades and equipment. SEE EXECUTIVE COMMITTEE - PIESCHALA | 106
SWING DOORS SLIDE AWAY WITH PANELS
LARGE OPENING FRESH AIR VENTILATION
© 2020 NANA WALL SYSTEMS, INC.
SLIDING GLASS WALLS THAT STACK REMOTELY
NanaWall® HSW systems’ single track sliding glass walls integrate within traditional architecture, working around existing structural columns and other remodeling challenges. Navigating segmented curves and angle changes, our walls can also incorporate commercially-rated swing doors that convert to sliding panels and hide away. Learn more about our limit-surpassing innovations at nanawall.com/hsw.
STEVE MONA Steve Mona is director of governance and leadership for Club Benchmarking. He can be reached at smona@clubbenchmarking.com
EXECUTIVE COMMITTEE
Is Your Club Ready to Catch the Wave? Well, 2020 was a year unlike any other for the golf industry. Along with the extreme challenges faced by so many came record participation, with six million people either trying golf for the first time or returning after a brief or even lengthy hiatus. In all, 2020 outperformed 2019 by 27 percent for first timers and those returning, according to data compiled by the National Golf Foundation (NGF). Now, in the early days of a new golf season, all club boards should be asking themselves this: “How do we capitalize on this unprecedented (and unforeseen) interest in the game?” The first step is to understand the people who have connected or reconnected with golf over the last 12 months. NGF data paints that group as refreshingly young and diverse: • youth (630,000 new or returning in 2020) • women (450,000) • non-Caucasians (320,000). Next, we need to take a look at the breakdown of those who want to play the game relative to those who already do. Again, NGF data points in much the same direction: • Under 40: 44 percent of current golf population and 71 percent of those interested in playing • Female: 24 percent of current golfers and 37 percent of those who wish to play the game • Non-Caucasian: 21 percent of current golfers and 43 percent of those interested in playing. Once we understand who we are dealing with, it’s time to seriously consider how our current offerings appeal to these demographic groups. Speaking with current members in each of these categories is a great start, particularly those who recently joined the club and are not part of a legacy membership. 44
BOARDROOM | MAY / JUNE 2021
Focus groups with non-members who represent one or more of these groups is another excellent way to gather feedback, and online surveys are a great tool for collecting relevant information quickly and efficiently. While not every member of these demographic groups has the interest or ability to join a private club, the data suggests that more future golfers (and, in many cases, private club members) will come from these groups than in the past. Then, lest history repeat itself, we must also put effort into understanding what it will take to keep these new participants in the game. A recent NGF article titled “Cracking the Code” touches on two concepts that have been shown to play a role in attrition: esteem and belongingness. According to an NGF study, more than 50 percent of lapsed participants said they didn’t “feel comfortable around other golfers.” Unfortunately, current golfers sometimes contribute to this feeling of discomfort, with 80 percent of core golfers admitting to at least some level of annoyance if the group ahead includes beginners. There’s a lot packed into that research, but for the purposes of this article we’ll point out one important takeaway: A sense of belonging helps keep golfers in the game. So what can clubs do to fully leverage the resurgence of interest in golf? The data shows that those coming into the game don’t necessarily look like those already playing, and there is clearly room for improvement in the welcome new golfers are receiving. If we are truly invested in the inclusion required for growth, it’s time to ask ourselves some challenging but necessary questions: • Is our club welcoming to these demographic groups? • If not, what can we do to become more welcoming? • What is our reputation with these demographic groups? • Are we agile enough to take prompt, decisive action? What we are seeing in the golf industry is a major shift that doesn’t come along very often, and the window to capitalize on those changes won’t stay open long. Will private clubs seize this rare opportunity to grow the game and enrich their memberships? BR
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
tod time
.
0 AM
11:3
r tee will omes fours e no iv cing, time istan se arr cial d tes. Plea ur start so yo in minu fore ainta To m every 12 inutes be t u m r. rte go o than 15 e sta more port to th ay! s tod and re ing u r join fo ks 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 patio . the favori is te w open! E ine o njoy the p u a ort ts dinne e coche ide or pic bottle of re an y r-O d tak k it up in our rder e it h onlin o 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
ROBERT A. SERECI Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, IL. He can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org
ON THE FRONTLINES
What’s Love Got to Do with It? Intimacy and romance are not the same Recently, during a podcast, I was asked to share my secret to Medinah Country Club’s current success. My immediate response was love and intimacy. When I mention the words love and or intimacy, I typically have to explain why I use these words. I suspect people ask because they assume I am talking about romance. Romance and intimacy are not synonymous. Intimacy is when people have a deep connection to one another and, as a result, care deeply for one another. Merriam-Webster’s dictionary defines intimacy as “close familiarity or friendship; closeness.”
To me, these words reflect the emotional and mental closeness that I nurture and share with my associates, members, and board of directors. When looking at synonyms for romance, you will find synonyms such as allure, fascination, mystery, fantasy. None of these words exist in my head when I proclaim love for my staff and the intimacy of my club relationships. A LACK OF EXPERIENCE WORKING IN AN INTIMATE ENVIRONMENT
Many may not feel comfortable using the terms love and intimacy because they have not worked in an environment where people care deeply for each other or they have not used these expressions to describe their work relationships. Maybe the overall atmosphere was intimate, but their manager chose not to embrace it or foster it. Some of us have armor at the club, so members and staff do not get to know us for who we are. Some of us learned from people who did not show love and intimacy, so we assumed this is how we must
If you are confident and act with integrity, love and intimacy will not interfere with doing the right thing. An example of this is couples who divorce but continue to nurture loving relationships with one another. Inherent in every human is the desire for love, belonging, and meaning. I have managed clubs in multiple states, lived and worked on various continents, and I can tell you that I have never encountered a society or community where this was not the case. Romance is something with different intentions and behaviors and is “a feeling of excitement and mystery associated with love.” It is possible to have a physical relationship devoid of any intimacy. So why are we reluctant to use love and intimacy to describe our relationships in our work environment? We are in the relationships business and we strive to develop deep feelings among our colleagues and coworkers, so why the hesitancy? MISUNDERSTANDING OF THE TERM
It is common to confuse love and intimacy with romance. People often associate intimacy and love primarily with expressions of romantic love and “intimate acts” of physicality. While this may be the current social trend, this is a shallow view of intimacy. 46
BOARDROOM | MAY / JUNE 2021
behave to succeed. Others experienced closeness in their past, only to get hurt by the people they trusted most. VULNERABILITY IS NOT YOUR THING
I don’t want to get too deep here, but the reality is that your upbringing has a lot to do with your ability and willingness to share your vulnerabilities. I am eastern European, and most eastern Europeans do not show vulnerability. Typically, we don’t talk about this kind of thing or share our feelings. For many, vulnerability is viewed as a weakness, especially when shown by men. Instead, the expectation is to work through it. Many years ago, I terminated 42 employees because of invalid I-9s as part of an agreement with ICE. I arranged for two chaplains to be there, in addition to the HR team. I cried as I hugged everyone as they collected their last paychecks. At one point, a board member walked in and saw me crying and said, SEE ON THE FRONTLINES | 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
EXECUTIVE COMMITTEE | FEATURE
California Clubs Drive Savings, Lower Costs With Multi-million Dollar Solar Projects By Dave White, editor
More and more, private clubs across the country are getting serious about the use of alternative energy sources, especially the use of solar energy. For many clubs that approve solar projects, it means creative financing, sometimes grants and also lower energy and operating costs. There are many clubs across the country that have installed solar packages resulting in lower electric bills and cost savings for clubs as sustainable businesses, and the steps clubs have taken in approving alternative sources also have a positive
effect on the public perception of clubs, particularly golf clubs. Two California clubs – Blackhawk Country Club, located east of San Francisco in Danville, CA, and Round Hill Country Club in Alamo, CA – have hopped on the bandwagon with the approval and installation of solar projects that will have long-term implications and cost savings for both clubs. Both are BoardRoom Distinguished Clubs. No question, clubs today are faced with tough decisions and tight budgets and solar installations give these clubs a leg up in managing their costs. B R
Blackhawk Country Club Blackhawk Country Club is one of the largest private clubs in the United States and is located just east of San Francisco in Danville, CA. The club offers two premier, championship golf courses (hosting the LPGA Tour from 2006- 2010), two clubhouses, a robust food and beverage program with numerous outlets, the largest tennis complex
in northern California, childcare facility, a competition swim pool that’s home to the club’s championship swim team, the HOX, and a brand new, state-of-the-art fitness and wellness center. In early 2020, general manager Kevin Dunne raised the issue of the club installing photovoltaic solar power generation capability to help offset its annual power generation and electricity expenses. The evaluation continued throughout the year and in December 2020, members of Blackhawk Country Club overwhelmingly voted to construct a massive photovoltaic solar system project spread out over multiple campuses across Blackhawk’s 4,800-acre property. The solar system is projected to save Blackhawk Country Club millions of dollars in electricity over the next decade. Through a mix of ground mounts, roof mounts, and covered carports, the club will construct solar energy-generating systems at campuses at the Lakeside Clubhouse, Falls Clubhouse, Sports Complex, and Tennis Villas. The project also includes solar-covered resort style cabanas at the swim pool and solar-covered shaded hitting areas at the Lakeside practice facility. With the construction of the practice facility solar-hitting structure, the intention will be to simultaneously incorporate golf technology and teaching components, such as Trackman Range, to create a “Top Golf” type member experience. Over the past several years, Blackhawk Country Club has prioritized environmental and sustainable initiatives. All the club’s lighting has been converted to LED, and the mechanical and HVAC systems upgraded to Energy Star-rated systems. Other initiatives include upgraded irrigation systems on the golf courses, and turf reduction programs that are saving about $300,000 annually in water expenses. “The solar system project is the next logical step in Blackhawk’s continued efforts towards a more sustainable and environmentally friendly SEE BLACKHAWK COUNTRY CLUB | 50
48
BOARDROOM | MAY / JUNE 2021
Introd ucing a s e a m les s 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
Round Hill Country Club The project includes: “We’re continually looking for ways to do our part • new structures over two bocce courts that use solar panels to provide for the environment, to not just be energy-effielectricity for the club’s tennis facility cient, but also to be ‘green’ and reducing the club’s • solar panels covering the main parking array that provide electricity to carbon footprint.” the main clubhouse and also power new car-charging stations And with those words, Round Hill Country • a solar array that helps power the golf maintenance facility, and Club General Manager/COO Greg Gonsalves has • an array that provides both solar-based electrical (photovoltaic) enthe club embarked on a new $1.95 million solar ergy for the swimming pool pump house, and solar-based thermal energy energy project expected to provide at least twofor the pool facility as well. thirds of the club’s electrical power, while also “How to get the most value from the tax benefits posed the financing providing short- and long-term savings that will challenge for Round Hill,” expressed Belvedere representative Marge pay for its costs several times over. Leask. “Like many businesses with large investments in land, depreciation Known as the East Bay’s most “well-rounded” reduces net income by a substantial amount, and it would have taken them private club, Round Hill embodies the traditions several years to absorb the solar energy credit and depreciation. and charm of life in Alamo for active families, cou“With Belvedere’s true lease, the bank will take the tax benefits, the club ples and individuals. will own the system in 10 years, and they will save around $650,000 over Round Hill has provided a world-class country financing alternatives.” club experience since 1961. Facilities include a Gonsalves noted that “The club has a longstanding commitment to private 18-hole golf course and practice range, being a responsible steward of the environment through a dedication to 15 lighted tennis courts, an eight-lane competireducing Round Hill Country Club’s carbon footprint, reducing the use of tion-sized swimming pool heated for year-round plastics, and managing robust recycling and composting programs. usage, a well-equipped fitness center, and two “The solar program is just the latest among the club’s improvements oyster shell bocce courts with seating and shade. and updates, having undergone a recent and extensive renovation to the “This solar project is just part of what we do 48,000 square-foot clubhouse. here, including eliminating plastics, moving to “Solar also levels the cost of energy to offset the cost of inflation, exdrinking fountains and refillable water bottles, and ponentially saving money for the club,” Gonsalves added. “For us, this is a our robust recycling and composting programs,” wonderful way to go green as we save money.” B R explained Gonsalves, who noted that he had for years researched how the club could benefit from solar technology. Those plans became reality after discussions with Spreck Energy CEO James Ryan – who is also a club member. “Not many club members have the opportunity to work where they play,” Ryan said. “This was an opportunity to do what we do at Spreck Energy, which is save clubs money via renewable energy, and leverage Greg’s insight into where we could select areas for maximum member use and benefit.” Working in partnership with Spreck Energy and Belvedere Solar Finance, Round Hill launched improvements throughout the grounds to upgrade the club’s electrical infrastructure as part of the solar-based effort. from Blackhawk Country Club | 48
infrastructure,” says David Reeves, Blackhawk Country Club’s board president. General manager Dunne estimates the club will save $650,000 in annual electricity expense. Spreck Energy has been retained as the reputable contractor to build the system. Spreck Energy is a preferred solar vendor for the California Golden State Chapter of the Club Management 50
BOARDROOM | MAY / JUNE 2021
Association of America (CMAA) and has constructed numerous commercial solar projects throughout California. Sustainable Capital Finance (SCF) structured the financing for the project through a multiple-year power purchase agreement. D.V. Patel, Director of Operations for SCF, noted, “Sustainable Capital Finance (SCF) is excited to announce its participation as the PPA provider and financier for the mixed roof, carport and ground mount systems, built by Spreck Energy, that will provide renewable energy and covered parking to the impressive facility and grounds of Blackhawk Country Club. “The array is set to become the largest solar installation powering a country club in the United States, a PPA milestone of which SCF is proud.” BR
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
HENRY DELOZIER Henry DeLozier is a partner at GGA Partners. He can be reached via email: henry.delozier@ggapartners.com
GLOBAL PERSPECTIVES
Taking Care of Your Club’s Economic Health The U.S. Environmental Protection Agency defines sustainability as “meeting today’s needs without compromising the ability of future generations to meet their needs.” In that broad context, any discussion of sustainability among a club’s board should also include a focus on economic and fiscal responsibility as well as the physical environment. In examining the economic sustainability of their own clubs, directors and leaders should be diligent in identifying economic problem areas and establishing healthy protocols for the future. In that process, three questions will surface that require their attention. WHAT IS ECONOMIC SUSTAINABILITY? Economic sustainability is a matter of building the financial model of the club to generate revenues – mostly through joining fees and monthly dues – to fund the club’s ongoing operations and its future capital needs. Two important health markers to monitor are: • Cash-on-hand. The standard of best practice suggests that boards should keep ready funding equal to five percent of annual revenue, according to Ben Hopkinson at GGA Partners. Certainly, the ongoing pandemic demonstrated that extraneous circumstances could introduce paralyzing threats to private clubs short on cash. It’s fiscally irresponsible to hope for the next round of employee protection legislation or other government-supported bailouts that may or may not materialize. • Debt-to-equity. Most board members understand this metric for their own businesses and can compare their experience to Hopkinson’s metric of .2 percent to one percent of debt to annual revenue. He notes that the median of the range of debt is .48 percent of annual revenue. WHAT AILS YOUR CLUB? Three of the most common frailties in private club finance are: 1. Deferred capital planning. Servant leaders know that having a capital plan is a must. In fact, most clubs maintain a 20-year capital plan that reflects the plan to repair or replace all items on the capital assets roster. 52
BOARDROOM | MAY / JUNE 2021
However, many clubs do not stay current with capital maintenance, especially repairing or replacing assets, and find themselves playing catch-up. Recovery is made more difficult by the lack of continuity in boardrooms and distracted club leadership focused on shiny-newobject projects. Top-performing clubs use an intentional recovery plan to stay current on deferred capital and resume timely asset replacement on a consistent schedule. 2. Distorted market knowledge. Board members who are not current in their knowledge of the club’s marketplace risk becoming irrelevant to their members. Outdated thinking in the boardroom exposes the club to stale and stagnant decision making and – worse yet – no fun. For example, training analysis technology and simulators are timely examples of next-generation expectations. So are updated and refreshed dining venues with open floor plans that co-mingle the outdoors and the indoors. New members especially want to see a dependable and current platform for socialization. 3. Distressed governance. One can smell toxic governance a mile away. When clubs take on the aroma of stubborn and selfish boardroom behavior, the club may not survive. Fractures in clubs usually are revealed along the lines of gender and generation. For example, women significantly influence the lifeblood of healthy clubs, and servant leaders are wise to monitor women’s attitudes and utilization of the club. As the saying goes, “Win the children and win the moms; win the moms and win the game.” WHICH FINANCIAL HEALTH PROTOCOLS SHOULD THE BOARD MONITOR REGULARLY? For virus diagnosis, medical professionals watch for certain early-warning indicators. Effective board members, who recognize that their duties go beyond managing today’s problems, take note of the following markers: 1. New member leads. Top-performing membership directors sustain a conversion rate of at least 10 percent, closing one in 10 credible leads. Prior to the first quarter of 2020, most clubs were adding and losing members on an approximately equal basis. It may be reasonable to assume that the pre-existing condition of membership recruitment and retention stasis will continue. The question is what will happen next? Despite myriad other hardships, 2020 was a terrific membership year in most private clubs, with five percent to 15 percent new-member growth commonplace. City clubs and clubs in high-density population areas suffered while clubs offering open-air options and suburban settings got fat. In fact, many clubs are now considering imposing limits on membership growth. Beware of that temptation. Keep your membership SEE GLOBAL PERSPECTIVES | 106
TOP TIER LEADERSHIP
Leadership training and coaching g
g g
g
Strategic planning
g
g
Skill building workshops
g
Board governance and retreats Talent management strategies Respect in the workplace strategies Keynote speaker
AMILCAR DAVY
EXECUTIVE COMMITTEE
Amilcar Davy is the director of research for CMAA. The objectives of the association are to promote relationships between club management professionals and other similar professions; to encourage the education and advancement of members; and to provide the resources needed for efficient and successful club operations. CMAA is headquartered in Alexandria, VA, with 42 professional chapters and more than 40 student chapters and colonies. Learn more at cmaa.org.
Advancing Key Club Performance Indicators Collecting data points to produce metrics which make up key performance indicators (KPIs) is vital to be able to understand what makes up the health and success of your club. Effective KPIs are important metrics to make sure that your club can accomplish its business objectives. In February 2020, the Club Management Association of America (CMAA) announced the next steps in its research evolution, including the formation of a task force to establish standardized industry metrics. Its goal is to provide a common language for use by club management professionals and board members when discussing finance and operational performance information. In March 2020, CMAA created the Universal Key Club Performance Task Force. It encompassed a cross section of the club industry, including Co-chairmen Julie Brown, CCM, CPA, Farmington Country Club, and Michael S. Wheeler, MCM, CCE, Cherokee Town & Country Club. Task force members included Ray Cronin, MBA, Club Benchmarking; Agnes Lee DeFranco Ed.D., CHE, CHAE, CHIA, University of Houston; Jim Hankowski, CPA, Condon O’Meara McGinty & Donnelly LLP; Craig Johnston, CPA, CA, GGA Partners; Philip Newman, CIA, CPA, RSM; and Jennifer Taranto, MBA, CPA, Genesee Valley Club. The task force met 22 times between May and December 2020 to create a core set of metrics that the club industry can use to determine the financial and operational health of their clubs. Using these KPIs alone will not provide a full picture of an organization. They will, however, give you a quick snapshot and provide a basis for understanding your club’s financial strengths and weaknesses. These KPIs, when properly understood and applied, can provide clubs with the analytical
54
BOARDROOM | MAY / JUNE 2021
starting point that will help club management and board of directors make better, more informed decisions. Announced in January, the “Universal Key Club Performance Indicators White Paper” proposed the six KPIs listed below, with the intention to provide the industry with a basic level of information to assess a club’s overall financial health. 1. Change in Net Assets (Member’s Equity) Over Time = (Ending Net Assets – Beginning Net Assets)/Beginning Net Assets 2. Current Ratio = Current Assets/Current Liabilities 3. Debt to Equity Ratio = Total Liabilities/Total Members’ Net Assets (Equity) 4. Net PP&E (Property, Plant and Equipment) Ratio = Net PP&E land/Gross PP&E - land 5. Change in Full Member Equivalents = Change in Full Member Equivalents (Annual Dues Revenues/Annual Dues for a Full Equivalent Member) over multiple years 6. Dues to Operating Revenue = Membership Dues/Operating Revenue From January to March, stakeholders in the club industry were encouraged to read and review the white paper and submit comments through an online public comment form. Additional opportunities to interact and engage on this topic were presented at CMAA’s recent 2021 Virtual World Conference and Club Business Expo. To date, the response for the call for commentary and review has been significant. All comments received will be reviewed and synthesized by the task force and the final white paper is slated for release in early summer. Together, CMAA’s research initiatives are designed to enhance the availability of data, research, and insights for club management professionals and create a club data utility that will allow for equal input from all club systems and use by any industry partner while maintaining the anonymity of a club’s information to the benefit of all clubs. The data will continue to be owned by the CMAA, its members, and participating clubs to benefit its membership, the clubs they operate and the industry. These efforts will use association best practices to evolve CMAA’s research initiatives. For more information, please visit cmaa.org/research/ BR
The King Kamehameha Golf Club Maui, Hawaii
DISCOVER TROON PRIVÉ
Yo u r c l u b . Yo u r c u lt u r e . o u r r e s o u r c e s .
No two private clubs are alike, and we want to help you keep it that way. Of course, that requires a different approach from other management companies. As Troon’s private club division, we don’t own or lease clubs—we’re a proven third-party professional services organization that provides best-in-class systems, processes and resources to the member-owned, self-managed private clubs we serve. To learn more about Troon Privé, contact the team at 480.606.1000, or visit TroonPrivé.com.
The Clubs at St. James Southport, North Carolina
Entrada at Snow Canyon Country Club St. George, Utah
Your members enjoy privileged access and preferred rates at over 300 clubs around the globe.
West Bay Club Estero, Florida
P r I VAt e c l u b s o F D I s t I N c t I o N | t r o o N P r I V É . c o M
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. Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world. These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working, effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work. Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan. A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members. Congratulations to these outstanding private club board presidents. See pages 57, 58 & 59. To view all the Distinguished Club Presidents from the past 12 years visit: boardroommagazine.com/board-presidents
TOP PRIVATE CLUB PRESIDENTS SPONSORS
56
BOARDROOM | MAY / JUNE 2021
JOE GATTONE | PRESIDENT, MEDINAH COUNTRY CLUB | MEDINAH, IL
JOE GATTONE, PRESIDENT
ROBERT SERECI, GM
Five traits perfectly describe Joe Gattone and make him the perfect man for the job. Empathy. Trust. Relentless energy. Friendliness. Positivity. Empathy shown towards the membership and staff by listening and consistently providing thoughtful replies. Towards management by being flexible during the constant changes brought on by the pandemic and providing salaries to employees. Trust by defending his team and providing unrelenting support. This attribute accounts for his approachability and his ability to stay true to his open and honest self, and it makes him a man whose advice others seek. Gattone demonstrates his relentless energy with his attention to detail and by constantly encouraging the team and management to achieve beyond their expectations.
His friendliness and positive attitude create an environment in which everyone is excited to see him around the club. He has a way of making everyone feel acknowledged and appreciated. Robert Sereci, Medinah Country Club’s general manager, has had the privilege of working alongside president Gattone during his two-year term and has seen firsthand the success he has brought to the position. “Rarely has a club president impressed me with their leadership skills once they assumed the role of club president. Mr. Gattone did just that,” said Sereci. “I had high expectations of him, having worked with him for the last six years. I knew him well and had no doubt that he would be an effective leader.” Sereci continued to praise Gattone’s steadfastness and effectiveness, seen by the lucky members that got to experience it, throughout the coronavirus pandemic. Not only has his character been a blessing to the club, but he has also turned the club’s focus to protecting the safety of members and staff, regardless of how much it upset some. This allowed for a smooth reopening according to state guidelines. His constant communication with the membership never left anyone wondering what was happening next and alleviated potential anxieties. Before the club’s initial and new strategic plan, planning and capital projects followed in the footsteps of many other clubs. Spending was based on entrance fees and available cash rather than a strategic approach based on goals and objectives. “These items were then prioritized and funded through a combination of entrance fees, debt and assessment, all leading to a more relevant club to prospective members,” said Gattone. Sereci commended the president’s work that led to a record number of new memberships and a record low in membership resignations, all during a time when the club was either closed or partially open. His success as president comes as no surprise since he joined the board in 2010. He previously served as vice president, treasurer, and director. He chaired the programs and golf committees. The success also transfers to his personal life, where he works as a senior tax partner with PricewaterhouseCoopers Ltd. as the chief tax officer and tax matters partner. As Sereci said, “Rarely has a club president impressed me with their leadership skills once they assumed the role of club president. Mr. Gattone did just that.” B R
ANDY GREENBERG | PRESIDENT, BEACH POINT CLUB | MAMARONECK, NY
ANDY GREENBERG, PRESIDENT
RANDY RUDER, GM
Before joining the Beach Point Club, Andy Greenberg already had quite the resúme. He had received his education at Syracuse University before starting a career in market research and political polling. From there he moved into the family business of processing and packaging machinery. This experience proved useful in his role as board president, leading the membership through the many challenges COVID-19 presented. “During the pandemic, many clubs in our area shut down completely for a matter of time,” says Greenberg. “Beach Point took a different approach and immediately evolved into a COVID-safe operation.”
That operation is one that the general manager, Randy Ruder, says is a testament to the member experience at the club. “While the club is a massive logistical operation, thanks to the work of our board and staff, members only experience pleasure, safety and serenity with their families,” says Ruder. Greenberg spent countless late nights on calls and working with other board members in hopes of reimagining the future of the club. By working closely with management, they were able to provide a safe, fun club environment through the pandemic. “Members benefitted from our evolved digital app, enhanced outdoor dining and curbside options, our reimagined tennis, pool, beach, day camp, fitness and sailing opportunities,” Greenberg said. The president’s work did not go unnoticed, with Ruder speaking his praises. “Andy showed exemplary dedication and interest not just in his responsibilities, but in truly getting to know the team and what went on ‘behind the scenes’,” said Ruder. “He sought to be a partner and worked on ways to make systems and procedures more efficient on the staff side of the operation.” In terms of board operation, Beach Point prides itself on always “ensuring the right people get into club leadership roles” according to Ruder. The board works to avoid getting trapped in day-to-day issues and instead looks to focus on the next five, 10, and 20 years of culture, mission and club evolution. President Greenberg is more than the organized professional at the club. He is a family man with a love of athletics. When he is out of the office, he can most likely be found coaching his three children in the numerous sports they find themselves engrossed in or playing alongside. As a leader and family man, he knows nothing but success. Truly a person that will bring exciting new direction to Beach Point. B R MAY / JUNE 2021 | BOARDROOM
57
BOB HILL | PRESIDENT, MOUNTAINTOP GOLF AND LAKE CLUB | CASHIERS, NC Hill also has a love for the outdoors. He and his wife, Luann, are talented golfers who use their memberships at Mountaintop to share their love for the sport with other couples. His experience with the law combined with his love for golf set him up perfectly for his roles on the board. President Hill made a major contribution to the transition of the club from a developer-owned establishment to a member-owned one. “I dedicated myself to nurturing a governance model with an enabled, professional general manager serving as the chief executive officer, and a sincerely engaged board dedicated to achieving the strategic Mountaintop mission,” said Hill. “Above all, I advocate a mission-based governance structure implemented by a talented and, most importantly, sincerely engaged board as critical to success for our club.” BOB HILL, PRESIDENT CHRISTOPHER ROBINSON , GM This is truly a dream team by any definition, regardless of the difficulties presented in “President Hill is a strategic and forward-thinking 2020, when the club dealt with government regulation and labor competition in North leader who holds us all true to the club’s mission Carolina. This would have proven challenging enough before positive COVID tests were statement and core values.” present among their staff. Mountaintop Golf and Lake Club general manager The experience above all has been an opportunity for learning. Hill and the board have Christopher Robinson has nothing but praise for the turned their focus to fulfilling the club’s mission while simultaneously working towards a club’s president, Bob Hill. capital plan and goals that will secure and enhance its future. Since Hill joined the club in 2013, he has made large To achieve these goals the club has perfected its board structure. Nine members divided strides. He joined the board as club secretary in 2015 into three-member committees: nominating, membership, and finance. Once a strategic before shifting to his presidential role, though he cov- plan has been created on the board level, it is then passed to the general manager for imered both roles between 2016 and 2018. plementation. This has resulted in smooth and successful operations at the club. Hill is a native of the western North Carolina mounAs general manager Christopher Robinson says, “COVID won’t last forever, and our tains but moved to the University of Georgia for law club must continue to flourish.” school in 1973. Following graduation, he went to AtAnd flourish they will. B R lanta to practice.
DR. BOB HYMES | PRESIDENT, WESTWOOD COUNTRY CLUB | AUSTIN, TX
DR. BOB HYMES, PRESIDENT
BRYAN STONE, GM
Dr. Bob Hymes, the director of clinical research for the department of orthopedic surgery at Inova Fairfax Hospital in Falls Church, VA, became a board-certified orthopedic surgeon after he graduated from the University of California San Francisco. Since 2009, Hymes has also made a name for himself at Westwood Country Club. He always makes sure to give back to the medical community by serving as an associate professor at the Virginia Commonwealth University School of Medicine. His giving nature was apparent when the pandemic hit. Hymes initiated an employee relief fund for club staff, raising over $100,000 with his fellow members for employees impacted by furloughs or loss of income because of closures. 58
BOARDROOM | MAY / JUNE 2021
In addition to the money raised, Hymes started the ‘Westwood Cares’ initiative in which members could sponsor meals for frontline hospital workers. Through this work, the club sponsored 1,400 meals that were distributed to area hospitals. The generosity didn’t end there. After their four-court tennis bubble collapsed in November 2019, a few short months before the pandemic began, the board pursued a partnership with the U.S. Court Tennis Preservation Foundation, which accelerated construction on the new permanent indoor facility that had been scheduled to open in 2025. General manager Bryan Stone sings the praises of Hymes and his good work, saying he “has proven himself to be a thoughtful, passionate leader.” As president, Hymes has been instrumental in working with the construction committee in the planning of the $8 million clubhouse expansion and renovation. With his aptitude for strategic planning, he secured a short-term bridge loan that would lead the project to completion 15 months sooner than expected. The plan was approved with a 91 percent yes vote by members at their town hall session. As the first African American board president, Hymes provides a refreshing and muchneeded new perspective in the 67-year history of Westwood. “Dr. Hymes’ professional experience was critical in establishing safety protocols that protected our members and staff during the pandemic,” said Stone. “I was extremely appreciative of his unique perspective on social injustice in our country and his peaceful narratives addressing the national unrest.” His impressive accomplishments at the club and in his professional life are all secondary to his family priorities. When he isn’t changing the world, Hymes spends his time with his loving wife, Sharon, and their three daughters: Kendall, Makenzie and Jordan. BR
DENISE KUPRIONIS | PRESIDENT, KENWOOD COUNTRY CLUB | CINCINNATI, OH
DENISE KUPRIONIS, PRESIDENT
DYLAN PETRICK, COO/GM
“I am fortunate to be a member of [Kenwood Country Club], particularly with COVID challenges. Last summer, we felt comfortable at our club enjoying golf and outdoor dining in beautiful surroundings,” explained president Denise Kuprionis. “I am blessed to have a terrific board and past presidents who offered helpful counsel during these difficult times.” Kuprionis not only made history by being a more than successful leader through uncharted waters, but she was also the first woman elected as a trustee and the first woman to be named president. In 2019, she oversaw a $5 million golf course renovation that included rebuilding bunkers, restoring the original design, and installing a new irrigation system
on one of two 18-hole courses. Under Kuprionis’ guidance, the project was of the highest quality while remaining on budget. Not only did she improve the club, but she worked hard to keep it open during quarantine. This led to broken records in the number of golf rounds, tennis games and pool registrations. Her example heightened employee morale, improving the club’s atmosphere overall. “She should be remembered by her empathy and the concern she showed for every employee partner and each member as we battled the COVID-19 pandemic,” says chief executive officer Dylan Petrick. “President Kuprionis’ efforts and care were tireless for our club.” Before all this began, Kuprionis updated the board governance framework. She created three committees — board, operating and advisory — and crafted committee charters, board governance guidelines and the board policy manual. She shifted the club from a general manager to CEO operating model, with a focus on enhancing the member experience. Because of this switch, Petrick joined the team in January 2020. Kuprionis started her career off by earning her B.S. from Northern Kentucky University and her J.D. from Northern Kentucky University Chase College of Law. When she isn’t at the club, president Kuprionis holds another leadership role as president of the Governance Solutions Group, a board advisory practice. Her 25 years of experience in public, private and non-profit boardrooms have helped her transition to board president at the club seamlessly. Aside from her leadership accomplishments, she is also a fellow at the conference board’s Environmental Social and Governance center, a National Association of Corporate Directors board governance fellow and faculty member and is active in the Society of Governance. B R
ANNE LOCKIE | PRESIDENT, THE OAKS CLUB | OSPREY, FL
ANNIE LOCKIE, PRESIDENT
JEFF HARTIGAN, GM
Not everyone is dedicated enough to create a makeshift video studio in a club’s library to craft and tape messages for members, but to Anne Lockie, this felt like an easy decision. She made dozens of videos to provide clear and concise board communication throughout the approval of The Oaks Club’s new capital plan. Not only did president Lockie’s efforts enhance members’ experience and add a sense of inclusion, but they also made members feel valued and as if their board chairman was interested in speaking to them directly. The gesture cannot be measured, says general manager Jeff Hartigan.
This capital plan was unlike any the club had seen before. Lockie orchestrated a plan that would develop and achieve member approval for the first-ever 20-year obligatory capital plan. Hartigan spoke about Lockie’s accomplishments, noting that she is the first board president elected in their sophomore year of board service. Equally as impressive, she became the first female board president in the 35-year history of The Oaks. “Her ‘big picture’ leadership style is complemented by her long-range planning and genuine care and concern for the membership and its leadership,” said Hartigan. She developed a long-range planning committee and a subsequent strategic longrange plan which allowed for the creation of a revised mission and vision statement. In 2010, Lockie retired as CEO of Royal Mutual Funds Inc. and senior executive of sales from RBC Royal Bank after 35 years’ service. At RBC, she managed roughly 26,000 employees and 10 regional presidents operating across Canada. On top of that, she led her own team as the banking world changed from being transaction-focused to individuals and businesses planning according to their needs. All of this experience and skills complement her role as board president and allow her to not only achieve club goals but surpass them. President Lockie has truly stepped up in her role and has become a leader in the private club industry. Lockie’s creativity and willingness to put in the work have been noticed and appreciated by her members and fellow board colleagues. Hartigan truly said it best when referencing Lockie’s impact on the membership. “Trust is one word that comes to mind and resonates throughout the club.” She is truly a perfect fit. B R
MAY / JUNE 2021 | BOARDROOM
59
LYNNE LAFOND DELUCA
CULINARY & CATERING
Lynne LaFond DeLuca, executive director of the Association of Club Catering Professionals (ACCP). The Association of Club Catering Professionals National Conference will be held August 19-21, 2018 in Napa Valley, CA. Register at www.TheACCP.com. You can also contact Lynne at Lynne@TheACCP.com
Top Trending Event Ideas and Avoiding Virtual Event Burnout Overheard in a staff conversation in a club near you: “Really? We have to brainstorm again? I can’t think of any more virtual member event ideas.” This comment begs these questions: Is your staff getting burned out from trying to be so creative in planning engaging member events? Are your members getting burned out on virtual events? If your answers have even a slight “yes” in them, then read on. Virtual event burnout is a real thing, but it doesn’t have to be when it comes to engaging with your members. We are still seeing clubs across the country have great success with events that excite and thrill members. The key is to find the hook that keeps them coming back. First, a little definition lesson. The term “events” once meant live events. Now events can be live, hybrid or virtual, and the winning combination is whatever works in your club. Typically, that means a good mix of all three. “Hybrid” is a term we are using to describe an event that is both live (in the club) and virtual, for those members who still do not feel comfortable joining in a live group event yet. It is predicted that soon we will no longer use the term “hybrid” because all events will be both live and virtual in order to accommodate all preferences. It will be the norm. This shifts the way we plan and think about events. We see this with clubs that have opened again for limited dining. Most are also doing the same menu for pickup and delivery as they are doing for the live event and we expect this to continue. 60
BOARDROOM | MAY / JUNE 2021
So, how do we keep our staff sharp and creative? One of the most effective “by-products” of the shutdown has been that out of necessity clubs found themselves cross-training staff in multiple departments. This provided a welcome change for staff and fresh ideas popping up in any given department as we had a fresh set of eyes looking at things. We can’t expect our staff to always be creative on demand, and an often-overlooked opportunity we have is to engage our vendors to help with collaborative ideas for events and offerings. Food purveyors, beverage suppliers, local event planners, entertainment companies and merchandise vendors are a great source of brainpower to help your team get creative and also bring a much-appreciated boost in business to your preferred partners. And, how do we keep our members engaged? Virtual events have become more “interactive,” and this is key. Rather than just sitting and watching events happen, it is extremely important to have a “high-touch” element to make your virtual event more “high-experience.” Something members pick up or have delivered to their homes before the event (food, beverage, décor, crafts, games) will add a much-needed level of detail that your members will appreciate. Even better if you include an unexpected “surprise element” in the pickup or delivery. Top trending ideas (both live and virtual): 1. Princess Anne Club in Virginia is hosting one of its first member mixers since reopening with a fun twist – every room of the club will have a different theme, coordinating with all of the holidays that members missed during quarantine. 2. Daniel Island Club hosted a food and wine festival with live music, cigar rolling, small plate food, wine, cocktail and whiskey stations. As the event was outdoors, it was a great way to spread out a group, especially with the different stations from which to choose. 3. Metropolitan Club San Francisco hosted a hybrid St. Patrick’s Day event. Members could pick up a traditional Irish dinner and then join in online for Irish dancing and games. 4. Cornell Club in New York has a full calendar of virtual events, including lectures, networking events and a wine tasting series that can be enjoyed from the comfort of members’ homes. By creating a series, they encourage members to join in more than one event. BR
STACKS 12
Sit down - Stand out 800.323.2234
gasserchair.com
BILL BOOTHE
TECHNOLOGY PERSPECTIVE
Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment. During his 28 years in the club industry Bill has assisted more than 400 private clubs. Bill can be reached at bboothe@boothegroup.com.
Tableside POS Is It Right for Your Club? All the while, the Millers are watching – Before we jump into a tech discussion of tableside POS and its pros and cons, let’s first make a quick visit to your club’s dining room and check in on a busy and starting to get a bit irritated – knowing that their order has yet to go anywhere. Not lunch shift. Mary’s fault but nonetheless an unhappy It’s a little after noon and the dining room is bustling. The Millers are seated experience for the Millers. at their favorite table near the far end of the room, where it’s a little quieter Fast forward to tableside POS. Mary than up front. They’ve already placed and received their beverage order. would have taken the Millers’ order right Mary, your lead server, arrives at their table to take their lunch order. then and there on her tablet PC, and their She’s using the traditional captain’s pad method of recording orders, with order would have been sent immediately to her special abbreviation system developed over many years of service. the kitchen for preparation. After a brief chat about the specials and soup of the day, the Millers No sidetracking to chat about the grandplace their orders. Mary thanks them and turns to head over to the service kids, no delaying to pick up another order. area where she can enter the order on one of two POS stations. Quick and easy right to the kitchen. But before Mary can take more than a few steps she’s intercepted by Sounds pretty good, right? But will this Mrs. Smith and her husband, back from a two-month stint out of town visapproach really work at your club? iting with family and friends. First and foremost, consider the venue. Mary and the Smiths go way back, and Mrs. Smith launches into a Tableside POS is a natural for poolside, lengthy story about the grandkids and all the fun they had visiting. Mary patio, deck, and other areas that are casual does her best to move on but the conversation with the Smiths lasts for and a distance from any POS stations. several minutes. It’s especially effective for less complex Finally extricating herself from the Smiths, Mary again heads toward the menus, which are quick and easy to enter service area only to be waylaid by Mr. Jones and his three golfing buddies. into the POS tablet. They are ready for another round, but with a few modifications, so Mary More formal settings are a different anspends several minutes picking up their order. imal. With the complexities of a full dinner menu, with endless mods and special prep instructions, tableside POS might pose a bit of a challenge to your waitstaff. There’s also the ambience factor: Do you really want technology at the table? One way around the issues with formal settings is to use a modified tableside approach: that is, go ahead and take the order on the captain’s pad but instead of heading all the way to the service area to access POS, the server simply steps off to the side and enters the order there. The ambience is not compromised, and the order still flies to the kitchen quickly without interruption. Bottom line: Tableside POS has the potential to speed up the ordering process at your club. How you choose to use it is up to you. B R 64
BOARDROOM | MAY / JUNE 2021
CASE STUDY | MCMAHON GROUP
McMahon’s Master Plan Update Process Phase NeXt Dining Facilities Open at Carmel Country Club According to our friends at Club Benchmarking, Carmel Country Club in Charlotte has increased its net worth more than any club in the country over the last 20 years. Working steadily from a strategic plan, the club has invested in all areas of the member experience, beginning with a well-known resort-style pool project and continuing through the renovation of both golf courses and practice facilities, the reinvention of the main member bar and dining spaces, rebuilding the tennis complex, and expanding the fitness center. This is a great financial achievement, but the real payoff has come in the form of a lengthy (3plus year) waitlist for membership, higher initiation fees, increased revenue and engagement, and enhanced member satisfaction. The results are a great example of how capital investment is at the heart of club success. Carmel recently completed a $21 million clubhouse renovation and expansion. In 2018, the Carmel leadership asked McMahon to work with the Long Range Planning Committee to update the club’s master plan. The plan had last been updated in 2013 and spurred development of the member dining areas. The latest plan, billed as Phase NeXt, includes a completely reimagined lower level of the clubhouse, including a new Gaslight Grill, a quick casual dining venue with an indoor-outdoor bar that spills out onto a redesigned patio with expansive dining and seating areas overlooking 66
BOARDROOM | MAY / JUNE 2021
the golf course. They also added the Post Market featuring Starbucks coffee, fruit smoothies, fresh pressed juice, and milkshakes amongst various grab and go items. The enlarged fitness center includes more space for equipment and classes, and the addition high-end cardio machines that are extremely popular. On the main level, the event side of the clubhouse was rebuilt, shifting the ballroom to ensure commanding views of the golf course and create a suite of techladen meeting rooms. The update process began with a series of member focus groups which identified demand for a new and different dining and social experience, something quick and casual and that made use of the expansive but underutilized lower patio. Golfers and members coming from other recreational areas tended to have a quick drink and leave as they didn’t feel comfortable going to the main level spaces in their golf and athletic attire. McMahon and the committee developed a plan for a new lower level to address those needs, and it is likely to set a new standard for club dining for years to come. Early reviews and activity are very positive, with evidence that this differentiated concept is expanding participation rather than shifting activity from the other spaces. If you want a poster child for innovation and relevant facilities, Carmel Country Club is it. John Schultz, CCM and the board have done a fantastic job. Every couple of years the club puts new capital to work. These projects create not only fun, they also create a relevant set of facilities and social and financial success. The conversation around club projects often focuses on costs and funding, but the Carmel experience shows how by increasing the value of the club you can create value for the membership. B R
ROBERT KRZAK Robert Krzak is president at Gecko Hospitality in Fort Myers, FL. He can be reached at (239) 690-7006 ext. 100 or via email at robert@geckohospitality.com.
CASE STUDY
How Country Clubs Can Keep Employees Engaged and Satisfied Here are eleven suggestions for country clubs to keep their employees enOne of the toughest terms for business leaders to grasp the definition of is employee en- gaged and therefore lower turnover and increase productivity: 1. Allow employees to pick their meal of choice from the club. Instead gagement. of simply giving a stipend for a burger or hotdog, let employees eat what the Employee engagement is a slippery members eat. Let them feel special and appreciated. phrase that eludes many in management 2. Offer laundry and dry-cleaning services for employees. Most of your because its definition is different for every employees are working paycheck to paycheck trying to hold everything tobusiness and in every industry. gether. Pay their laundry bill and watch how their loyalty increases. To keep an employee engaged at a fac3. Reward star employees with recognition for a job well done in front tory might require frequent breaks or per of their peers. Being the star for the day and the feeling they are apprecipiece incentives. For the stay-at-home ated increases engagement. employee, like we’ve experienced with the 4. Offer massages for employees. Utilize a local cosmetology school to recent pandemic, it might require more inprovide massages for your employees. Cosmetology students must provide teraction with headquarters and feedback the service for free as part of their curriculum. from managers. In other words, to achieve 5. Create a staff-inspired menu. Allow employees to submit a menu or employee engagement, business leaders drink item not normally on the menu and place the employee’s name next to must be creative, experimenting with outthat item, (e.g. Nelson Chicken Fried inspired by James Nelson). side-the-box tools and strategies. 6. Provide bus vouchers for employees who use public transportation—a relatively small cost that goes a long way. KEEPING COUNTRY CLUB EMPLOYEES ENGAGED 7. Car detailing. Hire a mobile car wash service and use it to provide a free According to the latest statistic from wash and car detailing for the employee who wins employee of the month. Do IBIS World, the number of people emthis when employees are reporting to work so everyone can see it. ployed in the golf courses and country 8. End-of-year employee picnic. Provide a picnic at a local park for all clubs industry in the U.S. declined -0.2 employees not working that day. Do it as many times as it takes to ensure all percent on average over the five years employees are included or on the day the country club is closed. between 2016 and 2021. The report also 9. Hospitality reciprocity – Partner with local restaurants, hotels, and stated that, “Over the next five years to resorts within your area. Set up a reciprocity system to where you can offer 2026, the golf courses and country clubs amenities offered at your club and allow your employees to enjoy discounts industry is expected to generate stable to those establishments who participate within your network. Not only will revenue due to rising per capita disposyour employees appreciate the perk but the collaboration between neighable income and consumer confidence.” boring businesses. In other words, more people will be 10. Dinner with the general manager – Networking and mentorship can joining country clubs and visiting golf rebe a little awkward at first, so break the ice with delicious food and great sorts, but will there be enough workers to support the influx of consumers? A recent conversation. 11. Quality of life / Work life balance - Equates to PTO and vacation Society for Human Resources Management (SHRM) article states that engagement and time which is the most impactful piece to the puzzle. In an industry where we productivity can be affected by social cohe- give so much of ourselves attempting to create memorable experiences for sion, feeling supported by one’s supervisor, others – down time makes it all whole. information sharing, common goals and These simple and inexpensive ideas when implemented will increase emvision, communication, and trust. Employees want to feel valued and respected; they ployee engagement leading to improved morale, increased productivity, and want to know that their work is meaningful, less turnover. B R and their ideas are heard. 68
BOARDROOM | MAY / JUNE 2021
We’ve added a little bling! If Forbes likes us, we bet you will too!
Winners based off over 5,400 recruiting firms and 26,000 nominations.
Thank you to our executive recruiters, research assistants and clients, we couldn’t have done it without you! 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.
Contact us today. We’ll connect you to your next awesome manager. (239) 690-7006 ext. 100
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.
CASE STUDY | STRATEGIC CLUB SOLUTIONS
What is Your Secret Sauce? The best recipes for club success include a secret brand, it will be impossible to provide a cohesive experience. Be sure to sauce. This is the something special that makes know these key components: • What makes your club unique and keeps members coming back? your club stand out from the rest - and keeps • What personality traits best describe your club and its members? your members craving more from the club. • What communication keys are used in marketing materials? Strategic Club Solutions has partnered • What are your best accolades or bragging rights? with hundreds of clubs around the country • What is the creative direction for all collateral and photos? and found the healthiest clubs are ones who • What are your brand standards or guidelines? know what their secret sauce is - and use it Involve your staff with this process, as they should know your brand and to their advantage. know your dining menu or your golf course. Once you have clarity on your Your secret sauce - your club’s unique brand brand, implement it across all marketing materials and every touchpoint. Look - needs to be served up consistently every at your website, social media, flyers, brochures, signage, and more and consider time. If you don’t have clarity on your brand, the following: you risk current and prospective members becoming disengaged from the club. DESIGN Is your design sophisticated, clean, and easy to THE PROBLEM read with branded headlines and colors? Do you Club managers tell Strategic Club Solutions have branded templates to make it easy for staff their brands are prestigious and prioritize to update new materials? attention to detail. However, some visual marketing materials lack professionalism and IMAGES Are you using real images featuring members do not portray this high brand caliber. This of the club? Can you replace stock photography creates a disconnect that waters down the or brand-cheapening clip art? Do your images value of their brand and confuses members tell your club’s story? and prospective members. Without brand alignment, clubs can sacrifice the first impression. If your club visual description over the phone doesn’t match what’s shown on your website, you risk confusion. If someone walks past immaculate landscaping, a grand entrance, and a smiling staff member, they will be primed for a high-caliber brand experience. If they pass a bulletin board with poorly designed, basic flyers featuring elementary cartoon clip art, their experience doesn’t match and is subpar. If you invest in creating a spectacular event but then market it with low-caliber materials, you bruise the effort. This lack of a consistent secret sauce leaves members and prospective members with a bad taste in their mouths. THE SOLUTION The first step is knowing the recipe. If you don’t have a handle on your club’s 72
BOARDROOM | MAY / JUNE 2021
COPYWRITING
Does your copy tell your story while inspiring and motivating? Do marketing materials include clear next steps or calls to action? Are you clearly providing all of the key information members or prospective members need? BRAND GUIDELINES Do your marketing materials follow your brand guidelines? Are you using a high-resolution logo file? Are your colors and fonts on brand? Do you have a style guide and consistently capitalize or not capitalize words like club and member? Defining your brand and ensuring all marketing materials are in alignment can be a daunting, time-consuming project. Partner with an expert like Strategic Club Solutions to make the process fun and easy while leveraging your talent. When you work with a professional, you’ll get professional design and marketing materials that reflect the sophistication of your club brand. A firm like SCS can handle all of your marketing collateral or create templates for your staff to use independently moving forward. You’ll get a recipe for a secret sauce that will keep members and prospective members hungry for more. B R
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
For My Next Act… Not long ago, I was watching one of my morning He showed how seismic forces are altering the way we learn, work, go-to financial shows when I heard a guest talking rest and are forging a different life pattern, which he named the Cyabout how we will be “popping in and out” of the clical Life Plan. While it would take a large book to list and detail all these seismic education world throughout our lifetime. forces, here is a capsulized version of what I deem to be the top three. Maybe it will be to change careers. Projections suggest that today’s college graduates • Living longer and aging better. It is no secret that in the U.S., will change jobs at least four times in the first and in most developed economies, life expectancy has risen. 10 years, while those in the Baby Boomer genIf you were born in 1860, you would have been lucky to see your eration will average 12 different jobs in their 40th birthday. By 1935, when Social Security was enacted, men were lifetimes. projected to reach 60 while women would make it to 64. Today, life Maybe it will be to learn or enhance proficienexpectancy is 79 years for men and women, a .08 percent increase cies in new skills for work. Remember the first from last year. time you tried to send participants into a breakFor the first time in history, there are five generations of consumroom on Zoom? ers. This means there are also five generations of your current and Or perhaps it will be to experiment with differfuture members and employees. ent talents we think we have or wish we had. Let us face it. How many of us have always • More time for leisure. With the constant, 24-hour barrage of wanted to play the guitar like Jimmy Buffet, fix up emails, LinkedIn, Instagram, and texts, it sure does not seem like it, a room like Chip and Joanna Gains, draw a carbut we are working fewer hours per week than ever before in U.S. toon like a Disney animator, or write a novel like history. J.K. Rowling? In January, the average working week for all employees on private Listening to the guest on that morning show, I nonfarm payrolls in the United States was at 35 hours. This is 16 found it interesting that he made the “popping in fewer hours than the 51+ hours our grandparents would have been and out” notion seem as if it were a revolutionary working in 1924. concept. It is not. Those 16 “fewer” hours equate to two traditionally full eight-hour Futurists have been writing about when we workdays. Put it another way, it equates to two more days during learn, when we work, and when we retire for which your members can enjoy their club. years. First, we go to school to learn stuff, then we • Knowledge is running amok. Futurist Buckminster Fuller congo out to work to use the stuff we learned, and cluded that human knowledge doubled about every hundred years finally we retire, forget all about the stuff and go until about World War II, when the rate of doubling shrunk to every on a cruise. 25 years. He called it the “knowledge doubling curve.” Childhood was for learning, adulthood was for Later, IBM predicted that by 2020, the Internet of Things would enworking, and old age was for sitting in a deck able knowledge to double every 12 hours. This gives credibility to the chair on that long-awaited cruise. claim that what college students learn in their freshman year will be This learn-work-retire pattern has been deobsolete by the time they are juniors. Yikes! scribed as the Linear Life Plan and brought to the It is no secret that human knowledge is growing at an exponential forefront by Ken Dychtwald more than 30 years rate, and we may reach a point where it increases faster than the ago in thinking about what will drive businesses human brain can retain it. (Enter R2-D2 and C-3PO.) – including our clubs – in the future.
74
BOARDROOM | MAY / JUNE 2021
While the past year has been a “glass half empty” on many fronts, it is also a “glass half full” on others, offering incredible possibilities for your club to “refresh, rebuild, and reignite. Benjamin Franklin said, “When you are finished changing, you are finished.” Well, the club industry certainly is not finished changing, and it certainly is not finished. I’m excited for the future. In fact, IQs in many developed countries have recently dropped. While there could be a myriad of causes for the decline, I once heard a quip that the reason they had dropped is because we do not have to remember anything anymore. If we do not know it or forget it, we can just “Google it.” We already live, not by the ABCs, but by the three As – Apple, Amazon, and Alphabet. Consequently, our members (and our staff) will be on a treadmill of continually needing to update “out-of-date knowledge with new knowledge in a continuous process of unlearning and learning.” As the past year has shown, technology seems to have accelerated these forces to a level of Mach 1, giving clubs the chance to “refresh, rebuild, and reignite” how they engage members, adding value to their membership. From virtual board meetings to outdoor dining pods, clubs have moved away from having to do something this way or that just because that is how they had always done it. It is also giving clubs the opportunity to build on their innovations. Two ideas: • Portal partners. Some clubs have already produced online segments by their chefs on how to prepare this dish or cook that, posting them on the club’s website for their members. Others have featured their bartender demonstrating his/her special way of making a perfect Manhattan cocktail. What about expanding the model and partnering with other clubs who have experts in a given field? A sommelier from one club. A chocolatier or pastry chef famous for his/her artistic desserts from another. And your club’s chef de cuisine, whose expertise in designing a breathtaking charcuterie board is well known. Your members – as well as those belonging to the part-
nering clubs – would have access to the online portal for the professionals from all the participating clubs. • Trainingcations. Clubs could take a page from hotels and resorts that transformed their ballrooms and meeting rooms into learning centers with upgraded Wi-Fi (and some hiring tutors) to attract parents forced to work from home and their children, whose teachers and classmates were existing on a small computer screen instead of in a classroom. They marketed them as schoolcations. Who would not want to head straight to the beach or the pool after Zooming all day? According to McKinsey, a global consulting company, about 25 percent more employees will potentially need to switch occupations than previously estimated. Could your club transform a ballroom or meeting room to attract members who have training or meeting needs? After all, we know that business travel is going to lag behind leisure travel. We also know that being in a different environment gives the mind a fresh perspective and enhances retention and creative thinking. And isn’t that what learning is all about? While the past year has been a “glass half empty” on many fronts, it is also a “glass half full” on others, offering incredible possibilities for your club to “refresh, rebuild, and reignite.” Benjamin Franklin said, “When you are finished changing, you are finished.” Well, the club industry certainly is not finished changing, and it certainly is not finished. I’m excited for the future. Your bottom line will thank you. B R
MAY / JUNE 2021 | BOARDROOM
75
Rick Snellinger BoardRoom’s Lifetime Achievement Recipient for 2020 By Lauren Gordon The H. Chambers Company, founded in 1899, was a family-owned business with a passion for providing superb design and unparalleled, white-glove service to its clients. Howard Chambers, whose business worked with a vast array of esteemed clients in the U.S. and abroad (including renovating the White House Library during the Kennedy administration), instilled a strong commitment to excellence in every aspect of his business, and strived to create a legacy that would long outlive him. In fact, Chambers hired only the most dedicated and talented people — and selected those in leadership positions whom he knew would “perpetuate his gem of a company” long into the future. In 1991, Rick Snellinger was selected from a plethora of candidates to do just that, and to help mastermind the ongoing business aspects of the H. Chambers Company. Over the last 30 years, Snellinger has helped guide the firm through extraordinary times, endured multiple recessions, created and led multiple offices, and devoted years of service to the private club industry through his guidance, leadership and commitment to education. To further the company’s reach and complement its interior design expertise, Snellinger began discussions that ultimately resulted in the acquisition of an architecture firm that later became Chambers Architectural Associates — the first major step in providing turnkey, holistic services under one roof. After 13 years with the H. Chambers Company, Snellinger was promoted to president in 2004, with the charge of developing a platform that would respond to the industry’s newly conceived need for the “Club Master Planning” segment. Five years later, in 2009, Snellinger was named president and CEO. 76
BOARDROOM | MAY / JUNE 2021
Since that time, he has guided the firm to become a leader in the industry, consistently placing the needs of private clubs, and the desire to create an exemplary member experience, at the forefront of everything the H. Chambers Company does. Snellinger’s philanthropic spirit and commitment to education has led him to speak at national conferences (as well as local industry and chapter events) to share his passion for enhancing the overall club experience and embracing cutting-edge trends. With an eye toward the future, Snellinger has also pursued the firm’s expansion with new offices in Dallas, Minneapolis, Naples and Washington, DC to better serve our loyal and growing clientele. In recent years, his efforts have earned him a number of awards and acknowledgements. He was a finalist for SmartCEO’s Circle of Excellence in 2015 and was named one of the Top 10 Individuals Shaping the Future of Private Clubs by Golf Inc. magazine in 2017. BoardRoom named Snellinger a Private Club Influencer in 2019 and selected him as one of two Lifetime Achievement Award recipients for 2020. Last year, Snellinger’s strong leadership not only guided the company through an unprecedented global pandemic
but also served as a guiding light to the industry and the firm’s clients across the country. He shouldered the burden of leading one of the oldest and most recognized design firms in the country with stealthy resolve to keep projects moving forward so our clients could continue providing a “home away from home” to their members. His positive attitude and optimism are a beacon of hope, reassuring those around him that clubs are a safe haven for their members through this difficult time, and will continue to be a steadfast part of members’ lives in the months and years ahead. Snellinger has devoted the past three decades of his life not only to the company’s continued longevity but also to the healthy and progressive growth of the private club industry and the people that make it special. His strength, drive and determination are an inspiration to all who work alongside him — and he is certainly perpetuating the legacy of a firm with such rich history to ensure its future is as impactful. Chambers would be proud. B R Lauren Gordon is director of creative services/associate principal with the H. Chambers Company. She can be reached at lgordon@ chambersusa.com
MAY / JUNE 2021 | BOARDROOM
77
Tim Schantz
Recognized For Achievements With John Fornaro Impact Award for 2020 By Rob DeMore Editor’s note: The John Fornaro Industry Impact award recognizes and celebrates an individual who has demonstrated tremendous vision, leadership and innovation in 2020. Unlike other awards, The John Fornaro Impact award is based on what matters: the impact their proposals and ideas have had on our industry, and not just the existence of the programs or ideas.
As a longtime colleague of the recipient of the first-ever John Fornaro Impact award, I have the privilege of sharing with you the Tim Schantz I see, and his impact during my nearly two decades at Troon. Before joining Troon in 1998, Tim spent five years in the California offices of the international law firm Latham & Watkins, followed by three years as vice president, senior corporate counsel for the Phoenix-based lodging company Doubletree Corporation. Tim is a licensed attorney who received his Bachelor of Arts from the University of Colorado and his Juris Doctor from the University of Kansas. He serves on the board of the National Golf Foundation (NGF). I know these things primarily because I have been around so long and all of this information is on our website. I cannot think of one instance where Tim and I have ever discussed this information. Actually, the more I reflect, perhaps the reason we have never discussed any of this is that Tim knows I have nothing to contribute to any of those experiences. Honestly, that makes me smile to finally realize. In any event, what is not on our website and what Tim and I have examined was his storied career at Le Peep. Before anyone’s imagination runs away, Le Peep is a mostly breakfast restaurant in Boulder, CO. If you were a patron in the mid to late 1980s, there is a healthy chance our current chief executive officer washed your dishes. I also know the pride he takes to this day about his four years in Boulder. Not only did he earn his degree, but he also climbed from dishwasher to waiter during those Rocky Mountain high wonder years. 78
BOARDROOM | MAY / JUNE 2021
To this day, I think that experience has been incredibly formative in how he approaches the people and the work done daily in our industry by everyone in the organization. Each team member is important. So much so that if you look at Tim’s LinkedIn profile, what you do not see is a glamour shot by his professional photographer wife, Mara, nor a triumphant, windswept high profile in courage moment captured during his career. Instead, what you will see is a faded picture of a college freshman washing dishes. Master of the Hobart, chief of nothing yet. We don’t have a Le Peep in Scottsdale, unfortunately, but its absence has made Tim available to our organization here instead. Today, Tim serves as chief executive officer of our company, succeeding our legendary founder, Dana Garmany, on April 1, 2018 in one of the all-time best transition dates in history. However, Tim’s influence on our company and industry has been profound long before April Fool’s Day in 2018. When Tim joined our company in 1998, Troon was a much smaller company, with fewer than 15 clients. We did not have a private club division since there wasn’t much to divide. Tim’s energy and advocacy helped launch Troon Privé, our private club division, the next year in response to market interest in hiring our firm to manage private clubs. The thesis was (and is to this day) that our company could provide professional management services beyond a self-managed setting. Tim was part of an executive team that recognized that none of us in this industry are successful as an island. Success for each location requires a collection of specialized intellectual resources, not just any one individual. To date, there is not one individual who is an expert and available to fully engage all areas of a club, such as agronomic science, hospitality, human resources, recruiting, legal, risk management, insurance, sales, marketing, strategic planning, fitness, finance, tennis, clubhouse construction, design, sanitation, caddies, and, last but never least, pickleball, to name the obvious. Consequently, over the last 30 years, our firm has been designed, invested and cu-
rated to provide dedicated resources to each of these areas and spaces for our managed clients to keep up with the demands of an ever-changing club and world landscape. Tim and Dana have guided the acquisition or creation of nearly a dozen companies and operating divisions, thereby nearly tripling the size of our company in terms of client relationships and resources over the last six years. But from our first private club engagement in 1999 in South Carolina until today, the challenge we yearn for is to use our collective experiences and relationships to help our clients and teams. As a third-party management company, we are able to provide a unique vantage point in the industry to recognize and anticipate macro and micro trends. By bundling our resources in a single organization, Troon provides an aligned and never orphaned counsel and employment structure. Today, in the private space alone, Troon Privé supports over 120 clubs and nearly 50 member-owned clubs (including 10 BoardRoom Distinguished Clubs). We do not lease or provide financial backing in any of these relationships. Rather, we have built lasting relationships over the years to build this portion of our portfolio one client at a time. Each club has a unique vision of success and our role is to find the path and deliver. Pretty straightforward business model, really. Part of the reason our work is uncluttered lies in the tone of Tim’s leadership and messaging. We do not drift from what is important and this fuels our success. As he often messages, in essence, we are an intellectual firm committed to hard work, positive energy and kindness. In often highly politicized environments in this industry, the comfort of having clarity in mission of advocacy of the right thing for others is something I personally never take for granted. I am also grateful to share that Dana and now Tim value humor in our culture as the alpha leaders in our company. Not one of us gets to be too important to bore others incessantly. Too many smart, funny people to allow people to flirt with themselves. So with that, no more words. Just a picture. B R Rob DeMore is president, Troon Privé. He can be reached via email: rdemore@troon.com MAY / JUNE 2021 | BOARDROOM
79
A Celebration of Collaboration And the Importance of Relationships By John Komes Twenty-five years is a long time for a publication to be in business, especially in this day and age, and I extend my congratulations to John Fornaro, Keith Jarrett, and all the other people who have made BoardRoom magazine such a success and are celebrating BoardRoom’s 25th anniversary this year. Over the years I have known John, he has introduced me to the world of private clubs and the importance of delivering the best club experience possible. These are lessons I’ve been able to apply to my own wine business, which, like the world of private clubs, is focused on the needs and desires of customers. The “Celebration of Collaboration” theme is appropriate for both of our industries, to which I’d add the “Importance of Relationships.” Here’s a story I like to tell. One day in the early years of Flora Springs, I was in my office at the winery when the tasting room called to tell me that a man had just bought seven cases of our Trilogy wine, and he was asking if he could meet me. I would have gone to shake the hand of anyone who’d bought one case of wine, let alone seven. As I came down the stairs, he was waiting. “I just wanted to say thank you,” he said. But instead of shaking my hand, he gave me a hug that just about squeezed the air out of me. Thank me? He had just bought 84 bottles of our flagship red wine. I was the one who should be thanking him, I said. He explained: “Your wine has made me a success.” Vince explained that he was a Wall Street headhunter, and since discovering Trilogy, he had begun serving it to clients at parties. “People go crazy over it,” he said. “And I really get to know who they are.” Then he asked me, “Do you know who drinks your wine?” It was an interesting question. 80
BOARDROOM | MAY / JUNE 2021
At that point, I knew many of the industry people involved in wine, mostly salespeople and distributors. But did I know who was opening a bottle at their dinner table or ordering a glass at a restaurant? Not really. “You have to get to know these people,” Vince continued. “You need to tell them your story.” There was certainly merit in Vince’s idea. I began thinking about ways to increase our contacts with potential customers, including at private country clubs, where we had already made inroads. Through a mutual acquaintance, I met John Fornaro, who became a fan of Flora Springs wines and a friend who introduced me at Distinguished Clubs winemaker dinners across the U.S. At these events I met managers as well as influential members. It was a win-win, a chance for me to introduce Flora Springs to people who were interested in wine, and beneficial for the clubs and members because interest in wine was growing, especially among high-end consumers. Over the years, through John and Distinguished Clubs we have met and become friendly with thousands of members, both at club events and later at our Napa Valley winery when they come to visit.
I’m guessing that most of you reading this have met Richard Tiedemann, our director of winery relations. If there’s anyone who knows about the importance of relationships, it’s Richard. The emphasis on personal connections continues to be a key component of our marketing outreach at Flora Springs. We remain a family business focused on quality not necessarily quantity, but our wine clubs, Great Tastes and Preferred Palates, have thousands of members. Events at the winery, like our annual Trilogy Release Party, attract hundreds of wine lovers, as does our Five Cabs & Five Cuts Wine Dinner, which features our Single Vineyard Cabernets paired with different cuts of steak. Our family has hosted numerous luxury cruises to the Mediterranean and elsewhere, where we pour Flora Springs wines to an audience that is, shall we say, captive. Then came 2020. The wine industry has always faced challenges: droughts, fires, destructive pests, rain at the wrong time, untimely frosts, not to mention Prohibition. But nothing in recent history impacted us like the coronavirus pandemic, which hit with almost no warning, shutting off tourism, canceling in-person events, and closing tasting rooms and restaurant dining - all essential elements of robust wine sales. At Flora Springs, we pivoted swiftly to maintain sales while protecting the health of our employees. We knew we had to find new ways to reach people. We turned to the internet, using Zoom not only for meetings with sales representatives but also to connect with our club members and mailing list customers. I used to fly around the country for wine dinners; now our tasting room staff and I were talking to people through a computer screen as we held online tastings and seminars. When visits to the winery were halted, we began offering curbside pickup for sales, and we found ways to ship wines as affordably as possible to others further away.
We expanded our email outreach and increased our social media presence, working with Instagram and other “influencers” to communicate with new generations of customers. Did it work? Fortunately, the number of people who wanted to enjoy a glass or two of wine while sheltering at home skyrocketed. In 2020, the wine industry reported $3.7 billion in direct to consumer (DTC) sales, a 27 percent increase over 2019. It was the largest, single-year increase in DTC volume ever recorded. And because Flora Springs already had a healthy head start with two robust wine clubs and longtime customers, we, like some of our fellow wineries, were able to quickly take advantage of this increase in the DTC channel. We maintained and even strengthened close relationships with our customers, except instead of shaking hands, our interactions became virtual. Looking ahead, with the prospect of the pandemic coming under control, we are building on what we learned in 2020. When our tasting room opens and we’re able to conduct in-person events, we’ll be ready, with plans to hold wine club member celebrations in major cities around the country. Still, while I look forward to mingling with customers in person again, we won’t abandon our online and social media efforts. It’s a simple way for people to connect with us and vice versa, and a great way to get to know our ultimate customers, your club members included. What is the takeaway for Distinguished Clubs? It all goes back to that long-ago conversation with Vince, a man who knew about the importance of relationships, and our win-win relationship with John Fornaro and Distinguished Clubs. While virtual tastings and online sales are working, I still believe a personal relationship is the best way to sell wine. I am looking forward to a better 2021, to sitting down with you to enjoy a glass of wine. As winemakers, we always have new challenges to face, but when we can get out and talk about our wines, and when we can hear from customers how much they enjoy them, it makes everything worthwhile. It’s the same with Distinguished Clubs. Everything is better with a little bit of camaraderie. An empty club room is like drinking alone. And as I have always said, I’ve never had a great bottle of wine by myself. It’s the company you keep that makes it interesting. B R
John Komes is proprietor, Flora Springs Winery, St. Helena, CA.
MAY / JUNE 2021 | BOARDROOM
81
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.
Have You Had Your Orientation? If you have not experienced your club’s orientation yet, you may already be behind. Depending on when your board changes, if you have not had your orientation, you are already behind. I say this because the majority of clubs transfer power to a new leadership in February, March and April. The good news is it’s not too late. A thorough orientation is beneficial for many reasons. It is an initiation to board service; an introduction to the organization, its mission, and programs; a clarification of future time and financial demands; an opportunity to get to know other team members; and a chance to form an educated foundation for the coming years on the board. It is a chance to speed up the learning curve of new board members and get them quickly engaged in the board’s activities. It ensures that every member is functioning within the same framework and with the same instructions. Orientation benefits the board as a team by providing an official launch for new collaborations and relationships. Some boards organize a full retreat — lasting several hours to more than an entire day — to cover all aspects of orientation. This approach may be too demanding for some boards whose members are spread thin and who already commit themselves to attending regular board meetings. Additionally, for any board, it may be information overload in a too short time span. This is why we developed BoardRoom Institute. It is a world-class interactive experience. It offers a good online orientation to club issues and processes. It explains the boards fiduciary responsibility, conflict of interest, ethics, sexual harassment, the cost of micromanaging and much more. We have more than 45 videos that your board members can watch at their 82
BOARDROOM | MAY / JUNE 2021
leisure, at home, on a flight or in your boardroom. Check out our education platform and its contents at www.boardroominstitute.com. Our multi-million-dollar system will deliver, track and measure your board’s knowledge and understanding. We are adding a new section for podcasts from industry experts, and our Vault system is a plethora of information. Board orientation is so important, and I truly hope your club has one. We also offer in-person orientations. While they are a fantastic way to provide an orientation, our online platform allows for board members to refer back to ideas on how the board works, what their role is and when they are overstepping their boundaries. Recently, I attended a board meeting and provided an orientation. Nine times out of 10 the board members that say they can’t stay are the individuals that need it the most.
It is important to have an organized and efficient orientation. BoardRoom Institute is the only online orientation that delivers, tracks and measures your boards knowledge. Let me know how we can help you sleep better at night knowing your board understands their role. The board meeting I attended was as unconventional as I have seen. No one was in charge and there was a challenge for the president’s role. The two most vocal board members were not eligible to be president — but you could tell they wanted the role. They were the two that left before the orientation. I always ask a group if they have served on a 501(c)3 board and many of them raise their hands. I then ask if they have served on the board of a 501(c)7 organization and several don’t know that many private clubs are 501(c)7 organizations. There is a difference between the two boards. This board spent three hours discussing historical information. I refer to historical information as information that is more than two months old. This information (minutes, financials and routine business and reports) should be included in a consent agenda and can save anywhere from minutes to an hour of important time. It is important to have an organized and efficient orientation. BoardRoom Institute is the only online orientation that delivers, tracks and measures your boards knowledge. Let me know how we can help you sleep better at night knowing your board understands their role. BR
CONTEXT
: a turf care center provides safe, organized year-round equipment and
materials storage for state-of-the-art grounds. It’s par for the course. 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
MAY / JUNE 2021 | BOARDROOM
83
JERRY MCCOY
WINNING STRATEGIES
Jerry N. McCoy, MCM, is the president of Clubwise, LLC, a consulting firm specializing in strategic planning, master planning, operational audits and governance issues. Clubwise is the 2017/2018/2019/2020 Strategic Planning, Capital Funding and Facility Enhancement Company of the Year. Jerry received the Lifetime Achievement Award for BoardRoom magazine in 2018. He can be reached at www.clubwiseconsulting.com or CMAAMCM@msn.com
A Board’s Statements on Ethics, Conflict of Interest and Confidentiality Don’t avoid these subjects
Stop right now and think. This subject may be boring, but it is critically important. Too many clubs don’t even address these subjects. However, the best-run clubs are all over these issues. Let’s review. A club board member has been chosen to direct the affairs of the club. The future of the club depends on the judgment and commitment of the unpaid volunteer leaders who serve on the board. Many great clubs have adopted tools that help emphasize the appropriate conduct of a board member. In the last issue of BoardRoom, we discussed how board members need to support the board and operate as a unified front. The code of ethics, conflict of interest and confidentiality policies provide guidelines for presenting a unified front in all club governance issues. Each of these three policies gives guidance to how board members should act. As mentioned in previous articles, a member’s success on the board is directly related to the content of his/her character. Too often club boards do not have such policies, and in many cases never even discuss the topic. Recent surveys have shown that less than 20 percent of clubs have such policies. So, why are they important? One of the biggest problems in our industry can be a lack of trust between the member owners and the volunteer leaders elected to the board. Any policy a club can institute that will help build trust will have a positive impact. These three tools can do that. CODE OF ETHICS The Director’s Guide for Understanding Club Governance identifies eight ethics issues for consideration. They are: 1. Represent all people served by this organization 2. Not use the organization, or your service on the board, for your own personal advantage or for the individual advantage of your friends or supporters 3. Keep confidential information confidential 4. Approach all board issues with an open mind 5. Be prepared to make the best decisions for the whole organization 6. Do nothing to violate the trust of those who elected you to the board or those you serve 7. Focus your efforts on the mission of the organization and not on your personal goals
8. Never exercise authority as a board member except when acting in a meeting of the full board or as designated by the board.
Also, plan to attend every meeting of the board. Your presence is critical to the board’s efficient and effective functioning. Conflict of interest policy: A conflict of interest policy should: 1. Require those with a conflict (or who think they may have a conflict) to disclose the conflict/potential conflict 2. Prohibit interested board members from voting on any matter in which there is a conflict. Most clubs have a bylaw that says: “The board of directors shall not permit any part of the net earnings or capital of the corporation to inure to the benefit of any member, trustee, officer, director, or other private person or individual.” Therefore, a key to conflict of interest is financial gain of any kind. Occasionally a board member may be able to provide goods or services to the club in a better or more effective manner than another retail establishment. In that case, both the board member and the club may benefit from such an arrangement. However, the board member may not vote on any issue regarding that arrangement. The problem with such an arrangement is that when it is time to dissolve it there may be political issues at play. It is best to avoid such arrangements if at all possible. There are all kinds of examples of these problems. REAL EXAMPLES • The general contractor of the new clubhouse was a board member. Holding his feet to the fire on construction issues had some difficulties. • A board member handles the club insurance and when it came time for renewal there was complication with the bidding process and bad feelings occurred. A more common conflict of interest occurs when a club is prioritizing capital expense and a board member is only representing their small constituency’s opinions, rather than representing the needs of the full club. This can happen regularly. • A president’s wife encouraged him to divert capital funds from a needed area to one of her pet projects. So, he pushed her project through over a much more logical use of funds. SEE WINNING STRATEGIES | 107
84
BOARDROOM | MAY / JUNE 2021
MAY / JUNE 2021 | BOARDROOM
85
MIKE PHELPS Mike Phelps is principal and co-founder of Pipeline, a brand marketing agency specializing in private clubs and communities. Learn more at www.pipeline.agency
MEMBERSHIP COMMITTEE
What Wealthy People Have in Common Besides having a lot of money, what do wealthy people have in common?
It’s an established fact that a person who can’t set aside a few dollars each It’s not intelligence or education. The world is littered with unrewarded gemonth from a $50,000 annual salary will niuses – waiters, clerks and Uber drivers with master’s degrees and Ph.Ds. find it equally impossible to set aside It’s not conservatism, courage, luck or wealthy families. a few dollars from a $500,000 annual It’s not even passion, instinct, timing or greed. salary. The single characteristic that rich people tend to have in common is an unThe average American thinks ahead usually long-time horizon. exactly one paycheck. We know what In other words, wealthy people accumulate wealth because they think further ahead than the rest of us. Research indicates that the length of your time must be paid with the one that’s coming, and we have a plan for what to pay with horizon is the one characteristic that most accurately predicts where you will the next. Needless to say, this is not a land in the socioeconomic strata. plan for building wealth. This is a plan Ask Warren Buffett how he chooses investments and he’ll say, “You don’t for being average. need tons of IQ in this business. You do not have to be able to play three-diOkay then, besides having a full memmensional chess. Successful investing takes time, discipline and patience. bership, what do successful clubs have Nobody buys a farm based on whether they think it’s going to rain next year – they buy it because they think it’s going to be a good investment for the next in common? Bingo. 10 to 20 years.” An unusually long-time horizon. Wealthy people routinely plant seeds that won’t bear fruit for years. But Successful clubs routinely plant counter to what you may be thinking, wealthy people don’t share this charseeds that won’t bear fruit for months, acteristic because they’re rich and can afford to think ahead. They become or years. wealthy because they have this characteristic. When the market slows down, they don’t overreact. They don’t panic. They don’t rewrite their mission, vision and values. They don’t change their story. They don’t instinctively discount initiation fees. Rather, they make long-term adjustments. They think strategically. They continue to invest in their brand. When the market picks up, they don’t overreact. They don’t rejoice. They don’t rewrite their mission, vision and values. They don’t change their story. They don’t instinctively raise initiation fees. Rather, they make long-term adjustments. They think strategically. They continue to invest in their brand. When it comes to brand strategy, the average club thinks ahead exactly one paycheck. How far have you been thinking ahead? B R 86
BOARDROOM | MAY / JUNE 2021
TED ROBINSON Ted Robinson is a partner with Private Club Associates a boutique club and golf management firm, and can be reached at (478) 741-7996 or via email: tcr@privateclubassociates.com
MEMBERSHIP COMMITTEE
Recruiting Club Members to Your Membership Marketing Team “I can make a difference.” Margaret Mead “It is my civic duty.” John F. Kennedy “Be a part of something bigger than yourself.” Unknown In the January/February 2021 issue of BoardRoom, we discussed recruiting your club’s department managers to your membership marketing team. Department managers help you “close” the sale. They can reinforce your club’s ability to satisfy the needs and wants of the prospective member in any specific area (golf, tennis, agronomy, food, wine, art, fitness, décor). Current club members are the best at “identifying” prospective members and “making the approach” subtly and effectively. We all know member referrals are the most productive source of potential members. So, how do you go about recruiting active club members to your membership marketing team? It requires an understanding and respect for what motivates people to volunteer in general and to specifically help “sell your product.” In almost every club there is a contingency of members who want to help. What’s in it for them, you may ask? In researching why people volunteer, the following were identified as reasons for serving on the club’s membership committee: • “The club is important to my family and me” • “Need to make an impact” • “Feeling a part of and giving back to the club that has given so much to me” • “Having a sense of accomplishment” • “Meeting new people” • “Sharing knowledge” • “Having fun.” Members should be recruited to assure diversity – diversity of age, gender, interest area (membership type – golf, tennis, foodies, fitness, swim team, etc.), new members, and longtime members. Success will be measured, of course, by the flow of new members – a rising dues line, and also by committee member longevity, and an increasing flow of volunteers. Pulling together a successful and effective membership committee that’s headed by the membership director and includes the club’s department heads and a group of dynamic and bright members will only be accomplished by following a well-thought-out strategy.
First there should be a committee mission statement that describes the committee’s reason for existence. Next is the membership committee job description (for a complimentary sample, please contact Ted Robinson at tcr@privateclubassociates.com). Of critical importance is committee member orientation and training. People must be allowed to succeed and that can only happen if they know what they are supposed to do and have the tools to do it. You must moderate regular but not too frequent committee meetings and you will be judged by the quality of your meetings, as well as your one-on-one time with committee members. Members should expect to be held accountable for assigned tasks they accept. With the mission statement, job description, an understanding of the club’s vision, mission and brand position, and effective training, the committee can determine the SMART (Specific, Measurable, Achievable, Relevant, Trackable) annual admission goals, which must mesh with the club’s consolidated budget. If you have recruited, trained and motivated your team well, the resultant synergy should provide a dynamic and successful annual membership marketing plan. B R
MAY / JUNE 2021 | BOARDROOM
87
RYAN MAIONE Ryan Maione is president, MembersFirst. He can be reached via email: rmaione@membersfirst.com .
MEMBERSHIP COMMITTEE
Digital Onboarding
Set Your Members Up for Short and Long-Term Success The new member experience begins before able, important club events, and the contact information of key club managethe ink is even dry, or in today’s world, be- ment staff and the board of directors. Learning club procedures can often be more engaging if they are shared in a fore the digital signature is received by the video that includes the necessary steps. membership director. Dedicating a section of your new member page with how-to videos will go a In 2020, we changed the ways we long way in making new members feel confident and comfortable during their market to prospective members, fastfirst months at the club. tracked the use of virtual interviews and You’ve most likely already created this content in your member handbook; online club tours, and put more emphait’s a matter of converting it and optimizing for a digital format. sis than ever on connecting with prosUsing the power of automation, you can schedule a series of emails that pects through digital communications. can be sent to your new members at key intervals during their introduction Onboarding a new member is a crucial to the club. step towards building club loyalty. Much Someone has decided to join your club and it should be celebrated. Reinlike with a new employee, onboardforce the new member’s decision by sending a celebratory welcome email full ing needs to make the new member of the spirit that makes your club unique. This message can come from the feel welcome, educate them on club general manager, president, or another key individual at the club. processes and traditions, and get the For clubs that want to take it to the next level, the email could include a welmember active in club life as soon as come video with a personalized club tour and welcome messages from other possible. club members. However, often overlooked is the opDuring the first few weeks, additional automated emails can be sent consistportunity that an effective new member ing of ways to engage the member and encourage participation in events or orientation can have on future memberamenities. ship marketing initiatives. An invitation could be sent from the head chef to come in for an appetizer By getting your members off on the on the house. right foot, you increase the likelihood Or the head golf professional could invite the member to come out for a golf that they will become your future orientation that would include how to book a tee time and a 10 percent disclub promoters, providing testimonicount on club branded apparel. als and referrals that you can use in At the one-month mark, it would be a good idea to send an automated sursocial media posts and other marketvey to your new member to ask about their experience. If there are issues, you ing materials. want to know about them as soon as possible. Because digital onboarding is streamCheck-ins at the six-month and one-year marks will give you a good indicalined it makes what was once found tion if the member is a potential candidate for a testimonial or referral. in the member handbook dynamic, We all hope that 2021 will bring a full return of the vibrant in-person club interactive, and measurable for future life that makes being a member so special. improvement. Virtual interviews and events could still have a purpose in the short-term A digital onboarding strategy starts but using the digital tools you have available to enhance the new member onwith your most important digital marboarding process will be around for the long-term. keting asset, your club website. With membership requests expected to rise, automated, easily accessible Do you have a dedicated space for information will play a part in turning new members into long-tenured club new members? You should, and this promoters. B R page or section should include “Things to Know”– club rules, resources avail88
BOARDROOM | MAY / JUNE 2021
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
MAY / JUNE 2021 | BOARDROOM
89
STEVE GRAVES Steve Graves is president and founder of Creative Golf Marketing. He can be reached via email: steve@creativegolfmarketing.com
MEMBERSHIP COMMITTEE
Boredom Saved Golf Courses and Private Clubs in 2020 But What Happens When Boredom Subsides?
The National Golf Foundation (NGF) recently shared the following and extraorBoredom is not typically a good emotion. It can lead to negative behavioral issues dinary statistic with the industry. “From June through the end of the year, the surges in golf play yielded about 75 million incremental rounds compared to and habits. the same period in 2019.” Adults who are prone to boredom have That is a surge in golf play not seen since the phenomenon of Tiger Woods an increased risk of depression and anxiin 1996. ety and a diminished sense of satisfaction The NGF reports that course closures are down and green fee revenue is way up. and purpose. Private clubs have their members complaining that they have too many members Boredom tends to lead to a lack of and guest play is verboten. physical activity and a lack of attention to A 1998 Wall Street Journal article mentions that Bill Gates made it known he proper eating habits (hence the COVID-19 would love to be a member of Augusta National Golf Club. The story says, “He weight-gain phenomenon). hasn’t actually asked to be admitted because that would be bad form as memberEssentially the entire United States ship at Augusta is by invitation only.” population was “sheltered at home” beginIt is widely reported Gates is now a member of Augusta National. If he is, it is ning March 15, 2020. Clearly, COVID-19 because he joined on their terms not his. In other words, private clubs were known produced an enormous amount of anxiety as “don’t ask us we will ask you.” and fear for all American consumers but That hands-off approach was well known to affluent consumers, and you didn’t ultimately boredom set in and “looking for dare make the mistake of simply calling or showing up at a private club. Until something to do” became an obsession. COVID-19 and boredom set in. Everyone was essentially forced into Boredom produced another interesting phenomenon...courage. As Gates “staycation” mode and looked for anything discovered, private clubs are recognized as “membership by invitation only” and everything they could do to be happy organizations. in their own hometowns. The choices However, affluent consumers that were sequestered at home became emboldwere extremely limited due to government ened and began reaching out to private clubs about their golf availability, private mandates and pure unadulterated fear swimming pools and racquet sports. Can you believe that? When boredom is combined with fear, And what happened? the search for safe environments becomes As Kris Butterfield, president of the PCMA and membership director of limited for affluent consumers. Bethesda Country Club, will tell you, “Suddenly people that had never before conThe choice that everyone gravitated to sidered joining a private club were drawn to the personalization of service and the in 2020 was golf. For the golf and private safety and security of a private membership base.” club industries, boredom was an absolute She went on to say that “when sports and school activities were canceled, these godsend. families quickly discovered the numerous amenities and activities that private Let’s be totally honest. Golf courses and clubs offered” and tradition be damned, they just picked up the phone and called private clubs did nothing in 2020 to enjoy for joining information. the “off the charts rounds of golf” success Creative Golf Marketing performed a marketing consultation with The Club that is being discussed in every state in at Pasadena in Monterey, CA. Our marketing program “kicked off” in January of the United States except for Hawaii. 2020. To say that membership sales stalled in March and April would be an underWhat started in March of 2020 as a perstatement. ceived disaster for private clubs and golf However, once golf became an “accepted recreational activity,” golf membercourses became the surge of all surges in ships exploded and by the end of 2020 the club enjoyed 203 new members. That interest and rounds of golf played beginis a 67.7 percent increase in membership. ning May 1, 2020. Sometimes being “the All of this occurred with the prospective members unable to enter the clubright spot at the right time” ends up being house of this extraordinary club. New member prospects could play golf and a strategic plan that you didn’t design but ➤ end up executing nonetheless. 90
BOARDROOM | MAY / JUNE 2021
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
Connecting with Members Through Video Admirals Cove has rightly earned a reputation as being one of Florida’s most outstanding private residential communities. Its exceptional amenities fit seamlessly within picturesque backdrops that create a vivid palette of colors so attractive to members. While you could be forgiven for believing that such an inviting environment evolved naturally, paradise most definitely comes with plentiful quantities of planning, purpose and people. That’s why the leadership at the Jupiter-located Admirals Cove was incredibly successful in responding to challenges stemming from COVID-19. In nearly every aspect, the global pandemic forced organizations of all kinds to rethink how they operate. From major changes in daily routines to services they provide and newly introduced protocols – with the health of members and staff always first in mind. All too often, though, skepticism is the enemy of positivity. In order to combat ambiguity, effective communication remains essential. The method used to circulate a message is as critical as the content. With many of the “old ways” finding diminished relevance, adapting communication strategies to audiences’ consumption tendencies take on greater importance.
As the impact of COVID-19 changed over the past year, so did even the best of preparations. A frequently asked question became: How can a message avoid getting lost or misinterpreted in the ocean of multimedia noise? Aiming to be proactive, over the last 12 months, Admirals Cove addressed unease by partnering with VideoBolt.com to develop more than 30 videos focusing on COVID-related issues and other areas indispensable to the business. Videos were distributed through numerous platforms, including the members-only section of the club’s website, email marketing campaigns and social media. Admirals Cove was able to exceed the expectations of membership by engaging it with high-quality and informative productions. “Video, for us and our club, has been a home run,” said Joe V. McCart, president of Admirals Cove. “There is tremendous ROI because of the deep connections and transparency we can highlight. The polish on the videos is great and makes it more memorable. They are much more dynamic than text and easier to digest.” Admirals Cove discovered that video enabled it to connect better with members, informing them consistently on a multitude of topics. Despite the laidback Floridian life, like anywhere else, time is a luxury not to be taken for granted. Investing in video means any organization can maximize views, while also grabbing attention. “The members love the videos,” remarked Brett Morris, general manager and chief operating officer of Admirals Cove, who also noted the club has seen a much higher open and engagement rate with video rather than text. “It makes it so much easier to communicate with them about everything from construction projects to everyday events. “We also use them very effectively in our email marketing campaigns. We know our members are more likely to click play on the video from their smartphone rather than try to read a newsletter, and the numbers back that up.” Video is the most direct way for businesses of all sizes to communicate as personally as possible. The expense of creating an in-house production team can be cost prohibitive, but the need to connect through video grows daily. “We want our people to work smarter, which is why we outsource our video content to VideoBolt.com,” Morris concluded. “They take care of the entire process. From a cost perspective, since it frees up our marketing team to do other things, it’s a big savings.” B R
enjoy limited outdoor and takeout food options, and that was enough for them given their alternative of “shelter at home and be bored.” The oil industry has enjoyed its ups and downs over the decades. I recently saw a bumper sticker in Oklahoma that read “Please Lord give us one more oil boom and we won’t mess this one up!” Rather humorous and thought-provoking for the golf and private club industry to consider. I am beginning to wonder if the golf and private club industry won’t begin to lose some of these new golfers and members when “staycations” turn back into “vacations.” There is a strong indication that boredom, fear and the search for safety is on a strong path of elimination (perhaps by the time you are reading this article).
Let’s hope that the intrigue in golf and private clubs specifically doesn’t wane as well. Better yet, let’s hope that the leaders of private clubs realize that we did nothing to bring these consumers to our courses and clubs, but we can do plenty to keep them from leaving. Otherwise there may just be another bumper sticker about our industry for people to chuckle about. B R MAY / JUNE 2021 | BOARDROOM
91
INNOVATIVE
IDEAS
A True Demonstration of Family First COVID-19 has brought financial hardship to individuals and businesses around the globe; clubs have been no exception. Tara Iti Golf Club, in Mangawhai, New Zealand worked to not just survive but thrive in a post-pandemic world. The club, under general manager Matt Guzik, recognized this and took action to protect those involved and surrounding their close-knit community. The Tara Iti Whānau (Family) Charitable Trust was created to support caddies, employees, and families as well as assist other people in the wider community. The trust provided financial support for the general betterment of people and it helped people overcome financial hardships brought on by the pandemic. The trust itself consisted of three main initiatives: virtual caddie rounds, employee initiatives, and community support. The first, virtual caddie rounds, paired up caddies with a club member where they could be paid out for one ‘virtual caddie round’ of golf each week. This assisted caddies financially and helped them pay for essential needs, such as rent, food and bills.
92
BOARDROOM | MAY / JUNE 2021
The caddies have each reached out to their sponsor members to thank those who have contributed to the fund for their generous support. These messages of thanks were sent out in the form of video messages, golf hints, or something creative that would brighten the days of members. “It was a true reflection of the special relationship between caddie and player that extends way beyond the golf course,” said Guzik. The trust will continue its work as uncertainty continues and it will continue to provide support through virtual caddie rounds until everyone is firmly on their feet again. The second component is the employee initiative. It’s a sort of ‘pay it forward’ initiative in which a virtual food basket can be accepted by an employee, or they may choose to pass the goodwill on to another deserving staff member. The trust was also used by many employees who may have needed assistance to pay for medical expenses, online education, return airfares or to meet unexpected costs that arose during lockdown, such as vehicle repairs, rental payments or other living expenses. The final initiative that made up the Whānau (Family) Charitable Trust is aimed at creating activities that promote literacy, education and well-being for members of the broader community. Donations were made towards organizations such as the local school, volunteer fire brigade, St. John’s Ambulance, Make-A-Wish, and the Children’s Mobile Dental Clinic.These and many other organizations required equipment or assistance post-pandemic that Tara Iti was able to provide. By giving back to not only their club community, but those around them, I have faith that the Tara Iti family will come back stronger than ever. A truly shining example of goodwill during hard times. B R
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
Golf Is for the Birds
A Lifesaving Opportunity in Their Own Backyard Yellow-eyed penguins, takahe, kakapo, black stilt, greens team, caddies, members and staff all chip in to protect that species fairy tern. These are just a few of the threatened by reporting nests. The dotterels are known to nest in the bunkers throughout the golf course at animals in New Zealand. Tara Iti. Once found, the nests are roped off and monitored to promote successThe role of a good environmental steward is to ful breeding of this threatened bird for the rest of the season. protect the country’s most endangered species to To help clear any potential confusion on the course, Guzik implemented a the best of their ability. local rule that states that any ball that enters the roped-off areas results in At the Tara Iti Golf Club, they are trying to do a free ball drop anywhere away from the nesting sites. just that. The Mangawhai, New Zealand club es“The program is so successful we generally have pairs of breeding dottablished the Shorebirds Trust back in 2015 and terel on every hole at Tara Iti!” said Guzik. holds a charity golf tournament annually to fund Not only has Tara Iti used its existing habitat to promote conservation science-based research into how to best protect and the breeding of threatened animals, but the club is also working on these species. habitat creation. There has already been incredible success on this front as In 2020, they partnered with the Shorebirds two at-risk birds, banded rail and fernbird, have begun re-colonizing wetTrust and owners of the club to make a bold lands that were created on the property. statement by establishing the property itself as The club works closely with the Department of Conservation (DOC) for an ecological sanctuary. the recovery efforts with the most endangered species, the New Zealand General manager Matt Guzik said that this spefairy tern or ‘Tara Iti’; the club’s namesake. There are only 40 of these small cial place holds great potential. birds left on the island. DOC rangers commonly stay in staff accommoda“With plenty of wilderness on the course and tions while working on their fairy tern recovery projects. around the property, the opportunity to play a signifFinally, Tara Iti has recently partnered with the New Zealand Educational icant role in conservation is very real,” Guzik added. Institute - Massey University. Through this partnership, studies can be The focus of conservation in New Zealand is hosted on club property. A mutually beneficial agreement that allows the the hope of restoring the land to its previous club to support furthering education while also educating themselves on excellence before human arrival. When humans the ecological recovery taking place in their backyard. introduced mammals such as possums, rats and By understanding what they have to give and what they can gain in turn, stoats, the mass extinction of many species and Tara Iti Golf Club is truly making way for a fresh perspective on next steps ongoing decline of biodiversity began. for private clubs in a world becoming increasingly more eco-friendly. BR By establishing Tara Iti as an ecological sanctuary, the club was able to start invasive mammal pest control across the property, creating a safer habitat for the surrounding native wildlife. Now, the club is working with the surrounding community in hope of getting it involved in pest control as well. Currently, they have 616 hectares of protected habitat on the Tata Iti property. With the surrounding area, they will be able to add another 900 hectares, bringing them that much closer to their end goal of 5,500 hectares. Another way that Tara Iti is working to protect wildlife can be seen through their work with the New Zealand dotterels, an endangered shorebird found only on certain parts of the island. The club created a monitoring program in which the MAY / JUNE 2021 | BOARDROOM
93
ELLERY PLATTS
INNOVATIVE
IDEAS
Now Open! Now What? A Blueprint for a Post-Pandemic World As country clubs look to rebuild, both physically and socially, many are turning to architects for solutions as their worlds transform. John Kirk, among the nation’s foremost designers of golf and social clubs, points out that top organizations are focused on three major changes. Expand the outdoor program spaces, add club-run housing and lodging, and reinvent crucial club amenities for kids and families. Kirk suggested outdoor spaces could be anything from informal gathering areas to new outdoor dining spaces that are dedicated to performance and event venues. He said that these will be critical to club recovery. Along with these suggestions, a survey found that club members are increasingly preferring safe ways to socialize.
94
BOARDROOM | MAY / JUNE 2021
“The new buildings and spaces boost club appeal to many who otherwise might not have even considered membership,” Kirk added. The second suggestion, adding club-run housing and lodging, comes from the emerging market for alternative housing options for short to mid-length stays. Kirk, however, is noting a larger influence of high-end hospitality and custom homes on club properties. Another appeal to living on club property is the easy and instant access to club services and amenities, such as linen and landscaping services as well as meal delivery. Plus, downsizing can feel especially sweet with a golf cart in your garage. Finally, Kirk points to the importance of having kid-centric club amenities. “The pandemic’s impact is radically transforming fitness centers and spaces for children and teens,” said Kirk. “Clubs working to broaden their reach have been catering to increased interest in personal workouts, socialization, and family gathering in the safest possible surroundings.” Kirk and his colleague, Sam Blodgett, are sure that these three simple changes will drive renovation budgets in the years to come. The duo is tracking how club leaders change facilities to better manage post-pandemic life. Kirk and Blodgett are leaders in their field and are known for their work on clubs such as the Farmington Country Club in Charlottesville, VA, or the New Albany Country Club in New Albany, OH. According to them, post-COVID considerations are making moves across the nation as clubs work to evolve, becoming more diverse and modern as well as reinventing their image. Clubs are also looking to attract more women, young families, and Millennials who will be served well by these changes. The architects are both members of the 42-year-old firm Cooper Robertson in New York, and their impressive portfolio and combined years of experience are something to be admired. B R
THINK NEW. THINK AHEAD.
Providing tailored advisory services in partnership with strong club leadership.
L E T ’ S P L AY. bobbyjoneslinks.com
To: Boardroom Magazine From: Big John Grills
MAY / JUNE 2021 | BOARDROOM
95
STEVE SCHENDEL Steve Schendel is vice president, Golf Maintenance Solutions. He can be reached at (630) 220-5977 or via email: steve.s@golfmsolutions.com
GREEN COMMITTEE
Sustainable Maintenance Facilities It’s no secret that golf course maintenance facilities are an important part of the golf course maintenance operation. The maintenance facility reflects how the golf course is taken care of and more often than not, what you see at the maintenance compound is what you will see on the golf course. Are storage areas clean and organized? Are good records being kept? How clean is it? Are facility standards in place and adhered to? Is the area accommodating to staff? If you answer yes to these questions, the odds are you have good systems in place out on the golf course. One of the challenges golf courses have is keeping these assets updated. The problem is there are usually other capital priorities for the club on the golf course or around the clubhouse that are viewed as more important due to revenue generation.
For a successful 2021, make sure to keep your maintenance facility as part of your capital plans for this year and years to come. We know you and your crew will benefit greatly from this and it will ultimately be reflected on your golf course. While there is no doubt that the capital items listed on your master plan are important, keeping maintenance facilities updated should always be something discussed when looking at short-term and long-range plans. While building a new maintenance facility is sometimes the most logical answer, we know that it’s not realistic to plan for new buildings every 30 years. The key is to plan ahead and make incremental progress each year to ensure a functional and sustainable maintenance facility. Simple things, such as updating lighting, refurbishing break rooms, improving safety and adding affordable storage (trailers, lean-to sheds or smaller Morton buildings), can be added over time to make sure you are maximizing your work area for golf course maintenance co-workers and to protect your equipment and other valuable resources. Spring fever is upon us and with summer close at hand, it’s still a great time to list priorities for your maintenance compound and address them throughout the coming year. As you walk through your compound and develop your list of opportunities, start with safety issues. 96
BOARDROOM | MAY / JUNE 2021
Make sure fire extinguishers are upto-date, inventory your light fixtures and make sure bulbs are always functioning for adequate lighting. Consider getting a shop lift if you do not already have one, replace the 50-year-old refrigerator and the 10-year-old microwave, switch from the old dry erase board and use a cheap Smart TV for job assignments. Paint the ballasts around your fuel tanks or improve signage throughout the facility. These are a few simple things we often see at properties where a little TLC can have a positive impact on your staff. You would be surprised how many of the maintenance facilities we visit have numerous fluorescent light bulbs burned out or bad ballasts for the light fixtures. These are simple fixes that when ignored can compound into larger issues. One of the clubs we work with recently added a motion sensor/automatic water dispenser drinking fountain (like you see in airports where you fill your water bottles). Items like this are great upgrades. With clean, well-organized, functional and sustainable maintenance facilities, we know there are many benefits. Increased safety and fewer accidents, opportunities to attract and retain quality employees, improved impact on environmental areas and increased employee morale are a few of the good things that come with updated maintenance facilities. For a successful 2021, make sure to keep your maintenance facility as part of your capital plans for this year and years to come. We know you and your crew will benefit greatly from this and it will ultimately be reflected on your golf course. B R
DAVE DOHERTY 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
GREEN COMMITTEE
Let’s Talk Aerification and Money In a recent article, “Testing Greens When They Are Healthy Is a Must,” a superintendent in the U.S. Gulf Coast area was planning to adjust his aerification program after our ISTRC visit to his course. The superintendent made the decision to modify his aerification program based on the physical property testing over the last few years and what was found during the ISTRC site visit. His aerification program involved changing the size of tine and the time of year. He planned on doing all of his disruptive aerifying (3/4” tines) during his slow cash flow time of year. In addition to the larger tines, which are cash flow disruptive, he would add three or four small (3/8 and half inch) hollow tine ventings during this same time of year, and use the smaller (less disruptive ¼” hollow tines) during the playing season, if necessary. The physical property analysis had shown that the amount of displacement needed to be increased from what had been done during the previous three years. Our research over the last 10-plus years has shown that smaller non-disruptive tines can be one of our most valuable assets in achieving additional displacement without causing loss of cash flow. During my conversation with this superintendent the first week of March, he said the club had already aerified twice this year during the first two weeks of February (using 3/8’s & ½” hollow tines) and that the holes had already healed. Both he and management have been ex-
tremely happy with the new program, which is based on the science of physical properties, communication and common sense. The management company’s CEO had shared that each time they did disruptive aerifying it cost the club around $100,000. With 16 clubs and with two disruptive aerifications a year, that comes to an income loss of $3.2 million a year for the company. Based on science, we feel that we can accomplish the displacement needed with one disruptive aerification and three or four non-disruptive aerifications/ ventings each year. Eliminating one disruptive aerification per year per course adds $1.6 million to this firm’s revenue. This recession has forced us to become better stewards of the properties entrusted to our keeping. It and subsequent budget reductions have challenged us to produce the same quality of turf and playing conditions with less resources. As an industry, we have always been in the forefront of the movement to preserve and enhance our environment. The advancement of the science of physical properties has allowed us in most cases to improve the quality of turf and at the same time reduce the amount of chemicals and water used. We can and must reduce our costs, while improving our playing conditions. Can it be done? We’re doing it every day. B R
MAY / JUNE 2021 | BOARDROOM
97
JOHN R. EMBREE John Embree is CEO at the United States Professional Tennis Association and can be reached at (407) 634-3063 or via email: john.embree@uspta.org
What Is Tennis Doing to Be a More Sustainable Sport? Every sport in today’s world is trying to figure out how it can be more environmentally friendly and sustainable. You can see the strides being made in sporting arenas, in sports products, and in packaging. Most companies feel an obligation to do their part to support those initiatives that can make a difference in our world for future generations. The United States Professional Tennis Association (USPTA) continues to be incredibly proud of our endorsement agreement with Wilson Sporting Goods. Their commitment and foresight to “green” tennis ball programs offer the game a bright future with the use of an environmentally friendly product while also creating a massive value proposition to clubs and tennis professionals alike. Until recently, there has been little innovation in the tennis ball space for the past 50 years — the only significant changes being the felt color change from white to yellow and aluminum cans to plastic. With a substantial focus on sustainability, the new Wilson Triniti ball has challenged the status quo of how tennis balls are made. Working with Dow Chemical Company to integrate a low-density plastometer into the
98
BOARDROOM | MAY / JUNE 2021
existing rubber compound, the Triniti core features a thicker wall (40 percent increase in thickness), contributing to a more lively and consistent bounce. Coupled with a new “stretch felt,” Triniti maintains its fresh ball feel four times longer than a traditional pressurized ball. Finally, working with a leading supplier of recyclable packaging made from FCS-certified materials, the Triniti balls are the first of their kind in the high-performance tennis ball industry not to be housed inside a pressurized can. The Triniti ball is right for consumers concerned about the environment and who seek to use sustainable products. Not to be outdone, the US Open ball, which owns almost 50 percent market share in the pro/specialty market, now has a sustainable story worth mentioning. This premiere product comes with an innovative ECO overcap, which reduces the amount of plastic by half and leaves a smaller footprint on the environment after it has been used. On the other end of the spectrum, many wonder what becomes of discarded tennis balls. Well, in 2019, Wilson signed a three-year partnership with RecycleBalls, a non-profit organization in South Burlington, VT, whose mission is to recycle tennis balls worldwide. According to Cindy Cantrell of Racquet Sports Industry, “American players discard 125 million used tennis balls each year. Since it takes 400 years for the rubber in tennis balls to decompose, that translates into a staggering 20,000 metric tons of methane-producing, near non-decomposable rubber and nylon waste annually.” RecycleBalls calls for anyone with 100 or more tennis balls to box them up, print a free shipping label from recycleballs.org, send them to Vermont, and then receive a tax deduction. Facilities with a minimum of four courts can register for the Quickship Program, which includes 10 foldable, self-locking cardboard bins that hold 2,000 balls. Once the balls arrive at RecycleBalls, they are placed inside an eco sports recycling machine called “Play It Green,” where 99 percent of the felt from 10,000 balls per hour are removed. The result is a crumbled fine rubber that can be used to make tennis courts, playgrounds, and potentially even furniture, shirts, and shoes. RecycleBalls has already processed more than 4.5 million tennis balls since its inception. If you’d like to align your club with the wonderful work that RecyleBalls is doing, be sure to visit their website at recycleballs.org. Ordering your green containers is super simple and will instill a sense of responsibility within your membership. I have always had the “red W” stamped on my forehead. It’s the result of being part of the company for over 17 years. Wilson continues to push innovation in tennis forward, making the game better for those who play it and the world in which it is played. B R
CASE STUDY | PROFORM MATING
Entry Matting Systems “You never get a second chance to make a first impression.” Proform manufactures entry matting designed for Country Clubs & the hospitality industry. Creating an impression & reinforcing the brand starts at the entrance. Quality Proform matting, with ADA compliant safety edging, reduces the risk of trip and fall and increases the life of interior flooring. Safety is so important. One accident can change the life of one of your members or guests. Our website (www.proformmat.com) features beautiful projects in Hospitality and Country Clubs from coast to coast. Let Proform build the perfect solution for your club. Call (888) 331-3100 or Email photos of each area along with your logo file & we will send free samples, proofs, & photo renditions for your club. B R
MAY / JUNE 2021 | BOARDROOM
99
KEVIN F. REILLY
ED YODER
CLUB FACTS & FIGURES
American Rescue Plan What Does It Mean?
The American Rescue Plan Act (the Act) signed into law March 11 provides a deduction in 2021 and 2022 to 100 percent. number of items to help aid economic recovery out of the coronavirus pan- Previously, business meals were deductible at 50 percent. demic. The Act includes the following provisions: Clubs could see a boost in demand over the next • Makes the first $10,200 of unemployment benefits in 2020 tax-free two years as their members take advantage of the for taxpayers making less than $150,00 per year increased deduction for business-related meals. • Provides recovery rebates to individuals of $1,400, plus $1,400 per The Act expands eligibility for the PPP by independent cluding all 501(c) organizations, including 501(c)7 > Phase out begins as $75,000 for singles and completely phases social clubs that do not fall under Small Busiout at $80,000 ness Administration regulations barring the > For married couples, the phase out begins at $150,000, with a participation of private clubs that limit their $160,000 phase out membership for reasons other than capacity. • Continues COBRA coverage availability until Sept. 30 Employers with less than 300 employees can • Enhances the Child Tax Credit by making 17-year-olds a qualifying apply for a second round of PPP loans. For clubs, child for 2021 and increases the credit from $2,000 to $3,000 or this will be their first draw. $3,600 for children under 6 Loans are based on 2.5 times the average > Phase out begins at $75,000 for singles and $150,000 for couples monthly payroll from 2019 or 2020. You have 24 • Extends the Family and Sick Leave Credits through Sept. 30, with weeks to use the PPP loan funds on payroll, emthe limitation on the number of days taken reset March 31 ployee benefits, utilities, rent, and interest expense. • Allows the Employee Retention Tax Credit (ERTC) through the end After the 24-week period, clubs can apply for of 2021 loan forgiveness from the Small Business Admin• Declares the discharge of student loan indebtedness will not be inistration. Loan amounts not used on qualified excome between Dec. 31, 2020 and Jan. 1, 2026 penses are subject to one percent interest and will • Expands eligibility for the Payroll Protection Program (PPP) loans need to be repaid within 24 months. to all 501(c) organizations ERTC rules were enhanced for 2021. Small • Creates funding of a $28.6-billion Restaurant Revitalization Fund. employers, as defined by having less than 500 full-time employees, are eligible to claim a credit The Act establishes a new Restaurant Revitalization grant program for on 70 percent of the first $10,000 of wages paid restaurants and bars that have experienced a pandemic-related revenue to each employee per quarter. loss. Amounts will be determined through a simple revenue calculation in A full-time employee is defined as having 2020 compared to similar quarters in 2019. worked on average more than 30 hours per week Grants will be reduced by any amounts received from covered loans or 130 hours per month. under the Small Business Act in 2020 or 2021. Small employers can claim the ERTC if they Priority is given to small businesses controlled by women, veterans, or experienced a 50 percent reduction in gross resocially and economically disadvantaged owners. ceipts for any quarter in 2020 as compared to Grant funds will be available to use for payroll, mortgage obligations, 2019. Alternatively, small employers can qualify rent payments, utilities, maintenance, supplies, food and beverage exfor the ERTC due to a full or partial government penses, covered supplier costs, operational expenses, paid sick leave, and suspension. other expenses deemed essential. To qualify for a partial government suspension, Applicants, including affiliates, must have 20 or fewer locations, to qualthe taxpayer must demonstrate that there was a ify for the grants. more than nominal financial impact caused by a At the time of this writing, guidelines for the new program were not esgovernment shutdown. tablished, but should be by time of publication. In December 2020, Congress passed the Coronavirus Response and SEE WINNING STRATEGIES | 107 Economic Relief Bill, which included a provision to increase business meals 100
BOARDROOM | MAY / JUNE 2021
NANCY BERKLEY Nancy Berkley is an expert on women’s golf and junior girls golf. Nancy shares news and her opinions about women’s golf on the www.lpgawomensnetwork.com, www.womensgolf.com and on her own websites: berkleygolfconsulting.com and nancyberkley.com. You can also follow Nancy on Facebook at https://www.facebook.com/nancy.berkley.98 and on Twitter @NancyBerkley.
NANCY’S CORNER
Introduce More Partnership Formats To Your Club’s Women Golfers The women’s Solheim Cup and the men’s Ryder Cup are popular threeday golf competitions between 12 golfers on Team USA and 12 golfers on Team Europe. The first Ryder Cup was held in 1927 and the first Solheim Cup in 1990. The competitions are traditionally held in alternate years. But because of concerns about the COVID-19 pandemic, the 2020 men’s Ryder Cup was postponed to September 2021, a few weeks after the women’s 2021 Solheim Cup takes place. This is the first time in the history of these two team events that they will be held weeks apart. The women will compete on one of the most famous Donald Ross courses, in Toledo, Ohio, and built on deposits left by receding glaciers. The Ryder Cup teams will compete on a different links-style course in Wisconsin. The Solheim Cup and Ryder Cup are both match play competitions with identical partnership formats. On the first day, players compete using a foursome format. Day two uses a four-ball format. (Both formats are described in Chapter IX of the R&A/USGA Rules of Golf.) The third and final day are played as singles matches. The winning team is determined by points awarded for wins and tied matches. SUGGESTIONS FOR INTRODUCING MORE PARTNERSHIP FORMATS AT YOUR CLUB
1) Offer a “modified” foursome — alternate shot tournament. Players on each team play all 18 (or nine holes) but alternate every shot from the last putt on the previous green to the next tee. The Solheim Cup and Ryder Cup teams do not use handicaps, but your women golfers will enjoy the level playing field provided by a USGA handicap. The new handicapping technology makes team handicaps easy for your golf professionals to compute. Apply the team handicap to the final score of the teams having played 18 or nine holes. 2) Offer a four-ball format — twosomes versus twosomes with the net score of the better player used as the team’s score. Many clubs already use this format as their member-member. It is easy to apply a player’s handicap as the strokes fall on the card. Here is a partnership reminder based on a famous Solheim Cup incident: If a player thinks an opponent’s putt should be conceded, she better make sure her partner agrees.
Alternate Tournaments
Kim Augusta is a PGA golf professional at my club, Frenchman’s Creek Beach & Country Club, in Palm Beach Gardens, FL. Kim has been teaching for 25 years. Here is Kim’s advice: “When it comes to alternate tournaments, my advice is to stay relaxed. You have a partner. One of the reasons women don’t like alternate shot is they feel it puts too much pressure on them, and they feel that they are letting their partner down. “A good way to improve is to find a friend and go play that format in the afternoon. I think after a while they will find that it’s a lot of fun. “If I was playing in a partner’s event, I would absolutely say something to my partner if something was bothering me. “I would also give my advice on a particular shot or putt. My belief is partners are helping one another, and I’ll take my partner’s advice at all times.”
SEE WINNING STRATEGIES | 107 MAY / JUNE 2021 | BOARDROOM
101
PHILIP J. HARVEY Philip J. Harvey, Sr. is founder of Preferred Club, Venture Insurance Programs. He can be reached via email: Pharvey@ventureprograms.com
INSURANCE COMMITTEE
Club Insurance
The Coming Perfect Storm How about wind? Within the months to come, coverages are being pulled by Fire, ice, wind, water — four essential elements of nature for survival and di- the standard suppliers to the marketplace in expectation of adverse conditions. This will lead specialty insurers to provide limited capacity with a historic insaster. crease in premiums. Carolinas, Georgia, and the Florida Coast as well as the Gulf As your friend and ally, they are esstates will be dramatically affected by constrictive supply as well as spiraling presential to survival. As your foe, they miums. are a detriment to progression. How And last but not least, water. Not much has to be said about this peril and how are they affecting the current and it has changed the approach to underwriting profitability. These coverages are ongoing insurance renewal process? available from either government-sponsored programs or private carriers that Big time. have entered the market due to the former escalating premiums. This peril has To date, since the turn of the calbeen quite prevalent in South Central and the Northeast. endar year, property and liability What is changing in today’s club market? In this industry, carriers would memarket suppliers have tightened the thodically jump into the market with the assumption of achieving an underwriting tourniquet on renewal terms with a profit. To accomplish that result, the underwriter needs to understand the attricontinued eye on the exposures afbutes of exposure that affect the profitability of the industry. fecting the marketplace. Due to a soft market mentality, numerous carriers entered the market, forcing Let’s start with the calamities afthe price points down due to competition. Many of these markets entered and exfecting the wildfires in the western ited over short periods of time due to poor underwriting results. For example, five United States. How has this affected years ago there were over 10 carriers vying for your business in the marketplace. the supply line to property insurToday, carrier markets are limited to three to four suppliers. ance? Dramatically. What do these markets know that gives them the advantage over the rest? UnWith losses in the billions and the derwriting discipline, market intelligence and experienced data that reflects each catastrophes on an aggregate basis, reand every club in the industry over historical periods longer than five years. With insurance providers have all but disapthis data, the underwriters have the ability to curtail or price coverages applicapeared or at best case “upped the ante” ble to the risk on a customized basis. Thus getting back to the four major perils in severe price escalations. California, previously noted. Oregon and Washington suppliers Lump in liability exposures? Numerous coverages provided to the club indushave pretty much dried up. California try, such as commercial automobile, directors and officers, and umbrella liability, alone eats up 32 percent of the capachave also been affected in the supply line because of the effects of social inflation ity available from standard carriers. in suits that take longer than usual to settle due to the litigation process resulting Next, adverse extreme freezing in larger awards. conditions in Central and South CenThis year will go down as the great equivocator within the insurance industry. tral United States, once considered In that it appears that all the major suppliers and re-insurers are on the same the insurance underwriter’s “sweet page in their concerns in underwriting profitability within this class business. spot” for profitability, are substantiIt is time within the industry, more than ever, that clubs pay close attention to ating the occurrence of billions and potential exposures that will ultimately affect the outcome of their insurability billions of losses to primary carriers. and the aspects that control the pricing of their overall insurance program. Now This unfortunate consequence, which is the time to educate staff and boards as to the detrimental effects of the existencompasses over 14 states, has ing market and the negative aspects of not supporting your clubs needs to supturned what was considered prudent port overall profitability. B R decisions in underwriting into a disaster. 102
BOARDROOM | MAY / JUNE 2021
from On the Frontlines | 46
“Jesus! Man up!” I looked at him and said, “Man up? Seriously? Let me explain something to you. If I can’t cry when terminating all these people, each with a family, then you hired the wrong guy.” Not wanting to show emotions can be a straitjacket for men and women alike, and men are more often dealt with more harshly for showing this perceived weakness or teased “all in good fun.” More than with many other businesses, you can develop intimate relationships with both members and employees in clubs. Multigenerational membership is strong proof of such lasting relationships as is the long tenures of many employees in clubs. These intimate relationships are one of the things most often cited as among members’ fondest memories. If our employees are responsible for so much of our success, why wouldn’t we shower one another with love? A beautiful clubhouse, immaculate golf courses, and superior member services do not organically develop. It is people who make these things possible. Through my respect and appreciation of their work and love of them as people, I continually strive to earn their trust, devotion, and high professional performance. They
always have my back because I prove with my actions that I have theirs. So, yes, I love my team and I tell them so. I feel no shame in that. Club members join because they want a close-knit community where members care and are cared for in return. YOU ARE CONFLICTED
There may also be discomfort with the use of love and intimacy in the misconception that doing so nullifies your objectivity when dealing with negative issues or making tough decisions, such as the ability to fire someone you love. If you are confident and act with integrity, love and intimacy will not interfere with doing the right thing. An example of this is couples who divorce but continue to nurture loving relationships with one another. Inherent in every human is the desire for love, belonging, and meaning. I have managed clubs in multiple states, lived and worked on various continents, and I can tell you that I have never encountered a society or community where this was not the case. Love and belonging are (indisputable) needs of all people. In the absence of love and belonging, there is suffering. The need for intimacy at work is not quantitative, academic, or measurable, yet it is a foundational and significant human experience. B R
MAY / JUNE 2021 | BOARDROOM
103
JARRETT CHIRICO
RACQUET COMMITTEE
Jarrett Chirico, USPTA, PTR, PPTA, PPR, PPTR was until recently director of racquets at Baltimore Country Club, Baltimore, MD. He is now director of racquets at Royal Oaks Country Club, Dallas, TX.
The Future of Racquets – Part II In the absence of true excitement and even know they want new programming yet; how could they if we don’t recognize growing participation in tennis, we have it ourselves? I assure you, there has never been a better time to introduce something new, seen an emergence of many racquet different, and lead. Furthermore, if you have 24 people on a tennis court playing sports. pickleball that means you have 24 opportunities to connect the dots between Paddle, squash, padel and many pickleball and tennis. others are gaining traction; however, That is how the tennis industry will come back and grow. On average, 30 pernothing has gained popularity or is cent of pickleball players take the next step to tennis or another racquet sport. growing as fast as pickleball. At Baltimore Country Club, our racquets program increased in participation Pickleball has grown year over year 390 percent in just over two years. This all came from pickleball and a team that by over 25 percent for the last six could connect the dots between multiple racquet sports for our members. years and counting. USAPA memberMembers who had never stepped foot on the tennis court all tried something ships jumped from 20,000 to 42,000 new that resulted in return racquets enthusiasts. Paddle players took part in tenin just over a year, and the Profesnis clinics and stayed for pickleball; pickleball players tried paddle. A visit to their sional Pickleball Registry is at almost club that normally would have lasted an hour and a half doubled. If you control 3,000 members since its inception a the numbers, you control the numbers. little over a year ago. In the end it all comes down to staff and mentoring. The future of tennis is There are so many resources at bleak because professionals are not equipped for the new demands in racquets. our disposal, so many racquet sports Director of tennis positions are disappearing and will be gone before we know bringing members to the courts, and it. These roles are being replaced with director of racquets positions that require still tennis professionals refuse to more depth of knowledge to recruit and attract staff as well as teach effectively. adopt new programming and general Directors need to diversify their knowledge in order to lead their teams. managers continue to maintain they How can we educate our teams for the future if we lack the knowledge to eduaren’t needed. cate them? By not growing ourselves, we set our teams up for failure. If we continue to make excuses for It is the job of every director to educate for the future. Your teams will have why we can’t innovate, why we can’t more interaction with members than any director ever could. The goal is to change, members will find clubs that groom them to direct their own programs, and when they leave to take over their will and eventually they’ll leave for own clubs, they will do the same for their teams. good. When racquets fail, the club This is how the racquets industry grows. This is how tennis comes back and will follow. thrives — through education, commitment and mentorship. Instead of protecting When I started pickleball at my forwhat you have, focus on helping those around you grow. I promise, it will come mer club, resulting in 1,000 people back tenfold in your favor. Be an expert, be a game changer, be a leader. playing weekly, I was at the height of The biggest thing I learned over the years is that it is essential to fail. I conmy tennis programming. On paper we tinually fail at programs every year. That is how we learn what works and what were thriving, but I knew we needed doesn’t — that is how we know what sticks. something new more than ever. It is important to understand that as successes rise so should failures. Simply If you can get four people on one put, you have to try things and keep trying things. I promise, your members will court for tennis, you can get 24 on thank you for it and the industry will be better off because of it. that same court for pickleball. In the It will get frustrating; it won’t be easy, but if I have learned anything in my caend it is all about participation, enreer it is that a lot can happen in a year. gagement, and expanding your proPush for more, expect more, want more. This is how we prepare for the Golden gramming. Your members may not Age of Racquets. B R
104
BOARDROOM | MAY / JUNE 2021
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 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 Executive Committee | 40
Also consider the future, in the community. The premise affects the community of talent within the club (also called the culture of the people), as well as the larger community in which the club exists. The reader is made mindful of the premise. Mindfulness creates awareness of the premise. Mindful beings bring their attention to the now, the present. Awareness leads the readers to the realization of possibilities, not probabilities. The present points to the possibilities – What can be done? Who can do it? How can it be done? Why is it important to do? What will happen when it is done? Why write it? Possibilities are the desired actions of the readers as a result of reading the book. Deliberfrom Executive Committee - Pieschala | 42
While the annual plan is not a vehicle for long-term capital planning, it should reflect the coming year portion of the longer-term plan and explain any proposed variation versus the long-term plan. 5) Compliance: Golf maintenance operations occur within many government requirements and regulations concerning chemical usage, environmental impact, water usage, and employment.
from Global Perspectives | 52
ate actions result from changed behaviors. The outcomes are desired by the author and the readers. The premise is based on logic and fact, based on the knowledge and skills of the author. The premise is also inclusive of emotions and feelings. When strategically used, the premise helps the readers arrive at the intended state. Writing a book is intentional. Begin with the premise ___________________________________________________________________________________________________ You may find this useful written on a 3X5 card My book working title: _______________________________________________________________________ Date started:________________________________________ Date completed: ___________________________________ Premise of my book: _________________________________________________________________________ ___________________________________________________________________________________________________ ___________________________________________________________________________________________________ Carry it in your pocket. Write your outline and notes on the back. The next issue of BoardRoom has Part II of this article. B R Like capital planning, compliance with these requirements and regulations is not primarily done through the annual planning process, but the planning process does provide an annual opportunity for management to update the board on any material changes to compliance needs and identify plans to remedy any areas of weakness or non-compliance. When the elements above are in place for golf course maintenance at your club, directors can see the overall outline of the program and understand changes over time as they occur or are proposed. By seeing the roadmap, directors can have confidence that the club’s aspirations are being met. BR
Newman adds. “We are seeing this percentage rise a couple of percentage points with COVID, and as clubs try to keep staff employed and reduce other recruitment model in place and closely monitor costs. And, of course, revenue levels have dropped, so we will see that peryour club’s lead pipeline. Member-driven revcentage increase.” enue is the backbone of most clubs’ financial Another COVID-related impact on this statistic is a function of various models. foreign labor programs. “Many foreign employees simply couldn’t leave their 2. Labor costs as a percentage of operating own backyard, let alone come to the U.S. This is forcing those clubs that rerevenues. Philip Newman, a partner at RSM lied heavily on foreign labor to find suitable alternatives, which didn’t exist U.S., says, “Despite all the evolutions of clubs pre-COVID and even with the pandemic don’t seem to be available in suffiover the years, the consistency of this statistic cient quantities now. The war for talent continues.” reminds us that we are above all in the people business.” Newman reminds leaders of the Sustainability in recent years has taken on broad and sometimes ambigulong-held industry adage that clubs should keep ous meanings. their payroll costs in line with dues revenue, Boards should be mindful that in addition to protecting natural areas and although he acknowledges the metric is not as wetlands, and being mindful of fertilization effects on soil conditions, their reliable for clubs with high revenue-generating responsibility also includes the sustainable economic health of their club. amenities, such as lodging, marinas and extenAs we emerge from the effects of the pandemic, now may be a good time sive banquet/event space. for a sustainability checkup. B R Payroll and related costs, as a percentage of total revenue or even total expenses, has been remarkably stable, in the 50-55 percent range,
106
BOARDROOM | MAY / JUNE 2021
with rumors or innuendo regarding those difficult decisions. There is one notable exception. The Florida sunshine laws related to club communities reA good conflict of interest policy practice is to quire open board meetings because of the potential for club boards to make provide a director’s consent form that requires decisions that could impact individual real estate values. Club records, especially financial records and personnel records are proa director to sign and agree to avoid conflicts of interest between their interests and actions they prietary and generally confidential. Financial summaries are regularly shared with the membership. However, very rarely are detailed financials made pubtake on behalf of the club. lic. Club directors should be required to acknowledge the confidentiality of CONFIDENTIALITY AGREEMENT such records and agree to keep them confidential. Unfortunately, there are normally more leaks BREAKING CONFIDENTIALITY of confidential information on country club The board meeting was over and the vice president and another director boards than just about any other business, even the Trump White House. These leaks con- stopped at the club bar to have a drink before going home. In the car on the way home the VP got a call from a member chastising him cern private discussion, confidential club reon a decision that is pending before the board. cords, or discussions regarding club practices A rogue board member had immediately called another member after the or policies. For some reason club members meeting and broke confidentiality, and then that member called the VP. think they should be privy to any information Remember – A fish with its mouth shut never gets caught. BR regarding actions of the board. That is not the case. Club boards cannot effectively discuss sensitive issues. They end up from Winning Strategies | 84
The window to apply for PPP loan funds was set to close March 31. President Joe Biden signed a deadline extension to May 31 the last week in March. Clubs that may not have been impacted by a government shutdown will Many clubs have been under governors’ orders to reduce their capacity of indoor dining facilities. definitely want to apply for a PPP loan. In general, the PPP loan will be more advantageous than the ERTC. For most clubs, this has resulted in a more The ERTC could be available for a longer period of time, depending upon than nominal financial impact and thus they should qualify to claim the ERTC so long as the how long state and local governments place restrictions on indoor dining occupancy. club continues to be under a government ocIf your club is having difficulty navigating the complexities of the rules and cupancy restriction. Clubs can actually take advantage of both the PPP and the ERTC. You just regulations of either the Payroll Protection Program or the Employee Retention Tax Credit, give us a call. B R can’t use the same wages to qualify for both. Any PPP covered payroll will not qualify for Kevin Reilly, JD, CPA, CGMA is a partner with PBMares, LLP in Fairfax, VA and has spethe ERTC. But if there are wages that are not cialized in the club industry for more than 30 years. He may be reached at (703) 385covered by the PPP loan funds, then your club 8809 or by email at kreilly@pbmares.com could qualify for the ERTC if there was a more than nominal financial impact from a full or par- Ed Yoder, CPA is a tax partner with PBMares, LLP in its Harrisonburg office. He may be tial government shutdown. reached at (540) 434-5975 or by email at eyoder@pbmares.com from Club Facts & Figures | 100
from Nancy’s Corner | 101
3) If your women’s golf schedule is already in place, consider a golf demonstration featuring your staff. Four of your instructors could play each format for three holes with your members as the gallery. Use the Solheim and Ryder Cup scoring: one point for a win and half-point for a tie. It’s a great opportunity to showcase your golf professionals. As play continues, your
professionals can explain why they chose a particular club and how they communicate with their partner. 4) Spend time with your golfers explaining how to be a good partner. This is especially important in the alternate shot format. What do you say to your partner when she hits her ball into a greenside bunker or a pond instead of on the green? And what do you say to your partner when she makes a great putt — or misses an easy one? I asked one of our club’s expert instructors, Kim Augusta, about partnership guidelines. (See sidebar.) Golf history will be made this year, with the Solheim Cup and the Ryder Cup weeks apart. Make it a “partnership for your members to remember. BR MAY / JUNE 2021 | BOARDROOM
107
from Cover Story | 30
• Although clubs want change, most don’t do ‘change management’ very well • Family-friendly • A belief that real club professionals don’t need member input, that committees are a pain and a roadblock to improvement • Heavy investment in facilities and too little investment in people and staff development • Strategic planning rather than strategic directioneering • Competition for member time, money and loyalty has increased dramatically • A far more ‘savvy’ buying community • Data-based decision making, i.e., Club Benchmarking • Advanced technology • There’s a younger generation of business-educated professionals, with less grounding in the Humanities, which address the people side of the equation • Big changes including the golf course as an entertainment center, where golf is one of the entertainments delivered; The PGA and others wanting to up education; PGA acknowledgment of the need for hospitality in the pro shop and golf operation; CMAA education...an engine of education, reflection and substantive conversation, and • Boards wanting to give operations mentorship to managers and to get policy mentorship from managers.
• Losing the Trust • Taking others for granted, assuming they’ll always love you without you putting in the time to make them feel special • Bigger and better over there...letting others know, often, that your club and your members and your staff are quite as good as the ones over there. And finally, here are a few must-dos needed to create the members’ emotional experience. • Boost your Big Happy. People want relationships with happy people. • Paper at home, people at the club. When you’re at the club, it’s all about connecting with people. Do your paperwork elsewhere.
AGENTS OF WEAKNESS
As Patterson insists, creating the emotional cement is one thing. Still, clubs also need to be aware of agents of weakness when it comes to preserving and strengthening a member’s emotional experience. Here are a few of Patterson’s no Nos. • Losing The Buzz...signaling with voice, gestures and comments that things have become a bit too bluesy-boring • Big Gloom: Seeing darkness, sadness and impending disaster in everyone, everything and everywhere • Becoming an office cat: Staying in the office doing paperwork, when the manager should be showing the flag and connecting with people rather than paper • Wearing the Bad Bod Face: Showing inner unhappiness, displeasure, disregard for others with Bad Boy facial expressions 108
BOARDROOM | MAY / JUNE 2021
PICTURED PAGES 108 & 109:
Elaine and Gregg Patterson
• Office in the lobby. Put your office in the lobby with lots of windows. Make it easy for people to drop in for a chat. • Names and faces: Know all your staff and your members and use their names to greet them. • Daily debriefs. As soon as you arrive, gather your key players and discuss what’s happening that day. • Write the club newsletter. • Personalize and customize emails. • Weekly meeting with the president, monthly meets with committee chairs and connecting with lots of members by attending lots of committee meetings and engaging in high-quality conversation. • Orient new members and new staff. • Walk and talk lots.
• Marry and bury: Get your ‘minister certification’ and perform member weddings and deliver funeral eulogies. • Be Santa Claus...Bring joy to kids and their parents. “People need relationships and community, and clubs are in the business of creating relationships and community. Doing people right means delivering, month in and month out, measurable ‘in the black ‘social KPIs And clubs that do people right have a high social net worth and clubs with a high social net worth will have a high financial net worth...guaranteed.” And for Gregg Patterson, that’s the bottom line. BR
from Boardroom Basics and Beyond | 18
Therefore, do not let a complaint go to waste. Timing complaints, complaints about slow or inconsistent service…are they the result of a poorly paced flow of members into your dining room? Use data to drive change. Get buy-in from the board and committees, communicate the why and ask for their support. Give committee members and insiders a look into the bottleneck effect of over seating the dining room. It is the end of the evening, members have finished dining, they sign the check, take a deep breath and sigh, “Another great meal at our club.” They get up, gather their belongings and walk towards the door. Do they leave with or without a fond farewell, walking into the night without a thank you? This is the final impression and last memory. Having a host will ensure that the
from Cover Story Package | 27
“Preaching and teaching” (as Gregg would say) are his life force and I wanted him to continue, but I can’t say it was easy. I found Gregg’s frequent and prolonged business travel much harder to handle than late committee meetings at the club or his working on holidays. • The Beach Club generously gave us a membership when Gregg retired. For me, at least for a while, it wasn’t much of a gift, it was work. Gregg knew everyone, and their parents, children or grandchildren. I knew about 10 people to say hello to. It was his home away from home; for me, it meant lots of smiling and chatting with people I didn’t know, listening to conversations I knew nothing about, and worrying about what I was wearing. Little by little, I’ve found my footing, gradually joining activities (Pilates and spinning, bocce league, and the non-fiction book club that Gregg initiated), and feeling more comfortable all the time. • For so many years, days together at home were rare, so as a retiree, I found myself trying to schedule lunches or a stop at Macy’s only on the days when Gregg was out of town. It took some time for me to understand that I didn’t need to hoard those days any longer. I do still find myself checking Gregg’s plans before I commit to my own, and that’s a work in progress. And we both keep hard-copy calendars on our desks, so we can easily book days for doing things together and days for doing things separately. As I write this, I know the adjustments felt very real to me as they were happening, but what I hadn’t anticipated is how being retired – together – would be such a pleasure. From the small things, like having company for early morning walks or a stroll to the drugstore or post office, going to matinee 112
BOARDROOM | MAY / JUNE 2021
latter does not happen. Make the experience count from the very first to the very last interaction because it really does all start and end at the door. All this sounds great, but what if it will not work in your restaurant, what if you cannot control the door? Then something else has to give: Reduce your menu items, simplify options, renovate the kitchen to increase production volume, add staff, add grab-and-go items, introduce buffet concepts. There are many other alternatives. But as Albert Einstein said, “The definition of insanity is doing the same thing over and over again and expecting a different result.” B R
movies together (I’d mostly gone alone, on weekends), eating dinner at the same time, taking Sunday morning bike rides that end at our favorite Culver City Starbucks instead of the club’s front door. And there are the big things: taking more overseas trips for longer periods of time, meeting friends for dinner any day of the week, entertaining people at our house (while we were working, we never had the desire to see more people at home), taking care of each other through some unexpected health hiccups, and watching every 2020 World Series game together (Dodgers win!). We enjoyed nearly two years of retirement before the pandemic struck. In retrospect, I’m glad we had some practice at being home together before COVID restrictions kicked in. In reality, it’s been perfectly easy for us; it’s been an extension of retirement, just without travel. Working via Zoom has given Gregg more “buzz” than he expected, with none of the hassles of being away so often. Although we desperately miss our personal international trips, the past year has been a powerful reminder of what we already knew about being together. I often tell people that when Gregg and I met in September 1977 on the fourth floor of Cascadilla Hall at Cornell University, we started a long conversation – and we haven’t stopped talking yet. Each of us is the other’s companion of choice, whether it’s to take a trip, take a walk, watch Netflix (when we agree on what to watch), talk about a book, or play bocce. Whenever and wherever we are together, we’re at home. Of course, that was true while we were working, but we always had so many diversions. This chapter of our life is simpler and even better than I imagined. I know that we still have more chapters to write together and as we get even older, some of those chapters may not be pretty. But I know that Gregg and I will be at home and talking it all through no matter what comes. 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 Publisher’s Perspective | 10
Without firsthand knowledge of the liabilities and exposures coming on board, the door is open for potential litigation.” Fred Laughlin, a GGA Partners director and co-author of The Club Governance Model about proper club governance, observed that the threats arising from legal concerns, financial health, and brand trustworthiness should be on the minds of private club directors. “There are also risks to a club that do not violate the law, but rather threaten a club’s balance sheet, its culture, brand, and/or reputation. Ineffective leadership, inefficient management, and opaque transparency that foments a mistrusting membership; all of these breed dysfunctions within the club and pose a genuine risk to its well-being,” Laughlin offered. Gordon Welch, president of BoardRoom Institute, the online education program for private club directors, says, “Risk and liability are generally caused by poor decisions, ethical dilemmas and bad habits. However, there are some risks/rewards as well. Sometimes clubs will take a risk that an insurance company might not like, but it is a huge reward for the membership.” “Risks for a private club vary from a delivery driver doing property damage or personal injury while out on a club delivery to a member having a slip and fall at the club to the board making a decision that is not in the club’s best interest,” Welch added. “Rules and rules enforcement are a real-time risk in many clubs. Most clubs have long-standing rules and an inconsistent record of enforcement,” suggested Henry DeLozier, partner at GGA Partners. “The failure to enforce rules is sometimes a greater risk than enforcing them as club rules, which have been promulgated to members, serve as a foundation of mutual understanding on which members can rely. When a club board decides to overlook – or fails to enforce – its rules, a precedent has been set. This precedent can – in some clubs – become an unintended rule change and is almost certain to demand justification when challenged,” DeLozier added. Stephen Johnston, the founding partner at GGA Partners, notes that “equity ownership in clubs, which subsequently change terms and considerations from a member’s original purchase understanding has become a growing issue as clubs evolve, market conditions change, and club members age.” He added: “Management and club boards are responsible for safe-guarding assets and financial sustainability.” As well, “club leaders are wise to monitor and measure the club’s risks on an annual basis calling upon the club’s legal, liability insurance, and audit experts to provide up-to-date guidance for each club,” DeLozier intoned. “The preamble to the question, ‘What doesn’t create liability at a club,’ pretty much says it all,” explained Rick Coyne, principal with ClubInsights. “However, and perhaps more complex, is in realizing the two types of liabilities, legal and public opinion. The gender issue is a great example. Most clubs have realized that society mandates equal access. Those few that still circle the issue are likely somewhat secure that they have addressed the legal requirement. “But have they left a bitter taste in the aftermath by not recognizing and fixing the problem? Sooner or later, the issue of perceived or real inequal114
BOARDROOM | MAY / JUNE 2021
ity will resurface again, likely resulting in lost time, resources and energy. Clubs that have made the change to full and equal access have seen very little change and members seem happier,” Coyne said. “Another standout risk that currently exists is equity refundability. It seems less of an issue today than in recent years. However, real estate-related clubs that offered equity refundability are still facing member lawsuits to get their equity back,” added Coyne in outlining a current example of risk. “This issue is immensely complex. While most bylaws and membership documents were written spelling out the conditions of refund and protecting the club from premature withdrawal, no one could have predicted the change in market conditions. “The recent and perhaps COVID-induced influx of buyers to second home communities may mitigate this trend somewhat, but it will still exist as time goes on and members demand to be refunded the fees they were promised. “Looking ahead, it would be easy to conjecture liability surrounding the health and well-being of members and employees. As an implied safe haven, the club will create higher member expectations of the club to exceed safety precautions. Golf rounds are increasing to higher-than-normal levels creating angst for golfers not feeling they have equal access. The same may hold true for other facilities, such as fitness, where members will expect both access and health safety,” Coyne added. And as might be expected, the risks facing clubs are many and varied, some, of course, brought on by the pandemic that the world has faced during the last year. “There has been a significant increase in the number of lawsuits brought by employees, prospective members and current members against clubs. These cases range from wrongful employment termination to discrimination actions based on gender distinctions to negligence,” explained the attorney, Tanzer. “For example, more than ever, members are threatening legal action against clubs that still have men’s grills or ladies’ day on
the golf course or fail to protect members and/or guests from injury. Additionally, as we continue to operate in the shadow of COVID, many new risks have become apparent, such as illness transmission, vaccine-related policies, and PPP loan enforcement actions by the Department of Justice for accepting Federal loan money while not eligible. “Dozens, if not hundreds, of clubs will be required to respond to allegations and investigations under the Federal False Claims Act. Without appropriate guidance and decision-making by the club, many will suffer civil penalties and possibly criminal penalties as well with potentially devastating consequences to the club,” Tanzer predicted. Stump labeled discrimination as the number one risk to private clubs. “Men’s only grills are ripe for lawsuits and secondly, golf courses that do not provide acceptable access to those members and non-members with disabilities, especially having and promoting the use of single rider golf carts,” is another major risk. “Existing members will have trust and new members will have expectations of a higher level of service and safety in their club. With so many restaurant closings, the upside for clubs is an immediate uptick in food and beverage. However, in my opinion, and based upon the many surveys we have conducted during COVID, members will be watchful and wary,” explained Coyne. “Nearly 60 percent of clubs reported increases in membership. Who are these new members and what caused them to join now? Do they have differing expectations from existing tenured members? What will it take to get them engaged and keep them? These are just a few of the questions we are asking today. “Very simply, when we create expectations, there are a number of ways in which we can miss the mark. Knowing what new and existing members need and want in these difficult times should be a top priority, followed by quickly re-engaging a toplevel member experience! Get them back to normal to keep them engaged ➤ and happy,” he added.
Like it or Not, You’re Paying for Training Don’t let service inconsistency cost your members the experience they are accustomed to at your club. Let RCS help–it’s an investment you can’t afford to NOT make.
RCSUniversity.com
MAY / JUNE 2021 | BOARDROOM
115
from Publisher’s Perspective | 115
So how does “fiduciary duty” apply to a director’s responsibility or duty to minimize risk that the board and the club might face? Laughlin advises that “fiduciary duty” requires the club to honor three duties: • Duty of Care – Govern in a professional manner. • Duty of Loyalty – Give priority to the club over personal interests. • Duty of Obedience – Comply with all laws to which the club is subject. “If the board does not follow and honor its own rules, its members will disregard them as well,” he added. These are points emphasized by BoardRoom Institute’s Welch. “If board members follow their fiduciary responsibility, do not have any conflict of interest, do what is best for the club as a whole and do not discuss board issues outside of the boardroom, they should not have any issues. When boards don’t follow these simple tasks, they get into trouble,” Welch implied. “Fiduciary means trust invested in board and committees by the members. An entire issue of BoardRoom could be devoted to how that should translate. It starts with the selection process identifying qualified candidates for functional roles that have the time and commitment to carry forward their duties, relentlessly pursuing objectivity and the best interests of the entire club. From there, it gets even more complicated,” explained ClubInsights’ Coyne. “Many clubs have difficulty in the selection process, and some have issues with too many members engaged. Regardless of the specific issues, boards are fundamental to governance and must define fiduciary responsibilities. Risk assessment should be a philosophical mandate given to staff, along with the necessary tools to meet the safety expectations of the members and staff. “On the larger scale, every board and committee should function under guidelines, a code of conduct, a strategic plan and a very easy-to-understand responsibility matrix identifying roles and responsibilities,” he added. “To fulfill their fiduciary duty, board members should become educated about the risks facing clubs, not only when threatened by legal action but proactively before a situation arises. When well informed, the board is in a better position to develop appropriate strategies and policies necessary to help mitigate risks,” expressed attorney Tanzer, in explaining how boards can reduce risk. So, what is the responsibility of the general manager in minimizing risk? “General managers have the responsibility to implement wise risk mitigation strategies and policies and to ensure that such mitigation is carried out on a day-to-day basis across all of the club’s operations,” Tanzer added. “Club managers are the caretakers of the club’s risks and, as such, shoulder the responsibility for shepherding their clubs by exercising alert care and attention to threats while ensuring that their boards address all legal obligations,” said GGA’s DeLozier. “It is the GM’s role to assure that the board is trained, oriented and stays within the board’s boundaries. This is a tightrope walk for many, but the GM must speak up if they experience anything outside the realm of the board. If board members are discussing issues in the grill or parking lot and 116
BOARDROOM | MAY / JUNE 2021
another member overhears something, the board can be sued if the issues, such as membership issues, are private,” added Welch. “Boards and management must do everything they can do to manage risk and assure the safety, well-being and financial strength of the club. This includes having proper board training, committees and staff; good contractual agreements with vendors and the proper insurance to support and defend the club and assure its future,” Welch stressed. “Boards with their leadership must act responsibly,” said Preferred Club’s Harvey. “Their ability to confer responsibility to club management is essential to the success of the organization. Many clubs’ boards stymie their management teams by limiting their authority and ability to manage properly. These constraints normally cause substantial further exposure at the board level. “Today especially, club managers are very capable of guiding the day-to-day operations of the club and its credo. Managers today are well educated and experienced in reducing liability at the board level,” he explained. “Our general managers today are better trained and prepared than in decades,” said Coyne in echoing that opinion. “Their teams and the creativity demonstrated during COVID saved the retention process, continued to provide a safe haven and even a sense of community in a very difficult time. “Boards should task the management team to identify risks and then provide the necessary tools to carry out the mission,” he added. And from the point of view of the board, Coyne said, “Working as a team is a requirement. Your professional staff members have associations feeding them specific data to ensure they have up-to-date information on risks and mitigating actions. Ask your members their opinions frequently, even with smaller pulse surveys. Knowing what’s on their mind requires less
mind-reading and more positive deliverables,” he concluded. “Get club industry smart!” is the credo from Tanzer. “As a general rule, while boards consist of intelligent, successful individuals with varied boardroom experience, their experience in the club’s boardroom is typically far more limited. “Whether online, in print, in person, or otherwise, seek information from club industry professionals who have seen it and heard it before in the club world. Then, they can utilize that education to adopt the applicable strategies within the context of their particular club. “Clubs are unique and, while there are similarities to many other industries and businesses, there are differences in how they should be managed and operated. With the relatively constant turnover of board members, it is essential that each board receive the information necessary to evaluate and mitigate risks applicable to the club industry,” Tanzer added. A board policy manual can guide club boards. It should be a requirement because it contains so much valuable information for board members, including job descriptions, legal documents, financial information, the club’s strategic plan and an overview of club programs. “Boards – and each board member – must follow the club’s rules. Risk mitigation is readily attainable through the development and regular use of a Board Policies Manual (BPM),” said DeLozier. “The board should discuss risk mitigation, with the GM being responsible for listing the various risks at least once per year,” recommended Johnston. “Written board policies neither guarantee being honored by management nor do they assure avoidance of a court case,” added GGA’s Laughlin. “A BPM does, however, establish a board’s official position that stands against unofficial positions that may be gleaned from social media or emails between board members and used in court. Similarly, for non-legal risks, a BPM provides a clear description of how the board will carry out its governance role.”
Author Mitchell Stump said, “General managers must choose which battles to fight and discrimination in 2021 seems to me to be one of those causes worth fighting for. “Who wants to take on the senior membership to bring them into the 21st century?” Stump queried. “Discrimination lawsuits may be swept under the rug at most clubs to keep your name out of the press but are still a threat to the club.” As for the board, “Somebody must take ownership of the issues,” Stump maintained. So how do clubs, their boards of directors and members reduce the risk… the exposure? In a nutshell, prevention is the key to 1) controlling costs 2) avoiding liability. It’s pretty clear what private equity clubs and their boards need to do. Board members need to know what their roles and responsibilities are today. They need a strong educational package based on an orientation program. They need to incorporate the club’s institutional memory (minutes, financials, details of capital projects) and the club’s culture, and make sure it all translates into the club’s operation, mission, vision, strategic plans, bylaws, and training manuals and guidelines for management and staff. Directors, committee chairs and other club officers are charged with controlling liability, controlling costs and enhancing the member experience at their club. It’s a worthy objective and the basic reason for a club, but ultimately it raises myriad legal issues and concerns. Where does it all start? A proper orientation for board members (where as many as one-third of board members can change each year) is essential because a club depends upon its board for long-term guidance, leadership and policymaking.
➤
MAY / JUNE 2021 | BOARDROOM
117
their club. It’s a worthy objective and the basic reason for a club, but ultimately it raises myriad legal issues and concerns. This education is essential in helping board members understand and Indeed, there are critical areas of expomeet the requirements of their fiduciary duties, thus mitigating or preventsure for private clubs today…employment ing costly legal fights. practices, supplier relationships, golf Clubs need to have a risk analysis to help develop a risk management plan that includes education, training, and better tools to make it easier for course and clubhouse liabilities, genstaff to implement better practices. The club’s plan should be reviewed and der-based issues, voting privileges, the lack of D & O insurance, and a host of other updated every year. Perhaps the most overriding principle guiding a director should be “fidu- ‘unforeseen circumstances’ that can lead to ciary duty.” A fiduciary is the highest standard of duty the law imposes in litigation. Today, more than ever, there’s a need for any relationship. This relationship is founded on trust placed by one person director education. Some clubs offer little in the integrity and fidelity of another. or no director education and orientation for Directors must discharge their director duties, including duties as a incoming board directors, and, unquestionmember of a committee, “in good faith” and “in a manner, the director ably, this today should be a requirement for “reasonably believes to be in the best interests of the club.” This is cenany private club. tral to the mandate of “duty of loyalty.” It all starts with board members underThere are a couple of red flags along the way that may affect a director’s stating their roles and responsibilities. participation on the board of directors, including: A ‘director’s job description’ with a list of • Conflict of interest: Does the director have any current potential conduties is an excellent place to start: flicts between their business or personal lives and the club’s needs? 1. Establish club policies • Too many directorships: Does the director already serve on too many 2. Oversee the fiscal management of boards that will preclude the person from devoting the time necessary to the club the club’s board? 3. Enact regulations (bylaws, rules, resolutions) So, to reiterate, clubs and their boards must create an environment of 4. Adopt budget plans prevention because it’s incumbent on the board to operate the club within 5. Approve membership applications the boundaries of the club’s bylaws. 6. Hire the general manager Directors, committee members and club officers and management may 7. Meet prospective new members contend they’ve ‘never been sued’ or that they have Directors and Officers 8. Oversee the administration of poliLiability Insurance to cover the club in the event of a lawsuit. But no doubt, cies and enforcement of club regusome clubs may find themselves in precarious legal positions, even if they lations do have pertinent insurance coverage. 9. Fill vacancies on the board As well, board members and the general manager for that matter also view 10. Discipline, suspend, or expel a memrisk through their experiential filters and this leads to a search for balance ber when necessary between the risk and return based on a person’s risk filter. And this is espe11. Review and approve programs subcially so in a litigious society where it’s important to cover one’s derriere. mitted by club committees 12. Oversee transfer of memberships PUBLISHER’S FINAL THOUGHTS 13. Attend special meetings So how do clubs, their boards of directors and members reduce the risk… 14. Supervise club election. the exposure? In a nutshell, prevention is the key to 1) controlling costs 2) avoiding liability. I would strongly recommend that your It’s pretty clear what private equity clubs and their boards need to do. board participate in a board orientation Board members need to know what their roles and responsibilities are program. Please go to boardroominstitute. today. They need a strong educational package based on an orientation com and sign up. ‘Replace Emotion with program. They need to incorporate the club’s institutional memory (minutes, finan- Facts.’ At least, that’s the way I see it. BR cials, details of capital projects) and the club’s culture, and make sure it all John G. Fornaro, publisher translates into the club’s operation, mission, vision, strategic plans, bylaws, and training manuals and guidelines for management and staff. Directors, committee chairs and other club officers are charged with controlling liability, controlling costs and enhancing the member experience at
from Publisher’s Perspective | 117
118
BOARDROOM | MAY / JUNE 2021
COUNTRY CLUB TECHNOLOGY PARTNERS
Technology Planning for Private Clubs
Technology Master Planning • Club Technology Report Cards • Cost Reduction / Audits • Hosted IT Solutions • Surveillance Cameras • Cyber Security Analysis •
www.cctechplan.com |
contact: noel@cctechplan.com MAY / JUNE 2021 | BOARDROOM
119
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
HFTP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Addison Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
High End Uniforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Ambassador Uniform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
HINT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
APCD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Jonas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Bambrella . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Kopplin Kuebler & Wallace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 & 35
Big John Grills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
MAI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Bobby Jones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
McMahon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 & 67
Bozeman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
MembersFirst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
BrightView . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
MemberText . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
C2 Limited Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
NanaWall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Castor Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Northstar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
ClubDesign Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Peacock + Lewis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
ClubTec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
PGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Country Club Technology Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
PHX Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Creative Golf Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
CSR Data Breach Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
RCS Hospitality Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
BoardRoom’s Distinguished Clubs . . . . . . . . . . . . . . . . . . . . . . 110, 111, 113 & 123
Rogers McCagg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
BoardRoom’s Distinguished Destinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
RSM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Emersa Waterbox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
S&K Financial and Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 & 71
Ethos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Strategic Club Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 & 73
Eustis Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Top Tier Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
FOOD-TRAK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Troon Privé . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Forbes Travel Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
USPTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Gasser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Videobolt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Gecko Hospitality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25, 68 & 69
Wausau Tile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 & 63
Golf Business Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
WebTec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Golf Maintenance Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Golf Property Analysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 GSI Executive Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
BOARDROOM MAGAZINE COUNTRY CLUB INDEX Nancy Berkley, green committee and marketing committee, Frenchman’s Creek Beach & Country Club, Palm Beach Gardens, FL Jarrett Chirico, USPTA,PTR, PPTA,PPR, director of racquets, Baltimore Country Club, Baltimore, MD Kevin Dunne, general manager and COO, Blackhawk Country Club, Danville, CA Joe Gattone, President, Medinah Country Club, Medinah, IL Greg Gonsalves, general manager/COO, Round Hill Country Club, Alamo, CA Andy Greenberg, president, Beach Point Club, Mamaroneck, NY Jeff Hartigan, general manager, The Oaks Club, Osprey, FL Bob Hill, president, Mountaintop Golf and Lake Club, Cashiers, NC Dr. Bob Hymes, president, Westwood Country Club, Austin, TX Dr. Bonnie Knutson, the Country Club of Lansing & the Michigan Athletic Club Denise Kuprionis, president, Kenwood Country Club, Cincinnati, OH
122
BOARDROOM | MAY / JUNE 2021
Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI Anne Lockie, President, The Oaks Club, Osprey, FL Joe V. McCart, president of Admirals Cove, Jupiter, FL Brett Morris, general manager and COO, Admirals Cove, Jupiter, FL Dylan Petrick, chief executive officer, Kenwood Country Club, Cincinnati, OH David Reeves, president, Blackhawk Country Club, Danville, CA Christopher Robinson, general manager, Mountaintop Golf and Lake Club, Cashiers, NC Randy Ruder, general manager, Beach Point Club, Mamaroneck, NY James Ryan, member, Round Hill Country Club, Alamo, CA Robert A. Sereci, CCM, general manager, Medinah Country Club, Medinah, IL. Bryan Stone, general manager, Westwood Country Club, Austin, TX