Th e Boa r d Ro o m ma g a zin e
CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 271
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VO LU M E X X I J U LY / AU G U S T
Vo l um e XXI , Jul y /A ug ust 2 0 17
10 | PUBLISHER’S PERSPECTIVE GOVERNANCE ISSUES FACING PRIVATE CLUBS AND WHAT YOU CAN DO ABOUT THEM
24 | EXECUTIVE COMMITTEE THE ELEPHANT IN THE CLUB GENERAL MANAGER JOB SECURITY AND TURNOVER
34-44 | DESIGN FEATURE 62 | BOARDROOM AWARDS PHIL NEWMAN RECOGNIZED WITH BOARDROOM AWARD OF DEDICATION
Leaders in F&B Innovation
Michael S. Wheeler, CCE, CCM
Matt McKinney, CCM
Jay DiPietro, CCM
Michael G. Leemhuis, CCM, CCE, PGA
COO and General Manager Cherokee Town & Country Club Atlanta, GA
COO and General Manager Capital City Club Atlanta, GA
President and General Manager Boca West Country Club Boca Raton, FL
President Ocean Reef Club Key Largo, FL
Craig L. Lopes, CCM
Richard L. LaRocca, CCM, CCE
Nick Sidorakis, CCM
Phil Kiester, CCM
Brett Morris
General Manager The Moorings Yacht & Country Club Vero Beach, FL
General Manager/COO The Country Club of Orlando Orlando, FL
COO and General Manager Southern Hills Country Club Tulsa, OK
General Manager The Country Club of Virginia Richmond, VA
COO and General Manager Polo Club of Boca Raton Boca Raton, FL
Innovation is a key component of leadership. These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together. The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.
Find out more. Call us at 800-553-2438. Or just ask them!
FOOD AND BEVERAGE MANAGEMENT SYSTEM
PROCUREMENT • INVENTORY • CULINARY CONTROL
http://www.foodtrak.com
JAY DIPIETRO VENDOR OF THE YEAR
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
President Matthew Kellogg And Other Relevant Points BoardRoom this issue introduces the second of two Distinguished Private Club Presidents for 2016…Matt Kellogg.
President Kellogg is being recognized for his distinguished service with the Colorado Golf Club. Earlier in the year, BoardRoom recognized Fred Arbuckle, president of The Bridges at Rancho Santa Fe, near San Diego, and president of 3 Creek Ranch Golf Club in Jackson Hole, Wyoming as a Distinguished Private Club President. This is the ninth year the industry’s top private club presidents have been honored by BoardRoom magazine for their outstanding work. “We are honoring 22 club presidents from Canada and the U.S. this year,” explained BoardRoom magazine’s publisher and CEO John Fornaro. The impetus, of course for the top president program comes from its sponsors, the Association of Private Club Directors, the parent organization of BoardRoom magazine, and Kopplin Kuebler & Wallace, one of the country leading private club industry consulting and search firms. This marks the second time in the nine years that BoardRoom has recognized two Distinguished Club Presidents for the same year. Now nominations for the 2017 top presidential selections are open. You can nominate your club president by sending the information to BoardRoom magazine before the end of November.
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And our congratulations to Phil Newman, a long-time stalwart of the private club industry, for recognition as the recipient of BoardRoom’s Award of Dedication. BoardRoom contributor Henry DeLozier in his writing about Newman, pays tribute to Phil for his outstanding contribution to the industry. “When I got to work with private clubs, I quickly realized how many different businesses, and business disciplines, were under one roof, and yet here was one lady or guy, charged with handling it all. “Their willingness to help each other out, share information and best practices was a beacon for me and so different to the closed shops I’d encountered with other industries. Anything I could do to help these managers out, I tried to do, and still try.” 4
BOARDROOM | JULY/AUGUST 2017
Then, again, added DeLozier, “there is that Irish determination at work as well.” For anyone who knows Phil, it might well be that Irish determination.
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BoardRoom this issue features a ‘design section,’ focused on what clubs are looking for these days to gain new members, retain members they already have, all while seeking sustainability. Our contributors from many of the industry’s leading architectural and design firms, explain how they view the future by creating functional, cutting edge, yet aesthetically pleasing amenities for a private club. The varied thoughts and ideas give clubs food for thought when considering major changes to keep abreast with their members and of course, long term sustainability.
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Robert Sereci, general manager of Medinah Country Club in Medinah, Ill, concludes this three-part series on The Perils of Membership Categories. “Part I of this series forthrightly laid out the quick benefits of membership category expansion. In Part II, we flipped the coin and focused on the value dilution of membership expansion. “Now in our final submission to this conundrum, we look at culture fracturing and the creation of the non-equity mindset.” “As with any society, the more classes you have, the more likely issues are to rise with who has what status and what privilege. A private club has often been defined as a group of people with common interests. The more membership categories that exist, the less common the interests become,” Sereci explained. “While most clubs do have some cliques, or what I also like to refer to as sub-cultures, I suspect that they mostly were developed naturally over time. When more membership categories are developed, chances are more sub-cultures will develop but instead of this happening naturally, it becomes forced and causes eventual division at a very rapid pace. This may be the most critical detraction for membership category expansion.” As Robert suggests, “once the genie is out, it’s difficult to put it back into the bottle.” All of which tells us that adding membership categories is a far more complex issue than we might see at first blush. BR
Publisher/CEO
Co-Founder/CEO
John G. Fornaro
John G. Fornaro
Editor/Co-Publisher
President
Dave White
Keith Jarrett
Assoc. Editor/VP Creative/Co-Publisher
Chief Analyst
Heather Arias de Cordoba
Frank Gore
APCD Executive Director
Chief Information Officer
Bill Thomas
Jeff Briggs
Editorial & Marketing Director
Executive Director
Dee Kaplan
Bill Thomas
Account Manager
Business Development Manager
Dina Alleluia-Carr
Christiánne Kinder
Contact Information
Contact Information
www.BoardRoomMagazine.com www.apcd.com (949) 376-8889 or (949) 365-6966
www.DistinguishedClubs.com (949) 376-8889
Subscriptions and Website Heather Arias de Cordoba www.BoardRoomMagazine.com (949) 365-6966
Featured Columnists Henry DeLozier John G. Fornaro Bonnie J. Knutson Nancy M. Levenburg
Frank Lucas Philip G. Newman Gregg Patterson Whitney Reid Pennell
Bill Schwartz Thomas B. Wallace III Dave White
Bennett DeLozier Dave Doherty Todd Dufek Michael Gregory Kelley Harris Rob Harris Jason Hazley Kevin Lichten MiRan Kim SeungHyun “James” Kim
Rick Ladendorf Melissa Low Phillip Martin Bill McMahon Richard McPhail Macdonald Niven Erik B. Peterson Mike Phelps Ted Robinson Corey Saban
Contributing Writers Heather Arias de Cordoba Chris Boettcher Peter Cafaro Lisa Carroll JaeMin Cha Ronald F Cichy John Cochran Rick Coffey Addison Craig Michael Crandal, CNG
Endorsements, Strategic Partners and Allied Associations
BoardRoom magazine is published by APCD Inc. 1100 S. Coast Hwy. #309 Laguna Beach, California 92691 The BoardRoom magazine (USPS 022516, ISSN 15537684) is a bi-monthly trade publication. Issue 271 Periodical postage paid at Laguna Beach, Calif. and additional mailing offices. POSTMASTER: Send address changes to THE BOARDROOM magazine, P.O. Box 9455, Laguna Beach, Calif. 92652. Reach The BoardRoom magazine at (949) 376-8889 ext. 1 or fax (949) 376-6687, email heather@boardroommag.com or johnf@apcd.com or visit the website at www.BoardRoomMagazine.com.
C O N T E N T S | J U LY/ A U G U S T 2 0 1 7
PUBLISHER’S PERSPECTIVE | 10
EXECUTIVE COMMITTEE | 12
FOOD FOR THOUGHT | 14
GOVERNANCE ISSUES FACING PRIVATE CLUBS
A RECIPE FOR MEMBER RETENTION AND ATTRACTION
THE MOVE TO MOBILE DEVICES IN F&B MANAGEMENT SYSTEMS
BY JOHN G. FORNARO
BY WHITNEY REID PENNELL
BY BILL SCHWARTZ
Private clubs to be sustainable, must have boards that fully understand the club’s culture, its core values, the club’s mission and vision, and long-range strategic plan, and what that long-range plan means. Board members must be leaders, not interventionists, or second guessers. Knowledge is vital for decision making.
When you want to bake a cake, do you follow a recipe? The answer is likely “yes” unless you are an experienced chef or baker. However, when we want to retain (or attract members), many of us either follow a recipe that worked in another location (or time period) or we abandon the recipe all together in the search for a quick fix.
Major changes are happening in the world of computing. Desktop computer use is declining in favor of mobile devices such as pads and smartphones. Software developers are rushing to accommodate the desire to use mobile devices, but not all devices are good for all tasks. This is especially true for food and beverage tasks.
PLIGHTS AND INSIGHTS | 16
BOARDROOM BASICS & BEYOND | 18
CLUB FACTS & FIGURES | 32
HIRING MILLENNIALS?
CLUB AMBASSADORS CARRY THE TORCH - PART I
ARE THE MAILBOXES ALL THE SAME COLOR?
Will you – or your club – be hiring Millennials anytime soon? Millennials make up about the largest segment and about onefourth of the U.S. population. They’re the children of Baby Boomers. So, what do you need to know about these folks, who were born between roughly 1980 and 2000, and are also termed “Generation Y” or more recently “Snowflakes?”
BY T H O M AS B. WA L L AC E I I I
Members, we need to get them and keep them. This is fundamental to private club success. It’s job one. But whose job is it? And who can best perform its function? The answer? It takes everyone. A new and happy member has no buyer’s remorse because they are happily relieved to see they have joined a club of like-minded individuals.
Residential homeowner association clubs are not a new development within the landscape of American clubs but they often do not get the same kind of coverage in industry periodicals and at conferences as traditional clubs. In the accounting world, homeowner associations clubs are referred to as Common Interest Realty Associations (CIRAs). We’ll seek to explain some key issues that club COOs need to consider.
GLOBAL PERSPECTIVES | 46
MEMBERSHIP MUSINGS | 80
TRIBAL MAGIC | 84
MANAGING YOUR MOST IMPORTANT ASSET - THE BRAND
HOW WOULD MEMBERS SPEND $86,400 A DAY AT YOUR CLUB?
BREAKING THE MIRROR
BY HENRY DELOZIER
BY BONNIE J. KNUTSON
Some say that private clubs are not brands. Those same people proudly disavow a connection between their club and the marketing term on the grounds that private clubs are above the commercial fray that characterizes every other buyer/seller relationship. Hogwash! Not only are clubs brands, the truth is they have no choice in the matter.
Time is probably the most valuable thing we have. In today’s crazy world, it seems as if everyone is time-strapped, time-poor, time-starved. Unlike money, no matter how long or hard we try, we can’t make any more of it. We might be able to reallocate our time but we can never increase our supply. That’s why time is becoming such a luxury … why we value it so much.
Manager Sue is in her office, 9 a.m., seated on her “You are The Big Cheese” chair, about to meet, for the first time ever, Bob Ambitious, an up-and-coming assistant manager. And she’s pondering. “How can I get an overly-ambitious, over educated-over certified hungry puppy like Bob Ambitious who’s armed with his “this is too good to be true” resume and a basketful of “he walks on water” recommendations, to see himself as others see him, so he can begin the journey to super Stardom?”
BY NANCY M. LEVENBU RG
BY PHILIP G. NEWMAN AND FRANK LUCAS
BY GREGG PATTERSON
SECTIONS
DEPARTMENTS ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 20
INSIGHTS. . . . . . . . . . . . . . . . . . . . . . 60
Deconstructing the Ideal GM/COO Role Model
Matt Kellogg - BoardRoom magazine’s Distinguished Club President for 2016 By Dave White
By Michael Crandal, CNG
GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Chapters Make a Big Difference
INNOVATIVE IDEAS. . . . . . . . . . . . . . 78
Training Kitchen Provides New Pool of Hospitality Employees
ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 62
Phil Newman - Recognized With BoardRoom Award of Dedication 2016
By Heather Arias de Cordoba
By Henry DeLozier
ON THE FRONTLINES. . . . . . . . . . . . . 81
The Perils of Membership Categories Part III
ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 64
Ensure That Your Board Members Know Their Roles and Responsibilities
By Robert A. Sereci
By Gordon Welch
ON THE FRONTLINES. . . . . . . . . . . . 86
GOLF DISPUTE RESOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Intrinsic Motivation Using the Right Tactics
An Outing with Grandpa By Rob Harris
By Macdonald Niven
EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
CLUB SERVICE. . . . . . . . . . . . . . . . . . 88
CMAA Recognizes CCM and CCE Achievements
Tenure is Good, for SOME… By Chris Boettcher
DESIGN FEATURE
COMMITTEES
Diverse Clubs and Demographics Demand Different Design
EXECUTIVE COMMITTEE. . . . . . . . . . 24
C2 LIMITED DESIGN. . . . . . . . . . . . . . 36
By Richard McPhail
CHAMBERS. . . . . . . . . . . . . . . . . . . . . 37
The Elephant in the Club General Manager Job Security and Turnover - Part I
GREEN COMMITTEE. . . . . . . . . . . . . 56
MEMBERSHIP COMMITTEE. . . . . . . 74
By Bruce R. Williams
By Phillip Martin
Upgrading Your Course Helps Attract and Retain Members
GREEN COMMITTEE. . . . . . . . . . . . . . 57
MEMBERSHIP COMMITTEE. . . . . . . 75
By Steve Schendel
By Ted Robinson
CLUB DESIGN ASSOCIATES. . . . . . . . 38
EXECUTIVE COMMITTEE. . . . . . . . . . 26
Mind the Gap
HINT | HARRIS INTERIORS. . . . . . . 39
By Ronald F Cichy, MiRan Kim, SeungHyun “James” Kim, JaeMin Cha
MARKETING COMMITTEE. . . . . . . . 58
JUDD BROWN DESIGNS. . . . . . . . . . 40 LICHTEN CRAIG . . . . . . . . . . . . . . . . . 41
TALENT and Burning Club Issues
MAI | MARSH & ASSOCIATES, INC. 42
EXECUTIVE COMMITTEE. . . . . . . . . . 28
MCMAHON GROUP. . . . . . . . . . . . . . 43
By Mike Phelps
The Elements of Value
Marketing + Sales = An Equation for Success
Video Makes the Private Club Scene By Corey Saban
A Club’s Culture - It Must Be Nurtured MEMBERSHIP COMMITTEE. . . . . . . 76
Surveying the Past, Engineering the Present And Planning the Future
WELLNESS COMMITTEE. . . . . . . . . . 66
By Rosie Slocum
By Rick Ladendorf
TENNIS COMMITTEE. . . . . . . . . . . . . 79
Legislative and Regulatory Update
MEMBERSHIP COMMITTEE. . . . . . . 68
By Jason Hazley
HOUSE COMMITTEE. . . . . . . . . . . . . 50
By Addison Craig
By Lisa Carroll
MEMBERSHIP COMMITTEE. . . . . . . 70
HOUSE COMMITTEE. . . . . . . . . . . . . 52
By Rick Coffey
PHX ARCHITECTURE . . . . . . . . . . . . 44
At Look at the Future for Wellness
LEGISLATIVE COMMITTEE. . . . . . . . 48
By Melissa Low
Embracing the Local Culture
How to Give Your Locker Rooms “Soul” By Todd Dufek
GREEN COMMITTEE. . . . . . . . . . . . . 54
How Often Should I Aerify? By Dave Doherty
Why Play Golf? – Marketing to the Next Gen
The ABCs of Member Data Mining
MEMBERSHIP COMMITTEE. . . . . . . 72
Millennials Represent Opportunities Part I By Michael Gregory and Bennett DeLozier
Lasting Impressions - Part II
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
Governance Issues Facing Private Clubs And What You Can Do About Them!
Private clubs to be sustainable, must have boards that fully understand the club’s culture, its core values, the club’s mission and vision, and long-range strategic plan, and what that long-range plan means – a continuing commitment from the club’s board. Board members must be leaders, not interventionists, or second guessers.
Knowledge is vital for decision making because a lack of knowledge of the issues can imperil not only the board’s decision-making process, but also the long-term future of not only the club, and the club’s top management and board. Boards must be aware of issues facing their clubs. Equally so, it’s vital that the general manager, the club’s daily operational leader, fully prepare the board with background reports, research documents and current information required for diligent, incisive decision making. Board members must separate personal agendas from that of their club…their strategic plan and the club’s daily operations. They must think like board members, for the public (the club’s) good. The GM/COO and department heads should update the board on major issues that might affect the club. Boards must be presented with facts and projected issues. Only then can a club’s board look for solutions leading to a stronger, better member experience. So, what are the major issues facing private clubs today? Here are the thoughts of some of the industry’s leading contributors. Jerry McCoy, principal, Clubwise, LLC, a private club industry consulting firm.
Solving the issues of governance structure allows for a club to deal with myriad strategic and operational issues the club will face in the future. There are very few problems that cannot be solved in a club where volunteer leaders, management and the full membership all trust and respect one another. The following issues are important to help insure a system that can deal with almost anything presented to them. 1. The club needs to have the basic governance parameters to guide their actions. Rules for how the board works, how they interact with management and the responsibilities of all involved need to be clearly spelled out 10
BOARDROOM | July/August 2017
and then most importantly followed. Some clubs have very few or don’t abide by the ones they have. 2. If you don’t start right it is much harder to succeed. Having the right people on the board is critical. That is why the nominating committee’s job is most important. There needs to be a good vetting program for potential nominees. In vetting candidates, the committee needs to consider the following: • Does the person have an agenda to just accomplish one thing? • Are they running to represent their own social circle or click? • Be sure the person does not believe their job is to manage the club • Do they have previous committee experience? • Are they interested in the welfare of the total club and willing to abdicate their priorities for the greater good? • Can they disagree without being disagreeable? 3. Provide a comprehensive new board member orientation. You never hire a new employee and immediately put them in the job with no orientation or training. Even though the elected board member may be successful in business, a professional or entrepreneur does not mean that they can immediately make effective decisions regarding the club. The unique nature of individual clubs, their issues regarding, membership, finance, capital investment priorities and strategic issues can be daunting. Providing new members a full review of all aspects of the issues they face is critical to getting new board members off to the right start. 4. Great boards need to be able to speak with one voice. Board members should be able to have candid conversation regarding difficult issues. Many board votes will not be unanimous. It’s critical, no matter where a board member is on an issue, that board members come out of the meeting speaking in one voice. When confronted by a member asking how the board could SEE PUBLISHER’S PERSPECTIVE | 89
WHITNEY REID PENNELL
EXECUTIVE COMMITTEE
Whitney Reid Pennell, president of RCS Hospitality Group, formerly Reid Consulting Services (RCS) is a celebrated management consultant, educator, and speaker. For more information, phone (623) 322-0773; or visit the RCS website at www.consultingRCS.com
A Recipe for Member Retention and Attraction When you want to bake a cake, do you follow a recipe? The answer is likely “yes” unless you are an experienced chef or baker.
Recipes help us put together the right combination of ingredients in the right order, and give us an idea of cooking time and when your masterpiece will be done. However, when we want to retain (or attract members), many of us either follow a recipe that worked in another location (or time period) or we abandon the recipe all together in the search for a quick fix. These quick fixes may be programs to attract new members offering discounted fees and dues, the equivalent of a store-bought cake. But does this really give you the quality membership that you desire? Do these members become long-term or do they come in on the cheap (cash and carry), drive up your costs and leave? Or are you simply postponing the inevitable? Eventually, you are going to have to bake that cake from scratch in order to make a lasting impact, and until you discover the differences of a new “kitchen” (club), the “recipe” (membership marketing plan) may need to be adjusted and customized. The same concept applies for membership retention. Member retention equals membership attraction because 50-60 percent of your new members will come from existing member referrals. If you are targeting Millennials, this group in particular relies on personal recommendations more than any generation before. Wavering strategy plus low employee morale plus lack of consistency/accountability plus high turnover plus lack of capital investment plus communication issues plus inability to compete plus financial underperformance equals loss of members. So why wouldn’t we work on these collectively to retain members in a thoughtful, systematic way instead of expecting one “ingredient” to do the trick? Here is my ‘Recipe for Retention and Attraction’ and much like baking a cake, there are ingredients that must go together for the plan to work: • A current strategic vision and plan considering demographic changes and current industry trends. (Casual, technology, family needs) • An engaged, professional, and dynamic leadership. In other words – the board governs, the management manages, and the committees advise. 12
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• Interlocking systems and procedures that work for the benefit of the members. • Identify responsibility and accountability standards at all levels. The ‘blame game’ should not be allowed within your team. Actions, solutions, and progress should be rewarded. • Invest in and maintain facilities. If you have an outdated floor plan, appliances, or kitchen, it will be a tough sell. Stay current with club trends today and keep your facilities in good repair – members notice the details, especially women, who are known to have a more influential role in family decision making than ever before. • A current communications and marketing plan outlining key messaging strategies internally (newsletters, eblasts, website) and externally (social media, membership marketing campaigns). • An on-going training program. Food and beverage as an industry has the highest turnover and there is a noted chef shortage. Beyond that, entry level or seasonal positions throughout the club demand the need for training/coaching opportunities daily. Employees who do not understand that their members are customers and owners in the same body (for a member equity club) are missing the service nuances of a private club. If they do not all do ‘it’ the same way, you will lose consistency. • Manage your culture or it will manage you. Culture is a balanced blend of human psychology, attitudes, actions, and beliefs. Therefore hiring for values, training for success, and consistent performance management will keep your culture strong. • Rewards and recognition. If you have cut your employee benefits and perks, it will be difficult to achieve the member satisfaction levels you desire. There is a reason we have the cliché; “You get what you pay for.” As J.W. Marriott famously said, “Take care of your associates and they will take care of your customers.” • Learn from failure and celebrate success. Adjust after failure. Create buzz around success. BR
BILL SCHWARTZ
FOOD FOR THOUGHT
Bill Schwartz is the founder and CEO of System Concepts, Inc. (SCI). Based in Scottsdale Arizona, SCI is a food and beverage procurement and inventory management consulting firm and the developer of the FOOD-TRAK System, which is widely used in club operations around the country. Bill can be reached at (480) 951-8011 or bills@foodtrak.com.
The Move to Mobile Devices in F&B Management Systems Major changes are happening in the world of computing.
Desktop computer use is declining in favor of mobile devices such as pads and smartphones. Software developers are rushing to accommodate the desire to use mobile devices, but not all devices are good for all tasks. This is especially true for food and beverage tasks. Typical F&B tasks include procurement (ordering and receiving), inventory, requisitions, transfers and recipe development. Most of these tasks have traditionally been handled with paper forms, which in many cases can span multiple pages and contain numerous details for headers and line items. Small screens typical of smartphones are not capable of displaying the information that can more easily fit on desktop displays. The use of fingers instead of a mouse means that software developers must make buttons larger and accommodate pop-up keyboards and numeric pads. While this may be necessary to accommodate the mobile revolution, people continue to use a mouse on desktop displays.
tory and receiving. They can display more items with more data per page and more closely represent the paper forms your staff is more familiar with. As a result, the learning curve is much less significant than it would be with a small form factor device. The primary drawback is the likelihood they cannot be used to scan, unless they are running an app specifically designed for the platform (Android or IOS). Scanners are mobile devices with built-in bar code scanners. In some cases they do not require a WiFi connection and can be synchronized with the host system at the end of the day. They are the fastest way to scan barcodes, since they give instant results. The drawback is their cost, which can reach into the $2,000-$3,000 range per device. Scanners are most useful for taking inventory and receiving goods, but can also be used effectively for requisitions and transfers. Smartphones run apps specifically designed for either Android or IOS. These apps require constant communication with the host. Their cameras can be used to scan barcodes, although they are somewhat slower than scanners
When evaluating, see how many mobile options exist with the system and how close the mobile software looks and feels with respect to the desktop software in order to keep cross-training to a minimum. All these issues should be considered when evaluating F&B systems. While it used to be possible to simply evaluate software for use on a desktop, it is now necessary to look at the software on mobile platforms as well, to be sure it will meet current and future needs as the world moves away from desktop computing. In the case of pads and smartphones, it will be necessary to have good WiFi coverage since these devices are not hardwired to your network. While cellular connections can be used instead of WiFi, they are slower and typically more costly. It is also useful to note that WiFi coverage is difficult in walk-ins and freezers if the doors are closed. Scanners typically do not require a network connection until the time comes to synchronize them with the host system. Pads come in a variety of sizes, but all of them have larger displays than smartphones or scanners. Full-size pads are well-suited for form-based work such as inven14
BOARDROOM | July/August 2017
since they must send the code to the host in order to lookup the item and display it. Because of their limited screen size, they are also unable to display large amounts of data per screen, which means they must use search and swipe functions extensively. Not all F&B management software comes with mobility options, and when they do, the options may be very limited. When evaluating, see how many mobile options exist with the system and how close the mobile software looks and feels with respect to the desktop software in order to keep cross-training to a minimum. Keep in mind that your staff already loves using mobile devices, which makes it possible to improve your F&B control system and your staff’s willingness to collect the required data at the same time. Isn’t it nice when those things go hand-in-hand? Sorry – couldn’t resist that. BR
NANCY M. LEVENBURG
PLIGHTS AND INSIGHTS
Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the President of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 331-7475.
Hiring Millennials?
Here’s What You Need to Know Will you – or your club – be hiring Millennials anytime soon? Banquet servers or bartenders? Bag room attendants? Food runners? Lifeguards at the pool?
Whether for full-time or part-time/seasonal work, the majority of private clubs and golf resorts typically look to this group to round out their employment needs. And this makes sense, because at around 75 – 80 million strong, Millennials make up about the largest segment and about one-fourth of the U.S. population. They’re the children of Baby Boomers. So, what do you need to know about these folks, who were born between roughly 1980 and 2000, and are also termed “Generation Y” or more recently “Snowflakes?” MILLENNIAL FACTS
First, Millennials want you to know that they are multitaskers. They’re capable of juggling many tasks at once, which is great! Unfortunately, what this also means if you’re hiring Millennials is that they can be easily distracted. So be very specific with them if you want them to know that text messaging on the job is unacceptable. Millennials are also very tech-savvy. According to Nielsen, over 85 percent of Millennials own a smartphone, which they touch an average of 45 times per day. Research studies also show that 18 to 24-year-olds send and receive an average of 128 text messages per day, which they (interestingly!) prefer over talking on the telephone! So they’re clearly “connected” – with Mom and Dad, friends, plus Facebook, Instagram, Twitter, Pinterest, and so on. What this means to you is that you’re more likely to get a faster response from them if you send a text message, rather than make a phone call. Millennials also want immediate gratification and recognition. After all, they’ve grown up with profuse praise from parents (“Good job, Michael!”), so this is something they expect. Anticipate that they’ll be looking for you to tell them how important they are to your organization, what a valuable contribution they’re making, and how much you appreciate them. And my advice is to communicate this frequently. For example, if you send something like, “Thank
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you for working so hard for us and our members! Your dedication is amazing! #weekendwarrior” they’ll think you’re real cool. Having a good work-life balance is something else that’s important to Millennials. They’re not as willing as their parents are (or were) to put their personal lives on the back burner in order to advance their careers. They like to “work hard – play hard,” and want to work for organizations that understand and appreciate their need for the occasional weekend whitewater canoe trip or rock climbing venture. Millennials are also into working in teams. Having grown up in an environment that fosters teamwork – and where every player on the youth soccer team got the MVP award – most Millennials actually prefer working in groups. They seek a sense of unity and collaboration over division and competition. And they want mentors who will guide them on the job. WORKING TOGETHER
Because of their different philosophies and approaches, there can be challenges when Millennials and Baby Boomers mix in the workplace. However, according to Steven Covey, “strength lies in differences, not similarities.” So, effectively embracing both generations’ unique perspectives is key for a happy and productive workplace. One thing both groups have in common is that they both want to be respected. Baby Boomers seek respect and acknowledgement from younger workers, and Millennials crave to be recognized in the workplace. Millennials who are new to the workforce need mentors to direct and supervise their work. And Baby Boomers are uniquely poised to assist their younger counterparts with this. In the end, both can benefit. Baby Boomers may learn a thing or two from Millennials about effectively balancing their work lives. And Millennials may learn a thing or two about communicating with people in a technology-free, face-to-face mode. BR
THOMAS B. WALLACE III
BOARDROOM BASICS AND BEYOND
Thomas B. Wallace III, CCM, is a partner and search executive and consultant with Kopplin Kuebler & Wallace, a consulting firm providing executive search, strategic planning and data analysis services to the private club and hospitality industries. Tom can be contacted at (412) 670-2021 and at: tom@kkandw.com
Club Ambassadors Carry the Torch - Part I am·bas·sa·dor – Noun. Ambassadors – Noun, pluralhigh commissioner · consul · consul general · diplomat · legate • a person who acts as a representative or promoter of a specified activity: i.e. He is a good ambassador for the industry.
Synonyms: Campaigner · representative · promoter · champion · supporter Members, we need to get them and keep them. This is, of course, fundamental to private club success. It’s job one. But whose job is it? And who can best perform its function? The answer? It takes everyone. I learned early on from my favorite director of marketing and membership, Max Passino at Mediterra, that every club’s number one ambassador for membership recruitment and retention is any happy member, especially new ones.
Private clubs, for the most part, rely on old school sales and marketing techniques. In a world where everything is moving toward social media, it’s kind of nice to know that some industries rely on tried and true methods. While it might be irresistible to jump into the ocean of technology even in boats that aren’t yet seaworthy, methods that get results for clubs still seem to be branding, culture, reputation and awareness. And how do these things become known? That’s right, good old word of mouth. While everyone else may focus on “creating an online presence”, “networking your story” and “adjusting to the latest algorithms”, you would be wise to pay close attention to what now seems old fashioned. But private clubs are a bit old-fashioned, aren’t they? But in a good way. We are history and tradition. We are ladies and gentlemen serving ladies and gentlemen. We are privileged. Yes, I said it…privileged. Clubs provide an
You know that your club’s reputation is fundamental. You know that the member (and guest) experience is key to club stability and growth. What you may not know is that in these highly competitive times, is how to make sure the culture of your club stands out. How do you “network your story” without floundering in the sea of social media or relying solely on member referral? A new and happy member has no buyer’s remorse because they are happily relieved to see they have joined a club of like-minded individuals. The club amenities might be superb and the service by staff outstanding, but it is the reassurance that the new community of friendships they have just signed on to make, are those with other people just like them. A ground-breaking study on how we seek similarity in relationships, co-authored by researchers at Wellesley College and the University of Kansas seems to prove that our desire for ‘like-minded others’ is hard-wired. The investigation’s findings are presented in “Similarity in Relationships as Niche Construction: Choice, Stability, and Influence Within Dyads in a Free Choice Environment”, published in the Journal of Personality and Social Psychology. So, who provides this reassurance that the community is likeminded? How do we foster a culture of like-minded people? Through member referrals and reputation. Who are most likely to refer their friends and associates? New happy members. Who provides the reputation of reassurance? Ambassadors. 18
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atmosphere of luxury, specific lifestyles, close-knit friendships, service and enviable positions. How do you quantify that through social media? Good luck and good for you if you have come close to figuring it out. But here’s what you know. You know that your club’s reputation is fundamental. You know that the member (and guest) experience is key to club stability and growth. What you may not know is that in these highly competitive times, is how to make sure the culture of your club stands out. How do you “network your story” without floundering in the sea of social media or relying solely on member referral? What if I told you that you could have a team of people whose sole job was to help build your brand, develop your culture and spread the word. The best part? They work for free. In comes the Ambassador Committee. Look for Part Two of “am·bas·sa·dor” to learn how to build and grow an Ambassador Committee. BR
Matt Kellogg
BOARDROOM MAGAZINE’S DISTINGUISHED CLUB PRESIDENT FOR 2016 By Dave White, editor Cover and cover story photos courtesy of Patrick Sola Private Club Presidents of the Year major supporters Kopplin Kuebler & Wallace | The Association of Private Club Directors Sometimes in our lives we’re in need of an ‘angel’… a guardian angel, a financial angel, or for that matter, any kind of angel.
Sometimes, that ‘angel’ just appears… and that’s proven to be the case for the Colorado Golf Club in Parker, CO. It’s also one of the reasons why Matt Kellogg, president of the Colorado golf Club is being recognized as one of BoardRoom magazine’s two Distinguished Club Presidents for 2016. Fred Arbuckle, president of The Bridges at Rancho Santa Fe, near San Diego, and president of 3 Creek Ranch Golf Club in Jackson Hole, Wyoming earlier was featured in our January/February issue. BoardRoom magazine this year is recognizing 22 Private Club Presidents of the Year – 2016, for practicing what they preach – leadership for the betterment of their clubs – board presidents or chairs who serve as the volunteer leaders of their club. It’s the ninth year the industry’s top private club presidents have been honored by BoardRoom magazine for their outstanding work. “We accepted nominations and applications from many different clubs for 2016 and are honoring 22 club presidents from Canada and the U.S.,” explained BoardRoom magazine’s publisher and CEO John Fornaro. “Our selection of the top 22, Fred Arbuckle and Matt Kellogg as our Distinguished Club Presidents, signifies another successful search for leaders who have contributed so much to their private clubs and their member experience.” The impetus for BoardRoom’s top president recognition program comes from its sponsors, the Association of Private Club Directors, the parent organization of Boardroom magazine, and Kopplin Kuebler & Wallace, one of the country’s leading private club industry consultants. Nominations now are open until mid-November the private club industry’s top presidents for 2017, and can be submitted to BoardRoom magazine. “This is only the second time in nine years that we’ve recognized two Distinguished Presidents for one year,” explained BoardRoom’s publisher and CEO John Fornaro. 20
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“But the achievements of both Fred Arbuckle and Matt Kellogg must be recognized. And in President Kellogg’s accomplishments highlight just how valuable one person can be in assuring the sustainability of a club. His achievements are unmatched,” he added. “It is really gratifying that we’re able to assist BoardRoom in identifying some the top club presidents each year,” expressed Dick Kopplin, partner in Kopplin Kuebler and Wallace with Kurt Kuebler and Tom Wallace. “And it is rare to find an individual with the enthusiasm and passion for his club as it is with Matt Kellogg. This is reflected in his leadership style, which is a collaborative effort with his fellow board members. When the membership began began the process of buying out the original developers in early 2011, Matt had just joined, and he immediately took a leadership position in the effort to put the club on a sound financial footing,” explained Kopplin. “Matt became part of a group of 35 members who purchased the club from the previous ownership. This allowed the members to enjoy their club without the financial strain of interest payments on a bank loan. The club has seen a significant growth in membership under Matt’s guidance and additional amenities, which complement the “world class” golf course,” Kopplin added. “Matt was the right person at the right time to lead Colorado Golf Club,” injected Jim Boots, Colorado Golf Club board members. “His work ethic is beyond compare, and he’s used it to lead through some tough challenges. The funny thing is that, because of the incredible work he’s done as president, this club will never need a president that good again. And that’s good – there aren’t many people out there like Matt Kellogg.” Words of praise indeed. President Kellogg authored a real act of faith that set a tone of commitment and willingness to participate in establishing a new club of, by and for the members. The new club faced a series of very real challenges, including: • completing construction of the 44,000-square-foot clubhouse
• expanding a depleted membership roster and make up for members who left during the transition • navigating headwinds in the local golf community – CGC had debuted with a high profile, and the club’s struggle through the recession was well documented, and • retaining the 2013 Solheim Cup, which the LPGA had awarded to CGC in 2009. He joined the club’s board of directors in 2012 and took chairmanship of the membership committee. Under his direction, the club introduced its “preview program,” which gave membership candidates a chance to experience the club for one year while considering whether to join as full members. The program had risks – pricing needed to reflect the true cost of membership, and the new club’s progress needed to be swift and visible in order to achieve high conversion rates. Since its introduction, the preview program has accounted for a significant portion of the club’s new members and has returned a lifetime conversion rate of approximately 70 percent. “Matt works with me as both a leader and collaborator,” offered Tom Ferrell, the club’s membership and marketing director. “As we worked on the preview program, he brought a business vision and an entrepreneurial spirit to the central issue: making the new club attractive to new members by removing their primary objection – concern for the future. “As new members joined, they referred others. Matt made sure to welcome the new members and make them feel at home. The program conveyed confidence, and we worked to the back that up,” added Ferrell. Kellogg became the second president of Colorado Golf Club in 2013, following a successful Solheim Cup that re-established the club as a top-tier championship venue that showcased the progress made under member governance. President Kellogg signified the future in a message to the board, members and staff: Do not rest. To capitalize on membership interest, Matt lobbied for and oversaw the launch of a non-equity membership that further extended the club’s outreach to the Colorado golf community. To date, more than 200 new members have joined Colorado Golf Club during President Kellogg’s board tenure. In 2014, Colorado Golf Club debated and ultimately decided to add another dimension to
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President Kellogg Offers a Diverse Background Matt Kellogg, one of BoardRoom’s Distinguished Presidents for 2016, brings a diverse background to his position as president of the Colorado Golf Club. Matt has spent his entire career in the technology industry, focused on broadband networks and video services. In the last 20 years, he has been involved in multiple entrepreneurial endeavors in the industry, and has successfully started and grown multiple companies. Kellogg currently serves as chief operating officer of Lantek USA, LLC, a global technology conglomerate with manufacturing operations in seven countries and sales and marketing locations throughout the world. Matt also serves as the managing partner of the KZ Venture Group, a private investment partnership focusing on private equity investments in various technology markets. He is founder and managing director of MS2 Capital, an investment firm that seeks innovative technology, product, and service opportunities in global emerging markets. Matt and his wife, Sara, have three children – Jack (12), William (10), and Mairen (8). In addition to Colorado Golf Club, Kellogg is a member of The Club at Pradera (Parker, CO) – (2005– present) and served as club chair from 20102011 and the Inverness Club (Toledo, Ohio) – (2015present). Matt is an active member of the Coore & Crenshaw Society. B R
the club experience by building a spectacular resort-style pool complex. The Paintbrush Pool opened in 2015 and has attracted families and social members to the club. Matt then led the effort to attract the club’s first national championship and, in December of 2015, the USGA awarded the 2019 US Mid-Amateur Championship to Colorado Golf Club. These milestones have all required dedicated work, but Matt and his family have remained among the most active and enthusiastic of the club’s membership. By 2016, Colorado Golf Club had erased the difficulties of the recession and was thriving. President Kellogg, however, has always challenged the club to look ahead. With the club no longer in “restart” mode, the board made the difficult decision to effect a leadership change and begin the search for a new general manager. He brought the same vigor and depth to the executive search process that has marked his presidency, and Colorado Golf Club welcomed Bob Kunz to the team as general manager, chief operating officer in late 2016. “The club president plays an integral role in the selection and negotiation process of a general manager/COO search. My recent decision to relocate my family and assume a new challenge is due in large part to my interactions with President Kellogg,” offered the club’s GM Bob Kunz. “He exemplifies the critical characteristics of a president with transparency, integrity with a disciplined appreciation of the separation between governance and management. “As I navigate my early months, it’s apparent that President Kellogg serves as a strategic thinker and an advocate to set policy with an eye on establishing culture. He dismisses personal agendas and in the event of such a conversation quickly resets the compass to strategic thinking for the betterment of the club.” These are thoughts reiterated by fellow board member Vince Donahue. “Matt has a passion for excellence and a commitment that is absolutely unfettered. His strategic vision for the club is sound, because he is always testing it. He and the board establish the vision, and then Matt has the knack for letting the operational professionals do their work. That is so critical. He knows when to be hands on, and when to be hands off.” Ah, a process of collaboration. All this has set Colorado Golf Club on a great trajectory for the future. Whatever heights Colorado Golf Club achieves in that future, the club and its members will owe a major debt of gratitude to CGC’s second president, Matt Kellogg. All good reasons why Matt Kellogg is one of BoardRoom magazine’s two Distinguished Club Presidents for 2016. BR
RICHARD MCPHAIL
EXECUTIVE committee
Richard McPhail, CCM, is a founding partner of Club Revenue Solutions, LLC, a club consulting firm and marketing partner for RIDE, Golf Channel’s group purchasing program for private clubs. He can be reached at 239-223-2741 or DickMcPhail@aol.com. Visit the company’s website at clubrevenuesolutions.com.
The Elephant in the Club
General Manager Job Security and Turnover - Part I A quarter of a century ago the average tenure of a private club general manager was about three years. Has the situation improved? Sadly, very little, because roughly 25 percent of general managers will change jobs during the next 12 months. The Elephant in the Club is the challenge posed by the short average tenure of the typical general manager. Frequent turnover creates both a tumultuous career path for most managers and weakness in clubs. Strategic plans are often reconfigured in the aftermath of manager changes. The club culture often reflects instability. Each turnover creates uncertainty, then months of adaptation by the new manager, the staff and the members. Instead of the member ideal of camaraderie and consistent momentum, there is a revolving door of new faces. Most general managers have a well-honed ability to execute revised policies and objectives set by their board, which often happens with board member changes. The fallback is often “we need a new manager” rather than supporting the current manager into the new “road taken.” IMPACT
Accepting there are some underperforming managers that should be replaced, changing general managers can generate many negative impacts to the club. Well-run clubs operate within a strategic plan to ensure members years of enjoyment. A key factor in achieving long-range goals is the effectiveness of the general manager, and manager turnover subjects club planning to interruption. Another key factor in the success of well-run clubs is the retention of a well-trained, supported and attentive staff. Turnover of the general manager is usually accompanied by staff changes. Consistent leadership, positive morale and teambuilding are important to club success. HOW DID THIS SITUATION COME ABOUT?
While many board members are highly skilled and exceptionally successful executives in their chosen industry they often have no club industry management background. The general manager is the logical choice to implement the 24
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board’s budget and all policies in club operations. However, many managers encounter frequent micromanagement from board members and committees, stifling management initiative and creating reporting confusion in the staff. General managers must deal with the political realities of a broad-based membership. The board, committees and small groups of activist members with specific agendas may typically drive the direction of the club. The manager often walks a thin rope between individual member demands and activist goals directly opposed to the policies of the board to which they report. Further, managers are often subjected to the actions of a small percentage of disrespectful or inappropriate members who regularly espouse negative words or actions about their club, their manager, or to individual staff repeatedly, without justification. Staff management can also be a common challenge with adequate staffing to meet member expectations balanced against financial restrictions. Some boards lack a firm strategic vision. Few businesses can make rapid strenuous changes and thrive. Some board members may not fully understand the human aspect of the club business where traditions, policies or activities have been embraced by earlier board(s), committees and members. Board members are elected to the board to manage the club to glory, right? Actually, no. Boards and committees need to respect their manager and the reporting structure. The focus should be on the good of the club, and the current and future needs of the entire membership. The general manager is working in a potential political hurricane. Managers must diplomatically balance the varied personalities, conflicts, financial interests and agendas of the individual board members while focusing on the interests of the entire membership. Some board members place a never-ending flow of criticisms and pressure on the manager rather than openly supporting the manager and providing the tools they need to do their job. Sometimes board members find it more expedient to regularly release their general manager and “get a new one”, and sometimes quite often. BR
EXECUTIVE committee
RONALD F CICHY MIRAN KIM SEUNGHYUN “JAMES” JAEMIN CHA
Ronald F Cichy, O.M., professor; MiRan Kim, assistant professor; SeungHyun “James” Kim, associate professor, and JaeMin Cha, associate professor, are with The School of Hospitality Business at Michigan State University.
TALENT and Burning Club Issues What are the challenging, burning high priority issues, problems, and opportunities, from your perspective, that you are seeing at your club?” That was the question private club general managers and COOs attending the CMAA BMI III at Michigan State were asked…and they had plenty to say. MEMBER SATISFACTION
We analyzed the data first by the frequency of key words, indicating themes. Nearly 30 percent of the respondents pointed to club members/membership as the top issue. Within this theme, member satisfaction holds the highest position. No surprise there, yet the challenge of communicating an understanding of the investment that it will take to achieve a heightened level of member satisfaction is real. GMs/COOs and board leaders must first understand, and then set out to explain the plan to other members. A SMARTER goal at many private clubs is to increase members’ participation at social activities and events. Member satisfaction results when the experiences that members are expecting are delivered, plus a little more. This intentionally exceeds members’ expectations and transforms club members into club advocates who engage prospective members.
families is one strategy. If the families do not feel welcome and encouraged to attend social activities and events, club usage drops off. So, too, there must be a commitment from owner-members to fund capital improvements to grow for the next generation of members. In a sense, this is a fiduciary responsibility that all members, as well as the GM/COO, carries forward. TALENT
Those people who create and deliver experiences in clubs have been called employees. They are also sometimes referred to as the help, the internal customers, the staff, the team, the associates, the partners, the cast members, the front of the house and the back of the house (sometimes the heart of the house) and other such descriptors. All of these descriptors fall short in identifying the people who day-in and day-out represent the best the club has to offer. Increasingly, these people are co-creating positively memorable experiences in collaboration with members. Take for example a wedding at the club that the member and the wedding planner develop jointly as a customized, tailored experience unique to the member and their guests. It is the TALENT that makes the dreams of the member a reality, plus a little more. TALENT is a descriptor that is singular (one person) or plural (two or more people). It is capitalized and italicized
Those people who create and deliver experiences in clubs have been called employees. They are also sometimes referred to as the help, the internal customers, the staff, the team, he associates, the partners, the cast members, the front of the house and the back of the house (sometimes the heart of the house) and other such descriptors. All of these descriptors fall short in identifying the people who day-in and day-out represent the best the club has to offer. It is unusual that a person would join a club to be in a place of negativity and fighting among member factions (e.g., put the money into the golf course so it can be enjoyed by golf members versus put the money into the food and beverage to create a more casual welcoming place for families). Members do not want to see every possible change welcomed by negativity. The member-owners are the lifeblood of a private club. Attracting and retaining young members – the Millennials – is one of the keys. Many clubs need more members as their long-time traditional members age. An appeal to 26
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for emphasis, highlighting the adaptability on the part of the TALENT to what each member needs, wants, and expects. The adaptability is triggered by listening, careful listening with empathy, putting the wedding planner into the shoes of the member-owner. Unlike employees or staff, TALENT brings its own attitude, skills, and knowledge (ASK is the acronym). Each TALENT adds ASK to the collective TALENT who go on to co-create the experiences unique to each member and their specific club. BR
MIKE PHELPS Mike Phelps is principal and co-founder of Pipeline, a marketing agency for membership clubs, residential communities and unique experiences. www.pipeline-inc.com.
EXECUTIVE committee
The Elements of Value What is it that gets people to join a club? It’s a question that we might just be one step closer to answering. At the most fundamental level, when prospective members evaluate membership (or any product or service or that matter) they weigh its perceived value against the asking price. Generally, most marketers focus much of their time and energy on managing the price side of that equation, as it often represents the path of least resistance. Managing value or developing ways to deliver more of it can be a daunting task for any company. To help businesses address this, Bain & Company, a leading management consulting firm, recently attempted to classify the elements of value. They identified 30 “elements of value”– fundamental attributes in their most essential and discrete forms. These elements fall into four categories: functional (saving time, reducing cost), emotional (reducing anxiety, providing entertainment), life changing, and social impact. Some elements do matter more than others. The most powerful forms of value live at the top of the pyramid. To be able to deliver on those higher-order value elements, a company must provide at least some of the functional elements required by a particular category. Across all the industries Bain studied, perceived quality affects customer advocacy more than any other value element. Products and services must attain a certain minimum level, and no other elements can make up for a significant shortfall on quality. After quality, the critical elements depend on the industry. More is clearly better – although it’s obviously unrealistic to try to inject all 30 elements into a product or a service. Even a consumer powerhouse like Apple, one of the best performers Bain studied, scored high on only 11 of the 30 elements. Companies that scored high on four or more elements had recent revenue growth four times greater than that of companies with only one high score. Apple excels on 11 elements in the pyramid, several of them high up, which allows the company to charge premium prices. TOMS excels on four elements, and one of them is self-transcendence, because the company gives away one pair of shoes to needy people for every pair bought by a customer. This appeals to a select group of people who care about charitable giving. 28
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Interestingly, most clubs address some of the elements. By definition, a private club should reasonably be expected to address more value elements than most retailers to justify initiation fees and membership dues. So, how should the private club industry use the value pyramid? Here’s one marketer’s perspective: Differentiation: Use the elements of value to identify specific ways of making your products and services more distinctive. Perhaps membership can be considered an heirloom investment for future generations? Competitive positioning: A theme across Bain’s study was that winning companies understand how they stack up against competitors. Clubs should identify where members perceive your strengths and weaknesses and how you might stack up on those relative to competitors. We have yet to run across a private club where membership didn’t provide access to some unique benefit for their competitive market. Functionality: Seek new ways to make member interactions easier and more convenient. For example, allowing members to use the club address to sign for and hold UPS packages not only saves time and reduces risk, but also gets members to the club more often. Innovation: Reveal ideas for new products and for elements to add to existing products. Managers might ask, for example: Can we add therapeutic value to our service? Retention: Most clubs tend to analyze usage by ranking member spending and tee sheet utilization, and throw Hail Marys to those at the bottom of the list. What if clubs surveyed members to learn which value elements are most important to them, and then develop products and services that deliver those elements? Pricing: Raising prices changes the value equation, so any discussion about raising prices should consider the addition of value elements. The amount and nature of value in a product or service always lie in the eye of the beholder, of course. Yet universal building blocks of value do exist. These elements can help clubs start thinking about ways to creatively add value to their membership products, and services and thereby gain an edge with recruitment and retention (and maybe even help to justify a price increase). BR Read the complete article: https://hbr.org/2016/09/theelements-of-value
CMAA GOVERNANCE/LEADERSHIP SUMMITS We have partnered with the CMAA to present the Governance/Leadership Summits around the country, communicating directly to a large number of board members on how top performing clubs are structured and typically function. It is truly a remarkable “one of a kind” day of education, which continues to receive rave reviews from previous attendees.
REGISTER TODAY
Visit www.cmaa.org and click on events to register for these upcoming summits: • Interlachen Country Club in Minneapolis, MN | September 27th • The Country Club in Boston, MA | October 26th • Hillcrest Country Club in Los Angeles, CA | November 16th
USPTA Master Professional, Len Simard joins our team.
Simard joins KK&W with a sterling background. He is currently the Director of Tennis at the New Canaan Field Club in Connecticut since 1998 and recently at the Isleworth Golf and Country Club in Florida from 2004 to 2017. Len was also the former Director of Tennis & Fitness at Boca Lago Country Club in Florida. He is joining the firm to handle all racquet sports and fitness related professional searches and consulting for KK&W’s club clients.
DICK KOPPLIN
SPECIALIZING
KURT KUEBLER
TOM WALLACE
LISA CARROLL
JACK SULLIVAN
ARMEN SUNY
IN GENERAL MANAGER / COO , DIRECTOR OF GOLF, GOLF COURSE SUPERINTENDENT, EXECUTIVE CHEF,
RACQUET SPORTS PROFESSIONAL , COMMUNITY ASSOCIATION MANAGER , ASSISTANT GENERAL MANAGER , CLUBHOUSE MANAGER / FOOD
&
BEVERAGE DIRECTOR AND FITNESS DIRECTOR SEARCHES , AS WELL AS
STRATEGIC PLANNING AND CONSULTING SERVICES FOR PRIVATE , RESORT AND DEVELOPER - OWNED PROPERTIES .
A T L A N TA
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CLEVELAND
W W W. K K A N D W . C O M
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DENVER
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JUPITER
EXECUTIVE SEARCH FIRM OF THE YEAR 10TH YEAR IN A ROW
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NAPLES
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S C OT T S D A L E
PHILIP G. NEWMAN
FRANK LUCAS
CLUB FACTS & FIGURES
Are the Mailboxes All the Same Color?
Considerations in Managing the Residential Homeowner Association Club Residential homeowner association clubs are not a new development within the landscape of American clubs but they often do not get the same kind of coverage in industry periodicals and at conferences as traditional clubs.
These clubs are typically found within gated residential communities where all of the club amenities are held within the corporate structure of the property owner association charged with governing the community. In other words, there is no separate club entity. In the accounting world, homeowner associations clubs are referred to as Common Interest Realty Associations (CIRAs). So, we’ll seek to explain some of the key issues that club chief operating officers (COO) need to consider if they move to such a club community. We focus on three primary areas: Governance, accounting, and tax. While there are many similarities between traditional clubs and CIRAs, there can be significant differences when it comes to these three areas. GOVERNANCE CONSIDERATIONS
In addition to the usual club byelaw requirements, state laws may dictate how board meetings are announced, conducted and reported on. Typically board meetings are open to all residents in the community and residents have certain document request rights under the law, with a not uncommon question being whether they can see salary information. Additionally, the same laws usually provide that any resident of the CIRA can run for the board, so instituting a
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best practice such as uncontested elections may not be an option. The COO needs to be able to work confidently at that level of transparency and accordingly developing a good working relationship with an experienced CIRA attorney should be a priority. In addition to these items, the COO may have to gain a specific state license to be able to manage the community. The COO also needs to have an extensive command of the CIRA’s organizing documents – its declarations, covenants and byelaws – and should be ready to deal with committees specific to a CIRA club such as an architectural review committee. ACCOUNTING CONSIDERATIONS
While some of the terminology and formatting may be slightly different, both the CIRA and traditional private clubs report financial results in three or four basic financial statements. (see graph) Arguably the most controversial accounting issue for CIRA clubs is how they report “common property.” The accounting literature defines this as a CIRA’s real or personal property to which title, or other evidence of ownership, is held by the members in common, or the CIRA directly. There can be diversity in practice in how to account for common property that is not directly associated with the homes or units in the community – principally the clubhouse, golf course and similar club amenities. This can mean that such assets are “on the books” for one CIRA, but not for another.
Chief operating officers need to understand how their CIRA treats such items as it may have a significant impact on other items such as depreciation. Why bother “funding depreciation” if you don’t have all the assets recorded? This issue also can make benchmarking such clubs more art than science. CIRAs are much more likely to have capital reserve studies conducted to predict their future capital needs and funding requirements. The CIRA COO should be familiar with the concepts in such studies including the assumptions used and the various funding methodologies deployed. Reserve studies often lead to CIRAs using fund accounting to strictly differentiate between operating and reserve funds. These funds, depending on how they were established may also be governed by state statutes in terms of how they can be used and how they must be accounted for. The COO needs to be aware of such restrictions as they are often much more rigorous than those surrounding designated funds at traditional clubs. TAX CONSIDERATIONS
Most discussions of tax issues for private clubs tend to focus on those clubs that are exempt from income tax – the 501(c)7 clubs. The common advice usually heard includes “limit your non-member income or don’t participate in non-traditional activities since these sources of income could jeopardize your club’s exempt status.” Other topics such as what constitutes inurement, poor record keeping, and advertising to the public are equally as important for traditional club COOs to be aware of. However, CIRA clubs have different concerns from a tax perspective. CIRA clubs are, effectively, property owner associations and, as such, might wonder if they can file Federal Form 1120-H – the income tax form commonly filed by condominium and homeowner associations across the country. However, the rules for organizations to qualify to file Form 1120-H are fairly strict. The organization must generate 60 percent of its revenues and 90 percent of its expenses from exempt function activities. The definition of exempt function for this area shares some similarities to 501(c)7 clubs with some notable differences. Exempt function revenue is limited to the assessments for the maintenance of the common areas. Member related income could be considered non-exempt for the purposes of qualifying for Form 1120-H if it relates to service revenue, such as food and beverage or golf. Consequently, amenity rich CIRA clubs will find they file the same income tax return as a corporation – a regular 1120.
CIRA clubs must still track non-member income and they have their own unique tax challenges and benefits. One of the biggest challenges relates to assessments and whether or not they should be treated as revenue or capital contributions. Some CIRA tax benefits relate to property taxes and income tax carryforwards, while certain dues may also qualify as exempt from sales tax in some states. The bottom line for a CIRA chief operating officer to understand is that, as a general rule in an amenity rich environment, most CIRA clubs do not qualify to file form 1120-H. PASSIONS RUN HIGH
While we all appreciate how passionate members can be about their club, and often have no qualms in voicing their opinions at town hall meetings or on the club’s social media outlets, passions at CIRA clubs arguably run even higher. The CIRA club member brings not only club issues to the COO’s attentions – but also community and real estate issues. The CIRA’s primary mission is usually to preserve and enhance property values within the community. Consequently, members will voice concerns about their homes and neighborhood, in addition to the typical member concerns over service and quality levels. Budgets and financial results are often challenged aggressively as the homeowner member tries to balance their home economics with the financial challenges of their community. The COO will ultimately find that they are just as much held responsible for making sure the sidewalks in the community are clean, as they are for the quality of the golf course or the tuna fish sandwich. Club COOs new to the CIRA club industry, or those considering making the switch, need to ensure they invest the time and resources to be aware of the unique challenges and differences in this corner of the club industry and where necessary, seek out relevant financial, tax, legal and operational advice. BR Philip G. Newman, CPA, CIA, CGFM is a partner with RSM US LLP and is the Firm’s National Industry Leader for Private Club Services. In that role he works exclusively with hundreds of private clubs across the United States. Newman is also the recipient of BoardRoom magazine’s Award of Dedication for 2016. He may be reached at Philip.newman@rsmus.com Frank Lucas, CPA is a tax senior manager with RSM US LLP and is responsible for firm’s private club tax practice. In that role Frank personally deals with hundreds of private clubs across the United States. He may be reached at Frank.Lucas@rsmus.com
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DIVERSE CLUBS AND DEMOGRAPHICS
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BOARDROOM DESIGN FEATURE P34-44 C2 Limited Design Chambers Club Design Associates HINT | Harris Interiors Judd Brown Designs Lichten Craig Architecture + Interiors MAI | Marsh & Associates, Inc. McMahon Group PHX Architecture
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For today’s diverse demographics, how do architect and designers create something functional, cutting edge, yet aesthetically pleasing for a private club? It’s a major question architects and designers face in today’s highly competitive private club market. Here are some thoughts indicating how architects and designers are approaching the issue. And case studies from the industry’s leading firms shed even more light on a topic of how private clubs can attract and retain members in today’s private club landscape. Kevin P. Lichten AIA, Lichten Craig Architects America is a dramatically diverse place in 2017. The generation in college or university today, future club members, are completely at ease with friends of every national origin, skin color and religion. They are unconscious of the differences, except to enjoy them. For them, a club of “dead white men” and all that that symbolizes holds no interest. Club design must now appeal to these future members, offering some sense of belonging and tradition without seeming formal or exclusive to a narrow or limited social group. The dark paneling and portraits of 19th century club founders no longer appeal. The challenge is to allude to the past yet be open, bright, inclusive, and of the moment. Peter Cafaro, senior vice president, Judd Brown Designs Today and always, even with multiple generations to consider, it is function before form. Even the most beautiful clubhouse will feel strange and uncomfortable to members if it doesn’t flow. Members, guests and even staff must feel comfortable in their everyday interactions in the clubhouse. Today’s clubhouse is the “third space.” It must embody the comfort of home with the excitement of a special destination. The particular design style is determined by an understanding of each individual club’s culture so no matter the style, the space work and feel good. We must create spaces that want to be used! John Cochran, Club Design Associates With the influx of new country clubs that were developed in the 1990s and unfortunately with the closing of these same clubs, clubs today need to appeal to all demographics and age groups. With a variety of tastes and styles, a blending of traditional and contemporary seems to appeal to all types of members.
A new concept that is becoming very popular are areas of the club that can be used all through the day…”anytime lounges.” These areas are designed for members to use as a replacement, for example, to Starbucks. By using high-top community tables that have charging stations, USB ports and WiFi, these community tables usually can sit eight to 10 people. Once the day moves into midday, these same areas can be used as lunch venues and at the end of the day, transform into cocktail lounges. Diversity, multi-functional spaces are the new direction of country clubs and in which these same clubs are sustaining members and attracting a whole new set of younger members.
C2 Limited Design | BOARDROOM DESIGN FEATURE by Craig J. Smith
Strategy-based Design THe Keys To CreATING THe PerFeCT soCIAL BAr s a clubhouse designer, I always enjoy sharing our substantive new approaches to clubhouse enhancements that improve the overall member experience, create a new or enhanced revenue opportunity and streamline operational efficiencies. For the past several years we have been immersed in creating new casual dining venues with a social bar and lounge component. Rather than discussing the ubiquitous décor, color, and furniture trends for casual dining and social bar venues, I will cut to the chase and give you our tried and true touch points to jump start your planning process.
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Five key offerings that make casual dining venues and social bars popular… 1. Drop by the club and have a drink. 2. Eat at the bar. 3. Drop by to watch a sporting event. 4. Pre/post-dinner drinks and socialization. 5. Enhanced décor and all-day menu offerings. Four essential touch points that will keep members coming back to the club… 1. Create spaces that appeal to the broad dynamic of your membership demographic. 2. Create spaces that are focused on comfort, enticing members to “linger longer.” 3. Create spaces that have a fun energy. 4. Create spaces that offer varied dining and social experiences in one venue. Three essential steps to ensure that your new casual dining venue and social bar becomes the welcomed gathering place you have envisioned for your club. 1. Only consider design solutions that will make your club special or unique by clarifying and confirming the club’s personality and story.
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2. Only create spatial changes that will maximize use and return on investment. 3. Only introduce design and furnishing solutions that match the clubhouse’s unique features, current/future needs, and membership demographic. The single most important takeaway that I can give you, no matter what club improvement you may be considering, is this: identify your core identity as a club and how you want to be distinguishable from other clubs. Doing so will ensure each and every clubhouse enhancement will keep you ahead of the competition and relevant to needs and expectations of today’s ever-changing membership demographic. BR C2 Limited Design Associates is an award winning interior design and clubhouse styling firm with studios in Historic Fairfield Connecticut and Williamsburg Virginia. In 2016, C2 Limited Design Associates was named BoardRoom Magazine’s Interior Design Firm of the Year for the fourth consecutive year. Craig J. Smith, ASID can be contacted via email at: csmith@c2limited.com or telephone (203) 259-2555 ext. 312
BOARDROOM DESIGN FEATURE | Chambers by Rick Snellinger
The Baton Rouge Country Club A reIMAGINeD sTory oF HIsTory AND TrADITIoN ince 1916, The Baton Rouge Country Club has been an esteemed private institution in the heart of Baton Rouge, providing its members with the highest quality of service and the finest recreational and social experiences available. In 2012, with nearly a century of countless memories, rich history and deep-seated traditions upon which to build, club leadership began evaluating the club’s programs and facilities in order to prepare for the next 100 years of memories and experiences. Certain areas of the clubhouse, such as the centralized Versailles Ballroom, were reminiscent of a bygone era that celebrated formal evenings of dinners and dancing. Now, members were looking for a place that welcomed spontaneity and embraced a more casual, unrehearsed way of life. In addition to shifting lifestyle trends and evolving club demographics, the club also faced infrastructural issues, maintenance deficiencies and an inadequate and inefficient kitchen—all of which required attention in order to maintain its reputation as a top tier club in Louisiana. Chambers conducted a facilities analysis aimed at addressing these issues and further enhancing the member experience. In addition to replacing outdated MEP systems to avoid costly emergency shutdowns, the kitchen was completed gutted and reconfigured into a state-of-theart facility – a major undertaking and even greater success. These upgraded food service capabilities are complemented by an enhanced member dining experience that reimagined the Versailles Ballroom to create the new Terrace Room – an adult casual dining space that replaced the central dance floor with a large, circular bar. The Terrace Room features a variety of dining, bar and lounge seating, as well as large floor-to-ceiling windows overlooking the golf course. A new gallery is nestled between the new kitchen and Terrace Room and celebrates the club’s wine program with unique wine display cabinets. The gallery also features a built-in buffet with permanent induction elements under a granite slab top, providing remarkable convenience and flexibility for the club’s various dining and social events. The 2014 renovation plans also included expanding the club’s previous outdoor patio to become an expansive covered outdoor terrace, providing members with a shaded area to enjoy the club’s picturesque landscape speckled with lush foliage and live oak trees. The new terrace also boasts large TVs, overhead fans, and an outdoor kitchen, which creates a unique experience previously unavailable to members. Even in the heat of the Louisiana summer, the new terrace is always full! “The members are incredibly happy and the Terrace Room’s reputation has expanded far beyond the club’s walls,” said BRCC’s general
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manager Michael Masson. “It’s the most talked about bar in Louisiana. Everyone wants to be here!” In the last three years since implementation, BRCC has seen an enormous increase in use – member dining F&B sales alone have increased 31 percent. “Renovation and investment in member dining has helped bring our stockholding membership back to capacity,” Masson added. And though the Terrace Room’s bar-style atmosphere was originally intended to appeal to the younger generations, the club’s older members simply can’t get enough. The new space and amenities have created a notably vibrant atmosphere that encourages socialization of members of all ages and enhances the club’s sense of community overall.
Programs like this easily demonstrate what an exciting time it is for the private club industry. Clubs are evolving and reinventing themselves to respond to new generations of members with unique interests and imaginative visions for the future. As private club planners and designers, we take pride in helping clubs define exactly what that vision is for their specific and diverse memberships so they can provide their members with an unparalleled experience. Above all else, the key to providing such an experience is to take the time to listen to the members and truly understand their needs. The outcome? A triumphant revival that will prepare the club for generations to come. BR Chambers has worked in the private club industry since 1945. Today, as the largest hospitality design firm in the nation with a singular purpose of working with private clubs, Chambers is a thought leader in the industry dedicated to the advancement of the member experience. President and CEO Rick Snellinger, recently named by Golf Inc. magazine as one of the top 10 individuals shaping the future of private clubs, leads the firm.
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Club Design Associates | BOARDROOM DESIGN FEATURE by John Cochran
Repurposed Spaces a Boon to Clubs ith competition between clubs on the rise, there is a need for Management to develop ways to compete with the Club down the street. Therefore, clubs are working on ways to repurpose, renovate or find undiscovered real estate. It can sometimes be a struggle to find ways to turn areas of the clubhouse into profitable square footage. Case in point is the Barton Creek Resort & Country Club. Management needed to come up with new ideas to separate them from the highly competitive area of Austin, Texas. The club’s staff discovered an area behind a cinder block wall of the fitness center storage room that had been carved out of the limestone hill during club’s construction. Over that last 30 years the limestone wall with ever-present underground water had turned the limestone wall into cave like a sediment stalagmite wall. The ideas of what to do with this wonderful find was eventually transform into the “Tranquility Lounge” where members can retreat after a soothing massage along with a nice glass of wine. As far as we know, there is no other lounge like it in this part of the country or anywhere in the U.S. Another example at Barton Creek was the outdoor open air pavilion, a structure that was an eyesore and was unusable space during the hot days of the Texas summers. With exposed structural I-beams, a space with no air conditioning and no architectural significance, it became a challenge to convert the outdoor “barn” into something special. But the old barn also offered a spectacular view of the Texas Hill Country.
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PAVILION / BARTON CREEK RESORT & COUNTRY CLUB
So, with management’s feedback, programming and calculations for the return on investment, it was determined that the club needed to romance the view and transform this pavilion into something special. This area needed to accommodate large member functions and at the same time give the members a place where they could comfortably enjoy the hill country view. Therefore, with the task at hand the plan was mapped out to cover the I-beams with Austin stone, and create a warm and inviting fireplace for cold winter nights. Also, by adding sliding glass panels and HVAC the temperature can be controlled 360 days of the year. Last, but not least, with the increase of younger members trying to find a club that can meet their casual needs and with the whole world easily accessed from your laptop or better yet, your smart phone, clubs need to cater to this demographic as well as every age group. A club needs to be, if possible, everything to every member. By taking an area and converting it into an “allday/everyday lounge”, you have an area that will be used from open to close. Community tables with USB ports and charging stations enable members, with their laptops, to work in the morning, have lunch middle of the day and finish the day with a cocktail or glass of wine. With the ever-changing landscape of the club business…managers, members, club designers and architects need to constantly keep looking forward and find new and innovative ways to be competitive. BR John Cochran is with Club Design Associates of Fort Worth, Palm Desert and Scottsdale. He can be reached at (817) 810-0333 or via email: cochran.john.r@gmail.com. For more information visit www.clubdesignassociates.com
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ANYTIME LOUNGE / THE CLUB AT SONTERRA
BOARDROOM DESIGN FEATURE | Harris Interiors by Kelley Harris
Interior Design Spotlight sATIsFyING A DIverse MeMBer DeMoGrAPHIC oday’s club culture is evolving and demands updated and fresh interior design. Younger members desire a casual and relevant aesthetic. However, we cannot forget about the older generation. In most cases, there are ways to work with what you have for maximum return. Updating your clubhouse can be overwhelming. Engaging a design professional who can gather the proper information to create a road map for your club’s future will serve you best. It is important to evaluate your current needs while also assessing future demands for membership growth. Most clubhouses have been designed with heavy traditional architecture and decoration. Fortunately, traditional and classic architecture will never go out of style. It is the finishes, furnishings and accessories that are likely to expire more quickly. For example, a dark stained room, complete with paneling and heavy ceiling beams, can be easily updated with a coat of lighter paint. New carpet and decorative lighting breathes fresh life into an existing space. Take it a step further, mixing furnishings with more transitional or contemporary lines and existing antiques. The combination of a classic architectural backdrop with updated furnishings makes the new space relevant. Furthermore, lighter and more casual finishes create an approachable space for families and younger members. The new technology of finishing materials, like indoor/outdoor and high performance fabrics, vinyl wallcoverings, durable paints and engineered hardwood flooring allow clubhouses to be easily maintained. Attractive and functional – that’s the name of the game! Artwork and accessories complete the new look and can be changed periodically to refresh your club. Abstract art and accessories perfectly compliment a traditional backdrop. Adding a mix of your club’s memorabilia makes for personal spaces that tell your story. Creating comfortable and welcoming spaces entices members to gather, stay for dinner, have another cocktail and linger longer. The beauty of this concept is that it appeals to all ages. The younger generation will respond to the fresher look, while the older members will appreciate the familiarity and the nod to the classics. B R
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Harris Interiors is a full-service clubhouse interior design firm based in Atlanta, Georgia. Please visit our website for additional information www.hintatlanta.com, or contact Kelley Harris, principal interior designer, at:(404) 492-5997 or via email: kelley@hintatlanta.com.
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Judd Brown Designs | BOARDROOM DESIGN FEATURE by Peter Cafaro
Are Experts Really That Important? WHAT Is AN eXPerT?
The dictionary says: Noun: a person having, involving, or displaying special skill or knowledge derived from training or experience If you found out that you needed a joint replacement or were diagnosed with even a simple illness, how likely are you to consider a doctor who is “trying to get a foothold in this sort of thing?” More likely you’ll search out the best and the brightest and the Doc who has done this over and over again until it has become automatic. So, shouldn’t this same practice apply to planning, architecture and interior design in the private club industry. Our industry is blessed with individuals and companies that know club operations and design inside and out. People who can anticipate and address issues before they even arise. People who have literally, “written the book” on clubhouse
planning and design. They understand the “quirks” of dealing with volunteer boards and varying membership demographics. Clubs of every type throughout the country are faced with a changing face of membership and the resultant need for adjusting facilities to meet current and future member expectations. Many experts say we are at a crossroads where most clubs – those who understand the future and prepare for it – will flourish while others who stubbornly dig in their heels and cling to the attitude that “it’s worked since we opened, it will continue to work just fine”, will not be so fortunate. There has never been a time when reviewing and adapting your current non-golf course facilities has been so critical. Much of a club’s future rides on the success – or failure – of a capital plan. Should it not then be automatic that clubs seek out be best and the brightest in the field to guide them to success. Club boards are composed of highly successful, savvy and driven individuals, all of whom have developed myriad relationships throughout their personal and professional life. It is not a stretch that an architect or two might be among those relationships. We all want to do business with our friends, or a fellow member, but in the case of developing a vision for the future of your club, would you prefer to trust a friend or put your faith in a proven, experienced professional – an expert? I am fortunate to find myself in front of boards and committees practically every day. They are regularly asking my opinions on the state of our industry and the hottest items being introduced into today’s clubhouses. Naturally there is no shortage of discussion topics and I love engaging them, sometimes for hours on a variety of subjects. When all the subjects are talked out though, my final leave behind is always something like this: “I would love for the club to hire my company for your project. But, should you chose not to, please hire someone like us. A company with deep club specific experience and a proven track record of success and creativity who will get the job done right – An expert. BR Peter Cafaro is the senior vice president of Judd Brown Designs with responsibility for marketing, business development and member communications. He can be reached at (401) 721-0977, ext. 203 or via email: Pcafaro@jbd.cc
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BOARDROOM DESIGN FEATURE | LICHTeN CrAIG, Architecture + Interiors by Kevin Lichten
Small Changes in Décor And Offerings Create a Dramatic Shift ou could always walk into this downtown woman’s club and order a drink and a bite to eat, but members seldom did. Maybe it was asking a staff member to retrieve a glass of wine from another floor or deciding whether to sit down for a full lunch or dinner in the formal dining room that discouraged you from stopping in for an impromptu use of the club’s food and beverage offerings. There was also no dedicated space for members to meet a friend for a casual chat over a cocktail. Fortunately, the clubhouse contained underused spaces that could be repurposed easily. Our firm helped identify the cause of this missing amenity and quickly found just such a space that could solve the problem. Members loved a beautiful, quiet paneled library space but rarely used it. Busy lives no longer allowed a leisurely afternoon of pulling a book off the shelf and settling into a comfortable chair. Likewise, an adjacent vestibule was rarely used, except as a room to walk through. Following a strong recommendation, the board approved the addition of the club’s first legitimate dedicated bar to be located in the unused vestibule. Now members could walk right into a lovely room, stroll up to a bar, sit at a stool and enjoy a drink alone or with a friend without seeking out a staff member. The casual but elegant atmosphere feels at home with the club’s historic public rooms yet suits members’ busy lifestyles. And the location enjoys dramatic views right from the bar stools of the downtown shopping boulevard just outside monumental windows. And all of this was accomplished without any significant architectural changes to the room.
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A mahogany paneled bar and leather upholstered banquette seating was added to the room but none of the existing finishes required renovations. This fall, a dramatic black and gold mural will be installed…a painting featuring Diana, the club’s icon described in the 1920s as “a girl running, graceful and restrained, but intent on the goal.” Adjacent back of house spaces allows for bar storage and service. Next door to the new bar the existing library offered new opportunities. Our quick studies showed that with a few subtle changes the room could accommodate casual dining that would work easily with the new bar. Food could support beverage! Four tops, café tables and comfortable lounge chairs and sofas replaced library furniture. A beloved and highly important, but barely visible, Baroque portrait was highlighted with a recessed ceiling fixture. Original wood paneling was restored and burnished. The dark former library suddenly became a light and airy food and beverage venue – a comfortable and relaxed enclave within the historic club. And for the first time, the club added small plates to their dining offerings. Now members have the opportunity to stop by the club easily, at any time and enjoy a leisurely drink and snack, invite friends to join them or run into fellow members, all within original club spaces. They now enjoy the views of downtown in rooms that have been gently given new lives and purposes! BR Kevin P. Lichten AIA is with LICHTEN CRAIG, Architecture + Interiors, New York. He can be reached at (212) 229-0200, ext. 120, or via email: lichten@lichtencraig.com
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Marsh & Associates (MAI) | BOARDROOM DESIGN FEATURE by Bryan Webb
A New Clubhouse for Columbine BuILDING MeMBersHIP “IF you BuILD IT He (THey) WILL CoMe” INsPIreD rAy KINseLLA IN THe MovIe “FIeLD oF DreAMs”, To TAKe A CHANCe To BuILD soMeTHING THAT MANy THouGHT WAs A FooL’s errAND.
MAI endeavored to create spaces that were welcoming, interactive environments for both families and adults that would fulfill Columbine’s vision for a club that embraces the outdoors, provides a multitude of offerings, and embodies casual elegance. Passing through the oversized entry doors, members are welcomed by soaring spaces and Columbine Country Club (CCC) in the Columbine commanding views, leading to the expansive terraces. This immediate connection to the outValley near Denver, Colorado may not have heard doors is a critical design part to deliver the relaxed lifestyle the membership desired. voices, but they too were inspired to build something Fire pits, shade structures, a generous activity lawn and retractable glass walls invite they thought would encourage people to come. And the living spaces to spill outside increasing the club’s amenities. Interconnected dining they were right. As a traditional, golf-centric country spaces offer both adult and family dining conjoined by a communal lounge. club, Columbine faced the same challenges to remainSporting a 20-foot wide folding window, the bar crafts a two-sided indoor-outdoor coming relevant as many of their fellow clubs. Marsh & munity hub. The club also offers upper-level dining spaces with terraces that embrace the Associates, Inc. (MAI) was brought in to help generate vistas of the renowned CCC golf course and Rocky Mountains. A well-appointed wine celmember support and design the new clubhouse. Focus lar with adjacent President’s room, and a private party chef’s table in the kitchen, will add groups, town hall meetings and months of committee to the variety of dining experiences. collaboration were essential in distilling the members’ Year-round activities at Columbine C.C. anchor the community, and the swim center is extensive wish list into a cohesive vision. just a part of the wellness program the club will soon offer. Columbine’s new clubhouse concepts were Columbine will boast championship and Par-3 golf courses, swimming pools, tennis and thoughtfully crafted, garnering overwhelming supbocce courts, plus a new 5,000 square foot fitness center. Movement rooms, a juice bar, port for a new facility. The club wanted to not only massage and physical therapy spaces will accompany the fitness amenity. target industry trends but to become a leader. The A highly-anticipated area is “The Bunker”, a man cave for the whole family, with golf goal? To create an amenity-rich social activity hub, simulators that double as movie screens and gaming displays, offering a place to just anchored by a robust outdoor connection that is cel- hang out. Kids can gather in the upcoming Kids Zone after dinner, during dad’s morning ebrated year-round in Colorado. workout, after school for homework or just for games and entertainment. “We did our homework, identified our place in the Bratcher noted that members are excited by the new offerings, as they demonstrate the market, and created a clear vision for the memberclub’s commitment to welcoming the entire family. ship. And the results have exceeded all our expecta“The new clubhouse is so thoughtful and representative of our values that the membership tions,” said general manager Michael Bratcher. has since exploded. We have already welcomed well over 100 new golf members while more Family has long been an industry trend, but than doubling our initiation fees – and the clubhouse isn’t even done yet!” said Bratcher. through listening to membership MAI understood the Columbine C.C. followed the voice of membership to rebuild, and already has hit a members’ meaning went beyond the traditional defi- home run. BR nition. Family can be a close group of friends, neighBryan D. Webb is a partner and director of design with Marsh & Associates Inc., a clubhouse architecture and interior bors, or you and your spouse. In the end, it is all design specialist. He can be contacted via email bwebb@mai-architects.com or via telephone (720)266-2582, ext. 512. about social gathering.
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BOARDROOM DESIGN FEATURE | The McMahon Group by Bill McMahon
The New Direction in Club Facility Planning ake up everyone! There’s a new world in club design. A new world is opening up for country clubs in how they are being changed to attract the next generation of members. And these changes are very much affecting clubhouse and recreation facility designs. The traditional golf club of yesteryear was changed to the country club we know today by adding a larger clubhouse, swimming pool and tennis courts. And again, our country clubs are now being transformed into a new version of country club, i.e., the family recreation clubs. These visionary clubs carry the name country club, but they are now progressing far beyond the once seasonal country club, which primarily emphasized golf. This transformation in our traditional club concept is being caused by the changing wants and needs of our future Millennial members. These future members have lifestyles which value: • A great diversity in recreation activities Have short attention spans that five hour rounds of golf don’t appeal to • Have concerns about the environment and what we should be doing to protect it • Have tremendous concerns about health and wellness affecting everything from eating, playing and exercising • Have become addicted to technology • Have respect for all types of diversity in people, i.e., no snobbery.
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So, with this new generation of our children and grandchildren, here’s how the country club of the future will be changing so it can adjust to the new society it serves today and will serve tomorrow. The additive effect of starting with the golf course and adding recreation facilities wherever vacant land was available has resulted in an overall layout of facilities, which isolates each activity and the members who use them. And with the addition of more and more recreation activities at our clubs (pickleball, bocce, croquet, paddle tennis, par 3 courses, extensive wellness center, spas, etc.) we can see that the old country club design model for golf, swim, tennis and dining; is no longer working. Here’s the new country club design model for the country club of the future, and this model doesn’t require tearing down existing facilities. Simply put, we need club facilities that are designed to bring members together, rather than keep them apart. Today’s clubs are silos of club activities. Golfers stay with golfers. Tennis players stay with tennis players. Our existing clubhouse layouts with all the recreation facilities clustered around it worked when we only had golf, tennis and swimming facilities at a club. We, in effect, have outgrown the old country club model. The new country club model serves the main clubhouse as the dining and social center of the club. Many aspects of golf like its locker rooms, grill rooms, pro shop and support areas can stay in the main clubhouse. However, all other recreation offerings the club has should be relocated in a new recreation/social hub near but separated from the main clubhouse so it can be expanded as the club increasingly adds new recreation offerings.
The primary advantage of combining all or as many as possible recreation offerings in this new social/recreational hub is this: it encourages interaction among all members and their families, and this should be a primary mission of every club. Now you might ask, has this been done successfully in the past? Yes, it has in such clubs as Royal Oaks in Dallas, Paradise Valley in Scottsdale and Woodmont in Maryland. But one of the best and most current examples is Interlachen Country Club in Orlando. This fine country club had the typical country club layout for golf, tennis, swimming and fitness with its large clubhouse. Now while the club’s golf and clubhouse offerings were fine, nothing else was. And a nearby racquet club was attracting all the young members.
Fast forward and spending about $10 million to create its family recreation and social center with the latest pool, fitness, tennis, quick casual dining (inside and out) along with croquet and water playground. Now all the young members are joining Interlachen. Interlachen now has the country club of the future and it is reaping the rewards from visionary leaders. So, look at your club. Is your facility layout meeting the demand of your membership? Does it bring members together or keep them apart? Don’t spend another dollar on facility improvements until you have analyzed your facilities to be sure they are helping to achieve your club’s strategic goals. BR Bill McMahon, Sr., AIA, OAA is chair of the St. Louis, MI-based The McMahon Group. He can be reached at (314) 744-5040 or via email: wpm@mcmahongroup.com July/August 2017 | BOARDROOM
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Judd Brown Designs | BOARDROOM DESIGN FEATURE by Erik B. Peterson
How to Add Casual Dining to Your Club hat do you do when you are the world-famous golf club Desert Mountain in Scottsdale, Arizona, featuring six Jack Nicklaus Signature Golf Courses? Plan an over-the-top renovation to your spa, fitness center, youth center and add the perfect casual dining grab-n-go café. Every club is hearing from its members that they want a dining experience that is casual, family oriented, healthy and offers an experience like Starbucks, Panera Bread with a cyber café. The key to a renovation of this magnitude is that it must be crafted the right way and hiring a skilled design professional will pay dividends down the road. The management team at Desert Mountain needed an architect that could design a space that appealed to the modern member, and interviewed several candidates. Like many clubs across the country, Desert Mountain primarily offered formal dining in any of its six clubhouses. The property is vast and yet members did not have a place where they could grab their favorite coffee, a pizza or their favorite bites, without going to a formal dining room or the walk-up pool grille. To fill this void, the qualified team designed Café Verde anchored by the fitness center expansion.
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The café has become the all day and evening social hotspot at the property to gather and meet. The members really love having a casual place to go where they can either grab-n-go delicious healthy options from a cool menu, enjoy a latte and the morning paper, or meet up with friends and family to hangout before or after a workout without feeling like they should get dressed up. The private club demographic is changing and now more than ever casualness is a vital ingredient for the next generation modern member. Gone are the days that clubs only offer formal restaurants, large ball rooms and hotel style environments. Club members want to feel like they are in a custom designed space that offers them a dual design, like a custom home combined with a trendy restaurant. When choosing an architect keep in mind the architectural firm should be a leader in luxury residential, hospitality and golf club design. It’s all about the experience and members want to have it all at their fingertips…the golf club, spa, fitness center and the ease of casual dining. Not to mention the bragging rights to promote via social media. When designing a grab-n-go style eatery it needs to be branded in a certain way and to be successful these are the key elements: • Naming • Logo • Menu • Staff • Uniforms • Sustainable casual vibe • Look and design. Additional key elements when designing the casual café environment offers walk up ordering and picking up different prepared menu items, along with the option for casual seating. The seating should be soft and comfortable and able to accommodate parties of one or large groups with chairs and booths. Providing easy entertainment like large screen televisions gives members the ability to watch the news or sporting event. The menu plays a big role in the experience as the foods needs to be fresh and delicious but also colorful incorporating color like reds, oranges and greens. Lastly, patio dining is very popular. Designing the patio space must be not only for comfort but also offering amenities that allow for year-round indoor-outdoor seating that accommodates all climates. Every club is reinventing what the new modern member needs and looks like in an effort to grow market share and continue to drive revenue. Renovations are the key to redesigning not only what the space will look like but will add to the overall experience the design will offer. The grab-n-go café style is gaining more and more popularity but the key to the success lies in the vision that your architectural team designs that will give longevity to the project. BR Erik B. Peterson is president, PHX Architecture and can be reached at (480) 477-1111 or via email: erikp@phxarch.com
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HENRY DELOZIER
GLOBAL PERSPECTIVES
Henry DeLozier, a recipient of the BoardRoom magazine Lifetime Achievement award for 2014, is a principal of Global Golf Advisors. You can contact him at hdelozier@globalgolfadvisors.com.
Managing Your Most Important Asset The Brand
Some say that private clubs are not brands. Those same people proudly disavow a connection between their club and the fashionable marketing term on the grounds that private clubs – certainly their facility – are somehow above the commercial fray that characterizes every other buyer/seller relationship.
Hogwash! Not only are clubs brands, the truth is they have no choice in the matter. Your club is a brand in the same way that Apple, Volvo and Google are brands. That’s to say that those companies make a promise to consumers – Apple promises cool technology, Volvo a safe automobile and Google answers at the speed of a mouse click. Their ability to make good on those promises consistently and at what consumers consider a fair price determines the strength of their brand. It’s no different for private clubs. Clubs overtly and implicitly make a promise to provide a certain type and level of service. In doing so, they create a brand for which they are known. It’s not like they can opt out of that reality. To deny the existence and role of a brand is to relinquish one of a club’s most potent advantages in growing and maintaining a successful business. Brand equation: Simple math The classic brand equation looks like this: Value = Performance Price The key to building value in the eyes of the consumer is in increasing the numerator to increase the denominator. When you do that, you attract more members who are willing to pay more and who never want to leave. The most important thing to know about this equation is that consumers (members and prospects) control the left side. Their definition of what constitutes value is the only one that matters. You don’t get to decide for them. Club management plays on the right side of the equation, using its knowledge of its members and market to increase performance (services, amenities, facilities) and carefully adjust price to (hopefully) influence the consumer’s perception of value. A club’s brand becomes its competitive difference. Yet few club directors have a clear understanding of brands, 46
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brand management and how to leverage their brand to their advantage. WHAT IT’S NOT
Some clubs mistakenly think that a brand is a slogan or a tagline. Well Fargo’s tagline is “Together We’ll Go Far.” That’s not its brand. Its brand is whatever most consumers thinks it stands for. The tagline for UPS is “United Problem Solvers.” That’s not its brand, although the company would like for you to think that by taking advantage of its trucks, planes and people, it can solve your shipping problems. Its brand is a trustworthy and reliable company that’s been around for a long (110 years) time. A brand is a collection of messages – delivered in multiple ways – to demonstrate the trustworthiness of the promise. The brand is everything the club does – and doesn’t do – to prove its promise. Brand management then becomes everything you do to create and sustain the brand, starting with the strategic plan, which commits management to behaviors and beliefs that support the brand. In addition to tangible actions, such as course conditions, operational excellence and professional staff, there are also intangible factors that make a brand statement. The staff’s service attitude, a reputation for conservative governance … everything right down to the fluffiness of the towels in the locker room also influence brand perception. What’s more, branding forms connections between the prospective member and the club and reinforces the core values of the club for its existing members. BUILDING AND PROTECTING BRAND VALUE
Global Golf Advisors, an international consulting firm that specializes in serving private clubs, estimates that only about 300 of North America’s 4,400 private clubs (approximately 6.5 percent) are not actively seeking new members. That leaves the vast majority in a state of constant recruitment. It’s estimated that roughly one-third of North American clubs are financially secure while one-in-five is at risk financially. What determines success? What separates winners from losers and creates the ever-growing list of average clubs? With few exceptions, our experience points to deliberate and well-executed brand strategies.
Following are five points of focus for protecting and building your club’s brand value: 1. Understand market segmentation. One of the defining features of a luxury, must-have brand is that only a few people can have or get it. Scarcity and the threat of being left out are powerful motivations. It is exclusivity that preserves brand power for private clubs. While the club may cater only to a small segment of the market, it is very important that the broader market is aware of the levels of excellence achieved and the luxurious lifestyle enjoyed by the club’s members. Having something that many want adds value to the club brand. 2. Establish your own standards. Leading brands establish well-known standards of excellence. Private clubs must be highly deliberate in setting such standards and vigorous in sustaining and exceeding their own standards. Unmet standards of excellence become a brand lie that diminishes brand authority. 3. Achieve categorical excellence. Market-leading private clubs sustain excellence across service and amenity categories. Excellence in all categories of service, amenities, and programs increases brand authority.
4. Treasure symbolic value. Warren Buffet, the exceptional investment guru, searches for companies with what he calls “intrinsic value.” Intrinsic value is often the culture, management excellence or underlying attributes of the company that seldom show on its balance sheet or in its annual report. The symbolic value of top-performing private club is made robust through trustworthy leadership and governance, regular and transparent communications, attentive and accomplished management and an exceptional lifestyle proposition. The lifestyle proposition of top clubs is that members could not – and would not – imagine their lives without the club. 5. Audit your brand regularly. “Put your eggs in one basket…and keep your eye on that basket.” That pithy advice should guide club leaders who understand the power of a respected brand. A strong brand provides certainty in an uncertain world and safe haven in what may seem a dangerous world. Club leaders should execute an annual evaluation of their club’s brand. There’s no doubt that private clubs are brands. The only question is what promises are they making to their members and prospects and are they delivering on those promises? Those that are have positioned themselves for long-term success. BR
Baton Rouge Country Club Baton Rouge, Louisiana
Thought Leaders & Industry Experts
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July/August 2017 | BOARDROOM
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MELISSA LOW
LEGISLATIVE COMMITTEE
Melissa Low is the senior director, Communications & Advocacy, for the Club Managers Association of America. For the latest information on these and other issues affecting the club industry, please visit CMAA’s Legislative Report blog at: www.cmaa.org/legislative.aspx.
Legislative and Regulatory Update It has been a busy first few months of the year, with a new President and a new Congress. Here’s a brief overview of what has happened so far this year, and what to watch. AMERICAN HEALTH CARE ACT
In early May, the House of Representatives passed HR 1628, the American Health Care Act (AHCA) of 2017 by a vote of 217 to 213. This measure eliminates several of the unpopular tax provisions of the Affordable Care Act (ACA) including the individual mandate penalties to have insurance and the employer mandate. Relevant to clubs specifically, the AHCA repealed the employer mandate which requires qualifying large employers to provide affordable health insurance to all employees. The US Senate has already indicated that it will undertake consideration of its own effort to repeal and replace the ACA. In a statement, Senate Health Committee Chair-
this action, no further visas would have been available until October 1. While this fills the immediate need to help seasonal businesses this year, long-term reform is still needed. Legislation pending in both houses - s.792, the “Save our Small and Seasonal Businesses Act of 2017” and HR 2004, the “Strengthen Employment and Seasonal Opportunities Now (Season) Act” - would make the returning worker exemption permanent as well as other reforms to the program. WATERS OF THE U.S.
In late February, President Donald Trump issued an executive order (EO) directing the Environmental Protection Agency (EPA) to proceed with rescinding or revising the Waters of the US (WOTUS) rule through the regulatory process. In the EO, the President directs that the new rule should respect the roles of Congress and the states, and cites the previous 2006 legal opinion of Justice Antonin Scalia in Rapanos v. United States as a starting point.
In late February, President Donald Trump issued an executive order (EO) directing the Environmental Protection Agency (EPA) to proceed with rescinding or revising the Waters of the US (WOTUS) rule through the regulatory process. man Senator Lamar Alexander (R-TN) indicated that the committee plans to take its time on the effort. If and when this measure is passed, reconciliation between the House and the Senate would need to occur. It is likely there will be significant differences between the two measures. H-2B VISAS
The FY2017 spending package, approved in late April, provided much-needed relief to clubs and other seasonal employers who rely on H-2B visas to fill peak season jobs at their businesses. A provision included in the measure would give the Department of Homeland Security the authority to adjust the annual limit of 66,000 visas. The increase in the limit would be limited to no more than the maximum number of visas issued in years when the returning worker exemption was in effect. It is estimated the new cap could be approximately 84,000. Before this move, the H-2B visa cap had been met on March 13, 2017. Without 48
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The WOTUS final rule dramatically expands federal jurisdiction over waters and wet areas in the US, including most water bodies on golf courses. The final rule was published in the Federal Register on June 29, 2015, and was slated to become enforceable 60 days later. The rule has been legally challenged by 32 states, numerous industry groups and environmentalist groups on both procedural and substantive grounds. In October 2015, a nationwide injunction was issued by the Sixth Circuit of the US Court of Appeals which stayed the rule from enforcement. That injunction is ongoing. The expansion of the WOTUS rule would have significantly impacted club operations and budgets as clubs will be required to obtain costly, federal permits for any land management activities or land use decisions in, over or near these additional regulated waters. The EPA has begun the rulemaking process with this directive in mind, and further action is expected in the near future. Stay tuned for the latest information! BR
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Lisa CarroLL
house committee
Lisa Carroll is a search executive and consultant with Kopplin Kuebler & Wallace, LLC. She specializes in executive chef searches. The company has offices in Scottsdale, Jupiter, Atlanta, Denver, Cleveland, and Naples. Lisa can be contacted at (561) 596-1123 and at lisa@kkandw.com.
Embracing the Local Culture “Be brilliantly indigenous.” That’s a quote from Arch Stokes who spoke recently to a group at Georgia State University. As a recruiter, those words truly resonated with me – both to share with the candidates that we place, as well as for learning and understanding the culture of each club that I work with. Stokes, an attorney who specializes in the representation of hospitality and restaurant clients, described how embracing the local culture and community in which you visit or move will make or break you. I thought it was especially applicable to new general managers and other department managers who move to a new club culture, a new community, a new region of the country or even a new country. Put yourself in the shoes of the locals and embrace the community culture before you try to incorporate change that is lasting. Less than a week after hearing Stokes speak, I met in Puerto Rico with highly respected hotel general manager, Remus Palimaru, who works at a luxury brand hotel. He shared his insights, and showed me the luxurious accommodations and amenities his hotel offered. While touring the property, Palimaru spoke about building a culture and opening properties globally, and explained that one of the most important things contributing to his success with the company was that, in every country he worked (in both permanent positions as well as temporary hotel opening teams), he truly embraced the local culture. His employees all described him as being a true leader in the industry and attributed his successes to those qualities of adaptability and earning local respect while creating a culture of luxury service. How does he embrace the local culture while still building and elevating a high level of service? Here are his thoughts: Before building a company culture, an immersion must take place in the local culture to better understand how the locals think, their values, what drives and motivates them. The last thing you want is the local staff to feel that this “outsider” is coming in to dictate what to do. You must eliminate those fears and negative thoughts. We are guests in this new country, region or place; so there needs to be a deep respect for how they do things. 50
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The more a GM studies and understands the local culture, the easier the “marriage” between the company culture and the local one can occur. When the company philosophy is taught – what we believe in, how we treat guests, how we operate – comparisons should be shared to show the similarities between the local culture and the company culture. Similarities should be highlighted. This is crucial to winning the local team over by showing them the bridge between what they believe in and how it aligns with what we are trying to do for our guests. Of course, there will be vast differences and challenges of adaptation. However, if the incoming person/team has positively embraced the culture, the more challenging areas are easier to manage. Taking over a hotel or business is an even more sensitive issue because additional effort must be spent on understanding what the previous work culture has been and how ours is different. Retaining the staff can be a tremendous challenge if you don’t do this. The next challenge is how to teach the leaders, brought from abroad, about the local culture and how they can be successful. Companies often miss the mark on this step and automatically assume that if a leader is successful in one area, he or she will be as successful in this new environment. Finding adaptable global leaders is not as easy as one may think. As I have worked in many countries within my tenure with the hotel brand, I have identified the phases described below: 1. The first step is the “Honeymoon Phase” – a step full of excitement, thrill, meeting new people, and seeing the new place. This step is full of motivation and openness, which usually lasts for a few months. 2. The second step is the “Reality Phase”, where you start seeing how things really are. This is where you get frustrated with that bank account which you cannot open because you do not have credit in the local country. This is also where you realize that language can be a barrier. The frustrations of this step can easily spill over into the business aspect as the same is experienced there –
Stokes, an attorney who specializes in the representation of hospitality and restaurant clients, described how embracing the local culture and community in which you visit or move will make or break you. I thought it was especially applicable to new general managers and other department managers who move to a new club culture, a new community, a new region of the country or even a new country. Put yourself in the shoes of the locals and embrace the community culture before you try to incorporate change that is lasting. you find out employees prefer to be off on weekends when you’re most busy, as they value family time. This step lasts another few months and can be the hardest for many new leaders. 3. The third step, the “Adaptation Phase”, typically, takes place after six months. This is where you truly prove whether you can make it or not. This is where you attempt to learn the local language and where you figure out how to build relationships with the local community. This is the step where you find the formula for success. This step can be very difficult if you don’t have the right mindset and stamina.
4. The fourth step, the “Immersion Stage”, usually occurs after nine months to a year. This is where full immersion is achieved. It takes stamina, adaptability and a true appreciation for the local culture and community to truly be “brilliantly indigenous.” The payoffs are huge in earning the respect of the team and building trust that will enable you to accomplish your service and success goals. We welcome and challenge you to “be brilliantly indigenous” in your current or next club management position. It takes time, patience, and understanding, but the payoffs are invaluable. BR
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Todd dufek
house committee
Todd Dufek is the president of the Locker Room Managers Association with 400 - 500 members at over 200 member clubs nationwide (www.yourlrma.com). He is the locker room manager at The Country Club at DC Ranch in Scottsdale, AZ Contact Todd at tmdufek@cox.net for information about membership in the LRMA.
How to Give Your Locker Rooms “Soul” No matter how you view your locker rooms or what condition they’re in, doesn’t it make sense to improve the experience of the members and guests that use them? Earlier I asked the question, “Are the locker rooms at your club seen as a restroom and a place to change clothes or the heart and soul of your club?“ Even if you see them as a “restroom,” it’s a good idea to elevate the amenities offered so that member visits are more enjoyable. Here we’ll offer you some suggestions that will do just that. If your locker rooms are staffed and seen as the “soul” of your club, or a place where members socialize and can truly be themselves, then employing just a few ideas will make them even better. In other words, give them more “soul.” As I’ve told the members of the Locker Room Managers Association (LRMA) many times in monthly newsletters and weekly thoughts, the primary goal of our organization is to make the visits of members to locker rooms at golf and country clubs across the nation more pleasant. That’s because serving others gives us a great deal of satisfaction.
• Provide guest lockers for golfers with a card on the outside containing their name, a photo of the signature hole on your golf course and a welcome poem • Put the following amenities inside guest lockers: Aspirin, Advil, Tylenol, lens wipe, bandages, shoe horn with club logo, toothbrush (individually packaged with toothpaste on brush), golf balls and tees with club logo, travel sizes of sunscreen, shampoo and hand lotion with club logo • Along with shoe shines, laces and spike switch outs, add shoe stretching, minor shoe repairs as well as taking shoes out for sole and heel replacement • Take out member clothing for dry cleaning • Offer more than one golf spike in nearly every fastening system • Have your club pay an annual fee so that your locker room staff can be members of an association and receive weekly/monthly tips that will add even more heart and soul to your club’s locker rooms • Add adult wipes to toilet stalls • Add a hot lather machine for those male members that shave with a blade
Make a copy of this article and use a highlighter to identify the suggestions that are doable and assign a date by which they will be completed. If you don’t have a locker room staff, carry them out yourself. If you do have a locker room manager or attendant, sit down, discuss the list and decide which ones can be accomplished, complete with deadlines. Here are some suggestions: • Replace existing generic dispensers (soaps and lotions on sinks, shampoo, body wash and conditioner in showers, etc.) with bottles that have your club’s logo • Have current shower towels embroidered with your club’s logo • Purchase bath sheets and make them at least a third of your towel inventory • Offer at least three choices and/or forms of amenities like shaving cream/gel, deodorant, sunscreen, pain relievers, bandages and tape/gauze • Replace existing shower heads with those that save water, increase water pressure, filter contaminants and give off a pleasant scent when in use 52
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• Purchase a hole punch tool so that holes can be put in belts, purse straps etc. Make a copy of this article and use a highlighter to identify the suggestions that are doable and assign a date by which they will be completed. If you don’t have a locker room staff, carry them out yourself. If you do have a locker room manager or attendant, sit down, discuss the list and decide which ones can be accomplished, complete with deadlines. If you have questions about how to execute any of them or why, use the contact information below and send me an email. BR
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dave doherTy
gReen committee
Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil basedgreens. He can be reached at (913) 706-6635 or via e-mail: daveistrc@hotmail.com Web page: www.istrc.com
How Often Should I Aerify? during the course of a year as i travel to different golf courses both in the u.s. country and other countries i am asked the same question over and over. do we really need to aerify? I explained (in the last issue, BoardRoom May/June 2017) how organic material is deposited in our root zone by the root system, and how this organic material if not managed properly can seal off our greens and cause the turf to stress because of a lack of oxygen. Organic material deposited in the root zone by the root system is the number one cause of green failure. Aerifying using hollow tine cores removes organic material and is the most widely used method to control organic levels. In years past every superintendent who has ever made the decision of how many times to aerify in a year based the decision in no small part on the amount of outrage expressed by the members and the different boards and committees they had to answer too. General managers and directors of golf were placed in a very awkward position when a member asked the questions. Do we really need to aerify? Are we aerifying too often and why does it take the holes so long to heal? Every person who has ever had to make the decision about aerifying has had to ask themselves the following questions: 1. How often should I aerify? (Not can but should) 2. How deep should I go? 3. What size tines should I use? 4. What should my spacing be between the tines? 5. Should I use hollow or solid tines? 6. Should I fill the holes or leave them open? 7. If I fill the holes what should I fill them with? Until we know the physical properties of the greens mix we cannot answer any of these questions. Once we know what we are trying to manage, the questions answer themselves. Once we know what is below the surface of our greens, we can answer our members’ questions with facts based on science and put into place programs that best suit the needs of our members and our greens. Once we know what we must deal with we can stop talking about aerification and start talking about what is really important and that is displacement. How much material do I need to remove each year to get my greens from where they are now to where they need to be. 54
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Or if they are in excellent condition how much material do I need to remove to keep them in excellent condition. The days of subjective guessing are as dead as cloth golf balls and wooden-shafted clubs. However, most golf courses still base their maintenance programs on the number of aerifications and not on displacement of material. What a tremendous waste of resources. A few years ago, a very good friend of mine – the head agronomist for over a hundred courses – asked me how much more material we removed/displaced using 1 inch hollow tines versus half-inch hollow tines versus one-quarter inch hollow tines and I couldn’t give him an answer. When I started to study the displacement amounts I was stunned to learn that we displaced the same amount of material, 3.14 percent with each of the different tine sizes. At that time most of the aerifying equipment available to us didn’t have variable spacing like we have today. When we aerified with one-quarter inch tines we were on 1.25-inch centers. When we aerified with one-half inch tines our spacing between tine holes increased to 2.5 inches and when we went to one inch tines our spacing increased to five inches spacing. The displacement for each tine stayed the same, and as a result we were no more effective with the larger one inch tines than we were with the smaller one-quarter inch tines. All the one inch tines accomplished over the quarter inch tines was to anger everyone who played golf resulting in a negative effect on our cash flow. Our original work showed that most greens needed to have a displacement of around 20 percent to keep up with the organic production of the plant and this number was later verified and published by the USGA Green Section. The amount of annual displacement that a green needs is dependent on many factors. Green type (USGA sand based or push-up), turf type (new grasses or older varieties), and quality of water are some of the more important factors determining the amount of organic that needs to be displaced on an annual basis. BR The initial version of this story was published in BoardRoom, July/August 2007.
gReen committee
Chapters Make a Big Difference recently, the Golf Course superintendents association of america Ceo rhett evans welcomed 43 chapter executives and board members from 27 affiliated chapters to its headquarters for the annual Chapter Leader/executive symposium. Optimism for the superintendent profession and the golf industry abounds in these attendees, whose dedication is shown through their impressive efforts to provide resources, education and networking that not only impact individuals, but the superintendent profession, local communities and the golf industry as whole. Their efforts also further facilitate communication regarding environmental issues, regional concerns, advocacy efforts, charitable initiatives and so much more. The symposium is a prime example of the connection between GCSAA and its chapters, but there are many other ways the shared passion for GCSAA members, the profession and the larger golf community is shown.
Look no further than attendees like Don Hearn, CGCS retired, executive director of the GCSA of New England and GCSAA president in 1987, who said: “I still have a passion for what I do. I still come here with enthusiasm for the profession, and I want to help us accomplish more and more. It’s dramatically different from when I was president and we had a small office up the street. I think every superintendent can take pride in who we are and how far we have come.” And Jennifer Bryan, executive director of the Florida GCSA for the past 10 years, who is unequivocal about her commitment. “I see my role as helping chapters succeed. It has keeps us going,” she said. “Being a chapter leader is rewarding for me.” Presentations by participants exemplified the difference these leaders are making for their chapter members. Iowa GCSA Executive Director Randy Robinson shared successes surrounding a new website, a new industry part-
Fourteen chapters have already earned best management practices grants in the last two years, and GCSAA hopes to award at least nine more in 2017. The chapters use GCSAA initiatives to make a difference at the local level. Nearly half of the chapters have benefitted from the Rounds for Research, a program of GCSAA’s Environmental Institute for Golf, and 55 chapters have expanded their media and public relations efforts with funds from GCSAA’s communications outreach grant program since 2008. Fourteen chapters have already earned best management practices grants in the last two years, and GCSAA hopes to award at least nine more in 2017. One determined person can make a significant difference, and a small group of determined people can change the course of history. A symposium highlighted discussion about their purpose for serving as a chapter executive or board member, and what it means to make a difference. If measured by the number of people whose lives are improved and by how much they are improved, the leaders of GCSAA chapters have been making a significant difference for decades, and they continually strive to find new ways to improve the lives of their members.
ner program and the completion of a much-anticipated water quality study; Joseph Haskins, director of the MidAtlantic AGCS, who discussed his chapter’s most popular event, the Mid-Atlantic chapter’s Match Play Tournament; and Adam Ikamas, CGCS and executive director of the Michigan GCSA, along with Brian Laurent, association advancement director for the Central Ohio GCSA and Miami Valley GCSA, presented ideas on member engagement, communication and social media tactics to exchange information and build community. GCSAA staff presented program updates on association initiatives and provided leadership training designed to inspire chapter executives and board members. The leaders were reminded of the value of their work and the importance of focusing on taking risks, learning from setbacks and the power of hope to shape the future. By working together, GCSAA and its 98 chapters will continue to change history through the advancement of the superintendent’s profession and the stewardship of the game’s playing fields. BR July/August 2017 | BOARDROOM
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BruCe r. WiLLiams Bruce R. Williams, CGCS is international marketing manager for Grigg Bros./Brandt and a past president of GCSAA. He can be reached at: brucewms1@hotmail.com
gReen committee
Upgrading Your Course
Helps Attract and Retain Members in the last few years we’ve seen a flurry of activity throughout the us for both architects and golf course construction companies. It may not be like the boom of the 1970s through the 90s but everyone seems to be quite busy this year. It wasn’t that long ago that we saw some architectural firms cutting back as new golf course construction dried up since 2007. As with most businesses, golf course architects had to downsize and right size their business to match the amount of work that was out there. Very few new golf courses have been built in recent years but renovation is keeping architects and contractors quite busy. eCoNomiC ChaLLeNGes
A combination of factors led to the decline of golf earlier this century, and overbuilding was likely a contributing factor along with a recession a decade ago. Disposable incomes declined and people had to make choices as to how they would spend their extra money. Lifestyle choices also contributed to this challenging scenario. Golf clubs have done what they can to survive, and those that made appropriate adjustments survived while others have closed their doors. reNovaTioN aNd resToraTioN
While there is a difference between the terms renovation and restoration, let’s consider both being an upgrade of the golf course playing surfaces. It would surely include all physical changes of the property and infrastructure. If we are to grow the game then it’s important that we make the game user friendly. The addition of forward tees and multiple tees have been great additions to many golf courses. It is a small investment that can result in more of our youth, ladies and seniors playing the game. At the same time a golf course can be lengthened to match the technological changes in golf balls and clubs allowing players to hit shots much longer than when golf courses were originally designed. Life expeCTaNCy
Most players don’t realize that some items on the golf course have a true life expectancy, and two that come to 56
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mind are golf greens and irrigation systems. Studies indicate that the average life expectancy of both is 20 years. Smart operators will budget accordingly for when the day comes that those items need replacement. Many clubs have recently decided to upgrade or replace their irrigation system, and with the cost of water rising and older systems becoming less efficient it makes a lot of sense to develop a plan to keep your system effective and efficient. Golf greens will vary in life expectancy. Remember that the grasses planted on greens 25 years ago may not meet the current standards required by golfers at private clubs today. A whole new generation of grasses for putting greens has evolved; there are a lot of options available, and demands for faster putting surfaces are easier to meet with these new grasses. The largest component added to greens is water, but all water is not created equal. Some sources of water contain high levels of sodium and bicarbonates, which can shorten the longevity of greens. The best suggestion is to use qualified agronomists along with soil and water testing to track the health of your greens. BuNkers
Bunkers are another quick way to change the look of your golf course. If your fairway bunkers are no longer in play then it would make sense to relocate them accordingly. Hiring a qualified golf course architect is important along with using an experienced golf course contractor. Many clubs have opted to remodel all of their bunkers because they can do this and keep the course in play. It provides a fresh look to the golf course without closing. Over time, bunkers tend to drain poorly. Sand becomes contaminated with clay and gravel. Simply adding sand alone does not always make a bunker better and I have seen bunkers with over two feet. of sand in them, whereas six inches would be the normal specification. While golf is a competitive sport, the business of club management is also competitive. Clubs compete for members, guests and revenue. By upgrading your golf course, it is easier to attain and retain the highest level of member for your club. BR
sTeve sCheNdeL Steve Schendel is vice president/agronomist with Golf Maintenance Solutions. He can be reached at (630) 220-5977 or via email steve.s@golfmsolutions.com
gReen committee
Mind the Gap if you have traveled to england and used the public transit system you are probably familiar with the phrase “mind the gap.” This is a recorded phrase that’s announced over the intercom as trains arrive or depart platforms. The phrase literally means “pay attention to the gap” or “watch your step.” We have found mind the gap to be fitting for the success of clubs throughout the country. Since the beginning of the company’s existence, we have helped clients search, interview, hire and train new superintendents. We found a need for golf courses to mind the gap. How many times have you found your club looking for a new superintendent? This could be for a variety of reasons, but how effective is your plan for paying attention to the gap between your superintendent’s departure and your new hire? We’ve seen a trend in helping our clients during this transition period to insure a successful new hire and more importantly to make sure the interim period is successful. Many courses have qualified and well-trained assistant superintendents who may be able to take on the interim role or who may be selected to take over the golf course maintenance operation. Other courses may have a less experienced assistant superintendent or may not have a “go to person” in the absence of the superintendent. It’s not uncommon to see properties where there is no superintendent and the club is hoping everything stays status quo as they begin looking for the next superintendent or director of grounds. This transition period presents a high level of exposure for a multi-million dollar operation that is totally dependent upon the rest of the maintenance team and “I think we are okay.” To insure the golf course maintenance operation stays on track, having a temporary / interim person in place with years of experience is important. It is important to have someone who can adapt quickly to the club’s maintenance programs and insure the club does not miss a beat between superintendents. Having someone with a network of qualified golf course superintendents to help fill this gap and transition into a new qualified superintendent is extremely beneficial. The process of hiring a new superintendent typically takes anywhere between four to eight weeks or longer, depending on seasonality of the golf course and how indepth the hiring process is. Needless to say, every day without a superintendent is critical, and depending on the supporting staff (assistant and crew), there is a lot that
needs to be “minded” during the gap. Some critical areas of golf course maintenance that need “minded” include… • Irrigation management (programming/troubleshooting/auditing) • Agronomy plan development and implementation to keep all primary playing surfaces • Cultural practices (aerification/topdressing) • Equipment maintenance • Budget maintenance (purchasing/invoicing/tracking) > Product ordering/purchasing > Invoices > Expense tracking > Payroll • Human resource management > Employee morale (keeping the crew focused and motivated) > Employee hiring > Training > Performance management > Scheduling > Managing projects taking place at the course > Member/GM communication A superintendent wears many hats and in the absence of a key person, golf course maintenance needs to remain consistent. The golf course superintendent position is extremely important to the success of a property. We’ve found that in helping numerous clubs throughout the country mind the gap, the transition to a new superintendent is seamless as the overall maintenance operation remains on track. By bridging the gap, golf courses can insure they take they time and hire the right fit for the club. As with any business, we know there are critical times when it comes to hiring and we are often rushed into making a new hire. By having an insurance policy and by minding the gap, clubs can take their time and improve the hiring process. This pays long term dividends for the club. While there are no guarantees in life, we know that by taking a little more time in hiring the right fit for the club, there will be long term success with the new superintendent and the golf maintenance operation’s sustainability. If your club finds itself in absence of a Superintendent, have a plan to mind the gap. It will insure your course maintenance practices stay focused and that course conditions will remain sustainable. BR July/August 2017 | BOARDROOM
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Corey saBaN
maRketing committee
Corey Saban is the founder of Newstation.com. A former Emmy nominated and Associated Press winning TV journalist. Saban’s company serves as a virtual newsroom for all industries looking to use short form video to engage their clientele. To learn more, text the name Corey to 31996 or email him at CSaban@Newstation.com.
Video Makes the Private Club Scene are your members in the know? embracing the mobile revolution for relevant communication?
© S h ut te rstoc k.com
“Sorry no cellphones in the club.” That’s a line we’ve heard often in the past. Today, it’s more challenging that ever to give up our phones. We’re so tethered to our technology that ComScore, which measured media use, says that three out of four of us take our smartphones to the bathroom and nearly 40 percent would give up sex before giving up their phone. So give up my phone to eat in the dining room? Ah, no thanks. We are in a mobile revolution and we are all connected, and for the first time ever more searches are happening on our hand-held devices than on the traditional desktop. Right now, 91 percent of us are never five feet from a phone or tablet. We download apps, search Google and listen to our music on the go. Yet knowing all of this and understanding our own habits, many clubs still communicate the old-fashioned way with print flyers, that often get lost, left behind or offer little engagement. Just think how many times a member has said, “I didn’t know about that.”
That’s where short form video comes in, not the long form video highlighting why a prospect should join your club, but the brief clip that can be posted to your website, shared on social media and emailed to members. It’s a powerful tool to cut through the noise. Numerous clubs throughout south Florida use highly produced, low cost, short form videos to promote events, 58
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construction projects, concerts and so much more. “This is a fantastic way to get updates to our members. We use these clips and we are seeing the results” says Jay DiPietro, long-time president and COO of Boca West Country Club, Boca Raton Fl. They post these videos on the internal TV channel, in emails, on digital displays, on Facebook, YouTube and they get forwarded by members to their peers. Just like they taught us in kindergarten, sharing is caring. Web video is a powerful tool for all generations, but here are some statistics on its effectiveness. Today 59 percent of executives would rather watch video than read text and four times as many consumers would rather watch a video about a product or event than read about it. Adding video to your email generates a 200-300 percent increase in click-through rates and just using the word video in the subject line boosts your open rate by 19 percent. YouTube is the second largest search engine (almost every Fortune 500 company has its own page, as does AARP). Cisco says by 2019, 80 percent of all web traffic will be video. Facebook videos have 135 percent greater organic reach than photo posts. There are hundreds of more stats but look no further than how web video has changed your favorite newspaper. Subscriptions are down which has led to layoffs and consolidation. However, next to almost every article in the online newspapers is a video. Newspapers have a recommended video tab and produce hundreds of videos each week allowing them to create millions of views across every demographic and attract new advertisers. Create a content strategy, figure out what messages you want members to know – whether it’s an upcoming dinner event, a facelift to your club or highlighting available real estate. Also realize that while videos shot on your phone serve a purpose, they can leave a negative perception because of poor quality, lighting and sound issues. Your members are judging you and you never get a second chance to make a first impression so do it right. Remember just like the first song on MTV was “Video killed the radio Star”, video is only growing in popularity and can help you deliver your club messages to members more effectively. BR
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miChaeL CraNdaL, CNG
insights
The letters after our author’s name Michael Crandal, CNG stand for: Certified Nice Guy. Self-certified, by the way. But, a nice guy nonetheless. Michael provides meaningful interim GM/COO services and employee development programs. He lives in the Buckhead area of Atlanta, GA. www.linkedin.com/in/michaelcrandal or (760) 464-6103.
Deconstructing the Ideal GM/COO Role Model What comprises effective private club leadership? My 35-year immersion in the industry has convinced me that these four models truly do portray a very accurate summary of all the mandatory components of successful private club leadership. And make no mistake, each is ‘member experience’ focused, and it is no mistake that this is included in every model simply because every decision/action of club leadership must realize that it makes no difference whatsoever how good something sounds, looks on paper, adheres to budget or even seems logical. The bottom line: Membership satisfaction is “mission critical.” It is the only reason people join, the only reason they will stay, the only reason they will invite others to become part of it all. Actual member experiences must be the focus to see clearly. • The GM/COO role in fiduciary responsibility: Member experience focused Zero based operating budgets: These budgets are built upon starting from a clean slate (ZERO) every financial year rather than starting from where the year before left off. The total amount of every key component of the requested budget is backed-up with measurable details and approved. It is not based only variances from the previous year.
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Capital reserve study / funding depreciation: This clearly documents anticipated necessary expenditures to fund depreciation of all existing club physical assets and empowers the leadership to proactively prioritize the difficult annual capital budget choices. Strategic plan constantly monitored for progress and relevancy: In years past, strategic plans might have been reviewed only every couple of years to keep the plan in line with long-term goals. Today, club leaders are reviewing and making ever so slight modifications every three or four months. Forward thinking club leaders are expanding from just ‘long range and specific’ to ‘short term and broader’. Master plans: golf course consistency / clubhouse aesthetics: Professionally designed master plans keep the course from becoming a mash-up layout with no continuity or “signature” of its own. The clubhouse is not allowed to become a hodge-podge of various themes and intents with no clear memorable “brand” for the entire experience. Reliable ‘executive summaries and proactive mindset: Proactively offers a succinct overview of all club operations. Ninety percent of how well any meeting goes is determined before the meeting even takes place! Thoroughly answers any/all questions before they are asked. • The GM/COO role in exemplary club operations: Member experience focused Standard operating procedures throughout: Highly personal interactions and exchanges consistently happening in every department at every opportunity throughout the entire club property! Every day. Every time. Consistency with quality. Consistency with service, consistency with pride of being part of something very special. Repeat. An undeniable palpable ‘positive energy’ prevails: The entire team is perpetually in a proactive mode. The membership knows, without a doubt that great experiences consistently happen at their club. There is a vibe going on all the time and everybody senses it. A dedicated highly qualified professional staff: Identify real talent, mentor people and monitor performance with accountability for terrific results. Leadership exhibits positive support and empowerment, not fear or micromanagement. Consistent / reliable food and beverage experiences: Food and beverage services provide the single greatest opportunity to touch the greatest number of members, and their guests, in personal ways, all of which serves to en-
hance membership retention and encourage new member sponsorship. Renowned for the best creative and over-the-top club events: The club has an earned reputation of throwing the greatest parties in town, and the compounded ripple effects of sustained initiation and dues income dwarf the cost of subsidizing ingenious execution, outstanding food, and enthusiastic service! This is “mission critical” for membership retention & recruitment as well! • The GM/COO role in membership retention & recruitment: Member experience focused The GM in this role makes sure the club remains relevant to the lives of all ages: Changing demographics and expectations are now a greater factor in how thriving clubs develop and execute long-range strategic planning, as well as even day-to-day operations. The GM is operating a club where members are proud to bring guests: To remain viable, everything possible should be done to enhance the probability of members having great confidence in inviting and entertaining their friends at the club. Represents club favorably in the local community. (Church / Chamber / Rotary /etc.) In the eyes of many, the GM/COO is the ‘face’ of the club. When the GM is away from the club, the club (its staff) remains consistent by staying involved, proactive, caring, productive, fun, and a person of character, because they are!
• Board expectations of their general manager/COO: The board seeks fiduciary responsibility and exemplary club operations with a strong focus on membership retention and recruitment and the member experience. This is the ideal general manager. The board seeks productive board meetings, meaningful, focused agendas with no surprises. There is accurate / timely data. The GM solves problems before they are ever allowed to even happen, and visualizes possibilities, and then brings everyone into the big picture. Professional guidance and leadership: Effective boards are on top of things simply because their management team is. As a working partner with the board, the GM/COO attends all meetings in their entirety and presents a comprehensive opening report (executive summary) near the top of every agenda. Personal character and integrity: The people who make a difference are not those with the most credentials, money, or awards. They are the ones that care and exhibit character. Remember: DWYPYWO. (Do what you promised you would do.) Membership confidence and support: The focus of club leadership is not all about numbers and process so much as it is about trusted relationships and people. People could care less about how much you know until they know how much you care. BR
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Phil Newman
RECOGNIZED WITH BOARDROOM AWARD OF DEDICATION 2016 By Henry DeLozier What is it that makes some people committed to serving others’ needs?
For Philip Newman, the winner of BoardRoom’s Award of Dedication, it is as simple as lending a hand to people who deserve his support. “I think when you meet a group of people that by and large have charged themselves to make members happy by creating life experiences and memories for them and their families to treasure, it’s hard not to try and help them succeed.” And maybe it’s just the Irish in him. A native of Northern Ireland, Phil emphasizes his commitment to club managers at the professional and personal level. He cites his dedication to club managers in the dedication they share with one another. “I worked on audits of many different types of companies in a wide variety of industries early in my career,” Phil explained. “When I got to work with private clubs, I quickly realized how many different businesses, and business disciplines, were under one roof, and yet here was one lady or guy, charged with handling it all. “Their willingness to help each other out, share information and best practices was a beacon for me and so different to the closed shops I’d encountered with other industries. Anything I could do to help these managers out, I tried to do, and still try.” Then, again, there is that Irish determination at work as well. “Phil always challenges the status quo by using his commonsense approach, and is willing to discuss the tough subjects such as governance in the club environment,” says Jim Butler, general manager at Grey Oaks Country Club in Naples, Florida. “Phil has been an advocate for financial education in our industry, and has devoted a tremendous amount of time to the improvement of management and board leadership. Phil has made me a more effective club manager because of his active participation.” The lessons Phil has so steadfastly taught club managers come down to a handful of important guides for every club manager: 1. Understanding the power of data for making decisions 2. Recognizing the value and insight of effective club accountants and CFOs 3. Educating your board and staff in a proactive and consistent manner 4. Keeping aware of internal controls to minimize the risks of fraudulent activities, and 5. Applying standards of best management practices consistently. 62
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Bobby Crifasi, the general manager at New Orleans Country Club, notes “Phil has pretty much seen it all – the material he covers in his education sessions is hands-on and spoton. There is probably not much in the accounting and auditing world of clubs and non-profits that he has not seen.” Noting Phil’s mastery of fraud, internal controls and Form 990 reporting, Crifasi added “both not too exciting subjects but ones he has an ability to outline and assist every club manager in strengthening their understanding and the importance of each.” Board education and training have proven extremely useful to Jeff Hartigan, general manager at The Oaks Club in Osprey, Florida. “Never stop educating your board and proactively provide board members with industry publications and resources and attend seminars together when possible. We all have areas to improve upon,” Hartigan learned. Hartigan observes that it was Philip Newman who taught him to “constantly benchmark your club’s financial performance and share that information with your board and then create measurable KPIs, which are tied to bonuses for you and your management staff to improve on lower ranked areas.” Newman says it differently. “You must find someone that you trust to help you with the financial side of the club business. Whether that’s your controller, the CPA you use, or another manager with a strong financial background – you must have that firepower in your corner these days. “The Great Recession high-
lighted that need and it isn’t going to dissipate – it’s only going to get greater. We can’t preach about running a club like a business if we don’t understand the language of business,” Newman intoned. “It took me a few years, but I realized that I had to find a way to help managers understand the real-world impacts on their jobs of changes in the financial landscape. I try to remove the veil of fear or misunderstanding that can sometimes hover over the financial management side of club management and show managers how financial reports, tools and understanding can be their friend and often the most powerful tool they have in a boardroom.” The many club managers who are his friends and clients say it more simply when they say, “He helps me be my best.” So, the Award of Dedication is a sum of caring for others, helping them to learn and grow, and knowing your business. That is why Philip Newman is the recipient of such a significant award from BoardRoom magazine. BR
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GordoN WeLCh
executive committee
Gordon Welch is the president of the Association of Private Club Directors (APCD), the only association representing the club’s board. He can be reached at gordon@apcd.com or by calling (949) 376-8889.
Ensure That Your Board Members Know Their Roles and Responsibilities half of your calendar year is behind you. how’s it going? are things falling into place with your new board members? how’s your executive staff?
Now is a critical time for your club. Is your senior staff getting what they need from you? Are your new board members receiving the education they need? Most clubs are gearing up for the heat. Staff is just now settling into a grove with new committees and leadership, and hopefully your staff knows what their operating parameters are. Most seasoned general managers/chief operating officers are intuitive enough to know if the budget is “a bible” or “a guideline” but some are still unsure. Likewise, many new board members are still getting a grasp on their role within the club. At this time of year your senior staff is busy serving the membership and providing memorable rounds of golf, family outings and fabulous weddings. Staff members are also beginning to look at the strategic movement in the club and planning next year’s budgets. It is a big job for them to complete.
Secondly, the board assures the staff have appropriate resources. Do you have ample staff, planners and trainers to keep staff trained and motivated through the summer? Do they have what they need to do their jobs? That is a key ingredient: does your staff have what they need to run the club, provide optimal golf, sport and recreational activities and attract new members? Third, the board provides oversight. This is not micromanagement; it is oversight. The board’s role is to work with staff to assure the club’s exposure to risk is minimized; financials are healthy, and measuring progress on the club’s strategic plan and a healthy self-evaluation of the board should be considered. If your board pays attention to outcomes and member satisfaction and directing change to occur when unsatisfied with progress, they are engaged in oversight. Oversight is a tool of leadership, and leadership is the role of the board. However, if board members are paying attention to the details of what is being done and how it is getting done, they are engaged in supervision. Supervision
The board provides oversight. This is not micromanagement; it is oversight. The board’s role is to work with staff to assure the club’s exposure to risk is minimized This is also a difficult time of year for new board members. Some members see new board members as “fair game” and will take their leisure time to inform them of “what’s wrong” at the club. The season is busy and more members are active and there is more opportunity to make mistakes. Summer is also a good time to have a retreat for your board to explain more about the flow of the operation, what to expect and how to handle legitimate complaints and complainers. Take time as your organization’s leadership to make sure roles and duties are defined. The boards role is three-tiered. First, a board role is to approve organizational direction. Elements of this role include engaging in strategic thinking and planning with staff; moving the mission and vision forward and approving strategic, operational and annual plans. 64
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is a tool of management. Any board member acting in a management capacity will put your club at risk. As a leader in your club this is a crucial time of the year. I highly recommend taking some time out of your day and checking in with your GM/COO and senior staff. The effort you make today will pay off as the year progresses. If you are the president of the club I hope you are not “coasting” as some do. Sure, it is your sixth or seventh year on the board and you are ready to “move-on” and enjoy your club. Maybe you want to experience just one round of golf without someone complaining to you about some petty thing. It’s a marathon and you are on the last hill. Keep going and cheer on those around you. Don’t fall behind, push forward for your club so you can enjoy it for years to come. BR
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riCk LadeNdorf
wellness committee
Rick Ladendorf is the president of Prevo Health Solutions, a wellness solutions provider, executive producer of the AMERICA’S HEALTHIEST CLUB© wellness rating program and founder of the Wellness Project. Contact Rick Ladendorf at (949) 933-5470 or rladendorf@prevohealth.com
At Look at the Future for Wellness The $3.7 trillion spa and wellness industry is going mainstream in the private club industry. and the focus is on rehabilitation and rejuvenation. Each month I visit a handful of clubs and have observed a few things that cause me to say, hmmmm. The expLoraBLes aNd The forGoTTeN
First, high-end luxury resorts and high-end private club amenities and services are beginning to look a lot like one another. But there’s a major difference. Private clubs collect dues from a finite number of members, whereas the high-end luxury brands derive revenues from an infinite number of customers. Both however, understand the importance of providing an exceptional experience that creates loyalty and generates repeat business. High-end private clubs, which I refer to as “Explorables”, are the clubs that are most often visited by general managers and board members when they are embarking on a capital improvement project. Secondly, many of the middle and lower tier clubs experience financial pressures because their dues and fee based services are not sufficient to pay for the necessary capital improvements to stay relevant with the changing demographics in the communities they serve. These are the “Forgotten Clubs”… clubs that need to find ways to attract and retain members. Unfortunately most do not have fitness centers, or dedicated communications and marketing professionals on staff, nor do they have the budget to implement many of the programs of their bigbrother “Explorable” clubs. Third, the “Forgotten Clubs” or what I like to call, the underdogs, aspire to be more like the “Explorables” and typically staff or board members visit myriad top-tier private clubs before they embark on any significant capital improvements. But let’s face it, most of the underdogs will never be an “Explorable” i.e. Ocean Reef, Union League or a Frenchman’s Creek, no matter how hard they try. Matthew Allnatt, GM and COO of Los Angeles’ Jonathan Club a mentor and friend, has been slowly executing his vision that offers a member experience that “rehabilitates and rejuvenates.” His vision attracted my attention and I feel compelled to share this vision with the private club industry because many of the Jonathan Club’s elements can be implemented across the country without spending a lot of money. 66
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Allnatt is not alone in his vision, and is an inspiration to many of his peers in the private club industry. Launching the first Wellness Academy for Private Clubs General manager Allnatt is one of 13 founders of the Wellness Project™, an initiative with a vision to expose club industry “leaders” to innovative ways in which wellness-related programming, processes and promotions can improve recruitment, retention and usage, enhance the member experience and connect the club with the community. Jonathan Club and the America’s Healthiest Clubs have joined forces to offer the first-ever Wellness Academy™, where industry leaders and managers can experience what a private club spa-wellness retreat “feels” like so they can return to their clubs with actionable ideas that can be implemented easily and affordably, thereby providing their members a similar interactive wellness member experience. Joanna Roche, who has 25 years of experience in spa and hospitality and private club industries explains, “A wellness center is a facility devoted to the promotion of healthy living, as well as the prevention of illness and disease. “These practices can include traditional forms of medicine and healing as well as ancient healing arts and modern, cutting edge, forms of healing. Wellness is not a trend, it’s a lifestyle and a paradigm shift has been occurring in health care over the past 25 years.” Joanna will participate as one of the inspirational speakers at the launch of the Wellness Academy. Industry leaders representing BoardRoom’s Distinguished Clubs, America’s Healthiest Clubs and the Wellness Project™ founders, will attend the kick-off spa and wellness retreat scheduled to take place at the Jonathan Club September 21-24, 2017. For more information, or to make your reservations, contact the Jonathan Club. spa aNd WeLLNess TreNds
The 2017 Wellness Trends, from Global Wellness Summit lists the 8 Wellness Trends for 2017 – and Beyond. While many of these trends may sound a bit esoteric and outside the scope of what the typical private club offers, there is a lot that can be incorporated into many clubs nationwide. Many of these trends will be addressed or included in the Wellness Academy™. 1. Sauna reinvented. From theatrical Sauna Aufguss events to jaw-dropping amphitheater saunas…sweating will get more spectacular and social in years ahead
2. Wellness architecture. Healthy-forhumans building…Finally 3. Silence. From silent spas - to wellness monasteries and “down-time abbeys” - to silent eating. 4. Art and creativity take center stage. Yes, adult coloring books - but well beyond, from classical concerts to intensive painting classes at hotels, wellness retreats, spas and studios 5. Wellness remakes beauty. Borders between beauty and wellness blur: the $999 billion beauty sector gets a shakeup thanks to seismic shifts in the way we aspire to and perceive true beauty. 6. The future is mental wellness. This will be the biggest future trend, period: from wellness destinations and spas bringing in neuroscientists and psychotherapists – to meditation becoming seriously mainstream, while evolving into new breeds –to part-mind, part-body workout brands – to apps that track your mental state. 7. Embracing the C-word. Wellness industry stops turning away cancer sufferers and, instead, provides comfort, solace and positive recovery paths. 8. Beyond the elite “ghettos” of wellness. In a world where rising inequality and a sense of “unfairness” is leading to a global, populist backlash – a wellness industry that’s become narrowly associated with wealthy elites (…the $300 yoga pants and treatments) must, and will, change. shapiNG The fuTure
Architects, builders, consultants and fitness equipment manufacturers businesses are booming and they owe much of their recent success to the demand from private clubs (and their arch-rival, the resorts and high-end daily fee courses) that have board support to build or remodel fitness and wellness centers. For example, Technogym, the leading producer of design and technology-driven wellness and fitness equipment, with over $600 million in annual sales, is known as the “wellness company” and is rapidly building market share in the United States with its innovative products and services. see WeLLNess CommiTTee | 92 July/August 2017 | BOARDROOM
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addisoN CraiG
memBeRship committee
Addison Craig, a Millennial, is the owner of ADDGOLF LLC, a golf instruction business. Addison works as a golf instructor at the Jim McLean Golf School at Trump National Doral, Miami, FL and works as a golf professional at The Bridge Golf Club at Bridgehampton, NY. He can be reached via email: addison.c.craig@gmail.com
Why Play Golf? – Marketing to the Next Gen Golf is a great teacher.
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Especially for juniors, learning to play golf has advantages that aren’t limited to the sport. It teaches patience, discipline, respect, and persistence, and helps develop leadership qualities, and more. My parents always encouraged me to participate in sports. My middle school promoted sports and offered a wide variety of programs, and being taller and bigger than many of the other students, I leaned towards football and was encouraged by the coach to join the team. However, my grandfather bought me a new set of golf clubs and encouraged me to play golf more since it was a lifetime sport and it would useful in business when I became an adult. The sports schedule offered golf and football at the same time so I had to choose which sport to pursue. At the time, there was no one at school encouraging me to play golf and only a handful of students were thinking about even playing the game. With lots of encouragement from my family and golf friends, I decided to play the game I’ve learned to love - golf. I decided to play golf over football. It wasn’t easy at first, but I know this was one of the best decisions in my entire life.
Golf is one of the greatest teachers of life skills. It teaches you discipline, the importance of settling goals and developing plans to reach those goals. Golf also teaches you about important leadership qualities – honesty and emotional intelligence. As a PGA Golf Professional and a U.S. Kids Certified Coach, I’m able to connect with many families and pass on 68
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lessons I’ve learned, to a new generation of players and their families. This experience also has given me a good view of the problem clubs have attracting young players. I’m a Millennial and I find that many of my peers and younger people don’t always think about the impact that golf has on their lives and what it could do for them and their families. Clubs need to recognize that my age group and the one following mine – Generation Z those born in 1995 and later – are worth paying attention to. Generation Z is 26 percent of the U.S. population and already contributes $44 million to the economy. Yet, the number of younger people playing golf is dropping. If you want to attract this population, you must pay attention to them and be deliberate about promoting the many benefits of the game. Not only is golf a great way to create lasting memories with family members, here are four life skills that clubs should market: 1. Golf teaches healthy habits and includes spending time outdoors walking nearly five miles on a typical course. Unlike some sports, it is a lifetime sport and is less prone to injury than other sports. 2. Golf builds your ability to get along with people from all walks of life, ages, backgrounds and abilities. You meet the best people while playing golf and I have personally built long-term friendships because of the game. 3. Golf is a very respectable sport. When I think about the times I’ve played or watched golf, I do believe that the game shows us the importance of sportsmanship. 4. Golf teaches you how to focus and strengthens your mental game. As a Millennial, I’ve grown up with technology and lots of distractions. Golf requires you to be focused so that you can block out noise and any distractions that would impact your game. Like life in general, there are lots of distractions, however, the people who succeed stay focused on their goals and don’t let distractions sidelined them. I think the late Arnold Palmer said it best: “Success in golf depends less on strength of body than upon strength of mind and character.” For clubs seeking to grow and prosper, the bottom line is this: When kids have fun playing at an early age, they’re more likely to play for a lifetime. BR
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RICK COFFEY Rick Coffey is a product specialist with Clubessential. He can be reached via email: rcoffey@clubessential.com
MEMBERSHIP committee
The ABCs of Member Data Mining It’s no secret: Members are the lifeblood of our clubs. But how much do you know about your members beyond their names, contact information and member numbers? Recently I’ve seen a dramatic increase in clubs determining they need to know more about their members through a process called “member data mining.” Here are my ABCs of member data mining: A: Ask your members for their preferences. Whether it is dining, golf, communications or any other type of preferences, the more your staff knows, the better. B: Be proactive. Launch a communications plan that is consistent so that your members start to expect to hear about the club – and better yet, use member reservation data to trigger automated confirmation and reminder emails. C: Communicate in an efficient manner. Think to yourself: What’s the necessary information each email needs to contain to reach the right members, at the right time, as efficiently as possible. D: Deliver on the data collect. Your members will notice and stop giving you the information if you don’t use it, and if you send irrelevant information. E: Every member matters. Across the country, secondary members often feel slighted compared to the golf members, so make sure when you are collecting data to put as much effort into those categories as well. F: Focus in on preferences. Learn what your members like all across the departments at the club, so that your staff can take advantage of this information to create memorable experiences. G: Get the team together. The goal is to not only learn about the members, but more importantly to take that data and turn it into better member experiences in all departments. Managers need to be on the same page regarding what member information is relevant to their staff. H: Have fun with it. The possibilities are limitless when your team is engaged and excited about using the data to deliver highly personalized member service. I: Interaction is the key. Set member expectations so that they know why you are interested in learning more about them. The more value members derive from data-driven communications that cater to their preferences, the more they will interact. J: Jump in slowly. Take it step-by-step so that you maximize the power of each area of data you are compiling. Do 70
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a survey or an email once a month, or once a quarter, and deliver on your findings before moving on. K: Kids’ data is powerful. In fact, it’s often more valuable than the data you have on the parents – just ask any parent and they will tell you that their family is priority number one. Do you know the kids’ names and birthdates and interests? L: Leverage your technology. Direct your members to online form questionnaires where they can easily answer the questions, and you can capture their answers in digital format. M: Monitor the open rates. If you do use forms, look at how many members are opening the emails and clicking on the link to the forms. That metric will provide you with some valuable insights. N: Never give up. The future of the club industry is going to continue to move in this data-driven direction. As Millennials continue to become more prevalent at clubs, you will be required to do this, so get ahead of the curve. O: Openly ask for feedback. As you start the process of data mining, personally call some of the members and get their opinions on what they liked and didn’t like. P: Properly keep track of the data. Whether you are using an Excel file or a CRM product, make sure your efforts are not hindered by bad organization. Q: Keep your questions short. Questions should be kept short and easy to answer. Doing so will increase the number of completions you see. R: Reports are powerful. Being able to see visually what the membership is telling, based on data, is extremely beneficial. S: Show the benefits early on. Share with your members what you’ve learned from data mining, early in the process, so that they get excited. Make it go viral through great delivery. T: Treasure the data and put it to work. This member data is gold. Treat it like such, and put it to work for your club. Data mining can greatly enhance member experiences and reduce attrition when done well! U: Understand the “why.” It’s more important to understand why you’re doing this in the first place than how you are doing it: To drive a better member experience and streamline your club operations. The end result is so worth the effort. V: Validation will come. When you see your manager’s jaw drop as they look at the astounding open rates resulting from these data-driven emails, you’ll feel validated. SEE MEMBERSHIP MARKETING | 92
LEGAL COMMITTEE BY ROB HARRIS
An Outing with Grandpa In Pfenning v. Lineman, a 16-year-old girl accompanied her grandfather to a golf outing, where she proceeded to drive the beverage cart. The grandfather, accompanying her at the outset, bailed out shortly thereafter to join a shorthanded group of golfers. He left her in the custody of his sister, but she, too, opted to play golf, and the girl thereafter was left with an employee. Sure enough, the girl got clobbered in the mouth by a hooked drive. The ensuing lawsuit was brought against the golfer, the club, the sponsor of the outing and her grandfather. The Indiana Supreme Court upheld summary judgment in favor of the golfer and the club, citing the inherent risks of the game, but denied summary judgment for the sponsor of the outing and for the grandfather. According to the court, there were issues of fact concerning the presence or absence of a windshield and roof on the
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The Indiana Supreme Court recently issued a decision, which tees up the surviving claims for settlement or trial.
cart, and exposing the girl to risks when she was unfamiliar with the sport. Upshot: golfers can swing with impunity, but those inviting non-playing guests may be responsible for their safety.
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MICHAEL GREGORY
BENNETT DELOZIER
MEMBERSHIP committee
Millennials Represent Opportunities - Part I In the first of a two-part series, Michael Gregory and Bennett DeLozier of Global Golf Advisors offer insights to a recent survey of Millennial golfers conducted by GGA and Nextgengolf. In the spirit of full disclosure, we want to admit something right upfront: we’re Millennials. We’re among approximately 80 million people born between 1980 and 2000, give or take a year or two on either side, depending on shifting demographic boundaries. We’re also known as Generation Y, Generation WE and the Boomerang Generation. In a cover story, Time magazine called us the Me Me Me Generation. We’ve been stuck with other labels too – lazy, entitled and narcissistic. (Ouch!) We prefer to think of ourselves as open-minded, creative, go-getters, upbeat and passionate about social and environmental causes we consider important. We’re multitasking pros, but we’re easily distracted. We’re comfortable in front of a screen – any screen – and social media (Facebook, Twitter and Instagram) are how we communicate and get most of our information. But here’s the question relevant to your interests: Are we part of the answer to private clubs’ membership challenge? Or are we a continuation of the problem? We know the question is on the minds of a lot of club boards, GMs and membership directors. That’s because there are about 6.4 million Millennial golfers, according to the National Golf Foundation. That’s more than any golf cohort other than 6.8 million Gen Xers, whose birth years span the early-to-mid 1960s and the late 1970s to early 1980s. (By contrast there are 5.4 million baby boomers, once thought to be golf’s saviors, but now on the back nine of their golfing careers.) So we represent an awful lot of membership prospects. But how many of us will eventually join a club, and what would it take to convince us to do that? To learn more about our golfing peers, Global Golf Advisors, teamed up with Nextgengolf, a golf event planning company, to survey Millennial golfers across the U.S. with the focus on avid golfers because they are the primary target audience for private clubs. The average age of the 1,033 golfers who completed our survey is 24.3; they play an average of 31.4 rounds a year and carry a 9.2 handicap index. They’ve been playing an average of 11 years, and because the Nextgengolf database skews heavily toward males, so does this survey. 72
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Among our findings: • The better the golfer, the more likely he is to join a private club. Sixty-five percent of Millennials with a zero or lower handicap play most of their golf at a private or semiprivate course. By contrast, only five percent of Millennials with a handicap of 28 or more play mostly at private or semi-private courses. What’s more, Millennials with a seven handicap or lower are willing to pay 25 percent higher annual dues to belong to a private club than the average Millennial respondent in the study. • Younger Millennials like the idea of club membership, but a private club becomes less of a priority as they age. Fifty-five percent of Millennials 18 to 25 said they would consider joining a private club in the next three to 10 years. But when Millennials 26 to 40 were asked if they would consider club membership in the next five years, just 47 percent said they would. Our interpretation of this drop-in interest is that competing priorities, including family, career and home ownership, get in the way as Millennials age. • The most important factor that influences a membership decision is a recommendation. Eighty- three percent of survey respondents said encouragement from a friend, colleague or family member might cause them to join a club. The second most influential factor (64 percent) was a positive experience while attending a tournament or special event at the club. • Millennials like options and flexibility, and that characteristic was borne out in the portion of the survey that focused on entrance fees and dues. Fifty-one percent said that lower annual dues combined with a pay- as-you-play option were an appealing form of membership. Forty-eight percent liked the idea of a discounted entrance fee paid up front. Forty-seven percent liked the option of a trial membership, which removes some of the perceived risk in long-term membership commitment, and 26 percent thought an entrance fee amortized over two to three years made sense. • Forty-one percent of Millennials would prefer to pay more annually than pay an entrance fee to join a private club. Of those who would pay a fee, the highest amount they would pay is $6,500. • Golf alone is not enough to get most Millennials to join a private club. Millennials are social animals – many are involved in as many as 10 recreational activities. The research SEE GREGORY/DELOZIER | 92
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PHILLIP MARTIN Phillip Martin is vice president, operations, Troon Privé and can be reached at PMartin@Troon.com
MEMBERSHIP committee
Marketing + Sales = An Equation for Success The pressure to grow membership numbers continues to be one of the most critical goals for private clubs around the country. For most, it will be yet another year of losing members at a rate that outpaces new member sales – putting stress on the club team, demoralizing the remaining members, and accumulating names on the club’s resignation/resale list. Unfortunately, the solution usually shows up as a priceslashing incentive, offered at the expense of the club’s revenue stream (or whatever happens to be left of it), without any consideration for strategy, or new/untested programming that is disconnected from the club’s culture or vision, yet meant to drive member referrals. Savvy private club operators have a different approach – one that involves supporting sales activities with a strategic and targeted marketing program, among other things. So, unless the approach is changed, the outcome never will. Marketing should be developed as a strategic program that 1) drives leads to the club. Then, 2) the leads should be cultivated by the sales team, at which time, 3) qualified prospects can be converted into happy members. When it’s written out, it’s easy to see that the quantity of sales (step three) is directly related to the number of leads that come into the club (step one). Although covering every detail of a comprehensive marketing and sales plan here is not feasible, defining these three steps helps to set the stage for success. 1. Drive leads from a variety of sources – A mix of tactics that work together to drive leads to the club will produce the best results. Examples include SEO/SEM efforts, member referrals, data capture on golf outing and events participants, website inquiries, realtors, and more. Targeted efforts geared toward each of these sources will produce even more leads, and results can be measured to help with plans and budgets for the following season. 2. Cultivate – Leads have no chance of becoming qualified prospects unless someone at the club is doing something with them! As leads come in, follow up should occur immediately or within 24 hours. 74
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True sales professionals rely on competent CRM software or online service to track leads, but a well-tended spreadsheet can also work. After the initial contact the leads should be immediately labeled as A (purchasing in next 30 days), B (likely to purchase in next 60-90 days), C (likely to purchase, timing unclear), or X (have not expressed a desire to purchase, but have not declined efforts to stay in touch). Using the CRM tool of choice, the sales staff will be reminded of when the next scheduled follow up should occur. Although the pipeline should be monitored daily by the sales team, reporting on leads, prospects, sales, resignations, upgrades, downgrades, marketing results, and actuals versus budget should be sent to the general manager weekly, and rolled up monthly for the board and membership committee. These reports not only provide important data points to management on marketing and sales results, but also a better grasp of the salesperson’s abilities and expertise. 3. Converting prospects to happy members – It’s critical to have an experiential program mapped out to match the prospect tracking through the CRM tool. The touches each level of prospect receives should be engaging, compelling, and appropriate for their level. For example, an A prospect may receive a round of golf and lunch on the club, where an X prospect may only receive a semi-annual direct mail postcard. Dedication to the process is essential and the amount of information that is gathered and analyzed is key in guiding the future development of marketing and sales activities for the club. Rather than incentives and one-off promotions, a club can tip the scales in the other direction with a simple equation for success. A comprehensive and targeted marketing campaign combined with a proactive sales approach is the formula that yields more sales, better predictability, and a membership more connected to their club. BR
TED ROBINSON Ted Robinson is a partner with Private Club Associates and can be reached at (478) 741 7996 or via email: tcr@privateclubassociates.com
MEMBERSHIP committee
A Club’s Culture - It Must Be Nurtured “I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.” – Louis Gerstner, IBM How do you build a club´s culture? That’s a most interesting question we received from a client developing a new high end “towne” club in a vibrant central American city: What a great question – appropriate not only for a new club – but for existing clubs as well. Culture is described by the vision, created by accomplishing the mission and perpetuated by maintaining the club’s core values. It is what keeps members and attracts new members – what drives “word of mouth” exposure. It can be described by words or combinations of words such as friendly, old line, innovative, established, personally attentive, high quality, consistently excellent, comfortable, caring and many more. The first step is assuring an effective vision statement– one of the components of PCA’s first key to success – “Do you know who you are?” The vision (along with the mis-
achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.” This statement energized our country. There was no doubt in anyone’s mind as to where we were going and what constituted success. After the vision and mission statements are created or updated, you must develop (or revise) the club’s “operating principles” which include the core values, standards of quality (SOQ); the standards of operation and performance (SOP); and the club rules and make certain all are stringently enforced all of the time. These club policies, the values, SOP, SOQ and rules support the expectations as defined in the vision. Assuring the club’s culture remains or becomes relevant includes maintaining or creating club traditions and ceremonies, keeping the vision in front at all times, and assuring the buy in of all stakeholders including members, owners, directors, suppliers, and the community at large. Someone has to constantly monitor that the “culture” is being nurtured by maintaining the high quality of facilities, service, products, programs, and value.
If a brand change is necessary to keep the club relevant because of the changing world of private clubs, the board must assure that those components of the culture that remain relevant are supported. sion and brand position statements) tells the story of your club, where it is going and what it will be when everything is completed. Unless you “know who you are”, it is very difficult, if not impossible, to achieve your full potential for attracting new members. The club’s culture is defined by its vision statement and perptuated by successfully completing the mission. Hence, the vision is a mental image of the successful accomplishment of the mission and thus the purpose of the organization. It outlines what an organization wants to be, concentrates on the future and is a source of inspiration. It defines the end state – the ultimate goal. The best example we know came from President John F. Kennedy: “I believe that this nation should commit itself to
You maintain the culture by not deviating from the vision, and by not making decisions contrary to the club’s culture. How important is this to an operating club? A new GM and new board members must understand the culture, how it came to be and what sustains it. Any degradation in the respected and accepted culture results in lower admission and greater attrition rates. If a brand change is necessary to keep the club relevant because of the changing world of private clubs (changes occurring at an accelerating rate, including the diminishing demand for golf, increasing need for attention to families, and expanding non-club competition for time and discretionary income), the board must assure that those components of the culture that remain relevant are supported. BR
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ROSIE SLOCUM
MEMBERSHIP committee
Rosie Slocum, MCMP, director of membership, BallenIsles Country Club, Palm Beach gardens Florida. She can be reached at (561) 627-3372 or via email:rslocum@ballenisles.com
Surveying the Past, Engineering the Present And Planning the Future
“Progress lies not in enhancing what is, but in advancing toward what will be” . . . Khalil Gibran Those almighty words, “club renovation” are like music to your ears when comprehending the offering of updated facilities to your club members. Going through the process is another story and for some may seem like the screech you hear when fingernails run down a chalkboard! Eeeek! Whether the club is an historic landmark requiring a complete updated infrastructure or an overall gut to modernize the facilities, all the standard questions initially must be contemplated. What is being done? Who is spearheading the project? How much will it cost? How is it being funded? Who’s being hired to help? How does closing affect the operations? Are there arrangements for reciprocal facilities? How long does it take? One question that should be a top priority is this: How the club will market itself to new prospects during a renovation? Some may think new membership opportunities will diminish during the construction period. Statistics show that it’s far from true if planning is done in advance. Capitalizing on what will be with a strategic blueprint showcasing improvements, in a proactive approach that deals with perceived negative impact, is something to note. Sales and marketing goals and objectives should be done in conjunction with a construction budget. Funding allocated for a marketing plan will pay for itself when new memberships are recognized because of construction marketing efforts. If the club is selling memberships during the construction phase, positive rate of investment is realized and success is achieved. If you don’t get the word out how will anyone be aware of it? Do you think it’s important that every effort is made to share this exciting news that will enhance the lifestyle of new and existing members? It will become the greatest selling tool you have to use during construction. Taking advantage of a marketing opportunity will increase the possibilities of adding membership revenue to the bottom line, which is a source of capital funding. There are key elements to any marketing methodology that include segmentation, targeting, positioning, promo76
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tional tactics, monitoring and evaluating. What is included in the approach and how it will be used is fundamental. In a construction marketing plan the checklist should contain a number of concepts within budget. A groundbreaking ceremony including key players is important to kick-off the project. Along with club officials, consider inviting community political figures such as the mayor or city councilors, with the media there to tell the story. Your club’s use of a public relations firm assists in getting the media to attend newsworthy events. If you’re not using a PR firm, consider using one. Video footage can be used on social media, a dedicated page on the public side of the website and community channel, if one is available. Similarly, a ribbon-cutting ceremony should be incorporated into the event. There needs to be myriad strategies to bring maximum exposure to the program. A well thought out printed collateral package should include a construction brochure and any other reprinted editorials or advertorials about the program along with the regular prospect package materials. If the club has an interactive construction video it should be reproduced to hand out, posted on the public website, digital signage, tied to all social media and online media landing pages. Consider prospect tours conducted outside the perimeter of the construction zone where you can share the program process and progress. Get creative and make it fun! Ongoing, a series of construction video vignettes can be created for the public website and digital signage. They can be produced on a mobile device or by a hired videographer. Follow-up with a note to prospects by sending them a link to construction updates so that they remain engaged and excited about joining your club. The surveying, engineering and planning put into your project will secure a futuristic position. It’s an investment that will sustain your club in the future and keep you up with the “Joneses!” “If you invest nothing, the reward is little.” - - - Richelle E. Goodrich BR
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HEATHER ARIAS DE CORDOBA
INNOVATIVE IDEAS
Heather Arias de Cordoba is the associate editor of BoardRoom magazine. If you have an innovative idea or a story suggestion, please send Heather an email to: heather@boardroommag.com or call (949) 365-6966.
Training Kitchen Provides New Pool of Hospitality Employees The tablecloth was immaculate. The glass was set on the correct side of the plate. The forks were in perfect order. Jeff Aiken had set a table fit for a banquet. But he did much more than set a table. He set himself up for new and exciting opportunities as part of the first-ever graduating class of the LifePath Culinary and Kitchen Arts program. Earlier this year, Aiken and seven other Little City participant trainees graduated from the 10-session, training program, delivered by staff from Twin Orchard Country Club of Long Grove, Illinois provided both the education and opportunities for skill acquisition necessary for the participants to actively pursue jobs in the food service industry. Sessions included topics such as kitchen safety, hygiene, table setting and even food
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prep. Whether it was nuanced details like learning to hold the glass by the stem or bigger tasks like learning to apply breading for fried chicken, Aiken said it was a valuable experience. “I really liked the guys who taught the classes,” he said. “They taught us things we need to know to work in a restaurant.” This pilot training program served as the “next step” in an ongoing partnership between Little City and the Greater Chicago Club Managers Association (GCCMA). It highlighted the unique job requirements of not only the private club industry but food service employment in general. It provided learners with direct, one-on-one training and education from experts such as Twin Orchard’s general manager Gavin Speirs and food and beverage director Ben Janssen. The majority of the training took place in Little City’s fully-equipped hospitality training kitchen and dining room, a facility built with a generous grant from the GCCMA. The final session took place in Twin Orchard’s kitchen facilities, giving participants real-world experience in a live setting including prepping cocktail sausages and breaded chicken alongside professional cooks. “The combination of a transformational environment such as the kitchen along with the expertise of the trainers, hands-on learning experiences and course materials adapted for the learning styles of the trainees, culminated in a truly rewarding experience that has resulted in immediate benefits and which will ultimately pay future dividends,” said Casey Burke, Little City’s director of employment and day services. Each participant received written learning material and a certificate of completion. These graduates will now be given access to a member of Little City’s employment first team to discuss how to put the newly obtained knowledge and talent to work and pursue employment opportunities. “Our association members are thrilled to offer both financial and tangible support for this worthy endeavor to provide developmentally disabled individuals the necessary skills for employment,” explained Mike Drury, President of GCCMA. BR
JASON HAZLEY Jason Hazley is head tennis professional at the New Orleans lawn Tennis Club. He can be reached at: jasonh@noltc.com.
TENNIS committee
Lasting Impressions - Part II The first impression starts with an upbeat, positive communication expressing a genuine interest in the new customer, and attention to the newcomer’s needs demonstrates the teaching pro’s commitment. The atmosphere of the newcomer’s lessons is also affected by the communication. Personal opinions about polarizing topics like politics or religion can cause friction, as will negative remarks about the client’s past coach, if there has been one. If the pro discovers the student has received past instruction that is less than sound, tennis pros should bite their lips and keep opinions to themselves. Negative comments about past instructors diminish any positive experience, especially if the client may have considered the individual a close friend. If there is ever a doubt whether to discuss something or not, a silent is the safest approach. If the customer desires a lesson focused on improving their technical skills, the first few minutes the teaching pro should watch and listen more than they speak. This allows time to assess the client’s skill level. After this initial analysis, the pro has a clear understanding of what technical points should be emphasized. A good rule of thumb is to offer no more than two technical suggestions. This prevents the client from leaving at the end of the lesson feeling unsuccessful or confused about their tennis game. A customer’s unrealistic expectations can cause challenges for even the most seasoned professional. For example, the client may say, “I want to work on the scissor-kick overhead because I heard it will take my game to the next level.” If the customer has a 2.5 rating as a player and struggles with a conventional overhead shot, explaining that the first step to hitting a scissor-kick overhead is improving the grip, stance and contact point from the conventional position is a good place to start.
By educating the student on the process of how their goal can be met, the student does not feel their desires and goals are dismissed and neglected. In addition, clearly stating it takes numerous repetitions over an extended period before the scissor-kick overhead will be attempted is essential because the student now understands this skill will not be worked on in the immediate future. Once again asking, “What would you like to do during the lesson?” is a wise idea because the player may not be interested in working on the conventional overhead. If when, discussing the lesson plan for the upcoming hour, the client expresses a desire to work on a little of everything, a few forehands, some backhands, a little volleying, the serve and some point play will make for the perfect lesson.
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First impressions can make or break any relationship and a new lesson opportunity gives a tennis pro the possibility of establishing a repeat client and a tennis devotee.
The player should also be asked to give one or two areas of focus. Once the on-court portion of the lesson has concluded, a few minutes to follow-up and receive some feedback from the student furthers the development of a personal connection. A review of any techniques for future work are appropriate and a possible future lesson time can be discussed. There are numerous factors affecting how much the student enjoys their first lesson. Ultimately, how well the pro connects emotionally with the student will have the biggest impact on establishing a repeat client. The smiles, the non-verbal communication and the inflection of the pro’s voice all leave a lasting impression as to his likability and driving repeat business. BR July/August 2017 | BOARDROOM
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BONNIE J. KNUTSON
MEMBERSHIP MUSINGS
Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of Hospitality Business, Broad College of Business, Michigan State university, Dr. Knutson is a member of the Country Club of lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu
How Would Members Spend $86,400 A Day At Your Club? Time is probably the most valuable thing we have. In today’s crazy world, it seems as if everyone is time-strapped, time-poor, time-starved.
Unlike money, time isn’t fungible; no matter how long or hard we try, we can’t make any more of it. We might be able to reallocate our time but we can never increase our supply. That’s why time is becoming such a luxury … why we value it so much. While time may be a luxury for your members, different generations view it differently. Research conducted by Unity Marketing, found that the three major consuming generations – Baby Boomers, GenXers, Millennials – view time in their own way. The 76 million Boomers are still the largest consuming generation. Boomers are the “old guard” and think in terms of an 80-year lifespan. Passing their half way mark, and having “been there, done that,” they are trying to figure out what they want to do with the years they have left. Because they have fewer day-to-day obligations, they have more spare time and are looking for new experiences and challenges. But when targeting these members, remember two things. First, with age often comes health challenges making it harder to turn a door knob (think levers), read text (use 14-plus point font), or walking on uneven surfaces (think floor coverings, walkways, landscaping). Secondly, of course, 60 is the new 40. “Old,” “senior,” and “mature,” are bad words. GenXers live in a pressure cooker, 24/7. They are in the heights of their careers and wondering if they will accomplish what they thought they would. Often they are the sandwich generation, with both commitments to and responsibilities for children and aging parents. They would love to have an eight-day week with 36 hour days to get everything done they want and need to do. The key for these members is to make everything as easy as possible – i.e. expedient. But whatever you do to increase expediency, recall that this generation is dealsavvy and is always looking for good value because they can carry a heavy financial load. You can’t nickel and dime them. 80
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Millennials are in the aspirational part of their lives. The grew up watching Chrisley Knows Best and Keeping Up With The Kardashians. They have also grown up traveling both here and abroad – family vacations, spring breaks, and internships. Being a member of your club can be part of their lifestyle. The key is getting the “influencers” to join because this group trusts each other, not advertising. And like GenXers, this generation looks to get the most out of their membership for the least money. So let’s go back to the $86,400. To take us there, I want to borrow from a favorite website, Board of Wisdom: Imagine there is a bank account that credits your account each morning with $86,400. It carries over no balance from day to day. Every evening the bank deletes whatever part of the balance you failed to use during the day. What would you do? Draw out every cent, of course? Each of us has such a bank. Its name is Time. Every morning, it credits you with 86,400 seconds. Every night it writes off as lost whatever of this you have failed to invest to a good purpose. It carries over no balance. It allows no overdraft. Each day it opens a new account for you. Each night it burns the remains tomorrow. To realize the value of ONE YEAR, ask a student who failed a grade. To realize the value of ONE MONTH, ask a mother who has given birth to a premature baby. To realize the value of ONE WEEK, ask the editor of a weekly newspaper. To realize the value of ONE HOUR, ask the lovers who are waiting to meet. To realize the value of ONE MINUTE, ask a person who just missed a train. To realize the value of ONE SECOND, ask someone who just avoided an accident. To realize the value of ONE MILLISECOND, ask the person who won a silver medal at the Olympics. Yesterday is history. Tomorrow is a mystery. Today is a gift. That's why it’s called the present. Give your members the gift of time. Your Bottom line will thank you. BR
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
The Perils of Membership Categories - Part III So, let’s review: We’ve passed and executed the capital improvements and expansion projects. Now the membership is getting buyer’s remorse and panic talk about expanding membership categories are underway. Part I of this series forthrightly laid out the quick benefits of membership category expansion. In Part II, we flipped the coin and focused on the value dilution of membership expansion. Now in our final submission to this conundrum, we look at culture fracturing and the creation of the non-equity mindset. Diminished club community – As with any society, the more classes you have, the more likely issues are to rise with who has what status and what privilege. A private club has often been defined as a group of people with common interests. The more membership categories that exist, the less common the interests become. While most clubs do have some cliques, or what I also like to refer to as sub-cultures, I suspect that they mostly were developed naturally over time. When more membership categories are developed, chances are more sub-cultures will develop but instead of this happening naturally, it becomes forced and causes eventual division at a very rapid pace. This may be the most critical detraction for membership category expansion. Non-equity mindset – It’s really interesting how social members introduce themselves to other members for the first time. “Hello, my name is Joe, and this is my wife Sue, we’re just social members.” I hear this all the time and what surprises me is that social members hardly ever say that they are “members” without adding on the tag of social. I guess they do this for two reasons: 1) they see themselves as not having ownership in the club by virtue of their non-voting status and thus must announce their diminished capacity, and 2) because golf is such a prominent aspect of country clubs and they have very little or no access to golf, they must announce their status as if they are not part of the big picture. Financially speaking as a non-voting member, it is naturally difficult for them to take whole-hearted ownership in the club. But the type of ownership I’m referring to is club pride, feeling as an equal part of the club community. I think most of us realize the importance of having these folks feel as though they belong. Usually what drives someone to be a non-voting member is that they have interests in things other than golf (racquet sports, dining-so-
cial, etc.) and they only want to pay for what they use. Having stated the non-voting members’ position, it is also important to understand their interaction with voting members when it comes to their personal club concerns. While the non-voting member does not have the right to vote, they do have a right to voice their opinion. Because they do not have a stake in the totality of the club, it’s natural for them to rally together for their cause. It is difficult for them to sign onto the mission of the club as they feel that they are just one segment of the club. Why would they take interest in something that doesn’t interest them, e.g., golf? This is a very difficult paradigm to manage and it is a topic that’s difficult to talk about. As a long time club professional, I have come to realize that a member-owned country club is nothing more than a mini-government. And as our U.S. government has a two-party system, membership categories can behave in the same fashion as political parties and we all know how this is working out. (Insert laughter here.) My point is that when you add membership categories and expand the population of non-voting members, you may be making one party stronger than the other. Or in other words, when you have more non-voting members than voting, you may take comfort in knowing that they can’t vote, but the social climate of the club becomes strained, contentious and fractured. Again, this topic is very delicate and complicated and must be broached with the upmost caution. Non- voting members are important as they complement the needed revenue stream that is essential for our existence. They are needed for operational balance. However, if the population of non-voting membership is not regulated properly, then the club culture becomes out of balance, which defeats the purpose as to why all of us are here in the first place, and that is to be one happy family. As more categories are developed, the more unbalanced your club community becomes. Recommendation. Once you open the gates to a higher flow (members) and you discover that this act wasn’t needed, it’s difficult to put the genie back into the bottle. And most importantly, we want to provide adequately for our existing members first. What seems like a simple “access to the tee” problem is really a more complex issue that deals with value and equitable rights of a member. In my opinion, this issue needs to be addressed first and foremost before proceeding with other categories. BR July/August 2017 | BOARDROOM
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GREGG PATTERSON
TRIBAL MAGIC
gregg Patterson served the Beach Club of Santa Monica as its general manager for 33 years before retiring in 2016. He’s also a recipient of Boardroom magazine’s Award of Dedication for his timeless, energetic and dedicated service to the private club industry. Patterson is president of Tribal Magic and can be reached via email: gJPAir@aol.com
Breaking the Mirror Who Are YOU???
Manager Sue is in her office, 9 a.m., seated on her orthopedically designed, high fashion “You are The Big Cheese” chair, about to meet, for the first time ever, Bob Ambitious, an up-and-coming assistant manager who’s come to her for advice and insight into his journey to super stardom. And she’s pondering. She coughs, takes a big gulp from her high octane high and mighty double caffeine super charged triple mocha macchiatto, enjoys a hugely satisfying deep drag on her nicotine charged-no-carcinogens-steam-only big vap, gives Bob Ambitious her penetrating “I am A Big Cheese and you are nothing” gaze, contemplates his chipped tooth, taco-stained suit, the “no-belt-needed-because-we’reguaranteed-to-stretch-as-you-get-older” trousers, watery eyes, runny nose and pale “never seen the sun” complexion, and grizzles to herself. “How can I get an overly-ambitious, over educated-over certified hungry puppy like Bob Ambitious who’s armed with his “this is too good to be true” resume and a basketful of “he walks on water” recommendations from relatives and friends, to see himself as others see him, to expose who he is to himself so he can begin the journey to super Stardom?” She ponders Bob Ambitious and broods on the mirror and the window – the “Me” Bob sees when he looks in the mirror and the character she sees when she looks through the window and stares at the naked him. And she’s suspects that the Bob Bob sees in the mirror isn’t the Bob she sees from her high fashion, orthopedically designed “You are The Big Cheese” chair. She ponders how best to “break Bob’s mirror.” “Should I have Bob Ambitious professionally interviewed by a career coach, a neutral third party who’ll tell it like it is? Someone who’ll dig through his blindness and help him see The Bob others see when they give him the look?” Hmmmmmmm. “Should I have Bob Ambitious take a professional, online, “guaranteed neutral” personality test that’ll profile “who he is” without bias or emotion? Hmmmmmmmmm. She ponders. “Should I create a loving-hands-at-homecheap-and-dirty list of questions that’ll get Bob talking and force him to break the mirror and look through the window?” Hmmmmmmmm…… Sue ponders. Gulps. Drags. Hmmmms again. And ignites! “I’ve got it! I’m cheap. I’m a 84
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talker. I’ll ask him some off-the-wall questions that’ll strip him naked and expose him to himself. And I, the inquisitioner, will have fun in the process!!!” WHO ARE YOU?
Bob Ambitious straightens his taco stained tie, gives Manager Sue a professional chipped tooth smile and waits patiently for the mentoring to begin. Manager Sue coughs, grunts and locks eyeballs with Bob, delivering her best “I’m a serious club professional” look and zings Mr. Ambitious with an opening “let’s get this conversation going” question. “My good friend Manager Tom at The Wanna Be Club suggested we do mentor / mentee…but I’ve never met you before. I didn’t read your resume. I don’t have a clue who you are. So…who are you?” Bob Ambitious stares. Manager Sue stares back. Bob Ambitious begins to twist and wiggle, gurgling, straightens his taco-stained tie, smooths his hair, clears his throat, ponders a moment, asks himself, “what’s this legend of clubdom looking for”, reminds himself that first impressions matter, knows this question’s a biggie, smiles the “I’m terrified” smile of the frightened, and stammers, “Could you clarify the question?” Manager Sue gives Bob Ambitious the stare. Bob weeps inside. And feels the sweat pour forth from beneath his “guaranteed-to-stretch-as-you-get-older” waist band. Manager Sue gives her big nicotine vap a long, leisurely tug, takes a big gulp from the mug, squints, gives Bob Ambitious a penetrating look and begins the asking. “I need to know who you are, not just who YOU think you are but who WE think you are, if I’m going to mentor you for the next 17 years or so.” Sue drags deep on her high nicotine big vap. “I’m going to ask you a bunch of questions that’ll tell me who YOU think you are, and the answers will help ME determine if who you are is anything like the who I think you are.” Sue drinks. Bob stares. And the talk fest begins……. ANSWER ME THIS
Manager Sue begins with the easy one. “If there was only one word you could use to describe yourself, what would that one word be?” Bob just-graduated responds. “Tiger. Because I’m fearsome and wild.”
Manager Sue looks at Bob’s wimpy gaze and slouching self and ponders…“Tiger?” Hmmm………. Manager Sue. “Fill in this sentence. You’ll know you’ve met me because…” Bob Ambitious responds. “Because you’ll feel my heat.” Manager Sue takes a closer look at his pale flesh, untuned body and dull 10-degrees-away-from-lifeless eyes. Hmmm… Manager Sue. “Passions define the professional. What’s your big passion?” Bob’s lights up like a frosted 20-watt bulb. “I love sitting for hours in front of my television watching Perry Mason reruns, popcorn and cheese-its in one hand and cane sugar sweetened soda pop in the other. What a howl!” Manager Sue ponders Bob’s big passion, gives him the look and wonders. Hmmmmm……… Manager Sue. “If you could only show me one photo that captures you as you see you, what photo would you show me?” Bob Ambitious responds. “Me receiving the “most likely to keep reading into old age” medal from my grade school book club.” Manager Sue ponders the photo. Hmmmmm…… Manager Sue. “What is the most significant life-changing experience you’ve had and why was that experience a lifechanger?” Bob Ambitious sniffles, coughs, blows his nose and responds. “My life changed when I graduated 147th out of 150 in high school because it proved I could spank the competition if I put my mind to it.” Manager Sue ponders The Spanking. Hmmmmmmm…. Manager Sue. “What’s the one thing / object / activity you’d point to and say, “See this and you’ll see ME because THIS is me!” Bob Ambitious brushes week-old taco off his trousers. “Look at my high fashion professional grade clothing and you’ll know me.” Manager Sue ponders Bob’s suit/tie combo. Hmmmmmmmmmmmm….
Manager Sue asks her final big question. “What’s your why in life, and how does clubdom fit into your personal why?” Bob Ambitious stares at Manager Sue. Manager Sue stares back. Bob responds. “Huh???” Hmmmmmmmmmmmmmm…. LET THE JOURNEY BEGIN
Manager Sue ponders Bob Ambitious. Bob’s got a problem. He’s looking in the mirror when he should be looking through the window. If Bob wants to go from non-entity to big cheese, he needs to see “Bob” from the other side. He needs an “outsider’s perspective.” He needs to break the mirror. Bob’s got needs and choices. He could use a professional coach, a paid outsider to help him break the mirror. He could use an objective tell-it-like-it-is managerial mentor. He could use a “tested and perfected” self-assessment tool like Lumina Spark or Myers-Briggs. But whatever choice he makes, needy he is. Time to lay it on the line. Time to break the mirror. Manager Sue leaps from her chair, filled with the buzz. “Bob, here’s the bottom line. You need to “break the mirror”, look through the window and see “you” from the other side. And once you do, you can begin to beat down your weaknesses and strengthen your strengths. Start your motor, rev your engine, celebrate with a shout …. “And enjoy the journey!!!” BR
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MACDONALD NIVEN
ON THE FRONTLINES
MacDonald Niven, MA, MCM, CCE is with Niven Research and general manager of Almaden golf and Country Club, San Jose, CA. He can be reached at (510)-439-8522 or via email: mac@niven.cc.
Intrinsic Motivation Using the Right Tactics
Trina was an exceptional assistant manager. She was a salaried staff person who worked more than her scheduled hours, she came in early and left late. She was personable with both members and staff. She showed drive and desire, tempered by immense empathy. Chris wanted to show appreciate and help her out. “Trina, you are by far the best assistant manager with whom I’ve had the pleasure of working. I know that your salary is adequate and I’d like to help you get a bit more. You’ve done a great job in “selling” our club events, and even though our catering manager has that responsibility, I’d like to give you a commission on those events in which you participate. Say one percent of the total sales. At the end of each month, just give me a listing of the events and the total revenue and I’ll put you in for one percent. What do you think?” Trina, ever a smile on her face, nodded approvingly and thanked Chris. But, Chris noticed something not exactly as right, there was not the positive exuberance that was expected. Trina is what is referred to as intrinsically motivated. She does the job because it is inherently interesting and enjoyable for her; it supports her innate need to feel competent, autonomous, and related. According to motivation expert Ed Deci at the University of Rochester, there is a continuum of normal motivational tendencies, which ranges from those lacking motivation (amotivated), to those requiring external prompts (extrinsically motivated), to those who are motivated by the inherent satisfaction of the behavior itself (intrinsically motivated). So, why do we want people who are intrinsically motivated? We want both, but those who are intrinsically motivated will perform with higher creativity, be highly engaged, have a positive emotional outlook, and work longer as compared to those extrinsically motivated. In other words – they are the Trinas that we all look to cultivate. In the weeks and months that followed, Chris noticed a diminished drive in Trina. She was as good with the staff and members as ever, but just not as energized. Her month end reports tended to be turned in late, if at all. Chris was mystified. What happened to Chris was a mismatch of appropriate tactics. While Chris wanted to help Trina feel even better about her job, giving her an “incentive” had proven to be detrimental to her intrinsic motivation. 86
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Volumes of research confirm that virtually every type of expected tangible reward made contingent on task performance undermines intrinsic motivation, because they are deemed as “controllers.” It is theorized that intrinsic motivation is inherent in humans – we want and enjoy being intrinsically motivated. To keep Trina in her ”zone”, Chris needed only to ask her to perform optimally challenging duties, follow up with positive and open feedback, and refrain from demeaning evaluations. Critical to the success of intrinsically motivated people are the senses that the person is both competent and autonomous. Taking away the responsibility of choice (and consequence) from a highly competent person will reduce or eliminate the intrinsic motivation that is naturally desired. Intrinsically motivated people thrive on positive feedback, the self-perception of competence, the feeling of autonomy, and being part of the team. Chris could have saved the one percent and given Trina the appropriate boost that Chris was attempting by simply telling her what a great job she was doing, how well she was progressing, and that she was an outstanding team leader. Chris could have thrown in dinner for two, but only as a gift and not a contingency on work – gifts are good! BR
EXECUTIVE COMMITTEE
CMAA Recognizes
CCM and CCE Achievements Twenty-five club management professionals have attained the designation of Certified Club Manager and another seven recently attained their Certified Chief Executive designation.
The CCM designation indicates that a club management professional has completed a rigorous course of study and training and shows a dedication to proficiency and expertise in club management, while the CCE designation was developed to recognize those managers who have shown the ability to successfully serve as the most senior manager in a club. The CCM designation, established in 1965, ranks as the hallmark of professionalism in club management. It is a valuable, internationally recognized and widely respected mark of a manager’s commitment to professional development and the club industry. Specified education requirements, attendance at least one World Conference on Club Management and activity within their local chapter are among the requirements to receive the CCM designation. After these conditions have been met, the individual must pass the CCM exam. The CCM title shows a long-term commitment to professional development and club management. The CCE designation augments the Club Managers Association of America’s Certified Club Manager designation (CCM), which is viewed as the “hallmark of professionalism” in the club industry, the CCE requires managers to maintain professional or retired professional membership status in the association, to have achieved the CCM designation, to have obtained Honor Society status, to
have successfully completed Business Management Institutes Tactical and Strategic Leadership, and to have served as the top executive in a club for a minimum of five years. The following club managers successfully met all of their CCM requirements recently: Tiberius Adascalitei, CCM, The Heights Casino, Brooklyn, NY Jeffery Allbright, CCM, Dublin Country Club, Dublin, GA Richard Arnold, CCM, Rosedale Golf Club, Toronto, Ontario, Canada Brian Baldwin, CCM, Baltusrol Golf Club, Springfield, NJ William A. Bowden, CCM, Pelican Bay, Naples, FL Jeffrey Brown, CCM, Sanctuary Golf Club, Sanibel Island, FL Simon Carey, CCM, Rolling Rock Club, Ligonier, PA Wray Crippin, CCM, Green Tree Country Club, Midland, TX Joshua Gary, CCM, Baton Rouge Country Club, Baton Rouge, LA Margarita Gilo, CCM, Isleworth Golf & Country Club, Windermere, FL Jeremy Gregory, CCM, Berkeley Tennis Club, Berkeley, CA Luke Heinsohn, CCM, North Hills Club, Raleigh, NC Jay Johnson, CCM, Governors Club, Chapel Hill, NC Brad Justusson, CCM, West Shore Country Club, Camp Hill, PA David Ley, CCM, North Shore Golf Club, Menasha, WI Craig Lopes, CCM, The Moorings Yacht and CC, Vero Beach, FL Brett Palmer, CCM, Innis Arden Golf Club, Old Greenwich, CT Patrick Pardington, CCM, Oakland Hills CC, Bloomfield Hills, MI Carolyn Rehman, CCM, Cosmos Club, Washington, DC Eric Sargent, CCM, Ladies’ Golf Club of Toronto, Thornhill, Ontario, Canada Frederick Schultz, CCM, Oakdale Golf & Country Club, Oakdale, CA Jason Silbovitz, CCM, Bellevue Golf Club, Melrose, MA Jeff Spencer, CCM, Callawassie Island Club, Callawassie Island, SC Joshua L. Thomas, CCM, Green Island Country Club, Columbus, GA Phil Wheeler, CCM, Oklahoma City Golf & Country Club, Nichols Hills, OK The following have successfully met all CCE requirements: Darin Crippen, CCM, CCE, Wianno Club, Osterville, MA Frederick Eder, CCM, CCE, The Muttontown Club, East Norwich, NY Carl Granberg, CCM, CCE, Rochester Golf & Country Club, Rochester, MN Joseph Krenn, CCM, CCE, Farmington Country Club, Charlottesville, VA Jason Macaulay, CCM, CCE, Highland Falls Country Club, Highland, NC Steve Malvinni, CCM, CCE, Vasari Country Club, Bonita Springs, FL Michael Smith, CCM, CCE, Country Club of Rochester, Rochester, NY For more information on the CCE designation and requirements, please visit www.cmaa.org/Certification.aspx. BR
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CHRIS BOETTCHER
CLUB SERVICE
Christopher Boettcher, proudly a CCM and CCE, is the gM/COO at Burlingame Country Club near San Francisco, CA and a regular contributor to BoardRoom magazine. He can be reached at chris@boettcher.com.
Tenure is Good, for SOME… Tenure at your club can be a double-edged sword. I don’t mean your tenure, by the way - we’re talking about staff… those that keep the programming, fun, activities and business of the club all running. And by the way, there are a lot of moving parts and it’s not an exacting business. Do you think Mr. Wadsworth Jr. likes his veal piccata the same as way Mrs. James does? Probably not. The trick is to learn the “likes” - right? And this leads us to the discussion of tenure – staff members that stick around long enough to learn the community. Tenure - status granted to an employee, usually after a probationary period, indicating that the position or employment is permanent.” That’s the definition. Now, would you want that in your business? In all the positions of your business? I’m guessing probably not. It’s the word “permanent” that seems like such a commitment, right? In most cases, it’s nice to have the same staff. You get to know them; and if they do a good job, they provide a stability factor. But is that necessary for all departments and all positions to keep the company moving forward? Where do fresh ideas, a sense of urgency (a key factor in top quality service), and real desire to get better and better really come from? Is the pay-cap going to run up if you don’t have turnover? In the club business, we have a conundrum that we deal with all the time when it comes to tenured staff. The opening waiver in this advice is this: The culture of your club must dictate the approach to tenured staff. Note the period. End of story. The culture and traditions dictate everything. The key is to leverage that culture and traditions for the operational needs of the club. How do you do that? Well, a tenured GM/COO should be able to figure that out pretty easily. And I mean an experienced one, not necessarily tenured at your specific club. My take at most clubs is that the front-line service staff and some heart-of-the-house positions (grounds staff, some kitchen staff, and housekeepers, etc.) are the best positions for tenure. They know the place, the kooks and crannies of a club that has been around a million years. They know how No. 17 green needs to be punched, because of its unique design. They know what Mr. Quibley likes in his supposed “soda and double-lime” and, because of these familiarities, they truly become endeared. 88
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The same goes for your, what I call, division managers. Some call them the department heads and whatever term you use, it’s the controller, clubhouse manager, golf pro, grounds superintendent, tennis pro, chef (insert your other heads-of-departments here) and, of course your GM/COO or equivalent there-of. These are positions you want to try and hold on to. They lead the way and turnover is never good for these spots, unless carefully planned. I’ll get to that later, but, in most cases, these are professionals that you want to maintain stability. They will bring their departments stability and create the environment for your club culture in each of their areas, hopefully, gelling to the antithesis of your club’s specific culture. The ones where you do not necessarily need tenure are the middle managers. These guys and gals are entry to mid-level supervisors who are usually your “boots-on-theground” folks. They make the managers look good and execute the directives when the managers can’t be there. The same goes for any good assistant general manager. This position, and that of clubhouse manager, is the exception because that’s the track to be a GM/COO. Just like a good first assistant golf pro or assistant tennis pro, if they’re really good and have the sense of urgency, a servants’ heart, they usually want to move up the ladder to be a department managers themselves someday. There are obviously exceptions, again, depending on the culture. But I would advocate that this segment, mid-managers are ripe, forward thinking, upward-mobile individuals. It’s also a great breeding ground for future department managers for the club, whether it’s an in-house move up the ladder, to another club in the industry or a return to your club. Taking good care of them is important. Guidance and monitoring from the management leaders is what they are looking for. Moldability happens to be another great side effect of mid-managers, especially the younger ones! They can be easily molded into what you need. So if that assistant pro leaves, or that sous chef moves on, be happy for them – hopefully they are moving up into a position that they too can guide staff. So, try to build tenure where you can – your club will really benefit from it – in those important positions. Offer good incentives, good pay, guidance and a work-life balance. It will be a great adventure. Lead ON! BR
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have made that decision the answer must be: “We discussed the issue thoroughly. All sides were represented. Now that the board has passed the policy and it is now my job to help it succeed. It is the same for every board member no matter how they initially voted.” 5. Leadership for the president and GM is paramount. It’s very easy for organizations to go astray if there is not competent leadership. The membership expects the elected volunteer leadership to team with the club management to deliver a positive club experience. Therefore, it’s critical that the club has a vibrant leader in the general managers seat as well as a solid leader in the president’s chair. The president can keep the board members on target instead of running down rabbit trails. The GM can lead through operating results and offer solid guidance to the board on the issues facing the club as a whole and the industry in general. Each understands their roles and responsibilities and they coordinate well together. Jack Sullivan, consultant with Kopplin Kuebler & Wallace, a strategic planning, consulting and executive search firm in the private club industry.
Any of the following issues pertinent to a specific club should be part of the action plan, which is the main component of a club’s strategic plan. This action plan should outline the issue, its objectives and strategies, along with timelines and responsibilities. Orientations – Providing training for all new board and committee members, reviewing key club information and current issues, along with clearly defining expectations and roles and responsibilities. Succession planning for club leadership – Establishing a procedure and process that defines the desired qualities and qualifications for future committee and board members and then recruiting the most qualified candidates. By-laws and rules and regulations – As the governance foundation for clubs, many portions of these documents were established when the club was established and may not have evolved with the changing times and needs. Strategic planning - Club governance is most often a key issue contained in a club’s strategic plan, and Resource management in a club can include the workforce, amenities and the natural resources, such as water that are used in its operations. Restrictions by government agen-
cies are often placed on these resources and in-depth knowledge of their impact and how to manage them is critical. “Any of these issues that are pertinent to a specific club should be part of the action plan, which is the main component of a club’s strategic plan,” Sullivan stressed. “This action plan should outline the issue, its objectives and strategies, along with timelines and responsibilities. “Too many clubs are willing to accept things as they are. For example, if by-laws are out of date and restrict a club from moving in a direction that will benefit the club and its membership, then the club should change the specific by-law that impedes the progress. Just because we have always done it this way, does not mean we should continue to do so, “ Sullivan stressed. Gordon Welch, president, the Association of Private Club Directors.
These needs or issues that I outline aren’t new to the business but the need to correct them is growing to a critical stage. I get frustrated when I speak with general managers/COOs and hear the same things over and over. Clubs are like many state governments in the way they operate. Many of them believe the problem is cutting cost but often the truth is a need to generate more income. Clubs fear they will lose members if they increase dues, fees and prices and they may. A club can’t save their way into profit. The board’s role is to tackle the issue and bring in more, or new income. That burden cannot rest solely on the shoulders of the staff. In Welch’s opinion, here are the industry’s top governance issues. 1) Master planning for future – The need for facilities upgrades and raising the money for it. 2) Controlling operational expenses: Water, salaries (being able to afford or keep key staff), healthcare and debt reduction cost are the top concerns. 3) Membership: Finding new members, and membership retention are key. I did speak to one general manager that is raising transfer fees and reducing the number of members 4) Staffing and labor: There is a need for competitive wages and compensation packages. 5) Home Owners Associations – Home Owners Groups: More clubs (and the general manager) are dealing with HOA complaints that are from non-club members. These are difficult and frustrating as the HOA normally has no interest in the club. The members of the HOA have no interest in supporting or investing in the club. ➤ July/August 2017 | BOARDROOM
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“Clubs and their boards must start playing a role in vetting new or potential board members. Experience is the key,” Welch explained. “The days of the ‘good old boy club’ need to be past. Today boards should be selective in the process of cultivating talent for the board. “However, the GM can’t do it all. Quality support staff is needed to assist the GM in the many roles and issues they face daily. “If the club has an approved operating budget the board needs to assist in finding income sources to accomplish the goals (budget) laid out for the year. “We see many clubs cutting expenses. Some that I know of have been asked to cut up to $500,000 in a year. This certainly affects the members and staff. Instead of cutting every year clubs need to look to new income sources,” Welch stressed. Here are other major private club issues as defined by Randy Addison, principal, Addison Law and Robert Jones, principal, Ethos Club & Leisure, with Randy and Dallas Addison.
1) Understanding and misunderstanding of the board members duties, responsibilities and obligations. Today the tendency to micromanage club management is at an all-time high and an epidemic in every board room. Because of the turnover of members in the board’s annual election, there is a constant need to have the members understand and be advised of their duties and role as a board member. The board powers and duties should be specifically addressed in the club bylaws, summarized as (i) to set club policies, (ii) provide for club’s long-term goals, mission, and brand (iii) effective measured oversight and review of club management, not “hands on” day-to-day operational oversight or counter directives from the board given at the lower tier departmental level. There is a need to (iv) establish governance procedures for club decisions and member conduct and (v) provide leadership to the members in major undertakings, new membership offerings, new categories, etc. The clubs should annually perform a board strategic planning week, during which the following should take place: (i) a re-orientation of the current board members, (ii) an orientation for new board members, and (iii) a goal setting session to set the next fiscal’s goals for the board, for the year, (iv) a SWAT analysis of regional / local competition, (v) consultants reviews of national trends, financial club bench marking, and facility planning. During this planning week, the club’s leadership team should present departmental business plans by area, and their respective needs and goals for the upcoming fiscal period.
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2) Problematic disputes between individual board members that lead to factions on the board and in the membership. Members of the board are elected to represent the membership and club as whole, not specific groups, or personal projects, or the wants and needs from their golf or social groups. For example, the golf committee, house committee, tennis and social committees all have different goals and concerns. Their annual goals should be set by the board in congruence to the board’s annual goals. Decisions are to be addressed and made based on the fiduciary duty to all members and the club, not the individual desires or personal obligations of an individual board member. All conversations within the board during discussion of issues and potential problems are to be on a strict confidential basis until a decision is reached by the board to avoid misinformation and dissenting factions of members develop before the board’s decision. Failure of any board member to adhere to the primary commitment should be cause for immediate dismissal. A firm “code of conduct” is to be read, understood and agreed to by each board member in writing before service on the board. Failure to abide by the code of conduct is cause for immediate dismissal of a board member. 3) Hasty major decisions, made by the board to deal with club issues without proper due diligence and consultation with knowledgeable third-party input, cause major failures. An example is the board implementing a new membership category or membership plan to deal with membership issuance not meeting plan, without (i) review of the club’s obligations under the existing and previous bylaws and membership agreement, (ii) review of marketing conditions, (iii) long term effect on membership pricing, (iv) legal constraints and (v) impact on existing resignation lists, (vi) a thorough review and understanding of regional and local club competition, and demographic data. Major decisions not tied to factual analysis and proper research are generally unsuccessful, and will cause long term issues, and possibly club failure. 4) Board’s attention to detail management issues, the issue of the day versus working on long term strategic goals and policies for the club is another major issue. The board’s role is to set the policies and procedures and club’s goals and objectives for the management team. Board Members should not be dealing on an individual basis with employees and their concerns. These matters should be brought to the attention of the general manager/COO for handling. We have created a specific “Complaint and Griev-
ance Procedure” section in our club bylaws to specifically deal with how members complaints are to be heard and addressed, including bylaws and rules and regulations infractions and procedures regarding employees. Remember, “management operates, board sets policies and provides member/owners input,” emphasized Randy Addison. 5) Boards need to recognize that the operation of a club is a complicated service business” not a part time voluntary business. Country club and golf clubs are like a “small city” with a variety of issues, including membership, food and beverage, liquor laws, water issues, financial, compliance with employee/labor laws, environmental, land use regulations, adjacent homeowners and HOA issues, tax issues and fluctuating market conditions. “These issues must be addressed and with a long-term strategy and policies to provide management the tools for success. The board must assemble a management team and third-party consultants that are in the club business in advance to protect the interest of the club and the members,” added Addison. The Association of Private Club Directors offers solution to many of these issues, and more specifically to the vetting of board members. “Our association assists in educating the board members to know and understand what their role and responsibilities are,” explained APCD’s president, Gordon Welch. “The burden of ‘training’ the board should not rest on the shoulders of staff or the GM. The board needs someone who will work with them and be blunt or forward when reviewing the needs and responsibilities of the board.” PUBLISHER’S FINAL THOUGHTS
As I mentioned earlier, it’s vitally important for private club boards to be well aware and have knowledge of the issues facing their club, because without that knowledge base, the club’s sustainability hangs in the balance. It’s incumbent upon both the board and the club’s general manager to collaborate in guiding the club’s operation, it’s also incumbent upon the GM to provide the board with background reports, research documents and current information required for diligent, incisive decision making. At the same time, the board’s decision-making process means setting firm, viable policies that allows the club’s paid management to fulfil the policies established by the board. All too often during my travels visiting private clubs across the country, I’ve encountered clubs without written job descriptions for the board itself, the board’s directors and also committee members. In other words, they don’t know what they’re supposed to be doing for the betterment and sustainability of their club.
Jerry McCoy reiterates this point when he suggests the club needs to have basic governance parameters to guide their actions, including rules for how the board functions, how the board interacts with management, and how the roles and responsibilities for each are spelled out clearly. And this is all for naught, of course, if the board ignores its own advice. The importance of board orientations ties directly to these parameters. It’s vital that all board members (new and old) and committee members receive an orientation that provide key club information and a review current issues. And it’s at the board orientation that the roles and expectations for everyone are clearly defined. All so often we hear of the same (and old) issues facing boards and paid managers. As Randy Addison and Robert Jones suggest, micromanagement remains at an all-time high…boards just cannot leave well enough alone and keep their fingers out of management’s pie. Addison make a strong argument in saying the board’s powers and duties should be addressed specifically in the club’s bylaws and policies setting out the club’s long-term goals, that also clearly defines the board’s oversight of club management and counters micromanagement. An increasingly important issue that also must be confronted is that of home owners’ associations and their relationships to private clubs. What’s the relationship of one to the other? How do clubs deal with HOA complaints that arise from people who have no interest in supporting or investing in the club? None of these issues are new to the private club industry…in fact, they’re consistently raised at clubs all over the country. Yet many clubs (boards) are unwilling to make the decisions they need to make. It’s as the APCD’s Gordon Welch says, “many of them believe the problem is cutting cost but often the truth is a need to generate more income. A club can’t save their way into profit. The board’s role is to tackle the issue and bring in more, or new income. That burden cannot rest solely on the shoulders of the staff.” As Jerry McCoy reminds us of an old adage: There is a GM for every club and a club for every GM, but every club is not for every GM and every GM is not for every club. This goes for elected volunteer leaders as well. Finding the right synergy and trust between management and the club’s volunteer leaders, and dealing with the club’s governance issues in a timely manner is vital to a club’s future. At least, that’s the way I see it. BR John G. Fornaro, publisher
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from Wellness Committee | 67
“At Technogym, we’ve focused on providing innovative products and technologies, emphasizing the social aspect of wellness and sport to keep people engaged. We will continue to evolve our offerings in these areas as consumers’ wellness habits change,” said Nerio Alessandri, Technogym’s president and founder. Rick Farrant, founder of Great Life Golf has been expanding rapidly in small markets that include Topeka and Wichita, Kansas and Sioux Falls, South Dakota. His model is simple: buy a distressed property, add a fitness center, provide healthy options and cater to mom and the family. Great Life Golf has over 30 properties and growing rapidly. The message here is you don’t have to be a Florida, Scottsdale or California high-end club to offer programming and services to be relevant. CLUBS IN THE NEWS
I’d like to recognize a few clubs and their passionate leaders that have recently invested in or are in the process of, building wellness and lifestyle centers. More importantly, it’s relevant to note the immediate and measurable impact the “announcements” have had on their membership sales. Kudos to Nick von Hofen, general manager at Collier’s Reserve Naples, FL for his recent success. By design, Collier’s Reserve is an intimate high-end luxury club with just 320 members. The club added 18 new members within six months of announcing the opening of its new sports center. That’s almost a six percent membership increase in the first year. “Our new resort-style sports center complements our members’ lifestyles and has been a wonderful new addition for attracting members. We offer a variety of fitness classes and personal instruction sessions that has really maximized our members’ experiences at Collier’s Reserve,” explained von Hofen. “This summer we are focusing on from Membership Committee | 70
W: Welcome new ideas. This should be a fun process that sparks “outside of the box” thinking and new ideas. Embrace them. X: Exceptional. Great things will come from taking the time to learn more about your members, I guarantee this. from Gregory/DeLozier | 72
showed that fitness (71 percent), family access (66 percent), pool (62 percent), social events (57 percent) and tennis (28 percent) are also important to Millennial prospects. Whether you think Millennials are the new greatest generation or 80 million selfie-snapping, Twittering, Instagramming ne’er-do-wells, we still represent an opportunity for private clubs to add to their membership rolls and bring more young people into the club. 92
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growing awareness of our ‘America’s Healthiest Club’ designation within our membership and community. Fitness is not just a trend, it’s our livelihood.” Vineyards Country Club, Naples FL, immediately following the announcement of the wellness and lifestyle center, has had its best sales in 27 years. The center to be completed in the summer of 2018, will feature infrared saunas, salt chambers and a host of lading edge spa and wellness services. Vineyards will host the Wellness Academy™ beginning September 2018. Paul Malonson, the club’s general manager/chief operating officer, is a Wall-street kinda guy with a keen sense of what a member experience should look like, all while staying focused on a return on investment. “The realization in today’s country club marketplace is that recreation and social experiences are not enough. Our discerning clientele yearns for a lifestyle of transcendental experiences. It is incumbent upon us to provide accommodations and forums because we truly care about facilitating serenity, joy and progression in their lives,” he enthused. Yes, wellness is very difficult to define and for some, very difficult to implement because it involves a significant investment, collaboration among multiple departments and knowledge of the needs of multiple generations. The one thing all America’s Healthiest Clubs have in common is they have leaders that have created a culture that embraces wellness principles designed to create an environment of healthy, active living. So, if you are thinking about implementing a wellness program, looking to expand or build a fitness center, offer a workplace wellness program to help reduce health care costs, or looking to expand your farm-to-table program, consider spending three days at the upcoming Spa & Wellness Retreat Kick-off, September 21-24th in Los Angeles at the Jonathan Club It’s a time some hands-on “education.” Bring your spouse and take-back some useful and actionable ideas. BR Y: Yesterday’s is in the rearview mirror. The methods that worked yesterday aren’t working at clubs today. Look forward! Z: Zero percent chance you won’t see benefits. Member data mining will pay off quickly in the form of happier, more engaged members. What are you waiting for? Start member data mining today! BR In the next issue of BoardRoom, we will reach deeper into the survey results to discuss the most effective marketing and communications practices to target the enigmatic demographic known as millennials. BR Michael Gregory is a senior manager and Bennett DeLozier is a senior associate at Global Golf Advisors. They can be reached at: mgregory@globalgolfadvisors.com and bdelozier@globalgolfadvisors.com
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APCD MOST TRUSTED VENDORS & CONSULTANTS N D O R
It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRuST – the most precious commodity and transaction of them all. These are businesses that put their customers first and do not focus solely on profit at any cost.
Amenities
Clocks
2536 Manana Drive Dallas, TX 75220 P: 214.351.2834 Toll-free: 800.969.8008 F: 214.351.2834 www.sportssolutionsinc.com
444 Reading Road Cincinnati, Ohio 45202 P: 800.543.0488 www.verdin.com
Consulting
Architects 6 West 18th Street 9th Floor New york, New york 10011 P: 212.229.0200 ext. 120 www.lichtencraig.com
7730 E. Belleview Avenue., Suite. A-101 greenwood Village, Colorado 80111 P: 720.266.2582 www.mai-architects.com
North Palm Beach Office 1295 uS Hwy One North Palm Beach, Fl 33408 P: 561.626.9704 F: 561.626.9719 Peacock + Lewis Naples Office 1610 Trade Center Way, Suite 5 Naples, Fl 34109 P: 239.631.2332 F: 239.300.6402 jon@peacockandlewis.com www.peacockandlewis.com
500 Skokie Blvd #444 Northbrook, Il 60062 P: 847.480.4844 | C: 847.421.4537 B.R. Koehnemann brkoehnemann@kempersports.com www.kempersports.com
locations in Phoenix, Northern Virginia, Atlanta, Chicago and New york C: 602.684.0251 | P: 623.322.0773 Whitney Reid Pennell, president whitney@consultingRCS.com www.consultingRCS.com
Executive Search
501 Kings Highway East #300 Fairfield, CT 06824 P: 203.319.8228 Dan Denehy dan@denehyctp.com www.denehyctp.com
Tampa Bay - 727.366.0487 dick@@gsiexecutivesearch.com 15990 N greenway Hayden loop C-100 Scottsdale, AZ 85260 P: 480.477.1111 phxarch.com
St. louis - 314.854.1321 scott@gsiexecutivesearch.com Cleveland - 440.796.7922 ned@gsiexecutivesearch.com Ft. Myers - 239.221.7045 ned@gsiexecutivesearch.com Northeast - 518.852.0986 dan@gsiexecutivesearch.com
Architects | Planners | Interior Designers 44 North Main Street South Norwalk, CT 06854 P: 203.354.5210 www.rm-arch.com
Washington DC - 540.323.3388 sharlyn@gsiexecutivesearch.com www.gsiexecutivesearch.com
Executive Search Kopplin Kuebler & Wallace Southwest Office 7349 Via Paseo Del Sur, Ste. 202 Scottsdale, AZ 85258 P: 480.443.9102 F: 480.443.9642 Dick Kopplin, partner dick@kkandw.com www.kkandw.com Kopplin Kuebler & Wallace East Coast Office 132 Tulip Tree Court Jupiter, Fl 33458 P/F: 561.747.5213 C: (407) 864-6798 Kurt Kubler, CCM, partner kurt@kkandw.com Kopplin Kuebler & Wallace Cleveland Office 20373 Scott Drive Cleveland, OH 44149 P/F: 440.783.1268 C: 412.670.2021 Tom B. Wallace III, CCM, partner tom@kkandw.com
Foodservice
3908 N 29 Avenue Hollywood, Fl 33020 C: 954.805.7935 P 954.920.0737 sales@deikitchen.com www.deikitchen.com
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APCD MOST TRUSTED VENDORS & CONSULTANTS N D O R
It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRuST – the most precious commodity and transaction of them all. These are businesses that put their customers first and do not focus solely on profit at any cost.
Furniture
Interior Design
Photography
P.O. Box 842 Ashburnham, MA 01430 P: 978.827.3101 sales@eustischair.com www.eustischair.com
95 Reef Road Fairfield, CT 06824 P: 203.259.2555 Craig J. Smith studio@c2limited.com www.c2limited.com
3186 E. la Palma Avenue Anaheim, CA 92806 P: 800.653.5766 www.eaclubs.com
5 Hwy 82 West Magnolia, AR 71753 P: 800.221.0408 sales@southernaluminum.com www.southernaluminum.com
11071 Indian lake Circle Boyton Beach, Fl 33437 P: 954.614.1505 Steve Berlin XHBITZ1@XHBITZ.COM www.xhibtz.com
game Equipment
Real Estate
700 School St. unit. 2 Pawtucket, RI 02860 P: 401.365.1171 Peter Cafaro pcafaro@jbd.cc www.jbd.cc
Kid’s Camps
Technology 821 Executive Drive Princeton, New Jersey 08540 P: .877.671.2267 ext. 500 info@kecamps.com www.kecamps.com
lockers 3780 Rippleton Road, Route 13 South Cazenovia, Ny 13035 P: 888.647.2778 F: 315.655.2033 custserv@cornilleauusa.com www.cornilleauusa.com
golf Course Architect
1825 West Walnut Hill lane, Suite 110. Irving, TX 75038 P: 972.815.4000 Toll Free: 800.433.3630 info@hollman.com www.hollman.com
Menu 14332 Justice Road Midlothian, VA 23113 P: 804.897.8600 F: 804.897.8603 lester george, president lester@georgegolfdesign.com www.georgegolfdesign.com
212 Old Quitman Annex Road Adel, georgia 31620 P: 229.896.1492 C: 678.429.7997 Toll free: 888.324.5020 F: 229.896.1180 Hilda W. Allen hildahwa@gmail.com www.hildawallen.com
2046 Castor Avenue - 1st Floor Philadelphia, PA 19134 P: 215.535.6940 steve@the-polar.com www.the-polar.com
3650 Mansell Road, Suite #225 Alpharetta, gA 30022 P: 888.240.3501 info@globalnorthstar.com www.globalnorthstar.com
uniforms
Pear Tree Plaza Building D 289 Hwy 33 East Manalapan, New Jersey 07726 P: 800.711.5885 F: 732.792.0111 Martin Klein www.ambassadoruniform.com
5442 gateway Plaza Drive Benicia, CA 94510 P: 707.746.7011 Debbie Surani info@highenduniforms.com www.highenduniforms.com July/August 2017 | BOARDROOM
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BOARDROOM MAGAZINE ADVERTISING INDEX ACCP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
EZ links. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
PCMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Addison law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
FOOD-TRAK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Peacock + lewis. . . . . . . . . . . . . . . . . . . . . . . . . . 77
Ambassador uniforms. . . . . . . . . . . . . . . . . . . . . 53
gCSAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
PHX Architecture. . . . . . . . . . . . . . . . . . . . . . . . . 23
Big John grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
golf Maintenance Solutions. . . . . . . . . . . . . . . . 93
PgA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Boothe group. . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
gSI Executive Search . . . . . . . . . . . . . . . . . . . . . . 59
Polar Menus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Bozeman Club & Corporate Interiors. . . . . . . . 25
High End uniforms. . . . . . . . . . . . . . . . . . . . . . . 69
Rogers McCagg. . . . . . . . . . . . . . . . . . . . . . . . . . . 59
C2 limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
HINT - Harris Interiors. . . . . . . . . . . . . . . . . . . . . 51
RSM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Chambers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Image Design. . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Signera. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Club Design Associates. . . . . . . . . . . . . . . . . . . . 63
Jon Nathaniel Wines. . . . . . . . . . . . . . . . . . . . . . 35
Slimfold grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Clubtec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-31
Judd Brown Design. . . . . . . . . . . . . . . . . . . . . . . 61
Style upholstering. . . . . . . . . . . . . . . . . . . . . . . . 67
Clubwise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Kopplin Kuebler & Wallace. . . . . . . . . . . . . . . . . 29
TEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Creative golf Marketing . . . . . . . . . . . . . . . . . . . 8
lichten Craig Architecture + Interiors. . . . . . . . 71
Troon Prive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Daniel Paul Chairs. . . . . . . . . . . . . . . . . . . . . . . . . 15
MAI – Marsh & Associates. . . . . . . . . . . . . . . . . . 13
uSPTA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Denehy Club Thinking Partners. . . . . . . . . . . . . 73
McMahon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
XHIBTZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Distinguished Clubs. . . . . . . . . . . . . . . . . . . . 82-83
Northstar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Eustis Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
ParBar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
BOARDROOM MAGAZINE COUNTRY CLUB INDEX Matthew Allnatt, gM/COO, Jonathan Club, los Angeles, CA
Michael Masson, CCM, gM, Baton Rouge Country Club, Baton Rouge, lA
Chris Boettcher, CCM, CCE, gM/COO, Burlingame Country Club near San Francisco, CA
MacDonald Niven, MA, CCM, CCE, gM, Almaden golf and Country Club, San Jose, CA
Michael Bratcher, gM, Columbine Country Club, Columbine Valley near Denver, CO
Paradise Valley, Scottsdale, AZ
Addison Craig, golf instructor, Jim Mclean golf School at Trump National Doral, Miami, Fl and golf professional, The Bridge golf Club at Bridgehampton, Ny
Royal Oaks, Dallas, TX
Todd Dufek, locker room manager, The Country Club at DC Ranch, Scottsdale, AZ
Rosie Slocum, MCMP, director of membership, BallenIsles Country Club, Palm Beach gardens, Fl
Interlachen Country Club, Orlando, Fl
Nick von Hofen, general manager, Collier’s Reserve, Naples, Fl
Dr. Bonnie Knutson, the Country Club of lansing and the Michigan Athletic Club
Woodmont, MD
Nancy levenburg, member, Spring lake Country Club, Spring lake, MI Paul Malonson, gM/COO, Vineyards Country Club, Naples, Fl
gregg Patterson, member, The Beach Club of Santa Monica, CA Robert A Sereci, CCM, gM/COO, Medinah Country Club, Medinah, Il
Leaders in F&B Innovation
Michael S. Wheeler, CCE, CCM
Matt McKinney, CCM
Jay DiPietro, CCM
Michael G. Leemhuis, CCM, CCE, PGA
COO and General Manager Cherokee Town & Country Club Atlanta, GA
COO and General Manager Capital City Club Atlanta, GA
President and General Manager Boca West Country Club Boca Raton, FL
President Ocean Reef Club Key Largo, FL
Craig L. Lopes, CCM
Richard L. LaRocca, CCM, CCE
Nick Sidorakis, CCM
Phil Kiester, CCM
Brett Morris
General Manager The Moorings Yacht & Country Club Vero Beach, FL
General Manager/COO The Country Club of Orlando Orlando, FL
COO and General Manager Southern Hills Country Club Tulsa, OK
General Manager The Country Club of Virginia Richmond, VA
COO and General Manager Polo Club of Boca Raton Boca Raton, FL
Innovation is a key component of leadership. These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together. The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.
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FOOD AND BEVERAGE MANAGEMENT SYSTEM
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JAY DIPIETRO VENDOR OF THE YEAR
Th e Boa r d Ro o m ma g a zin e
CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 271
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VO LU M E X X I J U LY / AU G U S T
Vo l um e XXI , Jul y /A ug ust 2 0 17
10 | PUBLISHER’S PERSPECTIVE GOVERNANCE ISSUES FACING PRIVATE CLUBS AND WHAT YOU CAN DO ABOUT THEM
24 | EXECUTIVE COMMITTEE THE ELEPHANT IN THE CLUB GENERAL MANAGER JOB SECURITY AND TURNOVER
34-44 | DESIGN FEATURE 62 | BOARDROOM AWARDS PHIL NEWMAN RECOGNIZED WITH BOARDROOM AWARD OF DEDICATION