BoardRoom magazine November/December 2016 by BoardRoom magazine

Th e Bo a rd Ro o m ma ga zin e

CELEBRATING 20 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 267

VOLUME XX NOVEMBER/DECEMBER

Vo lume XX, No vemb er/Decemb er 2016

10 | PUBLISHERâ&#x20AC;&#x2122;S PERSPECTIVE - Should Your Board Meetings Be Open to Members? 40 | EXCELLENCE IN ACHIEVEMENT AWARDS - 2016 Winners Announced 58 | WELLNESS - Lead, Follow or Get Out of the Way - How 4 Private Clubs are Shaping the Future of the Club Industry Cove r P h oto by : P h i l i p G a b r i e l P h oto g ra p hy

EDITOR’S NOTE |

Ideas Just Keep Flowing The 2016 Distinguished Ideas Summit, focus of our cover story this issue, capped off another extremely successful experience for general managers of BoardRoom magazine’s Distinguished Clubs.

DAVE WHITE

“Thanks for pulling off the Summit. It was one of the best conferences I’ve been to in my 35plus years in the business! Union League made it extra special.” So professed Stephen Roper, general manager of the Meridian Hills Country Club in Indianapolis. The Distinguished Ideas Summit is the most exclusive gathering of general managers of the most prestigious and successful private clubs,” explained Keith Jarrett, president of BoardRoom’s Distinguished Clubs program. And this time ‘round, the prestigious Union League of Philadelphia guided by general manager, COO Jeff McFadden and Tim Muessle, general manager of the Philadelphia Cricket Club co-hosted the activities. The Summit is a gathering where the best clubs in the world, with the best general managers in the world, present some of the ideas they’ve instituted at their clubs to other Distinguished Clubs general managers. “So, every year, during our onsite surveys to clubs, we look at the most unique ideas that we haven’t seen before and then ask that GM to be a presenter at the Summit. The ideas are relevant and fresh and all the managers love it. “We believe the Distinguished Ideas Summit is one of the best benefits of earning and retaining Distinguished Clubs status,” Jarrett injected. For fine private clubs that operate at the highest standards, BoardRoom magazine’s Distinguished Clubs award program uses a club-specific rating system that recognizes the club, its management, and its staff. This is based on a proprietary criteria and evaluation process that distills and measures a club’s Member Experience. The rating system used by Distinguished Clubs is different from any that has come before, and with it, the private club industry now has the means to identify the top private clubs based on the most important aspect: Member Experience. To become a BoardRoom Distinguished Club, clubs must be nominated by the Distinguished Clubs nomination committee, which is followed by an extensive, onsite survey, conducted by a Distinguished Club executive.

BOARDROOM | NOVEMBER/DECEMBER 2016

Another story in by David Mackesey, based on his presentation to the Distinguished Ideas Summit, highlights how clubs can carve out their position. Mackesey and Hank Salvo, president of Diablo Country Club in Diablo, CA, with overlapping terms, received recognition as BoardRoom Distinguished Presidents for 2015. Mackesey, in his article suggests “meaning differentiation is the key to a healthy brand.” But differentiation is one of the most difficult consumer tasks facing any brand. President Mackesey outlines just how Diablo Country Club, its board and chief operating officer, Frank Cordeiro, by creating an accurate club history, have carved out a ‘meaningful brand position.’ It’s a most interesting piece by Mackesey, retired president of one of the world’s largest wine companies. Have a read…you’ll enjoy it! ■ ■ ■

Our BoardRoom magazine “Excellence in Achievement” Awards, the only private club industry awards that recognize the clubs’ business partners, are unveiled in this issue, as recipients receive their due recognition for their 2016 achievements. Congratulations to all and special acknowledgments to Don Williams, recipient of BoardRoom’s Lifetime Achievement Award for 2016; Phil Newman, who receives BoardRoom’s Award of Dedication and the Lynne LaFond DeLuca, as the Gary Player Educator of the Year for 2016. ■ ■ ■

This BoardRoom also features 2015’s final three top presidents including Frances Peck, President, Aberdeen Golf & Country Club, Boynton Beach, FL; Randy Sinnott, President, Jonathan Club, Los Angeles, CA, and Irwin Tepper, President, Wycliffe Country Club, Wellington, FL. This, of course, sets the stage for the selection and announcement of BoardRoom’s Top 2016 Private Club Presidents from around the world, in our January/February 2017 issue. We’ll have detailed information about our Distinguished Club President and 20 others selected for their outstanding efforts with their private clubs. B R Got a comment? Drop us a note: dave@boardroommag.com

Publisher/CEO

Co-Founder/CEO

John G. Fornaro

Editor/Co-Publisher

President

Dave White

Keith Jarrett

Assoc. Editor/VP Creative/Co-Publisher

Chief Analyst

Heather Arias de Cordoba

APCD Executive Director Bill Thomas

Frank Gore

Chief Information Officer Jeff Briggs

Editorial & Marketing Director Dee Kaplan

Executive Director Bill Thomas

Account Manager

Contact Information

Dina Alleluia-Carr

Contact Information

www.DistinguishedClubs.com (949) 376-8889

www.BoardRoomMagazine.com www.apcd.com (949) 376-8889 or (949) 365-6966

Subscriptions and Website Heather Arias de Cordoba www.BoardRoomMagazine.com (949) 365-6966

Featured Columnists Rick Coyne John G. Fornaro Bonnie J. Knutson

Richard Kopplin Nancy M. Levenburg Robyn Nordin Stowell

Gregg Patterson Bill Schwartz Dave White

Contributing Writers Heather Arias de Cordoba Chris Boettcher Bill Boothe Boyd Carr Lisa Carroll Ron Cichy Rita B. Craig Michael Crandal Ray Cronin Dave Doherty Todd Dufek John Embree

Larry Hirsh David W. Lacey Lynne LaFond DeLuca Melissa Low David Mackesey Greg Martin Macdonald Niven Steve Paris Whitney Reid Pennell Michael Phelps Steven Poe Ted Robinson Rosie Slocum

Jeff Spangler Michelle Tanzer Tanya Venegas Bruce R. Williams Frank Wolfe

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 267 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.

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CONTENTS | NOVEMBER/DECEMBER 2016

PUBLISHER’S PERSPECTIVE | 1 0

FOOD FOR THOUGHT | 1 2

PLIGHTS AND INSIGHTS | 1 4

SHOULD YOUR BOARD MEETINGS BE OPEN TO MEMBERS?

THE PATH TO PERFECTION

CHA-CHING! WHAT’S IN A NAME?

BY BILL SCHWARTZ

BY NANCY M. LEVENBURG

BY JOHN G. FORNARO

For most private clubs in this country, board meetings are closed-door affairs. The question is: Why are they closed? Should they remain closed? Are there any reasons why a club should handle board meetings any differently?

The perfect food cost is the cost required to provide exactly the amount of food required to meet the legitimate need during the period in question. The path to achieving the perfect food cost, leads to inventory management. Inventory management is to reduce the potential for variance – the use of more food than required.

My VSOP (Very Significant Other Person) and I were playing golf at a nearby private club. Much to our surprise, planted atop the 16th tee, we found a small sign that displayed a photo of the hole and the words “Topper Hill. We were curious, and the sign gave us pause to think… hm-m-m-m-m.

BOARDROOM BASICS & BEYOND | 1 6

MEMBERSHIP MUSINGS | 1 8

CASE STUDY | 4 2

THE NEW PRIVATE CLUB GOVERNANCE MODEL

WHAT THE EYE SEES, THE EYE BUYS

SUSTAINABLE RELATIONSHIPS & TECHNOLOGY

BY RICHARD KOPPLIN

“My only regret is that I didn’t have this information during the first six months of my term as president because our board meetings would have been much more productive.” And that’s how one club president summed up his experience from our recent Governance/Leadership Summits.

When we talk about a box of cereal, bottle of perfume or the revolutionary Dutch Boy paint can, the idea of packaging is obvious. The same is true when we think about take-out or delivery. What does the box look like? While that’s one way to look at packaging, in club marketing, it is more complex than that.

How does technology play a role in delivering what’s necessary to drive a collaborative understanding? You simply can’t get to all of these recommended practices without employing technology. Technology exists today to effectively enhance the club’s ability to address issues and respond to data, rather than conjecture.

EXECUTIVE COMMITTEE | 5 4

LEGAL COMMITTEE | 6 6

TRIBAL MAGIC | 9 0

SIX THINGS CLUBS CAN DO TO ATTRACT MILLENNIALS

CYBER HACKING IS SERIOUS BUSINESS

GET STICKY

BY ROBYN NORDIN STOWELL

BY GREGG PATTERSON

BY WHITNEY REID PENNELL

Clubs need to be educated, understand and be prepared about cyber security issues, as explained in Part 1 of this series. And they also need to “be insured and be diligent.” Understanding your current cyber issues is required as a best practice and it’s also an important step before the club applies for additional insurance coverage.

It’s tough getting people to join a club in these dog-eat-dog competitive times. But it’s even tougher to get the people who join to stay joined – paying dues, buying beers, playing golf, watching the tube and eating pizza. Managers want to create a “sticky” club experience that captures the newbies and keeps ‘em stuck, welded, hands tied and committed.

Millennials! That was the buzzword in every education session and talk among colleagues at a conference I attended recently. How can we attract Millennials to private clubs? The traditional private club model is changing. While change may feel a bit scary, it is actually an amazing opportunity for our industry.

BY BONNIE J. KNUTSON

BY RICK COYNE

SECTIONS TECHNICAL PERSPECTIVES . . . . . . . . . . . . . . . . . . . 70 Virtual Credit Cards Why Isn’t Every Club Using Them? By Bill Boothe CASE STUDY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Transition in Management – Board Perspective By Dan Farrell

DEPARTMENTS ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . 40 & 41 BoardRoom magazine’s Excellence in Achievement Awards

COURSE DESIGN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Advancing the Game is Key For the ASGCA By Greg Martin

CLUB FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Compensation and Benefits for Club Finance Professionals By Frank Wolfe and Tanya Venegas

INSIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Have The Right People On Your Team Bus! By Michael Crandal

ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . 56

ON THE FRONTLINES . . . . . . . . . . . . . . . . . . . . . . . . 76 Creative Meeting - Setting the Right Tone By Macdonald Niven

TENNIS COMMI TTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

INNOVATIVE IDEAS . . . . . . . . . . . . . . . . . . . . . . . . . 89 Champions Run | The Club at Ibis

BoardRoom’s 2015 Top Private Club Presidents By Dave White, editor

Tennis Participation Increases By John Embree

GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Superintendents’ Profession Has Come a Long Way

CLUB SERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 The State of the Industry And Breaking the Glass Ceiling… By Chris Boettcher

CULINARY AND CATERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 The Impact of the Details By Lynne LaFond Deluca

COMMITTEES HR COMMITTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Human Resources A Strategic Partner at a Country Club By David W. Lacey

WELLNESS COMMITTEE . . . . . . . . . . . . . . . . . . . . . . 58 Lead, Follow or Get Out of the Way Special to BoardRoom magazine

GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 81 Effective Course Agronomic Programs Require Science By Dave Doherty

FINANCE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . 64 Capital Investment In the Not-For-Profit, Member-Owned Private Club - Part II By Ray Cronin

GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 82 Membership Sales and Operations A Perfect Marriage By Jim Allison

MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . 46 Use Storytelling Formula to Clarify Your Club’s Brand Message By Michael Phelps

FINANCE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . 65 Pay Me Now or Pay Me Later By Larry Hirsh

GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 83 State of the Industry Better Days Ahead By Bruce R. Williams

MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . 48 Four Cornerstones of a Membership Plan Foundation By Ted Robinson and Steve Paris

HOUSE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 68 Engage Your Members By Incorporating These Top Culinary Trends By Lisa Carroll

GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 84 Grooming the Green Committee By Jeff Spangler

MEMBERSHIP COMMITTEE. . . . . . . . . . . . . . . . . . . 49 The Ebenezer Syndrome Kill ‘em with Kindness By Rosie Slocum

TECHNOLOGY COMMITTEE . . . . . . . . . . . . . . . . . . . 71 Top Cloud Questions Clubs Ask - Part IV By Boyd Carr

WINE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . 88 The Greatest Wine Drinking Generation Which One Is It? By Steven Poe

LEGISLATIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . 38 Misclassification, and Oh, Elections By Melissa Low

EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . 52 What Does It Take to Build a Winning Culture? By Rita B. Craig EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . 53 Directors Can Impact Social Experiences and Social Media By Ron Cichy

LEGAL COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Smoky Times Cannabis (Marijuana) at Private Clubs By Michelle Tanzer GREEN COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 78 How Much Do You Appreciate Your Locker Room Manager? By Todd Dufek

COVER FEATURE 2016 Distinguished Ideas Summit . . . . 20 By Dave White History, Branding and. . . . . . . . . . . . . . 26 Carving Out a Position By David Mackesey

PUBLISHER’S PERSPECTIVE | Apcd

Should Your Board Meetings Be Open to Members? For most private clubs in this country, board meetings are closed-door affairs. the question is: Why are they closed? Should they remain closed? Are there any reasons why a club should handle board meetings any differently?

JOHN G. FORNARO

For example, if board meetings are open to board members, committee chairs and senior paid management are regular attendees, are there times where board meetings should be open to anyone in the club who wishes to attend? Or should they be open all the time? Should or would a board open its meetings to greater scrutiny from the club’s members? Few people, i.e. club members are asked for their opinions on a regular basis, or in fact, few clubs even open their board meeting to outside participants. (i.e. members) and there are diverse opinions on what might happen.

The fact is, transparency and accountability seems to be the main forces behind more open governance. And often the major reason behind open meetings is not to have people to attend but to seemingly offer greater transparency, which might also have been seen as giving greater accountability to a club’s members. Although the argument is often made that, open board meetings provide a private club’s public with an opportunity to observe decisionmaking processes so that the public may gain an understanding of the rationale for plans and decisions. “We’ve seen a few traditional clubs (vs. club communities governed by sunshine laws) open their meetings to members with the exception of discussions on personnel and legal matters,” explained Kurt Kuebler of Kopplin Kuebler & Wallace, consultants in the private club industry. 10

BOARDROOM | NOVEMBER/DECEMBER 2016

“Most boards have stated in the past few years that they want and need to be more transparent to their members; few have taken this large a step. Those that have seem to limit input from spectators except during certain segments.” Although he sees benefits in certain circumstances, Gordon Welch, president of the Association of Private Club Directors, suggests, “If the club practices an open meeting policy then all meetings would be open unless the board is in executive session in which non-board members would leave the room. “I do not believe a club should practice open board meetings…open meetings are a bad idea. The board is elected and placed in office by the membership and their peers. The board has a fiduciary responsibility and board members are responsible for their actions. Having someone sit in on a regular board meeting will not help in my opinion, but I have been wrong before!” Welch exclaimed. “Open meetings make me think of ‘strategic intervention.’ If a club has an open meeting policy I suspect, there would be one or two individuals that had nothing better to do than attend meetings and stir the pot. The board is charged with the running of the club and the membership should allow them (the board) to do their job,” he stressed. Welch does however, see some benefits. “If a club is transferring ownership or has had major issues (financial, legal or hurricane/weather) it would be a good and ‘transparent’ communication,” Welch added. Tarun Kapoor of Kapoor & Kapoor Consultants believes “board meetings should be open unless there are confidential topics on the agenda. However, there needs to be protocols in place to attend. “Transparency and inclusion after all are fundamental requirements of private club (collaborative) governance.” He suggests “confidential topics such as executive compensation and/or performance warrant discretion and confidentiality.” See publiSher’S perSpective | 94

FOOD FOR THOUGHT |

The Path to Perfection ApproAching the perFect Food coSt - pArt iii the perfect food cost, as outline in part i of this series, is the cost required to provide exactly the amount of food required to meet the legitimate need during the period in question.

BILL SCHWARTZ

And, in Part II discussing the path to achieving, or at least getting closer to the perfect food cost, leads to inventory management in Part III. The main purpose of inventory management is to reduce the potential for variance – the use of more food than required. So here we focus on the things that cause variance – waste, theft, spoilage and over-portioning. Software can be very useful in identifying the specific items that are overused, but takes significant discipline with recipes, sales and yields in order to provide accurate results. In club foodservice environments, maintaining the recipes required by these systems, along with the fact these recipes look more like parts lists than cooking recipes requires expertise not generally found in foodservice staffs. Instead, the expertise is typically provided by companies that develop and implement this type of software. Usage studies, popularity studies, yield studies and manufacturing cost accounting principles combined with a strong understanding of foodservice practices are required to build these recipes. Without the reports provided by professionally implemented F&B systems to identify specific item variances, operators must rely on the disciplines described below to keep variances in general to a minimum. Even with a system, these disciplines are key to keeping things from becoming issues in the first place. Waste can be controlled by slowing down the preparation processes, with a focus on yield as opposed to production. For example, cleaning and trimming vegetables can create significant waste that adds up over time. By focusing on maximizing yield, waste can be kept down. Another way to reduce waste is to identify it as it happens. Using clear Lexan bins for trim waste and requiring managers to examine it before disposal keeps the focus on yield. Using flexible batch sizes based on demand and time of day is also helpful.

BOARDROOM | NOVEMBER/DECEMBER 2016

My mantra is “you can’t manage what you can’t see”, so I encourage the use of waste sheets for returns and discards at closing along with clear trash bags hung from wire frames as opposed to opaque trash cans. Spoilage can be identified in multiple ways, chief among them being waste sheets, frequent walk-in inventories (looking for poorly wrapped items or excess perishable inventory), and maintaining the lowest possible perishable item inventory levels. This plays back to relying less on par levels and more on better forecasting, along with a willingness to split cases and pay slightly more for produce and highly-perishable items. A “fresh is best” policy promoted to members alleviates the concern about running out. Over-portioning accounts for 30-50 percent of all variance. This can be avoided to some extent by better recipe education, close monitoring of portions coming off the line, digital scales and proper scoop and portioning utensil sizes that “max out” at the correct portion. Finally, theft can be reduced by limiting access to expensive proteins, locked back doors, trash bin monitoring and kitchen, storage area and parking lot cameras. Key item tracking – counting key items at the beginning and end of shifts and comparing usage to ideal use based on portion, yield and sales keeps theft control even tighter. This particular function is well-suited to F&B software. Combining and maintaining these disciplines will result in lower variances and lower food costs. The next steps on the path to perfection deal with culinary processes and tricks, followed by report analysis and action planning. Stay tuned! b r 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.

PLIGHTS & INSIGHTS |

Cha-ching! What’s in a Name? not long ago, my vSop (very Significant other person) and i were playing golf at a nearby private club. Much to our surprise, planted atop the 16th tee – an elevated tee on a very long and difficult par 4 – we found a small sign that displayed a photo of the hole and the words “topper hill.”

NANCY M. LEVENBURG

What could this mean, we wondered. Much like Robert Mondavi’s Sauvignon blanc, or Fume Blanc, was “Topper Hill” a clever re-arrangement of “Hill Topper” (since the tee was atop a big hill)? Or, could the 16th hole be the favorite hole (or tee) of a Mr. or Mrs. Topper – a wealthy and magnanimous member family? Perhaps the hole had been named in honor of them? We were curious, and the “Topper Hill” sign gave us pause to think… hm-m-m-m-m. Were some lucrative revenue-earning opportunities lurking around the bend? Although private clubs are replete with signs, plaques and photos offering tribute to their members (e.g., past presidents, tournament winners, club champions, hole-in-one), we’ve rarely seen signs or plaques at private clubs that recognize individual members for their monetary donations. Are private clubs missing out on a potential money-making opportunity? Cha-ching! Given numerous cash-strapped private clubs across the country, could naming rights in exchange for cash donations become a new trend? YMCAs often give naming rights to individual or corporate donors who have made a significant donation to a Y. For example, Green Bay’s YMCA is known as the Ferguson Family YMCA. Or, Pittsburgh’s YMCA is known as the PNC YMCA. So, why couldn’t country clubs do the same? According to Pablo Eisenberg in a National Public Radio (NPR) segment broadcast last November (“Give a Donation, Ask for Naming Rights”), “There are very few anonymous donors anymore, and there are few that are satisfied to give a big donation and not have that object of the donation named after them.” In fact, according to Eisenberg, institutions are not coming to think of naming rights as an asset – “something they can offer as an enticement.”

BOARDROOM | NOVEMBER/DECEMBER 2016

So, if this is true – and a potential new source of revenue – to what might naming rights at the private club be applied… and marketed? indoorS Indoor naming opportunities are almost endless. In fact, with some imagination, couldn’t nearly anything inside the clubhouse – excluding the restrooms and business office – offer a “saleable” naming opportunity? Couldn’t we start with the clubhouse itself? From there, naming rights could be offered for: • Men’s and women’s locker rooms • Casual or fine dining rooms • Members’ lounge • Private meeting room space • Fitness center • Grand piano outdoorS Naming opportunities might be offered on the club’s grounds for everything from each of the 18 holes on the golf course to the halfway house, pool area, tennis courts, platform tennis courts (and warming house), patio, and so on. And, on each of the golf course’s 18 holes, don’t further naming opportunities exist? For example, as with the club we visited, the tee area? Or the wood/metal benches placed by the tee? Specific trees or flower beds/gardens along the hole? Of course, if the club doesn’t have one already, it would want to develop a naming rights policy. An example of one such policy for the Greater Dayton YMCA is available at http://www.ymcaonline.org. According to Konigsberg and Ryder-Howe in a Town & Country article, only one percent of donations today are anonymous. The rest come with strings attached. So, why not consider attaching those strings to a pot of gold? b r Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She has assisted over 200 organizations with strategic planning, marketing strategy, and improving operations. She is the president of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 331-7475.

BOARDROOM BASICS & BEYOND |

Engage and Educate: the neW privAte club governAnce Model “My only regret is that i didn’t have this information during the first six months of my term as president because our board meetings would have been much more productive.”

RICHARD KOPPLIN

And that’s how one club president summed up his experience from our recent Governance/Leadership Summits, which we’ve been hosting along with the Club Managers Association of America. The groundbreaking concept in education provides an opportunity for club general managers/ chief executives to get together with their club presidents or/or board members for a full day of education focused on governance and leadership. These initial summits held at Baltursrol Golf Club in Springfield, New Jersey, Bent Tree Country Club in Dallas, Texas and The Olympic Club in San Francisco, California, have enjoyed outstanding reviews. “In my corporate life I have attended a number of business seminars but the information and the quality of this presentation is the best I have ever seen,” remarked another club president. And a club president who had never attended any type of CMAA program said, “If this is the level of education being provided by CMAA to our club general manager, I am very impressed. I can tell you that our club board will be even more supportive of his attendance at these events in the future and I will also plan on attending when invited.” The commitment that Jeff Morgan, CMAA’s CEO and Dr. Jason Koenigsfeld, CMAA senior vice president have made to this concept will continue and Summit sites have already been identified for 2017 with the first scheduled for the Atlanta Athletic Club on January 19th. “The long term sustainability of CMAA is tied directly not only to the education of our member managers but also to providing Club Presidents and Board members specific governance strategies that they can adapt to their specific clubs.

BOARDROOM | NOVEMBER/DECEMBER 2016

We see the Governance/Leadership Summits as the ideal venue for educating club boards on best practices in the private club industry,” said Morgan. “The enlightened general manager knows that this type of program is the future of club world’s education and the top executives in private clubs will continue to provide their boards with the very best in cutting edge education,” explained Kurt Kuebler, one of the Summit’s presenters. “While a few managers had said they were not comfortable sharing so much information with ‘their bosses,’ they are in the distinct minority. The most successful general managers recognize the value of board education,” Kuebler added. A panel discussion, led by Tom Wallace, with three general manager and their respective club presidents focused on some of the challenging issues facing clubs and the strategies they have engaged to solve the issues, is generally a highlight of the summits. CMAA’s Morgan brings a unique perspective to the club governance model and discusses the evolution of club management as he presents a compelling program on why clubs have to evolve. He and Wallace present an overview of some the trends happening in the private club industry and how these trends are impacting the leadership of the future. Koenigsfeld completes the program with a review of the Lumina profiles of all the attendees and discusses how this assessment tool can dramatically improve understanding and communication among the club governance leaders. One fact is certain. General manager/chief executives, club presidents and board members enjoy a cooperative day of sharing best practices boding well for the future of governance education in the private club industry. b r Dick Kopplin is a partner in Kopplin Kuebler& Wallace, an executive recruiting firm providing services to the private club industry. The company has offices in Scottsdale, Jupiter, Atlanta, Denver, Cleveland, Washington D.C. and Naples. Dick can be contacted at (480) 443-9102 or at www.kopplinandkuebler.com

MEMBERSHIP MUSINGS |

What the Eye Sees, the Eye Buys When we talk about a box of cereal, bottle of perfume or the revolutionary dutch boy paint can, the idea of packaging is obvious.

BONNIE J. KNUTSON

The same is true when we think about takeout or delivery. What does the box look like? While that’s one way to look at packaging, in club marketing, it is more complex than that. There are actually four levels of packaging that a club can use to help position its products, services, programs, and brand image. The first is the actual container itself. For Victoria Secret it is the notable pink and white striped bag. For L’eggs hosiery, it is the egg shaped package. For Burger King it might be the Styrofoam box in which the Whopper comes.

In a club, it is the actual china, flatware, and presentation of the food and garnishes. It is the wrappings used in the pro shop and the amenities in the locker rooms. It is also the “doggiebag” in which leftovers are sent home with full members. The second level is what we think of as the decor and ambiance of the place. It includes color, texture, lighting, and sound. Also, furniture design and any theme used. 18

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Although these are elements of the club’s product, it is how they are designed, arranged, and used that helps produce a warm or cool feeling; one that is open or cozy; even formal or casual. The third level includes all the symbols a club employs to reinforce its positioning. The logo and signage, how the building looks, its landscaping, and surrounding neighborhood. Add to these the feel and look of its advertising and social media, where you place them, and the persona of you, your management team, and your other employees. The final level is the one that provides the club with a unique opportunity to increase the member’s experience by giving him or her a WOW event. Many times, packaging is left to chance. Too many times, the role of packaging receives too little attention in the marketing mix. But members live in a very visual culture. They have grown up with TV, glossy magazines, alluring brochures and a deluge of web sites. So remember this rule of marketing: The eye buys what the eye sees. Notice I didn’t use the word, “orders.” I used the word, “buys.” This marketing tenet may be somewhat of an exaggeration, but it is also an understatement. Shrewd managers know that members can be influenced to purchase more if it is packaged to attract attention and present itself outside the usual. Retailers will often display a complete clothing ensemble on a manikin. While a customer may have gone into the store with the plan to just to buy a suit, seeing the total clothing package influences him to also purchase the shirt, shoes and accessories for the total look. An automobile dealer merchandises vehicles in his showroom seasonally and by holiday. He opens the trunk or hatch and, in summer, may display water skies, inflatable rings, fishing gear, and picnic baskets. In the fall, he may turn to hunting equipment or, the winter he might use items such as snowboards, boots, or a Christmas tree, and for the

spring, gardening equipment, flats of flowers, and bicycles help package the experience. And in each case, he supplements the merchandising with suitable background music and aromas. Think about innovative ways you can use this tool to package various club products. The dining room offers a good starting point. For instance, you may have a London Broil on your dinner menu. Instead of a just serving it on a plate in a traditional manner, why not insert one of those little British flags in the meat, then have the server don a Bowler, place a Union Jack tea towel over his or her arm, hold the platter high, and place it before the member with great ceremony? I guarantee it will produce a memorable experience for the member and will probably inspire others in the dining room to order the London Broil too. Consider how your bar manager might add panache to a drink – beyond the uninspiring fruit garnishes and little umbrellas. They’ve been over used and are lackluster. Don Smith, restaurateur extraordinaire (known throughout the hospitality industry as Coach, Smith once owned a highly successful restaurant, Chateau Louise, outside of Chicago, Illinois.), used to package an uneventful glass of bourbon into a spectacular drink he called the Bridget Bardot. His bar manager would simply place a small glass of bourbon inside a brandy snifter. He would then place a small amount of dry ice around the glass in the snifter. At the time of service, the server would add a few drops of water, producing a cloud-like fog. The drink would be placed on a serving tray, and like the London Broil, carried high in the air through the dining room and placed before the guest with grand flair. Another memorable member moment through packaging that fostered additional purchases by other diners. Finally, imagine how lowly ice cream might be repackaged, much like Walt’s Ice Cream store did in my home town. Walt sold “rainbow” cones in junior and senior sizes. His ice cream was like most other stores in the area – no better or no worse. But it was what he did with the ice cream that made the packaging special. To make the rainbow cone, he would layer five (junior size) or seven (senior size) flavors of ice cream on a regular cone using a type of spatula scoop. This special scoop would produce a layer of ice cream about four inches long, about three-quarters of an inch thick, and the width of the cone. When one flavor was put in, the next was laid along its side, extending a little further out of the cone. This would continue until all the flavors were layered, resulting in a rainbow of color and flavor bands. People would drive an hour just to get a rainbow cone. In each of these three examples, packaging was used to boost the experience, increase the perceived value, and enhance the brand image. An existing product was simply

Think about innovative ways you can package various club products. The dining room offers a good starting point. For instance, you may have a London Broil on your dinner menu. Instead of a just serving it on a plate in a traditional manner, why not insert one of those little British flags in the meat, then have the server don a Bowler, place a Union Jack tea towel over his or her arm, hold the platter high, and place it before the member with great ceremony? repackaged – i.e. tweaked. And an added bonus was that in every case – London Broil, Bridget Bardot, and the rainbow cone – buyers were willing to pay a price premium for the experience. Other ways to tweak packaging in the dining room include flambé, the sizzle of a steak on a platter as it comes out of the kitchen, the aroma of freshly baking bread or pastry, and even portion size. In an era of public attention to the issues of obesity, however, you have to be very careful if you are serving large sizes as a packaging tool. In a case where a particularly large portion could be served – i.e. a one or two-pound hamburger – it could be repackaged for a table rather than a person and, again, served in stimulating fashion. So put your creative juices to work and find those products and services that you can repackage to increase member delight and, in turn, club revenues. Your bottom line will thank you! b r 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

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COVER STORY

2016

Distinguished Ideas Summit Best of the Best BY DAVE WHITE Page 20 - 21 Photos by: Laura Ladendorf P a g e 2 2 , 24, 32 and 34 Photos by: Philip Gabriel Photography

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hanks for pulling off the Summit. It was one of the best conferences I’ve been to in my 35-plus years in the business! Union League made it extra special.” And that comment from Stephen Roper, general manager of the Meridian Hills Country Club in Indianapolis is typical of the kudos following the 2016 Distinguished Ideas Summit held recently at the Union League of Philadelphia. “I enjoyed the format very much as the presenters were club managers who shared their successful programs and experiences with their peers. I picked up many beneficial ideas, which is the purpose of these conferences. “The experience of networking with managers at the top of their field and enjoying the high-quality level of operations and facilities like the Union League and the Philadelphia Cricket Club,” Roper added.

BoardRoom’s Distinguished Clubs are truly a special grouping of private clubs…exceptional clubs based on their extraordinary delivery of a first-class Member Experience to each and every one of their members,” explained Keith Jarrett, president of BoardRoom’s Distinguished Clubs program. “The Distinguished Ideas Summit is the most exclusive gathering of general managers of these most prestigious and successful private clubs. This private invitation-only event has been created specifically for, and is attended by, only fellow general managers of currently-awarded Distinguished Clubs,” Jarrett added. Speakers for each summit are pre-selected general managers telling how they create great Member Experiences with unique ideas and proven strategies at their clubs. Jeff McFadden, general manager and COO and his staff at the prestigious Union League of Philadelphia have received many compliments by the participating general managers for their exceptional work as hosts for the Summit.

The Union League is an outstanding Distinguished Club, one of the country’s most historic clubs, founded in 1862, and built to support the Union and policies of Abraham Lincoln. The Philadelphia Cricket Club and general manager Tim Muessle, co-hosted some of the activities. “Jeff and Tim were gracious hosts, always looking out to accommodate their peers,” Roper opined. “My professional experience includes working in three different 5-star resort hotel facilities and the Union League of Philadelphia exceeds all standard metrics in amenities, staff and cleanliness,” expressed Craig Martin, general manager of St. Andrews Country Club in Boca Raton, FL. “For example, the staff greeted me by name at every opportunity, offered a warm welcome and escorted me to destinations on property to ensure I wasn’t lost wandering. “It was another outstanding event put on by BoardRoom’s Distinguished Clubs team….and a great opportunity to share best practices and learn about new and innovative operational techniques and programming that work.

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“Overall the entire event is inspiring and challenges each one of us to continue elevating our member experience,” Martin added. “The membership and professional staff at St. Andrews Country Club benefit from the new, fresh ideas other clubs have implemented and fine-tuned. Our professional staff meets upon my return to discuss the feasibility of integrating some, if not all, of the programs at our club. I find my participation motivates me by being around other leaders. It reenergizes my commitment to my personal and professional objectives which helps me to be a better leader to my team,” Martin explained. “We realize what we’ve created by showcasing the most outstanding private clubs across the country. It’s a model with a message that can help clubs grow and enhance their member experience. It’s quick and it’s a meaningful learning environment,” stressed John Fornaro, CEO of BoardRoom magazine and one of the innovators behind BoardRoom’s Distinguished Clubs program. “When we were thinking of developing the concept of the Distinguished Ideas Summit, from a speaker’s perspective, we started with the usual way of thinking…then we paused and thought…these are the best clubs in the world with the best GMs in the world and they have the best ideas that they implement at their clubs, why not have them present member experience ideas to themselves? And the format was born,” explained Jarrett.

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“So every year, during our onsite surveys to clubs, we look at the most unique ideas that we’ve haven’t seen before and then ask that GM to be a presenter at the Summit. The ideas are relevant and fresh and all the managers love it. “We believe the Distinguished Ideas Summit is one of the best benefits of earning and retaining Distinguished Clubs status,” Jarrett injected. “Distinguished Ideas Summit is not just an event, but also a different way of learning about what works for private clubs. The Distinguished Clubs award program aims to vitalize and preserve private clubs by fostering a ceaseless drive to improve the Member Experience offered by private clubs throughout the world,” added Fornaro. “Our Distinguished Ideas Summit is not just about being recognized (for a great member experience), but it also recognized the fact that other clubs take on these proven ideas, to enhance their own member experience for their own members. We are working with the most outstanding clubs in the country who want to learn and continually enhance their members’ experience,” Jarrett commented. And there are plenty of other general managers who agree. Frank Cordeiro, COO, Diablo Country Club, Diablo, CA. The Distinguished Ideas Summit is unlike any other industry event. John Fornaro and the extraordinary DC team should be applauded for conceptualizing ➤

and delivering this one-of-a-kind opportunity to transfer knowledge, and to interact with leaders from the best and most innovative clubs in our industry. I’m grateful for the opportunity to participate and I can’t wait for next year! The Distinguished Ideas Summit is always a highlight for the year, but this year’s venue, The Union League of Philadelphia, was exceptional in every way. Jeff McFadden and his team at the League have much to be proud of. The hospitality, service and overall culinary experience was world-class and inspiring. A simple thank you and expression of gratitude doesn’t properly acknowledge or do justice to the effort and quality we had the privilege of enjoying. We owe you Jeff! I arrive each year at the Distinguished Ideas Summit enthused and prepared to learn and share ideas. Without exception, I’ve come away from each experience inspired and enriched with new and innovative ideas to take back to my club and share with my board and team! Kevin Given, GM, Quail Valley Golf Club, Vero Beach, FL Excellent and informative speakers and topic matter. It’s a great environment to interact with your peers and bounce questions and ideas off one another to gain a better understanding of what is happening in the marketplace. I thought the in-town and out-of-town host club concept was very well done and thought out – two unique perspec-

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tives. Union League was a fantastic host site – I The dining options and historical significance of the club was worth the visit. Each team member that I interacted with was informative and very engaging. I feel that it opens and broadens your perspective on things that are occurring in the industry that you may be isolated from at times but most importantly, I believe that the information being provided is timely to conditions that exist today. Attendance also allows you to gain a better understanding of what is happening in other parts of the country at clubs with demographic shifts, new innovative ideas that are successful and addressing challenging problems that our clubs are encountering Ben Hay, GM, Crane Creek Country Club, Boise, ID What a great few days. I felt so privileged to be a part of the group. Thank you for the opportunity and introducing me to some amazing people. I am very excited about the survey and the future for Crane Creek. Doug Shifflett, GM, Governors Club, Chapel Hill, NC An outstanding Summit. This was one of the best events I have attended. The education, networking, and venue was excellent! It was a great honor to be able to attend. I look forward to next year’s event!

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Mike Stanton, GM/COO, San Luis Obispo Country Club, CA From the moment I arrived at the Union League until departure I was treated like a member. The Summit format allowed a lot of networking time, with some of the best and brightest in our industry is invaluable, and it’s often when we learn the most. Quality time with our peers, especially in an environment like the Union League club is invaluable. If we can take just one idea back to our club and build a successful program or event our club is better for it. If we come back with more than one great idea…bonus time. I am a fan of the format of having many different short educations. The quick pace keeps your attention on track and its always interesting to hear a lot of good ideas and some great ones. This format keeps participants engaged and provides lots of conversations during networking times. The Union

League was an incredible place to visit and I hope to return one day. The team that Jeff McFadden has built understands hospitality at the deepest level!! When I was looking for the MIs en place dinner I was directed to walk through the kitchen, which I thought strange at first, and then I saw the kitchen…wow! However, what struck me was that every staff member looked up from whatever they were doing and said good evening with a genuine smile on their face. I couldn’t have felt more “at home.” Jeff is the consummate host!! The hospitality he and his team showed us at the Union League was world class. Jeff is also very friendly and approachable and like most of our peers all too happy to share any of the ideas that have worked for him. John Fornaro (along with Keith Jarrett and the rest of the team) should be congratulated for putting the summit together every year. John’s passion for our industry is evi-

History, Branding and Carving Out a Position Meaningful differentiation is the key to a healthy brand. Finding it, now that’s the hard part. in the consumer marketplace we see how hard it is every day.

DAVID MACKESEY

Words are used like “unsurpassed”, “new and improved”, “99 and 44/100ths percent pure.” Pure what? Differentiation is one of the most difficult of consumer tasks facing any brand. The remarkably good news for the club industry is the fact every club in existence has a built-in opportunity to uniquely differentiate itself as a brand. The who, what, where, when and why of clubs is without exception a story that can be told well. The successes are interesting, the failures, even more interesting. Another advantage for clubs: much of this differentiation has already happened, so it requires no invested capital, but like anything meaningful, it requires work. Like many clubs, Diablo Country Club has a rich history, yet, over the years, telling the story has been more myth and legend. While the stories were interesting, much of it was simply inaccurate, and therefore discounted…often dismissed as a mile wide, an inch thick. This created uncertainty and often, controversy. Which then led to division, confusion and stalemates. Our history was becoming a liability. At one particular stalemate, the question, “Who designed our golf course?” became a heated debate.

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For years, our scorecards celebrated Jack Neville, the gentleman who is credited with the iconic Pebble Beach Golf Links layout, as our designer. Yet no one could say where this information came from, and not one shred of evidence existed to support the claim. Urban legend? The membership was divided, and rightfully so. This question deserved a good answer, and that is when the meaningful work began. Over a span of three years, an accurate and in depth research project was undertaken. The only goal: to create an accurate Diablo history. While the answer of who designed our golf course was one of the last and most difficult mysteries solved, the process uncovered a rich history, relevant positioning, accuracy and ultimately, a meaningful basis for a differentiated brand. the MyStery As it turns out, the mystery of who designed our course was meant to be a secret, a conspiracy. And these are the best kind of stories. Early in 1916, the formation of the PGA of America was a raging controversy. The current authority, the USGA, was opposed to this union of professionals, and those who supported its formation were punished. A. W. Tillinghast was supportive of the PGA, and quickly stripped of his amateur status by the USGA for violating a newly created rule – designing golf courses in exchange for money.

dent and much appreciated. Tim Muessle and the Philadelphia Cricket Club did an outstanding job hosting our group. Tim was happy to talk about the PCC and each of his staff members I encountered was also more than happy to help in any way possible. The summit for me is a can’t miss event! It packs a lot into a relatively short time. Again, the exchange of information both in a formal and a non-formal setting is invaluable to us as managers. To be able to participate in this and do it in a setting like the Union League club as well as the Philadelphia Cricket Club is priceless. Can’t wait for next year!!

Rob Tench, GM/COO, Orchid Island Golf & Beach Club, Orchid, FL I would like to thank you, John and Keith for hosting another great event. The information shared was great and the venue terrific. I look forward to next year’s event.

Burt Ward, GM, Century Country Club, Purchase, NY I always pick up new ideas. Sometimes it is stealing an idea from the venues visited. There were a few of those.

Jerry Thirion, GM, Bay Colony Golf Club, Naples, FL Fantastic performance as usual. Everything you do is over the top and you have us all spoiled. Can’t wait until 2017.

Tom Hurley, GM, Fiddler’s Elbow Country Club, NJ It’s a privilege to be recognized as a Distinguished Club and associated with such a great pool of professionals. Being surrounded by such a notable group is a great opportunity to grow and improve. I would attend anything you present in a heartbeat! Terrific job, please pass on my gratitude. I acquired 2-3 ideas and will make good use of them.

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Jack Neville, a highly-successful 23-year-old amateur golfer designed the original layout at Diablo, and was supportive of the formation of the PGA. He did not want the same fate as Tillinghast. The conspiracy was formulated to keep Jack’s design work at Diablo a closely guarded secret… off the radar of a watchful USGA. It worked. Jack retained his amateur status, was a member of the victorious 1923 Walker Cup team, and a five time California Amateur Champion. By 1919, the USGA/PGA controversy subsided, and Jack’s completed design work at Pebble Beach was widely celebrated. Why it iS relevAnt The Neville work at Diablo became a celebrated differentiator for the club, yet a number of members still discounted history as simply a nice story on a wall. The answer to the important question, “Why spend all this time on history?” became clearer: “The Farther back you can look, the farther forward you are likely to see”– Sir Winston Churchill Our history became one of our most valuable forward planning tools. Every board is charged with the responsibility of shepherding the club into an unknown future. The range of issues that arise in the boardroom seem endless. A brand position on a foundation of history allows the club to know the difference between things that simply don’t change, because they represent what we are, and things that may change, allowing the board to more sharply focus on a narrower range of issues. coMMon club underpinningS 1) A sense of place. Every club has this, and by definition, it is unique. The story of why your club’s “place” was selected, how it came true, and its ongoing relationship with time and inevitable change is worth telling. As a brand, this story is proprietary and a unique club asset. 2) Leadership to create the club. Without it, the club simply would not have been born. Uncover the process of the club’s beginnings, the risks, the naysayers, the obstructionists, then tell the story of how all of this was overcome. continued on bottom of page 28 ➤ NOVEMBER/DECEMBER 2016 | BOARDROOM

Hats off to all those who had anything to do with making the summit such a professional and successful event. The highlight of my year! Scott Domnie, GM, Fremont Hills Country Club, Los Altos Hills, CA Tremendous thanks to you for putting on a great summit. We enjoyed the 2016 Distinguished Ideas Summit. diStinguiShed clubS progrAM BoardRoom magazine’s Distinguished Clubs award program selects the country’s finest private clubs that operate at the highest standards, using a club-specific rating system that recognizes the club, its management, and its staff based on a proprietary criteria and evaluation process that distills and measures a club’s Member Experience. The rating system the Distinguished Clubs program uses is different from any that has come before, and with it, the private club industry now has the means to identify the top private clubs based on the most important aspect: Member Experience. To qualify as a BoardRoom Distinguished Club, a club must be nominated by the Distinguished Clubs’ nomination committee. 3) Staying relevant. Clubs only survive if they have remained relevant over time. Your club exists, therefore relevance exists. Define it, and celebrate it. 4) The best of members. Like all things in the world, club members fall into the standard bell curve, and those on the far

“BoardRoom’s Distinguished Clubs has a well-earned reputation of tremendous credibility from the comprehensive rating system in place for evaluating the Member Experience at clubs across the country,” enthused St. Andrews’ GM Craig Martin. “John’s passion for providing many new and exciting programs has inspired all of us to raise the bar and improve our facilities and amenities. “The Distinguished Clubs rating system is far and above any other designation/evaluation program currently in place in the club industry. Critical to the evaluation process is the full day on-site visit where Keith Jarrett meets individually with each of our key department heads. At St. Andrews we learn firsthand what we are doing to consistently engage our members and improve their experience every day,” Martin explained. Planning had already started for the Distinguished Ideas Summit in 2017. Stay tuned for more details. Distinguished Ideas Summit represents an additional benefit for BoardRoom Distinguished Clubs…and for sure, another reason to become a BoardRoom Distinguished Club. b r

right of the curve love the club, and would do anything to help. Enlist these members into the process, through their efforts, volunteerism, sponsorship and leadership. 5) Perceived value. Clubs exist because of demonstrable value, things like a clubhouse, amenities and land. These assets rightfully employ a great deal of capital, management resources and care. Brands on the other hand, thrive on perceived value. This requires little capital, but demands the best of the club. Once perceived value is determined to be relevant, accurate and unique to your club, the leverage grows over time. Doing this right once can add generations of value. A liAbility to An ASSet Over the past five years, the Diablo Country Club’s drive towards creating an accurate history resulted in the club carving out a meaningful brand position with relevance for the members, the local community and with both national and international golf communities. While our best work is certainly still ahead of us, having this one in the “done well” column provides clarity and vision for future generations. b r This article by David Mackesey is based on a presentation at the recent Distinguished Ideas Summit held recently in Philadelphia, PA. David Mackesey is the retired president of one of the world’s largest wine companies. He has served as a director of Diablo Country Club in Diablo, CA and as president from 2012-2014. He currently is the club historian for Diablo Country Club and the overseas historian for the Carnoustie Golf Club. Mackesey and fellow president Hank Salvo, with overlapping terms, were also selected BoardRoom’s Distinguished Club Presidents for 2015.

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Leaders in F&B Innovation

MICHAEL S. WHEELER, CCE, CCM

MATT MCKINNEY, CCM

JAY DIPIETRO, CCM

ROBERT E. JONES, CCM, CCE

MICHAEL G. LEEMHUIS, CCM, CCE, PGA

COO and General Manager Cherokee Town & Country Club Atlanta, GA

COO and General Manager Capital City Club Atlanta, GA

President and General Manager Boca West Country Club Boca Raton, FL

COO and General Manager Desert Mountain Club Scottsdale, AZ

President Ocean Reef Club Key Largo, FL

CRAIG L. LOPES

BRAD JENCKS

NICK SIDORAKIS, CCM

PHIL KIESTER, CCM

BRETT MORRIS

General Manager The Moorings Yacht & Country Club Vero Beach, FL

General Manager Waialae Country Club Honolulu, HI

COO and General Manager Southern Hills Country Club Tulsa, OK

General Manager The Country Club of Virginia Richmond, VA

COO and General Manager Polo Club of Boca Raton Boca Raton, FL

Innovation is a key component of leadership. These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together. The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.

Find out more. Call us at 800-553-2438. Or just ask them!

FOOD AND BEVERAGE MANAGEMENT SYSTEM

PROCUREMENT • INVENTORY • CULINARY CONTROL

http://www.foodtrak.com

2016 Distinguished Ideas Summit

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2016 Distinguished Ideas Summit

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EXPERIENCE. DEDICATION. INTEGRITY. OUR NAME SAYS IT ALL.

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Kurt Kuebler

tom wallace

lisa carroll

jacK sullivan

armen suny

SPECIALIZING IN GM/COO, DIRECTOR OF EXECUTIVE CHEF, COMMUNITY ASSOCIATION

GOLF, GOLF COURSE SUPERINTENDENT, MANAGER, ASSISTANT GENERAL MANAGER,

AND CLUBHOUSE MANAGER SEARCHES AS WELL AS STRATEGIC PLANNING AND CONSULTING SERVICES FOR PRIVATE, RESORT AND DEVELOPER OWNED PROPERTIES.

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EXECUTIVE SEARCH FIRM OF THE YEAR NINTH YEAR IN A ROW

the culinary leadership summit | march 4 - 5, 2017 reserve your space now | www.KKandw.com/culinaryleadership.pdf

HR COMMITTEE

Human Resources A Strategic Partner at a Country Club Human resources no longer remain the ugly stepsister. Today, it’s today an influential member of the country club management family. What has changed and why?

DAVID W. LACEY

At a country club, human resources often have been viewed solely as an administrative function, which processed payroll and educated employees about their benefit options. That work must be done accurately and completely. It is even necessary work. But today HR is a strategic partner with the GM and their management team. What can a strategic partner do? Here are some examples. A strategic partner replaces paper-based with technology-based systems. Evidence of the decline of paperbased is especially visible in HR platforms that handle payroll, track time and attendance, manage overtime usage, establish and monitor schedules for conducting reviews and advise terminated employees about COBRA among many more capabilities. Payroll companies, like ADP and Paychex, offer robust HR platforms to deliver all these services for a country club. All of these technology-based applications accelerate efficiency in HR by eliminating Excel spreadsheets or other paper-based applications. The heightened level of efficiency makes it possible for the HR professional to make more significant contributions to the GM and the management team. A truly valuable strategic partner in HR will deliver professional actions that include: 1) designing and implementing plans to attract and retain key professionals; 2) ensuring targeted programs for professional development and management education are in place; 3) coaching members of the professional staff to increase their overall effectiveness; and 4) conducting competitive market surveys to ensure that compensation is on target with peer country clubs. These four focus areas ensure that HR is a valuable and influential team member. At distinguished clubs like Augusta National and Congressional their HR professionals and

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operating executives are using either the Predictive Index (PI) or a similar survey instrument to strengthen their departmental teamwork or as part of their new hire selection process. Use of an instrument like the PI was unheard of at country clubs 10 years ago. Today its use is common and leads to very good results in selection or team building. Finally, the board’s focus on compliance marks another development that has influenced the emergence of HR in an important strategic role. The board is eager to know that all of the club’s policies and practices are fully compliant with applicable Federal and state employment statutes. The HR partner is now conducting an audit or review to ensure compliance for the board. This pre-emptive action by HR ensures that the club is fully prepared for an audit by a state or federal agency; and matches the compliance focus of the Board. At distinguished clubs, HR is an influential partner with the GM and their team and with the board too. Therefore, HR is now firmly on the “main highway” of country club management. HR is no longer on the service road! The professional transition from “service road” to “main highway” for HR means that the function is helping management teams become more effective and efficient. And HR is receiving much needed recognition for its contribution to the team’s effectiveness, both from the GM and the board. Based on the examples of HR as a strategic partner, you can assess the status of HR at your club. BR David W. Lacey is managing director, HR consulting services, Hirshorn Boothby. He recently completed his second board term at The Philadelphia Cricket Club. He can be reached via email: dlacey@hirshorn.com

LEGISLATIVE COMMITTEE

Misclassification, and Oh, Elections There are a number of pressing issues impacting clubs this fall, and their effects will continue into 2017. These issues will significantly impact clubs, golf courses and the entire small business community. MELISSA LOW

OVERTIME CHANGES: EFFECTIVE DECEMBER 1 Released in May, the final overtime rule will become effective and enforceable on December 1, 2016. To qualify as an employee exempt from overtime, an employee must be paid on a salary basis, meet the primary duties test based on one of the three Executive, Administrative or Professional exemptions remain intact and exceed the salary threshold. The final rule increased the salary threshold at $47,476 annually ($913 weekly) for a full-time salaried worker, which is double the existing threshold. This amount is approximately $3,000 less than the original proposal, based on the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South. In addition to the increase, the rule establishes an automatic update of the salary threshold every three years to maintain the 40th percentile (or 90th for HCEs). The first update is slated for January 1, 2020. Under the new rule, employers may now use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level. These amounts must be paid at least quarterly. Clubs and all employers need to be prepared for these changes. Legislation, HR 5813 - The Overtime Reform and Enhancement Act, was introduced in the House of Representatives in July. The legislation would not alter the final rule but instead institute a more reasonable phasedin approach to the increase to the exempt salary threshold. Beginning in December, the salary threshold would increase by 50 percent and future increases would phase in the remainder over three years. Unfortunately, the current Administration has already indicated their inclination to veto the measure if it comes to the President’s desk.

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EMPLOYEE MISCLASSIFICATION( In 2015, long before the Wage and Hour Division Department of Labor (DOL) finalized the new overtime rules, it issued new guidance on the misclassification of workers focusing on the application of the Fair Labor Standards Act (FLSA) and the multi-factor “economic realities” test. This test explores whether an employee is economically dependent upon the employer through six specific questions: 1. Is the work an integral part of the employer’s business? 2. Does the worker’s managerial skill affect the worker’s opportunity for profit or loss? 3. How does the worker’s relative investment compare to the employer’s investment? 4. Does the work performed require special skill and initiative? 5. Is the relationship between the worker and the employer permanent or indefinite? 6. What is the nature and degree of the employer’s control? This guidance was shared through the DOL’s Misclassification Initiative. Through this initiative, more than 35 states and the Internal Revenue Service are working closely with the DOL to share information and resources in an effort to curb misclassification. Clubs should review existing independent contractor relationships and seek external review by legal counsel when establishing new relationships to ensure they fall within the bounds of the updated FLSA guidance. POST-2016 ELECTIONS In case you had not heard, it’s been an election year. While the Presidential election has certainly received a great deal of media attention, the Congressional elections have been just as important. The outcomes are important but so is the lame duck session following the elections. Congress will be focused on passing its required funding legislation, and this is a time when other bills are tacked onto must-pass funding measures. Stay tuned! B R 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.

NOVEMBER/DECEMBER 2016 | BOARDROOM

BoardRoom magazine

Excellence in Achievement Awards The BoardRoom magazine “Excellence in Achievement” Awards is the only private club industry award that recognizes the clubs’ business partners. BoardRoom magazine’s industry peers review and select these outstanding suppliers and consultants, which represent various aspects of course and club operations. Winners, each year, are selected for overall excellence in their respective fields, achievements, innovation, vision for future growth and continued impact on private club operations. “The BoardRoom Awards are the only awards in the private club industry that recognize private clubs’ business partners, and every year we see increasing innovation, achievement, a vision and dedication from BoardRoom Award recipients. And of course, private clubs are the beneficiary of outstanding work of the industry’s vendors,” said John Fornaro, publisher of the BoardRoom magazine. The BoardRoom magazine is the only publication of its kind that is designed to educate the board of directors, owners, general managers and department heads of private golf, city, yacht, tennis and country clubs about issues concerning all aspects of the club, golf course management and operations. LIFETIME ACHIEVEMENT 2016

ASSOCIATION OF THE YEAR

CLUB MANAGEMENT SOFTWARE OF THE YEAR

Don Williams

HFTP Hospitality Association

Northstar Club Management Software

BOARDROOM MAGAZINE DEDICATION AWARD

ASSOCIATION PROGRAM OF THE YEAR

CLUB PROGRAM OF THE YEAR

Philip Newman

PGA of America

KECamps

GARY PLAYER EDUCATOR OF THE YEAR

BANQUET EQUIPMENT OF THE YEAR

Lynne LaFond DeLuca

Spring USA

CLUBHOUSE DINING ROOM & LOUNGE DESIGNER OF THE YEAR

JAY DIPIETRO VENDOR OF THE YEAR

BANQUET SUPPLIES COMPANY OF THE YEAR

Bill Schwartz

Eastern Tabletop CHAIR MANUFACTURER OF THE YEAR

AMENITIES PROVIDER OF THE YEAR

CLUBHOUSE RENOVATION FIRM OF THE YEAR

Marsh & Associates, Inc. (MAI) (TIE) Judd Brown Designs Inc. (TIE)

Daniel Paul Chairs CLUBHOUSE SIGNAGE OF THE YEAR

Sports Solutions CLUB COMMUNICATION FIRM OF THE YEAR APPAREL PROVIDER OF THE YEAR

HINT/Harris Interior Designers

Signera - Digital Signage

Clubessential CONSULTANT COMPANY OF THE YEAR

High End Uniforms CLUB MANAGEMENT FIRM OF THE YEAR

Troon Golf Management (TIE) Peacock + Lewis Architects and Planners (TIE) KemperSports (TIE) Rogers McCagg Architects (TIE)

Reid Consulting Services Inc.

ARCHITECTURAL DESIGNER OF THE YEAR

BOARDROOM | NOVEMBER/DECEMBER 2016

EXECUTIVE SEARCH FIRM OF THE YEAR

Kopplin Kuebler & Wallace

FERTILIZER FIRM OF THE YEAR

LAW FIRM OF THE YEAR

PAYROLL COMPANY OF THE YEAR

Grigg Brothers

Addison Law

ClubPay

FOOD AND BEVERAGE MANAGEMENT SOFTWARE OF THE YEAR

LINEN PROVIDER OF THE YEAR

PHOTOGRAPHY FIRM OF THE YEAR

Something Different Linen

EA Photography

LOCKER FIRM OF THE YEAR

PROCURE TO PAY SYSTEM OF THE YEAR

Hollman, Inc.

BirchStreet Systems Inc.

LOGO APPAREL AND DESIGN PRODUCT OF THE YEAR

PURCHASING PROGRAM OF THE YEAR

Ambassador Uniform

Xhibtz Contract Furnishings

MANAGEMENT CONSULTANT OF THE YEAR

REAL ESTATE SERVICES OF THE YEAR

Denehy Club Thinking Partners

Hilda W. Allen Real Estate Inc.

MASTER PLANNING

RESEARCH AND DATA FIRM OF THE YEAR

International Golf Management (IGM)

Chambers (TIE) McMahon Group (TIE)

Club Benchmarking

GREEN PRODUCT OF THE YEAR

MEMBERSHIP MARKETING FIRM OF THE YEAR

FOOD-TRAK/System Concepts, Inc. FURNITURE MANUFACTURER OF THE YEAR

Gasser Chair Company GAMING COMPANY OF THE YEAR

Cornilleau GOLF COURSE DESIGN

George Golf Design, Inc. GOLF COURSE MAINTENANCE FIRM OF THE YEAR

SAFETY PRODUCTS AND EQUIPMENT FIRM OF THE YEAR

Bambrella

ClubSafe

Creative Golf Marketing SUSTAINABILITY PROGRAM OF THE YEAR

INNOVATIVE PRODUCT OF THE YEAR

GolfBoard

MEMBERSHIP SURVEY

SES Lighting

McMahon Group TAX CONSULTANT OF THE YEAR

INSURANCE PROVIDER OF THE YEAR

Golf Insurance Services from Epic

MOBILE MEMBER COMMUNICATION

RSM (Formerly RSM McGladrey)

Northstar Club Management Software TENNIS COURT BUILDERS OF THE YEAR

INTERIOR DESIGN FIRM OF THE YEAR

Lichten Craig Architecture and Interiors (TIE) C2 Limited Design Associates (TIE)

OUTDOOR COOKING EQUIPMENT OF THE YEAR

TENNIS SUPPLY COMPANY OF THE YEAR OUTDOOR FURNITURE OF THE YEAR

KITCHEN & FOODSERVICE EQUIPMENT OF THE YEAR

D.E.I. Food Service Equipment & Design

Welch Tennis Courts, Inc.

Big John Grills & Rotisseries 10-S Tennis Supply

Seaside Casual Furniture Company WEBSITE COMPANY OF THE YEAR PATIO HEATER SUPPLIER OF THE YEAR

Clubessential

Dayva International

NOVEMBER/DECEMBER 2016 | BOARDROOM

CASE STUDY |

Building Sustainable Relationships Through Technology - Part II Understanding the needs of current and next generation of members is crucial to sustainability, as outlined in Part I of this series.

RICK COYNE

So how does technology play a role in delivering what’s necessary to drive a collaborative understanding, strategy and tactical implementation? The fact is, you simply can’t effectively get to all of these recommended practices without employing technology. Technology exists today to effectively enhance the club’s ability to address issues and respond to data, rather than conjecture. • Tracking member usage – Who are your best users and who are your worst. Importantly, what technology do you use to identify and employ a communication process that increases usage within the limited users and rewards those that are frequent users. • What members want –Today’s club is a generational mixing bowl. Determining member’s needs and wants requires a demographically qualified survey, allowing staff to see responses by the age of the responder, the family make-up, the gender and the distance of residence from the club. This not only allows scrutiny of existing member’s needs, but if you match up the demographic of recent members joining the club with their responses, it may also tell you what you need to do to become more attractive to your next generation of member. • Effective communication – In nearly every marketing class, communication strategy is king. The greatest ideas fall flat unless they are communicated effectively. If the objective is increasing usage, in turn creating greater satisfaction, loyalty and enhanced brand, use the available technology to ensure that the message is orchestrated, has a call to action, and identifies with the specific end user you have in mind.

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• External branding – Your brand is identifiable by how you deploy your assets. The website is almost always the first place a potential member will look to ascertain the club’s brand. What will they see when they get to your club’s website? If it’s pictures of tennis courts, swimming pools, fitness facilities or the first fairway, without happy people of all ages, including kids, the imagery will not be adequately portraying who you are and how you will provide lifestyle relevancy to the visitor. On the other hand, by employing an inclusive philosophy, covering generations, gender, families and kids, all happy, smiling and communal, simply enhances your brand image and expands your potential new market share. Likewise, updated properly, social media channels send important brand messaging and shared opportunities to enhance the brand image. • CRM systems – The ability to maintain up to the minute information on member usage, likes and dislikes, as well as tracking potential member interests and having a specific followup process is an invaluable tool. So many companies offer this technology, it’s sometimes hard to choose. The best advice is to understand what you want the CRM system to do for you, then decide on the system that delivers what’s most important. Remember a CRM works great for tracking and maintaining contact with both the member and prospective member and it can provide incredibly accurate information to staff relative to how to build a solid relationship and loyalty. • New technology – So much is available to the market today that its often hard to digest everything. Ferreting through what’s crucial or important and narrowing down how it is presented is a great first step in learning how to use the technology.

But hold on to your hats as new things are emerging every day to enhance the member and guest experience. One of the most exciting and even scary is “beacon technology.” Several versions exist, which track member usage and quality of their experiences to identification of what members are arriving at the club. The latter version can track where members are at any given moment while on the property, down to the providing information from their last visit and what activities they enjoyed. Talk about big brother, right? For decades in the private club industry, change has been difficult. Change is inevitable and necessary, and is coming at us at an amazing pace. Ignoring the necessity to change is likely not an option for the majority of clubs. Likewise, accepting reality and changing accordingly opens new markets, makes your club vibrant and gets growth, retention, usage and satisfaction in a positive direction, without gimmicks. Why? Because when you are relevant and interesting in what you offer and provide, the consumer, the member and prospective members see you as having something they need and will pay for. The reverse is also true, if you don’t offer what is relevant to a divergent lifestyle, it won’t matter what price you charge. There will simply be diminished interest.

Today’s club is a generational mixing bowl. The ability to maintain up to the minute information on member usage, likes and dislikes, as well as tracking potential member interests and having a specific follow-up process is an invaluable tool. There are no shortcuts to sustainability. It requires a due diligence process before you set out to reposition. Once you have a direction, it requires a plan. Implementing the plan can necessitate re-educating staff and members and developing a communication strategy. There will be many members asking why you can’t leave it the way it’s always been. Still more will expect vibrancy and change relevant to their every changing lifestyle needs. Happy hunting! B R Rick Coyne is CEO, Professional Club Marketing Association. He can be reached via email: rcoyne@clubmark.com

NOVEMBER/DECEMBER 2016 | BOARDROOM

COURSE DESIGN | ASGCA

Advancing the Game is Key For the ASGCA Where is golf course architecture today?

GREG MARTIN

Certainly, for the 21st Century golf course architect, the passions haven’t changed. The appreciation for the game hasn’t changed. The reverence for natural beauty hasn’t changed. But what has changed is the need to address greater variation in golfer ability, higher expectations, a more sophisticated golfer and changing ownership or membership need. As golf course architects, we must be more educated and more informed about the variety of issues that confront the game. Golf course architects have always approached “the subject” with the same intent...to provide a unique and engaging experience that will capture the imagination of golfers. Golf is about golfers and our task is to engage golfers. That will never change. What will change is golfer expectations, equipment technology and maintenance procedures.

Golf has the unique opportunity to fulfill a variety of community needs. Whether water quality, storm water management, preservation or landscape enhancement, golf courses are flexible enough to work with these demands in ways that will offer solutions to communities seeking win-win solutions. These will be ‘ever-evolving’ and continue as golfers are exposed to new ideas, landscapes and strategies. Certainly, there have been changes to design…from modern and “stadium” golf to minimalistic. In recent years, responding to length has dominated the conversation. That has been harmful to the game. However, a noticeable change has been the evolution from an aerial game (established in the mid/late 1900s) to a conspicuous trend toward ground-game influences. 44

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Firmer and faster conditions and more unpredictability will have a profound effect on design and in the coming years, coinciding with reduced irrigation requirements and water management demands. As golf course architects, our approach is to benefit the game and the environment as it has always been. Given that, golf course architecture and the American Society of Golf Course Architects (ASGCA) are in a good place right now. We have adapted quickly to changing needs, demands and in many ways, we are providing solutions to a variety of problems while offering a wider range of golfer the ability to enjoy this great game. The focus when working with club, especially private clubs first, and foremost, to make sure the investment is appropriate and ‘rightsized.’ That means developing a well-defined understanding of the market, the site, the golf course and the membership. Over-investment [a heavy debt load] or underinvestment [under inspired improvements] can have a similar debilitating effect. Over-spending or under-spending can be problematic. But the worst option is to not invest at all. It is necessary to make sure any proposed improvements meet evolving operational, maintenance, strategic and aesthetic requirements or membership expectations. Clubs with aging infrastructure or memberships need different investments than newer clubs with younger family memberships. Each club is different and each club needs a well-executed analysis of its assets and marketplace. Certainly, environmental concerns have had a profound effect on what we do and how we do it. That is not necessarily bad, but it has made our work more complicated and challenging. Golf has the unique opportunity to fulfill a variety of community needs. Whether water quality, storm water management, preserva-

tion or landscape enhancement, golf courses are flexible enough to work with these demands in ways that will offer solutions to communities seeking win-win solutions. Golf can serve as a buffer to sensitive wetlands, watersheds and creek corridors. Golf courses can help stabilize landfills and mined sites, offering recreation to degraded sites. If designed properly, golf courses will improve water quality, storm water management and create wildlife habitat. Not only does public golf have the opportunity to accomplish so much, it has a responsibility to do so. Golf is more than a game; it is a sport played in, around and amongst the most beautiful and precious resources on earth. If developed properly, golf can preserve these resources while providing controlled and specific access to those environments. Golf courses enrich communities, but only if they are conceived to do so. Golf can be private, but it can be perceived as “public,” in the broadest sense of the word. The ASGCA has a unique and diverse membership. Some firms are large. Some, like me, are small solo operations. That diversity is necessary for the good of the game. We each carry a varied design perspective. That is good. We all practice in different parts of the country and the world. That is good. We can all learn from each other and the game can be better because of these unique experiences. My only goal is to make sure that our full membership is recognized for

the valuable contributions they have provided, whether small or large. The ASGCA membership is smart, thoughtful and considerate of the game, and the ASGCA is in a unique position to advance the game for golfers, owners and the environment. My motivation, as president, is make sure the industry and golfers understand that commitment. Golf is about golfers. Nothing else. It isn’t about the PGA Tour, club head speed, Stimpmeters, waterfalls or golf course architects. It is about golfers. If we engage golfers to enjoy the game more thoroughly, authentically, thoughtfully, with more appreciation of the game they play, we will have a committed golfer. If not, golfers will find something else to do. We have a unique opportunity to engage a golfer on a deeper level. If a golf course can stir the imagination of a golfer, not once, but on multiple occasions, so that they want to return, we have done our job. So it isn’t about what we, as architects, want, or even what golfers want: it is about what golfers need. The Batavia, Illinois-based designer Greg Martin, ASGCA, is president of the American Society of Golf Course Architects. Martin’s best-known course is Rich Harvest Links, an 18-hole track in Sugar Grove, Illinois that hosted the Solheim Cup in 2009. Greg can be reached at: (999) 999-9999 or via email: g-martin@mdpltd.com

NOVEMBER/DECEMBER 2016 | BOARDROOM

MEMBERSHIP COMMITTEE

Use Storytelling Formula TO CLARIFY YOUR CLUB’S BRAND MESSAGE Have you ever cried reading a book or watching a movie?

MICHAEL PHELPS

Most of us have. That’s because story is the most powerful tool there is to compel the human brain. The imagined experiences in a story can become so real to our brain that you’ll shed a tear for someone who probably doesn’t even exist. When we read a story or watch a movie, our brains light up the same way they would if we were actually experiencing what we’re reading or watching, which is what makes a great story so engaging and memorable. But great stories don’t happen by accident. They are extremely formulaic – just like music. If you filter noise through certain principles and rules you get music. A catchy tune gets stuck in your head because the brain registers them differently. Story works the same way using formula to filter random events through very serious rules. Here is the framework based on the most popular elements in nearly every story: 1. A hero character wants something. 2. And encounters resistance or a problem. 3. That they can’t solve themselves, so another character steps into the story as their guide. 4. Who gives them a plan. 5. And then calls them to action, 6. Resulting in either success or failure. Sound familiar? Star Wars. Moneyball. Good Will Hunting. Karate Kid. Not surprisingly, Hollywood is built on storytelling formula and tests them weekly at the box office. But top brands like Apple, Coca-Cola, and Starbucks also harness the powerful formula to their advantage by applying it in a marketing context. Private clubs can do so as well. By filtering branding and marketing messages through this same framework clubs can clarify their messaging too so that it resonates better and becomes more memorable.

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Here’s a basic overview: Step 1 – Identify the hero: The critical mistake when it comes to branding is to position your brand (club) as the hero in the story. Your club is not the hero in the story, your member is. Here’s the paradigm shift: there is no benefit whatsoever in getting your club’s story out. The reason is nobody cares about your story…they only care about their story. So the difference is that you have to understand the story your [prospective] member is living and what role your club needs to play within their story. Step 2 – Isolate the basic need: A hero in a story wants something that is clearly defined. So the very first thing we need to do if we want to invite members into the story we’re telling is we need to define something they want as it relates to your club. It must be simple, relevant and repeatable - meaning a lot of things get left out. Step 3 – Find the internal problem: We tend to offer solutions to external problems, but human beings buy solutions to internal problems. An external problem for a prospect might be a desire to play more golf. But the internal problem describes how the external problem makes them feel – frustrated that public golf takes too long to play and takes time away from family. People join clubs to resolve internal problems (frustration, tension, self-doubt, fear, jealousy, envy, identity, etc.) so work to identify and resolve these in your marketing. Step 4 – Be the guide: In the story, if the hero can resolve their own problem they won’t have a problem. So they need a guide. There are two requirements to positioning as the guide. Empathy, meaning that you show that you are like your members and that you care for them and understand their pain; and, competent, meaning that you show that you are capable of helping them solve their problem.

Step 5 – Offer a plan: As their guide, you need to tell [prospective] members how to do what you want them to do. The brain is drawn towards clarity – give them a few simple steps, even if they are basic. Step 1: Call to schedule a tour. Step 2: Apply for membership. 3. Meet with our membership chair. By offering bite size chunks that people can wrap their mind around you bridge the gap for a potential member. People will almost always choose the brand that communicates the clearest, even if what they offer is inferior. Step 6 – Call them to action: If you are not asking your members to do something, they won’t. Do you want them to attend an event, refer a friend, or schedule a tour? Then this should be said clearly and plainly, and should be the most obvious option for them. Step 7 – Define the stakes: Describe what is at stake for the hero, both in terms of success and failure. Determine what the end of the journey looks like and how the club will participate in their transformation through a better way of life, special benefits that members enjoy, and what people who don’t join will miss out on. Use each of these buckets like chords in a song. You don’t have to use them all every time, and the order can

Not surprisingly, Hollywood is built on storytelling formula and tests them weekly at the box office. But top brands like Apple, Coca-Cola, and Starbucks also harness the powerful formula to their advantage by applying it in a marketing context. Private clubs can do so as well. vary, but everything you communicate (website, social media, etc.) should come from one of these buckets. If not, you are creating noise and confusion and likely giving up opportunities to competitors who are being more clear. B R Mike Phelps is CEO and co-founder of Pipeline Marketing, an award-winning digital, print and creative marketing agency that specializes in creating and implementing membership marketing campaigns for private clubs. He can be reached via email: mphelps@pipeline-inc.com

NOVEMBER/DECEMBER 2016 | BOARDROOM

MEMBERSHIP COMMITTEE

Four Cornerstones of a Membership Plan Foundation BY TED ROBINSON AND STEVE PARIS “It’s a bit like coming up with a spectacular roof design first. Before you can get it up there, you need to build a solid foundation and supporting structure.” Linwood Barclay Recently while facilitating a conference panel discussion – “New Tactics in Membership Recruitment” – the better part of the session focused, as you would expect, on new digital marketing solutions available to clubs today. Our concern is that too many are looking for new techniques before an adequate or relevant foundation is in place. To be able to take advantage of modern digital technology, an effective membership program must be a blend of basic traditional ways of marketing and leveraging the latest technology. All effective campaigns should use fully integrated strategies with both old and new techniques, because without a strong foundation both old and new techniques at best will produce only tepid results. So here’s a review of the foundations required in order for a private club’s membership program to be successful in the long run. In the short term an immediate “high velocity” membership program may appear attractive. However, your goal should be for your club to THRIVE, not just SURVIVE, and to achieve that, the club’s membership foundation must be “solid and supporting.” Here are some key foundation building blocks: First building block: The club must have a brand and understand it. Know who you are and where you should be positioned in your market. What is a brand? Your brand is the essence or promise of what will be delivered to or experienced by your member …your consumer. Jeff Bezos, founder of Amazon, says “your brand is what other people say about you when you are not in the room.” Your brand position statement defines your target member and articulates who you are to that target. It says in writing why a prospect should select you over the competition. To define your target prospective member, you should have a created a profile of the members you are trying to recruit, based upon both the best and the newest members of your club.

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Second building block: Know your competition! Who your actual competition? (this is a key component as you should only be focusing on those clubs that are your “true competition”)? What do they offer? What are they planning to offer? What is their dues and fee structure? Are you completing a CMA (competitive market analysis) every six months? Third building block: You must have a membership sales process that mirrors the way the best sales companies operate – same tools, platforms, procedures. Do you have a true sales person managing membership sales? Are you capturing all contact information from all potential prospects including those who are going to the club’s website? Are you using CRM software to record this information and manage the sales process- following up and assuring no lead gets lost in the shuffle? Are you holding your membership sales team accountable? Fourth building block: To quote Walt Disney: “You have to do what you do so well that anytime anyone sees you doing it, they want to bring someone else back to watch you do it again.” Unless your club’s “member experience” is exceptional – it won’t turn your current members into “raving fans” who will feel good about bringing in new members. When did you last formally measure the members’ evaluation of their experience(s) at your club? Have you completed a “member experience survey” within the last year? Until and unless these and other basic building blocks create a very solid club foundation, you will continually be faced with an attrition rate that is too high and an admission rate that is too low. A strong foundation is the key to reversing negative membership trends. B R Ted Robinson is a partner with Private Club Associates (www.privateclubassociates.com) and can be reached at (478) 741 7996 or by email: tcr@privateclubassociates.com Steve Paris is a partner with Private Club Associates and can be reached at (678) 585-9120 or via email: shp@privateclubassociates.com

MEMBERSHIP COMMITTEE

The Ebenezer Syndrome KILL ‘EM WITH KINDNESS “Treat everyone with politeness, even those who are rude to you – not because they are nice, but because you are”– RoliEdema.com Everyone knows Ebenezer Scrooge – a coldhearted miser who despised Christmas. In the fairy tale his situation is hopeless leaving everyone he is in contact with feeling despondent and disapproving him. In the end, Scrooge realizes his life is worth living to the fullest, brought about by the kindness shown to him by those around him, the realization that life is too short and that happiness far outweighs his miserable ways. In our everyday quest to please the masses, there are always a few people who will not budge from their disagreeable disposition in spite of a great effort to “kill ‘em with kindness.” Everyone knows who they are and they’re not known for their cheerful demeanor. They’re seen around the club and are the center of negative attention usually waiting for anything adverse to come about so they can voice their displeasure. There’s one (or two) in every club! In many instances, they are no strangers to the board or club management who go out of their way to have one-on-one meetings, explain the club’s position and compromise in situations to please them…only to wind up in another circumstance again down the road. So what’s the problem? Is the message unclear? Is everything possible being done to remedy the issue peacefully? Is a true relationship being built between them and the club or is there a Band-Aid approach that puts them off until the next time? The answer lies in “authenticity.” Performing kindly and being kind from an authentic place are two totally different things. Using kind gestures, smiling and expressing pleasant words with someone, while at the same time thinking how annoyed you are with them and quick to judge is not the definition of coming from an authentic place. It is possible that this will affect how the person views you down the road.

“Live in such a way, that if someone spoke badly of you no-one would believe it”– www.spirituallythinking.blogspot.com People will sniff out non-genuine behavior and pick up on it during a conversation. It’s like a seventh sense. An authentic message comes from the heart and is measured with consistency. It should be used as part of everyday life. It may be an element of manipulation, a touch of ego and a pre-notion that the person you are speaking with will be incorrect no matter what, which doesn’t really work when considering coming from a sincere place. You might need to take a step back and convince yourself to change your perspective and detach from making the dialogue personal. It might not be the easiest thing to do but sometimes people are just upset and want someone to listen. Once you disarm the situation and they are no longer upset, “killing ‘em with kindness” will be more suitable and acceptable. Having a conscious mind of making it a habit to always come from a genuine place is really human nature. The kinder you are to others, the more you will be the recipient of unplanned kindness. How many times have you said you liked someone and thought they were nice to someone, and that person replied that they are not nice? Do you think it’s because you genuinely connected with that person in an authentic way? It is very possible to turn the most displeasing personalities around to a softer side with a little psychology and a true heart. “The things you are passionate about are not random, they are your calling” – Fabrienne Frederickson

ROSIE SLOCUM

Rosie Slocum, MCMP, director of membership, BallenIsles Country Club, Palm Beach Gardens, FL She can be reached at (561) 627-3372 or via email: rslocum@ballenisles.com

NOVEMBER/DECEMBER 2016 | BOARDROOM

Club FInanCIal | HFTP

an Illustration of the Club Financial Professionals ComPEnsaTion and BEnEFiTs FoR CluB FinanCE PRoFEssionals Every other year reaching back to 1989, Hospitality Financial and Technology Professionals (HFTP®) conducts a survey of industry compensation and benefits practices.

Frank WolFe

Tanya Venegas

The report provides a profile of accounting, finance and technology professionals employed in the hospitality industry, and the information in this survey is intended for several purposes including salary comparisons, budgeting processes, staffing guidelines, contract negotiation and benefits standards. While the survey covers professionals in both the club and lodging industries, here we are highlighting the data specific to clubs. There were 483 responses to the survey distributed earlier this year to the HFTP membership and other industry professionals working in hospitality financial and technology disciplines. Forty-eight percent of these responses are from those in the club industry. REsPondEnT PRoFilE Controllers (35 percent) and directors of finance (13 percent) represented the majority of responses. In representing clubs, 69 percent worked at a full service country club with a majority membership at 250–500 (35 percent) and 501–750 (28 percent). Regionally, 41 percent worked in the South Atlantic region of the U.S., followed by the Middle Atlantic (14 percent) and East North Central (12 percent). WoRk WEEk The club finance professional pulls in long hours, with the respondents averaging 49.7 hours per week. When asked where they spent their work week, the

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respondents reported that 77.6 percent of the time was spent at the club and 10.9 percent at home. The role a club finance professional plays ranges widely, with the respondents naming the following duties they were responsible for: • Accounting/finance - 92.7 percent • Human resources - 60.7 percent • Administrative/office staff - 46.6 percent • Technology - 43.7 percent • Membership - 16.5 percent • Purchasing - 9.7 percent • Marketing/revenue management -7.3 percent • Security - 7.3 percent ComPEnsaTion With hard work, comes rewards, but how big are those rewards? The average salary for the CFO position is $132,240 with a $21,218 bonus. Subsequently, the average salary for the director of finance is $113,707 with a $12,362 bonus, and for the controller, it is $96,810 with a $9,002. TECHnology The use of technology is making its way into the club environment, but how big is a club’s technology support? Respondents were asked the size of the clubs’ IT departments. However, majority did not have any dedicated IT staff (77 percent). Clubs with one IT staff member recorded 16.4 percent and two staff members with 3.1 percent. But the clubs are not without some IT support, as a majority had at least one outsourced employee (51 percent); two outsourced employees at 8.6 percent and three to five at 10.8 percent. In reviewing the results to this survey, the picture shows a multi-tasking, hard-working professional. We all know that the wide array of service offered and the level of hospitality provided in the club environment draws exactly this type of individual. B R Frank I. Wolfe, CAE, is CEO for Hospitality Financial and Technology Professionals (HFTP). He can be reached via email: Frank.Wolfe@hftp.org

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ExEcutivE committEE

What Does It Take to build a Winning Culture? Change is not only in the air. it’s in the office, the boardroom, the leadership seminar and the talks among CEos and organizations’ presidents.

rITa b. CraIg

Central to the change is the largest cohort in history – those millennials we hear so much about – surging into the workforce with their own desires and demands. In addition, globalization is becoming more personal every day as people of different colors, accents and ethnicities become common in offices and professional groups. It raises a challenging question for today’s leaders: “How does this impact my organization’s culture?” and for some, “What is a company or club culture, anyway? By most definitions, a corporate culture is a system of shared assumptions, values and beliefs that govern how people behave in organizations and impacts a company’s or club’s success. The values have a strong influence on how they act, dress, and perform their jobs. The term applies across the board – to the private club and golf industry as well as to manufacturing companies – and includes diversity. In golf, for instance, there’s been a spike in interest in India as well as other places. And the industry is responding by being more inventive with incentives to entice and keep good people. “We’ve changed our philosophy,” says Richard Creely, manager at Summit Golf and Country Club, north of Toronto, Ontario, Canada. “Clubs have to be more welcoming and open than some have been in the past.” Organizations are taking a hard look at themselves, asking: How positive is our environment? Do our employees consider it a great place to work? Is there open communication and active listening or are people afraid to speak up? Is there mutual respect and trust among colleagues and managers? Does everyone feel appreciated? This is not airy-fairy stuff. For example, employee engagement and retention is one of the top challenges facing business leaders today. As the economy improves, workers have more options, more bargaining power.

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Those who don’t feel comfortable in their work setting are likely to consider those options. Those who do, who value the environment, are less likely to hop to another job, eliminating costly employee turnover. With thousands of baby boomers hitting retirement age every day, attention must be paid to what millennials are seeking in employment. While it’s not possible to paint this huge group with one brush, studies show that many want to make a difference in the world. They care about the environment. They care about their communities. They care about diversity, mentoring and leadership training. They want flexible schedules that allow them to be involved with them. In some organizations, a culture may be implied rather than expressly defined. It often develops organically over time from the cumulative traits of the people the company hires. But as businesses seek to respond to emerging trends and markets, a well-defined culture may be more important than ever. What does it take to build a winning culture? • A clear vision and a strategy for achieving it. • A mission statement to communicate it – a short, simple statement that defines the organization’s purpose and lays out its values. • A leader who epitomizes those values and encourages trust, respect, and appreciation between workers and managers. • Employee recognition. When people do a job well, it’s important to compliment them. It strengthens relationships and improves productivity. The Merriam-Webster Dictionary reports that culture was the most popular word of 2015. Why is this interest so widespread today? Because in a time of change, it matters. So does communicating it well. B R Rita B. Craig, president of Top Tier Leadership, is a leadership consultant, trainer and keynote speaker. She can be reached at (561) 775-3396. www. TopTierLeadership.com

ExEcutivE committEE

Directors Can Impact social experiences and social media by ron CIChy

social experiences at a private club include activities and events. sometimes the point of connection is social media. In our recent research about social media, we discovered that the club’s website and email blasts from the club are the two top methods of communication when it comes to social media. Increasingly people are wondering why they call it “social media”, since the use of technology to communicate is getting increasingly less social. Think about it. Conversations have moved from personto-person to an exchange between two with a Smartphone or a laptop right in the middle. In the true sense of the word, these are anti-social exchanges of information. That is, they are not using person-to-person communication rich with all of its facial expressions, body language and change in voice inflections. Instead, folks insert little emoticons to try to explain the feelings behind their messages. In many cases, members join a private club to socialize with other members. They want to be greeted in person when they arrive, by name, and in a welcoming way that says “you have now arrived in the ‘third place,’ that is, your home away from home,” third only to the first place (i.e., home) and the second place (i.e., work). After a long day communicating digitally, perhaps what members seek most is to shut off that machine, take a deep breath, and engage in quiet time (in the fitness center, or the spa), family time (around the pool or in a casual dinner), or in experiences with others at their club (playing nine holes or enjoying a cocktail at the 19th hole). The social experiences range across many choices provided by the club. As a member of a private club’s board of directors, what, if anything can you do to direct social experiences and social media to be more, well, social? How is it that you can influence a more social club environment? The first is to be welcoming to the members that you meet. They want to know that you as a board member genuinely appreciate their presence in the club. They want to know that you honestly and sincerely appreciate them as fellow owner-members. Your appreciation will enhance their sense of belonging and arouse in them a need to become more actively engaged.

Listen to the member and try to discern what that owner is looking for as a member of that club. What is it that person seeks? How can the club assist in providing it? Perhaps the person is looking for a social setting to be together with similar people. Maybe the person is hopeful of becoming a committee member, and then a committee chair, and then even a member of the board of directors to be able to satisfy a need to give back to others.

as a member of a private club’s board of directors, what can you do to direct social experiences and social media to be more, well, social? The first is to be welcoming to the members that you meet. They want to know that you as a board member genuinely appreciate their presence in the club. They want to know that you honestly and sincerely appreciate them as fellow owner-members. Board members have the power to make others feel important, with sincerity and respect. Every member of the club appreciates an act of kindness, one that says: “You are important. Your family members are the future generations of club members. We will do what it takes to continue to create a place where your needs and wants are satisfied, your expectations are exceeded, and the experiences that you have here are positively memorable” – the foundation of service from the heart. It is authentic hospitality that is genuine. The boards of directors who make such an impact lock in other owners, so there is no consideration, ever, of leaving the club. This is directing social experiences and social media while strengthening the value of club membership. B R Dr. Ronald F. Cichy, O.M., Professor, The School of Hospitality Business, Michigan State University

noVember/DeCember 2016 | BOARDROOM

exeCuTIVe CommITTee |

six Things Clubs Can Do to attract millennials millennials!

WhITney reID Pennell

That was the buzzword in every education session and talk among colleagues at a conference I attended recently. How can we attract Millennials to private clubs? The traditional private club model is changing. While change may feel a bit scary, it is actually an amazing opportunity for our industry. We are in the midst of a fundamental shift of our business model. Every industry has experienced change and ours is no different. To attract the members of the future, private clubs should adapt and evolve to the needs of the membership today. 1. Emphasize the entire lifestyle your club offers, not just the golf. Women have an influential role in household purchasing decisions, becoming a highly coveted audience for today’s marketers. By showcasing modern amenities and family activities with convenient food and beverage services, a club can attract busy mothers and young professionals who are looking for the ‘third place’ to spend their most precious asset – their time. 2. Invest in your food and beverage program. One of the most influential areas of your club is the food and beverage operation. It is the social hub of the club. Many members look to the club to provide not only convenient options, but also healthy items that are current with today’s public restaurant menu trends. Today’s families are largely made up of busy dualincome professionals who are looking for ways to simplify their daily life. 3. Revamp your programming. Engaging members is one of the most important aspects of your club. Simply offering a great restaurant or golf course isn’t enough to engender loyalty from young club members. Offering diverse multi-generational programming will help attract and retain members for years to come. 4. Re-think your golf course. While golf is still a primary driver that moves prospective members, young members want more diverse

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options. Make your course stand out by investing in new technologies and modern transportation like non-traditional golf carts, nighttime golf socials, and family events focused on fun and learning. 5. Consider the Millennial lifestyle. Traditional workdays and locations do not apply to this generation. They can work from anywhere at any time because of technology. Providing a space where they can enjoy their technological devices or simply ‘hang out and be’ is critical to this generation. However, as tech dependent as they are, Millennials also seek a respite from information – so a balanced multi-use adult-only space is often heard as a top request from the Millennial generation. 6. Redesign your website experience. The website is the front door to your club and it should be mobile friendly. Many users experience websites in a mobile manner. Most clubs pour a significant amount of money into their physical structures, but investing in your online experience is just as important. Individual companies and industry business models have always had to adapt to their surroundings. Where would we be if Delta had only stuck with crop dusters or Amazon had decided they would only sell books? Adapting is the name of the game. Having the foresight to see the trends and mold to them instead of resisting change is the key to longevity. B R Whitney Reid Pennell, president of Reid Consulting Services, Inc. (RCS) is a celebrated management consultant, educator, and speaker. RCS, the creators of Food and Beverage Service Boot CampTM, specialize in strategic planning, operations consulting, food and beverage management, and training programs. For more information, phone (623) 322-0773; or visit the RCS website at www.consultingrcs.com.

noVember/DeCember 2016 | BOARDROOM

BoaRdRoom magazinE’s Final THREE CluB PREsidEnT PRoFilEs FRom THE ToP PRivaTE CluB PREsidEnTs oF 2015. sTay TunEd FoR THE ToP PREsidEnTs oF 2016 in ouR JanuaRy/FEBRuaRy 2017 issuE.

TOP PRIVATE CLUB PRESIDENTS 2015 - SPONSORED BY

francEs pEck, prEsidEnt | abErdEEn golf & country club | boynton bEach, fl

FRanCEs PECk, PREsidEnT (CEnTER); miCHaEl diPiETRo, gm; JoHn FoRnaRo, CEo/PuBlisHER BoaRdRoom (RigHT)

Frances Peck’s unwavering commitment as a visionary leader defined her term as president of aberdeen golf & Country Club in boynton beach, Fl. “she is a team player who is truly selfless, always placing the needs of aberdeen golf & Country Club at the forefront of her priorities regardless of personal sacrifice,” explained the club general manager michael DiPietro. “she is a forward thinker who is unwavering when leading the board through unpopular and necessary business decisions that ultimately become popular decisions embraced by the general membership.” Formerly, the treasurer and chief financial officer for a 150-million-dollar security guard company, which provided security services to various branches of the Federal government, President Peck served on aberdeen golf & Country Club’s board for 11 years, including four years as the club’s president and another four years as vice president. Peck is a consummate professional, a steadfast supporter and a visionary with an enthusiastic thirst for the continuous growth of aberdeen golf & Country Club. “Fran is also a loving wife, a dedicated mother and grandmother, and a caring friend with genuine heartfelt kindness,” DiPietro intoned. B R

irwin tEppEr, prEsidEnt | wycliffE country club | wEllington, fl

iRWin TEPPER, PREsidEnT

daRREll WildE, gm

established in 1990, Wycliffe Country Club, in Wellington Fl, had been experiencing significant governance and operational issues when Irwin Tepper began his term as president. Fellow board members viewed Tepper as the person who could redress the club’s problems, instill confidence and gain support from the membership. To that end, Tepper stepped up and made great strides in turning the club’s membership around. 56

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• Tepper initiated the club’s first-ever strategic plan • Instituted board and committee orientations conducted by third party facilitators • reformed a committee system that was not performing up to its potential • streamlined board meetings by limiting discussion to policy related topics, and • Developed a ‘roles and responsibilities matrix’ in which board members, committees and management are tasked with projects derived from the strategic plan and everyone is held accountable for their performance. In addition, the club began conducting annual comprehensive membership satisfaction surveys and an inaugural comprehensive employee satisfaction survey – both administered by an independent third party. as President Tepper completed his first year as president, member satisfaction increased significantly, In addition, the club directed its second annual member satisfaction survey. year-over-year the survey showed an overall improvement in membership satisfaction of approximately five percent. This equated to a score of 4.40 on a scale of 1 to 5.

randy sinnott, prEsidEnt | Jonathan club | los angElEs, ca

Randy sinnoTT, PREsidEnT

maTT allnaTT, gm/Coo

randy sinnott has shown incredible vision, insight and leadership during his term as president at the Jonathan Club in los angeles, Ca. The club’s board of directors, under sinnott’s guidance the board has taken great strides in improving and formalizing its governance procedures. First, the board and senior management collaboratively defined the roles and responsibilities of the board of director, president and general manager. The board clarified that its role is governance and oversight, with the general manager entrusted and empowered to run all of the club's operations, account for the results of those operations, and be free to do so without micromanagement. The results have been noticeable and immediate, and these policies are periodically reviewed by both the board and management. “a club thrives through consistency and the most critical element is governance as it sets a straight and clear course for the organization and management,” explained Jonathan Club general manager/Coo matt allnatt. During President sinnott’s term, the club changed its bylaws in two significant ways. The first change allows for a so-called "slate" nominating process, whereby the number of nominees for open board of directors’ seats matches the number of vacant director positions. This change is intended to encourage those members who are most qualified for board services – Ceos, attorneys, accountants many of the most noteworthy improvements resulted from the members’ satisfaction with the performance of the board. The overall score increased by 46 percent to a value of 4.20 on a scale of 1 to 5. of those who expressed an opinion about the performance of the board, 85 percent felt performance improved. “Irwin has been very diligent in focusing the role of the board to setting policy, strategic planning and budget determination,” explained Wycliffe general manager Darrell Wilde. “he is very supportive of my efforts to implement policy and management of the club. We use the committee system as the bridge between the board and management, and we’ve have found it important to meet weekly and share our thoughts about club matters.” “President Tepper goes about getting his job done while maintaining an even keel, even in difficult situations. he pays atten-

and other professionals – to volunteer for service without facing the prospect of an unsuccessful candidacy, which historically has deterred a number of stellar members from running. as well, the composition of the nominating committee has been altered to provide for the experience of both past board members and presidents, and a cross-section of the membership at large, to take full advantage of the club's diverse demographics when selecting future leaders. The second bylaw change limits the number of members eligible for one-half dues status, in order to stabilize dues revenues and provide for greater financial stability. Jonathan Club continues to emphasize return on experience for all club members and guests. Improvements in this experience during randy's presidency include enhanced food and beverage offerings with cutting edge innovations such as a rooftop organic urban garden, a robust wine and beverage program, and unique culinary dishes designed and prepare by a world class chef. The Town Club in downtown los angeles has been expanded into a full urban retreat experience, and the club's fitness and wellness program addresses the needs of all of the club's members. “randy’s dedication to achieving this goal has set our club on a path for unparalleled success. randy is a thoughtful and resolute leader. he takes the time to ask the questions needed to make informed decisions. he takes all input into consideration, and believes in a collaborative process, one that benefits the whole,” gm allnatt added. “he is a visionary leader who understands that the decisions made must take into account what is best for the club and best for the membership. randy leads by example, as a leader, a professional and an involved member who cares deeply for the club.” sinnott, a founding partner in a los angeles law firm, served in the u.s. marine Corp for 30 years; has been was the national president of the marine Corps reserve officers association, president at the magic Castle in hollywood, a private club for magicians, and the vice-president of the Disabled Veterans business alliance. randy has three adult children, all of whom are Junior members of the Jonathan Club. B R

tion to details. he empowers others to participate in the governance and management of the club; he has increased communications with the membership and interacts with members in a variety of ways. he instills confidence in others with his ability to ensure that the club arrives at good decisions,” Wilde professed. Jerry bailin, a resident of Wycliffe since 1994, considers Irwin Tepper to be an extraordinary individual and views his board leadership as a gift. “Irwin’s dedication is remarkable and combined with having a strong relationship and respect for our gm Darrell Wilde, he has developed a high level of transparency. Working together, Irwin and Darrell are a powerful tool for our members. I congratulate Irwin on being named a 2105 Top Private Club President,” bailin exclaimed. Irwin and his spouse Joan have been members since 2009 and have three grown children and two grandchildren. B R noVember/DeCember 2016 | BOARDROOM

wEllnEss committEE

lead, Follow or get out of the Way 4 PRivaTE CluBs THaT aRE sHaPing THE FuTuRE oF THE CluB indusTRy sPeCIal To boarDroom

ask 100 club managers to describe wellness and you’ll likely get 100 different answers. Ask a private club manager if their wellness program positively affects their club’s recruitment, retention, usage, profit and loss and the member experience, and you will find they all have one thing in common – they do it because it’s the right thing to do! Four private clubs featured in this section are located in California, Arizona, Colorado and Florida. All enhance the member experience by including health and wellness as part of their strategic plans. “With over 1,000 interviews and onsite visits to hundreds of private clubs, America’s Healthiest Clubs has concluded ‘options’ is one of the most common denominators among private club leaders. To be relevant to the changing demographics' interests and lifestyles, clubs must provide options for fitness, recreation, healthy menu options and related amenities and programming.” says Rick Ladendorf, executive director of the America’s Healthiest Clubs health and wellness certification program and president of Prevo Health. For some clubs it’s a matter of keeping up with the competition, and for others, wellness is what makes them unique in their market. Either way, private club leaders are paying attention to the trends and incorporating wellness related programming and amenities in their strategic plans, and more importantly, in their culture. noTEWoRTHy TREnds imPaCTing THE PRivaTE CluB indusTRy According to IHRSA (International Health, Racquet & Sportsclub Association), 55.3 million Americans belonged to at least one of the 36,180 health clubs nationwide with a 72.4 percent average rate of member retention for IHRSA clubs. This means there are nearly 15 million people that resigned, many of which may be interested in joining a private club as a sports or social member. According to the Physical Activity Council and Sports Marketing Survey 2015, the top activity in the USA is walking for fitness, with about 1110 million participants. Treadmills and running/jogging came in at 50 and 48 million participants respectively. Conclusion: every private club should develop programming that caters to this population by using every inch of the club’s amenities. 58

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Top 20 Food Trends in 2016 published by The National Restaurant Association lists the top six trends as 1) Locally sourced meats and seafood 2) Chef-driven fast-casual concepts 3) Locally grown produce 4) Hyper-local sourcing 5) Natural ingredients/minimally processed food and 6) Environmental sustainability. People want to know where their food comes from and they want healthy, local and fresh ingredients. Last but not least, one of the largest generations in history is about to move into its prime spending years. Ninetytwo million Millennials are poised to reshape the economy. HoW Can THE PRivaTE CluB indusTRy sTay RElEvanT? “The private club industry is at a tipping point,” explains Ladendorf. “The landscape has changed, and unless we as an industry change with the times, many private clubs will fail and even more clubs will find themselves sucked in to the death spiral, where increasing dues and member assessments cause member resignations. This in-turn requires further dues increases and assessments, which causes further resignations, making it difficult to attract new members,” he continues. There’s no sustainability strategy for these clubs. The solution is simple. Stay relevant by providing the amenities and programming that helps attract and retain members. The trends are telling us what to do but the real question is: Are we adapting or simply kicking the can down the road? WEllnEss WiTH a PuRPosE Since the inception of the America’s Healthiest Club™ certification program in January 2013, members of this elite group of clubs have demonstrated and proven wellness is an effective strategy that significantly contributes to selling memberships and real estate; reduces attrition and increases member usage and spending. On a similar note, wellness can positively impact the health and wellbeing of the staff, which can in turn reduces the cost of health care benefits.

Wellness has a purpose in the club industry and to help the clubs better understand what this means, America’s Healthiest Clubs™ has announced the Wellness Project™, a club-wide initiative that will: A) Educate and share best-practices B) Develop curriculum for industry wellness academies for the ultimate hands-on and interactive learning experience and C) Launch an earned media campaign that will attract new members to the club industry. “As of September 30, 2016 the Wellness Project founders and their respective clubs have made a commitment to support the initiative and provide their insights and real-world experiences that will help forever shape the future of the club industry,” says Ladendorf. “Please join me in recognizing the following founders.”

JonaTHan CluB Matthew Allnatt, GM/COO of the Jonathan Club in conjunction with the club’s Executive Chef Jason McClain have developed a comprehensive farmto-table program featuring locally grown herbs, greens and vegetables from both their very own urban rooftop garden and partnerships with local farms. “The culinary experience is all about the ingredients,” explains Allnatt, “and our members appreciate our commitment to sourcing, growing and

using locally grown seasonal, fresh, organic, pesticide-free and nutrient-rich food. The farm-to-table program dovetails nicely in to our branded Find your Balance fitness and wellness program for both our city and beach facilities.” Wikipedia defines farm-to-table as “a social movement, which promotes serving local food at restaurants and school cafeterias, preferably through direct acquisition from the producer.” The farm-to-table movement has arisen more or less concurrently with changes in attitudes about food safety, food freshness, food seasonality, and small-farm economics, which also lead us to another significant benefit to the club, the community. “In addition to Jonathan Club’s support of local farmers, we are involved in many other philanthropic community outreach programs that connect the community to the club,” stressed Allnatt. “We have also taken a much more firsthand approach by establishing the Jonathan Club Charitable Fund, significantly con➤

maTTHEW allnaTT gm/Coo

ExECuTivE CHEF Jason mCClain

JonaTHan CluB uRBan RooFToP gaRdEn noVember/DeCember 2016 | BOARDROOM

tributed to by our membership, where our mission is to further support charitable and educational causes in our community. We continue to invest in the community because we believe it is the right and responsible thing to do, and as a result have experienced that ‘paying it forward’ also has a way of giving back, by signing on number of new members.” Matthew Allnatt is a true leader in the club industry and has a vision to create a ‘community within the community’ where the club, the staff, its members and the community all work together in harmony, where the nation’s top one-percenters’ are active participants in the process of helping the other 99 percent live healthier and better lives, which in turn as a bonus improves the overall member experience. Case in point, Chef Jason McClain volunteers his time and is a frequent speaker at two local culinary charities and Santee High School, a local Title 1 inner city school with an onsite garden. McClain’s effort played a role in helping Santee win a national culinary award where the kids and the school’s chef/teacher were invited to the White House. Careers through Culinary Arts

mikE HEsTERa, gm/Coo THE dEnvER aTHlETiC CluB 60

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Program (C-CAP) and Culinary Arts Kids Eat (CAKE), together with Jonathan Club’s support, aspire to scale the model to other schools in the LA Unified School District and beyond. “It’s more than just a farm-to-table movement. At this time in my life, I have been given so much, it’s the absolute right time to give back to others,” emphasizes McClain. Visionaries at the Jonathan Club continue to think outside the box and are actively working on a sustainable business model that educates, feeds and financially supports underserved families in the community. Allnatt, the leadership team and the club’s board appreciate the symbiotic relationship between the club and the community, and with Prevo Health, are teaming up to see how the club industry, and specifically Jonathan Club can implement some of the same strategies of the Blue Zones Project©, an organization focused on helping people live longer, better lives. This discussion has led to the creation of The Wellness Project™, an initiative of which Allnatt is one of the founding members. “I am grateful for leaders like Matthew and Chef Jason, who are willing to do the right thing by paying-it-forward and going above and beyond to help solve some of the social issues that we face in America,” says Ladendorf. THE millEnnials; a CasE sTudy FRom THE dEnvER aTHlETiC CluB Established in 1884, The Denver Athletic Club is downtown Denver’s premier member-owned, private club. The club features a state-of-the-art fitness facility, wellness programs, a 25-meter, eight-lane swimming pool, handball, racquetball, basketball and squash courts, yoga, wellness, cross-fit, billiards and even a bowling alley. While these amenities are great, the real story behind the scenes is the fact the average age of a new member is 31. Pretty impressive when you consider the average age of a typical club nationwide is nearly double that. So what can we learn from The Denver Athletic Club? How are they attracting the Millennials? Do Millennial matter to your club? How important are they to the future of the club industry? The answers lie within the definition of the 92 million Millennials (age 18-35) that are potentially moving their way into the club industry. According to Goldman Sachs, “One of the largest generations in history is about to move into its prime spending years. Millennials are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come.”

THE dEnvER aTHlETiC CluB FiTnEss FaCiliTy

THE dEnvER aTHlETiC CluB aquaTiCs FaCiliTy

Millennials are devoting time and money to exercising and eating right. Their active lifestyle influences trends in everything from food and drink to fashion and travel. “We are blessed to be part of the boom that is taking place in Denver, where the Millennials are moving to the city looking to network, relax, have fun and stay fit,” shared Mike Hestera, GM/COO on the club’s recent success with this generation. “We are 132 years old and have reinvented ourselves to accommodate the younger demographic. We have upgraded and remodeled and will continue to adapt to the changing demographics so we can continue to stay relevant. “The big box and boutique fitness facilities in the downtown area have many of the same fitness amenities, but what sets The DAC apart is the breadth and depth of activities, the casual dining and vibrant atmosphere. In the ‘old’ days, our members were going home at 9:00 p.m. after enjoying a formal dinner. Nowadays, our members start rolling in at 9:00 p.m., have a casual light and healthy dinner, network and stay late, ” Hestera explained. THE vinEyaRds CounTRy CluB – naPlEs FloRida Before joining The Vineyards Country Club, a for-profit country club in Naples Florida, Paul Malonson, GM/COO worked for leading golf management companies where the bottom line and profitability were as important as the member experience.

Malonson understands the importance of offering the finest amenities and programming to stay competitive, but more importantly, he has a passion to create an environment that caters to the prospective and current member’s lifestyle and simultaneously becomes part of the overall club culture. “My job is to protect and enhance the club’s assets while at the same time offer amenities and programming that are on par with other clubs in the area,” Malonson explains. “The club has never assessed the members in its history, and as a team we have performance based compensation to help keep us focused on the mission.” Plans are in motion to convert the fitness center to a wellness and lifestyle facility and the club has recently hired Eric Eccles, holistic fitness specialist, master trainer, published author, trained hypnotist and meditation coach, to lead the department. Eccles brings over 27 years of experience and a litany of fresh ideas to the department. Programs such as Lifestyle & Wellness Workshops that integrate all aspects of living well will inspire new memb ers to join while simultaneously satisfying and engaging current members. The new wellness center will be funded by the ➤

ERiC ECClEs, HolisTiC FiTnEss sPECialisT

THE vinEyaRds CounTRy CluB FiTnEss FaCiliTy

Paul malonson, gm/Coo

THE vinEyaRds CounTRy CluB noVember/DeCember 2016 | BOARDROOM

owner and managed as a profitable department, all without an assessment or significant dues increases. “Within a few minutes of meeting Paul Malonson, it was clear to me he was not like most GMs. Paul thinks, acts and looks like a wall-street executive,” Ladendorf intones. “The private club industry needs more fiscally astute responsible leaders like Paul as the industry continues to adapt to the changing demographics and lifestyle changes. We are proud to have Paul and the Vineyards as one of the 20 founders of the Wellness Project™.”

“We love to bike, walk, hike, workout and eat healthy,” explains Jill, “most importantly, we were looking for a club that offered us a way to connect socially with people in our age group (mid 50s) that share our active lifestyle. We narrowed our search to Scottsdale and selected dEsERT mounTain CluB – sCoTTsdalE aRizona Desert Mountain, not only for its current amenities but the club’s future vision.” Desert Mountain Club is Larry is an active, standing committee member and Jill sits on one of the club sponsored more than a club. It’s a charities. lifestyle community that Bob Jones, GM/COO has a long-range strategic plan that appeals to current and prospecoffers miles of hiking trails, tive members. One thing that separates Desert Mountain from the field is their robust and an impressive wellness cenintegrated database to help manage the data that includes nearly 50 clubs-within-the-club, ter and all the amenities thousands of member preferences, lifestyle and fitness interests, personal preferences, food found at some of the best allergies and participation data of its 2,000 members and their families. wellness destination resorts “Collectively our team understands our members across multiple departments and with and retreats in the world. the data at our fingertips,” Jones explains. “We are better equipped to provide the member Desert Mountain members with an experience that exceeds their expectations.” Larry and Jill Porcellato moved “In addition to its new 42,600 square foot Sonoran Wellness facility, the club opened from Cleveland, Ohio in Café Verde, a healthy, casual quick-serve restaurant that serves fresh, local ingredients, search of a community that green smoothies and more,” adds Ladendorf. “Café Verde is located in close proximity to catered to their active the pool, tennis courts and fitness center with indoor and outdoor seating.” lifestyles, and yet neither one “Desert Mountain Club is on a mission to write the next chapter in defining what wellof them golf. ness means to myriad generations, from Millennials to Baby-boomers and beyond,” Ladendorf emphasizes.

BoB JonEs, gm/Coo 62

many issuEs “There are many issues impacting the private club industry from changing demographics, declining golf rounds and increasing health care costs to name a few,” outlines Ladendorf. “But, it’s common knowledge that wellness and fitness are shaping the future of the private club industry and many clubs have existing wellness and fitness centers and many other clubs are getting on the bandwagon because they see it as a way to enhance the club’s future and enhance the member experience. “Wellness is a catch-all term that has many meanings and since every club is unique, it’s difficult to create a one-size fits all solution, which is the reason we are spearheading the Wellness Project™. This initiative will help all clubs, regardless of size or geographic location, better understand how to leverage current amenities, improve programming to inspire new members to join and retain existing members by providing a member experience that can only be found in the private club industry.” B R

BOARDROOM | noVember/DeCember 2016

noVember/DeCember 2016 | BOARDROOM

financE committEE

Capital Investment in THE noT-FoR-PRoFiT, mEmBER-oWnEd PRivaTE CluB - PaRT ii in presenting, what to our knowledge is the first research on return on investment in private clubs, (BoardRoom magazine, september/october, 2016, Part i), it includes these key points:

ray CronIn

• In for-profit businesses, capital investments are judged based on the return on investment • Return on Investment in a not-for-profit club is the Total Capital Income, including initiation fee income and capital dues and assessments. • A business can judge its overall returns by measuring Return on Equity. In the not-for-profit club market Return on Equity is calculated as Total Capital Income/Unrestricted Net Assets. • Capital rich clubs had an average ROE of 13 percent while capital starved clubs had an ROE of five percent, even though capital rich clubs invested nearly four times as much. In Part II, we focus on the implications of the research. making THE CalCulaTions Calculations used to evaluate your club’s returns are as follows: 1. Total Capital Income = Initiation Fee Income + Capital Dues Income + Debt Service Assessment Income + Capital Assessments + Investment Income + Any Other Capital Income (fees from hosting tournament, donations, assets producing income such as oil wells, etc.) 2. Return on Equity = Total Capital Income / Unrestricted Net Assets NOTE: Some clubs are in anomalous situations with total Unrestricted Net Assets (UNA)

approaching zero. Such clubs have not continued to invest to keep up with depreciation. Those clubs may show unrealistic ROE because of a nearly non-existent investment base. This state is easy to recognize: These clubs typically have a clubhouse and physical plant that is worn out or exceptionally high debt in lieu of capital income from members. THE imPliCaTions The table below summarizes data from 540 clubs with at least $40,000 of total initiation fee income in 2015. A critical theme emerges from the table. There is clearly a link between greater investment and higher capital income. The table focuses only on the initiation fee income component of capital income. The four groups – A, B, C and D – represent the four quartiles of the 540 clubs in the Club Benchmarking database with initiation fee income of more than $40,000 that also submitted UNA data. The key take-away from reviewing trends across the groupings is that as the amount invested in a club grows (represented by Unrestricted Net Assets) the initiation fee also grows. Group D, clubs with the highest total invested, have initiation fees 10 times greater than Group A, which are clubs with the lowest total investment. The ultimate marker of a club’s value proposition is its initiation fee. It reflects the market intersection of supply and demand for membership in the club. The greater the demand for membership in a club, the higher the initiation fee. The table shows clearly there is greater demand for clubs that have more invested. Ultimately, clubs that have more invested have a higher value proposition as evidenced by the initiation fee. Many clubs cut initiation fees in an effort to attract members without realizing that by doing so, as proven by the data, they are also cutting the potential for return on investment in their sEE FinanCE CommiTTEE | 69

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financE committEE

Pay me now or Pay me later While assisting a member-owned, not for profit club in evaluating its options for the future recently, on the surface, the club appeared to be getting along nicely. An 18-hole golf course, in a “major-league” market with a membership complement short of full, but healthy enough to be paying its bills. Like many clubs, most capital projects had been put off and in this case debt has been kept to a minimum. The club sports many (not all) of the characteristics below that are representative of a successful club: • Top notch facilities • High value in membership • High member satisfaction • Stability of membership • Quality maintenance • Quality food & beverage • Constant improvement • Re-Investment in upgrades • Good planning • Board focus on members • Manageable (if any) debt • Acceptance to change • Leaders lead; managers manage • Sound financial management • Exceptional personal service • Sound financial plan However, infrastructure maintenance is where a ‘ticking time bomb’ has been created. In this case, they’ve not updated the clubhouse in many years, struggle to attract women and families without a fitness center and have dated HVAC and irrigation systems that represent a looming and significant cost to the membership. It’s unlikely that many members have joined clubs because they have modern HVAC systems or the latest computerized irrigation. They simply expect those items to be in place. And unless they’ve invested a considerable amount in entrance fees, might potentially resign if a large assessment were looming as a result of the club not having established reserves for the replacement of these types of items. On the surface, there are many clubs that appear stable, only to have looming crises as a result of ignoring infrastructure. Even as some

clubs have experienced membership and revenue declines, they’ve balanced budgets by “kicking the can down the road” for the next board or next generation of members to deal with. We’ve observed such practices as replacing HVAC controls and band aids to the system, addressing irrigation leaks in a reactive manner and even moving sand from fairway bunkers to greenside bunkers to avoid purchasing bunker sand. Depending on the club’s financial situation, membership and market dynamics there are multiple options. Some clubs opt to “bite the bullet” and assess the membership for the necessary costs. When possible, the club also begins reserve funds to avoid this problem in the future. Others incur debt to solve the problems, which also typically involves an assessment, probably on a monthly basis – effectively a dues increase. Others yet opt to continue “kicking the can down the road” in order to avoid assessments or dues increases, which is typically an unsustainable strategy and often leads to the failure of the club. Another option exists for some clubs. Those with desirable facilities, a strong revenue stream and in good markets can perpetuate their clubs by transferring ownership of the club, either through sale or otherwise to a professional management firm that agrees to invest resources into capital improvements. While this option can sometimes be tough to swallow, it relieves the members of the responsibilities of running the club and provides the freedom of enjoying it. Typically, there are no assessments or risk and the club is run more like a business. Not for every club, this option can perpetuate the life of some clubs where they might otherwise fail. Infrastructure isn’t sexy, and often gets ignored, but it’s not cheap either and when an irrigation system or HVAC system quits, the club is left with no options that could become catastrophic. Establishing reserves (“pay me now”) is far more preferable than not (“pay me later”). B R

larry hIrsh

Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www.golfprop.com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia. He blogs on variety of club and appraisal issues at http://blog.golfprop.com

noVember/DeCember 2016 | BOARDROOM

legal CommITTee |

Cyber hacking is serious business PRoTECT youR CluB - PaRT ii Clubs need to be educated, understand and be prepared about cyber security issues, as explained in Part 1 of this series. and they also need to “be insured and be diligent.”

robyn norDIn sToWell

Understanding your current cyber issues is required as a best practice and it’s also an important step before the club applies for additional insurance coverage. BE insuREd In the underwriting process for any significant insurance coverage, the underwriter may determine there is inadequate network security, information security, policies, employee training and other first lines of defense against hacking and other cyber risks. These can lead to rejection of coverage or higher premiums for the club. The insurance industry is evolving as cyber events occur and cases are settled. Keep in mind the long period of time that elapses between an event and the time the case is decided and taken up on appeal to decision (appellate court decisions having broader reach and holding much more sway than trial or district court decisions).

once the club (board and management) has become educated, shored up its current environment and policies, and obtained insurance coverage, it must continue to be diligent. have professionals review the environment and insurance regularly. support the general manager’s and senior staff’s ongoing education. For example, a recent 4th Circuit case essentially held that when a system’s vulnerability allowed confidential information to be seen on line by unauthorized users, the information was “published” for the purposes of the company’s CGL policy. 66

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On the other hand, the Connecticut Supreme Court found that when tapes of confidential information fell out of a contractor’s van on the highway there was no evidence of “publication” by the company (any subsequent publication by a third party would fall outside the company’s CGL covering publication by the company). As a result of such cases and the other developments in the cyber arena, insurance companies are writing more exclusions into CGL policies and some are offering cyber policies. Much of the alphabet soup of insurance coverage may come into play, depending on the specific facts of the breach: CGL, D&O, E&O, crime, etc. Cyber insurance is an additional line of defense. Bottom line: the club should regularly evaluate all of its insurance coverage, at least annually and every time the club adds a new facility or major service, and cyber coverage should be part of this regular review. Many businesses have a long-tenured insurance agent. However, it is crucial to confirm that the agent or someone in that shop has expertise to ensure the club has exactly the coverage it needs. There are attorneys with expertise in insurance coverage, and cyber coverage has become a subspecialty. I rely on my partners with that knowledge to be sure my club clients understand the insurance coverage they do and do not have. Important considerations include the scope of coverage and the exclusions and riders to the policy. The club should be sure it has coverage for the various areas of expense it might incur. There are expenses related to the breach itself, such as forensic examinations, paying extortion payments, restoration of systems and remediation costs. There also may be public relations expenses, such as media communications. Expenses related to the customers (in this case, club members) could include offering credit monitoring or restoring stolen funds. Regulatory obligations and expenses include notifying affected consumers. Depending on

the severity of the issue, there likely will be attorneys’ fees and fines. There are numerous policy forms in use, each with their own definitions and other specific terms. Many policies have exclusions that should be considered carefully, such as limiting the retroactive effective date (many breaches go undetected for long periods of time). They may exclude employees’ personal devices (and many club employees use a personal device for company business). Ask questions about the cloud and terrorism coverage issues. Look at the sub-limits within the coverage. Similar to per occurrence sub-limits, the cyber policy may have categories of expenses inside that have individual caps. Remember that many policies incorporate the application by reference, so it is crucial that the application be entirely correct and complete. The application asks about the club’s policies, so a thorough review of policies and employee training content should be undertaken well in advance of applying (see Part 1, BoardRoom magazine, September/October 2016). Understand the requirements to keep the coverage in place, such as complying with certain best practices. Bring in all the assistance you need to get it right or you could be paying for a policy that will not pay you when you need it.

Review the club’s CGL coverage at every renewal. Companies are adding exclusions that you may not see at first: narrowing the definition of publication or advertising injury, or excluding certain electronic data. Similar limits may occur in D&O or other policies, so check them carefully as well. BE diligEnT Once the club (board and management) has become educated, shored up its current environment and policies, and obtained insurance coverage, it must continue to be diligent. Diligently enforce the policies. Have professionals review the environment and insurance regularly. Support the general manager’s and senior staff’s ongoing education. Be sure you monitor the implementation and enforcement of all relevant policies. This is an ongoing area of concern with significant potential risk, so it deserves the board’s and management’s attention. B R Robyn Nordin Stowell is a partner in the law firm of Sherman & Howard L.L.C. in Scottsdale, Arizona. Robyn may be reached at (480) 624-2736 or by email at rstowell@shermanhoward.com. Fred Santarsiere, CINO Security Solutions, may be reached at (516) 932-0317 or by email at fsanta@cinoltd.com

In the club foodservvice industryy,, taste is paramount. And whether yours runs toward casual or formal, with High End Uniforms, it ’s always impeccable. From single pieces to full uniform packages, we create industry apparel that is consistent in the to bear your company ’s name while conveying the uniquee personality behind it. Visit V isit us onliine to see our collection. WW W.HIGHENDUNIFORMS.COM

noVember/DeCember 2016 | BOARDROOM

housE committEE

engage your members By inCoRPoRaTing THEsE ToP CulinaRy TREnds are you interested in further engaging your members in your club’s food and beverage program? Review and incorporate these top culinary trend channels to engage and delight your members.

lIsa Carroll

Recently at the Culinary Institute of America, Terry Frishman (MBA Columbia Business School) shared top culinary trend channels that she has observed in her food consulting business, Culinest – a New York City-based culinary consultancy. During the talk, Ms. Frishman commented that diners primarily want to “feel safe, cared for and connected”, which epitomizes the reason for joining a club. Culinest’s 12 MegaTrends will resonate with any private club that is interested in delivering on those objectives. According to Culinest’s 12 MegaTrends diners want: 1. Absolutes/controls – Diners like a feeling of having some control over their dining experience. They want to know what they are getting. Ensuring consistent offerings and incorporating prix fixe menus are ways to provide that control. 2. Adventure – Often diners want to try something new, exciting and different. Consider using interesting spices, new and creative dishware, out-of-the box buffet presentations (say “no” to the traditional chafing dish), and pop up restaurant concepts to provide an adventurous experience for your members and their guests. 3. Comfort – This trend depends on the location of the club. Southern club members might enjoy southern comfort food while members in the upper Midwest might enjoy perch. Our clients are often looking for “comfort food made current” – food that is recognized but presented in new and interesting ways (combining the comfort MegaTrend with adventure). 4. Engagement and empowerment – Make dining an experience by offering an education. As Sy Sims said, “An educated consumer is our best customer.” Educate with cooking classes, action stations with chefs explaining the toppings or the process, and well-informed servers who inform as well as sell menu features. Empower by offering choices on how fish is cooked and choices of “killer” side dishes.

BOARDROOM | noVember/DeCember 2016

5. Convenience – More clubs are offering “grab and go” options through their halfway houses and fitness and tennis facilities. Servers, upon first approach to the table, can ask how much time members have for lunch or dinner to accommodate those members who want a quick bite versus a relaxing, complete dining experience. 6. To Graze and Snack – Tapas-style and smaller plates continue to grow in popularity. Instead of ordering one large plate of food, diners enjoy ordering multiple smaller plates and sharing. Not only is this less food, but it allows diners to try new things with less risk – they can be more adventurous without blowing the whole meal if they don’t like the dish. Many clubs offer both a smaller and a larger plate option for each entrée. 7. Health and wellness – As fitness centers are becoming more popular at private clubs, so too are healthier menus and offerings. Glutenfree, heart-healthy, brain-healthy, plant-forward, super foods including super herbs are more prevalent on menus in restaurants and in fitness snack bars. 8. Quality – Every club we conduct an executive chef search for is focused on quality in the products that are ordered as well as the execution of the dishes, meals, and banquets. 9. Technology – Improving efficiencies in the kitchen and dining room enhance the member experience. Technology can allow you to accomplish things in a new ways and improve the member experience – from ease of ordering, to reducing ticket time, to capturing member names and dietary preferences. 10. Transparency – Diners like to know where their fish was caught or farmed, what local farmers are utilized, and what ingredients are incorporated in their plates. Sustainability is important now more than ever – especially with younger members. Sustainability in fishing practices, lowering the carbon footprint of the products we purchase, and buying meat from producers where animals “only have one bad day” are important to members. 11. Values – Having, advertising, and living up to core values is extremely important to today’s

diners. Does your club have team core values that guide their actions? How about your F&B and culinary team? 12. Value – Finally if diners do not find value in the experience, they won’t want to return. Value affects all other trends. What is the value proposition at your club? We’ll discuss this topic in a future article. Terry Frishman also recommends applying multiple Culinest MegaTrends to creatively increase brand loyalty and engagement opportunities, as well as to innovate and meaningfully disrupt the food industry. For more information about Culinest’s 12 MegaTrends or to work with Terry Frishman, visit her web site at culinest.com or email Terry@Culinest.com. Culinest is a New York City-based culinary consultancy and educator. She has over 20 years of award-winning experience helping companies and entrepreneurs innovate, market and profitably scale their culinary businesses. Review Culinest’s 12 MegaTrends with your F&B team and challenge them to innovate your menu and event offerings to enhance the club experience and member engagement in your F&B program. B R 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. Terry Frishman can be reached at: (212-580-2737)

from Finance Committee | 64

club. In reality, boards should be considering the exact opposite, focusing on ways to raise the initiation fee. Such consideration necessarily will lead to a discussion of the club’s value proposition, which is exactly where the discussion should be. The goal of every club board should be to first understand its current Return on Investment in the club and then plan to increase it by investing in projects that will allow for increasing capital income – both initiation fee income and the amount of capital garnered through capital dues or assessments. Successful clubs have distinct value propositions that engage satisfied members and attract new members. Investment drives both financial success and member satisfaction. As we have shown, clubs with greater investment have higher financial returns. That is the goal of every business. B R Ray Cronin, co-founder and CEO of Club Benchmarking and president of Thorny Lea Golf Club in Brockton, MA.

noVember/DeCember 2016 | BOARDROOM

teChniCal perspeCtiVes |

Virtual Credit Cards WHY ISN’T EVERY CLUB USING THEM? Every once in a while, a new technology comes along that seems “too good to be true.” More often than not, that turns out to be the case, and the technology fizzles out because of feasibility or cost issues. Not so with virtual credit cards.

bill boothe

Here’s a technology that offers a huge upside with no real downside. Yet very few private clubs are taking advantage of this amazing technology. Virtual credit cards (aka VCCs) are just what the name implies – a credit card that is used by a business to pay vendor invoices online through the internet. It’s simply another payment option along with issuing a paper check or drafting the club’s checking account (ACH). But unlike other payment methods, VCCs offer a benefit that makes them seem too good to be true – rebates. On average the rebate is about one percent of the payment amount. What does this net out to for a typical club? Let’s do the math. Assume your club pays out $6 million in A/P invoices annually. Also assume that on average, 25 percent of your vendors will accept VCC payments. That results in $1.5 million in VCC payments each year. Multiply by the one percent rebate and the club receives a $15,000 annual revenue stream simply by paying with a VCC. And that’s it. There are no fees or expenses related to VCCs – just revenue to the club. So why are so few clubs using VCC technology? Here are some reasons we’ve heard: 1. “We’re concerned about security. We think paper checks are safer.” That’s a big no and here’s why. VCCs can only be used by authorized club personnel (usually just the A/P clerk and the controller/CFO) to pay vendors who are participating in the program. And VCCs can only be used through the club’s computer network (no cards are issued to individuals). But unlike traditional credit cards, a unique VCC number is generated for each payment. Once that transaction is complete, the number becomes invalid, eliminating the risk of a stored card number being stolen. VCCs are PCI-compli-

BOARDROOM | noVember/DeCember 2016

ant, the data is encrypted, and the data is not stored on the club’s computer system. Minimal security risk to be worried about. 2. “Not enough vendors will participate.” Wrong. The average participation rate in the private club industry is 30-40 percent of the “spend” – meaning 30-40 percent of the total amount paid out through A/P. 3. “We don’t have time to contact all of the vendors to invite them to participate.” No problem. Some VCC providers will make all of the contacts and do the on-boarding for you – at no charge to the club. Actually this is not much of a chore since so many vendors serving the club industry are already participating. 4. “The rebate isn’t large enough for us to take the time to set up a VCC arrangement.” Seriously? Specifics: If you have the Jonas club accounting system, CSI globalVCard has a robust interface to the Jonas A/P module, which makes the whole process a breeze. CSI also has club customers using Clubessential/ClubSoft, IBS, Northstar and other club accounting systems with easy-to-do file uploads. Unlike some VCC providers, CSI on-boards your vendors for you – saving you time and expediting your start-up. Of course there are VCC solutions other than CSI available to choose from – although none of them have the club experience of CSI. So if your club is not taking advantage of virtual credit cards, what are you waiting for? There’s a pot of rebate money waiting for you to collect! B R Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment. Bill can be reached at bboothe@boothegroup.com.

TECHNOLOGY COMMITTEE

top Cloud Questions Clubs ask - part iV In addition to death and taxes you can also count on computer hardware failing and software bugs plaguing operations. And now more than ever, clubs are implementing new technologies, which means more integration, training and moving pieces to manage. These are just a few reasons you need a service provider to professionally manage your club’s IT requirements. The common goals of the club and its IT provider should be to increase security and efficiencies, reduce occurrences and plan for quick remediation when something goes wrong. So question four: If we move to the cloud, will we still need our IT person or company? For the most part, clubs have four options to manage their IT requirements: Employee – Few clubs can afford the luxury of a full time IT manager and just as few have the actual need for one. Unless of course, you count the controller as IT because they, by default, generally wear that hat. Local IT company – By far the most common solution. When there’s a problem they come out and sometimes solve issues remotely. This model is about selling time and product. Or sometimes there’s a monthly fee, which includes a certain amount of support, with anything above and beyond added on an hourly basis. Local IT company plus the hosting company – IT companies offering hosting are almost always reselling someone else’s hosting platform, which has been marked up and partially managed between the two. Hosting company providing managed IT – Focused on hosting, they work with you to reduce the potential for onsite issues so they can focus on providing you with the hosted environment. Similar to a utility, costs are generally based on the resources you actually use and any onsite is billed accordingly. It’s important to understand why your IT provider may be opposed to cloud-based hosting, so don’t expect them to accept the idea with open arms.

The cloud can seem like a threat to many IT providers because of its efficiencies and potential cost savings to the client. Which makes perfect sense because it significantly reduces the amount of hardware, licensing and maintenance they’ll be able to sell you. Sometimes this can lead to a bit of a conflict of interest. And unfortunately for the club, the idea can be quickly rejected by a gatekeeper. Although common, this isn’t always the case and some providers see it as an opportunity to better scale their business. Full time IT Managers usually embrace the technology because it helps them focus on more user-based needs and creating efficiencies instead of dealing with the backend. They’re also focused on reducing the budget and eliminating unexpected capital expenses while maintaining a high service level. In the foreseeable future, you will still need an IT provider to come onsite from time to time. Hardware will need to be installed, hardware will fail, wires will be unplugged or accidentally cut and someone will need to help you. Decide what your club’s tolerance is for downtime and what your appetite for IT expenses are, then find a vendor whose model matches up. There are clubs who won’t open a box and others who will take a few minutes to troubleshoot with a remote provider…it all depends on what you’re willing to pay for and what’s expected for the money. Hopefully you and your provider are on the same page. There are a number of steps your club can take to increase security and efficiencies, reduce occurrences and plan for quick remediation. You simply need a good plan and a provider to execute it. B R

boyD Carr

Boyd Carr is the director of sales at Fortessa Hosting, Inc., a cloud-based hosting company helping clubs reduce their exposure to IT. Boyd can be reached at bcarr@fortessahosting.com or (949) 284-8808.

noVember/DeCember 2016 | BOARDROOM

tennis Committee | USPTA

tennis participation increases The good news about tennis these days is that the sport overall is relatively healthy, boasting a six percent increase in participation since 2008 while many other traditional sports have seen a significant decrease in play over that same time period.

John embree

It’s part of the news that came from the twoday summit that the Tennis Industry Association (TIA), which is the trade organization for our sport, hosts each September during the US Open Tennis Championships in New York. It’s an opportunity for the global leaders of the tennis industry (manufacturers, media, representatives from the NGB, tennis court builders, allied organizations, professional tournament directors, club owners/managers, agents, etc.) to get together for a meeting to hear about state of the game. It’s a forum where presentations are made by various experts that highlight current trends and new initiatives that will help grow our game while also celebrating the legends in the industry with the TIA Hall of Fame induction ceremony. I’ve always come away from these meetings with a renewed sense of purpose and a much better understanding of the issues that we face as a sport and what we are going to do about increasing participation. Sports Marketing Surveys, Inc., the third party provider contracted by the TIA to conduct a variety of surveys, offered some highlights that focused on consumer play, sales of equipment by the brands, facility growth, and the overall tennis economy. Total tennis economy: $5.94 billion, up 3.6 percent since the previous year. Total US participation: 17.96 million players, of which 9.96 million players are considered CORE (playing 10-plus times/year) • CORE players account for 94 percent of 446 million play occasions and 90 percent of all spending in the tennis economy ($774 million dollars) • There are 4.22 million youth players, with CORE juniors increasing by 5.3 percent • Cardio Tennis has 1.82 million participants at 2,306 registered sites • There are 695 colleges and universities that have club tennis programs, up four percent

BOARDROOM | noVember/DeCember 2016

compared to the previous year with 45,000 students playing • 2,150 courts were built or lined for 10 and Under tennis • 308,568 children participated in out of school programs, an increase of 15.6 percent Equipment sales unfortunately, are trending down, both at wholesale and retail • Racquet Unit sales were down 1.1 percent and dollar sales were off 1.5 percent compared to last year at pro/specialty retailers • Wholesale racquet units from all manufacturers to the trade were down 6.1 percent and dollars down 4.6 percent relative to 2014. • Wholesale shipments of youth racquets were also down nine percent in units and 5.7 percent in dollars for 2015 versus 2014. • Tennis ball shipments, which have always been the best indicator of play, were up modestly compared to 2014 at two percent in dollars, but the numbers for the first half of 2016 versus the first half of 2015 saw a sharp decline. That is obviously concerning. Tennis facilities: 71 percent of all tennis facilities indicated an increase in court usage vs. year ago and 79 percent of court contractors expect their business to increase in 2016 over 2015. • The average number of courts per facility increased 4.9 percent to nearly 11 courts So the picture of the tennis industry at present is a bit of a mixed bag, with some positive metrics in terms of participation, especially with young players, facility expansion and frequent play while the manufacturers/retailers are struggling to sell more product. Still, the fact is the healthful benefits of playing tennis are extraordinary and there is no other activity that promotes family, friends and fun like tennis. BR John Embree is CEO at the United States Professional Tennis Association and can be reached via email: john.embree@uspta.org or (713) 978-7782, ext. 117.

GSI EXECUTIVE SEARCH

Case stuDy

transition in management – board perspective This is the second part of two series article dis- key point to consider is to honestly conduct a governance self-audit. Did board actions contribute to the cussing transition in club management. transition? Was the club faced with inconsistent The first article written by my colleague, Ned Welc, direction and vision from a board level, which caused CCM, CCE focused on the impact transition has on a priority shift? Did the inability of the board to the club manager and what best practices should be achieve common ground regarding a controversial employed. This segment will focus on the impact policy cause personal agendas to surface? Club leadtransition has on the club from a board perspective. ership must take this opportunity to re-commit the Much print has been devoted to performanceclub vision and operational priorities. By conducting based issues leading to the termination of a club’s a self-audit/evaluation when transition occurs, the top executive. Communication strategies are criticalboard will unify around the new leadership team. ly important when transition is on the horizon. The Finally, proper succession planning is a common board and sitting manager should make every effort best practice among top preforming clubs that will to recognize and address the issues proactively contribute to long tenured senior staff at your club. before it gets too late. It is never good to hear a It’s critical that a plan be in place to recruit likemanager say I wish I had been aware of this point so minded strategic thinkers who will carry on the I could have had an opportunity to correct it. When club’s vision legacy. This will ensure the adopted the board does make the decision to move forward operational plan and vision statement is carried on with a new manager, one common transparent comwell past the current board’s tenure. True top permunication strategy is a top priority. Board commuforming clubs do not stop with board succession nication should include all stakeholders in the club planning alone, true club top performers carry the (all members, senior staff and club employees). By best practice to senior staff as well by ongoing including the employees in the communication, the development of the team. This includes earmarking board will instill confidence to those charged with funds so the GM/COO can properly prepare the maintaining operations during transition. Another team for the future adding to club stability. BR

Dan Farrell

insights

anD aCtions to help Club boarD members, general managers, anD management get better results at their Club.

have the right people on your team bus! Are there any departmental/operations concerns that just seem to percolate on the back burner of your club? You know, those few things that seemingly never get fully resolved. Not really?

miChael CranDal, Cng

Upon honest reflection, every club leader is likely to be able to identify at least a few things that on the surface may seem to be brick and mortar based or remotely related to club design, budget restraints, old equipment, etc. But, when you really think about the departmental/operations concerns that can face all clubs at some level, the greatest answers are not necessarily found in new designs, more revenue, or capital purchases. Providing that a business model is fundamentally viable when it comes to actual operations few problems actually exist, except people problems. Just ask yourself this question: “If, as if by magic, our club had all the right people in all the right places, who were all really focused and all excited about what they do, what then would happen to all those ‘problems’ of ours?” The short answer, in the vast majority of cases, is that they would ALL go away. If not immediately, with the right people on your bus, meaningful solutions would soon be forthcoming…solutions that fully resolve old back burner issues that used to be allowed to percolate. It’s an easy trap to concentrate on what is perceived to be departmental/operation concerns that are really not problems at all, not really. They are just symptoms of what really needs to be resolved, because it always comes down to people. You have people problems. I recently sent a short note of admiration to a GM/COO that I respect for successfully steering their club through several challenges that have been blinking on and off their radar screen for a few years. In large measure, it was through board and solid management leadership in concentrating on getting the right people in the right places that ultimately resulted in an enjoyable bottom line position of strength across the board of operations, member satisfaction and needed capital improvements.

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My note got an immediate insightful response: “Michael, I appreciate your note. It truly has been a great year and we continue to push to get better each and every day. We are now in a very strong position and hitting on all cylinders. The reason is that I finally have all the right people on the bus. It makes all the other things we do much easier.” To some an operational turnaround may appear as if by “magic.” But, as this GM/COO alluded, there is no magic involved at all. Instead, it is all attributable to leadership remaining focused on simply having the right people on the bus. Soooooo, when truly analyzing departmental/ operations concerns, think again and ask yourself if you may be distracted by symptoms. Instead, take a very clear look at the people on your bus. There is no magic involved here. Just make sure you have the right people in the right places on your bus. Postscript: Of course, simply having the right people in the right places in a vacuum is not enough in the absence of solid leadership behind the wheel. No way around it! You’ve got to ask: “Who is driving the bus?” Solid leadership must consistently steer in the direction of: • Hiring the right people and putting them in the right places • Developing, motivating and mentoring them • Culling the herd, when necessary. Building and maintaining exemplarily management teams is accomplished by identifying talent, mentoring them, and monitoring accountability for terrific results with a style of leadership based upon positive support and empowerment, rather than fear or micromanagement. B R Oh, and one more thing, just in case you’re wondering, 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 and his wife, Kim, reside in the Buckhead area of Atlanta, GA. Michael Crandal, CNG www.linkedin.com/in/michaelcrandal or (760) 464-6103, direct.

LEGAL COMMITTEE

smoky times CANNABIS (MARIJUANA) AT PRIVATE CLUBS As of May, 2016, almost 20 states had legalized cannabis use for medical purposes, four had legalized it for recreational use and numerous others had relaxed their possession laws. This trend continues with remarkable speed with several other states planning to seek voter approval to permit use, whether for medical or recreational purposes, or both. In November, Floridians voted on expanding existing Florida law, which already permits use for limited medical use. The legalization of cannabis raises some interesting issues for private clubs. Sooner or later the majority of club boards will need to consider whether to handle these issues and how they intend to address them. Discussions about cannabis can be tricky because they involve many conflicting federal and state laws. The most obvious conflict is that cannabis is illegal under federal law but state laws vary from absolute prohibition to legalization. Then, within each state, clean-air statutes and licensing requirements frequently overlap or intersect with the cannabis laws. Local ordinances add another layer of compliance issues to the mix. All of these laws need to be considered before establishing any cannabis policy. While parallels can be drawn between the use of alcohol, tobacco and cannabis, cannabis use touches multiple legal trigger points. When it comes to smoking marijuana, clean indoor air and smoke-free policies must be verified and compliance achieved. Other methods of ingestion such as pill forms of THC may not implicate the clean-air statutes but may involve licensing requirements similar to those required for the sale, service and consumption of alcoholic beverages. However, unlike alcoholic beverage licenses, the framework of licensure regarding cannabis use is not as well developed and requires careful navigation. As with many legal topics involving private clubs, an additional legal factor that must be considered is the private status of the club. As differentiated from private club status for tax purposes, the private status of the club for legal

purposes is an essential factor to consider when discussing cannabis. This is because the laws regarding recreational use of cannabis generally permit use in private places, as opposed to public accommodations. Failure to properly identify whether your club is a public accommodation rather than a strictly private club when formulating your cannabis policies could have severe legal implications. In addition to the purely legal concerns, various economic, societal and logistical factors must be considered. While some clubs may view allowing cannabis use as a potential means of attracting new members, or otherwise positioning the club as uniquely attractive in a particular market space, others may view it as terribly offensive and against the very essence of the club’s culture. If a decision were to be made to allow cannabis use on club property, what logistical factors would arise and how would they be managed? To what extent would physical barriers be required? Would designated smoking areas be established? How would any designated cannabis smoking areas be effectively and safely separated from other areas of the club in order to protect children or other non-users from secondary smoke or other potential negative consequences associated with permitting its use? It is difficult to predict exactly when the issue of cannabis will arrive in your boardroom, but eventually it will. Before any decisions can be made, a club must balance the potential upside against the risks of allowing marijuana. The risks should be carefully vetted by experienced legal counsel and options implemented only after full evaluation of the complex and rapidly changing regulatory framework surrounding cannabis use. Caution is advisable in these smoky times. B R

miChelle tanzer

Michelle Tanzer, Esq. arbitrates club related disputes for the American Arbitration Association’s (AAA) National Golf Industry Panel and authored “The Club Litigation Book: Keeping Clubs out of Court.” Ms. Tanzer is chair of the residential, resort and club section at GrayRobinson, P.A. and can be reached at (561) 866-5700 or via email: Michelle.Tanzer@Gray-Robinson.com. noVember/DeCember 2016 | BOARDROOM

on the Frontlines |

Creative meeting SETTING THE RIGHT TONE

maCDonalD niVen

General Manager Chris and the senior staff have been meeting during the week prior to the house committee meeting and are focusing on adding new and vibrant events to the club calendar. The intent is to add some energy to the club: not to necessarily eliminate the old standbys, but to find something exciting. It seems that the staff is not getting traction on anything new. At the house committee meeting, Chris brings up the same topic, and after an hour of discussion, nothing new arises. It’s very common and often very productive to count on direct reports for guidance and help in solving problems. However, relying too heavily on direct reports also carries some disadvantages, because this group generally tends to favor current operations, and will therefore defend the status quo or be reluctant to really open up about ideas other than the GM’s. There may also be reluctance to move out of their comfort zone of “same-old-same-old” and into an experiment that will certainly entail more work! With member committees, other issues may arise during brainstorming. Sometimes committee members, like staff, enjoy the established routines and are reluctant to try something new. As a recommending committee, they have some skin in the game, and trying something new also means a possibility of failure! Joseph Pistrui, in his Harvard Business Review (HBR) article, “To Seize the Future, Create a Leadership Circle,” suggests that forming a leadership group of 15-18 people with diverse backgrounds may help break through some of the characteristic problems of groupthink. Because this will be a select group meeting in an ad hoc format, Chris has the opportunity to set the template for the meeting. Bob Frisch and Cary Greene suggest in their HBR article “If You Can’t Say What Your Meeting Will Accomplish, You Shouldn’t Have It,” that there are two fundamental questions key to setting goals for meetings:

BOARDROOM | noVember/DeCember 2016

What do you want to have debated, decided, or discovered at the end of the session that you and the team haven’t already debated, decided, or discovered? What do you want the attendees to say when their team members ask, “What happened at the meeting?” Answering these two questions then allows for clarity in defining the work to be accomplished – the first of four important steps in structuring an efficient meeting, according to Liane Davey in her HBR article “A Step-by-Step Guide to Structuring Better Meetings.” Efficient conversation can be promoted by dividing the agenda into similar categories. It’s difficult to completely control the conversations, but categorizing similar topics makes it easier to stay on-topic. Most members will want to know the time length of the meeting: be clear on the intended meeting duration and stick to it. Finally, to make the meeting valuable, plan for what happens if all the topics are not covered. If time runs out, don’t try to force all the other issues; instead, set up another time to discuss whatever important issues have not been sufficiently discussed. Committees, however good their intentions, may wander off-topic. As a GM, it can be difficult to get the group back on track when the chairperson is also a board member. As the originator of the group, Chris can take advantage of being the “chairperson” and will be more easily able to keep the meeting focused. Setting the agenda through the use of the two questions and a solid structure will certainly be a good start. Perhaps by setting this tone, Chris can create the environment where members trust Chris to conduct an efficient meeting. B R MacDonald Niven, CCM, CCE can be reached at (510)-439-8522 or via email: mac@niven.cc. www.niven.cc

noVember/DeCember 2016 | BOARDROOM

GREEN COMMITTEE

how much Do you appreciate your locker room manager? “I’ve been in this business for over 30 years and I still don’t know what locker room managers do all day,” said the director of golf, looking the club’s locker room manager straight in the eye.

toDD DuFek

The DG had recently joined the club’s staff and it happened to be his first meeting with the locker room manager, who fell under the DG’s supervision. That may be a bit surprising, but unfortunately many directors of golf, general and clubhouse managers may not have a clear idea of what this manager’s role is or the variety of tasks they perform. That’s generally because as long as there are no member complaints, the assumption is often made that everything “over in the locker rooms” must be okay. The truth is that during a typical day in the busy season I’ll rotate through 10 - 14 hours, walking four to six miles a day greeting and kibitzing with members, cleaning and shining 100 pairs of shoes, managing my staff and restocking and straightening amenities. Still, some members are surprised by what I do. For example, when members that habitually play golf in the afternoon arrive in the early morning to pick up their clubs and shoes to play another course, they are shocked to see me and ask incredulously, “What in the world are you doing here so early?” What they don’t realize is that I show up before the crack of dawn every day to prep the locker rooms so that they are perfect before members and their guests arrive. John Fornaro’s article (“How Much Do You Appreciate Your General Manager?” January/February 2016) has inspired this one. It stressed that education and training offered through an association and annual conferences are beneficial – a must for general managers so that they stay on the cutting edge of the industry. The question for management is: “Should our club provide our locker room manager with the opportunity for that same education and training specific to their profession?” (By the way,

BOARDROOM | noVember/DeCember 2016

this does have a bearing on how much you appreciate your locker room manager.) But how? Many general managers may not know that the Locker Room Managers Association (LRMA) was founded in 1999. In fact, this organization is working toward making a national conference a reality, and a six-month training system is housed on its website (www.yourlrma.com). Clubs that have learned about the membership, education and/or training have taken advantage of them (nearly 200 in about 40 states). All too often, though, LRMs go through their professional life alone and unacknowledged. It’s important that locker room managers not be taken for granted. And, at the very least, are told that they are appreciated for the hours and hard work they put in during the club’s annual member - guest golf tournaments. Our DG does so over the PA system before the field heads out on the last day. There are two core facts about LRMs that shows their importance and why they should be appreciated: First, without the comradery between the locker room manager and the members in a place where they can truly be themselves, clubs across the country would not be the same inviting places to be. Second, if you really want to know what your facility is doing right or what needs to be improved, check with the gentleman that runs your locker rooms. He usually overhears it all from members visiting his department. For more information about the LRMA, contact me at tmdufek@cox.net. I’ll send you a free article entitled, “The 10 Biggest Mistakes Locker Room Managers Make and How to Correct Them” and a training module called, “How to Prevent Theft in Your Locker Rooms.” B R Todd Dufek is the locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona and is president and founder of the Locker Room Managers Association with a web site at www.yourlrma.com.

noVember/DeCember 2016 | BOARDROOM

green Committee |

superintendents’ profession has Come a long Way “Golf course superintendents manage the largest and most important asset at any golf facility,” said GCSAA President Peter Grass, the certified golf course superintendent at Hilands Golf Club in Billings, Mont. And with that well know fact has come a great deal of responsibility for golf course superintendents over the years, and especially this year as the Golf Course Superintendent Association of America celebrates its 90th anniversary. Today, the modern American golf industry has grown to include roughly 15,000 golf courses and two million employees, who annually are responsible for $69 billion in economic impact and contribute $4 billion to charitable causes. “The profession has come a long way. We can be pleased with the playing conditions we deliver for today’s golfers. But we are even more pleased with the environmental stewardship of our members, and how they care for

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the land and our natural resources,” expressed President Grass. Water resources have increasingly become a major focal point for golf clubs, as well as other businesses and communities, as they struggle to find usable sources to meet daily demands, especially in part of the country that have faced several years of drought conditions. Indicative of that stewardship is a recent national study that shows golf course superintendents are using 21.8 percent less water than eight years ago. The study showed another positive trend in that the use of reclaimed and recycled water for irrigation has increased. Superintendents also continue to use the latest research findings and equipment, such as moisture meters, to help them conserve water. The Golf Course Superintendents Association of America (GCSAA), which was formed in 1926 by Englishman John Morley to further greenkeeping ideas among middle America golf courses. Morley, who was a vegetable grower and greenkeeper at Youngstown (Ohio) Country Club, would hardly recognize the organization he formed. First known as the National Association of Greenkeepers of America, the group started with 60 greenkeepers coming together in September, 1926, at Sylvania Country Club in Toledo, Ohio, to share ideas. Today, GCSAA has 17,500 members from 72 countries, and its members are science-based college graduates who manage all aspects of golf course management, from agronomics to environmental sciences. Its members have often been called the game’s unsung heroes, but the

late Arnold Palmer recognized their true sig nificance to the game. “The Golf Course Superintendents Association of America and all golf course superintendents are probably the most important entity that we have in golf… The conditions and the golf course’s beauty, the environment, the wetlands, everything depends on their perseverance and their knowledge and the work they do to maintain the golf courses,” said Palmer, whose father, Deacon, and younger brother, Jerry, were both superintendents at Latrobe (Pa.) Country Club. Morley, who was commissioned as an honorary Colonel by the governor of Kentucky, served as the association’s first president. He was dedicated to advancing the profession, visiting more than 200 golf courses to help build support for the new organization. Morley might also applaud GCSAA’s alliance with other golf organizations, including the PGA Tour, the PGA of America, the U.S. Golf Association, the National Golf Course Owners Association and the American Society of Golf Course Architects. He served seven years as GCSAA president. Current CEO Rhett Evans oversees a staff of 87 from association headquarters in Lawrence, Kan., including nine field staff representative who are heavily engaged with 99 local chapters nationwide. The association also presents the Golf Industry Show each year, and welcomes nearly 14,000 attendees and includes the GCSAA Golf Championships, four days of educational seminars and sessions, and an unparalleled trade show experience. B R For further information, contact Craig Smith, director, communications and media relations. He can be reached at (800)472-7878, ext. 4431 via email: csmith@gcsaa.org

GREEN COMMITTEE

effective Course agronomic programs require science How can we achieve the healthy putting and playing surfaces golfers seek so much today? Since founding the International Sports Turf Research Center, Inc. (ISTRC), [pronounced: istrik] 26 years ago, my staff and I have had the opportunity to look at the physical properties of thousands of greens to try and understand the role physical properties play in the healthiness of the turf. Our sole purpose is to monitor the physical properties of sand and soil based root zones and to understand what the real life physical properties are that lead to healthy putting and playing services and what real life physical properties lead to the failure of our turf. We’ve analyzed greens from some of the oldest courses in the world including courses designed by Herbert Leeds, Willy Parks Jr., Donald Ross, and Alister Mackenzie, as well as modern day courses designed by Jack Nicklaus, Tom Fazio, Arnold Palmer and Robert Trent Jones Jr., to name a few. From the old and the new we’ve had the opportunity to monitor the aging process of all types of golf greens throughout the world, and from this experience we have compiled and continue to compile information that has proven to be of tremendous value to the golf course superintendent, general manager, green committees, owner and anyone else who has the responsibility of making decisions affecting the quality of our course. The USGA recommended guidelines are a very good starting point for new green construction. However, as greens age the physical properties change and this change in physical properties is what must be understood in order to maintain the quality of putting surfaces we all like to play on. The lack of knowledge about physical properties as they exist in the field is no one’s fault. I’d like to point a finger at someone for this lack of information but there’s no one to point a finger at. Over the years the topic of real physical properties has been swept under the rug and only

referred to in broad terms, much like my Aunt Sally, the existence of whom the family would rather not acknowledge. It’s important that we all understand the three properties involved in maintaining turf on a golf course: 1) physical, 2) chemical and 3) biological. If the physical properties are out of balance than we can forget the chemical and biological because they cannot perform the functions for which they are intended. Everything is dependent on the physical properties being balanced and it is the one area that’s been misunderstood for the last 50 years, because of lack of knowledge. Since the inception of sand-based greens, we’ve been dictating to the greens what we are going to do for aerating and other practices. That’s like performing surgery on a patient when we don’t know exactly what the problem is. It’s time we started listening to our greens by monitoring their physical properties on a regular basis and using that information to make decisions for the next 12 months or until we monitor again. ISTRC’s data base, which is the largest and most complete record of on-going real physical properties in the world, is our most valuable resource for an effective monitoring program. How can we have an effective agronomic program from year to year to year without monitoring? We can’t. The future based on science begins here. In future issues we’ll cover in detail the three major causes of green failure and what we can do about it. 1. Organic Matter 2. Gasses 3. Irrigation B R

DaVe Doherty

Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil based greens. He can be reached at (913) 706-6635 or via e-mail: daveistec@hotmail.com Web page: www.istrc.com

noVember/DeCember 2016 | BOARDROOM

GREEN COMMITTEE

membership sales and operations A PERFECT MARRIAGE One of the most valuable lessons I learned over the past 25 years being involved with private club membership sales throughout the United States is that the relationship between sales and operations is critical to the success of any new member recruitment effort.

Jim allison

While it sounds simple it’s amazing the number of clubs that struggle with leveraging the opportunity of these two teams working together towards a common goal. As with many issues communication or a lack thereof seems to be the primary culprit. This results in a dysfunctional relationship that can prevent a club from meeting or exceeding expectations in membership sales. The first step in aligning sales and operations is to set the right expectations up front so everyone understands and accepts what the end goal is. The management team should know what the annual budget is for new member sales and the value attached to those sales. It should also be acknowledged that without the assistance of the operations team the chances of delivering the needed sales results diminish significantly. All co-workers should understand that growing memberships impacts revenue opportunities in food and beverage, golf operations and ancillary spending throughout the club. The club’s general manager should drive these conversations to obtain buy in from the entire team. The club’s front line coworkers can be the best conduit to help communicate to the membership any message that needs to be delivered in terms of member recruitment activity (i.e. a new referral program, new member incentive campaign or prospect event that is upcoming). The sales team may have to develop the script but who better to promote the plan then the people who come face to face with members each and every day. Front line co-workers should always know what sales activities are taking place each month and embrace the role they play in the execution of those activities. Golf operations is another area where the sales team and the golf staff should be aligned

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and working as one. The best way for a membership director to become educated about the golf course is to have the head golf professional walk through each hole and give their perspective on playability, design, key features and what members of all skill levels like about the course. This information can help in preparation for course tours and future prospect conversations and will only enhance the chances of closing the sale. Many times the first point of contact for a potential member is outside services or the golf shop staff when they check in for a trial round. First impressions are important in how a prospect feels about joining a club and the golf operations team’s participation will impact the results of that first engagement. Sometimes there is a disconnect between the membership sales team and golf course maintenance, which is ironic since both depend on each other’s success to achieve their expected results. Course conditions directly impact the ability to sell memberships and successful sales campaigns and membership growth can dictate expense levels available to maintain the golf course and the funding of capital projects. So who better to educate the membership director on all aspects of the golf course (i.e. current conditions, types of turf, maintenance practices, green speeds, playability and capital projects) than the course superintendent. These are just a few areas where a fluent and cohesive relationship between membership sales and operations can really matter in the success of a club. Embracing a common vision between key departments and sales can be the difference maker in driving membership sales resulting in a perfect marriage between membership sales and operations. B R Jim Allison is vice president of business development, Golf Maintenance Solutions. He can be reached on his cell phone: 480-225-9680 or via email: jim.a@golfmsolutions.com

GREEN COMMITTEE

state of the industry BETTER DAYS AHEAD The last few years have been quite a challenge for the golf industry for myriad reasons: • Less disposable income for many who played golf and also many others who might have considered taking up the game. • Golf courses have been overbuilt and there has been declining play. The result has been a much needed downsizing of the industry. Successful operators and clubs have had to reinvent themselves to attract business and members. RENOVATION AND RESTORATION After a reduction in total golf courses it became evident that competition for golfers would be very important for remaining properties to survive. Knowing that the golf course is the reason that people come to a club it has become extremely important to provide the best golf courses possible. This has resulted in many golf course renovations or restorations across the country. Contractors and architects are busy today with much more renovation work then new course construction. The addition of forward tees and even some course lengthening has brought more challenge for the better golfers and also provided shorter courses for youth, new golfers and seniors. Proper placement of bunkers to challenge the better players has also been quite popular. The upgrades have had a short return on investment as clubs see more play and fuller membership rosters. In some cases, golf courses have opted to reduce irrigated acreage because of both drought considerations and merely the cost and availability of water. In general, many courses are putting on a “fresh coat of paint” and turning 100-year-old courses into gems once again. INFRASTRUCTURE When times get tough in golf there has normally been a reaction with the reduction or elimination of capital expenses. This includes the fleet of equipment and items like irrigation systems, turf care facilities and upgrades on wash stations and mixing/loading pads for plant protectants.

Purchasing a new fleet of equipment can vary but figure on $1-$2 million for a fleet to maintain your golf course. Equipment, on average, has a life expectancy of 10 years. Many courses have opted not to buy any equipment for six to 10 years. The overall cost to maintain antiquated equipment is not a wise use of funds. In the last few years I’ve seen an uptick of clubs re-investing in their fleets to get things back on track. Many older maintenance facilities do not meet current standards for health and safety requirements and are not updated with fire control that many insurance companies require. Mixing/loading pads should also meet state requirements. Underground storage tanks are also something that should be upgraded or converted to above-ground storage tanks. Irrigation systems have roughly a 20-year life expectancy. Spacing of heads is much better today than two decades ago and the control systems are also much better. At $1-2 million for a system it is surely a big ticket item. However, dividing that cost over 20 years gives a more accurate figure of what it costs to irrigate your golf course, without the cost of water.

bruCe r. Williams

BRIGHT FUTURE Those clubs that have taken a logical approach, to making their golf courses the best they can be, are doing well. My suggestion: Develop an overall business plan including the many items mentioned here and then prioritize them. It may take a five to six-year plan but set aside the dollars and re-invest it in your most valuable asset, your golf course. In the last few years survival has been the key to keeping the doors of many clubs open. Now that those clubs have done well it is time to move into the next phase and plan for the future. Seeing rounds of play up and price per round of golf going up shows stability in the industry. BR 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

noVember/DeCember 2016 | BOARDROOM

GREEN COMMITTEE

grooming the green Committee Slotting member volunteers into committees that borrow from an individual’s professional expertise is common practice in the private club industry.

JeFF spangler

Although it’s not required, many committees attract those who fit into the responsibility: Lawyers for ways and means, CPAs for finance, event planners on the house committee, and maybe advertising and public relations sp ecialists designated to the communications committee. Following this logic, wouldn’t it make sense for a club to identify member agronomists for the green committee? After all, how else could committee members be expected to direct such critical components as chemical use, soil types, surface drainage, microclimates, landscaping, air circulation, bunker engineering, and equipment – to name a few? Although it would be difficult to argue the benefits of such a match, the chances of locating a member who is also an agronomist are rare. But fortunately, this not the responsibility of the green committee and, rather, should be guided by the stewardship of the superintendent. A spot on the green committee requires only a few traits that bode well, regardless of a committee member’s area of responsibility. Among them: Objectivity, vision, discipline, and a passion for maintaining the highest quality end result available for the club. With a purpose of assisting the board and management in ensuring that the club has a top quality golf course and grounds for members of all competence levels, the green committee is an advisory group that speaks to the board, not for the board. However, often green committee meetings are over-run by well-meaning but misinformed members, course modifications are started and stopped on an annual basis, and the superintendent can barely get an informed word in edgewise, let alone be allowed to aerify the green, when necessary.

BOARDROOM | noVember/DeCember 2016

How do things get off track? Put simply, it’s just human nature. Many times, subjectivity and ego get in the way of good intentions, creating the perfect growing conditions for personal agendas. It’s difficult to stop thinking about what’s on the other side of the fence or featured on national television and not desire the same for your own club. Some believe that a few hours online can take the place of a seasoned delivery of scientific expertise – a practice akin to surfing WebMD in order to self-diagnose a condition and ascertain treatment before stepping foot into a doctor’s office. If this sounds familiar, following a few best practices can get a green committee back to the work it was intended to do: 1. The board, along with the superintendent and green chair should define a three, five and 10-year plan for the course and grounds, ensuring against disruption by the personal whims of a committee member or chair. This planning should delineate the day-to-day maintenance and the overall agronomic plan as formulated and advised by the superintendent. It will also help the club plan for major capital expenditures as infrastructure and playing surfaces age. Irrigation, green resurfacing, tees, fairways, bunkers, drainage, and cart paths should be addressed. 2. Since green committee members and the chair hold the position for such a short time, each incoming committee should establish its own one-year strategic plan that coincides with the master plan. 3. Committee members should be jointly selected by the chair and superintendent from a diverse cross section of playing abilities and interests. 4. The one, three, five and 10-year plans, along with issues/solutions and updates should be proactively and consistently com-

municated to the membership. It is critical that the board and the membership at large understand that the green committee is intended to be a conduit of information between the membership and the superintendent, through the green chair â&#x20AC;&#x201C; but the Superintendent is the expert who carries out the wishes of the board as determined in the long-term plan. Feedback, ideas, and requests are brought up from the membership through committee members and delivered to the chair and superintendent, whose response is then delivered by committee members back to the membership. 5. The chair should work closely with the superintendent, perhaps preparing for meetings ahead of time in private, and also facilitates the dialogue during meetings which provides additional support to the Superintendent. Subjective hearsay, unrealistic expectations, personal agendas, and lack of governance structure within the green committee will wreak havoc on a club â&#x20AC;&#x201C; just as it might with any committee. The good news is that agronomy is a science and a well-qualified superintendent is the best individual to be trusted with the health and care of a clubâ&#x20AC;&#x2122;s course and grounds. With the proper support from the board, chair, and management company (if applicable), the superintendent will be provided with the right environment most conducive to success. B R Jeff Spangler is the senior vice president of science & agronomy at Troon and can be reached at (480) 477.0415 or at jspangler@troon.com.

noVember/DeCember 2016 | BOARDROOM

Culinary anD Catering | ACCP

the impact of the Details We remember experiences because of the impact they have on our lives – emotionally and physically. But do we remember the details of that experience because of that impact or do the details actually create the experience and therefore the impact?

lynne laFonD DeluCa

Last issue, in writing about creating dynamic “retention-focused” member events, I concentrated on the creation of the calendar and the steps to go about doing that. And in speaking quite a bit recently about the experiences we create for our club members– the events, the dining experiences, the culinary adventures, the connections we can curate between the members through shared interests, it all got me thinking about the details.

events with impact appeal to all of your senses. they create a comfortable environment to interact with others while at the same time provide the dynamics that get people talking. What events would your members find fun, valuable and engaging? Can you get members involved in the planning? have you done surveys or conducted focus groups? Can you surprise them with some fun “pop-up” events featuring a trending brand or local chef? pay attention. your members will tell you what they want if you ask. In talking about the impact of these experiences, it brought forth some thoughts that I learned from my Dad – a Marine who served in WWII in the South Pacific (I only say “was” because he passed away a couple of months ago. Otherwise I would say “is”, because “once a Marine, always a Marine”). 86

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My Dad was 92 when he passed away, but when he spoke of his experiences in WWII, more than 70 years ago, he remembered everything in extreme detail. How is that possible? What happens in our minds to remember in such detail? It really got me to thinking about the impact that a meaningful experience, whether positive or negative, can have on our lives and because of the impact, the detail that is remembered. Fast forward to today, and to the experiences that we create in our clubs every day for our members. If we are effective in what we set out to do – create experiences so meaningful that members stay at our clubs for a lifetime, then we must pay attention to the details, because they will remember the details. We must raise the bar and the expectation daily and we can only do that as industry leaders. Our staff and members take their lead from the club’s management and department heads, so we have an extreme responsibility not to settle for a mediocre member experience, or mediocre service, or mediocre employees. When we set the example and cultivate an environment where creativity and personal, meaningful experiences thrive, then we are acting as good leaders. So, start paying attention to the details. Details in every aspect of how you operate your club, from the very first welcome to your new members, to every single member encounter at the club, to every detail of every event you host for your members. Have you anticipated all of their needs? Have you exceeded their wildest expectations for a fabulous event? Events with impact appeal to all of your senses. They create a comfortable environment to interact with others while at the same time provide the dynamics that get people talking. Dynamic events do not have to mean big budgets. Details can be created through partnering with our industry vendors to provide specialty l inens, lighting, fun rental furniture, entertainment and gifts. When we refer these partners to our private events, they in turn like to help us out by providing special pricing for our member events.

The details start even before the “design” of the event, though. The detail starts by thinking about event types that really appeal to your membership. What events would they find fun, valuable and engaging? Can you get members involved in the planning? Have you done surveys or conducted focus groups so that you are planning an event calendar based on what you know they will love? Can you surprise them with some fun “pop-up” events featuring a trending brand or local chef? Pay attention. Your members will tell you what they want if you ask. Sometimes even if you don’t. Then, take those thoughts and ideas and run with them. Take them to a level that will surprise and delight. The impact of a full and engaging member event calendar, filled with events packed with amazing details will affect attrition as well as private event revenues. Once members see what your club is capable of offering, they are more apt to confidently book their private events with you as well. Aside from improved attrition and a financially stable club, having a reputation for hosting the best events in town also tells your members how forward thinking, relevant and adventurous your club can be in entertaining and culinary trends. And, keeps them coming back for more. So take a look at your next member event. Is there enough detail? Is it memorable enough? If not, do not settle! Back to the creativity drawing board! Every event counts… #NoEventLeftBehind B R Lynne LaFond DeLuca is the executive director of the Association of Club Catering Professionals and a private club industry consultant. In 2014, Lynne was named “One of the Most Influential Women in the Private Club Industry” by Boardroom magazine. and most recently she was awarded the Gary Player Educator of the Year Award from BoardRoom magazine in 2016. You can reach Lynne at Lynne@TheACCP.com, or visit the website www.TheACCP.com. noVember/DeCember 2016 | BOARDROOM

WINE COMMITTEE

the greatest Wine Drinking generation WHICH ONE IS IT? Three major age groups currently challenge for this title.

steVen poe

Millennials were born between 1981 and 2000. Generation X preceded the Millennials from the early 60s to the early 80s, and Baby Boomers were birthed from the “Greatest Generation” as referred by Tom Brokaw in his book by the same name, between 1946 and 1964. And, if you were to place in an online search engine – “wine, Baby Boomers, Generation X (and) Millennials,” you would see an extended vine of articles debating which age group is outdrinking the other. For now, let us simply concede that all three are major consumers of the noble juice, yes? We start with the Boomers. Is it a coincidence that people are living longer than at any other time in human history? As wine enthusiasts, we like to think that partaking in moderate amounts of wine on a regular basis may play a part in prolonging life. Evidence suggests that a glass of red wine per day can be beneficial in lowering cholesterol, improving overall blood flow, and reducing the risk of heart disease. Louis Pasteur once wrote, “Wine can be considered with good reason as the most healthful and hygienic of all beverages.” But, whether for health or for pleasure or both, one thing is certain – the ‘boom’ of wine sales in the United States is due in large part to this demographic. Baby Boomers do, in fact, represent the group most likely to drink a glass of wine every day. They remain dedicated to the tried and true varietals including Cabernet Sauvignon, Pinot Noir, and Chardonnay, from regions traditionally known for producing the best examples of each – California and France – and are most likely to have vast cellars in their homes. Millennials habits are more difficult to define. They tend to be more adventuresome in all categories of beverage consumption including ciders, microbrews and craft cocktails. Pricing is not a determining factor.

BOARDROOM | noVember/DeCember 2016

Instead, the wine should be from eclectic locations and taste delicious – Chardonnay from New York, Pinot Noir from New Zealand, and Cabernet Sauvignon from Washington. Millennials will be quick to try far out grapes like Mencia from Bierzo in Spain. Sweeter wines like Moscato are popular, too, as well as sparkling wines and even rosés. Coincidentally, Millennials have a rather rosy view of the future, too. Generation X is the middle child of the group, moving into its prime money-making phase of life between 40 and 50 years of age. Quality over quantity seems to be the primary theme, here. With this information, how can we modify our wine program to meet the needs of each demographic? My answer, don’t over think it. First, pay attention. We have the advantage of repeat visits from our members, giving us a great ability to identify specific behaviors and interests. Be mindful of the younger generation and their tendency to try new and exciting wines who then share them with their social network. Intimate gatherings of 20 to 30 people can turn into an advertisement that reaches five times that number on Facebook and Twitter, for example. These are short reception-style events, 60 to 90 minutes long featuring tray-passed appetizers, music, and a groovy new wine station. If you want people to buy, you need to have something good to sell. The level of enthusiasm from attendees will help guide you in future wine list selections. As to the greatest wine drinking generation, let’s raise a glass to our combined efforts in maximizing member satisfaction, regardless of age – this is our challenge. B R Steven Poe is a master sommelier, beverage director at Big Canyon Country Club in Newport Beach, CA and can be reached at (949) 706-5270 or via email: spoe@bigcanyoncc.org.

innoVatiVeIDEAS

Champions run youth programs and events If you film it, they will come! And boy, what a turn out! Champions Run, in Rockvale, TN, has a young membership and so there are plenty of kids around the club. Ben Lorenzen, the pool and fitness director, took the reins with the youth programming, and because of his background in video production and multimedia, developed a unique movie camp that provided kids with an after school function to enhance their creative ability. Movie camp was also held on days when the club was closed and enhanced the clubâ&#x20AC;&#x2122;s operation by generating revenue. The eight-week program teaches kids about filming, script writing, acting, direction, graphic design, marketing and everything else that goes into a movie production. The kids write the

script, pick the parts, film and direct a 15-minute production. They are also responsible for promoting and advertising by designing professional film posters and producing movie trailers. About a hundred people attended the final red carpet premiere. The kids were surprised with a limo ride to the club, individual photos around the city and personal interviews on the red carpet. A oneof-a-kind program! Unique youth events such as the movie camp have

seen significantly increased registration over time. The members have been pleased and impressed, not only with the quality of the events, but also with the frequency and diversity. B R

success begets success at the Club at ibis The Club at Ibis, a Distinguished Club in West Palm Beach, FL, introduced Sip and Shop, a series of informal, weekly events that showcased one of The Spaâ&#x20AC;&#x2122;s vendor partners. Members were invited to enjoy wine and light appetizers while learning about the benefits of the products and service offerings. These, and other innovative events, have attracted new clients and spurred interest in experiencing a total wellness lifestyle at Ibis. Now the popularity and success of the Sip and Shop Series has prompted The Spa to initiate more event options for their members. Earlier this year, The Spa hosted its first Menâ&#x20AC;&#x2122;s Night Event, opening the spa for gentlemen clients only and offering complimentary drinks and snacks.

Betty Freytag, The Spa manager at Ibis, was surprised at how many of these men had not only never received a spa service before, but had never even been to The Spa at Ibis! With a special service menu created just for them, the men were introduced to spa treatments in a comfortable and informal setting and several recently have returned on their own. The Spa plans to continue hosting more events. Some, with vendor support, will offer promotional treatments with retail tie-ins and gifts with purchase. Other promotions will include special service and retail discounts that will encourage members to use the spa while providing them information on the health benefits of spa treatments to reduce stress and pain and stiffness. As more members choose to integrate the spa experience into their

weekly routines, the more they appreciate the value of having The Spa on property and truly take advantage of the wellness lifestyle Ibis offers. B R

noVember/DeCember 2016 | BOARDROOM

tribal magiC |

get sticky

gregg patterson

NEEDING BIG STICKY It’s tough getting people to join a club in these dog-eat-dog competitive times. But it’s even tougher to get the people who join to stay joined – paying dues, buying beers, playing golf, watching the tube and eating pizza. Every manager, owner, golf pro and maître d’ wants those who’ve “who’ve tasted the apple” to buy, keep and use a club membership. They want to create a “sticky” club experience that captures the newbies and keeps ‘em stuck, welded, hands tied and committed. Clubs that do Newbie right know that year one of the new member journey is the most critical time for making stick happen, when long term members are made, or lost. Capturing newbies for the long haul requires doing year one right, knowing the principles of stick and finding the right stick tactics for a given club. Here are a few year one, big stick principles and practices that need doing if managers, owners, investors, golf pros and sommeliers want to capture and keep ‘em long term. UNDERSTAND – THEY’VE GOT NEEDS The foundation of big stick is big empty, that emotional hole in the soul we’re born with, and hole is opportunity. Everyone arrives at the club empty, a weeping bundle of wants that need filling. People are lonely and want company. People are scared and want protection. People are insecure and want to feel good about themselves. People need status and want to be a valued somebody within a group. And people want the buzz – an energy transfer that’ll stimulate, enlarge and enrich their journey from cradle to grave. Empty is opportunity. Clubs with big sticky see the big empty opportunity and do what needs doing to satisfy the newbie’s big empty needs. APPRECIATE – THEY’VE GOT BUYER’S REMORSE Sticky starts the moment the contract’s been signed and the membership gets bought. Gremlins in the newbie’s brain are snickering – “wasn’t that the dumbest thing you ever did, buying a club membership in a world awash with pay-and-play opportunities?”

BOARDROOM | noVember/DeCember 2016

Overcoming buyer’s remorse is a critical part of big sticky, and beating down the gremlins of remorse is job one. A call needs to be made by the GM – “what a clever thing you’ve done.” A hand written note needs to be sent from the GM – “what a wonderful decision you’ve made.” A welcome into the club basket of goodies needs to be delivered with a hand written note – “glad you and the family are now part of our family.” A personalized email with photos of “the signing moment” needs to be sent. A note from the president needs to be mailed. Messages need to be delivered – “You did GOOD when you joined!!!” Clubs with “big sticky” erase buyer’s remorse. STICK REQUIRES – ORIENTATION The newbie paid the big bucks, you’ve squashed buyer’s remorse, and the real work of big stick begins. The first step in generating big sticky and filling the newbie’s big empty is the cultural orientation, delivered by the general manager and the management team. The orientation exposes the newbie to the innards of the club – people, stuff and ideas. The orientation creates a bond between the newbie, the GM and the management team. The orientation lets the newbie know they’ll never be alone again. The orientation is about the stuff and the nonstuff of club, a cultural orientation that enlarges and enriches the newbie’s club adventure, a preaching-teaching opportunity addressing the why of the club and the goods, services, programs, facilities and people expressive of that club’s why. Clubs with big sticky give the newbies a big orientation. THE WARM EMBRACE Newbies are vulnerable. They’re wearing big empty on their sleeves. They need to be engaged and embraced, made to feel appreciated, wanted and needed. They want…the warm embrace. Big sticky happens when relationships are created and warm embrace is delivered. And warm embrace relationships are the pot of glue that makes long term happen.

During the orientation the newbie’s story gets told and their photo gets taken and both are distributed – to the staff via the annotated member mug book and to the members through the newsletter, the weekly online member update and the website. Members of the management team become active intermediaries between the newbie and activity groups of interest to the newbie – be those groups the gym group, golf group, wine group or tennis group. Managers need to reach out and bring the newbie and the interested together. Staff know they’ll be the critical bump into others, serendipitous opportunities newbies are looking for when they arrive at the club. Newbies stay stuck when staff deliver the warm embrace – welcoming the newbie by name, engaging the newbie in conversation, giving the newbie the big good bye, sending them notes on their birthday, anniversary, promotion or kid’s graduation. The newbie needs to be seated immediamente on their committee of choice. Why? Because committees are a great way for newbies and oldies to meet, engage in substantive conversation and create working relationships. Why? Because committees are the ears of the club and need to know the newbie’s wants, needs and expectations to ensure the products delivered meet the newbie’s needs. Existing members who share the newbie’s interests need be prodded to reach out and engage the newbies, formally via assigned member ambassadors and informally during casual clubhouse encounters. Clubs with big sticky create staff / member / newbie relationships and deliver the warm embrace.

Step Two: meet their expectations. Know what they want and when they want it. And once known, documented and circulated, the staff need to do the stuff that needs doing to satisfy those expectations. Step Three: make their lives easier. Got kids? Provide babysitting. Want a foursome on Tuesday afternoons after 5:00? Find them. Make doing club easy. Step Four: make their lives better. Enlarge and enrich their life journey with the right goods, services, programs, facilities and people. Make club a necessary part of the newbie’s good life. Step Five: do it differently than the newbie can get it elsewhere. Find out what the competition’s doing then do it different. Clubs with big sticky manufacture five-step loyalty glue. STUCK Getting people to join is easy…soto-speak. Keeping the people who joined…is tough.

Sticky clubs know that newbies join for the stuff – but stay for the people. Sticky clubs know they need to do year one right. Filling the newbie’s big empty. Erasing buyer’s remorse. Orienting. Delivering the warm embrace. Creating relationships. Generating loyalty glue. And clubs that do big sticky right capture newbies, keep newbies longer, get newbies to use the club more and, when the newbie visits, to linger longer. So, ponder the principles of stick. Find appropriate to your club. And enjoy the journey… B R Gregg Patterson served the Beach Club of Santa Monica as its general manager for 33 years before retiring earlier this year. He’s also one recipient of Boardroom magazine’s Award of Dedication for 2015, for all 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

LOYALTY GLUE Now that buyer’s remorse has been squashed, orientation delivered and relationships created, management needs to mix up some loyalty glue to ensure that first stage stick becomes long term sticky. Step one: know the newbie, intimately as an individual and as a market segment. noVember/DeCember 2016 | BOARDROOM

from Publisher’s Perspectives | 10

Kapoor doesn’t believe the club’s ’modus operandi’ for board meetings should or must change if board meetings are opened to club members. “However, members need to attend only as observers and not as participants. The minute the president gives them the floor as fellow owners they expect their input to be part of the decision making vote. This would create anarchy,” Kapoor suggested. “I believe it would limit the amount of discussion in a meeting and members would be more fearful of being sued,” Welch stated bluntly. “Clearly, there are times when initial stages of an idea or concept can be fleshed out in a board room before the issue becomes more ‘public,’” opined Kuebler. “Sometimes, however, these types of discussion are stymied in an open forum session, or the initial idea is in a very early stage of development or consideration, and there is a concern that it gets out to the membership before being fully vetted and misinformation ensues. Additionally, there are some members who monitor meetings and have brought disruption to the overall meeting. There have to be clear rules of order.” Robyn Stowell, an attorney with Scottsdale, AZ-based, Sherman & Howard, says, “from a legal standpoint, the board needs to consider its legal and fiduciary duties. “For example, with meetings open to the membership the board must be very aware of confidential information and confidential issues. The board should also check the requirements set forth in their bylaws and in the local statutes. I have reviewed bylaws that specifically require the board’s meetings to be open to the membership. In some cases, state law may require open meetings including, for example, when a single legal entity is the club and the HOA,” Stowell explained. “Having open meeting may be inconsistent with the board’s desire to act efficiently. For open meetings, the board must consider how much information to provide to attendees or to the membership at large. For example, if you use a consent agenda, do you want to circulate all of the related reports ahead of the meeting or at the meeting?” she queried. “From those I’ve spoken to and with, the benefit appears to be the transparency of discussion and issues…and letting the members know that they [the board] don’t have a hidden agenda of any sort,” expressed Kuebler. “Most clubs that have opened their meetings, seem to have a relatively small group of attendees/monitors from the membership. In fact, a few managers have actually suggested to me that opening their meetings has reduced the amount of ‘grandstanding’ by some board members, so there can be benefits in doing so. “And as I mentioned earlier there have to be clear rules of order.” 94

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Kuebler doesn’t feel opening meetings will change a board’s operating methods. “Frankly, homeowners’ associations have had open forum for years and it typically keeps everyone on the agenda in better fashion, and meetings shorter overall.” Welch says that “If a club is required to hold open meetings I would follow the open meetings act. You must post the agenda a few days prior and members are welcome to sit in the room (not at the board table) and listen. “The only time they would be permitted to talk is if they have requested to do so (in writing) before the meeting or if they are specifically asked to state an opinion in the meeting. All reports to the board would be sent a week prior and most of the “board work” would be completed before the meeting.” Still, Stowell believes that “with all the arguments against open meetings, there are practical and political reasons that boards want to be open and transparent to the members. If the club has historically conducted open board meetings, the club might slowly evolve to occasional town halls or open meetings. “This allows the boards to operate very efficiently in its private meetings but to have an open exchange of ideas with the members at regularly scheduled town hall or open board meetings,” Stowell added. The fact is, transparency and accountability seems to be the main forces behind more open governance. And often the major reason behind open meetings is not to have people to attend but to seemingly offer greater transparency, which might also have been seen as giving greater accountability to a club’s members. The push for open meetings might also come because a club’s membership feels the board has handled an issue inappropriately, or the membership feels it hasn’t been consulted adequately, before a board decision was made. What does seem critical in the push for greater accountability, is the need to balance confidentiality with the desire for more transparent governance. “If boards and GM/COOs are doing a good job of providing consistent, insightful and beneficial updates of what occurs and why in each board meeting, it probably still makes sense to keep them closed in order to promote better candor and debate/discussion amongst the board,” Kuebler offered. “Re-evaluating communication methods and information emanating from each meeting is something that should be done by the president and GM/COO regularly to ensure relevance.” PUBLISHER’S FINAL THOUGHTS So where does the dust settle on open board meetings? Robyn Stowell raises a fundamental issue…know what your club’s bylaws say and be fully aware of local and state laws. Non-profit, tax-exempt (501(c)(7) corporations gen-

erally do not conduct their business (except under special circumstances), unless required by law. As Stowell has said in reviewing “bylaws that specifically require” open meeting, boards must consider carefully how much information is provided at the meeting. This includes boards being very aware of confidential information and issues. While it doesn’t really make sense to have private club board meetings open to members all the time, it does make sense to allow club members to attend some open sessions if for no other reason than to encourage member understanding. And certainly, as Tarun Kapoor has stressed, there must be protocols in place, “because the moment the president give them the floor as fellow owners, they expect their input to be part of the decision making vote.” That just can’t happen. And yes, open meetings might just allow for what Gordon Welch describes as a “strategic intervention… one or two individuals with nothing better to do than attend meetings and stir the pot.” If nothing else, open board meetings might well provide a chaotic disruption with no redeeming value. And just because it’s an open meeting does not guarantee an ‘observer’ – aka club member – the right to speak. Unquestionably when sensitive, confidential matters being discussed, meetings must be closed. I believe, a combination closed and open meetings can be a good thing for a private club, depending upon the circumstance, and if for no other reason than the fact it creates greater transparency, is more inclusive, and can negate dissent. And finally, open board meetings, when chosen selectively, will enhance member confidence in the club’s board and how members view their club. At least, that’s the way I see it! B R John G. Fornaro, publisher 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

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Club serViCe |

the state of the industry and breaking the glass Ceiling… The industry, my friends, is in good shape…for the moment.

Chris boettCher

I’m writing this pre-election and you’re probably reading post-election so the state may be different. But here’s a state to discuss: your relationship as a board member with your club manager. After participating in CMAA’s Governance and Leadership Summit facilitated by the Kopplin, Kuebler and Wallace team, and watching Jeff Morgan, the CMAA’s CEO, in action with his strategic plan, definitely made me feel more confident in the industry. I was, although, disappointed with the turn-out. Getting your club president to remove themselves from a busy day at work or at the golf course, is not easy to do. Did we really try to get them to come? Do the board members not get it? Do they not see this as an opportunity to support the manager? Or was it that they did not see a value? Or was it that the manager did not get up the guts to ask? The state of participation to expose our awesome education association to the group that pay for our dues, conference trips and fund the CCMs and CCE programs, was pretty sad. We got great education; highly educated people sharing it and topics so relevant in our industry that our club leaders would been so much better if they heard it. My point of the CMAA experience is connected. The relationships you have with your club managers, the state of their education and networking is so important. Other states? The state of private clubs is really taking a turn for the F&B team - the pressure is on (was it ever not on in F&B??). The articles and industry trends are taking F&B outlets for a ride. The real reasons people are coming to the clubs are in search of their friends and relationships. We all know that. As our tribal leader, Gregg Patterson says, “…people need ‘tribe’ more than ever, in a world filled with the impersonal (email, social media, etc.). People

BOARDROOM | noVember/DeCember 2016

desperately need eye-to-eye and person-to-person contact and clubs deliver. Now that I’m a member, I understand the power of people, the personal contact and the rubbing of shoulders and the warm hello. What clubs need to do in this needy world is provide goods, services, programs and facilities that encourage people to come together. And golf ain’t enough.” DESIGNING STATES “The private club industry, although facing generational challenges, is strong“ said Peter Cafaro, senior VP, Judd Brown Designs & Jefferson Group Architects in sharing an interesting perspective with me. “It is the individual clubs that vary in their ability to maintain strength. Those who are progressive in policy regarding women, juniors and the importance of non-golf activities – and members - will flourish while, with a few exceptions, those who cling to old school philosophies of exclusionism and ‚it ain’t broke, so don’t fix it’ mentality will not be long for the club world.” “Personally, I am hopeful for the future but understand the results of this November – no matter who wins - will likely have a significant effect on the club landscape!” Can you feel the love from these people? The opinions come from a veteran of our industry, and now a member, a vendor/partner. The definitive thread here is that the state of clubs really relies on a strong WHY: because of relationships. So when you get to the board meeting, remember, it’s not all golf, or tennis, or swimming. It’s leaning towards eating, fun parties, chatting and being where they all know your name. Lead ON!

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

noVember/DeCember 2016 | BOARDROOM

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noVember/DeCember 2016 | BOARDROOM

Steve Berlin (954) 614-1505 xhibtz1@xhibtz.com www.xhibtz.com

APCD ASSOCIATE MEMBERS & SPONSORS Attorneys Addison Law Firm 14901 Quorum Drive, Ste. 650 Dallas, TX 75254 Tel: (972) 960-8677 Fax: (972) 960-7719 Website: www.addisonlaw.com Email: clublaw@addisonlaw.com Contact: Randolph Addison, president

Club Advisory Services Club Consultants LLC 5121 Castello Drive, Suite 1 Naples, FL 34103 Tel: (239) 643-7800 Fax: (239) 643-7803 Website: www.clubconsultants.com Contact: Bill Wernersback, sr. mng. dir.

Club Neckties, Scarves, Emblems Stratton-Crooke Enterprises Inc. P. O. Box 215-H Scarsdale, NY 10583 Tel: (800) 732-9719 Fax: (914) 725-5196 Website: www.strattoncrooke.com Email: StrattonCrooke@aol.com Contact: Nancy & Jim Crooke

Club Services HFTP 11709 Boulder Lane, STE 110 Austin, TX 78726-1832 Tel: (512) 249-5333 Fax: (512) 249-1533 Website: www.hftp.org Email: Laura.Huffman@hftp.org Contact: Laura Huffman

Clubhouse Design Chambers 1800 Washington Blvd., Suite 111 Baltimore, MD 21230 Tel: (410) 727-4535 Fax: (410) 727-6982 Website: www.chambersusa.com Email: jsnellinger@chambersusa.com Contact: John R. Snellinger Peacock + Lewis Architects 1295 US Highway One North Palm Beach, FL 33408 Tel: (561) 626-9704 Fax: (561) 626-9719 Website: www.peacocklewis.com Email: Brian@peacocklewis.com Contact: Brian Idle

Clubhouse Architect Judd Brown Designs 700 School Street Pawtucket, RI (401) 721-0977 Contact: Peter Cafaro H. Anne Blakely Sciarrone Architecture P.O. Box 357 Decatur, GA 30031 (678) 632-2663 Contact: Anne Sciarrone

Clubhouse Furniture Eustis Chair P.O. Box 842 Ashburnham, MA 01430 Tel: (978) 827-3103 Fax: (978) 827-3040 Web site: www.eustischair.com E-Mail: fred@eustischair.com Contact: Fred Eustis

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Gasser Chairs 4136 Logan Way Youngstown, OH 44505 Tel: (330) 759-2234 Fax: (330) 759-9844 Web site: www.gasserchair.com Email: ksmith@gasserchair.com Contact: Kevin Smith

FOOD-TRAK®/System Concepts, Inc. 15900 N. 78th Street Scottsdale, AZ 85260 Tel: (480) 951-8011 x 8026 Fax: 480-951-2807 Email: nancys@foodtrak.com Website: www.foodtrak.com Contact: Nancy Shina, director of marketing

Outdoor Furniture Bambrella 6464 East Rogers Circle Boca Raton, FL 33487 Tel: (561) 288-8655 Website: www.Bambrella.com E-Mail: info@Bambrella.com

Consulting Clubwise Consulting 3507 Dunlin Shore Court Norcross, GA 30092 (770) 248-1047 Contact: Jerry McCoy Email: Cmaamcm@msn.com Denehy Club Thinking Partners 501 Kings Highway East 06825 (203) 319 8228 Website: www.denehyctp.com Contact: Dan Denehy McMahon Group 670 Mason Ridge Center Drive , Suite 220 St. Louis, MO 63141 Tel: (800) 365-2498 Website: www.mcmahongroup.com E-Mail: info@mcmahongroup.com

Course Maintenance International Golf Maintenance, Inc. (IGM) 8390 Champions Gate Blvd #200 Champions Gate, FL 33896 Tel: (800) 413-5500 FAX: (407)589-7223 Website: www.igminc.net Email: gregp@igminc.net Contact: Greg A. Plotner CGCS, EVP

Executive Search Firm Kopplin Kuebler & Wallace Southwest Office 7349 Via Paseo Del Sur, Ste. 202 Scottsdale, AZ 85258 Tel: (480) 443-9102 Fax: (480) 443-9642 Website: www.kkandw.com Email: dick@kkandw.com Contact: Dick Kopplin, partner Kopplin Kuebler & Wallace East Coast Office 132 Tulip Tree Court Jupiter, FL 33458 Tel/Fax: (561) 747-5213 Cell: (407) 864-6798 Website: www.kkandw.com Email: kurt@kkandw.com Contact: Kurt Kubler, CCM, partner Kopplin Kuebler & Wallace Cleveland Office 20373 Scott Drive Cleveland, OH 44149 Tel/Fax: (440) 783-1268 Cell: (412) 670-2021 Website: www.kkandw.com Email: tom@kkandw.com Contact: Tom B. Wallace III, CCM, partner

Food & Beverage Software Culinary Software Services 1900 Folsom Street #210 Boulder, CO 80302 (303) 447-3334

BOARDROOM | noVember/DeCember 2016

Interior/Architectural Design C2 Limited Design Associates 95 Reef Road Fairfield, Connecticut 06824 Tel: (203) 259-2555 Fax: (203) 259-2565 Website: www.c2limited.com Email: studio@c2limited.com Contact: Craig J. Smith Ferry, Hayes & Allen Designers, Inc. 1100 Spring Street, Suite 600 Atlanta, GA 30309 Tel: (404) 874-4411 Fax: (404) 874-1099 Website: www.fhadesigners.com Email: jbarret@fhadesigners.com Contact: Jeff Barrett, executive vice president HINT | Harris Interiors 49B Lenox Pointe Atlanta, GA 30324 Tel: (404) 403-2931 Website: www.hintatlanta.com Email: kelley@hintatlanta.com Image Design, Inc. 3330 Cumberland Blvd. Atlanta, GA 30339 Tel: (770) 952-7171 Fax: (770) 933-9093 Website: www.imagedesign.com Email: mfleming@imagedesign.com

History Private Club Historical 1100 South Coast Highway, Suite 309 Laguna Beach, CA 92651 Tel: (949) 497-6543 Website: www.privateclubhistorical.com E-Mail: Tom@privateclubhistorical.com Contact: Tom Neill

Kitchen & Banquet Spring USA 127 Ambassador Drive #147 Naperville, IL 60540 (630) 527-8600 Website: www.springusa.com

Locker Room Suppliers Sports Solutions, Inc. 2536 Manana Drive Dallas, TX 75220 Tel: (800) 969-8008 Fax: (214) 351-2609 Website: www.sportssolutionsinc.com Email: sales@sportssolutionsinc.com Contact: Laurie Schmidt

Lockers Salsbury Industries - Lockers.com 1010 East 62nd Street Los Angeles, CA 90001 Tel: (800) LOCKERS Fax: (800) 562-5399 Website: www.Lockers.com Email: Salsbury@Lockers.com

Xhibtz Contract Furnishing 11071 Indian Lake Circle Boynton Beach, FL 33437 Tel: (954) 614-1505 Fax: (888) 880-9124 Website: www.xhibtz.com Email: xhibtz1@bellsouth.net

Purchasing Group Essensa 555 West 57th St., 12th Floor New York, NY 10019 Tel: (866) 430-5330 Website: www.Essensa.org E-Mail: essensainfo@essensa.org

Research & Data Club Benchmarking PO Box 2082 New Castle, NH 03854 (603) 553-8958

Technology Culinary Software Services 2930 Center Green Court Boulder, CO 80301 (303) 447-3334 FOOD-TRAK®/System Concepts, Inc. 15900 N. 78th Street Scottsdale, AZ 85260 Tel: (480) 951-8011 x 8026 Fax: 480-951-2807 Email: nancys@foodtrak.com Website: www.foodtrak.com Contact: Nancy Shina, director of marketing Northstar 161 Kimball Bridge Road #200 Alpharetta, GA 30009 Website: www.globalnorthstar.com

Tableware/Menus Polar 2046 Castor Avenue Philadelphia, PA 19134 Tel: (800) 831-7823 Fax: (215) 535-6971 Website: www.the-polar.com Email: bradk@the-polar.com Contact: Brad Karasik Walco Stainless/Utica Cutlery 820 Noyes St. Utica, NY 13503 Tel: (800) 879-2526 Fax: (315) 798-3757 Email: susan@uticacutlery.com Website: www.uticacutlery.com Contact: Susan Martin

Uniforms High End Uniforms 5442 Gateway Plaza Drive Benicia, CA 94510 (707) 746-7011

635 King Street | Charleston, SC 29403 (843) 884-4007 | bauersales@bauerinternational.com www.bauerinternational.com

BOARDROOM MAGAZINE ADVERTISING INDEX aCCp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 addison law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 birchstreet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3 C2 limited Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Chambers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Clubessential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Clubster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Clubtec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Cornilleau usa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Creative golf marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Dei Food service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Denehy Club thinking partners . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Distinguished Clubs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92-93 epic golf insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 eustis Chairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

ezlinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Flora springs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 FooD-trak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 gasser Chairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 golf maintenance solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 grigg bros. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 gsi executive search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 high end uniforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 hint harris interiors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Judd brown Designs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 kathy o’neal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 kempersports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 kopplin kuebler & Wallace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 lichten Craig architects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 mcmahon group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

northstar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 peacock + lewis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 pga. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 polar menus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 reid Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 rogers mcCagg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 salsbury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 signera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 slimFold grills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 sports solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 susan bozeman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 troon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 uspta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Welch tennis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

BOARDROOM MAGAZINE COUNTRY CLUB INDEX matthew allnatt, gm/Coo, Jonathan Club, los angeles, Ca Chris boettcher, CCm, CCe, gm/Coo, burlingame Country Club, Ca Frank Cordeiro, Coo, Diablo Country Club, Diablo, Ca. ray Cronin, president, thorny lea golf Club, brockton, ma scott Domnie, gm, Fremont hills Country Club, los altos hills, Ca eric eccles, holistic fitness specialist, the Vineyards Country Club, naples, Fl betty Freytag, spa manager, the Club at ibis, West palm beach, Fl kevin given, gm, Quail Valley golf Club, Vero beach, Fl ben hay, gm, Crane Creek Country Club, boise, iD mike hestera, gm/Coo, the Denver athletic Club, Denver, Co tom hurley, gm, Fiddler’s elbow Country Club, bob Jones, gm/Coo, Desert mountain Club, scottsdale, az nancy levenburg, member, spring lake Country Club, spring lake, mi stephen loguidice, gm/Coo, the Club at ibis, West palm beach, Fl ben lorenzen, pool and fitness director, Champions run, rockvale, tn paul malonson, gm/Coo, the Vineyard Country Club, naples, Fl Jason mcClain, executive chef, Jonathan Club, los angeles, Ca macDonald niven, CCm, CCe, gm, la rinconada Country Club, los gatos, Ca Chef Jason mcClain, Jonathan Club, los angeles, Ca

Jeff mcFadden, gm/Coo, union league of philadelphia David mackesey, past president, Diablo Country Club, Diablo, Ca, and overseas historian, Carnoustie golf Club Craig martin, gm, st. andrews Country Club, boca raton, Fl. tim muessle, gm, philadelphia Cricket Club Dr. bonnie knutson, the Country Club of lansing and the michigan athletic Club gregg patterson, member, the beach Club of santa monica, Ca Frances peck, president, aberdeen golf & Country Club, boynton beach, Fl steven poe, master sommelier and beverage director, big Canyon Country Club, newport beach, Ca larry and Jill porcellato, members, Desert mountain Club, scottsdale, az stephen roper, gm, meridian hills Country Club, indianapolis, in Doug shifflett, gm, governors Club, Chapel hill, nC randy sinnott, president, Jonathan Club, los angeles, Ca mike stanton, gm/Coo, san luis obispo Country Club, san luis obispo, Ca irwin tepper, president, Wycliffe Country Club, Wellington, Fl rob tench, gm/Coo, orchid island golf & beach Club, orchid, Fl Jerry thirion, gm, bay Colony golf Club, naples, Fl burt Ward, gm, Century Country Club, purchase, ny

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BOARDROOM | noVember/DeCember 2016

February 4-9, 2017

MAKEï¿½TURN

Th e Bo a rd Ro o m ma ga zin e

CELEBRATING 20 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 267

VOLUME XX NOVEMBER/DECEMBER

Vo lume XX, No vemb er/Decemb er 2016