Th e Bo a rd Ro o m ma ga zin e
CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 273
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VOLUME XXI NOVEMBER/DECEMBER
Vo lume XXI, No vemb er/Decemb er, 201 7
BoardRoom’s Distinguished Clubs Program Selects Brand Ambassadors - PAGE 20 Picture above from top to bottom, left to right: Tony D’Errico, Damon D’Orio, Bill Howard, Matthew Linderman, Joel Livingood, Thorsten Loth, Michael McCarthy, Jeffrey McFadden, Brett Morris, Paul Mroz, Jill Philmon, Christine Pooler, Robert Sereci, Nicholas S. Sidorakis, Roger Simon, Terra Waldron.
DAVE WHITE Dave White is the editor of BoardRoom magazine. If you have comments on this article or suggestions for other topics, please send Dave an email to: dave@boardroommag.com.
EDITOR’S NOTE
Another Mixed Bag! As another year ebbs away, it gives us the opportunity to look at the ‘State of the Industry’, and some of the people and happenings who make it what it is.
Much emphasis, and rightly so, is focused on what’s being done right and what needs to be done to spark private clubs…all while focusing on each club’s member experience to ultimately create membership value. Our cover story this issue highlights the growth of BoardRoom magazine’s Distinguished Clubs program and the selection of some of the industry’s leading personalities as Brand Ambassadors for Distinguished Clubs. BoardRoom’s Distinguished Clubs program, launched five years ago, has gained strength and momentum as the première program for measuring and rewarding members’ experiences at private clubs. “We have a well-earned reputation for the tremendous credibility of the comprehensive methodology we have in place for evaluating the member experience at clubs across the country,” explained Distinguished Clubs’ President Keith Jarrett. And of course, this is all in keeping with the objective of Boardroom’s Distinguished Clubs program, which seeks to vitalize and preserve private club by fostering a ceaseless drive to improve the private club member experience. “The program is credible, legitimate, fair and rigorous and give clubs an essential understanding of where their club stands today,” Jarrett added. “Now it’s time to take the whole program to the next level. That means the introduction of the BoardRoom Distinguished Clubs Brand Ambassador program.” And it all begins when the Brand Ambassadors meet for the first time in December at The Union League of Philadelphia, PA. For more on the Brand Ambassadors, have a read of our cover story… ■ ■ ■
Quite some time ago, the topic of the paperless society became quite prevalent as soothsayers predicted it wouldn’t be long before everything anyone completed on a computer or other technological device would be there as a digital document – no need to print anything again on paper. Well, paperless production has fallen ways short of predictions, and although there is some greater use of digital platforms, we surely haven’t eliminated printing on paper. That takes us to Bill Boothe’s thoughts on Paperless Member Billing. “Some things never seem to change with private 4
BOARDROOM | NOVEMBER/DECEMBER 2017
clubs,” says Boothe. “But paper-based member billing is one thing that should have gone out the window long ago.” Printing and mailing paper statements Boothe suggests is a costly monthly ritual…requiring hours of low productivity to complete a chore that could easily be automatic. Shifting to digital or electronic statement has been tried by some clubs, but low participation rates are the result. Why? Boothe suggests it’s because the efforts lack three key ingredients of any successful plan for change. 1) There has to be tangible benefits to the target audience of the plan. 2) There need for a specific plan of action and 3) there has to be long term commitment to the plan, and that Boothe maintained is the “part that escapes most clubs.” He does make a strong argument for making a change to electronic billings and suggest clubs should get started on their plan…now. “Every day you wait is wasting money and killing more trees,” Boothe opines, as he urges clubs to ‘get the ball rolling.” ■ ■ ■
BoardRoom’s “Excellence in Achievement Awards” are the only private club industry awards that recognize the clubs’ business partners. And our 2017 “Excellence in Achievement” Award recipients receive their due in this issue. BoardRoom magazine’s industry peers review and select these outstanding suppliers and consultants, representing various aspects of course and club operations. Winners, each year, are selected for overall excellence, achievements, innovation, vision for future growth, and continued impact on private club operations in their respective fields. Congratulations to all the recipients. ■ ■ ■
This BoardRoom also features the last of 2016’s top presidents: Greg Meland, President, Interlachen Country Club, Edina, Minnesota; King Purnell, President, Cherokee Country Club, Knoxville, Tennessee, and Paul Wickes, President, The Ford Plantation, Richmond Hill GA. This, of course, sets the stage for the selection and announcement of BoardRoom’s Top 2017 Private Club Presidents from around the world in our January/February 2018 BoardRoom magazine. We’ll have detailed information about our Distinguished Club Presidents and other top presidents selected for their outstanding efforts with their private clubs. BR
Publisher/CEO
Co-Founder/CEO
John G. Fornaro
John G. Fornaro
Editor/Co-Publisher
President
Dave White
Keith Jarrett
Assoc. Editor/VP Creative/Co-Publisher
Chief Analyst
Heather Arias de Cordoba
Frank Gore
APCD Executive Director
Chief Information Officer
Bill Thomas
Jeff Briggs
Editorial & Marketing Director
Executive Director
Dee Kaplan
Bill Thomas
Account Manager
Business Development Manager
Dina Alleluia-Carr
Christiรกnne Kinder
Contact Information
Contact Information
www.BoardRoomMagazine.com www.apcd.com (949) 376-8889 or (949) 365-6966
www.DistinguishedClubs.com (949) 376-8889
Subscriptions and Website Heather Arias de Cordoba www.BoardRoomMagazine.com (949) 365-6966
Featured Columnists Rick Coyne John G. Fornaro Bonnie J. Knutson Nancy M. Levenburg
Philip G. Newman Gregg Patterson Whitney Reid Pennell Len Simard
Michelle Tanzer Dave White
Contributing Writers Joe Abely Brian Albert Chris Boettcher Bill Boothe Susan Bozeman Caleb Christopher Ronald F. Cichy Michael Crandal Amilcar Davy Rob DeMore Dave Doherty
Dave Duval Evan Hackel Kelley Harris Peter Hill MiRan Kim David W. Lacey Rick Ladendorf Ross Liggett Christopher M. McCagg Peter Nanula Macdonald Niven
Mike Phelps Ted Robinson Corey Saban Robert A. Sereci Meghan Thibault Joseph J. Thomas Richard Tiedemann Gordon Welch Bruce R. Williams Dean Wochaski
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 272 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 2017
PUBLISHER’S PERSPECTIVE | 10
CASE STUDY | 12
BOARDROOM BASICS & BEYOND | 14
WHY DO BOARD MEMBERS STICK THEIR FINGERS IN MANAGEMENT’S PIE?
STATE OF THE INDUSTRY OR STATE OF MIND
CONSUMERS SEEK CONVENIENCE
BY JOHN G. FORNARO
BY RICK COYNE
The common denominator for private clubs today is a volunteer board of directors operating in tandem with paid management. It’s management’s role to create ways for members to connect. Sometimes easier said than done in a field where private clubs are businesses full of emotional entanglements, good boards, bad boards and interfering boards of directors.
For decades, associations and companies have published annual reports on the state of the industry - what’s trending and the many opportunities on which progressive clubs could capitalize. Most the reports I’ve read over the years are incredibly accurate and full of “nuggets” that could benefit every club. So why are so many clubs still struggling?
Consumers crave connectivity, convenience and competition - with the caveat of a time crunch. Devices are getting smarter, conversations are quicker, and with this comes a shift in time priorities. Your members’ time is becoming more and more valuable. Although there is still value in longer athletic engagement, health enthusiasts of all levels are following fast-paced fitness (and quickly)!
PLIGHTS AND INSIGHTS | 16
EXECUTIVE COMMITTEE | 18
MEMBERSHIP MUSINGS | 54
JUST BECAUSE NOBODY COMPLAINS…
PARDON THE DISRUPTION
IS YOUR CLUB EVEN RELEVANT ANYMORE?
BY NANCY M. LEVENBU RG
BY BONNIE J. KNUTSON
To celebrate Cinco de Mayo, a nearby private club hosted an event with a special menu. When I ran into one of the club’s servers in the grocery store, I asked, “So, how was the Cinco de Mayo celebration?” And she replied, “I think it went over really well! There weren’t any complaints.” But, just because nobody complains doesn’t mean they’re happy.
“Disruptive innovation” has been a buzz phrase in several industries: hotels (AirBnB), transportation (Uber), food service (Blue Apron), retail (Amazon Prime), Technology (Waze), Entertainment (Netflix), office space (WeWork) and even airlines (Wheels Up)…to name a few. In the golf industry, there are also disruptors like TopGolf.
CLUB FACTS & FIGURES | 70
L AW AND LEGISL ATION | 76
TRIBAL MAGIC | 88
THE STATE OF THE CLUB INDUSTRY
PRIVATE CLUB STATUS
DELIVERING BIG TOUCH
BY PHILIP G. NEWMAN
BY MICHELLE TANZER
BY GREGG PATTERSON
In 1957 the following lines were attributed to Robert Dedman, ClubCorp founder, “A Club is a haven of refuge and accord in a world torn by strife and discord; is a place where kindred spirits gather to have fun and make friends.” And having visited some clubs that took Irma’s punches on the chin, it’s been incredible to see the staff so quickly geared up to serve members and help them and their communities move down the path of recovery.
The law makes a distinction between clubs that are open to the public, and those clubs that are operated exclusively for the benefit of their members. The rationale for this distinction is to preserve the right of privacy and freedom of association which may extend beyond a member’s home to a member’s private club. However, this rationale is not supported when the general public has access to a club’s facilities.
Club lovers love CLUB. Club lovers love the relationships they provide, the sense of community they generate and the warm embrace they deliver. Whenever they visit and begin nosing around, club lovers start looking for the touch. Member to member. Staff to staff. Staff to member. Member to staff. In the parking lot. At the front desk. In the locker room, grill, dining room, gym, first tee and bathrooms. Club lovers judge “club” by the amount of touch that’s delivered.
BY W H I T N E Y R E I D P E N N E L L
BY LEN SIMARD
To paraphrase the title of the 1962 Tony Award winning Broadway musical, “A Funny Thing Happened on the Way to the Forum” a funny thing has happened on the way to the altar of uniqueness. We figured out that just being unique doesn’t cut it. Or maybe I should say that our customers/members are telling us that being different isn’t enough anymore.
SECTIONS FEATURE. . . . . . . . . . . . . . . . . . . . . . . 10
DEPARTMENTS
Modern Governance Process Inspires Belle Haven Country Club
ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 46
Our Industry Is Strong!
By Joseph J. Thomas
By Gordon Welch
INSIGHTS. . . . . . . . . . . . . . . . . . . . . . 50
ASSOCIATION OF PRIVATE CLUB DIRECTORS . . . . . . . . . . . . . . . . . . . . . . 64
Expectations for the Coming Year Do the math (Meeting) + (Exceeding) = Not Enough
BoardRoom magazine Recognizes the Private Club Presidents of the Year By Heather Arias de Cordoba
By Michael Crandal, CNG
GOLF DISPUTE RESOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Owner of Unprofitable Golf Course Cannot Avoid Restrictions On Use of Property
ON THE FRONTLINES. . . . . . . . . . . . 56
By Rob Harris
Hold the line!
By Macdonald Niven
EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Blas Huezo Named Most Valuable Technician
ON THE FRONTLINES. . . . . . . . . . . . . 74
Get Off Your Laptop and Get On Board!
EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Industry Insight from the CMAA’s 2017 Finance And Operations Report
By Robert A. Sereci
By Amilcar Davy
TECHNOLOGY PERSPECTIVES. . . . . . 77
Paperless Member Billing Why Wait? By Bill Boothe
INNOVATIVE IDEAS. . . . . . . . . . . . . . 90
A Spring Fling Food Truck Event Delights Staff By Meghan Thibault
COMMITTEES FINANCE COMMITTEE. . . . . . . . . . . . 30
MEMBERSHIP COMMITTEE. . . . . . . 60
By Joe Abely & Dave Duval
By Mike Phelps
The Private Club Industry Continues to Evolve
Flavors on the Fairway Kicks Off the Summer Season By Meghan Thibault
INNOVATIVE IDEAS. . . . . . . . . . . . . . 92
Partnership with Local Non-Profit Helps Restore Coral Reefs By Meghan Thibault
INNOVATIVE IDEAS. . . . . . . . . . . . . . 93
Tablet Computer Software Provides Instant Feedback By Meghan Thibault
INNOVATIVE IDEAS. . . . . . . . . . . . . . 94
St. Andrews Comprehensive Events Calendar By Meghan Thibault
MARKETING COMMITTEE. . . . . . . . . 73
Don’t Get Left Behind By Corey Saban
TECHNOLOGY COMMITTEE. . . . . . . 78 EXECUTIVE COMMITTEE. . . . . . . . . . 44
INNOVATIVE IDEAS. . . . . . . . . . . . . . 91
Astrology, Tribes and Why Rolex Matters to Millennia
Communicate from the Front
MEMBERSHIP COMMITTEE. . . . . . . 62
Membership Marketing – By Ronald F. Cichy & MiRan Kim Starting from Scratch? - Part I By Ted Robinson
HOUSE COMMITTEE. . . . . . . . . . . . . 48
Why Training Means a Lot to Millennials
Should This Be Your Club’s Priority In 2018? By Rob DeMore
WELLNESS COMMITTEE. . . . . . . . . . 52
It’s all about ME!
Oxygen the Key to Maintaining a Putting Surface By Dave Doherty
GREEN COMMITTEE. . . . . . . . . . . . . . 81
Five Ways to Succeed with Millennials
Sustainability Comes in All Shapes and Sizes
HR COMMITTEE. . . . . . . . . . . . . . . . . 69
GREEN COMMITTEE. . . . . . . . . . . . . 82
By David W. Lacey
By Bruce R. Williams
MARKETING COMMITTEE. . . . . . . . 68
By Rick Ladendorf
By Caleb Christopher
GREEN COMMITTEE. . . . . . . . . . . . . 80 FOOD & BEVERAGE COMMITTEE. . 63
By Evan Hackel
Discovering and Defeating Email Fraud with DMARC
By Brian Albert
By Dean Wochaski
MEMBERSHIP COMMITTEE. . . . . . . 57
Waiting Lists Wait, what? Are those still a thing? By Peter Nanula
Taking the Pulse of Your Employees
MEMBERSHIP COMMITTEE. . . . . . . 58
WELLNESS COMMITTEE. . . . . . . . . . 72
By Ross Liggett
By Peter Hill
Don’t Be Derelict:
Course Upgrades Help Retain Members
Welcome to the Media Business
CLUB SERVICE. . . . . . . . . . . . . . . . . 100
Staffing Your Club Who’s Out There?
By Chris Boettcher
FEATURE. . . . . . . . . . . . . . . . . . . . . . . 42
BoardRoom magazine Excellence in Achievement Awards
CASE STUDY FLORA SPRINGS WINERY. . . . . . 34-35 HINT | HARRIS INTERIORS. . . . 36-37 ROGERS MCCAGG. . . . . . . . . . . . 38-39 BOZEMAN . . . . . . . . . . . . . . . . . . 40-41 PARBAR. . . . . . . . . . . . . . . . . . . . . . . . 75
COVER STORY. . . . . . . . . . . . . . . . . . . 20
BoardRoom’s Distinguished Clubs Program Selects Brand Ambassadors By Dave White, editor
JOHN G. FORNARO
PUBLISHER’S PERSPECTIVE
John G. Fornaro is the publisher/CEO of BoardRoom magazine, co-founder/CEO of Distinguished Clubs and the CEO of the Association of Private Club Directors (APCD). If you have comments on this article or suggestions for other topics, please contact John Fornaro at (949) 376-8889 or via email: johnf@apcd.com
Why Do Board Members Stick Their Fingers In Their Management’s Pie? Private club governance is a prickly subject.
For eons, getting private club board members to understand their roles and responsibilities has been difficult, and, at times has created havoc for many private clubs. The fact is, boards can make or break a club. Private clubs that started out as the domain of a few are now appealing to a much broader market and people who definitely want a say in the direction of their club. Yes, there’s a legion of reasons, not the least being the fact that a strong cohesive board can give a private club the thrust, the drive…the impetus and the vision to achieve its – the members’ – goals. Private clubs, as small businesses, can be unwieldy beasts, especially when considering club governance. And the owners, (members who are also the customers) historically have been involved in the club’s governance, for good or bad. Yes, clubs hire paid managers to meet the demands and requirements of the members (and the owners) …but it is precisely this dichotomy that creates such a conflict – and a manager’s good-before-date in the private club industry. Today that evolution continues.
The common denominator for private clubs today is a volunteer board of directors operating in tandem with paid management. It’s management’s role to create activities, programs and ways for members to connect. Sometimes easier said than done in a field where private clubs are businesses, albeit businesses full of emotional entanglements, good boards, bad boards and interfering boards of directors. “Bad boards” are those that have a paralyzing effect upon the effective and efficient operation of a private club. We’ve seen it all too often where the professional staff and management have become the scapegoat for the actions of a “bad board,” if not one specific board member. Where does all this start? Much of the time it’s with personal agendas, an unsettling lack of trust, the undaunted urge to micromanage and a need for glorification! So why do board members stick their fingers in management’s pie, and what can anyone do about it? “I believe the common denominator of the conflict is trust,” expounds Gordon Welch, president of the Association SEE PUBLISHER’S PERSPECTIVE | 95
Modern Governance Process Inspires Belle Haven Country Club BY JOSEPH J. THOMAS
The old axiom for successful board members is to have their “nose in and fingers out” of the operations of the club. This certainly reflects the modern governance model that I have aspired to implement at Belle Haven Country Club. However, with all the variables in today’s dynamic club environment, this is easier said than done. The model breaks down for three principal reasons in my experience. First, board members don’t have a clear understanding of the governance expectations or don’t have the experience serving as board members in a comparable or equally complex environment. The club may not have adequately documented and communicated its expectations for board members, which leads to
problems in terms of behaviors. On the other hand, the nomination process for board members may not be independent of the board or rigorous enough so as to ensure that new board members have the appropriate experience to serve in a fiduciary capacity on behalf of all members. Second, as directors begin to ask questions of management (which is appropriate and their prerogative to do so), they receive answers from management that are inadequate or the GM visibly bristles from the unwelcomed inquiries. General managers are subjected to a revolving door of new directors which can be frustrating. This can then create a culture of mistrust between management and the board. It is exacSEE BELLE HAVEN | 96
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RICK COYNE Rick Coyne is managing partner, Club Mark Partners, LLC. He can be reached via email: rcoyne@clubmark.com
CASE STUDY
State of the Industry or State of Mind For decades, associations and companies have published annual reports on the state of the industry including what’s trending and the many opportunities on which progressive clubs could capitalize.
For the most part, the reports I’ve read over the years are incredibly accurate and full of “nuggets” that could benefit every club. From the most monetizable capital investments to the needs of Millennials, there’s a lot of industry information available today that could be money in the bank. So why are so many clubs still struggling? First, change is never an alarm clock ringing. It’s grains of sand falling through an hour glass, one grain at a time. The financial crisis of 2008 is the only really significant change in the past decade that has affected clubs in a major way, and frankly, it was a great wake-up call for an industry that hasn’t always kept track of the grains of sand steadily falling. Another major shift in the industry before the last decade that had a dramatic affect occurred back in the late 80s and early 90s, with the beginning of the “boom” years of golf participation, which drove unprecedented club growth throughout the country. Before that, supply and demand for private clubs was stable and to be referred as a member of a club was a coveted trophy signifying acceptance to an elite constituency. With the growth and resulting increase in the number of golfers and members came another phenomenon – the shift from mandatory homogeny into the club’s culture, to clubs’ need to address the needs of each new generation. It was no longer, “How must I act to be accepted”, giving way to “How does the club fit my needs?” So, from the culture of the club evolved an ever-changing generational need for attention. City clubs, in the early 90s faced significant challenges as tax laws diminished entertainment deductions. Many corporations simply mandated to executives that they would pay for only one membership, forcing the member to choose between the business club versus the social club. Social won in most of those decisions nearly decimating the city club ranks. On the other hand, lifestyles were also changing. An aging population of Baby Boomers gave way to several
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new “me” generations, each with differing viewpoints on nearly everything. Time became a precious commodity making lifestyle choices more difficult and more about taking what little time was available and maximizing the enjoyment factor. Women, more active in the workplace than ever before, began making nearly all of the discretionary decisions. Families sought ways in which to be families, spending quality of time together. So, what does this have to do with the state of the industry? Everything! These events and attitudes are an evolution of external factors, which in turn, shape the way your members and prospective members think, what they want and how they live their lives. The result is that regardless of size, shape or exclusivity of the club, driving lifestyle significance into existing members’ lives became the most important factor in building a sustainable business model. So, is the state of the industry more a state of mind? Which, begs the question, whose state of mind are we talking about? Well, it’s perfectly clear that thinking and lifestyle requirements have changed by generation. The evidence is empirical. I hope everyone can agree on that. If you do agree, then the state of mind of members and potential members continues to alter the state of the industry. Still with me? The other state of mind in this industry mix is the club’s. Clubs subscribing to consumer changes also embrace the necessity to follow in kind with relevant programming and facilities will reap the rewards of positive growth, limited attrition, robust utilization of club facilities and participation in events, and in the member referrals that follow a happy member. The reverse is also true, resulting in a polarization of all but a few diehard members that cling to the past like a rubber dingy in a stormy sea. The past is behind us and by recognizing the state of mind of your members and potential members, you hold the key to the state of the industry’s future. It all depends on your state of mind. BR
LEN SIMARD
BOARDROOM BASICS AND BEYOND
Len Simard is an executive search executive with Kopplin Kuebler and Wallace, specializing in racquets sports, fitness and GM/COO recruitment. Len can be reached at (407) 463-8923 or via email: Len@KkandW.com
Consumers Seek Convenience Racquet Sports Continue To Deliver
No matter the industry, consumers crave connectivity, convenience and competition - with the caveat of a time crunch. Devices are getting smarter, conversations are quicker, and with this comes a shift in time priorities.
For the health conscious, hours at the gym are being cut drastically to fit fast and effective “burst workouts.” This new approach to health and fitness is proving to be more than just a trend, as attention spans and availability are ever-shrinking commodities. The same can be said, and in some instances already seen, at the club level. Your members’ time is becoming more and more valuable. Although there is still value in longer athletic engagement, health enthusiasts of all levels – from entry to expert – are following fast-paced fitness (and quickly)! Clubs need to appeal continuously to the member’s preference for convenience, while keeping them actively engaged amidst their hurried lifestyles. Racquet sports offer an ideal combination of fitness, wellness, social reward and fun in a relatively short period of time. Heed these latest racquet sport stats and trends to continue to pique the interest of your busy membership: Tennis: Last year, total tennis participation grew 0.6 percent - topping 18.08 million players worldwide. While the trend in overall tennis participation has seen slight increases throughout the last five years, “core” participants – those who play 10 or more times a year – declined slightly in 2016. “Core players account for 81 percent of the money spent in the ‘tennis economy’ and 93 percent of all tennis play occasions,” according to Tennis Industry Association’s Executive Director Jolyn de Boer. “This slip in core players is in line with a trend toward more casual play for sports overall, rising inactivity levels, aging Baby Boomers, and new generations of players who are ‘samplers’ of multiple sports and activities.” Youth tennis participation increased in the last year, most notably in the six to 12 age range, which rose 11.7 percent. The 13-17 age group saw an increase of 2.7 percent. Cardio tennis is following the positive trends in fitness, wearables and group exercise and has captured the attention of 2.12 million players, up from 1.82 million in 2015. 14
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Squash: With 20 million players worldwide and no indication of slowing down, squash is here to stay. The United States has had the fastest growing squash participation rate compared to other countries, with 66 percent growth since 2010 according to the Sports and Fitness Association (SFIA). Currently, there are 1.71 million U.S.-based squash players and SFIA ranks squash the 12th fastest growing sport in the U.S. Pickleball: the paddle sport created for all ages and skill levels, has 2.5 million active players around the country and increasing. USA Pickleball Association (USAPA) membership has recently surpassed 20,000 and locations in which to play this peculiar-named racquet sport is nearing 5,500 - a steady increase of 90 location openings per month year-over-year, according to USAPA Executive Director Justin Maloof. POP tennis: A game with roots lasting more than 100 years but by a slightly different name and played mostly in California, POP Tennis is now widely recognized across the country. A fun, small court version of tennis with plenty of satisfying sound and easy to play. According to Lee Sponaugle, director of business development for POP Tennis, the sport is growing rapidly thanks in part because of the support provided by the United State Tennis Association (USTA). Padel: This is a sport that has tremendous popularity worldwide and is set to come to the U.S. in a big way in 2018/2019. There are more than 10 million padel players worldwide and 26 countries have supporting padel associations. Get ready for some great touch shots and long rallies. Platform tennis (Paddle): Although it is estimated that there are roughly 75,000-100,000 active paddle players in the U.S. currently, this sport has joined forces with the United States Professional Tennis Association (USPTA), which will only continue to propel interest and visibility in this fast-paced sport. There is a wide range of racquet sports that are facepaced and time-conscious. Engaging your membership with these fun and exciting games of play will bring value and retention. BR
NANCY M. LEVENBURG
PLIGHTS AND INSIGHTS
Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the President of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 331-7475.
Just Because Nobody Complains… To celebrate Cinco de Mayo, a nearby private club hosted an event with a special menu featuring Chilaquiles, Chile Relleno, Seafood Enchiladas, and what was billed as a super-scrumptious Tres Leches Cake. And oh yes, there were Margaritas, too!
When I ran into one of the club’s servers in the grocery store, I asked, “So, how was the Cinco de Mayo celebration?” And she replied, “I think it went over really well! There weren’t any complaints.” But, just because nobody complains doesn’t mean they’re happy. In fact, I found myself in this very same situation the other day. My “significant other” and I, at a restaurant, ordered a trio of sliders (miniature hamburgers) to munch on. With due apologies to all chefs (including my son and daughter-in-law), I prefer my burgers cooked “well done” – brown throughout and with a nice char on the outside. My significant other prefers his “medium.” We decided to compromise and ordered them “medium-well” (i.e. with a slight hint of pink in the middle). Nevertheless, after the sliders arrived I took my first bite, and noticed that it was still glaringly pink on the inside (alas!). But, being hungry, I ate it. With stomachs still growling, we decided to split a second order of sliders. “And this time,” we asked, “Will you please tell the chef to make sure they’re well done?” Well, guess what!?! The second trio of sliders looked exactly like the first trio… from my perspective, ugh! Our server queried us… “Were your sliders better the second time?” Not wanting to complain, we murmured, “Yes.” But we – or more precisely, I – still wasn’t exactly happy. RELUCTANCE TO COMPLAIN
Why was I reluctant to complain? I decided to do some research on the topic, and found that I’m no different from many, many people. In fact, people are often reluctant to bring forward complaints because of fear… fear that nothing will be done, fear that they – or the complaint – won’t be taken seriously, fear of reprisals, fear of being blamed or ridiculed, fear of getting a bad reputation or of being labeled as a “troublemaker”, fear of not wanting to get someone into
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trouble, fear of being embarrassed or humiliated by the behavior, and so on. As I pondered over the sliders later in the evening, I wondered how the kitchen staff is supposed to learn how to cook sliders if people (like me!) don’t complain? If they can’t make a two or three-ounce slider, how are they supposed to fare with a quarter-pounder? After all, it’s like when you’re doing anything and you make a mistake; you need to learn how to fix it, for example, when playing a musical instrument and you hit a wrong note, or the rhythm isn’t quite right. As all musicians know when you make a mistake, you have to practice and rehearse the fingering and rhythms over and over again, doing it correctly, before your performance becomes flawless. So, thinking more about the sliders’ incident (and in musical) terms, I began to view the complaint that I should have made as a “teaching moment.” If I had brought it up with the server, it could have allowed the chef to fix the small burger problem (pardon the pun) before it became a bigger problem… for example, if we’d vowed that we’d never go back to XYZ restaurant because they don’t know how to cook burgers. By my refraining from complaining, it deprived the chef of what could have been a teaching moment. It’s always preferable (as well as most profitable), of course, to do things right the first time. But, if a mistake is made, what you (club or restaurant managers) want to do is to find out about it. Immediately. So, ask questions. Encourage people to complain… and actually listen to the answer. Then, take action. Demonstrate to the customer that their complaint was worth their taking the time/energy to voice it. Thank them for their feedback. Do not – and I repeat, do not – make excuses. And finally, fix the problem and resolve their issue. But most of all, don’t make the mistake of thinking that silent customers are happy customers. They may simply be reluctant to voice their concerns. BR
Leaders in F&B Innovation
Michael S. Wheeler, CCE, CCM
Matt McKinney, CCM
Jay DiPietro, CCM
Michael G. Leemhuis, CCM, CCE, PGA
COO and General Manager Cherokee Town & Country Club Atlanta, GA
COO and General Manager Capital City Club Atlanta, GA
President and General Manager Boca West Country Club Boca Raton, FL
President Ocean Reef Club Key Largo, FL
Craig L. Lopes, CCM
Richard L. LaRocca, CCM, CCE
Nick Sidorakis, CCM
Phil Kiester, CCM
Brett Morris
General Manager The Moorings Yacht & Country Club Vero Beach, FL
General Manager/COO The Country Club of Orlando Orlando, FL
COO and General Manager Southern Hills Country Club Tulsa, OK
General Manager The Country Club of Virginia Richmond, VA
COO and General Manager Polo Club of Boca Raton Boca Raton, FL
Innovation is a key component of leadership. These top executives have taken their clubs to a higher level by implementing a better approach for managing club food and beverage departments. Building on a foundation of best practices, checks and balances, and integrated business flows, they incorporated leading-edge food and beverage automation and reduced labor by tying all their systems together. The controls, disciplines and reports produced by this approach make it possible to run food and beverage departments at peak efficiency, substantially reducing clerical labor and food costs. Innovation. A better way to do business Just what you would expect from leaders at this level.
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WHITNEY REID PENNELL
EXECUTIVE COMMITTEE
Whitney Reid Pennell, president of RCS Hospitality Group, formerly Reid Consulting Services (RCS) is a celebrated management consultant, educator, and speaker. RCS, the creators of F&B Service Boot CampTM, specialize in strategic planning, operations consulting, F&B management, executive recruitment, and training programs. Contact: (623) 322-0773 | www.ConsultingRCS.com
Pardon the Disruption “We cannot solve our problems with the same thinking we used when we created them.” – Albert Einstein
“Disruptive innovation” has been a buzz phrase in several industries: hotels (AirBnB), transportation (Uber), food service (Blue Apron), retail (Amazon Prime), Technology (Waze), Entertainment (Netflix), office space (WeWork) and even airlines (Wheels Up)…to name a few. In the golf industry, there are also disruptors like TopGolf. Yet, when we think about our club members we often forget how they actually work and live their day-to-day lives, as evidenced by the success of these disruptive innovators. Our members are consumers in those industries, and chances are, of at least some of those services and companies I mentioned as well. Their needs and wants have evolved to push those industries along the path of evolution. It’s all about health, wellness, networking, convenience, comfort, and personalized service in a casual environment.
outsiders or entrepreneurs are usually leading the pack. Traditional business models are slow to adopt the innovative ideas and operating models until the disruption proves to be a success. These innovative ideas to keep clubs relevant are beginning to take hold: programs geared towards making golf casual, quicker, and more fun; beacon technology for more personalized service; providing work spaces; more casual dining and delivery … the list goes on. Remaining relevant is the key right now. Potential members are abstaining from joining clubs because they are choosing not to; not because of a layoff or other lost income. Clubs with a high value proposition have a wait list. The innovative companies listed earlier are not successful because of a low price specifically—they are serving a need. It is crucial for club leadership to look at the last bullet of the graphic: standards adapted to members – shift attitudes, embrace innovation, upgrade facilities and understanding members’ needs. Before making emotional
Technology has brought about a much faster evolution of how our members live and work and therefore what they want from a club membership. We must be adaptable and flexible, thinking differently than we have in the past. What this means for private clubs is that the members and potential members want the club to fit into their lifestyle. They will not join or use a club that forces them to change how they live and work. Beside the few clubs enjoying a wait list to join, there are more struggling with member retention and attraction and some are beginning to panic because of their financial situation. Some of the ‘panic’ decisions being made are akin to what we saw during the Great Recession: massive labor and expense cuts, deferred maintenance, slashed or eliminated initiation fees, and increased involvement by the board at the expense of seasoned management staff. Often deterioration of service, lack of capital funding, and mismanagement, of course, became the result of these decisions. Together these issues further exacerbate the club’s financial position, rendering them unable to remain competitive. A club study released several years ago, including a summary of findings, highlighted how clubs can remain ‘relevant.’ When we think of disruptive business models, 18
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decisions, I challenge you to take a step back and consider a few best practices to remain relevant as shown in the illustration, and I’ll add one more: • A strong social media presence. Instagram tells your story. Facebook creates opportunities to share your member experience. If 40 – 60 percent of your new members will come from your existing members, what tools are you providing to this built-in sales team to carry your message? Millenials specifically are accustomed to seeking ratings for products and services. Technology has brought about a much faster evolution of how our members live and work and therefore what they want from a club membership. We must be adaptable and flexible, thinking differently than we have in the past. If we are going to truly create clubs of the future, it’s time to better understand and accommodate our modern members. Cutting is not the answer. Investment in your club to create a higher value proposition is. BR
COVER STORY |
BY DAVE WHITE, EDITOR
BoardRoom’s Distinguished Clubs Program Selects Brand Ambassadors
BoardRoom magazine’s Distinguished Clubs program is climbing to new heights. “We’re announcing our Distinguished Club’s Brand Ambassadors…the selection of some of the most outstanding personalities in the private club industry who have agreed to be Brand Ambassadors for us,” outlined Keith Jarrett, president of Boardroom’s Distinguished Clubs program. “It’s been five years since we first launched our Distinguished Clubs program, which, based on merit, is acknowledged as the premiere award for measuring and rewarding members’ experience at private clubs. The program and process has settled in well,” Jarrett explained. Today 200 clubs are defined as BoardRoom Distinguished Clubs, including all of the Brand Ambassadors’ clubs. “We have a well-earned reputation for the tremendous credibility of the comprehensive methodology we have in place for evaluating the member experience at clubs across the country,” he explained. “Of course, that’s been the objective of our Distinguished Clubs program as we seek to vitalize and preserve private clubs by fostering a ceaseless drive to improve the member experience offered by private clubs,” injected John Fornaro, publisher and CEO of BoardRoom magazine. “BoardRoom’s Distinguished Clubs are truly the finest 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. “The program is credible, legitimate, fair and rigorous and give clubs an essential understanding of where their club stands today,” Jarrett added. “Now it’s time to take whole program to the next level. That means the introduction of the BoardRoom Distinguished Clubs Brand Ambassador program.” The 16 Brand Ambassadors met for the first time in early December at The Union League of Philadelphia, PA. “The inaugural meeting will focus on Distinguished Clubs methodology and discuss ideas on how to grow the Distinguished Clubs brand,” Jarrett explained. “We’ll also be reviewing Distinguished Clubs messaging so as to express Distinguished Clubs as a trusted, high integrity, credible brand that signifies – the Finest Clubs of the World,” Jarrett added. The Distinguished Clubs program focuses on a credible, clubspecific rating system recognizing the club, its management and its staff. It’s based on certain criteria and the evaluation process focuses on a club’s member experience including: 20
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1) Nomination: It all starts with a peer review as the nomination committee must nominate a club before an evaluation can occur. 2) On-site visit: There is an on-site visit and evaluation by BoardRoom’s Distinguished Club’s analysts using a proprietary formula rating the club’s member experience. 3) Audit: The club evaluation goes through an auditing process by BoardRoom. 4) Report: A confidential report is issued to the club’s general manager. 5) Recognition: There is recognition for the award status of Distinguished Club, as well as individual department leadership awards based on the club evaluation. The rating is done with a series of questions and a very important site visit. It’s not an inspection, nor a mere evaluation of the staff or management’s effectiveness. It is a thorough process that effectively measures the member experience. The formula is as follows: Member Experience equals Facility Quality plus Product Quality plus Service Quality plus Governance Quality plus Intangible Quality, or simply put: ME = FQ + PQ + GQ + SQ + IQ. The criteria remain more highly weighted on the three things that provide the finest Member Experience and the things that make the club exceptional. GQ (Governance Quality), SQ (Service Quality) and IQ (Intangible Quality) have the highest rating of all. This is why the Distinguished Clubs program and rating system is different from any other rating system. For the first time, the private club industry will have the ability to identify the top private clubs in the world based on the most important aspect – Member Experience. “Our Distinguished Clubs program stands alone as a brandnew approach and it’s all about ‘member experience,’” enthused Fornaro about the program initiated five years ago. “It’s fantastic that the club industry’s national associations are investing time and money to grow the industry, but it’s really important that we grow the private club industry at the grass roots level. “We have to take responsibility for growth and it all starts by identifying the clubs that have truly done an excellent job in defining their club’s member experience,” he expressed. In accepting the appointment, BoardRoom asked the Brand Ambassadors one question: What do you see as the major issue or issues for private clubs in 2018?
Tony D’Errico, CCM, CCE Chief Operating Officer
William (Bill) Howard, CCM General Manager/COO
Matthew Linderman, CCM General Manager/COO
Quail West Foundation Naples, FL
Bel-Air Bay Club Pacific Palisades, CA
Boca West Country Club Boca Raton, FL
Tony before moving to Quail West Foundation, served as the GM/COO of Westwood Country Club in St Louis, MO since 1999. He has been a CMAA member since 1993, joined the board of directors in 2007 and served as the national president in 2015 and immediate past president in 2016. On the chapter level, D’Errico is involved in the Florida Chapter, most recently serving as a member of the board of directors. During his time in Missouri, he served as the vice president and president for the St. Louis District Chapter. Previously, D’Errico was active with the Carolinas and Florida Chapters of CMAA as a regional director. Mr. D’Errico has also served on CMAA’s Club Foundation board of directors. D’Errico is an adjunct facilitator for several allied associations and a volunteer of his community church. He’s been a guest lecturer for the University of Central Florida, University of South Carolina, University of Missouri and Forest Park Community College for club management programs. Tony D’Errico is a dedicated family man with a passion for golf, tennis, classical music and wine. He and his wife Jenny have been married for 28 years and have two adult children living in Kansas City, Nicholas, 26 and Michael, 23. What do you see as the major issue or issues for private clubs in 2018? The major issue facing clubs in 2018 is surviving the “facilities war.” In Florida clubs alone, there is nearly $1 billion in facility improvements taking place in 2017 and in the pipeline for 2018! For managers of these clubs, navigating this complicated process — internally and externally — in a robust economy, with growing demand for a limited number of qualified contractors will be paramount for their success.” B R
William (Bill) Howard is a 31-year veteran of the private country club industry, and during Bill’s tenure, The Bel-Air Bay Club has completely transformed. A funky Pacific Palisades beach club that offered members dinner two nights a week has grown into an $18 million-dollar yearround operation that boasts 98 percent overall member satisfaction. Bill partners with a diverse board of directors and leads a dynamic management team to craft amenities and services that are consistent with the club’s mission. These leaders are professional community builders who, with Bill’s leadership and vision, ensure the success of Bel-Air Bay Club by building strategic opportunities for heart-warming moments that enrich members’ lives. What do you see as the major issue or issues for private clubs in 2018? Staying relevant through safety, value and convenience. As private clubs, we have a unique opportunity to provide our club families with a safe home away from home, a good value for the cost of their membership, and plenty of convenience for every member of the family. And, we can do it with a whole lot of fun. Providing a safe place for the whole family (from the toddler to the grandparents) makes a good platform for building community. Grow your community’s relationships further through development of activities and spaces that cater to the entire family, and do this while providing plenty of moments for making lasting memories. Ensure that these experiences offer a good value and are easy for your member families to participate in and you’ll have a recipe for staying relevant in 2018 and well beyond. BR
Matthew Linderman joined Boca West Country Club in 2005 after serving as the director of food and beverage for the Four Seasons Hotels/Four Seasons Resort Palm Beach. He joined Boca West as the assistant food and beverage director and quickly worked up the ranks as food and beverage director, club manager, assistant general manager and then general manager as of October 1, 2016. Mr. Linderman added COO to his responsibilities upon the retirement of Jay DiPietro on October 1, 2017. Earlier in his career, Linderman served as the director of food and beverage for the Four Seasons Hotel in Washington, DC and the Four Seasons Resort in Palm Beach. In addition, he assisted with the opening task force for several Four Seasons properties throughout the country. Other previous employers include National Hotel in Miami Beach, Sheraton Bal Harbour Beach Resort, Sheraton Biscayne Bay Hotel Miami, the Rainbow Room in New York, and Middle Bay Country Club on Long Island. A native of Long Island, New York, Matthew resides in Boynton Beach with his wife and two daughters. He is a graduate of Florida International University with a degree in hospitality and a concentration in wine and spirits/formal dining. He has been or currently is a member of the Florida Chapter Club Managers Association of America as well as the National Club Managers Association of America, FIU Alumni Association, the American Sommelier Association, the Chaine des Rotisseurs, Miami Beach and Palm Beach, and the American Institute of Wine and Food, Florida and Washington, D.C. What do you see as the major issue or issues for private clubs in 2018? Not maintaining status quo when it comes to member experiences. Private clubs cater to the same clientele year after year, therefore it’s important to always go above and beyond to WOW our members by keeping those “annual” events fresh. It’s imperative we stay on top of the industry trends to keep from getting stale in addition to creating new milestone experience. At the same time, accomplishing this goal in collaboration with the board of governors to make sure that all of the financial guidelines are met while steering the priorities of the club as a whole, is vital. BR NOVEMBER/DECEMBER 2017 | BOARDROOM
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Joel A. Livingood General Manager/COO
Thorsten Loth General Manager/COO
Michael McCarthy CEO and General Manager
Interlachen Country Club Edina, MN
Cherry Hills Country Club Denver, CO
Addison Reserve Country Club Delray Beach, FL
Joel found his passion for hospitality early on, while working as a caddie at Oxbow Country Club in Fargo, ND. In 2011, he was named the club’s general manager at 22 years of age. He also served as general manager of North Oaks Golf Club in St. Paul, MN from 2014 to 2017. Joel is an active member of the Club Managers Association of America (CMAA) and National Club Association (NCA). He earned his Bachelors of Science in Business from the Carlson School of Management at the University of Minnesota. Established in 1909, Interlachen Country Club is recognized as a BoardRoom Distinguished Club and a 5-Star Platinum Club of America. The club’s golf course, most recently ranked No. 54 in the United States, was home to the 1930 US Open where Bobby Jones won the third leg in his infamous grand slam. The club offers golf, fitness, tennis, aquatics, hockey and dining to over 700 member families.
Thorsten recently accepted this new role as general manager/COO of Cherry Hills Country Club in Denver, CO, a BoardRoom Distinguished Club. He has held leadership positions in several private clubs since 1998 throughout south Florida and for the past eight years at Upper Montclair Country Club in Clifton, NJ. Born and raised in Germany, Thorsten graduated from Heidelberg Hotel Management School in 1998, just before moving to the U.S. As part of the vision, his focus is on the membership experience and the financial success of the organization. Thorsten takes great pride in developing and challenging his team of professionals while steadily raising the bar. Outside of work he enjoys spending time with his daughter Jordan who is an avid horseback rider, as well as partaking in road bike races whenever possible. His passion for the club industry stems from a great group of mentors that he worked with over the course of his career enabling him to now pass on that very same passion to the next generation of club industry professionals.
What do you see as the major issue or issues for private clubs in 2018? Attracting and retaining high quality team members. From hourly employees to department managers, private clubs need to evolve to attract and retain top talent just as the most successful clubs have evolved to attract and retain members. Unfortunately, as a colleague put it, our industry has a reputation for long days, late nights, weekends, holidays, and modest pay in a “feedback-rich” environment. Whether we agree with the perception or not it is a reality we need to face together. Millennials are seeking work that is meaningful and challenging. They desire their boss to serve more as a mentor or coach, and they prefer a collaborative work-environment versus a competitive one. They also want opportunity for advancement and a work-life balance. Private clubs meet many of these needs today and evolving to meet others would be good for us all. B R
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What’s the major issue facing private clubs in 2018? A continuing challenge for private clubs is to stay relevant as the Millennial generation is joining. Letting go of traditional settings, allowing technology and making all applications as user friendly as possible while digitizing part of the club experience. Another challenge that I am experiencing is the shrinking labor pool for almost all hourly positions and that even increased wages over and above the going market rate doesn’t guarantee an edge. Clubs have to rethink the package they provide to the younger workforce through programs such as scholarship funds amongst other benefits. BR
Michael McCarthy joined Addison Reserve in 2006 as CEO and General Manager after eight very successful years as the COO of BallenIsles. He is credited with turning around Addison Reserve Country Club, which, under Michael’s direction, now boasts both the BoardRoom Distinguished Club and Platinum Club distinctions. In 2006, Michael received the Excellence in Club Management Award by Club and Resort Magazine and the McMahon Group. In 2009, he earned the highest recognition being named 24th Club Executive of the Year, in CMAA’s 85 years. He has specialized in working with club boards on club governance. The standard Michael set has been hailed by managers across the country as the new direction for club management in the coming decade. He is a contributor to BoardRoom Magazine. McCarthy has been actively involved with the CMAA since 1997. He has served on the Florida chapter board since 2003 and was president in 2007. He served as a director on the national board of the Club Managers Association of America from 2012 to 2015. He’s also involved with charities, but most near and dear to his heart. Most near and dear to his heart though is being the vice chair of the Seminole Region Charity Golf Tournament, which has raised over $7 million for local children’s charities in Palm Beach County. What do you see as the major issue or issues for private clubs in 2018? One of the major issues facing residential country clubs in 2018 and beyond is the aging of long-time members and the resulting low inventory of homes for sale in the community. Long term established communities that have been around for the last 20 to 30 years initially attracted members in their 50s. Those members now 70 and 80-year-olds are increasingly unable to enjoy all of the amenities that their club has to offer. Although their long-term support of the club is highly valued, this aging population can result in lower average spending on activities compared to newer, more active younger members and may detract from the vitality of club programs. Older couples may also be hesitant to make the “next move” in their life path as they too have created a lasting social circle at their club and in the community. Not to be discounted is location, location, location which plays a huge role for all of these aging members who feel more comfortable in a familiar area. In addition, the generational differences between the new 50-year-old member and 80-something-year old member raises further issues. As the residential club members continue to age, clubs will have to continue to find creative ways to attract younger members. BR
Jeff McFadden General Manager/COO
Brett A. Morris General Manager/COO
Paul Mroz, CCM General Manager
The Union League of Philadelphia
Polo Club of Boca Raton, FL Boca Raton, FL
Oakmont Country Club Oakmont, PA
Philadelphia, PA Jeff McFadden is the GM/COO of The Union League of Philadelphia. Twenty years ago, at the young age of 30, Jeff became the leader of The League and has led a total revitalization and revolution of the storied institution. The League has added two golf courses, two satellite restaurants and has invested over $100 million in its center city clubhouse. The Union League has been honored as one of the best clubs in America. Jeff serves on many local charity boards and is a private instrument rated pilot and an avid golfer. He lives in Blue Bell, PA, next to Wings Airfield of course, with Julia, his wife, and Jack and Maddie, their two children. What do you see as the major issue or issues for private clubs in 2018. The major issue private clubs will continue to face in 2018 is the escalating pace of change in what new members want in their private clubs. If we want to continue to attract high quality members we have to understand that most clubs have to go through a revolution if they want to succeed in the future. I am not talking about denim, casual dining, or better fitness facilities, all by the way are necessary. We must fundamentally understand the true value proposition of providing a club that delivers exceptional experiences over normal traditional club offerings. We cannot start the next chapter of private clubs in America if we keep re-reading the last chapter and try to do it just a little bit better. All the generations coming after the Baby Boomers will want more “experience driven clubs” that enrich their lives and gives meaning to their existence. I believe this revolution is coming and we must be ready to make sure our clubs evolve fast enough to keep pace. Members of tomorrow, and I mean the actual day after today, are looking for total lifestyle clubs beyond the normal golf, country club or yacht club offerings. A good example is the proliferation of “teaching demonstration kitchens” in clubs. Another example is the proliferation of short “par 3” courses, “top golf” quality learning centers and incredible splash parks. All of these highly popular and successful amenities revolve around delivering a special experience. In 2018 we have to remind ourselves that it’s not who we are that holds us back, it’s who we think we’re not… B R 24
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Brett arrived at The Polo Club in 2012 with a challenge to rebuild the club’s brand, member experience, staff morale, and reputation – both inside and outside the gates. With a genuine concern for the members and his staff, along with excellent management skills, Morris has transformed The Polo Club into one of the premier residential resort communities in the United States. As a graduate of the Culinary Institute, his most recent club management positions include Fresh Meadow Country Club; Wykagyl Country Club and Millbrook Golf Club – both as an executive chef and general manager/COO. Currently, he manages an annual budget in excess of $50 million dollars and has overseen over $36 million in capital renovation projects. He has created an exceptional management team and gained recognition for Polo as a BoardRoom Distinguished Club, Platinum Club, and also as one of America’s Healthiest Clubs. In 2017 Brett was recognized and received the James A. Brewer Award for Excellence in Club Management. The Polo Club is a Boca Raton gated community of 1,700 homes with almost 3,500 members. The club’s amenities are operated by 550 employees, including 19 department managers. Membership categories consist of social, golf, tennis and full members. What do you see as the major issue or issues for private clubs in 2018? Our greatest challenge is creating and effectively marketing a value proposition for the gated-community lifestyle, which resonates with Baby Boomers and GenXers, most of whom share an orientation towards fitness, active vacations, and healthy living. We have to offer a membership experience which appeals to that demographic, while simultaneously continuing to satisfy our legacy members, many of whom have been here for 25 years or more. Most South Florida clubs were built around golf courses, and capturing more than our fair share of that market segment presents an additional challenge since golfers drive a significant part of our economic model. BR
Who knew that when I accepted my first job as a busboy at the age of 16 that it would ultimately lead to the position of general manager at Oakmont Country Club? (Not one soul in this universe!) I was always meant to be in the service industry. Initially, during my career in the restaurant business, I worked as a busser, server, dishwasher, cook and bartender. After a six-year stint as the manager of a sushi bar in Aspen, Colorado I worked as a food and beverage manager at the Ritz Carlton-Aspen for several years. Finally, I found my niche – the private club industry, and I’ve never looked back. The club business has taken me from Boca Raton to Vero Beach, Florida; Eagle, Colorado, Los Angeles and finally good old Pittsburgh, Pennsylvania. The camaraderie and support that I have experienced from others in the club industry is unique. Managers share and borrow ideas at a level unprecedented in most industries. We are all in this together! Having the support of others in the same industry creates a professional bond that strengthens not only the individual’s performance but the industry as a whole. What do you see as the major issue or issues for private clubs in 2018? In 2018 there will be an even greater demand for cross training of employees in order to keep costs in check, improve efficiency of operations and better handle member demands that pulse throughout the course of the year, month, week or even day. Successful clubs will be the ones who train a dishwasher to work a carving station, the bartender to assist in the guard hut or valet, or teach the snack bar staff how to assist in the laundry. By cross training employees you make their jobs more interesting. Also, you are better prepared for “Plan B” whenever a key employee calls in sick or is on vacation. Sometimes all it takes is the insertion of an employee into another department for an hour or two just to get over the hump. Members notice this and will be very impressed with your ability to manage people and keep your service standards at the highest levels. BR
Welcome
Recognizing our client’s needs for fine tuning their food & beverage operations, we are pleased to announce that Sam Lindsley has joined our firm specializing in food & beverage consulting and executive placement.
Sam Lindsley
Sam was the Chief Operating Officer of Michael Symon Restaurants (MSR), a growing Cleveland restaurant company with 7 distinct concepts, 18 restaurants and annual sales over $35 million.
While Sam was with MSR, he constructed all Standard Operating Procedures for the company and instituted best practices to ensure proper accountability and created a world-class service culture. He is a leader and bottom line producer whose strength lies in the fact that he understands that the backbone of any successful food & beverage operation is not only the systems put in place to control costs, but the ability to foster a culture of genuine hospitality.
“We are in the hospitality business and we love it, but we run our business as a business,” Sam Lindsley.
Sam is on the Board of Directors of The Ohio Restaurant Association and is the association Vice-Chairman. He also serves on the Advisory Board for Destination Cleveland (CVB), is a member of the Court of Master Sommeliers, and is a Certified Sommelier.
DICK KOPPLIN
KURT KUEBLER
TOM WALLACE
LISA CARROLL
LEN SIMARD
JACK SULLIVAN
ARMEN SUNY
SPECIALIZING IN GENERAL MANAGER/COO, DIRECTOR OF GOLF, GOLF COURSE SUPERINTENDENT, EXECUTIVE CHEF, RACQUET SPORTS PROFESSIONAL, COMMUNITY ASSOCIATION MANAGER, ASSISTANT GENERAL MANAGER, CLUBHOUSE MANAGER/ FOOD & BEVERAGE DIRECTOR AND FITNESS DIRECTOR SEARCHES, AS WELL AS STRATEGIC PLANNING AND CONSULTING SERVICES FOR PRIVATE, RESORT AND DEVELOPER-OWNED PROPERTIES.
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DENVER
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JUPITER
EXECUTIVE SEARCH FIRM OF THE YEAR 11TH YEAR IN A ROW
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S C OT T S D A L E
Jill Philmon, CCM, CCE General Manager/COO
Christine R. Pooler, CCM Director of Club Operations
Robert Sereci General Manager/COO
Ballantyne Country Club Charlotte, NC
Augusta National Golf Club Augusta, GA
Medinah Country Club Medinah, Ill
Jill Philmon is a Certified Club Manager and Certified Club Executive who has been in the hospitality industry since her first job at the age of 16. Over the last 25 years, she has worked within the club industry and is currently the general manager and chief operating officer at Ballantyne Country Club in Charlotte, NC. Philmon currently is the Immediate Past President of the Club Managers Association of America board of directors, a much-deserved title following her active roles within the organization since 1993. In 2008, Philmon became a member of CMAA’s Honor Society, and was also chosen as the Carolinas Chapter CMAA Club Manager of the Year. In 2010 she earned her Certified Chief Executive designee. A mentor to many young club professionals, Philmon accepted a Charlotte Brava Award this year, which celebrates high-impact female business leaders who combine entrepreneurial spirit with a passion for giving back to the community. In addition, she is included in Worldwide Publishing’s prestigious roster of Top Female Executives in honor of outstanding professional excellence and dedication. What do you see as the major issue or issues for private clubs in 2018? With five generations in the workplace right now, it will be difficult to know what programs will be successful to engage new members while enhancing the current member experience. Members are expecting to see a value for their dues. Clubs that don’t have waiting lists will need to embrace social media and mitigate how to be exclusive without seeming to be uninviting. Branding will be more important than ever as clubs work to find their niche in the community, while fighting for their members’ loyalty. The days of “doing what you have always done” is gone. Creativity and sustainability will be the buzz words for 2018! B R
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Christine started her career at Vineyard Country Club in Naples where she worked in all areas of the club including golf, restaurant and administration. She has remained in the club industry for 24 years, and has also served the members of Merion Golf Club in Ardmore, PA., Wilmington Country Club in Wilmington, Delaware and The Country Club of Rochester in Rochester, NY. She has been the director of club operations at Augusta National Golf Club in Augusta, GA., since November 2016. She also serves on both the NCA and NCA Foundation boards and is past member of the United States Golf Association’s US Amateur Advisory Board. In 2014, Christine received the James H. Brewer Award for Excellence in Club Management, presented annually to the manager of a club with more than 600 fullprivilege members. Question: What do you see as the major issue or issues for private clubs in 2018? Club Industry Millennial Readiness: This may not be a ‘major’ point for some clubs but certainly an issue that needs to be addressed in most clubs, sooner rather than later. We are in an industry that typically is steeped in tradition; one that certainly expects or even demands more traditional behaviors and decorum. But how do we hold true to the typical club traditions, while still addressing the needs of a younger and ever-growing population? How do we address the needs of all of our constituents, while ensuring that our industry is equipped to specifically address the ‘wants and needs’ of Millennials? Are clubs focused on the ‘wants and needs’ of this generation? Millennials are not likely to conform to traditional club rules. They have very little interest in a waitlist, even for memberships in even the best clubs. They will not respond well to restrictive dress codes that require them to dress up for every visit to the club. And while at the club they certainly do not want to put away technology to communicate or converse about the latest headlines. Millennials demand an unbelievably social, lively and creative environment. An environment where they can focus attention on themselves and their friends, while celebrating and sharing their experiences with one another. Clubs must be willing to blend their traditional environments, with the expectations of the Millennials. BR
Hired as general manager and COO of Medinah Country Club in 2015, Robert is a strong collaborator and team builder. He remains a results-driven service provider who has implemented Six Sigma programs as a measurement and process tool to ensure service excellence. Strategic innovation and implementation are key to his success through enhanced IT infrastructure solutions, comprehensive analytics and real-time measurement and monitoring to increase efficiency and member satisfaction. Sereci, before joining Medinah Country Club worked as the general manager of The American Club in Hong Kong, a 3,000member club founded in 1925. He has been in club management since 1990, except for brief stints as COO assisting his father in a startup software/hardware company, specializing in real time structural health monitoring. He has been COO of Northwood Club in Dallas, Gaillardia Country Club in Oklahoma City, as well as assistant general manager at Cherokee Town and Country Club in Atlanta, and the Jonathan Club in Los Angeles. In addition to being a certified club manager, Robert holds a degree in hotel and restaurant management from Cal Poly Pomona, and an MBA from Georgia State University. What do you see as the major issue or issues for private clubs in 2018? The greatest (non-people) issue facing clubs for 2018 will continue to be complexity. Constant regulatory changes, massive technological advances will make our jobs even more challenging. Ultimately our goals as club mangers is to simplify this complexity. Attracting new generations of members by aligning their values, wishes and wants with those of the club. Then once you figure it out, a club must decide how to convince the rest of the club community on those changes and on how to pay for them. Attracting and retaining quality employees will continue to be a key challenge in 2018. As a direct result of the downturn in 2008, wages have not kept pace with the economy, and the implementation of the Affordable Care Act has created a problematic climate for clubs in hiring and retaining good seasonal and full-time employees. BR
Nicholas S. Sidorakis, CCM General Manager/COO
Roger Simon General Manager
Southern Hills Country Club Tulsa, OK
New York Athletic Club New York City, NY
Nick Sidorakis has been General Manager/ COO of Southern Hills Country Club, in Tulsa, Okla., for more than 22 years. Previously, he worked with the Marriott Corporation in a variety of general management positions for nine years, and owned and operated Sleepy Hollow Inn, a continental cuisine restaurant in Scotch Plains, N.J. Sidorakis attended The University of Houston Hotel and Restaurant Management School and attended Florida State University’s Hotel and Restaurant Management School. He remains an active member of the national and state CMAA organizations, and participated as president and board member of CMAA’s Kansas/Oklahoma Chapter. Sidorakis previously served on the Jenks Public School Education Foundation Board for over 13 years and served as president of that board on three occasions. Nick is co-founder of The First Tee of Tulsa and The First Serve programs, and currently serves as president of The First Tee of Tulsa program. He’s also chair of the Oklahoma Golf Hall of Fame. At Southern Hills Country Club, Sidorakis has overseen two major golf course renovations and a $22 million facility renovation project and is currently leading the club through a $19 million facility plan in 2018. Under his leadership, the club has hosted the 1995 and 1996 TOUR Championships, the 2001 US Open, the 2007 PGA Championship and the 2009 US Amateur Championship. Sidorakis serves on the board of National Club Association, NCA government relations committee and USGA regional affairs Committee. Nick has been married to Karla Sidorakis for 36 years. They have three children, Nick 29, Christopher 26 and Alexa 24. They are members of Life Church and he serves as ushers for the church. What do you see as the major issue or issues for private clubs in 2018? Major issues our club business is and will be facing in 2018 include a labor shortage in certain segments of our club business, specifically in golf course maintenance and culinary. Another is issue is finding the right people to work in the club industry. People who have the qualities we require and fit our club culture, (personality, attitude and enthusiasm, we call it the service mentality) and can pass the prescreening employment tests. Staying relevant and offering the right programming throughout all our departments that will allow us to continue to increase utilization of club amenities. B R 28
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New York Athletic Club has locations in New York City and Pelham Manor, New York. It boosts a membership base of 9,100 with operating revenues of $66 million. Throughout its history, NYAC athletes have claimed 271 medals in Olympic competition, 151 of which have been gold. With that has come a steadfast commitment from the NYAC to cre-
Terra Waldron, CCM, CCE, ECM Chief Operating Officer The Desert Highlands Association Scottsdale, AZ Desert Highlands sits as a private, gated residential community and country club in Scottsdale, Arizona with 575 member residents. As a BoardRoom Distinguished Club, Platinum Club, and one of America’s Healthiest Clubs, amenities at Desert Highlands include a Jack Nicklaus signature golf course, fitness facility, tennis courts, swimming complex, 18-hole putting course, and an award-winning clubhouse with annual dining sales of $1.7 million and a gross receipts value of $14 million. Under Terra’s leadership, the community has developed a unique reinvestment program for attracting property owners and investors to upgrade residential properties. A very strong membership and home owner attraction has been the result. Terra has been named one of the most influential women in the private club industry by BoardRoom magazine, Forbes influential women of the Northwest 2014, awarded the 2016 Club Executive of the Year by CMAA, and the Mead Grady Award for 2015. She also is one of the founding members of the wellness project of America’s Healthiest Clubs. In addition to her responsibilities at Desert Highlands, she currently sits on the CMAA Club Foundation Board and Advisory Committee, and is secretary of NCA’s National Board. A graduate of Cornell University’s famed Hospitality program, Terra also attended the College of Charleston and
ate of an environment in which excellence will flourish, be it in athletics, commerce, or individual well-being. Simon has been with the NYAC since 2000 and had previously worked with Hilton Hotels in various capacities and locations in metro-New York. He is a graduate of the University of Massachusetts at Amherst, currently lives in New York City and has a 15-year-old daughter. What do you see as the major issue or issues for private clubs in 2018? Private clubs will remain challenged to stay relevant in a fluid and fast-paced technology-driven service economy. Increased regulations, new legislation, and an exigent labor market will continue to be major issues in 2018. BR The University of North Carolina. She is a board member of the National Club Association (NCA), and a contributing editor to Club Trends,™ as well as a former member of the Club Managers Association of America (CMAA) board of directors, and a member of the Community Associations Institute (CAI). What do you see as the major issue or issues for private clubs in 2018? Competent staffing: Members of private clubs typically are well-traveled, sophisticated and have, as they should, a high expectation of well-trained knowledgeable, polite staff in all departments. In addition, they usually do not wish to see visible tattoos, and multiple body piercings. The younger applicant needs to be trained on club culture, and how to communicate with members, management, and other staff, especially if they are older staff in key positions. For outside service (valet) personnel they usually need to be 25 years of age with no DUIs, for insurance purposes. Pre-drug testing and the things mentioned above reduce the labor pool of competent staff. In today’s society, it is more of a problem because too few have a servant, hospitality heart. Their priorities are very different and you must as a business adapt. Government regulations: Legislators passing onerous bills, which inhibit businesses, especially in the hospitality industry of executing why they are in business. Clubs typically treated their assets physical and human resources with the utmost respect, care and honor. Bills which dedicate time off, legalized marijuana, insurance mandates, water regulations, and additional documented paperwork (multiple forms) for the sake of paperwork hurt the hospitality industry. BR
JOE ABELY
DAVE DUVAL
FINANCE COMMITTEE
The Private Club Industry Continues to Evolve Change continues to happen in the private club industry. Stronger clubs with broad based amenities and active members can justify initiation and capital fees that allow for constant modernization of existing assets and the addition of new facilities and amenities that appeal to the next wave of members. These clubs have built a self-sustaining model and are making first rate improvements to their campuses. The current emphasis is on improved casual dining venues, non-golf amenities, fitness and wellness facilities and youth programs. Interestingly, spending on golf training and practice facilities appears to be competing for funds with on-course improvements. Conversely, few clubs with golf-centric focus and narrow or dated amenity offerings can attract new members in sufficient numbers to make things work. For these clubs, and others caught in between, the squeeze is on. Common board responses of cutting initiation fees, limiting dues increases and cutting or eliminating capital fees to retain current members or to attract price-sensitive prospects may work temporarily but are not long-term solutions. DEATH SPIRAL Clubs cannot defy gravity for long. These actions often lead to diminished service levels and deteriorating facilities, which in turn, leads to membership dissatisfaction and more attrition. It’s a downward spiral. There are no easy solutions but careful planning can improve outcomes. A vision for the club must be created in a comprehensive strategic planning process that creates consensus and excitement among current and prospective members. In today’s environment, that means a diverse set amenities for the entire family. The financing of the vision must align with realistic membership growth and appropriate dues, capital fees and initiation fees for all. Current members must expect to pay their share of the improvements. It is unrealistic to think new members alone will fund the types of improvements necessary to revitalize a club. An esprit de corps must be developed around an exciting plan. It takes good planning, realistic financial models and great communication to effectively turn a club. Club boards that communicate well with members and regularly meet expectations set in planning stages have the best opportunity to revitalize their clubs. There are increasing instances of club boards investing time and money in comprehensive planning efforts only to see 30
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progress stall out when it comes to implementation. Many strategic capital improvement plans simply gather dust. There are several reasons why implementation stalls, including (1) board turnover (2) failure to include costs of replacement and ongoing modernization of existing assets in the early planning of new amenities (3) overly aggressive debt assumptions (4) when the planning “wants” get way out in front of the financing capabilities of the club, or (5) a failure to adequately anticipate the first question of members: How much is this going to cost me? The club’s vision must fit into achievable, healthy assumptions. That’s why a comprehensive and integrated long term financial plan is an essential component of the overall planning process. The addition of amenities need not always cost a great deal of money or require large amounts of land. Croquet and bocce courts are relatively simple additions and provide fun alternatives for sport and social engagements. Platform tennis is a wonderful off-season activity and can be added for a relatively modest sum. Pickleball is rapidly growing in popularity and can be played on specially built courts or repurposed tennis courts with a bit of extra equipment or ideally on platform tennis courts outfitted seasonally with removable mat surfaces. For clubs with snowy winters, cross country skiing, snowshoeing, skating and outdoor fires extend athletic and social options. Clubs have got to get creative with the physical and financial resources at hand. Fitness centers are becoming popular but do require space and sometimes a substantial financial investment. Keep your members on campus and attract new ones to it with a broad set of amenities designed for the entire family’s enjoyment. As the private club industry evolves, business models must evolve as well. It has never been more important to maintain long term projections for both operating and capital funds that address membership census assumptions, desired service levels, capital base expansion, regular increases in dues, appropriate initiation and capital fees, and debt repayment needs. Effective planning requires long term financial planning that spans several future administrations. BR Joe Abely and Dave Duval are co-founders and principals of Club Board Professionals LLC. Joe can be reached at (781) 953-9333 or via email at jabely@cbpros.com ; Dave at (617) 519-6281 or
RICHARD TIEDEMANN
CASE STUDY
Richard is a fifth-generation Napa Valley native whose family has grown grapes since the late 1880s. He logged thousands of miles this year by airplane and automobile as he hosted events at private clubs throughout the country. Even so, during harvest this year at Flora Springs, Richard held the record for shoveling out a tank of fermented grapes faster than anyone else.
My Year on the Road In 2017 Flora Springs Winery’s Director of Winery Relations, Richard Tiedemann, hosted over 45 tastings and winemaker dinners at private clubs throughout the U.S. and Canada, with 25 being Distinguished Clubs of America. We asked him about the highlights of his year. WHAT WAS YOUR MOST MEMORABLE EVENT THIS YEAR?
There are so many, but I’d have to say the opportunity to attend the Distinguished Ideas Summit in Boca Raton, FL was a real standout. It was a spectacular event, and I got to host a blind tasting of four Flora Springs wines – all reds - for over 100 attendees. I was sure a few people would guess the identities of all the wines, but as it turned out, no one did. DID THAT SURPRISE YOU?
Yes, but then again, I know it’s not an easy thing to do. I guess that’s why we have Master Sommeliers. They earn their stripes! WHAT ELSE IMPRESSED YOU THIS YEAR?
I may be one of the few people that had the opportunity to visit so many clubs in one year, and the quality of the clubs and the graciousness of their managers and staffs are always impressive. From the Chartwell Country Club in Maryland and the wonderful accommodations at Quail Valley Country Club in Florida to the Minnehaha Country Club in South Dakota and the Fremont Hills Country Club in California – plus so many more - the settings, service, food and hospitality at Distinguished Clubs are unparalleled.
I also think members appreciate learning not only about Flora Springs, but about wine in general and Napa Valley in particular. Because Flora Springs has vineyards in so many of Napa Valley’s sub-appellations, I’m able to talk about the diversity of the valley and demonstrate what makes a Cabernet from one sub-appellation different than another. Then we back that up by pouring some of the small production Cabernet Sauvignons Flora Springs makes from different vineyards and sub-appellations, wines the guests wouldn’t normally taste unless they were Flora Springs club members. It also helps to give away wine! I try to incorporate some kind of raffle or door prize into each of the Flora Springs events I do. Members really love that! ARE THERE ANY FOOD AND WINE PAIRINGS THAT STAND OUT AS PARTICULARLY MEMORABLE?
Again, there are so many. At the Navesink Country Club in Middletown, New Jersey the chef prepared a scallop dish that went beautifully with our Barrel Fermented Chardonnay. It was so successful that the GM added the pairing as a monthly menu item. BR
WHAT MADE THE FLORA SPRINGS EVENTS SUCCESSFUL FROM YOUR POINT OF VIEW?
The planning that goes into each event is key, as well as good communication with members. And the more a GM knows about his membership, the better. For instance, the GM at Bethesda Country Club understood that one of his ultra-curious members would appreciate it if I sat with his group during dinner and discussed the finer points of vineyards Flora Springs owns in Rutherford and Oakville, so I sent him a bottle ahead of time so he could taste the difference. I’m still in contact with that member! 34
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John Komes and his son, Nat, sorting grapes at the family's Flora Springs Estate.
KELLEY HARRIS Harris Interiors is a full-service clubhouse interior design firm based in Atlanta, Georgia. Please visit our website for additional information www.hintatlanta.com, or contact Kelley Harris, principal interior designer, (404) 492-5997, kelley@hintatlanta.com
CASE STUDY
Preparing for a Renovation
Steps for Taking On a Major Capital Project When Cherokee Town & Country Club charged the design team at Harris Interiors with restoring the original rooms of the club’s coveted Grant Estate, it was a carefully considered and planned capital project. The first step was to determine the project scope with an initial meeting planned with the house committee and design team. It was clear from the beginning that the goal was to celebrate the elegance of the historic home, while making the rooms more relevant to the way we live in our own homes. Next, Harris Interiors provided the club with the tools to establish the project budget. The designers authored a proper narrative that the various trades could use to price their work, complete with material costs and descriptions of techniques. Conversations between the tradesmen and the designers about creative ways to accomplish the design helped keep costs in check. A budget for furnishings was provided as well, which included a combination of new upholstery furniture and refurbished existing pieces. A presentation to the house committee to confirm all selections was the next step in the planning process. The designers presented all of the applied finishes, furniture pieces, and fabrics and gained consensus among the group for the design.
“The finished areas evoke a renewed sense of arrival that our membership has warmly embraced. We’ve successfully preserved and protected the traditional culture of our club while still being in the moment of our members’ lifestyle today. Cherokee standards require great attention to detail. An ongoing commitment of maintaining the physical assets of the house require capital investments that a deserving membership supports.”
Kim Crandal, Town Club Manager Setting a realistic timeline for the project was key to the success of the renovation. The club planned for execution during their annual summer shutdown, providing ample time for all of the trades to complete their work. Furnishings were ordered well in advance to ensure a timely delivery. Managing member expectations was very critical as well. A thoughtful explanation of the project was included in the club’s monthly newsletter. The article provided enough detail to inform, but also create excitement about the project. 36
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The design team members made themselves available to oversee the project. Qualified tradesmen restored the intricate oak paneling, original parquet wood flooring, and elaborate plaster ceilings, all of which had lost their luster and richness. Heavy window treatments were removed to allow natural daylight to flood the rooms. Quality upholstery pieces with saturated color appropriate to the era of the home, combined with antiques, table lamps and accessories made the design unique to Cherokee. Harris Interiors collaborated with the Cherokee Art Endowment to procure artwork appropriate to age of the home, which the design team integrated into the restored spaces. BR
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CHRISTOPHER M. MCCAGG
CASE STUDY
Christopher M. McCagg, AIA is a partner at Rogers McCagg Architects | Planners | Interior Designers. Together with partner Jim Rogers and principal Tony Panza, Rogers McCagg brings over 80 years of combined experience in planning and renovation projects for more than 60 private clubs. For more info visit, rm-arch.com or reach Chris directly at (203) 354 5210 or cmccagg@rm-arch.com.
To Renovate or Not to Renovate, That is the Question When analyzing member needs, clubs are often faced with the decision of whether to renovate current spaces or to build new. More likely than not, the question is not answered easily, therefore it is critical to engage an architect with substantial club experience as early in the process as possible. The architect’s role is to assist the client in considering all viable options and to present solutions to challenges from a point of view the client may not have considered. Being mindful of some key issues is essential to the successful outcome of a renovation project. The major reasons to consider renovation versus building new facilities usually include cost, shorter project schedule, and reduced disruption to members. Not surprisingly, these advantages must always be carefully weighed against competing considerations: 1. Risk – Unknown existing conditions are an inherent part of any renovation project and are difficult to detect during a conceptual planning and design process. These unknown conditions equal risk, so significantly higher contingencies must be carried in the construction and project budgets of a renovation. An architect experienced in club building renovation and his consultant team will understand how best to anticipate and minimize the impact of these conditions.
BEFO R E
AFTE R
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2. Integration of existing and new building systems, infrastructure and finishes can often turn into a frustrating exercise of choosing between economy and quality. It relates to the ageold challenge of weighing high first cost – perhaps an unaffordable option- against high operating costs. An experienced architect can present these choices in a clear, analytical approach to permit informed client decisions. At the end of the day, will the savings associated with a renovation really have been worth it? 3. Schedule – Having a keen understanding of the project schedule, and especially of its impact on member activities, is imperative. Renovation can often be completed more quickly than new construction, but as restrictions are placed on contractor access, periods of construction along with interruptions for member events, the advantages of renovation begin to erode; both schedule and cost. 4. Construction Contract – Most inexperienced clients assume competitive general contractor bidding is the key to getting the best price. This is often true for new construction where drawings and specifications will be complete and accurate. Because renovation documents often cannot be complete because of unknown conditions or inaccurate existing conditions drawings, it is always best to retain a construction manager to be a part of the project team from the beginning. The construction manager will act as a general contractor when building the project, but can help with essential planning, scheduling and budgeting as the project progresses through the planning process. In the end, this is an important measure of protection from surprises along the way. Whether to renovate or build new is often a complicated question without a simple answer. What is simple, though, is the importance of working with experienced professionals who know how to weigh available options and give clear, informed advice. BR
SUSAN BOZEMAN
CASE STUDY
Bozeman Club & Corporate Interiors is an Atlanta-based interior design firm specializing in private clubs, corporate and high-end residential design. Susan Bozeman may be reached via email at susanb@sbbdesigns.com or you may contact Jeff Barrett, senior vice president of club and corporate design at jeffb@sbbdesigns.com. Our phone number is (404) 237-7745.
Dos and Don’ts for Club Design Committees A rule of thumb in the private club world is that your clubhouse should undergo a significant interior renovation or refurbishment every 10 years. In addition to correcting normal maintenance and outdated infrastructure issues, changes to a building’s interior architecture and design can also correct utilization and flow problems. Just as important, and sometimes the sole reason for the renovation, is to keep your clubhouse fresh and appealing for your current and prospective members. One of the first steps that clubs usually undertake when pursuing a significant renovation program is the establishment of a special design or construction committee. The appointment of the individual committee members by the board of directors should not be taken lightly, nor should the appointments be overly influenced by club politics (a tall order in many clubs!). After all, this select group will ultimately be responsible for the success or failure of what may be a multi-million dollar expenditure. Having worked through the good, the bad and the ugly of design committees with many great clubs over many years, below is a recommended list of dos and don’ts from the perspective of a professional interior designer: DO - Keep your committee as small as possible. Four to eight, plus the general manager, is the ‘sweet spot’ for making decisions in a timely manner. Appoint a committee chairperson who is a strong decision maker and is well respected within the membership. They should have exceptional leadership and diplomatic skills and should not be afraid to say ‘no’ when necessary. Appoint committee members who understand that your interior designer is a professional consultant who has your club’s best interests and their own reputation in mind. Keep your committee intact for the duration of the project. DON’T - Appoint a committee chairperson who lacks the leadership skills to ‘herd cats’ if necessary. Appoint committee members who have provided design services to your club in the past. These members tend to have preconceived ideas about the design process or selections that may force themselves and your design consultant into unnecessarily awkward situations. Appoint committee members who think the club should reflect their personal taste. Appoint committee members who have limited or only residential decorating experience. They may not understand the requirements of a commercial facility like a club, nor the role and extent of the services provided by a professional club design consultant. DO - Select your interior designer based largely on their previous and successful body of work, provided the committee believes the designer can provide the appropriate style and design flexibility to achieve your club’s particular goals. 40
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Provide adequate input/programming information before your designer starts working. The committee should convey their design priorities and identify any ‘sacred cows’ that should not be compromised. Listen with an open mind when your designer strongly recommends a particular selection. Remember, they were hired based on their skill and experience. It may just be decorating to some, but it is serious business to your designer. Design schemes are developed with a great deal of thought. Individual selections are seldom made casually. If you question a selection, don’t hesitate to ask your designer why that particular item is important. DON’T - Select your designer based solely on their fee. Their reputation for quality and service, along with their body of work, should be the deciding factors when making your selection. As is usually the case, the quality of the finished product, and your members’ enjoyment, will far outlive the memory of how much it cost. Allow the design approval process to run on and on. The committee should react definitively at the presentation(s) and insist that the designers respond quickly with any alternate selections requested by the committee. Also, don’t allow committee members to over-study every selection, as this can lead down a never-ending path of unnecessary changes that will have a detrimental effect on the final product. A lack of efficiency by either party in the design approval process can substantially derail your project schedule. Renovating club facilities is always an exciting time for any membership. It can be especially exciting, as well as emotionally fulfilling, for those on the front lines – the board of directors, the design committee and your interior design professionals. However, the excitement can diminish quickly if there are problems in the design process. Following the above recommendations will help ensure the process runs smoothly, with only minimal bumps along the way. These recommendations will also contribute to achieving everyone’s ultimate goal - a beautiful and successful project that your members will enjoy for the next 10 years! BR
BoardRoom magazine
Excellence in Achievement Awards The BoardRoom magazine “Excellence in Achievement” Awards is the only private club industry award that recognizes the clubs’ business partners. BoardRoom magazine’s industry peers review and select these outstanding suppliers and consultants, which represent various aspects of course and club operations. Winners, each year, are selected for overall excellence in their respective fields, achievements, innovation, vision for future growth and continued impact on private club operations. “The BoardRoom Awards are the only awards in the private club industry that recognize private clubs’ business partners, and every year we see increasing innovation, achievement, a vision and dedication from BoardRoom Award recipients. And of course, private clubs are the beneficiary of outstanding work of the industry’s vendors,” said John Fornaro, publisher of the BoardRoom magazine. The BoardRoom magazine is the only publication of its kind that is designed to educate the board of directors, owners, general managers and department heads of private golf, city, yacht, tennis and country clubs about issues concerning all aspects of the club, golf course management and operations. LIFETIME ACHIEVEMENT
ARCHITECTURAL DESIGNER OF THE YEAR*
CLUB SOFTWARE FIRM OF THE YEAR
Jerry McCoy
Rogers McCagg Architects | Planners | Interior Designers
Northstar
ARCHITECTURAL DESIGNER OF THE YEAR*
Peacock + Lewis
BOARDROOM AWARD OF DEDICATION
Jeffrey P. McFadden GARY PLAYER EDUCATOR
Ray Cronin EDUCATOR
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MAI | Marsh & Associates, Inc. ASSOCIATION OF THE YEAR
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Pipeline Marketing ACCOUNTING
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Sports Solutions APPAREL PROVIDER OF THE YEAR
High End Uniforms
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CHAIR MANUFACTURER OF THE YEAR
Daniel Paul Chairs CLUB PHOTOGRAPHY FIRM OF THE YEAR
EA Photography CLUB PROGRAM OF THE YEAR
KECamps CLUBHOUSE SIGNAGE OF THE YEAR
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Denehy Club Thinking Partners COURSE ARCHITECT (RENOVATION) FIRM OF THE YEAR
Bobby Weed Golf Design CRM
Pipeline Marketing DESIGN OUTDOOR ROOMS
C2 Limited Design Associates EXECUTIVE SEARCH FIRM OF THE YEAR
Kopplin Kuebler & Wallace F&B MANAGEMENT SOFTWARE OF THE YEAR
FOOD-TRAK/System Concept, Inc.
FURNITURE MANUFACTURER OF THE YEAR
LOGO APPAREL FIRM OF THE YEAR
REAL ESTATE SERVICE FIRM OF THE YEAR
Gasser Chair Company, Inc.
Ambassador Uniform
Hilda Allen Real Estate
GOLF COURSE ARCHITECT OF THE YEAR
MANAGEMENT COMPANY OF THE YEAR
SERVICE FIRM OF THE YEAR
Richard Mandell Golf Architecture
Troon
Talent +
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SOCIAL/CASUAL DINING INTERIOR DESIGN
George Golf Design
Chambers 360° Club Planning & Design
C2 Limited Design Associates
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STAFF TRAINING COMPANY OF THE YEAR
Billy Casper Golf
Creative Golf Marketing
RCS Hospitality Group
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ClubIQ
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Lichten Craig Architecture + Interiors
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MEMBERSHIP SUSTAINABILITY
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Image Design, Inc.
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C2 Limited Design Associates
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HINT | Harris Interiors
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DEI Food Service Equipment & Design
Big John Grills
Style Upholstery
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PAYROLL PROGRAM OF THE YEAR
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*DENOTES TIE
NOVEMBER/DECEMBER 2017 | BOARDROOM
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RONALD F. CICHY
EXECUTIVE COMMITTEE
MIRAN KIM
Ronald F Cichy, O.M., professor and MiRan Kim, assistant professor, are with The School of Hospitality Business, Michigan State University
Communicate from the Front Two of our latest research questions are: When you are a leader (i.e., member of the board of directors), how do you effectively communicate from the front (i.e., from a place of leadership)? And as a board of directors’ member, what are some of the effective communication channels with multiple groups and individuals? These are two of our latest research questions focusing on private clubs. Board leaders communicate with others – the general manager/chief operating officer, paid executive leaders, volunteer leaders who serve on the board and committees, talent (formerly known as staff members), supervisors and managers, member owners, and the community. The board members serve as ambassadors to the local community, and board members communicate with their words and actions, and by their behaviors they model for others.
tones of voice and body language. Face-to-face gives all the opportunity to hear and see and feel the message. Perhaps people join a club to boost their face-to-face communication, in contrast to the electronic communication every minute of every day. Face-to-face may also be effective through Facetime (an online video communications tool). Rather than simply hearing the voice of another, as is the case with a phone, a moving image of the other is displayed. Using Facetime, emotions can be felt and the meaning in voice tones can be sensed. Body language is observable. Through this platform people can connect around the globe. Facetime and Skype and other such media project the images, as well as feelings, thoughts, as well as emotions. Emails are the choice by some because they permit a written documentation of what was communicated. Emojis can be added to emails to complement the feelings-free communication of words only. Emails are more professional, so using them in a career setting is preferred to a group of friends.
Boards of director leaders are at the front of the club. Those who understand how to communicate effectively in a variety of ways, based on the recipients, get their messages through to others – leading from the front. In our latest feedback from Millennials, they pointed out that a variety of communication methods may be effective, based on the needs and wants of the person receiving the communication and the message being communicated and the makeup of the groups. Of course groups are made up of individuals so an understanding of the individual’s communication preference is at the core. It is the responsibility of the person at the front to try a variety of ways and then understand which methods are most effective. Millennials suggested verbal communication most frequently. When board members communicate with others face-to-face, it is most effective. Board members represent all the other owner –managers in the club, and when the members of the board communicate with others in the club face-to-face, it is more personal. Communicating in person can result in clarity of the message, and perhaps the least amount of confusion. In face-to-face communication, people add meaning through 44
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Groupme and texts are effective with those who are technology users and adept at communicating this way. Groupme and texts enhances a concept called “reverse mentorship.” It’s a situation where a younger member or talent mentors a board member regarding the use of technology for communication. The younger are mentors to the seniors. Telephone and text messages are other methods mentioned. These are quick, to the point, and effective if both people feel comfortable in using this form. Given a choice of the two, some prefer phone; others feel awkward using it. In texts, adding emojis – smileys – sharpen the feelings being communicated. Text messages with phone call follow-ups are more effective than either one alone. Boards of director leaders are at the front of the club. Those who understand how to communicate effectively in a variety of ways, based on the recipients, get their messages through to others – leading from the front. BR
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GORDON WELCH Gordon Welch is the president of APCD – The Association of Private Club Boards. He can be reached at (918) 914-9050 or gordon@apcd.com
EXECUTIVE COMMITTEE
Our Industry Is Strong! Simply stated, private clubs that pay attention to the generational needs of the membership and have strong leadership, both managerial and board will continue to remain relevant in the lives of members and individuals in their communities. Today’s membership is diverse and difficult at times. Baby Boomers are aging but not dying as quickly as once thought. They are living longer and with new knees and hips are active longer than anticipated. Gen X has many questions and their loyalty is not as strong as that of their parents. They are, at times more skeptical, more independent and have a strong sense of entitlement. Management and boards are now anticipating the needs of Gen Y, a group that is at ease with teams, focused on children and family, and sometimes eager to spend money. They are also focused entirely on technology, have great work-life balance and are dedicated to self-improvement. The good news is they are collaborative and use their network to support things they are interested in.
400 clubs will close this year and possibly more because of the natural disasters we have seen in the U.S. Clubs are changing at a pace never seen before. The private club board must be diverse. Boards must reflect the future needs of the club; not today’s needs. If your board is not providing management with the tools and resources for today’s needs you will be one of those closing. How inspired is your board? Does your board look like the future of your club or does it look like the past? If your board talks about “the good old days” you are in trouble. I’m not saying the historical information is not necessary but I am saying that if you’re not keeping up you will not be relevant to tomorrow’s member. Clubs must push forward and reflect the future. Executive committees and management must begin to identify future leaders and place them in relevant roles to move them into leadership. Our world is changing every day. Climate change and nuclear worries could drive the Gen Y member to cocoon again. They will have small groups of close friends and will
Clubs are changing at a pace never seen before. The private club board must be diverse. Boards must reflect the future needs of the club; not today’s needs. If your board is not providing management with the tools and resources for today’s needs you will be one of those closing. Clubs must continue to be actively changing, updating and advancing facilities and services. Food and beverage must be both exciting and new and have alternatives for gluten-free and plant-based diets. Alternative sports will be needed to keep interest for new members. Golf, tennis and swimming aren’t going away but shorter golfing alternatives, pickleball and fitness and spa facilities that can be enjoyed on short notice will be very popular alternatives. Clubs need to be more fluid in adopting to the generational differences as, if not before, they happen. While the future is bright, there are still clubs that are closing. These are lower level clubs without leadership or facilities that inspire new generational needs, clubs that lack governance and structure that’s needed today. At least 46
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spend their time with each other physically or virtually. You must be prepared to promote your club to these families. In the aftermath of hurricanes Henry and Irma we will be expecting insurance companies to bail out our industry again. Losses will be in the billions in Texas and Florida. Fear of global warming-induced hurricanes and natural disasters along the coastline, tornadoes in the Midwest and fires on the west coast will keep companies from writing insurance for clubs. Boards should be prepared to pay the increased cost of insurance. Clubs cannot “save” their way into the black. You must be prepared to increase dues, fees and grow your savings for the future. The future is bright and strong but you must plan today for your club’s next 50 years. BR
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EVAN HACKEL
HOUSE COMMITTEE
Evan Hackel is CEO of Tortal Training, a firm that specializes in developing and implementing interactive training solutions for companies in all sectors. Evan is principal and founder of Ingage Consulting, a consulting firm headquartered in Woburn, Massachusetts. To learn more about Ingage Consulting and Evan’s book Ingaging Leadership, visit Ingage.net.
Why Training Means a Lot to Millennials When Baby Boomers took their first “real” jobs upon entering the workforce, their demands and expectations were ridiculously low by today’s standards. On their first day on the job they got an employee handbook that they took home and scanned while eating dinner or watching TV. Company training, if there was any, was minimal. For the most part, they accepted the idea that it was normal to feel ignorant and unskilled in the first weeks or months on a new job. They expected to “learn the ropes” by making mistakes. When it came to promotions, most Boomers were equally willing to proceed by trial and error. Nobody told them, “Here is just what you need to do to get ahead in our company . . . here is the next position we’ll be considering you for.”
Ample research documents that Millennial attitudes are different. One major study from Gallup, “How Millennials Want to Work and Live,” reports these findings: • 60 percent of Millennials say that the opportunity to learn and grow on the job is extremely important. In contrast, only 40 percent of Baby Boomers feel the same way. • 50 percent of Millennials strongly agree that they plan to remain in their jobs for at least the next year. That might sound like a big percentage, but 60 percent of members of all other groups plan to stay in place for at least a year. Baby Boomers and others are planning on sticking around, while Millennials are weighing their options. Learning and training are key to retaining millennials and maximizing their productivity
Enroll new employees in management training programs from their first days on the job. Millennials like to know their next steps as they build their careers, and training is a fine place to explain them. Training is important. They are the most energized, skilled and capable generation ever to enter the workforce. Train them well and they will become your organization’s brightest future.
Was there feedback? Of course, there was. There were quarterly, semiannual, or yearly job reviews that usually followed the script, “Here’s what you’ve been doing wrong, here’s where you need to improve—so do it, session over.” In short, many Baby Boomers were happy to toil away in black boxes, learning jobs and building careers in a loose way that would seem absurd to the members of today’s younger Millennial workforce. DIFFERENT EXPECTATIONS AND DEMANDS
Boy, have things changed. Today, most Millennial workers would object strenuously to the same kind of conditions that Baby Boomers (and members of the generation that preceded them) thought were normal. If today’s Millennials start new jobs and discover conditions like those in a new workplace, they are going to start looking for new jobs in a matter of hours. 48
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Findings like those – and you can easily find more – document that Millennials are more likely to be engaged and to stay on their jobs if they have opportunities to plan their career paths and learn. Here are the trends: • Millennials like to feel capable and confident in their jobs. Millennials do not like to feel like rookies. Many think of themselves as leaders – or as leaders who are waiting to be discovered. They want to look good, and thrive on being able to confidently contribute from the first day they arrive on the job. The right kind of training– both for new and current millennial employees– makes that happen. • Millennials are usually skilled students. They like to apply the learning skills they built while they were in school. To them, learning feels as natural as eating three meals a day. As the Gallup study found, they are eager to
learn. In contrast, getting Baby Boomers to believe in training can be a harder sell. They tend to view training as a burden, something they have to endure. Millennials say, “Wow, when can I start?” • Millennials are tech-friendly. Most of them love to be trained on their mobile phones and tablets, which are the most powerful training options available to many companies today. The result is better knowledge transfer, even to groups of employees who work in multiple or far-flung locations. Baby Boomers, in contrast, are more tech resistant. They are likely to freeze and resist when they hear they are going to be taking company training on their smartphones. Training is the place to build Millennial productivity and retention. A lot of training focuses on teaching needed skills. It should. But training can accomplish a lot more than that, if you use it to establish some of the following things that many Millennials are looking for: • Mentoring relationships with their supervisors. Gallup found that 60 percent of Millennials feel that the quality of the people who manage them is extremely important. With that in mind, your training for new employees can set up mentoring, not reporting, relationships between them and their managers. Explain how often check-ins and job reviews with their managers will happen,
and what they will cover. And schedule frequent check-in rather than “on the calendar” pro-forma reviews that both managers and the people they manage find boring, or worse. • A sense of belonging on an energized and innovative team. This is a bit of a contradiction, but at the same time Millennials think of themselves as individualist entrepreneurs, they also expect to be part of an interesting team. Letting Millennials get to know their teammates during training, and fostering a sense of team/group identity, can help convince them that they have joined the right organization. • A well-defined career path. Consider creating a personalized career development plan for all new employees (the exception being seasonal or other short-term workers who will probably not remain with your company for long). Another idea? Enroll new employees in management training programs from their first days on the job. Millennials like to know their next steps as they build their careers, and training is a fine place to explain them. Yes, training is important to Millennials. They are the most energized, skilled and capable generation ever to enter the workforce. Train them well and they will become your organization’s brightest future. BR
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Michael crandal, cnG
insights
The letters after our author’s name Michael Crandal, CNG stand for: Certified Nice Guy. Self-certified, by the way. But, a nice guy nonetheless. Michael provides meaningful interim GM/COO services and employee development programs. He lives in the Buckhead area of Atlanta, GA. www.linkedin.com/in/michaelcrandal or (760) 464-6103.
Expectations for the Coming Year Do the math (Meeting) + (Exceeding) = Not Enough There is only one thing you can give your members if you want to stay viable and that is: Give them what they want. But some may exclaim, “Are you kidding? All our members want is more! And all they want to pay is less! What am I supposed to do if they have unrealistic expectations?” This sort of thinking drives home the importance of management projecting a proactive vision to help cast and mold the expectations of the membership in a positive, yet realistic, direction. In other words: Wants and expectations can be somewhat professionally guided and influenced by effective leadership from the top. Much of this comes from the board level via general policies that accurately reflect the culture, changing times and purpose of the club. But, much of this also must come from the operational side of the equation, specifically where actual membership day-to-day experiences take place. The greatest factor toward establishing expectations. It is the manner and spirit in which member experiences are proactively and seamlessly orchestrated in a professionally prepared pre-flight plan before ever leaving the runway at every point of contact. This starts from first entering the club property until departure — and every experience in between. If the primary focus is on meeting (or, even, exceeding) the expectations of the membership, the fact is, there is a very strong undercurrent perpetually pulling the team into a reactive mode, always responding to the latest expectation of the moment. “Gee, what do they want now? And, what about now? Now? And, now? And …” Who likes to fly by the seat of their pants? The internal expectations of a top-flight management team should be consistently flying higher than those of the members! The team needs to perpetually be in a proactive mode establishing expectations that the membership is always amazed at experiencing before they even know they are going to experience it! There is a very subtle difference here. But a dramatic one. In fact - a pivotal one. It’s the difference between being reactive and proactive.
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Fostering a culture of the professional staff actually establishing the expectations of the membership (rather than simply responding to them) may seem daunting to some. But be proactive in creating a daily flight plan. Flying, itself, was an impossible idea, but a great one! Team productivity is similar to a computer in that if you change the input, you automatically change the output. Of course any input from any member is warmly accepted and immediately addressed. But don’t wait to simply respond to their input. Instead get the team together on a regular basis and proactively go through every potential member point of contact before there is any chance for input. Before ever heading towards the runway — go over every check point of potential contact and proactively put everything through the team filter of, “How can we make this: easier — faster — more engaging — more fun — and more delightful for our members! And remember that a great flight plan is perpetually updated and in play at every point of contact. Focus on establishing great expectations, rather than just meeting, or even exceeding them. 1. Evaluate — where you are now. 2. Envision — where you want to be. 3. Think — about creative ideas, and ultimately … 4. Transfer — your team’s great ideas into a daily action flight plan! Does your club want to get to that so-called next level by raising the bar? Great! Create a flight plan and then take to the skies! Bing Bong! The captain has just turned on the creative thinking light. Your team is now free to establish expectations higher and more delightful than ever before. Again a very subtle difference here, but a dramatic one indeed. Happy flying! BR
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rick ladendorf
wellness committee
Rick Ladendorf is the president of Prevo Health Solutions, Executive Producer of the AMERICA’S HEALTHIEST CLUBS© Network and Founder of the Wellness Project™. Contact Rick Ladendorf at (949) 933-5470 or rick@americashealthiestclubs.com or rladendorf@prevohealth.com
It’s all about ME!
Where ME Equals the Member Experience and an Emphasis on Health, Wellness and Happiness So much of life isn’t about having the right answer; it’s about knowing the right question. – duane hewitt. For years, while consulting with and helping hundreds of clubs enhance their wellness programs, the focus of the conversation often is about the how and the what, when the real issue and underlying motivation is to better understand the why or purpose. The most important question a business can ask is: “What purpose does my business serve.” That said, there are three types of purpose. 1. Commercial, which is primarily about financial goals 2. Brand, which is about your member ambition, and 3. Social, which is about your societal vision Purpose must be what you measure business performance against. You need to know whether you were doing what you said you would do, and whether that is converting into the member and financial performance you want.
• Why are trends indicating member visits to the fitness center are exceeding golf rounds at many clubs? • Why are chefs so concerned about buying fresh, local, seasonal and organic ingredients? • Why should the club offer a workplace wellness program for the employees? The answer to every one of these questions is simple, “It’s all about ME”, aka, the member experience, where the “member experience” is nothing more than a continuum of happiness. Most general managers say, “Private clubs are in the dues business”, which is true. But in reality, private clubs are also in the “happiness business”, so it behooves us as leaders to look at wellness strategically. Your long-term sustainability may depend on developing a culture that focuses on the health, well-being and happiness of the member and staff.
For many club managers and boards, the word “wellness” creates anxiety and undue stress and the primary reason is they don’t understand the why, nor do many take the time to define the club’s purpose. The question is, what actionable steps can you take today to help improve the member experience? To drill deeper, board members and club leaders should be asking themselves more specific questions to help better define the club’s purpose. For example: • Why should your club care about the health and wellbeing of its members and or staff, and how does that benefit its commercial, brand or social purpose? • Why are so many other private clubs building, remodeling or expanding fitness centers and does it make sense for your club to invest in new fitness or wellness amenities? • Why are clubs investing time, resources and capital in wellness programming, activities and events? 52
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If a member is not happy they won’t use the club and are the most likely to resign. If they are happy, they refer their friends, use the club and spend their time and money at the club. So, it stands to reason, happy members are good for recruitment, retention and usage. WellneSS iS a lifeSTyle
A new study in the journal Mayo Clinic Proceedings, looked at data from a nationally representative sample of 5,000 people to see how many hit the four healthy targets.
Here’s how the researchers defined each target: • Exercise: If you wear an activity tracker, will it show that you exercise at a moderate or higher intensity for at least 150 minutes per week? • Diet: Do you adhere to the federal government’s definition of a good diet, which emphasizes ample produce and limited saturated fats, sodium, and added sugar? • Body composition: Does a body composition scanner show that you have a body fat percentage between five and 20 percent if you’re male, or eight and 30 percent if you’re female? • Smoking status: Can you pass a blood test proving that you don’t smoke? The results: Just 2.7 percent of the study participants hit all four benchmarks. How can this be? Who did they survey? Did they look inside the gates of a private club? While this data may be true overall, my educated and informed opinion is not consistent with the survey data. Our data from over 50 of the top private clubs indicates that a much higher number of private club members live a healthy lifestyle, when compared to the Mayo Clinic Proceedings. Four healthy lifestyle indicators from America’s Healthiest Club Survey data 1. 32 percent. The average percent of members that frequent the fitness center at least once per week. 2. 95 percent. The average percentage of chefs that “rehab” menu items to limit fats, sodium and sugar. 3. 9 percent. The average percentage of members that use a personal trainer. 4. 89 percent. The average percentage of fresh, organic, seasonal and locally grown ingredients purchased by the chef. 5. 100 percent of clubs offer the staff exceptional benefits, incentives and access to the tools and resources needed achieve and maintain a healthy lifestyle. When compared to the Mayo Clinic Proceedings, these numbers indicate the number of members and staff of a private club are much healthier than the subjects studied in the Mayo Study. The reason is likely the fact that members of a private club fit into a category of educated, successful, wealthy business people, politicians and community leaders. These one-percenters have access to and the wherewithal to hire personal trainers, chefs, health coaches, nutritionists and consultants to help achieve personal goals. And they are typically type “A” personalities that have the drive to set and achieve goals.
TakinG acTion
Wellness is a verb that describes the state or condition of being in good physical and mental health…a generic word that includes the mind, body and soul. An “umbrella” word that can be achieved by clubs through fitness, nutrition, spa services, education, farm-totable programs, workplace, prevention, mental health and a host of other recreational activities including golf, tennis, pickleball, bocce ball, walking and cognitive activities like card playing. For many club managers and boards, the word “wellness” creates anxiety and undue stress and the primary reason is they don’t understand the why, nor do many take the time to define the club’s purpose. The question is, what actionable steps can you take today to help improve the member experience? First, understand your clubs purpose and then do what it takes to understand your members’ purpose. By doing so, you will have unlocked the secret to their happiness. Understand what makes them happy and they become members for life. Life-time and loyal members refer their friends, spend more and help to create wait lists. Full-memberships help keep the balance sheet and the P&L looking good, which in-turn makes the club’s board. At the end of the day, wellness is a strategy that attracts and retains members, increases usage and spend and enhances the member experience. a purpoSe
Stephen LoGiudice, general manager and COO of The Club at Ibis in Palm Beach Florida recently spearheaded a strategy to change the club’s name from Ibis Country Club to The Club at Ibis. Why? To re-brand the club to reflect its purpose of being a lifestyle destination. To go further The Club at Ibis created a sub-brand – CORE4 “Community Resort Experience” where the four principles are: Integrity, Belonging, Innovation and Shared Vision (IBIS). CORE4 is more than an acronym, it is the clubs purpose, their why and is reinforced in the daily line-ups across every department. And The Club at Ibis branded the wellness initiative as the “Body Mind Connection”, which appears throughout the club’s communications in the fitness, golf, tennis and the food and beverage departments. A Club at Ibis member said it best, “You can buy a home anywhere, but at Club at Ibis it’s the intangibles of the friendly casual family atmosphere, along with the ultimate in service and amenities that I have never seen duplicated… it is an experience of a lifetime!” BR
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bonnie J. knuTSon
MeMBeRship Musings
Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of Hospitality Business, Broad College of Business, Michigan State University, Dr. Knutson is a member of the Country Club of Lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu
Is Your Club Even Relevant Anymore? for years now, the marketing world has preached the virtues of positioning your brand as unique. as different. as poles apart from the competition. as not the same as every other brand in the same category.
After all, Burger King flame-broiled their burgers while Wendy’s had the big juicy square adult burger. And the Golden Arches was our respite because we “deserved a break today…at McDonald’s” (I don’t know about you, but if I deserve a break, it will be getting a massage or sitting in a Jacuzzi with a huge sweet ice tea in my hand.) To paraphrase the title of the 1962 Tony Award winning Broadway musical, “A Funny Thing Happened on the Way to the Forum” a funny thing has happened on the way to the altar of uniqueness. We figured out that just being unique doesn’t cut it. Or maybe I should say that our customers/members are telling us that being different isn’t enough anymore. It doesn’t matter whether you are a butcher, a baker, a candlestick maker, or the manager of a great club, the same thing is true. It is not enough for you to position your brand as matchless. You see, we are in a big paradigm shift because marketers are really beginning to understand and accept the fact that how we feel and what we think governs what we do. It determines whether or not we join your club. It determines if we put together a table for the annual New Year’s Eve gala. It determines if we hold our annual charity golf challenge at your club. And, most of all, it determines whether we stay as loyal, active members and be advocates for the club. But there is another “magic” tool in for you in your club’s toolbox. Relevance! To better appreciate the why of adding this new tool, we need to understand the how of it – how it differs from the whole notion of uniqueness. Being different simply means how distinguishing your club is to your members and potential members. In other words, you have something your competitors don’t have. And it is clear and everyone recognized it. On the other hand, being relevant means how important or meaningful that point of differentiation is to members and potential members in your target market area. A case in point. My dream car is a bright red Lamborghini convertible. I envision myself roaring down a winding 54
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road with the top down and my hair flying in the wind. Let’s face it, that spectacular Italian automotive vision is distinctive, and it is certainly unique in the world of luxury automobiles. But for how many people is it pertinent? Relatable? Important? Relevant? Not me. On the other hand, take the Disney theme parks. Are they unique? Definitely. And are they relevant, important to a lot of people in the market? Again, definitely. It seems everyone wants to see Mickey Mouse. I recently was told about a mother who walked into a travel agency to book a three-day vacation for her family at Disneyworld. She had scrimped and saved from her household budget for more than five years to afford to go. Just short of what she knew she would need, this young mother decided that she would be able to earn the rest if she sold her blood plasma for a year. That is brand relevance. Y&R, the iconic brand strategy agency, has developed an algorithm to compute what they call brand equity based on how different and how relevant a brand is. While your club may not have access to their methodology, you can begin to get a picture of how your point of differentiation and your relevancy to members relate to your club’s brand equity. First, draw a simple four-quadrant square – the kind used for menu engineering. Label the horizontal axis as uniqueness/difference and the vertical axis as relevant to members. Now, position your club, as well as your competition, in their respective squares. My Lamborghini, for example, would be very high on uniqueness but low on relevance to people in my target market. Disney, however, would also be score high on uniqueness, but it would also score high on relevance to people across myriad target markets. This simple graphic exercise will give you valuable insights into how strong your club brand is in your marketplace. Remember, you can’t be all things to all people. Not everyone can be a club member. You just have to offer a point of differentiation that is important (relevant) to those who are or could be members. Think of it as moving your brand equity from being a plow horse, a puzzle, or a dog, into the star category. See MeMberShip MuSinGS | 85
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Macdonald niven
on the fRontlines
MacDonald Niven, MA, MCM, CCE is with Niven Research and general manager of Almaden Golf and Country Club, San Jose, CA. He can be reached at (510)-439-8522 or via email: mac@niven.cc.
Hold the line! “chris, this is going to be a pivotal year for us financially. last year we held the line on dues with no increase and it worked out just fine. you did a great job and we saw no change in service or quality. We need the budget to be balanced and the dues line held with no increase.” According to a group of 192 managers and directors with whom I communicate regularly, Chris’ plight is very common. We learned that, at one point or another, nearly all of the managers have faced this board directive. They responded with some sage advice. One of the managers within the group sent the following statement for consideration: The directors have wanted to keep dues stable and we have had no increases for the past five years. The directors believe this to be an appropriate business model. From this statement, we created four pertinent questions then sent to the group for consideration and response: Is this a good model? If you have been part of this model, what did you do to handle the operations under the restrictions of no dues increases? Were there shortfalls and how did you fund them? If you believe this model to be flawed, were you able to change the model, and if so, how? Of the 64 responses only two felt the policy was appropriate, but neither advocated for no funding: “No dues increase is OK, if they assess for capital improvements and any annual operating shortfall.” “Dues are driven by assumptions which reflect the philosophy of the club. Agree on the assumptions and the dues are easy to calculate. If the dues assumptions include, as ours did, a dues level that funds proper reserves for the future (contingencies, replacement costs, anticipated capital improvements, etc.) and if operations are covered by revenues and ‘dues-after-reserves’, my club saw no reason to increase dues arbitrarily. The prevailing opinion in my club –why hold / bank member money when there’s no good reason for doing so?” Both of these responses had a mechanism for funding needs. Responses pertaining to the restriction of no dues increase, and the implicit “no additional funding from membership” were less gracious with responses such as: “Model is terrible” or “This is a dangerous game to play.”
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Each manager involved with this model has stated that there were inordinately large dues increases at the end of the no dues period that were required to make up for the lack of increases. They further stated that the large increase caused dissention amongst the members, whereas, consistent and small increases yielded very few complaints. The general group consensus is that dues should reflect the philosophy of the club and should be derived by the budget, not the starting point of the budget. Dues should be driven by the assumptions. If there is upward pressure on the dues because of increases in budgetary needs, those needs must be addressed during the budget process. It was clear that attempting to falsely hold dues in line only made the problem worse as the year progressed, resulting in planned services being cut, cash reserves being depleted, or borrowing to cover the short-fall (including allowing payables to increase). It’s also clear that managers who successfully avoided this pitfall did so through education. They took time and effort to show the directors the projected costs and the reasons behind the increases. An important aspect is to avoid the trap of, “We’ll make it up from increased outside revenue.” Putting false hopes into increased revenue, particularly from food and beverage, almost guarantee that the club will end up being behind budget, but then cause strain on the staff being held to an impossible budget. Unfortunately, this sort of planning leads quickly to the demise of the GM! It’s often forgotten that the margins on food and beverage are slim, at best, and that, while adding another $50,000 in revenue looks attractive, the bottom line may net as little as $5,000. A private club with good historical revenues will have difficulty adding another $50,000 in revenue unless there are extraordinary circumstances, but it only takes a moment to add that number, or more, to a spreadsheet making the numbers come out as we’d like them. Hoping for revenue is a recipe for disaster. See on The fronTlineS | 85
peTer nanula Peter J. Nanula is chairman of Concert Golf Partners (www.concertgolfpartners.com), an owner, operator and all-cash buyer of private golf and country clubs. Concert Golf specializes in recapitalizing member-owned clubs carrying too much debt, converting them to non-equity status, and maintaining the clubs as fully private.
MeMBeRship committee
Waiting Lists Wait, what? Are those still a thing? despite the many challenges faced today by private clubs (and their boards), waiting lists are, in fact, achievable. We have them in place at two private clubs that we acquired in just the last few years. Most clubs today, while they’d kill for a wait list, would settle for strong new membership sales flow — and member-owned clubs (and their boards) can turn this trick. But they need to fully understand the terrain, their own staff capabilities, their own behavior and their own markets. Here are the issues: 1) Member-owned clubs struggle with several real impediments to membership sales success. First are Internal Revenue Service rules limiting the kinds of marketing in which a 501(c)(7), not-for-profit entity can engage. A professional club hospitality firm like ours, for example, operates on a for-profit basis and, like the best hotels and restaurants, is not subject to these strictures. This a big leg up for companies like ours and a big impediment to member-owned 501(c)(7s). 2) Next, many member-owned clubs are fighting for a small pool of “clubbable members” in their area with outdated approaches. Sometimes there is no membership director at all. Often a part-time, volunteer group of members with very busy day jobs tries to manage the membership effort by committee. Some do better than others but compared to a highly qualified, well-paid membership sales person (someone who frankly commands professional-grade compensation), these member-owned clubs are working from another serious disadvantage. 3) Often the challenges run deeper, to board culture and leadership. For example, the elected president and executive committee may dictate a golf-only or highly golf-centric ethos at a club, where another market imperative (such as appealing to younger families with a broader set of amenities) is called for. Some boards are truly savvy, flexible and opportunistic — but forgive me when I say, it’s rare. What’s more, board
leaders may run a club with an ultra-exclusionary mindset, “posting” new member applicants in the lobby, requiring six rounds of golf with the membership committee, or giving veto rights to 250 other members. These clubs routinely wonder aloud why their memberships are flat or shrinking. We politely point out their visible “please do not apply here” reputations locally. 4) Skilled membership marketing consultants can help with membership sales. These efforts often generate new leads and new memberships by helping boards combat the issues cited above. However, after six to 12 months this sort of progress is typically not sustained. I don’t blame the consultants. The good ones tell board members they need capital expenditures to update their facilities and to modernize their approaches to dining and to families with kids. Consultants are likely to advise clubs to eliminate their debt and eliminate (or greatly curb) member assessments, which are enormous membership sales barriers. They are spot on with all these directives, but it’s been my experience that boards seldom connect membership initiatives with capital investment (and balance sheet) initiatives. A new membership drive can only take your club so far without the capital and professional hospitality to sustain it. When a club finds a truly talented membership sales consultant, that club really needs that person in place for three to four years — to help institute these broad institutional changes. Problem is, consultants are lone wolves for a reason. They do a job and move on. It’s very expensive to convince them to stay for the long term. The bottom line here: Creating a membership waiting list is really hard work. Individual equity clubs can get this done. We have seen that sort of success at member-owned Amarillo Country Club in Texas, where the board utilized a leading membership consultant and passed a combination of dues increases and assessments — to fund capital imSee MeMberShip MuSinGS | 85 NOVEMBER/DECEMBER 2017 | BOARDROOM
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roSS liGGeTT
MeMBeRship committee
Ross Liggett is director of marketing & revenue management for Landscapes Unlimited. At Liggett’s direction, LU courses now utilize an integrated technology stack that allows them to be nimble while collecting vast amounts of business intelligence data. He also facilitates best practice sharing between properties via monthly webinars, conferences and LUConnect – an interactive intranet.
Don’t Be Derelict: Get Your Club Using A CRM When it comes to technological advance, the golf business is somewhat notorious for arriving late to the party. customer relationship management (crM) is yet another example, but take heed, board members: better late than never. Let’s first define our terms. CRM refers to a wide range of practices, strategies and technologies that manage and analyze customer interactions (and data) throughout the customer lifecycle, with the goal of improving customer relationships, assisting in customer retention and driving sales growth. CRM systems are designed not only to compile – in one place – all the information you have on customer’s past, present and prospective. It stores that information according to point of contact (website, telephone, live chat, direct mail, marketing materials or social media) and enables ongoing sales and marketing communication via any/all of those channels.
we gain/lose last month?” Unfortunately, without a CRM system, that information often comes way too late. If a club had a bad August, it might take a board 30 days to realize it, 30 more days to implement a response plan, then 30120 to reap the result. CRM technology allows boards to see how many leads came in last month versus how many the club needs. It allows your club’s sales, marketing and management employees to look deeper into the sales cycles, as well — to identify trends before it’s too late to act. There are so many things a CRM can do for you: Electronically it will deliver contracts (which we’ve found is a far more professional and efficient way to handle this mundane task). It will integrate and sync all your department calendars, in real time, so that anyone (at any time) can see exactly what’s happening at your property. When someone goes to your website to fill out a request for information, that information is delivered directly into
CRM stores data safely in the cloud. It ensures all contacts are easily transferred when staff turnover occurs. It organizes disorganized people and processes, and it gives club managers a deep look into the sales process so they can coach for success. Traditionally, sales and marketing offices are a hodgepodge of different databases, sticky notes, overstuffed folders, master calendars and random notebooks. Let’s say your sales manager is getting ready to send a spring membership offer to everyone who has expressed interest in the club over the last 24 months. For a truly organized person, building the list may take all day. Hours more will be spent scrubbing the list and sending dozens of emails. For a disorganized person, this process will take days or even weeks, depending on how integral sticky notes are to that person’s process. With a CRM in place it takes just minutes to create a custom list and send a personalized email to every prospect. CRM software aggregates all the sales information your club generates and puts it in a single place. From that single place, anybody in the organization – the sales and marketing director, their assistant, the GM, the board president– can assess the sales picture instantly. This sort of immediacy is important. As you know, every board meeting includes this question: “How many members did 58
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the CRM — where that lead is immortalized forever, without managers having to do a single thing. When visiting prospective client properties, I am continually amazed to learn that most do not maintain a single database of those leads, or customers, or former customers. This is something that can be done without a CRM, of course. But still. That’s astonishing. “Do you have a list for everyone who’s requested info re: golf outings?” That’s another question often met with blank stares. Ninety percent of the time that list doesn’t exist, and that’s a real miss on the sales side. Bottom line: You have to know how many membership, event and golf outing leads are coming in and converting. You have to know, proportionally, exactly how those leads are coming in — so you can concentrate efforts on sales channels that work. CRM does that, and so much more: It stores data safely in the cloud. It ensures all contacts are See MeMberShip coMMiTTee - liGGeTT | 85
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Mike phelpS Mike Phelps is principal and co-founder of Pipeline, a marketing agency for membership clubs, residential communities and unique experiences. www.pipeline-inc.com.
MeMBeRship committee
Astrology, Tribes and Why Rolex Matters to Millennia I’ve come to realize that when it i hear Millennials like wine. and they’re tech-savvy. and they seek out personal recomcomes to private club marketing, mendations and like things to be customized and unique to them. hey, me too. the concept of Millennials is just The marketing world speaks of Millennials and Gen-Xers and Baby Boomers as too limiting. It’s time to embrace a though every member of a birth cohort is somehow compelled to make their decimore accurate picture. sions based on a single, shared set of values determined by the year in which they What matters to your prospecwere born. tive member has little to do with It’s a lot like listening to people who believe in astrology, convinced that your fate the year they were born. What is somehow determined by your birthday. matters are the desires and beliefs As older Millennials are now starting to enter “club-joining years”, the private club and values of their tribe. industry is brimming with theories on what makes Millennials tick. Millennials aren’t a tribe. They Recent industry research suggests that when it comes to joining a club, Millennido not behave as a single, cohesive als want convenience, the ability to bring guests, well-maintained grounds and facilbirth cohort. They are a collection ities, excellent service, and consistent costs above all else. Hey, me too. of tribes. Uncovering Generational Attitudes About Club Memberships, research from the Tribes typically form November 2016 study conducted by the Club Managers Association of America and around shared experiences and the Center for Generational Kinetics titled remains tremendous, and should be reinterests such as food, politics, the quired reading for anyone in a leadership role in our industry. arts, faith, fashion, money, health, Among their findings, the study examined generational attitudes in what potential fitness, and sports. We unconmembers are looking for in a club (see graph below). sciously join a tribe when we see When you look at what Millennials want in a membership club, it’s almost exactly and feel and think the same way what the rest of us want. others do on a particular subIn fact, the ranges only differ between generations by between a four to eight ject. Or we share a passion for percentage points – so close as to say (especially to marketers) that the differsimilar experiences. ence is insignificant. Of course, the obvious exception is that Millennials are Tribal marketing simply remuch more interested in a place for family, and kids’ sports and activities. Hey, flects back to a tribe their own I was too. vision and emotion and logic. It’s true. Millennials are not like what we Baby Boomers or Gen-X’ers used to be. Brilliant marketing is built on But then we’re not like we used to be either. this concept. In July 2017, Millennial marketing and research firm YPulse asked 1,000 13-34-year-olds an open-ended question: “Which luxury brands would you actually want to own?” Rolex was among the top 10. Did Rolex alter their designs to appeal to Millennials? Did they lower prices or offer discounts to entice Millennials? Have they been targeting their advertising to 13-34-year-olds? No!
Rolex gets tribal marketing. The Submariner is the watch for the scuba tribe. The Daytona is the watch for the car-guy tribe. The Yacht Master is the watch for the boating tribe. The Air King is the watch for the airplane tribe. The Milgauss is the watch for the technical tribe. The Explorer is the watch for the outdoor tribe. The President is the watch for the business tribe. A tribe is targeted through carefully selected words and stories crafted with a specific tribe in mind, regardless of age. Like Rolex, private clubs represent a traditional industry searching for relevance in a techno-connected world. And like Rolex, our marketing needs to move beyond the concept of Millennials to figure out how to create tribes, attract existing ones, influence them and guide them. Where to start? Here’s one marketer’s humble opinion: • Inclusivity over exclusivity – Exclusivity isn’t a bad thing, per se. But let’s guard against self-righteousness and become more approachable. Tribes care less about the awards we’ve won, or how important we think we are. They care about how important you make them feel. The
role we play in facilitating friendship, fun and purpose in a time when people are yearning for community – that’s priceless and ageless. Our relevance as an industry depends on our ability to think outside the gates and learn the true language of our tribes. • Social media – Social networks play a huge role in “tribal” culture. What makes tribes especially relevant today is the immediacy with which people can come together around shared interests and experiences through social media. But as an industry we are way behind. We need to get past our inherent shyness and use social to engage our tribes. All clubs can tell their story, and Facebook and Instagram offer us the unprecedented ability to gain attention from our precise tribes based on hyper-targeted interests and behaviors. • Clubs as brands – We have to realize that every club is now a brand, or at least we must begin to act like one, if we want to get our intentions recognized by our tribes. We are now in a time where either we take control of our story and get proactive about telling it, or we continue to just let the world happen to us. Or possibly worse, it doesn’t happen at all. BR
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Ted robinSon Ted Robinson is a partner with Private Club Associates and can be reached at (478) 741 7996 or via email: tcr@privateclubassociates.com
MeMBeRship committee
Membership Marketing – Starting from Scratch? - Part I “Start small and start immediately.” cal newport Your club is doing okay now. You’ve been there almost a year, long enough to get your arms around accounting, golf, tennis, fitness – and almost around food and beverage. Now you are getting to membership. The membership director, who has been on the job for just a few months, has all the desired character traits: energy, intelligence, initiative, endurance, dependability, professional appearance and more. However, you discover that this membership director, who was promoted from a food and beverage position, has no membership or sales and marketing training or any appreciable sales experience. And, both the membership director and the club are using very primitive membership systems, if any.
to be effective. A modern electronic membership report that tracks new, lost, upgrades and downgrades, and calculates dues changes and admission and attrition rates is a good starting place. Next, a status report that delineates the membership director’s weekly tasks is a most useful tool and also calculates sales ratios (number of leads required for each tour; tours required for each new membership, etc.) Filling in the initial blanks on these reports requires you to set the club’s annual membership goals – how many leads, how many tours and how many new members must be generated each week in order for the club to meet its annual goals. The third critical tool is a CRM (customer relations management) software program. Most club management systems include this. Others such as Pipeline 360 are readily available and are very cost effective. The CRM is critical as
A status report that delineates the membership director’s weekly tasks is a most useful tool and also calculates sales ratios (number of leads required for each tour; tours required for each new membership, etc.) Filling in the initial blanks on these reports requires you to set the club’s annual membership goals – how many leads, how many tours and how many new members must be generated each week in order for the club to meet its annual goals. Even though your club has a healthy membership roster, upon deeper investigation you recognize the loss of members has for the last three years exceeded the acceptance of new members – and at an increasing rate. Compounding the issue is the changing distribution of categories of new members – fewer “full golf” and more “social”, further eroding the club’s monthly dues line. Your background is food and beverage or perhaps golf, so, how do you “start from scratch” to build an effective effort to attract new members? First, consider outside help. There are a number of very competent membership marketing specific consultants who can provide most of the guidance you need – and many are found in each BoardRoom issue. Be sure the chemistry is right as you and the membership director will be spending a great deal of time together with the professional you choose. With or without independent help, here are initials steps you should take today: Provide your membership director with the tools needed 62
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its proper use keeps the membership director in constant contact with the club’s new member pipeline and helps prevent the loss of a single lead or prospect. Next, complete an analysis of your competitive set – your competitive market analysis (and do this every six months). You should know your competitors as well as you know yourself. What are their products, pricing, competitive advantages and capital improvement plans? Knowing yourself means having a clear vision, a compelling mission statement and a relevant brand position (See “Before You Begin Your Membership Marketing Program”, BoardRoom, January/February 2012). You must create a profile of your target prospect; determine what they want and how to package your club’s features and benefits to attract that prospect. Doing all of this will get you started in the right direction. Next time we’ll address training for the membership director. BR
rob deMore Rob DeMore is president of Troon Privé and can be reached at (480) 477-0558 and via email: rdemore@troon.com.
food & BeveRage committee
Should This Be Your Club’s Priority In 2018? year end is most often a time of reflection and, in the private club industry that means conducting an honest review of all departments. If a club is leveraging the value of a third-party service provider with a robust operating platform, this annual process is built into the agreement, especially if the facility is being managed across all departments. Although the focus can change from year to year, our 12 years of experience as a full management, third-party service provider with both developer and member-owned private clubs has shown that food and beverage operations usually demand the most attention at the start of nearly every new agreement. In these cases, food and beverage ranks highest in member importance but lowest in satisfaction on member surveys and, not surprisingly, it is usually the most disorganized department of the club. There once was a time when members felt that dining at their club was a delicious, prestigious, and social activity. But reductions in staffing and budgets, increased inefficiencies in operations, and latent capital improvements required by a changing member demographic/psychographic have translated into a steep decline in this pastime. There may not be a magic wand that will manifest funds out of thin air, but progress is still possible when leadership adopts a philosophy that influences the process, product, people and performance within food and beverage operations, with the goal of delivering a truly distinctive member experience. Resolving food and beverage challenges takes time, creativity, teamwork and discipline. Yet, once remedied, satisfaction in this area has been proven to increase member net promotor scores and, ultimately, enhance the club’s opportunity for sustainability. Philosophy: Established by the general manager and leadership team, a reinvigorated food and beverage philosophy drives everything. It should reflect the club’s unique culture and what it stands for, define specifically how it will wow the members, and include the non-negotiable elements that create a solid foundation from which to execute the program. Process: Once the vision is complete, a process lends detail to how the program will be executed. This can include conceptual elements, ambiance, and standards on service, food quality, timing, management, and sanitation, as well as uniforms, marketing, and a master calendar of events that is robust and engaging.
Remember that creating a unique identity for each outlet impacts social media, menu design, and online presence. Be sure to leverage technology with online reservations and apps that could facilitate reservations, orders, and customer feedback. Product: Making several small shifts in product will contribute in a big way. Eliminate frozen proteins. Be creative with menus and in food presentation. Consider offering a small complimentary edible when customers are first seated, such as bread or homemade chips served with a specialty butter or dipping sauce. Showcase a signature dish and/or beverage that ties to the concept of the outlet, or send customers off with a mint or similar small treat. Rotate the menus regularly, provide a live music series that showcases local talent, and build events around sporting events that are important to the members. People: Steps one through three mean nothing without the people to make it a reality. Be sure the GM and executive team are committed to delivering on the vision by providing the support and presence required to fully understand and drive operations – including spending time on the floor and leading productive and consistent meetings. Recruiting efforts should only target those who can align with the dream. The operations budget should include funds for a comprehensive training program, as well as assist with associates with certifications. The executive chef should appear on the floor regularly to connect with members and gain valuable feedback. At the end of the day, associates who feel supported and communicated with will go the extra mile for members and management. Performance: Know each outlet’s optimal levels of profit and loss to ensure success. When purchasing, leverage vendor contracts and negotiate wisely. Put portion controls in place to save on waste and enhance product consistency. And be sure to use objective data gathered from average spend per cover by member, unused food and beverage minimums, and member satisfaction surveys. If addressing the shortfalls in food and beverage operations should be placed at the top of your club’s 2018 “To Do” list, there is hope. Success in food and beverage operations needn’t be limited to the dollar amount in reserves and, if the resources of an experienced and strategic management partner are not available to assist with the process, simply doing the basics well will put your club on the road to improved member satisfaction scores by delivering the unique and distinctive experiences that are critical to sustainability. BR NOVEMBER/DECEMBER 2017 | BOARDROOM
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BoardRoom magazine Recognizes the Private Club Presidents of the Year By Heather Arias de Cordoba, Associate Editor, BoardRoom magazine BoardRoom magazine annually recognizes the world’s top private club presidents, captains and chairs as Private Club Presidents of the Year, for their outstanding work, their understanding of the industry, and role and responsibilities of the club’s board of directors. In this continuing series, BoardRoom introduces four of the top 22 presidents for 2016. Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world. These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working, effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work. Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan. A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members. Congratulations to these outstanding private club board presidents.
Three club president profiles on page 66
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gReg Meland, pResident | inteRlachen countRy cluB | edina, Mn
GreG Meland, preSidenT
Joel a. livinGood, GM/coo
Hard work and a vision by President Greg Meland has set Interlachen Country Club on a strong course for the future. “The success of our club today has much to do with Greg’s commitment as a leader. He was the right person at the right time. He positioned us for success by asking difficult questions, making difficult decisions, and engaging the membership in the process,” explained the club current president Lou DiLorenzo. During President Meland’s term, the club conducted a comprehensive membership survey and 20-year capital reserve study and revised its mission and vision. And this helped improve the member experience as Meland set the club’s long-term direction in a meaningful way by engaging the membership in the process. Interlachen’s board of governors in collaborative efforts with the club’s senior management, is responsible for leading the club strategically and setting policies that govern the club. Duties include developing and maintaining a strategic plan, exercising fiduciary scrutiny, measuring results against the business plan and planning for Interlachen’s future. BR
paul wickes, pResident | the foRd plantation | RichMond hill ga
paul WickeS, preSidenT
Marc ray, GM
The Ford Plantation, established in 1998 and turned over to the membership in 2008, is a relatively young club – a residential sporting community of friends and neighbors. In 2016, during his second term as president, Paul Wickes, working with GGA, volunteer leaders and the membership at large, completed a strategic planning process that was inclusive, transparent and embraced by the membership. “We’ve been able to develop a comprehensive strategic plan embracing the uniqueness of the membership and Ford’s amenities and that highlight our fantastic low country setting,” explained the club general manager Marc Ray. “As a bundled community, this strategic plan has created a shared vision for Ford that the community has embraced, with the tangible results. Residential sales doubled in its first year and member satisfaction at all-time highs.” Now, an LLC of Ford members, known as HMAF (Happy Members at Ford), the club is in the process of developing the final phase build-out of The Ford Plantation. And, earlier this year, the membership overwhelmingly voted to change from the developer model of refundability to one of initiation that will fund the club’s capital needs in perpetuity. 66
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“Paul absolutely set us on our current course of success and this Club will be forever grateful for his leadership,” expressed the club’s current president, Bill Donahue. The clarity provided by a shared mission and vision for Ford, along with a roadmap for the future, provide the headlights for both current and future members. Clear, communicated objectives, with action plans in all areas, has helped to enhance the member experience. This has not only attracted fantastic new members, but has also helped to attract and retain an incredibly gracious and caring staff, which is truly the hallmark of a great club. Wickes not only helped initiate the club’s strategic planning process, but he also has focused the club on collaborative governance, beginning with a board orientation that outlines the board’s and management’s responsibilities every year for new board members. “The board understand, and practices, good governance by focusing on the strategic and not the operational, expressed GM Ryan. “With a strong manager in place, there is no need or appetite to be involved in operations. “Paul is thoughtful man. He is open to listening to all sides of an issue and prefers to answer questions with questions so that he might gain a better understanding of someone else’s paradigm,” added GM Ryan “For me though, one of his best traits is that he does not shy away from taking on the difficult tasks or asking the difficult questions. Leadership takes intestinal fortitude. “Clubs by their nature are very social. Paul would not, does not, shy away from addressing issues that others may find uncomfortable and takes his role as a servant leader for the membership seriously. “He refused the attraction of ‘kicking the can down the road’ during his time as president, and we are better for it. I have a tremendous amount of respect for him and the work he has done on behalf of this club and this membership,” Ryan concluded. After 35 years of practicing law, Wickes retired in 2009 and he and his wife Gail relocated to The Ford Plantation in 2010. In New york, Paul was a member of Piping Rock Club and the Meadowbrook Club. Paul and Gail now divide their year between Ford and a home in Nairn, Scotland. BR
king puRnell, pResident | cheRokee countRy cluB | knoxville, tennessee
kinG purnell, preSidenT
laWrence Mcfadden, GM/coo
As president of Cherokee Country Club, King Purnell’s dedication, guidance, and expertise have made a lasting and positive impact that will benefit the club for years to come. The advancements under his leadership go beyond any metric and speak to the well deliberated strategic decisions that have been adopted and put in place while he served as president. “I know President Purnell would insist that any accomplishments achieved under his tenure be attributed to the outstanding board, committees, members and staff that he had the pleasure to work with, and while there is merit in that notion, his leadership helped guide and bring about numerous accomplishments,” espoused the club’s general manager Shawn Wilkes. The creation of a long-term and sustainable funding for capital improvements stands as one of President Purnell’s primary accomplishments. King Purnell, along with the strategic and long-term planning committee, recommended the board adopt a master plan that called for the reclassification of a long-term debt fee into a capital fee that would fund future projects in perpetuity. The funding model received 95 percent approval from the membership at the club’s annual meeting and will provide funding for projects currently being planned as well as improvements that will be determined by future boards and membership. President Purnell also recommended the club undertake a facilities asset study allowing for capital maintenance funding. The club also accomplished a stronger bottom line through increase usage by the membership, increased membership levels, both retention as well as new members, allowing staff to make recommended operational changes to better serve the club.
During President Purnell’s tenure, he consistently expressed the importance of improving the overall member experience and value received at Cherokee Country Club. His emphasis and focus on this area began early in his tenure through an evaluation of the membership’s desires and club’s performance. The survey provided an assessment of each department and senior staff, in addition to prioritizing future needs of the membership. The process helped to validate the board’s belief that member satisfaction levels were extremely high and that the club exceeds not only industry averages, but member expectations as well. In addition to providing an opportunity to recognize and build upon the club’s successes, the survey also provided valuable feedback through the use of performance index grids which helped to identify areas of improvement within each department. In an effort to ensure feedback from the survey was acted upon, Purnell, along with staff and the board, helped lead the effort to formulate an action plan that identified potential improvements and subsequently categorized and assigned responsibility to the appropriate party. A year after the survey and action plan were completed, staff and committee chairs presented progress reports on the initial plan, and the strides and gains achieved were evident to the members, board and staff alike. President Purnell wisely recognized that providing more opportunities for members to use their club through new and unique events and activities would create greater experiences and energy amongst the membership. He was extremely supportive and encouraging when it came to creating additional events, often times subsidized by the club, in golf, tennis, fitness, and food and beverage. Many of the club’s successes, including increasing the average spending per member by 6.2 percent and growing membership levels by seven percent, are because of President Purnell’s support and focus on member experience. His collaborative approach to his leadership helped him to be “a tremendously successful president,” added GM Wilkes. “He has a natural ability to facilitate and encourage discussion and genuinely listens and values the opinions of others. This was evident in board meetings, discussions with staff and also in his interactions and communications with the membership. In my opinion, one of his strongest traits as a leader is that he recognizes his own strengths and accurately assesses the strengths of others,” Wilkes stressed. Board meetings focus on strategic issues and President Purnell’s leadership in keeping board meeting ‘out of the weeds’, has allowed the board to focus on and move the club forward. A member of Cherokee Country Club for 25 years, King Purnell is the Tennessee Regional President for United Community Bank. President Purnell lives in Knoxville with his wife, Denise. They have two children and four grandchildren. BR
2017 TOP PRESIDENTS FROM WORLDWIDE CLUBS Private club board presidents play a huge role in the professional operations of their club as volunteers working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. BoardRoom magazine has been receiving nominations for the most outstanding private club presidents for 2017 and the announcement of the recipients will be announced in our January/February 2018 issue. These presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board, while providing a healthy respect for the club’s macromanagement.
They understand the importance of working, effectively and efficiently, with their volunteer boards and the dedication that’s required from everyone with whom they work. They practice what they preach – outstanding leadership to maintain best practices and an extraordinary member experience for their members clubs. Systems along do not insure a good board. Key elements include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with management and the membership, fiscal responsibility, development and establishment of the
club’s mission, vision and policy direction, especially through establishment of a strategic plan. Successful board presidents draw upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well, board presidents provide new board members and future presidents with information they need to perform effectively as board members. Stay tuned for the announcement of BoardRoom’s outstanding private club board presidents for 2017 in our January/February 2018 issue. BR
brian alberT
MaRketing committee
Brian Albert is co-founder of NEWSTATION.COM, the nation’s largest producer of online news videos for small businesses, including country clubs. Brian currently teaches Media Law and Regulation at the Lynn University School of Communications in Boca Raton. He will be presenting, “How to Effectively Communicate with Generation x and Millennial Members … And Stay Relevant” at CMAA’s World Conference in San Francisco in 2018.
Five Ways to Succeed with Millennials ask almost anyone over the age of 40 how to communicate with Millennials and they’ll say: “you can’t. They’re always staring at their phones.” And that’s exactly how you communicate with Millennials. On their phones. Like any business, clubs will struggle to grow their customer base if they don’t adapt to the new ways of engaging this young, tech-savvy audience. Following these five tips will help improve your relevancy with Millennials. 1) Video, video, video. Video should be your default method of communicating everywhere. Millennials crave video. You can use video in email, social media, text messages, and on your own website. And, of course, you can’t even be on YouTube without video. Keep your videos short. You can usually deliver an effective message in less than 90 seconds. Quantity is as important as quality with video. Anything you would ordinarily communicate in text should have a video version. 2) Embrace email. Tech pundits have been declaring the death of email for years, but it stubbornly persists. Social networks and apps come and go, but email lives on and it isn’t going anywhere. Everybody has an email address and they still check their email constantly.
likely reaching the wrong conclusion based on limited observations of pre-teens, teenagers, or young adults. The data shows otherwise. FaceBook is still the dominant social media platform amongst people between the ages of 18 and 34 (i.e., Millennials). FaceBook-owned Instagram is a distant second. That said, the younger the Millennial gets, the more likely they are to prefer other social networks over FaceBook. As time goes by, the gap between FaceBook and the other social networks amongst Millennials may shrink. But, for now, FaceBook should be an integral part of your millennial outreach plan. 4) Embrace the other social networks. All the buzz you’ve been hearing about Instagram, YouTube, and Snapchat is true. They are huge and can’t be ignored. Be careful about embracing just one of these platforms at the expense of the others. Millennials are extremely fragmented in the social media platforms they favor. You need to be everywhere to reach everyone. You also need to understand the difference between each of these social media apps 5) Don’t be afraid to text. A text messaging app comes pre-installed on every phone and is the only communications medium with 100 percent penetration. It’s the only way you can reach everybody.
Email is an amazing tool for communicating with Millennials, possibly even better than social media and apps, precisely because they don’t use it as much. The average Millennial follows hundreds of people on Instagram and scrolls through thousands of images daily. That same person might only receive a dozen or so emails. Email is an amazing tool for communicating with Millennials, possibly even better than social media and apps, precisely because they don’t use it as much. The average Millennial follows hundreds of people on Instagram and scrolls through thousands of images daily. That same person might only receive a dozen or so emails. For many in the younger generation, email has taken on an air of importance. If someone takes the time to send an email, “it must be important.” Use tools like MailChimp or ConstantContact to build, manage, measure, and optimize your email campaigns. Make sure your recipients opt-in to receive emails and pay attention to the CAN-SPAM laws. 3) Don’t ignore FaceBook. There’s a myth that “Millennials aren’t on Facebook.” If you share that belief, you’re 68
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Make sure your recipients opt-in to receive texts from your club. If they do, take advantage but don’t abuse that privilege. Use text messages regularly, but wisely. Millennials always have their phone in their hand and few people ignore text messages. Use texts to remind your targets of upcoming offers, specials, and events. You can even send pictures and video by text to get better engagement. By following these tips, you’ll sneak your way into the minds of phone-obsessed Millennials. No matter how much they stare at their phones, they won’t be able to ignore your club, because your content will be on the apps that they’re using all day, every day. BR
david W. lacey David Lacey is a former member of the board of trustees and chair, the tennis committee at Philadelphia Cricket Club. David can be reached via email: dlacey@hirshorn.com.
hR committee
Taking the Pulse of Your Employees
A Key Factor for Success at Your Club
Taking the pulse means asking your employees what is working and what is not at the private club where they work. Taking the pulse is far more prevalent in today’s work culture. Why? you ask. One reason is that Millennials are now a major percentage of your work force. At some clubs it is approaching 50 percent and sometimes more than that. Millennials are very interested in offering feedback. Whether it’s their DNA or just the way they look at their “work world”, they want to tell you what is working and what is not. Their outlook tends to be healthy and constructive. A second reason is club management is more willing to ask their employees about how the workplace, in all of its dimensions, is working. Private clubs increasingly are using a variety of methods to take the pulse. They use employee surveys, focus groups, and member surveys. All of them offer important clues about what works and what doesn’t. Club management is asking the question because employee feedback and the actions to address feedback results are now essential management behaviors in high performing clubs. High performers are ranked in the top decile or 10 percent of clubs nationwide. That status is worth achieving because high performing clubs have a reputation for listening to their employees, understanding what they need for retention, and then acting to deliver the actions that make a difference. The process of listening, understanding and then acting also results in high levels of member satisfaction. Therefore, employee satisfaction and member satisfaction are bonded for excellent performance. Taking the pulse, as I call it, has been made even easier to do with iPhone technology. In some organizations managers
and their employees use this technology to report immediately on performance successes or roadblocks – feedback about what is interfering with my effectiveness. The iPhone technology makes possible immediate and frequent feedback. If a success is reported, let the manager applaud loudly and immediately. If a roadblock, then offer a solution to eliminate or chip away at the roadblock. Either way, feedback is immediate, constructive and action-oriented. The iPhone technology places feedback and the actions resulting from it at the heartbeat of club effectiveness. Therefore, taking the pulse is easier to do than ever before; stresses the connection between employee retention and
high performance of the private club, and offers all employees a voice to talk about what is working and what is not. For all these reasons and many more, I am encouraging, even urging, club management to embrace taking the pulse. Even GE, known for its early adoption of many effective HR practices, has embraced iPhone technology for taking the pulse in its business units worldwide. GE is one of the first adopters of iPhone for this feedback purpose. Its feedback tool asks employees to continue effective practices and to consider making changes that lead to maximum effective performance. You and your club could be next in the adoption queue. Why not now? BR
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PHIl NewmaN
executive committee
Philip G. Newman, CPA, CIA, CGFM is a partner with RSM US LLP and is the firm’s national industry leader for private club services. In that role he works exclusively with hundreds of private clubs across the United States. Newman is also the recipient of BoardRoom magazine’s Award of Dedication for 2016. He may be reached at Philip.newman@rsmus.com
The State of The Club Industry
…A View from The Most Populous Club State Penning this article a week after Hurricane Irma ripped across Florida, it seems quite a surreal time to be reflecting on the state of our industry. However, in actuality the private club industry in Florida has arguably never been better placed to face challenges such as this storm.
In 1957 the following lines were attributed to Robert Dedman, ClubCorp founder, “A Club is a haven of refuge and accord in a world torn by strife and discord; is a place where kindred spirits gather to have fun and make friends.” And certainly, having visited some clubs that took Irma’s punches on the chin, just a few short days after the storm, it’s been incredible to see the staff so quickly geared up to serve members and help them and their communities move down the path of recovery.
bear this out as investment levels have continued at record levels with close to $1 billion spent or planned on capital improvements through 2017. Clubs in the state have long known that open dialogue with members is essential if a club wants to successfully move forward with a significant capital plan. How does open dialogue manifest itself? Usually when strategic planning is not treated as a discrete event but rather is embedded as a continuous process into the fabric of the club. And, done properly, it is not a painless task! For one club it involved 1,458 member surveys, focus groups covering 100 participants, 39 information sessions involving 900 members, followed by a further 28 information sessions attended by 600 members. When it comes to
The evolving nature of the physical facilities has also led to a questioning, and in some cases, change in dues-setting methodology. While dues at many Florida clubs are arrived at after working through some degree of zero based budgeting, conceptual questions center around the relationship between the dues rates of different membership classes. If we believe members should pay for the amenities that they have access to, then many members who are not full golf members now enjoy much improved, new and different amenities, that simply weren’t at the club when they joined it. Indeed, to be a refuge in a time of strife. Taking Dedman’s thoughts and modernizing them for today’s lifestyles, Florida clubs have steadily continued to evolve their amenity and membership offerings. Fitness facilities have grown to become wellness centers offering medical care and luxurious spas. Tennis facilities now encompass many types of racquet sports, bocce, corn-hole and croquet have taken on lives of their own, and food and beverage outlets have rapidly moved from formal dining to casual eateries with spectacular bars and outdoor venues replete with fire pits and breathtaking water features. Florida clubs have been steadfast in creating, following, and implementing many of the best practices that our industry has been stressing for many years. At the forefront of these practices is the appreciation of the need for continuous capital planning and improvement. The numbers 70
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capital planning members really want to be heard. Perhaps more than on any other aspect of Club life. And of course, members absolutely should be heard on such issues, with average club joining fees in Florida now in excess of $77,000 for 2016 – higher than pre-recession levels. The way in which clubs pay for these improvements is, again, a decision to be made by each club. However, the proportion of clubs willing to accept some form of third party debt is generally trending upward with 76 percent of clubs statewide carrying debt at the end of 2016. Looking at this on a per member basis, debt per full member equivalent (FME) increased to $8,010 by the end of 2016, up 11 percent from the previous year. Bear in mind though that the debt per member number for an individual club will usually correlate with the life-cycle of its physical assets.
If a club has a higher than average debt per FME figure, it could be because it has newer facilities. In the case of a more exclusive club with a smaller membership, the debt per member figure is generally higher as the cost of facilities renovations are spread over fewer members. The evolving nature of the physical facilities has also led to a questioning, and in some cases, change in dues-setting methodology. While dues at many Florida clubs are arrived at after working through some degree of zero based budgeting, conceptual questions center around the relationship between the dues rates of different membership classes. If we believe members should pay for the amenities that they have access to, then many members who are not full golf members now enjoy much improved, new and different amenities, that simply weren’t at the club when they joined it. Poll many clubs about how the dues rates of other membership classes relate to “full member” dues rates and you’ll typically hear that they move at the same percentage as the full dues rate. This philosophy can become quickly flawed when club amenities are added and enhanced. Consequently, some clubs have implemented a more intricate approach to dues setting, typically using a “right to use” methodology, which has led to significant swings in the relationship between full member dues rates and those of other membership classes. While we know that all politics is local and that market factors differ geographically, the concentration of clubs in Florida allow us to view it as a microcosm of our national club industry. From that perspective, with the ongoing and increasing investment in club amenities, systems and methodologies, the strength of the industry is Category 5! B R All statistics quoted are from the 2017-18 edition of Trends In Private Clubs, published by RSM US LLP. NOVEMBER/DECEMBER 2017 | BOARDROOM
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Peter HIll
wellness COMMITTEE
Peter Hill co-founded Billy Casper Golf (BCG) – one of America’s largest owner-operators of golf courses, country clubs and resorts – in 1989 with business partner Robert Morris and World Golf Hall of Fame member Billy Casper. Hill oversees all aspects of the firm’s holdings that include 151 golf properties in 27 states that touch one of every eight public golfers in the U.S.
Welcome to the Media Business If you’re a staff or board member of a private club, you’re in the media business and may not realize it. I didn’t realize it until 2011, when I was invited by Kyle Ragsdale, chief revenue officer with Vox Media/SB Nation, to co-teach a graduate-level marketing course at Georgetown University titled, Strategic Sports Marketing. As adjunct professors, the course we taught for two semesters required serious effort to prepare 2.5-hour classes weekly for 14 weeks. We were perfectly matched to instruct. Kyle taught new-age social and digital offerings and I presented more classical marketing discipline and tenets. We had to deliver relevant insights and knowledge to very capable and highly engaged students. There could be no idle time or ‘busy work’ in our classes. Planning was akin to board or executive committee meeting preparation… a powerful and rewarding combination for the class. Unexpectedly, it was even more so for Kyle and me, because of the ‘all things marketing’ focus we exerted and learning we absorbed in order to teach proficiently. Halfway through our second semester, Kyle remarked that a firm like Billy Casper Golf, operating more than 100 courses, had a media presence. “Don’t you need content to be a media enterprise?” I asked. “No,” he said. “What you need is an audience.” Here’s a starter list of obvious or classical media companies – Time Warner, Disney, New York Times, Bloomberg, Fox, CBS. Here’s a starter list for cutting-edge or non-traditional media companies – Amazon, Facebook, Redbull, Activision/Blizzard, Netflix, Uber. Each has a massive audience and content. It’s the content that differentiates. Classical firms favor creating their own content whereas newer-age companies specialize in promoting content created by others. One hundred percent of Facebook content, for example, is user-generated. What is ‘content’? Level one is passive content. It’s reading a book, watching TV or a movie at home. It’s a oneway street. You control the environment and action. Level two is passive-plus content. It’s texting, a telephone conversation, writing an email. Each are interactive. Someone is on the other end. But you haven’t gone anywhere or done anything. You can consume this content from your desk or living room in real-time or time-lapse. 72
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Level three is active content. It’s going to the movies, or attending a sports competition. These are ‘live’ things where you attend and observe. You leave the house. You’re moving. Finally, there’s immersive content. It’s things you do, where you’re engaged and part of the action. It’s going to dinner, joining a poker game, swimming, or enjoying a wine-tasting. And, of course, it’s golf. Everyone at your club is in the immersive content business. Golf is at the pinnacle of the content food chain and you’re at the helm. Ironically, golf (and golf clubs) have been in the content creation business for more than 100 years, but the golf industry only recently began to market its product as ‘content’ to the ‘audience’ that’s waiting for engagement and experiences to be offered. Private clubs have both a captive audience (members) and potential audience (guests and attendees of membersponsored events) to address their content. Golf has had a 100-year lead on creating great content; but it desperately needs to adapt to how consumers view, choose and engage with content. We’re long overdue. If you create or curate better content, your audience will grow. The way to grow is to create events in which golfers and members can experience and immerse themselves. Forget about golf for a minute. Think of your experiences – dinner with family, zoo trip with the kids, running a five k, attending yoga class, coaching the kid’s soccer team, going to the water park, attending a wedding, relishing a lake weekend with good friends. You choose to do this stuff because it’s immersive, fulfilling and fun. In the golf world, it’s playing in an outing, a membermember, a member-guest, nine and dine, a fundraising banquet, a wedding, summer golf camp, night golf, a scotch tasting, demo days, a superintendent’s revenge. And so on. No one wants to play less golf. Your members want to have an experience, a reason, or even a good excuse, to play golf. Your job is to provide that every day in as many ways possible. You are managing a media enterprise. Embrace the world of immersive content. BR
Corey SabaN Corey Saban is co-founder of Newstation.com. A former Emmy nominated and Associated Press winning TV journalist Saban’s company serves as a virtual newsroom for all industries looking to use short form video to engage their clientele. To learn more, text the name Corey to 31996 or email him at CSaban@Newstation.com.
maRketing COMMITTEE
Don’t Get Left Behind Stay Relevant
How many times a day do you find yourself looking at your phone? Checking email or texts? Whether you’re an android user or iPhone devotee, the smartphone has made our lives easier but it’s played a major role in the disruption of many industries. Just look at retail. Mobile shopping is on the rise, while mall mainstays like Macy’s, JC Penny, HH Gregg, and even hipster spots like Abercrombie & Fitch and American Apparel are closing their doors. The storefront has a new look and feel and it’s right in your pocket. The smartphone changed the music industry. No longer do we carry around CDs, use Kodak cameras or even a Garmin? With a click of a button you can hear your favorite Beatles song, take a picture or get directions to the nearest ATM.
In fact a great number of clubs are getting members to like their Facebook page and subscribe to their YouTube channel as a means to share their messaging. YouTube is 100 percent video allowing you to create a feeling, tell a story and show the audience what you want whether it’s highlighting a construction project, or promoting a social or dining event. Many clubs throughout the Seminole region in south Florida use monthly video updates to do just that. They share them on social sites, digital displays and YouTube to create greater engagement. Other clubs use them as a selling tool to highlight homes for sale. Video is disruptive when it’s short and to the point. First, style matters. You are being judged on quality, appearance and messaging so before you pull our your phone and hit record, think again. Also, be brief, once you go over
YouTube is the second highest trafficked search engine right behind Google. Every Fortune 500 has a YouTube channel. Many clubs do as well. In fact a great number of clubs are getting members to like their Facebook page and subscribe to their YouTube channel as a means to share their messaging. Communication has been transformed, no longer do you need to call when you’re late, a simple text does the trick. This is the new norm. Think about the alerts you get throughout the day from your favorite apps and news sites. Yes, traditional news will soon be a thing of the past. We don’t watch the 11 o’clock news like we did 20 years ago. We get information whenever we want it and most people find it on social media. In the last Presidential election 62 percent of voters learned more about the candidates on social sites like Facebook and Twitter as opposed to TV and print. Print newspapers are dying a very slow death. Ad revenue is down, there’s been a great deal of consolidation and The Newspaper Association of America has stopped releasing industry wide revenue data. A big part of their demise has been video. Next to nearly every online article is a video, YouTube is the second highest trafficked search engine right behind Google, which happens to own YouTube. Every Fortune 500 has a YouTube channel, (a channel is your branding with your video content). Many clubs do as well.
80 seconds you lose 72 percent of your audience. Focus on one or two key talking points so you can see the benefits. If your members have phones (they do) communicate with them in an effective manner, be in their pocket. Text and post video to social media, email it and see how they respond. Seniors, Boomers and Gen Xer’s are all digital immigrants, having grown up with the rotary phone and yellow book but the smartphone is a convenience they cannot live with out. We average 87 hours a month on our phones, that’s more time than we spend watching TV. Your goal is not to get left behind. Stay relevant, and up to date if not for today’s member than for tomorrows. Millennials are digitally native; they don’t know a world without this technology. Soon you will have to learn Snapchat, Instagram and whatever the next thing is. It comes down to adapt or perish, be aware of the disruption in communication, gauge members and remember they are mobile so provide them information they can easily share with just a click of a button. BR NOVEMBER/DECEMBER 2017 | BOARDROOM
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robert a. SereCI Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, Illinois. He can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org
on the fRontlines
Get Off Your Laptop and Get On Board! A few months ago, my wife and I returned from a weeklong cruise to the Caribbean. While we are seasoned travelers, this happened to be our very first cruise. On board the Celebrity Cruise Ship “Silhouette”, everything they had to offer exceeded our expectations. From the incredible food and attentive service to the amazing array of entertainment, we had one great, self-indulgent vacation. One activity I tried to master, but at which I miserably failed, was sunbathing. I tried for three days to lounge, aimlessly, with the sole purpose of altering my natural hue. After getting bored with this (non)activity, I decided to find a cool spot in the shade with a companion – my laptop. On the last day, while lounging with my wife in my shaded area, a gentleman who seemed to have perfected the art of sunbathing, made evident by his leathery, browned skin, sat next to me. He stood out among the myriad others on deck, who were covered from head to toe in protective clothing and lotion, as if they were part of the ship’s hazmat team.
I explained to him that I’m in the eventful world of club management, elaborated on how much I enjoy what I do, and how excited I am that Medinah Country Club is my workplace. He quickly retorted: “Not me. I have been with the same company for 17 years and can’t wait for retirement. I just need to put in a few more good years and I will be home free. At 15 years I get three weeks’ vacation and I use every bit of it. So, when I’m on vacation, this is my time, and my work is the furthest thing from my mind.” “Wow, that’s great!” I replied, “Good for you.” “You know what?” he continued, “I feel bad for you, having to work on your vacation. Stop working and enjoy your time off.” I didn’t know what to say, so I put my headphones back on and started to think about what he said, and especially, how he said it. Could Leatherman be right? Am I depriving myself of the “do-nothing” experience that so many seem to enjoy? So, I did what most men do, and turned to my wife to get a different perspective. I explained to her what Leatherman had told me and I asked if she felt that he had a point?
You have to remember that many people don’t always love their jobs as much as you do, and as a result, they are not passionate about their work. They are unhappy or indifferent, at best. So, the one thing they live for are those three weeks away from work. Vacations mean something different to you, because you view your work totally differently than those people. After a time, my bronzed neighbor turned to me and mouthed something in my direction. After removing the earbuds to my laptop, I kindly asked the gentleman if he could repeat his question. “Are you taking a vacation, or just changing your work environment?” he asked. With a sheepish grin, I replied, “Actually, I’m not really working. Having so much time to reflect and think is a luxury for me, so I am taking this opportunity to plan for some exciting projects I want to do at work.” He then asked me what I did that required planning during my vacation, and what was so important and demanding that I needed a get-away to think. 74
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Expecting her to fully agree with my fellow passenger, her response that went something like this, really surprised me. You have to remember that many people don’t always love their jobs as much as you do, and as a result, they are not passionate about their work. They are unhappy or indifferent, at best. So, the one thing they live for are those three weeks away from work. Vacations mean something different to you, because you view your work totally differently than those people. “How do you know this?” I asked. “Well, the fact that you are choosing to plan projects during your vacation is a strong sign that you are happy in your work. Clearly, you
don’t feel the need to get away from your work.” “You know what? You’re exactly right!” I returned to my laptop, put in my earbuds, and began to analyze what my wife had said. She is right. I am fortunate to love my job and care about the people that I see every day at the club. I don’t need three weeks to forget about my job or my responsibilities. Don’t get me wrong, I do take vacations and enjoy my time, I just use my time differently. As a passionate street photographer whenever I travel, I usually use my vacations to travel the globe and photograph individuals whose lives are vastly differently from mine. Last February, I traveled to India where I spent two days photographing individuals in a leper colony – yes, I said leper colony. To most, this is hardly a vacation, but for me, it gives me pause to think about what I have, and the experience encourages me not to take for granted the simple pleasures in life, like having a great career in a special workplace that I love. As my cruise came to its conclusion, I wanted to see Leatherman one more time, so that I could give him a more appropriate response as to why I do what I do. My message is this: “Don’t feel bad for me. I don’t consider my planning time away from home to be work at all. To be honest, I feel badly for you. You are so unhappy for the 49 weeks that you work, that you rely on three weeks to find your happiness. “I, on the other hand, am happy for most of the 49 weeks, and I use the other three to plan greater happiness.” So, how do you use your laptop? As a tool for work, or as a vessel to travel to your self-actualized destiny? B R
case STUDY | PAR BAR
Made for a Healthy and Fit Lifestyle today’s members are looking to their clubs to provide them with the latest and best new products, all while keeping wellness and fitness top of mind. That’s why Par BAR was created – to offer sports enthusiasts a superb product that tastes great and is made with healthy ingredients … all items essential for a healthy lifestyle “Every now and then at a trade show I stumble upon an unknown jewel,” explained Chuck Gill, USPTA president and director of sports at The Club at Ibis. “Such was the case with the PAR BAR, while at last year’s CMAA conference I tried the PAR BAR. It’s loaded with natural ingredients and is a great snack or meal substitute and offers our members a quick energy boost...and how unique. IT ACTUALLY tasted great!” And the members aren’t the only ones enjoying PAR BAR, “while it’s listed as a golf product, our tennis pros and fitness staff love them,” Gill continues. “We keep plenty of both the peanut butter and the chocolate raspberry in stock for staff in addition to the quick grab for the active members who need a quick pick up. Golfers, fitness enthusiasts and tennis players alike enjoy them.” PAR BAR was specifically designed for golfers, to provide sufficient energy for a whole round of golf, while assisting golfers with their greatest challenge – focus and concentration. The added bonus? PAR BAR is an excellent, great tasting energy bar for any sports enthusiast. Go online today to www.parbargolf.com and get a 30% discount on any order by using the promo code ENERGY. BR
mICHelle taNzer
law & legislation
Michelle Tanzer, Esq. serves on the National Club Association board of directors and is legal counsel to the Club Spa & Fitness Association. 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.
Private Club Status
Do the Rules of Public Accommodations Apply? Set in 1958 Hollywood, the romantic comedy / drama film, rules Don’t apply, is about an aspiring young actress (marla maybrey), her limousine driver (Frank Forbes), and her employer (Howard Hughes). Despite Hughes’ strict rules against it, marla and Frank become romantically involved and Frank tells marla, “the rules Don’t apply to you!” what does this movie have to do with private clubs? Very simply put, “the rules don’t apply” to truly private clubs.
So, what are “the rules” in question? The rules are federal and state anti-discrimination laws that prohibit discrimination on the basis of race, color, national origin, sex, handicap, familial status or religion or other protected class. Others relate to providing accessibility to facilities and services by persons with disabilities. In any event, the rules apply to public accommodations, but not to private clubs if such clubs meet certain legal criteria. The private clubs that meet the legal criteria are considered to be “truly private.” The law makes a distinction between clubs that are, in actuality, open to the public (a public accommodation), and those clubs that are operated exclusively for the benefit of their members (truly private). The rationale for this distinction is to preserve the right of privacy and freedom of association, which may extend beyond a member’s home to a member’s private club. However, this rationale is not supported when the general public has access to a club’s facilities. Thus, when determining whether a club is truly private, the courts will consider the following characteristics which tend to evidence privacy: 1. Genuine selectivity of the group in the admission of its members 2. Membership’s control over the operations of the establishment 3. History of the organization 4. Use of the facilities solely by members 5. Limited purpose of the club’s existence 6. No advertising for members 7. Non-profit purposes, and 8. Formalities observed by the club (e.g. bylaws, meetings, membership cards, etc.). 76
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Of these characteristics, the two most frequently relied upon are: (1) the club does not advertise for members, and (2) the club does not allow use of its facilities by nonmembers. When these characteristics suggest that a club is not truly private club, then the rules of law apply. Unfortunately, the determination of legal private status is distinct from the determination of tax status, and a 501(c)(7) is not necessarily a truly private club for legal purposes. When determining legal private status, there is no 15 percent threshold as with taxation. Any divergence from the foregoing characteristics, no matter how small, could result in a determination that the club is not truly private. In such event, a failure to abide by the rules could result in a lawsuit and a court ruling against the club. Earlier this year, a member of Woodland Golf Club sued the club to force it to permit his use of a special golf cart around the greens. The court ruled that the club “has all the basic characteristics of a private club, including genuine selectivity of membership and exclusion of non-members” from use of its facilities. Thus, the rules did not apply. In contrast, in the most well-known case involving private club status, four female members of Spokane Country Club challenged the club’s policies and distinctions based on gender. Two of the policies included: the men’s only grill and preferential blocks of tee times reserved for men. The club argued “the rules don’t apply” because it was a truly private club. The court considered the characteristics outlined earlier and ruled in favor of the female members, stating that the club was not truly private, and thus was not exempt from state anti-discrimination laws. The court cited non-member use of the club’s facilities and no real selection process for membership as the basis for its decision. As a direct result of this case, the Spokane club filed bankruptcy and all its facilities were sold to the Kalispel Indian Tribe. Regardless of whether your club is truly private or not, understanding when the rules apply is essential to avoid unnecessary disputes and costly litigation like those in Woodland and Spokane. BR
bIll bootHe Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment. During his 28 years in the club industry Bill has assisted more than 400 private clubs. Bill can be reached at bboothe@boothegroup.com.
technology peRspective
Paperless Member Billing
Why Wait?
Some things never seem to change with private clubs. but paper-based member billing is one thing that should have gone out the window long ago. Printing and mailing paper statements is a costly monthly ritual at almost every club, requiring lots of lowproductivity labor hours to complete a chore that could easily be automatic. Most clubs have tried to encourage members to opt for electronic (email) statements, but only have low participation rates to show for their efforts. The reason these efforts come up short is because they lack the three ingredients of any successful plan for change: 1) Tangible benefits to the target audience of the plan: People resist change – any change – even if it is good for them. It’s human nature. But if you can sweeten the pie with tangible benefits for the target audience, your chances of success go way up. The benefits of paperless billing are both financial and environmental. The financial benefits are evidenced by significant cost reductions – printing, mailing and associated labor. Reductions in paper usage that translate into fewer trees lost and a lower carbon impact on the atmosphere demonstrate the environmental benefits. This double whammy of financial and environmental benefits is the key to getting the attention of your club’s membership. And don’t make the mistake of dismissing these savings out of hand as being minor. Even for a small club, we’re talking many thousands of dollars, many trees and tons of carbon – year in and year out!
2) A specific plan of action: To change member behavior, you’ll need an action plan. A plan with specific tasks and measurable goals. In this case, your plan should begin with a series of communication pieces to the membership emphasizing the financial and environmental merits of paperless billing. To engage your membership, you will need to set measurable goals. For example, reference the 12-month plan plan below. 3) Long-term commitment to the plan: Ah, here’s the part that escapes most clubs. To be successful you’ll need to keep the plan fresh and visible to the membership. That will require someone on your staff to “own” this project and to see it through. Or you might consider forming an ad hoc member committee to create and manage the plan. Either way, someone must stay on it to get the intended results. And those results must be communicated regularly to the membership as a way of rewarding those who are participating and encouraging those yet to join in. Think fundraising contributions “thermometer” or something similar. The most important element for success is to get started – now. Don’t wait for a “convenient” time, since that time never seems to arrive. Assign this project to someone today and get the ball rolling. Every day you wait is wasting money and killing more trees! BR
You’l l n e e d to c a l c ul ate t h e f i n a n c i a l a n d e nv i ro n mental savings based upon your club’s individual membership population. But t h at c a n b e d o n e rat h e r q u i c k l y (t h e t re e s s aved and carbon reduction data is all over the internet). NOVEMBER/DECEMBER 2017 | BOARDROOM
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CalEb ChrIstophEr Caleb Christopher is the director of technical operations at Cino Security Solutions LLC and can be reached at (516) 932-0317, ext. 305 or via email: caleb@cinoltd.com
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Discovering and Defeating Email Fraud with DMARC Email is critical for business operations. If your emails don’t land reliably in peoples’ inboxes, business can grind to a halt. Originally designed in 1972 to enable communication, email was designed with a focus on communications…not security, and communication has been the focus ever since. That is why I can install a simple, free mail server software on any computer and start sending messages, claiming they’re from anyone I want – even you. Spoofing is the act of masquerading as another, and with email it’s incredibly easy if protections aren’t activated. In its various forms, spoofing fuels phishing and other fraud. Spoofing preys upon the legitimate reputation of an organization, and that organization gets the reputational
This company was getting the reputational credit for having sent these emails. A DMARC policy was published to reject any mail from that domain, and now 99.9991 percent of those messages being blocked. Recently the volume spiked to greater than 5.9 million in a month . 78
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“credit” for anything done in its name. Your club could be “sending” spam campaigns right now. What if I told you there was a three-step method to: • Protect your club’s digital reputation and decrease your likelihood of being marked as spam • Quantify the number of unauthorized emails purportedly from some.address@yourclub.com • Audit the content of unauthorized messages and, • Define an action policy for messages that don’t actually come from your club? What if I sent you an email about it? From yourself. Sometimes that’s what it takes for my message to land impactfully in the mental inbox of some club managers. Whenever I have the opportunity while conducting vulnerability assessments, I make sure to send myself a noteworthy email from an executive within the organization. This can be done without ever touching their equipment, or logging into their systems simply because I can – anyone can. That’s my point. Security as an afterthought is almost always clumsy and usually requires manual configuration. Here’s why I have my current job: security is rarely included in project/product design phases and IT guys rarely turn on the security options available. So, what’s the fix? My three-step plan? I stumbled upon it myself a little over a year ago while researching email authentication. There are three public DNS records you should publish for each domain you own: SPF (Sender Policy Framework), DKIM (Domain-Keys Identified Mail), and DMARC (Domain-based Message Authentication, Reporting, and Conformance). Here’s the short version: SPF specifies which IP addresses can send mail as @yourdomain.com; DKIM adds a unique digital signature to prove the message came from you (and is unmolested); and DMARC is twofold: it adds reporting and defines an action policy for unauthenticated messages. DMARC is where email security gets traction. Without it, email could be reasonably secure (tip: it usually isn’t), but previously there was no way to know whether your domain is being misused.
legal committee By RoB haRRis
Owner of Unprofitable Golf Course Cannot Avoid Restrictions On Use of Property thanks to attorney Cameron White for sharing news about an interesting decision recently issued by a Florida District Court of appeal.
The current owner of the Inverrary Golf Course purchased the course subject to a restrictive covenant providing that it “be used solely for recreational purposes”–which were defined to include “golf, tennis, horseback riding, swimming and all such other recreational activities as may be appropriate and in keeping with the overall development of Inverrary”, unless a substantial majority of the residents agreed to a change. The owner filed suit, seeking to be freed of this restriction on the ground that “the golf course has become unprofitable.” As the court explained, according to the owner, “there has been a substantial change in circumstances such that the covenant’s purpose can no longer be carried out and that the covenant is an unlawful restraint on alienation.” The owner has been unsuccessful in attempting to persuade the residents to come around to its way of thinking.
The reporting component is revolutionary, making it now possible to discover how many emails are being sent on your behalf and where from, even from systems you don’t own or control. DMARC has been mainstream-usable since early 2015, but for lack of awareness most businesses have not yet begun using it, and I find most IT professionals are unaware of or don’t yet understand DMARC. But, a word of caution: DMARC is powerful and can block all the fraudulent emails, but can also block the good ones. A careful plan is essential. I have deployed DMARC for more than 40 domains, one of which was sending more than two million fraudulent emails per month. The client indicated that domain should not be sending any email, so a quick forensic investigation into the content of the messages yielded evidence of phishing campaigns, links to hacked websites, myriad erectile dysfunction ads, and so on.
Even though a relatively small number of the residents are club members, residents “indicated they liked the golf course, even if they did not have a membership, because it provided a tranquil view, prevented overcrowding, and preserved the nature of the community.” The club owner argued that it shouldn’t be held hostage by what, in effect, are “free riders” enjoying the perks of nature without forking over membership dues. The owner argued “that the covenant anticipates a bilateral relationship where members of the community get memberships in the club and the club provides a recreational facility.” The appellate court, however, disagreed. As the court explained, “nothing in the covenant shows that its intent is for the golf course to be a profitable enterprise. [The owner’s] financial hardships do not support cancellation of the covenant because ‘the law does not permit cancellation of property restrictions for the purpose of accommodating the best or most profitable use of a particular piece of property affected by the restriction.’” BR
Another client’s members recently received a fraudulent message “from” a staff member requesting donations for another real member’s fake sick child on a GoFundMe site, complete with sad pictures and fake quotes from other members. I connected with their IT service provider to assist with damage control and remediation. So how long does it take; how much does it cost? The answer is, “it depends.” Simple environments can be done in less than a month with little capital outlay. Complex environments can take months and cost thousands. In my experience, most clubs are relatively simple environments. Secure your email. You’re likely in the majority who aren’t being actively impersonated, but if you were, wouldn’t you like to know? And wouldn’t you like to properly configure things so it can’t happen? BR
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DaVe DoHerty
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Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil basedgreens. He can be reached at (913) 706-6635 or via e-mail: daveistrc@hotmail.com Web page: www.istrc.com
Oxygen the Key to Maintaining a Putting Surface recently during a meeting with the green committee and the general manager of a golf course I was asked to explain the respiratory system of the grass plant. The answer in itself is very simple. The part of the grass plant above the surface of the soil takes in carbon dioxide and produces oxygen. The part of the plant below the surface of the soil [the roots] does the reverse and takes in oxygen and produces carbon dioxide. Previously I have explained that in a golf green we only have two things – solids and pores. The pores are the spaces between the solids, and there are only two types of pores. Small pores [capillary] hold water and the larger pores [non-capillary] hold oxygen. My personal way of mentally picturing, and understanding solids and pores is by using the phrase that we need to have enough room at the inn, referring to the larger [noncapillary] pores as rooms used for the housing of the roots.
In other words, a grass plant functions exactly like we humans do. It takes in oxygen and puts out carbon dioxide. If the room in which the roots are living or the room in which we humans are residing were sealed off and no new oxygen could enter [exchange of gasses] we would asphyxiate ourselves and die. Before a plant dies it will suffer stress and this stress results in a deficiency in the plant’s immune system resulting in disease. We spend thousands of dollars every year fighting disease that we would not have to fight if the plant had an adequate supply of oxygen available to the roots. It has always been assumed that if we have an adequate amount of air pores [rooms] for the roots to live, there would be enough oxygen available for the plants respiratory needs. In our work of monitoring golf greens over the last number of years we have often seen root zone systems with adequate amounts of air pores but the plants exhibited signs of stress.
Once a plant’s breathing starts to become labored and the plant starts to spend more energy than normal on breathing, its immune system starts to weaken and it has less energy available to fight off disease and to digest and use nutrients. Oxygen is our most important ingredient for maintaining a healthy putting service. Nothing else even comes close. Roots cannot live in water [capillary pores] and they cannot live in solids, which means that our roots can only live in air pores [non-capillary]. I like to paint a mental picture when I do seminars – the solids are the floor, walls and ceiling of the larger [non-capillary] pores [rooms] in which the roots will reside. Let’s assume that if we have 1,000 roots than we need 1,000 rooms to house these roots [guests]. And it is important to understand how the respiratory system of a grass plant works in relation to the root system breathing. Webster’s Dictionary describes “respiration’ as: The processes by which a living organism or cell takes in oxygen from the air or water, distributes and utilizes it in oxidation, and gives off products of oxidation, esp. carbon dioxide.
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Over time we came to understand that many times the larger pores [non-capillary] were adequate in number but were holding carbon dioxide and other bad guy gasses, and as a result there was not enough oxygen available to the plants root system for it to breath comfortably/ Once a plant’s breathing starts to become labored and the plant starts to spend more energy than normal on breathing, its immune system starts to weaken and it has less energy available to fight off disease and to digest and use nutrients. Oxygen is our most important ingredient for maintaining a healthy putting service. Nothing else even comes close. BR This article is an updated version of the article first published in BoardRoom magazine in 2007.
DeaN woCHaSkI Dean Wochaski CGCS is president/agronomist with Golf Maintenance Solutions. He can be contacted at his regional office. (757) 222-0025 or cell (757) 685-5556 or at dean@golfmsolutions.com Website: www.golfmsolutions.com
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Sustainability Comes in All Shapes and Sizes I will often read or hear about the importance of “sustainability” to be successful and survive in this industry. I read how important health of the environment is key to reaching sustainability goals, but this cannot be achieved without economic and social components to your overall approach. At the same time, I feel we get lost in the “bigger picture” definition of sustainability. During my travels to all levels of golf courses I find sustainability means different things to different clubs and there is no perfect model or script to reach sustainability. But what I have experienced is that every golf course is trying to achieve some degree of sustainability. It is up to each management team at the property to deliver what that true meaning of sustainability is for their property.
Let’s take a golf course with a modest operating budget and the superintendent is trying to produce the best product possible for the members. The importance of cultural practices is still extremely important, the fertilizer and fungicide usage is more balanced with the intent of managing healthy turf and quality putting surfaces. See, things do not really change, sustainability is just as important at the modest budget course as well as the course with more resources and if compromised the result may be financial challenges because of declining conditions at all types of clubs. A consistent quality conditioned golf course is your best sales and marketing tool for all levels of clubs. Look at the common thread that makes all golf courses able to achieve sustainability. It is the commitment to the
There should be no misunderstanding sustainability has other commitments to be successful in the environment and the financial health and success of the club. If you don’t start with your putting surfaces I’m not sure other key agronomic components can be addressed successfully. I see private clubs that are fortunate to have capital resources, but do not have the global experience to deliver sustainability of various capital projects for long term success. The lack of commitment to the maintenance many times will cause wasteful spending in capital resources based on the current conditions of the golf course. A golf course maintenance operation that lives on the edge each year because of cultural practices being compromised cannot deliver a consistent course in terms of conditioning. Solid ongoing agronomy programs and cultural practices are needed day in and day out to create exceptional playing surfaces. This commitment and discipline will provide sustainability, and in return allow for well thought out capital improvements to help drive the golfing experience. Let’s face it we have all heard this term many times, “Pay me now or pay me later.” The unfortunate part of paying later is going to cost your club significant capital dollars to areas of the course that could be avoided.
most important aspects of agronomy. The cultural practices that provide a balance of water and air in your greens’ profiles. Once you know what is below the surface of your greens you then can answer the owners or members’ questions with facts based on science. This allows you to put programs in place that best suit the individual needs of your club. This commitment to your cultural programs will provide sustainability to the most important asset of your golf maintenance operation. There should be no misunderstanding sustainability has other commitments to be successful in the environment and the financial health and success of the club. If you don’t start with your putting surfaces I’m not sure other key agronomic components can be addressed successfully. It always starts and ends with great Putting Surfaces and when they become sustainable and consistent each year, then all other areas become more sustainable as well, creating an excellent and complete golf experience for all. BR NOVEMBER/DECEMBER 2017 | BOARDROOM
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brUCe r. wIllIamS Bruce R. Williams, CGCS is international marketing manager for Grigg Bros./Brandt and a past president of GCSAA. He can be reached at: brucewms1@hotmail.com
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Course Upgrades Help Retain Members In the last few years we have seen a flurry of activity throughout the U.S. for both architects and golf course construction companies. It may not be like the boom years of the 1970s through the 90s but everyone seems to be quite busy this year. As with most businesses, golf course architects, not that long ago, had to downsize and right size their business to match the amount of work that was out there. Very few new golf courses have been built in recent years but renovation is keeping architects and contractors quite busy. eCoNomIC CHalleNgeS
A combination of factors led to the decline of golf earlier this century. Overbuilding was likely a contributing factor along with a recession a decade ago. The amount of disposable income declined and people had to make choices as to how they would spend their extra money. Lifestyle choices also contributed to this challenging scenario. Golf clubs have done what they can to survive, and those facilities that made appropriate adjustments survived. After the period of decline the competition of filling membership rosters created opportunities for clubs to make their golf courses attractive to prospective members. It should be noted that many maintenance budgets and budgets for equipment and capital projects were frozen during that same period.
and multiple tees have been great additions to many golf courses. It is a small investment that can result in more of our youth, ladies and seniors playing the game. At the same time a golf course can be lengthened to match the technological changes in golf balls and clubs allowing players to hit shots much longer than when golf courses were originally designed. lIFe exPeCtaNCy
Most players don’t realize that some items on the golf course have a true-life expectancy, and golf greens and irrigation systems come to mind. Studies indicate that the average life expectancy of both is 20 years. Smart operators will budget accordingly for when the day comes that those items need replacement. Many clubs have recently decided to upgrade or replace their irrigation system in recent years. With the cost of water rising and older systems becoming less efficient it makes a lot of sense to develop a plan to keep your system effective and efficient. Golf greens will vary in life expectancy. Remember that the grasses planted on greens 25 years ago may not meet the current standards required by golfers at private clubs today. A whole new generation of grasses for putting greens has evolved and there are lots of options out there. The demands for faster putting surfaces are easier to meet with these new grasses. The largest component added to greens is water, but all water is not created equal. Some
Golf greens will vary in life expectancy. Remember that the grasses planted on greens 25 years ago may not meet the current standards required by golfers at private clubs today. A whole new generation of grasses for putting greens has evolved and there are lots of options out there. The demands for faster putting surfaces are easier to meet with these new grasses. The largest component added to greens is water, but all water is not created equal. reNoVatIoN aND reStoratIoN
While there is a difference in the terms renovation and restoration let’s consider both being an upgrade of the playing surfaces of the golf course. It would surely include all physical changes of the property and infrastructure. If we are to grow the game then it is important that we make the game user friendly. The addition of forward tees 82
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sources of water contain high levels of sodium and bicarbonates and this can shorten the longevity of greens. The best suggestion is to use qualified agronomists along with soil and water testing to track the health of your greens. bUNkerS
Bunkers are another quick way to change the look of your golf course. If your fairway bunkers are no longer in
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Blas Huezo Named Most Valuable Technician Huezo, equipment manager at barona Creek golf Club in lakeside, Calif., has been selected as the recipient of the 2017 most Valuable technician award, presented by the golf Course Superintendents association of america (gCSaa) and its flagship publication, golf Course management (gCm) magazine, in partnership with Foley United. Now in its eighth year, the award recognizes excellence among golf course equipment managers and the vital role they play in the golf course management industry. Equipment managers are nominated by their golf course superintendent, and a panel of industry judges narrows those nominations down to three finalists, who are then voted on by GCSAA members through the magazine’s website. “It’s no secret how much golf course superintendents value equipment managers and the vital role they play in golf course maintenance operations,” said Rhett Evans, GCSAA CEO. “That’s why GCSAA members approved the creation of a membership classification for equipment managers in 2015 — a classification that now boasts more than 800 members — and why we support programs such as the Most Valuable Technician Award. “Blas Huezo is a well-respected figure in the golf industry in southern California, and a deserving recipient of this year’s award. We congratulate him, and thank Barona Creek superintendent Sandy Clark, CGCS, for nominating Blas for this honor,” Evans added. The son of a mechanic who spent time working in the golf industry, Huezo has a deep history in the business, working on the distributor side of the golf industry for
play then it would make sense to relocate them accordingly. Hiring a qualified golf course architect is important along with using an experienced golf course contractor. It provides a fresh look to the golf course without closing. Over time, bunkers tend to drain poorly. Sand becomes contaminated with clay and gravel. Adding sand alone does not always make a bunker better. Bunkers with six inches of sand are the normal specification. In the Los Angeles metropolitan area there are as many as a dozen projects underway or recently completed. Architect Todd Eckenrode has completed work at Brentwood Country Club and Virginia Country Club. Both courses were restored to the original conceptual design while
both Toro and Jacobsen in addition to his day-to-day experience in the maintenance facility. The three-year GCSAA member has a well-earned reputation for giving back to the industry, mentoring other equipment managers in Southern California and volunteering his services at numerous professional golf events, including the 2008 U.S. Open at Torrey Pines and the 2010 U.S. Amateur at Chambers Bay. “I’m certainly humbled by this recognition,” Huezo said. “There are so many worthy candidates from all over the United States. I’m honored just to be considered in the same company as those other equipment managers.” Clark, a 27-year GCSAA member, said, “You’re not going to find anyone better than Blas. You might find some who are equally good, but you’re not going to find anyone better. I’m just so happy for him, and happy that others saw the same things in him that we all do around here.” Jim Letourneau, the president of Foley United, which has been the presenting partner of the Most Valuable Technician Award since its inception, said, “Foley United continues to be proud of its sponsorship of this award and are excited to recognize exceptional equipment managers such as Blas. “He is an outstanding example of the kind of talented, dedicated people who work in these roles in golf courses all across the country, and we’re pleased that we can help honor him for his efforts and accomplishments.” Also selected as finalists for this year’s Most Valuable Technician Award were Kurt Lading from Indian Hills Country Club in Prairie Village, Kan., and Trent Manning from Ansley Golf Club in Atlanta. BR adding distance to accommodate the golfers of this current era. Memberships have responded affirmatively with new members and waiting lists. LaBar Golf Construction has been very busy these last few years. While based on the east coast he now has been doing projects throughout California and New York down to Alabama. “The level of activity out there has allowed us to expand our operations significantly,” said Rich LaBar. While golf is a competitive sport, the business of club management is also competitive. Clubs compete for members, guests and revenue. By upgrading your golf course, it is easier to attain and retain the highest level of member for your club. BR NOVEMBER/DECEMBER 2017 | BOARDROOM
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Industry Insight from the CMAA’s 2017 Finance And Operations Report BY AMILCAR DAVY the future is bright for Club managers association of america members and the latest finance and operations report indicates there are opportunities for growth. The finance and operations benchmarking report provides insight to the private club industry using data from members of the Club Managers Association of America (CMAA). With more than 400 CMAA clubs participating in the survey, this data is very valuable and key to identifying business performance improvement opportunities. Of clubs participating in the survey, 79 percent are either golf or country clubs. Ninety-six percent of the clubs are private and 76 percent are membership organizations that are 501 (c) (7) tax-exempt. While most CMAA clubs have food and beverage facilities available (97 percent), only half have fitness/exercise facilities available to members. This is a growing trend that CMAA has been proactive in addressing by assuming management of the Club Spa and Fitness Association (CSFA). This structure will allow CMAA to “better serve our members in new ways and in concert with how clubs are expanding their spa, fitness and wellness offerings,” according to CMAA’s CEO Jeff Morgan. The full family membership (81 percent) is the most popular general membership category offered among CMAA clubs followed closely by the non-resident membership (73 percent). Annual dues and member counts increased among clubs as the operating revenue increased. The median annual dues include $6,662 for a full family membership; golf and 84
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country clubs at $7,134 and city/athletic clubs at $3,606. The typical growth in membership annual dues is almost three percent across most membership classes/types. Golf and country clubs have an average of 664 members and city/athletic clubs reported an average of 1,959. oPeratINg reVeNUe CMAA clubs participating in the survey reported median operating revenue of $6.2 million. The club income statement for operating revenue consists of 49 percent deriving from membership dues, 31 percent from food/beverage/social events, 11 percent from golf operations/golf shop and nine percent stemming from all other operating revenue. Regardless of the club revenue size, salaries and wages as an expense remained consistent while total number of full-time equivalent employees (FTEs) increased as club operating revenue increased. Golf and country clubs are focused on general golf courses, general clubhouses, informal dining areas and fitness centers as the top capital spending priorities over the next three years. City/athletic clubs count their top capital spending priorities as general clubhouses, fitness centers and formal dining areas. Overall, this is an exciting time for the club industry! BR Amilcar Davy is the manager of research for CMAA, which conducts industry surveys to benefit CMAA members and the club industry. The surveys are compiled into various reports providing detailed information based on survey data. For the latest on CMAA’s research, visit www.cmaa.org/Research/
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Perhaps Elliot Schreiber, PhD, framed this whole paradigm shift best when he pointed out that “Relevance is more important than differentiation: Business strategists, marketers and brand managers have been fixated on differentiation. Customers, however, are drawn to relevance – the things that “connect with them emotionally.” On The Frontlines | 56
According to the managers responding, the keys to good dues’ projection are good planning and a realitybased budget. Creating a budget that takes realistic expenses and revenues into account will yield an appropriate dues line.
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provements that, let’s face it, are part of the membership sales process. There remains board concern about the future in Amarillo, as the next list of capital projects is now being discussed and there is anxiety about how the new members will respond. This is just part of the terrain clubs face today on the membership front. Attitudes toward membership (and assessment-paying) have changed. Full stop. We’ve all seen it. And here’s another stark reality: Many markets were overbuilt in the course-development boom (1990-2005).
As I explain to my students, “Differentiation is all the people you date; relevance is the one you marry because you cannot live without them. It is emotional and irrational, but the bond is strong.” Your Bottom Line will thank you! BR
If it is felt that a dues increase is not palatable to the membership, then adjustments need to be made to the budget before approval. Nobody likes surprises, and asking members for an unplanned operational assessment to cover a shortfall is rarely seen as positive for either the directors or the manager. As the saying goes, “Failing to plan is planning to fail.” BR Part of the membership crisis we see at member-owned clubs is attributable to supply exceeding demand. But waiting lists need not go the way of the dodo. Clubs can still get this done, through their own savvy and flexibility, skilled consultants, or an experienced owner/operator with deep pockets and a track record. BR
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easily transferred when staff turnover occurs. It organizes disorganized people and processes, and it gives club managers a deep look into the sales process so they can coach for success. CRM technology allows all this, and it can be implemented perfectly well for between $500 and $1,000 a year. There is a question of scale here. We’ve invested massively in a CRM that has all the bells and whistles. It aligns with our point of sale systems, tee sheets, email, website and vendor/distribution channels — and it does so on a mobile-first platform, so all our sales managers can put it to work, on the road, with their phones. Our client clubs reap the benefits of this investment, but individual clubs don’t necessarily need these bells and whistles. Even a CRM that costs $25/month, that requires manual transcription of data, is something every club should be doing. Not doing so is almost a dereliction of duty. BR NOVEMBER/DECEMBER 2017 | BOARDROOM
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gregg PatterSoN
tRiBal magic
Gregg Patterson served the Beach Club of Santa Monica as its general manager for 33 years before retiring in 2016. He’s also a recipient of Boardroom magazine’s Award of Dedication for his timeless, energetic and dedicated service to the private club industry. Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com
Delivering Big Touch looking for touch
Club lovers love CLUB. Club lovers love the relationships they provide, the sense of community they generate and the warm embrace they deliver. And because club lovers love CLUB, whenever they visit and begin nosing around, club lovers start looking for the touch. Member to member. Staff to staff. Staff to member. Member to staff. In the parking lot. At the front desk. In the locker room, grill, dining room, gym, first tee and bathrooms. Club lovers judge “club” by the amount of touch that’s delivered. The touch factor matters. Club lovers have discovered that good clubs everywhere have a high touch factor. They acknowledge it, train to it, measure it, document it. And club lovers have learned in their travels that the very best clubs, the ones that are most memorable, the ones that attract and retain members, the ones that get visiting members to linger longer, deliver something truly special– the big touch – with frequency.
Touch matters. And lots of big touch matters most of all. Best you know your touch factor. Here’s why. HUNgry For toUCH
Touch is a biggie. Touch done right is memorable. Bankable. Everyone is hungry for touch, done right and often. Every staff person who arrives at 7 a.m. Every member who drives into the lot. Every child who plays Shag Golf. Every guest who visits. All of ‘em – everyone who steps into the clubhouse, parking lot, pool or golf course is hungry for the touch. And everyone who visits or works at your club has an example of the good touch they’re using to benchmark the touch your club delivers. Members, staff and guests are judging your club’s touch factor, and giving the club a score. The foundation of financial success, of financial net worth, is social net worth. And the touch factor is a criti-
Ms. Club Lover rolls the ball around in her hand, put it in her pocket, plays nine and then, at the halfway station, while quaffing a beer and digesting a brat, she takes out the ball, rolls it around in her hand, look at the happy face and remembers the pro, the eye touch, the verbal touch, the “touch” touch, the ear touch, and the brain touch and this ball, the intermediary touch. And think, this pro and this club did touch right. She just experienced a six touch “big touch” moment. Successful clubs have a solid financial net worth. They do business right. But on closer inspection club lovers discovered decades ago that any club with a high financial net worth has a high social net worth, that every successful club with a high social net worth believes deeply and passionately in touch and goes the extra mile to deliver the ultimate touch, the big touch, often and well. Successful clubs do people right.
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cal metric any club’s social net worth. Knowing touch, knowing how to measure it and knowing how to grow it is fundamental to doing “club” right. Here are the Touches you’d best deliver. DelIVerINg tHe SIx toUCH exPerIeNCe
Everyone wants to be touched. To bond with others, to create relationships, to affirm community via the touch. Everyone hungers for a six touch experience.
The first and most basic touch is the eye touch. People want to see and be seen. Eyes “touching” is the foundation of social contact. The second foundational touch is the verbal touch. Speaking to people while looking them in the eye is a powerful connector, a “must do” touch experience. The third touch is the “touch” touch. The handshake. The high five. The touch on the shoulder. The hug. On the road to big touch, the physical touch is a must. The fourth touch is the ear touch. The big listen. People are touched when they believe what they’ve said is heard, valued and absorbed. The fifth touch is the intermediary touch. Something given that says, “remember me.” The “great to have met you” hand-written note. The gift on a birthday. The photo memory. And the sixth and ultimate touch is the brain touch. When ideas are shared. Thoughts are delivered. Substantive conversation is experienced. And the ultimate encounter – a big touch moment, is one that delivers all six touches at the moment of connecting. And in clubs, people will join, stay, use, linger and pay the big bucks when big touch moments get delivered—-often. Good clubs deliver touch…lots. Great club deliver big touch…lots. And great clubs with a high touch factor have a high social net worth and clubs that have a high social net worth will, almost invariably, have a high financial net worth. Touch matters. To the bottom line. exPerIeNCINg bIg toUCH
Every “people encounter” is a touch opportunity. A moment when the touch gets measured. When members and staff determine if they’ll “stay” or “be gone.” By way of example………Ms. Club Lover is a guest at the club. Looking for the right club for her and the family. She’s visiting clubs and measuring the touch to determine where she’ll invest her time, money and emotions. She figures the pro shop and the pro are symbols of the club, representatives of the club’s best, a good place to experience and measure the touch. So Ms. Club Lover scoots down to the pro shop, looks through the window and notices the pro at the counter, staring at the computer, checking tee times and lessons. Ms. Club Lover walks in the front door. The pro looks up and gives her the welcoming look. The eye touch. Touch one. Check.
As Ms. Club Lover walks toward the desk the pro waves, says hello and asks what he can do to make this 18 a great 18 for Ms. Club Lover and Joe Club, her member host. She smiles. The verbal touch. Touch two. Check. The pro squirts around the corner of the counter. Gives Ms. Club Lover a big two handed double shake. The touch touch. Touch three. Check. Ms. Club Lover stands at the counter and begin explaining that she’s a lousy golfer, loves being with friends, loves to play and talk, that she plays to get exercise, to enjoy the outdoors, to escape from the madness and to see nature at its finest. The pro is listening attentively, leaning forward, nodding his head, looking Ms. Club Lover straight in the eye, scribbling a note or two on scrap paper. The ear touch. Touch four. Check. Ms. Club Lover finishes talking and the pro jumps in. Talks about the glory of friends, the glory of the game, the glory of the course, the glory of being a social player in a club like this. The pro asks another question. Listens attentively. Enlarges on Ms. Club Lover’s comments. And the exchange continues until her friend and member host Joe Club arrives. The brain touch. Touch five. Check. And as Ms. Club Lover walks out the door toward the putting green, the pro gives her a single golf ball with a happy face and a “Get the Buzz On!” painted on its surface. Ms. Club Lover rolls the ball around in her hand, put it in her pocket, plays nine and then, at the halfway station, while quaffing a beer and digesting a brat, she takes out the ball, rolls it around in her hand, look at the happy face and remembers the pro, the eye touch, the verbal touch, the “touch” touch, the ear touch, and the brain touch and this ball, the intermediary touch. And think, this pro and this club did touch right. She just experienced a six touch “big touch” moment. And Ms. Club Lover decides, then and there, to join. boaStINg yoUr toUCHy FaCtor
Everyone’s hungry for the six touches – eye, ear, verbal, physical, intermediary and brain. Everyone’s looking for the big touch when all six are delivered. And clubs that specialize in delivering touch make the big bucks happen. Acknowledge the power of touch. Hire staff who have it. Teach staff to deliver it. Admit members who want it. Reap the rewards. And enjoy the journey…. BR
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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.
INNOVATIVE IDEAS
A Spring Fling Food Truck Event Delights Staff Last spring, the staff at the Country Club of Virginia (CCV) enjoyed a Spring Fling at the club’s Tuckahoe Creek Farmhouse. What better way to celebrate the spring season and your staff’s accomplishments than with a fun, trendy event at a beautiful farmhouse, away from the clubhouse where staffers can kick up their heels and enjoy some delicious food truck fare? The party, held in a locale that most employees hadn’t seen before, allowed plenty of space for the food trucks, picnic tables and games. The food truck party was on a Monday afternoon, when two of the club’s three golf courses are closed. The timing of the event, outside of
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work hours for most of the club’s departments, allowed as many employees as possible the opportunity to enjoy small plates from a collection of local food trucks, outdoor games, a DJ, and fun prize giveaways. The club’s human resources director, Kelli Reid, who rounded up the food purveyors with a quick call to the local Food Truck Association, organized the event. She coordinated the tasting format, allowing the 250-300 attendees to make a delicious meal out of a variety of dinner and dessert options. Each of the seven food trucks offered limited menus and charged the club for a set number of dishes, regardless of consumption. The club was able to control, or at least predict, the event costs ahead of time. The staff loved the format and the location, which is far from the clubhouse. And the party didn’t interrupt regular business operations. In fact, the members were completely unaware of the event. The CCV team members were informed of the event through group emails, flyers, the employee newsletter, and at staff meetings. The club’s director of marketing and communications, Ashley Payne, said it was a fairly easy event to put together. “The staff loved the event. What better way to show our gratitude to our employees than to have someone else do all of the work? We not only got trendy for the day, but we supported local small businesses in our fun.” BR
INNOVATIVE IDEAS
Flavors on the Fairway Kicks Off the Summer Season A seasonal club located in Pennsylvania, Hershey Country Club has been kicking off members enjoy fire pits and s’mores its summer season each year with a popular, progressive dinner event that takes for dessert, we hold the event just before and just after the pool season, so members to several food stations located on the golf course. we can use the space without interOriginally conceived of by the club’s house committee, Flavors on the Fairway rupting the normal flow of business.” has become a highly sought-after event that sells out quickly, time after time. Despite its popularity, the club limThe club’s general manager Ned Graff noted, “Flavors on the Fairway is essenits the ticket sales to about 150, tially a progressive dinner through the golf course. It is a fun event that our memgiven the kitchen staff’s capacity, the bership loves to do. Since we are a seasonal club, we try to do as many outdoor logistics of serving food on the activities as we can during the summer months.” course, and the challenging setup Each event usually has a food theme and consists of small plates served to standing that is involved. The events are adguests, who can mix and mingle while tasting the culinary staff’s unique creations. vertised through the club’s annual Past event and food themes have included an All-American burger theme and a Food event calendar, through email marTruck Fusion theme. Dining options often feature local cheese purveyors and lots of keting, Facebook, and on the club’s local produce. Either a cocktail tasting or wine tasting station is included as well. communication boards. Reservations The event, held twice a year – usually on Memorial Day weekend and on the are required and the club concierge weekend following Labor Day – neatly brackets the opening and closing of the holds fast to a 30-day reservation swimming pool. The club’s goal? To create a food and beverage event that would policy, meaning guests can’t sign up also appeal to family members and non-golfers. for the event any earlier than 30 days The event kicks off with a cocktail reception and full bar at the tee box at hole out. The club typically charges $70 to number one, complete with entertainment. The club has often chosen live bands $80 for event tickets, depending on to make the 30-45-minute reception more lively. the food and wines on offer. Members then progress to two or three different tasting stations located on the “It’s very unique and the member refairway. For many members who don’t golf, this is often a rare opportunity to sponse is great. It’s a favorite event and enjoy the course and a ride in a golf cart! Since the sun sets quite late during the it’s something that they really look forsummer months, the reception generally begins at about 5:30 p.m. with a goal of ward to. We are never challenged to getting all the members off of the course before sundown. get reservations and it sells out quickly Jon Gehman, the club’s assistant general manger, explained the logistics behind the every year,” concluded Gehman. BR timing of the event. “Since it usually concludes at the club’s swimming pool, where
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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.
INNOVATIVE IDEAS
Partnership with Local Non-Profit Helps Restore Coral Reefs expanded to help with coral restoration projects in other places. The Coral Restoration Foundation has evolved from a grassroots effort into a sophisticated organization that has received government funding to continue its valuable efforts. Coral nurseries from the Keys are now used to seed other coral reefs that are in decline in the Caribbean and beyond. The nearby Ocean Reef Club, also in Key Largo, launched an unusual inTwo of the region’s most important corals, ternship program to provide the Coral Restoration Foundation with much staghorn and elkhorn, were in drastic decline needed labor support in the early days of their coral nursery project. The because of the effects of climate change, polclub paid their scuba diving certified employees to assist the non-profit with lution and overfishing. labor assistance, which were spent cleaning, maintaining and planting coral. On a hunch, Nedimyer took practical steps. He In return, the scuba loving employees from the club learned valuable began floating structures, made out of PVC skills in the water and had the opportunity to gain non-profit experience pipe, in the ocean and tying small, two-inch while positively impacting their local environment. Even associates – not pieces of coral to the man-made trees. He would scuba dive certified – were able to visit the coral sites and experience dive down to clean and keep the corals and their some of the positive impact the partnership was having on the local reefs. supporting framework free of algae and to help Richard Weinstein, the Ocean Reef Club’s senior vice president of monitor the health and growth of the corals. membership and marketing, noted, “We are invested in the Coral To his delight, the two important, endanRestoration Foundation’s mission to revive coral reefs. Their Carysfort gered coral species began to grow and over 2020 project – an effort to plant 20,000 coral trees in the nearby reef of the course of a year, they grew significantly. the same name – is quite large in scope. Through trial and error, he launched a pro“In order to support their increasing needs for labor the club has comgram to revive coral reefs by replanting his mitted to donating a million dollars over five years to help meet the addifarmed coral to dead areas of the local reef. tional programming costs. The foundation now is able to hire professional Nedimyer’s dedicated efforts were rewarded divers to assist in cleaning and planting local coral nurseries, which are when in 2012, he was nominated as a one of now some of the largest of their kind in the world,” Weinstein added. CNN’s Heroes. His foundation in the Keys has Now in its second year, the club’s planned giving and partnership with the Carysfort 2020 project has been a valuable experience for both sides. “Our employees really got so much out of the internships experience. We are so proud of our continued involvement in such a worthy cause that directly impacts the beauty of this exceptional destination,” Weinstein said. Club members are also able to contribute by attending the non-profit organization’s annual gala and auction, which are held at the Ocean Reef Club, or by adopting corals in the nursery. For a donation of $350 to the foundation, members and the general public can adopt a single coral and fund its development and planting, or a coral tree can be supported with a $1,000 donation. BR
P h otos co u r tesy of Zac h Ran som/Coral Re storati on Foun d ati on
The Coral Restoration Foundation in Key Largo, Florida began with the efforts of Ken Nedimyer, a local scuba diver who witnessed changes in the sea environment and watched as his beloved coral reefs degraded over several decades.
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INNOVATIVE IDEAS
Tablet Computer Software Provides Instant Feedback For the past two and a half years, the Polo Club of Boca Raton has been rewarding its employees through an integrated incentive program designed to motivate service excellence in their dining outlets. Complementing their club’s comment cards, members are given the opportunity to complete a service review at the end of their meal on a tablet computer. Food and beverage managers are immediately alerted via text message if guests have had a less than positive experience, giving management the opportunity to check in with dissatisfied dinners guests. The instant feedback loop has allowed management to remedy member experience issues, but also to monitor their employees’ performance using data, instead of emotions or impressions. The Humm reports are tallied monthly and each staff member can see for themselves the ratings they’ve accumulated. Members appreciate having the opportunity to give feedback and the devices have helped the club members to get to know the club’s employees by name, building relationships between members and staff. The best team members are rewarded based upon the results of these monthly data reports. They must have received a minimum number of comment cards and tablet reports, and must demonstrate at least one instance of exceeding expectations of their guests in order to qualify for monthly cash incentive prizes. Marius Ilie, the club’s assistant general manager, notes that the motivating service excellence program has helped to build teamwork and it has also engendered a sense of ownership amongst his staff members. Employees in each of several dining room job titles are rewarded with a gift card, a certificate of appreciation, and a committed to service excellence pin. Indeed, several of the food and beverage staff wear multiple pins on their uniforms, showing their continued commitment to providing excellent service.
The members love this program because they not only feel heard, but they enjoy seeing their favorite club employees being rewarded and appreciated for a job well done. Management is able to identify and show appreciation to the best employees, and also is able to improve employee performance and address common service related issues. “We believe that investing in employees shows we care, creates great morale, motivation, commitment, ownership and maintains the service excellence culture,” intoned Ilie. BR
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MEGHAN THIBAULT Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.
INNOVATIVE IDEAS
St. Andrews Comprehensive Events Calendar In 2015, the team at St. Andrews Country Club of Boca Raton convened early in the year to map out its seasonal event calendar. With members, their children, and grandchildren converging on the club for the holidays beginning in November each year, the staff began developing a high-season social calendar in April, organizing their efforts into a comprehensive events booklet for their membership. Member families can find all-inclusive information on the programs offered at St. Andrews in the club’s 20-page Family Guide booklet, a collaboration between the club’s department heads from golf, tennis, fitness, spa, and events. While each department produces its own unique program booklet, the Family Guide is all-encompassing and includes events throughout the season that the whole family can enjoy. The club has mandatory membership for residents of the community.
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Approximately half of the club’s members are full-time residents, while the remainder treat Boca Raton as their second, seasonal home. Many members arrive for the holidays and stay to enjoy Florida’s balmier weather through the winter months. The Family Guide ensures that the various departments aren’t competing for members’ attention throughout the busiest season of the year, which runs from November 1 until the end of May. “The booklet ensures that our social calendar is developed very early in the year and that there aren’t any overlaps in programming between departments. It has streamlined our planning process for events and offers a cohesive experience for St. Andrews members and their visiting guests,” noted the club’s director of communications, Kristen Pfeifer. The booklet has been well received by members, who are better able to plan their guests’ visits ahead of time. “In recent years, we’ve undergone a renovation and we’ve changed our programming to appeal to a younger member demographic that has emerged. We have a lot of local residents and young retiree members whose grandchildren frequent the club over the holidays. The booklet has enhanced their experience, as well as that of our year-round resident members,” added Pfeifer. In recent years, the average age of the club’s membership has dropped from 76 to 59. To keep pace and to meet the more family-focused needs of this new demographic, the club has introduced additional kid-friendly programming, such as the Kids Can series – a very popular, interactive, and educational program that teaches life skills to the club’s junior members. The series includes classes in cooking, gardening, yoga, and archery. The Family Guide covers youth programs, but also contains separate sections for each of the various offerings for families, including the Kids Can program, Kids’ Club, Spa Kids’ Events, Family Events, Junior Tennis, Golf, and Fitness. The resource is easily navigable and is printed in an 8.5 by 11 format. The activities staff, as well as the social and events staffers, pull it all together into one comprehensive resource in the spring, with a print deadline of November 1st each year. With 730 members, the club’s initial print run of 300 booklets is enough to kick off the season. Since its printed internally, the staff is able to reprint as needed, making the booklet very practical to produce and use. BR
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of Private Club Directors. “The club’s board and the senior staff have probably both had issues in the past. There is a lack of trust for both. “There are eight ‘pillars of trust’ according to David Horsager, author of The Trust Edge. If any of those pillars of trust are broken there are questions, fear, anger equals conflict,” Welch added. “This will continue to happen until you have a board leader and a GM / COO that can communicate openly and freely. That both parties can claim a mistake or poor decision without being concerned about consequences or repercussions. “I believe the starting point of this conflict is also fear which is also an element of trust,” Welch added. “In my experience, conflicts can occur when expectations, roles and responsibilities of the board and management are not clearly defined and agreed upon,” explained Robert Gusella, general manager/COO of Belle Haven Country Club in Alexandria, VA. “In the absence of clarity and definition (and a mutual commitment to respect and abide by what has been agreed upon), there is the risk that a well-meaning board member(s) – very likely a successful business person or leader in their own rite – will delve into the daily operations of the club, usually under the premise of trying to ‘help’ or because the board member thought it was part of their ‘job’ (as a board member or committee chair) to help operate the club on a daily basis. “As the club industry leadership model adjusts to modern-day needs, clubs would be wise to adapt and modernize their governance models to be reflective of societal changes,” he added. Gusella has these thoughts on why this interference happens. “Weak management leadership, weak board leadership, overzealous board members, or a combination of these. Also, a poor or outdated governance model within the club (old-fashioned bylaws and rules, lack of a board policy manual or other governance resources, etc.) that allows for this situation to occur and persist. “The failure to understand and/or respect individual roles and responsibilities is also a factor. Finally, allowing such situations to persist without correction – once recognized – will only make a bad situation worse, likely leading to dysfunction in the club, frustration for all, and likely management turnover,” Gusella stressed. “The first step in resolving the issue is to first recognize that such a problem exists. Some clubs never see it or simply refuse to acknowledge it, and then wonder why things are not going well.” Jerry McCoy, an industry consultant and specialist working with BoardRoom Institute, says boards are only as good
as the individuals who serve on them. “Knowing the roles, responsibilities and parameters of the board is critical. The big question is, ‘What Makes a Good Board Member?’ Or better to consider, ‘What are the Traits of Bad Board Members?’ “A key problem may be the board member that knows everything. Now you would assume that having someone who knows everything available to you would be a good thing. Any problem that comes along can be easily solved by someone who knows everything. No problem, just ask them. Unfortunately, there’s a downside as the traits of these individuals don’t necessarily make for seamless governance,” McCoy suggested. In McCoy’s opinion, ‘know-it-alls’ usually exhibit some of, or all the following traits. 1. Personal agendas – They normally have a personal agenda to change something they don’t like about the club. 2. Need for more study – They always want more study or analysis about changes. This is especially true if the general opinion is contradictory to their own position. They can twist statistics with the best of them and always have a new perspective on a position that needs to be studied before the decision is made. 3. Service issues – From their perspective, things are never as good as they should be. Service is poor or inconsistent. Finances are not allocated correctly. There is always room to improve service while cutting expenses. 4. Management problems – Much of the club’s problems stem from management’s ineptitude. They normally have it in for a specific department head or the GM or both. They believe if we can just get rid of these individuals and get someone who knows how to do the job then everything will be great. 5. Lack of personal participation – If they have not participated in the decision then it is probably faulty. 6. The slowdown approach – Whenever there is an issue that is up for decision they will use the slowdown approach. 7. Anti-major cap x – They are normally a status quo person when it comes to major capital expenditures such as renovations or expansion. They believe everything can be improved by management. Mostly, but not always, they work against any major expenditure pretending to represent the membership. 8. Board votes required– This type of person wants the board to vote on everything. They disagree with most decisions that were not thoroughly vetted by the board. “If you look at some of the traits of bad board members it is easy to understand how they become self-important. It starts with why they ran for the board “They come to the board with a specific agenda to get something changed. They are uninterested with anything
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else. They press management to get their agenda item done,” McCoy expressed. “They’re on the board to protect the things their specific constituency wants. They make sure management doesn’t change anything that affects their group. They bring a special expertise to the table and think they have all the answers. “A perfect example is the board member who owns a restaurant. They believe that if management only operated the club’s F&B department as they ran their restaurant then everything would be OK. They’re all over management about changing to their way of thinking,” McCoy added. “Because they are successful in their own business they believe themselves to be efficiency experts. They think the whole problem is that the club wastes money and resources and they are elected to find the waste. They pressure to provide detail and second guess management decisions,” McCoy opined. “And finally, they feel they’ve been slighted by management in some way in the past. They believe the problem is the manager and their goal is to expose the GM’s deficiencies and eventually make a change. They undercut management at the board level.”
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erbated by the short term of president or board members who constantly cycle and continue asking questions. Third, board members take it upon themselves, either through ignorance of role or frustration with the GM, to extend their involvement into the day-to-day operations of the club. They are likely to have very strong opinions, but very little experience or facts to inform their view. This serves to undermine the GM’s authority with their team and creates chaos or conflicting priorities at the club. Furthermore, directors may begin having discussions in the parking lot and not raising key issues in the board meetings for all to consider. If your club has a strong GM, there is little the board can do to in reality to diminish the club’s success. On the other hand, there is much required of the board to compensate for a weak GM, which together will inevitably derail the club’s success. Boards as their top priority should hire the right management for their club, develop strategy with member input and market reality, and manage the financial performance and club’s dues structure. If these priorities do not remain the primary focus of the board’s time and energy, problems will ensue and fester over time. A board that does not have sufficient experience or appropriate diversity is likely to fall into the trap of drilling into too many tactical issues. Board member composition that does not mirror the complexion of members by age, gender, and 96
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BOARD-GM RESPONSIBILITIES A lack of clarity and not fully understanding each other’s responsibilities often gives rise to conflict, injected Michael McCarthy, CEO of Addison Reserve Country Club in Delray Beach, FL. “The club’s senior management is charged with managing the club’s operations on a day-to-day basis, and with managing staff. When the occasion arises that select board members, or the board as a whole, chooses to interject their individual ideas and recommendations into the operations of the club, it may turn out to be divergent from the club’s overall mission, values and strategic plan,” McCarthy explained. “A good example happens when a board member would like to exert their own influence. Well-meaning board members with expertise of their own may not have the best interests or understanding of the whole club in mind. “Individuals who are part of a club culture have often been involved, or are still involved in their own businesses. While the club operates under a business model, it is unlike the operation of corporate America. However, that doesn’t prevent individuals from suggesting that what works for their organization should also work for the club environment,” McCarthy added. Brett Morris, general manager and COO, the Polo Club of Boca Raton, FL says conflict “In our case, it arises largely
recreational affinity can lead to perspectives that conflict with the GM, who is on the frontline every day attempting to serve the interests of all members. The culture of the club can also either help or hurt when these issues arise. If the board culture is to allow or promote ‘sea gull’ behavior where a Board member (or a member for that matter) is permitted to just drop into management’s office, offer criticism on some narrow issue in their own self-interest, and then leave without offering a solution or agreeing to work personally on a resolution, then resentment will begin. This is a culture problem at the club that can become toxic in the relationship between management and the board. At Belle Haven, we retained a professional consulting firm, Global Golf Advisors, to help us unify the board, management and members around a singular strategic plan. This has become the standard by which we help prioritize all decisions facing the club for both the board and management. The involvement of a credible third party has been important to ensure that the management team is not the board’s sole source of information about the club. The board strengthened its nomination process by having a nominating committee independent of the board nominate a slate of directors every year. A rigorous selection criteria includes emphasizing both prior committee service at the club as well as relevant experience on the boards of other corporations or philanthropies. This has enhanced the board’s credibility among members.
from the fact that our membership is composed of people who were very successful in their professional lives, and believe that their success (and expertise in whatever field the success was attained) extends to an application in the private club industry and, finally, the fact that most of our members are retired, have a lot of disposable time on their hands, and are community-minded civic activists. “The conflict happens because board members have difficulty “distinguishing between policy initiatives (primarily a board responsibility) and operational oversight,” Morris expressed. “For example, board members routinely acknowledge that their primary role is one whereby they develop policies for the club based on input from the membership. However, it frequently develops that the board seeks to weigh in on how policy decisions should be implemented from an operational perspective without having a clear understanding of the impact that implementation has on staff (and sometimes financial) resources.” The Polo Club’s President Doug Green, and BoardRoom’s Distinguished Club President of the Year in 2012 gives a definitive answer. “Micromanagement exists in the club world when you have the wrong person at the top. Been there, done that,” he stressed.
“From an optimum governance standpoint, the answer is a very simple one: Outstanding boards do not manage the club, but rather ensure that the club is well managed by: • Hiring the best • Supporting the best • Retaining the best • Holding them accountable and then … getting the hell out of their way!!
BOARD BOOKS We restructured the board process and began sending electronic board books out five days in advance of board meetings, and using a consent agenda to ensure all discussions in the board focused on strategy and financials, not routine club operations or committee business. I also requested that the general manager include a rotating presentation from one club management professional in each board meeting to build personal rapport and understanding between the board and management. Our board meeting agenda has been modified to begin using routine executive sessions of the board to vet issues on the minds of board members that they might feel uncomfortable raising in front of management. This also gives the president an opportunity to share insights on the club’s strategic direction or collect feedback from the board on the GM’s performance. Real time feedback and course corrections are critical to help avoid those parking lot conversations! Management at Belle Haven also hosts an annual half-day board orientation session and club tour for all new board members to educate them on all aspects of the club’s operations, which has been very effective. The president attends and articulates the framework for how the board and committees operate within our governance model. As a result, they understand the consent agenda, confidentiality, and opportunity for executive sessions. This has
helped mitigate the continuity challenges of short three-year board terms. We encourage board members at Belle Haven to get to know the GM and management outside of formal board meetings. We have an annual board dinner with the management team and their spouses, and encourage other functions to mix and mingle with management. This helps build trust and allows the board to obtain access to important insights from management through strong relationships. This will also give the GM confidence to vet problems with the directors early and allow for proactive input when required or requested. Lastly, the GM and I also developed a new culture mnemonic called “HAVEN” that highlights our culture in terms of Hospitality, Attitude, Values, Enjoyment, and Nostalgia. The culture statements attached to each word highlight management’s responsibility to emphasize service to members and encourages members to have respect for longtenured staff members. This has helped build consensus about social norms on our board and around our club. This also makes it easier to call out board members, members or staff members for outlying behavior. BR
“Polo is a living, breathing example of how this works. It’s that simple,” Green offered. Phil Newman, partner with RSM US, and leader for the firm’s private club services feels intrusion by board members often happens because of a lack of transparency. “A common factor deals with lack of transparency, whether perceived or real when it comes to the financial management of the club. Managers need to take some responsibility for this and find a way to up their game in terms of their financial acumen and how they convey that to board members,” Newman suggested. “We often find that it is a suspicion from a treasurer that management is lacking in financial understanding that kicks off the downward spiral that is micromanagement. In our experience, the best and quickest way, to invite micro-management at a club is for management to demonstrate ➤
Joseph J. Thomas is the president of Belle Haven Country Club, Alexandria, VA.
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a lack of understanding of the financial results, as well as what they imply for future short and long-term success. “Managers should take this problem off the table – get the financial education they need, surround themselves with team members who know their numbers and use financial advisors that understand their club and the club industry and who can speak with authority to the board to address financial concerns and misunderstandings,” Newman added. So, what do these industry leaders see as solution? “The board members must determine whether or not they want to be an agenda-driven organization or a goaldriven organization. Hopefully, the latter, as it would be in everybody’s best interest,” stressed Addison Reserve’s McCarthy. “The board must then adopt, memorialize and communicate a formal system of how ideas and recommendations will be considered and flow through the process. Without doing so, management, staff, committees and even the board can become gridlocked and focused on self-serving agendas. Previously determined decisions for which circumstances have not changed, outlandish propositions and a large amount of unproductive and unnecessary busywork will take place. “The first step is to understand the board’s needs and the type of expertise you are looking to recruit. Then you need to focus on finding qualified board candidates that fit that profile and need. Thereafter, one of the best means of ensuring long term success is having a long-term succession plan,” McCarthy added. “Onboarding of new board members is the general manager and president’s responsibility. The use of an orientation process is absolutely critical. Board members must make a commitment to support the mission and core values of the club and also understand the expectations and environment they have a responsibility to govern. “Critical to the success of the club is the board member’s active participation in the club’s ongoing strategic plan, which is a living document and a roadmap for the future of the organization,” McCarthy opined. Recognizing a problem remains the first step to resolution, says Belle Haven’s Gusella. “If the key participants recognize and agree that the management team is responsible for operating the club on a daily basis (recognizing that club management is a career profession for which managers are well compensated and held accountable), and that service on the board is about being a volunteer leader tasked with providing strategic leadership and longer-term guidance to the management team – always in the best interest of the club (rather than a personal interest or agenda) – that’s a great start. “Benchmarking high-performing clubs, and then adopting best practices that make sense for an individual club, is es98
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sential,” Gusella expressed. “Every club is a little bit different, but if something is working well at one club, it’s likely to work well at another. And if there are traits that help to define high-performing clubs, it would be fair to expect that those traits, if adopted and tailored to your club, will result in higher performance at your club. We have experienced this at Belle Haven Country Club. “Defining boundaries and expectations is also very important, as is the building of a trusting working relationship between the GM, the board/president,” Gusella added. Several tactics to minimize conflict come to mind for the Polo Club’s GM Brett Morris. “First, it’s imperative to have an ‘onboarding protocol’… whereby new board members meet with sitting board members and senior management to review key documents, financial metrics/statements, operational challenges, and recreational utilization (F&B, golf, tennis, etc.) of their club. “Secondly, it’s important for the president and general manager to have a meeting of the minds for the parameters of board member interaction and involvement with operational aspects of the business. A president, who helps his board understand the appropriate limits of their interaction with management, not only assists in a smoother governance structure, but also establishes and maintains the support of the general manager who doesn’t feel an obligation to change the way the club is operated every time the phone rings or an email pops up,” Morris opined. In Morris’ mind, this ‘onboarding protocol’ includes: • New board member orientation session(s). • Clearly define areas of board member responsibility. • GM and the president’s concurrence on parameters for board interaction and involvement • Enforcement of responsibility boundaries by GM and president. Jerry McCoy suggests there are three important things clubs must address. “From a reactive perspective, the club president must address these problems firmly. Only with clear leadership at the top can the process be controlled. It may even require a tough conversation, even a threat of expulsion from the board, if that is an option. “This is the major problem in many clubs. One year the club has a great president and the next year the club gets a president that loses control of the board. That’s why it is a major problem when the boards that elect their own presidents do so as a popularity contest rather than based on merit. Presidents need to work their way up the chairs and provide a proven track record of ability to lead,” McCoy stated. “On the proactive side, the club must have a strong nominating committee in place that has thoroughly vetted all candidates. Vetting means reviewing how the club is governed before nominating a candidate and requiring that can-
didate buy-in to the system before they are placed on the ballot. Cull a potentially bad candidate early. “And finally, communicate to the membership what is expected from their board members and the limitations that the club places on them to govern effectively and fairly,” McCoy added. “Board and committee members can keep their fingers out of management’s pie by subscribing to a common set of core values that is the bedrock for the club’s strategic vision,” intoned RSM’s Phil Newman. “Adherence to those core values can help keep a club on a steady strategic course despite the players changing when board and committee members rotate or even when management changes. Identifying the club’s core values should be the cornerstone of any thoughtful, long term, strategic planning exercise. “Too many times conflicting messages emanate from the club’s boardroom following a meeting. We often joke that no one has yet invented a device to move information faster than it moves from a club boardroom to the bar. “Sadly, much of the messaging that makes it to the regulars at the bar is actually disinformation and not truly representative of the discussions and decisions the board has taken. Too often do we hear of the ‘rogue’ board member who, when not getting their way in the board room takes their agenda ‘to the streets’ in an attempt to undermine the hard work that just took place in the boardroom. “Volunteer members need to be held to a code of conduct, which of course, is built upon, the club’s core values. One of the most effective methods we have heard of, to ensure collective adherence to board/committee conduct expectations, is to make sure everyone hears the same message at the same time. “Before the start of any new board/committee term, all of the volunteer members are called together and receive orientation by the club president, and COO regarding the governance expectations and standards of the club, and the disciplinary actions related to non-compliance,” Newman expressed. PUBLISHER’S FINAL THOUGHTS As our contributors in this article stress, some of the issues arise during the private club’s governance process because of personal agendas, an unsettling lack of trust between parties, and the unending urge to micromanage. The reason micromanaging happens at the board level is because the board members are not clear of what their role really is in overseeing and leading the organization. Many times the general managers are at fault for not providing an in-depth board orientation, which spells out clearly defined roles and responsibilities. Today many clubs receive 10 or more copies of BoardRoom magazine, whereby every board member gets a copy.
I hear back from many GMs that have experienced less micromanaging, because the board, by reading from the same information, becomes more fully aware of what a volunteer board should be and do. Boards and a club’s management need to decide on what the process should be. How is a board orientation program developed, who should be included and when should it all happen? These are vital questions. Fact is, as prospective board members find their ways onto club committees, it’s vital that the orientation process start with a club’s committees to better prepare committee members for a later role on the club’s board. Boards often lack clear polices of what the appropriate actions are for management, and this often pits a club’s staff against the board. A valid orientation process can help initiate clear policies. Fear, concern and worry often are the root causes of micromanaging, as board members seek to find out more about the club’s finances, membership issues, the condition of the golf course and so on. The fear can also be personal. The board member may be afraid that their position of authority on the board will be threatened by a particular action. Or it could be that they are feeling unsure of their role on the board and within the club. I find the club general managers who have experienced micromanaging from board members are the ones who are not providing their board members with data, ongoing industry articles, and information and multiple surveys that keeps board members well informed about the club and the industry. Keeping the board in the dark is not a solution. In fact, it will exacerbate the situation. I believe, and I’ve seen it, GMs that provide their boards with up-to-date information, etc., seem to be the most successful. General managers can build trust with their boards, if everyone – the board, committee members and staff – knows the facts. Micromanaging often happens because board members are concerned; they are scared, may not have the correct information and they don’t know what else to do. It’s incumbent on the club’s general manager to eliminate those fears, and it all starts with a board’s proper orientation process. But perhaps we best leave the last words to Belle Haven’s GM Robert Gusella, which sums up fairly well how clubs should be governing themselves today. “I have a small sign that hangs in my office that’s titled, “The Five Rules of Private Club Governance.” Here they are: 1) Committees recommend 2) Boards approve 3) Managers implement 4) Staff serves 5) Members enjoy. While oversimplified, that’s a pretty good place to start, and an effective model for most private clubs.” At least, that’s the way I see it. BR John G. Fornaro, publisher NOVEMBER/DECEMBER 2017 | BOARDROOM
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CHRIS BOETTCHER
CLUB SERVICE
Christopher Boettcher, proudly a CCM and CCE, is the GM/COO at Burlingame Country Club near San Francisco, CA and a regular contributor to BoardRoom magazine. He can be reached at chris@boettcher.com.
Staffing Your Club Who’s Out There?
Where am I going to get staff? Future doers? Great new managers to help me exceed our ever-growing members expectations? Where do I find busboys and housekeepers? Is there anyone out there? I remember whining like this to a colleague because a far-away university was holding recruiting career fair. He told me, “Stop your whining and just do it - if you want to make a difference, go up there!” Although I didn’t appreciate it at the time, his advice about internship programming was exceptional. I have since hired over 100 interns in my career. We would always try to bring in one student from a top hospitality school, and challenge them through real-life experiences at the club.
trying to find out where the spoons were, much less paying attention to what was going on with interns for a season. But I was in charge of getting my own staff. This was a new adventure! Local staff from colleges has always been our best bet, beyond employee referrals. Between staff from our staff and nepotism, colleges have been the next best place. That is where I enjoyed the challenges young interns brought, as well as the verve and vigor. Long story short, the brightest and best interns became entry level managers. Today, many are peer GMs and more. The collection of clubs that takes advantage of this talent, are top-notch leaders in mentoring and fostering our fu-
Take a look at the CMAA website where you will find the Guide to Internship Program templates for how-to information as well as sample programming and evaluation forms. I’ve found these very helpful in our intern programming and look to improve our processes every year. I’ve had the honor of working with a number of interns in the past few years who have gone on to in management positions with great clubs. They were rotated around slightly but never wasted any resources creating jobs. They were effective at what they did in the short summers with us because they had a passion for what they were doing. I’m still practicing this at a local level and it is a staffing tactic for service in areas that have lacked personality before. But what about line staff? What tactics are your managers using? Do you have someone dedicated to producing staff at all levels? This is a crucial question boards should be aware of, and understanding what resources your management team is afforded. Although there’s not much a sitting board member can do, there is the patience of understanding the situation that helps. In my early years within the hospitality industry in hotels, it was always the human resources department’s responsibility to get staff. There was an advertisement in local papers and the like, with recruiting efforts hardly permitted into the mid-management ranks. Same with interns. I never experienced true internship programming. Upon coming into the club industry, I was too busy 100
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ture. I suggest managers go there and glean information on the intern programming from these clubs. Take a look at the CMAA website where you will find the Guide to Internship Program templates for how-to information as well as sample programming and evaluation forms. I’ve found these very helpful in our intern programming and look to improve our processes every year. I’ve had the honor of working with a number of interns in the past few years who have gone on to in management positions with great clubs. I urge each and every club to start an internship program. You do not need any special facilities - many managers complain that students are looking for housing. Although a plus, you CAN find students who live locally if you recruit carefully. It only takes a little time and effort. The benefits far outweigh that effort, especially if you look for seasonal helpers who bring a passion for the industry to their job every day. They are the future club managers who need the opportunity to become leaders. Let’s all help them lead on! BR
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Du Val International, Inc. specializes in the recruitment and placement of CHEFS only. Established in 1972, DVI works with the finest chefs worldwide and has placed many master chefs.
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POOL, BEACH AND PATIO FURNITURE
Steve Berlin (954) 614-1505 xhibtz1@xhibtz.com www.xhibtz.com
NOVEMBER/DE-
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APCD MOST TRUSTED VENDORS & CONSULTANTS N D O R
It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! Great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRUST – the most precious commodity and transaction of them all. These are businesses that put their customers first and do not focus solely on profit at any cost.
Amenities
Clocks
2536 Manana Drive Dallas, TX 75220 P: 214.351.2834 Toll-free: 800.969.8008 F: 214.351.2834 www.sportssolutionsinc.com
444 Reading Road Cincinnati, Ohio 45202 P: 800.543.0488 www.verdin.com
Consulting
Architects 6 West 18th Street 9th Floor New York, New York 10011 P: 212.229.0200 ext. 120 www.lichtencraig.com
7730 E. Belleview Avenue., Suite. A-101 Greenwood Village, Colorado 80111 P: 720.266.2582 www.mai-architects.com
North Palm Beach Office 1295 US Hwy One North Palm Beach, FL 33408 P: 561.626.9704 F: 561.626.9719 Peacock + Lewis Naples Office 1610 Trade Center Way, Suite 5 Naples, FL 34109 P: 239.631.2332 F: 239.300.6402 jon@peacockandlewis.com www.peacockandlewis.com
500 Skokie Blvd #444 Northbrook, IL 60062 P: 847.480.4844 | C: 847.421.4537 B.R. Koehnemann brkoehnemann@kempersports.com www.kempersports.com
Locations in Phoenix, Northern Virginia, Atlanta, Chicago and New York C: 602.684.0251 | P: 623.322.0773 Whitney Reid Pennell, president whitney@consultingRCS.com www.consultingRCS.com
Executive Search
501 Kings Highway East #300 Fairfield, CT 06824 P: 203.319.8228 Dan Denehy dan@denehyctp.com www.denehyctp.com
Tampa Bay - 727.366.0487 dick@@gsiexecutivesearch.com 15990 N Greenway Hayden Loop C-100 Scottsdale, AZ 85260 P: 480.477.1111 phxarch.com
St. Louis - 314.854.1321 scott@gsiexecutivesearch.com Cleveland - 440.796.7922 ned@gsiexecutivesearch.com Ft. Myers - 239.221.7045 ned@gsiexecutivesearch.com Northeast - 518.852.0986 dan@gsiexecutivesearch.com
Architects | Planners | Interior Designers 44 North Main Street South Norwalk, CT 06854 P: 203.354.5210 www.rm-arch.com
Washington DC - 540.323.3388 sharlyn@gsiexecutivesearch.com www.gsiexecutivesearch.com
Executive Search Kopplin Kuebler & Wallace Southwest Office 7349 Via Paseo Del Sur, Ste. 202 Scottsdale, AZ 85258 P: 480.443.9102 F: 480.443.9642 Dick Kopplin, partner dick@kkandw.com www.kkandw.com Kopplin Kuebler & Wallace East Coast Office 132 Tulip Tree Court Jupiter, FL 33458 P/F: 561.747.5213 C: (407) 864-6798 Kurt Kubler, CCM, partner kurt@kkandw.com Kopplin Kuebler & Wallace Cleveland Office 20373 Scott Drive Cleveland, OH 44149 P/F: 440.783.1268 C: 412.670.2021 Tom B. Wallace III, CCM, partner tom@kkandw.com
Foodservice
3908 N 29 Avenue Hollywood, FL 33020 C: 954.805.7935 P 954.920.0737 sales@deikitchen.com www.deikitchen.com
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APCD MOST TRUSTED VENDORS & CONSULTANTS N D O R
It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! Great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRUST – the most precious commodity and transaction of them all. These are businesses that put their customers first and do not focus solely on profit at any cost.
Furniture
Interior Design
Photography
P.O. Box 842 Ashburnham, MA 01430 P: 978.827.3101 sales@eustischair.com www.eustischair.com
95 Reef Road Fairfield, CT 06824 P: 203.259.2555 Craig J. Smith studio@c2Limited.com www.c2limited.com
3186 E. La Palma Avenue Anaheim, CA 92806 P: 800.653.5766 www.eaclubs.com
5 Hwy 82 West Magnolia, AR 71753 P: 800.221.0408 sales@southernaluminum.com www.southernaluminum.com
11071 Indian Lake Circle Boyton Beach, FL 33437 P: 954.614.1505 Steve Berlin XHBITZ1@XHBITZ.COM www.xhibtz.com
Game Equipment
Real Estate
700 School St. Unit. 2 Pawtucket, RI 02860 P: 401.365.1171 Peter Cafaro pcafaro@jbd.cc www.jbd.cc
Kid’s Camps
Technology 821 Executive Drive Princeton, New Jersey 08540 P: .877.671.2267 ext. 500 info@kecamps.com www.kecamps.com
Lockers 3780 Rippleton Road, Route 13 South Cazenovia, NY 13035 P: 888.647.2778 F: 315.655.2033 custserv@cornilleauusa.com www.cornilleauusa.com
Golf Course Architect
1825 West Walnut Hill Lane, Suite 110. Irving, TX 75038 P: 972.815.4000 Toll Free: 800.433.3630 info@hollman.com www.hollman.com
Menu 14332 Justice Road Midlothian, VA 23113 P: 804.897.8600 F: 804.897.8603 Lester George, president lester@georgegolfdesign.com www.georgegolfdesign.com
212 Old Quitman Annex Road Adel, Georgia 31620 P: 229.896.1492 C: 678.429.7997 Toll free: 888.324.5020 F: 229.896.1180 Hilda W. Allen hildahwa@gmail.com www.hildawallen.com
2046 Castor Avenue - 1st Floor Philadelphia, PA 19134 P: 215.535.6940 steve@the-polar.com www.the-polar.com
3650 Mansell Road, Suite #225 Alpharetta, GA 30022 P: 888.240.3501 info@globalnorthstar.com www.globalnorthstar.com
Uniforms
Pear Tree Plaza Building D 289 Hwy 33 East Manalapan, New Jersey 07726 P: 800.711.5885 F: 732.792.0111 Martin Klein www.ambassadoruniform.com
5442 Gateway Plaza Drive Benicia, CA 94510 P: 707.746.7011 Debbie Surani info@highenduniforms.com www.highenduniforms.com NOVEMBER/DECEMBER 2017 | BOARDROOM
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BOARDROOM MAGAZINE ADVERTISING INDEX ACCP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
EZ Links. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
McMahon Group. . . . . . . . . . . . . . . . . . . . . . . . . . 8
Addison Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Flora Springs Winery. . . . . . . . . . . . . . . . . . . 34-35
Northstar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Ambassador Uniform. . . . . . . . . . . . . . . . . . . . . 45
FOOD-TRAK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
ParBar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Big John Grills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
GCSAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Peacock + Lewis. . . . . . . . . . . . . . . . . . . . . . . . . . 49
BoardRoom magazine Subscriptions. . . . . . . . 65
GSI Executive Search . . . . . . . . . . . . . . . . . . . . . . 51
Polar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Boothe Group. . . . . . . . . . . . . . . . . . . . . . . . . . . 101
GMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
PGA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Bozeman Club & Corporate Interiors. . . . . 40-41
High End Uniforms. . . . . . . . . . . . . . . . . . . . . . . . 56
RCS Hospitality. . . . . . . . . . . . . . . . . . . . . . . . . . . 71
C2 Limited Design Associates. . . . . . . . . . . . . . . 15
Hilda Allen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Rogers McCagg. . . . . . . . . . . . . . . . . . . . . . . . 38-39
Chambers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
HINT | Harris Interiors. . . . . . . . . . . . . . . . . 36-37
RSM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Club Mark. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Judd Brown Design. . . . . . . . . . . . . . . . . . . . . . . 45
Salsbury. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
ClubTec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
KECamps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Troon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Creative Golf Marketing . . . . . . . . . . . . . . . . . . . 27
Kopplin Kuebler & Wallace. . . . . . . . . . . . . . . . . 25
Trsut Edge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
DEI Foodservice Equipment. . . . . . . . . . . . . . . . 59
Lichten Craig. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
USPTA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Distinguished Clubs. . . . . . . . . . . . . . . . . . . . 86-87
Luxury Golf Tours. . . . . . . . . . . . . . . . . . . . . . . . . . 5
WebTec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Eustis Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
MAI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
XHIBTZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
BOARDROOM MAGAZINE COUNTRY CLUB INDEX Chris Boettcher, CCM, CCE, GM/COO, Burlingame Country Club near San Francisco, CA
Greg Meland, president, Interlachen Country Club, Edina, MN
Leroy Franklin, athletic director and head strength and conditioning coach, Sweetwater Country Club, Sugarland, TX
Brett Morris, general manager and COO, the Polo Club of Boca Raton, FL
Doug Green, president, the Polo Club of Boca Raton, FL
MacDonald Niven, MA, CCM, CCE, general manager, Almaden Golf and Country Club, San Jose, CA
Mark Gurnow, general manager, Superstition Mountain Golf and Country Club, Gold Canyon, AZ
Gregg Patterson, member, The Beach Club of Santa Monica, CA
Robert Gusella, CCE, general manager/COO, Belle Haven Country Club, Alexandria, VA
Patrick Pettit, general manager, Sweetwater Country Club, Sugarland, TX
Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club
Robert A Sereci, CCM, GM/COO, Medinah Country Club, Medinah, IL
Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI Stephen LoGiudice, general manager and COO, The Club at Ibis in Palm Beach, FL Craig D. Martin CCM, general manager/COO, St. Andrews Country Club, Boca Raton, FL 106
Michael McCarthy, CEO of Addison Reserve Country Club in Delray Beach, FL
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King Purnell, president, , Cherokee Country Club, Knoxville, TN
Joseph J. Thomas, president, Belle Haven Country Club, Alexandria, VA Paul Wickes, president, The Ford Plantation, Richmond Hill GA
Th e Bo a rd Ro o m ma ga zin e
CELEBRATING 21 YEARS OF EDUCATING THE PRIVATE CLUB INDUSTRY ISSUE 273
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VOLUME XXI NOVEMBER/DECEMBER
Vo lume XXI, No vemb er/Decemb er, 201 7
BoardRoom’s Distinguished Clubs Program Selects Brand Ambassadors - PAGE 20 Picture above from top to bottom, left to right: Tony D’Errico, Damon D’Orio, Bill Howard, Matthew Linderman, Joel Livingood, Thorsten Loth, Michael McCarthy, Jeffrey McFadden, Brett Morris, Paul Mroz, Jill Philmon, Christine Pooler, Robert Sereci, Nicholas S. Sidorakis, Roger Simon, Terra Waldron.