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C E L E B R A T I N G 23 Y E A R S O F E D U C A T I N G T H E P R I V A T E C L U B I N D U S T R Y ISSUE 286
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VOLUME XXIII NOVEMBER/DECEMBER
Vo l um e X X III, N o vem ber / Dec e m be r 2 0 1 9
PGA PRESIDENT SUZY WHALEY SAYS
“WE’RE BULLISH ON THE GAME.” 10 | PUBLISHER’S PERSPECTIVE
HOW DO PRIVATE CLUBS BUILD A LUXURY LIFESTYLE BRAND?
38 | EXECUTIVE COMMITTEE
GENERAL MANAGER SUCCESSION PLANNING IS STRATEGIC PLANNING
80-82 | INNOVATIVE IDEAS
FEATURE TO BOARDROOM MAGAZINE
92-93 | SPECIAL ANNOUNCEMENT
2019 BOARDROOM “EXCELLENCE IN ACHIEVEMENT AWARDS”
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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
It’s The People Who Make It Happen As 2019 fades into history it gives us the opportunity to look at the ‘State of the Private Club Industry ‘and some of the people who make it what it is. One of those is Suzy Whaley, the 41st President of the PGA of America, and the first woman president in the history of the organization. President Whaley is the focus of our cover story this issue. Golf makes a huge impact on the economy wherever it’s played and, in the U.S. alone, it’s an $84 billion business. Front and center are the 29,000 PGA members, including of course, those who play under the aegis of the PGA and its many championships, tours and inter-country competitions, and the many PGA members who work directly with golfers and members at golf courses and clubs all over the country. Whaley, in our cover story, talks about her vision for the PGA, and among other things, the expanding educational certification opportunities for PGA Members. The PGA’s new Specialist Program allows PGA Members to focus on their specialized career path, which includes golf operations, teaching and coaching and executive management. The result is well qualified professionals available to clubs and people who are well qualified to advance in their careers. n n n
Most people in the private club industry are well aware of the issues clubs face when considering how and when their dining rooms should operate, especially when many food and beverage operations break even, at best. It’s a well-known argument that private club food and beverage amenities serve a finite number of people, whereas the public restaurant down the street can capture the patronage of a much larger turnover and greater business. Lisa Carroll of Kopplin Kuebler & Wallace, in this issue, raises the question: Is it time to re-evaluate dining hours and the number of events? The discussion centers around rising wages, a nationwide kitchen labor shortage and the impact this can have on a private club. So are there solutions?
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BOARDROOM | NOVEMBER/DECEMBER 2019
Mark Filippo, a restaurant and club consultant, in his discussion with Carroll, recommends that clubs consider borrowing some ideas from the restaurant industry with a “less is more” approach. When should F&B facilities be open, should there be shortened hours? Should more than one food amenity be kept open? And how does a club handle these challenges in light of the escalating demands of members? Carroll has some suggestions that are required reading for anyone involved in the operation of a private club. n n n
This issue also features introductions to 2018’s final four top presidents: Dr. Josh Weiss, President, Four Seasons Golf and Sports Club, Dallas, Texas; Anne Willcoxon, President, Moraga Country Club, Moraga, CA; Tad Willenbrock, President, Glenmoor Country Club, Cherry Hill Village, CO; and John Young, President, Monterey Peninsula Country Club, Pebble Beach, CA. This, of course, sets the stage of the selection and announcement of BoardRoom’s Top 2019 Private Club Presidents from Around the World, in our January/February 2019 BoardRoom. We’ll have detailed information about our Distinguished Club President and other presidents selected for their outstanding efforts with their private clubs. n n n
Our BoardRoom magazine “Excellence in Achievement” Awards are the only private club industry awards that recognize the clubs’ business partners. And our BoardRoom magazine 2019 “Excellence in Achievement” Award recipients receive their due in this issue, specifically for their 2019 achievements. 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. B R
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Featured Columnists Henry Delozier Rob DeMore John G. Fornaro Bonnie J. Knutson
Nancy M. Levenburg Stephanie Marchman Gregg Patterson Kevin F. Reilly
Michelle Riklan R. Todd Swisher Michelle Tanzer Dave White
Contributing Writers Matthew D. Anderson Bruce Barilla F. H. (Frank) Benzakour Nancy Berkley Chris Boettcher Bill Boothe Lisa Carroll Ron Cichy Rita B. Craig Michael Crandal Dave Doherty John R. Embree
Mark Filippo Jonathan Gold Susan Greene Rob Harris Angela Hartmann Phil Harvey Larry Hirsh Jeremy Hoch David W. Lacey Melissa Low Craig Martin Sally Milano
Peter Nanula Tom Neill MacDonald Niven Whitney Reid Pennell Ted Robinson Steve Schendel Meghan Thibault Gordon Welch Bruce R. Williams
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CONTENTS | NOVEMBER/DECEMBER 2019 PUBLISHER’S PERSPECTIVE | 10
LEGAL COMMITTEE | 12
BOARDROOM BASICS & BEYOND | 14
HOW DO PRIVATE CLUBS BUILD A LUXURY LIFESTYLE BRAND?
EMPLOYEE SPEECH AT PRIVATE CLUBS IN THE ERA OF PRESIDENTIAL TWEETS
EMPLOYEE SPEECH AT PRIVATE CLUBS
BY JOHN G . FOR NAR O
BY MICHELLE TANZER & STEPHANIE MARCHMAN
We don’t have to look very far to see and find luxury brands. So what is luxury lifestyle branding, why is it created, what are the benefits and what does it mean for private clubs today?
In our current political environment and with campaign season heating up, questions arise about the rights of club employees to promote their political beliefs at work. In particular, does the right to speak freely cover all speech made by club employees at all times or can such speech be restricted?
If your resume is not easy to navigate and does not get to the point quickly, it will end up in the trashcan. Does it have a header? If not, then your reader may need to dig through your resume to find out who you are. Why bother when they can simply grab the next document in their pile?
GLOBAL PERSPECTIVES | 16
PLIGHTS AND INSIGHTS | 18
EXECUTIVE COMMITTEE | 26
PUTTING YOUR STRATEGIC PLAN TO WORK
SURVEY RESEARCH PITFALLS
THE NOOSE OF THE EXPERIENCE ECONOMY
B Y N AN C Y M . L E VE NB U RG
BY ROB DEMORE
BY HENR Y D ELOZIER
Strategic planning is a priority now in most private clubs. As painful lessons learned from the Great Recession have been followed by the promise of a rising economy, many private clubs are updating their strategic plans with the urgency borne of recruiting and retaining more members.
Without a doubt, professionally conducted marketing research can be expensive. But what you get are a number of benefits. Professional researchers are well versed in how to properly construct surveys and word questions. They carefully consider question order and context, often using the “funnel” approach in which general questions typically precede more specific ones.
Over the last 10 years or so, I’ve made an ongoing commitment to what I will call my haircut place. I would not call it a barber shop nor a salon, but a haircut place that I keep choosing to give me a $19 haircut every two weeks. While the price has skyrocketed 26.7 percent (ok, $4) over our time together, what keeps me there is not just a sub$20 haircut, but also the niceties the haircut place has added to its customer experience.
MEMBERSHIP MUS INGS | 76
CLUB FACTS & FIGURES | 90
TRIBAL MAGIC | 94
LITTLE THINGS MEAN A LOT
FINANCIAL AND LIFESTYLE TRENDS DEFINING THE CLUB INDUSTRY
UPPING YOUR LIKE FACTOR DOING FUNERAL
BY KEVIN F. REILLY & R. TODD SWISHER
BY GREGG PATTERSON
Member satisfaction is your number one goal. Right? Wrong! Satisfaction happens when you meet your members’ expectations. It’s like getting a “C” grade on a term paper. But member delight happens when you exceed their expectations. It’s like getting the “A.” The difference is in the verbs – meets versus exceeds.
I attended three funerals recently. Each was for a member of my club and each was sad, each was life affirming and each was a powerful expression of club as a “community of caring.” Lots of love was exchanged, lots of hugs were given, lots of comforting words were spoken, lots of tears were shed and lots of memories were shared. Emotional stuff. The stuff of club.... I felt the love.
BY BONNIE J. KNUTS ON
Member satisfaction is your number one goal. Right? Wrong! Satisfaction happens when you meet your members’ expectations. It’s like getting a “C” grade on a term paper. But member delight happens when you exceed their expectations. It’s like getting the “A.” The difference is in the verbs – meets versus exceeds. There are myriad ways that will take your club from meets to exceeds and here is my top three.
BY MICHELLE RIKLAN
SIT DOWN STAND OUT
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SECTIONS COVER STORY PACKAGE . . . . . . . . . . . . 20
DEPARTMENTS
PGA President Suzy Whaley says “We’re Bullish on the Game.” By Dave White
TE NNI S COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
TECHNOLOGY PERSPECTIVE . . . . . . . . . 44
By John R. Embree
A New Initiative to Grow the Game
Club Software – A 20-Year Retrospective By Bill Boothe
E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
CASE STUDY . . . . . . . . . . . . . . . . . . . . . . 48
Does Your Club Have Asset Managers? By Jonathan Gold
By Sally Milano
A SSOCI A TI ON OF P RI V A TE CL UB D I RE CTORS . . . . . . . . . . . . . . . . . . . . . 56
NANCY’S CORNER . . . . . . . . . . . . . . . . . 68
By Meghan Thibault
Net Generation Enables More Than Just Tennis Growth
BoardRoom magazine’s Top Private Club Presidents 2018
State of the Golf Industry Flat Will Be the New Up
G RE E N COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
By Nancy Berkley
GCSAA Offers Friend Memberships for Those Who Love Golf By Angela Hartmann
INNOVATIVE IDEAS . . . . . . . . . . . . . 80-82
Army Navy Country Club Custom Craft Brews/Tasting Events Private Club Pop-Ups Naples Yacht Club Renovation By Meghan Thibault
A SSOCI A TI ON OF P RI V A TE CL UB D I RE CTORS . . . . . . . . . . . . . . . . . . . . . 88
BoardRoom Bootcamp Sharing Some Basics By Gordon Welch
G OL F D I SP UTE RE SOL UTI ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
ON THE FRONTLINES . . . . . . . . . . . . . . . 86
Retaining an Aging Membership
Home Purchasers Rejected for Membership Sue Real Estate Broker and Agent
By MacDonald Niven
By Rob Harris
CLUB SERVICE . . . . . . . . . . . . . . . . . . . . . 98
Do You Want Your Gm To Last? By Chris Boettcher
COMMITTEES EXECUTIVE COMMITTEE . . . . . . . . . . . . 28
EXECUTIVE COMMITTEE . . . . . . . . . . . . 40
HOUSE COMMITTEE . . . . . . . . . . . . . . . . 64
HR COMMITTEE . . . . . . . . . . . . . . . . . . . 78
By Ron Cichy & Matthew D. Anderson
By Whitney Reid Pennell
By Lisa Carroll & Mark Filippo
By Rita B. Craig
Empathy and Appreciation Lead to Trust
EXECUTIVE COMMITTEE . . . . . . . . . . . . 30
Why Are Alcohol-Fueled Incidents Increasing at Clubs? By Phil Harvey
Becoming an Employer of Choice
HOUSE COMMITTEE . . . . . . . . . . . . . . . . 66
HR COMMITTEE . . . . . . . . . . . . . . . . . . . 79
By Tom Neill
By Jeremy Hoch
By David W. Lacey
An Anniversary Affair! Make It the Big Deal It Is
MEMBERSHIP COMMITTEE . . . . . . . . . . 54
Two Simple, Impactful Object Lessons EXECUTIVE COMMITTEE . . . . . . . . . . . . 34
MEMBERSHIP COMMITTEE . . . . . . . . . . 55
By Larry Hirsh
By Ted Robinson
By Michael Crandal
Is A Recession in Our Near Future?
EXECUTIVE COMMITTEE . . . . . . . . . . . . 36
Your Board Members Are They Change Agents or Caretakers? By Peter Nanula
EXECUTIVE COMMITTEE . . . . . . . . . . . . 38
General Manager Succession Planning Is Strategic Planning? By Craig Martin
The Not So Far Off future
HISTORIC COMMITTEE . . . . . . . . . . . . . 42
Making Cents of Prospective Member Needs and Requests
EXECUTIVE COMMITTEE . . . . . . . . . . . . 32
Checklist for A Better Locker Room
By Susan Greene
Starting from Scratch - Part VI
LEGISLATIVE COMMITTEE . . . . . . . . . . . 60
The Latest on Minimum Wage, the Cadillac Tax, OSHA Reporting Requirements and Overtime By Melissa Low
HOUSE COMMITTEE . . . . . . . . . . . . . . . . 62
Checklist for A Better Locker Room By Bruce Barilla
The Paperless Club Ways to Make It Happen
Six Performance Management Trends To Jump On at Your Club
GREEN COMMITTEE . . . . . . . . . . . . . . . . 72
Our Greens Should We Rebuild, Regrass Or Neither? By Dave Doherty
GREEN COMMITTEE . . . . . . . . . . . . . . . . 73
Bigger Isn’t Always Better By Steve Schendel
GREEN COMMITTEE . . . . . . . . . . . . . . . . 74
Challenges Golf Clubs Face Today By Bruce R. Williams
HR COMMITTEE . . . . . . . . . . . . . . . . . . . 77
Over-Invest In People
By F. H. (Frank) Benzakour
BOARDROOM MAGAZINE “EXCELLENCE IN ACHIEVEMENT AWARDS” PAGE 92
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
How Do Private Clubs Build A Luxury Lifestyle Brand? We don’t have to look very far to see and find luxury brands…brands that stand the test of time, that retain their value and while not totally immune to the vagaries of the world economies, continue to be ‘wanted’ and remain successful. They are brands that command loyalty… a very desirable attribute. So what is luxury lifestyle branding, why is it created, what are the benefits and what does it mean for private clubs today? Jean-Noel Kapferer in his book, The Luxury Strategy: Break the Rule of Marketing to Build Luxury Brands, says, “Luxury is a concept as old as humanity. Luxury is different, and a global way of understanding a customer and managing a business.”
Exclusivity also defines luxury, and people want exclusivity. So how does this requirement square with the increasing demand? Exclusivity, Kapferer says means limiting the brand…a distinguishing factor between the luxury product and ‘mass’ products. In reality we can actually look at luxury as a culture, which in the private club industry means the ‘club’ culture…with its own peculiarities, dynamics and exclusivity. Fact is, it’s likely many private clubs just don’t know about luxury lifestyle branding…yes, a private club might be branding – with a name perhaps of a benefactor or other amenity, but it’s not luxury lifestyle branding. So how do private clubs build a luxury lifestyle brand? “A club’s brand is significant because it shapes how the marketplace views the club,” explained Frank Gore of Gore Golf, and chief analyst of BoardRoom’s Distinguished Clubs program. “It can have an effect on the joining fee, retention and the club’s ability to attract new members. It is more than the traditional branding of the club’s name, logo and tag lines. It includes the club’s history, image and what makes it special.
The next generation of members, the Millennials, are branding fanatics. They buy Apple products, wear Nike and drive BMWs. This generation has been raised on branding, and I believe to reach this next generation of private club members your club must stand out. Your club needs to have a strong brand. And not just a strong brand, because by the time Millennials can afford to join your club your club needs to be a luxury brand. There are myriad reasons why. Luxury was invented in Europe eons ago and developed worldwide by French and Italian companies, which have become great global brands, for example, companies we know reasonably well…Ferrari, Louis Vuitton, Cartier, Gucci, Prada… Luxury is quoted as often being visible because of the logos and brands, but luxury really never compares itself with others. In fact the brands are quite different and generally a rarity. However, increasing demand can encroach on this rarity raising an interesting issue. 10
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“Clubs are a luxury and are selling an intangible luxury lifestyle to the market’s most affluent consumers and therefore should position the club accordingly,” Gore added. “Effective branding should invoke emotion,” exclaimed George Stavros, principal with Pace Setter Technology, a firm that works at improving operations and branding experiences for private clubs. “Emotion is one of the four Es including experience, exclusivity and engagement. Simply put, effective branding builds loyalty. It creates a buzz. Members talk about how wonderful it is at the club and that builds desire, which leads to exclusivity, “Stavros added. SEE PUBLISHER’S PERSPECTIVE | 99
MICHELLE TANZER
STEPHANIE MARCHMAN
LEGAL COMMITTEE
Employee Speech at Private Clubs In the Era of Presidential Tweets In our current political environment and with campaign season heating up, questions arise about the rights of club employees to promote their political beliefs at work. In particular, does the right to speak freely cover all speech made by club employees at all times or can such speech be restricted? President Trump’s prolific use of social media to disseminate information to his 62.5 million followers has caught the attention of his supporters and opponents alike. As a result, and without regard to the side of the aisle they would sit on, people may conclude from Trump’s style that they have the right to say what they wish, whenever they wish to say it. In particular, they may also conclude they have the right to promote their political beliefs wherever they are, whether at work or at home. But this is simply not the case, especially for employees working in private clubs. It is well known that the First Amendment provides us with the right to speak freely; however, this right only protects against the government’s infringement of speech. Moreover, the freedom of speech has its limits, even when the government is involved. For example, true threats, fighting words, obscenity, defamation and perjury are never protected under the First Amendment. Even though the boundaries of the rights of free speech have broadened over the years, employees still do not enjoy unlimited First Amendment rights at work. Given this reality, private employers are legally permitted to enact and enforce policies restricting a wide range of employee speech, including political speech. Take Juli Briskman for example. In October 2017, Ms. Briskman made national news when a picture went viral of her riding a bicycle and holding up her middle finger as President Trump’s motorcade passed. The following week, her private employer, Akima LLC., terminated her employment based on a violation of its written social media policy. Ms. Briskman brought a wrongful termination action against Akima alleging that her free speech rights were violated. Ultimately, her claims were dismissed by the court. These principles of free speech and the permissible 12
BOARDROOM | NOVEMBER/DECEMBER 2019
restrictions would extend to private employers generally, including private clubs. Despite the outcome of Ms. Briskman’s case and the limits of the First Amendment, private clubs should exercise caution when establishing their policies because some of their employees’ speech is protected. For example, employees’ disclosures of employer violations of laws, rules, or regulations may be protected by a particular states’ private section whistleblower act. Additionally, employees’ complaints of discrimination are protected under Title VII of the Civil Rights Act. Finally, employees’ speech regarding their wages, efforts to organize unions and other workplace concerns may be protected under the National Labor Relations Act. This campaign season, private club boards and managers should review their written social media and related policies and make sure they are sufficient to give clear guidance concerning the club’s expectations of each employee’s conduct. If not, they may wish to update their policies to add specific guidelines with regard to employees’ activities and conduct including politically oriented speech. Such written policies would serve to protect the club employer in the event it took action against a club employee for speech determined to be unacceptable or otherwise damaging to the club and help to avoid another situation like Ms. Briskman. B R Michelle Tanzer, Esq. serves on the National Club Association board of directors and chairs the global club and branded residences group at Nelson Mullis. She can be reached at michelle.tanzer@NelsonMullins. com or (561) 866-5700. Stephanie Marchman represents private employers in all areas of labor and employment law at Gray Robinson and can be reached at Stephanie.Marchman@Gray-Robinson.com or (813) 273-5000.
MICHELLE RIKLAN
BOARDROOM BASICS AND BEYOND
Michelle A. Riklan, ACRW, CPRW, CEIC, CJSS is a career strategist, consulting and search executive with Kopplin Kuebler & Wallace, LLC. Michelle specializes in creating personal career marketing tools (resumes, LinkedIn, bios), soft-skills training (teambuilding, communication, public speaking/presentations) and executive search. Contact Michelle at (908) 415-4825 and at Michelle@kkandw.com.
Keep Your Resume Out of the Trashcan Tip 1 – Cut and Paste? The Profile: Can someone else cut and paste what you wrote and put it on their resume? If the answer is yes, then it is time to re-write your resume. A resume is a marketing tool. The number one goal of a resume is to get an interview. Employers are looking at hundreds of resumes – so how do you get yours noticed? If it has the same generic wording as everyone else, it will most likely go to the trashcan. Your profile should grab the reader’s attention and compel them to keep reading. Showcase what you bring to the table and highlight your unique value. Your profile is your Value Proposition Statement. Employers want to know very specifically, what you can do for them. Tip 2 – Less is Not Always More: Length of the Resume Who told you that resumes must be one page? I rarely create a one-page resume, and when I do, it is generally for a recent graduate who has little experience. If you have been in the workforce for more than a few years, then your resume will most likely be two pages. A solid resume is rich in content and accomplishments. If you can “squish” it all on one page, then you may have your reader asking, “What has this person been doing that they have nothing to say?” Even an entry-level candidate who has had solid internships and seasonal experience may need a two-page resume. A little extra tip – This does not mean that a resume should be wordy and contain irrelevant information. It needs to be strategic and concise. Concise does not mean using a font so small that your reader needs to whip out their reading glasses. Do not tick off a potential employer! Some of us get annoyed at the reminder that we need reading glasses. Tip 3 – Professionalism: Competition is fierce and professionalism is crucial for job seekers! So how can we make sure that the resume reflects a professional image? Contact information needs to be clear and accurate. One designated phone number is best and that number must have a professional voicemail (in your own voice), stating
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your name and asking the person to leave a message. “Hey Whassup”, and “Kim, Mark, Fluffy, and Muffy aren’t home right now”, are not professional messages. The email address that you choose must also reflect professionalism. SoccerDad22@sample.com, Flirtygirl2U@ sample.com — what do these say about your professionalism? Choose a professional email address such as your name. JohnSmith@sample.com is just fine. Tip 4 – Do Not Wait Until the Last Minute! Don’t let great job opportunities “pass you over”, hop to it! The last thing you want is to have a chance meeting with someone or be introduced to someone who asks for your resume and you are unprepared. Or, they say they will look you up on LinkedIn and they cannot find you! Job searching today is a proactive activity. Make sure your marketing tools are all in place and represent you appropriately. Throwing together a profile and resume at the last minute is reactive and the quality of your materials will suffer. Tip 5 – Don’t Waste My Time! One of the biggest mistakes a person can make on their resume is wasting the reader’s time. When a recruiter or hiring manager has a stack two- feet high of potential applicants, they do not want their time wasted. If your resume is not easy to navigate and does not get to the point quickly, it will end up in the trashcan. Does it have a header? If not, then your reader may need to dig through your resume to find out who you are. Why bother when they can simply grab the next document in their pile? By quickly scanning the resume, (in less than six seconds) can the reader see the specific value that you might add to the organization? (Examples – how you can save them money, generate business, lead a team…?) If you make it easy for the hiring manager to read your resume, you are more likely to receive a call for an interview. B R
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CUSTOM CLUB STANDARDS DEVELOPMENT
HENRY DELOZIER Henry DeLozier is a principal of Global Golf Advisors. You can contact him at hdelozier@globalgolfadvisors.com.
GLOBAL PERSPECTIVES
Putting Your Strategic Plan to Work Strategic planning is a priority now in most private clubs. As painful lessons learned from the Great Recession have been followed by the promise of a rising economy, many private clubs are updating their strategic plans with the urgency borne of recruiting and retaining more members. As these new market forces take shape, a look at how the best clubs develop sound strategy seems a timely exercise. Colin Burns, the general manager at the Winged Foot Golf Club in Mamaroneck NY, is overseeing the on-going implementation and updating of the club’s strategic plan while the club prepares for the 2020 U.S. Open Championship. Over the past five years, Burns has been responsible for a $50 million renovation of Winged Foot’s two 18-hole courses while building a caddie center, employee house and multi-building bath house complex. He describes a disciplined approach to strategic planning at Winged Foot. “We developed a general sense of what we wanted to accomplish, divided it into four phases. Each phase was shared with management before we drilled down deep on the plans and eventually rolled out phase after phase,” Burns said. In each phase, actions and decisions were made deliberately, following a facts-based regimen. “We required that management provide us with specific needs that were based in fact, and not just wish-list type information,” Burns added. In the case of the golf shop, the clubhouse and kitchen, the respective managers were required to meet with the appropriate consulting firms that had been engaged by the club to assess specific needs and to provide me – and ultimately the 16
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board – with an action plan for their particular area. As part of this planning process the respective managers were asked to tour and study facilities at peer clubs to compare our plan.” When Winged Foot’s demographics began to change, the club’s strategic plan was adjusted to reflect changes to its membership. “As initiation fees increased, so did the sophistication level of the incoming members,” Burns said. “As a result, we had to ensure that our strategic plans allowed for this changing demographic. The new demographic, like at many clubs, is younger, wealthier, more sophisticated and very active.” At venerable Southern Hills Country Club in Tulsa OK, general manager Nicholas Sidorakis uses a systematic approach to strategic planning that ensures a long-range perspective. “We use a three-year approach to five key points of focus: master plan, membership, programs, governance, tournaments and traditions. Two board members look after each point of focus,” he said. Sidorakis includes his staff in thinking about the future. “We study our market, benchmarks, best practices, demographics and KPIs tied to goals and bonus compensation. I want my team to challenge me,” he added. Innovation and market leadership are key elements of the Southern Hills strategic planning process. “Sometimes we try to set the trends for our market. We have introduced hydronics (the use of a liquid heat-transfer medium in heating and cooling systems) while rebuilding greens. This capability enables us to better manage the turf health of our bentgrass greens by heating and cooling our putting surfaces. “Sometimes we can adjust the root-zone temperature by 25 degrees. As such, we don’t syringe greens and use no fans in the summer heat. This is a game changer,” Sidorakis said. Southern Hills, a future PGA Championship venue, is also converting its board election process to a nominated slate instead of contested elections. Membership approval has been overwhelming. Mountain Lake in Lake Wales, FL, was established in 1915, calling on Fredrick Law Olmstead Jr, whose father was the planner of Central Park in New York City, to layout the 3,500-acre community. The Colony House and Mountain Lake Historic District are listed on the National Register of Historic Places. With all that history, general manager Eric Dietz works with his board to keep the club relevant to new generations by keeping the management staff engaged with members. Beyond using member survey tools, the Mountain Lake management team facilitates coffee talks with small groups of members to keep a finger on the club’s pulse. Dietz monitors standard industry trend information and watches the restaurant and hospitality segments for emerging concepts to ensure that he, his staff and his board members remain current. Top clubs like Winged Foot, Southern Hills and Mountain Lake don’t have a monopoly on strategic thinking. But they do show clubs of all types that a club’s strategic plan determines its long-range vitality and relevance. B R
NANCY M. LEVENBURG 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.
PLIGHTS AND INSIGHTS
Survey Research Pitfalls “Let’s do a survey to find out what members think.” Have you ever heard that before? Perhaps your club wants to examine members’ satisfaction with your current services array? Or perhaps your board is seeking a “vote” on a proposed new initiative, like renovating the clubhouse’s exterior or adding a fitness center? Or maybe you’re looking to explore members’ thoughts on a potential policy change, such as the dress code in the dining room? Given the availability of FREE survey creation softwares – from SurveyMonkey to Qualtrics to SurveyPlanet and Zoho Survey – which can be delivered online, it can be highly cost-effective to opt to write your own survey, rather than seek the assistance of a professional marketing research or consulting firm, which could run anywhere from $5,000 - $7,000 upwards to $35,000 or more. And who’s not enamored by the possibility of saving tens of thousands of dollars by gathering data in-house? Plus, with a web-based survey launched in-house, you can collect information quickly and easily. Without a doubt, professionally conducted marketing research can be expensive. But what you get are a number of benefits. For example, one fundamental benefit is confidentiality. People often fear that the feedback they provide on a survey will be linked back to their name. They wonder, “If I say something negative, will someone take it out on me?” By using a third-party researcher or consulting firm, it helps to assure respondents that their responses will remain anonymous…their individual identities will remain private. This is important if you want to obtain honest responses. Another benefit is objectivity. Professional “outside” researchers are unbiased; this prevents internal biases from jeopardizing the quality of your findings by skewing results. Your work is guided by a fresh set of eyes. 18
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A professional’s expertise is also an important consideration. According to the Pew Research Center, your research efforts “… will be wasted if the information gathered is built on a shaky foundation of ambiguous or biased questions. Creating good measures involves both writing good questions and organizing them to form the questionnaire. Designing the questionnaire is complicated because surveys can ask about topics in varying degrees of detail, questions can be asked in different ways, and questions asked earlier in a survey may influence how people respond to later questions.” In other words, QIQO, or Quality In, Quality Out. (This is a phrase used in quality circles to refer to the fact that the value of the inputs usually influences the value of the output. It puts a more positive spin on GIGO… Garbage In, Garbage Out.) Professional researchers are well versed in how to properly construct surveys and word questions. They carefully consider question order and context, often using the “funnel” approach in which general questions typically precede more specific ones. They know which words to avoid (like could, would, should, or might). They also know how to create exhaustive response categories – ones that will capture at least 90 percent of respondents’ answers. They avoid loaded questions, double-barreled questions and using unbalanced response scales. Professionals will also be more familiar with research methodologies and analysis techniques that yield rich, more useful results. Simple spreadsheet software can easily produce a tabulation of responses and a mean, but what about cross-tabulations to explore the relationship between two variables? Or the standard deviation, and its statistical significance? We all know, for example, that 5 is the mean (average) of 4 and 6, as well as 1 and 9. But the range – or distribution – of values is very different. The mean doesn’t tell the whole story. Lastly, project management is a key. Developing research objectives, writing surveys (then pre-testing and improving them), developing the sampling plan, launching and monitoring the study, checking/cleaning data, and finally analyzing the results takes a lot of time! Painstaking attention needs to be devoted to each step; any missteps will not only waste time and jeopardize the integrity of results, but ultimately lead to lost dollars. As one market research firm advises, “Quick and dirty is often that – dirty. Use caution when trying to knock out results fast, as you can often overlook critical steps, demographics, or key insights. More than one DIY market research project has been completed while failing to answer the one main question that needed to be answered.” BR
COVER STORY |
BY DAVE WHITE, EDITOR
PGA PRESIDENT SUZY WHALEY SAYS
“WE’RE BULLISH ON THE GAME.” Suzy Whaley, the 41st President of the PGA of America, also makes her mark as the first woman president in the 102-year-old organization’s history. The PGA, established in April 1916, has the task of establishing and setting standards of the profession along with growing the interest and participation in the game of golf…an $84 billion industry today. The Association is home to about 29,000 men and women members who participate in men’s, seniors and women’s major championships, including the PGA Championship, the KitchenAid Senior PGA Championship and the KPMG Women’s PGA Championship. There’s also a focus on the biennial Ryder Cup, the PGA Cup and the Women’s PGA Cup. While professional play remains a major purpose, the growth of the game of golf today is front and center for the PGA, as it promotes the growth and support of the game through various programs and events. Suzy Whaley, the first woman to hold a national office with the PGA, served as secretary and then vice president before beginning her term as PGA President in 2018. As a professional golfer, Whaley, in 2003, became the first woman in 58 years to qualify for a PGA Tour event, when she qualified for the 2003 Greater Hartford Open. Earlier this year, Whaley was named to the top 100 teachers’ list from Golf Magazine; she is recognized as a top 50 female instructor, and a LPGA Teaching and Club Professional who played on the LPGA Tour in 1993.
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She’s certainly a member of a golfing family. Her husband, Bill, a PGA Professional and her first coach, works for the PGA Tour. Daughters Kelly and Jenn both attended college on golf scholarships, and Kelly made it through the first stage of qualifying school on the Symetra Tour. Even as President, Whaley is the PGA director of instruction at the Country Club in Mirasol, Palm Beach Gardens, Florida. In this Q and A with BoardRoom magazine, President Whaley talks about her vision for the PGA, the challenges and the roles of PGA Professionals, club executives and managers in the coming years. B OAR DR OOM: As PGA President and leader, what’s your vision for the PGA of America in the coming years? PR ES IDEN T W HALEY: The PGA of America is one of the largest working sports organizations, with nearly 29,000 PGA Professionals helping people enjoy the game for a lifetime across the world. Together, with my fellow leaders and our executive team, our vision is to advance the livelihood of our Members, elevate the profession and help the game evolve. We are strategically focused on two paths: Creating opportunities for our Members and making golf a game that welcomes all. One of our biggest challenges is actually one of our greatest opportunities. We want to get clubs in more people’s hands and for the game to more closely resemble the communities we serve. We want more people of color on our courses, more women and more junior boys and junior girls playing golf. We want to pursue every avenue to let people know that golf is for everyone. ➤ PGA PRESIDENT SUZY WHALEY NOVEMBER/DECEMBER 2019 | BOARDROOM
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from Cover Story | 21 BOARDRO O M : In your opinion, what does the PGA do well now, and secondly, what can it improve upon?
Our PGA Professionals are not only experts on the game and the sport’s best coaches, but the tangible connection between golf facilities and all who play the game. While our Members represent the gold standard in golf, they are lifelong learners, continuously enhancing their skills, so they can deliver experiences that are valued by today’s consumers. We are committed to our Members, but also to all those we serve in the marketplace. Our partners – such as OMEGA, Cadillac, National Car Rental, Aon and many more – are extremely important to our mission. And these relationships, which drive brand awareness, remain strong. Our Association also runs some of the most respected championships in the world: The PGA Championship – one of golf’s four major championships for men; the KPMG Women’s PGA Championship – a major championship in women’s golf; the KitchenAid Senior PGA Championship – the oldest major championship in senior golf, and the Ryder Cup, a biennial competition with
We are all in this together, so it makes great sense for private clubs to work directly with PGA Professionals to overcome challenges that we may face. A challenge brings opportunity — to grow and enhance your business; to discover new pathways for revenues and profits; to reallocate resources; to launch new programs at your facility, such as PGA Jr. League, and more. Through collaboration, we can work together to identify areas of opportunity. It’s a win-win situation for both the private club and the PGA Professional. The end result could pay dividends for years to come. 22
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Europe that transcends golf as one of the most unique and tradition-rich competitions on the global sports calendar. We’ve worked hard to put processes in place to increase inclusion across the board – in our membership, our governance, our suppliers and for those who play the game. We have a long way to go, but we believe in the plan we have in place and are encouraged by the progress we’ve made. We must continue to take steps to ensure everyone feels welcome in the industry, at the golf course and as fans. We are also looking to promote the next generation of Career Services for our Members, to make sure we continue to have the best talent in the industry at all levels. This means growing the number of opportunities promoted, increasing industry satisfaction and facilitating underrepresented candidates. As well, we want to make our Members’ lives better; help improve the health of facilities at which they work and leave the game in a better place than we found it. B OAR DR OOM: The PGA is expanding its educational certification opportunities for PGA Members. What do you see as the roles and responsibilities of PGA Professionals and Members, in light of the PGA’s thrust in Member education? i.e. certification programs etc.? How does this expand the career possibilities for PGA Members? How have PGA Members received these programs?
At the PGA of America, we continue to evolve and enhance the curriculum for our Members and for our certifications beyond membership. We recommend all PGA Professionals take advantage of advanced learning and are pleased to see engagement increasing every year. As we further promote advanced education and its value to the marketplace, employers will understand the levels achieved and our PGA Professionals’ efforts will be rewarded in career possibilities. For example, PGA Master Professionals pursue the highest level of education a PGA Member can achieve. This capstone achievement can only be obtained after a decade of membership in the PGA of America. And since the PGA Certified Professional Program’s inception, more than 1,600 PGA Professionals have earned over 2,800 certifications combined in their desired career paths. At least five years of PGA Membership is required to become a PGA Certified Professional. The new PGA Specialist Program allows PGA Members to focus on their specialized career path – Golf Operations, Teaching & Coaching or Executive Management. The Specialist Program can only begin after three years of PGA Membership. Combine this focus with the rigorous 800 hours of educational training it takes to become a PGA Member, and it is easy to see why PGA Professionals are the most qualified to advance in the workplace throughout their career. B OAR DR OOM: What are the challenges facing the PGA Profes-
sional in the coming years? What has to happen to entice more people, including kids and women, to the game? How has the game changed? ➤
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from Cover Story | 22
We are bullish on the game. Golf is on the upswing and PGA Professionals and the PGA of America have a great deal to do with that growth. We are leading a culture of innovation, so that we are part of – and not a victim to – inevitable disruption. We are excited about the new PGA.com and the possibilities it brings to our PGA Professionals in the digital landscape, as well as our outreach to consumers. We’re also excited about youth participation, as our PGA Jr. League Golf enrollment has grown 67 percent in just the last three years alone. And I’d like to think we’re just getting started, as the growth in junior golf looks extremely promising. Girls’ golf is on the rise, accounting for 36 percent of the 2.5 million youth golfers. Meanwhile, the number of girls playing competitive golf grew by more than 288,000 over the past decade. We recently acquired Nextgen Golf, a company whose reach is vast among high schools and colleges across the United States, and they also offer solutions for us to fill in the gaps for what’s next in the 20- to 30-year old market. As we reach out to all age groups and demographics, our PGA Professionals work extremely hard to provide the best experience possible, for as long as possible. For us, great opportunities lie in the growth of golf and in the inherent qualities the game provides, including health and wellness, family engagement, business networking, competing and new player programming, to name a few.
PHOTO ABOVE: PGA PRESIDENT SUZY WHALEY, PGA PRESIDES OVER THE PGA ANNUAL MEETING AND THE PGA OF AMERICA’S NEARLY 29,000 PGA PROFESSIONALS. TOP PHOTO LEFT SIDE: WHALEY GREETS ONE OF 60,000 PGA JR. LEAGUE GOLFERS, A RECORD TOTAL IN 2019. BOTTOM PHOTO LEFT SIDE: A PGA MASTER PROFESSIONAL, WHALEY WAS NAMED AS ONE OF THE “TOP 100 TEACHERS IN AMERICA” BY GOLF MAGAZINE FOR 2019-2020 ALL PHOTOS COURTESY OF PGA OF AMERICA
Currently, fewer than one woman for every four men plays the game and this presents room for growth. Teaching the game to individuals from diverse backgrounds will make our facilities look more like the communities we live in but will also provide a great source of revenue and growth of the game for PGA Professionals. That’s why diversity, inclusion, women’s golf, Baby Boomers and youth play are all passions of mine. They all lead to more golfers. B OAR DR OOM: Based on these factors, what do you see as the role of the PGA Professional, including 1) Club professionals, director of golf and teaching professionals, and 2) as club executives and senior managers of clubs, particularly private clubs, over the next decade?
PGA Professionals impact the business of the game every day with the membership and customers they serve. As Executive Managers, Directors of Golf, Directors of Instruction and many other career leadership positions, PGA Professionals are skilled to deliver in coaching, operations, food and beverage, and all facets of a club’s operation. Yet, what differentiates a PGA Professional is their level of skill on the course and their acumen to enhance the golf experience at the facility, to provide great revenues across all lines of business at any club. With more play comes more engagement and more spending. PGA Professionals that oversee the entire process have a clear understanding of course activation, as well as the value of hiring other qualified PGA Professionals for golf operations and on the lesson tee. B OAR DR OOM: What can private clubs do to help with the challenges the PGA Professionals face?
We are all in this together, so it makes great sense for private clubs to work directly with PGA Professionals to overcome challenges that we may face. A challenge brings opportunity—to grow and enhance your business; to discover new pathways for revenues and profits; to reallocate resources; to launch new programs at your facility, such as PGA Jr. League, and more. Through collaboration, we can work together to identify areas of opportunity. It’s a win-win situation for both the private club and the PGA Professional. The end result could pay dividends for years to come. B R
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ROB DEMORE Rob DeMore is president of Troon Privé and can be reached at (480) 477-0558 and via email: rdemore@troon.com.
EXECUTIVE COMMITTEE
The Noose of the Experience Economy “Fundamentally, customers do not want choice; they just want exactly what they want.” – B. Joseph Pine II, The Experience Economy, Updated Edition Over the last 10 years or so, I’ve made an ongoing commitment to what I will call my haircut place. I would not call it a barber shop nor a salon, but a haircut place that I keep choosing to give me a $19 haircut every two weeks. While the price has skyrocketed 26.7 percent (ok, $4) over our time together, what keeps me there is not just a sub-$20 haircut, but also the niceties the haircut place has added to its customer experience over the years. When I first began going, I was attracted to the way they softened my wait time with one waiting area television dedicated to sports channels and the availability of current sports magazines. In the time since, the noose of the Experience Economy has mercilessly forced these nice people to offer me additional amenities to protect them from the risk losing my presence. Their app can tell me just when to walk in, to save me from needlessly wasting my time watching sports, eating complimentary candy and hogging WiFi. I have my choice of water or soda and a hot towel for my face. I can pay as I go or purchase a season pass to get even more value for my money, and I can even pay $5 for a shoulder massage, should the stress of my haircut necessitate a pick-me-up.
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Oh sure, they have kept me as a customer all these years, but they’ve also created a monster. I’m already simmering that there is no free coffee or cookies gently baked with a candy surprise inside. Both of us have become victims of the Experience Economy. They have had to assume the ongoing expense of frilly “wasted” costs in order to survive and I have become a cookie monster. At my haircut place. This is also a reality for private clubs when making choices about applying energy and resources not only to the enormous level of capital improvement investment now sweeping our industry, but also to the in-between micro-spaces of this Experience Economy. More and more, people are expecting just one thing - whatever they want. Because it is especially difficult to apply a minimalist approach to a luxury item like a country club membership, sustainability is dependent on having the means to create thoughtfulness in the club. This, in part, explains why the ongoing costs of a country club kitchen is a necessary, albeit expensive, investment. There are more allergies and menu modification requests than ever before (in a less than scientific study of comparing kitchen tickets over the last decade, we’ve noted that special requests have jumped more than 100 percent at our clubs). Today is the time to acknowledge the demands of the Experience Economy in our present and future cash use strategies because when (and not if) the next economic downturn occurs, the pressures will only intensify as we scrutinize our choices. Only the private clubs already mindful of the little things that complement the beautiful new clubhouses will succeed in keeping the noose loose. B R
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RON CICHY
MATTHEW D. ANDERSON
EXECUTIVE COMMITTEE
Empathy and Appreciation Lead to Trust Trust is sacred. It’s at the heart of all relationships and relationships are the cornerstones in private clubs. There are two ways to develop trust in relationships: By demonstrating empathy in a person’s time of need and by giving someone consistent and meaningful appreciation. Both lead to increases in trust, which increases employee engagement and ultimately leads to greater results. Picture this real scenario: “I’m sorry, sir, I think I need to go home,” the supervisor says to the general manager. “Miguel,” the GM responds, “I don’t understand. You know how important this event is. We’ve been planning for this all spring. What’s wrong?” “Well sir, my family in Ecuador…” he pauses, “there was a volcano this morning. I’m not sure if they are okay or not. I just can’t focus on work.” EMPATHY AND COMPASSION
This is a difficult situation. It’s a safe bet that, while the specifics may be different, several managers in the club have dealt with similar scenarios. The questions are: How do they deal with it, and how do they take the opportunity to build greater trust? Some managers would take the easy way out, argue that there is nothing they can do, and say: “I’ll let you out first tonight.” Empathetic leaders, on the other hand, seek to be present, ask questions, engage in dialog and work to support the person in need. Empathy is companionship in silence and being compassionate when a person is facing hardship. Empathy is letting a person feel their feelings and seeking to understand and reflect their emotions. The act of being empathetic creates a shared experience which bonds two people together; this bonding forges trust. Empathy starts with the belief that every person has the capacity to be empathetic when they choose to be. One of the common strengths of private club leaders is that they have the capacity to be powerful stabilizers in reactionary situations. With empathy, this strength has the potential to make them less effective. Instead, challenge the club managers to override their problem-solving nature and to slow down. The process of asking questions and truly being present will make the other person feel cared about and valued. This experience will lead to developing trust between the manager and talent. Picture another real scenario: As the server talent prepares to leave at the end of a long busy evening, the manager gives his go-to send-off, shaking each person’s hand while saying, “Good job tonight,” robotically, over and over. Until one server finally asks: “What exactly is it that I did well?” With a long, awkward pause, the manager is both embarrassed and mortified. He has been called out for paying lip service to his talent. The 28
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pause ends when the server says, “Yeah, that’s what I thought,” and walks away with the manager’s hand still extended. Appreciation is more than saying the things that managers are “supposed to say.” Appreciation is an opportunity to engage with another person about the tasks they do, certainly and it’s also an opportunity to share with them, who they are as a person, through your eyes. This is an opportunity to share a special moment that is thoughtful, making it meaningful and memorable. The manager, who truly had the best intentions at heart, instead could have said: “I appreciate the way you cared for (name the club members) this evening. They were looking for an extra special experience while hosting their parents and you delivered masterfully. Thank you for your servant leader’s heart.” Think if you received appreciation such as this at the club. It would knock your socks off! This type of appreciation is specific, meaningful and demonstrates the way the manager views the talent. This is the type of appreciation that makes people want to come to work, and over time individuals recognize that the person giving it sees them for who they truly are. When individuals feel “seen” through the use of specific appreciation, they begin to have more trust in those with whom they work. This trust leads to greater engagement, which ultimately leads to greater results for the club. Challenge yourself: The next time you can appreciate someone, take a moment, think of what made the situation significant and share explicitly with the person what it is that their performance tells others. You will find that the recipient feels closer to you and has a higher degree of trust in you. BR Dr Ronald F Cichy, O.M. is professor emeritus, Michigan State University and Matthew D. Anderson is chief brand officer, Engaged Education
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EXECUTIVE COMMITTEE
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Why Are Alcohol-Fueled Incidents Increasing at Clubs? What may be good for your revenue stream may be bad for your club’s risk exposure. At least that’s what this insurer found when we looked back at our club claims history from our more than 25 years in insuring city, social and golf clubs. Although alcohol consumption in our insured clubs trended downward in the 1990s and 2000s, alcohol-induced incidents at clubs have since been on the rise. In fact, our in-house data show that, over the past five to seven years, the frequency and severity of alcohol-related incidents has in total exceeded those of the previous 20 years in aggregate. Even as laws governing service of alcohol have become more restrictive and liability more established, incidents at clubs (as well as other establishments) remain all too frequent. It’s important for club management to recognize and take action to mitigate this risk exposure and understand their responsibilities when serving alcohol. REGULATION HISTORY Let’s rewind to the 1980s. It was during that time, that state-enacted dram shop laws became more commonplace across the country. These laws define to what extent establishments serving alcohol can be held liable for incidents caused by inebriated customers. According to FindLaw, 43 states plus the District of Columbia have dram laws in effect today. With these changes to alcohol serving and consumption, insurers worked to create mandatory training guidelines for staff at insured establishments, including golf and social clubs. These are not only focused on prevention measures but also focused on helping staff to identify overserved customers. The regulations of the 1980s were successful. Research from the National Highway Traffic Safety Admission posted by Rutgers Center for Corporate Law and Governance shows that since the passage of the dram shop laws in the 1980s, the percentage of alcohol-related traffic deaths dropped from 54 percent in 1986 to 39 percent in 1997. It continued to decrease from 44 percent in 2004 to 34 percent in 2013. RECENT CASE STUDIES According to our records, since 2015, alcohol-related incidents at clubs have significantly risen. Not only has the quantity of related claims increased, but the size of associated settlements has also increased. This costs both insurers and clubs millions of dollars. For example, a club in Florida recently was forced to pay more than $8 million when servers were found to have overserved a member who was a known diabetic and alcoholic. The member sustained permanent injuries caused by a fall. Additionally, a wedding at a Maryland club took a dark turn to the tune of a $5 million pay out when one of the guests suffered severe spinal damages from a dance move. The guest had been reportedly served more than one dozen drinks. These cases are just two of many recent incidents implicating the club industry. This rise in incidents could be because of: the increase in pressure to 30
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sell more food and beverage; the growing availability of review sites; employee fear of negative repercussions from not serving an influential club member; or the availability of ride sharing services. While we continue to speculate about the roots of the problem, there are measures clubs can take to mitigate their risk exposure. Club owners should ensure staff and servers are aware of the following: • Clubs cannot serve minors alcohol and must ID individuals • Club staff cannot serve those who they know have histories of alcohol problems • Bartenders or servers who continue to provide alcohol to guests who are clearly intoxicated will be held liable • Clubs may not serve outside the bounds of their liquor license. In addition, these best practices can help clubs avoid alcohol-related incidents: • Instruct staff on how to identify intoxicated individuals • Ensure the club is prepared to offer transportation to patrons with a ride sharing or taxi service • Have food easily available for patrons who are consuming alcohol • Provide employees with training so they understand the state’s dram shop laws and are prepared to deal with the behavior of a heavily intoxicated customer • Consider installing a video surveillance system to assist the club in the event of fraudulent or exaggerated claims. Assuming the rate of alcohol-related incidents is rising across the industry as we’ve seen among our insureds, clubs need to prepare their establishments and employees. To best understand and implement these best practices, clubs should work with insurance providers who understand the club environment and can recommend specific risk mitigation tactics that might work for them. BR
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EXECUTIVE COMMITTEE
Two Simple, Impactful Object Lessons We’ve long heard the old saw, “A picture communicates a thousand words.” These diagrams might well be more than 1,000 words, but they do offer clarity of thought. And you just might want to make sure all board members have this before them every board of directors’ meeting. It just might make for shorter and more productive meetings as well as fewer words in the meeting’s minutes. BR
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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. www.linkedin.com/in/michaelcrandal or (760) 464-6103 direct.
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Make Sure to Sign Up for our Sessions at the CMAA 2020 World Conference Culinary Leadership at a Higher level / Saturday, February 8 / 7:00 am - 3:00 pm Three Key Leadership Lessons for Every Club Executive / Wednesday, February 12 / 9:45 - 11:15 am Please visit booth #828 at the Club Business Expo Monday and Tuesday, February 10th & 11th
LARRY HIRSH
EXECUTIVE COMMITTEE
Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www.golfprop.com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia. He blogs on variety of club and appraisal issues at http://blog.golfprop.com
Is A Recession in Our Near Future? I’m no economist, but enough of them are predicting a recession that it would seem prudent to prepare accordingly. Some think it will be sooner than we might expect, as articulated by economist Sven Henrich for CNN. The president, running for re-election would prefer we view the economy more positively and credit him accordingly in November 2020. Regardless of how you view current economic conditions, the potential for economic downturn after 11 straight years of expansion warrants consideration, at the very least in planning your club’s future. Pilots are taught to “stay ahead of the airplane” and what I am suggesting here is that golf and country clubs (especially member-owned), often burdened by a cumbersome decision-making process seek to similarly stay ahead by planning intelligently for the future. Though it may sometimes seem so, clubs are not islands unto themselves. Like other businesses, clubs are impacted by external conditions. Even the most successful and prestigious clubs need to understand their market, their strengths and weaknesses and the vulnerability of their membership. For sure, I’ve learned that NO CLUB IS BULLETPROOF in an environment of declining participation and competition from a variety of activities for the recreational dollar. Since the last recession in 2008, the US has lost nearly 16 percent of its private clubs. Many have simply closed while some have become open to the public. What can your club do to be ready for the next recession? While it is abundantly clear that those clubs, which avoided reinvestment in their facilities, suffered the most, there are also examples of clubs that over-invested, accumulated excessive debt and failed. Some were rescued by private equity backed investors. While this can be an option in some cases, the requirement for profit most certainly changes the culture of a club and may impact how some members perceive its desirability. In order to avoid becoming a casualty, clubs have to plan effectively. While it’s no secret that clubs that don’t move forward seem to struggle, it’s also quite common for clubs that implement assessments to experience resistance and membership attrition as a result. What’s right for each club is different. However, the planning to be done must include an objective assessment of the club’s market and market position, along with accurate, objective and realistic analysis of the desires of both current and potential future members. Timing should also be considered, especially as it relates to broader economic conditions. Some club leaders and consulting firms advise clubs from the perspective of facilities and space planning and design. Others view clubs exclusively through operations and still others from a purely financial perspective, often focused just on cost. Each of these perspectives can only be effective if viewed as part of the whole, considering the others as equally critical to the success of the club. Integrating
market analysis, cost of improvements, revenues and expenses and the desires of the membership are all equally important components of the overall decision-making process. For instance, let’s say a club has a dated banquet facility and clubhouse member areas are similarly “tired.” The club has an attractive golf course with aging infrastructure (irrigation, cart paths and bunkers) on a size-challenged site, and boasts a very desirable location, which is convenient to a large number of potential members. There are funds for improvements but they are limited and to address the entire wish list would require debt above their available funds. What do they do? First and foremost, any club has to determine what it wants to be and what it can be. The (hypothetical) club in question is limited by its lack of available land and limited funds. They have a decent sized core golf membership and an aging house membership. The food and beverage operation loses money (like many private clubs). The first decision the club has to make is whether it seeks to focus on golf or food and beverage. If the F & B facilities are upgraded, will it produce enough revenue to pay for the improvements? If the golf and member facilities are upgraded, will it attract more members and possibly allow the club to establish entrance fees? While estimating the costs of these improvements is a big part of the equation, understanding the club’s market position is even bigger. Where is there more competition? Golf or F&B? Where is there opportunity for growth? In both instances, the answers are found through sound market analysis. In other words, before even considering the cost of various improvements, examining the market, the club’s market position and the club’s limitations and potential as dictated by its “bones”, infrastructure and location is necessary to understand the market and the club’s SEE HIRSH - EXECUTIVE COMMITTEE | 97
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PETER NANULA
EXECUTIVE COMMITTEE
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. He can be reached at (949) 715-0602 or via email: pnanula@concertcapital.com.
Your Board Members
Are They Change Agents or Caretakers? Each year, the members of 3,300 member-owned private clubs elect roughly 10,000 new board members. The question is: Will they lead their clubs into the future, or merely preside over the status quo for another year? The trends in the club industry are well known: Club participation rates are declining (2018 total golf rounds across the U.S. are down 4.8 percent year-over-year), golf appeals to a narrowing audience, and alternatives abound to claim our shrinking leisure time. Boards governing member-owned clubs elect a few new nominees each year, in hopes of refreshing the club’s vision and attracting a new generation of club members. However, most boards resist change and reluctantly kick the can to the next board. Why is this? Why does the club industry adapt more slowly than other industries? For one, the nomination process often seems to lock in the mindset of the last decade. Older club members with stature gain board roles and then nominate their friends of the same age. Kurt Kuebler, (KOPPLIN KUEBLER & WALLACE) suggests that the nominating committee is the committee with the most power and influence at the club. Therefore, you see men still dominating club boards even though women represent nearly one quarter of all golfers, according to the National Golf Foundation. Women also make most family purchasing decisions. This also explains why capital dollars often flow disproportionately to golf course projects over clubhouse upgrades or new amenities. Inertia is structurally built in. Another factor is lack of accountability. Most companies react quickly to a changing competitive environment – if they don’t, the stock price falls and management (and the board) gets fired. Clubs were founded as a respite from this and most are still organized as cooperatives. Boards do not get fired; they just rotate. Staff is not accountable when the board has no club management expertise and only meets for a few hours per month. Thanks in large part to the industry consulting firm, Club Benchmarking, data is starting to become more prevalent, but club software and reporting notoriously lags other hospitality sectors. Lastly, human nature plays its role. How many of us take a controversial position when welcomed into a new group? What board member wants to push through a tough vote on a new fitness center and threaten some friendships in the process? Most club members feel grateful to be nominated to the club’s board and simply want to fit in – not rock the boat. We recently spent time with a top-ranked club in Northern California where the long-time president used his political capital to push through 36
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a $5 million new member grill with only a few votes to spare. He took personal heat over championing the project. Many questioned his design choices and criticized the use of club dollars. Strain was placed on many of his friendships at the club, but he gained the respect and admiration of the entire membership after the benefits were apparent. Today, the club is thriving and attracting younger families, partly because of the refreshed member spaces. He feels vindicated by his leadership, but he admits that egos were bruised and friendships were tested in the process. What is the point of volunteering for board service, if not to move the club into the future? The National Club Association’s, Club Governance Standards, indicates that only 38 percent of clubs include strategic planning items on each board meeting agenda. The promise of club bylaws lies in constantly bringing in new blood to make the changes necessary to keep the club relevant for the long term. If new board members simply perpetuate the status quo, the club will soon fall behind nearby clubs with modernizing leaders. An aging membership and board that fails to imagine and fund a forward-looking club vision will lose members and lose relevance in its local club market. So, welcome to club leadership and governance. How will you lead? Having been in the boardroom of dozens of member-owned clubs in 2018, I can attest that leaders who are willing to push the envelope, are leading their clubs to new heights. B R
PHOTO BY GIDEON HELLER
ADDISON RESERVE COUNTY CLUB LIGHTS UP AT NIGHT WITH A NEW LOOK
CRAIG MARTIN Craig Martin, CCM, formally COO/GM of St. Andrews Country Club and now principal of Club Leaders Group can be reached at (561) 316-4150 or cmartin@clubleadersgroup.com
EXECUTIVE COMMITTEE
General Manager Succession Planning Is Strategic Planning We have all read time and time again about the importance of strategic planning being paramount for the immediate and future needs of any successful private club or business for that matter. Oftentimes the focus is on buildings, renovations, enhancements, etc. while the critical role of who is going to take over the reins when the general manager leaves is sometimes thought about – but not really talked about. This aspect of strategic planning is often overlooked is called succession planning for all the leaders within the management team of the club. Leadership is an essential asset of every club and it is important to include a path for the future leader who will be tasked with implementing the strategic plan. As we advance our careers, often moving from club to club in order to achieve the pinnacle role at the pinnacle club, before we move into semi or permanent retirement, what priority have we placed on succession planning? Succession planning seems to be non-existent in the club industry. We have witnessed most general managers ending their careers only to find their former club having to hire an executive search firm for tens of thousands of dollars to find a replacement. There is a duty and responsibility that should be a top priority for a general manager in succession planning. Even though a leadership position can end earlier than anticipated, as a custodian of the club who has built a solid team of professionals, general managers should constantly be looking at the future succession line of promotion from within the ranks. Planning for your replacement is one of the highest considerations for a general manager who is considering on leaving to embark on a new path of life. In my 40-plus years in the business of hospitality, I’ve always felt it was important to leave a legacy of building a team of outstanding professionals to ensure the club continues to run as well as it did under your management even after you leave. For me and other general managers I’ve spoken with, succession planning was and is a priority and a part of our legacy to the club. Many years ago, as the general manager at The Club at Admirals Cove, I knew after my third year of a five-year contract term that I wanted to expand my club experience to other avenues. I made a personal commitment to recruit and find the right person who could handle the duties of general manager. I began the process more than a year in advance so when I was ready to move on to my next
opportunity and challenges that person would be considered by the board to replace me, which happened exactly as strategically planned. After 12 years as general manager of St. Andrews Country Club in Boca Raton, FL, I decided to step down to pursue other career opportunities and start my consulting business in private clubs. One of my top priorities once again has been succession planning. I started three years ago to find my successor. This has been paramount for me and the club – to have someone prepared to step in and manage the club in the direction established with the board and my leadership team. I felt it was important to leave a solid foundation for continued success long after I left so that my time there as caretaker was viewed as being as responsible by general manager succession planning for the members and the professional team. When I was ready to step down and hand over the reins, it was very evident to our board and the membership that we had the right leader in place to succeed me and ensure a smooth transition. Another example of succession planning is the successful career of a veteran club industry professional, Jay DiPietro who retired a few years ago from Boca West Country Club. Jay set the example for us when after 30 years of leading that club very successfully his succession plan was effective as well. His successor, Matt Linderman, was recruited more than 10 years before to groom him for taking the reins. Many peers of mine in the private club industry all kept wagering on who would be the person most likely to succeed Jay’s role as general manager. We SEE MARTIN - EXECUTIVE COMMITTEE | 97
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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. For more information, phone (623) 322-0773; or visit the RCS website at www.consultingRCS.com
Becoming an Employer of Choice Top concerns for club leaders today are employee recruitment, turnover and lack of qualified managers in the industry. The statistics on turnover are numerous, but most agree that turnover of a position costs 20-30 percent of that person’s first year salary. The Bureau of Labor Statistics indicates turnover in hospitality is as high at six percent per month, or about 73 percent per year. It’s difficult to find consensus on private club turnover rates in 2019, but let’s be conservative and say it is 20 percent (although it is likely closer to 35 percent). For a club that employs 100 people, that’s 20 positions turning over each year. At an average wage of $15/hour, the cost can be close to $100,000 or higher. (This assumes each person works 50 weeks per year at 32 hours per week.) Then consider the impact of having inadequate or ill-matched management: Costs quickly get out of line, revenues lack priority focus and member satisfaction wanes. To make real and lasting improvements, a significant investment must be made to reset the culture, stop turnover and increase employee engagement. If you are spending $100,000 already, why not put some or all of that to good use and invest in becoming an employer of choice for the club’s long-term benefit? Let’s look at ways you can become an employer of choice: Reducing turnover, increasing employee engagement, developing super stars and recruiting top talent. These go hand in hand. Here are a few tips to becoming an employer of choice by keeping employee engagement high: 1. Attract top talent with your company culture. Nearly one in 10 respondents to a CareerBuilder survey about employee turnover said the person they hired didn’t work out because the company did not properly convey its brand or culture to the new hire. 2. Evaluate your benefits. While compensation is important, it’s not the end all of recruiting top talent. How can you provide value to your compensation plan for the market you are targeting? Items such as free music accounts like Spotify (Starbucks offers this), education scholarships or tuition reimbursement, childcare opportunities or allowances, and flexible time are becoming popular add-ons to enhance employment benefits. Some innovative clubs who attract top talent have management teams who alternate weekends off and have realigned their organizational chart to allow for five-day work weeks to foster the pursuit of personal goals. We have to change our thinking on benefits and work schedule if we as an industry are going to become a career of choice. 3. Employee referrals. Your existing top talent pool of employees is your best resource of new employees. Communicate what you are 40
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looking for and have to offer. Then, reward employees for helping you recruit the best of the best. Help your team tell the story of working at your club by setting up an employee recruitment Instagram or Facebook account that they can share with friends and invite them to participate. 4. Deliver value with each interaction and keep the process moving. Employees have more choices than ever before and the most desirable candidates have higher expectations of future employers. Your behavior and attitude throughout the hiring process should reflect and communicate your values if you want to attract top talent. Keep your process fast moving and efficient; if someone is looking for a job, they won’t last long. If you are interested in hiring them, act swiftly. As a job candidate, it’s frustrating to apply for a job and never hear back or receive a delayed response. 5. Prioritize employee engagement. Engagement essentially means that every employee feels appreciated, valued and rewarded for a job well done. Making an investment in human capital by offering learning opportunities is one of the greatest recruiting tools you have. Top talent will view employers who offer opportunities to grow as more than just a job and will naturally be more dedicated and professional. Nurture your staff and give them room to grow and you will not only have engaged employees but will deepen your bench of talent in many ways. These learning opportunities can then be used to create a career growth pathway for internal promotions and improved member satisfaction. Managers are struggling to keep their facilities staffed – it is time to invest in your human capital strategic plan. There’s no time to waste. BR
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TOM NEILL
HISTORICAL COMMITTEE
Tom Neill is president of Private Club Historical (www.ClubHistorical.com). His company creates strategic historical plans, discovers club history, designs historical exhibits, displays, books, and historical videos. He may be reached at (949) 497-6543 or via email: tom@privateclubhistorical.com.
An Anniversary Affair! Make It the Big Deal It Is
Whether it’s your club’s 10th, 25th, 50th or 100th anniversary approaching in the near future, it’s a BIG deal for your club and members. Make sure you maximize this important milestone’s impact by planning ahead – way ahead – for this significant event. When my parents celebrated their 50th wedding anniversary in a joyous party – everyone came out for the party – from immediate family and friends to distant cousins and college buddies. It was a fabulously successful night of good food, dancing, and reminiscing. However, no one was aware of the mad scramble behind the scenes just days before the big event. What was the problem? Well, the easy part of planning was arranging the venue and catering. It was the collecting and presenting of the memories, photos and ephemera that took longer than we expected in spite of our careful planning. Furthermore, as word of the celebration spread, we were overwhelmed with even more people hoping to add their memories to our displays and video. While we were excited to have such a treasure trove of artifacts and anecdotes, the last-minute push was stressful and exhausting. The lesson learned? Start planning early – even earlier than you think. The same holds true for a club’s major anniversaries. Like a wedding anniversary, club anniversaries are significant for marking a club’s years of successful union with its members. For members, it offers a sense of pride for being part of this legacy while honoring core traditions and possibly creating new ones. As such, they carry a hefty workload of preparation, so it’s never too early to start planning.
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A good way to prepare for an anniversary is to start by focusing on the consolidation of your club’s historic narrative and organizing your celebratory artifacts. Assessing your club’s important artifacts and historical documents, collating and preparing them for display early will save you effort later on and help drum up enthusiasm as you start to exhibit your history in club common areas. Getting the word out early amongst club members and throughout the local community can help broaden both interest and involvement – and more importantly can add more potential sources of artifacts, memorabilia and memories for your anniversary collections. Start video interviewing club members now, including founders or founding families so there is a bank of resources to pull from for a celebratory video. Anniversary videos are excellent vehicles for show casing your club’s story, added to your website, played at your anniversary gala and as a keepsake for members. Remember, a club anniversary can be celebrated all year long, so there is great potential for merchandising anniversary specific merchandise, including caps, golf shirts and other branded clothing. One prized merchandising item is a celebratory anniversary book presented in a beautiful, glossy, colorful, hardbound book. Drawing on the work already put into collecting artifacts and creating historic displays, an anniversary book is an opportunity for your club members to take home a bit of the club’s grand legacy. So, here’s to your upcoming anniversary! With thoughtful planning, scheduling and forethought, it can surely be an affair to remember! B R
MORE THAN 80 EDUCATIONAL, NETWORKING, AND CAREER-ENHANCING OPPORTUNITIES
Grapevine, TX ★ February 8–12 ★ REGISTER TODAY! cmaa.org/conference ★
BILL BOOTHE
TECHNOLOGY PERSPECTIVE
Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment. During his 30 years in the club industry Bill has assisted more than 400 private clubs and communities with the planning, evaluation, selection, implementation and reengineering of computer technology in all facets of their operations. Bill can be reached at bboothe@boothegroup.com.
Club Software – A 20-Year Retrospective Since this is the BoardRoom’s ‘State of the Industry’ edition, it’s interesting to look back to see how the club software industry has progressed and changed during the past 20 years. In 1999 when I was with RSM, we published information on 29 club management membership and accounting systems (some included their own F&B POS) and 10 standalone F&B POS systems. Here’s a little walk through memory lane – from 1999. 29 CLUB MEMBERSHIP AND ACCOUNTING SYSTEMS
Abacus 21, Aces Software, American Ziegler (AZI), C.H.I.T.S. (Sampson & Associates), Clubware, Club Data, Club Software, Club Systems Group, ClubTec, Computer Golf Software, Country Club Systems, Crescent Systems, Diamond Management Systems, Fairway Systems, Flex Screen, Gary Jonas Computing, Golf Management Systems, Handicomp, Integrated Business Systems (IBS), Majestic Software, MTE, OBI Club Software, Par Business Systems, Priority Club Systems, Pro-Shopkeeper, Smyth Systems, TA Consulting, Vanguard Systems, Watson, Steach. 10 STANDALONE F&B POS SYSTEMS
Aloha, Dine-Amics, HIS, Micros, NCR, POSitouch, Remanco, Restaurant Manager, Sabal, Squirrel. In 1999, evaluating and selecting systems for private clubs involved choosing among almost 40 contenders. Today, we’re down to about a half dozen. But that hasn’t made the selection process any easier! Here’s why. The remaining systems now incorporate virtually every function needed by a club – membership, accounting, POS (F&B and retail), inventory, lodging, website, mobile app, blast email - you name it, they have it. In the “old days”, if you liked one accounting system but another POS system, you simply bought your favorites and interfaced them. Of course, interfacing presented a host of challenges, but clubs felt that they were able to take a “best of breed” approach to maximize their systems capabilities. Today, you’re likely to get almost everything from a single provider. That presents its own challenges – mainly balancing the various pros and cons from one system to the next. Good membership and accounting, weak POS. Good website and mobile app, weak accounting. Good this, weak that. Plus, today’s selections lock a club in to an enterprise commitment. No more replacing a module or two with something third-party. It’s all or nothing with today’s software suites. 44
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What’s the point of this 20-year retrospective? Just this: If you’re thinking of replacing your club’s enterprise software suite, make sure that you clearly understand where your incumbent system’s weaknesses are – and that the new suite you’re favoring doesn’t bring with it some serious shortcomings in other important areas. Jumping from the frying pan into the fire isn’t a great selection strategy. So, here are a few pointers to consider when evaluating new systems: 1. Don’t get wrapped up in “bells and whistles” features. Make sure the bread and butter features that make up 90 percent of the system are solid. Then circle back to consider the cool stuff. 2. Don’t assume that all systems run reliably and have good customer support. Check around to make sure. 3. Get everyone involved in the selection process. Don’t be the lone wolf out scouting for a new system. If things go sideways, you’ll still be the lone wolf. 4. Don’t assume that your old system has to go just because it’s old. Consider reengineering before you “throw the baby out with the bath water,” – That’s a saying that goes way back to the 1500s and is still applicable today. BR
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JOHN R. EMBREE John Embree is CEO at the United States Professional Tennis Association and can be reached via email: john.embree@uspta.org.
A New Initiative to Grow the Game What do we need to do to keep growing the game? This past year presented the tennis industry with many reasons for optimism, but equally as many areas for improvement. According to figures just released by Tennis Industry Association, total tennis participation in 2018 is up slightly from 2017, though growth is not universal. The total tennis economy also grew, but equipment sales continued to decline. First, it’s important to identify different areas of growth and what’s driving them. According to TIA, facility and coach revenue, media and television and advertising revenue and pro tour sponsorship all grew in 2018. Youth participation is up slightly to 4.64 million, and core youth participation, defined as those that play 10-plus times per year, is up 6.7 percent. Total tennis participation is 17.84 million and total core players grew 1.6 percent to 9.67 million. Numbers for the 2019 U.S. Open are also up. TV ratings on ESPN for the first day were up 50 percent from last year. The women’s singles final between Serena Williams and Bianca Andreescu drew a 2.7 overnight rating, up 13 percent from 2018. The men’s final overnight TV rating was up 33 percent from last year to its highest level since 2015. The 2019 U.S. Open also set an all-time attendance record of over 850,000 over three weeks. These are positive signs. But to properly assess the state of the industry, we must also recognize areas of decline and what we must do to reverse those trends. Though core player numbers are up slightly from 2017, there has been an overall industry trend away from core participation towards more casual play since 2009. This is concerning because core players account for roughly 70 percent of consumer expenditures. Indeed, sales of racquets and balls continued to decline in 2018, particularly in the youth sector. We are encouraged by the 4.58 million new players tennis attracted in 2018. But for years, tennis has suffered from “leaky bucket syn-
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drome”, and last year, 4.42 million players stopped playing. So what do we do? How do we plug the holes in the bucket? Existing grassroots initiatives such as Net Generation, League Tennis and Cardio Tennis help. Net Generation grew over 600 percent from 2016 and now connects over 1.3 million school children to programs. Cardio Tennis participation is up over 200 percent since 2008. Tennis is one of few sports with positive participation rates through players’ high school years. And yet, the bucket continues to leak. Industry leaders have gathered at three tennis industry summits over the last year with all key stakeholders at the table. The one resounding theme that surfaced among all participants is that we need a true “pied piper” in every community to get more people in the game. We need to increase the number of tennis professionals while enhancing their education. The consumer experience on court must be improved or people will leave the game – thus, the leaky bucket. The result is the tennis army initiative. The goal is to certify 1,500 providers by the end of 2020 to deliver top quality tennis instruction and programming to beginner youths and entry level adults. The USTA will track and monitor progress, and by holding providers to USPTA standards, we will ensure that players have a positive experience and keep coming back for more. There is plenty of room for growth. A 2019 Physical Activity Council study shows there are 14 million people who consider themselves players but haven’t played in the last year and another 16 million that are interested in playing. As the leaders of the tennis industry, it is ultimately our responsibility to ensure the wellbeing and future of our sport. However, if we all – coaches, parents, even fellow players – take ownership of this responsibility, we should not fail. B R
DEMO DAY: LAKE NONA EXPERIENCE TUESDAY, JANUARY 21 USTA National Campus, Lake Nona
EXHIBITS & TOM CONFERENCE WEDNESDAY, JANUARY 22 – FRIDAY, JANUARY 24 Orange County Convention Center
ORLANDO, FLORIDA CO-LOCATED WITH THE PGA MERCHANDISE SHOW
SUPPORTED BY:
SALLY MILANO Managing Editor at (USTA) United States Tennis Association
CASE STUDY
Net Generation Enables More Than Just Tennis Growth Miljana Jocic moved to the U.S. from Serbia in 2007 to attend college at the University of South Carolina, where she competed on the women’s tennis team. For the past five years, she has served as the Junior Development Director at Five Star Tennis Center, a tennis club located in Chicago, where she has utilized Net Generation with her students. I love coaching youth players. I believe in teaching the kids character, along with developing their tennis skills. To me, that it is the best part of being a tennis professional – looking at the bigger picture and impacting a young athlete to develop, first as a person and then as a player. Net Generation has been instrumental in helping me do just that. It has positively influenced my coaching on the court, helped in training the pros at our club and given us even more consistency in developing our lesson plans, while also allowing me to be more involved in my community. There are many things that I love about Net Generation, and at the top of the list is the curriculum that is available for providers. The curriculum has been a great tool for the coaches in our program. It is well structured, provides helpful pictures and videos
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and uses “kid-friendly” language. Our players love the names of the games and drills and have more fun on court because of that. It’s great to see that, across all our courts, classes look the same because pros follow the lesson plans. I am a big believer in community tennis. Tennis has given me so much, and I would love to pass on my passion for the sport to young athletes, not only at tennis clubs but also in schools. Net Generation is different, not only because it provides the great curriculum but also because it exposes our young players to the right-sized equipment so that they can enjoy the game from the very beginning of their tennis careers. Because of Net Generation, my program and our players were able to experience a once-in-a-lifetime opportunity. Last year, 24 tennis players from the Chicago area flew to New York City to participate in an on-court demo powered by Net Generation at the US Open. While we were there, our kids had the pleasure to play in Arthur Ashe Stadium. Wow! We had all levels of players there. Some were more experienced and had been dreaming about a moment like this for long time, while others were completely new to the game and, because of this experience, fell in love with the sport even more. They came home, wanted to practice more and started watching tennis tournaments as often as they could. Those who didn’t go last year saw the pictures and heard about the trip from the players who went, and they kept asking me when we could go again so that they could join in on the fun, as well. Because of Net Generation, I was able to give them the answer they were looking for, as we were part of the on-court demo again this year. It was such an exciting moment for the players and coaches and an experience that everyone who is part of our program will never forget. BR
JONATHAN GOLD
EXECUTIVE COMMITTEE
Jonathan Gold, PGA is a PGA Career Services Consultant serving the Metropolitan, New Jersey and Philadelphia PGA sections. He can be reached at (516) 567-6918 or jgold@pgahq.com
Does Your Club Have Asset Managers? Do you know what the value of a member is worth to your club? I promise, by the end of this article you will think differently about a member, their membership in whole and the importance of the staff members who provide above and beyond service. It is easy to think that a member is only worth their dues and any additional annual spend at a club. But what is their true value? Members can bring in additional members, your future revenue, and be the glue that ties their friends and acquaintances to the club. To see what is going on, we need to strip it down to its simplest form and view the framework of a member as your biggest asset. Your club is filled with hundreds of assets. Each asset is worth a certain value and collectively makes for a very high figure. This collective sum likely rivals and exceeds the portfolios of asset managers outside of the industry. On average, a club member roughly retains their membership for 10 years. For the sake of simplicity, let’s say they spend $5,000 a year on discretionary items and services, initiation is set at $20,000 and their membership dues are $10,000 per year. Over its term, this asset is now worth $170,000.
portfolio by likely cutting the attrition rate in half? Not to mention all of the discretionary revenue gained from the extra visits to the club. Through education and involvement with the PGA of America, PGA professionals and industry professionals know the importance of seeking out the members who are not engaged with golf to make it a priority to have ALL members participate. This is one of many examples where if the asset managers rally behind certain proven member retention practices, the club’s member portfolio will have a higher value in the coming years.
Empower your executive level managers to own their portfolio and make the initiative to retain 100 percent of the membership. It is easy to try new things with the goal of attracting new members, but at what cost? For the health of the club, it is better to reduce the loss at all costs. Empower your asset managers as they are by far the most important entity at the club. A club with 300 members is now being managed as a club with $51,000,000 in net assets. Yes, $51,000,000 in net assets. Take a second and run the math with the membership count at your club. The number, although seemingly high is an accurate representation of value. It also becomes evident that effective managers are not concerned with driving new members, rather how to manage and reduce the amount of attrition to zero. According to Global Report, the best asset managers combine practical experience with solid financial and analytical skills as well as the ability to communicate and build consensus. The best in class do not get caught up with membership drives and new formulas to attract members. The best asset managers focus on services and measures put in place to make sure their members return and see their return on investment in the club. Engagement studies, specifically at clubs where golf is offered as an amenity prove to be rather interesting. A member that is not engaged in golf specific instruction programming is about 11 percent likely to not rejoin the club whereas a member that is engaged in golf instruction is 2.3 percent likely to not rejoin. This is a significant difference. Can you imagine if every member at the club was actively engaged in a golf instruction program? How would that effect the total value of the 52
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To summarize, the collective value of the membership is likely much higher than perceived and goes unnoticed. The executive level managers or asset managers effectively have the most important position at the club in terms of stability. Empower your executive level managers to own their portfolio and make the initiative to retain 100 percent of the membership. It is easy to try new things with the goal of attracting new members, but at what cost? For the health of the club, it is better to reduce the loss at all costs. Empower your asset managers as they are by far the most important entity at the club. B R
SUSAN GREENE
MEMBERSHIP COMMITTEE
Susan Greene is 32-year veteran in the private club business. A master certified membership professional, she is a former national president of PCMA (Professional Club Marketing Association), vice president of membership and general manager. She is often called upon as an industry speaker and serves as the director of membership and marketing for The Oaks Club, Osprey, FL.
Making Cents of Prospective Member Needs and Requests Many things have been written and research conducted on the generational division of our prospective member’s needs and what amenities our clubs need to be prepared to offer based on our targeted age demographic. We have identified the following groups: • New Silent Generation - 19 years of age and under (49 percent Hispanic) • Millennials – 20 years of age to 39 • Generation X – 40 years of age to 54 • Baby Boomers – 55 years of age to 73 • Silent Generation – 74 years of age to 94 • G.I. Generation – over 94 Now that we have identified the groups, our charge is to be sure, based on their needs, concerns, and passions that our club is programming to meet those needs. Face it, most clubs have representation in their prospect pool from each group. Let’s break it down. Millennials: We know they are socially conscious and have an entrepreneurial spirit, and 247 percent are more likely to be influenced by blogs, and they love to participate (the reason for all those participation trophies). As the membership committee, work with the house and social committees to offer: 1. Neighborhood projects 2. Benefits to make life easier like Take Out, Grab and Go, or charging stations 3. Organic menu items 4. Have blogs that they can contribute to 5. Create an Instagram Club within the club 6. Adventure-related events Generation X: This group of prospects like schedules and work in teams. They receive all their information via the ‘net. They appreciate special benefits and want to be praised. As the membership committee, work with fitness, sports and communications to offer: 1. Electronic membership information 2. Regular weekly sports schedules 3. Create “peoples’ committees” that work on specific board projects and work in teams 4. Show them your personalized email campaigns 5. Member versus non-member pricing 6. Recognition programs Baby Boomers: his group of prospects value working hard, climbing the corporate ladder to success and working as long as they can. Baby Boomers interact more faceto-face and still value that mode of communication. As the membership committee, work with your membership director, member relations director and house committees to offer: 1. TED talk sessions 2. Great decision groups 3. Wine clubs 54
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4. 5. 6. 7.
Points programs Classes for technology Physical therapy Allow for credit card usage (points programs) 8. Fashion your tour with emphasis on the quality of amenities 9. Mailed invitations to join Silent Generation: This group of prospects exhibits strong loyalty to their personal beliefs and possess a strong work ethic. Born between 1925 and 1945, seniors are often forgotten but owing to their significance and profound contributions, the silent generation is not so silent at all. As the membership committee, work with your member relations and events coordinators to offer: 1. Book clubs 2. Big band entertainment 3. Mentoring programs 4. Committee work 5. Get to know your fellow member bio section in your newsletter 6. Charity programs G.I. Generation: Although this group of prospects may be more prevalent in Florida, they seem to have very similar values as the Millennials (what’s old is new again, so to speak). As the membership committee, work with your board to offer: 1. Community involvement 2. Thorough explanation of debt 3. What your club has for teams 4. Civic endeavors (health, education, equality) If you work to be sure your prospects are aware of the values your club offers, their ultimate pride in belonging will increase and that just makes cents. BR
TED ROBINSON Ted Robinson is a partner with Private Club Associates and can be reached at (478) 741 7996 or via email: tcr@privateclubassociates.com
MEMBERSHIP COMMITTEE
Starting from Scratch - Part VI
Checklist for The New Membership Director’s Training Plan “Embrace the fundamentals like the closest of friends, for they will be the foundation of your future success.” — Chris Murray There is much to learn about the onboarding process for club staff members and fundamentals for the membership sales director are among them. This membership marketing “Starting from Scratch” series describes hiring and training a new membership director. Part V specifically dealt with training and suggested five initial homework assignments: 1) Learning “who your club is”, the vision, mission and brand position statements, 2) Understanding and following the membership director’s job description and membership marketing SOP, 3) Memorizing the membership products including the dues and fee schedule, 4) Completing a competitive market analysis (CMA) (now and every six months), and 5) Learning the club’s software and CRM (customer relationship management) programs. Here is a checklist of more fundamentals for the membership sales director’s training. Each step should be taken with a focus on uncovering any available source to help you find out “Where is the next prospective member?” • Review past year’s minute books (board and committees) • Review current and past newsletters, menus, club events, and programming • Review past year’s membership programming and collaterals: Club profile (brochure). Update the profile if it is out of date • Review all club documents: Membership application/agreement, membership plan, bylaws and rules and regulations • Review past year’s membership reports – learn how to use the membership report and understand the dynamics of attrition and admission rates • Review the member files • Review the membership department budget; learn the line item definitions • Learn the profile of the members
• • • • • • • • • • • • • •
Create and practice a club tour and presentation Create and practice the club’s features, advantages, and benefits phrasing Create and practice overcoming objections to joining the club Make appointments to visit board and committee members in their offices Schedule an introduction mixer to meet the members Review the prospect (CRM) file. Determine the status (in the pipeline) of each prospective member Review, revise the annual membership plan. Prepare a prospecting plan, and identify major targets Prepare a pin map to show where members live; where members work Design an email marketing plan Design a social media plan Prepare the weekly status report for the GM every Friday Plan next week’s activities Update the membership report every day; provide the completed monthly report on the first working day of each month Don’t be afraid to “Call for Help.” B R
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BoardRoom magazine Recognizes the Private Club Presidents of the Year By Meghan Thibault BoardRoom magazine annually recognizes the world’s top private club presidents, captains and chairs as Private Club Presidents of the Year, for their outstanding work, their understanding of the industry, and role and responsibilities of the club’s board of directors. In this continuing series, BoardRoom introduces five of the top 25 presidents for 2018. The Distinguished Club President was featured in the January/February issue. Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions. This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world. These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working, effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work. Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan. A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members. Congratulations to these outstanding private club board presidents.
TOP PRIVATE CLUB PRESIDENTS SPONSORS
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DR. JOSH WEISS, PRESIDENT | FOUR SEASONS GOLF AND SPORTS CLUB | DALLAS, TEXAS
DR. JOSH WEISS, PRESIDENT
JIM KERN, GM
Dr. Josh Weiss, a passionate and dynamic board member, cares deeply about his fellow members at the Four Seasons Golf and Sports Club in Dallas. Texas. Despite a busy schedule as one of the top physicians in the Dallas-Fort Worth area and a busy home life, Dr. Weiss’ commitment to the club is evidenced by his service and leadership on several committees and the board of governors. Under his leadership, the club developed a longterm strategic plan and established a new vision and mission statement for the club, which have served as a springboard for the club’s recent record-setting success. The club’s membership, under his leadership, has grown by 475 new members in just a year. The membership now exceeds 2,200, with a member population
of more than 5,000. The increase in member engagement has been even more impressive. Overall, member attendance at club functions has increased more than 300 percent under Weiss’ tenure. Member survey results are the highest in the 37-year history of the club, and members are spending more time at the club and enjoying a higher quality and diversity of events and programming. The Four Seasons management works very closely with the board and club governance in developing programming and events. Dr. Weiss took the lead in doubling the club’s programming, with a robust annual calendar featuring more than 100 special events, and 72 group exercise classes now being offered every week in the club’s 100,000 square feet fitness facility. “Josh is an outstanding executive leader and strategist who values building strong, trustworthy teams and alliances while creating an atmosphere for them to innovate and deliver superior results for all stakeholders at the club and he does this with the highest integrity,” said Jim Kern, the club’s general manager. Dr. Weiss himself is deeply engaged and tirelessly attends meetings and participates in the club’s events. His leadership has inspired dozens of other members to get involved through participation, attendance and service on committees, and on the board of governors. Dr. Weiss can frequently be seen enjoying golf, fitness and family dinners at the club, where he’s been a member since 2008. A Houston native, Dr. Weiss graduated from the University of Texas in Austin and completed his M.D. at the University of Texas Southwestern Medical Center. He completed a residency in Obstetrics and Gynecology at Methodist Medical Center in Dallas, and a fellowship in Maternal-Fetal Medicine at Columbia Presbyterian Hospital in New York City. Dr. Weiss has been in private practice in Dallas since 2003, where he lives with his wife Anne of 22 years, along with their two teenage boys. B R
ANNE WILLCOXON, PRESIDENT | MORAGA COUNTRY CLUB | MORAGA, CA
ANNE WILLCOXON, PRESIDENT
RON HAAS, GM/COO
An active committee member for many years, Anne Willcoxon joined the board of Moraga Country Club (MCC) with a broad perspective of club operations and an understanding of the needs of an increasingly multi-generational membership. During her tenure, Willcoxon led a revision of the club’s strategic plan and expanded it to incorporate plans for the golf course and the homeowners’ association. Under Willcoxon’s direction, the club invested in staffing and materials, improving the club’s service standards and social programs. She advocated for pay increases to help keep the club competitive. With an influx of young families in the community, Willcoxon 58
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pioneered new social and dining programs to satisfy the evolving membership. These efforts garnered tremendously positive feedback and appreciation from members. A new tennis and recreation facility has been under development through Willcoxon’s tenure. Apart from tennis, it will also house fitness, casual dining, a grab n’ go food and beverage outlet, a kids’ club and space for teenagers. Outside seating areas with fire pits, bocce and pickleball courts were thoughtfully designed to offer a beautiful, campus-style space to appeal to all generations. Willcoxon deftly handled sensitive issues with homeowners, members, staff and board members alike. “What sets Anne apart from others is her exceptional style of communication that has evolved out of a dynamic environment that includes dealing with a homeowners’ association. This becomes tricky, personal and very emotional,” said Ron Haas, the club’s GM/COO. As a leader, Willcoxon also ensured that all board members fully understood their role so they can effectively represent the board within the community, conveying a clear and consistent message to the committees that they chair. “Anne has a way of relaying messages that people are comfortable with and understand. She is very compassionate and at the same time willing to work with the member to come up with solutions,” continued Haas. “Her exceptional skill of communicating to the community and the club makes her the ideal partner to both the membership and the operation.” Willcoxon spearheaded a coffee table book that celebrates the history of the Town of Moraga and the club’s long-standing place in the community. The book commemorated the club’s 40th anniversary and required hundreds of hours of research and writing. Willcoxon is a retired business manager who studied at UC Berkeley. She has been a committed volunteer for more than 30 years. She lives in Moraga with her husband, Michael. B R
TAD WILLENBROCK, PRESIDENT | GLENMOOR COUNTRY CLUB | CHERRY HILL VILLAGE, CO Tad Willenbrock and his wife, Betsi, have been members at Glenmoor Country Club (GCC) since 1997. Willenbrock’s dedication and commitment to GCC is evidenced by his long-standing participation in club leadership. He has chaired the club’s golf committee, the member-guest committee, and served on the board of directors from 2002 through 2004, in addition to serving as board presiTAD WILLENBROCK, PRESIDENT dent throughout 2018. Early in Willenbrock’s term as president, the club emphasized improving the member experience in The Grill Room, the club’s main dining room, with a focus on service and the quality of menu selections. These initiatives were measured by encouraging, recording and tracking member comments, resulting in a boost in positive (or neutral) member feedback from 83 percent to 94 percent. In 2006, GCC embraced the idea of being a family-oriented club with a great social environment. Since then, other clubs in Colorado have followed suit. “Glenmoor decided to become the best family-oriented and social club in the area while staying focused on the club’s Pete Dye-designed golf course. The staff, general manager and board
have consistently worked to ensure our offerings meet the needs of our members. The members are regularly surveyed to determine their priorities. From this information the club’s direction and projects continually evolve,” Willenbrock expressed. Willenbrock recognized the need for a strategic plan that could once again set the club on a path to another decade of continued prosperity, operating under a new a strategic vision. He empowered the club’s planning and projects committees to move forward with a $3 million pool and patio renovation project that had previously been stalled. Planning is also underway on the next phase of a clubhouse renovation. These projects are expected to position the club for years of success. Tad built a trust with staff and members to act in the club’s best interest without regard for external pressures or personal gain, while possessing a genuine passion for Glenmoor as one of the most exclusive clubs in the Denver area and state. With a degree in Finance from the University of Colorado, Tad completed work at the Wharton School of Business at the University of Pennsylvania to obtain his Certified Investment Management Analyst designation in 2003. He is currently Senior vice president of Wealth Management with The Willenbrock Group of UBS Financial Advisors and was recognized by Forbes as a Best-inState Wealth Advisor in 2018. He and his wife Betsi have two adult sons, R.C. and Nick. B R
JOHN YOUNG, PRESIDENT | MONTEREY PENINSULA COUNTRY CLUB | PEBBLE BEACH, CA
JOHN YOUNG , PRESIDENT
J.J. WEST, GM
In 2018, Monterey Peninsula Country Club (MPCC) experienced a year of extraordinary change. A multi-million-dollar clubhouse renovation project and the club’s most extensive management changeover in decades led to a significant cultural shift at the club. During the 2018 governance year, John Young made a positive impact as president. Young rejoined the board for a single year as president because of an unexpected shuffle in directors early in 2018. He was quick to embrace the pace of change and champion the changes to the club’s membership, providing transparency in communication and keeping members apprised of challenges and opportunities. The club’s general manager of 28 years along with nearly every executive manager had announced their retirement, resulting in the club’s loss of decades of
experience and institutional knowledge. Chosen for his extensive experience in human resources and organizational development, Young helped navigate the complex world of executive contracts. The clubhouse renovation project was completed just in time for the summer season, when the refreshed dining room and social venues were often filled to capacity. A trailblazing program member benefits program spurred renewed interest that offered low pricing on food and beverage throughout the club. Camaraderie among members skyrocketed, resulting in consistent year-over-year growth in member satisfaction. A fresh management team with new perspectives also helped bridge the gap in building relationships between membership and staff, as Young championed the idea that people are at the heart of every program, capital project, policy and event. To demonstrate this, Young championed an inaugural “Employee Appreciation Day.” The event closed the club to members to facilitate training, development and team-building for the club’s 225 employees. “He personally commenced the meeting, setting the tone of sincerity, gratitude and inspiration. This tone expanded and overflowed into subsequent days, with employees and members alike creating a feedback loop of appreciation and encouragement,” noted J.J. West, the club’s new general manager. Young’s leadership style was one of inclusion, West shared. “He eagerly shared the process of governance with all stakeholders and provided tools and encouragement for everyone to participate.” This collaborative style lives on today, allowing the club to operate at the highest level of efficiency. Young earned an MA from the University of Scotland, and later, an MS in Organizational Behavior. He served for 22 years as executive vice president of Four Seasons Hotels and Resorts, where he carried global responsibility for the evolution of the human resources functions. He and his wife Diane are active in several golf associations. Young also provides his musical talents along with other members in “The Mulligans” – MPCC’s rock band. B R
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MELISSA LOW
LEGISLATIVE COMMITTEE
Melissa Low, CAE, is the senior director, Communications & Advocacy, for the Club Management Association of America. For the latest information on these and other issues affecting the club industry, please visit CMAA’s Legislative Report blog at www.cmaa.org/legislative.aspx
The Latest on Minimum Wage, the Cadillac Tax, OSHA Reporting Requirements and Overtime Minimum Wage Increases Take Effect: July 1 was a big day as the minimum wage increased in 22 different states and jurisdictions across the country. Eight of the 22 increases met or exceeded $14 per hour. San Francisco and Berkeley, CA, have increased to $15.59, the highest minimum wage in the country. Washington, DC increased to $14, and the state of New Jersey increased incrementally to $10, ultimately increasing to $15 by 2024. The House of Representatives passed HR 582, the Raise the Wage Act (HR 582) on July 18. The measure would set the minimum wage at $15 within six years of passage and create an automatic update annually based on the median hourly wage of all employees as determined by the Bureau of Labor Statistics. Further, it would ultimately eliminate the existing $2.13 minimum wage for tipped employees by increasing that wage annually by $1.50 until it meets the standard federal minimum wage. However, it is unlikely to be considered in the Senate. The Senate version of the bill, S. 150, has not been considered since its introduction and assignment to the Committee on Health, Education, Labor, and Pension. The federal minimum wage was last increased in 2009. House Repeals Cadillac Tax: On July 17, the House of Representatives passed HR 748, the Middle Class Health Benefits Tax Repeal Act of 2019, to repeal the Cadillac Tax. The measure passed 419-6 with bipartisan support. The High Cost Employer-Sponsored Health Coverage Excise Tax, more commonly referred to as the Cadillac Tax, was slated to become effective in 2018 but has been delayed twice. Under this provision of the Affordable Care Act, if the total premium cost of the plan provided to an employee exceeds a specific dollar limit, the excess is subject to a 40 percent excise tax. A 2015 study by the Kaiser Family Foundation projected that 26 percent of U.S. employers would have been subject to this tax based on current benefit levels. Although it never officially became effective, it is estimated that it would reduce employee benefits and transfer the cost of insurance to employees through increased deductibles, reduced covered services, use of private exchanges, and the reduction or elimination of Flexible Spending Accounts. The bill has been referred to the Senate for further consideration. OSHA Provides Second Chance for Reporting: On August 9, OSHA announced guidance for employers who may have missed the designated March reporting deadline. Clubs with 250 or more employees are required to submit their Form 300A, Summary of Work-Related Injuries and Illnesses, annually. Year 2018 data should have been submitted earlier this year in March. Safety Consultant Alan Achatz, CCM, CHE, shared, “It’s not often OSHA gives businesses a second chance to share required regulatory information. If 60
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you are a business with over 250 employees and you have not submitted your OSHA 300A logs to OSHA for 2018, here’s your opportunity!” Access the OSHA portal at https:// www.osha.gov/injuryreporting/. For 2019 information, mark your calendars for submission no later than March 2, 2020. Coming Soon: Final Overtime Rules: In August, the Department of Labor (DOL) advanced the next step of the final rulemaking process for the changes to the overtime regulations of the Fair Labor Standards Act. Earlier this year, the DOL accepted public comment on its proposed final rule. Under the proposed rule, the minimum salary required for an employee to qualify for exemption increased from the currently enforced level of $455 to $679 per week, the equivalent to $35,308 per year. The proposal increased the total annual compensation requirement for “highly compensated employees” (HCE) from $100,000 to $147,414 per year. Unlike the 2016 final rule, it did not include a specific automatic update provision. Instead, it included a commitment to periodically review and update the salary threshold. In language that mirrors the 2016 final rule, employers will be allowed to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the standard salary level. The proposed rule does not include any changes to the job duties test. The final rule is expected to be released in the final quarter of the year. BR
ConcertGolf
Partners
club is now debt-free, all of our ‘wish list’ capital “Our projects are being completed and we will never again have assessments. Members don’t want to be managers; they just want to enjoy the club. Frankly, this is the best thing that could have happened for our club.
”
- Joe Donato, Country Club at Woodmore, Washington, D.C.
Preserve. Enhance. Thrive. Learn more at www.concertgolfpartners.com
BRUCE BARILLA Bruce Barilla is president of Locker Room Consulting: www.lrcgolf.com
HOUSE COMMITTEE
Checklist for A Better Locker Room Check off the suggestions of your choice. The changes will be easily noticed and result in a more satisfying locker room experience for the members and guests, and they’ll boost staff morale. __ Have a prompt on the main phone line for both the men’s and women’s locker rooms with voice mail greeting recorded by the locker room manager.
__ Place a plastic spray pump bottle with eucalyptus oil in the steam room. __ Install an ice maker with cups and water near the steam/ sauna/whirlpool.
__ Provide business cards for the locker room manager with their business cell phone number and email address.
__ Introduce a beverage treat unique to the club such as Green River floats.
__ Hang photos of each locker room staffer with name and year when hired.
__ Try an honor bar for soft drinks and sport drinks in plastic bottles.
__ Have an open greeting counter as part of the shoe shine room.
__ Provide coffee, juice and sweet rolls on busy days.
__ Install three flat screen TVs near the greeting counter with channels on the weather, stock market and sports.
__ Remove water limiters from showerheads or replace old clogged showerheads with new ones having a full thick wide spray pattern.
__ Make available a small glass door refrigerator for chilled, damp, scented face towels with a disposal can nearby. __ Offer clear drawstring type shoe bags with club logo to easily recognize shoes and solid color for laundry. __ Provide daily newspapers and magazines. __ Locate conveniently a computer internet work station. __ Engrave the first and last initial of each member on their locker knob. __ Personalize locker name plates for club champions and board members. __ Have guest only lockers near the shoe shine room with name plates. __ Make available both terry cloth and quality c-fold paper towels by the sinks. __ Install an amenity shelf above the sinks the width of the counter, plus shelves between the mirrors and on any side walls. __ Have separate drop holes in the counter for cloth and trash. __ Purchase a hot lather machine. __ Eliminate Barbicide only and have separate containers for clean dry combs and used. __ Encourage the attendant to ask the members their amenity brand preferences. __ Add an amenity shelf to dressing mirrors for grooming stations along with towel stations. __ Adjust lighting for ambience.
__ Be sure showers in women’s locker room have a leg shaving amenities shelf. __ Update shower amenities to American Crew, Jack Black, Tresemme, Gilchrist & Soames or Essential Amenities. __ Have matching scent hand soap and lotion like that of the shampoo, conditioner and body wash. __ Consider installing custom three-unit logo pump bottles from Ready Care in each shower. __ Provide wash cloths and matching scent single use bars of soap. __ Photograph each amenity setup as a reminder for new staff and housekeeping. __ Offer logo robes for sale with monogramming available and rubber shower slippers. __ Sell the shower and sink amenities in the pro shop. __ Introduce a welcome gift program for guests featuring travel size amenities with club logo. __ Meet informally with the locker room team weekly to ask their thoughts and concerns. __ Install no-touch hand sanitizers, Freshends and automatic air fresheners in each water closet. __ Schedule staff so at least one attendant is on duty throughout the day. __ Conduct continuing education programs and have staff visit other locker rooms in the area.
__ Have a dozen or more colognes in a recessed shelf unit.
__ Include a barber shop, salon, massage room and fitness area in long range renovation plans.
__ Do a member survey and follow up their ideas, suggestions, likes and dislikes.
__ Be prepared with loaner shirts and loaner golf shoes.
__ Celebrate member birthdays with a gift from the locker room staff. 62
__ Purchase a large glass door refrigerator to be located by the steam/sauna/whirlpool for chilled dry bath towels.
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__ Show the history of the club with display cases and photographs on empty wall space. B R
Real World Challenges. Proven Solutions.
As a division of TroonŽ, True Club Solutions (TCS) is the only advisory services firm that draws upon decades of experience, currently serving 465+ clubs around the globe. As an alternative to Troon’s professional management solutions, TCS engagements benefit our clients by tapping into the depth and breadth of expertise from our 15,000+ corporate and field associates to focus on Club specific, shorter term challenges and opportunities.
W W W.T R U E C L U B S O L U T I O N S . C O M | 8 8 8 . 8 2 7. 9 7 7 5
LISA CARROLL
MARK FILIPPO
HOUSE COMMITTEE
Is It Time to Re-Evaluate Dining Hours and Number of Events? In 2016, in most major markets throughout the United States, the average salary for a line cook was $12-$14 per hour. And today? The average pay for a line cook is now $17-$22 per hour. That is a 50 percent increase in just three years! There is a nationwide kitchen labor shortage. “More than a third of [restaurant] operators have job openings that are difficult to fill, with the biggest challenge finding applicants for back-of-the house positions,” according to the National Restaurant Association in its 2019 State of the Restaurant Industry report. The report indicated that recruitment and retention is the number one challenge for 2019. Restaurant and club consultant Mark Filippo and I were recently discussing the increasingly worsening kitchen labor shortage that we’ve both observed. When a club faces a crisis that quickly and negatively affects an entire department, it is no longer just the responsibility of that department manager. Such a drastic increase in compensation is an important issue for the whole club and requires the attention of the general manager and the board of directors. In earlier years when a chef was faced with a temporary labor shortage, everyone in the kitchen added to their existing workload and were able to get the job done. That worked because the kitchen eventually returned to normal staffing levels and team members who had previously worked extra days could now take extra time off.
Filippo, who provides consulting for both restaurants and clubs, recommends that clubs consider borrowing ideas from the restaurant industry with a “less is more” approach. Many restaurants have started closing for lunch early in the week or completely if warranted. Even some Starbucks locations have cut their hours. They look at metrics to see what is functional and adjust accordingly. They consider the high cost of labor versus the amount of business they are doing in those time slots. Consider that. The second largest food company in the world is adjusting hours based on the availability of labor and cost. Do you have more than one restaurant open at the same time? Is it time to look at the numbers and decide if it really makes sense, from a labor cost
There are so many options outside the club industry that offer executive chefs and cooks better hours including R&D, food or equipment sales, teaching, continuing care retirement communities, contract work, etc. These industries don’t demand 60-80-plus work weeks and provide more balance and quality of life. When clubs extend their seasons, number of events and dining venues, the chef and kitchen staff never have a chance to recover. This leads to “kitchen burnout” – overworked kitchen staff members that don’t get a day off in an extended season. The younger generation sees this and decides, after several years of working in the kitchen, to reposition themselves in another area of the club or in many cases leave the industry entirely. How do we address this very serious issue? Hiring more people is not the answer because finding people is hard to come by. In fact, there isn’t one universal answer. Each club is unique and must consider changes that could affect the member experience. 64
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perspective, to have a restaurant open for lunch or dinner when you only expect 10-20 diners that evening? Traditionally, clubs are open no matter what is forecasted for covers. But it is time to give serious thought to the business side of this business! If we continue to offer too many events or a lunch or dinner service that
isn’t well attended, the existing staff will have to work longer hours and labor costs skyrocket. Mark and I spoke together at a recent CMAA chapter workshop and heard clubhouse managers and assistant general managers talking about having to cover sections of the dining room because there weren’t enough servers available on certain nights. They weren’t assisting as needed… they were actually scheduled to cover a section! It makes it difficult to keep an eye on the whole dining room when you are covering a section, just as it is difficult for an executive chef to watch the whole kitchen when they are working a station on the line. While the use of combi ovens, turbo ovens, sous vide equipment, etc., has helped speed up production, many chefs and cooks are still faced with working 80-90 hours per week. A grueling weekly schedule in the kitchen, coupled with a labor shortage, is frustrating, stressful and defeating. It leads to burnout and good people leaving for better/work life schedules. For the record, we realize many people grew up in a kitchen system where long hours were the norm. We often hear “we did it, why can’t they do it?” The difference today is the elevated demands of the members to have restaurant-quality food and service and those pesky staffing challenges. Clubs can’t afford to churn through and burnout staff. And they should not. There are so many options outside the club industry that offer executive chefs and cooks better hours including
R&D, food or equipment sales, teaching, continuing care retirement communities, contract work, etc. These industries don’t demand 60-80-plus work weeks and provide more balance and quality of life. Danny Meyer and Union Square Hospitality Group focus on their primary stakeholders – employees – first. And consider the words of Sir Richard Branson: “Train people well enough so they can leave; treat them well enough so they don’t want to.” How do we address the current labor market, serve our members and retain good staff? Look at your F&B data. Consider minimizing hours or closing during slow times. Don’t overschedule events – consider your staffing levels. Don’t expect any of your staff to work a week without taking a day off. And give them the tools they need to do their jobs. BR Lisa Carroll, SHRM-SCP, is a search executive and consultant with Kopplin Kuebler & Wallace, LLC, a consulting firm providing executive search, strategic planning and consulting services to the private club industry. She specializes in GM/COO and executive chef searches. The company has offices in Scottsdale, Jupiter, Denver, Cleveland, Naples, New York City, and Washington, D.C. Lisa can be contacted at (561) 596-1123 and at lisa@kkandw.com. Mark Filippo is a restaurant chef consultant specializing in menu development, strategic planning and kitchen restructuring. He has opened several restaurants for clients throughout Westchester and New York City. He has also been a consultant for club including The Polo Club of Boca Raton and Aronimink Golf Club. Mark can be contacted at (203) 940-0178 and msf110@gmail.com.
RAISING THE STANDARD TO
RAISE OUR GAME USPTA is the first and only USTA accredited tennis teaching professional organization. Together, we will set a new standard of excellence and provide even more opportunities for those who teach tennis to grow and advance.
To learn more, go to usta.com/raisingstandards © 2019 USTA. All rights reserved.
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JEREMY HOCH
HOUSE COMMITTEE
Jeremy Hoch is president and owner of Anchor Consulting Services, an independent consulting and training organization specializing in club management software and best practices. During the past 15 years, Jeremy has worked with hundreds of clubs. He can be reached at (786)-732-4950 or Jeremy@anchorcs.com.
The Paperless Club Ways to Make It Happen
Private clubs love the idea of going paperless, but what does that really mean? We’ll never be able to cut out 100 percent of our paper usage, but there are tools available to all clubs to greatly reduce the need for paper which can help you achieve your goal of an (almost) paperless club. Let’s take a look at the top six ways that clubs use lots of paper with suggestions for change. 1. Paper POS chits: These break into two categories: • Unsigned chits - Walk into any private club accounting office, and you’ll certainly find boxes and boxes of unsigned paper chits. All of the accounting systems and websites today store copies of the unsigned chit so why keep them on file and take up storage space for these unsigned chits? • Signed chits - There is a great value to storing signed chits, so when a member disputes a charge, we can go back to the signature and determine the legitimacy of the charge. That being said, consider moving to electronically signed chits and eliminate paper chits completely and have your clubs email you a receipt. 2. Paper statements: The vast majority of your member statements should be paperless by now. If you are still printing a large number of statements, you should make this a top priority. More and more clubs are sending an email message that the statement is ready and available for online viewing, much like credit card and utility companies have been doing for years. Give a coupon or launch a “going green” campaign to incentivize your members. 3. Paper invoices for accounts payable: This department is drowning in paper. Ask all of your vendors to email you their invoices and statements and they will be very happy to comply. Create an in-house system to organize and manage all of these invoices, so they are readily available whenever someone wants them. 4. Paper checks: While we may never eliminate paper checks, why not make a push towards ACH and virtual credit card payments for vendors? ACH is largely ignored by clubs but provides the most cost-effective and secure methods of paying bills. Virtual credit cards are also a great option and will often share some of the processing fees with the club. 5. Membership files: Do you still have rows of file cabinets in your office for your membership files? It’s time to digitize and get rid of the paper. Start by bringing these documents into your club management system. All of the
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club management software vendors provide the ability to scan and attach documents to membership files (applications, correspondence, HOA letters, etc.). Alternatively, you might look to any of the document management vendors and find out that will meet your needs. Each of these has different levels of service and functionality to get your initial documents scanned and have your membership files digitized in no time at all. 6. Financial statement packages: Have a board meeting coming up soon? What does that paper package look like? Clubs spend a lot of time and money preparing, printing and shipping these packets to board members located all across the country. Rather than printing and shipping these reports consider uploading them to an access-controlled intranet, website or app so that board members can log in and review the reports for the meetings. This will greatly speed up the distribution of the documents giving board members the ability to prepare for meetings ahead of time. The club industry is steeped in tradition, and change comes slowly. But now’s the time to take a look around the club for ways to cut down on paper usage. Doing so will dramatically increase efficiency while reducing labor time and costs – producing an overall positive impact! B R
HINT|HARRIS INTERIORS www.hintatlanta.com NOVEMBER/DECEMBER 2019 | BOARDROOM
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NANCY BERKLEY
NANCY’S CORNER
Nancy Berkley is an expert on women’s golf and junior girls golf. Nancy shares news and her opinions about women’s golf on the www.lpgawomensnetwork.com and nancyberkleygolf.com.
State of the Golf Industry Flat Will Be the New Up
Don’t expect the traditional game of golf in the U.S. to show growth in 2019 predicts Jim Koppenhaver, President of Pellucid Corp, an “outside-the-ropes” golf industry consulting firm. According to Jim, “Flat will be the new up.” For another view, I called the National Golf Foundation (the NGF) in Jupiter, Florida. The NGF annual “Golf Participation” reports are available on www. ngf.org. I value NGF statistics because they consistently define a “golfer” as a person over the age of 6, who has played at least one nine-hole round in the previous survey year. For the past 20 years, the number of golfers according to the NGF definition has hovered around 25 million. To deal with the flat grim statistics I contacted the NGF’s Chief Business Officer, Greg Nathan. “So Greg, these no-growth stats are pretty depressing.” His answer: “There is no gloom and doom – 2.6 million people tried golf for the first time last year… 10 million unique first-timers in the past five years. Since golf has been stable and not growing, despite those first-timer numbers, that should tell you what you need to hear relative to golf’s main challenges.” I knew where Greg was going. “Golf’s front door remains intimidating to those newbies. And golf courses have a long way to go to be more welcoming and accommodating to novices, women, minorities, etc. Those first experiences need to be great and they aren’t for most people. Only the people at the golf courses can make those experiences special and fun! Golf can learn a lot from the leaders in the hospitality industry.”
According to Michael, although Addison Reserve has a fine golf course, members buy at Addison Reserve because of the beautiful homes, the excellent food, fitness facility and outstanding staff. In fact, according to Michael, the golf course is last on the list. As we talked, he explained that his facility is in the “hospitality” business although golf is not the primary product. The next conclusion was obvious to me. The golf course component of most golf clubs has a “hospitality deficiency.” Most golf instructors and staff view themselves in the “golf-instruction” business. They don’t see their role in the club’s hospitality chain. In fact, I don’t think I’ve ever received a “thank you” or “encouraging” follow-up note from any golf instructor over the many years of my golf lesson experiences. If the golf industry wants to increase the number of golfers, it has
More Par 4 courses are being developed. Architect Jan Bel Jan, the president of the American Society of Golf Course Architects (www.ASGCA.org) has developed a method to construct a set of shorter tees – called “Scoring Tees” – on an existing course hidden behind rises in the fairway. Nicklaus Design is making news with a new par 3, nine-hole short course that caters to beginners, juniors, seniors and die-hard golfers alike along with a putting course at The Concession Golf Club, in Bradenton, Florida. I knew who to call: Michael McCarthy, CEO and general manager of Addison Reserve Country Club, a BoardRoom Distinguished Club, in Delray Beach, Florida. I had heard raves about a women’s golf member-guest event at Addison Reserve and decided to check in with Michael for his view of the current state of the golf industry. 68
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to implement some basic hospitality measures along with the “know your customer” rule. Thinking outside the box is the key. And, I knew who to talk with next.
Former PGA President M.G. Orender owns over 20 courses in the Jacksonville, Florida area. After interviewing him many years ago for a book I was writing, he showed me his “family-tees” and score card. He was so far ahead of the industry they didn’t even see him! “So, M.G.,” I asked, “How do you describe the state of the golf industry today?” His answer was beyond frank: “Golf is stale,” he said. That’s the reason why he bought a course a few years ago, spent lots of money renovating it and named it the “Blue Sky Golf Club.” Golfers check in at the bar, wear whatever they want and enjoy the game and the driving range, which is lit at night. Blue Sky (www.bluesky.com ) is women-friendly, kidfriendly and in his words “everybody-friendly.” See M.G. understands trends. His portfolio includes more traditional golf courses. He’s quick to point out that with change comes – in his words – ‘incredible opportunities.” The opportunities are there! More Par 4 courses are being developed. Architect Jan Bel Jan, the president of the American Society of Golf Course Architects (www.ASGCA. org) has developed a method to construct a set of shorter tees – called “Scoring Tees” – on an existing course hidden behind rises in the fairway. Nicklaus Design is making news with a new par 3, ninehole short course that caters to beginners, juniors, seniors
and die-hard golfers alike along with a putting course at The Concession Golf Club, in Bradenton, Florida. The Martis Camp community at Lake Tahoe has an outstanding putting course designed by Dick Bailey that adjoins a beautiful and outstanding Tom Fazio course. All of these opportunities may not increase the number of traditional golfers. It will always be hard to count the newcomers who do not fit into the NGF 9-hole golfer survey. I’ve just returned from the women’s Solheim Cup in Scotland, where over 90,000 fans trekked to Gleneagles to watch 36 women play golf for three days. That’s the best sign yet that this 400-year-old game has a future. B R Nancy Berkley is an expert on women’s golf and junior girls golf in the U.S. Nancy is a member of the World Golf Foundation Women’s Committee, and a member of the National Golf Foundation. A graduate of the University of Minnesota, Harvard University, Rutgers Law School, Nancy also has a degree from the Professional Management Program of Harvard Business School. She shares news about women’s golf – along with her opinions on www.nancyberkleygolf.com. Nancy also writes for the LPGA Women’s Network. https://lpgawomensnetwork. com/ Nancy is a member of Frenchman’s Creek Beach & Country Club in Palm Beach Gardens, Florida.
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ANGELA HARTMANN
GREEN COMMITTEE
Angela Hartmann is GCSAA director, marketing and communications. To learn more about GCSAA’s wide range of continuing education opportunities for the golf course management industry, visit gcsaa.org.
GCSAA Offers Friend Memberships for Those Who Love Golf The Golf Course Superintendents Association of America (GCSAA) has introduced three new membership opportunities to engage golf facilities with leaner budgets, facilities with multiple GCSAA members and individuals or groups outside of the profession who want to show their support for superintendents. “GCSAA has something to offer golf facilities of every size,” GCSAA CEO Rhett Evans said. “With the new Facility Membership, smaller operations will have access to GCSAA resources for their whole team at a price point in line with their operation. With the Multi-Member Promotion, larger facilities will save when they add a GCSAA member.” Facility Membership will allow a team to have access to GCSAA’s resources and services, particularly in those areas that can help train their team, enhance their knowledge and create efficiencies that will result in savings for the facility. To be eligible for Facility Membership, a facility must not have had a GCSAA member in the last three years, and the facility’s green fee must be below the 50 percent median in their region (regions will be based on GCSAA field staff regions). Dues will be $200 a year for the facility and its employees. Through the Multi-Member promotion, everyone on the maintenance staff can benefit from the valuable information and professional development opportunities that come with GCSAA membership and use that to improve the efficiency and profitability of the facility. Facilities can receive a 10-percent discount on membership dues (up to $100 in savings per nine or 18-hole equivalent). Finally, there is now a way for golfers to preserve the places they play and support the team that makes it possible. You can directly support the game you love by becoming a Friend of the Golf Course Superintendent. “We have seen an increased interest in GCSAA outside of golf course management professionals as we’ve raised our profile through golf advocacy efforts and our STEM education program, First Green,” Evans said. “The Friend of the Golf Course Superintendent Membership gives those who love golf and appreciate the key role superintendents play in enjoyment of the game the opportunity to show their support.” Those who join GCSAA as a Friend of the Golf Course Superintendent will receive a GCSAA sticker, ball mark repair tool and instructions and GCSAA bag tag to identify them as a Friend. In addition, they will receive a newsletter where they will learn more about GCSAA programs such as First Green, GCSAAPAC and more.
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GCSAA CEO RHETT EVANS
Friend memberships for individuals will be at $50, $100 and $200 levels of support. In addition, there will be $400 memberships for groups of up to 10 people such as green committees, private club boards and more. Funds from this membership class will go to support advocacy, turfgrass research, environmental efforts and scholarships. For more information and to join GCSAA as a Friend of the Golf Course Superintendent, visit www.gcsaa.org/friend or visit gcsaa.org/join to learn about all the membership options. B R
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DAVE DOHERTY
GREEN COMMITTEE
Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil based greens. He can be reached at (913) 706-6635 or via email: daveistrc@hotmail.com
Our Greens
Should We Rebuild, Regrass Or Neither? The subject of greens, it seems, has been the focus of the majority of my meetings over these past few months. The question is always the same and it’s one that needs to be answered after exhausting research, soul searching and honesty within the group that has been assigned the task of making the decision of: “What should we do with our greens?” Total rebuild…till and regrass…no till and regrass, or rebuild through our in-house agronomic program? The knowledge that we’ve accumulated over the past 10-plus years, based on science, has made it possible to produce and maintain high quality greens (in most cases) without going through a total rebuild and a million plus dollars. If we’re considering rebuilding our greens because of the desire for more or less movement in them, that’s one thing, and we should consult and work with an architect. If we’re considering rebuilding our greens because of weak turf, then that’s a whole different story.
The first-tier sample needs to be from the surface to a four-inch depth. The second-tier sample needs to be taken from the four-inch to eight-inch depth and the third-tier sample needs to be taken from the eight-inch depth to the 12inch depth. Hopefully at the 12-inch depth we will be into the gravel layer located just below the greens mix. The organic matter and sand size and shape need to be quantified in one-inch increments to the gravel layer. Checking the number two cause of green failure ¬– lack of oxygen in the root zone – is something that can be done by the maintenance staff in-house and on site.
Excessive organic matter in the top three inches of a green is the number one cause of green failure. The number two cause of green failure is a lack of oxygen in the root zone. Both of these two factors need to be thoroughly checked before making a final decision. Regardless of why we are considering doing something with our greens, we need to first, based on science, find out what we have and what our options truly are. In most cases, if greens were constructed in the past 40 years using sand, met USGA specifications or [recommendations, as it is known today], and USGA approved drain systems, the odds are that a total replacement of existing material is not necessary. Sands normally do not change. There’s contamination yes, but change physically, no. Excessive organic matter in the top three inches of a green is the number one cause of green failure. The number two cause of green failure is a lack of oxygen in the root zone. Both of these two factors need to be thoroughly checked before making a final decision. The organic matter in the top four inches of a green needs to be identified and quantified in one-inch increments along with a complete physical of at least six greens to provide the information needed to get started with an evaluation of greens. The physical properties evaluation of each green needs to be taking in fourinch increments to the gravel layer [normally three samples] from each green. 72
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Our two-part article (March/April and May/June 2008, Boardroom magazine) entitled “Bad Guy Gasses”, outlined the effects of a lack of oxygen in a root zone. Review these two articles before making a decision regarding rebuilding or regrassing greens. By working with golf course superintendents over the last 20-plus years, we’ve been able to develop procedures that allow us to identify if greens are suffering from bad guy gasses. Unfortunately, greens are like our children and very few are alike. Greens age differently depending on many different factors and as a result it’s impossible to outline a procedure or set of procedures to identify bad guy gasses. Let me know about your situation and I will direct you as best I can. BR
STEVE SCHENDEL Steve Schendel is vice president/agronomist with Golf Maintenance Solutions. He can be reached at (630) 220-5977 or via email steve.s@golfmsolutions.com
GREEN COMMITTEE
Bigger Isn’t Always Better While writing this article, and as the holiday season approaches, I can’t help but think about labor and the evolving work world we live in. The industry and national trend in labor continues to be a challenge for many businesses and golf courses are no exception. Whether it’s the vacant assistant superintendent or a grounds maintenance operator position your club has been looking to fill, the struggle is real. Increased minimum wages and a different demographic work force with Millennials have only added to a challenge that has been growing with each new year. Add in a healthy economy that offers various job opportunities and the result is a revolving door of employees for many golf courses. This fall many of us have been preparing for 2020 by developing budgets and adjusting business plans. Staffing is no doubt part of this planning phase and a key component to ensuring success. As you develop plans, look at how you can build a sustainable team of co-workers. This is certainly easier said than done, but we really are at a point where change is needed. When I have conversations with superintendents, we often discuss how the crew size used to be “X” number of employees but how the club has been short staffed and is operating with two or three employees fewer than budgeted.
Many quality employees who were making good money at $11/hour a few years ago are now only making minimum wage. This can be a de-motivator to someone who has been loyal to your operation for many years. So instead of looking to pay a warm body new hire $13 or $15 an hour, leverage some of their wages towards your current crew. This can help build morale and increase production. Most of us have had that one job where over a period of time the crew was all on the same page and worked great together. Some of the best crews I have been a part of were smaller ones. This doesn’t mean that to build a sustainable staff we need to start eliminating positions. As we plan for next year, we do need to look for answers to our escalating
Some of the best crews I have been a part of were smaller ones.... Dealing with two or three new hires who are under-performers is not a recipe for success. Depending on your crew size, working with one or two fewer employees and really taking care of your core staff can help improve production, course consistency and create an excellent work environment that employees fully embrace. This often leads into comments like, “Even if I do find someone, they are not very good and they may leave me for more money at a job down the road in a month.” These are valid points and common issues throughout the country. One solution to this problem is to maximize your current work force and potentially work with fewer employees. If your staff has turnover of two or three positions each year, it may make sense to stop adding new faces. Most, if not all properties have a core of quality employees. Rather than trying to make someone “fit” a position just to fill it, try relying on your core staff and your existing employees. Many studies have been done on job satisfaction and motivation, and we know that while money is not collectively the most driving factor for employees, it is still an important one. Especially in today’s world.
labor shortages. Dealing with two or three new hires who are under-performers is not a recipe for success. Depending on your crew size, working with one or two fewer employees and really taking care of your core staff can help improve production, course consistency and create an excellent work environment that employees fully embrace. Sometimes less is more…more manageable, more efficient, more consistent, more sustainable and more enjoyable. BR NOVEMBER/DECEMBER 2019 | BOARDROOM
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BRUCE R. WILLIAMS Bruce R. Williams is with Bruce Williams Golf Consulting. He can be reached via email: brucewms1@hotmail.com
GREEN COMMITTEE
Challenges Golf Clubs Face Today All reports show that the golf industry is healthy once again. Through a decade of downsizing and rightsizing we are stable once again. During the process golf facilities have had significant challenges filling their memberships, filling tee sheets and staying profitable. And it wasn’t uncommon to see staffing for golf courses cut and budgets reduced to meet overall budgets for the facilities. Few, if any, golf courses did not react to cut expenses. The quickest way to do that is to cut the largest budget item, which is typically labor. Golf course superintendents are a creative group and found many ways to cut costs, including: • Reduction in forces • Use of part time help • Mechanization to facilitate efficiencies • Adjustment of schedules. One of the challenges during this time period has been to meet or increase golf course conditions while reducing costs. And that’s the biggest challenge we currently face.
For decades we have relied on the same sources for labor. Frankly that just doesn’t work anymore. Many superintendents grew up working on golf courses when they were in high school. Caddies became a good source of labor. Migrant workers opted for steady employment on a golf course rather than picking crops. The number of applicants exceeded the work available. Staffing options today: Different areas may find different sources for employees but here are a few ideas that are “outside of the box” thinking as you fill your vacancies. • FFA is the Future Farmers of America and they have chapters all
Competition is keen for entry level positions. Remember it is not just the golf courses around you that you are competing against… it is also fast food restaurants, retail stores, landscape companies, contractors, etc. With a strong economy, our labor challenges will continue. Hiring, training and retention of staff are every bit as important as growing the grass! The key points are to look at options you may not have thought of a decade ago. Staffing: Many of the common sources for staff on the golf course have dried up in recent years. As the economy has rebounded there are a variety of other jobs and trades that we compete with. Since unemployment is at an all-time low, we feel the effects of that. In recent discussions with fellow superintendents it is not unusual to have three to four open positions on a staff of 12-24. In order to attract and retain good help it’s imperative that superintendents become creative. 74
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across the USA. Some of the best employees I’ve ever hired came from a farming background • Hiring vets is the right thing to do. As vets return from active duty many are looking for jobs and some actually go to
school on the GI Bill and eventually become golf course superintendents. • Golf teams at your high school or those in the area can be a good source. Don’t overlook colleges as well. Beyond a golf team there are a number of horticultural programs at community colleges that are a source of new applicants. • Have you tried social media? A superintendent friend posted his job openings on LinkedIn and got more responses than he had positions available. • A fast food restaurant chain has opted to find employees through a church base. If it worked for them, it can work for you. Bulletin boards in local churches can be a good source for new hires. • In some parts of the country the golf course team is Hispanic. If that is the case, then advertising in a Spanish newspaper will likely get better results than the standard newspaper. • Often the staff does bring referrals for open spots but try giving an incentive for people on your team bringing in referrals that result in hires. A $50 gift card can be a great return on investment. A recent visit to a Target store or a Whole Foods store made me realize there are plenty of people with tattoos that can be great employees. Once frowned upon in the country club circuit, we must look at cultural changes and be willing to accept things that are more commonplace in our society today. Golf course operations have historically been very stringent in their structure. Most are looking for employees that can work from 6 a.m. to 2:30 p.m. Today there are quite a few people who are looking for flexible schedules. Imagine retirees that only want to work a half day and how much you can get done in that 6-10 a.m. time slot before golfers fill your course. Some have found ladies to be great equipment operators and might be available between the time they drop kids off at school and the time the kids are out of school. The key points are to look at options you may not have thought of a decade ago. Competition is keen for entry level positions. Remember it is not just the golf courses around you that you are competing against…it is also fast food restaurants, retail stores, landscape companies, contractors, etc. With a strong economy, our labor challenges will continue. Hiring, training and retention of staff are every bit as important as growing the grass! B R
The value of peripheral vision.
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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
Little Things Mean a Lot Music has always been a big part of my life. With my Italian heritage, this probably isn’t surprising. So, for me, it’s only natural that I sometimes use song lyrics as an analogy to emphasize a point I’m trying to make – especially when I’m talking about the ever-changing and always-escalating expectations that members have for their clubs. I had been working with a club on developing some member WOW tactics. On the flight home that night, a ‘50s song – Little Things Mean a Lot”, a hit tune written by Edith Lindeman (lyrics) and Carl Stutz (music) in 1953 – kept popping into my head. A year later, Kitty Kallen’s recording topped the Billboard chart. And it’s been an “oldie but goodie” mainstay ever since. Send me the warmth of a secret smile To show me you haven’t forgot For always and ever, now and forever Little things mean a lot In our club world, we translate these lyrics into the old-fashioned mantra that members may forget what you did or what you said, but they will never forget how your made them feel. This is the warm and fuzzy part of clubs. The emotional bond. The lagniappe. The surprise. The WOW factor. And these all add up to the key concept of delight. When it comes to thinking about giving five-star service, everyone in the club business talks about the importance of member satisfaction. You must satisfy your members. You must conduct surveys asking members, “Are you satisfied with….” Member satisfaction is your number one goal. Right? Wrong! Satisfaction happens when you meet your members’ expectations. It’s like getting a “C” grade on a term paper. But member delight happens when you exceed their expectations. It’s like getting the “A.” The difference is in the verbs – meets versus exceeds. There are myriad ways that will take your club from meets to exceeds and here is my top three. • Anticipate, don’t just react. I can remember the first time a colleague and I were in China to present seminars for managers. The first morning we went into the hotel’s dining room for breakfast, the servers found out we, like many Americans, “needed” – not just wanted – our wake-up coffee right away. From that morning forward, as the hostess would see us bounding down the lobby’s grand golden staircase, she would signal to our server who would then greet us at the door with steaming cups of 76
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java, a twinkle in her eye and a little giggle. To this day, I remember that experience more than the splendor of the hotel, of visiting the magnificent antiquities, or the success of our presentations. • Find your member touchpoints. Disney designs an entire journey for its guests, not just a single interaction. From the website to the retail stores to the hotels to the lines for each ride, Disney has identified every point where a guest touches the brand experience. Management knows that each point is a chance to WOW the guest – to exceed expectations. If you have not constructed your member’s customer journey map, take a day, grab some flipcharts and magic markets and discover all the touchpoints where you impact their experience. It will be time well-spent. As Walt Disney said, “Just do your best work – then try to trump it.” Take your members on a journey, not just a single interaction. • Surprise your member. Like many restaurants, my club offers the table a basket of rolls or breads before presenting the dinner menu. Now I’m not much of a bread-face. In fact, I don’t even like bread or rolls. But I am a nut for crackers, especially those rectangular shaped flatbread crackers. Overhearing me joke with our server about the club not having any of these crackers, our newly-minted assistant evening dining room manager jumped in his car, drove over to the nearest grocery store, and 10 minutes later, surprised me by placing a basket of my favorites in front of me. Since that time, they are known simply as Bonnie’s Basket. Marketing company HubSpot coined the term Delightion and emphasizes the need to focus on customer delight not just on making them satisfied. And it all starts with getting your whole team on board. In other words, delight begins from within to build culture of delight. SEE MEMBERSHIP MUSINGS | 97
FRANK BENZAKOUR F. H. (Frank) Benzakour is a Cornell graduate, professor of Contemporary Club Management at Fairleigh Dickinson University, Contact Frank at www.frankbenzakour.com Check our Frank Benzakour’s 12 Golden Keys of Hospitality Excellence on Amazon.com
HR COMMITTEE
Over-Invest In People A company’s most precious asset is its staff. In other words, your employees are crucial to the success and viability of your private club and well worth any cost. Hire the Best To acquire employees who are the best fit for the job, your hiring practices and day to day operations need to be directly aligned with your club’s values. Also, you have to be able to describe the duties and control points of the position that you’re interviewing for. So, design jobs based on what your club needs and target the right candidates. The best applicants are usually found through referrals. Once you have suitable candidates there’re several qualities to look for when choosing the best person for the job. One is attitude because anyone can learn skills but honesty, courtesy, enthusiasm, and friendliness, which employees of a private club critically need to deal with members and coworkers in the best way possible, aren’t easy to teach. Another trait you want in a candidate is integrity. Search for displays of ethical behavior in their previous jobs as well as honesty. Interview any senior level candidate at least three times and ask the same questions including those regarding important values to ensure their answers are consistent. You also need someone who is very competent. Look at what the candidate accomplished at the previous club they worked in regarding improving operations, impacting member services, and how many people they mentored. Most likely they’ll repeat their work performance in the past in their new job at your club. Another key quality is compatibility. The candidate’s management style should fit within your club’s culture. Your company culture is the cement that holds your private club together. Researchers have found that cultural incompatibility is why half new hires fail in the first 18 months of a new job. Some key points to observe in the interview, to prevent this, are how well the candidate articulates their thoughts, their body language including eye contact, and the types of questions they ask. Over Pay To Avoid Sabotage If you don’t pay your employees what they’re worth another club or organization will. Therefore, inadequate wages can result in other clubs poaching your prodigious workers one by one. This gives the competition a tremendous advantage over your club. Additionally, low pay can result in low productivity and high turnover rates. Employees who are unhappy with their wages and are looking for a better job aren’t productive. Also, if you aren’t paying the highest income reflected in the market you won’t be able to recruit the best of the best. Moreover, if an employee feels underpaid and unappreciated they won’t care about their job and might be rude to the members. So, paying low wages can lower your club’s reputation and credibility. When you show your staff, you prize them more than revenue, they’ll compensate you with high employee morale and engagement. By paying liberal salaries you can raise your expectations and hold your employees to a higher standard. And, your workers raise the bar for themselves to excel in the position. Also, it’s easier to recruit members to your club if they feel you are good
to your employees. That is why your club’s high expectations and service ideal, as well as the value you place on employees, must be mirrored in the wages you pay. Calculate the top salary each worker could make in a similar position at other companies and pay the maximum. But, it takes more than just money to inspire workers to give their all at work. Also, offer a rock-solid benefit package to differentiate your club from the competition and attract and retain top talent. And keep emotional currency in mind as well, the numerous benefits your staff wants besides a raise or promotion, such as having pride in what they do. And, they need a life apart from work, some time to spend with friends and family. They also want to be treated fairly. Nobody wants a job where the bosses’ favorites are rewarded and recognized over those who work harder and achieve more. Another thing workers are looking for is a job where they are coached instead of being micromanaged. It’s also important that they have some say or influence in the club, and that their contributions have value. Moreover, employees want less stress. They want to work for a club that plans ahead, predicts potential problems, and sets realistic goals, so the workers don’t burn out. And, job security is of major importance to employees. Though they don’t expect lifetime employment they don’t want to feel that at any moment they may be let go or the company may close down. Another emotional benefit employees value is to be on the winning team. Employees want to help their company beat the competition. Workers also want a boss they can respect, a leader worthy of their loyalty. Your staff also wants to be challenged, to contribute to projects beyond the normal scope of their duties, to avoid tedium and help the club succeed. SEE HR COMMITTEE | 97 NOVEMBER/DECEMBER 2019 | BOARDROOM
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RITA B. CRAIG
HR COMMITTEE
Rita B. Craig, CSP, SPHR, SHRM-SCP, president of Top Tier Leadership is a leadership consultant, trainer and keynote speaker. She can be reached at (561) 775-3396. www. TopTierLeadership.com
The Not So Far Off Future On their heels comes Generation Z, even more Perhaps the most important thing to understand about the future of wedded to tech, accelerating the changes. Five human resources is that it’s coming on fast and that the most important years from now, it’s estimated that HR’s remote trend is technology. workers will be very remote, up to 10 time zones It’s a world of new ways of working marked by terms such as artifiaway and globalization will have fostered even cial intelligence, analytics, virtual reality, and gig economy. greater diversity. At the same time, new tech You may not need to plumb the depths of knowledge on all of meeting social and cultural change may require them today but adapting to tomorrow’s new reality will require a new planning. Where, when and how will people’s basic understanding of how they’ll affect your industry. work evolve? First, some thumbnail definitions: Taking the last first, a gig The word “reskilling” is an important one to economy is a system in which independent workers and comknow. As technology disrupts jobs, HR leaders panies contract for short-term jobs. The word gig is often asneed to look ahead and prepare for what’s to come. sociated with musicians, but it also means a job one takes for a To ensure future relevance, all parts of an organispecific period of time. zation should consider new ways of partnering and thinking about strategy. Are HR leaders prepared Artificial intelligence is an algorithm, usually a set of instrucfor what’s being called change agility? tions, to solve certain problems. Algorithms can perform not only Change agility means being tech-savvy and calculations but data processing, automated reasoning and other flexible enough to deal with an increasingly nimtasks. In HR today, AI is used mainly for recruiting and hiring. In ble and diverse workforce. Technology will help the future, it will make HR operations run more smoothly and them adapt to the changes, may even inspire workers more productive. them. It will also free them to take on more demanding but exciting roles. Analytics in HR is the discovery of meaningful patterns in data “I think HR positions will become one of the and applying them for effective decision-making. Organizations may most sought-after professions,” says Jill Goldstein apply analytics to business data to describe, predict, and improve of the management consulting firm, Accenture in business performance. Miami, “as they develop into workforce advisors.” New technologies will emerge rapidly. Some Virtual reality is a simulated experience that may be similar to will be game changers for the way people work. the real world or completely different. Someone using VR equipOthers may not be and will disappear. Still othment can look around and interact with the artificial world, usually ers may move from being an expensive risk to an by using a VR headset. It can have educational purposes, such as for essential tool. medical or military training, or entertainment such as gaming. It’s not necessary now to master all the complexities, but it will be useful to grasp how The term “new work” is being used to describe the interconnecthey’ll help HR operations and affect your job. tion of these trends. Dealing with automation and digitization will By 2025 – and it’s really not that far off – some require new approaches, which can free people to focus on other experts say HR will look so different that even aspects of HR. As Millennials become the nation’s largest group of its name will be changed to better reflect the workers, technology can help HR people adjust to a workforce used work it’s doing. to going online for everything. Many of these Millennials, by the So buckle your seat belts for what may be a way, will be comfortable as gig workers popping in and out of jobs bumpy ride. Tech’s takeover isn’t just a trend. It’s on a daily basis. a transformation. B R 78
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DAVID W. LACEY David W. Lacey is a member of the Philadelphia Cricket Club and served two terms as a member of the Board of Governors. He also served as tennis committee chair. He can be reached via email: dlacey@hirshorn.com, or by phone at (210)298-0047.
HR COMMITTEE
Six Performance Management Trends To Jump On at Your Club The once a year performance review with an employee is dying fast, if not upon a series of short-term successes. It is best to DOA – Dead on Arrival. At least six different trends now account for this think short-term success as a building block for the long-term reputation of the club. review discussion change. Trend one: Approximately one-third to 40 percent of the current work force at a club is comprised of Millennials, ages 25 – 38. By 2020, this group will comprise 50 percent of your work force. These employees seek ongoing performance feedback that addresses their pervasive question of, “How am I doing?” Once a year is not enough! They ask because they are very curious and want to add to their capabilities. They want to be more effective in the future. Trend two: Professional development or PD has replaced metric-based evaluations, using a five-point scale. PD is now an important target of performance conversations and focuses on actions to increase an employee’s capabilities so they can be more valuable to the club. PD helps the employee and the club to focus on skill acquisition needed for the club’s future success and the professional. In fact, a recent survey reports that 70 percent of global companies are heading toward this model and 40 percent are already there. Feedback and coaching, occurring frequently throughout the year, is now the new normal. As you might expect, technology companies have led the way toward a PD model. This endorsement of a new performance management model is evident with Adobe, Dell, Microsoft, Juniper Systems and IBM. So too, have professional services firms endorsed the PD model – Accenture, Deloitte and PWC. It’s now time for clubs to join these elite, pace-setting companies.
Trend five: Values and principles – the “How of Work” – now have equal status with the “What of Work” – your results or accomplishments. Mini-reviews emphasize the values or principles of collaboration, helping a colleague, initiative or self-direction, reflection about my contributions to success, treating my boss as my number one customer, solving job-related problems, etc. These principles are changing the definition of effectiveness at work. It is a small action step with big impact. The what and how of work are now equal! Trend six: Technology and the use of it has led to capturing information about PD and performance much easier. General Electric relies on its “PD at GE” app with PD standing for performance development. Amazon has its app, called Anytime Feedback and several technology firms have their “Agile Manifesto.” All of these apps or technology-based platforms offer managers and employees more opportunities to report on the what and how of their work. This type of reporting needs no paper! They also provide immediate feedback and target PD action plans for an employee’s growth. Many payroll companies offer similar apps and electronic platforms for capturing this data. One of the best technology-based platforms is FOLIO.
Trend three: Frequent, at times informal, check-ins between managers and their employees dominate the performance landscape. At a club these check-ins or debriefs will occur after a major event where the team reflects on “what worked” and “what did not” in terms of individual and team effectiveness. All of these platforms are tools to support the This check-in shortens the cycle between an event and feedback, manager-employee discussion of performance, thus ensuring that performance strengths are affirmed and shortfalls the what and the how of work. The six trends (with performance improvement actions) are addressed. should capture the attention of clubs and accelerate actions to implement one or more of Trend four: Managers and their employees engage in a goal-setting these trends. Go for it and be a feedback and process for the next month or next business quarter. They focus on coaching leader! B R these short-term priorities that account for and lead to future success. This trend replaces annual goal setting. The culture at a club is built NOVEMBER/DECEMBER 2019 | BOARDROOM
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INNOVATIVE
IDEAS
Army Navy Country Club Into Action With USCG Food Drive Many private clubs engage in fundraising and outreach for local causes that serve their community. The Army Navy Country Club in Washington, D.C. is purpose-built for service. With more than 5,000 members, the majority of ANCC’s membership is comprised of active duty and retired military officers from all armed service branches. In late 2018, the club’s membership acted swiftly to serve an immediate need in their community, and to provide for those affected by the Federal Government shutdown, which started on Saturday, December 22, 2018 and lasted for 35 days, concluding on Friday, January 25, 2019. The shutdown directly impacted local US Coast Guard personnel, who were not paid during that period. As a result, many area service members and their families experienced extreme hardship. “It was a very quick “pop-up” event that took shape in less than a week but produced great synergy between the members and the staff for a great cause. It was great to see everyone rally to help others in need, said Patrick King, the club’s general manager and COO. “I worked through one of our members, Admiral Gilbert, who was also very appreciative of the support from his Club.” Army Navy Country Club was nimble enough to organize and establish a donations collection point in the parking lot at the club’s Arlington, Virginia campus. Over the course of two days, ANCC members and staff dropped off dry goods, canned goods and items suitable for young children, including diapers and toys. By the close of the two-day drive, the club had collected enough donations to fill six truckloads. In addition to much needed hard goods, club members also made generous financial donations. The club collected gift cards, gift certificates and checks totaling $6,000 to help local Coast Guard personnel and their families. “ANCC members are incredibly proud of the club’s rich history — going back almost 100 years — of supporting service members and their families. This effort to support U.S. Coastguard families was yet another example of our member’s generosity. While the shutdown may have ended, its effects will linger,” King added. B R 80
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MEGHAN THIBAULT Meghan Thibault, Innovative Ideas editor, is a professional writer and communicator with a passion for storytelling. A writer at heart, Thibault has been involved in the hospitality and club industry in Canada, the Caribbean and Hawaii. She is currently a member and on the membership committee, at Mid-Pacific Country Club in Kailua, HI. To submit an idea or story for this section, please email ideas@boardroommag.com
Custom Craft Brews and Tasting Events Elevate the Beer Experience With the craft beer market exploding across the country, many private clubs are embracing the trend by producing a custom brew created exclusively for their club members. According to the Brewers Association, overall U.S. beer volume sales were down one percent last year, but sales of craft beers continued to grow at a rate of four percent by volume. Reaching out to local breweries to craft a custom brew is a pretty easy process and most breweries are grateful to have a venue willing pour their products exclusively. The most difficult step is coming up with a creative name for your hoppy beverage! If you’re not willing to make the leap to a craft beer created exclusively for your members, another
way to capitalize on this trend and gain added member interest is to hold seasonal beer tasting events. Held monthly or quarterly, a craft or draft beer tasting event brings members out for a fun, interactive event at the club that encourages social interaction. Interested club members can attend and offer their input at such events, or you can leave it to a low-stakes and fun “election” complete with ballots and a voting booth. Tastings events like these not only engage member taste buds but they also give members agency over what’s being poured at the bar. In this way, members can help pinpoint which beers to keep on draft for the next season or quarter. It’s a win-win for beer loving club members who like to have a say in the bar menu choices, and in the end, it’s these members who will be ensuring those kegs are getting rotated on a regular basis. BR
Private Club Pop-Ups Provide the Unique Experiences Members Crave Taking their cue from the hotel and restaurant industry, many private clubs are hosting pop-up events with great success. The popular concept is yielding member engagement for many clubs willing to get creative and tap into the experiential pop-up concept. From pop-up dining experiences to holiday markets, from pop-up bars to boutiques, the club industry has embraced this mainstream trend that Forbes magazine cited as being driven by a consumer desire for novel experiences, exclusivity and a moment worth capturing (for social media, if not for posterity). So what makes a great pop-up event? Well, first you have to be nimble enough to respond to a need. In this issue, a pop-up fundraising event held by Army Navy Club in Arlington, Virginia was put together in response to a headline in every newspaper. Another key to success is to build excitement, without losing the feeling of novelty surrounding your event. Making it look effortless behind-the-scenes is harder than it seems, but smooth logistics and careful planning are one key to making pop-ups work. Yet marketing your event to members means conveying a sense of urgency. After all, this opportunity will only happen once and it’s a
lucky opportunity that they shouldn’t miss! Successful pop-up events also arise from a club’s ability to maximize existing locations and transforming them into an occasion that both looks and feels special. Members don’t want to attend just for the sparkling photo opportunity alone (although that’s a big factor). A pop-up dinner at a secret location on the golf course, or in a cozy room with limited seating can transform an evening into something exclusive and sought after. Inviting a guest chef or mixologist to create a bespoke dinner or cocktails is another means of creating a one-time experience. Whatever you choose for your pop-up event, make sure it’s an event that will appeal to your club membership and their unique tastes and needs — whether it’s collaborating with a local chef that’s in the news or hosting a holiday craft market that renders your members’ Christmas to-do lists shorter, easier, and more enjoyable. B R NOVEMBER/DECEMBER 2019 | BOARDROOM
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Naples Yacht Club Renovation Highlights Historic Murals For many years, a large mural by acclaimed local artist Paul Arsenault has delighted members and guests of the Naples Yacht Club in Naples, Florida. The mural depicts nearby landmarks and historic vessels well known to the club’s members and honors the history of Naples from the time it was a small fishing village. When the Naples Yacht Club launched its recent $10 million renovation, it was agreed that the mural would become a centerpiece of the interior design of the new club. “This historical mural was commissioned by one of our founding families many years ago and has always been an important feature of our club,” said Mike Mooney, general manager at Naples Yacht Club. The mural was divided into three sections, each one gracing a wall in prominent venues of the renovated club. The largest section now hangs in the club’s main ballroom. Another section graces the private Founders Room and the final section decorates the club’s new hallway where members and guests enter for large club events and private functions. A fourth mural by the same artist was added recently. It depicts the historic Keewaydin Club, located at the north end of nearby Keewaydin Island. The newest section of the Arsenault mural depicts the former Camp Keewaydin. Laverne Gaynor’s family bought the barrier island, then known as Key Island,
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in 1945. The main attraction on the island, accessible then as now only by water, was the Keewaydin Club at the north end, and eventually the club name became applied to the entire island. A native of Montreal, Quebec, Canada, artist Paul Arsenault grew up in Massachusetts where his love for the sea and travel emerged. After graduating from The Art Institute of Boston in 1973, he began a six-month stint as a deckhand on a research vessel that took him to Florida, where he began his professional painting career. Having travelled widely, Arsenault’s vibrant and widely collected paintings reflect a rhythm and pattern that distinguish his easily recognizable style. His lifelong pursuit to paint contemporary life in coastal communities like Naples is enhanced by his passion for history and his natural storytelling ability. The Naples Yacht Club is the first and oldest private club in Naples. Established in 1947, the top-ranking club has more than 550 members. Completed earlier this year, the club’s restoration included a complete refresh of the clubhouse, built in 1960. The renovation has maximized views of Naples Bay, as well as the club’s capacity for larger groups, member-hosted events and outdoor dining. BR
ARCHITECTS | PLANNERS INTERIOR DESIGNERS RM-ARCH.COM
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MACDONALD NIVEN MacDonald Niven, MA, MCM, CCE is with Niven Research and CEO of Lakewood Country Club, Rockville, MD and can be reached at (510)-439-8522 or via email: mac@niven.cc.
ON THE FRONTLINES
Retaining an Aging Membership The answer from many respondents was, A very successful 100-year old club has a single full privilege membership: “Yes.” Some suggested creating a social categolf, tennis, pool, etc. The issue is an aging membership. gory, some suggested a tiered approach. As one There is concern that the older members with long tenure are no manager put it, “I think every club should use a longer capable of playing golf or tennis, but still have strong ties to tenure-based model for dues. The longer you the club through friendships. A fear is that the older members will stay, the less you pay. Reward for longevity, resign because the loss of playing while still paying full dues will dinot how far away you live from the club or how minish the club value to them. many of the club activities you use. The challenge being considered is to create a category that fosters “The percent discount should be figured out good – will towards long time members yet maintains required revedepending on the revenue requirements of nues. The club does not currently experience a wait list for entry. the individual club. An example is 10 percent The issue was put before 187 managers from across the country off after each 10 years, free after 50 years of and the responses were varied, as we expect. However, there were membership.” two themes: Good will towards long-term members and maintaining One manager’s club has in place a Lifetime the revenue stream. Clubs should determine the reason for a new Membership, which was created specifically category. for those members who have entered the The underlying reason is important and the solution needs to nursing home. be carefully thought through or there could be unintended conseClubs more concerned for revenue loss have quences. One club reported having over 48 categories of membership! similar responses, but with the added twist of As one respondent replied, “People tend to hang on to their clubs creating different full privilege categories, such and their places of worship.” This, of course, is a theme for successas the “Rule of 90”, which is the sum of the memful clubs. They have created a place where the members are safe, ber’s age and years of membership. secure, and become very loyal. Once the member reaches 90 (or 100, 110, The same manager also shared that his parents were 60-year etc.), they have reduced dues, while maintaining members of a club, became infirm, lived out their lives in a nursing the same privileges. Some suggested that lower home and were still paying full dues! His point was that to this day dues mean loss of voting rights or that a member he resents the club for its callousness. There should be a way to do may sell their ownership and retain a non-voting, the “right thing.” non-equity membership at reduced dues. However, sometimes in trying to do the right thing a wrong thing A significant concern is that while trying to rears its ugly head. A club was doing the right thing in offering its retain dues revenue, clubs will try to entice a disaging membership categories of lesser dues and ended up with 250 satisfied member by creating a category that will non-dues paying, substantial club users out of 1,500 memberships! “hold” them and keep dues coming in. The problem was so substantial that they were facing ruin if an As one responder quipped, “Some dues reveadjustment was not made. They subsequently discontinued the catenue is better than no dues revenue, if the member gory and became financially sound. In this case, it appeared that the resigns.” Unfortunately, care needs to be taken decision makers, many aging into the created category, may have that reducing dues to save one, may have the been concerned with their own benefit and, while producing good unintended consequences of opening the door will, did not think of the long-term consequences as everyone aged! for others, who would not have required reduced The original question seems simpler and more in line with the dues to remain a member. managers parents’ predicament. Long-term members can no longer And, the member being saved may have lacked enjoy all the amenities but are still able to enjoy the social aspects: the stickiness of the club and will resign in the Should something be done for these members? SEE ON THE FRONTLINES | 97 86
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GORDON WELCH Gordon Welch is the president of the Association of Private Club Directors (APCD), the only association representing the club’s board. He can be reached at gordon@apcd.com or by calling (949) 376-8889.
BOARDROOM PERSPECTIVES
BoardRoom Bootcamp Sharing Some Basics The Boardroom is changing. New directors are attending your monthly meetings and it’s time to make sure everyone is on the same page. I hope you’re planning an orientation or retreat for your board, and by the way, a mandatory retreat is highly recommended! Even though you may be a well-seasoned board member, you are now also a mentor to your new directors. Here’s the biggest problem with new boards: There are no schools for board members. But all of you need to be equipped to succeed as a board. So, this issue, we’ll share some BoardRoom Bootcamp basics for new boards. The word “governor” comes from the Greek language meaning “to steer.” Interestingly enough, if you have five people in a car headed to a destination, they won’t always agree how to get there! Having a “steersman” is very important and has been for thousands of years. The board is the engine to the mission of the club. The board has four basic legal duties: Duty of Care, Duty of Loyalty, Duty of Obedience and Duty of Transparency One must “care” for the club or organization the way a “normally prudent person” would care for another – like a power of attorney. Board members must be “loyal” to the mission, keeping the interest of the club first and support the final decisions of the board – all while monitoring any conflicts of interest. Being “obedient” means to honor the state and federal laws and upholding the 88
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bylaws of the club, and finally, being transparent to the membership as to the decisions that have been made. Board members must exercise care in all dealings, including the careful oversight of financial matters, reading of minutes and decisions that are of concern to the club and your members. Many people ask me about governance versus management. Here is the difference. Governance selects, evaluates and supports the GM/COO. The board members are like sweepers on a curling team preparing the way, so the mission gets down the field. Governance sets the priorities for the club as well as strategic direction. It also makes major decisions such as policy, buying and selling property and adding programs to the club’s activities. Governance sets what we want to do. Management enforces policy, hires and manages staff and communicates to the board with candor and transparency. Management may seek the board’s counsel and will recommend new directions and goals for the board to consider. Management sets how we do it. There are many personalities on a board. Sometimes these personalities click and sometimes they do not. In my experience as a GM/COO I enjoyed various styles of leadership. With board presidents, I always enjoyed a board president that was in control of the meeting. I called them eagles or generals. They are in charge. They have done the work before the board meeting and have checked in with their board members to make sure they are prepared. This individual will get work done and in a timely manner. I have also worked with board leadership operating more like a camp director. These leaders want everyone’s input at the board meeting. They come prepared to the board meeting with a list of questions for everyone. They like to “hug it out” and sing cumbia. This is not my favorite approach. This takes time and is very frustrating – at least for my personality. As a board member, you may see these nine different personalities setting around the table – and a few others as well. 1. The analyst: They like to review everything; check with other clubs to see what they do and look up some national averages. They pull things apart. Investigate subcomponents. They possess a healthy degree of skepticism. Devil’s advocate questioner. Helps make sure they’ve thought something through and considered the details.
2. The facilitator is patient, loyal, sympathetic…a team person. They like to make sure everyone is heard and understood. They keep things on time, on track, and moving in the right direction. Sometimes this is an official role, like the board chair, but sometimes that can come from any board member with an aptitude for conducting a well-run meeting and keeping conversation and agendas on track. 3. The reframer takes what you have said in your words and translates to their words (paraphrasing) for everyone to hear so they can “better understand” what you have said. They listen to conversation and bring conversation around to productive action. Auditory learners tend to be good at this. Reframers can take the skepticism of the analyst and push their questions into new realities and ideas. 4. The synthesizer is a “combiner of information.” They like to take bits and pieces of information from everyone and come to a consensus. They put things back together that either come not fully formed or have been “taken apart” by the analysts. 5. The peacemaker wants everyone to feel good about themselves and the decisions they will make. They also clarify positions.
6. The coach is behind everyone at the meeting telling them what a great job they are doing, pushing them harder. They encourage us. The coach embodies a positive attitude and belief in the board and club. Can help the analysts feel confident when not all the details are in place. 7. The caller has the fortitude to “call it out.” Helps a board get beyond the “culture of nice.” 8. The observer: of course, they like to watch! Sees what happens. Helps to build a culture of inquiry on the board. Observes and comments on what they see. 9. The unprepared is the WORST! They come to the meeting late, haven’t read any of the materials and want to be “brought up to speed” as to what they missed. This individual needs a swift kick in the pants and they need to be prepared or asked to leave the board. Your time is valuable and appreciated! You should be prepared to take part, or you should not serve on a board. It is important to achieve balance in the board room – even with the personalities you will be working with. Good luck! As you go through the transition please let us know if you need help! You can connect with me at (918) 8952723 or gordon@boardroominstitute.com B R
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978-827-3103 NOVEMBER/DECEMBER 2019 | BOARDROOM
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KEVIN F. REILLY
R. TODD SWISHER
CLUB FACTS & FIGURES
Financial and Lifestyle Trends Defining the Club Industry For the club industry, 2018 was a good year. Member spending was up and the best it has been since 2010. To date, membership continues to grow, but at a very slow pace. The economy in general has seen a bigger divide between the haves and have nots and the income disparity continues to increase. While clubs have seen the same trend, the A-list exclusive clubs have seen a notable increase in new members over the last few years. However, this is not true for all clubs as the second level clubs are still struggling. The market is oversaturated in some areas of the country where there is more competition. Since 2006, we have seen more clubs closing than opening and compared to 2018, eight percent fewer clubs exist today than in 2006. CLUB INDUSTRY TRENDS The picture of the club industry continues to evolve. In the past, we talked about the importance of a club remaining relevant to its members. Clubs now have to figure out how to adapt to a changing demographic as Millennials represent the largest age group in the United States. From an industry dominated by member-owned private clubs, many more participants are involved now. The Topgolf® concept has revolutionized the industry. While that golf business is not a club, it is competition for the entertainment dollar. In fact, many clubs are incorporating that exact type of entertainment into the club, as well as offering indoor golfing. Seasonal clubs are looking at their facilities to see how they can make the club more appealing in the off-season. City clubs are taking advantage of the reverse migration into the urban areas while figuring out how to embrace what the new generation of city dwellers want. CLUB DEMOGRAPHICS Club demographics continue to change as well. How do clubs recruit women, juniors and those who are new to the golf and/or club environment? The National Golf Foundation indicates the number of females, juniors and other young adults playing golf has remained consistent over the last five years. While the category of young adults is the largest age segment in golf, more than 40 percent of this group are only off-course participants. What can the industry offer to bring these young adults into the club community? Generally, the successful clubs are those addressing this issue creatively. Clubs have become more family friendly over the years and realize they must continue to evolve and change if they are to be successful. 90
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CLUB ECONOMY AND EMPLOYMENT The economy is improving, and unemployment is the lowest in years. Finding and keeping good employees, particularly in the urban areas, is the biggest issue facing clubs today. As the hospitality industry overall continues to grow, the competition for quality individuals continues to increase. Prospective and even existing members debate on whether they should spend the funds to join or to remain a club member.
COUNTRY CLUB STATISTICS Country clubs have exhibited steady revenue growth over the past five years. One of the main drivers of the member revenue increase in 2018 was a 6 percent increase in membership dues. • Overall member spending has increased on average 3.4 percent over the last five years. • Country Clubs reported member spending increased 4.9 percent in 2018, the highest increase since 2013. • Spending increased by only 2.5%. • Boards are raising dues again. CITY CLUB STATISTICS City club operating results comes from the core operations that witnessed a nice surge in 2018. Revenues saw a whopping 9.3% growth over 2017 while expenses were up a modest 4.9%. When the economy is good, city clubs follow suit as seen over this period.
• Club dues are normally the leading source of revenue (43% - 45%) and only saw a tepid 3.8% growth in 2018. • The average increase over the last five years was 5.3%. • Discretionary sales from food and beverage and other sources had an amazing 13.9% increase • Members were going out more often and saw their spending increase over $400 annually to just under $2,500 taken together.
These highlights show while clubs have done a great job on controlling expenses, increasing revenue continues to be an issue. Successful clubs find a way to get their members to use the clubs more often and spend more while there. PBMares has been publishing Clubs in Town and Country, an annual statistical review incorporating operating and financial data on private clubs, for more than 65 years and every edition is full of interesting statistics. It is a reference and management or operational aid for private clubs. Download the 2019 edition of Clubs in Town and Country at https://www.pbmares. com/resources/knowledge-center B R Kevin F. Reilly, an attorney and CPA, has been in the hospitality area and clubs in particular for more than 30 years. He is a partner in the firm of PBMares, LLP and is located in the Fairfax, VA office. You can reach him at 703 3858809 or by email at kreilly@pbmares.com. R. Todd Swisher, CPA, CGMA is an assurance partner and leader of PBMares’ hospitality team and is located in the Richmond, VA office. You can reach him at 804 323-0022 or by email at tswisher@pbmares.com.
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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
CHAIR MANUFACTURER
CONSULTING COMPANY*
GARY PLAYER EDUCATOR
CHILDREN’S PROGRAM
CONSULTING COMPANY*
DAVE WHITE EDITORIAL AWARD
CLUB FITNESS PROGRAMS
CRM
JOHN FORNARO IMPACT AWARD
CLUB LODGING
CUSTOM DESIGN HOSPITALITY UNIFORM
NEW PRODUCT - ON BOARDING
CLUB MANAGEMENT SOFTWARE
CUSTOM DESIGN OUTDOOR FURNITURE
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CUSTOM LIGHTING DESIGN
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CUSTOM UPHOLSTERY FIRM
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DATA PRIVACY SOLUTIONS
CLUBHOUSE RENOVATION
ELECTION MANAGEMENT SYSTEM
Peacock + Lewis Architects and Planners, LLC
CLUBHOUSE RESTORATION
EXECUTIVE SEARCH FIRM
BUSINESS INTELLIGENCE SOFTWARE
CLUBHOUSE RESTORATION MASTER PLAN
FACILITY ENHANCEMENT ANALYSIS
Crystal Thomas
Lynne LaFond DeLuca Richard Kopplin Ray Cronin
Pipeline Marketing
AMENITIES PROVIDER
Sports Solutions ASSOCIATION
PGA of America ASSOCIATION PROGRAM
PGA REACH
BAR & LOUNGE
Jonas Club Software
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Eustis Chair KE Camps
1000 Hills Fitness
ClubDesign Associates Jonas Club Software EA Photography Signera
Marsh & Associates | MAI (Columbine) ClubDesign Associates
McMahon Group
RCS Hospitality Group Jonas Club Software High-End Uniforms
XHIBTZ Contract Furnishings
Castor Design Associates, Inc. Style Upholstery CRS Privacy
Survey & Ballot Systems
Studio JBD and Jefferson Group Architecture Kopplin Kuebler & Wallace Lichten Architects
Clubwise Consulting, LLC.
FITNESS EQUIPMENT
LAW FIRM
POOL COMPLEX
FOOD & BEVERAGE TECHNOLOGY PRODUCT
LAWYER
PRIVATE CLUB BRANDING FIRM
FURNITURE MANUFACTURER
LINEN PROVIDER
PURCHASING COMPANY
GOLF COURSE MAINTENANCE FIRM
LOCKER COMPANY
REAL ESTATE SERVICE
GOLF COURSE MANAGEMENT SOFTWARE
MANAGEMENT COMPANY
RESORT AND HOTEL MANAGEMENT SOFTWARE
GREEN PRODUCT*
MASTER PLAN
STAFF APPAREL
GREEN PRODUCT*
MEMBERSHIP ENGAGEMENT TOOL
STAFF TRAINING COMPANY
IMMIGRATION LAW
MEMBERSHIP MARKETING
STRATEGIC PLANNING
INNOVATIVE ARCHITECTURAL PRODUCT
MEMBERSHIP SURVEY
SUSTAINABILITY PROGRAM
INNOVATIVE OUTDOOR PRODUCT
MOBILE APP
TAX CONSULTANT
INTERIOR DESIGN - DINING*
ONLINE TEE TIMES
TAX, AUDIT & ACCOUNTING
INTERIOR DESIGN - DINING*
OUTDOOR FURNITURE COMPANY
TECHNOLOGY PRODUCT
INTERIOR DESIGN - FITNESS & WELLNESS
OUTDOOR LIVING
TENNIS COURT BUILDER
INTERIOR DESIGN - LADIES LOCKER ROOM
PAYROLL PROGRAM
TERRACE DESIGN
INTERIOR DESIGN - MEN’S LOUNGE & LOCKER ROOM
PERFORMANCE MANAGEMENT ASSESSMENT
WEBSITE COMPANY
INTERIOR RENOVATION
POINT OF SALE COMPANY
YACHT CLUBHOUSE DESIGN
Technogym
FOOD-TRAK/System Concepts, Inc. Gasser Chair Company
International Golf Maintenance (IGM) EZLinks
BambrellaUSA, Inc. emersa WaterBox Pabian Law NanaWall
Dayva Industries
Castor Design Associates, Inc. Marsh & Associates | MAI Chambers Club Planning & Design
Bozeman Club & Corporate Interiors Marsh & Associates | MAI
Studio JBD and Jefferson Group Architecture (Green Book)
Addison Law Robyn Nordin Stowell Something Different Linen Hollman, Inc. Troon
C2 Limited Design Associates Newstation.com
Creative Golf Marketing McMahon Group
Northstar Club Management Software ForeTees
OW Lee Company
Peacock + Lewis Architects and Planners, LLC ClubPay
Paisano Performance Partners
Northstar Club Management Software
Chambers Club Planning & Design Pipeline Marketing
XHIBTZ Contract Furnishings Hilda W. Allen Real Estate Maestro
Ambassador Uniform RCS Hospitality Group
Strategic Club Solutions SES Lighting
Mitchell Stump, CPA PBMares
CedarCreek Systems Welch Tennis
Chambers Club Planning & Design Clubessential
Angela Grande Design & Hart Howerton
*DENOTES TIE NOVEMBER/DECEMBER 2019 | BOARDROOM
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GREGG PATTERSON Gregg Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com
TRIBAL MAGIC
Upping Your Like Factor Doing Funeral
I attended three funerals recently. Each was for a member of my club and each was sad, each was life affirming and each was a powerful expression of club as a “community of caring.” Lots of love was exchanged, lots of hugs were given, lots of comforting words were spoken, lots of tears were shed and lots of memories were shared. Emotional stuff. The stuff of club. After each of these funerals, family members and club members spoke to me about my attending and what it meant to them to have me, their GM, there during such a difficult time. I felt the love. I experienced Big Like. Each of these funerals were a powerful reminder of why club means so much to members and to club professionals like me. Emotional stuff. The stuff of club. All of which got me pondering about the power of Big Like in a manager’s career, how the funeral “journey” can enhance a GM’s Like Factor and how a high Like Factor contributes to a manager’s personal happiness and professional success. Which got me wondering. Why were none of the managers from their other clubs (and each of these members was a long-time member of at least one other big-time club) there in attendance to get the hugs, to give the hugs, to feel the love and to experience big like? Too busy with financials? Too wrapped up in wine tasting? Too busy being busy doing business? Indifferent to the power of like in a club manager’s career? I began to ponder life moments – births, deaths, graduations, marriage – and how important those moments are to members, staff and people everywhere. It was clear to me that acknowledging and affirming those moments makes people feel good and we all know that when someone makes others feel good, they’re remembered, fondly. The manager’s like factor goes up, and the job of managing gets easier, more effective and more satisfying when people are emotionally connected to the GM. Managers who want to “do good”, to last a long time and to make the big bucks need to take advantage of “feel good” life moments to give their like factor a big boost. Funerals are a case in point. 94
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DOING FUNERAL RIGHT
A member’s funeral is an enormous source of “feel good” and a huge boost to a manager’s like factor. Certain steps should be followed to get the most like from the funeral experience. Visit – If possible, the manager should visit the dying member in their home, assisted living facility or the hospital before it’s too late to do any visiting. Even if the dying member is unconscious, they’ll be aware of your presence. And the family who’ve gathered will remember your visit, warmly. Commiserate – When the member passes, the manager needs to call and to write. And when appropriate, food should be sent to the family to tell them, “we care, are thinking about you and know that cooking is the last thing you want to do during this difficult time.” Plan – Hopefully the memorial or the post-service reception will be held at the club. If it is, the manager should make a point of sitting in – at least for a bit – during the planning of the memorial experience. As a professional, you, the manager-friend, can give advice on the questions that need asking: Where the memorial service will be held, where the post-service reception will be arranged, what type of music will be played, the sequence of events, the photos that need to be taken, who should be speaking, what photos will be displayed, food to be offered and the drinks to be served. People are confused and diverted when a loved one passes, and a bit of guidance during a difficult time is appreciated and remembered. Attend – The manager and key staff should attend a memorial service whenever possible. Greet the family before the service begins and greet them after the service has ended. Shake hands, give hugs and say comforting things. Let the family and all the members in attendance know you were there and showing you cared. And for retired managers who are living in the area, attend the service and the reception and let everyone know that “caring” is what club people do during and after their management days have ended. And, if circumstances are such that you the GM can’t attend, let the family know and tell them why and assure
them that a management representative will be in attendance! Participate – And for a special boost to the manager’s like factor, and if the manager has been a long-time important part of the deceased’s life, they should offer to speak at the service or during the reception. Being a visible and caring participant during the memorial does lots to boost the like factor. Greet – On the day of the memorial following the service, the manager should be a presence in the lobby greeting the grieving relatives and the guests as they arrive at the club. Being front and center on arrival is critical because the GM is the symbol of the club and the values embodied in the club experience. Mingle – At some point during the reception, the manager should visit the location and mingle with the attendees. Show the flag, be visible and connect. Good-bye – When people exit, the manager should be in the lobby thanking people for attending and being part of the memorial experience. The last “touch” may be the meeting attendees remember most vividly. Post Service – After the service, the manager should send another note commenting on the service and letting the family know that the memorial was special and a wonderful testament to the dearly departed. And keep in mind that this sequence of “should dos” is, in slightly modified form, applicable to any of life’s great moments. Weddings. Birthdays. Graduations!!!
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BOOSTING BIG LIKE
Life moments are important and what’s done to acknowledge, assist and celebrate those moments is long remembered. Making members feel special during those moments will boost the manager’s like factor. And if people like the GM, they’ll trust the GM. And if they trust GM they’ll support the GM. And if they support the GM, the GM will keep their job, make more money and…enjoy the journey! B R NOVEMBER/DECEMBER 2019 | BOARDROOM
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LEGAL COMMITTEE BY ROB HARRIS
Home Purchasers Rejected for Membership Sue Real Estate Broker and Agent Looking forward to the next chapter in their lives, Michael and Jenny Dubasso purchased a retirement home in LaQuinta’s Tradition community, attracted in part by the opportunity for membership in the Tradition Golf Club. To their chagrin, however, the Dubassos were rejected for membership for undisclosed reasons. More to the point of the litigation that ensued, the Dubasso’s claim to have understood that membership was automatic for community residents. The couple thereafter brought suit against the real estate brokerage firm and agent who represented them in their home purchase. As a California appeals court explained: Plaintiffs brought this action for money damages against defendants for their alleged failure to disclose to plaintiffs—before plaintiffs entered into their contract to purchase their Tradition home—that club membership was not “automatic” for Tradition homeowners, but was, instead, subject to a “vetting process” by Tradition’s membership committee. Plaintiffs allege defendants either intentionally or negligently breached their fiduciary duty to plaintiffs by failing to discover that plaintiffs did not wish to purchase their Tradition home unless they could be club members, and to advise plaintiffs to make their purchase contract contingent on Tradition’s approval of plaintiffs’ club membership application. As is often the situation in contested matters, the facts are disputed, if not murky. Certain documents that the Dubassos received prior to purchase suggested that club membership was not necessarily a given. On the other hand, the agent allegedly promoted the club opportunity by encouraging Mr. and Ms. Dubasso to visit the club where they had a “warm and welcoming” meeting and tour of the facilities with the club manager. The Dubassos purchased their Tradition home for $2,000,000, and by the time the litigation unfolded the value had dropped by $200,000. The trial court rejected the Dubassos’ claims, finding that the written materials they received “clearly” advised that the club “sets [its] own terms of membership”, and that 96
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they could not impose upon the broker and agent the legal responsibility to ensure the Dubassos were aware that membership was not automatic. The appellate court, however, granted at least a temporary reprieve, holding that the Dubassos were entitled to a full airing of the factual evidence. Acknowledging that the written materials “plainly notified plaintiffs that membership in the Tradition golf and social clubs was subject to the golf club owner’s discretion”, the court noted that the materials “did not expressly inform plaintiffs that golf and social club membership was subject to a vetting and discretionary approval process.” According to the court, “We do not think that the general language used in the [written materials] was sufficient to excuse, as a matter of law, defendant’s obligation to inform plaintiffs in some manner of a fact that defendants were actually aware of: that the golf club might reject plaintiffs’ membership application even if plaintiffs were willing to enter into the required membership agreement, pay the membership fees, and meet any articulated membership requirements.” The court also noted that, as to other purchasers, the broker and agent had included provisions in the purchase contract making the transaction contingent on being accepted for membership. Coupled with the defendants’ awareness that the Dubassos were interested in membership, this fact created an issue of whether the defendants had breached a duty to the Dubassos. Accordingly, the appellate court determined that the case should be sent back to the trial court for a full determination of the issues. Specifically, “there are triable issues of material fact whether (1) plaintiffs’ acceptance as club or social club members was a material fact affecting their decision to enter into their purchase contract for their Tradition home, and (2) whether defendants breached that duty by failing to inform plaintiffs that there was a vetting and discretionary approval process for club membership before plaintiffs entered into the contract to purchase their Tradition home. These triable issues are relevant to each of plaintiffs’ causes of action, including the first cause of action for fraudulent concealment.” B R
from Hirsh - Executive Committee | 34
from Martin - Executive Committee | 38
existing and potential market position through sound market intelligence and objective analysis. All clubs have wish lists. All clubs need to move forward. Sound decision making requires forward vision, from the perspective of present and future members and with consideration for both the advantages and disadvantages of any project, including future anticipated benefits and challenges. Just like the pilot considers the weather enroute and at their destination, club leaders need to consider all these elements when planning future improvement projects at their clubs. Just like a distressed club can suffer from doing nothing, even the most desirable and successful clubs can get caught over-improving or a poorly timing a project. Below is a checklist for information needed before making decision on club improvements: • Competitive market survey/analysis • Economic analysis • Site and facilities analysis • Geographic member analysis • Financial history analysis • Membership history • Cost estimates • Club activity analysis • SWOT analysis B R
found out that he had the person in place all along and was mentoring him to take over, which Matt has done very successfully. When passing the baton successfully to that well qualified professional from within the organization, it may, and can lead to being rewarded for saving the club tens of thousands of dollars to conduct a national search for your replacement. As a departing general manager why not negotiate to stay on as an advisor to the club for a period of time to ensure a smooth transition. This pathway allows the new general manager and the board to continue using your knowledge and expertise they have relied on for so many years. BR
from Membership Musings | 76
If your staff isn’t happy to be there, your members aren’t going to be happy to be there either. Or as my dad always admonished, If mama ain’t happy, ain’t nobody happy.” The delight concept must be part of your club’s core values so it is imperative that you make sure your team fully understand the why of delightion. And, involve all of them in outlining the members’ customer journey. They will often spot delight opportunities that you haven’t even thought about. After all, they are the frontline troops. To help put this all this in perspective, take a minute to watch (or re-watch) the famous video clip, The Secret of Service Johnny Bagger Story. (https://www.youtube.com/ watch?v=sepARXV8MRI). You will be glad you did. And… Your bottom line will thank you! B R from On The Frontlines | 86
near future regardless of the lower dues. Now, the club increased its membership categories from 48 to 49 and had over-all reduced revenues – not the intended result. Being empathetic is part of having a strong family. Clubs should take care of their own and that includes those aging out. However, we need to be careful about the underlying reason for considering a new category, saving a resigning member by offering lower dues may not be the best solution. BR
from HR Committee | 77
ALWAYS TRAIN When a club upgrades their employees’ skill set through company training it heightens the staffs’ productivity and motivation because they work even harder, and at a higher level, plus they also care more about their coworkers and the growth of the club. Moreover, it shows the staff how much management appreciates them which boosts retention. Additionally, when employees are taught new skills or better ways of doing their job they want to share what they learned with the team. And, it inspires them to come up with ways to improve procedures. The advantages of acquiring new skills is also an effective reason for seasonal workers to return. Cross-training ensures employees are flexible, efficient, and capable in more than one aspect of the club. It’s also beneficial when it comes to scheduling and filling in for absences plus it cultivates team spirit since it helps the employees understand the challenges their co-workers face. Enabling your employees’ development ensures you’re creating future leaders for your club who are adept at inspiring growth, change, and innovation. The most productive and prosperous businesses produce their own leaders through training and development. Also, most employees are loyal to and stay long-term with companies that provide that career path. Training is also a recruiting tool for potential employees as well as potential members, who are impressed by companies that help their staff grow with the club. Club members prefer to join a club that invests in their employees over one that doesn’t. Additionally, internally promoted employees usually perform at a level that far surpasses those who are hired externally. Furthermore, cover the cost of your employees’ certifications. Having certified employees boosts your club’s credibility. It indicates how much you care about your members and that they can count on you to stay up to date with the latest standards and offer as much if not more than other clubs. What’s more, your certified employees can hold workshops for their team or the entire staff to share what they learned, which escalates the return on your investment in them. In conclusion, you can see that when you invest in your employees they will drive your company to success. It’s an investment your club is guaranteed to reap rewards from. BR NOVEMBER/DECEMBER 2019 | BOARDROOM
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CHRIS BOETTCHER Chris Boettcher can be reached at chris@boettcher.com and currently doing hospitality consulting.
CLUB SERVICE
Do You Want Your GM To Last? Every board member should be thinking about that: How long will my general manager (GM) last? Do we have a succession plan? What would make them leave? Why would they ever want to leave this great job? What keeps our assistant general manager engaged so we have a back-up? No one wants to go there, right? I mean, it’s a hard discussion to have one-on-one with your chief operational officer but it should be considered for obvious reasons. Would you do it for the multi-million-dollar business you run? Do you think it happens with the CEO’s of top fortune 500 companies? Here’s an interesting factoid from a seminar at the recent Club Management Association of America’s (www.CMAA.org) worldwide conference – Fortune 500 CEOs have an average tenure of nine years in their positions. In the private club position, call it chief executive officer, general manager or head-busboy – it makes no difference – the average tenure is 3.5 years. That’s up a whole 0.5 years since the beginning of my 20-plus years as a CMAA member. Lots of excuses are bantered around for the reasons behind the differences, i.e. less prestige, more pay, more opportunity, rotating leadership or just finicky members. I’d throw in a number of theories based on my experience in the service industry, but the over-arching reason for managers in my industry leaving their positions is micro-management. But there also are other reasons that deserve exploring: Board tenure has always been an issue. The volunteer leadership is a crucial aspect of a club manager’s reason to stay or go. It’s their governing body, so each month, or more often, they are holding managers responsible. It’s how that is done that’s more important than tenure. I’ve had club experiences where there are lifetime assignments on the board, three-year assignments and one-year assignments. They all have their issues. Staff acceptance is another hard factor for managers to deal with. Club managers usually can’t come in and summarily terminate the management team or club employees. Many times, it’s the opposite situation – where a manager must win over senior and line staff. Fortune 500 CEOs are usually executing the top staff before they even hit the door. That approach in our industry can be dangerous. So a lot of the time, if the melding of staff does not work, the manager will go. Big or small shoes, tenure of the predecessors has been claimed as a factor too. I have followed two long-time manag98
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ers at the five clubs I’ve worked at as general manager. One was a 25-year veteran as GM and had worked at the club 35 years after being promoted from a locker room manager to GM. The other was a 33-year manager who built a great culture. In my other clubs as a general manager I once replaced a GM who had been there about seven years and the other two clubs, I replaced managers who had not been general managers before. One of those had actually upgraded himself from the threelegged-stool model of club management positions where the manager, golf pro and grounds superintendent each report to the board. He decided to promote himself to be a chief operating office over both other managers and then left. That caused some issues, but the tenure of my predecessors had nothing to do with my success or failure, or my willingness to stay or go. I’d bet the Fortune 500 people don’t have the personality pressure of day-to-day interactions with the multiple personalities that private club managers do. Interactions are crucial in our business and lead to the building of lasting relationships. That’s the real key to avoiding micromanagement, and what I think is the top general manager killer in our industry. If you don’t have a good relationship with your general manager; if you try to take control of details, get in the weeds of operations and ignore the signs of micromanagement, your general manager will move on. There’s no doubt. So how do board members keep from losing a good manager to the average tenure of our industry? Build the relationship of manager and mentor. Be the solid hitching post where a manager can safely park their issues and not be judged. Watch out for your committee chairs and committee members getting into too many details. They’ll drive your management team crazy if they get too much in their business. One club I know of, had 40 committees - something for everything, I guess. The poor manager had more meetings than days in the month. Not a good situation. It degrades the management team’s sense of dignity. Solutions? Look closely at your actions and structure. Focus on the balance sheet and not the cost of carrots. Make sure your committees are hovering and advising at 10,000 feet instead of over one’s shoulder. Keep a close working relationship alongside your general manager, not adversarial, and focus on the strategic direction of your club while making sure your members play nice. That’s the best way for the governors and directors of private clubs to Lead ON! B R
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“Brand is everything,” injected ClubMark’s CEO Rick Coyne. “Luxury brands exude total quality, inclusive to a culturally diverse consumer and generally with costs relative to the experience. “Clubs serve two markets – their existing members and those that are not yet members. Everything that a club does internally for its existing members is projecting to potential members what they can expect.” Coyne feels it’s vitally important to know your market before branding your club. “You shouldn’t plan a brand until you fully understand your market. Club communities that brand in a luxury lifestyle are generally positioning similar to a high-end resort. Clubs too can likewise position, but if your market cannot afford a luxury brand it would be foolish to try. “The only way a club should position itself with a luxury brand is if the market supports the position,” he explained. “Clubs like any luxury brand have customers, or in a club’s case members who have a choice,” intoned Tom Neill, president of Private Club Historical. His Laguna Beach, CA firm curates, discovers and designs historical displays, exhibits, videos and photography, highlighting a private club’s unique history. “What’s unique and extraordinary is the connection between the club and its members. No other luxury brand has a relationship like this. So it’s imperative the behavior parallels the fact that it’s the members who own the brand and by respecting them, listening to them, you earn their trust. “Through my experience,” Neill added, “I clearly see two entities of branding: external and internal. “External as represented by tangible items such as logo marks and websites, but more importantly for a club, is internal emotional branding as represented by a member’s pride in their club. For example, this can be accomplished by historical displays and exhibits featuring past and current members and is important for creating a cohesive positive member experience,” Neill suggested.
When branding is effective, it creates a buzz. It’s about the four Es – emotion, experience, exclusivity and engagement. Does having a strong brand attract new members and staff? Absolutely. Does having a strong brand attract referrals? Absolutely. Does having a strong brand increase the value of an initiation fee or justify the dues? Absolutely. George Stavros, principal Pace Setter Technology “It’s important because each club has its own unique brand, its own history, its own character, its own thing that it should be known for,” stressed Keith Jarrett, president of BoardRoom’s Distinguished Club program. “And the most successful clubs highlight their brand throughout the walls and displays of their clubhouses.” There’s a general consensus benefits accrue with a luxury lifestyle brand. “The club will attract the communities most influential and important people. The city’s major events will be held at the club. Major decisions affecting commerce, politics and social issues will be made at the club,” Gore suggested. “Once the club is associated with a luxury brand the club’s image is enhanced, important people will consider membership in the club and the club can attract top talent for department heads and other important staff positions,” he added. “The benefits are numerous, especially the benefit of a member belonging,” Neill stressed. “It’s the belonging to a brand that creates the greatest impact upon the member. It’s the unique sense of accomplishment and achievement and that they have arrived at their goal. “By belonging, this brand emotion manifests itself when justifying initiation fees, dues and assessments,” he expressed. Coyne however, cautioned, “Unless the market is capable of affording a luxury brand, there is no benefit to your club trying to supply something the market cannot afford. If the market can sustain a luxury brand, you will stand out in the marketplace.” And if “the market can afford a luxury lifestyle brand, the benefits are attractiveness to a discerning market capable of affording the fees endemic to the experience,” Coyne explained. What about younger generations? Will luxury branding make any difference for these younger, potential members thinking about private club memberships? ➤ NOVEMBER/DECEMBER 2019 | BOARDROOM
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from Publisher’s Perspective | 99
The sheer number of younger people and their interest in brand name products does make that likely. For example, Pace Setter Technology suggests there are 12 million Millennials considering taking up the game of golf. So what’s the private club industry doing to attract them and are Millennials more influenced by branding and the product names. “Indirectly,” suggested Pace Setter’s Stavros. “They are more influenced by relevant consumer feedback. Millennials are far more likely to get a recommendation or confirm through online reviews. When branding is effective, it creates a buzz. It’s about the four Es – emotion, experience, exclusivity and engagement,” he injected. Does having a strong brand attract new members and staff? “Absolutely.” Does having a strong brand attract referrals? “Absolutely.” Does having a strong brand increase the value of an initiation fee or justify the dues? “Absolutely,” Stavros maintained. “The younger generation has always enjoyed associating with the most admired trends, products, and brands,” Neill commented. “It’s how they feel about a company, it’s rational but mostly emotional. “Social media has also expanded the brand’s communication through multiple channels. Many of these channels can track where you came from and are going, and use incredible algorithm to communicate and hone a brand to the user. “Younger generations, or future members are exposed to this like never before,” Neill added. “The logo, the graphic elements are simply a visual and emotional cue, which I call an ‘intertangible’, the moment the visual transitions to the sublime and the emotional branding takes over. “A club’s strong brand, a high-end, luxurious look will attract new members and win the hearts and minds of those who are seeking to join their first club. By offering them a luxurious experience, this will appeal to those who are now in the market for an added benefit to their lifestyle. “However, a major part of a club’s brand is its history and for many, we see clubhouses, which look like a hotel chain lobby. There is nothing on the walls or any exhibits, which depict the club’s historical significance and more importantly, the member. “Clubs that do have this historical presence use their displays as their premier tool when touring prospective members,” Neill stressed. And does a strong brand attract both new members and staff? “This has been validated many times. The brand specifically may not attract new members, but when a member is proud of their club, they refer friends and business associates to membership. A strong luxury brand creates pride in belonging the basis for referral,” expressed Frank Gore. 100
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“A historical display depicting a club’s history can embolden a strong internal emotional brand identity,” Neill explained. “This in turn, sparks pride with members and a sense of belonging and this is relayed to referrals. Imagine having 500 member tour guides! “Yes, a strong luxury brand increases member usage and pride. Member pride can solve a lot of a club’s challenges by justifying initiation fees, dues and assessments,” Neill concluded. PUBLISHER’S FINAL THOUGHTS
The next generation of members, the Millennials, are branding fanatics. They buy Apple products, wear Nike and drive BMWs. This generation has been raised on branding, and I believe to reach this next generation of private club members your club must stand out. Your club needs to have a strong brand. And not just a strong brand, because by the time Millennials can afford to join your club your club needs to be a luxury brand. There are myriad reasons why. For years, my wife has been buying Louis Vuitton purses. I’ve always wondered why, because 90 percent of each of these purses is made of canvas, not even leather. Yes, there must be some appeal, yet they all look the same. Louis Vuitton is written all over each purse and is very expensive. So what’s the appeal? She buys Louis Vuitton, I believe, because it makes her feel good. She feels she has arrived. And that’s no different than your members when they join your club. They feel like they have arrived. They enter your club with a feeling of pride and accomplishment. When you walk into a Louis Vuitton store, there’s a feeling of luxury, exclusivity…the stores look classy, staff is very well trained and professional. The walls covered by photos of 100-year-old luggage…pictures of Louis Vuitton suitcases on old cruise ships, in antiques cars, and the like, giving an air of longevity and exclusivity. When you are in their store you feel as though you are in a special space…with the products that ooze history and distinction. I mention the Louis Vuitton store as an example because the key aspect to branding and treating your club as a luxury brand is that people feel they are in a special space when they walk into your club. It’s the way they want to be seen and treated. Many clubs today look like a Marriott hotel lobby, and when walking in the front door that’s the feeling one gets…not that there’s anything necessary wrong with a Marriott hotel, but it’s certainly not a luxury private club. I’ve actually seen the same pictures on the walls at three different country clubs…all with similar interior designers. Or they have pictures of flowers and maybe even pictures of some other golf course, not that there’s anything necessarily wrong with flower and golf course pictures, but… Cover your walls with history, picture and artifacts from the past, from previous members, events and guests. Show your members your club is proud of its history, because you want prospective members to feel and know they are in a special place. Remember, clubs are selling more than the functional product (for example, a clubhouse, tennis courts and a golf course) itself. There is something else, and it’s symbolic. Clearly it’s the identity, the intangibles, which the club confers upon each and every member.
Some members might see their membership as being of superiority. I believe it’s common for luxury brand customers to sense that link to something special. It may be a link to a story, a founder, or a creator or a specific time. But, it’s something special. I also believe many buy luxury products because of authenticity. Today, more than ever, people feel dislocated from any sense of authenticity. Walking into and around your club you must feel the purity of belonging to ‘this’ club, which sends a message saying, ‘this is something you can be part of’, to which you say, “This is something I can and want to be part of.” In recent years, we have visited hundreds of clubs and a common message we have received from club staff and management is this: We are the home away from home for the members. We are there second home and so on. But it’s also interesting in that many of the clubs we visited don’t look like a home…they look and feel like hotel lobbies. When you walk into one of your members’ homes, you see history. You see photos of their trips, their family, present and past, and mementos from the past. You can tell a lot about a member by walking into their home. Shouldn’t the club really look like a home away from home? The only difference is that your club members are the family, the history is the club’s history and the mementos are from the club’s past. Branding your club like a luxury brand will help you in many ways. Membership recruitment, retention, and the feeling of community it provides. How do you currently defend the price of your initiation fee? The board sets the price or the member sets the price, based on what? A luxury brand. Treating your club like a luxury brand will make it easier for you to defend the price, which of course, increases not only the value of the club, but also the value of the club to your members. At least, that’s the way I see it. BR John G. Fornaro, publisher
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(954) 614-1505 | XHIBTZ1@XHIBTZ.COM | WWW.XHIBTZ.COM BOARDROOM MAGAZINE ADVERTISING INDEX ACCP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Addison Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Ambassador uniform . . . . . . . . . . . . . . . . . . . . . . 67 Amish Gazebos . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Angela Grande Design . . . . . . . . . . . . . . . . . . . . . 29 BoardRoom’s Distinguished Clubs . . 85, 86 & 88 Boothe Group . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 C2 Limited Design Associates . . . . . . . . . . . . . . . 25 Castor Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 CC Tech Partners . . . . . . . . . . . . . . . . . . . . . . . . 103 Chambers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 ClubDesign Associates . . . . . . . . . . . . . . . . . . . . . 31 ClubLife Management . . . . . . . . . . . . . . . . . . . . . 39 ClubTec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 CMAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Concert Golf Partners . . . . . . . . . . . . . . . . . . . . . 61 Creative Golf Marketing . . . . . . . . . . . . . . . . . . . . 17 DEI Kitchen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Denehy Club Thinking Partners . . . . . . . . . . . . . 75
Distinguished Club Experience Book . . . . . . . . 57 emersa WaterBox . . . . . . . . . . . . . . . . . . . . . . . . 53 Eustis Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 FOOD-TRAK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Forbes Travel Guide . . . . . . . . . . . . . . . . . . . . . . . . 15 Gasser Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 GCSAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Golf Business Network . . . . . . . . . . . . . . . . . . . . . 3 Golf Management Solutions . . . . . . . . . . . . . . 102 Golf Property Analysts . . . . . . . . . . . . . . . . . . . . 55 High-end Uniforms . . . . . . . . . . . . . . . . . . . . . . . . 71 Hilda Allen Real Estate . . . . . . . . . . . . . . . . . . . . 95 HINT Harris Interiors . . . . . . . . . . . . . . . . . . . . . . 67 Jonas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 KE Camps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 KemperSports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Kopplin Kuebler & Wallace . . . . . . . . . . . . . . 5 & 33 Lichten Architects . . . . . . . . . . . . . . . . . . . . . . . . 27 Marsh & Associates (MAI) . . . . . . . . . . . . . . . . . . 19
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BOARDROOM MAGAZINE COUNTRY CLUB INDEX Colin Burns, GM, Winged Foot Golf Club, Mamaroneck NY
MacDonald Niven, MA, MCM, CCE, CEO, Lakewood Country Club, Rockville, MD
Eric Dietz, GM, Mountain Lake in Lake Wales, FL
Nicholas Sidorakis, GM, Southern Hills Country Club, Tulsa OK
Susan Greene, director of membership and marketing, The Oaks Club, Osprey, FL. Dr. Josh Weiss, President, Four Seasons Golf and Sports Club, Dallas, Texas Ron Haas, GM/COO, Moraga Country Club, Moraga, CA
J.J. West, GM, Monterey Peninsula Country Club, Pebble Beach, CA
Jim Kern, GM, Four Seasons Golf and Sports Club, Dallas, Texas
Anne Willcoxon, President, Moraga Country Club, Moraga, CA
Patrick King, GM/COO, The Army Navy Country Club, Washington, DC
Tad Willenbrock, President, Glenmoor Country Club, Cherry Hill Village, CO
Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club
John Young, President, Monterey Peninsula Country Club, Pebble Beach, CA
Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI Mike Mooney, GM, Naples Yacht Club in Naples, Florida
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C E L E B R A T I N G 23 Y E A R S O F E D U C A T I N G T H E P R I V A T E C L U B I N D U S T R Y ISSUE 286
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VOLUME XXIII NOVEMBER/DECEMBER
Vo l um e X X III, N o vem ber / Dec e m be r 2 0 1 9
PGA PRESIDENT SUZY WHALEY SAYS
“WE’RE BULLISH ON THE GAME.” 10 | PUBLISHER’S PERSPECTIVE
HOW DO PRIVATE CLUBS BUILD A LUXURY LIFESTYLE BRAND?
38 | EXECUTIVE COMMITTEE
GENERAL MANAGER SUCCESSION PLANNING IS STRATEGIC PLANNING
80-82 | INNOVATIVE IDEAS
FEATURE TO BOARDROOM MAGAZINE
92-93 | SPECIAL ANNOUNCEMENT
2019 BOARDROOM “EXCELLENCE IN ACHIEVEMENT AWARDS”