briefs your new “breed of Club Cat” By Bonnie J. Knutson, PhD.
Yes, I’m sure you are tired of hearing about Millennials. That’s okay, they are also tired of it. In fact, two out of three don’t even think that label even applies to them. But like it or not, this generational cohort is the 21st century’s powerful consumer engine, much like the Baby Boomers were following World War II. After all, they represent about 30 percent of the U.S. population with about $200 billion in direct purchasing power and $500 billion in indirect spending due to their influence on what others do, buy, and use. And this includes your club. But their influence goes beyond denim in the dining room, cell phones on the golf course, or making reservations online. They are a new breed of “club cat” that is looking to their clubs to offer them the opportunities to try things that they usually wouldn’t do or try. Remember that this generation is the most well-educated, well-travelled, technologically savvy, entrepreneurial, lessrestrictive, and diverse of any previous age group in human history. They are the new creative class and a club’s financial dream. The genesis of this new breed of “club cat” is thought to have begun about 1995 at the SoHo House in London. Since then, variations of this concept have taken hold worldwide. Zack
Bates, CEO and creative director of Private Club Marketing says, “We’ve seen a huge jump in the number of the new types of clubs coming online, as compared to the traditional model.” The hallmark of this new type of club is that it is the place where the younger, so-called creative class, chooses to work, play, and expand their horizons. “[They] offer people a discreet place to network and wind down, typically in cities where personal space is at a premium,” says Richard Cope, senior trends analyst at Mintel. “In an age of social media, people like to let others know where they hang out or which restaurants they eat at. So there’s an element of satisfying those peacock tendencies…It is also about expressing your individuality, so I think the emotional need for this is only going to grow.” (Sounds a little like Instagram marries the TV sitcom Cheers that ran from 1982-1993.) So as you think about the future, consider how elements of these newer social venues, like SoHo House, Common House, or The Hospital Club, might be incorporated into your club to attract this youthful Millennial member. And who knows, your “more senior” members might like them too. Your bottom line will thank you!
Table of Contents EXECUTIVE What an Amazing End to 2017 - p5 Training Reduces Turnover - p5 7 Ways to Prepare Your Club for Disaster - p7 ClUb CUlTUrE Your New “Breed of Club Cat” - p1 GoVErnanCE/board Communication is Key - p3 Micromanagement be Gone - p3 Traits of Excellent Board Members - p9 Are you Experiencing Volunteer Drift - p13 That Won’t Work Here! We’re Different - p15 mIllEnnIals Low-Handicap Millennial Golfers - p11 TrEnds Club Marketing - p11 Raising the Bar - p13
BRB
briefs
JANUARY/FEBRUARY 2018 VOLUME 3 | ISSUE 1
boardroom briefs is complimentary to boardroom magazine subscribers. This newsletter offers content that goes beyond the buzz, by surfacing and summarizing important industry information. Each issue will offer practical insights from industry experts with a focus on fit for boards, board presidents and paid management.
John G. Fornaro / Publisher dee Kaplan / Advertising
Heather arias de Cordoba / Editor dave White / Consulting
If you have a story idea, please contact heather@boardroommag.com or call (949) 365-6966. For more information please visit www.BoardRoomMagazine.com. Interested in advertising, please email dee.kaplan@gmail.com or call (310) 821-0746.
ConTrIbUTInG WrITErs and IndUsTry rEsoUrCEs Skip Avery / executive vice president chambers / savery@chambersusa.com Henry DeLozier / golf management consultant / hdelozier@globalgolfadvisors.com Bonnie J. Knutson Ph.D. / professor, The School of Hospitality Business, MSU / drbonnie@msu.edu Fred Laughlin / director, Global Golf Advisors / flaughlinaz@mac.com Frank Lucas, CPA / Tax Senior Manager, RSM US / Frank.Lucas@rsmus.com Jerry McCoy / president, Clubwise, LLC / CMAAMCM@msn.com Whitney Reid Pennell / president, RCS Hospitality Group / www.ConsultingRCS.com Craig J. Smith / partner, C2 Limited Design Associates / csmith@c2limited.com Ned Welc / partner, GSI Executive Search / nwelc@msrcc.com Gordon Welch / president, APCD / gordon@apcd.com Dave White / editor, BoardRoom magazine / whitepks@mac.com
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Communication is Key By Ned Welc
There are many reasons a club manager might lose their job. Board changes including improper succession, ownership changes, lack of a strategic plan, poor optics, and the famous “we have decided to go in another direction.” It might even be because a manager didn’t have a realistic view of their performance. A communication strategy is a best place to start and a great plan to ensure that termination doesn’t happen to you. Oneon-one dialogue with as many club members as possible, engaging them first in conversation is a great practice. You will learn a lot and demonstrate how much you want their input and perspective. If you practice management by wandering around, seek your employees’ input first, rather than just looking for an employee doing something wrong. To achieve visibility and endearment practice, become a club historian and share what you have learned. By becoming a good teacher, trainer and coach, members see that you help people grow; do not become complacent, work at becoming part of the fabric of the club. Members should not be able to visualize the club without you. Always maintain an executive presence but do not be afraid to roll your sleeves up from time to time. Scoop ice cream at a
family night buffet. It won’t kill you and you might have a great time doing it. Members and staff love to see that stuff! Your staff should be following you because they want to, not because they have to. Club directors can see the respect that you have earned and they will value you for it. Do not boast; let your staff and other members sing your praises. Every time you use “I” to start a sentence you have effectively lowered your status. If transition does occur, reject isolating yourself and engage more. There is nothing to be embarrassed about. Learn what you could have done differently, rid yourself of any anger and do not blame the club. Use all of the CMAA and other resources and let search firms know what your plans and career dreams are. Hire someone to create a digital presence for you and reach out to all of your contacts. Continue to attend educational opportunities and networking events. Never stop believing that you are the perfect fit for someone’s club. BRB
micromanagement be Gone! dIsTInGUIsHEd prEsIdEnT oF THE yEar: KEITH bErK, norTHmoor CoUnTry ClUb By Dave White
In general manager David Derfel’s mind, President Keith Berk’s participation in the CMAA’s pre-conference workshop, Executive Leadership at a Higher Level, presented by Kopplin, Kuebler & Wallace, reinforced his belief and commitment that the club’s board needed a ‘thought partner’ who handles the club’s day-to-day operations while allowing the board to focus on ‘big picture’ strategic issues. “Northmoor Country Club in 2017 held its first ever board retreat to begin the process of developing core values that define the culture and decision-making process, a mission statement and a vision statement,” explained GM Derfel, referring to change inspired by the club’s shift in its governance model. “No longer does the board feel obligated to micromanage department heads, and I think there’s a sense of relief that ‘GM David’ will handle ‘those things’ so the board can focus on ensuring Northmoor remains relevant in future years. “Keith brings a level of respect, wisdom, and positive energy to the boardroom that sets the tone for highly productive meetings. Healthy debate is encouraged, and Keith makes sure that everyone’s opinion is heard,” Derfel added. page 3
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“He’s always quick to remind everyone that decisions the board makes should be founded on their merit to benefit the greater good of the entire membership and never a particular constituency. Keith established a true forum for open and honest expression that always focused on ‘it’s all about the member experience.’ “Change doesn’t come easy and being tasked with the challenge to become the first GM/COO in the almost 100-year history of Northmoor has its fair share of ups and downs,” Derfel expressed. “But Keith Berk has been a pillar of support and an extraordinary collaborator in this first year of transition. His leadership and ability to affect positive change is inspiring and has provided me with the confidence
boardROOM briefs January/february
and conviction that we are moving in the right direction.” BRB Keith Berk, president of Northmoor Country Club, stands as BoardRoom magazine’s Distinguished Club President for 2017. The full story is in the 2018 January/February issue of BoardRoom magazine.
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What an amazing End to 2017! By Frank Lucas, CPA
There were a lot of positives that came out of last year. First of all, it was another year of low inflation, although the Federal Reserve is admittedly perplexed by this trend…so much so that the former Fed Chair Janet Yellen called it “a mystery”. It was the first time the Dow Jones rose 5,000 points in a single year. Lastly, and arguably the most exciting part of 2017, was the first major tax reform in over 30 years. The original thought behind the tax reform was to “simplify” the tax code. However, after the initial 80-page summary on the proposed changes was issued, it was clear the reform would do everything but simplify the tax code. It seems like in the blink of an eye we went from talking about tax reform, to the President signing the bill on December 22nd, to a whole new set of tax laws. Virtually no one was unaffected by the tax reform. The biggest winners from this tax reform are: • Corporations with a new highest tax bracket going from 35 percent to 21 percent and repeal of Alternative Minimum Tax • Pass-through business which are now allowed a deduction of 20 percent of business income • Wealthy individuals with the top income tax bracket going from 39.6 percent to 37 percent • The estate, gift, and generation-skipping transfer tax exemptions doubling to approximately 11 million dollars Unfortunately with the winners, there are always some losers. Any individuals who pay a lot of state or property tax will find that their deduction is now limited to $10,000 for state and local property, income or sales taxes. States like California and New York will be hit hard by this part of the tax reform. Also, any individuals who currently have a home equity line on their house will find starting in 2018 that this is no longer deductible as mortgage interest. The standard deduction is doubling for both single and married individuals, which is positive, but individuals who had a lot of children or dependents will find their total deductions going down. This is due to the repeal of the personal exemption, which was approximately $4,000 per
individual, per year. This would mean a family with two children that took the standard deduction in 2017 would have gotten a total deduction of $28,000 ($12,000 plus four exemptions of $4,000). Now that same family is going to receive $24,000 from the standard deduction alone, which is a $4,000 reduction. Additionally, corporations will now be limited on the use of their NOLs to 80 percent of taxable income but will be able to carry forward any unused NOLs indefinitely. So we can call that one a wash. What does this mean for private clubs? Virtually all private clubs are subject to the corporate income tax rates. This means that any club, which has taxable income, will now pay 14 percent less. Private clubs within gated communities might find their incoming members complaining about a decrease in the deductible home mortgage interest from $1,000,000 to $750,000 on the purchases of new homes. Also, these members will no longer be able to deduct their home equity line of credits. However, on the positive side, they might be happy to know that the limitation on overall itemized deductions has been suspended. Last and most importantly, all members should be walking around the club with a few extra dollars to spend from the 2.6 percent overall reduction in the highest tax bracket. At the end of the day, tax reform was long overdue. Only time will tell the lasting changes on the economy. Here is to an exciting and hopefully prosperous 2018! BRB
Training reduces Turnover By Whitney Reid Pennell
If you’re experiencing a hiring crunch, you’re not alone. A shrinking labor pool and increased employment opportunities elsewhere has led to strident competition for staff nationwide. Promoting from within is one possible solution to this challenge. The Center for America Progress estimates that the cost of replacing an employee is approximately 20 percent of his or her salary. These costs include hiring, onboarding, training, ramp time to peak productivity, and lost engagement from others due to high turnover, increased errors, and culture impacts. A $50,000 position will run the company $10,000 in replacement costs. You can see how promoting from within can be attractive! Consistent training can help you create an environment where ambitious staff thrives, allowing you to cherry pick your allstars into management positions. Employees are more likely to page 5
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stay with a company that provides training and opportunities for growth. According to the Pew Research Center’s 2016 report on “The State of American Jobs,” 47 percent of hospitality employees perceive training and skills development as an essential part of work life, but only 28 percent have received it. The concept is simple: an employee feels valued when the club visibly and deliberately invests in their future. When someone feels valued, they reciprocate by feeling increased loyalty and a greater sense of purpose. Invest in training, and reap the rewards of continued growth. BRB
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perspectives From the other side: seven Ways to prepare your Club for disaster By Skip Avery
The New Year is officially underway. After the dust settles from the holidays, I find the new year is a good time for reflection on the year prior, and planning for the year ahead. As I look back on 2017, I’m reminded of many exciting things that occurred, but can’t help but notice it was a particularly difficult year as well with regard to natural disasters. From Hurricanes Harvey and Irma, to the fires blazing in California, to the frigid, well-below-average temperatures most of the country has been experiencing so far this winter, it seems like every part of North America has been affected by nature’s wrath. Mother nature is pulling no punches…
GAB Robins come to the club every year to walk around, take photographs of club assets, and more. On years where they could not physically come to the club, I would send them a comprehensive list of capital purchases that they could review and add to the club’s inventory.
As you watch these events play out on your television screen — or maybe even right in your own backyard — it’s important to ask yourself: How is my club preparing for a potential disaster? Are we ready? Remember, not all disasters come in the form of storms and blazes. Sometimes your club may experience a sudden loss of life or other traumatic event that can have consequences for everyone — from club members to the staff.
Why dedicate time to this every year? Because after performing an insurance appraisal, I was left with a complete report of what we had, what we needed, and how to break down the numbers. This enabled me to make better decisions about how much insurance coverage the club really needed and where I should allocate that coverage. This is especially important for budgeting, as many club insurance policies tend to have overlapping areas of coverage.
Regardless of whether your club’s “disaster” is a harrowing event or simply a small hiccup, it’s important to be as prepared as possible for the unexpected. Disaster planning should be a priority for every club. Here are seven ways you can prepare. After all, it is better to be safe than sorry. 1. UndErsTand THE sTaTE oF yoUr FaCIlITIEs Will your facilities be up-to-snuff when the next big storm comes around? Is a potential fire hazard remaining unaddressed? When it comes to repairing or replacing club systems, what should you prioritize? Having an up-to-date Facilities Condition Report allows you to answer these questions. The Facilities Condition Report details the fitness of your boilers, heaters, HVAC, and other essential facilities – letting you know when these systems need to be replaced. This report can provide a comprehensive view of where your club stands. Paired with a Capital Reserve Study, it can also help you monitor the club’s ongoing capital expenditure, budget more carefully, and prioritize repairs. Reserve Advisors, the nation’s largest provider of reserve studies, can help you accomplish this. Even if you don’t have the resources to hire a company that specializes in facility or reserve reports, be sure to tap into your other resources like your club’s plumbing, electric, and mechanical firms, or long-tenured facilities and maintenance staff. 2. EXamInE yoUr InsUranCE polICIEs Surveying your facilities is essential to prepare for future hardship, but it’s equally important to inventory your insurance policies. When I was a club manager, I routinely had GAB Robins – insurance appraisal and reserve study specialists – come to the club to perform insurance appraisals. This process helped me better understand the replacement costs versus insured cost for various facilities, systems, and valuable items in the club. Ideally, I would have page 7
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3. sECUrE ClUb InFormaTIon Information is valuable. Now, more than ever, securing digital information is critical. Private clubs house tons of sensitive data, from invoices and receivables to member and employee information. It’s essential that all of your club’s data is backed up in a secure, off-site location. Even if your club has a fireproof cabinet or other “protected” areas, these specialized storage units usually don’t offer well-rounded protection against the elements or security breaches. Too often we store backup data in insecure or inaccessible locations like someone’s personal vehicle or home. I have seen clubs store all of their data on a thumb drive that gets thrown in a desk drawer, only to have the building burn down and the thumb drive disappear with it. Whether you’re storing this data in the cloud or in a neutral off-site location, it’s essential that you incorporate redundancies into your club’s data storage. 4. TraIn yoUr sTaFF A club is only as good as the people who run it. During times of crisis, your staff needs to know what to do and how to conduct themselves. Alan Achatz — owner of Club Safety Solutions — offers emergency planning and OSHA training to employees so they know exactly what to do if something goes awry. Ultimately, training club employees on how to handle emergencies doesn’t just benefit the club, but also the employees themselves. OSHA training and other disaster preparedness education will professionally enrich staff and boost their resume for any future endeavors they may pursue. 5. CrEaTE a CommUnICaTIon plan Transparency should always be a club priority, but disastrous events make transparent communications even more TURN to page 9
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Traits of Excellent board members By Henry DeLozier
In a 2017 flash poll of leading club managers, Global Golf Advisors found three consistent concerns for private club managers in working with their boards: 1. 2. 3.
Board members pursuing or executing a “personal agenda” Disengaged and nonparticipative board members, and Boardroom politics.
Tim Bakels, the GM/CEO at the Colleton River Club near Hilton Head hopes for board members who “get it” – those who listen and do not engage without the facts. The best board members, as Bakels sees it, “use the club, have good business sense, and “lets the operational folks operate and focuses on policy.” Bakels wants his board to be inquisitive, informed, and engaged. Board members who put the club first and look for the longterm success and continued strength of the club are essential to effective club leadership. The board cannot be seen by members as a bickering bunch of different viewpoints. At the Capitol Hill Club in Washington, DC Stan Lawson, the club’s GM, benefits from board members who serve as “an extra set of eyes and ears as they use the different services of the club and sharing their comments in a timely manner…not just at a board or committee meeting.” Like Bakels, Lawson receives great insight and guidance from board members who are engaged and active users of the club. “I want our board members to be ambassadors,” he says of the club which is populated by many US legislators.
“Board members who are able to ask, first, if a member with a problem has brought it to management’s attention when confronted as a peer and fellow member by either a perceived or real problem / issue,” are of greatest benefit to Rick Bayliss, the CEO at Lost Tree Club in Palm Beach, Florida. Bayliss adds that his club benefits from the healthy perspective and successful background of its board members. That background enables his board members to understand the difference between “governing” and managing. “My board members always act in a manner that is best for the club…and without a personal agenda,” Bayliss adds. Joshua Tanner, the GM / COO at Ironwood Country Club in Palm Desert, California, observes that the best board members (1) have the ability to think strategically; (2) understand the core values of the club and make decisions that are in alignment with those values; and (3) listen more than they speak, but when they speak they are well educated and well spoken.” Board members who are engaged, informed, and disciplined in supporting the values and purpose of their clubs are the most effective for successful clubs. BRB
CONTINUED from page 7 important. Before any event occurs, be sure to clearly communicate any plans to members so they know exactly what to do in the event of an emergency. This is especially important for older members who may not always be able to exit the club without assistance. If a disaster does occur during an event, it’s important to keep members and staff abreast of the situation, telling them what to do, where to go, and what exactly is occurring. Once a disaster has passed, you may not only need to communicate internally with club staff and members, but also with the community and the media. Consult your trusted staff members and the club’s legal representation to determine how the club would want to communicate externally postdisaster. Larger clubs would be well-advised to hire a professional communications company to aid these efforts. 6. bUIld a CrIsIs manaGEmEnT TEam All of the steps above look great on paper, but they will only be helpful if you have the right team to implement them. Assembling a crisis management team ensures stability during emergencies. Your crisis management team should be a group of individuals that can make the right decisions quickly without receiving authorization from the Board. This will establish an emergency chain of command that’s built into the overall governance of the club. page 9
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To supplement your internal team, be sure to compile a network of resources to help you prevent future problems, tackle issues as they arise, and provide support afterward. Aside from the resources above, Laurie M. Martin of Life Interrupted, Inc. and other counseling services should be incorporated into your crisis management team. We are not necessarily qualified as club managers to help our members and our staff cope with traumatic experiences, but we should have a plan in place to help them if things go wrong. 7. praCTICE yoUr dIsasTEr plan Having a disaster plan is essential, but it’s equally important to practice your plan. Does your club staff and members know where to exit if a fire breaks out? Where should people go in the event of an active shooter? If there’s a tornado or hurricane and people are stranded at the club, how are you going to accommodate multiple people for a long-term stay? Once you answer these questions, you need to test your answers. This will ensure that club management, staff, and members are all on the same page and that the plan will actually be effective when executed. Keep in mind – this is certainly not a comprehensive list of ways you can prepare for bumps in the road. But hopefully, it at least helps get you thinking in the right direction. Do you have a disaster plan? Do you have processes in place that will help you cope and move forward? BRB
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Trends that Will shape Club marketing in 2018 By Heather Arias de Cordoba The marketing industry is under going a sort of creative renaissance. The past year Artificial Intelligence (AI) – coupled with its promise to spark a creative revolution – will lead marketers to create more out-of-the-box marketing programs. Additionally, almost every club member has a Smartphone, so this combination means new member behaviors and expectations will also play a role in the personalized strategies for 2018. arTIFICIal InTEllIGEnCE Marketers have been talking for sometime about machine learning and automation, and how AI can process data and handle repetitive tasks – freeing up their teams to focus on driving more creative work and results. “Now that autonomous technologies are emerging to do the heavy lifting around data management and campaign execution, marketers will be freed up to return to creative, sparking a renaissance that’s informed by data and, perhaps, more meaningful than ever before,” said Amy Inlow, CMO of digital agency Albert. mobIlE Mobile has been the driving force for marketing for the past few years, but according to Shelly Palmer, CEO of consultancy The Palm Group, “We have to believe that at some point the mobile experience needs to change.” As marketers, we need to think about what will come next, and some foresee the future of zero User Interface (UI), where screens are used less as consumers adopt technology such as voice commands or smart glasses. The future includes atomized experiences, where various components are worn more discreetly in different places of the body. XEnnIals Over the past five years, marketers have been focusing on reaching Millennials, but recently we’ve seen data that shows we can’t lump college freshmen in with 30somethings, and neither should clubs. To reach members appropriately, JWT Intelligence suggests combining younger Gen-Xers in their 30s and 40s with older Millennials who are now “adulting” – creating a new group called Xennials. Both groups were shaped by the experience of uncertainty during the 2008 recession and are looking for stability now. Xennials are careful with their money and don’t necessarily fit the stereotype of Millennials. BRB
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low-Handicap millennial Golfers are Willing to pay more per Experience By Michael Gregory
Golf facilities seeking to capture the next generation of Millennial members and customers should understand the relationship between player skill-level, facility exclusivity, and overall spend tolerance in order to capture prospects in both greater quantities and qualities. “Our studies have revealed low-handicap Millennial golfers to be 1-1/2 to 2 times more likely to play golf at a private club and to exhibit increased willingness to pay more for this experience,” reports Global Golf Advisors Manager Bennett DeLozier. “Specifically, GGA research indicates that Millennials with a handicap of seven or lower are willing to pay 40 percent more annually in dues compared to higher handicap Millennials.” Simply put, better players play more golf at better facilities and are willing to pay a higher price to do so. As a result, developing a strategy to capitalize on low-handicap Millennials can afford private clubs a key competitive advantage within their market. What factors are influencing these low-handicap preferences? • Recognition – low-handicaps are often admired by friends and colleagues for their golfing abilities. They enjoy the recognition that belonging to a private club provides. • Validation – this group is very competitive and the validation of their club among their peers is highly important. • Self-promotion – the opportunity to use their private club as a platform to showcase their skill and personality for business development and career advancement. • Superior conditioning – expectation levels for course quality and facility conditioning is higher among more skilled players. • Access to the golf course – low-handicappers play more golf and the ability to get on the golf course on short notice is very important. How can clubs attract these Millennial golfers? • Host an invitational event or tournament which attracts the top amateurs from your local market. • Host prestigious amateur/professional qualifiers and events that help improve the profile and ranking of your club. • Research and identify a list of the top amateurs in your marketplace. Initiate a contact and extend a personal invitation to select millennials to come experience your club. • Low-handicappers are very competitive and enjoy playing with their peers. Create a platform with great opportunities for talented golfers to play in fun club events and interclub competitions. “Regarding spend tolerance, our studies among older age groups do not show this disparity by skill level,” DeLozier says. “To support effective membership recruitment, clubs and courses should be targeting the best prospects (low-handicap Millennial golfers) in the most relevant ways (by recognizing and encouraging skill, ability, and playing proficiency).” BRB
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raising the bar!! THE HoTTEsT ClUb TrEnd: soCIal bars & CasUal dInInG loUnGEs By Craig J. Smith
As clubhouse designers, we always enjoy sharing our substantive new approaches to clubhouse enhancements that improve the overall member experience, create a new or enhanced revenue opportunity, and streamline operational efficiencies. Our most recent case study of creating a new classic club social bar and casual dining venue was at Westchester Country Club in Rye, NY, one of America’s premier private clubs. Rather than discussing the ubiquitous décor, color, and furniture trends for social bar and casual dining lounge venues, I will cut to the chase and give you our tried and true touch points to jump start you’re planning process. Key Offerings that make social bars popular… 1. Drop by the club and have a drink 2. Eat at the bar and all-day menu offerings 3. Drop by to watch a sporting event 4. Pre/Post-dinner drinks and socialization 5. Enhanced décor reflecting the club’s unique history and DNA Essential Touch Points that will keep members coming back to the club… 1. Create spaces that appeal to the broad dynamic of your membership demographic 2. Create spaces that are focused on comfort, enticing members to “linger longer” 3. Create spaces that have a fun energy and accommodate adults and families 4. Create spaces that offer varied dining and social experiences in one venue
Essential Steps to ensure that your new social bar and casual dining lounge becomes the welcomed gathering place you have envisioned for your club. 1. Only consider design solutions that will make your club special or unique by clarifying and confirming the club’s personality and story 2. Only create spatial changes that will maximize use, enhance operational efficiencies and ROI 3. Only introduce design and furnishing solutions that match the clubhouse’s unique features, current/future needs and membership demographic The single most important takeaway that I can give you, no matter what club improvement you may be considering, is to identify your core identity as a club and how you want to be distinguishable from other clubs. Doing so will ensure each and every clubhouse enhancement will keep you ahead of the competition and relevant to needs and expectations of today’s ever changing membership demographic. BRB Westchester Country Club hired Christina Romann and Craig J. Smith of C2 Limited Design Associates to envision and design the interiors for our new bar and casual dining room located within our historic Sports House. The result is a finished product that exceeded well beyond anyone’s expectations. Thomas R. Pisano, President Westchester Country Club, Rye NY
are you Experiencing “Volunteer drift?” By Gordon Welch
It is that time of the year when we all experience the dreaded volunteer drift! You’ve experienced it, right? There are a few types of volunteer drift. I want to share with you what they look like and what you can do about it. As you can imagine, the end of the year you generally have three board members going off the board and possibly one or two of your executive committee members. You probably begin to experience this phenomenon in August. The “drift” is a casual retreat of care or duty when it comes to their board responsibility. It seems as if they are counting down the days until their elected position is filled by a new or younger member. “It time for them to deal with it” philosophy. Unfortunate as it is, it happens in many clubs. You also have the “Power and Permission” member that is leaving the board or committee but isn’t really leaving or doesn’t know how to bow out gracefully. A friend of mine mentioned a problem they had with a volunteer committee member that had stayed in place long past the designated term limit. Now, this committee member had a hard time page 13
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boardROOM briefs January/february
letting go because he had been there so long he felt he was the only one qualified to manage the committee. After all, he’d been there so long! Sometimes the problem is less a matter of deliberately overstaying their welcome than being unsure of what is needed or demanded of them; they’d leave if they were given the signal that they can. Most times the change in opinions and ideas keeps your board and committees refreshed. It is difficult sometimes to find volunteers that meet the criteria of your ideal board member and have the time to fulfill the demand. As difficult as board and committee members are to find, when one overstays their true benefit, leaders (preferably the board chair with an assist from the Clubs GM/COO) need to deliver the message to those overtenured volunteers who may be overstaying their welcome. A discreet, blame-free conversation with a “drifter” will help your board and committees stay in-check! BRB
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That Won’t Work Here! We’re different! a board mEmbEr’s WorsT arGUmEnT By Jerry McCoy
“If you show him someone who is smiling, cheerful and optimistic, then he will show you someone who has no idea what’s going on,” quipped Cy the Cynic, a newspaper bridge column character, in a recent article I read. Unfortunately there are too many people serving on club boards that mirror the attitude of Cy and they are the real cynics that slow progress and damage the organization. How many times have you heard a board member say, “That won’t work here, we’re different.” They fall back on perceived club cultural habits to defend their position. They discount time tested business and club industry ‘best practices’ as out of touch with their club culture. When energetic, pro-progress volunteer leaders attempt to question past habits these directors argue so hard they suck all of the air out of the room. Unfortunately, many times the problems clubs face are directly related to cultural habits that can have destructive results. Our cynic directors may argue: • We don’t need to survey the membership; we know what the members think • We don’t need to waste our time planning; we know what the issues are • We are a golf club first; we don’t need to improve the pool and fitness center • We need to just keep cutting expenses, not raising dues • We can’t just nominate one candidate for each slot on the board; we must have contested elections to make it fair • We are debt free; we should not borrow any money for anything except a real emergency • We need to get more people using the dining room so we need to keep raising the food and beverage minimum • Saturday morning is for men only, we can’t allow women to play. Unfortunately many clubs have facilitated their problems by electing weak presidents or, God forbid, elect presidents who themselves are the cynics. They have had weak general managers or have tied the GM’s hands. These clubs may have allowed committees to run wild. They have lacked continuity of leadership and each new group takes the club down a new rabbit trail based on someone’s personal agenda. OK, let’s stop here for a minute and say that there has been significant progress in club governance industry wide. Decades ago a majority of clubs faced governance problems. Today a majority of clubs have solved most of those problems. However, there are still a lot of clubs that have not come to grips with the underlying issues that are setting them back. That we regularly see new, energetic, pro-progress leaders taking charge is a real positive. They are redefining club culture, establishing new business practices and positioning page 15
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boardROOM briefs January/february
the club for clear progress in the future. For those who are just starting, we offer the following ammunition to continue to fight the good fight. So let’s look at some solutions that may benefit these new leaders. 1. Get a copy of The Director’s Guide for Understanding Club Governance. This handbook is a 60 page comprehensive look at all aspects of club governance. The handbook identifies 60 best practices…part of the Governance Checklist companion document that allows a club to audit governance practices and adopt those that are appropriate for your club. The guide is available at cmaa.org/market/marketplace. 2. Invite the Cynic to a meeting of your friends that are all proprogress and discuss possible effective changes to on-going destructive cultural habits. Ask the Cynic to provide their opinion regarding issues and open a dialogue with them regarding your opinions. 3. Build a coalition of like-minded board members. Contact individual board members and have discussions soliciting their support for your proposals. Get the votes in advance so that, however the discussion goes, you have some confidence that the majority of the board will support you. 4. Convince the president to put pro-progress members on the nominating committee. Many times clubs have flexibility on who is appointed to the nominating committee, and it’s critical to get proprogress individuals on that committee. They will then nominate like-minded people and the progress will begin with them. 5. Befriend the GM to learn what the problems are from their perspective. Many times the GM can really clarify the issues and provide suggestions that can help move things forward. GMs may have the answers but just need critical support that a pro-progress leader can provide 6. Keep the pressure on by recommending progressive actions and policy changes. Don’t let up. Provide timely information with supporting stories of success Do all this with a smiling, cheerful, optimistic approach and be cautious. The opinionated, argumentative and lost-in-the-past type leaders can be dangerous. First, be careful about how you prove them wrong. They will fight back. They need to be handled with care. So don’t try to prove them wrong. Try to make believers out of them. There is nothing better than a naysayer that switches sides. They can become your best advocate. Remember what Abraham Lincoln said. “If you have 8 hours to chop down a tree, spend 6 hours sharpening the knife.” BRB
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