BoardRoom magazine March/April 2020 by BoardRoom magazine

In this time of uncertainty, we at BoardRoom magazine renew our commitment to our colleagues, partners and friends in the private club community to educate board presidents, board members, general managers and private club staffs. Replacing emotion with facts, solving a problem or taking away a pain has always been the mantra of BoardRoom magazine.

As we navigate these uncharted waters together, we aim to be the connection between the clubs and the vendors who can provide the much-needed solutions to the private club industry. Thank you for your continued support.

10 | PUBLISHER’S PERSPECTIVE WHAT ARE SIGNS OF A DYSFUNCTIONAL BOARD OF DIRECTORS?

28-32 | COVID-19 COMMUNICATIONS, IMPACTS AND UPDATES

54 | CMAA CHAIR MARK BADO

LEADERSHIP EVOLUTION

SAVOR THE JOURNEY

80-83 | INNOVATIVE IDEAS

20-21 | BOARDROOM AMAGAZINE EXCELLENCE IN ACHIEVEMENT AWARDS

CLUBS THRIVE

EDITOR’S NOTE

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.

The Venture into Unknown Territory

These are challenging times as the COVID-19 pandemic grips the world and we head into uncharted territory, unknowing of the future.

At the same time, private clubs seek to provide service and solace to their many members around the country by being innovative and adapting to a very difficult situation.

Certainly COVID-19 has accelerated closures across the country, whether it be pubs, restaurants, stores, clubs, beaches and schools.

Most clubs are faced with some sort of shutdown, for example the clubhouse, while at the same time their golf courses remain open, but often without the resources of professional staff.

Office workers are working remotely from their home as the emphasis for social distancing become even greater.

We’ve contacted a number of clubs across the country and it’s the same story…clubhouse closed, golf course open (for now), beach clubs closed as municipal and country governments shut down beaches.

The fact is: we need to take this COVID-19 pandemic seriously, make sure people have good solid information about this infectious disease and take all the precautions necessary to stay safe.

We’re also publishing a story on the 10 Tips for Club Crisis Communications during COIVD-19. The contributors, Meredith Laitos and Anna Hoit of JamiesonMae Communications, give some tips one what you should do for effective communication during a crisis like this.

And another contributor, Corey Saban, whose company specializes in video work for private clubs, is offering any club in the country that wants a video message to share with its members about COVID-19 a free video.

“Send us the messaging and we’ll videofy it,” Saban offered.

It’s proven to be an excellent way to give members information that they need to know about their club.

n n n

Back in January of 2018, we published the first in a series of stories about the Corporate Hybrid Governance Model that general manager Frank Cordeiro, working in co-operation with his board of directors, introduced to Diablo Country Club.

The governing model developed and approved by the Diablo Country Club membership, which we titled the Corporate-Hybrid Model (see series in previous editions of BoardRoom

Magazine), was the foundational and structural catalyst for a transformational three phase. A strategic governance approach, led by the professional team with support and meaningful input from the membership, is a winning formula! Gone are the days of policy and strategy is set by the board for management to implement.”

With this governance model now in its third year, Diablo’s board of directors has taken the next step with the decision to recognise Frank Cordeiro as the club chief executive officer.

The model is based on four tenets and principles as follows:

1. Board role exclusively strategic: The board meets quarterly and directors do NOT chair committees. How can we expect directors to be strategic yet ask them to work on tactical committee items monthly? Boards should focus on the long-term health of the club with their foresight, insight and oversight.

2 Qualifications: In the corporate hybrid model, qualifications include prior experience as a CEO reporting to a board or as a corporate director with a CEO reporting to them in a company with not less than 20 x the operating budget, employee count and asset value of the club.

3. Continuity: CEO/COO/GM shapes the culture and strategy with meaningful input from the membership and the board of directors. The belief that the board sets policy and strategy alone for management to implement is generations old and doesn’t work when the tenure of a director at a club is two to four times less than the average corporate director.

4. Micromanagement: Members are ‘customers’ and some have been customers for many years at multiple clubs. Experience as a customer doesn’t qualify them to operate or manage clubs. Seems silly, but we see this rationale employed in clubs every day. Why do members accept this model in their club since they would not in their businesses?

Some changes in the governance process that will be interesting to follow in the coming days. n n n

And we continue our stories about our BoardRoom’s top presidents for 2019. This issue includes stories about Alexis W.V. Bové, President, Waynesborough Country Club in Paoli, Pennsylvania; Patrick Britt, President, Norwood Hills Country Club, St. Louis, Missouri; Andrew Fromm, Commodore, The San Francisco Yacht Club, Belvedere, California; Barry Gordon, President, Addison Reserve Country Club, Delray Beach, Florida.

Publisher/CEO

John G. Fornaro

Editor/Co-Publisher

Dave White

Assoc. Editor/VP Creative/Co-Publisher

Heather Arias de Cordoba

Innovative Ideas Editor

Meghan Thibault

APCD Executive Director

Bill Thomas

Editorial & Marketing Director

Dee Kaplan

Business Development

Joshua Nuzzi

Accounting/Subscriptions

Susan Giem

Contact Information www.BoardRoomMagazine.com www.apcd.com (949) 376-8889

Featured Columnists

Rick Coyne

John G. Fornaro

Bonnie J. Knutson

Richard Kopplin

Contributing Writers

Nancy Berkley

Bill Boothe

Lisa Carroll

Ron Cichy

Dave Doherty

Ed Doyle

Todd Dufek

Briana Gilmore

Rob Harrs

Nancy M. Levenburg

Jerry McCoy

Gregg Patterson

Whitney Reid Pennell

Phil Harvey

Anna Hoit

M. Kent Johnson

David W. Lacey

Meredith Laitos

Melissa Low

Bruce Lubach

David L. Luker

Tom Neill

Strategic Partners and Allied Associations

Co-Founder/CEO John G. Fornaro President

Keith

Chief

Frank

Chief Information Officer

Jeff Briggs

Executive Director

Bill Thomas

Executive Assistant/ Director of Support

Joshua Nuzzi

Contact Information www.DistinguishedClubs.com (949) 376-8889

Michelle Tanzer

Dave White

Mike Phelps

Ted Robinson

Corey Saban

Dan Schmitz

Bill Schwartz

Meghan Thibault

Gordon Welch

Dean Wochaski

Frank Wolfe

PUBLISHER’S PERSPECTIVE | 10

WHAT ARE SIGNS OF A DYSFUNCTIONAL BOARD OF DIRECTORS?

BY JOHN G. FORNARO

Much has been made of the education and orientation for private club board members, however, common problems are still prolific. Sometimes boards can be rife with issues, including the fact many board members don’t know what their roles and responsibility are…what they are supposed to do to be effective board members.

BOARDROOM BASICS & BEYOND | 16

BEST PRIVATE CLUB BOARD PRACTICES

BY RICHARD KOPPLIN

As I reflect on my career in the private club business, which includes over 26 years of managing as a club general manager and over 24 as a search and consulting executive, I realize there are a few best practices in the private club world that have stood the test of time.

MAKING LOGICAL DECISIONS REGARDING CAPITAL INVESTMENT

BY JERRY MCCOY

Let’s assume you want to buy a house. You are shopping for the house with your real estate agent. The agent says it’s listed at $350,000. Your first thought is great. Where do I sign!!!!. No, you normally counteroffer at say $325,000. In some markets a great house goes on the market at $350,000 and it immediately has three offers, sometimes at more than the asking price.

STRATEGIC DIRECTION

BY RICK COYNE

Imagine a club environment where everyone shared the same mission, vision, core values and operational philosophy…where boards generated philosophical operational objectives and encouraged the professional staff to manage within clear and concise parameters. Where every consideration focused on the long-term benefit of the entire club rather than the “new idea” of the moment.

USING RAZOR-AND-BLADE STRATEGIES

NANCY M. LEVENBURG

Fall in the Midwest heralds in cooler weather and along with it, changing colors in foliage. And while fall has been described as the most beautiful season of the year to play golf, there is typically declining interest in hitting the links when temperatures dive into the 40s and the wind is howling so hard that it can actually propel a pushcart uphill!

LEGAL

COMMITTEE | 70

CAPITAL INVESTMENT IS IT REALLY DO OR DIE?

BY MICHELLE TANZER

Almost all clubs were initially established by a developer or other sponsor investing significant capital to acquire and/or construct the club facilities. This capital infusion was essential to get the club started and was typically returned to the sponsor by way of some form of membership purchase payment.

EXECUTIVE COMMITTEE | 14

THE STRUGGLE IS REAL

BY WHITNEY REID PENNELL

The Experience Economy. Where engaging experiences supersede products and services alone. Since employees are creating these experiences, our workforce is arguably one of the most important tangible assets any club has. Attracting and retaining employees is one of management’s greatest challenges.

MEMBERSHIP

THE EXPERIENCE TRAIN HAS ALREADY LEFT THE STATION

BY BONNIE J. KNUTSON

A while ago, I read an article stating that 2020 begins the experience age for the club industry. Why? Because we are living and working in an economy that is over-populated with “things” at a time when consumers – i.e. our members –are rethinking how they choose to spend their time and money.

TRIBAL MAGIC | 78

DOING THE TOMBSTONE

BY GREGG PATTERSON

Next time you’re interviewing someone for a job and are looking for a conversational “opener”, ask the “wanna-be-hired” what they’d write on their tombstone for others to read when they’re dead and gone to The Great Be-yond.

Savor their reaction. They’ll look at you in bewilderment, befuddled, panic in their eyes, clueless as to why you’re asking a bizarre question like THAT!!!

PUBLISHER’S PERSPECTIVE

JOHN G. FORNARO

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

What Are Signs of a Dysfunctional Board of Directors?

Part I

Dysfunctional boards can cause myriad headaches for private clubs and their members as boards often fail to make decisions in the best interests of the club.

All this can lead to stagnation, contentious issues and a poorly run board that faces many problems.

• Conflicting agendas: Meaning board members may not be on the same page when it comes to the operation and future of the organization.

• Lack of order: Board meetings should function in an orderly manner, and if this doesn’t happen the board can become dysfunctional.

•Lack of respect: All parties must develop respect for one another for the good of the organization.

• Hostile environment: This type of environment stifles productivity and can often prevent board members from working together for the good of the organization.

•Secret meetings: A board and club members should become concerned if there are secret meetings that leave certain members out of the decision-making process.

“Boards need to take the mirror test and be brutally honest. Is the board focusing on the future, are they effective, is the club growing with highly satisfied members with a string demand for membership? If not, they are failing and need to adjust

how they approach governance of

the club.”

Frank Gore, chief analyst for BoardRoom’s Distinguished Club program

Part I of this series focuses on the Signs of a Dysfunctional Board while Part II will offer Solutions for a Dysfunctional Board that private clubs can put into action.

Private clubs run into difficult times because of dwindling memberships, mismanagement and boards of directors that are either neglecting their fiduciary duties or they’re out of control, creating not only a dysfunctional board, but a dysfunctional organization. In short, a dysfunctional board has the ability to cause multiple problems for a private club.

Stacy Zeiger, in an article for Small business. chron.com, lists off the top 10 signs of a dysfunctional board as follows:

• Lack of confidentiality, noting that when boards do not keep certain information confidential, problems often ensue.

• Personal agendas: This is major bugbear when board members seek to push their own agendas for their benefit, as opposed to the benefit of the club.

• Lack of trust: If board members do not trust each other, it becomes difficult to maintain a functional board and this can also lead to a lack of trust of the board by club members.

• Dominating members: The ability of one or two board members to dominate the board’s activities, either by dominating the conversation, shooting down dissenting opinions or harassing other board members, creates a dysfunctional situation.

• Non-participation: Showing up late for board members, arriving unprepared or simply being a no-show for board meetings gives the sign of a rogue board members.

Yes, many issues have hampered club growth, transparency, inclusion and participation. But there’s more!

“The club will suffer in retaining and enrolling new members with a dysfunctional board,” emphasized Frank Gore, chief an-

Strategic Direction

The Path to Collaborative Success

RICK COYNE

Rick Coyne is president, ClubInsights. He can be reached via email: rcoyne@clubinsights.com

Where bias and personal agendas were non-existent, replaced with data enriched, collaborative discussion and decision making aimed at the entire membership. Where every consideration focused on the long-term benefit of the entire club rather than the “new idea” of the moment.

Imagine an environment where tenure and experience were appreciated and sought after. Nirvana?

With careful ongoing planning, education and engagement with leadership on emerging trends, the entire team can begin to envision the world around them, the possibilities for the future and a collaborative strategic direction.

For some exceptionally lucky and/or skilled management teams, this scenario may already be a reality. For others, and we’ve all seen them, it’s so far-fetched that it’s impossible to imagine. So, while most clubs aspire to be functional, strategic, collaborative and sustainable, the pathway is often a minefield of challenges beyond the control of the professional staff.

Very simply and without malice, the system of non-profit governance often creates greater challenges than it solves. Our hard working, well-meaning, part time, inexperienced, volunteer club leaders often see the future of the club more through their own usage and interests, rather than envisioning a process with sustainable benefits to the entire club.

Despite brilliant attempts to provide systems that identify and attempt to solve this problem, inevitably, a three-year turnover in the board of directors makes institutional memory nearly impossible.

Even clubs willing to take on the responsibility of completing a strategic plan often find it failing to survive even the first year of facilitation. This is often the result of a process that occurs as a mandate, rather than a common belief in transparent and collaborative planning.

The mandated process often results in participants congratulating themselves then resuming business as usual. For some, strategy is an exercise to justify making changes that were contemplated before the process even began. So, what’s it take to drive a consistent, thoughtful and objective process that can endure the ever-changing leadership dynamic?

After conducting hundreds of strategic plans over the years, here’s a five-point process I believe is critical before taking even the first step in creating a strategic plan.

• Think objectively and without bias! Create an open book strategy and engage objective and professional members and staff in the process. Don’t hang up on who or what you are today. Think clearly about what you need to be in the future.

• Define the data that you will need to evaluate as you develop your plan.

> Most experts will suggest knowing where you have been as the starting point. Run a five to seven-year historical analysis of facility usage, past surveys, and how membership has grown or contracted.

> Where are you today? Look at the depth of your specific market in terms of interests in what you offer and the ability to afford. Thoroughly review competition. Look at the age segmentation of your members and the age of new members joining. Do a “professionally developed” member survey.

> Read everything you can about “best practices” of the industry, what’s working and why and how.

• Engage a facilitator/consultant that can collect the data required for you to review and keep you from diverting from objective observation and thinking as you traverse the process.

• Identify what is different from who you are today and what you need to be in the future. Look out as far as 10 years on capital planning but ensure that the other changes you envision can be accomplished over three years, hopefully in one-year increments.

• The difference between where you are today and the vision you will create for the future requires time lined, measurable and accountable goals reviewed quarterly. Schedule an annual retreat, with a special educational session before for new board members. Re-evaluate the entire plan after the year and re-establish the objectives for the ensuing year, complete with quarterly milestones.

While the process is fairly simple, logical and easy to understand, here are a few of the challenges you might encounter as you begin. Internal politics, “sacred cows”, bias, failure to objectively react to clear and concise market and historical data, and dysfunctional governance are the leading causes of strategy failure.

From “favored” staff that have the ear of the decision makers to strategy participants that simply “go through the motions”, it’s best to understand obstructionist aspects before you begin. Having a team of volunteers and professionally trained staff on the same page offers an unfettered pathway to objective, collaborative and cooperative interaction for the benefit of your entire membership. It makes the process more fun as well. BR

EXECUTIVE SEARCH

“The executive search process was well-executed with timely updates and coordination. I was very impressed with the communication, updates, and accessibility. Any club would benefit from their contacts, resources, and experience in the business of golf.”

Nick Jacovides, Club President - Bayville Golf Club

GBN recruits the most accomplished General Managers, Directors of Golf and Head Professionals from across the golf industry. Our search team diligently researches, plans, recruits and coordinates all aspects of the recruitment process which ensures exceptional results. We have intentionally combined the highest level of industry experience with global expertise in executive search. The result is an unparalleled outcome for our clients.

Patrick Seither PRESIDENT/CEO

Bob Ford PARTNER

Dave Ransom PARTNER

“We retained Golf Business Network (GBN) to assist us in the search for our new Director of Golf at Mediterra. The professionalism, knowledge of the industry, and timely communications that the GBN team displayed throughout the process contributed heavily to the success of our search. The firm’s great database of talented candidates and the team’s attention to detail were key in providing the most comprehensive selection of finalists for our property. I would confidently recommend GBN to anyone looking for a top tier search firm for any golf staffing needs.”

Carmen J.

Mauceri, CCM The Club at Mediterra

For more information, please contact Patrick Seither at 919-372-8220

The Struggle Is Real

Whitney Reid Pennell, president of RCS Hospitality Group, is a celebrated management consultant, educator, and speaker. RCS specializes in strategic planning, operations consulting, food and beverage management, executive recruitment, and training programs. RCS has been recognized 10 times with a BoardRoom Excellence in Achievement Award, most recently in 2019 in the categories of Staff Training and Consulting Company. RCS continues to offer innovative solutions through RCSUniversity.com, an online virtual training portal for employees and managers. For more information, phone (623) 322-0773; or visit the RCS website at www.consultingRCS.com.

We are living in the Experience Economy, where engaging experiences supersede products and services alone.

Since employees are creating these experiences, our workforce is arguably one of the most important tangible assets any club has. With a record low unemployment rate, resulting in a competitive labor market, attracting and retaining employees is one of management’s greatest challenges.

There are currently more than seven million vacant roles in the U.S. alone, so we must be prepared in both our retention strategies and also our recruiting efforts.

At the beginning of each year, companies who serve specific markets put out their predicted trends. Glassdoor. com, a job and hiring website, recently announced eight trends for 2020. Here are a few of those trends that are already impacting the club industry and will continue for the foreseeable future.

Technology is creating quite a revolution in the hiring space. The first wave of artificial intelligence (AI) brought us video interviews, applicant tracking, prescreening opportunities and predictive index testing.

The second phase of AI technologies will help managers with routine administrative tasks such as budgeting, scheduling, planning, communication, training and performance reporting. Two large growth areas are employee scheduling, communication and coaching and virtual training.

This year – 2020 – begins a decade of “Culture First” for employers. A survey of nearly 200 prominent CEOs for the world’s largest brands declared that employees are the focus of the modern corporation, where stakeholders used to hold the top spot.

We’ve been touting the importance of culture for years, but it is difficult to overstate the importance of this shift and one that club leaders cannot afford to ignore. Culture-first thinking – elevating employee engagement to the level of a core business focus – must be in your strategic plan for employee retention and recruiting success.

Glassdoor reported that workers are increasingly prioritizing culture over cash. Over the years, there is now enough data in studies to confirm that workplace culture is linked to financial performance, innovation, attracting talent and customer satisfaction.

Recruiting will adapt as 65-plus Baby Boomers become the fastest growing workforce, which seems counterintuitive, but the fastest growing labor force in the coming decade is 65 and older. While the American labor force is predicted to grow 5.5 percent, the senior citizen workforce is expected to grow by 61 percent.

They are healthier, more engaged and working longer than past generations. Managers in the club industry report that the Baby Boomer generation brings industrial knowledge, work experience, manners as a habit, critical thinking skills and strong problem solving and service recovery skills.

Opportunities to learn and develop new skills will be front and center over the next decade. Older workers are just as open to learning new skills as their younger counterparts if given the opportunity. And younger generations have an expectation for continuous learning from their employer; without it, they will not stay.

Clubs who invest in their employees by offering relevant, accessible learning programs in 2020 (and beyond) will be best situated to attract, retain and profit from the aging workforce of the future.

Lastly, more people will find their next job on a mobile device. The introduction of mobile phones as a smart device – or computer in our pocket – forever changed the way in which we live and work. We have become reliant upon them for mail, news, calendars, photos, social connectivity, reservations, banking, travel, and more.

Or course, our potential employees will use their mobile device to search and apply for jobs. Desktop PC use is on the decline as more of our lives move to our phone. Clubs must streamline their mobile job application experiences to remain relevant to future employees.

Within five years, 72.6 percent of Internet users will exclusively access the web through a smartphone, according to The World Advertising Research Center. By not having a ‘mobile-first’ recruiting strategy, you may be missing out on top talent.

Mobile device candidates only complete about 22 percent of applications they begin, compared to 47 percent on a desktop.

We must invest in our human capital to succeed. Using these trends to set your recruiting and hiring strategy will position you for success in the decade to come. BR

BOARDROOM BASICS AND BEYOND

Dick Kopplin is a partner in Kopplin Kuebler & Wallace, an executive recruiting firm providing services to the private club industry. The company has offices in Scottsdale, Arizona, Jupiter, Florida and Cleveland, Ohio. He can be contacted at (480) 443-9102 or via email: Dick@kkandw.com

Best Private Club Board Practices That Have Stood the Test of Time

It’s not surprising that many, if not all five of these best practices are evident in what I typically call the “Model Clubs.”

First is the selection of board members by a nominated slate, which includes the same number of candidates for the same number of open board seats.

The number of clubs with a contested election process continues to decline as enlightened club officials recognize that this method of selecting leadership is about as useless as the appendix is to the human body, and often as toxic.

A nominated slate allows for a club to select the most qualified and committed members for board positions and there is assurance, knowing that a future club president will emerge from this carefully evaluated group of volunteers.

understand the merits of a two-year presidential term, if the rational for the proposed change is clearly outlined.

A corollary best practice is to provide for a succession plan that allows the future president to “rotate through the chairs”, which often includes a term as treasure and/or vice president, before their progression to the president’s role.

The fourth best practice is to focus on data and fact driven information to make the appropriate governing decisions at the board level. I can recall too many endless conversations in my management years when a few board members would react to some specific issue very emotionally and then adopt a position that could not logically be supported by the facts.

Today, there are some wonderful resources available to club boards and general manager/COOs, provided by the Club Management Association of America and other research firms, focused on the private club industry. A refreshing refrain that we hear from more and more board members is “What does the data say about this issue?” and “How have other like and similar clubs resolved this issue?”

A best practice is to provide for a two-year term for the club president...

The second is the emergence of the general manager/ COO concept. Enlightened boards have concluded that operating a multi-million-dollar business requires a leader and thought partner who has the trust of the entire volunteer board.

That trust is demonstrated by engaging the general manager/COO to function as the operational agent while board members function as the governing body with no managing role in day-to-day activities.

The third best practice is to provide for a two-year term for the club president. This typically requires a bylaw change in most clubs, but it is well worth the effort. The membership, if needing to vote on that change, will

The fifth best practice is to have a board retreat for a day or two away from your own club. Almost every “Model Club” that I’m aware of has consistently scheduled a time for strategic thinking and goal setting.

Often, a facilitator can assist by focusing the board on the governance issues that will allow them to effectively lead the club. Board members are often surprised at how their annual retreat has positioned them to be successful in the very competitive club environment.

When visiting private clubs around the country it’s not surprising to see how the most successful clubs have engaged most, or all, of these five best practices. They have indeed stood the test of time. BR

FOOD-TRAK F&B management software, and the SCI teams that implement and support it, have been recognized year after year for excellence. Larger clubs need an enterprise-level F&B system for inventory, procurement and culinary control that is capable of integrating their accounting, POS, catering and distribution ordering systems. Expanded, fine-tuned and perfected over 40 years, the FOOD-TRAK system is capable of handling the most complex environments in food service. The intelligent use of scanners and mobile devices make data collection fast, accurate and even fun. And our team of highly trained, club-experienced professionals not only implement the system, but orchestrate a smooth stress-free transition for your staff.

If your club is a Platinum or Distinguished Club, then perhaps it’s time to consider partnering with SCI’s award-winning team to take your F&B management and control capability to the next level.

OCEAN REEF CLUB

THE POLO CLUB OF BOCA RATON

OLYMPIA FIELDS COUNTRY CLUB

COUNTRY CLUB OF VIRGINIA

PLIGHTS AND INSIGHTS

NANCY M. LEVENBURG

Nancy Levenburg, Ph.D., is a recently retired professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She has published numerous articles in business and professional journals, and has assisted over 200 organizations with strategic planning, marketing strategy, and improving operations. She is the president of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 821-5678.

Using Razor-and-Blade Strategies

Fall in the Midwest heralds in cooler weather and along with it, changing colors in foliage… from brilliant greens to red, yellow, purple, black, orange, pink, magenta, blue, and brown.

The country club’s or golf resort’s outdoor pool is closed for the season and the patio furniture is readied for winter storage. And while fall has been described as the most beautiful season of the year to play golf, there is typically declining interest in hitting the links when temperatures dive into the 40s and the wind is howling so hard that it can actually propel a pushcart uphill!

So, as golf course play declines, so goes golf course – and club – revenues. In order to stimulate fall play and revenues, many clubs significantly discount their prices. Greens fees are often cut by up to 50 to 90 percent. The pro shop slashes prices on summer merchandise that remains in inventory. And many clubs launch new member recruitment programs.

In

30, 2022) and pay 40 percent of the initiation fee ($3,000 for a fullgolf membership) and stock ($500) upon application.

All three of these promotions illustrate the classic razor-and-blade marketing strategy. What this pricing strategy is all about is selling a durable product (the razor) at an enticingly low price and profit margin to stimulate sales of the higher-margin consumable item (the blades).

As exemplified by Gillette (and dating back to the 1900s), the goal of this strategy is to sell as many “razors” (discounted club memberships) as possible in order to generate a stream of recurring income from the “blade” sales (monthly dues) over time. It also induces customer loyalty and can create high switching costs.

It’s a strategy that’s been successfully employed by Keurig with its single-brew coffee pods, by Amazon.com with its e-readers and by printer/print cartridge manufacturers.

I understand the appeal and logic of deploying this type of pricing strategy. The low initial price reduces the perceived “riskiness” associated with the purchase, since the buyer invests less. And this may be a factor in stimulating trial, which Club B emphasizes in stating “you decide by December 31 if you wish to continue your membership.”

Razor-and-blade pricing strategies can be lucrative when they’re working well. But problems ensue when competitors enter the market with an equally compelling “razor” that uses less-expensive “blades.”

order to stimulate fall play and revenues, many clubs significantly discount their prices. Greens fees are often cut by up to 50 to 90 percent.

The pro shop slashes prices on summer merchandise that remains in inventory. And many clubs launch new member recruitment programs.

As one example, Club A’s fall membership promotion (announced on September 1) advertises that fall membership fees will be deducted from the upcoming year’s dues. Club B, another private club, promises a $500 flat fee for the remainder of the year, with dues waived until July 1, 2021, representing at least six months of dues-free country club amenities and life. Plus, “You decide by December 31, 2020, if you wish to continue your membership.”

And finally, the fall promotion (announced in mid-October at Club C) advertises “No Monthly Dues Until April 1, 2021,” as long as you commit to a one-year membership (through April

For example, one of Club C’s primary competitors prices its initiation fee at $1,500 with no stock requirement for a full-golf membership (versus Club’s C’s $3,000 initiation fee + $500 in stock).

Its monthly dues are $495 (versus $580 at Club C) and its annual dining minimum is $600 (versus Club C’s $750). A less expensive razor? And blades, too? It appears so! And if Club C’s prospective members see things similarly, it could be entering a dangerous race to the bottom through discounting.

How to avoid this is not to engage in price discounting. Instead, hold prices constant throughout the year and emphasize what you do best (your overall value proposition). By doing so, you will improve customers’ experiences and engender their loyalty. And in the end, isn’t this your most important – and most profitable – goal? BR

BoardRoom magazine Excellence in Achievement Awards

The BoardRoom magazine “Excellence in Achievement” Awards, recently held in Grapevine, Texas during the CMAA World Conference and Expo, 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

Crystal Thomas

GARY PLAYER EDUCATOR

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Bench Strength Every Team Needs This!

BRUCE LUBACH

Bruce Lubach is a PGA Career Services Consultant serving the Southwest and Sun Country Sections. He can be reached at (402) 802-8241 or blubach@pgahq.com.

Many analogies cross over from the world of sport into operating the business of a private club. Some of you reading this may not remember the 1972 Miami Dolphins football team. To this day, they are the only undefeated team in NFL history finishing the season 17-0.

The quarterback position stood out as one of the interesting aspects of these teams. The Dolphin’s starter, Bob Griese, was injured early in the season and was replaced by an outstanding back-up, Earl Morrall. The Dolphins did not miss a beat and continued their winning ways with Morrall at the helm.

Griese replaced Morrall in the Super Bowl but without having a capable back-up, the Dolphins undefeated season would not have happened.

Whether it is the NFL or the business of golf, there are necessary building blocks to put into place to increase your chances of success. When I use the words ‘bench strength’, I want you to think about key personnel in your higher profile positions at your club.

I’m sure many of you have heard the term succession planning. By definition, succession planning is the systematic process of recognizing and creating future leaders who can take the position of the old ones when they leave the organization because of retirement, resignation, termination, transfer, promotion or death.

Perhaps you are saying your club doesn’t have the financial means to address this process. My retort is this: “The cost of not implementing a plan to replace key personnel will be greater if you don’t!”

One line item in every budget at a club should be in the area of continuing education for key personnel. Not only should it be a budgetary line item, but it should be a requirement for staff to attend their respective association’s educational offerings.

The PGA, LPGA, CMAA and GCSAA all have outstanding seminars to keep staff abreast of industry trends and forecasting. Attending seminars with like-minded industry professionals will enhance their networking opportunities and your staff will also be able learn from others attending.

There is something to be said for giving back to the game by industry leaders and we all should share in this as a welcome opportunity. By allowing key personnel assistants to attend these educational forums will add value to your club as you are showing staff you value them and expect them to grow in their careers. Great teams have great bench strength and requiring education will make your club stronger.

This chart will give you a framework from which to work in implementing a succession plan. Obviously, this will take time and effort to implement but doesn’t your club deserve this? I think the answer is a resounding YES!!

One of our goals in PGA Career Services when helping clubs is to assist them to keep their business running efficiently, effectively and without an interruption in service to the membership. It seems obvious to have clubs plan on putting into action steps a system where key employees are intimately involved in the process of training those under them, so the succession plan can take hold when a change occurs.

It is healthy and empowering for a club to see change occur when an internal employee is hired to replace the person who trained them. This provides a sense of hope to other staff members to see this happen who may be being trained by

their superior in another department. Feeling part of a team and seeing staff morale enhanced can be a by-product of succession planning, which also gives a sense of pride to your membership that good people are employed in the operation they support.

Preparing top talent to take on key personnel roles and challenges is essential to the club’s success. Competition is keen in the market of attracting new members and revolving doors with departures of members are often signs of some form of dysfunction. Lessen the odds and make succession planning a part of your club’s culture. This will pay dividends and improve your bench strength! BR

EXECUTIVE COMMITTEE

A to Z Leadership: ZEAL

RON CICHY

Dr Ronald F Cichy, O.M. is Professor Emeritus, Michigan State University

ADROIT begins with the first letter of the alphabet and we captured and reported the essence of “Being ADROIT” earlier (The BoardRoom March/April 2019, Volume 23 Issue 281 p 28).

Now we present ZEAL, the last letter in the alphabet. We asked club leaders attending BMI III at Michigan State University in October 2019 to write their definition of ZEAL on a card and their answer to: When your actions are those with ZEAL, what do you and others see? A to Z Leadership: ZEAL is what emerged as our premise.

MNEMONIC

One could paint a picture of ZEAL as a mnemonic, that is a memory aid. ZEAL could represent Zest (i.e., with gusto and fervor), Enthusiasm, Ardor (i.e., personal passion), and Love. These remind us to do what we do with ZEAL.

Here we define ZEAL using all the letters in the alphabet, in order; each is bolded for emphasis. We use ZEAL to indicate a person and ZEAL to be a set of actions, behaviors.

Here We Go Starting With A: ZEAL is possessing an attitude in which actions to achieve are never impossible. People who have ZEAL live with avidity (i.e., extreme enthusiasm). ZEAL is an awesomeness, an impressive display of passion. To have ZEAL is to believe in something deeply. ZEAL is a commitment to the cause, and it requires dedication.

E to P: ZEAL provides energy to do whatever it takes to achieve. Eagerness formulates ZEAL and engages talent. ZEAL is focused motivation. All motivation comes from within. The S.M.A.R.T.E.R. Goal is to engage others. A person with ZEAL has high energy, energy used to inspire others to responsibly act.

Take a moment and juxtapose the image of one who has ZEAL with one who does not. Who would you rather be? You may decide to keep practicing the alphabet of ZEAL. Practice not to make perfect but to make permanent. Those with ZEAL have a love for learning. The magic is in the motivation of self. Naturally, ZEAL points to obsessively passionate in a person

Q to V: The quality of reacting to excitement is ZEAL. Readers are leaders. And the leaders see goals to com -

pletion. ZEAL is found in the team’s success . Zeal takes tireless determination, unfailing in promotion of the goal even in the face of resistance. ZEAL is unwavering passion.

ZEAL sees the vision and does not ever compromise standards or values.

W, X, Y: A ZEAL has a way of looking at a situation and then taking actions needed to make things better. Normal is not enough for a ZEAL. Rather, X – tremely X – cited.

When you have ZEAL in a private club, you have committed talent and engaged members.

And, finally Z: Z is for zealousness from a passion deep within, fervency of purpose, relishing life with vigor, fondness for the fire within, insatiable appetite and taste for the extraordinary.

SURPRISE

When we set out to research this topic, we had slight appreciation for the role that ZEAL plays in leadership. We heard the powerful messages from the club leaders. We were able to answer the questions around our premise: How is ZEAL defined? And what is ZEAL when you see it? and provide some answers for readers.

Now where do we head given this new knowledge of ZEAL? These components of ZEAL selectively could be contemplated in silence. Perhaps there are some traits missing from daily practice? They are work-ons.

Another use of these identifiers is as conversation starters among talent and/or among volunteer leaders and paid leaders. The qualities could be discussed with talent in the club. Those who are ZEAL could be recognized and appreciated as role models for others.

Be encouraged to give ZEAL a try. See what happens. Evaluate the outcomes. Use for your personal development and as a basis to help develop those for whom you serve as a mentor.

A mentor with ZEAL sees the relationship going both ways, each mentoring the other. Have a chat about ZEAL the next time you meet. BR

Barton Creek Resort & Spa, Aus�n, Texas

COMMUNICATIONS COMMITTEE

COREY SABAN

Corey Saban is the founder of Newstation.com, named the membership engagement tool of the Year by The Boardroom magazine. A former Emmy nominated and Associated Press winning journalist, Saban and his team help clubs tell their story through affordable short form videos, which are produced in just 48 hours.

Use Video to Your Advantage

You do it. Your parents do it too, sometimes more than once a day. Every generation is using their phones and watching videos. So now that I have your attention, what does that mean for your club?

You may not realize it but by using videos you can create greater member engagement and retention. Also, if used strategically you can attract new members.

So let’s look at whose watching:

• Eight of 10 people between the ages of 55-64 consider themselves video regulars.

• Six out of 10 people 65 and older find the convenience of watching a video much easier than reading on their device. (As of this writing the YouTube channel for AARP has more than 130,000 subscribers.)

• Millenials spend more time on YouTube than traditional TV

• 35-54-year olds watch more than 1.5 billion YouTube videos every day.

Now that you know this data, it’s important to try and leverage it but to also understand two of the powerful “whys” of video. Videos create an immediate connection and if done correctly they share a visual story that stimulates a feeling or an emotion.

First, let’s focus on member recruitment.

When someone visits the club, what happens? They get a tour, a nice lunch, perhaps a stay and play. Then they leave with a packet of information. Days later the calls and emails begin “selling” the community and the experience.

Now stop and put yourself in the prospect’s position.

How many emails do you get a day? How many do you read? Statistics say the average person gets 121 emails a day with a 3.1 percent click-through rate, meaning we are no strangers to the delete button. You must do better, after all no one wants to be marked as spam.

So what if each follow up email was a video? What if the prospect opened it and instead of struggling to read print on their phone, they clicked a button and got a short video highlighting what your club has to offer? Video gives you that chance to show, not tell. The prospect will see people in their age group having fun, enjoying the amenities and living the life they desire.

From a marketing point of view, it’s a win. As a bonus, statistics say that videos in an email get a 300 percent higher open rate than text. (It’s pretty easy to just hit a button and watch.)

Some clubs have a series of short videos they share with prospects via email that they filter out. If the prospect likes dining and social, then they are served those videos that may highlight the chef’s creations and show members having a good time.

If it’s golf or tennis they enjoy, the videos focus on that. Both tell a story appealing to the prospect and include a portion that highlights the overall lifestyle. Remember these are not supposed to be very long at all, keep them under a minute and a half so you can give the prospect just a quick reminder of what they experienced.

Then there’s regular member engagement.

Think about all the challenges of members not knowing about an event. “Was this advertised?” “No one told us.” You know all the excuses. Members lose flyers. They take them home and they get buried under the mail or whatever other papers they have accumulated.

If you’re already using social media or an app why not integrate videos for regular communication?

Like you your members live on their phones (we touch them on average about 80 plus times a day). So we see a lot of clubs sharing their construction updates, social and dining events in short form video.

They blast them in emails, share them on Facebook and Instagram and of course, the club website…everywhere the member interacts with the club. We already know the emails get a higher open rate but the videos on Facebook on Instagram get twice as much engagement as well.

Use the data and video content to your advantage. Think about what makes your club special and share it. Slowly you will be able to get away from the paper flyers and packets that oftentimes end up in the garbage. BR

“As a private club, our members and guests expect the same caliber of Five-Star service that Forbes Travel Guide offers. Forbes Travel Guide worked with our leadership team to create custom standards, tailored training, and quality assessments which have been implemented throughout the club. We value our partnership with Forbes Travel Guide and look forward to continuing to raise the bar at The Union League of Philadelphia.”

Jeffrey P. McFadden Chief Executive Officer/General Manager The Union League of Philadelphia

President

The COVID-19 Pandemic

HOW DO CLUBS RESPOND?

By Dave White, editor

Safety remains the top priority for private clubs as they struggle to meet the needs and demands of their members across the country, amid the COVID-19 pandemic.

Many clubs have initiated their emergency preparedness programs and continue to serve their members as best they can, all while realizing the severity of the situation. Takeout food programs for members are a huge benefit for members at many clubs.

This includes occasions where staff members are working remotely, clubhouses and pro shops are closed and there is limited staff help for members on site. Social distancing is being emphasized, whether it’s at the club or in public, said Denise Saari, communications manager at Addison Reserve Country Club in Boca Raton, FL.

Broken Sound Club in Boca Raton, FL has started a Meals on Wheels program for members. Staff working on this very popular program is being rotated. The golf course and tennis courts are still available to members, but the pro shop is closed and the golf cart staging area is now in the club’s parking lot.

Many clubs’ board of directors have been meeting to provide guidance to general managers and staff all while following the restrictions placed on clubs by governments and agencies. Clubs are still leaving members responsible for their own choices – should they play golf or not.

At Addison Reserve Country Club, the actions are very similar with those of other clubs and the food and beverage department is extremely busy meeting the members’ demands for takeout food delivered to their homes.

“Members can order lunch at 10 a.m. and it’ll be delivered between 11 a.m. and 2:30 p.m. Dinner orders are taken at 3 p.m. with delivery following between 5:30 and 7:30,” Saari added.

She said in her area there’s a 9 p.m. curfew and restaurants are closed, except for takeout food. As in many areas, retail hours at stores are being curtailed with limited staffing and many schools across the country have closed for at least a month. It’s a wait and see situation.

Innovation is the word at Frenchman’s Creek Country Club in Palm Beach Gardens, FL. The club has initiated live streaming on the club’s television channel to keep members engaged and there’s drone delivery services for takeout food, explained Pamela Rudd, Frenchman’s Creek director of marketing.

“We’ve got live-streaming classes including iPhone and iPad workshops, and cooking with the club’s chef, among others. Club members receive a food basket and at an appointed time the cooking class is live-streamed for members who can prepare their meal as the chef interacts them. There’s been a heavy increase in takeout food and this includes drone delivery services. Our team is licensed to fly drones and we use them for many purposes. We’ve also engaged a food truck and there’s been a great response to that, as well. We’ve got outdoor workout classes, walking challenges and are live -streaming water aerobics so members can continue their exercises in their home swimming pools, ” Rudd said.

The Frenchman’s Creek clubhouse remains closed and the county’s decision to close beaches has affected the Frenchman’s Beach Club, now closed with no service, outdoor amenities, i.e. golf courses, are still open, but social distancing is emphasized and groups no larger than four or five people are encouraged.

Out on the west coast, the Los Angeles Athletic Club is “trying to operate as much as we can while still confirming to the guidelines set down by the county and city,” said the club’s assistant Manager Cory Hathaway. The club’s staff in the operating department, catering, spa and restaurants has been placed on furlough.

“Trainers are coming in for on-line classes as is the team writing communication content.”

The club is reaching members through its Instagram site and also the website, especially for the grab and go food service.

“Our hotel is open with a few guests and our workspace is also open for those who don’t have an office. Otherwise our other facilities are closed,” he added.

Certainly there are things we can do as individuals…keep in touch with your family and friends, don’t spread misinformation about the pandemic, but rather seek out knowledgeable, credible sources. Go for walks in the sunshine and be safe! BR

Editor’s note: This story was written 3/19/2020. For more up-to-date contents, questions, answers, information and vendor support, please visit www.boardroommagazine.com/ covid19.html

10 Tips for Club Crisis Communications DURING COVID-19

By Meredith Laitos and Anna Hoit

The spread of COVID–19 has resulted in widespread disruption for the private club industry. Most clubs have enacted postponements and cancellations and some clubs have closed their doors.

At a time like this, maintaining your club communications is more crucial than ever. Without a physical gathering space, members will look for touch-points in other places. Through digital, social and print communications, you can continue to offer your club members support and maintain the stability of the organization.

Here are 10 tips for effective communications in a crisis:

Designate a spokesperson and a backup: This should be a person who is in a position of authority and who is immediately recognizable to the membership, such as the general manager, commodore/president or chairman of the board. This person must stay on message, communicating only information they have verified.

Provide your staff with talking points: Remind them of their professional obligation to be leaders and not to speculate with members or sow worry and confusion (even behind closed doors). This goes for everyone—waitstaff, front desk attendants, accountants, golf pros, etc. When issuing an alert to the membership, send it to your staff at least 30 minutes earlier to allow them time to review the information so they can be prepared for member outreach. Be clear and concise: Every organization is mass-emailing their distribution lists at this time, and our inboxes are becoming stress-inducing zones of madness. Be communicative with your members but be concise. Gather as much information as you can and send it in as few emails and posts as possible.

Create a dedicated webpage for crisis-related updates: Use this page to publish all of your related updates so members can reference a single resource. Include a link and/or pop-up of this page from your home page.

Be consistent across all channels: Make sure every channel— emails, website, mobile app, social, print communications—is updated at the same time with the same information. When communicating via one channel, include links to your other channels and remind members of the many ways they can remain connected to your club.

Monitor all channels: In times of panic, members may project their nerves onto social media. Watch for posts and comments on all of your pages and respond quickly and appropriately, offering

thorough information and demonstrations of stability.

Don’t delete events; amend them: Don’t delete events from your website calendar. Rather, change the name of the event to include the word “POSTPONED” or “CANCELED” and include verbiage at the top of the web page explaining the situation. Members will continue to reference old reservations and this will keep them informed while cutting down on phone calls.

Tell your members how the staff is mitigating risk: If you are sanitizing the clubhouse, increasing housekeeping staff, encouraging sick staff to stay home, or canceling hands-on duties such as personal training, make sure your members know about those risk mitigations. Repeat them in multiple communications and ensure your staff are living up to the promises made.

Use this time to regroup: It’s rare we have the time to step away from the dizzying pace of our clubs, so take advantage of it to tackle some of those back-burner projects you’ve been avoiding. Organize your photo archives, digitize your membership application, redesign your menus or prepare content for upcoming issues of your magazine.

Be prepared: No one can say how long this virus will affect our lives, but there will come a time when our clubs will resume normal operating hours. When that happens, members will return to their club en force. Be prepared to welcome them. Freshen up your menus, signs, posters and collateral around the clubhouse. Send out print, email and social messaging announcing new dates and times for rescheduled events.

One thing is certain – club business is going to be affected by this virus for some time. As the situation unfolds, we hope these tips can equip you to show leadership and keep your members informed. BR

Meredith Laitos and Anna Hoit are with JamiesonMae Communications, a full-service marketing and communications firm for private clubs. We’re offering complimentary advisory calls throughout the month of April for clubs navigating this crisis. Get in touch at info@jamiesonmae.com.

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Specializing in GM/COO, CEO, Assistant General Manager/Clubhouse Manager, Director of Food and Beverage, Executive Chef, Director of Golf/Head Golf Professional, Golf Course Superintendent/Director of Agronomy, Director of Tennis/Director of Racquets, Fitness & Wellness Director, Chief Financial Officer, Director of Finance, Controller, Membership and Marketing Director Searches, and Consulting Services for Private, Resort and Developer Owned Properties, Clubs and Communities as well as Senior Living Communities and Property Owners Associations.

SPECIAL ANNOUNCEMENT

Ms. Jenifer Bologna, President Burning Tree Country Club, Greenwich, CT

RICHARD KOPPLIN KURT KUEBLER THOMAS WALLACE

CARROLL MICHELLE RIKLAN JACK SULLIVAN ANNETTE WHITTLEY ARMEN SUNY

LEN SIMARD

Coronavirus And Your Club

HOW DOES IT AFFECT YOUR COVERAGE?

By Phil Harvey

Will property and casualty insurers pay out coronavirus claims? Here we are again in an industry that has pretty much figured out all the pieces of the puzzle.

Well, something new has arrived that in the end may create substantial business interruption, as well as potential Workers Compensation claim exposure to your staff.

As the threat of the coronavirus {COVID-19} outbreak continues to spread, the global economy is feeling the pressure to grapple with its effects. By the time this article is before your eyes for review, there may be over 300,000 confirmed cases across more than 180 countries. Who knows what the number of reported deaths will tally?

While the virus poses a significant threat in a health and benefits context, the spreading virus is also putting the global economy under strain by forcing business closures, disrupting the supply chain, shutting down global travel and much more.

How about exposure to Directors & Officers policies? Policies could be triggered by losses related to the coronavirus, because of members’ suits alleging unreasonable actions or inaction in response, to causing the club to suffer an economic loss. Executives and management of the club could be accused of failure to conform to government-mandated epidemic protocols or failure to properly apprise.

How about Workers Compensation as a responder on the club’s behalf? The big question here is whether the disease is related to one’s occupation. Chris Boggs, executive director of the Independent Insurance Agents of America, explains that a disease must pass two tests to be occupational.

Was the disease contracted during the course of employment? And was it contracted because of conditions “peculiar” to the work performed?

A great deal of the differentiation in qualification relates to the interpretations and intricacies of various state laws. Coverage in-

Although there is a great deal of conjecture among industry experts, epidemics and pandemics are often deliberately excluded from cover. Various covers will respond in different ways within the club industry itself, such as Business Interruption and Event Cover, which normally is specific in the cover whether it is included or excluded. In the past after the SARS epidemic, specific exclusions for bacterial or viral infections and standard pollution exclusions could result in denial of coverage for losses related to COVID-19.

In the past month there is already proof of concern among insureds. There already exists a good deal of speculation about what will be included and excluded in commercial P & C policies around the globe. Insureds will likely face high hurdles before claims are paid.

Although there is a great deal of conjecture among industry experts, epidemics and pandemics are often deliberately excluded from cover.

Various covers will respond in different ways within the club industry itself, such as Business Interruption and Event Cover, which normally is specific in the cover whether it is included or excluded. In the past after the SARS epidemic, specific exclusions for bacterial or viral infections and standard pollution exclusions could result in denial of coverage for losses related to COVID-19.

terpretation also suggests that a claim may be successful if proven that it was caught from a coworker.

Another issue that could complicate matters, if quarantine becomes more prevalent, then the interaction of being on and off the job may endanger the employee in contracting the disease because the employer placed the employee in an adverse situation.

All in all, it remains to be seen how the club industry as well as the global community itself, handles this new challenge! BR

Philip J. Harvey, Sr. is founder of Preferred Club®, Venture Insurance Programs. He can be reached via email: Pharvey@ventureprograms.com

SUGGESTIONS FOR SURVIVING COVID-19 DOWNTURNS IN FOOD SERVICE OPERATIONS

By Bill Schwartz

In the 40 years I’ve been developing and providing the FOODTRAK System to foodservice clients, I’ve never seen a situation as dire as the one we seem to be living in.

While I can’t provide a magic solution, here are some suggestions based on four decades of experience for how to reduce the impact of vastly lower sales on survivability, many of which I’m sure you already know about intuitively, but perhaps a reminder or simply my affirmation of your approach will help.

Cash flow is everything when times get tough, so it begs the question of how to maximize it. The primary approach other than finding ways to increase sales is to reduce inventory levels. Visualize a walk-in full of cash instead of food. In fact, if everywhere you see food you see cash, you are headed in the direction of recovering some of it.

Keeping inventory levels to an absolute minimum is critical in times like this. So how best to do this?

1. Find ways to use up what you have – Promote existing products that use excess inventory, develop specials and new menu items for takeout – or even offer bulk take out of excess product. Some clients are offering raw items to customers, in a sense acting as a grocery store.

2. Determine how you can operate with fewer inventory items. Trim the menu so you can use as few ingredients as possible in a dish. Many restaurants carry in excess of 500 inventory items (not including liquor). By reducing the number of items required, you increase cash availability. In many cases where take out menus are being developed, an opportunity to engineer a menu that accomplishes this goal is possible.

3. Order less and don’t be afraid of running out. This situation offers a unique opportunity to allow your operation to run out of ingredients without losing sales. People are sacrificing and adjusting to the new reality every day and will understand that you might be under the same strains when it comes to sourcing as they are.

Just look at the toilet paper run (which I can’t understand for the life of me) as an example. While it goes against every instinct we have as operators, running out is actually a good thing in this

situation. This is especially true for items that could spoil such as produce and seafood. Getting into the habit of under-ordering will offset the cost of over ordering and spoilage.

Think of it this way – if you order less, you spend less in advance which improves cash availability, keeps inventory low, reduces the potential for spoilage and might cause employees to be very careful about portioning.

4. Increase order frequency. This one makes sense in cases where you want to minimize inventory levels. In a perfect world, there would be no inventory. If you needed an onion, the Sysco guy would grab one off his truck and hand it to you. Unfortunately, we don’t live in that world, but the world we live in today is also hard to believe.

In keeping with my suggestion to order less, it makes life simpler if you can order less more often, in effect using your suppliers to hold your inventory. While increasing the frequency and lowering the volume associated with the order might incur a delivery charge, it may cost less from a cash flow standpoint to do that and have exactly what you need as things fluctuate wildly than having too much. If there is no additional delivery charge this becomes a nobrainer. Daily deliveries would be best case, and the closer you can get – especially with perishables – the better.

I’m hopeful these suggestions can be of use to you as we all try to get through this crisis. I will attempt to provide further suggestions for dealing with this situation from other angles going forward. Please be aware our team stands ready to help in any way we can. We truly appreciate having you as clients and remain hopeful for a positive outcome to all this.

Be safe, be strong, be optimistic, BR

Bill Schwartz is CEO System Concepts, Inc. of Scottsdale, AZ. He can be reached at (480) 951-8011 or via email: BillS@foodtrak.com | www.foodtrak.com

Reveal Your Professional Potential with an HFTP Membership

Take this moment to further your professional development.

As an HFTP member, you are given access to tools, events and resources designed to help you advance professionally. This includes a comprehensive collection of webinars and online informational resources.

Join the HFTP Global Hospitality Network

HFTP connects you with like-minded individuals who understand your unique challenges as a club finance or technology professional — helping you reach your goals.

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All Systems Go Important IT Security Measures for Clubs

“Have you been the victim of a cyberattack?”

The day was just about to start. Twenty-eight club professionals had gathered in Orlando, Florida recently for the second annual HFTP Club Forum. This event is comprised of an in-depth seminar and interactive discussion on a central subject impacting the club industry. Club technology happened to the subject for this particular forum.

The event’s facilitator, Bill Boothe, club IT expert and president/owner of The Boothe Group kicked off the ensuing discussions with the question: “Have you been the victim of a cyberattack?”

About one-third of the participants in the room raised their hands. In fact, Bill then pointed out, it was highly likely that many more in the room had been breached and just weren’t aware of it. Bill is someone who knows a lot about club IT and security – specializing in assisting private clubs and resorts with the planning, evaluation, selection and implementation of computer technology.

The scary truth of the matter is that data breaches happen all the time. That’s why it should be no less than a top priority for clubs to understand how to protect their data and computer systems from possible cyberattacks. And, they should also know what to do if there is a security breach.

The interactive discussions among the participants resulted in a comprehensive list of important IT safety measures that can help clubs prevent hacking and other types of cybercriminal activity.

Create strong, unique passwords: Update them often (and do not share your passwords with anyone else). Do you have too many passwords that make it impossible to memorize them all? Consider investing in a password manager. If two-factor authentication is an option, think about implementing it for an extra layer of security.

Reevaluate your Wi-Fi. Create a public, guest Wi-Fi network with an auto log-out function that is kept totally separate from your administrative/business Wi-Fi, which should be hidden from public view. Both should be password protected. Also, lock down your point of sale (POS) system so that it is not connected to the internet.

Filter your emails. Have a system that scans all incoming emails. You can limit or block communications from countries with strong cybercriminal histories. This is also very important: Do not open messages, click on links or open attachments in emails unless you know the source is legitimate.

Limit (and monitor) access to your systems. Only give access when necessary, and always monitor the access of third parties and mobile devices. Check IDs of outside service providers or technicians who are gaining access to your systems or server.

Three things you need: Firewall, virus protection and VPN. Configure and maintain your firewall, which is the wall of protection between your computer

and the network. Keep your anti-virus and malware protection software updated on all systems. Set up a secure virtual private network (VPN) for remote access.

Secure your payment processes. Verify wire transfers by phone. Consider using EMV readers for credit card transactions and payment card industry (PCI) compliance. Use encryption for sensitive payment information sent or received by email.

Train, train and train some more. Security starts with your employees. You can reduce human error and empower your employees to recognize potential security concerns through ongoing training. There are always new ways for criminals to infiltrate your systems, so be sure to keep your employees up to date on evolving cyber threats.

Then test, test and test some more. Test your backup system and make sure it is secure. Conduct penetration tests to see if there are any weak spots in your security. If possible, set up a warning to let you know if an intrusion is detected.

In times of trouble, turn to the experts. Have a dedicated IT resource or support team in place, whether onsite or outsourced, that you can contact for their expert assistance in a security situation.

Implementing actions like these will go a long way in minimizing risk and helping you protect your club’s data, network and computer systems from cyber criminals who are looking to exploit weaknesses in your security.

A full “IT Security List” of precautionary measures that were brainstormed by Club Forum attendees is available online at: https://www.hftp.org/hospitality_conferences/hftp_club_forum/ BR

Frank Wolfe, CAE is the CEO of Hospitality Financial and Technology Professionals (HFTP). Briana Gilmore is the communications coordinator for HFTP.

IDENTIFY AND HIRE TOP CANDIDATES

for key executive leadership positions by utilizing the expertise of the PGA of America’s Career Services department and Senior Consultant, Michael Leemhuis, owner of Leemhuis Consult LLC.

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DAVID W. LACEY

David Lacey is a member of the Philadelphia Cricket Club. He served two terms on the board of governors and chaired the tennis and paddle committee.

Who Are Your Leaders?

What Does Innovative Leadership Look Like?

We often answer these questions by pointing to a specific person. Sophie is a leader or Harry is a leader. Just look at what they do. Describing Sophie or Harry as a leader is a judgment based on observable behaviors. So here are specific behaviors on which a judgment about a leader could be based.

In a nutshell a leader at a club:

1. Coaches employees.

2. Relies on the goodwill of the operating team to achieve results.

3. Generates enthusiasm for the tasks to be done (execution) and the purpose of the club.

4. Says “we” a lot when describing success.

5. Fixes a performance shortfall but does not blame others.

6. Shows how to do your best work for a member.

7. Attracts and develops talent that is diverse.

8. Shares credit for an accomplishment.

9. Asks the operating team for input and is eager to learn how we can do better for our members.

10. Says, “Let’s do it together!”

These 10 behaviors describe a leader at a club. Use this checklist and describe examples of leadership at your private club. Take the time to prepare your list of examples and discuss them with your leaders.

In doing so, you will be surprised by the number of leaders you have and congratulate them for all their contributions to the club. You might say, “This is easy.”

However, a recent Gallup poll reports that employees in an organization receive three to four times more negative comments from bosses than positive. You can reverse that pattern by your actions of recognition.

At outstanding clubs recognized by BoardRoom magazine every year, a GM and the operating team demonstrate these core leadership behaviors. But they are also known for and respected by their peers for the number of innovative practices in effect at the club. Innovation at a club depends on a leader with an operating team who:

1. Displays a strategic vision – Innovative leaders are chess players who have a distinctive picture of what the club can become in the future. They can describe the destination and connect the current operating priorities to it. These leaders care deeply about idea generation and getting them implemented.

2. Has a strong member focus- These club leaders for sure are relentless about asking members what can be done to create a memorable experience for them and are insistent about creating it.

3. Creates a work environment of mutual trust with the team – Innovation has risk. Not all innovative ideas are successful. Quite often the idea is sound, but the execution or “getting it done” has fallen short. When those moments occur, there can be no punishment for the shortfall. Instead an innovative leader builds collaborative, trusting relationships with members of the operating team. That culture leads to an examination of why the shortfall occurred and what we as a team can do better the next time to avoid the shortfall.

4. Exhibits a fierce loyalty to doing what’s right for the member – Doing the right thing for the member and for the club as your “home” organization dominates the thinking and behavior of the GM and the operating team. Every other notion of effectiveness takes a back seat.

5. Commits to a culture that magnifies upward communication – Most innovative ideas that are the best bubble up from underneath. A GM can create a culture where every idea has value. Let’s use our energy and enthusiasm to uncork these ideas so they are visible, and rewarded at every level of the organization, especially at the first level of servers, housekeepers, bartenders, etc.

The core ten of leadership behavior plus the top five of innovation leadership can lead your club to new heights of satisfaction for your members. They work. Why not try them and in the process identify your club leaders. BR

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: drbon-nie@msu.edu

The Experience Train Has Already Left the Station

A while ago, I read an article stating that 2020 begins the experience age for the club industry. I couldn’t agree more that the experience age is upon all our clubs.

In fact, it is booming across virtually all traditional business models. Why? Because we are living and working in an economy that is over-populated with “things” at a time when consumers – i.e. our members – are rethinking how they choose to spend their time and money.

A recent survey shows that more than three out of four Millennials would rather have an experience than something material. This trend is swiftly spreading through every age bracket and every socio-economic segment.

But 2020 is not the beginning of the experience age for the club industry. That train has already left the station and it is gaining speed. If your club isn’t on board, you’ll be running to catch up.

As early as the 1980s, consumer behavior researchers began talking about the experiential aspects of consuming or buying. A decade later, others began noticing that consumers were behaving differently as they moved from buying functional or useful things to spending their time and money on experiences that focused on dreams, adventures, excitement, and feelings.

A Danish researcher, Rolf Jensen, called this trend the commercialization of emotions, saying, “In 25 years what people buy will be mostly stories, legends, emotion, and lifestyle.” Sound familiar?

The concept of the Experience Economy really came to the business forefront about 20 years ago when Joseph Pine II’s and James Gilmore’s published their landmark book of the same name. They pointed out that, “In a world saturated with largely undifferentiated goods and services, the greatest opportunity for [member] value creation resides in staging experiences.”

In other words, for clubs to attract and retain increasingly sophisticated and demanding members in a progressively competitive environment, providing good food, service, facilities, and events are not enough. Let’s face it. It’s too easy for other clubs to duplicate your signature menu, your membership structure, or the format of your invitational. And your club has probably done its share of copying too. Such is the nature of the 21st Century club business.

The experience age is good news for your club because, on the surface, your business is built on providing members with unique experiences. But if you dig beyond the obvious, this shift has also opened the door for more competition, making it harder for you to stand out.

Look at how movies have changed from a ticket that buys you an “airplane-type” seat with the opportunity to buy an over-priced bag of popcorn. But today, your experience can include reclining lounge

chairs with surround sound and servers who can bring you gourmet meals and top-shelf beverages. And, yes, you can still buy that over-priced bag of popcorn.

Then there is Capital One’s Capital One Café?

This unique venture is designed to “market a relationship-based banking experience to [customers] in a manner that speaks to them and their needs.” Is there a place in your club for something akin to a relationship-based pro-shop?

Then there are the likes of The Last Bookstore in Los Angeles that has morphed from just selling books to a book-lover’s dream with book tunnels and displays suspended from the ceilings. It also offers event space and an art gallery for bibliophiles. Demand is such that it has expanded while other bookstores were closing their doors. Could this be a hint for your library or card room or other underutilized space that could be turned into a relationship-experience?

Here are two trends that are driving the club’s experience economy train.

• Man (and women too…and even kids) does not live by cell phones alone. We are all at least somewhat addicted to our electronic gadgets. It isn’t uncommon to walk into your dining room or pass by the first tee and see heads down and thumbs moving across little keys. Sometimes the line between Facebook friends and real-life friends gets a little blurry as we are scurrying between various social media apps.

But, by definition, people are social animals. They need to physically interact with other people, or as the song made famous by vocalist Barbara Streisand says, People. People who need people are the luckiest people in the world. Flash! Social media cannot replace in-person interactions. Four out of five say that being at a memorable event makes them feel more connected to other people.

Millennials are getting married, starting families and even moving to the suburbs. They are entering what economists call their prime spending

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Maximize Social Media With the Right Tools and Tech

When membership directors are talking about digital marketing nowadays they will be hard pressed not to mention social media. Building a club’s brand awareness is one of first steps in attracting new members and social media channels are the new word of mouth.

Compared to a lot of other marketing methods, social media is one of the most cost-effective strategies – every major platform allows free business profiles. However, while social media might be easy to access, with the ever-growing list of platforms, this can feel like a daunting task. Luckily, there are a variety of different tools that can help you manage your efforts.

RESEARCH AND LISTENING TOOLS

While the latest Google tech may be a hot topic on Tuesday, a political fiasco may be trending on Thursday. Listening to your target audience and understanding what they are talking about can help ensure you’re part of the right conversation. Two tools that can help with this are Buzzsumo and Mention Monitoring. Buzzsumo can help you discover content and keywords that are currently trending, find influencers and share content to help ensure you’re always creating relevant and engaging content.

Mention Monitoring on the other hand can give you live updates about your brand on social media so you can easily join the conversation and manage the community you have already built more effectively. With this data at your fingertips, you can focus on future content, isolate areas for improvement and enhance your content strategy.

CONTENT CREATION TOOLS

Content has always and will forever be a main focus for digital marketers. If your audience isn’t interested in the content you are sharing it doesn’t matter how effective you are at reaching them, you won’t achieve the results you’re looking for.

Think about the types of content you are creating. Is it sleek? Is it original? Is it creative? With the right content creation tools, you can take your social campaign to the next level by creating customized images, infographics, videos and more.

One tool that can help is Canva, which helps you create stunning content designs, beautiful custom graphs, different icons and more. Not to mention, it’s simple to use. Even someone with no graphic experience can make professional designs.

CAMPAIGN MANAGEMENT TOOLS

If you’re marketing your club on social media then you most likely have multiple social media accounts. The only problem, managing

multiple accounts at one time can be time consuming and difficult.

With campaign management tools you can simplify this process. You can schedule your posts for your different accounts all from one location. Additionally, you can see what has already been scheduled so you can receive a bird’s eye view to help stay organized.

A great tool to help you manage your social media campaigns is Hubspot. It lets you link all your social media accounts so you can consolidate your efforts onto one platform. Additionally, it offers an easy to use dashboard to help you schedule, organize and track your social media campaigns.

ANALYTICS TOOLS

What are your best performing posts? What time do you get the most interaction? What social platform drives the most interaction? If you can’t answer these questions than it might be time to look into an analytics tool.

An analytics tool can help you gain valuable insight into what is and isn’t working so you can develop better campaigns. It can give you an overview of how your impressions, clicks, and audience have increased over time.

Sprout Social can help you measure your performance across different social media accounts, all from one platform. Within this platform, you can determine your best content, audience growth, competitor data and more. Increasingly, many social media platforms have their own built in reporting tools that can also provide valuable data.

With the right tools in place you can streamline your social media efforts, increase engagement with your campaigns and start to increase your pool of potential new members. Keep in mind, the tools listed here are only a few suggestions of many possible options available. Depending on your club’s needs and goals there is surely a tool to help you get results. For additional information, MembersFirst can be reached at (508) 653-3399 or info@membersfirst.com . BR

The 9-Word Email

There is nothing simple about simplicity.

And nothing more effective when it comes to branding.

MIKE PHELPS

Mike Phelps is principal and co-founder of Pipeline, a brand marketing agency specializing in private clubs and communities. www.pipeline.agency

The most successful brands make it easy for us to understand them. They use clear and simple messages.

They aren’t afraid of white space.

They know exactly what they want to say.

And they know exactly when to say it…and when not to.

Only a few brands do it well…evidence that simple is nearly impossible to achieve.

Want to see the power of a simple message?

Many clubs have a long list of people who, at some point over the past several months (or years) have inquired about membership. They’ve hit your website, filled out a form, or expressed interest in some other way. But for one reason or another they’ve gone quiet. It could be for any number of reasons. Regardless, these are the people that are still ‘active’ in your pipeline because they haven’t said ‘no’ yet.

We get asked all the time how to re-engage these people. Should we …

“add them to our newsletter distribution?”

“mail them our beautiful new brochure?”

“link them to our amazing new website?”

“send them our exciting new incentive?”

“email them all the wonderful things happening at the club?”

“call them?” (yes, that still works.)

Without dismissing any of these options, we must first answer one simple question: Are they still interested in membership? So, we email them and ask. Here’s where we keep it simple. Painfully simple for most of us. Send a short email to the list with only their salutation and last name in the subject line.

Subject: Mr. Smith

Body: Are you still interested in a membership at Bushwood?

That’s it. Nothing else.

We’ve now sent thousands of 9-word emails over the last few years with amazing results. I’ve never seen anything as effective. We typically get tons of positive replies and engagement.

Of course, you will also get plenty of ‘nos’ and people requesting to be taken off your list. These are people that shouldn’t be in your pipeline anyway and getting them cleaned off your list is a good thing. And, every once in a while, we connect with a prospect that ends up buying a membership right away. Based on the size and age of your list, you can generally expect the engagement rate from this email to be at least double your normal rate.

The idea is to send an email that sounds like you just ran into them (in person) at Starbucks and you’re asking them a question and are expecting a response.

• Short

• Personal

• Expecting a reply

We want the email to feel like they are the only person in the world getting this email. Believe it or not it can be a lot trickier than it sounds, because we’re so used to sending out messages that sound like we’re addressing a group of people.

Most emails are a mass communication – a group conversation, not a personal conversation. It’s like standing on a chair at Starbucks and yelling to everyone in the room. You aren’t speaking to anyone.

If you use email in the right way it should be a friendly dialogue. Most marketing emails either try to do too much, or they try to do too much, at once. We’re not really using it in a way that capitalizes on the ability for email to be a tool for dialogue, and a ‘conversation creator.’ Instead, we tend to use email as a word barrage or a ‘word blanket’ where you just throw it over everybody.

The simple dialogue method of the 9-word email is best when you ‘serve it’ exactly like a conversation. Just a really slow conversation. You know how it works. You see your buddy at Starbucks, then what happens? You say something. He says something. You say something. You are talking. An interactive dialogue where different actions happen, and each next action depends on a response.

We are always tempted to add more to it. We feel the need to pad it down and fluff it up. Believe me, you are going to be tempted to explain the reason you’re asking. “Are you still interested in a membership at Bushwood? Because if you are...have I got a deal for you!” Don’t do it.

The subject line is also simple for a reason. In addition to making the email feel like a friendly dialogue, eye tracking studies tell us that seeing our name in the subject line draws our attention and causes your eyes to dilate as you gravitate towards it.

It’s surprising how much science has gone into perfecting this simple little email. Perhaps that’s why it works so well. Simple, yet so powerful. BR

Mt. Shasta glaciers feeding ‘Shasta Springs.’

MEMBERSHIP COMMITTEE

TED ROBINSON

Ted Robinson is a partner with Private Club Associates and can be reached at (478) 741 7996 or by email: tcr@privateclubassociates.com

Building Relationships and Building Trust Visit Your Members

“Relationships are like the world’s most intense yoga! It’s a daily practice.”

– Tracy McMillan

“Relationships are the only thing that matter in business in life.”

– Jerry Weintraub

“Relationships are about helping motivate each other to be all that you can be.”

– David Archuleta

In 2012 BoardRoom magazine published my article, “Make a Friend Before You Need A Friend.”

Reading it recently brought back memories of many membership marketing successes, all of which were driven by effective and sincere relationship building. How do you do this – build a positive relationship with your members?

You do it the same way you eat an elephant - one bite at time. At a minimum your club must have a hospitality culture where every employee takes advantage of each possible opportunity to make all the members and guests feel welcome and wanted.

As a club manager or club membership director, take it upon yourself to “visit your members.” One of the most valuable steps you can take is getting to know your members on a one to one basis. Does it take a lot of time? Of course! Is it worth the effort? Absolutely – beyond your imagination.

Start with your board. Set up appointments to visit each director or governor at their office – and do it at least once each year. After the very short small talk (respect their time) have a short spiel about progress, issues, events and club successes - and then ask for advice.

Remember: “If you want advice, ask for money; if you want money (translated members, initiation fees and dues), ask for advice.”

Ask how the member experience has been. Is there anything they would like to share - anything they wish they had said on the club’s annual survey? Are there any suggestions for program, product, service or facility improvements? How is the board/management relationship working for them?

Eventually you can ask: “What are your thoughts or advice for me for recruiting new members? Often your host will respond with something like, “I have asked all of my friends” or “I have sponsored a number of acquaintances and family members and I am out of ideas? This is a point where you might suggest: Have you thought about the professionals in your world – your CPA, attorney, doctors, dentist, or others? Don’t push too hard?

Finish up with, “Is there anything I can do for you? Information? Reservations? Concierge Services” Then present a leave-behind gift – cookies, logo golf ball, special pasta from the chef, with a sincere thank you for seeing me.

Back at the club, your next step is a personally written, hand stamped “thank you for seeing me and for your great suggestions” bread and butter note. Any time one of the ideas or suggestions is implemented send another thank you or acknowledgment note. Be certain to make personal contact each time that director comes to the club. Following your meetings with the directors and officers, move to the committee chairs, and then the committee members. You will gain an enormous amount of respect and appreciation for making the effort to go to the members in their locations. Sincerely and effectively creating the relationships will not only build the membership but will provide you with abundant personal satisfaction. BR

FINANCE COMMITTEE

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.

What Is the True Value of a Chief Financial Officer?

“There isn’t enough money in the budget for that purchase.” “The food costs have risen two percent over the last two months.”

Are these typical comments when you think of a chief financial officer (CFO)? “No, we can’t do that” and financial results after the fact? Yes, CFOs do monitor, track and analyze financial results and are “accountable” for all accounting functions, but they are responsible for so much more.

One thing has become crystal clear – CFOs truly are the “courageous thought partners” of GM/COOs, boards of directors and department managers. CFOs obviously need an extremely strong and successful accounting background – CPA certification and/or CHAE certification reflects in-depth knowledge, commitment and grit. But they also need to be strategists.

I recently worked with Peter Cavitt, CFO of Harbour Ridge Yacht & Country Club and, as we were discussing the role of the next CFO at Harbour Ridge, Peter stated: “The CFO is the chief accounting officer, chief internal auditor, chief contract negotiator, chief insurance officer, etc.

“The CFO is as involved in every aspect of the management of the organization as the general manager. Every transaction at your club becomes a number and has cash involved. The CFO and accounting staff work with every department in detail; delve into variances with each department and each period; reviewing what worked and what didn’t. The only other person on the team that has that level of working knowledge of every department is the general manager,” he added.

The CFO is likely your primary contract analyzer and sometimes chief negotiator. As Cavitt said, “We check the math presented by a vendor. We look for the relationship between the numbers. Perhaps we can save some money. And when a construction draw is presented for payment, we check the unit pricing and totals, etc.

“During the renewal of various insurances, we complete applications and answer to what is new and/or different. We study the new proposals and challenge a result not favorable to the organization. We have to be on budget and our goal is to make that happen.”

Additionally, your CFO may be primary in answering questions regarding your legal documents and may assist the GM as a legal liaison with your legal counsel.

And the CFO is not just reviewing the past. They play a key role in strategizing for the future. Your CFO and accounting team work closely with every department and the general manager in creating the new fiscal budget – that means involvement in revenues, payroll, payroll burden and operating expenses.

“The CFO operates as a strategic partner, seeing into the numbers to translate the financials into the underlying story of issues and opportunities with a focus forward. The CFO’s key objective is to enable an organization to best achieve its mid and longterm vision,” Karie Torroll, CFO of Cherry Hills Country Club, told me.

“The successful CFO is tenacious about the continuous learning loop of understanding yesterday in order to provide the leadership team better insight on how to most efficiently and effectively operate tomorrow. This involves managing process changes to maximize efficiency and anticipating potential surprises or

challenges which may require course corrections in order to achieve targets and successfully execute the club’s strategic plan.”

According to Ray Cronin, founder and chief innovator at Club Benchmarking, “As the industry evolves in its understanding of the financial model for clubs, the mission-critical nature of the role of chief financial officer (CFO) becomes clear: Financial success is rooted in forward-looking capital planning and that task sits squarely in the purview of a person with the strategic finan-

LISA CARROLL

PETER CAVITT, CFO OF HARBOUR RIDGE YACHT & COUNTRY CLUB

KARIE TORROLL, CFO OF CHERRY HILLS COUNTRY CLUB,

FINANCE COMMITTEE

DAVID L. LUKER

David

L. Luker, CPA, is director,

Construction Contracting Approaches and Considerations

A critical component of every construction project is selecting the most appropriate contract type.

The most commonly used contract types include lump sum or fixed price, construction manager at risk, and design build. When selecting a contract vehicle, there are several factors to consider: project cost and size, complexity of the project scope and whether the schedule allows for a longer duration or requires a quick turnaround. Further considerations include the owner’s project management experience, staffing capacity and risk appetite. With these factors in mind, an owner should carefully select the contract type that is best suited for their needs.

LUMP SUM OR FIXED CONTRACTS

Lump sum or fixed price contracts are used when the design phase is 100 percent complete before bidding. The contractor is generally selected based solely on price.

This contract type is best used for projects with a defined scope and accurate and compete drawings. Typically, prototype structures such as franchise buildings, non-complex or single trade projects, or public works projects will use this contract type.

Lump sum projects are billed based upon their relative percentage of completion. This methodology requires a limited review by accounting. However, the owner’s representative or architect must perform thorough walk-throughs of the project to verify the percentage of completion is accurate.

These projects will typically require longer duration because the contractor is engaged after the entire design process. Project costs can increase through change orders for constructability issues, unforeseen conditions, or because the winning contractor submitted an artificially low bid to obtain the work. For these types of contracts, change orders should be closely monitored to prevent inflating the project cost through fee or overhead and soft costs.

CONSTRUCTION MANAGER

Construction manager at risk (CMAR) contracts are commonly used for large, complex, multi-phased projects, where time is of the essence. Construction managers are typically selected based upon their qualifications to perform the work and are procured early in the design process to aid in constructability reviews and cost estimating.

CMAR contracts should be clear and precise, avoiding ambiguous, incomplete, or silent contract language. What constitutes the cost of work should also be defined and monitored, including overhead or soft costs. Owners of CMAR contracts also have visibility into the competitive subcontractor bidding process, providing an opportunity to better understand who is actually working on the site, and to identify potential cost savings.

CMAR projects are billed based upon actual costs incurred by the CM and require extensive review of supporting documentation for pay applications by project management and accounting. The owner only pays for

actual project costs, plus the construction manager’s fee, allowing for greater transparency.

DESIGN BUILD CONTRACTS

Design build contracts are ideal for projects requiring the expertise of the designer and contractor working together, and they provide the owner with a single contract vehicle, (i.e. one point of contact for both design and construction services).

Design build projects typically include complex designs and specialized or unique scopes of work. Some vendors have both the design and construction expertise under one entity to execute the vision for this type of project, but many times a design or engineering firm enters into a joint venture partnership with a construction manager to create a single entity for contracting with the owner.

Because of the complexity of the deliverable, a strong prequalification process is needed to select the right team for the project. Functionally, dayto-day execution and monitoring of a design build project is similar to that of a CMAR (billing, change orders, project management, etc.).

While the perception exists that having a single contract for the entire project makes life easier for the owner, the reality is that in this structure the owner no longer has the perspectives of an independent design professional when evaluating the work of construction professionals and vice versa.

As such, owners contemplating use of design build contracts should have a strong project management team in place, and/or consider hiring a third-party owner’s representative to provide independent insight.

RSM construction risk professionals work with clients across the country to select the right contracting approaches for their project. We incorporate best practice terms and conditions into our client’s construction contracts, and help supplement accounting, administration and project management functions when their internal resources are constrained. For more insights and opportunities to assess your club’s readiness to embark upon a major capital project, feel free visit RSM’s construction risk advisory website https:// rsmus.com/what-we-do/services/risk-advisory/ third-party-risk/construction-audit.html BR

Executive Search Firm Leaders for the Private Club Industry

Does it make a difference if you are a manager at a Distinguished Club?

Of course, it does! Both general managers and department heads of clubs who have earned Distinguished Club status are widely recognized by Kopplin Kuebler & Wallace and boards as leaders at providing a great Member Experience. It makes you a very strong candidate for leading clubs searching for top club management.

The only merit-based award program that recognizes private clubs and their management for outstanding delivery of exceptional Member Experience. www.distinguishedclubs.com

Kopplin Kuebler & Wallace Partners pictured left-right: Dick Kopplin, Tom Wallace and Kurt Kuebler

Leadership Evolution

SAVOR THE JOURNEY

By Rick Coyne

This is a story about growth and learning, about leadership and about both savoring and sharing the journey…It’s the story of Mark Bado, general manager of Myers Park Country Club in Charlotte, NC and recently elected chair of the Club Management Association of America for 2020.

“Communities are unique, with each member contributing different qualities, supporting one another, interacting, sharing experiences and providing a deeper sense of belonging. As a resource, communities provide cross pollenization of member’s strengths and weaknesses, mentoring and providing the power of many. From family, to industry, to relationships to private clubs, a community’s values are the non-negotiable core principals and standards that set us apart and make us better human beings. I am truly blessed to have and understand the value of each community I serve.”– Mark Bado, 2020

As Mark began working life as an accountant at Oakmont Country Club, high achievement and leadership quickly materialized as his passion and he realized the pathway could only come through education, volunteering and surrounding himself with as many other successful, high achievers he could convince of his worthiness.

Obviously, a quest to change direction is not without sacrifice, your own and that of your family. Without his amazing wife Wendy, a highly successful and sought-after accountant and her self-sacrifice to change her career to a stay-athome Mom, as Mark points out, the story might well be written differently. No doubt this is a scenario that plays out for many men and women in our industry each and every day.

Mark’s early career lesson was that family must always remain a top priority, not only in his own life, but ensuring that this same priority was perceived and practiced by staff.

Mark’s accurate depiction of why this is important is, “How can we understand a family club environment if we can’t comprehend the importance of family in our own lives? Family dynamics means staying in touch with each family member and what’s important in their lives, not weekly, but every single day.

“High demand businesses like ours require the ability to be flexible and supportive of the team’s family time as well. A strong, well-rounded and happy team is invaluable in delivering a consistent level of service and attention to our members, because they know the importance of family.”

Mark’s core belief is that success is pushing yourself to always grow and enhance, aspiring to be the best, looking forward and not back, surrounding yourself with leaders. It has been said that you are the average of what your five closest friends are. Mark jokingly remarks that, “While I may sometimes drag my five friends down, I know that by these associations, I have become a better person, a better mentor and a better leader. Hopefully I may have helped others along the way.”

Mark’s advice for others is simple!

“Have a vision. My goal was to be the general manager of a large club and actually knew I wanted that club to be in the Carolinas. The key in setting goals is to dream big and work every day toward achieving your dreams.

“As we share our experiences through mentoring and conversation, learning in each step of our development, remember that the interaction is likely providing someone else with tools that will enhance their quest for the golden ring. Sharing is caring and caring is what we do best in this great industry.”

Watching highly successful mentors and icons delivering powerful speeches, sharing their vision and representing the pinnacle of leadership in our industry stand out as some of Mark’s earliest recollections of CMAA conference and the opening and closing ceremonies.

“I frequently asked myself, how can they be so confident and sure? A quote from the Walt Disney family goes something like, “Faith is not about belief, it’s about commitment.” While we may always have faith and belief in our aspirations, as my good friend JJ Wagner once confided, “Unless you make the commitment to lead and all that requires, your vision will always be elusive.”

Mark’s vision is, “Our industry is ready with countless new opportunities, but if you are not evolving at the tempo of change, you are simply asking your members to go somewhere else that is providing the relevance they seek. Knowing what to do is simply about

asking, doing the research, understanding your market, knowing the trends and best practices. It’s what good leadership is all about.”

“The private club future is bright if we choose it to be so. Remaining the same, ignoring the obvious change in society and not being more inclusive to the changing needs of generations, gender and family will only push your relevance factor further from your member’s needs. Add the services your community is telling you it wants. Keep listening, acting and improving,” he added.

One of Mark’s observations is that technology in our industry is 10-20 years off many club’s radar. “We have systems today that help us market, help us brand, market and become relevant to our members. Other systems provide personalization and member relations management tools that were unheard of only a few years ago. Embrace technology, make it work smarter for you. Technology is our future.

“Hire well, seek the exceptional, communicate and share core values and trust. Hire people that are better than you. Make accountability real. Build and share strategies. Team is crucial in delivering on your promise and creating loyal ambassadors.”

His view of the future is that it will not be without potential threats. “Educate, educate, educate. The better staff is prepared to answer any questions on any club matter presented to the team, the more you are prepared to educate your boards and committees. In the event of a downturn, be judicious in altering the way in which you do business. Remember, members join and remain members because of the services we provide. Each service that is taken away, lessens value, loyalty and commitment.”

Mark’s final note on leadership growth: “Each generation comes with its own combination to the ‘wants and needs’ safe. Unlocking each new generation’s potential should never be perceived as a lessoning of value to our mature and loyal tenured members.

“Remember that they need attention and are as valuable as the next generation. Address senior’s and other generation’s needs adding new and different ways to engage for their enjoyment and participation. The old adage that ‘we can’t be all things to all people’ simply isn’t true. We can if you make it all about community.”

“I look forward to continue serving CMAA and the private club industry with my total commitment. I know I will savor the journey…I hope you savor yours as well.” BR

Rick Coyne is president, ClubInsights and a frequent contributor to BoardRoom magazine. He can be contacted at via email: rcoyne@clubinsights.com

BoardRoom magazine Recognizes the Private Club Presidents of the Year

By Meghan Thibault

Now in its 12th year, 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 24 presidents for 2019. 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. See pages 58 & 59.

To view all the Distinguished Club Presidents from the past 12 years, please visit: www.boardroommagazine.com/presidents.html

Real World Challenges. Proven Solutions.

As a division of Troon® , 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 f ield associates to focus on Club specific, shorter term challenges and opportunities.

ALEXIS W.V. BOVÉ, PRESIDENT | WAYNESBOROUGH COUNTRY CLUB | PAOLI, PENNSYLVANIA

In the months following Alexis Bové’s election, the Waynesborough Country Club approved an $8 million facilities master plan. As club president, she spearheaded the strategic planning process and amid this work, handled a transition to a new general manager at the club. Working alongside the existing management team, she ensured the right candidate was chosen.

Bové showed great vision as the club launched its first membership trial program, which has resulted in exceptional membership growth. “I am committed to preserving the traditions that make Waynesborough so special to my family and eager to create positive changes to meet the needs of current and future members,” said Bové.

In her time as president, Bové created an atmosphere of transparency through improved communications and has regularly sought feedback from members, committees and staff. Evaluating their input, she seeks recommendations from the club’s management team to address concerns.

Her transparency and communication, as well as her adherence to the club bylaws, have led to consistent and credible leadership from top to bottom. “Alexis is an outstanding leader. She understands the nuances of the board to management relationship, and works diligently to maintain the proper balance,” said Waynesborough GM Joseph Furko.

The club’s board establishes policies and focuses on strategic planning. Bové chairs the strategic plan committee meetings. “At board meetings and beyond, she keeps the governors focused on matters of strategic planning, leaving discussions of day-to-day operations to the management team,” noted Furko.

“She has said to me many times, ‘Joe, if I’m getting out of my lane, let me know,’” he continued. “We meet regularly, one-on-one and her trust in me and my team to handle club operations is what sets her apart as a top private club president …one of the best I’ve worked with in my career.”

As a legacy member, Bové recognizes the importance of maintaining the club’s rich traditions, while also looking to the future. She is committed to creating positive changes to meet the needs of current members, attract new members, and sustain the club for future generations.

Bové spent her childhood at Waynesborough Country Club before joining with her husband, Mike, in 2004. A mother of four, she holds an M.S. in Clinical Psychology from Drexel University, is a graduate of Villanova University School of Law, and has a long history of service to Waynesborough Country Club. BR

ANDREW FROMM, COMMODORE | THE SAN FRANCISCO YACHT CLUB | BELVEDERE, CALIFORNIA

Andrew “Andy” Fromm grew up as a junior member of the San Francisco Yacht Club (SFYC), learning to sail in San Francisco Bay as early as age 10. As an adult, he became very active in the club, serving on the finance, house, race and youth sailing committees. Fromm was elected to serve on the club’s board and ultimately selected to serve through the “chairs.”

According to the protocols of yacht club governance, the “chairs” are made up of the flag officers, known as the Rear Commodore, Vice Commodore and Commodore. An invited member typically

serves for a year in one of the first two roles before ultimately serving as Commodore, effectively the CEO of the club.

Across his various committee assignments, his tenure on the board and his service as a flag officer, Fromm has demonstrated a passionate and extensive commitment to service in his 50 years of membership at SFYC.

Fromm’s year as Commodore was eventful and successful. He chaired the committee involved in a nationwide search to replace the club’s long-serving and respected general manager, who had retired just before Fromm took on the role. SFYC’s new general manager began his career at the start of Fromm’s year as Commodore, sparking a remarkable professional relationship.

Fromm’s first year was challenging and required out-of-the-box thinking on a daily basis. While the club’s new general manager got his “sea legs” and the club began the demolition and construction of a new banquet center, every day brought new challenges.

The club also celebrated its 150th anniversary in 2019. As the oldest yacht club on the west coast, many events and promotions were planned, culminating with a 150th-anniversary gala, which was an event that broke all club records. Fromm led the board and membership with professionalism, grace, energy and business acumen. Fromm grew up in the Bay Area, graduated with a degree in business administration from St. Mary’s College, and has been in a leadership role in the wine industry for over 40 years. He and his wife Lori, with their dog Hennessy at their side, live near the club and enjoy sailing San Francisco Bay aboard their boat “Full Circle.” BR

ALEXIS W.V. BOVÉ, PRESIDENT JOSEPH FURKO, GM

ANDREW FROMM, COMMODORE DAVID ROBINSON, GM

PATRICK

During Patrick Britt’s tenure, he was able to build consensus between board members and the club’s full membership to approve a significant capital infusion program, a program designed to address several capital needs that had previously been deferred.

Britt also worked to re-align committee and board involvement to focus the volunteer leadership on strategic decisions, leaving the operating decisions to the club’s paid staff. The club has

subsequently been able to focus on improving existing amenities while planning and implementing projects that will add facilities to offer new amenities. Projects include developing programmatic offerings that will appeal to all demographics of the club.

“Britt is a visionary leader and consensus builder who works to bring all parties together to achieve a positive result that is in the best overall interest of the club,” said Stephen Hartman, the club’s general manager. “He leads in a very democratic way, allowing all voices to be heard. His style finds the best outcome for all individual constituencies involved.”

Britt also worked to strengthen vital committees such as the long-range planning committee. Doing so has allowed the club’s board to actively review and improve its strategic plan. Under Britt’s leadership, the board has refocused its efforts on strategic and policy decisions, while allowing management to run the daily club operations.

Patrick Britt earned his B.S. in accounting and an MBA with a focus in finance from Rockhurst University. He works in the financial services industry as managing director at Clayton Financial Group. An avid golfer, he also enjoys coaching his kids’ sports teams and cheering on the St. Louis Cardinals and Blues. Patrick and his wife Emily live in Pasadena Hills with their son, Jack, and daughter, Maggie. BR

BARRY GORDON, PRESIDENT | ADDISON RESERVE COUNTRY CLUB | DELRAY BEACH, FLORIDA

Under Barry Gordon’s leadership, Addison Reserve Country Club made a strong and synergistic merger with the club’s Master Property Owners Association, providing many tax advantages and other key benefits.

Construction of the club’s new lifestyle complex in 2017 marks Gordon’s other significant achievement.

The club’s lifestyle complex has become a hub for outdoor activities and wellness and signaled a pivotal improvement that is likely to alter the complexion of Addison for years to come.

“Gordon’s philosophy is that the board’s function is to receive and analyze input from club members and incorporate these into the goal setting and policies of the club,” says the club’s GM Michael McCarthy.

“Under his guidance, the club’s reserves have grown exponentially, and the club has experienced an operating surplus each year while offering many more amenities and services to its membership. A recent survey showed member satisfaction above 90 percent.”

The composition of the club’s board and their coordinated teamwork has been most impressive. The club’s professional management team addresses operational issues, creating member confidence in the club management’s ability to deliver services without a political agenda.

According to colleagues, Barry Gordon exemplifies the club’s mission statement – ‘Excellence is our standard.’ His diverse business and financial background lends itself to dealing effectively with board matters, club finances, operational intricacies, club management and personnel. Gordon has experienced many changes at the club that have facilitated his decision making.

Being a club resident is no easy task. Taking on that responsibility for five years is a heroic task, especially in a south Florida gated community when the members never go home.

“Barry’s dedication, commitment, passion for excellence and leadership skills are Barry’s strengths,” explained CEO/GM Michael McCarthy.

“Over the seven years he has served on the board, five as chair, he spearheaded the amazing $25 million lifestyle complex, which has become a hub for outdoor activities and wellness and signaled a pivotal improvement that is likely to alter the complexion of Addison for years to come.

“At the same time, Barry saw the opportunity to merge the club and the Master Property Owners Association to save his fellow members and the club significant tax advantages and other key benefits,” McCarthy added.

McCarthy had this to say in closing, “as Barry leaves the board this year, he will be greatly missed by the members, the board and the team members that have worked closely with him all these years.” BR

PATRICK BRITT, PRESIDENT STEPHEN HARTMAN, GM

BARRY GORDON , PRESIDENT MICHAEL MCCARTHY, CEO/GM

NANCY’S CORNER

NANCY BERKLEY

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. She shares news about women’s golf – along with her opinions on www.nancyberkleygolf.com. Nancy has served on the governing boards of two golf clubs and currently is on the green committee and marketing committee at Frenchman’s Creek Beach & Country Club. She is a contributing writer for LPGA publications.

Use Your Golf Instruction Program To Grow Your Membership

There has never been a better time to focus on golf instruction.

The number of golfers including those who do not play full 9-hole rounds but “touch” the game – to use the new measurement of the National Golf Foundation (NGF) – is increasing. Those golfers will be a great market for golf instruction. See the NGF report at https://www.ngf.org/report/golf-instruction-report/

More relevant, according to the NGF is that women are more likely than men to take lessons. Since women are key decision makers in whether or not to join a golf club, it’s a good time to look at your club’s golf instruction program and its appeal to women.

I want to share my latest lesson experience to make a point. I was struggling with bunkers and my bunker-fear was affecting my entire game. I took a series of lessons with one of my club’s excellent instructors.

I thought I was doing everything right during lessons regarding my stance, the club face angle, the back swing, the follow through and so on. In spite of the fact, that many other members had mastered the bunker shot with the same instructor, I made little progress on the course.

And then on a visit to a former golf club where I had been on the board and chair of the golf committee, the club’s Director of Golf and PGA Golf Professional, asked, “How are you doing?” My reply: “Terrible! I can’t get out of a bunker.”

He replied, “There are only two things you have to do: Elevate and accelerate.” “Wow” I thought to myself, “That’s it?” And, those two simple thoughts did it for me regardless of what club I used in any bunker.

My point: Golf instruction is really complicated. There are so many different teaching methods. And, every golfer learns differently. And in that challenging environment, your golf club instructors have to meet the different learning curves of members with many different skill sets.

I predict that an upcoming challenge for golf club managers may not only be the promotion of its golf courses but also the golf instruction staff and program as well. And that promotion to prospective members must be more than a walk through the Pro shop and a handshake with the director of golf.

Here’s a quick check list of what I recommend:

1. When a prospective member visits your club, arrange an introduction with your head golf professional, a senior member of the staff or one of the instructors. Ideally, if the prospective member has not played your course, take them out for a tour. And they will also be very impressed if your golf course superintendent happened to drive by for an introduction!

2. Offer a nine-hole round with prospective members and one of your club’s instructors. The complimentary two hours is a great investment and much better than just a “complimentary” round to view the course.

3. Develop a brochure about the history of your golf course and its unique features. Include some quotes from members or instructors. Highlight the background of your instructors and pro shop staff. And don’t forget to include your programs for children and teens – a segment worthy of increased attention.

4. Provide formats that welcome new members such as a “New Member Scramble” playing with an instructor. This combines learning the course, taking some tips from a pro and making new friends.

This should be a great golf year. The 2020 Olympics will include golfers from 60 countries in late July and early August. Plan a “watch party” where members can watch the rounds over breakfast, lunch or cocktails and dinner.

If you have recorded the Olympic event, you can play back the recording and your instructors can explain why a two-foot putt was missed or how a sand shot landed a foot from the pin.

That could be a great event to invite friends to meet your golf staff and instructors. All golfers love to learn to be better. That’s why your golf instruction program is so important and a great source of new members. BR

DAN SCHMITZ

Dan Schmitz is the owner and director of club partnerships for KE Camps. He can be reached at (877) 671-2267, ext. 400 or via email: Dan@kecamps.com

Commit to Family in 2020

Your club is all about family…and if it isn’t, it should be!

The importance of providing the entire family with a memorable and engaging experience is essential in today’s child-focused world. Committing to youth-centered programming leads to new member acquisition and increased member retention. Now that’s the way to start the New Year!

Children’s programming helps recruit new members. By permitting members to have guests accompany them to activities such as gingerbread house decorating during the winter holidays or a Memorial Day pool party, these guests have the opportunity to “sample” your club. Chances are, they’ll want more of it!

The more family-friendly activities you offer, the more likely you are to see increased attendance (i.e. a couple will be able to sign up for Lobster Night if they know they can take their children with them for Kids’ Movie Night and not have to find a babysitter). Consider taking this a step further and even offering limited programs for non-members, resulting in new exposure for the club.

Your most untapped resource is often your built-in audience – your current membership. It’s important to note that children are a part of that. Your members want to spend time at the club, so give them a new reason to do so.

While annual dues are likely increasing, your programming should expand as well. Not only will this keep your activity list fresh and competitive, you will give your youngest members a reason to feel more connected to the club. In turn, parents will see an enhanced value in their membership since it is now benefiting the entire family.

Of all the activities you can offer, the one that’s sure to impress is a summer camp since it is more than a one-time event. Whether you manage the program in-house or outsource to a professional camp operator, consider these benefits:

• Increased participation in your junior programs. Including beginner golf and tennis instruction at camp will expose children to these life-long sports, resulting in increased enrollment in your junior golf/tennis programs and private lessons. Camp golf and tennis can certainly be of a less intensive nature than your junior programs, so they will not compete with one another.

• Extra time at the club. Summer camp provides the added bonus of increasing the amount of time parents spend at the club (think daily drop-off and pick-up). In turn, they are likely to use more services. Perhaps a parent will stay for an extra fitness class in the morning or the whole family will stick around for dinner after camp.

• New connections with your staff team. Summer camp gives your staff a chance to get involved with something fun and unique.

Perhaps the club’s fitness instructors can lead a group fitness program, or maybe your chef can host a children’s cooking class. These “extras” are opportunities for your staff to connect and build lasting relationships with your members, further solidifying your club’s place as a “second home” for families.

One of the most important advantages of positioning your club as family-oriented cannot even be measured in time spent at the club, revenue produced, or membership numbers. A family-friendly atmosphere creates a shared experience between members and a sense of community within the club. It also gives parents the comfort of knowing their children are having fun while in a safe and protected environment.

In our increasingly digital world, face-to-face interactions have become less of a priority but are more important than ever. While offering periodic events throughout the year like kids’ nights and holiday parties is an important first step, offering consistent and long-term programming is what will establish your club as truly family friendly. BR

BE UNIFORMLY GREAT

Great staff uniforms have the power to boost your brand and your staff moral. That’s where High-End Uniforms comes in. For 20 years, we’ve lived by the motto “Presentation is Everything” (and we have awards to show for it.) But we also understand that partnership with our customers makes it all possible.

Connect with us for an inital, no-obligation design consultation. You’ll share your business’s story and uniform needs with one of our experts, and based on your chat, we’ll assemble an array of unique apparel options for you to consider.

Visit us online to see our c ollection. (707) 746-7011 WWW.HIGHENDUNIFORMS.COM SA LE S@HIGHENDUNIFORMS.COM

BOARDROOM PERSPECTIVES

GORDON WELCH

For more information or a copy of BoardRoom Institute’s complete board assessment contact Gordon Welch at gordon@BoardRoomInstitute.com or call (918) 895-2723.

Board Composition Matters!

It is never too early (nor too late) to begin recruiting your board members.

When I hear that a board is disengaged or ineffective, I ask that ageold question: Do you recruit your board or does it just “fall into place?” I hope for your sake and that of the GM/COO the answer is recruitment!

Not surprisingly, the easier it is to get on the board (i.e. the less deliberate recruitment), the more likely there will be a low level of engagement. A rigorous recruitment process often leads to a higher level of engagement, if you can get your members buy-in.

The more carefully selected board members are, and the more specific expectations are, the higher the probability the board will be true partners in your club’s leadership.

If your board is disengaged, it’s time to look at your nominations and selection processes to build a board with the right mix of skill, knowledge and other characteristics to perform at your club’s high standards.

Research shows us that a board that is deliberate and is a “competency-based” board will produce results. However, sometimes that comes at a cost of relational dynamics.

At Boardroom Institute we have many samples in our “vault” system that include:

• A board-skills matrix that can be used to align candidates with the competencies needed to balance your board

• Guidelines for appropriate committee deliberations regarding confidentiality, rumors and innuendo

• An application form for potential board candidates

• A sample matrix used to score multiple board candidates according to their skills, experience, competencies and geographical region, and

• A list of questions and a detailed guide to use when interviewing board candidates.

These resources can be adapted to fit the specific needs of your club and its personality. Use these tools and templates as part of your learning and implementation process towards building a better board.

THE RECRUITMENT PROCESS?

So, you may ask, who should manage the board recruitment process? It will be different for each club but here is a guideline:

In some small private clubs, board members or committee members recommend or refer individuals for consideration by their board team or an executive committee and staff.

Larger clubs generally create nominating or board development committees that manage the entire process. These committees are usually

appointed by the board and include current and past board members as well as past presidents of the club to offer “a mix of perspectives.” The nominating committee is often chaired by a past board chair and may be a year-round standing committee or a committee struck when there are board vacancies.

Of course, the structure or membership of your board selection team or committee should be customized to suit your club’s needs and may even be stipulated by your bylaws. The key is to have a group of individuals committed to taking the time to establish and follow a structured process.

Here are four simple steps to the board recruitment process.

Step 1: Define your needs: To ensure an effective, highly functioning board, you need to define the role and expectations for board members. This means defining the job, understanding the skills required to be successful in that job, and identifying the values and qualities that will enable the member recruit to become part of a cohesive board team. It’s also important to establish specific expectations for individuals and the board as a whole, in order to set goals and evaluate performance.

Do you have a job description? Just like the hiring process for a paid job, when you are recruiting board members, you start with a job description that outlines: the position’s key duties and responsibilities; the necessary requirements to fulfill those, and details on what the commitment entails.

Here’s an outline of the type of information to include in your job or role description. You can use this as a guideline to draft a job description that meets your club’s specific needs. Some information you may want to have available for interested members

Benefits:

Responsibility and Authority:

Term:

General Duties:

Time commitment:

Legal / Financial commitments:

Fiduciary responsibility:

Qualifications / Skills Requirements:

Step 2: Find candidates: Referrals and word-of-mouth. Publicize within your club’s subcategory of members, i.e. wine club, golf, ladies’ organizations, etc.

Step 3: Screening and selection: Application form. Screening/interview process.

Step 4: Provide an orientation for new board members: Congratulations – you’ve selected a new board member. But the process isn’t quite over yet. You need to orient your new board member so they are ready to take on their new role. The orientation format can be done through providing a welcome package of information, an orientation video, a presentation or a training session – depending on your club and its specific resources and needs. However, at a minimum, new board recruits should receive the following information:

• An overview of the club – its history, mission, vision, values

• Organization chart – outlining structure (i.e. board, committees, staff roles and responsibilities etc.)

• Organization’s annual report and any other pertinent financial reports

• Role description (and any additional documentation or forms that need to be completed)

• The club’s five-year strategic plan

• Most recent board meeting minutes

• The club’s most recent newsletter and/or brochure

• Schedule of board meetings, annual meetings, board development socials and any other events that board members are required to attend, and

• Contact information – board chair, members, staff contacts etc.

All clubs and their boards vary and function differently. These are general suggestions and basic guidelines. There is so much to do and to consider when “hiring” your board. And don’t forget to include your general manager/chief operating officer in the process.

They may say they don’t want to play a role in the process, but I feel it’s imperative they do. Your GM/COO has great amount of ownership and discipline in operating the club and being a part of this process will hopefully open the channels of communication and create a better board dynamic. For more information or a copy of BoardRoom Institute’s complete board assessment contact Gordon Welch at gordon@BoardRoomInstitute.com or call (918) 895-2723. BR

HISTORICAL COMMITTEE

TOM NEILL

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.

Who is Your Golf Course Architect?

On a recent trip to the Walt Disney Concert Hall in Los Angeles, I stood and marveled at the building before me – the curves, the sweeping angles, the glistening metal and the strength of this building holding up its mass.

The designer, Frank Gehry, world-renowned for creating such magnificent structures, is certainly most celebrated for such a masterpiece of design. Tributes to him can be found both physical and published.

While Gehry’s designs reach for the skies, golf course architects working on a horizontal plane, is a notable art of design, with curves, undulations and thoughtfulness to the earth and surroundings – and the golf course architect should be celebrated too.

The Riviera Country Club in California has dedicated an entire room to George C. Thomas Jr. as their golf course designer and architect. Mr. Thomas is widely remembered, and his work in the 1920s California secured his legacy. He rated Riviera as his masterpiece, with its rich and storied history and it remains his best-known and highest-ranked work to this day. Thomas stated, “As I go back over the years of my golf there are many faces which come before me. They are not alone of those with whom I have constructed courses, for to the learn golf architecture one must know golf itself, its companionship, its joys, its sorrows, its battles – one must play golf and love it.”

For a course of any age, creating a tribute can involve finding original course drawings, a biography and photo of the golf course architect, photos of the course being constructed, and other memorabilia from the early years.

LEGAL

COMMITTEE BY ROB HARRIS

Whether it’s an entire room, or a small display, paying tribute to your golf course architect serves in not only educating your members and guests, but celebrates the genesis of your course. BR

Hermes Purse Is Victim of Red Wine Assault

Litigation can take unexpected twists and turns.

So we are learning from the life changing suit brought by Maryana Beder against New Jersey’s Alpine Country Club.

Ms. Beder claims to have suffered damages when a waiter at the club poured red wine all over a Hermes purse valued at $30,000. As described by the Washington Post,

“Perhaps for as long as they have existed, the gold-accented Hermès bags, named after Grace Kelly, have been considered a sign of luxury, in no small part due to their high price tags and limited quantity. The bottoms of the bags are crafted with three layers of leather, and celebrity owners include Jennifer Lopez, Victoria Beckham, and Kylie and Kendall Jenner.”

The club, believing that liability, if it existed at all, was the responsibility of the waiter, briefly brought him into the litigation as a counterclaim defendant. However, whether reconsidering based on media coverage or other reasons, the club filed supplemental legal documents withdrawing the claim against the waiter.

However, the club’s attorney in a new development has asserted that the purse may be a fake, asserting that “there are serious issues regarding the authenticity of the bag.” Ms. Beder’s attorney has strongly disputed these assertions, stating that the legal team has not one, but two, authentication reports in its possession. Stay tuned. BR

Jerry N. McCoy, MCM, is the president of Clubwise, LLC, a consulting firm specializing in strategic planning, master planning, operational audits and governance issues. Clubwise won BoardRoom Excellence Awards in 2017, 2018 and 2019 for Strategic Planning, Capital Funding and Facility Enhancement. Jerry received the Lifetime Achievement Award for BoardRoom Magazine in 2018. He can be reached at www.clubwiseconsulting.com or CMAAMCM@msn.com

Making Logical Decisions Regarding Capital Investment

‘Please, Please! Let me Pay FULL Retail’

Let’s assume you want to buy a house. You are shopping for the house with your real estate agent. She is showing you a number of options and you find one you like.

The agent says it’s listed at $350,000. Your first thought is great. Where do I sign!!!!. No, this is not your first thought. You normally counteroffer at say $325,000.

Now I do understand that there are market principles at work here. In some markets a great house goes on the market at $350,000 and it immediately has three offers, sometimes at more than the asking price.

Here is another example. You want to buy a car. You find one you like and then just accept that what the sticker on the window says is what you pay. You may shop other makes at other dealers. You may shop the same car at more than one dealer. All for the purpose of getting the best deal on the car.

Why, because it’s your money. There is a lot of capital investment going on in clubs today. The problem is that many leaders do not enter into the process as if they were spending their money.

The club industry is a tight knit industry. Leaders follow what is happening with their competition and determine what they need to do with capital investment to stay competitive. Let’s assume that you are aware of a firm that helped a friend complete a renovation of their club.

You get positive feedback from your friend that this is a good company to work with. You call them up and say you have a project. You meet with them and are ready to start. They send you a contract and you sign it. You just bought the car at full sticker price

There are several good master planning and architecture firms specializing in the club industry. In essence, based on their body of work, they are all pre-qualified to do the job. If you ask these firms to interview and give you a price to complete the work, then you can compare the cost of one firm against another. It is amazing how fees can vary. You can spend hundreds of thousands of dollars more than you need to if you are not careful.

Firms may be willing to negotiate based on the project and how busy they are at any given time. The larger the project, the lower your fees should be as a percentage of the work.

Sometimes the project is relatively self-explanatory. You may have very good management that knows exactly what they want and don’t have to spend extra on firms that have extensive club experience. Local planning/architecture firms can fill the bill. They are normally going to be more competitive on fees.

Consultants that bring club design expertise to the table are another option. Many times, it can be less expensive to hire the consultant and a local firm than it would be to hire a major national firm.

Often these large companies will eventually charge you nine percent of the project or more while you could get local expertise for seven percent or less. Local architects want to build their portfolio within their market and the club can be a prestigious addition to their portfolio.

There are some clubs that have positioned themselves well over time. They have great relationship with good firms who are charging fair rates. They have members who have expertise in the architectural or interior design field. And most important, these members have no interest in doing the work themselves. Projects are well designed, function well and serve the membership by providing a high degree of value and satisfaction.

So what’s the moral of the story? Beware, use due diligence and remember it is the member’s money. Treat it like it’s your own money. There are a lot of cost saving opportunities when dealing with planning and construction. Companies will take what they can get. They are not trying to cheat you. They just believe they are so good they are worth the markup.

Have you heard this one?

This architect dies in a tragic accident on his 40th birthday. He ascends to heaven where he’s greeted at the Pearly Gates by a brass band and Saint Peter, who shakes the guy’s hand warmly, and says, “Congratulations!” The architect is a little confused. “Congratulations for what?” he asks. “Congratulations for what!?” says Saint Peter. “We’re celebrating the fact you lived to the grand old age of 160.”

The contractor says, “But that’s not right - I only lived to be 40.” “That’s impossible,” says Saint Peter. “We added up your time sheets!” BR

LEGAL COMMITTEE

Capital Investment

Is It Really Do or Die?

MICHELLE TANZER

Michelle Tanzer, Esq. serves on the National Club Association board of directors and is legal counsel to the Club Spa & Fitness Association. Michelle arbitrates club related disputes for the American Arbitration Association’s (AAA) National Golf Industry Panel and authored “The Club Litigation Book: Keeping Clubs out of Court.” Ms. Tanzer is chair of the Global Club and Branded Residences group at the law firm of Nelson Mullins Broad and Cassel and can be reached at (561) 866-5700 or Michelle.Tanzer@NelsonMullins.com.

Almost all clubs were initially established by a developer or other sponsor investing significant capital to acquire and/or construct the club facilities.

This capital infusion was essential to get the club started and was typically returned to the sponsor by way of some form of membership purchase payment. For decades, the most common form of purchase payment was a capital deposit refundable in whole or part when the membership was reissued to a successor member.

This formula worked really well for the developer selling memberships, but not so for well for clubs and their members over the long-term.

The marketplace embraced the sponsors’ strategy for many years, all while the demand for golf and club memberships continued to grow. The refundable component of the membership payment enticed members to pay prices higher than they would otherwise pay for a non-refundable product.

Fueled by the growth in the industry, membership purchase prices continued to climb. Members felt confident they would receive a refund when they eventually resigned from the club. But this was before “Ponzi Scheme” and “Bernie Madoff” were household names.

In those days, when a membership was reissued, a resigning member would typically be paid less than the amount paid by the new amount yielding net cash to the club. This positive spread between the capital coming in and the capital being paid out allowed the club to easily establish a capital reserve.

These reserves provided the necessary funds for continued capital repairs and improvements. Unfortunately, neither the natural escalation of prices nor the increase in demand for memberships could last forever.

Today, more and more clubs are faced with deficits in capital because of their obligations to pay more to resigned members than what is being received from new members. According to data obtained from nationally recognized industry experts, approximately 30 percent of clubs in the United States have their net worth shrinking, due in large part to refunding capital to former members.

These clubs are faced with a very difficult choice – either forego capital expenditures or find alternative sources for

capital. When no other sources are available, necessary repair and maintenance is not performed and updated or expanded facilities are not provided for members.

These industry experts have concluded that failure to perform this maintenance or provide new facilities triggers an unbreakable negative cycle…narrower and less attractive amenity offerings, decreased membership satisfaction, lower initiation fees and then fewer members. This cycle has already forced the closure of some clubs and will likely cause more to follow.

What is a club to do to avoid this negative cycle? The first step is the simplest.

Determine whether the club’s governing documents, including its membership agreements, provide a legal pathway, with or without amendment, to (i) reduce or eliminate the capital drain of repaying former members; or (ii) otherwise charge to fund or capital expenditures.

The next step is to formulate a strategic plan to optimize the club’s capital program and engage members in the process. Consider the amenities which may be most attractive to your club’s demographic, as well as prospective members.

Examples such as resort-style pools, pickleball, medical spa and youth-oriented facilities are trending high in popularity and are appealing to a large segment of the population. Then implement the capital program that is best suited to retain and attract new members in your market.

While not widely publicized, several clubs are already enjoying the benefits associated with restructuring their capital programs and paying less to former members. Many have eliminated the refundability of membership payments entirely, some have adjusted their repayment protocols, some have purchased former members’ positions and others have successfully instituted voluntary relinquishment programs with various incentives.

Regardless of the type of capital restructuring, the result is the same. Financially healthy clubs are retaining the vitally important capital flowing from the issuance of new memberships and making capital investments in their facilities.

The prognosis is clear. Capital funding is the lifeblood and capital investment is the prescription for keeping your club alive and well. BR

ON THE FRONTLINES

Culture and Hospitality

The Member Experience - Part I

M. Kent Johnson, CCM is general manager/COO at the Baltimore Country Club, Baltimore, MD. He can be reached at (410) 554-8002 or via email: kjohnson@bcc1898.com

I have worked in the hospitality industry for over 30 years, doing everything from washing dishes to valeting vehicles.

I’ve spent years learning everything I possibly can from my different roles within the hospitality industry and now having the privilege of running one of the top clubs in the country.

Over the course of my career I have discovered one complete, vital and undeniable truth – a strong culture is integral to the success and longevity of any club. Workplace culture consists of two parts – the internal and the external.

The external is what our members see and feel and conversely the internal is what our teams see and feel. Both of these factors are deeply connected, but for the purposes of this writing, I’m going to focus on the member side of the cultural experience, the external.

At Baltimore Country Club we have adopted an actionable statement affectionately known as our simple truth— “Great People Make Favorite Places.” The meaning behind this statement is simple.

Baltimore Country Club has many attractive amenities: Dining, championship golf, racquets, bowling, fitness facilities and a pool complex to name a few. However, the truth is these things aren’t what define us – our people do. The nature of being a private club provides us with the unique opportunity to get to know our members on a personal level; understanding their likes and dislikes and what makes them feel special.

1. Do we practice what we tell ourselves, our teams, and our members?

2. Do we genuinely believe in the culture we are appropriating with our teams and our members?

3. Do we live and inspire the very culture we are seeking to build through our own personal motivations, beliefs, and actions?

Your culture must be woven into the fabric of your club and should be easily recognizable at every level of your organization. Culture must be evident throughout the member and team experience and everyone should feel connected to it.

It is important to remember – culture isn’t static, it’s dynamic, and as the needs of your team and/or members change, so must your culture. Culture isn’t simply about benefits, the environment you provide, or making your members and team feel good. Culture is the atmosphere that you create and nurture for your members

What happens when culture is connected with people, tradition, heart, innovation and true hospitality is nothing short of inspiring. Once you are able to do this, you will have built a culture that is rewarding, fun and engaging, that you are proud of and others are inspired by.

When we are able to connect our actions with their experiences, we have great people making BCC their favorite place. This statement guides every decision we make at our club and serves as the foundation of our culture. This statement not only guides how we select our members and team, but also asserts the experience they can expect from our club.

Most of us claim to understand the importance of culture in our clubs, but are we actually providing the culture we think we are?

Culture is undeniably foundational.

To have a truly transformative impact, we must start by asking three questions and if you are unable to answer these questions affirmatively, I encourage you to continue reading:

and your team. As your culture’s leader and its strongest advocate, it is your responsibility to inspire others to your way of believing, creating and acting.

The power of listening is incredible. Listen to your members, listen to your team and as a result, you will recognize opportunity. When you are actually able to hear the message being communicated to you and act on it, that’s the good stuff.

The two most important tools at your disposal are your ability to listen and your ability to empower every member of your team to use the information they’ve collected to make an impact on someone’s life without fear of judgement or reprisal.

At BCC we refer to these acts of hospitality as Green Folder Stories. These stories go beyond our standard of excellence. These experiences are vastly different than the typical level of service our members have come to expect from their club because they are uniquely impactful, genuine and positively affect someone’s life beyond the club.

Allow me to provide two brief examples:

1. Like many clubs, we have a Christmas fund for our team. Recently Yeliza in our accounting office received a donation card with a note from a 98-year-old member attached. The note explained that though she loved the club and was an active member and participant in our 9-hole group for many years, her age now prevented her from making use of the club.

Yeliza organized a group that included members of our current 9-hole group, as well as members of our golf team. They pulled minutes from meetings where she had been involved in decisions and gathered stories from other members, but they didn’t stop there. They hand delivered lunch from our restaurant and surprised her by bringing the club to her. I am sure you can imagine the joy she felt by such a simple yet genuine action.

2. Shortly before the pool closed for the season, a mom was expressing to Haley, one of our food and beverage managers, how upset she was about her eldest daughter’s impending departure for her freshman year of college. Haley used the information she gathered from their conversation and put together a “mom survival kit.”

It included movies, microwave popcorn, and (of course) a couple bottles of wine, but more importantly memorabilia from her daughter’s new school. The gratitude from the mom that Haley thought enough of her to reach out in this way was exponential.

There are many examples like the two above – (as of this writing, 172 of them to be exact). For some this may be nothing new, but for others, I hope it serves as inspiration. As leaders we should take ownership and be accountable to ourselves and others. We should engage, be present, passionate and empathetic. We should be genuine, extraordinary and empower others to be impactful with their actions. We should require of ourselves what we are asking of our teams and be advocates for the culture we say we are providing. What happens when culture is connected with people, tradition, heart, innovation and true hospitality is nothing short of inspiring. Once you are able to do this, you will have built a culture that is rewarding, fun and engaging, that you are proud of and others are inspired by. I hope along your journey you will realize as I have that jobs don’t come more satisfying than this. BR

COMMITTEE

The Symptomatic Treatment of Food and Beverage A Recipe for Disaster

Americans are using their kitchens less and eating out more, reportedly two to three times per week.

Restaurant spending continues to rise, with sales at eating and drinking establishments up over four percent, surpassing grocery sales in 2019, according to data from the U.S. Census Bureau.

At the same time, private club members are rating the importance of their food and beverage experiences higher than any other amenity, including golf.

It’s an exciting time for food and beverage operations inside of private clubs. The only problem is: There is a long list of member dining rooms, pool-side restaurants, and on-course snack shacks that don’t live up to the appetites of their respective memberships.

The same members prioritizing the importance of food and beverage are reporting average satisfaction of food and beverage quality and service, creating a gap between the experience delivered and members’ expectations.

Outside of club gates, members are enjoying unique dining experiences that offer everything from global flavors to convenience to sustainable offerings. And they are comparing these noteworthy experiences to the ones they are having inside of their own clubs.

Private club members are asking for restaurant-quality service, food, drink and experience. But especially in an operation that has struggled to meet the growing demands of membership, it’s challenging to deliver this high-level experience when we, as foodservice leaders, are treating symptoms rather than the root cause.

Members relate that they want healthier options. The chef responds with a lighter fare menu. Members say service is too slow. Leadership responds with bread service to fill the space before the main course is served. Staff complains they don’t have enough training; management implements a training program.

While these may seem like prudent solutions, they are just prescriptions for the symptoms of an untreated disease. And the prognosis: an uninspiring member experience and mediocre member satisfaction.

The etiology, actually, may be a number of things, which often cannot be determined with a microscope or magnifying glass. It requires a panoramic picture of the entire operation, a wide lens that captures the full landscape.

It requires a hard look at what your club is trying to be and why. It all starts here; the most promising element of success in a food and beverage operation is – clarity of strategy.

Then, everything else follows. From clarity of concept, to definition of the customer journey, to defining staff roles, driving accountability, aligning compensation and delivering a memorable experience… all with great food, beverage and service.

Instead of mitigating the signs for the short-term comfort and well-being of the membership, start treating the underlying cause of the symptoms.

As the private club industry takes on every restaurant in America, the journey starts with an overarching strategy for our food and beverage operations. It starts with a plan to cure the disease. BR

ED DOYLE

Ed Doyle is president, RealFood, a division of Troon

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 with the planning, evaluation, selection and implementation of computer technology in all facets of their operations. Bill can be reached at bboothe@boothegroup.com.

Virtual Credit Cards

Time to Get the Horse Drinking

To my surprise, adoption of VCCs by clubs has continued to be very slow.

In the November/December 2016 edition of BoardRoom magazine, (Virtual Credit Cards Why Isn’t Every Club Using Them?), I explained how virtual credit cards (VCCs) work and presented the financial benefits of this well-established technology.

We estimate that fewer than 15 percent of private clubs are now using VCCs to pay a portion of their AP invoices. Why are so few clubs taking advantage of this beneficial technology? Here’s what we’re hearing from club financial executives:

1. “I’m not familiar with VCCs.” After all of the promotional activity by VCC providers in the past few years, it’s hard to imagine that club CFOs and controllers aren’t aware of how VCCs benefit clubs financially. But that’s the most frequent response we get when discussing this topic at industry conferences. Seems like there’s something more going on here that we need to understand. Let’s dig a little deeper into what we’ve been hearing.

2. “Not all of our vendors will participate.” Doesn’t matter! Enough will participate to make it worthwhile. The average participation rate in the private club industry is 30

percent of the “AP spend” – meaning 30 percent of the total amount paid out through AP. That might only be a handful of your vendors – but who cares. For a smaller club with just $3 million in AP that still equates to a $9,000 annual rebate – in return for doing virtually nothing. We see larger clubs receiving annual rebates of $20-30,000 – again without expending any significant effort.

3. “Some vendors will charge us a fee to pay them with a VCC.” Right. So, don’t use the VCC with them.

4. “We’re concerned that some vendors will raise their prices to us if we pay with a VCC.” We haven’t seen any evidence of this happening in the club industry. However, if it happens to you, see number three – don’t use VCC with them. Here’s my take on all of this. Financial executives are tasked with managing a complex array of financial systems that operate in a very orderly fashion. Procedures are well established to assure accuracy and consistency in results. Any change to those procedures is likely to be resisted in an effort to maintain consistency. VCCs represent change. The old saying applies here: “You can lead a horse to water, but you can’t make it drink.” Time for managers and directors to get the horse drinking. BR

DEAN WOCHASKI

Dean Wochaski is president/agronomist with Golf Maintenance Solutions. He can be contacted at office (757) 222-0025 or cell (757) 685-5556 or at: www.golfmsolutions.com

Training Is a Day-to-Day Event

In my travels around the country and even into other countries I’m often asked the question. “How can we improve the golf course without spending any more money?” I usually hesitate for a moment because the easy answer is more money and resources.

Unfortunately, I know that is not the case because I work with clubs that have healthy budgets, but still lack detail and crispness throughout their properties. Don’t get me wrong, adding resources can absolutely make it happen and help elevate the golf experience.

I do believe there is another sure way to improve your golf course or more important the detail and “little things” that make a difference in your golf course versus your competition. The key is to have a professional and well-organized training program that all employees go through when hired and which continues throughout their employment.

Training does not stop when you learn all the tasks on the golf course. Training is a day to day event that is important in achieving the quality and detail we look for with any golf course.

Let’s take any sport and you will find if you are not training, practicing, learning or mastering your skills it will not be long before you realize you are not on top of your game. I remember seeing posters and reading books we train for excellence. Why is it any different in golf maintenance where you have multiple tasks and varying equipment and you absolutely must produce an exceptional result.

When you hire a new employee, you want to make this person get excited about coming to work and working for the golf course maintenance department. Get them to feel they have the most important position in the club and that when they leave each day they can’t wait to come back in the morning.

This is how you will create the culture that every person on the golf course is contributing towards making this golf course an exceptional place to play for the member and guest.

We know that recruitment and hiring are important steps in getting the best people on your team. This is where you need to make a huge impression on how important their position is to the success at your golf course. Here are some of the key steps to developing an employee from the first day of employment.

ONBOARDING

This starts with a well-planned onboarding program that will create excitement with your employees when sharing the club culture, benefits, meeting the GM, touring the course, touring the maintenance building, providing a locker and safety equipment, uniforms and spending time with each employee on the first day. Invest the time to show them you are excited they are a part of the team!

TRAINING

It’s impossible to hire all “superstars” when building your core employees or summer staff. Just as in professional sports we deal with a “salary cap.” The key is to invest the time in training your employees no matter what the task or job is available on the golf course.

It’s important to have a job description/ expectation for each task and also for the operation and safety of the equipment being used for each task. Next, it needs to be clearly defined how to achieve the performance level for each task, along with best practices that will help make the job easier.

This should always include videos that can help show what you are saying and quizzes to make sure the employee truly understands what you have talked about through the training program. Finally, training does not stop at the end of that day as the follow-up should be on-going to make sure the quality of the task is achieved at the highest level.

The increasing demands on every superintendent to maintain outstanding golf course conditions while balancing employee shortages, attrition and quality people is a stiff challenge.

Developing a training program that ensures a level of trust that results in a high degree of accountability, performance and results in employee satisfaction is an excellent way to improve course detail and quality. In the process this may result in producing the employee culture that we desire but rarely achieve. BR

DAVE DOHERTY

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

Web page: www.istrc.com

Time to Do Your Homework

Knowledge without understanding, interpretation and implementation is worthless!

Knowledge: Webster’s Dictionary say: All that has been perceived or grasped by the mind.

What a wonderful word that we use in conjunction with science, what we expect our teachers and elders to have, and what we as professionals in the turf industry must have in order to give our employers a fair return and to provide leadership to those for whom we are responsible.

Understanding: Webster’s says: To know thoroughly; grasp or perceive clearly and fully the nature, character, functioning, etc. of.

Interpretation: Webster’s says: To explain the meaning of, make understandable.

Implementation: Webster’s: To carry into effect; fulfill, accomplish.

Years ago I performed an ISTRC physical analysis including particle size on the greens of a golf course located in the Midwest that had rebuilt their greens only a year and a half (one and half playing seasons) before.

The greens were struggling and the answer was in the physicals. However, before my conversation with the superintendent could focus on what was causing the greens to fail the superintendent took offense with the particle size analysis report, which showed that there was a piece [one] of gravel in the mix.

This piece of knowledge ended the conversation. The superintendent had read a lot and thought he knew everything there was to know about the particle size analysis of the sand. This piece of knowledge caused the superintendent to come to the conclusion that the ISTRC report was not accurate and could not be used.

Knowledge: Not enough

Interpretation: Incorrect

Understanding: Very Little

Implementation: Not A Chance

GREEN COMMITTEE

This former superintendent knew all of the answers to everything and could quote them to you and enjoyed doing so. Howeve, he didn’t have a clue when it came to common sense understanding and implementation.

The new superintendent laughed when I told him this story and after a brief discussion the corrective measures were implemented, and the stressed turf became a moot point. Twenty years later these greens are still performing very well.

Recently I had a conversation with the general manager of a very prestigious Midwest course who had just finished building an additional 18 holes and was looking for a new superintendent. He asked me for recommendations and proceeded to explain to me that he just wanted a middle of the road superintendent, as they had used a well-known architect and an established construction company so there would be no problems. Wow, is he in for a surprise!

Knowledge: Very little

Knowledge based on science and experience is not that hard to obtain, if we will just take the time and do our homework and stress the need for proper knowledge and to never stop listening and learning. BR

TRIBAL MAGIC

Doing The Tombstone

Thinking Tombstone

GREGG PATTERSON

Gregg Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com

Next time you’re interviewing someone for a job and are looking for a conversational “opener”, ask the “wanna-behired” what they’d write on their tombstone for others to read when they’re dead and gone to The Great Beyond.

Savor their reaction. They’ll look at you in bewilderment, befuddled, panic in their eyes, clueless as to why you’re asking a bizarre question like THAT!!!

At which point you can guide them through a bit of “Tombstoning” history.

People who work in graveyards dig lots of graves and when they’re not digging graves, they’re mowing lawns, raking leaves and trimming grass. They have lots of alone time, lots of think time, lots of imagine time and lots of “look time” to read what people wrote on their tombstones. “A great father.” “A loving son.” “A forgiving wife.” Capturing their “essence” for posterity.

Gravediggers know that tombstones never mention money or cars, or fame or colleges attended or degrees that were earned or any of the “resume stuff” that people seem to value when they meet at reunions or interview for jobs. They understand that tombstone virtues are all about the principles the departed used for deciding what to do, who to do it with and where to do it … and how to judge the journeying they did.

And in those empty hours and aimless wanderings gravediggers get to pondering whether the character who’s been eulogized actually lived a life consistent with their tombstone message.

NEEDING THE TOMBSTONE

So after delivering your long-winded intro, you tell the “wanna-be-hired” that “tombstoning” tells others lots about who you are, who you want to be and where all of that “who-ing” should get done.

You tell the “wanna-be” that a tombstone “done right” requires a couple of pithily worded end-of-the-journey statements that the Tombstone-er could mail to their friends, paste in their notebook, hang on the wall, prop up on the desk and use as a screensaver to remind them what’s needed to create a life worth living.

You tell the “wanna-be” that the tombstone they’re creating will scream “this is me” when applying for a job,

meeting a blind date or explaining why they did what they did to the grandkids.

You tell the “wanna-be” that you’re looking for alignment between their tombstone, your tombstone and the club’s tombstone. Tell them that “three-way tombstone alignment” is the ideal foundation for a successful professional relationship.

So you tell the “wanna-be” that you, as their employment mentor, will help them create their very own personalized tombstone that’ll help them decide if the club is right for them and help the club decide if they are right for your club, your team and your leadership style.

And at that point, the Tombstoning can begin.

Carving The Interview Tombstone

You take out a piece of blank white paper. Draw a tombstone. Divide the tombstone into three sections – two on the bottom and one on the top. Tell the “wanna-be” you’ll be walking them through the Tombstoning journey by asking a few questions and then filling in their “interview tombstone.”

You tell them that the top of every tombstone has their Life Why statement, the one big principle guiding their journey through the here-and-now. So you ask, in one pithy sentence, “what’s your purpose during The Great Journey?” Family? Relationships? Doing good for others? Then start the questioning once the statement’s been made. Fill in their Life Why. Then give them your Why. And the club’s.

You explain that beneath their Life Why Statement, on the left side of the stone, you’ll be writing their Professional Why, a single sentence that’ll summarize why they’re doing the work they’re doing. So you ask, In one pithy sentence, “Why are you in the business you’re in?” Money for the family? Meeting interesting people? Making people feel good? Then start the questioning that dives deep into their Professional Why. Fill in their tombstone. Then give ‘em your Professional Why. And the club’s.

Tell them a photo’s needed for placement beneath their Professional Why that captures the essence of that professional journey. So you ask, “What photo would you could show the world that says ‘this is me’ as a professional?” Behind their desk? Serving drinks to members? Laughing with kids? Then start the questioning. Fill in the tombstone. Then show ‘em yours. And the club’s.

Beneath the Life Why on the right side of the stone you’ll be writing their Personal Why that summarizes the road they’ll follow on their personal when I’m not working journey. So you ask, “What’s the pithy sentence you’d use to describe The Why of your personal life journey?” Family? Friends? Sports? Then start the questioning. Fill in the tombstone. Then give them your personal Why. And the club’s. And beneath their Personal Why statement they’ll place the photo that captures the essence of their personal journey. So you ask, “What’s the one photo you’d show the world that says, ‘this is me’ in my personal life?” The family on vacation? In leathers on their Harley? Surrounded by dogs? Then start the questioning. Fill in the tombstone. Then give ‘em your photo. And the club’s.

After all their tombstoning’s been done, ask them the big questions. Is their tombstone aligned with yours as manager? With the clubs? Can we work together, live together, journey toward the goal, together, aligned and motivated? And to finish off the discussion, give them their interview tombstone, your tombstone and the club’s one-page tombstone. And then do the compare and contrast.

MENTORING THE TOMBSTONE

After the interview’s finished, do a bit of counseling/mentoring with the interviewee. Tell them to ponder their tombstone. Tell them to figure out if what’s been written is really

them. Tell them to take it home and ponder what’s written. Tell them to revise their tombstone as needed to create alignment between what’s been written and who they want to be. And once they’re finalized their tombstone, tell them to refer to it often, ponder what’s written and ask if their tombstone is the right roadmap to follow for the next 50 years?

LIVE ALIGNMENT

Tombstones are a big deal because eulogy statements tell you and others lots about who you are, what you’re doing and where you want to do it. Remind yourself that Tombstoning is a great exercise for you as a manager / supervisor / spouse / parent / wanna-be-hired. Tombstoning makes you ask the big questions that’ll guide your “doing” during your decades long journey through life.

Tombstoning is a great interview technique. It stimulates thought and energizes conversation.

Hire people whose tombstone is in alignment with yours as leader. Hire people whose tombstone is in alignment with your club. Pursue a mate whose tombstone is in alignment with yours as a spouse.Start pondering your tombstone. Start asking yourself what pithy quotes and simple first principles would give coherence and focus to your personal and professional doings.

Create your tombstone, hang it on the wall, refer to it often, and enjoy the journey!!! BR

IDEAS

Club Members Interested in Sustainability Practices and Food Sourcing

Glacier 51. That’s the provenance of a recent shipment of Chilean seabass served up at Champions Run in Omaha, Nebraska. Club members can scan a QR code on the dining menu to find out the exact geolocation of the vessel that caught the fresh catch on their plate.

They can learn when it was caught, the name of the boat that caught it, the boat captain’s name and the journey the seabass took to reach the club.

Champions Run’s Executive Chef John Benton and his culinary team are tapping into a growing interest in food sustainability and sourcing. “Our members live in one of the greatest food cities in the country, in Omaha, NE. When in season, we source local products from all over Nebraska,” said Benton.

He noticed that members are becoming increasingly attentive to the details of where and how their food is sourced. They want to know whether it’s commercially grown or sustainably farmed, raised or caught. With no food and beverage minimum, Champions Run needs to stay competitive with both restaurants and private clubs in the area.

Champions Run updates the QR code on the menu with each new seafood order, so that members are always kept informed about the dining choices they are making. Members at Champions Run can learn, for example, that the most recent shipment of Glacier 51 Chilean seabass is certified sustainable by the Marine Stewardship Council (MSC).

The seabass on their plate is also recommended by the Monterey Bay Aquarium’s Seafood Watch Program here in the U.S., an initiative that makes science-based recommendations that help consumers and businesses make ocean-friendly seafood choices.

With a quick scan of their smartphone, they might also learn that their seabass was caught by Austral Fisheries, the first, and currently the only commercial fishing company in the world to be certified as carbon neutral. The company plants native trees to offset all of their carbon emissions, a fact that is independently verified and certified by the Australian Government.

The Glacier 51 Chilean seabass was the first fresh catch traced by the club, but Chef Benton also serves Ora King Salmon from New Zealand. Each fish is gill tagged with a unique identification number, and using that ID, members can gain access to its origin, and to traceability information.

For other seafood features, Benton shares all the necessary details with service staff at their daily pre-shift meeting. They learn where the fish was caught, by whom, and how long it has been out of water.

“Our members are smart,” said Benton. “We felt that having the opportunity to provide this information to our members creates excitement and enthusiasm for our F&B program and is just another reason for them to love their club.” BR

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

The Country Club at DC Ranch Debuts New Nine-Hole Course

The Country Club at DC Ranch in Scottsdale, Arizona recently introduced several new features to make the game of golf fast and fun.

With the debut of The Horseshoe, the club’s new nine-hole course this winter, they’re moving to make golf more approachable for beginners and more accessible to avid golfers with a busy schedule.

The Horseshoe’s nine holes, designed by Greey/Pickett, range in length from 54 to 104 yards, making it ideal for beginners to learn and enjoy the game, as well as for family golf, lessons, juniors, seniors and for a quick wine and dine with colleagues or clients.

Created using the same TifEagle Bermudagrass found on the putting greens of the club’s main course, The Horseshoe is perfect for a relaxing, fun, quick round of golf. Sand bunkers front these nine greens for a similar look and feel as the club’s traditional 18-hole course, designed in a classic style by Tom Lehman and John Fought.

DC Ranch also introduced new gold tees on its traditional course. The new gold tee boxes play to a total yardage of 3,969, a full 1,100 yards shorter than the course’s existing red tees and approximately 3,000 yards shorter than play from the course’s black tees.

The introduction of the new tee boxes provides golfers the opportunity to play and get on the green in regulation more often. The Gold Tee

is rated at 60.5 with a slope of 98 for men and is rated at 61.6 and a slope of 100 for the women.

Finally, DC Ranch added an 8,500 square foot practice putting green, an increased practice tee space, and an expanded short game area. The enhanced practice area has two chipping greens and greenside bunkers, giving members plenty of space to improve their game.

All of these enhancements are helping DC Ranch make golf approachable for all levels of play while inviting beginner members to engage more fully in the game of golf. BR

IDEAS

Live Chat Feature Generates $136,000 In Added Revenue

In the September/October issue BoardRoom magazine 2019, we reported how our current culture’s need for immediacy is shaping the way we communicate with existing and potential new members.

Gabriel Aluisy noted research that shows that faster response times increase the probability your prospect will stay in your sales pipeline. Membership Director Ricky Potts knows this all too well. He’s delivering incredible value to The Fountaingrove Club in Santa Rosa, California using a relatively simple piece of technology: Live Chat. Since introducing the new communication channel to the club’s website, the chat functionality has increased the club’s revenue by more than $136,000 as of this writing.

We’ve all grown accustomed to the instant gratification of digital communication. According to a 2019 Business Insider article, 59 percent of consumers would rather go through additional channels to contact customer service than have to use their voice to communicate.

Further, at least 49 percent of all consumers contact customer service using automated channels, and that number goes up to 66 percent for Millennials. That data is from a two-year old study, so one can only imagine these numbers have increased over time.

Research like this was the genesis of the idea for Potts, who is technically a Millennial himself. “It all started last year in sunny Naples, Florida. I was the Director of Marketing and Communications at Tiburón Golf Club at The Ritz-Carlton Golf Resort, Naples. As someone that loves to communicate with brands via Live Chat, I decided to experiment with it there.”

Potts’ first attempt proved successful, producing over $40,000 in added revenue in the first two months of usage. “When I relocated to Santa Rosa, we implemented it here, and while we don’t respond to as many messages [about two per day], it has produced over $136,000 in guaranteed revenue,” said Potts.

“Since we are a private club, 100 percent of the revenue is from referring new members, initiation fees and guaranteed dues. We lost our clubhouse in the 2017 Tubbs fire, so currently we do not do weddings or banquets. That number does not include discretionary spending,” said Potts.

The customizable service he chose is called Drift (visit drift.com). Potts opted for the no fee option, though there is a paid version. The Live Chat messages can be directed to his desktop or to his smartphone as a push notification. Drift recently released a desktop app, as well.

“It does take a lot of time, patience and accessibility,” said Potts, “For example, if someone sends a message at 8:30 p.m., it comes to my phone. I will respond 100 percent of the time. If I am awake, I am responding to messages.”

Potts’ average response time is a blisteringly quick four seconds. The only thing slowing him down is unlocking his phone before answering queries. He invites anyone to test his speed by visiting thefountaingroveclub.com.

The system recognizes repeat users, so Potts is able to call prospects by name on their second visit to the Live Chat feature, adding a personal connection to the interaction. “There is a lot of power in that,” he noted.

In addition to booking club tours, Potts has also helped members book tee times, make dining reservations, register for events and he routinely answers questions about membership. “If I don’t respond right away, regardless of what time it is, the person asking the question loses trust in our ability to communicate properly in a timely manner.”

Best of all, the Live Chat sessions are 100 percent trackable, as is the revenue they generate. The club’s board can see the results of his time and energy spent. Drift provides information based on the incoming user’s IP address, making clubs able to collect names and email addresses for new points of contact, building out their CRM along the way, while learning about potential new members. BR

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

A Breakfast at Tiffany’s Inspired Brunch for Mom

A classic 1960s film inspired the theme of a recent mother-daughter event at Myers Park Country Club (MPCC) in Charlotte, North Carolina recently. In search of a fun and exciting idea that both moms and daughters would enjoy, the team at MPCC landed upon a Breakfast at Tiffany’s Tea Party.

Youth Activities Director Erin Schlegel and Manager-in-Training Jennifer Gibson coordinated with local party and decorating companies to source Tiffany blue linens and an oversized “Myers Park & CO” sign for the entryway, festooned with piping and draping. Additional decorations included small Tiffany blue gift boxes and bags, tiaras, and balloons purchased online.

Guests were greeted with pearl necklaces to wear throughout the event. Families gathered at community tables to enjoy a menu featuring a variety of hot tea, cold beverages, mimosas and sparkling cider.

About 75 mothers and daughters attended. “We had an overwhelmingly positive response from the membership for this event. It provided a fun space for mothers and daughters to dress up, get together, and spend time with friends old and new, “ said Schlegel.

Breakfast included an array of pastries and scones with jams and butters. A variety of tea sandwiches were created to appeal to moms, including smoked salmon, cream cheese, and cucumber; turkey, brie, and cranberry; and shaved roast beef with whole grain mustard. Pizza pinwheels, PB & J, and pimento cheese were on the menu for the younger members. An array of Tiffany blue desserts made by the club’s pastry team rounded out brunch.

Breakfast at Tiffany’s was screened in the background to add a nostalgic touch to the brunch, which was followed by a painting session with a local pottery company that supplied the goods and guidance for members to decorate ceramic gift boxes.

The event was well-received, and with Mother’s Day just around the corner, it may be a great fit for other clubs looking for a way to honor the moms. “They appreciated a diverse menu that appealed to both child and adult palates, enjoyed the beautiful decorations, and were excited to paint the present box that they can now use to hold small trinkets at home,” said Schlegel.

Schlegel and Gibson marketed the event to members in the club’s bimonthly publication, on the MPCC website, and via email blasts. Club staffer and photographer Marcos Aspiazu captured the beauty of the event and local vendors Party Reflections, Extravaganza and Dish It Out supplied the Tiffany blue creative elements. BR

LEGISLATIVE COMMITTEE

MELISSA LOW

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.

Legislative and Regulatory Update

It has been an impactful fall and winter for federal rules and regulations affecting the club industry.

Here’s the latest information the Waters of the United States rule, H-2B visas, and changes to the regular rate calculations by the Department of Labor.

Navigable Waters Protection Rule Released: On January 23, the Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps) issued the Navigable Waters Protection Rule, permanently replacing the repealed 2015 Waters of the US (WOTUS) rule, which dramatically expanded federal jurisdiction over waters and wet areas in the U.S., including most water bodies on golf courses.

H-2B Visas: Recruitment Changes and Additional

FY2020 Visas: On November 15, the Department of Homeland Security (DHS) and the Department of Labor (DOL) jointly issued final regulations to modernize recruitment requirements for H-2B visa workers, effective December 16, 2019.

The final rules rescind the regulations requiring an employer to advertise its job opportunity in a print newspaper of general circulation in the area of intended employment and expands and enhances DOL’s electronic job registry to disseminate available job opportunities to the widest audience possible.

At the end of December, Congress passed spending legislation for Fiscal Year 2020. The measure includes the same language as the previous three years of appropriation measures that gives the DHS the discretion to release additional H-2B visas and other regulatory provisions that have been in force for the last few years. This action could make as many as 60,000 additional visas available for FY2020.

The new rule does not change who oversees permanent waterways, such as lakes, rivers, streams and other bodies that always or usually contain water. Instead, it provides clears lines indicating that usually dry areas – like ditches – should no longer be considered federal waters.

The rule identifies four clear categories of waters that are federally regulated:

1. Traditional navigable waters including territorial seas,

2. Perennial and intermittent tributaries,

3. Certain lakes, ponds, and impoundments, and

4. Wetlands that are adjacent to jurisdictional waters.

This final action also details what waters are not subject to federal control, including features that only contain water in direct response to rainfall; groundwater; many ditches, including most farm and roadside ditches; prior converted cropland; farm and stock watering ponds, and waste treatment systems.

Further, the 2020 rule provides clarity about what waters fall under federal versus state jurisdiction, making water management more efficient and effective. In September 2019, the 2015 WOTUS regulation was officially repealed in step one of the two step repeal and replace process.

In a move that differs from the proposed rule, the DOL will advertise the employer’s job opportunity on the website, seasonaljobs.dol.gov, instead of requiring the employer to post its own electronic advertisement. This mobile-friendly website is an expanded version of the DOL’s electronic job registry and will leverage the latest technologies to automate the electronic advertising of H-2B job opportunities.

Jobs will be automatically posted by the DOL and U.S. workers interested in a particular job opportunity can apply by directly contacting the employer, using the contact information that the employer provided on its job order and H-2B application.

The bill also includes directions to DHS to efficiently release the additional visas authorized by the bill and the

previous provisions preventing the DOL from enforcing the corresponding employment and three-fourths guarantee provisions of the 2015 regulations and allowing for a 10-month season and the use of private wage surveys.

Further, the measure directs the Departments of Homeland Security, Labor, and State to provide a report to Congress within 120 days on ways to improve H-2A and H-2B processing including “processing efficiencies; combatting human trafficking; protecting worker rights; and reducing employer burden, to include the disadvantages imposed on such employers due to the current semiannual distribution of H-2B visas on October 1 and April 1 of each fiscal year.”

As of November 7, 2019, the first half of the FY allocation had been depleted. Demand for the second half of the FY is strong, with reports of more than 5,600 applications being filed requesting more than 96,000 workers.

DOL Updates Regular Rate Calculation: On December 12, 2019, the Department of Labor (DOL) announced its most significant update in 50 years to how employers calculate the regular rate of pay under the Fair Labor Standards Act (FLSA).

The FLSA mandates overtime pay of a minimum of 1.5 times the regular rate for hours worked in excess of 40 hours per work week. Regular rate requirements define what forms of payment employers must include and exclude in the calculation. With the evolution of employee benefits and remuneration over the last 50 years, it is a necessary update to provide clarity to employers. Under this final rule, the DOL clarifies whether certain kinds of benefits and other miscellaneous payments must be included in the calculation of the regular rate. The final rule also includes additional clarification about other forms of compensation, including payment for meal periods and call back pay. The changes became effective January 15, 2020. BR

Paradigm Shift

It’s Coming for Your

Todd Dufek is the president of the Locker Room Managers Association (named the “2009 Association of the Year” by Board Room) with about 160 member clubs nationwide (www.yourlrma.com). He created the ULRSTS, founded the ILRM and is the locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona. Todd can be reached at yourlrma1999@gmail.com or (602) 466-4189.

Locker Rooms!

There was a time when the locker room department was considered to be “Planet Locker Room.” Why? Because it was as if it existed on a separate orbit from the rest of a country club.

Not anymore!

There’s been a slow but steady shift in the way locker rooms are perceived. A few decades ago, metal spiked golf shoes disappeared from golf and country clubs, to be replaced by spikeless golf footwear and shoes with plastic cleats.

That was the start of an epic battle – over what happens when members arrive at their clubs – that exists to this day. The conflict has been between the members’ need to go straight to the course to play and the club’s desire to have them head directly to the locker rooms to take advantage of the customer service and amenities.

Unfortunately, it’s a battle that most clubs have been losing, but the tide is beginning to turn. Articles in industry periodicals in the last several years have indicated that clubs, including management and club members themselves, are transforming their locker rooms into spaces that better meet their needs.

In some cases, this means a complete overhaul, with lockers being added, upgraded or moved and spaces being opened up for darts and amenities such as video game and card rooms.

As Kyle Draper, general manager of The Country Club at DC Ranch put it, “Among the many improvements in our club in the last few years, including an $8.5 million-dollar expansion, has been a much-needed renovation of the

women’s locker room. The men’s is next. Upgrades that have not only been recognized by management but have been asked for by our members.”

That clubs are increasingly taking advantage of the knowledge and experience of locker room consultants and locker room managers is another indicator of this shift. And during on-site visits, they suggest ways of improving this space, including staff training. As Bruce Barilla, one such consultant recently told me, “My on-site locker room consulting business has increased this year with seven clubs in the works. The main concerns are customer service, updated amenities, a new look and functionality. Continuing education is important, too.”

In fact, when it comes to continuing education, it’s important to note that there is now a 6-month training program – the Ultimate Locker Room Staff Training System (ULRSTS) and an Institute of Locker Room Management (ILRM). Both are readily available to locker room staffers. All they need is a computer.

Yes, a paradigm shift is here! General managers as well as club members now realize the importance of using every space in their clubs to improve the member and guest experience and that now includes their locker rooms.

The result being that members will enjoy each visit to their club even more, be more likely to be retained as same, along with recommending to friends that they become a part of this unique community. BR

years. But they aren’t going out less – just differently. Two-thirds are now going to daytime, weekend, family-friendly functions to build experiential memories for and with their children. And when they do want a break, 70 percent want to still have memorable experiences “to challenge themselves and escape everyday routines.”

The key to both trends is embracing the belief in the concept of memorable experience. Or as some of my family members would say, the experience must be Instagramable. Providing that memorable event or experience is the challenge that club managers, membership directors and

cial view – which is the definition of a CFO.”

Torroll added, “A mentor of mine once likened the controller to a news reporter operating with journalistic objectivity. The CFO takes it from there to focus on driving the operational decisions that will ultimately shape the news story reported tomorrow. I believe I’ve added value to my organizations, as a partner to my fellow leaders, by adopting this philosophy in building my teams ever since.”

The value and strategic partnership that a CFO brings to a club should be compensated for accordingly. The 75th percentile total compensation for a head of finance,

marketers must wrestle. And as you are thinking about how you can raise the experience quotient for your members, look outside the club industry to give you some fresh ideas that can be adapted for your club.

It has been said that the only businesses that will exist in the future are those that know how to take advantage that the experience age can provide. Tomorrow’s successful club managers will maximize opportunities, including rethinking how to use space and innovative ways to engage members. I know you will be among them.

Your Bottom Line will thank you! BR

according to Club Benchmarking’s 2019 data, is $156,448 and the 90th percentile is $194,631. As a percent of operating revenue that translates to 1.5-1.8 percent.

It is time to evaluate your head of finance and their compensation package. Is your CFO a strategic partner to the general manager and board of directors? Are they a courageous thought partner to the general manager and department heads? Are they bringing value to the club’s bottom line as well as strategizing for the future?

If the answer is “yes” to all of these questions, it may be time to re-evaluate your CFO’s worth to the club’s current operations and future growth and stability and pay them accordingly. BR

alyst for BoardRoom’s Distinguished Club program.

“In fact, if the club is struggling with membership it is probably because the board is somewhat dysfunctional. Also the club’s revenues are struggling and the club’s expenses are out of line with the revenues the club is producing. Many clubs tolerate a dysfunctional board but the member experience suffers and if it goes on too long the club will fail completely,” he added.

“Lack of communication seems to play the largest role in creating dysfunction. Internal communication between board members is crucial and poor communication will lead to dysfunction,” expressed Rhett Evans, CEO of the Golf /Course Superintendents Association of America.

“If boards are myopic in their approach (concerned more about operational items than strategic focus), they will have little long-term success. Boards must have a sense of shared responsibility that makes the best interest of the facility the top priority.”

What are the ramifications of this?

“When poor communication and lack of a shared vision cause dysfunction on the board, the management team will not receive clear direction. This puts the team members in a difficult position as they are asked to choose sides or align with particular points of view,” explained Evans. “In these scenarios, projects take longer to be completed and often go over budget. This creates frustration for team members and can cause good employees to leave.

“Having a dysfunctional board can lead to strained relationships with all members of the management team. Trust issues develop when management team members find themselves torn between board members who lack a unified vision and direction,” Evans added.

“High functioning boards recognize that they and their management staff are all on the same team. They support each other and work together to solve problems. It’s not an us versus them mentality,” he said.

Steve Mona, director of governance & leadership for Club Benchmarking prefers to use the term “’not properly trained’ to ‘dysfunctional’ when describing a private club board of directors.

“Board members want to do what’s best for the club, but, in many cases, lack the training necessary to function at a high level on a private club board, which is very different than virtually any other business board members have been engaged in during their careers,” explained Mona.

“I’ve developed a paper entitled ‘The Seven Characteristics of Highly Effective Boards’, which outlines the key areas in which board members should focus their time and energy while serving on a private club board. I believe all seven characteristics are important to the proper functioning of a board.

“One core issue, common to many clubs, is the lack of an understanding of the drivers of financial success over time in a club. Realization that the income statement is the vehicle for delivering services and amenities to the membership and not the financial driver is a critical perspective necessary to govern properly,” he emphasized.

“The financial driver over time is the capital ledger - capital income and investment and financial focus must start here. That misperception is at the root of far too many clubs embracing operational governance (viewing spending through the lens of efficiency with an emphasis on cutting or managing expenses without focus on the value proposition and market positioning) over strategic governance (financial focus on the capital ledger and strategic focus on the value proposition and market positioning),” he added.

“A poorly functioning board can have a dramatic negative impact on the success of the very club it is trying to steward and improve. In most cases, the board gets lost in operational matters that are the purview of the club’s paid professional staff (such as cover counts and green speeds), and loses focus on strategic priorities, such as ensuring adequate capital for renovating aging assets of the club and planning for new offerings to its current and prospective members.

Mona maintains that “half of the clubs in the country are facing a decline in the real dollar measure of net worth (member’s equity) since 2006, which indicates a lack of understanding of the financial driver over time. We need to change that outcome, and it only changes with increased capital income from the members as owners of the club.”

Kent Stroman, CFRE, president of Stroman & Associates and author of The Accidental Intentional Board, sees three reasons, none of which is more important than the other, as reasons for dysfunction. The causes and solutions are interrelated.

1. Inadequate preparation – The reality is that very few board members have any formal preparation (education) for serving on a governing board. They are “doing their best” which, without proper training, isn’t all that good. People who are willing to donate their time deserve to be equipped with the resources they need to be successful.

2. Organizational culture – An old friend of mine often quoted a saying he heard from his German immigrant dad, “The tendency of everything is more so.” This applies directly to board service. Anything, left alone for any length of time, is most likely to disintegrate. Average boards, over time, will gradually become low performing boards. Low performing boards, over time, will gradually become dysfunctional. It takes inten-

tional measures, applied regularly over time, to elevate board performance above its present level. The good news is that, once a board achieves high performance status and applies intentional measures regularly over time, its tendency will be more so.

3. Natural group dynamics – Peer pressure seems to exert itself in the strongest fashion in boardrooms. The way individuals interact one-on-one is very different than how these same people function as a group around the board table. We believe that the group will rally together successfully when challenges / difficulties arise. I find this saying from the US Navy Seals to be so applicable, “Under pressure you don’t rise to the occasion, you sink to the level of your training. That’s why we train so hard.” Board members must be equipped with the principles, policies, and behaviors needed to perform well as a team . . . whether in times of routine governance, or in times of organizational crisis.

The result, Stroman adds, “is that dysfunctional clubs will experience:

• Disengagement by members who want to make a positive impact

• Disenchantment with the role, especially by new members

• Decreased levels of engagement by current and prospective board members, and

• In severe cases, legal action to correct the effects of the dysfunction.

“Yet, somehow against this dismal backdrop, clubs seem to survive. Our choice is whether we want to join the ranks of those clubs who barely survive year after year, measuring success in terms of avoiding closure for one more season. Or, will we choose to tackle these issues head-on and transform our governance process to one that deserves to be imitated by other clubs?” he queried.

Gordon Welch, president of the Association of Private Club Directors, says there are myriad reasons for a dysfunctional board, including the fact that many directors do not know the difference between a 501(c)7 and a 501 (c)3 board.

“While the differences are subtle, (who pays versus who benefits), there are also management and organizational differences. A 501(c) 7 board is hiring someone to be a ‘mayor or governor’ type corporate business person. The role of the GM/COO is very diverse and the boards role is limited in a 501(c) 7,” he explained.

“Boards that subscribe to the ‘good ‘ole boy, it will all work out thought process’ are dangerous in today’s world. Clubs must begin ‘planning’ for future boards and consider a competency-based board. This is where board members are recruited for a particular situation such as financial, administrative or legal background, or even a sports and recreation experience.

“There are also board members that, while they feel they are ‘giving back’ back to the club, they are also taking advantage (in many ways) of the club through a conflict of interest,” Welch added.

“Clubs that tolerate dysfunctional boards will find it more difficult to recruit board members and potentially club members. Few talented individuals will want to step up, if they feel they are ‘wasting their time’ in a dysfunctional board meeting. Board presidents need to be ‘introduced’ to the board presidency and how to run a board meeting when they become a vice president so they can watch and practice being in charge long before they arrive to the presidency,” he said.

“Dysfunctional boards will find they’re having long meetings and will be discussing trivial issues that are not their responsibility. They will find more turnover in the senior staff positions and will eventually try to run the club operations - which again, is not their role. Clubs cannot afford to have a dysfunctional board. If not corrected, it could lead to a death spiral,” Welch predicted.

Tom Wallace, principle with Kopplin Kuebler and Wallace, a leading private club executive search firm, succinctly wraps up the reasons and ramifications of a dysfunctional board.

Reasons:

• Lack of board training/orientation

• Lack of clear lines of responsibility

• Lack of trust between board members

• Lack of trust between the general membership and board

• Lack of trust between GM and board.

Ramifications:

• Financial waste and inefficiency

• Lack of forward progress for club

• Lack of clear strategy, direction for club.

And what does all this mean for a private club’s executive…the general manager and others? There’s some consensus.

“A good manager leaves and a poor manager stays. It makes it impossible to drive a culture of excellence with your staff when you don’t have a culture of excellence at the board level,” expressed Wallace.

“In many cases, unfortunately, the relationship between the board and GM suffers,” injected Club Benchmarking’s Mona. “The GM is faced with either obediently following the will of the board, who are, after all, the employers, or attempting to exert their influence on the content of

the board’s deliberations, which can create a potentially difficult situation.

“Part of the tension between GM and board is the lack of a common view of the financial model that drives success (i.e., most GMs understand the capital ledger is the key to financial success and that F&B is an amenity not a profit center, but very few boards understand this and thus needless tension rises regarding financial outcomes in F&B),” Mona added.

“A GM/COO that is working with a dysfunctional board will do one of three things: 1) they will become bored, dissatisfied and frustrated and leave, costing the club money and time for executive searches; 2) will take the challenge and try to educate the board - build a better board and improve the club or 3) they will take advantage of the dysfunctional board and do nothing,” commented APCD’s Welch.

“A dysfunctional board is very hard to manage. There is a lack of communication, support, trust and vision. Most GM/COOs will not tolerate this for too long,” he added.

“The general manager’s relationship with a dysfunctional board will vary based on the GM’s disposition toward the dysfunction,” author Stroman added.

“If the GM is complicit with (amenable to) the dysfunction, the relationship will be cozy . . . hastening the ultimate organizational implosion.

“If the GM is highly competent, the relationship with a dysfunctional board will be strained at first, then resolved if dysfunction is addressed. On the other hand, the relationship will become toxic if the dysfunctional behavior is ignored and allowed to continue,” he concluded.

Frank Gore is blunt in his assessment.

“The GM will ultimately be one of the first casualties of a dysfunctional board, many a great GM has been lost as a result.

“Boards need to take the mirror test and be brutally honest. Is the board focusing on the future, are they effective, is the club growing with highly satisfied members with a string demand for membership? If not, they are failing and need to adjust how they approach governance of the club,” Gore expressed.

Part II in our May/June BoardRoom will offer Solutions for a Dysfunctional Board. Stay tuned! At least, that’s the way I see it. BR

John G. Fornaro, publisher

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Bad Boards Zapping Managers

Replay

again?

“Bad Boards, Bad Boards” – an article written for BoardRoom magazine to the tune of Bad Cops by an associate many years ago is, unfortunately, still an issue today, and it’s worth reviewing again.

It talked about the way private club boards tack like a sailboat on a lake from left to right, from go to stop, and from manager “A” today to manager “Z” tomorrow.

The abrupt conversation or a professional execution of a manager who has not gained, or fallen from favor, usually starts with “We’ve decided that you’re not the right fit” or “We’ve decided to make a change”, and it’s usually with little to zero notice received

Zapping anyone, your manager, general manager, chief operating officer, or head busboy is a cowardly way to make a change. It’s unprofessional and an easy way to bring on more confusion, strife and loss of time and money.

The headhunters sure like it! Not to mention that it continues to feed the poor reputation clubs get for turning over their managers on average every 3.5 years. I wrote in an earlier article that that Harvard Business Review noted CEO tenure is usually around nine years.

So why are clubs so tough on top management? My answer: Poor communication. How do you improve it? Grow some courage and make some time to communicate properly. Here’s some ideas for that:

I worked at a club that looked at reviewing the manager activities as a monthly need-to-do. These happened as executive committee meetings with the top brass on the board over a breakfast a week before the board meeting. It was awesome because we aligned the work for the upcoming board meeting so that the larger meeting typically never went more than an hour-and-a-half.

These breakfast/executive sessions were always sober and focused meetings. Board meetings, especially evening ones, can be impacted by the fog of booze and busy days. Booze also give courage to cowards who probably shouldn’t be on a board but that’s a different story.

This early exec session offered an opportunity to make sure we were all on the same page. Communication, as I’ve mentioned, is crucial in advancing the business of the club, and clear, concise and on task meetings like this were invaluable.

They also offered a great opportunity for the board representatives to vent any frustrations or share any ideas they had directly to me as the manager. I felt like it was a monthly review and an

opportunity for me to show them my human side too, so they may not be so inclined to execute me summarily.

Known to be “coachable” I was always using my ears more than my lips. Sure, we still had the annual review process and one year was a bit of a surprise, but I’d chalk that up to a moment that was a bit stressful for everyone involved.

For the most part, we (the board, executive committee and me as the manager) remained on the same page. This allowed for clear communication with little to know or worry about on my part since I was doing the wants and needs of the club leadership.

Another easy way to stay on task is to just take for regular talks. Make it a consistent meeting with your manager, especially chairs/presidents. Keep it casual and stress-free. Share your thoughts and concerns but - stay out of the weeds.

Micromanagement is the number one reason why managers leave clubs so don’t fall into that pit. Keep focused on the long term and let the professionals be professionals. Governors govern, managers manage and members enjoy! If you can’t do that you should go micromanage somewhere else.

Zapping happens in every business – usually not for good reasons and usually somewhat unexpected. If you’ve got something to get off your chest as a board member, make it so.

If you see it happening and don’t agree, speak up. Don’t hide behind executive sessions without your manager. Don’t cry to fellow members about the old managers antiquated way of doing things or the way the new guy works.

Muster the courage to create a communicative and fair atmosphere. It will be best for the business, compassionate for families (yes, managers have children who depend on them too), and fair for the manager and honorable for all people involved. Communication is the key - Lead ON! BR

Boettcher

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Mark Bado, GM, Myers Park Country Club, in Charlotte, NC

Executive Chef John Benton, Champions Run in Omaha, NE

Nancy Berkley, green committee and marketing committee, Frenchman’s Creek Beach & Country Club, Palm Beach Gardens, FL

Alexis W.V. Bové, president, Waynesborough Country Club, Paoli, PA

Patrick Britt, president, Norwood Hills Country Club, St. Louis, MO

Kyle Draper, general manager, The Country Club at DC Ranch, Scottsdale, AZ

Todd Dufek, locker room manager, The Country Club at DC Ranch in Scottsdale, AZ

Andrew Fromm, Commodore, The San Francisco Yacht Club, Belvedere, CA

Joe Furko, GM, Waynesborough Country Club, Paoli, PA

Jennifer Gibson, manager-in-training, Myers Park Country Club, in Charlotte, NC

Barry Gordon, president, Addison Reserve Country Club, Delray Beach, FL

Stephen Hartman, GM, Norwood Hills Country Club, St. Louis, MO

Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club

Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI

Michael McCarthy, CEO/GM, Addison Reserve Country Club, Delray Beach, FL

Ricky Potts, membership director, The Fountaingrove Club in Santa Rosa, CA

David Robinson, GM, The San Francisco Yacht Club, Belvedere, CA

Erin Schlegel, youth activities director, Myers Park Country Club, in Charlotte, NC

Steve Berlin