BoardRoom magazine May/June 2017

Page 92

CHRIS BOETTCHER

CLUB SERVICE

Christopher Boettcher, proudly a CCM and CCe, is the GM/COO at Burlingame Country Club near San Francisco, CA and a regular contributor to BoardRoom magazine. He can be reached at chris@boettcher.com.

The Moon Shot at YOUR Club? Elon Musk has recently offered two really lucky people, who must be really wealthy, spots on the Space X flight around the moon in 2018. This has me thinking about the real moonshots in our club industry in the past decades. Stuff that worked and other things that, well, missed the moon. For those who don’t live as close to Silicon Valley as I do, the term “moonshot” is referring to any project that reaches greatness while risking failure. The original moonshot, NASA’s Apollo 11 mission that landed Neil Armstrong and Buzz Aldrin on the Sea of Tranquility, serves as both model and pacesetter. What club board or club manager wouldn’t want to contribute to one giant leap for mankind - or clubdom - especially if it grows or enhances the club in the process? I look back on many old-line clubs, and there have been many great leaps. But the questions have been - what’s next? Right? And is the moonshot based on good data or just a fad that sticks?

The good thing for clubs is that, recently, that fad has been turning around. I know many clubs now are raising their entry fees and reaching near full capacity. So how do board members know if they are taking another moonshot or basing the next capital expense on a fad that may not work? I’d suggest taking the advice of publishers like John Fornaro, president and CEO of BoardRoom magazine, or Dan Lamella from Club and Resorts Business who both believe in the chief operating officer concept and the need for boards to strategically plan ahead. Using the GM/COO to run the club business – and leaving the board to plan ahead – will use everyone’s abilities to the best outcome. Well-run clubs, with good governance practice, and forward thinking boards, remind me of Apple in the Silicon Valley. Sure, companies like Tesla, Google and Virgin Galactic are making the moonshot risk moves, but Apple is taking its sweet time.

Well-run clubs, with good governance practice, and forward thinking boards, remind me of Apple in the Silicon Valley. Sure, companies like Tesla, Google and Virgin Galactic are making the moonshot risk moves, but Apple is taking its sweet time. The introduction of family programs may not seem like a big deal but back in 1957 at an old-line club, it was a moonshot of sorts. So was fitness for some clubs. And that moonshot of fitness, based on a fad or trend, may not be good for the club and its unique culture. While reading pieces about the most influential fads of the modern world, I discovered unfortunately, smoking was one of them. It was a fad that influenced the world of cool. Like rock n’ roll, it was a cool thing to be doing and be part of. The bad side - smoking will kill you - was an unforeseen side effect, right? And sooner or later it will be gone. Well, fitness or family programming are not bad for you like smoking, but some clubs looked at them, from a risk assessment, because of their old-line culture. Another example is discounting of memberships and cutting, slashing or eliminating entry fees. That sort of precedent setting trend has been tough on clubs. It definitely was a fad in one market in which I worked. 92

BOARDROOM | May/June 2017

Unlike its peers, Apple seems content to make small adjustments to its existing products…making them bigger or smaller, removing their wires, or connections or ports. Not unlike clubs, it may seem like hubris, but I think its thoughtful, well governed leadership, allowing their staff to bring the best forward. In return, Apple is building a 2.8 million square foot main building and new surrounding campus for their 12,000 local employees with a price tag of around $5 billion dollars. In an industry full of companies around them taking pot-shots at the moon, Apple is being thoughtful, slow and deliberate. Club boards should heed the same - look for opportunities to improve slowly and carefully while giving your professional staff support and confidence to bring the options to the table and run the business. That way, instead of a crazy moonshot, you and your club can Lead ON! BR


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