BoardRoom magazine September/October 2023

C E L E B R A T I N G 27 Y E A R S O F E D U C A T I N G T H E P R I V A T E C L U B I N D U S T R Y ISSUE 309

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VOLUME XXVII SEPTEMBER/OCTOBER

BOARDROOM INSTITUTE PARTNERS WITH CLUB LEADERSHIP ALLIANCE BoardRoom Institute, is a customizable online learning platform designed to educate private club boards, their directors, committees, and committee chairs.

BoardRoom Institute’s core mission is to help clubs operate efficiently by optimizing the relationship between the volunteers and the paid executives through collaborative governance.

10 | PUBLISHER’S PERSPECTIVE

PREPARING THE FARM TEAM FOR THE MAJOR LEAGUES!

DISTINGUISHED GOLF DESTINATIONS DESERT WILLOW GOLF RESORT - 88 THE DUNES GOLF AND BEACH CLUB - 89 THE GRAND GOLF CLUB - 90

JOHN FORNARO IMPACT AWARD ROB DEMORE - 100 CARMEN MAUCERI - 102

BOARDROOM MAGAZINE TECHNOLOGY FEATURE — PAGES 50-81

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DAVE WHITE

EDITOR’S NOTE

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.

Where Will the Future Take Us? Artificial intelligence is hitting society in a big way and the private club industry is no exception.

We’re seeing all kinds of examples of AI in various fields, including education, medicine, transportation, and agriculture and it’s not going to stop here.

This is BoardRoom’s technology issue, so it’s relevant that several of our contributors have chosen to write about artificial intelligence, particularly as it relates to the private clubs industry.

Stephanie Castro, chief operating officer at Cobalt Software, asks, ‘What is AI’ and is your club ready? She suggests much of the world is paying attention to AI because of the popularity of Chat GPT, a text tool that, among other things, allows us to ask questions and get answers....quickly. An example of ‘generative AI’, it currently has over 100 million users.

In their article, ‘I Can See It Now’, Dr. Bonnie Knutson and cohorts give us some indication of where they think artificial intelligence is headed and the ‘potential new world of clubs.’

As the writers suggest, clubs already use AI to analyze member data, develop new ideas for club events, change menus and beverage offerings and adjust staffing levels.

Susan Greene, general manager/COO of Waterlefe Golf and River Club, outlines some potential developments that could shape membership and communication technology to advance enhanced engagement, connectivity and collaboration within clubs and their communities.

Trevor Kluke, marketing manager for Jonas software, suggests in his piece, ‘Future Considerations: AI and the Club Industry,’ that new AI tools and breakthroughs are happening almost weekly and that momentum will not slow down. But he encourages us to ‘take precautions’, a couple of words we often associate with artificial intelligence.

Club Benchmark’s Director of Governance and Leadership, Steve Mona, writes about ‘When Artificial Intelligence Comes to Private Clubs.’

“General managers and boards of directors should ask themselves how AI will impact private clubs. Note I did not say whether AI will have an impact but rather how much impact it will have and how soon.”

Mona suggests that with the advent of powerful AI technology, many tools already exist that can potentially transform elements of the private club experience. Mona poses this question: How can private clubs use AI to accomplish things and help connect more fully at a human level?

That question will likely take some time to answer, but in the meantime, AI marches on, and we’re only at the beginning of could be impactful change.

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BOARDROOM | SEPTEMBER / OCTOBER 2023

n n n

The John Fornaro Impact Award goes to those in the industry annually who demonstrate leadership qualities and innovation, strive for excellence and have an impact on the private club industry.

In this issue, we acknowledge the achievements of Troon Executive Vice President Rob DeMore and Carmen Mauceri, general manager of the Club Mediterra, Naples, FL. “Both Rob and Carmen are people who demonstrate strong business skills and creative approaches, a willingness to take risks, engage others and who face ambiguity with enthusiasm,” expressed BoardRoom’s publisher and CEO John Fornaro in recognizing their many contributions to the private club industry. n n n

There’s an exceedingly wide gap between what many boards of directors and committee members know and what they should know about their private club’s operation.

And that’s because many people elected to their club boards have not had experience as members of a 501(c)(7).

Certainly, many have participated as corporate board members, but that’s a different kettle of fish.

“For the longest time, there’s been a gap in education for committee chairs, committee and board members, especially when we’ve seen such growth in the educational programs and processes for private club general managers and other staff members,” said Fornaro, CEO of BoardRoom Institute.

So, what’s the solution? BoardRoom Institute, a customized online educational platform designed specifically for private club boards, their directors, committees, committee chairs and others associated with private club governance.

“Our objective is to bring affordable and credible club governance orientation to board members and committee members of private clubs,” Fornaro added. And now, BoardRoom Institute is doing so through a partnership with the Club Leadership Alliance.

This brings together three of the industry’s most highly respected consulting firms (Kopplin Kuebler & Wallace, the McMahon Group and Club Benchmarking) in partnership with BoardRoom Institute. Read more about this partnership in our cover story this issue! B R

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People Focused, Quality Driven

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Featured Columnists Eric T. Brey John G. Fornaro Dick Kopplin

Kurt Kuebler Nancy M. Levenburg Gregg Patterson

Whitney Reid Pennell Tom Wallace Dave White

Larry Hirsh Leon “Lee” Hoke Mitch Huffman Seung Hyun Kim Julia Kelly Trevor Kluke Bonnie Knutson Monte Koch Rick Ladendorf Craig Marshall Steve Mona Joe Oswald Robert D. Podley Pamela Radcliff

Kerri Rawcliffe Colin Read Corey Saban Larry Savvides Bill Schwartz Toni Shibayama Brad D. Steele Mike Strauss Robyn Stowell Scott Taylor Gordon Welch Don Williams Ed Yoder

Contributing Writers Ron Banaszak Rita Barreto Bruce Barilla Geoffrey K. Benedict Josh Bland Peter Cafaro Stephanie Castro JaeMin Cha Ronald F. Cichy Henry DeLozier Dave Doherty Ed Doyle Todd Dufek Chryssoula Filippakopoulos

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BoardRoom magazine is published by APCD Inc. 1100 S. Coast Hwy. #311 Laguna Beach, California 92691 The BoardRoom magazine (USPS 022516, ISSN 15537684) is a bi-monthly trade publication. Issue 309 Periodical postage paid at Laguna Beach, Calif. and additional mailing offices. POSTMASTER: Send address changes to THE BOARDROOM magazine, P.O. Box 9455, Laguna Beach, Calif. 92652.

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CONTENTS | SEPTEMBER / OCTOBER 2023

PUBLISHER’S PERSPECTIVES | 10

GLOBAL PERSPECTIVES | 12

PREPARING THE FARM TEAM FOR THE MAJOR LEAGUES!

IMPORTANCE OF PERSONALITY RESEARCH EVERYBODY DOES IT IN HIRING SUCCESSFUL CLUB LEADERS NANCY M. LEVENBURG

JOHN G. FORNARO

ERIC T. BREY

The number one investment a club can make is developing your club’s future committee and board members. It isn’t the golf course or the clubhouse. Yes, a club’s board of directors is tasked with guiding the operations of a private club, but what of the future?

Clubs and their members expect a lot from their managers and leaders. Do you ever wonder why some managers seem to succeed at a club where other, more knowledgeable professionals have failed? While often considered a soft skill, personality is so much more, as soft skills refer to your capability, and personality is the inherent qualities you demonstrate.

INSURANCE COMMITTEE | 16

BOARDROOM BASICS & BEYOND | 18

ARTIFICIAL INTELLIGENCE | 56

COVERAGE CRISIS IN THE MAKING

BUILDING AN E F F E C T I VE S E ARCH C OM M I T T E E

I CAN SEE IT NOW

As you are probably aware, the climate is a main topic of conversation today globally, whether it be rising or falling temperatures, adverse wind tolerances forming tornados or coastal blowouts creating storm surges.

All this can be summed up as a catastrophe, which is the main cause of increased insurance costs.

DICK KOPPLIN, KURT KUEBLER AND TOM WALLACE

A smooth, effective and trusted hiring process should be the goal for any private club embarking on a search for its next executive leader or department head. The club’s overall success depends on hiring the most qualified candidate who is the best fit for the leadership role.

When I started to write this article, I Googled Definition of Artificial Intelligence for fun and got 5.7 billion hits. In its simplest form, AI combines robust data sets with computer science to help solve problems. To get a fresh perspective on how and where clubs might use AI, I look outside the club industry. For example…

CLUB FACTS & FIGURES | 108

EXECUTIVE COMMITTEE | 122

TRIBAL MAGIC | 126

UPDATED UBTI EXPENSE ALLOCATION METHOD FOR SOCIAL CLUBS AND TAX-EXEMPT ORGANIZATIONS

THE POWER OF EMPATHY IN BRIDGING GENERATIONAL GAPS

CULTIVATING THE NEXT GENERATION

WHITNEY REID PENNELL

E D Y OD ER

Private clubs prioritize personalized service delivered by engaged, well-trained and compassionate employees. These individuals are critical in implementing the club’s strategic plan. Today, focusing on employee well-being is crucial for better performance. Managing a multigenerational workforce requires strategies supporting wellness and mitigating generational tensions.

Talented, educated, exposed, connected, energized, experienced and caring people are needed on committees and boards to ensure that good governance happens. Talent doesn’t “just happen.” A process is needed to ensure that the right people are chosen, the right mindset is developed and the right tools are supplied to members with potential for board service.

PHIL HARVEY

Selling food and beverages to nonmembers. Green fees. Advertising in newsletters. Pro shop sales. These are common activities that generate unrelated business income for tax-exempt social clubs.

PLIGHTS AND INSIGHTS | 14

I’m always amazed by the “everybody does it” logic. As the Logical Fallacies Handlist clarifies, “This argumentum ad populum asserts that, since the majority of people believes an argument or chooses a particular course of action, the argument must be true, or the course of action must be followed, or the decision must be the best choice.”

BONNIE KNUTSON, JAEMIN CHA AND SEUNG HYUN KIM

GREGG PATTERSON

SECTIONS

DEPARTMENTS

ARTIFICIAL INTELLIGENCE . . . . . . . . . . . 50

What Does It Mean for the Future?

G RE E N COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

ARTIFICIAL INTELLIGENCE . . . . . . . . . . . 51

By Mike Strauss

By Dave White

An Inside Look

When Artificial Intelligence Comes to Private Clubs

E XE CUTI V E COMMI TTE E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

Maximize Your Soft Skills to Make Success Likely in Hard Times

By Steve Mona

By Monte Koch

ARTIFICIAL INTELLIGENCE . . . . . . . . . . . 52

Future Considerations

B OA RD ROOM P E RSP E CTI V E S . . . . . . . . . . . . . . . . . . . . . . . . . 126

Leveraging Technology for Learning

By Trevor Kluke

By Gordon Welch

ARTIFICIAL INTELLIGENCE . . . . . . . . . . . 54

AI is Here. Is Your Club Ready?

By Stephanie Castro

TECHNOLOGY FEATURE . . . . . . . . . . . . . 58 NORTHSTAR . . . . . . . . . . . . . . . . . . . . . . 59 CLUBESSENTIAL . . . . . . . . . . . . . . . . 60-61 CLUBPAY . . . . . . . . . . . . . . . . . . . . . . 62-63 CLUBSYSTEMS GROUP . . . . . . . . . . . 64-65 CLUBTEC . . . . . . . . . . . . . . . . . . . . . . 66-67 COBALT SOFTWARE . . . . . . . . . . . . 68-69 FOOD-TRAK . . . . . . . . . . . . . . . . . . . 70-71 JONAS CLUB SOFTWARE . . . . . . . . . 72-73 MEMBERSFIRST . . . . . . . . . . . . . . . . 74-75 STRATEGIC CLUB SOLUTIONS . . . . . 76-77 SURVEY & BALLOT . . . . . . . . . . . . . . 78-79 PAISANO PERFORMANCE . . . . . . . . . . . 80 SIGNERA . . . . . . . . . . . . . . . . . . . . . . . . . 81 DISTINGUISHED CLUBS . . . . . . . . . . 86-87

The Milwaukee Athletic Club The National Club

By Ron Banaszak

DISTINGUISHED GOLF DESTINATIONS . . . 88

Desert Willow Golf Resort The Dunes Golf and Beach Club The Grand Golf Club

By Ron Banaszak

EXCELLENCE IN CLUB GOVERNANCE . . 98

Managing Your Club’s Waitlist Effectively Brand Management and Communication

By Henry DeLozier

COMMITTEES EXECUTIVE COMMITTEE . . . . . . . . . . . . 28

FINANCE COMMITTEE . . . . . . . . . . . . . . 49

By Rita Barreto

By Toni Shibayama

Leadership: Position Power Versus Personal Power

EXECUTIVE COMMITTEE . . . . . . . . . . . . 30

Silence. Seclusion. Solitude. Meditation. Reflection. - Part II

By Ronald F. Cichy

EXECUTIVE COMMITTEE . . . . . . . . . . . . 32

Choosing the Right “Doctor”

By Peter Cafaro

EXECUTIVE COMMITTEE . . . . . . . . . . . . 34

Who Are the Club’s Most Important Members?

By Larry Hirsh

EXECUTIVE COMMITTEE . . . . . . . . . . . . 36

Operationalizing Your Strategic Plan

By Leon “Lee” Hoke

EXECUTIVE COMMITTEE . . . . . . . . . . . . 38

The Mindful Mindset Three Case Studies on Collaborative Governance

LAW & LEGISLATION . . . . . . . . . . . . . . 116

By Rick Ladendorf and Craig Marshall

By Robyn Stowell

EXECUTIVE COMMITTEE . . . . . . . . . . . . 42

Proxy Voting

ON THE FRONTLINES . . . . . . . . . . . . . . 123

Attitude in Country Club Leadership

By Robert D. Podley

INNOVATIVE IDEAS . . . . . . . . . . . . . . . 127

BallenIsles Country Sports Complex

By Chryssoula Filippakopoulos

Modernizing the Committee Experience

By Colin Read

EXECUTIVE COMMITTEE . . . . . . . . . . . . 46

Does Your Board Member Orientation Need a Refresh?

By Brad D. Steele

THIS MUCH I KNOW . . . . . . . . . . . . . . . 134

The Three Biggest Myths About Private Club Governance

By Dick Kopplin

FINANCE COMMITTEE . . . . . . . . . . . . . . 48

Preparing Private Clubs for the Post-Pandemic Economy

By Kerri Rawcliffe and Geoffrey K. Benedict

Being Leadership Driven Is All About Job Safety F&B COMMITTEE . . . . . . . . . . . . . . . . . . 84

A Restaurant Concept Is More Than An Idea

By Ed Doyle

HOUSE COMMITTEE . . . . . . . . . . . . . . . . 92

Reasons for Lack of Locker Room Use … and Solutions

By Bruce Barilla

BOARDROOM COMMENTS . . . . . . . . . 110

By John G. Fornaro, Dave White and Heather Arias de Cordoba With Kurt Kuebler and Larry Savvides

COVER STORY . . . . . . . . . . . . . . 20 BoardRoom Institute Partners with Club Leadership Alliance

By Dave White

COVER STORY . . . . . . . . . . . . . . 26 Benefits and Advantages of BoardRoom Institute

HOUSE COMMITTEE . . . . . . . . . . . . . . . . 94

Rookie Locker Room Employees Often Plagued by a Sense of Entitlement

By Todd Dufek

JOHN FORNARO IMPACT AWARD . . . 100

Rob DeMore

By Julia Kelly

GREEN COMMITTEE . . . . . . . . . . . . . . . 107

Necessity Forces Change

By Dave Doherty

HR COMMITTEE . . . . . . . . . . . . . . . . . . 118

Necessity Forces Change

By Pamela Radcliff

COMMUNICATION COMMITTEE . . . . . 120

Ten Things to Do To Stay Plugged In

By Josh Bland

COMMUNICATION COMMITTEE . . . . . 121

Mastering the Art of Public Speaking A Vital Skill for Country Club General Managers

By Corey Saban

JOHN FORNARO IMPACT AWARD . . . 102

Carmen Mauceri

JOHN G. FORNARO

PUBLISHER’S PERSPECTIVE

John G. Fornaro is the publisher/CEO of BoardRoom magazine, co-founder/CEO of Distinguished Clubs and the CEO of the Association of Private Club Directors (APCD). If you have comments on this article or suggestions for other topics, please contact John Fornaro at (949) 376-8889 or via email: johnf@apcd.com

Preparing the Farm Team for the Major Leagues!

The number one investment a club can make is developing your club’s future committee and board members. It isn’t the golf course or the clubhouse.

Yes, a club’s board of directors is tasked with guiding the operations of a private club, but what of the future? How does a club prepare upcoming committee members for their role on club committees, as committee chairs and, further down the road, board members and club presidents?

To draw an analogy, it’s like a major league baseball team.

Before players make it to the majors, they undergo extensive training, usually on the club’s farm teams, to be educated about their future roles and gain experience as they commit to their club’s future.

This is often where the difficulty arises for clubs because many potential board members have participated in board activities, for example, with business corporations and are familiar with board members’ roles and responsibilities of those corporations.

However, the roles and responsibilities of 501 (c)(7) are quite different from the requirements for corporate boards.

Potential private club board members are often only aware of these differences once they become a private club board member.

That’s why it’s vital to identify, inform and educate committee members (the farm team) before becoming committee chairs, board members or the board president (the majors).

Clubs can protect themselves if they can prove they have properly educated, trained and oriented their board members. For the past 27 years, this has been the mission of Boardroom magazine... to raise a problem and seek a solution, to encourage the training and education of potential committee members, committee chairs and board members. It’s also the raison d’etre for Boardroom Institute – our online orientation program for private clubs.

It’s essential to draw the distinction and know and understand the differences between 501(c)(7), 501(c)3 and forprofit private clubs.

1. 501(c)(3): These charitable organizations, such as non-profits, religious organizations and educational institutions, serve the public good. They are tax-exempt, donations are tax-deductible and they cannot engage in political activities.

2. 501(c)(7): These are social and recreational clubs, like private or hobby clubs. Clubs operate for the pleasure of its members. They have tax-exempt status, but contributions aren’t tax-deductible. They operate primarily to benefit their members and cannot engage in significant commercial activities.

3. For-profit private clubs: These are businesses run for profit, like country clubs or exclusive social clubs. They are not tax-exempt. They operate to make money. Membership fees and activities generate revenue.

“While speaking to a group of 160 general managers and club board members recently, I asked how many were familiar with a 501 (c)(3) board. Several raised their hands. When asked how many were familiar with a 501 (c)(7) board, only two people raised their hands,” explained BoardRoom’s CEO John Fornaro.

“It’s the many differences between these boards that potential private clubs committee and board members need to understand. For example, the potential liability issues for a 501 (c)(7) club and board members are quite different, and it’s important potential committee and board members know the difference. That’s where education offered through BoardRoom Institute becomes most valuable to private club committee and board members and that’s the benefit of preparing club members for their work on committees, as committee chairs and ultimately as board members and a club’s president,” he opined.

SEE PUBLISHER’S PERSPECTIVE | 128

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BOARDROOM | SEPTEMBER / OCTOBER 2023

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ERIC T. BREY Eric T. Brey, PhD is a director at GGA Partners, leading research initiatives. He can be reached at eric.brey@ggapartners.com.

GLOBAL PERSPECTIVES

Importance of Personality Research in Hiring Successful Club Leaders

Clubs and their members expect a lot from their managers and leaders. Personality can be the key to success in exceeding those expectations.

Do you ever wonder why some managers seem to succeed at a club where other, more knowledgeable professionals have failed?

While emphasizing operational skills creates functional prowess, personality’s role in success is often overlooked. While often considered a soft skill, personality is so much more, as soft skills refer to your capability, and personality is the inherent qualities you demonstrate. Focusing on a candidate’s personality is vital to ensure a healthy work environment and positive engagement among employees.

Personality traits are features of your character that exist as part of who you are, or they are learned and developed through your life experiences. The range of personality characteristics changes as people act differently between situations and are influenced by external forces throughout their careers and lives. With more than 600 positive and negative traits, personality tests help us understand who we are and how we can improve.

But why this emphasis on personality? Simply put, personality provides insights into how someone will behave in various roles.

These traits drive us to act as we do daily, and they drive us to potentially act “like someone else” when we are under pressure.

Managers who want to grow in their careers and clubs looking for the next great leader must understand that personality characteristics that excel in one type of working environment may not find the same level of success in another.

PERSONALITY TRAITS Knowing that external forces such as a club’s environment can limit the success of some managers while elevating others, our research at GGA Partners looks beyond the individual by examining the preferred personality traits needed to succeed in various positions and club types. Researchers asked stakeholders what they believe leaders need to succeed in their clubs. Our research classified personality traits into four desired categories: supportive, inspiring, driving and analytical.

Supportive personality traits: Clubs that want individuals who demonstrate thoughtful consideration prefer people with supportive personality traits. These amiable individuals are modest while being reliable and excellent listeners. Leaders who demonstrate these personality traits are typically well-balanced and bring a level of patience and a feeling of ease to those around them.

Inspiring personality traits: Clubs looking for leaders who can inspire others to pursue a vision desire people with inspiring personality traits. These expressive personalities can be social and prefer to 12

BOARDROOM | SEPTEMBER / OCTOBER 2023

be involved in conversations because they are outgoing and ambitious. Leaders who demonstrate these easygoing traits are typically confident and enthusiastic and can motivate those around them.

Driving personality traits: Clubs searching for result-oriented and ambitious individuals prefer people with driving personality traits. These independent individuals can be straightforward and impatient in their desire to innovate. Leaders who demonstrate these potentially aggressive traits are often pioneers who can push others to excel.

Analytical personality traits: Clubs seeking people who are logical and systematic in their thoughts and actions prefer people with analytical personality traits. These meticulous individuals can be reserved but seek facts and time to make decisions. Leaders who demonstrate these structured traits are often objective and methodical in their perfectionist work.

WHY PERSONALITY MATTERS No one group of personality traits leads to success. A balance of supportive, inspiring, driving and analytical traits is necessary.

The balance must be adjusted based on the club’s needs, the environment in which a manager or leader is placed, and the position for which they are hired. Take, for instance, the importance of analytical traits for a financial controller or the inspirational needs of those tasked with leading a club’s health and wellness department.

Both positions require a range of traits, but those hired must excel in the areas these positions require.

More important is the interaction between the individual traits across the four groups. Take professionalism and how this critical trait interacts with other personality aspects. Exhibit 1 is a generalized example illustrating that professionalism does not exist independently. Clubs are looking for people who can demonstrate professionalism across other traits, such as how they listen, communicate and establish an environment of approachability.

How does this impact a club’s desire to hire the next great leader, or how does this impact a manager’s desire to find the right leadership position? The role of personality becomes clear by looking at a club’s current situation. For instance, a club with high staff turnover and member dissatisfaction has different needs than one focused on building on its market leadership position and status as an internationally recognized club. Just because a potential COO/ GM demonstrates inspiring traits does not mean that the person’s other personality attributes will deliver success in both scenarios.

Ultimately, each club’s culture is different, and their environmental differences must play a role in finding the right leader or position. No perfect personality mix exists, and understanding the club’s environment is a critical component that can be overlooked in matching the position’s needs and the right person. BR

NANCY M. LEVENBURG Nancy Levenburg, PhD, is professor emerita in management from the Seidman College of Business at Grand Valley State University in Grand Rapids, MI. She has published hundreds of 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 a member of Spring Lake Country Club in Spring Lake, MI. For more information, contact her at: levenbun@gvsu.edu or (616) 821-5678.

PLIGHTS AND INSIGHTS

But Everybody Does It “Conformity is doing what everybody else is doing, regardless of what is right. Morality is doing what is right, regardless of what everybody else is doing.”

– Evette Carter I’m always amazed by the “everybody does it” logic. (And no, I’m not talking about the 1949 comedy film starring Paul Douglas, Linda Darnell and Celeste Holm.)

What I am referring to is commonly known as the “bandwagon approach.” As the Logical Fallacies Handlist clarifies, “This argumentum ad populum asserts that, since the majority of people believes an argument or chooses a particular course of action, the argument must be true, or the course of action must be followed, or the decision must be the best choice.”

This is known as a moral fallacy because it is based on a flawed assumption that somehow the ethical nature of an act is improved by the number of people doing it. So, if “everybody does it,” it is implicitly right for you to do it.

But is it? Here is one example. Grand Haven is a scenic resort community along Lake Michigan with a quaint downtown area with marked crosswalks. Bill sees everyone zig-zagging across Washington Avenue – the main drag through the downtown area – to patronize retailers on either side of the street. But they are not using the marked walkways. So, he also decides to cross at whim, ignoring the designated walkways.

Unbeknownst to Bill, a police officer (Joe) witnesses Bill’s ill-timed (and unsafe) street crossings and asks him about it.

Bill replies that he thought it was OK because everyone was doing it.

In Michigan, this is jaywalking. And in Michigan – as in most states – jaywalking is illegal. While Bill may only be issued a warning, he could receive a civil infraction.

Bill’s logic appeals to popular opinion instead of the law.

Many people were also jaywalking, but it doesn’t make it legal – or OK – for Bill to do it. Therefore, Bill was incorrect to think it was OK to cross the road when he did.

Similarly, many private clubs – board members and club managers – suffer from the misperception that when they distribute cash “holiday gifts” to employees (after collecting

14

BOARDROOM | SEPTEMBER / OCTOBER 2023

“holiday fund” donations from members), they do not need to consider holiday gifts as income wages to employees. Although they may be aware of the tax implications, they opt not to follow them because “everybody does it.”

Unfortunately, they’re wrong. It’s like jaywalking across the street. Regardless of whether everybody else is doing it, this practice is a tax violation.

Holiday gifts, bonuses and awards given to employees have tax implications for employers. Gifts and awards (whether in cash or otherwise, such as gift certificates) your club gives employees are considered additional W-2 wages, subject to payroll and income taxes.

The Internal Revenue Service considers employee gifts in cash or gift certificates/coupons – regardless of the amount – as W-2 wages, subject to withholding taxes. With a gift certificate or coupon, the tax applies to the face value.

Only if the holiday gift is in a form other than cash or a gift certificate/coupon and only if the value is small could it be regarded as a De Minimis Fringe Benefit, in which case it would not be taxable.

The IRS defines a de minimis fringe benefit as “any property or service provided to an employee that has so little value (taking into account how frequently similar benefits are provided to all employees) that accounting for it would be unreasonable or administratively impracticable.”

IRS examples include controlled, occasional employee use of photocopiers; occasional snacks, coffee, doughnuts, etc.; occasional tickets for entertainment events; and flowers, fruit, books, etc., provided under special circumstances.

The IRS requires you to report the value of holiday gift money an employee receives on the employee’s Form W-2 for that year. The Club Tax Guy (Mitchell Stump, a certified public accountant) says this is not debatable.

As William Penn wrote, “Right is right, even if everyone is against it, and wrong is wrong, even if everyone is for it.” BR

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PHIL HARVEY

INSURANCE COMMITTEE

Phil Harvey is founder and managing director of PREFERRED CLUB which is the leading all-lines insurance solution for the private club industry and administered by Venture Insurance Programs.

He can be reached at pharvey@ventureprograms.com or (800) 282-6247 ext. 223.

Coverage Crisis in the Making As you are probably aware, the climate is a main topic of conversation today globally, whether it be rising or falling temperatures, adverse wind tolerances forming tornados or coastal blowouts creating storm surges. All this can be summed up as a catastrophe which is the main cause of increased insurance costs.

Securing affordable property insurance, however, has become a challenge whether it be as basic as homeowners coverage to more complex offerings in the commercial marketplace.

Options continue to shrink across our country as the effects of climate change ravage insurers’ profits, thereby constricting their risk appetite. I could go on and on as to the initial lack of supply in markets such as California, Texas and Florida, but today it has spread to most areas of the country.

CLUBS AND INSURANCE SUPPLY What is the current posture of the insurance community to the club industry? Extremely cautious. The new normal means paying closer attention to insurance than you have in the past.

Carriers that provide covers today to the industry are concerned about the rising cost of rebuilding, increased exposure to catastrophes like wildfires and the escalating expense of the insurance it buys for itself in the form of reinsurance to offload large sums of financial risk. Where is this headed?

Nationally, premiums rose 12.4 percent in the first quarter, according to S & P Global Market Intelligence, the highest increase in nearly two decades. Although the first quarter topped all previous quarters since 2020 at a whopping 22 percent, the results of catastrophic events linger in the marketplace.

Carriers continue to depart from the club market due to the inability to achieve positive profits in this class of business. A decade ago, there were close to a dozen suppliers of commercial insurance to the club business, and today there are less than six major providers. Lack of reinsurance paired with poor underwriting results forced many insurers and reinsurers out of the business in this class.

This resulted in substantial voids in coverages, and not replaced by new entrants. Suppliers in many of these areas of coverage are quite limited in offerings and limits.

Traditional coverages are harder to secure. Finding coverages that are comprehensive at reasonable prices is becoming increasingly complex.

Many of you as insurance buyers can relate to explanations of coverage variances not only in the area of property but also in 16

BOARDROOM | SEPTEMBER / OCTOBER 2023

liability. Some examples of expensive limited offerings such as D & O and employment practices and cyber liability. Many states are creating last resort supply lines to provide cover to those who cannot qualify in the standard market due to location or risk profile.

Since most clubs are secured by lenders, the coverage required as well as the financial rating of the carrier are a must for the club to maintain. This in most cases adds to the costs to meet the risk profile of the club.

Many carriers are paying closer attention to insurance to value due to replacement cost issues and inflation. As a result of a tightening of the abilities of standard markets to provide supply, there may be nontraditional options that the brokerage market needs to approach and recommend such as surplus lines of non-admitted insurers who are lightly regulated and not backed by the state guarantee funds.

These insurers can cancel at will on short notice if their exposures suffer adverse results. Many places are experiencing this currently – California, the West and the Gulf states with homeowners coverage.

COST-SAVING STRATEGIES In a world where we continually eliminate the middleman in the complex task of evaluating and recommending insurance coverage, it is invaluable to contract with a capable independent agent or broker. Not only in securing the best options available in the ongoing market but also in presenting the most viable options and prudent choices. They can further provide strategies such as higher deductible options as well as parametric wind covers.

It is vital to create a risk profile at your club to mitigate your exposure to large claims such as wind. Damage to the premises, including trees or water damage, is normally a result of freezing or faulty fire suppression systems. These usually are the largest property claims that occur.

Although climate change will be ongoing, it is vital to be matched up with insurance club specialists who are committed to the market and understand your exposure. B R

DICK KOPPLIN

KURT KUEBLER

TOM WALLACE

BOARDROOM BASICS AND BEYOND

Building an Effective Search Committee A smooth, effective and trusted hiring process should be the goal for any private club embarking on a search for its next executive leader or department head.

The club’s overall success depends on hiring the most qualified candidate who is the best fit for the leadership role.

Based on our firm’s experience in the private club executive search business since 1997, one of the most important factors determining the success of the leadership hiring process is the makeup of the search committee.

The search committee can make or break the effectiveness and efficiency of the executive search process. Members serving on this committee should be purposefully and carefully identified to ensure the best possible outcome. The club should require that these committee members meet certain conditions and be willing to invest the time and energy necessary for the commitment. Those serving on the search committee should be aware of their significance in the success of the hiring of the next executive leader or department head.

When selecting search committee members, confidentiality is of utmost importance. It is as imperative as finding the best candidate for the job. Search committee members should always maintain confidentiality and never reveal information about the candidates or their current positions before the club makes an official announcement.

Even an inkling to a friend or colleague who may know a candidate, or knows a member at a candidate’s current club, could jeopardize the search. Candidates’ jobs could be at stake, the risk of losing exceptional candidates in the search may be high and organizational credibility could be damaged. For this reason, only trusted members who will provide complete confidentiality should be invited to serve on the search committee.

The composition of the search committee should have representation from various demographics and club constituencies, including active members who represent a variety of the club’s programs.

Typically, frequent users of the club and a cross-section of tenured, senior members and younger, newer members are recommended. Members serving on club committees likely understand how the management/governance works and are committed to the betterment of the club.

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Finding members who enjoy and support the club and who will positively represent the club is ideal. These members will interact with candidates.

While the committee is interviewing candidates and determining their capabilities and fit in the role, candidates will be observing committee members to determine if the club culture and members’ mentality are compatible with their career goals. We often say the more chamber of commerce-type members on the committee, the better.

We recommend at least five but no more than seven members make up the search committee. Odd numbers are best in case of a tie, and the fewer the members the better because of the discretion required. Too many opinions often hinder the efficiency and effectiveness of the process, offering another reason to keep the group tight.

A lot of time, effort and commitment is required of the search committee, and it is a responsibility that should not be taken lightly. These members will receive a substantial amount of information about candidates, including resumes, questionnaire responses, professional portfolios and behavioral assessments.

It is not unusual for these documents to add up to more than 200 pages. In addition, search committee members will participate in multiple candidate interviews and possibly even dinners or social events with the final candidates. A commitment to participation is a contributing factor to the success of the committee and the entire hiring process.

Lastly, it is important to determine the role of the search committee in advance of compiling the committee. In our experience, a best practice is to have the search committee recommend the final candidate(s) to the board of directors, and then the board meets with the final candidate(s). We recommend the board makes the final decision along with the input and support of the search committee.

All of these factors must be considered when determining the makeup of the search committee. To ensure the best candidate is selected for the job, it is vital to create a smooth, effective and trusted hiring process by establishing the best possible search committee. B R

BoardRoom Institute Partners with Club Leadership Alliance Using Technology to Educate Club Committee and Board Members

By Dave White, editor As a member of your club’s board of directors, are you struggling with your club’s governance model? Do you understand the role you play on your club’s board? Are you aware of your fiduciary responsibilities as a board member… or ??

There’s an exceedingly wide gap between what many boards of directors and committee members know and what they should know about their private club’s operation.

Why? Because, yes, many people elected to their club boards have experience as board members rather than as members of a non-profit 501(c)(7) board, the modus operandi for many private clubs. It’s often something they haven’t experienced.

As well, clubs need to make sure that their board members are well-informed and educated about their roles as board members.

So, what’s missing? How ‘bout the right kind of education for your board members?

“The education of a club’s committee and board members is crucial,” said John Fornaro, CEO of the Association of Private Club Directors, publisher of BoardRoom magazine and CEO of BoardRoom Institute.

“For the longest time, there’s been a gap in education for committee chairs, committee and board members, especially when we’ve seen such growth in the educational programs and processes for private club general managers and other staff members.

“To be blunt, even as various groups and companies have made efforts to educate volunteer committee and board members, a tidy, compact way of getting education to these volunteers has been lacking,” Fornaro added.

Today, that’s changed because of BoardRoom Institute, a customized online educational platform designed specifically for private club boards, their directors, committees, committee chairs and others associated with private club governance.

BoardRoom Institute’s core mission is to help clubs operate efficiently by optimizing the relationship between the volunteers and the paid executives through collaborative governance, helping them understand their fiduciary duties and reducing the liability of board members and the club.

“Our objective is to bring affordable and credible club governance orientation to board members and committee members of private clubs,” Fornaro espoused.

®

P R I VAT E C L U B P L A N N E R S & C O N S U LTA N T S

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Today, BoardRoom Institute is doing so through a partnership with the Club Leadership Alliance (www. clubleadershipalliance.com).

This brings together three of the industry’s most highly respected consulting firms (Kopplin Kuebler & Wallace, the McMahon Group and Club Benchmarking) in partnership with BoardRoom Institute.

“The owners and team members within the Club Leadership Alliance have the experience, credibility and expertise I’ve been seeking in a partnership,” emphasized Fornaro.

“I’ve known and respected Dick Kopplin, William McMahon and Ray Cronin for over 27 years. They’re the missing link in making BoardRoom Institute a true solution to private clubs’ governance and leadership issues today,” Fornaro added.

BoardRoom Institute provides shared knowledge, makes annual orientations affordable, mitigates micromanaging (the scourge of all private clubs), and ensures all stakeholder understand their duty of care with an emphasis on legal and fiduciary obligations. It promotes board and committee development and growth.

“All great clubs have one thing in common; they get their governance right and this is what BoardRoom Institute can help them do,” expressed Kopplin.

“BRI can provide an outstanding education for general managers and club board and committee members. Additionally, the knowledge shared from club industry experts can reduce or eliminate the issue of micromanagement – one of the most vexing issues in clubs – by providing role clarification for club employees and members volunteers who serve the club as board of committee members,” he added.

“It sounds basic, but the fact board and committee members don’t have a strong understanding of their roles and responsibilities remains one of the fundamental challenges facing private clubs today, ” explained Gordon Welch, president of the Association of Private Club Directors, the parent association of BoardRoom Institute, BoardRoom’s education arm.

“Board members and committee members ‘think’ they understand how to run a club, but without a proper introduction to the many facets of club management and the industry, they and their managers will fail.

“Board members must be educated about the 501(c) (7) organization. Some clubs provide an orientation or overview of the club’s operation. APCD believes that effective board leadership and governance requires an ongoing commitment to board development and a healthy board/staff relationship. We work to effect positive change with club boards and their committees through collaborative governance,” Welch elaborated.

“Our mission is to help clubs operate efficiently by optimizing the relationship between the volunteers and the paid executives through collaborative governance. And to reduce the liability of your board members and the club,” explained Fornaro.

“BoardRoom Institute brings affordable and credible club governance orientation to private club board and committee members. It offers the latest technology to educate, inform and prepare private club committee members, potential and

present board members and club presidents for their roles and responsibilities. This includes legal issues, fiduciary duties and hundreds of other issues that will most likely confront private clubs today,” he said.

In a nutshell, BoardRoom Institute offers customized online education for private clubs. It offers flexibility; it’s convenient and cost-effective and provides course variety with access to expert speakers and content. It’s personal education with repeated access to course material.

“Because BoardRoom Institute provides information aligned with the best practices endorsed by the Club Leadership Alliance and embraced by top-performing clubs, there are many reasons to admire and trust it as a resource that prepares and engages board and committee members,” commented John Schultz, CEO of the Club Leadership Alliance.

“Club-specific practices and processes are brought to life, preparing club leaders to be informed, strategic stewards of their club and to meet their responsibilities from day one.

“When a club has informed leaders, this facilitates strategic stewardship and empowers managers and staff to provide compelling member experiences. These core values are at the heart of the Club Leadership Alliance and BoardRoom Institute. The most highly regarded and recognized industry experts and brightest minds are behind BoardRoom Institute and they all have direct experience with the topics they cover in the video modules.

“The numerous benefits of online board education for a club’s board of directors and general manager begin once a club is aligned with a reliable resource. This is why CLA partnered with BoardRoom Institute. It’s education that is aligned with the core values and best practices that we endorse and that top-performing clubs embrace to remain relevant and enduring,” Schultz added.

“Access to board and committee training materials is the wave of the future. The days of big binders and packets of paperwork have passed,” offered KK&W principals Dick Kopplin Kurt Kuebler and Tom Wallace.

“Virtual onboarding and training for roles and responsibilities saves time and offers volunteer leaders the convenience of reviewing the instruction on demand. Educated leaders are more effective, thus creating a better volunteer service experience and a more efficient board.

“Convenient access to information makes board meetings and decision-making more efficient when participants arrive prepared. It also offers accountability tracking for the club.

This is great news from a legal-verification standpoint and allows for review of each person’s commitment to the club’s best practices,” the trio added.

“In addition, top candidates that clubs are recruiting will look at tech tools that can help them be more successful in their club positions. Clubs that are not making technological investments in their operations and amenities won’t attract and retain top talent. Candidates prioritize clubs that ➤ embrace and invest in technology,” they said.

SEPTEMBER / OCTOBER 2023 | BOARDROOM

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“BRI is a key resource to club professionals and their boards and committees to provide a common understanding and framework for continuity and success. By providing prospective, newly elected or appointed volunteer leaders understanding of best practices in the industry and doing so in a framework to then track effectively who has been exposed to these best practices, clubs can more likely minimize risks of failure of alignment and can drastically improve and address the most common element of dysfunctional club leadership –misunderstanding of roles, responsibilities, the club business model and a whole array of other issues,” elaborated partner Kurt Kuebler.

“BRI is not intended to be an ‘end all be all’ for every club, but proven best practices are outlined and club leader may then adapt standards for their respective operations.

“One size doesn’t fit all, but by providing this common framework, dedicated leaders can develop and memorialize standards that become the framework for continued success in the future, rather than having to ‘reinvent’ each year as different perspectives and, oftentimes, agenda-driven volunteers participate and join the board or are appointed to committees.

“The single most cited element of inconsistency in club operations is lack of standards of operation for both staff AND volunteer leaders. BRI is the only available source to address and help club leaders address this fundamental issue plaguing many clubs around the country,” he stressed.

“Given the constant churn in the volunteer leadership, on-demand education regarding the private club industry is not a luxury; it’s a necessity,” exclaimed Ray Cronin, cofounder and CEO of Club Benchmarking.

“Clubs with sound, foundational, perpetual education and orientation of volunteer leadership enjoy continuity of vision centered on the requirement that clubs are continuously and consistently evolving.

“For the board, BoardRoom Institute offers insight and information on demand and for the general manager, it offers the ability to scale leadership educational seamlessly,” Cronin added.

“The beauty of the BoardRoom Institute is that it provides club leaders easy, flexible access to educational modules delivered by club industry’s most knowledgeable and experienced experts, all at a low cost,” expressed Frank Vain, president of the St. Louis-based McMahon Group.

“The modules cover a broad range of topics, from the macro trends impacting the private club industry to tools and tips on how to govern, manage, fund and plan a successful club.

“As the saying goes, knowledge is power and effective delivery of this power comes from widespread understanding and adoption of the best practices that work in the unique environment of a private club. This begins with informed leaders - volunteers and executives that understand the club business model and their role in creating a high-quality, high-value member experience,” Vain added.

“A key advantage of the BoardRoom Institute is how easy and cost-effective it is to provide quality information throughout all levels of the organization. Members no longer need to attend 22

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a meeting or do a lot of research on their own. They can tune into a large library of topics when it suits their schedule. It’s also possible to monitor participation, so the club leaders and management can know that the other board and committee members have reviewed the Information,” Vain stressed.

“The efforts of the volunteers are what make the private club such a special entity - they are self-governed political, cultural, social, and economic labs. Clubs can’t function effectively without the efforts of the members, but they also can’t work effectively with misguided or emotional input from the members.

“Access to online education means these folks can learn proven best practices when it fits their schedule. It can be a training ground that can help groom future leaders right at the start of their participation on a committee and help them as they progress through Increasingly responsible roles,” Vain added.

“One of the core values of the Club Leadership Alliance is informed leadership. The more the volunteers and executives understand the most effective ways to govern, manage, fund, plan and maintain their club, the more effective they can be in discharging their duties.

“This is essential in creating the nirvana of clubdom: Strategic governance and empowered management. Unfortunately, this is the opposite of what exists at many clubs: micromanagement by well-meaning but often misinformed volunteers who try to apply the practices from their professional experience to a private club’s complex social and operational environment,” Vain cautioned.

“When the leadership and executive understand the club business model, which recognizes that dues revenue and capital generation are the critical elements supporting the promise of club membership - preferred access to quality amenities and programs - they clearly understand their respective roles and responsibilities. In this model, they can work together to make their club successful.”

From KK&W’s point of view, there are other benefits for the club’s board and general manager.

“Secure portals with dashboards displaying how key performance indicators can be tracked, along with other key data, provide real-time insights on operational progress,” articulated KK&W principals.

“The highest performing clubs now use key performance indicators on three levels: board, committee and per operational department. This enhanced reporting is easier to read and access to it allows board and committee members to be more informed, leading to more efficient meetings.

“The ability for board and committee members to access and review information at their convenience increases the likelihood of their engagement and involvement and boosts their confidence and understanding of the material. This creates more informed leaders who make better decisions for the club.

“For the GM, using technology allows for increased efficiency, better communication and saves time. It also ensures there is one designated space for all the documents to ‘live’ for easy access and reference,” they added. ➤

“BoardRoom Institute offers essential education for board members,” continued CLA’s CEO Schultz.

“Whether a seasoned board member wants to learn more about a specific area that will help them address a certain issue or challenge, or a new board member requires a comprehensive orientation, BoardRoom Institute makes that information readily available, as does the Club Leadership Alliance Board Portal powered by BellesBoard.

“Both are searchable repositories of documents that include committee education. A board member can learn the ‘why’ behind the importance of confidentiality, for example, and their fiduciary responsibilities as a board. And again, it’s BoardRoom Institute, so you know it’s comprehensive and reliable information,” Schultz emphasized.

“For the general manager, online board education is easily shared with department heads and/or managers with responsibility as committee liaisons. It allows a unified approach that gets each constituency on the same page. It allows the setting of expectations and accountability through understanding and top-to-bottom alignment.

“For both boards and general managers, participating in online board education is due diligence that can stand up against the legal issues that can come back to haunt the club.

“BoardRoom Institute is very much the key to understanding board dynamics and is essentially a road map that facilitates informed leadership at the club,” Schultz maintained.

“The technology behind BoardRoom Institute means that club leaders can provide flexible, low-cost access to industry best practices to all stakeholders, from the president and executive committee to all committee members and, in fact, any interested members,” explained McMahon’s Vain.

“This can lead to widespread understanding and adoption of proven best practices for club success. The technology can also measure participation so the leadership knows that the other leaders and members are reviewing the information.

“Effective governance is the engine that drives a private club’s success. Before BoardRoom Institute, it would take a member years of research and committee meetings to learn the business,” he added.

And, of course, the desired scalability and educational process flows from BoardRoom Institute’s online technology, a fact emphasized by the CLA-BoardRoom partnership. Twenty of the industry’s top leaders present content on about 85 different topics...information that’s constantly updated.

“Topics include an introduction to private clubs and the history of clubs, governance, committee roles and responsibilities, club finance, best practices and strategic planning, and we’re adding two new sections for mindfulness and homeowners associations,” explained APCD’s Welch.

Participants also have 24/7 access to the educational content.

“As the only online board learning platform available, the best advantage is that users can log in from anywhere, anytime. It can be used in board meetings as a group or by individuals! This makes the platform easy to use and manage.

“The GM can have a whole team working with them.

Boardroom Institute can be used for staff, committees and 24

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board members, and homeowners associations,” Welch added.

“Secure and live communication platforms are helping boards proactively address problems as they arise, rather than waiting for meetings to hash out challenges,” explained the KK&W partners.

“Real-time messaging is a more high-touch way to address member and staff issues and allows situations to be dealt with promptly. In addition to enhancing communication, technology allows club leaders to track feedback and situations, document a plan and close the loop. This makes handling difficult situations more comfortable and consistent for members and staff,” they explained.

“In combination with an effective club-specific board orientation and use of the Club Leadership Allianceboard portal powered by BellesBoard, integrating BoardRoom Institute with a club’s approach to governance invests each club with the power to provide scalable options for education and understanding of the best practices that drive relevant, enduring clubs,” CLA’s Schultz commented.

“Adding technology solutions allows a club to show the proactive nature of their governance, and not simply that the club is doing what they did last year,” he advised.

“Board and management surveys conducted by Club Benchmarking clearly show that most boards do not recognize much of the basic information about the club. Most board members take an understanding of club governance, processes and business systems for granted, but few truly understand these areas,” Schultz offered.

“BoardRoom Institute provides an outside source for understanding complicated issues (like F&B) without creating a bigger issue or problem. Many ‘what if’ questions are answered by the experts in the session materials.

“BoardRoom Instituted sets the criteria and framework for the most important committee – nominating. All club committees can utilize the site, becoming familiar with club governance processes and practices. Those that become board members down the road will have an advanced degree of understanding from the beginning and an awareness of the value of informed leadership and strategic stewardship,” Schultz stressed.

In Ray Cronin’s opinion, “There is little to no scalable education for volunteer leaders without BoardRoom Institute. BRI is THE scalable governance education platform,” he emphasized.

And we leave the last words to BoardRoom’s CEO Fornaro: BoardRoom Institute is specifically designed for equity private clubs.

• It cuts micromanagement by the board and committees • Minimizes clubs’ and board members’ liabilities • Saves thousands of dollars in consulting fees • Allows board and committee members to access content on their time • The GM and president, through access to the dashboard, can see what board and committee members have viewed and understand the content, and • There’s accountability...the key to BoardRoom Institute. BR

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Benefits and Advantages of BoardRoom Institute!

Using BoardRoom Institute’s online technology for private club board of directors and committee members’ orientation offers several advantages and benefits that also extend to the club’s general manager.

locations. It can accommodate new board members as they join the club, ensuring a standardized and efficient(54448) onboarding process.

1-855-49-LIGHT 12. Savings: Saves private clubs thousands of dollars in consulting fees.

13. Long-term success: Ultimately, the benefits of Boardroom Advantages for private clubs boards of directors: Institute contribute to private clubs’ long-term success and sustainability.

1. Convenience: Online orientation allows board members to Well-informed, collaborative and efficient governance positively impacts complete their orientation at their own pace and on their schedule. all aspects of the club’s operation. It creates a more harmonious board This is especially valuable for busy professionals who may have limited and superior(54448) member experience. www.zafferanoamerica.com/boardroom 1-855-49LIGHT Sales@preferredlighting.net availability for in-person sessions.

2. Consistency: Online orientation ensures that all board members Advantages for private club general managers receive the same information, reducing the risk of information gaps or 1. Time savings: Conducting in-person orientations for each new misunderstandings arising from in-person orientations. board member can be time-consuming for the general manager. Online 3. Accessibility: Online materials are easily accessible from any orientation frees up their time for other critical management tasks. location with an internet connection, making it feasible for board members 2. Consistency: An online orientation ensures that every board who are geographically dispersed or who travel frequently. member receives the same information and training, leading to a more 4. Reference: Online orientation materials can serve as a valuable informed and cohesive board. reference for board members, allowing them to revisit important 3. Resource efficiency: Online orientations reduce the need for information whenever needed. printed materials, meeting room rentals, and travel expenses, leading to 5. Interactivity: Well-designed online orientations can incorporate cost savings for the club. interactive elements such as quizzes, videos, and simulations, enhancing 4. Improved communication: Online orientations can include clear engagement and knowledge retention. explanations of the club’s mission, values, and policies, leading to better 6. Scalability: Online orientations can accommodate new board alignment between the general manager and the board. members as they join the club, ensuring a standardized and efficient 5. Liabilities: Minimizes club and board members’ liabilities. onboarding process.

6. Collaborative governance: Creates a shared playbook and focuses • Cordless LED Lamps Multiple Colors 7. Flexibility: Online orientations can be updated easily to reflect on collaborative governance• between the volunteer board and paid changes in club policies, procedures, or industry regulations, ensuring management, leading to better synergy, improved decision-making and a • Rechargable • Ambiance that board members always have access to the most current information. more cohesive leadership approach.

Members can learn at their own speed, review materials as needed, and 7. Tracking and reporting: online platforms provide tracking • Dimmable • 17Many models engage with the content in a way that suits their individual preferences. and reporting features, allowing the general manager to monitor which 8. Enhanced board performance: Well-informed board members, board members have completed the orientation and when. This ensures • Sleek, elegant • Durable & long because of comprehensive online orientation, are better equipped toItalian design compliance and accountabilitylasting and can lead to continuous improvement in contribute meaningfully to club decisions, strategy development, oversight their understanding of governing principles.

• Replaceable and less micromanagement from board and committee members.• 3 - color battery Board members can use the resources to enhance their professionaltemperatures BoardRoom Institute’s onlinelithium technologyion for committee members development. and board of directors’ orientation benefits private clubs by providing a • 2200K-2700K9. Cost savings: Online education eliminates the need for travel convenient, consistent and efficient learning and onboarding process.

3000K This, in turn, helps the general manager save time, streamline resources expenses, venue rentals, printed materials, and other logistical costs associated with in-person training. This can result in significant cost and foster more knowledgeable committees and engaged boards that • Last setting savings for private clubs, allowing them to allocate resources more contribute effectively to the club’s success and sustainability. BR memory efficiently.

10. Access to expertise: Online platforms can bring in experts from various fields to deliver training. This allows private club boards and For more information about BoardRoom Institute committees to access a broader range of knowledge and perspectives, contact John Schultz, CEO at (704) 309-3015 or which can be particularly valuable for topics that require specialized Gordon Welch, COO at (918) 914-9050. expertise.

11. Scalability: Online education can easily be scaled to accommodate many participants. This is especially beneficial for clubs with a large membership base or those wanting consistent training across different

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Leadership: Position Power Versus Personal Power Leaders have two types of power: position power and personal power. What do I mean by that?

Position power is when you have earned a leadership position within an organization, been appointed as a board member or, perhaps, were assigned to an important task force.

You bring your experience, knowledge and expertise to the position, and you have the power to influence due to an authoritative position.

Personal power relates to leaders and individuals, irrespective of their position, who will command respect, loyalty and, yes, considerable influence when their titled power position goes away. CEOs retire, and board positions and important committees expire in time, but individuals who hone their personal power will still be viewed as important leaders, enjoying the respect and admiration of those they served.

We are all familiar with the gravitational pull of charismatic people. They exude stability, professionalism and positive energy even in the gravest of circumstances. They are so comfortable with themselves that they can focus their attention outwards, seeking input, making others feel important, validating suggestions and generously giving credit and praise to others. These are the leaders who instinctively leverage their personal power to inspire, motivate and influence others.

These are the leaders who most of us will follow anywhere.

What are the keys to developing personal power?

Personal power can help individuals reach their full potential. Leaders who rely solely on a formal position of authority are soon forgotten or, worse, dismissed as autocrats with little respect. Smart and savvy leaders work at cultivating their personal power and achieve long-standing success in future endeavors. How do you start on this journey?

Activate awareness Start by being aware of how you relate to others. Do you give honest eye contact and extend genuine respect to subordinates? Do you listen and acknowledge another’s input, concerns and project work?

Be aware of how important positive collaboration is in every situation. Identify ways to drive success and put a positive spin on managing issues. Be intentional in how you respond and invest in problem-solving so that others feel validated. Allow space for others to co-exist with their own beliefs and perspective, even if their opinions are radically different from your own.

Give thoughtful feedback, be confident and be consistent in driving success with compassionate guidance. Empower those around you, exhibit trust and monitor how others receive your verbal and non-verbal communications. Once a leader masters the art of adaptability of meeting each person where they 28

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are and leaves them feeling validated and heard, the leader’s personal power expands and shines.

Build engagement Right now, there are 10 million job openings in the United States. Over 47 million Americans voluntarily quit their jobs in 2021/2022. Many refer to the impact of the COVID-19 pandemic as the “Great Resignation.” I prefer the term “Great Upgrade.”

Not a day goes by that I don’t get a call from a client who is upset that a valued employee has been lured away with more money and benefits. Bear in mind that money is a short-term motivator. Still, fair compensation is the responsibility of every leader, along with authentic appreciation and support for an employee’s career goals and personal life.

We’ve all heard the saying, “People don’t leave companies, they leave bosses.” In today’s world, it is essential to build an internal culture that values work and personal life. A positive culture, great leadership, effective management and development opportunities build engagement.

True leaders create a positive vision that evokes pride in their team. Clarify job expectations and invest in training that builds your employees’ self-esteem, confidence and skills. Define your brand and be generous in giving praise for exceptional accomplishments. Share the limelight, act on ideas and make every employee feel like the work they do is valuable and important.

Leaders share their vision for success, and they walk the talk without taking all the credit. Reinforce teamwork and build a reward system that acknowledges hard work and demanding deadlines. Communicate freely, sit in occasionally on department meetings, initiate company outings, create an employee newsletter and explain the “why” behind tough decisions. When employees feel valued and understand that they play a crucial role in the bigger picture, their motivation builds and they are inspired to be their best.

Be authentic – Every. Single. Day. Take a minute and reflect on the qualities you admire in a charismatic leader. Flashy, shallow leaders who throw their egos around soon lose their luster. Charismatic leaders who stand the test of time with integrity and substance leave a legacy that shines as a model for future generations.

Once leaders lean into the positive awareness of their personal power, they adapt quickly to build the qualities that attract and inspire others. Compassion, warmth, integrity, honesty, emotional stability and excellent people skills are likely the attributes we use to define the personal power of a leader. Scientific studies suggest that leadership is 30 percent genetic and 70 percent learned. We challenge you to start learning. B R

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RONALD F. CICHY Dr. Ronald F. Cichy, O.M. is professor emeritus, Michigan State University

EXECUTIVE COMMITTEE

Silence. Seclusion. Solitude.

Meditation. Reflection. - Part II Editor’s note: Part I of this story appeared in the July/ August issue. The premise is that the five states of being described yield desired results that are more than doing. Doing is important. However, being produces highly desired and decidedly intended results.

Silence is the language of a higher being. “God Alone” is the message over the gate to the monastic area at the Abbey of Gethsemani. This gate separates the world from the monastic experiences. Silent your mind. Communication with the higher being.

When you pursue silence, you encounter gratitude. You realize and acknowledge the things and people in your circle of gratitude. The Grand Silence at the monastery begins after Compline, the evening divine office. It lasts until Vigils at 3:15 a.m. No talking. Substituting silence for sounds.

Seclusion is isolation. It is reminiscent of the desert where the early monastics, the Desert Mothers and Fathers, lived away from others. Seclusion is an oasis of peace.

Solitude is peace with being with yourself. Alone. The word monk comes from the Latin monachos, meaning solitary. The Desert Mothers and Fathers abandoned mainstream society to live as cenobites with other monks. Or they may have chosen to live as eremites (hermits) by themselves.

They chose to be away from mainstream society. Alone.

Emptiness. Make room for being.

Meditation is the moment to abide. The practice of meditation can be a lifelong struggle. In meditation, you try to lift thoughts to the threshold. Breathe in. Breathe out. Meditation is about relaxing and allowing your existence to be without distraction.

Begin a meditation practice by starting with just three minutes per day. Persevere. Meditate every day for three minutes. Gradually increase the time. Breathe in. Breathe out. Be in tune with your body and the universe.

As distractions keep coming into your mind, acknowledge them and let them float away. Meditation is wordless. It is listening rather than speaking. Listening for and listening to.

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Reflection begins with knowing yourself. What features do others see in you? Do you need to change the tape playing in your head? Acedia is spiritual or mental sloth. Apathy. Deflation of the soul. Reflection can lead to meditation, which can lead to prayer.

Reflection breaks acedia. Beat back the “Noonday Devil.”

Get moving and persevere. Perseverance sometimes consists of remaining without doing anything. But ultimately, little matters. What matters is to endure and be.

Explore and select what monastic practices you want to be. Honest thinking is a big part of perseverance and reflection. When something happens, look at it with an open mind.

Without prejudice. It is a pitfall to be opinionated, biased and stubborn. Examine myself. Mindfulness of who you are and who you desire to become.

Private club leaders, volunteer and paid, can use silence to lead to gratitude. Appreciation of what is being. Solitude is making room for being. Seclusion reduces and diminishes.

Seclusion opens the door to peace. Meditation is a practice that never ceases. Reflection starts with knowing yourself.

Knowledge leads to prayer.

These five states of being are transformative. They advance the being and move it along. The five states of being propel or gently move the individual toward the desired outcome. Include all five in the practice of being. They work together and derive synergy because of the collaboration.

Include self and others (member-owners, talent).

Be aware that most people who follow this practice experience improvements while at work. So, too, they feel changed for the better in relationships away from work. Give this a try.

Determine your outcomes. Experience your results. Compare to determine where you can make improvements. Keep trying as improvement over time is realized. Be. Become.

Part I of this story appeared in the July/August issue. In reality, the story will continue through eternity. BR

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EXECUTIVE COMMITTEE

Choosing the Right “Doctor” What does choosing a doctor have to do with private clubs?

More than you might think.

Once upon a time, a brilliant brain surgeon, Dr. Smith, popular in the community, an accomplished athlete and all-around great person, needed a knee replacement. So Doc Smith appealed to fellow medical professionals who assembled a list of three finalists to be considered for the procedure.

All three were well-known, renowned practitioners, and one was even a friend of Doc Smith’s. With the help of the committee of fellow medical professionals, the selection process began.

Immediately, two of the three under consideration leaped out. They had completed the procedure Doc Smith needed thousands of times. The third, Doc’s friend, was an extremely well-regarded primary care physician (formerly known as a general practitioner) who had positively affected the lives of thousands of patients. Many were close friends of Dr. Smith’s. Never, however, had the PCP replaced a knee, but the PCP’s fees were a bit more reasonable than the specialists’ fees.

Of course, we all know who gets picked for the procedure that will affect Doc Smith’s life for many years. It’s all about experience and predicted outcomes rather than relationships and cost – right? Who does the committee choose?

Let’s apply this same process to select a professional consultant for the good doctor’s private club. The club makes certain to include plenty of “similarly skilled” individuals on the committee because they will make a more informed decision and be there to “help” the chosen consultant.

The committee, or board, is assembled, the goals are discussed and agreed upon, the candidates are carefully selected, interviewed and the field is narrowed to the final three.

Among the final three … accountants, website developers, survey specialists, architects, interior designers, financial consultants, membership and governance consultants – take your pick … two are nationally known practitioners skilled and experienced in successfully working with hundreds if not thousands of private clubs.

They have tremendous reputations and impeccable references. The third, an acquaintance of some of the committee/board members, is equally skilled in their field.

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However, the person has little or NO experience with private clubs but is cheaper. The selection process is lengthy, contentious and potentially divisive to the group. Who does the group choose?

Unfortunately, the result is not as predictable as it was with Doc Smith’s knee replacement. For some reason, clubs are likely to choose their consultants based on personal or extra-club relationships and price. We all know that especially in today’s inflationary climate, cost is important, but how important is it when spread over the life of whatever project is being considered?

What is really important when choosing a consultant? Skill and talent, of course. But relatable experience and overwhelming success with similar clubs and projects are key.

When choosing consultants for private clubs, committee or board members must make the difficult choice to separate themselves from their personal relationships or recuse themselves from the process. The success of the project and of the club itself depends on committee/board members choosing the right consultant based on skill and experience.

Committee/board members must put the club first. The committee, no matter its makeup, cannot replace the private club experience with its “help” and oversight.

Sadly, many clubs do not follow this seemingly basic decision-making process. There are too many stories of failed initiatives performed by members or members’ friends that ultimately require a reboot. This undermines the credibility of the board and makes getting things accomplished for the future more difficult.

The interesting and noticeable exception to this practice comes when the club is choosing its golf course architect or irrigation consultant. In these cases, personal relationships and cost are often not even a consideration. The decision as to who will prepare the club’s “most important asset” for the future is based on the consultant’s experience with similar courses.

Shouldn’t this be the case when choosing all club consultants? Are not all of the club’s assets its “most important?”

Why when it comes to “non-golf course” projects do clubs often lack the resources to do it right but always manage to have the resources to do it twice? B R

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LARRY HIRSH

EXECUTIVE COMMITTEE

Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www.golfprop.com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia. He blogs on a variety of club and appraisal issues at http://blog.golfprop.com. He is the author of “The Culture of Golf - Isn’t It Just a Game?” available at: https://golfprop.com/the-culture-of-golf/.

Who Are the Club’s Most Important Members?

Golf Property Analysts is privileged to assist a club in the Midwestern US with its long-range planning process.

Unlike some clubs in today’s environment, the COVID surge has NOT solved all the club’s problems, but like many clubs, communications between the club and its membership are lacking.

The club needs capital improvements to address deferred maintenance and possible enhancements. An insufficient number of members and a price-sensitive market with limited depth creates a challenge.

Among the topics that came up during a recent discussion was the issue of membership development, how to engage (and retain) the existing membership and the best ways to grow the club and reinvest in the facilities.

Many clubs have members who visit the club frequently, sometimes evolve into club leaders and use the facilities the most. For some, the club is the focal point of their non-professional lives.

At my club, we call them “superusers.” While each of these superusers might play more than 100 rounds of golf per year and often become synonymous with the club itself, I’ve learned over the years, like many other things, that they are not the key to the club’s success.

With most clubs averaging about 60-70 rounds per member per year, it should be no surprise that thriving clubs not only make their superusers happy, but also those members who pay the same dues but may only play golf or use other facilities 8-12 times per year.

They are the (obvious) key to financial success. Superusers are happy because they have access. The more casual members contribute the same amount to the dues revenue line and want to be treated well when they visit. There are lots of them. Their opinions matter – a lot.

Unfortunately, these casual members, who often aren’t as well-known or maybe as popular with the “in-crowd,” are often taken for granted. However, they are the ones who begin to analyze the membership costs, especially when economic times become challenging.

The club can fall on the same hard times that are not too far behind us and still in the rearview mirror. Club leadership needs to effectively and sincerely communicate with these casual members.

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Transparency, as I wrote about a year ago, is a big factor, and these casual users need to feel welcome and heard. The “3 Cs” of communication, consistency and culture are critical to happy members and club success. The club we’re working with is about to embark on a focus group feedback program.

Hopefully, the casual members will participate. Hopefully, the board will listen.

Are clubs now “safe” from the post-recession blues?

A friend in the membership consulting business has said his business has waned a bit, suggesting that some clubs don’t think they need to continue membership development efforts.

Whether or not clubs are full, they should always be in the business of membership development – and retention. A lot of clubs are embarking on costly master plans to enhance and improve facilities to compete with other clubs. Many of these projects come with assessments, dues increases or the establishment of capital dues not previously seen. If the casual users bail, the club is in a pickle.

In most cases, the superusers are willing to pay for it because the club is a big part of their daily lives. Casual users may not want to pay unless they are engaged, made to feel important and welcome and the club leadership listens sincerely to their views and comments.

The consultant conducting the focus groups must be independent and unafraid to tell the board truths it may not want to hear.

If the club has incurred substantial debt, it can create a problem. That said, sometimes debt is necessary to turn the club around. It’s not only a balancing act as to how much debt is manageable and for what, but it’s also critical to get members to buy into the reinvestment in the club, and casual users can often be the key.

Let them be heard. Listen to what they say and make them feel they are as much a part of the club as the familiar faces.

They could be the difference between a thriving future and the club’s demise. B R

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LEON “LEE” HOKE

EXECUTIVE COMMITTEE

Lee Hoke, PhD, is a full professor of economics, Sykes College of Business, University of Tampa, and three-time past president of Buckhorn Springs Golf and Country Club. He may be reached at Lhoke@ UT.EDU or (813) 766-2860.

Operationalizing Your Strategic Plan The board’s primary function is to create the mission and goals that set the club’s direction and should guide all decision-making for the general manager, the staff and committee members.

Ironically, after months of gathering data internally and externally and hours of retreat time discussing the strengths, weaknesses, opportunities and threats to the club, the resulting document ends up in a binder and sits on a shelf in the general manager’s office.

This failure to complete and implement the strategic plan results in many of the dysfunctions often referred to in the pages of BoardRoom. It leaves the door open to board members who micromanage and pursue personal agendas. The club can avoid this if it fully implements the strategic planning process.

When the club completes its mission and goals, the work of the general manager and department heads begins. The action plans and objectives are the responsibility of the department heads in a process overseen by the general manager.

These objectives should align with and support one or more of the goals established by the board. Hard creative work requires the staff to self-reflect on how they can use their time and talents to create and achieve timelined, measurable objectives that support the club’s goals. (One caveat: Experience shows that some department heads will resign as they realize their skills and interests do not match the job requirements.)

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Once the work of all the departments is complete, the plans can be presented and documented for approval by the board. With the advice and consent of the board, the objectives are ready for implementation. Quarterly updates by all departments with a checklist of strategies implemented and objectives achieved ensure accountability of all departments and the general manager. Most importantly, the board directs the club and regularly assesses the work of the general manager and staff.

The process avoids personal agendas since any individual board member would have to receive the approval of the board to implement a pet project or objective. Even then, approval would only be granted if the objective was consistent with the club’s goals. Likewise, a board member who wanted to change an existing action plan or introduce a new one would have to seek board approval.

Finally, this documentation of the year’s work by the general manager and staff constitutes the basis for performance evaluations, bonuses and raises for the general manager and department heads. All of which are framed in the context of and aligned with the club’s mission and goals. The president is ready to write his final report to the membership outlining what was promised and what was delivered, building member confidence in the board and forming the basis of trust.

As the new president and board members begin their term, the cycle begins again. B R

RICK LADENDORF

CRAIG MARSHALL

EXECUTIVE COMMITTEE

The Mindful Mindset Three Case Studies on Collaborative Governance Mindful leaders understand the importance of creating an exceptional member experience, which depends on cohesive “collaborative governance” between the board and the management team.

But many things can get in the way: egos, poor communication, personal agendas, unclear vision and priorities, assumptions and “unsaids,” to name a few.

We’ve worked with hundreds of clubs and have witnessed the same ongoing challenges: removing pains, solving problems and upgrading processes.

Based on our experience and surveys, we have identified three key factors that consistently contribute to solving these issues and establishing effective collaborative governance across successful clubs: 1. Commitment to a shared vision 2. Open and honest dialogue 3. Inspired leadership.

Below are three case studies of how general managers addressed long-standing challenges and took their cultures and relationships with their boards to another level.

GARY CARON, GENERAL MANAGER DEERWOOD COUNTRY CLUB, JACKSONVILLE, FL Situation: Removing a pain: Becoming the general manager at Deerwood Country Club was a dream come true. But my excitement quickly turned to despair as I started just a week before the COVID shutdown. I inherited homeowner lawsuits and discovered a member conducting illegal activities on-site. The stress and complexity of a struggling club overwhelmed me, pushing my team into survival mode.

Doubts gnawed at me, questioning my ability to handle it all. Yet, I refused to give in. Seeking guidance and support, I fought to keep the club afloat. We adapted, embracing virtual events and socially distanced activities. Through perseverance and resilience, we weathered the storm. Looking back, those painful challenges transformed me. They tested my limits, forcing personal and professional growth. Today, Deerwood Country Club thrives as a testament to our unwavering dedication.

Actions: 1. Got certified as a certified mindful professional 2. Engaged an executive coach 38

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3. Hosted an onsite mindfulness workshop for my management team 4. Joined my management team in a multi-week online leadership training program 5. Became a member of club managers’ mastermind group.

Results: If I had not participated in the Mindful “U” programs, I honestly don’t think I would still be in this line of work.

On a personal level, I’m not sure my wife, to whom I’ve been married for 25 years, would have put up with me. “The Monk & the Mastermind” showed me a new way to declutter my mind and truly listen to my team (and my wife).

I also learned to work more effectively with my board of directors, setting aside my ego and addressing the real problems at hand. My relationship with the board has grown, and there’s a mutual respect where I feel my voice is heard. The board has become more compassionate and understanding.

Surrounding myself with like-minded individuals who embrace this culture has significantly improved my quality of life.

As a result, my work and home life have shifted towards focusing on life itself rather than being consumed by work problems.

I’ve worked at two clubs that have implemented Mindful “U” training, and although it may not suit everyone, it deserves recognition as the best approach to unlock our true potential and get on the same “mindful page,” paving the way for a direct path forward. A clear mind leads to successful decision-making, benefiting everyone involved and creating a culture that ensures a sustainable future. – Gary Caron ROB PODLEY, GENERAL MANAGER COLONIAL COUNTRY CLUB, FORT MYERS, FL Situation: Solving problems: Throughout a span of decades, I undertook a transformative journey in my pursuit of becoming a more proficient leader. The Troon portion of that journey commenced when I began my tenure as the clubhouse manager at Colonial Country Club 12 years ago and continued as I undertook roles of increasing responsibility at other properties.

Reflecting back, there was a time at Colonial when I could have been more considerate and understanding. However, through personal growth and development, I now embody a calmer and more respectful leadership style.

➤

Becoming a certified mindful professional at The Club at the Dunes (another Troon property) fueled my growth. I introduced Mindful “U” to help break down silos and unify our vision. I returned to Colonial as the general manager with a new mindset at a premier Troon Prive’ property, where I am driven to leave a lasting legacy and to foster a culture of respect and excellence. With the board’s support, we made investing in our team’s long-term sustainability a priority.

Actions: 1. Underwent the process of getting certified as one of America’s Healthiest Clubs 2. Got certified as a certified mindful professional 3. Hosted an onsite mindfulness workshop for my management team 4. Enrolled my management team in a multi-week online leadership training program 5. Became a member of a club managers’ mastermind group.

Results: Mindfulness has transformed my professional, cultural and personal life. It has deepened my self-awareness, uncovering strengths and areas for growth. This heightened understanding has improved my decision-making and personal development.

My emotional intelligence has flourished, fostering empathy and stronger relationships. My more mindful communication has become a cornerstone of my leadership, using active listening to create better connections.

Lastly, a growth mindset inspired by the team’s buy-in to mindfulness is driving greater learning, adaptability, and a more solutions-oriented approach within our organization.

– Rob Podley PATRICK CASEY, GENERAL MANAGER EL NIGUEL COUNTRY CLUB, LAGUNA NIGUEL, CA Situation: Improving processes: I inherited a cohesive team from Kimberly Wood, a 10-year GM, and started regular team-building meetings to foster unity. We created an employee culture report to educate, recognize and appreciate our staff.

Inspired by our assistant general manager, Lori LeBard, who became a certified mindful professional, I enrolled in the same program. The board has been supportive and appreciative of our team’s development.

Overall, we’ve grown closer, celebrated achievements, and invested in enhancing our skills. Most importantly, we have fun, creating a vibe that is warm and welcoming to all. I’m grateful for the foundation laid by Kimberly and excited for the future as we continue to nurture our amazing team.

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Actions: 1. Created an employee culture report 2. Hosted weekly upbeat team meetings 3. Assistant GM Lori LeBard became a certified mindful professional 4. Invited industry guest speakers to our weekly employee meetings 5. Continue to read the “Power of Positivity” as a team to help sharpen our saw 6. Became a member of a club managers’ mastermind group.

Results: Investing in our staff has proven to be a strategic and rewarding decision. By providing professional development opportunities, we have empowered our employees to enhance their skills and knowledge, resulting in increased productivity and efficiency. Additionally, investing in staff morale and well-being has fostered a positive work environment, leading to higher employee satisfaction and reduced turnover rates.

Our investment has also cultivated a culture of innovation, as our skilled and motivated workforce consistently generates creative solutions and approaches to challenges. Ultimately, investing in our staff has not only improved individual performance but has also boosted overall organizational success, making it a valuable and impactful investment.

– Patrick Casey Taking a “mindful” approach leads to employee satisfaction and productivity and enhanced team success via a spirit of collaborative governance. It takes time, but getting all stakeholders on the same page creates a safe and progressive environment with more open and honest (thus creative) dialogue.

Building an inspired management team that executes the vision and mission can sound like a fantasy. Yet you can accomplish this with the right leadership, processes, training and tools.

Such a healthy and sustainable culture begins with honest survey feedback and an ongoing training and support program. Of course, you must get buy-in from your GM and your incoming and current president and board and committee members.

Once you have your collaborative culture, you can begin the hiring and onboarding program to attract and inspire prospects who align with the values and vision all service levels reflect. B R

COLIN READ

EXECUTIVE COMMITTEE

Colin Read is CEO and co-founder of Whoosh, a modern club operations software company recently recognized as one of the most innovative technologies in the club industry. Colin can be reached at hello@whoosh.io.

Modernizing the Committee Experience “Do your club’s committees reflect the overall culture and future of your club?”

During a presentation at the National Club Association’s National Club Conference last year, one of the speakers posed that question to the audience.

I thought about my home club and other clubs I have been a part of and realized they do not – and that is a problem.

In general, the demographic of my home club includes young, working families with kids, older retirees and everything in between. It’s a good mix.

But many committees overwhelmingly skew toward older, male retirees – this is true with many clubs I have visited.

Yet club committees are crucial to operations and the overall club experience for members.

All clubs will benefit from thinking more holistically about their committee representation and modernizing their committees to allow for more diverse participation.

Which begs the question: What prevents club committees from reflecting the authentic culture of a club? How can clubs improve their committee composition and effectiveness?

Rethink your restrictions: Most clubs restrict what type of member categories can join a committee. For example, in many clubs, only proprietary members are allowed to join boards and/or committees, and proprietary members often have an age minimum of 40.

A committee composed of only 40-plus-year-old members creates a dynamic that favors the “old guard” and their wants and needs. However, they don’t experience the club the way younger members or families do. They often fall into the trap of protecting their financial interests (i.e., no dues increases or assessments) and may be less concerned about the experiences of other member demographics.

Because of these outdated age restrictions, committees are not a true cross-section of membership–including, and perhaps especially, junior or intermediate members. These membership types make up the next generation of your club’s leadership, and odds are they are some of the most active users of club facilities, especially if they have young families.

You can incorporate these non-proprietary members into the committee process in creative ways. Junior and inter-

mediate members should always have a seat at the table because they are your club’s future. They should be allowed to attend and observe meetings and serve as liaisons. They do not have to get a vote, but they should get a voice.

Ask yourself: What’s the average age in your club’s committees? Who represents junior and intermediate members?

Who is the voice and advocate for your junior programs?

Who is representing the voice of families? How can your club benefit from hearing from these groups?

Refresh your perspective: Many committees solicit participants via a one-time annual volunteer sign-up. It means members have one–and only one–opportunity to join a committee each year. Often, committees are composed of the same names and faces year after year. It means clubs are not refreshing their perspective and risk having the same agenda pushed forward.

When a member volunteers for a committee, it is the ultimate show of buy-in and respect. Your member says, “I love this club so much I’m willing to spend my time making it better.” Clubs should offer this opportunity throughout the year so you are consistently recruiting new members and fresh ideas. Hearing from a varied group throughout the year will help your club better understand issues that affect most members, not the myopic perspective of the same committee members serving repeatedly.

At a minimum, clubs need to return the sign of respect.

Even if a member is not selected for the committee, acknowledge and thank them for their application. I have heard too many stories of people who volunteered for a committee and did not receive a response or acknowledgment from the club or committee chair.

In addition, many fresh, valuable ideas come from staff.

Club employees are your boots on the ground. They have their fingers on the pulse of daily operations and see members in all facets of your club. Your staff holds invaluable information and ideas about what your club can do better.

Ask yourself: Could you offer committee sign-ups throughout the year? Are you acknowledging everyone who applies? Is your staff represented on committees? What new perspectives could they offer your committees if given the opportunity?

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Improve your committee meetings: Many committees require in-person meetings hosted on-site. It is another way clubs may be inadvertently skewing the demographics of committee members to an older, retired crowd. Having committee meetings during a weekday afternoon on-site (typically outside of a city center) means people who work (likely in that city center) cannot attend. One easy, low-cost way to modernize your committees is to offer virtual meetings. With the boom in online conferencing tools, clubs can gain more diverse member participation through such platforms as Zoom, Google Meet and Microsoft Teams.

Ask yourself: Could your committee meetings benefit from being virtual? What new virtual technologies would work for your club? Who is responsible for your club’s technology?

Create transparency around your committees: It’s important to remember that committees serve your members.

Yet too often, members are not clear on committee charters, jurisdiction, priorities, initiatives or accomplishments. When committee meeting minutes are recorded, they may be relayed to members in high-level bullet points but are often buried in quarterly messages from the club president. While many clubs use an “annual member survey,” they should solicit feedback from members throughout the year as conversations or issues happen in real time. Then you must communicate to your members that you have acknowledged and/or addressed their concerns in a transparent and timely manner.

Ask yourself: When do your committees receive feedback from your members? What is that feedback loop, and how can it be improved?

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Create a tech committee: Another way to modernize the committee experience is to create a committee devoted to improving your club’s technology. Without a dedicated committee, many clubs have found themselves struggling with outdated software that fails to keep up with the evolving needs of staff and members. The increase in cloud-based systems enables clubs to create a more convenient member experience beyond the club. And, perhaps most importantly, new technology can save your staff hours per week so they can focus on more important things–like your members.

Ask yourself: Which committee discusses and decides about club technology, such as your member app, club website and staff tools? Which committees could benefit from better quantitative data? Does your club have a tech committee? If so, is that committee represented by “digital natives” and “digital immigrants”? (Because your club has a wide range of members with and without tech comfortability, any technology your club adopts must be efficient and intuitive and make membership easier for everyone.)

Your members and staff want a voice in your club, and they should have one for you to continue building a club they want to be a part of. Assessing your current committee makeup and policies and actively working to modernize your committees allows for a more varied cross-section of your membership to share in that voice and reflect your club’s authentic culture. B R

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BRAD D. STEELE

EXECUTIVE COMMITTEE

Brad D. Steele, JD, started Private Club Consultants to provide in-depth legal and operational answers for America’s top private clubs. For more information about PCC, email Brad at steele@privateclubconsultants.net, call/text him at (703) 395-5463 or connect with him at www.linkedin.com/in/BradSteelePCC.

Does Your Board Member Orientation Need a Refresh?

One of the most important aspects of growth at a club is the inclusion of new blood on the board of directors.

New board members bring fresh eyes to the club’s operations and can add a jolt of life to the club, but it is imperative that they first become informed on the basics of what a private club is before they can lead it. In most clubs, this happens during a new board member orientation.

Traditionally, this orientation focuses on board duties and responsibilities as well as providing a brief discussion of the club’s bylaws. Unfortunately, this type of orientation program does not go into what it really means to be a director of a private club.

In short, a normal board orientation often needs to cover what makes private clubs different than any other business entity. There is nothing wrong with a review of duties, responsibilities and the bylaws, but there must be more for those new members to truly understand the role they are to play.

In any board orientation, there must first be a tutorial on what it means to be truly private. When a member joins the board, they will look at the club’s finances and immediately see an opportunity to increase revenue.

As such, they have little understanding of the 15 percent rule and will push for generating greater revenue – usually through nonmember events. They are often surprised and confused when told that this can violate the club’s tax-exempt status. Therefore, this aspect of club operations should be front and center in any board orientation program.

A final point to include in your board orientation is a discussion of the responsibilities of the club’s professional staff. Many new board members assume they are now charged with running the club. While board members are absolutely in charge of the club, the top private clubs in the country are run by their senior staff and managers. Indeed, most general managers have a wealth of knowledge – from their own experiences and from the education offered by professional development organizations – that ensures the club is being run to the best of its ability.

Yes, the board should remove underperforming staff, but it should not focus on running the day-to-day operations.

Reminding new board members of this fact in the board orientation can help lay the foundation for a successful board tenure rather than one that causes strife for the club’s staff, its members and the rest of the board.

Your board orientation should educate new members on how to protect the legal and financial benefits associated with being private and tax-exempt. It also should help ensure they can leave their mark during their tenure on the board with a strong working relationship with the club’s professional staff. To do all of that, it might just be time to refresh your board orientation program.

They will want to grow the club’s membership rolls or its catering, banquet or outing income by advertising to the general public or holding more public events. Naturally, doing these things could violate the club’s private status.

As such, it is crucial to inform new members what it means to be private and what the benefits are – like being exempt from certain federal and state laws as well as being able to control the club’s internal operations without outside scrutiny.

This is a critical discussion to have and it is often never begun.

Secondly, new board members must be made aware of the club’s tax-exempt status, what it means and how to protect it. Regrettably, many members join the board without knowing that their club is tax-exempt.

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In most cases, members brought forward to serve on the board are sophisticated and experienced enough to know what it means to serve on a corporation’s board.

Unfortunately, they likely do not know what it means to serve on a private club’s board, usually a 501 (c)(7) board.

As such, your board orientation should educate new members on how to protect the legal and financial benefits associated with being private and tax-exempt. It also should help ensure they can leave their mark during their tenure on the board with a strong working relationship with the club’s professional staff. To do all of that, it might just be time to refresh your board orientation program. B R

ConcertGolf

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club is now debt-free, all of our ‘wish list’ capital “Our projects are being completed and we will never again have assessments. Members don’t want to be managers; they just want to enjoy the club. Frankly, this is the best thing that could have happened for our club.

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- Joe Donato, Club President

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KERRI RAWCLIFFE

GEOFFREY K. BENEDICT

FINANCE COMMITTEE

Preparing Private Clubs for the Post-Pandemic Economy The pandemic spurred tremendous change and growth in the private club industry; however, this growth is slowing given the current economy and the end of the pandemic.

The 2008 financial crisis brought new financial and membership challenges for clubs; however, the boost in membership interest during the pandemic is leading to a pivotal time for many clubs that will have a substantial impact on the future health and success of clubs. To avoid losing momentum when facing a potential economic downturn, clubs must take a proactive and bold approach.

The club must stop selling itself short. Offering discounted dues/fees or skipping annual dues increases are not the path to success. At minimum, the increases need to be in line with inflation so the club can fund operations while continuing to provide the same level of service.

For many years, the standard dues increase was three to five percent; however, with inflation, the pandemic, and bringing dues in line with the value being provided, many clubs are now in the ballpark of 12-15 percent increases.

Full-service country clubs are experiencing the most significant increases due to the large physical footprint and wide range of amenities, while yacht and city clubs are at the lower end of the range.

Each club has a unique membership and should stress test how much of an increase is tolerable. If the members feel invested in the club and are receiving valuable benefits, then typically an increase in this margin will not cause significant member attrition.

Your reinvestment strategy is crucial. In addition to funding operations, there must be separate planning and budgeting for capital improvements. Reinvestment is necessary for retention and growth, but it is essential to do so strategically, especially when debt is involved or in an economic downturn.

New members do not want to pay for a project that happened fifteen years ago and is no longer relevant to them.

Although a standard 20-year mortgage eases the immediate cash flow burden, the project may be outdated years before the related debt is paid off. It will be difficult to maintain and attract members if the club does not have the ability to reinvest in modern, expected amenities such as golf simulators, resort style pool areas, and more technology for connecting with members.

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Clubs may even want to consider implementing monthly capital dues rather than large assessments to cover capital planning. Members may be more receptive to a monthly payment that they can plan for rather than an unexpected assessment. For example, rather than being surprised with a $1,000 assessment at the end of the year, it may be more palatable to charge $85 of capital dues per month.

The club must re-prioritize the desired member experience. The quality of service provided is a major component of the perceived value of being a member, which helps members justify a dues increase.

Although dues are increasing, the club should consider maintaining current amenity pricing as part of the overall member experience. Labor and food and beverage costs have skyrocketed; however, if part of the desired membership experience includes having an upscale meal at the club for less than the five-star steakhouse nearby, raising menu prices to cover increased costs may not be the solution.

At clubs that are absorbing these costs increases, we are seeing the cost of goods sold percentage (not including labor) increase by around 10 percent on average. This increase is generally much higher for clubs with minimal outside banquets/events. In terms of labor increases, costs fluctuate between 12-20 percent compared to pre-pandemic in most departments.

Raising menu prices may be an immediate solution, and occasional increases are certainly warranted, but that decision ultimately depends on the desired member experience and ties into the age-old debate of if food and beverage is expected to be profitable.

Now is the time to make decisions that reinforce the club’s overall brand and learn from the past. Clubs have the opportunity to create a member experience that current members want to continue to invest in, and prospective members are excited to begin. Having a strong vision in place, with a Board and management that uphold it, will help clubs prosper despite economic downturns. B R Kerri Rawcliffe is a partner with PKF O’Connor Davies LLP. She can be reached at (401)709-3050 or via email:krawcliffe@pkfod.com.

Geoffrey K. Benedict is a partner with PKF O’Connor Davies LLP. He can be reached at (240)534-2802 or via email: gbenedict@pkfod.com.

TONI SHIBAYAMA Toni Shibayama is a broker/risk consultant for S&K Insurance in Southern California.

She has more than 15 years experience in risk management, job safety, workers’ compensation, wellness and HR consulting. Toni is also the author of “The Private Club General Manager’s Big Game Playbook.”She can be reached at toni@sk-insurance.com and by phone at (213)627-5204.

INSURANCE COMMITTEE

Being Leadership Driven Is All About Job Safety “Leadership driven” goes beyond showing interest in a safety initiative. It means that company leadership is actively educating and communicating.

This is critical because if employees don’t see a continued interest in this initiative, they will lose interest themselves.

They can easily interpret the lack of communication as a loss of interest at the leadership level.

Many business owners create a safety and wellness program but don’t give it the attention it needs, therefore it doesn’t create the desired objectives, such as reducing workers’ compensation costs. Any type of safety and wellness program is an investment in your employees and creates a caring and wellness-focused culture.

Employee well-being and safety protects your staff and saves you money. But when that culture doesn’t exist or is taken for granted, the results can impact the bottom line.

Your employees need to buy into it in order for it to work.

Your employees will not be on board with this new wellness and safety program unless they feel it is important to the leadership team. After all, if the boss doesn’t care, why should they? If your employees see that you are truly interested in the success of this project, most will follow suit.

This program should be run as an employee wellness and safety initiative. Great companies create and maintain safe work environments for, their employees. Well-run companies have fewer workers’ comp claims and recurring losses.

A company’s risk culture can be determined by assessing whether “doing the right thing” wins out over “doing whatever it costs.”

Managing risk must become a habit everyone in the company practices, from senior leaders and middle managers to supervisors and laborers.

When Paul O’Neill became CEO at Alcoa in 1987, he shocked investors by saying, “While we have a better safety record than most in our industry, I intend to make Alcoa the safest company in America.”.

The investors were confused because he didn’t say anything about profits. In this case, the CEO, supported by the management teams and boards of directors, created a risk culture that had a powerful influence on risk behaviors at all levels in the company.

But the term “leadership driven” reaches far beyond the boss. It means that all key VPs, managers and supervisors are on board and understand the initiative.

You need to let employees know that you will do what needs to be done to enforce what is written. Don’t be afraid to be the bad guy—it’s in their best interest and the best interests of the company. Treat an injured employee the way you would want to be treated if you were injured on the job.

1. Where did we fail in the past regarding health, wellness and safety? Did we not provide clear and concise procedures to be followed?

2. What are the best tools to apply and who can provide them?

3. What is the specific plan for their company and who is responsible for making that happen?

When an employee is injured, don’t berate the employee as being “lazy” or “stupid,” and certainly not in front of a room full of that person’s co-workers. As much as they are concerned for the well-being of their co-worker, they are also watching how you react. Did you get flustered, critical, angry, all of the above? Did you respond quickly with; onsite treatment, nurse triage, call 911??

Leadership is not a one-and-done thing; communication should be ongoing and thorough. Communicate successes with your team, including loss-free periods, new procedures that are working, positive feedback you get from safety vendors, and even changes in the way your insurance company classifies the business. Let your employees know that these wins are a result of their efforts.

You need to be aware that some supervisors mean well and have the greatest of intentions, but their psychological makeup is not that of a true leader. And you can often evaluate where they may be lacking by observing how they interact with employees. You may discover that those tasked with delivering that leadership might need education.

Only then will they be capable of taking safety commitment to the next level. B R

SEPTEMBER / OCTOBER 2023 | BOARDROOM

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Artificial Intelligence (AI) | BOARDROOM TECHNOLOGY FEATURE

by Dave White

Artificial Intelligence and Private Clubs What Does It Mean for the Future?

Artificial Intelligence (AI), as we’re discovering, focuses on creating systems capable of performing tasks that typically we, as humans, do!

It encompasses a wide range of techniques and technologies that enable machines to mimic cognitive functions such as learning, reasoning, problem-solving, perception and language understanding.

In this issue of BoardRoom, several of our writers, give us insight into the use of AI in the private club industry. It’s a glance into the present and future.

In fact, AI as we know it, doesn’t necessarily create new pieces of work... AI, today dependent on data and information available to it, recycles old pieces of work and stitches them together for our benefit.

However, its use is becoming more widespread as the private club industry finds ways to incorporate AI into various work functions. It’s bringing transformative changes to many industries and society. But what of the future?

Today, we already have many different types of AI including: 1. Natural Language Processing (NLP): AI models process and generate human language, enabling chatbots, language translation, sentiment analysis, and content generation.

One of the most popular of these is ChatGPT whereby chatbots – computer programs designed to simulate human conversation – are being used to help brainstorm ideas, automate writing, messages, websites etc. For example, ask a question and you’ll get the answer.

And ChatGPT is just one of several AI-powered writing programs that can assist in generating content, but they often cannot capture the nuances of a person’s writing style.

2. Computer Vision: AI can analyze and understand visual data, powering image recognition, object detection, facial recognition, and autonomous vehicles.

3. Reinforcement Learning: AI learns to make decisions by interacting with an environment, leading to applications 50

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in robotics, game playing (e.g., AlphaGo), entertainment and education.

4. Data Analytics: AI-driven data analysis provides insights, predictions and recommendations for businesses, finance, including suggesting trading strategies and handling risk assessment and more. Some AI -driven algorithms can make real-time investment decisions.

5. AI in Healthcare: AI assists in medical image analysis, drug discovery, personalized treatment, healthcare management and the future suggests AI will be able to predict disease outbreaks.

6. AI Sports Commentary: Voices ae being used to narrate and generating commentary for video clips etc.

7. Autonomous Systems: AI powers self-driving cars, drones etc., which can navigate, sense their surroundings and make split-second decisions as required., AI-powered manufacturing processes are growing, some of which we already see with auto manufacturing plants. AI use in agriculture is growing with systems that can monitor crops, predict weather patterns and optimize irrigation and fertilization to maximize yields, while using minimal resources.

8. Language translation: AI-powered translation tools effectively bridge language barriers.

9. AI Ethics and Bias: The ethical implications of AI, including fairness, transparency, and accountability, have become crucial concerns.

AI continues to evolve, with ongoing research and development aiming to expand its capabilities and applications across various industries. What can we expect? The fact is AI, in many respects, is still in its infancy. So, what does the future hold? BR

BOARDROOM TECHNOLOGY FEATURE | Artificial Intelligence (AI)

By Steve Mona

When Artificial Intelligence Comes to Private Clubs Societal trends have shaped the private club industry and driven its evolution for centuries. The most significant influence, perhaps, has been the impact of technology on club operations and the member experience over the last several decades.

Recently, I have been following the advent of artificial intelligence and reading about applications that could be relevant in private clubs. Based on that research, general managers and boards of directors should ask themselves how AI will impact private clubs. Note I did not say whether AI will have an impact but rather how much impact it will have and how soon.

With the advent of powerful AI technology like Deep Blue, AlphaGo, Open AI/ChatGPT and other new services, many tools already exist that can potentially transform elements of the private club experience. Equipment design, simulation and instruction have used AI for years. Industry research estimates that more than 15 million Americans play golf with GPS rangefinders and shottracking systems.

AI is revolutionizing employee development. With datadriven analysis of employee performance, employers can boost productivity by improving employees’ skills and knowledge. AI can also analyze workforce data to create tailored training based on career aspirations and capability gaps. This personalized approach boosts engagement levels of employees and helps employers attract and retain talent. Employers who embrace this technology will be more competitive than those using outdated methods.

AI allows clubs to use real-time data analysis to boost efficiency and accuracy. This harnessing of large amounts of data can help clubs continuously monitor member usage patterns, food and beverage choices and the like, leading to a richer, more personalized member experience.

Robotics is another area clubs should consider. Hospitality robots can bus tables, take dirty dishes to the dishwasher, deliver meals and more. My wife and I recently observed a robot in a local restaurant serving the booth next to ours with efficiency and a

bit of personality. While we chose a human server, the younger men and women in the adjoining booth seemed comfortable with a robotic server.

AI is also getting more sophisticated at diagnosing and providing real-time information about our physical health. What is your club doing to help members live healthier lives beyond fitness centers and exercise classes? AI can play a significant role in expanding health and wellness beyond today’s offerings.

But in the growing dialogue around AI, one possibility is not being discussed as much: How can private clubs use AI to accomplish things and help connect more fully at a human level?

Private clubs, after all, are superb in bringing together people with similar interests, and with AI, they may strengthen the human connection even further.

Periods of disruption and transition bring insight and learning.

They usually involve stripping away what is non-essential and reaffirming what is essential. That’s what appears to be happening.

By taking off our plate many of the ordinary tasks that have traditionally consumed our time and attention, we may discover what makes us uniquely human.

Private clubs are supremely qualified to lead the way in bringing people together in more significant ways than was thought possible even just a few years ago. Used appropriately, AI can be the tool that helps lead to more meaningful member (and human) experiences. B R Steve Mona is the director of governance and leadership for Club Benchmarking. While it was tempting, the author did not use ChatGPT to write this column. He may be reached at smona@clubbenchmarking.com

SEPTEMBER / OCTOBER 2023 | BOARDROOM

51

Artificial Intelligence (AI) | BOARDROOM TECHNOLOGY FEATURE

By Trevor Kluke

Future Considerations: AI and the Club Industry Artificial intelligence, in various forms, is everywhere. Driven by the mind-boggling amount of data we can collect, store and process, the “big data” age is fueling massive changes in industries such as banking, healthcare, entertainment and social media. IBM’s Watson supercomputer can process 500 gigabytes a second – the equivalent of 1 million books.

Even the computers and programs we use at our clubs would seem like science fiction only 50 years ago. While Siri and Amazon Alexa no longer impress us, the public release of ChatGPT in November 2022 seems to have put AI on everyone’s minds, ahead of trending topics such as self-driving cars, virtual reality and the metaverse.

When I recently spoke at a club leadership conference, I started the presentation by asking ChatGPT, “What do club managers want to know about club technology?” Luckily, ChatGPT listed a lot of topics that I was going to cover.

But it didn’t mention AI – which was a relief because I hadn’t prepared to speak about it. Then came the Q and A session. I was asked, “What are your predictions for how clubs will be able to use AI?” Unfortunately, I didn’t have a great answer. Since then, I’ve spoken with club industry, technology and security experts to understand how clubs should think about AI technology.

AI IS FUELED BY DATA

The first thing to remember is that AI uses large data sets and algorithms to recognize patterns. A club would need a large data set to take advantage of this technology, and the data must be in a format that the algorithms can understand.

Assess if your club is tracking enough data to make AI worthwhile. Depending on your club size and the amenities you offer, your club might not need AI. In comparison, if you are a hotel chain with 5,000 locations across the United States, your data set is massive, and AI will be better and faster at finding insights than a team of data analysts.

Clubs track financial data through accounting applications and spending data through the point of sale. But are you tracking how your members use the club? Are you taking all your reservations using digital tools? Are you tracking inventory and breaking down menu items to cost out every ingredient? You can use tools to 52

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help you accomplish these tasks without turning to algorithms.

But if you have a large enough data set to explore AI technology, I encourage you to take precautions.

PRIVACY AND SECURITY

Many of the AI tools that we have at our disposal are open platforms anyone can access. As a result, we do not know how the information you share will be used in the future and who will have access to your data. Organizations that use public AI tools could face security and privacy issues by sharing confidential data and information with these platforms.

This risk is something that we take seriously at Jonas Club Software, and we have a policy in place for using these tools.

We are not allowed to upload or share sensitive or confidential information, upload or share the code used to build our technology or upload copyrighted materials without permission. Your members – wealthy, influential and connected – are prime targets for bad actors. Be mindful of how your member data is shared.

Be sure to ask if your data will be kept private and what rights you have to your data once it is uploaded to an AI tool.

USEFUL AI TOOLS FOR CLUBS

This is not to say that you should avoid AI out of fear. Many tools have lower barriers to entry. You have probably seen or used a chatbot on a website or even spoken with a computer-generated customer service representative on the phone. Natural language processing (NLP) and AI are powering this technology, and the technology is improving at an exponential rate.

Clubs have started using chatbots on their club websites to field requests for membership info and event inquiries. The great thing is clubs can train a chatbot on what information it can provide, how it should answer questions and when it might need to connect a website visitor or caller with a person. Because you have oversight, a tool like this has a lot of upside.

You should strongly consider whether tasks such as communication with a prospective member are something you want a chatbot to handle versus someone who is an ambassador for your club. As this technology improves and becomes more ➤

BOARDROOM TECHNOLOGY FEATURE | Artificial Intelligence (AI)

By Susan Greene

Take Time to Learn Technology It Will Make Cents for the Future In the future, membership and communication technology will likely continue advancing to enhance engagement, connectivity and collaboration within clubs and communities. Here are some potential developments that could shape membership and communication technology: 1. AI-powered personalization: Artificial intelligence will play a significant role in tailoring communication and membership experiences.

AI algorithms can analyze individual preferences, behavior and data to deliver personalized content, recommendations and notifications. It can help clubs better understand their members’ needs and provide more relevant and engaging communication.

2. Virtual and augmented reality: Virtual reality and augmented reality technologies are poised to transform communication experiences.

VR can enable immersive virtual meetings, events and training sessions, allowing members to interact in a virtual environment regardless of their location. AR can enhance real-world experiences by overlaying digital information and interactive elements, improving communication and engagement in various contexts.

3. Chatbots and virtual assistants: Chatbots and virtual assistants are becoming increasingly sophisticated and can provide immediate support and information to members. Future advancements may include more natural language processing capabilities, improved context understanding and better integration with other systems. Chatbots and virtual assistants can handle routine inquiries, provide self-service options and enhance communication efficiency.

4. Collaboration platforms and project management tools: Future membership and communication technology may include advanced collaboration platforms and project management tools. These tools can

enable members to work together on shared projects. They can facilitate document sharing, streamline workflows and enhance communication within teams and committees.

5. Enhanced data analytics: Data analytics will continue to evolve, providing clubs with deeper insights into member behavior, preferences and engagement patterns. Advanced analytics can help identify trends, anticipate member needs and inform targeted communication strategies. Additionally, predictive analytics may enable organizations to forecast membership trends, predict attrition and tailor communication to improve retention.

6. Mobile apps and social media integration: Mobile applications will continue to be a crucial component of membership and communication technology. Future apps may offer more robust features, such as event registration, networking capabilities, personalized content delivery and integrated social media functionality. Social media platforms may also evolve to better cater to the needs of clubs and communities.

accepted outside of club life, a time will likely come when even members will be comfortable speaking with a chatbot.

If your membership director is not ready or willing to hand over your prospects to a chatbot, you can still use ChatGPT and other powerful AI tools to improve your club communications and promotions.

When you need a creative brainstorming partner, ChatGPT will help you come up with anything from email subject lines to fresh Thanksgiving event ideas. Image generators like DALL-E 2 and

Midjourney can also bring new visual elements to your newsletter graphics. Cutting-edge membership and event marketing leaders use these tools, so you should try them if you haven’t. BR

These are just a few potential advancements in membership and communication technology. As technology progresses, it’s important to consider ethical and privacy considerations, ensure inclusivity and adapt to specific needs and characteristics of each club or community. BR Susan Greene is the general manager/COO of Waterlefe Golf and River Club, MPOA. She is a member of CMAA’s corporate relations committee, past national president of PCMA, past regional education chair, licensed community association manager and real estate professional. She can be reached at gm@waterlefefl.co.

With new AI tools and breakthroughs happening almost weekly, momentum is not slowing down anytime soon. The club industry has undergone rapid technology adoption in the last three years. But before you feel pressure to explore and adopt AI, know that many tools are available to help your staff and members today. If you are not sure what they are, you can contact me or ask ChatGPT to see what AI recommends. Trevor Kluke is the marketing manager of Jonas Club Software. He can be reached via email: trevor.kluke@jonasclub.com SEPTEMBER / OCTOBER 2023 | BOARDROOM

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Artificial Intelligence (AI) | BOARDROOM TECHNOLOGY FEATURE

By Stephanie Castro

Artificial Intelligence is Here.

Is Your Club Ready?

What is AI! In recent years, artificial intelligence (AI) has rapidly graduated from the realm of fantasy to reality. Whereas previously the phrase may have conjured visions of a robot apocalypse, today’s real-world AI technology is more likely to be used by kids to cheat on their homework. Nevertheless, this diverse category of technology is rapidly advancing and will have many implications for all types of businesses, including private clubs.

The world is paying attention to AI thanks in large part to the popularity of ChatGPT (see sidebar), which currently has over 100 million users. But the term artificial intelligence is a broad one and has expanded to include many different types of technologies.

Generally, artificial intelligence refers to any technology that carries out complex skills that typically only reside in the human brain, such as logical reasoning, creativity, writing, learning and pattern recognition. The term frequently also applies to robotic tools that can carry out human-like tasks, though most robotic solutions today do not possess any artificial intelligence and are simply programmed.

The two categories of AI that have the biggest impact on business, including the private club industry, are generative AI and machine learning. While generative AI holds the potential to positively impact clubs today, clubs likely won’t have access to machine learning tools until further in the future.

Written communications to members: Club marketing and communications professionals can use ChatGPT or other text generating AI tools (see sidebar) to save time when creating communications to club members in the form of emails, articles, blog posts and letters. But before you think this AI can do your job for you, be wary of using these communications without a hefty dose of editing. Typically, the responses from the AI possess a similarly generic tone and may contain inaccurate or irrelevant information.

Generative AI: A Shortcut to Member Communications and Engagement: ChatGPT is an example of ‘generative AI,’ a subset of AI technology that can create various types of content, from text to images, audio, and even computer code. While browsing social media, you may also have seen images created by various AI image generators that work either by the user submitting a written description or by loading images for the AI to augment or edit in some way.

Following are some practical applications of generative AI that are available to clubs today.

Management policies and ideas: You can use text-based generative AI tools such as ChatGPT to spur creativity around the management of your club. You can ask it to write policies for the club or explain an issue you are having and ask for advice. The more specifics you provide, the better response you will get. Look for articles online about getting the most out of ChatGPT. (See ChatGPT sidebar)

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AI images for club marketing: Adding images can spice up club communications. Tools such as OpenAI’s DALL-E allow users to input text and receive an image back. For example, you may decide you need an image of “Santa building a gingerbread house on the beach” to promote an upcoming holiday event. This sort of image would be difficult or impossible to locate as a stock image but can be created quickly and inexpensively using the AI tool.

Integrated with your club technology: Generative AI can be incorporated into some club management technology systems to enhance the member experience. AI can also be utilized for quicker ways of reporting when integrated with the full database. Ask your club software provider about their capabilities of working with artificial intelligence tools.

Machine Learning: The Future of AI for Clubs?: Machine learning is a subset of AI where systems learn from data and

provide insights or predictions that may be difficult to discern through traditional reporting tools. While machine learning tools for clubs are not yet readily available, some KPI-based dashboards can offer similar benefits using today’s technology.

WORDS OF CAUTION

While AI can help clubs in a number of ways, there are some warnings regarding AI usage in clubs. Staff should be trained in the safe usage of AI, ensuring they do not submit personal or confidential information and fact-checking public communications to avoid legal ramifications from publishing false information. It is essential for clubs to have an AI policy outlining appropriate and responsible usage of these tools.

Despite the advantages AI brings, it should not be viewed as a replacement for people in the club industry. People will always be the heart and soul of clubs, and the best outcome is that AI can provide time savings, allowing staff to focus on delivering exceptional member experiences. B R Stephanie Castro is chief operating officer at Cobalt Software, the first club management software provider to offer artificial intelligence solutions for the private club industry.

Stephanie can be reached at stephanie@mycobaltsoftware.com.

Prompt to ChatGPT Riverdale Country Club is experiencing higher than usual volumes at the pool area. Because of this, the club would like to limit the number of guests that are allowed. We do not want to make members upset, but we need to do this to make sure the members all get fair access to the pool area. Can you please write a letter regarding this topic that we could send to our members?

ChatGPT’s Response [Your Club’s Letterhead] [Date] Dear Valued Members, We hope you’re having a wonderful summer at Riverdale Country Club. As we enjoy the pool area’s popularity, we want to ensure fair access for all members.

Due to higher than usual volumes, we must implement a Guest Access Limitation Policy starting from [Date]. To enhance your experience and safety, we will restrict the number of guests allowed on weekends and public holidays.

To ensure your guests’ entry, please use our online reservation system. Members will always have priority access, and we will strive to accommodate everyone within set capacity limits.

We apologize for any inconvenience caused and appreciate your understanding. Your support helps us create exceptional experiences for all members.

For more information or assistance, contact our Member Services team at [Contact Number] or [Email Address].

Thank you for being part of the Riverdale Country Club family. We look forward to making more cherished memories with you.

Warm regards, [Your Name] General Manager, Riverdale Country Club Things to note: I gave the AI some specifics about the club and our issue, but I did not specify what our guest limitation policy would be. The AI’s response suggested limiting the number of guests allowed on weekends and public holidays. In addition, it suggested that members register guests using the online reservation system.

This demonstrates the power of the AI tool to not only understand language but also demonstrate creativity. The club can now adjust the policy and communication as needed. If we wanted to explore further, we could reply with things like “make it longer/shorter,” “write less formally,” “add humor,” or other suggestions to get even more ideas. This took less than 60 seconds, saving us considerable time and effort in creating both our policy and the communication to members. – Stephanie Castro

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Artificial Intelligence (AI) | BOARDROOM TECHNOLOGY FEATURE

By Bonnie Knutson, JaeMin Cha and Seung Hyun Kim

I Can See It Now I can see it now.

It is the final round of the club’s annual four-day invitational.

The fairways are immaculate, and the greens are perfectly manicured and lightning-fast, with every pin placed in its most challenging position. The weather was favorable throughout the event, although the wind gusts tried to play tricks with the ball’s trajectory a few times. And this final round is a carbon copy of the clear skies and perfect temperatures.

The championship has been nip and tuck throughout the first three days, with today’s round being no different. The leaderboard has persistently zigged and zagged between last year’s champion and a new challenger.

So it all comes down to the 72nd hole, patterned after the famed 550-yard 18th at Pebble Beach, often called the most famous finishing hole in golf.

Both players hit monstrous shots off the tee, landing in perfect position for an iron onto the green. The first to hit his approach shot was Cory Champion. After he assessed the ball’s lie, checked his notes and conferred with his caddy, the champion selected the club he wanted and addressed the ball.

His swing was smooth, powerful and on the money; the ball landed softly on the green and rolled within two yards of the hole.

The crowd roared.

The challenger, Rory Robot, walked up to “Its” bag and quickly took out a club. “It” didn’t look at the lie, “It” didn’t look at any notes and “It” didn’t confer with any caddy because one wasn’t there. The bag rolled along with Rory, keeping the correct pace and an appropriate distance.

The challenger quickly moved to the ball, adjusted “Its” position, swung and put the club back in “Its” bag. Rory never even looked at the ball’s flight, where it landed, how it rolled and finally dropped into the hole. A moment of stunned silence preceded the crowd’s roar heard all over the course. The club has a new, albeit unusual, champion.

Is this story fiction? Today it is, but will it be tomorrow?

As preposterous as this may now sound, think back to the April 18 episode of “60 Minutes” and the segment on how Google’s AI lab in London got robots to play soccer. While this scientific advancement was mind-boggling enough, what is more astonishing is that humans did not program the robots to play the game.

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All they were “instructed” to do was to score goals.

“From there, the AI program went about devouring motion capture technology and testing different moves for about two weeks.” In other words, the robots taught themselves how to score the goal, i.e., how to win.

Think about TGL, the newly announced indoor golf league that will combine live golf and AI technology to launch an innovative fan experience similar to basketball, football and, yes, soccer.

The new league will launch in 2024. It will play a 15game season in prime TV time, complete with playoffs and a championship, in a “state-of-the-art short game complex … (offering)… a high-tech, high-energy fan experience with fans sitting greenside.” Move over Congressional, Oakmont and Los Angeles Country Club.

Welcome to AI technology and the potential new world of clubs.

In reality, our clubs are already using AI. We analyze member data sets to develop new ideas for club events, change menu and beverage offerings, adjust staffing levels, and even decide what we sell in our pro shops. Our revenue management teams examine demand patterns to adjust room rental rates and guest fees. Marketing teams use data to develop targeted marketing campaigns, personalized messages or other services. And, yes, we use ChatGPT to get the ball for our newsletter or social media postings.

But these applications are just the beginning of how AI will impact clubs. It is as if we are in kindergarten and will skip grades to get to graduate AI school. It may seem insurmountable, given that AI’s potential seems unlimited.

When I started to write this article, I Googled Definition of Artificial Intelligence for fun and got 5.7 billion hits. In its simplest form, AI combines robust data sets with computer science to help solve problems. To get a fresh perspective on how and where clubs might use AI, I look outside the club industry. For example …

What may have started as funny little round robots to clean floors and cut lawns has morphed into self-driving agricultural “farmbots” that use lasers to kill more than 100,000 weeds each hour. It is all accomplished without harmful pesticides to humans, plants or the soil.

Can you see the possibility for your courses, lawns and landscaping? Are they in your groundskeeper’s future? Wouldn’t

your groundskeeper like to have AI data from sensors embedded in club equipment to monitor performance, predict maintenance and automatically initiate the ordering of needed materials and repairs, thus reducing downtime?

Wouldn’t your clubhouse staff like to have “smart shelving” in the club’s storage areas, from pantries to cold storage in the kitchens to office supplies in the business office?

These AI-enabled shelving units sense the weight of every item and can notify you when you are running low or even automatically order more for you. Not only does it help keep track of inventory, but it can help reduce waste, manage costs and provide additional insights into members’ purchase and use patterns, leading to new opportunities to enhance their club experiences.

Will the new staff uniforms you order have microchips embedded in shirts, shoes or hats? With longevity trends and the skyrocketing cost of health insurance, interest among businesses to integrate wearable AI into employees’ wellness programs, task efficiency and performance is growing.

One company used AI armbands to track employees’ movements during several tasks, identifying completion time, process and fatigue. From the data, management discovered when employees were most alert and productive, allowing them to design new procedures, processes and more flexible work schedules.

Can AI-powered security systems be a part of your next capital improvement plan? CLEAR, the facial recognition technology, is used at airports and sports venues such as Oracle Park in San Francisco and Yankee Stadium in New York.

Some stadiums even have CLEAR concession stands, allowing guests to use biometrics to purchase food and drinks without pulling out cash or signing a credit card. Does this mean members will soon be able to say goodbye to chits?

Perhaps autonomous golf carts or a redesign of your parking areas to incorporate charging stations for the growing number of electric vehicles are in your club’s AI future. Maybe robotics will be doing mundane and repetitive tasks such as washing dishes, folding napkins, and even washing the floors in locker rooms or fitness centers.

How can AI become an indispensable tool in your club’s training programs? As mentioned in Forbes, “We could use AI-powered gamification to create an interactive, immersive experience by transforming work-related content into adaptive learning experiences.

“Chatbots or learning scenarios can be tailored to a learner’s experience level, career level and competency to provide real-time, intelligent feedback. More importantly, the conversations between

learners and chatbots can provide companies with useful data that can be used to gauge their employees’ needs and competencies.”

This sounds like a winner to me.

The speed at which information doubles is getting faster and faster and is now between one and two years. What college freshmen learn is out of date by the time they are juniors. The information you based your club’s strategies on in 2021 is out of date today. We need new and more efficient tools to collect, understand and manage information. Those tools are embedded in AI. But it is not about technology alone. It is how you use that technology to unleash innovation to ensure that your club thrives, not just survives. AI-powered systems can help personalize member services, customize event planning, target communication, and ensure members feel valued and engaged. It can also help you analyze vast amounts of data to optimize club operations and enhance security. By embracing AI in your club’s future, you will unlock innovative strategies to enhance the club experience for employees and staff.

Your bottom line will thank you.

PS: If Rory Robot is to play in a future invitational, you better plan for more practice rounds. “It” may need two weeks to test different moves to sink the ball … and win. B R Bonnie J. Knutson, PhD, 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 email: drbonnie@msu.edu JaeMin Cha, PhD, is an associate professor in the School of Hospitality Business, Broad College of Business, Michigan State University. Her research and publications cover health, well-being, experiential management, sustainability, and organizational leadership that are applied to the hospitality industry. chajaemi@broad.msu.edu Seung Hyun ”James” Kim, PhD, is an associate professor in the School of Hospitality Business, Broad College of Business, Michigan State University, where he teaches hospitality business analytics. He specializes in hospitality marketing, data analytics and research methods. kimseung@broad.msu.edu

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BoardRoom Technology Feature Technology and the Private Club Industry What Can We Expect?

Technology is reshaping and significantly impacting the private club industry in profound ways, impacting the member experience and offering innovative avenues for clubs to cater to their discerning clientele. And change is becoming even more prevalent.

1. Enhanced Member Engagement: Mobile apps and online platforms have become indispensable tools for private clubs.

Members can now easily book reservations, access event schedules, make payments, and communicate with club staff through digital interfaces, often powered by artificial intelligence. This engagement not only gives a club’s management member feedback quickly, it also streamlines the member experience, making it more efficient and engaging.

2. Personalization: Technology allows clubs to collect and analyze data on member preferences and behaviors. This datadriven approach enables clubs to tailor their services, from food and beverage offerings to event recommendations, to individual member tastes. The result is a more personalized and satisfying member experience.

3. Virtual Events and Experiences: Especially relevant because of the COVID-19 pandemic, technology has enabled private clubs to offer virtual events, such as wine tastings, cooking classes, or fitness sessions. This has allowed clubs to continue engaging with members during challenging times.

4. Smart Facilities Management: Internet of Things (IoT) technology can enhance the efficiency of club operations. Smart thermostats, lighting and security systems can be managed remotely, optimizing energy usage and security. This ensures a comfortable and safe environment for members while reducing operational costs.

5. Membership Management: Advanced software systems assist in membership management, from onboarding to renewals. This simplifies administrative processes, enabling staff to focus more on member experience and less on paperwork, helping clubs efficiently manage their membership relationships.

6. Enhanced Communication: Social media, email marketing and other digital communication tools help clubs stay connected with members. Timely updates, newsletters and event notifications keep members informed and engaged.

7. Golf and Sports Technology: For clubs with golf courses or sports facilities, technology has transformed the way games are played.

GPS-enabled golf carts provide precise yardage information. Tracking devices also help analyze players’ performance. This enhances the sporting experience and helps members improve their skills.

8. Augmented Reality (AR) and Virtual Reality (VR): These technologies can be used to create immersive experiences within private clubs, whether it’s a virtual tour of the club’s history or an AR app that enhances the ambiance during special events. It’s becoming the future of the private club industry.

Clubessential

MembersFirst

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ClubPay

Clubsystems group

ClubTec/ WebTec

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Cobalt Software

FOOD-TRAK

Jonas Club Software

Technology, including various aspects of artificial intelligence, is having a desirable impact on private clubs, which enhances the member experience. It fosters convenience, personalization and engagement while promoting effective and efficient operations and offering members innovative experiences. Adopting technological advancements is crucial for private clubs to remain competitive and meet the evolving expectations of their members, making their member experience more valuable and enjoyable. B R

Northstar

Paisano Performance Partners

Signera

Strategic Club Solutions

Survey & Ballot Systems

BOARDROOM TECHNOLOGY FEATURE | Northstar Technologies Inc.

Elevating Member Experience With Northstar’s Latest Acquisition THE MEMBER EXPERIENCE LANDSCAPE - A SHIFT TOWARDS DATA-DRIVEN MEMBER INSIGHTS In the dynamic world of private clubs, staying attuned to member expectations can be a formidable challenge. The reliance on gut feelings or sporadic anecdotal feedback often falls short, resulting in missed opportunities for improvement. The pursuit of excellence has prompted leading clubs to pivot towards data-driven solutions about member sentiment.

NORTHSTAR’S GAME-CHANGING ACQUISITION–THE HAPPOMETER ADVANTAGE Northstar, a trailblazer in club management software, is at the forefront of this transformative journey. With a foundation built on a unified database, Northstar has already provided clubs with a single source of truth, facilitating profound insights into member behavior. However, Northstar is constantly looking beyond the horizon; they are continually pushing the boundaries to enhance member experiences further.

In a strategic move that is bound to reshape the private club industry, Northstar has recently acquired Happometer, an advanced technology platform dedicated to managing member experience and team engagement.

Happometer specializes in hospitality and the private club sector, and their expertise in capturing real-time member sentiment is unmatched.

THE POWER OF REAL-TIME INSIGHTS The integration of Happometer’s feedback system equips club managers with a powerful toolset to elevate member satisfaction and drive sustainable growth. The insights derived from member feedback go beyond addressing specific issues. They enable clubs to identify trends and opportunities for innovation. Additionally, the system’s robust analysis capabilities can uncover potential problems before they escalate. This proactive approach is invaluable for clubs seeking to maintain a consistently high level of member satisfaction.

UNLOCKING THE MEMBER EXPERIENCE The member experience has always been paramount for clubs, but today it is more critical than ever. The impact of member satisfaction on loyalty and the ability to attract new members cannot be overstated.

Clubs must evolve to meet these elevated expectations. Gathering feedback is only the first step; the true power of Happometer lies in its ability to translate insights into action.

HERE ARE THE KEY AREAS WHERE HAPPOMETER EXCELS Seamless Integration: Seamlessly integrating with all aspects of club operations and simplifying the feedback collection process.

Whether it’s post-dining experience or after attending a club event, members can effortlessly provide feedback through personalized requests via email or SMS. Immediate Action: Empowering managers to take immediate action based on feedback. The system identifies comments with negative & positive sentiments, triggering real-time alerts. Managers can address issues promptly, even reaching out to members while they are still onsite to address concerns personally.

Strategic Analysis: Offering powerful analysis capabilities, helping managers identify trends and potential issues before they escalate.

Positive reactions from members to specific offerings, practices, or team members can be uncovered, allowing clubs to nurture these positive experiences.

MEMBER ENGAGEMENT AND EMPLOYEE RECOGNITION A robust feedback solution not only enhances member engagement but also recognizes the vital role played by club staff in creating a world-class experience. Adding Happometer’s impressive capabilities is a prime example of the need to evolve, thus helping club managers create a comprehensive member-centric ecosystem.

A great feedback solution helps clubs build stronger engagement with their members. By actively seeking member feedback, clubs demonstrate their dedication to optimizing the member experience.

The feedback collected can be used to tailor future communications, focusing on the aspects that members have indicated as their priorities.

CONCLUSION The private club industry is at a pivotal moment in its evolution.

Member experience and sentiment are no longer mere buzzwords; they are the linchpin for success. Northstar’s acquisition of Happometer represents a quantum leap in the capabilities available to club managers. It is a testament to the industry’s commitment to delivering unparalleled member experiences.

To learn more and embark on this transformative journey towards excellence, request a demo today. B R SEPTEMBER / OCTOBER 2023 | BOARDROOM

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SHIFTING EXPECTATIONS AND TECHNOLOGY TRENDS Providing for the private club industry for over 20 years The leaves may be falling, but your member experience can still climb with Clubessential’s Essential Suite. Technology plays a crucial role in improving those member experiences as club offerings become more diverse and a focus on total wellness emerges. Clubessential actively engages with modern industry trends in our solutions, making it simple for you to accelerate your club experiences from essential…to extraordinary.

MOBILE POS Accommodate on-the-go lifestyles from anywhere on club grounds

MOBILE APP New features like Community Feed allow 360 of engagement

KITCHEN DISPLAY SYSTEM Give members the feeling of familiarity regardless of who serves them

MEMBERSHIP ANALYTICS PREDICTOR Analyze and predict member behavior with your custom thresholds

NEXT GEN SPA MANAGEMENT AND RESERVATIONS Make reservations relaxing with user-friendly interfaces

COMING SOON! CLUB INTELLIGENCE Make informed business decisions based on daily operational data

“We have to be a full-service country club, and members expect a level of service that they don't get elsewhere.”

GIL RUSSELL Assistant General Manager, Happy Hollow Club “Our biggest obstacle was to make a change at a time when the club was struggling on so many different levels financially. We needed to understand what the payoff was going to be for making the switch to Clubessential. And there was an expense involved, but Clubessential paid for itself rather quickly.”

GABRIELLE HART President, Hillendale Country Club — Phoenix, MD "We decided to move to Clubessential because everything we needed was under one roof with a vendor we trusted and liked."

SHAWN ROWLEY Director of Communications and Marketing, Apawamis Club "I have been a Clubessential client for years and have been extremely pleased with the level of customer service provided. I would definitely use Clubessential exclusively for POS, Accounting, back office, website and the smartphone app."

NETTIE BRESEE Chief Financial Officer, Montgomery Country Club

SEE HOW TO MODERNIZE MEMBER EXPERIENCES TODAY!

ClubPay | BOARDROOM TECHNOLOGY FEATURE

By Scott Taylor, Managing Director

Three Reasons Why Clubs Should Use Integrated Human Resource Solutions Human Resource management plays a crucial role in private clubs, as it serves as the linchpin in maintaining the high standards of service and member satisfaction that are essential in these exclusive environments.

HR management ensures the recruitment, training, and retention of talented staff who understand the unique culture and values of the club to create and deliver extraordinary experiences to members. Moreover, it oversees compliance with labor laws, fosters a positive workplace culture, and addresses employee concerns promptly, all of which contribute to a harmonious and efficient club operation.

While numerous HR management solutions exist, such operations can easily become complicated and frustrating in a niche industry like private clubs that require tailored solutions to address their unique needs. Lori Pierra is the Director of Human Resources at the Orchid Island Golf and Beach Club. As an HR expert with over 20 years of experience, she has a good sense of the club’s HR software needs and how ClubPay can help manage HR operations.

HIRING TO RETIRING Pereira explained that ClubPay serves as an all-in-one platform to manage the entire HR operations, including hiring, onboarding, enrolling, payroll, and employee communications. The process at the Orchid Island Golf and Beach Club begins with posting jobs on job boards. The platform makes this step easy by feeding it out to all job boards so clubs can instantly receive applications through applicant pools. When hiring managers are set up for each position, they are able to directly review and choose the applicants they want to hire and then, the onboarding process starts.

In the next stage, new hires will be asked to fill out their onboarding forms and provide the required documents.

She elaborated, “Once they come in for their orientation, we collect their documents. At the appropriate time, new hires get an e-mail sent to their personal e-mail address that says, “It’s time for you to select your benefits.”

That feeds back to us and there’s really no missing out.”

It is important to communicate and notify applicants at every stage which can be automated via email notifications. HR needs to easily collect information such as benefits and insurance, enroll the new hire, gather working hours, schedule payroll, and run performance reviews. Imagine all of these operations are done without leaving the platform which makes the job significantly easier for the club managers.

NO DOUBLE ENTRY One of the major benefits of an integrated HR management solution is eliminating double entries. Once applicants enter their information in one module (e.g. onboarding), it will be automatically transferred to other 62

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modules (e.g. payroll processing). When data is updated in one form, it will be updated across the whole platform. As a result, there won’t be any residual or old information left to cause confusion.

After new hires complete their orientation, their status automatically changes to employee and they get enrolled in the payroll without requiring to re-enter their information. “I’ve worked in other places where there’s been double entry because nothing communicated with other programs.

But in ClubPay, it’s just moving from one module to the other. It’s seamless and there’s no double-entry,” Pereira said.

Data integration is not limited to employee information. Data such as working hours can also be synced to the platform. Whether staff punch in and out on a computer or the club uses biometrics to collect time in and out, the data can be communicated to the HR platform for automatic payroll processing.

GET SUPPORT WHEN YOU NEED IT Many PEOs and HR management platforms can’t offer proper support due to a shortage of agents or disorganized data. Some clubs use a mix of different solutions for their HR operations and in such a case, the lack of integration and uniformity between services can cause many problems including getting proper support. Problems in HR management can cause major dissatisfaction in employees.

Pereira mentioned that most HR management platforms suffer from weak support service and the lack of support could cause delays in payroll processing. She added, “We decided to transition to ClubPay because every time that you call their customer service, a live person answers. If you put in a ticket online, you get an immediate response. I would say the best thing about ClubPay is their customer service.”

Working with an integrated HR management solution like ClubPay gives you the advantage of better client support. Since you use a uniform, integrated platform, there is only one centralized support channel to solve all your problems. The provider of your HR management solution can dedicate more time and focus to helping you when you need it. Data integration and automatic payroll processing reduce the chances of making mistakes or facing system problems significantly, saving the club management team time and frustration. Spending less time on HR means your club managers can focus on leading their teams to provide the member experience that is essential to the vitality and success of the club.

ClubPay is the leading provider of payroll and human resources services designed for clubs. ClubPay’s goal is to help clubs facilitate time-consuming processes in the human resources and payroll departments by providing them with a wide range of services “from prehire to retire” to simplify recruiting, administration, onboarding, payroll, and tax processing.

For more information visit www.clubpayroll.com

Payroll Program of the Year

Recruit Administrate

From pre-hire to retire, ClubPay streamlines operations with a custom suite of outsourced Payroll and HR solutions to meet your club management needs.

Onboard

Payroll & HR Solutions for Clubs

Meet ClubPay’s New Account Managers

Andrew Miller, Account Manager

877-729-4258 | info@clubpayroll.com

Colby Spooner, Account Manager

ClubSystems Group | BOARDROOM TECHNOLOGY FEATURE

By Joe Oswald, President

How Clubs Can Prevent Loss in the F&B Department According to the GGA Partners report “A Club Leader’s Perspective,” 75 percent of club leaders indicated that labor cost impacts were a top factor affecting food and beverage (F&B) profitability, with the general outlook that labor cost impacts in 2023 are more likely to lead to greater losses as opposed to a profitability improvement compared to last year.

A reliable solution to handle this challenge is to invest in F&B technology. Clubs that use integrated F&B technology can reduce labor costs by improving operational efficiency, staff retention, and reducing human errors. With over 45 years of club industry experience, ClubSystems Group has a deep understanding of what clubs need. We suggest that Point of Sale (POS) and online ordering are two main areas that clubs should focus on.

POINT OF SALE

The Point of Sale is the bridge between the front and back of the house, connecting members, service staff, kitchen staff, and even accounting office staff. ClubSystems Group has developed a new bridge, a revamped POS with features that will help clubs better serve their members. When the goal is set to improve member experience, all operations will be optimized to benefit both staff and members. There are several areas in which POS can contribute to this goal: • Member Preferences: The ClubSelect POS can store your member’s favorite dishes, allergies, and preferences and display them whenever a member orders. Let’s say a member’s favorite meal is fish with white wine and they are allergic to Canola oil. Knowing something as simple can make a big difference in the member’s experience and help you save time and cost, and avoid mistakes.

• Ways to Order: To save time and impress your members and staff ClubSelect POS learns the way members customize their orders and stores their five top ways to order for quick access based on the most repeated orders. Members love it when they see you know them and personalize the dining experience.

• Advanced Chit History: This is a game-changing feature to improve your operational efficiency. By having members’ purchase history available, you can repeat purchases quickly. ClubSelect POS stores all orders and allows you to do more than just repeat purchases. You can look up the chits by member’s name, food, and more. The chit menu can show orders in two ways: Member Served and Staff Served.

This division makes it significantly easier to know what members have ordered, who has served them each time, what feedback they gave, and how to improve the experience.

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• Course Overriding: The ClubSelect POS coursing feature allows the bar and kitchen to receive orders organized automatically, no matter in what order the staff enters them. The server simply enters all of the items and the POS automatically sorts them into appetizer, entre, and dessert categories. With the course overriding feature, you can manually change the order of courses in the sorted list. Move the dessert up and prepare the appetizer last. The order is then sent to the kitchen so the kitchen staff can clearly see what order to prepare the courses.

• Portability: Being accessible on tablet devices allows staff to process transactions on the go which improves customer service, reduces wait times, and increases transaction security by eliminating the extra trip to a traditional payment terminal. ClubSelect POS allows you to turn Windows tablets (e.g. Microsoft Surface) into a fully functional POS and take orders on the go with a highly flexible and user-friendly interface to maximize operational efficiency on a portable device.

ONLINE ORDERING

Implementing online food and beverage ordering for clubs can offer numerous benefits, enhancing the overall dining experience for members, improving accessibility, and streamlining operations. It also enables clubs to make better use of their resources.

• Overcome Staff Shortages: Online ordering assists you in overcoming staff shortages by enabling your members to order food and beverages online while playing a round of golf, sitting poolside, or before arriving at the club.

• Enhanced Communications: Members can conveniently order food and beverages through your club’s website or mobile app and get real-time notifications on their order status.

• POS Integration: ClubSystem Group’s Online Ordering application allows you to go beyond the ordinary and offer a seamless ordering experience through integration with the ClubSelect POS. Whether your members order online or in person, their chit history will be stored for future reference and member experience personalization. BR ClubSystems Group is a leading provider of innovative club management software, offering products such as accounting, membership management, food & beverage, catering, tee time management, point-of-sale, and various online services. It is our mission to become the world’s premier software provider to the Club Management Industry by providing superior software support and product enhancements for life. For more information visit www. clubsys.com.

SEE THE DIFFERENCE EXPERIENCE MAKES.

1-800-356-4242

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www.clubsys.com

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sales@clubsys.com

ClubTec | BOARDROOM TECHNOLOGY FEATURE

By Donald N. Williams, CEO

Where on Earth Are We Heading…

(Cuz I’m Not Sure I Want to go There) Recently I had dinner in a restaurant that has fully embraced technology solutions and systems to a level I have never experienced… and a level I hope to never experience again. Upon arriving, I was directed to my table by tapping on a computer screen, entering the number of guests in my party (two) and then seeing a floor map of tables with my table blinking. I was directed to this table by instructions on the computer screen.

When we sat down, I was informed by an actual human being that I would need to place my order using my smart phone. I guess the entire world now has one, so who needs wait staff! Using my phone I scanned the QR Code on the table tent and opened a very complicated menu. The first question was what did we want to drink…starting with selection number one, Water. From there we had to select our drinks from the bar menu, which was too complex for us so we just ordered two glasses of their house wine.

Now on to dinner ordering. There was no room for questions or errors and finding a waiter that was a creation of God versus an engineering or programming team was not an easy task. So, we decided on a pretty basic selection that had very few modifier options. We received a text confirming our order had been received in the kitchen…or outer space for all we knew. The best part of the experience was soon unveiled as our wine order was delivered by a robot…and I am not making this up. The robot asked us to take our drinks off its tray (gender-neutral reference intended) and then rolled off to parts unknown.

In a short time, our robot friend, or its twin, showed up with our dinner order, again directing us to take our order off of its tray. We did this and then did what we came to do, eat dinner. Now I have to tell you, this experience dominated our entire dinner conversation. Had we actually had a need to discuss some family matter, or the state of the universe, we would not have been too focused as this entire experience was a complete distraction.

So why do I bother telling you all of this as part of a BoardRoom Magazine article for their annual club technology issue. Simple…as a long-time provider of software systems and services for the private club industry, I found the above experience to be a very sad forward direction of future solutions. In addition, as a member of several private clubs,

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I would be absolutely appalled by this form of service. Yet to this day, clubs are frequently asking us for new systems to perform tasks that I personally believe are way outside of the services members deserve and expect.

Some time ago, I wrote an article in this same magazine entitled, At the Intersection of High Tech and High Touch. The question posed then and again now…do members want to be served as if they were “Very Important People” or do they just want technology systems to move things along without much human interaction. Speaking as a member, I really enjoy the club staff recognizing me by my name, asking about my family (and me about theirs), getting my favorite drink without me even asking, recommending things they think I would enjoy…basically serving me like I matter! Anyone who has had to battle technology, such as kiosks at the airport, knows that we have developed a world where the human element is very minimized in service to others.

As you know, I have made and continue to make a living developing and selling new technologies to the club industry. But for the life of me, I will not push the boundaries of our systems delivering an experience such as told you about at the beginning of the article. I want to conclude by asking all of you that are in positions of implementing new technologies in your clubs, please stand back and think very hard about what your technology might be doing to the desired member experience. We will keep delivering new ways to make your lives more efficient…and hopefully without making your members feel less served.

Feel free to contact me anytime if you would like to discuss this topic or some of the new things we are doing here at ClubTec for you. BR Donald N. Williams is the CEO of ClubTec. For more information, please contact him at 972-756-9000 ext 111 or by email at dwilliams@clubtec.com. You can also visit our websites – www.clubtec.com.

Over 40 Years

Unsurpassed Service & Client Care

ClubTec and WebTec have leading-edge technology tools clubs need.

www.clubtec.com • www.clubtec.com/webtec • 800.800.5507

Cobalt Software | BOARDROOM TECHNOLOGY FEATURE

By Stephanie Castro

Enough About Artificial Intelligence!

Let’s Get Back to Technology Basics Yes, I am a huge proponent of artificial intelligence. And no, I don’t think it will solve all technology issues in the club industry.

AI as it pertains to clubs still falls within the realm of thought leadership. Even though my company Cobalt Software is the first club management provider to incorporate AI into our platform, I know the impact of this feature may remain limited for some time.

Our more urgent goal is to address some basic matters still plaguing many clubs today.

The following are the most common concerns we hear from clubs. All of these are fundamental in nature. They are not necessarily easy to solve and may require some financial investment. Nevertheless, these are basic foundational elements which, when strengthened, will set the club up for years of future success.

members, such as creating billing mistakes.

Members shouldn’t have to pay for the club’s decisions around software. A comprehensive platform of best-in-class solutions such as Cobalt inherently addresses this concern.

VENDOR RESPONSIVENESS AND FLEXIBILITY

All software should come with good support.

Unfortunately, support is the number one issue we hear about from club professionals. This is a basic element ripe for improvement. It’s our IT INFRASTRUCTURE mission at Cobalt to provide the industry’s best Slow internet, network configuration issues, old hardware, bad cell service coverage. It’s and most responsive service. Club leaders also surprising how many clubs still complain about these types of issues. And if your connectivity often complain that their requests for changes service isn’t strong, everything else will suffer. Sometimes your hands are tied, but often these are refused, or that certain integrations will not concerns can be alleviated by investing in strengthening your infrastructure. It’s important to be supported. This lack of flexibility takes a consult an expert for an assessment. toll on the club over time. At Cobalt we believe in interoperability and open API’s as well as DISCONNECTED SYSTEMS allowing our clients to request new features and Many clubs we’ve spoken to use a surprising number of different technologies to operate. The enhancements, which are developed quickly. reasons for this vary. Typically, one department gets stuck on a single system, but it doesn’t This partnership-first approach is a big reason operate well with the rest of the platform. Invariably this causes headaches for club personnel why clubs choose to work with Cobalt. who manually update multiple systems. This becomes a problem when it starts impacting It’s great to keep our eyes towards the future and think about how new technologies such as AI will impact the club industry. However, these exciting new technologies should not distract us from the most fundamental aspects of technology at your club.

If you are facing any basic concerns today, it may be time to strengthen your technological foundation by investing in infrastructure, upgrading to a modern comprehensive club management system, or finding a more responsive and flexible technology partner. BR Stephanie Castro is chief operating officer at Cobalt Software, the first club management software provider to offer artificial intelligence solutions for the private club industry.

Stephanie can be reached at stephanie@mycobaltsoftware.com.

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FOOD-TRAK | BOARDROOM TECHNOLOGY FEATURE

By Bill Schwartz

New Release! Ruggedized Scanning Tablet for FOOD-TRAK® Club Clients SCI, developers of the FOOD-TRAK F&B Management System, is pleased to announce the addition of a new mobile device to our FOOD-TRAK Mobile Partner (FMP) line. We have had scanners available for our club clients for nearly 40 years, and this is the first time we are actually adding a tablet to our line. Until recently, we were unable find a laser scanning tablet that was rugged, sealed and capable of the temperature range needed.

The Zebra ET40 is available in 8 or 10 inch screen sizes, providing significant screen real estate for data collection and form visibility. This tablet is a fully functional Android tablet with a built in laser scanner, long battery life, ability to withstand drops from four feet onto concrete, and temperatures from -4F to 120F degrees, easily handling freezer and outside receiving dock extreme temperatures.

Clubs can use the ET40 for smaller outlets to create requisitions and take inventory, while using the FMP scanners with trigger handles for central storage, warehouse and larger venue operations.

Adding tablets to our mobility platform provides the appropriate scanner coverage for any area of the operation.

As with our other devices, the same FOOD-TRAK Mobile Partner software is fully contained on the ET40 along with the database and relevant forms and templates, eliminating the need for an uninterrupted connection to the host system. A good internet connection is not typically available in walk-ins and freezers, making devices which need that constant connection unusable in these situations.

Instead, with the FMP devices, data is synchronized at the client’s convenience when a WiFi connection is available.

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In addition to requisitions and inventory, clients use the device to receive goods, initiate transfers, track waste or create shopping lists for conversion to purchase orders. All this can be done by simply scanning barcodes or using a template. Since multiple bar codes can be associated with single items, the tablet can scan and add new bar codes to existing items as well.

The ET40 can be used as a typical Android tablet would for connection to the internet and web browsing. Since the screen is large enough to facilitate web browsing, the tablet can access the host FOOD-TRAK System as if it were a laptop or desktop computer. In this way, all the functions FOOD-TRAK has to offer are available.

“We love the immediate and accurate scanning, and that we can scan without a connection and sync with WiFi later. It’s great for wine as it displays the full name of the product and we can tell if we are counting the right item.

It is very user-friendly – I did a lot of set up intuitively instead of needing an instruction guide.”

Lindsay Thomas, director of wine and beverage River Oaks Country Club in Houston The ET40 is also available with a rotating swivel hand strap that mounts to the back of the device. The strap includes extra triggers for the laser scanner, allowing the user to use one hand for the tablet and the other hand for entering data.

BEST OF ALL – the ET40 is the least expensive mobile device we offer!

For all these reasons, we are very proud to add the ET40 to our line of FMP scanners. Food service kitchens and storage areas can be hostile environments for electronic gear, so we only offer devices that can handle the environmental challenges.

If you are currently a client, and you’ve been waiting for this type of mobile device for your team, please contact your account manager. If you are not a client, but are intrigued by what you’ve seen and heard about how the FOOD-TRAK System helps many of the top private clubs, perhaps this is the right time to explore further! B R

0 198

2020

4 Reasons Why Top Clubs Choose FOOD-TRAK®

We know you have choices when selecting F&B management software for your club.

So how do you choose the right system? We believe it is as much or more about talent than about software. If you agree that it takes the best of both, then the choice is easy. The company that started it all 43 years ago is your key to success!

4 Reasons Why our Clients Chose FOOD-TRAK® a To ensure a successful result, our senior consultants do a deep dive to fully understand your operation, staffing and process flows.

a Working with you, they develop a blueprint for database construction, training and startup based on your specific objectives and time frames.

a Our team builds the database and provides position-targeted training using your data to implement the plan as designed.

a We continue the relationship over the long term to help you get the most benefit from the system and related processes. We do this through ongoing training, consulting and monitoring.

In the final analysis, it’s about talent – your and ours combined – to produce the best possible result.

Our purpose and passion is and will always be to help clubs get as close to their ideal food and beverage cost as possible. We have remained resilient in delivering a turnkey setup giving your employees the confidence and the training to be successful!

Contact our club account managers to get started!

800.553.2438 | WWW.FOODTRAK.COM

FOOD & BEVERAGE MANAGEMENT SOFTWARE 2006 - 2022

Jonas Club Software | BOARDROOM TECHNOLOGY FEATURE

By Joe Oswald, President

Clubs Are Adopting Tech Quicker Than Ever Before Throughout 2023, Jonas Club Software continued working towards innovative and dynamic new solutions to help clubs better serve their members in the future while at the same time, delivering what clubs need today. Both goals are always undertaken with a commitment to innovation, security, and reliability. But it does create a bit of a balancing act between focusing on cutting-edge trends and delivering what clubs and their members are ready to implement. We often look to other markets to anticipate what will influence your club members and impact clubs like yours, and it feels like everyone from club managers, staff and members are ready to adopt technology quicker than ever before - closing the gap in an industry that many club managers will admit, was a bit of a laggard.

If you haven’t seen the technology adoption curve, it’s a bell curve that breaks people into five stages of tech adoption: Innovators, early adopters, the early majority, the late majority, and laggards. Depending on your club culture, you might have no reason to be an innovator, and that’s completely understandable. We see a small number of clubs as early adopters while the majority, just like the bell curve predicts, fall into the middle section of pragmatists. Despite this, we’re seeing the adoption timelines shrinking every year.

MOBILE POINT OF SALE

How long does it take a new application to move through the adoption curve? In the case of our Mobile Point of Sale, adoption has been measured. When we started development, we identified that clubs were expanding F&B operations, with more patio venues and poolside service, and servers in the restaurant industry had started using mobile devices. Clubs have needed to balance a desire for increased efficiency with an eye toward maintaining the high-touch personalized service clubs are committed to. We have noted that during and since the pandemic, clubs and their members have been looking to blend in more technology in an unobtrusive way to increase efficiency. When servers don’t always have to return to a POS workstation to send orders to the bar or kitchen it reduces the time a member has to wait for their order and creates efficiency for staff.

For Bogey Hills Country Club in St. Charles, Missouri, the Mobile POS became easy for servers to adopt when the new tablet version was released in 2022. General manager and president Angel Walters Likens explained that in the beginning, servers were hesitant to make the switch but quickly realized that they could place drink and food orders quicker and with fewer steps. “The younger servers, they pretty much can probably get it within a couple of hours.” She stressed that

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for clubs looking to introduce a mobile point of sale, adoption will be easier if it can resemble the POS workstations as closely as possible.

NEW MOBILE APP

In the case of our ClubHouse Online Mobile App, clubs have demanded it almost immediately because their members now expect many new features in their personal mobile technology. ClubHouse Online first launched a member mobile app in 2015. This year, we launched the next generation of the Mobile App with a completely new design, built with added functionality and greater flexibility to allow clubs more customization.

Cuscowilla on Lake Oconee, a top-ranked residential golf club in Georgia, was an early adopter. As club engagement increased during and after the pandemic years, the club recognized they needed more technology to help serve their members. They had previously started using the original ClubHouse Online Mobile App in 2018 but according to Maddie Atkinson, membership and marketing manager, “The new app just kind of brought to life usage. It just has skyrocketed.”

Getting members to accept change and to use a new platform or app is a reason why clubs fall into the laggard category of adoption. At Cuscowilla, Atkinson explained how helpful it was that core features remained the same between the old and new app, “I think that the mixture between the upgrade from the last app to this app was a really good combination of keeping exactly what the members understood and knew how to use from the old one, but also revamping it enough to where they still feel like it’s new. I think [ClubHouse Online] did it very tastefully. Not changing too much, but just enough.”

These two applications illustrate the balancing act that comes with innovation. On the one hand, the Mobile POS took nearly three years to get through the first two stages of the adoption curve while on the other hand, the new mobile app was being requested immediately once it was released. Societal trends and the appetite of your staff and members ultimately determine when the time is right for your club to adopt the next big thing. B R Jonas Club Software helps clubs thrive by focusing on the creation of exceptional experiences. These experiences are delivered through industry-leading services, integrated applications, innovative technology, and long-term partnerships with the clubs we serve.

With applications ranging from Accounting to Point of Sale, Bookings and Reservations, Websites, and Mobile Apps, Jonas Club Software is the standout choice for clubs driven to offer exceptional member experiences. For more information visit www.jonasclub.com.

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MembersFirst | BOARDROOM TECHNOLOGY FEATURE

By Victoria Burns, Corporate Marketing Manager

Embracing Website Automation for the Future Staying ahead in the club industry demands both traditional charm and innovation. One significant game-changer is automation—a tool reshaping the member experience, enhancing engagement, and refining operations.

PERSONALIZED MEMBER EXPERIENCES THROUGH AUTOMATION Clubs strive to make their members feel special. Traditionally, this involved handwritten notes, manually sent event invitations, and diligently tracking RSVPs. While the intent is admirable, the method is labor-intensive. This is where automation steps in. By identifying key club communications ripe for automation, we can offer personalized experiences at a scale that was previously unimaginable. From automated birthday greetings to personalized event recommendations based on a member’s interests, automation ensures clubs stay closely connected with their members without overburdening their staff.

KEY OUTCOMES OF EMBRACING AUTOMATION IN CLUB MANAGEMENT Time Efficiency In club management, automated emails are indispensable. By segmenting and targeting members based on key data, clubs can effortlessly send personalized messages for various occasions, from wedding anniversary acknowledgments to reservation reminders. Think of it as having a virtual assistant; it streamlines communication, allowing management to focus on more strategic priorities.

Consistent Member Engagement Automation facilitates timely notifications to members, covering everything from dining reservation reminders to JR Golf event details.

Leveraging consistent touchpoints, especially through push notifications, ensures members always feel in the loop. With many clubs still exploring the full potential of these tools, adopting a “set it and forget it” approach can enhance member engagement remarkably.

Improved Member Retention Member retention isn’t just about numbers; it’s a club’s heartbeat.

Long-standing members not only uphold the club’s distinct culture but also foster community, acting as guides for newcomers. Introducing automation into this mix amplifies the club’s ability to nurture and cater to these members. For instance, remembering and celebrating club anniversaries using automated notifications can rekindle fond memories and renew members’ loyalty. Such automation ensures that every interaction resonates, strengthening the bond members feel with the club and affirming their decision to remain a part of the community.

Streamlined Operations Embracing automation offers clubs the unique ability to optimize routine tasks, ensuring smooth, efficient operations that remain consistent, 74

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regardless of staff turnover or expertise. Such consistency is notably beneficial during the new member onboarding phase, a crucial time for fostering engagement. Automation precisely addresses member questions and tailors communications based on membership type. Automated email series enable clubs to deliver content that matches their goals and resonates with members. By integrating new member surveys, clubs can gather insights to fine-tune the onboarding process, establishing trust and paving the way for lasting loyalty.

Immediate Member/Prospective Member Engagement In an age of instant online information, rapid responses are expected.

Website automation lets clubs integrate live chatbots, promptly addressing the queries of members and potential members alike. These bots, tailored to the club’s specific information, ensure information is timely received and accurately relayed. For complex issues/questions, they seamlessly transition to human representatives. This blend of automation and personal touch fortifies a club’s reputation for unparalleled member service.

Personalization at Scale This isn’t just about knowing member names; it’s about understanding their preferences. Tailored push notifications, such as those for amenities of interest or club announcements, provide personalized engagement, enhancing the club’s relationship with its members. By tapping into the power of these timely alerts, clubs can stay top-of-mind—a true hallmark of an elite club experience.

Data-Driven Feedback In today’s data-centric landscape, clubs utilize member feedback for tangible benefits. Automated surveys after events or dining experiences directly inform future decisions and service adjustments. When members see their feedback influence club decisions, it deepens their connection.

This transparency is a powerful testament to the club’s dedication to member experience.

CHARTING A FORWARD-THINKING PATH Automation bridges the gap between tradition and innovation for clubs, setting a new standard that ensures they remain central to their members’ lives. More than just simplifying tasks or providing timely notifications, it’s about crafting an environment where every member feels recognized and valued. By leveraging automation, clubs can enhance their cherished hospitality traditions with the help of modern technological advances, offering enriched experiences to members.

Victoria Burns, corporate marketing manager at MembersFirst, has worked at four private clubs before her eight-year tenure. She recently led a successful New Member Onboarding Program benefiting clubs nationwide. Connect on LinkedIn: linkedin.com/in/ victoriaburns1.

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info@membersfirst.com | 508-653-3399

See for yourself at www.membersfirst.com

Strategic Club Solutions | BOARDROOM TECHNOLOGY FEATURE

The Top 5 Mistakes Private Club Board Members Must Sidestep Private club board members often walk a fine line, balancing their business acumen with the passion and emotions as a member of the club. Serving on a club board can be an underappreciated volunteer responsibility, but it’s a necessary one. The challenge is while board members occupy “rented seats,” their backgrounds may not necessarily equip them with the exact skills required to navigate this complex club landscape.

1. You may know accounting but do you know menu engineering?

One of the primary pitfalls is the mistake of importing business expertise without adjusting for the club environment. A Chief Financial Officer may be adept at managing the financial workings of a corporation, but when it comes to club-specific operating decisions like which proteins to offer, their approach might lack the required nuance. It is essential to recognize that the club industry demands unique perspectives.

Strong governance is paramount to avoid this pitfall. Clear roles and responsibilities, along with a deep understanding of the unique demands of club management, allow for effective decision-making.

2. Ready. Fire. Aim. Another trap is reactivity, as opposed to proactivity. In an era of rapid evolution, boards can easily fall into a cycle of fighting

fires rather than shaping futures. Strategic planning should be a proactive endeavor, forecasting, navigating industry trends, member needs, and potential challenges. Much like planning a long trip, we may need to reroute due to unforeseen circumstances, but the destination remains the same.

3. The glass isn’t always half full - it might just be four ounces full Over-optimism poses the third challenge in the journey of strategic planning and budgeting. While positivity is valuable, an excessively rosy outlook can distort budgeting decisions, threatening the club’s financial sustainability. Boards must balance optimism with a realistic, data-driven understanding of financial potential and limitations. If aggressive projects are developed, there are corresponding expenses. If growth doesn’t materialize as expected, adjustments or additional investments must be considered. B R Work with SCS and exhale knowing you have clarity. The process is easy and gets input from key stakeholders so you can achieve your goals, make informed decisions, and create a sense of unity and purpose among key stakeholders.

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SEPTEMBER / OCTOBER 2023 | BOARDROOM

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Survey & Ballot Systems (SBS) | BOARDROOM TECHNOLOGY FEATURE

By Mitch Huffman, Digital Sales Representative

Elevating Member Participation: The Future of Voting in Private Clubs UNEARTHING THE SIGNIFICANCE OF CLUB VOTING Why does voting matter in your club? Voting holds the power to shape the strategic direction of your organization by valuing member input. It cultivates trust, transparency, and a sense of ownership among members, breathing life into your club’s governance. Moreover, an engaged membership leads to a greater influx of talent and leadership, ensuring a healthy future for the organization.

THE CURRENT LANDSCAPE OF CLUB VOTING For private clubs, voting serves various crucial functions. Bylaws, a cornerstone of club governance, often require membership votes for ratification. These votes ensure that significant changes to the club’s governing rules receive input and approval from the entire membership, fostering a sense of inclusivity and democracy.

Furthermore, significant financial decisions, such as capital expenditure approvals for renovations, can evoke passionate discussions among members.

The allocation of resources for clubhouse or course renovations often directly impacts members. Managing these decisions through an efficient, transparent, and secure election process is crucial for maintaining harmony and trust within the club.

Board elections and proxy votes are the gold standards of governance for private clubs. Encouraging member participation in these votes not only reinforces the club’s democratic process but can also encourage highly engaged members to pursue leadership roles. This leads to a greater sense of ownership and engagement among members.

NAVIGATING THE VOTING PROCESS: PITFALLS TO AVOID Inadequate member engagement can undermine the democratic process, particularly when voting methods favor one demographic over another. It’s essential to consider generational differences in voting preferences and ensure that the chosen methods encourage participation to all members.

Effective engagement strategies can lead to a more representative and inclusive decision-making process.

Avoiding conflicts of interest is paramount; improper tabulation practices can lead to disputes and legal liabilities. Clubs should implement safeguards to prevent any perceived bias in the vote-counting process, ensuring a fair and transparent election. This means independent oversight and implementing objective, impartial tabulation procedures is essential.

Maintaining security and voter integrity is critical, particularly with free software solutions. The security of the membership database, one of the club’s most valuable assets, must be safeguarded at all costs. Robust cybersecurity measures should be in place to protect sensitive member information, and to ensure the election process is secure and tamper-proof.

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TRENDS SHAPING CLUB ELECTIONS Where is the future of voting headed? The shift towards electronic voting is evident, with a substantial 63 percent year-over-year increase observed by Survey & Ballot Systems (SBS) in 2023. Electronic voting simplifies the voting process and can enhance the efficiency and accessibility of elections.

Hybrid voting, which integrates electronic and paper ballots, represents approximately 20 percent of the club elections managed by SBS. This combination election model accommodates members who may prefer traditional paper ballots while still benefiting from the advantages of electronic voting. It provides a flexible approach to meet the diverse needs and preferences of the membership base.

This trend reflects a strategic effort to reach members through diverse mediums, including text invites, single sign-on integrations, email, and QR codes. By embracing modern communication channels, clubs can engage members where they are, increasing the likelihood of election participation.

These innovative methods can make the voting process more convenient and accessible.

Moreover, over 65 percent of clubs now opt for full third party services, highlighting a desire for a more hands-off approach to election management.

This shift toward outsourcing election processes underscores the importance of impartiality and expertise in managing elections. It allows clubs to focus on their core activities while ensuring that elections are conducted transparently and professionally, building trust among members.

PIONEERING CHANGE: A ROADMAP TO MODERNIZE VOTING How can your club implement a successful voting transformation? Start by assessing your bylaws to determine if electronic voting is permitted, and if it is not, consider amending them to align with modern voting practices.

Other important steps in this process involve regularly updating and assessing your member database to ensure contact information for your members is current, creating a tactical communication plan to keep your members updated with the new process, and providing support to them before and during the voting. When done correctly, your members are fully informed and supported by the club during the transition to implementing electronic voting options.

With this strategic approach to voting, your club can foster increased engagement, ensure transparency, and strengthen trust among your members.

By embracing the evolving landscape of club elections, you will lay a solid foundation for a successful future in governance. B R

UNLEASH EMPLOYEE POTENTIAL TAKE YOUR STAFF EXPERIENCE TO THE NEXT LEVEL Are you ready to take the leap into the future of employee excellence? At Club Core, we're not just reimagining the workplace; we're rewriting the rules.

Club Core is a centralized hub to keep your staff engaged, consistent and efficient.

ATTRACT top talent by meeting the needs of the modern employee with flexible, personalized learning available anytime, anywhere

ONBOARD staff seamlessly, with consistent training materials and interactive communication tools for a confident and successful day 1

TRAIN employees with a platform that delivers diverse training content, progress tracking and tailored learning experiences to individual needs

EVALUATE with standardized assessment criteria, real-time feedback, and data-driven performance metrics, while creating mentorship opportunities

RETAIN talent by fostering loyalty and engagement through effective communication, and on-going skill development opportunities, making employees feel valued and informed Club Core is the future for onboarding, documentation, training, and communication. This complete system has quickly become one of the core ingredients required for our business.

- Jeremy Logel, Executive Professional, Elmira Golf Club

For more information contact:

jfinley@paisanoperformance.com

dave@clubcore.com

BOARDROOM TECHNOLOGY FEATURE | Signera

Is Hardship the Key to Growth and Future Success?

We have all been through a lot these past few years. Some events and industry trends throw us back on our heals and force us to get creative, try new approaches, and find solutions we may not have discovered otherwise. Hardship introduces constraints that force creativity. It helps you pare down to what really matters. Turning obstacles into opportunities requires an open and flexible mindset. You have to be willing to see your challenges from new angles and turn obstacles into chances to grow.

During the pandemic Gordon Wagner of Sugar Creek Country Club said they instituted a reduction of hours of some dining venues, and offered a limited menu. The menu concentrated on high volume member favorites, and high margin items in the Mixed Grill and were changed up monthly. In addition, they offered a weekly special with two salads, three to four entrée’s and two dessert options that were different every week. The practice produced higher sales and they were better able to control labor and food costs. When hardship hits it forces you to reevaluate processes and find new solutions. Look for ways to simplify routines and cut out waste.

When there are problems to solve, people get creative. Encourage your team to brainstorm new ideas, try different approaches, and take calculated risks. Even if some attempts fail, you’ll gain valuable insights. Julie Sterner of Forest Highlands Golf Club said they initiated Smokey in the Pines BBQ during the pandemic to provide an outdoor location for members who were uncomfortable going indoors.

Additionally they purchased a food truck which they used at various locations and events with different themes each week from sliders to tacos. Both additions are still popular with members. Hardship makes it necessary for change and as the old proverb states “Necessity is the mother of invention”.

If handled wisely, hardship forces us to take a deeper look at what we are doing and what we can do better. Continuing to develop that mindset after the hardship has past allows for continued growth and innovation. B R

SEPTEMBER / OCTOBER 2023 | BOARDROOM

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EXECUTIVE SEARCH COMMITTEE

KOPPLIN KUEBLER & WALLACE Tees Off International Expansion

Michael Herd Joins KK&W as Head of International Search & Consulting

Herd’s expertise spans multiple contiKOPPLIN KUEBLER & WALLACE continues to methodically add the brightest and nents and has positioned him as a trusted most accomplished executive talent to the team. We would like to welcome the industry leader. In recent years, Herd has esteemed Michael Herd as head of international search and consulting. successfully collaborated with renowned Based in the United Kingdom, Herd comes to KK&W with over a decade of clubs across the globe, including those in experience in the golf and club industry. He most recently held the position of the United Kingdom, Ireland, Europe, the managing consultant with Colt Mackenzie McNair, an international executive Middle East, China, and Australia. His dedsearch firm specializing in the placement of senior-level executives within the ication to understanding the unique needs golf, leisure, and hospitality industries. Prior to pursuing a career in executive of each organization and sourcing leading search, Herd was active in the golf industry working with the DP World Tour, candidates has earned him a stellar reputaWest Hill Golf Club, and Wentworth Club in the United Kingdom. tion in the industry.

KK&W partners agree, “Michael brings a wealth of expertise and passion to Herd aligns with KK&W’s approach, our team. He has been successful in delivering exceptional senior executive which extends beyond merely filling posearch mandates for some of the world’s leading clubs. Michael is aligned with sitions. He takes pride in nurturing talent our core values, demonstrates tremendous dedication, and has a genuine deand assisting professionals in their career sire to elevate the industry as a whole.” growth. With his guidance and support, candidates are empowered to unlock their full potential and thrive in their respective roles.

Furthermore, Herd is committed to providing invaluable industry advice and insights to club boards and committees. His deep understanding of the international golf and club industry landscape enables him to provide innovative solutions and strategic best practices.

“This is an incredible opportunity to partner with KOPPLIN KUEBLER & WALLACE on the global stage,” expressed Herd. “I am honored to be at the forefront of cultivating their international presence further, leveraging my skills to connect exceptional talent with clubs and resorts. Together, we will offer strategic guidance, enhance organizational performance, and drive longterm success for our esteemed clients and candidates.”

Michael Herd can be contacted by email at michael.herd@kkandw.com and learn more online at www.kkandw.com/ international. B R 82

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“Notwithstanding our high expectations, the actual service we received from the KK&W team exceeded them. Our two “point people” that we dealt with at least twice a week over several months were Kurt Kuebler, named partner, and Paul Levy, past President of the PGA of America. Both men were accessible and highly responsive. The original timeline we received at the start of our process was never altered. The quality of the candidates that were presented to us were outstanding.”

Michael Nicolais, Search Chairman La Cumbre Country Club, Santa Barbara, CA

RICHARD KOPPLIN

KURT KUEBLER

THOMAS WALLACE

JODIE CUNNINGHAM

J. G. TED GILLARY

MICHAEL HERD

PAUL LEVY

SAM LINDSLEY

LAWRENCE MC FADDEN

MARCIE MILLS

MICHELLE RIKLAN

LEN SIMARD

MICHAEL SMITH

ARMEN SUNY

ANNETTE WHITTLEY

Serving The Industry Since 1996 WWW.KKANDW.COM

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CLUBLEADERSHIPALLIANCE.COM

CLEVELAND | DENVER | HOUSTON | JUPITER | LONDON | NAPLES | NEW YORK | SCOTTSDALE | WASHINGTON D.C.

EXECUTIVE SEARCH FIRM OF THE YEAR 15TH YEAR IN A ROW

SCAN TO BROWSE OUR ACTIVE CAREER OPPORTUNITIES Specializing in GM/COO, CEO, AGM, Clubhouse Manager, Food & Beverage, Financial, Golf, Culinary, Agronomy, Racquets, Human Resources, Fitness & Wellness, Membership/Marketing Searches.

ED DOYLE

F&B COMMITTEE

Ed Doyle is the president of RealFood, Hospitality, Strategy and Design, a Troon company. A graduate of the Culinary Institute of America, Ed has worked in some of the finest kitchens and food service operations across the industry, including a long list of award-winning hotels and restaurants. His culinary accomplishments have received equal attention with features in Food and Wine, Restaurant Business, and Food Arts magazines. Ed was most recently recognized as 2021 Adviser of the Year by Golf Inc. magazine for his contributions to club and resort food and beverage. The original founder of the RealFood consultancy, Ed has been helping clients since 1996 to define, design and deliver unique and memorable hospitality experiences. He can be reached at eddoyle@rfhsd.com, (617) 876-2100.

A Restaurant Concept Is More Than An Idea

Developing an F&B Conceptual Framework in Service to Your Club A food and beverage concept is the identity of a restaurant or dining venue—the many connected characteristics that add up to a sum total of a differentiated hospitality experience.

Concept development is the structured process of creating and defining this identity. The perfect mix of market research, storytelling, visual inspiration, experiential touchpoints and operational data points is the foundational strategic plan that makes ideas tangible.

Your F&B outlet’s concept is the prototype for your real-life experience, ready for optimization and realization. It encompasses everything you need to start a new restaurant or breathe new life into an existing F&B outlet.

THE IMPORTANCE OF THE PROCESS F&B concept development maps experiential and operational details in service to your club’s overarching vision and experience. The goal is and always has been to be the best version of your club. The first and most important component for successful F&B conception actually has nothing to do with food and beverage. It has everything to do with knowing your club’s true identity and the vision for its future—it’s about delivering on your brand promise. Ultimately, your food and beverage outlets operate in service to this effort.

The concept also serves as the vehicle to align stakeholders to one vision. The process captures the notions, brain waves and even preferences of everyone involved, vets and validates each of them, and then sets the viable ones in stone. Ideas turn into action items, and visions become strategic realities.

CONCEPTUAL FRAMEWORK COMPONENTS A restaurant’s conceptual framework has many components. Three key areas are central to the approach: identifying the market opportunity, defining the guest experience, and outlining the scope and range of the product offering.

Within identifying your market opportunity, the demographics and psychographics of your target market (membership population and geographic location) are defined and studied. It also includes identifying and understanding your competitive set (other places where members eat and drink) and establishing benchmarks for pricing, product offering and operating model. As the name suggests, the market opportunity component also helps to identify unmet market needs, unearthing gaps in the marketplace to leverage.

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The definition of the member and guest experience is where creativity shines but also where key operational details are decided, including seasonality and dayparts served, organizational structure, staffing model and service style. It’s here where unique experiential elements start to take shape, like environment, interior look and feel, uniforms, OS&E and music selections. The expression of the concept’s guest journey and brand materializes through this development work.

Finally, the scope and range of the product offering is where schematic menu development helps to define the style of food and beverage served and price range targets, giving the culinary and management teams a foundation, fences and filters to work from and within.

THE RESULTS OF CONCEPT CLARITY The ideal end result of concept clarity is the alignment of all involved stakeholders. Concept development work lays the foundation to get all involved parties—from the design team to leadership, operators, staff and the member community— on the same page, working toward the same outcome and delivered experience. Especially in the case of multiple F&B outlets at one property, conceptual identity is critical in differentiating each venue’s role and giving each a purpose and place within the ecosystem of a club environment.

A well-formulated concept is a valuable tool for design project teams, whose members include architects, interior designers, food service design teams and other design specialists.

In the private club setting, a well-presented concept helps to garner member adoption and support. For operators, it’s the blueprint for service standards, menu offerings and unique member and guest experiences. The concept is the foundation on which you build consistency.

A restaurant concept is more than an idea. It’s part of the critical path to achieving financial, operational and experiential success. A well-developed restaurant concept sets the stage for the steps that follow. It’s your guiding light for stakeholder alignment, consistent performance and a resonant hospitality brand that represents and amplifies your club’s character. B R

ARCHITECTS PLANNERS INTERIOR DESIGNERS

Chris McCagg, AIA, President is a registered architect in Connecticut, Delaware, North Carolina, New Jersey, New York, Rhode Island, Pennsylvania and Washington State and is in the process of becoming registered in Massachusetts, Illinois and Florida. Chris is also a registered Interior Designer in Connecticut. He is an active member of The National Trust for Historic Preservation, The Nature Conservancy and Surfrider Foundation.

I find it hard to believe that January 2024 will mark 5 years since the latest iteration of Rogers McCagg Architects and Interior Designers, with me at its helm. Forty-five years prior, Jim Rogers, along with Charles Baskett and Jonathan Butler, established what became one of NYC’s most highly regarded architectural firms — Butler Rogers Baskett Architects. We developed a reputation as exceptional listeners and consensus builders and pride ourselves on decades-long client relationships.

Rogers McCagg has been so fortunate to collaborate with the most iconic private clubs in the country. Our deep knowledge and unique expertise in Planning, Architecture, and Interior Design make us the choice for the most discerning clubs.

Personally, I am incredibly grateful for the challenges and successes during my 30 years with the firm. I’m driven by the ever-changing landscape of our industry. I never tire of a process that begins with a committee made up of members with varied backgrounds and special interests, yet who ultimately, reach consensus and excitement over a singular vision. It is uniquely challenging and gratifying to collaborate with volunteer led committees.

When Jim Rogers handed me the reigns in 2019, I was left with large shoes to fill and traditions to uphold, but much like the finest private clubs, RMA continues to evolve and adapt to everchanging times while respecting our history and founding principles. It’s been a pleasure serving our clients, and we eagerly look forward to meeting and serving new ones.

Architects. Planners. Interior Designers. Private Clubs, Recreation, Hospitality, Community + Education 44 North Main Street : South Norwalk, Connecticut : 203 354 5210 : rm-arch.com

DISTINGUISHED CLUBS SHOWCASE

A Century in the Making: The Milwaukee Athletic Club The Milwaukee Athletic Club (MAC) is a Distinguished Club With a clear vision and the dedication to take the building down to the studs and reinvent the members’ experience, this project included the following that has deep roots and history. major improvements.

The club officially began in 1882, but landed in its current location in 1917, in a building that cost $2 millon and designed by local architect Armand Koch in a Neoclassical style.

In 1948 the clubhouse underwent a nine-year restoration developed by Eschweiler & Eschweiler.

Fast forward to April 2022 and the members and club celebrated the completion of a $62 million historic renovation project which restored The MAC to its former grandeur and included many state-of-the-art enhancements.

Josh Jeffers, founder and chief executive officer of Milwaukeebased J. Jeffers & Co. and Tony Janowiec, founder and chief executive officer of Milwaukee-based Interstate Development Partners took on this four-year journey.

“It was a total gut rehabilitation, a top-to-bottom renovation of a building that was built in 1917 with amazing thoughtfulness put into the aesthetics and the culture of the urban downtown Milwaukee business community,” said Josh Jeffers.

“We needed to replace all the mechanical, electrical and plumbing infrastructure throughout the entire building and bring everything up to present-day code compliance. The only way to accomplish this level of retrofit was to demolish everything and take it all down to the original frame,” he added.

“We came into this knowing that the rehabilitation work was one slice of the pie. We did our research, not only the historical background research. And early on, we knew that in order to honor this building and have it meet the demands of today’s members, tenants, guests and event-goers, we would have to find the balance between what seems like a juxtaposition: and historical property with deep meaning to the City of Milwaukee and a technologically advanced social club that attracts people of all ages,” stated Tony Janowiec.

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Lodging Renovation of six hotel rooms and 27-member residence apartments.

Athletics • Functional/free weight (Keiser Strength and Precor) training turf, hosting sleds, 21’ functional ring, water rower, ski erg, Assault Bike, and Curve Runner.

• Group exercise room (rooftop available seasonally) providing yoga, kickboxing, dance cardio, barre, and HIIT. • Cycle studio includes top-of-the-line bikes from Keiser and Peleton and large screen displays to provide members with the ultimate experience with MyZone heart rate technology to race against other participants.

• Stretching/Recovery area offering Hyperice, and Hypervolt massage gun to target tight muscles and Normatec compression boots.

• Competition size indoor basketball court (pickleball too) for leagues, tournaments and challenges.

• 20-meter saltwater pool, three lap lanes, open year-round for recreational swimming, private lessons, and group classes.

• New men’s and women’s locker rooms including steam rooms, Himalayan Sea salt sauna with Bluetooth speakers, and luxury robes/towels.

• Virtual Golf Suites featuring Trackman for serious, social and family golfers. Includes tournaments/leagues, club fitting, lessons, and radarbased metrics.

• Pilates reformer studio featuring Allegro 2 Reformer machines.

• Cardiovascular equipment featuring treadmills, ellipticals, climbers, stationary bikes, and incline trainers, offering virtual training, HDTV, and multiple app integrations.

Dining and Socialization • 1882 - A place to host business roundtables and meet for Affinity Clubs • Olympic Ballroom – An homage to The club’s history of sending athletes to the Olympic Games, featuring ornate carvings depicting all sports played at The MAC from 1882 to 1948 • Grand Ballroom – banquet space for club and private events for up to 300 attendees.

• The Terrace – Amazing rooftop views from this 13th floor dining room hosting upscale New American cuisine (serving breakfast, lunch and dinner).

• The Elephant Room – This historic room features premium, rare spirits, and craft cocktails.

• MAC Kids – This Kids Club provides short-term care for the members’ children, featuring games, toys, arts and crafts.

Upon completion of these capital improvements and a site visit by a Distinguished Club site surveyor, The MAC has been elevated from Exceptional to Elite Distinguished Club designation. B R

RONALD BANASZAK Ronald Banaszak, CCM, CCE, BoardRoom Distinguished Club Executive Vice President of International Business Development. Ron may be contacted at (415) 420-5183 or ron@boardroommag.com.

A History of Excellence: The National Club The National Club, a Distinguished Club since 2022, was founded in 1874 by many of the founding fathers of the Canadian Confederation.

It was home to the Canada First movement – a nationalist group that favored closer ties with Britain, free land to entice immigration, extending voting rights ensuring minority representation, a well-organized Canadian militia, and reforming the House of Commons and Senate.

As the years passed, Canada’s major political parties adopted the Canada First movement’s policies, and the movement disbanded. It had, however, established a lasting contribution in the form of The National Club, which has continued as an apolitical social and business club. When the club moved to its current spot on Bay Street in Toronto, Ontario, in 1907, it was coming “out in the boonies” though it was only a few blocks north. It turned out to be a great decision.

The National Club, in the heart of Toronto’s financial district, is famous for its beautiful heritage-designated clubhouse. It has numerous dining options and multiple exclusive private dining rooms. The club’s expertly crafted cuisine, prestigious 40,000-bottle wine cellar and highly professional staff provide a friendly, relaxed and welcoming atmosphere.

A younger membership (average age of 47) is enjoying upgraded facilities, such as the recently completed major rooftop renovation. In addition to the outdoor dining patio, the club offers a contemporary four-season bar and dining room space with opening skylights and accordion windows. Members can enjoy alfresco dining during the warmer months and use the space during the colder months. It’s the only rooftop dining area of its kind on Bay Street and includes spectacular views of the skyline.

The club prides itself on creating a warm, welcoming, diverse and inclusive club. In addition to a fabulous dining experience, the club offers rooms for overnight stays – six deluxe rooms and a suite, remodeled recently. In recent history, the club hosted a member of the Royal Family in the suite. The esteemed guest commented that the night spent at the club was the best stay experienced during the guest’s visit to Canada.

The National Club is especially proud of its employees. Most clubs offer a beautiful clubhouse, great cuisine and an impressive wine cellar, but the people set The National Club apart. They go above and beyond to ensure excellent member experiences.

“Your staff has this amazing ability to remember your name, and when we bring guests, they demonstrate a level of sophistication that impresses every time!” explained one member.

With a club as well established as The National Club, it comes as no surprise the leadership has a harmonious relationship.

“The COO and president relationship at The National Club has always been excellent because of our progressive board selection process,” said Bill Morari, GM/COO. “By the time a member arrives in the president’s seat, they have extensive board experience and are well versed with a clear understanding of their role.

“The key to maintaining a productive relationship is strong communication skills in keeping the president and board informed on club happenings. In turn, the president ensures the board operates at a high-level strategic approach and not in an operational role, leaving that to the professional management team.”

As for the Distinguished Club designation, Morari said, “It is an amazing accomplishment to be recognized as one of the top city clubs in the world and a huge source of pride amongst members and staff alike. It has validated that we are doing things right at The National Club, and we have earned our place as one of the premier clubs of Canada.” BR

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DISTINGUISHED GOLF DESTINATIONS

Desert Willow Golf Resort

Coachella Valley’s Best of the Best Desert Willow Golf Resort, a Distinguished Golf Destination in Palm Desert, CA, offers two of the Coachella Valley’s best plays.

Test your skills against the natural hazards and myriad water features of the Firecliff Course or play a smoother, more relaxing round on the magnificent Mountain View Course.

The City of Palm Desert, which owns Desert Willow, chose Michael Hurdzan and Dana Fry to design the two golf courses. When the courses opened, they graced, for the first time, the cover of Smithsonian Magazine for their environmental stewardship.

Desert Willow began with a plan that embraced the desert landscape and respected the fragility of natural resources necessary to maintain the course. When the City of Palm Desert hired the design team, it solidified that Desert Willow would be special. With Eric Johnson, a local landscape architect, the design team thoughtfully developed a plant palette that would make Desert Willow environmentally sensitive, unique and picturesque while integrating it with an exceptional golf course design.

Golf Digest named the Firecliff, which opened in 1997, one of the “Places To Play.” Golf Digest said, “This tournament-tested layout is one of only three courses in California and one of the best 50 in the United States to receive this distinction in terms of conditioning.”

Firecliffe was ranked No. 129 by Golfweek Magazine in its “2021 Best Resort Course - Top 200.” The magazine ranked Firecliffe No. 20 in its “2021 Best Courses You Can Play in California.”

Mountain View opened in 1998 and is a resort-type Southern California golf course with wider fairways and limited desert waste areas. But don’t be deceived. Mountain View, measuring 6,913 yards, is rated just slightly less difficult than Firecliff. With more forgiving fairways, 98 well-placed bunkers, sloping greens and seven water features, Mountain View still requires the best from golfers of all levels.

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Although Desert Willow is a municipal facility, guests receive an experience that rivals the top country clubs in the area. Golfers enter the facility on the breathtaking one-mile-long Desert Willow Drive and make their way to the majestic 30,000-square-foot clubhouse. The award-winning golf shop and magnificent practice facility (including the Palm Desert Golf Academy) set the tone for a memorable day.

A big reason for Desert Willow’s success is the longevity of the management team. Continuity matters.

Derek White has held his first GM position for almost 10 years.

He has been with the facility since 2005. White is a certified public accountant (from a past career) and a PGA golf professional. He is a member of the Club Management Association of America and is working toward his certified club manager (CCM) certification.

Francois Gaertner, the executive chef, has thrived at Desert Willow for more than 15 years; Ryan Szydlowski, the director of golf, has been a consistent leader for over 13 years; and Roberta Olden, the human resources director, has been with Desert Willow since opening day.

This continuity has led to high ranks on the golf course, but customer feedback is the truest form of recognition. Desert Willow has consistently ranked in the top 10 percent of national golf courses in net promoter scores, which measure customer loyalty, satisfaction and enthusiasm.

KemperSports manages Desert Willow on behalf of the City of Palm Desert. KemperSports is a privately held sports, entertainment and hospitality company that delivers operational excellence in property and experience management.

“This distinction puts us alongside other great courses around the world,” said White, explaining his feelings about the Distinguished Golf Destination designation. B R

RONALD BANASZAK Ronald Banaszak, CCM, CCE, BoardRoom Distinguished Club Executive Vice President of International Business Development. Ron may be contacted at (415) 420-5183 or ron@boardroommag.com.

The Dunes Golf and Beach Club Ranked No. 1 in Myrtle Beach Area The Dunes Golf and Beach Club, the number one golf course and country club in the Myrtle Beach/Grand Strand area of South Carolina, has an impressive 75year history.

This city (region) is a nationally known golf destination, with the Dunes Golf and Beach Club at the top of the list.

While it is the Robert Trent Jones-designed golf course by the ocean that everyone is hungry for, guests from all over the country reminisce and brag about a wedding, anniversary or event they attended at the Dunes and the exceptional service they received in the oceanview ballroom.

It is impressive that this Distinguished Golf Destination is ranked No. 1 for golf in the Myrtle Beach area, especially when golf is the number one attraction in the area, with over 140 golf courses plus a world-renowned list of public golf courses that are the draw for the World Amateur Golf Tournament hosted in late August through Labor Day weekend.

The Dunes does not have lodging, only because Myrtle Beach already has an abundance of hotel room nights, some less than five minutes from the golf course. The Myrtle Beach area has more hotel room nights than Las Vegas.

The property features tennis, golf, dining, and the ocean view. The men’s and ladies’ private lounges have walk-out decks for dining overlooking the ocean. A superior skilled service staff operates the members’ dining room and oceanside amenities.

In January, the Dunes broke ground on a new beach club complex featuring a 150-seat casual dining restaurant overlooking the Atlantic Ocean. New construction on the coastline has daily/weekly challenges, especially since this is the first major project at the Dunes Club in 20-plus years.

An important part of the culture is to respect and honor those who have served the club.

Honoring the past along with the future is

an ongoing signature of the property. Walking the hallways of the clubhouse is like being at the Dunes Club Museum, with pictures and artifacts honoring generations of members and the legendary history.

Every great property needs a quality and transparent relationship between ownership and management. The Dunes does this well.

“Personally, I have been blessed with a great working relationship with past, present and I’m sure future board presidents. The club has an excellent succession plan, whereas the president has progressed through all executive committee positions. The order is secretary, treasurer, vice president, and then president,” said general manager Gavin Arsenault. A proper and healthy succession plan is paramount to success.

Arsenault also has interesting thoughts on why the Dunes is a Distinguished Golf Destination: “The esteem of being recognized by our peer clubs, with our peer clubs. We look forward to visiting other clubs and showcasing the Dunes Club to other club members that are a part of the Distinguished Club’s family. We want to educate the members on our club and look forward to them visiting the Dunes Golf and Beach Club. This will provide the Dunes Club, our members and staff a significant boost of pride in their club for being honored among the best of the best.

“I’m most proud of being the GM and leader of this historic club and elevating the Dunes Club to another level of excellence with enhanced member amenities that once seemed impossible. We were founded as a daily fee, outside player profile operation, and today we are creating a world-renowned, private club of high distinction for our first-class members and their families. Our mantra of “Members First” has become the foundation of daily life and the culture at the club.” BR

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RONALD BANASZAK

DISTINGUISHED GOLF DESTINATIONS

Ronald Banaszak, CCM, CCE, BoardRoom Distinguished Club Executive Vice President of International Business Development. Ron may be contacted at (415) 420-5183 or ron@boardroommag.com.

The Grand Golf Club A Five-Star Experience

The Grand Golf Club at the Fairmont Grand Del Shawn Cox, general manager and director of golf at The Grand Golf Club, gives his Mar resort in San Diego, CA, is much more than thoughts on being a Distinguished Golf Destination in a focused manner by saying, “We a golf club and an exceptional Distinguished want to be thought of as your bucket list trip of the year. The clubs that you (Distinguished Golf Destination) represent are in that category.”

Golf Destination.

Cox has worked at The Grand Golf Club for 17 years. He has also worked at Torrey Pines This club of beauty, serenity and artful design sits Golf Course and La Jolla Country Club. Cox is proud of the many people he has known for 30 alongside Los Peñasquitos Canyon Preserve. The years in a relatively small area of San Diego.

Fairmont Grand Del Mar’s 249 luxurious guest rooms “I pride myself in professionalism and ensuring I don’t do anything that isn’t how I would are unique and distinctive, with exquisite details and want to be treated. Thanks for the opportunity to be a part of such a great group,” he said. architecture inspired by 1920s icon Addison Mizner.

The Addison restaurant experience is on par with the world’s great restaurants. Having the The Grand Golf Club is a rare find since it is a first and only Michelin Three-star restaurant in the Southern California area overlooking a Distinguished Golf Destination (rated on the golfers’ Fazio golf course is one of a kind. Chef William Bradley offers his distinct culinary perspective experience) at a Forbes Triple Five-Star resort (for through an experience that celebrates regional ingredients and Southern California influlodging, spa and dining). The resort is one of only ences. This Distinguished Golf Destination prides itself on giving exceptional service in a four properties of this caliber in the United States. manner that feels personalized and unscripted.

The unprecedented amenities of the Fairmont Grand The Grand Golf Club also has a creative way of conducting much-needed golf course mainDel Mar enhance the private, right-to-use club (must tenance with as little inconvenience to golfers as possible. It created a 19th hole to allow for be a member or stay at the resort’s lodging). The Grand proper golf course maintenance. The property, open seven days a week, closes one hole at a Golf Club members enjoy access to the Tom Fazio-detime. Golfers use the 19th hole as one of the 18 holes, which allows the club to verticut and signed golf course (18 holes, 72 par and 7,160 yards) top dress fairways once or twice a year. and the exclusive “Members Only” men’s and women’s The forecaddie program at The Grand Golf Club honors a longstanding tradition no longer lounges and facilities at the expansive 50,000-square- found at many golf courses. An experienced caddie guides and assists golfers. The caddie profoot, state-of-the-art clubhouse. vides course strategy, measures distances, fills divots, rakes bunkers, and finds errant shots.

Fazio created a masterpiece in Southern Cal“People love it when you greet them at the range and make sure we are aware of any ifornia featuring dramatic elevations, diverse of their needs. This special touch goes a long way in starting their experience,” Cox said. bunkering and lush fairways, with the stunning Los “Create a reputation for great service and people will want to be a part of your team. Be the Peñasquitos Canyon as his canvas. The Fairmont manager who does the little things to make this place better every day.” BR Grand Del Mar also features a fitness center, four pools, pickleball and tennis.

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BRUCE BARILLA Bruce Barilla provides onsite locker room evaluations, staff training and layout design.

He is the locker room manager for the Barbasol Championship. www.lrcgolf.com

HOUSE COMMITTEE

Reasons for Lack of Locker Room Use … and Solutions I recently communicated with two private country club general managers, and both said the men’s locker room doesn’t get used much.

I will suggest reasons for the lack of locker room use and solutions.

Is there an attendant on duty to offer shoeshine service? Could the main reason for the lack of locker room use be that there is no staff on duty offering each member and guest daily shoeshine service while also keeping the locker room clean, neat and well-stocked throughout the day? One hundred golfers means an opportunity and responsibility to do 100 pairs of street and golf shoes that day.

Having only one attendant working a 40-hour week limits services to only eight hours a day and none on his two days off. Also, the shoeshine room needs to be inside the locker room, with an open greeting counter near the locker room

for them. Although a housekeeper is not the same as an attendant on duty, the housekeeping staff can clean and polish any shoes left in a designated area. It could mean extra income for them if tipping is allowed or if there is a set fee.

Showers can attract users, but excellent water volume and pressure are needed. As a result, full thick wide spray shower heads with no hollow spots become a draw. A massage room and barber shop, both with set hours of operation, are also a draw. Private water closets add a modern touch. Cloth hand towels make paying a locker fee more worthwhile. Having an ice water station can also bring people inside the locker room, along with food and drink service in a sitting area with large flat screens.

Metal lockers instead of wood are not a factor, providing they are in decent condition. Most have more storage space. You can paint them. New carpet and/or vinyl flooring, better (NOT necessarily brighter) lighting and a new interior color all add to the attractability.

A club in the Cleveland area gave a comp guest greens fee with the annual locker fee.

More members rented lockers. Guest play increased. So did the club’s food and beverage income. The annual fee can include a thank-you item, such as a travel amenity kit.

Maybe the simplest solution is to survey the members by asking, “Why do you not use the locker room?” entrance. The attendant must be visible rather than hidden in a room off a hallway. When I worked at Butler National Golf Club and The Greenbrier, we staffed the locker room from before the first golfers arrived to after the last golfers were off the course and serviced.

Location of the locker room, condition, offerings and solutions: Second-story locker rooms are not as common but still function the same. Not every clubhouse design features the parking lot next to the locker room entrance.

Not every locker room leads directly to the first and 10th tee or flows into the pro shop. Some clubs have two-story locker rooms. These are not excuses for lack of use.

If not staffed, the men’s and women’s locker rooms must be clean, orderly and fully stocked with a complete line of quality sink, shower and grooming station amenities. A housekeeper must check the locker rooms numerous times throughout the day so that when a member or guest enters, they can sense everything is as it should be and ready 92

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A starting point: Are you hesitant about hiring a fulltime employee? Consider providing shoeshine service with an attendant on duty a few times a week. Perhaps on busy days? A part-timer is better than no service at all.

Member-guest events with two attendants will give the members a feel for service. Put any gifts for the guests inside their lockers so they will have to enter the locker room.

A club in the Cleveland area gave a comp guest greens fee with the annual locker fee. More members rented lockers. Guest play increased. So did the club’s food and beverage income.

The annual fee can include a thank-you item, such as a travel amenity kit.

Maybe the simplest solution is to survey the members by asking, “Why do you not use the locker room?” Summarize the responses; if you would, please let me know the results. B R

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TODD DUFEK

HOUSE COMMITTEE

Todd Dufek is the locker room manager at The Country Club at DC Ranch in Scottsdale, AZ, and president of the Locker Room Managers Association (www.yourlrma.com). Todd has five books and three training programs to his credit. For a free trial membership and a free book on the secret to improving locker room services, contact Todd at yourlrma1999@gmail.com.

Rookie Locker Room Employees Often Plagued by a Sense of Entitlement For decades, I have hired locker room attendants to work with me in the men’s locker room.

I discovered in hiring rookies, or people in their teens and 20s, that some are plagued with one thing: a sense of entitlement.

What is “entitlement” in a country club hiring context?

It is the expectation by a staffer that the staffer is owed a given privilege without earning it. It is also an overall attitude that “the world owes me” simply because the person was born into it. Obviously, entitlement, as I have defined it here, is unrealistic. It is a skewed view of how our society functions and the person becomes dysfunctional in work and personal relationships.

Let’s look at an example. You need a men’s locker room attendant. After conducting interviews, you select the best candidate and bring him on board. You spend time introducing him to staff and showing him around the club so he knows where to find backup bathroom supplies and amenities. For our example, let us say the person worked for a couple of months in the men’s locker room at another club, so he has some experience.

Within days, the locker room manager finds him sitting in the men’s locker room lounge, watching television and reading the paper. He feels entitled to relax where he pleases, even though the locker rooms are for member and guest use.

As the locker room manager, you ask him to leave and warn him that such behavior could result in his firing. Unfortunately, he does not listen and loses his job within a week.

One final example. When a locker room employee is hired, like others before him, he learns how golf privileges for staffers work. The employee ignores club policy when he hits balls nearly every day and plays when it is inconvenient for staff. It leads you to wonder if he is “wearing a name tag or has a bag tag (shorthand for not being able to tell if the staffer is an employee or a member of the club).”

These stories would make for amusing fiction if they weren’t true. I share them to educate others and express my frustration with my efforts to find young, enthusiastic employees who don’t think working an eight- to 12-hour day is cruel and unusual punishment.

One final example. When a locker room employee is hired, like others before him, he learns how golf privileges for staffers work. The employee ignores club policy when he hits balls nearly every day and plays when it is inconvenient for staff.

It leads you to wonder if he is “wearing a name tag or has a bag tag (shorthand for not being able to tell if the staffer is an employee or a member of the club).”

These stories would make for amusing fiction if they weren’t true.

The training goes well for the first day or two, but then the employee feels entitled to tell you that everything is wrong, from how many towels you have on your shelves to how you set up your shoe room. He bases his opinions on his brief experience as a locker room attendant at another club. Why he would do so during his first week and with little experience or context from which to draw is for another article.

Let us look at another example. Your club hires an outside service worker to handle the usual duties of pulling bags, putting them on carts, cleaning clubs, washing and detailing carts, etc.

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If I had to hire someone to work in our men’s locker room now, I would ask him one crucial question in the interview: “So, as a result of working here, what do you feel you are entitled to?” How he answers that query and others would determine whether or not I hire him.

After 35 years in this business, I can count on one hand those that worked hard, wanted to do an excellent job and never complained about long hours, and they understood from the “get-go” that privileges at any club are earned and not given. B R

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Excellence in Club Governance Excellence in governance is key to success for private clubs. BoardRoom magazine is featuring a series of articles written by Henry DeLozier, a partner with GGA Partners, an international consulting firm and trusted advisor to private clubs, golf clubs and residential communities around the world.

This issue features Managing Your Club’s Waitlist Effectively. Who would have imagined that a global health crisis could or would be generous to private clubs? But it was – with a few notable exceptions. In what one hopes is a post-pandemic setting, most club leaders are reckoning with excessive demand for memberships. Most boards and managers are finding excellent solutions to the new-found demand curve, and from these solutions comes guidance for many clubs, to which a waitlist is alien. Read more on page 98.

Brand Management and Communication. “No one knows what the heck is going on. Communication is very poor around here.” It is a frequent lament of club members during member focus groups conducted by GGA Partners. The desire for greater understanding and insight is as widespread as the pandemic. And the most afflicted souls are club leaders and managers who believe they are constantly communicating. So, who is right?

And who is wrong? Read more on page 99.

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EXCELLENCE IN CLUB GOVERNANCE

Managing Your Club’s Waitlist Effectively Who would have imagined that a global health crisis could or would be generous to private clubs? But it was – with a few notable exceptions. In what one hopes is a post-pandemic setting, most club leaders are reckoning with excessive demand for memberships. Most boards and managers are finding excellent solutions to the new-found demand curve, and from these solutions comes guidance for many clubs, to which a waitlist is alien.

If one believes that the sun doesn’t shine on the same dog’s back every day, it is wise to prepare for the ever-changing demand curve in private clubs. Three important considerations are helpful: (1) managing the club’s waitlist effectively; (2) onboarding new members successfully; and (3) preparing for the inevitable downturn in demand.

Managing the club’s waitlist effectively – Too many club leaders and operators are living in the moment of these halcyon days with the assumption that “Everything is OK now.

We have a waitlist.” Time will prove these club leaders wrong in most cases because members are the lifeblood of a private club. Thus, clubs must replace aging members with eager new members.

Most clubs were ill-prepared for the COVID-driven demand for memberships and – while delighted with the lifesaving new members – most club leaders were in reactive mode. Those who played catch-up well discovered and revealed an assortment of good ideas that are becoming best practice standards for many clubs: 1. Calculate your club’s annual attrition rate and project the replacement cadence required to keep your club on solid financial ground. Membership attrition is historically a factor of life events such as mortality, relocation, and changes in access to capital.

2. Streamline your new-member application process. Secure and activate established customer relationship management (CRM) capabilities. Make it easy for prospective members to learn about your club and remember that much of this “learning about the club” process is online and in absentia. Your club must think like someone who is becoming acquainted with the club and not like someone familiar with it. CRM will make navigation easy.

Update frequently asked questions regularly. Follow up on every inquiry. Graciousness is an effective first impression.

3. Engage prospective members in bespoke events that help them to understand your club’s culture. Develop a schedule of waitlist events that enable aspiring members to learn about your club’s programs, people and culture. It is more than “showing off.” Demonstrate what makes your club exceptional and show why wise souls before them awaited the opportunity to join the club.

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4. Maintain a steady drumbeat of communications with those who have been waiting to join your club to assure them they have not been forgotten.

Most clubs will work through existing waitlists and soon be eager to welcome more candidates. Don’t fall behind the demand curve.

Onboarding new members successfully – Research by Pew Research Center brings data to the long-held notion that the zeal of converts is real. In a 2009 study, Pew found that converts are more faithful to their newfound beliefs than those born to them in every category measured. Tap into new members’ zeal to be a part of your club.

The most common reasons private club members state when asked why they joined a given club are: (1) “the people I know to be members”; (2) the overall status and quality of the membership; and (3) the high quality of amenities and events.

Provide new members with the socialization platform they seek. Invite them to parties that help them to: • Meet other new members, club leaders who serve on the board and committee members • Learn about your club’s history and popular events • Experience the facilities’ usage and staff performance for themselves.

Make it personal. Use these three tactics to help existing members get to know new members: • Provide brief biographical descriptions of new members.

Let existing members see the high quality of the club’s next generation.

• Build individual profiles for each member. Identify each new member’s interests and facilitate their introductions and inclusion into established club programs, groups and activities.

Sometimes existing members can be indifferent to new members. Club leaders must assume responsibility for bringing new members on board successfully.

• Send brief online “postcards” to candidates becoming new members to maintain their interest while educating them about the club.

Preparing for the inevitable downturn in demand – The current imbalance of demand and capacity will evolve. Recognize that reality and do not assume that current demand is sustainable. If it is sustainable, it will be good for you. Otherwise, the day will come when you need more members, and board members are responsible for attending to your club’s economic durability.

Keeping waitlist candidates interested and engaged is a proven priority for leading clubs. B R

HENRY DELOZIER Henry DeLozier is a partner at GGA Partners.

He can be reached via at henry.delozier@ggapartners.com

Brand Management and Communication “No one knows what the heck is going on. Com- board members are not telling their spouses and golf partners what they discuss in board meetings. Of course, one should expect board members to munication is very poor around here.” hold themselves to the high standards of confidentiality one expects from It is a frequent lament of club members during corporate boards. member focus groups conducted by GGA PartUntil private club boards achieve the confidentiality requirements of corners. The desire for greater understanding and porate boards, club board leaders should be absolute in their commitment to insight is as widespread as the pandemic. And do all they say they will do. More importantly, club leaders should not hatch the most afflicted souls are club leaders and alternative or “secret” plans. Assume that every board meeting is a public managers who believe they are constantly commeeting. municating.

Your fellow club members assume the board does not tell them about all So, who is right? And who is wrong? board activities and actions. A crucial first step for club leaders is to show The key is to understand brand and brand that the board is unfailingly truthful. management. First, your club’s brand is in everything it does – and fails to do. Club leaders 3. Redundancy using multiple media – Many club members do not do well to consider their club – and club leadhear the board’s messages when they are first shared. Messages require ership – as an exercise in brand management. repetition. Clubs have many communication tools, from word-of-mouth to It requires club leaders to be intentional when electronic media to posters and flyers. Use them all to keep your members establishing club values and adhering to them. informed. Assume that last week’s email blast should be this week’s poster Some questions for your club to consider are: campaign and next week’s direct mail piece. Redundancy becomes effective • What is your club’s brand? because it is harder to ignore.

• What are your club’s core values?

The standards of best practices in club communications are evolving. Club • How does your club enact those values? leaders who truly wish to communicate must be tireless in their efforts.

Your board’s communications and engagement with members must accomplish four keys: 4. Monitor the effectiveness of communications – Electronic communications are traceable and enable your club to know which media are effec1. Relevance – Your club’s messaging must tive and which are not. Further, simple keyword searches with Google and be relevant to your members. Do you track other media provide insight into what captures your members’ attention. members’ pickup on club communications? How The keys to effective communication and transparency are repetition using many people open club communications? How multiple media. many members read your president’s letter in the newsletter or on the club website? How releWhat have we learned thus far? vant is your club to your members?

1. Members are eager to have improved communications, which requires a The answers to these questions speak to enproactive approach. gagement, which is highly measurable. Clubs can 2. Repetition is essential to keeping members well informed. track engagement by noting how many members 3. Better-informed members believe their club is transparent. participate in member events and how quickly 4. Members desire and expect better communication. the member-guest events fill up. You can quantify engagement with today’s communications Warren Buffett, CEO of Berkshire Hathaway, said, “It takes 20 years to science. It is a primary concern for boards seekbuild a reputation and five minutes to ruin it. If you think about that, you’ll ing to make their work relevant to members. do things differently.” Club leaders do well to listen to Buffett. BR 2. Honesty – Club boardrooms leak like a sieve. It is foolish to believe that your fellow

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Rob DeMore

John Fornaro Impact Award Recipient

By Julia Kelly

It is my privilege to profile Troon Executive Vice President Rob DeMore as a recipient of the John Fornaro Impact Award. Rob shares this honor for 2022 with Carmen Mauceri, general manager of the Club Mediterra, Naples, FL. The John Fornaro Impact Award recognizes leaders in the club industry annually.

“Both Rob and Carmen are people who demonstrate strong business skills and creative approaches, a willingness to take risks, engage others and who face ambiguity with enthusiasm,” expressed BoardRoom’s publisher and CEO John Fornaro in recognizing their many contributions to the private club industry.

“They also demonstrate innovation and we believe this is a significant characteristic of their contributions to the industry over the years.”

Leader of Troon’s private club division, Rob is the second Troon associate inducted since 2020, when Troon resident and CEO Tim Schantz was named the winner in the award’s inaugural year.

It has been my pleasure to work closely with Rob, and for the last 12 years, I’ve witnessed his far-reaching positive impacts on Troon as a whole, our Troon Privé team, hundreds of private club owners and associates and throughout the private club industry.

Known for his operational expertise, intellect, creativity and curiosity, he has a blend of skills and traits that is nearly impossible to replicate.

“It’s fair to say that Rob helped to create, and has sustained, the market segment comprised of third-party management of member-owned/ controlled private clubs,” explained Schantz. “It is a challenging and demanding environment, but Rob and his team have ‘cracked the code.’”

Troon Senior Vice President Phillip Martin added, “Rob leads with the unique perspective that a balanced approach must be present in order for a club to function properly, and he understands that sustainability is comprised of member satisfaction, healthy financials, and a great management team.”

Over the years, DeMore’s most significant developments initiated have included championing the Moments Matter campaign during the height of the global pandemic, supporting the growth and development of Troon Privé Privileges, as well as promoting the use of Net Promoter Score and best practices in strategic planning and governance.

CONTINUOUS LEARNING

With five children ranging in age from three to 30, DeMore makes family his priority while maintaining a state of continuous learning and growth. He grew up in Tucson, Arizona and at the age of 100

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eight, first honed his golf knowledge and entrepreneurial abilities by gathering and reselling range balls with buddies.

As a teenage baseball ump, he learned that “Everything you do can and will be criticized, but a split-second decision must be made. There can never be no call.”

While pursuing degrees in economics and political science, he worked the front desk taking phone reservations at the Hotel Park Tucson. Once ownership recognized his astute analytical abilities, they moved him into the role of revenue manager to (manually) analyze customer activity and identify micro trends that could be used to project rates for the next 90 to 120 days.

This responsibility of maximizing revenue streams taught him how to recognize the details that compelled a hotel guest to pay more. Years later and well into his career with Troon, he provided an associate in her first role at a private club with an important glimpse into the hospitality experience.

“We walked the premises as if we were members,” recalled Joelle Creamer, then with Manchester Country Club in Bedford, New Hampshire. “Together, we decided where the opportunities for improvement were, even in the smallest of details like filling the shampoo and conditioner bottles to the top, folding the towels properly and adding flowers to the host stand.”

DeMore’s opportunities in the hospitality industry expanded significantly once Starwood purchased the Hotel Park Tucson. He eventually landed in operations at Ventana Canyon, a 50-room hotel with a 36-hole golf club managed by Troon.

Rob officially became a Troon employee in 2003 when he became the general manager of Whitetail Club in McCall, Idaho. Three years later, he moved into the GM role at Entrada in St. George, Utah. These appointments allowed him to work with two individuals he credits with teaching him unique lessons that remain with him today. “’Papa’ Doug Manchester, developer of Whitetail and The Grand in La Jolla, California, and Brent Beesley of the Entrada Company could see the vision in a piece of land. Instead of taking things away, they added beauty to everything they touched, making every place better than how they found it,” DeMore explained.

In 2008, DeMore joined the private club operations team in Troon’s Scottsdale corporate office under the mentorship of Jim McLaughlin (affectionately known at Troon as ‘J-Mac’), then President of Troon Privé.

“Jim inspired me to be an inclusive leader because he gave us the space to do our work and the confidence to be ourselves,” said DeMore. “He identified and then leaned on our individual strengths and compelled us to do more by being attentive and responsive.”

McLaughlin’s move into the role of President of Troon’s True Club Solutions division eventually led to DeMore being named President of Troon Privé.

DeMore is an enormous thinker, always seeing the strategy and long game in addition to the details. However, his definition of success is the staying power derived from building and maintaining long-lasting relationships.

He immediately engenders loyalty as he quietly extracts excellence, and he gives it back. DeMore is a leader who truly cares – about the clubs, about successful outcomes and, most importantly, about people.

“People matter and their career journey is important to me,” said DeMore. “I am most proud of the people we’ve been able to attract and how we’ve multiplied. By sharing this journey, we collectively give it meaning and perspective.”

Unusual in an industry steeped in tradition, DeMore is consistently open to new and different ways of thinking.

“You never have to be afraid of tossing an unconventional idea into the mix,” explained Troon Senior Vice President Bill O’Brien. “He encourages thinking and

creativity – and even failure – in order to help an individual become part of a solution organically. As a result, the lesson learned provides the reference points people need to activate when the circumstance might return.”

DeMore is also well known for his biting wit and amiable humor. Schantz noted, “Rob recognizes absurdity and pathos in equal measure and he and I have had some uncontrolled laughing sessions. That can make serious things a bit less serious (freeing up the ability to reach creative solutions) and makes work fun.”

Indeed, it’s never not fun when Rob DeMore is around.

Even when tackling the most serious of problems, he always seems to lighten up a room and his positive energy and outlook is contagious. Co-workers especially enjoy watching the sheer joy he takes in asking seemingly random questions to the topic at hand, and then assimilating information that turns out not to be so disconnected.

So, what lies ahead for this illustrious leader?

“Our business has gotten even more complicated since the pandemic and it seems lower levels of member trust have dulled the senses of even the best general managers.

There are many openings, but not as much interest from the younger generation to step into such a demanding role,” explained DeMore.

His best advice?

“Do one thing for yourself every day; avoid false assumptions by asking questions before spewing unsolicited advice and let things roll off your back. If you carry your light within, other people won’t be able to steal your power.”

“Rob is a unique executive who combines strong financial acumen and skills in client service with a personality that attracts people,” Schantz added. “An organization needs all sorts of people and a certain DNA to create and maintain a special culture. Rob is both a leader and a colleague. Troon is fortunate that he chose this company within which to build his career.”

“J-Mac” summed it up another way. “I especially love the way he catches people off guard after spending their first 15 minutes with him. They usually go from a skeptical, ‘Who is this guy?’ to a mind-blowing, ‘Who is this guy?!’

But that’s just Rob being Rob. He’s our guy… and thank goodness for that because we wouldn’t want him on the opposing team.” So many good reasons for his selection as a recipient of the John Fornaro Impact Award for 2022! BR Julia Kelly is vice president sales & marketing – Troon Privé. She can be reached via email: jkelly@troon.com

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Carmen Mauceri

John Fornaro Impact Award Recipient Special to BoardRoom

Carmen Mauceri’s impact on the Club at Mediterra is evident from the moment you arrive on the property.

The eminent facilities, attention to detail, and commitment to quality at the Naples, Fl, private club are consistent with the finest hospitality experiences in the world. However, you see the real impact of Mauceri’s leadership as the club’s general manager in his team’s energy, enthusiasm, and execution – it is evident that team members love working at Mediterra.

The John Fornaro Impact Award goes to those in the industry annually who demonstrate leadership qualities, innovation, strive for excellence and have an impact on the private club industry.

“These outstanding qualities are the reasons why Carmen has been selected as one of two recipients for this award in 2022,” explained John Fornaro, BoardRoom magazine’s publisher and CEO. Troon Executive Vice President Rob DeMore also received the John Fornaro Impact Award for 2022.

Some would say the health of an organization in the private club industry is measured by member engagement, a full roster and those who refer their friends. While these are absolute pillars, Carmen and his team are equally focused on developing the workforce values of tomorrow.

“It has been said, ‘To win the marketplace, you must first win the workplace.’ I believe that to successfully achieve that position in today’s market, you must become more than a brick-and-mortar environment.

“Your strategy for success must be dual-purpose and include your team.

They need to feel the same level of hospitality your members do when entering the club. This has been a passion of mine for as long as I can remember and will continue to remain a north star for me,” said Mauceri.

Throughout his time at Mediterra, Carmen has been a thought partner to the membership, an influential leader to the team and has reimagined the workplace culture.

When a few of his teammates were asked to describe how Carmen’s contributions have impacted Mediterra, there were several common themes throughout their responses: “Carmen’s vision and guidance are what have helped create a positive work environment and a sense of purpose for our employees.”

“From recruitment and onboarding, to celebrating the highest tenure, Carmen is deeply committed to ensuring the team knows how much they are valued.”

“He thinks of the team as family and makes time to interact with everyone.”

“You can gauge how the team feels about Carmen’s leadership by the lack of turnover we have and our desire to remain as a unit.”

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MIKE STRAUSS Mike Strauss is GCSAA’s media relations manager. For more information about Thank a Golf Course Superintendent Day, visit gcsaa.org/thank-a-golf-course-superintendent.

GREEN COMMITTEE

An Inside Look GCSAA Foundation powers your environmental stewardship, innovation and community outreach. Creating the best playing conditions while keeping golf sustainable for future generations.

Every day, your superintendents and their teams go to work before sunrise to create playing conditions for an enjoyable round of golf. But superintendents are more than people who ensure your members have great courses to play. Superintendents are essential to golf’s overall success. They are environmental stewards, agronomists, government advocates and more.

Nearly 20,000 members of the Golf Course Superintendents Association of America know that without a golf course, there is no game or business of golf. Through their essential role in golf’s success, GCSAA members continually implement the latest approaches to turf grass management while applying environmentally sound approaches to ensure your golf course is a good community neighbor.

This work goes beyond the course. GCSAA members are good community neighbors with programs such as GCSAA’s First Green. First Green brings children from local schools to the golf course for hands-on STEM (science, technology, engineering and math) education field trips. First Green field trips have taken place across the US, and GCSAA’s program has expanded to Canada, the UK and Australia.

The GCSAA Foundation, formed in 1955 as the philanthropic arm of the GCSAA, powers the success of superintendents.

It funds research, advocacy and best management practices that enable superintendents and their teams to create a platform to keep golf sustainable for future generations.

With funding from the GCSAA Foundation and USGA, GCSAA recently completed the third phase of its Golf Course Environmental Profile, a groundbreaking project launched in 2006 to develop a comprehensive environmental profile of golf courses in the United States.

The latest GCEP reports show that golf courses have been applying fewer inputs since the GCEP began in 2005. According to the studies, nitrogen use is down 41 percent, phosphorus use is down 59 percent and potassium use is down 54 percent since 2005. In addition, golf courses in the US saw a 29 percent reduction in water usage in 2021 compared to 2005.

GCSAA’s advocacy efforts help give the golf industry a voice at all levels of government. From National Golf Day on Capitol Hill to statehouses and city council chambers across the country, the story of golf is being told. Currently, 510 GCSAA members have established one-on-one connections with members of Congress through the GCSAA Grassroots Ambassadors program to discuss key issues, like water, labor and inputs.

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GCSAA’s best management practices initiative spearheaded the drive to create state-specific golf best management practices in all 50 states, accomplished in 2020.

The current phase of the initiative involves facilities using their state guidelines and GCSAA’s BMP Planning Guide to establish facility-specific best management practices guidelines that help your superintendent manage your club in a manner that minimizes impacts on the surrounding environment. A facility BMP can help elevate your club’s reputation and strengthen golf’s position when securing the valuable resources necessary to run your operation.

Leading the charge for the GCSAA Foundation is Mischia Wright, director of development. For the last 23 years, Wright has been a major part of GCSAA’s efforts to secure funding for research, advocacy and best management practices.

These efforts help golf courses be environmental, recreational and economic assets in their communities. Wright doesn’t just work for GCSAA. She works for the entire golf course industry because without a golf course, there is no game or business of golf.

“My goal is to secure funding that enables superintendents, equipment managers and their teams to deliver the best playing conditions possible while remaining environmentally friendly, sustainable and good community neighbors,” Wright said.

Why is it important to donate to the GCSAA Foundation?

Wright’s answer digs deeper into why the industry, golfers and others should support GCSAA’s causes.

“What would you do if golf went away? How many organizations utilize golf courses to raise money for their causes? We need to continue to provide tools to our superintendents to support sustainability so that others can raise money for their causes,” she said, noting that more than $4 billion is raised annually for charitable causes through the game of golf.

While Wright reaches out far and wide to secure funding, her passion for the golf course maintenance industry also resonates with her household.

Her son, Austin, grew up learning about GCSAA and the profession from his mother’s work. Austin is now a 15-year GCSAA member and a certified turf equipment manager who has presented at the annual GCSAA Conference and Trade Show and was recently named head equipment manager at Hazeltine National Golf Club in Chaska, MN, a suburb southwest of Minneapolis.

To learn more about the GCSAA Foundation, visit https://www.gcsaa.org/foundation B R

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

GREEN COMMITTEE

Necessity Forces Change Why don’t we change our thinking about aerification and other agricultural practices?

Government properties a few years ago, including all sports turf areas, golf, athletic fields, etc., had to reduce water and chemical usage by 20 percent. With some adjustments, the program was very successful.

The program’s success will play an important role for private properties, especially golf courses, because of the amount of land involved, if for no other reason. Understanding and balancing physical properties achieves this reduction in chemical and water use, all while improving turf health.

Physical properties are the foundation of effective use of chemicals and water.

The need to use physical property assessment for our agricultural practices has always been there. However, we as MASTER PLANNING

ARCHITECTURE

an industry (sports turf) have elected to put the information about physical properties on the back burner because there are no classes taught in our colleges and universities on physical properties and the role they play in establishing and maintaining healthy turf. It is not the fault of our colleges and universities because the true knowledge of the physical properties of sports turf did not emerge until a research center dealing only in physical properties research was established in 1990.

This physical property research developed into a field separate from the science of soil chemistry.

To maintain healthy turf, we must understand all three properties: physical, chemical and biological. The physical portion of the three properties dictates in total how the other two, chemical and biological, will function. The physiSEE PUBLISHER’S PERSPECTIVE | 125 INTERIOR DESIGN

PROCUREMENT

Ridgewood Country Club, Paramus, NJ

DESIGN AND ARCHITECTURE FOR PRIVATE CLUBS & HOSPITALITY PETER CAFARO PCAFARO@JBD-JGA.COM 401.721.0977 SEPTEMBER / OCTOBER 2023 | BOARDROOM

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EDWARD YODER Ed Yoder, CPA, MSA is a tax partner with PBMares, LLP in its Harrisonburg office. He may be reached at (540) 434-5975 or by email at eyoder@pbmares.com

CLUB FACTS AND FIGURES

Updated UBTI Expense Allocation Method for Social Clubs and Tax-Exempt Organizations Selling food and beverages to nonmembers. Green fees. Advertising in newsletters. Pro shop sales. These are common activities that generate unrelated business income for tax-exempt social clubs.

Final regulations for calculating unrelated business taxable income mostly kept in line with earlier proposed regulations.

The final regulations change the way that exempt organizations must calculate unrelated business taxable income (UBTI) when there are multiple unrelated business activities.

Background: On December 22, 2017, Congress passed the 2017 Tax Cut and Jobs Act (TCJA), which included a new code section 512(a)(6) requiring that exempt organizations silo net operating losses NOLs by separate unrelated business activity. Section 512(a)(6) requires an organization with more than one unrelated trade or business to calculate UBTI separately with respect to each trade or business.

Congress intended that a deduction from one trade or business may not be used to offset income from a different unrelated trade or business for the same taxable year.

Proposed Regulations: UBTI for Tax-Exempt Organizations: In April 2020, the IRS issued proposed regulations on how exempt organizations were to calculate UBTI and allocate expenses.

The proposed regulations noted that exempt organizations should use the first two digits of the NAICS code for classifying unrelated trades or businesses.

Examples of classifying separate UBTI activities include: • Food & Beverage activities (722511) • Room and Lodging activities (72110) • Golf (713910) • Tennis (713940) • Swimming (713940) • Golf Pro Shop retail sales – Sporting Goods Retailers (459110) The proposed regulations also note that the unadjusted gross-to-gross allocation method is not a reasonable method for allocating all expenses. It has been common practice for social clubs to use the gross-to-gross method for allocating expenses to nonmember activities. If the club has $1 million in total receipts and $100,000 came from nonmembers, the club would allocate 10 percent ($100,000 / $1,000,000) of all expenses that related to the activities (food & beverage and golf, tennis, swimming activities) that generated nonmember revenues as a deduction in arriving at unrelated business taxable income. The IRS regulations no longer allow the grossto-gross method for allocating all expenses.

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Allocating Expenses for Social Clubs: IRS Regulation 1.512(a)-1(c) promulgates where facilities are used both to carry on exempt activities and to conduct unrelated trade or business activities, expenses, depreciation and similar items attributed to such facilities shall be allocated between the two uses on a reasonable basis.

Similarly, where personnel are used both to carry on exempt activities and to conduct unrelated trade or business activities, expenses and similar items attributable to such personnel shall be allocated between the two uses on a reasonable basis.

The IRS has generally classified expenses in three categories as follows: Direct Expenses that increase in direct proportion to the volume of the activity and not incurred otherwise, such as cost of goods sold or expenses incurred for specific events. For example: extra labor, perishable decorations, and entertainment for a specific event. Direct expenses incurred for specific events are deductible in full from the event receipts and therefore need no allocation.

Variable Expenses that vary in proportion to the actual use of the facility but can’t be identified with a particular activity, such as salaries, utilities, maintenance, cleaning, uniforms, laundry, telephone, postage, printing, and professional fees.

Fixed Expenses that don’t vary in proportion to the actual use of the facility, such as depreciation, interest, real estate taxes, property insurance, and permits.

One method of allocation frequently used is allocating all three expense categories based on gross receipts, commonly referred to as the Gross Receipts Allocation Method. This method is generally not considered reasonable to allocate variable or fixed expenses when members and nonmembers pay different amounts.

The Gross Receipts Allocation Method is not reasonable for allocating expenses if the fees for using the facility are included in the members’ dues.

The IRS issued the Action on Decision on Rensselaer, A.O.D. 1438 in June 1987, where it continues to take the position today that under the circumstances described in Rensselaer where the dual use of the facility was near maximum use, fixed expenses should not be allocated based on actual usage.

The IRS contends an allocation based on the total available time is the method of allocating fixed expenses that meets the reasonableness standard of Treas. Reg. 1.512(a)-1(c). Specific issues should not be litigated until the “reasonableness” test of Treas. Reg. 1.512(a)-1(c) is amended.

Final Regulations: Allocating Expenses and the Reasonableness Test: By issuing new UBTI regulations, the IRS is amending the reasonableness test of Treas. Reg. 1.512(a)1(c). The proposed regulations note that the IRS had previously indicated that it will not litigate the reasonableness of the allocation method in Rensselaer pending revision of the Treasury regulations.

However, regarding facilities or personnel that are used both to carry on exempt activities and to conduct unrelated trade or business activities or more than one separate unrelated trade or business, the Treasury Department and the IRS have concluded that allocating expenses, depreciation, and similar items using an unadjusted gross-to-gross method of allocation uses a ratio of gross income from an unrelated trade or business activity over the total gross income from both unrelated and related activities generating the same indirect expenditures.

The percentage resulting from this ratio is used to determine the percentage of the shared costs attributable to the unrelated trade or business activity, or activities.

In some circumstances, the provision of a good or service can be both related and unrelated depending on to whom the good or service is offered.

For example, with respect to social clubs, the provision of goods and services to members is an exempt function whereas the provision of the same goods and services to nonmembers is a nonexempt function.

If the social club charges nonmembers a higher price than it charges members for the same good or service the gross-togross ratio will increase, resulting in more indirect expenses being allocated to the unrelated activity.

Accordingly, failing to adjust the price of the good or service offered to nonmembers or the general public for purposes of determining the allocation of indirect expenses overstates the percentage of the indirect expenses that should be allocated to the unrelated activities.

The new proposed regulations from the IRS provide that the unadjusted gross-to-gross method is not reasonable, whether under the general allocation rule or as incorporated for section 512(a)(6) purposes.

Action Needed: Revise UBTI Calculation Worksheets: Action is needed now to re-engineer most clubs’ unrelated business income calculation worksheets.

PBMares works with clubs to: • Separate trial balance accounts into Direct, Variable, and Fixed expense categories, then • Determine the method for allocating each category against unrelated business activity. > Direct expenses: the gross-to-gross method would still be appropriate. > Variable expenses: the ratio of estimated nonmember use hours to total facility use hours should be used.

> Fixed expenses: the ratio of estimated nonmember use hours to the entire hours in the tax year would be used.

Where previously PBMares may have just asked for the amount of nonmember revenue by activity and the number of nonmember revenue days, clubs will now need to supply more information to calculate unrelated business taxable income on Form 990T. And there will need to be an estimate of nonmember use hours for each nonmember revenue activity.

To estimate nonmember use hours, the club will need to determine the number of days there were nonmember revenue (by each activity), the amount of total revenue generated on those nonmember revenue days, and the number of hours each facility was open on those nonmember days.

Revenue notes by area: • Golf revenues may need to allocate UBTI using the number of nonmember rounds in relation to the total number of rounds played.

• Tennis revenues may allocate UBTI using the number of nonmember matches in relation to the total number of matches played.

• Swimming pool revenues may base UBTI on the number of nonmember visits compared to total pool visits.

In the IRS’s Big Divot Country Club example, they estimated nonmember use hours by taking the following steps: • Step 1: Determine the hours of operations when nonmember use occurred by multiplying the number of days of nonmember use by the number of hours of operation. > 25 days of nonmember use x 14 hours of operation = 350 hours of use on days of nonmember use • Step 2: Estimate the number of nonmember use hours by assuming the time that members and nonmembers use the facility were reflected by the volume of sales during the same time period. Therefore, nonmember use is estimated as follows: > $25,000 nonmember revenues / $100,000 total receipts on days of nonmember use = 25 percent > Then, determine the estimated hours of nonmember use by multiplying the hours of operation on days of nonmember use by percent of nonmember use based on the ratio of nonmember receipts to total receipts on days of nonmember use.

— 350 hours of use on days of nonmember use x 25 percent of nonmember usage = 87.5 estimated hours of nonmember use It has been common practice for clubs to allocate nonmember expenses using the unadjusted gross-to-gross method.

With these new IRS regulations, the unadjusted gross-togross method is no longer a reasonable method.

Clubs will need to develop new schedules to allocate expenses based on the actual usage method. This will take additional data inputs and will ultimately reduce the amount of expenses allocable to unrelated business taxable income from nonmember activities.

These new regulations are effective for tax years beginning after December 2, 2020. B R SEPTEMBER / OCTOBER 2023 | BOARDROOM

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BoardRoom Comments In the July/August issue of BoardRoom, we published a story (Club Board Members Change, Core Values Should Not) by Dan Kaplan, president of the Polo Club of Boca Raton.

Since its publication, some of our readers, including general managers, have taken issue with this story because they feel the Polo Club’s Board is infringing upon management’s territory and micromanaging the club’s daily operation.

Since its inception, BoardRoom magazine has believed in and advanced the concept that private clubs should operate under the spirit of collaborative governance, with the board of directors setting policy with senior management implementing the policies and handling the club’s day-to-day operation.

So, what are the responsibilities of a private club board...and those of the general manager?

The board’s role is strategic...to set down the vision, mission and under the guidance of the club’s general manager, chief operating officer and/or chief executive officer, develop a strategic plan and then get out of the way to allow the club’s senior management to handle the day-to-day operations, including implementing the club’s strategic plan.

However, Kaplan’s story may be interpreted, BoardRoom stands by its philosophy of the board setting policy and senior management implementing those policies.

The board’s energy should be focused on developing and training the next generation of the club’s leaders, including committee members and chairs, and not the club’s daily operations.

BoardRoom’s Distinguished Club representatives visit more than 200 clubs a year...clubs at which the board’s role is strategic while leaving the daily operations to the club’s senior management.

This is the philosophy initiated 27 years ago with the inception of BoardRoom magazine and a philosophy we believe in and adhere to today!

John G. Fornaro, publisher

Dave White, editor

Heather Arias, associate editor

Comment from Kurt Kuebler, Partner Kopplin, Kuebler & Wallace Regarding the recent article entitled “Club Board Members Change, Core Values Should Not”, I feel compelled to provide some alternative views and perspectives to some of what was outlined.

Firstly, the writer is on target in that many clubs view a strategic plan as ‘what are we going to build next’ versus a true foundation plan covering multi-faceted areas of the club’s business model and its continuous evolution.

So, too, is the need to annually identify SWOT elements that allow for the creation of both major objectives and tactics to address them.

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Where our views differ is in what appeared to be the granularity of focus on deep operational elements within club operations. Our firm has rarely (make it never) seen a club with “100 specific action plans for our management team” be successful and getting that granular very likely could cause boards and committees to LEAP over the line of governance/policy/strategic focus to incredible minutiae of operations and blurring the line of oversight to actual operational direction. ➤

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These are things that most high-performing clubs do a good job of keeping separate and distinct.

Our experience is that the board sets the ’North Star’ — clearly defining mission, vision and core values — and then lets the leadership team, led by the GM/COO, develop the tactics to support those objectives.

Further, the board tasks committees with undertaking study, evaluation and eventual recommendation on various policies and bigger picture evaluations, but not granular operational tactics, which are the responsibility of the leadership team under the GM/COO. As the article suggested, the board should be identifying risks and issues, but clearly separating operations from policy/governance is critical for long-term success.

As the writer noted, clubs should not go through annual revolutionary changes and radical agendas should not be allowed to change core values, mission and vision regularly.

But we are guessing that some senior leaders reading the article may have had heartburn over the suggestion of “100 action plans” for operations being given to them by well-intended volunteers.

Operations should be led by the professional staff with the board’s direction; in our experience, not doing so is likely the foundation for dysfunction and a blurring of the lines of responsibility that plagues many clubs in this industry.

The idea of the board setting overarching strategic objectives is a good one; separating operations from policy/ governance in this effort is more likely to result in greater success and achievement.

Moreover, the staff will almost certainly ‘own’ and be accountable for outcomes if they develop the objectives for achievement rather than having volunteers create their action plans. B R

Comment from Larry Savvides, CCM, CCE, CAM COO, Hunters Run Property Owners Association, Boynton Beach, FL In the July-August publication of BoardRoom magazine, an article written by the President of a club in Boca Raton that advised of their board’s practice to include 100 operational action plans in their strategic plan.

This practice is counterproductive and indeed transgresses into the domain of micromanagement. It is critical to maintain a distinct separation between the strategic oversight responsibilities of the board of directors and the operational duties entrusted to the general manager and their team.

A strategic plan, by its very nature, should encompass a broader vision, delineating long-term goals and the overarching strategy to achieve them. The inclusion of myriad operational action plans not only clouds this strategic vision but also encroaches upon the general manager’s sphere of influence and expertise.

It is the general manager who, having a close working relationship with department leaders and is entrusted by the board, is suitably responsible for developing and implementing operational plans, guided by the strategic direction set by the board.

Moreover, a dynamic and responsive operational environment necessitates a certain level of agility and flexibility, which can only be achieved when there is trust and delegation of authority. The general manager needs to have the autonomy to adapt and respond swiftly to the rapidly changing

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business ecosystem, which can be hindered by a rigid adherence to a multitude of predefined action plans.

The multiplicity of a board delving into operating plans could potentially foster an environment of mistrust and uncertainty for the general manager. It essentially undermines the expertise and leadership of the general manager, which can have deleterious effects on the team’s morale and can further entangle the board in daily operations, diverting its focus from strategic matters of pivotal importance.

To foster a culture of trust, efficiency and responsibility, it is incumbent upon the board to restrict itself to providing a strategic blueprint while empowering the general manager to navigate the intricacies of daily operations adeptly.

This not only upholds the delineation of roles but cultivates a collaborative and harmonious working relationship between the board and the general manager, ensuring sustainable and successful business operations.

The article rightly champions the necessity for a strategic plan to remain just that - strategic, allowing for the expert management of daily operations by the designated manager, thereby safeguarding the organization’s broader vision while nurturing expertise at the operational level. BR

Can Anyone With Money Get Into Your “Exclusive” Private Club?

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WITHOUT KENNIS, THEY LIKELY CAN! If your club isn’t engaging a professional intelligence gathering firm to provide deep, detailed information about your prospective members, you are undoubtedly letting in new members you shouldn’t!

Implementing fact-based applicant vetting into your current approach is new to many clubs, but has quickly become the industry best practice. For the first time, clubs can make fully educated membership decisions.

Real protection for the club’s reputation Verify candidates are a good fit • No more surprises Reduce dangerous and problematic members Meet the board’s duty of care • Increased safety The world has changed, call us today • 888.318.1480 • MemberVetting.com SEPTEMBER / OCTOBER 2023 | BOARDROOM

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MONTE KOCH Monte Koch is a PGA-certified professional, CIC, a career coach and consultant/certified interview coach and a certified predictive index practitioner. He is based in South King County, WA, and can be reached at (206) 335-5260 or via email: mkoch@pgahq.com

EXECUTIVE COMMITTEE

Maximize Your Soft Skills to Make Success Likely in Hard Times We have had nearly four consecutive years that have been incredibly successful in terms of rounds, participation and revenue.

At the same time, they have been “grinding” and wearing on PGA, CMAA and GCSAA professionals and staff at our facilities, – not to mention on our volunteer board members.

“Feeling the burn” has taken on a new meaning indeed.

Coworkers, vendors, supervisors and customers are under the same stress level. The burdens are different, but the weight of the stress is the same for all of us.

In this environment, everyone is “bathing in stress,” doing the hard work with soft skills versus the easy work that comes naturally to each of us.

For these “hard times” that may soon be full of hard choices, I share the following to help you focus on the hard work to make “team success” and individual professional success more likely: Hard work (for the sake of the team, the facility and your “enlightened self-interest”) • Self-awareness (versus self-centered focus) is difficult, but you can monitor emotions, feelings and thoughts and measure their effect. Lying in the “story we tell ourselves” is a mistake. This “self-serving bias” when we look at what happened in any given situation is defined as “any cognitive or perceptual process distorted by the need to maintain and enhance self-esteem, or the tendency to perceive oneself in an overly favorable manner.” We all value confidence and self-esteem, but when the difference between who we are and what we want others to think about us is significant enough (we need to lie to ourselves about it), we have an issue with self-awareness. This issue will permeate nearly every aspect of our work and personal lives and cost us in the long run (sometimes in obvious ways and sometimes in hidden ways.)

• Self-management (versus deflecting, blaming) is taking the self-awareness of our emotions, feelings and thoughts and then managing and controlling them so they don’t control us. Further, we regulate and redi114

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•

•

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rect them to energize and drive our response to situations within our “locus of control” more effectively, and they help us stay positive and patient and provide great perspective when we face situations beyond our control. (Note: Without self-awareness and self-management, it would seem that the rest of these “hard work” factors will be more difficult.)

Positivity (versus complaining or naysaying), when it is authentic, is the “oil” that quiets the squeaky issues of the workplace, between team members in committees, the boardroom (or at home). If you are complaining more than you used to, it might be worthwhile to 1) find someone or some cause you can “invest your service into,” and 2) think of three to five ways you could be grateful in a new way that particular day. (Note: If you’re overly cynical about another person’s positivity, it’s a great time to go to someone you trust and share the situation with them to “check your temperature” about it. Then refer to Steps 1 and 2 earlier.)

Adaptability (versus more complaining) is a gift to give to those around us. It is a great way to become an influential leader in a world of rigidity, boundaries, deadlines and curveballs. How? Showing adaptability is giving grace for mistakes, missed deadlines or dropped balls. Further, it is believing the best about the intent of others as well.

Organizational awareness (versus social blindness).

One of my favorite questions from Jonathan Clark, a leadership expert with Coriolis Consulting Group, is this: How is the world occurring today for (insert name)? It’s a great question, but we won’t ask it if we can’t set aside our emotions, feelings and thoughts to consider the person or the group. Similarly, a key attribute for success is “reading the room” (as in an interview, a negotiation or similar). Simply put, people with self-awareness and self-management have the potential to observe the words, tone and nonverbals of those around them. With this information and not encumbered by their own “emotives,’’ they are free to influence, build consensus and trust, etc.

Hard work (for highly likely success where it counts) • With self-awareness and self-management, we can become more effective at: • Inspiring: Our message of inspiration (or motivation) is more likely to resonate with others when it’s not clouded or muddied by conflicting words, actions, nonverbals, etc. (that appear self-centered or worse).

• Mentoring: Our message of encouragement, coaching and purpose is also more likely to resonate with those we seek to coach for the reasons listed in the above bullet. Further, when the messages we send in our words, actions and nonverbals are consistent and aligned, those we work with and live with can develop trust in us and our intentions and motivations.

• With positivity and adaptability, we can become more effective at: • Helping: When we have inspiration and trust, we can combine positivity and compassion to support those around us. It puts us in a position to influence, lead and make a difference (even when we don’t have a leadership title or position).

Adaptability: A positive perspective supported by the trust we earn gives us a platform to help through adaptability, resourcefulness and similar.

Adaptability and resourcefulness are two of the most valuable traits we can bring to the workplace, the team and our employer.

• With enhanced and trained organizational awareness, we can be more effective at: • Giving the best of ourselves and our time to maximize the effectiveness of “us” in our career • Giving valuable perspective as constructive feedback and coaching to others (most often in a 1:1 manner) • Giving strength, support, a positive attitude and example to our “team,” our customers, etc.

•

As we approach this coming new year, with the election season (oh boy), let’s choose to be “leaders in the hard things.” Let’s focus our time and energies on growing our “soft skills” and emotional intelligence capacity. Doing so will benefit our enlightened selves. More importantly, it will benefit the people we lead, those we work with and those we live and play with. B R

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ROBYN STOWELL

LAW & LEGISLATION

Robyn Nordin Stowell is a partner in the law firm of Spencer Fane LLP. You can reach Robyn at (602) 333-5467 or rstowell@spencerfane.com. This article is for informational purposes and is not legal advice.

Proxy Voting I have received many questions about members voting by proxy, so this is a summary of the issues and options.

If you have a member meeting coming up and want to consider, or are being asked to consider, allowing voting by proxy, you must first review the applicable state statutes and your bylaws.

Many state statutes speak to a member’s right to vote by proxy and whether it can be limited by the board or by the bylaws. Often the statute differs for nonprofit and for-profit corporations in the same state. Thus, you need to know what type of entity the club is and be aware of the statutory requirements.

If the applicable statute does not speak directly to a member’s right to vote by proxy, or if the statute refers to the bylaws or does not limit the club’s ability to control or limit or deny proxy rights, the club’s bylaws may include provisions that allow the board to restrict or control voting by proxy.

Once you have identified the options available under the statute and the bylaws, and considered your concerns and the issue you are trying to address, you can consider the options available to you, which include the following.

Directed proxy. A directed proxy is a proxy given by the voting member that names a proxy to vote but also tells the proxy exactly how they should vote. In other words, “I name Robyn as my proxy and direct her to vote yes on the proposed bylaw amendments.” It operates much like a vote by ballot and clearly expresses the member’s vote.

Not directed proxy. A proxy that is not directed names the person to vote for the member but does not tell them how to vote. It might read, “I name Robyn as my proxy to vote in my name on all issues that come before the member meeting on [date].” This type of proxy is preferred by members trying to harvest votes in advance of a meeting in the form of a proxy.

Another option to consider is whether or not to conduct the vote by written ballot without a meeting. Again, you must check your local statutes and your bylaws, but most clubs can vote by electronic or written ballot outside of a physical meeting. It gives a better chance of allowing all members to vote without needing a proxy.

If the bylaws do not have these provisions, consider adding them the next time you update your bylaws. Some examples of helpful bylaw provisions are those that allow the board to establish procedures for voting, including by ballot, by proxy and by electronic voting.

With the available options in mind, the next thing to consider is what concerns you are trying to address with proxies. For example, some clubs require all voting to occur at the meeting (not by ballot in advance), and they might want to make voting easier by adding a proxy option so that the club can obtain the votes needed to reach a quorum.

Other clubs are concerned that some naysayer members are trying to harvest proxies to control the vote, and the board does not want a single member or small group of members to hijack the vote. That board would like to restrict the use of proxies.

In still other cases, the board is concerned about the logistics of the meeting and how proxies will impact those logistics.

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It is not clear whether the proxy holder’s vote will align with how the member would have voted.

Another issue to consider is whether you provide the proxy form for your members. Providing the proxy form may encourage more members to participate in the vote.

It also allows the board to suggest that a board member or officer could be the named proxy. The board might provide a directed proxy form to help avoid ballot harvesting. If the club provides the proxy, it can clearly state instructions on its face. It helps avoid confusion if a member signs a proxy that does not comply with statutes or the bylaws.

Another option to consider is whether or not to conduct the vote by written ballot without a meeting. Again, you must check your local statutes and your bylaws, but most clubs can vote by electronic or written ballot outside of a physical meeting. It gives a better chance of allowing all members to vote without needing a proxy. B R

Congratulations

MOVERS & SHAKERS

BOARDROOM magazine is promoting advancement in the club industry via its Movers and Shakers section on the website.

This section pays tribute to new placements and advancement for club executives and staff.

In addition to announcements on social media and on the website, these posts are shared through bi-weekly and monthly emails.

Scan here to view or submit a placement.

Movers & Shakers is sponsored by

PAMELA RADCLIFF Pamela Radcliff, SHRM-SCP, CAM, can be reached at pamela.b.radcliff@gmail.com

HR COMMITTEE

How to Become an Accountability Superhero Who needs to raise the bar for service this season?

Don’t have a lot of time?

Need to get things done through others?

You need to become an accountability superhero!

Who is accountable for ensuring accountability?

The traditional understanding of accountability is a topdown model: you must obey or suffer the consequences … where accountability is something that “happens” to us.

Members hold boards accountable.

Boards hold the GM accountable.

The GM holds the directors and managers accountable.

The directors and managers hold the front line accountable.

If you’re like me, you’d rather see it the other way.

Accountability flows from the bottom-up.

Team members proactively report to their leadership.

People take care and take charge.

Accountability versus responsibility You can only delegate responsibility.

You cannot delegate accountability. It has to be “agreed to and accepted” for the person to feel ownership.

“You’re responsible for (duties, tasks, assignments) …. and I will hold you accountable (liable).”

See the difference?

And as leaders, we want both.

We want people to accept responsibility and take ownership of the work (accountability).

Inc.com reports from a national study that most organizations lose 60 percent of their potential performance because leaders turn their backs on non-compliers (deadwood). Further, formulas used by the Bureau of Labor Statistics show the productivity difference between the highest and lowest performers is a factor of 8:1.

Team members assume their behavior is correct unless it is corrected When someone is not performing correctly: • They are either unconscious of it, or • They are choosing not to perform as required.

What holds you back from holding others accountable?

(Check all that apply.) c Fear of retaliation c Fear of disapproval (won’t be liked, will be laughed at) c Fear of reaction (emotion – I won’t know how to handle) 118

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c Fear I’ll be ignored or blown off c Fear I won’t be backed c Unaware (I don’t notice – I don’t know what to look for) c Low standards c Accommodating.

Top five reasons people don’t hold others accountable 1. Fear of offending or jeopardizing a personal relationship 2. Feel they lack the time to follow up effectively 3. Lack of faith that their effort will make a substantial difference 4. Worry that by holding someone else accountable, they may expose their own failure 5. Reluctance to spark any retaliation.

Clearly, holding people accountable means dealing with emotion. Your job as a leader is to overcome your fear of dealing with emotion. Without emotion, change cannot take place.

“After all, who are you to hold them accountable?”

• You are their coach, mentor, leader or their teammate.

• If you don’t, who will?

• You are a leader in this organization; it is your job.

Hold others accountable in a positive and principled way …. not “gotcha” or punitive Asking: “How (or why) did that happen?” puts people on the defensive and leads to unproductive responses.

We can hold people accountable in a way that motivates, supports, encourages and helps them deliver what we seek.

Act in a way that causes people to feel you are fair, rational, predictable and have integrity.

The underlying ugly truth in accountability …

If things are going wrong, there must be something wrong with what I am doing.

It’s a tough pill for most to swallow – but we can fix it.

A better question is: “How (or why) did I let that happen?”

• It focuses on what you can do to improve the situation • You take accountability for your part of the failure • It empowers you to get more done through others.

Let’s get to some actions we can take to be accountability superheroes.

The accountability sequence The accountability sequence is a model to follow to become an accountability superhero.

Key question: How well did I form expectations?

Are we ready to set clear expectations for the following?

• Behavior • Conduct

• • • • •

Standards of excellence Policy (attendance, sick leave, etc.)

Training Teamwork Ownership.

Have we documented or memorialized our expectations?

Key question: How clearly did I/we spell out our expectations?

Answer true or false If you answered true to any of the above, it’s time for a do-over.

“What you communicate is what you get.”

• What people think you expect is what they give.

• Reinforce what you say with the written word – especially key expectations.

• People need to hear it seven times.

• What is the compelling “why” behind each expectation?

• Did we explain “why” well enough?

• Was “why” understood?

• Can our team explain it back to us?

• Do we have it in writing?

Key question: How well did I/we set boundaries?

• Acceptable and unacceptable business practices • Standards of excellence • Priorities • Budget, resources, time constraints.

Key question: How well did I/we get complete agreement?

Key question: How well do I/we inspect what we expect?

Getting the team ready to be inspected

They don’t want you to inspect because: • They think your follow-up means you don’t trust them • They want to be “empowered” – don’t want to be “second-guessed” • They don’t want to disappoint you • They take pride in not needing your time or attention (credibility issue) – autonomy • They don’t think your inspection will add value.

The key to success • Establish a repeatable process • Allow them to report on their progress – better yet, get them to initiate the reporting process • Avoid “testing” people – check in to see how they are doing • Your Intention must always be to help people succeed • Reinforce progress – emphasize their progress – don’t just address shortcomings.

So, if you want to become an accountability superhero: • First, hold yourself accountable a. Ask, “If something is wrong, what am I doing wrong?”

• Decide what you need to change a. Are my expectations clear? b. Have I explained it well enough? c. Have I said it seven times? d. What’s in it for them?

• Set a process for team members to report progress • Put a plan in place for how you will support the team. BR

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JOSH BLAND Josh Bland is an F&B manager at Glendora Country Club in Glendora, CA, and can be reached at jbland@glendoracountryclub.com

COMMUNICATION COMMITTEE

Ten Things to Do To Stay Plugged In It is easy to feel “plugged in” when you are a member of your student CMAA chapter.

Once you graduate, this can change. With a busy work life and personal life, it is hard to find time for CMAA. I look for anything that I can do to stay connected. Here are 10 free and easy things a new manager might try to do in order to stay plugged in.

1. Listen to a podcast. “Let’s Talk Club Management” with Kyle Jennings and Melissa Lowe is CMAA’s official podcast.

Their guests are club industry leaders, and they cover all manner of club-related topics.

2. Find a CMAA mentor. Having a mentor who is active in CMAA and has a CCM or is working toward a CCM is imperative for anyone who shares that goal. A mentor with access to CMAA and its network is an invaluable resource for any emerging club leader with aspirations of earning a CCM and having a long career in clubdom. CMAA club managers are always willing to answer questions.

3. Ask questions anyway. It can only benefit your club and its members for your superiors to answer any question you might have. “Can we schedule a time to connect so I can ask a few questions?” is a great way to start. Asking your leaders questions demonstrates your desire and willingness to grow in your career.

4. Be an active participant in your LinkedIn network.

Get a LinkedIn account. Most club leaders have one. Leaders post links to articles they have written, post pictures and reviews of activities at their clubs, and interact with colleagues they do not see often. Read their articles, make comments, congratulate successes and learn from posts others make.

Introduce yourself to other managers to grow your network.

5. Read articles. Plenty of private club and hospitality publications, including BoardRoom magazine and BoardRoom Briefs, publish material relevant to the private club industry. Professional magazine subscriptions can be ex-

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pensive, but some managers receive lots of industry mail they can pass on to others. Ask if you can have these issues once your leaders are done with them. You will gain access to articles and publications you otherwise would not be able to access.

6. Write articles. Writing is important to your professional growth. Write as much as you can even though the only person who might ever read your article is you. Technical writing and writing for publication have specific guidelines. The only way to get better is to practice. Your communication skills will get better if you write. Write often.

7. Volunteer. CMAA and regional chapters put on many events. They are always looking for an extra pair of hands to check people in, pass out handouts or help run a smooth event. Volunteering is an effective way to grow your network and access education and seminars. Reach out to your local chapter or even the local student chapter.

8. Help your local student chapters. Make yourself available to the student chapter. They can always use someone in the industry to make introductions for them. Help put students in contact with managers who will speak at their chapter meetings or mentors students.

9. Go on tours. Reach out to a club and ask to come for a tour. Let them know you are in the industry and want exposure to other clubs. If you are taking a trip, look for a club in the area and ask if you can come by. Clubs and club managers are almost always open to visitors and to answering questions. Reach out and ask.

10. Use your imagination. I’m sure there are plenty of other things that can be effective. Just ask. It goes a long way with a lot of club leaders. The worst that can happen is someone can say no to you. At least you made yourself known. Above all, you need to take a chance and do the reach. B R

COREY SABAN Corey Saban is co-founder of Newstation.com. A former Emmy nominated and Associated Press winning TV journalist Saban’s company serves as a virtual newsroom for all industries looking to use short form video to engage their clientele. To learn more, text the name Corey to 31996 or email him at CSaban@Newstation.com.

COMMUNICATION COMMITTEE

Mastering the Art of Public Speaking A Vital Skill for Country Club General Managers Effective communication is paramount to your success as a general manager.

Whether you deliver speeches, address members and staff, or represent your club in public settings, being a strong public speaker is invaluable.

The ability to articulate your vision, engage and inspire others, and build lasting relationships through communication can drive your club’s growth and reputation. So what are the keys to success?

Before every presentation, ask yourself: “What is the why of this message? What do I want the audience to do?” It will help you narrow your focus.

Start with a strong opening, which includes the following: • A question to create engagement: “How many of you have…?” Get them to raise their hands and make your question something you will get buy-in on.

• An anecdote, joke or powerful statistic.

• A story that connects to your topic.

Starting your talk with one of the concepts above allows you to build a connection with your audience. It’s more engaging than starting with your bio.

Next, get into the central part of your presentation. It could be about a new project or how you overcame internal challenges with F&B. Create a simple outline of what you want the audience to know, why it’s essential and what you want them to do. You must be authentic, transparent and set the tone for your points. Consider your takeaways and keep them short and to the point, two or three tops, so you can create intrigue and elicit questions.

If you use PowerPoint, make sure your slides are not text heavy. Slides with too much text lose their power and fail to make a point. Your audience ends up reading and not listening to your words. Use pictures with bullet points. From the bullet points, share stories that validate the issue you are trying to deliver.

If you use numbers or statistics, tie them in with visuals that make the numbers memorable. You say, “We need half a million tons of sand to refurbish our bunkers.” To put that in perspective, that’s 25 dump trucks filled to the top.

If you use charts or slides, play tour guide with facts and pictures. Use the slide pointer to showcase the point you are trying to make by saying, “Take a look at this.”

Don’t read your presentation. Highlight the key points on each slide and move on.

The best way to overcome nerves is to know your material, create an immediate connection with the audience and smile. You will receive immediate non-verbal positive feedback, which should relax you.

Also, get your mindset right. You are the thought leader on the topic, so don’t let someone else hijack your selfworth.

Lastly, look at your body language. Avoid using a podium because hiding behind one leads to bad habits, like clutching the sides as if holding onto a life raft. It blocks you from the audience. Try to walk in front or on the side of the podium.

Try not to rock back and forth. Take calculated steps, two or three at a time, without pacing.

Here are a few other suggestions: • Always keep your hands at your side unless you are using them. For example, “Today I want to tell you three things,” then show each finger and put your hands down. Never put your hands behind you or in front of you. Put them down at your sides after you make your gesture. Then use them again for your next gesture.

• Eye contact is essential. In a room set up theater style, use your eyes to make the letter Z with your audience.

Start with the top line in the front or back, then move to the middle, etc.

• Non-verbal gestures. If an audience member gives you a head nod of agreement, smile and nod back.

Communication is a two-way street.

• Posture. Stand up straight without hunching, crossing your legs or leaning over.

• People remember your body language and tone of voice more than your words.

I look forward to your success. By practicing and using these tips, you will spark excitement, encourage teamwork and rally support, driving your club to new heights of success. B R SEPTEMBER / OCTOBER 2023 | BOARDROOM

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EXECUTIVE COMMITTEE

Whitney Reid Pennell, president of RCS Hospitality Group, is a celebrated thought leader, consultant, management educator, and speaker. RCS specializes in strategic planning, operations consulting, food and beverage management, executive recruitment, and training programs. RCS has been recognized 13 times with BoardRoom Excellence in Achievement Awards, including staff training six times. 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.

The Power of Empathy In Bridging Generational Gaps Private clubs prioritize personalized service delivered by engaged, well-trained and compassionate employees.

These individuals are critical in implementing the club’s strategic plan. Without them, the plan fails. Today, focusing on employee well-being is crucial for better performance.

Managing a multigenerational workforce requires strategies supporting wellness and mitigating generational tensions. Extending empathy and grace to Generation Z is especially important.

Generation Z has been impacted significantly by the COVID-19 pandemic.

This group, typically seasonal employees or emerging managers, ranges in age from 10 to 27. In 2020, COVID-19 disrupted their life experiences, resulting in limited work opportunities, minimal job and social experience, and limited skills.

Lacking socialization outside their homes in their formative years, the members of Generation Z rely on technology and social networks. As a result, they may face social anxiety or discomfort with in-person conversations, making the private club environment potentially challenging for them.

Your club recognizing the challenges a multigenerational workforce faces is crucial for fostering a supportive and inclusive work environment. Benefits and potential conflicts naturally arise, demanding empathy and understanding as individuals navigate their roles within the team.

Offering patience and guidance helps bridge the gap between limited experience and workplace expectations. Mentorship opportunities, tailored training and professional development resources enable growth and positive, successful contributions.

To avoid generational tensions in a multigenerational workforce, private clubs can implement the following strategies: 1. Foster an inclusive culture: Create an environment where all generations feel valued and respected. Encourage open communication, collaboration and mutual understanding among employees from different age groups.

2. Recognize and appreciate differences: Each generation brings unique perspectives, strengths and skills. Embrace diversity and leverage varied experiences and expertise of generations to enhance team performance.

3. Encourage intergenerational collaboration: Encourage and facilitate opportunities for employees from different generations to work together on projects or participate in mentorship programs. These opportunities cultivate knowledge sharing, strengthen relationships, build trust and promote understanding.

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example, Baby Boomers may not be as comfortable using technology as Millennials. Use role-playing in training exercises to encourage active listening, open dialogue and feedback to minimize misunderstandings and promote a positive work environment.

5. Provide continuous learning opportunities: As the saying goes, “Meet them where they are.” Offer training programs and ongoing professional development opportunities that cater to the learning preferences and needs of employees from all generations. Catering to their needs demonstrates a commitment to their growth and helps them adapt to evolving industry trends.

6. Create mentorship programs: Pair seasoned employees with younger staff members for mentorship opportunities. Mentor relationships encourage knowledge transfer, promote mutual respect and support the development of younger employees and may give older employees a “technology buddy” when they could use a hand.

7. Lead by example: Managers and leaders should “walk the talk” and exemplify empathy, respect and inclusivity in their interactions with employees from all generations. They can cultivate a culture of understanding and collaboration.

8. Encourage social connections: Foster a sense of community and belonging by organizing team-building activities, social events and opportunities for employees to connect personally. Social connections help employees feel safe at work and break down generational barriers.

9. Emphasize shared goals and values: Communicate and reinforce the primary mission and values of the club, highlighting how employees from different generations contribute to collective success. Knowing how one contributes to the greater good and overall success promotes a sense of unity and shared purpose.

10. Offer flexibility and work-life balance when/where possible: Recognize that different generations may have varying needs and obligations outside of work. Provide flexible work arrangements or offer more scheduling choices to accommodate their diverse personal needs away from work.

By implementing these strategies, clubs can cultivate a strong service culture that fosters a harmonious work environment by recognizing the strengths and developing the potential of their dedicated staff and managers.

Avoiding generational tensions and promoting empathy and collaboration will result in heightened team performance, increased member satisfaction and pave the way for long-term success.

Investing in employees’ well-being and recognizing the unique contributions of each generation will undoubtedly propel your club toward delivering excellent service and superior experiences.

Happy, engaged employees are loyal and look forward to work, which naturally reduces turnover, improves productivity and improves financial results. B R

ROBERT PODLEY Robert D. Podley, CCM, CAM is the general manager at the Colonial Country Club. He can be reached at (239) 768-7200 or via email: rpodley@Troon.com | www.colonialgolfclub.com

ON THE FRONTLINES

Attitude in Country Club Leadership Choosing to Be Outstanding “I choose to be outstanding.”

Throughout my two decades in the club industry, I’ve been privileged to glean wisdom from remarkable individuals who have surpassed me in intelligence and expertise across all facets of club operations, including members, associates and those in esteemed organizations like CMAA and Troon, the latter of which has been my home for the past 12 years.

They have been invaluable sources of knowledge and growth. The accumulation of years spent learning from these individuals, often through inadvertent mentoring, has left an impact for which words cannot adequately express my gratitude.

However, it is worth noting that sometimes a profound influence does not require years of interaction; a single sentence can encapsulate it. In this case, I will focus on one leader’s recurring response to “How are you?”

His answer remained simple and impactful, regardless of personal circumstances, even amidst the inevitable challenges we all face: “I choose to be outstanding.”

In the world of country club leadership, you cannot overstate the impact of attitude. A positive and determined mindset can shape the entire culture of a club, inspiring staff and members alike. When someone asks, “How are you?” a response such as “I choose to be outstanding” holds profound meaning. It reflects a mindset of excellence and a commitment to go above and beyond.

The influence of attitude in country club leadership: Attitude plays a pivotal role in country club leadership as it sets the tone for the entire organization. Leaders who embody a positive and outstanding mindset create an environment that encourages growth, professionalism and exceptional service. Such leaders understand that their attitude permeates the club, impacting staff morale, member satisfaction and overall success.

Choosing to be outstanding – the power of mindset: When faced with the question “How are you?” responding with “I choose to be outstanding” reflects a deliberate decision to approach every aspect of club leadership with excellence. This mindset acknowledges that being outstanding is not a result of chance or circumstance but a conscious

choice. It is a commitment to deliver exceptional experiences and raise the bar.

Setting a high standard: Leaders who choose to be outstanding set a high standard for themselves and inspire their team to do the same. They lead by example, demonstrating a strong work ethic, professionalism and dedication to continuous improvement. By setting the bar high, they challenge their staff to exceed expectations and push their boundaries, ultimately enhancing the club’s reputation and member satisfaction.

Fostering a culture of excellence: The attitude of “choosing to be outstanding” fosters a culture of excellence within the country club. It encourages a proactive approach to problem-solving, a commitment to ongoing learning and a focus on delivering exceptional service. This mindset creates a positive and dynamic work environment where team members feel empowered to take ownership of their roles and contribute their best efforts.

Inspiring others: Leaders who embody the attitude of choosing to be outstanding have a remarkable ability to inspire others. Their positive energy and dedication to excellence are contagious, motivating staff members to strive for greatness in their roles. By consistently expressing this mindset, leaders create a ripple effect that spreads throughout the club, elevating the overall performance and creating a culture of continuous improvement.

Making the choice: Attitude is a powerful force in country club leadership, and choosing to be outstanding reflects a mindset that can transform the entire organization. By embodying excellence, setting high standards and fostering a culture of continuous improvement, leaders inspire their teams to go above and beyond. So, the next time someone asks, “How are you?” remember the impact of your response. Choose to be outstanding and watch as your attitude shapes a club where excellence becomes the norm. BR

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GREGG PATTERSON Gregg Patterson is founder and president of Tribal Magic.

He can be reached via email: GJPAir@aol.com

TRIBAL MAGIC

Cultivating the Next Generation Talent needed Talented, educated, exposed, connected, energized, experienced and caring people are needed on committees and boards to ensure that good governance happens.

Talent doesn’t “just happen.” A process is needed to ensure that the right people are chosen, the right mindset is developed and the right tools are supplied to members with potential for board service. Cultivation of “those with potential” is a must-do to fill the talent pipeline with quality candidates.

The talent journey Developing talent is a journey, slow and deliberate. Here are the steps for preparing the next generation for club governance.

1. Enlarge the talent pool. The governance journey starts with an educated and informed membership. Communications are key, and over-communication is a must-do. Lots of letters from the president. Lots of board updates on projects, finances and operations. Lots of articles in the newsletter. Lots of videos on what’s happening or will be happening. Open the door and give members a look at the inner workings of the club and the issues the board and committees face. Informed members are automatically in the talent pool.

2. Template the basics. Create a report card that identifies the qualities you’re looking for in governance candidates.

Frequency of use. Curiosity. Member network. Availability.

Engagement. Discussion skills. Collaborative mindset. Special talents and experience, such as finance, insurance, construction and education.

3. Identify potential. Develop a system for identifying and inventorying those with potential. Scouts are needed who’ve “been there, done that” and know what’s needed to do good governance right. The GM, current and past presidents, current and past board and committee members need to be selected and trained as talent scouts. They have been involved in governance, know the issues and needs and are connected to lots of members in the club community. Their job is to use their personal encounters and extensive networks to identify members with the personality, interest, balanced perspective, collaborative mindset, professional experience and the club enthusiasm to be considered for governance.

4. Select for service. After the chairman’s recommendation and board consideration, those with potential are selected for committee service. They need to be matched with the right committee to ensure that their talents are useful and their interest is assured.

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hensive governance review which includes governance guidelines, operational and strategic issues.

During the year, the chairman and GM (who will be attending key committees) will determine if those with potential attend meetings regularly, exhibit enthusiasm, are active participants, read what’s distributed, come prepared to discuss what’s distributed, engage in the discussion of what’s distributed, contribute energy to the committee meeting.

If they get and follow through with assignments, present their research and conclusions effectively, are collaborative during meetings, bring comments and insights from their member network, are eager to continue serving and exhibit an enthusiasm for more assignments, more committees, more research, more engagement.

Those with potential need coaches and mentors, people who can tell them “how it’s done” and offer advice and insight about governance. The GM, the president and the committee chair are key to the process. These coaches and mentors know their responsibilities, know the people they’re assigned to mentor and connect with them.

Consultants/educators/operational experts should be hired and used to further the committee members’ understanding of issues specific to that committee and issues of interest to the entire membership community.

If committee members exhibit the right “governance qualities,” they get to serve on other committees in the coming years. Ideally, to provide a broad-spectrum understanding of the club and the governance process, these “minor leaguers” should serve on three committees for at least a year each before they are considered for board service.

When this process is complete, these minor leaguers should be considered “certified for board service” and added to the list of candidates for the coming year’s board.

6. Nominate, elect, use. Once those with potential have successfully served their time in the minors, once they’ve been exposed, educated and certified for board service, once their skill set is properly developed, they should be added to the list of targeted minor leaguers. Then, depending on the needs of the board, the selection committee should choose candidates who’ve been groomed, cultivated and certified for board service.

THE TALENT JOURNEY It takes time to develop board talent.

It’s a process, slow and methodical.

Be patient. Identify, expose, educate, certify and select the next generation of board members.

And while you’re cultivating, enjoy the journey. BR

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cal is our foundation. As an industry, we have learned to work with all three properties with an interaction between the three.

One of the most gratifying parts of my travels is working with superintendents who take the time and make the effort to understand the interaction of the three properties.

These superintendents are true professionals and a credit to the sports turf industry and the courses that depend on them to produce the best turf with the resources they have.

These superintendents make the maximum with their resources, and almost without exception, they produce and maintain a quality of turf that was unthought-of a few short years ago.

One of the least gratifying parts of my travels is working with superintendents who don’t take the time or make the effort to understand the interrelationship of the three properties.

In most cases, these superintendents cannot justify in their minds the expense of doing physical property testing, which is around $3,000 for the first-year benchmark and less in the following years, depending on the condition of the physical properties and the action that needs to be taken and monitored.

When a superintendent can justify pursuing knowledge about physical properties, the savings in chemicals and water far offset the initial testing cost. Understanding the physical properties is a must in today’s world.

The majority of top courses in the world base their agronomic procedures on the science of physical properties.

Necessity forces change. B R

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GORDON WELCH

BOARDROOM PERSPECTIVES

Gordon Welch, president of the Association of Private Club Directors, has over 20 years’ experience in private clubs and 12 years of experience as an association executive and registered lobbyist. For more information or to discuss your orientation, you can reach me at gordon@boardroominstitute.com or (918) 914-9050

Leveraging Technology for Learning Technology plays a crucial role in today’s society, and its importance extends to various industries and organizations, including private country clubs.

Board members of private country clubs can benefit from leveraging technology to enhance their learning and effectiveness.

Boardroom Institute can be a valuable resource to private country club board members as they pursue knowledge and professional development.

Here are some key reasons why learning through Boardroom Institute benefits private country club board members.

Enhanced communication: Technology enables efficient and effective communication among board members, club management and club members. With tools like email, video conferencing and collaboration platforms, board members can stay connected and exchange information and ideas.

Boardroom Institute can provide training on how to use communication technology effectively, fostering better engagement and collaboration.

Access to industry insights: Our technology and that of our partners allows board members to stay informed about industry trends, best practices and emerging issues affecting private country clubs.

Through online resources, webinars and digital publications provided by Boardroom Institute and Boardroom magazine, board members can access valuable insights, research and expert knowledge, which helps them make informed decisions and stay ahead of the curve.

Professional development: Boardroom Institute offers various programs and courses tailored specifically to board members of private country clubs. These programs can cover a range of topics, including governance, leadership, strategic planning, financial management and member engagement. Leveraging technology-based learning platforms, board members can conveniently access these resources and acquire new skills and knowledge necessary for effective board governance.

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Data-driven decision-making: Technology enables data collection, analysis and interpretation, which can be instrumental in making informed decisions. By leveraging technology tools and platforms, board members can access real-time data on club operations, financials, membership demographics and member feedback. Boardroom Institute can train board members in data analysis and interpretation, empowering them to use data effectively in their decision-making.

Improved efficiency and productivity: Technology streamlines various administrative tasks and processes, reducing manual efforts and improving overall efficiency.

Board members can leverage technology solutions for such tasks as document management, meeting scheduling, agenda preparation and voting.

Member engagement and satisfaction: Technology enhances member engagement and satisfaction within private country clubs. By using technology platforms and tools, clubs can facilitate online reservations, event registrations, member communication and feedback collection.

Private country club board members can benefit from technology. By embracing technology and leveraging Boardroom Institute’s educational resources, they can enhance their knowledge, skills and effectiveness. It leads to improved governance, member satisfaction and overall success for their clubs. B R

INNOVATIVE

IDEAS

CHRYSSOULA FILIPPAKOPOULOS Chryssoula Filippakopoulos is the copy editor and Innovative Ideas editor with BoardRoom magazine. She was a newspaper reporter for more than eight years and worked as a marketing and communications specialist for 16 years. She is a graduate of the School of Journalism at Toronto Metropolitan University (formerly Ryerson University) in Toronto, ON. If you have an Innovative Idea you’d like to submit, please send them to boardroom@studiodelmar.net

BallenIsles Country Sports Complex Enhances Lifestyle and Wellness At BallenIsles Country Club in Palm Beach Gardens, FL, where health and wellness are a priority, a 65,000-square-foot sports complex offers members of all fitness levels many options for exercising and staying in shape.

“The sports complex is focused on the entire mind/body experience, creating an environment for our members to successfully add movement to their lifestyle in a way that feels good and is also achievable,” said Michelle Doherty, the club’s health and wellness director.

“Active, engaging programs allow members to work out on their own, participate in a group class or work one-on-one with a personal trainer. Regardless of time restraints, physical limitations or the unwillingness to work out, we cater to everyone’s needs by successfully designing programming that could ultimately be a game changer for that person.”

Doherty and her staff seek to understand members’ goals, and as a team, they work together to get there.

“We are strong believers in being the biggest cheerleaders for our members, creating an environment where they feel seen, inspired and supported in their fitness journey.”

The sports complex encompasses 9,000 square feet of upstairs fitness and workout facilities that overlook a resort-style swimming pool, 20 clay tennis courts (one an exhibition stadium court), one hard court and nine pickleball courts.

Other amenities include a Pilates studio, physical therapy, health-conscious indoor and outdoor dining venues, a racquet shop, a children’s pool and play area, lounge space and a full-service salon/spa.

“The sports complex is a way of life here at BallenIsles,” Doherty added. “Our membership recognizes if they don’t participate in some kind of activity, it may shorten the life span of their golf game or racquet sport or ultimately their own life.”

The facility, which opened in December 2008, is always evolving.

“We are constantly curious and open to new equipment, new programming initiatives and anything that would enhance our community’s lifestyle and overall wellness,” Doherty expressed.

This summer, BallenIsles began a $19-million renovation and expansion of the sports complex. The work is slated to be completed by the fall of 2024.

The project includes a new member lounge, expanded bistro dining, a new racquet shop and courts, a new aquatic center with three integrated lap lanes, a new hot tub, a children’s wading pool, full renovation of the pool cabana bar and expansion of the pool seating and entertainment space, and an enhanced outdoor training facility.

“The sports complex provides an outlet for exercising, regrouping, de-stressing, eating healthier, and for overall feeling better,” Doherty said. “Our members are so grateful for the facilities they have, which for many is their saving grace.” BR

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from Carmen Mauceri | 102

When asked the same question, Carmen responded, “Our culture and environment at Mediterra have evolved slowly and purposefully. We acknowledge that anything worth doing takes time and have committed ourselves to that time.

“The outcome is almost accidental versus having the mindset of creating something overnight. The instantaneous approach simply does not exist.”

So, what motivates Carmen as a general manager in the private club industry?

“My motivation, which is the same as the team’s, is simple: To create an organization that is unique in an otherwise common hospitality environment.

I understand that our members can choose to belong to another club and, quite honestly, our entire team has other opportunities as well. Recognizing that uncertainty is my daily motivation,” Mauceri added.

What advice would Carmen share with younger general managers?

“Acknowledge mistakes. Take the time to identify and truly understand them and then use that as a catalyst for growth not only for you but the organization as a whole. Our culture and leadership successes are at the level they are because of this practice. We from Publisher’s Perspective | 10

Often, a club will operate with between nine to 20 committee chairs that focus on specific areas of the club’s business, i.e., green committee, house committee, finance committee etc. But often, the absence of an educational process for committee members and chairs can create chaos.

The committee members and chairs need to be educated about their roles and responsibilities so that the committee and board can function for the good of the private club.

Committee members and committee chair must be knowledgeable about their club – its mission, vision, values, programs, services, members and resources – and understand the committee’s place in the larger framework of the club.

Informed committee and board members may lessen a club’s liability issues and sexual harassment, assist with fiduciary responsibilities and lessen the scourge of a private club... micromanagement.

There’s a gap in the education of board members. For some years now, different groups in the private club industry have been doing an increasingly excellent job of educating general managers and other private club staffers.

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embrace mistakes and the opportunities to correct them. And, to me, that is the definition of vulnerability-based trust,” Mauceri responded.

Carmen has not only made a mark on Mediterra, but the entire private club industry. He has set a new standard for how to effectively build and maintain an inclusive and engaging workplace. And he often devotes his time to speaking at conferences across the country, highlighting the elements that define an outstanding culture.

“By collaborating with our peers and sharing best practices, we can raise the standards across the hospitality industry, which I am very passionate about,” explained Mauceri.

Carmen also actively engages in industry associations, has served on various boards and committees, and is the current President of the Florida CMAA Chapter.

For Carmen, it is not about the awards or recognition Mediterra receives.

“It’s about doing what I truly love to do. If the quote ‘the degree of your desire determines your dedication’ is true, then I believe this is only the beginning,” he concluded. B R

However, it hasn’t been the same for board members, committee chairs and committee members.

So, how should private clubs prepare potential committee members and chairs for their roles in private club governance?

“There is no other business like a country club. That’s one of today’s biggest issues,” explained Gordon Welch, president of the Association of Private Club Directors, the parent association of BoardRoom Institute, BoardRoom’s education arm.

“Today’s board members are highly educated individuals.

They run multi-million and multi-billion-dollar industries.

However, they often do not run private clubs or truly understand how to manage a private club.

“It sounds basic, but one of the fundamental challenges that far too many board members and boards have is that they don’t have a strong understanding of their roles and responsibilities,” Welch stressed.

“It’s essential that the board provide members with multiple opportunities to learn the socially and operationally complex environment of a private club,” expressed Frank Vain, president of the St. Louis-based McMahon Group. The McMahon Group is also a member of the Club Leadership Alliance with Kopplin Kuebler and Wallace and Club Benchmarking.

“In large part, the primary challenge clubs face is that well-intentioned (mostly!) volunteers try to apply their training and experience from other industries to the private club business. Where a club is a membership model that uses dues to subsidize operating departments, many volunteers want to apply their business experience of driving incremental revenue to cover costs.

“This leads to all sorts of problems, with the most egregious example being the pursuit of food and beverage ‘profit’ instead of recognizing this as a vital social good.

Additionally, most committees function in silos, having no concept of the club’s broader mission or how their committee and activity should co-exist with, if not complement, the other committees and functions,” Vain added.

“So, education - experienced, informative, proven, timely and easily accessible is the key. This education should first focus on the position of clubs as social institutions and the business model that drives them.

“Volunteers should be regularly exposed to the effective periodicals serving the industry, like BoardRoom magazine, Private Club Advisor, McMahon’s Club Trends, and individual contact with industry experts. Fortunately, technology is now available to flatten the learning curve and allow all leaders to access information on industry best practices at a low cost and when it suits their busy schedule. The BoardRoom Institute does all this for one low fee. It allows the board to track who is putting in the time and paying attention,” Vain said.

CULTIVATING THE NEXT GENERATION “Talented, educated, exposed, connected, energized, experienced and caring people are needed on committees and at the board level to ensure good governance happens,” exclaimed Gregg Patterson, a former long-time club general manager and now president of Tribal Magic, an industry consulting firm.

“Talent doesn’t ‘just happen.’ A process is needed to ensure that the right people are chosen, the right mindset is developed and the right tools are supplied to members with potential for board service. Cultivation of those with potential is a must-do to fill the talent pipeline with quality candidates,” he added.

“Selection, education and setting expectations are critical for any area of volunteer leadership. With little to no specific background regarding a dues-based industry nor any specific knowledge of the history, trends, mission, member demographics, market, competition, member needs and wants and how the club is addressing these areas, there is simply a void. And a general manager coming into a new club has some of these same challenges, ” outlined Rick Coyne, president and founder Club Mark Advisors, an industry consulting firm.

“The more they understand, the more they can intellectually contribute. Volunteers are valuable when they can address issues intelligently as opposed to bias and personal

needs. Identify appropriate candidates, educate and provide leadership goals and objectives. They cannot do this without specific education on how a club operates and how the factors guiding the mission and vision of the club,” Coyne stressed.

“It is important that each year the board of directors set the annual goals for the incoming board and the committees,” said Tom Wallace, Kurt Kuebler and Dick Kopplin, principals with the industry-leading search firm, Kopplin Kuebler & Wallace.

“Once goals are determined, conducting mandatory orientation sessions for all board and committee members each year is a great way to communicate the objectives, when they need to be completed and how they will be held accountable.

“This ensures committees are not setting agendas, creating initiatives, or getting too involved in operations. When the club president and general manager, with the board’s support, task the committees with the goals for the year, it is much more effective and creates better alignment throughout the club,” the trio commented.

And what do they recommend as the focus for committee members’ education during the annual orientation?

“1) A review of the club’s mission, vision, and strategic plans. Carefully explain the responsibility matrix and how each person’s role fits into the organization.

2) A detailed review of the committee’s responsibilities, charters, the role of the committee chair, code of conduct, member grievance flow chart and any other documents vital to the club’s governance. This should also include club core values and guiding principles that are the foundation of how you will operate.

3) Conducting a full tour of both the front and back of the house areas of the club, not just those under the purview of a particular committee, can be enlightening and powerful.

An educated member can be the best supporter of the club in the long run!” they recommended.

“Potential committee members and chairs should be educated on best practices and made to understand their fiduciary responsibilities,” said Michelle Tanzer, partner and chair, global club and branded residences, Nelson and Mullins of Boca Raton, FL. “They should also be given an overview of the critical elements of the club’s long-term strategic plan. Whenever possible, given an opportunity to attend industry seminars and conferences to gain valuable perspective on the nature of the club industry and current trends. And the areas of education should include fiduciary responsibility and the various roles of the board and committees compared to management and members,” Tanzer added.

Here are Rick Coyne’s suggestions as starting points: 1. Develop a Leadership Committee that drives the process. They work to help select the volunteers, ➤ SEPTEMBER / OCTOBER 2023 | BOARDROOM

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2.

3.

4.

5.

6.

educate them, set goals and objectives and identify roles, responsibilities and how governance differs in a private club versus other businesses.

Have open forum meetings for potential volunteers to learn about the process. Make it fun and full of information that all members could benefit from receiving.

Engage the professional staff.

Set up a selection process and the criteria. Share it with your membership. Communicate!

Develop an objective interview process that addresses volunteer qualifications, bias, background and the role of volunteer leadership. This would be an excellent opportunity for those stepping down from committees to share their experiences.

Start each new year with an overall meeting with all volunteers to review responsibilities, goals and objectives and the philosophical mission and vision of the club. Make it strategic, have them create goals and timelines that the board can endorse within parameters that make sense.

Take away the negativity. Develop a disciplinary committee that addresses member grievances and aggressive behaviors. Be kind but firm in enforcement.

And here’s a list of things Coyne had found essential to impart to incoming volunteers.

1. Every club should have a process including the responsibilities of each committee, their role, and a code of conduct. It should be included in every volunteer’s packet.

2. What historical factors, trends or market conditions will affect the success of the committee’s responsibilities? This might include reviewing past surveys and competitive analyses, knowing any significant market-related factors, the demographics of your members and the target market.

3. What is the brand image that the Club is trying to portray? What brand goals and objectives should the committee consider as it creates its annual plan for Board approval?

4. Encourage and lead them to plan for the year and not just tomorrow. Creation of a plan requires thought and creativity. It also engages. Make this their first goal with sample plans and timelines. Have them engage with their corresponding department head and general manager. The Leadership Committee should coordinate.

5. If possible, schedule a board/committee retreat around committees presenting their annual plan as part of that year’s overall goals and objectives. Make it fun. Make it inclusive and make it work.

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“Every club should have a team of advisors that it calls on from time to time to help educate the members about industry trends and the unique aspects of the private club business,” stressed McMahon’s Vain.

“This should include specialists in industry best practices in the areas of: • Trends in lifestyles and activities • Governance and management • Finances • Strategic planning • Membership development and programming • Facility planning and development.

“It’s a wonderful opportunity now with BoardRoom Institute, an online educational tool that allows clubs to provide top-level information to everyone in the membership at one low cost and on the volunteer’s schedule,” Vain outlined.

“Board portals are also available, which is another way technology can replace the old Board Book, the large binder full of paper. Board portals make all sorts of important information available in real time.

Kopplin, Kuebler and Wallace reiterated these points.

Board portals: The highest performing clubs now use key performance indicators on three levels: board, committee and per operational department. This enhanced reporting is easier to read and access to it allows board and committee members to be more informed, leading to more efficient meetings.

BoardRoom Institute: Knowledge is power and providing comprehensive information and protections will help assure that board and committee members are well-positioned for their roles and responsibilities. BoardRoom Institute makes annual orientations affordable, mitigates micromanaging and ensures all stakeholders understand their duty of care, emphasizing legal and fiduciary obligations.

Incorporating Technology: Technology in club governance allows boards and committees to be more informed, resulting in increased productivity. Embracing technology from a governance perspective also makes volunteer leadership a much lighter lift, thus providing a better service experience overall.

So, how do clubs identify, recruit, nurture and train candidates for service on their club’s committees, as committee chairs and eventually a club’s board of directors?

“Rather than rely on a short-lived nominating committee, clubs should establish robust Leadership Development Committees that actively work year-round to identify, cultivate, educate and encourage the next generation of volunteer leaders,” KK&W recommended.

“Through education, encouragement, confidence-building and relationship development, the Leadership Development Committee is a forward-thinking initiative to determine future club leaders who are knowledgeable, engaged and provide new layers of diversity and demographics to add value

to future committees and boards. This committee also monitors existing committee members to see who has potential for the board and continued service to the club.

“Clubs should work to recruit members who are active club users, effective communicators and prioritize stewardship of the service organization. Identifying specific traits board members should have is also important. In addition to those characteristics identified, there should be a committee member tenure requirement as a pre-requisite to members being nominated for board service,” they said.

The McMahon Group also advocates establishing a Leadership Development Committee to replace the nominating committee now in place at most clubs.

“The Nominating Committee Charter is too narrow and short-lived for the magnitude of the task of identifying, recruiting and training future leaders,” commented McMahon’s Vain.

“In most clubs, they are populated by an old-boy network that starts too late and has too narrow of a charter - find three or four people to fill the open seats for the upcoming board election.

“Conversely, a Leadership or Board Development Committee is always in session and their charter is much broader, to include recruitment, nurturing, educating and training aspiring leaders,” Vain added.

“This broader mission is essential to building a better board and committee system that has a solid understanding of how the club business works, the club’s mission, the responsibilities of the advisors and executive and their role in making all this happen. When everyone understands where the organization is going and must go and the key initiatives that must be completed to further this agenda, the more likely it will be that the club can succeed,” he opined.

“Take away the negativity of serving first, if it exists. Secondly, create the criteria based upon qualifications to the specific objectives, open-mindedness, the collective vision of the common good and eagerness to serve. Use the Leadership Committee and the department heads to identify and interview candidates. Who better to assist in identification than the people expected to work with them after they have been selected? Keep it light, make it fun, get creative in your thinking and get them jazzed,” Coyne added.

If a club’s committees generally serve in an advisory role to a club’s board, how do they function to shape and support the board’s goals and objectives?

“Functioning committees should meet when they need to, not monthly. The committee’s role is to work together to support the club’s mission, vision and long-range plans. They shall make recommendations to the board. Committees do not micromanage, spend money or direct anything within the club,” stressed APCD’s Welch.

“Committees are the funnel of information. They understand the objectives from the board and work toward

➤

GOVERNANCE RETREATS

“You know that a presentation is great when after three hours, you would welcome another three.

This was truly one of the best discussions that I have had the pleasure to be a part of, so thank you for that. I look forward to digging into the materials so graciously provided. The “to-do” list” with target dates is extremely helpful.”

GENERAL MANAGER / COO | IVANHOE CLUB

Collaborative education promotes alignment between a club’s operational team and the board of directors. It provides private club leadership with the strategic thinking necessary to meet current and future member needs.

“The Board was blown away by your presentation. You took a potentially boring subject and made it a lot of fun with your real-life stories. Thanks again, Tom.”

BOARD PRESIDENT | LEMON BAY GOLF CLUB

Thomas B. Wallace III, CCM, CCE, ECM Managing Partner, KK&W 412-670-2021 | tom@kkandw.com SEPTEMBER / OCTOBER 2023 | BOARDROOM

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giving facts and recommendations to the board so that the board can shape strategy and the high-level objectives of the club. Management then takes those objectives and puts them into action,” Tanzer added.

“When committees understand their advisory role, they also understand that they are tools for the general manager and board to use, not the other way around,” emphasized the Kopplin Kuebler and Wallace principals.

“It is essential that committees recognize that there is not a lot of extra talent lying around the club with nothing to do and that they are there for the general manager to use as tools for getting things done, versus the general manager running around trying to make committees happy.

“Committee members must be educated and trained that their role is to do the work of the board and the general manager, not vice versa. When used effectively in this manner, they are outstanding conduits to and from the membership,” they added.

In Vain’s opinion, “the committee function in most clubs is upside down.

“Rather than serving in support of the board’s goals and objectives, they are typically clamoring for more funding for their department and petitioning the board to embrace narrowly focused agendas (…we really need indoor tennis courts!).

“This petitioning at the trough needs to be turned on its head, beginning with the development by the board of a strategic plan to guide the club. Once established, the board should inform the membership and then enroll the Standing Committees to support the plan,” Vain added.

“The board is the club’s only elected, so board members are responsible for setting the direction and achieving the mission. They often fail to bring the committees into this discussion, so these small groups work in silos, often at cross-purposes to the board.

“Then, when they don’t get what they want, like indoor tennis courts, they become frustrated with the process and label the board as non-responsive,” Vain explained.

“One of the best ways to address this knowledge gap is with an all-committee meeting early in the year. This is where the board presents to everyone on committees the mission-vision-values and the key initiatives that its research and planning have shown to be the critical items facing the club. This helps the committee understand where the organization intends to go and the role it can play in making that happen.

“Finally, nothing can do more to counter conventional wisdom than data. Clubs need to survey their members more regularly and then use the data collected in this process to inform their decisions and actions. Then, maybe they’ll know that only 10 percent of the members want indoor tennis courts,” Vain stressed.

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So, through all this, when do clubs know if their committee member and chairs are ready for the big leagues and greater responsibilities?

“After they’ve clearly demonstrated that they can function in the club system - they work well with others, that they possess the most important trait in leadership – curiosity, and that they are willing to put in the time to understand the club business,” Vain added.

“Each committee member should be evaluated on their own capabilities and readiness. Remember, committee members today are club leaders tomorrow. Leave popularity contests for the king and queen of the prom and select committee members for their willingness and actual ability to serve,” Tanzer said.

“If a member displays the specific characteristics identified for board leadership, has served on a committee in the recent past, has been actively involved in that committee and has added value to the club through their involvement in the committee, they may likely be ready for greater responsibility through board service,” expressed Dick Kopplin, Kurt Kuebler and Tom Wallace.

“This is where the Leadership Development Committee would gather insight from the club president, general manager and committee chair to identify a prospect’s strengths and weaknesses. The Leadership Development Committee may also build confidence and encourage greater service to the club.

“Having board members who represent the majority of the membership is essential. Not only do younger generations seek inclusivity and diversification, but those qualities also make for better boards, as different experiences and backgrounds provide unique perspectives.

“A club board made up of tenured male golfers who are making decisions for younger member families with a wider range of priorities is not the best way for a club to remain relevant and attractive to various demographics,” they added.

“Individuals are ready to move up into the committee chairs when they have proven they are open-minded and working for the club’s future, not the daily needs. They clearly understand governance, protocol, leadership and forming consensus,” Welch opined.

“The most favorable model that I’ve witnessed is a board of governors of no more than nine members, with three members nominated each year to replace the expiring term officers,” said Phil Harvey, president, Preferred Club, a Venture Programs company.

“Eliminate the number of special committees to the following House, Finance, Greens and Golf\Membership. These committees would have a sub-committee or farm team of no more than four members. This enables the farm team to mature into the capabilities of each being a future nominee for the board.

“What I view today as an issue is that committees are too large, and nothing gets accomplished, let alone being able to

Benefits to the General Manager and the Private Club Benefits of preparing private club committee members for future positions as committee chairs and board members and presidents: 1. Succession planning: Ensures a pipeline of capable leaders, reducing the risk of committee leadership gaps, even though many committee members are already qualified, they understand their limited role.

2. Enhanced leadership team: Develops a pool of skilled and knowledgeable committee leaders to support the club’s governance process and the club’s growth and success.

3. Improved efficiency: Trained committee members enhance the club’s collaborative governance process so they can work focus more with club’s board on strategic initiatives.

4. Consistency: Promotes consistency in club operations and decision-making.

5. Knowledge transfer: Facilitates the transfer of institutional knowledge and club culture.

6. Increased member satisfaction: Well-prepared committee members can better meet member needs, enhancing member satisfaction.

7. Reduced micromanagement: Better-trained committee Chairs and members who understand their roles and responsibilities help reduce micromanagement, leaving the club’s daily operation to the club’s paid management.

Benefits of preparing private club committee members for the Private Club: 1. Continuity: Ensures smooth transitions in committee leadership, preserving the club’s traditions and values.

2. Quality leadership: Elevates the quality of leadership, leading to better club governance and decision-making.

3. Cost savings: Reduces the need for expensive external hires or consultants as on-line orientation procedures, i.e., BoardRoom Institute, become an effective and efficient way to offer committee members’ training and education 4. Member engagement: Well-prepared committee leaders can engage members effectively, fostering a sense of community.

5. Long-term sustainability: Prepares the club for long-term success by cultivating a committee leadership pipeline.

6. Enhanced reputation: Clubs with strong committee leadership development programs are more attractive to potential members and stakeholders.

7. Reduces liability: Informed and educated committee chairs, committee and board are more aware of their fiduciary responsibilities which reduces the club’s and the leadership’s personal liability.

recognize the knowledge base as maturity in the area of responsibility. Very simple, clean and efficient,” Harvey added.

“If you take care in having an appropriate, fact-based orientation that educates your incoming volunteers, if there is a process with roles, responsibilities and expectations in place, and if you are inclusive in your communication and engagement with volunteers, there is no reason that someone serving on a committee after a year would not be ready to serve on the board. Frankly, if you do it completely as outlined, they could be ready after your education,” exclaimed Club Mark’s Coyne.

“I’ve often joked about the Will Rogers quote, ‘There is nothing quite so stupid as an educated man, once you remove him from his field of education.’ Not meaning any irreverence, the quote could also be turned around to say, ‘There is nothing quite so stupid as asking for well-intentioned volunteers and not providing them the education they need to succeed.’

“It’s easy to pontificate, harder to facilitate. Look for help.

Spread the responsibilities. Be consistently successful! Data keeps us all on track,” Coyne concluded.

Also, many board members don’t realize they may have personal financial exposure sitting on a board. It’s the responsibility of a private club to properly inform them and orient them to 501(c)(7) club’s fiduciary responsibilities, sexual harassment laws and other potential exposure. Clubs can protect themselves if they can prove they have properly educated, trained and oriented their board members.

For the past 27 years, this has been the mission of Boardroom magazine... to raise a problem and seek a solution, to encourage the training and education of potential committee members, committee chairs and board members.

It’s also the raison d’etre for Boardroom Institute – our online orientation program for private clubs.

BRI offers a complete board orientation and tracks the activity of each participant through to the completion of their board orientation.

It’s an affordable way to educate your potential board members. BoardRoom Institute offers more than 85 modules presented by credible industry professionals. And the cost is reasonable. The cost to a club would be three times more to have just one of the speakers consulting directly with the club.

At least, that’s the way I see it. B R John G. Fornaro, publisher

PUBLISHER’S FINAL THOUGHTS It’s important to reiterate the differences between boards of directors and the need for potential committee members, committee chairs and board members to understand the differences between these organizations and the roles and responsibilities of their boards of directors.

SEPTEMBER / OCTOBER 2023 | BOARDROOM

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DICK KOPPLIN

THIS MUCH I KNOW FOR SURE

Richard (Dick) M. Kopplin, CMAA Fellow, is a partner with Kopplin, Kuebler and Wallace, a private club industry executive search and consulting firm. You can reach Dick via email: dickopplin@aol.com

The Three Biggest Myths About Private Club Governance A club president recently asked about common practices I observe at clubs that I would correct if I could. I told him about three typical behaviors I call the “myths of good club governance.”

The first: The board needs an “executive session” at the end of every board meeting, with the general manager excluded. Bad practice, a terrible idea and unsustainable in the long run if the club wants professional management.

Either board members believe they have a trusted partner in their general manager or they don’t. You can’t be half-pregnant on this issue. When you hold a portion of each board meeting without the general manager/COO, you signal to everyone in the club a need for a “secret discussion” without the key paid leader present. No good end can come of this.

Most capable general managers/COOs will begin to update their resumes if that happens at their clubs, with good reason. Why would they want to work with board members who do not trust them completely?

benefit from the best talent rather than take a chance on electing “barking dogs” because they have campaigned effectively.

The third: Expecting club amenities to produce a profit for the club. I often quote Phil Newman from the RSM accounting firm, who once said, “Private club budgets need to be driven from the top down in the sense that there is a collected group of people with common interests who want to enjoy certain amenities and they decide what they are willing to pay to enjoy those amenities. Contrast that to a typical business where the budget is driven from the bottom up or totally reliant on selling a product or service to produce revenue.”

Private club boards often expect food and beverage or pro shop merchandise or swimming pool fees to “carry” the budget for the year and take pressure off the dues line.

Flawed thinking. If those amenities can contribute to the bottom line, that’s a bonus. But don’t plan your business or

Private club boards often expect food and beverage or pro shop merchandise or swimming pool fees to “carry” the budget for the year and take pressure off the dues line. Flawed thinking. If those amenities can contribute to the bottom line, that’s a bonus. But don’t plan your business or operational budget based on those departments producing revenue that should come from the dues line.

The private club is filled with “he said/she said” gossip.

This feeds the rumor mill and gives fodder to the “barking dogs” in the club to undermine the general manager/COO. It is a bad practice. Get rid of it.

The second: Have multiple candidates for several open board positions. The days of “popularity contests” should be over in private clubs, and nominating committees should present the same number of recommended candidates as there are open seats on the board.

Most successful private clubs with which we work have adapted the model almost every successful business uses to nominate board members. This practice allows clubs to 134

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operational budget based on those departments producing revenue that should come from the dues line.

The club wasn’t created to make money. It exists to provide certain amenities for like-minded people who understand that the financial basis for the club resides in the dues and fees charges, not in how much money the kitchen can make on a hamburger.

If I could only wave the “magic wand” and eliminate those three myths in the private club world, I think some clubs would focus on what is truly important. Board members, general managers/COOs and club members would do better if those three myths went away for good. This much I know for sure. B R

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Strategic Club Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76-77

Forbes Travel Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Survey & Ballot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78-79

GCSAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

SYZYGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Gecko Hospitality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Triumph Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Golf Property Analysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Troon Prive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

GSI Executive Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

XHIBTZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

High End Uniforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 HINT Harris Interior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 JBD-JGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Jonas Club Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72-73 Kennis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Kopplin Kuebler & Wallace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 82, 83 & 131

138

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