Clubwise - Articles

"How a Smartguy and a Sharpcookie Solved Their Service Problems"

"Director’s Roles & Responsibilities at College & University Clubs"

"Club Leaders Speak Out"

Club Presidents Shouldn’t Talk About Frogs

         A President’s Letter Every Member                    of Every Club Should Receive

The story goes like this: A minister visited a third grade Sunday school class.  He asked them “When I say frogs what do you think about?”  One little boy said Jesus.  The minister asked why the boy thought of Jesus when he heard the word frogs.  The boy responded “I didn’t think you came here to talk about frogs.”

When it comes to members it is best not to talk in riddles.  As a club leader what do you really need to be talking about?  I suggest you tell members two things.  Tell them what they want to hear and tell them what they need to hear.  Members want to hear that their elected leaders will monitor member satisfaction and provide quality and value to the overall club experience.  Members need to hear that this effort will require difficult decisions that do not always agree with every diverse opinion of each individual member.

One thing is a reality.  Change is going to occur.  Great clubs recognize this fact and position themselves to manage change to their own best interests.  Therefore, may I suggest the club presidents write a letter to the membership outlining how the club is going to manage change.  The letter should include both what members want, and need, to hear. 

If you are a club leader consider the following:

     Dear Member,

As elected club leaders the responsibility of the Board of Directors is to insure that the club responds to member needs, and stays competitive within the market place, so we remain a vibrant and prosperous organization.  We need to address the changes in our environment that will affect our success.  To do this we need to understand the majority desires of the membership to foster ‘member driven’ responses to change.             

     The Board adopted a 5 point performance model than can assist in this process. 

           1.  Professional Member Surveys

      We will complete a professional survey of the membership regularly.  These surveys will provide benchmarks regarding your satisfaction with the facilities and services that are provided.  We will compare ratings from one survey to the next and measure progress towards greater member satisfaction.  Each survey will also provide opportunities to solicit opinions of critical success factors affecting the club at the time.

     2. Staff Development

All progress must be accomplished through our staff.  We will continually review human resource issues to provide a supportive environment for each employee to be successful.  This includes maintaining competitive compensation, benefits and training initiatives.

     3.  Monitor Progress and Provide Feedback

We will set operational goals and avoid micro-managing the club. We will monitor the progress of our management staff and provide member feedback through vibrant advisory committees.

     4.  Complete a Strategic Plan

We will develop a strategic plan based on the mission, vision and core values of our club.  This plan will include major strategic goals, initiatives that address these goals and action plans to implement the initiatives.  We will report regularly on our progress.

     5.  Fiscal Responsibility

We will take our fiduciary responsibility seriously.  We will evaluate the use of your money in providing quality facilities and services that enhance our mission and support our strategic goals.  We will set dues at a level to insure success.  If major capital investment is considered we will solicit your feedback before acting.  This does not preclude our responsibility to make annual capital investment through regular funding channels.

Not everyone will agree with all Board decisions or facets of the club’s strategic plan, initiatives or action items.  We have a diverse membership with different interests.  As elected leaders we will be sensitive to all concerns while understanding that our role is to govern in the best interests of the overall club. 

It is important to understand that the club has a representative form of government.  We have been elected to research issues, evaluate options and make decisions on behalf of the full membership.  Individual members, who have not been privy to the research, or discussion at the committee/Board level, may not totally understand how certain decisions were made.  If someone has a question regarding the club we will be glad to respond.  However, everyone may not always agree on all decisions. 

To end on an amusing note one member said “the Board has tuff issues to deal with and you can’t make everybody happy all the time.  That’s why you get paid the big bucks.”

                                                                                    Most sincerely,

Periodically I have come across letters from the president that skip the ‘frogs’ and get right to the point.  They do not beat around the bush or appear passive.  They deal with difficult issues in a professional but direct manner.  However, rarely have I seen a letter that outlines the Board philosophy on governing. 

Other letters must explain the strategic planning process and how survey data and other fact finding will be used.  This should be done early for obvious reasons.  If not you may get written comments such as the following that one member recently included in their survey response:

“We have a Board and we have to hire a consultant?  What does that tell you about the Board?  Every one knows that 99% of the country clubs are in trouble and we are going to spend, spend to make it the best in the USA.  What are you people smoking – Please give the membership some.  We are having a hard time paying for the club and we are going to make it even more expensive.  Why doesn’t the Board take off their sunglasses and see things as they are.  If you ran your businesses this way you would be in trouble.  But, then again, you all must have a consultant.”

Obviously there is some lack of communication between this member and the club leadership.  He certainly did not understand the club vision or intentions of those in a leadership role.  It is all too common that club members don’t understand the governance priorities.  It is time for club presidents to educate club members.  Education may not eliminate differences of opinion but it should set a good foundation for discussion

Remember, everybody does not use the club in the same way.   Every new service and facility improvement does not have to receive a majority of support from the membership for it to be a valuable addition to the club.  It is not uncommon for a club to have a swimming pool that is used by 30% of the membership or less.  If it required a majority to vote on building a pool today it may be a close call.  The leadership has to show how all members will benefit from a pool via club value, potential increase in social members and the associated dues revenues, initiation fee increases, etc. so that non-pool users would support the investment.

This type of thinking is critical to an effective strategic planning process.  It can have a tremendous positive effect in building trust between elected officials and the membership at large.  There must be a well thought out and logical approach to fulfilling the club vision.  This vision must be central to all communications so that existing and new members can better understand Board decisions.  Board and presidential communications must always emphasize how operating and investment strategies are helping to fulfill the greater club vision.  It is important to stay on point – no frogs please.

Jerry N. McCoy, MCM, is the President of Clubwise, LLC, a consulting firm specializing in strategic planning, master planning, operational audits and governance issues.  In 2003 he developed The Director’s Guide for Understanding Club Governance, The Governance Checklist and The Board Resource Manual all of which are publications of CMAA’s Premier Club Services®.  Jerry has authored numerous articles and regularly provides seminars to the club industry.  He can be reached at www.clubwiseconsulting.com or CMAAMCM@msn.com

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Article 24

How a Smartguy and a Sharpcookie

Solved Their Service Problems.

Johnny Smartguy, the General Manager of Longknockers Country Club understands how to handle the problem of finding good service staff. He realizes that, in his marketplace, there just aren’t a lot of good people to choose from.  Being the smart guy he is, he, like so many other good managers, has begun hiring inexperienced people with good personalities and then training them in-house for wait staff positions in the dining rooms. Yes, this takes time and effort.  However, Johnny believes that this is the only alternative to the scarcity of available people. 

He also believes that serving people is not rocket science.  You can train technique but it is difficult to develop a personality in someone that is somewhat of a dead fish.  Therefore Mr. Smartguy looks for personality when hiring.  He looks for vibrate and outgoing individuals.  Johnny realizes that every business is looking for vibrate and outgoing individuals as well.  Therefore Johnny has to, as they say, sort through the chaff to get to the wheat.  Some people hide their personality in the interview process.  Johnny has a wonderful ability to bring out the positives in people and he has a good nose for selecting fresh talent that has the potential for success. 

The best thing Johnny has going for him is the he has Jim Sharpcookie as his dining room manager.  Jim has been around the block a few times with this training thing.  Sharpcookie has perfected a two-phased plan of orientation and training of new employees that has paid big benefits at Longknockers CC.  In fact Jim has probably trained many of the good servers in their town.

What is the secret of Jim’s success?  Joe Wana-know, the manager of the Grass Is Always Greener Club, wanted to know.

To find out the secret, Joe had to identify what it is NOT.  The secret doesn’t appear to be orientation.  Several of the clubs in the area do a good job of orientating their new employees.  These clubs also provide good technical training.  There also have some relatively competent supervisors in those clubs.  Joe had all of the above; good orientation, technical training and supervisors.  So why does a Sharpcookie trained person normally outperform a Wana-know person.

Was it pay?  Joe wasn’t sure.  Both clubs pay a competitive rate.  However, Johnny Smarguy had a different way that employees earned their income.  A Grass Is Always Greener employee made on average $12 per hour.  The same was true with a Longerknockers server.  But, with Johnny’s blessing, Jim Sharpcookie had loaded the pay opportunities with performance incentives.  Slowly the amount of money each person at Longknockers made per hour had increased past the $12 average.  However, the total payroll as a percentage of sales was equal to that paid by Joe at Grass Is Always Greener. 

Joe made a life changing decision.  He would tuck his tail between his legs, put his ego in his back pocket and call Johnny.  And what was Johnny’s response?  “Come on over Joe.  I will buy you lunch and get Jim to join us.”  See Johnny was the senior manager in the area and like all good managers (Smartguys) he wanted to help the younger Joe succeed.

“What is your secret Johnny?” Joe said.  “Why does everyone say the service is always better at Longknockers?"  “I will let Jim answer that question” said Johnny.  “Jim has an interesting focus to his orientation and training.  He teaches that the key to great service is to understand the sense of urgency.  In essence Jim teaches the concept time management as the foundation to great service.  Jim, give Joe an overview of what you do.”

“Service is not great unless it is timely.  Yes, servers must be technically competent.  They must be friendly.  However, unless we can meet the member expectation of time, the service will never be considered great.  Therefore, we lay the foundation at the outset of orientation, reinforce it continually and make it a key benchmark indicator of performance for incentive compensation.”

“Let me explain it this way.  Joe, think about going out to dinner.  When you walk into a restaurant you have an expectation of the time it takes for you to be greeted and seated.  A little clock goes off in your head.  If you are not seated within a reasonable amount of time based on your initial expectations then you are not happy.  The same is true once you are seated.  A new clock starts regarding how long it will take your server to come to the table.  Once your drink order has been taken a new clock starts.  How long will it take to bring the drinks?”

“Each person in the restaurant has different expectations when it comes to time.  There are clocks starting and stopping continuously in each person’s mind.  Multiply that by the number of guests and you can see that, no matter what a server has completed, there is always someone’s clock ticking on the next expectation.  Basically, we teach our people that, no matter what, there is always something to be done for someone.  When you mix in all the other back of the house responsibilities of a service person they begin to understand that there is no time for rest during the meal period.”

“It is simple really.  We develop a high energy staff that just keeps on going like the Energizer Bunny.  The harder they work the more money they make.  Everybody handles their fair share of the load.  We do not pamper slackers.  Each person has a solid respect for the other.  All our people are self-starters that need little supervision because each person is watching out for the total organization.  Older employees help train newer employees about time management.  The supervisors monitor this performance and assist in evaluating performance incentive compensation.”

What is the moral of this story?  If a Wana-know listens to a Sharpcookie they can be a Smartguy too. 

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Article 23

Director’s Roles & Responsibilities

at College & University Clubs

by

Jerry McCoy, MCM

College and university clubs that are directly associated with a specific institution, and housed on or near the campus of that institution, have some unique characteristics.   Some of the similarities, and differences between other like clubs, can be associated with specific university policy and may force unpaid volunteer leaders into decisions that have substantial impact on the club.  This fact places directors of these clubs in a delicate role that attempts to balance the needs of the club with the requirements of the institution.

When we examine the organizational structure of college and university clubs we find that:

            1.  Some clubs have 501 C7 non-profit tax status while others are 501 C3 non-profit charitable organizations.  Charitable organizations may provide more flexibility in fundraising and other aspects of operating.

            2.  Certain clubs are subsidized by the university and subject to the state funding issues that arise from year to year.  Others may receive an endowment that becomes a stable source of partial funding.  Others still may operate and are able to break even on dues and other revenues independent of outside funding.

            3.  Club boards may include just faculty and administrators, while others may alsoinclude alumni and even staff members.  In some cases each group – alumni, administrators, faculty and staff independently nominate directors to serve on the club board.  This process can supply a variety of individuals with different backgrounds to the role of governing the club.

            4.  Clubs may be affected differently by the rules and policies of the college or university.  That affect may be the result of the mix of members within the club.  A change in  the reimbursement of entertainment for administrators and faculty by the college or university, as an example, may be felt less by a club with a greater percentage of revenue generated by alumni members that are not affected by the university policy than with a club that has mostly faculty and administrators as members.

These are just some of the issues that can make college and university clubs somewhat different from the standard city or country club. 

Before we address issues specific affecting college and university club boards we need place in context the state of the industry.  Recently the Association for College and University Clubs (ACUC) approached the Club Managers Association of America (CMAA) about managing the ACUC.  Today CMAA is assisting the ACUC in all aspects of running the association and introducing member clubs to successful operating strategies that can impact every member club. 

For years CMAA and its associated services area Premier Club Services (PCS) have been developing resource materials for the club industry.  ACUC’s new association with CMAA has provided a vehicle to promote the use of much of this club specific material to ACUC member clubs.  Today about 20% of the present managers and COO’s of the ACUC clubs are members of CMAA.  Many of these professionals have probably introduced some of this material to their club organization.  Hopefully the ACUC’s association with CMAA can have an expanded positive affect on clubs that presently do not have CMAA member managers.

One such resource item developed by PCS is a package of materials addressing club governance issues. It includes The Director’s Guide for Understanding Club Governance, The Governance Checklist and the Board Resource Manual.  The ‘Director’s Guide’ identifies a series of best practices in club governance.  The ‘Checklist’ is a vehicle for club boards to complete a self audit and compare how their board operates to recommended governance policies.  The ‘Resource Manual’ is a prototype board orientation piece to help prepare new directors for their role in the governance process. 

The governance resource package was targeted at the traditional non-profit private club.  However, most of the material will have real value to college and university based clubs.  Although there are some differences, many of the governance issues in college and university clubs mirror those concerns within the traditional private club.  In fact, because of the uniqueness of ACUC clubs, many of the suggested governance practices may be just as important. 

Let’s examine just a few of the many governance practices suggested in the Director’s Guide that would be of benefit to college and university club boards.

1.  Establish a governance policy book on how the Board will function.  Use the Director’s Guide as a model when selecting the operating procedures of the Board.  Distribute the final product to all Board nominees.  Ask each nominee to agree to abide by the policies before accepting the nomination to the Board.

2.  Hold a comprehensive new ‘Board Member Orientation’ at the beginning of the year.  Use the Resource Manual as a guide for development of the orientation package.  The orientation will insure that all new board members will have the information necessary to make quality decisions.

3.  Complete a strategic plan and revisit the plan annually.  Every organization must have a clear vision of what they are and where they are going.  A strategic plan is a road map to insure that positive progress can be made toward agreed upon goals.  A strategic plan is a living document that must be revisited regularly as the club will be continually affected by both internal and external factors.

4.  Set goals and objectives at the beginning of the year for the Board and not just the management.  At the end of the year evaluate the performance of the Board against the stated goals and objectives.  Such a system will encourage the Board to be proactive to issues rather than just reactive.

These are just some of the governance issues that are addressed in the governance materials available through PCS.  Managers and COO’s of college and university clubs are encouraged to introduce their Boards to these materials.  We are sure that unpaid volunteer leaders of college and university clubs will benefit from the exposure to these best practices.

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Article 22

Club Leaders Speak Out

The GM/COO - Club Presidents Forum

          What do clubs need most to insure progress?  The answer is surely a positive rapport between the paid executive and the unpaid volunteer leaders of the club.  Opportunities to interact and share ideas are critical to the development of a sound working relationship for governing the club.

Several opportunities to assist in this education process are available to club leaders.  One such opportunity occurs each year at the CMAA national conference.  GM/COO’s are invited to bring their club presidents to a package of educational sessions geared at learning from each other.  This year, in Anaheim California, managers and their presidents gather to discuss the state of club governance. 

On the first day a group of leaders from some of the most prestigious clubs in the country gathered to hear about new tools for educating club leaders developed by CMAA’s Premier Club Services.  In the second session, the initial group was joined by other manager – president teams for a round table discussion on key issues facing clubs.  The following are excepts from that round table which was facilitated by Norm Spitsig, MCM.

The questions for the session centered on the roles and relationships of both the GM/COO and the club board.  There were a variety of questions on leadership, the image of the governing board and what are the traits of great boards and chief operating officers.

An appropriate beginning to this dialogue on the roles and relationships of the board and GM/COO may be a quote from Michael Conroy, President of Congressional Country Club.  Mr. Conroy commented that, on the issue of leadership, boards should consider an oath similar to the doctors Hippocratic oath – first, do no harm. 

Another club president stated that we look at our manager as a pier.  The board helps facilitate the vision of the club after the manager has brought us options.  This was followed by the comment “the old adage that we have to do something because we were elected is nonsense.  We don’t need to put our fingerprints on anything.”  Thus began an incredible exchange of ideas during the roundtable on governance issues.

This is not what one hears very often from club presidents.  It is surely a sound philosophic position regarding a governing system that has transcended the problems many club managers struggle with today.  The president went on to say the “we are a line of defense for the COO.”

On the question of what makes a good director Tom Mullaney, President of Las Angeles Country Club stated that “we are not interested in candidates with personal agendas.  We examine every director every year.  Byron Francis, President of Bellerive CC in St. Louis, MO added “we try to present an image that will help the membership understand it is not our goal to perpetuate the old-boy network.”  Mr. Francis believes it is important to present a image that promotes a positive understanding within the membership that the club is a big business.  It is the job of the board to make sound decisions to the long-term benefit of the overall membership.  

Several of the clubs had recently hired their general manager.  Norm Spitzig asked both managers and presidents their opinions on what are the skill sets necessary to be effective at what they do.  Leaders commented:

“A great manager combines people skills with financial skills and a desire to grow professionally”  Jack Short – President, Southern Hills

“A club needs to be smart enough to understand where they are in transition and hire to those needs.  How a person works though the deductive process and understands their own weaknesses and strengths is important.” Tom Mullaney, President, Las Angeles Country Club

From the managers perspective both Mike Leehmius, CCM from Congressional Country Club and Kirk Reese, CCM of Las Angeles Country Club made similar comments.  They both said it is not necessarily about skill sets but more about matching management style with the club culture.

Jesse Thorpe, CCM, GM/COO Las Vegas Country Club and CMAA President, stated “Communicate your vision and align it with the vision of the board for a seamless transition.”  A most interesting comment came from Chris Borders, CCM, GM/COO of the Atlanta Athletic Club.  He responded to the question with an old adage “always hire a gentlemen.  You can teach him to be a manager.”

            When considering the skill sets necessary for great presidents and boards, managers responded:

“Managers need boards that want the GM/COO to be full partners in the process. A great president leaves behind a legacy of good board members.” Paul Spellman, CCM, Cherokee Town & Country Club

“A great president is one who is not afraid to engage the membership.”  Chris Borders

“My president writes the best letters on tuff issues.  It is an excellent support factor for the GM.” Jesse Thorpe

In a discussion of the evaluation process, David Chag, CCM, GM/COO of The Country Club in Brookline MA stated, “The evaluation process should be an opportunity for the president to evaluate the manager and the manager evaluate the president.”  WOW! We may be forging new ground here that brings a very interesting perspective to the process.  Managers have weakness, but so do presidents.  Only through an open dialogue can these concerns be discussed.  This may be a key concept to promoting the best possible governance relationship.

In the final question the group was asked what key issues private clubs faced today.  Byron Francis, Bellerive CC,  commented that even the most prestigious clubs must deal with competition and provide younger members new products and services.  Chris Borders and Jesse Thorpe both believe that clubs have to face the rising demand of technology usage by young members.  This prompted a comment from Congessional Country Club President Michael Conroy.

“We just finished redoing our cell phone policy – probably our fourth iteration – based on a continuing evolution of needs.  Doctors, parents who have stay in touch with children and other emergency issues require the club to be sensitive to this issue.  Our policy states that you can use a cell phone only when you are not in reasonable proximity to another member.”

The many small issues facing clubs today can best be summed up by a comment from Las Angeles Country Club President Tom Mullaney who said, “Managing Goldman Saks was easy compared to trying to evolve a new dress code for ladies at LACC.”

            In conclusion to this session we can now summarize these comments into a comprehensive statement on the role of the board and GM.  Consider the following:

Boards should first do no harm, show leadership by engaging the membership, while at the same time being a line a defense for the GM.  They should promote continuity by developing a legacy of great officers and directors that can work with management to maintain the vision and progress of the club.

The manager should certainly have skills and a desire for professional growth.  The GM/COO should provide a vision and options for the board while being able to blend well with the culture of the club.

The ideal governance system should provide a venue for open dialogue where the board and GM are piers that work together to promote positive change.  Good governance will be able to deal effectively with the myriad of political problems inherent in private clubs.

            It appears that the group got to the heart of the issues in quick order.  We should all thank these progressive thinkers and thoughtfully consider their comments.

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Article 21

What Most Clubs Need is a New Committee

by Jerry McCoy, MCM

Clubwise Consulting

Someone once said that “a committee is a marvelous invention that provides a platform for several people to try to do what one person can normally do faster and more effectively on their own.”  This is not to say all committees are bad.  Smart managers know the real value of providing membership input on club life through a vibrant committee process.  Most clubs usually have enough standing committees in place.  So why should your club form another committee?

I am suggesting that you form the perfect committee – that being a committee of one person.  Today’s clubs need a Board Resource Committee with essentially the only member being the Vice President as resource chairman.  The concept is to roll several key governance responsibilities under one umbrella and give the GM/COO a committed partner that will insure that critical things get done on an annual basis. 

In 2003 CMAA’s Premier Club Services® introduced the Director’s Guide for Understanding Club Governance.  The guide was a handbook for volunteer leaders of clubs that detailed a series of best practices in club governance.  Some of the practices require time and initiative to do well.  The GM/COO is normally the individual that drives change in the organization.  He or she will bring many new initiatives to the governing body on a regular basis.  However, sometimes they find it difficult to get the Board to commit the time necessary to do the important things.

The Director’s Guide suggests the implementation of several practices which will help insure vibrant governance.  They are:

1.  Newly elected directors should complete an extensive orientation process so they can become familiar with all aspects of the club.  The goal is to set each new person up for success early by giving them the tools necessary to be an effective decision maker.

2.  One of the most important things a President can do in