Article 1
Your Leadership Role "A Personal Reflection"
By Jerry N. McCoy, MCM

In 1995 Ed Henderson submitted a monograph for the Master Club Manager program on effective club leaders. In that monograph titled "Lions Among Us" it stated that "successful club management requires a strong general manager, a leader who, in partnership with the Board of Directors, provides vision and direction for a club's future success." The monograph was enlightening, as it focused on the leadership styles of several successful managers.

After some reflection on the issue, I believe leadership has a second part that complements vision and direction. It is about accomplishing agreed-upon goals. True leaders not only have vision, they have the ability to develop consensus, and then rally support from directors, committees, staff and the membership to a successful end.

When I was younger, I believed success was a derivative of having the complete authority to solve problems in areas of responsibility. To me leadership was about problem solving. I was convinced one could not be successful without the authority to act, so often an illusive element of managing a private club.

This belief was derived from a focus on the technical aspects of managerial expertise as the path to success. Technical expertise regarding the many aspects of this unique industry is certainly important. However, management is about much more.

Today I believe true leadership in the end results in progress in any form. Some characteristics of leaders listed in Lions included proactive, agent of change, visionary, high integrity and ability to instill confidence. I am in full agreement with each of the above. As I have matured, I also agree with another quote that goes "If the end result is success it doesn't matter which road you took to get there."

Good leaders in clubs today must be a combination of opposites. They must be passionate about change but adaptable to other points of view. They have to be unafraid to express ideas, yet counseling and facilitating to give them birth. Comfortable in making decisions, but have the ability to compromise on implementation. They must be able to set high standards yet, in most instances, delegate responsibility to evaluate performance against those standards. They must have confidence in themselves and their abilities, and at the same time, be amenable to criticism from their constituency. This can be a difficult road indeed.

Famous industry leaders such as Lee Iacocca and Jack Welsh gain recognition for their accomplishments. Great club leaders today are evaluated on the quality of their Clubs in meeting and exceeding expectations. Each organization is different and there is no list of actions that will guarantee success. Leadership is the ability to discern what will work, when, and under what circumstances, and how to best implement change to enhance progress.

As career opportunities expand and competition gets stiffer for that just right job, managers today often get thrown into clubs that have difficult issues to solve. Your success ratio can be enhanced substantially if you consider a leadership style that promotes progress in any form. Some clubs require extensive technical capability. However, what most clubs really require is sound management - that being the ability to get things done through other people. It is about accomplishment of agreed-upon goals and progress toward positive change.

Whatever your circumstances today, whatever job you're in, reflect on your leadership style. Is it one that promotes progress in any form? Is it a style that can make positive change occur no matter what the environment? Clubs are unique and have special personalities and cultures. A 'progress in any form' approach can enhance your success ratio no matter where you find yourself or what problem you face. That is considered true leadership.

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Article 2
"How Healthy Is Your Club?"
By Jerry McCoy, MCM

Most people have some sort of physical exam annually. They check all their systems, so to speak, to make sure they are in good working order. Businesses, as well, should examine their systems regularly to insure they are functioning well.

In the club industry there are seven areas where sickness can creep into the organization. Each should be evaluated to insure the club is vibrant and healthy. Let's examine each of them.

1. Membership Levels
Are club membership levels where they are supposed to be? Have recent efforts to attract good new people to the club been successful? Are compaction rates (activity in each service area) meeting club goals and is growth taking place? If not, why not?

2. Competition
Has new competition for the members' disposable dollars affected your club? Competition not just from new golf courses but also from restaurants, banquet facilities, fitness centers and a variety of other opportunities for your members to spend their time away from the club. What are you doing about this competition? Are there plans to compete with these companies that are sapping your operating revenues? If not, why not?

3. Operating Expenses
Are your expenses within the proper range for the products and services you are providing? Have efforts been made to save labor costs, find efficiencies in product delivery systems, purchase better and be good stewards of the club's dues revenue? What are the trends? Are you doing it better today at the same cost or is the club just passing on the increases in costs to the members in the form of dues increases? Is your club more efficient today than yesterday? If not, why not?

4. Member Satisfaction
Is your membership happy with the value they receive at your club? Most clubs have several markets within the membership. Markets such as young married couples with small children, middle ages members with teenagers, older empty nesters, senior couples and widow seniors are just a few of these markets. Each of these groups uses the club in different ways and have different expectations. Are you delivering a high level of satisfaction to each market? If not, why not?

5. Attracting and Retaining Good Employees
Is the quality of your staff what you would like it to be? Can you replace good people when they leave with comparable talent? Are there effective training programs in place? Are you competitive in wages and benefits so as to attract the best people? If not, why not?

6. Visionary Leadership
Today's clubs need to be focused on the future. An effective long-range planning process needs to be in place with specific goals and timetables for completion. Are your officers and directors thinking of the club in a visionary manner? Have you as a manager helped with direction and leadership to insure the process is effective? If not, why not?

7. A Progressive Management Team
Are the general manager and the department heads staying abreast of what is happening in the club industry? Most of the national associations (CMAA< GCSAA< PGA< USTPA and many others) have educational opportunities and certification programs. They offer a myriad of opportunities to grow and learn. Is your management team actively involved in educating themselves to the newest ideas and technologies necessary to effectively compete in the future? Is the club Board of Directors adequately funding education and training at your club? If not, why not?

Today the most successful clubs evaluate all of these factors. They keep their club healthy by addressing the issues that are important to their success. When an individual gets sick or out of shape the right medicine can cure the problem. The proper medicine may be an antibiotic in the case of sickness or hard work and diet to get back in shape. When dealing with a sick club it is planning, leadership, focus and desire that solve problems. Are you working today to make your club healthier? If not, why not?

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Article 3
 "Why Should You Survey the Membership?"
by Jerry N. McCoy, MCM

Each year hundreds of clubs will survey their membership for feedback on a variety of issues. The main reason for many of these surveys is to address controversial issues. The most progressive clubs realize that member satisfaction is the primary purpose of their existence. To that end, they believe that by identifying expectations, and then taking action to meet and exceed those expectations, true progress can be made in maximizing satisfaction. The way they do that is to solicit feedback regularly. The main vehicle for the feedback process is the membership survey. Club leaders then measure results against benchmarks for previous surveys to tract real progress.

The problem with member satisfaction is that it is a moving target. What was a new service, or smash new program yesterday, normally becomes the minimal standard of expectation tomorrow. It is mandatory to continually measure expectations so that the club can take whatever action is required to meet their primary mission.

A well done membership survey will allow all members the opportunity to participate. Many times clubs believe majority opinion is represented in a vocal minority. It is important to have a clear representation of majority opinion so that management can establish appropriate priorities.

Survey results are an important tool for management. Surveys uncover not only broad issues but also small, but not inconsequential, problems with service delivery systems. Most of these problems can be easily taken care of in quick order with little resources. Acting on these small issues can cause an immediate jump in the overall satisfaction levels.

The result of improved satisfaction levels carry over to greater departmental revenue generation. The obvious impact is that the club receives a greater portion of the members disposable dollars providing revenues for continued improvement of services. The membership survey is just one form of means testing in the club industry.

If your overall mission is member satisfaction, your goal is to maximize cost/benefit relationships and your objective is great service, then your strategy has to be to provide the best possible service-delivery-systems. The final beneficiary will be a better club for all members.

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Article 4
"Effective Clubhouse Design -
Using a Club Operational Specialist"
by Jerry N. McCoy, MCM

Many architects today are faced with the task of designing a golf or recreational clubhouse. Developers continue to plan communities that include golf courses and other recreational amenities. Private clubs are renovating existing facilities and building new ones. Entrepreneurs are opening semi-private and public golf facilities to operate for a profit. In each of these cases, architects are being asked to design aesthetically pleasing buildings that meet the needs of the owners.

The operations that take place in these facilities after they are completed can vary drastically from project to project. Building requirements are uniquely individual to the owners or members that will operate them upon completion. Successful clubhouse design is maximizing both the aesthetic aspects of the building and its functionality.

For a project to be successful, it must offer the owners the opportunity to accomplish their specific goals. Architects are not normally operations people. In most projects, effective planning requires the architect to examine the uses of the building, and design in the program elements, necessary to insure the building functions well for the owner.

In many cases, the owner does not have a total understanding of all important program elements. The owner may expect the architect to possess an understanding of what is needed. To secure the project, the architect may have to insure to the developer that they have the resources and experience necessary to understand the subtleties of this unique business. Now it’s the architect’s job to deliver on the expectations of the owner.

There is extensive case law to support the fact that "by accepting the work for a design job, a designer in effect represents that he has sufficient skill and training to carry out a suitable design for the project." (Desk Book of Contract Law--with forms, 1981, p. 78). In a 1994 survey of club planners, HGHB, an architect, planning and design firm in Monterey, California, stated, "There are inevitable gray areas in dealing with club construction...Many architects learn only too late -- at the club’s expense -- just how complex these facilities are, what a careful balancing of functional and technical issues is required."

Building a proper team during the design and document development phase is critical in addressing operational issues. Many owners, developers and design firms believe they have the operational expertise to handle the functionality question. However, many lack a real depth of direct operation experience. This is why some of even the most experienced club designers are adding a Club Operational Specialist to the team.

The Value of a Club Operational Specialist
A Club Operational Specialist (COS) brings to the team the ability to deliver the functional aspects of the building that will insure a successful project. The COS has the ability to evaluate the program elements at a very basic level and match them to the uniquely individual needs of each owner. By asking the right questions and offering valuable operational expertise during the planning phase, the COS can be sure key program elements will be included in the layout.

The COS also can differentiate between the subtle changes to service delivery necessary to satisfy members of private, semiprivate, and public clubs. The COS can have an impact on marketing issues, image enhancement, technology issues and pro forma assessment.

In the 1994 club planners survey, all respondents stated that they prepared the complete contract document package. The survey then asked them to identify, if any, the role of the owner. Chris Consultants , a design firm located in Irving, Texas, stated that "the owner and his representative should be actively involved in the development of the documents." Other answers indicated that the owner should:

• add objectives

• give operational criteria input

• establish program elements

• be involved in up-front programming

In many cases, the owner cannot fulfill this responsibility due to lack of expertise. This is where the COS can plan a vital role.

In a 1990 Club Management article "Making the Pieces Fit," the term "futuristic visualization" was introduced. This is the concept of visualizing a newly designed space as if it was completed and operating. Consider all the possible functions that can occur in that space. Identify through plans and specifications, during the document development phase, all the possible uses of the space to insure that all details are included that are necessary to deliver the services required.

Some architects and planning firms are turning out cookie cutter clubhouse designs. A search of the Internet shows companies offering a series of designs and suggesting that an owner can just pick one that appears suitable.

Owners wish to maximize profit centers, deliver unique services or sell equity investments. Slight mistakes in design can substantially hamper long-term profitability. For total success, these facilities must be personalized. The COS can be the critical element in that development.

Several very competent architects and planners regularly share their expertise on clubhouse design. Richard J. Diedrich, FAIA, of Diedrich NBA in Atlanta, has designed over 50 clubs worldwide. Kenneth DeMay, FAIA, a principal of Sasaki Associates, Inc. of Watertown, Massachusetts, has been the principal-in-charge of many golf/residential projects. Diedrich and DeMay have taught clubhouse design at Harvard University Graduate School of Design for several years. Architects from around the world flock to courses like this to learn clubhouse design and layout.

Operational issues take priority during the discussion sessions. However, it is unrealistic to expect that even the most astute student can become a club operational specialist. If anything is learned from these training sessions, it is that a COS should be included in the planning team.

What You Should Expect from Your COS
The architect/planner and the owner/developer should expect that the COS
possess the following characteristics:

• A solid operational background

• Broad-based understanding of the needs of private, semiprivate, and public facilities.

• Experience in new club construction and the renovation of existing facilities.

• An understanding of the design process.

• Experience in document development and specification review.

• An ability to communicate the benefits of your firm to the client during negotiations.

The COS should be actively involved in site planning and layout, profit center and service analysis, operational efficiencies and value engineering. When the architect planner is involved with master planning for private clubs, the COS should be able to assist in the following areas:

1. Generic and customized surveys
2. As a long-range planning facilitator
3. As a focus group leader
4. In analyzing financing alternatives
5. In pro forma development

As well as the operational and program elements, the COS should be able to effectively relate to existing management and club leadership, establishing confidence and develop a level of trust between the principals necessary for a smooth project.

With a knowledgeable COS on the team, the club should expect the planner to effectively address operating system issues such as security, sound systems, phone systems, audiovisual requirements, and management information systems layout. These system applications, and their long-term effect on operations, are as broad as the complexity of the facility itself.

The Bottom Line

An architect planner has short and long-term goals attached to every project. The short-term goals include maximizing the firm’s profitability and delivering a quality building that can enhance one’s reputation. Long-term goals include developing a relationship with the client for future work, enhancing the image of the firm’s competence in the field, and building future business with other clients through the success of the existing project. The potential for accomplishing all of these goals can be substantially enhanced by adding a Club Operational Specialist to the team.

The services of a COS can be procured from several independent sources. Experienced club planning firms, with a COS on staff, may sell COS services to project architects. Club management firms may be employed to act as the COS. The most important issue for the architect planner is to insure the COS has the appropriate credentials.

Remember that the club business is unique. It is rare that hotel/restaurant experts, kitchen designers, or other professionals can deliver COS services.

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Article 5
FUTURISTIC VISUALIZATION
"Winning the War Between Aesthetics
and Function in Clubhouse Design"

A passed issue of Golf Business featured an annual economic forecast of golf course development prepared by KPMG Peak Marwick LLP. A chart detailing the 10 regions of the country showed the development of 379 new golf courses that year. The venues extended from 333 public developments, including committees and resorts to 46 private facilities. This broad scope of development, running into the billions of dollars, has a decided profit motive.

Although the primary profit goals of the developers may be real estate sales, asset appreciation, room sales or the sale of memberships, the golf clubhouse profit center certainly will have an impact on the overall long-term success of the project. Making sure that the necessary function elements are included in the project occurs during the clubhouse design phase. During this phase, it is the responsibility of the owner/developer to set objectives while establishing operational criteria and program elements. The owner/developer must also take seriously their oversight responsibilities in reviewing the contract documents to insure their compatibility with company goals.

In most cases, owner/developers hire architects and planners for their professional design expertise. However, it is appropriate that owners not sit back and assume the experts will always deliver function. There is supportive evidence that the priority of the designer can occasionally come in conflict with the priority of the club.

Both the designer and the owner want an aesthetically pleasing facility. The owner needs a functional clubhouse, specifically customized to their needs. Aesthetics can come in conflict with function. Often, through the designer’s initiative, aesthetics become a priority over function and the owner is the loser. Only through diligent oversight of the design phase, including proper review of the contract documents, can the owner realistically expect to realize the full benefits of the project.

To accomplish proper oversight, the owner must have the necessary operational expertise. Some larger development companies have a Club Operational Specialist (COS) on staff. Others may hire an outside consultant to represent the owner. A major tool used by a COS is futuristic visualization. This term was introduced in a 1990 article in Club Management Magazine called "Making the Pieces Fit." It is the concept of visualizing a newly designed and finished space in operation using the plans and specifications. Consider all the possible functions that can occur in that space and then match the operational needs to what is actually specified, insuring that all elements necessary to provide function are included. Several examples of operational elements include lighting levels, acoustics, power requirements, sound systems, floor covering, furniture style, service accessibility, technology and communication needs.

Futuristic visualization of operations requires the ability to think operationally. Effective futuristic visualization can only be completely accomplished by someone with operational experience. By blending operations experience with the ability to read and understand contract documents, major and minor issue of function can be dealt with during the design phase and document review process.

Since the contract documents (plans and specifications) are a complete description of what the owner is buying, it is very important that the owner have a complete understanding of the documents. Many projects have a timetable with a target window that best maximizes future revenue opportunities. In many cases, the proper length of time for document review is reduced to meet construction schedules. This can be a critical mistake as it reduces the owner’s oversight capabilities exposing them to potential change orders and cost overruns. More importantly function issues may not get addressed properly and important elements may be left out altogether.

It is obvious that the COS can and does play a critical role in the design and layout of the clubhouse. Futuristic visualization is just one of the many services the COS should provide. The COS can play a role in both the construction program and operational analysis. He can also offer internal corporate benefits if the COS is a permanent staff member. The construction, operational and corporate benefits are as follows:

I. Construction and Renovation

A. Marketing
- generic and customized surveys
- long-range planning facilitator
- focus group leader
- analysis of financing alternatives
- proforma development
B. Development of program elements
- site planning
- facilities layout
- flowcharts and traffic patterns
- image enhancement
C. Project management and operations
- plan review for operational efficiencies
- specification review and operational issues
- progress analysis
- punch list development and review

II. Operations Analysis

A. Opening Services
- checklists
- timetables
B. Systems Specifications
- management information systems
- security systems
- sound systems
- phone systems
- audiovisual requirements
C. Human Resources
- staffing schedules
- management procurement
D. Financial
- profit center analysis
- chart of accounts development
- five year plans
E. Membership
- marketing systems
- equity/non-equity issues
- cooperation agreements and buyouts
F. Operational Audits
- service quality identification
- federal and state laws
- secret shopper services

III. Internal Corporate Activities

A. Research and Development
- checklist development
- industry surveys
- creative planning
B. Marketing and Sales
- CMAA connections
- shows and expositions
- journal articles
C. Training
- seminar development for associations and groups
(architects, club managers, PGA, owners/developers)
- internal training sessions
D. Intangibles
- reputation, credentials, image
- industry resources
- library

Owner/developers, must insure that function issues take precedence over aesthetics if they are to achieve the expected benefits of a clubhouse project. They must use futuristic visualization in the design and document review process and they must have competent operational expertise representing their interests. Smart developers do not allow operational mistakes to undermine overall project goals.

About the Author
Jerry N. McCoy, MCM, is one of only eight individuals in the country to have earned the designation Master Club Manager (MCM) from the Club Managers Association of America. Mr. McCoy is a graduate of Michigan State University and has studied club construction and renovation at Auburn University, Cornell University, and the Graduate School of Design at Harvard. He has been a lecturer, teacher, and adjunct professor in club operations. McCoy’s monograph The Value of Contract Documents in Club Construction and Renovation is the only definitive work of its kind targeted at club managers. He is presently a Club Operational Specialist (COS). Questions can be e-mailed to CMAAMCM@MSN.com

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Article 6
The Well Dressed Club Manager "A Parable"

The following is paraphrased from a story by Max Lucado, Memorial Day, 1996

For years he owned an elegant suit complete with coat, trousers, even a hat. He considered himself quite dapper in the outfit and was confident others agreed.

The pants were cut from the cloth of his good works, sturdy fabric of deeds done and projects completed. Some studies here, some seminars there. Many other managers complimented his trousers, and as he will confess today, he tended to hitch them up in public so people would notice them.

The coat was equally impressive. It was woven together from his convictions. Each day he dressed himself in deep commitment to the industry. His emotions were quite strong. So strong, in fact, that he was often asked to model his coat of zeal in public gatherings to inspire others. Of course he was happy to comply.
While there, he would also display his hat, a feathered cap of knowledge. Formed with his own hands from the fabric of personal opinion, he wore it proudly.

He often thought that surely his best friend, a fellow manager of some prominence, was impressed with his garments. Occasionally he strutted into his presence so his friend could compliment the self-tailored wear. The friend never spoke. His silence must mean admiration, he convince himself.

But then the wardrobe began to suffer. The fabric of his trousers grew thin. His best works started to become unstitched. He began leaving more undone than done, and what little he did was nothing to boast about.

No problem he thought. He will work harder.

But working harder was a problem. There was a hole in his coat of convictions. His resolve was threadbare. A cold wind cut into his chest. He reached up to pull his hat down firmly, and the brim ripped off in his hands.

Over a few months his wardrobe of self-righteousness completely unraveled. He went from tailored gentleman's apparel to beggars' rags. Fearful of admonition from his friend at the tattered suit, he did the best he could to stitch it together and cover his mistakes. But the cloth was so worn and the wind was so icy. He gave up.

On a wintry afternoon he went to his friend, not for applause, but for warmth. His request was feeble.

"I feel naked."

"You are and have been for a long time."

"I have something to give you," he said. He removed the remaining threads and then picked up a robe, a regal robe, the clothing of his support and understanding and wrapped it around the friends shoulders.

I have a hunch some of you know what I'm talking about. I have witnessed these fine suits of cloths of some of my colleagues. I too have modeled such cloths in the mirror. The cloths will get worn.

When that happens to you, remember the nature of the industry you have chosen. We are in the hospitality industry. It is a lifetime of service to others. Be humble about your successes as the six figure opportunities come your way. Be there to help others. Remember the support you have received from family and friends when the tears appeared in your fabric. Take a moment to stop, reflect and refocus. This is how real progress can be made.

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Article 7
Comparing Companies, Churches & Clubs
The following is an excerpt from 'The Service Gauntlet' handbook on strategic planning and club operational thinking
The Corporate Dilemma - Customers Versus Investors

Companies have a relationship with its investors. This relationship is based on the expectations of a return on investment. Some investors want an immediate profit. Others are willing to forgo short-term profit for longer, more stable returns.

Many times companies make decisions to the benefit of the investor, or the customer, to the detriment of the other. These strategy decisions can pay dividends or backfire on the company leadership, depending on the success or failure of the decisions and the company's ability to reason their way or sell their decision to both investors and customers.

In cases where companies are focused on the primary mission, goal, objective and strategy, progress is normally the result. By interchanging satisfaction for the profit, the primary template can be changed to represent corporations. The primary mission is the profit motive. The primary goal, objective and strategy remain the same.

Primary Template - Corporations
Value, provided by quality products and services, based on effective product/service delivery systems, promotes the primary mission of profit in companies and primary mission of satisfaction in clubs.

It is simple to see that, when a company damages its customer relations for short-term gains, it can damage its long-term success. It is also well documented that, when a company forgets about its primary mission of delivering a return on investment, present and future investors will take their investments elsewhere.

The key element in business is the principle that decisions affecting both the investor and the customer lie with the company management. Most of the time, decisions are made with no input from those that are most affected by the decisions.

Church Templates and Gauntlets
A church is at the opposite end of the spectrum. The customers and investors are the same people. Investment is voluntary. The church must have a good product that delivers a high level of satisfaction or the customer/investor will not support the church or invest either money or time in its success.

When a church is providing a high level of value and satisfaction, the customer/investor will gladly take on the added responsibility of becoming the advertising, sales and marketing arm of the church. They will proudly encourage others to join and make voluntary contributions.

For a church to be successful, it must stay focused on the primary template of its existence. Obviously, religious organizations have a subjective draw with the fundamental principles they may represent. A church may believe it has its own primary template based on these principles. However, its real primary template is the same as the one introduced here. Satisfaction - Value - Service - Service Delivery Systems.

For the church to stay on mission, it must continually use gauntlets to test ideas against this template. A member must get satisfaction from being spiritually feed. When the church strays from its primary template, growth and financial progress will be affected.
The success of the church, in its ability to satisfy the customer and investor simultaneously, is also the pattern for corporate success. The benefit for the company is excellent word of mouth advertising, which will breed continued growth.

Success for Clubs
The goal of a club should be more like that of a church. A club also has investors/customers in the form of members. The initial investment is voluntary. Future investments are mandatory if one is to retain membership and protect his or her original investment.

Remember, when members continue to use the club, buy products, and pay dues, they are making purchasing decisions. In clubs, progress can be measured by the level of a member's willingness to continue doing business with the club. Success in the club industry requires that the club continue to reinforce the fact that, by supporting the club, the member made a wise decision based on receiving good value for the investment.

A corporate decision may have a positive impact on either the customer or the investor to the detriment of the other. In both churches and clubs, decisions must have a positive effect on the customer (member)/investor. Therefore, the need for communication between the leadership and a church (or club) constituency is enhanced over that required by a corporation.

A club should examine this principle and understand the benefit of staying focused on its primary template and continuing to test new ideas against it by using gauntlet thinking. As satisfaction and value grow within the membership the result will be similar to that experienced in a church. The members will readily accept the role of salesperson.

As long as a member is getting a high level of satisfaction and good value, based on the excellent service received, they will be happy to advertise, market, promote and sell the club to their friends and business associates. The club membership roles will remain full and long-term success should be a direct result.

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Article 8
Are You Ready to Hire a Shooting Star
"A Case Study"

It just wasn't happening at the XYZ Club. A few years earlier they had invested several million dollars in a new swim - tennis facility including a beautiful indoor building. The tennis professional had been there for many years, and although there was nothing really wrong, there was no excitement.

New members had flocked into the club and activity was high. The swimming program was the best in the region and guests envied the beautiful pool complex. Tennis programming on the other hand was just flat. Finally the committee had waited long enough. They suggested to the General Manager that it might be time for a change. After discussion they all agreed that the program needed to be revitalized. The members wanted to hire a great professional that would come in and turn the program into one that would compete with the best in the state.

The GM was in total agreement. However, he noted that the club would have to sweeten the pot on the compensation program if it wanted to get the right person. It was suggested that the club would have to pay another $20,000 or so. The Board authorized the increase and the GM went about the process of advertising the position and culling the resumes down to about a half a dozen good candidates.

The committee was actively involved in the interview process and after some jostling over the final two individuals, a new professional was selected. They believed they had found the right person to bring real excitement to the tennis program. The members wanted a better junior program, more competition at the higher levels of adult play and a higher quality selection of merchandise. They hired the right man for the job.

This individual was a real dynamo. He was highly respected by his peers and had delivered a tremendous athletic and social experience at his last club. He came in with guns blazing. There were immediate improvements in all areas of programming, merchandising and maintenance. He expected and delivered excellence even to the point of stepping on a few toes of certain members and other fellow department heads. But it was obvious he was right - most of the time. If anything the GM had to hold him down a little.

The members were enthusiastic and new members started joining just to be a part of the excitement. Everything was great - except one thing. Any good manager will tell you that they need resources to accomplish great things. He used solid arguments and pressed hard for more money at every turn. In two years the tennis budget went from $150,000 to $225,000.

The finance chairman thought that things were out of control. Budget issues were no strangers to the XYZ Club. It seems tennis was a big sponge that just sopped up resources without generating any new operating revenue. It is easy for Board members to stay in the operating mode and forget the new member initiation fees and ongoing dues contribution.

Does this story have a happy ending. So far - so good. Things have slowed down some. The budget has stabilized and even a few small cuts have been made. The program is still dynamic and is a feather in the cap of the XYZ Club. What is the moral of this story?

Be prepared for the following:

• A shooting star will expect more resources so they can accomplish their goals. If they are not given the financial budget support they need, they will get very frustrated and probably will not stay. Evaluate the fact that maybe the club was not spending enough in that area before the shooting star was hired.

• They will step on a few toes. A shooting star will make a few enemies. They will, however, generate a lot of support for their successes.

• A shooting star will raise the bar for others in the organization. Members may begin comparing other department heads to the shooting star and may become disgruntled in other areas. Remember - it is all about making positive change in the organization.

• The GM will always be judged by whom they hire, even if there is complete support from the committee. The search and selection process may be the most important thing a GM does at the club.

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Article 9
The Golf Membership Cap - What Is Right?

Normally there will be a cap established for the number of full golf memberships that are allowed at a club. This cap is usually based on what was determined in the past as the amount of members that would be comfortably accommodated by the golf course. Caps vary substantially from club to club and based on the region of the country. Obviously, those clubs in the north with restricted playing seasons may have caps that are less in number than a club in a climate that allows for year round play.

A cap may have been established many years ago by the bylaws of the club. It may be the result of a developer making a determination prior to a membership takeover. In the south for example, the number 450 is used with regularity as the number of family memberships that an 18 hole course can reasonably accommodate.

Unfortunately, blanket approaches such as this may be causing harm to many private clubs. We suggest that the cap may be better served if it has the flexibility to move with the changing habits of your membership. DD suggests that clubs should base their golf membership caps on compaction of the course. Let's look at the following example.

Assume that a club was playing 34,000 rounds of golf five years ago. Today with the same membership levels there are 26,000 being played on the same course. The reduction may be due to the changing habits of the existing members or the change in the type of member that the club has taken in the last five years. It also may be due to the economic factors that require members to spend more time tending to business and less on the course.

If the club was comfortable with the higher levels of play, then it would appear that there is space available for more rounds of golf and therefore, more members. A higher level of members will strengthen the dues base and offset rising the rising cost of operations. DD suggests that a club may be better served by managing the membership levels based on facility usage and not some arbitrary historical number. This concept should be used for all types of membership.

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Article 10
"The Next Major Trend for Private Clubs"

The recent Club Managers Association of America National Conference exposed participants to the newest product and service ideas available in the industry. The conference was also an outlet for the latest educational opportunities and creative ideas being implemented at the finest clubs in the world. It is important to share that vision that was presented to managers with club directors.

To that end we have decided to examine the status of our industry as presented at the conference and discuss what may be the biggest trend for the future. To help us with this examination we have tapped one of our own. Jerry N. McCoy, MCM, is President of Clubwise Consulting a firm specializing in membership surveys, strategic planning, master planning and capital asset replacement. As one of only a handful of individuals in the country to have received the designation Master Club Manager (MCM), Mr. McCoy is recognized as a leader in educating managers and club boards on the latest trends facing the private club industry.

Clubwise - Mr. McCoy, thanks for taking the time to visit with us.
McCoy - It is my pleasure.

Clubwise - When club leaders look at trends are they are looking for ideas they can implement that may help provide solutions to their problems? What exactly should leaders be looking for when they examine trends?
McCoy - It is great to find a good idea that someone else has already tested. But I don't think club leaders should be focused too much on individual ideas. An idea that works well at the club across town may be detrimental to their own club. Leaders should be developing systems that will allow the club to test ideas for value. Testing will allow them to accept and reject ideas based on the individual needs of the club. They then will be better positioned to deal successfully with the myriad of problems that they may face. The number one trend that will impact clubs in the future is the level in which Boards educate themselves about the club industry so they have the informational resources to make good decisions.

Clubwise - What has led you to this premise?
McCoy - To answer that question we need to review a little history. Our industry has never been a leader in adopting progressive management models. In the 1960's most clubs were still operating with individual department heads reporting to an unpaid volunteer Board that gave guidance, many times to an excess, and other times only on a part time basis.

As associations representing the club industry profession grew in stature, they helped promote the professionalism by offering opportunities for growth through continuing education. However, it wasn't until the seventies and eighties that professional associations really concentrated on education as the number one priority.

This education push promoted progressive philosophies to management professionals.

This group of managers took that new knowledge and put it to work to the benefit of their clubs. Individual managers benefited personally and professionally from the specific educational opportunities that were being offered.

At the same time general manager and chief operating officer concepts were being used regularly in the business community. Progressive leaders of the professional associations, like CMAA, promoted these concepts in private clubs. Young managers were joining the industry with a higher level of formal education than their predecessors. This new breed of manager had been exposed to successful organizational structures and expected no less in the clubs they were running.

A new type of director also became more of an influence on club boards. Directors who have spent their careers in the corporate environment were willing to give management the authority to act, as long as management accepted the responsibility for their actions and were willing to be held accountable. Clubs have since benefited from adopting these sound management principles and this progression has been a very positive one for private clubs.

Clubwise - Has the rapid development of golf facilities and the rise of management companies had an impact?
McCoy - Absolutely, and in a major way. One of the biggest impacts has been in their use of marketing. Private clubs now see that marketing can play an important role in member owned clubs. It is the job of a club to continually reinforce the fact that the member is making a good decision by paying dues and sponsoring new members. Advertising, marketing and sales were all dirty words to private clubs not too long ago. Today they all have a role to play in the financial success of the club. The leadership in the more progressive clubs has embraced a proactive approach to marketing.

Clubwise - You proposed that the next major trend is Board education.
McCoy - I believe there is a different type of individual sitting on club boards today. The directors of today understand that the economic times we are in require them to use all the resources available to make good strategic decisions. Board members want to know more about how the club functions. Boards are run more professionally. They see the value in outside consulting, they do extensive strategic planning and take their fiduciary responsibility seriously.

The Club Managers Association has developed written materials, targeted education sessions to the Board/Manager team and even promotes a magazine specifically for Board members. Newsletters like this one are very popular with club leaders. Managers have been an excellent conduit in getting this type of information to their Boards. Smart clubs are setting aside more funds for education, even in these tough economic times. They see that the small expenditure involved can pay big dividends.

Clubwise - Is there anything else you see as reasons for this trend?
McCoy - Certainly. Board members have gravitated to wanting to know more about what they are doing based on the legal and legislative issues that have permeated our industry this past decade. Privacy, discrimination, liability, HR policies and governmental intervention have all made officers and directors more concerned in making sound decisions during their service on the Board. To combat potential problems in these areas, they demand more information.

Clubwise - Is this really a new trend if club Boards are already concentrating on educating themselves?
McCoy - My comments have been based on my experience with the more progressive clubs. Unfortunately, those clubs with the most resources are the ones that do the best job in this area. Smaller clubs, or those clubs in less populated areas, outside major metropolitan centers, have been slower to get the education that they need. Unfortunately, these are the clubs that are the most in need of good information.

But like anything, success will breed success. As educated club leadership, teamed with a GM/COO, lead the more progressive clubs to even greater successes, other clubs will attempt to copy their methods. The demand will then swell for more educational opportunities by club leaders. These leaders will also be more receptive to outsourcing specialized consultant services that should not be undertaken by the COO.

When manager education promoted during the 70s and 80s the club industry prospered. It has again prospered as more and more clubs adopt the GM/COO management models.

It will continue to prosper again as better educated Boards make effective strategic decisions in the best interest of the membership of their clubs.

Clubwise - We would like to thank Mr. McCoy for taking time to share his thoughts with us. Clubwise believes that educated directors can definitely make the greatest positive change to the private clubs that they lead. Mr. McCoy can be contacted at CMAAMCM@msn.com

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Article 11
The Membership Survey Process - Part I

The results of membership surveys are best viewed as a means to an end, rather than an end itself. Used to a club's fullest advantage, information gathered from membership surveys should serve as a mechanism for interpreting change.

It is important to remember that surveys are only a snapshot -- a picture of membership opinions at a specific point in time. The answers to questions today may be different in six months or a year based on the actions taken by the club's leadership or management team.

Over time the true value of the membership survey process can be seen as member opinions shift favorably in response to those actions.

Clubs use a survey for a variety of reasons. Most surveys have a specific purpose and are prompted by the desire to take action on a major agenda item. A large capital investment, a financial crisis, a perceived operational failure of a change in club philosophy can all initiate a desire to survey the membership.

Initial survey results may show support, or many times reflect an opposite point of view, for those agenda items promoted by present club leaders. Whatever the result, an action plan or market approach can be formulated to change minds or build consensus.

THE SURVEY PROCESS
Unfortunately, it is the rare club that initiates a long-term survey process with the purpose of evaluating periodic progress toward goals. Most often a surveys purpose is to advance a single agenda item.

There is nothing wrong with club leaders taking an aggressive approach to accomplishing sweeping change as long as the measurement of periodic progress is not overlooked. It is proper procedure to survey the membership on a regular basis. Results can be used as a benchmark in the future to rate progress in areas of weakness. Use a generic portion of the survey to evaluate specific operational and facility satisfaction issues. The survey can then include a section timely to the larger issues the club presently faces.

For the survey process to be effective it must have three distinct parts. It is better not to survey at all than to skip any of the parts. They are:

1. Ask for member opinions in an unbiased way.
2. Share the results of the survey with the membership in a timely manner.
3. Advise the members as to what actions have been initiated based on the survey results.
 
So the strategy is to ask for their opinion, tell them what they said, and tell them what you are going to do about it. Unfortunately, the second and / or third component is often left undone. Such omission lead to survey comments such as: "Why should I bother? Nothing ever happens."

Clubs must follow up the survey with a summary of the results and a letter to the membership. The letter needs to include the interpretation of the results and what actions are going to result from the survey effort. It should be continually referenced how survey results have played a part in the undertaking of new club initiatives. This emphasizes to the membership the value of the survey and is a positive marketing tool that builds confidence.

COST VERSUS VALUE
There are many styles of surveys. A variety of companies have developed their own individual methods for gleaning information. Many use different methods to get to the same result. Some methods are much more time consuming and costly than others. When dealing with club surveys more isn't necessarily better.

Clubs should evaluate what they are getting for the overall cost. Spending more per member does not always mean you will get better, more effective, information that is necessary to make critical long term decisions. Clubs also have different personalities. What works well one place may not be necessary at another and the effort may be a waste of money. Let's examine the elements of a survey.

IN-HOUSE OR OUTSOURCE
Clubs undertaking a membership survey have two resources. They can undertake the process in-house or they can outsource the survey to companies, or individuals, specializing in this area. Although most clubs would be better served by hiring a professional, there are instances when they can accomplish and effective survey in-house. Some companies may argue that undertaking an in-house survey is like operating on oneself. There are, however, some instances where it can be cost effective to survey using club staff and, at the same time, generate credible information.

An example would be a newly hired general manager with some survey experience undertaking a survey. The membership would perceive that person as unbiased with no reason to mistrust the results. There are other instances as well where clubs can complete the process without professional help. It is important to thoroughly evaluate the circumstances before taking such an action. If the membership feels uncomfortable with the process the survey can become tainted.

FORMATTING QUESTIONS
Skeptics are concerned that bias will effect the results. It is argued that the architect of the survey can direct a result equal to their agenda. The format of a question can impact the answer and slant the results. If a member were to be asked, "Do you want an improved fitness center?" the answer may be yes. However, if they are asked," Do you want your dues increased to pay for an improved fitness center?" the answer may be no.

It is best to ask all the necessary parts to each question so that the answers can be completely evaluated within the context of all pertinent facts. For example, it is never good to ask a member if they want to build a new clubhouse. The member must know how much it costs, how much will it cost them, what inconveniences they will incur during the process, does it have the services they want and so on and so on. When the purpose of a survey is a major capital project it is always best to deal with a professional surveyor.

ANALYZING FACILITIES & SERVICES
Every survey should have two sections at the beginning that deal with the service areas and the different facilities of the Club. This is true even with a survey that deals with long-range planning and capital issues.

Members should be asked to rate both the services and facilities of the club. The numeric answers to these to sections can now be used to compare to future surveys with the same sections. Examples of items in each of these sections may include the following:

Services / Facilities
1. Front Desk 1. Clubhouse Exterior
2. Business Office 2. Clubhouse Interior
3. Club Newsletter 3. Main Lobby
4. Valet Parking 4. Main Dining Room
5. Golf Shop 5. Public Restrooms
6. Tennis Shop 6. Men's Locker Room
7. Athletics 7. Ladies Locker Room
8. Swimming Programs 8. Tennis Courts
9. Responsiveness of Management 9. Golf Course

Of course the above lists will be personalized to each club. Normally under the services section all the food and beverage outlets could be listed separately.

TYPES OF ANSWERS
Most systems for answering allow for a series of answers that will offer the ability to judge subtle differences. Rather than giving choices of good, average and poor a better format would allow for excellent, good, average, needs improvement and poor. This sequence allows for a more realistic evaluation of a problem. Does a service need improvement or is it horrible. The following are some of the sequences presently being used:

1. Excellent - Good - Satisfactory - Needs Improvement - Poor
2. Excellent - Above Average - Average - Below Average - Poor
3. Strongly Agree - Somewhat Agree - No Opinion - Somewhat Disagree -Strongly Disagree

Satisfaction versus Importance
There is also the sequence that measures the concepts of satisfaction and importance. The argument follows that those areas of most importance should be acted on in a priority fashion. The sequence may follow: Very satisfied - Generally satisfied - Needs Improvement. Then on the same line the sequence: Very Important - Somewhat Important - Not Important.

Research has found that the importance rating is directly proportional to the amount of members answering the question. Therefore, an importance rating can be determined by asking members to respond to only those questions that represent their particular use of the club. Then evaluating the response rate for each question versus the total number of surveys returned.

Is the Club Improving?
This may also be an area that can have informational value. By asking a respondent to rate a service or facility with an Excellent- Good - Fair - Needs improvement - Poor sequence and then ask them to answer a sequence similar to Substantially Improved - Slightly Improved - Stayed the Same - Gotten Worse could allow the club to track progress. It may be important to know that most average answers have a slightly improved attachment versus average answers that all say - gotten worse.

A club could also follow-up a survey six months or a year after the original with a survey using the same service and facility classes but using the answer sequence that tracts improvement. This may be most successfully used when evaluating food and beverage products and services.

SURVEY SORTING
Qualifying questions allow the survey to be sorted by groups of respondents. Membership class, age and number of years in the club seem to be the most common sorts used in the survey process. Most surveys have a tendency of sorting the information into a variety of groups. Many times, the work necessary to process the data in to small sub-groups goes to waste, as the information is really irrelevant to the big picture.

It is normal for clubs to want to sort surveys by classes or groups. However, when you combine the sorting procedure with the response expectation, the number of expected answers could come from such a small percentage of the membership as to make the answers irrelevant. Most of the larger survey companies package a full array of sorts.

The more voluminous the finished product, the more it justifies the fee. There are survey results of 100 pages or more. This amount of information obscures the critical elements. It is better to have easily identifiable, clear results for Boards and Committees.

There are companies that will reduce the cost based on the work required. The less the sorts, the less time required to develop the statistics and analyze the results versus big picture. More is not always better. It is the analysis of the statistics that can have the largest impact in the future.

PART TWO - part two of this article will discuss the analysis process. Topic will be formatting statistics, analyzing written comments, the concept of spouse's surveys, focus groups (when and how), disseminating information to the membership, surveying for large capital projects and which consultant may be right for you.

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Article 12
Membership Surveys - Part II "Is that your final answer?"

The first part of the article on membership surveys was the May Article of the Month. Part II deals with finishing our discussion of survey elements and proper analysis of the results.

Part one of this article dealt with the reasons for surveys and how they should be undertaken, question formatting, response styles and the sorting process. The most critical aspect of a survey is effective analysis of the results. Part II will examine how best to analyze the statistical information and written responses.

WRITTEN RESPONSES
Every survey should give the opportunity for a written response. It is best to have a section of the survey set aside at the end for these responses. It is inevitable that some members will write all over the place. However, if room is given at the end, most will use the space available. It is important to note on the survey to keep your written answers brief and to the point. Many members will ramble extensively. As will be established latter, the written responses are the most important aspect of the survey.

It is common to offer a place at the bottom of the survey for members to sign, give their phone number and ask for a call back to discuss their responses. This is optional, but allows for those members wishing to do so an opportunity to speak to someone about their concerns. Normally one third of the members will sign their survey but only a handful will request a call.

In many clubs there is a concern for the spouses point of view. Some clubs have convinced themselves that it is best to send two surveys to each individual member - one for the member and one for the spouse. Double surveying however is often costly and produces similar answer patterns for both the spouse and the member.

RELIABILITY OF RESULTS
Most survey companies will give the club both the exact number of answers by question sorted to the club's needs and the numerical average of the total responses. The totals allow you to see the impact of the number of responses by category and compare that information to the total membership demographic.

A 40% or better response rate would be considered very reliable information and would closely represent the opinion of the total membership. It is the opinion of this writer that the reliability index is as follows: 40% & up - very reliable, 30-40% - good reliability, 20 - 30% - fair reliability, under 20% - Marginal

It should be noted that in surveying, as in any other aspect of life, people will show up to vote no. A very low survey turnout could be considered positive, as there may be no real issues of concern. It could also mean apathy has set in and there is a distrust of the leadership.

It is important that the survey is marketed and responses encouraged. One may even consider a contest or reward for early responses. It is important to generate reliable information - be it good or bad - if future progress is to be made.

FORMATTING RESULTS
The finished survey should have the following components:
1. Statistical overview
2. Consultant's analysis
3. Totals sorted best to worst
4. Answers sorted by category and value
5. Survey data totals
6. Member comments by category
7. Consultant's report to the membership

1. Statistical Overview
This section details the response rates versus the number of surveys mailed and returned. Total comments are counted by category. The survey format is explained so that the reader can decipher the information correctly. The survey layout is explained and a table of contents is provided.

2. Consultant's Analysis
This is where the quality of your survey firm is important. Operational experience is critical to evaluate the subtleties in answers. They can identify issues and suggest actions that may be taken by either the Board of Directors or club management.

Many times a survey will uncover many very small problems that can be dealt with easily. Sometimes these small problems are a statement of larger, underlying issues that deal with facilities or club policies. The right consultant can help evaluate the problem with sensitivity to the management that has to correct the problem.

3. Totals Sorted Best to Worst
These totals paint a glaring picture of what is rated highest and lowest. It is important to understand both the rating level and the mean. If the lowest rated item is still evaluated good, then there are very few issues. However, if the highest rated item gets less than an expected quality rating, then there may be real problems.

The mean shows the average answer. Some club memberships may not be as difficult to please as may others. The quality of the facilities, products and services may be the same in two different clubs where the overall average of the survey answers is quite different. It is dependent on where the club is on the road to excellence.

A club that began with serious quality problems and has made progress may rate higher than a club that has delivered at an extremely high level for some time and has slipped just slightly in its services. Once a product or service has been delivered more effectively than before, that delivery will soon become the standard of minimal expectation in the future. A consultant with operational experience is most helpful in analyzing these issues.

4. Sorted by Category and Value
These sorted answers allow you to see the differences in the answer patterns between categories of members. It is important to understand what new, younger members may want in relation to other groups. Are older members as interested in new facilities? Is there a growth in the need for children's programs? Most importantly, how skewed are the answers in favor, or against, an issue in any one group of members.

5. Survey Data Totals
Management generally uses this information for the purpose of reviewing total responses of a group. The number of responses can help validate the answers of that group. A survey may have a 40% response rate but have only 15% of a specific group represented.

6. Member Comment Category
As noted earlier this is the information that will potentially modify the answers to the survey and solidify the real problems. It takes a trained operational eye to analyze the written responses and categorize them into information that can be understood and used effectively by the leadership of the Club.

Answers should be grouped into key areas such as membership, operating departments, finance, policy, rules, Board or Staff. An effective consultant can group similar responses under one written comment that represents many slightly different worded answers.

Comments should be listed by category, with issues receiving the most responses listed first, and on down to those issues receiving only one comment. The leadership can review the comments easily in this format and see immediately which issues received the most comments. I have seen survey reports listing all comments verbatim. If there is interest in reading the comments in this fashion, it is best to review the surveys individually.

Negative comments about individuals should be listed separately from the finished survey package. Members may read the completed survey in the future and disparaging remarks should not be a part of the permanent historical document. These comments can be dealt with as needed from the separate enclosure.

It is important to know what percentage of surveys had written comments. It may also be valuable to note the number of surveys with more than 3 comments. If a Club receives 100 surveys with written responses and 500 comments that would be an average of 5 comments per survey. However, if 75 surveys accounted for 250 comments, then the balance of 25 individuals, who wrote profusely, made 250 comments on issues or 10 per survey. These 25 individuals obviously form the core nucleus of the most disgruntled members.

7. Consultant's Report to the Membership
The consultant's report to the membership is a separate document from the survey results. It is a summary of the results in a concise readable fashion. The summary includes the statistical profile of responses, categorized results and a brief written overview from the consultant's perspective. Normally this is presented to the leadership for their review before distribution to the membership. In most instances a cover letter from the Club President would be included.

Many clubs will call a meeting of the membership for the consultant to present the findings of the survey. This adds credibility to the process and allows the membership to ask questions or get clarification on issues of importance.

SURVEYING FOR CAPITAL PROJECTS
Surveys should not be used to market or sell a major capital project. Surveys will uncover weaknesses in facilities and services. They are part of the fact-finding portion of long-range planning. Capital projects can then be designed to satisfy those deficiencies. They can be marketed as a response to the needs of the club as determined by the survey results.

SUMMARY
Strategic business modeling is the process of defining success and measuring your progress towards those goals. This is the way the business world measures its success and forms strategies for the future. The goal of any business is to find gaps between its mission and it's performance.

Membership surveys are a key aspect of the measuring process in clubs. A survey is a form of performance audit. The process should be taken seriously by both club management and the officers and directors. However, don't enter into this fact-finding process with a thin skin, as the return volley could fall close to home. The whole purpose is to uncover deficiencies and take action to better satisfy your constituency. Your image as a club is better served knowing that you have asked for opinions even if you don't like the answers.

In most cases it is necessary to retain professional help to effectively complete the process. There are many companies available to assist clubs. It is important that any survey firm have operational expertise and no hidden agenda. Beware of firms that:

1. Would like to do future work for the club based on survey results.
2. Will deliver statistics only and has no operational insight.
3. Actively manage other clubs that may, or may not be, in direct competition.

This is not to say that all firms falling into these categories should be avoided, only that the club, it's management, and operators understand the relationship in advance of entering into any agreement.

Surveys are only one part of the fact-finding process. There are also focus groups, committees and other solicitations by the club leadership that can generate the information necessary to construct strategic plans for the future. The major issue is that clubs need to be thinking strategically. Remember the following model and establish it as a policy in dealing with members and employees.

1. ASK THEIR OPINIONS
2. TELL THEM WHAT THEY SAID
3. TELL THEM WHAT YOU ARE GOING TO DO ABOUT IT

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Article 13
"Best Practices for Club Boards"

The business world has generated a clear set of principles, a model so to speak, for success. There have been hundreds of books published targeting these principles. These books identify a series of best practices, which if followed, will lead to a favorable outcome. There is hardly anything left to say. Concepts that are promoted as new ideas are basically just a new look, or twist, to an old practice.

If success is so easy, so readily mapped out with a clear to-do list, why do so many businesses fail? The answer is simple. It is not the concepts that are bad; it is poor implementation. Either we don't make the right assumptions or we do not follow through on those functions we know are necessary for success. It all begins with the leadership of the organization.

Private clubs are no different than any other business. Some clubs are on a clear track to progress. They have an enviable record of success in dealing with the difficulties every business faces. Other clubs are mired in mediocrity, unable to win the smallest battles. If we are to overcome mediocrity, it must start with positive leadership at the Board level.

It is appropriate that we take another look at these basic principles from a new perspective. What can the Board of Directors do to promote positive change? It may be easier to understand how to be successful from a business perspective if we look at the concepts from the eyes of hourly employees and their supervisors. The Board of Directors should adopt the same concepts that management uses to make employees successful. They include:

1. Picking Good People
2. Providing Extensive Orientation
3. Having a Clear Understanding of Roles and Responsibilities
4. Knowing the Vision of the Organization
5. Having a Method of Testing Ideas
6. Communicating Clearly
7. Being Able to Delegate - While Providing Oversight
8. Encourage Feedback
9. Providing Good Planning Facilitation
10. Fund Continuing Education

It is not necessary to argue the benefits of these concepts from an employee / employer perspective. The success of these concepts is well documented. If they promote operating effectiveness, they should work at the leadership level. Let's examine this premise further.

1. Picking Good People
It is a serious endeavor when a Board goes about hiring a new General Manager. They understand the need for good leadership. The GM takes seriously the addition of key department heads. A good organization has effective practices in place to hire hourly employees. Boards should be no different.

A selection, or nomination, to the Board should require that the individual have the experience necessary to be effective. It is not only important that the candidate have a good business background. Board candidates should have served on at least two club committees for a combined total of at least three years. They should be interviewed by the nominating committee and understand the scope of responsibility of the Board.

Friendship and cronyism should not be a part of the selection process. The Board should be represented by individuals from all member segments. There should be a clear progression up the chairs to promote continuity of leadership. The immediate past president should remain on the Board in some capacity. Specialists in legal and accounting can be un-elected and independent.

2. Providing Extensive Orientation
We try to insure that hourly employees get a good start to a new job. The goal is to make new people feel comfortable in the new surroundings and set them up for success so that they can immediately be as productive as possible. We have heard the stories about how successful company orientation programs (Disney, etc.) have paid giant dividends in productivity. New Board member orientation is just as important in private clubs.

Obviously the purpose of orientation is to disseminate information. It is important for new members to understand policies, systems, history, organization and a myriad of other information important to making clear decisions on the future of the club. Many clubs prepare an orientation book that includes most of the information that may be needed. The Board, or selected group of Board members, along with the GM and possibly other key staff members, normally meets with new members prior to their first Board meeting.

Some clubs are taking an even more proactive approach to orientation. There are professional consultants, with extensive operating experience, which can lead and facilitate Board orientations. Not only is this a good orientation practice, it can also assist the Board in setting goals and establish priorities for the year.

3. Understanding Roles and Responsibilities
A good employee can identify with their role in the organization. They understand their responsibilities and direct their efforts to the best interests of the club.

Although this is a normal orientation issue for both employees and club leaders, it needs its own examination. Too many times there is a misconception as to how the Board should function. It is critical to provide a clear delineation between the role of the Board, as the policy and oversight entity, and management, as the operating entity.

The Board should establish measures to deal with those issues that clearly fall under the responsibility of management. The worst thing that can happen is for a Board to get entangled in trying to operate the club. Operating problems that should be left to management professionals waste precious Board time and resources that are better spent on planning.
 

4. Knowing the Vision of the Organization
No business can make real progress unless it has a keen understanding of the overall mission. Employees' productivity will suffer if they do not know the goals of the organization or management has not established a clear vision for the staff. The effectiveness of Board performance is also based on a clear understanding of the club's mission and being able to provide a clear vision of how to satisfy that mission.

Developing the vision is about adopting sound practices in strategic planning, or a 'create the future' mentality. This process is normally best done with an independent facilitator. There are several good companies that specialize in strategic planning for clubs. It is however important to insure that the company selected understands clubs from an operating perspective.

5. Having a Method of Testing Ideas
It is sometimes difficult to separate a good idea from a bad one since what may work at one club may be destructive at another club. Employees may be timid about suggesting new ideas for the fear that they will be rejected or fail. The failure will then be attached to them. The worst scenario is to set a good idea up for failure by not insuring the proper resources are available to insure success.

Many times employee ideas can be tested before implementation to insure they are cost viable and promote positive change. Clubs need to test ideas at the leadership level to insure that they are a cost viable addition to the overall mission. This testing process can be made easier if leaders understand the basic mission, goal, objective and strategy of all clubs.

A club's basic mission is member satisfaction. Providing good cost / value relationship generates satisfaction. Members want to know they are getting good value for the money and time they spend at the club. Since the club is a service business, a good cost-value relationship is generated from providing excellent service within the budget confines of the organization. The strategy then is to fulfill the objective of good service by promoting effective service delivery systems. Boards need to test ideas with the following premise:

• The basic strategy of all clubs is to promote effective service delivery systems

• Having the primary objective being excellent service

• With the central goal of providing good cost / value relationships

• Which will fulfill the overall mission of generating member satisfaction

Ideas must have the overall effect of generating greater satisfaction regarding club membership by providing a positive perception of value. For good ideas to be successful they must have the service delivery systems in place to allow them to succeed.

6. Communicating Clearly
How many times do employees fail because they don't understand what they are supposed to do? They may not hear correctly or may perceive communication differently than was intended. Good communication affects performance, but it also affects the overall perception of the organization. If an employee is not kept informed about why decisions have been made, they will many times fabricate their own reasons.

Members have the exact same fallacies. Members should be kept informed on the position of the Board regarding the important issues facing the club. They need to be given reasons why the Board has adopted the present policies. If they are not informed they will fabricate their own assumptions that may not necessarily be based on fact. Once fabricated, these assumptions will develop a life of their own. They may eventually be represented as fact by a broad cross-section of the membership.

Good leaders should not be afraid of the decisions they have made. Competent leaders understand that they may be criticized for their decisions. It goes with the territory. One club expert put it this way, "The most successful Boards may be the least liked during their tenure."

7. Be Able to Delegate - While Providing Oversight
One of the worst things that can happen to an employee is to be micro-managed. He, or she, believes that their supervisor does not trust them. They are never able to learn and grow based on personal success and failures. A good manager knows how to balance the delegation of responsibility with providing a safety net for the organization. They can provide a sense of purpose while attaching the necessary accountability that comes with responsibility. Effective managers provide evaluation and oversight. They also mentor based on need.

Great Boards are like effective managers. They have all the same skill sets and follow the same solid concepts that work so well for good managers. Most of all they have a clear delineation between their role of oversight and mentor and the manager role as COO.

8. Encourage Feedback
Employees look for feedback from the manager on how they are performing. The best managers look for feedback from the employees on how they are doing. The concepts of giving and receiving feedback has been a weakness of private club Boards.

The Board must have a comprehensive evaluation process in place for the GM/COO. The process should be ongoing and include opportunities for an exchange of ideas. This is part of the Board's oversight responsibilities.

There also must be a concentrated effort by the Board to generate member opinion about their club experience. Retail businesses understand that their success is based on customer satisfaction. A large amount of money is spent annually by businesses on customer satisfaction and opinion polls. The purpose of these surveys is to provide businesses with the information necessary to become better at what they do in the eyes of the customer.

Surveys allow managers, companies and Boards to measure progress. Surveys set benchmarks based on performance. Future survey responses can be measured against those benchmarks. Progress can be monitored and business practices can be evaluated for effectiveness. A comprehensive membership survey is an important tool in this process. Other feedback systems that allow for members to evaluate individual experiences are also important. Keep egos out of the process and don't be thin-skinned when it comes to criticism. If members don't like something, then it is best to know it so that change can take place.

9. Provide Good Planning Facilitation
Seldom is there enough time spent on planning. Employees are not given much time to plan because that would cut into their production. So when planning is sacrificed, operating problems occur more frequently. Many managers run around putting out fires rather than making enough time to plan so that those fires do not occur in the first place.

This is not an uncommon occurrence with club Boards. It is easy to get wrapped up in the minutia of specific member concerns or small operating problems that seem to take forever to solve. The Board needs to set a concise agenda on what it expects to accomplish in both immediate and long-range terms. The plan must continually be revisited since the club is always in the flux of change. That requires that the Board must always be planning ahead for the next change.

Many times this requires the Board to set aside special times to plan. Meeting agendas should be cleared regularly for planning sessions. If time at regular meetings appears scarce, then extra time must be scheduled. Independently facilitated strategy sessions, Board retreats or outings are just some of the tools used by successful Boards.

10. Funding for Continuing Education
In corporate America it is not uncommon to have 1% of total revenues set aside for staff development. This equates to $30,000 for the $3 million club and $60,000 for the $6 million dollar club. These amounts were seldom funded in clubs even when the economy was good.

Companies run on people. So it is smart business to invest in people at all levels including employees, supervisors, management and leadership. Clubs are unique environments. The better trained an employee, the more productive they will be to the organization. The more educated club Boards are on industry best practices, the better long-term decisions they will make.

There is a myriad of written material available to help club leaders. Professional associations sponsor joint sessions for Board members and the management team. Independent consultants provide thought provoking programs on how to make positive change occur in the organization. It is suggested that club Boards set aside the time and provide the financial resources necessary to participate if the variety of excellent opportunities that are available.

In Summary
There is really nothing new here. These concepts are a part of the repertoire of any good human resources professional. Competent managers and club leaders readily understand the ideas. However, it is not about knowing, it is about implementing. Promoting positive change is all about taking actions that will result in movement towards your goals.

Some of the responsibility falls on the shoulders of the GM/COO. He or she must work with the leadership to promote change through implementation. If, in combination with the GM, your Board 'takes action' to adopt these best practices, they will be better positioned to 'act' on the inevitable problems that all clubs face. Positive change will be the outcome. No longer will your club be one that is considered mired in mediocrity.

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Article 14
”Marketing and the Club Newsletter”

In the mid 70's I was a young assistant just starting out in the club business. How to increase readership of the club newsletter was one of the problems frequently discussed by managers. In the past 25 years a more astute management team benefiting from technology innovations have enhanced the industry's ability to offer higher quality publications. If the education and tools are there to do a better job why are we still bemoaning the same problem of how to get a greater percentage of members to read the newsletter? The answer lies in our management priorities.

Corporations have played a major roll in the expansion of the club industry. Unlike private member-owned clubs, corporations make marketing a high priority as they try to sell their products. Only recently have private equity clubs begun to realize that effective marketing can play a major role in revenue enhancement and bottom line financial success. The major marketing tool in clubs today is the newsletter. We must shift our priorities to a sales mentality and adopt an aggressive program to improve our major marketing vehicle.

The past two decades have brought enhanced competition for our members disposable dollars. Our club members are being inundated by the "information age". We have less time today than ever before. It has been noted that in one year the average American will:

• Read or complete 3000 notices or forms

• Read 100 newspapers and 36 magazines

• Watch 2463 hours of television

• Listen to 730 hours of radio

• Talk on the telephone 61 hours

• Read at least 3 books

Added to this is the expansion of the Internet that is also vying for our member's time. It becomes continually harder to insure our communications are read and understood by the membership.

Best Practices of the Publishing Industry
Can Help Solve the Problem

The publishing industry has been facing the same issues. For years they have used industry standard ' best practices ' to expand readership. Four of these same practices can be applied to the club industry to more effectively deliver our message.

1. Be Visually Impressive

Great magazines and periodicals draw readers to them with impressive photographs, descriptive headlines and issues of general interest to their audience. The cover of the club newsletter is an important element in getting a member to pick it up and read it. The cover needs to describe club life visually. Extensive written material or lists on the cover are not effective. Full bleed photographs look professional and enhance the general image of the newsletter.

This same professionalism needs to be carried into the body of publication. Timely art, quality photographs and the latest graphics generate interest in the message. The reader will absorb content and be more informed.

2. Have Effective Content

People do not buy newspapers and magazines for the advertisements. Although box scores and schedules of upcoming events are important, readers spend a majority of their time on the articles of interest. The club newsletter is an ideal time to get important information to the membership in the form of articles and essays. It is a missed opportunity when the general manager uses his monthly column to make small talk instead of providing insight regarding club operating concerns for today and in the future.

This same philosophy applies to the other department heads as well. Share your goals. Discuss how and why things are operated as they are. Introduce the membership to new technologies and ideas for improving club life. Don't shy away from the difficult problems. Confront them in an honest and straightforward manner to head off small concerns before they become big ones. Always be upbeat and positive, as this is an opportunity to build club moral.

3. Use Good Journalism

Written communications skills are a must if you are going to expand to better articles and more essays. Not everyone in your organization will be blessed with the ability to deliver an effective article for the newsletter. However, help is available for a variety of sources. Word processing technology can certainly help with grammar and sentence structure. Proofreading by several individuals is also a way of critiquing content to insure written material is interesting and stays on message.

Most good publications are a team effort. The club manager must assemble the right team to consult on journalistic issues. These people may be anywhere in your organization from the new waitress, to the nighttime receptionist, to the assistant tennis professional. Search out employees with the skills you need on the team. Nothing can impact the quality of your newsletter or do more damage to your professional image than poorly written articles and grammatical errors.

4. Be on Time and on Target

ON TIME - Clubs that spend a sizable amount of money developing a newsletter to market it's programs and services needs to get the maximum effect from the investment. Any marketing vehicle or communicative piece needs to be in the hands of the target audience in a time frame that will facilitate the customer's ability to take advantage of the opportunities presented. If your newsletter arrives at the home of the member later than the beginning of the timeframe covered in the newsletter then the club has not maximized the effectiveness of it's investment.

This appears to be a pretty basic concept. Unfortunately it does not appear to be happening on a regular basis. Clubs need to set deadlines that will insure the mail gets to the membership within a certain timeframe. Strictly enforce time lines and hold subcontractors, if any, accountable for their performance.

ON TARGET - This means on point and on message. We must make sure that all necessary information is included and that it hits the target audience. Advertising for upcoming events needs to be clear as to the details. It needs to be presented in such a way as to be noticeable to that group of members that is being targeted. It is always appropriate to group information by subject matter. Make sure the reader can readily move through the information in an orderly manner. Readers need to find what they are looking for while being exposed to that which you want to target.

The purpose of the newsletter is to market your programs and services. Do not miss the boat by missing the point. Include all necessary current information. Then give them a preview of coming attractions so that they can plan their calendars accordingly.

How You Can Get Results

It is mandatory that a priority be placed on internal marketing. Use the newsletter as the primary marketing vehicle. By making the marketing effort an integral part of club operations it will be a natural evolution towards developing the right team, integrating the technological tools available and enhancing the results through training. Combining these techniques with 'best practices' and the club should see solid results long term.

Technological Tools

The advent of in-house desktop publishing capabilities has given clubs new options. Unfortunately not all clubs have seen improvements to their newsletter as they have adopted this new technology. The reason for the lack of progress could be:

1. The club has not made the investment in the necessary technology (either hardware or software) needed to deliver an improved product. The most popular software being used by clubs today is Adobe PageMaker. Proper Scanners, printers and digital cameras are also necessary. It is important to have a PC with the needed speed memory and Zip drive capabilities because of the large amount of space photos and graphics require. You must invest for success.

2. Necessary training has not taken place so that staff is proficient using the latest technology. These are complicated programs with many bells and whistles. The club should make advanced software training available on a regular and reoccurring basis.

3. There is a lack of creativity within the staff. This is a difficult issue. However, training can overcome some of this problem. Exposure to effective publications will allow even the least creative to become more enlightened.

4. There has been a lack of commitment by the management team. Football coach Lou Holtz pointed out the difference between being merely involved and truly committed to a cause with the analogy that a kamikaze pilot that was able to fly several missions was involved - but not truly committed. Managers must have a mindset that technology is the answer to accomplishing better results.

5. The worst problem of all is the club that has used technology to only save money. The advances in technology are opportunities to improve the product, say what you want to better, with more impact and in a more timely fashion. Those clubs that have used it strictly to save money have done a disservice to the marketing effort. The savings from the use of new technology should be reinvested in the product to make it a more powerful and professional publication.

Take Action Now

Only through the leadership of the general manager will progress be made in the marketing effort. The newsletter is the most logical place to begin. It will require commitment. Congratulations to the individual who said, "the reason some people don't recognize opportunity is that it often comes disguised as hard work. Good managers realize that effort is required if one is to make real progress. Don't procrastinate on this most important area of club management. It is not an area that you can totally delegate.
Your involvement is required. Take action now.

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Article 15
“The Ideal Board of Directors”

The Publishers Perspective from Tom Finan in the August, 2003 issue of CM is must reading for anyone who has decided to make club management a career. Tom's comments on leadership are right on target. However, for great leaders to succeed, or even want-to-be leaders to grow, the organization must have an educated and supportive group of unpaid volunteer leaders as part of the board of directors.

Visionary representatives within our industry have promoted the GM/COO concept as the way for clubs to advance past mediocre authority models and develop a clear management structure that can take the club to the next level. Tom sites examples of great clubs who seem to get it right year after year. But our industry has a long way to go. There are to many examples of good managers, trying to provide leadership, who are stymied at every turn by less than effective boards and committees.

For COO leadership to become the standard expected in clubs then the clubs themselves must adopt sound practices of governance that will support this type of leadership style. What are sound governance practices? The GM/COO has access to a myriad of materials from a variety of associations and consultants associated with the industry. This information has been drawn form successful corporate business models using both for-profit and non-profit examples.

Academics and operating experts have offered different systematic approaches for dealing with governance issues. Many of these experts are making progress within individual clubs. However, even for the best experts to make progress towards better governance, it requires a board of directors who are willing to be introspective.

The ideal club board is - one that understands their role in evaluation and oversight. Not only is the board required to evaluate the operations of the organization, they also realize the need to evaluate their own performance. The problem has been that for evaluation to be effective it is traditionally accomplished using an outside expert/facilitator. The GM/COO certainly is not positioned politically to expose, and then offer solutions, to governance weaknesses within the club. They must walk a fine line that provides resources and guidance to leaders without having the real power to facilitate outcomes.

Tom mentions that in recent years the industry has collaborated well in promoting effective management structures involving COO leadership that, when adopted, are causing real progress to occur in certain clubs. Now Premier Club Services (PCS) has addressed the issue of helping managers improve governance practices so that even more clubs will be receptive to true COO leaders. The Director's Guide for Understanding Club Governance is a comprehensive review of governance best practices. Many of these practices are standard operating procedures within the platinum clubs we regularly examine and hold up as examples to imitate.

The guide can be used to educate volunteer leaders and then provide them with a standardized process of examining sound governance practices. The Guide comes with a Governance Checklist so boards can determine which practices will work best at their club. As the self-evaluation takes place, discussion of all major issues will result. Some practices may not be adopted. However, participating in a f

Once boards become more introspective they will become better. The Guide and Checklist will afford a way to promote the process of better governance in clubs. With better governance will come more opportunities for managers to take charge as a true COO leader.

Tom wrote that "Not every manager is ready to step up to this concept of leadership" and he said it in a very gracious way. As governance practices in clubs evolve to a more effective presence in the organization, unpaid volunteer leaders may be less tolerant of those who cannot take charge as leaders. Stepping up may not be an option in the future, it may be a requirement.

Jerry McCoy, MCM is the President of Clubwise Consulting. Mr. McCoy was commissioned by the Club Managers Association of America's Premier Club Services department to author The Director's Guide for Understanding Club Governance, Governance Checklist and Board Resource Manual. These resources are included as part of the 2003-2004 Premier Club Services subscription package. They can also be purchased individually by visiting the CMAA online marketplace at www.cmaa.org/bookmart.

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Article 16
”How to Become a Great Club”
Good is the enemy of great. This is the title of the first chapter of Jim Collin's best selling book Good to Great. So where does the club industry stand in the battle between being good or really great?

The progress within our industry in the last decades has been impressive. Private clubs today are offering more and better services to their members than ever before. Clubs have more impressive facilities and are better managed. Club employees are more educated and better trained. The recipients of these improvements have been the millions of members who have made clubs an important part of their lifestyle. The industry continues to prosper even when confronted with the economic turmoil that has disrupted many other industries in an uncertain economy.

The driving force that has been instrumental to this progress has been a well-trained management team centered on the GM/COO. Professional associations, led by CMAA have been the driving forces in providing the training and resources necessary for this progress. There is, however, one key group within clubs that still controls the potential success or failure of the organization. This is the group of unpaid, volunteer leaders that are elected, or appointed, to govern the club. The GM/COO can only have a maximum positive impact if he or she is supported by an effective and informed group of volunteer officers and directors.

To that end CMAA, through Premier Club Services, has provided a new tool to educate and inform officers and directors regarding their role in effective club governance. The Director's Guide for Understanding Club Governance, the Governance Checklist and the Board Resource Manual are resources designed specifically for club boards. The GUIDE is an informative review of the best practices in club governance. The CHECKLIST can be used by club boards to complete their own self-evaluation. The RESOURCE MANUAL is provided as a means to complete a total orientation of new club leaders.

A club can only move from good to great if it has a great system of governance. Club management has made tremendous strides due to the fact that they have embraced education and training as the path to progress. The movement from good to great will be facilitated further by developing informed leaders who understand the uniqueness of our industry. As the GM/COO it is your job to help in this process. We encourage all managers to take advantage of these new tools. The effective could be more than good, it could be great.

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Article 17

Master Planning                                             

Ten Steps to Better Results or
       What Not to Do in Master Planning

     We regularly assist club clients as they develop and package effective master plans that will meet the needs of the membership for the long-term. It is amazing how well things go when we follow a few simple rules of what to do and what not to do during the process. By following a set of guidelines the club will save money, make fewer mistakes and generally end up with a quality program.
     With all the case studies available that promote successful planning scenarios, one would think that it would be common sense for clubs to avoid the pitfalls that can spell disaster. Unfortunately this is just not the case. Following is a list of ten major points to consider. There are many more subtle issues as well. However, it is important to start with these ten.

     1. Not including the members in the planning
     This one seems so easy but clubs still make the mistake of not surveying the membership to help identify the appropriate program elements. When the club skips this step they too often find out that they missed important input. Club leaders then have to backtrack and rethink what needs to be included in the program.
     This happened last year to one of our clients. They had spent a great deal of time planning. Eventually we completed a survey. The club found out that they had not considered the need for substantially more fitness services. Once we completed a new plan, with the addition of a new state-of-the-art fitness center the program easily passed.

     2. Finance plans that include membership growth
     It is not wise to plan for new membership growth to help finance a master plan. The club should develop the plan assuming a stable membership level that includes some initial loss and then growth back to present levels. Yes, it is most likely that membership applications will be more plentiful after the project is finished. However, it is speculation, and unwise, to build in growth that may not happen. Including such growth might undermine the expected capability of the club to pay debt in future years.

     3. Including refundable assessments in finance plans
     A classic mistake is to include a fully refundable assessment in a capital finance plan. This saddles the club with future debt that must be repaid. Most members will realize that, the longer they are at the club, the more enjoyment they have received from the improvements. If the club must use some sort of refundability, then they should make it reduce over time. Members will also understand that the longer they are at the club the more they have used up the assets. This is just as saleable to the membership and should not impact a successful voting process.

     4. Negotiate future fees in advance
     The worst mistake a club can make is to hire an architect, or interior design planner, for an upfront planning fee without knowing how much the company will charge if the club passes the project and then begins construction. The fees for developing contract documents, design, installation and contract administration are ways these companies make their money.
     As the master planning progresses clubs tend to rely on the professionals, with the expectation that these companies will complete the future work. If the fees have not been bid in advance, the club is at a great disadvantage when it is time to contract for plan implementation. It is not uncommon for clubs to save up to $250,000 in future fees with appropriate oversight early in the process.

     5. Recognize credit backs
     Some of the work a professional completes as part of the master planning process is work they would have to do if they were hired outright to begin schematic design. The architect is at risk if the project does not pass and should receive the full planning fee. However, if the project passes, some of the work is really a part of the overall fee. Clubs should expect a credit back against future fees for a portion of this work. It is not uncommon for the credit to equal 50% or more.

     6. Allowing aesthetics to take priority over function
     If the club does not operate well after a major capital investment, then the project has failed miserably. Too many times we see clubs fall into the trap of sacrificing needed service areas to balance the budget, while aesthetic elements are retained. Such decisions can have a dramatic long term effect on the ability of management to deliver quality products and services. They can also result in substantial increases in the cost of overall operations in future years.

     7. Selecting an architect that has little or no club experience
     Clubs are unique buildings with special needs. The last thing the club should want is for the architect to be learning on the job. Select a group of qualified architects with substantial club experience, then bid the work knowing that each architect has the ability to provide an aesthetically pleasing and functional product.

     8. Address the needs of all member markets
     Many times a master plan concentrates on a major clubhouse or golf course renovation. The best programs include an evaluation of all services and facilities. When packaging a program, it is best to include a little something for every market. If the clubhouse needs $5 million, it is better to add another million as part of the initial work to address the other markets (youth, swim, fitness, tennis). This gives each member a reason to vote for the program.

     9. Provide for multiple contractor estimates
     Local cost estimating is critical to insure that the project is on target with the finance plan. Select at least three pre-qualified contractors. Make sure the contractors understand the importance of their work in budget development. Avoid using only one contractor for estimating.
     A recent client used a major local contractor for budget estimating. Their estimates were attractive and the project finance plan using these estimates was presented as part of the overall master plan. During design development, the contractor’s numbers changed dramatically, putting the project in peril and setting the leadership up for failure.

     10. Make the planning committee permanent
     The building committee should be a permanent group that will stay in place throughout the project. They report to the board, but have the authority to make all decisions within the budget and original scope of work.

     Getting off to the right start
Using these ten basic rules will position the club for success early. There are many more small issues that need to be considered. However, getting off to the right start will save both time and money. Every dollar saved is one that can improve the overall program.

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Article 18

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Article 19

'Six Ways to Improve
Food & Beverage Service’
Using Progressive Human Resource Practices

Jerry McCoy, MCM, Clubwise, LLC

We are regularly called on to provide consulting for strategic or master planning initiatives. It is interesting to note that many club clients soon request that we broaden our services to include analysis of operations with a concentration in food and beverage. Historically the food and beverage department is an area that has caused considerable concern within the leadership group.

Our approach to an analysis of the food and beverage department must include a review of the following areas:

 Human Resource Issues
 Facility Analysis
 Product Quality
 Service Quality
 F & B Financial Results
 Marketing
 Governance Issues

To complete the review effectively we must have a comprehensive fact-finding process in place that includes a membership survey, employee survey and leadership strategy survey. Each of these items is important to understand the big picture and provides the consultant needed information to make the proper evaluation and recommendations.

At the top of the list is the evaluation of human resource practices within the club. This evaluation is centered on a six point approach to improve the relationship between the management / leadership and the club staff. The employees are the human resources of the club. Human resources are the vehicle by which all progress and effective change can take place.

Adopting a comprehensive approach to HR issues will affect all club employees. This effect will certainly be felt within the F & B department. Therefore, to insure that progress can be made toward improvement of overall club service, and more directly service within the F & B department, a solid foundation must be in place regarding the HR practices throughout the total organization.

Six Point Service Improvement Plan

1. Complete an Employee Survey

If we do not understand how employees think and feel about the club we cannot address their concerns. What we find most often is that compensation is always the lowest rated issue. Just as important to note are the answers to questions that are closely related to the ability of the employee to generate compensation. Normally, orientation, training and pay for performance are important concerns. The following statements receive low ratings on most surveys Low ratings reveal an underlying problem with the basic foundation of the organization:

o I have a chance to learn new skills.
o I am provided training to handle the job properly.
o There are enough qualified people in my area.
o Poor performance is not usually tolerated.
o Better performers are paid better.
o There is a link between performance and reward.

It is also common to find food and beverage employees rating these statements lower than employees of other departments. Many times F & B employees are younger and less career orientated. They relate differently to the club than do employees of other departments. An approach to employee development that more closely addresses their needs will pay dividends. That approach must be goal orientated and have a delineated path toward greater rewards for quality performance.

The survey is the first step in the process. Knowing what the problems are will allow management to focus more closely on solutions to those problems. This focus must include a process that sets employees up for success early. It must give employees the tools to be successful and provide a specific step by step approach to maximize their potential.

2. Provide a Comprehensive Orientation

It all begins when the employee is first hired. New employee orientation must include an overview of the full facility and service provided by the club. New employees must meet all department heads and learn how each department interacts with the others to provide a positive member experience and fulfill the overall mission of the club.

It is critical that new F & B employees complete a comprehensive training program so they can perform to a reasonable level of the existing staff. We want to insure that new employees are not learning on the job and making mistakes to the detriment of member service. Meeting consistent service guidelines requires that an employee understand the basics prior to being placed in a position where their mistakes can ruin a member’s dining experience.
Part of a comprehensive training process will require the new employee to pass a competency test prior to being placed in a position to serve the members. The club must insure that a new employee has a minimum level of ability. Testing at least determines if someone has absorbed the information. It cannot guarantee, however, that the employee will put to work the knowledge they have accumulated.

3. Make Training a Priority

The key aspect of developing a top notch F & B operation is having an effective training process in place. When reviewing the opinions we receive from the F & B employees we can see that there is a real opportunity in this area. Training must be a priority with all management and supervisors. When an employee is promoted to a supervisory role they should be told that first they are being promoted to trainer. A second part of the job is also supervision and oversight to insure training has been effective.

The club should adopt one of many prototype service training programs or develop its own specialized program. The Club Managers Association of America (CMAA) has a good club specific training program called Unlocking the secrets of exceptional service. The program is available through the CMAA resource center.

The CMAA program has three quality aspects that any program should include. First, there is an emphasis on training the trainer. As we mentioned, main emphasis of department heads, middle managers and supervisors should be training. These individuals’ role in organization and oversight will be reduced by the quality of the trained staff working within their departments. Therefore, insuring that the training process is effective and consistent is a priority. A train-the-trainers session with instructor manuals can be completed by Clubwise, the General Manager or Clubhouse Manager if they feel comfortable in undertaking the process.

Second, the program has an extensive eight part process that includes:

 Session I – The Club, Your Members & You
 Session II - What the Club Expects from You
 Session III – Club Food Server Basics
 Session IV – Serving Your Members
 Session V – The Art of Suggest
 Session VI – Focus on Wine Basics and Wine Service
 Session VII – Planning the Member Needs During the Meal
 Session VIII – Professionalism, Complaints and Work Safety

Each session can be modified to add club specific information to tailor the program to the individual club. At the end of each session is a test to insure that the participants have grasped the important elements. Third, the program comes with a video to facilitate the process.

Each employee receives a training manual for notes. They can keep the manual with any other handouts from the club as a permanent reference. They will have the experience of being able to dissect the job into segments for easy memory.

Obviously this is a service training program. There also needs to be general training for all F & B employees regarding how they can best work together to achieve the maximum experience for the member. The Chef needs to develop training sessions for the individuals within his department that center, not only on preparing quality products, but also their role in the total dining experience.

4. Concentrate on Pay for Performance

Part of any orientation should include how the employee can progress in the organization. Each person wants to know what is expected of them. They also want to know that if they do a good job they will be recognized and rewarded.

The two aspects of good employees are a high level of technical knowledge and the ability to put that knowledge to work for the benefit of the organization. It may seem that these go hand in hand, but that is not necessarily the case. Management should understand the difference and be able to relate club performance standards and expectations to new and existing employees.

Unfortunately we have not found this approach to be a common practice with many of our client clubs. Putting technical knowledge to work to the benefit of the membership has not been a regular priority mindset within the departments. We find this to be especially true in the F & B department. By rearranging orientation priorities and focusing on performance based compensation programs, employees will understand how best to provide the maximum work effort that will achieve for them the maximum compensation for the position they now hold.

Some clubs have instituted a testing and evaluation process within the F & B department. A similar program developed by Clubwise is called ‘The Certified Club Server Program.’ Initial training includes a competency test on basic information before an employee is allowed to serve members. As training advances past the initial process, higher level competency tests have been developed. Employees receive recognition in some form. Clubs have used titles like level I, II and III to designate those individuals that have proved a higher level of understanding of all aspects of service. With each level increase comes an increase in their pay level. The only way a service person gets a pay increase is to prove their technical ability by passing the test. Seniority plays little part in the process.

In association with testing, clubs have adopted a weekly, biweekly or monthly evaluation process. It does not make any difference how technically knowledgeable someone may be if they do not put that knowledge to work to benefit the club. Clubs evaluate the employee on those things that really make the organization run well. Some of these may include:

 Friendliness / Courtesy
 Salesmanship
 Dress / Uniforms
 Completion of Back of the House Duties
 Cooperation / Flexibility
 Timeliness / Rules
 Sanitation / Respect of Property

Each pay period employees can earn commission over and above base pay. The amount of commission earned is based on how well the employee is evaluated based on the above criteria. Obviously wait staff compensation varies substantially between markets. For example consider the following pay scale:

With such a pay scale the employees would only be guaranteed the base rate. They would have to earn the commission regularly. If the work ethic of the employee deteriorated for some reason, the system of evaluation would recognize this and the employee would make less commission. Understanding that all employees want to make the maximum, they strive to put into practice all they know to the benefit of the member customer. Such systems have shown a remarked improvement in member service.

The system does something very important. It puts pressure on the supervisors to effectively monitor each person’s performance and deal with issues in a timely manner. If an employee does not make full commission, there is a sheet in their pay check telling them why and what they need to do. This is an incredible tool to insure continued two-way communication between the employee and supervisor.

5. Consider Adopting Disney On Stage Standards

One of the objectives of the Walt Disney Company was to be sure that the employees knew what type of business they were in (The Entertainment Business) and what was expected of them while on property. Since the corporate concept was to consider employees entertainers, they developed the ON STAGE concept. If an employee is
on stage they are in front, or in view of the customer as an entertainer would be. If they are off stage, they are out of sight of the customer. When at work and traveling to and from work as they enter and leave the property, they will fall into one of 4 classifications. They will be either:

 Off Stage – Off the Clock
 Off Stage – On the Clock
 On Stage – On the Clock
 On Stage – Off the Clock

Based on each class they are given rules of acceptable behavior. This is a great tool for employees to understand what is expected of them in any given situation.
Using the club environment as an example, you can see that an employee is On Stage – Off the Clock when entering the parking lot and moving into the building. While on stage they represent the club and should be careful of their behavior even if they are not on the clock.

Clubs should consider adopting a similar set of standards. By breaking the job down into such segments for all employees, it is our belief that the organization would provide a more professional image and embarrassing circumstances would be kept to a minimum.

6. Form an Employee Committee

The club benefits most when employees are involved with improving the organization. This can best be done by having an employee committee that is part of the process. The HR director should chair the employee committee and report back at the regularly scheduled meeting of the senior staff.

Once a committee is constituted then they should be tasked to make recommendations for, but not limited to:

 Employee communications / newsletter
 Activities / employee events
 Benefit recommendations / awards / incentives
 Orientation
 Employee rules

An active employee committee should help develop a set of principles to work by for all employees. This concept can be developed into an orientation piece for all employees. For example, one club developed a motto of ‘Whatever It Takes’ and adopted the following principles:

1. Communicate clearly up and down
2. Be honest and trustworthy
3. Have a commitment to excellence
4. Be flexible, adaptable and cooperative
5. Be dependable
6. Understand the sense of urgency
7. Work effectively under pressure
8. Be creative and use good judgment
9. Don’t take confrontations personally
10. Have a positive attitude

Specific employees were asked to write a statement explaining why certain principles were important in their jobs. A brochure was printed and distributed to all new employees and used as the centerpiece of the orientation process. It is better for fellow employees to tell new employees what is expected of them than to have the manager do so. It has a much greater impact on the importance of each principle.

By adopting this six step approach to improving HR practices, we believe the club will develop a solid foundation for improved service. We have instituted such changes in clubs with very positive results. Each manager should review their present practices against these six steps. We believe this is a solid approach to long term progress.

Jerry McCoy, MCM, is CEO of Clubwise, LLC, a consulting company specializing in strategic planning, master planning, operating and governance issues. He can be contacted on the web at www.primarystrategies.com.

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Article 20

A View from the Top or

     What the New President Should See

As the newly elected president of your club you enter the office with a certain set of expectations.  Sometimes those expectations do not meet the realities you face.  What should your expectations be?  If your club has a history of progress based on quality decisions by past boards then you should see the following:

     1.  Competent Directors

The number one role of the President is to insure that sound thinkers are nominated to serve on the Board. Past presidents of your club have taken this issue seriously. They have insured nominees can set aside their own personal agendas to support programs that are in the best interest of the club as a whole. Potential nominees for Board service are provided the current policy and procedures manual for the Board.  Potential candidates agree to support these policies and procedures regarding how the Board functions prior to accepting the nomination.

     2.  A Talented and Energetic GM/COO

Your club knows that for the club to function well and make real progress it must operate under the GM/COO concept. The Board is  confident in their management professional and gives him, or her, the freedom to operate the club. One stated function of the Board is to evaluate the GM/COO’s performance against agreed upon goals and provide guidance and oversight during the year.  Board members never interfere in club operations or attempt to micromanage.

     3.  A Vibrant Committee System

At your club advisory committees play an important role. They provide a vehicle for member input into what the club should be and the products and services it should offer. The key is that committees are advisory.  They do not make policy, commit the club financially or make operating decisions. 

     4.  A System to Measure Satisfaction

Board members believe that in the club business perception is reality. Club products and services meet member expectations and provide value. The only way a Board can insure they are moving in the right direction is to measure progress. Your Club surveys the membership regularly. Once benchmarks were set from the initial survey the club resurveyed again to determine if member ratings have improved. The most important role a Board at your club is to measure customer satisfaction. 

     5.  Quality Products and Services

Your club provides products and services in a fashion that meets member expectations. This does not mean that the club provides food and beverage services better than the 21 Club in New York or maintains the golf course equal to Augusta National. It means that based on available resources the club provides high value and excellent member satisfaction. This is accomplished through the talents of the management and staff and performance is continually monitored via member feedback.

     6.  A Trained & Dedicated Staff

Leaders understand that the club business is a service business. All progress is made through people. Only with a trained and dedicated staff can the club meet member expectations regarding produces and services. Therefore the club funds training and education for club staff at all levels. It also provides a competitive compensation and benefit program to attract the best and brightest performers.

     7.  Financial Integrity

The club has a history of making the difficult decisions to fund the operations at a level where progress will result. Club leaders understand that they are not in the golf, tennis, fitness or food and beverage business. They are in the dues business. Leaders understand that dues increases can be painful to the membership. They also understand that this type of pain is short lived compared to the day to day pain of continuing to regularly receive products and services that do not meet expectations or are provided in less than adequate facilities.

     8.  Well Maintained Facilities

The club has a history of maintaining their facilities in first class condition.  This includes the investment in a maintenance staff for day to day concerns.  It also includes adequate funding of capital improvements necessary to offset depreciation.  Periodically the club has made the hard choices regarding major renovation and has not been reluctant to use debt when necessary or assess the members if required.

     9.  A Progressive Strategic Plan

A strategic plan was completed some years ago and it is revisited regularly from year to year. Leaders understand that a strategic plan is a living document that changes when needed to react to internal and external forces. The strategic plan has resulted in a facility master plan that is also regularly updated to insure the club maintains its competitive advantage. The leaders have been willing to make the difficult decisions that have maintained all assets in a quality fashion.

     10.  A Full and Vibrant Membership

Because all of the above nine items are being accomplished the club has had no trouble maintaining maximum membership levels.  There is a waiting list and some applicants have made the decision to move their membership from another local club to your club. Initiation fee levels have increased and capital improvement dollars from initiation fees are at an all time high. 

If, as the new President, you have observed all of this, you then realize that your club has positioned itself at the top of the club industry. Your job is then caretaker of something very special. Your agenda for the upcoming year is already established.  You will support policies and programs presently in place and continue the secrete charge of your predecessors and concentrate on finding good new people to serve on the Board. 

If you review the organization and this is not what you find then your goals and objectives for the upcoming year have just been written for you.   Meet with your GM/COO and discuss how the Board and management can together create positive change.  Your reward will be future presidents looking at the club, seeing all of the above and realizing that you helped make it happen. 

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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 their term in office is to insure that there is a good nominating committee in place with a conscientious chairman.  The committee should be established early in the year (normally in the first quarter) so that they can do a thorough job of selecting the right people for nomination to the Board the following year.

3.  The Board should provide suggestions of potential candidates to the Nominating Committee for consideration.  The best resource for future directors are individuals that perform well in the committee system. 

 4. The Board should set a date at the beginning of the year for strategic plan evaluation and goal setting.

5.  There should be one to two Board educational sessions annually.  The annual budget needs to include funding for Board education.

6.  The Board meeting agenda should be well managed and the regular meetings should

not take more than two hours.  At each meeting the Board should set aside at least 15 minutes for strategic evaluation of existing goals and objectives.

7.  There should be a year end session for the Board to complete a self evaluation of their effectiveness.

In most clubs the responsibility to insure that all of these best practices in governance take place is squarely on the shoulders of the GM/COO.  Normally the club president has a variety of duties that can be time consuming.  The Vice President is the natural person to head a Board Resource Committee to work with the GM/COO to insure all these things take place.  Ideally the VP will move up the chairs and benefit for the work that was done during their time as vice president.

The club should adopt an organizational chart that has three basic areas of responsibility for the Vice President/Resource Chairman.  Consider the following sample chart:

Recently one club went one step further.  During a rewrite and update of the bylaws, they inserted the language below.  

The Vice president will also act as the Board Resource Chairman.  He or she will coordinate the following governance functions:

(i)  Work with the President to insure a nominating Chairman is appointed in the first quarter of the year.

(ii)  Monitor the list of potential candidates for the Board for recommendation to the Nominating Committee.

(iii) Set a date in the first quarter for a retreat or extended special meeting of the Board for the purpose of setting strategic goals and priorities.

(iv) Evaluate options and schedule of Board education sessions to become more knowledgeable in important club issues.

(v)  Provide oversight regarding Board meeting agendas to insure effective meetings that do not waste time.

(vi) Insure that the newly elected Board members have a comprehensive orientation prior to their first Board meeting

The leadership of this club did have a great degree of flexibility in this area as the Board had the authority to modify the bylaws without a vote of the members.  It is not necessary to modify the bylaws to insure the continued existence of a Board Resource Committee.  However, by changing the bylaws the current Board has assured that the club will continue to have future Boards well positioned to make quality decisions.

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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 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 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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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 26

WINNING STRATEGIES                         

        Providing A Unified Front

Solving the Most Difficult Governance Problem

One Board member made a very astute statement at a recent strategic planning session.  He noted “I imagine you don’t get called in very much by clubs when everything is working perfectly.”  How right he was.  There are of course many great club organizations run by visionary GM/COOs that seek outside expertise as part of the normal course of running their club.  They consider this as preventative maintenance.  Like giving your car an oil change.  They do it as a matter of fact to insure the Board and staff stay on top of their game.

Unfortunately this is not most often the case.  Normally we get the call when there are problems or issues of concern.  These clubs find they have a shifting foundation.  When a building has foundation problems it undermines the complete structure.  You get cracks in the walls, possible tilting or joint separation.  When club Boards radically change direction every few years the club suffers from structural damage to the organization. 

This may manifest itself in a variety of ways including membership loss, service quality variances, management and staff turnover or just division within the membership ranks.  In-fighting within powerful membership groups can be most destructive and cause both damage inside the club environment and damage to the club image in outside community.

It is interesting to note that over half of my client contacts are random calls from club Board members.  They are normally frustrated with the present governance situation and are looking for help.  I ask myself “Where is the manager?”  Why isn’t he or she calling?  Who is driving the bus?  The answer to this question is that most of the time he or she has been straight-jacketed.  They find they are caught between to sets of constituencies where taking sides can be deadly.  They normally are the happiest to get outside assistance.

Once I begin working with a club we find that division has normally been caused by financial issues from competition, an inability to maintain membership levels or the requirement for major capital investment contributions from the membership.  This is where weak leadership and bad board members exacerbate the problem.  The most common issue is a lack of a unified front for all Board decisions.  Yes, differences of opinion will occur within the most stable groups.  The important point is that after all discussion the Board offers a consensus position to the membership. 

Maintaining a Unified Front

More than one club has the policy of taking meticulous minutes identifying the position of individual directors and then including exact vote counts by individual.  This is a horrible practice.  Normally there are times where directors on two sides of an issue debate their positions with passion.  It is healthy for an organization to have an open exchange of ideas.  However, once a vote has been taken, and a direction set by a majority of the Board, then it is the responsibility of each director to help make the decision a positive influence on the club.

Certainly we would expect that there would be differences of opinion and extensive discussion on controversial issues.  The Board minutes should reflex general discussion topics but never specific quotes from individual Board members.  Preliminary votes should be taken once the Board has come down on one side of the issue, say a 6 to 3 vote, then the minutes would reflect a passage of the policy or directive without a specific vote count.  As I tell all Board members – you are going two win some and lose some.  However, when you leave the Boardroom it is unanimous.

It is important to watch out for the Homeowners Association mentality that is creeping into some clubs.  This arises when members take over the club from that developer after many years of perceiving that they had been taken advantage of and put upon. There was usually not enough communication about what the developer was doing.  During this time they have been running the Homeowners Association and seemingly fighting continuously with the developer and believing they have been left in the dark on critical decisions affecting them.  Some members believe the process should be more open and that all members should be allowed to attend Board meetings.

Such a system will only cause controversy within the club.  There is no way a Board can provide a unified front if members know every word that was said and just how each member voted.  This is not to say that a Board member cannot request that their vote in opposition to an issues be placed in the minutes.  However, it should not be common practic

Maintaining Confidentiality

The worst Board member is the one that goes out and undermines his fellow Board members within the membership.  Let’s call our bad Board member Sam.  An example may be that Sam meets another member named Joe.  Joe asks how in the world the Board could pass that silly policy.  Bad Sam says “I agree with you totally.  I was dead against that and tried to talk them in to doing just the opposite.”  This type of Board member is a destructive force that causes confrontation and division. 

What happens after such a conversation.  Joe talks to all his friends and says Sam told me that the Board made a wrong decision.  He said that it was he and Sally and Carl that opposed the program and that Jim was promoting it and was able to convince the others.  So now there is this whole constituency that doesn’t like Jim.  This all happened because Sam did not provide a united front within the membership and support his fellow Board members.  He did not abdicate his personal interests that those of the Board.

What is the right answer?  What if Sam had been a really good Board member?  The conversation may have gone like this, “Joe I understand your point of view completely.  However, the Board thoroughly discussed the issue from all sides.  The Board believes this policy is in the best interest of the club.  As a Board member it is my job to do what I can to make it successful.”  The good Board member abdicates his point of view to the majority after thorough discussion and vote. 

How common is this scenario.  It is way to common.  I once had a Board member tell mew that while driving home from the Board meeting he got a call on his cell phone from a member wanting to discuss something that just happened at he meeting.  This guy had already gotten a call from another Board member and he was following up.  Talk about a rumor mill.  This is a terrible situation and very destructive to any organization.

Therefore, along with maintaining a unified front it is also appropriate to respect the confidentiality of Board conversations.  What happens in the Board should stay in the Board.  It is inappropriate to piecemeal out bits of information out of context.  Providing a unified front must include a degree of reasonable confidentiality.

Available Resources

It is not always necessary to hire a consultant to solve this kind of problem.  There are many good resources the GM and Club President can use as organizational tools for the Board.  One such resource is The Director’s Guide for Understanding Club Governance, a publication of CMAA’s Premier Club Services available on line.  This handbook can provide excellent examples for club Boards.  It details a variety of best practices including confidentially and the unified front concept. 

Remember it is best to fix that shifting foundation now so the club can make real progress to the difficult issues facing our industry today. 

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 email CMAAMCM@msn.com

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Article 27

[ WINNING STRATEGIES ]

STRATEGIC PLANNING

Why Operating Expertise is Important

“We are confronted with insurmountable opportunities”  -- Pogo

    Our little cartoon friend has somewhat of a defeatist attitude.  Certainly there are a lot of opportunities in strategic planning.  By using the right tactics, clubs can take advantage of those opportunities.

    There should be great interest in insuring that a strategic plan is an independent document with member driven initiatives.  Too many times clubs enter into the process with a preconceived agenda that the purpose of the plan is to complete a capital improvement program.  It is most important that any plan be member driven if the club expects the members to support the final plan.  There may be many options for future capital investment.  However, we must show that any capital improvement programs were given birth through member input in the strategic planning process.  We don’t complete strategic plans to justify capital programs.  We complete a strategic plan to determine where capital initiatives need to be accomplished.

    With this goal in mind it becomes paramount that any plan be based on sound operational criteria. Understanding the intricacies of the club business is going to be a critical part of developing a successful plan.  Club volunteer leaders need to be thoroughly educated in club industry trends and how best to accomplish operational priorities based on member expectations.  This places the major responsibility for education on the shoulders of the GM/COO.  Many times they can have difficulty.  Sometimes it is hard to get buy-in to the GM’s vision of operational needs.  This is when the right strategic planning consultant can pay big dividends.

    Strategic planning in clubs is different than corporate planning.  In corporate planning the strategic facilitator is sitting around the table with experts in the specific business.  It would be like having 12 GM/COOs around the table.  They have the full authority to make the decisions about their business and do not have to answer to any other group.  The final plan has to be an effective solution if the business is to grow.  However, there is no one better to analyze the issues than a group of experts in that business.  In this case the facilitator just needs to be an expert in the process to keep the group on track.

    Clubs are different.  The strategic planning group has only one GM/COO and a group of unpaid volunteer leaders.  Although these leaders may have been successful in their own given careers they are not operating experts in the club business.  Also, the plan must be validated by the membership who must support potential initiatives that they will be required to fund in the future.  Therefore, it is important that the strategic planner know the club business from an operational perspective to help lead the group in a manner that can generate effective operating solutions and build membership consensus.

    The strategic plan should be a living document that is the source of planning on an ongoing basis from year to year.  The planner, working with the GM/COO from an operating perspective, can insure that the process provides that continuity.  The following is a summary of the five key strategic initiatives that need to be addressed in the planning process.  A thorough evaluation of each initiative requires a clear operating perspective. 

Five Key Strategic Initiatives     

1.  GOVERNANCE

    Continuity of leadership is important if the club is going to make progress.  In private clubs the Board and committees change.  There is only one stable element in the club business.  That is the GM/COO.  To this end the club must have a clear and effective system to harness the energies of volunteer leaders.  Volunteer participation is an important part of successful clubs.  However, there must be a delineation of authority and responsibilities so the volunteers are effective and not disruptive to success.  This is why a solid governance structure is so important. 

    If you look at the great clubs in the country they all have sound continuity from year to year in their leadership.  Establishing sound governance practices is important if strategic plan is to become the driving force it should be in the future.  The strategic planner must be a club governance expert.

2. PRODUCTS AND SERVICES   

    Any strategic plan must include an evaluation of products and services.  It is important to strike a positive balance between affordability, quality and value which have been the main focus of any successful club.  The more the planner can help establish key goals and benchmarks, the more comprehensive the plan will be.

    Within this evaluation should be a general human resources and service program review.  The organization should have a commanding service mission and strategy for delivering on expectations.  Department heads need continuity in direction so performance standards can be monitored for compliance.  Such a program would include strategies for orientation and training initiatives that will enhance the overall club service.  Your strategic planning facilitator should be able to bring a lot to the table in these areas and help facilitate the process with cutting edge ideas and implementation options.

    The club is a unique service business.  The member is a combined customer / investor and needs the organization to find the right balance that maximizes services within the best use of club resources.  Action items must be well thought out with a logical approach for the future.  A planner with extensive club experience can help navigate the politics involved in the process.

3. MEMBERSHIP INITIATIVES

    Strategic planning must deal with membership initiatives with a focus on attracting and retaining good members in the long term.  Many clubs are blessed in this area while others continue to struggle to attract and retain members.  As competition and financial circumstances change within club markets, it will be important to make sure membership categories and costs relative to these areas hit a positive balance.  The strategic consultant needs to have a clear understanding of the industry to help the committee dissect the options and develop the best action items for the respective club.

4. FINANCE Initiatives

    Experience in dealing with the financial structure of clubs will help the planner in working with the club on financial initiatives and action items regarding capital investment strategies.  There is no substitute for actually operating a club and working with budgets, developing the chart of accounts, initiating technology upgrades and managing capital reserves.  This is when an experienced planner can help develop reasonable expectations for financial performance.

5.  CAPITAL INVESTMENT STRATEGIES

    Whoever completes the strategic plan will be well positioned to provide assistance in the development of future capital investment strategies.  The strategic plan will have investment initiatives that will be key elements to the club’s future.  When the plan is presented to the membership, they will have questions in these areas.  A planner with master plan experience can help the committee navigate the politics to undertaking a master planning process.

Other Issues

6.  Operating Experience

    Certainly your consultant with operating experience can bring more to the table in the strategic areas of governance, products and services, membership issues, financial issues and capital investment strategies than will other facilitators.  They can also offer major revenue producing or cost cutting programs during the process.  One club recently implemented two  ideas offered during the planning process generating over $100,000 in initiation fees, $125,000 in ongoing dues revenues and a $40,000 savings to the food and beverage bottom line.  This is the value of operating experience during strategic planning.

 7.  Member Communications

    Operating experience will also pay big benefits in dealing with member focus groups.  Normally there are a lot of technical questions to the facilitator.  Someone with extensive operating experience can answer those questions effectively and have a positive affect on the participants.

    Communication concepts and marketing of the plan can help in building consensus within the membership that the club is moving in a positive direction.  Understanding members and dealing effectively with them can bring a positive approach to marketing and communication that is unavailable from other companies.

8.  Unique Fact-finding Tools

    Unique fact-finding tools used during the process can insure the committee has all the necessary information to make quality decisions.  An employee survey and leadership strategy survey can identify key issues that need attention and help develop consensus within the leadership on strategic directions.  Although the Strategic Planning Committee is charged with developing the plan, it is the Board, through the staff and committee system, that will implement the plan.  To that end it is critical that the Board sees any plan as their plan with unanimous agreement and buy-in.

In Summary

 It appears that clubs can complete strategic planning using a planner with operational expertise or using a planner who is just a facilitator.  If the club should choose the latter, then another Pogo saying may be appropriate.  It goes “We have met the enemy and it is us.”

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 28

     The Master Plan Passed.

Now What!

The Owners Design and

Review Responsibilities

     O.K!  We did everything right.  The members have just passed a comprehensive master plan for expansion of the clubhouse.  The process was well thought out and effectively addressed the club’s expansion and aesthetics concerns.   Even more important is that the plan corrects functionality issues that have plagued us for years.  We did most everything right to insure success including:

     1.  We put together a team of top club consultants and design professionals that could deal effectively with:

§         expansion issues,

§         architectural integrity,

§         member involvement using focus groups,

§         finance plan development,

§         the use of quality marketing materials and

§         generating member consensus 

    2.   We insured that the architect and interior design team selected for the master plan process were also the ones that were best equipped to see the project through. 

    3.  We were prudent financially.  Future architectural and interior design fees for the contract documents were bid in advance.  If the members passed the project we knew we had competitive fees to proceed with contract documents.

     Now we are ready to proceed with design development and then construction.  The question becomes what is the most important responsibility of the club (owner) during contract document development?

The Most Important Responsibility of the Club

     Obviously the owner must convey program elements, provide operational and aesthetic expectations and associated performance criteria.  Certainly architects and interior designers are hired for their professional expertise but don’t discount the role of the club.  James N. Walter, a construction arbitrator for the American Arbitration Association says, “The club better not sit back and assume that the experts will always deliver function.  Don’t ignore your own experiences, no matter what expertise is brought to the table by the club planner.  During the formulation of the documents challenge all participants to be visionary.” 

      How do architects work?  They are trained to use a checklist format. Every part of the job has an associated checklist that they use to insure they have followed correct procedures.  It is interesting that during plan development many of the checklists include an item at different stages called ‘owner review’. 

     Unfortunately this is where many projects breakdown.  Owners fail to perform this critical function.  The main reason is that they are too concerned with the floor plans and some elevations while disregarding the balance of the documents.

What Documents Do You Need to Review?

     There are more to the documents than just floor plans.  The documents include all the engineering drawings, lighting diagrams, mill work schedules, hardware and much more.  Many of these documents have functionality issues included in them.  You would not want the planner to arbitrarily locate the phone jacks, computer jacks or power plug needs according to code.  Each club will have their own needs based on the operation.  Management must be actively involved in these locations.  Every single plan sheet included in the large role needs to be reviewed.

     Normally, architects will not want you to make major changes late in the process.  The more proactive the club can be early, the more positive and cost effective the process will be.   

The Document Review Timetable

     As mentioned above, the review should actually be part of a sequenced schedule of document development.  Each step in the process should be listed with an area for proposed and actual completion dates. 

     Many times the club has established an expected construction start date that they want to maintain.  If the project timetable has been well planned there is normally 2 to 3 weeks at the end of the job for the owner to review the documents for all required changes before the project goes to bid.  If the master planning process has taken longer than expected, or the document development timeline is taken longer then what was scheduled, review time is generally what gets cut.  This is a major mistake.  It is prudent that a complete review be made by management and club representatives and a minimum of 2 weeks be allotted to complete the process.

Two Last Cautions

     First, remember that the construction industry is an industry based on risk.  Walters states, “The industry is full of professionals reading the exact same information and coming to totally different conclusions.  Each reader is attempting to read into the documents their own point of view regarding responsibility and risk.” Architects even have liability alerts in their explanations of AIA contracts.

     Both the architect and contractor want to insulate themselves from as much risk as possible.  It is most important that the club have an expert review the individual contracts for unusual risk issues.

    Second, it is critically important that the budget for the project has been well developed.  It is amazing how you can go around the country and see so many projects that come in substantially over budget.  It is most important to be realistic as to costs.  The owner can pinpoint actual costs for many parts of the project.  The real budget wide card is general contractor construction costs based on materials, labor and subcontractor issues.

     It may hard to believe but today it is common to budget $350 per square foot or more depending on the area of the country for turn key projects.  Right after Katrina hit the gulf coast one project came in at over $350 for just the construction costs.  Get realistic numbers and provide solid contingencies.

For more information on this subject read the MCM Monograph of Jerry McCoy titled “The Value of Contract Documents in Club Construction and Renovation” available through CMAA’s Bookmart 

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 29

Fixing Computer and Club Problems     

Being Prepared for the Worst When Things Crash

Many problems of all sizes are faced daily by managers of private clubs.  There are operating, membership, facilities and governance issues that must be dealt with on a regular basis.  The one thing all problems have in common is that they can cause frustration and sometimes discord within the organization.  Great managers are prepared for what they believe is the inevitable – there will be problems.

Recently the worst possible problem happened.  My computer crashed.  Talk about frustration. There is the isolation of realizing you have a big problem and a lot of work ahead to get things back to normal.  I was partially prepared.  Actually a little better than that and kept the problems to a minimum except for the loss of time. One thing became evident.  The same formula that can overcome the potential computer malfunction can be used to address the multitude of problems faced by the general manager. 

Problems come in all sizes.  Repairing a small software issue is one thing.  Having to reinstall Windows is a whole different issue.  That is a big problem.  This is an issue you must be prepared for, or there may be a giant headache ahead.  Based on this premise we can build a system that addresses both big and small problems.  The following computer jargon can be a a roadmap for a plan to address any issue that comes our way. 

1.      Make sure you have repair and recovery tools. Today many computers come with repair tools and recovery CDs.  They are a ready made plan to address problems.  The goal is to get things back to normal as fast as possible.  Do you have safeguards in place when big problems occur? Managers should have planning sessions with both their staff and club leaders that address the potential for the myriad of problems that may come their way.  Being ready for the What Ifs is the key.

2.      Having access to tech support.  Many times we just can’t do it alone.  We need counsel as to what actions may be appropriate.  Certainly the plan must include the ability to access club leaders.  Department managers can be a key as well.  We should not overlook other managers and professional organizations.  This is why it is critical for every good manager to build a support network around themselves.  It is important when the big problem comes along.

3.      Get your display screen back in order. This is one of the first things you must do after any big change.  The display screen is not only your work environment but also your public image. If your work environment is not organized, you will spend a lot of time and get less accomplished.  When problems strike we must be ready to deal with them and present a positive public image. Disorganization will only exacerbate the problem.

4.      Reinstall supplemental software.  Have back-ups ready so that all your support systems can be working properly.  You need these systems to be able to do the difficult work needed to solve problems.  There is no sense going to war over a problem if you are not fully armed.  Weak department heads or poor relationships with club leaders only multiply your problems.

5.      Copying, repairing, cleaning and sorting files.  This is obviously the time consuming part of the process.  If you have not made a backup then you may have permanently lost valuable information.  It is about taking effective actions to address and correct the problem.  You know how it is suppose to work.  Now it is about making it happen in an organized fashion.  The goal is that things will be as good as, or better than, before the problem.

6.      Getting reconnected to the internet.  Prior to the problem the club may have been well connected to the membership and the general marketplace.  Big problems can cause connectivity issues.  It is important to get back on track with the membership and repair any damage the problem may have caused with the club image in the community.  This can be more difficult than just re-accessing your DSL.

7.      Downloading your protection.  Firewall and anti virus protection is mandatory in today’s world.  Big issues may impact your built-in problem detection systems, affect membership communication tools, or even your firewalls such as insurance.  Many times large problems require re-evaluating your present detection systems and at least restoring them to pre-problem levels.  It may also be time to make upgrades based on their ability to handle the present concerns.  As the GM it is your responsibility to be ready if something like this occurs again.

8.      Stay focused and get past frustration. Computers have become such a big part of our lives.  We keep everything there.  So the thought of having to start over from scratch of even to reorganize everything can be overwhelming.  There is the same kind of frustration when something big “hits the fan so to speak” at your club.  The key is to manage the problem from a position of strength in a calm and steady fashion.  When it appears nothing is going right is when true leadership is exposed.

My computer problem was certainly an ordeal.  However, it paled in comparison the issues you can face.  Look at the hurricane devastation, acts of God and to other problems that have wreaked havoc on many clubs.  You can have terrible political problems with club leaders, be facing trying financial times, be pressed with membership shortfalls to deal with or just have a small sexual discrimination lawsuit on the books.  Whatever, it is time to get prepared to manage problems and not let them manage you. 

Now back to the computer.  You have work to do.     

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 Article 30

The Senior Member Dilemma

{Most clubs have a variety of market segments, each with their own unique expectations regarding their club, and future enhancement of the facilities.  This article will focus on dealing with the special characteristics of those members 70 years of age and older.}

            You may have heard this male phrase ‘Women – You can’t live with them and you can’t live without them.’  I am sure women can say the same thing about men.  When it comes to senior members, other groups within the average private club today may cut the saying short to just “can’t live with them.”  As management you may be sympathetic to this point of view.   

This article will deal with senior members and their impact on change management.  Before we progress further we must make a qualification.  There are clubs where the membership is exclusively senior.  Even in these clubs, all members may not agree on each issue.  However, the purpose of this article is to examine those clubs with diversified memberships and consider how to manage the interaction of senior needs to those of the other market segments ages 35 to 65.  The discussion will resolve around the concept of change, which can often come with a requirement for capital investment in facilities or services     

CHARACTERISTICS OF SENIORS  

            It is well established that the needs and expectations of older members can vary greatly from those who are considered middle aged.  Physiological patterns that are characteristic of seniors may include:

-          Resistance to change

-          A financially conservative nature

-          Greater orientation to short term issues

-          A need for more extensive communication from the leadership

These patterns effect clubs in a variety of ways.  There may be lower incremental sales within the senior class.  Seniors are less likely to spend heavily in the golf shop or be willing to pay for higher ticket items in the dining rooms.  They can be more health conscience, therefore eat less, while at the same time they look for value in menu pricing and portion size.  They like tradition and are less experimental. 

Seniors know that their life span, and present resources, are limited.  They are concerned that their resources will last, that there is enough to take care of themselves, a surviving spouse or their children and grandchildren.

Obviously there are individual exceptions to this definition of senior members.  There are many great, visionary club leaders who are well into their 70’s.  However, it is generally accepted that these characteristics are common place within a majority of those over 70.

 These are certainly different characteristics that would normally be found in younger or middle aged members.  Both of these groups are more risk tolerant.  Younger members are more willing to spend money on luxury items and mortgage the future.  They believe they will be around for a long time and are attuned to long-term problem solving to their personal benefit.  Seniors have a concern for anything that will disrupt their normal enjoyment of the club or add to their present financial burden.  These differences can cause division among groups when it comes to change.

SENIOR DISCOUNTING

Another divisive issue between groups may come from discounting.  Private clubs have historically divide members by age for the purpose of offering incentives or financial discounts.  Since seniors more likely have been members of the club for a longer period of time, they most likely have risen within the social and power structures of the club.  As club leaders they have recognized the potential fixed income nature inherent to senior status.  The argument has also prevailed that long-term members have supported the club for sometime, and therefore, deserve a discount in their waning years.  Therefore, many clubs offer senior members, those individuals who have reached the age of 65-70 years, reduced fee structures.

     There are obvious exceptions to this rule, where the club is very high end and only the very affluent belong or where the average age of the membership approaches the late 60’s.  In these cases offering discounts to seniors would be discounting everyone to no reliable end.

Normally it is not the senior dues discount or the difference in belief systems that becomes an issue with rest of the membership.  Generally they understand these differences and the traditions that have been developed over many years.  In fact younger members look forward to taking advantage of senior opportunities that may be available in their own golden years.

THE REAL PROBLEM

.  The real problem comes when discounted memberships include an equal vote on financial and capital replacement issues surrounding the club.  A major capital project requiring member investment can be dicey when seniors are included in the voting block.  Many a senior constituency has undercut normal club progress with a negative vote for the status quo.

This is where managers need to take a departure from the concern over negative forces seniors bring to the table, and focus on generating understanding of all points of view.  Progressive clubs are change orientated.  They believe that, by being proactive in initiating change, the future of the club will flourish.  A club can veer off on the wrong path with overly aggressive plans.   This is where outreaching to the senior membership class can pay dividends. 

Since change requires risk, it is naturally suspect within the senior membership group.  The resistance to change, combined with a conservative financial nature can have a tempering effect on the club leadership, helping to generate a balance in the planning process. 

            Some clubs do not allow seniors to vote.  Voting or not, these clubs should still be concerned about membership retention.  They do not want a mass exodus of older members due to, what they perceive as, a foolish and expensive program.  The fact is that the more across the board support a project has the more potential for success.  The effort necessary to generate senior member acceptance of a project can generate benefits across all member lines.  Normally, the more something is scrutinized, the greater the potential for a quality final product 

THE KEY IS COMMUNICATION

            The answer to generating acceptance is communication in a variety of forms.  Four major communication efforts that will enhance success are:

1.      Outreaching to assess needs

2.      Communication through inclusion

3.      Positive repetition

4.      Peer marketing

The goal is to generate a positive response to change within the senior group.  The club must prove that a change is needed and provide cost/value alternatives that are acceptable to senior members.  Let’s examine how the communication systems above can be of benefit.

1.      Outreaching to assess needs.

A club must show how change will benefit the senior.  The “what’s in it for them. scenario” must be cultivated.  Identify concerns via survey and through focus group input.  Opinions must be aired and weight given to senior needs as they relate to the future.

2.      Communication through inclusion.

Be sure that seniors are represented in decision-making arena.  Insure that the senior point of view is a part of the decision making process.  Select visionary, respected individuals to participate.  Publicize senior participation to eliminate the perception of a closed forum.

3.      Positive repetition.

On going communication between the leadership and the membership is important.  This is never more so than with seniors.  This group has more time on their hands to talk with each other.  If they have not been given the facts, or know the real story, rumors can invade to discussion and undermine progress.

 Keep all factions up-to-date on the issues.  This is not to say that you need to release every detail or communicate brainstorming concepts before there is clear consensus.  Be clear, concise and timely with reports.  When the truth is not available they will make up their own version of reality.

4.      Peer marketing.

Seniors have had many years to form relationships built on trust.  They can be more amenable to other points of view if those views come from one of their own.  Organize a select group of visionary seniors to promote change within the rank and file.  There can be strength in numbers.  An organized marketing effort of senior on senior can have the greatest impact.

 SOLVING THE DILEMMA

             In most cases behavior is effected by emotion.   Financial security, and the unknowns associated with change, are emotional issues.  The purpose of these four communication tools is to diffuse emotions.  Once the issues are on a logical plain, the easier it will be to prove how change will provide the elements necessary for long tern success. 

            The strength of the senior impact can be felt in their regular use of the club.  Human activity brings warmth to bricks and mortar.  It can also be felt in the ability to temper change.  In many cases adopting program aspects that alleviate senior concerns may actually strengthen the overall program.

            Management needs to be proactive in regarding senior groups.  Help lead volunteer leaders through potential minefields by using a sound logical approach to communication.  Be concerned with efforts to bypass this constituency because they are perceived to be out of touch.  Who knows?  When it comes to seniors, the truth may be, “you can’t live without them.” 

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 Article 31

How to Sabotage Your Club

“Maybe it means to just continue doing what you’re doing”

XYZ Country Club

Anywhere, USA

Dear Board Member:

In the June 15, 2008 edition of the Atlanta Journal and Constitution there was a brief article by Richard Halicks about a declassified United States Sabotage Manual for 1944. Sections of the manual included suggestions for citizens as they interacted with the Germans during the occupation in an attempt to sabotage progress. Further research online tracked the information in the article to a speech by two former CIA officers at an Enterprise 2.0 Conference regarding efforts to share information between agencies after 9 -11.

Online bloggers jumped on the information and one web site stated “Sabotage manual from 1944 advises acting like average 2008 business practices. In a section of the manual on ‘general interference with organization and conferences’ a partial list of the suggestions included the following:

1.      Insist on doing everything through “channels.” Never permit short-cuts to be taken in order to expedite decisions.

2.      When possible, refer all matters to committees, for “further study and considera­tion.” Attempt to make the committees as large as possible — never less than five.

3.      Bring up irrelevant issues as frequently as possible.

4.      Haggle over precise wordings of com­munications, minutes, resolutions.

5.      Refer back to matters decided upon at the last meeting and attempt to re-open the question of the advisability of that decision.

6.      Advocate “caution.” Be “reasonable” and urge your fellow-conferees to be “reason­able” and avoid haste which might result in embarrassments or difficulties later on.

7.      Be worried about the propriety of any decision — raise the question of whether such action as is contemplated lies within the juris­diction of the group or whether it might conflict with the policy of some higher echelon.

            Sounds like some Board Members I have worked with in the past?  One of the responses to the blog read like this – “The really sad part is seeing this type of stuff in action all the time, but not with the objective of causing sabotage, but as a way they believe business should be done. Number 5 is one I’m dealing with right now.” 

            Having worked with several boards as both a general manager and consultant the sabotage list appears to be in vogue as a normal method within many club governance structures. Certainly it is not the purpose of this article to impugn the activities of highly effective club organizations. Many clubs have instituted quality governance practices and have moved past these issues. However, it is still too true that some clubs face these demons because of less than effective governance practices. Let’s examine some examples of each of the seven sabotage suggestions using real examples from anonymous clubs.

1. Do everything through channels.

Having channels in clubs can help to limit out-of-control individuals from doing harm. However, they can sometimes slow down progress to a crawl. There was a president that expected to be apprised of everything that happened in the club. He was always coming to the manager’s office asking why he wasn’t told of the minutest of situations. The manager was so gun shy he couldn’t perform. 

2. Refer all matters to committees for further study.

The committee structure within a club can be a great asset as long as they understand their function as an advisory body. Too many times committees think they make to decisions regarding the direction of their areas of influence.  There was an example of a finance chairman who came from a profit center style business. He decided to disregard the Uniform System of Accounts for Clubs reformat the financial statement into a profit center style approach and allocated almost all fixed overhead and general expenses to departments. The club spent enormous amounts of time analyzing expenses and completing allocations. They totally lost control of its ability to manage and monitor general expense line items and compare usages from year to year.

3. Bring up irrelevant issues as much as possible.

Certainly you have been in a Board meeting where the conversation has gotten off track and into irrelevant areas. There was the case of a Board many years ago that spent 30 minutes of the meeting arguing over what brand of ice cream the club should carry. True story! Obviously this would have been the time for a strong president to get things back in line but it did not happen.

4. Haggle over the wording of communications, etc.

There is a practice in strategic planning called word-smithing. That is taking a draft of a document and polishing it up for publication. This practice is an important part of delivering an effective document. Unfortunately we need to be concerned about those individuals that get caught up in even the smallest details over and over again.  A club wanted to institute a change within a couple of weeks. The committee charged with reviewing the document took four months. The organization missed valuable time. Remember, don’t beat a dead horse. When the horse is dead, get off and start walking.

5. Attempt to reopen previous decision to get a different result.

How often it happens that a club Board will struggle with a difficult issue and eventually come to a decision with a less than unanimous vote. Why is it that, a member on the opposite side of the issue just won’t let it drop. There was a club that was struggling with renovating their facilities. After much discussion and research they developed a plan that was supported by the management, leadership and consulting team. One committee member wanted a smaller version of the plan and kept reopening the seating needs in the dining room over and over again. It was certainly a very disruptive situation.

6. Advocate caution, be reasonable and avoid haste.

Any smart club will act reasonably and with caution. However, being overly cautious can grind the decision making process to a standstill. One club had been studying facility needs for a long time and had a well thought out proposal for further action. A Board member kept introducing the need for more study saying the club wasn’t ready to move forward. Beware of those Board members unwilling to address issues that need action. Don’t let their desire to procrastinate under the posture of caution derail the progress of the organization

7. Raise jurisdictional questions.

The bylaws of a club normally detail the rights of the owner members and a system for governing the club and give elected leaders reasonable powers to interpret policy. Changing the bylaws can be cumbersome because changes have to be voted on by the members.  There was a club that had studied best practices in club governance and wanted to adopt many of the principles that could improve the overall club operations. Unfortunately the President was unwilling to take bylaws changes to the membership for fear of the appearance of a power grab.  

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 Article 32

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.

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Article 33

Membership Enhancement

If your goal is to increase membership and save thousands then read on.

     Reductions, giveaways and the proverbial slash and burn mentality have been used by many clubs in an attempt to draw new members. Markets can be competitive. Some clubs may not have positioned themselves well to compete. They find themselves with less than full membership roles. Drastic action is taken. There is short term success but is the club better off?  What market image does the club want to have after the membership program?  Let’s examine the options.

     Most private clubs were set up to rely on the system of existing members recommending new members. This was great when the club was a homogeneous. Members were sponsoring friends and business associates. It is common today that when someone moves into a community and is interested in joining, the club will find them sponsors. As clubs have become less homogeneous, and there has been more pressure to maintain membership roles, clubs have been more active in taking in individuals that meet minimum social standards as long as they have the financial resources to pay the fees. In many cases members have abdicated their responsibility to sponsor members back to the club. The greatest impediment clubs face is energizing the members to fulfill their responsibility.

     Clubs have tried many types of programs to re-energize the members.

Initiation Fee Discounts

     This can make the club more competitive in the short run and possible more attractive to the potential pool of new members. However, if a club started as a $10,000 club and cuts the fees to $7,500 then in most members mind they are now a $7,500 club. Even if the cut is only short term. When the club wants to go back to $10,000 at the end of the program it is common for membership applications to dry up. Potential members just wait for the next deal.

     The second issue is with those members who have paid greater than $7,500 over the previous years. They are not happy and believe that the club now is less valuable than what they paid.

New Member Incentives

     Incentives other than initiation fee reductions can be effective. Dues deductions or food and beverage credits can be well received by both the members being sponsored and the sponsor. The issue becomes what is the right level of incentive? Many times the incentives are not big enough to make an impact. Clubs also need to be careful about giving incentives to sponsors. Sometimes a new member will wonder if they were recommended just so the sponsor can get the incentive. If incentives are used they should be equal in value for both the new member and the sponsor.

     There are several types of clubs that struggle with membership issues. They include:

The Small Town Club

     This group includes clubs in a small town or small market that has low initiation fees, affordable dues and a status quo mentality. Unfortunately, by maintaining the low fee structures theses club likely have not invested adequately in capital improvements. As business people are moving into the community they may be coming from areas with clubs that have better facilities and many times higher expectations.

     What happens when a new high end public golf course, new gated community or other recreational facility comes to town? The club is no longer competitive, new member applications dwindle and membership roles take a hit. There best counter to membership issues is to improve. Yes – taking on debt or assessing the members will cost more if spread over a smaller pool of members. However, once the pain of the cost has passed the club is better off and healthier in the future.

The Middle Level Club

     This style of club is normally in every market. Again the driving issue facing this type of club is competition. The club industry unfortunately is a keep up with the Jones style industry. Those clubs that are proactive and creative within their markets normally take the lead.

     One of the issues that are common to these clubs is that they may have increased their initiation fees aggressively in the good times. Then things change. Competition comes to the market, the economy turns down or the club is poorly positioned to attract new members. This is the instance where a club may have to bite the bullet and cut initiation fees even understanding the downsides discussed earlier.

The High End Club

     These type clubs have been at the top of the market for years. However, sometimes due to a lack of vision this type of club gets into the same problems as the other clubs. With the high end club there is one major issue. How do we maintain our reputation in the market? Can we run a program that generates new applications, has class yet also encourages members to act and will actually be effective?  The answer is yes.

The Certificate Program 

     The program cuts initiation fees temporarily without really cutting initiation fees. It energizes the members to act in a timely fashion. It feeds member egos and it maintains the reputation of the club in the community. How does the program work?  Follow the steps below:

1. Develop a voucher good for an initiation fee discount of a minimum 20% or higher.
2. Provide a letter and gold sealed certificate each member. Congratulate them for supporting the club and give them the certificate that they can use as a gift to give someone else.
3. Have a time frame attached. Zero to 90 days full value. The certificate would reduce in value 25% for each additional 90 days and would go away after one year.
4. Offer an F&B credit ($250 depending on the club) to the sponsor so they can take the new member out to dinner at the club once they become a member.

The keys to the program are simple. It

1.      You never actually cut the initiation fees. If you started as a $10,000 club you are still a $10,000 club.

2.      It gives members a reason to think about sponsoring a member.

3.      The program has a time aspect that encourages immediate action while the voucher is worth full value.

4.      It feeds the egos of members by providing them an opportunity to give someone something of value.

5.      It is not a giveaway program that undermines operating income.

     Back in the late 70’s / early 80’s one of the biggest names in the club industry found that the economy had caused a drop from 2150 members to 1950 members. They needed 9 members a month to stay even with those leaving. They implemented the program and it was so successful they reissued new certificates the next year and took in a total of 250 members over two years.

    I have shared this program over the years with my clients. One club generated $200,000 of initiation fees in 90 days. Another with very restrictive membership policies got members to, as they said “propose a person of character and congeniality. They increased their membership 7 % immediately after having steady losses over the past years. Pretty good deal I say.

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