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The CMAA annual conference, and in 2007, the Golf Industry Show in Anaheim, CA affords the opportunity to sound out general managers and staff as they roam around the conference exposition, the education sessions and various social events.
You just never know what they might say, what they might be thinking, what the current issues are, or if the current issues have even changed from a year ago. That is, unless you ask! An ear to the ground, an eavesdrop here and there, the education sessions and late afternoon cocktail hours certainly encapsulate a wealth of scuttlebutt, but really, in listening to it all, little's changed. The issues remain:
It also stresses why people belong to private clubs...because their friends are there. Members may join a club for one reason whether it golf, tennis, fitness or business, but their behavior changes after a period of years and they stay for another reason...friendship, something that's been cultivated among members over the years. Equally important though, is providing an environment that allows friendships to develop...connectivity. People have to connect. Many clubs will find that a large percentage of those who leave their club had been members for about a year. They just aren't able to connect with the old traditional group. So it's a matter of getting groups that are used to playing together to open their arms to newer members, particularly new members with young families, the group that's changing the face of private clubs. This attitude prevails from the boards of directors right down through the club. Many times you'll find board members who've played golf with the same foursome for 20 years, but will those board members invite a new member to join the group...not likely. That's a change that's needed and for many members it's a matter of education. And of course, if change is to happen...if education is to happen, it must start with both people and process. If you want to save your clubs, if you want to create that culture with core values, you've got to connect the new members. That's why club tournaments, events and family activities are so important. It can't be just for profit, it has to be for the overall success of the club. The problem is most members in the private club industry don't think about this, all of which emphasizes the importance of club events. It's management's role to create activities, programs and ways for members to connect. Sometimes easier said than done in a field where private clubs are businesses, albeit businesses full of emotional entanglements, good boards, bad boards and interfering boards of directors. What we might consider "bad boards" are those that have a paralyzing effect upon the effective and efficient operation of a private club. We've seen it all too often where the professional staff and management have become the scapegoat for the actions of a "bad board," if not one specific board member. Where does all this start? Much of the time with personal agendas and a need for glorification! And sometimes these boards are the result of "bad" directors...board candidates who are rather clever in masking their true, personal mission when vying for their place on the board. It also can be a group of people aiming to take control, advancing personal agendas and who have little regard the trained professionals on staff. There's been a great evolutionary process in this industry in terms of professionalism and training of department heads and management. The respective organizations, such as CMAA, have provided club management with access to ongoing training and certification, help advance both the professional and the club. Consideration must also be given to the fact private clubs are also businesses and in many cases, board members do not run their clubs the way they run their own businesses. Clubs are operating as businesses and undoubtedly there's been a growth in the professionalism and training of professional staff. It's difficult to say the same for boards. Board members are part time volunteers, who while they may mean well, often have little understanding about the operation of a club, and the parameters of responsibility, behavior and limits of power. Often there's a lack of clarity of roles for both the board and its individual members. The board sees itself, and unconsciously acts, as the management of the club. Not good! This is a major reason why a board orientation each and every year, with an outside facilitator, is so vital...so that the club's general manager and staff can provide vital information about the club's daily operations, strengths, weaknesses, challenges and opportunities. It'll help the board make diligent, insightful policy decisions during a term of office. Boards must fully understand the club's culture, its core values, the club's mission and vision, and long-range strategic plan, and what that long-range plan means - a continuing commitment from the club's board. Board members must be leaders, not interventionists, or second guessers. Equally so, it's vital that the general manager, the club's daily operational leader, fully prepare the board with background reports, research documents and current information required for diligent, incisive decision making. What's the impetus for change for the betterment of a private club and its members? Change begins in many ways sometimes with people, sometimes with process. Let's start with people. The president, for some, is the most critical position on the board. That's a philosophy sounded by Gregg Patterson, general manager of The Beach Club of Santa Monica, CA. "The president sets the tone of discussion, leads the meetings, and establishes the agenda. The president influences who is selected, who heads what committees. The president is the key to success of every board," Patterson states emphatically. Tarun Kapoor, CEO and managing director of Kapoor and Kapoor Hospitality Consultants says, "it's often a progressive president who is a natural leader and coalition builder that leads to a good board. I consider the general manager's position the most critical leader (leading from behind)," opined the consultant from San Marino, CA. So, if the president's and general manager's positions are defining characteristics, what follows? Undoubtedly, a board of directors where there is "transparency, where every action is upfront, clearly understood by all," says Kapoor. In this way, the board believes and acts with fiduciary responsibility on behalf of all the club's members. Club boards should act like responsible corporate boards: set policy and monitor performance and financial operations. Successful boards are the result of a true team effort of skilled management and dedicated members working toward common goals with the board creating a positive atmosphere encouraging management at all levels to be productive and focused. Continuity is also vitally important. Managers cite two ingredients of smooth relationships between boards and staff. First is continuity of leadership, both volunteer and paid. Frequent turnover in either group hinders progress and disrupts the flow of operation. A stable work environment for professionals and a staggered rotation for board members helps assure continuity while minimizing disruptions in policy and performance. What can be done to help private clubs achieve some of these objectives? "One president told me, 'there is no school for club presidents,'" says Dick Kopplin, president of Kopplin Search, Inc. "His point was that board members and club officers learn their duties either through osmosis, watching what other directors have done, or by bringing their executive level experience to this volunteer position." "He was a strong advocate of board members attending workshops and seminars on club management so that they would clearly understand their role and how it relates to the general manager," said Kopplin, whose executive search company is based in Scottsdale, AZ. Additionally, Kopplin feels "goal setting should be a top priority for a new board and the club president should ask each board member to identify the goals for the committee they will chair for the upcoming year." Kopplin contends that a strategic plan for the club is a most effective method for keeping board members focused on their governance. "The blueprint is usually three to five years and reviewed each year by the strategic planning committee before it is presented to the full board of directors," Kopplin asserts. "Another club president told me: 'we have never had a failure at this club because of too much planning.'" Agreed! Publisher's Final Thoughts So while many issues rise and rise again, much of the problem solving traces its roots to a club's board of governors, which enhancing the operation of a private club, establishes policies, gives management the ways and means to enact the policies, encourages transparency in its dealings and finds ways for people to connect with each other. A successful board is comprised of board members truly interested in the club, its members and its success more so than their own personal goals. It's also vitally important that they receive an orientation from pertinent people such as past presidents and the general manager, regarding the club's operation, and issues affecting the club. In fact, clubs can be well served by nominating committees, headed by the past president and general manager who seek out well-qualified nominees. Who should be board members? Preferably people who can bring significant qualifications to the position. Board members should not be selected because they are a well liked club members, but rather for the qualifications they can bring to the table; expertise in areas that can contribute to the club's success...qualifications other than a personal agenda or glorification. They should be good communicators, diligent about knowing the issues and doing their research, someone who has the respect of peers, excited about the prospect of being a board member, and interested in growing the success and value of the club. These are qualifications we need in board members to ultimately give clubs boards aimed at serving the interests of their members in today's private club environment. BR At least that's the way I see it. John G. Fornaro, publisher If you have questions or comments, John can be reached at: johnf@apcd.com |