BoardRoom May/June 2018 by BoardRoom magazine

10 |PUBLISHER’S PERSPECTIVE FALLING PREY TO A LIABILITY ACTION AND WHAT YOU CAN DO ABOUT IT

36 |EXECUTIVE COMMITTEE HOW SHOULD CLUBS BE TAXED?

86 |PGA - GROWING THE GAME JOHN EASTERBROOK JR.’S ON A MISSION

102-106 | INNOVATIVE IDEAS

BOCA WEST COUNTRY CLUB

LAKEWOOD COUNTRY CLUB

PHILADELPHIA COUNTRY CLUB POLO CLUB WOODFIELD COUNTRY CLUB

EDITOR’S NOTE

DAVE WHITE

Dave White is the editor of BoardRoom magazine. If you have comments on this article or suggestions for other topics, please send Dave an email to: dave@boardroommag.com.

The Push Is on for Education

Education sits as a really important issue today for private clubs and their boards of directors.

To wit: In our March/April issue, we focused squarely on education for board members, why it’s important and how clubs can help their board members become more fully engaged as contributing board members. It certainly touched a tender spot for some general managers…as noted in one letter we received …“I’ve read it twice in detail and copied several articles which I passed on to board members and staff…thanks for producing such a worthwhile publication.”

Now, not to blow our own horn, but that reception is exactly how we want general managers and board members to feel when they read BoardRoom. Our focus has always been on the private club’s board of directors…as we seek to “replace emotion with fact.”

So, the educational process continues in our May/June issue, with more interesting stories.

Wine, buying and selling, and catering to club members with wine dinners for example, is a fact of life for private clubs. And it’s reiterated in our cover story with John Komes, the enterprising co-founder and proprietor of Flora Spring Winery & Vineyards in California’s Napa region. This is the story about a company whose wines have become so very popular with private clubs across the country. As mentioned in our cover story, Komes has great experience with the country’s private clubs.

“I’ve been to so many,” Komes related recently, “but I’ll never forget the year I travelled to 40 clubs for tastings and dinners. Each dinner is special, and members always make sharing our wines a pleasure.

Often these excursions are with BoardRoom’s Distinguished Clubs.

“BoardRoom’s Distinguished Clubs program is a great tool for private club managers as it allows them to share ideas about running their organizations, including how to keep members happy,” Komes injected.

“An independent manager has to think of every idea on their own, but with the Distinguished Clubs, managers can learn from each other. It reminds me of our Napa Valley Vintners organization – the bigger the team, the more you can accomplish,” he explained.

And he’s also got some helpful hints for waiters and bartenders selling wines to their private club members. Something every club can use.

n n n

John Fornaro’s Publisher’s Perspective delves into another facet of club life…liabilities, and what liabilities can do to hurt your club.

Many questions have to be considered, but front and foremost are these questions: Are there specific issues than can affect a club’s liability and can a private club prepare for this possibility?

Well the answer to the first part of the questions is yes, and our expert contributors pass along their thoughts and opinions of how and what clubs should do to limit their liability. This is necessary reading for all club boards and executive staff.

As Michael McCarthy, CEO of Addison Reserve Country Club in Delray Beach, FL says, “The evaluation and management of risk for liability is critical to management and board member fiduciary responsibilities. The cost of a claim can be exorbitant in reputation, dollars and member harmony.”

Often this arises because someone or an entity has a duty and for whatever reason fails in that duty.

Jeff Hansen, senior vice president, associate general counsel of Troon Golf, in Fornaro’s perspective, agrees that “clubs are susceptible to potential liability from many sources.”

And the potential liability not only affects members. It can also affect employees.

“For example, if the club employs the employees, there is potential liability associated with wrongful termination, wage and hour issues, and discrimination and harassment issues.”

Liabilities are a fact of life in the private club world. However, board members have three fundamental areas of responsibility, often referred to as Duty of Care and Duty of Loyalty and Duty of Obedience, and it’s at the board’s peril that they’re ignored.

n n n

Finally, we continue with stories on our top presidents for 2017 and in this issue feature Lou DiLorenzo, President, Interlachen Country Club, Edina, MN; Ken Donovan, President, Fiddler’s Elbow Country Club, Bedminster, NJ; Garth Elliott, President, Randpark Club, Gauteng, South Africa, and Doug Green, President, The Polo Club of Boca Raton, Boca Raton, FL. BR

Publisher/CEO

John G. Fornaro

Editor/Co-Publisher

Dave White

Assoc. Editor/VP Creative/Co-Publisher

Heather Arias de Cordoba

APCD Executive Director

Bill Thomas

Editorial & Marketing Director

Dee Kaplan

Accounting

Susan Giem

Contact Information

www.BoardRoomMagazine.com www.apcd.com (949) 376-8889 or (949) 365-6966

Subscriptions and Website

Heather Arias de Cordoba

www.BoardRoomMagazine.com (949) 365-6966

Featured Columnists

Henry DeLozier

John G. Fornaro

Bonnie J. Knutson

Richard Kopplin

Contributing Writers

Joe Abely

Heather Arias

de Cordoba

Chris Boettcher

Chris Borders

Susan Bozeman

Peter Cafaro

Mary Callahan

Caleb Christopher

Ronald F. Cichy

John Cochran

Addison C. Craig

Co-Founder/CEO

John G. Fornaro

President Keith Jarrett

Chief Analyst

Frank Gore

Chief Information Officer

Jeff Briggs

Executive Director

Bill Thomas

Business Development Manager

Christiánne Kinder

Contact Information

www.DistinguishedClubs.com (949) 376-8889

Nancy M. Levenburg Kevin F. Reilly

Gregg Patterson Robert Sereci Robyn

Rita B. Craig

Michael Crandal

Dave Doherty

Todd Dufek

Dave Duval

John Embree

Angela Grande

Steve Graves

Kelley Harris

Rob Harris

Larry Hirsh

Jeremy Hoch

Brian Idle

Rick Ladendorf

Lynne LaFond DeLuca

Kevin P. Lichten

Ross Liggett

Christopher McCagg

Bill McMahon Jr.

Richard McPhail

Peter Nanula

Macdonald Niven

Kyle Ragsdale

Corey Saban

Strategic Partners and Allied Associations

BoardRoom magazine is published by APCD Inc.

1100 S. Coast Hwy. #309 Laguna Beach, California 92691

Brett C. Schwartz

Rosie Slocum

Craig J. Smith

Rick Snellinger J. Lee Stall

Meghan Thibault

Frank Vain

Bryan Webb

Gordon Welch

The BoardRoom magazine (USPS 022516, ISSN 15537684) is a bi-monthly trade publication. Issue 276 Periodical postage paid at Laguna Beach, Calif. and additional mailing offices. POSTMASTER: Send address changes to THE BOARDROOM magazine, P.O. Box 9455, Laguna Beach, Calif. 92652.

Reach The BoardRoom magazine at (949) 376-8889 ext. 1 or fax (949) 376-6687, email heather@boardroommag.com or johnf@apcd.com or visit the website at www.BoardRoomMagazine.com.

FALLING PREY TO A LIABILITY ACTION

BY JOHN G. FORNARO

The cost of a liability action can be harmful to a private club. There’s often the cost of litigation, it can be very disruptive to a club’s operation and the club’s and/or members’ reputations can be harmed. Are there specific issues that can affect a club’s liability, and can a private club prepare for this possibility?

LEGISLATIVE COMMITTEE | 16

ADVICE TO THE BOARD

BY ROBYN STOWELL

GLOBAL

CHANGE IS A GOOD THINGUNTIL IT’S NOT

BY HENRY DELOZIER

Private clubs and their boards undergo change every year. New faces bring diverse backgrounds, experiences and thinking to boards, essential to innovative ideas and sustained growth. Change also can bring disruption to the efficiency and effectiveness of a board’s work. How can boards effectively orient newcomers to ensure continuity and reliability?

The two big issues on my mind right now are the importance of directors maintaining confidences, and the importance of clubs taking appropriate action when confronted with potential employee harassment incidents. As a board member, you are trusted to keep the club’s confidences. Breaching those confidences can, and often does, bring legal liability to the club. PLIGHTS

MEMBERSHIP MUSINGS | 84

AND THE WINNER IS…

BY BONNIE J. KNUTSON

When I’m giving workshops or seminars on membership trends, I often start the session by giving all the attendees a thousand dollars (in Monopoly money, of course) and asking everyone what they would do with it. Would they go out for dinner? Buy a new pair of golf shoes? Get the iPhone X? Donate it to charity? Save it? What is always interesting to everyone is that no two people would use the money in exactly the same way.

NON-MEMBER REVENUE

BY NANCY M. LEVENBURG

Recently Mitchell Stump, CPA announced the publication of his latest book, It’s All About Golf Book 2.0. What interested me is that this book focuses on issues that many U.S. clubs are dealing with at present, especially the issue of revenues derived from non-members… and how it is treated from a tax standpoint.

CLUB FACTS & FIGURES | 90

FUNDING A FITNESS FACILITY AT YOUR CLUB

BY KEVIN F. REILLY AND R. TODD SWISHER

The landscape of the club industry continues to change. The economy, changing demographics, and other factors have taken their toll in recent years. Today’s successful club offers more than just a club…it offers a lifestyle.

IT’S ALL ABOUT PRODUCT, MANAGEMENT AND GOVERNANCE

BY RICHARD KOPPLIN

During a great conversation the other day with a highly regarded general manager/COO of a mid-west club, he made this very interesting observation. “There is no excuse for any private club today not to have a waiting list to get in. If they don’t have a full membership the problem is one of three things – product, management or governance.”

LEADERSHIP MOMENTUM| 80

PHOTOGRAPHS INTO VISIONS - PART II BY

ROBERT SERECI

The art of street photography is in capturing people at that one magic moment, which takes a great deal of observation and practice, and only every so often, outright luck. Managing a club is similar in that it takes a tremendous amount of practice to master this great profession. To the untrained eye, or casual observer one would assume that what we do is easy.

MAGIC | 100

CREATING A CERTIFIED SUPERVISOR PROGRAM – PART II

BY GREGG PATTERSON

Doing supervisor certification right requires knowing the what that’s needed and the how of delivering what’s needed effectively and efficiently. Part II deals with the how of teaching what’s needed. Together Part I and II provide the foundation for an internally generated loving hands at home, personalized and customized supervisor certification program that’ll develop the gifted, strengthen the club and add joy to the management journey.

TRIBAL

Michael Crandal, CNG

A Staff Resignation…Kinda By Macdonald Niven and J. Lee Stall

Accountability New Business Buzzword? By Rita

B. Craig

Boca West Country Club By Meghan Thibault

Kicking Club Traditions Up a Notch By

Lynne LaFond DeLuca

ASSOCIATION OF PRIVATE CLUB DIRECTORS

Know the NO! By

Gordon Welch

ASSOCIATION OF PRIVATE CLUB DIRECTORS

Top Private Club Presidents By Heather Arias de Cordoba GOLF DISPUTE RESOLUTION

Club Terminates Membership Over Wife’s Protests By Rob Harris PGA: EXECUTIVE COMMITTEE

Lakewood Country Club By Meghan

Thibault

Philadelphia Country Club By Meghan

Thibault

105 Polo Club in Boca Raton By

Meghan Thibault

INNOVATIVE IDEAS.

Woodfield Country Club By Meghan Thibault

CLUB SERVICE.

114

Committee’s Function or Dysfunction By

Chris Boettcher

DESIGN FEATURE

ANGELA GRANDE DESIGN.

BOZEMAN

C2 LIMITED DESIGN.

CHAMBERS. .

CLUBDESIGN ASSOCIATES.

HARRIS INTERIORS.

JBD AND JGA.

LICHTEN CRAIG ARCHITECTURE

MAI - MARSH & ASSOCIATES, INC.. . . 72

MCMAHON GROUP, INC..

PEACOCK + LEWIS.

ROGERS MCCAGG ARCHITECTS

FEATURES

JERRY MCCOY

Recognized for BoardRoom’s lifetime achievement award By Chris

Borders

PGA’S JOHN EASTERBROOK JR. . . . . . 86 On a Mission

Growing the Game of Golf By Dave

White

COMMITTEES

TPI for Tennis By John Embree

EXECUTIVE COMMITTEE .

BMI Celebrates 30th Anniversary

EXECUTIVE COMMITTEE. . .

The Elephant in the Club, Part II By Richard McPhail

EXECUTIVE COMMITTEE. .

Who Is the iGEN? Part II By Ronald F. Cichy

EXECUTIVE COMMITTEE.

Grow Experiences to Experience Growth By Frank Vain

EXECUTIVE COMMITTEE. . .

Clubs Boil Like a Frog in Hot Water By Peter Nanula

EXECUTIVE COMMITTEE.

How Should Clubs be Taxed? By Larry Hirsh

MARKETING COMMITTEE. .

The “I Didn’t Know That” Syndrome By Corey Saban

MEMBERSHIP COMMITTEE. . . .

Lead Capture in the 21st Century By Steve Graves

MEMBERSHIP COMMITTEE.

Don’t Blame Your Culture, Change It! By Rosie Slocum

TECHNOLOGY COMMITTEE. . .

60 Art and the Science of the Invitation By Kyle Ragsdale

MEMBERSHIP COMMITTEE. . . . . . . . . 46

Lead Capture in the 21st Century Needs a Well-rounded Strategy By Ross Liggett

61 Role-based Access Control Cybersecurity Series - Part III By Caleb Christopher

Do You Know My Name And Where I’m Going? By Jeremy Hoch

Boards Should Focus on Balance Sheet By Joe Abely and Dave Duval

WELLNESS COMMITTEE.

82 Crossing the Chasm By Rick Ladendorf HR COMMITTEE.

85 Staffing Matters By Mary Callahan

TENNIS COMMITTEE.

91 Choosing Tennis Programming that Works for Your Club By Brett C. Schwartz

92 Bad Guy Gasses - Part II By Dave Doherty GREEN COMMITTEE.

93 You Can Pay Me Now Or You Can Pay Me Later By Dave Downing

HOUSE COMMITTEE.

96 Theft from Locker Rooms at a Country Club? You’ve got to be Kidding! By Todd Dufek

Get Millennials on Your Radar By Addison C. Craig

PUBLISHER’S PERSPECTIVE

JOHN

G. FORNARO

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

Falling Prey to a Liability Action And What You Can Do About It

Today in a very litigious society, liabilities, of all kinds, can be one of the most feared issues facing private club today.

Myriad questions arise when considering a club’s liabilities, but perhaps the all-encompassing questions is: Are there specific issues that can affect a club’s liability, and can a private club prepare for this possibility?

In Michael McCarty’s opinion, “there are a number of incidents that can lead to a liability action against a club, the most common being an accident, injury or illness occurring on the club properly, like a fall or slip, or an automobile or golf cart accident, to name a few.

“Injuries or damage may be minor or they can be catastrophic. Either way they can result in high tensions, operational disruptions and high costs of defence,” added McCarthy, CEO of Addison Reserve Country Club in Delray Beach, FL.

Certainly not every board member is a whiz at finances, or other aspects of board member’s responsibilities. However, every board member should know their role, understand financial terminology, make clear decisions and judge the soundness of their decisions. It’s vitally important board members be able to recognize warning signs that might indicate a change in the overall health of their club. If a board member does not understand something, they must be willing to find out the answer…that means asking questions, because the buck stops with the board.

There certainly are, and according to Michelle Tanzer, an attorney with Gray/Robinson in Boca Raton, FL, here in a nutshell are some of the hottest liability issues for private clubs today:

1. Refund/redemption issues (not paying in accordance with documents)

2. Amendment of documents (not following procedural requirements)

3. Compliance with documents (not following document requirements)

4. Discrimination relating to members, non- members and employees (wrongly assuming the club is “truly private” and that anti-discrimination laws don’t apply)

5. Sexual or other harassment (member on employee, employee on employee, member on member)

6. Disciplinary action (not following due process requirements before imposing sanctions against member).

“The evaluation and management of risk for liability is critical to management and board member fiduciary responsibilities. The cost of a claim can be exorbitant in reputation, dollars and member harmony,” he suggested.

“Generally speaking, liability arises when a person or entity has a duty and they fail to fulfill that duty,” explained attorney Robyn Stowell.

“Because there are many duties in a club environment and operations, there are many opportunities for the club to fall short and for liability to arise. Some examples of duties in a club include providing a safe work environment for employees, for the board members to act as appropriate fiduciaries, and to comply with specific laws (liquor, environmental, food safety, etc.).

“Whenever the club or its agents fail to live up to their obligations, there is exposure to liability. Generally, these

HENRY DELOZIER

Henry DeLozier, a recipient of the BoardRoom magazine Lifetime Achievement award for 2014, is a principal of Global Golf Advisors. You can contact him at hdelozier@globalgolfadvisors.com.

Change Is a Good Thing - Until It’s Not

Private clubs and their boards undergo change every year. New faces bring diverse backgrounds, experiences and thinking to boards, essential to innovative ideas and sustained growth. And change also can bring disruption to the efficiency and effectiveness of a board’s work.

How can club boards effectively orient newcomers to ensure continuity and reliability? Thorough board orientation is the key. Here are five keys for successful board orientation.

1. Conduct a comprehensive orientation meeting with each new board member. Regardless of their backgrounds and career successes, participation on the board of a private club is a new experience for most. Before walking into their first board meeting, new members will want to be prepared to make positive contributions as quickly as possible. Club managers and board presidents should begin their orientation with the following actions:

• Review the current strategic plan, paying careful attention to the club’s core values, goals and objectives. Discuss the plan’s priorities and the current status of major programs and initiatives.

• Discuss how each board member is responsible for effective strategy. Describe the typical board meeting sequence and standard practices. Answer questions and make new members as comfortable as possible with standard practices and protocols.

2. Prepare a thorough library of all key board governance documents. Many clubs are deficient in maintaining a library of current board documents. Include current club bylaws, the current strategic plan, a board policies manual, current budgets (all aspects), auditor’s letter and current Form 990.

Provide new board members with a link to electronic versions of all board materials. Ensure that the link works and demonstrate how each director accesses the materials on a tablet or laptop.

Emphasize the location as well as status and usage of each document. Provide hard copies in a three-ring binder for board members who are more comfortable with hard copies. Provide the board members’ checklist of duties and documents. Explaining the responsibilities of each member is critical to success.

3. Coordinate new board member orientation discussions with past club presidents. Past presidents are a treasure-trove of background and off-the-record informa-

tion that provide context for new board members. Put the wisdom of years of leadership to work.

Arrange for each new board member to meet with past presidents to develop a thorough understanding of club values and critical issues. Coordinate mentorship for new board members with past presidents. Coordinate the mentorship with the existing board president and executive committee. Tap into the club’s tribal wisdom.

Provide past presidents with a mentorship toolkit. Develop guidance for past president mentors for addressing such issues as confidentiality, conflicts of interest and budget responsibility. Add questions that are frequently asked by new board members.

4. Execute intentional one-on-one interviews with each new board member. The manager should meet faceto-face with each new board member. This is a business meeting and not a social call. The objective is to maximize understanding and mutual respect.

Sharing background and work histories helps each person to understand the other. It is wise for managers to use their most effective rapport-building tactics to ensure maximum reach and understanding.

5. Prepare a manager’s summary of current and emerging strategic issues. The manager should communicate key priorities, operational limitations, aspirations and opportunities. Each manager should state their key objectives and develop an open and trustworthy channel of communication.

Prepare and review current issues before the board. Enumerate current goals and objectives. State current progress toward achieving each goal and any limitations or obstacles. Explain such practices as the consent agenda and the budget preparation schedule.

Describe background details regarding the significance and impacts of pending issues. Be candid and respectful in stating the “political” history of the club and do not gloss over political influences within the club and board.

Review the “must-have” tools for each board meeting. Guide each new board member with the tools, documents and preparation that is expected for each meeting.

Board effectiveness is not a matter of luck. A comprehensive orientation process not only will help maximize board effectiveness, but also make board membership a rewarding experience. BR

BOARDROOM BASICS AND BEYOND

RICHARD KOPPLIN

Dick Kopplin is a partner in Kopplin Kuebler & Wallace, an executive recruiting firm providing services to the private club industry. The company has offices in Scottsdale, Arizona and Jupiter, Florida. He can be contacted at (480) 443-9102 or via email: Dick@kkandw.com

It’s all about Product, Management and Governance

During a great conversation the other day with a highly regarded general manager/COO of a mid-west club, he made this very interesting observation.

“There is no excuse for any private club today not to have a waiting list to get in. If they don’t have a full membership the problem is one of three things – product, management or governance.” And I would add perhaps any combination of those three.

Let me expand on his comments. If we look at product first, what he was saying is that if your club is not retaining and attracting new members, it’s probably time for a serious review of what you are offering and what your brand is all about.

Clubs that have been consistent with their annual strategic planning efforts continue to evaluate their “brand” and, more importantly, if their club offerings are what current and potential members really want. The annual strategic process allows the club management and governance team to closely review current trends and what the club is doing to stay relevant.

old excuse, “I have a multi-million-dollar business to run and I can’t be everywhere”, doesn’t work anymore … not that it ever did.

A business leader I admired, and who unfortunately passed away, once told me that he spent 10 percent of his time in his office and 90 percent of his time engaged with his customers and employees. And he ran a billion-dollar enterprise!

When we visit clubs, it is interesting to see that the most successful general manager/COOs are always “somewhere in the club” and not in their office. Engaged visibility is not the only reason for their success but it is certainly a quality they have in common with other top performing managers. His third comment focused on governance. During our recent governance/leadership summits with CMAA around the country, the common refrain we have heard after these all-day presentations to club presidents, board members and general managers is: “We now have a better understanding of everyone’s role in the club governance/management process.” Many club general managers have

The most successful general managers provide a thorough orientation process for their new board members and continue to educate their governance team by attendance at programs like the Governance/Leadership Summits.

Let’s not confuse strategic process with capital facilities lists and budgets. “Strategic process” is taking the club board away from the club to another club or facility for a full day of brain storming and “blue ocean” thinking. Often times using a facilitator will enable the board to engage in some healthy discuss and critical thinking while keeping everyone focused on the agenda.

If your club board and management team are not defining your “brand” in the marketplace then someone else is doing it for you. No wonder some clubs have difficulty attracting new members when they don’t really know who they are or what they are truly offering to new prospects. His second comment focused on management. In our travels around the country we observe the most successful club executives are the ones who are the most visibly engaged with their members and their employee teams. The

invited their entire board to the summit and remark on the positive difference it has made in their governance model.

The most successful general managers provide a thorough orientation process for their new board members and continue to educate their governance team by attendance at programs like the Governance/Leadership Summits. In visiting the hundred plus clubs that we do each year the most common element to the highest performing clubs is they get their “governance and organizational health” right!

Our experience has confirmed what that perspicacious club general manager told us. Successful clubs clearly understand their brand and the resulting product offerings they provide. They are led by an engaged, visible general manager/COO and they clearly understand what a good governance model looks like. BR

LEGISLATIVE COMMITTEE

Advice to the Board

Shhhh! and Do Something!

ROBYN STOWELL

Robyn Nordin Stowell is a partner in the law firm of Sherman & Howard L.L.C. in Scottsdale, Arizona. Robyn may be reached at (480) 624-2736 or by email at rstowell@shermanhoward.com.

If the board meeting is boring, it is no problem. The director is not tempted to share information with his spouse or friend. It does not make a very good story, i.e. we debated whether to replace all the light bulbs to save money down the road, blah, blah, blah.

However, if the content is more exciting, it is much harder to keep a confidence but much more important. When the board is considering a big move, such as a member assessment, firing a key employee, merging with another club, etc., it might be difficult to keep it to yourself.

Laws are evolving to protect employees more and more. Under many laws and policies that may impact a given club (depending on location and private status), the employer can be responsible for behavior by employees and non-employees (i.e., members and their guests), and the victim can be someone other than the target of the harassment (for example, a bystander co-worker who witness repeated harassment).

Thus, all clubs must be diligent to ensure that they have effective employee training and member training, effective membership documents and rules, and that they communicate clearly to their members that we are ladies and gentlemen and we expect all members and their guests to behave that way.

This may require updating bylaws and rules to articulate the club’s expectations and its discipline process more

We have recently seen 20 and 30-year members expelled because one employee was offended by one conversation, and it was a he-said, she-said situation. We will never know if the member was wrong or the employee was too sensitive or read in something that was not there. We do know these members lost their lifelong social network. Were these clubs too hasty?

However, in those cases it is crucial, particularly if the information involves an employee or a member. My rule: if it is too good for me to keep to myself, it is too good for the person I tell to keep it to himself either.

As a board member, you are trusted to keep the club’s confidences. Breaching those confidences can, and often does, bring legal liability to the club. A director can be personally liable when they breach their fiduciary duty.

As an attorney, I know a lot of people’s personal business. I am always in possession of confidential information and am often approached for comment on gossip. I must not.

My husband sometimes doesn’t appreciate learning big news and finding out I had already known it for an extended period of time. My answer is the same and it should be your answer too: “It is not my news to tell.” Protect your club and protect yourself by learning to keep your mouth shut.

But don’t fail to take action. In this current environment with the #metoo movement, every employer needs to act promptly on employee complaints, even if they take the form of rumors, indirect complaints, or confidences from an employee other than the victim. The employer must act.

clearly. It certainly requires the board to be consistent and address all member discipline issues in a prompt and reasonable manner.

Here is the big caveat: You cannot create an environment where employees are now making membership decisions! Employees are not snowflakes who cannot hear a single joke without forcing the club to expel a member.

We have recently seen (but were not involved in) 20 and 30-year members expelled because one employee was offended by one conversation, and it was a he-said, she-said situation. We will never know if the member was wrong or the employee was too sensitive or read in something that was not there. We do know these members lost their lifelong social network. Were these clubs too hasty? Were there more appropriate alternatives?

It will not be an easy task to address these issues. In each case, it requires timely and thoughtful action, considering the allegation, the employee’s and member’s history and believability, the possible remedial measures available and consistency to the greatest extent possible. Most clubs will likely face these issues, so hang on for the ride! BR

Non-member Revenue

Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the President of EdgewaterConsulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan.

Does the club actually profit from it?

Recently Mitchell Stump, CPA announced the publication of his latest book, It’s All About Golf Book 2.0.

What interested me is that this book focuses on issues that many U.S. clubs are dealing with at present, especially the issue of revenues derived from non-members… and how it is treated from a tax standpoint.

As a CPA and tax expert, I felt that Stump was well-poised to provide good insights and advice, particularly for clubs that are eyeing non-member revenues as the panacea for budgetary woes that have resulted from declining numbers of members, and as a result, declining member revenues.

Among the comments, Stump stated that “Club boards often believe increasing non-member services, especially F&B [food and beverage], is the salvation of their struggling private club.” But is this really the case?

While (obviously) the club can generate some amount of positive revenue flow from non-members’ F&B purchases, what costs are incurred by the club in doing so and opening its doors to non-members? Does the club actually profit from it?

This is especially important when we consider that the IRS regards income derived from non-members differently than that derived from members. In fact, even revenues that a private club obtains through reciprocal agreements is treated differently.

Taking this one step further, many clubs frequently host non-member events (e.g., wedding receptions or Chamber of Commerce meetings) in

the hopes of interesting non-members in becoming members. But how successful is this practice?

What are the expenses associated with hosting the event? What are the expenses in recruiting a non-member to become a member… promotional mailings, events and so on? Has this been analyzed, and if so, how lucrative is it actually? One oft-repeated marketing adage is that it costs 10 times as much to recruit a new customer (i.e., member) as it does to retain one that you already have.

And while clubs are enamored with touting the arrival of newly acquired members – and “introducing” them (of which they are likely to be very proud) via newsletters and other communications media, how does the number of new members compare to the number of departing members?

Do the newly acquired members – and their revenues – actually increase club coffers? Profitability? How much does it actually cost the club financially to obtain one new member? Has this been analyzed? And if so, does the board report this information to members as proudly as it does its listings of those newly recruited members? Among many clubs, they don’t.

What’s the answer?

Stump raises the question, “If it is a club that has a golf course, isn’t your best customer one new full equity golf member? Pays the highest joining fee? Pays the highest amount of annual dues? Uses some of the club’s most profitable services?”

Is your golf course your club’s greatest asset? And if so, don’t Stump’s ideas give us many timely – and thought-provoking – issues to consider? BR

For readers who are interested, Mitchell Stump’s book, It’s All About Golf Book 2.0., is available through the Club Tax Newsletter at http://www.clubtaxnetwork.com/ClubBooks/index.cfm?ID=275

A Conversation

with John Komes

FLORA SPRINGS VINTNER EXTRAORDINAIRE

As you meander up that country road in Napa Valley amid thousands of vines, if you’re lucky, one of the first person you’ll meet is John Komes… the co-founder and proprietor of Flora Spring Winery & Vineyards.

Then again, you might not because John’s a doer with a ‘can do’ attitude that has led him to Flora Springs and much more.

The premium Napa Valley winery is nestled in the hills just south of the town of St. Helena – a resurrection of an old ghost winery dating back to the 1800s. The modern winery is now a place of bustling activity, producing high quality wines year after year.

Flora Springs is truly a family affair and even the name has a family tradition. “Flora” derives from Flora Komes, who bought a vineyard and winery with her husband Jerry many years ago. The “Springs” refers to a water source located on the property that never dries up, even in periods of drought. The same can be said of the family’s endless source of enthusiasm and passion for producing exceptional Napa Valley wines for the past four decades.

Flora Springs has nine vineyards located throughout the Napa Valley with more than 600 acres of planted vineyards – one of the top 10 producers in the area.

Each vineyard represents a distinct growing region and microclimate.

“Flora Springs has vineyards in several appellations within Napa Valley, including St. Helena, Rutherford, Oakville and Carneros. It’s that magical combination of climate, geography and soils,” related Komes. “It’s simply different than anywhere else. And again, I come back to tannins. The tannin structure you get in Napa Valley is special. The wines flow across the palate seamlessly, giving them a fresh and youthful characteristic.”

The winery sells more than 80 percent of its grapes to other wineries and produce 50,000 cases with the remaining 20 percent. As far as wine production goes, the family saying is, “We never wanted to be the biggest kid on the block, just the best.” By limiting production, each barrel of wine gets its fair share of attention and results in consistency of style and quality.

Flora Springs produces five core wines – Soliloquy (Sauvignon Blanc), Family Select Chardonnay, Napa Valley Merlot, Napa Valley Cabernet Sauvignon and the popular “Trilogy” (a meritage blend of Bordeaux varietals). All of the grapes that make up these wines are estate-grown and from the various appellations in Napa Valley – Carneros, Oakville, Rutherford, Pope Valley and St. Helena.

“To me, the price/quality ratio is all in the eyes of the beholder,”

Komes explained. “When I was just starting out in wine I’d go to the bargain bin and get my $5 or $6 bottle of wine, and I’d imagine how good a $10 wine would be. Then when I could afford a $10 wine, I wondered about a $20 bottle. You get the picture. I think you need to understand your own palate. There are good wines in nearly every price range.

John Komes

Flora Springs Winery

And what makes Trilogy so special?

“Making Trilogy every year is like re-drawing a masterpiece. Unlike our single vineyard Cabernet Sauvignons, which are a product of Mother Nature, Trilogy is a winemaker’s wine, with the goal of putting together the finest blend each year. I call it creating liquid velvet; it’s the joy of making wine,” Komes enthused.

So where does John’s story start?

“I went out for my high school football team in my freshman year, even though I was 5-foot 2 inches and skinny as hell. I didn’t play much. Sophomore year I’d grown to 5 foot 6 inches and I played on the freshman team again and in my junior year I played junior varsity. I weighed about 170 pounds by then and I did pretty well, “ Komes related recently.

He applied to several colleges, including the University of Colorado, Marquette, and Santa Clara University, and was accepted at the engineering school at University of Colorado – which also had a football program.

“When I told my Dad, he asked, ‘How’re you going to pay for that?’ I said I thought he would pay, and he said, ‘You’re right. I’ll send you to any Catholic college you want.’ So I went to Santa Clara.”

Now Santa Clara didn’t have a football team, so Komes played intermural, but when they started an intercollegiate team in his sophomore year he was the first one to sign up.

“I’d play any position, whatever no one else wanted. By the end of my junior year I averaged 100 yards a game and got an Honorable Mention All-America for small college football. I started to get letters from professional teams – the AFL was starting up at the time. When I told my Dad, he went to talk to my coach. My coach told him, “Jerry, if John had half as much ability as desire, he might make it.

“And that’s my story: a lot of desire and a ‘can-do’ attitude go a long way. My life in wine is much the same!”

So, what’s the secret for Flora Springs, and why have these wines become so popular with BoardRoom’s Distinguished Clubs throughout the country?

“They’re the ultimate result of natural, sustainable growing practices combined with state-of-the-art winemaking techniques and equipment. One thing that differentiates us is our estate vineyards; we live with the vines on our property. As a small winery, we have a close association with our vines. We know each block, sub-block and row. We understand how the sun hits the vines each day, and we know which ones produce the best wines,” Komes explained.

Is there something different about the Flora Springs winemaking style?

“There’s a phrase I use often: ‘taming the tannins,’” added Komes. “To me, that’s what great winemaking is all about: finding that delicate balance between a wine with structure and a wine that overpowers. We’re always looking for that sweet spot, wines that age gracefully but can also be enjoyed in the near term.” And that often leads to a great vintage.

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from cover story |22

“It all comes down to balance and intensity. And intensity is much different than ‘bigness.’ To me, a balance of sugar, acid, pH and tannin produces intensity. A wine can be big and awkward, but it can’t be intense and awkward,” Komes explained.

“The other thing I’ve learned is that you can make good wine out of a so-so vintage, but you can’t make great wine out of one. The grape at harvest is our dictator.”

And what does that mean for a wine aging?

“Again, it comes down to balance. If the components are in balance the wine should age nicely,” Komes offered. “But truthfully, no one knows exactly how long a wine will age. It’s a guess, and I’m not a gambler.

“I think 10 years is plenty long. It’s a myth that older wine is better and most people I know in the wine industry like their wines young. In the old days people made wines that needed more time to develop, to mellow out the tannins. Now we make wines that taste beautifully right away,” Komes said.

All things being equal, does price always equal the quality?

“To me, the price/quality ratio is all in the eyes of the beholder,” Komes explained. “When I was just starting out in wine I’d go to the bargain bin and get my $5 or $6 bottle of wine, and I’d imagine how good a $10 wine would be. Then when I could afford a $10 wine, I wondered about a $20 bottle. You get the picture. I think you need to understand your own palate. There are good wines in nearly every price range.”

And how should waiters and bartenders sell wines to their customers?

“It’s pretty simple,” Komes suggested. “They should know the wines and be able to describe them to their customers. I’ll also give a shout

out to sommeliers. Restaurants can sell so much more wine when they have sommeliers. They know the wines, as they’ve tasted and compared them all. Their recommendations should address the characteristics of the wines and how they’ll pair with the food.”

Komes and Flora Springs have made an impact by growing with BoardRoom’s Distinguished Clubs throughout the country and much of it has come from personal visits to clubs by both Komes and others at Flora Springs, and of course, the receptions for the Distinguished Clubs Summit in 2015, when Komes hosted general managers from Distinguished Clubs. The wine tasting and reception were highlights of that Summit in San Francisco.

Komes has great experience with the country’s private clubs. “I’ve been to so many,” Komes related recently, “but I’ll never forget the year I travelled to 40 clubs for tastings and dinners. Each dinner is special and members always make sharing our wines a pleasure.

“BoardRoom’s Distinguished Clubs program is a great tool for private club managers as it allows them to share

Exclusive Distinguished Club Series Wine

ideas about running their organizations, including how to keep members happy,” Komes injected.

Komes credits John Fornaro, BoardRoom’s publisher and CEO and cofounder of the Distinguished Clubs for his introduction to many private clubs.

“John’s been a great friend and fan for many years and he’s introduced me and Flora Springs to a lot of influential people over the years. Back in the day we hustled to sell our wines. Gaining exposure to club managers and having the opportunity to present our wines gave us a foot in many doors. I think it’s been a win/win scenario,” Komes added.

So what’s the future for Flora Springs, especially in light of fires that recently impacted the Napa region?

“We certainly haven’t had the tourism we’re accustomed to, which is too bad because the fires didn’t impact many wineries or vineyards at all,” Komes explained.

“Most wineries, including Flora Springs, were finished with harvest so that isn’t a big issue. It’s the loss of housing, particularly in Sonoma, that is having the greatest impact on people in the region. It will take a while to rebuild.”

And what’s on the horizon for the wine business?

“People often ask me if I think there are too many wineries in Napa Valley. I don’t think there are too many wineries, I just think there are too many big wineries!” Komes opined.

“In the last couple of decades, the wine industry has experienced what many American industries have faced: conglomeration. A few big guys buying up the little guys.

“But the little guy is the genius of this industry…the one who discovers new techniques in the vineyards and wineries, who finds and develops small plots of land that produce outstanding grapes, who innovates and creates,” Komes exclaimed.

“I like to think we still have that spirit at Flora Springs, and I certainly think it shows in our wines and hospitality. I also think there will always be little guys, people willing to risk everything to pursue their life’s passion. And to them, I raise my glass!” BR

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EXECUTIVE COMMITTEE

RICHARD MCPHAIL

Richard McPhail, CCM, is a founding partner of Club Revenue Solutions, LLC, a private club consulting firm. He can be reached at (239) 223-2741 or DickMcPhail@aol.com. For more information visit the company’s website at clubrevenuesolutions.com.

The Elephant in the Club, Part II

Cast out the Sorehead – The Solution

When a private club’s board of directors fails to enforce club policies, rules and standards of conduct for any one of what might be a ‘sorehead” club member (Part I, BoardRoom magazine, March/April 2018), the board is failing to show appropriate support for the club’s management and the entire staff.

The board is responsible for ensuring that the rules and policies that are meant to safeguard the overall culture and enjoyment of the club by all of its members are enforced. Only board members can discipline fellow members who do not comply.

Most members want their club to be welcoming and to foster a positive club culture and sincere respect for and familiarity with the staff. Ultimately, if problems are not handled fairly, good employees will most likely move on to other clubs or careers with more supported/supportive managers, more positive workplace atmospheres and stronger leadership.

A stable club employee team creates, promotes and fosters club inclusion. These team members build meaningful traditions and provide a consistent level of service that meets the needs of the membership and that members can come to expect.

Familiarity and mutual respect between ALL members and club staff on a consistent basis provides for the ideal “home away from home” club culture. In turn this positive culture fosters a positive reputation for the club (their brand image) and helps to promote new membership enrollments.

I once heard anecdotally of a club that apparently polls the employees every year, allowing them to “suggest” which member is the most disruptive in the club, whether to fellow members, to the staff and/or to the culture of the club. The board then reviews the tally of that secret vote and if the same member(s) name keeps coming up then some sort of progressive action is taken, up to and including termination of that individual membership(s) for especially egregious behavior.

Such a policy would likely get the attention of the consistently troublesome “sorehead” to behave more appropriately. Perhaps clubs should ask the employees for their feedback about the club (from their day-to-day perspective)

A CLUB

A club is a haven of refuge and accord, in a world torn by strife and discord.

A club is a place where kindred spirits gather to have fun and make friends.

A club is a place of courtesy, good breeding and good manners.

A club is a place for camaraderie, merriment, good will, and good cheer.

It humbles the mighty, draws out the timid and casts out the sorehead.

A club is one of the noblest inventions of mankind.

Attributed to Robert H. Dedman, Sr. (1926-2002), the founder of ClubCorp.

as often as they ask the members about their feedback in the more typical member survey?

Club boards consist of unpaid volunteers, usually with limited tenures. In order to quickly assist new board members in embracing the qualities of positive club board governance and to continue fostering uninterrupted momentum there should be a formal board orientation each year to discuss, review and reinforce “best clubs” governance and operating principals.

An open discussion and presentation of club industry “best practices” and issues can provide a basis for successful and successive club board leadership and also provide a time for self-reflection for returning board members.

The general manager and senior staff should always be directly involved in this process and included in the annual board orientations as they are able to help the board to assure there is cohesiveness and continuity in policies and procedures in all functions of the club and its departments.

The management team members are adept at meeting evolving club challenges and carrying out club goals and plans throughout successive years as board members turn over. They have the club industry specific professional educational background along with years of experience in the day-to-day teamwork of providing, creating and “selling” club.

Encourage, support and commend their management and leadership teamwork for your club and remember to include well thought-out incentive programs. By attracting, respecting and retaining a good team, and by assuring them job security in a supportive environment with continued tenure for your club employees, boards can help their management team create the true private club experience that we all know most private clubs desire on behalf of their members. BR

Who Is the iGEN? Part II

Dr. Ronald F. Cichy, O.M., professor, The School of Hospitality Business, Michigan State University

Private club leaders are challenged to appeal to Millennials and families as strategies to attract and retain younger members. The leaders know about Millennials. So, what about their younger sisters and brothers?

These younger siblings have been referred to as GEN Z or iGEN, following GEN X (Millennials), or iGEN for the idevices (e.g., iPhones, iPads, iWatches) that they employ and enjoy.

These iGEN (first born around 1995) members are graduating from college this year. It is impossible to describe hard and fast characteristics of iGEN, since so much of their experiences are personal and individual. But we have discovered five Cs about iGEN: curiosity, communication, connection, college and career in the brief time we have known them.

In Part I, we reviewed the first three of the five Cs and now pick up the discussion with ‘college.’

This generation has lived through the great recession (2008) when they were youngsters. They watched their older brothers and sisters – the Millennials – delay adulthood by moving back in with their folks after college. They also witnessed how older siblings were underemployed, even with college degrees. iGENs have also watched Millennials take on massive student loan debt for college.

When asked, an iGEN is likely to tell you that they chose their majors in college based on “being very interested in the subject.” Choices are based, in part, on the vast amount of information that an iGEN has at its finger tips with their idevices. One iGEN said: “I asked myself ‘why am I here?’ and chose my major based on that answer. My life experiences growing up included learning about who I am.”

Career

“I will have an estimated four to six jobs before I’m 27. I have many options,” said one iGEN. When choosing a career, iGEN wants

an organization that fits with their personal values, interests, personalities and strengths. iGEN wants to be appreciated and listened to in the club. They can make a valuable contribution. However, their passion for the organization must be tied to some part of the iGEN’s beliefs, identity, values, social awareness and social consciousness. If there is a conflict with the boss at work, iGEN may share the situation with their friends sooner than face-to-face with their boss. Perhaps if iGEN is paired with a mentor, these mistakes can be avoided. The iGEN can practice with their mentor, how to talk to the boss. One way to enhance TALENT retention is to define a personalized professional development plan in a conversation with the iGEN and the boss.

SMARTER goals for professional development are: Specific, Measurable, Attainable, Reasonably high, Time linked, Evaluated, and Reevaluated.

Some iGENs want to start their own businesses and are using their abilities to be self-starters and self-taught (online). They are gaining knowledge about what it takes to think and act like the owner. They search Vine and YouTube, as well as online marketplaces such as Amazon and TaskRabbit.

Ownership goes beyond businesses created by iGEN to being managers of their own personal and individual brands. They use Instagram, Vine and Twitter to connect via social media. Clubs that want to connect with an iGEN do it when and where iGEN wants to connect.

In terms of life and career, iGEN wants experiences. Said one iGEN: “I want to live life and experience it in its fullest. And then to be able to share the experiences with others.”

They want to live in the present. They want to take in the full experience. They want to be selfinvolved in the now. And they want to be socially conscious.

It’s too early to state clearly the effects that iGEN will have on private clubs and the world. For now, sit back and get to know them.

“… Nothing’s the matter with kids today!” as sung by Paul Lynde in Bye Bye Birdy BR

executive COMMITTEE

Frank Vain

Frank Vain is president of McMahon Group, a consulting and planning firm service to private clubs. He can be reached at fvain@mcmahongroup.com

Grow Experiences to Experience Growth

its axiomatic that club members have a good deal of success in business and a high degree of financial acumen. average dues at country clubs now run more than $10,000 per year.

Add in other fees and usage, and the annual cost of membership can easily push $20,000. That’s a significant discretionary expense in almost any household budget.

Club members didn’t reach their standing by accepting the status quo. They first planned for personal growth by investing in themselves, so they had the skills they needed to get ahead. Then they joined or started a business and set about growing it, creating value for their customers and income for themselves.

They are good capitalists and it’s paid off in a rewarding and successful life.

Considering how hard these individuals worked to get where they are, it is startling that growth is rarely a focus of club boards. All too often, the goal is only on maintaining the club’s current position instead of shooting for new highs.

Most board meetings are designed only to monitor past performance, with a bent toward keeping cost in check, or worse, cutting programs and services to save a buck. Expense monitoring is of course a duty of governors, but the husbanding of resources should be part of the plan to build for the future, not cheapen the present.

The club world would be a lot better off if more club leaders turned their attention to how to grow their club and left expense management to the treasurer, general manager and CFO.

There is a major shift taking place in society that bodes well for clubs, should they be in position to leverage it. The up and coming generation of consumers increasingly value experiences over possessions. This is being driven primarily by Millennials, who are now about one-third of the U.S. population.

Having grown up in a world of plenty, they are known as the “experience generation”, eschewing the acquisition of things for authentic experiences and interactions with real people. This is increasingly the attitude among all generations of affluent consumers, however, as this segment is fortunate to have most of the things they could want.

It’s part of what’s driving the strong growth in spending at bars, restaurants, resorts and luxury travel. It is fuel for membership growth, if you are poised to capture it.

The first part of your growth strategy should be to make club membership more than the pursuit of an activity. Golf, tennis, fitness and the like are things that members can participate in at the club, but they are not the sole reason people join.

The basic human desire to connect with others is resurgent in our increasingly digital world. The club’s setting must appeal to our senses, signaling you’ve arrived at a special place and it must be powered with programs that forge connections.

The new consumers coming into clubs want value, which is derived from an experience that is broad-based and of a special quality. This requires financial resources, so you can build and maintain the proper facilities and drive participation with innovative programming.

Club boards must continually focus on ways to increase their member numbers and participation, so they can generate the capital required to invest in facilities that draw members to the club more frequently and position it to attract the next generation.

Indeed, the ability to raise capital to continually invest in the membership experience will be the primary determinant of success in the club world of the future.

Growth is the result of smart business planning. Club boards and managers must identify what their club aspires to become and then set aside part of their monthly agenda to discuss ways to generate the capital they need to create it.

This involves shifting the focus of the discussion from the expense side to the revenue side of the ledger. It includes continually researching and discussing changes in expectations and desires, among your members and in the external marketplace.

It leads to development of new facilities and programs and increases the relevance of your membership experience. BR

executive COMMITTEE

PeTer nanula

Peter J. Nanula is chairman of Concert Golf Partners, an owner, operator and all-cash buyer of private golf and country clubs. CGP specializes in recapitalizing member-owned clubs carrying too much debt, converting them to non-equity status, and maintaining the clubs as fully private. www.concertgolfpartners.com | (949) 715-0602 | pnanula@concertcapital.com.

Clubs Boil Like a Frog in Hot Water

We have all heard the parable of a frog being slowly boiled alive. The premise is that if a frog is thrown into boiling water, it will jump out, but if the frog is put in tepid water, which is then brought to a boil slowly, it will not perceive the danger and will be cooked to death.

How does this relate to member-owned clubs? Think of a club’s finances like the hot water. If a club faced bankruptcy today, presumably it would act to save itself. But if it slowly becomes insolvent, a succession of boards can pass the problems on, and a club may eventually be lost forever to real estate development.

Let’s start with the typical challenges facing member-owned club boards. Capital needs are relentless: You must keep up with repairs and maintenance of a multi-faceted recreational facility spanning 200 acres and compete with several nearby clubs that are always adding new amenities and upgrading their facilities.

You can see how the ongoing funding needs of a member-owned club can put the club in a slowly declining situation.

The next challenge is membership. A member-owned club balances its breakeven budget each year by setting a spending target and then trying to make sure it adds enough members to offset normal attrition. That breakeven budget assumes some debt payments and regular maintenance and repairs. But, if the clubs in the area all add outdoor dining and redo their greens, the club must also add $1-2 million for additional capital spending. If the club does not add even more members and collect heavy initiation fees, the capital projects are deferred and the club becomes less attractive. Membership levels trend downward slowly.

Imagine that your club is the frog. Why don’t you feel this pot boiling and do something about it?

First, your board rotates one-third of its members in each year’s elections. The finance chair, who has been warning others about the problem, now rolls off the board. The new board members have fresh ideas about food or paddle tennis or service by the pool or about the golf pro or the general manager. They might not know much about the finances or learn much about them in nine months before the next round of elections. And so, the urgent financing needs and membership trends get ignored for another year.

Secondly, boards fear telling members how perilous the club’s financial situation is. This might make some members consider quitting the club to join a “better” club. Real, transparent talk about the club’s finances might get out in the local community and scare potential members from joining. Maybe it’s best not to talk about this too loudly around here.

Finally, board members don’t think it’s their job to sound the alarm and make radical changes to a decades-long set of traditions. Most spent time and energy getting elected to serve and to continue the club’s traditions. A brand new board member rocking the boat might lose friends.

This is how the frog starts to boil. Now, the debt load is hefty, the membership is down from peak levels, clubs are cutting discount deals to bring in some extra dues, the last assessment drove off 20 long-time members and the prospect of reinvesting millions into smart capital projects is now just a pipedream. How will the club afford that?

How is this funded? Bank loans, dues increases and member assessments. But bank loans must be paid back before the next borrowing and even the thought of raising dues by more than inflation causes blowback among the membership. So, clubs pass member assessments – and often lose 20-30 members when they do so.

There is a better way. The frog needs to check its temperature every year, and if the water is close to boiling, he needs to find a way out of the pot. The earlier he explores those options, the more choices he will have. There is $500 million available for investment in member-owned private clubs. Every one of the clubs that has raised outside capital has grown its membership, added amenities and thrived. Don’t be the frog that boils. BR

executive COMMITTEE

larry hirSh

Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www.golfprop.com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia. He blogs on variety of club and appraisal issues at http://blog.golfprop.com

How Should Clubs be Taxed?

recently, an article in The Washington Post highlighted what is an interesting debate in the golf and club industry.

Two clubs in Arlington County, Virginia (with which I am quite familiar) are being assessed based on their highest and best use. This concept is typical in most states and golf and club properties often bear the burden of tax assessments based on values that may represent potential use as a development site which can far exceed the value based on continued use as a golf or club facility.

The Arlington clubs have sought (and received) legislation which is awaiting the signature of Governor Ralph Northam. As with most legislation these days, there is considerable debate as to whether the clubs should receive what some characterize as preferential treatment or continue to be assessed based on their development potential.

Golf and club properties are typically assessed based on their highest and best use. Sometimes that can be an alternative use while in other cases zoning, restrictive covenants, location, operating history or market conditions dictate that continued use as a golf or club facility is the highest and best use.

However, Virginia’s debate has some precedent. New York, for instance has since the 1988 case of “The New Country Club of Garden City vs. The Board of Assessment Review of Nassau County” dictated that golf and club properties be assessed based on their continued present use. The court raised the legal question as to whether it is right for the club to be taxed at a higher potential use and found that there was sufficient proof that development was not “reasonably probable” in the near future.

The court further found that “as a legal matter that valuation of this improved property under a potential use inconsistent with the existing, valuable one is contrary to statutory and other fundamental principles of assessment valuation.” While most other states have not gone so far as to broadly bless valuation based on continued present use, there are several situations where accommodations have been made for golf and club properties.

In Pennsylvania, for instance a golf facility can apply for inclusion in the “Clean and Green” Act 515 program, which

preserves open space in return for a reduction in taxes. Should the property owner at some point decide to develop the property, penalties are assessed relating to retroactive assessments.

The debate over how golf properties should be taxed will likely never be universally resolved and likely be determined on a market specific basis. On one side are those who wish to preserve open space and hope to create incentives for same. There is sometimes incentive to preserve the clubs’ ability to thrive as an element of quality of life in the community.

Others simply seek lower taxes for the businesses involved (the clubs) and some object to what they perceive as the privileged members of country clubs receiving a tax break. One has to balance the advantages of preserving open space, the benefit of having the club be fiscally able to continue operating unburdened by excessive taxes and the issue of fairness.

What’s best for one community may not work for another. It should be stressed that golf facilities provide numerous jobs, and daily-fee facilities would provide a publicly available recreational amenity for the community.

Those who oppose the accommodation realize that should the clubs in the Arlington case receive this benefit the difference in tax revenue would have to be made up by an increase elsewhere.

What’s best for the community?

Is it better for the community if these clubs close someday because of the tax burden?

It does happen.

Golf and club properties are rarely worth as clubs what they might be worth as developments, where such development is permitted and feasible. Golf courses are a very inefficient use of land and lots of golf courses and clubs struggle. Many are closing.

With open space often at a premium and quality of life in the community a consideration the intangible value to the community may suggest that golf properties (and possibly others) be assessed based on their continued present use versus an alternative highest and best use.

insights

MiChael Crandal, CnG

Michael Crandal, CNG stand for: Certified Nice Guy. Self-certified, by the way. But, a nice guy nonetheless. Michael provides meaningful interim GM/COO services and employee development programs. www.linkedin.com/in/michaelcrandal or (760) 464-6103 direct.

Your Club Is on Stage …

Every Day All Day

Just as any great realtor will ‘stage” a fine home in showcasing it for an open house event – the same holds true with private club member experiences.

Contrary to a piece of real estate presented on a specific weekend during limited hours – favorable member experiences must not only be “showcased” – but delivered consistently every day all day … every day all day … every day all day.

In the private world of exemplary clubs, the only score that ultimately matters is member experiences that consistently deliver an all but palatable positive energy vibe throughout the entire club. Consistent exemplary membership experiences are proactively staged to be consistently delivered.

The entire team has to embrace, with conviction, that there is something truly “different” about the experiences your club delivers … and, then consistently prove it.

WhaT MakeS your Club diFFerenT?

You have to be able to fill in the blanks with the very special things that really makes your club different.

You just have to believe with conviction: “Our club is the only club that consistently delivers _____!”

Take the above open-ended statement and ask it as many times as your team is able to fill in the blank with a member experience. Then, take the steps every day in making sure that this is just not rhetoric … but, actually experienced at your club.

The entire team, top to bottom, must be able to fill in the blanks. Otherwise what makes you think you are any different from all the others?

What is your club famous for? Like it or not – every club is “famous” for something! You MUST compellingly answer the question, “What are we famous for?”

The entire team, top to bottom, must be able to take confident pride in their answers.

Keep in mind: “If you don’t know what you are famous for … guess who does? Everybody else!”

on MeMber exPerienCeS

• Club goods are produced and kept ready to go.

• Staff services are delivered on the spot.

• Member experiences are staged ahead of time.

Your team must be dialed-in to the outcome of member experiences before any of them actually happens!

Imagine having to ask members a silly rhetorical question like, “Did you experience everything you were hoping for at your club today?” Departing questions like this are reserved to be asked by bored employees at big box retail stores.

obSerVinG The STyle oF The ouTSide World

1. So called quality and service are defined by those retained on Madison Avenue, exit polls, competition and what is deemed “acceptable” when graded on a curve.

2. Changes to ad campaigns will be made in a New York minute if believed to move the dial in terms of numbers / dollars / percentages, etc...

3. Advertising can help create or re-shape an image, but it is our actual personal experience that confirms the reality behind the image.

exPerienCinG The SubSTanCe inSide The World oF exeMPlary PriVaTe ClubS

1. Quality and service are defined by themembers. There is no grading on the curve.

2. Nothing is going to divert members’ focus from their actual experience in the areas of personal enrichment, cultural growth, good health, making new friends, creating lasting memories, and being proud of their membership every day all day … every day all day … every day all day.

3. Members don’t care about data when they come to the club. They only care about their actual experiences. (Save all the data for the annual meeting.)

Simply put, it is the membership experiences the club staff stages in advance and then consistently delivers that makes a club famous and what differentiates you from whatever else is out there.

Routinely fill in the blanks:

• Our club is the only club that consistently delivers___!

• Our club is famous for ___!

Then create on-going SOPs and action plans that proactively stages every member experience to be: more personal, more engaging, more fun, more delightful and simply unforgettable. BR

culinaRy & cateRing

lynne laFond deluCa

Lynne LaFond DeLuca, executive director of the Association of Club Catering Professionals (ACCP). The Association of Club Catering Professionals National Conference will be held August 19-21, 2018 in Napa Valley, CA. Register at www.TheACCP.com. You can also contact Lynne at Lynne@TheACCP.com

Kicking Club Traditions Up a Notch

our member “tradition” events are one of the most sacred things in our clubs. They create memories for generations for our members’ families. it is the social aspect that our club culture is built upon and is also a constant in times of whirling, fast-moving change.

Our members know that they can always look forward to Easter Brunch, 4th of July Weekend, Opening Parties, Mother’s and Father’s Day, Halloween “Spooktaculars”, etc.

Just because something has been done for years and is a tradition, doesn’t mean that we cannot keep it fresh, lively and relevant to the upcoming generations. So here are a few ideas to kick those traditions up a notch and create even more memorable experiences for generations to come.

Because there are countless traditions at every club, we are going to focus on brunch because it has become one of the trendiest meal periods around (thank you, Millennials) and Brunch at the Club is one of our favorite traditions! But, take this same concept and apply to every member tradition in the club. The ideas (and traditions) are endless… Going ballistic for brunch (sub head)

The pressure is on to create a brunch worthy of sharing on Instagram – both in food, beverages, décor and experiences. So, take a look at every brunch event in your club and if it doesn’t leave you (and ultimately your members) with a feeling of “WOW!”, then add in a few special and unexpected touches.

What’s on the menu?

We all have our staple brunch items, but do you have a Signature Brunch Item? Something that gets people talking?

It might be a waffle bar like no other, your famous blue crab omelet, a gigantic pancake in the shape of your club’s logo, breakfast poutine with a fried egg on top, build yourown avocado toast station, sausage and hash brown balls, hand-passed miniature breakfast items, ice carving beverage luges, breakfast pizza or an insane Bloody Mary or mimosa bar, but it must be something they can only find at their club!

Tired of the traditional mimosa station? Try a mimosa flight – 3 miniature mimosas in their choice of flavors or a craft beer-mosa for a fresh new twist.

all dreSSed uP and ready For PiCTureS

Everyone is usually in their trendiest Sunday Best and ready for their close-ups! Make sure you have the perfect photo opportunity area staged and ready to go for those selfies.

Make sure your club looks special too –themed décor, linens, florals and maybe even a little favor for your members to take home to remind them of their amazing day at the club.

No matter what tradition you are trying to freshen up, remember that one of the best but also most challenging aspects of serving the same audience over and over is consistency without being boring.

Never do the same event exactly the same way twice. Create a new twist every time you do it, even if it is just in where you position the buffet, the linens you use on the tables, individual tables versus family style so everyone meets someone new, or décor and experiential activities. Traditions can be traditional and an unexpected surprise all at the same time! BR

Corey Saban is co-founder of Newstation.com. A former Emmy nominated and Associated Press winning TV journalist Saban’s company serves as a virtual newsroom for all industries looking to use short form video to engage their clientele. To learn more,

Overcoming the “I Didn’t Know That” Syndrome

like you, my phone is buzzing all day long. There’s non-stop texts, social media and news alerts, sports scores and yes, even the occasional call.

We are being bombarded with information. In fact a recent study found that we touch our phones at least 80 times throughout the day. Were so bad that one out of three of us feel anxiety without it, and yes, I’ll admit on numerous occasions I’ve had to go back home because I forget it. After all, who wants to be disconnected?

So knowing that we are all mobile and our attention span is shorter than a goldfish (8 seconds) your favorite news and entertainment sites as well as many of your peers have turned to short form video.

Video tells a story, hence the saying, “A picture is worth a thousand words.” It makes a connection and stimulates multiple senses, which creates a feeling. It’s those feelings that move us.

For example, you can tell me about your seafood buffet in a text flyer but a video showing succulent lobsters, fresh oysters and giant shrimp sure makes me want to sign up.

Facebook says video links get seven times more engagement than text. Clubs also use the videos on their apps, on YouTube and digital displays.

By doing this they overcome the “I didn’t know about that” because they’ve placed their content where the member is most likely to be.

It’s why clubs going through a construction project put together a booklet that highlights the artists renderings, but just like a print flyer, when your member takes it home it gets lost, left behind and leads to the dreaded, ‘I didn’t know about that.”

Your members are on the same digital journey as you.

Believe it or not, a majority of them would rather watch a short video promoting an event than take home a flyer that will inevitably end up in the trash.

To highlight how far we have come, Boomers are just as engaged with everything digital as Millennials, who are all digital natives. Boomers adapted and are definitely engaged.

Pew Research says Boomers spend 27 hours a week on their devices. Seven out of 10 are social (Facebook is their preferred site) and one out of two are video regulars. Additionally, four times as many people would rather watch a video about a product or event than read about it (Animoto).

But not all videos are created equal or are designed to accomplish the same goal.

Most clubs go with the brochure video… highly produced videos with a professional voice over artist, the soft music and fly over shots that highlight the beauty of your property. These can range anywhere from five thousand to $15 thousand dollars with the intent of living on the home page of your website. These give prospects a feeling for the lifestyle at your club.

Then there are professionally produced short form videos. Clubs use these to highlight social and dining events, construction updates, a president’s message, or any and all information they want their members to know about. They average around $500 each, which is why clubs do these regularly. They find it a more effective and professional way to get their message out as opposed to shooting something on their phone. Plus, using video delivers the engagement they want, if shared correctly. So how do they do it?

Knowing the members are mobile, they blast out weekly video updates highlighting the calendar of events. Your members are social, so they share that video on the internal Facebook page. In fact, Facebook says video links get seven times more engagement than text.

Clubs also use the videos on their apps, on YouTube and digital displays. By doing this they overcome the “I didn’t know about that” because they’ve placed their content where the member is most likely to be.

I’m not saying give up everything print, but what I am saying is provide choice. Six out of 10 executives say that if both text and video are available on the same topic, they are more likely to choose video (MWP) and 80 percent of the web will be video by 2019. Still not sure why this is important? Pull out your phone, check your email and try to read one of the flyers your team sends out and see for yourself. BR

Ross Liggett is director of marketing & revenue management for Landscapes Unlimited. He supports property-level sales, marketing and revenue-generation strategies for the firm’s portfolio of more than 40 golf properties.

Lead Capture in the 21st Century Needs a Well-rounded Strategy

remember the 20th century? When private clubs needed only a good golf course and decent customer service to maintain a sustainable membership roster?

We can agree these are more difficult times – times that require clubs to become active lead generators. Most rely on guest play and member referrals to capture prospective member information. These are timetested strategies that should be in place at every private club, but there should be far more to a well-rounded, results-driven strategy.

The sales discipline has undergone a massive reinvention in the 21st century. In the old (20th century) days, sales revolved around buying lists, cold calling and networking.

The advent of inbound marketing – a sales methodology pioneered by MIT alums Brian Halligan and Darmesh Shah – takes a more strategic approach. Via their book and marketing platform Hubspot, Halligan and Shah advocate that in today’s internet-based world, the key to increasing leads is creating great content and sharing it with the world. The leads then follow. But how do private clubs best adopt/adapt this methodology?

There are two essential concepts to consider when trying to drive inbound leads via the internet.

1. Content: You’ve probably heard by now that “Content is King.” This was the rallying cry of early internet marketers and it continues to hold true. If you are not creating engaging content that people want to read, you will not get very far. It’s important to be constantly generating/sharing engaging content via your website, email blasts, blogs and social media channels. This content should highlight what the membership experience at your club is all about. You goal is to get the prospect to feel, on an emotional level, what membership at your club would be like. That feeling compels a user to click.

2. Path to membership: Once a prospect clicks through – from the content you’ve created – they should land on a page of your website related to membership. What happens next is paramount: Somehow you need to capture this prospect’s information. Unfortunately, club memberships are not the type of products that are generally purchased on a whim, so the prospect is reluctant to hand over their information to a sales person looking to sell a $6,000 per year membership.

The key to turning online leads into memberships is this: Stop trying to sell them a membership. Nurse prospects along by giving them a lowpressure opportunity to engage with the club.

There are many ways to do this but offering the prospect a no-charge test drive of the course is a good place to start. Yes, some will abuse this program, but at the same time it will drastically increase the number of

prospects who visit the course and test it out. If you require that prospects meet with your membership director when they play, you’ll weed out many free riders in advance. Many of the remaining prospects will make their way through the sales process and become members.

It might seem crazy to offer anyone who clicks to your website a free round of golf, but it will lead to more memberships. This simple strategy paired with a great product built Netflix (and its current market cap of more than $139 billion). Even after that massive success, Netflix still uses the free trial concept as its bread-and-butter, new member-acquisition strategy.

There are many technologies to support this type of lead generation strategy at your club. In our organization, we use content platforms like Hootsuite and EZLinks Senalysis to manage posting content to multiple platforms from a single dashboard.

We equip our client clubs with responsive websites that display well on all devices. To best capture prospect information we use web-forms integrated with our CRM System. We use email automation to follow-up with prospects.

It is up to you to find the technologies that are best for your facility. Much of what I advocate here truly challenges the status quo for private clubs, and many will worry about turning their course into a public facility by allowing additional “outside” play.

It’s a valid concern, but in my mind it’s a challenge that can/should be overcome. Failing to create a solid lead-generation strategy is a far bigger risk to the long-term success of your business. BR

It’s Why You’re Great, Not What You’re Great At

The more a club tells a prospective member ‘why’ they should be a member, the more they will understand ‘what’ the benefits are, but better yet see themselves becoming a part of your club. The ‘why’ is exciting, compelling and it’s invigorating. It’s how the club is going to better their family’s life.

We’re all aware that consumers are more powerful than ever before. We know that a consumer is going to research online, read about your club and ask fellow friends who are current members well before ever stepping foot onto the property.

While researching the club they will see the good, the bad, and depending upon how you tell your story, the mediocre. So how does that affect the club? And how does that affect how you should market the club?

the pool? Our Social Membership is available for casual dining, formal dining and overall entertainment in a friendly atmosphere.”

When describing the privileges of a club’s memberships, it’s important to make sure to emphasize why they should choose that membership classification.

Another example is a private club that invests significant financial resources into a state-of-the-art practice facility with heated, covered hitting bays and a short game practice facility. The club should not simply tout the fact that this is ‘what’ they have built, but rather communicate ‘why’ they built it.

Identifying and honing the ‘why’ that describes an experience that will allow the family to spend more time together, be happier and more active all while spending time with other families who share the same goals and interests as they do, will result in more prospective members who will want to be a part of your club and current members who will want to remain at your club.

Consumers are attracted to “why.” Consumers don’t buy what you do, they are attracted to the lifestyle which you portray and the quality of the experience. They visualize themselves using a product and service, and they want to believe that product and service is going to positively impact their family’s life. Private clubs need to share with prospective members what makes their club special and why they should find it compelling to join as a member.

• Your family will be happier as members of the club.

• Your family will enjoy a more fulfilled social experience as you meet and spend time with other families who share similar interests.

• Your business will be more prosperous with the additional networking opportunities

Too many private clubs are focused on selling the “what” - what you are getting for your money – golf, dining, pool access, fitness center. The privileges for each category, the amount it’s going to cost you, and on and on. But when clubs stop focusing on “what” and start focusing on “why”, the entire purchasing process will be transformed.

Instead of listing the amenities and privileges of each membership, provide why each classification might pertain to them. For example, “Our Equity Membership is for the golfer who can’t stand to miss a weekend on our 18hole championship course…” Or, “Don’t play golf or tennis? Not interested in

“XYZ Country Club now has the only indoor practice facility in the area, which provides our members an innovative, new and entertaining way to improve their game 12 months a year.” Once members can visualize why they need or desire something, they will be far more likely to purchase.

It is very tempting and easy to sell solely on ‘what’ the club offers for amenities and services. But consumers are proving that it is the experience and the ‘why’ that counts on making a final decision. And, they will pay for the “why story” that you create for them.

Steve Graves is president and founder of Creative Golf Marketing. Creative Golf Marketing has been named “Membership Marketing Firm of the Year” for 16 of the last 18 years by The BoardRoom Magazine.

Rosie Slocum, MCMP is director of membership, BallenIsles Country Club, Palm Beach Gardens, FL. She can be reached at (561) 627-3372 or via email rslocum@ballenisles.com www.ballenisles.org https://www.facebook.com/BallenIsles

Don’t Blame Your Culture, Change It!

Leaders command the culture of their environment over time.

There is a natural attrition that occurs within a club, which defines the necessity to address changes with forward-thinking as new generations are formed while at the same time, keeping existing generations engaged and satisfied.

It is the human behavior, attitude, customs and beliefs, which differentiates groups of people from one another who are at the same place and time. Culture is established through a variety of values, principles, language, material objects, rituals, communications, religion and acquired knowledge.

You may think of recognizable culture as how things are done, a familiar smell, a novelty or custom. They are the things that define you. It’s the instant you have discovered a unique experience that becomes unforgettable . . . That aha moment.

It hinges on accepted positive behaviors, beliefs and philosophies, which are then reinforced with consistency.

“The role of a creative leader is not to have all the ideas; it’s to create a culture where everyone can have ideas and feel that they’re valued.”

– Ken Robinson

Changing culture is the single most difficult leadership challenge a society can face especially for an existing organization where behaviors have to be unlearned. Having management involved with an action plan to follow through and giving them the power to develop change will eliminate barriers that obstruct achieving objectives. The board of directors and executive team should collaborate and strategize together in making a culture shift.

Cultural differences can explain successes or failures. You have to have a clear vision of the future, constant adaptation and a willingness to change methodology. Leadership development that focuses on innovation, associate engagement and member satisfaction are influential in forming a successful changing culture. Not the easiest thing to do if there are conflicting agendas and everyone is not on the same page. A trust must be developed at the hierarchy. With unity success is imminent with the right process and purpose in place.

“Branding is what people say about you when you’re not in the room.”–Jeff Bezos, founder and CEO Amazon.com

Internal branding is also important. If your brand is not in line with your culture, there may be a productive employee base with great morale but produces undesired results. Employees could be focused on productivity and efficiency while missing the mark on customer service and improving brand image.

Employees should be engaged by the leadership with the same expectations as they are expected to engage the membership. They should have a clear understanding of what makes the brand special from a member viewpoint and what their role is in the member experience.

Knowing who the target membership market is and understanding wants and needs is equally important. Without it the brand lacks reliability. How the operations function on the inside will dictate how you look to others on the outside.

What about changing the culture of a community or membership base? It’s the kinship, togetherness and camaraderie we feel with each other that are not exclusive to family members. There are thousands of different things that cause human behavior among groups of people. You can’t just pick one behavior, say you’re going to change it and expect to alter an entire society. It takes a counter-culture of many things forging together at once to create an ongoing positive progression.

Clubs have intermittent occasions to realign culture change. A perfect opportunity is when planning a clubhouse renovation. There are so many variables in a restoration blueprint that could alter the overall behavior with planning how different areas of the club are designed, serviced and function.

Members will slowly adapt to the new philosophy by segueing into the creation of the remodeled space learning its new purpose. They will begin to develop their own unique experiences generated by change and brandbuilding. These practices will become the recognizable way of doing things as members and guests frequent the club.

With a different purpose, members can take pride in their newly found culture. It’s all about coming together and forming relationships to share in the attitude of positive change. BR

“Not only did KOPPLIN KUEBLER & WALLACE provide us with an outstanding slate of candidates to interview and ultimately from which to make our selection, Mr. Kurt Kuebler was an absolute pleasure with whom to work. All facets of the process were performed in a timely fashion with utmost efficiency. The breadth of knowledge regarding this industry that KOPPLIN KUEBLER & WALLACE possesses is most impressive.”

Dr. Timothy K. Kingston, President Happy Hollow Club, Omaha, NE

S PECIALIZINGIN G ENERAL M ANAGER /COO, D IRECTOROF G OLF, G OLF C OURSE S UPERINTENDENT, E XECUTIVE C HEF, R ACQUET S PORTS P ROFESSIONAL , C OMMUNITY A SSOCIATION M ANAGER , A SSISTANT G ENERAL M ANAGER , C LUBHOUSE M ANAGER /F OOD & B EVERAGE D IRECTORAND F ITNESS D IRECTORSEARCHES , ASWELLAS S TRATEGIC P LANNINGAND C ONSULTING S ERVICESFORPRIVATE , RESORTANDDEVELOPER - OWNEDPROPERTIES .

DICK KOPPLIN KURT KUEBLER TOM WALLACE LISA CARROLL

JACK SULLIVAN ARMEN SUNY LEN SIMARD

SAM LINDSLEY

EXECUTIVE COMMITTEE

Know the NO!

GORDON WELCH

Gordon Welch is president of the Association of Private Club Directors. Welch served eight years as senior vice president of CMAA and also general manager/COO of country clubs in the U.S. He can be reached at (918) 914-9050 or gordon@apcd.com

High profile sexual harassment claims continue to dominate the news and many private clubs are now taking renewed interest into their culture. While these stories are dominated with female grievances, one out of six claims of harassment are made by men against both genders.

Anyone that says, “It can be difficult to know what is okay and what is not” is just not truthful. If you think sexual harassment is not a concern in your club, consider the fact that 58 percent of American companies have reported at least one charge of sexual harassment. That, Mr. President will spill over into your club culture.

As countless individuals come forward to share their stories of sexual harassment and assault, they are exposing the intolerable behaviors that have been tolerated for far too long, and – along with them – the institutions and cultures that have allowed such behavior to go unchecked.

BOARDS SHOULD ASK THE FOLLOWING QUESTIONS

Are we doing enough to provide leadership and guidance to the staff about organizational values, policies, and expectations? Through organizational policies and thoughtful oversight of the chief executive, the board has a responsibility for ensuring that the organization treats employees fairly and appropriately, follows all relevant laws, and that issues of harassment or assault are being dealt with swiftly and appropriately.

Are there reporting mechanisms that encourage victims of sexual harassment and assault to come forward, regardless of who the perpetrator is? Is there an anonymous hotline that club employees can contact? What expectation should be set about when and how the board will be notified about allegations and/or investigations?

What general guidelines should be set about the consequences for sexual misconduct by a member? How should those guidelines apply to members or even board members themselves?

What is the cost of sexual harassment if the board does nothing? The board must be informed of any issues of harassment in the club and be aware of the cost of turning a blind eye.

Recent headlines have revealed that both for-profit and the non-profit sector is not immune either to the presence of sexual misconduct or to its mishandling by organizational leaders. Your club is no different!

When it comes to the board’s role in staff oversight, we like to point out that the board has exactly one employee: The chief executive. While true in many ways, this sentiment obscures the fact that the board has a very important role in providing leadership and oversight of one of its most important resources – its people. That is a serious responsibility that calls on boards to think more deeply about how to cultivate an organizational culture that refuses to tolerate harassment or exploitation of any kind.

n n n

Sexual harassment is not an issue you want to have before your board. I personally had a board member harassing an employee and a president who was unsure of what to do.

As a board leader, remember, if a sexual harassment claim comes forward and a board member is involved, protect your chief executive. While it may be your chief executive’s duty to investigate allegations, hire an outside firm if it is regarding a board member. Your chief executive has an employment agreement and that agreement could be negatively affected by oversight of an internal investigation.

Sexual harassment tears relationships apart. Remember this golden rule from my friend the late Joe Perdue: If you can’t tell your parent what you are doing (at any age), it’s probably wrong. BR

A Staff Resignation…Kinda

Kelly, a staff person of several years, came to Chris one day: “Chris, I’ve become really passionate about health care. I really think that I want to get into helping elderly and I have an opportunity to take some classes towards a degree. This program also offers an internship so that I can really understand what it’s all about. But, I’m not sure and I don’t want to leave the club, nor put you in a tough spot. I’d like to take class and perform some internship work for the next six months, while still holding down my full-time role with you. What do you think?”

Chris is a firm believer in supporting good people and supports Kelly’s desire. Together they worked out an adjusted schedule to accommodate a new career internship, as well as study class material, and perform work at the previous high level. Over the course of six months Kelly remained highly engaged and proficient at work and was able to more fully understand the new career opportunity.

During this time, Chris has been keeping an eye out for a replacement, not searching, but watching. An exceptionally qualified candidate appeared; Chris engaged this person in serious talks ending up with an offer of employment. When Kelly was notified that the replacement was found, and the time had come to move to the new career, Kelly was devastated. Now, Chris is the “bad guy.”

We posed this situation to about 200 managers from across the country asking how they would have handled the situation and how they would now handle the consequences. We’ve received some very interesting responses.

Most all were in support of the effort Chris has shown. This show of support was aptly captured by one respondent who wrote, “First off, I salute the manager for supporting the employee’s preparation for a new career. All of us want the very best for our team and if that employee’s deeply embedded life interests direct him away from clubdom, then supporting that journey is the right thing to do.”

In a bit of foreshadowing, a common theme was “No good deed goes unpunished,” one respondent also cautioned, “I have learned over time, as I am sure many have, that being the nice guy tends to come back and haunt you more times than not.”

Unfortunately, like many instances of starting out with great intentions, things go off-kilter in the end. The risk that Chris took was that there might be confusion at the end of term. As one respondent noted, “If the ousted person was popular with his fellow staff colleagues, don’t expect his friends to understand, so the GM could be “the bad guy” to a larger group of em-

ployees for a while (and the transition of the new employee might be a bit more challenging).” This captures the issue that both Chris and the replacement will have a hard time of it.

However, one respondent was clear that, “We have a policy that when an employee gives notice we tend to pay them out their notice and part ways either immediately or within a week after the notice, even if they are great employees. It just keeps things simple and no drama.

In summary:

• The manager must always put the club’s well-being first

• Some form of understanding should have been memorialized at the start

• A shorter time-frame may have been a better alternative, perhaps three months

• The search for a replacement and the finding of that replacement should have been discussed at length during the weekly/daily mentor meetings and should have been no surprise to Kelly

• When the engagement with the potential replacement became serious, Kelly should have been informed and a decision made as to whether Kelly would remain with the club.

As one respondent wrote, great leaders “exercise empathy, support, patience, and mentorship.” This case is one of many that managers face. Sometimes just trying to be a “nice guy” has unintended (and possibly negative) consequences. Thought needs to be given to all decisions, talking with one of your peers might be helpful, even when the decision looks easy. BR

J. Lee Stall, CCM, CCE can be reached at (504) 8991572 or via email: jleestall@noltc.com.

MacDonald Niven, MA, MCM, CCE is with Niven Research and can be reached at (510)-439-8522 or via email: mac@niven.cc.

BoardRoom magazine Recognizes the Private Club Presidents of the Year

By Heather Arias de Cordoba, Associate Editor, BoardRoom magazine

BoardRoom magazine annually recognizes the world’s top private club presidents, captains and chairs as Private Club Presidents of the Year, for their outstanding work, their understanding of the industry, and role and responsibilities of the club’s board of directors. In this continuing series, BoardRoom introduces four of the top 21 presidents for 2017.

Private club board presidents play a huge role in professional operations of their clubs as a volunteer working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions.

This recognition by BoardRoom magazine has attracted board president nominations from clubs and other nominators around the world.

These outstanding presidents exemplify the focus on the leadership responsibilities, the accountability and the management of the board providing a healthy respect for the club’s macro management. They are cognizant of the importance of working, effectively and efficiently, with their volunteer boards and the dedication required from everyone with whom they work.

Key elements of a “good” board include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with the management and the membership, fiscal responsibility, development and establishment of the clubs’ mission, vision and policy direction, especially through establishment of a strategic plan.

A successful board president draws upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources. As well the board president provides new board members and future board presidents with information they need to perform effectively as board members.

Congratulations to these outstanding private club board presidents.

JEFF BENTON, PRESIDENT | RIVER BEND GOLF & COUNTRY CLUB | GREAT FALLS, VA

Serving as a trusted board member, treasurer and committee chair of the River Bend Golf and Country Club in Great Falls, Virginia, Jeff D. Benton, now in his second term as president, has always made it a priority to integrate the club's storied past with its progressive future.

“Jeff is a leader with a vision. But no decision he makes is made hastily. He is an effective communicator and constantly engages with the board, committees, members, spouses, and staff to fully inform his thinking. He trusts in the club's vision and communicates his expectations without feeling the need to

micromanage. He has earned the respect of members and staff alike with his continued service and loyalty to the club,” expressed River Bend's GM/COO, Husam Atari.

Benton views River Bend as a customer-centric business, complete with characteristic business issues and an expectation of success. His approach has changed the views of operations as well as how the club looks at the needs of current and future members. Always a proponent of healthy change, his driving motivation is the member's experience. In reaching this end, he champions selfreflection and constant improvement: at the board level, with operations and with himself.

Other keys to his success has been his leadership through the annual board and committee orientation, whereby the board, committee chairs and management work together to define the club's goals for the coming year, while allowing the GM/COO autonomy to implement "best practices" as he sees fit.

During his tenure, Jeff helped to transform the club’s strategic planning process from a shortrange tool to a long-term planning framework, designed to withstand board turnover. Through this overhauled strategic planning process, in 2017, Jeff worked collaboratively to plan for and gain approval from the membership of a major $7 million renovation project that would add more space for members to gather and enhance member engagement.

Jeff works as a senior managing director at FTI Consulting solving critical business performance issues. He lives in Great Falls, Virginia with his wife, Julian and three daughters, Audrey, Ava and Madison. An avid golfer, Benton has been a member at River Bend Golf & Country Club since July 2009.

“Jeff is an incredible ambassador throughout River Bend. He leads by example and tasks his fellow board members and committee chairs to do the same by getting involved in all the different aspects of the club,” added Atari. "He has been able to translate his vision into a renewed sense of belonging and purpose that is the ‘River Bend' experience, following in the footsteps of those presidents before him."

All good reasons why Jeff Benton is one of BoardRoom’s top presidents for 2017. BR

ROCCO J. DIINA, PRESIDENT | THE BUFFALO CLUB | BUFFALO, NY

“President Rocco J. Diina has shown us what a true and great leader is…through his strength, his tenacity, his energy, his inclusiveness, his wisdom and his insight. He never wavered when the tough decisions needed to be made, yet he just as readily showed respect and kindness to both members and staff alike.”

And with that, Sherry M. Sutton, the club’s secretary summed up the contributions of Rocco J. Diina as one of BoardRoom’s top private club presidents for 2017.

“President Diina truly loves The Buffalo Club,” expressed Daniel Moriyama, the club’s general manager and COO. “President Diina has led many noteworthy organizations in his illustrious career, but his service as president of The Buffalo Club has truly been a labor of love.

“In a year of transition, he brought the employees of the club together and brought the members of the club together under one vision. He was fair, just, and had to make difficult decisions, but always placed the betterment of the club above all else,” Moriyama added.

During the year of transition, president Diina’s tenure included a six-month search for a new general manager, culminating in the appointment of GM Moriyama, while he and Sherry Sutton took on the daily duties of the club management. They focused specifically on one area of the club that has made a notable impact: the employee experience.

“Positive change can only be achieved by involvement and commitment of members/board and staff,” president Diina related. With 150-plus staff members, this fundamental focus created a long-range positive impact on the member experience. Their legacy continues with the culture that is being created revolving around the employee experience.

Tangible accomplishments included renovating the employee café, forming the employee recognition committee and fostering open communication between departments and the membership.

The clubs’ member experience has been successfully elevated through communication, transparency, ongoing training and the fostering of the employee culture. President Diina’s philosophy is exhibited by his favorite saying “la familia.” The membership and the staff have renewed and reunited in their relationships. Members consider many of the employees a part of their families, genuinely caring about their wellbeing. The members note that the staff is engaged and attentive, with increased attention to detail and innovation.

President Diina and the club’s board have made it a priority to establish a strong governance model into the future. During the GM interview process, it was stressed on both sides that the manager would have the authority to manage the operation with board and committee guidance. This model continues today with active and transparent communication between GM Moriyama, the board and committees. Coming from a modest upbringing to such a grand place steeped in great history and stewardship, president Diina relished his position and worked daily to ensure its success.

Rocco J. Diina is the retired police commissioner for the City of Buffalo, an accomplished business and law enforcement executive, security firm founder, and community leader. His experiences and contributions in public safety and innovative security management policies are recognized internationally. He and his wife Anna Marie, also a strong club supporter, are proud that their two children, Rocco N. Diina and Rebecca Diina LaCivita are also active members at The Buffalo Club.

“Rocco brings passion, vision and a commitment to excellence in every task he undertakes. These qualities were apparent as he led The Buffalo Club through its historic 150th year,” explained former director Linda Dobmeier…a mighty fine way to describe one of BoardRoom’s top presidents for 2017. BR

JEFF BENTON, PRESIDENTHUSAM ATARI, GM/COO

ROCCO DIINA, PRESIDENTDANIEL MORIYAMA, GM

LOU DILORENZO, PRESIDENT | INTERLACHEN COUNTRY CLUB | EDINA, MN

LOU DILORENZO, PRESIDENTJOEL LIVINGOOD, GM/COO

An impressive list of accomplishments highlights Lou DiLorenzo’s tenure as president of the Interlachen Country Club in Edina, MN.

Approval of a $9.5 million facilities improvement plan, a successful new membership program, transition to a reserve model for funding capital, review and revision of club policies to fit within the framework of today’s club, improved communication with membership, support of continuing education for the management team and their involvement in industry organizations, and adoption of a new board policy manual, which embraces the GM/COO model are among the reasons why President DiLorenzo is one of BoardRoom’s top presidents for 2017.

“Lou is a collaborative and strategic leader. His thoughtful, transparent and progressive approach to

managing change has generated trust, support and excitement among our diverse membership,” expressed Interlachen Country Club’s general manager/COO Joel Livingood.

“Moreover, the work accomplished during Lou’s time as president has positioned Interlachen for another 108 years of success.”

The new board policy manual clearly defines the roles and responsibilities of the board of governors, committees, department managers and the GM/COO to promote effective and efficient governance and management. The board is strategic in nature and focuses its efforts on achieving the club’s long-term, strategic objectives, while allowing the management team to deliver on the day-to-day.

DiLorenzo’s innovative approach and entrepreneurial spirit have challenged the Interlachen management team to think outside the box, and it’s given the team confidence to try new things and consider how to do even the simplest things better. The club’s facilities improvement plan greatly enhances the member experience. It includes updates to Interlachen’s pub and dining room, a new fast-casual café and turn bar, expanded fitness center, new golf performance center and the addition of paddle tennis.

“Under Lou’s decisive leadership, our club has developed and moved forward with successful membership and facilities improvement plans. Lou has an exceptional ability to clearly communicate the strategic path forward for our club while preserving our club’s rich golf history and tradition,” surmised Peg Hicks, club board secretary. “As a result, Interlachen is well positioned for the future. We are grateful for Lou’s passion and leadership.”

In addition to supporting golf at Interlachen, DiLorenzo serves as a member of the boards of directors for the Minnesota Golf Association as well as the National Club Association. Lou and his wife, Lindsay have been members at Interlachen for 12 years. They have three children, Mia, Alessa, and Leo all of whom are actively involved in a number of club activities. Before his service on the board of governors, he served on the golf, membership and tournament committees.

Professionally, he serves as the chief operating officer of Bright Health, a new technology-enabled health insurance startup based in Minneapolis. Before joining Bright Health in 2016, he worked in a variety of positions at Cargill. He is a graduate of the Harvard Business School and Colgate University. BR

KEN

DONOVAN,

PRESIDENT | FIDDLER’S ELBOW COUNTRY CLUB | BEDMINSTER, NJ

“I am all about family,” related Ken Donovan, president of Fiddler’s Elbow Country Club. “Families enjoy their memberships and the families of our 350 employees make it special. We make decisions thinking about the impact on both groups.”

“My father co-founded our wonderful club in 1965 and is still active in the operations, although fewer days each week. His vision and philosophies are still being carried forward by my sister Maryellen, brother Keith, and me. We treat all of our staff from senior management on down the line as family members and believe they are the key to our success.”

In 2017, Donovan introduced a breakthrough initiative that could affect positive change in the entire club

world, and perhaps the hospitality industry as a whole. “It’s called the Fiddler’s Lifestyle Initiative, a plan to improve the lives of all staff members. The plan is multi-faceted and anchored in the philosophy that a happy staff makes the difference between a good experience for members and a great one,” explained Tom Hurley, general manager.

“Staff only parties, family days, trips and the like are included. And most importantly, while long hours will likely always be a part of the hospitality business, at our club we now pay careful attention to how we schedule so we do not burn out our employees. Days off are offered back-to-back and working both Saturdays and Sundays are discouraged, while vacations and benefits (e.g. matching 401k) are generous.

“As I write, our staff members are receiving free flu shots, another small but important component of our staff Lifestyle Initiative,” continued Hurley.

In addition to the progressiveness of the Lifestyle Initiative, the strategic plan at FECC is also unique in that it contains input from all staff and members, not just owners. The planning process culminates in The Barn Sessions where senior staff gathers at Donovan’s home to flesh out new ideas and strategies. “

Matt and Tommy Donovan, Ken’s sons, have incorporated MIT, our Manager-in-Training program, that offers high potential individuals in any department the chance to rotate throughout the club, contributing and learning details of each department and, maybe, become a club manager someday.

“Ken and the Donovans are accessible, caring and responsive,” expressed FECC member Dr. Nick Molinaro. “He has created a club environment that is the center of each and every member’s social universe.”

Club GM Hurley added, “I believe that future club leaders will one day reflect on Fiddler’s Elbow Country Club, under Ken’s direction, as the defining environment that developed future leaders in our industry while fostering a life balance and ultimately reinventing the service culture.”

Ken Donovan resides in Mendham, New Jersey with his wife of 33 years, Kris. He has been in leadership for Fiddler’s Elbow Country Club for more than 25 years and has served as its president for the past six years. Ken and Kris have three children; Matt and Tommy who both work at the club, while daughter Cate is a senior account executive with Class Pass, a fitness tech company. BR

KEN DONOVAN, PRESIDENTTOM HURLEY, GM

GARTH ELLIOTT, PRESIDENT | RANDPARK CLUB | GAUTENG, SOUTH AFRICA

“President Elliott is an inspiration to many not only as the president of the club, but as a business and family man,” exclaimed Randpark general manager Francois Swart.

“He always seems to be on top of all the challenges surrounding everyday life and he continues to show true leadership qualities, through integrity and confidence, while always inspiring others.”

President Elliott enjoyed receiving the award as one of BoardRoom magazine’s Top Private Club Presidents in 2011, and he was just recently re-elected as Randpark’s president for the 10th year running. However, it hasn’t been an easy road, partly because the passing of the club’s CEO Doug Bain in November 2014. Randpark has always enjoyed the accolades as one of the top performing clubs in Gauteng, South Africa and much of this is because of the leadership and vision of Bain.

During this very difficult time, President Elliott stepped into the leadership role to guide the management team.

Following Francois Swart’s appointment as general manager in 2015, Elliott carried through his role as a mentor and leader, giving selflessly to ensure that Swart understood his roll and continued with the strategic plan of the club.

Elliott’s commitment and hard work together with the support of the committee helped the management team get back on the road to Vision 2020.

“President Elliott takes the time to listen and understand situations before making decisions. He has been a true mentor and gives of his time to enrich those around him. He is committed, passionate and dedicated to all he does,” stated Swart

Elliott motivated the adoption of the CEO concept in 2011, which ensured that appropriate structures were put in place to direct, manage and control Randpark Club on behalf of the members, within a framework of effective accountability and transparency, so that the committee and management is at all times accountable to members and responsive to their rights and wishes. This made it very clear that the committee’s role to set policy for the management to follow and to lend strategic direction to the club, rather than micromanage the club.

Under Swart’s leadership, the club has continued with further upgrades to modernize a number of facilities including events venues, golf shop, tennis courts, locker rooms, club interior and recently the driving range, which now offers the first Mizuno performance fitting center in Africa.

The management team continues to focus on the member experience through innovative ideas, improved services and open communication. The club has also been honored with many service excellence awards in recent years and in 2017, the club hosted the Joburg Open, which was the first tri-sanctioned tournament in Africa.

“Garth has been integral to the continued focus on the club’s strategic plan and I will forever be indebted to him for his contribution to my growth as a manager and as an individual,” added GM Swart.

Elliott is married to Basia Elliott and has been a member at Randpark since 1989. He served 19 of those years on committee, as club captain, vice president and 10 years as president. He has three sons, Grant, DJ and Matthew, loves golf and plays off an 11 handicap. BR

DOUG GREEN, PRESIDENT | THE POLO CLUB OF BOCA RATON | BOCA RATON, FL

The Polo Club of Boca Raton has been in the spotlight the past few years – both locally and nationally – because of the many awards for excellence, recognizing both its general manager and the club.

President Doug Green’s mantra has always been to “get it right”, no matter how difficult, time-consuming, or expensive the process. The result? Today there is a palpable level of enthusiasm and excitement at Polo that continues to grow daily.

Green is passionate, methodical and driven. From a governance standpoint, he sets expectations high and holds management responsible for the outcomes. In his words, “The best boards in the world

are those that do not manage the organization, but rather ensure that the organization is well managed by hiring the best, supporting the best, retaining the best, holding them accountable...and then getting the hell out of their way.”

With annual total revenue of $50 million, the past five years have also seen close to $40 million in capital improvements at the club. One of the most important undertakings during Green’s tenure was the creation of the “Family Resort Complex,” a resort-style pool area complete with seating for hundreds and a casual poolside restaurant and bar, all set against a beautiful tropical backdrop of the golf course.

Upon its opening in November 2011, it immediately set a different tone and feel for the membership as Polo transitioned from a gated community to a residential resort – a true destination for members, their families and friends.

Green has been a champion of, and continues to be a cheerleader for, the “member experience.” By way of example, between Christmas and New Year’s this past December, Polo served over 30,000 meals, had 6,000 visitors at the pool complex, and welcomed over 3,000 members and their families to its renowned Annual Street Fair.

General Manager/COO Brett Morris put it best when he said, “There are presidents, and then there is Doug Green, unique and respected for his enthusiasm, his energy, his ability to strive for perfection, and for getting things done. I have been in the business for 30 years and I have never had or seen a better mentor.”

Only those who have held the position can truly understand the dedication and time that he selflessly devoted to ensuring that The Polo Club of Boca Raton thrives now and well into the future.

Green and his wife of 48 years, Toni, have been members of the Polo Club for 17 years. They have two grown sons, and they, along with their wives and five grandchildren from Buffalo and New York City, always enjoy a visit to Polo, especially in the winter! BR

GARTH ELLIOTT, PRESIDENTFRANCOIS SWART, GM

DOUG GREEN, PRESIDENTBRETT MORRIS, GM/COO

Kyle Ragsdale is chief marketing officer of Billy Casper Golf (BCG) – the largest domestic owneroperator of golf courses, country clubs and resorts – as well as Billy Casper Signature, BCG’s boutique division offering first-class services tailored to the unique golf, sport, leisure and hospitality requirements of private clubs and its members. Kyle can be reached at kragsdale@billycaspergolf.com

The Art and the Science of the Invitation

There’s an old saying that says, “Golf is about with whom we choose to play.”

That statement reflects both the charm and the challenge of our great game. Golf gives us an opportunity to see beautiful places on this planet, to tell and listen to great stories, to challenge ourselves, to share the experience with our children, siblings, parents and friends or to meet new people for the first time and feel like we have known them forever.

And maybe, just maybe, to find a moment of greatness. To reap these wonderful benefits, golf only requires one thing in return – a commitment of time. Unfortunately, for most of us in our time-starved lives, that is the biggest ask of all.

It’s true, we have seen a mega shift in our entertainment consumption patterns and marked competition for our time. However, counter to many of the lazy headlines about the state of the industry, I don’t believe this spells imminent doom for golf.

As club owners, operators and marketers it is our job to build this level of personalization, relevance and therefore interest in our clubs and for our events.

“Big Data” gets all the hype these days and for good reason. Advancements in statistical analysis, computing power and decreases in storage costs have provided marketers more consumer behavioral insights than ever with the promise of delivering personalized marketing at scale, similar to the wine tasting example.

Successful big data efforts begin with a finely tuned data capture strategy. Members will tell us what is working and what is not – we simply have to listen. “Big Listening”, if you will.

So what does data capture, big data and listening have to do with an invitation? In short - everything.

If we are successfully tracking behaviors, we will refine our understanding of each member’s preferences, calendar and social groups. Tee sheet data will give us insights into a member’s calendar and social groupings. Their food and

If I receive an invitation to a wine tasting at the local wine shop, I will probably read it and throw it away. If I receive an invitation that specifically references wines I have previously purchased, and I found out one of my good friends who is a wine expert was also going to be in attendance, I wouldn’t miss it.

I simply believe we must acknowledge that what has worked in the past is not nearly as effective. We must shift toward modern communication and technology tools to keep members engaged in the club and wiling to prioritize golf. As such, we are making significant investments in creating a new version of the oldest marketing tactic known to human kind – the invitation.

Think about what makes a compelling invitation. It is personalized and highly relevant to individual tastes. It’s timely and easily fits within our schedules. It’s delivered in the preferred method of communication and ideally comes as a strong referral from a trusted friend or colleague.

beverage tendencies at both an individual and segment level will inform event ideas.

Event registrations will provide further information into both behavioral and psychographic influences such as family and social preferences. The collective member profile will consistently inform how best to match people and events with “whom they choose to play.” This level of intimacy takes your member relations to an entirely different level.

In our fast-paced world, it is the invitation that will ultimately find its way through the clutter and get our attention. The well-crafted copy will speak to us directly.

We will reward the relevance of the event and consider carefully the request for our time. Having trashed countless offers, inquiries and requests before it, we will actively consult our trusted friends and influencers and ultimately make the decision to attend.

In the words of the great Oscar Wilde, “Nothing annoys people so much as not receiving invitations.” BR

CALEB CHRISTOPHER

Caleb Christopher is the director of technical operations at Cino Ltd. He directs a team of Certified Ethical Hackers conducting remote and on-site cybersecurity and vulnerability assessments for clubs and other organizations across the country. He can be reached at: (516) 932-0317, ext. 305 or via email: caleb@cinoltd.com

Role-based Access Control Cybersecurity Series - Part III

This series is intended to provide topical insights to instigate productive conversations for club boards. Watch for bold keywords, which make excellent talking points with technical advisors.

Efficient IT systems management increases security, reduces longterm costs, and scales well. One core component of well-managed efficient IT is role-based access control (RBAC).

This aptly-named technique centers around a combination of job descriptions, digital assets and well-thought-out permissions. We’ll be applying the concept of access control lists (ACLs) to groups of users and digital items outlined in the BoardRoom January/February, 2018 article on network segmentation.

Here is the short version: Make a list of job roles and network objects (such as network folders), then use a spreadsheet to build a matrix that allows you to define from a business-need perspective whether a given role has R ead and/or W rite permissions on each object.

Users are then added to any required role-groups and they receive the combined permissions of their groups. This is just another form of an ACL based on a person’s role.

The real and nearly immediate benefits are threefold:

1. Internal auditability– read that “peace of mind.” You can rest assured sensitive data or systems are not overshared and the wrong person can’t delete a whole critical folder. This means you as a business leader are demonstrating your intentions to follow best-practices and protect data.

2. IT is understandable and in touch with business operational needs (at least in this area).

3. Changes are easy, practical, and cheaper (whether using internal or external labor).

For example, hiring seasonal finance assistants may be worrisome because we’re unsure exactly which folders they need to access. It

may be expensive considering how many times we have to ask the IT guys to add new permissions/access during their first couple of weeks.

Taking the time to define the objects and roles is a solid investment in long-term IT operations and sets the stage for success by reducing technical debt.

Technical debt is a salient concept, which is critical for decision makers to understand. It is essentially the long-term costs of not doing things right in the first place. A great book for your technical managers, The Phoenix Project, conveys the concept very well in story form. The sage character in the book says “… like financial debt, the compounding interest costs grow over time. If an organization doesn’t pay down its technical debt, every calorie in the organization can be spent just paying interest, in the form of unplanned work.”

In fact, it does cost both money and time, often unnoticed unless a business-oriented technical professional makes changes and measures the improvement. A 2010 Economic Analysis of Role-Based Access Control report details the benefits of RBAC related to technical debt from survey respondents:

• Has your organization encountered any challenges with routine provisioning because of a lack of standardization in roles … across different applications or systems? Fifty-five percent replied yes

• Has the use of roles improved the efficiency of maintaining your organization’s access control policy? Eighty-four percent replied yes.

As a result of my observations in many businesses, I recommend every organization look into subscribing to a virtual CIO (and holding them accountable!). A good vCIO will focus on business issues, solving with well-planned technology where applicable. BR

Do You Know My Name And Where I’m Going?

JEREMY HOCH

Jeremy Hoch is president and owner of Anchor Consulting Services, an independent consulting and training organization specializing in club management software and best practices During the past 15 years, Jeremy has worked with hundreds of clubs. He can be reached at (786)-732-4950 or Jeremy@anchorcs.com.

Member recognition seems to be a hot topic throughout the club industry and for good reason. A lot of their hard-earned money is spent by members to join and participate at their clubs and recognizing a member by name elevates service levels.

Which example describes the conversation happening in your club between a member and your waitstaff:

Good afternoon Mrs. Smith, will you be having iced tea and a club sandwich today?

or Good afternoon Ma’am, what is your member number and what would you like for lunch today?

Even if the member has no intention of having iced tea and a club sandwich they will appreciate the greeting and service since it gives your club the personal feel that we are all striving to deliver. When being greeted with second example, members might as well be patronizing a public restaurant as they are not receiving the service level commensurate with their initiation fee and annual dues billing.

Whenever this conversation comes up with board members and managers the question is always, “How do we implement something of this magnitude?” The answer is to start slowly.

There are very simple places to start: Every club management system on the market comes with the ability to add member photos, family members and personal preferences. At the very least you can build this database and create your own tools and programs to educate managers and staff.

Contests and incentive programs can work well to encourage staff to participate and thrive, in your member recognition program. We have seen clubs do very well creating their own programs and requiring all staff to participate. Additionally, there are existing software products that use educational techniques to create games and contests to be played online. These software programs train and quiz the staff on membership information allowing them to earn points and rewards based on performance on these quizzes. When implemented efficiently and across all departments clubs can have a great deal of success and increase member recognition and thus member satisfaction. Another option is to use available technology and have a product alert your staff of members’ name and preferences as they approach a service area. Imagine a brand-

new host in your restaurant is able to greet your members as, “Good Afternoon Mrs. Smith, let me show you to your table by the fireplace.”

These types of recognition programs are based on the member’s ID card, key fob, beacons, cell phone, or facial recognition and can be used to display member name and preferences on a screen as they approach areas of the club. These sophisticated technologies not only enhance member recognition and satisfaction but naturally lead to the details that every club wants: Utilization statistics.

Now we are accomplishing two tasks at the same time: making the members feel welcome by providing excellent service and preparing ourselves with data for these conversations in a future board meeting:

1. Should we expand the Grille Room?

2. What are the busiest dates and times at the pool?

3. Are the card rooms big enough to handle the demand at peak times?

4. Are enough members using the fitness center to justify a renovation?

5. Can we justify the expense of adding new tennis courts? Clubs all across the world are having these conversations and relying on staff to gather data to help justify these decisions. These decisions are normally based upon financial records as well as usage data gathered from all sorts of systems: Point of sale, tee times, dining reservations, tennis reservations, spa reservations, website traffic and even manual tally sheets that can be entered into a spreadsheet for tracking.

We have tools available today for member recognition. We have tools available today for tracking utilization of our outlets. The future will be combining both technologies allowing clubs to predict:

1. When will our members be visiting?

2. What will our members do when they arrive?

3. Will members play golf and go home, or will they stay for lunch?

4. The possibilities are endless.

These predictive technologies will help us provide stellar service, better manage our clubs and provide the answers and knowledge to take our clubs into the next generation. BR

by Angela Grande

Glen Head Country Club, Glen Head New York TRANSFORMING AN OUTDATED INTERIOR

The vision and goal of the recent renovation at Glen Head Country Club focused not only on transforming an outdated interior but also updating bar and dining areas to function better and accommodate its growing membership. As with all our interior work we set out to create a club that is specific to their culture and aesthetic.

The club has been very “forward thinking” when addressing the interior style that it wanted, and we give credit to them for wanting to be ahead of the curve. They were clear that they preferred a clean more modern/ transitional look that yet would not be trendy and stay current for many years.

The design however should retain the existing traditional elements such as wall paneling and columns that would mix well with the new look.

The renovation is very upscale and incorporates custom FF and E Items such as furnishings, carpeting and lighting “exclusively” designed and made specific for Glen Head with high end quality materials equivalent to what the members would put in their own homes.

The atmosphere is both elegant and comfortable. Interiors that “sing” when you enter are very important in our creating spaces and they must be a place that makes you want to stay. It is also appealing to all ages including the children of the many families that belong.

Glen Head has a robust food and beverage program. One of the biggest challenges we faced when designing all the spaces was keeping in mind that they would be multifunctional. Their 5,000 square foot ballroom needed to accommodate many types of large venues and would also need to be divided for smaller events.

Custom room dividers that blend into the existing recessed wall paneling when not being used were fabricated and when standing alone integrate with the total design of the room.

In order to attract bridal parties a new bridal suite was designed in the ladies’ locker area. We included full length mirrors, lounge seating and hooks, which act as jewelry to the room and accommodate hanging of gowns. The color palette and furnishings create a beautiful setting for the making of memorable photographs.

Glenwood’s members are very social and the need for increased seating capacity at the bar areas was a priority. The main bar was renovated and the former seating areas in this area were replaced with hi-top tables and barstools. The existing ceiling heights in this area are fairly low and could not be heightened, so the use of lighter grey toned woods and color palette helped to open up the space.

We incorporated diverse seating arrangements in the adjoining lounge area, which make the room more interesting for socializing. In addition to available seating in the lounge, the living room also takes on providing more seating for all types of occasions offering even more seating groupings.

These rooms open up to a newly expanded dining terrace and look out to the beautiful course views all adding to the “experience” of being at this property. There is an exceptional integration of inside and out here very special to this club.

The wood paneled members grill had only a service bar and the need for a larger bar was apparent. We expanded the Bar and tripled its size. This along with adding more televisions give the room a new life along with being the most clubby-looking space in the building.

The club’s mixed grill being the largest sit-down dining room maximizes its space and transformed from a dark room to one that is bright and appealing. Color palette is clean with off whites, taupes and blue. Artwork developed for the club hangs on the walls and windows topped with decorative valences are open enough to the views.

This renovation has and continues to accomplish the goals of every club today: Aesthetic and productive environment which the members are very satisfied with, a strong appeal for engaging new members and increased F&B revenue.

The positive response has been 100 percent and reflects a successful effort in reaching the goals from the very beginning of the design process through its reopening. BR

Angela Grande Design 500 East 85 Street, New York, N.Y. 10028 Suite 20j - (917) 873-2425

LBOARDROOM DESIGN FEATURE | Bozeman Club & Corporate Interiors by

Susan Bozeman

A New Look for Atlanta Country Club

ike so many well-established clubs today, Atlanta Country Club found itself in need of an interior upgrade. A recurring theme in today’s private clubs - changes in member usage – along with the club’s desire for a new design style, pushed the stimulus for change. The good news? The clubhouse square footage remained sufficient, so any new work could be contained within the existing building footprint, thus avoiding expensive additions.

The club’s building committee gave Bozeman Club & Corporate Interiors a clear directive to create a totally new, less traditional and more casual design style throughout the clubhouse.

In addition to the style change, the existing formal bar and the family dining room required significant construction changes, including a larger, U-shaped bar, all new doors and millwork, and the addition of booth seating, new lighting and multiple large TVs throughout. A new fireplace was also added in an existing dining room to create a more intimate atmosphere.

All of these changes, along with the new furnishings and color palette, resulted in a series of cohesive, casually comfortable rooms that flow together from both a functional and design perspective. Although they open onto each other, each room maintains its own distinct character.

These heavily renovated rooms offer the members an exciting new area of the clubhouse for socializing. The new bar and dining rooms provide a vibrancy

and desirability that is absolutely necessary in today’s market to promote on-going member usage.

A complete facelift for all other member areas of the clubhouse was as equally important as the construction changes. In order to achieve the club’s desire for a more transitional design style, virtually all of the existing finishes and furnishings were replaced. The refurbished areas included the entry, living room, ballroom, both men’s and ladies’ lockers and lounges, the trophy hall and connecting corridors.

An improved trophy hall highlights one unique component of the renovation. The club has hosted multiple PGA Tour and USGA tournaments. It is also the home course for retired golfing great Larry Nelson. In order to better showcase the club’s golfing history, photographs were collected and reframed. New display cases were designed to house the club’s most important trophies, including a case dedicated to Nelson’s 1983 U.S. Open win at Oakmont.

Although the new-look clubhouse interior is quite a departure from the old, the members have fully embraced the changes. They are excited about the future and the many great times that lay ahead in their sleek new surroundings at Atlanta Country Club! BR

Bozeman Club & Corporate Interiors is an Atlanta-based interior design firm specializing in private clubs, corporate and high-end residential design.

Susan Bozeman may be reached via email at susanb@sbbdesigns.com or you may contact Jeff Barrett, senior vp of club and corporate design at jeffb@sbbdesigns.com. Our phone number is (404) 237-7745.

by Craig J. Smith

Strategy-based Design THE KEYS TO CREATING THE PERFECT CASUAL DINING SPOT

As a clubhouse designer, I always enjoy sharing our substantive new approaches to clubhouse enhancements that improve the overall member experience, create a new or enhanced revenue opportunity, and streamline operational efficiencies.

For the past several years we have been immersed in creating new casual dining venues with a social bar and lounge component. Rather than discussing the ubiquitous décor, color, and furniture trends for casual dining and social bar venues, here are our tried and true touch points to jump start your planning process.

FIVE KEY OFFERINGS THAT MAKE CASUAL DINING VENUES AND SOCIAL BARS POPULAR…

1. Drop by the club and have a drink

2. Eat at the bar

3. Drop by to watch a sporting event

4. Pre/post-dinner drinks and socialization

5. Enhanced décor and all-day menu offerings

FOUR ESSENTIAL TOUCH POINTS THAT WILL KEEP MEMBERS COMING BACK TO THE CLUB…

1. Create spaces that appeal to the broad dynamic of your membership demographic

2. Create spaces that are focused on comfort, enticing members to “linger longer”

3. Create spaces that have a fun energy

4. Create spaces that offer varied dining and social experiences in one venue

THREE ESSENTIAL STEPS TO ENSURE YOUR NEW CASUAL DINING VENUE AND SOCIAL BAR BECOMES THE WELCOMED GATHERING PLACE YOU HAVE ENVISIONED FOR YOUR CLUB.

1. Only consider design solutions that will make your club special or unique by clarifying and confirming the club’s personality and story

2. Only create spatial changes that will maximize use and return on investment

3. Only introduce design and furnishing solutions that match the unique features of the clubhouse, current/future needs, and membership demographic

The single most important takeaway? No matter what club improvement you may be considering, identify your core identity as a club and how you want to be distinguishable from other clubs.

Doing so will ensure each and every clubhouse enhancement will keep you ahead of the competition and relevant to the needs and expectations of today’s ever-changing membership demographic. BR

C2 Limited Design Associates is an award winning interior design and clubhouse styling firm located in historic Fairfield, Connecticut. Craig J. Smith can be contacted via email csmith@c2limited.com or telephone (203) 259 2555, ext. 312.

TESTIMONIAL

In the fall of 2015 a small group of club members sat down with Craig Smith from C2 Limited to begin the creation of a transformative new bar and grill room at the Westchester Country Club. The meeting started with Craig Smith asking us, ‘So, what are you looking for?’

“I immediately chimed in saying, ‘Nobody answer that!’ I continued, “We want the bar over there, plenty of seating, beautiful wood, classic pictures on the walls, and a timeless/classic look which gives a nod to Westchester’s amazing heritage. Now YOU tell US what we want.”

This turned out to be the most fortuitous sentence the committee could have made. We put our full faith in Craig, Christina, and the C2 team and we never looked back.

Mark J. McCooey, Chair, WCC House Committee

Member of Travis Room Renovation Committee Westchester Country Club | Rye, New York

As the premier private city club in Pittsburgh, the prestigious Duquesne Club has provided its members and guests with exclusive recreational, social and business experiences, superior service and exceptional personal attention since 1873.

As the club began to look strategically toward its future, club leadership sought a design partner who could help modernize the facilities while celebrating the club’s history and remaining respectful of its traditions.

Hired in 2014, Chambers developed design solutions based on information gathered from a membership survey. These findings showed that members wished to maintain the club’s legacy and brand while transforming the club into a social place where business occurs, rather than primarily serving as a space for business meetings.

The renovations reimagined the club’s traditional spaces to create comfortable, intimate areas for informal gatherings – a true “home away from home” for members.

Such renovations include transforming the Ricketson Room, which now features a refined bar/lounge area that has brought an active social life back to the club. Inventive new menu offerings with small plate options add variety and convenience for members looking to grab a quick bite to eat throughout the day.

Once a large living room that remained vacant most days, the Ricketson Room now offers flexibility and versatility for various club functions. The layout and décor were carefully

BOARDROOM DESIGN FEATURE | Chambers by

Rick Snellinger

Celebrating History and Tradition With Forward-Thinking Design

selected to bring a lighter, fresher feel to the space, enabling it to transform for varying needs –whether members are looking for a quiet place to enjoy a cup of coffee in the morning or converse with friends over a cocktail in the evening.

Chambers also designed a new executive business lounge where members can “plug-in” and conduct business remotely. This space features individual computer carrels where members can retreat to a quiet, upscale work environment. At the same time, a communal area with soft seating makes the space perfect for collaborating with small groups as well.

To create a memorable first impression, the entry lobby and waiting room were renovated to be more inviting and a dedicated history gallery was created to celebrate the membership’s profound appreciation of their club and its legacy.

Spaces were also refreshed to be more female-friendly, creating public spaces where women can comfortably entertain guests of both genders, as this historically occurred only in seated dining areas.

Renovations were completed in the spring of 2017. One year since reopening, the members are thrilled with the outcome and the new spaces are thriving. Utilization has increased dramatically, and a new vibrancy and energy has been brought to the overall atmosphere.

With careful planning and attention to detail, Chambers was able to respect the profound history of the club while appealing to today’s member and preparing for continued success in years to come. BR

Chambers has worked in the private club industry since 1945. Today, as the largest hospitality design firm in the nation with a singular purpose of working with private clubs, Chambers is a thought leader in the industry dedicated to the advancement of the member experience. The firm is led by president and CEO Rick Snellinger who was recently named by Golf Inc. magazine as one of the top 10 individuals shaping the future of private clubs.

ClubDesign Associates | BOARDROOM DESIGN FEATURE

by John Cochran

Bridging the Gap of X, Y & Z Generations

With the growing trends and taste of the younger members, clubs are starting to realize that they need to adapt. Clubs need to adapt, or they will die of natural attrition as the older members leave the club. Older members are leaving their club because they’re moving into assisted living, relocating closer to grandchildren, or death. If clubs do not react and cater to the younger members, then they are setting themselves up to fail.

The younger members are on the move with the whole world available from their smart phone, tablets and laptops. The days of the traditional club with traditions of not blending business with pleasure in most cases are becoming a thing of the past.

USB ports installed in furniture and adjacent walls are replacing phone booths or privacy rooms. The younger generations are doing business at the club, cranking out several emails, depositing their laptops in their locker and going out to play 18 holes, tennis, workout and yes, now…pickleball.

Also, today’s young parents are looking for clubs with “kid friendly” amenities that cater to their children. They require that their club en-

courage the interaction of other children. Whether it consist of a “Kids’ Club” area at the club to organizing family events where the whole family can enjoy like-minded parents in these events.

Also, with the club becoming more of a “watering hole” for empty nesters and young members alike, members of all ages are turning to the club for after hour activities within their cocktail Lounges. This is especially significant for members of all ages to meet each other and be proud of what the older members have built for future generations while observing the younger generations enjoy the amenities.

Members of all ages also enjoy the outdoors and when you can combine the lounges with a patio element and/or firepit, this makes for a nice resort feel that is conducive for younger entertainment.

As an older, member at my country club in Fort Worth, Texas it’s a great feeling when I can observe our strong younger membership enjoying the club. It’s a great feeling knowing that my club will be in good hands. And, the only way to achieve this is to cater to the younger members NOW and fight that terrible club disease…attrition! BR

John R. Cochran founded ClubDesign Associates in 1992 and has been involved in 250-plus renovations of country clubs during his career. Personally, John is a board member at Colonial Country Club in Fort Worth, Texas. He has served on their long-range planning committee and will be serving as chairman of the building committee for the year 2018.

1121 Burton Hill Road / Fort Worth, Texas 76114 (817) 810-0333 / F (817) 810-0336 Fort Worth - Palm Desert - Scottsdale - Beverly Hills www.ClubDesignAssociates.com

BOARDROOM DESIGN FEATURE | Harris Interiors

by Kelley Harris

Changing Your Club’s Interior Identity

IT’S TIME FOR AN OVERHAUL!

Many clubhouses have heritage and tradition that inspire design. Sometimes the location influences the design, like the rolling hills of the golf course or an incredible city scape. Whether your clubhouse is traditional or contemporary, current or behind the times, historic or brand new, your facility must appeal to your membership.

In the 1990s, it was decided that Italy, namely Tuscany, would inspire interior design in Florida. Yellow, red and brown made up the palate, textured stucco and limestone architectural elements defined the backdrop. Bay Colony Community was no exception to this popular design trend of the time.

In 2017, Bay Colony Community recognized it was time… or past time… to renovate its Beach Club, a place that residents covet as a dining destination. The clubhouse was built in the late 80s and was void of any notable interior architecture or detailing. The walls were adorned with murals of Tuscan scenes, over embellished accents, and all of the yellow, red and brown you could ask for, but never want to see again!

It was time for an interior overhaul. Bay Colony was ready for contemporary, clean and sophisticated design. Painting

everything white shifts the focus from the building’s design shortfalls, to the curated artwork collection, interior furnishings, contemporary custom lighting, and the view. The view! The Beach Club boasts panoramic views of the Gulf Ocean, so the color palate was simple: rich blues, soft grays, and vibrant greens within an envelope of warm white.

An incredible wall of climatized wine cabinets encased in lacquered navy millwork is the focal point of the entry, with views of the Gulf though windows beyond. Members can enjoy a new custom bar with brass accents, white quartz and antique mirror that reflects the incredible ocean views.

A brand new screened terrace overlooks the ocean and offers “al fresco dining,” the only lasting Italian inspired theme in sight! New cantilevered window bays create private dining opportunities in the sprawling facility.

The residents are thrilled with their renovated Beach Club. Revenues are up 30 percent and the facility is competing with local restaurants. The flexible and fresh color palate has attracted more weddings and private events.

The take-home from the renovation at Bay Colony is to identify what your members need and deliver what they want. Made-up themes are a thing of the past and it’s time to celebrate your club and what makes it unique. BR

Harris Interiors is a full-service clubhouse interior design firm based in Atlanta, Georgia. Please visit our website for additional information, or contact Kelley Harris, Principal Interior Designer, (404) 492-5997, kelley@hintatlanta.com.

by Peter Cafaro

Complex Club Dining…or… The Club Dining Complex

In the study of all things club, much discussion is placed upon trends, and the most important trend is likely the need to continually attract and engage members. Everything else is a strategy or tactics to accomplish the goal ... a full and happy membership.

The conversation about the need for “casual” dining is one that occurs in every boardroom and throughout every facility master plan. But is “casual” the right word. Are we thinking of the right image when we think “casual?”

We should be thinking “restaurant!” Do members not want to have a vibrant social experience with their friends at their club much like they would expect to have at their favorite restaurant? Then why not create that experience in the club?

Today’s main member dining space should be a destination. It should be sophisticated and upscale and reflect the culture of the club and its members’ social tendencies. It should be always available as the members’ “go to” spot with members never having to stop to check if their favorite place is being used for an event.

It should be fun, vibrant, and powerful containing varied seating environments including tables, booths and banquets, lending to the restaurant feel. It should be more than a room, it should be a … complex.

Every club needs a clearly defined member gathering spot. The main event! That should be the dining complex, which is open for the enjoyment of members and their guests whenever the club is open. The club dining complex consists of four equally important elements:

The Bar: What great restaurant that you love doesn’t have a kick @%$ bar? It the place where members meet, members eat, and members just hang out to watch tv and socialize. It’s the place where everybody knows your name. It is socially and literally the center of it all.

Adult Dining: Clubs may be all about the family but let’s not forget the adults. There are times, even in the most family-centric clubs, that our members are looking for an adult experience. That doesn’t mean they should look elsewhere. The family dining space is the area that is most proximate to the bar so that some of the energy and excitement (and yes, a little of the noise) of the bar can waft over to create a lively adulty dining atmosphere.

The Family: Our families want to feel safe and comfortable when dining at their club. Parents do not want the pressure of worrying if the little ones are bothersome or a bit too active, so families need a space of their own. But be careful. That space cannot be a separate room but rather is an integral part of the “complex.” Naturally, further from the bar is better but families need to feel that they remain part of the club community even when they are with the kids.

Outdoors: Everyone wants to be outside. To dine, to drink to lounge around a fire pit – it all happens outdoors. The 4th element of the complex is outdoor dining.

Like the others, outdoor dining must be integrated into the overall bar/dining experience. This is not pool dining but regular upscale al fresco dining.

All four of these elements are ideally combined in a single dynamic space that can be apportioned flexibly affording each user group their own comfort zone while they enjoy the company of their fellow members. It is the dining complex that will drive your members to adore what their club has to offer on a very regular basis. It’s not formal but it is not casual either. It must be “just right” and always available. BR

Founded by Judd Brown and Steve McMahon in 1983, JBD, together with sister-architectural-firm, Jefferson Group Architecture,have successfully completed an impressive array of projects for the hospitality and club industries across the U.S.

700 School Street, Unit 2 Pawtucket, RI 02860 Phone: (401) 721-0977 www.JBDandJGA.com

BOArDrOOm Design FeATure | Lichten Craig Architecture + Interiors

by Kevin P. Lichten

First Impressions

DO YOUR GATES, DRIVES AND PARKING LOTS MATTER?

What image is portrayed to the larger community and to your members by the views of your club from public roads, your gates and drives? Is it one of excellence?

We were recently asked by a country club in northern New England to prepare a master plan that would contain many of the usual specific needs: a new pool cabana and deck, platform tennis courts with a warming hut, a new maintenance building and, within the existing clubhouse, an expanded bar and casual dining.

The request also included several more “soft” goals including a greater level of excellence, more family amenities and attractions, a more relaxed atmosphere and features that would help grow membership and year-round use.

However, we weren’t asked to look at how the small city in which the club is located views the institution, and how guests and members perceive the facility as they approach the club from nearby roads.

The clubhouse is located in a distinguished mansion with a rich architectural and cultural history – the former home of a prominent local citizen. But these challenges quickly became obvious:

• The entrance to the club grounds was through an original gateway on a heavily trafficked road. Entering and exiting the club grounds was dangerous and frightening

• The views of the clubhouse for the public were not controlled. So privacy was not achieved by screening nor were glimpses beautifully framed. No one would drive by and think “That’s beautiful. I’d like to join that club”

• Most members entered the grounds through a secondary entrance off a side street that was easier to navigate. The first view was of the golf cart barn with large open doors

• The main driveway was lined with angled parking, so the next view was of the back end of a hundred cars!

• Parents taking their kids to the swimming pool from their car took the most direct route, crossing the entry drive and dodging entering cars. Likewise, when leaving at the end of the day families could go right to their cars and never enter the clubhouse

• A beautiful porte-cochere, originally designed for horses-draw buggies now served cars, bring them dangerously close to the front door. Literally a sea of asphalt paving lapped at the front steps and the base of the elegant old house.

Although these problems had never been articulated a few simple solutions emerged:

• Close the old prominent gate on the busy road

• Develop the secondary entrance into a new distinguished gateway appropriate to a facility of the highest quality

• Re-landscape the grounds with plantings and berms to block the sound and views of the adjacent heavy traffic and to control public views of the private club

• Reconfigure the entrance drive to eliminate parking along its length Develop a new parking area separated from the drive by planting

• Develop defined pathways from the parking to the clubhouse and then to the pool enclosure

• Install a large awning in front of the clubhouse. Convert the porte-cochere to a covered entry and waiting area

• Bring lawns up to the clubhouse and pull driveways away from the building.

The club embraced these goals with enthusiasm. Some simple site planning moves re-established the architectural dignity of the old mansion, gave the club a new prominence in the community, provided an easier way to enter and exit the grounds, beautified the approach to the clubhouse, eliminated a dangerous condition for young children, and brought new member traffic into the clubhouse. BR

by Bryan Webb

Activities Abound at Whitetail Club

CREATING AN AMENITY-RICH SOCIAL RETREAT

Country Clubs can no longer rely on golf as their sole amenity and are now working to enhance social opportunities and offer a broader collection of activities. While golf may still be the soul of most country clubs, family gathering spaces and amenities have become the heart.

Nestled in the mountains of central Idaho along the shores of majestic Payette Lake, Whitetail Club delivers a stunning new clubhouse to complement its growing year-round amenity-based property. The Lake Club is the newest feature at this world-class property that brings the community’s social hub to life.

“We are thrilled to have created something so distinct that gives our members yet another reason to call Whitetail Club home,” says Whitetail Club president Dan Scott.

The clubhouse rests amongst mature pines and boasts expansive patios and sandy beachfront terraces that invite members to relax in the outdoors. The connectivity with the outdoor activities, coupled with a unique fine dining experience, embodies the vision of this clubhouse.

The design team transformed an aging log estate home into a highly functional private commercial clubhouse. The facility is anchored to the site with locallysourced river rock, and natural materials like copper roofing and wood siding accents compliment the hand-hewn log structure, marrying it with the environment.

The result is a lakeside mountain retreat that captures the essence of Whitetail Club, with a sense of casual elegance that invites members to gather and enjoy the pristine setting. “We pride ourselves in the value we bring to a life well-lived here in McCall,” emphasizes Scott. “Here, style and sophistication meet world-class adventure and amenities in a chic gathering place for all ages.”

After an active day at the lake or taking advantage of the extensive nearby trails, members can retire to the clubhouse for multiple dining options. Whether it is a quick casual bite or fine dining featuring locally-sourced ingredients, members can refuel and relax with good company and cocktails.

The new clubhouse bar is an indoor-outdoor “bridge”, offering spirited social interaction accompanied by live music and impressive Payette Lake mountain sunsets. Members can relax in the warmth of the indoor dining room and lounges, or venture onto the outdoor terraces and gather around one of the handcrafted stone fire places for s’mores and star-gazing.

The teen retreat is tucked away, providing both convenience and separation, and offers a space for boisterous games and movies or a place to just get away. A Kid’s Camp is conveniently located on the upper floor in the clubhouse and provides a place for children to play in a safe environment or wind down after an exciting day.

The club also features a new state-of-the-art business center, card room and a reading lounge to round out a day by the lake.

The hub of activity in the summer can be found lakeside at the new outfitters store – “The Boathouse.” This recreation center boasts water sports and

activities, providing paddle boards, kayaks, canoes, snacks and sundries.

Well-appointed locker rooms connect to the store by a quaint covered porch. Members can enjoy easy-access boating and a relaxing day at the beach with chaise lounges, umbrellas, and a refreshing beverage. Exclusive beach-front access provides members with the comfort of lounging and swimming without crowds.

“With our new Whitetail clubhouse and boathouse, we look forward to having a front-row seat as we watch our members and their families make memories that will surely last a lifetime”, says Scott.

Whitetail Club is staged for success and is setting the tone for the future of country clubs by offering an activity-rich social retreat that will forge a balanced lifestyle and new family traditions. BR

Marsh & Associates, Inc. is a renowned clubhouse architecture and interior design specialist with over 20 years of expertise and has projects located throughout the world. Bryan Webb is a principal and director of design with Marsh & Associates, Inc. (MAI) and can be contacted via email bwebb@maiarchitects.com or via telephone (720) 266-2582.

How does a a good but not great swim/tennis club, overshadowed by one of the most exclusive and dominate country clubs in a major city, become a club of choice in its marketplace?

This is the story of a club manager who had a vision and worked to see it become a reality. This is the story of The Briar Club in Houston where, were it not for the club’s general manager, this club would still be a struggling swim/tennis club languishing on Westheimer Boulevard in one of America’s greatest cities.

The Briar Club’s manager made the difference by building a coalition of board and committee members who came together to build the impossible dream. It all started by involving club members with surveys, developing a strategic plan at the Board level and then planning club facilities which would achieve the club’s vision for its future.

The club’s vision of being the high-quality, urban family country club without golf, with an initiation fee and dues significantly below its golf/country club counterparts addressed a void in the Houston marketplace.

McMahon Group partners in this wonderful club success, and only as we would find in Texas, an initial project originally perceived to cost a few million grew to costing over $34 million.

And since the project, conceived as either doing it right or not at all, the end result shines with a new 54,000 square foot clubhouse, 530 car

In Total Club Transition

parking structure with an over-road walkway connecting the two, new swimming pools and tennis facilities, reusing the 26,000 square foot wellness center and adding extensive dining offerings.

A club originally with about $12 million in physical assets now boasts over $50 million in assets. An original 1,200-member club now has over 1,400 members and annual club revenues have jumped by over $5.7 million ($10.2 million to $16 million).

And all of this has been achieved primarily by the vision and hard work from a general manager along with some visionary club members including one extremely strong female club president who really made the difference.

So yes, a great club manager working with visionary club Presidents can truly move mountains and build pyramids. The Briar Clubs’ stars were then-manager Richard Lareau, CCM, ECM and then-club President Kim Grant, an attorney in Houston.

The Briar Club story confirms our belief that great clubs only come from partnerships composed of exceptional managers working together with exceptional club presidents who both have consensus building and, leadership skills. BR

Bill McMahon Jr., vice president McMahon Group, Inc., 670 Mason Ridge Center Drive Suite 220, St. Louis, MO 63141 | Phone 314.744.5040 | Fax 314.744.5046 mcmahongroup.com | info@mcmahongroup.com BOArDrOOm Design FeATure | McMahon Group, Inc. by Bill McMahon Jr.

Peacock + Lewis | BOArDrOOm Design FeATure

by Brian Idle

Turning Formality Upside Down… AND INSIDE OUT

Peacock + Lewis assisted John’s Island Club in Vero Beach, Florida to change the look and feel of their existing formal clubhouse to meet the changing needs of their membership.

The goal was to create higher member utilization as efficiently, environmentally friendly, and cost effectively as possible, reflecting a forward-thinking membership at this club steeped in traditional values.

The design of the new clubhouse transformed a formal, classically designed structure to a more casual, relaxed and contemporary venue. Activating the under-utilized dining venues on the upper level of the clubhouse surfaced as the major challenge.

The improvements opened the food & beverage venues to the outdoor environment which overlooks a putting green and golf course beyond. Features of this remodeling, which have been highly successful and well received by the membership, include an overall de-formalization of the building to create a more contemporary vibe while respecting the classic forms and elements of style for which the club is known.

Many of the changes have created a clean, open-feel to the building. Outdoor covered dining terraces and patios were added with exterior folding glass walls connecting to the indoor

seating. Premium wines are prominently displayed in temperature-controlled glass walls which provide visual interest while separating the dining venues and service galleries.

Club management directly credits the increase of 12,000 additional food and beverage meals served in January/February 2018 over last year to the remodeling of the golf clubhouse. BR

Peacock + Lewis has been providing master planning, architecture and interior design services to the club and hospitality industry since 1961.

1295 US HWY 1, Suite 200, North Palm Beach, FL 33408

Phone: (561) 626-9704

1610 Trade Center Way, Suite 5, Naples, FL 34109

Phone: (239 ) 631-2332

BOArDrOOm Design FeATure | Rogers McCagg Architects | Planners | Interior Designers by Christopher M. McCagg

Mixing Modern Elegance With Traditional Sophistication

Clients often come to us with a problem that needs to be solved. Sometimes a building needs renovation to resolve a structural issue. Other times, a face lift or an expansion is needed so our clients can best serve their patrons and attract new ones.

That was the case, in 2016, at Short Hills Club in Short Hills, New Jersey. We were happy to be the architects to complete a renovation and reinvention of what was the Harthshorn Room – an outdated, underutilized living and dining area – into what is now the new Lake Room.

Club members would often pass through the old space and the club’s leadership was sure there was an opportunity to turn the space into an inviting, relaxed gathering hub with a bar where club members could gather, dine, and socialize.

We agreed, and in collaboration with the Short Hills building committee and interior design firm Kemble Interiors, we developed a plan to create a warm gathering space that would include a brand-new pub – all with the flexibility built in to serve as a larger private function space to accommodate larger functions when necessary.

An existing outdated breezeway with its own charm was part of the mix, as the Lake Room opens onto it. We welcomed the challenge to maintain the breezeway’s unique appeal while integrating changes in décor and architecture that align with the new features of the Lake Room.

A key objective for the entire project? Create a grouping of rooms that would feel open, welcoming, and lively, all while keeping the club’s existing intimate character and ambience intact.

To say that this project is a success remains an understatement. Through an intensive planning, construction, and interior design process, our team and partners turned the Lake Room into an inviting, sophisticated, graceful space.

Throughout the renovated area, furniture, fabrics, and lighting reflect the club’s distinguished style while updating the décor to appeal to, and attract members and their guests of all ages. A new coffered ceiling lends traditional elegance to a room that feels fresh and new.

The completely transformed space provides ample soft seating with views of the club’s scenic pond. The variety of seating arrangements invites members to gather for conversation or to sit peacefully with a book or magazine depending on the time of day.

This area blends seamlessly into the dining room, which offers conventional dining tables as well as luxurious banquettes and settees that are as attractive as they are comfortable.

This refined and elegantly scaled space is the perfect spot for families and friends to enjoy a meal. The new pub features a custom bar that tastefully displays liquor, wine dispensers, glassware, and two TVs. The televisions add to the cozy living-room feel and allow club members to take in a game as they relax and socialize at the bar before or after dinner.

The breezeway is a distinctively charming space on a daily basis, and now offers the flexibility of dining expansion for larger private functions via a system of custom doors that transform from traditional French doors into slide-away panels when the Lake Room and breezeway are required to work together as one.

The new Lake Room has earned rave reviews from club membership and management alike. Members love the mix of coziness and elegance in the new space and use of the area has increased dramatically.

Casual dining and bar patronage have soared, bringing increased revenue in both food and beverage service (a 30 percent increase in the first year). This shows just how effective the renovation has been. Success like this only comes from true collaboration between architects, clients, consultants, vendors, and contractors. We are proud of our work at Short Hills Club and proud to exemplify the spirit of true collaboration in every project we complete. BR

Christopher M. McCagg, AIA, is a partner at Rogers McCagg Architects | Planners | Interior Designers and can be reached at (203) 354-5210.

Private Club Boards Should Focus on the Balance

While income statement analysis is interesting and useful, oftentimes too little time is spent at the board level on a private club’s balance sheet.

In many ways, the balance sheet is a much better indicator of a private club’s long-term financial health and that’s the ultimate responsibility of the board.

While an exhaustive discussion of the analysis of a balance sheet is beyond the scope of this article, here are a few thoughts and questions board members should be considering.

assets

Cash: Cash for operating and capital purposes should be kept separate and the integrity of each preserved. Operating cash shortfalls should be addressed with assessments or additional dues without “borrowing” from any capital funds.

Diverting capital funds can lead to deferred replacements of assets and/or delays in addressing improvements needed to satisfy current members and attract new ones. The board needs to assure that the club is accumulating capital funds at a pace consistent with the club’s long-term needs. As fiduciaries, it the board’s job to do so. If you don’t already have one, you need a long-term capital plan (10-year) matching long term sources and uses of funds.

Accounts receivable: Most private clubs do a good job of collecting funds and limiting access to the club quickly of members who are delinquent. Board members need to be vigilant in monitoring and pursuing collections in fulfilling duties to the membership.

Inventories: Board members should understand the appropriateness of inventory levels and the quality of goods on hands. Is everything saleable? Which vendors permit returns of unsold inventory? What might cause fluctuations in comparative balances?

Prepaid expenses: Some items such as insurance are routinely paid for in advance. Board members should understand the components of prepaid expenses and the timing of ultimate recognition on the income statement.

Property and equipment, net of depreciation: Private clubs have an insatiable need for capital. Clubs need to constantly replace physical assets and add new ones to meet the needs of current members and to attract new

ones. It’s all part of the broadening of amenities needed to compete in today’s private club market.

Depreciation consumes the capital base at an unrelenting pace. Healthy clubs must be reinvesting capital at a faster pace to maintain and increase the capital base. We believe this is the acid test of the financial health of a club

liabilities

Accounts payable and accrued expenses: Fluctuations in amounts owed to others must be understood and related to cash and accounts receivable balances. Is the club able to meet its obligations on a timely basis? Are all vendor discounts being taken properly?

Deferred revenue: These member dues billed and/or paid in advance. They are recognized as income as the season progresses. Board members should understand if the offset is in cash or accounts receivable and what the answer means to cash flow planning for the year.

Debt and lease obligations: Clubs often take on debt (and/or leases) for capital spending. Debt needs to be used judiciously and in the context of a long-term capital plan. The board needs to make sure that there is sufficient capital revenue being generated to both repay debt and to maintain the capital base of the club.

Net assets: This section is generally broken into line items for the operating fund (accumulated balance of operating results from private club inception to date), funds restricted for specific purposes (hopefully offset by segregated cash) and amounts due certain members.

For clubs that receive funds from the members that are refundable, boards must understand terms and provide for anticipated repayment in capital planning. Also, when you accept the funds, additional entries beyond increasing cash and the liability to members are needed to restrict the amount in the appropriate fund balance.

Private club board members should go beyond the income statement and understand the balance sheet and how it relates to the development of a long-term capital plan. BR

Joe Abely and Dave Duval are co-founders and principals of Club Board Professionals LLC. Joe can be reached at (781) 953-9333 or via email at jabely@cbpros.com ; Dave at (617) 519-6281 or dduval@cbpros.com

Joe abely Dave Duval

Jerry McCoy RECOGNIZED FOR BOARDROOM’S LIFETIME ACHIEVEMENT AWARD

By Chris Borders

i first met Jerry in 1975 when we were both hired as co-clubhouse managers at the atlanta athletic Club. We worked hand and hand together and our friendship has now lasted for more than 40 years.

The thing about Jerry was that he was always searching for ways to make a club better, sometimes to the distain of the general manager or boards for whom he worked. But today I believe that is what has driven his career and made him the success he is today.

Jerry has always a go-getter. I knew that when we had the U.S. Open at the Athletic Club in 1976. He pulled a couch from the lobby into his office and slept on it for eight days. After 3 ½ years at the AAC, he opened a restaurant. That experience of running a business and having to make a payroll had a lasting impact. Very few managers have been in that type of pressure. Those skills, honed through hard work, served him well in his career of helping clubs deliver on financial expectations.

I have always believed that you should put yourself in the position of the member to understand their needs and expectations. Jerry played golf and tennis. He was active in fitness and racquetball. Participating in these activities allows managers to understand the member perspective. It doesn’t appear that the upcoming generation spends enough time doing that.

Jerry took the CCM exam his first opportunity. I can remember a stretch where he went to every monthly CMAA meeting (46) for four years in a row. He moved up the chairs in the association and was president of the GA Chapter in 1998. He would go on to be president of the Alabama Chapter and vice president of The Virginias Chapter.

He wrote multiple articles for Club Management Magazine, won 10 Idea Fair awards, was part of the task force that developed the first BMI program at Georgia State University, taught a session in BMI for 15 years and developed two dozen conference education programs for CMAA in the 1980s and 90s. He chased educational opportunities, going to the prototypes of BMI IV and V and achieving his MCM designation in the first class in 1995.

In 2001 Jerry left club management to take his skills into consulting full time. It’s difficult to leave the security of a club job to take a chance. He had done it once before opening a restaurant.

If you ask him what his philosophy is he will say, “Lead, don’t follow.” From my perspective, that can have positive results only if you are working with the right board. Ten years or so ago, Eldon Miller of the Private Club Advisor asked Jerry what he would foresee as the major trend for the club industry in the next decade. His response was this: “We have done a great job over the past 20 years educating club managers. Now we need to do just as good a job educating board members as to their roles and responsibilities.”

So, what did Jerry do? He worked with Premier Club Services and wrote what is still referred to as the go-to text on club governance for managers and board members: the Directors Guide for understanding Club Governance and the Governance Checklist.

Jerry is a realist. I can remember our many golf games where he always said on the first tee. “It doesn’t matter what our handicaps are. You always beat me by four shots.” And that is one problem he never solved. However, that philosophy of understanding the real problems on the ground has served him well in providing logical and productive consulting solutions for his multitude of clients.

Jerry is always about creating new ways of planning and evaluating real situations and then providing tools to solve those problems. I remember when he worked with our human resources person to develop a comprehensive employee survey for our 350 employees. That helped me understand we had a major weakness in one of our departments.

Ten years or so ago, he wrote strategic Management, a handbook detailing a system for monitoring change, tracking progress and getting results in the private club industry. The handbook features a plan management system that allows managers and boards to stay abreast with both strategic and operational initiatives.

In the past decade or so he has worked with many other consulting firms on joint projects in the areas of strategic and master planning, operational auditing and food and beverage consulting, even going as far as designing a club kitchen in Tuscany, Italy.

Most recently Jerry has been named the dean of education for the BoardRoom In-

stitute. He has developed dialogue for 16 governance and strategic planning online seminars for the Association of Private Club Directors. He has also done programs to educate HFTP and a series of general manager programs for PGA professionals wanting to transition to general managers.

I’ve always believed that you measure a man not by his accomplishments but by his character. Coming from South Georgia honesty with a sense of humor is an important trait.

Jerry is a loving family man to his wife of 36 years, Mary, and stepson Jon. He is devoted to his church and participates weekly in Sunday School and Bible study. His faith carries over to how he treats people.

As a consultant he always wants to set both the general manager and club up for success. He develops a personal relationship with the client that fosters trust. He understands that it is their club and they have to make the decisions that are right for them. Although there may be trends that point a club in a certain direction it is best not to pre-judge what final solution is best for that specific club in their unique circumstances.

A lifetime achievement award should recognize an exceptional body of work over a whole career. I have been a business associate, a client and most importantly Jerry’s friend for decades. It is obvious that Jerry’s accomplishments are significant and, in many areas, cutting edge.

But if I ask Jerry what his most significant accomplishment is he would say all the wonderful friendships he has made on a lifetime of service to the club industry. And in the end, having a positive impact on someone else’s life is what it’s all about…and so many good reasons why Jerry McCoy is BoardRoom magazine’s Lifetime Achiever for 2017. BR

Chris Boarders, CCM is a former Club Executive of the Year and father of CMAA’s BMI programs. Jerry and Chris have been friends for over 40 years. As an interesting side note, Chris can pick up the phone and call any club in England, Scotland or Ireland because he knows all the club secretaries personally.

LeadeRship MoMentuM

robert sereCi

Robert A Sereci, CCM is GM/COO of Medinah Country Club, located in Medinah, IL. He can be reached at (630) 438-6825, or via email: rsereci@medinahcc.org

Turning Photographs into Visions - Part II Empathy for Others

While attending high school in switzerland, i discovered the fascinating world of photography.

To most, the correlations may not be obvious, but with introspection, I found that in my pursuit of street photography, the perspective gained from it has contributed greatly to my abilities as a club manager.

Some of my favorite photos are of people I’ve met during my travels. There is no limit to the time I’ll invest traveling, meeting, and getting to know someone before “shooting” them.

There was a cormorant fisherman in China with whom I spent four hours talking, with the benefit of a translator. On that same trip, I visited a vendor in northern China, where multiple generations of his family lived in the same village for over 200 years.

Many times, I’ve had to earn the trust of the individual before getting permission to take their photo. This requires much time and patience. It is important to know their stories and their personalities, so that their persona may be illuminated through still pictures.

What surprises me most is how warm and welcoming these strangers become as I get to know them for the first time. Seeing how they live, and learning about their struggles and triumphs, provides me with deep empathy and reminds me how blessed many of us are, especially in America.

As a club manager, my purpose is take care of people. This includes well-to-do members, as well as the diverse backgrounds of my employees. My staff come from various regions of the world with diverse backgrounds, cultures and levels of education.

Understanding how to empathize with people from all walks of life is part of what being a club manager is all about. Experiencing cultures and people from less fortunate areas of the world allows me to be familiar with human situations on many levels. In simple terms, it makes me grounded and well-rounded.

PraCtiCe Makes PerfeCt

As mentioned, like most photographers, I started taking pictures of flowers and mountains, but quickly learned that taking photos of moving objects, often at night, is a lot harder than still life photography done in daylight. People are constantly on the move, and the right moment may only exist for a split second, disappearing, never to be duplicated again.

The art of street photography is in capturing people at that one magic moment, which takes a great deal of observation and practice, and only every so often, outright luck.

Managing a club is similar in that it takes a tremendous amount of practice to master this great profession. To the untrained eye, or casual observer one would assume that what we do is easy.

Years ago as a 25-year-old GM, I quickly realized how much I didn’t know. I then spent the next 10 years learning and practicing before taking on the GM position for the second time. Had it not been for my mentor, I’d still be shooting flowers and mountains.

Much of what we do as club managers is not learned in a book or grasped in a classroom. We must be observant, ever-taking copious mental notes and then formulating that knowledge into our planning, coaching, and leadership.

Many times our knowledge comes by virtue of trial and error. Street photography is very much the same way as if we don’t like the snapshot, we can always take another picture at a different angle.

beinG CoMfortable With little to no reCoGnition

There’s a reason why you don’t see many professional street photographers - there’s not much money in it.

There is plenty of money to be made in taking portraits, wedding photos, commercial or nature photography, commonly found on calendars, post cards, or in doctors’ offices.

While these types of photos are in demand and are indeed beautiful, they typically don’t tell a deep story.

Street photographers, like me, take photos of people and places where most travelers are unwilling to travel. We go to obscure and faraway places to document stories that are untold; to introduce ordinary people making extraordinary sacrifices to achieve the normalcy that most of us take for granted.

I feel it’s part of my purpose to share what I see there and to introduce others to experiences that they never imagined existed.

What is important to me is not the money, or accolades that come with producing art that appeals to the masses, but the joy I receive is getting to know myself through the experiences of others and capturing real moments in time that truly mattered to me.

As a club manager, I do what I do not because I want recognition, but rather because I believe I have a purpose to fulfill. I entered this profession genuinely wanting to make a meaningful difference in people’s lives.

These lives include the people I serve and the people I lead. That is the point, it’s not about me - it’s about you.

Truth be told, club managers very seldom feel they receive the recognition they deserve, but I believe that expecting recognition is dangerous, as recognition only feeds the ego and usually leads to future bad decisions.

Street photography is not about me looking through the viewfinder… it’s about the person looking into the lens. The joy I receive is in knowing that my subject is aware that I care about them and understands that I am interested in their world.

Members look into my lens every time I see them.

It’s said that beauty is in the eye of the beholder, and one man’s trash may be another man’s treasure. Sometimes it takes me an hour to walk 250 feet. To me, it is not about the destination, it’s what you experience during the journey.

Street photography has trained my eye and my mind to take time to recognize the finer details of life. It has taught me patience and given me the realization that details do matter.

As for human nature, clubs are really no different than most of the places I have traveled. And like most of my subjects of art, my members and associates have a vast spectrum of human needs and desires.

While they may come in different packages, they are still relatable because we are all human.

Like tourists, some club managers walk briskly and only see the surface of obvious. Those who tend to analyze the mundane, and question the ordinary, can have an important impact.

What kind of person or manager are you?

Do you want to take the obligatory tourist picture of the Eifel Tower, or do you prefer to get to know and photograph the person who replaces the light at the top? BR

weLLness COMMITTEE

Crossing the Chasm

riCk laDenDorf

Rick Ladendorf is the president of Prevo Health Solutions, Executive Producer of the AMERICA’S HEALTHIEST CLUBS© Network and Founder of the Wellness Project™. Contact Rick Ladendorf at (949) 933-5470 or rladendorf@prevohealth.com.

Wellness is moving from early adopters and innovators to the early majority.

For nearly a decade, the McMahon Group has labeled wellness as a “mega-trend” that will impact the private club industry in many ways for decades to come.

Fast forward to 2018 and we find fitness visits are eclipsing golf rounds at many clubs and according to the International Health & Racquet Sports Association (IHRSA), this trend will continue for years to come.

“What can sometimes be challenging, is meeting the needs of a wide demographic that defines wellness in different ways,” explains Mike Gardner, general manager/COO of the Bridgewater Club.

“To ensure the membership is being serviced properly, programs have to be focused on different segments. This can get even more challenging when some of the membership has no desire to live a healthy lifestyle. For those that do, we offer a wide variety of services.”

Mike has it right. Not everyone is concerned about being healthy, so all we can do is provide options for those that care. Wellness, much like any other activity, amenity or service the club offers, i.e. golf, tennis, Pilates or Mahjong, as not every member wants or needs the same thing.

While not every club has the wherewithal to build a Taj Mahal, there are many things a club can do to incorporate health and wellness into their daily offerings without huge capital investments.

Take for example, Mission Viejo Country Club. The small fitness closet is unused 99 percent of the time, yet they have a yoga class that meets twice a week. Unfortunately, the only place to host the class is in the dining room. Not the most ideal, but it serves the needs of a couple dozen members.

GoinG MainstreaM

When we say wellness is crossing the chasm, what we really mean is wellness is going mainstream, but that doesn’t mean every club will have or has a fitness center.

Clubs without a fitness center need to be more creative as they may not have dedicated rooms, so they use available space. At Mizner Country Club in Boca Raton, participants used the pool deck to host early-morning boot

camps where all that is needed is a few bands, balls and weights, mixed in with some energizing music and a drill sergeant for an instructor and presto, you have a golf or tennis specific conditioning class.

PurPose Driven Clubs

Too often we as leaders look at the how and what, when we should be evaluating the why. The why, or purpose, is the reason members join, stay and refer.

They don’t say, “My club has 27 cardio machines, free weights and an awesome fitness room when they speak to their friends.” What they do say is, “I have never felt so good, I don’t have any back pain, I don’t get tired after walking 18 holes and I can hit the ball as long as I used to in my early years.”

These member responses speak to the why and they tend to stay longer and refer more because the club offers a lifestyle solution and the support needed to do what they love to do, i.e. golf, tennis, swim, workout, walk, hike, bike, run and stay active.

For many markets, wellness, fitness and lifestyle amenities and services are the norm – where it is a race to see who can build the best amenities the members can justify.

We believe, wellness is a mindset that when ignited with purpose and fueled with passion it creates a cultural shift that is unique to the club.

Wellness is the future of the Club inDustry

Whether you have a fitness center or not, wellness is here to stay and as Mike Gardner says, “This can get even more challenging when some of the membership has no desire to live a healthy lifestyle. For those that do, we offer a wide variety of services.”

At the end of the day, private clubs that embrace wellness have seen an increase in the number of Millennials, moms, foodies and health conscious people that want or need a place to socialize, recreate and enjoy the amenities and services that cater to their lifestyle.

So, while golf clubs are closing at a rate of 250-300 per year, it may be time to evaluate how wellness, and all that it entails, can be part of your overall strategy to remain relevant and sustainable for the foreseeable future. BR

Club Terminates Membership Over Wife’s Protests at Being Excluded from Early Saturday Morning Play

i’m not sure whether California’s san Joaquin Country Club has a membership waiting list.

If so, one lucky person presumably was offered membership because of the recent departure of Tim Orman, who left after 12 years of membership with the club.

Not that Mr. Orman’s departure was routine, or voluntary.

Orman’s membership was severed by the club, based on events arising out of his 8-handicap wife’s desire to play golf early on Saturday mornings. Until recently, the club banned women from tee times earlier than 10 a.m.

Last August, the club tweaked the policy, changing it from “MEN ONLY PLAY” on Saturdays before 10 a.m. to “MEMBERS ONLY PLAY.”

For the Ormans, this was a distinction without a difference, as the club’s membership rests with only one family member, in this case Mr. Orman. The only viable options for the Ormans would be to designate Ms. Orman the member (in which case the couple could not play together; nor could Ms. Orman play with female friends whose husbands were the designated members) or for her to buy her own membership, which would have required an initiation fee and duplicative dues.

The club took umbrage at what they perceived to be the Ormans publicizing of the club’s policy. Hence, the club terminated their membership. BR

We know it’s about more than great design. Everything matters.

MeMBeRship Musings

And the Winner Is…

bonnie J. knutson

Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of Hospitality Business, Broad College of Business, Michigan State University, Dr. Knutson is a member of the Country Club of Lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu

When i’m giving workshops or seminars on membership trends, i often start the session by giving all the attendees a thousand dollars (in Monopoly money, of course) and asking everyone what they would do with it. how would they use it?

Would they go out for dinner? Buy a new pair of golf shoes? Get the iPhone X? Donate it to charity? Save it? Or what?

What is always interesting to everyone is that no two people would use the money in exactly the same way. And there are little, if any, similarities in spending patterns based on age, gender, income, education, or any of the other standard demographic that we commonly use to segment our club memberships.

But isn’t that how we think about our members. The older folks want this. The Baby Boomers, want that. And the Millennials want – well, some folks think they want everything.

Even gender differences, rooted in the old axiom that men are hunters and women are gatherers, are blurring when it comes to what drives consumer behavior. In other words, demographics don’t seem to help us effectively understand how to engage (i.e. market to) our members anymore. They did 20 or 30 years ago, but not anymore. Those days are over.

So, if demographics aren’t the key, what is? The answer is emotions.

This truism was recently brought front and center in an online report from Brand Keys, which points out what marketers instinctively have known for a long time now: People buy with their heart and justify with their head.

In other words, it is increasingly being acknowledged that people respond more to emotional marketing than to rational information when deciding what to buy or where to buy it. Think about memorable Super Bowl commercials. Coca Cola’s Mean Joe Green. Budweiser’s Clydesdale Horses. Or the 2018 Dorito’s Blaze commercial with Morgan Freeman.

To support this cliché, the article cites a striking shift in the results of two surveys to determine what drives consumer decision-making. The research was conducted to help marketers more accurately understand and define target markets in order to better reach their objectives.

In the initial 2001 study, results showed that the ratio of emotional to rational influence at about 60:40. Fifteen

years later, the study was replicated, finding that there was a marked shift towards the emotional influence from the rational side, changing the ratio to 75:25. WOW!

While the heart ruled in both, the second survey clearly shows that you can’t move people with information alone. You need emotion. This obvious conclusion has been validated in myriad other studies too. “In test after test, emotional responses to [marketing] were found to be more influential on a consumer’s intent to buy…”

Think about your club’s website. Your membership brochure. Your wedding packet. Even your suggestive selling. What is their emotional-rational ratio?

To illustrate the power of emotion, let me paraphrase a story told by advertising wizard, Roy Williams that I often quote: One day, the owner of a jewelry store saw one of his salespeople watching an older gentleman who was looking at jewelry in the window. The salesperson was naturally happy when the man walked into the store and wanted to see the bracelet. She scurried over to the window, retrieved the bracelet and brought it to him. Seeing that the price was only $400, he said, “I’ll take it.”

The storeowner continued watching them from across the store until the sales person placed his gift-wrapped box into a bag and thanked the customer for coming in.

Seeing that he was about to leave, the owner walked over to gentleman and said, “I see that you bought the marvelous jade bracelet in the window. Is it for her birthday or your anniversary?” The gentleman said it was a gift for his wife on their wedding anniversary.

“I guarantee she’s going to love it,” replied the owner. “That’s really a very special bracelet, and I can promise you that none of her friends has ever seen anything like it. Before you leave, let me show you a necklace that goes just perfectly with it. Maybe someday you’ll want to add it to the bracelet.”

The customer followed the storeowner over to a showcase, where he dramatically presented an $8,500 necklace over his arm, saying, “If you ever want to take her breath away and see her cry, just give her this.”

Five minutes later, the gentleman walked out the door with a second package in the bag. He bought the necklace

Mary Callahan

Mary Callahan is compensation & benefits specialist for Club Benchmarking.

A 2013 graduate of the College of Holy Cross and volunteer for the Jefferson Awards Foundation, Mary joined Club Benchmarking in 2016 to lead research and development of advanced HR & compensation benchmarking for the club industry.

Private clubs are inherently people-centric. beautiful facilities and luxurious amenities are important, but it is the people – the members and the staff – who shape the club’s culture.

A club’s long-term success and sustainability hinges on the happiness and satisfaction of both of those stakeholder groups, which is why selection, retention and promotion of exceptional employees is so critical.

the investMent

Member dues pay the bills, including payroll. Financially, payroll is a club’s largest expense, regardless of the size of the operation, the scope of amenities or the level of service. Club Benchmarking data shows at the median, country clubs and golf clubs spend 56 percent of their annual operating revenue on labor-related expenses.

The number is a bit lower (48 percent at the median) for city, athletic and yacht clubs without golf. A club’s payroll budget is an interdependent balancing act between happy members willing to pay appropriate dues and well-compensated employees on a mission to make members happy.

When it comes to the club’s culture, getting all the players on the same page is no small feat, but it is requisite to a positive member experience. A unique characteristic of the club workforce is the tremendous number of variations in department and job titles.

To develop true “apples-to-apples” comparisons, we analyzed compensation for nearly 130,000 club employees and identified a standard set of 12 departments and 150 position titles. With so many moving parts, a great deal of management skill and focus is required to achieve stakeholder alignment around a common vision for the club.

DeveloPinG the riGht staff

Turnover in the hospitality industry is notoriously high, but clubs are ahead of the curve. According to the Bureau of Labor Statistics, median employee tenure in the hospitality and leisure sector is just two years. In the club industry, median tenure is three years for the year-round staff that comprises about 75 percent of the club workforce. That number jumps to nine years for the club’s executive team members. What tactics are clubs employing to bolster retention of key staff? Active development of the club workforce is one piece of the strategy. Recruitment of high school and college students for internship and apprentice programs is a

hR COMMITTEE

Staffing Matters

common club practice, which provides valuable experience and exposure to the club environment.

According to Club Benchmarking research, 49 percent of clubs have established internships and/or apprentice programs. About 12 percent of reporting clubs have managerin-training programs – formal training programs for developing and advancing junior members of the management team. Generally speaking, those programs are found in larger clubs. The median operating revenue for clubs that reported a manager-in-training program was $13 million.

Education reimbursement is another strategy used to promote career development among essential staff. Education allowance was listed as an employee benefit for 35 percent of clubs. Among year-round staff at those clubs, including executives, mid-management and hourly workers, six percent reported receiving an education allowance and 27 percent of the executive team members (GM/CEO/COO, CFO/controller, superintendent, director of golf, executive chef, director of tennis) at those clubs reported education allowance as a component of their compensation packages.

WorkforCe in the future

Clubs face the same challenges as many other industries: the rising cost of providing employee health benefits, patterns of shorter tenure among millennials and competition from employers offering popular options such as flexible hours, remote employment and casual dress.

To address the first challenge, rising cost of health benefits, some clubs have implemented employee wellness programs that vary from simply granting access to the club’s fitness and sports facilities to subsidizing membership at a local gym. Other clubs are expanding and improving employee meal options to promote a healthy diet and even hosting cooking lessons for staff.

It remains to be seen how growing demand for a more casual work environment and flexible hours will impact the very traditional structures of private club employment. The club industry has held its ground as a competitive subset of the hospitality and leisure industry to date, but the employment environment is clearly changing.

To be in the running for high quality candidates and position themselves as employers of choice, clubs will need to make informed decisions about compensation packages and keep an open mind in developing Millennial-friendly employee engagement programs. BR

PGA’s John Easterbrook Jr.’s On a Mission GROWING THE GAME OF GOLF

By Dave White, editor

the past, it’s often said, really does influence the future and for no one is that a truer statement than for John easterbrook Jr., PGa.

Easterbrook, the PGA’s first chief membership officer and a 30-year member of the PGA of America, adds a critically important perspective to the PGA’s management team, based at PGA headquarters in Palm Beach Garden, Florida, by focusing on members employment, education and business operational services for the nearly 29,000 PGA members.

In addition, he oversees PGA golf properties, including the PGA Golf Club in Port St. Lucie, FL and Valhalla Golf Club in Louisville, KY.

Easterbrook comes by his love for golf honestly, and as happens for many young golfers, his grandfather imparted significant influence.

“My grandfather was a PGA Professional, and I fell in love with the game and business of golf early,” Easterbrook related.

“I grew up on Jacoby Park in Laramie, Wyoming, and had my first real golf job there. Twenty years after leaving Laramie, I found myself talking to an investor group in London about golf’s economics and its importance worldwide. That group ended up developing The Grove, which hosted the World Golf Championship that Tiger Woods won. Sometimes you pinch yourself for the opportunities that golf brings… my PGA Membership, and the journey it’s taken me on.”

And the journey continues with much of it tied to Easterbrook’s vision for golf and clubs in the future.

“With my title and the PGA of America’s mission to grow the game, my vision – and hope – for clubs is to once again focus on golf programming. What I mean by that is finding ways to attract and retain golfers so private clubs can fill their membership categories. It’s the responsibility of everyone in the industry to promote the playing and benefits of golf,”

Easterbrook explained.

“Golf is in a good place right now. The allied associations are aligned with programs like PGA Jr. League Golf; Drive, Chip and Putt; First Tee, and LPGA/ USGA Girls Golf.

“PGA Jr. League had a record of 42,000 kids last year, and registration is already strong this year. The number of people trying the game last year climbed as high as it has been since 2000,” Easterbrook added.

“On the business side, the PGA is embarking on a new learning strategy, with one of our three career paths focused on executive management. There are hundreds of stories of PGA Golf Professionals succeeding as club and business leaders. A significant part of my role is getting these talented individuals to the interview table,” he offered.

Easterbrook, before joining the PGA’s executive staff in 2017, spent 20 years with Troon, a successful worldwide golf management, development and marketing company.

Easterbrook was instrumental in the growth of the company’s portfolio and responsible for the day-to-day operations of the vast global business that included more than 15,000 associates lo-

cated at 275 courses across 37 states and 31 countries worldwide.

“In my old world at Troon, we had tremendous success developing PGA Professionals as leaders and general managers at clubs. After all, the more professionals passionate about the game we have driving revenues at clubs, the better the industry will be,” he suggested.

“Being a senior leader and partner at Troon for 20 years” is an accomplishment that makes Easterbrook very proud. “I joined as one of the original corporate team members with six operations, then left as the COO with 275-plus courses in 37 states and 31 countries. It was an amazing journey, from learning about investment capital on Wall Street to opening new golf markets worldwide,” Easterbrook related.

He’s also very proud of the fact he can “watch people I’ve mentored grow and follow in my footsteps. I hired 77 people who remain in general manager or director of golf roles throughout the world. I’m proud of them for the amazing jobs they have earned.”

Mentors have played a big role in Easterbrook’s life.

Easterbrook learned his lessons well, especially from one of the people that he looks up to … Troon founder Dana Garmany.

“He taught me to take calculated risks, follow your instincts, surround yourself with ‘A’ players, always be positive, and don’t listen to negative people. He said, ‘John, you have to get comfortable being uncomfortable’– great advice for anybody.

“I strongly believe in mentors. If you don’t have a mentor, find one. Our profession is filled with amazing people who love to inspire the next generation. And if you’re reading this and not mentoring somebody, please do!” Easterbrook urged.

“I start with my father. He was a college football coach who taught me the importance of competing, winning and teamwork. While I loved to compete on the course, I quickly learned that ‘those guys are great, not just good’, which led me to the golf business, where playing to win is equally important.

“There’s no way I’d be where I am today without help from others. That started with my dad teaching me the importance of the left tackle. The quarterback only got the glory if the left tackle and center were good at their jobs. Every job at a club is important and serves a purpose. As a leader, you have to know how important every person is to succeed,” Easterbrook opined.

And there’s Pete Bevacqua, the PGA’s CEO.

“I took the job at the PGA because of Pete. He’s passionate about our industry and the game – a visionary leader who wants to propel us forward. His energy drives us to do as much as we can to make golf better and the industry stronger for years to come.

“Pete is focused on the game’s future, while protecting its traditions. Yet, he is willing to challenge the status quo,” Easterbrook explained.

So what challenges John Easterbrook? The answer’s in one word: “Negativity. What comes from being negative? Nothing. Being realistic is important, but rather than simply pointing out what’s wrong, be part of the process that makes things better.”

He slots “the reluctance to change” in the same bracket…and “the mentality that something worked great for years, so why change?”

This thinking dovetails with some of the things Easterbrook feels he does well.

“I’m a believer in the StrengthFinders assessment, so it’s easy for me to say what others think I do well – belief, responsibility, positivity, team building and self- assurance. The concept of team is critical. Today’s leaders must be collaborative, creative and engaging.

“I strive to listen to and understand the importance of everybody’s contribution. I also have a responsibility to be open, honest and trustworthy. You can’t lead a team, if you don’t have their trust,” he opined.

To Easterbrook, “family is number one. I have three amazing kids and a wife of 32 years. They’ve followed me across the country as I’ve pursued my dream.

“I’m also very proud of my relationship with the University of Wyoming and Coach Joe Jensen. I played golf at Wyoming for four years, and we’ve been able to do some amazing things together to promote and grow the men’s and ladies’ golf programs, “ Easterbrook related.

So really, how important is the game to Easterbrook, the golfer?

“I can’t adequately explain how much I love the game of golf and its people. What other game could I have played with my 82-year-old grandmother one day, and tee it up with my daughter, who was just starting out, the next?

“Whether playing with scratch golfers or introducing new players to the game, the joy’s the same,” Easterbrook enthused.

“This summer (2018), I’m looking forward to the Senior British Open qualifier and the Pinetop Open, two events that couldn’t be further from each other. At the Senior British, I’ll see some of the world’s best players; at the Pinetop Open, some of the worst.

“The Pinetop Open is an event my wife and I created that gets beginners and players who’ve never played before to join teams. The joy on a new player’s face hitting the ‘one shot’ that connects them to the game is the same that I’ll see from the professionals qualifying for the Open,” Easterbrook offered.

“And for me, I play as much as I possibly can. I can’t play enough!” Ah… truly a lover of the game of golf! BR

PGA Professionals Earn Advanced Certification

twenty PGa professionals across the country have completed requirements for the PGa Certified Professional Program 2.0 (CPP.2.0), a state-of-the-art platform that ensures PGa members have the skills, competencies and training demanded by employers and customers through the golf industry.

PGA CPP 2.0 is an intuitive program available on PGA.org that offers certifications in golf operations, general management, player development and teaching & coaching.

These distinct certification programs encompass seven defined career paths (golf operations, retail, general management, executive management, ownership and leasing, teaching and coaching, and player development), supporting PGA members who are committed to continuously enhancing their golf management skills, in order to stay ahead of the increasing demands of the industry.

CertifiCation reCiPients are

General Management

Rhett Fregoe, PGA, Kansas City, MO; Shoal Creek Golf Course, Midwest PGA Section and Ryan Flamm, PGA, Avon, CO, EagleVail Golf Club, Colorado PGA Section

Golf Operations

Matthew Stewart, PGA, Asheville, NC

The Country Club of Ashville, Carolinas PGA Section; Michael Wood, PGA, Baltimore, Baltimore Country Club, Middle Atlantic PGA Section; Joshua Deal, PGA, Stone Mountain, GA, Smoke Rise Country Club, Georgia PGA Section;

Brandon Nahale, PGA, Honolulu, Waialae Country Club, Aloha PGA Section; Nicholas Dwyer, PGA, Naples, FL, West Bay Club, South FL PGA Section; Michael Quinlan, PGA, Sussex, WI, Westmoor Country Club, Wisconsin PGA Section; Bobby Brown, PGA, Williston Park, NY; Baltusrol Golf Club, New Jersey PGA Section; Ashley Skidmore, PGA, Colorado Springs, CO, The Club at Flying Horse, Colorado PGA Section

Player Development

Brent Johnson, PGA, Venetia, PA; Lindenwood Golf Course, Tri-State PGA Section; Matthew Tinti, PGA, Scottsdale, AZ, Desert Mountain/Apache, Southwest PGA Section; Gary Botkin, PGA, Prior Lake, MN, Stonebrooke Golf Club, Minnesota PGA Section; Samuel Viegele, PGA, Ponte Vedra Beach, FL, TPC Sawgrass, North FL PGA Section.

Teaching & Coaching

Leighton Smith, PGA, Colorado Springs, CO Leighton Smith Golf, Colorado PGA Section; Andrew Santor, PGA, Boardman, OH, Millcreek Park Golf Course, Northern Ohio PGA Section; Sean Racki, PGA, Philadelphia, Mississippi, Dancing Rabbit Golf Club, Gulf States PGA Section; James Larkin III, PGA, The Woodlands, TX, The Woodland CC- Player Course, Southern Texas PGA Section; Samuel Smit, PGA, Fairfield, CA, Paradise Valley Golf Course, Northern California PGA Section; Adam Bowles, PGA, Lake Lure, NC, Bald Mountain Golf Course at Rumbling Bald Resort, Carolinas PGA Section

Easterbrook’s Top 10 Issues Facing Clubs Over the Next Decade

1)Rising costs. Labor, expenses, utilities – everything is more expensive.

2)Relevancy of private club membership. The next generation has to understand the benefits of a club lifestyle, and we have to make sure club membership remains aspirational.

3)Water.

4)Golf members, who pay the highest dues and initiation costs, dropping down to sports or social memberships.

5)Reluctance to change. The next generation of members will view their club differently. Many clubs will have to reinvent themselves and make large investments in capital projects, to attract new members.

6)Lack of leadership. We need to mentor, promote and

celebrate the next generation of leaders and overcome a lack of interest in the golf profession.

7)Governance. The mentality of boards that “what was right for them is still right now.” Club governance and policy changes will be important over the next 10 years.

8)Listening to the 10 percent. Boards and staff can’t just listen to – and make changes to appease – the vocal 10 percent.

9)Board micromanaging. The board should set strategy and policy, and let the staff have the freedom to run day-to-day operations, while maintaining accountability.

10)A lack of urgency. Club leadership must connect with members every day. Positive experiences bring members back, and encourage them to invite friends to join, too.

CLUB FACTS & FIGURES

Funding a Fitness Facility at Your Club

The landscape of the club industry continues to change. The economy, changing demographics, and other factors have taken their toll in recent years.

Today’s successful club offers more than just a club…it offers a lifestyle.

Clubs have evolved from the traditional model in an effort to attract the new generation of member. Along with more family-oriented environments and relaxed dress codes, one of the ways clubs have tried to deliver that desired lifestyle and attract those members is to add or expand on their wellness/fitness facilities.

Let’s be clear. These projects are not small in nature. It usually takes a club a few times to get it right. The club cannot simply add a few new treadmills or transition space into a small workout facility. We are talking about large additions to club facilities or major renovations to existing facilities, frequently costing millions of dollars. This includes state-of-the-art fitness equipment, personal trainers and wellness and nutrition classes that rival the best gyms.

Projects like these require a significant amount of planning. The club needs to decide on its vision of the facility and what it is trying to accomplish. It needs to determine what costs are required to execute the project and how to sell it to the membership. Part of this process is deciding how it should be funded. With stagnate memberships in many clubs and revenue per member below the peak of about 10 years ago, the answer is not simple.

Few, except the largest and most successful, clubs have the cash on hand or in capital reserves to fund a project of the size we are seeing. Thus, most clubs use a combination of debt, initiation fees, assessments and income generated from operations. In fact, more than 90 percent of clubs use at least some debt in funding capital improvements.

Initiation fees: Some clubs will pledge initiation fees to fund capital improvements. In fact, an estimated 65 percent of clubs have a policy that isolates initiation fees for capital improvements. However, not all clubs with that policy actually follow it. Even when a club pledges a portion of its initiation fees to fund a major project like a new fitness facility, seldom is it the sole method of paying the outstanding debt. In addition, other capital improvements may be required during the same period.

Surplus from operations: When generated, a club can designate a portion of its operating surplus to fund the fitness facility. While the past six years has shown a consistent surplus, amounts available for debt service are generally not the sole source of funds for a large project, even when combined with any surplus initiation fees that may be available.

Capital dues/assessments: One frequently used way to fund a club’s fitness facility is through capital dues or assessments. There are a variety of creative ways these dues or assessments can be structured.

• They can be as simple as an additional monthly amount that is designated to pay for capital projects, both current and future with no end date.

• There can be a calculated special assessment, based upon the total cost of the project and the membership. For instance, a 600-member club is building a $3 million fitness facility, so the total cost of the project is $5,000 per member ($3,000,000/600 members). From there, the creativity can take over.

>The club can give the member the option to pay the amount up front. The up-front assessment can be refundable, partially refundable, or non-refundable.

>The club can also calculate a monthly assessment to fund the loan based upon the loan amount, interest rate and amortization period of the loan. Usually a monthly assessment of this nature is nonrefundable, however.

>The club may also include certain incentives to members for bringing in new members. The incentive may take the form of elimination of the monthly assessment for a number of months, or a credit of a portion of the assessment. The incentive may be a certain dollar amount, say $500, applied to the member’s account to be used for anything but dues or the assessment.

>The club may even make it possible for a member to be exempt from the assessment if they bring in a certain number of members within a specified period.

TENNIS COMMITTEE

BRETT C. SCHWARTZ

Brett C. Schwartz is a USPTA Master Professional and the director of tennis at the New Orleans Lawn Tennis Club. He can be reached at (504) 899-1574 or via email: bcschwartz7@yahoo.com

Choosing Tennis Programming that Works for Your

Tennis programming can be tricky. It ultimately boils down to the vision of the board, the needs of the club and the facility parameters.

The key is taking all of these considerations into account and creating a program that works for your club.

The board members through their tennis committee will give the director of tennis a general idea of what their goals are for the tennis program. It’s the job of the director of tennis to figure out how they can make that vision work within the club culture.

A good director of tennis will gain a quick sense of what will work for your club by assessing the membership activities within the tennis program and programming accordingly.

Here are three examples of different clubs with different programming models that accomplish the wishes of the board and the tennis committee.

Club A is a country club featuring golf which also has a small tennis facility. The club wanted to bring value to its membership through tennis activity and increase the number of dues paying members. The club hired a director of tennis who saw an opportunity in the area of women’s tennis programming, specifically USTA League.

He focused most of his efforts in the area of programming for women – clinics, play days with other clubs, mixers and USTA League. Within two years memberships increased by 50 specifically because of ladies wanting to join the club to participate in the tennis program.

One caveat here was non-members were allowed to participate until the program became so popular, it was limited to members. Thus, the non-members had to join the club if they wanted to continue. Now, in addition to using their own courts on league days, the club rented courts at a public facility because their facility could no longer service the level of tennis activity. In addition, the model caught on with the men at the club and a night men’s program, as well as increased fitness activity, was born.

Club B is a country club featuring golf with a tennis program lacking activity. The club wanted to simply create

more activity to bring value to their membership. A director of tennis who was strong in tennis programming, was hired.

He offered programming in all areas – tournaments, mixers, special events, men’s night out, ladies’ day, etc. Most clubs offer most of these activities. However, he offered the activities much more frequently and timed them correctly to make them successful. The program accomplished the original goal of bringing value to the membership and also dramatically increased the sales in the pro shop.

Club C is a tennis club with plenty of tennis activity and a full membership with a waiting list. The board wanted a comprehensive junior program with the use of only three teaching courts and with events that didn’t conflict with court availability for the members.

A director of tennis who was strong in the junior development area who understood the court limitations, was hired. The director of tennis added junior programming in the evening, as well as after school. The program featured junior clinics and lessons from 3:30-8 p.m. three days a week and the program grew to 130 children.

In addition, special events were not run regularly, but rather at slack times so as not to infringe on the court time of the members. As a by-product, pro shop sales increased by 67 percent. So, I ask, what is the correct programming model that will work for your club? As you can see by these examples, there are different ways to make your tennis program successful. By assessing the board’s wishes, the preferences of the membership and the limitations or possibilities of your tennis facility, your director of tennis can craft a program that will work for your club. BR

GREEN COMMITTEE

Bad Guy Gasses - Part II

DAVE DOHERTY

Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil basedgreens. He can be reached at (913) 706-6635 or via e-mail: daveistrc@hotmail.com Web page: www.istrc.com

Bad guy gasses remain the second leading cause of green failure, and it’s still pretty much ignored when it comes to greens failing.

Bad guy gasses, which normally come from our drain tiles and or moisture barriers are also a leading cause of green stress, especially in low and high areas of greens. In the last few years while addressing boards, greens committees and even a few city councils on the subject pf whether or not they need to rebuild their greens, we have identified the cause of the stressed or failed turf, and it’s pretty easy to outline to the powers-to-be just exactly what their options are.

It still amazes me how many clubs rebuild greens to the tune of a million dollars or more and they don’t even know why the old greens stressed or failed. The first step before spending copious amounts of monies on rebuilding or regrassing our greens is to find out why, based on science, there was a problem with the existing or older greens.

Over and over I hear the words, “Well, they just got old.” In today’s world this lack of knowledge is unacceptable, as science has taken us to a place where most problems are now identifiable.

A few years ago a superintendent in southwest Florida experienced a problem with a specific green for a number of years. He told me that he had talked to every expert he could find and that there were a lot of theories and suggestions on what to do but nothing worked.

Everyone agreed that the only solution was to rebuild the green in question. The board of directors allocated in excess of $50,000 to remove the old green and to build a new one.

The superintendent, whom I know know to be one of the best superintendents in the country, took tremendous pride in his abilities and knowledge and wasn’t so sure that rebuilding was the ultimate answer.

He felt that whatever was causing the failed area on the existing green could very possibly resurface and cause the same problem on a new green.

Looking at the green I saw that a tile draining into a water hazard was creating the problem. As explained in Part I of this series, I had encountered this same situation in Nevada a few years earlier.

The idea of water sitting in this drain tile, becoming anaerobic and producing bad guy gasses that migrated up into our air pores where the roots of our plants

had their oxygen supply made sense to the superintendent. We proceeded to take the necessary steps to correct the problem, which in this case was to cut off the part of the drain tile that was under water and to install a four-way intersection (vent) to make sure that the problem did not reoccur. Within two weeks this green did a complete turn around and became healthy.

Four years later and this green continues to be one of the healthiest greens on the course. Because of a superintendent who had faith in himself and knew there had to be an answer somewhere, the course saved over $50,000 and had no loss of rounds because of construction.

Millions and millions of dollars are spent each year on rebuilding greens when it is not necessary. It is time we started using science to give us some answers. BR

David S. Downing II, CGCS is SE Agronomist and past president of GCSAA. He can be reached at: office: 843-365-8738 or cell: 843-241-7250 or via email: Dave.d@golfmsolutions.com

Many of us grew who up with the Fram oil filter commercial remember the tag line of, “You can pay me now…. Or you can pay me later.”

The inference? An $8.00 filter is cheaper than a thousands of dollars engine rebuild.

There are often the phone calls that a course is in the pay me later stage of a turfgrass crisis. The cause usually has one thing in common - the preventative maintenance not being done properly. Whether it’s too much watering, too much fertilizer, not enough sunlight, too much traffic, wrong aerification programs, not enough topdressings, not enough verticutting, mowers set too low, scalping occurs because of these not being done, followed by severe weather, combined with too hot/too cold; and you have a crisis.

You Can Pay Me Now Or You Can Pay Me Later

sometimes is because owners, managers, committees or boards want to minimize player disruption while having the turf be green and lush.

This often starts as a short-term philosophy, but when there are no negative impacts the first year it becomes the new normal. In the meantime, plants are being overfed, overwatered, organic layers build, root systems shrink and when there is a stretch of tough weather the plants are weakened and collapse.

I often try to compare what happens in turf and relate it to our bodies. If someone like me, who’s overweight and doesn’t work out on a regular basis, is sent to boot camp I’ll probably struggle and collapse when put through the drill.

Compare this to Steve in our company who runs routinely and is not overweight has the best chance of surviving the boot camp. He may struggle but he will survive.

Why

do superintendents not do all the right things to grow the healthiest plants possible? In our experience it sometimes is because owners, managers, committees or boards want to minimize player disruption while having the turf be green and lush. This often starts as a short-term philosophy, but when there are no negative impacts the first year it becomes the new normal.

To be clear, winter kill of bermudagrass can occur even if all the right things are done. Bentgrass can suffer if there is the right combination of heat and humidity. But even then, the turf areas that struggle are generally shaded or high traffic areas.

We also know there are courses that never seem to have the disasters. Why is that? The courses that never seem to have winter kill or summer kill are where the club is committed to doing all the right agronomic practices. They also are allowing the superintendent to make the right decisions to grow the healthiest turf possible and when stress comes the turf can survive.

They also give the superintendent the latitude to make changes to height of cut, control traffic, etc. to help reduce the risk when the extreme weather occurs.

Why do superintendents not do all the right things to grow the healthiest plants possible? In our experience it

This is what happens with turf. When we condition the grass by doing all the right agronomic and operational processes the turf can survive the extremes of weather.

We are starting to hear of courses in the Carolinas having winterkill on their ultradwarf bermudagrass greens. This was probably the coldest winter we’ve had since 1994 before ultradwarfs were introduced into the marketplace.

There have been some spots of freezing weather and some issues, but this year seems to be widespread. In 1994 winterkill impacted Tifdwarf greens, and 419 fairways, tees and roughs. The weather that year was cold in December with single digit night time temps, followed in January with

GREEN COMMITTEE |107

PERSONAL DEVELOPMENT

Accountability

New Business Buzzword?

RITA B. CRAIG

Rita B. Craig, president of Top Tier Leadership, is a leadership consultant, trainer and keynote speaker. She can be reached at (561) 775-3396. www. TopTierLeadership.com

For some business leaders, the term accountability describes an important management tool, one they swear by. For others, it’s mainly a buzzword, another important-sounding word for timetested strategies.

Take your pick. But also take a look at managers who believe a culture of accountability goes a long way toward helping them reach their organizational goals. They contend it’s a strategy that inspires people to work smarter and more successfully. And isn’t successful management –by any name – every executive’s objective?

Building a culture of accountability isn’t rocket science. But to be successful, it does require a basic ability that some people find difficult: Being specific.

It means being specific about your goal, specific about how you expect employees to achieve it, specific about how long it should take – definite deadlines – and specific about the language you use. To prevent any miscommunication, it’s wise to consider regular coaching to ensure that what you say is what they hear– and act on.

Providing feedback is also beneficial. Many employees put regular feedback at the top of their list for a satisfying office environment. In return for their more diligent work habits, indicate that you will be accountable to them, that the enterprise is a two-way street, that you will take responsibility for the results.

Creating a high-performance culture with a focused workforce should be at the top of your list. As most managers know but sometimes forget, building a culture starts at the top – setting the appropriate example.

And keep mind that marshalling everyone’s collaboration doesn’t have to be done in the usually-accepted ways. One creative executive decided to try a different route to accountability. He had read a Business Insider article in which famous people were asked what they considered success in their lives. He was moved by their comments and shared them with his employees, suggesting they ponder how they would define success and how they might work toward it in their lives.

In the introduction to the article, an editor of the online newspaper noted that they published a lot of articles about

success, yet while Merriam-Webster defined it as “getting or achieving wealth, respect or fame”, that didn’t feel complete. What, he wondered, would thoughtful entrepreneurs, writers and inventors have to say, and might it inspire others? Here’s a sampling from the article:

• John Wooden, with 620 victories and 10 national titles, was the winningest coach in college basketball history. His definition of success, he said, was more about competing with yourself than the other guy. “Success is peace of mind,” he said, “which is a direct result of self-satisfaction in knowing you did your best.”

• Arianna Huffington, a founder of HuffPost, said that while people tend to think of success in terms of money and power, there was a third measure: “To live the lives we truly want and deserve, based on well-being, wisdom, wonder and giving.”

• Richard Branson is worth some $5 billion, but the Virgin founder equates success with being immersed in your work. “The more you’re actively and practically engaged, the more successful you will feel.”

• Deepak Chopra, physician, author and spiritual teacher, says, “Success in life could be defined as the continued expansion of happiness and the progressive realization of worthy goals.”

• Maya Angelou, the late author and poet laureate, believed it’s about enjoying your work. “Success is liking yourself, liking what you do, and liking how you do it.”

• Zappos CEO Tony Hsieh, in “Delivering Happiness,” his memoir about building Zappos, wrote: “Your personal core values define who you are, and a company’s core values ultimately define the company’s character and brand. For individuals, character is destiny. For organizations, Culture is destiny.”

The executive was pleased to see that his employees considered it a mark of respect that the boss would want them to ponder success in their own lives and it stimulated a thoughtful discussion. He also agreed with Tony Hsieh that culture is destiny and had decided that instilling a culture of accountability would be his own path to success. BR

HOUSE COMMITTEE

TODD DUFEK

Todd Dufek is the president of the Locker Room Managers Association (named the “2009 Association of the Year” by BoardRoom) with 400 - 500 members from 200-member clubs nationwide. For a free 6-month membership in the LRMA, contact at tmdufek@cox.net. Todd is the locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona.

Theft from Locker Rooms at a Country Club?

Unfortunately, I’m dead serious. I became acutely aware of the problem when, as president of the Locker Room Managers Association I asked a question of more than 200 locker room managers at golf and country clubs across the U.S.

Several of them said theft does occur in their locker rooms, and with regularity.

“Everything from razor blades to robes gets stolen,” said one manager. The rest of the responses were similar and led to this conclusion: theft from locker rooms at golf and country clubs is costing the industry thousands, if not hundreds of thousands of dollars annually.

I’ve also asked members what they do to prevent amenities from getting stolen. They shared several preventative strategies, and are as follows:

• Use inexpensive brands of products so that when they are stolen, they cost less to replace (or use off brands during the off season for the same reason).

• Provide travel size samples of most amenities in the locker room bathrooms so that members and guests will take those instead of normal size products

• Remove caps from shaving cream, deodorants and especially expensive perfumes and colognes.

• Put shoe labels with the club’s logo and address with men’s/women’s locker room or property of DCCC, for example, on the back of expensive colognes and perfumes.

• Keep high-end products like cologne/perfume locked up and only give them to members and guests upon request.

• Keep drugs (Tylenol, Advil, Aleve, Bayer, etc.) locked up, give them out only upon request or keep them on the shoe room counter where staff is present throughout the day, and lock them up at night

Of course, managers and their staffs need to prevent members’ personal belongings from getting stolen too. It is important to remember that if your club hosts outside events like weddings and golf tournaments to make members aware of that them, and that the staff will be locking all the lockers as a precaution. It is also a good idea to have cameras installed at the entrance to your fitness and locker rooms that allow video playback. If a break-in does occur, it’s simply a matter of determining approximately when it happened and pulling up the footage of the perpetrators.

Finally, a warning: don’t be naive and think that theft will never happen at a club like yours. Two prestigious clubs I’ve heard about had their bag rooms broken into not once, but twice. The thieves took the most expensive drivers and putters. And these incidents occurred despite the use of the latest alarms and cameras. BR

JOHN EMBREE

John Embree is CEO at the United States Professional Tennis Association and can be reached via email: john.embree@uspta.org.

Those of you who have a comprehensive golf program at your club or facility are undoubtedly familiar with the Titleist Performance Institute (TPI) in Oceanside, CA.

Started in 2003 by Dr. Greg Rose and funded initially by Wally Uhlein at Acushnet, TPI was created to help fitness providers, medical practitioners and golf professionals assess athletes to determine both mechanical deficiencies or technical faults as well as physical ailments in order to improve their games and stay fit so they can keep playing.

Right now, there are approximately 21,000 professionals who have been certified by TPI around the world.

TPI is the gold standard in the golf industry for providing education to doctors, therapists, fitness instructors and golf teachers about how to keep their respective customers on the course and improving their swings.

Knowing the solid reputation that TPI has within golf and recognizing that tennis does not have anything similar, we at the United States Professional Tennis Association saw an opportunity to create a certification program to assist the medical, fitness and tennis teaching professionals about what typically ails frequent tennis players and what can be done to keep them actively playing.

About two years ago, USPTA leaders met at the TPI facility near San Diego to explore the prospect of introducing TPI to the tennis community. Since that initial meeting, the TPI staff has evaluated the potential for such a program and has recruited a variety of leading tennis teachers to help understand our sport, become familiar with tennis terminology and do a deep dive into the technical aspects of each stroke.

After much hard work, we have come to the point where this program will be launched to the tennis community at the first certification session to be held at the new USPTA headquarters in Lake Nona, FL scheduled on June 22 and 23.

We had to consider the branding of this new concept knowing that the golf brand, Titleist Performance Institute, wouldn’t resonate in the tennis marketplace. Thus, RacquetFit describes exactly what we are trying to do for tennis players: keep consumers fit and playing tennis at a higher level.

However, this program can apply for athletes who participate in all racquet sports, including squash, platform tennis, Padel, Pop Tennis, even pickleball since many of the movements and strokes are much the same. With the success of TPI, other sport organizations have realized that the concepts that TPI has created can also be applied to their sports. The Mexican Soccer Federation, USSSA and USA Lacrosse are all now engaged with TPI to create a program for their athletes just as we are in tennis. Nonetheless, I would like to think that the USPTA is leading the

TENNIS COMMITTEE

TPI for Tennis

parade in expanding TPI’s athlete management system and exercise protocol.

With fitness and wellness becoming so vital to the club environment today and with the heavy emphasis consumers are placing on their own well-being, it’s a natural for the USPTA to pioneer this concept with our tennis teaching professionals. After the initial certification course in June, there will be five additional offerings around the country during the back half of the year.

When a medical or fitness professional completes the course, they will become an affiliated member of the USPTA for one year and have access to many of the same benefits that our certified members in good standing receive.

And they will have immediate credibility with their customer base because they will have been trained on tennis specific exercises to help their patients with their performance. Naturally, existing USPTA professionals are encouraged to become RacquetFit certified and will be offered the certification at a discounted level.

This is truly an exciting development for the USPTA. As the leader in tennis education, we see RacquetFit as another example of the cutting-edge information that we offer to help support our overall mission statement: “To elevate the standards of tennis teaching professionals and coaches.”

Please contact me if you should have any questions about RacquetFit. Thanks for supporting the tennis professionals that you have on staff. And I ask one final question: Is your tennis professional USPTA certified? BR

GOLF COMMITTEE

ADDISON C. CRAIG

Addison C. Craig, PGA, a Millennial, is the owner of ADDGOLF LLC, a golf instruction business. Addison works as a golf professional at La Gorce Country Club at Miami Beach, FL and as a golf professional at The Bridge Golf Club at Bridgehampton, NY. He can be reached via email: Addison@Addgolf.com

Get Millennials on Your Radar

The Millennial generation is one that is very unique. Compared to other generations, we millennials grew up with computers in our cradles.

This has resulted in us growing up with the internet and social media networks and feeling very comfortable in the information economy. We like data and we like being connected.

Now with Millennials being the biggest population group in the U.S., it’s very important to understand what makes us tick so you can make the changes that will result in your ability to attract and retain Millennial golfers.

In my opinion, Millennials want to be a part of a dynamic culture. They value tradition but are not glued to it. They want to have an identity and like to be listened to and know they can make a difference. In other words, they like to drive change and want their place to be buzzing!

ognize the whole person? If not, you may want to revise them.

When it comes to creating the kind of culture to attract Millennials, leaders need to move from a command and control style to a collaborative approach.

Millennials like to be asked for input. Because we grew up in a time with lots of technology, our solutions may look different.

Working at a club is a very fast-paced, high energy work environment. It’s easy to forget to stop and give someone a pat on the back. According to research, employees need some form of recognition every seven days.

Put recognition on your calendar and don’t forget to give positive feedback. It goes a long way in building engagement.

Every workplace has an unwritten set of beliefs. You can usually tell by the actions of the employees especially lead-

Millennials thrive on feedback so make sure you give them feedback on a regular basis so that they stay engaged in the process. Chances are that they will recommend using short, high-impact videos and an active presence on social media i.e. Instagram, Facebook and LinkedIn. Millennials crave and expect new content on a regular basis. Is your club utilizing real time videos to share exciting news about what’s happening in your club? If not, do it!

What are some practical action steps you can put in place to engage Millennials? Lots of companies have mentoring programs.

Millennials should be asked to mentor more senior employees to share ideas to create that buzz. The senior employees can help Millennials understand the culture and what it takes to be successful. In terms of mentoring, it’s a two-way street.

Think about your club’s culture. Do you have a clear vision and purpose? Unlike Baby Boomers who lived for work, Millennials have a need for work and life. Check your policies and procedures. Are they flexible and rec-

ership. Be deliberate about identifying your values and make sure they are part of daily work. Some that are important include: honesty, openness, curiosity, creativity and respect.

L.E.K. Consulting, a global firm, in publishing a study on sports, said “Cord-cutting Millennials are increasingly abandoning cable television and traditional sports for online video game tournaments and other e-sports.”

Because Millennials may become more and more disengaged from sports, it is up to clubs to build plans to make sure they are maximizing technology and the

whole experience to draw this generation and the one following. Build fun and interactivity into the activities at your club.

Since Millennials thrive on creativity why not challenge them with a specific task and timeline. As an example, you can ask a team of Millennials to develop a list of 10 ideas to potentially attract more golfers.

Millennials thrive on feedback so make sure you give them feedback on a regular basis so that they stay engaged in the process.

Chances are that they will recommend using short, highimpact videos and an active presence on social media i.e. Instagram, Facebook and LinkedIn.

Millennials crave and expect new content on a regular basis. Is your club utilizing real time videos to share exciting news about what’s happening in your club?

Are you sharing data about what is happening in the industry especially articles related to the new generation of golfers?

If not, do it!

The bottom line is that you want to start making noise to attract Millennial golfers – and Generation Z coming up right after them. Our industry is a small one, so let the change happen and develop fun and cool innovative ideas and opportunities along the way.

This will bring a bigger buzz around the club and your community. BR

TRIBAL MAGIC

Gregg Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com

Creating a Certified Supervisor Program – Part II

The How

DOING “THE HOW”

Doing supervisor certification right requires knowing the what that’s needed and the how of delivering what’s needed effectively and efficiently.

Part one of this series provided a basic outline of the what of supervisor certification. Part II of the certification Journey, deals with the how of teaching what’s needed. Together these two articles provide the foundation for an internally generated loving hands at home, personalized and customized supervisor certification program that’ll develop the gifted, strengthen the club and add joy to the management journey.

Be warned, personalization and customization is required! No one program works for everyone. No one set of standards and processes is universally applicable. Therefore the following supervisor certification template needs to be personalized and customized to be appropriate for a specific club and its team and the needs, wants and expectations of the operation.

Reminder – Gotta have the champions: Every program needs champions to succeed – people who are passionate about the why, the what, the how and the who of the program. Creating and delivering a supervisor certification program takes the commitment of the big cheese, the general manager and their executive team. No enthusiasm from the top, no delivery from below. Find champions who’ll be the preachers, teachers and facilitators for the supervisor certification program.

Issue a Warning – Certification Doesn’t Mean You’re Now a Supervisor: Applicants need to understand that certification means they’re qualified to be a novice supervisor but it doesn’t mean they will immediately become a supervisor. But when the opportunity arises, they will be ready!

Needing – The faculty: The certification program will require teachers who’ll specialize in delivering different parts of the curriculum in an interesting and engaging way. The faculty will include the general manager, the lead trainer, various already certified supervisors and various

members with specialized knowledge in the law, finance, human resources and the like.

Orienting –The faculty: The faculty members need to know the program and their role in delivering certification. For those who are already certified supervisors, this will be a re-hash of what’s already known. For others, it’ll be an orientation to the program and an explanation of their place in the certification journey.

Creating –The workbook: This is the Bible of the program and a detailed syllabus for both attendees and faculty. Created by the faculty it will include all of the must know thematic chapters outlined in Part I with each of these chapters broken down into detailed topics appropriate to that chapter.

Each detailed topic within the chapter will include:

1. An explanation of the topic.

2. Discussion questions.

3. Test question “possibilities”.

4. A “must watch shot by the staff of the staff” threeminute explanatory video for that specific topic.

5. Articles of interest that must be read and discussed.

Publicizing the opportunity – Getting the word out: Once the program’s been developed, management will need to spread the word that the supervisor certification program is open for business. Write it up, hand it out and post it on the staff bulletin board. Have the manager speak to the staff. Have current supervisors discuss the program with their teams. Have a supervisor certification open house for the interested.

Pre-application must watch videos: Before an application is given to the interested, they must watch a couple of loving-hands-at-home-done-by-the-staff pre-application videos to make sure they know what they’re getting into –every supervisor’s job and this department’s supervisor job.

Finding candidates who fit: Many want to wear the supervisor hat but the hat needs to fit. There are two

ways of finding fit. Way one – Employees who satisfy the minimum qualifications – industry experience, club experience, department experience – can request an application for enrollment.

Way two. The management team – supervisors, assistants, GM – can recommend someone for the program. This can be based on factual stuff, i.e. length of service, etc., as well as gut instinct (having observed behavior it’s obvious they have upside potential).

Candidates are approved for participation by the selection committee – the GM, faculty and department supervisors.

Organic education: We learn randomly. We use information randomly. Random is interesting. Most experience and most education takes place randomly in no particular order, and the random experience is usually more fun than the linear.

Other than the how-to-do-student module, every other module in the workbook can be taught in any order since each module standsalone. Teach modules appropriate to that week’s happenings, or have a raffle for this week’s raffle, or be conventional go in order.

Frequency: Once a semester begins, classes should be held several times each week to keep the buzz on. Classes should be brief – 30-40 minutes, and should address a single topic or module.

What day and time: Classroom time should be during a typically slow day at a typically slow time. Once the time has been chosen, consistency is the key.

Where: The program should be delivered in a sacred space to affirm and to dramatize the significance of the program – the board room, the manager’s office, the main dining room during off hours. Once the space is chosen, the key is consistency of location.

The classroom experience: Classes should not exceed 30 minutes, unless the interactive conversation stimulates a longer discussion.

Each class should start with warm-up questions: What’s your question of the day and what’s your story of the week are two good examples, to get the group talking and interacting. The faculty then leads the attendees through the highlighted module focusing on interactive learning.

The oral examination – questions: Before graduation, a panel of faculty sits with the attendee and asks test questions including both workbook and hypothetical issues.

The written examination – questions: Before graduation, a written examination is given comprised of questions

generated by the faculty and based on possible questions identified in each module of the workbook.

The practicum examination – observing the doing: Before graduation, one of the faculty members will shadow the attendee for a day to observe their execution of routine supervisor activities (upbrief, teaching, debrief, time card processing, reviews, etc.) and to ask questions that a supervisor might encounter during a normal day.

The graduation ceremony: The graduation is a big deal and should be a public affirmation of the certification journey. The certification should be presented by the president and general manager at an all-staff meeting. The newly certified should be photographed, an article written and copies emailed to the membership, published in the newsletter, posted in the staff dining room and sent to the graduate’s home.

Rewarded – The money and the badge: The certified will immediately receive a raise whether or not they’re actually assigned as a supervisor. The certified will be given a specially colored nametag to identify them as a certified supervisor.

Ongoing stimulation and re-certification: A series of post-graduate stimulants will be needed, graduates will be assigned a mentor and given a mentee and a structured mentor-mentee program will be developed; advanced management / leadership classes in the internal university will be offered; in-house other department teaching opportunities will be assigned and presentation at all-staff meetings will be required.

As well, involvement in the development of new training videos will be provided; participation in the further development of the workbook and certification program will be required, and periodic re-testing and re-certification will be given.

Debriefing the program – modifying and revising: After every semester of the program, the faculty and graduates will meet and debrief and modify the certification program.

Start certifying: Creating a personalized, customized certified supervisor program ain’t easy. A champion’s needed. Committed faculty is needed. Hungry upwardly mobile staff is needed. Discipline’s needed both to teach and to learn.

But the rewards are huge. Stimulating for the faculty. Stimulating for the upwardly mobile. Powerfully productive for the club. BR

Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.

Boca West’s Capital Investment Generates A 25 Percent Boost in Sales Volume

It’s no wonder many club industry consultants use Boca West Country Club as a model. It appears they club’s taking steps worth emulating. Located in Boca Raton, Florida, it’s the No.1 private residential club in the country.

The club’s business volume is up 25 percent through the first six months of this season, because of a substantial capital investment in a 153,000 square foot clubhouse, which opened to acclaim in March 2017. So far, the new facilities have been worth every penny.

A thought and industry leader, Boca West set out to break the traditional mold when conceptualizing the new facility, which is one of three clubhouses in this luxury residential community made up of 55 villages, built across 1,400 acres. The clubhouse features luxury retail, fine and casual dining and entertainment all under one roof.

“We’ve been closely following the experiences being offered at luxury hotels and resorts across the country. We know that our members are frequent travelers who are accustomed to unique luxury experiences in major cities and vacation destinations,” Matt Linderman, Boca West’s general manager, told us.

Boca West sought to match those experiences in collaboration with Image Design of Atlanta, a design firm the club has worked with for a number of years. The new clubhouse offerings, especially their dining options, have borrowed elements from some of America’s leading hospitality centers.

“We took our interior design team on a whirlwind visit to 70 restaurants in just three days in Las Vegas,” Linderman offered. “We curated the most appealing design and décor elements and then we brought those home to Boca Raton. The design team incorporated our favorite features into the new clubhouse.”

During the design phase, Linderman and his team envisioned a distinctive signature restaurant as the clubhouse centerpiece that would appeal to their sophisticated members. Since the club serves more than 550,000 meals each year, the form and function needed to blend seamlessly together. To brainstorm, they visited the most celebrated steakhouses in New York, Chicago, Atlanta and in several cities across California, with the intent of designing a restaurant on par with the steakhouses their members are frequenting in their home cities.

Their significant research resulted in a 200-seat restaurant and 100-seat piano lounge called Prime Cut. “It’s truly designed with the Rat Pack in mind,” said Linderman. The central bar anchors the dining room and lounge and features an expansive wine cellar that houses 1,800 unique wine labels as its backdrop. The bar counter is crafted

from agate, so the look is dramatic, with ribbons of varying shades of deep blue reflecting the carefully chosen lighting that illuminates the room.

Prime Cut naturally serves USDA Prime beef, but it delights Boca West members with classical presentation, done with a modern twist. Tableside service includes delectable favorites like Dover sole, and flambéed Baked Alaska.

Prime Cut’s Executive Chef Roger Brock has been creating the club’s menus for more than 12 years. The club’s sommelier carefully curated the wine list, making the club’s steakhouse a destination restaurant for residents. Prime Cut lounge features a nightly piano player and vocals, in keeping with the Rat Pack theme.

The central bar is raised in the center of the room, ensuring that every table in Prime Cut is a window seat with views through the dining room’s 18-foot tall, floor-to-ceiling windows. Diners enjoy vistas over the golf course, its lakes and surrounding waterfalls, Zen gardens, and palm trees, all artfully lit after dark within 300 feet of the clubhouse.

Other offerings include Grand Central, the club’s more casual grill room that replaces the traditional greens and plaids with a retro, trueto-life 1950s New York street scene, complete a cobblestone street, fire escapes and fire hydrants.

Members can choose from a full à la carte menu from Nathan’s deli franchise (the meats are flown in daily), a market for quick paninis and salads, a Sicilian-style pizzeria called Josie’s, or a Brooklyn diner that serves eggs and brunch items.

“Our members can determine the pace of play here,” says Linderman, “They can grab a quick bite, or be wined and dined in the Prime Cut dining room. They have almost unlimited options in our new clubhouse.” BR

Red Envelope Program Drives Revenue Increase

In December last year, members of the Lakewood Country Club in Rockville, Maryland received mysterious red envelopes in the mail, with explicit instructions not to break their seal.

The Red Envelope Program was designed to drive traffic to the club’s fine dining venues in the less-trafficked months of January and February. Members were directed to bring their envelopes to the club to dine on any Wednesday or Thursday in the first two months of the New Year, building anticipation as early as December.

The Red Envelope program also proved to be a fun and engaging interaction between employees and members, with plenty of anticipation and prize winning. Servers at the club were required to open the members’ Red Envelopes tableside (otherwise the red envelopes were null and void) to reveal the member’s prize.

“The program proved successful, driving a 15 percent increase in member dining visits and revenue over the previous year. More importantly, the excitement level was very high,” said David Pendy, the club’s general manager and COO.

Red Envelope prizes included dinner on the house, as well as complimentary appetizers, cocktails, bottles of wine, a free golf cart rental and discounts on guest golf rounds. Members holding a “Sorry, Try Again” envelope were given another chance to win. All prizes were randomly sorted and sent to the membership, with a total of 480 winning Red Envelopes, plus one spectacular grand prize.

One lucky winner enjoyed two complimentary tickets to see The Mentalist, one of two showcase events held at the club annually. Both the club’s professional comedy event in January and The Mentalist event in March feature professional entertainment. They are high ticket items that quickly sell out and are therefore highly desirable to the club’s membership.

“We need to be innovative and use out-of-the-box thinking. We found this idea on a paid membership service we often use called RestaurantOwner.com. It’s a wonderful, web-based educational resource that shares the planning tools, graphics and collateral needed to implement a variety of innovative ideas to engage members,” said Pendy. BR

Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.

Fireside Chat Series Engages Members And Employees

Although it’s summertime, the employees at Philadelphia Country Club are enjoying fireside chats with select members, connecting with and engaging members in a new way.

The Fireside Chat program provides vital staff training opportunities in an open forum, question and answer format.

The first conversation – with the CEO of a national health care provider – focused on communication, leadership philosophy, mentorship and work-life balance. “Our staff was able to hear about some of the behind-the-scenes negotiating and work that goes into the healthcare industry. It was a very timely topic to be discussing healthcare, so our employees really enjoyed that part,” said Brian Gardner, the club’s membership director.

A casual conversation was facilitated by Gardner, and the staff members were able to learn more about a member they might not have previously known. “Our staffers really appreciated seeing a different side of our club member. We always see them in one particular setting here at the club. It was nice getting to learn more about our member’s successful career, as an expert in their field,” added Gardner.

The club’s upcoming fireside chat is with a club member who serves as vice president of human resources for a Fortune 250 company. “We are excited to learn about the human resources function at a large company and hopefully gain some insight on how to improve our own club,” said Gardner.

Gardner in explaining the logistics and how he goes about choosing members to take part said, “As the membership director, I’ve been selective in asking our membership to provide these learning opportunities with the staff.

“I try to get ideas from our staff on what they would like to learn more about and find an expert in that field. I contact people well in advance to get on the member’s calendar and to discuss possible questions. I also ask the member for feedback on what they might want out of the chat. When we work together it helps create a relaxed atmosphere,” added Gardner.

For clubs looking to implement a similar program, Gardner advises, “Be sure to select members who can provide advice or ideas that the staff will benefit from. Making the experience as natural as possible makes it more enjoyable for the staff members who attend,” said Gardner.

The Fireside Chat series is hosted in one of the club’s event spaces, for as many as 32 people. The club’s membership director has organized the program and it’s promoted to staff by the employee relations committee. While attendance for staff is not mandatory, Gardner notes, “We are encouraging our executive management team to bring a key staff memeber from their department to our next fireside chat.” BR

Brian Gardner, Philadelphia Country Club’s membership director (pictured right), speaking with a member of the club during a Fireside Chat

INNOVATIVE

Culinary Pride Designed to Educate And Innovate Year Round

As temperatures rise, flowers bloom and the summer season kicks off, many clubs in the northern parts of the country are gearing up for their long-anticipated busy season.

Golf clubs, in particular, have spent the last several months striving to keep members engaged with indoor programming while their links and greens remained covered with snow. Down south, in states like Florida, seasonal club staff brought on for the high season are looking for summer jobs, as many club members are departing for their homes in the northeast and Canada.

For the culinary team at Polo Club in Boca Raton, FL, the hard work is just beginning. Their slower season is a time for staff education, menu innovation and testing, and off-season special events designed to engage, delight and even reward their year-round residential members.

After pulling off the impossible task of producing thousands of meals daily, the slower season is a creative period where the culinary team dreams up new dining concepts.

“It is important to maintain your momentum and elevate the member experience even as we wind down,” says the Polo Club’s Executive Chef, Edward Leonard, who spoke to us recently about his club’s Culinary Pride program.

“We decided to take a different approach for the off-season: to innovate, to offer more and reward those members who call the club their home year-round,” added Leonard. To that end, the club is keeping its Winner’s Circle restaurant open. While it typically serves a selection of tapas inspired by different countries around the world, this summer, Winner’s Circle will feature an enhanced new pub menu, as well as a sushi menu loaded with raw fish favorites.

The club plans to open other venues in rotation to provide summertime residents with a change of scenery. Steeplechase, the club’s upscale restaurant that serves American cuisine with a focus on fresh seafood, will instead feature prix fixe menus, chophouse fare and comfort food items through the summer months. The American Bistro will reopen in June serving all-American comfort food, as well as dishes with more global influences.

Other summer highlights include Street Food Sundays served poolside at the Barefoot Café, a pop-up restaurant series in the club’s Crown Room that features alternating menus of Spanish tapas, hand-carved Peking duck and Asian flavors and a traditional Trattoria menu with a wine pairing option.

A chef’s table series will feature an exclusive five-course wine dinner for just 24 guests, served inside the club’s Laurels Kitchen, so guests can learn how their dishes are prepared.

Another key component of the Culinary Pride program is team education. Executive Chef Edward Leonard takes advantage of the slower summer season, using it as a time for training his culinary staffers at Polo Club. The culinary team receives training decks and instructions on how to make specialty items. From global cuisines to American favorites to pastry, the young culinarians are subjected to a

rigorous summer training program that focuses on the history of the dishes they are producing, furthering their understanding of food as a cultural product.

All the club’s cooks and chefs receive cross-training opportunities in the club’s many venues as well, bringing them new knowledge, skill sets, and a chance for career growth. Each chef holds a nightly pre-service meeting with their culinary and front of house teams to learn about and taste the daily specials and review menu changes.

Cooks are encouraged to sample the sauces and dishes daily to ensure consistency of quality and flavor. “We teach the entire team that every job they do is a self-portrait, so we tell them to autograph their work with excellence,” offered Chef Leonard.

Leonard’s artisanal approach and his creations featured on Facebook have expanded his reputation. Chefs from area clubs as far away as Vero Beach and Orlando come to study with him and his team to find out firsthand what Polo Club’s Culinary Pride program is all about.

Both young apprentice cooks and more mature culinarians are keen for an opportunity to work at Polo Club, as its reputation for being a premier food and beverage venue continues to grow.

“Passion for culinary excellence is our motto and direction and we do our best to deliver a member experience like no other,” enthused Leonard. BR

Meghan Thibault is a Honolulu-based freelance writer and full-time content contributor at HawaiiLife.com.

Convenient Tablet Surveys Tabulate Member Satisfaction

Woodfield Country Club in Boca Raton, Florida has been ensuring member satisfaction with the introduction of short, innovative surveys that provide instant member feedback.

The handy tablet-based surveys have replaced the annual paper variety the club had previously been using. The new surveys have the added advantage of tabulating key data points throughout the year to identify trends and determine key metrics of member satisfaction.

The club is now able to provide more frequent feedback opportunities, delivered to members on sleek, modern tablets, using a service called HUMM®, which includes both a specialized software and the tablets as part of a contract.

“We began implementing the surveys about a year ago in our dining and catering outlets. We incorporated the surveys into golf and tennis six months later, and most recently, we’ve introduced the surveys in the spa and salon,” said Brooke Dinsmoor, Woodfield’s director of communications.

The brief, tablet-based surveys consist of seven to 10 questions and are entirely optional to members. With approximately 1,200 homes in their residential community, the club has collected more than 20,000 surveys in its first year of operating this program.

The surveys are designed so that the club can pinpoint training opportunities and remedy issues immediately following a member’s experience. The volume of data produced has been tabulated so the club can measure progress over time, including employee performance.

The survey questions are specific, often designed to measure training standards already in place. For example, the spa survey might ask members how they were greeted, or if they were offered a beverage after their spa treatment. “In this way, the club can pinpoint and drill down, tapping into amazing intel to what the member experience is like,” said Dinsmoor.

After a member hosts a privately-catered event, they can rate the entire experience, from their first inquiry, through the planning phases, and finally the implementation of their event. For golf and tennis, the surveys, delivered online are sent out monthly. Members are asked to rate conditions on the course or the court, as well as the pace of play and the product selection in the pro shop.

“It’s giving us amazing results,” says Dinsmoor. “We are collecting data, but there’s also meaning attached to it. We’re able to see the reasons why perhaps a member may have had a negative experience and we learn how we can quickly remedy any issues. “We can call members within a day to ask, ‘How can we make it better for you?’ and the surveys also help our team to practice aspects of service.”

The surveys have also provided invaluable positive feedback and encouragement for employees. For example, the club posts the positive comments and scores for service providers in the spa and salon. Fellow employees can see their results and those of their colleagues and they get immediate gratification, instead of waiting until the end of the year for the annual survey results. The club plans to start incorporating the survey results into their annual employee performance reviews.

For both employees and members, Dinsmoor said, “It’s a bit like weight loss. If you begin to see results, it’s easier to stick with it because you see that it’s working.”

Members also appreciate that the club is making changes in response to their feedback. “After a year, we still haven’t seen any survey fatigue. Members are seeing results and the value of the program. It’s really taught them that they are a big part of the overall member experience,” concluded Dinsmoor. BR

Conversely, if the primary consideration is tax revenue for the community, it is likely they will maintain assessments based on highest and best use.

Another alternative is for the club and taxing authority to either agree to down-zoning and restricting the use, in which case the assessment would have to be based on the restricted use or to place a restrictive covenant or conservation easement on the property which would accomplish the same, but involves a very expensive, arduous and permanent process.

How should golf properties be taxed? That depends on your perspective. If a community wishes to preserve open space and recreational opportunities, golf properties will be assessed based on continued use as golf courses. If they need current tax revenues, they’ll continue with highest and best use. The debate rages on. BR

from Membership Musings |84

immediately because the storeowner sold him the benefits – not the necklace.

There’s a postscript to this story. A few days after the sale, the owner received a note from the gentleman’s wife. “I only wish you could have seen his face when I gasped and began to cry. When I saw how startled he was, [my husband] told me what you had said that made him buy the necklace, and then we both laughed and laughed and laughed until we had to sit on the floor. Thank you for making this the happiest anniversary any two people have ever had.”

Then she added, “Harry has promised me that he will never again shop at any jewelry store but yours.”

So, check the emotion-rational ratios in your club’s marketing efforts to make sure they are in the right direction.

Your bottom line will thank you. BR

fromFacts & Figures |90

The point here is the structure of the assessment is not limited to any certain way…as long as the math works.

Adding a fitness facility or a major expansion to an existing facility is something every club should consider. For many of your members, working out is a daily part of their life, and chances are they may have a gym membership in addition to their club membership.

Having a worthwhile facility can entice your members to spend more time at the club and attract that new generation of members. BR

Kevin F. Reilly, an attorney and CPA, has been involved in the hospitality area and clubs in particular, for more than 30 years. He is a partner in the firm of PBMares, LLP. Mr. Reilly is located in the Fairfax, VA office. He may be reached at 703 385-8809 or by email at kreilly@pbmares.com.

R Todd Swisher, CPA, CGMA is an assurance partner and leader of the hospitality team. He is located in the Richmond, VA office and may be reached at 804 323-0022 or by email at tswisher@pbmares.com.

from Green Committee |93

low teens for several nights and then again in February there were several nights in the high teens. Each of these cold snaps were followed by mild weather.

This winter had one cold stretch but not three stretches like the winter of 1994. The ultradwarfs are known for their lack of cold tolerance. It’s always recommended purchasing covers for the greens and when night times are going to be in the 20sF, they should be covered.

Because of the lack of low temperatures and turf issues for many previous years, many courses have not purchased the covers. Combine the lack of covers and what we typically see when visiting courses, too much organic matter, and a lack of good roots, a cold snap can damage a lot of turf.

All of the newer varieties of bentgrass are denser and produce more organic matter than varieties like Penncross, PennEagle, PennLinks, Dominant, Seaside, of other varieties released before the mid-90s. With the introduction of the Penn A & G varieties the density has been nearly tripled from Penncross.

This extra organic matter needs to be dealt with from the first mowing by controlling fertilizer applications and a routine program of vertical mowing and topdressing combined with adequate core aerification to remove the organic layer.

Add to this natural density, the use of growth regulators that add to the organic matter build up, combined with the desire to do fewer topdressings, fewer aerifications and the chances for failure increases.

How can you, as a leader in your club, be sure your club is doing the right practices. How do you make sure your accounting staff is doing all the right practices?

You have an audit done by a CPA. So why not have audits done to your agronomy and operations on your largest asset that is the key driver of income and customer satisfaction? BR

At GMS https://www.golfmsolutions.com/golf-course-services/advisory-consulting-services/ we help insure golf courses are receiving valuable information and data we collect with each and every visit we experience. GMS consulting visits are based on individual course needs and help create benchmarks for success (and give an ounce of prevention!).

liabilities end up in the club’s lap,” added Stowell of the Scottsdale, AZ-based firm of Sherman & Howard.

Jeff Hansen, senior vice president, associate general counsel of Troon Golf agrees that “clubs are susceptible to potential liability from many sources.

“For example, there is liability for board members and the club if a member intentionally or negligently causes damages to another, if a member harasses another member or an employee at the club, if the club redesigns the golf course, which causes errant golf shots to damage surrounding homes, or if the club creates a dangerous condition whereby someone becomes injured.”

However, the potential liability not only affects members. It can also affect employees.

“For example, if the club employs the employees, there is potential liability associated with wrongful termination, wage and hour issues, and discrimination and harassment issues.

However, by law, there are some protections afforded private 501(c)(7) private club.

“Many states have enacted statutes that shield board members of non-profit organizations from liability. There is also federal legislation that protects board members from liability as long as the board member was acting within the scope of their responsibilities at the time of the act or omission, the harm was not caused by willful or criminal misconduct, gross negligence, reckless misconduct, or a conscious flagrant indifference to the rights or safety of the person harmed, the harm was not caused by the volunteer’s use of a motor vehicle, vessel, aircraft or other vehicle for which a operator’s license is required,” Hansen explained.

“In most cases, board members at non-profit clubs will be protected as long as any act does not constitute a crime, hate crime, involves a sexual offense, or the act does not violate a federal or state civil rights law.

“For profit board members do not have the same protection that non-profit board members do, as discussed. Most

Board members must be objective, unselfish, responsible, honest, trustworthy and efficient. In a little more detail, non-profit board members have three fundamental areas of legal and fiduciary responsibility which are often referred to as Duty of Care and Duty of Loyalty and Duty of Obedience.

“If the club ignores bylaws and rules and regulations, there is also potential liability,” stressed Hansen. “These are a few possible scenarios in which a private club and/or board has potential risk. It’s so important to make sure the club has proper insurance coverage in place for every conceivable risk and that the board has directors and officers’ insurance to cover the costs of defense and indemnification in the event the board is sued.”

So how are a board member’s fiduciary responsibilities affected by a club’s liabilities, and does this relate to a board member’s roles and responsibilities?

“A private club board member must act in good faith in performing their duties and use the care that a prudent person would use in similar circumstances,” Hansen explained.

“That includes participating in all board meetings and events and having familiarity with the club’s finances. Furthermore, a board member must be knowledgeable about the bylaws and rules and regulations as well as be aware of the club’s finances. Board members must also avoid conflicts with their position as a board member, including avoiding any transactions that would benefit them personally. Each board member must also conduct an overview of club operations to be assured that the club is complying with all laws,” he added.

clubs agree to indemnify board members for their service as a board member. It is very important that proper insurance coverage is procured to cover risks for the club and for the board members,” Hansen outlined.

In amplifying on Tanzer’s hottest issues, there are specific areas of operation within a private club that are cause for liability, including food and beverage, board actions themselves, sexual harassment, the golf operation, rogue board members, the club’s disciplinary actions among others.

“Refund of member initiation fees is a hot litigation issue at the moment,” the Troon executive Hansen outlined.

“After 2008, many private clubs could not attract members given the high initiation fees, therefore the source of funds to pay off members on the resignation list dried up. As a result, resignation lists were long and were not being timely paid.

“Many members sued based upon representations that the resigning member would receive the refunds immediately upon resigning, or clubs would change membership categories and not charge initiation fees and those new members would not be factored in the resignation policy,” he said.

“There have been many recent lawsuits involving resignation lists at private clubs. It is important that clubs comply with the bylaws regarding the resignation procedure and if the club is seeking to amend the bylaws, seek advice from specialized counsel to make sure changes will not create liability risks for the club,” Hansen stressed.

Food and beverage operations are another source of liability, if for example, “a member is over-served with alcohol and subsequently is involved in an accident.

Also, there can be liability to the club associated with the violation of wage and hour laws. There can also be issues with food poisoning in the F& B operation,” he added.

Sexual harassment and discrimination can be a concern and “it’s important to conduct periodic training and establish a zero tolerance for harassment and discrimination of any kind at a club,” Hansen said.

“Rogue members and/or rogue board members can be a source of liability in the event a member/board member violates the law or violates another person’s civil rights, including the rights of employees. Also, if a board member refuses to comply with bylaws and rules and regulations, the club can be held responsible for any damages sustained.

“The club must strictly comply with the bylaws and rules and regulations in imposing discipline against a member. If the club fails to follow bylaws/rules and regulations in handing down discipline to a member, the member will have the ability to file a suit which may result in the payment of money including reimbursement of attorney fees for the party filing suit,” Hansen stressed.

So, what can private club do to minimize their potential exposure. “Best practices can help mitigate risk,“ ex-

plained attorney Stowell. These include: Training, employment law compliance, inspection of the physical plant, insurance and alternative dispute resolution.

“The club should have appropriate insurance coverages and the board should diligently consider and understand its coverages and potential exposure. I often see clubs with inadequate coverage because they are using a club member broker or because they have simply renewed (not updated) their coverages for years,” Stowell added.

“This is a huge mistake. New needed coverages, such as cyber, are complex and the board needs competent advice to ensure the coverage is adequate and fully understood. New and increased risks are impacting underwriting and available coverage, such as for #metoo and similar claims – the board should understand new policy exclusions and limitations so the club is not exposed without coverage.

“Properly crafted provisions for alternative dispute resolution are essential to obtain the benefits of this option,” added Stowell. For example, saying ‘We will arbitrate instead of going to court’ does not give the club the cover it would have from provisions that say where and how and with what limits the arbitration will take place.

“Properly crafted, these terms can vastly limit the scope and cost of arbitration. Importantly, ADR can help maintain confidentiality, which is not available once a party runs to the courthouse and files a complaint,” Stowell concluded.

Hansen agreed “not all actions will make it to court. If there is an agreement between the parties in the dispute and there is a provision for dispute resolution other than filing an action in court, the parties may have an obligation to pursue their claim in mediation, arbitration or some other tribunal,” he said. ➤

In most situations however, club best practices can prevent a liability action.

“‘An ounce of prevention is a pound of cure’ is a fitting statement when dealing with liability claims, “exclaimed the Addison Reserve CEO Michael McCarthy, and that’s what his club works toward.

“Safety training for staff is imperative. Making sure that every employee knows how to safely operate every piece of equipment they will handle, whether it’s a golf cart or a facial machine is critical, not just to avoid liability actions, but to protect the safety and welfare of your members and staff.

“Ongoing harassment and discrimination awareness training should be the standard for all staff. Refresher courses can reinforce the club’s culture of treating everyone with respect,” McCarthy added.

DOCUMENTATION

“Not all accidents are preventable. As with most things in life, reaction to a situation can shape the success or failure of an organization. All staff should be trained on how to respond to an accident by involving management and ensuring speedy arrival of first responders.

damaged on club property. In hindsight, it is very difficult for people to remember the exact circumstances of an accident, especially if they are injured or upset.

“Strategic video camera placement can also shine a light on potential claims. For example, if someone claims the valet damaged their vehicle, we can view the arrival of their car to determine if the damage occurred before or after their visit to the club,” he explained.

FOLLOW UP

“It’s important to remember that not all actions are based on money. There is an emotional component where someone may feel they were treated badly and no one cares, even at the club they consider their home and family,” McCarthy offered.

“Reaching out to a member after an incident to check on their status can go a long way to preserving the member relationship. The club should not admit guilt or agree to any concessions without legal counsel, only concern for the member’s well-being and if there is anything that they need.

INSURANCE

“The club’s insurance package should be carefully reviewed annually for limits and exclusions,” McCarthy rec-

“‘An ounce of prevention is a pound of cure’ is a fitting statement when dealing with liability claims. Safety training for staff is imperative. Making sure that every employee knows how to safely operate every piece of equipment they will handle, whether it’s a golf cart or a facial machine is critical, not just to avoid liability actions, but to protect the safety and welfare of your members and staff. Ongoing harassment and discrimination awareness training should be the standard for all staff. Refresher courses can reinforce the club’s culture of treating everyone with respect.”

Michael McCarthy, Addison Reserve CEO

“Do your employees know how to direct emergency services to the club’s address and to a specific location or building on the club property? “

In answering his own question, McCarthy said, “Addison made it a practice years ago of posting stickers on club telephones with step by step instructions for these types of incidents along with the club address and the security department phone number. The more prepared your staff feels to deal with these situations, the calmer and more level headed they will be in the face of crisis.”

McCarthy added that “the staff at Addison Reserve is also encouraged to take photos if they witness property

ommended. “The board of governors never wants to hear that a claim has been filed but the type of claim is excluded from your policy or has minimal coverage.”

Phil Harvey of Venture Insurance Programs suggested “one of the most interesting aspects of this subject I’ve experienced is the issue of ‘who is liable for an event?’

“The member-owned club has a complex make-up. This being the fact that the equity holders of the club are named insureds of the liability policy thus being considered first party to the contract.

“This is complicated in the club industry because the protection under the general liability policy, as well as

the excess umbrella, only responds to third party events. This would be a guest or any other non-related person, i.e. a vendor on the premises,” Harvey explained.

“Most clubs today have built out their infrastructure on the member and their family including a host of event participation such as swimming, camps, fitness etc. This creates a multitude of uncovered exposure to the participants who expect the club as sponsor to be responsible.

“This is why the board is the end target of litigation and actions since the only policy that can respond to the injury or loss is the directors & officers’ policy,” Harvey added.

“It is amazing in this day and age that this has not become a more visible issue but not much occurred when it was just golf and cards (being played at clubs).

The end game is always headed to the board members and they are open to personal litigation for their actions.”

In McCarthy’s opinion, “Staying current of newer lines of coverage like cyber liability or workplace violence can help you think about and anticipate potential incidents that might not have previously been addressed in your policies and procedures. Don’t assume liability coverage encompasses every type of event.

RISK ASSESSMENT

“A good practice for any business is to regularly evaluate risks in every department. This includes a club review of policies and procedures enacted by the board, as well as in golf, fitness, tennis, spa and food & beverage.

“Addison Reserve prepares a risk assessment that includes the possible risk, what the outcome could be if the risk were realized, and what we will do to mitigate that risk. This

helps to identify potential gaps in training or planning,” McCarthy concluded.

“It may seem repetitive; however the actions of employees and board members are the most grievous actions in the business today. Sexual harassment, discrimination, wrongful termination are the largest awards,” Harvey suggested.

“Separate covers are normally purchased at varying limits to protect from suits in this area. Other large award exposures exist with staff positions such as lifeguards, camp and event moderators and golf professional and sexual abuse and molestation issues. That’s a big concern of carriers today.

“Many clubs that experience inter-club complaints or concerns have settled disputes within the club and not made them public issues. This is mainly for reputational issues. However, the danger is that the damages could be sizable and the club is subject to financial loss that is not reimbursed from a policy of coverage,” Harvey expressed.

“Lastly, clubs need to be absolutely clear as to policy and the rules of the road with their members. Transparency is the best tool and not a threat to good governance!!! A good example is a clear policy for the dispensing of alcohol by the employee, as well as the house rules on the consumption of the same.

“The more clarity in club policy from the top down provides a buffer against possible litigious events and results,” Harvey concluded.

PUBLISHER’S FINAL THOUGHTS

Board members must be objective, unselfish, responsible, honest, trustworthy and efficient.

In a little more detail, non-profit board members have three fundamental areas of legal and fiduciary re-

sponsibility which are often referred to as Duty of Care and Duty of Loyalty and Duty of Obedience

Duty of Care: Directors have a duty of competence i.e., a requirement to act with a certain level of skill. The duty of care describes the level of attention required of a director. There’s a “duty to be informed” (understand information and ask questions) and to act with competence and diligence.

Duty of Loyalty: The duty of loyalty requires that a director act honestly and in good faith in the best interests of the organization. The duty of loyalty is a personal duty and cannot be delegated.

Duty of Obedience requires board members to follow the letter of the law at all times, including ensuring compliance with the organization’s mission; meeting all tax requirements; following all laws and codes affecting non-profit organizations, and following the organization’s governing documents and bylaws.

It’s vitally important board members be able to recognize warning signs that might indicate a change in the overall health of their club. If a board member does not understand something, they must be willing to find out the answer…that means asking questions, because the buck stops with the board.

At least, that’s the way I see it. BR John G. Fornaro, publisher

Christopher Boettcher, proudly a CCM and CCE, is the general manager/COO at The Beach Club in Santa Monica, CA and a regular contributor to BoardRoom magazine. He can be reached at chris@boettcher.com

Your Committee’s Function or Dysfunction

I once worked at a club that had 12 standing committees that met once per month with each meeting taking up to two or three hours.

That’s a maximum or 36 hours of meeting time or 20 percent of my month’s time as the general manager and chief operating officer. It was usually less, and I think that is reasonable.

If the meetings are run well, with a strong chair who guides members according to the Roberts rules of order and conducts the business of committees charge from the governing board (Dictionary: a group of people appointed for a specific function, typically consisting of members of a larger group.), you are on track as a good steward of the club’s leadership.

Unfortunately, most clubs don’t fair too well when committees come together. This is your time of year, for most north hemisphere clubs, to consider embracing, rebuilding or blowing-up your committees for the next term. Here are some functional and dysfunctional experiences from the front-lines of club management, coming hot off of the annual Club Managers Association of America’s worldwide conference, and my great contacts with club managers from all over the world.

One colleague is at a club that has 42 committees, which with at least one meeting per month equates to more than half of his time at the club. That is an inoperable state for the club. He spends more time in meetings than with his members. Now I do think there should be good face time at committees, but his key has been delegation to some to his direct reports, so he is able to keep his finger on the pulse.

Another colleague’s club has zero committees, except when there is an “event” or special project like a longrange planning session, a project of an assessment/remodel or something like that. She has an advantage with less time spent and less dysfunction in meetings. She deals with it out of the meetings via political comments, innuendo and changing agendas.

Her tactic is to stay well connected on the floor with all committee members and members at large. She’s widely popular so that helps her stay out of the fray. The problem with the situation though is that it’s hard to get the new ones through an orientation and it’s difficult for her to stay connected to the leadership to get stuff done.

Another has committees so involved that he has to get their approval for what table cloths to rent, what kind of carrots to be put on the plate…micromanagement.

And micromanagement is the biggest reason club managers leave – 39 percent is the latest statistic as outlined by Kurt Kuebler of Kopplin Kuebler and Wallace in a recent article. Not only do managers turn over but other staff members do as well. It’s the bane of our industry and what committees and boards should be alert for. Ideally. boards make policy, managers manager and members enjoy.

Another had committees with deep involvement in operations; one so to the point that they were selling items in the golf tournament, another committee member was selling insurance to the club whilst another, notwithstanding the others, sold food products to the chef too!

Obviously, this is a problem, only when it becomes a problem, not to mention the tax forms and other such things going on. For a non-profit private club, this can be touchy. Best to have a no member use policy.

These certainly are some of the horror stories that can happen. My disclaimer here, though: Good committee members who may do some of the above, can function completely benign and quite harmoniously.

Strong cultures at low line clubs can help guide the minor dysfunctions. Strong managers also make a big difference. I’ve seen it in employment lawyers who donate their time to the club and remain very fair and honest. I’ve seen meat purveyors as club members help the chef get the best product and the best service at the best price.

It’s all good until something goes wrong, though. So look for those best-practice signs, good board governance, committee member orientations, roaring committee opportunity for members and just running the club like any other business - without emotion but good solid, deliberate judgement.

You can also look to CMAA for more info. I gleaned a lot from the conference this year. Club Business Expo, which is attended by nearly 5,000 annually at cities throughout the United States, including this year in my current home town of San Francisco.

I rode in the annual bicycle chautauqua with managers from New York to Los Angeles, from Australia, Spain and Scotland, to mention a few, and while attending classes with old and new club manager friends, “committees” were a hot topic across the miles. By sharing some of these experiences, just from a learning stand-point it’s my hope your committees function well and your club continues to Lead ON! BR

BMI Celebrates 30th Anniversary Introduces Sports and Recreation Management Program

The Business Management Institute, a flourishing, in-demand professional development program of the Club Managers Association of America, marks it’s 30th anniversary this year. It’s one of the most well-respected education initiatives of the hospitality industry.

And inits anniversary year, CMAA has introduced the addition of a new elective program to the Business Management Institutes. BMI Sports & Recreation Management is a five-day, 40-hour, intensive program designed for managers to explore all management aspects of a club’s recreational features and offerings in a comprehensive manner.

Like the other BMI programs, this program takes a tangible, hands-on approach to the subject matter.

The first course, Business Management Institute I – The Basic Club Management School, was offered at Georgia State University in February 1988.

Each program is an intensive learning experience – including both technical instructions on day-to-day and long-term career aspects of club management - taught by highly qualified university faculty, industry experts, and experienced club managers.

State, Cornell, California Polytechnic, and Georgia State. More than 441 week-long programs have been offered, attended by more than 14,502 club management professionals.

Participants have come from all 50 states, Washington, D.C., and 31 foreign countries.

The inaugural sports and recreation management program will be held January 7-11, 2019, and hosted at premier clubs in the Scottsdale, AZ, area.

The curriculum will be multifaceted including the management, staffing, liability, and specific concerns for all areas of sport and recreation within a club:

• Racquet sports

• Fitness

• Spa and salon

• Aquatics

• Youth programs

• Locker room operations

• Design and development of fitness and spa facilities

• Other sports/recreation like croquet, bocce ball, lawn games, skeets/trap shooting, curling, billiards/snooker, yachting, winter activities (snow shoeing, cross country skiing, skating, hockey).

The multi-faceted BMI program includes five core courses and four electives including BMI International.

Two visionaries helped to bring these programs to fruition – A. Christopher Borders, CCM, who came up with the original idea (at the time the clubhouse manager at the Atlanta Athletic Club, Atlanta, GA), and CMAA’s longtime academic advisor, Joe Perdue, CCM, CHE, the architect and innovator of BMI. Between1988 to 2014, Joe attended more than 300 programs in-person.

Today, programs are held at the pre-eminent hospitality schools across the country including Michigan

As the club industry evolves, CMAA’s educational offerings continue to expand to meet the needs of club management professionals. BR

The Club Managers Association of America (CMAA) is the largest professional association for managers of membership clubs with 6,800 members throughout the US and internationally. Our managers operate more than 2,500 country, golf, athletic, city, faculty, military, town, and yacht clubs. For the latest information, visit CMAA’s website at https://www.cmaa.org/BMI.aspx.

Amenities

2536 Manana Drive

Dallas, TX 75220

P: 214.351.2834

Toll-free: 800.969.8008

F: 214.351.2834

www.sportssolutionsinc.com

Architects

6 West 18th Street 9th Floor

New York, New York 10011

P: 212.229.0200 ext. 120 www.lichtencraig.com

7730 E. Belleview Avenue., Suite. A-101

Greenwood Village, Colorado 80111

P: 720.266.2582

www.mai-architects.com

North Palm Beach Office

1295 US Hwy One

North Palm Beach, FL 33408

P: 561.626.9704

F: 561.626.9719

Peacock + Lewis

Naples Office

1610 Trade Center Way, Suite 5 Naples, FL 34109

P: 239.631.2332

F: 239.300.6402

jon@peacockandlewis.com www.peacockandlewis.com

15990 N Greenway Hayden Loop C-100

Scottsdale, AZ 85260

P: 480.477.1111

phxarch.com

Architects | Planners | Interior Designers

44 North Main Street

South Norwalk, CT 06854

P: 203.354.5210

www.rm-arch.com

APCD MOST TRUSTED VENDORS & CONSULTANTS

It’s the Association of Private Club Directors’ Most Trusted Vendors & Consultants and APCD and BoardRoom magazine are evaluating companies and vendors in the private club industry by the most important factor of all: How much do their customers trust them! Great businesses in the private club industry choose to invest their time and effort in creating meaningful and sustainable long-term customer relationships based on TRUST – the most precious commodity and transaction of them all.

These are businesses that put their customers first and do not focus solely on profit at any cost.

Clocks

444 Reading Road

Cincinnati, Ohio 45202

P: 800.543.0488

www.verdin.com

Kopplin Kuebler & Wallace

Southwest Office 7349 Via Paseo Del Sur, Ste. 202 Scottsdale, AZ 85258

P: 480.443.9102

F: 480.443.9642

Consulting

500 Skokie Blvd #444 Northbrook, IL 60062

P: 847.480.4844 | C: 847.421.4537

B.R. Koehnemann brkoehnemann@kempersports.com www.kempersports.com

Locations in Phoenix, Northern Virginia, Atlanta, Chicago and New York

C: 602.684.0251 | P: 623.322.0773

Whitney Reid Pennell, president whitney@consultingRCS.com www.consultingRCS.com

Executive Search

501 Kings Highway East #300 Fairfield, CT 06824

P: 203.319.8228

Dan Denehy dan@denehyctp.com www.denehyctp.com

Tampa Bay - 727.366.0487

dick@@gsiexecutivesearch.com

St. Louis - 314.854.1321

scott@gsiexecutivesearch.com

Cleveland - 440.796.7922

ned@gsiexecutivesearch.com

Ft. Myers - 239.221.7045

ned@gsiexecutivesearch.com

Northeast - 518.852.0986

dan@gsiexecutivesearch.com

Washington DC - 540.323.3388

sharlyn@gsiexecutivesearch.com

www.gsiexecutivesearch.com

Dick Kopplin, partner dick@kkandw.com www.kkandw.com

Kopplin Kuebler & Wallace East Coast Office 132 Tulip Tree Court Jupiter, FL 33458

P/F: 561.747.5213

C: (407) 864-6798

Kurt Kubler, CCM, partner kurt@kkandw.com

Kopplin Kuebler & Wallace

Cleveland Office 20373 Scott Drive Cleveland, OH 44149

P/F: 440.783.1268

C: 412.670.2021

Tom B. Wallace III, CCM, partner tom@kkandw.com

Foodservice

3908 N 29 Avenue

Hollywood, FL 33020

C: 954.805.7935

P 954.920.0737

sales@deikitchen.com www.deikitchen.com

Furniture

P.O. Box 842

Ashburnham, MA 01430

P: 978.827.3101

sales@eustischair.com www.eustischair.com

5 Hwy 82 West Magnolia, AR 71753

P: 800.221.0408

sales@southernaluminum.com www.southernaluminum.com

11071 Indian Lake Circle

Boyton Beach, FL 33437

P: 954.614.1505

Steve Berlin

XHBITZ1@XHBITZ.COM www.xhibtz.com

Game Equipment

3780 Rippleton Road, Route 13 South Cazenovia, NY 13035

P: 888.647.2778

F: 315.655.2033

custserv@cornilleauusa.com www.cornilleauusa.com

Golf Course Architect

14332 Justice Road

Midlothian, VA 23113

P: 804.897.8600

F: 804.897.8603

Lester George, president lester@georgegolfdesign.com www.georgegolfdesign.com

APCD MOST TRUSTED VENDORS & CONSULTANTS

These are businesses that put their customers first and do not focus solely on profit at any cost.

Interior Design

95 Reef Road Fairfield, CT 06824

P: 203.259.2555

Craig J. Smith studio@c2Limited.com www.c2limited.com

700 School St. Unit. 2 Pawtucket, RI 02860

P: 401.365.1171

Peter Cafaro pcafaro@jbd.cc www.jbd.cc

Kid’s Camps

821 Executive Drive Princeton, New Jersey 08540

P: .877.671.2267 ext. 500 info@kecamps.com www.kecamps.com

Lockers

1825 West Walnut Hill Lane, Suite 110. Irving, TX 75038

P: 972.815.4000

Toll Free: 800.433.3630 info@hollman.com www.hollman.com

Photography

3186 E. La Palma Avenue Anaheim, CA 92806

P: 800.653.5766 www.eaclubs.com

Real Estate

212 Old Quitman Annex Road

Adel, Georgia 31620

P: 229.896.1492

C: 678.429.7997

Toll free: 888.324.5020

F: 229.896.1180

Hilda W. Allen hildahwa@gmail.com www.hildawallen.com

Technology

3650 Mansell Road, Suite #225 Alpharetta, GA 30022

P: 888.240.3501 info@globalnorthstar.com www.globalnorthstar.com

Uniforms

Pear Tree Plaza Building D

289 Hwy 33 East Manalapan, New Jersey 07726

P: 800.711.5885

F: 732.792.0111

Martin Klein www.ambassadoruniform.com

5442 Gateway Plaza Drive Benicia, CA 94510

P: 707.746.7011

Debbie Surani

info@highenduniforms.com www.highenduniforms.com

BOARDROOM MAGAZINE ADVERTISING INDEX

ACCP.

Addison Law.

Ambassador Uniform.

Amish Country Gazebos.

Angela Grande Design.

Big John Grills.

Billy Casper.

117

116

BoardRoom Distinguished Clubs108-109

Booth Group.

116

Club Benchmarking.

ClubDesign Associates.

Creative Golf Marketing.

Concert Golf Partners.

Denehy.

Eustis Chair.

EZ Links.

Flora Springs.

FOOD-TRAK.

117

High End Uniforms.

Harris Interior.

HFTP

J2 Design.

Judd Brown

Kopplin Kuebler & Wallace.

Polar.

89 RCS Hospitality Group.

117 Rogers McCagg.

33.

51 Lichten Craig.

MAI - Marsh & Associates, Inc..

McMahon Group.

Bozeman Club and Corporate Interiors41 C2 Limited Design.

Chambers.

ClubTec.

Gasser Chair.

GSI Executive Search

GCSAA.

Golf Maintenance Solutions.

BOARDROOM MAGAZINE COUNTRY CLUB INDEX

Husam Atari, GM/COO, River Bend Golf & Country Club,Great Falls, VA

Jeff Benton, president, River Bend Golf & Country Club, Great Falls, VA

Chris Boettcher, CCM, CCE, GM/COO, The Beach Club, Santa Monica, CA

Executive Chef Roger Brock, Boca West Country Club, Boca Raton, FL

Addison C. Craig, golf professional, La Gorce Country Club, Miami Beach, FL

and Bridge Golf Club at Bridgehampton, NY

Rocco Diina, president, The Buffalo Club, Buffalo NY

Lou DiLorenzo, president, Interlachen Country Club, Edina, MN

123

117

Brooke Dinsmoor, dir. of communications, Woodfield Country Club in Boca Raton, FL

Ken Donovan, president, Fiddler’s Elbow Country Club, Bedminster, NJ

Garth Elliott, president, Randpark Golf Club, Randpark, SA

Brian Gardner, membership director, Philadelphia Country Club

Doug Green, president, the Polo Club of Boca Raton, FL

MembersFirst.

Northstar.

PGA Reach.

Peacock + Lewis.

124

Tom Hurley, GM/COO, Fiddler’s Elbow Country Club, Bedminster, NJ

Dr. Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club

Executive Chef Edward Leonard, The Polo Club, Boca Raton, FL

Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI

Matt Linderman, Boca West Country Club, Boca Raton, FL

Brett Morris, GM/COO, the Polo Club of Boca Raton, FL

David Pendy, GM/COO Lakewood Country Club, Rockville, MA

Robert A Sereci, CCM, GM/COO, Medinah Country Club, Medinah, IL

Brett C. Schwartz, USPTA Master Professional, director of tennis, New Orleans Lawn Tennis Club, New Orleans, LA

Rosie Slocum, MCMP director of membership, BallenIsles Country Club, Palm Beach Gardens, FL