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

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

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

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

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

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

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

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

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

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

Top

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

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

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

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

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

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

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

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

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

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

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

Top

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

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

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

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

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

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

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

Top

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

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

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

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

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

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

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

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

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

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

• add objectives

• give operational criteria input

• establish program elements

• be involved in up-front programming

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

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

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

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

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

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

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

• A solid operational background

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

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

• An understanding of the design process.

• Experience in document development and specification review.

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

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

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

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

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

The Bottom Line

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

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

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

Top

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

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

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

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

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

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

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

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

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

I. Construction and Renovation

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

II. Operations Analysis

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

III. Internal Corporate Activities

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

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

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

Top

Article 6
The Well Dressed Club Manager "A Parable"

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

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

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

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

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

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

No problem he thought. He will work harder.

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

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

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

"I feel naked."

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

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

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

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

Top

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Top

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

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

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

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

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

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

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

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

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

Be prepared for the following:

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

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

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

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

Top

Article 9
The Golf Membership Cap - What Is Right?

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

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

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

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

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

Top

Article 10
"The Next Major Trend for Private Clubs"

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

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

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

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

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

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

This education push promoted progressive philosophies to management professionals.

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

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

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

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

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

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

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

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

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

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

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

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

Top

Article 11
The Membership Survey Process - Part I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Top

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Top

Article 13
"Best Practices for Club Boards"

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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