Month: September 2022

From Forming to Performing: Principles and Practices for Effective Club Committees

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Regardless of how a club chooses to align committees within its governance model, there remains the challenge of how best to establish them (forming) and realize their full potential (performing). Here, we describe the principles and best practices that apply to the constructive formation and effective performance of club committees.

Forming: Number, Size, Leadership, Membership and Terms

Number

There is no perfect number of club committees or ideal description of their scopes. The bylaws may specify what committees are required, but they usually authorize the board to create additional committees as it deems necessary and appropriate. Have a balance. Establish enough committees to address the breadth of areas prioritized by the club, but don’t overdo it. Having too many committees can lead to compartmentalization; having too few can burden them with too wide a scope. Most clubs have between six and 10 committees, which seems to provide a good balance.

Size

Committee size varies with the function and the desire for multiple perspectives. For example, the finance committee may contain four or five members who have relevant skill sets, while the golf committee may have seven or eight members and benefit from perspectives based on age, gender, handicap levels and the like. Avoid overpopulation, however, as too many members can reduce a committee’s efficiency and effectiveness.

Leadership

The next task is deciding on committee chairs. Here again, the bylaws may dictate the process. For example, the bylaws may state that the president selects committee chairs. They may also require that commit-tees be chaired by a board member. While we support the president selecting the committee chairs, we recommend a board policy with guidelines the president must use in the selection process. For example, the board’s policy may include a requirement for the president to refer to a board-approved profile of the ideal committee chair in terms of skill sets, leadership, good judgment, civil discourse and other desirable traits.

We do not favor the requirement that committee chairs be drawn from sitting board members. Select chairs on their merits, not their offices. If a board member fits the profile of a chair, fine, but unless the bylaws require it, don’t allocate committee chairs among board members simply based on their positions.

Membership

Now comes the time to populate your committees. We recommend allowing the committee chair to select his/her committee members. Again, however, we recommend that the board develop a policy to guide the chair in selecting committee membership. It is common for clubs to rely on volunteers to serve on committees. Yet, while a person’s desire to be on a committee is a useful criterion, it shouldn’t be the sole basis. Often, club members volunteer to serve on a committee to advance a particular agenda or program, which may make their membership on the committee more of a problem than a benefit.

Some club bylaws require the board to approve both the committee chairs and committee members. Although we don’t believe it is a necessary provision, it can be a way for the board to confirm that its policies were honored in the selection of a committee chair and committee members.

Many clubs require a year or two of service on a committee to quality for nomination to the board. This is a useful requirement as committees provide an excellent source for identifying board candidates. A member’s contribution to a committee is a good indicator of their likely contribution as a board member.

Terms

Clubs should have one-year terms for both committee chairs and committee members, with an allowance for additional terms so long as the chairs and members are selected on their performance and not by default. If you have a good pool of candidates who are willing to serve on committees, you may want to set a limit on the number of additional terms.

Performing: Management and Evaluation

Management

Once a club has established a committee and its chair, the board must develop a charter to clarify the committee’s role, its organization, the expectations of its members and the metrics used to gauge its effective-ness. The length of committee charters will vary with the amount of detail describing the committee’s scope. Although some charters include two or three pages of specifics, we favor general descriptions of scope that avoid exhaustive detail. If problems arise, such as a committee drifting out of its lane, the board can always add detail to bring it back in line.

Evaluation

It’s perhaps a bromide, but it’s true: What gets measured gets done. Precious few clubs formally measure the performance of their committees. Those that do rarely complain to us about the effective-ness of their committees. The below visual is an example of an instrument to measure a committee’s effectiveness. It can be used as a self-evaluation by committee members or as an annual survey for board members to complete. If committee chairs and committee members are aware of the rubric used in their evaluation, they are far more likely to be effective.

Gaining the full benefit of club committees does not involve sophisticated techniques or innovative approaches. It simply requires carefully choosing their scopes, organization, leadership and member-ship. Then, by managing and measuring their performance, a club will realize the potential of committees and add significantly to the effectiveness of its governance model.

This piece was authored by GGA Director, Liz McDowell CPA, CA, CCM, for the National Club Association‘s Summer 2022 Issue of Club Governance. 

Executive Search: Director of Membership and Marketing for Mount Vernon Country Club

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  Director of Membership and Marketing
Mount Vernon Country Club
Alexandria, Virginia

The Club

Founded in 1961, Mount Vernon Country Club is a member-owned golf and country club in Alexandria, Virginia, located 19 miles from Washington, D.C. Mount Vernon Club is a family-friendly environment primarily focused on golf and dining. The 18-hole championship golf course features the work of golf course designers Russell Roberts, Ed Ault, and most recently, Bill Love. There are five distinct food and beverage locations along with a pool complex featuring the Barracuda Grill. The membership at Mount Vernon is fully subscribed with a growing wait list.

Mount Vernon Country Club Overview:

  • 700 members (Golf: 475, Other: 225)
  • Initiation fee (Resident Member Golf: $32,000)
  • Annual Dues (Golf: $7,068 and Capital Dues $1,236)
  • $8.30M Gross volume
  • $3.70M Annual dues
  • $2.30M F&B volume
  • $3.30M Gross payroll
  • 120 Employees in-season; 90 off-season
  • 9 Board members

The Director of Membership & Marketing Position

The Director of Membership & Marketing reports to the General Manager as well as the Membership Committee and Board of Directors.

The person selected for this position will be required to formulate and present annual plans for membership recruitment, public relations, brand communications, events and promotions. Upon approval by the General Manager, Membership Committee and Board, it is the responsibility of the Director of Membership & Marketing to implement all aspects of the plan within the approved budget.

Development of all membership marketing materials, the new member orientation program and maintenance of all membership files Is an Important aspect of this position. The person selected for this role should have an outgoing and friendly personality and expect to be highly visible to the membership and staff. A well-established reputation in the community from which to draw prospective members will be considered a positive asset. Alongside the General Manager, the Director or Membership and Marketing will be expected to set the example for consistently treating members, prospects and fellow employees with first class hospitality.

Specific Job Responsibilities:

  • Preparation of annual plans/budgets for membership recruitment, public relations, marketing, communications, events and member promotions.
  • Implementation of approved plans, within the budget.
  • Prepare and present monthly membership and sales reports to General Manager, Membership Committee and Board of Directors.
  • Develop a robust prospect list through member referrals, personal contacts, business contacts, civic organizations, etc.
  • Prepare timely communications to members of membership matters and Club activities.
  • Day-to-day responsibility for maintaining for all membership files, responding to member communications, processing resignation or status changes and all other member-related administration functions.
  • Actively solicit new member prospects, respond to membership inquiries, assist prospects with the application process, provide Club tours, plan and implement special events, socials and all other activities related to new member recruitment.
  • Coordinate and manage all aspects of the new member orientation process.
  • Prepare and integrate administrative and promotional tools Including the membership application packet, welcome packet and handbook for use In member sales Initiatives
  • Responsible for updating and maintaining the Club’s website and assisting in the preparation of the monthly member newsletter (The View). Assist department heads in the promotion of Club activities and special events.
  • Tracks home purchases and move-ins in the Mount Vernon area and builds relationships with local realtors to gain access to these new residents as potential prospects.
  • Work with the department heads and staff to provide guidance and training on how to direct questions regarding membership, greet prospects, answer telephones and provide appropriate answers to members and prospects.

Important Individual Characteristics:

  • A naturally enthusiastic personality and passion for membership sales and club marketing.
  • The ability to build relationships both internally and externally that will lead to a steady stream of referrals.
  • Possess the ability to quickly learn the various membership options and articulate the benefits of each clearly and concisely.
  • Ability to act as a thought partner with the board and committees.
  • The ability to communicate effectively, both verbally and in writing.
  • Disciplined follow-through to ensure the goals and objectives of the Club are met.
  • Ability to cultivate a high-level of member satisfaction.
  • Maintains a high level of visibility to members.
  • Understands the importance of digital communication and can utilize web and social media tools to communicate with the staff and membership.
  • Ability to develop a dedicated team with a shared vision.

Candidate Qualifications:

  • A minimum of 5 years of progressive sales and marketing experience, preferably in a private club or hospitality environment.
  • A Bachelor’s Degree from an accredited college or university, preferably in Sales & Marketing or Business.

Note: A pre-employment drug screen and background check will be required.

Salary & Benefits:

Salary is open and commensurate with qualifications and experience. The Club offers an excellent bonus and benefit package.

Inquiries:

Interested candidates should submit résumés along with a detailed cover letter which addresses the qualifications and describes your alignment/experience with the prescribed position by Wednesday, October 12, 2022.

Documents must be saved and emailed in Word or PDF format (save as “Last Name, First Name, Mount Vernon DMM Cover Letter” and “Last Name, First Name, Mount Vernon DMM Resume”) respectively to: execsearchus@ggapartners.com. Please email résumé with references.

 

For more information about Mount Vernon Country Club, please visit www.mountvernoncc.org.

The Challenge of Club Governance: An Interview with Damon DiOrio, CEO, Desert Mountain Club

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Damon DiOrio, CCM, CCE has long been recognized as one of the top general managers in the private club industry, stemming from his 14 years leading the Charlotte Country Club and five years as CEO of the prestigious Desert Mountain Club in Scottsdale, Ariz. In a recent conference call with more than 100 university professors who teach hospitality, DiOrio was asked to identify the greatest current challenge in the club industry. He was quick to reply, “Club governance.” We wanted to know why. Here is what he told us.

Club Governance (CG): Damon, with all the other challenges facing clubs today—labor shortages, supply chain issues, inflationary food and fuel costs—why have you singled out governance as the greatest challenge?

Damon DiOrio (DD): To a large extent, it’s a matter of what we can control. While labor shortages and inflation present significant challenges, they are conditions beyond our control, and sophisticated club executives will implement tactical operational changes to successfully navigate through these issues. Establishing an effective governance model is a far greater challenge as many clubs have a history of poor governance, which can thwart an effective leader’s ability to effect positive change. My point, therefore, is to encourage club leaders to address a challenge within their control and work toward improving governance structures and policies that enable the club GM/CEO to effectively lead their operations.

CG: Why do you believe club leaders need encouragement?

DD: Mainly because developing an effective governance model requires challenging the status quo, which is based on decades of policies that are not best practices but have been institutionalized into a club’s culture. Changing entrenched club traditions is a systemic process that requires courage and strong leadership to challenge. While I generally appreciate the value of traditions in defining the brand of a club, when they stand in the way of good governance and positive results, they deserve to be reviewed and, in most cases, changed.

CG: For example?

DD: To start with, the election process. Choose board members on their merits and the skill sets needed to provide a well-rounded and diverse board. Then, use an uncontested process involving robust vetting by an independent, objective nominating committee. Too many clubs rely on contested elections that can result not only in reducing the candidate pool, but also in electing board members on their popularity, seniority or agenda.

CG: OK. Assume a club has put the right people on the board. Then what?

DD: Now you want the board to speak with one voice—in writing. It does that by developing policies, which are housed in a document we call the board policy manual (BPM). The BPM communicates how the board will carry out its fiduciary duties. It clarifies the role of the board, its members and officers, and the GM/CEO. It also describes the various club committees, their roles, and their proper alignment. Our board members are caring and successful professionals, but they are volunteers. Having solid policies in place provides stability and continuity.

CG: Speaking of committees, what advice do you have for club leaders on how to get the most of their committees?

DD: First, look at the functions where a committee can assist in proposing policies, advising leaders and bringing the benefit of multiple perspectives. There are generally two types of functions and therefore two types of committees: board committees like finance, audit and membership, and operations committees like golf, greens and grounds and house. The tradition among clubs is to have all committees report to the board, but having operating committees report to the board invites the board to micromanage functions to which it should hold the GM accountable.

CG: So do you have committees report to you as the GM/CEO?

DD: Absolutely. The house and golf and agronomy committee both report to me. We have seven golf courses at Desert Mountain and the golf and agronomy committee provides useful advice, player insights and the vision of the golf experience they desire to our key directors. For example, I recently asked the committee to help us define our outside tournament strategy, including a recommendation for a USGA Championship request. This type of strategic guidance is welcomed and appreciated.

CG: Golf is such an important part of the Desert Mountain community. Does your board worry about not having the golf & agronomy committee report to them?

DD: No. The board holds me accountable as the CEO for the condition of our golf courses and the quality of our golf program. It also gives me the authority and resources to get the job done. The golf & agronomy committee provides feedback and suggestions, and at the end of the day, it’s my responsibility to deliver the finest golf experience to our members.

CG: Is your title of CEO commonly given to general managers?

DD: No, but I highly recommend clubs consider it. Successful businesses are led by capable CEOs. They are not managed by committees or by boards of directors. Yet too many clubs hold on to governance models based more on traditions than operational efficiency. More than the title, a business mindset and model help shape expectations for all stakeholders and can help pave the way for a cultural shift. As a successful CEO you are expected to forge a safe, positive and healthy culture; engage state and local officials; be a philanthropic leader in the community; and protect the history and culture of your organization for decades to come.

CG: What would you say to someone who argues that running a club as a business will result in a more staid, impersonal culture rather than a more collegial community?

DD: I would say, “Come to Desert Mountain!” We see no conflict between a caring culture and an efficiently run operation. Just the opposite. We diligently promote a warm and welcoming culture, highlighted by personalized service and name recognition. Our people—members and our staff—are our top priority. But along with our commitment to community is our commitment to stewardship and that means using our authority wisely to govern effectively and to manage efficiently.

CG: Any final thoughts on the challenge of governing a private club?

DD: Only to remind club leaders that while they are forced to react to challenges like inflation and labor shortages, they can be proactive in addressing their governance model. There are plenty of good examples of clubs employing sound governance principles and practices. Search them out, adopt them and use them to develop a robust governance model, which will provide the tools to succeed in meeting all manner of challenges.

This interview was conducted by GGA Director, Frederic Laughlin for the National Club Association‘s Summer 2022 Issue of Club Governance. 

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