Author: Linda Dillenbeck

4 Priorities for Private Club Boards

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“When the ox is in the ditch, there is much work to be done.” In most private clubs, the “ox” is a troubling or confounding situation that could – or should – have been avoided. Noted private club attorney, Robyn Nordin Stowell of the Spencer Fane LLP law offices admonishes clients who have not called before putting the ox into the ditch. “Clubs are so well managed and led these days that after-the-fact guidance should be unnecessary,” she says.

Want to keep the ox out of the ditch at your club? Attend to four practices that reduce risk and keep your club on solid ground.

1. Execute twice-per-year legal reviews with your club attorney.
Meet with your legal advisors to anticipate emerging challenges or issues on which the club and its servant leaders should be anticipatory; Among the concerns one should voice are:

• Board Minutes – In your review of our board meeting minutes, do you see any matters of concern or legal risk that should be corrected? Board minutes should be reviewed to minimize misstatements which could pose future risks to the club or its directors.
• Membership Program and Representations – Membership demand since the pandemic has filled most clubs still using membership documents that were created before CY 2020 when most clubs were aggressively seeking more members.
• Governance and Disciplinary Practices – The board should review its disciplinary practices to ensure that those practices conform to current standards of best practice…and state statutes.

2. Conduct an annual risk assessment with your property and casualty insurance provider.
One of the most rapidly increasing costs for most private clubs is property and casualty insurance…if you can obtain it. With rates increasing as a reflection of the overwhelming risks insurers are experiencing – whether wildfires, hurricanes, and tornadoes – in addition to the usual slip/fall risks, club leaders should evaluate risks with the understanding that most insurance premiums are a factor of annual club revenues adjusted (multiplied) by a risk factor that is established across business segments. Ask your insurance representative to conduct a risk assessment that may result in savings for the club – unless your club is not in safe operating condition.

3. Meet with the club’s auditor 90 days before the scheduled annual audit.
Many club leaders dread the annual audit. Embrace this independent, third-party review of the club’s books as an opportunity to improve operational results, which may reduce financial risks throughout the club. Your auditor sees many clubs and can provide financial benchmarks in addition to sound business advice.

4. Execute an annual evaluation of your club’s cyber security.
“The cyber battlefield never sleeps,” says Joseph Saracino, CEO of Cino Limited, which specializes in cyber security for private clubs. “In today’s world, many of us are sitting ducks, waiting to become the next cybercrime victims to be publicized by the media.” If an ounce of prevention is worth a pound of cure, take aggressive steps to ensure that the club’s members can rely upon a safe haven for themselves and their families.

Planning and acting ahead of the problem are a sure sign of effective servant leadership. Will you wait for the problem to put your club in the ditch or prevent the problem? Pretty easy choice when you think about it.

GGA Partner Henry DeLozier penned this article for BoardRoom Briefs. It appeared in the May 18, 2024 edition.

3 Keys to Consensus Based Strategy Planning

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Private clubs operate within a unique ecosystem where member satisfaction, financial sustainability, and strategic foresight intersect. To navigate this complex landscape successfully, effective planning requires a consensus-based approach to strategy development.

Consensus-based strategic planning in private clubs requires club leaders to develop strategic plans that align the goals of multiple stakeholders, including members, employees, management, boards and committees. It emphasizes collaboration, communication, and shared decision-making processes to ensure that the strategic direction of the club reflects the collective interests and priorities of all involved parties. This approach fosters a sense of ownership, engagement, and commitment among stakeholders, leading to more effective implementation and sustainable success for the club.

The development process involves synthesizing member feedback, conducting comprehensive research, collaborating with experts, and ensuring financial viability. Here’s how these elements come together to form a robust strategic framework.

Informed Member Feedback: At the heart of every successful club strategy lies the voice of its members. However, gathering member feedback is not merely about soliciting opinions but rather about structuring the feedback process strategically and with a sound research methodology. Members who are in essence the customers of private clubs, are unique in two distinct ways: First, many are also owners, with a vested interest in the club’s success beyond the member experience. Second, they often don’t want the club to operate strictly like a business in certain aspects, as members typically prioritize experiences over financial performance. Considering these factors, it is essential to design surveys and engagement platforms that prompt members to prioritize their preferences and consider trade-offs. While member input is vital, it is just one data point to be considered alongside research and industry expertise.

Comprehensive Research: Comprehensive research is essential for private clubs to develop a robust strategic plan. This involves analyzing internal dynamics like membership demographics, financial performance, and member satisfaction, alongside benchmarking against peers and industry standards. Understanding market trends and using dynamic financial models for scenario analysis adds depth, helping clubs anticipate shifts and make informed decisions. This research-driven approach not only optimizes resources and enhances member experiences but also forms the foundation for consensus-based strategy, aligning stakeholders and ensuring strategic alignment.

Expert Collaboration and Maintaining Impartiality: Developing a consensus-based strategy requires collaboration among experts with diverse skill sets. This includes individuals proficient in business, finance, law, hospitality and strategic planning. However, it’s essential to recognize the nuances of the private club industry and leverage management and external industry experts to bridge knowledge gaps effectively. Maintaining impartiality throughout the strategy development process is critical. Balancing diverse interests and opinions within the club requires a data-driven approach that prioritizes objective analysis over personal preferences. By leveraging data and insights, clubs can make informed decisions that benefit the collective interests of their members while ensuring organizational resilience and growth.

Private clubs are unique and operate in a complex landscape. Employing a consensus-based approach to strategic planning is an important process to ensure your club is positioned to thrive now and in the future.

Matt Clarfield is a Manager at GGA Partners specializing in helping clients develop comprehensive strategic plans. To reach him, email matthew.clarfield@ggapartners.com.

Addressing Board Transparency

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ADDRESSING TRANSPARENCY
THREE FACTORS CRITICAL TO HIGHLY EFFECTIVE PRIVATE CLUB BOARDS

As society becomes more open and increasingly skeptical, club members demand greater transparency from their boards. Whether in member focus groups, general meetings of members or the club dining room, members seek greater transparency.

Three factors are proving critical to highly effective private club boards: (a) communication methods, (b) communication cadence, and (c) nondisclosure rules.
Boards are encouraged to heed three primary factors:

Establish and normalize the board’s communication methods. Develop a comprehensive communication plan for the club and make board communications an important and consistent part of the club’s communications. In so doing consider:

1. Topics of interest – Most club members seek a sense of “belonging.” See that they are invited to suggest topics of interest to them. In most clubs, that roster of needs includes activities and events, human interest stories about fellow members and staff, and the latest programs for each member segment. To ensure a sense of inclusion, see that members are aware of important activities well in advance of the sign-up or registration periods.

2. Multiple media options – Rely upon a wide array of media tools ranging from social media, email, postcards, and posters within club buildings. Most clubs serve multiple generations with preferred and most commonly used media options. Recognize that different subsets of the club’s members – separated by gender interests and generational media usage – require recognition and programming.

Maintain a reliable cadence of communications. Establish, announce and honor a realistic cadence of communications by topic and by membership category to help your members know what to expect and when. There are several keys to an effective communications cadence:

1. Communications profile – Develop an understanding of communications preferences for each member. Understand when – by day of the week and time of day – each member wants communications from the club. Understand what media options each member prefers. Use it.

2. Communications calendar – Publish the communications calendar to enable all members to watch for the topics of greatest interest to them. Keep it. Ensure that members and staff are well aware of the schedule and have ready access to each communication.

3. “Big events” communications – For the most popular club-wide events, such as the member-guest, holidays with Santa, parent-child dance, interrupt the normal cadence to draw attention to these special occasions.

Be transparent about the topics which will not be disclosed. Some topics – such as matters of club member discipline, employee compensation and benefits, and contract negotiations while in process – are confidential and should not be disclosed. Make it clear to members that topics require confidentiality of board members … and honor that confidentiality requirement. Be understanding and consistent to demonstrate that the board seeks the openness many members desire except on these important points.

Be transparent about what topics the board will not divulge for reasons of confidentiality and employee/member privacy. Some members want to see board meeting minutes and the club’s financial information, such as the balance sheet and income statement. The board should develop and broadly communicate what information it will share with members and in what format. The board is well advised to remember that these reports should be considered confidential and, therefore, not readily distributed outside of the club membership.

Beyond members’ demands for greater transparency, effective boards want club members to be well-informed and engaged with their clubs. Private club boards must maintain highly effective, truthful and consistent communications with club members. The rewards are greater member satisfaction, member engagement and a restful night’s sleep for board members.

This article was written by GGA’s Henry DeLozier for The Boardroom Magazine. It appeared in the March/April 2024 issue.

CMAC Partnership Continues

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The Club Management Association of Canada and GGA Partners Renew Partnership Agreement for Three Years

The Club Management Association of Canada (CMAC) and GGA Partners are pleased to announce a partnership renewal agreement for a three-year period. The CMAC Corporate Partner Program recognizes industry partners that share the values of CMAC and offer members support as leaders in the club management profession in Canada.

The renewal as a Platinum Corporate Partner will continue to showcase GGA Partners long-standing commitment to the professional club industry and CMAC in the categories of strategic planning, business intelligence, and people services. GGA will continue to support CMAC members by facilitating an Annual Club Industry Survey focused on trends and relevant club industry insights. Beginning in 2024, GGA will work with CMAC to conduct and deliver the Annual General Manager and Food and Beverage Compensation Reports of CMAC members.

CMAC’s vision is to create great leaders through excellence in professional club management and its mission is to promote and develop the profession of club management. The Association offers a variety of programs and services in response to member needs and expectations including the certification program leading to the Certified Club Manager (CCM) and Certified Chief Executive (CCE) designations. Access to career opportunities, and a forum for networking for COOs, GMs, clubhouse managers, food and beverage supervisors, golf superintendents, chefs, and other professionals involved in club management are also important offerings of CMAC.

“We are excited to extend our relationship with CMAC and its members as a platinum corporate partner,” commented Michael Gregory, a Partner and Managing Director of the firm. “As a trusted advisor to many of the top clubs nationwide, we have the ability to seamlessly integrate our brand with CMAC and provide value to its members through our research and people services contributions.”

“GGA Partners continue to illustrate their dedication to the professional club industry and we’re thrilled to continue working with their group as a platinum corporate partner for the next three years,” indicated Suzanne Godbehere, chief executive officer at CMAC. “As a long-standing corporate partner, the firm has provided guidance and valuable industry insights to our members and we look forward to working closely with Michael and his team.”

 

About the Club Management Association of Canada
The Club Management Association of Canada is the national professional association for individuals involved in the club management profession in Canada. Since 1957, the association has been supporting members with education, certification, networking and member events to facilitate them being the best in the industry. Members include general managers, chief operating officers, assistant general managers, clubhouse managers, golf superintendents, chefs, controllers, food and beverage supervisors, golf professionals, as well as students interested in pursuing a career in club management. CMAC professionals work at private, semi-private and public golf clubs, country clubs, city clubs, faculty clubs and recreation and leisure clubs.

CMAC is headquartered in Toronto, Ontario with over 650 members and 11 branches across Canada.

Club Members Perspective – 2024

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Launched in 2020 to provide club industry operators insights into club members’ changing preferences and desires, this installment of the Club Members Perspective goes beyond current habits and preferences to examine the underlying reasons behind members’ behaviors.

This year’s survey results show:

Members find emotional connection value over all other types of value, including the often-discussed cost-benefit. 

Members are motivated by the desire to access amenities and services, followed by having the right culture. 

Generationally, younger members place higher importance on most club areas, as they plan to use the facilities more than their seasoned counterparts. 

While members agree that the social environment is critical, a desire for non-traditional usage of the club is not universal.  

Members’ concerns mirror those of managers – there is a growing concern related to the lack of people to work in clubs. 

While members plan on staying longer, this increased member ‘stickiness’ could be a challenge moving forward.  

Read now

About GGA Partners
GGA Partners™ is an international consulting firm and leading advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We work with owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance. Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. GGA Partners has offices in Toronto, Ontario, West Palm Beach, Florida, Phoenix, Arizona and Dublin, Ireland.

GGA Partners is proud to be a long-standing CMAA Business Partner.

For further information, contact:

Dr. Eric Brey, Ph.D.
Director
GGA Partners
t: 715.505.7716
e: eric.brey@ggapartners.com

31 Years | 31 Lessons – Lesson 1

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Managing a private club is  not an easy task. It requires knowledge, stamina, fortitude, patience and a sense of humor. With each new year comes new challenges, opportunities and lessons to learn.

When GGA Director Colin Burns, CCM, joined the firm, he shared the lessons he learned over a lifetime in the hospitality industry, as an advocate for club management and his three decades as the general manager of Winged Foot Golf Club with our team. In hearing those lessons, we were reminded how success comes from doing the right thing every day.

We asked Colin to record his common sense and professional advise for us to share with you. Today we present the first of Colin’s 31 Years | 31 Lessons videos. We will be releasing all 31 on our LinkedIn page over the next several months in the hope you find these lessons helpful as you navigate your own path to success as a leader in our industry.

Watch Lesson 1

 
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