Author: Samar Abdourahman

Member Satisfaction Trends & the Importance of Continuous Measurement

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Club leaders generally have a strong pulse on the strengths and weaknesses of the member experience at their club. But given the amount of direct member feedback that Club Managers receive and the presence of vocal minorities at every club, it can be difficult to prioritize the needs of the silent majority.  

GGA has the opportunity to facilitate many private club surveys that collect ongoing feedback from tens of thousands of members each year. In doing so, common trends in member satisfaction begin to reveal themselves, and an understanding of what lies beneath the general satisfaction feedback.  

That is why formal member surveys are essential to help club leaders gain a deeper understanding of member satisfaction at their club. We recently released the results of our annual Club Leader’s Perspective industry survey, a 2023 update on pressing needs in club management, including emerging trends, challenges and needs heading into a new year. The feedback from 230 club leaders across the industry uncovered some interesting insights regarding member satisfaction: 

Those who do not measure satisfaction through a survey were more likely to be optimistic about satisfaction levels at their club – 42% of responding club leaders surveyed their members over the past year. Of that cohort, 61% measured an overall increase in satisfaction. In contrast, 74% of the audience that did not measure satisfaction perceived an increase. 

Across our client sample of satisfaction surveys, we observed a relatively flat overall satisfaction trend this past year, and we believe it is unlikely that 3 in 4 clubs this past year experienced improved levels of member satisfaction. As an overall trend, we observed satisfaction levels in 2022 remain slightly elevated from pre-pandemic levels but relatively consistent with 2021. The one area that we noticed a common decrease in satisfaction was food and beverage operations, often driven by low scores in menu variety/selection and service consistency.  

Only 16% of club leaders believe they are facing new and significant challenges related to their membership at their club. 

We were surprised to see ‘membership’ lower in terms of creating new challenges for club leaders. Given the high turnover and member growth that many clubs incurred during the pandemic, we are starting to observe ‘generational divide’ challenges emerge as a strategic issue for many clubs, specifically preserving culture and assimilating new and old generations of members. Member surveys provide great value in mitigating this issue by clearly delineating the key differences and commonalities in wants, needs and priorities for different generations. 

For the club leaders who measured satisfaction, they found older generations to be harder to satisfy than new generations, which is consistent with what GGA has observed the past year. Club leaders who did not quantitively measure satisfaction displayed a more balanced perception of the difficulty of satisfying each generation.  

Club leaders who surveyed their members were also more likely to have increased their membership size in 2022 (or waitlist), and more likely to have deployed an adjustable capacity for membership based on activity access and utilization (rather than a pre-determined rigid cap from the bylaws). Intuitively, this makes sense as regular member feedback can provide club leaders with the confidence to optimize usage at the club, satisfaction with access, and ultimately identify opportunities to increase members or member usage.  

From a membership perspective, the industry remains in a position of strength, with a growing number of waitlisted clubs and member feedback that suggests low attrition risk due to current satisfaction levels. But developing and maintaining a deep understanding of member satisfaction at a private club should not be a cyclical exercise. It requires consistent and ongoing measurement. In high times, like the present, this allows you to optimize members and usage, maintain competitive strengths and foresee any future satisfaction risks like the challenge of bridging a harmonious culture across multiple generations. In down-times, it can provide a valuable roadmap and priority list to address weaknesses and focus on the elements of the member experience that will move the needle the most in terms of restoring satisfaction and retention.  

Connect with the authors:
Ben Hopkinson, Director
ben.hopkinson@ggapartners.com

James Stumpo, Senior Associate
james.stumpo@ggapartners.com

Leveraging Personality Research to Find Club Leaders

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As the club industry continues to evolve following the COVID-19 pandemic, many clubs are facing the challenge of finding the next great Chief Operating Officer/General Manager (COO/GM).  The increase in retirements, a constrained talent pipeline, and the change in expectations of work-life integration contribute to an increasingly challenging talent acquisition environment.

Many clubs will turn to search firms to help find the right leader for their club. As part of the process, most firms conduct an introductory inquiry into the functional aspects of the position by identifying the requirements and the unique knowledge, skills, and abilities the club needs. While this is an important introduction to the position’s basics, it doesn’t necessarily identify the often hidden and interrelated needs unique to the club and the membership. To successfully conduct an executive search, a deeper understanding of the position is often necessary.

Using a research-based approach creates deeper, data-informed insights to target suitable candidates and enhance the success of the search.  In developing an understanding of the position and the club itself – its traditions, culture, and future aspirations – a more targeted approach can be used to locate the right candidate. This is accomplished by engaging multiple stakeholder groups at a club to identify the right candidate pool, attracting potential hires and correctly assessing fit, and placing a candidate with the best opportunity to help move the club forward.

Unlike traditional, industry connections-first processes focused on managerial skillsets, research can further clarify the unique considerations of each club to find suitable candidates. Examining the personality required of future leaders creates a depth of insight to help build the managerial environment, meet the members’ expectations, and position the club for long-term success.

Personality tests, which have been widely used for decades, are based on the four temperaments identified by Hippocrates:

  • supportive personality traits (e.g., supportive, thoughtful, considerate).
  • inspiring personality traits (e.g., persuasive, inspiring, personable).
  • driver personality traits (e.g., results-oriented, independent, ambitious).
  • analytical personality traits (e.g., systematic, structured, logical)

Unlike personality tests applied to potential candidates, GGA emphasizes the importance of the club’s expectations and environment to identify suitable candidates. This process includes pinpointing the specific operational skills and personality traits needed to be successful in the COO/GM position.  After meeting with the governing board and search committee to understand the specifics and unique considerations of the position, a multi-step research process is undertaken. This includes engaging staff and member stakeholder groups to help identify the right criteria for the position. We continue to collaborate with the club during the extensive interview and placement process, continuing through and past the placement as part of the extensive executive search process.

Our research in COO/GM executive searches has found that the most preferred personality traits relate directly to the need for leaders to demonstrate key components of empathy. Being personable is one of the most mentioned personality traits, followed by needing a professional demeanor and showing effective leadership characteristics.  Being friendly is also important, along with the need to have a natural ability to communicate with members and employees alike. Most importantly, these attributes are distributed across all four groups of the personality traits mentioned above (supportive, inspiring, driver, and analytical), indicating the need for balanced leaders that demonstrate an effective mix of personality traits.

While more than 35 personality traits have been identified as important, there is a high degree of overlap and alignment between the staff and membership (e.g., each group sees professionalism as incredibly important). However, differences also emerge between these two groups. Being friendly was the members’ most important inspiring personality trait while compassion was most important for employees. These differences demonstrate how each group’s preferences are driven by their interaction with the COO/GM (e.g., employees want a leader to show compassion, whereas members want a friendly leader). Personality traits also differ based on the club’s current needs, culture, and other dynamics identified during the search process.

While basic research can identify the unique needs of each club and even potential differences between stakeholder groups, a more detailed process paints a much deeper picture of what is required. Take professionalism, for example.  Everyone knows professionalism when they see it, but how does professionalism relate to other personality traits? Using our advanced analysis techniques, results indicate that professionalism is not simply a construct that exists on its own. When searching for a club leader, professionalism must be demonstrated across multiple other traits, such as how candidates listen, communicate, and how they establish approachability. Crucially, the importance varies across other personality traits, indicating clubs are looking for professionalism as related to some areas more than others.

Like leadership abilities and functional skills, personality is essential for a club to find its next successful COO/GM. Understanding the importance of and interaction between supportive, inspiring, driver, and analytical personality traits is an area that clubs, search committees, and potential candidates would be wise to focus on. While detailed research can help clubs understand unique needs, clubs and candidates should consider that when working with a search firm that emphasizes personality traits as part of their process, they will both be put in a better position to succeed.

Using a research process that goes beyond leadership skills and industry knowledge needed for a position allows search firms to:

  • Truly understand the needs of a club to help identify candidates with the best opportunity for success based upon the culture, situation, and specific stakeholder needs.
  • Understand what specific personality traits are essential for each club and how these behavioral considerations differ.
  • Go beyond the closely cultivated network of contacts looking to transition to seek out passive candidates who are not looking to change but could be interested in a position that aligns with who they are.

If you would like to learn more about our Executive Search services can help your club find its next club leader, please get in touch.

Michael Gregory, Managing Director & Partner
Contact Michael

Dee Anna Clarke, Director
Contact Dee Anna

Dr. Eric Brey, Ph.D.
Contact Eric

5 Tips for “Yes” in Your Capital Call Communications

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People fear change when they don’t understand the reason for it. And when they don’t understand the reason, they resist it.

In our work related to capital investment communications, we find that the vast majority of private club members understand and accept that it is their duty to leave their club better than they found it, with the caveat that the investment they are being asked to make is reasonable and necessary.

While obtaining a positive vote for your upcoming assessment is not guaranteed, getting members to say yes to being assessed can be much more achievable by following these 5 guidelines:

1. Communicate the Need

One of the keys to achieving a positive assessment vote outcome is to clearly communicate the need for the proposed upgrades. Whether your irrigation system is past its useful life and now costs more to maintain than replace or your casual dining area cannot service the demand or still has 1980’s decor, it is important to educate members about the need for the upgrades as well as the benefits that members will receive from them.

2. Engage Members in the Process 

Gone are the days when new amenities being proposed were based on the desires of a board member or two. Today, board members and management teams have adopted a more strategic approach to determining investments needed to ensure their club’s continued success. Club leaders are apt to rely on member surveys and focus groups as the starting point to understanding the need and the desire for capital improvements. It is a good first step, but not the only one. The most effective club leaders prepare preliminary plans and drawings with the understanding that once members have a chance to review the information, there will likely be a need for changes. We encourage clubs to present the plans in multiple meetings with small groups of members. This allows the facilitator to engage each member to hear questions and comments. This method allows the facilitator to control the flow of the meeting and ensure that one or two members are not monopolizing the meeting. Once all meetings have been completed, a recap of the key takeaways should be shared with all members.

3. Don’t Rush the Process 

Typically, the reaction to the introduction of major capital improvements and the associated assessment will be quite mixed. At GGA, we typically find that 20% of members will fully embrace the upgrades and 20% will be adamantly opposed to the plan. The remaining 60% need time to process the information and become comfortable with the prospect of the changes to the club and their budgets. That’s why it is vital to allow time for members to process the information, become comfortable with the plan and consider how it will benefit them. If you rush to a vote, there is a good chance the level of support needed will not be achieved. But if you take the time to communicate how you are addressing member concerns, answer member questions, provide plan updates, then ask for support, you will have a much greater chance of getting to that “yes” vote.

4. Develop an Equitable Payment Plan

The most senior members at clubs are least receptive to paying a lump sum assessment, using the argument that they will be paying for something they will not be able to enjoy for long. To ensure the capital improvement payment plan is not the deterrent to support, many clubs have moved to a “pay as you go” program whereby a small portion of the total assessment is paid in a lump sum, but the remaining assessment amount is paid monthly or semi-annually over three to five years. Not only does this payment option make it more manageable for all members, it also shows that those who will be enjoying it for years to come will assume more of the burden of paying for the plan.  

5. Bring Members Along on the Journey

Just like you, members are overwhelmed by the sheer volume of information that bombards them every day, which means that your capital investment communications need to work harder than ever to break through the clutter. Efforts to keep members informed along the journey to improve their experience should carry a consistent theme, be repetitive and as short as possible.

A clear, consistent communications plan to educate and engage your members in the process of planning your capital improvements will ensure that fear is not the deciding factor of your club’s future.

Interested in learning about GGA’s Capital Call Communications services?

If you would like to learn more about how we can help your club execute a capital call, please contact us.

The Art of Influence – Executive Presence in the Boardroom

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What do people think when you walk into a room, open your mouth to speak, or engage with others? Are they excited for what is about to happen? How do they see you, and how do they experience you? What happens as a result of your presence?

Senior leaders are increasingly discussing Executive Presence – what it is and how to have more of it. No matter how you define it, it has much to do with how we influence others.  To be clear, Executive Prescence is not about how many followers you have on your social profiles but rather, how you connect, communicate, care, and impact others.

In his recent book, “The Gift of Influence”, Tommy Spaulding reveals how we can be more mindful and effective in wielding influence throughout a lifetime of connecting with others. He outlines research that suggests the average person will influence up to 80,000 people in their lifetime – about the size of a football stadium. He suggests that “If you commit to living a life of positive influence, you will never look at your personal and professional relationships the same way again.” “Leadership is not about influence. It is influence.”

Influence has everything to do with leading in the boardroom, the staff room, and beyond. Here are some considerations on how to elevate your presence, your influence and your life.

Trust – The Strongest Foundation

All relationships start and end with trust. Think about the best board relationship of your career or greatest team you have ever been a part of. What was the level of trust?

If you want to build trust with others, make sure you are trustworthy yourself as well as trusting of others. This doesn’t mean establishing blind trust without questioning. It means that we always have the intention of trust.

Years ago, author Stephen Covey likened trust to an emotional bank account. As with a real bank account, we want the balance to be at its highest. And so, it is true with a trust account. When the balance is high, the relationship is easy, more productive, and positive influence occurs. On the other hand, a low trust account breeds an environment of fear, a lack of engagement, negative influence and limited results.

Ensure you are making more deposits than withdrawals into your trust account with others: Be upfront. Be clear with your intentions. Do what you say you will do. Find the answers. Show you care. Acknowledge others.

Communication – A Main Ingredient

Most great influencers are extraordinary communicators. They understand that the words they say are powerful, and the way they say them is even more.  They get to the point – and they have one! Brevity and clarity are their style. They say what they mean and mean what they say. They speak with good intentions. They have the good of the other person and the organization in mind, not themselves. A great communicator uses the language of vision and possibility.

In the leadership development practice, we have a saying “Say Less. Ask More.” The best leaders exercise the skill of listening more and speaking less. They are curious. They don’t have all the answers and genuinely seek them out. They ask powerful questions that engage others, explore solutions, and bring about growth. The focus shifts to others, not themselves.

A positive influencer also knows how their body language and voice add to or detract from their impact. They are purposeful yet speak with integrity and authenticity. They read the room, they remain calm under pressure, and they connect and engage others. Their eye contact, facial expressions and gestures are appropriately warm and powerful at the same time. They influence.

Humility – If You Don’t Have It, Find It

No question, you need to be competent in your role, but do you need to be the smartest person in the room?

Positive influencers own their competence, yet never let their competence own them.

The most purposeful leaders have the gift of humility. They let the results speak. They always give credit where it is due. They show up as competent, kind, caring leaders, and they often get amazing results. Their reputation speaks for itself, without their own input. They are keenly self-aware and always learning and growing.

Are you aware of how you “land” with others? Do you speak the language of team or individual?   What message are you trying to send? Be acutely aware.

The great news about executive presence and influence is that they are learned skills. Start where you are. Dive in. Get feedback from those that you trust. Acquire some training or coaching. Change some habits and see how your positive influence soars – in the boardroom and beyond.

To have a discussion about how GGA’s Leadership Development and Coaching services can benefit your club, contact michael.gregory@ggapartners.com

Inflationary Impacts on Budgeting

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Since 2012, the Federal Reserve has targeted a 2% inflation rate for the US economy; however, recent inflation rates are currently hovering closer to 6%, after averaging 8% in 2022.

These ever-fluctuating inflationary rates are felt deeply in clubs, who are heavily impacted by increases to personnel costs as well as food and beverage and other key supply purchases.  Club leaders are expecting continued high inflationary increases to key departmental expense budgets, including expected increases of 7.3% to payroll expenses and 6.2% to non-payroll expenses.  

Unlike more traditional industries, where pricing strategies can be more nimble to reflect volatility in costs, clubs are generally bound to operate within the confines of an annual budget cycle, establishing member dues rates once a year and leaving limited flexibility to adapt or react as economic circumstances change within a given period. Clubs get one chance to get it right for the year, and live with the consequences of the assumptions and decisions made during budget-time.

Clubs can be best-prepared to addressing these inflationary challenges by being proactive with their budgeting strategy to validate the inputs, and ensuring that they have a robust communication plan in place to support the outputs.

Understanding the specific factors that will impact budgetary line items is the first step towards creating an effective budget, and the key factor that will impact your ability to clearly communicate any resulting pricing changes. Breaking down the specific inputs which have the most significant impact on overall membership dues, whether that be payroll, cost of goods, or other operating items, and getting a clear line of sight to the factors impacting their increases will allow you to budget effectively and provide an opportunity to communicate those reasons clearly, increasing the likelihood of membership acceptance of the changes. For instance, rather than applying a consistent inflationary rate across all line items, consider the specific regional and cost-specific information that will impact individual line items.

In line with the budget for the year, be sure to prepare a robust communication strategy to prepare members for the upcoming changes. Leverage external data points wherever possible to support the assumptions you are making, and ensure you highlight the wins wherever you can. As the cost of labor goes up, the relative cost of technology to replace that labor goes down. Consider opportunities to leverage technology to supplement / support (not replace) human capital and share that with your membership.

Whether investing in technology to supplement your variable workforce, altering your menu design to improve margin yields, or ensuring that your labor costs are keeping up with regional trends to secure your workforce for the longer-term, the more you can communicate with your membership, the more confidence you can have when it comes time to implement the impact of these changes via dues increases.

Rather than reducing service or programming offerings, the vast majority of clubs have responded to increasing costs by passing along these inflationary increases to their members.  While inflationary pressures are certainly widespread, and members can be expected to be generally receptive to the idea of resulting cost increases, the more diligence that can be demonstrated by management throughout the budget process, the greater the membership buy-in is expected to be, and the less the membership resistance you can expect to hear.

Inflationary impacts are certainly being felt far and wide throughout the industry, and can make club budgeting challenging. Being proactive with your budgeting strategy, knowing how to respond to inflation,  and communicating clearly and effectively with members can help to mitigate effects that result from inflation.

How GGA Partners can help your club address inflation

  • Investigate ways to improve your cash flow.
  • Explore ways to reduce your debt payments.
  • Make suggestions to make your budget more inflation-proof.

Contact us today to discuss how we can help.

Online Voting, Explained

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The Covid-19 pandemic accelerated digitization across many sectors, inspiring many to wonder: why didn’t we do things in this way before? This is indeed the case for electronic voting. Many clubs implemented electronic voting, albeit by necessity, to navigate complex challenges brought on by the pandemic. However, electronic voting is still relatively immature within the club industry. If you are curious about electronic voting, we answer five common questions that help to paint a clearer picture of electronic voting.

Why do online voting?

With the option of electronic voting, participation rates traditionally increase. Instead of needing to attend a meeting and fill out a paper ballot, members can access the ballot at home on their computer or at work on their phone. Voting can be completed in minutes and members receive a virtual confirmation assuring them that their vote was tallied. Higher voter turnout means higher levels of engagement among your members, and a simpler democratic process.

If planned properly, online voting can also be much more cost-effective. Your club can save on printing and mailing costs that would not be required through an online platform. It can also allow your club to allocate time and human resources to other areas of club operations.

By moving ballots online, elections are transitioned to a safe and secure platform, used routinely by private organizations and corporations. Online voting allows an ongoing audit trail that virtually eliminates the potential for human error which would not exist with paper ballots.

Online voting is customizable and implementing changes to your election is simple. The online voting system can be set up according to specifications provided by your club. This includes branding the voting website, ballot loading, preparation and loading the list of voters, and managing authentication of voters. When it comes time to vote, a mass email is distributed to all electors with a direct link with unique authentication credentials encrypted into it, making it easy for the member and safe for the club. Once the vote has been completed and the results are analyzed, online voting provides clubs with faster and more accurate tabulation of results, saving the club time and resources. The online platform also allows for further demographic segmentation while maintaining voter anonymity.

Do our bylaws align with online voting?

When first adopting an online vote, many clubs notice that their bylaws make it complicated to shift their voting to an electronic platform. Most clubs’ bylaws were written before the introduction of online voting, and therefore, may not adequately account for it. Just because a club’s bylaws or state statutes do not restrict a club from conducting a vote online, it does not mean their bylaws are optimal for doing online voting. Although many clubs are technically permitted to conduct online voting, their bylaws may prohibit them from doing so in an efficient and logical manner.

Typical barriers and bylaws that may interfere with a smooth online voting process may include:

  • Proxy requirements and the format of the proxies, i.e., general proxies vs. directed proxies.
  • Critical timing requirements and limitations on when proxies can be collected and when voting must occur.
  • Explicit requirements to issue paper notices, ballots, or proxies.
  • Specification of who is authorized to administer, issue, or receive proxies and ballots.

So, what is a club to do?

A change to your bylaws may be required. To successfully implement online voting, advisors can help clubs identify the required changes to their bylaws that are more compatible with online voting.

Who will be responsible for planning the vote?

Elections vendors offer support and guidance on the logistics and technical aspects of how the voting will occur. Votes require strong leaders/leadership team to plan and coordinate various aspects of the vote, such as communicating with members, producing meeting notices and information circular packages that are cohesive with the online voting process. Involving the club’s legal counsel is always advisable to ensure compliance with bylaws, state statues, and any other important requirements.

How should members be prepared for online voting?

It is recommended to initially implement online voting for a ‘low risk’ vote, such as an AGM vote where there are no polarizing motions or elections tabled. Although hybrid votes can be more complex, when they are set up appropriately, they can be a good first step for members to become familiar with the process. For example, in a simple vote with no proxies, members could be mailed a paper ballot or be given the option to vote online. The outcome of how many people elect to vote online vs. by paper can provide you with a good gauge on what your members are comfortable with. You can also observe turnout from other online engagement efforts, such as member surveys.

What vendor or service should I use for online voting?

There are many vendors, each of which excel at different aspects. Important factors to consider when selecting a vendor may include:

  • Budget
  • Structure: whether the vote will be a hybrid vote or exclusively online.
  • Vote requirements: will the voting experience need to be integrated with the technology being used to run the meeting via video?

Ready to implement electronic voting for your next vote?

To learn how our online voting program will benefit your organization, contact martin.tzankov@ggapartners.com

What Do Members Want?

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Some club leaders believe that it is a fool’s mission to try to understand what members want.

In fact, it is quite simple…you need to ask members what they want. Michael Gregory and Dr. Eric Brey at GGA Partners can tell you with certainty that developing a broad and deep understanding of members’ wants, needs, expectations, and fears is a matter of faithfully applying proven practices of attitudinal research.

Dr. Brey, a PhD-accredited professor at the University of Wisconsin – Stout, is an expert at leveraging analytics to implement dependable customer-centric strategy and hone it on what truly impacts satisfaction. And it all begins with asking members what they want. Sometimes referred to as qualitative analysis, members’ viewpoints are normally collected within small groups and sometimes validated in expanded follow-up listening sessions. In his work with GGA, Dr. Brey has implemented this science within private clubs where understanding members’ attitudes are so important.

In order to measure what matters are of greatest importance to a given club’s members, attitudinal surveys prove to be a trustworthy tool. Establishing the proportion and intensity of members’ attitudes has become even more important in a time when members want to know that their viewpoints were taken into account.

Gregory, having worked at GGA since 2007, is expert at administering private club surveys. He emphasizes that attitudinal surveys in private clubs are essential because the relationship between the club and its members is an emotional and often intense one. In recent years, club leaders have become more reliant on member surveys as the sophistication of such surveys goes deeper into members’ viewpoints. Not the stuff of satisfaction surveys, an attitudinal survey seeks to quantify and measure members concerns and expectations, willingness to fund certain capital projects, and identify the characteristics – by analyzing underlying data – to provide club leaders with clearcut insight into what members want. Five factors that are consistently revealed in member surveys include:

 

  1. When factures occur in private clubs, they are often on the lines of gender and generation.
  2. Normally, the most satisfied members are the newest and the least satisfied members are the most tenured in the club.
  3. Older (in age) members are least supportive of capital projects and debt.
  4. Younger members are eager to see regular capital improvements.
  5. Women tend to be most alert to the club’s value system…”are we what we claim to be?”

Insights vary from club to club and require careful and objective analysis of underlying demographic data to enable the board to understand how members align and differ on certain topics. Dr. Brey advises careful analytical discipline and measurement. “There is no substitute for patient and transparent data analysis,” he says.

At the end of the day, Brey and Gregory confirm that it is possible to know what members want. One simply needs to ask the right questions in the right way.

This piece was authored by Henry DeLozier, Partner, for the National Club Association‘s Winter 2023 Issue of Club Director Magazine. 

Connect with Henry – henry.delozier@ggapartners.com

GGA Partners Joins ClubWorks’ Network of Excellence

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ClubWorks adds world-class management consulting firm to its platform of best-in-class companies, and expands its strategic leadership team with the acquisition of GGA Partners.

 

WEST PALM BEACH, FLA, March 7, 2023 – ClubWorks, a premiere private club and high-end hospitality-focused professional services platform, elevates its rapidly expanding service offerings with the acquisition of GGA Partners (GGA), a preeminent international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts and residential communities.

Through this investment, ClubWorks will help accelerate the expansion of GGA’s service offerings to the ClubWorks client network, including strategy and operations consulting services, transaction advisory services, as well as executive search and advanced analytics services while expanding the firm’s market-leading research efforts. GGA’s leadership team will add further expertise to the ClubWorks Board of Directors, who are committed to the continued growth of this professional services platform.

“The unmatched strategy, finance and analytics expertise of GGA will benefit our clients immensely and makes them the perfect addition to our impressive portfolio of ClubWorks companies,” said Michael Leemhuis, Chairman and CEO, ClubWorks. “This acquisition furthers our mission to build a world-class professional services platform while adding some of the best strategic minds in the private club and hospitality world to our leadership team.”

As part of the Clubworks’ Network of Excellence, GGA will retain its highly respected brand, leadership team and professional staff to continue delivering high-quality, impactful strategic solutions to its clients. The additional resources and synergies afforded through the ClubWorks platform will also be incredibly impactful for the broader investment, real estate, hospitality, municipal and association related market segments currently served.

“This investment is strategic on many fronts, as the collective experience and expertise of the ClubWorks companies will help GGA better serve our clients by addressing often requested, and required, services by clubs and hospitality businesses around the globe,” said GGA Founding Partner Stephen Johnston “Our existing clients will continue to be served by our entire GGA team, now stronger than ever, and will have access to even more exceptional research, support and additional services.”

About ClubWorks
Formed in January 2022, but combining more than 100+ years of history and operations, ClubWorks is a growing professional services platform dedicated to the private club and high-end hospitality industry that is building an esteemed “Network of Excellence” across a variety of service offerings. Through its subsidiaries, Peacock + Lewis, JBD JGA Design and Architecture, Visionary Spectacle Studios, and now GGA Partners, ClubWorks is focused on providing top-quality deliverables and a best-in-class experience to its growing base of global clients which includes private clubs, restaurants, high-end hospitality, and select high-end residential clients. For more information on ClubWorks, visit www.clubworks.com.

About GGA Partners™
GGA Partners is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts and residential communities. They are dedicated to helping 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, their global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success. For more information on GGA, visit www.ggapartners.com.

Media Contacts

ClubWorks
Henry Wallmeyer
President & COO
hwallmeyer@clubworks.com
202-400-1825

GGA Partners
Craig Johnston
Managing Director & Partner
craig.johnston@ggapartners.com
647-822-8972

A Club Leader’s Perspective [2023]

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A Club Leader’s Perspective: Emerging Trends & Opportunities for 2023 

Latest research produced in collaboration with the Club Management Association of America examines  pressing needs in club management.

In brief:

  • Industry survey of over 230 club leaders across the US highlights the perspective of club leaders on the current challenges facing the industry.
  • A Club Leader’s Perspective explores the state of the industry from the perspective of those in club leadership roles, and what influences their decisions.
  • Club leaders weighed-in on emerging trends and challenges across five primary areas:
    • Industry outlook 
    • Access and utilization
    • Membership experience insights
    • Capital and finance
    • Inflationary impacts on service

We’ve surveyed club leaders regularly since the start of the pandemic, including in-depth looks at challenges, sentiments and opportunities over the past two years. During this time, many clubs faced an global health crisis, supply chain interruptions, labor challenges and escalated membership levels. In 2023, optimism regarding the economic outlook of the industry remains high despite looming recessionary impacts.

Access the full report for further insights.

Read now

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping 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; Phoenix, Arizona; Bluffton, South Carolina; and Dublin, Ireland. For more information, please visit ggapartners.com.

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

About CMAA

Founded in 1927, the Club Management Association of America (CMAA) is the largest professional association for managers of membership clubs with 6,800 members throughout the US and internationally. Our members contribute to the success of more than 2,500 country, golf, athletic, city, faculty, military, town, and yacht clubs. The objectives of the Association are to promote relationships between club management professionals and other similar professions; to encourage the education and advancement of members; and to provide the resources needed for efficient and successful club operations. Under the covenants of professionalism, education, leadership, and community, CMAA continues to extend its reach as the leader in the club management practice. CMAA is headquartered in Alexandria, VA, with 42 professional chapters and more than 40 student chapters and colonies. Learn more at cmaa.org.

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An Anatomy of Two Committees

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Of all the club committees, none is more important that the nominating committee and none is less important than the executive committee. You may think it a radical thought, but before you dismiss it, consider the following rationale. One of the five principles of good governance is electing board members on their merits and not on their popularity, personal agendas, seniority or some other basis. Honoring that principle is best achieved via an uncontested election, where the number of candidates equals the board slots to be filled. An uncontested election requires two essential ingredients:

*An independent, objective nominating committee.

*A board-established profile that lists the requirements and desired characteristics of board members.”

Member trust in the uncontested election process is directly linked to their perception of the nominating committee’s integrity. To ensure that trust is nurtured, establish your nominating committee using the following guidelines:

Smaller is Better

The size of most club nominating committees is between five and seven members. Because of the high premium placed on the confidential proceedings of the committee, we prefer the smaller size.

Selecting the Chair

The key decision in forming the committee is the selection of its chair. Club bylaws often specify that the chair is selected by the president. Others may identify the immediate past president as the chair. Of the two approaches, we favor having the president select the chair, primarily to avoid the appearance of a self-perpetuating board. However, the importance of this decision calls for a board-approved set of criteria for the chair. For example, the board may require the president to select a chair based upon their reputation of integrity, independence and objectivity; their understanding of club governance; and their ability to lead a highly confidential vetting process.

Allow the Chair to Select Committee Members

Once the chair is designated, there is the selection of committee members. Some bylaws have the president selecting the committee members. For those clubs whose bylaws are not specific as to how committee members are chosen, we recommend leaving that decision to the newly appointed committee chair. If they have been selected using criteria like those listed above, they will recruit like-minded members to carry out this important role.

Define the Ideal Candidates

As important as selecting the right chair and committee members is the process used by the committee to prepare a slate of candidates. The board should approve a profile that includes both required and desired characteristics of board members. Further, we recommend the committee be held accountable to use the board profile to vet potential candidates. A properly formed nominating committee using a board approved process and referencing a board profile is best equipped to select a slate of highly qualified candidates for the board.

The Executive Committee

While the nominating committee has the most important role among club committees, we believe the executive committee has the least. Our concern with a board’s executive committee is that it can become a mini-board, i.e., it can make decisions that are best left to the entire board. One of the principles of good club governance is the board speaking with one voice. Having the executive committee stand in for the full board dilutes this principle and can result in board members not on the executive committee feeling like second class citizens.

Despite the threats to the one-voice principle, executive committees have a long history in clubs primarily for two reasons:

  • There are board decisions that must be made between board meetings.
  • There are matters calling for a group smaller than the board to handle.

Regarding the need for decisions between board meetings, the last two years have demonstrated how easy it is to call an online meeting of the board. If an issue requires a decision by the board, the president can email an invitation to board members and assemble an online meeting within days. Some bylaws require a notice period of a week or two before a special meeting of the board but many clubs have amended their bylaws to allow only a few days’ notice, given the ease with which board members can be contacted and made available for the meeting.

The second rationale for having an executive committee is the occasional need for a small group to handle a particularly sensitive issue or provide the general manager with counsel on a policy or a decision. While a smaller group is more efficient and may be more secure with sensitive information, we do not see an executive committee as the one-size-fits-all group. For example, if the behavior of a staff member may result in adverse publicity for the club, it may be best to assemble a group of board or club members based on their expertise and not their office. Similarly, if the general manager needs counsel on handling an issue or transaction, they can call on board members or club members best suited to offer the advice.

A final point: Although the common board size is nine members, many clubs have 12 or more members. These larger boards are more likely to lean on an executive committee for efficient decision making. However, the more these larger boards rely on their executive committees, the more likely the non-committee members will feel left out. If a board is unwieldy, reduce its size rather than creating a two-tiered board by depending on an executive committee to make intermediate decisions.

This piece was authored for the National Club Association‘s Summer 2022 Issue of Club Governance. 

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