Tag: Club Governance

Where Governance & Strategy Converge

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Peter Drucker famously advised, “Culture eats strategy for breakfast.”

And he was correct. In a private club “culture” is governance. Club leaders do well to place themselves and their clubs at the intersection of governance and strategy. Five keys for clubs that master blending governance and strategy are shown below:

1. Be intentional. Making your club’s governance better – more trusted…more transparent…more business-like – is one of the primary goals.

Sound and trustworthy governance follows business planning that is organized, deliberate, and time oriented. In day-today parlance it is a matter of telling people what you will do and doing it to the best of your ability. Sound strategic planning for a private club involves: (a) informing members as to what the club’s leaders will do, (b) providing timely updates to inform all members, (c) adjusting to changing or emerging circumstances, and (d) executing a thorough plan that has been shared with all members.

By definition, strategic planning is a process-driven method for identifying key goals and objectives and the methods that will be used to answer the question: what?

2. Build the business case for sound governance. Show how strategy delivers and keeps your club’s members engaged, happy, and supportive. Most club members want to know several simple things: (a) what the Club stands for – as described in its mission, vision, and core values; (b) the primary goals that their board will pursue to deliver on the club’s promises; and (c) accountability by the board to the general membership for the decisions that are made with their resources if time and treasure.

“We need to decide who we want to be when we grow up.” This over-simplified statement is often the one used by club members when describing club’s which lack clearly stated and understood purpose. Club leaders do well when they can clearly state the club’s purpose.

The business case for sound governance involves reliable financial performance on which most members place great importance and the assurance that “the club will continue to be what I want it to be.” Since clubs evolve in real time, club leaders must regularly update and revise the club’s purposes to ensure that the club remains relevant to most members.

3. Set a process map and timetable. Trustworthy, transparent governance requires stating one’s intentions and reporting regularly in a time-oriented manner. Stated simply, “plan your work and work your plan.”

Process maps are everyday corporate tools which provide structure, organization, time references, and accountability. The most useful process maps used in private club settings – such as a GANTT chart – show (a) what is to be done and (b) when it is to be completed. Nothing complicated here.

Timely updates which are redundant messaging using multiple media – such as email, hard copies, and social media links – help interested members to understand how the club is being effectively governed and lead.

4. State the strategic goals clearly and simply. Best practice goal setting relies upon four to six annual strategic goals. Select the goals that will most effectively move the club forward constructively and address the club’s primary needs.

Review the difference between strategy and tactics to ensure that your club’s goals are not tactical. The operating or business plan are the place for the tactical objectives. A key to dependable governance is the board members’ ability to remain focused on the big-picture strategic goals.

5. Measure and report the board’s performance on a strategic scorecard. Demonstrating to ordinary members of the club that they board understands that it is accountable to members is a cornerstone for sound governance.

Keep score on the four to six strategic goals and update the scorecard quarterly. In addition to simple email blasts, conduct quarterly meetings with members to update them regarding strategy…and don’t be dragged into the tactical weeds with concerns of the day.

The intersection of governance and strategy defines the future success of your club.

GGA Partner Henry DeLozier penned this article for Boardroom Briefs. It appeared in the August 3, 2024 edition.

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.

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 for the National Club Association‘s Summer 2022 Issue of Club Governance. 

Board Room Best Practices

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In partnership with the National Club Association (NCA), we are pleased to release the inaugural issue of Club Governance, a publication focused on the fundamentals for effective club leadership developed to provide key insights into pressing board room issues and outline board room best practices to effectively govern your club.

In our inaugural issue, Henry DeLozier and GGA’s governance expert Fred Laughlin, discuss the following topics:

Three Keys to Effective Governance: Who Serves on the Club Board?

A Model for Club Governance: Policies and Practices of High-Performing Boards

How to Build a Board of Directors: Selecting Your Dream Team

Building Accountable and Transparent Boards: The Board’s Path to Excellence

Gaining Governance Consistency: How to Reduce the Annual Speed Bump

A Case Study of Good Governance: Greensboro Country Club

NCA members will receive Club Governance semiannually as a special insert in Club Director magazine. Through our partnership with NCA, we are making each publication available to our valued clients.

Read or download Club Governance here

A print version of Club Governance is available to GGA Partner clients. If you would like us to send one, please provide your name, club name and mailing address via email to linda.dillenbeck@ggapartners.com.

GGA Partners Renews Legacy Alliance Partnership with the National Club Association

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Top corporate partnership demonstrates GGA’s commitment to supporting the advancement of clubs nationwide.

(Washington, D.C., May 17, 2021) – The National Club Association (NCA) announced that GGA Partners Inc. (GGA) has renewed its corporate partnership with NCA at our top corporate partnership level, Legacy Alliance Partner, for three years. As a Legacy Alliance Partner, GGA will continue to provide industry-leading resources to NCA members in an effort to strengthen and advance clubs nationwide.

GGA is an international consulting firm and trusted advisor to many of the world’s most successful private clubs. Its global reach and wide-ranging experience allow its professionals to deliver proven best practices and innovative concepts to clubs of all types.

For NCA members, GGA will continue to be the source of data-driven strategic solutions that consider the unique market, financial, operational and governance circumstances of their clubs.

“We’re thrilled to continue to better serve the club community with industry leading education resources through this powerful partnership,” said NCA President & CEO Henry Wallmeyer. “GGA’s expertise in critical areas like market analysis, financial and operational analysis, governance, and strategic planning provides clubs of all kinds the framework they need for sustained success.”

“NCA serving as the foremost club authority on COVID-19 is emblematic of their visionary leadership throughout our partnership,” said GGA Partner Henry DeLozier. “We are pleased to continue our long-standing partnership and eager to provide more value for the club community.”

As a Legacy Alliance Partner and lead sponsor of the NCA Board Leadership Institute, GGA will benefit NCA club members through numerous sponsorships, research and educational initiatives, including:

 

  • Hosting the Club Governance Symposium during NCA’s annual National Club Conference.
  • Sponsorship of NCA’s Board Leadership Institute, a leading resource for club board members.
  • Co-publishing a new joint periodical, Club Governance, to provide club leaders with industry data, case studies and best practices to improve club leadership, strategy and governance.
  • Sponsorship of NCA’s Club Governance Standards, a collection of whitepapers designed to educate and guide club boards on specific issues.
  • Presenting the Club Leadership and Governance Webinar Series focusing on improving the function of club boards.

 

About the National Club Association

The National Club Association (NCA) has been the advocate for the private club industry in Washington, D.C. for 60 years. As the voice of private clubs on Capitol Hill, NCA ensures that club concerns are at the forefront when legislative and regulatory issues affecting the industry are being decided. In addition, NCA provides club leaders an outstanding array of resources on club industry trends, governance best practices, legal and operational matters, and ways to strengthen club leadership. For more information, please visit nationalclub.org.

 

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. The firm is 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.

In Pursuit of Innovation

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GGA Partners Releases Innovation Whitepaper as Part of Thought Leadership Series

‘In Pursuit of Innovation’ aims to provide managers with guidance to unlock creativity

TORONTO, Ontario – GGA Partners, a global consulting firm, has released In Pursuit of Innovation, the fourth in its series of thought leadership whitepapers. This authoritative guide explores how surviving in today’s competitive landscape depends on the ability of clubs and organizations to unlock their creative potential and offers up several guidelines to allow freedom of thought and imagination.

In Pursuit of Innovation highlights the way companies must continuously transform in order to survive and how a constant pursuit of innovation will guard against failure, whether gradual or sudden.  The paper clarifies exactly what constitutes innovation, where it comes from, and how club leaders can practice innovative thinking to unlock a culture of creativity.

“Our experience with thousands of private clubs over nearly three decades shows us that without innovation clubs become stale, membership falls until it eventually flatlines, competitive advantages diminish, members become dissatisfied, and talented staff look elsewhere,” explained GGA Partner Henry DeLozier, one of several authors of the piece.  “Innovation can come from anywhere inside an organization, and we think it should be encouraged from all corners, from the folks raking bunkers to the person answering phones to the accountant balancing the books.”

Innovation happens at the intersection of problems, opportunities, and fervent minds but must be deliberately sought, practiced, and encouraged at all levels. “It’s normal in any business to want to maintain the status quo. It’s comfortable, it’s safe, and it’s easier than making changes,” said DeLozier. “In reality, the status quo only works for so long. If you’re going to grow, you must innovate.”

In Pursuit of Innovation illuminates four common roadblocks to an innovative culture and identifies the steps necessary to unlock a culture of creativity.

In addition to innovation, GGA Partners has published new whitepapers on strategic planning, branding, and governance which are accessible via the firm’s website.

Click here to download the In Pursuit of Innovation whitepaper

 

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. For more information, please visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

Leveraging Differences in the Boardroom

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GGA Partners Releases New Whitepaper on Private Club Governance as Part of Thought Leadership Series

‘Leveraging Differences in the Boardroom’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Leveraging Differences in the Boardroom, the third in its new series of thought leadership whitepapers. This authoritative guide explores the benefits of clubs with diverse boards and suggests several steps to take when recruiting with diversity in mind.

Leveraging Differences in the Boardroom evaluates the consequences of unintentionally insular board composition and challenges the idea of “sameness” in the boardroom, which limits the ability of a board to effectively perform its duties and threatens a club’s health and longevity. The paper illustrates how multiple perspectives contribute to greater success in governance and argues for adjusting the profile of a club’s leadership to better serve members and prospects.

“We often see board members with similar professional, cultural, and ideological backgrounds and perspectives,” explained GGA Partner Henry DeLozier, one of several authors of the piece. “Boards that are neither representative of the membership nor reflective of their surrounding community risk losing the opportunity both to serve their current members and to attract new members.”

In addition, the whitepaper encourages that clubs intent on increasing diversity among their board take a holistic, multi-dimensional approach to its creation. “Forward-thinking boards understand that it is the breadth of perspective, not the mere inclusion of various diverse traits, that benefits the organization,” said DeLozier. “In addition to social diversity, professional and experiential diversity are also important in increasing the range of perspectives represented on the board.”

Board diversification is likely to be met with resistance from the status quo, which the paper aims to help club leaders overcome by providing tactics for building a diverse board, developing new board member criteria, and making a commitment to diversity.

In addition to governance, GGA Partners recently published new whitepapers on strategic planning and branding. The firm has announced that another in the series focused on innovation will be published through the third quarter of 2020.

Click here to download the whitepaper

 

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. For more information, please visit ggapartners.com.

Media Contact:

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

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