Tag: COVID-19

When Compliance Meets Health and Safety

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This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Today, Michael Gregory, a partner of our firm, discusses options and alternatives for clubs with pending annual meeting requirements.

With annual meetings and general elections upcoming, how should clubs meet what may seem conflicting obligations?

As the health crisis evolves, so too do the number and magnitude of issues facing club leaders. One that most take for granted – the annual general meeting and member election – now raises a difficult, if not contradictory, predicament: complying with club bylaws and government restrictions while protecting the health of members, families and employees.

First, know the law.

Is your club located in an area with a state or local government order prohibiting nonessential transit or in-person meetings? If yes, your decision is easy: the club cannot hold the meeting, notwithstanding bylaws that may require it.

According to Glenn Gerena, a shareholder at Greenberg Traurig and a community development and hospitality attorney, “If the club cannot have a virtual meeting under law or its bylaws, the board should discuss with counsel whether the government order gives the board a legal basis to hold a meeting on a virtual [platform] and, if not, to reschedule the meeting to a later date.”

If there is no state or local prohibition regarding an in-person meeting, the club should consider whether it can hold a virtual meeting according to its bylaws.

If your club decides to proceed with an in-person meeting, it is important to provide for proxy voting by mail and encourage all members to stay home and to vote by mail. For members who choose to attend the meeting in-person, the club must observe all health and safety protocols as defined and advised by their local government authority.

Should you go virtual?

Deciding if your club should hold a virtual annual meeting should involve discussions with your legal counsel. Counsel should review applicable state statutes, which may require in-person meetings, permit virtual meetings or defer to the club governing documents. The state statute will govern if bylaws directly conflict with it.

For example, most clubs in California have adopted section 7510 (f) of the California Corporations Code, which allows for electronic meeting and voting and, in cases where state statutes and bylaws conflict, the state statutes supersede the club’s bylaws.

Legal counsel also should review the latest state and local government orders related to the COVID-19 crisis.  For example, the Connecticut governor issued an executive order on March 21, 2020, giving corporations the ability to conduct annual and other shareholder meetings by remote means.  Similarly, for clubs in Canada regulated under the Corporations Act (provincial and federal), orders have been announced to allow members to meet and vote electronically.

“If neither the state statue nor bylaws expressly permit virtual meetings, the club’s board of directors should review bylaw provisions governing amendments and board powers to determine whether the board can amend the bylaws to permit virtual meetings and online voting,” adds Gerena.

In uncharted waters, rely on reason and caution.

While all clubs are encouraged to seek legal counsel to inform and qualify their course of action, club leaders should expect to be operating in uncharted waters and seek to act reasonably and cautiously in the current environment.

“If prudence does not make it possible to meet, then clubs need to consider alternatives,” said Van A. Tengberg, a real estate acquisition and development attorney at Foley & Lardner LLP. “I would not recommend deferring the annual meeting and allowing the board to serve longer terms.  If your bylaws do not allow virtual meetings, then clubs need to consider different options that provide members a reasonable and safe process to meet and cast their vote.”

As with all things in this new normal, communication (and even pulse surveys) that increases members’ understanding of circumstances and current limitations will be appreciated and rewarded and, in this case, may even help to mitigate potential future risk.

In an upcoming article, Michael Gregory will discuss options and solutions to complete a virtual annual meeting and an online vote. Contact Michael at michael.gregory@ggapartners.com or 416-524-0083.

Lifting the Fog of Crisis

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This article continues a series of communications from GGA Partners to help leaders of private clubs address challenges arising from the COVID-19 coronavirus that are confronting their businesses and their employees. Today, Henry DeLozier, a partner of our firm, highlights that now is the time to remind members of their club’s relevance and value. 

Lifting the Fog of Crisis: Now is the time to remind members of their club’s relevance and value.

The “fog of war” is a term coined in the 19th century to describe the uncertainty military troops often experience in wartime situations. Amid the deep uncertainty that the coronavirus has brought to our families, communities and businesses, many of us find ourselves in our own fog of war.

As club leaders reckon with the impacts – both immediate and long-term – of the current pandemic, lifting the fog of misunderstanding and encouraging engagement are important to your club’s longevity and success.

Here are two important steps to make your club a beacon of hope and inspiration to club members, their families and friends:

Make your club a positive influence for members.

Members appreciate knowing how the club, its members and staff are responding to current challenges. They are especially interested in how the club is taking care of its employees. In addition to e-mail updates enhanced with photographs and short videos, also consider:

Organizing virtual events. Using such technologies as Zoom and Google Hangouts, host a virtual happy hour. Keep the number small enough that everyone can be part of the conversation. As the organizer, start with a general update from the club and then let members take over with questions and updates of their own. This is an opportunity to lift people’s spirits, so keep it fun as much as possible.

Telling stories that inspire. Tell members about staff who are volunteering to care for others, including other members, while continuing to do their jobs at the club. Many members have special relations with club staff and will appreciate staying connected through stories.

Encouraging members to take away meals and snacks. Brad Bourret, GM at Cabarrus Country Club in Concord, NC, launched Take-Out Tuesdays before the crisis. He now reports that take-out for his club has exploded in volume. In troubled times, keeping connected to the things and people familiar to them gives members a greater feeling of safety and well-being. Think of it as comfort food.

Increase members’ understanding of club matters.

Provide regular updates. These are obviously not normal times, but retaining some level of normalcy is comforting. Members will appreciate knowing what is taking place at their club. Maybe a new freezer has been installed or the locker rooms and bath house have been fully steam-cleaned to ensure the club’s usual high sanitation standards. If spring flowers and shrubs are blooming, send photographs or a short video that reminds members of the natural beauty they enjoy at their club.

Introduce learning opportunities. Many members don’t understand how some aspects of their club functions. For example, club finances, board governance and the process for recommending members are unclear to many members. In addition, basic operations, such as housekeeping standards, the care and maintenance of facilities and kitchen storage and cleanliness practices, are obviously timely subjects. Now may be a good time to capture their attention and communicate important information on these topics through a podcast.

Conduct single-topic surveys. If you want to know what your members are thinking, what questions they have and what suggestions they would like to make, ask them. Short member surveys – which typically require less than 10 minutes – are great ways to update your understanding of members’ wants, needs and expectations.

The most serious crisis most of us have ever experienced has settled a fog over much of our lives, including our clubs. Efforts to lift the fog, including making your club a positive influence for members and increasing their understanding of how the club operates in good times and bad, reminds members of the importance of the club in their lives.

Your club’s relevance is among the many things being attacked by this virus. Now is the time for club leaders to take the steps that keep the club a meaningful and valuable part of members’ lives.

Employee Engagement

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This article continues a series of communications from GGA Partners to help leaders of private clubs address challenges arising from the COVID-19 coronavirus that are confronting their businesses and their employees. Today, Patrick DeLozier, a director of our firm, offers some ideas on keeping the team engaged.

Employee Engagement: It’s now more challenging, but also more important.

At the top of our priority list during these unsettling times is making sure our employees are not forgotten. They need to know that their clubs genuinely care for them and their well-being, and that you are mindful of the economic and social consequences that accompany this pandemic.

You also want to let employees know that they are valued members of a team that needs to stay connected during these tough times, so that they are ready to ramp up full-scale operations once it is safe to do so. Staying together even when you’re apart starts with communications, but also includes working effectively from remote locations and finding balance in a new work and home routine.

Social distancing doesn’t mean social isolation.

Leaders should make sure they are communicating with employees regularly and consistently. There are a number of ways to do this, some that take advantage of technology and others that rely on old-school practices.

You can write personalized notes to employees to keep them up to date on club news and plans. You can do this electronically, of course, which gives you an opportunity to add a video message. But this is also a good time for an old-fashioned handwritten note that arrives in the mail.

For those employees celebrating birthdays and work anniversaries, a phone call is a simple but effective way of showing that they’re a valued member of your team and further establishes you in their minds as an empathetic manager.

Make sure employees are included on any communication sent to club members. Keeping everyone informed at the same time builds trust and the sense that we’re all in this together.

Being comfortable – and productive – at home.

Most of your employees are probably not accustomed to working from home, which means they’re dealing with a new set of distractions—a dog barking, a child wanting attention – while trying to be productive in an unfamiliar workspace. Here are a few suggestions for working remotely:

Create a comfortable and separate workspace. Resist the temptation to pull out your laptop and plop down on the sofa, which makes it too easy to be distracted by other household activities.

Use one of the many video tools, including Zoom, WeChat, Skype and FaceTime to replicate the social interaction and brainstorming opportunities that a meeting at the club would provide.

It’s a balancing act.

Balance your day. Try not to fall into the trap of working too much. Instead, maybe watch an online concert, take an online yoga class or go for a walk with the dog. One of the best things you can do for your employees is to stay healthy, both physically and mentally.

Make time in your workday to speak with co-workers, friends and family about subjects not related to work. Share a funny story or compare notes on a favorite show or movie.

Now’s the time, carpe diem.

How many times have you thought, “If I only had more time, I would … .” Now you do, so take advantage of your down time to plan, dream and innovate. You might consider creating an idea think tank with your team and challenge them to submit ideas that support your member enhancement program. Have department heads dissect their business unit with the goal of improving efficiency, productivity and profitability.

John Quincy Adams said, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Now, more than ever, employees are looking to you for leadership. Those who feel their employers are communicating consistently, openly, honestly and with empathy will stay engaged and return to work feeling connected to a team and a mission.

Because sometimes we just need to laugh…

Sample Coronavirus Planning Framework

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This week GGA Partners continues its series of communications to help leaders of private clubs address challenges confronting their businesses and their employees with three perspectives from the front lines of club management.

Today: Robert Sereci, GM/COO, Medinah Country Club, Medinah, Illinois.

A Comprehensive Project Plan for Responding to Rapidly Changing Circumstances Focuses Efforts and Assigns Responsibility

You can’t predict a crisis, but you can – and should – plan for one.

Having a plan for how to respond in times of crisis is essential to ensuring that all critical action elements are addressed. Equally important, a comprehensive plan helps your leadership team understand their individual responsibilities and the actions for which they will be held accountable. In addition, a timeline sets out clear deadlines and helps track progress toward your goals.

We developed a comprehensive COVID-19 project plan for our leadership group at Medinah and with the help of GGA Partners (with whom we recently collaborated on a strategic planning project), loaded the plan into the Smartsheet software tool to assign tasks, track project progress, manage calendars, and share documents. Below is the template we developed, which we’re happy to share with fellow club leaders.

To see a clean templated version that readers are free to use as a starting point, click here. Users can also download the corresponding Excel export that is editable and able to be imported directly to their instance of Smartsheet (click here to download).

From the planning template, we wrote a summary of the four key elements of the plan. In total, we viewed the actions under each section as a non-negotiable checklist for our leadership team.

Communication

  1. Assemble a COVID communication/response team – Should include members of the management team and the board.
  2. Member Communication – Focus on awareness, early measures and key dates, including club closure, locker and club storage pick up, etc.
  3. Staff Communication – Determine potential payroll taxes relief and other payroll aid tools available and seek legal advice. Identify the work-from-home capabilities and obstacles for team members.
  4. Board Communications – Brief the board and seek approval on immediate priority policy changes required.
  5. Committee Communication – Work with committee chairs to reschedule future meetings and determine conference call solutions.
  6. Other Stakeholder Communication – Plan for reaching out to vendors, prospective members, group reservations and other relevant stakeholders.

Operations

  1. Member Offerings/Venues – Separate into short-term versus long-term. Key checklist items include F&B menu/offering, vendor relationships, golf course opening plan and member access to pick up property.
  2. Cleaning Action Steps – Update the cleaning checklist with added preventative measures and assign personnel.
  3. Facilities – Define the future usage of each core facility at the Club (clubhouse, pro shop, F&B, admin offices) and any policy or function changes required.
  4. Other Operations – Define the operational plan for other areas of the business, including turf maintenance/engineering facilities, prospective member programs and non-member business- related income such as existing bookings for banquets and tournaments.
  5. Staff policy/scheduling and pay scenarios – short-term and long-term policy, and expected costs for salaries of full-time, part-time and seasonal employees (full shutdown vs. partial shutdown).

Financial Impact Planning

  1. Scenario Planning – Identify the most likely shutdown scenarios and model assumptions that have the greatest impact on the financial model (i.e. change in dues, wages, etc.).
  2. Preserving Cash Plan – Review all capital projects, loan schedules, outside revenue contracts to identify ways to conserve cash. Adjust assumptions for new member forecasts and resignation forecasts.
  3. Cost Cutting Plan – Based on the new assumptions for revenue and cash, determine the most prudent areas for cut-backs to payroll, operating expenses, contracts, events, etc.
  4. Revenue Generation Plan – Identify any new offerings the club can provide to support revenue generation, such as meal replacement, to-go orders, limited golf, event catering, etc.

Contingency Plans

  1. Determine a plan for shelter in place – Determine the trigger that would lead to no staff or members on property (i.e. order from city officials) and the time-sensitive steps to be taken in that event.
  2. Determine trigger and plan to close club completely – How does the plan change if shelter in place orders are extended or if a member or employee is diagnosed with the virus?
  3. Determine trigger and plan to reopen club completely – Leadership team develops a back-to- work protocol and a ramp-up plan.
  4. Club Events/Golf Tournament Status – Determine how each scenario above affects the status of scheduled club events that have not been postponed.

A note about Smartsheet: there are several different project planning tools out there, but I am quite fond of Smartsheet (www.smartsheet.com). I use the software extensively for project planning and highly recommend it. From a strategic planning perspective, it has been a great tool for us to keep track of progress on our strategic action plan and to keep our leadership group aligned on performance against our goals.

Because sometimes we just need to laugh …

Putting Planning First

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This week GGA Partners continues its series of communications to help leaders of private clubs address challenges confronting their businesses and their employees with three perspectives from the front lines of club management.

Today: Jan Bloemraad, CEO, The Glencoe Club and The Glencoe Golf & Country Club, Alberta, Canada.

In times like these, the impulse is to act. To take decisive action in response to the enormous challenges the coronavirus has placed at our feet.

But before you do – before you rally your team and charge into battle – my advice is to step back and make sure you have an effective plan in place. That’s what we did at our club, and the decision is paying dividends.

As the pace at which the coronavirus pandemic has picked up speed, it has become increasingly more challenging for business leaders to devote precious time on constructing and reconstructing a response plan. But in our experience, whatever time is lost while planning is more than compensated for in making sure your actions are the right ones.

In our planning process, we have identified three key elements that can have the greatest positive impact on focusing your team, making swift decisions and maintaining the trust of staff and members.

3 Critical Elements to Planning in Times of Crisis

1. Objective Setting.

There is never a more important time for setting objectives and goals than when planning a crisis response. Goals should be focused on immediate-term, short-term and longer-term time horizons.

Our team has organized our goals during this pandemic around five key pillars: communications, which must be open and honest; administration, operations, human resources and innovation.

2. Response Teams.

In times of crisis, an effective approach to organizing involves the creation of special response teams to ensure there is accountability, focus and resources assigned to every primary action required.

It is important to remember that in times of crisis a new layer of organizational structure is required, one that goes above and beyond your normal operating structure.

Our leadership team’s approach has been to assign a champion to each major goal and to form a team under each champion to ensure their work stays true to the goals we’ve set. Each response team ultimately reports to and takes direction from the Senior Leadership team.

3. Decision Criteria.

When circumstances are evolving rapidly and emotions are running high, data and facts are important allies. One of the more time-consuming aspects of planning in times of crisis is the design and development of critical decision criteria.

Having established decision-making criteria tied to objective data and facts sourced from experts are incredibly powerful resources in supporting swift action and building trust.

Our team set out to develop decision-making criteria and critical triggers for every major decision we knew we would face. These triggers, underpinned by data and facts, have guided all major decisions, reduced stress and empowered our team to meet this enormous challenge head-on.

As leaders, our first reaction to crisis is to run into the fire and toward the crisis. But the most important job of leadership, in my opinion, is first to point our teams in the right direction. A plan that embeds these three elements is a good way to focus everyone on the big picture and then on the tasks at hand, so everyone is working toward the same goals.

Because sometimes we just need to laugh …

What we’re going through is obviously no laughing matter. But according to Psychology Today, humor can be a great mechanism for dealing with stress. Jokes and witty conversation even in a time like this can make you feel closer to the people around you. Have you heard the one about …

In Times of Crisis, Customized Communication Is Key

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This week GGA Partners continues its series of communications to help leaders of private clubs address challenges confronting their businesses and their employees with three perspectives from the front lines of club management.

Today: Trevor Noonan, COO, Toronto Club, Toronto, Ontario and president of the Canadian Society of Club Managers.

It’s easy to say and it’s been said so often that it should be hard for any leader to forget: In times of crisis, communication is key.

Three weeks ago, when it was apparent the coronavirus was headed to Canada, I drafted the first of many memos to our members and our team of employees.

Based on what we knew (or thought we knew) at the time, I did my best to answer the most obvious questions: What is coronavirus/COVID-19? How is it contracted? What are its symptoms? What should you do if you think you’re infected? What personal protection measures should you take?

Then I tackled the personal side of the issue: How the club was responding to the threat, and how it was preparing for the possibility of a confirmed case amongst members or employees.

Not being an infectious disease specialist, I looked to outside resources for guidance, starting with WHO, the CDC and the Public Health Agency of Canada. I was also alert to information from other sources. The general manager of the Hong Kong Club was especially helpful in providing real-life experiences I could relate to. I even found relevant information from the property management company that manages my condominium building. Crediting these sources in my memos added credibility, trust and a level of comfort for our team members.

Since those first memos, I’ve written eight more, each customized to a specific group: members, employees and our management committee, plus two more as president of the Canadian Society of Club Managers. At the end of each memo, I said when each group could expect my next communication. This establishes a schedule and lets recipients know that I am going to continue to keep them informed.

I’ve also enlisted members of my management team as content contributors. Their participation promotes buy-in from all aspects of club management and helps them feel part of the solution. In addition, it was important to assure employees that wholesale layoffs were not imminent and that the club would be taking care of them. Early on we had meetings with employees where we asked for their suggestions on how the club should be responding. Some of their ideas were immediately implemented, making employees part of the solution and increasing pride in their club.

In meetings with employees, I do my best to be prepared with answers to the questions I can anticipate. But I quickly learned I cannot anticipate all of their questions, nor will I have all the answers. One phrase I’ve used a few times that’s helped with trust and credibility: “I don’t know all the answers; I’m still learning all the questions.” When you admit that you’re learning, and that you’ll do your best to find the best answers to their questions, it shows your commitment to informed decision-making and adds to their trust in you as a leader.

Of course, we should not overlook another important group in the communications process – family. Your family is going through this too. They’re worried about the virus and how it might affect family members. They’re also worried about club members, employees and their families. Now that I’m working from home (our club is closed), my family sees firsthand the challenges with which my fellow club managers and I are dealing.

You need to communicate openly about the coronavirus, but be sure to focus your discussions on other topics too. Don’t let the virus and its effects consume your entire time while home or your stress will be passed on to others around you.  Finally, don’t forget about taking care of yourself; in other words: practice what you preach.  Those who follow me on social media will have witnessed numerous #selfcare posts, and now with a community challenge to my colleagues and friends. The reaction to this challenge is heartwarming to say the least.

When it comes to guiding our clubs and our people through these challenging times, we’re all learning on the job. The first lesson, as I’ve been reminded, is to promote open, honest and clear communications.

Need something to lighten up your day? What could be better than a good, old-fashioned sitcom? How about 15 of them? Here’s a summary of some of your favorites and maybe a few you never got around to watching. Happy viewing.  

Leading in Challenging Times

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The first in a series of communications to help leaders of private clubs address challenges confronting their businesses and their employees.  

For many club leaders, the coronavirus pandemic is a crisis unlike any other in recent times. When governing and managing through a crisis, speed, collaboration, and communication are key to responding effectively. 

In times of crisis, leaders confront issues and decisions whose urgency is matched only by their complexity. Although this pandemic puts us in uncharted waters, there are lessons we can draw from previous crises. Underpinning each of these lessons is the importance of trust among our stakeholders: members, guests, staff and communities.

Leaders’ success in building and maintaining trust, while guiding their clubs through difficult times, is directly related to three key areas: speed, collaboration and communication.

3 Keys for Leading Through Crisis

1. Speed. We’ve seen the speed with which this virus is spreading across the globe and its impact on lives and businesses. Leaders must do their best to keep pace with their decision-making or risk the consequences of health and safety issues as well as a perceived lack of urgency.

Leaders who act quickly and decisively to frame for their stakeholders how these dynamic circumstances affect their club – and the club’s plans to address each challenge – will build trust and distinguish themselves.

2. Collaboration. In a crisis, leaders’ most valuable allies are those who share their goals and have a vested interest in the same positive outcomes. Collaboration among directors, managers, staff, members and community leaders that leads to efficient decision-making is critical.

These diverse perspectives will help to ensure that key segments and their interests are informing a stable and representative decision-making process.

3. Communication. Effective communications – consistent, honest and transparent – help members, guests and staff remain calm and retain the sense of community that members hold dear. Clear, concise and compassionate communications help quell fears and foster positive contributions from all stakeholders. Just as the airlines have learned to keep passengers informed during long and frustrating delays, leaders should do the same in times of crisis.

Visualizing the Future to Guide the Present

We realize that how you perform and how people perceive your performance may seem a distant priority amidst more pressing needs. But visualizing the ultimate outcome – in this case, how and when you see the club returning to more normal conditions – will help you triage less urgent matters and frame your immediate approach to critical priorities.

Having a vision for what you want the outcome to be, even when it feels like you can’t see beyond today, let alone to the end of a crisis, is a proven strategy among the most successful leaders.

Leaders Distinguishing Themselves

We are currently witnessing incredibly swift, intelligent and impactful leadership across our industry:

  • Leaders are working with local, regional and national authorities to adjust or close their operations in line with specific recommendations or requirements.
  • Leaders are closing their indoor amenities and keeping outdoor activities available in ways that adhere to the social distancing recommendations or requirements, including to-go orders, walking-only golf access, and exaggerated tee time and court booking time intervals.
  • Leaders are adjusting their clubs’ rules and restrictions to compensate for the loss of indoor operations, especially for disadvantaged membership groups.
  • Leaders are closing their doors entirely and taking the member experience – the sense of community and culture – virtual by hosting online chat forums and conducting webinars to keep members and staff informed about ways the pandemic is affecting their club and its operations.
  • Leaders are assembling resource libraries for their stakeholders that provide factual, balanced and rationale perspective. In times like these, it is incredibly reassuring to know that as an industry, we are all working together to support one another.

We are incredibly proud of our professional association partners who are helping to lead the way as valuable sources of information. We encourage you to take advantage of these resources and lean on your friends, colleagues and industry partners. Like us, they want to help.

As an industry, we are fortunate to have such an incredible support network. Below are links to various Covid-19 resource centers:

Coronavirus (COVID-19) Resource Centers

United States

Canada

Europe

And because we can’t (and shouldn’t) worry about this crisis all the time, here’s one way to get away from it all: catch up on the 25 Netflix series that TechRadar says we all “need to watch right now.”

Stay safe and healthy and watch for another crisis leadership update next week.

GGA Partners

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