Governance in private clubs can too often resemble what is seen on the evening news: factions, resentment, distrust, skepticism, cynicism. In troubled times, sound governance is essential.
In our continuing Whitepaper Series, Senior Partner Henry DeLozier highlights the three keys to effective governance and proactive steps leaders can take to address and improve it at their club.
At GGA Partners, we have watched the pandemic create innovative opportunities and innovation in clubs unlike what we have seen in many years.
In our continuing Whitepaper Series, Senior Partner Henry DeLozier reminds managers and club leaders how critically important innovation is, especially during these pandemic times.
However big or small the event, there’s always reason to inject creativity and innovation to make it memorable for all involved. This is an approach Medinah Country Club has pioneered for over 95 years. So, what are they doing, and what can you learn? We turned to General Manager and Chief Operating Officer, Robert Sereci, for the answers.
While we have brought innovation to many events, at Medinah Country Club we view innovation as a strategic advantage that we leverage across all facets of club operations. From food and beverage to technology, innovation plays a critical role in our success.
Despite our significant recent investments in amenities, we realize that, ultimately, these amenities are only vehicles to facilitate relationships and strengthen our community.
Our approach to events focuses on larger, traditional club events like Easter, Mother’s Day and Halloween, while consistently developing smaller events, focused on appealing to a targeted demographic who share similar interests and passions.
We also work around the seasons. Many are surprised that a golf-centric club like Medinah hosts events around ice skating, sledding, and cross-country skiing in the winter months. But this keeps members engaged, mixing with other members and makes the club more a part of their everyday lives. We even host roller skating, where we convert our ballroom into a roller rink!
Family involvement is also key, and offers an opportunity for us to be creative. For instance, we invite families to join our executive chef for an educational experience as he taps our trees for maple syrup, to learn about egg production from our farm hens, and to learn how honey is harvested from our three bee colonies, all on our club property.
We also sprinkle in ingredients which are true to Medinah, and showcase the best of what we have to offer. Our Medinah Food Truck regularly roves around the property serving parties, and we use our portable wood burning oven or smoker to supplement indoor and outdoor club events.
In our case, my team and I drive this commitment. I suspect this is not that different for most other clubs. Club Boards genuinely demand innovation from their management team, yet they embrace and find comfort in conformity. Clubs are notorious for conforming with the majority and have learned to embrace the status quo in order to align with the opinions and behaviors of neighboring clubs. This pressure to conform can have a significant negative impact on management’s engagement, creativity, and ability to innovate, and ultimately the club suffers.
Innovation is not important for innovation sake. As more clubs expand their offerings and amenities become ubiquitous, we, as clubs, must shift our focus from building structures to building memories. Like the corporate world outside our gates, we have migrated into an “experience economy,” where our members place greater importance on experience. Fitness centers, spas, and racquet courts are now the norm and very few members get impressed by these shiny new toys. Today’s members are looking for, and paying for, memorable unique experiences. These unique experiences are what makes successful clubs stand out in the eyes of the current and prospective membership.
Capturing ideas is the easy part – getting buy-in and execution is the hard part.
There is no shortage of ideas. My team and I look not only to our peers for ideas, but more importantly, we look at what others outside of our industry are doing and determine if and how it is applicable to us. The truth is, many of our innovative ideas at Medinah may be innovative for the club space, but in reality, they are almost common practice in the public space. Clubs are too quick to dismiss ideas from other segments by thinking “that would never work here.” While that may sometimes be true, we seek out those principles or ideas that would work and determine what we would need to do in order for those ideas to be successful at Medinah.
While many clubs go out of their way to squash nonconformity, at Medinah, we encourage it. I genuinely promote constructive nonconformity. That type of thinking is how we introduced the Tiny House Hospitality Package during the recent BMW Championship hosted at Medinah. The goals were twofold:
How can we create a unique memorable spectator experience and capture additional hospitality at a mid-range price point? The answer – place several Tiny Homes at specific locations on the golf course.
This was the pitch – Ever dream of watching a professional golf tournament from your backyard? Now you can. Introducing the Tiny House Hospitality Package for the 2019 BMW Championship. Invite your friends and colleagues to watch the top 70 players tee off just feet from your fenced backyard. In addition to witnessing the tournament up close, you will have access to a tiny house with all the accommodations of a home.
Not only was this the first time a Tiny House has been used in this way, but also the first time a Tiny House has been featured on a course during a professional tournament. This was a massive success and will likely now be a standard hospitality offering for future tournaments. The positive press we received was truly remarkable.
In order to foster innovation, you must have a culture that not only encourages those who are innovative, but, more importantly, doesn’t penalize those who fail. Too many clubs focus on the ideas and innovation, and not enough on developing a culture of trust, where innovation and creativity is celebrated.
As the COO at Medinah, I have worked tirelessly to strengthen the trust between myself and the board. The board has provided me with a large safety net. In return, I have provided my team with an even larger safety net, allowing them to take risks and challenge the status quo. There are very few mistakes my team can make that I cannot get them out of.
Clubs must become comfortable with the unknown. If you want to accomplish something unique and memorable, you must be willing to take on risk. In general, clubs are culturally rigid and, as a result, are very risk averse. Club boards and members have a very low tolerance for failure and so club managers take fewer risks, thus, innovation comes to a standstill. Arguably, clubs with greater recognition and resources can afford to take more risk, but I believe the exact opposite to be true. When a small, unrecognizable club fails, the city may be aware; however, when a club with a global brand fails, the whole world will know.
If you’re to succeed in driving change at your club, you need a champion of innovation – the person who makes things happen. But what if that person doesn’t exist? GGA’s Bennett DeLozier advises on what an innovator looks like, and how to move forward if you don’t have one.
The Importance of Innovation as a Change Catalyst
Last fall GGA reported its preliminary findings from a survey of roughly 400 club managers who were asked to weigh in on the topic of innovation. Feedback from participants, all of whom are members of CMAA, placed emphasis on two key themes: first, that innovation is crucial for the future of club management and, second, that clubs need to improve when it comes to innovation.
Despite overwhelming majority agreement on the importance of innovation, a closer look at survey findings shows a stark contrast between theory and practice.
Research revealed that even managers who believe innovation is essential to the long-term success of their clubs do not regard themselves as particularly innovative. They believe the club industry lags behind other sectors when it comes to change. They say they would like to catch up in the areas of marketing, communications, technology, food & beverage, and strategy, but report they are hampered by resource constraints, cultural opposition, and a lack of effective infrastructure. Even many clubs that do prioritize and pursue innovation are operating without a deliberate strategy.
To translate ingenuity into business strategy, managers believe that a broader cultural endorsement is needed within their clubs to support, enable, and nurture innovation. However, affecting cultural change from the top down, with reliable bottom-up support, is no easy task.
Queue “the innovator”: the champion of change, the person who can make things happen by putting theory into practice to achieve positive outcomes. Who might this person be and what does their skillset look like?
And, importantly, what do we do if we can’t find them?
The Mark of the Innovator
To be effective in driving change requires tremendous leadership, so our innovator must first have the character of a leader. This is a person who also possesses the uncanny ability to see unseen opportunity, the right balance of knowledge and charisma, an adeptness at bringing people together to work toward a common goal, and an aptitude for putting plans into action and getting the job done.
This person is a synthesis of four key archetypes:
1. The Visionary – A person with the ability to discover opportunities and inspire others to pursue them. One who can see the possibility in a given context and hone in on the most important insights in order to identify unmet needs and valuable problems to solve. They develop meaningful solutions to address significant club problems. Further, they have the capability to explain the nuances of the value proposition, and can motivate key decisionmakers to agree that an innovation initiative is worth pursuing.
2. The Collaborator – A person who can manage change by stimulating effective teamwork and bringing cohesion to the group. A charismatic and daring leader, this person can encourage action through trial-and-error by creating an environment that is conducive to change and views failure as a necessary and educational part of the innovative process. They are a skilled networker and an effective communicator who can muster the necessary resources to get the job done while keeping everyone on the same page.
3. The Thinker – A person who is a natural learner with a deep curiosity about any ideas, products, technologies, concepts, or approaches which could increase the chances that their undertaking will succeed. This individual is willing to explore opportunities as they present themselves, continually pursues new ideas and quickly integrates learnings from multiple sources of information.
4. The Executor – A person with the ability to ensure that rubber meets the road. One who can make quick decisions amidst uncertainty while maintaining realistic progress towards the targeted goal. This individual can translate ideas into an achievable sequence of activities and is often the first to shake things up and challenge the status quo. They can persevere through setbacks and readily adapt plans to new conditions, variables, or requirements.
Help Wanted: Club Innovator
Armed with an understanding of the traits which drive the most successful innovators, club leaders can begin to seek out their champion of change.
Where will they find “the innovator”? Do they exist?
Naturally, it may be tempting for clubs that are hoping to deliver on important initiatives to seek out a talented individual with a track record of high-performance and success. However, it is exceedingly rare that one person will possess the full range of skills needed to innovate successfully. Innovation requires skills and mindsets that are often underdeveloped even among the highest performers.
Rather, clubs should reframe their search for “the innovator” from an individual to a team. A carefully constructed and well-balanced team that brings together the various innovative traits and personalities can compensate for the rarity of a “true innovator”.
Innovating for the Future
Adopting a team-based approach to innovation will increase the likelihood of sourcing the necessary talent, as well as the likelihood that innovation initiatives will succeed.
Returning to the survey findings, the top three challenges which club managers say inhibit, deter, or prevent innovation are: (1) resource constraints such as budget time, space, people; (2) social or cultural opposition to change or new ideas; and (3) lack of structured innovation processes or procedures. These deterrents are often bigger than any one individual’s performance capabilities, and reinforce the need for an innovator group.
The top three ingredients which managers identify as important for innovation are: (1) the right culture to foster and support innovation; (2) a willingness to change norms and take risks; and (3) strong visionary business leadership. These elements add up to a culture of strategic thinking. This type of club culture encourages new ideas, supports experimentation, solicits group input, and is characterized by undaunted, resourceful leadership who are willing to take calculated risks with the support of others.
Understanding the traits of the innovator and the need for teams to have a balanced composition of these traits can help clubs become better and faster innovators. By identifying and encouraging people within the club who possess these skills, then steering them into supervisory roles where they can put these skills to work and also learn from each other, clubs can begin to build an academy of innovation leaders who will continue to drive positive change into the future.
This article was authored by GGA Manager Bennett DeLozier.
