Tag: governance

How to Elect (and Entrust) the People with Power

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There’s an inherent quirk with how members view authority. Individuals elected for board service are often popular, though not necessarily qualified, and the qualified are not always popular.  Who’s to set the balance?

GGA Partners’ Henry DeLozier spells out the importance and role of the nominating committee; who they are, who they should nominate, and how to make sure they are a trusted agent of members at large.

In most private clubs, it is the nominating committee that sets the future of the club. The proverbial queen- or king-maker, the nominating committee profoundly impacts the tone and tenor of club governance.

In clubs using an uncontested election model (members voting for a selected slate of candidates) for board service, it is the nominating committee which selects the club’s future leaders. In clubs with a contested election model (multiple members run for open board seats and are selected by a popular vote of club members) the nominating committee either proves itself to be a trustworthy and balanced agent of the members or a group of members out of touch with the preferences and priorities of their fellow members.

In either case, nominating committee members should be well-known members of the club recognized for their integrity, character, and good judgement.

Whether your club is fortunate to possess a rich pool of individuals who meet this criterion or not, there should always be a charter in place to help guide the selection process and define the role of the committee once in post.

What other steps can you take to select and shape an effective nominating committee?

Define the limits to authority

The authority of the nominating committee should be defined within the club’s bylaws and/or Board Policies Manual, with the nominating committee charter aligning with these two governing documents.

Nominating committees should not be permanent. Clearly established guidelines must be a part of the charter for the term of service. Typical terms for a nominating committee should range from three to six years – dependent upon the term of service for board members.

On an as-needed basis, nominating committees may evaluate the board’s term limits and modify them if needed for board efficiency or to accommodate the changing size of the board.

Set the selection criteria

The charter should provide the committee guidance concerning the qualifications and/or capabilities required of future board members. For example, most clubs benefit from members with legal, banking / finance, insurance, and public accounting backgrounds.

It is desirable to nominate members whose interests differ to provide balanced and impartial governance. For example, a board made up of all avid golfers can be perceived to be out of balance by members with interests other than golf. Avoid nominating members who represent “constituencies” of like-minded members. Each board nominee should represent and seek to understand all members’ viewpoints.

Selection criteria should be definitive concerning conflicts of interest – whether real or perceived – and all other potential factors that could serve to undermine the credibility of the committee and its nominees.

Ensure candidates bring value to the table

A growing number of clubs have introduced specific requirements of board members, and this is something the nominating committee should focus on when defining methods of recruiting prospective board members. Where they are relevant and a potential source of value to your club, these should feature in the charter.

For instance, you can stipulate that a prospective board member has successfully recruited a member of the club, or you could set policies for the giving or fundraising expectations of board members. Specific, tangible value delivered back to the club which symbolizes a ‘lead from the front’ mentality, setting the tone and an example for members at large.

Not only will this help send the right message, it also ensures each member of the board is accountable, bringing something beyond their invaluable rich experience, guidance and ideas to the table.

The role and responsibilities of the nominating committee are profound and great care and transparency must be given to populating the committee with the club’s most respected members.

Conflict in the Boardroom

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What happens when board members clash, causing conflict, disruption and moving the club backwards instead of forwards?

We outline the dangers of conflict, and advise on how to turn dispute into a positive, constructive outcome and ensure all board members are a true asset to the club.

Effective non-profit boards deliberate as many and govern as one. At least, that’s how it should work. Unfortunately, many club boardrooms up and down the country are more akin to a newsroom; rife with bickering, contempt, and dysfunction.

It’s understandable. Passions run high, these overtake rational, pragmatic logic and suddenly what is intended to be a progressive, forward-thinking environment becomes one paralyzed by indecision.

What should board leaders do in the face of these circumstances? Aside from preventing it from getting to this point, it’s imperative to restore levels of cooperation, deliberation and thoughtful leadership – quickly.

There are two ways of doing this: the first addresses the issues immediately and sets the standard both now and into the future; the second addresses the onboarding process, ensuring all board members are clear in what they are signing up for and what is expected (and not expected) of them at the outset.

The Boardroom Bible

The launch point for improving club governance and reducing boardroom conflict is a Board Policies Manual (“BPM”). Think of it as a boardroom bible, describing the sound principles and guidance for effective club governance.

Crucially, its guiding principles will mitigate any potential flare ups of conflict, and be the standards and expectations all board members sign up to. How? Just one example is the inclusion of specific, dispassionate requirements to support the decision-making process, based on data and insights, rather than allowing personal opinions and perspectives to creep in.

Its introduction will unite board members, clarify points of disagreement, and have everyone focused on what is truly in the best interests of the club, in any matter.

Setting the tone

Introducing new board members can inject a welcome sense of energy and perspective, providing you have the right people to do the job from the outset. There are three practical steps you can take to ensure this is the case:

1. Board Selection Criteria – Use an uncontested board election process. This requires a reliable Nominating Committee to recommend a slate of candidates in the same number as the number of board positions open.

Providing you have a highly respected and trusted Nominating Committee, known for their good judgement and integrity, you will recruit level-headed, pragmatic, forward-thinking individuals.

The key to a trustworthy election process is the trust and respect earned by those who serve in club leadership roles. Members’ respect of the individual members of the Nominating Committee will reflect in the overall trust of the committee’s work.

2. Board Code of Ethics – All board members should be provided with (and accept, in writing) the ethical requirements of board service. Such requirements typically include:

  • Confidentiality and Non-Disclosure – Ensure board members are accountable for protecting the privacy of the board and its deliberations. Board members must be trusted by their fellow board members for their capability to be discreet and impartial.
  • Conflict of Interest – Board members must avoid conflicts of interest and refrain from benefiting financially from the club’s contracting and procurement activities. Board members are expected to refrain from being a champion for self-interests in which the individual board member is a beneficiary, such as favorable tee times for certain categories of membership.

3. Business-like Governing Practices – Club members expect their board members to take a business-like approach to corporate governance. In fact, most reference points for governing practices tie directly to members’ experiences with boards of publicly traded companies, where board conduct and process is held to a high standard.

The same should apply here. Board disciplines such as the board’s function to speak as one unit and its authority to speak for the club are expected, as are financial reporting and disclosure standards.

And yet…

In contentious times, some board members cannot be dissuaded from causing conflict within the boardroom.

You can put in place the tools to mitigate conflict, but these are only tools. Tools which require genuine leadership and execution from the board president and fellow board members to be effective.

“Going rogue”, or in other words disrespecting the duty of sound governance, should result in fellow board members confronting the rogue board member firmly and fairly. While there is tremendous value in a board member who sees a different point of view, if these views carry no weight or evidence under scrutiny, they can and should be challenged.

You can never legislate or plan for human behavior, but you can (and should) put control measures in place to keep board members focused on what matters. That’s what will make them a true asset to the club.

Turning Insights Into Action

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GGA Insights exists to support you as a club leader, offering you solutions, tools, and tactics today that can help you improve your work life tomorrow.  But putting change into practice can be a challenging endeavor. GGA Director, George Pinches, offers a road map for translating genuine insights and data into meaningful boardroom action.

Most private clubs are like cruise ships; they do change direction, but very slowly. They are often steeped in tradition, and while this is a powerful asset, it can also hold clubs back.

In reality, clubs need agility if they are to respond and adapt to the fast-evolving demands of changing markets, new technology and generations of new members.

But don’t lose hope; with more data available to us than ever, there is reason for optimism.

Data can clarify the changes that need to be made, shape the direction of travel, and safeguard clubs from the obstacles and pitfalls they may otherwise run into.

But the truth is, before data can be put into such effective practice, many clubs and boards require a cultural shift to recognize the value of it.

Commitment first

When my GGA colleague, Fred Laughlin, first introduced the Club Governance Model, he stressed the importance of obtaining a board commitment before undertaking transition.

This is because research demonstrates it usually takes three administrations for significant changes to be fully adopted by a club board.

In order to move away from what we typically see – decisions based on anecdotal evidence rather than genuine insights and hard facts – this is the process to follow: commitment first, then change follows.

For you, obtaining commitment from your board and committees means convincing them that the use of data-driven decision making is mutually beneficial.

Once your board members start asking “What are the facts? Do you have comparable data or industry benchmarks to support this recommendation?”, then your club will be on track to a brighter future based on genuine insights.

Shifting the dial

It’s clear that clubs can no longer rely on decisions based on institutional memory and personal opinion. But how do you (in practical terms) achieve such long-lasting change?

When it comes to shifting the culture, timing is key.

One of the best opportunities to start a culture shift is at the beginning of a new tenure. This tends to be a ‘honeymoon period’ for the new GM or COO, when support and expectations are running high.

Take the opportunity to assess the culture and seek ways to introduce change: commitment first, change to follow. If your board has an annual board retreat, this can be an opportune time to take action.

Beyond that, I’d recommend focusing on these three key areas to encourage a sustainable culture shift towards a data-driven future:

  1. Board recruitment and development – The nominating committee can add “an aptitude or understanding of data-driven decision making” to the list of attributes when recruiting nominees for the board. The GM/COO can use the same criteria when filling senior management positions.
  2. Board policy – Alterations to the Board Policy Manual (BPM) can ensure that the decision-making policy stipulates the required data, back-up information, and consultation necessary to support a recommendation. Proponents, be they committee or management, soon learn what is expected by the board before considering an initiative or making a decision.
  3. Education – Club industry resources that extol the virtues of data-driven decision making can be shared during board and committee orientation to support the culture shift away from anecdotal to fact-based practices.

Finding ‘your’ way

Process and structure will help, but a true shift in culture can only be achieved through intelligent and thoughtful execution. In some cases, this means finding the unique tactics which work best for you and your Board.

‘Shifting culture’ will not appear in many job descriptions of club leaders. But, for a lot of clubs it should be at the very top. It holds the key to disrupting what can be a perennial cycle of decisions based on what those in power ‘think’ is right.

My advice: think long-term (beyond 5 years), actively gain the buy-in and commitment of board members, and put a structure and process in place to ensure data and intelligence are at the heart of how your Club operates.

Winning Financial Practices

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While directors carry ultimate responsibility for the financial resources of a club, it’s the relationship between the board of directors and club manager that can often determine just how well managed the finances actually are.

Bobby Crifasi, General Manager of New Orleans Country Club, reveals the formula which keeps his club on a sound, sustainable financial footing.

A mismanaged and uninformed approach to financial management can seriously damage a club’s ability to make sound business decisions.

And as the buck stops with the board of directors, it is they who must carefully measure the future financial needs of their club, plan for the sources and uses of funds, and ensure the economic sustainability of the club. Doing so is no small challenge and requires:

  • A comprehensive capital asset replacement roster
  • Maintaining a constant understanding of capital sources and use
  • Command of the club’s balance sheet
  • Sustaining engaged financial review and audit

As one of several duties, that can be a lot to ask of volunteer board members. This is where top-performing club managers step in. The more they can equip their board of directors with the information they need to fulfill their duties, the greater the guarantee of them making the soundest possible business decisions.

Bobby Crifasi manages New Orleans Country Club (NOCC) with style and grace that belies a savvy financial manager. First educated and trained as a certified public accountant, during his time Bobby has seen the Club through a natural disaster in Hurricane Katrina which led to $5 million in unplanned renovations. On a day-to-day basis, Bobby ensures that the Club remains on solid financial ground by keeping his board fully informed on the Club’s financial facts.

“All of our financial information is sent to the board in advance of the board meeting,” explains Crifasi.  “I receive our financial reports by the 10th of each month and that allows a week or so to investigate any variances before the financial information is sent with the board package. If there was anything of significance that I thought the board should know sooner rather than later, I would report on it at the House Committee meeting or email the board directly.”

Keeping the board informed of financial performance metrics is a key for Crifasi and his team, “What we do is provide a lot of financial data comparing this-month to this-month-last-year and year-to-date-this-year to year-to-date-last-year comparatives on a monthly basis.  We do good, old-fashioned spreadsheets with all this information monthly.”

Among the keys that are faithfully tracked at NOCC, Crifasi emphasizes the mission-critical factors in the balance sheet and income statements, “On a monthly basis we focus on key balance sheet items like cash, notes payable, and any other balance sheet items that may have changed significantly during the month.  In addition, we look at our Statement of Income and Expenses and talk about any variances during the month and the factors that may have caused that.  We track initiation fees and dues to ensure we are on budget with those as they represent such a large part of the financial picture.”

On a practical level, NOCC uses a rolling budget process to enable adjustments as conditions require, “We have a rolling budget for the food and beverage operation which is adjusted each month to reflect additions or deletions to the banquet business as well as current forecasts for our restaurant business.”

Given the significant impact of rising labor costs in private clubs, Crifasi adds, “We also look at labor in each department to ensure it is tracking as projected.”  GGA observes that labor expenses are typically the largest category of expenses for facility operators, with benchmarks generally ranging from 52-58% of total expenses for public, semi-private, and resort facilities and slightly higher at 55-62% for private member clubs.

Astute financial management starts with the key information boards require to make sound decisions. Crifasi’s meticulous approach and proactive relationship with his board has helped to simplify an area that other managers can often find complex, providing a financial foundation for the long-term success and stability of NOCC.

If you want to follow in the footsteps of this top-performing manager, four-point approach to financial interaction with board members will provide an invaluable process to work from:

  • Collect and analyze the key financial information
  • Organize the financial details in ready-to-use formats that facilitate comparative analysis
  • Back up the data with detailed department analysis
  • Be ahead of the information curve

Don’t Let Them Ignore You

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GGA Partner Henry DeLozier highlights 5 key attributes to help golf course leaders achieve recognition for their talents and efforts.

We all want to be recognized for our talents and efforts. In fact, in a world where we take more than 93 million selfies a day, being ignored is certainly one of life’s biggest disappointments. One long-held suggestion to avoid being overlooked or taken for granted is this one: “Be so good they can’t ignore you.”

It’s advice offered by comedian Steve Martin, author Cal Newport (in a book with the same title) and printed on T-shirts and wall posters that adorn corporate breakrooms across our country. No matter our objective – recognition that leads to a promotion or simply the satisfaction that comes from a boss’s or colleague’s “good job” – excellence that demands attention seems a logical and valuable strategy.

Here are five attributes that can make you so good that you cannot be ignored:

1. Great attitude is a key factor in your success and ability to be noticed, whether you’re a golf course superintendent, golf professional or club manager.

Savvy employers hire for attitude above other attributes. Stated in the negative, no one needs a grumpy or uncooperative manager leading today’s work force. There is enough friction in getting operational teams to perform at the high end of their capabilities without someone with a negative attitude pulling us down.

According to author Emily Smykal, whose findings were part of a CareerBuilder study by Harris Poll, nearly three in four employees (72 percent) spoke to the power of a positive attitude. “Positivity leads to a more productive workday and creates a better environment for fellow employees,” she writes. “Great employees consistently stand out for their upbeat attitudes and earn positive reputations for themselves.”

Building and keeping an attitude that leads others toward common goals requires a comprehensive understanding of the job’s requirements and a willingness to teach others to work harder, better and smarter. What’s more, great attitudes are contagious.

2. Eager learning keeps everyone involved sharp.

Constant learners tend to be open, creative and receptive to new or different ideas – even if they’re someone else’s. Heather Huhman wrote on Glassdoor that an eagerness to learn shows openness to new ideas, willingness to think beyond today’s facts and invaluable curiosity.

Robert Half, a specialist in recruitment and employment services, recommends that every resume show an eagerness to learn. This trait adds value for the employer and expands the performance potential of the employee. When you’re learning and growing, you are becoming a more valuable employee and one whose contributions are easily recognized.

3. Trustworthy teammates, especially in troubled times, are valued for their consistency, stability and integrity.

Difficult and exigent circumstances reveal those who can stand tall and steady in crisis. One’s day-to-day commitment to being a trusted and respected teammate is manifested in a thousand acts. Ensuring that your actions match your words is an important trust-builder, as are genuine eye contact, thoughtful interactions, an openness to criticism, and the willingness to express oneself openly and with trust.

The world champion sprinter Carmelita Jeter breathlessly testified to the power of trusting teammates at the 2012 London Olympics when – after running the anchor leg on the women’s 4×100-meter relay team, she said: “I knew they trusted me like I trusted them. And I would not let them down.” Jeter and her trusting teammates bested a world record in the event that had stood for 27 years.

4. Mental toughness is critical when we encounter adversity, in life and on the job.

Are you resilient and persistent enough to overcome challenging circumstances? According to Inc. magazine, qualities that make you mentally tougher are patience, perspective, focus (on priorities) and the willingness to confront adversity. The mentally tough understand that criticism or adversity is often not of a personal nature and see it as an opportunity to keep pushing toward their goal.

5. Careful planning – Planning is critical to sustained success. Managers who take a focused approach to plans and planning outperform their club’s budget. Advance planning reduces risk as managers identify potential threats and opportunities. Established, well-stated goals and objectives simplify and clarify your intentions.

This article was authored by GGA Partner Henry DeLozier for Golf Course Industry Magazine. 

GGA to Offer Sophisticated Electronic Voting Services to Private Clubs

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Exclusive partnership with Simply Voting provides private clubs access to a secure online voting platform for club elections.

Global Golf Advisors (GGA) and Simply Voting have formed an exclusive partnership to provide a secure voting platform designed to allow private club members a simple and easily accessible manner in which to cast ballots during club elections. GGA will begin offering the Simply Voting system as a stand-alone service or in combination with this governance guidance platform to private clubs worldwide.

Founded in 2003, Simply Voting Inc. is a full-service provider of secure, hosted online elections. Multiple independent third-party audits have validated the integrity and security of the platform. The company has worked with over 2,000 organizations across the world including government entities, political organizations, educational institutions and unions.

“Engaging private club members to participate in important elections can be a challenging and expensive proposition,” stated GGA Manager Martin Tzankov. “The Simply Voting online system eliminates the need for paper ballots and multiple mailings. Members have the ability to access the voting platform at their convenience and once identity is authenticated, a tamper proof ballot is provided that is easy to understand, complete and submit.”

The Simply Voting system is equally easy for club managers. In addition to voter authentication and tamper proof ballots, the system provides a branded club website, computerized tabulation of results and a variety of reports.

“Online voting is quickly becoming the accepted practice across business, government and organizations to provide an efficient and effective method to ensure election integrity,” commented GGA Director of Private Club Services Michael Gregory. “We view the Simply Voting system as complementary to our governance and strategic advisory services and another opportunity to assist our clients in maximizing their operating efficiency.”

“As we sought to introduce our voting system to the club industry, we felt it important to partner with a company whose corporate values aligned with our promise to deliver an excellent product with honesty and integrity,” commented Simply Voting President Brian Lack. “Global Golf Advisors, with its excellent reputation, was the natural choice. We believe the company has the depth and breadth to ensure our shared goal of providing an efficient voting system to private clubs will be met.”

Increasing membership satisfaction is a key goal of all private clubs. The Simply Voting system, with its accessibility, integrity and ease of use, will ensure members will be satisfied with the voting results of important club elections.

About Global Golf Advisors

Global Golf Advisors (GGA) has provided industry-leading advisory services to more than 3,000 clients worldwide including private clubs, hotels, resorts, residential golf communities, developers, homebuilders, government agencies and municipalities, financial institutions, investors and lenders.  Operating out of three global offices in Toronto, Phoenix, and Dublin, GGA is a highly specialized consulting firm focused on club and leisure related assets with a professional services heritage as the KPMG Golf Industry Practice.  The firm’s expertise lies in its ability to effectively meld club management and operational expertise with highly capable professional strategists and experienced business analysts. GGA personnel include former club managers with experience leading exceptional clubs, along with alumni of Arthur Andersen, Deloitte, KPMG, Pulte Homes, PwC, and Scotiabank Global Banking and Markets. For more information, please visit www.globalgolfadvisors.com.

About Simply Voting

Simply Voting Inc. is a full-service provider of secure, hosted online elections. Driven by dedicated staff who value transparency, high security, and the need for customized solutions, Simply Voting delivers excellence in providing secure, efficient voting solutions which create value for their client organizations. Launched in 2003, the Simply Voting system has been employed by over 2,000 organizations from municipalities, universities and unions to safely execute their elections. Many reputable third parties have audited the product, technical infrastructure, and corporate infrastructure, confirming the integrity and security of the system. For more information, please visit www.simplyvoting.com.

For additional information, contact

Michael Gregory
mgregory@globalgolfadvisors.com
416.524.0083

Make Time for Strategic Thinking

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Do executives at your club know what a strategic plan really is?

Club executives often confuse a strategic plan with a master plan, a capital expense budget or standard operating procedures when in fact it is none of those things.

“A strategic plan is an all-encompassing game plan. It is a plan of action designed to achieve a particular goal. It is a tight, clear-cut statement of what it is your club is trying to do,” explained Henry DeLozier of Global Golf Advisors during a seminar for club managers earlier this spring. “It’s a crucial document because every club needs to know where it is going.”

Strategic planning is receiving more focus in private clubs now than in the past. DeLozier believes this is due to the fact that more is expected of club leaders now (and more of leaders in general). He also says that clubs are expected to function in a more businesslike setting. Oversupplied, competitive markets require more focus and different types of clubs use different models of strategic planning. That’s why strategic planning is more important now than ever before.

The strategic plan should answer the questions what and why. It should not answer when, who or how because the answers to those questions are tactical. To keep strategy and tactics separate, DeLozier urges executives to remember the following:

Strategy = What. A primary duty of the board is to develop the strategy for the future of the club in a three to five-year life cycle. “Strategy is doing the right things for the club and its members. It is conceptually planning what the club will do and why,” he explained.

Tactics = How. This is a primary duty of management. Tactics are about executing the strategy and doing things right for the current period of time.

DeLozier urges all club executives to block off time regularly to think strategically. “Find the time to collect, study and share information. Strategy is part of a leader’s job today. Encourage strategic thinking in such a way that it becomes cultural at your club,” he concluded.

This article was authored by GGA Partner Henry DeLozier for the Private Club Advisor.

Looking Outside the Boardroom

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Board members are an important source of experience and knowledge. But when making strategic decisions on the future direction of the club, that expertise can easily be hampered by a lack of access to valuable data and actionable information.

GGA’s Bennett DeLozier explains how to connect your board with the critical insights they need from outside the boardroom.

Scenario: you’re a manager, it’s sunny, you’re in a board meeting, fluorescent lights buzz overhead.  The group is brainstorming capital improvement projects ahead of next season.  The topics of budget, capital reserves, assessments, competitor offerings, and attracting new members swirl around the room.

Someone claims that what members “really want” are new amenities, another counters that new amenity supporters are mostly younger members in restricted categories, a third comments on the price of dues for this group.  Opinions begin to diverge on membership pricing, someone mentions member satisfaction, people start using the word ‘should’, and a healthy, productive conversation turns to conjecture.

In this situation, a common reference point can bring everyone back on task. You’re confident you probably have data points on all of these topics somewhere in your office or in your inbox.  You’re scrolling, scrolling.  Before long, the meeting adjourns with decisions on hold, and you leave with a list of research tasks and staff projects to tackle in advance of the next one.

Board Members Need Information

While this scenario may be an overdramatization, it’s not terribly uncommon.  This is what happens when intelligent, capable people face important decisions without actionable information.  It deters strategic thinking and is taxing for the manager and staff.

Board members are usually smart, business-oriented people and they expect to have empirical discussions just as they have done in their own line of work.  Their job is to strategize, and a strategy is only as good as the information which informs it.

The most effective club managers gather, consolidate and deliver a war chest of information to the boardroom in order to facilitate better, easier, and quicker decisions.

The Right Kind of Data

A word of caution: not all data is good data and managers are wise to beware the data ‘dump’.  So, what does the right kind of data look like?

  • Data that is current. In a perfect world, the provision is real-time data and predictive analytics.  Data should be updated as frequently as possible and be on-hand for timely, relevant insight before annual planning exercises and performance monitoring activities take place.  In some markets, data that is 12 months old is out of date.
  • Data that comes from multiple sources. A combination of internal club data and external market data are required to be informed at both a micro and macro level.  Data from the club’s management and point-of-sale systems or reports from department heads alone doesn’t cut it.
  • Data that is useable. In presentations and speaking engagements we’ll often joke about the graveyard for strategic plans: in a three-ring binder on your credenza collecting dust.  Cheeky, but true.  Data should be readily available and accessible in a digestible manner.  Having to look for it, go get it, wait for it, or set-aside-15-minutes-for-everyone-to-skim it usually means your data isn’t seaworthy.
  • Data that works for you. Transferring the right kind of data to your board requires you to have a framework for gathering, analyzing, and succinctly documenting all the research and information that is Your data framework should not create more work for you. In other words, you need technology to gather, centralize, and process that information into synthesized insights.

What kind of information do boards want?

They want consolidated internal data to inform them about the club’s financial and operational performance, as well as member satisfaction, habits, preferences, and attitudes.  They want external data which informs them about competitive offerings, prevailing market trends, industry standards, and helps them contextualize the club’s performance relative to others.

Most importantly, they want to know about progress – where the club is now relative to where it needs to be or where members want it to be.

Why don’t boards have this type of information?

Simple. Because their manager hasn’t given it to them.  Usually the manager hasn’t given it to them for really good reasons: they don’t have the time, resources, money, or – in some cases – the culture to support data-driven decision-making.

To be clear, managers should not be expected to have the ability to answer every question which comes their way.  However, they should be expected to successfully guide the process of strategic decision-making at their club.  Here are six tips to make you more efficient and effective at connecting your board with critical insights:

  1. Survey members on satisfaction every year, if not more regularly. Be deliberate and selective with attitudinal surveys, capital improvement surveys, and club votes, but be adamant about doing a satisfaction survey every year.
  2. Know your market inside and out, literally. Knowing your internal market means helping your board know the club’s performance and members.  Knowing your external market means keeping your board apprised of competitors, industry standards, trends, and best practices.
  3. Maintain a constant grasp on the state of your club’s operational and financial data. Being able to reference, provide, or recite details about the club’s finances and operating performance is one of the most effective ways to enhance your command presence in the boardroom.
  4. Keep your data organized and ready to go on short notice. Get yourself in a position where you’re prepared to deliver an informed response to any questions which come your way or threaten to derail a productive discussion.
  5. Report on performance metrics before you’re asked. Be proactive about regularly updating your board on current status, changes, and evolutions within the club.  As the saying goes, they don’t know what they don’t know.
  6. Build upon your data and monitor how it changes over time. This will provide your board with a sense of progress and will serve as a powerful cache of information when it comes time for your annual performance evaluation.

Being Flexible for the Future

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“Forecasting is very difficult,
especially with regard to the future.”
Yogi Berra?

Preparing for the Future

Even if the late Yogi Berra didn’t utter this statement, it’s an easy attribution. Like so many of Yogi’s statements, it tucks a truth inside a pithy, if nonsensical saying. We can speculate on the future, guess at trends, or engage a soothsayer, but we can never be certain of our forecast.

Yet as club leaders we are called upon to plan, invest, and adapt. Despite our inability to predict the future, we know the risks of sticking to the status quo. So how do we prepare for the new law, the gathering trend, the abrupt change in the economy, or other externalities – especially those that are unforeseen?

There are two issues relating to a club’s preparations for the future: recognizing the need to change, and taking the appropriate action

A club is best prepared to recognize the need to change by developing a well-constructed strategic plan and maintaining it as a dynamic document (i.e. revising it as new information becomes available). The more considered and current the strategic plan, the better prepared the club will be to respond to evolving conditions.

Next, in order to take the appropriate action, the club needs a Board that is three things: thoughtful, decisive, and nimble.

Thoughtfulness and decisiveness are features of the Board’s character and competence, and are best achieved by sound election processes to recruit Board members based on their merits (i.e. their ability to serve professionally in a culture of cooperation and respect).

Nimbleness, on the other hand, has to do with the flexibility afforded the Board via the club’s governing documents – its bylaws and Board policies. The Board’s agility is based less on the quality of its members than on its documented processes.

When the Future Arrives

Good doctors do two things well: make accurate diagnoses, and prescribe effective treatments. Similarly, effective club Boards do two things well: assess the impact of new laws, growing trends or shifting styles, and then take the action appropriate to address the impact.

So, what can a Board do in the present that will equip it to respond to the future when it arrives?

For years we at Global Golf Advisors have strongly recommended that club Boards develop and maintain a Board Policies Manual (BPM), which contains all of the Board’s standing policies in a succinct, well-organized document. We also recommend that bylaws be amended to afford flexibility for the Board to carry out its fiduciary responsibilities in a professional, transparent manner. The two actions must go hand in hand.

A club’s bylaws are actually “member policies” – instructions from the members to the Board. Members will be reluctant to cede authority to the Board without knowing how that authority will be used, and that’s where the BPM comes in. If the bylaws instruct the Board to maintain a publicly available BPM that clearly lays out how it will govern, then the members can be well informed as to how their Board is serving them.

Our advice is simple: include in the bylaws only the basic requirements, and let the Board formulate and publish in a BPM those policies it believes will allow it to govern effectively. Why? Because when the future arrives – say, a new law is passed, a new trend is affecting the club, or new amenities are being demanded by the members – a Board needs the flexibility of responding without having to go back to the members for a vote.

Of course, there are limits to ceding authority from the bylaws to the BPM. We are not advocating a carte blanche transfer. But in our experience, most club bylaws can be streamlined so they contain only the basics, thereby leaving plenty of room within which the Board can operate. The BPM is the centerpiece to the Club Governance Model*, which is the standard for excellence among the club community. There are many reasons for a club Board to develop and maintain a BPM. Preparing for the arrival of the future is just one of them.

For further advice on creating and maintaining a Board Policy Manual (BPM) for your Club, connect with GGA Director, Fred Laughlin.

*GGA’s Guide to Implementing the Club Governance Model is available to club leaders and Board members on request.

Embedding a Culture of Progression and Longevity Among Board Members

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Each new set of Board members are faced with the same conundrum: the desire to achieve things and make a difference, but only a limited term with which to do it. The answer to this issue, is to instill a sense of mission and to focus the attention of Board members on longer term issues. GGA’s Rob Hill delivers the key insights.

Formulate a proper orientation

Every board, just like a club, has its own culture which is defined by its traditions and practices, and every new board member deserves a focused introduction to this culture if they are to be expected to adapt and contribute from the outset of their term.

Orientations vary greatly, but no matter the approach, they offer an extraordinary opportunity to focus new and existing members on the club’s vision, mission and the long-term strategic business priorities of the board.

It’s also the ideal environment to emphasize the progress made by the club and immediate actions to be undertaken, both of which underline the responsibility the board holds: to advance a plan, to make meaningful progress, and for this be aligned to an overarching strategy so that there is continuity of effort.

This sense of collective effort – of accountability, of building on the work of others, of advancing a plan closer to its successful conclusion ­– is often inspiring for new board members.

Focus on the future

Clubs traditionally start meetings with minutes and committee reports that contain minutiae and operational items that are reflective of what has already happened, but ideally a Board should be focused on strategy (the future) and policy.

Everyone (Boards and GM’s) would rather spend their time on the concrete things and events that they can touch and feel, rather than the conceptual – strategy and planning.

You have to challenge these instincts using a “Consent Agenda”. Effectively, the Hon Sec and Club Manager should carefully plan not only the details of the agenda, but, crucially, the order too, in order to keep strategy at the forefront of Board business.

It takes several meetings and a commitment up front, but over time it helps to shift the emphasis toward the future.

Face resistance with facts

Should a Board successfully navigate the strategic planning process and adopt a long-term plan, it should not make the mistake in thinking that the hard work is over, or that all of its future members will support it without question.

It is common for plans to be questioned and tested. After all, if Board Members are to be tasked with the implementation of a plan, it is only right that they can challenge elements they doubt. Board governance is most successful when Members ask the right questions, put forth new ideas and challenges, and continually refresh and renew the Club’s goals.

Where a Board Member is strongly resistant to elements or the entirety of a strategic plan, this is often the result of either: a belief or conviction based on their experience, or a feeling that a plan only serves as a straitjacket which prevents them from imposing their own will on the Club.

In such an instance it is important that facts are established. That way, any questions of validity or appropriateness are based on evidence rather than purely belief or emotion. Board Members can passionately state a personal position in opposition to components of a plan, but they should be expected to support their positions with facts.

Foster a shared vision

 A strategic plan is certainly a powerful tool for facilitating continuity of tenure. However, it should never be considered a silver bullet. A strategic plan, no matter how good it is, will not cure all ills.

Long-term success requires alignment of the entire club. Only when the board, executive leadership, committees, members and staff are fully aligned behind a shared vision, when you consistently communicate your successes and progress, when the entire club believes in and sees the positive impact of strategy does real momentum build. Indeed, over time, this becomes integral to the fabric of the club’s culture. It becomes a habit.

Key takeaways

  1. A Board orientation is a powerful tool for maintaining continuity and momentum. It is a matter of educating volunteer leaders on the mechanics of the Club, the responsibilities they have toward it, how the Board functions, and, importantly, the strategic goals and actions toward which the Board is working.
  2. It takes determined and committed leadership to keep a Board focused on the Club’s future rather than obsessing on the past. Tools such as a consent agenda can support this focus, as will enlisting the strategic action plan as the central focus of each Board meeting.
  3. Successful plans are built on intelligence and facts. This not only makes them more likely to succeed, but will protect them from those who are resistant to change.

This article was authored by GGA Partner Rob Hill.

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