Effective Beginnings

A good friend says he starts his list of New Year’s resolutions with one word written across the top of a legal pad. The word is “effective,” which is a good choice because it implies results. Results normally require action on our part – and usually not the same things, done the same ways. We need to do things differently and better before we can improve relationships, be more efficient and increase the value we bring to our businesses.

If you hope to be more effective in 2019, here are 10 suggestions.

1. Track your time. Even the busiest and most efficient people waste parts of their day’s most precious resource. The time-stealing culprits are numerous and easily mistaken: idle chit-chat, social media, meetings. Like a sensible diet, each has its place, but moderation is the key. Keep a log for a week to know where every minute was spent. Evaluate how much was spent effectively, in pursuit of goals and objectives. Then repeat the task the next week, keeping in mind the previous week’s wasted time, and compare results. You might be astonished.

2. Measure accomplishments, not effort. It was the Greek philosopher and scientist Aristotle who wrote, “We live in deeds, not years.” It’s worth knowing how long it took you or your staff to accomplish a task or project, but it’s the outcome that is the ultimate measure of our work. Did that 12-hour day you just put in move the needle on a strategic objective? If not, where could your time have been better spent?

3. Stop multi-tasking. People like to brag about juggling multiple tasks and priorities. But time and efficiency experts agree that often these same people are deluding themselves, actually doing twice as much work half as effectively. Focus on one task, complete it and move to your next priority. Effective multi-tasking is called delegating.

4. Get started. If 80 percent of success is showing up (Woody Allen is supposed to have said that), getting started must account for at least another 10 or 15 percent. Knowing where to begin starts with knowing where you want to finish. So, start with one of your goals and work back. Develop a routine that gets you going each day. Whatever works, do it consistently.

5. Dress to impress. Unfair though it may be, people begin forming opinions of others before their first word is spoken. They do it based on an untucked shirttail, an ill-fitting sport coat and the shine on a person’s shoes. Don’t let any of those things negatively influence an opinion.

6. Write simply, clearly and factually. Most everyone is called on to report on programs and results. Maybe you’re making a pitch for a budget increase in your area. All of those things start with putting your thoughts on paper. What and how one writes greatly influences how people respond. Organize your thoughts, express them in short sentences composed of carefully chosen words, without misspellings and typos, and then edit carefully. Before hitting “send” or sealing the envelope, read what you’ve written out loud to yourself or a colleague. If the logic seems jumbled or the words don’t flow easily, take the time to fix it.

7. Read and then read some more. President Harry Truman noted, “Not all readers are leaders, but all leaders are readers.” For many of us, reading to keep up with trends and developments in our field is the last thing we seem to have time to do. If that’s the case, schedule reading time just as you would time for any other task.

8. Improve your workspace. Your workspace is a reflection of your state of mind and organizational abilities. Are golf clubs, coffee cups and boxes scattered about? Or is it purposely organized to help you to focus on your most immediate responsibilities and tasks? Simplify your work-setting by eliminating the clutter and you’ll find it easier to focus on priorities.

9. Establish your own wind-down routine. Be deliberate in finishing your work, just as you were in starting it. Make your priority list for tomorrow as a part of winding down and then leave, knowing there will always be more work to be done and that there’s always tomorrow.

10. Dream big. How else are you going to be really effective?

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

Budgeting 2019

Budgeting for 2019 requires a broader-than-usual alertness to changing times and impacts on golf-oriented businesses. Newfound elasticity on revenue sources, such as dues and fees, will allow many to plan for revenue increases. That’s the good news. More sobering is the fact that most courses and clubs will strain to cover the rapidly accelerating costs of operations.

While it’s helpful to know that costs are rising, budget planners benefit even more from understanding the factors driving cost increases. Here are five cost areas where knowledge of underlying trends and timing will lead to accurate projections.

Labor

The U.S. Department of Labor’s Employment Cost Index notes that wages and salaries for U.S. businesses increased 2.9 percent for the 12-month period ending in June 2018, following a 2.4 percent increase in June 2017. The cost of benefits rose 2.8 percent for the 12-month period ending in June 2018, after increasing 2.2 percent in June 2017. Employer costs for health benefits increased 1.6 percent for the same 12-month period.

Insurance

The costs associated with insuring golf facilities are increasing. Willis Towers Watson’s insurance industry semi-annual report (2018 Insurance Marketplace Realities) projects increases in insured categories more vulnerable to natural catastrophe impacts.

  • Property: Previous-loss history more than doubles premiums in most markets. Clubs located in markets exposed to catastrophic claims will increase as much as three times those of non-exposed clubs, while those clubs with catastrophic experience with losses may see increases from 15 to 20 percent.
  • Casualty: WTW projections indicate that rates for casualty insurance will increase less than 4 percent.
  • Auto Liability: For clubs with automobile insurance premiums, rates are expected to rise from 5 to 9 percent. Ongoing market challenges exist in this space, and two years of steady price increases have not kept pace with loss trends and adverse developments. Rates are expected to rise more steeply.
  • Cyber: Golf clubs are vulnerable to cyber-risk. The WTW study notes a 15-fold increase in two years with claims near $5 billion. Organizations without claims can forecast increase of 5 percent or less.

Healthcare

“Over the past nine years, employee out-of-pocket spending for a family of four increased 69 percent in the form of higher co-pays and higher deductibles, along with 105 percent employee premium contribution growth,” Keith Lemer, CEO of WellNet Healthcare, said in an interview with CNBC earlier this year, noting that over the same period a year earlier employer premium contributions increased 62 percent.” Lemer added, “In 2008 more than 8 percent of a family’s income was spent on health care. In 2015 (last available data) it rose to 12 percent. This means people are making less money today as a direct result of the cost of health care.”

Food

The costs of food consumed at home diverged a few years ago from the costs of food served away from home – in restaurants and clubs. The U.S. Department of Agriculture predicted grocery store price increases from 1 to 2 percent. Food consumed away from home is expected to increase from 2 to 3 percent. For menu planning purposes, be aware that beef and veal are projected to rise 2 to 3 percent, egg prices will increase 4 to 5 percent, while cereal and bakery prices will go up 3 to 4 percent. The USDA expects prices for fats, fruits and vegetables to drop.

Fuel

Large consumers of fuel and oil by-products, including golf courses, will see some relief in fuel-related costs in 2019, according to an August 2018 J.P. Morgan forecast. “While geopolitical tensions and lingering risks of large supply disruptions remain an upside risk, we think that prices will be corrected downwards towards end of the year and remain capped in 2019,” J.P. Morgan analyst Abhishek Deshpande wrote in the note reported by CNBC. This is important for golf where oil prices and those of oil by-products, including fertilizer, have direct budgetary impacts. For budgeting purposes, managers should watch oil futures. One can expect higher gas prices about six weeks after an increase in oil futures.

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

The Revenue Menu

At a typical golf club, who should be involved in building revenue for the club?

Building revenue is a part of everyone’s job at a club.

If you are a leader, it’s important that everyone under you shares your vision to increase sales.  That necessitates good communication, as with any efficient team, but if all areas of the club are on the same page when thinking about how best to benefit the bottom line, the results will speak for themselves.

They say no man is an island, and no part of your club operation is either.  If you want to build revenue, it needs to happen at all levels of your business.

How can a club encourage all levels of the operation to be thinking about revenue growth?

Attitude always reflects leadership.  If the leader’s attitude is demonstrated in a commitment to increase revenue, most subordinates will embrace the importance of the task.

Therefore, it is incumbent on team leaders to teach staff, not just what to sell – which goods and services yield the most profit margin for the Club – but also how to sell it.

Often staff members are enthusiastic about developing new skills and all they need is guidance.  The truth is, few among us are natural-born salesmen, but selling is a skill that can be learned.  Think about investing in a professional selling skills program to train the club’s staff, and the selling strength of the club will expand immensely.

How should the operations team decide on which revenue sources to focus their energies?

A great way to get the ball rolling is to create and use a ‘Revenue Menu’.  Think about all of your available revenue sources, list them out, and leave no stone unturned.

You will want your team to focus on what yields the most to the club and sell high-yield items as much as is reasonable; however, it is also important that each staff member knows all of the products and services that they can offer a customer.  This way, when the high-yield items are not appropriate they can move down that list.  It all adds up: if you don’t get the little money, you won’t get the big money.

Membership dues and guest fees are high-yield segments, as are fees for motor carts and range balls, and these are usually the best place to focus first.

However, one notable exception to the notion of focusing on high-yield products is instruction.  When people commit to becoming better golfers, they use the club more often, feel more loyalty towards it, and make it a priority in their thinking.  Helping others to enjoy golf more through instruction is a sound business approach.

What are some of the key tactics that should come from any “Revenue Menu”?

  • Membership dues and fees will be the primary source of revenue for most clubs, and should always be a priority.
  • Items that have little cost of sales attached to them such as motor carts and range balls.
  • Increase rounds played through non-dues golf rounds (guest play) and events.  This should be a priority for every pro.
  • Win the kids and you win the moms; win the moms and you win the game.  Treat children well – it’s good business.
  • Reward customer loyalty, but reward it only when you get what you want (e.g. buy 10 buckets of balls, get one free, etc.).
  • Cause customers to earn discounts.  When you do a points program at your club, be sure it doesn’t become a problem with customers looking for more.
  • Make instruction a priority.  Revenue comes in different ways, not only directly.

The key is that your Revenue Menu needs to be a living document, not just a one-time event.  It’s important to follow and map the items on your menu to see how they are performing.  This allows you to adjust your tactics as you move forward and discover which items are more fruitful investments at your club.

This article featured insights from GGA Principal and Partner Henry DeLozier

Polish Your Skills

Of all the career counseling advice given over the years, Abraham Lincoln probably nailed it when he said: “The best way to predict the future is to create it.”

With one more grass-growing season under your belt, maybe you’re reflecting on your career and wondering where it’s going. Maybe you’re worried it’s not going in the direction you hoped or that it seems stuck. Maybe it’s time to take charge of your career and start creating your future. Here are nine capabilities that must be developed and improved upon to advance your career:

Leadership/Command Skills

Are you the person to whom others look in times of difficulty or crisis? John Cunningham, who began his career as a golf course superintendent and is now the general manager at Aronimink Golf Club, views career paths as a four-lane highway rather than the one-lane road many see. “Do not pigeonhole yourself as just an expert in one area. Once I started learning about the entire club business, I realized that the leadership and management skills that I had been working on in one area of the club business were transferable to many other career opportunities.”

Professional Selling Skills

Those who understand the science of professional salesmanship have a distinct advantage when trying to move someone to their point of view. For them, persuasion is a process of describing both the features and benefits of the course of action they advocate.

Business Acumen

Do you understand how the business you manage works? Are you an accomplished financial manager? Countless programs are available through CMAA, GCSAA and the PGA of America to help aspiring managers understand the business necessities of their clubs and employers.

Learning on the Fly

Many lessons in club management are learned on the fly without time for rehearsal or in-depth preparation. This requires that a manager be open to change and comfortable when dealing with unexpected problems. Mark Bado, the GM at Myers Park Country Club in Charlotte, says, “Aspiring managers should be patient and hungry to learn and to stretch themselves. We all experience setbacks and get knocked down. Surround yourself with people who have been there also and will you get back up on your feet.”

Standing Alone

The people who make major career moves are often those willing to explore new concepts and find new solutions to complex problems, ones such as labor shortages and escalating personnel costs. Often it is the champion for new concepts who reverses operational losses and plots a new course for a club’s growth.

Organizational Agility

“Take a chance and ask for help,” Cunningham advises. “The relationships that I have developed in the club business have afforded me so much perspective and insight. We all have blind spots and being collaborative and reaching out to others regarding your career will be invaluable.” Develop your own list of go-to experts in various aspects of the business and remember to pay their kindness forward.

Dealing with Ambiguity

Those who advance their careers function effectively in a state of continuous learning. Paul Levy, the current president of the PGA of America, has learned great lessons “in the heat of battle,” as he calls it. “Work on improving your communication skills (because) it’s often not what you say but how you say it that matters.”

Performance Management

“Today we live in a world where most people respond best to positive direction and motivation,” Levy says. ”When you must give feedback on performance or behavior that needs adjusting, it must be done positively and with a plan you both agree on for improvement that benefits both parties.” Every leader is held to account for his or her results; knowing how to track and measure ongoing performance yields improved results.

Hanging Tough

Adversity finds each of us. As the Navy SEAL saying goes, “The only easy day was yesterday.” Leaders are admired for their unwillingness to give in to problems. Your next promotion may come as a result of showing the determination to find a solution for which others have given up searching.

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

Averting Surprises

On the west coast of Scotland, between the islands of Jura and Scarba, lurks a monstrous whirlpool so menacing that it even has its own name. Fed by a tidal surge that picks up speed as it races through the narrow strait separating the islands, Corryvrekan is a devilish surprise awaiting ill-prepared sailors, taking unsuspecting ships to a watery grave.

Though not quite so devilish, it’s often the unknown that sinks a good year and an otherwise solid strategic plan in the golf business. But rather than chalking up performance setbacks to something out of your control, consider five planning suggestions that will help avert those ever-lurking surprises.

Align Your Core Values

Know what you stand for and what you mean to accomplish. Ask yourself:

What’s most important to me? Your work and interactions with others demonstrate your value system, whether you are a hard-nosed money manager or a touchy-feely departmental manager. See that your actions are consistent with your core values.

How does my work serve others? In management, one is often a servant leader who must place the needs and expectations of others ahead of his or her own. Study your course or club and understand what values are most important to your customers, members and staff. Organize your work to fulfill their priorities and your desire to serve others.

What legacy do I wish to leave? Most people do not consider the lasting impact of their countless hours of dedicated work. But they should because the best way to serve the interests of your facility and the environment is to make sure your work is building the reputation you want to leave for your successor and generations to come.

Understand Your Market

What do you know about your market? Is it primarily golfers? Families? Non-golfers seeking socialization? You should know. Are your golfers mid-level managers or high-flying wheeler-dealers? Are the women of your club working professionals or those who do not work outside the home?

Three ways to know more about your market:

  1. Understand the demographic profile of the most current member survey.
  2. Obtain the demographic profile for the local area that you serve (www.census.gov).
  3. Host discussion groups or roundtables so that your market segments can tell you about themselves and what they want from you.

Establish Clear Goals

Be specific in what you expect of yourself and your staff. Set goals that align with your long-term vision, then confirm that they align with those of management and board of directors.

Your goals for next year should be set by now. If they’re not, have a conversation with your manager and make sure you’re both on the same page. While you’re at it, set up regular meetings during the year when you both can sit down to review progress and make adjustments.

Develop a Realistic Action Plan

Convert your core values, goals and objectives into an action plan that is sized appropriately to your resources, including staff and budget. Then align authority and accountability to make sure everyone knows their roles, responsibilities and deadlines. reckoning as certain as the Corryvrekan.

Refer to the action plan and chart of accountability every week, month and quarter to ensure that you are on-course. Good or bad, report your progress up the organization. Transparency builds and sustains trust.

Re-evaluate Constantly

Few plans are perfect and most goals and objectives requires adjustment from time to time. Be flexible. Stay current and measure everything accurately and without bias.

Similarly, ask your staff to evaluate their own work and yours. Ask members and regulars for feedback. Listen to the most frequent critics … they often know what they’re talking about! Hold yourself and your plan accountable for the results being achieved.

Sometimes, as was the case with ships encountering the vagaries of the Corryvrekan, surprises are out of our control. Often, though, some careful planning will give us the opportunity to steer clear of turbulence that lurks ahead.

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

Board Self-Assessment

Following board room performance standards now in use at most corporations, enables private club boards to improve their performance and the job satisfaction from their board service.  One business-like staple from the big companies is a board self-assessment.

Usually a board self-assessment is divided into four segments: structure, information, dynamics and individual board member self-evaluation.  Following are some examples of such a board assessment tool, which quantifies the qualitative elements into five parts ranging from “strongly disagree” to “strongly agree” (with disagree, neutral and agree in the mid-range).  Questions about the board structure include:

Structure

  1. The board members have the appropriate talent, experience, diversity, independence, character and judgment.
  2. Board meetings are well organized and planned to ensure an effective use of time.
  3. The annual board retreat is effective in focusing the board on key strategic issues.
  4. The board has the right number of committees, and
  5. Committee meetings are timely, when-needed and purposeful.

Information

  1. The responsibilities and expectations of board members are clearly communicated and understood.
  2. The board receives adequate pre-reading materials – including budget, financial and committee reports – in advance of meetings.
  3. Board minutes are appropriate for the club, accurate, and timely available for member review.
  4. The board has adequate access to internal and external advisors, such as independent auditor and legal counsel, and
  5. Presentations by officers and staff at board meetings are accurate and unbiased.

Dynamics

  1. Board devotes sufficient time to understand and appropriately influence the club’s mission and strategic direction.
  2. Board clearly communicates goals, expectations, and concerns about tactical solutions the club’s strategic plan.
  3. Board maintains current, accurate and complete understanding of the club’s financial performance and capabilities.
  4. Board monitors legal and ethical compliance consistently, and
  5. Board balances the assignment of authority with accountability for results.

Board Member Self-Assessment (rate your own performance)

  1. Full understanding of the club’s strategic plan.
  2. Able to make critical and informed decisions in a constructive manner.
  3. Focus on key strategic, financial and governance matters.
  4. Actively engaged in the work of the board, and
  5. Advocates in support of the club.

The consolidated – not individual – results of the board self-assessment should be published for member review with an invitation for comment and feedback.  This step engages members and enables individual board members to separate random member comments from quantified data.  Members favor the notion that the board is holding itself accountable to the club’s members and openly sharing the results with fellow members.  Although your club may not be a Fortune 500 company, it can certainly adopt useful standards of board accountability.

GGA’s Henry DeLozier penned this article for BoardRoom Magazine’s BoardRoom Briefs.

Hard Times

In his award-winning description of the Dust Bowl years, author Timothy Egan tells the story of a land without adequate water for crops and the soul-suffocating consequences of extreme drought. “The Worst Hard Time” recreates the 10,000-foot high dust storms that whipped across a delicate dryland ecosystem, choking animals and people eking out an existence most of us cannot imagine.

It’s hard to read the author’s account of their epic struggle and not relate it to the importance of intentional water management programs for anyone in the golf business today. Water management is one of the great responsibilities for all who draw water from the land, and superintendents are rightfully praised for their careful and attentive water consumption practices. They are diligent and careful users of water – whether from the ground or recycled effluent. Yet, many fear we are not doing enough to safeguard the long-term health of our most valuable assets.

Fortunately, and in contrast to the Dust Bowl years, when charlatans and conmen preyed on fearful farmers, there are now a number of progressive superintendents developing and sharing solutions for the common good. We’ve highlighted a few of them here, some of which fall into the category of plain old common sense and others that are quite innovative.

Common-Sense Solutions

Rick Tegtmeier, the superintendent at Des Moines Golf and Country Club, which hosted the 2017 Solheim Cup, often employs the wisdom of experience.

“If there is a rainfall event in our immediate future, we turn off the well (that fills the irrigation lake) in anticipation of filling the lakes with runoff water,” he says. “That saves the club money by not pumping the water out of our deep well. All our lakes on property can be drained into one of the lakes that we draw out of. In the event of a water shortage or drought, we have 21 days of water on property to keep our greens and tees alive.”

Many superintendents monitor water consumption with technology systems that constantly monitor the efficient performance of irrigation systems. “If a head is not turning or a nozzle is clogged, I can assure you water is being wasted,” Tegtmeier says.

Innovative Solutions

Tegtmeier is also known for his innovative approach to water management.

“Over the four months of summer, we utilize wetting agents on greens, approaches, tees and fairways. These surfactants make the water wetter and help to evenly distribute moisture throughout the soil profile.”

There are many types of surfactants available to turf professionals. “Using the right ones to either retain water in the profile or penetrate the soil is key,” Tegtmeier adds.

Bill Cygan, superintendent at Silver Spring Country Club in Ridgefield, Conn., considers water management a “blend of art and science.” Using moisture meters, Cygan and his team seek optimum moisture content for their course to produce firmer and healthier playing surfaces. “Many factors, including season, weather, soil types, microclimates and membership expectations, must be considered,” he notes.

Both Tegtmeier and Cygan also carefully monitor evapotranspiration (ET) levels on their courses. Cygan uses deficit irrigation for replacing only the least amount of water lost through ET that is needed to keep the plant healthy.

Tegtmeier says tracking ET helps determine how much to water back that evening. “We also have six TDR meters we utilize throughout the day to see if the soil needs water. Thirty years ago, we used a soil probe or a cup cutter to determine if water was needed. Now, TDR measurements are an essential part of what we do every day.”

Wetting agents are also an important part of the superintendent’s arsenal. “Wetting agents aren’t a replacement for good drainage or an irrigation system,” Cygan says. “But they will aid either process, depending on which product is chosen.”

We’ve come a long way from the Dust Bowl years, when wet sheets were hung in windows and doors were taped and stuffed cracks with rags to ward off the elements. But despite their good intentions, homespun remedies didn’t work. Poor soil management practices and the lack of water were to blame. The toll was paid by the people who lived to tell the tale.

Fortunately, progressive superintendents have developed common-sense practices and innovative solutions to help ensure that the worst hard time is not repeated on our golf courses.

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

Common Change Challenges

“As you ask about common change challenges that most clubs are facing, it is that they are ill-prepared for change in the first place … they are not prepared to process change in a sequential manner.”

In this interview, GGA Partner Henry DeLozier shares his view on how club leaders can create and prepare for change – referencing the need for a clear-cut set of intentions that describe the club’s plan for change and how the club’s leaders will go about implementing it.

Make Grit a Habit

In the 2010 remake of True Grit, Arkansas farm girl Mattie Ross sets out on a quest to track down her father’s murderer. Knowing her journey will take her over tough terrain and across the paths of some ornery dudes, the feisty 14-year-old enlists the help of a boozy, trigger-happy lawman named Rooster Cogburn.

“They tell me you’re a man with true grit,” Mattie says to Cogburn, whom she somehow figures is just the man for the job, despite outward appearances. Later joined by a Texas Ranger on the trail of the same outlaw, Mattie, Cogburn and the Ranger each has his or her grit tested in different ways.

Similarly, our own grit (call it perseverance, resolve or steadfastness, if you like) is tested on a regular basis. Dr. Angela Duckworth, professor of psychology at the University of Pennsylvania and the founder and CEO of Character Lab, is well-respected on the topic of grit and how to build more of it. In her book “Grit: The Power and Passion of Perseverance,” she writes: “Where talent counts once, effort counts twice.” In fact, she has reduced her research findings to the following formula:

Talent x Effort = Skill

Skill x Effort = Achievement

So, how do superintendents and other managers of golf courses and clubs develop more grit to achieve more of their goals? Here are seven suggestions:

  1. Start by doing what interests you. If grit is a result of passionate commitment, it is wise to choose a field or projects that matter to you. Choose a field and pursue accomplishments worthy of your best efforts. You know the old saying: Make your job your hobby, and you’ll never work a day in your life.
  2. Surround yourself with gritty, determined people. In his story of incredible survival against the ravages of the Antarctic sea, Earnest Shackleton noted that it was the dogged determination of key crew members that made the difference in living and surviving. Likewise, acclaimed management guru Jim Collins advises managers to get the right people on the bus with you and see that they are in the right seats.
  3. Establish a clear-cut plan of action. Managing others requires that all involved fully understand and support the plan. Educate, inform and paint the picture of the successful outcome. Reiterate goals and objectives continually. Commit the plan to writing and support it with visual cues wherever appropriate and possible. One finds his or her way home when remembering clearly what “home” means to them.
  4. Dare to succeed. Fear of failure is called atychiphobia in the scientific community. The antidote is courage, which can be learned and developed. Push beyond your comfort zone. Eleanor Roosevelt said, “Do something that scares you every day.” Some managers are afraid of failing or appearing to be a “failure.” Be brave and strive for higher, bigger and better goals. These goals should be a core part of your plan.
  5. Be conscientious. Pursue goals in a consistent and resolute manner. Do the right things right and help those around you to do the same. Learn from small losses along the way; celebrate wins in their time. Revisit your goals daily and remind people why they’re important to the bigger picture.
  6. Prepare for and embrace difficulty. Peyton Manning practiced throwing wet footballs, knowing there would be rainy Sundays. Golfers at Oklahoma State University are taught to relish bad weather with the certainty that they will be better prepared than their competition. Bad weather or poor conditions become a competitive advantage to that mindset. OSU’s longtime golf coach, Labron Harris, taught his players that one must put his hands close to the fire if you want to get warm.
  7. Pursue excellence. Perfection is often unattainable, while excellence is an attitude that rewards the determined few. Faithfully pursuing excellence enables successful results and an emboldened team. It was Aristotle who wrote, “We are what we repeatedly do. Excellence, then, is not an act but a habit.”

Similarly, grit is not an act as much as it is a habit, an attribute that can be more fully developed with careful thought and advance planning. About you, would they say: “They tell me you’re someone with true grit?”

GGA’s Henry DeLozier penned this article for Golf Course Industry Magazine.

Board Priorities: Add Brand Management to Your Fiduciary Responsibilities

There are typically three priorities that command the attention of private club boards: (1) developing and using sound strategy; (2) ensuring the financial security of the club; and (3) governing the club responsibly.  However, in these days of over-supplied markets and the ongoing regeneration of many clubs, brand management has become massively important to clubs.

Some board members claim that a private club is “private” and, therefore, not a commercial brand. These outdated beliefs are a sure-fire plan for damaging the long-term brand health of the club.

Private club board members share several fiduciary duties, which include the duties of care and loyalty, such as good faith, confidentiality and disclosure.  Directors’ duties also expand to the responsibility to protect the identity—which may include its trademarks, intellectual property and public-facing images.

Brand Planning and Security

What is your club’s brand? And how is it being protected?

A brand is a small piece of real estate “owned” in the mind of the consumer, according to Al and Laura Reis, authors of “The 22 Immutable Laws of Branding,” a marketing classic on branding commercial companies.  Some board members claim that a private club is “private” and, therefore, not a commercial brand.  These outdated beliefs are a sure-fire plan for damaging the long-term brand health of the club.

Brand health, which means admiration, trust and desirability, is an important duty for private club leaders.  Social media proliferation and unending public awareness and scrutiny of private clubs require the club board to pay attention to the club’s brand.  Club leaders should routinely execute a brand audit to validate the club’s market impact.

Strategic Planning

The club’s strategic plan is its long-term direction and scope of operations.  The plan helps the club stay focused on its priorities, and to fulfill stakeholder expectations.

Board members are responsible to fellow members to ensure that the club has a sound strategy and that the strategy is being faithfully enacted.  Directors are duty-bound to know the club’s strategy and ensure that it is preserved and routinely used.

A sound strategic plan extends for a period of three-to-five years and should be fully reviewed annually.

Financial Security

Directors are responsible to protect the financial resources of the club.  This means that directors must carefully measure the future financial needs of their clubs; plan for the sources and uses of funds; and ensure the economic sustainability of the club.

Economic sustainability requires that the club generates revenues adequate to pay the costs of the operation and to fund future capital needs of the club.

Board members must fully understand the club’s financial capabilities and limitations.  A key tool used to report the financial profile of a private nonprofit, tax-exempt club is a Department of Treasury Form 990, which each director should also understand.

Club Governance

Every club director should strive to provide sound governance to their club.  Effective club governance is built on the regular usage of the strategic plan and a board policies manual (BPM).

A BPM documents the methods that will be used in governing the club.  It also includes a description of the organization, the authority of the board and the manager, and the relationship of the board with the manager/COO.

The BPM is as fundamental to effective club governance as the strategic, financial and brand plans.  It must be developed and used on a regular basis.

Today, governing a private club is a bigger and broader job than at any previous time.  Brand knowledge and management have become just as important to the overall health of the club as other fiduciary duties, such as strategic planning and financial security.

GGA’s Henry DeLozier penned this article for the National Club Association’s Club Director Magazine.

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