Governance

Private Club Leadership in a Nutshell

Private Club Leadership and Culture

Our hobbies often provide us with a mindset for making sense of conundrums that we face as leaders in the club world.

Mine are the lessons learned while riding motorcycles through mountains across North America. From the Rockies of the lower 48 and Canada on to Alaska, across to Nova Scotia, from the east coast to the west coast, and down to the hills of Texas and Alabama. As diverse as that vast terrain is, simple truths guide motorcyclists to stay upright while riding the “twisties.”

The attraction of beautiful and awesome mountain roads is that at every turn the physics of the terrain threaten to put to ground the motorcyclist. It is counter intuitive to foil the impulse of nagging fear and look beyond the moment. We carve a mountain road successfully while enjoying the flow of focus, discipline, and physical exertion. Where we choose to look and focus our attention is where we go. Looking to the far end of the curve ensures the rider makes the right moves in the moment as the road comes too fast and furious to mentally process. Gaze at an object and your tires will hit it; look down a second too long at the road in front of you and you will meet it personally.

Vision and strategy are like that. We lead best when we have our gaze fixed on the future to make the right moves in the present. I believe General Managers are hired to operate in the present and to think in the future. The confusion comes when trying to figure out how to do that successfully when we as leaders are pulled in all kinds of directions. How we make sense of the road of leadership coming fast and furious is dependent on where we put our attention.

Analogies eventually run out of road, so setting aside the idea of sitting atop a machine let’s make the transition to that of a General Manager. That is, to make sense of the complexity of leadership to enable us to lead with confidence.

The data set I reference comes from my work as an executive coach for managers across the country as well as the results of KK&W Culture Surveys we administer prior to searches. Viewed together, a picture of what clubs require in leadership becomes clear. Regardless of the type of club a General Manager is leading, the concerns are common. They know they must be an inspirational leader for operations as well as a strategic partner with the board. Similarly, there is a commonality amongst club boards as they identify the attributes they value most in a General Manager. It is satisfying to note that there is harmony between board expectations and the aspirations of the executive.

While recently speaking to the Greater Michigan Chapter of CMAA, I proposed that General Managers and their leadership teams adopt a mindset that intentionally embraces problems and challenges to create a culture of excellence. I have found that there is a misunderstanding of the nature of culture, thinking it is just about feelings and atmosphere. Although there is truth in that line of thinking, the reality is that culture is knitted together and becomes resilient through systems and processes. Embracing problems and challenges as the gateway to new and better ways of operating requires leadership to make corrections systematically. This is where the value lies for the General Manager and their team.

Leadership in a nutshell is about operations, governance, and the culture that binds the two together. We do best as General Managers when we put our focus on the future by nurturing and protecting the culture of our clubs in the present. Culture affects everything we and the board try to accomplish, so it is worth our while to give it our utmost attention. Culture comes before strategy. An important truism is that a healthy club culture is necessary to enable the execution of brilliant strategies.

The best academic minds writing about culture stress that as vast and as complex as an organization’s culture is, leadership can only engage the culture for its improvement through the curious inquiry about why a problem is present and persists. As the Executive Manager of the Detroit Athletic Club, I was committed to protecting and nurturing the culture of the club.

I viewed it as my and my team’s most important job. Just as a club president sets the agenda for the board, a General Manager sets the agenda for the staff of the operation. This is where the flow of good leadership produces something new and better.

As we carve a road through the “twisties” of club leadership, it is critical for the General Manager, the management team, and the Board to embrace problems and challenges. Embrace means to put your arms around something and give it your best. If we don’t, the future will come fast and furious and we may unintentionally meet the hard unforgiving reality of problems undetected.

Contributed by J.G. Ted Gillary, CCM, CCE, ECM, CMAA Fellow. Ted is a search and consulting executive with KOPPLIN KUEBLER & WALLACE.

BoardRoom Magazine – November/December 2023

Private Club Leadership in a Nutshell2023-12-12T17:33:38+00:00

Building an Effective Search Committee

Building an Effective Search Committee

A smooth, effective and trusted hiring process should be the goal for any private club embarking on a search for its next executive leader or department head.

The club’s overall success depends on hiring the most qualified candidate who is the best fit for the leadership role.

Based on our firm’s experience in the private club executive search business since 1997, one of the most important factors determining the success of the leadership hiring process is the makeup of the search committee.

The search committee can make or break the effectiveness and efficiency of the executive search process. Members serving on this committee should be purposefully and carefully identified to ensure the best possible outcome. The club should require that these committee members meet certain conditions and be willing to invest the time and energy necessary for the commitment. Those serving on the search committee should be aware of their significance in the success of the hiring of the next executive leader or department head.

When selecting search committee members, confidentiality is of utmost importance. It is as imperative as finding the best candidate for the job. Search committee members should always maintain confidentiality and never reveal information about the candidates or their current positions before the club makes an official announcement.

Even an inkling to a friend or colleague who may know a candidate, or knows a member at a candidate’s current club, could jeopardize the search. Candidates’ jobs could be at stake, the risk of losing exceptional candidates in the search may be high and organizational credibility could be damaged. For this reason, only trusted members who will provide complete confidentiality should be invited to serve on the search committee.

The composition of the search committee should have representation from various demographics and club constituencies, including active members who represent a variety of the club’s programs.

Typically, frequent users of the club and a cross-section of tenured, senior members and younger, newer members are recommended. Members serving on club committees likely understand how the management/governance works and are committed to the betterment of the club.

Finding members who enjoy and support the club and who will positively represent the club is ideal. These members will interact with candidates.

While the committee is interviewing candidates and determining their capabilities and fit in the role, candidates will be observing committee members to determine if the club culture and members’ mentality are compatible with their career goals. We often say the more chamber of commerce-type members on the committee, the better.

We recommend at least five but no more than seven members make up the search committee. Odd numbers are best in case of a tie, and the fewer the members the better because of the discretion required. Too many opinions often hinder the efficiency and effectiveness of the process, offering another reason to keep the group tight.

A lot of time, effort and commitment is required of the search committee, and it is a responsibility that should not be taken lightly. These members will receive a substantial amount of information about candidates, including resumes, questionnaire responses, professional portfolios and behavioral assessments.

It is not unusual for these documents to add up to more than 200 pages. In addition, search committee members will participate in multiple candidate interviews and possibly even dinners or social events with the final candidates. A commitment to participation is a contributing factor to the success of the committee and the entire hiring process.

Lastly, it is important to determine the role of the search committee in advance of compiling the committee. In our experience, a best practice is to have the search committee recommend the final candidate(s) to the board of directors, and then the board meets with the final candidate(s). We recommend the board makes the final decision along with the input and support of the search committee.

All of these factors must be considered when determining the makeup of the search committee. To ensure the best candidate is selected for the job, it is vital to create a smooth, effective and trusted hiring process by establishing the best possible search committee.

BoardRoom – September/October 2023

Building an Effective Search Committee2023-10-20T13:25:34+00:00

Keeping It Simple

Keep It Simple

When it comes to board policies, board decisions and club bylaws, it can be complicated to keep track of everything. For the club executive to be as effective and efficient as the position requires, simplifying governance should be a priority.

Waialae Country Club, Honolulu, HI, compiled board policies with an easy-to-search table of contents. The document details all policies established since 2015 and includes the date the policies were implemented, the purpose, background and supporting information for the policy.

For example: the club’s Golf Group Play Policy was established in 2016 and can be found on page 19 of the Compilation of Board Policies Manual. The purpose, authority, guidelines, delegation of authority and reporting details are included in this section of the manual.

The club also established a Compilation of Board Decisions Manual containing decisions made by the board. This manual explains the intent of each decision, why it was made and how it is to be enforced. It serves as an organizational reference manual so current and future boards and general managers can look back to review or understand board decisions and why policies were created.

Club bylaws can often be complex and full of legal jargon, making them difficult for the average person to digest. Creating a summary or “bylaw cheat sheet” may be beneficial for club executives. Including bylaws regularly referenced, such as the number of days required to notify the membership of the annual meeting, requirements for calling a special meeting of the members and categories of membership may prove incredibly helpful for club executives and/or general managers to quickly reference, rather than having to search through pages of legalese.

Kurt Kuebler of the consulting firm Kopplin, Kuebler and Wallace encourages clubs to create reference manuals like these to enhance board efficiency and effectiveness. “Establishing these documents and updating them regularly ensures consistency as boards and general managers change. These reference materials are easy to create and maintain and can be extremely valuable for simplifying governance.”

Private Club Advisor – September 2023

Kurt Kuebler, is a partner with KOPPLIN KUEBLER & WALLACE, a consulting firm providing executive search, strategic planning and data analysis services to the private club and hospitality industries. Kurt can be contacted at kurt@kkandw.com.

Keeping It Simple2023-12-07T17:27:07+00:00

Clubs Need to Plan and Prepare for Transition

Clubs Need to Plan and Prepare for Transition

At a club, the general manager/chief operating officer position is the most vital for achieving and sustaining a healthy and successful club.

The role responsibilities require a centralized, consistent professional with experience, training and knowledge of the private club model.

Transitioning between club managers can be challenging and stressful for boards, employees and even members because of the delicate balance necessary as the new leader becomes acquainted with all things club yet eases into making changes or improvements. Therefore, it’s essential that clubs prepare and plan for this transition.

Based on our wide range of experience working with boards and professionals during this sensitive time, we have put together the following best practices to help ensure successful departures and acclimations.

Before the new general manager/chief operating officer’s first day, several things should happen. First, club documents should be shared so that the new general manager/chief operating officer can review and study them in the weeks before starting at the club.

Items such as the board policy manual, employee handbook, financials and other documents advising on process and procedure should be provided well in advance to give the new general manager/chief operating officer a greater understanding of club operations and culture.

Sample checklist for advance review:

  • History of the club and map of the property
  • Club policies/procedures/bylaws
  • Talent strategy materials (new employee orientation, employee handbook, employee benefits, organizational charts, training manuals, job descriptions, human capital plan, monthly reports, team bios, etc.)
  • Calendars (club events, board/committee meetings, team meetings, etc.)
  • Collateral, member marketing materials, new member orientation correspondences
  • Recent club newsletters/communications
  • List of board/committee members, board bios, board policy manual, board and committee orientation manuals, committee charters and annual priorities for board and committees, along with the last 12 months of meeting minutes
  • Recent risk management assessment, club business analytics, capital reserve study
  • List of vendors and service providers
  • Strategic plan and property master plan
  • Most recent audited financial statements or financial summary/overview
  • Guest username and password to the website
  • Recent membership/staff satisfaction surveys that include all club operations
  • Union contracts (if applicable)

Second, orchestrate and schedule opportunities for the new general manager/chief operating officer to meet with key club constituencies at a comfortable time and place. Setting these meetings in advance allows the general manager/chief operating officer to meet and connect with key groups, such as the Thursday Tennis Group or the Ladies’ Golf Association, in the new general manager/chief operating officer’s first 30 days.

This ensures that these groups feel seen, heard and valued. It also gives the new leader a feel for the groups, their spokespeople, their priorities and their needs, which helps the general manager/chief operating officer start off on the right foot with these constituencies.

Third, the board of directors should determine ahead of time what the new general manager/chief operating officer’s top three or four priorities will be in the first year. The board should discuss and decide on the areas of focus with the new leader and then communicate the priorities to everyone, including the staff and the membership.

The general manager/chief operating officer then has direction and knows what the board wants in the first year. Having this focus helps ensure the new general manager/chief operating officer doesn’t get different directives from members and is not confused about where to start.

With board-approved priorities presented, the new general manager/chief operating officer can listen to the rest of the members but not necessarily act on their recommendations. Identifying priorities in advance and communicating them effectively keeps everyone on the same page and ensures expectations are in line.

While the above recommendations are important, the key to ensuring a smooth and successful transition for a new general manager/chief operating officer is a transition committee. This ad-hoc committee of three or four members serves as a sounding board, a source of club history and a foundation for support, questions and knowledge.

Committee members should be past or current board members who understand the club business model, are highly regarded by their peers and offer a fair and balanced representation of the membership. In addition, they should be demographically diverse, and their families should participate in club programs/amenities.

When looking at how to organize this group of members, start with one or two members of the search committee, a strong past president and one or two representatives from important constituencies at the club.

This committee acts as a filter beyond the board with the ability to highlight topics members are talking loudly about that are different from what the board or president directed. Made up of no more than four people, the transition committee can also help identify any blind spots the board may not know about.

Kopplin Kuebler & Wallace believes the transition committee can shorten the learning curve and ease the discomfort of being new for the general manager/chief operating officer.

“It’s the board’s job to work with the new leader to agree on three or four areas of focus and then communicate those priorities to everyone. Then, the transition committee can help filter through what everyone else feels is important,” said Tom Wallace, a partner with KK&W.

“This way if an issue arises, the group can help the GM/COO identify whether it’s just one person’s complaint or if the board has blind spots because they aren’t in the know or not well in tune.”

The transition committee can also clarify why things are done the way they are and talk candidly about the state of the club, curmudgeon members and successes or failures. Meeting with the new general manager/chief operating officer weekly for the first six months and then monthly for the next six months, this group provides consistent, confidential support for the first year. After one year, the general manager/chief operating officer may call the group together whenever a need arises.

“We’ve found this committee to be tremendously helpful for GM/COOs to ask questions and gain insight beyond just the board,” Kurt Kuebler, a partner with KK&W, explained.

“Instead of the new leader constantly going to the club president, it spreads the workload between several people and provides deeper insight and understanding. In addition, this committee smooths the transition, especially in situations where a long-tenured predecessor retired or there was a difficult set of circumstances with the person previously in the role.”

The transition committee can also help the general manager/chief operating officer determine how to best disagree with the board or club president, and they can work through that process together. This eases some of the stress and frustration for the new general manager/chief operating officer and creates a better onboarding experience.

First 100 Days - QR CodeKK&W suggests the transition committee initiate an employee survey of at least the key leadership team shortly before the new general manager/chief operating officer begins so both the employees and the new leader understand the expectations and culture of key team members. This survey
could be conducted with all employees to provide a deeper understanding.

“This whole process is intended to create a more positive onboarding experience for the new GM/COO and make it much more effective,” Wallace explained.

“Few clubs have transition plans or written orientation/onboarding programs for this position. All too often, new leaders spend weeks looking for information themselves, being overwhelmed with questions and feeling frustrated as they learn the details of the club and their role. If we can provide new GM/COOs with the information, resources and the continuous support they need right from the beginning, it creates a better situation for everyone involved.” 

The first 100 days lay a foundation for the long-term success of a new private club chief executive. Recognizing the care that should be taken during this time of great opportunity, we have compiled a list of action items to proactively support onboarding and acclimation. 

BoardRoom – May/June 2023

Clubs Need to Plan and Prepare for Transition2023-07-27T19:01:22+00:00

High Tech Achieves High Touch

High Tech High Touch in Club Industry

Recent events have created an opportunity for private clubs to continue to push forward and invest in technology. This trend will gain further momentum as “next-gen” board and committee members expect technology to be leveraged to enhance their experience both as club members and as volunteer leaders, and as club managers demand more technology-based tools to help them and their staffs deliver on those expectations.

FALLING BEHIND
Clubs that remain in the mindset of being “too traditional” for technology will continue to fall behind, but now at a much faster pace. The continued shift toward embracing a high-tech operation is a bridge to establishing the foundation of an elevated and high-touch club environment. Previously, new tech came in the form of physical equipment and techniques such as security cameras or member photos and preferences on the point-of-sale system. But members didn’t really need to see it, and there were times you didn’t even want members to know you had it. Today, members don’t care if they see the technology or have to use it themselves. The top priority is ensuring there is ease in engaging with the club, by leveraging high-tech to create a high-touch experience marked by high levels of customization and convenience, increased speed of service, enhanced accessibility, and members feeling they have more control over their user experience.

These tech features that weren’t being used 10 years ago are commonplace in clubs today:

  • QR codes for menus, events and club information.
  • iPads for ordering, displaying wine lists and signing up for tee times or lessons.
  • Apps for members to interact with the club and access club information.
  • App-based/interactive security cameras. Staff scheduling software.
  • Video training modules for employees, boards and committees.

RECRUITING: CANDIDATES PRIORITIZE TECH
Top candidates for key positions that clubs are recruiting for will look at the tech tools that are in place to help them and their teams be successful. Clubs that are not making technological invest- ments in their operations and amenities won’t attract and retain top talent. Club executives and department heads simply cannot be successful in today’s private club landscape without a proactive technology budget and plan in place.

Top job candidates prioritize the private clubs that embrace technology when considering their next career opportunities. We often hear questions about which tools, resources and amenities are in place. Candidates also want to know how advanced existing online security measures are and what kinds of cyber protections are in place. Communication platforms and forms of technology that help club facilities be more compliant for members and employees are also increasingly important.

Other high-tech aspects that candidates now seek include:

  • Access to industry trends, data and analytics.
  • Human resources and performance-review software.
  • Communication platforms for members and board/committees. Survey and feedback collection platforms.
  • Progressive member amenities such as:
    • Off-course golf entertainment.
    • Wearable fitness/wellness features.
    • On-demand/virtual fitness/wellness classes.
    • Health data collection to measure progress.
    • Flexible office features such as wireless printing, high-speed internet and other conveniences that allow for the ability to work from anywhere.

GOING HIGH-TECH IN GOVERNANCE
There are positive outcomes for clubs that use technology to enhance the effectiveness and efficiency of their governance model. Technology in club governance is allowing boards and committees to be more informed, which results in increased productivity. Embracing technology from a governance perspective also makes volunteer leadership a much lighter lift, thus providing a better service experience overall.

Here are some examples of how technology is now being applied to club governance:

Club managers can more easily distribute articles, podcasts and other relevant media to help board and committee members be well-read about the industry as a whole, versus just focusing on club-specific matters. When board and committee members have access to industry insight, they can make more informed, educated and well-rounded decisions.

Secure portals with dashboards displaying how key performance indicators can be tracked, along with other key data, provide real-time insights on progress. The highest performing clubs are now using key performance indicators on three levels: board, committee and per operational department. This enhanced reporting is easier to read, and access to it allows board and committee members to be more informed, leading to more efficient meetings.

Secure and live communication platforms are helping boards proactively address problems as they arise, rather than waiting for meetings to hash out challenges. Real-time messaging is a more high-touch way to address member and staff issues and allows situations to be dealt with promptly. In addition to enhancing communication, technology also allows club leaders to track feedback and situations, document a plan and close the loop. This makes handling difficult situations more comfortable and consistent for members and staff.

Access to board and committee training materials is the wave of the future. The days of big binders and packets of paperwork have passed. Virtual onboarding and training for roles and responsibilities is saving time and offering volunteer leaders the convenience of reviewing the instruction on demand. Again, this makes live retreats more efficient when participants arrive prepared and it also offers accountability tracking for the club. This is great news from a legal-verification standpoint and allows for review of each person’s commitment to the club’s best practices.

WHAT’S STILL AHEAD

Overall, clubs will have to lean more toward high-tech going forward, because it will be necessary to provide high-touch member experiences that members enjoy and expect. Here’s a list of tech features we think most clubs will need to integrate in the next 10 years or sooner:

  • Online voting.
  • Beacon technology.
  • Geofencing.
  • Two-way text message communication.
  • Platforms that gather instant feedback from members about their experiences at the club.
  • Advanced software for data analytics and reporting to collect, track and analyze data to support decision-making.
  • HR/management and performance review software.
  • Advanced security cameras that provide easy-to-access footage, options to search specific objects or people, and immediate notifications when security parameters are breached.
  • Staff-recruitment software that allows applicants to communicate via text and instant messaging.
  • Kitchen display systems that replace printed tickets and track performance stats.
  • Mobile point of sale.

Technology is a critical aspect that significantly affects both the member and employee experience. While it must be unobtrusive and not prohibitive, technology is the key to taking care of members and creating outstanding experiences for all.

Club Trends – Winter 2023

High Tech Achieves High Touch2023-02-20T13:12:15+00:00

The Future of Work in the Club Industry

Future of Work in the Club Industry

With the societal shift in how and why people work as a result of the pandemic, many business leaders are restructuring and reevaluating their organizational charts. As fewer people are willing to work long hours and sacrifice their work-life balance, and as Baby Boomer and Generation X managers retire, the hospitality industry as a whole is having a harder time finding people to fill vacant positions, especially in management. Club search firms are busier than ever and have to get creative in their recruiting practices to provide a strong pool of qualified candidates for open positions.

As the centralized leader, the GM/COO position can often be the most important for ensuring a sustainable and successful future of the club. During a panel discussion at a recent educational event for club executives, one industry professional questioned whether the GM/COO position was set up to fail. Due to the constant turnover of board members, the rising expectation for exceptional service, the labor shortage, the need for heightened business acumen (such as data collection and analytics), the requirement for managers to be visible and available to all members, and the increasing importance of coaching and mentoring employees, some argue there is an unrealistic expectation for what one person can successfully achieve. Couple this with the fact that most people are prioritizing work-life balance more than ever before, and it’s no wonder why the average lifespan of a GM/COO at a club is only four to six years.

What can clubs do to address this issue? According to Tom Wallace of Kopplin, Kuebler & Wallace (KK&W), education is the key to all of these obstacles. “As an industry, we have to do a better job of educating our members, boards and leadership teams about the realities of our industry and making sure everyone’s expectations are in line.” He notes that GMs/COOs and boards/club presidents need to have regular conversations around what visibility means to them, what their expectations are for the GM/COO and what boundaries need to be in place to ensure work-life synergy is possible.

“We can’t burn through managers and expect positive results. It is essential to set strong governance practices and then make certain open, honest communication happens regularly,” he said. The KK&W firm is seeing clubs (and the hospitality industry) trend toward hiring more assistant managers, more assistant golf pros and more managers throughout the operation and spreading the work load and hours between them. Where previously a club may have employed one assistant general manager working 70-80 hours per week and making upwards of $150,000, today and in the near future it may be more like two assistant general managers each making $80,000 and working 40-50 hours per week.

To ensure a positive future, according to Wallace, clubs should prioritize investing in assistant managers across all departments and build them up. “These people are our future GM/COOs,” he pointed out. “It is important we develop them and create positive work experiences so we can keep them.” He also urges clubs to start planning for all employees to have two days off each week and at least one weekend each month to provide balance and avoid employee burnout. “Investing in employees and recognizing that they are assets enhances the club culture and drives mutual loyalty, which is ultimately what all clubs desire,” Wallace concluded.

Private Club Advisor – February 2023

The Future of Work in the Club Industry2023-02-02T19:42:52+00:00
Go to Top