Boardroom Magazine

Let's Play Pig in the Middle
How to Improve your Board's Relationship with your GM

Caught in the middle…not a comfortable position, but not an unusual position for a general manager of a private club. It's sort of like the kid's game "pig in the middle," you don't get out of the middle until you catch the ball, or knock it down.

The general manager or chief operating officer is that person in the middle as the buffer…the influencer…the point person between the members and the board of directors in the private club. At the same time, the GM has to work with a volunteer board of directors to achieve the goals and objectives of the board and the membership…a relationship that's vital to a club's continued success.

As a GM you don't get out of the middle until you "catch the ball."

There are many factors influencing the relationship between a board and the GM, not the least of which is the board's daily intrusion into the management of the club's operations. It's a situation of where a board is not satisfied with establishing policy and giving the GM the tools to do the job, but where the board, or members of the board inject themselves into micro-managing the daily operations. All of which causes distress for boards, management and members. Why does it happen?

There's a need to articulate policies, roles and responsibilities but these must flow from a beneficial relationship between the GM and the board of directors. So the question is: How can the board improve its relationship with the general manager to make it more productive?

It's a matter of trust, says Richard Kopplin, president of Kopplin Search Inc., based in Scottsdale, AZ. There may be a high turnover of many private club positions, but at the same time there are "some general managers who have served five to 10 years in every positions they've held," he said.

"I believe the secret to any long tenure is the general manager's ability to build trust with the board of directors." And to make that trust relationship happen there are a number of strategies to develop.

Norm Spitzig, a principal with Palm Beach Gardens, Fla.-based Master Club Advisors, a private club executive search firm, suggests the key to improving the relationship lies in the board "better understanding the full scope of today's general manager's authorities and responsibilities." Reaching this understanding begins with board members completing an orientation that more fully clarifies their roles. "Interestingly enough," says Spitzig, "any reluctance on the club's part to take this step comes, more often than not, from the general manager rather than members of the board.

"Board members, for the most part, really want to improve their relationship with the GM and are willing to do what it takes to achieve this important goal."

Communication, he stresses, is another factor. "A board can significantly improve its relationship by providing regular, honest feedback on the GM's performance. An open, candid evaluation process including a forthright discussion of areas needing improvement, will prove a valuable tool for both improved performance and increased loyalty to the club," Spitzig related. And this he feels has to dovetail with a clear definition of roles and responsibilities. "This effort on the front end will help minimize misunderstandings and confusion, and in so doing, produce more productive and satisfied management."

That role clarification is essential is emphasized by Tarun Kapoor, CEO of Kapoor and Kapoor, a hospitality consulting firm based in San Marino, CA. It's a triple layer of clarification and accountability.

"The general manager, the executive committee and the board each must know what they're responsible for, have the authority to do what is necessary, and know what they will be accountable for." The lack of role clarification is where there is often confusion within the private club structure.

"Roles must be articulated and then enforced," Kapoor said. "Problems invariably come up when volunteers feel they have the right to execute decisions affecting the club's resources, yet they may not have the authority to make the decision."

What does Kapoor suggest? "I'd recommend the role of the board and/or volunteers, be one of setting the strategic direction, establishing club operating guidelines then ensuring management and/or volunteers are operating within the guidelines, and supervising, auditing and managing the GM or COO."

However, for all this to happen it goes back to the point emphasized by Kopplin…TRUST, and there are eight strategies he feels are vitally important in developing a high level trust relationship between the board and the GM. A better, more productive relationship, Kopplin suggests, revolves around these strategies:

Professional visibility: As a young general manager I recall one hot and humid evening walking into the dining room with my tie loosened, sleeves rolled up and perspiration showing on my shirt. I was not aware of my slovenly appearance or maybe subconsciously wanted to demonstrate to the club members "how hard" I was working into the evening hours. After recognizing and greeting the club president, who was dining with guests, I visited a number of tables. I thought I had done a very good job of "being visible" until my club president met with me later in the week. He told me he was embarrassed to introduce me to his guests because of my "disheveled appearance." From that point on whenever I was visible in the dining rooms or for that matter any area of the club where I might encounter members or guests, I was appropriately groomed and attired. And so were all of the other department heads of our club.
Financial ability: One of the most effective ways a manager can build trust with a private club board is to demonstrate the ability to run the "business" side of the operations. During our annual audit by an outside CPA company, I often asked more questions of the auditors than they asked of me. I wanted to understand the accounting principles that could improve the operations of our club and I viewed the auditors as our club partners in that process. At the end of the audit the CPA firm would write their report and after reading it I always took the opportunity to respond to the auditor's comments in writing.
BIG Guests: This acronym stands for Board Invited Guests. When I was managing clubs our golf professional would copy the tee sheet for the next day and yellow highlight any board members' names who were bringing guests the next day. The dining room manager would do the same for board members making lunch and dinner reservations for the following day, preferably including the names of the guests accompanying the member. I would insure I was available to greet the board member and his/her guests by their names. Why? Because I truly believe that it is one of the few ways a general manager can recognize and thank club board members for the time and effort they have given in volunteering to serve their club.
Communicate: The best club general managers understand that "the best surprise is no surprise." They will communicate with their club president on a regular basis but certainly once every week. E-mails have allowed for easy, daily communication and there is no excuse for a club president to not be aware of any major issues developing at the club, which may need his/her attention. The key to any communication is understanding and it is important that club managers clearly identify issues and their solutions in a manner that allows the club president to grasp the key points completely.
On Time Management: The general manager needs to be a "clock leader." He/she should set the example of beginning all meetings on time and limiting the length of committee and staff meetings to a pre-agreed period. There is no faster way to build credibility (or to lose it) than beginning a meeting exactly at the scheduled time, whether or nor all of the participants are present. In fact, it is a disservice to those who were punctual when the start of the meeting is delayed only to benefit those who inconsiderately wander into the room at will.
Office visit: Many successful general managers are in the habit of visiting the office of their club president rather than always meeting at the club. For some reason the dynamic of the general manager/club president relationship changes for the better when an occasional meeting can be held on the club president's "home turf." If the club president has retired then a visit to his/her home is a good substitute.
Action plans: Like any other business, there is a certain amount of "process" that needs to happen in the private club. The best way to address issues and implement solutions is the use of "action plans." These plans outline in writing what the appropriate club committee and the general manager are recommending to the board for their approval. They are typically developed from the committee agendas and will address the wide variety of issues in any club. The key is to make sure these action plans are in writing and become part of the board meeting agenda.
Educate: Most club managers are interested in pursuing ongoing education in their profession and typically achieve that knowledge by their participation in the Club Managers Association of America educational offerings. It is vitally important that general managers share with their club president and club board members the significance of their participation in the CMAA educational programs.

Publisher's final thoughts

For sure, opinions vary, but boards need to fully understand what a general manager's roles and responsibilities are in the private club industry today. These roles must be clarified so the GM, the executive management and the volunteer board of directors each are fully aware of their responsibility and authority. And ultimately, there must be a firm trust relationship, as Richard Kopplin suggests. When this happens, general managers flourish, boards flourish, the club's culture flourishes and that means continued success for the private club. At least, that's the way I see it!

What's your opinion. If you wish to respond to the Publisher's Perspective, or other BoardRoom articles, contact Publisher John G. Fornaro by email at johnf@apcd.com.

John Fornaro
Publisher