|
|
| Boards of directors are the key to success for private clubs. It’s a point that’s been made again and again, not only in Publisher’s Perspective, but also in the writings, opinions and thoughts of many others who intimately know the private club industry. |
| Why? Well there’s a legion of reasons, not the least being the fact a strong, cohesive board can give a private club the thrust, the drive, the impetus…call it what you wish, and the vision to achieve its mission…its goal. |
|
How do clubs get their boards to address the many critical issues facing clubs…to lead the way to a successful future? How do club ensure they have a strong cohesive board? How do you get your Board on Board? |
| So you ask: what does that mean, really? The experiences of board members are probably the quickest and easiest ways to explain. For example, as a board member, how many evenings have you frittered away, sitting around a board room table, and then leaving with the feeling that little if anything has been accomplished? |
| Ever spend an hour or two debating and discussing an issue without arriving at any concrete solutions? Have you been a victim of a petty, trivial and personal agenda that has no value being discussed at a board meeting? |
| This is where it begins. This is where the board has to be on board. This is where the focus has to be on what we call “stewardship,” where the objective is strong, focused decision-making that provides leadership and stewardship for the club now and in the future. |
| Greg DeRosa, general manager, Boulder Country Club, Boulder, CO is of the opinion this stewardship starts long before a director is voted into office, during the process of nominating prospective board members. |
| “It is critical that the process is well developed, defined, and managed to ensure the best candidates with the proper motives and skill sets are on the ballot for director positions. Once a qualified ballot is determined, the members select from the very best pool of peers to represent them and the club for the next three years.” |
| DeRosa believes “integration is the key to creating an environment for new board members to be successful and truly contribute to the long-range health of the club. In my experience, the more we can do initially to expose new directors to structure, systems, policies and procedures…the more they are able to assimilate and contribute in a much shorter time frame.” |
| It’s also his opinion that “diversity is crucial to developing and maintaining a strong productive board. |
| “Boards consisting of members from different walks of life and industry tend to be the most beneficial to the club. The differing viewpoints almost always lead the club in a more positive direction,” DeRosa opined. |
| Gregg Patterson, general manager of The Santa Monica Beach Club, suggests several characteristics lead to a strong board. |
| “Good boards have a “marketing mentality,” that is, they actively seek understanding of member needs now and into the future. Board members accept their role as “hunter-gatherers” of information from the general membership, from their peers in other clubs and from the management and employee teams,” Patterson said. |
| “They walk, talk and read continuously to get the pulse of the membership. Good boards limit themselves to policy but oversee the administration of those policies. A strong board is clearly perceived as the “one in charge,” is accessible to the general membership and is willing to act decisively when the time for action arrives.” |
| Patterson stresses the board must avoid micromanaging the administration, and instead create a synergistic relationship with the general manager and the leadership team. |
| He feels “a successful board is built on the experience of its members at the committee level; on their willingness to engage in ongoing collaboration with the general membership, committee members and management team; their enthusiasm for asking questions of members and staff alike; their balanced approach to issues; their enthusiasm for “digging into” problems; their strong ethical foundation; their ability to “do research” by reading, questioning and active listening; their willingness to make decisions on tough issues when needed; and their ability to listen for feedback once those decisions have been made.” |
|
“Thus, the most effective boards seem to be composed of directors from a broad spectrum of professional and business backgrounds, as well as the diversity of the membership. In addition, boards should be large enough to ensure equitable assignment of responsibilities and to allow for annual turnover,” said Sue Wegrzyn, president and CEO of the National Club Association, Washington, DC. |
| Qualities Barry Peters sees as the underpinnings and commitment for the stewardship of private clubs, which affects not only the present, but also the future of the clubs. |
| “ |
| “A strong committee process, one in which “the larger club issues” are aired, is fundamental to getting board members “on board” before they’re ever selected,” Patterson added. “Involvement for years in the committee trenches is fundamental to director success. |
| “Those selected need to have a proper orientation in “need to know” issues: What is the “state of the club?” What big decisions were made of late? What volatile issues now exist? What problems are anticipated in the coming year, Who should they talk to and what should they read? |
| “New board members should review the communications tools that are used regularly to inform and to educate board members. In our case (that is, in the case of The Beach Club), the weekly Board Update, background white papers, policy book and minutes for the board and each committee,” Patterson said. |
| “ |
| So what is and how vital is the role of management in getting the board on board? |
| “Absolutely critical,” DeRosa says. |
| “If a general manager or COO is truly leading and providing for their club and board then they must be the impetus and guiding light throughout the entire process. Clubs are no different than any competitive industry, the individual at the top of the organizational chart needs to communicate with and nurture all of the populations they serve to ensure the long-term health of the organization,” DeRosa commented. |
| “A true COO of any organization would be at the forefront of director integration and communication. I feel the management team’s involvement and relationship with the board of director’s is also critical. Getting to know key personnel, their personality, philosophies, and operations are so important for a director’s ability to positively impact the entire club organization. Remember, most directors come from a specific industry and may have never had exposure to the many functional departments that comprise a club. |
| “Our ability to expose and welcome them into our environment builds trust, respect, confidence, and ultimately a much more productive forum in which to achieve our mutual goals,” DeRosa stressed. |
| Wegrzyn says the chief executive has to keep the board focused while at the same time relieving it of the “minutia of daily operations. |
| “Interaction between volunteer boards and managerial professionals generally is driven by the club’s internal culture. However, directors should remember that the person they choose to manage the club will be the staff member working closest with them. Thus, the staff executive performs a paradoxical function – as a “partner” of the board and as its taskmaster.” |
| Thoughts that dovetail with Patterson’s because the “general manager is paid to write, to talk, to gather information, to digest that information and to distribute insights to those who are making policy. The general manager must be actively engaged as a “hunter-gatherer” of information,” Patterson added. |
| “They must be the catalyst and an “agent provocateur.” I believe that the general manager is the investigative reporter for the board, their “eyes and ears” within the staff. They are the institutional memory of the club. They are the trench diggers who understand how strategic directions are built one decision at a time. They need to be reflective practitioners who explain how the “big picture” is revealed in the day to day experiences of the club. Great boards will have great managers to educate, guide and support their strategic efforts,” he added. |
| Clearly the CEO, general managers and others on the management team have a strong role to play but there’s another major factor involved in this discussion…emotion. |
| “Emotions show that people care,” Patterson suggested. “ Boards and managers need to care deeply about their clubs and emotions are naturally expressed when people care. Decisions will always have an emotional component. The key is “constrained expression,” that is, emotions should be used to provide emphasis and nuance in the support of logic. Such emotion should be encouraged. Emotion that overwhelms logic should be avoided. Balance is needed.” |
| DeRosa sees “emotion as part of the human condition. Without it we are dispassionate and disconnected with reality. Too much of it, not properly funneled, can derail the process and progress. |
| “I believe it needs to be managed by all of the participants, but the tone of acceptability needs to come from the president, executive committee, and the COO. An overly-emotional board can lose focus on what is truly in the best interest of the club,” he opined. “I believe passion is a more productive term for adherence to one’s beliefs.” |
| Emotions, not properly channeled, also lead to personal agendas in Peters’ opinion. |
| “Individual agendas that come from emotions do not help the health of the club. These are emotions spawned out of selfish goals not selfless acts of stewardship. Sometimes, for whatever reason, board members make it a goal to do one thing that they and a few people think is the right thing,” Peters said. |
| “These mini-agendas can cause the direction of the club to lurch from one pet project to another. These agendas that become emotional, destroy the moral of the staff and other board members. Leave your personal agendas out of the BOARDROOM! It is the members club! You have been chosen as a steward of the club not a dictator. |
| “However bring your emotion and passion for the traditions of the club and the continued growth and progress for the club. This type of “objective emotion” is stewardship,” Peters commented. |
| It is also this kind of involvement that makes strong board that make decisions based from the point of view of stewards for the club. |
| Publisher's final thoughts |
| So there are keys to success in getting boards on board, beginning from the day members make the commitment to work for the betterment of the club. |
| It’s not something done in isolation, but rather in concert with other committee members, board members and the club’s professional management team. Be in tune with the past, the present and the future of the club. Arm yourself with the knowledge and intelligence of the club’s experiences and traditions that allows for a stewardship, building the blueprint for the future. |
| But we leave the final words to DeRosa: “The professionalism and performance of the COO and the management team is ultimately the conduit to enhanced board relations. The more skilled we are at conducting and managing the affairs of the club’s business in all areas of competency, the better and easier it is for the board of directors to be a positive visionary influence on the club’s evolution. A little self-accountability goes a long way to enhancing board relations.” |
| 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 john@apcd.com. |
| John Fornaro Publisher |