The Board of Directors and the General Manager/Chief Operating ...

Exhibit 8The Board of Directors and the General Manager/Chief Operating Officer 57Checklist for Preparing a Board Meeting AgendaWhen preparing a written agenda for a board meeting, a club general managershould check to be sure that:• The agenda contains a clear indication of why the meeting is being called.• The agenda is sent out in advance to everyone expected at the meeting.• Relevant supplementary material is attached (reports, statistical information,proposals).• Time is reserved for announcements.• It says who is running the meeting.• Time is reserved for breaks during long or unusually difficult meetings.• Time is budgeted for each agenda item.• There is an explanatory line or two after each agenda item to set the tone of thediscussion.• The agenda follows a consistent format for each meeting.• The agenda identifies the type of action that must be taken on a given agenda itemwhen necessary (a recommendation, an assignment, a decision, and so on).• The agenda clearly identifies the location, starting time, and ending time of themeeting.• The names of individuals making reports are clearly noted.• The agenda avoids technical terms that might not be understood by all boardmembers (or explains any technical terms used).• Guests making presentations are placed early on the agenda so that they canleave when their presentations are complete.At many clubs, it is the general manager who puts board meeting agendastogether, subject to the approval of the board president. (Exhibit 8 contains tipsoffered by club general managers for preparing a board meeting agenda.) Althoughputting an agenda together every month can be time consuming, many generalmanagers welcome this responsibility because it gives them a measure of controlover board meetings and helps them keep board members focused on policy andgovernance issues and away from the temptation to manage the club.Many general managers recommend that board meeting agendas be asdetailed as possible. For example, instead of simply listing “Treasurer’s Report,”ideally an agenda should list something like the following:Treasurer’s Report—15 minutesFinancial Review. (See the attached statement.)Capital Requests. The grounds committee is requesting a supplemental airconditioner for the Kaiser Building.

58 Chapter 2Information Item. The accounting department has just completed a selfaudit.(See the attached report.)Delinquent Accounts. This month we have four delinquent accounts. (Seethe attached report.)Just putting down “Treasurer’s Report” is too vague. It doesn’t outline what theboard members are expected to concentrate on, which tempts some board membersto wander and unnecessarily prolong the meeting. If agendas indicate theexpected length of the meeting with a starting and an ending time, board memberswill have an idea of how much time they should devote to a given topic. Sometimesevery agenda item is given an estimated time, as with the example just given(“Treasurer’s Report—15 minutes”).Another tip from club general managers: only list committees on the agendathat actually have something to report. (The general manager can check with committeechairpersons before putting the agenda together.) Traditionally, the boardmeeting agendas at many clubs listed every club committee, month after month.With that format, all committee chairpersons felt they had to give some sort ofreport, even if they didn’t have anything to say, which put some of the chairpersonson the spot and slowed the meetings down.Determining in what order to place items can also present general managerswith a challenge. There are many ways to arrange an agenda. In the past, boardmeeting agendas typically started with the approval of minutes, then moved onto committee reports, old business, then new business. Some club general managershave suggested a new agenda model that facilitates the flow of discussionand schedules difficult items for when board members are freshest. This “action”agenda model is structured like this:• Announcements (15 minutes or less). These are quick items that require nodebate. Announcements could include everything on the consent agenda(an agenda listing everything that will be voted on without discussion). Byquickly dealing with these items, the board meeting’s facilitator (typically theboard president) helps board members start to focus their attention on boardmatters and away from their outside concerns.• Easily discussed items (15 minutes). These are black and white issues that canbe addressed quickly. Dealing with these items early in the meeting helps theboard feel that progress is being made and can establish a sense of momentumand teamwork.• Most difficult item (25 to 40 minutes). This is the hardest or most controversialitem on the agenda. It’s usually something that needs a lot of discussion orrelates to a long-term need of the club. The facilitator should first state whatis expected of the members—discussion only or a decision. Board membersshould then be given a chance to air their viewpoints.• Break (10 minutes). This is a chance for everyone to take a breather and think aboutthe current discussion. It also allows for some behind-the-scenes persuasion or

The Board of Directors and the General Manager/Chief Operating Officer 59politicking. Board members might also take this time to smooth over any controversiesraised during the debate.• Most difficult item, continued (20 minutes). After the break, the discussion of themost difficult item is continued. Important points can be repeated and writtendown. If the board’s goal is to make a decision, the facilitator can call for a voteafter this discussion period.• Discussion-only items (30 to 40 minutes). This is the time to introduce new topicsor present committee and other reports. Placing committee reports near theend of the meeting, when people are getting eager to wrap things up, can helpkeep the reports short.• Least difficult items (10 minutes). These items are ones that can be quickly votedon. Putting least difficult items at the end of the meeting can leave boardmembers with the feeling that they can decide things efficiently and quickly.It ends the board meeting on a high note.Many general managers feel strongly that a board meeting’s agenda shouldbe mailed out to board members before the meeting. This gives board members achance to review the agenda and do any research they feel is necessary. Mailingthe agenda out ahead of time can save a lot of meeting time when the board getstogether. Clubs that follow this practice have discovered that their boards act morequickly and table fewer issues because board members arrive informed and readyto tackle the challenges they face.The General ManagerA club’s board governs the club, establishing policy; the club’s general managermanages it.Historically, most major management functions of a club were handledby committees who hired secretaries, stewards, or caretakers. These positionsevolved into the first club manager positions. In most of these positions, the firstmanagers had responsibility for only the clubhouse and food and beverage operations.Often the golf professional and perhaps even the golf course superintendenthad as much or more administrative responsibility as the manager. All three ofthese positions (manager, golf professional, and golf course superintendent) eachreported to the board of directors of the club or perhaps to individual committees.No one position had responsibility for overseeing all management responsibilitiesof the club operation. Conflict often developed and no clear lines of authority andresponsibility existed.Then in 1927, the Club Managers Association of America was formed byclub personnel who wanted information, education, resources, and a professionalnetwork. At the time, training for the club manager was limited to a few hotel andfood and beverage programs. CMAA developed a professional development programto help managers become the leader of the entire club operation.In today’s club world, it usually takes formal education and some practicalexperience to attain even an entry-level management position. Today, one of the

60 Chapter 2Exhibit 9Getting Started at a ClubThe following list is certainly not exhaustive, but gives some examples of actionsa new general manager can take to get off to a good start at a club:• Get to know your staff members as quickly as possible. It might be a good ideato have a private “get acquainted” meeting with each staff member.• Be visible. Circulate through the club each day for at least an hour, chatting informallywith club members and staff members.• Hold well-organized weekly staff meetings.• Communicate with your board. A weekly written status report might be a good idea.• Inspect the club each day.• Familiarize yourself with upcoming club events.• Learn about the club’s traditions.• Don’t rush to implement change.Source: Adapted from “A Manager’s Staying Power,” Executive Career Services Kit: For Member Use inSelecting a Club (Alexandria, Virginia: Club Managers Association of America).first steps to becoming a club general manager is to get a degree at an accreditedschool with a hospitality curriculum; some colleges offer specialized training inclub management. Many club general managers began getting practical club experiencewhile still in college—often as dishwashers, cooks, or food servers. Fromthese line-level positions, club management students can be promoted into supervisorypositions, with promotions to assistant manager positions possible aftergraduation.Club management is a service profession. To excel, a club general managermust genuinely like people and enjoy serving others. Other characteristics of asuccessful general manager include integrity, creativity, and dedication. He or shemust possess social and leadership skills, be a good communicator and administrator,and be able to communicate a club’s vision.Starting a New JobThe first six months on the job are critical to a general manager’s success. Thisperiod is the general manager’s “honeymoon” with the club’s board, and is also thetime during which the general manager establishes relationships with the club’sdepartment managers, club professionals, and employees. Exhibit 9 is a checklistof things a club general manager can do to get off to a good start at a club.It’s important for a new general manager to establish his or her credibility assoon as possible. For the first three months, it may be a good idea for the generalmanager to be the first to arrive at the club and the last to leave. Successful generalmanagers say this is important because it shows the club’s staff members that youcare as much as they do.Unless they encounter a drastic situation, new general managers should notrush to make changes. New managers usually will quickly see things that they

The Board of Directors and the General Manager/Chief Operating Officer 61want to change, but it is wise to go slowly at first. Changes made too fast, or simplyfor the sake of change, can upset the routine and rhythm of a club.Some club general managers recommend that new general managers writeweekly status reports and fax them to their board members. They also suggest thatnew general managers visit with board members individually to get their input.Establishing good lines of communication with the board is a top priority and willhelp keep transition problems to a minimum. It is also important for new generalmanagers to find out if there are any groups of unhappy members at the club. Difficultsituations can often be defused if the general manager talks to members ofthese unhappy groups to uncover the source of their discontent.Club tradition is important to many club members, even though sometraditions may seem unimportant or even comical to outsiders. For example,one private club has a rule that states that the club will serve vegetable soupevery Wednesday and, according to the general manager, “there’s never been aWednesday in the past 120 years that the club has not served vegetable soup.”Members usually feel a sense of ownership in their club and the history and traditionsthat they have helped build and sustain. That’s why a new general managerwill not make friends (or keep a job long) if he or she comes in, denouncesthe club’s traditions as silly or impractical, and proceeds to “update” them oreliminate them entirely.Because traditions are rarely written down, it can be difficult for a generalmanager to know when he or she is treading on sacred ground. New general managersshould take the time to talk to staff members, board members, and others tofind out what the club’s traditions are. It’s also a good idea for new general managersto write the traditions down; this will give the managers something to refer tountil they’ve learned the traditions.If a club tradition has a negative effect on the club, the general manager mayeventually be able to propose starting a new tradition to replace it. This is often amore effective strategy than trying to simply eliminate the tradition.Chief Operating Officer ModelAs the manager made professional strides over the years, CMAA promoted theGM/COO concept. The general manager/chief operating officer is held accountablefor all areas of the club and ensures the synergism of all club activities. Thisperson becomes the board’s bridge to the staff and committees and enables a boardto avoid the intricacies and short-term focus that is the staff’s responsibility.Historically, managers needed to possess the characteristics of:• Honesty.• Integrity.• Accountability.• Leadership.• Dedication.

62 Chapter 2They had to be able to demonstrate interpersonal relations skills, be a good communicator,be administratively competent, and be able to communicate the club’svision.As clubs became more diverse in the services offered to their memberships,club managers developed the leadership and technical skills to lead the club operation.CMAA geared its lifetime professional development program to providingthese skills and equipped the manager to indeed become the GM/COO. Theydeveloped the following competency areas:• Private club management• Human and professional resources• Accounting and financial management• Management• Marketing• Governmental and external influences• Building and facilities management• Food and beverage operations• Golf/sports, and recreation managementClub members began to accept the GM/COO position, recognizing the need forone competent person to be in charge of the multi-million dollar businesses thatclubs had become.Management to Leadership ModelToday, the GM/COO role has expanded beyond club operations. Two equallyimportant areas are asset management and club culture.A true leader takes stewardship or responsibility in all three areas. Throughnot revolutionary, an evolved concept of the GM/COO has become the managementto leadership model. Exhibit 10 shows what this model looks like. CMAAdeveloped this model to address the changing role of managers. Many considerationsmust be explored to accurately construct a management model based onreality and ideals.Under this model, the GM/COO competencies are all listed as the foundationaloperations part of the pyramid. In the second tier, managers must masterasset and investment management competencies such as:• Managing the physical property of the club.• Managing the financial well-being of the club.• Managing the human resource needs of the club.• Maintaining a comprehensive portfolio of club assets, both tangible andintangible.• Managing cash flow.

The Board of Directors and the General Manager/Chief Operating Officer 63Exhibit 10 Management to LeadershipLeadershipCulture• Vision• History• Tradition• GovernanceAsset ManagementFinancialManagementPhysicalPlantHumanResourcesOperationsPrivate ClubManagementHuman &ProfessionalResourcesManagementMarketingFood & BeverageOperationsGolf/Sports &RecreationManagementAccounting &FinancialManagementBuilding & FacilitiesManagementGovernmental& ExternalInfluencesManagement• Overseeing and planning facility renovations and new construction.• Directing sports and recreational properties and facilities such as the golfcourse, tennis facilities, pools, fitness facilities, and spa operations.When it comes to the top of the pyramid, managing the club’s culture, the GM/COO is responsible for maintaining the club’s:• Vision.• History.• Traditions.• Governance structure.

64 Chapter 2These responsibilities evolve the GM/COO into a chief cultural officer who isresponsible for the traditions, customs, and practices of the club. This new manageris intimately familiar with what makes the club unique and how he or she canpreserve the intangible quality of culture.While CMAA is the organization that introduced the concept, it is the GM/COOs who advance it. They practice professional development by developingcompetency in operational areas, asset management, and cultural aspects of theclub. They proactively promote the concept to board and staff, and they live theconcept in their day-to-day management.Working with the BoardThere are many groups and individuals at a club with which the club general managermust work—club professionals, department managers, and club committeemembers are some obvious examples. But, above all, a club general manager mustwork harmoniously with the club’s board of directors. A club’s board provides thestrategic direction for the club that the general manager must carry out. The boardis also responsible for hiring and firing the general manager and providing him orher with regular performance evaluations. Because a general manager reports tothe board, his or her relationship with the board is extremely important.One of the most delicate issues club general managers face in working withboards is keeping board members from overstepping their roles and trying toactually manage the club. How can a general manager discreetly encourage his orher board to stick to governing the club and not interfere with daily operationaldecisions? According to Richard Chait’s How to Help Your Board Govern More andManage Less, there are several things a club general manager can do. The generalmanager can:• Structure written materials for the board, such as club status reports andboard meeting agendas, to direct the attention of board members to issues ofpolicy and strategy.• Equip board members with the capacity to monitor the club’s performanceand progress.• Create clear expectations for the board. 6Other Tips for Long-Term SuccessThere are no rules club general managers can follow that will guarantee thatthey will keep their jobs or be happy managing their clubs. But there are a fewprinciples veteran general managers cite that might help a club general managerachieve long-term success with a club:• Be yourself when interviewing. The best thing a general manager can do duringthe hiring process is to let the board know exactly who he or she is so thatthere is a better chance that the right match between club manager and clubwill be made.

66 Chapter 2General Manager Performance Evaluation ProcessCrystal Thomas, MCM MonographMost club managers are passionate about their work. So why is it not uncommon tohear of managers who were surprised by terminations as they thought their performancewas meeting or exceeding expectations? Why is there managerial turnover—especially when managers are often excellent communicators—due to poor communicationwith the board and misunderstanding of how their or the club’s performanceis being measured?Crystal Thomas’s Master Club Manager monograph examined the performanceevaluation process to discover relationships between performance evaluations andmanagerial longevity, performance evaluations and club progress, and performanceevaluations and managerial compensation.Placing importance on the performance evaluation and its processes can help movethe private club industry forward. The results of the monograph study indicate thatappropriate use of performance evaluations and a well-defined performance evaluationprocess reap major benefits for all involved. The major rewards include: increasingthe longevity of a club manager’s tenure; creating a positive effect on the clubthrough well-defined, communicated, and measurable goals; and providing a quantifiablemeans by which bonuses, and possibly salary, can be measured, ultimatelyincreasing the compensation of the general manager.Data shows that the average tenure of a club manager is only 2.5 years (ClubManager Review, 2001). Although causes of employee turnover have been studiedin the club industry, we know very little about the causes of managerial turnover inclubs. One can only speculate about the number of moves made to better positions,the number of moves within the area of employment, or the number that represent asignificant geographic move. However, the average tenure indicates that there is notmuch occupational stability for the individual, and some of this instability can easilynegatively affect a manager and his or her family.Knowing the dedication and passion with which most club managers approach theirpositions, there seems to be a disconnect between the desire managers have toperform well and perceptions that they are performing well, and the perceptions of theboard of directors. Ideally, the performance review process should be providing anavenue for communication between managers and boards on managerial performance.Mr. James Singerling, CCM, CEC, and chief executive officer of the Club ManagersAssociation of America, believes the statistics are changing. He says “the perceptionof club managers as COOs and the acceptance by members and boards thatclubs are businesses with myriad issues that need a professional have led to theincrease in tenure of senior management at clubs. The two- to three-year statistic isa holdover from many years ago when GMs were more disposable and had far lesstraining. Today, they are so well-trained and versatile and not nearly as disposableas they once were.” (Bridget Gorman Wendling, personal communication, Sept. 18,2003) Several of the statistics in the CMAA 2003 Compensation and Benefits Surveyreference the average respondent being with their club for almost seven years, andhaving held their current job titles for more than five years. (2003 Compensation andBenefits Survey)

The Board of Directors and the General Manager/Chief Operating Officer 67Manager turnover is not inherently a bad thing, and as cited above, the reasonspeople leave the clubs are numerous, varied, and mostly unknown. Some managersmay be in junior positions and making progressive moves to further their careers.Others may just not be suited to a particular club and move into something else thatbecomes a win-win for them and their club.In this industry, and virtually all industries that work with volunteer boards, there arechallenges inherent to the relationship between managers and their boards. Therapid turnover of board membership and the inconsistency in board members’ understandingof club operations contributes to the problems of establishing stability withinclub operations. One of the responses to these challenges is the use of a formalperformance evaluation process for club managers.A structured performance evaluation process can ease the transition for a managerthrough changes in the board of directors, as it can provide continuity and establishedguidelines in the midst of change. Club managers will always be faced withchallenges that develop from board politics and the need to work with board memberswho possess inconsistent levels of commitment and knowledge of club operations.However, there are various ways to assess how a club manager is doing, themost objective of these being a formal performance evaluation, a method that leavesa permanent record in the manager’s employment file.In Thomas’s study, she found that most clubs had a performance evaluation process.The most common type of performance evaluation cited was the top-down performanceevaluation. However, the respondents that have a 360-degree performanceevaluation reported the highest level of satisfaction with their type of evaluation.Although most general managers (41%) did have some level of input into theirperformance evaluation, there were 6% that had no input whatsoever. Some of therespondents (30%) reported having an ad hoc discussion of their performance astheir review, and 27% of the managers said that they would like a different style ofperformance evaluation.The majority, 94%, of respondents stated they were allowed to provide feedback atthe end of the evaluation process. Most of the managers, 91%, responded they consideredthe performance evaluation system being used as fair. Furthermore, 84% ofthe respondents reported they were satisfied with the performance evaluation systemused. Finally, 85% of the respondents said their performance evaluation is basedupon a combination of subjective and objective criteria.The study also indicated the lack of an adequate performance evaluation is morelikely to lead to managerial turnover. Respondents indicated this managerial turnovermight be a result of managers being released (51% supported this), and becausegeneral managers would likely choose to leave (41% supported this).Half of the respondents agreed that an excellent performance evaluation motivatesa general manager to stay at their club. There is a 56% level of loyalty of managersto their club in terms of managers stating that they would not look for other jobs justfor receiving a poor performance evaluation. The majority of general managers wouldnot leave their position after receiving a poor performance evaluation nor would their(continued)

68 Chapter 2loyalty diminish if they received a poor performance evaluation. In fact, 68% agreethat a poor performance evaluation motivates them to improve in those stated areas.The data also supported the hypothesis that performance evaluation is positivelyrelated with manager’s compensation. Of those who earn less than $100,000, 47%have a performance evaluation process, and 71% do not receive performance evaluations.Of those earning more than $100,000, 53% have a performance evaluationprocess, while only 29% do not.The majority (69%) of the respondents reported that the bonus systems are paidonly if earned, and are not arbitrary in design. The higher paid the general manageris, the higher the bonus percentage. For general managers making $140,0000 andover, 28% of them receive a bonus of 20% to 24%, whereas of those making lessthan $80,000, only 7% receive a bonus of 20 to 24%. Conversely, for those making$140,000 and over, 12% receive a bonus of less than 10% of their base salary comparedto those making less than $80,000, 63% have a bonus of less than 10%.Type of Performance EvaluationFrequency Percent ValidPercentCumulativePercentValid 360-degree 10 6.0 8.0 8.0Top-down 95 56.9 76.0 84.0Peer-to-peer 2 1.2 1.6 85.6Subordinate 1 .6 .8 86.4Self-assessment 3 1.8 2.4 88.8Other 14 8.4 11.2 100.0Total 125 74.9 100.0Missing No answer 42 25.1Total 167 100.0Correlation Between Overall Performance Evaluation and SalaryFrequency Percent ValidPercentCumulativePercentValid Strongly agree 33 19.8 21.7 21.7Agree 72 43.1 47.4 69.1Disagree 36 21.6 23.7 92.8Strongly disagree 11 6.6 7.2 100.0Total 152 91.0 100.0Missing No answer 6 3.6Not applicable 9 5.4Total 15 9.0Total 167 100.0Source: Crystal Thomas, MCM, Master Club Manager Monograph.

The Board of Directors and the General Manager/Chief Operating Officer 69club managers. 8 CMAA offers a variety of educational programs designed for clubmanagers at all career levels, including:• Business Management Institute.• World Conference on Club Management.• Leadership/Legislative Conference.• Chapter Education.Business Management Institute. CMAA’s Business Management Institute(BMI) is a series of intensive university-based one-week courses ranging fromthe first level, designed for the entry-level club manager, through the fourth andfifth level, designed for advance senior-level managers. These competency-basedcourses are offered at major U.S. hospitality schools and are taught by universityfaculty and industry professionals. The five core BMI programs are:• BMI I: The Basic Club Management School• BMI II: The Leadership Edge• BMI III: The Chief Operating Officer Concept• BMI IV: Tactical Leadership• BMI V: Strategic LeadershipElective courses in the BMI program include one-week programs in the followingareas:• BMI International: Traditions, Innovations, and Future Trends• BMI Certification Review Course• BMI Food and Wine Experience• BMI Golf Management• BMI Distance Learning Course—Organizational Behavior: Team Processes inPrivate ClubsWorld Conference on Club Management and Golf Industry Show. Heldin a major U.S. city each year, CMAA’s World Conference on Club Managementserves as the centerpiece of the association’s annual functions. Educationalopportunities abound at this conference, including approximately 100 educationalprograms on club management that range from 90-minute sessions to full-day preandpost-conference workshops. The 90-minute sessions allow club managers toreceive updates on such topics as government regulatory issues and environmentalconcerns. The workshops provide an in-depth look at topics ranging from golfcourse management for club managers to technology and computer applicationsin private clubs. Day-long case studies provide participants with an opportunityto analyze real club problems and come up with creative solutions. In addition,the World Conference hosts the club industry’s largest exposition of products andservices and an Idea Fair of creative club programs.

70 Chapter 2Leadership/Legislative Conference. CMAA’s Leadership/Legislative Conferenceis designed for CMAA chapter leaders, offering extensive information onleadership techniques for use in chapter management as well as information onlegislative issues affecting the club industry.Chapter Education. A variety of educational programs are offered on amonthly or quarterly basis by the more than 50 CMAA chapters located throughoutthe United States and around the world.Assistant Managers’ Conference. An established chapter endeavor is theAssistant Managers’ Conference. Sponsored by a different CMAA chapter eachyear, it consistently receives excellent evaluations and has proven to be an effectiveprogram for assistant managers.Manager in Development (MID). The Manager in Development Program is aunique opportunity to experience the value of organized mentoring. It is a handson,modular-style, workbook/CD series is designed for assistant managers, departmentalsupervisors, or club interns to complete as they conduct regularly assignedclub duties.MID participants learn about all functional areas within a club; prepare themselvesfor career advancement; attain a challenging and measurable benchmarkin club management; confirm studies in a working club operation; and develop arelationship with a club manager as a mentor. This program is a gateway to theclub management profession and provides opportunities for personal and professionalgrowth, a source of fresh ideas and enhancement of practical skills gainedthrough actually working in the club.Other Associations. Educational opportunities for club general managers are alsoavailable from a number of other associations that serve the club and hospitalityindustries. The Educational Institute of the American Hotel & Lodging Associationhas a wide range of textbooks, seminars, and certifications that are of valueto club managers. 9 The Educational Foundation of the National Restaurant Associationoffers educational seminars and workshops dealing with food and beverageoperations. 10 The American Management Association is an excellent sourceof materials on management and offers hundreds of courses and seminars insuch general management categories as purchasing, research and development,human resources, technology, and finance and accounting. 11 The National ClubAssociation represents the mutual business interests of social, recreational, and athleticclubs; it provides a variety of club-related publications and other services. 12Endnotes1. Much of the information in this chapter was adapted from Bridgette M. Redman, TopicalReference Series: White Papers on Club Management, Issues 1–6 (Lansing, Mich.: EducationalInstitute of the American Hotel & Lodging Association, 1997). Copies of thisbook can be obtained by contacting the Club Managers Association of America, 1733King Street, Alexandria, VA 22314; tel. (703) 739-9500.

The Board of Directors and the General Manager/Chief Operating Officer 712. Gerald F. Hurley, The Private Club Leadership Guide (Washington, D.C.: National ClubAssociation, 1991), p. 7.3. Cyril O. Houle, Governing Boards (San Francisco, Calif.: Jossey-Bass Publishers, 1990),p. 72.4. Edward A. Merritt, “Hospitality Management: A Study of Burnout in Private ClubManagement” (master’s thesis, Pepperdine University, Malibu, Calif., 1995), AppendixC, p. 10.5. Ralph F. Lewis, “The Art of Choosing Board Members,” in The Corporate Director: NewRoles, New Responsibilities (Boston, Mass.: Cahners Books, 1975).6. Richard P. Chait, How to Help Your Board Govern More and Manage Less (Washington,D.C.: National Center for Nonprofit Boards, 1993).7. George P. Carroll, “Here Today, Here Tomorrow: Improving a Manager’s StayingPower,” Club Management, June 1990.8. For more information about the Club Managers Association of America’s programs forclub managers, call (703) 739-9500; or write CMAA, 1733 King Street, Alexandria, VA22314; or fax (703) 739-0124; or contact CMAA via the Internet at www.cmaa.org; ore-mail them at cmaa@cmaa.org.9. Information on services and products provided by the Educational Institute of theAmerican Hotel & Lodging Association can be obtained by calling (800) 752-4567; orwriting the Educational Institute, 2113 North High Street, Lansing, MI 48906; or usingEI’s Internet address: www.ei-ahla.org.10. Information on courses as well as other professional services offered by the EducationalFoundation of the National Restaurant Association can be obtained by calling(800) 765-2122; or writing the Educational Foundation, 250 S. Wacker Dr., No.1400, Chicago, IL 60606; or using EF’s Internet address: www.restaurant.org/educate/educate.htm.11. A complete description of the American Management Association’s courses can beobtained by writing the association at 1601 Broadway, New York, NY 10019-7420; orcalling (800) 225-3215; or e-mailing at cust_serv@amanet.org.12. Information on National Club Association seminars and educational programs can beobtained by calling (800) 625-6221; or writing NCA at 1120 20th Street NW, Suite 725,Washington, DC 20036; or faxing (202) 822-9808; or e-mailing at ncaclubdir@aol.com.Key Termsarticles of incorporation—The document that establishes a club’s legal existence.Also called a constitution.board of directors—An equity club’s governing body, made up of club memberselected by club members.bylaws—Rules adopted by a club to govern the club.general manager—A club’s chief operating officer, in charge of all club staff membersand operations; he or she reports to the club’s board of directors and carriesout club policies set by the board.

72 Chapter 2meeting agenda—A tool used to help make meetings more effective; it lists all topicsto be covered in a meeting.minutes—A document recording what takes place at a board or committee meeting.Review Questions1. What are some problems that might occur if a club’s board of directors is toobig? too small?2. What are some of the advantages a club enjoys by having long terms of servicefor board members?3. Why is it a good idea to give new board members an orientation to their newroles as board members?4. What are some topics typically covered by a club’s bylaws?5. Why is it important for a board meeting to have a written agenda?6. What are some ways a new general manager can get started on the right footwith his or her club?7. How can a club general manager discreetly encourage his or her board togovern the club, not try to manage it?8. What are some of the professional development opportunities available toclub general managers?Additional ReadingCarroll, George P. “Here Today, Here Tomorrow: Improving a Manager’s StayingPower.” Club Management, June 1990.Chait, Richard P. How to Help Your Board Govern More and Manage Less. Washington,D.C.: National Center for Nonprofit Boards, 1993.Henderson, Edward. “Lions Among Us,” in Master Club Manager Monographs,Volume1, Numbers 1–6. Alexandria, Virginia: Club Managers Association ofAmerica, 1995.Houle, Cyril O. Governing Boards. San Francisco, Calif.: Jossey-Bass Publishers,1990.Hurley, Gerald F. The Private Club Leadership Guide. Washington, D.C.: NationalClub Association, 1991.Lewis, Ralph F. “The Art of Choosing Board Members,” in The Corporate Director:New Roles, New Responsibilities. Boston, Mass.: Cahners Books, 1975.Merritt, Edward A. “Hospitality Management: A Study of Burnout in Private ClubManagement.” Master’s thesis, Pepperdine University, Malibu, Calif., 1995.

Internet SitesThe Board of Directors and the General Manager/Chief Operating Officer 73For more information, visit the following Internet sites. Remember that Internetaddresses can change without notice. If the site is no longer there, you can use asearch engine to look for additional sites.American Management Associationwww.amanet.orgClub Managers Association of Americawww.cmaa.orgEducational Foundation of theNational Restaurant Associationwww.restaurant.org/educate/educate.htmEducational Institute of the AmericanHotel & Lodging Associationwww.ei-ahla.orgVirtual Clubhouse Home Pagewww.club-mgmt.comCase StudiesCase Study 1Chris Miller is the new general manager of the Mountainview Country Club, a1,000-member club just ten years old. The club’s board fired the previous generalmanager because it was unhappy with the way the club was run. When Chrisinterviewed for the job, several board members mentioned that club operationsseemed “chaotic” and that the club was bogged down with one problem afteranother. They wanted Chris to “turn things around.” Despite some misgivings(Chris knew that he would be the club’s fourth general manager in ten years),Chris took the position because he felt the club’s potential was worth the risk.It didn’t take Chris long to realize that one of the biggest problems with theclub was the board itself. At Chris’s first monthly board meeting, he had beensurprised at how Ted Fisher, the board’s president, ran things. First, there wasa generic agenda that consisted of an extremely simple outline: “Call meetingto order; Read previous minutes; Finance committee reports; House committeereports; Greens committee reports”; and so on. There were three new boardmembers at the meeting, but they were not formally welcomed and they obviouslyhad not been given any orientation because they looked lost throughoutthe meeting. The meeting itself wandered from subject to subject and took threehours to accomplish almost nothing. It was obvious that many of the committeechairs had nothing to report, but felt obligated to say something anyway. Afterthe meeting, Chris had asked President Fisher about the generic agenda. “Wealways go in the same order,” Fisher said, “so that’s all we really need.” Whatabout the new board members—had they been given any orientation? “We’venever bothered with that,” Fisher replied. “What is there to learn, really? They’vebeen members for years.”After that first board meeting, Chris had asked his assistant manager, Linda, forsome background information about the board and how it operated. Unfortunately,

74 Chapter 2his worst suspicions were confirmed. Some of the board members are retired,Linda said, and have a lot of time on their hands, so they want to micro- manageeverything. On the other hand, many of the board members are very busyexecutives and they present an opposite problem: they are so pressed for time theyhardly give the matters that come before the board any attention. Julia, the club’sonly female board member, had promised her friends that if she was elected to theboard she would do something about the men-only Saturday-morning tee times.Her proposal to open the Saturday-morning tee times to women was defeatedearly in her term and she’d had a poor attitude ever since; she took scant interestin other club business and appeared to be just going through the motions until herterm ended. Other board members, too, tended to focus on their pet projects to theexclusion of everything else.Chris also learned that board members had a history of abusing their power inmatters both large and small—not because they were deliberately trying to disruptthe club, but because they didn’t know any better. Many board members habituallygave direct orders to club employees, for example. This bad habit had gottenstarted after the first general manager left the club and the club struggled withoutone for six months. Apparently the members didn’t realize the havoc they causedwhen they contradicted a club manager’s directives, or asked valets on duty totake them to the airport, or told a banquet server to drop what he was doing anddrive by their house to pick up the wedding gift they forgot.Some board members asked to be seated in the main dining room duringbusy periods without making reservations. Last year the club’s dining room managerquit because she received a tongue-lashing and then a very harsh letter ofreprimand from a board member. Her crime? She had refused to seat his partybecause some of his guests were wearing blue jeans and the club has a firm policyagainst blue jeans in the main dining room.One of the board members tends to drink a little too much, Linda went on, andsometimes discusses with club bartenders things like the previous general manager’sbonus plan and why the club fired its last golf pro. Around Christmas time anoutbreak of food poisoning had occurred at the club, and a board member thoughtit would be helpful if he went to the media and explained the situation. Without theboard’s or anyone else’s knowledge, he went to the local newspaper and told sucha confused and contradictory tale that the newspaper launched a full-blown investigationand turned an unfortunate but minor incident into a front-page story. Andlast but not least, the board’s vice president had almost gotten the club involved ina lawsuit because he repeatedly made inappropriate advances toward one of theclub’s female servers. Because this was another period when the club was betweengeneral managers, the server went directly to the board with her complaints, butthe board ignored the problem. Soon afterwards the server graduated from collegeand landed another job, and it looked like she would not be pressing charges, butone never knew if the problem would reoccur more seriously.All in all, it was a picture of an undisciplined board that was doing more harmthan good to the club. Chris knew that if he was going to make positive changesat the club, he would have to start with the board, and he had his work cut out for

The Board of Directors and the General Manager/Chief Operating Officer 75him. Chris also knew from working at other clubs that timing was a critical factor.Since he had just been hired, he had the board’s attention and a brief window ofopportunity in which to address the issues that needed immediate action.Discussion Questions1. What challenges does Chris face with the club’s board?2. Which of these challenges should Chris address immediately (Priority A challenges),and which are not so critical and can be addressed over time (PriorityB challenges)?3. How should Chris address the immediate, Priority A challenges?4. What can Chris do immediately to encourage the board president to run moreeffective meetings?5. How can Chris help the board president see the need for an orientation programfor new board members?6. What elements should a new-board-member orientation program contain?The following industry experts helped generate and develop this case: Cathy Gustafson,CCM, University of South Carolina, Columbia, South Carolina; Kurt D.Kuebler, CCM, Vice President, General Manager, The Desert Highlands Association;Scottdale, Arizona; and William A. Schulz, MCM, General Manager, HoustonCountry Club, Houston, Texas.Case Study 2Tom Frost has recently become the general manager of the Leisure Resort Club, aprivate, residential, golf course community at which the average age of membersis 65. Most of its members are retirees. Many members used to be CEOs or in theupper management of large corporations. They previously led very hectic lifestylesand are now learning to unwind.Tom used to be the general manager of the Vertigo Club, a large downtownclub. The average age of members there was 45—many members were hardworkingprofessionals. Board meetings for the club were typically held for no morethan an hour over breakfast one day a month. The president of the Vertigo Clubwas known for his efficient meeting-time management with the board; he wouldmail out agendas in advance that included timeframes for each item, and he knewhow to diplomatically keep discussions on schedule.In the course of his orientation, Tom learned from the Leisure Resort Clubpresident that monthly board meetings typically start at 3:00 P.M. and vary inlength. Sometimes they finish by the dinner hour, sometimes they do not. Tom hasmet with each of the board members and he has been impressed with the warmthand cooperative attitudes they exhibit. His understanding from the president is

76 Chapter 2that he is to conduct a review of club operations, so he reviews human resourcesrecords and gathers reports from the accounting division, the food and beverageoutlets, the golf and greens operations—all the branches of the club’s operation.He puts tremendous effort into reading minutes from previous board meetings,internalizing the club’s goals and organizational structure, and reviewing, analyzing,and reformatting reports. His goal is to give a “State of the Club” address atthe upcoming board meeting, which will be his first, and receive feedback on hisobservations from board members.The day arrives for Tom’s first board meeting. He learns at 10:00 A.M. that thereis a schedule conflict for the boardroom, so he has the board meeting moved to theSmith Room, a private room off the main dining room. Tom has his staff spread theword to the board members while he calls to inform the club president. When Tomasks whether the board members will be badly distracted by the unusual setting ofthe meeting, the president tells him not to worry about it. Tom arrives at the SmithRoom at 2:30 P.M. and arranges his presentation materials. Tom hands the presidenta copy of the meeting agenda, complete with time frames for each agenda item.The president comments, “Wow, we’ve never had anything this detailed before.This should really help us stay focused.” Tom places copies of the agenda and ofhis report summaries at each place around the table. At 3:00, as members start toarrive and look at the materials before them, Tom hears many comments abouthow organized his handouts are and how helpful they are sure to be.The president opens the meeting with a welcome to Tom. The board membersoffer a hearty round of applause, and Tom beams, thinking to himself, “This bunchof people makes it worth all the effort I put in last week.” The president continueswith his own report: “One of the most pressing issues we are facing here, Tom, isthe renovation of the main clubhouse. All of you know how it has been a mixedblessing for us in the past months. I feel that it is important that Tom know thedepth of this board’s struggles and feelings over our extensive but necessary renovationenterprise. Wouldn’t you say so, Bill?”Bill jumps in. “You’re right, Reynold. Why just the other day a member cameto me and said she had seen what she feared was asbestos hanging down from asection of ceiling...” As they talk, two servers come in, looking for a contact lens amember might have lost in that room earlier.Three hours later …Tom has been taking notes from time to time, but has been getting more and moreanxious. The board has discussed the renovations, slow play on the golf course,the renovations, their most recent golf games, the renovations, cigar smoking, therenovations, soft spikes, and the renovations. Two board members spent part ofthe time on their hands and knees, helping the servers look for the contact lens.The president is just summing up the discussion on the renovations when a diningroom employee enters and whispers in Tom’s ear. As the president takes his seat,

The Board of Directors and the General Manager/Chief Operating Officer 77Tom says, “I’m terribly sorry, everyone, but there’s another group scheduled tomeet here in fifteen minutes, so we need to wrap things up.”Tom eagerly begins to cover agenda item 3 of 11, the general manager’s report.He quickly outlines the results of his analysis. A board member interrupts andsays her copy of a particular page is too light to read. Two other members starttalking about how shameful it is that they are the most important decision-makingbody in the organization and they can’t even have a meeting room for an adequateperiod of time. The president steps in and says, “I think Tom has done an excellentjob at taking the pulse of our club, and I encourage all of you to take these reportsummaries home and read them. It’s just about time to go. Tom, do you have anymore comments to share?”Tom says, “I thank you in advance for the effort you will put into readingthese materials.”Floyd, a committee chair whose report is always last on the agenda, asks thepresident for a chance to speak. The president gives him the floor, and Floyd begins:“Tom has obviously put a lot of work into these summaries. He will need to hearour feedback and to begin to know what actions to take on his conclusions. If weleave him to muddle through the next month, we’ll have only ourselves to blameif he takes actions we don’t like. Let’s all be timely in reading these reports andgiving Tom our feedback.” The president agrees and hears a motion to adjourn themeeting. After a quick vote, the board members file out. Bill finds the contact lenson his seat cushion, and the board members nearby hail him as a hero.By the time Tom has gathered his belongings and vacated the conferenceroom, the next group is almost ready to start their meeting. On the way out, Tomsees a copy of his report on the bar counter. He grabs it and hopes the bartenderhasn’t read anything, especially the section about poor liquor control on the partof the bar staff.“What a disaster,” Tom thinks to himself as he shuffles back to his office. Hefeels too exhausted to think, but he makes himself call the general manager of theSchenkles Club, a sister club to the Vertigo Club. The manager listens carefully tohis story and then offers to give Tom some suggestions.Discussion Questions1. What more does Tom need to know to conduct an effective board meeting?What skills does he need to exercise and develop if future board meetings areto be effective?2. In terms of the setting, interaction with board members, and the agenda, whatwent wrong at Tom’s first board meeting?3. In terms of the setting, interaction with board members, and the agenda, whatshould the Schenkles Club general manager suggest that Tom do differentlyat the next board meeting?The following industry experts helped generate and develop this case: CathyGustafson, CCM, University of South Carolina, Columbia, South Carolina; Kurt D.

78 Chapter 2Kuebler, CCM, Vice President, General Manager, The Desert Highlands Association;Scottdale, Arizona; and William A. Schulz, MCM, General Manager, HoustonCountry Club, Houston, Texas.