74 Chapter 2his worst suspicions were confirmed. Some <strong>of</strong> <strong>the</strong> board members are retired,Linda said, <strong>and</strong> have a lot <strong>of</strong> time on <strong>the</strong>ir h<strong>and</strong>s, so <strong>the</strong>y want to micro- manageeverything. On <strong>the</strong> o<strong>the</strong>r h<strong>and</strong>, many <strong>of</strong> <strong>the</strong> board members are very busyexecutives <strong>and</strong> <strong>the</strong>y present an opposite problem: <strong>the</strong>y are so pressed for time <strong>the</strong>yhardly give <strong>the</strong> matters that come before <strong>the</strong> board any attention. Julia, <strong>the</strong> club’sonly female board member, had promised her friends that if she was elected to <strong>the</strong>board she would do something about <strong>the</strong> men-only Saturday-morning tee times.Her proposal to open <strong>the</strong> Saturday-morning tee times to women was defeatedearly in her term <strong>and</strong> she’d had a poor attitude ever since; she took scant interestin o<strong>the</strong>r club business <strong>and</strong> appeared to be just going through <strong>the</strong> motions until herterm ended. O<strong>the</strong>r board members, too, tended to focus on <strong>the</strong>ir pet projects to <strong>the</strong>exclusion <strong>of</strong> everything else.Chris also learned that board members had a history <strong>of</strong> abusing <strong>the</strong>ir power inmatters both large <strong>and</strong> small—not because <strong>the</strong>y were deliberately trying to disrupt<strong>the</strong> club, but because <strong>the</strong>y didn’t know any better. Many board members habituallygave direct orders to club employees, for example. This bad habit had gottenstarted after <strong>the</strong> first general manager left <strong>the</strong> club <strong>and</strong> <strong>the</strong> club struggled withoutone for six months. Apparently <strong>the</strong> members didn’t realize <strong>the</strong> havoc <strong>the</strong>y causedwhen <strong>the</strong>y contradicted a club manager’s directives, or asked valets on duty totake <strong>the</strong>m to <strong>the</strong> airport, or told a banquet server to drop what he was doing <strong>and</strong>drive by <strong>the</strong>ir house to pick up <strong>the</strong> wedding gift <strong>the</strong>y forgot.Some board members asked to be seated in <strong>the</strong> main dining room duringbusy periods without making reservations. Last year <strong>the</strong> club’s dining room managerquit because she received a tongue-lashing <strong>and</strong> <strong>the</strong>n a very harsh letter <strong>of</strong>reprim<strong>and</strong> from a board member. Her crime? She had refused to seat his partybecause some <strong>of</strong> his guests were wearing blue jeans <strong>and</strong> <strong>the</strong> club has a firm policyagainst blue jeans in <strong>the</strong> main dining room.One <strong>of</strong> <strong>the</strong> board members tends to drink a little too much, Linda went on, <strong>and</strong>sometimes discusses with club bartenders things like <strong>the</strong> previous general manager’sbonus plan <strong>and</strong> why <strong>the</strong> club fired its last golf pro. Around Christmas time anoutbreak <strong>of</strong> food poisoning had occurred at <strong>the</strong> club, <strong>and</strong> a board member thoughtit would be helpful if he went to <strong>the</strong> media <strong>and</strong> explained <strong>the</strong> situation. Without <strong>the</strong>board’s or anyone else’s knowledge, he went to <strong>the</strong> local newspaper <strong>and</strong> told sucha confused <strong>and</strong> contradictory tale that <strong>the</strong> newspaper launched a full-blown investigation<strong>and</strong> turned an unfortunate but minor incident into a front-page story. Andlast but not least, <strong>the</strong> board’s vice president had almost gotten <strong>the</strong> club involved ina lawsuit because he repeatedly made inappropriate advances toward one <strong>of</strong> <strong>the</strong>club’s female servers. Because this was ano<strong>the</strong>r period when <strong>the</strong> club was betweengeneral managers, <strong>the</strong> server went directly to <strong>the</strong> board with her complaints, but<strong>the</strong> board ignored <strong>the</strong> problem. Soon afterwards <strong>the</strong> server graduated from college<strong>and</strong> l<strong>and</strong>ed ano<strong>the</strong>r job, <strong>and</strong> it looked like she would not be pressing charges, butone never knew if <strong>the</strong> problem would reoccur more seriously.All in all, it was a picture <strong>of</strong> an undisciplined board that was doing more harmthan good to <strong>the</strong> club. Chris knew that if he was going to make positive changesat <strong>the</strong> club, he would have to start with <strong>the</strong> board, <strong>and</strong> he had his work cut out for
<strong>The</strong> <strong>Board</strong> <strong>of</strong> <strong>Directors</strong> <strong>and</strong> <strong>the</strong> <strong>General</strong> <strong>Manager</strong>/<strong>Chief</strong> <strong>Operating</strong> Officer 75him. Chris also knew from working at o<strong>the</strong>r clubs that timing was a critical factor.Since he had just been hired, he had <strong>the</strong> board’s attention <strong>and</strong> a brief window <strong>of</strong>opportunity in which to address <strong>the</strong> issues that needed immediate action.Discussion Questions1. What challenges does Chris face with <strong>the</strong> club’s board?2. Which <strong>of</strong> <strong>the</strong>se challenges should Chris address immediately (Priority A challenges),<strong>and</strong> which are not so critical <strong>and</strong> can be addressed over time (PriorityB challenges)?3. How should Chris address <strong>the</strong> immediate, Priority A challenges?4. What can Chris do immediately to encourage <strong>the</strong> board president to run moreeffective meetings?5. How can Chris help <strong>the</strong> board president see <strong>the</strong> need for an orientation programfor new board members?6. What elements should a new-board-member orientation program contain?<strong>The</strong> following industry experts helped generate <strong>and</strong> develop this case: Cathy Gustafson,CCM, University <strong>of</strong> South Carolina, Columbia, South Carolina; Kurt D.Kuebler, CCM, Vice President, <strong>General</strong> <strong>Manager</strong>, <strong>The</strong> Desert Highl<strong>and</strong>s Association;Scottdale, Arizona; <strong>and</strong> William A. Schulz, MCM, <strong>General</strong> <strong>Manager</strong>, HoustonCountry Club, Houston, Texas.Case Study 2Tom Frost has recently become <strong>the</strong> general manager <strong>of</strong> <strong>the</strong> Leisure Resort Club, aprivate, residential, golf course community at which <strong>the</strong> average age <strong>of</strong> membersis 65. Most <strong>of</strong> its members are retirees. Many members used to be CEOs or in <strong>the</strong>upper management <strong>of</strong> large corporations. <strong>The</strong>y previously led very hectic lifestyles<strong>and</strong> are now learning to unwind.Tom used to be <strong>the</strong> general manager <strong>of</strong> <strong>the</strong> Vertigo Club, a large downtownclub. <strong>The</strong> average age <strong>of</strong> members <strong>the</strong>re was 45—many members were hardworkingpr<strong>of</strong>essionals. <strong>Board</strong> meetings for <strong>the</strong> club were typically held for no morethan an hour over breakfast one day a month. <strong>The</strong> president <strong>of</strong> <strong>the</strong> Vertigo Clubwas known for his efficient meeting-time management with <strong>the</strong> board; he wouldmail out agendas in advance that included timeframes for each item, <strong>and</strong> he knewhow to diplomatically keep discussions on schedule.In <strong>the</strong> course <strong>of</strong> his orientation, Tom learned from <strong>the</strong> Leisure Resort Clubpresident that monthly board meetings typically start at 3:00 P.M. <strong>and</strong> vary inlength. Sometimes <strong>the</strong>y finish by <strong>the</strong> dinner hour, sometimes <strong>the</strong>y do not. Tom hasmet with each <strong>of</strong> <strong>the</strong> board members <strong>and</strong> he has been impressed with <strong>the</strong> warmth<strong>and</strong> cooperative attitudes <strong>the</strong>y exhibit. His underst<strong>and</strong>ing from <strong>the</strong> president is