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Proper On-Boarding for New Club Directors: Implementing an Orientation Program

Being a club member and being a member of a club’s board of directors are two entirely different things. When bringing a new member onto the board, a club can benefit from strong introductory and orientation programs to make the adjustment easier and to aid the on-boarding process. Two elements that contribute to the success of a strong on-boarding program are effective director orientation and an annual board retreat.

A strong director orientation program creates a lasting foundation for club service. In addition to serving as a formal welcome for new directors, orientations develop teamwork, build trust between directors and staff, teach directors how to deal with conflicts within the club, and gently remind returning directors of some of the more salient points. The objectives of board orientation often include the following:

  • To familiarize new directors with their duties and the extent of their authority
  • To educate new directors about the distinction between outside businesses and club operations
  • To remind directors of the care and loyalty due to club members when executing their duties
  • To review prior years policies and ensure continuity from year to year

While orientation is partially a teambuilding exercise, a portion of the programming should include separate sessions devoted exclusively to new directors and highlighting the significance of joining the club’s board. In addition, orientation for newly installed board members should include a virtual component conducted during actual board meetings.

Duties and Roles of New Directors

Sometimes, directors, especially those with managerial careers, find it difficult to resist involvement in the details of club operations. While new ideas can be helpful, the staff may perceive threats to their jobs if directors become overly intrusive or they may find the director’s involvement sends mixed or confusing signals. If an unhappy work environment develops, the entire club can suffer. Accordingly, the club president should help board members understand a fundamental axiom of club leadership: the board should set policy and direction, while management should control the daily operations of the club.

Background and File Reviews

Following their election, new directors may have homework in the form of reading materials orienting them to the club’s operations. Background materials new directors should review include:

  • The club’s history and bylaws
  • Policies and rules governing ethics and conflicts of interest
  • Policies and rules governing the admission of members
  • Board minutes from the previous two years
  • Reports from the most recent membership survey(s)
  • The club’s long-range plan
  • The club’s audit procedures and most recent audit report
  • Annual reports from the last three years
  • The most recent financial statements
  • A board member’s position description
  • Committee reports for committees with which the new director will have involvement
  • Information on club industry trends and other club industry related publications

Briefing Visits

At many clubs, the president conducts the board orientation briefing prior to the first board meeting. Briefings usually cover the proper role of a director and the obligations of properly discharging one’s duties.

Club leaders should also inform new board members about any pending lawsuits or claims involving the club or its officers. If the club suffered a lawsuit in the past, the club might also outline the circumstances of the case along with ways to avoid future litigation.

The general manager, audit committee chairperson, or both should briefly discuss the ways in which the club accounts for its operations. They should also review the club’s statements of financial position, statements of activities, statements of cash flow, chart of accounts, sinking fund requirements, controlling policies, and fees and pricing. The content of the briefing should acquaint new directors with the status of significant projects either underway or about to begin.

Because employment practices liability continues to be a primary source of legal claims against clubs, the briefing should cover the subject, especially the topics of wrongful discharge and harassment.

Facilities Tour

New director on-boarding activities should include exposure to areas not usually seen by club members. As club members, new directors are already familiar with a large part of the club’s property. They may use the dining room and the pool and perhaps are regulars on the golf course or tennis court. However, as directors, they should tour all the club’s operational facilities to cultivate detailed knowledge of the club’s physical operations. The general manager is probably the best person to lead this part of the orientation and conduct the walking tour.

In this format, a director can receive useful information concerning numbers of employees, the scope of departmental budgets, anticipated maintenance cycles, outlines of ongoing improvement planning, etc. The tour should also highlight problem areas, such as property erosion, poor drainage, structural weaknesses, and sanitary problems. The tour leaders should introduce the new directors to club staff from housekeepers and waiters to the golf pro and chef. The general manager should describe the daily operation of the club, and the directors should ask questions.

Further information about director on-boarding practices and board retreats can be found in NCA’s publication, Club Governance Guidelines: A Path to Organizational Excellence.

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