The relationship between a club’s general manager and board members is one of the most critical partnerships to the club’s success. The general manager is charged with the day-to-day conduct of the club’s operations and supervises and directs all activities and affairs.
The board is the club’s central decision-making body. Its authority derives from the membership, the club’s highest level of authority. The board sets club policies and procedures, regulates fees and charges, admits members and defines and protects the club’s short-and long-term interests, as noted in NCA’s Board Toolkit: Club Leadership Essentials. But the board, aside from carrying out these duties, selects, oversees and monitors the general manager’s performance, making the GM accountable to the board. This creates an important partnership that must be handled with care.
To understand the complexities of this relationship and how to nurture it to ensure positive results, we interviewed several industry experts on the nature and best practices of this alliance
Maintaining Credibility
Communication and credibility are that glue that holds relationships together, especially in a club environment where the general manager must balance volunteers’ and members’ expectations and responsibilities. It is paramount in creating common ground, working through difficult times and executing plans. And only when the board and GM are in synch with the club’s vision will it turn into reality
“Credibility is the amount of goodwill and confidence built up over time by a GM’s leadership and manifests in the board’s support of the GM,” says Kirk O. Reese, NCA’s Chairman and past GM/COO of the Los Angeles Country Club and past GM of Chevy Chase Club in Maryland.
“It is, to borrow from Jim Kouzes’ and Barry Posner’s award-winning book, The Leadership Challenge, a result of an honest, competent, forward-thinking and inspiring leader. It is what you put on display everyday for everyone at all levels to see. It cannot be fabricated and at its heart is purely based on your actions and behaviors,” Say Reese. “When earned, a GM will be given the deference to lead the board.”
Credibility is one of the most critical aspects to healthy board-GM relations.
Board Structure and Orientation
A well-defined board structure is another key element to a successful board-GM relationship. This includes having an effective nominating and election process, a thorough orientation for new board members and a well-planned board agenda. By establishing good governance practices, boards and general managers can avoid some of the biggest impediments to a healthy board-general manager relationship.
David Chag, general manager at The Country Club in Brookline, Mass. and Joe Bendy Jr., COO and general manager at River Oaks Country Club in Houston, emphasize a stable board structure. Notes Chag, “for success, it helps to have the right governance model in place, a nominating process that selects the right people, and good management in place.” At his club, the Nominating Committee selects board candidates, giving the committee an opportunity to properly vet the candidates and discuss the nominees’ positions in governance. The Country Club also does not have contested elections, which helps eliminate last-minute movements to elect anyone who was not vetted and nominated by the committee.
Once the new board members are elected, the next governance process is onboarding. Clubs should have an extensive board orientation for new members to review items important to their success as a director, the club’s financial data, committees, and board and membership process. Reese compares orientation to teaching a new board member how to read his or her “report card.” This helps the general manager define what performance standards are acceptable.
“Orientation should include the conduct expected and responsibilities of board members, current events before the board, strategic responsibilities of the board, current information on the club’s membership, statistics and metrics of the various operations,” Reese adds. It is also an opportunity to share the previous board’s information, including minutes, committee reporting structures and financial statements.
Onboarding is an evolving process, too, and should receive constant scrutiny and attention as internal and external influences change. “This orientation should include key club issues as well as major industry issues and external influences … Materials from industry supporters like NCA should be distributed to help keep our board focused on the big picture,” says Bendy
River Oaks’ board also uses an “activities/decision chart,” which helps define the board’s role versus management’s in a number of areas such as development of short-and long-term goals, capital projects, fees, hiring and evaluating staff and day-to-day operations. This gives new board members a firm foundation for carrying out his or her duties.
Further, both Chag and Bendy agree that board stability and limited turnover can be a great asset. Bendy points out that with frequent turnover, directors may not be fully acclimated to the position until his or her term is coming to an end. To limit this problem, River Oaks’ board relies on its comprehensive orientation and also makes use of an effective board agenda that focuses on board-level issues and not operational ones that the general manager can address.
“We also host regular meeting of past presidents, which are helpful in providing the new president guidance on a global level combining institutional memory and the “whys” behind what has been done in the past,” says Bendy. “Having the immediate past president engaged on the board is helpful for our club.”
Board members at The Country Club may serve two three- year terms as opposed to just one. Says Chag, “Less turnover helps in developing key relationships with the governors and committee chairs.”
Have a Strong Mission
The other key to preventing and solving many board-general manager problems is having meaningful mission and vision statements. Strong and viable mission and vision statements help keep leadership on track and avoid numerous problems, such as personal agendas or an inactive board.
Daniel Farrell, senior associate at GSI Executive Search says, “Executing the vision is the overarching goal that discourages self-destructive behavior and reinforces the trust of working together.”
By having a thoughtful and a mutually agreed upon plan, it is much easier for boards and general managers to steer clear of common headaches and stay focused on what is best for the club’s future.
Headache #1: Capital Projects
Capital projects can strain or strengthen a club and its board-GM relationship. They require detailed and proactive planning, making it imperative to have a well-thought-out mission and agenda.
The Country Club has developed a long-range plan through 2025. This has led to the creation of a master plan that helps leadership prioritize capital issues and which projects to work on—even in specific order. “This system provides a review, not an exact road-map for club projects,” adds Chag.
Short-and mid-term agendas work as well. “Simply developing a short-term (five-year) strategic capital plan is a great place to start as it provides a clear picture of what is needed to keep the club operating,” comments Bendy. “This may lead to a more detailed review of long-range cash flow projections and a review of the club’s financial position and ability to undertake needed capital improvements.”
Capital project plans should take into account current resources and realistic expectations. And like any other major club decision, they must be based around fact. Says Reese, “Examine estimated impacts on present and future usage and the potential for these projects to impact the club’s ability to attract new members. Develop an accounting for needs i.e., necessary repairs and replacement of capital assets versus wants, and show the return on investment—in revenues or usage and its payback periods,” adds Reese.
Reese notes that strong plans are useful, particularly when budgets are tight. They give the general manager and leadership credibility, particularly when their vision is not fully supported by the board. Using this trust, GMs can help the board better understand the necessity to invest in the club, positioning the club favorably for the future regardless of economic conditions.
Headache #2: Personal Agendas
Board members and general managers alike want to do what’s best for the club, but that is not always how actions play out. Often, biases or personal agendas can creep into important club discussions and derail them. “The goal is to walk out with a unanimous decision,” says Chag, “and with the right approach, the board can come to a consensus.”
And at the end of the day, Farrell notes that boards and general managers must remember who their customer is—the member.
The best way to keep personal agendas to a minimum is focusing on the club’s needs first. “The key is to bring a spirit of cooperation between the board and the GM by all agreeing on the best courses for the club’s well-being,” says Reese.
General managers and board members must stay focused on the facts while still allowing room for discussion, but this is often easier said than done. Farrell adds that boards and GMs must be self-policing. They must have the strength to push club culture and promote accountability to the board and manager and discourage inappropriate behavior.
“Placing the club’s well-being above all requires a deft touch to engender the review of ideas without disenfranchising the individual who advocates for them,” Reese continues.
Therefore it is important to be proactive. Distribute key information as soon as possible along with the agenda, notes Bendy. “We post our committee minutes to a board-specific website to be read in advance and utilize a consent agenda for normal/standard issues.”
Bendy promotes a strong discussion process. “Most policy changes come through the committee process after a thorough discussion at that level and with the support of the committee,” he adds. Some clubs will bring in an outside consultant to attend board meetings or retreats, helping to separate fact from biases or unsupported analysis.
Clubs that effectively utilize the resources at hand can mitigate personal agendas. Chag proposes meeting with the Executive Committee to discuss hot-button topics and items that may become board-level issues. “Get to these issues before they come to the boardroom,” adds Chag, “and frame positive discussion, even if it takes multiple meetings to hash out details.”
To help, he offers three guidelines: (1) Pay attention to the agenda, (2) Have officer-level involvement, and (3) Anticipate issues. The club’s mission should be validated when going through these processes, reaffirming its execution and purpose to help separate personal issues from what’s right for the club.
Fighting Through Gridlock
Despite best efforts and a fact-based approach, boards and general managers are still susceptible to gridlock or inactivity. Once again, clubs must have a clear mission statement and structure, and a proactive attitude to get through this obstacle.
Anticipate when these situations can occur. Have a coordinated, respectful and thoughtful approach, says Chag, and be willing to work behind the scenes prior to the meeting. Bendy agrees, “Doing your homework outside the boardroom and in advance of any meeting is critical. Simply listing the pros and cons of a situation is a good start.” Further he adds that clubs should weigh the issue creating gridlock against the club’s mission or strategic priorities to simplify the matter.
When confronted with a divided board, general managers must also fight their first instinct: rallying those who share his or her point of view. Says Reese, “This may be the right thing to do, but it’s not the smart thing to do. A GM who seeks to build consensus between the differing factions will be rewarded for the effort.” Instead of pushing through discussion, remain patient and understanding.
Also, develop and give action items via written management reports that clearly illustrate the need for action, recommends Bendy. During the course of board meetings, ask key department managers to report what they are working on and their objectives for the year.
“As the board’s education and awareness on what it takes to operate the club improves, so should their vision and desire to take action,” adds Bendy.
If gridlock and inactivity still persist, the GM may need to postpone the decision, offers Chag. This allows the GM to form a plan to get directors on board. “The role of the GM is to serve as a conduit to get an idea communicated to the right committee and assist with board buy-in early on. In order to sell an idea, you need to organize, and field committee and board buy-in early on.”
Farrell points out board members, too, have the obligation to remind the manager of big picture items.
Creating Common Ground
The role of the general manager is to serve as a conduit to communicate ideas to the right committee and to assist with board buy-in early on. General managers must be able to define the differences between needs and wants. They must support the ideas in the best way possible for the club while working hand-in-hand with committees. When appropriate, GMs should survey membership to earn support for projects, says Bendy. And as always, the plan or project must align with the club’s objectives and mission.
To achieve this, a general manager must lead, but also be understanding and able to listen and ask questions. “The earnest listener is the one who will find the common ground between divided groups,” comments Reese. Those who oppose an idea will respect and appreciate the concern and effort shown by an understanding leader. “Managers should keep the focus of discussion on agreeable points and work from there to mend fractious issues.”
Working Through Adversity
No matter how well clubs prepare, they are still susceptible to missteps and crises. Therefore it is critical for clubs to understand the best systems and practices to overcome these situations.
Be upfront with what is going on to the board and all club stakeholders. Says Reese, “Communicate the facts to the entire board in person. Be clinical in your objectivity with the board. Admit mistakes and provide solutions to solve issues.
“Allow the board to give their counsel, and as a group decide on the message to broadcast and select a single spokesperson who will communicate it, whether from inside the club or a PR firm/media consultant from outside,” advises Reese.
Similarly, Bendy recommends the board and management take the high road. “Stick to the facts, be clear in what is communicated and develop whatever collateral materials are needed to address this issues. Emotion needs to remain out of the conversation.”
If a club’s membership bucks an issue or the board is indecisive, it’s a good idea to take the issue out of the meeting, says Chag. “Postpone a decision and get a plan together and strategize on how to get everyone on board. You need to do coalition building, avoid personal agendas, and focus on what’s best for the club/members/staff.”
Do not play the blame game, either. “The best boards understand there is unanimity in actions regardless of divergent opinions expressed in the boardroom. That goes for the GM as well,” comments Reese. Although sometimes difficult, it is vital that responsibility be taken and for the general manager to move forward quickly recommends Bendy.
When clubs make financial missteps, it is imperative to regain the board and the club’s confidence. “Stay atop the issue and develop a conservative and best-case cash flow analysis for the next five years,” says Bendy. Include key assumptions such as dues, initiation fees and operational cash flow. This gives club stakeholders an opportunity to get a full glimpse of the road ahead and plan accordingly.
Changing Club Cultures
“An educated board will be aware of trends in the industry, statistics and comparisons from peer group of clubs, membership survey results (and what those member “wants” cost), and general feedback from the membership,” say Bendy. For instance, as more clubs consider transitioning from a traditional golf-centric club model to a family-centric model, general managers may feel pressure from one faction of membership to advocate for more family-oriented programming. Although this is a popular trend in the industry, general managers and boards need to understand whether this move is right for their club.
“Switching club models is a long-term effort and begins well in advance of putting any plan into action,” says Bendy. Keeping boards aware of macro-level trends in the industry, as well as the goings-on at nearby clubs, can help make the appropriate decision. Reese adds, “Look at your neighboring clubs in the market, particularly those who have full lists of membership and who are expanding their programming. Nothing may be as compelling as keeping up with the Joneses.”
Conduct a membership survey to gauge the club’s desire in moving toward a family-centric model and weigh that against the costs. When there is a consensus, a club can make the change at the appropriate time. Says Bendy, “A cultural change will take longer to achieve.”
Maximizing Healthy Board Relationships
Although general managers are hopeful that they experience excellent board relations in perpetuity, they must be realistic. Reese likens it to sports franchises that understand that the window of opportunity for the team to win a championship can be fleeting. Similarly, the same can be true for boards and their general managers as board members cycle through their tenures. “When you have great relationships with board members, capitalize on them because all too soon their tenure is up and you may have squandered a golden opportunity for your club to make real progress for the future,” says Reese.
Bendy agrees. “If there is a good plan in place—capital improvement plans, membership development plans, operational plans that can be acted upon—that’s the best time to put those plans into action.”
- Chag offers the following advice to keep board relations healthy: Be professional to be viewed as competent.
- To be successful, anticipate the workload of a governor and do what you can to carry that burden. Don’t have an ego.
- Make sure you have personal relationships with board members. Know their families, have enough information to be able to connect. Additionally, leverage good relationships to build a coalition. Gain momentum and support on sticky issues or breaking through into new uncharted territories. “If successful, you will likely build the entire board into the GM’s personal cheering section,” says Reese.
Conclusion
Although rich and complex, the board-general manager relationship can be a fruitful one. By employing these best practices, and ensuring that the general manager and board communicate, remain proactive, and support the club’s overarching mission, they can position the club for success for years to come.