ACROSS CORPORATE America companies tend to announce, well in advance, a leader’s impending departure. These announcements are often followed by the naming of a successor. This best practice approach is designed to minimize the uncertainty among stakeholders as to how the company intends to move forward upon losing an influential individual. Club leadership should consider several items in order to be prepared for the future. If your club does not yet have a succession plan in place, now is a good time to develop one.
Getting started: How do you begin the conversation with an individual who is nearing retirement? The key for having a sensitive conversation like this is to not have this conversation with just that member of the senior team, but rather the entire leadership team. Let them know you will be speaking with them individually as the club develops and/or updates its succession plan. General managers and board members are obligated to minimize the impact of a key staff departure when one occurs. Being prepared for the inevitable is simply good governance. While the information below suggests a senior team member is retiring, the process can prove equally effective in the event the departure is related to other circumstances.
Contract or employment agreement considerations: Does the individual have a formal written agreement or contract with the club? If so, what are the terms? Does it address retirement? Is there a prescribed notice period? Is there any type of longevity-based compensation that needs to be accounted for in the budget? Does the agreement have a formal expiration date that may serve as a mutual point of retirement? The employment contract and/or written agreement is your opportunity to not leave things to chance.
Communicating the departure: The GM should be the first apprised of the pending retirement of a senior team member. This allows time for the succession plan to be accessed and updated, and for key decisions to be made by the Executive Committee or board prior to making an announcement to the membership. How will the club communicate this change to the membership? What will be the content and tone?
What is an appropriate length of notice for a retiring senior leader? If you have an individual who continues to shine in his role, then a longer notice period may be appealing. If you have someone who has regrettably limped to the finish line, then a shorter period might be the better way to proceed.
Do you need assistance finding someone new? Does the replacement of every member of your senior team necessitate a Search Committee? What if you have easily identifiable internal candidates and/ or former employees? How about the services of an outside search consultant? Does the club have updated Search Committee charters for key positions?
How do you celebrate the outgoing individual? Will there be a member party, a senior staff dinner and/or an all-employee cake and punch gathering? In what ways will they be honored? Does their tenure and popularity earn them honorary privileges? The time to consider these types of issues is before you have a retiree reach that point. Discuss in advance what may be appropriate for your club’s culture and traditions. Will this set a precedent for future retirees of a similar stature? (Keep in mind that besides the retiree himself, those watching how the club celebrates this individual include the rest of the club’s employees, the membership and even prospective successors for this position.)
The transition: How do you welcome a new senior staff member? How long should the new and former senior staff overlap, if at all? Does that vary by position? Have you thought to schedule this transition during the best time of year for that area of the club’s operation? Proper succession planning is vital to the success of an organization. While you may not have all the answers when you first start preparing your own, asking good questions is a great way to begin.
NCA’s white paper, Chief Executive Succession Planning for Private Clubs, is available for download at nationalclub.org/clubgovstandards.
Luke O’Boyle is the general manager/COO of Chevy Chase Club in Chevy Chase, Md. He serves on NCA’s board of directors. He can be reached at [email protected].