Truly effective boards focus on three key areas: strategy, finance and governance. Boardroom excellence is defined by focus and allocation of resources, such as time, energy and talent. Club members who choose to be servant leaders for their clubs are paid nothing, devote considerable time and deploy expert business judgment to benefit the club. To be a top-performing board, the directors must conserve and focus their own time, energy and talent on mission-critical issues.
The board should focus on the primary goals and objectives within the club’s strategic plan. “Strategic Plan Update” should be an agenda item at every board meeting just the same as new and old business. The board’s focus on strategy should measure performance and progress toward fulfilling strategic goals. The general manager should provide the board a strategic scorecard that updates progress at every board meeting. Likewise, the board treasurer should confirm key financial performance metrics at each meeting. The manager and staff should provide the necessary support and analysis for the treasurer. Governance effectiveness and efficiency should be reviewed at every meeting as well. Are committees on task? Are directors preserving and protecting the assets of the club? Has the business risk of the club increased or decreased since the past meeting?
The board must assign operational authority and accountability to the general manager. The most effective boards are precise in what they require of the manager. Boards should know: A) trend analysis on membership growth (up or down); B) trend analysis on member retention; and C) member satisfaction. These factors drive the economic needs of the club. Directors should avoid engagement in operational problems and solutions, such as employee supervision, menu critique and selection, and program management. That is the general/club manager’s job.
Derek Johnston is a partner at Global Golf Advisors, drawing on prior internal audit and governance experience from work at Deloitte and Anderson Consulting. He can be reached at [email protected].