Boards of Help

Three veteran GMs compare Boards that give you room to operate to those that just keep calling you into the room.

by Don E. Vance, CCM (editor@clubandresortbusiness.com)
September 2007
 

Steve Kraft, PGA, is Director of Golf at Fairfield Glade (Tenn.) Community Club. The 13,000-acre property has over 16,000 property owners who are all considered members; in addition, several thousand timeshare owners have membership privileges. Kraft has 27 years of experience in the industry and has held General Manager, Director of Golf and Head Golf Pro positions at several clubs in the Midwest and East.   Bill Ward is the GM/COO of Jackson (Tenn.) Country Club, founded in 1914 and currently 650 members strong. In his current position for two years, Ward previously was GM/COO of The Ridges G&CC in Jonesborough, Tenn.; he has also held Assistant GM, Clubhouse Manager and F&B Manager positions at Mountain Air CC (Burnsville, N.C.), Cherokee Ridge CC (Union Grove, Ala.) and Gettysvue Polo, Golf & CC (Knoxville, Tenn.).

Relationships with your Board of Directors (or your ownership, if you don’t work for a private club) are as critical a part of a general manager’s working life as telephones, computers and having enough clean water glasses. And whenever club GMs call each other or get together, it usually doesn’t take very long before we start to compare notes (and share war stories) about how we get productive support from our Boards, and how we try to keep the more troublesome Directors at bay.

So as most of us wind down another season, I thought it would be interesting to have a conversation with two of my colleagues about the current state of boardroom relations in our profession. Here are some of the things I discussed with Bill Ward, GM/COO of Jackson (Tenn.) Country Club, and Steve Kraft, currently Director of Golf at Fairfield Glade (Tenn.) Community Club, who has been a GM/Head Golf Professional at many different properties over the course of his career.

VANCE: Do you feel you and your club benefit from having a Board of Directors?  

Kraft: At Fairfield Glade, with the size of our community association, we must have a Board that can make decisions on the big items. If we left it to a vote of the members, we’d never get anything done. Also, most of the time the Board is your biggest supporter and Board members can serve as salesmen for projects. An example would be a new irrigation system that was recently completed at one of our courses. This was a very ex-pensive capital project, and the Board helped to convey its long-term benefits, making it easier for the whole membership to buy in.

Ward: There are definite benefits to having a Board, particularly at a member-owned club. This allows the members, not only through the Board, but also the club committee system, to have a voice in governing their club. Also, there is a wealth of talent, expertise and experience within the membership that, if effectively tapped and channeled, can be a tremendous resource to the club.

And I agree with Steve: The main benefit of a Board is that you can create an effective line of communication to the members for their increased understanding and appreciation of the particular issues and challenges facing the club and its management team.

VANCE: Are there cons as well as pros?  

Kraft: I think we all like being our own boss, so in that respect, having to answer to anyone would be a con. Also, many times the directors do not have hospitality industry backgrounds, and this can make it difficult to explain just how important customer service is in our business. Boards can also micromanage areas they don’t totally understand.

Ward: The cons generally stem from poor leadership by the Board and/or the General Manager. Boards that either don’t take their responsibilities seriously—or take them so seriously they overstep their bounds—can create real problems.That is where effective leadership by the club President and GM is needed, to ensure that the right culture exists for the Board to function properly. This can be accomplished through orientation programs, retreats, and careful selection of nominees who bring certain strengths and skills to the Board.

And, as Steve said, probably the most common downside to having a Board stems from when they become micro-managers. This can create real problems and confusion with the overall operation of a club, if it is not properly addressed and corrected.

That’s why it’s critical for the GM to exercise leadership by developing and implementing an effective Board orientation program, through which “job descriptions” for club officers, Board members, the General Manager and staff are all clearly defined. Then, when the Board sails into day-to-day operations, the GM will be better able to step in and steer the ship back on course.

VANCE: What changes would you like to make with your Board of Directors?  

Kraft: I think it could be beneficial for the members of the Board to spend a few days in the field and see what it’s like working with the membership and and just what happens on a day-to-day basis. I feel this would help them really understand what it takes to make the operation work.

Ward: I think we could have a better cross-sectional representation of membership on the Board. We definitely need more young- family and female representation.

VANCE: Could you operate without one?  

Kraft: In our situation, being a community association, I don’t see how. There are too many people with too many thoughts and ideas that nothing would get done. A Board is needed to direct the long-range plan of the community; in my opinion, this is really the most important Board function.

Ward: Obviously, some clubs can, and do, operate effectively without a Board; I have previously worked at some developer-owned clubs that are cases in point. However, we need to be careful to distinguish between club “operations” and club “governance.” It is the role of the General Manager/Chief Operating Officer to manage club operations. It is the Board’s role to govern the club by establishing policies, approving budgets, and developing its long-term strategic plan. At a member-owned club, it would not be fair nor appropriate—not to mention that it would violate the club’s bylaws— to govern it without the input of its rightful owners.

VANCE: What could your Board do to become more effective?

Kraft: The Board I have worked with here has been very effective dealing with some very big issues in the community, and devoting long hours to seeing that the right things have been done. Spending more time on what the needs of the future will be and how those can be addressed, and creating a vision for the direction of the community, would continue to be a better use of their time and efforts versus spending so much time on day-to-day operations.

Ward: I currently work with an outstanding Board of Directors; they are passionate and care very deeply about their club. They understand and respect their roles as well as mine, as their General Manager/Chief Operating Officer. I guess I do wish some members were a little more involved or took their responsibilities a little more seriously, but that is always going to be the case with any group of individuals. And again, from time to time, some Board members will put on their micro-manager caps. At that point, you just have to respectfully try to guide their enthusiasm and interest into the proper channels.

VANCE: How do you see Boards changing?  

Ward: I don’t think you’ll see any drastic change in the way Boards operate in the near future; there is simply too much tradition, ingrained club culture and established ways of doing business at most clubs. However, I do think those clubs that truly understand and embrace the General Manager/Chief Operating Officer concept will have more clearly defined roles and responsibilities within their Boards, more consistent and effective club leadership, and a more symbiotic relationship between the club’s officers and the management team.


Kraft: People seem to have less time than they used to or are involved in more activities than before, so it is hard to get people to devote the time to be on a Board. Also, some people are so critical of Boards that it takes longer to get decisions made, for fear of the response from the membership.

VANCE: How many members sit on your Board of Directors?  

Kraft: Seven for my current position. I have been at a club that had 13.

Ward: Nine voting members, plus a current non-voting club president who was asked by the Board to serve an additional one-year term.

VANCE: Do you report directly to the Board of Directors Club President or a Committee Member?  

Kraft: In my current position as Director of Golf Operations, I report directly to the General Manager. In previous positions I have had as GM, I always reported to the Club President.

Ward: As General Manager / Chief Operating Officer, I report directly to the Club President.

VANCE: How often does your Board meet, and what’s the term of your club president?  

Kraft: Once a month and a one-year term—but someone can be President throughout their three-year term on the Board.

Ward: Once a month, unless a specially called Board meeting is necessary to address a specific club issue or need. And the club president’s term is one year.

VANCE: What is the term of each Committee Member?  

Kraft: Each Board Member is elected to a three-year term. After completion of the first term they can run for a second three-year term.

Ward: Each year, three new Board members are elected to serve three-year terms.

VANCE: What are your reporting requirements to your Board of Directors?  

Kraft: I make a written report on the golf division monthly and then meet with the Board face to face once a month as well.

Ward: Officially, I report directly to the Club President. Each month, I prepare the monthly Board report and set the agenda which typically includes the Club Operation’s financial summary, membership reports, departmental updates, various Club committee reports, and any additional that need to go before the Board for their knowledge and/or approval. I also prepare and submit the Club’s annual operating and capital budgets for Board approval.