PRIVATE CLUBS
GOVERNANCE & PROGRESS
Private clubs are a fascinating microcosm of our political system. Change may as well be a four letter word in some places, progress is sometimes defined by a lack thereof and some club leaders are often too deeply involved in too many areas and stay involved way too long. Sound familiar? Just like Washington.
There are numerous manuals for club governance models, selection of board members and procedures. As something of a fan of the benevolent dictatorship model, I often lament that doesn't happen at most clubs and the board/committee scenario is often the law of the land.
With this system of governance, often the simplest of decisions (especially policy changes) require the input of staff, consideration by the appropriate committee and action by either the executive committee, the board or both. This can sometimes take months, if it ever happens at all, and sometimes necessary change is implemented too late to be productive. Despite the membership of many clubs often including many decisive community leaders and successful professionals, a common response to many situations is to ask how other clubs deal with the issue at hand. It's always been surprising to me that rather than distinguishing themselves from their competition (or "peer" clubs), many clubs (that all claim to be the best) care way too much what the others are doing.
Club leadership (like political leadership) needs to be chosen carefully. At most clubs there are the typical mix of candidates, ranging from the "Law & Order", hard line rules oriented members, and the "fiscally responsible" members who oppose all spending to the progressive, pro-spending and rule-bending (usually younger) members who seek change. Leadership needs to understand that the future of the club depends on the direction they take, and it's not always the present members that matter but also the future members.
An interesting example of this is the issue of push carts at private clubs. An interesting article in the Wall Street Journal from 2014 addresses the issue of push carts at private clubs and identifies what could be an evolving trend. Long seen as part of the municipal golf culture, modern push carts and their powered versions are popping up at more clubs, including some top tier clubs like Oak Hill and The Country Club in New York and Massachussetts (as per the article), both hosts of multiple major championships and boasting illustrious histories. Some contend that push carts "cheapen" the club and "look" bad, not always explaining why, but preferring to maintain tradition. With member satisfaction seemingly the goal of all clubs in a competitive environment that where no club can consider itself immune, we wonder if this is a trend of the future. More health conscious members desire to walk the golf course, may not want to spend the $80 to $100 per round for a caddie (where available) and want to preserve their shoulders and backs, especially as we all age. Some top college teams now REQUIRE their players to use push carts to avoid injury. Golf seems to be led by the customs and policies at private clubs. The game's traditions are precious and should be respected, but not at the expense of the health and growth of the game. No doubt, we're all aware that cell phones on the golf course can cause distraction, but as I've always said, if you take away the cell phone of an inconsiderate person, you still have the inconsiderate person. He'll find another way to ignore and irritate his playing companions. If someone is prohibited from using his cell phone, he may not be able to use the club. Young (potential) members resist some of the dress codes at many private clubs and seek alternatives to golf. Are issues like these worth risking the growth of the game?
Private clubs, in a leadership role need to consider which traditions are productive and which may be counter-productive. Clubs that succeed in the future will realize that responding to the desires of their (present and future) membership will result in the long-term stability they all seek. Timely decisions are key to continued success. Like the old commercial use to say, "It's not your father's" country club anymore. Change will occur. It's just a matter of when and whether it will be positive change or negative change.
We, at Golf Property Analysts were recently engaged by a club that is being pursued for purchase and asked us to identify and analyze their club, facilities and options. Selling the club may be one of the options, and the board wants to be in a position to make informed decisions for their future. Change of some sort is likely in their future and despite being cash flow positive, they've taken the opportunity to get informed sooner rather than later. Good advice.
