|
Let's Play Pig in
the Middle
How to Improve your Board's
Relationship with your GM |
| Caught in the middle…not a comfortable position, but not an
unusual position for a general manager of a private club. It's sort of
like the kid's game "pig in the middle," you don't get out of the
middle until you catch the ball, or knock it down. |
| The general manager or chief operating officer is that person in
the middle as the buffer…the influencer…the point person between the
members and the board of directors in the private club. At the same
time, the GM has to work with a volunteer board of directors to
achieve the goals and objectives of the board and the membership…a
relationship that's vital to a club's continued success. |
| As a GM you don't get out of the middle until you "catch the
ball." |
| There are many factors influencing the relationship between a
board and the GM, not the least of which is the board's daily
intrusion into the management of the club's operations. It's a
situation of where a board is not satisfied with establishing policy
and giving the GM the tools to do the job, but where the board, or
members of the board inject themselves into micro-managing the daily
operations. All of which causes distress for boards, management and
members. Why does it happen? |
| There's a need to articulate policies, roles and responsibilities
but these must flow from a beneficial relationship between the GM and
the board of directors. So the question is: How can the board improve
its relationship with the general manager to make it more productive? |
| It's a matter of trust, says Richard Kopplin, president of Kopplin
Search Inc., based in Scottsdale, AZ. There may be a high turnover of
many private club positions, but at the same time there are "some
general managers who have served five to 10 years in every positions
they've held," he said. |
| "I believe the secret to any long tenure is the general manager's
ability to build trust with the board of directors." And to make that
trust relationship happen there are a number of strategies to develop. |
| Norm Spitzig, a principal with Palm Beach Gardens, Fla.-based
Master Club Advisors, a private club executive search firm, suggests
the key to improving the relationship lies in the board "better
understanding the full scope of today's general manager's authorities
and responsibilities." Reaching this understanding begins with board
members completing an orientation that more fully clarifies their
roles. "Interestingly enough," says Spitzig, "any reluctance on the
club's part to take this step comes, more often than not, from the
general manager rather than members of the board. |
| "Board members, for the most part, really want to improve their
relationship with the GM and are willing to do what it takes to
achieve this important goal." |
| Communication, he stresses, is another factor. "A board can
significantly improve its relationship by providing regular, honest
feedback on the GM's performance. An open, candid evaluation process
including a forthright discussion of areas needing improvement, will
prove a valuable tool for both improved performance and increased
loyalty to the club," Spitzig related. And this he feels has to
dovetail with a clear definition of roles and responsibilities. "This
effort on the front end will help minimize misunderstandings and
confusion, and in so doing, produce more productive and satisfied
management." |
| That role clarification is essential is emphasized by Tarun Kapoor,
CEO of Kapoor and Kapoor, a hospitality consulting firm based in San
Marino, CA. It's a triple layer of clarification and accountability. |
| "The general manager, the executive committee and the board each
must know what they're responsible for, have the authority to do what
is necessary, and know what they will be accountable for." The lack of
role clarification is where there is often confusion within the
private club structure. |
| "Roles must be articulated and then enforced," Kapoor said.
"Problems invariably come up when volunteers feel they have the right
to execute decisions affecting the club's resources, yet they may not
have the authority to make the decision." |
| What does Kapoor suggest? "I'd recommend the role of the board
and/or volunteers, be one of setting the strategic direction,
establishing club operating guidelines then ensuring management and/or
volunteers are operating within the guidelines, and supervising,
auditing and managing the GM or COO." |
However, for all this to happen it goes back to the point
emphasized by Kopplin…TRUST, and there are eight strategies he feels
are vitally important in developing a high level trust relationship
between the board and the GM. A better, more productive relationship,
Kopplin suggests, revolves around these strategies:
- Professional visibility: As a young general manager I recall one
hot and humid evening walking into the dining room with my tie
loosened, sleeves rolled up and perspiration showing on my shirt. I
was not aware of my slovenly appearance or maybe subconsciously
wanted to demonstrate to the club members "how hard" I was working
into the evening hours. After recognizing and greeting the club
president, who was dining with guests, I visited a number of tables.
I thought I had done a very good job of "being visible" until my
club president met with me later in the week. He told me he was
embarrassed to introduce me to his guests because of my "disheveled
appearance." From that point on whenever I was visible in the dining
rooms or for that matter any area of the club where I might
encounter members or guests, I was appropriately groomed and
attired. And so were all of the other department heads of our club.
- Financial ability: One of the most effective ways a manager can
build trust with a private club board is to demonstrate the ability
to run the "business" side of the operations. During our annual
audit by an outside CPA company, I often asked more questions of the
auditors than they asked of me. I wanted to understand the
accounting principles that could improve the operations of our club
and I viewed the auditors as our club partners in that process. At
the end of the audit the CPA firm would write their report and after
reading it I always took the opportunity to respond to the auditor's
comments in writing. A trusted general manager will present the
variance report to the club board, commenting where necessary and
showing any trends that need to be watched. He/she will understand
the balance sheet and the operating statement of the club better
than any of the club's board members.
- BIG Guests: This acronym stands for Board Invited Guests. When I
was managing clubs our golf professional would copy the tee sheet
for the next day and yellow highlight any board members' names who
were bringing guests the next day. The dining room manager would do
the same for board members making lunch and dinner reservations for
the following day, preferably including the names of the guests
accompanying the member. I would insure I was available to greet the
board member and his/her guests by their names. Why? Because I truly
believe that it is one of the few ways a general manager can
recognize and thank club board members for the time and effort they
have given in volunteering to serve their club.
- Communicate: The best club general managers understand that "the
best surprise is no surprise." They will communicate with their club
president on a regular basis but certainly once every week. E-mails
have allowed for easy, daily communication and there is no excuse
for a club president to not be aware of any major issues developing
at the club, which may need his/her attention. The key to any
communication is understanding and it is important that club
managers clearly identify issues and their solutions in a manner
that allows the club president to grasp the key points completely.
- On Time Management: The general manager needs to be a "clock
leader." He/she should set the example of beginning all meetings on
time and limiting the length of committee and staff meetings to a
pre-agreed period. There is no faster way to build credibility (or
to lose it) than beginning a meeting exactly at the scheduled time,
whether or nor all of the participants are present. In fact, it is a
disservice to those who were punctual when the start of the meeting
is delayed only to benefit those who inconsiderately wander into the
room at will.
- Office visit: Many successful general managers are in the habit
of visiting the office of their club president rather than always
meeting at the club. For some reason the dynamic of the general
manager/club president relationship changes for the better when an
occasional meeting can be held on the club president's "home turf."
If the club president has retired then a visit to his/her home is a
good substitute.
- Action plans: Like any other business, there is a certain amount
of "process" that needs to happen in the private club. The best way
to address issues and implement solutions is the use of "action
plans." These plans outline in writing what the appropriate club
committee and the general manager are recommending to the board for
their approval. They are typically developed from the committee
agendas and will address the wide variety of issues in any club. The
key is to make sure these action plans are in writing and become
part of the board meeting agenda.
- Educate: Most club managers are interested in pursuing ongoing
education in their profession and typically achieve that knowledge
by their participation in the Club Managers Association of America
educational offerings. It is vitally important that general managers
share with their club president and club board members the
significance of their participation in the CMAA educational
programs.
|
| Publisher's final thoughts |
| For sure, opinions vary, but boards need to fully understand what
a general manager's roles and responsibilities are in the private club
industry today. These roles must be clarified so the GM, the executive
management and the volunteer board of directors each are fully aware
of their responsibility and authority. And ultimately, there must be a
firm trust relationship, as Richard Kopplin suggests. When this
happens, general managers flourish, boards flourish, the club's
culture flourishes and that means continued success for the private
club. At least, that's the way I see it! |
| What's your opinion. If you wish to respond to the Publisher's
Perspective, or other BoardRoom articles, contact Publisher John G.
Fornaro by email at
johnf@apcd.com. |
John Fornaro
Publisher |
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