A common and reoccurring problem that private clubs encounter is the proper classification of caddies and other club workers. Clubs often classify caddies as independent contractors when in actuality the relationship between the club and the caddie should be that of employer/employee. Since a worker
WHEN ASKED about the gross margin of their own enterprise, most successful business owners can give you an exact number, usually without any hesitation. Business owners keep close track of their gross margin because they recognize it as a critical indicator of financial health and
Lay the groundwork for better club governance through properly focused board education. One of the most unusual aspects of private club governance is the constant turnover of officers and directors. In most clubs, a new president takes over every year or two. Frequent turnover in
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
A good starting point is to first check to see that the committees you have are important. Club bylaws typically specify five to seven essential committees, but many clubs will have 10 or more. It is often the case that the ones that are additional
While governance is not traditionally viewed to be a proficiency of most club management companies, their expertise in club finances and strategy can be valuable. Management companies generally do not take over the management of private clubs without a full, explicit and documented construct in
While pre-recessionary conditions were causing a spike in initiation fees, clubs were creating structures that would pay deposits back. Unfortunately, once the economy shifted, resignation lists grew and people became disgruntled over the long wait for refunds. Plummeting membership sales began to force clubs to
OFTEN INNOVATION COMES when an established company moves into a new field and looks to differentiate itself from the competition. Sometime these companies have tremendous success because they are not burdened by legacy thinking. This is exactly what happened in 2014 when The Union League
Chances are if you ask any consultant to identify the number one complaint from boards about their general manager, it would be poor communication. This is also true for most memberships at large. Communication is central to organizational success, yet most of us struggle to
PRIVATE CLUB BOARDS have clear charges: 1) preserve and protect the club’s assets; 2) ensure effective strategic vision; 3) provide thorough financial resources; and 4) execute sound governance. Yet, many club boards struggle to achieve focused leadership, becoming distracted with tactical matters that should be