May 20, 2014

Board of Directors Orientation

Confessions of a General Manager Three Phases of Board Relations

-”An interruption to my work”

-”I will do their work”

-”We will work together”

Sheboyan Market

Competitive environment with dozens of good restaurants and many of the best golf courses in the region

We compete with daily fee courses and area restaurants and banquet facilities

Any way that our members spend their entertainment dollar is competition

The need to bring “Our A game”Finding gaps in the market

How Do We Compare?

Comparable number of golf of golf members 180 - 400 Diverse membership – particularly economically diverse 8th best golf course out of 500 in the state Full service country club We have a 5 million dollar head start to greatness Golf Course Superintendent, Golf Professional and

General Manager nearly 100 years of combined industry experience

Pine Hills Country Club is a BusinessOver a $2,600,000 a year businessOver 75 - 100 employees in peak seasonAssets---millions of dollars of real estate and

facilities and over a million dollars of equipmentThe need for efficient and professional policies

and management of these resources

“A private club by definition is a luxury. It is not typically an environment where the goal is to save money. However, it is incumbent upon the committees, board and management team to be sure that it is not an environment where we waste money.”

Pine Hills Country Clubis a Family Home away from home A home with a very diverse family Making the best decision for the entire family Balancing “business with family” It is very important as a board member to remember that

balance Chicago Alderman comment

Demographics and Psychographics

We are a collection of minorities Age Occupation Education and Travel EXPECTATIONS!

Dealing with Diversity – F and B Menus and events need to reflect the diversity

of the membership Market for the month – not every event or

every night will appeal to all members Over the course of the month offer something

for nearly every group Plan for the current member and for the future

member

Dealing with Diversity - Golf

Degree of difficulty Type of events Practice facility Only club vs. many clubs experience Continual improvement vs contain costs Hippocratic Oath Bunkers, bridges, irrigation People, equipment, course

The Role of the Board and Committees What YOU bring to the Board of Directors

Historical perspective Member perspective Outside perspective Business Management and Planning

Experience A desire to maintain and improve the club

Impact of Age and Profession Generation Profession

EntrepreneurCorporateDoctorSales and MarketingAccounting

Board Member Perspective Previous club experience Length of membership Other Board experience Constituency

Who will be talking to you….?Are you here to represent a constituency,or to represent the entire membership?

5 Primary Functions For Every Board Member

1. Approve membership applications and resignations

2. Review and approve the annual capital and operating budget

3. Establish and review club policies and objectives4. Serve as committee chair5. Hire the general manager

Board Dynamics by Dick Kopplin, President Kopplin and Kuebler

Responsibility Matrix

Activity/Decision Board General Manager_______________ Budget Approves Recommends and

provides input

Capital purchases Approves Prepares request

Staff evaluation Evaluates Evaluates others only GM

Daily operations No role Leads management

team to make decisions

Board Dynamics by Dick Kopplin, President Kopplin and Kuebler

The Board’s Role of Policy Making and Planning

Shape the mission and the future Level of quality of services and facilities What services are to be offered, when and where they

will be offered Final approval of Annual Budget needed to obtain

desired quality Decides on capital spending and planning

Goals Not just survival but success! More effective committees Enhance the member experience Grow revenue Membership goals

Replenish and continue Full golf membership

Capital goals The timely repair and replacement of the club’s assets

Committees Provide Member Input

C o u ntry C lub S tru c tu re

C o m m itte esA d vise B o ard an d Te am

M a na g em en t Te am

B o a rd o f D ire c to rs

Committees are Advisory Groups Channel for member requests Provide ideas and expertise to General Manager and

Management Team Develop details of policy for Board approval Committee membership can provide experience for

potential board members

Board Member Role As Committee Chairman

Committee selection Diversity Meeting schedule – very few need to meet monthly Goals for the year Work with management team and get agenda out a week in

advance Meeting reminders Minutes taken and submitted for board packet Informational items Action Items!

General Manager Concept “The Buck Stops Here” Coordination of calendar and finances Helping everyone do a better job Management Team Committees Board of Directors Officers

Three Types of Manager/Board Relationships

“We will tell the manager what to do.” Day to Day Operations Policy and Budget Issues Primary focus is on short term problems and solutions

The Second Type

“We will protect the club from the manager” Spirit of distrust Great involvement in day to day issues Chain of command Limited input from manager on Policy and Budget Issues

Third Type of Relationship “We will work with the Manager”

Limited involvement in day to day operations Look to manager for input on budget and policy issues Make final budget and policy decisions Focus on medium term and long term goals

General ManagerSpan of Leadership

General Manager

Paul Hattimer

Golf Course Superintendent

Rod Johnson

Golf Course Team

Head Golf Professional John Wallrich

Golf Service Team

Head Tennis Pro Art Santos

Office ManagerRosanne Latham

Receptionist

Dining Room Manager

Brandon Hurst

Food Service Team

Bar Manager Scott Kress

Bar Service Team

Banquet and Events Director Emilie Gerhke

The Country Club BudgetProvide high quality products and services in a

well maintained facilityGeneral Manager, Controller and Management

Team prepare budgetCommittees provide input on budgetFinance Committee reviews/approves budget Budget presented to the full Board for approval

Key Points About Club Revenue! Dues are the number one source of revenue Quality and satisfaction generates dues Golf Carts and Guest Fees are second Banquets are third Ala carte Food and Beverage is a service that attracts

and retains members – an amenity

Banquets and Club Events Higher gross profit margin Economies of scale

In food preparation In service

Less guess work, less waste We know when they will be served How many will be served What will be served

Key Points About Club Expenses! Large fixed costs. So volume is important Largest cost is payroll, nearly $1,200,00 a year Productivity – making the most of our labor dollars Sometimes we will underestimate “We are not short on

staff we are long on members.”

The Board Meeting

Getting things on the agenda Is it something that should go to a committee? Contact General Manager 7-10 days prior to meeting If possible discuss with other Board Members prior to

meeting Avoid recurring issues

A Quick and Productive Meeting Preparation and germane discussion Hidden Agendas Common mission and goals Will the decision attract and retain members? Confidentiality One hour of preparation

Financial Information

InventoriesGeneral Manager Variance ReportDues are what we seekGolf IncomeFood and BeverageParties and Profitability

Your Questions and Suggestions Did you find this helpful? What can be done to make it more helpful? For you? For

future Board members? Next steps

Clubhouse tour Grounds Department tour

Closing Thoughts

“A politician thinks of the the next election, a statesman thinks of the next generation.”

Strategy vs. Tactics Board is crucial in establishing the long term identity and

future of the club

Thank You For Volunteering!

Paul S. Hattimer, CCM

General Manager