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Club Governance
Gary Hamilton, J.D.Professor The Collins College of
Hospitality ManagementCal Poly Pomona
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Learning Objectives (Pre-Application)
By the conclusion of this session you should be able to understand and apply the following concepts:
Formal versus Informal Organizational Structures Club Elections: Process and Procedures The Role of the Board Board Characteristics Power, Status, and the Political Reality of Clubs Managing Member Expectations Critical Communication Concepts The Role of the General Manager Decision-making and Governance “Best Practices” in Club Governance
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Club Organization
Board Information BOD/Committee Rosters Meeting Dates Expected Commitments Sample Agenda Board Orientation and Retreats
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Club Organization
Organizational Chart
Elected and Voluntary Leadership Staff Organizational Chart Sample Org Chart
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Organizational Structure (Informal)
Past Presidents “Regulars in the Men’s Grill” Political power brokers
Internal External
Stakeholders beyond the club Power, status, and political savvy
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Club Governance: Contracts
Employee Vendor Services Employee manuals Others
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Club Governance: Additional Considerations
Decision Making
Common Law Statutory provisions Affirmative Duties Breach Indemnification Ultra Vires
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GM as COO
Planning Organizing Staffing Directing and
Leading Controlling
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GM as COO
Ex Officio member of Board and Committees
Counsel / advisory providing expertise and
judgment consultant role
Staff Identified as “Note taker”
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Board Responsibilities
Policies Governance Financial Oversight Voting on New Members
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Board Responsibilities
Member Discipline Affirm Mission & Vision Orientation Communication
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Board Responsibilities
Expectations Member Board General Manager
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Board Responsibilities
Establishing and Enforcing Rules of Conduct and
Behavior
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Board Responsibilities
Executive Committee
1. Handles “sensitive” issues2. Monitors full board3. Assess GM’s performance4. Prioritizes Issues5. Facilitates Board Productivity
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Board Responsibilities
Objectives SOP’s Administration Committee Organization &
Review Delegation Authority Specialty Consultants
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Board Responsibilities
Elections & Annual Meeting Odd number of members to ensure
a majority vote Well defined election process Two (3) year, staggered terms, if re-
nominated
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Board Responsibilities
Elections & Annual Meeting President enjoys equal voting
privileges Presidents – (two) 2 consecutive
one year terms Past President – Ex Officio Committee Chairs to Board
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Board Responsibilities
Membership Voice Financial Oversight & Audit
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Board Duties and Responsibilities
The Duty of Care / Due Diligence
The Duty of Good Faith / Loyalty
The Duty of Compliance
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Board Characteristics
What are the Salient / Desirable Characteristics of a Board?
Empty exercise? Luck of the draw? Farm Team Strategy? A Structured Event?
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Board Selection: Some Considerations
Formal Process for Identifying Candidates
Nominating Committee Review Avoiding ‘Competitive’ Elections
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Board Selection: Some Considerations
Contested Election Procedures Open Slate Slot Nomination by Petition Experience & Diversity Electing Board Officers
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Board Conduct
Establishing aCode of Conduct
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Board Ethics
Fiduciary Duties IdentifiedCode of EthicsConsent Form
Confidentiality Agreement(for proprietary financials)
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External Regulations
Federal law IRS implications State law City ordinances Real Estate/Trust implications
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Club Organization:SOP’s
History of Board Actions: 5 year timeframe Club Impact Date Adopted Policy History
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Club Organization:SOP’s
Current Policies Governance/By Laws Membership Finance Operations
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Board Budget Functions
Budget Philosophy initiation fees member dues special assessments
Annual Budget Process Operational Forecast by
Department
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Capital Budgeting
Defined: Dollar Limitation Project Proposals
Priority Assessment Process Timing
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Capital Budgeting
Recommendations Budget Approval
Contingency funds established Authorization
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Finance & Budgeting
Annual Audit Process Audit Letters
Credibility enhancers
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Capital Budgeting
Project Category Repair & Replacement from Capital
Dues Member Services Enhancement
from Initiation Fees
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Status of Technology
Capital Investment Summary Technology Plan
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Human Resources
HR Policies and Procedures Staff
hiring assignment termination grievances performance evaluations salary determinations
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Human Resources
HR Policies and Procedures Benefits
Health Care Retirement Matching Perks for Seasonal Associates
Employee Manual
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Human Resources:Management Control
Key components/considerations Report directly to GM Accountability Are you in charge? (see next slide!)
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Human Resources
Supervisory Responsibility Tennis Pro Golf Pro Course Superintendent Controller Maintenance
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By Laws
Current By Laws History of Board Actions Review Cycle New Legal Developments & Exposure
Legislative Updates
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Insurance Coverage
Insurance Summaries Coverage Deductibles Exemptions Cost
Advisory letters from Carrier
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Legal & Legislative
Confidentiality Litigation Internal Conflict Ramifications and Recourse
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General Club Dynamics Activities Calendar Hours of Operation Club History Newsletter Web site Information Menu Overview / Access Banquet Services
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Membership
Membership totals by class and variances
Detailed demographics
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Membership
Membership Applications and Procedures Fees Sponsorship Membership classes Payment programs
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Membership
Membership trend analysis Competitive fee analysis Regional trends Membership Satisfaction Surveys
and Results Value and Services Assessment Membership Roster
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Strategic Planning
Executive Summary of Member Survey
Current Strategic Plan Facilities Report
Schedule of Assets Depreciation Schedules
Capital Investment Strategies
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Board (and
Committee) Orientation
A. What is orientation? - It can help new members understand
what is and what is not expected of them.
- It can give current members, board/ committee, leaders, and the GM / COO a chance to welcome the new members and to share their collective knowledge.
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Board (and
Committee) Orientation
What can it do for you? - It can help secure the future of the club.
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Board (and
Committee) Orientation
B. Five Objectives to Orientation Bring new members up to speed Build loyalty and enthusiasm Communicate the club’s mission Teach policies and procedures Introduce formal and informal
networks
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Board (and
Committee) Orientation
C. Who Conducts Orientation?Effective orientations are those that involve several people including:
-GM / COO
-Club Attorney -Club Board President -Other board members -Other staff members
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Board (and
Committee) Orientation
D. Role of Board President or Committee ChairE. Role of Board or Committee
MembersF. Role of GM / COO
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Board (and
Committee) Orientation
Format of an OrientationTypes of Orientations
- Group sessions - Individual sessions - Self-orientation - Mentor sessions
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Board (and
Committee) Orientation
Orientation ActivitiesCommon activities to include:
-Tour of club - Discussion / overview session - Meal - Slides or media presentation - Panel discussions
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Board (and
Committee) Orientation
Orientation ActivitiesCommon activities to include:
- Distribution of printed material
- Question / answer session - Board or committee
meeting - Follow-up actions
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Board (and
Committee) Orientation
Orientation Materials (Format)Three common formats include:
File or pocket folders- Three-ring binders- Multiple binders
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Board (and
Committee) Orientation
Orientation Materials
Materials for New Members Organization Chart Club’s Mission Statement
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Board (and
Committee) Orientation
Orientation Materials
Definitions of Responsibilities Club Bylaws and
Articles of Incorporation Club Rules, Policies and Procedures
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Board (and
Committee) Orientation
Orientation Materials
Club Financial Information Minutes of Meetings Pending Issues Calendar of Events
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Board (and
Committee) Orientation
Orientation Materials
Names and Biographies of Members
Names of All Committees and Chairs
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Board (and
Committee) Orientation
Orientation Materials
Director’s and Officer’s Insurance
Meeting Procedures and Customs
Club History
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Board (and
Committee) Orientation
Implementation Plan
1. Setting orientation objectives 2. Delivering orientation materials 3. Planning the agenda
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Board (and
Committee) Orientation
Implementation Plan
4. Informing the involved parties
5. Conducting the orientation 6. Following up with new
members
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Learning ApplicationsNow that you’ve completed the session: What is the most important “take away”
concept you’ve personally learned? What idea(s) will you take back and share with
your staff? Which concept(s) will be important to share
with your membership? Which concept(s) will be important for you to
share with your President/Board? What do think will be your biggest challenge to
implementation?