Posts Tagged ‘club operations’

Enhance Your Financial Reporting with the Executive Metrics Report

Monday, March 18th, 2019

Every month the club board, finance committee, general manager, and department heads receive copies of the club’s financial statement made up of the balance sheet and operating statement prepared by the club controller.  The intent is to provide all stakeholders with a summary report of the club’s financial performance.  Additionally, the operating statement is formatted to compare the most recent month’s performance to the same month last year and year-to-date performance compared to last year. While all this is well and good and customary for the industry, this summary information is long on overview, but woefully short on meaningful detail.  Further, the presentation of information does little to allow discovery and analysis of emerging trends.

Certainly a greater level of detail is available within the financial accounting and reporting system, but it requires special effort to dig it out, format it, and present it for analysis.  Given this, doesn’t it make far more sense to use a system that routinely presents key underlying detail?  Examples would include sales detail such as volume of business and average sale by department, key payroll detail such as overtime hours and benefits cost, membership numbers by category, and month-to-month and year-to-year comparisons of summary operating statement lines.

The simple solution to providing a deeper level of information for ease of analysis is to make the Executive Metrics Report (EMR) a key component of the monthly financial reporting package.  The EMR is made up of important operating metrics tracked by the financial accounting and payroll systems, along with key department benchmarks, both of which are formatted to provide month by month and year by year comparisons.

While every general manager and club board may have their own ideas of what metrics to include, Club Resources International has developed an Executive Metrics Report that covers key operating data.  Each club can take this basic format and customize it for their own needs and preferences.  Click here to see a sample Executive Metrics Report.  The EMR spreadsheet can be found on the CRI website under Club Operations > Resources > Benchmarks > Benchmark Spreadsheets.

The Executive Metrics Report is a significant enhancement to a club’s financial reporting and provides all stakeholders with important and timely data regarding the health and financial well-being of their club.  While it takes some effort to set up initially, the ongoing benefits for all concerned make it well worth the effort.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Do You Know What Your Club Management System Can Do?

Monday, March 4th, 2019

Club management systems have come a long way since their inception as point of sale, accounting, and financial reporting tools.  Over the years various upgrades have added timekeeping, payroll, and tee time systems; member relationship management tools; custom reporting formats; dashboards for key metrics; the ability to drill down to data entry detail; member websites and online activities sign ups; and even more powerful analysis of member spending habits.  Such improvements have gone a long way toward providing club boards and management teams with timely, accurate, and actionable intelligence about their club’s operations and performance.

My own fantasy is that someday a club management system will include everything a manager could possibly need to efficiently operate the club in one convenient, easy-to-access location.  Items that I would want to see include:  budgeting tools and templates; work planning and performance review modules; human resource information systems; detailed benchmarking by department; a server-based customizable operations plan with departmental standards, policies, and procedures (SPPs); training and professional development material for employees and managers; and training administration software. Several years ago while attending a Hospitality Financial and Technology Professionals chapter meeting as a guest speaker, I mentioned my fantasy to a sales representative for a club management system provider and was somewhat surprised by his response that in today’s feature-rich software, the great majority of features went unused by club operators.  In reflecting upon his statement I’ve come up with four possible reasons this might be so:

  1. The club’s leadership and decision makers – those key people who set the club’s agenda and drive operational expectations, such as the general manager, boards and finance committee members, and controller – don’t fully understand the capabilities of their club management system.
  2. While they may have reviewed the system’s features at one time and have a vague notion of its capabilities, they have neither the time nor the focus to implement routine use of key features.
  3. Ongoing turnover of key people can cause a lack of the awareness of software features.
  4. Without written accounting standards, policies, and procedures there is a lack of continuity in key accounting and financial reporting practices.  When the club’s operational practices are based on oral history instead of clearly delineated SPPs, things get lost over time.

To confirm my suspicions I spoke with Vache Hagopian, at the time Director of Marketing for Jonas Software, the largest supplier of club management systems.  He agreed with my basic assessments and quoted Bill Gates who said, “Most software upgrades/purchases are made to acquire features which were already available in their current software.”  This certainly doesn’t speak well for a management team’s knowledge and understanding of their software’s capabilities.

I then asked how a software company addresses this lack of understanding.  Mr. Hagopian indicated it was an ongoing challenge – one which Jonas works hard to overcome.  “First,” he said, “we offer a variety of training options to ensure client clubs are well-trained and understand all the features of their system.”  These include:

  • On-site personal training provided by accredited trainers,
  • One-on-one e-training with club employees which is a cost-effective method of training, and
  • Group e-training with monthly course updates. This is the most cost-effective way to train in that clubs can have as many staff members participate as they like.

Mr. Hagopian said that his company offers the Jonas Utilization Review process, which is conducted over the phone by one of their system specialists, providing a complete overview of a club’s software and education needs. The result offers an in depth report of the club’s software utilization and includes recommendations for software configuration, optimal usage and reporting, and proactive services needed for skill development. The specialist then assesses training and support needs, while developing a plan to meet the club’s specific objectives. Finally, the specialist outlines targeted training courses and appropriate resources to help equip the club’s staff with the skills and product knowledge to successfully carry out their daily work.

As much as some club managers may wish for a completely integrated club management system with everything they need to efficiently operate their clubs in one place, it seems probable that, as Bill Gates said, many of the features we want, we already have.

Bottom Line:  Conscientious club leaders and controllers should do annual reviews of their club management systems to determine if they are getting the most and best information out of their software package.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Eight Steps to Performance Accountability

Sunday, February 17th, 2019

The greatest failure in performance management in any enterprise is the failure to hold managers accountable for their performance.  Many clubs do a poor job in the area of accountability.  This failure is crippling to the long term health and viability of the club.  Here are eight steps to help measure performance and hold managers accountable:

Work Plans.  Have each manager prepare an annual work plan spelling out goals, proposed accomplishments, and timelines for completion of each item.  It’s always a good idea to involve managers in preparing their own work plans though these must be based upon broad guidelines from the board and general manager.  While their buy-in is important to their commitment to their individual plans, ultimately plans must meet the needs and desires of the board and general manager.

Budgets.  In order for managers of profit or cost centers to be held accountable for meeting budgets, they must participate in developing their own budgets.  An unrealistic budget will defeat a manager from the get-go, but “softball” budgets cannot be accepted either.  One of the best ways to budget is to use volume and average sale/hourly wage benchmarks to build the revenue and payroll parts of the budget.  Not only do historical metrics make for more accurate budgets, but analyzing these benchmarks on an ongoing basis makes for a better understanding of shortfalls in revenue or overages in payroll costs.

Benchmarks.  Club departments must be benchmarked in detail – at a minimum revenues, cost of goods, payroll, and other operating expenses should be benchmarked monthly.  These and other benchmarks are the most objective measures for holding managers accountable.

Real Time Accounting. Use the Tools to Beat Budget program whereby all managers with bottom line responsibility track their revenues and/or expenses in real time, thereby exercising greater control over their budget and financial performance.  Properly maintaining the Tools to Beat Budget binder provides all the information necessary for in-depth monthly reviews of performance by the General Manager and other interested parties.

Monthly Review Meetings.  Hold monthly meetings with individual department heads to review progress on annual plans, actual to budget performance, benchmarks, and efforts to correct operational and performance deficiencies.  These meetings permit ongoing review and course corrections or added emphasis as necessary.

Routine Departmental Inspections.  Use routine inspections with a standardized checklist to inspect all club operating areas on an ongoing basis.  Such inspections should monitor and note cleanliness, order, maintenance, safety, security, and other signs of organized and efficient operations.  These inspections when standardized, scored, and benchmarked provide an ongoing measure of these basics of an operation.

Interdepartmental Support Evaluations.  Since all departments of a club are interrelated and depend upon one another for peak performance, each department head should fill out standardized evaluations on interdepartmental support and cooperation.  As an example:  the accounting department will have a hard time meeting its requirements if operating departments do not submit coded invoices, payroll data, inventories, benchmarks, and other financial data in a timely fashion.  If department heads know that their performance in these areas is being monitored and rated, they will put greater emphasis in meeting these requirements.

Performance Reviews.  Base periodic performance reviews for each manager on specific accomplishments and meeting well-defined performance measures.  Meaningful reviews are directly dependent upon the effort put into defining expectations, establishing specific work plans, and creating objective measures for accomplishment and performance.  While it takes some effort to set up a system of objective measures, the rewards for doing so are immense and well worth the effort.

Unless a General Manager does everything herself, she must rely on the efforts and performance of her subordinate managers.  But without measurable accountabilities she has no real means to drive her agenda, performance, and other initiatives to improve operations.  When department heads aren’t held accountable, only the General Manager will be.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Mastering the ABCs

Monday, January 21st, 2019

As children we all mastered our ABCs, the basic building blocks of language and learning.  The term “ABCs” has long since come to signify the basics of any endeavor.

All of us who work in our industry recognize that the profession is made up of mastering the many basics of hospitality and service.  Even in an enterprise as seemingly complex as food service, it is the execution of the basics that underpin all our efforts and ultimately leads to success.

Of all the things I’ve learned in my hospitality career spanning over 35 years, the ultimate discipline of success is the necessity of executing the basics well.  Jim Collins’ research for his groundbreaking book, Good to Great, Why Some Companies Make the Leap . . . and Others Don’t, pointed undeniably to “disciplined people taking disciplined action” as one of the prerequisites to any successful enterprise.

While there are many innovative, cutting-edge ideas to improve the products, service, and performance of your operation, you must build these enhancements onto a foundation of the basics.

With these thoughts in mind, I’d like to commend to you the most basic, yet ultimate tip for operating your club that as you contemplate the many ways to add service and value, you must always focus your attention and that of your entire staff on the ABCs, that is . . . Accomplish the Basics Consistently

Excerpted from 101 Tips to Improve Your Club Operations.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Our Need to Serve

Sunday, January 6th, 2019

Jim Collins says that people “want to be involved in something that just flat-out works,” but I believe it is something more.  I believe that people have a great need to connect with or serve something larger than themselves.  Whether it’s building a skyscraper, embarking on a campaign to eradicate hunger, working on the design of an award-winning advertising campaign, or even dressing in favorite NFL team colors and attending all the home games – people need to connect to a larger purpose or endeavor.

Great leaders understand this basic human need and have the ability to create that connection for their followers; unfortunately, not always to good purpose-witness Hitler’s rise to power and spell-binding hold on the German people or, in recent times, the illusion of success created by the leaders of ENRON before its financial collapse.

But the connection I am talking about need not be a life-altering cause or event.  Most of us live rather uneventful lives.  While our need is to earn a living and support our families, an astute leader recognizes the opportunity to create something out-of-the-ordinary – a special enterprise that performs better than others and is a source of purpose and pride for all.

In connecting people to the challenge of creating something special, the leader feeds the employees’ need to do something beyond self while advancing the purpose of the enterprise.  All that is necessary is for the leader to frame the challenge in terms of shared goals.  In the service industry this is a fairly simple task. Our purpose is to serve.  The quality of our service encourages customers and repeat business, which in turn ensures the success of the enterprise for the owners, and, ultimately, the job security and advancement opportunities of everyone involved.

Throughout my career, I have met many eager, enthusiastic young people, some just starting out their adult lives and relishing the opportunity of their first jobs.  Unfortunately for most, their youthful idealism is crushed pretty quickly by the realities of the workplace, particularly when they are not well-led, when they are not properly trained or supported, and when they are treated as if they didn’t matter.

At the same time, I’ve heard managers complain about the poor state of the labor pool and their inability to find decent employees who have commitment to their jobs.  Listening to such complaints I have to wonder what steps these individuals have taken to motivate their employees, to provide training and meaningful work experiences, to connect their workers’ labors to a larger effort.

To expect that the wide variety of applicants for positions will inherently know and understand a leader’s vision and the values that underlie the enterprise’s efforts is foolish.  All employees, whether first-time job seekers or those who have worked in a variety of jobs and settings, need the vision of connecting to a larger purpose, and they need a Service-Based Leader who can provide them the meaningful employment that serves their greater needs.

Excerpted from Leadership on the Line – The Workbook.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

The 100/0 Principle

Saturday, December 22nd, 2018

Al Ritter has written a great little book, The 100/0 Principle, subtitled The Secret of Great Relationships.  While this may sound like any one of the score of self-help books published annually, one merely has to look at Mr. Ritter’s resume – MBA from Dartmouth, marketing and operations positions with Pepsico, CFO at Swift and Company, Senior VP for Citigroup, consulting for Accenture, and founding his own consulting company – to recognize that this short, simple, and easy-to-read book holds much promise for business leaders in any setting and level of organizational hierarchies.

I believe the simple concept at the heart of this book is arguably the single most important guarantor of success in any relationship, certainly in the personal arena, but beyond that in any organization or business enterprise. Such well-known leadership authors as John C. Maxwell, Brian Tracy, and Warren Blank have all recognized the central role of relationships in any attempt to lead.  As Maxwell said, “People who are unable to build solid, lasting relationships will soon discover that they are unable to sustain long, effective leadership.”

What Mr. Ritter so strikingly advocates in his book is that if you want any relationship to be successful, you must take 100% responsibility for the outcome while expecting nothing in return.  While this statement may seem shocking to some, I believe it is counter-intuitive wisdom of the highest order.  To examine why, consider the following statements relating to leadership:

  • A leader is responsible for his own success.
  • A leader is responsible for everything her organization does or fails to do.
  • In a free society, all but the most socially or economically disadvantaged followers have choice and can go elsewhere.
  • Meaningful relationships are based on trust.
  • Followers don’t automatically extend their trust to a leader; it must be earned.
  • As the one with the power and authority, the leader must take responsibility for establishing trust.
  • If, for whatever reason, a relationship with followers is not going well, a leader cannot expect or wait for others to fix it.
  • Ergo: He or she must take full responsibility for the relationship.

Mr. Ritter states and I believe that taking complete responsibility for your relationships and expecting nothing in return will yield vastly improved results in every arena of life.  His book offers concrete advice and steps, such as creative listening, suspending judgment, and unconditional acceptance, for readers to adjust their thinking and change their responses to difficult people, challenging situations, even “toxic” bosses.  While his experience with The 100/0 Principle has been mostly successful, he outlines a few situations where it doesn’t apply.  He also candidly admits that there are no guarantees that it will always work, but that in the majority of situations, dramatic results are achieved.

Roger Enrico, former Chairman and CEO of Pepsico said, “The soft stuff is always harder than the hard stuff.” I can’t imagine that anyone who has attempted to lead would dispute this basic observation.  Read Al Ritter’s book – it offers a simple and straightforward approach to getting the soft stuff right!

The Book is: The 100/0 Principle:  The Secret of Great Relationships, Al Ritter, Simple Truths, LLC, Napierville, IL, 2010

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Leadership Consistency

Monday, December 10th, 2018

Management teams can be dysfunctional for a host of reasons, but there is none so basic as a variety of competing leadership styles.  To expect that any group of managers, each with his or her own background, training, and experience, will have a similar and effective leadership style is unrealistic in the extreme.

Yet as with so many other aspects of management, consistency is essential to faithfully communicate and reinforce the club’s culture, service ethic, and environment for employee empowerment.  Without leadership consistency, employees get a mixed service message, and their morale and commitment varies from manager to manager and department to department.

Imagine a management team made up of department heads with the following leadership styles:

  • Military – with its requirement of absolute, immediate, and unquestioned obedience,
  • Democratic – where decisions are only made after lengthy discussion and debate,
  • Gunslinger – with its emphasis on shoot first, aim later,
  • Absent – where the leader is never around or is hiding in his office,
  • Aloof – while he is there, he never interacts with or engages his followers,
  • Uncommunicative – where the leader gives everyone the silent treatment,
  • Teed Off – where the manager is angry all the time at everyone,
  • Screamer – where he assumes everyone is deaf and yells at everybody,
  • Political – where the manager believes his only function is to suck up to members,
  • From another planet – where the leader expects that everyone will know what to do and will do it without being told,
  • Fear-based – where the leader rules with an iron hand and scares the heck out of everyone, and
  • Service-based – where the attitude and primary motivation of the leader is service to others – to members, to employees, to shareholders.

Clearly, such a jumble of leadership styles will lead to a confusing and contradictory example and message for employees, as well as create barriers to cooperation and teamwork between departments.

The solution to such a fragmented workplace is for the General Manager to promote a consistent style and application of leadership club-wide.  This can only be done by providing consistent leadership training to the entire management team.  Given the uneven comprehension of leadership issues among any group of managers, the benefits of a uniform understanding and application of leadership will bring club operations to a uniformly high state of performance.

Tip:  Use Leadership on the Line:  A Guide for Front Line Supervisors, Business Owners and Emerging Leaders and Leadership on the Line – The Workbook to teach Service-Based Leadership to your management team.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Spelling Out Your Disciplinary Process

Saturday, November 24th, 2018

Discipline is necessary to maintain the direction and focus of any organization and to establish and maintain standards of quality and service.  The desire is to achieve excellence and success and supervisors should understand that these goals are dependent upon the quality and commitment of employees.

Unfortunately, in every group of employees, there are some who have attitude problems, lack commitment, or are not capable of meeting standards.  When confronted with such a problem employee, it is the responsibility of supervisors to deal quickly and effectively with the situation before it degrades the efforts of the rest of the staff.

The following are suggested guidelines for a club’s disciplinary process:

Supervisor’s Responsibility.  It does no good to have rules, regulations, and policies spelled out, if they are not going to be enforced by all supervisors.  Whenever a supervisor overlooks an infraction, he encourages others to similar violations.  A lax supervisor can be more damaging than no supervisor at all.  Further, supervisors are expected to actively confront any problem employee in their departments with the aim of correcting the problem.  If it cannot be corrected in a reasonable period of time, supervisors are expected to discharge the individual while following established termination policies.

Good Communication.  Good communication is important when working with a problem employee. Some supervisors do not like to confront staff on seemingly small issues.  As a result, many small problems build up until the supervisor finally blows his top and is ready to fire the employee.  However, termination is inappropriate because the supervisor has not previously discussed the problems with the employee, warned him of the consequences of continued problems, or offered any help to correct the problem.  Good communication would prevent this situation.  If the supervisor talks frequently with employees, points out minor problems as they occur, and addresses continuing problems in a proactive and formal way, an employee will never be surprised should he be discharged.

Disciplinary Philosophy.  The club subscribes to the “Hot Stove” approach to discipline.  Employees are told what is expected of them and what the consequences are of ignoring rules, requirements, policy, and procedure.  If they then touch the hot stove, they get burned.  The rationale behind this philosophy is that supervisors want to deal with staff as adults who are responsible for their own actions and they want to avoid inconsistency in applying rules, requirements, policies, and procedures.

Rules, Requirements, Policies, and Procedures.  This philosophy requires that supervisors tell staff what is expected of them.  First, do this by spelling out in detail what the club’s rules, requirements, policies, and procedures are.  The Employee Handbook contains many club-wide rules for employees.  Second, expend some effort through orientations and formal training to make staff fully aware of their responsibilities and the club’s expectations.

Fairness and Consistency.  A club’s disciplinary process must be fair and consistent.  This will follow naturally from rules, requirements, policies, and procedures being applied fairly and consistently to all employees.  Supervisors who are not fair and consistent will create major problems within their departments.  There is no quicker way to destroy departmental morale and trust than to play favorites.  Often the perception of fairness is as important as the reality.  Supervisors should not only be fair, but also give all appearances of being fair.

Constructive and Progressive.  The club’s disciplinary process is designed to be both constructive and progressive.  By this it is meant that all disciplinary actions are aimed at correcting erroneous or inappropriate behavior and successive disciplinary actions will be progressively more severe.  These two aspects are, in reality, part of the same philosophy.  While the club wants to help employees overcome their problems, when the problems continue, it wants to get the employee’s attention with progressively more severe consequences.

Higher Standard for Supervisors.  Because of a supervisor’s position, experience, training, education, and other factors that led to hiring, they are held to a higher standard of conduct and performance than line staff.  In disputes between staff and supervisors, it is expected that supervisors will have solidly documented cases showing thorough investigation of any incident.  While supervisors will always be supported when in the right, line employees will be given the benefit of the doubt when there is insufficient evidence or the absence of a thorough investigation.  The best way for a supervisor to ensure that he is supported in his decisions is to have all his facts together before taking disciplinary action.

Summary.  Given the many potential pitfalls in discharging problematic employees, all managers and supervisors must have a thorough understanding of a club’s disciplinary process.  Spelling out the key elements of that process is an important first step.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Adding Value – The Club Controller

Friday, November 9th, 2018

The Club Controller is an important member of the club management team.  There are a number of constituencies that rely on the expertise and efforts of the Controller, including the General Manager, the club’s Board or ownership, the department heads with bottom line responsibility, and, of course, the employees who jobs depend upon the solvency of the club.

The Controller’s role is more than that of an accountant who, according to accounting definitions, records and reports financial transactions.  In addition to maintaining the General Ledger, Accounts Payable, Member Billing and Accounts Receivable, Payroll, and Financial Reporting, the Controller plays a vital role by assisting managers in maintaining the profitability of the club.

The functions of the Controller tend to fall into a routine of monitoring daily activity, processing bi-weekly payroll, ongoing processing and payment of invoices, monthly member billing, and end of month closing and financial reporting.  Once a year, the Controller has a central role in the annual budgeting process for the club.

But the Controller also provides guidance and assistance to the General Manager and department heads in meeting their fiscal responsibilities to the club and its members.  These managers have a broad range of detail- and labor-intensive requirements and must deal with the daily challenges that arise in a high quality service environment.  By keeping in mind the underlying principle of service-based leadership – of providing the necessary tools, training, resources, and support to key constituents – Controllers should offer targeted outreach assistance to managers; particularly to department heads – those key individuals with bottom line responsibilities.

Outreach services include:

Ensuring that department heads have clear accounting guidance:  Written accounting standards, policies, and procedures should be available to all managers.  While Club Resources International has produced and offers a great many of these, detailed procedural guidance should be prepared and implemented at the club level.

Assisting department heads with club-required programs:  Department heads may need assistance with benchmarking spreadsheets, Tools to Beat Budget, Annual Budgeting, and preparing for monthly meetings to review financial performance.

Providing timely operating data:  Those with bottom line responsibility have need for timely information about their operations.  The two most important are Weekly Revenue Reports and Pay Period Summary Reports that allow managers to monitor their revenues and their single largest expense – payroll.

Ongoing training on accounting issues:  In any complex operation there is the need for ongoing refresher training on key matters.  Staff turnover and the constant focus on daily operations sometimes make it difficult for managers to keep accounting issues foremost in mind.  Controllers should monitor departmental compliance with accounting policies and provide refresher training for arising issues and ongoing problems.

Making periodic visits to department heads:  These visits, based on the premise of  “How can I help you,” “Is there anything the Accounting Department can do to assist,” or “Your department seems to struggle with timely inventories.  Is there anything we can do to help?”  When coupled with a service-based attitude, such visits will go a long way in improving accounting processes while building a positive team spirit among managers.

Conducting an accounting audit of each department:  This annual check-up should be conducted with an attitude of helping department heads.  A simple checklist of important accounting considerations will provide both the department head and the Controller with a guide to identify and address areas needing improvement.  After the audit is completed, the Controller should work with the department head to draw up a plan of action to address any issues or concerns.

While the foregoing may sound like a lot of additional effort for the Controller, a club with a smooth functioning accounting process will usually perform better.  Additionally, many of the continuing irritations for the accounting staff arise from operating departments failing to meet accounting requirements in a timely and accurate manner.  These two benefits alone will make the Controller’s extra efforts well worthwhile.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.

Ten Disciplines That Will Transform Your Club

Tuesday, October 23rd, 2018

Arguably the greatest business book to appear in the last quarter century is Jim Collins’ Good to Great, Why Some Companies Make the Leap . . . and Others Don’t.  In preparation for the book the author and his research team identified and examined 11 publicly traded companies that significantly outperformed their competitors for a period of 15 or more years to find out what made them so successful.  The findings were sometimes surprising, often at odds with conventional wisdom, but definitive in that they were based on empirical evidence, not business theory.

One of the findings is that all Good to Great companies had a culture of discipline.  Quoting from the book:

“Much of the answer to the question of ‘good to great’ lies in the discipline to do whatever it takes to become the best within carefully selected arenas and then seek continual improvement in these.  It’s really just that simple.”

“A culture of discipline is not just about action.  It is about getting disciplined people who engage in disciplined thought and who then take disciplined action.”

Here are ten disciplines for the club industry that, when conscientiously and consistently applied, will revolutionize your operation.

  1. Service-Based Leadership.  Don’t assume that your management team has the necessary leadership skills.  Consistent, club-wide leadership is necessary to ensure that the General Manager’s vision is thoroughly implemented and consistently communicated to all employees.  To avoid dilution of core values managers must be trained to a common understanding and application of leadership.  Service-Based Leadership provides the example of service to all employees and creates the environment for employee empowerment.
  2. Organizational Values and Culture of Service.  Every employee must be immersed in a consistently reinforced culture of service based on well-defined values.  Unless you establish the desired culture of service, one will arise on its own and invariably will be at odds with your vision.
  3. Benchmarking.  You can’t improve what you don’t measure.  All club departments must be benchmarked in detail.  These benchmarks will tell you far more about your operation than just whether or not you made a profit.
  4. Real Time Accounting.  The discipline of tracking your revenues and expenses in real time will focus the entire management team on meeting or exceeding budgets.  It will also make budgeting for future periods far easier and more accurate.
  5. Continual Process Improvement.  Never rest on your laurels.  Yesterday’s accomplishments may have been good enough for yesterday, but being the best requires never-ending effort.  Create a culture of continual process improvement to relentlessly pursue excellence.  Your mantra, like that of your members, must be “what have you done for me lately?”
  6. Disciplined Hiring and Screening for Success.  Turnover is prohibitively expensive in the people- and detail-intensive arena of club operations.  The discipline of hiring well and getting the right people in the right seats will lower your employee turnover rate.  Benchmark your turnover rate by department to continually analyze and improve performance in this critical area.
  7. Work Planning and Performance Review with Measurable Accountabilities.  To keep organizational development and progress coordinated and on track, every department head must have a work plan with specific tasks, timelines, and accomplishments.  These coupled with detailed departmental benchmarks will permit performance reviews to be based on measurable accountabilities instead of gut feel.  When the entire management team is held individually accountable, performance naturally improves.
  8. On the Go Training.  Training is a necessity in the people- and detail-intensive club business.  There is much for employees to know and master, but with tight budgets and a pressing schedule of operations it is often neglected.  One way to overcome this is to format essential training in small on-the-go sessions that can be taught in spare moments or pre-shift meetings.  When material is prepared this way, it becomes a matter of daily discipline to pull out and review essential material.  The final discipline is to keep track of all training sessions so that over time nothing is overlooked.
  9. Member Relationship Management.  Members are the life blood of your club.  How you and your staff interact with them is more important than anything else you do.  Your relationship with your members cannot be left to chance.  It must be managed as carefully as your budget and requires a formal plan and thorough training of employees.  In the final analysis, member relationship management will determine whether or not you meet your budget and your mission of exceeding member expectations.
  10. Employee Empowerment.  John Tschohl, founder of the Quality Service Institute, says “Without empowerment, an organization will never be a service leader.  Empowerment is the most critical skill an employee can master and a company can drive in order to lure and keep customers.”

Empowered employees are viewed as full-fledged partners in your quest for high levels of quality and service.  They are encouraged to think, act, and make decisions on their own based on guidelines you define, but they must fully sense the club’s commitment to such empowerment.  Simply saying that employees are empowered does not make it so.

Excellence in the service industry is neither easy to achieve nor commonly found.  It takes commitment and “the will to make it happen.”  Jim Collins says being great requires “disciplined people taking disciplined action” day in and day out in the face of any adversity.  But for those who choose to meet the challenge, the rewards are as great as the effort involved.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers – those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking managers throughout the country and around the world.