Posts Tagged ‘club operations’

Benchmarking

Wednesday, February 7th, 2018

Imagine two professional baseball teams.  One team measures every aspect of every player’s performance – the number of at bats; number of hits, walks, and strikeouts; batting averages against right- and left-handed pitchers; slugging averages; and fielding percentages.  They also measure each pitcher’s earned run average, number of base on balls, strikeouts, wild pitches; and so on.  The other team decides it’s too much trouble and keeps no statistics whatsoever.

These two teams will meet each other eighteen times a season.  While well matched in player talent, hustle, and desire, and though each team possesses competent management and coaching, one team dominates the other season after season.  Would anyone be surprised to discover which is the dominant team?

As everyone knows, this example is ludicrous because every baseball team measures players’ performance and uses this information to make crucial game decisions.  What is it that baseball managers understand that some club managers don’t seem to grasp?  The fact that everything in life follows patterns. When patterns are tracked and analyzed, they can be used to predict future performance and set goals.

Benchmarking, the act of measuring and analyzing operating performance, seeks to understand the patterns underlying a club’s operation.  Reasons to benchmark include:

  • Benchmarks can be used to establish performance goals for future operating periods.
  • Benchmarks help identify under-performance and best practices.
  • Benchmarks from past periods can make budgeting for future periods easier and far more accurate.
  • Tracking revenues and comparing them to historical benchmarks allows management to measure member response to products/services and new initiatives.
  • Benchmarks create the measurable accountabilities for each manager’s work plan.

The club’s monthly operating statements provide good basic information, but these summary numbers can mask troubling trends within the operation.  For instance, higher food revenues can be a result of less patronage, but each member spending more because of higher menu prices.  The manager is happy with the higher revenues, but is blissfully ignorant of declining clientele.

Benchmarking is best accomplished by department heads who have bottom line responsibility.  Most performance measures will fall into the following broad categories.

  • Revenues and expenses, both aggregate and by type
  • Inventories
  • Retail sales mix to determine buying patterns of members

Most of the raw data necessary to benchmark comes from point-of-sale (POS) reports.  Much of this lode of daily information gets looked at briefly by department heads or the accounting office and is then filed away, rarely to be seen again.  The real value of this information comes from tracking it over time to determine trends by day of week, week to week, month to month, and year to year.  This makes it necessary for managers to pull the information from POS reports and enter it into spreadsheet software.

A few caveats:

  • There are as many aspects of an operation to measure as time, resources, and ingenuity will allow. Focus on those most critical to one’s operation.
  • Data used in benchmarking must be defined and collected in a consistent manner.
  • When comparing data, always compare like to like.
  • Ensure benchmarks measure events with only one underlying variable.
  • Do not draw conclusions from too small a sample.  The larger the sample, the more accurate the conclusion.
  • When two pieces of data are compared to generate a benchmark, both a small sample size or extreme volatility in one or the other, can skew the resultant benchmark.

Benchmarking is not complicated, but it does require discipline and persistence.  It is best accomplished by setting up routine systems to collect, compile, report, and analyze the information collected.  Like a baseball team, the knowledge gained by benchmarking will bring a club to the top of its game.

Thanks and have a great day!

Ed Rehkopf

This blog comments on and discusses the club 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 club managers throughout the country and around the world.

A Discipline of Planning

Monday, January 22nd, 2018

Managing a club without a plan is like driving through a strange land without a road map.  Given the size, complexity, and money invested in making a club successful, why would anyone consider operating it by the seat of one’s pants?  Yet, this is exactly what managers do when they fail to establish a discipline of formal planning.  And make no mistake about it, it is a discipline – requiring managers and supervisors at all levels to conceive and document their plans for upcoming periods and specific events.  It also requires that the General Manager review all planning documents, as well as review progress toward completing those plans on an ongoing basis.

Every enterprise demands a plan.  Without a formal, written plan to focus attention and action upon the completion of specified goals within a specified time period, the club will lack clear direction and purpose.  By putting plans in writing, the responsible manager formally commits to its accomplishment.  Further, there is a common understanding on the part of both the subordinate manager and the General Manager of what will happen and when.  Often, the planning and execution of one department will impact other departments or the club as a whole.  Written plans ensure that all managers and department heads are fully informed about where the club is going and when things are supposed to happen.  Taking all this into account, planning is not a luxury, but a necessity for efficient operations.

Types of Plans.  Planning is necessary on many levels and in many settings.  Formally, the club should have the following:

  • A Club Annual Plan covering a period of 12 months, coinciding with the budgeting cycle.  This plan lays out the specific goals to be accomplished during the year as part of the club’s efforts toward continual improvement.
  • A General Manager’s Work Plan for the 12 months covered by the Club Annual Plan.  This plan lays out measurable accountabilities for the General Manager and is the basis the GM’s performance appraisal.
  • Departmental Plans for the 12 months covered by the Club Annual Plan.  These plans lay out the goals and objectives of each operating department.
  • A Work Plan for each Department Head for the same 12 months.  These plans do the same for the club’s department heads.
  • Plans for major project and events.  These are plans developed for specific major tasks or activities such as purchasing new golf carts, renovating a facility, or preparing for the Member-Guest Tournament.

Planning Tips.   Having gone through the planning process a number of times, I offer the following advice to all General Managers:

  • Start early.  Procrastination results in poor, disjointed planning.
  • Lay out the broad outlines of what the Board or GM wish to accomplish.  These outlines will impact the priorities and initiatives of the club’s operating departments.
  • Involve your staff.  The departmental plans must take into account the broader goals of the club, but will also include the plans and agendas of individual Department Heads.  Further, since no department works in isolation, one department’s plan may affect others – either materially or in the timing of events and accomplishments.
  • Challenge staff.  General Managers should explain the big picture of club direction and progress and then challenge Department Heads to work on specific initiatives within their departments, for example, implementing Benchmarking, setting up Tools to Beat Budget, reviewing departmental training material and plans, Continual Process Improvement.
  • Planning is a process.  No plan is completed after one pass.  Back and forth discussion between the General Manager and Department Heads and among the different departments will further refine plans insuring a well-integrated club plan.
  • Use planning as a team-building exercise.  Given the preceding tips, I encourage General Managers to use the annual planning process as a team-building process.  Call an early planning meeting with all Department Heads to lay out the purpose, process, and planning timeline.  Then establish a series of planning meetings at which each Department Head presents his or her plans to the rest of the management staff for input and feedback.  One Department Head’s ideas may spark others to similar accomplishment.  Encourage critical review of plans and challenge groups of Department Heads to work together to work on larger club or departmental initiatives.

When departmental plans are completed, General Managers must review them and incorporate the more significant items in the Annual Club Plan.  All this should be done in time to allow adequate review and feedback by the Board before the start of the budgeting process.

Lastly, plans must not be a one-time task not to be looked at again.  To be truly useful departmentals and the Club Annual Plan should be reviewed often.  I recommend a brief review of plans and accomplishments during the Monthly Review of Operating Statements.  This ongoing review and discussion of planning will ensure timely completion of tasks and keep the club on target to meet all of its Annual Goals.

Summary.  The importance of disciplined planning cannot be overstated.  Haphazard planning results in haphazard operations and equally haphazard performance.

Thanks and have a great day!

Ed Rehkopf

This blog comments on and discusses the club 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 club managers throughout the country and around the world.

Training

Monday, December 25th, 2017

All of us who work in this business understand that club operations are both people intensive and detail intensive. It takes a lot of employees to provide the requisite levels of service in a club and every aspect of service involves countless details. These two facts make detailed, ongoing training an absolute necessity for any successful operation.

Types of Training. There are a wide variety of topics that must be taught to both managers and employees to fully prepare them for their jobs.

1.  Leadership Development Training for managers and supervisors – designed to enhance consistent leadership skills, which are the driving force behind any successful endeavor.

2.  Organizational Systems Training such as HR and Accounting Standards, Policies, and Procedures for managers and supervisors – designed to teach the underlying organization and operational systems that permit the club to operate efficiently.

3.  Club Culture Training for all employees – designed to foster a thorough understanding of the club’s values and service ethic.

4.  Legal Compliance Training for managers, supervisors, and employees – designed to provide all required training in matters with legal implications for the club such as Equal Employment Opportunity, Fair Labor Standards Act, Sexual Harassment, Family Medical Leave, etc.

5.  Liability Abatement Training in such matters as Safety and HR for managers, supervisors, and employees-designed to limit the club’s liability exposure.

6.  Service Technique Training for employees – designed to give each employee the skill set necessary to perform his job and meet the club’s high standards of service.

Items 1 through 5 above should be developed by the club for consistency sake and provided club-wide; item 6 is specific to each department and should be developed and taught by individual department heads.

 

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

Eight Key Basics to Successfully Operating a Private Club

Sunday, November 26th, 2017

The club industry is facing difficult times and while we are all facing challenges, each club faces its own particular problems.  As is usually the case when facing difficulties, this is the time to get back to the basics of our business.  Here are 8 things each club should examine:

1.  Leadership.  Clubs need clear-sighted individuals to guide them through tough times – but not just at the top.  They need strong leaders at all levels of operations.  It’s also important that the leadership styles of club leaders at all levels are congruent.  Different leadership approaches can dilute or damage the General Manager’s service message when it’s not reinforced consistently by all managers and supervisors in both word and deed.

2.  Organizational values and culture of service.  Every employee needs to understand what, how, and why you do what you do.  The basics of what you stand for as an enterprise are of absolute importance.  Defining your values is only the first step.  They must be continually and consistently reinforced to all employees.

3.  Planning.  Haphazard planning results in haphazard operations and equally haphazard performance.  Your club should have a 3 – 5 year strategic plan focused on your competitive position in the marketplace.  The club should have an annual plan for what it expects to accomplish and the General Manager and all Department Heads should have detailed annual work plans.  As important, the requirements of work plans must involve measurable performance parameters.  Detailed benchmarking of all areas of the operation is the easiest and best way to do this.

4.  Benchmarks.  You need to understand the variables of business volume and average sale that underlie all of your revenues.  Without this knowledge you may be lulled by historical levels of revenue when they are actually made up of declining volume, but higher prices and fees.  Benchmarking in detail is also an excellent way to listen to what members are saying with their buying habits.

5.  Accountability.  The club business is too demanding not to hold individual managers accountable for results.  The performance of every manager and supervisor must be measured against their annual work plan and there must be consequences for failing to meet goals.  Poor performing managers degrade the efforts of the rest of the team and drive away good employees.

6.  Employee Turnover.  There is a high cost to turnover and it usually related directly to the quality of the club’s leadership at all levels.  It is particularly costly when you do a good job of training your people.  Do not become the minor league training ground for your competitors – both private clubs and local restaurants.

7.  Training.  There is much for employees to know in serving your members.  You cannot expect that your employees will inherently know what to do unless they are systematically and consistently trained.  Training gives your employees the knowledge and confidence they need.  Confident employees are more apt to engage your members and provide higher levels of service.

8.  Member feedback.  You need to understand what your members think about your club, the products and services it provides, and the service your employees render.  Surveys are an excellent tool to do this, but you must act on the information you receive in intelligent and thoughtful ways to make the most cost-effective decisions in satisfying wants and needs.

Getting back to the basics is a sure way to regain your footing during and after the current seismic shift taking place in our industry.  The good news is, and there’s always a silver lining, that the best leaders and their operations will inevitably rise to the top.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

Principles of Employee Relations

Monday, November 13th, 2017
We have spoken frequently about the importance of well-defined values in club operations.  None is more important that the manner in which we conduct our employee relations.  Here is a sample statement of those values.
1.  All employees will be treated with dignity and respect.

2.  We pledge to conduct our employee relations in an honest and straightforward way.  Any necessary criticism or counseling will be conducted in private in a constructive manner with the intention of instructing and correcting rather than blaming.

3.  Every employee contributes to the overall success of our operation.  The only difference among employees is their level of authority and responsibility.  Every employee is important.

4.  The great majority of people want to do their jobs well and take pride in their work.  When an employee fails, it is often a failure of management to properly train or communicate performance expectations.  In other words, we can’t expect employees to do something properly unless we have properly shown them how to do it.

5.  Employees have no idea what goals management has for them unless those goals are communicated.  They have a need and the right to know how their performance is contributing to the achievement of those goals.  Continuous feedback is essential.

6.  Management must make every practical effort to keep employees informed on matters concerning standards, policy, procedures, long range plans, projects, work conditions, and compensation and benefits.  An informed employee is a better employee.  Supervisors should be available at reasonable times to answer questions and hear employee concerns.

7.  Recognition is important to all of us.  If we have the authority to correct, we also have the responsibility to praise.  We cannot have one without the other.

8.  Every one of us has a responsibility to help our fellow employees.  We do not work alone.  Rather we work together for a common purpose.  We owe it to ourselves and everyone we work with to be personally pleasant and mutually supportive.  One unpleasant personality or negative, non-cooperative attitude can ruin the workplace for all of us.

9.  We must empower our employees through meaningful contribution, while striving to make our workplace interesting, challenging, and rewarding. We can do this only by involving employees in decision-making and continual process improvement.  The ideas and energy of our employees are truly the driving force behind any success we may achieve as an organization.

10.  Our workplace must also be pleasant, enjoyable, and even fun.  Too much of our lives are given to work for it to be viewed as a necessary drudgery.  Each employee is challenged to do everything possible within good taste and reason to make their workplace more enjoyable for us all.

When a leader make it clear to all in her organization how employee relations will be conducted, it reduces the problems created by inappropriate and inconsistent treatment by managers.  Just as children get mixed messages when their parents have different approaches to child rearing and discipline, club employees can suffer when their managers have different ways of dealing with staff.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

Value Your People

Sunday, October 22nd, 2017

In speaking of Employee Empowerment, business consultant Susan M. Heathfield said, “Your regard for people shines through in all of your actions and words. Your facial expression, your body language, and your words express what you are thinking about the people who report to you. Your goal is to demonstrate your appreciation for each person’s unique value.”

So what things should a leader do to demonstrate your regard for people “in all your actions and words”?

Know and use employee names.  Everyone likes to be recognized as an individual and be called by name.  Certainly your members do, and your employees do as well.  Introduce them to members, guests, and visitors, when appropriate.  Failing to do so implies they’re just part of the scenery instead of key contributors to the success of your club.

Learn about employees as individuals.  Get to know them, their life situations, their dreams and plans, their goals in life.  This does not mean you are to become their friends, but it does mean you have enough interest in them as individuals to try to understand their situation, their needs, and motivations.

Greet employees daily.  You should never fail to greet employees when your see them each day.  You don’t like to be ignored as if you were unimportant, and neither do they.

Share your time with employees.  As busy as you are, make time for your employees.  They have questions, concerns, and needs that should never be ignored.  Be open and approachable.  When you are not, when they are afraid to come to you for fear of your reaction, you are kept in the dark about what is really going on in your team.  If any employee is monopolizing your time or is a “high maintenance” employee, do not be shy about letting him know the inappropriateness of this behavior.

Recognize each person’s strengths and weaknesses.  None of us is the perfect employee, manager, server, cart attendant, etc.  Don’t expect your employees to be.  Learn each person’s strengths and weakness.  Capitalize on the strengths and help each person overcome their weaknesses.  The time you invest in helping an employee develop his or her skills and abilities is well worth the effort and will be appreciated far more than you’ll ever realize.

Be involved in the workplace and work processes.  Do not create a hostile work environment by failing to adequately engage with your employees.  Without your ongoing guidance and direction, petty dissensions and friction will grow among the workers of your team as they struggle to figure out who must do what.

Look out for your peoples’ welfare.  Make sure your employees get adequate work breaks, that their workspaces are set up for comfort and efficiency, that they are properly trained and equipped for their jobs, that you adjust work schedules when possible to meet individual needs, that you resolve pay discrepancies quickly, that you get back to them to resolve issues they’ve raised.  Make sure they understand their benefits, taking the time to explain the details to them.

Treat employees as adults.  When you treat employees like children, they will act like children.  Don’t talk down to them or treat them as if they’re immature.  When you give people responsibility, most will reward your trust.  Those that demonstrate they can’t be trusted should be encouraged to move on.

Show respect.  This is critically important in the way you speak, the tone of your voice, your choice of words, and your body language.  Your respect for others cannot be faked.  You must sincerely value people to treat them with respect at all times.

Do not take advantage of people.  Employees are not your servants and should not be expected to perform personal services for you.  If you delegate tasks, make sure there is value in it for them, either in enhanced compensation or a genuine learning opportunity.

Thank employees often.  How easy is it to say “Thank you”?  It costs nothing and it reaps great rewards.  The only requirement is that it must be sincerely given.

Say goodbye at the end of the day or shift.  A farewell is a common courtesy that you would extend to family and friends, if for no other reason than as an acknowledgement of departure.  The members of your work team, who you depend upon for your success, should receive no less a courtesy.  Again, the need for sincerity is absolute.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

The Many Ways to “Kill” Employee Empowerment

Saturday, October 14th, 2017

We have spoken before about the importance of creating a culture that promotes Employee Empowerment at your club.  We quoted from John Tschohl, President of the Service Quality Institute, who said, “Without empowerment, an organization will never be a service leader.”  Mr. Tschohl went on to say that, “Empowerment is the most critical skill an employee can master and a company can drive in order to lure and keep customers.”

quote1-2Given the importance of empowering your employees, it’s helpful to understand the many ways to destroy such empowerment and that none of them are caused by employees.  If your employees do not feel empowered, look no further than your leadership and the way you interact with your people.  In searching for reasons empowerment isn’t working, focus on the following:

You are only paying lip service to empowerment.  Without your sincere commitment to your employees and their success, they will recognize your “empowerment” as a sham and will become more cynical and disaffected the more you try to encourage their “empowerment.”

You don’t really understand what empowerment is.  If you fail to realize that empowerment begins and ends with your leadership, if you think that empowerment is something your employees have to create, expecting your employees to act in empowered ways is a waste of time and energy.

You haven’t provided the “big picture” context of what your organization is trying to achieve.  Your employees need to understand how their contribution furthers the basic aims of the organization.  Defining and sharing your values and goals is a first step.

You’ve failed to give your employees the information and training they need to understand the context and scope of their empowerment.  When you ask them to take on additional responsibilities as empowered employees, they need to understand why and what the benefits are to them as well as to you and the club.  They will also need examples of what empowered behavior is.  Lastly, they will need to know that they will not be blamed or punished for making mistakes.

You’ve given them guidelines, but then micromanage them.  Maybe you’ve done a good job of defining limits, but then micromanage them.  When you do this they will quickly understand that they are not “empowered” and that you will continue to make all the decisions, no matter how trivial.

You second guess the decisions you’ve authorized your employees to make.  After giving your employees the guidelines to make empowered decisions, you second guess and criticize every decision they make.  Put yourself in their shoes; how long would you put up with this before throwing in the towel on “employee empowerment”?

You have failed to give feedback on how your empowered employees are doing.  Feedback, particularly early on, is critical so that employees understand by constant discussion and explanation what they are doing right and what can be improved on.  Once they achieve a critical mass of understanding, they will feel more and more confident of their actions, will need less guidance, and will be looking for more and more ways to contribute.

You have failed to value your employees.  Without the most basic sense that they are valued and recognized as partners in your efforts to provide quality and service to members, they will recognize that your program of “empowerment” is just a way to manipulate them.  People who think they are being manipulated are resentful and will be unresponsive to your continued exhortations to be “empowered.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

Service Breakdown: A Failure of Leadership

Tuesday, October 3rd, 2017

After thirty-five plus years in the hospitality business in both hotels and private clubs, I can state categorically that poor service comes from poor leadership.  Show me an operation with poor, shoddy, inconsistent service, and I’ll show you an organization with a failure of leadership.  This observation flows from the understanding that leaders who recognize service problems in their organization will take corrective action.  They will establish a plan of action, set priorities, lead employees to execute the plan, and follow through to completion.

Why, then, is poor service so often the rule rather than the exception?  I have met many competent, hard-working, and professional general managers who voiced a clear and unequivocal service vision for their operations.  They understood the need for well-defined standards, thorough training of employees, and constant reinforcement of service ideals within their organizations.  Yet, they struggle to establish and maintain high standards of service.  While we all recognize the many demands on our time, the challenge of employee turnover, the training burden in a detail-intensive business, time constraints, and ever-present budget pressures, these are not the root problem.

In examining this challenge that never seems to go away, I believe I have discovered the most significant source of the problem – the lack of well developed and consistent leadership skills among subordinate managers, those who direct the day-to-day activities of the operation’s line employees.  While the general manager may clearly understand and articulate the requirements of service, unless that “gospel” is communicated faithfully, consistently, and continuously to line employees by their immediate supervisors, there is a breakdown in the service message.

Throughout my career I have inherited or hired front line supervisors whose background, experience, and education should have prepared them for the challenges they would face daily in our business.  While most had more than adequate technical skills to execute their responsibilities, they were often lacking in a critical aspect of leadership – how to direct and motivate employees to achieve high levels of quality and excellence.

While some front line supervisors demonstrated exceptional leadership skills, many did not.  Often my biggest problems were created by supervisors who did not treat their employees properly, who did not communicate expectations, and who did not seem to understand or follow the most basic requirements of leading or managing people.  These profound failings were crippling to the organization and required many hours of counseling, training, and, in some cases, terminations to remedy.

Over time I realized that any focus on training of line employees to smile and be friendly was a waste of time until I could be assured that supervisors developed basic leadership skills.  From that point on, I focused my efforts on training supervisors.  Regardless of background or education, I wanted them to learn to be effective leaders, to paint and preach a vision of excellence for their staff, establish goals, communicate expectations, provide support and training to their employees, and solve the inevitable problems that arise when people work in a service context.

The training called for a clear vision for hospitality operations and guiding principles that would shape our efforts.  I made it clear to supervisors that our employees were truly our most important resource, and they must be treated with dignity and respect.  Supervisors were told that their primary job was to provide direction, support, and training for their employees and that, based on their experience or education; I held them to a higher standard.  I also provided detailed guidance on how to develop line employees and correctly counsel and discipline when necessary.  Finally, I put a positive emphasis on communication and problem discovery.  In time these concepts were formalized into a leaders’ handbook which was issued to newly-hired supervisors.

How successful was I in achieving my ends?  I would frankly admit that the results were mixed.  While some supervisors responded positively, others seemed incapable or unwilling to grasp basic leadership principles.  These, typically, after much invested time and effort, were encouraged to take their talents elsewhere.  But on the whole, the effort yielded improved employee morale, lower turnover, better two-way communication, and a more upbeat team spirit among all staff.  We still struggled with budget and time constraints on training, but we were far better off than we would have been without the effort.

Consistency and high levels of service will always be a challenge in business.  Without competent and committed leaders at all levels, general managers will always be trying to “do it all.”  In time they will burn out or be forced to compromise their standards.  In either case the result is service breakdown.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

Service-Based Leadership

Saturday, September 23rd, 2017

Service-Based Leadership is the foundation for Remarkable Service.

Given that leading ultimately involves guiding, influencing, and directing people, I posit the following working definition for “Leadership”:

Leadership is the sum of those individual traits, skills, and abilities that allow one person to commit and direct the efforts of others toward the accomplishment of a particular objective.

Central to this definition is the understanding that exercising leadership involves building and sustaining relationships between leader and followers. Without this bond or connection, there are no willing followers and, therefore, no true leader. Given that no leader operates in a vacuum, it also requires that the leader establish relationships with other relevant constituencies.

With Service-Based Leadership, the attitude and primary motivation of the leader is service to others – to members, to employees, to shareholders. This approach to leadership naturally creates relationships – the deep and abiding bonds that sustain the efforts of the organization. This outward focus of the leader sets up a dynamic where:

  • Employees are continually recognized.
  • There is an open flow of ideas, opinions, and information.
  • Initiative and risk are highly regarded.
  • Problem discovery and solution is a focus while placing blame is unimportant.
  • Every employee feels energized and part of the team and is valued for his or her contribution.
  • Prestige is derived from performance and contribution, not title or position.
  • Members are treated well because employees are treated well.
  • The energy and initiative of all employees is focused on the common effort.

With Service-Based Leadership, you will find that service to both internal and external customers is effortless. Less energy is expended in processing complaints, grievances, and conflicts. Work is more fun and everyone’s job is easier.

The Service-Based Leader understands that the key to serving the needs of those he or she serves lies in ensuring that strong relationships are established with individuals. How does one do this? Begin by:

  • Treating everyone you meet with courtesy, respect, and good cheer.
  • Focusing on each person you deal with as if he or she were the most important person in the world.
  • Taking the time to get to know people; sharing your time and attention with them.
  • Learning about other people’s jobs and the challenges and difficulties they face.
  • Keeping promises and following through on commitments.
  • Being principled, showing fairness, and demonstrating integrity.
  • Recognizing the ultimate value of people in all you do.

Relationships depend upon how you view yourself in relation to others. If you see yourself as separate and apart from your constituencies, if you view others as the means to your end, if your vision and goals lack a broader purpose than your own needs and ambitions, establishing meaningful relationships will be impossible. On the other hand, when you see yourself as part of a team with a shared mission, then a sense of service will be an intrinsic part of your service team relationships.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.

A Culture of Service

Sunday, September 10th, 2017

We frequently talk about the importance of developing an organizational culture of service.  What exactly do we mean by an organizational culture?

The dictionary defines “culture” as the sum total of ways of living built up by a group of human beings and transmitted from one generation to another.  With a slight modification of this definition we come up with the following working definition of organizational culture.  The sum total ways of working and interacting built up by a group of people within an organization and transmitted from one generation of employees to another.

The major benefit of establishing an organizational culture is that once adopted by the majority of people in an organization the culture takes on a life of its own and permeates the workplace.  As normal turnover takes place, new hires quickly learn that to be accepted in their new surroundings, they must embrace the culture and make it their own.  In the absence of a culture developed and disseminated by the organization’s leadership, a culture will arise on its own, usually fostered by a vocal few and often cynical and at odds with the purpose of the organization.

So how do you create a culture in your organization?  First, you have to define clearly and succinctly the aims of your organization and what it aspires to be.  These are most often found in Mission and Vision Statements.  Beyond these basic statements of intent, one must clearly spell out standards of behavior and performance.  These can be in the form of Guiding Principles, Operating Standards, Leadership Principles, Service Ethic, Principles of Employee Relations, Organizational Values, Service Pocket Cards, a Code of Professional Ethics, or any other formal statements describing the “What, How’s, and Why’s” of how organizational business should be conducted.

Yet publishing such principles and statements, no matter how inspirational and well-written, will only foster employee cynicism if the values are not enthusiastically embraced by the organization’s leadership.  On the other hand, when leadership demonstrates their commitment to the organization’s values by their daily example, employees will do likewise.

With well-defined values and the enthusiastic example of leaders, the ground has been prepared for the fruits of organizational culture, but just as in growing a garden, preparing the soil is only the first step.  The real work for a successful harvest is the daily tending – watering, fertilizing, pruning, weeding, and pest control.  In the case of an organizational culture, it is daily reinforcement at every opportunity with all employees that continues to focus individual attention on the values that underlie everyone’s efforts.  In some cases, it’s publicly recognizing an employee for embracing and utilizing the values in their work relationships or service rendered to members.  In other cases, it’s privately correcting an employee who has ignored or transgressed the culture.  In extreme cases, it’s terminating the employee who refuses to accept the group norm.  The key is to continually remind employees of the organization’s values and elevate them from words on a page to an animating spirit that permeates every aspect of the organization and its work.

From the process of continually accentuating and reminding one achieves a breakthrough similar to that described in Jim Collins’ book, Good to Great.

Sustainable transformations follow a predictable pattern of buildup and breakthrough.  Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but with persistent pushing in a consistent direction over a long period of time, the flywheel builds momentum, eventually hitting a point of breakthrough.”

This breakthrough is reached when the organization achieves a critical mass of employee buy-in.  Though the process of establishing an organizational culture requires patience and persistence as well as leadership and example, when breakthrough is achieved, the culture takes over and is self-sustaining – with the employees holding the bar high and policing their own ranks.

In such an organization, employees understand what must be done and how.  Motivation and morale are sky-high as employees are empowered by their participation and contribution.  The leader, relieved of the burden of constantly following behind employees to ensure they are doing the right things, can focus on strategic issues and the future of the organization.

The importance of a well-defined and promoted organizational culture cannot be overemphasized or underestimated in its impact on quality, performance, and member service.  The only thing that can screw it up is for the leader to fail to show an ongoing interest or set an uncompromising example of the organizational culture and its values.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club 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 club managers throughout the country and around the world.