CINO - Chief Innovation Officier Application

My last article, 'Are Industry Leaders Paralyzing Country Club Innovation?', garnered a lot of attention and direct messages of support from former and current industry colleagues showing their appreciation. My next "Jerry McGuire" moment will focus on innovators' role, or lack thereof, in all of the industry's major players. Have you ever wondered where ideas stem from, or the process that Boards, Executive Committees, or mega-management firms go through when implementing a significant capital plan? For example, how did a new boutique firm win two awards for an 80s-inspired speakeasy based on the cult classic, Roadhouse? The answer seems relatively easy --with a lack of fear, strategic approach, and knowledgeable experience within other hospitality fields. Pretty safe to say, there isn't another 'Double Deuce' in another Club within the USA. 

Building a company focused on innovation, and changing the mindset of an industry paralyzed by “ivory tower” syndrome, is a daunting task; but it’s something I've embraced with open arms. When I mentioned our approach to a prominent industry ‘leader’, i.e., the Country Club traditionalist which comprises 99% of the industry, he laughed, joked, rolled his eyes, and shot down the idea. I'm pretty confident he wouldn't be laughing at the additional $400k in annual F & B revenue, 100+ additional Social Members, and an increase in Private Event booking (during a pandemic), all with a $210k investment. My point? The industry is looking at the future through the wrong lens, and hence why I am submitting my application for 'CINO - Chief Innovation Officer', for the Country Club industry, metaphorically speaking… 

Definition -- A Chief Innovation Officer (CINO) is the designated person in a company who is primarily responsible for managing the process of innovation in an organization and being, in some cases, the person who originates new ideas, but also recognizes innovative ideas generated by other people – both internally and externally.The CINO is responsible for managing the organization's innovation process that identifies strategies, business opportunities, and new technologies, and then develops new capabilities and architectures with partners, new business models, and new industry structures to serve those opportunities. The CINO should focus on breakthrough innovation. Successful Innovative Officers concentrate on delivering the critical principles behind innovation – leadership, creating networks, harnessing idea development, leveraging the right incentives, and building/managing an effective, transparent and efficient innovation process. 

 Now, ask yourself a question, which of the largest management companies, or the smaller firms with significant Private Equity backing, currently has the role of Chief Innovation Officer? ClubCorp? Arcis? Kemper Sports? Troon? Heritage Golf Group? I'm not talking about a Chief Marketing Officer, Chief Technology Officer, or Chief Investment Officer. I am looking for a dedicated 'Innovation' leader position whose primary focus is generating forward-thinking ideas that truly push the envelope beyond tracer-range technology, simulators, or a fitness facility. Someone who looks at all departments and can find unique opportunities in ALL aspects of the club -- Golf, Food and Beverage, other amenities, employee culture, and compensation -- basically an all-encompassing 360-degree approach. Among the firms listed above, they oversee 1000+ golf and country clubs, and thousands of employees, without a dedicated role or focus on innovation. In most cases, innovation is driven by an executive committee of former golf pros (nothing against golf pros ??), a design firm they feel 'comfortable' with based on previous experience, or tenured employees from within the fold who 'want' to be innovative but are fearful their idea may fall flat; i.e., not taking a risk for fear of losing their job. However, it isn't as scary as it sounds. How many Chefs, Golf Directors, General Managers, and F & B leaders have had meaningful and collaborative meetings with their company leaders? How many people have been 'forced' to embrace capital plans shoved down their throat, with the expectation to hit their ROI targets generated by a CFO or CEO? We all know the result if you don't hit the 'expected targets' for which you didn't have input.  

 Are you the CINO of your Club or company but aren't allowed to thrive? 

Most recently, I read about a newer golf management firm and their $4m capital plan for a new club they acquired. Now, I applaud any company for significant investment into a club that will support employees, members, and their local community. Still, I was intrigued by what was mentioned in the article. Yes, investment into course improvements is always essential. But, after reading the tea leaves, I didn't see any 'innovation' beyond the standard approach, which circles back to my previous article, 'Are Industry Leaders Paralyzing Country Club Innovation?’ and this article, 'Where Is Their CINO?' The article didn't separate the firm's management team or approach from anyone else’s. The standard approach is an updated dining and private event facility, fitness, simulators, and maybe adding pickleball (insert eye roll). Yes, all are most likely needed; however, you'd hope the facility would add some truly unique features that would separate it, and them, from other players in the industry for FOUR MILLION DOLLARS. Give me $4M, and I'll build you the ultimate Adult Playground of Country Clubs! 

 Perhaps I am a little jealous thinking about what we could create with $4M+, and knowing I'm swimming upstream in an industry run by 5 or 6 of the same players. Writing these articles is my version of therapy. To all the Golf Pros, F & B Leaders, General Managers, Tennis Directors, and Membership Directors, who feel frustrated, stagnant, or not heard, whose compensation is archaic and not structured to motivate both sides, don't be afraid to take some strategic risks! If you have an idea, present a detailed plan with an ROI pro forma, a process, and why you think it will work. If your company's leaders don't respond, or dismiss it, maybe it's time to take a risk and move to a place where people truly appreciate you. Or, perhaps, you might be pleasantly surprised -- but don't give up! 

 Most recently, we created our $0 Cost Club Management platform, which raised some eyebrows. Third-party management firms have always taken monthly and upfront fees, regardless of the club's financial performance. So I asked the question, how can we change the model to ensure the client is first? The answer aligns the club's or owners' best interests with our own, and we base our fees purely on the clubs' growth and financial performance, resulting in ICM being the first to create the platform. 

 Innovative Club Management (ICM) was born out of the frustration from working for two of the largest owner/operators in the industry and their lack of innovation for fresh ideas. On the back of a napkin, I asked one question, "What if…". What if we approached it this way? What if we created this type of amenity? and so on… I've heard from dozens of industry colleagues who vent that they aren't heard, are tired of the 'grind', and want to believe in the direction of their company. I've dealt with derogatory comments from large management firm leaders, and repeatedly heard, "Alex, it's too hard" or "Your approach won't work" or, my favorite, "Come back and join us again”.

 Since taking the plunge to start ICM, I've added one club under the fold, consulted for many, achieved unprecedented results for our client, attempted to acquire two large golf portfolios and a small cluster from another company, joined the Gary Player group, opened and closed a restaurant, and had 2 clubs under a Purchase and Sale Agreement, both of which fell short of the finish line. The purpose of enumerating the list of accomplishments, regardless of the result, is to drive the 'never give up' point home. Yes, it's a cliché, but when you genuinely believe in something, it becomes a passion that makes it easier to ride the waves of disappointment but keeps you getting back up and fighting. My passion? To continue to be a voice for an industry that refuses to change, while notching little 'wins' that prove we are on the right path. If you're frustrated, annoyed, stagnant, or not heard, reach out and let's chat. We are more than willing to help colleagues regardless of the situation. 

 The future is bright, and with COVID bringing a lot of focus to our industry, I wouldn't be surprised to see the role of Chief Innovation Officer - CINO created and posted by one of the mega-management firms in the coming months…