First Principles
BoardRoom magazine
Educating the private club industry for over 28 years. Replace Emotion with Fact.
Needing philosophy.
Every club is guided by philosophy—basic ideas, foundational beliefs, first principles underpinning the culture and directing decision-making.
Clubs that do “success right” know their first principles and live their philosophy. In doing so, they attract and retain members, energize staff and prosper financially.
A set of core values, first principles, a guiding philosophy guide successful clubs whether the clubs are yacht clubs, golf clubs, country clubs, city clubs or beach clubs.
These success principles, these macro “must do’s” are broken down into three categories: values, people and things.
The first of the first principles: Values
Value No. 1: A marketing mentality?
Great clubs understand the marketing imperative: “Find out what they want, then give it to them.” Surveys, town hall meetings, committee discussions, hallway conversations, letters to the president provide a deeper understanding of wants. ?
Value No. 2: Enthusiasm for a clearly defined mission statement
The mission statement is the core philosophy of the club, the guiding light for the board and manager. The best mission statements are short, pithy, focused, easy to remember, a “sexy saving” that tells the membership, the staff and the world, “This is us and this is what we spend the big bucks doing.”?
A concise mission statement tells people what to expect, clarifies the brand, guides the board when making strategic decisions and is the road map the GM uses when making tactical decisions consistent with the club’s vision.
Value No. 3: Exclusivity and privacy?
Great clubs nurture their exclusivity, privacy and sense of community. No club is all things to all people. Knowing who’s right for the culture and its values—and who isn’t—is critical for long-term “community coherence.”
Value No. 4: Equity thinking among members and staff?
People treat things differently when they own something. Members and staff with “equity thinking” have an emotional connection to and care for their club. It distinguishes them from “renters,” “day users” and “fly-by-nighters.”
Value No. 5: Club service?
Club service does ground zero right—the “stuff” is delivered effectively and efficiently—but adds club by delivering the stuff with personality, with a relationship and with comments and insights that enlarge and enrich the “delivery experience.”
The second of the first principles: People?
People No. 1: Club sense among members and staff?
Club sense is all about right behavior in a particular club. Successful clubs have staff and members who understand right behavior at the club, behave accordingly and appreciate that club sense binds them together into a coherent community of members and staff.
People No. 2: Fun
People join clubs to escape from the madness of modernity. They want to be entertained, they want to smile, they want to feel joy and laughter. ?
The best clubs have a sense of humor evident in the hallways and the locker rooms, in the casual discourse between members, management and employees.? ?
People No. 3: Continuity?
Longtime, big-time successful clubs have low turnover regarding membership, management and staff. Continuity is prized.?
People No. 4: Big like?
In successful clubs, there’s a genuine “big like” all around—members like staff, staff like members, both like the manager and the manager likes everyone, including the board and committees.? ?
People No. 5: Good governance
Successful clubs govern “right.” The board makes policy but accepts mentoring by the manager, committees give advice to the board and get mentored by the manager, and the manager administers board policies and accepts mentoring from the board. ?
People No. 6: Accountability
Members and staff of successful clubs are well aware of who’s accountable for policy and administrative decisions.
People No. 7: Access to those who are accountable
Decision makers are known, available, easy to locate and are inviting and approachable once found.
People No. 8: Responsiveness from those who are accountable?
When someone raises policy or administrative issues, those who are accountable act, address the issues quickly, correct the problems once identified and explain their actions or inaction in detail.
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People No. 9: Bonding opportunities?
People who have unique group experiences, who share special moments, feel bonded as a community in a special way. Successful clubs generate lots of collective moments—at the macro level for the entire membership and at the micro level for niche markets within the community.
The third of the first principles: Things
Thing No. 1: Goods, services, facilities appropriate to the wants, needs and expectations of the membership?
Successful clubs know what their members want and focus on, invest in and provide the goods, services and facilities appropriate to those wants.
Thing No. 2: Quality equal to and beyond member expectations
Quality is a moving target, and a given club’s “standard of excellence” is related to the expectations of the membership. These expectations are driven by education, affluence, travel and the benchmarks being used by the general membership.
Great clubs know the level of quality expected by their members and are committed to delivering that quality and more.
Thing No. 3: Quality that is delivered consistently?
Successful clubs deliver the quality expected consistently over time.
Thing No. 4: Value for the quality received?
Value is paying the right price for the quality received.
Value isn’t about cheap. Value is about delivering an experience that’s greater than the price being paid. Successful clubs price the right quality right.
Thing No. 5: Attention to the details?
Details matter because people draw big conclusions from the details they see and experience. People see philosophy in the details, and the best clubs pay attention to the details.
Thing No. 6: Aesthetic alignment?
Successful clubs make sure that the aesthetics of the club—the look, the feel, the sound, the smell—are appropriate to the “wants” of the membership and are consistently applied to ensure that “decorative coherence” is achieved.
Thing No. 7: Brand recognition?
A brand is a symbol of the culture, something that tells a story and says, “This is us.” Successful clubs have symbols that dramatize their story, and they use these symbols in marketing, during visits and to provoke conversation.
Thing No. 8: Community spaces and places ?
Successful clubs are designed with lots of “places and spaces” that provide opportunities for members to see each other, be together and acknowledge, if only at the subconscious level, that they’re all part of this special community called club: the lobby, the bar, the grill, the living room, the pro shop.
Thing No. 9: Money
Lastly, the finance committee would say firstly that the club needs to deliver the big three—values, people and stuff—cost-effectively with the least expenditure of time, money and resources.
Successful clubs cover current expenses with dues and fund depreciation, and they have an “aspirational capital fund” for future “wants” and “improvements.”
Start philosophizing?
Talk philosophy. Identify and discuss your club’s first principles. ?
Conduct a first principles audit. Identify what’s getting done or needs doing.
Determine best practices for translating those first principles into reality. And while you’re pondering and doing, enjoy the journey. ?
Gregg Patterson is founder and president of Tribal Magic.?He can be reached via email: [email protected]
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