Jeff McFadden, Recipient of the John Fornaro Impact Award for 2021
BoardRoom magazine
Educating the private club industry for over 28 years. Replace Emotion with Fact.
Occasionally, we cross paths with an exceptional person who, intentionally or not, leaves an indelible mark on everything they touch or do!
In a few words, that describes Jeff McFadden , eminent leader of The Union League of Philadelphia , PA, a city club that ranks as one of the world’s finest private clubs. And as the chief executive officer of this exalted BoardRoom Distinguished Clubs , McFadden is receiving due recognition as the recipient of the John Fornaro Impact Award for 2021.
The award recognizes leaders in the club industry annually.?
“These are people who demonstrate strong business skills and creative approaches, a willingness to take risks, engage others and who face ambiguity with enthusiasm,” expressed BoardRoom’s publisher and CEO John Fornaro in recognizing McFadden’s many contributions to the private club industry.
“They also demonstrate innovation and we believe this is a significant characteristic of Jeff’s contribution to the industry as he continues to transform traditional practices through innovative member experiences.”?
Jeff has led the Union League on a remarkable comeback over the last 25 years, growing the League into the premier lifestyle regional club in the Philadelphia marketplace. However, he is most proud of what he has given back in supporting and growing the private club industry.?
A thoughtful, somewhat risk-taking CEO, McFadden and his management team, along with a distinguished board of directors, have taken extraordinary steps during his long tenure at the Union League. Of course, all of this revolves around what the League’s 4,300 members want!
“I’m fortunate to have been leading the League for 24 years and all of our success has been to our management team, which has an average tenure of over 18 years. We make accidental brilliance happen,” McFadden expressed.
“We work well together; we also believe we completely understand the underlying dynamics of the member of tomorrow, but ironically what we know today is obsolete tomorrow, so we must continue to learn and improve each day.?
“The concept of building the best regional lifestyle club in the country came out of our management team’s understanding of the member of the future. Fifty years ago, if you were a sailor and yacht club member, which is most of what you did with your free time, you sailed and surrounded yourself with others who sailed.?
“In today’s world, a member could buy a sailboat, sail around the world, sell the sailboat and never sail again! The member of tomorrow wants even more choices, different types of dining, more friends, better quality in everything and ultimately, truly differentiated and authentic experiences,” McFadden added.
“We built our model one brick at a time, from the parking garage to our little seashore dining option 88 miles from the League House to our three large and expansive golf and country club operations. It certainly wasn’t an overnight success.?
“We have a long-term strategic plan, of which many components I will never see. However, our plan will never end; it will continue to evolve and get better. For example, we see a major wellness anti-aging facility, a downtown residential component connected to the League, as well as a hunting and fishing mountain type club in the future,” he predicted.?
“When these will happen is anyone’s guess. We do not force an opportunity; we just keep looking for the right opportunities to enhance the League and the experiences we provide while at the same time reinvesting in our current facilities. Our latest $25 million rooftop dining space will be the best in the country when it opens Thanksgiving 2023.
“We’re celebrating our 160th anniversary this year and are one of the oldest clubs in the country. Our sustainability as measured economically, socially, and environmentally is really important. Our motto ‘Love of Country Leads’ represents everything important to us in sustaining our great nation in every way,” McFadden articulated.
So, how does the League’s CEO define success in the private club world? What are the markers?
“You can only define success in two ways 1) membership satisfaction levels and 2) successful fiduciary stewardship. You must always grow membership satisfaction, add amenities and stay relevant in today’s club market,” he said.
“Your granddaughter’s club of the future will be much different than your grandfather’s club. Your grandfather probably had five close friends, and your granddaughter is going to have over 500 friends, so the way members use clubs in the future will change; and how you service their needs and wants will determine your ability to drive member satisfaction.?
“Right now, one of our 14 dining outlets is producing 4.89 out of 5.0 satisfaction scores. However, we will continue to drive improvement in that outlet even though there is little more we can do based upon the members’ satisfaction level,” he offered.
“Fiduciary responsibility is a big part of a successful club. Clubs need to continue to reinvest and grow. Are your dues growing? Are you growing membership, entrance fees and new amenities? The old days of just maintaining a good club are over – you will have to overachieve to be successful and keep your club performing at a top-notch level. The tide is rising all around us, and you will eventually drown if all you are doing is treading water,” McFadden cautioned.
So, how do McFadden and his cohorts seek member feedback and how is this incorporated into your club operations and planning process?
“We measure everything and ask for feedback on every three transactions at the League. Our management team is judged on member satisfaction scores. We review feedback and our membership scores at weekly meetings,” he explained.
“We analyze data to ensure we are capturing a higher percentage of hospitality wallet spend of our members. If our members are spending their hospitality dollars down the street and not at the League, we look at ways to capture those dollars and grow. In the end, what gets measured gets improved!
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“Clubs are going to be just fine after COVID. However, we may see some drag on participation in golf as the world returns to normal and there may be a bit of a lull from the ‘golf covid-high.’?
“However, data shows we should be able to maintain 35 percent of the new golfers who took up golf during COVID. I’m also a big believer in the data that shows younger folks will continue to move into urban environments, so I am very bullish on city clubs,” he predicted.
“Our membership has grown to just over 4,300 members and we have 360 prospective members who have been posted for membership. We will grow the membership to about 5,000 total members. We believe this is a sweet spot as a private regional club with six locations. All of our golf courses have long waiting lists.?
“Our philosophy has been measured and managed growth, as we only grow our membership by about 100 net every year. Our admission process is still very rigorous requiring six sponsors and four letters of support. As a result, our attrition rate is only three percent, which is less than half the average city club,” McFadden offered.”
So, what’s McFadden’s motivation as The League’s CEO and his personal life?
“My main motivation is building and seeing something through. I get great personal satisfaction by completing major projects and simple tasks. I do not really work, as I totally enjoy how I spend each day, even if it’s an 18-hour day at the League.?
“We have an expression at the League that we tell members every day; ‘The answer is yes, now ask me the question.’ The power of taking ‘no’ off the table is really liberating. It’s not that we can always get there, but the ‘attitude of yes’ is worth it!” he exclaimed.
“I don’t see a difference in success in my professional and personal life. I am big about ‘work-life integration’, not about ‘work-life balance.’ So if I’m stressed in my professional life or stressed in my personal life, it makes no difference! I see my career and personal life as one; it is who I am.?
“Yes, I often need to take more time at home, or sometimes more time at one of our locations than others, but that’s life. No matter how much balance you have, we all have just 24 hours in the day. So, whether you are doing personal things or professional tasks, you better enjoy every one of them. If I don’t like doing something, I actually stop doing it or better yet, delegate it!” The League’s CEO opined.
“I’ve had lots of mentors in my 30-plus years in club management. Within the club industry, Al Armstrong was a terrific mentor from the University Club of DC. He showed me the effects of positive thinking and making robust changes within your club! Paul Astbury from Jonathan Club and Ocean Reef taught me the finer things in life as a great hotelier!”
And, of course, McFadden offers ideas to share with younger general managers.
“I often tell young ‘soon-to-be general managers’ that after they find out how the best clubs in the country operate, then go out and find the best underperforming club in the country. Put your mark on it, and turn it around.
“It’s great to be at a BoardRoom Distinguished Club. However, I believe it’s better to create the most Distinguished Club in America!
“Of greatest satisfaction to me and I think to most is the ability to make change and succeed with your ideas with input and intelligence from others. At the League, our best ideas come from others; we just put them all together and make them better! McFadden shared.
“The major thing younger managers can do is to continue to beat the drum that change is the only constant in life. Even though our boards are becoming more diverse and somewhat younger, we are still an industry dominated by older males who think the future is 20 years ago.
“Abraham Lincoln said, ‘Education is like a road map, you don’t need it if you are not going anywhere.’?
“We must continue to educate our boards on the future. We tagged the line “Building Your Granddaughter’s Club” as the name of our long-term strategic plan. It has multiple meanings but emphasizes that we always must be thinking of the future,” he emphasized.
However, he is most proud of what he has given back in supporting and growing the private club industry.?
Not only has he grown the League from 200 employees to over 1,400 employees, but he has also helped shape the club management profession as a very noble hospitality career. In the early 2000s, Jeff founded the Philadelphia Club Foundation to help all club managers obtain their CCM by awarding scholarships to continual educational sessions such as the BMI programs given by CMAA.?
The Foundation has grown in scope over the last 20 years to include tuition and scholarship support for all professions in the club industry, such as grounds crew, culinary folks and golf professionals. The Foundation has also funded over 50 Make A Wish? wishes through the local Make-A-Wish Philadelphia, Delaware & Susquehanna Valley Chapter.
Jeff has also served as the president of the Philadelphia CMAA, is chair of the National Club Association Foundation, and worked with numerous club industry think tanks. Jeff is determined to make club management the career of choice for those in hospitality!?
And McFadden still finds time for fun stuff!
“I’m still engaged in lots of outside activities. I continue to fly and serve on the Board of Wings Field, which is right next to where we live in Blue Bell, PA. In addition, I’m fully committed to serving the law-abiding center city community as an executive committee member of the Philadelphia Police Foundation.?
“And last year, we bought a boat and I found out I still love to water ski and getting thrown off a tube at 35 mph!” ?BR
Medical Device Sales
2 年Great work Jeff!
General Manager at Palos Verdes Golf Club
2 年Congrats Jeff! Certainly none better than you and the cream always rises to the top, love it!
Bay View Business Advisors| Growth and Value Optimization Strategies, Turn Around Expertise, Funding Alternatives, Process Improvement, Executive Coaching
2 年Strategic Excellence delivered year after year during often challenging circumstances and environments! Bravo!
St. Martins GM & CFO at Philadelphia Cricket Club | Board Member
2 年Congratulations Jeff McFadden! Well deserved!
Jeff, it has been incredible to watch you grow our club with such foresight and grace. Thank you for all you have done for The Union League. Congratulations