Why Do They Golf?

The theme of this newsletter stems from my desire to bring back insights from my travels with the wealthy to the masses. This particular story serves as a message to my younger self, who often wondered, “Why do they golf?”

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Story Time:

When I was 14, a buddy convinced me to ride my bike to a country club to work as caddies. I had never been inside a country club, never heard the term “caddy,” and was only vaguely familiar with golf. We made the 40-minute bike ride, arrived, and stood around all day, hoping someone would choose us to carry their clubs for 18 holes. We weren’t picked on the first day but were encouraged by watching some of the other kids end the day with cash in their pockets. The next morning, we woke up earlier to face less competition for our services, and we finally got a job. We spent 3.5 hours walking up and down hills, on grass and concrete, raking sand pits, and pulling flags out after putts. At the end of it, one of the gentlemen handed us two $10 bills, and we were thrilled. I barely had the money in my pocket before my mind started calculating how much I could make that summer if I could secure 2-3 jobs per day.

It turns out a caddy who knew nothing about golf was not in high demand at the country club. For the next three days, I made the trip back and forth without being selected even once. By the following week, I retired from caddying and, from that point forward, considered golf a game that rich people played but didn’t care to understand why.

?Robin of The Hood note:

My buddy continued going to the golf course. Meanwhile, I secured a work permit and got some part-time hours at a fast food place. I laughed at him every time I brought home a weekly check that exceeded what he made in two weeks. Four years later, the CEO of a local energy company wrote a reference letter for his favorite caddy at his alma mater and covered his tuition for the first year. That was my buddy. I, on the other hand, learned how to dress burgers (Red, White, and Green; Ketchup, Mayo, Pickles; Tomato, Onions, Lettuce). It turns out hanging around the country club had some networking benefits that didn’t exist at my fast food job.

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Why do they (business leaders, rich people, politicians) play golf?

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Golf is a cheat code for creating a captive audience of credentialed people with whom to network. An average round of golf takes just under 4 hours. Asking a busy executive for a 4-hour meeting is a fools errand. Merely requesting it will almost assure that you will never get the opportunity to make such a outrageous request again. However, asking for a round of golf secures the same 4-hour timeslot without being labeled outrageous by anyone. This leads to the question of why an executive would accept a request to play a round of golf.

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Networking and Relationships:

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One of the most significant aspects of golf is the networking opportunity it provides. On the green, business and pleasure mix seamlessly. Deals are made, partnerships are forged, and strategic conversations happen in a relaxed, open environment that the typical boardroom cannot replicate. This aspect of golf isn’t just for the elite; anyone can leverage golf as a networking tool to foster relationships and open doors professionally.

Robin of The Hood note:

There are close to 10,000 private golf country clubs in America. To become a member, you are required to pay an initiation fee and then monthly membership dues. The price of the fee and dues serves as a vetting tool. Even if you don’t know anything about your fellow country club member, you know they had the ability to pay the initiation fee. The higher the fee, the higher the bar for who can actually join the club. If the initiation fee is $2,000, that narrows the pool of people in the club to people who can afford that amount. Raise the fee to $200,000, it’s a whole other set of people. In the most prestigious clubs, it doesn’t matter if you can raise the required money for the fee because the bylaws include that you have to get existing members to write letters on your behalf supporting your candidacy for membership. So, before saying a single word to a new person you meet at your club, you already know they are the type of person with access to cash for initiation fees and dues, PLUS they have access to a bunch of other people like this in their network to get the referral letters. So, when you network at your country club, you already know the kinds of people you will be networking with on the course. The more you can pay, the more exclusive the people and connections.

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Strategic Insights from the Green:

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Golf is a strategist’s game. It teaches patience, planning, and the importance of precise execution. Each stroke requires careful consideration regarding distance, wind, and terrain, much like the strategic decisions one makes in life and business. This analytical approach to playing can help anyone improve their decision-making skills, teaching the balance between risk and reward. How well do you deal with distractions?

The serene settings of most golf courses offer a perfect escape to nature, contributing to mental and physical well-being. It’s a chance to disconnect from the hustle and bustle of daily life and spend a few hours in green, open spaces.

In the middle of all that natural beauty and trying to close the biggest deal of your life, you still need to lock in and focus on each shot. Your ability (or inability) to focus tells a lot about your ability to focus on tasks at work once we consummate this deal. Are you the kind of person that is easily distracted, or can you block out the distractions (ignore the big money I just paid you) and focus on the task at hand (and deliver the service you promised)?

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Recognizing and Dealing with Sunk Costs:

Each shot that you take is important in getting you to your destination, but it’s also over once it’s done. If you hit two iconic golf shots in a row and land on the green in two, neither of those shots has anything at all to do with how well or poorly you are about to putt. Those initial two shots are sunk costs. Good or bad, it has literally zero to do with what happens on your next shot.

In business, it’s not usually the bad decisions/strategies that sink people. It’s usually the inability to course-correct after it's clear that the previous decisions were poor. In my world, I hear people doubling and tripling down on a deployment that is over budget and underperforming on the basis of "we have already spent so much money."

Robin of The Hood Note: It doesn’t matter how much money/time you have invested in a business or idea. The only thing that matters is whether or not it makes sense going forward. The moment you are basing your decision on what happened already (see: your previous golf shots), you are not recognizing sunk costs.

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Dealing with Adversity and Prosperity:

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All golfers, professionals and amateurs alike, hit bad shots during a round. After hitting a bad shot, the very best golfers in the world do not carry that baggage into their next shot. Can you keep your composure after a bad shot or two? Can you avoid overconfidence after a few good shots? Golf informs me how you are going to deal with the ups and downs of our business relationship.

You restart your stroke count for every new hole, but the scores from the other holes continue to stay with you. An all-time low score (Lower scores are better in golf. -1 means you made it in the hole in one less stroke than expected; +1 means it took you one more stroke than expected) through 17 holes of golf can be totally ruined on the 18th and final hole if you go way over par. Over 4 hours, I can see how you deal with the ups and downs.

Do you let a bad start bleed over into your next task? Do you obsess over the tasks completed flawlessly or the tasks completed poorly? Do you curse and throw your clubs when you make a bad shot? Do you take responsibility for poor play, or do you blame the environment? Are you genuinely happy for the success of a friend when you aren’t playing well? There are so many opportunities to expose your problem-solving skills, your ability to communicate effectively, your personality, and your work ethic… It’s all there!

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Illumination of Character:

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For the most part, golf rounds do not have officials, and the rules/scoring are self-enforced. This allows for plenty of opportunities to cheat or cut corners. Do you write a 4 down on your scorecard when it really took you 5 strokes? Do you reposition your ball to a better spot without taking a penalty stroke? Golf exposes character. I have seen people lie to themselves when they are the only person keeping track of their score!

Golf offers more than just a leisurely pursuit—it opens doors to deeper insights into human nature, strategy, and character, all played out over 18 holes. Each round offers a unique perspective not just on a person's ability to play, but on how they approach life and business challenges. So, the next time you're on the green, remember, it's not just about the game, it's about understanding the nuances of human interactions and making every shot count in the game of life and business.