> STEVEN’S MESSAGE
someone who has become a good friend. While visiting The Desert Mountain Club in Carefree Arizona, I spent time with Bob Jones, my counterpart at DMC. DMC is a residential club, also with six golf courses. They went through a controversial (and expensive) transition
thinks more like customers, they complain about most expenditures, resist any cost increases or assessments, care only about the impact on themselves, and consistently seek to let the next generation “pay for it.” They rarely care about the elements of the club they may not use.
from developer-owned to member-owned, driven by the Great Recession. An issue Bob lamented about was that the membership of DMC still seemed to believe the club was a “they” or “them” as if still owned and operated by a developer. Bob was the first club manager I heard use the phrase “developer hangover” but I have since heard others use the phrase to describe the same phenomenon. It is a common characteristic of residential clubs with a history of developer ownership and eventual transition member
It doesn’t take rocket science to see that a club’s culture can impact its economics. While no ownership culture clubs can (and often do) overspend and get the club into a financial hole, the customer culture can avoid even the most necessary investments to a point where (like the old “pay me now or pay me later” commercial) the club declines past the point of no return. This is often how clubs become housing developments. ‘ How important is a club’s culture? Pretty darned important! It not only determines the atmosphere and appropriate target market for a club, but also has tremendous impact on the club’s economics and its prospects for success, often
“The idea is that it takes time for members to embrace the idea that they are the club, that they legally own the club and therefore, their responsibility to act in their best interests of the club — to do the things that protect and sustain the institution.” — Steven Freund, Executive Director
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ownership. The idea is that it takes time for members to embrace the idea that they are the club, that they legally own the club and therefore, it is their responsibility to act in their best interests of the club — to do the things that protect and sustain the institution. It was this idea along with the strong encouragement of Tim Lindgren (2013 Club President) that moved us to change the name of our club magazine from Club Line to Our Club . A CLUB’S CULTURE So, what’s the point of addressing and thinking of members as “member-owners” and what’s the difference? Larry Hirsh said it better than I can paraphrase — I think it best to quote him directly. Those memberships that take ownership in their club (regardless of whether the membership owns it or an investor) are typically inclined to improve the club, pay for enhancements and access, have pride in their club, consider the future membership and take good care of the golf course and other facilities (replace divots, rake bunkers and fix ball marks). They are usually respectful and courteous to staff and management. Conversely, at clubs where the membership
being the difference between joining one club versus another. The physical quality of a club is critical, but a reputation for having the wrong culture for the prospective member can be deadly. WHAT MEMBER-OWNER IS I share this to clarify what we mean by addressing our membership as “member- owners.” The preceding text could lead some to think that we are critical of our membership, as if we are implying that our members think more like customers. That is not the case. We are seeking to affirm a truth we believe exists at The Landings Club and to preserve and strengthen our culture. As Larry Hirsh noted, a club’s culture is “pretty darned important” — I believe you can argue that it is a vital determinant of a club’s long- term viability. But like so many things that matter, it can take years or decades to build a strong culture and a fraction of that time to destroy it. Our reference to members as “members-owners” has a fourfold purpose:
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