WIXLIB

Good governance can helpan organisation achieve: Funding from external organisations Better management of risks andchallenges as they arise More members as a result of deliveringa better service and being morein tune with member needs Better performance on the fairways as a resultof having the right structures in place to attracttalented players and allow them to flourish Sustainability for the future as a resultof being more attractive to funders andmembers, and having in place an appropriatestructure and proper financial systems tomanage investment and money across aclub rather than relying entirely on peopleWhy is governancerelevant for golf clubs?A golf club is run by an elected ManagementCommittee which has the responsibility tomake decisions that will benefit the membersand ensure a sustainable future for the club.The elected Management Committee has towork and interact well with different peoplesuch as paid staff, volunteers and members.Having in place good governance in terms ofprocesses, systems and practices will help toensure accountability of the elected ManagementCommittee and transparency of its actions tothe membership. It will also ensure that whilstoperating against the backdrop of a strugglingeconomy, processes are in place for maintainingeffective relationships and decision making to buildsustainability for the golf club going forwards.In many ways, golf clubs that work on theirgovernance will be ahead of the curveand put themselves in a strong position toface the ever-changing challenges that willemerge in the world we live in. These includeshifts in membership, changes to localgovernment policies, statutory obligationsand evolving communications platforms.Principles ofgood governanceIn the future we will be working across golforganisations to develop our own set ofprinciples of good governance for golf.These will build on the existing work in thesport sector by taking the principles set outfor all sports organisations and making themspecific and relevant for golf organisations.It is useful for golf clubs to be awareof the principles of good governanceadhered to across the sports sector.These are set out in the Sport & RecreationalAlliance Voluntary Code of GoodGovernance which is available ntary-code-of-good-governanceThe Voluntary Code was designed toenable sport and recreation organisationsto aspire to and maintain good governance.It is a tool to help Boards perform their roleby outlining seven simple principles.9

The principles are listed below with a short explanation:1. Integrity:Acting as guardians of the sport, recreation, activity or area.Management Committee members to uphold the highest standardsof integrity in the Board room but also throughout the environmentof the sport. This could include developing the following: Safeguarding Policy Equality, Diversity and Inclusion Policy Anti-Doping Policy Gifts and Hospitality Policy Conflicts of Interest Policy Discipline and Grievances Policy Whistleblowing Policy2. Defining and evaluatingthe role of the Board:Management Committee members need to have clear roledescriptions and an understanding of their individual and collectiveroles. They should also evaluate their collective and individualcontributions and performance for the organisation. This couldinclude developing the following: Clear Role Descriptions Codes of Conduct Skills Matrixes Committee Evaluation3. Delivery of vision,mission and purpose:The organisation should have a clear high level strategy and visionprovided by the Management Committee. The ManagementCommittee should not be involved in operational delivery. This couldinclude developing the following: Strategic Plan Operational Plan Budget and Forecast10

4. Objectivity:Balanced, inclusive and skilled Board. The ManagementCommittee should be made up of the right balance ofskills and expertise to meet the needs of the organisation.This includes the need for independent expertise andfor representation of the diversity of the sport.This could include: Independent Committee Member role descriptions Rules to allow for open recruitment and diversity in roles5. Standards, systemsand controls:The organisation needs to have standard operating proceduresand ensure there are appropriate and effective controls over theorganisation. This could include developing the following: Risk Management Policy Schedules of Delegated Authority Financial Policies and Procedures6. Accountabilityand transparency:Being open and accountable to members ensures an organisationcan stand up to scrutiny when reasonably questioned.This could include developing the following: Communication Policy Strategy for managing and communicating minutes ofmeetings appropriately7. Understanding andengaging with thesporting landscape:Being aware of the international and domestic sporting world toensure all decisions are taken in an informed and measured way,having looked externally as well as internally for the best solution.11

Section Two:Organisational StructureThe typical structure for any golf club will depend on the size of its membershipand the income it generates.Larger clubs may have a General Managerto manage the day-to-day operations of theclub. The General Manager is the de factoCEO and is responsible for the recruitmentand management of the employees, under thedirection of the Management Committee.Smaller clubs will rely on their volunteerofficers within the Management Committeeto manage the day-to-day activities ofthe club. The types of management andtheir benefits are set out in Tool 2.A Management Committee’s role is to governthe organisation on behalf of its members.The committee will be the Board of Directorsin an incorporated club or act as a Board ofDirectors in the case of unincorporated clubs.At a club’s AGM, the voting club membersappoint the Management Committee. Ifthe club is incorporated these individualsare the Directors of the Company and sowill be elected by the membership.Beyond the appointments of theManagement Committee, a club whetherit is incorporated or not, will likely want toappoint individuals into either Sub-committeesof the Management Committee, workinggroups or into operational committees.The three different types of committees/groups are outlined below:Sub-committees:May be established by the ManagementCommittee to oversee elements of thestrategy and assist in strategic issues. Theywill have an oversight function and will not beresponsible for doing the work of a club.12They are sub-groups of the main ManagementCommittee. Membership of the Subcommittees will include members of theManagement Committee but independentmembers may also be appointed intothe Sub-committees by the ManagementCommittee, to assist and offer expertise.Sub-committees will report and be accountableto the Management Committee.Working Groups:May be established for short term projects bythe Management Committee. These are similarto Sub-committees to the extent that theManagement Committee can determine themembership of the working group and the groupis accountable to the Management Committee.However, unlike a Sub-committee, a workinggroup is established to deliver against a specificproject or need for the club, for a specifiedperiod of time. After the project is complete,the working group will not continue to meet orexist. Working groups can be helpful becausethey enable clubs to engage people withrelevant skills for specific projects, withouthaving lots of long standing Sub-committeeswithout a defined ongoing role or input.Operational Committees:May be established by the General Manager toassist them in running the operational aspectsof the club. These committees will do the workof the club and implement the strategy.Membership of the operational committees caninclude Management Committee members, butit is likely these committees will be made up ofother people who are appointed to specific rolesby the General Manager to deliver specific jobs.

If the individuals appointed to the operationalcommittees are Management Committeemembers then they must be aware that theyhave a dual function for the club. Their roleon an operational committee is to implementand do the work, as opposed to their roleon the Management Committee, which is toover-see the work. Operational committeeswill report to the General Manager.What is the legalstructure of your club?Here is a list of thedifferent legal structures: Incorporated (companies Ltd by Guarantee) Unincorporated Registered Society Registered CharityCommittee members can apply the assetsof the club to discharge any liabilityarising from those proceedings.If the assets of the club are insufficientto fully discharge the liability then, inthe case of unincorporated bodies,the Management Committee could bepersonally liable for any shortfall.This risk of having to pay liabilities out of theirown assets seems an unfair burden on volunteers.Whilst the club constitution should provide theManagement Committee with an indemnityfrom the members and appropriate insuranceshould be put in place, there are likely to beincidents potentially not covered by insuranceand clubs should consider incorporationto gain the benefit of limited liability.The benefits and disadvantages of incorporatedand unincorporated bodies are set out in Tool 1.Optimum Structure Incorporated CharityTop Tip: Clubs are highly advised toincorporate to get the benefits of limitedliability and this is particularly important wherethey hold land and employ staff.Legal LiabilityMany clubs are choosing to incorporateas a legal corporation e.g. company.Incorporating an organisation as a companylimited by guarantee is attractive becauseit limits the liability faced by directors(officers) in the case of insolvency (not incases of negligence or recklessness).The optimum structure brings together allmembers of the club working towards a commongoal i.e. the success of the club. It is imperativethat the long-term plan is communicated andunderstood by all, with the structures, policies,and procedures in place to ensure the goals withinthe plan are attained. Such a structure shouldrecognise the various elements of a club andfacilitate those responsible for specific areas tofocus on specific roles.The focus of the Management Committee is to setthe strategic direction of the club and to delegateday-to-day responsibility for operational deliveryto the General Manager.If the club is unincorporated, should an eventoccur where the club is being sued, theManagement Committee members tend to be thenamed defendants as well as potentially trustees,as the club does not exist as a legal entity.13

Fig 1:MembersManagement Committee 1 Chair plus 5 - 9 members Senior Staff (non-voting)General ManagerStaff Clubhouse, Bar andCateringClub (Operational)Committees Greens Admin Club ProfessionalRole of Senior Staff inManagement CommitteemeetingsIt is also important to involve the senior staffin management committee meetings, albeitin a non-voting capacity, as their expertisecan be called upon to inform decisionmaking. It is also likely to generate a greatersense of partnership and co-operation.See Tool 5 for a Case Study which showsthe benefits of involving senior staff inManagement Committee meetings.14Sub-Committees & WorkingGroups

Section Three:Management CommitteeWhat is the role of aManagement Committee?A club’s success is largely down to the workof its Management Committee and Subcommittees. Sub-committees exist to makestrategic and policy decisions to ensure theclub can be run effectively and sustainably.To help achieve this, the Management Committeeand all Sub-committees should have: Clear terms of reference to define their purpose Skills-based role descriptors to ensureindividuals with relevant expertisecan be deployed to key areas ofdecision-making structures Policies and procedures to support asmooth and transparent operationCommittee and transparent communicationbetween each Sub-committeeThe role of the Management Committee is broad,but some key areas of responsibility are set out inthe Terms of Reference in Tool 3.Top Tip: The majority of the terms of referenceshould come from the club constitution. Wheregaps are identified to ensure the effectivemanagement of the golf club, amendmentsto the club constitution may be required.Role within theManagement CommitteeRoles descriptors should be used to: Appoint a skills-based Management Committee Provide clarity to members on their functionsSub-committees may be created by theManagement Committee to assist themin carrying out their duties, so they areextensions of the committee and report to it.Top Tip: Sub-committees should not haveauthority over management of staff and shouldbe appointed with clear terms of referenceand to deliver against clear objectives. Outline the expectations of the rolesThe Management Committee maycontain some or all of these roles:1. Chairperson2. Secretary3. General ManagerTerms of reference4. Treasurer5. Directors or TrusteesTo create an effective structure,the Management Committee andeach Sub-committee must haveclear terms of reference which: Clarify the committee’s purpose and activities6. President – if Presidents are ambassadors, theymay not necessarily be full voting members7. Additional rolesappointed volunteers, Sub-committee Chairs Set out the membership of the committeeand how members are appointedSample role descriptors for ManagementCommittee representatives are set out in Tool 4. Define the limits of authorityon spend and activitiesIn the past many clubs have had the ClubCaptain or both the Men’s Captain and Ladies’Captain on the Management Committee aswell as the Chair of House, Chair of Greensand the Junior Organiser or Captain. Outline the roles and responsibilities Include reporting frameworks that ensurethere is sound oversight by the Management15

Thinking Point: Clubs should really determinewhether the functions of these positions shouldbe involved in the strategic and policy decisionsto ensure the club can be run effectively andsustainably.Their roles may be better performed in Subcommittees of the Management Committeelooking at those specific important areas thatmight not be appropriate for the Board to look atin detail.Suitable Sub-committees where these roles andpositions could sit may include, member liaison;handicap and competitions; or communications.Conversely these roles may sit more appropriatelyin operational committees reporting to the GeneralManager where they are delivering and doing thework of the club. Integrity and confidentiality - keep inconfidence the issues, discussions andactions of the Management Committee Working knowledge of golf and ofgolf governing bodies, includingpolicies and procedures Understanding of collective responsibilityWays of WorkingAn effective management committee is onethat adopts the following good practice: Has an elected Chairperson Implements a robust induction programmeand offers educational opportunitiesSkills-Based Selection Works from a well-documentedstrategic plan and set of financialsIn order to effectively fulfil the dutiesand responsibilities of the ManagementCommittee, representatives must be soughtout and selected based on their skill set. Implements a clear set of corepolicies and proceduresDetailed role descriptors and a nominationscommittee that adequately reflects theexisting and potential membership willenable the best opportunity to drawtalent from all sections of the club. Schedules a minimum of five managementcommittee meetings a year Has an audit and risk committee, including atleast one external and independent accountant Undertakes an annual committee performanceevaluation involving external inputIn addition, each representative, regardless ofrole, requires the following key competencies: Manages a staggered rotation system witha minimum/maximum term of office Listening skills – in order to understand eachother’s perspectives and aid healthy debate Embraces a diverse nominationscommittee to identify and attractrepresentatives based on skill Communication skills – oral and written,enabling clear, concise and constructivecommunication, especially in meetings Analytical skills – the ability to preparefor meetings by understanding the keyissues and asking constructive questions Demonstration of club values – lead byexample with the values and leadershipbehaviours visible to staff, members and visitors16

Section Four:Strategic PlanningWhy is it important tohave strategic plan?Elected club leaders who change on a regularbasis may result in inconsistency in the leadershipof a golf club. This may in turn, dependingon the election term for individuals, resultin a transient management committee.Having a strategic plan in place can help tosafeguard the priorities of a club by providinga consistent common objective that allelected Management Committee membersneed to work continuously towards.This new consistency will help the club focusits resources in the areas identified by themembership as key priorities for the club, andwill get individuals acting on their own viewsrather than on agreed common core objectives.Having a strategic plan will help set out aplan for achieving success. The future successof the club will not be judged by the size ofthe document produced, but will be judgedby the results that the plan generates.How to create a meaningfulstrategic plan?The process of creating a strategic plan is gearedup to establish answers to three core questions:1. Where are we now?2. Where are we going?A wider perspective of a club’s position in thelocal marketplace can be taken by evaluatingthe relative strengths and price comparisonswith clubs in a 20-mile radius, and nationalgoverning bodies have tools that can assistclubs understand their potential customers intheir locality. You should contact your nationalorganisation for access to these tools.Other business-like tools such as SWOT or PESTLEcan be used to help frame discussions with as widea group of stakeholders as possible. (See glossaryfor information about SWOT and PESTLE tools).The start of a strategic planning process isan ideal time to engage the full membershipin a survey. Further analysis can be hugelymeaningful within a members’ forum, to whichall members are invited to offer their viewson the strengths and weaknesses of the clubright now. Gaining such a mandate from thestakeholders/members is crucial in remainingloyal to the established direction of the club.From each of the steps involved in thisanalysis will emerge a clear picture of whatmakes a club special, and this can be referredto in the plan as the core purpose, or

Board Directors/Management Committee/Trustees/ Executive Committee This can be called a number of different things but when this guide refers to a management committee it means the strategic decision-making non-executive function at the top of the golf club. Core Values An organisation's core values are the guiding principles which apply