CDIssue25-10_Training

JANUARY 2010
The Official Magazine for the Club Directors Institute CLUBDIRECTOR
The delicate
question
of whether
to budget
for director
training.

2
CONTENTS
GOVERNANCE 3 The Delicate Question of Whether to Budget for Director Training
7 The Importance of Finance Training
STRATEGY 9 Stand Up for the Service Revolution
VISION 12 What’s Your Motivation
PRODUCT 15 Sourcing Wine for Your Club
GOVERNANCE 17 Common Errors Made During Director Foundation Training
Club Director is proudly
supported by Pigott Stinson.
ClubsNSW celebrates International Women’s Day by
recognising the important roles that women play in clubs
– as members, volunteers and employees.
Business professional, Jen Dalitz, presents Serious
Success Strategies which targets women and men who
not only want to get ahead in their vocations but are
also concerned with creating a female-friendly work
environment. Jen is a farmer, author and a new mum to
baby Ethan and she understands the unique challenges
and competing demands that working women face.
CLUB DIRECTOR, Issue 25, January 2010
Copyright in this document is vested in Club Directors Institute (CDI) or the original author.
Use by members of the Club Directors Institute as part of the CDI program is permitted. No
other use, citation, reproduction or publication (in whole or in part) is permitted without the
prior written consent of CDI.
Publishers
ClubsNSW, Level 8, 51 Druitt St, Sydney 2000
phone 02 9268 3000
Executive Manager Member Services
and Marketing: Anne Fitzgerald
Editor: Shayne Leslie
Design & DTP: John Hewitt
Thanks to …
Catherine DeVyre
& Malcolm Stopp.
International Women’s Day
Business Breakfast
9.30am-11.30am, Wednesday, 10 March 2010 at Revesby Workers Club.
proudly sponsored by
International Women’s Day Business Breakfast is supported by:
Prices Early bird (up to 17 February) $65 p/person (Individual)
$50 p/person (Group of 5 or more)
Standard $80 p/person (Individual)
$65 p/person (Group of 5 or more)
Menu (served to your table)
Eggs Benedict with grilled tomatoes and side of sautéed
mushroom, selection of yoghurts, seasonal fruit platter
and variety of breads and condiments.
Jen was VERY well received by our
audience and one of our most popular
speakers this year. We all left feeling
very empowered and positive!
Emily Jerome, Member Events
CPA Australia Ltd
Enquiries: Scott Tutton
stutton@clubsnsw.com.au
or 02 9268 3023.

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THE DELICATE QUESTION OF WHETHER TO BUDGET FOR
DIRECTOR TRAINING
COMMON FEARS ABOUT TRAINING:
Capacity building
First is the concept that training is elitist, selfish,
and contributes nothing to the community. This
concept of training is wrong. As Peter Newell,
Chairman of ClubsNSW states, “Directors have
every right to training and the first port-of-call
is the Club Directors Institute (CDI).” Training
builds the capacity of board members as a group.
A board member may serve one year or 20; that’s
not important. It is the quality of that time that is
important and quality is attained through the board
member ’s depth and currency of skill. The only
way to attain quality depth and currency is through
structured training.
Return on investment
Secondly is the notion that directors will receive
training and abruptly depart the board leaving
no return on the investment. Well, that’s life, but
it shouldn’t mean you punish your club by not
training those who stay. Lack of skill on boards
and management teams act as a brake on your
club’s ability to prosper. There is an absolute truth
that investment in people at all levels is one of the
requirements of a thriving business.
“When clubs plan their strategy they place the
welfare of their entire organisation in the hands of
just a few individuals,” says Julian Moore, Director,
by Shayne Leslie, Member Services Manager, ClubsNSW
Strategic Membership Solutions. “It is imperative
that these people have the skills to be able to make
educated and informed decisions. Regular training
is essential for this to occur.” Julian contends that
anyone with a budget of less than $1,500 per person
per annum needs to take a “long, hard look at
whether they are providing their key individuals
with the information required to take their club to
the next level.”
Capacity building and return on investment in
themselves provide an important rationale for
undertaking training. However, the key is that
training has to be perceived as critical to a club’s
health and future prospects.
Club Land is different
I’ve met many in the club industry who are
educated and intelligent, successful in their own
businesses, savvy and committed to service. Yet even
directors who have served on boards for 15 years
or more can get it wrong if they get out of touch.
The highly regulated and unique social context
of registered clubs cannot be understood without
constant and close inspection. It is a different world
to corporate land and a different world to trades;
that’s why it is often referred to as ‘Club Land’ as it
really is different to anything else in the world.
So, how do we go about setting the budget for
director training? And how much is enough? Let’s
u
Finding the dollars in the budget for director training can be
pretty tough when your club isn’t too keen on the concept of
training. Let’s start by getting a few primal fears about training
out of the way so we can begin to solve the dilemma.

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look, initially, at what training is and what it is
supposed to do.
Training as a tool - not a treat
Training is a problem-solving tool. It’s about
looking at the current and future situation at your
club and asking questions:
• What problems are the board facing at the
moment?
• What problems may the board face as we
pursue our business initiatives for this year?
Mostly, you will be able to group the answers under
the headings of governance, finance, strategy, risk,
leadership, and communication.
Follow these questions with:
• What skill is critical to the business problems of
today?
• What skills will we need in the future to realise
our initiatives and ensure a prosperous club?
The answers to these questions create a training
plan that is linked to business outcomes. Next, you
can set about looking at who is qualified to provide
the training and how much will it cost.
Providers of training
There are many providers of education but few
specialise in club governance. ClubsNSW Corporate
Partners such as KPMG, Russell Corporate
Advisory, and Pigott Stinson have, at times,
presented to directors on different facets of board
operation. Any of these partners could deliver
board training within their specialist area.
Registered Training Organisations (RTOs), such
as Statewide Business Training and South-West
Sydney Institute of TAFE, have had a long history
of training within the club environment, usually
with management and general staff. One difficulty
with RTOs is they can only deliver training to their
registered ‘scope’, and quite often that doesn’t
include governance. Management modules yes, but
not often specifically for boards. There are other
organisations such as the Australian Institute of
Community Practice and Governance (AICPG) who
offer non-specialist training in governance.
IPART, however, suggested that ClubsNSW was
the best placed organisation to deliver training to
club boards, and that’s what we’ve been doing for
some time now (information on the Certificate IV in
Governance was covered in 2009 July Club Director).
What you are paying for
When you look at the training fee, I am sure many
people regard it as expensive – in Australia we are
very used to free or heavily subsidised education.
But when you break it down you can start to
appreciate the investment. What you are actually
paying for is:
1. Research and development of the course
content (for example, it has taken 2 years to
get the Director Foundation and Management
Collaboration course to the quality it is now)
2. Quality of the content of the course (generic,
specialised, custom written)
3. Quality of the trainer (experience,
specialisation, qualification) if choosing face-to-face
4. Online development if choosing online
5. Intellectual property
6. Materials (workbooks), marketing and
administration
7. Catering, venue costs, travel and
accommodation.
On top of this is a slim profit margin to make a
viable business for the operator.
Decide if you would like your training recognised
with a qualification. For example, individuals can
complete the Director Foundation and Management
Collaboration course either online ($128pp) or face
to face (from $495pp) and receive a statement of
completion. However, to receive an accreditation
means completing and submitting extra work to the
Canberra Institute of Technology (CIT) and this is
an extra $400.
When paying for accreditation you are paying for:
8. Development of assessment materials
9. Validation of course and assessment materials

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Example: CUT ROCK CREEK CLUB TRAINING BUDGET FOR DIRECTORS IN 2010
u
10. Marking the assessment and issuing the
certificate indicating your qualification.
So you can see there is much more to training
than someone turning up with a Powerpoint
presentation and a white board pen!
If you want a consultant such as KPMG or Russell
Corporate Advisory to deliver your training then
you need to expect to pay consultant rates. You’re
paying for their depth of specialisation within
their field, be it finance, governance or strategy. It
could be anywhere from $2,000 to $5,000 a day plus
expenses.
RTOs may encourage you to complete a related
qualification so you can secure government
funding and they can deliver training that has
already been written. Government funding is
available for qualifications such as the Diploma
of Management. The qualification doesn’t include
specific governance modules but it will equip a
board member with a variety of excellent skills
and may be attractive to younger board members.
Unfortunately, there is no funding available (or
in sight) for either governance or volunteers.
Again, call your local RTO or TAFE and ask what is
available.
ClubsNSW has been able to price online learning
very competitively as CDI contributed to the
investment. Face to face is priced as low as possible.
However, some courses, such as Finance for Club
Boards, require specialised trainers and this is
reflected in the costs (see the table on CDI website
for overall costs for courses and accreditation).
Down to the dollars
Let’s say that the board from the Cut Rock Creek
Club has answered the questions and has asked me
for advice. I am going to be biased here and suggest
ClubsNSW training (see table below).
The important thing is to budget for director
training. Your club needs its board to be as highly
skilled as possible; training isn’t a treat – it’s a
necessity for your club’s future.
Questions Problems at Cut Rock Creek Club
What problems are
the board facing at the
moment?
• Board meetings spent arguing too much on basic governance
• Conflicting views on laws and procedures
• Not sure how to manage the CEO and assess performance
• Only one person on the board understands what is happening in the finances
What problems may the
board face as we pursue
our business initiatives
for this year?
• Competition from other local clubs stealing our ideas
• No overarching strategy for the club
• Succession planning issues – most of our directors are 65+ and are looking to retire within
two years
• Need to attract a more diversified board
Questions Suggested course Budget
What skill is critical to
• Governance
1. ClubsNSW Director Foundation and
the business problems
• Finance
Management Collaboration online
of today?
2. ClubsNSW Finance for Club Boards online
$128 pp
Free in 2010
(for CDI)
What skills will we need
in the future to realise
our initiatives and ensure
a prosperous club?
• Strategic planning
• Marketing
3. ClubsNSW Strategic Planning online
then …
4. ClubsNSW Strategic Planning face-to-face
5. ClubsNSW Annual Conference
$128 pp
$495 pp
$595 pp
TOTAL $1,346 pp

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THE STATISTICS ON DIRECTOR TRAINING EXPENDITURE
We recently asked in an online survey, how much does your club usually budget annually for
director training? The responses were not encouraging. 14% of clubs didn’t budget enough for
director training while 21% budgeted nothing at all! That’s 35% of club directors not getting
sufficient education to ensure prosperous and sustainable clubs – roughly 490 clubs. A further
13% were not sure how much they should budget. There is more money budgeted for floor staff
training than there is on people who create the strategy for the club – the board of directors – and
implement the strategy – line managers. Thankfully, there were 41% of clubs who did budget well
for director training. Please make sure, moving forward, your club is one of them!
HIGH ACHIEVERS: DIRECTOR FOUNDATION CLASS 2009
Armidale City Bowling Club Chris Brodbeck 100%
Armidale City Bowling Club Steve Swain 100%
Bankstown Sports Club Mark Condi 100%
Club Five Dock Sam Sleeman 100%
Euston Bowling & Recreation Club Ltd Garry Stoll 100%
Murwillumbah Services Memorial Club Ltd Chris
Chrisostomos
100%
Murwillumbah Services Memorial Club Ltd Derek Sims 100%
Murwillumbah Services Memorial Club Ltd Guy Diven 100%
Murwillumbah Services Memorial Club Ltd Ken Liddelow 100%
Murwillumbah Services Memorial Club Ltd Mark Lollback 100%
Wentworth Services Sporting Club Ltd Glen Walker 100%
Armidale City Bowling Club Vic Faulkner 99%
Canterbury Hurlstone Park RSL Club Ltd Michelle Boon 99%
Club Five Dock Ken Diaz 99%
Condobolin RSL Club Ltd James Stewart 99%
Fairfield RSL Memorial Club (City Of) John Burgess 99%
Fairfield RSL Memorial Club (City Of) Ken Young 99%
The Spanish Club Ltd Yolanda Rosario
Sanchez
99%
Toongabbie Sports and Bowling Club Keith Smith 99%
Tweed Heads Bowls Club Ltd Dawn Fysh 99%
Tweed Heads Bowls Club Ltd Peter Harris 99%
Alstonville Plateau Bowls & Sports Club Ltd Melissa Brooke 98%
Club Taree Geoff Garnett 98%
Murwillumbah Services Memorial Club Ltd Robert Kaehler 98%
Tweed Heads Bowls Club Ltd Tom Kelly 98%
Overall STATISTICS
Mean result: 91%
Median result: 91%
Mode: 93%
Range: 100% - 80%

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u
THE IMPORTANCE OF
FINANCE TRAINING
by Shayne Leslie, Member Services Manager, ClubsNSW
& Scott Tutton, Training & Development Coordinator, ClubsNSW
Boards of Directors play an extremely important
role in the management and financial performance
of registered clubs. The NSW Independent Pricing
and Regulatory Tribunal, in its 2008 report on
the registered clubs industry found that there is a
deficiency in the skill sets of many directors when
it comes to understanding financial concepts. It
also found those clubs that are successful typically
have a well informed and competent board.
The aim for each and every registered club
therefore should be to develop the skills of their
board members to ensure that they have a strong
knowledge of financial concepts. This will help
to ensure that registered clubs have the correct
systems and reporting procedures in place to
manage risk in the future.
While there is a great deal of commonality among
clubs (e.g. revenues from bar sales, gaming
machines, membership fees, etc) there is also a
great deal of diversity. Apart from the fact that
some clubs may be RSLs, bowling, golf, leagues,
sporting and ethnic, they often have differences
that may affect their respective chart of accounts.
This is compounded by the fact that some clubs
are large while others are small, and many are
members of an amalgamated entity. Additionally,
some may derive revenues from other non-club
business activities. But all clubs, no matter what their
size or purpose, do have legislative obligations in
terms of their financial reporting.
Many directors possess industry knowledge or
have experience on boards in the corporate world,
but there are many who do not fully understand
their financial obligations as a board member of a
not-for-profit registered club. Clubs that continue
to operate without completing a sufficient level of
finance training not only put the club’s financial
viability at risk, but they also leave themselves and
the club open to penalty under a range of legislation
including the Registered Clubs Act and Corporations
Act. This is why ClubsNSW has invested
significantly into researching and writing this course
in conjunction with KPMG over the past 12 months.
The course offered by ClubsNSW covers four key
areas of finance for club boards:
• Understanding financial concepts and reports
• Budgeting and effective performance
management
• Managing business changes
• Managing risk.
After trialling the course at the 2009 ClubsNSW
Annual Conference and extensive user testing, the
Finance for Club Boards online course has now been
released through the ClubsNSW Flexible Learning
website.

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With approximately 12,000 directors currently
serving on club boards across the state, conducting
face to face training for all directors is logistically
impossible. This is why the online finance training
module has been created. Online finance training
is especially beneficial as many club directors also
hold down full-time employment that can make
attending face to face sessions very difficult or
live in regional areas where face-to-face training
becomes very costly.
Online training allows directors access to the course
24 hours a day, 7 days a week, and also allows users
access from a range of different locations, so long as
there is internet access. It also means that directors
can break up their training into smaller 30 or 60
minute increments, or move on quickly rather than
waiting for others to ‘catch up’.
Finally, it is important to recognise when directors
complete their finance training. This can be done
by including information in annual reports, so that
awareness is raised amongst members and the
community, showing that their board is committed
to continually improving corporate governance. It
can also be recognised internally by presenting the
directors with certificates of completion at the next
board meeting. This will help to instill a sense of
pride and satisfaction amongst directors.
All those who complete the course have the
option to complete the assessment questions that
are provided as part of the course to achieve a
Statement of Attainment in Analyse Financial Reports
and Budgets (BSBGOV403A). This is a core subject
in Certificate IV in Governance (BSB40907).
Assessment questions are clearly marked as the
course progresses and there are multiple choice
questions at the end of each unit to check your
progress.
It is important to understand that completing the
multiple choice questions only is not sufficient to
have an effect on your understanding of financial
concepts; you must also complete the practical
exercises.
HAS YOUR CLUB
REGISTERED FOR ONLINE
LEARNING?
6 EASY-TO-FOLLOW STEPS
1. Go to the web page:
http://clubsnsw.e3learning.com.au/
2. Click the Buy Courses tab and click the
I Agree box.
3. Fill in the details for your Online Learning
Administrator.
Your ClubsNSW Club Contact ID Number is:
(you must first call the Member Enquiries Centre
on 1300 730 001 to obtain this ID number).
4. Click the Admin tab.
5. You are now in the Learning Administration
System.
New Groups will let you create groups. This is a
good way to separate different types of staff such
as Directors, Managers, and General Staff.
New Accounts will let you create individual
accounts, for each staff member or director that
can be assigned into your Groups.
6. Once the Online Learning Administrator has
created New Groups for all the CDI members
at your club then email, fax or call Member
Enquiries Centre and we will assign the Finance
for Club Boards course to those members.
If you need to purchase the online Finance for
Club Boards course for those that are not CDI
members, the Online Learning Administrator
can purchase through the Buy Courses tab with
a credit card.

9
STAND UP
FOR THE SERVICE
REVOLUTION
by Catherine DeVrye
Whether serving customers or tennis aces, keep your eye
on the ball if you want to be winners.
It’s summer and many Australians enjoy
watching or playing tennis - possibly at your club.
Competition abounds in both sport and hospitality
… and here’s a few hints how service can help you
stay competitive in an ever changing market with
rising customer expectations.
I’ve watched and played countless hours of tennis
and whether it is Wimbledon, the Australian Open
or local club, I’ve never once seen a player win a
match by looking at the scoreboard. Champions
keep their eye firmly focused on the ball and let the
scoreboard take care of itself. Yet, how often are we
so busy measuring customer satisfaction results and
looking at the scoreboard of tangible indicators,
that we take our eye off the actual customer
situation?
A classic example was an attempt to improve the
timeliness of train service. Although there were
indeed improvements that more trains ran on time,
it was also revealed that this was because they
didn’t actually stop at all stations to pick up the
passengers, as the drivers were only focused on the
measurement of timeliness! So much for keeping
your eye on the ball!
Let’s look at the acronym of the word, SERVICE
and other such analogies between service in tennis
and service to your club members and visitors.
Self-esteem
Too often, we have confused service with
subservience and people in service jobs have not
had the high self-esteem that their roles deserve.
How often have you played doubles with someone
who ducks and calls out, “Yours”? How often do u

10
you work with individuals who do an equivalent
‘duck’ and call ‘yours’ when there’s a tricky
customer situation arise at the club? We need to
feel useful and encourage all staff – old and new –
to step up to every customer situation, difficult or
otherwise, take ownership of that moment, and call
out, “mine”.
Exceed expectations
As customer demands increase, we need to
constantly meet and exceed their expectations.
Even though individuals may have been members
for many years, club leadership can
never take them for granted. It’s
not always the number one
seed who wins Wimbledon
but often the up and
coming players who
are willing to go
that little extra
distance to gain that
slight competitive
advantage.
So too in the leisure
business, and no
matter how great a
champion you or your
club may have been,
success in the past is no
guarantee of success in the
future.
Recover
We all know that things go wrong from time
to time and even customers appreciate this
fact. Encouragingly, the research shows that
if you satisfy a customer complaint, and do so
quickly, the majority of those customers will
become more brand loyal to your club if they feel
you’ve adequately recovered from an initially
unsatisfactory situation.
Just like missing a first tennis serve, most customers
let you have a second chance. It’s equally important
to remember that 96.7% of unhappy customers
never take time to complain so you better not
double fault on those who do.
Vision
As directors, it’s not only essential to keep your
eye on the ball but to keep in mind a long term
vision in order to successfully win tennis games or
customer loyalty. Neither happens overnight and
in order to maintain a key competitive advantage
keep in mind a long term vision.
Tennis games aren’t won or lost on centre court.
They’re won or lost on the back courts (or kitchen
or booking office) hour after hour, day after day,
week after week, month after month, year after
year of practice before you even qualify to play in
the big game.
Improve
Even if we never reach centre court, our tennis
game can improve through practice. The difference
between an amateur and professional tennis player
is that an amateur will practice until they can get
something right. A professional will practice until
they never get it wrong. We need to be professional
in our approach to serving members and guests, as
consistency is a key retention factor.
Care
If you’re a tennis coach you care about your
players, just as a service leader must care about
the needs and wants of their staff and members.
Happier employees yield happier members so it’s
important to have an open mind and genuinely
listen to staff suggestions. Customer care should
never be some phony platitude but a sincere,
heartfelt desire to help the customer by placing
yourself in their shoes, whether they are sneakers
or high heels!
As directors, always set a good example and look
for opportunities to show your commitment to a
great club. It can be as simple as picking up a piece
of paper in the parking lot or greeting a stranger.
Staff are ‘boss watchers’ and your example sets
a tone. It’s better still if you love your role; love
helping people.
In tennis, love is nothing. In life, it’s everything!
And it’s important that we genuinely care

11
about serving our customers, our organisations,
families, communities, planet and ourselves … not
necessarily in that order.
Empower
We all like to feel that we can make a difference to
the final score; that we’re a valued team player;
that we can be empowered to stretch ourselves
beyond former personal bests. John Akers, former
CEO of IBM, once said, “If you always get your first
serve in, you’re not trying hard enough.”
Certainly, it’s not all strawberries and cream in the
world of customer service but it will be ‘game, set
and match’ to those individuals and organisations
who recognise that looking after your customers
will result in increased net profits.
Love all. Love all customers. They keep the club
ticking. As directors, the ball is truly in your court
so remember that… whether serving tennis balls or
customers, keep your eye on the ball to be winners.
Catherine DeVrye, is the author of the #1 best selling book,
Good Service is Good Business and after excellent feedback
from the Gold Coast conference, will be the keynote speaker at
the Business Breakfasts 8.30am–10.30am on Wednesday 24
February at Campbelltown Catholic Club and Tuesday 30 March
at The Epping Club.
This is a modified excerpt from her other best seller, Hot Lemon
& Honey … Reflections For Success in Times of Change,
endorsed by the late Sir Edmund Hillary. Her service training kits
and books are available on her website or contact Catherine to
customise a presentation to help boost service levels and staff
morale at your club.
www.greatmotivation.com
P 02 9977-3177, office@greatmotivation.com
As directors, it’s not only
essential to keep your eye on
the ball but to keep in mind
a long term vision in order
to successfully win tennis
games or customer loyalty.

12
An individual’s behaviour is shaped by their
motivations. Business and marketing strategies
attempt to influence people’s motivations to
encourage a particular type of behaviour, whether
it is a purchase of a product or service, emotional
attachment to a cause, a new way of thinking or
loyalty to the club.
To motivate a patron you will need to know
something about motivation theory. In this article
we look at four types of motivation; needs, cognition
(thinking), incentives and observational learning.
Needs
One of the most widely known and used theories is
Maslow’s hierarchy of needs. People are motivated
to satisfy their physical needs (food and shelter)
and safety before satisfying the need to belong,
their self-esteem and their self-actualisation.
It is argued here that if your club exceeds customer
expectations in providing the basic needs – food,
shelter and belonging - then you will be doing very
well. Most Australians aren’t living off scraps in
dark alleyways Dickens-style. Have a look around
your neighbourhood and shopping centres and
make sure that your club exceeds the local standard.
Aussies eat quite well with a variety of foods from
different nations and we live in comfortable spaces.
WHAT’S YOUR
MOTIVATION?
by Shayne Leslie
Member Services Manager
ClubsNSW
Compare this to the quality of food and shelter you
are offering your patrons. If it is below standard,
then you are not meeting one of the basic needs
and people will not be motivated to come to your
venue.
Same goes for safety. Whether it is safety in the
car park, in the bar or anywhere else in the club, if
your patrons feel unsafe it is another motivational
barrier; another reason for your patrons not to
come. When you have satisfied the basic needs,
you allow you patrons to feel good about coming
to your club – self-esteem – and allow them to be
more than who they are – self-actualisation.
Cognition
Motivation through cognition is about how people
think. Motivation through cognition is the basis of
many loyalty and reward programs.
Victor Vroom’s Expectancy theory says people can
be motivated if they believe that a reward will
satisfy an important need and the desire to satisfy
the need is strong enough to make an effort. It is
based upon three beliefs:
• Valence – the emotional attachment to a reward.
• Expectancy – expectations and levels of
confidence about how to get a reward.
• Instrumentality – the perception that promises
of a reward will be fulfilled.

13
It is a tricky business in getting all three elements to
balance when devising loyalty and reward schemes.
The emotional attachment to a reward is going to
be different for each person, as is how much effort a
person will expend to get a ‘freebie’.
Due to the complexity of loyalty programs and
ensuring their success, many large companies now
outsource strategic and operational aspects of their
programs. Some argue that loyalty programs give
away free goods to people that are purchasing in
the club in any case and that the expense of doing
these programs properly rarely pays.
Loyalty and reward programs need a deep
strategy including clear policies and procedures
regarding redemption and expiry dates of points,
a well-publicised exit strategy for the club and an
ending date.
Incentives
Incentives are linked with reinforcement processes
and were emphasised by BJ Skinner. Skinner
asserted that positive re-enforcement is effective
at changing and establishing behaviour. This has
contributed to the development of the incentive
theory of motivation. In short, a reward is given for
an individual’s action or behaviour. The person
then associates positive meanings to the action
and it motivates the person to complete the action.
Immediate rewards have greater effects than
rewards for which the individual has to wait.
But it is harder than it seems as it can be easy to
reward A, while hoping for B and jeopardising the
motivational effect. Case in point is the buy-one-get-
one-free (bogof) meals. The motivational idea
here is to get people in the habit of purchasing meals
at your club. However, when your club returns to
price-neutral what is the effect on the customers’
behaviour? You may be hoping that they still return
to your venue because it is now their habit. Instead,
you may find that their perception was by attending
the club they received the reward of a free meal.
Now the reward has gone, they see now reason to
attend again. Therefore, the incentive has failed.
A better incentive is to reward with a ‘value-add’.
For example, you might consider ‘meal upgrades’
(i.e. larger serving) for members for so-many
points, or a ‘coffee upgrade’ (i.e. purchase a
standard, get a large for so-many points).
When considering an incentive think carefully
about what you want to achieve. Judge the group
of actions required to achieve the incentive and
judge what would be the effect if the incentive was
removed after a while – would the patron see it as a
form of punishment?
Observational learning
Social learning is also known as observational
learning. Rotter, in 1954, suggested that behaviour
is influenced by environmental factors such as
peers and external events. More recently, this has
been coined as ‘herding behaviour ’.
Herding behaviours may be frequent in everyday
decisions based on learning from the information
of others. For example, imagine walking down the
street and deciding where to dine. Suppose that
both look appealing, but both are empty because
it is early evening; so at random, you choose
restaurant A. Soon a couple walks down the same
street in search of a place to eat. They see you in
restaurant A while B is empty, and choose A on
the assumption that having customers makes it the
better choice. And so on with other passersby into
the evening, with restaurant A doing more business
that night than B.
Because people are rational, they realize that their
behaviour is based on limited information and are
willing to change. Thus, even though a thousand
people may have chosen one action, a single
new piece of information can induce people to
subsequently choose a different action. This is what
makes word-of-mouth so powerful.
There are a few lessons here. Primarily, a
constantly empty club is going to be a concern; no
one wants to socialise where there are no people
and no one will be talking about you on the street.
A carefully constructed entertainment program
can do the trick here. I am not referring to sticking
a two-man band in the corner and cranking up the
volume. By spacing activities out, there is a feeling
in the club that: u

14
• Something is about to happen
• Something is happening now
• Something just happened.
This creates movement, noise, colour and
fellowship in the club. People are attracted to this
and people will talk about what’s happened, is
happening now and what they’ve just missed.
Entertainment tools don’t have to cost much either
or always attract hundreds of people. Games and
activities can be created in-house and run by staff,
bargain with entertainers to get a cut price deal in
day-time entertainment, and ask your members
what ideas they would like – I’ve run everything
from, cooking with kids and kids bingo to art and
craft mini-expos, daytime trivia and Book & Movies
All prices shown are CDI prices and are inclusive of GST. For more information about these
resources, call the Members Enquiries Centre on 1300 730 001.
sessions (read the book, watch the movie, then
discuss).
Combining the elements
Naturally, there is a lot more to motivation theory
than we’ve covered here. Even on a basic level,
being aware of how you are motivating people will
give you an opportunity to tweak your strategic
ideas. Things like promotions shouldn’t be treated
as transferable from one club to another as each
membership base is different. Sure, be inspired by
what others do, but understanding what motivates
the different parts of your membership will allow
you to approve promotional and entertainment
activities that suit them.
RESOURCES
Board Prenomination Pack
The 2009 edition includes all you
need to run a successful information
session from information posters
& flyers to workbooks and online
courses.
$99 per pack
Club Industry Guide:
Governance and Compliance
This is the comprehensive & plain-
English guide for directors and
CEOs in NSW registered clubs.
Available in print $99
USB $33
or download (free for members).
Director Foundation &
Management Colloaboration
Workbook
This will assist you in completing
Director Foundation online course.
$39 each
Also available Finance for Club
Boards
$49 each
Capability Framework
Assessment CD Rom 2009
Edition
Completing the assessment will
help you identify your individual
and collective board’s strengths,
needs and the areas you as a
director might want to develop
through further training.
$99 each
HR Pack CD Rom 2008
Edition
This CD Rom resource provides
a range of example Human
Resource templates for policies,
letters and forms that can be
used to assist clubs to improve
their HR practices.
$99 each
Board Meeting Agenda
Template and Yearly Calendar
of Operation CD Rom
This CD Rom provides helpful
example templates for board
meeting agendas, board
minutes and a useful calendar
of board operation.
$99 each

15
SOURCING
WINE
FOR YOUR CLUB
Peter Lehmann is regarded as the Master
Winemaker of Australia’s famous Barossa Valley.
Originally formed in 1979 by Peter Lehmann to
assist the independent grape growers, who at
the time were facing financial ruin, this company
survived where most would have faltered.
Peter Lehmann Wines has developed into one
of Australia’s most respected, energetic and
innovative wine producers, with their wines having
won the highest accolades from wine judges both
domestically and internationally. Today, Peter and
his winemaking team, and over 150 independent
Barossa Valley grape growers continue to create
wines that delight wine lovers around the globe.
We asked Peter about his success and how to
choose wines for clubs.
Sourcing Wines for Club Wine Lists
When collating a Wine List for any establishment
offering Australia’s highest quality and best
value wines, it most certainly must have a certain
representation from the Barossa Valley. The
Barossa is acknowledged as the home of the
world’s greatest Shiraz, and Barossa Shiraz is now
universally respected as Australia’s own unique
wine style – a peer to Marlborough Sauvignon
Blanc, Napa Valley Cabernet Sauvignon or
Chardonnay and the great wines of Burgundy or
Bordeaux.
“It is fair to say that the wine world acknowledges
the Barossa as the home of Australia’s best wines”,
says Peter. Barossa wines are regularly acclaimed
World Class at international wine competitions and
Barossa winemakers dominate the lists of the great
names of Australian wine.
So what makes Barossa wine styles quintessentially
Australian? Peter says, “Take our reds, for example.
They’re flavoursome and satisfying that are
eminently drinkable at a young age but capable of
extraordinary longevity. Our whites are vibrant,
crisp and refreshing full of the sunshine of the
district.”
Peter tells of his favourite wines of the Barossa. “I
love the fresh, vibrant and crisp style of Semillon
and the Cabernet Sauvignon is world class
displaying all the rich cassis and mint so admired
of the variety with an added distinctive character
that makes it fulfilling and satisfying.” Indeed, the
region continues to astonish people around the
world with the incredible variety of wines and
wine styles that are made in this one small district.
Merlot, Grenache, Mourvédre and Tempranillo
flourish equally alongside Chenin Blanc and
Chardonnay.
For all of these reasons and more, Peter Lehmann
Wines from the Barossa Valley can provide an
incredible variety of wines that are considered
by Malcolm Stopp
Public Relations Manager
Peter Lehmann Wines
u

16
amongst the World’s best, and certainly at the most
valued price points.
Although you can talk to Peter Lehmann Wines
directly, Peter suggests you speak to your wine
representative and suggest the award winning
wine distributor, Samuel Smith & Son. “Samuel
Smith & Son has prided itself on having some of the
industry’s most professional and knowledgeable
wine representatives,” says Peter. “A great deal
of their knowledge has been provided directly
from many of their principal wineries, including
ourselves.”
(From left to right – Margaret, Doug & Peter Lehmann)
2008 Layers Red
New wine initiatives from Peter Lehmann Wines
A mélange of flavours drawn
from five grape varieties.
This multi-dimensional wine
is an exciting blend of Shiraz,
Mourvèdre, Grenache,
Tempranillo and Carignan.
The colour is a beautiful
black cherry with aromas
of dark plum, chocolate
and savoury black
olive.
The palate is a soft
mouthful of forest
fruits with wild
bramble undertones
and a fine stylish
finish. Truly, a quintet
blend of grape
varieties in perfect
harmony!
2009 Layers White
Intriguingly complex, beautifully
simple.
Semillon, Muscat,
Gewürztraminer, Pinot Gris
and Chardonnay –
each add character to the
final blend.
An attractive pale yellow
colour with greenish
tints, it has aromas of
citrus, hints of peach
and aromatic lifted
spiciness.
It has excellent
structure and a soft
creamy mouth-feel,
delightful depth on the
middle palate and
finishes wonderfully
fresh with a mouthful
of crunchy fruit.

17
COMMON ERRORS
MADE DURING
DIRECTOR FOUNDATION TRAINING
The Club Directors Institute experienced an
encouraging uptake of the online Director
Foundation course in 2009. Of those who undertook
the course, 87% passed on their first attempt. While
high standards were witnessed across most areas,
we thought it would worthwhile to highlight some of
the areas where most people didn’t go quite so well.
The Registered Clubs Act 1976 (Section 10(1(a))
states that the club shall be conducted in good
faith as a club in all circumstances where it is
‘reasonably practicable’ to do so.
Answer: False
This was a bit of a tricky one as it is nearly true.
The Registered Clubs Act 1976, Section 10 (1)(a) says
only that the club shall be conducted in good faith
as a club. There it ends; there is no reference to
‘reasonably practicable’.
The reporting requirements of the Corporations
Act 2001 state that the annual report must contain
(as a minimum) the following:
Answer: The financial report and directors’ report
for the year, the auditor ’s report on the financial
report.
The minimum requirements for the annual report
include:
• the financial report for the year (Section 295),
• the directors’ report for the year (Section 295),
and
• the auditor ’s report on the financial report
(Section 308).
The requirement to specify core and non-core
property of the club is contained in the Registered
Clubs Act 1976 (Section 41J (2)), not the Corporations
Act 2001.
Directors must be elected:
Answer: Annually or biennially, or in accordance
with the triennial rule as per the Corporations Act
2001 and as per the club’s constitution.
A club’s Board of Directors elections should be
conducted according to the club’s constitution and
any by-laws passed by the Board.
In addition to this, the Registered Clubs Act 1976
(Section 30) provides that directors must be elected
either:
• annually or biennially; or
• in accordance with the triennial rule (one-third
of the board retiring each year).
u

18
The Director Foundation course has been expanded
to include Management Collaboration. If you
completed the Director Foundation course in 2009
you receive the Management Collaboration course
for half price. The expanded course includes
topics such as core function of the club, succession
planning, looking at club stakeholders and more on
working with the CEO.
By completing the Director Foundation and
Management Collaboration online training, directors
can not only improve knowledge of their
legislative requirements, but they can enhance the
understanding of all their roles and responsibilities
they must meet as a director.
For more information regarding the online training,
please contact the Member Enquiries Centre on
1300 730 001, by email enquiries@clubsnsw.com.au or
visit www.clubsnsw.com.au
Which of the following statements are incorrect in
regards to board meeting minutes?
Answer: Board minutes cannot record individual
director ’s requests such as minuting voting
decisions and Board minutes should be distributed
to all members of the club.
It is a requirement of the Registered Clubs Act
(Section 30 (1)(c)) that minutes are recorded. The
detail in the minutes is very important as they are
a legal document and could be used in a director ’s
defence - or prosecution. The minutes represent a
true record of what occurred at a meeting and are
the only formal record of the decisions of the board.
Board members can also request that particular
issues are minuted, for example, if a vote is passed
5-4, the directors in the minority can request that
their vote is minuted.
Further to this, board minutes should never be
distributed to members of the club as they contain
confidential information.
Which statement is correct in regards to the right
to discipline members?
Answer: There is no general right at law for a club
to discipline members. This is limited to powers in
the club’s constitution.
There is no general right at law for a club to
discipline members. The club’s constitution sets
out any powers the club may have to discipline its
members.
Summary
Four of the five most incorrectly answered
questions in Director Foundation relate to
information contained in ‘The Law’ section of the
workbook. This suggests that there is still a sizeable
portion of directors who are unaware of all of their
legal responsibilities.

Stand Up for the Service
Revolution
Balancing Act: The Role
and Responsibilities of
Dual Leadership
Repetition is death. Ignorance is fatal.
If you treat all your patrons the same, and if you think
that this is want they want, then prepare to turn out
the club lights as your last loyal member leaves.
There are differing aspects of service excellence to
meet the current needs and expectations of your
patrons. The culture of relationship building, customer
satisfaction, and empowerment of staff starts in the
boardroom. Catherine Devyre shares how.
When 8.30am-10.30am
Wednesday, 24 Feb 2010
Campbelltown Catholic Club
OR
Tuesday, 30 March 2010
The Epping Club
Price $28 (Members) / $88 (Non members)
(includes hot and cold breakfast)
Catherine DeVyre was one of
the most popular presenters at
the 2009 ClubsNSW Annual
Conference and Trade Expo. She is
the author of bestselling books that
have been translated into over a
dozen languages.
NEW
The CEO–Chairperson relationship is pivotal.
A comprehensive understanding of each other’s
roles can be vital to the success of a club. Likewise,
the board needs to understand how to support this
important relationship by choosing the right chairperson
and participating in a supportive board culture.
This presentation investigates the impact of positive
communication throughout the board hierarchy, the
importance of the board charter and written agreements
and what action to take when things go wrong.
When 8.30am-10.30am
Thursday, 29 July 2010
Sydney venue (south side TBA)
OR
Tuesday, 24 August March 2010
Sydney venue (north side TBA)
Price $28 (Members) / $88 (Non members)
(includes hot and cold breakfast)
Julie Garland McLellan champions
the cause of boards required to
shoulder enormous responsibility on
a shoestring budget. She uses her
experience and depth of knowledge
in corporate governance to show
boards with limited resources
how to be more effective through
practical governance innovation and
know-how.
For more information visit www.clubsnsw.com.au/cdi
or contact the Member Enquiries Centre on 1300 730 001.

20
Your club finance training
is NOW online.
http://clubsnsw.e3learning.com.au/
Finance for Club Boards
From only $138 per person
Or free with Club Director Institute 2010 membership
Also available online:
Director Foundation
and Management Collaboration
Pre-nomination Package
ClubsNSW has developed a tiered system of training. All units of the tiered training
system are structured around the Australian Training Quality Framework qualification,
BSB40907 Certificate IV in Governance. You can choose to complete the courses
with or without assessment.
All courses are written by club industry experts. They are tailored for the unique
context of registered clubs.
Whether you are a director, manager or general club staff, if you live in a
remote area or your workload keeps you from attending critical training
sessions vital to your role, then the ClubsNSW Flexible Learning Program
is for you.
For assistance call the Member Enquiries Centre on 1300 730 001.

CDIssue25-10_Training

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