Addison Reserve Country Club’s Harvey P. Stein Selected BoardRoom’s Distinguished Club President for 2021

BoardRoom magazine for the 14th year, is recognizing 22 presidents as Private Club Presidents of the Year – 2021 for practicing what they preach – leadership for the betterment of their clubs. Private club board presidents play a huge role in the professional operations of their club as volunteers working diligently with their board of directors and general managers. BoardRoom magazine’s 21 most outstanding private club presidents for 2021, plus the selection of Harvey P. Stein, President of Addison Reserve Country Club in Delray Beach, FL as the BoardRoom Distinguished President for 2021, exemplifies the focus on the leadership responsibilities, the accountability and the management of the board, while providing a healthy respect for the club’s macromanagement. In this continued series, we will feature all presidents honored for role they play and for making well informed, but not emotional decisions.

One inevitably might ask, “What is the secret ingredient that has made Addison Reserve such a success over the past 15 years?” 

That’s the question posed by Addison Reserve Country Club’s President Harvey P. Stein, and one for which he has a direct answer.

“From my vantage point, the answer is a simple one: It is the natural and overriding collaboration between the governance of our community and our executive management team.”

“President Stein, who became president of Addison Reserve’s board in March 2020, is our BoardRoom’s Distinguished Private Club President for 2021,” said John Fornaro, publisher and CEO of BoardRoom magazine.

BoardRoom magazine this year is recognizing 22 Private Club Presidents of the Year – 2021, including President Stein, for practicing what they preach – leadership for the betterment of their clubs – board presidents or chairs who serve as the volunteer leaders of their club. 

It’s the 14th year BoardRoom magazine has recognized the industry’s top private club presidents for their outstanding work. BoardRoom received nominations and applications from different clubs throughout Canada and the United States.

“Our selection of the top presidents and Harvey P. Stein as our Distinguished Club President signifies another successful search for leaders who have contributed so much to their private clubs and their member experience,” expressed Fornaro.

“We honor board leaders, exemplary individuals, who go beyond the basic requirements of governance and work collaboratively with the club’s management. The award underscores the role that a board president and his leadership play in driving a club’s success and contributing to the club’s long-term health.

“The non-profit private club industry is the most difficult industry of which to be board member and a manager. Board members, who are also the shareholders (owners) of the club, are also the customers. Often fraught with conflicts of interest, a private club can be very challenging to manage,” Fornaro added.

“Through the process of collaborative governance, the general manager, the club’s president and the board members are meant to work collaboratively. We recognize board presidents that don’t delve into micromanaging. Micromanagement is not only is frustrating for management, but also wastes board members’ often limited time to do their actual job, which is directing … setting policy, and not managing the organization or operations. That’s management’s job,” Fornaro emphasized.

The impetus for BoardRoom’s top president recognition program comes from its sponsors, the Association of Private Club Directors, the parent organization of BoardRoom magazine, and Kopplin Kuebler & Wallace, one of the country’s leading private club industry consultants.

“Harvey P. Stein is a true leader and a great partner with Michael (McCarthy, Addison Reserve’s CEO). Together they have made significant improvements to the club and the member experience.

“I had the opportunity to speak with President Stein at the Distinguished Ideas Summit and he praised Michael for his leadership and vision for the club. Harvey P. Stein is the kind of president all clubs should have. Congratulations to our Distinguished Club President!” expressed Gordon Welch, president of APCD.

Dick Kopplin, Kurt Kuebler and Tom Wallace, partners with Kopplin, Kuebler & Wallace, have been involved with BoardRoom’s outstanding presidents’ program from day one and based on their work with private clubs have an exceptional grasp on the nuances and requirements of private club governance. These experienced private club consultants know what it takes to provide strong, good governance at a private club, making their contribution to the top presidents’ program highly valued.

“Kopplin Kuebler & Wallace is proud to partner with BoardRoom magazine to honor the men and women who assist their clubs by volunteering to serve as club board president. These individuals give much of their time and talent by engaging with their general manager/COO to ensure that the club goals and objectives are attained each year.  

“Many of these leaders clearly understand how to keep their fellow board members focused on the club’s strategic issues and allow the professional staff to work through the operational issues. Along with BoardRoom Magazine, KK&W recognizes their positive contributions to not only their respective clubs but also the club industry at large,” the partners commented.

 It’s been an exceptional couple of years for President Stein, who in his first days as president faced the major issue of COVID 19.

“Harvey P. Stein became our board president on March 16th, 2020, when the board, which included three new members, elected him president,” said Addison Reserve’s CEO, Michael McCarthy.

“One day later, on March 17th, because of the pandemic, Addison closed its indoor facilities and on March 24th closing of the golf, tennis, pickleball and the pool facilities followed. Right from the beginning, President Stein has guided the board in establishing clear and realistic goals and supported management in their endeavors to keep Addison’s members satisfied during this difficult time. 

“On March 17th, a non-contact home delivery of food from the Grill began. Delivery of quality food became an important new business for us. It still is and will be in the future,” McCarthy added.

The collaboration that President’s Stein emphasizes has worked for the betterment of the club.

“Said another way, our board and our CEO/general manager, Michael McCarthy are aligned and work in unison. We are guided by a common goal: To work in the best interests of our members – both current and future,” Stein explained.

“Moreover, for this relationship to be successful, there must be, and has been, mutual trust and respect between our voluntary leadership and paid leadership. In my opinion, it’s a trust that has been earned by both groups and one that given our many demonstrated successes to date, is applauded by our membership." President Harvey P. Stein

“We have worked together to define the boundaries between governance responsibility and management accountability. Our board resolved many years ago not to be controlled by operational committees led by volunteers. Instead, our elected board focuses on our overarching commitment to formulate strategy, set budget and define policy. In turn, it’s our exceptionally qualified professional management team that sees these objectives to fruition,” Stein added.

This collaboration, in the McCarthy’s mind, is a reality emphasized by actions during the pandemic.

“President Stein has guided the club through this pandemic and navigated waters that we’ve never tread before. His philosophy is that it’s the board’s function to receive and analyze input from our members and to implement these ideas in setting the club’s goals and policies. 

“It’s then the board’s responsibility to work with the club’s management to develop plans and strategies to implement these policies and achieve the desired objectives. It is President Stein’s belief that board does not manage, but rather oversee the club’s management and operation to ensure that our plans and objectives are being met, and that the Club maintains a position of financial stability,” McCarthy added.

“Also, it is because of his desire to maintain Addison Reserve’s well-deserved reputation as one of the premier country clubs in South Florida and the United States that makes him such a successful president. He helps the board make the proper decisions, through effective management and fiscally responsible governance, on operations, facilities and member lifestyle. This includes continuous analysis of Addison Reserve’s facilities, by-laws and rules and regulations to make our member’s experience more fulfilling,” McCarthy intoned.

President Stein is also a president who has a passion for his club and who acts in the club’s best interests without regard for external pressure or personal gain.

“The federal government’s payroll protection plan stands as case in point,” expressed McCarthy.  

“We were informed that the federal government offered a payroll protection plan, which included a loan and a forgiveness of part or all of that loan. Our board was told we had to decide whether or not to approve the loan and at a special meeting the board approved the loan. 

“We were told by the bank that if we did not get the paperwork in by May 4th, we might not be able to get the loan. We were also told that if we returned the loan by May 8th, at the time, there would be no penalty. At that time, we had an operating surplus, a line of credit and cash reserves,” McCarthy explained.

“The board met again on May 4th and after studying the matter and the certification required, voted to return the loan, which was repaid by Friday of that week. Once the loan was returned, according to an SBA rule, we could not reapply for the loan. The certification stated that ‘current economic uncertainty makes this loan request necessary to support the ongoing operations.’ 

“Borrowers must take into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. In fact, we had a line of credit with bank, which was greater than the PPP loan. We have never accessed that credit facility,” McCarthy added. “As a point of information, there are over 50 residential country clubs in Palm Beach County and according to an article in the Palm Beach Post, only six kept the PPP loan.”

It has certainly been and unusual year and managing the club’s finances have been quite challenging. However, “Addison Reserve Country Club & Association continues to operate profitably,” McCarthy said. The club, for the year ended, Sept. 30 had accumulated a surplus of approximately $1.5 million and as a result the board voted to refund $1,000 to each golf member and $700 to each sports member.

Community outreach programs have also been a highlight of President Stein’s tenure. “We instituted an ‘Adopt a Hospital program’, to give back to people putting their lives on the line for us. Addison and six other clubs also ‘adopted’ the Delray Medical Center and this program provided complete dinners in individual to-go containers.

Addison’s staff has also benefitted from President Stein’s leadership because of a payroll continuation program.

“For those hourly workers who were continuing to work their salary was raised by $2 an hour. Those unable to work, mainly golf, tennis, spa and fitness, were paid from March 25th to May 14th. At that time, the board decided not to furlough any employees during that period of time,” McCarthy added.

“We are a family first and foremost, and we support each other, especially in difficult times. We are all grappling with the constantly changing COVID-19 situation and a small sliver of generosity might be just the kind of inspiration we could all use right now. President Stein has committed to taking care of our staff, and, hopefully, setting an example of how one business can make a difference,” Michael McCarthy, CEO Addison Reserve Country Club.

But we leave the final thoughts to President Stein.

“It is not unreasonable to conclude that fundamentally, the success and stature that Addison Reserve has achieved is a direct result of the collaborative organizational approach shared between our governance representatives and our professional executive management team.” 

All good reasons demonstrating why President Harvey P. Stein is deserving of his selection as BoardRoom’s Distinguished President for 2021.  BR