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## So Far So Good in Kampala, Uganda

## ...An Employee Association Success Story

A week after Cathy Cliff took over the position of general manager of the American Recreation Association (ARA) in Kampala, Uganda, the American Club went into liquidation.  The average life-span of a general manager prior to her arrival was between six months and a year.  As a result, inventories were lost and most of the club’s assets were missing.  The restaurant possessed six spoons and eight forks.  The kitchen was functioning with a domestic stove with only two of the four burners in working condition.  That was 1994.

Subsequently, the ARA requested a loan from the Central Commissary and Recreation Fund as a last ditch effort to resuscitate the lifeless association. The loan was approved.  With the funds in hand, the ARA staff went to work to rebuild the association.  Having the continuity of management and staff added much needed stability.  Inventory controls were put into place.  Expenses were cut where appropriate.  New ideas were implemented. Things were changing for the better.

Monthly theme nights such as Mexican, Italian, and Thai were introduced.  With the success of these, the word spread.  The ARA was called upon to cater a Latin ball with over 200 guests, as well as, various dinner parties. 

When the Rwanda crisis hit, the ARA was approached by a missionary aviation company in the neighborhood to accommodate their employees.  They were willing to sleep on the floor as all the hotels in Kampala were occupied.  Although the ARA did not operate TDY quarters, Cathy and her staff quickly rounded up bedding and utilized some vacant space.  The Embassy also assisted in equipping the rooms which allowed the ARA to charge higher rent.  In the space of a few months, there was enough profit to fully furnish all four rooms.

In 1996, the ARA leased the house next door, brought down the fence between the properties and doubled the club’s grounds.  The house consisted of four bedrooms and after the renovation of the building those rooms became even more popular than the original four.  They transformed the garage into a gym/sauna and purchased gym equipment.  (Which later became so popular, it was doubled in size.)

Shortly thereafter, two squash courts were constructed and a volleyball court was added making the facilities very attractive in comparison to other clubs in the city.

In 1998, the ARA was given the option of leasing a second adjoining property yielding an additional acre.  Again, fences were brought down to increase the grounds.  The new area became a space for functions such as a monthly flea market and the annual July 4th picnic.

Inside, one of the larger bedrooms in the newly acquired space was made into a suite with a private bath.  A private lounge and kitchen facilities were also made available.  The largest room was converted into a conference room for which the ARA regularly receives bookings for up to 40 people for lunch and teas.  Cathy believes the increase in the club’s restaurant and bar sales are the direct result of the popularity of the rooms.  

The ARA has built a reputation for catering and cocktail parties.  Management routinely reviews menus to remain competitive.  They handle everything from the meal right down to the tent hire.  They provide full service equipment rental from chairs and tables to silverware and glasses.

Throughout the transformation of the club facility, the ARA also kept its  commissary and video club afloat.  Unfortunately, commissary sales are much reduced in recent months due to the opening of warehouse style supermarkets.  To that end, the ARA provides a special order service through the commissary for items not available locally or not in high enough demand to stock on the shelves.  They also share container space with the Danish Embassy to cut down on shipping and clearance costs.

Last year, the ARA staff inventoried the videotape library and cleared out and sold all duplicated and old tapes at the flea market.  The funds generated were used to purchase previously viewed (but recently released) tapes from Blockbuster Video at an average cost of $8.00 per videotape.  ARA members were thrilled at the addition of over 100 new tapes.  

Cathy and her staff aim to make the best of the facilities available to the association.  Both of the ARA’s tennis courts were resurfaced this past year.  The swimming pool, although old, is kept in good order with crystal clear water at all times.  The grounds are very attractive and the staff exudes a warm and welcoming atmosphere.

Sub-committees to the Board of Directors work on such issues as capital improvements, sport and social events, membership, and the commissary.  Members are encouraged to join committees and often participate in organizing tournaments, leagues, and theme nights.  The ARA routinely publishes a newsletter and encourages members to share their ideas and suggestions.

Today, the ARA consists of a commissary, restaurant, snack bar, bar, videotape library, guest rooms, tennis courts, swimming pool, squash court, gym, basketball court, volleyball court, horseshoe pits, sauna, conference room, and playground.  The association also provides catering, cable television and a massage service.  There are thirty-four full-time employees. Gross sales for calendar year 2000 were nearly one quarter of a million dollars in service and sales income.  So far, so good. 

*Special thanks to contributing writer and ARA General Manager Cathy Cliff.*

If you have a story to tell, we’d like to print it.  Please submit details to *CRonicle* Editor Annie Cocchiaro by fax (202)663-1329, email (cocchiaroar@state.gov) or the internet (CRLOGON@EROLS.COM).

*They Don’t Sell Many Buggy Whips Anymore*

Inventory is Latin for the stuff I think you’re supposed to have in the commissary.  Dahlgren Bros. Store in Onamia, Minnesota is where I used to go to get groceries when my mom would send me, with a list, downtown (two blocks).  I believe the word commissary is Latin for general store, which is what Dahlgren’s was in my youth.  To me, the word inventory had very little meaning until I went back to school for accounting.  Then it simply became a word for an account, which in dollar terms defined what a business held for sale.

Dahlgren’s, on the other hand, embodied what inventory was.  As the saying went, “If they don’t have it, you don’t need it.”.  From ice cream to refrigerators and from shoelaces to boots, they sold it.  If your television was on the fritz, Howard had the tube to make it work.  For nearly one hundred years Dahlgren’s provided what was needed in a town of 600.

In its day, Onamia was a bustling little logging town that boasted at one time 13 gas stations.  Then the white pine ran out.  Today, there are 1.5 gas stations.  Onamia is 45 miles from cities of 15,000 and 50,000 and an hour and a half from the Twin Cities.  As the highways improved, people discovered that they could obtain goods not available in Onamia.

You might not know that Onamia is the gateway to Minnesota’s fishing and recreation areas.  Mille Lacs Lake, the Walleye Pike capital of the world, is just three miles north of town.  U.S. 169 ran right through town and past Dahlgrens.  Business was good until the highway department decided to bypass town, if only by a few hundred yards.  That was the beginning of the end and that was over 40 years ago.  Howard and Wesley Dahlgren owned land right at the junction of the town road and the highway.  But, did they move out to the traffic?  

Too late now.  SuperValu was happy to fill a prominent spot along that strip of land.  

Howard is gone now and Wesley, at 90 years old, shuffles around the near empty store in which he was born.  Wesley’s son gave up the business some 20 years ago when the elders refused to move out to the highway.  The store may be empty of customers but not of inventory.  They don’t sell many buggy whips anymore.  Or, appliances for that matter.  But, if it has a use-by date, you can still find it there.  Freezer burn doesn’t do much harm, but I’d watch out for the swollen canned goods.  

What’s the moral of the story?  Pay attention to what is going on around you.  Businesses cannot operate in a vacuum.  Economic changes are usually gradual and the activity of one day, quarter, or year may not seem much different than the one before.  Just because you’ve been the only market at the end of a dirt airstrip doesn’t mean your customers are always going to wait for the bush pilot to return.  Markets change everyday providing more choices to *your*customers.  Embassy personnel, even if they are supporting the association through deposits and dues, will still be looking for the better deal.  How will you compete?

*The above article was drafted by CPA Chuck McShane, CR’s newest Accountant.*

First Impressions  Seeing Your Operations Through the Eyes of Your Members

A common problem of many hospitality and retail managers is the tendency over time to develop “tunnel vision”.  Either you focus on something to the extent all other objects around it disappear (me watching the news when I come home from work, as my wife alleges), or you do the complete opposite and look at something for so long that you no longer notice it (my wife, for instance).

All joking aside, it takes a concerted, but necessary, effort to step back and look at your world through another’s eyes, specifically those of your members.  Each day is so full of minor catastrophes, you miss the opportunity to see the little things.  Step back, take a deep breath, and go for a walk, with the blinders off this time.  As baseball hall of famer Yogi Berra once said, “You can observe a lot by watching.”.

To make the most of this exercise, take along the following checklist and see how you measure up.  Consider it a head start before we stop by for a visit.  (Keep in mind, some of the following may not apply.)

**EXTERIOR**

· Security wall/fence in good repair – painted, no breeches, outside grounds well maintained.

· Security guards neatly uniformed.  All members greeted and identification checked.

· Landscaping adequately maintained.

· Parking lot and curbing in good repair – no holes, ruts or chipped paint.

· All lighting (security and ornamental) in good repair and functioning - no broken fixtures or burned out bulbs.

· No evidence of clutter – excess equipment properly stored.

· No visible trash – no debris on grounds, trash receptacles clean, and if possible, out of sight.

· Outbuildings in good repair – paint in good condition and roof in good repair.

Recreational Facilities

· Swimming pool – lifeguard or “responsible person” on duty, safety fencing in place, pool floor and decking in good repair, acceptable water quality, pool furniture clean and in good repair.

· Tennis courts – surface and equipment in good repair  - no cracks, holes, peeling paint, torn nets.  Court free of debris.

Main Building(s)

· Paint and wood finishes in good condition, roof in good repair.

· Landscaping well maintained - no overgrown, dead/sickly plants or weeds.

· Entrances and exits free of clutter and easily accessible.

· Door/window frames and glass clean.  Tape from postings removed, frames free of dirt build-up.

**INTERIOR**

· Walls and flooring clean and in good repair  - no peeling paint, missing tiles or rotting areas.  Floor mats used during wet conditions to prevent slips and falls.

· Interior lighting functioning.

· Rest rooms clean, stocked and functional.

Staff

· Clean and neatly dressed.  Uniforms should be provided, if possible.

· Good personal hygiene practices evident - skin, fingernails, and hair clean, hands kept away from face.

· Staff demonstrates attentiveness.  All members met with a smile and greeting, any problems resolved efficiently and to the members’ satisfaction.

Dining Area(s)

· Adequate ventilation and air movement - no odors or smoke from kitchen.

· Table linens, if used, are unsoiled and in good condition.

· Tables and chairs clean and in good repair.

· Dishes and utensils clean and in good condition - no dirt, chips, or cracks.

· Menus clean and presentable.  Soiled or torn menus should be discarded.

· Background music is suitable and kept at an appropriate volume for the function.

· Cleaning programs in place and carried out.

Commissary/Store/Gift Shop

· Stock merchandised by commodity.  Non-food items stocked separate from food items.

· No expired merchandise. 

· Product on shelves fronted, leveled, and rotated.

· Shelves clean and free of debris.

· Aisles free of clutter, all product stored at least six inches above the floor for proper cleaning and sanitation practices.

This exercise is by no means all inclusive.  After all, we haven’t peeked into a stockroom or opened a single refrigerator.  I’ll get back to you on that.  The idea is to take time and attempt to see the members’ perspective.  Remember, you may have but one opportunity to make a good impression.  Make it a good one.

*The above article was drafted by CR Operations Officer Rob Whetsel.*

Human Resources

*...Managing the Association’s Most Valuable Asset*

In the last issue of the *CRonicle*, we featured an article on human resources that focused on the hiring process and included procedures for executing employee agreements and position descriptions.  The fact is, you spend a great deal of time and often, money, recruiting employees.  So, how do you get the most bang for your buck?  Oh yes, the *other* “r” word.  How do you retain employees?  A leading factor in retention is job satisfaction.  We know employees want good pay and benefits.  We also know employee associations are often strapped financially and are unable to provide the most competitive wages and benefits.  So, let’s focus on another way to promote job satisfaction.  Specifically, motivating employees with opportunity.  The opportunity for training, development, and growth.     

A performance based rating system has been proven to assist in training and developing employees.  In order to implement a performance based system, employees should be provided standards for performance.  For example, commissary staff should be held accountable for ensuring that damaged/expired goods are routinely removed from the sales area.  Accounting staff should be responsible for meeting specified deadlines in preparing financial statements and other financial reports.  Cashiers should be held accountable for cash drawers to a predetermined level of accuracy.  F&B managers should be responsible for maintaining acceptable food spoilage levels.  Every position will have minimum acceptable standards.

Develop and document standards for each job.  Standards for performance should be provided in writing and will serve as the basis for conducting annual reviews.  

Establishing an annual review process can be a fairly simple task once you have provided performance standards to employees.  A timeframe for the rating cycle should be determined.  Often, a calendar year basis works well.  You should select a timeframe that will allow for both preparing the ratings and discussing the ratings with each employee.  In other words, I wouldn’t plan on conducting performance discussions with employees during the annual audit!

Next you’ll need to develop a format for documenting the review.  One simple method is to list and rate a series of qualities (i.e., dependability, productivity, initiative, organizational skills, efficiency, etc.).  Within each rating, a narrative may be included to provide any feedback and/or suggestions for improvement.  You should also allow space for employee comments.

Once you’ve developed your format, provided standards to employees, and established the rating period, you’ll need to introduce the staff to the rating process so they will know what to expect.  (Rating  guidelines should also be incorporated into employee handbooks.)  Employees should be encouraged to use the rating for developmental purposes (i.e., identifying training and cross-training needs).  

As managers, you have the opportunity to use the rating process to reward employees.  Remember, rewards need not always be monetary.  Some examples of non-monetary rewards might include free videotape rentals, a meal ticket in the association’s cafeteria, or a free gym pass.  The fewer the resources, the more creative you’ll need to be.  But remember, if you want to retain employees, recognize them for good performance.

*Back Talk*

*We heard that...*

*While in Accra, Ghana*...you should take a weekend and visit the rain forest.  The canopy walk above the trees is sure to get your heart racing.  Accounting Team Leader Francisco Lloret walked the canopy (a series of rope bridges high atop the trees).  I wouldn’t look down if you’re afraid of heights.  Francisco says it’s a once in a lifetime experience that he would *never*do again!

*If visiting Warsaw, Poland...*you should spend a weekend in Krakow.  Krakow is a college town south of Warsaw.  A short, and inexpensive, train ride from Warsaw, Krakow offers excellent restaurants and great shopping.  Leather and amber are in high quantity and quality. And, the prices can’t be beat.

*In Sanaa, Yemen...*make time to enjoy the fresh fish.  Many restaurants let you pick the fish you eat.  The fish is then cooked and served whole with various sides and condiments.  It’s a treat you won’t soon forget.

***In the next issue of the CRonicle, we will serve up a feature article on the 2001 Employee Association Training Conference and Trade******Show***(to be held at the Ritz-Carlton at Pentagon City Mall in Arlington, Virginia from August 27-31).  Until then, that’s all folks!

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