The Law of Social Capital


IHRSA member Roger Ralph making a point


Dare to share Networking is obviously helpful and often relied upon in certain specific circumstances, e.g., when looking for clients or searching for a new job, but, frequently, fears of competition prevent business owners from turning to their peers for ideas and insights. In the fitness industry, however, resourceful individuals and groups have found ways to minimize the competitive risks … to maximize frank conversation.


“NOTHING IS MORE IMPORTANT TO THE GROWTH OF A BUSINESS THAN BUILDING A BROAD NETWORK OF QUALITY RELATIONSHIPS.”


“Club operators are very enthusiastic learners,”


observes Will Phillips, the president of REX Roundtables, based in Quincy, Massachusetts. Founded 20 years ago, REX organizes and


orchestrates roundtable meetings of people within the same industry who get together three times a year for two days at a time. Participation is limited to no more than 15 men and women—none of whom are direct competitors—and a facilitator oversees the proceedings. The roundtables are strictly confidential and


foster close relationships. Members frequently communicate with one another independently outside of the roundtable format, phoning and


44 Club Business Internat ional | SEPTEMBER 2011 | www. ihrsa.org


e-mailing one another for suggestions on improving their business. “It’s all about community-building,” notes Phillips. Members are equally forthcoming with their


criticism, he adds. Participants practice “tough love” and aren’t afraid to take one another to task for poor advice or lack of follow-through. The worth of the concept is attested to by REX’s


own growth. Today, the firm hosts 17 health club roundtables internationally—eight in the U.S., two in Italy, one in Brazil, and six in Australia. “I can’t say enough about the people in our


group, or about how much the roundtable has helped me as a professional and with ideas that have improved our business,” says Paula Neubert, the president and general manager of the Green- wood Athletic and Tennis Club, in Greenwood Village, Colorado, who joined REX three years ago. “I’ve changed policies, procedures, documents, legal language, equipment-purchasing—you name it. There’s nothing we don’t talk about.” Most recently, she sought some guidance on towel sup- pliers, and the group was able to help her cut costs. In 20 years, REX has never had to do so. Phillips reports, with some pride, that roundtable


members spotted signs of an economic downturn three years before the Great Recession hit. In response, they were able to develop and implement a cost-cutting strategy that reduced expenses with- out affecting customers. “We averaged it out, and, over that three-year period, the average club in REX saved $300,000 dollars.” Neubert and other networking pros also make


profitable use of club visits. “As a consultant and co-owner of a club, my part-


ners and I are constantly sending our key people to other clubs to visit, observe, network, and learn,” says Maria Parrella-Turco, of Eclipse Fitness Sports and Wellness, in Green Brook, New Jersey. “It’s so syner-


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