CHAIRMAN’S REPORT FOR THE YEAR ENDED 31ST DECEMBER 2011
PRESENTED AT THE ANNUAL GENERAL MEETING HELD AT THE SPORTS CLUB ON TUESDAY 5th JUNE, 2012
Fellow Members:
It gives me great pleasure to address you at this Annual General Meeting which also marks the end of our Management Committee’s end of first tenure in office. You elected us on 15th July, 2011 which was a few months later than should have been the schedule. Together with my MC team, we immediately embarked on the task of serving our club.
I would in the first instance like to sincerely thank my MC team for their cooperation, dedication and resolve to work assiduously for the club during the year under review. I have enjoyed excellent team work with all of the MC team and all of them have made their best contributions despite their busy schedules in their various day jobs. I ask you to join me in saluting this team.
I thank all our members especially those who reside in Kakamega for their support and cooperation with the MC. Without such support, there cannot be any meaningful progress at the club however brilliant the MC and staff may be. I thank all our members of staff for their work .during the year under review.
When we took over, I set in motion a clear way forward based on the Club master plan that I had authored and sold to the previous MC. I am happy to report that this MC adopted this way forward and have been applying it to our management of the club to date. We have worked as a team based on various core areas as was defined in our division of responsibilities. I for one have found this to be productive and focussed. It is a fact that providing certainty of direction and targets is absolutely important for achieving desired results. I have a corporate background as you may know and so I find it rather compelling to do things focussed on results. The running of our club is a business engagement hence why we must have focus.
Our work was underpinned by three core themes namely; Innovation, Change and Development. This has meant that anything outside of this triumvirate counts for little or nothing to our main goals and objectives. I will now proceed to report on the various outcomes and also challenges during the year under review reflecting on our approach above.
We have had the great good fortune of a historic generous sponsorship from Mumias Sugar Company for the construction of our new club house. On behalf of the MC and all our members I wish to thank MSC for this offer which will for ever change the face and future of Kakamega Sports Club. I am grateful to my predecessor Dickson Mutoka whose appeal to his previous employer resulted in this great development for our club. History will record this contribution for posterity. I thank the MSC outgoing CEO Dr Evans Kidero, the Chairman of MSC Board Mr John Bosse who is also our club patron and his board for their sponsorship. May I take this opportunity to wish Dr Kidero well in his political endeavours in Nairobi County. We congratulate the new CEO Mr Peter Kibati and wish him well in his new role. Many people had doubts as to whether the new club house would be realised, some even thought it was a pipe dream. Well, the good news is that the new club house construction is close to completion.. We expect to migrate in the second half of this year and to enjoy a new ambiance, more room and better services. Thanks to all of you for your patience and tolerance in our IDP camp.
The new club house will put Kakamega Sports Club in a unique league and should deliver more benefits going forward. I thank my Vice Chairman Logan Busolo and his Development sub committee charged with overseeing this project. I am also grateful to the contractor Midland for the excellent execution of the project and their cooperation. Finally I thank our Architect Dr Laban Shihembetsa for his creativity and dedication to the project albeit within our very limited budget. He is an understanding person and good member of our club.
The new club house at once poses a huge challenge to us. We need to equip it to meet modern standards and its stature. We need to market it to realise its full value. And we need to ensure we have services that match its size and stature too. All these have meant that the MC has to work in overdrive mode to meet the various challenges. And I am happy we have responded accordingly though we have yet to accomplish the mission. There is a lot to be done.
So far we have embarked on furnishing using our own resources as we pursue other opportunities to help us complete the project. I appeal to all our members to contribute to this worthy project in whatever way they can. Harambee!!!!
We determined that cost control and accounting were a major challenge for the club. We had to be innovative in addressing this matter and consequently introduced QuickBooks. This has now enabled us to be better able to manage our sales, procurement and other business operations. Like any change, I am aware that it has brought with it some minor headaches and inconveniences but above all it is of great value to our club. Long gone must be the days when we did business here as if the club was a little corner shop that is the preserve of a few characters out to fleece the business. I remain persuaded that cost control and accountability are the hallmarks of a successful business operation and wish to see this continue and enhanced. I am grateful to our Treasurer Charles Omega and his Finance & Procurement sub committee for his dedication to this area of the business. Without their insightful and professional approach we would be nowhere near this solution.
The success of the club will always depend on the calibre of staff we have in place. The MC’s role is to drive policy and strategy whilst the staff runs the day to day operations. We determined that we needed to address staff changes to move on in a positive, accountable and productive direction. As you may be aware, we lost our previous manager through her own resignation. We developed a club organisation chart and defined all roles and responsibilities. We have recruited a professionally qualified and experienced general manager who has since settled in and is making the desired changes addressing in particular cost controls as a priority. We have reviewed staff salaries and rewarded people based on merit. The club needs to pursue continuous staff improvement and morale boosting in order to enhance its services and succeed in its business operations. In this process, there are bound to be casualties and winners as often happens and for that there ought not to be any apologies providing the actions are justifiable and legally correct. I would caution our members against encouraging or entertaining any siege mentality or emotional attachments in this area. Fact is without good people no business can succeed. And without accountability, this club can keep its doors open for business every day yet keep bleeding financially. None of us needs to see that happen. I have learnt that the hospitality sector requires extra vigilance at all times or you will simply end up in a financial quagmire.
We made good progress on the long standing issue of the club land. We were able to sort out the matter of new lease for the club house parcel of land and paid the ministry the requisite fee. We are awaiting issuance of the new lease. As for the parcel of land that is due to the golf course, we were asked to regularise the club’s Trusteeship arrangement to enable us apply for its registration and subsequent lease certificate. This is in process and awaiting the decision of this AGM today. I am happy to report that this land matter has been moving on with the support of our MC member Linus Obutu who as you know works for the Lands ministry. We have not spent any money on land brokers. We thank him for his contribution in this regard and for his work as our Wines Member.
Communication with members and all other stakeholders is important for the club as is the case for any other organisation in this day and age. The MC has achieved a lot in this area. We enhanced our website management. We have been better at the use of email as a medium of communication. We have also catered for the few members who for unknown reasons still remain in the printed word era of communication in this dot com era! Plans are underway to introduce a club newsletter. Our Hon. Secretary Prof. Egara Kabaji has been steering this medium of communication.
Nothing exemplifies the club more than golf and affiliated sports, for this is Kakamega Sports Club after all. Following our appeal for corporate support West Kenya Sugar Company responded with a donation of Shs 200,000 and offered to renovate our Squash and Tennis Courts. So far work on the squash court has been completed while we await work on the tennis courts. We are most grateful to WESCO for this offer and appeal to other corporates to help us. We were not as good on the golfing side as we should have been. This you will see in the accounts as well. I appeal to our golfing members to take the matter of golf leadership and management at the club more seriously and in particular to realise that it is important to grow the sport especially now that we will soon have one of the best club houses in the country. The Golf Captain has to steer this ahead. Vice Captain Julius Oketch has innovative proposals that need to be pursued.
Let me now turn to the very important issue of finances. At the risk of repeating myself, let me state again that financial probity and accountability are key planks of success at the club. The MC has done its best guided by the Treasurer and his Finance & Procurement sub committee to improve things in this crucial area. We have streamlined the procurement process to include mandatory requisitions, LPOs and invoicing leading to payment vouchers before cheques are issued. We have reduced the cash float to minimise temptations for pilferage. We have introduced competitive tendering where any capital expenditures are involved. And we have reviewed our supplier base to get value for our money. We have also made it mandatory to make most payments by cheque not cash as was the case previously. But there is still much to be done especially in further streamlining procurement and I hope the incoming MC team will address this challenge. It is important that this be done as we move to a bigger club house where business is bound to expand. The fundamental guide is for the MC itself to avoid conflict of interest and to be above board in its operations. I would hate to see a day when MC members of our club are accused of financial misconduct. We have embarked on a journey to clear these messes at the club and to make reforms that are hopefully irreversible. This is very important for our club. We need to hire competent qualified people to manage these reforms. And we need to generate revenue to develop and run the club. To this end I appeal to our members to always honour their obligations. It is a shame that we at times have to remind members including some very senior ones to settle their debts. The MC has plans to introduce a magnetic swipe card payment system soon to eliminate cash handling. That is a key area for the next phase of our innovation. As you will have read in the accounts, the club’s performance especially since this MC took over in July 2011 has shown good improvement. More still needs to be done. We have availed the Q1 2011 and Q1 2012 figures to demonstrate what is happening in this area.
Given the various challenges that need new capital outlays, we are compelled to appeal to members to dig deep in their pockets to address these. We need to increase our club entry fees, we need a development levy and we need to increase our subs. These will be presented to the AGM for approval in the next agenda item tonight by Vice Chairman.
Finally, let me make my ultimate appeal. It is that we need to recruit more club members and that when recruited they should honour their obligations. In our master plan published in 2010 we forecast quite accurately that Kakamega was changing, devolution was coming and that life styles were shifting rapidly. Needless to say the new club house was part of that master plan and now having got it, the challenge is to maximise its use and to manage and maintain it well. We must avoid having a white elephant here. The future is bright, but that brightness could easily be dimmed if we lose focus and attention on the key areas of Innovation, Change and Development. We will miss our targets if we do not focus on continuous improvement and sound financial management. I appeal to our members to give support to the ongoing changes and not to suffer any sense of personal loss. Change at times causes unease and makes people feel left out. The mantra has to be if we do not change, then change will change us for the worse. We need more younger and dynamic members to join the club to inject in more zest and new ideas. We need more women members to join the club. And we need more ethnic and racial diversity to reflect the diversity in unity of our country. We need committed men and women in the MC to avoid past pitfalls and to steer our club to ever greater successes going forward. Serving on the MC requires dedication and selflessness. I am happy that together with my MC team we have done a good job of work thus far and we are ready to do even more as we look forward to your continued support.
Thank you all for your support. Thank you for your kind attention. God bless you all.
Message To Our Members From The Chairman – 24th October, 2011
JUST OVER ONE HUNDRED DAYS IN OFFICE
On behalf of the Management Committee ( MC), I would like to thank all our club members for their continued support of the MC and patronage of the Club in varying degrees. This has ensured that we, your MC are energised and encouraged to keep working to deliver on the mandate bestowed on us to provide service to our club members and other club customers. It is not an easy task, indeed it can even at times appear thankless, but I can assure all members that we are committed to delivering service and managing the club as best we can.
To date we have done just over One Hundred days in office. That is a time of some ritual against which we are happy to run you through some of the things we have done so far and to state what is ongoing and what is imminent.
You may recall that we established sub committees to make the work of the MC more effective and productive. This was to ensure that we function efficiently and in a focussed way with team work and transparency / accountability being the guiding principles.
The sub committees developed their plans of action on which our ongoing work streams are now based. You can view some of these on the website or better still contact the various sub committee heads and teams for further information. I am completely determined as Chairman that we progress things in this way. I would like this regime to be remembered for bringing about innovation, change and development that is sustainable and beneficial to Kakamega Sports Club.
On the Development, HR and Communications front, we have made a lot of progress. In short we have crafted the right plan for attaining the objectives identified in this area viz; agreed a work schedule with the contractor for the completion of the new club house, established a working relationship with the consultant and the contractor. The new club house is close to the stage of laying the first floor slab and the ring beam. A delay was caused by lack of NEMA certificate but this was resolved by the MC to enable the construction to proceed apace. We have established a site meetings schedule at which all issues are addressed and resolved amicably.
We have developed a plan for migration from the temporary club structure to the new club house upon its completion. This plan includes ways and means of raising money for furnishing the new club house which as you know falls on members not Mumias Sugar Company who are financing the construction of the new club house. We shall soon be asking for members’ contributions like levies towards the furnishing project. We shall also be utilising some of the resources at our disposal to raise funds for this project.
Our migration to the new club house calls for attention as to how we shall manage the new expanded facility. This includes the need for more competent and better qualified staff to add to or substitute what we have. To this end, the MC has carried out a detailed audit of our HR resources and made recommendations for action. We shall soon be implementing the appropriate HR changes to address this issue. I can assure you they have been well thought through and documented. We shall implement them without fear or favour and professionally. We intend to introduce a work smatter and think better culture in our HR management to address the bloated payroll we are currently carrying.
The MC has examined the Club membership numbers and is now nearly able to distinguish with some certainty the various categories of members including those that have been idle for ages and possibly even some that may be on our members register irregularly. The next step will be to engage the members accordingly to ensure that their membership adds value to them and the club. The MC will also be carrying out a membership drive to boost the membership base taking advantage of the new club house as a key selling point. It is expected that this exercise will result in better revenue generation for the club. Note that, presently our club is actually making do with a shoe string budget. We are literally on a wing and prayer having inherited a poor state of financial affairs that was caused by many recent capital expenses and losses made in the business in the preceding financial year as reported in the accounts at the AGM. We inherited some liabilities such as trees that were allegedly sold by the MC in place in 2005. The current MC is addressing this matter on a case by case basis. We will communicate any outcomes as necessary.
The matter of our land registration has been a bane for the club for many years gone by and money wasted on trying to resolve it. I am glad to report that the MC has finally fingered the stumbling blocks and we are addressing this with a view to resolving this very important matter, hopefully by the end of this year, all things being normal and equal. This is a key objective and deliverable for the MC.
On communications: We are determined to keep our members informed via all available channels. I may reiterate that for us nothing is too big or too small to handle providing that it is not in the direction of mere gossip, innuendo or empty rumour mongering. You have seen the Chairman’s memos before, you have received emails and you continue to see an active website. We have developed and adopted a communications strategy that will soon result in other products including a newsletter which is under development.
With the ongoing club house construction, our car park has more or less been lost. We have been able to get the MoPW to assist us with equipment to create more space and we have plans to enhance this in due course using the same resource.
Our eight rooms provide affordable and quality accommodation with excellent meals in Kakamega. The MC is working on boosting bed space occupancy ratios that have of late been weak due to several factors which we believe include the disruption caused by the ongoing construction and the general economic downturn in the country. I urge all our members to act as our ambassadors and salesmen for our rooms. They are a vital source of revenue for the club.
Though a very small step and you may not have noticed it, the MC has now introduced mugs instead of cups to serve tea. We have also recently been able to stock the bar with more and appropriate glasses so that you are not served your favourite whisky or brandy in the wrong glass. We wish to maintain standards that are commensurate with our club status. That is what we are – a members club. Please expect more changes in this direction in the days and months ahead.
Golf forms a key part of the club’s activities. Unfortunately we have been starved of tournaments most of the year 2011. The Golf Captain who is the KGU recognised person in the golfing arena for our club has been asked to be more aggressive in securing tournaments. We understand that our nearby neighbouring clubs have advantages over us but we should still be able to secure our own tournaments. I urge our members to make their contributions to get more action in the golfing area. The smooth swing news is that our golf course is in great shape at the moment and that in itself is reason why we must succeed in getting more tournaments. Heading to November and December we are already assured of two tournaments but we need more. We have carried out a thorough audit or diagnosis of all our golf equipment and have a list ready for action. The plan is to repair them in order of priority depending on availability of funds. We do not want to overwork the new equipment in case they break down and lead us into limbo again. Meanwhile we have put in place a golf course maintenance regime aimed at keeping the course in sound shape whilst also saving on the fuel budget. This has in the past been a runaway spend area.
One area where the MC is paying a lot of attention is finance management. In this regard, the MC is about to launch two key innovations namely, a quick books accounting system for all our business operations and a voucher system to replace the current difficult and confusing money wasting cash sales system.
On quick books we have installed the necessary hardware, captured data up to September 2011 and completed work on the back office. We aim to complete the front office installation and migrate to the system by the beginning of November. This has been a necessary capital spend that will be of use to the club for many years to come. Going forward, it is expected that the MC will now be discussing our business operations and management based on the right platform with proper management accounts every month. We should be able to track performance and seal any loopholes that may ensue.
On vouchers: We have been to Nyanza Club to pick lessons on how they are managing the system. The outcome is that, this is a user – friendly, quick fix solution with least cost and yet much added value. It helps to avoid the ever infuriating and loss leading activity of cash dealing at the bar and other areas of the business. We will be implementing the voucher system at Kakamega Sports Club with effect from early November 2011. I would appeal to all our members and their guests to please render their utmost cooperation to make this change – over a success. We should avoid situations where we may be forced to post some of our members for failure to pay their bills. We will give strict instructions to staff to render service and get payment or they may face penalties. The ideal solution for a cashless system is complete IT migration such as exists at other clubs but the cost of this is a hindrance to us at the moment. Going forward, this is where Kakamega Sports Club aims to be. The voucher system is therefore only a precursor of other things to come funds permitting.
On procurement: In due course we shall set in place a procurement system that aims to avoid last minute unplanned and opportunistic purchases whose side outcome has always been a loss of club revenue. The quick books programme that we are due to roll out will among others, help us in setting up the new procurement system. Watch this space. I am keen that we do all we can to set in place a transparent and accountable management system at our club to save money, introduce efficiency and modernise the way we work. It is the only way to go and I am happy the whole MC team is reading from the same page on this key issue.
Overall, we are working on all ways and means to strengthen the club’s revenue base and grow the business focussed on the three pillars of Innovation, Change and Development. Our new club house provides us with an excellent opportunity and anchor to grow the club, raise its profile and truly set it in its place for the 21st century. It is an opportunity we cannot afford to miss. The future for Kakamega Sports Club can only be bright. We need the support of our members and all our patrons to achieve this. The Management Committee under my Chairmanship is dedicated to ensuring we succeed. Our Club vision, Go West, Grow and Enjoy continues to inspire us.
Message To Our Members From The Chairman – 3rd August 2011
On behalf of the newly elected Management Committee, I would like to thank all our members for the honour they have bestowed on us by giving us the opportunity to serve our Club for one year. The election held last month was conducted peacefully and in accordance with our Club constitution. Losers and winners alike left the election hall satisfied with the results and resolved to support the new MC to carry out its mandate. I, on behalf of my MC colleagues wish to assure you that we are ready and willing to serve and to deliver. With your support and encouragement.
Following the election the MC has since held its inaugural meeting and agreed the modus operandi for running the affairs of the Club. We have also co-opted two members as allowed by the constitution to strengthen our ranks and give the MC an appropriate balance. We have also agreed our priorities going forward. Underpinning this is the clarion call for the MC to work as a team and be seen to be doing so.
The following organisational / management structure was adopted in order for the Management Committee to be able to function effectively, efficiently and productively for the benefit of the Club, its members and business clients. Club members are our top priority for you are the main stakeholder and underwriters of Kakamega Sports Club – a MEMBERS ONLY CLUB.
We promise to be totally transparent and accountable in all that we do for the Club. We will avoid conflict of interest in our decision making and dealings with the Club. We will be engaged and communicative with our members. We will be bold and forward looking in the pursuit of our goals. And we will not be easily put down by title tattle and shenanigans. Ours is to deliver on the needs of the Club and serve you our members not to be held hostage by uncalled for side shows. We shall listen and take on board good ideas and act on them depending on their value, their relevance, our resources and our master plan. We shall only act in the best interest of the Club.
We intend to deal with management issues and address our challenges in a planned deliberate and strategic fashion aiming to avoid unnecessary fire fighting. Hence why we agreed to start off by looking at our master plan and change / reaffirm it as necessary. I appeal to our members to give us support. I call on our members without any distinction as to status or any other feature to meet all their obligations which include; payment of their annual subscriptions, payment for services rendered and supplies consumed, respect and honour for Club rules and etiquette.
The MC has adopted the following structure composed of working Sub Committees. Please feel free to contact me or any member of the MC for further information should you need it. Please also note that these Sub Committees and their members should ideally be your first port of call for issues based on their relevance to each docket.
Finance and Procurement Sub Committee
Key roles:
Composition
Treasurer – MR CHARLES OMEGA – Head of Team
MC Member – MR RASHID NASSORO – Deputy Head of Team
Chairman or his Vice MR SHABANJI OPUKAH or MR LOGAN BUSOLO –
Hon Secretary – PROF EGARA KABAJI
Wines, Catering, Entertainment and Accommodation Sub Committee
Key Roles
Composition
Wines member – MR LINUS OBUTU – Head of Team
House / Entertainment member – MRS LYDIA MADETE -Deputy Head of Team
Treasurer – MR CHARLES OMEGA
MC member – MRS LEAH LUCHIVYA
Golf Captain – MR JOSHUA ASHIOYA
Development, Human Resources and Communications Sub Committee
Key Roles
Composition
Vice Chairman – MR LOGAN BUSOLO -Head of Team
Secretary – PROF EGARA KABAJI -Deputy Head of Team
Golf Captain – MR JOSHUA ASHIOYA -
MC member – MRS LEAH LUCHIVYA
Wines member – MR LINUS OBUTU
New Club House Project Consultants – as necessary
NOTE: 1: The Development SC is the focal contact with the Project Architect / Manager and will keep members fully updated on the progress of the new club house
NOTE 2: Notwithstanding the above management proposals, our MC will function as mandated by the Constitution of the Club. All MC members must therefore fulfil their roles accordingly.
NOTE 3: The Chairman is a roving member of all sub committees and may thus attend any of the meetings and participate in deliberations as may be opportune and / necessary. All the SCs are subordinate to the MC.
Going forward, the MC has determined that the following are the key areas to focus upon immediately.
Thank you –
SHABANJI OPUKAH
Chairman
NOTE: My team of the Management Committee is composed of the following:
