Behind the Curtain: Why Strong Governance Makes or Breaks Private Clubs

Many private clubs are constantly updating facilities, investing in new amenities, and revamping their online presence. These visible improvements are important, but according to Joe Abely, they’re often a distraction from the root of the problem. When a club underperforms, it's rarely because of outdated décor or a lack of pickleball courts. It’s more often tied to something harder to see and trickier to fix: governance.

As Executive Consultant at Club Benchmarking and lead author of the 2025 Club Benchmarking Governance Report, Joe Abely has spent years studying what makes clubs thrive—or stall. Drawing on data from over 400 clubs across North America, he’s identified three essential pillars of long-term success: effective board education, succession planning, and strategic planning. These aren’t flashy pillars, .but they’re the difference between a club that just functions and one that flourishes.

In a new episode of Crushing Club Marketing, Joe joins Ed Heil for a conversation that gets to the heart of club leadership. The message is clear: if you want to build a stronger future, it starts at the top. It starts with your board.

The Problem Beneath the Surface

From the outside, many clubs appear to be thriving. The tee sheet is full, dining is busy, and a capital campaign just wrapped up. But beneath the surface, cracks may be forming. It’s not always in a large way, but they can be seen through member discontent, leadership friction, or confusion about long-term direction.

Joe sees this all the time. “There’s a tendency to patch over problems rather than address the root cause,” he explains. One of the most consistent issues is a lack of continuity and clarity at the board level. Without a thoughtful succession plan, leadership can turn into a revolving door. And when new board members come in without orientation or context, it’s impossible to maintain momentum.

According to the 2025 Club Benchmarking Governance Report, only 22% of clubs surveyed believe their board education process is effective. Even fewer conduct regular board evaluations or have a formal succession planning framework in place. In the absence of these guardrails, well-intentioned leaders often default to short-term thinking or get caught in operational details instead of strategic oversight.

Joe says it’s like running a business without a leadership development plan. “You wouldn’t promote someone to CFO without training. Why do we put people in charge of multimillion-dollar clubs without preparing them?”

From Treehouse Clubs to Strategic Boards

As Ed put it during the conversation, some club boards are still run like “treehouse clubs.” It’s a telling metaphor—evoking a sense of informality, exclusion, and unstructured decision-making. These are boards where elections are popularity contests, where club politics drive decisions, and where no one’s quite sure what the bylaws actually say.

It’s not that these boards lack passion. In fact, the problem is often the opposite—board members care deeply about their clubs. But in the absence of structure, that passion can manifest in micromanagement, inconsistency, and reactive leadership.

Joe advocates for a more disciplined approach. That starts with two key shifts: allowing board members to serve up to two consecutive three-year terms, and embedding education into the board experience from day one. “It’s not enough to hand someone a binder of policies,” he says. “You need to help them understand their role—how to think strategically, how to empower the general manager, how to prioritize the long-term vision.”

It’s also about changing how clubs populate their boards. Instead of relying on volunteers or last-minute nominations, Joe encourages a pipeline approach—identifying potential leaders early through committee involvement and mentorship. “The best boards are built, not elected,” he notes.

Data, Tenure, and Trust

While governance can seem abstract, the impact is real. The 2025 Governance Report shows that clubs in the top 25% of financial performance consistently share key characteristics: strong strategic plans, empowered general managers, and a culture of education. These clubs are far more likely to report effective board behavior, and their results speak for themselves.

Perhaps the most telling data point involves general manager tenure. Joe’s team found a direct correlation between GM longevity and board effectiveness. In clubs where the GM had been in place for five years or more, board performance scores—and financial results—were significantly higher. Stability at the top would seem to foster alignment, trust, and long-term thinking.