The Key to Successful Club Governance: A Discussion with Experts Denise Kuprionis and David Chag

"The seven most dangerous words in the English language are 'We've always done it this way.'" - Denise Kuprionis's pointed observation cuts to the heart of why many private clubs struggle with governance and organizational effectiveness today. Just because it was a good practice 50 years ago doesn’t mean it’s still effective today.

These days we all want more accountability and transparency from our leaders and it’s no different in clubs. At the same time, many clubs find themselves operating with outdated governance models that no longer serve their evolving needs. In this episode of Crushing Club Marketing, Ed Heil and governance experts David Chag and Denise Kuprionis, partners at The Club Council, revealed several critical insights for club leaders looking to address dysfunction in their clubs.

Evolving Beyond Operations-Focused Boards

One of the most significant shifts needed in many clubs is moving away from boards that micromanage daily operations. In many clubs, the General Manager merely follows the instructions of the board and its president rather than running the club as its CEO. As Kuprionis notes, "In the old days, club boards were very involved in operations. Clubs are now moving away from that and moving to a true governance role." This evolution requires clearly defining roles - the board provides oversight and strategic direction while the GM/CEO handles operations.

Building Trust Through Communication

There’s an old saying that with a lack of information, people are left to create their own story, and it’s never good. David Chag emphasizes this point saying that transparency is crucial for maintaining member trust: "If they don't hear anything, they begin to speculate. They begin to talk at the cocktail bar, they talk in the locker rooms or on the golf course about what they think is happening rather than what is happening." Progressive clubs are investing in dedicated communications resources to keep members informed and engaged.

Creating Effective Board Processes

Are your board processes clearly defined? Does your club have a documented process for how it recruits new members? Are there set requirements that are communicated to board candidates? The foundation of healthy governance begins with structured succession planning. Rather than scrambling to fill board positions at the last minute, leading clubs maintain an ongoing, year-round process that focuses on identifying people with diverse skills and perspectives while considering next-generation leadership needs.

Meeting management has also evolved significantly, thankfully. Forward-looking, strategic agendas have replaced operational updates that often find their way down a rabbit hole of issues. Materials are distributed in advance to ensure productive discussions and hybrid participation options make it easier for all members to engage in meetings with minimal disruption in their days.

Education plays a vital role in board effectiveness. Comprehensive orientation programs help new directors understand their roles, and Denise and David promote the idea of a “board buddy system” to help ease the transition. Ongoing education keeps directors informed about industry trends and best practices.

Regular Governance Review

While bylaws may not need complete overhauls, clubs should conduct annual governance reviews to ensure their practices remain current. This includes updating board policy manuals (assuming your club has one!) and ensuring alignment between bylaws and actual operations. Over time, good practices get “loose” and that’s where the trouble can begin. In many cases, clubs are too close to the “issues” so engaging external expertise who offer an objective assessment of governance practices is a good idea.

Denise and David suggest starting small - perhaps with a half-day retreat - to evaluate current practices and identify areas for improvement. The goal isn't to point out what's broken or blame past club leaders, but to make good practices even better. In their work, they see most clubs operating with the best intent but could use an outside perspective when searching for areas of improvement.

As David Chag notes, "Best governance doesn't just happen. It has to be a process. It's got to be something that someone owns." For clubs serious about organizational health and club culture, this means designating clear ownership of governance processes and making it a regular part of strategic planning.

There has been no better time for private clubs with 50% still enjoying a waitlist, riding the wave of the COVID boom. However, clubs that want to capitalize on these “good times” and thrive in today's environment need governance structures that support transparency, efficiency, and strategic thinking. Those who cling to "we've always done it this way" risk falling behind in an increasingly competitive market for members' time and resources.