Governance vs. Leadership in a Private Club: Understanding the Distinction and Building Excellence

Success in private clubs depends on the seamless interplay between two distinct yet interconnected elements: governance and leadership. While both aim to advance the club’s mission and enhance the overall member experience, they operate at different levels, with different responsibilities, perspectives, and required skill sets. 

Misunderstanding these roles can lead to operational inefficiencies, blurred authority, and even member dissatisfaction. Conversely, when governance and leadership function in harmony, the club benefits from a clear vision, strategic alignment, and operational excellence.

Understanding these differences between governance and leadership are keys to success. Questions to ask yourself, what are the core responsibilities of each, and what defines the qualities that make governance and leadership effective?

Defining Governance in a Private Club

Governance refers to the framework by which a private country club is directed and controlled. It is the responsibility of the board of directors, elected by the membership, to represent the members’ collective interests and ensure that the club operates in a manner consistent with its mission, bylaws, and long-term vision.

Core responsibilities of governance include:

1. Strategic Direction
   Establishing the club’s mission, vision, and long-term goals.
2. Policy Development
   Creating policies that guide club operations without micromanaging daily activities.
3. Financial Oversight
   Ensuring fiscal responsibility, approving budgets, and monitoring capital planning.
4. Accountability to Members
   Acting in the best interest of all members, not individual agendas.
5. Hiring and Supporting the General Manager
   Selecting a qualified chief executive to lead the club operationally and empowering them to execute the board’s vision.

Governance focuses on what should be accomplished rather than how it is done. It is a high-level role that requires objectivity, strategic thinking, and commitment to fiduciary duty.

Defining Leadership in a Private Club

Leadership in the private club setting primarily resides with the General Manager (GM) or Chief Operating Officer (COO), along with the senior management team. Leadership is about execution. It is turning the board’s strategic goals into actionable results and ensuring exceptional service delivery to members.

Core responsibilities of leadership include:

1. Operational Management
   Overseeing all day-to-day club functions, including food and beverage, golf operations, agronomy, events, and facilities.
2. Team Development
   Recruiting, training, mentoring, and retaining a high-performing staff.
3. Member Experience
   Ensuring services and amenities meet or exceed member expectations.
4. Financial Management
   Managing budgets, controlling costs, and ensuring sustainable operations.
5. Communication
   Maintaining open, consistent, and professional communication with both the board and members.

Leadership focuses on how the club operates to achieve the board’s defined objectives. It is action-oriented and member-facing, requiring adaptability, problem-solving, and people skills.

Key Differences Between Governance and Leadership

While governance and leadership are closely linked, the distinctions between them are critical to maintaining a healthy club environment.

When these two areas blur, problems begin. When boards get involved in day-to-day management or when managers overstep into policy-setting, this will result in confusion, inefficiency, and strained relationships.

What Makes Good Governance in a Private Club

Good governance is more than simply following bylaws or holding regular meetings, it is about creating a disciplined, respectful, and strategic approach to guiding the club.

Characteristics of good governance include:

1. Role Clarity
   • The board understands its role as a policy-setting and strategic body, leaving daily operations to the GM and management team.
   • Board members avoid micromanagement and instead focus on big-picture objectives.
2. Strategic Focus
   • The board spends the majority of its meeting time discussing long-term planning, member value, and future positioning of the club.
   • The use of a rolling strategic plan ensures that decisions align with agreed priorities.
3. Effective Communication
   • Clear channels of communication between the board and GM prevent misunderstandings.
   • Decisions are communicated with a unified voice, even when individual directors hold differing personal opinions.
4. Fiduciary Responsibility
   • Board members act in the best interest of the entire membership, not special interest groups or personal preferences.
   • Financial prudence and transparency are top priorities.
5. Board Development
   • Annual orientation and governance training ensures that new and returning directors understand their responsibilities.
   • Evaluation of board performance helps maintain accountability.
6. Mutual Respect with Management
   • A professional, trust-based relationship with the GM allows for honest dialogue without fear of political repercussions.

What Makes Good Leadership in a Private Club

Good leadership is the engine that drives the member experience and operational excellence. A strong GM and leadership team can transform a club’s culture, financial health, and reputation.

Characteristics of good leadership include:

1. Member-Centric Mindset
   • The GM consistently views decisions through the lens of enhancing the member experience.
   • Feedback from members is valued, analyzed, and acted upon.
2. Operational Excellence
   • The management team ensures that every department runs efficiently and meets established quality standards.
   • Service consistency is maintained through training and adherence to best practices.
3. Staff Engagement and Development
   • Employees are motivated, supported, and provided with growth opportunities.
   • High morale and low turnover often reflect strong leadership.
   • Consistent and authentic rewards and recognition program established. 
4. Financial Acumen
   • Budgets are actively managed, and financial reports are accurate and timely.
   • Leaders identify ways to maximize revenue while controlling costs without compromising the membership experience. 
5. Problem-Solving and Adaptability
   • Leaders respond quickly to challenges, from unexpected weather impacts to sudden member concerns.
   • Flexibility allows for innovative solutions that protect both service quality and financial integrity.
6. Communication and Presence
   • The GM maintains a visible presence in the club, fostering connections with members and staff.
   • Clear communication prevents misunderstandings and builds trust.

The Interdependence of Governance and Leadership

The most successful private country clubs recognize that governance and leadership are not opposing forces, but complementary roles. The board’s strategic vision is only effective if leadership can implement it effectively. Likewise, even the most talented GM cannot succeed without the guidance, support, and authority of a competent, disciplined board.

Best practices for aligning governance and leadership include:

• Have a Strategic Plan that has been updated regularly and has actionable goals. 
• Reviewing those goals on a monthly basis.
• Maintaining mutual respect and professionalism, even when perspectives differ.

Consequences of Poor Governance or Leadership

When governance fails, it is mostly from micromanagement, lack of direction, or personal agendas. Because of this, the GM is left without a clear mandate, leading to inconsistent operations and member dissatisfaction. This can be seen at clubs that have a constant turnover in their leadership positions. 

When leadership fails, it is because of poor operational control, weak staff management, or lack of financial discipline. This leaves the board’s strategic vision remains unrealized, and member trust erodes.

In both cases, the member experience suffers, and the club’s reputation and financial stability may be at risk.

In private clubs, governance and leadership must work in concert to ensure the club’s long-term success and daily excellence. Governance sets the course, ensures fiscal responsibility, and represents the members’ collective interests. Leadership navigates the course, manages operations, and delivers the promised member experience.

Good governance is marked by strategic focus, role clarity, effective communication, and fiduciary discipline. Good leadership is characterized by operational excellence, staff engagement, financial stewardship, and commitment to member satisfaction.

When each role is clearly defined, respected, and executed with skill, the result is a thriving private country club where members feel valued, staff feel engaged, and the organization is positioned for both immediate success and a sustainable future.