Governance

Private clubs are at a defining crossroads. Demand remains strong, but the operating environment has become more complex, more regulated, more expensive, and more technologically dependent than ever before. The most successful clubs will be those that operate with the mindset of sophisticated businesses while preserving the relational, humanized experiences that members value most.

Here are the key pressures reshaping how clubs operate today and the strategic trends influencing decisions at the board, executive, and ownership levels.

The Top Issues Clubs Now Face

1. Retention and Relevance
   Clubs are no longer competing only with other clubs. They are competing with lifestyle alternatives, travel experiences, remote work flexibility, boutique fitness, travel leagues, luxury resorts and digital entertainment. Retaining and engaging members today requires consistent reinvestment in facilities, programming, dining, wellness and family experiences to maintain relevancy. Clubs must evolve continuously, not periodically.
2. Recruitment at Every Level
   From general managers to line-level hourly staff, recruiting and retaining talent remains one of the single greatest constraints on growth and service consistency. International visas, wage inflation, housing challenges and generational workforce shifts are forcing clubs to rethink how they attract, train, retain and house employees. Clubs without a proactive workforce strategy are already falling behind.
3. Capital Funding Pressure
   Clubs are balancing aging infrastructure with rising construction costs, higher interest rates and increased member scrutiny of assessments and debt. Capital planning is moving away from “projects” to long-range portfolio management, where every reinvestment dollar must clearly tie to the member experience, safety, revenue generation, or sustainability.
4. Rising Operational Costs
   Insurance, utilities, food, beverage, labor, technology, legal and compliance costs continue to outpace historical inflation models. Even with healthy demand, clubs that don’t update their financial models and implement disciplined cost controls will see margins steadily erode.
5. Leadership Fatigue and Volunteer Strain
   Volunteer leaders are more time-constrained, more risk-aware, and more publicly exposed than ever before. At the same time, professional leaders are stretched by workforce instability, rising member expectations, regulatory risk and round-the-clock accessibility. Burnout at both the board and executive levels is emerging as a real governance risk.
6. Member Behavior and Expectations
   Members today behave differently from members in the past. They are more vocal, more data-driven, more accustomed to instant responses, and less deferential to hierarchy. They are less anchored in the traditions of dignity, discretion, and longstanding prestige upon which private clubs were founded. Instead, they are more focused on individual needs, preferences, and experiences, with higher expectations for transparency and less tolerance for inefficiency.
7. Cybersecurity and Data Exposure
   As clubs collect more personal, financial and biometric data through apps, access systems, point-of-sale platforms, and member portals, cyber risk is no longer a theoretical possibility. A single breach now carries reputational, regulatory and legal consequences that can significantly damage a club’s brand and credibility. Clubs must be proactive in strengthening cybersecurity protocols, employee training, and vendor accountability to reduce exposure and protect member information and trust.
8. Public Policy and International Workforce Access
   Changes in labor law, overtime rules, tax treatment, immigration policy and healthcare obligations directly affect staffing models and cost structures. Clubs that once relied heavily on international seasonal workers are being forced to reshape workforce pipelines entirely.

Strategic Trends Shaping Clubs Through 2026

1. Clubs Will Operate More Like Data-Driven Enterprises
   The future of club leadership is evidence-based. Increasingly, boards and executives now rely on predictive financial modeling, usage analytics, member segmentation, cost-per-experience tracking and labor efficiency ratios. Decisions around pricing, access, capital investment, staffing levels, dining formats, and amenities will be driven less by tradition and perspectives and more by real-time dashboards and measurable data. The clubs that take the lead in adopting this data-driven mindset will gain competitive clarity that others will struggle to match.
2. AI Will Become Embedded in Daily Club Operations
   Artificial intelligence will move rapidly from merely being an interesting concept to become an operational necessity. In the very near future, AI will commonly support:
   -Member communication and personalization
   -Demand forecasting for tee sheets, dining, and events
   -Predictive equipment maintenance
   -Staff scheduling optimization
   -Purchasing and inventory forecasting
   -Member behavior analysis
   Clubs that fail to integrate AI thoughtfully will struggle with efficiency, responsiveness, and workforce capacity limitations. Just as importantly, club executives will be expected to understand the governance, ethical, and cybersecurity implications of AI deployment.
3. Governance Will Become More Strategic and Less Transactional
   Boards are steadily shifting away from operational gatekeeping to focus on strategy, risk management, CEO support and evaluation, capital prioritization, talent engagement, and cyber and compliance governance. While the frequency of board meetings may decrease, their strategic depth will increase. Digital governance tools, consent agendas, and continuous education between meetings will become the norm. The best boards will define their success by outcomes, not activity.
4. Human Capital Will Be Treated as a Strategic Asset, not a Cost Center
   In 2026, clubs that win the talent war will invest in leadership development earlier, provide clearer career pathways, offer workforce housing solutions, expand visa alternatives and domestic pipelines, partner with educational institutions, and improve onboarding, training, and succession planning. Boards will no longer view staffing simply as a management issue and instead recognize it as a club- wide responsibility. Talent strategy will be elevated as a defining factor in managing organizational risk and enabling future growth.
   
5. Member Experience Will Become Hyper-Personalized and Lifestyle-Integrated
   The next generation of club members does not separate wellness from recreation, dining from social connection, work from lifestyle, family from fitness or technology from hospitality. Clubs will continue to design facilities and evolve programming around multi-generational engagement, flexible membership structures, holistic wellness ecosystems, family- centered programming, social-first experiences, and technology-enabled convenience. The clubs that win in 2026 will feel less like facilities and more like dynamic lifestyle platforms. Tradition will always matter in private clubs, but it is no longer enough on its own. Clubs must now operate in an environment shaped by advanced technology, global labor dynamics, public policy shifts, rising costs, elevated member expectations, and increased regulatory and cyber risk. The clubs that thrive in 2026 and beyond will be those that are led with strategic discipline, financial sophistication, talent-centered leadership, technology fluency, and governance maturity. For club executives, the opportunity is clear: Tradition will always matter, but adaptability will determine survival.

Club Trends – Winter 2026

Thomas B. Wallace III, CCM, CCE, ECM, Partner and Michael G. Smith, CCM, CCE, ECM, Search & Consulting Executive at KOPPLIN KUEBLER & WALLACE can be reached at tom@kkandw.com and michael@kkandw.com.

A new general manager’s first 90 days often seem routine—introductions, tours, onboarding, operational briefings. But beneath that lies a rare opportunity: a moment when long-standing habits can be questioned without resistance.

This period isn’t about disruption for its own sake. It’s about recognition. A new GM sees the club as it truly is. They notice:

• Gaps between the story the club tells and the experience members actually have.
• How staff navigate competing priorities.
• Which communications feel authentic — and which do not.

Crucially, the GM has permission to ask why.

Yet too often, that window closes before this opportunity is taken advantage of. Boards push new GMs to “hit the ground running,” reinforcing old norms. And GMs, eager to prove themselves, chase visible wins instead of diagnosing deeper issues.

The first 90 days shouldn’t just be an operational handoff. They’re a strategic moment. A chance to ask whether the club’s culture and brand still align with its mission.

The Listening Leader
From KK&W’s experience, the most successful GMs begin not by acting, but by listening. By being diagnostic.

Culture reveals itself through behavior, not through policy. The most perceptive leaders look for signals of cultural health, looking for answers to questions such as:

• How does the team respond when plans change?
• What gets celebrated—and what gets ignored?
• Do staff treat challenges as obstacles or opportunities?

At one club, a GM was brought in to “modernize operations.” She quickly noticed a paradox: the culinary team produced excellent food, yet dining satisfaction was low. The issue was rhythm, not quality. Families wanted earlier meals; business members wanted quicker ones. The kitchen’s fine-dining tempo clashed with members’ lifestyles.

Instead of immediately changing schedules, she asked her team:

“If you were designing service from scratch—for today’s members—what would you change?”

The team’s response revealed frustration and, importantly, the energy to evolve. By inviting curiosity before change, she built ownership rather than resistance.

That’s the lesson: leadership starts with understanding. An incoming GM’s role isn’t to repeat a previous playbook—it’s to help the club become the best version of itself.

The Board’s Role in Setting Direction
For a club to become its best version, boards must create clarity before the new GM arrives. They should ask themselves:

• What must this leader preserve?
• What must they transform?
• Which truths have we been avoiding?

When a board defines those answers early, meaningful goals can be identified, empowering the GM to lead strategically—not reactively.

When Brand and Culture Don’t Match
While KK&W focuses inward on culture, Sussner looks outward—at the brand. A new GM often spots brand misalignment first by simply walking in the door.

Common warning signs:

• The website promises “casual elegance,” but spaces feel overly formal.
• Marketing celebrates multigenerational families, but events cater mostly to retirees.
• The tagline speaks of connection, yet communications feel transactional.

These aren’t cosmetic problems—they’re signs of identity confusion. When a club’s brand no longer reflects who it truly is, staff lose focus, members lose trust and prospects lose interest.

At one club, a rebrand around “innovation and forward thinking” failed to change the experience itself. Programming stayed predictable, spaces outdated and technology lagged. The new brand had painted the walls but not changed the foundation.

The incoming GM reframed the challenge by asking:

“What do we truly believe about the experience we want to create?”

The answer revealed that members didn’t want disruption—they wanted thoughtful evolution: honoring tradition while adapting to modern expectations. Once that truth surfaced, the club could align what it said with what it did.

This is the heart of Sussner’s 3C Framework:

• Clarity (know who you are)
• Consistency (express it reliably)
• Connection (make people feel it)

Branding isn’t a paint job. It’s the alignment of belief, behavior, and expression.

Seeing Culture and Brand as Mirrors
The most effective GMs assess culture and brand together—because each reveals the other’s weaknesses (and strengths).

Examples:

• A culture celebrates collaboration, but the brand markets exclusivity → disconnect.
• The brand promises family-friendliness, but staff are uneasy with kids → misalignment.
• Leadership preaches innovation but punishes risk-taking → contradiction.

A GM focused only on culture may fix internal issues while leaving the external story unchanged. One focused only on brand risks, polish without authenticity. But a GM who evaluates both gains a full picture—and can align strategy accordingly, authentically, and effectively.

When boards, staff and club partners work in parallel, they don’t just communicate alignment—they create it.

The Strategic Opportunity for Transformation
Too often, clubs treat GM transitions as operational events: find the right leader, onboard efficiently, and return to normal.

That mindset preserves continuity but prevents transformation.

A new GM’s arrival is one of the few moments when a club can safely ask:

• Have our members evolved while our systems stayed static?
• Do our values actually guide decisions?
• Does our brand attract the right audience?

When boards use this moment to ask honest questions—and GMs use it to listen and diagnose—clarity follows. And clarity informs everything: strategy, staffing, experience, and communication.

When culture is healthy and the brand is clear, everything becomes easier. Staff know what’s expected. Members feel aligned. Recruitment and retention follow naturally.

Leading Forward
Transitions are inherently disruptive—but disruption doesn’t have to mean instability.

Handled with intention, it’s the moment when old patterns can be examined honestly and new ones chosen deliberately.

A new GM offers a fleeting yet invaluable perspective: the ability to see the club as it truly is, before habits return. That’s why the first 90 days matter most.

In that window:

• A GM can ask questions without offense.
• A board can confront legacy habits.
• The organization can commit to evolution.

When that happens, clubs don’t just get a new leader — they rediscover, or reaffirm who they are.

The Real Question
For boards: Will you give your GM the time and clarity to diagnose before acting?

For GMs: Will you prioritize understanding before change?

Clubs that embrace this 90-day transition as a chance for alignment—not just succession—emerge stronger, clearer and more authentic.

THE BOARDROOM MAGAZINE – November 2025

This article was co-authored by Sussner, a private club member engagement firm, and KOPPLIN KUEBLER & WALLACE, a private club executive search and consulting firm.

Many individuals who serve on private club or nonprofit boards bring valuable experience from the corporate world. Their strategic mindset, financial acumen and commitment to governance are tremendous assets.

But transitioning from a corporate board to a club or nonprofit board isn’t as simple as applying familiar skills; it requires a shift in mindset and an understanding of how member-driven and mission-based organizations function.

In our work facilitating board retreats across the country, we often meet directors with extensive corporate experience who are serving on a club board for the first time. Starting with a conversation about the core differences, what we often refer to as “setting the table,” can be both helpful and eye-opening. It shines a light on what success looks like in each setting, creates shared understanding and helps build a stronger, more aligned board culture.

One of the most important mindset shifts is redefining success. Corporate boards are designed to maximize shareholder value. Club and nonprofit boards, on the other hand, prioritize member and team member satisfaction, mission fulfillment and long-term community impact.

While many club boards have borrowed tools from the corporate world, such as strategic plans, dashboards and structured committees, the return on investment looks different. At a club, ROI means member engagement, staff satisfaction and retention, not just numbers on a spreadsheet.

As we like to say, club boards operate in a uniquely feedback-rich environment. In the corporate world, directors are somewhat removed from the end user. At a club, members are your stakeholders, customers and shareholders all in one.

They experience the impact of board decisions directly and share feedback, often and unfiltered, whether at dinner, on the golf course or in the locker room. First-time club board members are often caught off guard by how passionate and personal member feedback can be.

Clarity around roles is critical to how we govern. Corporate boards typically maintain well-defined boundaries between oversight and management. In clubs, as we know, that line often can blur.

Directors may find themselves drawn into operational matters, not always out of overreach, but sometimes out of care, habit, curiosity or even boredom. Effective governance requires a clear definition of roles, trust in the general manager’s leadership and a disciplined focus on strategy and policy rather than day to-day execution.

The stakeholder landscape also shifts in meaningful ways. While corporate boards are primarily accountable to shareholders, club and nonprofit boards serve members, donors, communities and program participants, each group with its own perspectives, expectations and modes of engagement.

Club boards must navigate the diverse priorities of a passionate membership. Helping directors understand these dynamics is essential to building trust, fostering alignment and making well-informed, thoughtful decisions.

Club board composition tends to differ as well, often reflecting the member-elected nature of the role rather than a skill-specific appointment. While this fosters strong cultural alignment, it can limit professional diversity, making thoughtful recruitment and development all the more important. The most effective clubs honor that connection while encouraging a broader perspective through orientation, outside advisors or more strategic approaches to the nominating process.

Time commitment and motivation often diverge between corporate and club settings. Corporate board service tends to be structured, clearly defined and compensated. In contrast, club and nonprofit board service is voluntary and typically more hands-on.

Directors are expected to serve on committees, attend events and remain visible and engaged within the community. We often remind new directors that the true reward isn’t financial; it’s found in the impact they make, the connections they build and the opportunity to serve their fellow members.

Comprehensive onboarding is essential to building the aligned culture every board strives for. New directors should be introduced to the club’s history, financial structure, governance model and cultural expectations clearly and thoughtfully.

Real-world examples, candid conversations and support from experienced board members or outside facilitators can help establish the right tone and expectations from the start. Ongoing education through orientations, retreats, strategy sessions, webinars or peer learning further reinforces alignment and is critical to long-term board effectiveness.

In many of our board sessions, we meet seasoned corporate board members who are serving on a club board for the first time. Once they gain clarity on the differences and the unique opportunities, they’re far better equipped to contribute in meaningful ways. Clubs are certainly evolving and continue to adopt elements from the corporate playbook.

But at the end of the day, our goals are fundamentally different. This isn’t about profit margins; it’s about people. The true return on investment comes from member engagement, member and staff satisfaction, and a culture that prioritizes experience and connection. With the right education, structure and shared understanding, boards can lead with confidence and care on behalf of the communities they serve.

THE BOARDROOM MAGAZINE – September/October 2025

Marcie Mills is a search and consulting executive with KOPPLIN KUEBLER & WALLACE. She can be contacted at: marcie@kkandw.com or 833-KKW-HIRE (559-4473) ext. 719.