The Brave New World of Online Voting

If the noise associated with the 2020 and 2024 national elections is any indication, there is no shortage of public distrust of electronic voting systems, which have been around for more than six decades, starting with the use of punched card systems.

Claims of stolen elections, instances of voter fraud and reports of malfunctioning equipment have contributed to the skepticism of electronic voting in general and online voting in particular—a skepticism likely shared by many club members. Even so, there are sizeable benefits to online voting that qualify for consideration by the club’s leadership. Moreover, there are policies and practices that significantly increase the reliability and accuracy of online voting.

Benefits of Online Voting

Greater Member Participation in Elections. Rather than being required to attend a meeting and fill out a paper ballot, members can access an online ballot at their home or work and complete the process in minutes rather than hours. Once the vote is submitted, members receive a virtual confirmation assuring them that their vote was tallied. Higher voter turnout means higher levels of engagement by members, resulting in a more accurate indicator of the entire membership.

Potential Cost Savings. Online voting can be less expensive since the avoided cost of printing and mailing election materials and ballots is often more than the fees incurred from the online voting platform vendor. There is also the benefit of fewer staff hours handling materials, processing ballots and tabulating results.

Secure Platforms. There are several well-tested, trusted internet platforms for online voting available to support club member votes. The platforms have easily implemented processes with the necessary security checks to authenticate voters. They also leave audit trails to allow for validating results.

Speed and Accuracy of Results. Once the election is closed, results are quickly tabulated and certified. Not only does this save time and resources, it also eliminates the human error that may occur during a manual vote count. Depending on whether demographic data are collected with the vote, the online platform can provide demographic segmentation while maintaining voter anonymity, thereby giving club leadership information about how opinions vary by demographic.

Selecting an Online Voting Systems Vendor

Important factors to consider when selecting a vendor may include:

  • Ensuring you understand what is included in the service and the associated cost, so you can compare “apples to apples” with other vendors.
  • The reliability of processes for protecting the confidentiality of data.
  • The process for integrating written ballots if the vote is not entirely online.
  • The ease of voting, i.e., the clarity of the process and the likelihood of errors from members who are not tech savvy.
  • The results of interviewing references, i.e., feedback from clients with similar member profiles who have used the online platform.

Considerations

There are several factors that must be considered when planning and preparing for an online vote. They include:

Aligning Bylaws. Club bylaws will need to be reviewed as they typically cover voting requirements, which may need to be amended to permit online voting. Bylaws also specify the timing of annual meetings, notification lead times, publication of the slate of candidates, and policies related to proxies, e.g.:

  • Proxy requirements and the format of proxies, g., general proxies vs. directed proxies.
  • Critical timing requirements and limitations on when proxies can be collected and the deadline for submitting a vote.
  • Explicit requirements to issue paper notices, ballots, or
  • Specification of who is authorized to administer, issue or receive proxies and ballots.

Election Planning. Vendors specializing in online systems for private clubs will offer support and guidance on the logistics and technical aspects of conducting the online vote. However, it is incumbent upon club leaders to develop and execute a plan to educate members about the process. As mentioned above, there will almost certainly be bylaws that need changing. Because amending the bylaws at most clubs requires member approval, it is critical that members be comfortable with and supportive of the proposed voting process. Be transparent with the plans to use online voting and provide multiple means to communicate to and hear from members, e.g., email messages, town hall meetings and focus groups. Ensure the involvement of legal counsel both in the drafting of amendments to the bylaws and in assessing the risk of legal action by a member.

Your plan may be to start with a hybrid approach where members are given a choice of using a paper ballot or voting online. Although the hybrid approach adds a degree of complexity to the process, it may address concerns from members who are leery of online voting. Moreover, the results from the initial use of a hybrid approach will provide a gauge of the percentage of members who choose to use a paper ballot instead of online voting. If the percentage of members using the paper ballot is low—say in the single digits—it may be appropriate to require that all votes be registered online.

The Leap to a Brave New World

Even though a hybrid approach may have a certain political appeal, we recommend a change in the bylaws that specifies the use of online voting only. Members today are more technologically savvy than ever and will continue to rely on electronic devices to complete everyday tasks. Accordingly, we believe member resistance to going completely online will be modest. However, don’t presume a zero-member pushback. Put together a plan for two-way communication with the members, including special training for members who do not have access to a computer or the inability to use it to register their vote. Finally, ensure your plan has competent legal review, and move forward to realize the full benefits associated with online voting.

This piece was published in the National Club Association‘s Summer 2023 Issue of Club Governance. 

Online Voting, Explained

The Covid-19 pandemic accelerated digitization across many sectors, inspiring many to wonder: why didn’t we do things in this way before? This is indeed the case for electronic voting. Many clubs implemented electronic voting, albeit by necessity, to navigate complex challenges brought on by the pandemic. However, electronic voting is still relatively immature within the club industry. If you are curious about electronic voting, we answer five common questions that help to paint a clearer picture of electronic voting.

Why do online voting?

With the option of electronic voting, participation rates traditionally increase. Instead of needing to attend a meeting and fill out a paper ballot, members can access the ballot at home on their computer or at work on their phone. Voting can be completed in minutes and members receive a virtual confirmation assuring them that their vote was tallied. Higher voter turnout means higher levels of engagement among your members, and a simpler democratic process.

If planned properly, online voting can also be much more cost-effective. Your club can save on printing and mailing costs that would not be required through an online platform. It can also allow your club to allocate time and human resources to other areas of club operations.

By moving ballots online, elections are transitioned to a safe and secure platform, used routinely by private organizations and corporations. Online voting allows an ongoing audit trail that virtually eliminates the potential for human error which would not exist with paper ballots.

Online voting is customizable and implementing changes to your election is simple. The online voting system can be set up according to specifications provided by your club. This includes branding the voting website, ballot loading, preparation and loading the list of voters, and managing authentication of voters. When it comes time to vote, a mass email is distributed to all electors with a direct link with unique authentication credentials encrypted into it, making it easy for the member and safe for the club. Once the vote has been completed and the results are analyzed, online voting provides clubs with faster and more accurate tabulation of results, saving the club time and resources. The online platform also allows for further demographic segmentation while maintaining voter anonymity.

Do our bylaws align with online voting?

When first adopting an online vote, many clubs notice that their bylaws make it complicated to shift their voting to an electronic platform. Most clubs’ bylaws were written before the introduction of online voting, and therefore, may not adequately account for it. Just because a club’s bylaws or state statutes do not restrict a club from conducting a vote online, it does not mean their bylaws are optimal for doing online voting. Although many clubs are technically permitted to conduct online voting, their bylaws may prohibit them from doing so in an efficient and logical manner.

Typical barriers and bylaws that may interfere with a smooth online voting process may include:

  • Proxy requirements and the format of the proxies, i.e., general proxies vs. directed proxies.
  • Critical timing requirements and limitations on when proxies can be collected and when voting must occur.
  • Explicit requirements to issue paper notices, ballots, or proxies.
  • Specification of who is authorized to administer, issue, or receive proxies and ballots.

So, what is a club to do?

A change to your bylaws may be required. To successfully implement online voting, advisors can help clubs identify the required changes to their bylaws that are more compatible with online voting.

Who will be responsible for planning the vote?

Elections vendors offer support and guidance on the logistics and technical aspects of how the voting will occur. Votes require strong leaders/leadership team to plan and coordinate various aspects of the vote, such as communicating with members, producing meeting notices and information circular packages that are cohesive with the online voting process. Involving the club’s legal counsel is always advisable to ensure compliance with bylaws, state statues, and any other important requirements.

How should members be prepared for online voting?

It is recommended to initially implement online voting for a ‘low risk’ vote, such as an AGM vote where there are no polarizing motions or elections tabled. Although hybrid votes can be more complex, when they are set up appropriately, they can be a good first step for members to become familiar with the process. For example, in a simple vote with no proxies, members could be mailed a paper ballot or be given the option to vote online. The outcome of how many people elect to vote online vs. by paper can provide you with a good gauge on what your members are comfortable with. You can also observe turnout from other online engagement efforts, such as member surveys.

What vendor or service should I use for online voting?

There are many vendors, each of which excel at different aspects. Important factors to consider when selecting a vendor may include:

  • Budget
  • Structure: whether the vote will be a hybrid vote or exclusively online.
  • Vote requirements: will the voting experience need to be integrated with the technology being used to run the meeting via video?

Ready to implement electronic voting for your next vote?

To learn how our online voting program will benefit your organization, contact martin.tzankov@ggapartners.com

Mid-Year Predictions for the Second Half of 2021

At the start of the new year and in the spirit of planning, the thought leaders at GGA Partners sat down to predict what we believed to be coming throughout the year and shared our 2021 Predictions on the Shape of the Next Normal. Now, halfway through 2021 with the spring season in the books and summer underway, we reconvened GGA leaders for a mid-year check-in on predictions for the latter half of the year.

1. Ensuring fair and equitable access to amenities remains top of mind, especially on the golf course

A trending topic throughout the industry is golf’s demand surge and how long it will sustain, much has been written on this point and those who are closely watching rounds played metrics anticipate a clearer reading by the end of the summer.

Stephen Johnston, GGA’s founding partner, expects that private clubs will see the surge continue to elevate rounds played by members which will likely increase issues relating to compaction of tee traffic and accessibility.  He predicts the benchmark regarding average number of rounds per member to be higher by approximately 10% following the pandemic and also increased golf course utilization by members’ spouses and family members.  Both factors will create a greater demand for tee times at private clubs.

Johnston believes some clubs may need to consider permitting round play by fivesomes instead of foursomes, potentially catalyzing logistical challenges such as a greater need for single-rider power carts in order to maintain speed of play at the same rate as foursomes with all players using power carts. For club managers and course operators, this entails an increased need for current and detailed evaluation of the benefits of membership and the relationship between playing privileges and the practical ability to book a tee time and get on-course.

2. Effective demand management is key and will shift from agile, flexible approaches to new operating standards as demand stabilizes

During the pandemic and throughout 2020, many golf, club, and leisure businesses recognized the increased need to more accurately and routinely measure the utilization of amenities, adapting operations management to react quickly to change.

Craig Johnston, head of GGA’s transaction advisory practice, anticipates an evolution in this one-day-at-a-time, agile monitoring approach into a new and more formalized standard of operating procedures.  “At the start of 2021, we said we would see clubs provide flexibility and experiment with various operational changes,” he explained.  “With the pandemic feeling like it’s steadily moving toward the rear-view mirror, members will be expecting clubs to begin instituting the ‘new normal’ operations and the data compiled by clubs in the first half of the year will be critical to deciding on the new normal.”

Johnston believes that membership demand will continue to be strong through the second half of the year and that it is likely utilization will reduce marginally as members begin travelling again for work and social obligations.  Even with a marginal reduction in utilization, demand for private club services will remain strong and will continue to put pressure on capacity and access in most clubs.

Senior Partner Henry DeLozier encourages club and facility operators to embrace short-term continuations of high demand while keeping an eye on the future and the non-zero probability of a demand shift in the coming years.  “Clubs must create pathways to sustain demand while navigating utilization volume.  It is unwise to place hard or irreversible limitations on capacity while clubs are at historic maximums for demand and usage,” cautioned DeLozier. “Clubs will do well to establish a clear understanding of demand and utilization to enable innovative programs which serve to fill periods of low demand in the future.”

3. Ongoing uncertainty about the pandemic’s long-term impact on club finances will increase the review and reevaluation of club financial projections to ensure sustained budget flexibility

While data regarding utilization, participation, and engagement throughout the summer months continues to be captured and consolidated, business leaders should not delay their financial planning and instead get to work on reevaluating finances and updating their future forecasts.

“Now is the time to review, evaluate, and reset club debt levels,” emphasized Henry DeLozier. “Clubs need to recast financial projections based upon elevated joining/initiation fees arising from high demand.”

In support of alacrity in financial planning, DeLozier notes that labor shortages spurred by the pandemic will increase payroll-related costs at a material level. He also predicts that comprehensive risk review is needed at most clubs to evaluate possible impacts arising from cyber-crime and/or declining club revenues during 2022.

Beyond internal shake-ups in utilization or operations, club leaders should be anticipating external impacts that could impact their financial plans.  A hypothetical example raised by DeLozier is if the U.S. economy were to become more inflationary.  In such a circumstance he believes clubs would see an increase in the costs of labor and supplies which would necessitate increases in member dues and fees, a deceleration of new-member enrollments as consumer confidence dips, and a slight slow-down in housing demand.

Right now, uncertainty remains with respect to the virus as well as the resulting economic impact from the pandemic. From a financial standpoint, clubs will do well to advance their forward planning while retaining budget elasticity.  “It will be imperative for clubs and boards to build flexibility into their budgets and agility into their operations,” added Craig Johnston.

4. Existing governance practices, policies, and procedures will be revisited, refurbished, and reinvigorated

A litany of new ways of operating and governing the club arose as a result of the pandemic, some of which suggest an efficacy that can be sustained in a post-pandemic environment.  Essential to assimilating these adaptions into new standards of procedure is a review of existing governance practices and the documentation which supports them.

“At a time when boards can measure the full range of financial performance metrics, updating club governing documents is a primary board responsibility,” noted Henry DeLozier.  “Board room succession planning must be formalized to prepare clubs for the inevitable downturn from record high utilization.”

In considering the nearly overnight adoption of technology tools to enable remote meetings and board-level deliberations, partner Michael Gregory noted a substantial increase in the use of technology tools that go beyond virtual Zoom meetings.  “The pandemic has allowed clubs to test online voting,” he explained.  “For many clubs, once things return to normal, their bylaws won’t allow for the continued execution of online voting unless they make changes.”

“We have seen the adoption and implementation of online voting to be a huge success for the clubs who have tried it for the first time,” said Gregory. “Members love it, it’s easy, it’s convenient, it leads to higher participation from the membership, and many clubs are in the process of changing their governing documents to allow for online voting as a result.”  The challenges and opportunities of employing online voting are detailed in our piece on taking club elections digital, which features a downloadable resource that can be shared among club boards.

5. In human resources, expect to see deeper reevaluations of compensation structures and employee value propositions

Weighing in from across the pond, Rob Hill, partner and managing director of GGA’s EMEA office in Dublin, predicts that club leaders will face bigger challenges in human resources throughout the remainder of 2021.

The first of three particular items he called out is a reevaluation of compensation.  “Making decisions about employee pay is among the biggest challenges facing club leaders in the wake of the coronavirus shutdown,” stated Hill. “As they begin compensation planning for the rest of the year and into 2022, these leaders not only have to consider pay levels, but also the suitability of their mission and operating model to thrive in a post-pandemic world.”

Citing his recent experiences in the European market, Hill shared that club leaders are challenged with finding new ways to operate smarter and more efficiently, while also looking for innovative ways to implement sturdy, low-cost solutions that their employees will love.  Which leads to his second point, that there will be a renewed emphasis on what employees love and how clubs, as employers, can provide an enhanced value proposition for their employees.

“As employees get back to work onsite, employers are finding that what their people value from the employment relationship has changed,” Hill explained.  “Where pay has been viewed as largely transactional in the past, clubs may need to provide new types of benefits, especially programs that provide more flexibility, financial security, and empowerment to retain and motivate their people.”

Lastly, there is likely to be considerable movement of talent over the coming year brought on by employees’ new work-life ambitions and financial imperatives, said Hill, “As demand for their skills and experience grows, the very best talent will seek out employers that demonstrate they view employees not as costs but as assets and reflect this in their approach to compensation.”

Recalling our start-of-year prediction that the movement of people and relocation of companies will reshape markets, partner Craig Johnston added, “The relocation of people continues to be a prominent trend and one that is likely to continue in the second half of the year.”  For club employers, it’s not just the changing physical locations which impact the cost and supply of labor, but also the expectations of employees as they seek out competitive new roles and work experiences.

6. The repurposing and reimagining of club facilities, amenities, and member-use areas will continue

The pandemic pushed to the fore the need for clubs to adapt their facilities to match changes in the ways members use and enjoy their clubs.  A combination of practical evolutions for health and safety and circumstantial evolutions drawn from widespread ability for members to work remotely created increased desire for clubs to offer more casual outdoor dining options and spaces to enable members to conduct work while at the club.

Partner Stephen Johnston believes these sentiments will continue to near-term facility improvements at clubs.  “With more flexibility in the workplace and members working from home periodically, there will be a need at the club for members to do work or take calls before their tee time or their lunch date,” he said.  “It has been evident for some time that members generally prefer to enjoy outdoor dining and since, throughout the pandemic, it has become apparent that guests draw greater comfort in outdoor experiences, I see a greater demand for outside patio and food and beverage service.”

As society begins to reopen and communities begin to stabilize, time can only tell precisely how clubs will continue to evolve their operations, whether that be scaling back pandemic-relevant operations or doubling-down on new services and efficiencies.  Evident in our work with clients are significant efforts to reorganize club leaders, reevaluate operations, and retool plans for a successful future in the new normal.  Here are a few highlights of efforts clubs are making for the next normal:

 

  • Reinvigoration of governance processes and engagement of leaders to ensure alignment between boards and club strategic plans.
  • Renewed surveying of members to keep a pulse on how sentiments have changed from pre-pandemic, during pandemic, and currently as communities stabilize.
  • Enhanced adoption and application of electronic voting as clubs reevaluate membership structures, governing documents, and operating policies amidst “displaced” members.
  • Reconfiguring of budgets, capital plans, and long-range financial models.
  • Refinement and advancement of membership marketing strategies, tactics, and materials.
  • Tightening relationships between facility planning, capital improvements, and member communications campaigns.
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