Читать книгу The Doing Good Model - Shari Arison - Страница 12
ОглавлениеFINANCIAL FREEDOM
The freedom (and the desire) to choose, based on responsibility and understanding of the framework of abilities and economic possibilities at any given moment.
The Knowledge and Tools to Make the Right Choices
When the value Financial Freedom came to me, it came from deep within myself. Personally, it was not an expression that I had ever heard before that point, but since developing and sharing the Doing Good Model, I have come to realize that “financial freedom” has become quite a common phrase in North America.
This vision came to me because I am always looking for ways to create positive change in everything that I do. In this case, for years I had been contemplating my controlling stake in Bank Hapoalim. What could I do to bring added value in the world of finance? Although I had managed to instill quite a few positive values in the bank when I was on its board, I felt that much more was needed in order to make a real difference in the actions of the bank and the way those actions are perceived by the public.
It has always bothered me that I was part of something that people in general seemed to hate so much. I realize some people had good reasons for distrusting or hating banks, like losing their homes, cars, or businesses, for example.
I felt empathy for people who were up to their ears with loans that they had trouble paying back. Personally, I wanted no part of this, but here I was owning a bank. I kept racking my brain to figure out how I could turn this around. Then it came to me—we could do it by creating financial freedom.
It was the perfect answer to my burning question: what good could a financial institution do for people, its employees, and its clients? The answer was to educate them on how to create financial freedom for themselves!
That’s what we set out to do: find a way to give everyone we could the awareness, the education, and the tools to make wiser choices. Our goal was to help individuals better understand their finances, their paychecks, and their actual expenses, and show them ways they could balance it all more efficiently to create their own growth and prosperity.
Financial Freedom Is for Everyone
Financial freedom is a value that is not just applicable to individuals. The concepts work just the same for families, companies, and non-profit organizations. For any person or group with financial concerns, we as a financial institution developed tools to help everyone become responsible and make the changes that need to be made. We understand that the responsibility lies on the financial institution, its employees, and the client; everyone has a part in creating positive solutions for complex problems.
Our approach to financial freedom offers a concrete way to deal with finances that has been proven to work at virtually all levels of life, whether it is personal or for business and organizations. It works because when you are mindful, responsible, and educated about what you have, then you can do the best you can with the resources you do have, be they modest or plentiful. Once you know and understand your financial situation, you can make the right decisions and choices that will open you up to a prosperous life, while living within the framework of what you have.
We have all seen the results of individuals, companies, and even countries that have not acted in responsible financial ways. The outcome and effects of their actions spin out and affect a much broader scope than just themselves. Unfortunately, these effects have created negative impacts. But your life and your business don’t have to go down that road, and this value was developed to illustrate a better path. The good news is that with proper information, education, and tools, you can reach your own financial freedom.
Changing the Mindset
So once I had this realization many years ago, I believed this vision could be a win-win. I would be able to stay true to my own personal values, while the bank could help people at the same time. But the general feeling about banks was still deeply negative. I knew people in general tend to blame their bank when bad financial things happen to them; I guess that can be easier sometimes than looking at how their own decisions might have contributed to their losses.
I also knew from experience that people don’t tend to look at banks the same way they look at other retail products or services they might purchase. It always boggled my mind that the mark-up on clothing or shoes might be 100% to 300% or more, and yet people still buy those items without a moment’s thought about the actual cost to produce and deliver the item. Yet when it comes to paying a bank for the services it provides, people very often don’t want to pay anything at all.
Clearly, we had several rather big challenges to overcome if we wanted to shift people’s thinking about this, both within the bank itself as well as in the minds of our employees and customers. I wanted everyone to benefit from the shift.
But how could such deeply held views be changed? I felt the only way to really change these views was to create real transformation and help people realize that we are all in this together. We needed to approach this as a partnership where both sides are taking responsibility; we needed to create a win-win for both the customers and the bank so we could all prosper.
That’s how my idea of introducing the value of Financial Freedom came about. My management team at Arison Investments encouraged the bank with my vision, and the bank acted on this by finding ways to translate the vision into practical education, tools, and actions for their employees and their customers. When individuals have a better understanding of their finances, they can make the best choices and decisions for themselves, their families, or their businesses.
Creating Financial Freedom
I’m proud to say that my team at Arison Investments, especially my chairman and CEO, were totally with me on this vision, and since they are also board members of the bank, they were able to instill the same kind of excitement and understanding of how important this vision really is. One of the biggest challenges at the bank was to translate the term “financial freedom” into a term that was understandable and accessible with tools for action. Implementing this concept within such a very conservative organizational culture was not an easy process, and it required engagement from all levels of the operation.
It has been amazing to see the number of financial tools that the bank has created in order to assist both the employees and clients. Seeing the growth and success, including an online education network with advanced Internet tools, has given people of all ages access to learn how to independently manage their personal and family budgets.
The bank has since extended these online tools and training sessions to include even more financial solutions that people might need for every stage of life, focusing in particular on major milestones. The bank now has tools for schoolchildren who might be getting an allowance for the first time, and for young adults who are just starting out in their careers. As they settle down, buy a home, start a family, and plan for their children’s educations and their own retirement, the bank is with them with tools and training to help them along the way.
As a logical next step, the bank also launched a new personal financial planning service that serves as a major step forward in the quest for financial independence. And even more recently, there has been incredible adoption of financial planning apps that are easy to download and use in everyday situations.
A nostalgic addition to the bank’s new branding has been the re-launch of a cartoon character that many adults in Israel knew and loved as children—a character from the 70s and 80s called “Savings Dan.” Dan has proved to be a reminder to parents and an engaging and playful character for a new generation of children, to teach them the benefits of saving money for their futures.
Another key focus for the bank has been to support small businesses, whether they are our clients or not, by creating the Small Business Initiative, with hugely successful events and programs, including a national-scale Small Business Day. More than 35,000 small to mid-size businesses participated last year, which raised awareness for their companies, and their overall sales increased by 17% on that day.
At the same time, the bank continues to deepen its community commitment, to the point that the bank, as a leader in the Israeli economy, has become one of the largest donors in the country and a major source of volunteers for non-profit organizations. The branch network gives them a way to reach virtually all parts of the country.
The branches undertake local activities in two main ways. The first is to contribute corporately to worthwhile causes, and the second is to actively encourage and support employees toward volunteerism. In particular, the bank tends to support projects in which it can integrate financial education activities into its giving, helping non-profits and community members to stay financially strong so they can keep up their good work.
From its current leadership position, the bank is able to make a huge contribution in creating financial freedom. It has taken close to a decade of steady progress since I first envisioned “financial freedom,” but now I hear endless numbers of stories of the personal impact that is being made, and not just at the bank. We at the Arison Group have implemented this value across the board in all of our businesses and philanthropic organizations.
Financial Freedom in Action: Getting Ready for Retirement
One of the stories that touched me tremendously is Ilana’s story. She has been working in the company for many years now and, in fact, has the most seniority of anyone at our main offices. She supports herself and is nearing retirement. Over the years, Ilana had different roles within our philanthropic organizations, and for the past few years, she has been operations manager for the Arison Group, supporting both the business and philanthropic sides.
I don’t usually attend the forums; however, at one particular meeting, I was invited because the forum members wanted to update me across the board on what all of the businesses and philanthropic organizations were doing to implement the first four values, namely Financial Freedom, Sustainability, Giving, and Volunteering.
It was amazing to me to see and hear all that had been done, but I was most moved when Ilana took a spontaneous stand and asked if she could share what financial freedom did for her personally.
“Anyone who knows me knows how much energy I have, how I love to check each product four times, get five price quotes, and sharpen pencils on both ends to save money for the group,” she began. “But for me, for my own finances, nothing! I know it might not look that way. I have kept my personal papers neat and tidy in folders for thirty years, insurance papers and all that, but if you asked me what it all means, I could not say. I didn’t really know.”
By this time, Ilana had our attention. She spoke so candidly and passionately. “Then I came to the financial freedom workshop,” she said. “I had begun receiving payments from the national insurance institute because of my age, so I put those funds aside. But with regard to my own insurance and investments, after I attended the workshop, I realized that I actually had no idea what I had and I knew I needed to look into it.
“The next day I set up a meeting with the consultant, the same one who lectured in the financial freedom workshop,” Ilana continued. “I brought him in the whole stack of about ten kilos of paper. He went through everything, and I left the meeting with one single plastic sleeve containing ten pages, and I knew exactly what was on each page.”
I felt her excitement and enthusiasm as she continued explaining how empowering it was to finally know what she had and how she could better secure her financial future. “I learned to differentiate between an insurance salesman for a particular company and an independent consultant who speaks frankly and lets me know what’s best for me,” she said. “I learned you can negotiate better commission rates, management costs, and there is a whole variety of programs to consider, especially for my age group, what’s more risky and what’s less. I feel now that within five years when I want to retire, everything will be in place, because I was able to get this education,” said Ilana. “I don’t think I would have woken up to it on my own.
“But as it is now, I have made many fundamental changes in the programs and funds that I have, including transferring a substantial amount to a different company that will really help me manage my money well. After all, this is the money that I will have to live on and it is the same for you. I encourage the younger people sitting here to really look at your finances now, while you have time to implement the right changes that will work best for you in the long run,” she said. At that point, Ilana turned to me, looking me straight in the eye, and said, “Thank you!”
I was so deeply touched, and I could see the people in the room were too, while listening intently. I was happy that the message and the tools related to financial freedom had such an impact. I was amazed to see that the vision I had and its ongoing implementation had deeply impacted a human being and made a real difference in her life.
The Impact of Financial Freedom
There are many other stories like Ilana’s. Let me tell you about the outcome of the financial freedom workshops held at Salt of the Earth, one of our Arison Investment companies. Employees and their spouses were encouraged to attend and learn financial management skills to help them with their personal lives and goals.
The statements that we received after the workshop were personal and moving. One forklift operator said, “My eyes were opened after the financial freedom workshop, and already from the first meeting, there is apparent change and it is a big change—how to manage my affairs and make more informed financial and calculated choices. Following the seminar, I realized that many things rely solely on me. I decided to commit my family and myself to this purpose. We all joined forces and followed the workshop manual.”
A spouse who attended with her husband shared her perspective this way: “Our experiences before with finances included stressful feelings and many arguments. This workshop opened my eyes. We got rid of our bank overdraft. Today we have a savings account and everything is under control.”
One of our welders at the salt plant said, “I see now that I was a big spender. I have changed drastically. Why didn’t I think of this before?”
When I hear these kinds of stories firsthand, I am moved by the impact, realizing that the value of Financial Freedom has transformed the lives of so many people. These changes have occurred not only in the bank and in our other companies, but the circles have expanded through employees, their spouses, and clients alike. When I hear how people talk about how their lives have been changed, I see how genuinely touched and grateful they are, and I think, wow!
This all started out with a vision of a new approach I had for the banking industry almost ten years ago. It took years of perseverance and patience, finding the right people with professionalism and heart in order to implement this. I am grateful for the leadership of so many people within our companies to stay the course and to continue advancing and implementing this incredible vision. It is not easy to make such a fundamental shift within such a large corporation, and it is an ongoing process, but I am thrilled that we are not giving up, and there is more understanding and impact every day.
Now, I’d like to show how Financial Freedom has gone beyond the individual, permeating all parts of our businesses and organizations.
Financial Freedom in Action: From Personal to Organizational
For years, I’ve been thinking about how to drastically de-leverage the loans of my businesses while continuing to grow. I have been watching as people and corporations around the world have become too highly leveraged, taking on too much debt, and then I have seen what kind of effect it has when those debts cannot be paid back. It causes a domino effect of people losing jobs, suppliers going bankrupt, and other harsh economic consequences.
In 2013, Arison Investments wrapped up about ten months of a negotiation process for financing a mega-transaction worth several hundred million dollars. This complex deal was done with my wishes in mind, as the owner, seeing the bigger picture and making sure I could de-leverage quickly and efficiently while ensuring continued growth.
There was an event held between Arison Investments and the funding partners to mark the occasion of completing this agreement, which was specifically structured by my team the way that I wanted. At that event, speeches were given by our CEO and CFO that specifically referred to the values-based moral compass that we use. It was important to us that our new financial partners truly understood where we were coming from and, in this case, how our value of financial freedom was interpreted and applied within this mutually successful negotiation. We felt that by staying true to our values, we created a win-win partnership.
One of the comments from the CFO was, “When we talk about financial freedom—we are talking, simply put, about aligning between desires and capabilities. From our viewpoint, it is an existential value, and the foundation for any wise financial planning or conduct. I am convinced that each of you here have experienced it in action—whether through this loan, or the way it was structured, the negotiation process, the issues brought to the table and insisted upon, or just as longterm partners measuring our operations for the long run. A process like this is intriguing and profoundly interesting, even more so during such challenging times. We are happy to be the recipients of your trust and the faith that you have in us.”
He went on to further explain how the Arison Group team interpreted our Financial Freedom value, which you will remember is defined as “the freedom (and the desire) to choose, based on responsibility and understanding of the framework of abilities and economic possibilities at any given moment.”
To us, within this negotiation, these words meant two very important things. One was that we would secure only what we needed for this situation, and not more, even though more money was available and we were offered more at one point. We wanted to be responsible and knew how to keep within our limits.
The second important element to us was to set up a flexible mechanism for repayment and get agreement right from the start that everyone agreed to this flexibility, even though it was a rather new and complex arrangement. We wanted to be able to de-leverage this loan over time in a flexible way, a way that we knew made the most sense for our company, given all the economic realities we were facing, and our own abilities.
