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Managing Wealth and Community Change


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The Path for Effectively Managing Community Wealth December 17 & 18, 2013 Vancouver, BC Ismo Heikkila National Director, Financial Education & Communication Aboriginal Services First Nations Economic Success – Links to Learning for Economic Development and Land Managers 2013
Speaker Ismo Heikkila, CFP National Director, Financial Education & Communication, Aboriginal Services

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Managing Wealth and Community Change

  1. 1. The Path for Effectively Managing Community Wealth December 17 & 18, 2013 Vancouver, BC Ismo Heikkila National Director, Financial Education & Communication Aboriginal Services First Nations Economic Success – Links to Learning for Economic Development and Land Managers 2013
  2. 2. Speaker Ismo Heikkila, CFP National Director, Financial Education & Communication, Aboriginal Services Ismo brings over 30 years of financial services experience and an effective ability to communicate to a broad spectrum of issues related to planning and financial education. He is a member of the Aboriginal Services team and leads the delivery of Financial Education and Communication Strategies within First Nation Communities. Ismo is a member of the Aboriginal Financial Officers Association. He is author of articles in the Journal for Aboriginal Management entitled “The Financial Planning Growth Process” (Volume 5, June 2008) as well an article entitled “Supporting Community Change through Communication and Financial Education” (2010), and "The Rewards and Consequences of Retirement Planning" ( 2013). Ismo works closely with human resource professionals to audit their existing financial education programs and design complementary programs that assist them in meeting their fiduciary responsibilities. He is a regular speaker on such matters having recently spoken at AFOA Regional conferences as well as the Aboriginal Financial Officers Association (AFOA) National Conference. Ismo also works on matters relating to adult learning and literacy. 2
  3. 3. Our mission statement Our team works with Aboriginal Communities and Trusts that are accumulating wealth received through treaty settlements, economic development revenue streams, resource revenues or the settlement of specific claims. It is our objective to build capacity at the Community level in order to enhance decision making abilities necessary in growing wealth for today...and preserving wealth for tomorrow. 3
  4. 4. A little bit about T.E’s Corporate background • Roots going back over 40 years (1972) – 2 nd generation firm • Offices in Vancouver, Calgary, Waterloo, Toronto, Montreal • Completely independent and objective Multi-disciplinary firm providing a wide and unique scope of service offerings • Investment advisory • Financial education • Communication • Respected voice within the Aboriginal Community • Endorsed by the Aboriginal Financial Officers Association of Canada (AFOA) to co-develop a curriculum and deliver Trust Management workshops nationally • Partner Member of the National Aboriginal Trust Officers Association’s Education committee, National Advisory Board and Membership Committees. (NATOA) • Partner Member of NationTalk 4
  5. 5. “The process” 1. Community Readiness a. Establishing Community Priorities b. Managing Change through Effective Communication Strategies c. Financial Education Programs d. Getting the “team together” 1. 2. 3. 4. 5. Establish Investment Priorities & Objectives Developing the Investment Policy Portfolio Structure Investment Manager Search and Selection Ongoing Performance Measurement & Interpretation 5
  6. 6. Today’s topics • • • • • • The Community Managing change Learning & literacy Financial education Communication Appreciative Inquiry 6
  7. 7. Community status • • • Goals Capacity building Empowerment • • Strategies Primarily mainstream researchers and practitioners • • • Evolving trends Communities taking control Programs representing “own culture” 7
  8. 8. Dimensions of capacity • Leadership • Participation • Social support – collaboration • Sense of Community – readiness to improve • Access to resources • Skill development and empowerment 8
  9. 9. What’s lacking • Strategies for building capacity • Measuring capacity change • Managed by each community 9
  10. 10. Considerations • Aboriginal frame of reference is still developing • Mainstream definitions of success differ from Community expectations • Mainstream models assume mainstream resources and skills exist and can be identified 10
  11. 11. What about… • • • • • • • Community history Culture Language Identity Culture division – traditional & dominant Band sovereignty Priorities 11
  12. 12. “Ways of knowing” • Aboriginal vs. Western mainstream • Transformation of power relationships • Honoring direct experience interconnectedness, relationships, values… • Focus on Community self-determination, healing, transforming 12
  13. 13. Community uniqueness • Process on own terms, own skills, collective assets, link to other community initiatives • New large initiatives can overwhelm resources and staff • Long term initiatives have value, yet substantial immediate needs may have priority 13
  14. 14. Time • Time is needed to fully establish and integrate a capacity – building process • Mainstream models expect to much too soon • Historical, cultural, special, political environment plus time is needed • Pressure to succeed may cause failure – need time to build trust, improve communication, develop solid working relationships 14
  15. 15. Sustainability • Time for long term support and evaluation • Is there an assumption that leadership will actually use the tools and processes? • Communities want to preserve natural balances in nature and life • Need to minimize mainstream linear, static, time – oriented format • Mainstream involvement must include community specific orientation (awareness to action model) 15
  16. 16. Change • The relationship of events to time • External & internal • The growth process 16
  17. 17. What we know… • Strategy • Tactics • Templates • Leaders & managers • Influencers 17
  18. 18. Review of the learning process Awareness Information Mental Understanding Acceptance Competency Action 18 Education Emotional
  19. 19. Factors to consider • • • • • • • • • • • • • Age Gender Current health statues Marital/family status Income Personal assets 19 Literacy Current events Organization culture Residency Ethnicity Personal values Education
  20. 20. New definition of literacy “Literacy is the ability to understand and use information from written text in a variety of contexts to achieve goals and further develop knowledge and potential”. - Organization for Economic Co-operation and Development International Assessment of Adult Competencies - 2013 20
  21. 21. Educational Activism 10 From these 4 elements select the most essential 1. Basic Literacy Ensure that every individual has core literacy skills, including reading, writing, and math. 2. Critical Thinkers Teach individuals to be critical thinkers and problem solvers. 3. Workforce Readiness Give individuals the skills that they will need to be successful in the workforce 4. Greater Good Prepare individuals to contribute to the greater good 21
  22. 22. Educational Activism 22
  23. 23. Overview of managing change What we want to accomplish…. • guide us to appreciate the “people issues” • give us tools we can use to manage change • stimulate discussion among members 23
  24. 24. What major issues do individuals think about every day? • Health • Relationships • Career • Finances 24
  25. 25. If in 1722 the Six Nations invested $1.00 in a trust fund at 5% simple interest. About how much is in the fund today? 10 1. About $15 2. About $1,500 3. About $150,000 4. About $1,500,000 25
  26. 26. Financial stress “…the unpleasant feeling that one is unable to meet financial demands, afford the necessities of life, and have sufficient funds to make ends meet…” 26
  27. 27. Determinants of health Source: Centers for Disease Control Institute for the Future 27
  28. 28. Financial stress health issues Health issue High level of stress from debt Low level of stress from debt Migraines / headaches 44% 15% Severe depression 23% 4% Insomnia / sleeping problems 39% 17% Severe anxiety 29% 4% High blood pressure 33% 26% Heart attack 6% 3% Ulcer / digestive problems 27% 8% Muscles tension / low back pain 51% 31% Source: AP-AOL Health Poll 2008 28
  29. 29. People challenges • Understand member is on the receiving end of change • Manage change so the members will “own” the process 29
  30. 30. The members “ We don’t have a single person to waste” - 30 Maggie Kuhn, founder of the Gray Panthers
  31. 31. People factors Culture •comfort in routines •fear of change •“initiative” fatigue 31
  32. 32. The challenge: … Overcome fear while preserving ego … Fear → “Saving Face” 32
  33. 33. Gaining buy-in Progress requires four pre-conditions: •knowing what to do and why •knowing how to do it •wanting to do it •having the resources 33
  34. 34. Resistance Overt Covert • Memos, meetings, one-on-one, public behaviors • Hidden and can go unnoticed until it destroys a change initiative • More constructive than covert because it can be heard and be addressed • Clandestine unrest from indirect complaining to sabotage • Usually the result of low trust and inadequate preparation 34
  35. 35. The community “Social advance depends as much upon the process through which it is secured as upon the result itself.” - Jane Addams Nobel Peace Prize laureate, social worker, and suffragist (1860-1935) 35
  36. 36. Community chaos? 36
  37. 37. Community sources of resistance • Diverging Goals - change is seen as a threat to established goals and means of achieving goals • Economic Motives - change seen as a threat to current resource allocation • Political Motives - change seen as a threat to establishment power relationships 37
  38. 38. Communication Step 1 Sender Message Receiver Receiver Message Sender Sender Message Receiver Step 2 Step 3 38
  39. 39. Communication “The greatest problem in communication is the illusion that it has been accomplished” - Daniel W. Davenport 39
  40. 40. The communication gap Chief & Council Trustees Members Time 40
  41. 41. Establish key messages Answer the 5 W’s • WHO: Who is affected? Who is championing? Who is Watching? Who cares? • WHAT: What impact will it have on me? What will I have to do differently? • WHERE: Where can I ask for help? Where can I get more information? • WHEN: When will I hear more? When will these changes happen? • WHY: Why is this necessary? Rewards & Consequences 41
  42. 42. Who will be affected? • Internally – the community members • Externally – non-members • How will they react? • What are their expectations? • How can they impact the success of the initiative? • What approaches will be successful with each? 42
  43. 43. Communication delivery • What are the current methods? - Face-to-face - Print - Electronic • What are the potential methods? - Committees - Special Events • What methods do the members prefer? (do our research...get the support of the “go to” members) 43
  44. 44. Awareness to action model “I wonder what these changes will mean to me?” “Something important is happening” “I understand the importance of these changes and what they mean to me.” Co mm De sir e “This is a good change! I’m ready to take the next step!” In te re st Action s nes re Awa itm 44 en t “This sounds important and interesting,. I’d like to find out more.”
  45. 45. Frameworks • Gathering of native American’s (GONA) • Heath education professionals • Traditional culture, values, training • Community advocacy & development • “CIRCLE” • Community Involvement to Revenues, Commitment, Leadership and Effectiveness • 4 – step, cyclical process and philosophy • Incorporates Western concepts of capacity building with Community research 45
  46. 46. What it does… • Create personal and professional relationships • Development of individual and group skills • Create effective working partnerships • Promotes commitment to issues, the group, the process • Core is Aboriginal Ideology 46
  47. 47. How it works… 1. “Building relationships” • Strong emphasis on “belonging” • Importance of “commonality” 47
  48. 48. How it works… 2. “Building skills” • Learning “mastery” • Unique individual contributions • Enhanced interpersonal skills 48
  49. 49. How it works… 3. “Working together” • Promotes “interdependence” • Full integration of individual, family, Community 49
  50. 50. How it works… 4. Promoting “commitment” • Honors “generosity” • Knowledge transfer and intergenerational sharing 50
  51. 51. Going beyond… • • • Standard approach; “Action planning” “Engaging leadership” • • Overlooks; “Disparities, wounds, poor conditions • • • • Future seeking; Collective identity Trust Reflect the Community’s reality 51
  52. 52. Why it works… • Mainstream models tend to blame Community “culture” for failure • Their models were inadequate coming from “top down” (Community placed) • Community CIRCLE model is from the “ground up” (Community based) • Individual can overcome institutional inequality 52
  53. 53. Appreciative Inquiry • Theory and practice of organizational change • Result of dissatisfaction with Action Research 53
  54. 54. Focus • Self Think about a time when you… • Community Think about a time when the Community… 54
  55. 55. Why Appreciative ? • Appreciation is a process of affirmation, it is an act of attention • Create change by paying attention to what you want • Appreciation helps groups generate images for themselves based on an affirmative understanding of their past 55
  56. 56. Problem solving & Appreciative Inquiry Problem solving Appreciative Inquiry Felt need ‘identification of problem’ Appreciating and valuing the best of what is Analysis of causes Envisioning what might be Analysis of possible solutions Dialoguing what should be Action planning Innovating what will be Basic assumption: community is a problem to be solved Basic assumption: community is a mystery to be embraced 56
  57. 57. Assumptions of Appreciative Inquiry • In every society, organization or group, something works • What we focus on becomes our reality • Reality is created in the moment and there are multiple realities • The act of asking a question influences in some way • People have more confidence and comfort to journey to the future when they carry forward parts of the past 57
  58. 58. Assumptions of Appreciative Inquiry • If we carry parts of the past forward, they should be what is best about the past • It is important to value difference • The language we use creates our reality 58
  59. 59. Appreciative Inquiry process 59
  60. 60. Amplification Stories • Quality of stories told - new telling, new insight • Recording of stories told - rich in detail, own voice • Sharing of stories told - thematic feedback, documents, video Propositions – capturing the elements • Surveys • Feedback on surveys 60
  61. 61. Appreciative Inquiry involves a shift “ No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.” “There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.” - Albert Einstein 61
  62. 62. How does this connect with what I am doing? You should be: • thinking • hoping • planning • dreaming Feedback – transition points of connection 62
  63. 63. Appreciative Inquiry summary • The task of management is meaning making and creating possibilities • Communities are networks of conversation • Affect action through communication • Communication contains moral order • Managing change by managing the communication 63
  64. 64. We can support you; • By understanding your community’s past history, present situation and future plans • By coordinating “the team” of advisors for Trust management • By providing Investment Advisory, Communication and Financial Education consulting services to your leadership and members 64
  65. 65. Summary • Our integrated, multi-disciplinary Wealth Management approach • Capacity building through knowledge transfer • Customized implementation • Genuine long term relationships 65
  66. 66. “One can live magnificently in this world if one knows how to love and work; to love one’s work and to work for one’s love.” - Leo Tolstoy 66
  67. 67. Contact information Ismo Heikkila, CFP National Director, Financial Education & Communication Aboriginal Services 26 Wellington Street East, Suite 710 Toronto, ON M5E 1S2 Direct: (416) 640-8572 Cell: (647) 520-3879 67
  68. 68. THANK YOU! 68