Managing Wealth and Community Change

The Path for Effectively

Managing Community Wealth

December 17 & 18, 2013

Vancouver, BC

First Nations Economic Success – Links to Learning for Economic Development and Land Managers 2013

Ismo HeikkilaNational Director,

Financial Education & Communication Aboriginal Services

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

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

A little bit about T.E’s Corporate background

• Roots going back over 40 years (1972) – 2nd 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

“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”

2. Establish Investment Priorities & Objectives

3. Developing the Investment Policy

4. Portfolio Structure

5. Investment Manager Search and Selection6. Ongoing Performance Measurement & Interpretation

5

Today’s topics

• The Community• Managing change• Learning & literacy • Financial education• Communication• Appreciative Inquiry

6

Community status

• Goals • Capacity building • Empowerment

• Strategies • Primarily mainstream researchers and practitioners

• Evolving trends• Communities taking control • Programs representing “own culture”

7

Dimensions of capacity

• Leadership

• Participation

• Social support – collaboration

• Sense of Community – readiness to improve

• Access to resources

• Skill development and empowerment

8

What’s lacking

• Strategies for building capacity

• Measuring capacity change

• Managed by each community

9

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

What about…

• Community history • Culture • Language • Identity • Culture division – traditional & dominant• Band sovereignty• Priorities

11

“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

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

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

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

Change

• The relationship of events to time

• External & internal

• The growth process

16

What we know…

• Strategy

• Tactics

• Templates

• Leaders & managers

• Influencers

17

Review of the learning process

18

Information Mental

Education Emotional

Awareness

Understanding

Acceptance

Competency

Action

Factors to consider

• Age• Gender• Current health

statues• Marital/family status• Income• Personal assets

• Literacy• Current events• Organization culture• Residency• Ethnicity• Personal values • Education

19

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

Educational Activism

From these 4 elements select the most essential

1. Basic LiteracyEnsure that every individual has core literacy skills, including reading, writing, and math.

2. Critical ThinkersTeach individuals to be critical thinkers and problem solvers.

3. Workforce ReadinessGive individuals the skills that they will need to be successful in the workforce

4. Greater GoodPrepare individuals to contribute to the greater good

21

10

Educational Activism

22

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

Overview of managing change

23

What major issues do individuals think about every day?

• Health

• Relationships

• Career

• Finances

24

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?

25

1. About $15

2. About $1,500

3. About $150,000

4. About $1,500,000

10

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

Determinants of health

27

Source: Centers for Disease ControlInstitute for the Future

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%

28

Source: AP-AOL Health Poll 2008

• Understand member is on the receiving end of change

• Manage change so the members will “own” the process

People challenges

29

The members

“ We don’t have

a single

person to waste”

- Maggie Kuhn, founder of the

Gray Panthers

30

Culture

•comfort in routines

•fear of change

•“initiative” fatigue

People factors

31

… Overcome fear while preserving ego

… Fear → “Saving Face”

The challenge:

32

Progress requires four pre-conditions:

•knowing what to do and why

•knowing how to do it

•wanting to do it

•having the resources

Gaining buy-in

33

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

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

Community chaos?

36

• 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

Community sources of resistance

37

Communication

Step 1

Sender Message Receiver

Step 2

Receiver Message Sender

Step 3

Sender Message Receiver

38

Communication

“The greatest problem in communication is the illusion

that it has been accomplished”

- Daniel W. Davenport

39

The communication gap

40

Time

Chief & Council

Trustees

Members

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

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

• 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)

Communication delivery

43

“Something important is happening”

“This is a good change!I’m ready to take the nextstep!”

“I understand the importance of these changes and what they mean to me.”

“I wonder what these changes will mean to me?”

“This sounds important and interesting,. I’d like to find out more.”

Awareness Interest

Des

ire

Commitment

Act

ion

Awareness to action model

44

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

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

How it works…

1. “Building relationships”

• Strong emphasis on “belonging”

• Importance of “commonality”

47

How it works…

2. “Building skills”

• Learning “mastery”

• Unique individual contributions

• Enhanced interpersonal skills

48

How it works…

3. “Working together”

• Promotes “interdependence”

• Full integration of individual, family, Community

49

How it works…

4.Promoting “commitment”

• Honors “generosity”

• Knowledge transfer and intergenerational sharing

50

Going beyond…

• Standard approach;• “Action planning” • “Engaging leadership”

• Overlooks;• “Disparities, wounds, poor conditions

• Future seeking;• Collective identity • Trust • Reflect the Community’s reality

51

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

Appreciative Inquiry

• Theory and practice of organizational change

• Result of dissatisfaction with Action Research

53

Focus

• Self

Think about a time when you…

• Community

Think about a time when the Community…

54

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

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

Problem solving & Appreciative Inquiry

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

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

Appreciative Inquiry process

59

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

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

How does this connect with what I am doing?

You should be:

• thinking

• hoping

• planning

• dreaming

Feedback – transition points of connection

62

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

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

Summary

• Our integrated, multi-disciplinary Wealth Management approach

• Capacity building through knowledge transfer

• Customized implementation

• Genuine long term relationships

65

“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

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

[email protected]

www.tewealth.com

67

THANK YOU!

68