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a7e3a041583ebd375e1dc698c7b58919
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/11/02/why-feedback-isnt-limited-to-for-profit-companies/
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Why Feedback Isn’t Limited To For-Profit Companies
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Why Feedback Isn’t Limited To For-Profit Companies
Kevin Xu is the Founder of Human Heritage Project, and the CEO of National Rongxiang Xu Foundation and MEBO International.
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Over the past 10 years, for-profit corporations have used the feedback loop to transform how they interact with customers. Nonprofit organizations, on the other hand, usually gather feedback, but they rarely incorporate it into their audience engagement strategies. According to the Stanford Social Innovation Review survey detailed in Harvard Business Review (paywall), 88% of nonprofits prioritized collecting feedback from customers and donors to measure the impact of their work, but only 13% used that collected data to enact positive changes for the company.
Upon ascending to the helm at MEBO International, I learned the importance of opening conversations with our patients to provide better service and further our mission. Over time, the feedback I received allowed us to improve our operations and serve more people.
Gathering feedback helps nonprofit organizations to adapt and grow — and to make the impact they set out to create.
Feedback Challenges That Nonprofits Face
A few obstacles limit how thoroughly nonprofits can rely on feedback. Chief among those reasons is lack of necessary capital, a problem that about two-thirds of nonprofits from the SSIR survey report having, in addition to a scarcity of staff. Additionally, nonprofits devalue feedback because of the delays between gathering feedback and implementing it effectively. This tedious process involves collecting audience responses, extracting important data and applying it.
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Despite these challenges, customer feedback is still the most authentic way for nonprofits to develop new strategies. In fact, as referenced in that same HBR article, 63% of organizations that relied on feedback are making program changes, while almost half are making operational changes, and 31% are offering new services. When organizations take feedback to heart, it shows they care about their audiences’ needs and are willing to address them.
Here’s how nonprofits can put those insights into action:
1. Supply multiple platforms to gather feedback.
After hosting an event or providing a service, your organization’s executives should meet to compile the feedback they received from participants.
Everyone should recall and record the comments made by participants after they received the service or attended the program. If you heard comments related to your organization, note them. Also, consider offering a written feedback form so that participants can jot down their thoughts instead of speaking them out loud. Or you can obtain digital feedback using online surveys and questionnaires. Simply send a link to your audience to access the survey you create, and have attendees fill it out. This option provides an easy way for participants to give feedback and for you to avoid delays in implementation.
Our foundation works with children in China who suffer from epidermolysis bullosa, known as EB. We host annual gatherings for parents of these children, and they provide feedback on the home-care guidance we give them. EB causes our patients’ skin to be extra fragile, so the children who live with these disorders have to be extremely careful while doing everyday activities. We use the parents’ comments on the written form to improve our recommendations and provide more well-rounded services.
2. Keep close tabs on audience trends.
An effective feedback system starts with input, of course. But your audience may prefer to give feedback a certain way, so monitor those preferences and incorporate them into your gathering methods.
If your customers prefer emailed surveys, send them. Do they like jotting down their thoughts after an event? Provide written forms. Your feedback system will be effective only if you observe these trends.
Every year on Thanksgiving, I volunteer to help cook breakfast with Project Angel Food. While we prepare meals for their clients, we brainstorm new meal combinations or nutrition plans for people with special dietary requirements. While these discussions aren’t traditional feedback, it's a collaborative way to continually evaluate current offerings.
3. Turn feedback into a game.
One way to collect valuable information and create a unique experience for your audience is by adding some competition to the feedback process. This polling method, also known as gamification, gives people an incentive to complete a poll or survey. Once the participant completes the poll or survey, they typically receive a reward for their involvement. If done correctly, gamification makes the poll participants feel valued. If done poorly, people may not provide feedback at all.
To gather input, we typically poll our meeting participants during breaks. At the beginning of the break, we ask participants to download an app on their phones so they can play games while answering a poll we generate. Nonprofits can use survey gamification in this way to engage audiences more easily and obtain important data to turn into actionable insights for real results.
When nonprofits utilize their audiences’ ideas to improve customer service, it shows that their needs are important. Nonprofits face certain key challenges when implementing feedback systems, but they can overcome those challenges with creativity and collaboration. Try using your customers’ feedback when developing new ideas and turning that feedback into innovation.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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c9189802f8be614621c7f037fb6fbe55
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/11/10/12-ways-nonprofits-can-ensure-their-teams-skills-are-relevant/?sh=ec58a21661b5
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12 Ways Nonprofits Can Ensure Their Team’s Skills Are Relevant
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12 Ways Nonprofits Can Ensure Their Team’s Skills Are Relevant
There are a lot of factors that could affect how a nonprofit functions. Challenges crop up in the most unexpected places, and an adaptable staff is crucial to ensuring that the business navigates uncertain ground and comes out on the other side.
The approach that most nonprofits take to ensure that this happens is diversifying their staff. With more experience across a broader range of potential disciplines, a nonprofit can prepare itself to face any challenge that may arise. The crucial element is ensuring that the skills of the team match the organization's needs.
Below, 12 members of Forbes Nonprofit Council take a look at how a nonprofit can guarantee its staff has relevant, current skills that fit its needs.
Members of Forbes Nonprofit Council share tips on how nonprofit leaders can ensure employee skills are current. Photos courtesy of the individual members.
1. Look For Passion And Commitment
At the Global Connections for Women Foundation, passion for our mission is one thing that we look for when recruiting for our team. The second thing we look for in addition to passion is a commitment to our mission to connect, educate and empower the women and girls we serve through our programs and initiatives. - Dr. Lilian Ajayi-Ore, Global Connections for Women Foundation
2. Cultivate A Culture Of Humility
The key to adapting well is cultivating an organizational culture of humility. Humility involves knowing our weaknesses and strengths. If we combine this with a passionate commitment to serving our mission with excellence, we'll find good ways to match team skills with organizational needs. If we don't have both (humility and passionate commitment to mission), we'll likely miss them. - Kent Annan, Humanitarian Disaster Institute
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Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
3. Empower Team Members To Cross-Train
Continuous professional development is a pillar of our culture. Every team member has access to an annual professional development allotment to be used to further their skills. I'm also an avid believer in the power of cross-training. I find that teams typically have a wealth of untapped knowledge and skills. Empowering team members to cross-train is an overlooked opportunity. - Christina Allrich, Beta Gamma Sigma
4. Seek Exponential Thinkers
In this time of uncertainty and rapid changes, we need people with exponential thinking capacities to approach issues with a positive mindset and develop opportunities. Exponential thinkers have a high emotional intelligence quotient, and they are able to work with less guidance based on their adaptability. Being an exponential thinker is essential to building resilience and navigating challenges with less resources. - Dr Lobna Karoui, AI Exponential Thinker
5. Continually Nurture Clarity On Mission
The nonprofit executive must continually nurture clarity on the mission and align action/reflection thereof with institutional values. To do so, nurture a high-performance culture and innovative teams. I recall asking Dr. Edwards Deming about why intrinsic motivation was so essential to success. His response was because people seek to find meaning and joy in their work. Leaders who do this succeed! - Jesse Bethke Gomez, Metropolitan Center for Independent Living
6. Use Personality And Skill Assessments
Personality profiles and Strengthsfinder are essential tools. We use a variety of assessments to test the natural bend of people in our organization. These profiles tell us if we have a good match for a position. They also tell us the kind of person who will thrive in a particular role. - Bill High, The Signatry
7. Know Their Strengths And Weaknesses
Know your staff. It is so important to learn your team’s strengths and weaknesses early on in order to delegate responsibilities that speak to their expertise and advance the nonprofit’s mission. Once you have an understanding of where your team excels, offering continuing education in those areas is key to sharpening their skill set and keeping your nonprofit moving in the right direction. - Dr. Sherry McAllister, Foundation for Chiropractic Progress
8. Challenge Them With New Projects
Employees get hired by a nonprofit organization when their set of beliefs is seen to match the values and mission of the nonprofit. In order to ensure that the team's skills remain updated, identify the strengths of each employee and make them grow through challenging projects and teamwork. There is no greater teacher than experience itself. - Patrick Coleman, GiveCentral
9. Meet Regularly To Discuss Skill Enhancement
Today’s challenges require innovative solutions and flexible skills. Our team meets regularly to address professional development and skill enhancement to stay current with the latest tools and technology. Team members present new skills and problem-solving options with brief tutorials and Q&As at monthly team meetings, allowing the entire team to build their skill base and technical training. - Victoria Burkhart, The More Than Giving Company
10. Conduct An Inventory of Skills
One way to match skill levels is to ask staff to complete a skill-level inventory form. Sometimes people have skills that were not on their resumes or job applications at the time of hire. Many of my staff are self-taught or they acquired off-the-job training for a hobby or interest that we knew nothing about. These hidden gems are likely throughout your organization. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
11. Host Leadership Development Sessions
To keep my leadership team's skills current in a rapidly changing world, I host periodic leadership development sessions. I invite executives in to describe the work of their organizations, outside experts who are advancing our field and new product champions to preview the efficacy of their products and services. We make book and article recommendations, and discuss reports on industry trends. - Christopher Washington, Franklin University
12. Leverage Networking And Research
One of the ways I try to cultivate skill development to ensure our team's capabilities are where they need to be is through networking and research. Regularly collaborating with others on projects helps our team stay more current and generate new ideas. We also regularly examine capacity-related research to help us identify best practices for success. - Jamie Aten, Humanitarian Disaster Institute
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d1f6b01e0559eb3145c9beb052520348
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/11/10/generous-giving-prevails-ways-to-help-others-during-the-pandemic/?utm_content=145651916&utm_medium=social&utm_source=linkedin&hss_channel=lcp-11076920&sh=28eba04a2a22
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Generous Giving Prevails: Ways To Help Others During The Pandemic
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Generous Giving Prevails: Ways To Help Others During The Pandemic
Patrick J Coleman is the CEO of GiveCentral. His expertise lies in stewardship, fundraising, electronic giving, and change enablement.
Generosity, also known as largess, is the quality of being liberal in the act of giving, very often in the form of gifts. This article aims to put the concept of generosity right in the middle of charity and how individuals and groups of people can help the ones in need during the coronavirus crisis. Being generous and playing the part of the giver is not just a noble act. It is also one of the many ways to spread joy and happiness.
The pandemic in 2020 has not been able to stop people from spreading positivity, and that is evident in a report by Double the Donation that shows:
• Overall giving increased 4.1% over the past year, the sixth consecutive year of growth.
• Online giving grew by 12.1% over the past year.
• 45% of worldwide donors are enrolled in a monthly giving program.
• Organizations with "missions related to international affairs experienced a 19.2% increase in overall donations over the past year. Environmental issues and medical research were the next most popular causes with donors."
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It is also noteworthy that 54% of donors intend to remain consistent in their online and mobile giving amounts, and a quarter plan on increasing their amounts. Online and mobile giving, including text-to-give, has emerged as the ideal solution for remote giving as it is quick and easy. From the older generation to the younger lot, I've seen every category of donors making use of technology and the internet to be of help to the needy, even during such challenging times. Let us look at a few ways in which more help and donation can be generated to channel more hope and unity.
Online Fundraising
Online fundraising can be done in different ways: crowdfunding through social media, creation of a dedicated fundraising page and a donation button on your website, among others. Whenever you make an announcement or a post about the cause, draft your content or copy in such a way that it tells a powerful story. Good storytelling is important. Making it personal at times isn't a bad idea. You can even write about the reasons why you feel so connected to the cause and how you can contribute to making lives better, with some help from your friends and family.
Virtual Events
You're already familiar with online meetings and virtual events. You can raise funds for your favorite charity by hosting a virtual event. This can be done in small numbers as well. A casual yet meaningful event can help you go a long way in extending help to others in need. You can make use of live streaming platforms that use a direct donate button, or you can make use of mobile giving for all transaction processes. Charge your friends, family, colleagues and attendees for the event, have a good time, make it musical if you may, start great conversations, and at the end of the day, the amount that you've earned can go to a greater purpose.
Staple Food
Even if you do not have a charity that you already donate to, you can find one on Google. Look for a cause that is close to your heart and consider getting staples delivered (there are multiple safe delivery services that can help you in this process). Even if you do not look for a charity online, you can look around your community and donate food and essentials to local organizations. This is a great alternative to contributing money. Your items can include nonperishable foods, hand sanitizer, baby wipes and toiletries.
Gift Cards
Donation through gift cards is a great way to contribute to charities that care for people and animals. This is so because when you give a gift card, the recipient can buy anything they need and want. As for organizations looking to donate, it is advisable to have gift cards in smaller donations so that they can be handed out to individuals as per requirement. You can easily order gift cards online. Gift cards from general stores are the best way to go about this due to the fact that donations are majorly done around necessities.
Old Belongings
This can be done for all kinds of nonprofits. Sort your belongings and drop off or send your old, unused clothes, shoes, books, toys and games to people who may need it more than you do. This is an activity where you can involve your kids and other family members. Make it a collective effort.
Conclusion
There are other ways to help others, such as not asking for refunds from nonprofit organizations in case of canceled events, running errands for people when you can and checking in on your neighbors. Do not forget to be extra kind and nice to everyone you meet or speak to — the world needs more of that right now.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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786674b3faa68b69c3de11531012ed3e
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/11/16/10-ways-consumerization-is-impacting-nonprofit-member-engagement/?sh=44357dca3b3e
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10 Ways Consumerization Is Impacting Nonprofit Member Engagement
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10 Ways Consumerization Is Impacting Nonprofit Member Engagement
Technology is one of the most powerful tools a nonprofit has at its disposal. In the past, nonprofits weren't able to dedicate a lot of their resources to engaging their members. It was possible that a significant benefactor or two would see fit to donate, but having a large volume of members was unheard of for most nonprofit organizations.
Today, technology has made it even easier to communicate with a large number of contributors, removing the burden from a single benefactor. However, it's still up to the nonprofit to engage with its member base. 10 members of Forbes Nonprofit Council explore how consumerization is helping them interact with their members and keeping them apprised of the institution's needs and advances.
Forbes Nonprofit Council members share how technology can impact member interactions while keeping organizations current. Photos courtesy of the individual members.
1. Staying In Touch
Technology comes in many forms, and it is most valuable to nonprofits when it comes at zero dollars! At RoomPlays, we leverage online communities, Google surveys, Keyword Planner, social media, Evite, Zoom, free blog hosts such as Wordpress, etc., to stay in touch with our members and share our brand value. - Deboshree Dutta, RoomPlays
2. Accelerating Growth And Impact
We embrace the notion of consumerization as a strategy for innovation and leadership as it allows us to accelerate our growth and community impact while deepening our connections with the women we serve. The advent of smart technologies has allowed us to create a platform where women around the world in 50+ countries can connect with each other and develop new skills with single sign-on access. - Dr. Lilian Ajayi-Ore, Global Connections for Women Foundation
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Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
3. Enabling Easier Remote Work
Covid-19 has ushered in a remote working environment. We continue to provide needed resources to vulnerable children, families and senior adults. Providing our team members with resources is also of paramount importance, and I do a lot of listening regarding what I can do to help them be more successful. Our IT team provides excellent resources and they continue to listen and adapt to the needs of our team members. - Albert L. Reyes, Buckner International
4. Meeting Members Where They Are
Technology affords us the chance to meet our members, sponsors and stakeholders where they are. Instead of asking folks to look for our mission, program and opportunities to engage, we can now find them and send that information directly to them. Robust technology and artificial intelligence will continue to be an incredible development tool for successful nonprofits. - Aaron Alejandro, Texas FFA Foundation
5. Better Addressing Member Needs
Our mission is educating young generations about trust technologies and personal growth. We use artificial intelligence to address the members' needs and improve our productivity. We also developed an AI product that let us learn more about our members, their needs and the changes in their lives. We use technology to create fast interactions with people and gather knowledge. - Dr Lobna Karoui, AI Exponential Thinker
6. Enabling More Transparent Communication
Technology surely has elevated the working of the nonprofit industry in multiple ways. Take churches, for example. Live streaming of masses via technology has become a norm in the wake of the Covid-19 pandemic. When it comes to interaction, there is even more transparency in communication and there are more topics to discuss with members. Conversations will definitely become even more engaging. - Patrick Coleman, GiveCentral
7. Turning Causes Into Commodities
One of the negative trends I've seen consumerization have is turning causes into "commodities." Technology has enabled nonprofits to reach larger groups of people than ever before. However, we are careful to make sure we engage in ethical storytelling that honors those we serve and in ways that remind others that behind every disaster statistic are stories of real people who have been impacted. - Jamie Aten, Humanitarian Disaster Institute
8. Communicating Directly
During the retail shutdown caused by the pandemic, we created a social media page for each of our retail stores to offer curbside pickup. Our stores have reopened, but we kept those social media pages because it allows shoppers and donors to communicate directly with staff at the store in their community. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
9. Improving The Student Experience
Improving the student experience has become a routine task, and one influenced by the increased frequency of info tech innovation cycles. Universities have the opportunity to design intuitive and seamless online experiences for students, from first contact through alumni engagement. Today's IT systems generate data about student behavior and enable us to solicit timely improvement ideas from them. - Christopher Washington, Franklin University
10. Enhancing Experience Via Strong Visuals
First, having good visual design on printed or website materials has made a significant impact. Second, ensuring they can consume key information quickly using bold fonts and bullet points, succinct content, etc. Third, continuously thinking about their experience—start to finish—and how we can make big or small adjustments so we're both more efficient for them and also facilitating connections with them on a deeper relational level. - Kent Annan, Humanitarian Disaster Institute
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d0fa1310129c9c9803a108553d6577c8
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/11/23/finding-a-balance-why-you-shouldnt-shift-your-csr-focus-solely-to-pandemic-relief/
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Finding A Balance: Why You Shouldn’t Shift Your CSR Focus Solely To Pandemic Relief
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Finding A Balance: Why You Shouldn’t Shift Your CSR Focus Solely To Pandemic Relief
Kevin Xu is the Founder of Human Heritage Project, and the CEO of National Rongxiang Xu Foundation and MEBO International.
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Covid-19 has turned many business leaders’ standard operating procedure upside down. For those leaders practicing corporate social responsibility (CSR), there’s been a struggle to balance pandemic-related initiatives with the other causes that their business aims to serve.
Striking that balance is a tenuous undertaking. My company has participated in CSR initiatives around the world, and it’s not unusual for resources to be reallocated to compensate for extenuating circumstances. While it’s natural to adapt your vision and mission for CSR initiatives during the pandemic, don’t let your original goals get tabled until after the pandemic. Find a way to tend to both.
Balancing A Pandemic And Other Social Causes
It’s not easy to maintain your efforts for causes that you typically support on top of shifting your focus to pandemic-related efforts. Fortunately, some strategies can help you create a healthy balance and impact all the areas you want to support.
1. Reframe your CSR parameters.
Take a look at the function and implementation of your CSR efforts. How you’ve always made progress toward your goals will likely be hindered by one thing or another, so you’ll want to revisit your timeline and adjust it accordingly.
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For leaders, an increased focus on Covid-19 initiatives is likely to add more work into the CSR planning process and take up more of your resources. For example, my company’s work with the United Nations Academic Impact (UNAI) in the Middle East and Northern Africa region usually allows us to train about 40,000 doctors annually. Due to the increased use of resources and our instructors’ workload, our estimate for this initiative’s progress is far lower than it would be in a typical year. We’ve simply had to readjust.
New information about the pandemic comes out almost daily, so build flexibility into your schedule and workflow. It can help you stay on top of all your goals — not just one of them.
2. Always have a backup plan.
In an uncertain environment, having a plan B is never a bad idea. While the pandemic has likely forced you to reconsider how your business operates and achieves its goals, CSR initiatives are just as important as they were before — if not more so. Having a plan to achieve specific goals means taking the time to craft concrete backup plans in case the pandemic impacts your day-to-day operations.
As I mentioned earlier, I’ve done some volunteer work on sustainable development goals as a member of the UNAI. Much of that work focused on training doctors in the Middle East and Northern Africa region. The pandemic has sparked travel restrictions for instructors traveling via international flights; to work around it, we’ve had to implement more time and flexibility into our plans.
In a rapidly changing business environment, nothing is more important than being able to switch gears quickly. When your goals are derailed by the pandemic — or countless other factors — try to seize new opportunities and partnerships to help you stay on track.
3. Never go it alone.
Partnering with competitors and other like-minded organizations can help you improve your community and reach shared goals. You just have to use the right strategies in these partnerships.
My company’s various university partners have shifted focus to study the coronavirus because of the urgency it presents. You should consider looking for ways to use your original goals to supplement pandemic efforts rather than picking one or the other. We worked with California State University, Los Angeles, and had been planning to open the Rongxiang Xu Bioscience Innovation Center later this year, but we decided to shift our original goals and open the center early for a different purpose as a Covid-19 testing site.
Creating a network of organizations that operate as partners rather than competitors helps boost timely pandemic-related causes and provides the flexibility necessary to pursue your original CSR goals. We’re all in this together — it’s a good time to remember that.
Your traditional CSR initiatives shouldn’t be de-emphasized in favor of pandemic-related undertakings (and vice versa). Leaders have resources at their disposal to balance both. By reframing expectations, remaining agile, and partnering with competent and like-minded collaborators, you ensure your business and CSR responsibilities can coexist.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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0635f8ae578582bf7a25ecab13614c63
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/12/07/the-power-of-social-and-emotional-learning-why-sel-is-more-important-than-ever/?sh=47e9d9d7a298
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The Power Of Social And Emotional Learning: Why SEL Is More Important Than Ever
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The Power Of Social And Emotional Learning: Why SEL Is More Important Than Ever
Byron Sanders, President & CEO of Big Thought, an organization creating creators for a 21st century world
getty
The pandemic has caused trauma for people of all ages, including — and especially — our youth. These challenging circumstances have forced students nationwide to pursue their education in entirely new ways, using new technology.
Youth have had to do so while facing feelings of isolation and dealing with family members who have fallen ill; others have been affected by the digital divide, which has only been exacerbated by the pandemic. The deaths of George Floyd, Breonna Taylor and so many others at the hands of police have also increased feelings of depression and anxiety, especially among Black people and people of color.
As a nation, our mental health has never been more important, and it’s essential that our youth have the tools they need to navigate these issues. But last spring, when Covid-19 dramatically changed the educational landscape, just 7% of educators felt prepared to address the social and emotional needs of students.
It’s become increasingly critical that we embrace and embed social and emotional learning (SEL) in both in-school and out-of-school environments.
What does SEL focus on? The Collaborative for Academic, Social, and Emotional Learning (CASEL) has established five core competencies for this framework: self-awareness, self-management, social awareness, relationship skills and responsible decision-making. Each component can have a profound effect on youth as they grow and pursue their dreams.
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SEL can help students better understand and identify their emotions; it can help them develop empathy, increase self-control and manage stress. It also helps them build better relationships and interpersonal skills that will serve them in school and beyond, helping them succeed as adults. An emerging benefit of explicit SEL instruction is that it builds the emotional intelligence and agility that business and industry is starting to name among the most desired workforce skills. For both their well-being and their future economic opportunities, SEL is power.
It’s never that our young people lack greatness — it’s that society isn’t creating the conditions for all youth to tap into their power. In my time as president and CEO of an education nonprofit with a mission to close the opportunity gap, I’ve seen how impactful SEL-inspired programming can be for our youth. And in my upbringing, I experienced firsthand how out-of-school programming can be a place of safety and enrichment. By equipping young people with what they need to navigate the social and emotional arenas, we help them reach their potential.
SEL is an incredible foundation to build upon. So what does it look like when we’re laying the groundwork in in-school and out-of-school time environments?
In some learning environments, it might be holding daily greetings, journaling or having adults model SEL skills. It might be through movement, where activities like yoga or dance help youth connect with themselves. Strategies that guide youth through controlled breathing help them center themselves and learn more about self-regulation in a calming environment. Or it could be music: Both singing and playing an instrument offer ways for youth to vocalize and externalize their emotions. SEL also frequently involves art and creative activities that help youth manifest what’s going on inside.
Organizations like the Wallace Foundation are trying to bring this to the forefront of education. Right now, the Wallace Foundation’s Partnerships for Social and Emotional Learning Initiative has allowed six cities to participate in a program that teaches social and emotional skills to elementary school students. (My home city of Dallas is one of those six, and its participation was made possible in part by a grant won by Big Thought, the nonprofit I’m the president and CEO of, and Dallas Independent School District.)
By embedding SEL into explicit instruction, practice and curriculum, we can help our youth better navigate the difficult circumstances they’ll face throughout their lives. We can help them thrive, even in the midst of an unprecedented global pandemic.
Those who lead work in youth-serving nonprofits have an opportunity to contribute to the movement as well. Adding explicit SEL practice to your programs and youth engagement can help affirm the sea change we are seeing to prioritize our mental and emotional well-being. Creating moments to check in with how youth are feeling, making space for breathing exercises and using curricula that emphasize explicit human connection are all ways that our youth development nonprofits reinforce what our educators are introducing in school settings.
I truly believe that SEL can equip young learners with the tools they need to better understand themselves, their feelings and their infinite value. Teachers and educators can’t change the circumstances that youth face outside of their classrooms and schools, but by embracing SEL, we can help youth discover new beliefs about who they are and the greatness of which they’re capable.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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354fcdfd312c0779b432e29f0777da1c
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/12/10/14-smart-ways-to-approach-nonprofit-financial-planning-in-uncertain-times/?sh=6a0855835ed9
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14 Smart Ways To Approach Nonprofit Financial Planning In Uncertain Times
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14 Smart Ways To Approach Nonprofit Financial Planning In Uncertain Times
Even in the best of times, no company can predict with perfect accuracy how it will perform in the future. However, the Covid-19 pandemic has turned even the most tentative of projections upside down.
It’s important for nonprofits to plan for a financially successful future, but how can that happen if there’s no definitive answer for a return to normalcy? To help, we asked 14 members of Forbes Nonprofit Council their takes on how nonprofits can approach financial planning in these uncertain times. Here’s what they had to say.
Members of Forbes Nonprofit Council share tips on how organizations can approach creating future financial plans. Photos courtesy of the individual members.
1. Maximize Your Budget Agility
Facing unprecedented financial challenges because of the Covid-19 pandemic, our association maximized our budget agility to ride the wave of disruption. Scenario planning provided bumpers for the winds of change. We evaluated fixed and variable expenses. To the fullest extent possible, fixed expenses were negotiated and discretionary expenses were eliminated. Culture thrived as a result of constant and clear communication. - Suzanne Ogle, Southern Gas Association
2. Show You're Worthy Of Donations
Be aggressive in doing good for others. When people are down to their last dollar already earmarked for charity, they will give only to the most worthy of causes. You need to show you are that worthy cause. Be aggressive in demonstrating this. A good offense is the best defense. Do not save as people want to see their donation in action! - Filip Filipi, 28. Jun
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3. Plan For The Worst-Case Scenario
Create three separate scenarios of worst-, average- and best-case scenarios. Then, go with the worst. You can pivot between them if things get better. Forecast out in three-month intervals and share these forecasts with your board and staff. Things are changing too fast to go out further than that. Make sure you have good relationships with local banks so that you can get fast approval and information. Finally, cash is king. - Tammy McLeod, Flinn Foundation
4. Cut Down Fixed Costs First
Firstly, it is important to remember that the future is hard to predict. However, it is a must for organizations to plan and prepare. Your nonprofit can begin by cutting down on fixed costs and then reconsider the cost that goes into programming. Create your own financial model that will have details of expenditures, salaries and variables, among others. Work closely around the same model. - Patrick Coleman, GiveCentral
5. Make Very Conservative Budget Plans
In times of uncertainty, wisdom suggests that we make conservative plans when developing future budgets. For example, in our budget planning for 2021 this year, we focused on our budget actuals for 2019 and shifted the budget closer to those patterns for 2021. - Albert L. Reyes, Buckner International
6. Approach It As A Daily Responsibility
Approach financial planning as a daily responsibility. Plan for the worst and build for the best. Invest early on in financial software, processes and people who can advise you. - KellyAnn Romanych, Veterans Legal Institute
7. Establish Your Tolerance For Loss
In years of financial stresses, nonprofits can create best- and worst-case scenarios. For example, in the best-case scenario, revenues decrease at or close to the same level as the decrease in expenses. In the worst-case scenario, revenues decrease at a much higher level than the decrease in expenses. Establish your tolerance for loss and decide what level triggers closures or staff changes. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
8. Get All Leaders Involved
All leaders should be involved in the budgeting process. Financial projections should be done with transparency, and best- and worst-case scenario modeling should be completed. - Charles A. Archer, One Hope United
9. Develop Multiple Revenue Streams
This is a common challenge most nonprofits face. Without going off-mission, I'd recommend nonprofits work to cultivate multiple revenue streams to help them weather difficult seasons. This improves the odds that funding will keep coming in even during challenging financial stretches. - Jamie Aten, Humanitarian Disaster Institute
10. Build A Contingency Budget
Plan for what you believe you can accomplish, but push yourself to stretch a bit and simultaneously build a contingency budget. When you build a contingency budget before you need it, it takes the emotional, crisis and potential personal stake/bias out of the equation. It also allows you to discuss and make the hard decisions ahead of time so that you are ready to pull the trigger on them when needed. - Kim Jefferies, Brighton Center
11. Seek Long-Term Financial Sustainability
We're focusing on being very conservative with expenditures until we have a better idea of what the world will look like after Covid. Expenses are one of the only things you actually have control of. Nonprofits also need to urgently seek ways to diversify revenue streams for long-term sustainability. Tiered membership, new programs or virtual events are all potentially viable options. - Christina Allrich, Beta Gamma Sigma
12. Consult A Board With Relevant Expertise
Budgets need to be planned in good faith with measured expectations based on previous performance or anticipated agreements. A well-assembled board of directors with business/management expertise can assist in making adjustments or communicating fluctuations. Budget conservatively and perform exceptionally. - Aaron Alejandro, Texas FFA Foundation
13. Focus On Donor Retention
It is harder to acquire a new customer than it is to retain an existing one. In times like now, organizations should focus on retention and plan their 2021 spend based on trends they have observed this year. We have seen a growth in users as they are seeking affordable resources online. Our focus will be to continue to drive value to this cohort. - Deboshree Dutta, RoomPlays
14. Optimize People, Process And Product
During uncertain times, brave and conservative planning is a demonstration of valuing the scarcity of resources. Look at the three P’s: People are first. Process in managing day-to-day operations is second. Third, your Product should be reflective of not just dollars and cents, but that you and your organization have respect for dollars and common sense. - Deb Mallin, Literacy Matters Foundation
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/12/14/as-our-economy-recovers-nonprofit-leaders-can-turn-to-veteran-entrepreneurs/?sh=167f8078501b
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As Our Economy Recovers, Nonprofit Leaders Can Turn To Veteran Entrepreneurs
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As Our Economy Recovers, Nonprofit Leaders Can Turn To Veteran Entrepreneurs
John W. Nicholson Jr. is President of the PenFed Foundation and a retired United States Army four-star general.
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America’s economy may be showing signs of a rebound, but we need to consider the possibility that the election may have a short- or long-term impact on the slow but steady progress we’ve been seeing. Our country should be thinking creatively about how to stimulate the economy in 2021, and our veteran entrepreneurs are poised to be a much-needed catalyst. But they will need the unmitigated support of our nonprofit leaders to have an impact.
One of the best ways nonprofit leaders can support veteran entrepreneurs is by reaching them at the local level. Every year, my organization, the PenFed Foundation, conducts a study of the top U.S. cities for veteran entrepreneurs. The study analyzes data from dozens of government databases, census information, private foundations and the Department of Veterans Affairs for 390 metropolitan areas across the U.S.
This year, New York; Washington, D.C.; Chicago; Seattle; and Minneapolis topped the list, with Atlanta; Boise, Idaho; and Jacksonville, Florida garnering the top three spots on our “emerging cities” list. The study considers four main elements: livability, economic growth, support for veterans and ability to start a business. This year’s study also took into account Covid-19-related factors, like the number of Paycheck Protection Program loans in each metropolitan area.
By impacting these elements in their cities and communities, our country’s nonprofit leaders can also attract veterans starting new businesses. For example, a nonprofit that builds a park would raise a city’s livability score; an organization that increases the city’s educated labor force would contribute to the “ability to start a business” category. Organizations can also focus on veteran-specific support by partnering with the local VA, VFW or American Legion.
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Our veterans and service members are two overlooked groups impacted by the pandemic. Some Americans assume that because veterans and service members get regular paychecks, disability payments or medical care they are not vulnerable to the economic impact of the pandemic. I can tell you from personal experience that this is, unfortunately, not the case.
When my organization launched a Covid-19 relief program for emergency financial assistance to the military community, we received over 6,000 applications in the first four days. Because of the enormous need, we sought outside partners, including Army Emergency Relief (AER). Since March, we have assisted over 1,100 military families through the Covid-19 relief program.
I urge nonprofit leaders not to overlook the importance of offering assistance and funding opportunities to veteran entrepreneurs. Every year, an estimated 250,000 military members leave the service and enter the civilian workforce. Many of them have innovative ideas for new businesses, but they choose not to pursue this path because they don’t have the capital or they are concerned about financial instability.
The loss of these potential entrepreneurs is a loss to our country. I've seen from our Veteran Entrepreneur Investment Program (VEIP) Master's Program how innovation and talent from veteran entrepreneurs can translate to products and services that are needed, especially in the current climate.
For example, Blue Eye Soft, founded by Army officer Srikanth Kodeboyina, created artificial intelligence to detect Covid-19 indicators on chest X-rays. Stasis Performance, founded by two U.S. Navy Special Operations, Explosive Ordnance Disposal (EOD) Technicians, is a breathwork app to help Covid-19 long-haulers regain the musculature and the strength back into their breathing following the illness.
Veteran entrepreneurs have immense potential to not only thrive in business, but to evoke powerful change in society. Nonprofit leaders are well positioned to take part in creating easier access to opportunities for veteran entrepreneurs. Nonprofit leaders can also be invaluable mentors to these entrepreneurs. We regularly match our entrepreneurs with mentors who are in their field or who possess skills that can amplify their businesses. For example, a nonprofit with a strong social media engagement could provide best practices for building a social media following. Leaders can also use their networks to promote veteran businesses.
To those working in the nonprofit sector: Veteran entrepreneurs in your city need your skills, mentorship, networks and support to build their businesses, raise capital and bring their ideas to market. If you’re looking for a way to get involved, please consider extending efforts to educating, preparing and investing in tomorrow’s veteran business leaders.
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/12/16/nine-ways-nonprofits-can-better-reach-potential-sponsors/?sh=73883bc22141
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Nine Ways Nonprofits Can Better Reach Potential Sponsors
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Nine Ways Nonprofits Can Better Reach Potential Sponsors
Nonprofits are always in the market for potential contributors. For a nonprofit, the idea of seeking out financing needs to go hand in hand with the public stature of the organization.
Fundraising comes in many forms, but based on the institution, one type of fundraising may be more effective than another. The type of fundraiser you delve into will attract different types of funders to your cause.
However, unless you reach out to funders before launching your campaign, they won't even know that it exists. Here, nine members of Forbes Nonprofit Council explore how nonprofits can reach out to potential funders and why these methods are so successful at attracting attention.
Forbes Nonprofit Council members share suggestions nonprofit leaders can use to gain the attention of potential sponsors. Photos courtesy of the individual members.
1. Know Who You Want To Invite
First of all, know who you are seeking to invite. If you are not clear about the heart you are speaking with, your messaging will be general. If you can imagine the person you are hoping to reach, that will help you make choices on the platform and message so you have a chance to start a connection. Fundraising campaigns are relationship campaigns. - KellyAnn Romanych, Veterans Legal Institute
2. Create A Detailed Proposal Package
Build an outreach plan with a clear strategy and a funding proposal package with supporting documents, like an annual report. Whatever the purpose of your fundraising campaign is, your potential funders will want to know their impact and how the funding will be spent. - Charles A. Archer, One Hope United
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Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
3. Meet Funders Where They Are
This is entirely dependent on what subsect of potential funders you're targeting. The most important thing is to meet funders where they are. For us, that means segmenting our target audience and using as much data as we can find to create specific campaigns for specific groups. Text, social media, emails and even old-school direct mailing all have their places in a successful campaign. - Christina Allrich, Beta Gamma Sigma
4. Leverage Social Media
More than 95% of Americans own a mobile device, and Pew Research estimates 72% of Americans have at least one social media platform. The numbers, aggregated reach, ease of use and expense (or lack thereof) make the decision of launch easy—social media is the best place to reach funders. Does it have flaws? Yes. Can it be effective? Most definitely. It is just one of several tools needed for an effective campaign. - Aaron Alejandro, Texas FFA Foundation
5. Utilize Online Networking
In the age of the Covid-19 pandemic, the best way to reach out to potential funders is through online networking. When you plan a fundraising campaign, keep a separate and specific list of activities aimed at getting more funders. This can even include email communication, and nonprofit influencers can also act as a medium to help you get potential funders. Do not be afraid to take your chances. - Patrick Coleman, GiveCentral
6. Organize Virtual Events
Through Covid-19, one of the best avenues is virtual events such as podcasts or expert panels where we drive value to our members through content and seek donations through registration to these events. We frequently host online panels and podcast series on channels like YouTube, Instagram, LinkedIn, etc. to attract potential donors while offering value through our content. - Deboshree Dutta, RoomPlays
7. Call Or Meet Them In Person
Personal phone calls and meetings are always best, when possible, to reach potential funders. This allows the nonprofit representative the opportunity to answer questions and learn more about the funder's interest. It's all about building a long-lasting relationship. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
8. Show The Difference You Make
Fundraising as a label may be a misnomer. I see it as stewardship—that is, helping donors and prospective donors impact a community or a family with their philanthropy. Rather than raise funds, I am providing opportunities to make a difference. The best way to do this is to clarify the difference we are making in the lives of vulnerable children, orphans and families. - Albert L. Reyes, Buckner International
9. Create A Shared Vision
Creating a shared vision is an effective strategy for reaching potential funders. Companies and nonprofits with common goals and missions are aligning for the benefit of one another and for the communities they serve. Corporate giving programs allow companies, both large and small, to make investments in the greater social good. Finding the right match will no doubt produce a connected funder. - Victoria Burkhart, The More Than Giving Company
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https://www.forbes.com/sites/forbesnonprofitcouncil/2020/12/23/want-to-attract-corporate-sponsors-14-strategies-for-nonprofit-leaders-to-try/?sh=511832d34282
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Want To Attract Corporate Sponsors? 14 Strategies For Nonprofit Leaders To Try
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Want To Attract Corporate Sponsors? 14 Strategies For Nonprofit Leaders To Try
Today’s consumers are more interested in companies that go beyond sales and profit to give back to communities in need. As a nonprofit leader, this is something to keep in mind when you pitch your organization and events to corporate sponsors.
To help you land a big sponsorship, we reached out to members of Forbes Nonprofit Council for their insights. Below, they shared their best tips for how leaders can make their nonprofit organizations more attractive to corporate sponsors.
Members of Forbes Nonprofit Council share tips on attracting corporate sponsors to your nonprofit organization. Photos courtesy of the individual members
1. Show Your Impact In A Shareable Format
Consider showing impact in a way that the company can easily share with employees and other partners. Infographics that detail how their support benefits your nonprofit’s mission can be great to use on the company intranet, annual report or social media. Companies that see you’re willing to go the extra mile to help them share their good work will be more likely to continue the partnership. - John Nicholson, PenFed Foundation
2. Unite Behind A Purpose
During these trying times, companies have rediscovered the power of uniting behind a purpose. Focusing on purpose gives company employees and their customers a sense of hope in an uncertain world. Nonprofits can leverage this by approaching corporations and offering sponsorship benefit packages that include opportunities for their employees, such as a volunteer experience. - Alejandra Guzman, New Orleans Business Alliance
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Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
3. Work Closely With Your Board Members
Most boards include members representing the charitable and business interests of companies. It is essential that the board chair, CEO and development committee work with board members to actively assess and cultivate a positive association between the organization and nonprofit. It is also important to help board members articulate the value of the association back to their organization. - Christopher Washington, Franklin University
4. Adapt, Connect And Innovate
To thrive in today's operating environment, nonprofit leaders must look beyond financial measures and adopt a systems approach to the measurement of impact. Only then can we adapt, connect and innovate. With an orientation to connect, relationships are broader and deeper. When we adapt, we expand the notion of responsibility to move beyond financials and be inclusive of all stakeholders. - Suzanne Ogle, Southern Gas Association
5. Tag Your Prospective Sponsor On Social Media
From my experience, corporate sponsors love a good social media shoutout attached to a worthwhile humanitarian action. A viral and engaging post brings organic interaction to a corporate sponsor and ties them to social good in the eyes of the public, who are, of course, potential customers. - Filip Filipi, 28. Jun
6. Do Your Homework Before Approaching Sponsors
To get started making your nonprofit organization more successful in attracting corporate sponsors, I would encourage leaders to do their homework before approaching to explore opportunities. Take the time to research whether the organizations of the corporate sponsors you hope to land are a good fit for your organization and vice versa. - Jamie Aten, Humanitarian Disaster Institute
7. Make It Relevant
Make it relevant to their employees. If it matters, connects to their employees and will help their employees personally or professionally, they are more willing to invest or contribute to an organization. Find the corporations that align with your mission or your event to start building relationships with those organizations first. - Kim Jefferies, Brighton Center
8. Demonstrate The Alignment Of Their Vision With Your Mission
Share your organization’s impact and how the organization will continue to affect change with potential sponsors. Clearly demonstrating how, why the corporation can get involved and how their corporate vision aligns with your mission may effectively engage them. - Charles A. Archer, One Hope United
9. Seek Out Common Ground
Find common ground. This common ground can be in the form of beliefs and interests. Corporate organizations, like any other body, are made up of people. As a nonprofit, it is ideal to research employees of the corporation that you are targeting. Get to know their likes, dislikes and field of interest. Make sure that the nature of your nonprofit sits in alignment, then launch the approach. - Patrick Coleman, GiveCentral
10. Create A Mutually Beneficial Case For The Sponsorship
The relationships between nonprofits and corporations have become much more dynamic. Those with common goals and missions are aligning for the benefit of one another and for the communities they serve. Create a mutually beneficial case for support. Understand how the partnership can benefit both you and your partner, then clearly articulate how working together will create a meaningful impact. - Victoria Burkhart, The More Than Giving Company
11. Demonstrate The Financial Return
Corporate sponsors want a return on their investment. Nonprofits should demonstrate the anticipated financial return from the partnership in a quantitative analysis. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
12. Focus On Creating Global Good
Focus on programs that aim to provide opportunities to create global good. We focus on developing our members into leaders with a broader perspective for impact on a larger scale. Creating programming which correlates to the UN’s Sustainable Development Goals has been very successful as they relate to the social impact goals of many large companies, many of whom we're targeting relationships with. - Christina Allrich, Beta Gamma Sigma
13. Incorporate Sustainable Principles
Doing social good, caring for diversity and inclusion and incorporating sustainable and ethically sound principles as part of your mission and strategy indicates the impact you wish to drive in the current climate. Our charter enables us to be inclusive, elevating underrepresented minorities through our platform and presenting opportunities for learning and growth - Deboshree Dutta, RoomPlays
14. Decide What Type Of Relationship You Want To Build
If you want to be more attractive to corporate sponsors, then decide early on what type of relationship you are hoping to build. Are you seeking a purpose-driven corporate sponsor whose model is to give without needing any additional benefits? If not, what benefits can you deliver that makes sense for your clients and organization? Remember, corporations are made of individuals. - KellyAnn Romanych, Veterans Legal Institute
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https://www.forbes.com/sites/forbesnonprofitcouncil/2021/01/04/tough-questions-and-answers-in-2020/
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Tough Questions And Answers In 2020
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Tough Questions And Answers In 2020
Dr. Charles Owubah leads Action Against Hunger USA’s executive team in providing leadership and strategic direction.
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There are years that ask questions and years that answer, Zora Neale Hurston said in Their Eyes Were Watching God. 2020 may be the rare year that did both.
There were obvious questions of equity: Who gets vaccinated first? Who has enough to eat, and who doesn’t? Who lives, and who dies? Deeply related are questions around the relationship between health, equity and climate. The way we address these questions across sectors will say a lot about our values and determine how long it will take to finally fulfill the U.N.’s founding vision of peace and prosperity for all.
An Affirmation Of Purpose
Business leaders are increasingly rejecting Milton Friedman’s view that profit is the sole purpose of business, ushering in an era of stakeholder capitalism. Many questioned whether that expansive approach would hold during the syndemic of Covid-19, faltering economies, racial injustice, rising global hunger and climate crises. For the most part, it did.
Americans also want the government to play a larger role in improving their lives. So, where does that leave nonprofits? I see room to reframe our sector.
Just as business is not just about profit, we are not just about charity, which many still see as the discretionary giving of spare change. Humanitarian and development work is essential. We help build stable foundations that support communities, governments and companies alike.
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Nonetheless, around the world, there are increasing restrictions on civil society organizations working on a range of issues and new questions about the role of traditional NGOs in supporting their colleagues working across the globe. Many nonprofits are struggling, even as demands for our services soar. With roughly 1.5 million nonprofits in the U.S. alone, I expect a consolidation is coming.
The organizations that thrive during this unpredictable time will be the ones that demonstrate a relevant mission, clear impact and rigorous accountability to donors, while partnering with communities, companies and governments.
The pandemic has provided an opportunity to innovate. Closed borders and social distancing challenged us to rely even more heavily on local partnerships, civil society groups and, in the case of my NGO, community health workers. We simplified hunger treatment protocols and brought care closer to families. We reached out to governments to see what they needed most and responded by pivoting in unexpected ways.
People will long remember how you responded in their time of need. That response should not be shortsighted.
A Great Reset
In the wake of the syndemic, Klaus Schwab, chair of the World Economic Forum, has called for a "great reset" of capitalism. Without one, the world may be even less sustainable, less equal and more fragile. He argues that incremental measures and ad hoc approaches aren’t enough; we must rethink our economic and social systems.
A true reset must create a world where every life is well nourished, starting with basic issues of food, water and livelihoods. It must acknowledge that climate change is happening now and that too many people already struggle with climate-related disasters such as droughts, floods and wildfires. It must account for poverty, fragile health and governmental systems, considering the people of Nairobi as well as New York, and putting the needs of Somalia at least on par with Switzerland.
With just ten years to go before the 2030 target date for the U.N.'s Sustainable Development Goals (SDGs), plans to build back better might be well served by using the SDGs as a road map. And, ideally, approaches will recognize how deeply connected our challenges are.
The Nobel Committee recognized that truth when they gave the Nobel Peace Prize to the World Food Program. Only a well-fed world can be a world at peace because hunger is both a cause and a consequence of conflict. Today, seven in ten conflicts originate in disputes over food, water or the resources to produce them. With about six in ten hungry people living in a country experiencing active conflict, hunger is increasingly being used as a weapon of war. Crop fields, water structures, and food and livestock storage facilities are targeted for attack, in violation of international humanitarian law.
We must come together across sectors to demonstrate through our actions that human rights matter, that international laws must be obeyed and that we will no longer accept a world where children die from hunger. We need a new global social contract — or, at least, to more fully live up to the old one.
A Shared Global Vision
We need a vision of the future that builds on the highest aspirations of our past. It’s notable that 2020 also marked the 75th anniversary of the U.N.’s founding. Like any human institution, it may be imperfect. Yet, I believe it has never been more essential.
2020 prompted difficult questions about nationalism versus globalism and answered with a pandemic and climate crisis that show our problems don’t stop at national borders. I firmly believe none of us can be completely safe until all of us are. The challenges we face can only be solved through a well-coordinated international approach to the fundamental issues confronting our brothers and sisters down the block and around the world.
As we look forward, we need a world that reaffirms its commitments to multilateralism. I see reason for hope. If 2020 has shown us anything, it is that remarkable change is possible, practically overnight.
The speed of vaccine development is one inspiring example. And, who would have thought that, in 2020, Tesla would be worth more than General Motors, Ford and Fiat Chrysler combined? It’s a sign that people will invest in the future.
To fulfill the promise of the future that has self-driving cars and missions to Mars, we first must come together for a great reset that delivers on a longstanding global vision that provides enduring answers to the profound questions asked last year.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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https://www.forbes.com/sites/forbesnonprofitcouncil/2021/01/06/a-leadership-lesson-nonprofit-leaders-must-learn-company-culture-is-more-important-than-you-think/
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A Leadership Lesson Nonprofit Leaders Must Learn: Company Culture Is More Important Than You Think
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A Leadership Lesson Nonprofit Leaders Must Learn: Company Culture Is More Important Than You Think
Executive Director & Co-Founder at 109 World, managing the daily operations of the organization and our global charitable initiatives.
It’s been a tough year on so many different levels, and the pandemic is not forgiving anyone or anything. On the organizational level, we are seeing our teams turn to our organizations’ cultures for support during isolation. Unfortunately, many of us are realizing that we haven’t intentionally created one, let alone nourished a culture that can support our people and mission during these stressful times.
We hear a lot about culture from “enlightened” organizations like Patagonia, Google or Salesforce — with their beautiful workspaces, free food and lavish employee benefits. And even though those meditation spaces and “no-work Fridays” may feel like an accomplishment, there is much more to building real culture and a unique organization’s identity. It’s the behavior of every single team member within and without the workplace. It’s the way they treat each other. It’s the way they treat their surroundings. It’s the things the organization does for its employees and the things the employees do for their organization. That’s the reason culture exists and happens no matter what. If you design for it or not, it is always there in the sum of all the small decisions you and your team members make on a daily basis.
I always thought that “company culture” was for big companies that needed something to help teams across departments and countries be on the same page. But when I started my own organization, 109 World, five years ago, I had limited resources and wanted to make sure whoever I brought to the team was a good fit and would stay to help me build the nonprofit. That’s when I learned that everything I wanted to accomplish could only happen if I first had an intentionally designed and mindfully nourished “company culture” — even if we were only three people to start with.
Since then, I have been observing how different companies approach culture and how it has served them and their mission. Thrive Global and Unreasonable Group have been two of my biggest inspirations and company culture role models. Thrive Global was founded by Arianna Huffington with the mission of helping people, organizations and communities unlock potential and enhance general well-being. Unreasonable Group, founded by Daniel Epstein, operates immersive programs for growth-stage entrepreneurs, offering solutions to seemingly intractable challenges. Having had the privilege to attend a few of the Unreasonable’s immersive programs and become a contributor for Thrive Global allowed me to witness two company cultures up close and learn valuable lessons as I built my own.
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Over the course of my experience, here’s what I've learned when it comes to being a leader in building teams, designing culture and creating your organization’s DNA:
1. Ensure the fundamental beliefs of your organization are explicit. What are the guiding principles that will help your organization determine if you are on the right path and fulfilling your mission?
2. Listen out to the organization’s values constantly. If you want those values to drive people’s actions, you will also need to have them reflected in your behaviors and embody them without exception.
3. Make sure the organization’s guiding principles are reflected in your and your team’s daily actions and interactions. It’s important to figure out what is most important to you and the company, and to surround yourself with people who share those values.
4. Design policies, traditions and habits around engaging the individual. The only way you can successfully create and scale culture is through practices that get down to the individual level. Individual action thereby indicates collective power.
5. Revisit your values and change if needed. Our world is constantly evolving, and so are our organizations and teams. Actively engage your employees in building and elevating your organization’s culture. Consider taking measures to consistently examine your organization's culture, such as team surveys or questionnaires to better determine how well your organization is living up to the culture you've cultivated. After all, ensuring we are living each of our values is a forever journey.
6. Find the people who truly care and embody the organization’s values, and nurture them. They are the ones who will hold you accountable and who will help you with constant and relentless culture reinforcement.
7. Remember that culture is built from the collective power of all the individuals on your team. That old saying that “if you want something done right, do it yourself” does not work here. You should not create culture by yourself, and you cannot have culture by yourself or with just a few.
This is not an immediate-success formula, but it’s quite simple. It comes down to your behaviors and the behaviors of your teammates. Whether it’s a startup team of four people, a growing company of 50 or a multinational with 50,000 employees, it’s all about engaging the individual around the core values that your company adopts. You'll know it’s working when you see your organization rebounding from periods of adversity and your employees tackling issues that would stop others in their tracks.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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https://www.forbes.com/sites/forbesnonprofitcouncil/2021/01/06/the-two-most-vital-lessons-from-founding-a-nonprofit-and-what-other-leaders-can-learn/?sh=24f3e7a42ccc
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The Two Most Vital Lessons From Founding A Nonprofit And What Other Leaders Can Learn
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The Two Most Vital Lessons From Founding A Nonprofit And What Other Leaders Can Learn
Speaker, Author, Personal Strategist, Founder of Pajama Program.
Now more than ever, we are all looking for meaning in our lives — and that includes in our work. As nonprofit founders, many of us are already pursuing our true purpose and leading teams that are united in part due to our passion and commitment to an amazing cause.
During the pandemic, I have found that leaders of other sectors are looking for new leadership lessons and alternative methods for connecting with and motivating their teams. They are looking to social entrepreneurs and nonprofit leaders like us to share what we know about being authentic and passionate and about truly connecting with each other. I've learned two vital lessons during my journey of founding a nonprofit that are the anchors of my book and masterclass series:
1. To lead with meaning, you must tap into the power of the human connection.
2. The power of one another truly evokes change.
Thousands of people have inspired me and taught me so much over the past 20 years, and I want to share what I’ve learned. During this pandemic's quarantine, I’ve been conducting a virtual master class series to help people utilize the sometimes hidden superpowers we all have as a means to support their purpose. Now more than ever, we all have to sharpen our leadership skills, empower others, share our stories, recreate a productive team culture and design fresh vision boards for ourselves while navigating changing situations and exploring new opportunities.
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Look Me In The Eyes: Connecting On A Deeper Level
Having the ability to make eye contact with team members and colleagues is an actual skill that, like anything that is not used for a while, can become rusty. As we go about our new normal in face masks, we are activating our innate ability to connect with others through eye contact in person and even over Zoom. This is the basis for forging stronger relationships and connections. Eye contact can set off a domino effect that results in stronger human connection, more engagement on personal levels and loyalty resulting in the motivation to succeed. When leaders are connected, invested and committed to knowing what personally motives their individual team members, they are automatically leading with meaning.
There are other simple ways nonprofit and business leaders can enhance connection. Take notes on your employees or clients that allow you to connect with them in meaningful ways. Jot down the names of their children, and ask about them by name from time to time. Or make a calendar reminder on a colleague's birthday, and shoot them a quick text or email wishing them a great day when the reminder pops up. These small, detail-oriented engagements hold a lot of weight when it comes to earning loyalty and respect. Ask about their marathon training or passion projects outside the office. When we understand what motivates and challenges others, we can establish more meaningful connections that strengthen team efforts and can result in higher productivity.
It's Not The Power Of One, But One Another
There is power in each of us, but when we invite the human connection in, a tremendous force is ignited. Sure it takes one person's idea to start something, but it takes a network and an army of support to give it life and put it into action. Brand ambassadors, volunteers, family members and friends who believe in your mission play such important roles because by sharing your idea or call to action with their networks, they are serving as your unofficial public relations team.
In my 20 years with Pajama Program, I have found that the No. 1 strategy for igniting the power of one another has been sharing the passion and power of my story. The real-life, authentic experience of meeting a little girl in a shelter who asked me, "What are pajamas?" propelled me day and night to make the Pajama Program a reality. In order to achieve that authentic, raw passion, you must have a purpose that is honest, true and comes from the heart. You must have the courage to put it out into the world. That is how the power of one another will instill real change.
A Life Lesson For Success
One of the silver linings of the pandemic has been the appreciation of what it means to be in this “together.” Some of us are home and relying on our neighbors and communities for assistance. Many of us are leaning on colleagues and co-workers to bring their creative talents to the table when inspiration is challenging or to jump on a Zoom call when someone else can’t.
For some of us, this might be a new experience in vulnerability. We may not be used to needing others as much or connecting with strangers over a pandemic, but we are doing it. As founders, we remain grateful for the donations and volunteers who are supporting our nonprofits. As employees, we are encouraged when our leaders ask how we are doing today. As people, we are grateful for a small kindness or convenience such as curbside pickup. We are appreciating that we need one another. We are beginning to truly recognize each other.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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https://www.forbes.com/sites/forbesnonprofitcouncil/2021/01/11/why-nonprofit-leaders-need-to-lead-the-way-in-innovating-education/?sh=7c4fe4c06244
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Why Nonprofit Leaders Need To Lead The Way In Innovating Education
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Why Nonprofit Leaders Need To Lead The Way In Innovating Education
Founder of LiteracyMatters.org, a teacher on a mission to close the literacy with scalable, ethical technology & evidence-based instruction.
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As 2020 comes to a close, are you looking at the glass half full, or depending on the day half empty after almost a year of surviving the pandemic? In 2021, millions of American families will continue to struggle to put food on the table, while others will have children set up, sitting up, and eager to join virtual classmates and teachers, in Zoom classrooms across this nation. If they have access to the internet and equity in education — that’s a big, powerful word — if. And if not now, when?
When the vaccine makes its way across the country and schools hopefully reopen, there is a question we will have to address as a nation: What becomes of the preexisting condition and national crisis of illiteracy that continues to destroy the future of our nation’s children? How many children have fallen even further behind this year because we did not innovate to educate, reach and teach all children how and where they learn?
According to research from Gallup and the Barbara Bush Foundation for Family Literacy, low adult literacy rates could be costing the U.S. economy $2.2 trillion in GDP. The research found that roughly 130 million adults in the U.S. are "reading below the equivalent of a sixth grade level." Reading levels in grade school-aged children have been stagnating and even dropping off. In 2019, national average reading scores for fourth and eighth graders were slightly below average reading scores in 2017.
Whether we look at the data on our failing education systems as a travesty of justice or from the lens of an economist astounded by the loss of human capital, there are questions we should be asking. If the definition of insanity is doing the same thing over and over and expecting a different outcome, we should apply this principle to our education efforts.
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Why haven't today's classrooms changed much in the way they look and operate over the past several decades? Why, in 2020, in this rapidly advancing, digital age of technology and machine learning and AI, are we still teaching children as though they rode to school in a horse-drawn buggy? We scaled Braille across this nation in 1918, during the time of the candlestick phone and the 1918 flu pandemic. Why can't we provide the fundamental skills of literacy, a sound-to-symbol and symbol-to-sound system that teaches the English language?
Who benefits when children are unable to move from learning to read to reading to learn? Access to evidence-based, whole child-centered learning is not a pie. We don’t need to ration piece by piece when we have the ability to democratize education. There is more than enough pie for everyone. We all do better when we all do better.
As nonprofit leaders, we have the immense responsibility to redefine and rethink how we approach our education initiatives. I challenge you as leaders to rethink how we provide sustainable systems change, starting with acknowledging that our efforts are dramatically diminished if we continue to work in silos. Collaboration, partnerships and coalitions offer us opportunities to strengthen our impact by harnessing the power and resources our fellow nonprofits have to offer.
As leaders in the education space, let's commit to supporting the best of both proven and innovative ways of approaching this generation’s national epidemic of illiteracy. I believe we can deconstruct the problem and mobilize an all-American effort to provide equity in education, with teachers properly trained in the science of literacy instruction, scalable individualized curriculum and the use of ethical technology that makes it all possible.
Another crucial element to our efforts is to educate ourselves on political candidates, state budget proposals and public-private partnerships that commit to targeted and accountable literacy education initiatives. We are the players who can evoke real change and advocate for greater education in-roads. The ROI isn’t just for the children we’ll teach. It’s exponentially significant to the donors who invest in our nonprofits — and for society as a whole.
As a nation, we can accept the hierarchy of responsibility and work together to make 2021 be the year we apply the lessons learned from the pandemic and scale literacy and justice for all.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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42b0f7f55e55cf763bcaf9269abd15ed
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https://www.forbes.com/sites/forbesnonprofitcouncil/2021/01/13/2021-will-be-a-year-of-challenges-and-opportunities/
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2021 Will Be A Year Of Challenges And Opportunities
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2021 Will Be A Year Of Challenges And Opportunities
President & CEO of MACNY - The Manufacturers Association with over 300 member companies in New York State. Visit macny.org.
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Individuals and leaders in all organizations can expect to find both challenges and opportunities in 2021. As we wait to vaccinate our country while continuing to combat the virus, we are presented with all that has transpired this year. We can learn a lot from the last year. New opportunities will present themselves that either didn't exist before the pandemic or are the result of an accelerated trend created by the pandemic. Leaders will need to recognize these opportunities and respond to them. If not, they run the risk of not adapting to the changing times and thus fall by the wayside. What are some of these challenges and opportunities in 2021?
One challenge and opportunity will be how we transition back to working after the pandemic is under control. We have worked differently for over a year now, with remote work and service having become staples in so many industries. Even workplaces where nearly everyone was present at the office or factory saw a large amount of working from home or flexible schedules. We've seen, employees and leaders alike, both the benefits and challenges of these critical approaches. Leaders need to rethink what their new workweek and work-from-office approach look like. Employees have experienced the benefits in their own lives, but they have also missed working with their colleagues in person. We've become more efficient and productive, having saved hours of traveling to and from work. We've added more flexibility in our schedules, allowing families and individuals to ensure their personal lives and health come first during the pandemic.
Taking these learnings into account could result in different schedules for our staff. Will 3-2-2 scheduling be the result, where staff work three days in the office and two days from home — or anywhere — and then have two days off? Will staff have the opportunity to live and work from anywhere in a remote mode? Will talent staff shift to more flexible employers who offer options more desired by the employee who has many life responsibilities, and if so, how can we craft a schedule that meets their needs? Implementing new work requirements or flexible schedules in our changing world provides challenges and unique outcomes that were not present before the pandemic.
Another result of the pandemic that we'll likely see continue into the new year is the use of virtual meetings and gatherings. Many organizations have become comfortable with multiple digital platforms to conduct meetings and serve clients. Events that were only offered in person can now more effectively and efficiently be provided virtually. Individuals and leaders who were once unable to navigate these experiences have become very good at doing so. These new skills will change the expectations of everyone with regards to how we interact going forward. Teams can now have short virtual meetings, routine gatherings and larger events without travel inconvenience. This is true for work across the hall, street or world. This new way to interact won't eliminate in-person meetings; however, it will change what gatherings we want to have in-person or virtual. It can save money, and more importantly, it can save time. Leaders who realize this and use it to help their staff be more successful will reap huge rewards.
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The third area of change resulting from the pandemic and the economic downturn is the revelation of just how prepared organizations and individuals are for a sudden change in our economic environment. Resilient, prepared and quick-adapting organizations weathered the downturn better than others. How we adapted mattered greatly. How individuals responded was undoubtedly noted. We learned a lot about the strength of skills and character during the stress of Covid-19. Organizations learned how to pivot, be safe and continue to operate. This was not just a periodic test; it was a full-blown crisis where we needed to act. Organizations that responded well demonstrated how to be resilient. Individuals who thrived indicated they are likely ready for the next challenge or crisis ahead. It may be years, or maybe just months, before individuals and organizations will be asked to change this quickly again. However, those that have done so are more likely to be successful in the future.
We've learned countless lessons during the pandemic and economic downturn. As the recovery begins, we all will need to process what we learned and apply it to our future success. What have we learned, and how can we apply these lessons from our experiences of working remotely? How will we use our newfound digital and virtual platforms to meet and work together? What lessons on being resilient will be applied going forward to be even more prepared and successful?
Answering these and many more questions will be how we, as individuals, leaders and organizations, best respond to the aftermath of 2020. Learning and growing from this challenging year will better position us for what we will certainly encounter in 2021 and beyond.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
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https://www.forbes.com/sites/forbesnonprofitcouncil/2021/12/28/13-key-steps-to-building-a-sustainable-nonprofit-organization/
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13 Key Steps To Building A Sustainable Nonprofit Organization
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13 Key Steps To Building A Sustainable Nonprofit Organization
As nonprofits are designed primarily to offer value to the community, as opposed to their shareholders like in the for-profit model, sustainability is one of their foremost concerns. Ideally, a nonprofit shouldn't be too dependent on donations or charity because it may weaken its position as an independent entity. When focusing on a community's needs, being an independent organization is a critical consideration.
But how does a nonprofit become sustainable? To help, 13 members of Forbes Nonprofit Council discuss how to build sustainable nonprofits so that they can stand out as independent organizations and weather any financial or social storms that may impact them.
Forbes Nonprofit Council members share tips on building an organization that lasts. Photos courtesy of the individual members.
1. Have A Meaningful Mission And Vision
Sustainability begins with a meaningful mission and vision enhanced by a multi-year plan containing strategic imperatives and actions that center the organization. Then, to weather any storms and attract new allies along the way, stay focused on employee and stakeholder experiences, diversified funding and strong financials—all in the context of a growth mindset. - Eric Reicin, BBB National Programs
2. Stay True To Your Life's Purpose
Stay true and grounded in your life's purpose and mission. Your vision and values will be the foundation of those you are privileged to lead and those for whom you serve. - Deb Mallin, Literacy Matters Foundation
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Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
3. Adopt A Learning Orientation
Trade associations have the responsibility of addressing critical industry issues. Adopting a learning orientation is essential to building and maintaining a sustainable organization. Curiosity and a flexible mindset are not limited; they can be applied to all decisions and scenarios, allowing leaders to leverage their brand for greater social impact and tighter organizational cohesion. - Suzanne Ogle, Southern Gas Association
4. Leverage Local Solutions And Partners
As a global organization, our priority is to create sustainable solutions, not a sustainable organization. To achieve the greatest impact with lasting change, we empower, invest in and rely on local solutions, staff and partners. By tapping local expertise, we engender buy-in from the communities we serve. Ultimately, we work toward the day when organizations like ours are no longer needed. - Charles E. Owubah, Action Against Hunger USA
5. Have A Leadership Succession Plan
Put a strong leadership succession plan in place. Effective succession planning leads to nonprofit sustainability, but don’t stop with the executive director. Ensure that a succession plan is in place at all levels of the organization for both the professional and volunteer areas. Succession planning is part of the core organizational process and it’s an important part that should not be overlooked. - Victoria Burkhart, The More Than Giving Company
6. Invest In Getting The Right Talent
Invest in talent. It may seem counterintuitive to invest big dollars in getting the right talent in your positions but when you do, you receive it back tenfold. Top talent brings innovation, creativity, efficiency and attracts other talented people, allowing everyone to contribute in ways that exceed their specific role. Top talent will help you weather any storm that you may face! - Kim Jefferies, Brighton Center
7. Build A Professional, Cohesive Team
Any organization’s capacity for sustainability and resilience starts with its team. A team of professionals who can collaborate, cross-train and brainstorm will be able to unite with strength and creativity to overcome a crisis. Our team leaned into the Covid-19 crisis by deploying our financial reserves under the guidance of our leadership to help as many military members and veterans as we could. - John Nicholson, PenFed Foundation
8. Ensure You're Designing For Impact
Sustainability is crucial in any business. The key strategy my organization maintains is to ensure that we are designing for impact. Designing for impact implies that we create programs and initiatives that are sustainable and are designed to create a measurable impact on the lives of those we serve. Essentially designing for impact to us means sustainability for the greater good. - Dr. Lilian Ajayi-Ore, Global Connections for Women Foundation
9. Leverage Financial Planning
Sustainability in the nonprofit world should include multiple concepts but one of the most important ones is financial planning. It is imperative that the organization understands what it costs to deliver their programs and services and where their revenue streams come from. Also, diversification of income streams can be one successful avenue toward achieving long-term sustainability. - Alejandra Guzman, New Orleans Business Alliance
10. Embrace Ironclad Integrity
Ironclad integrity is key, and it starts from the top down. If your supporters see an executive personally doing humanitarian deliveries, taking the time to introduce themselves to everyone and learning their names, their astrological signs or catching the bus instead of flying first class, you will win their loyalty. This loyalty can weather even an Elon Musk-esque Twitter storm. Integrity! - Filip Filipi, 28. Jun
11. Focus On Driving Value
Resiliency is the one skill that has taken companies from good to great. Our continued focus has been to consistently drive value through our core services to our members. At RoomPlays, we have built our mission and our services to prioritize member values—whether that is a flexible schedule, setting their own values and enabling their talent continues to be our focus and strategy. - Deboshree Dutta, RoomPlays
12. Create A Fee-Based Or B2B Arm
To build sustainability, create a fee-based or business-to-business arm for as many programs and services as possible that your organization provides. For example, when we built GoodTech Academy from a piloted IT incubator program, we created a managed IT services firm (GoodTech Services) to provide managed IT services to nonprofits and small businesses, as well as an IT temporary staffing business for graduates. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
13. Diversify The Way You Impact Constituents
Diversify ways in which you can impact your constituents. I task my team with regularly soliciting feedback from our members so we can stay current on the programs and initiatives that are most needed at that time. While Covid-19 has certainly presented a plethora of challenges, it has ushered in an era of much-needed innovation. It's allowed BGS to more honestly assess how we serve our members. - Christina Allrich, Beta Gamma Sigma
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https://www.forbes.com/sites/forbesnonprofitcouncil/people/albertlreyes/
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Albert L. ReyesForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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Albert L. ReyesForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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0c1437d6755402d0396e6f56e8df9edd
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https://www.forbes.com/sites/forbesnonprofitcouncil/people/charleseowubah/
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Charles E. OwubahForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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Charles E. OwubahForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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1f49e32b09bd6ef97a7870e58a74dba1
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https://www.forbes.com/sites/forbesnonprofitcouncil/people/danmantz/
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Dan MantzForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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Dan MantzForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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84e2c6d2042adb8dd1dfed40b30bb62e
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https://www.forbes.com/sites/forbesnonprofitcouncil/people/kimberlylewis1/
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Kimberly LewisForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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Kimberly LewisForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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b1b909abd515e40f63a32be0680a284e
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https://www.forbes.com/sites/forbesnycouncil/2017/12/14/nine-ways-locally-focused-marketing-initiatives-can-help-businesses-grow/
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Nine Ways Locally Focused Marketing Initiatives Can Help Businesses Grow
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Nine Ways Locally Focused Marketing Initiatives Can Help Businesses Grow
There are a lot of different ways to reach out to your customer base. While a solid ad campaign can motivate people to engage, it’s not your only option. Holding events and donating goods can get you in touch with people in your community, building up personal contacts, and letting people know about your values. Customer loyalty programs also help, as mild discounts can turn into major word of mouth. Online, Instagram hashtags can be hyper-localized, and Google Business pages, especially with strong local reviews, can drive up interest and traffic to your business.
So how do you improve your locally focused marketing initiatives? Members from the Forbes New York Business Council suggest the following:
Local entrepreneurs share their best marketing strategies. Photos courtesy of the individual members.
1. Donate Goods To The Community
In the first year, our only advertising, aside from social media, was through community donations. We donated baked goods to the library, YMCA and local school fundraisers. Since we are a small brick-and-mortar, it was important to us to target our immediate area, and doing donations built a sense of mutual support with our community. It also allowed people to fall in love with the product. - Crystal River Williams, Norma's Corner Shoppe
2. Use Local Hashtags On Instagram
Instagram may have a global reach, but it's also connecting you to people only feet away. There are many local hashtags that one can use, and Instagram makes it easy to supplement your posts with paid promotion. We can see our following and engagement grow, as well as track the impact a particular post has on product sales. - Henry Glucroft, Henry's Wine & Spirit
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
3. Use Programming And Events
Alley focuses its content and marketing strategies on the activation of our workspace and venues. We use programming and events to bring the growing entrepreneurial community together, in order to inspire meaningful interactions. - Jason Saltzman, Alley
4. Implement A Customer-Loyalty Program
Recently we implemented a customer-loyalty program, rewarding customers for sending friends or visiting our restaurant regularly. The customers love it, and we love it even more because it turns our customers into loyal advocates for our business! - Hoda Mahmoodzadegan, Molly's Milk Truck
5. Build Your 'Google Places For Business' Profile
One local marketing initiative I’ve found to be fruitful is Google Places for Business. We’ve built up our profile with images and other related content, and encourage all of our visitors to give us feedback in the reviews section. When people search for our products locally, this really helps us to stand out. - Chris Nolte, Propel Electric Bikes
6. Offer Discounts To Area Businesses
We’ve developed strong relationships with local businesses in our area to give discounted access to their services to our members. Not only do our members get a cherry-picked list of the best restaurants, retail and services in the area at an exclusive rate, but we’re able to fuel the hyper-local economy by investing back in these businesses and the neighborhood. - Morris Levy, The Yard
7. Focus On SEO And SEM
We really focus on SEO and SEM. Since we are hyper-local, this tends to drive a lot of traffic to our website, which in turns results in additional business. Making sure we spend a lot of time on Google Keywords, PR and blogs, for instance, really pays dividends. - Benjamin Goldberg, The New York Food Truck Association
8. Provide Educational Videos
Our team has implemented a local-target driven social media optimization and SEO platform, focusing on our specific niche business, in order to drive us as the industry leader in our niche field. We have coupled this exercise with creating educational videos for people looking to learn more about our field, and why they need to consider to have the work done now — whether by us or others. - Jason Yarusi, Yarusi Holdings, LLC
9. Use Facebook Boosts
We've found that targeted Facebook Boosts have a tremendous impact on our social media reach. These are slightly different than the Facebook Sponsored Ads and are more organic and individualized posts. We've increased attendance at events by as much as 25% when using targeted posts. Seems pretty effective. - Kelly Taylor, KelSo Beer Company
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https://www.forbes.com/sites/forbesnycouncil/2017/12/27/does-your-startup-need-a-lawyer-yet-three-things-to-consider/
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Does Your Startup Need A Lawyer Yet? Three Things To Consider
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Does Your Startup Need A Lawyer Yet? Three Things To Consider
When most business owners start up a new company, the founder(s) begin with a bootstrapped budget of their own savings. Some may raise a small seed round from family and friends. And those who are really lucky may have an angel investor.
Whatever their budget, most founders intend to put every single dollar back into marketing to scale growth. At some point, the question arises: Is this is really a good time to consult a business lawyer?
Shutterstock
Many owners attempt to skate by without legal help. But I believe that not getting a lawyer to help you from the outset is like building a house without a solid foundation — the bricks will begin to crumble at some point. Simply put, the “right” lawyer helps you manage risk.
I know firsthand that lawyers are expensive and the entire legal process can be daunting and intimidating, but waiting too long results in further risk management issues down the line that could have been nipped in the bud. The traditional “white-shoe" large law firms tend to be intimidating and expensive (I worked at such a firm once too) — but you may be able to locate solid outside general counsel for your company to manage your internal legal function at a fraction of the cost of hiring a traditional hourly lawyer.
You may be thinking, "OK, let me speak to my cousin’s friend or my neighbor’s relative who got Uncle Jim a big settlement in the past for a personal injury matter." While that may be a place to start, it's not the end of it. You really need to find a lawyer who actually practices in this space, instead of going to a personal injury lawyer to counsel and assist on shareholder matters or corporate governance. It's a little like going to a dermatologist to treat your heart condition.
If you're considering investing in a lawyer, here are the three most important areas to consider first -- and a few tips for finding the right lawyer for you.
Shareholder Agreements: A lawyer can counsel and help prepare shareholder, collaboration or such other agreements that help founders set forth the terms and conditions that will govern their business relationship. Even if your co-founder is a friend, contracts do not exist to protect someone when everything is going right and everyone is making money, but instead when there is a dispute and things are falling apart. Conflicts do arise (eventually, no matter how small), and the question is, how are you going to deal with the conflict? What protections do you have?
The types of considerations, among others, include membership considerations, management mechanics, decision making including expanding the business, appointing/removal of managers vesting considerations and a forum for dispute resolution (e.g., mediation, an advisory committee, arbitration or litigation), to name a few. Not surprisingly, in my experience, founders who do not have some type of agreement spend more money during the “business divorce” than the ones who do — because, if litigated, you have to spend more money in proving the existence of some type of agreement or “meeting of the minds.”
Agreements With Vendors And Third Parties: If you are starting to do business with other vendors or third parties, you may need master services agreements and confidentiality agreements to protect your trade secrets and other information. You may also want to begin protecting your trademarks, copyrights and, in some cases, patents (collectively commonly referred to as intellectual property).
Companies relying on online services to provide such documents miss out on the benefit of advice regarding the type of entity to be formed, the level of complexity involved in preparing solid operating and/or shareholder agreements. You should also consider mitigating risk with the purchase of several types of insurance, which your attorney should be able to explain to you.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
Hiring Agreements, Best Practices And Procedures: Your company will only be as good as the team that you build around you. This, in many cases, means hiring employees. The right lawyer can help you manage your risk by setting up employment agreements (including non-solicit, non-compete and confidentiality provisions), drafting employment policies and procedures, determining exempt vs. non-exempt statuses for overtime calculations, helping with I-9 compliance and even helping you differentiate between independent contractors and employees (not everyone gets this last one right). These considerations could be one-time "fixed" or "alternative fee" investments (instead of the standard "hourly" rate) so that business owners can maximize their return on investment as well.
Fortunately for many millennials looking to start businesses, there are tons of reviews on lawyers available on the web so you can start the vetting process online. But even with all of the online resources available now to locate lawyers such as LegalZoom, Avvo and others, I still think the best way to find a lawyer is through a referral from a friend or family member.
That being said, if you do not have a referral, finding a lawyer is very similar to finding any other professional service. Read their reviews on Google, Avvo, Yelp and LinkedIn. Don't forget to also read their peer reviews as well to see what colleagues are saying about them.
After that, the best way to select an attorney is to actually meet with two to three lawyers and see which one best fits your mold. When you do, take charge and interview them instead of the other way around.
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189de139767727233270180fe9095884
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https://www.forbes.com/sites/forbesnycouncil/2018/04/03/why-agility-is-key-to-business-success/
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Why Agility Is Key To Business Success
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Why Agility Is Key To Business Success
About nine years ago I was 30 years old, and after building several profitable companies I was dead broke. The kind of broke where bill collectors were calling and I did not know where I was going to get my rent payment. That’s tough to admit for someone like me who's proud of the things I've accomplished on my own because I worked extremely hard.
I was down. I felt like an idiot because here I was, this big shot spending a bunch of money on cars and drinks and other ridiculous things I thought were cool, and just like that, it was all gone. And when I say just like that, I mean that literally. One day my company was managing millions of dollars, the next day I barely had a penny. All of this because I didn’t structure my business to be agile enough to move with the times.
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Let me tell you how it happened. Years before I founded my current startup, I built a successful marketing agency. We catered to one niche — the mortgage industry — which was booming at the time. The marketing agency was stable, and the revenue stream was strong, so I got complacent. In my mind, I had it all figured out and thought, "This is what I am going to be doing for the rest of my life." I put everything I had into that agency. The idea of merging into another revenue stream or diversifying outside of that vertical never even crossed my mind. And then the mortgage industry imploded, the credit market plummeted, and I went from having tens of millions of dollars worth of clients on Tuesday to having zero on Wednesday.
That kind of experience would break a lot of people. And yes, I was obviously devastated, but I licked my wounds and got ready to bounce back with my next venture. For this business, I took on a partner and we hypothesized that building software to help people save their homes would be a billion-dollar business. At the time, we didn't know anything about software. We hired a third-party company that no one had ever heard of. We spent over a year building the software and tweaking the design to perfection and raised a million dollars in capital investment for the project.
Then we put our feet to the ground and blazed ahead, never getting any feedback from potential customers. So of course when we finally launched, there was dead silence. Our idea fell flat on its face and we lost all the money we raised because we jumped headfirst without even testing a prototype.
I learned a lot from those two experiences, but one of the biggest lessons is that you have to be agile if you're going to succeed. You can't get comfortable once you've had a little success. The world moves way too fast and technology is too much of a game-changer to ever think you can settle into one way of approaching your business.
My grandfather used to mention the Russian expression: "The wise man learns from someone else's mistakes, the smart man learns from his own, and the stupid one never learns." Clearly, I wasn't wise, because the same failure to be agile that tripped me up has been the stumbling block for thousands of entrepreneurs before me. But I am smart. Every time I've been kicked in the face, I've learned how to block. When I've fallen, I've learned where to lay down extra padding. When I run into roadblocks, I've learned how to change directions. That's agility, and I learned all that the hard way — from my own screw-ups.
But you can avoid all of that and learn from my mistakes. Here are a few suggestions so you don't fall into the same trap:
Focus on the process, not the end result.
Just because you started out with a vision doesn't mean that's what you're going to end up with. Agility means being prepared to change directions if things aren't working out. Some of the most successful businesses in the world started out as something completely different. The entrepreneurs that built these businesses shifted, pivoted and made a space for themselves where their vision worked. If you look at your business as an experiment, then you never fail. You're just working on the right formula.
Pay attention to the market and be ready to give it what it wants.
One of the biggest factors that will change the direction of a business idea is market feedback. When my business partner and I launched our software without ever getting a feel for what the market wanted, we ignored the only true validator of any great idea. Even if you've got investors throwing cash at you, all that means is that you've developed a convincing sales pitch. But if people don't want to buy your product or service — no matter how many indicators of greatness you had — you need to let it go or pivot and take it back to the drawing board. Remember, my marketing agency was bringing in huge revenue until the mortgage industry crashed. Take time to diversify instead of putting all of your eggs in one basket.
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Listen to feedback and let your community guide you.
I've started to integrate feedback and data into my business by operating skunk-works style with our community. We've set up a big lab where we launch ideas, get feedback from the community and build things that people want. This has been invaluable. But if you aren't nimble enough to execute on the feedback consumers give or the ideas that your community generates, then it's pointless.
The reality is that in business, things change, things break and things fall apart. When that happens, you need to be able to pick yourself up every time and say, "That was a great learning experience. What's next?" That agility will clear the path for successful ideas not yet on the horizon.
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49b86f883a2feba3417cee5ac5c62f9a
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https://www.forbes.com/sites/forbesnycouncil/2018/04/10/interfaces-of-the-future-the-importance-of-conversational-commerce/
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Interfaces Of The Future: The Importance Of Conversational Commerce
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Interfaces Of The Future: The Importance Of Conversational Commerce
The word “interface” has a single association for most of us. We often think of web or mobile design: at a simplified level, a combination of coding languages HTML and CSS used to provide us with the tools to interrogate information from the web.
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The Model: The Global Library
Websites have given us access to information for decades, using Hypertext Transfer Protocol (HTTP) to share information from the server to the end user. The way we view that information has significantly advanced over time, but the format continues to have its limitations, which are baked into the origin of the web itself.
Websites have become far more than just places to share information and text — a model based on the library concept, with books (websites) full of paper (web pages) and a card catalog to keep track of where everything is.
Over 20-plus years, this “library” has been reconstructed and repurposed into all sorts of use cases that were never imagined in the early days of the web: a virtual storefront for brands, personal platforms for communication and, in the last decade, tools for collecting valuable marketing insights and data from individual consumers.
The Problem: Libraries Are Not Good For Selling
In the mid-90s when we started building websites, we had big dreams for e-commerce. We thought brick-and-mortar stores would ultimately disappear and online shopping would dominate. However, despite the shift toward the web and the advancements of online technology, the retail conversion rate is less than 10% globally across smartphones, desktops and tablets. And only a small amount of brands (think: Amazon, eBay and Netflix) have found real success with e-commerce at the scale we initially imagined.
Websites have their limitations. Nearly all content designed for the web and applications adheres to a specific set of guidelines that make it easy to index. Like libraries, information is requested in a format that’s easy to mark, classify and file. It’s done according to the specifications of the “filing clerk” (or “librarian”) when I believe it should be consumer-centric and navigable using innately human methods, such as conversational messaging back-and-forth to get questions answered or find a product.
When Google appeared in the late 1990s, its search engine made it easier to explore the world’s online information, but it also created a framework for the way that information should be presented and shared. I’ve found search engine optimization (SEO) is, in reality, “GO” — “Google optimization” — which speaks volumes both for the company’s genius in organizing this market and also the detrimental impact of its one-size-fits-all structure.
To ensure they appear at the top of Google’s search rankings, companies are caged within a framework that stops short of giving people a natural user interface. Most websites offer the same experience: a navbar, text, pictures and a few other elements arranged similarly. Google’s SEO rules have hollowed out online experiences to monotonous levels — yet they don’t work for e-commerce.
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The Obstacle: Unanswered Questions
Asking questions is innately human. However, to navigate the web, we’re required to parse huge amounts of information and respond to the options available. We’re rarely given the opportunity to ask questions or interrogate data using our language of choice.
How we shop, for example, is far removed from how we read: it’s dynamic, nonlinear and open to whims and distractions from the vast information before us. We almost never read an instruction manual before making a purchase, although we are likely to have questions that would inform our decision to buy or not.
However, at checkout, we’re rarely able to find answers to any lingering questions, such as “Can I ship it back, or do I need to return it in person?” or even “Do you have this shirt in blue?” In industries with more complex sales, the e-commerce process is even more difficult. For example, try booking a flight online with specifications like: “Depart on Tuesday, but Wednesday if there’s a daytime flight. If there is a daytime flight, premium economy is OK. If it’s a red-eye, I want business class — as long as it’s under $3,000.” (Bad news: It’s not possible.)
There is something ingrained into our psychology that inspires confidence to spend money when our questions are answered. That’s why there’s so much buzz around bots and artificial intelligence (AI) right now. They tap into an inner understanding about how things get done — through conversations — and they hold the possibility of these personalized conversations happening at large scale.
The Future: Natural Conversations
The bot market has passed the stage of hype and started to mature. People now realize that chatbot technology and conversational commerce are here for the long haul. Natural language processing and natural language understanding are growing advanced enough to have human-like conversations.
Conversational AI — interactions via messaging and voice (e.g., Alexa, Google Home, etc.) — provides platforms from which we can interrogate information seamlessly. Some modern companies are launching as 100% conversational from the outset and removing many of the digital barriers that previously existed between the customer and the business. Endless click-throughs, broken links and web pages that crash or won’t load in the first place will be replaced by a conversational interface that enables consumers to message back and forth with brands to get the information they need and complete purchases. Finally, we can communicate with brands on our terms, one-on-one, at our leisure. And, as more consumers encounter and regularly use conversational platforms to make purchases and query data, the AI will learn and improve, ushering in a new age of e-commerce that adapts its responses based on the context and nuances of our inquiries.
In the next three years, we can expect to see this watershed moment gather momentum — and I suspect that, in 2018, we will witness a major brand shutting down its website and shifting to a fully conversational method of customer interaction. A hybrid of bots and human agents seems a likely first step, with consumers using popular messaging apps to talk to them.
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c6f3c75d900961558932ecb08ee8e999
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https://www.forbes.com/sites/forbesnycouncil/2018/04/11/online-retailers-why-physical-retail-should-be-your-next-move/
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Online Retailers: Why Physical Retail Should Be Your Next Move
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Online Retailers: Why Physical Retail Should Be Your Next Move
Online retail has become extremely competitive. The gaps are filled, the niches are plugged, and there's a compelling brand catering for every market segment under the sun. Opportunities to really mean something to our customers are disappearing fast.
A few years ago, being online and having a fast-growing Instagram was enough to drive market share away from main street and into our e-commerce stores — but the amount of brands selling online is reaching such a high number that getting noticed is becoming harder and harder.
Moving into physical retail must be your next move.
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The Return Of Retail
Stores are facing a hard time because companies failed to see the potential of innovation and retail experience. This is something that retail space upheaval has revealed; many retailers, who have now lost floor space and a physical environment, seemingly were not even providing a rich experience for their customers in the first place. Back in the day, customers may have had to tolerate badly-lit warehouses with cheap products and poor customer service in order to buy something. Fast-forward to 2018, and many of these places have gone out of business, leaving behind marvelous spaces that high-end online brands can use to their advantage.
The Power Of In-Store Experiences
Today’s generation of customers is much more interested in experiences than objects. The power of experience is unstoppable and it will also allow you to differentiate your brand from your competitors. A physical space is much easier to individualize than a webpage — it’s not a list of items on a screen, it's a room with its own wallpaper, layout and even scent. As well as this, physical spaces have the potential to do a lot more than a static webpage. They can hold openings, VIP nights, classes and even live music — and these are only a few ideas. You need to transform the boring classical retail space into a Coachella.
If you need real-world examples, look no further than some of the world’s most successful brands and what it is like to enter their stores. As well as seeing their products online, you want to tour the original Dr. Martens factory with a virtual reality system by Oculus in the Camden flagship in London, try on Nike sneakers and test them out on the court or on a simulated run at the brand's SoHo store in New York City, and create your own video in the Warby Parker Green Room on Melrose Avenue in Los Angeles.
I believe that stores today are more brand activation points than places where you go to buy a product. They have the potential to be a lot more than what they were for the past 100 years, and I believe the current crisis will force this change.
The Brand Experience Plus Online Convenience
A brand with a solid online backbone doesn’t even have to sell anything in its physical space. Customers can be saved the hassle of actually purchasing products in-store, being able to buy them instead from the comfort of their sofa and have them delivered in a day, if not hours. This is the best of both worlds — the unique experience of your brand and the convenience of online retail put together. Two quintessential examples:
Tesla showrooms feature just one or two core luxury products and one or two highly knowledgeable salespeople — but I find it’s an amazing experience simply walking in.
Warby Parker's online retail store worked well for them for a while, but then it became clear that customers wanted to try on and to feel the glasses on their faces, so they opened physical locations.
The physical world is still the world that we live in, go to work in, eat dinner in and fall in love in — it's important. It is our experience of the world — and it is the experience of a brand that will have your customers coming back.
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Based on what we've learned from working with a large variety of clients, spaces need to be extremely well-designed to work and attract customers. A beautifully designed space will last much longer than a warehouse space, it will retain customers for a longer time, and most of all, it will function as a brand activation in a way online advertising cannot. In my experience, people tend to remember physical experiences much more than the digital ones, partly because all senses — especially smell — are involved. My suggestion to retailers is to think hard about the one message they want to convey to their customers and then create a space that will transmit that message in the best possible way.
The digital space is there for convenience. The physical space is there for the experience.
As a business owner, your duty is, above all, to bring value to the customer in new ways. Yes, the internet will always beat retail in cost-efficiency, but it will never measure up to the rich, real-life experience of being in a physical store.
If you’re crushing it on Instagram with a great aesthetic and follower count, then physical retail must be where you’re headed next. In my opinion, designing experiences — rather than huge warehouse stores with hundreds of products — will not only be much more fulfilling for you and your customers, it will improve your foot traffic, online sales and overall retail revenue. Bring your online brand to life.
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https://www.forbes.com/sites/forbesnycouncil/2018/05/24/seven-areas-your-office-should-target-to-help-your-business-and-employees/
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Seven Areas Your Office Should Target To Help Your Business And Employees
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Seven Areas Your Office Should Target To Help Your Business And Employees
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Office moves and renovations present many opportunities for a fresh start. Changing your office’s location or interior design are catalysts for giving your entire company a makeover — and not just an aesthetic one. For starters, change is invigorating! With a fresh new look and a sharp, modern design, it’s hard for anyone working or visiting a beautiful and uncluttered space not to feel inspired and energized. Running a firm that specializes in managing relocations for individuals and companies, I know firsthand the potential advantages for businesses that operate “as if” they are moving (even if they don't plan on vacating their current office). If you are an owner or manager of a company, you should consider targeting each of these seven areas — whether you are relocating or not.
Introduce New Innovations
Moving to a new location encourages companies to try out different methodologies and techniques to run their business. Relocations prompt evaluation of the way a workforce collaborates and communicates. I believe rethinking staff workspaces, conference and recreational areas and examining new ideas for working simpler and smarter should be a component of any companies’ ongoing practice. This requires that both management and staff evaluate ideas that break away from the status quo in order to try new solutions aimed at improving productivity, efficiency and use of space. For example, open floorplans, non-assigned seating and multipurpose workspaces are a departure from the traditional walled-in workspaces. One can also utilize adaptable furniture designs to improve workspace flexibility.
Declutter, Organize And Beautify
Offices eventually accumulate furniture, equipment and accessories that are damaged or no longer serving a purpose. And regardless of how well your cleaning crew cares for your space, furniture gets worn and stained. We often discard or recycle anything that’s damaged, mismatched or outdated when we move a client. I strongly believe that clearing office clutter and removing antiquated furnishings is a good investment that will give a fresh face to your company's image. Supply closets, kitchens and break rooms are areas that typically become untidy. These spaces are used by your entire staff, so a team approach is needed in addition to assigning someone responsible for daily maintenance. For assistance, consider allocating funds toward a professional who has office organizing and redesign experience. The National Association of Productivity and Organizing Professionals (Full disclosure: I'm a member), as well as resources such as the American Society of Interior Designers and the American Institute of Architects, can be utilized to find consultants experienced in reorganizing an existing space or designing your new one.
Evaluate Expenses And Build Energy Efficiency
Most of our clients take time to evaluate their financial outgoings as they prepare for a move. From utilities to office goods, they often will conduct a review of their suppliers to explore ways to save money. Energy costs represent a significant percentage of an enterprise's monthly expenditures. With the green market constantly expanding and offering a range of more energy-efficient products, it’s smart to investigate and implement "green" upgrades to your office. Simple improvements such as a programmable thermostat, double-pane windows and automatic bathroom faucets may reduce your annual energy costs. Energy assessments should be routine practice for all companies and not just those on the move.
Enhance Employee Satisfaction
When evaluating your office, please take into account your staff who work there every day. Unpleasant surroundings and uncomfortable furnishings can be a real downer and deterrent. Enhancing your employees’ environment and comfort will likely result in a morale boost that can lead to more positive feelings toward their work and the company. Remember that their happiness directly affects the quality of their work as well as your profits.
Here are a few ways to enhance your employees' environment:
Improve Lighting
Research shows that exposure to natural daylight can have positive effects on one's mood, alertness and quality of sleep. Unfortunately, not every office space offers an unobstructed window view for each staff member. Installing skylights aren’t always an option, so keep windows regularly cleaned to maximize sunshine in and situate desks and workspaces within view of a window wherever possible. If an office has no windows, then the next best thing is indirect lighting. LED lighting and fluorescent lamps along ceilings, walls or floors can provide a hidden illumination source that can transmit light throughout the space. It’s less harsh than having the light shine directly on you, and it doesn’t reflect off of computer screens.
Update Technologies
State-of-the-art office technologies are frequently a component of office renovations and relocations. With wireless devices and cloud-based programs, offices can drastically change their layouts and reduce space in areas that once contained hardware and wiring. Depending on your situation, you may find such areas can be converted for new purposes and you’ll be able to streamline traffic patterns to avoid time wasted traveling to places such as the printer.
Get Ergonomic
A comfortable work area with quality furnishings lets staff know that your company cares about their well-being. Sitting on chairs that facilitate good posture and installing under-desk keyboard trays are measures that encourage proper body alignment and comfort. Some offices have taken their workspaces to the next level by introducing standing or movable desks. Standing desks are believed to provide impressive health benefits that include improved mood and energy. Most versions are adjustable, allowing the user to change the height of the desk and alternate between sitting and standing. If buying new desks isn’t feasible for your company, then consider a desktop adapter that will convert a traditional desk to a standing desk in minutes.
All in all, a newly improved work environment can promote increased productivity and enhanced efficiencies, along with a variety of other personal and professional benefits. So why not start managing your company with the same mindset that you would if you were relocating or remodeling your office?
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f2dd7eaf948e6ee2f63f8385d8c9734b
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https://www.forbes.com/sites/forbesnycouncil/2018/11/13/emotional-intelligence-in-business-and-leadership/?sh=3a76f6f159eb
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Emotional Intelligence In Business And Leadership
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Emotional Intelligence In Business And Leadership
In recent decades, the definition of leadership has been changing, and an emphasis on emotional intelligence has emerged. Emotional intelligence, or EQ, has become recognized for its correlation to success in work and personal life, to motivation and to overall well-being. In business, high-EQ people have become desirable to employers due to the various advantages they enjoy.
Some of the most successful and influential people in history have had high emotional intelligence, such as Martin Luther King, Jr., Abraham Lincoln, Winston Churchill and Warren Buffett.
What is Emotional Intelligence?
Emotional intelligence is a person’s ability to recognize, understand and manage their feelings and emotions, as well as those of others. According to psychologist Daniel Goleman, emotional intelligence has the following five components:
1. Self-Awareness: Recognizing and understanding your own strengths and weaknesses, your emotions and moods, and the effects these things have on other people. A self-aware person is not easily offended by criticism, but rather learns and adapts.
2. Self-Regulation: To think before doing and to express your feelings maturely with restraint. Rather than being controlled by emotions and impulses, an emotionally intelligent person can control impulses and emotional responses.
3. Internal Motivation: High EQ people are self-motivated, pursuing personal goals for reasons of self-development and self-gratification, rather than money, titles, external praise or esteem. This could mean getting into humanitarian work because of a true passion, rather than seeking out the highest paying job.
4. Empathy
Empathy involves recognizing, understanding and feeling the emotions of others. Unlike sympathy, empathy involves actually sharing the emotional experience another person is having. When a friend loses a family member, sympathy is flowers and a hug — empathy is shedding tears alongside that friend and not by choice, but due to actually feeling their emotions. Empathetic people genuinely understand and respond to the needs of others.
Robert F. Kennedy is one example of a highly empathetic leader, whom, upon being exposed to the suffering of African Americans, was so moved that he shifted his political priorities to address their needs.
5. People Skills
Emotionally intelligent people easily build trust and respect with others. They are good at managing relationships and building networks, and they avoid power struggles and deceitfulness. Their high levels of the first four components of EQ make for deep bonds and genuine, non-competitive friendships.
Why is emotional intelligence important in business?
In a study that involved over 2,600 hiring managers, 71% said they value high EQ over high IQ.
When asked why, they cited the following reasons:
• High EQ employees are better at staying calm under pressure.
• They listen as often or more often than they speak.
• They lead by example.
• They make more thoughtful business decisions.
• They take criticism well and admit their mistakes and learn from them.
• They keep their emotions in check and can discuss tough, sensitive issues thoughtfully and maturely.
• They are able to effectively resolve conflict.
• They are empathetic to coworkers and react accordingly.
In my consulting work, I saw one startup fail because the founders did not listen to each other and couldn’t compromise in the face of difference. I sat in on founders’ meetings and watched a lack of self-regulation and empathy lead to doors slamming. I have attempted to mediate such meetings and found success only when participants were willing to practice demonstrating the behaviors that comprise the components of emotional intelligence.
How To Increase Your Emotional Intelligence
Luckily for humanity, there are ways to increase emotional intelligence through practice. Here are some of them!
• Pause before speaking, acting or responding. This allows for initial impulses to fade, and for undistorted reflection and reasoning to occur.
• Listen to others. Listening allows us to better understand the needs and emotions of others. Listening takes the focus off one’s own needs and shifts it to those of everyone, enabling better solutions that benefit more people.
• Attempt to control your thoughts. We cannot control what happens to us, or the emotions we feel in a moment, but we can control how we respond to them if we practice directing our thoughts. Rather than blaming oneself or another person when something negative occurs, consider alternative explanations. Maybe the circumstances leading to such an event resulted from many combined factors, the product of which was beyond any one person’s control.
• Praise others. Praising others on a habitual basis trains your brain to focus on the good in others, which encourages empathy and allows for a deeper understanding of people’s needs and motivations. Praise also sets the stage for thoughtful discussions on tough issues, as it decreases defensiveness and encourages openness to opposing thoughts.
• Reflect on criticism and search for ways to grow from it. Criticism can sometimes be hurtful, but it can always be helpful, as it exposes us to true outside perspectives. In the face of criticism, ask yourself: How can I improve and grow from this?
• Pay attention to body language. Much of communication is non-verbal. If you only listen with your ears, you could be missing out on how a person really feels, and even efforts to help them will thus be misinformed.
• Apologize. Intentions get misunderstood and feelings get hurt regularly. Apologizing shows compassion and encourages us to better understand one another while building trust and respect.
• Try to see from another person’s point of view. When in disagreement, consider the needs, motivations and emotions that may be shaping another’s priorities and opinions. Ask the reasons behind their thoughts and try to genuinely understand them. Maybe then, common ground will be found.
• Communicate your feelings. When you are offended or upset, communicate to the offending party in a calm, non-threatening way so everyone can gain a mutual understanding and avoid future problems.
In business and leadership, it is clear why emotional intelligence is so important. In the increasingly diverse world we live in, EQ is a necessary tool for providing social and economic solutions to people of vastly different circumstances and needs.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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bf73a4a0028d3554f6274769c8464aca
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https://www.forbes.com/sites/forbesnycouncil/2018/12/10/six-legal-tips-for-purchasing-commercial-real-estate/?sh=89e96be6bd7d
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Six Legal Tips For Purchasing Commercial Real Estate
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Six Legal Tips For Purchasing Commercial Real Estate
When it comes to commercial real estate, it is of paramount importance that, when you retain legal counsel, they take an in-depth look at all the nuances that make up the future transaction. Below are six tips that will help ensure your commercial real estate acquisition process goes smoothly.
1. Identify the sector of commercial real estate.
First, it is important to discuss the sector within which you are purchasing: industrial, multifamily, retail, office or mixed use. Once you identify which sector, legal counsel can then advise you on the type of due diligence that you as the client need to perform.
2. Assess requirements that surround the sector of the property.
For instance, if you are purchasing industrial property, it is important to understand the requirements that are involved in alleviating environmental liability. Certain states have tougher laws regarding this, and New Jersey is one of them. In many states, completing a Phase 1 Environmental Assessment is sufficient. In New Jersey, a Preliminary Assessment is required to mitigate the client of environmental liability, in addition to a Phase 1 Environmental Assessment and a Phase 2 Environmental Assessment.
3. Engage a structural engineer.
After addressing environmental liability issues, legal counsel should advise you on engaging a structural engineer. The use of a structural engineer can help ensure the safety and longevity of buildings and structures. A structural engineer is vital in commercial real estate for many reasons, such as to review the structural integrity of the asset, surveys and any other asset inspection reports, engineering or otherwise, that the seller has within its possession. Often, a structural engineer will conduct a Property Condition Assessment (PCA+), in which the engineer reviews a commercial property’s systems to evaluate items that can impact the value of the building. These items may include the foundation, roof, HVAC, plumbing, electrical, landscaping, fire systems and more.
4. Consider investment risks.
In a larger sense, considering risks associated with the commercial property is quite important. Understanding that these risks vary, even among similar buildings in similar areas, can help with assessing the potential value of your investment with a clear head. Asking the right questions ahead of time can help ensure that your investment does not create too much risk. Reviewing the property’s profit and loss statement, real estate taxes, utility statements and any other common area maintenance invoices is important when assessing the financial condition of the property.
5. Perform due diligence for permits and title.
Local ordinances for permits also vary among different jurisdictions. These processes can take a few weeks to a few years, so understanding your local timeline and beginning the permit process early can help abate potential issues down the road. Legal counsel must order a title search to determine whether any title defects exist to ensure that a clear and marketable title transfers at closing to the client.
6. Identify financing.
It is vital that a client identifies different financing sources well ahead of entering a Letter of Intent (LOI) and contract in order to avoid delay during and after the contract process. This way, once a contract is entered, the client may turn to a financing source very quickly to secure financing for the transaction and know with certainty that the transaction will be financed. A delay in securing financing can result in a delay (or a missed opportunity) securing the desired property. Legal counsel can help you consider options when it comes to financing.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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9f81ab7da31b4fe81128f883672e10c2
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https://www.forbes.com/sites/forbesnycouncil/2018/12/13/the-pros-and-cons-of-the-marketplace-model-for-e-commerce/
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The Pros And Cons Of The Marketplace Model For E-Commerce
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The Pros And Cons Of The Marketplace Model For E-Commerce
E-commerce is here to stay. There is no denying this. But as investment and innovation continue to grow within the industry, we’re starting to see new models take shape under the e-commerce umbrella, the most popular being marketplaces. The list of companies that have successfully leveraged the marketplace model to facilitate access to goods and services is impressive. Some of these include eBay, Uber and Airbnb, to name a few. The model has clear advantages, but also plenty of challenges.
From a business perspective, traditional e-commerce ventures can be capital-intensive because of inventory costs. Whether you make the decision to curate and sell third-party brands or you’ve created your own branded merchandise, there is an inherent cost of building up a stock of inventory that you will inevitably offer for sale. There are also a number of ancillary costs related to this, like inventory forecasting tools, inventory management, shipping, logistics warehousing and the list goes on. But marketplaces circumvent all this quite well by putting the burden of product offerings on the various sellers who are participating on the platform.
And this is the core tenet of this operating model, which cross-functionally applies to product and service-focused marketplaces alike. In fact, even before the proliferation of marketplaces, the team behind Skype, specifically Jonas Kjellberg, created a whole philosophy around this principle, which he coined “innovating in zeroes.” This simply means finding ways to reduce onerous costs to get competitive advantages and make your business more viable. Skype did this in two ways: The first was to use a user’s existing internet connection to place the calls, which significantly lowered server costs. Another was to eliminate customer service completely, as he found users were often just as angry or unsatisfied after speaking with customer service. So why not get rid of it altogether? Within the context of marketplaces, Airbnb has innovated in zeros. They have no hotel maintenance costs, and they pay nothing to clean one of their listed apartments.
But these platforms come with many challenges as well. For starters, depending on the complexity of the marketplace, they can require a great deal of capital to build in order to support a wide range of functionality. Consider, for example, a marketplace that operates globally: It would need to be able to translate all content and product data into a user’s native language. It would need to support multiple currency conversions, and it would need a constant awareness of regulatory considerations, depending on the market the user resides in. Moreover, if the platform allows users to upload product data, it would need a central mechanism to standardize all this data that would be coming from a wide range of different sources, in different formats, etc. Quality assurance would become a real challenge. Groupon had a case in which a seller published a product listing with offensive language that the company only detected after the fact, when the damage was already done.
The challenges aren’t just technological. When discussing marketplaces, the concept of "network effects" will more than likely come up. It describes the phenomenon of scale achieved when enough people have joined a network to make it beneficial for others to also join. Achieving this singular moment is every marketplace’s end game. But establishing this can be devilishly difficult, especially in two-sided marketplaces — with, say, buyers and sellers — because acquiring enough users in tandem to create some semblance of equilibrium is beyond tricky. If the dynamics become lopsided — more sellers than buyers, or vice versa — it can cause attrition, which is the complete opposite of network effects.
Whether your view of marketplaces is positive or negative overall, the ability to construct an environment and observe how two parties interact with one another is fascinating on both a technological and behavioral level. As leading marketplaces mature, there is a growing sentiment calling for the central operators to take a more active approach in order to improve the overall user experience. This may take the form of implementing additional measures to reduce fraud, partnering with a logistics operator to standardize shipping operations or making future membership more selective. Etsy dealt with this firsthand in a case in which a group of investors had sought to recoup their investments because of how widespread the sale of counterfeit items was on the platform — which had implications on the company’s reputation. As the sheer number of niche marketplaces continues to increase, it will be interesting to observe their ability to compete with larger, more generalist platforms like Amazon or Alibaba, whether they use a hands-on or a hands-off operating approach and which other industries they can continue to disrupt through centralization.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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4759ba134d6625ed232367ea6e58cee6
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https://www.forbes.com/sites/forbesnycouncil/2019/01/23/refresh-your-mindset-how-to-shift-to-a-more-positive-outlook/
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Refresh Your Mindset: How To Shift To A More Positive Outlook
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Refresh Your Mindset: How To Shift To A More Positive Outlook
Our life experiences, whether recent or from childhood, form the way we look at all aspects of our lives. They determine how we respond or react to other experiences, and this continues until we no longer think. These experiences form your limiting beliefs — those irrational thoughts that hold you back and restrict your experiences. You might not even realize that you fall prey to limiting beliefs. Unfortunately, most of us do. Limiting beliefs can be detrimental to our professional advancement, so why do we allow them? If you will indulge, read on, and I will share my thoughts on limiting beliefs, why we have them and how to break free from this toxic cycle.
Think back to a childhood experience. Maybe you were picked on because of an outfit you wore to school. Or maybe it was the opposite situation, and you wore something that made you the fashionista of your middle school. Think about how that incident affected you. In a recent presentation, I spoke about this topic, and a well-dressed, middle-aged man shared a story of being made fun of by his father's friend for wearing red shorts as a child. The man told him he looked like a girl, which was devastating for him. He went on to say that he's never worn red to this day and explained how he felt belittled, humiliated and mortified that day, leading him to "see red" when he saw red. Red became an embarrassment to him. After my presentation, he confirmed that this experience influenced him as a grown man, limiting his confidence.
We all have memories and experiences that have influenced our perspectives and shaped our mindsets, some for the better, some for the worse, resulting in higher or lower confidence levels. If you were constantly told to listen and not speak out, help others first, wait your turn, say you’re sorry and be perfect, chances are you will grow up to be perfectly polite but lack the confidence to be powerful, assertive and a strong leader. If you were raised to take risks, be aggressive and not worry about hurting someone’s feelings, you probably learned to be powerful and determined to win. Memories and experiences are compelling tools. The question is: how do we use these tools to keep out negativity and generate a more positive mindset in business?
Here are a few ways to have a more positive outlook.
Are you a glass-half-full or half-empty thinker?
Keep in mind that the glass is always refillable. When we constantly have negative outcomes, it can send us to the half-full thinker lane and result in a why-even-try attitude. Reminding ourselves that the glass is refillable, meaning we can start fresh, gives the opportunity for a different, possibly more positive outcome. Once we have more positive results, our half-full mindset changes.
Don’t be an overthinker!
We all make bad decisions. In business there is limited room for bad decisions. If you have made a few, you may have become an overthinker, which hinders you from deciding. Overthinking stops us from taking new jobs and taking risks as entrepreneurs and holds us back from advancing. When you start to overthink, give yourself a time limit to think out the issue. Make a list of the five worst things that can happen and the five best outcomes, and then decide. Take the leap of faith in your decision, and close your thinking. In time, you will learn to trust your decisions. Once you make the decision, don’t ask others what they think. That will only add to your anxiety.
Go with your gut.
Going with your gut is not just a knee-jerk reaction. Intuition comes from cues derived from past experiences, and you use these cues to help make decisions. For example, when buying a house, you may take into account things like the number of rooms, demographics of the area and the size of the yard. However, what usually makes you decide to buy is the gut feeling you have when standing in the house and being able to picture yourself at home. That kind of gut feeling can help you choose a job or make an important business decision.
Reframe.
When a negative attitude comes to you, reframe the way you look at the situation. Reframing is a coaching technique to view a situation from a more positive perspective. For example, you may feel the need for perfection because, from your experience, everything must be done 100% perfectly or not at all, even though this way of thinking causes great anxiety. Reframing the situation in order to eventually alleviate the anxiety might look like this: “If I do the best I can do, that will make me perfect, no matter the outcome.” By reframing your thoughts, you are lowering the bar of perfection and allowing yourself flexibility that will begin to reduce your level of anxiety.
By reminding yourself that you can break free from the toxic cycle of limiting beliefs by reframing your thoughts and changing your perspective and outlook, you can begin a new journey to becoming a stronger, bolder leader. Little changes can make a difference, so try new things, take risks and reset your mindset. I guarantee this will raise your confidence level and make you a better business leader.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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6412b978bf4a5b6bcce7c823e81f5136
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https://www.forbes.com/sites/forbesnycouncil/2019/03/18/what-kind-of-partnership-structure-is-right-for-your-company/?sh=479d66073936
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What Kind Of Partnership Structure Is Right For Your Company?
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What Kind Of Partnership Structure Is Right For Your Company?
The formation of LLCs has become increasingly common in various corporate structures. They are not only chosen by startups, but by big and established setups and corporations as well because they offer protection in the form of limited liability while retaining desirable partnership associations.
Although partnerships are typically formed by more than two people, there are a number of individuals who have formed LLCs in order to benefit from the protection conferred by this status.
What Is A Business Partnership Structure?
To understand this concept, it is substantially important that you know how the partnership concept works. LLC is basically a partnership-style structure for businesses. It refers to an organization that is formed via a contractual relationship between two or more business partners or entities. These entities can be corporations, trusts and partnerships developed through an oral or written agreement. Partnerships with distinct structure have different tax and reporting requirements compared to individual businesses.
In case there is no partnership between two entities, the profit and losses the entity makes are required to be reported on the tax return of that entity. That means if there is an independent contract between two individuals, but no formal partnership exists pertaining to the business relationship, each individual will report their profit or loss on individual returns that comes under the form called Schedule A.
In short, the partnership type you choose for your business has an impact on multiple important issues that include profit distribution, the personal liability of each partner and several other management responsibilities. Learning about different business partnership types is essential if you want to choose the best option to suit your business needs.
Considering this, here we have enumerated different partnership types, along with their differences.
Business Partnership Structures
1. General Partnership (GP)
This is one of the common types of partnership structures opted for by businesses in which two or more co-owners share profits together. There is only one default rule that has to be there between all business partners. The only way one can change it is through a written agreement.
Each business partner has equal rights and authority in the management. The same rule applies when it comes to sharing liabilities and debts in the business partnership. Each partner is liable for the torts committed by co-owners in a business partnership.
2. Limited Partnership (LP)
This partnership structure is a combination of two or more partnership forms in which one is limited and the other is a general partner. A limited partner in this partnership has no role in the active management which is lead by the general partners. Their liability is also limited to the contributed capital of the limited partner’s partnership.
The business partnership is not beneficial for all the partners, especially general partners. They do not have the same liability protection as enjoyed by limited partners. General partners in case of a financial loss may be held liable for business debts and taxes.
3. Limited Liability Partnership (LLP)
The partnership structure has much more common with LLC (Limited Liability Company). It is one of the most opted for partnership types due to its flexible and balanced structure. That is to say, an LLP gives partners the same benefits in terms of taxation and other liabilities. All the partners in an LLP will be protected from the liabilities and debts of the business. Not only this, but an LLP protects one partner from the actions of the other partners.
To put it simply, forming this partnership means all the partners will enjoy the same protection from liability as afforded to a company. It further brings flexibility in the operation, which is the main benefit of this structure. However, there are certain characteristics of an LLP that are not common in other partnerships. The business partnership is subject to some tax rules. The business entities can avail the benefit of pass-through taxation rules.
4. Multi-Member Limited Liability Company (LLC)
This business structure is an extended form of an LLP that typically has two or more than two partners. The reason it is called "multi-member" is that it doesn’t limit the number of partners. In this partnership, both individual people and individual companies can become the partners of an LLC.
The reason so many businesses opt for multi-member LLCs is to shield their personal assets. Limited liability companies do the same by limiting the liability amount that a company owner might be exposed to in case of a lawsuit. The most common forms of multi-member LLCs are husband and wife LLCs and family-owned businesses.
Multi-Member LLC Versus Single-Member LLC
A multi-member LLC is considered ideal for family-owned businesses. For example, for your family business, you want to create a multi-member LLC to protect your property and personal assets. One way to do it is to list individual members of your family as LLC partners like:
• Parents
• Children
• Spouse
Plus, when you form an LLC with multiple partners, the IRS automatically classifies your company as a multi-member LLC for federal income tax purposes.
A single-member LLC, on the other hand, simplifies the taxes to a great degree. For example, if you and your partner own multiple properties and each of them is incorporated as an LLC, you can group them in your single-member LLC to be later owned by a single multi-member LLC. This is an easy solution to protect your properties and avoid being subject to the individual tax return.
Although single-member LLCs and multi-member LLCs provide the same protection for personal assets, they do not protect companies from personal liabilities. That means if a person is declared bankrupt, the court can seize their assets and properties, including those attributed to an LLC. If it’s a multi-member LLC, company assets cannot be seized without the agreement of the LLC member.
However, if it’s a single-member LLC, the assets will be considered the owner’s property and are liable to be seized and sold.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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65122674398f90d8c08dbe5660401cf6
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https://www.forbes.com/sites/forbesnycouncil/2019/04/26/how-to-make-a-plan-to-exit-your-business-on-your-terms/
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How To Make A Plan To Exit Your Business On Your Terms
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How To Make A Plan To Exit Your Business On Your Terms
When it comes to retirement, business owners tend to be the biggest gamblers. An employee has a 401(k), an IRA and savings they've accumulated. But what about the business owner?
Business owners are hardworking, smart and usually successful individuals. They tend to be masters of planning for profitability now and may not prepare and plan for tomorrow because they are constantly putting out fires today.
There are only three things certain in life: death, taxes and that a business owner will exit their business someday. If you own a business, you need to plan for this exit in advance.
Why is your exit from your business so important to retirement?
You may view your business as your retirement nest egg, which means your retirement is dependent on how much you sell your business for when you exit. Your wealth is tied up in your business, but do you have a plan on how to get it out? There are many potential pitfalls for not planning how to leave your business in advance. So, how can you avoid them?
Maximizing your retirement doesn't need to be a gamble.
If you prepare in advance, you can eliminate or minimize many of the issues that can arise when you want to exit your business. Start thinking about your exit 3, 5, or 10 years in advance. The longer you prepare, the higher the likelihood of the outcome you desire.
It's also important to prepare a backup option. You may think your manager or your daughter will take over when you’re ready to go. But what if they can’t or don’t want to? Do you want to be forced to fire sale your life's work, or worse, be forced to work far longer than you desired? Having an alternative plan is that backup parachute you hope you never have to use but are happy you have if you end up needing it.
When it's time, make sure the business is in sellable shape. Just like when you sell a house, you want it to look as appealing as possible to a potential buyer. This includes:
• Maintaining and updating your operating agreement as needed. Your operating agreement says a lot about the business's financial and functional decisions. Does it match what you are currently doing? Does it explicitly exclude or allow for the type of transaction you envision for your exit?
• If there are multiple owners, always maintain and update your buy/sell agreement. Partnerships are like marriages: When things are good, they are really good, but when it comes time to break up, it can get ugly. Have an agreement that reflects the proper value of your business and explicitly states how the business transfers if certain situations arise, like the death or disability of a partner.
• Maintain employment contracts that incentivize employees to stay after your departure. This could include a "stay bonus" or "golden handcuffs" to reward them for staying after you’re gone. Key employees are vital to the profitability and growth of a business. When someone buys your business, they want to make sure these people are staying in place.
• Protect your business from key employees' unexpected departure or incapacity with key person insurance policies. Just as it's important to protect your business from an employee leaving when you exit, you must protect the business if something happens to them before you leave, which could have the same negative impact, but causes you to bear the brunt of the loss, not the buyer.
• Protect your intellectual property. Most owners don’t realize there was something they needed to protect until it was too late. Many owners don't realize some things they do are unique and an asset, which enhances the value of their business. Look at what makes your business unique, and explore if you can protect anything as a trade secret or patentable process or device.
• Maintain vendor contracts or leases that are transferable. Vendor contracts and leases are direct line items that affect a company's profitability. Are they voidable on a material change in ownership? You want to have the ability to transfer these items, as they can drastically change the value of your business if lost. If you have a restaurant in a key location, what value does the restaurant have if, upon sale, the landlord can triple the rent or kick out the new owner?
Work with an experienced team of advisors from the minute leaving even becomes a thought. This should include a Certified Exit Planner (CExP), a business attorney, a CPA, a financial advisor, a business consultant, a valuation expert and others, depending on the nature of the business. Each will have valuable input from different perspectives that are necessary to avoid pitfalls.
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 990 STEWART AVE SUITE 200, GARDEN CITY, NY 11530, ph#516-745-5600. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. National Financial Network is not an affiliate or subsidiary of PAS or Guardian. This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2019-77238 Exp 04/21
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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57758afd39de0a5a75b0205d7ef6b167
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https://www.forbes.com/sites/forbesnycouncil/2019/05/13/why-business-partners-should-always-have-buysell-agreements/
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Why Business Partners Should Always Have Buy/Sell Agreements
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Why Business Partners Should Always Have Buy/Sell Agreements
Going into business with someone is very similar to a marriage. There will be ups and downs, great memories and trying times. For the same reason many wealthy individuals see value in prenups, every business partnership should see value in a buy/sell agreement. It's a plan for your worst days that you make during your best days and when partners are on the best terms.
What is a buy/sell agreement?
A buy/sell agreement is a contract between business partners that outlines conditions under which a partner’s interest in the business will be bought out by the other partner or the business itself. You and your business partner may work great together, but if they passed away, would you and their spouse be as compatible? This is why a business should have a buy/sell agreement stating the triggering events, the value of the business (or calculation method), how it is funded and how the purchase will occur if a partner has a triggering event.
What types of events are covered by a buy/sell?
The most common event covered by a buy/sell agreement is the death of a partner. As I used as an example before, your business partner will likely not want to be your spouse's business partner if you die. The buy/sell agreement outlines the actions that are taken upon the death of a partner.
Many buy/sell agreements stop there, which is a major issue since there are many other conditions to address. The next most common triggering event covered is retirement or exiting the business. The agreement will state at what value and how the exiting partner shall relinquish their interest. It could be as simple as a right of first refusal to the other partners before selling to an outsider, or it could be a set formula and payment schedule the remaining partner must pay upon notice of retirement.
The most commonly overlooked event a buy/sell should also address is a disability. If a partner becomes permanently disabled or disabled for an extended period of time, does the other partner want to pay them their share if they aren’t working? A well-crafted buy/sell agreement will also address this and the actions that require the disabled partner to be bought out at a specified value.
How is it funded?
Many businesses are worth far more than what they have in the bank, and even if they have enough money in the bank, it usually does not make sense to drain all their money on a buyout. So how is it funded? Each area of a buy/sell is funded differently.
Typically, if a buyout is triggered by death, it is funded through life insurance. Upon execution of a buy/sell agreement, each partner has a life insurance policy equal to the value of their ownership interest taken out. The most common mistake is that partners try to save money by acquiring term life insurance, and the insurance expires prior to a triggering event and creates a similar if not worse event than if they had no agreement. I strongly recommend using permanent whole life insurance to avoid this problem.
When it comes to retirement from the business, there are many creative ways partners find to fund this. One common method is a percentage of revenue from the business over a set number of years. Other partners set a percentage of profits each year into a separate account to eventually fund this event. Some look to acquire funding from a bank when a partner gives notice of their desired exit. There is no universally correct answer for this, and partners should consult their attorney, CPA and financial advisor on what works best for them.
Disability buyout is the most overlooked and, in my opinion, the most important event that should also be covered by insurance. There are specific disability policies designed for disability buyouts. But you need to be aware of the language. What you consider a triggering disability event and what the insurance company deems a triggering disability event may not be the same. It is imperative this language matches, or you may have an event that triggers the agreement to cause a buyout, but your insurance policy says no. You want to acquire a disability buyout policy that has a strong own-occupation coverage clause and have that language placed in the agreement so there is no confusion.
As with many things when it comes to business, a buy/sell agreement is not something a single advisor should consult on. It is recommended you have your business attorney draft the agreement, your CPA review the tax ramifications of how the agreement works and a financial advisor review proper funding. Failing to plan is setting up a surefire plan to fail. Create your buy/sell agreement early on in your business, and re-evaluate it every three to five years.
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 990 STEWART AVE SUITE 200, GARDEN CITY, NY 11530, ph#516-745-5600. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. National Financial Network is not an affiliate or subsidiary of PAS or Guardian. This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries, and such opinions are subject to change without notice. Guardian, its subsidiaries, agents and employees do not provide tax, legal or accounting advice. Consult your tax, legal or accounting professional regarding your individual situation. 2019-78412 Exp 04/21
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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0cb72f423f65a2ae8389521cbb405977
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https://www.forbes.com/sites/forbesnycouncil/2019/06/13/three-ways-to-use-your-pos-system-in-your-advertising-efforts/?sh=733fc4b71dca
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Three Ways To Use Your POS System In Your Advertising Efforts
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Three Ways To Use Your POS System In Your Advertising Efforts
Effective advertising helps your business grow and expand within your community and beyond. An eye-catching advertisement removes outdated perceptions about your business. To advertise with an ideal, current message, it’s important for store owners to understand their customers. A well-crafted advertising campaign targeting an ideal group can attract more customers and increase revenue. Small store owners, often on limited budgets and seeking affordable business-growing solutions, can benefit from insights into their customers’ spending habits and patterns.
Because I run a business that sells a point-of-sale (POS) system, I know your POS system software can provide a competitive edge to identify your niche market that you may not be aware of. This can help you build an advertising campaign with a high return on investment (ROI).
Gather Consumer Data
For a grocery, liquor or tobacco store, modern POS software allows you to automatically collect and tally sales and inventory information at checkout. The POS helps you identify the preferences of consumers toward the products most prevalent among your local community. You can learn about your customers’ demographics, buying patterns, seasonal preferences and more. Knowing who your customers are can help you effectively market your products that appeal most to them.
Understand Your Market
Your business revolves around your customers. Many businesses these days are advertising and selling online. However, this method of business is not effective if your customers are not internet shoppers or if your products cannot be sold online.
For example, if you have a grocery store and you are selling fresh produce, refrigerator products and lottery tickets, your target customers are walking in and out for quick errand runs, not picking out bananas and winning numbers online. Advertising online may not be your best venue for reaching local convenience-store shoppers.
To be effective, your ads and offers must entice local customers by offering something unique to their needs. Getting to know your customers and their patterns is key for effective advertising that yields optimal sales results.
Highlight Your Products
The best method of spreading the word about your business is through advertising. If your local store has added a new range of products, then highlighting them via eye-catching advertising campaigns will attract consumers.
People are drawn to offers that save them money, and they will keep coming back for more, which, in return, will boost your sales and profitability. Some stores advertise in newspapers and local community publications. Some retailers send out mailings or hand out flyers. Did you know that some modern POS systems have a customer-facing ad screen that helps promote offers or deals at the checkout counter? While customers are shopping or standing in line to pay, relevant ads are flashing on the screen at eye level to increase brand awareness and encourage purchasing (and impulse buying).
If you have a POS that features ads on the customer-facing screen, make sure it’s not blocked from view, because it can help your sales go up. An ad screen on your POS could also be an incredible opportunity for you to market your own in-store promotions. Some POS systems that have ad screens also integrate a built-in customer loyalty program that can work hand in hand with ad campaigns to prompt customers to visit your store more often and spend more.
Overall, advertising spreads the word about the presence of your store and the unique value of your offerings among the local community. Publicizing your specials within the community and via your POS can substantially increase your customers and revenue.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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0c9c106566313a92b64c9e4716acf357
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https://www.forbes.com/sites/forbesnycouncil/2019/06/19/how-content-marketing-can-help-your-small-business-nine-tips-from-new-york-based-entrepreneurs/
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How Content Marketing Can Help Your Small Business: Nine Tips From New York-Based Entrepreneurs
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How Content Marketing Can Help Your Small Business: Nine Tips From New York-Based Entrepreneurs
Content marketing is making a real impact on small businesses looking to reach customers at an affordable price. Creating content that resonates with your customers can help generate interest in your brand while boosting your expertise in your industry at the same time.
When content marketing is done right, it can really help take a business to the next level. Even in a highly competitive market such as New York, the right content marketing efforts can help you stand out from your rivals and become more visible to your target audience.
To help you take advantage of content marketing the smartest way possible, we asked members of Forbes New York Business Council to weigh in with their top content marketing tips for small businesses in New York. Here’s what they had to say:
Forbes New York Business Council members share their best content marketing strategies to help you grow your small business to new heights. Photos courtesy of the individual members.
1. Give Them What They Want
As a business owner, it’s really easy to want to push your own agenda as to what you show the customer, but if they love someone that you may not necessarily love, give them more of that! It’s not about you, it’s about what customers want. Give them what they want and they’ll be back for more. Stick to what works. - Hoda Mahmoodzadegan, Molly’s Milk Truck + F'in Delicious Beverages
2. Be Original
One of the worst things I see when I look to patronize or connect with another business is if their social media is full of stock photos or is obviously being run by a third party. To me it shows that they don't take pride in what they actually do in their own small business. Show what you do and what a great job you do at it. Seeing someone else's work doesn't make me want to go to you. - Edward Alvarez, Edward A Alvarez, DDS, PC/NYCLaserDentist
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
3. Don't Be Afraid To Share What You Know
I used to think that everything I learned in 15 years designing stores and interiors should not be shared. After all, clients hire me for that knowledge, so why give it away? In the past year I started writing for Forbes or for my blog, giving out all my "secrets", and I got a lot of exposure from it. Clients now come because of these writings. - Sergio Mannino, Sergio Mannino Studio, we design interiors and we create brands
4. Leverage The Power Of Audio
I admit I’m biased, but I think podcasting is one of the greatest ways to get your message out, no matter how big your business. All of your production and distribution needs are right there on your phone. It’s infinitely less costly than video, and it’s a medium that is perfectly catered to niche topics and audiences. - Francesco Baschieri, Voxnest
5. Identify Your Target Audience And Their Needs
Identify exactly who you’re speaking to and what keeps them up at night. Then think about how something you are knowledgeable about can give them a leg up. And don’t be afraid to give away the secret sauce. Some of the most successful business consultancies in the world give their entire process away in book form (StoryBrand, EOS, E-Myth Worldwide, etc.). - Tom Conlon, North Street
6. Create Meaningful, Entertaining Content
Keep your audience engaged, curious and wanting to learn more. Write interesting articles, create entertaining video and share your knowledge as freely as possible. Content allows potential clients to get to know you as a person and your company's brand. - Jill Strickman, GENUINE: The Real People Company
7. Focus On Providing Value
Digital content is often the first impression consumed by your consumer. Offer value, clearly represent your brand and develop a strategy built for your consumer for every platform. Here are a few questions to help develop a content strategy: 1) Does it offer value to the consumer? 2) Does it communicate what, why and how? 3) Is it confusing or clear? 4) Is it consistent with the brand message? - Rob Taormina, TalkIQ Media
8. Highlight Unique Company Endeavors
Highlight unique and authentic company endeavors. Two unique and authentic endeavors we've highlighted include a social campaign for women's month, which highlights both our team members and female clients through various platforms, and an upcoming podcast entitled "The Brick Wall," which stems from a team phrase used to power through even the biggest challenges in the office space. - Warren H. Cohn, HeraldPR
9. Create Solutions For Your Ideal Customers
As a small business, you need to differentiate yourself from competitors. But, when creating content, be careful not to talk about yourself. Once you have identified who your ideal customers are and where they are consuming content, you should create content that is focused on them, not you. Create solutions for them—provide a "what's in it for me" and your content marketing will soar. - Andy Seibert, Imprint
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984ecabdcf67d2124d356c4e117d81c6
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https://www.forbes.com/sites/forbesnycouncil/2019/07/11/how-to-create-viral-movements/
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How To Create Viral Movements
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How To Create Viral Movements
One of the most frequent questions I receive as a marketer is how to drive enough attention or momentum behind a brand that the brand starts to propel itself organically and virally across culture. This is a major concern among brand directors, as it often marks the difference between success and failure in today's digital age.
Further, as a digital marketing agency owner whose success is based on driving viral growth for brands on a repeated and sustainable basis, it is not merely good enough to drive viral growth as a fluke or on a one-off basis.
No, we are in search of finding a scientific and reliable way of driving brands' viral growth and creating cultural phenomena over and over again.
The Pyramid Set Up Of The Digital Marketplace
One of the most insightful realizations that a brand or direct-to-consumer business owner can make is to take advantage of the inherent way the digital marketplace is set up.
In nearly every product vertical, there will be a pyramid of intended consumers you're speaking to, with those at the top of the pyramid exerting a greater degree of emulation and influence over the consumers under them.
To be able to harness the inherent topple-down nature of this pyramid setup is very powerful.
Top Down, Topple Over Into A Trend
By this, we mean identifying the consumer tastemakers (which in our age constitute social media influencers, celebrities, pundits, etc.) who have the greatest degree of clout over your intended audience.
High-level influencers are relatively easy to identity and engage once you know how. If you don't already have relationships with influencers, search for them directly on social platforms like Instagram by searching out hashtags like #styleinfluencer and #fashioninfluencer. You can even get more specific by choosing to use market-focused hashtags like #lablogger or #nyblogger. By simply inputting these terms, you can swiftly find Instagram's most popular and highest-trending posts made by profiles who brand themselves with the hashtags you're using. Through one simple click on their profile, you'll have access to direct-message or email them (email contact info is sometimes provided in their bios) to tender your offer details.
Another set of great resources are social media analytics tools such as Alexa or Dovetale platforms. On dovetale.com, you can reap even more targeted results by running an advanced search in any of the markets you're seeking to engage influencers in that are filtered by key criteria such as profile type, audience demographic composition, follower size and engagement level.
Once on-target influencers are identified, a perceptive brand that wants the pyramid setup of the digital market to work for it will harness a coalition of these upper-rung tastemakers to initiate a trend around its brand (as published through social media or their blogs) that feeds down, often creating a domino effect rung by rung through the pyramid.
Although higher-level tastemakers often need to be financially incentivized to get behind a product, the good news for small business owners is that once there is a wave of such elite tastemakers endorsing it, mid-tier and lower-level influencers will often become interested in connecting with a brand to understand why it's being used by the heroes they emulate. Through setting up open communication channels with these interested influencers, brands can often organically activate (without financial compensation) a lot of talent who now view the brand as a desirable trend. They co-brand themselves with your brand, and this organic onboarding process will drive this pyramid-shaped campaign until it topples over into culture itself and becomes a real trend amongst consumers.
Herein, you can see virality in effect, as what started as a planned, premeditated movement becomes more natural step by step until the line between marketing and natural cultural propulsion disappears. At this point, to further amplify virality, you can ask your influencers to prompt their fans and followers to repost through hashtag or product giveaway competitions. This will trigger UGC (user-generated content), which can snowball at an exponential rate if enough influencers are pushing interactive initiatives until the point that your trend has become predominantly driven by the public.
And, at a certain point, you will gain the merit of press consideration due to the fact that your thoughtfully structured influencer campaign's impact has transcended your design and now become its own autonomous force in culture.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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17e548aa16be215a7c6f3596be5ee138
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https://www.forbes.com/sites/forbesnycouncil/2019/07/29/five-cues-to-take-from-lifestyle-hotels-when-designing-your-workspace/
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Five Cues To Take From Lifestyle Hotels When Designing Your Workspace
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Five Cues To Take From Lifestyle Hotels When Designing Your Workspace
Modern workspaces are as diverse as the companies that occupy them. In an age when technology allows for more flexible and less formal working environments, it’s important to consider how your employees are most effective. Arranging and outfitting your space in a way that maximizes productivity and creates a comfortable atmosphere for constructive, content staff is paramount to the company’s success and, moreover, projects an outward-facing image for your clients and customers.
Lifestyle hotels are a crucial point of reference for organizing such a space. With attention paid to how people move throughout a room, where amenities and services are located, and the style of décor, lifestyle hotels are leading examples of up-to-date psycho-social philosophies implemented in the real world. They are increasingly dynamic spaces that heed contemporary thought on human psychology and the change in the way we live, work and play.
Here are five cues entrepreneurs can borrow from lifestyle hotels when seeking to create a successful workspace.
Biophilia
Enter a newly opened hotel lobby, and you’re likely to find a cacophony of hanging plants and green features. Studies have proven that biophilia (a hypothesis that suggests humans possess an innate tendency to seek a connection with plants and nature) can reduce stress while enhancing the workplace. By implementing green walls, plants, natural materials, wood and stone, employers can create an environment that stimulates the mind and minimizes anxiety, allowing for more productive output. The use of natural elements creates a sense of calm in what can be an otherwise chaotic space.
Multifunctional Spaces
In the past, maximizing every square inch for a singular purpose was a vital consideration in office design. With the advent of smartphones and portable technologies, spaces that may have been deemed “useless” just a decade ago allow for a variety of iterations now, from informal meetings and brainstorms to private nooks for more delicate communications. In hotels, these spaces are used for casual gatherings and moments between activities for catching up on emails, winding down or possibly enjoying an evening cocktail.
Open Storage
Lifestyle hotels are keyed in to the consumer experience; after all, their business depends on it. One simple way of making a space more efficient is open storage. In a hotel, this system allows guests to see all of their belongings, making it easier to ensure they remember them. Visible supplies and materials increase effectiveness by minimizing the time employees spend searching dark, stuffy closets (or just hiding out) and give a clean visual on supply levels, as well. Additionally, open closets maximize natural light throughout a space and require consistent attention to ensure that the office is clean and organized at all times. Balancing open and closed storage within the closets by including convenient compartments and drawers in harmony with hanging space ensures materials are neat yet easily accessible.
Statement Lighting
In an open-plan space, a statement lighting fixture can make an impact in several ways. First, it serves as an element that creates an entrance moment. Second, a well-considered lighting feature can serve to create a succession of vignettes within an open space, subconsciously separating a reception area from a workspace. Adjustable levels of lighting also help adjust to changes in daylight and can soften and warm the difficult afternoons in the dark of winter.
Mental Wellness Space
As hotels adapt to the needs of guests, they are paying attention to their mental needs alongside the physical. Many airports have adapted to provide quiet spaces for travelers to reflect while in transit, and meditation spaces are becoming increasingly common. Similarly, in stressful work environments, a meditation space can help employees take time to unplug, creatively ideate and balance the weight of startup pressures. Providing a space for quiet contemplation will help your team to work with a clear mind and maximize their efficiency.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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d939a3842b5a1b72931e1e0e172fb6e2
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https://www.forbes.com/sites/forbesnycouncil/2019/09/20/13-smart-ways-to-increase-revenue-from-your-existing-customers/?sh=77970d9d3f78
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13 Smart Ways To Increase Revenue From Your Existing Customers
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13 Smart Ways To Increase Revenue From Your Existing Customers
Lead generation and converting new customers is important for any business. However, it's often wise—and easier—to focus on increasing the revenue you're bringing in from existing customers. Instead of trying to forge a new relationship and convince a stranger to buy from you, you can start an upsell or cross-sell conversation with someone who already sees your value and quality.
With the right strategies, you can leverage your current customer base to boost your business's profits. Here's how the experts of Forbes New York Business Council recommend increasing revenue from existing buyers.
Forbes New York Business Council members share how you can grow your business using the customers you already have. Photos courtesy of the individual members.
1. Reward Loyalty
Loyal customers should be rewarded! Offer freebies or incentives to keep people coming back. I implemented a quality customer loyalty card and nothing gave me more joy than seeing customers coming back and pulling out their loyalty cards. Customers became cheerleaders for my business and it worked splendidly. I enjoyed the continued business and they enjoyed the freebies. Everyone wins. - Hoda Mahmoodzadegan, Molly’s Milk Truck + F'in Delicious Beverages + BAḴT Global
2. Provide A Financial Incentive For Booking Additional Work
When you finish a job and you did a great job, offer your clients a discount or another incentive to provide you with additional work within a given time frame. At The Bid Lab, we offer our clients a complimentary Bid Finder report when clients finish their first bid with us. It's a way to continuously deliver value to our clients, as well as incentivize them to engage us for additional services. - Maurice Harary, The Bid Lab
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
3. Give Them Lower-Cost Add-On Options
McDonald's is a burger joint, but makes its money on all the items that customers pay for along with the burger. See how you can help the customer get more of what they want by giving them the option to add items that accompany your product. So if you do logo design, can you offer a social media kit to align with all the social platforms? If it's beard oil, maybe add a beard brush. - Jason Yarusi, Yarusi Holdings, LLC
4. Find Solutions To Their 'Backburner' Problems
Identify a project need they had and maybe forgot about. We have noticed that while many of our customers are excited by a new project, they might’ve put another project on the backburner. Having a relationship where they can identify these “old” projects has helped us increase potential revenue. We have helped by finding solutions for them on new and old projects. - Samuel Mikail, SM Group Holdings Corporation
5. Leverage Existing Relationships To Make New Ones
Referrals are the biggest part of my business, and I always let my existing clients know that. By reminding your existing loyal clients of that, you open the door for them to suggest and recommend your services to their network. Even though this is an indirect increase in revenue on existing customers, it is one of the best ways to create a replenishing pool of clients and new revenue streams. - Alex Weissman, Elite Travel Agency
6. Listen Carefully For Unmet Needs
Get into a conversation with a customer. It's universally true that they will share a frustration or two. Provoke those discussions, and then reflect on them. Listening to customers talk about their problems will often yield new insights into services or products or solutions you can offer. Sometimes, just commiserating can build trust—and we all know trust converts into revenue over time. - Christopher Johnson, Inlet LLC
7. Encourage Bundled Services From The Start
The goal is to sell them one thing, two things, then three. It’s like the line in the movie A Bronx Tale, when they close the door to the bar and trap the bikers inside: "Now yous can’t leave." Once you lock a customer into six or seven different products, they can’t just walk away. They’re on a combined bill for multiple services and you’ve bundled their solutions together. It’s too sticky. - Mike Luzio, The LVE Group | Self-Made Entrepreneur | Investor | Speaker
8. Share Great Content On A Regular Basis
This can be done by updating the website with new content and posting or sharing the same on all of your social media channels. Once a potential consumer turns into a legitimate customer, it is smart to engage with them through your email marketing efforts. Within those email marketing efforts, look to always provide valuable information that relates to your company through e-books, PDFs, etc. - Corey Lewis, 1AND1 Life
9. Target Customers With Email Marketing Campaigns
Email marketing is a cost-effective way to increase revenue as well as stay top of mind with existing customers. Businesses can easily utilize email to thank customers, share special offers and provide value such as tips—all things that encourage people to return to your business. You can also measure the success of email through send times and open and click rates to get the most engagement. - Josh Cohen, The Junkluggers
10. Get To Know Your Customer's Needs And Pain Points
Getting to know a customer well allows businesses to have successful upsells and sales of complementary products or services. The ability to address customer's needs and pain points creates better opportunities for more successful target marketing, an increase in referrals and a steady increase in the revenue stream. - Nionila Ivanova, IT Creative Labs
11. Share Your Knowledge And Experience
You can always bring additional value by analyzing the way you do business with your customers and how they do business with you and their clients. Bringing your industry knowledge and experience to help them solve a problem or offer some competitive edge is quantifiable. Becoming a strategic consultant or adding a new service line item could positively impact you and your client's business. - Jeanne Hardy, Creative Business Inc.
12. Run Targeted Upsell Offers
Run targeted promotions to existing customers with upsell offers. Be strategic and don't just offer discounts. Try adding variants of popular products or complementary products to your bestsellers—for example, a jacket that pairs with their pants or a premium plugin for a software product. Once you've tried one channel, expand to others, like social media ads in addition to email marketing. - Lana Li, Idea Glue
13. Create Constant User-Feedback Loops
New customer acquisition can be costly, while the customers you already have know your brand and have engaged with it. Create channels for client feedback. Why are customers choosing you? What value are you offering? How can you target your products or services to build on that value for clients? The answers to these questions become clear through customer engagement, surveys and data aggregation. - Kaivan Shroff, Institute for Education
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cc66b81e4f61522e1ab2170fe7231386
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https://www.forbes.com/sites/forbesnycouncil/2019/09/24/how-to-invest-in-meaningful-rfp-efforts/
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How To Invest In Meaningful RFP Efforts
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How To Invest In Meaningful RFP Efforts
For businesses committed to reaching new heights, responding to requests for proposals (RFP) is a strategy too lucrative to ignore. RFP opportunities decide billions of dollars in funding across all industries, but what is the best way to tap into such a valuable and competitive ecosystem?
If you want to make a meaningful impact on your business through grants and proposals, you need to invest accordingly. But that still leaves the question of what kind of investment you should make to get the highest ROI possible out of the RFP process.
You can utilize different kinds of RFP helpers, though each has its own instances of use cases.
Some organizations choose to expand their internal teams by hiring an RFP writing expert. Independent analyses estimate that a competitive salary for an internal RFP writer begins at more than $100,000, including benefits. If you want an RFP writer with more than one year of experience, the cost will likely be significantly higher.
Also, most proposals require diverse competencies to craft a winning bid. Writing, research, financial analysis, digital design and other critical components can all make the difference between winning and losing a bid. Finding an internal RFP writer who can handle everything may be difficult and is likely to cost a premium.
Additionally, it is important to remember that no organization putting out an RFP wants to feel like its project is not worthy of your time and resources, which it may if it receives a standardized response created by someone without the required level of expertise. Even a straightforward RFP with a narrow scope still requires a certain amount of personalization and creativity. An RFP that is tailored to the contracting organization’s needs and priorities is your best chance to succeed.
Although it is important to realize the factors that should inform a strategic approach to winning new contracts, we aren’t trying to scare you off! Winning the right RFP opportunity can change the entire course of a business, so it is important for everyone to base their calculations on all the relevant factors.
For instance, you can utilize independent RFP writers who work on platforms like UpWork. This is best if your budget is really tight, though, be aware that you may not receive guaranteed expertise or get your bid in on time. Communication and accountability may also be hard to gauge when choosing someone via Upwork, so be sure to vet this person thoroughly.
If your firm is larger and has a bigger budget, you can retain a large consulting firm, though you're likely to work with a junior RFP writer for most of the process. If your budget is limited but you are willing to invest in this process, you can hire a boutique consulting firm that works with subject matter experts at your firm to obtain industry-specific information.
But, no matter which path you take, ensure you have the appropriate guidance to capitalize on every RFP opportunity. Experience is key when it comes to crafting winnings proposals, but you don’t have to know it all to win big.
Forbes New York Business Council is the foremost growth and networking organization for business owners in Greater New York City. Do I qualify?
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31190f052961431e7ce996c62be1e5e6
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https://www.forbes.com/sites/forbesnycouncil/people/elieykatz/
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Elie Y. KatzForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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Elie Y. KatzForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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23d182e7521d5df6fc875c89a164e287
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https://www.forbes.com/sites/forbesnycouncil/people/marcusguiliano/
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Marcus GuilianoForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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Marcus GuilianoForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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2cd8c9c8c6b116ab45b01863f195529e
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https://www.forbes.com/sites/forbespr/2013/08/14/forbes-announces-third-annual-worlds-100-most-innovative-companies-list/
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Forbes Announces Third Annual List Of The World's 100 Most Innovative Companies
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Forbes Announces Third Annual List Of The World's 100 Most Innovative Companies
New York, NY (August 14, 2013) – For the third year in a row, Salesforce.com tops Forbes’ 3rd annual list of The World’s 100 Most Innovative Companies (p. 96). Alexion Pharmaceuticals follows at No. 2 for the second consecutive year, with VMware at No. 3. Rounding out the top five are Regeneron Pharmaceuticals and ARM Holdings , respectively. Amazon is No. 7. The complete ranking is available at www.forbes.com/innovative-companies and will be featured in the September 2 issue of Forbes magazine.
A related story, “The Miracle Workers” (p. 86), profiles Regeneron Pharmaceuticals, whose team of researchers and scientists have developed a method of inserting DNA into mice to more quickly generate human drugs. The company expects sales to jump 55% this year to $1.3 billion.
ALSO IN THIS ISSUE:
COVER STORY: Big Brother’s Brain (p. 74) – The eccentric, philosophical CEO Alex Karp has turned Palantir into the premier terrorist-tracking, all-seeing, multibillion dollar data mining machine. Customers range from the NSA, FBI and CIA to Bank of America and News Corp. As a debate over civil liberties versus consumer protection ensues, Palantir has projected revenues of $450M this year.
FEATURE STORY: The Shortest Route to Riches (p. 112) – Isabel Dos Santos, the Angolan President’s oldest daughter and the richest woman in Africa (worth $3 billion), acquired her wealth through questionable diamond, telecom, banking and oil deals blessed by her father. Meanwhile, 70% of Angolans live on less than $2 a day.
FEATURE STORY: The Internet’s Drug Kingpin (p. 132) – An online interview with Dread Pirate Roberts, a philosophy-spewing, clandestine, multimillionaire drug lord who runs Silk Road, the Web’s business bazaar for heroin, cocaine, marijuana and other drugs. Increasingly sophisticated anonymity tools have created a bustling online narcotics market, and millions of dollars for the taking.
SOFTWARE: Chasing Siri (p. 52) – Nuance is angling to maintain an edge in the highly competitive speech recognition industry with its next big technology – Wintermute, an invisible virtual assistant that will anticipate a consumer’s needs from machine to machine.
BIG DATA: Big Brother is My Co-Pilot (p. 58) –Drivers can get cheaper rates by letting insurers monitor their cars. What happens when the data are used against them?
SPORTS: The NFL’s Most Valuable Teams (p. 38) – The NFL continues to be the most lucrative sports league in the world, with the average team worth $1.7 billion, up 5% from last year. The Dallas Cowboys have been the most valuable NFL team for the 7th consecutive year. Football’s Top-Earning Players are featured on p. 42.
For these stories and more, visit www.forbes.com. Follow Forbes on Twitter (www.twitter.com/Forbes). Become a fan of Forbes on Facebook (www.facebook.com/Forbes).
Contact: Melanie Scharler at [email protected] or 212.366.8966.
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d9009495aad4b0687a965f0dbf90d779
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https://www.forbes.com/sites/forbespr/2014/04/15/forbes-launches-sixth-ebook-in-its-2014-series-curbing-cars-americas-independence-from-the-auto-industry/
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Forbes Launches Sixth EBook In Its 2014 Series: Curbing Cars: America's Independence From The Auto Industry
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Forbes Launches Sixth EBook In Its 2014 Series: Curbing Cars: America's Independence From The Auto Industry
NEW YORK (April 15, 2014) – Forbes announced today the release of the sixth title in its 2014 e-book line, Curbing Cars: America’s Independence From the Auto Industry, by Forbes Contributor Micheline Maynard. The new e-book, produced and distributed by Vook, looks at one of the biggest changes over the past decade: Americans are driving less, and fewer teens and young people are getting their driver's licenses.
Americans are looking at alternatives to driving cars, such as using public transportation and taxi services, car-sharing and bike-sharing opportunities, and walking to more destinations. While some are giving up cars completely, others are adopting a style called "driving light" and using their cars when there are no other transportation options. This e-book explains four reasons as to why this is happening:
Mobile apps and other types of technology are making it possible to do things that used to require owning a car. For young people, a smartphone ranks higher in importance than a car. After the recession of 2008, people are more attuned to the expense involved in owning a car. The average price of a new car is $33,000. Car payments, parking, repairs and gasoline are additional expenses incurred for a car that might be used less than an hour a day. For some, giving up a car is a way to protect the environment, so they prefer riding a bicycle or taking public transportation. The Obama administration, which spent $82 billion to save the U.S. auto industry, is spending additional billions for cities to create new bike lanes, streetcars, light rail systems and other non-automotive infrastructure.
Forbes Contributor Micheline Maynard is a Reynolds Visiting Professor of Business Journalism at the Cronkite School at Arizona State University. She is the former Detroit Bureau Chief for the New York Times and was senior editor of the public media project Changing Gears. She has authored four books, including The End of Detroit: How The Big Three Lost Their Grip on the American Car Market. Forbes’ 2014 e-book line will feature several unique subjects over the upcoming months, including How the World Changed For Millenials.
About Forbes Media
Forbes Media, publisher of Forbes magazine and forbes.com, is an authoritative source of news and information on business, investing, technology, entrepreneurship, leadership and affluent lifestyles. Forbes.com, a leading business website, currently reaches 28 million unique monthly visitors, according to January 2014 comScore worldwide. Forbes magazine, Forbes Asia and Forbes Europe attract a global audience of more than 5 million readers. The Forbes magazine iPad app merges the power of print storytelling with social sharing and the web. The Company also publishes ForbesLife magazine and has 34 licensed local editions around the world.
Contact: Wendy Furrer Egan, [email protected], 212.366.8848
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088ff54a9520af66e715091dbf47ad79
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https://www.forbes.com/sites/forbespr/2014/07/09/forbes-and-svg-partners-will-host-forbes-reinventing-america-the-agtech-summit-july-2015-in-salinas-valley/
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Forbes And SVG Partners Will Host "Forbes Reinventing America: The AgTech Summit," July 2015, In Salinas Valley
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Forbes And SVG Partners Will Host "Forbes Reinventing America: The AgTech Summit," July 2015, In Salinas Valley
SALINAS, Calif. (July 9, 2014) – Forbes, in partnership with SVG Partners and The Steinbeck Innovation Cluster, announced today that it will host the “Forbes Reinventing America: The AgTech Summit” in Salinas Valley, California, in July 2015. This invitation-only event is expected to bring together several hundred of the smartest minds in Silicon Valley and global agriculture in the Salinas Valley to tackle some of the world's most critical challenges. From biotech and precision farming to big data's role in feeding a planet of eight billion people, “Forbes Reinventing America: The AgTech Summit” will explore topics at the core of this vital trend, and promises to be the definitive gathering for leaders at the intersection of technology and agriculture.
"I'm thrilled to welcome the ‘Forbes Reinventing America: The AgTech Summit’ and its attendees, who come from some of the world's largest agriculture and tech companies,” said Joe Gunter, Mayor of Salinas. “This is a great win for the Steinbeck innovation cluster, for the ag industry and for the Salinas Valley, the emerging AgTech capital of the nation.”
For the past three years, Forbes magazine’s Reinventing America series has been covering the innovation and disruption taking place across America's industrial heartland. Following the success of the inaugural “Forbes Reinventing America Summit” in Chicago, which took place March 26-28, 2014, the AgTech Summit will form part of a series of “Forbes Reinventing America Summits” taking place in 2015.
“By leveraging the power of the Forbes brand to convene influential thought leaders, we’re excited to expand the ‘Forbes Reinventing America Summit’ series with the AgTech Summit next year,” said Mike Federle, Forbes Media Chief Operating Officer. “The goal of the AgTech Summit is to find innovative solutions to some of the world’s most critical farming challenges, and there’s no better place for this event than in the Salinas Valley, where tech entrepreneurs from Silicon Valley and experts from the global hub of agriculture intersect.”
"We are delighted to partner with Forbes to create a global agriculture and technology summit that’s focused on twenty-first-century challenges and opportunities related to food, water, energy and innovation in sustainability,” said John Hartnett, CEO of SVG Partners.
"This summit is a fantastic opportunity for the AgTech community to discuss real solutions in accelerating new technologies and capabilities in farming,” said Bruce Taylor, Chairman and CEO of Taylor Farms.
“Forbes Reinventing America: The AgTech Summit” will feature award winners from the Thrive Accelerator program formed by SVG Partners. Launching today, Thrive Accelerator is a highly selective, mentorship and investment program for technology-enabled startups in the Precision Agriculture space. Ten startup companies will be selected to receive the “Thrive AgTech” disrupt award and will gain direct access to the top fresh agriculture companies in the Salinas Valley to help deploy their innovative new technologies. To apply for the Thrive Accelerator award, technology-enabled startups in the Precision Agriculture space should visit: www.thriveaccelerator.com.
About the Forbes Reinventing America Summit Series
For the past three years, Forbes magazine’s Reinventing America series has been covering the innovation and disruption taking place in diverse industries across America’s industrial heartland, from logistics and transportation to energy and manufacturing. Following the success of the inaugural “Forbes Reinventing America Summit,” which took place in Chicago in March of 2014, Forbes is creating a series of Summits that are bringing the “Reinventing America” conversation to life around key verticals, such as AgTech, Energy, Innovation, Manufacturing and Workforce.
About Forbes Media
Forbes Media, publisher of Forbes magazine and forbes.com, is an authoritative source of news and information on business, investing, technology, entrepreneurship, leadership and affluent lifestyles. Forbes.com, a leading business website, currently reaches 24 million unique monthly visitors, according to May 2014 comScore worldwide. Forbes magazine, Forbes Asia, Forbes Europe and the 36 local language editions published by the company’s licensed partners attract a global audience of more than 7 million readers. The Forbes magazine iPad app, which was launched in 2013, merges the power of print storytelling with social sharing and the web. The company also publishes ForbesLife magazine, a luxury lifestyle publication, and plans to launch ForbesLife.com in September 2014.
About Silicon Valley Global Partners
Silicon Valley Global Partners (SVG Partners) is a management consulting firm founded by experienced technology executives that drive competitive advantage across organizations, from strategy to implemenation.
About The Steinbeck Innovation Foundation
The Steinbeck Innovation Foundation is building a new development model, seeded by city government and led by private industry. The Steinbeck Innovation Foundation’s model is composed of four pillars of development support:
Education (including training and advanced research) Startup acceleration Investment Corporate strategic engagement
Salinas’ industrial cluster – dubbed the Steinbeck innovation cluster – leverages an innovative network of civic, academic, technological, corporate, and philanthropic partners ot help younger generations become entrepreneurs, drive innovation in fields and factories, and bring high tech to industrial zones.
About Thrive Program
Thrive Accelerator, launched by SVG Partners in July 2014, is a highly selective mentorship and investment program for technology-enabled startups in the Precision Agriculture space. Ten startup companies are being selected to gather and connect in the Salinas area for mentorship, collaboration and direct access to the top fresh agriculture companies in the world. This program is designed to help today’s top innovators turn their dreams of revolutionizing agriculture into reality. Through Thrive Accelerator, select companies will gain access to the best expertise and resources of top agriculture and tech companies to help deploy their innovative new technologies.
About Salinas Valley
Just one hour south of Silicon Valley, Salinas’ $8 billion agricultural industry is ground zero for fresh food production,and the logical epicenter of the “smart farming” movement that brings together the best in farming, technology, water and energy innovation.
Press Contacts
Mia Carbonell, Forbes Media, [email protected], 212-620-2288
Laura Daunis, Forbes Media, [email protected], 212-367-4874
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7fcb3923e1939f7fc1408297d35bb9ba
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https://www.forbes.com/sites/forbespr/2014/09/02/wealth-of-philippines-50-richest-on-forbes-list-rises-to-us74-billion/
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Wealth Of Philippines' 50 Richest On Forbes List Rises To US$74 Billion
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Wealth Of Philippines' 50 Richest On Forbes List Rises To US$74 Billion
Henry Sy remains country’s richest person
SINGAPORE (August 28, 2014) – Fortunes expand for some of the Philippines richest people, according to the latest Forbes Philippines rich list. The nation’s 50 wealthiest are worth a combined US$74 billion, up 12% from $65.8 billion in 2013. The complete list is available here as well as in the latest issue of Forbes Asia, available on newsstands now.
Henry Sy tops the list for the seventh consecutive year with a net wealth of $12.7 billion, up $700 million from last year, largely thanks to the rising share prices of his SM Prime Holdings, the Philippines’ largest mall operator, and Banco de Oro, one of the country’s largest banks. Lucio Tan remains in the No. 2 spot with a net worth of $6.1 billion. Port and casino tycoon, Enrique Razon Jr. also saw his wealth rise to $5.2 billion, up from $4.5 billion a year ago, ranking him No. 3 on the list. The casino chief is placing a big bet on expanding his Solaire Resort & Casino and is eying future expansion plans in Macau, Japan and Latin America.
This year’s list reflects two driving forces of the Philippines’ economy: construction and consumption. Riding high on the country’s prosperity is Manuel Villar of Starmalls, operator of huge shopping centers. His net worth reached $1.46 billion, up $410 million from a year ago, to No. 14. Real estate developer, David Consunji, the founder of DMCI Holdings, also added more than $1 billion to his net worth to $3.9 billion (No.6). Strength in DMCI stock helped to boost the construction tycoon’s fortunes.
There are four newcomers on this year’s list: Ricardo S. Po and family of canned food company, Century Pacific Group (No. 21, $770 million); Dean Lao, co-founder of D&L Industries (No. 26, $625 million); Raul and Jose Concepcion and family, twin brothers who took over their father’s manufacturing and food businesses, Concepcion Industrial and RFM Corporation (No. 34, $320 million); and pawnshop titan P.J. Lhuillier of Cebuana Lhuillier, (No. 49, $180 million).
The minimum amount required to make the list was $170 million, up from $105 million last year.
The top 10 richest in the Philippines are:
1) Henry Sy; US$12.7 billion
2) Lucio Tan; $6.1 billion
3) Enrique Razon Jr.; $5.2 billion
4) Andrew Tan; $5.1 billion
5) John Gokongwei Jr.; $4.9 billion
6) David Consunji; $3.9 billion
7) George Ty; $3.7 billion
8) Aboitiz Family; $3.6 billion
9) Jaime Zobel de Ayala & family; $3.4 billion
10) Tony Tan Caktiong; $2 billion
The list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts and other sources. Unlike the Forbes billionaire rankings, this list includes family fortunes, including those shared among extended families such as that of John Gokongwei Jr. and his relatives. Net worths are based on stock prices and exchange rates as of the close of markets on August 18. Private companies were valued based on similar companies that are publicly traded.
Forbes Media:
Forbes Media, publisher of Forbes, Forbes Asia, Forbes Europe and ForbesLife magazines as well as Forbes.com, is an authoritative source of news and information on business, investing, technology, entrepreneurship, leadership and affluent lifestyles. The company has built a diversified portfolio of assets as part of its ongoing transformation into a global media, branding and technology company. The Forbes brand today reaches approximately 75 million people worldwide with its business message through its magazines and 36 licensed local editions around the world, Forbes.com, TV, conferences, research, social and mobile each month. The Forbes magazine iPad app merges the power of print storytelling with social sharing and the web. Forbes Media's brand extensions include conferences, real estate, education, financial services, and technology license agreements. The company plans to launch ForbesLife.com in September 2014.
For media queries, please contact:
Catherine Ong Associates Pte Ltd
Catherine Ong Ronald Chong
tel: +65 6327 6088 tel: +65 6222 1680
cell: +65 9697 0007 cell: +65 9172 1180
[email protected] [email protected]
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https://www.forbes.com/sites/forbespr/2014/12/04/hartono-brothers-top-forbes-indonesia-rich-list/
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Hartono Brothers Top Forbes Indonesia Rich List
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Hartono Brothers Top Forbes Indonesia Rich List
JAKARTA AND SINGAPORE (December 4, 2014) – Banking tycoons Budi and Michael Hartono are the richest Indonesians with a net worth of US$16.5 billion according to the latest Forbes Indonesia Rich List. The brothers have topped the list for the sixth year in a row. The complete list is available here as well as in the latest issue of Forbes Asia and Forbes Indonesia.
The Hartono brothers added more than US$1 billion to their fortune thanks to the rising stock price of their most valuable holding, Bank Central Asia, Indonesia’s largest non-state-owned bank by assets. Shares are up 50% in the past year.
Tobacco tycoon Susilo Wonowidjojo climbed to the No. 2 spot from No. 4 last year, his net worth is $2.7 billion higher at $8 billion this year. The stock price of his company Gudang Garam has soared by almost 60% since the last list, compared to a 6% increase for the Jakarta Composite Index. While clove output dropped, investors in Gudang Garam have refocused on the bright prospects for machine-rolled cigarettes in Indonesia, including a better crop.
Conglomerate chief Anthoni Salim who runs Salim Group, remains at No. 3. His net worth is down $400 million to $5.9 billion. Salim Group, which operates food, telecom, retail, property and banking units, is well-known for Indofood, the world’s largest manufacturer of instant noodles.
Overall, Indonesia’s 50 richest are collectively worth $102 billion, up from $95 billion last year. The minimum net worth needed to make the list this year is $500 million, up from $390 million.
Justin Doebele, Chief Editorial Advisor of Forbes Indonesia, says: "This year's rich list demonstrates the enduring power of the Indonesian economy. Under a dynamic new president, Indonesia promises to provide opportunity for more entrepreneurs to create wealth for themselves and the country. Exemplifying this trend, we have several new entrants added to the list this year."
Several fortunes appeared on the radar for the first time. The most well-known among them: Purnomo Prawiro. Anyone who has hailed a cab on a busy Jakarta street has probably ridden in one of his Blue Bird taxis. Blue Bird’s long-awaited IPO finally occurred in November, and Prawiro lands on the list at No. 25 with a wealth of $1.3 billion.
The three other newcomers include Husodo Angkosubroto of conglomerate Gunung Sewu Group (No. 23, $1.45 billion), timber baron Abdul Rasyid (No. 41, $805 million) and herbal medicine entrepreneur, Irwan Hidayat (No. 44, $660 million).
However, some tycoons didn’t fare as well this year. In fact, the majority of those returning to the list saw their wealth fall or stay flat, largely due to a decreasing rupiah and bad times for the coal and palm oil industries as commodities prices are off their highs. Four tycoons from last year’s list didn’t make the cut this year. The most notable absentee is Kiki Barki, whose net worth fell following a massive drop in the stock price of his coal miner, Harum Energy.
The top 10 richest in Indonesia are:
Budi & Michael Hartono; US$16.5 billion Susilo Wonowidjojo; $8 billion Anthoni Salim; $5.9 billion Eka Tjipta Widjaja; $5.8 billion Sri Prakash Lohia; $4.4 billion Chairul Tanjung; $4.3 billion Boenjamin Setiawan; $3.5 billion Mochtar Riady; $2.7 billion Peter Sondakh; $2.3 billion Sukanto Tanoto; $2.11 billion
The list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts and other sources. The ranking lists family fortunes, including those shared among extended families such as that of Susilo Wonowidjojo. Public fortunes were calculated based on stock prices and exchange rates as of Nov. 14. Private companies were valued based on similar companies that are publicly traded.For more information, visit www.forbes.com/indonesia.
Forbes Media:
Forbes Media is a global media, branding and technology company, with a focus on news and information about business, investing, technology, entrepreneurship, leadership and affluent lifestyles. The company publishes Forbes, Forbes Asia, Forbes Europe and ForbesLife magazines as well as Forbes.com and ForbesLife.com. The Forbes brand today reaches more than 75 million people worldwide with its business message each month through its magazines and 36 licensed local editions around the globe, Forbes.com, TV, conferences, research, social and mobile platforms. The Forbes magazine iPad app merges print storytelling with social sharing and the web. Forbes Media’s brand extensions include conferences, real estate, education, financial services, and technology license agreements.
Forbes Indonesia:
Forbes Indonesia is the Indonesian edition of Forbes, published under license by the media company PT Wahana Mediatama. Forbes Indonesia is published monthly and is in English. It features more than two-thirds original Indonesian-focused editorial content, written by a team of top local business journalists. The original copy is complemented by Forbes articles from the US and Asian editions of the magazine. Content includes profiles of Indonesia’s top tycoons to rising entrepreneurs, philanthropy, lifestyle and other topics of interest to a high-level business readership.
Forbes Indonesia editors available for interviews:
Justin Doebele (English only) Ardian Wibisono (Indonesian and English speaker)
Chief Editorial Advisor Senior Editor
tel: +62 21 522 6828 tel: +62 21 522 6828
cell: +62 813 9907 0806 cell: +62 815 955 3669
email: [email protected] email: [email protected]
For media queries, please contact:
Catherine Ong Associates Pte Ltd
Ronald Chong Catherine Ong
tel: +65 6222 1680 tel: +65 6327 6088
cell: +65 9172 1180 cell: +65 9697 0007
[email protected] [email protected]
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https://www.forbes.com/sites/forbespr/2015/02/03/gina-rinehart-retains-top-spot-on-forbes-australia-rich-list/
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Gina Rinehart Retains Top Spot On Forbes Australia Rich List
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Gina Rinehart Retains Top Spot On Forbes Australia Rich List
Asian interest in Australian property boost fortunes of real estate tycoons
SINGAPORE (January 29, 2015) – Mining tycoon Gina Rinehart retains the top spot on the latest Forbes Australia Rich List. The richest person down under has a net worth of $11.7 billion. The complete list is available here as well as the latest issue of Forbes Asia, available on newsstands now.
The fortunes of Rinehart and other miners such as Andrew Forrest and Clive Palmer were affected by a steep fall in iron ore prices last year, as demand for steel worldwide, especially from China, was weaker due to sluggish growth. Rinehart’s net worth was lower by $6 billion this year compared to last year. Andrew Forrest who ranks No. 10 on the list, saw his net worth drop to $2.1 billion from $5 billion a year ago. Clive Palmer, whose wealth was estimated at $550 million last year, did not make the list.
Overall, the drop in iron ore prices and the Australian dollar’s 6.5% depreciation against the U.S. dollar were among the factors that impacted many of the richest. The collective net worth of Australia’s 50 richest is $89.3 billion, down from $101.15 billion last year.
Meanwhile, the soaring Asian interest in Australian real estate has boosted the wealth of property tycoons, especially Sydney developer Harry Triguboff, who moved up 5 spots to rank No. 2 on the list. His fortune swelled by US$1.3 billion to US$5.6 billion. Known also as “High-Rise Harry” for putting up over 60,000 apartments over the course of his career, he is the biggest gainer on this year’s list. Meriton, the company which he founded 50 years ago is Australia’s biggest apartment builder.
Shopping mall tycoon Frank Lowy of Westfield Group took the No. 3 spot with a net worth of $5 billion, up from $4.6 billion last year. His company had completed its third major restructure in a decade, splitting local and international mall businesses. His sons, Peter and Steven run Westfield Corp., which owns 44 malls in US and Europe. The other unit, Scentre, boasts 47 malls in Australia and New Zealand.
Casino mogul James Packer is ranked No. 4 on the list with a fortune of $4.7 billion. His wealth fell by almost $2 billion as falling casino revenue in Macau impacted his half-owned Crown Resorts.
Ivan Glasenberg, who holds the biggest private stake in commodity trader, Glencore, took the No. 5 spot on the list. His fortune is down by almost $2 billion due to skidding commodity prices to $4.4 billion from $6.3 billion the year before.
John Gandel of the giant Chadstone shopping mall saw his net worth rise to $3.6 billion at No. 6, up from $3.2 billion the year before. He is betting big on Australia’s retail sector and plans to expand the mall for the 40th time since buying a half stake, 32 years ago.
Anthony Pratt of Visy, the Melbourne packaging-and-recycling company, is ranked No. 7 this year with a net worth of $3.5 billion. His sisters Fiona Geminder (No. 12, $2.05 billion) and Heloise Waislitz (No.13, $2 billion) debut on the list. This year, the Pratt family fortune is split among the 3 siblings, instead of being listed entirely under Anthony Pratt, as it was last year when his fortune was estimated at $7 billion.
Graham Turner, cofounder of Flight Centre Travel Group which owns Australia’s largest chain of travel agencies, is the subject of this issue’s cover story, with a net worth of $575 million.
The minimum net worth to make the list this year remains the same as last year at $550 million.
The top 10 richest in Australia are:
1) Gina Rinehart; US$11.7 billion
2) Harry Triguboff; $5.6 billion
3) Frank Lowy; $5 billion
4) James Packer; $4.7 billion
5) Ivan Glasenberg; $4.4 billion
6) John Gandel; $3.6 billion
7) Anthony Pratt; $3.5 billion
8) Kerr Neilson; $3 billion
9) Lindsay Fox; $2.9 billion
10) Andrew Forrest; $2.1 billion
This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts, private databases and other sources. Net worth figures are based on stock prices and exchange rates as of the close of markets on January 20. Private companies are valued by using financial ratios and other comparisons with similar companies that are publicly traded. Fortunes are often shared among family members and can’t be attributed entirely to the person listed. Large extended families whose wealth is dispersed among many members are not included on the list.
For more information, visit www.forbes.com/australia.
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https://www.reuters.com/article/us-fgic-bankruptcy/fgic-corp-files-for-chapter-11-protection-idUSTRE6733NZ20100804
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FGIC Corp files for Chapter 11 protection
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FGIC Corp files for Chapter 11 protection
By Reuters Staff3 Min Read
NEW YORK (Reuters) - FGIC Corp filed for bankruptcy protection late on Tuesday, saying it was not paid dividends by its troubled bond insurance unit Financial Guaranty Insurance Co FGICL.PK since the onset of the financial crisis more than two years ago, according to court documents.
The privately held insurance holding company relies on dividend payments by its FGIC Co unit to sustain operations. It has not received dividends since January 2008, according to the filings submitted to the Southern District of New York bankruptcy court.
“The deterioration in the U.S. housing and mortgage markets that began in 2007 and continues through today has had a significant adverse impact on the financial condition of the FGIC,” the company said in the filing.
The parent company intends to restructure more than $300 million in debt while under bankruptcy protection, and expects to “progress quickly through the Chapter 11 case,” according to a statement.
None of the company’s subsidiaries or affiliates, including its wholly owned subsidiary Financial Guaranty Insurance Co (FGIC), are part of the Chapter 11 proceedings.
FGIC listed estimated unsecured debt of $391.5 million and estimated assets in the range of $10 million to $50 million.
A large number of the FGIC-insured mortgage securities have soured, leading to losses because of sustained increases in the number of U.S. mortgage defaults and foreclosures, the company said.
“As a result, during 2007, 2008 and 2009, FGIC paid claims on its insurance policies far in excess of historical levels,” the company said.
The continuing losses stemming from FGIC-insured mortgage securities resulted in FGIC’s surplus to decrease to about negative $1.640 billion.
FGIC Corp said as a result of FGIC’s inability to remit dividends to it since January 2008, it was unable to satisfy its obligations under the revolving credit agreement.
Law firm Kirkland & Ellis has been hired to assist in restructuring efforts.
The case is IN re: FGIC Corp, Case No. 10-14215, U.S. Bankruptcy Court, Southern District of New York.
Reporting by Sakthi Prasad in Bangalore and Chelsea Emery in New York; Editing by Valerie Lee and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-fiat-chrysler-accident/strike-hits-fiat-chrysler-plant-in-italy-after-death-of-worker-idUSKBN1WG3L8
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Strike hits Fiat Chrysler plant in Italy after death of worker
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Strike hits Fiat Chrysler plant in Italy after death of worker
By Reuters Staff2 Min Read
FILE PHOTO: The logo of Fiat carmaker is seen in Nice, France, June 3, 2019. REUTERS/Eric Gaillard/File Photo
MILAN (Reuters) - A Fiat Chrysler FCHA.MI worker died overnight in an accident at the group's factory in Cassino, central Italy, prompting unions to launch a strike at the plant to demand tighter safety measures, officials said on Tuesday.
FCA confirmed the death of the 40 year-old in an accident that occurred as he was moving a mould in the cold press area of the plant as part of standard operating procedure.
A spokesman for the auto maker said FCA expressed its “profound condolences” to the family for the tragic death of Fabrizio Greco.
“All initiatives in support of his family were activated immediately,” he said. “The Company is actively collaborating with the competent authorities that are looking into causes of this tragic and exceptional accident”.
Metal engineering unions, FIOM, FIM, UILM and AQCFR jointly called for an eight-hour strike on Tuesday in Cassino, where the group produces Alfa Romeo Giulia sedans and Alfa Romeo Stelvio SUV models.
Rocco Palombella, head of the UILM union, said accidents of such gravity had not happened for several years at Fiat Chrysler plants.
“We’re waiting to know from prosecutors how a fatal accident could occur, despite all the safety measures that are normally taken in the plant,” he said.
FIOM heads Francesca Re David and Michele Palma urged the government to strengthen procedures to prevent accidents and oversee job safety, claiming that both were increasingly being affected by understaffing.
Reporting by Giulio Piovaccari; Editing by Mark Potter and Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-fiat-chrysler-emissions/u-s-government-sues-fiat-chrysler-over-excess-emissions-idUSKBN18J28F
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U.S. government sues Fiat Chrysler over excess emissions
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U.S. government sues Fiat Chrysler over excess emissions
By David Shepardson5 Min Read
WASHINGTON (Reuters) - The U.S. government filed a civil lawsuit on Tuesday accusing Fiat Chrysler Automobiles NV FCHA.MI of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014.
The U.S. Justice Department lawsuit, filed in U.S. District court in Detroit, is a procedural step that may ramp up pressure on Fiat Chrysler and comes amid growing scrutiny of diesels by regulators around the world.
The lawsuit could ultimately help lead to a settlement, as in an earlier probe of Volkswagen AG VOWG_p.DE that will cost VW up to $25 billion, but which affected a much larger number of vehicles.
VW admitted to intentionally cheating while Fiat Chrysler denies wrongdoing.
It said on Tuesday it was disappointed the Justice Department filed suit and would vigorously defend itself against claims “it engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests.”
U.S.-listed Fiat Chrysler shares FCAU.N fell 4.1 percent to close at $10.32 in heavy trading on Tuesday. Shares fell sharply after Reuters first reported the government's plan to file suit.
The lawsuit also names Fiat Chrysler’s unit VM Motori SpA, which designed the engine in question. Reuters reported last week the Justice Department and EPA have obtained internal emails and other documents written in Italian that look at engine development and emissions issues that raise significant questions. The investigation has scrutinized VM Motori.
The suit said VM employees from Italy worked at Fiat Chrysler’s Michigan headquarters on engine calibration
and air emission issues.
People talk as they stand next to a logo of Fiat Chrysler Automobiles (FCA) in Turin March 31, 2014. REUTERS/Giorgio Perottino
FCA acquired a 50 percent stake in VM Motori in 2010 and the remainder in October 2013.
The lawsuit asserts the Italian-American automaker placed undeclared “defeat devices,” or auxiliary emissions controls, in 2014-2016 Fiat Chrysler diesel vehicles that led to “substantially” higher than allowable levels of nitrogen oxide, or NOx pollution, which is linked to smog formation and respiratory problems.
The lawsuit asks a court to require Fiat Chrysler to fix the vehicles and bar it from selling vehicles with excess emissions as well as unspecified civil penalties. EPA said in January the maximum fine is about $4.6 billion.
Fiat Chrysler faces a separate criminal investigation on the same emissions issue by the Justice Department and probes by the U.S. Securities and Exchange Commission and many U.S. states.
In January, EPA and California accused Fiat Chrysler of illegally using undisclosed software to allow excess diesel emissions in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks.
The company plans to update software which it expects will resolve the concerns of U.S. regulators about excess emissions in those vehicles.
The January notice was the result of regulators’ investigation of rival Volkswagen, which prompted the government to review emissions from all other passenger diesel vehicles.
Volkswagen admitted in September 2015 to installing secret software allowing its cars to emit up to 40 times legal pollution levels.
In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting U.S. vehicles.
Fiat Chrysler has applied for certification to sell 2017 diesel models from U.S. and California regulators and said it was in talks to win approval for a software update to address regulators’ concerns about emissions in vehicles on the road.
U.S. Judge Edward Chen in San Francisco set a Wednesday hearing on a series of lawsuits filed by owners of vehicles and some dealers against Fiat Chrysler. The Justice Department has asked its suit be transferred to the same court.
A “defeat device” is any motor vehicle hardware, software, or design that interferes with or disables emissions controls under real-world driving conditions, even if the vehicle passes formal emissions testing.
Automakers around the world are facing diesel scrutiny.
German prosecutors searched Daimler AG DAIGn.DE sites on Tuesday as part of a diesel fraud probe.
Earlier this month, Daimler dropped plans to seek U.S. approval to sell 2017 Mercedes-Benz diesel models.
Environmentalists say the case shows regulators must hold automakers accountable. “Fiat Chrysler joins the long list of automakers who have put our clean air and health of our families in the backseat by cheating on emissions tests,” Sierra Club Executive Director Michael Brune said in a statement.
Editing by Nick Zieminski and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.
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dd632bfe69b0fcacc0050281b49e64ee
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https://www.reuters.com/article/us-fiat-chrysler-fiat-500-bev/fiat-bets-on-electric-500-as-it-moves-on-from-renault-idUSKCN1U61AV
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FCA plans electric Fiat 500 for 2020 as moves on from Renault
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FCA plans electric Fiat 500 for 2020 as moves on from Renault
By Giulio Piovaccari3 Min Read
TURIN, Italy (Reuters) - Fiat Chrysler (FCA) plans to spend 700 million euros ($788 million) to take the Fiat 500 electric as the carmaker moves on from its failed $35 billion bid to merge with France's Renault RENA.PA, a pioneer in electric vehicles.
Slideshow ( 16 images )
FCA FCHA.MI chief operating officer for Europe, Middle East and Africa, Pietro Gorlier, announced the Italian-American company's biggest single bet on an electric vehicle at its Mirafiori plant in Turin, northern Italy on Thursday.
FCA’s investment is part of a plan announced last year to spend 5 billion euros in Italy up to 2021.
Gorlier told reporters that FCA had started building the new production line at Mirafiori to turn out 80,000 of the new 500 BEV, its first battery electric vehicle to be marketed in Europe.
The original 500 model, launched by Fiat in the late 1950s and known affectionately as the “Cinquecento”, quickly become a symbol of Italian urban design.
Mirafiori’s 3,500 workers are hoping the new electric mini-car will revive a plant which LMC Automotive estimates is running below 10% of its capacity this year.
Workers in Fiat’s home town are also betting on the hybrid version of Maserati’s Levante SUV, on which production is expected to start next year, to help boost their working hours.
An early version of the electric 500 has been produced in the United States to comply with local authority rules on zero-emission cars. But former CEO Sergio Marchionne asked customers not to buy the car in 2014 as FCA was losing money on it, and said he hoped to sell the smallest number possible.
Production of the newly-engineered 500 BEV will start in the second quarter of 2020, with room to expand later, Gorlier said.
The 500 BEV will compete in the upmarket small car segment with BMW's BMWG.DE Mini. The German company said this week the new electric version of its compact car would start to reach customers from spring next year.
In abandoning its merger offer for Renault, FCA blamed French politics for scuttling what would have been a landmark deal to create the world’s third-biggest automaker.
($1 = 0.8878 euros)
Editing by Mark Bendeich; Mark Potter and Alexander SmithOur Standards: The Thomson Reuters Trust Principles.
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5f37f347453ddae38dcf4983b2cbfaa6
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https://www.reuters.com/article/us-fiat-chrysler-loans-idUSKCN0WH2HS
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Fiat Chrysler gains access to cash of its U.S. subsidiary
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Fiat Chrysler gains access to cash of its U.S. subsidiary
By Reuters Staff2 Min Read
A new Fiat Chrysler Automobiles sign is pictured after being unveiled at Chrysler Group World Headquarters in Auburn Hills, Michigan in this May 6, 2014 file photo. REUTERS/Rebecca Cook
DETROIT (Reuters) - Fiat Chrysler Automobiles FCHA.MIFCAU.N announced on Tuesday that it has eliminated covenants linked to term loans of its U.S. unit, FCA US LLC, thus gaining full access to the subsidiary's cash.
After completing a buyout of its U.S. unit in early 2014 and creating Fiat Chrysler Automobiles, the heavily indebted carmaker has been seeking to restructure Chrysler’s finances to be able to fully access the division’s cash, that until now was limited by a cap on dividends and debt covenants.
Fiat Chrysler Automobiles on Tuesday said its FCA US LLC entered into amendments to its term loans maturing in 2017 and in 2018.
“The amendments represent the final step toward allowing the free flow of capital among members of the FCA Group, as previously announced, and enabling access to the second 2.5 billion euros ($2.8 billion) tranche of Fiat Chrysler Automobiles’ 5 billion euros syndicated revolving credit facility,” the company said in a press release.
It also said that FCA US LLC made a $2 billion prepayment applied to the term loans, leaving an aggregate principal balance of the term loans of about $2.8 billion.
Fiat Chrysler can now use the cash to help fund a product overhaul of key brands Jeep, Alfa Romeo and Maserati by 2018, at which time the company also says it will have eliminated its net debt.
Reporting by Bernie Woodall; Editing by Diane CraftOur Standards: The Thomson Reuters Trust Principles.
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b5e248e51b2723c98aed5a79558734bf
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https://www.reuters.com/article/us-fiat-chrysler-m-a-germany-opel-idUSKBN1XA165
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German union seeks to preserve Opel independence as Peugeot pursues FCA
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German union seeks to preserve Opel independence as Peugeot pursues FCA
By Reuters Staff1 Min Read
BERLIN (Reuters) - IG Metall, Germany's largest union by members, said on Thursday it would seek to preserve the autonomy of PSA's PEUP.PA German unit Opel after PSA and Fiat Chrysler FCHA.MI announced plans to create the world's fourth-largest automaker.
IG Metall official Joerg Koehlinger in an emailed statement pointed to an agreement that bars forced layoffs at Opel until mid-2023. “This gives Opel employees security and protection,” he said.
Reporting by Thomas Seythal; editing by Edward TaylorOur Standards: The Thomson Reuters Trust Principles.
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28387833f725cfb70aa68e5ca48e363f
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https://www.reuters.com/article/us-fiat-chrysler-m-a-psa-factbox/factbox-fiat-chrysler-peugeot-tie-up-how-does-it-work-idUSKBN1XI1GB
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Factbox: Fiat Chrysler, Peugeot tie-up - how does it work?
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Factbox: Fiat Chrysler, Peugeot tie-up - how does it work?
By Reuters Staff3 Min Read
MILAN (Reuters) - Fiat Chrysler FCHA.MIFCAU.N and Peugeot owner PSA PEUP.PA would retain all of their car brands if their planned $50 billion merger goes ahead, the would-be chief executive of the combined group said on Friday.
The logos of car manufacturers Fiat and Peugeot are seen in front of dealerships of the companies in Saint-Nazaire, France, November 8, 2019. REUTERS/Stephane Mahe
Last month the two companies announced plans to join forces to create the world’s fourth-largest automaker.
The following are some of the key elements of the deal:
- Fiat Chrysler Automobiles (FCA) and PSA aim to reach a binding agreement to create a $50 billion company in the coming weeks.
- The combined automaker would have annual sales of 8.7 million vehicles, total revenues of nearly 170 billion euros ($190 billion) and recurring operating profit of more than 11 billion euros, based on aggregated 2018 results.
- The new group would be domiciled in the Netherlands, with listings in Paris, Milan and New York.
- PSA Chief Executive Carlos Tavares would be the group’s CEO. FCA Chairman John Elkann would become chairman.
- The merged group would have 11 board members, six from Peugeot including Chief Executive Carlos Tavares, and five from FCA including Chairman John Elkann.
- The merger, once completed, is expected to generate 3.7 billion euros in annual synergies. The two groups say no plants would be closed.
- Prior to completion of the deal, FCA would pay its shareholders a 5.5 billion euro special dividend. It would also hand investors its shares in robot-making unit Comau, which will be spun-off.
- Also prior to completion, Peugeot would distribute its 46% stake in auto-parts maker Faurecia EPED.PA to its shareholders.
- Under the deal, major shareholders Exor EXOR.MI, French state bank Bpifrance Participations and the Peugeot family would be subject to a three-year lock-up period. In that time, the Peugeot family would be allowed to increase its shareholding by up to 2.5% only by acquiring shares from Bpifrance Participations and China's Dongfeng Motor Group (DFG).
- A seven-year standstill period following completion of the merger - when extraordinary operations affecting governance cannot be carried out - would apply to shareholders Exor, Bpifrance Participations, DFG and the Peugeot family.
- According to sources, FCA is being advised by Goldman Sachs and its independent board members by D’Angelin. PSA is being advised by Mediobanca’s Messier Maris & Associes unit and Morgan Stanley, with Perella working for its independent board member. Lazard is advising Exor.
- Exor, the holding company of the Agnelli family which controls FCA with a 29.2% stake, will become the new automaker’s single largest investor, with a 14.5% stake.
Reporting by Giulio Piovaccari and Stephen Jewkes; Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.
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d86873c0ce10c49b2bc017a861e08284
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https://www.reuters.com/article/us-fiat-chrysler-m-a-psa-idUSKCN24G2W7
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Fiat Chrysler, PSA to emerge as Stellantis following merger next year
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Fiat Chrysler, PSA to emerge as Stellantis following merger next year
By Reuters Staff1 Min Read
(Reuters) - The combined company resulting from the merger of Italian-American carmaker Fiat Chrysler Automobiles FCHA.MI and France's Peugeot owner PSA PEUP.PA will be called Stellantis, the automakers said on Wednesday.
Stellantis is derived from the Latin verb “stello”, which means “to brighten with stars,” the companies said.
The names and the logos of the group’s constituent brands will remain unchanged after the deal’s projected close in the first quarter of 2021.
In December, Fiat Chrysler and PSA agreed to combine in a $50 billion all-share deal to create the world’s fourth-biggest carmaker, and unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS.
The process of identifying the new name for the merged company was supported by Publicis Group PUBP.PA, the companies said.
Reporting by Shreyasee Raj in Bengaluru; Editing by Aditya SoniOur Standards: The Thomson Reuters Trust Principles.
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7ed401f96bc5e0497470e2bafd92b810
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https://www.reuters.com/article/us-fiat-chrysler-m-a-psa-savings/merged-psa-and-fiat-would-retain-all-brands-tavares-idUSKBN1XI0S1
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Merged PSA and Fiat would retain all brands: Tavares
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Merged PSA and Fiat would retain all brands: Tavares
By Elisa Anzolin, Gilles Guillaume4 Min Read
PARIS/TURIN, Italy (Reuters) - Peugeot maker PSA Group PEUP.PA and Fiat Chrysler FCHA.MI would retain all of their car brands if their planned $50 billion merger goes ahead, the would-be chief executive of the combined group said on Friday.
FILE PHOTO: CEO of the PSA Group, Carlos Tavares attends the 89th Geneva International Motor Show in Geneva, Switzerland March 5, 2019. REUTERS/Denis Balibouse
PSA CEO Carlos Tavares, seen as the architect of PSA’s turnaround and in line to take the operational helm in the Fiat tie-up, said in a TV interview that the companies complemented each other well geographically and in terms of technology and brands.
FCA derives 66% of its revenue from North America compared with only 5.7% for PSA, Refinitiv Eikon data shows. Europe remains the main revenue driver for PSA.
“There’s no doubt it’s a very good deal for both parties. It’s a win-win,” Tavares told France’s BFM Business, in his first interview since the French and Italian companies announced plans to create the world’s fourth-largest auto maker last week.
Fiat Chrysler (FCA) Chairman John Elkann, who would chair the combined group, said on Friday at an event in Turin that the 50-50 share merger would help the Italian carmaker “seize great opportunities.”
The deal, which would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markers, is still at an early stage.
PSA and Fiat have said they aim to reach a binding outline in the coming weeks, but still face questions over potential job losses, as well as scrutiny over whether the transaction favors one party more than the other.
Tavares said the brands that would come under the combined group’s umbrella - PSA’s five passenger car labels include Citroen and Vauxhall, while FCA has nine, including Alfa Romeo, Maserati and Jeep - were all likely to survive.
“As of today, I don’t see any need to scrap any of the brands if the deal came to pass. They all have their history and their strengths,” Tavares said.
Related CoverageFactbox: Fiat Chrysler, Peugeot tie-up - how does it work?
Few carmakers have as large a portfolio, with German rival Volkswagen VOWG_p.DE counting 10 passenger brands, if newer Chinese ones such as electric vehicle label Sihao are included.
JOB CUTS?
The merger will also require approval from anti-trust authorities.
Tavares said he did not expect the companies to have to make major concessions to meet competition rules, but added they were ready to do so, without giving details.
One of thorniest aspects of the deal are the potential job losses at stake in a group with a combined workforce of around 400,000, with governments in Rome and Paris as well as unions poring over the implications.
Tavares reaffirmed that the firms could reach billions of euros in annual cost savings without closing factories. But he did not rule out job cuts when pressed, only stating: “That’s the car industry, it’s not about PSA.”
“Margins are continually under pressure and you have to permanently be looking for productivity gains,” he added, pointing to stricter regulations on everything from safety to pollution.
Answering a question on the merger being already a done deal, Elkann said a long time could pass between the announcement of a merger and getting it over the line.
Tavares, meanwhile, said the companies remained prudent, adding he’d seen transactions scuppered when parties got into the details, but that talks toward a binding agreement were evolving favorably.
“Given all the necessary regulatory approvals that need to be granted, such a deal cannot be closed in less than a year,” Tavares added.
FCA abandoned merger talks with PSA's French rival Renault RENA.PA less than five months ago. ($1 = 0.9051 euros)
Reporting by Gilles Guillaume; writing by Matthieu Protard and Sarah White; editing by Jan Harvey and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.
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038b4fcb8cdb427919b2c54e8355096f
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https://www.reuters.com/article/us-fiat-chrysler-m-a-psa/psas-upscale-ds-brand-says-it-has-secure-future-within-merged-group-idINKBN20R2W8?edition-redirect=in
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PSA's upscale DS brand says it has secure future within merged group
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PSA's upscale DS brand says it has secure future within merged group
By Gilles Guillaume2 Min Read
FILE PHOTO: The logos of car manufacturers Fiat and Peugeot are seen in front of dealerships of the companies in Saint-Nazaire, France, November 8, 2019. REUTERS/Stephane Mahe
PARIS (Reuters) - The 2019 sales performance of Peugot SA's PEUP.PA upscale DS brand shows it deserves to have a future within the merged PSA, Fiat Chrysler group, the brand's CEO said.
PSA and Fiat Chrysler struck a $50 billion deal in December to create the world’s No.4 carmaker, to cope better with market turmoil and the cost of making less-polluting vehicles. The deal is expected to be finalised in early 2021.
The combined business will have 14 brands with Peugeot, Citroen, Opel and Fiat among those competing in the mass market segments and notably Alfa Romeo and DS in the premium sectors.
“The future of a brand hinges on its credibility and success. If one looks at what DS did in 2019, obviously the future of DS is not an issue,” DS CEO Beatrice Foucher, who took up the role at the start of the year, told Reuters.
DS focuses on SUVs and a premium sedan and aims to compete with Mercedes and BMW.
While PSA boss Carlos Tavares has said that there were no immediate plans to change anything in the large portfolio of brands within the combined group, analysts wonder if DS, which is newer than Alfa Romeo to premium, will be able to co-exist with the Italian brand.
After five consecutive years of decline, DS eked out a 0.8% gain in sales in 2018, accelerating to 17.5% growth in 2019. However, sales volumes of 62,500 last year were far below their peak in 2012.
Last year, Alfa Romeo had sales volumes of around 85,000 vehicles, according to an industry source.
With its SUV DS7 and DS3 Crossbacks produced in France and its DS9 flagship sedan made in China, DS plays the card of “French-style luxury” to compete with German models that dominate the sector. It relies on Europe for 90% of its sales and will have 450 dealerships by end-2020.
Reporting by Gilles Guillaume, Writing by Dominique Vidalon; Editing by Elaine HardcastleOur Standards: The Thomson Reuters Trust Principles.
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c0d9f6785f3f30d98acc37893ec9ccb6
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https://www.reuters.com/article/us-fiat-chrysler-recall/fiat-chrysler-to-recall-nearly-700000-suvs-for-electrical-fault-risk-idUSKBN1XV120
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Fiat Chrysler to recall nearly 700,000 SUVs for electrical fault risk
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Fiat Chrysler to recall nearly 700,000 SUVs for electrical fault risk
By Reuters Staff2 Min Read
FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo
WASHINGTON (Reuters) - Fiat Chrysler Automobiles NV FCHA.MI said on Thursday it will recall nearly 700,000 sport utility vehicles worldwide because a faulty electrical connection could prevent engine starts or contribute to a stall.
The recall, covering 2011 through 2013 model year Dodge Durango and Jeep Grand Cherokee SUVs, will address silicon deposits on the contact points of fuel pump relays that may interrupt electrical current, Fiat Chrysler said in a statement. It said it is unaware of any injuries or accidents related to the faulty vehicles.
The Italian-American automaker had previously recalled most of the same SUVs in 2014 and 2015 for issues with their fuel pump relays.
The company, which last month announced it planned to merge with Peugeot owner PSA PEUP.PA, said it would notify owners at a later date when they will be able to schedule repairs at dealerships.
The recall includes around 528,500 vehicles in the United States, 34,700 in Canada, 18,100 in Mexico and 116,500 outside North America, it said.
Reporting by David Shepardson; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.
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3b08cb43e25c0c88ad2d5c442ce8e4c4
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https://www.reuters.com/article/us-fiat-exor-chairman-idUSKCN1RE0GA
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Exor's Elkann stresses long-term commitment to Fiat Chrysler
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Exor's Elkann stresses long-term commitment to Fiat Chrysler
By Reuters Staff2 Min Read
MILAN (Reuters) - Exor, the holding company of the Agnelli family, remains committed to Fiat Chrysler (FCA), chairman John Elkann said, in comments that may dampen speculation the Italian carmaker could be the target of a takeover.
Slideshow ( 5 images )
“Our permanence in the capital of FCA has given its successive leadership teams the latitude to plan for the long term rather than having to react to daily pressures,” John Elkann, who is also Fiat Chrysler chairman, said in a letter to Exor shareholders published late on Monday.
“This approach and mindset remain as relevant to us today as ever and our commitment to FCA and to participating in its bold and profitable future is also unchanged.”
Exor, Fiat’s biggest shareholder with a stake of 29 percent, has been diversifying its asset base in recent years after buying U.S. reinsurer PartnerRe in 2015.
Media reports last month said France’s Renault wanted to restart merger talks with Japan’s Nissan Motor. within 12 months, after which it could be eyeing a bid for Fiat.
The president of Peugeot family holding company FFP said he would support a new deal and suggested Fiat Chrysler was among the options.
Elkann said the next 20 years in the car industry were set to witness a great level of change and suggested the Agnelli family, the founders of Fiat, would not passively stand by.
“We are determined that we and Fiat Chrysler will play our part actively and ambitiously in this new and exciting era,” he said in the letter.
After the death of former CEO Sergio Marchionne last year, speculation about the future of Fiat Chrysler has intensified.
Marchionne, who had created the group by merging a troubled Fiat with Chrysler of the U.S., had advocated industry mergers to share the cost of building electric and self-driving cars.
Carmakers around the world are looking to tie-ups to cope with rising competition, the rise of electrification and the threat of a trade war between the United States and China.
Reporting by Stephen Jewkes; Editing by Silvia Aloisi/Keith WeirOur Standards: The Thomson Reuters Trust Principles.
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e8350096abe504ad5f9ad8f6615020da
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https://www.reuters.com/article/us-fiatchrysler-ceo-manley/fiat-chrysler-to-name-jeeps-manley-to-replace-marchionne-as-ceo-source-idUSKBN1KB0MG
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Fiat Chrysler to name Jeep's Manley to replace Marchionne as CEO: source
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Fiat Chrysler to name Jeep's Manley to replace Marchionne as CEO: source
By Reuters Staff1 Min Read
Mike Manley, head of the Jeep brand, speaks the Los Angeles Auto Show in Los Angeles, California U.S. November 29, 2017. REUTERS/Lucy Nicholson
MILAN (Reuters) - Fiat Chrysler (FCA) has named Mike Manley, the head of the carmaker’s profit engine Jeep, as its new chief executive, replacing Sergio Marchionne who had to step down after serious complications from surgery, a source close to the matter said.
Manley’s appointment was first reported by Automotive News.
The boards of FCA and sportscar maker Ferrari, where Marchionne is both chairman and CEO, were meeting on Saturday to discuss succession, two other sources had said.
Another sister company, truck and tractor maker CNH Industrial, which is also chaired by Marchionne, also met on Saturday, the two sources said.
Reporting by Agnieszka Flak; Editing by Mark BendeichOur Standards: The Thomson Reuters Trust Principles.
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963fa209c27f47df09e9d0867de5814b
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https://www.reuters.com/article/us-fidelity-investments-results-idUSKCN0VR2FP
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Fidelity Investments profit dips as it battles tough competition
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Fidelity Investments profit dips as it battles tough competition
By Ross Kerber, Svea Herbst-Bayliss3 Min Read
BOSTON (Reuters) - Fidelity Investments on Thursday said it took in a record amount of revenue but posted a lower profit in 2015 as the mutual fund company spent more on staffing and technology to battle tough competition from larger rivals.
A pedestrian walks past a stock ticker at a Fidelity Investments office in Boston, Massachusetts July 31, 2013. REUTERS/Brian Snyder
Closely-held Fidelity, known for managing millions of retirement and college savings plans, said operating income fell 6 percent to $3.2 billion in 2015.
At the same time revenue climbed 6 percent to $15.9 billion. Company expenses totaled $12.7 billion, 10 percent more than in 2014 because of the cost of employees and computer systems, according to an annual report emailed by a spokesman.
Fidelity, which has been losing ground to rivals like Vanguard Group and BlackRock Inc, said total assets under management grew 1 percent to $2.04 trillion in 2015.
Founded and still run by the family of Chief Executive Officer Abigail Johnson, Fidelity has long been known for its star stockpickers like Will Danoff, manager of the $103 billion Fidelity Contrafund.
But last year investors took $18.8 billion out of Fidelity’s actively-managed stock portfolios, reflecting a growing taste for less-expensive index funds.
In the report Charles Morrison, president of Fidelity’s asset management unit, wrote that despite the active stock funds’ strong performance, “sometimes perception can overshadow reality.” Fidelity is using advertising and client events to renew investors’ faith in active management, he said.
Bond products had inflows of $11.7 billion, Fidelity said. Across all products it administers, Fidelity said net deposits of investor cash totaled $190.8 billion. That was down slightly from $210.3 billion in 2014, though that year’s figure was boosted by an administrative change.
James Lowell, who edits a newsletter for Fidelity investors, said the results showed how Fidelity has more flexibility to invest in itself, even at the expense of profits, compared with publicly-traded competitors.
“The worse the times are for others, the better for Fidelity,” he said.
In a letter to the company’s shareholders, Johnson said customers sought its assistance as never before during the year because of volatile markets.
It handled the increased activity with no disruptions in service, the CEO said, calling this “a testament to the investments we have made in systems and technology.”
Total company-wide employment rose to 45,000 people currently from 42,000 a year ago, said Fidelity spokesman Vincent Loporchio.
Reporting by Ross Kerber; Editing by Andrew Hay and Tom BrownOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-fighter-usa-lockheed-idUSTRE7BC09T20111213
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U.S. to mothball gear to build top F-22 fighter
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U.S. to mothball gear to build top F-22 fighter
By Jim Wolf6 Min Read
WASHINGTON (Reuters) - Even as the last F-22 fighter jet rolls out of flag-draped doors at a Lockheed Martin Corp LMT.N assembly plant on Tuesday, the Air Force has taken steps that leave open an option to restart the premier plane's production relatively cheaply.
The Air Force is preserving the hardware used to build the jet, not scrapping it, although it insists this is solely to sustain the fleet over its projected 30-plus years’ “lifecycle.”
The F-22 is “easily the most capable fighter aircraft ever built, period,” said Richard Aboulafia, a combat plane expert at the Teal Group aerospace consultancy.
“You don’t know what the economy and the strategic picture will look like in a decade,” he said. “And if one gets better and the other gets worse, you could see a restart.”
A lunchtime ceremony feting F-22 program employees will mark the emergence of the 187th and final production model from the Marietta, Georgia, plant, 14 years after the most advanced and most costly per-plane U.S. fighter began flight tests.
F-22 supporters maintain it was terminated prematurely.
The fleet, as conceived during the Cold War, was to have been 750. That dropped to 381, then 243, before former Defense Secretary Robert Gates capped it at 187 in a belt-tightening move over program backers’ strong objections.
A total of more than 30,000 jigs, fixtures and other “tooling” used to build the plane are being logged into a database and tucked into containers, some custom built, for long-term storage at Sierra Army Depot, Herlong, California.
The hardware is valued at $2 billion to $3 billion, according to Lockheed, the Pentagon’s No. 1 supplier by sales.
The Sierra depot’s high desert climate, low humidity and mild temperatures, are optimal for systems that might be needed to build components to support the fleet, or perhaps one day resume production.
Arms production lines have shut in the past only to be brought back, including aircraft such as the submarine-hunting P-3, U-2 spy plane and B-1A bomber resurrected as the B-1B.
Lockheed is under Air Force contract also to preserve the shop-floor know-how used to manufacture the fighter. It is accomplishing this through a video library of “smart books,” DVDs designed to capture such things as how to hold a tool for best results.
The two-pronged preservation effort puts Lockheed in a “great position” to resume production if asked to do so, said Jeff Babione, the company’s F-22 program general manager.
But Lockheed, the Pentagon’s No. 1 supplier, has not been given any reason to think that such a request will come, he added in a telephone interview on Friday.
Bringing back the F-22 line would take less than $200 million, “a fraction of the costs seen in previous line restarts of other weapons systems,” Alison Orne, a Lockheed spokeswoman, said by email, citing preliminary analysis.
The Air Force said government-owned F-22 production is being stored “for the sole purpose of sustaining the F-22 fleet” over its lifetime.
“No F-22 parts, tooling or related items are being stored for the purpose of preserving the option of restarting F-22 production,” Jennifer Cassidy, an Air Force spokeswoman, said in an email.
She said the Air Force had commissioned a RAND analysis to assess tooling preservation options at congressional direction. The study concluded that saving the hardware “may significantly ease the execution of future F-22 sustainment needs, and the storage of that tooling can be provided at relatively low cost.”
CUTTING EDGE
The radar-evading F-22 “Raptor” entered service in 2005, designed to own the skies on the first day of a conflict because of its low observability, high maneuverability plus sensor advances that make it the top gun for air-to-air combat.
Its cutting-edge capabilities, including agility, engine thrust and flight controls, “cannot be matched by any known or projected fighter aircraft,” according to a U.S. Air Force fact sheet on the plane, which has not yet been used in combat.
The F-22 represents the high end of a tactical fighter mix that advocates say is critical to defend worldwide U.S. interests over coming decades alongside the F-35, a less capable, less costly, Lockheed stealth fighter now in early production.
The Pentagon currently plans to buy more than 2,440 F-35s for the Air Force, Navy and Marine Corps at $382.5 billion through 2035, its costliest purchase ever.
The current “program acquisition unit” cost of the F-35A model for the Air Force is $111 million, including “mission systems” and sustainment.
By contrast, the last production lot of four F-22s cost $153 million each, according to Lockheed, not including amortized research, development and maintenance that experts say would add more than $200 million apiece.
RESTART BUTTON?
Advocates of a larger F-22 fleet have cited emerging Russian and Chinese stealth fighters as well as the spread of sophisticated surface-to-air missiles that can home in all but the hardest-to-detect fighters.
The F-22 was barred from export sales to protect its high-tech secrets.
Michael Wynne, who was forced out as Air Force secretary in 2008 after disagreeing with Gates over the production cap, said by email that Japan and Australia would “immediately partner” to restart the line if Congress lifted the F-22 export ban.
Reporting by Jim Wolf; Editing by Tim DobbynOur Standards: The Thomson Reuters Trust Principles.
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6dd328859d445b010157fbb5d915dcd4
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https://www.reuters.com/article/us-figureskating-world-men-idUSKBN1712MI?feedType=RSS&feedName=sportsNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reuters/sportsNews+(Reuters+Sports+News)
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Figure skating: Fernandez proves there is more to skating than just jumps
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Figure skating: Fernandez proves there is more to skating than just jumps
By Pritha Sarkar4 Min Read
HELSINKI (Reuters) - Javier Fernandez proved that being a world champion is not just about being a quad-jumping powerhouse when he produced a mesmerizing short program to hold off a throng of challengers at the figure skating world championships on Thursday.
Figure Skating - ISU World Championships 2017 - Men's Short Program - Helsinki, Finland - 30/3/17 - Javier Fernandez of Spain competes. REUTERS/Grigory Dukor
The Spaniard’s pursuit of a hat-trick of world titles could not have got off to a better start with a hypnotic performance to Spanish guitar music Malaguena to earn 109.05, shattering his previous personal best by almost five points.
Fernandez’s skills left the rest of the field trailing and Shoma Uno ended up being the best-of-the-rest, finally emerging from the shadow of his more illustrious compatriot, Olympic champion Yuzuru Hanyu, to finish second with 104.86.
The old-school style of Canada’s Patrick Chan also won over the judges as he broke the 100-point barrier in an international meet for the first time to finish third with 102.13. He was the only competitor in the top six to attempt only one quad in the two-minute-40-second routines.
“I have been waiting to break the 100 at an (international) event,” said the 26-year-old, who won a hat-trick of world titles before settling for Olympic silver behind Hanyu in 2014.
“To do it at worlds, just shows what I could potentially score if I did add a second quad.”
Before the start of the competition, all the hype had been about the number of high-scoring jumps the ‘Next Gen’ of skaters were cramming into their programs.
On Thursday, 20 of the 36 skaters had ambitions to execute the jump that requires four complete aerial revolutions before touch-down on the ice.
Of those, seven had included two quads in their short programs.
American Nathan Chen, the first man in history to land four different types of quads (Lutz, flip, toeloop, Salchow) and five in total in his free skate at this year’s U.S. Championships, has been seen practising six quads for Saturday’s free skate in Helsinki.
He was flying high when he earned a whopping 19.47 points for his quadruple Lutz-triple toeloop combination, the highest score for a single element on Thursday. But the 17-year-old soon came back down to earth with a painful thud when he fell over on his triple Axel.
A score of 97.33 meant the Four Continents champion trailed in sixth place, 1.06 points behind Hanyu.
The Japanese favorite lost momentum after he misjudged his takeoff for his quadruple Salchow-triple toeloop combination and landed on a bended knee following the first jump.
Although that glitch left him 10.66 points adrift of Fernandez, Hanyu is not completely out of the running for gold and will be harboring hopes of gaining revenge on his training partner.
Last year Fernandez, who like Hanyu is coached by 1987 world champion Brian Orser, overhauled a 12-point deficit from the short skate to snatch gold.
Fernandez, however, has no intention of giving up his crown.
“If I am able to come out on top when so many skaters produced such amazing routines, that gives me confidence,” said the five-times European champion.
“I know I can stay here even when younger skaters are challenging me.”
Chinese teenager Jin Boyang’s crowd-pleasing routine to the Spiderman soundtrack earned him a personal best of 98.64, placing him fourth.
Reporting by Pritha Sarkar, editing by Clare LovellOur Standards: The Thomson Reuters Trust Principles.
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9d553ff875daa58e80b0d397855bd8e9
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https://www.reuters.com/article/us-film-avengers-endgame/avengers-endgame-tickets-crush-records-going-for-500-on-ebay-idUSKCN1RE2NB
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'Avengers: Endgame' tickets crush records, going for $500 on eBay
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'Avengers: Endgame' tickets crush records, going for $500 on eBay
By Reuters Staff3 Min Read
LOS ANGELES (Reuters) - Advance ticket sales for Marvel superhero movie “Avengers: Endgame” on Tuesday surpassed the last two “Star Wars” films, and some appeared on resale platforms with asking prices of up to $500 each.
FILE PHOTO: Premiere of “Avengers: Infinity Wars” - Arrivals - Los Angeles, California, U.S., 23/04/2018 - Actor Robert Downey Jr. REUTERS/Mario Anzuoni
Fandango and Atom - two of the top ticketing websites in the United States - said first-day advance sales for Disney’s “Avengers: Endgame” surpassed the 2015 movie “Star Wars: The Force Awakens” and 2017’s “Star Wars: The Last Jedi” - also from Disney. They did not give sales figures.
The new Avengers movie, which brings together multiple comic book characters - including Iron Man, Captain Marvel, Black Widow, Thor and Ant-Man - marks the conclusion of 22 Marvel films. Fan surveys last year showed it was the most anticipated film of 2019.
“’Avengers: Endgame’ sales have exceeded all expectations and surpassed ‘Star Wars: The Force Awakens,’ the previous record-holder, to become Fandango’s top-selling title in its first 24 hours of sales, and it accomplished that feat in only 6 hours,” Fandango Managing Editor Erik Davis said in a statement.
Atom said the movie has set a record for its mobile ticketing service, selling three times more tickets in the first hour than last year’s “Avengers: Infinity War.”
“Avengers: Endgame” starts its movie theater rollout on April 24 in Australia and China before arriving in the United States on April 25.
On eBay, a single ticket for a first-day IMAX screening in Hollywood was being offered for $500. Starting bids for other tickets were around $35 each.
Fans took to social media to complain about websites crashing, error codes and long waits to get their tickets.
“Took me 5 hours to get #AvengersEndgame tickets,” tweeted Meghan Keatley.
“It’s been hours and they paused the site,” a fan called Bakuhoe wrote on Twitter. Five hours later Bakuhoe tweeted, “It was fun waiting with y’all, hope you all get tickets and we can suffer at the diabolical hands of Marvel together.”
“Avengers: Infinity War” was the biggest movie of 2018, grossing $2.04 billion at the worldwide box office.
“Star Wars: The Force Awakens,” with a global box office of $2.06 billion, is the third biggest movie of all time after “Avatar and “Titanic,” respectively.
Reporting by Jill Serjeant; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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ada2ed3614db84093370a3cf351d7a4f
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https://www.reuters.com/article/us-film-birdbox-berlin/sandra-bullock-plays-against-type-in-dystopian-thriller-bird-box-idUSKCN1NX29U
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Sandra Bullock plays against type in dystopian thriller 'Bird Box'
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Sandra Bullock plays against type in dystopian thriller 'Bird Box'
By Reuters Staff2 Min Read
BERLIN (Reuters) - Best known for romantic comedies, Oscar winning actress Sandra Bullock has to fight for survival in dark, dystopian thriller “Bird Box”.
Bullock, known for “Miss Congeniality” as well as dramas “The Blind Side” and “Gravity”, plays Malorie, a woman desperate to keep her two children safe from an unseen threat that leads people to commit suicide.
Premiering the film in Berlin, the 54-year-old said that while she was not usually a fan of scary movies, she enjoyed adding the genre to her portfolio of work.
“Here we had a journey that couldn’t have happened without this deep complex, intricate love story about a family and social commentary on what we all feel is the state of the world,” Bullock told Reuters in an interview on Wednesday.
“Everyone has a different thought about what’s happening in the world today so those two blending together is a rare thing.”
Based on the 2014 novel by Josh Malerman, “Bird Box” sees Malorie take her children on a dangerous trip into the wild, all blindfolded, as they try to escape an “ominous unseen presence”, which if seen, leads to devastating consequences.
“I found I became very agitated, very angry, very frustrated, short tempered and I didn’t realize it was a result of having been blindfolded until like halfway through,” Bullock said.
“I went ‘Oh my God, it’s because I don’t have my tools of expression as an actor’ ... But I think in the end ...it helped give a really jagged feeling to those scenes rather than if I had holes cut in my blindfold and I could see and I was pretending to stumble and be blind.”
“Bird Box”, a Netflix film directed by Danish filmmaker Susanne Bier, also stars Bullock’s “Oceans’ Eight” co-star Sarah Paulson and actor John Malkovich.
Reporting by Ulrike Heil; additional reporting by Tanya Wood; Writing by Marie-Louise Gumuchian; Editing by Robin PomeroyOur Standards: The Thomson Reuters Trust Principles.
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765071c1f1bb968ef29cb11af749081c
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https://www.reuters.com/article/us-film-bond/james-bond-movie-no-time-to-die-delayed-again-amid-pandemic-idUSKBN29R072
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James Bond movie 'No Time to Die' delayed again amid pandemic
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James Bond movie 'No Time to Die' delayed again amid pandemic
By Reuters Staff3 Min Read
LOS ANGELES (Reuters) - The global release of the James Bond movie “No Time to Die” was postponed to October from April, its producers said, another setback for movie theaters trying to rebuild a business crushed by the coronavirus pandemic.
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The movie’s new debut date is Oct. 8, according to an announcement on the James Bond website and Twitter feed.
“No Time to Die”, from MGM and Comcast Corp’s Universal Pictures, had originally been set to hit the big screen in April 2020 before moving to November 2020 and then April 2021.
The film, which cost an estimated $200 million to produce, marks actor Daniel Craig’s last outing as agent 007.
Cinema owners were hoping “No Time to Die” would kick off a rebound in moviegoing. The pandemic devastated the film business in 2020, and ticket sales in the United States and Canada sunk 80%. That hurt independent theaters and big chains including AMC Entertainment, Cineworld Plc and Cinemark Holdings Inc.
With the virus still rampant in many areas, including in the key Los Angeles market, Hollywood studios appear reluctant to send their biggest films to theaters.
Many cinemas are closed, and ones that are open enforce strict attendance limits to allow for social distancing. [L1N2JO00Q]
The UK Cinema Association said the decision to delay the film’s release was “clearly disappointing ... (but) at the same time not surprising”.
“Clearly - like the producers of the film - the UK’s cinema operators look forward when the time is right to ensuring that as many people as possible are able to enjoy this and other major titles on the big screen, their natural environment,” it said, calling for government support for the sector.
The Bond franchise is one of the movie world’s most lucrative, with 2015’s “Spectre” raking in $880 million at the box office worldwide, while “Skyfall” in 2012 grossed more than $1 billion globally.
The next closely watched movie is “Black Widow” from Walt Disney Co’s Marvel Studios, currently scheduled to debut in theaters on May 7.
Reporting by Lisa Richwine; Additional reporting by Marie-Louise Gumuchian in London; Editing by Richard Pullin and Alison WilliamsOur Standards: The Thomson Reuters Trust Principles.
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a6c108ac2218408b417331fa79c2f589
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https://www.reuters.com/article/us-film-dumbanddumberto-jeffdaniels/actor-jeff-daniels-laughs-last-with-dumb-and-dumber-to-idUSKCN0IU1Y020141110
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Actor Jeff Daniels laughs last with 'Dumb and Dumber To'
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Actor Jeff Daniels laughs last with 'Dumb and Dumber To'
By Eric Kelsey3 Min Read
LOS ANGELES (Reuters) - Jeff Daniels’ phone rang, and his agents were on the line.
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“It was an intervention,” said the actor, who had a reputation for serious roles in successful films, of the failed attempt two decades ago to prevent him from doing low-brow comedy “Dumb and Dumber” with two rookie directors.
“We’re going to stop this. You’re not going to do this movie, and we’re going to keep you on the Oscar trail,” Daniels, 59, remembered his agents saying. They could not foresee that his role as the dimwitted, unemployed dog groomer Harry would become one of his most well-known characters and box office successes.
Daniels reprises that role, reputation intact, in “Dumb and Dumber To” - with a misspelled number - alongside Jim Carrey, whose performance as Harry’s equally dense and foolish best friend Lloyd Christmas established the comedian as one of Hollywood’s leading stars.
The gross-out adventure comedy from brothers Bobby and Peter Farrelly will debut in U.S. theaters on Friday and begins with Harry, 20 years older but just as stupid, needing a kidney transplant but unable to find a donor match.
That is until he learns about an unknown daughter he fathered who was put up for adoption. He and Lloyd set out on a road trip to find her but become unwittingly ensnared in a murder plot.
“Find your kid, find your kidney!” Lloyd exclaims to a puzzled Harry.
Their trip unfolds with typical harebrained hijinks, including crossing the country in a borrowed hearse and a stolen Zamboni ice resurfacer.
Although the first “Dumb and Dumber” grossed $247 million worldwide and became a mainstay on U.S. cable TV, Daniels admits his agents were correct that starring in a doofus comedy replete with scatological humor could set him back in Hollywood.
“I think easily for 10 years - and because of the success of ‘Dumb and Dumber’ - I was no longer taken seriously,” he said.
Daniels, who earned Golden Globe acting nominations for “The Purple Rose of Cairo” (1985) and “Something Wild” (1986) did not score another top-tier Hollywood award nomination until 2005’s “The Squid and the Whale.”
“As soon as you do comedy, then you’re not serious anymore, which has always bothered me because the last time you looked, the Greeks are holding up two masks - and to be able to do both seems to be the point of being an actor,” Daniels added.
Two decades on, Daniels has earned enough showbiz gravitas to afford pulling off a “Dumb and Dumber” sequel while still getting to show off his dramatic chops on Aaron Sorkin’s HBO series “The Newsroom,” picking up an Emmy award for best TV drama actor along the way as well.
“I love changing it up,” Daniels said. “I love going from ‘Newsroom’ to ‘Dumb and Dumber.’ I like that range. I like doing what you’re not supposed to do with your career choices.”
Editing by Mary Milliken and Richard ChangOur Standards: The Thomson Reuters Trust Principles.
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55f486b6dbfdbbfb79d8da8d75571aec
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https://www.reuters.com/article/us-film-ghostbusters-idUSKCN0ZO2FD
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New 'Ghostbusters' cast shakes off criticism to revive classic story
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New 'Ghostbusters' cast shakes off criticism to revive classic story
By Piya Sinha-Roy3 Min Read
LOS ANGELES (Reuters) - The four lead actresses of the new “Ghostbusters” are out to prove that women can fight supernatural entities just as well as their male predecessors.
“Ghostbusters” is based on the 1984 film of the same name that saw eccentric ghost hunters played by Bill Murray, Dan Aykroyd, Harold Ramis and Ernie Hudson save New York City from supernatural destruction.
The new film, due in theaters on July 15, follows a similar plot. Eccentric parapsychologists battle ghosts wreaking havoc on Manhattan, this time with Kristen Wiig, Melissa McCarthy, Kate McKinnon and Leslie Jones.
The cast know a little something about being underdogs. When the new “Ghostbusters” movie was announced, it garnered strong positive and negative reactions for its all-female cast, a point subtly referenced throughout the film.
The film’s first trailer released in March divided audiences and garnered more than 900,000 dislikes, YouTube’s most-disliked movie trailer.
“I did not respond well. I might have tweeted out my address to a couple of people to come see me,” Jones said, adding that her costars “had to calm me down.”
Fans of the original franchise may see some familiar faces - human and paranormal - pop up as cameos, as well as gadgets such as the Ecto-1 car and proton packs.
But the real nostalgia is reviving the chemistry of the original foursome, who became cult film heroes.
“I wanted to bring from the spirit of the old ones that even if you don’t believe in us, we’re going to do the right thing anyways,” McCarthy said.
“I think that’s why I love them so much, they’re still saving everybody even though people aren’t rooting for them.”
Director Paul Feig, known for collaborating with McCarthy often in films such as “Spy,” said, “There’s nothing worse than trying to slam a woman into a part that was written for a man,” and instead wanted to provide a platform for the film’s lead cast to showcase their skills.
“It’s just time for women to get to establish themselves in these big leading roles that are three-dimensional, that have foibles and they have vulnerability in a way that women aren’t sometimes allowed to be shown,” he said.
Reporting by Piya Sinha-Roy; Editing by Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.
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918a276c43feee3eea7f4f174bd5c63b
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https://www.reuters.com/article/us-film-hollywood-idUSKCN18F16O
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Hollywood's big summer movies were all filmed elsewhere
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Hollywood's big summer movies were all filmed elsewhere
By Lisa Richwine6 Min Read
LOS ANGELES (Reuters) - This summer’s biggest-budget films have everything moviegoers have come to expect from Hollywood blockbusters: superheroes, pirates, space aliens. But in the truest sense of the term, none of them is a Hollywood movie.
Despite a major effort by Los Angeles over the last two years to lure film production back to where it started, producers continue to make big-budget movies elsewhere, saying they get better tax breaks and subsidies outside of Hollywood.
As a result, the summer’s movies come from all over the globe. Warner Bros. filmed “Wonder Woman” and “King Arthur” in Britain, where the Time Warner Inc studio owns a large production space. Twenty-First Century Fox Inc’s movie studio chose Australia for “Alien: Covenant.” Walt Disney Co’s Marvel Studios rolled its cameras in Georgia for “Guardians of the Galaxy Vol. 2,” one of six superhero movies it has filmed near Atlanta.
“The support we get in Georgia is tremendous,” Marvel Studios President Kevin Feige said in an interview. “We’re certainly doing many of our biggest films there well through this year and into next year.”
Twenty-five years ago, most big-budget films were filmed primarily in Los Angeles. Since then, to lure production, locations across the United States and around the globe have begun offering tax credits or rebates of up to 40 percent of local production spending, a sizable savings on action films that cost up to $250 million to make.
Thirty-two U.S. states and dozens of foreign countries now offer tax credits or rebates, plus other benefits such as waivers of permit fees.
Along with subsidies, the small, former Soviet country of Georgia offers another perk to filmmakers.
“We have many derelict, abandoned small villages or factories. They are mostly state-owned still, and you can easily just blow (them) up,” said Sophio Bendiashvili, head of the country’s film rebate program, at a conference last month hosted by the Association of Film Commissioners International.
In most cases, neither studios nor the filming locations will disclose specific details of subsidies granted, but executives acknowledge that they are a key factor in deciding where to film.
A representative of Poland, one of dozens of officials promoting their production tax incentives at a conference hosted by the Association of Film Commissioners International, speaks with a guest in Burbank, California, U.S. on April 7, 2017. REUTERS/Lisa Richwine
The economic value of subsidies for the locations offering them remains under debate. Proponents argue they attract jobs and spending that outweigh their costs, while critics say the benefits are overstated and the incentives divert taxpayer money from other needs. Some states that used to offer subsidies, including Michigan and Louisiana, have stopped doing so or pared them back substantially.
Still, California decided in 2014 to sweeten its own subsidies in an attempt to lure production back. The results have been mixed. Many more television shows are now being filmed in the state, but it still struggles to attract the mega-budget action movies that hit screens from May through the U.S. Labor Day holiday in early September.
One of Hollywood’s biggest stars, actor and producer Dwayne Johnson, moved his HBO TV series “Ballers” from Miami to the Los Angeles area after securing a California tax break. Johnson said he would like to film his big movies there, too.
“On the TV side, the incentives are fantastic,” Johnson said in an interview. “On the film side, there is a lot of room for improvement.”
Johnson’s upcoming movie for Paramount Pictures, a remake of the TV show “Baywatch” about California lifeguards, was filmed on Tybee Island, Georgia, with help from tax credits.
Hollywood used to have a firm grip on film production because of its infrastructure, which includes numerous sound stages as well as specialized equipment and a large network of experienced crew members, actors and extras.
Increasingly, other locations such as the state of Georgia are offering good production facilities and trained personnel, though producing outside Los Angeles still often requires flying in some key workers.
“You have to think of these productions as three-legged stools,” said Mary Ann Hughes, Disney’s vice president of film production planning. “You need a local crew base, local infrastructure, and the production incentives.”
California offers a 20 percent credit for feature films, applicable to $100 million in spending. Some costs receive an additional 5 percent. The state does not apply the credit toward one large chunk of movie budgets - the salaries of actors, directors and producers - as other locations do.
Since upping the subsidies, Hollywood has landed two forthcoming big-budget films. Disney’s adaptation of children’s book “A Wrinkle in Time” received an $18 million credit for $85 million in spending, and an untitled Paramount release was awarded $22 million for $102 million in spending.
But for most big-budget films, says Paul Audley, president of Hollywood-area film office FilmLA, “it simply doesn’t make economic sense for them to come back.”
Some officials in California say the increase in television and middle-budget film production is evidence the higher subsidies have been effective. The incentives have brought 11 TV series back to the state since 2015.
“It really is working. It is keeping a lot of people employed, and that is our goal,” said Amy Lemisch, executive director of the California Film Commission.
Reporting by Lisa Richwine; Additional reporting by Piya Sinha-Roy in Los Angeles, Zachary Fagenson in Miami, and Byron Kaye in Syndey; Editing by Sue Horton and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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c5c2af972cc77fbc38a6bfcef6d53827
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https://www.reuters.com/article/us-film-hughjackman/hugh-jackman-on-logan-its-time-to-leave-the-party-idUSKBN1DO2NW
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Hugh Jackman on 'Logan': 'It's time to leave the party'
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Hugh Jackman on 'Logan': 'It's time to leave the party'
By Rollo Ross3 Min Read
LOS ANGELES (Reuters) - “I know Aussies are not known for leaving the party at the right time but (after) 17 years, it’s time to leave the party,” Hugh Jackman quipped as he discussed his last time playing X-Men superhero Wolverine in this year’s gritty action hit “Logan.”
The Australian actor made his breakthrough as the gruff, clawed mutant Wolverine in 2000’s “X-Men” film and has since played the character eight times on screen. But with this year’s “Logan,” Jackman said he and the filmmakers took the biggest risk for his final performance as the mutant hero.
“This was not a given moneymaker,” Jackman said in an interview.
“People considered this to be the biggest risk, the most foolish risk ever taken, and I think people assume you’re just doing a sequel because it’s a moneymaker, but my experience from being within it is that it’s always felt like a risk and I think that’s to be embraced.”
“Logan” was the first time Jackman, 49, played his character in an R-rated film, where he was allowed to embrace the darker, more tormented side of Wolverine.
In the film, an older, wearier Logan struggles with alcoholism as he rescues a young mutant girl and unwillingly aids her in her journey to get to safety, the two forging an unlikely friendship despite both their explosive tempers.
“This is a man whose life is centered on violence,” Jackman said. “It seemed very difficult thematically, not just in terms of graphic violence but the consequences of violence, it seemed impossible to make that as a PG-13 movie and really get into the thematic of that and on a serious level.”
The film received strong praise from critics when it was released in March, grossing more than $600 million worldwide according to BoxOfficeMojo.com. Film studio 20th Century Fox is hoping Jackman’s new take on the character will give “Logan” a competitive edge in the upcoming awards season, which does not usually favor big-budget comic book films.
“It’s a great time for us as actors or creators of stories,” Jackman said. “I’m thrilled that the Academy (of Motion Picture Arts and Sciences, voters of the Oscars) is seeing that there are less boundaries in a way of what makes a really good film, and the genre shouldn’t dictate that.”
Reporting by Rollo Ross for Reuters TV; Editing by Piya Sinha-Roy and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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fe5eb1bd6c5e7aa23fb0a618b230526a
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https://www.reuters.com/article/us-film-star-wars/lando-r2-d2-get-tv-spinoff-series-patty-jenkins-to-direct-next-star-wars-movie-idUSKBN28L053
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Lando, R2-D2 get TV spinoff series, Patty Jenkins to direct next 'Star Wars' movie
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Lando, R2-D2 get TV spinoff series, Patty Jenkins to direct next 'Star Wars' movie
By Reuters Staff3 Min Read
LOS ANGELES (Reuters) - Walt Disney Co on Thursday announced a raft of new “Star Wars” content for movie theaters and its streaming service, including a feature film from “Wonder Woman” director Patty Jenkins.
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The entertainment company detailed 10 new TV shows based on favorite characters from the sci-fi saga, including smuggler Lando Calrissian and droids C-3PO and R2-D2.
The announcement by Lucasfilm president Kathleen Kennedy came during a presentation for investors and follows the success of the “Star Wars” hit spinoff series “The Mandalorian” on Disney+ since November 2019.
Kennedy said the “The Mandalorian,” featuring fan favorite Baby Yoda, had opened “an entirely new era for ‘Star Wars’” and the chance to explore some 25,000 years of history in the galaxy far far away.
The Jenkins feature film, called “Rogue Squadron,” will premiere in movie theaters at Christmas 2023. Kennedy said New Zealand director Taika Waititi was still writing the screenplay for another as yet untitled film in the franchise that Disney announced in May.
The announcements came a year after Disney decided to pause the development of “Star Wars” movies, one of the industry’s most lucrative franchises, to focus on TV shows following the relatively disappointing box office takings for “Solo” in 2018.
On Thursday, Kennedy said two “Mandalorian” spinoff series, called “The Rangers of the New Republic” and “Ahsoka” would come to Disney+ at Christmas next year.
Actor and singer Donald Glover will reprise his role as the dashing smuggler for TV series “Lando,” while Hayden Christensen will return as Darth Vader in “Kenobi,” based on Jedi master Obi-Wan Kenobi, for what Kennedy called the “rematch of the century.” Production on “Kenobi” is due to start in March.
Disney also announced a new spy series called “Andor,” featuring “Rogue One” rebel alliance intelligence officer Cassian Andor that started filming in London two weeks ago.
“This is a new era for ‘Star Wars’ and Lucasfilm with expanded opportunities for continued innovation, high quality story-telling and cinematic experiences like never before,” Kennedy said.
Animated series coming to Disney+ in the next few years include “A Droid Story,” featuring the beloved C-3PO and R2D2, and “The Bad Batch” about experimental clones.
Reporting by Jill Serjeant and Lisa Richwine; Editing by Karishma SinghOur Standards: The Thomson Reuters Trust Principles.
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48a5d7d69bb08f075e3574b4d4b50f20
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https://www.reuters.com/article/us-film-starwars-auction/u-s-auctioneer-withdraws-star-wars-lightsaber-on-authenticity-issue-idUSKBN1OA018
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U.S. auctioneer withdraws 'Star Wars' lightsaber on authenticity issue
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U.S. auctioneer withdraws 'Star Wars' lightsaber on authenticity issue
By Reuters Staff2 Min Read
LOS ANGELES (Reuters) - A California auction house on Monday withdrew from sale a lightsaber described as having been used by Luke Skywalker in the first “Star Wars” movie after fans raised concerns about its authenticity.
The lightsaber was due to be sold by Profiles in History at a Los Angeles auction on Thursday with an estimated sale price of up to $200,000.
It was described as having been one of five designed by Oscar-winning “Star Wars” set decorator Roger Christian and used by actor Mark Hamill’s young Skywalker character in the 1977 film “Star Wars: A New Hope.” Christian had supplied a letter of authenticity to accompany the sale.
“In light of conflicting information regarding the origin of Roger Christian’s Lightsaber, Profiles in History has decided to withdraw the piece from this auction until Mr. Christian can clear up the inconsistencies that have been brought to our attention,” Profiles in History chief executive Joe Maddalena said in a statement.
Christian did not immediately respond to a request for comment, and Profiles in History declined to comment further.
Some Hollywood memorabilia and “Star Wars” fans had raised questions about whether the lightsaber was used by Hamill in the film, or might be a replica or prototype.
California-based Jason DeBord, the editor-in-chief of the originalprop.com blog, examined postings by Christian on social media websites in 2015 and 2016 in which the artist wrote about making recent exact prototypes of the 1977 Skywalker lightsaber.
“Star Wars” movies have made billions of dollars at the box office worldwide, and props and costumes from the sci-fi saga can fetch sky-high prices at auction.
A different lightsaber used by Skywalker fetched $450,000 at auction last year.
Reporting by Jill Serjeant; editing by Bill Tarrantand Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
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64a9398b598bb11decacf975979eb5e1
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https://www.reuters.com/article/us-film-starwars-ford-idUSKBN0TT1XB20151210
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Harrison Ford says he's not involved in 'Star Wars' spin-off
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Harrison Ford says he's not involved in 'Star Wars' spin-off
By Rollo Ross2 Min Read
LOS ANGELES (Reuters) - Harrison Ford reprises the role of Han Solo in the next “Star Wars” film but the Hollywood actor says he will not be involved in the character’s own standalone movie.
The Walt Disney Co said in July the space saga hero would get his own film, set for release in May 2018.
Asked about the project and who he thought should be cast, Ford told Reuters: “I don’t think it’s about being like me, it’s about us being like Han Solo.
“So I’m sure whoever is responsible for that film, and I’m not, will think through the issues and problems of doing such a thing ... Let’s make them responsible for those questions you might think to ask me because I’m not involved.”
Disney said the standalone would look at how Han Solo became the smuggler Luke Skywalker and Obi-Wan Kenobi first meet in the 1977 original “Star Wars” film.
Asked if he would provide any tips on how to be Han Solo in the spin-off, Ford, 73, said: “No, I’m not going to do that.”
The upcoming “The Force Awakens”, the first “Star Wars” film installment in 10 years, has been kept under wraps bar some broad character outlines.
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“I’m pleased to see the skill with which the story has been rendered,” Ford said. “I think it all came together very well.”
The movie will premiere in Los Angeles on Monday and hit cinemas soon after in one of the most-anticipated releases of the year.
“I don’t really worry about it any more. I didn’t worry about it then because I felt like it had very little to do with me,” Ford said when asked how the upcoming release compared to the one in 1977.
“I don’t worry about it now because it’s just going to be whatever it is.”
Reporting by Rollo Ross in Los Angeles; writing by Marie-Louise Gumuchian in London; editing by Andrew RocheOur Standards: The Thomson Reuters Trust Principles.
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73465405986ce83b39e507a1e15269e1
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https://www.reuters.com/article/us-film-theaters/netflix-streaming-services-win-oscars-cinema-rule-battle-idUSKCN1S00SN
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Netflix, streaming services win Oscars cinema rule battle
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Netflix, streaming services win Oscars cinema rule battle
By Reuters Staff3 Min Read
(Reuters) - In a win for Netflix, Amazon and other internet streaming services, the Academy of Motion Picture Arts and Sciences has voted not to change its rules for winning an Oscar, Hollywood’s top prize.
The decision follows a battle over how long a movie must play on the big screens in theaters before being launched on the internet, DVD or other mediums that put it on the small screen.
The Academy’s Board of Governors said on Tuesday that the existing rules, which say a movie has to run in a theater for only seven days in Los Angeles to qualify, had won.
“We support the theatrical experience as integral to the art of motion pictures, and this weighed heavily in our discussions,” Academy President John Bailey said in a release.
Some theater owners say short runs at a theater means more people will stay home to watch movies.
And movie producers including Steven Spielberg have said movies that are shown primarily on the small screen should only compete for television awards, such as the Emmys.
In February, Netflix won three Oscars for “Roma,” which streamed three weeks after a limited theatrical debut.
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Netflix tweeted that it “loved cinema” but also supported access for people who cannot afford, or do not live close to, theaters.
Shorter windows would keep some customers at home, Greg Marcus, chief executive of The Marcus Corporation, owner of the fourth-largest U.S. theater chain, earlier told Reuters.
“If you damage the business and take away 10 percent of our customers, we won’t be able to reinvest in the theatrical experience,” Marcus said. “That would ultimately hurt content providers.”
Others said consumers are happy with the current system.
Ticket sales in 2018 reached a record $41 billion globally and $12 billion in the United States and Canada, even as Netflix released about 90 movies for streaming.
“We’re not talking about something that’s broken,” Vue International cinemas CEO Tim Richards said in an earlier interview with Reuters.
The Academy’s Bailey said the rule could be revisited next year.
“We plan to further study the profound changes occurring in our industry and continue discussions with our members about these issues,” he said.
Reporting by Rich McKay and Lisa Richwine; Editing by Alexander SmithOur Standards: The Thomson Reuters Trust Principles.
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5d13533a837afb7d9f62f8266c08e469
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https://www.reuters.com/article/us-film-zacefron-idUSKCN0QH1G920150812
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Zac Efron says new 'Baywatch' movie to be raunchy comedy
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Zac Efron says new 'Baywatch' movie to be raunchy comedy
By Holly Rubenstein2 Min Read
LONDON (Reuters) - Former teen idol Zac Efron, who rose to fame in the Disney “High School Musical” franchise, says the upcoming “Baywatch” movie in which he will co-star with Dwayne “The Rock” Johnson will be almost nothing like the 1990s TV series about lifeguards.
Although the movie is in preliminary stages, Efron said he was looking forward to it departing from the TV show that starred David Hasselhoff and Pamela Anderson and almost always featured a rescue at sea, no matter how tangential to the plot.
“It’s going to be R-rated and it’s going to be badass,” Efron told Reuters, referring to the Hollywood classification for movies containing adult material.
Efron, who was in London for the European premiere on Tuesday of his new movie “We Are Your Friends”, in which he plays a DJ who gets caught up in the drug-and-booze-fuelled world of the California party and club scene, said the evolving “Baywatch” movie would skew towards comedy and raunch.
“I think we’re going like pretty big with it and I don’t think it’s going to be much like the old ‘Baywatch’ to be honest. I think we’re going to kind of reinvent it in a big way, and he (Johnson) has big plans for it. I know he’s very ambitious.”
Efron also responded to a tweet sent by Johnson, who doubles as a producer for the film, which read: “BIG NEWS: Welcoming my dude @ZacEfron to #BAYWATCH. Our movie will be big, fun and RATED R... Like me when I drink.”
Efron replied saying: “So stoked brother - baby oil for 2 plz.”
“We Are Your Friends” will be released in British cinemas on August 27.
Writing by Michael Roddy; Editing by Digby LidstoneOur Standards: The Thomson Reuters Trust Principles.
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2863fd70efeada8d50d4940a88e45b2c
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https://www.reuters.com/article/us-filmfestival-cannes-rossellini/ingrid-bergman-had-made-peace-with-america-says-daughter-rossellini-idUSKBN0O20M520150517
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Ingrid Bergman had made peace with America, says daughter Rossellini
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Ingrid Bergman had made peace with America, says daughter Rossellini
By Julien Pretot4 Min Read
CANNES, France (Reuters) - Ingrid Bergman died in peace with the United States, the country that chased her out over a scandalous romance in 1950, according to Isabella Rossellini, the daughter of the Swedish film icon.
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Bergman’s career included films directed by Jean Renoir, Ingmar Bergman, Alfred Hitchcock and Roberto Rossellini, who became her second husband and father of three of her children.
Her love affair with the Italian film maker while they were both still married sparked outrage in the United States with a senator even saying she was “a powerful influence for evil”.
“Mama of course was very hurt because she could not see her daughter (Pia) from her first marriage. She was hurt by the scandal, she felt she paid such a high price for it but eventually it was resolved. She made peace with it,” Isabella Rossellini told Reuters on Sunday.
The Italian actress was speaking ahead of the release at the Cannes Film Festival of “Ingrid Bergman in her own words”, a documentary film about her mother’s life.
Cannes is paying tribute to Bergman, who would have turned 100 this year. A picture of the Swedish actress, who died in 1982 from breast cancer, features on the festival’s official poster.
“Mama wrote a letter to my father saying ‘I want to work with you’ and she ended the letter saying ‘in Italian I can only say ti amo (I love you)’ and of course the press used that to say women are sexual predators,” Rossellini said, explaining the origins of the scandal.
“In 1949 they made a first film together, ‘Stromboli’, and they fell in love and my mother became pregnant with my brother Roberto before she could obtain a divorce.
“This created a big scandal and she was chased out of America because they felt that foreigners and stars, we come to America, and then behave immorally and are bad examples to the younger generations.”
Bergman, however, was not one to live in the shadows and she made a triumphal return in 1956, winning her second Academy Award for best actress, in Anatole Litvak’s “Anastasia”. In 1974 she collected her third Oscar -- for the best supporting actress in “Murder on the Orient Express”.
The new documentary uses 16-mm archive footage showing the actress, presented as a carefree, joyful and bold character, behind the scenes on filmsets but also at home with her family.
“She showed that women are independent, that women want to tell their own story, want to take initiative but sometimes they can’t because sometimes our social culture doesn’t allow women to break away from certain rules,” said Rossellini.
Bergman’s deep sense of freedom (“I don’t want any roots”, she once said) took her around the world and her “naturalness” as an actress, according to Rossellini, earned her parts with the world’s best directors.
“She was able to integrate so many cultures... she is not even American but she is totally part of American culture like she is totally part of the Swedish, Italian, French, European film making,” said Rossellini.
“She worked in five languages, she worked with directors from my father to Hitchcock, from Renoir to Victor Fleming, from (George) Cukor to Ingmar Bergman, it gave her a range that is probably bigger than other Hollywood stars like Katharine Hepburn, to give one example.”
Reporting by Julien Pretot; Editing by Rosalind RussellOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-filmfestival-cannes-the-harvesters/first-time-director-brings-post-post-colonial-south-africa-to-cannes-idUSKCN1IH2B1
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First-time director brings "post-post-colonial" South Africa to Cannes
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First-time director brings "post-post-colonial" South Africa to Cannes
By Will Russell3 Min Read
CANNES, France (Reuters) - With its characters herding cattle through an austere, dusty landscape, “The Harvesters” bears a passing resemblance to a Western.
But the setting of the movie, which won critical acclaim for its first-time director in Cannes, is not the Wild West but South Africa, and its cowboys are Afrikaners, a community that thrived in the apartheid era but now faces an uncertain future.
The story follows teenage boy Janno, the oldest child and only son in a God-fearing family whose life and sense of self are thrown into chaos by his parents’ decision to foster an orphan, Pieter, a 13-year-old child recovering from drug addiction and life as a rent boy.
Writer-director Etienne Kallos, a South African, but not an Afrikaner, was drawn to the story of a community in a “post-post-colonial” world that finds itself increasingly isolated.
“They are overlooked, I would say, in many ways,” Kallos told Reuters in Cannes.
“They are under-represented, especially because the only thing people think about is apartheid. But there’s so much more going on.
“The new generation of Afrikaners was born completely outside the apartheid regime and they’re moving towards some sort of a new Africa and don’t know what that is yet.”
There is a sense of identity under threat, both for the community and for Janno himself, played by newcomer Brent Vermeulen, whose deep feelings for his best friend do not fit with the macho rugby-playing culture.
Screen Daily said: “This assured feature debut effectively hints at a churning savagery beneath the surface, which is every bit as unforgiving as the stark landscape”.
That landscape, in Eastern Free State and KwaZulu-Natal, with its mesas, striking flat-topped mountains, was the starting point for Kallos.
“I set out to make a film about place,” he said.
“We worked hard to somehow capture ... a grandeur that the landscape is bigger than the people.
“I wanted to feel the landscape was more important than the characters or more powerful than the characters.”
“The Harvesters” (“Die Stropers”) is in competition in the “Un Certain Regard” section at the Cannes Film Festival that runs to May 19.
Writing by Robin Pomeroy; Editing by Alison WilliamsOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-filmfestival-sundance/buyers-jockey-for-indie-films-at-sundance-without-weinstein-idUSKBN1F7351
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Buyers jockey for indie films at Sundance without Weinstein
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Buyers jockey for indie films at Sundance without Weinstein
By Piya Sinha-Roy, Lisa Richwine5 Min Read
PARK CITY, Utah / LOS ANGELES (Reuters) - For the first time in three decades, producer Harvey Weinstein will not be trudging down Park City’s snowy Main Street when the Sundance Film Festival opens Thursday, leaving the independent movie festival marketplace without its most-watched tastemaker.
FILE PHOTO: The marque on the Egyptian Theatre is pictured before the opening day of the Sundance Film Festival in Park City, Utah, U.S. January 21, 2015. REUTERS/Jim Urquhart/File Photo
His absence will be filled by streaming services, upstart studios and veteran production houses scrambling to buy the most buzzed-about films at the festival in an industry undergoing dramatic change.
"Some of the old guard, the usual suspects at Sundance, have stepped aside or have fallen back a bit," said Ian Bricke, director of content acquisition for Netflix Inc NFLX.O.
“There’s a whole range of new players,” he added. “It creates excitement and some degree of chaos in the marketplace.”
Weinstein was an unmissable presence in previous years, at times loudly negotiating deals in the foyers of theaters just after movie premieres. The producer built a career on finding awards-worthy gems at Sundance. Competitors watched his picks closely, often launching bidding wars and driving up prices.
This year, Weinstein is out of the mix, fired as chief executive of the Weinstein Co after more than 70 women accused him of sexual harassment or assault, allegations that spanned three decades. He has denied having non-consensual sex with anyone.
Sundance, founded by Robert Redford’s Sundance Institute and now in its 33rd year, has become the independent film industry’s premiere U.S. gathering.
Evolving movie-watching habits have brought new buyers in recent years, with Netflix and Amazon.com Inc AMZN.O leading the march of digital outlets to Sundance.
The streaming services had started to outbid Weinstein Co for standout films. Filmmakers prospered as Amazon paid $12 million for “The Big Sick” and Netflix paid $12.5 million for “Mudbound” in 2017.
This year, it was unclear whether those outlets will replace Weinstein as the pacesetters.
Amazon plans to shift some resources from independent films to projects with more commercial potential, sources told Reuters. Netflix also is investing in bigger-budget movies, although Bricke said it remained interested in independent films.
The traditional studio stalwarts owned by media giants, such as Fox Searchlight FOXA.O, Sony Pictures Classics 6758.T and Focus Features CMCSA.O, all will be on the hunt at Sundance, with competition from newer independent studios such as The Orchard and A24, distributor of last year's Oscar-winning "Moonlight."
CHANGING THE DISTRIBUTION CONVERSATION
Technology companies Hulu, Alphabet Inc's GOOGL.O YouTube and Apple Inc AAPL.O also will be searching for hits.
With so many options, filmmakers will consider more than just the size of the check because digital players offer different ways to get films in front of audiences. Netflix focuses on streaming movies simultaneously to members in more than 190 countries with only limited theatrical runs.
“Netflix has completely changed the conversation and the way we think about distribution,” said Hannah Fidell, co-writer and director of “The Long Dumb Road,” debuting at Sundance this year. “It requires knowing what you want out of the movie before the sale.”
Anticipated films at Sundance this year include Thursday’s opening night feature “Blindspotting,” about a pair of Oakland men navigating their changing friendship; actor Paul Dano’s directorial debut “Wildlife” starring Carey Mulligan and Jake Gyllenhaal; and music documentary “Matangi/Maya/M.I.A.”
Independent films will remain a key part Netflix’s slate of 80 original films this year, Bricke said. The company will look for possible acquisitions at Sundance as well as new talent to work with.
Amazon has set up its own distribution arm to debut movies in theaters. It also offered to pay up to $200,000 plus royalties per stream to all filmmakers with movies in competition at Sundance this year, to acquire content for an exclusive period for its online library.
YouTube also will look for possible additions to its programming lineup and will consider a variety of distribution options, said Susanne Daniels, YouTube’s global head of original programming. That could include limited or full theatrical runs, or sales through video-on demand, she said. “We are open to a lot of different models,” Daniels said.
Reporting by Piya Sinha-Roy and Lisa Richwine; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-filmfestival-tiff-hotelmumbai/hotel-mumbai-dubbed-an-anthem-of-resistance-idUSKCN1LP005
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'Hotel Mumbai' dubbed an 'anthem of resistance"
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'Hotel Mumbai' dubbed an 'anthem of resistance"
By Gina Cherelus2 Min Read
TORONTO (Reuters) - “Hotel Mumbai,” about the 2008 attack on a hotel in the Indian city, received a standing ovation at its world premiere at the Toronto Film Festival, and the cast and filmmakers said they believe that’s because of the human portrayal not only of the victims but also the perpetrators.`
Slideshow ( 7 images )
The film, starring Dev Patel, Armie Hammer and Jason Isaacs, recounts the attack on Mumbai’s luxury Taj Mahal hotel, where dozens of guests and hotel workers were killed during a three-day siege carried out by Pakistan-based Islamist militants.
Most of the film is told from the point of view of those trapped in the hotel, and also from that of the gunmen.
“You had a whole lot of people from different backgrounds, racial, ethnic, from different socioeconomic groups who came together in the face of real adversity to survive,” Australian director Anthony Maras told a news conference on Saturday.
“As Dev (Patel) said yesterday, ‘it’s an anthem of resistance.’”
The cast said the film, which also uses television footage of the siege, brought some of them to tears when they watched the finished version for the first time. Hammer, who plays American hotel guest David, said that the script was “dripping in humanity.”
“You see the toll the attack has on the guests and the staff of the hotel, but you also see it, really for the first time that I can think of, on the actual perpetrators,” Hammer said.
The Hollywood Reporter praised the film’s “nail-biting detail and ... an impressive you-are-there quality,” while The Wrap said it “delivers a show-stopping account.”
The siege at the Taj Mahal Hotel was one of a coordinated series of attacks across Mumbai in which more than 160 people were killed and hundreds wounded.
“Hotel Mumbai” follows a 2013 Bollywood film, “The Attacks of 26/11,” that was told from the point of view of the Mumbai police.
Reporting by Gina Cherelus; editing by Jill Serjeant and Grant McCoolOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-financial-crisis2008-smallinvestor-an/ten-years-after-crash-americans-still-have-not-fallen-back-in-love-with-stocks-idUKKBN1GU0EX?edition-redirect=uk
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Ten years after crash, Americans still have not fallen back in love with stocks
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Ten years after crash, Americans still have not fallen back in love with stocks
By David Randall, April Joyner6 Min Read
NEW YORK (Reuters) - Luke Thomas, 44, an information technology field manager who lives in Miami, began investing in the U.S. stock market in his early 20s, attracted by the prospect of learning “how to grow a little bit of money into a lot,” he said.
At the time, he put most of his money into a handful of small-cap and over-the-counter stocks. Yet watching the Russell 2000 index of small-cap companies fall more than 60 percent during the 2008-2009 financial crisis scared him into diversifying his portfolio. He now invests in large-cap stocks, real estate, options, and cryptocurrencies such as bitcoin, spreading his risk over several asset classes.
“A younger Luke would have focused 90 percent on crypto, putting all my eggs in one basket. But this way, I’m not overly exposed,” he said.
Thomas is not alone in his hesitation to make big bets.
Ten years after the start of the financial crisis that erased $16.4 trillion in assets from U.S. households, Americans have yet to embrace the U.S. stock market with the same fervor as before, holding fewer individual stocks and putting less money into equities overall despite an uninterrupted 9-year bull market that has pushed the S&P 500 up nearly 310 percent from its 2009 lows.
Overall, U.S. households have $900 billion less invested in stocks than in 2007, according to Goldman Sachs research, leaving buying by U.S. corporations now the greatest driver of demand. In 401(k) retirement plans, meanwhile, investors now hold an average of 52.4 percent in equity-only funds, down from the 64.7 percent they held in 2007, according to Fidelity.
Instead, investors now hold an average of 33.2 percent of their assets in blended target-date funds that combine stocks, bonds and cash based on a person’s expected retirement date, more than double the 14.5 percent of assets invested in the category in 2007.
A bronze "Charging Bull" statue is seen in New York's financial district March 4, 2016. REUTERS/Brendan McDermid
The decline in the assets invested in stocks comes even as investors have largely benefited from the recovery in equity prices. The average 401(k) balance at the end of 2017 was $104,300, up 112 percent from the average of $49,000 at the end of 2008 and up 54 percent from the pre-crisis average of $67,600 at the end of 2007, according to Fidelity.
“There just doesn’t seem to be the same level of interest or animal spirits” among investors now for equities, said Mark Paccione, director of investment research at Raleigh, North Carolina-based Captrust Financial Advisors, which oversees $250 billion in assets.
Clients are much more concerned about the effect of rising interest rates and inflation on their bond portfolios, he said.
“They’re very worried we will have a bear market in bonds and direct almost all of their focus there,” he said.
ERA OF STOCK-PICKING LOOKS OVER
Investors are not only holding fewer assets in stocks overall, but those dollars that are invested in the market are increasingly likely to be put into index funds or exchange-traded funds that track broad indexes rather than in individual shares or funds that are run by a stockpicker.
Financial advisors say that the push is driven by clients who lost trust in the ability of professional fund managers after nearly all of them failed to anticipate the financial crisis.
“Index investing is more prevalent than it’s ever been, and that’s because active management didn’t protect you from losses during the crisis and has underperformed over the last 10 years,” said Matt Hanson, a senior wealth advisor at Los-Angeles based Kayne Anderson Rudnick, which oversees approximately $18.9 billion in assets.
Passive funds now comprise about 46 percent of total mutual fund and ETF assets, compared with just 8 percent in early 2008, according to fund-tracker Morningstar. There are now 1,400 passively managed equity mutual funds and ETFs, with a total of $5.4 trillion in assets, compared with 707 funds holding $1.2 trillion in 2007, according to Lipper data. That push toward passive investing has helped make index-based fund providers BlackRock Inc and privately-held Vanguard the world’s two largest money managers.
The growth rates of the trading of options are accelerating faster at brokers such as E Trade Financial and TD Ameritrade than they are for the trading of individual equity shares, said Mac Sykes, an analyst at Gabelli & Co. Monthly stock trading volume for the NYSE Group, meanwhile, was 43 percent lower in 2017 than in 2007, according to NYSE data.
Instead of the day-traders of the 1990s dot-com craze or the house-flippers of the mid-2000s, small-scale investors say they are looking for cryptocurrencies such as bitcoin to deliver the outsized returns they no longer believe the stock market can deliver.
Layla Tabatabaie, an entrepreneur and advisor to tech startups who lives in New York, began investing in initial coin offerings, or ICOs, about a year and a half ago, she said. She now holds the majority of her portfolio in cryptocurrencies, which she sees as offering the possibility for greater gains.
“The way that I see crypto as being more favorable than stocks is it seems like there is more of an opportunity for retail investors to get in earlier,” she said. “Crypto now is taking the place of the way stocks used to behave 10 years ago, 15 years ago.”
Reporting by David Randall; Editing by Alden Bentley, Jennifer Ablan and James DalgleishOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-financial-deutsche-whistleblower/exclusive-deutsches-firing-of-top-trader-sparks-probe-idUSTRE75N0VK20110624
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Exclusive: Deutsche's firing of top trader sparks probe
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Exclusive: Deutsche's firing of top trader sparks probe
By Matthew Goldstein9 Min Read
NEW YORK (Reuters) - In the fall of 2009, Deutsche Bank quietly fired one of its top derivative traders in London after a colleague in New York complained about finding “substantial trading anomalies” in a multibillion dollar portfolio of high-risk credit default swaps managed by the German-based bank, Reuters has learned.
A Deutsche Bank logo is pictured in front of the Deutsche Bank headquarters in Frankfurt February 24, 2011. REUTERS/Ralph Orlowski
The bank dismissed Alex Bernand after a quick internal investigation prompted by the employee’s complaint led to the discovery of improper trading in one of Bernand’s personal brokerage accounts, according to documents seen by Reuters and interviews with people familiar with the situation.
The documents, part of a Sarbanes-Oxley whistleblower action filed against Deutsche in May 2010 by the employee in New York, also reveal that the Securities and Exchange Commission opened an inquiry last year into a related allegation that some of the assets in the derivatives portfolio overseen by Bernand may have been improperly valued in order to hide trading losses.
Deutsche bank spokeswoman Renee Calabro declined to comment on Bernand’s dismissal. But she said the allegation that some assets in the bank’s derivatives book had been improperly valued was investigated by the bank and is “wholly unfounded.”
The SEC investigation and Bernand’s October 2009 firing, neither of which has been previously reported, come as Deutsche is aggressively winding down the portion of its derivatives trading business that Bernand had overseen. Earlier this month, the bank reported in an investor presentation that its plan to unwind its “high-risk” credit correlation portfolio “is well ahead” of schedule. The bank first announced a plan to begin “de-risking” some of its derivatives trading desks in late 2008.
In January, Deutsche settled the whistleblower case by agreeing to pay $900,000 to trader Matthew Simpson and promoting him to managing director shortly before he voluntarily agreed to leave the bank in April. It was the largest Sarbanes-Oxley whistleblower settlement for a complaint filed in 2010. Simpson, who now works for Rochdale Securities in Stamford, Connecticut, did not return a phone call seeking comment.
UNFOUNDED ALLEGATION
“This complaint, which is over a year old, has been the subject of a thorough investigation, and we believe that any allegations about financial misreporting are wholly unfounded,” said Calabro, who declined to comment on the terms of the settlement with Simpson. “The bank is cooperating with the SEC on its review of the matter.”
An SEC spokesman declined to comment.
Bernand, who lives in France, also declined to comment. On his LinkedIn profile, Bernand describes himself as an “independent philanthropy professional.”
Simpson’s and Bernand’s names were redacted from the whistleblower documents seen by Reuters, but their identities were confirmed by two people familiar with the situation.
In its settlement agreement with Simpson, Deutsche also denied “any wrongdoing in connection with the matter.” In light of the settlement, the U.S. Department of Labor in February closed its investigation into Simpson’s claim that he had been retaliated against by some of his superiors for bringing the allegations of improper trading to the attention of the bank’s compliance department.
The firing of Bernand, a one-time rising star in the derivatives world, is something of an embarrassment for Deutsche. In 2006, the bank issued a press release to trumpet his hiring from Bank of America as its global head of credit correlation. At BofA, Bernand had pretty much built the Charlotte, North Carolina-based bank’s structured credit trading business from scratch.
Inside Deutsche, the portfolio that Bernand oversaw from London was called the “exotics book,” because many of the derivatives in the portfolio were tied to complex securities. At its peak, the portfolio was one of the largest on Wall Street with the assets underlying the trades valued in the tens of billions of dollars.
ILLUSORY PROFITS
The bank’s credit correlation desk specialized in using credit default swaps to make proprietary trades that were aimed at hedging some of the bank’s exposure to potentially risky corporate bonds, leveraged loans, currencies, indexes and commercial paper. Many of the trades put on by correlation traders involve synthetic collateralized debt obligations (CDOs), financial instruments that use credit default swaps to get exposure to various bonds and other assets.
Some have blamed credit default swaps -- a type of derivative that is supposed to provide a level of insurance against an underlying asset going bad -- with exacerbating the global financial crisis because they increase the level of risk on balance sheets of the world’s major banks. However, the synthetic CDOs traded by the correlation desk were not like the more popular variant of CDOs which were stuffed with subprime mortgage securities.
Janet Tavakoli, a Chicago-based derivatives consultant who has written several books on credit derivatives and structured products, said many bank managements did not fully appreciate the illusory nature of the trading profits being generated from derivatives correlation desks before the financial crisis. She said those profits often disappeared and turned into losses when the underlying assets turned south.
“The thing about correlation desks is that it will appear you are making a lot money from trades, but it is all money at risk,” said Tavakoli. “I call this kind of trading an invisible hedge fund.”
In an early 2010 regulatory filing, Deutsche attributed some of the rise in the bank’s value-at-risk, or VAR, at the end of 2009 to a “recalibration of parameters in the Group’s credit correlation business.”
On Wall Street, VAR is one metric used by a bank to estimate how much money it could conceivably lose in a day if all of its trading bets and hedges went awry. It’s an imperfect measurement, but one followed by most industry analysts.
A person familiar with Deutsche said the bank is winding down the credit correlation desk to both reduce its risk profile and better comply with the so-called Volcker Rule’s ban on proprietary trading in the United States.
The bank’s internal investigation into Simpson’s allegations was overseen by the big New York law firm Fried Frank.
The revelation that the SEC is investigating the valuations used for some of Deutsche’s derivatives portfolio comes at an awkward time. Over the past few months, the bank has taken some high-profile lumps for its role in contributing to the financial mess.
A Senate report released in April faulted Deutsche for continuing to churn out collateralized debt obligations and other securities backed by subprime mortgages even as the housing market in the United States was starting to crumble. The report from the Senate’s Permanent Subcommittee on Investigations said Deutsche aggressively marketed CDOs to its client, “despite the negative views of its most senior CDO trader” about the failing health of the housing market.
Just last month, federal prosecutors in New York filed a civil suit against Deutsche, claiming its MortgageIT subsidiary repeatedly lied about the quality of the mortgages it was issuing to obtain federal guarantees on those iffy home loans. The government seeks to recoup some $1 billion in losses it incurred from insuring the mortgages. Deutsche contends most of the problem loans were issued before the bank acquired MortgageIT in 2007.
Before filing his whistleblower complaint last May, Simpson had built a long track record at Deutsche. Over the dozen years he worked for the bank in New York, he held positions in finance, risk management and then trading. He joined the firm’s correlation trading group in 2008 and was responsible for trading derivatives tied to bonds and currencies.
In his whistleblower complaint, Simpson said when he reported his concerns about trading improprieties to Deutsche’s compliance department he “expressed concerns for future retaliations.”
Among the acts of retaliation that Simpson alleged were being passed over for a promotion in February 2010 and later “stripped” of all his trading and management responsibilities. Calabro said the bank denies Simpson’s claim of retaliation.
Reported by Matthew Goldstein; Editing by Michael Williams and Claudia ParsonsOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-financial-mortgages/luminent-thornburg-take-liquidity-steps-idUSN2027429520070820
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Capital One slashes jobs, mortgage industry swoons
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Capital One slashes jobs, mortgage industry swoons
By Dan Wilchins4 Min Read
NEW YORK (Reuters) - The U.S. mortgage industry took another battering on Monday, as Capital One Financial Corp said it will shut a lending unit it bought less than a year ago, while two mortgage companies took steps to bolster liquidity as losses piled up.
A sign reading 'Foreclosure For Sale' is posted on a house in the Boston suburb of Dedham, Massachusetts, March 15, 2007. Struggling mortgage investor Luminent Mortgage Capital Inc and home loan lender Thornburg Mortgage Inc took steps to bolster liquidity on Monday, but the companies signaled the trouble is not completely gone. REUTERS/Brian Snyder
Capital One, best known as a credit card issuer, said it will cut 1,900 jobs and take $860 million in charges as it closes its GreenPoint Mortgage unit, which it acquired last December when it paid $13.2 billion for North Fork Bancorp Inc.
McLean, Virginia-based Capital One plans to close GreenPoint’s headquarters in Novato, California as well as 31 offices in 19 states, and will stop offering mortgages through brokers.
It also cut its 2007 profit forecast to $5.00 per share from $7.15.
“GreenPoint has run into unforeseen challenges that are beyond its control,” Capital One Chief Executive Richard Fairbank said in a memo to employees, adding the closure “is the function of an unprecedented set of market circumstances.”
GreenPoint has specialized in “Alt-A” mortgages, which often go to people who do not qualify for “prime” mortgages or cannot fully document income or assets.
Capital One shares closed down 3 percent at $66.72 on the New York Stock Exchange. They fell an additional 2.4 percent to $65.08 in extended trading after Capital One’s announcement.
THORNBURG SELLS ASSETS
Separately, home loan provider Thornburg Mortgage Inc said it sold $20.5 billion of mortgage assets and reduced short-term borrowings by a like amount to reduce the risk of its losing access to short-term credit markets.
The sale amounted to more than 35 percent of its assets as of June 30. Thornburg estimated the net value of its assets, or book value, fell 13 percent to $12.40 per share last week alone.
Its stock closed down $1.54, or 10.2 percent, at $13.50, on the NYSE.
Meanwhile, mortgage investor Luminent Mortgage Capital Inc
said it would sell a 51 percent stake at a deep discount to Arco Capital Corp, a San Juan, Puerto Rico-based holding company, to shore up its finances.
With U.S. home values weakening and mortgage defaults rising, investors have balked at buying home loans in any form, and mortgage bonds have broadly dropped relative to Treasuries. That has left many lenders starved for cash or business.
Countrywide Financial Corp took out advertisements in many newspapers on Monday seeking to reassure customers their bank deposits were safe.
The largest U.S. mortgage lender has faced a flurry of withdrawals following the company’s unexpected August 16 announcement that it tapped an $11.5 billion bank credit line.
Difficulty in the mortgage market should come as no surprise and is not likely to disappear soon, said Marshall Front, chairman of Front Barnett Associates in Chicago.
“The mortgage industry grew disproportionately large and it’s going to have to shrink now,” Front said.
The U.S. Federal Reserve on Friday cut the rate at which it lends to banks, giving a lift to mortgage-backed securities and mortgage credit markets.
But the industry’s problems are far from over, traders said, and mortgage assets are still much weaker than at the start of 2006.
Private equity firm Lone Star Funds said on Monday it asked the Delaware Chancery Court to terminate its roughly $400 million purchase of Accredited Home Lenders Holding Co, saying the subprime lender had not met conditions required to close.
San Diego-based Accredited sued Lone Star on August 11 to force it to complete the $15.10-per-share buyout. The shares closed Monday at $6.44, down 4.6 percent on Nasdaq.
Meanwhile, Friedman, Billings, Ramsey Group Inc said it incurred a $57 million loss from the sale of $4.95 billion of mortgage securities.
Our Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-financial-psychology-idUSTRE48T4VC20080930
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Herd mentality rules in financial crisis
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Herd mentality rules in financial crisis
By Maggie Fox, Health, Science Editor4 Min Read
WASHINGTON (Reuters) - Herd mentality rules during a financial crisis because people are wired to follow the crowd when times are uncertain, experts say.
Traders gather at the Bank of America kiosk on the floor of the New York Stock Exchange in New York, September 24, 2008. REUTERS/Brendan McDermid
Brain and behavior studies clearly show that when information is scarce and threats seem imminent, people often stop listening to their own logic and look to see what others are doing.
“People are afraid, and the reason they are afraid is there tremendous uncertainty right now in the markets,” Gregory Berns, a neuroeconomist at Emory University in Atlanta who studies the biology of economic behavior, said in a telephone interview.
Berns puts people in magnetic resonance imaging or MRI scanners while he tests their responses to various scenarios, and studies patterns of their brain activation.
One clear pattern -- the brain’s “fear center” lights up when people are uncertain.
“When people are presented with a situation where they don’t have information or the information is ambiguous, we see activation of the amygdala and insula,” Berns said in a telephone interview.
And people begin to doubt their own judgment.
Bern’s team did an experiment in which they recruited actors and true volunteers. “One real subject went into a (MRI) scanner,” he said.
They were asked to do a simple task, assessing shapes.
“We had the group (of actors) tell them the wrong answer sometimes,” Berns said.
The volunteers began to change their answers to match what the group said. Perhaps they were merely overriding their own judgments for the sake of getting along, Berns said. But the scanner suggested another explanation.
RUNNING WITH THE HERD
“The group changes how you see the world in some way,” he said.
“Our brains are really wired to accept the group opinion of the world.”
In this case, running with the herd may not make good sense, said Paul Zak of the Center for Neuroeconomics Studies at Claremont Graduate University in California.
“There is this sort of herd mentality over-reaction,” Zak said in a telephone interview.
“One of my colleagues actually pulled his money out of Washington Mutual a few weeks ago. He ought to know better.”
The U.S. government has taken over mortgage finance companies Fannie Mae and Freddie Mac, Lehman Brothers Holdings Inc has gone bankrupt, giant savings and loan Washington Mutual failed and Bank of America Corp bought Merrill Lynch & Co Inc.
The U.S. House of Representatives rejected a $700 billion bailout on Monday, sending stock markets crashing globally.
Zak said the reactions are illogical. “I see no evidence that a depression is coming but it seems like people are behaving that way,” he said.
The reason is evolution, Zak said. “We are really hyper-social apes. We learn almost exclusively from each other,” he said. “Gossip is really important because it is another way that we learn socially. Separating out rumor from fact is difficult, particularly in these complex markets.”
Berns, whose book “Iconoclast” comes out this week and aims to teach people how to avoid this herd behavior, declined to dispense advice on weathering the current market.
“I am not a financial genius. I do know that when you see millions of people in the market essentially freaking out, that spills over into your brain and you get this impulse to do what everyone else is doing,” he said.
Zak knows what he is doing. “I am buying stocks,” he said.
Editing by Will Dunham and Jackie FrankOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-financial-summit-globalbodies/factbox-who-are-the-financial-global-governance-bodies-idUSTRE4AD6D420081114
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FACTBOX: Who are the financial global governance bodies?
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FACTBOX: Who are the financial global governance bodies?
By Reuters Staff3 Min Read
(Reuters) - World leaders were set to arrive in Washington on Friday for a summit that was called by U.S. President George W. Bush that is to be devoted partly to an overhaul of global financial institutions.
Here are some details on the global financial institutions:
* GROUP OF SEVEN (G7):
-- The G7 is a forum of the leading industrialized democracies: Germany, France, Britain, Italy, Japan, the United States and Canada. The first G7 annual summit in France in 1975 was called to settle a dispute over currencies, but meetings were soon expanded to discuss broad economic policy matters. Separately, G7 finance ministers and central bankers meet four times a year. In recent years, China and Russia have joined some segments of the G7 meetings.
* GROUP OF EIGHT (G8):
-- The G7 leaders meeting was expanded in 1998 to include Russia. Its agenda has widened from macroeconomic management to include international trade, relations with developing countries, energy, and terrorism.
* GROUP OF TWENTY (G20):
-- The Group of Twenty first met in Berlin in December 1999. It was created as a response to the Asian financial crisis of 1997-98, which exposed that emerging market nations were not adequately included in the core of global economic discussion and governance.
-- Its 19 members are - Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America. The European Union is also a member, represented by the rotating Council presidency and the European Central Bank. G20 finance ministers and central bank governors meet annually.
* THE INTERNATIONAL MONETARY FUND (IMF):
-- One of the two international financial institutions formed at the Bretton Woods conference in 1944, the IMF began operations in 1946. Its purpose is the surveillance of economic and financial developments, lending to countries with balance of payments difficulties, supporting policies aimed at correcting the underlying problems, and advice.
* THE WORLD BANK:
-- The second Bretton Woods institution, the World Bank officially began operations in June 1946. Its first loans were geared toward the post-war reconstruction of Western Europe. While it has played a major role in financing investments in infrastructure projects in developing countries, its primary mission is to work with developing countries to alleviate poverty.
* THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS):
-- The BIS is an international organization aimed at fostering international monetary and financial cooperation. It also serves as a bank for central banks.
-- Established in 1930, the BIS is the world’s oldest international financial organization. It describes itself as a forum to promote discussion and policy analysis among central banks and within the international financial community.
Sources: Reuters; IMF; World Bank; www.brettonwoodsproject.org; britannica.com; financialsense.com; G20; www.bis.org
Our Standards: The Thomson Reuters Trust Principles.
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97a68eb35e5002d192ab1f5239a641b3
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https://www.reuters.com/article/us-finearts-warhol/show-unveils-andy-warhols-catholic-abstract-side-idUSTRE65A43C20100611
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Show unveils Andy Warhol's Catholic, abstract side
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Show unveils Andy Warhol's Catholic, abstract side
By Walker Simon3 Min Read
NEW YORK (Reuters) - As a pop art pioneer, Andy Warhol blazed his way to fame with trademark Brillo soap pad boxes and silk-screens of Campbell’s Soup cans.
Andy Warhol's work "The Last Supper" from 1986 is seen in this undated handout photo. REUTERS/The Andy Warhol Foundation for the Visual Arts/Artists Rights Society/Handout
But a new museum exhibit shows pop art was just a seven-year phase for Warhol in the 1960s, before his 1980s plunge into abstract art and Christian imagery, particularly his versions of “The Last Supper.”
Flippant, brazen and flamboyant as an art world personality, Warhol long kept private his devout, lifelong Catholicism.
“Only his closest confidants knew he was a religious person and frequently went to Mass,” said Sharon Matt Atkins, coordinating curator of the Brooklyn Museum exhibit “Andy Warhol: The Last Decade,” which opens on June 18.
Little known is that Warhol attended church in the plush, Upper East Side of Manhattan, a world away from his famed downtown Factory studio complex, frequented by the eccentric and outlandish,
In his middle age, he began exploring religious themes in his art.
“After Warhol turned 50, he began a reassessment of his career,” Atkins said. “We also start to see Warhol reflecting on the inevitability of his own death.”
Slideshow ( 2 images )
In the year before he died -- at age 58 in 1987 -- Warhol created more than 100 works that were offshoots of Leonardo da Vinci’s “The Last Supper” fresco in Milan.
“For an artist obsessed with death ... the Lord’s final repast functioned as the consummate disaster painting,” Joseph Ketner said in the exhibition catalog,
“The image of Christ and disciples obsessed him,” added Ketner, who curated the show for the Milwaukee Art Museum, where the exhibition was first on view.
Three of the show’s Last Supper works are monumental, ranging between 25 feet to 35 feet in length, one of which is bathed in canary yellow.
Another piece juxtaposes a quartet of Christs with a trio of motorcycles, a swooping red eagle and a $6.99 price tag, emblematic of Warhol’s outward irreverence but also revealing of his inner spirituality, according to Atkins.
The largest canvas has 112 portraits of Christ, recalling repeated icons in Byzantine art, said Atkins.
Warhol’s parents, immigrants from Slovakia, raised him as a Byzantine Catholic, a denomination which had a church in the artist’s native Pittsburgh.
Warhol’s turning to abstract art, also after age 50, dominates the exhibition’s first section. The influence of Jackson Pollock’s jumbled drip paintings is clear in Warhol’s series “Yarn.”
Like a cat’s cradle, it features intertwined hoops and loops, in a scramble of colors such as lemon-yellow, asparagus-green and coral pink.
The Brooklyn Museum exhibition includes videos from Warhol’s TV series including his MTV program “Andy Warhol’s Fifteen Minutes,” Atkins said. Warhol predicted in the 1960s that in the future everyone will be famous for 15 minutes.
But the show’s program excerpt lasts only 15 seconds.
Reporting by Walker Simon; Editing by Patricia ReaneyOur Standards: The Thomson Reuters Trust Principles.
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fb9c2a5632d1b8bb3c625a5a80b00f4e
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https://www.reuters.com/article/us-finland-art-bear-idUSKBN1512VC?feedType=RSS&feedName=artsNews
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Juuso the bear makes artistic debut at Finnish gallery
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Juuso the bear makes artistic debut at Finnish gallery
By Reuters Staff2 Min Read
HELSINKI (Reuters) - Artists usually like to attend the opening of their exhibitions but the painter of the works that went on display at a gallery in Helsinki on Tuesday preferred to carry on hibernating.
The artist behind the exhibition entitled “Strong and soft touches” is a 423-kilogram (930 pound) brown bear named Juuso who uses his body, especially his paws, as paintbrushes.
“We just leave paint for him, some plywood and paper ... If we ask him to do it, he doesn’t do anything. He does all the work in his own time, when he’s alone, sitting and moving his legs on the paper,” said Pasi Jantti, one of his keepers.
Juuso, who is 17 years old, favors blue and red, the keeper said, adding that the paints used posed no health risk to the bear.
His keepers discovered Juuso’s artistic bent one day while painting some facilities at Kuusamo animal center in northern Finland where he has been living since being orphaned as a cub.
“Juuso got some paint in his paws and started to make marks with them. We noticed that he liked it,” Jantti said.
The center raised about 8,000 euros ($8,500) by selling 15 paintings produced by Juuso. The exhibition now opening at the Rupla gallery in Helsinki features 11 pieces of original work and some prints and are priced from 50 to 4,000 euros.
Some of the paintings still feature bits of Juuso’s fur. Funds raised from the exhibition will be used to make a documentary about bears.
($1 = 0.9354 euros)
Reporting by Jussi Rosendahl and Attila Cser; Editing by Gareth JonesOur Standards: The Thomson Reuters Trust Principles.
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04ed6dc79a2649ee324d29197f6d5412
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https://www.reuters.com/article/us-finland-coal-biomass-idUSKCN1SY184
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After coal, forest-rich Finland will need to import biomass to keep warm
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After coal, forest-rich Finland will need to import biomass to keep warm
By Lefteris Karagiannopoulos4 Min Read
OSLO (Reuters) - Finland faces having to import biomass because, despite being Europe’s most densely forested country, it will be unable to meet an expected 70% rise in demand for the fuel after it phases out coal.
FILE PHOTO: Piles of logs await processing at the UPM paper mill in Kajaani, Finland, July 21, 2008. REUTERS/Bob Strong/File Photo
Finland approved in February banning the use of coal in energy production by May 2029, which means utilities will have to find alternatives to keep Finns warm as coal currently accounts for around 20% of the energy used for household heating.
As there are limited plans to use more gas to produce heat in Finland, and other sources such as solar and geothermal energy are not yet commercially viable, using more biomass is seen as the most economic way of meeting the country’s future energy needs.
Biomass includes forest wood, timber logging residues, and industry by-products such as wood chips, black liquor and other bio-waste.
Estimates shown to Reuters by Poyry consultancy - which advises the government on energy, industry and infrastructure needs - calculate that Finland will need 64 terawatt hours (TWh) worth of biomass in 2030 just for energy production, up from 38 TWh currently.
Domestic supply of biomass on the other hand, is forecast to grow by only 8 TWh between now and 2030, according to Poyry.
As a result, Poyry says the country will have to import biomass as well as improve forest management and ensure greater utilization of harvest residues.
Finland’s largest energy lobby group Energia also projects large increases in the use of biomass in coming years.
“It’s slightly awkward that Finland would run an energy policy that we will make us a net importer of biomass. We are a forest country,” said its head Jukka Leskela.
CHEAPER TO IMPORT
Forests cover three quarters of Finland’s land, but the country’s limited tree harvest quota is mostly reserved for the pulp industry and the government would be unable to add much more supply for energy use.
“The pressure is to limit the use of (domestic) wood... Ιt is normally used in the regions where there is a lot of wood and fewer people but now we are talking about towns with very little forest and many people. It is evident that we need imports,” said Riku Huttunen, head of Finland’s energy department, which is part of the ministry of economic affairs and employment.
The logistics of moving biomass from northern Finland was also a limitation, he said, as shipping from neighboring countries was cheaper for utilities.
Such imports could come from other countries around the Baltic coast, including Russia, from where Finland is already sourcing some of its biomass, said Leskela of Energia.
That is despite pressure from the European Union on its member states to reduce their energy reliance on Russia.
Energia’s estimates show biomass will account for nearly 60 percent of the fuel mix in Finland’s combined heat and power (CHP) plants in 2030, up from less than 30 percent currently.
Finland has seven CHP plants in operation that use coal either as primary or stand-by fuel for residential or industrial purposes. Owners include power giant Fortum, Pohjolan Voima and Helen, among others.
In addition to biomass, the country will also make greater use of heat pumps, excess heat from data centers as well as heat storage solutions, industry executives said.
Editing by Terje Solsvik and Susan FentonOur Standards: The Thomson Reuters Trust Principles.
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79a2ecac7d20464d19771a84c19a895f
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https://www.reuters.com/article/us-finland-games-hatch/finlands-hatch-plans-netflix-style-streaming-for-mobile-games-idUSKBN1H22DE?feedType=RSS&feedName=technologyNews
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Finland's Hatch plans Netflix-style streaming for mobile games
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Finland's Hatch plans Netflix-style streaming for mobile games
By Jussi Rosendahl4 Min Read
HELSINKI (Reuters) - Hatch Entertainment, a spin-off from the game maker behind the Angry Birds franchise, is testing streaming access to mobile games the way Netflix does for movies or Spotify for music.
Hatch CEO Juhani Honkala presents the company's mobile game streaming service at his office in Espoo, Finland March 23, 2018. REUTERS/Jussi Rosendahl
The Finnish company that grew out of Rovio believes the gaming industry is ready for flat-fee monthly offers to give players a greater choice of titles and replace the irritating free-at-first, pay-later model that has dominated this decade.
“This is a new way to play mobile games, and at the moment we don’t see any direct competition,” Hatch Chief Executive and Rovio veteran Juhani Honkala told Reuters.
The streaming model faces scepticism from an industry that currently makes its money per game, charging fees for props or upgrades within games.
“High-quality content is more likely to attract new players than positioning around innovative streaming technology,” said Jack Kent, an analyst at IHS Technology.
Spotify makes its debut on the New York stock market next week in a listing that could value the business at $20 billion, but it took the company years to persuade music publishers of the attraction of streaming services over single music purchases.
More than 100 game developers and publishers are ready to give the new business model a try, including SEGA, Square Enix and Bandai Namco, Honkala said, though the beta version has only 10,000 user downloads so far in the Google Play store.
Slideshow ( 2 images )
INDUSTRY BACKING
Hatch’s platform, which runs on Android phones and is being tested in 18 European countries, has also racked up support from U.S. wireless chip giant Qualcomm and China’s Huawei, the world’s third-largest smartphone maker.
“We have very strong industry backing,” Honkala said.
Rovio is stepping up its investment in Hatch, looking to secure a new revenue stream after a dramatic profit warning sent its share price tumbling by 50 percent last month.
Rovio owns 80 percent of Hatch, which operates as an independent subsidiary.
Smartphone-based games are currently dominated by a free-to-play model that makes money through in-app purchases that help players to progress.
The model rewards games that have become mass-market success stories but makes life challenging for lower-ranked titles and smaller publishers who have trouble getting discovered as players stick to games they know and have invested in.
Rovio itself has struggled in recent years to repeat the success of Angry Birds and has had trouble forecasting future revenue because of heavy marketing costs and increased competition.
Hatch now offers 100 games on its platform and it has signed up about 200 more, including SEGA’s Sonic the Hedgehog games, Crazy Taxi and Virtua Tennis. Honkala said the service will pay 70 percent of its revenues to the publishers of its games.
The model would also allow more room for educational or strategy games that have longer narratives, he said, adding that running the service from the cloud rather than locally on the phone should also improve the experience for multiplayer games.
The company does not have a target schedule for formal launch but Honkala said it could happen this year. He declined to say how much the subscription price would be.
Reporting by Jussi Rosendahl; Editing by Eric Auchard and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
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3c9f007c81570ee505d35836cbb60581
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https://www.reuters.com/article/us-finland-government/finlands-government-resigns-after-healthcare-reform-fails-idUSKCN1QP0R6
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Finland's cabinet quits over failure to deliver healthcare reform
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Finland's cabinet quits over failure to deliver healthcare reform
By Anne Kauranen4 Min Read
HELSINKI (Reuters) - Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.
Healthcare systems across much of the developed world have come under increasing stress in recent years as treatment costs soar and people live longer, meaning fewer workers are supporting more pensioners.
Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.
“The picture I’ve got over the last few days from parliament forces me to draw conclusions. There is no way ahead. I am hugely disappointed,” Centre Party Prime Minister Juha Sipila told reporters at a news conference.
“We need reforms, there is no other way for Finland to succeed.”
Parliament’s constitutional committee said the reform package was unconstitutional and required significant changes the government did not have time to implement before the scheduled elections.
President Sauli Niinisto accepted Sipila’s resignation but asked his government of his Centre party and the National Coalition Party to continue in a caretaker capacity until a new cabinet has been appointed.
Related CoverageFinland's outgoing PM: 'hugely disappointed' at cabinet fall
“My government works on a ‘result or out’ principle... one has to carry responsibility in politics,” Sipila said, adding it was his personal decision to resign.
The government had aimed to dramatically slow the increase in healthcare spending over the next decade, reducing the budget to 18.3 billion euros in 2029 against an estimate of 21.3 billion.
NORDIC PROBLEM
The reforms expected to generate savings by creating 18 new regions to organize healthcare services instead of the 200 entities that are currently responsible. Critics said the scale of the projected savings was unrealistic.
Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.
Denmark will gradually increase the retirement age to 73 - the highest in the world - while cutting taxes and unemployment benefits to encourage people to work more.
Slideshow ( 7 images )
The problem has been particularly acute in Finland where the financial crisis of 2008-9 magnified the effects of demographic changes such as a rapidly declining birth rate.
Several Finnish governments have tried to push through healthcare reform in different forms over the past 12 years -- all have failed.
Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.
Slideshow ( 7 images )
With election so close, analysts said the effect of Sipila’s resignation would be minor.
“Since elections were already set for 14 April, the resignation of the government is not a big deal at all at this point. Still, it does create some ugly headlines,” Nordea’s chief analyst Jan von Gerich wrote on Twitter.
The latest poll by national broadcaster YLE puts the Social Democrats on 21.3 percent ahead of the National Coalition Party on 16.2 percent and the Centre on 14.1 percent.
In the 2015 general election Sipila’s Centre party topped the poll with 21.2 percent of the vote.
At 9.5 percent of GDP, Finland ranked ninth among EU countries in terms of how much it spent on healthcare in 2016, relative to the size of its economy, according to Eurostat figures. Spending has declined over recent years as a result of sluggish growth.
France topped the rankings at 11.5 percent of GDP with Germany second and Sweden third. Denmark was fifth. Non-EU member Norway would rank fourth.
Reporting by Anne Kauranen, Tarmo Virki in Tallinn, Terje Solsvik in Oslo; writing by Stine Jacobsen and Simon Johnson; editing by Larry King and Jon BoyleOur Standards: The Thomson Reuters Trust Principles.
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11eb72f79189676f7905df737e91cd72
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https://www.reuters.com/article/us-finland-government/finlands-government-resigns-as-pm-loses-trust-of-coalition-partner-idUSKBN1Y70PG
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Finland's PM resigns after losing trust of coalition partner
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Finland's PM resigns after losing trust of coalition partner
By Anne Kauranen, Tarmo Virki3 Min Read
HELSINKI (Reuters) - Finnish Prime Minister Antti Rinne resigned on Tuesday after a member of the ruling coalition said it had lost confidence in him following a series of disruptive strikes.
Slideshow ( 10 images )
The Center Party asked Rinne to step down after a more than two-week strike at Finland’s state postal service, Posti, spread to the national airline, Finnair, and to other industries before being settled last week.
Center Party chairwoman Katri Kulmuni questioned Rinne’s role in handling the strike on Monday but said she wanted the same five-member coalition to continue under an unspecified new prime minister.
President Sauli Niinisto accepted Rinne’s resignation and asked the centre-left cabinet to continue in a caretaker role pending the formation of a new one.
“Next we will likely have fast government formation talks, and likely with the same coalition,” Rinne told reporters.
The timing of the crisis is awkward. Finland holds the rotating presidency of the European Union until the end of the year, playing a central role in efforts to hammer out a new budget for the bloc.
Social Democrat Minister of Transportation and Communications Sanna Marin, 34, is seen as a frontrunner to replace Rinne.
“I won’t dodge the responsibility,” Marin told reporters at Helsinki airport after flying back from Brussels due to the crisis.
“At 34 she’d be the youngest prime minister ever,” Helsinki University political scientist Johanna Vuorelma.
Another candidate to lead the government would be Antti Lindtman, SDP group leader and party chairman, who told reporters he was also ready become prime minister.
If all five coalition partners agree to be on board, it is customary that the election winner, in this case the Social Democrats, are given the first attempt to win approval for a new prime minister and form a government.
The Center Party and SDP are both trailing in the polls and could lose ground to the nationalist Finns Party, which came a close second to Rinne’s Social Democrats in April’s election.
“It is very likely this same government coalition will continue,” Tampere University political scientist Ilkka Ruostetsaari said.
Reporting by Anne Kauranen and Tarmo Virki; additional reporting by Colm Fulton in Stockholm; writing by Simon Johnson and Niklas Pollard; editing by Catherine Evans, Gareth Jones and Philippa FletcherOur Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/us-finland-nato-report-idUSKCN0XQ1LQ
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Finnish NATO membership would lead to crisis with Russia: government report
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Finnish NATO membership would lead to crisis with Russia: government report
By Reuters Staff3 Min Read
HELSINKI (Reuters) - If Finland joined NATO it would lead to a serious crisis with neighboring Russia, a report commissioned by the Finnish government said on Friday.
Juha Sipila of the Centre Party is pictured after he was voted to become the next prime minister at the parliament in Helsinki May 28, 2015. Vesa Moilanen/Lehtikuva via REUTERS/File Photo
Membership of the military alliance would strengthen Finland’s security but trigger a harsh reaction from the Kremlin, affecting trade between the countries, according to the report prepared for Prime Minister Juha Sipila’s center-right government.
Militarily-neutral Finland shares a 1,340 km-long border and difficult history with Russia, its former ruler.
The report gave no direct recommendation on whether Finland should seek membership, but said a joint Finnish-Swedish application would be a better strategic option than either Nordic country joining the alliance alone.
“This is a question of grand strategy,” Finnish Prime Minister Sipila told reporters on Friday.
“Small nations do not often change their basic foreign policy guidelines,” he said, adding that leeway was needed in case the security situation changed.
Only 22 percent of Finns support joining NATO, while 55 percent are opposed, a recent poll by public broadcaster YLE showed.
Finnish membership of NATO would double the length of the border between the alliance and Russia and increase the NATO presence in the Baltic Sea.
But without Sweden, Finland would be an isolated outpost which NATO would have difficulty defending, the report said.
Sipila said the governments of Finland and Sweden had promised not to “surprise each other” on the issue.
Nordic countries have stepped up military cooperation since Russia’s annexation of Crimea in 2014.
This month two Russian warplanes flew simulated attack passes near a U.S. destroyer in international waters in the Baltic, according to the U.S. military.
On Friday, Russian Foreign Minister Sergei Lavrov said in an interview that if Sweden joined NATO, Moscow would take “necessary military-technical measures”.
Sweden’s government has said it will not join the alliance, but four opposition parties want membership.
Finland won independence during Russia’s revolution of 1917 but nearly lost it fighting the Soviet Union in World War Two.
It kept close economic and political ties with the West during the Cold War but avoided confrontation with Moscow.
Reporting by Tuomas Forsell and Jussi Rosendahl; Additional reporting by Simon Johnson in Stockholm; Editing by Andrew RocheOur Standards: The Thomson Reuters Trust Principles.
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894fb9b68d8d55316e02eee058cab49b
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https://www.reuters.com/article/us-finland-russia-summit-blast/putin-says-deadly-military-accident-occurred-during-weapons-systems-test-idUSKCN1VB1YC
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Putin says deadly military accident occurred during weapons systems test
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Putin says deadly military accident occurred during weapons systems test
By Olesya Astakhova, Anne Kauranen2 Min Read
Russian President Vladimir Putin speaks during a joint news conference with Finnish President Sauli Niinisto in the Presidental Palace in Helsinki, Finland, August 21, 2019. Markku Ulander/Lehtikuva/via REUTERS
HELSINKI (Reuters) - Russian President Vladimir Putin said on Wednesday that a deadly blast at a military site in northern Russia earlier this month had taken place during the testing of what he called promising new weapons systems.
Putin said that Moscow could not reveal everything about the blast because of its military nature, but that information exchanges about such accidents should be improved.
“When it comes to activities of a military nature, there are certain restrictions on access to information,” Putin told a news conference in Helsinki, standing alongside Finnish President Sauli Niinisto.
He did not reveal which weapons system was being tested at the time of the blast on Aug. 8.
“This is work in the military field, work on promising weapons systems. We are not hiding this,” Putin said. “We must think of our own security.”
Russia’s state nuclear agency said this month that five of its staff members were killed and three others injured in a blast involving “isotope power sources” that took place during a rocket test on a sea platform. Two Russian military personnel were also reported to have been killed.
Putin said this week that there was no risk of increased radiation levels following the blast and that all necessary preventive measures were being taken.
Reporting by Olesya Astakhova and Anne Kauranen; Writing by Gabrielle Tétrault-Farber; Editing by Andrew OsbornOur Standards: The Thomson Reuters Trust Principles.
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25773423265c6055796a9b6070dc1b10
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https://www.reuters.com/article/us-finland-russia-summit-missiles/putin-says-u-s-is-able-to-deploy-new-cruise-missile-in-europe-idUSKCN1VB1Y7
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Putin says U.S. is able to deploy new cruise missile in Europe
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Putin says U.S. is able to deploy new cruise missile in Europe
By Olesya Astakhova, Anne Kauranen2 Min Read
Russian President Vladimir Putin attends a joint news conference with Finnish President Sauli Niinisto in the Presidental Palace in Helsinki, Finland, August 21, 2019. Markku Ulander/Lehtikuva/via REUTERS
HELSINKI (Reuters) - Russian President Vladimir Putin said on Wednesday that the United States was now in a position to deploy a new land-based cruise missile in Romania and Poland, a scenario he considered a threat that Moscow would need to respond to.
The Pentagon said on Monday it had tested a conventionally-configured cruise missile that hit its target after more than 500 km (310 miles) of flight, its first such test since the demise of a landmark nuclear pact this month.
The test followed the U.S. formally withdrawing from the Cold War-era Intermediate-Range Nuclear Forces Treaty (INF) on Aug. 2 after accusing Moscow of violating it, a charge dismissed by the Kremlin.
Putin, speaking during a visit to Helsinki, said that Washington could potentially now use existing launch systems in Romania and Poland to fire the new missile, meaning it could deploy it easily and swiftly if it chose to.
“Launches of this missile can be carried out from (launch) systems already located in Romania and Poland. All you have to do is change the software. And I don’t think our American partners will inform even the European Union about this. This entails new threats for us that we must react to,” Putin said.
The test would have been banned under the INF, which prohibited land-based missiles with a range of between 310 and 3,400 miles, reducing the ability of both countries to launch a nuclear strike at short notice.
The United States has said it has no imminent plans to deploy new land-based missiles in Europe.
Putin was speaking to reporters following talks with his Finnish counterpart Sauli Niinistö.
The Russian leader used a joint news conference to defend the authorities’ response to a series of political protests in Moscow and to reassure people that an accident at a military testing site in northern Russia this month did not pose any threat to neighboring countries or people living nearby.
Writing by Tom Balmforth; Editing by Andrew OsbornOur Standards: The Thomson Reuters Trust Principles.
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a1209b9e76517254c4da7abe7645b226
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https://www.reuters.com/article/us-finland-russia/finland-suspects-russian-aircraft-violated-airspace-idUSKBN1DZ16S
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Finland suspects Russian aircraft violated airspace
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Finland suspects Russian aircraft violated airspace
By Reuters Staff2 Min Read
HELSINKI/MOSCOW (Reuters) - Finland’s defense ministry said on Tuesday it suspected a Russian aircraft had violated Finnish airspace over the Baltic Sea earlier in the day.
The ministry said a Tupolev TU-154, a Russian passenger and transport plane, had been detected south of Porvoo and that the border guard was investigating the matter.
A ministry spokesman declined to say whether Finland had scrambled jets to identify the plane. The Russian defense ministry was not immediately available to comment.
Finland, which is preparing to celebrate 100 years of independence on Wednesday, has accused Moscow of several airspace violations since the Ukraine crisis began in 2014.
Last year, Estonia and Finland blamed Russia for entering their airspace as Finland was signing a defense pact with the United States. In a separate incident, two Russian warplanes flew simulated attack passes near a U.S. guided missile destroyer in the Baltic Sea.
Finland was part of the Russian Empire and won independence during the 1917 Russian revolution, then nearly lost it fighting the Soviet Union in World War Two. It is now an EU member state which does not belong to NATO military alliance.
Reporting by Jussi Rosendahl and Tuomas Forsell in Helsinki, Margarita Popova in Moscow, editing by Catherine Evans and Larry KingOur Standards: The Thomson Reuters Trust Principles.
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a7493ae6d0eb0cc62dad459907bc6d27
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https://www.reuters.com/article/us-finland-shooting-idUSKBN13T0F6?il=0
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Local official, two journalists shot and killed in Finnish town
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Local official, two journalists shot and killed in Finnish town
By Jussi Rosendahl2 Min Read
HELSINKI (Reuters) - A local politician and two journalists, all of them women, were shot dead with a rifle in front of a restaurant in the Finnish town of Imatra, police said on Sunday.
The Southeastern Finland Police Department said it suspected a 23-year-old local man drove to the scene around midnight on Saturday, took a hunting rifle from the trunk of his car and fired four or five shots.
The suspect, who has criminal record of violent offences, was detained at the scene. The motive for the killings remained unclear.
“It looks like the victims were chosen at random,” Detective Inspector Saku Tielinen told a news conference, adding that a political motive seemed unlikely.
Victim Tiina Wilen-Jappinen was chairwoman of Imatra City Council. The other two women were journalists from a local newspaper, the police said.
Slideshow ( 2 images )
“She (Wilen-Jappinen) was liked, nice and bright person. This is truly shocking,” Mayor Pertti Lintunen told the newspaper Helsingin Sanomat’s online version.
The gun was a permitted hunting rifle but it did not belong to the suspect, police said.
Finland shares an 833-mile (1,340 km) border with Russia and has sought exceptions from proposed European Union restrictions on firearms, citing defense needs.
Around 28,000 people live in Imatra.
“Finland is one of the safest countries in the world, but unfortunately acts like these are still possible even here,” Prime Minister Juha Sipila said in a statement.
Editing by Larry KingOur Standards: The Thomson Reuters Trust Principles.
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4d767bcc913f951a3e11bf6af07baeb6
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https://www.reuters.com/article/us-fintech-affirm/high-tech-lenders-target-the-decades-old-store-credit-card-idUKKBN1EF2F7?edition-redirect=uk
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High-tech lenders target the decades-old store credit card
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High-tech lenders target the decades-old store credit card
By Heather Somerville6 Min Read
SAN FRANCISCO (Reuters) - The once-hot online lending industry has been battered by scandal and losses since last year, but one of the oldest forms of lending - store credit - is increasingly attracting tech companies aiming to supplant a retailer’s credit card.
Max Levchin, founder and chief executive of Affirm, a San Francisco startup that offers loans to shoppers making online purchases such as a sofa or mattress, poses in this handout photo received on December 14, 2017. Courtesy of Affirm/Handout via REUTERS
One such lender, San Francisco startup Affirm, is attracting investment and large customers by using a new approach to underwriting that allows it to approve more borrowers than traditional store credit cards.
Max Levchin, Affirm’s founder who also co-founded one of the earliest digital payments companies, PayPal, boasts that Affirm approves 126 percent more borrowers than Synchrony Financial, the largest issuer of private-label credit cards.
Merchants have enjoyed the boost in sales. Affirm recently finalized a deal to become the exclusive financing option for customers of mobile phone company Motorola, replacing Motorola’s private-label credit card.
As of August, the most recent data available from a case study by the companies, purchases made with Affirm’s loans represented 19 percent of all Motorola’s sales.
“The point-of-sale market is monstrous,” said Peter Renton, an independent industry analyst who hosts an online lending conference called LendIt. “But it’s been really low-tech.”
Companies like Affirm are using smartphone apps, online messaging with borrowers and instantaneous approvals, removing the paperwork from retail lending.
Synchrony did not respond to requests for comment. Reuters was not able to independently verify Affirm’s claim of loan approval rates.
Some industry watchers worry about the fallout of risky lending. Affirm, which is not profitable, has not yet been tested by a downturn in the economy.
“Long history will tell you, you have to be skeptical of someone saying they’ve cracked the code on underwriting,” said Todd Baker, a senior fellow at Harvard Kennedy School and a consultant for financial services companies. “You really won’t know until the credit cycle turns.”
Long before the internet, stores such as Sears offered credit cards, and some built profitable financing arms. Private-label cards can provide stores with valuable consumer data and lower processing fees than general-purpose credit cards.
The total balance on store cards roughly doubled between 2007 and 2015 in the United States to $84 billion, according to the Consumer Financial Protection Bureau. But while people are buying more on credit, fewer people are opening new store accounts, with the number of accounts down from 2007.
The average in-store credit card has a 26.38-percent interest rate, with jeweler Zales and department store Big Lots Inc topping the list at 30 percent, according to a survey this year by CreditCards.com.
‘MORE APPROVALS AND MORE SALES’
That has left an opening for tech companies touting what they claim to be more transparent, economical and convenient financial products in one of the few bright spots in online lending.
Other parts of the industry, particularly marketplace lending, have suffered from controversy and poor performance. For instance, LendingClub Corp’s CEO was forced to resign last year after a scandal over its loan-selling practices, and the company’s market capitalization has collapsed from more than $9 billion in 2014 to about $1.7 billion.
Competing with Affirm is Klarna, founded in Sweden in 2005, which offers deferred payments and installment loans at more than 70,000 retailers, with merchants setting their own interest rates. Jim Lofgren, CEO for North America, said Klarna has been profitable for more than a decade.
San Francisco payments company Square Inc in June started allowing customers of selected merchants to take out loans up to $10,000 to pay back over three months to a year.
Affirm offers installment loans to shoppers at nearly 1,300 online retailers, financing purchases such as a new couch or mattress. The loans average $750 and generally have a pay-back period of three months to a year. There are no late fees but the average annual interest rate is still high, 19 percent.
Investors’ familiarity with Levchin from his days at PayPal Holdings Inc has helped Affirm raise about $450 million in equity funding, including a $200-million round at a $1.75 billion valuation last week. [nL1N1OB13H]
Affirm has issued loans this year totaling more than $1 billion. The company, which is private, declined to provide its default or delinquency rates, or say how often it rejects applicants.
By comparison, Synchrony had more than $76 billion in purchases on its retail credit cards in the first three quarters this year and earned $9 billion on interest and fees, according to the company’s financial earnings.
Levchin said Affirm is able to approve more loans than traditional private-label card providers because it looks at personal data, such as the borrower’s debt-to-income ratio and bank account details, rather than simply relying on the borrower’s credit score or credit bureau history.
This allows Levchin to lend to 20-somethings who maxed out credit cards in college and have a low credit score but a well-paying job to pay back the loan, he said.
“We do bring more approvals and more sales, but we don’t do this because we are more willing to take risks,” he said.
Reporting by Heather Somerville; Editing by Jonathan Weber and Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
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4425ac61b7d131997b47138f16d0c0c9
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https://www.reuters.com/article/us-fintech-revolut-funding/revolut-becomes-britains-first-digital-bank-unicorn-idUKKBN1HX0MZ?edition-redirect=uk
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Revolut becomes Britain's first digital bank unicorn
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Revolut becomes Britain's first digital bank unicorn
By Emma Rumney3 Min Read
LONDON (Reuters) - Financial technology firm Revolut said on Thursday its valuation had jumped by five times in a year to $1.7 billion at its most recent funding round, making it the first of Britain’s digital-only banks to reach unicorn status.
FILE PHOTO: A view of the London skyline shows the City of London financial district, seen from St Paul's Cathedral in London, Britain February 25, 2017. REUTERS/Neil Hall/File Photo
Revolut, which is in the process of securing a banking license and currently offers its nearly two million users a pre-paid card, app and cheap foreign exchange, said it had raised $250 million in its third funding round, well above the $66 million it raised last July.
The round was led by Hong Kong-based venture capital firm DST Global, alongside other new and existing investors including Index Ventures and Ribbit Capital.
Revolut, one of a number of app-only banks that have sprung up in Europe in recent years, said it will spend the funds on worldwide expansion starting in the United States, Canada, Hong Kong and Australia in 2018 and on more than doubling its current headcount from 350 to 800 by the end of the year.
Like its peers, it hopes to challenge traditional lenders by offering increasingly tech-savvy consumers quick and easy digital money management tools, cut-price fees and a “marketplace” where users can shop around for products from various providers.
It has stormed ahead of rivals in terms of user numbers and investor backing, dwarfing the valuation of its closest British rival Monzo, which is valued at 280 million pounds ($390.29 million) and is yet to break 1 million users.
“Our focus, since we launched, has been to do everything completely opposite to traditional banks,” said Revolut founder and CEO Nikolay Storonsky.
“Banking has historically avoided disruptions by technology, but that is all about to change on a big scale.”
Fintech companies have enjoyed growing popularity amid demand for more digital and personalized services, threatening some of the key revenue streams for big banks.
They are yet to steal significant numbers of customers or income from their established rivals, but are set to benefit from a further boost in the coming years thanks to changes to regulations aimed at stimulating competition in financial services.
Revolut, which makes money from paid-for premium and business accounts, said it was adding between 6,000 and 8,000 new customers everyday. It became the first digital-only bank to break even on a monthly basis earlier this year.
It wants to acquire 100 million users in the next five years.
($1 = 0.7174 pounds)
Reporting by Emma Rumney, Editing by William MacleanOur Standards: The Thomson Reuters Trust Principles.
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240d5af16268c0c378610bd517545070
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https://www.reuters.com/article/us-fintech-revolut/fintech-revolut-britains-first-digital-bank-to-break-even-idUKKCN1GA021?edition-redirect=uk
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Fintech Revolut Britain's first digital bank to break even
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Fintech Revolut Britain's first digital bank to break even
By Emma Rumney3 Min Read
LONDON (Reuters) - Financial technology firm Revolut has become the first of a new breed of digital banks in Britain to break even on a monthly basis after a swelling user base and a suite of new products helped it bolster revenues in December.
Revolut, which has gained popularity with users for cheap and easy foreign exchange and is in the process of securing a banking license, now has 1.5 million users across Europe.
The firm is one of a number of digital banks that have sprung up in Britain in the past few years, offering slick apps, cut-price fees and a “marketplace” where users can shop around for products from a variety of providers.
Some have seen significant user growth since, but all are loss-making.
Revolut founder Nikolay Storonsky told Reuters that December’s result was driven by strong user growth and uptake of its products -- trends that had continued into 2018.
“In January we had an even stronger month...and again we are up 20-25 percent on revenues compared to December,” he said.
The firm’s closest peers including Monzo, Starling Bank and Tandem, which all have British banking licenses, told Reuters they had not yet seen a month without losses.
Another app-only bank, Atom, which has a different business model, also said it had not broken even yet. Germany’s digital bank N26, which has expanded across Europe, declined to disclose details on its financials.
Unlike its rivals, Revolut offers paid-for premium and business accounts, that have proven lucrative for the start-up.
It is also the only British digital bank to operate across Europe so far. Strong growth in countries like France, Germany and Switzerland and the Nordic region helped drive its user base up by 50 percent in the last two months. Expansion plans are also underway in India, Brazil, South Africa and the UAE.
Revolut is in the process of securing a banking license in Lithuania, which it then plans to passport elsewhere in Europe.
It already offers device and travel insurance through its marketplace, two of the new products that helped grow users and the firm’s monthly transaction volume to $1.5 billion - a 700 percent increase in the past 12 months.
Another was the ability to buy, hold and sell cryptocurrencies within the Revolut app.
Storonsky said there had been strong demand for this from customers since the capability launched, although this fell back a bit when the value of Bitcoin and other digital currencies dropped.
Reporting by Emma Rumney, Editing by Angus MacSwanOur Standards: The Thomson Reuters Trust Principles.
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a0b827a99dc6e67de3b3340c08d01f21
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https://www.reuters.com/article/us-fireeye-cyber/us-cybersecurity-firm-fireeye-discloses-breach-theft-of-hacking-tools-idUSKBN28I31E
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U.S. cybersecurity firm FireEye discloses breach, theft of hacking tools
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U.S. cybersecurity firm FireEye discloses breach, theft of hacking tools
By Christopher Bing, Joseph Menn5 Min Read
(Reuters) -FireEye, one of the largest cybersecurity companies in the United States, said on Tuesday that it had been hacked, likely by a government, and that an arsenal of hacking tools used to test the defenses of its clients had been stolen.
FILE PHOTO: The FireEye logo is seen outside the company's offices in Milpitas, California, December 29, 2014. REUTERS/Beck Diefenbach/File Photo
The hack of FireEye, a company with an array of contracts across the national security space both in the United States and its allies, is among the most significant breaches in recent memory. The company’s shares dropped 8% in after-hours trading.
The FireEye breach was disclosed in a public filing with the Securities and Exchange Commission citing CEO Kevin Mandia. A blog post by the company here said "red team tools" were stolen as part of a highly sophisticated, likely government-backed hacking operation that used previously unseen techniques.
It is not clear exactly when the hack initially took place, but a person familiar with the events said the company has been resetting user passwords over the past two weeks.
Beyond the tool theft, the hackers also appeared to be interested in a subset of FireEye customers: government agencies.
The chairman of the House Intelligence Committee, Rep. Adam Schiff, said he would ask for more information. “We have asked the relevant intelligence agencies to brief the Committee in the coming days about this attack, any vulnerabilities that may arise from it, and actions to mitigate the impacts.”
There is no evidence that FireEye’s hacking tools have been used or that client data was stolen. But the Federal Bureau of Investigation and Microsoft Corp are helping to look.
“The FBI is investigating the incident and preliminary indications show an actor with a high level of sophistication consistent with a nation state,” said Matt Gorham, assistant FBI director for the Cyber Division.
A former Defense Department official familiar with the case said that Russia was high on the early list of suspects. In the run-up to the U.S. elections, where Russian interference was a prime concern, U.S. officials exposed some Russian hacking techniques.
Other security companies have been successfully hacked before, including Bit9, Kaspersky Lab and RSA, underscoring the difficulty in keeping anything digital away from the most sophisticated hackers.
“Plenty of similar companies have also been popped like this,” said a Western security official who asked not to be named.
“The goal of these operations is typically to collect valuable intelligence that can help them defeat security countermeasures and enable hacking of organizations all over the world,” said Dmitri Alperovitch, co-founder and former chief technology officer at top rival CrowdStrike.
FireEye disclosing what happened and which tools were taken is “helping to minimize the chances of others getting compromised as a result of this breach.”
FireEye said it has been working to shore up defenses against its own tools with different software makers, and it released countermeasures publicly.
Those showed that the tools uses modified versions of public programs, said Vincent Liu, chief executive of security firm Bishop Fox and a former National Security Agency analyst.
The stolen computer kit targets a myriad of different vulnerabilities in popular software products. FireEye CEO Mandia wrote that none of the red team tools exploited so-called “zero-day vulnerabilities,” meaning the relevant flaws should already be public.
Past hacking attacks on government agencies and contractors have captured such higher-value hacking tools, and some of those tools have been published, wrecking their effectiveness as defenses are put in place.
Both the NSA and CIA have been burned this way in the past decade, with Russia a key suspect. Russian and Iranian tools have been hacked and published more recently. Private surveillance software makers have also been targeted. Experts said it is hard to estimate the impact of a tool leak that focuses on known software vulnerabilities, but it could make attackers’ jobs easier.
“Exploitation tools in the wrong hands will lead to more victimization of people who don’t see it coming, and there’s already enough problems like that,” said Paul Ferguson, threat intelligence principal at security company Gigamon. “We don’t really need more exploitation tools floating around making it easier - look at ransomware.”
Whenever private companies learn of a vulnerability in their software products, they often offer a “patch” or upgrade that nullifies the issue. But many users do not install these patches at once, and some do not for months or longer.
Reporting by Christopher Bing, Joseph Menn and Jack Stubbs; Editing by Lisa Shumaker and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.
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06d7910d50689a646180edf5ed7b39ad
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https://www.reuters.com/article/us-firefighters-injury-idUSBRE9AE0ZA20131115
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Fit firefighters less prone to injury: study
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Fit firefighters less prone to injury: study
By C. E. Huggins, Reuters Health7 Min Read
NEW YORK (Reuters Health) - For a physically demanding job like firefighting, fitness is a basic requirement and may protect against injury, U.S. researchers say.
After tracking men and women in the Tucson, Arizona, fire department for five years, the study team found firefighters with the highest aerobic capacity tended to have the fewest work-related sprains, strains and other injuries.
Even though the least fit firefighters were in better shape than the general population, the study shows “those that are ‘less fit’ in an otherwise fairly fit population of firefighters and medics are still susceptible to an increased risk of injury as compared to their ‘more fit’ counterparts,” according to lead author Dr. Gerald S. Poplin, of the University of Virginia.
Poplin and his co-authors used aerobic capacity - the ability of the body to use oxygen - as a gauge of firefighters overall fitness levels. They got fitness information from records of the fire fighters’ annual physicals and tracked injuries in fire department reports covering 2005 through 2009.
The Tucson fire department operates 21 fire stations and serves 520,000 city residents.
Among 799 male and female fire service employees included in the study, 357 had at least one reported injury during the study period. There were a total of 773 injuries - not including strokes, heart attack, heat exhaustion and other conditions that suggest an underlying disease or problem.
Two thirds of all work-related and exercise-related injuries were sprains and strains. Thirty percent of injuries led to lost time on the job.
Poplin’s team followed standards from the Wellness Fitness Initiative of the International Association of Fire Fighters (IAFF) and the International Association of Fire Chiefs (IAFC) to divide participants according to fitness level.
They used a measure of aerobic fitness, VO2 max, that represents maximum oxygen levels transported through the body during extreme exertion in the form of milliliters of oxygen per kilogram of body weight per minute.
To put things in perspective, Poplin told Reuters Health, for non fire-service workers, gardening may require 14ml/kg/min of aerobic capacity, whereas professional basketball or cross-country skiing may require more than 50ml/kg/min of aerobic capacity.
In the general population of nonathletes, the average healthy man will have a maximum capacity between about 35 and 40 and for the average healthy woman it will be about 27 to 31.
For the firefighters, an aerobic capacity of less than 43 was considered “less fit” and those with a capacity greater than 48 were considered “more fit.” Overall fitness levels among the study participants ranged from about 43.6 to 55.8, the researchers report in the American Journal of Epidemiology.
In general, the firefighters’ risk of on-the-job injury increased as their fitness levels decreased. The least physically fit firefighters were more than twice as likely to experience injury as the fittest
The least physically fit individuals also experienced injury sooner, within about two years, than the most physically fit firefighters, who lasted about four years without injury.
In their report, Poplin’s team says it’s not clear why the fittest firefighters were less likely to get hurt, but they speculate that those “in the top levels of a fitness spectrum may not be as susceptible to microtraumas and may recover better from injury than their less-fit counterparts.”
The researchers conclude, “These findings illustrate the importance of fitness in reducing the risk of injury in physically demanding occupations, such as the fire service, and support the need to provide dedicated resources for structured fitness programming and the promotion of injury prevention strategies to people in those fields.”
Jim Brinkley, director of Occupational Health and Safety for the International Association of Fire Fighters agreed and also emphasized the importance of teaching proper lifting and bending techniques.
“Fitness without proper movement patterns or proper movement without fitness both leave you unprepared to meet the physical demands of the job,” he told Reuters Health.
According to Poplin, the study results indicate that for an individual firefighter, improving aerobic capacity by 3.5 ml/kg/minute would reduce injury risk by about 14 percent.
However, improving physical fitness among firefighters will require financial resources and specialized trainers, such as the peer fitness trainers used in the Wellness Fitness Initiative, he said.
A key aspect of the initiative, which calls for individualized wellness-fitness programs for active firefighters, is a holistic wellness approach that addresses “medical, fitness, injury/fitness/medical rehabilitation and behavioral health,” according to the IAFF Website.
Currently only about 10 states, including Washington, Texas, and New York, have fire departments participating in the initiative, along with one department in Alberta, Canada.
“We have this make-believe image that firefighters and paramedics know how to keep themselves in shape… but they need proper instruction just like everyone else,” Poplin said.
Noting that “a lot of fire departments rely on other fire departments,” Poplin added that volunteer firefighters would also greatly benefit from such resources.
Brinkley cautioned against a “knee-jerk reaction” of setting a physical fitness standard that all firefighters must adhere to, however.
“Everybody’s always looking for that cut off,” such as a specific number of push ups or sit ups, he said.
“There are certain levels (of physical fitness) that are benchmarks to improve to meet the demands of the job,” he said, but the specific benchmark varies from individual to individual.
“To say that every firefighter must be able to do X” is not right, he said. “It is our position that the best way to measure (fitness) is on an individual basis,” he said.
SOURCE: bit.ly/1asOfa7 American Journal of Epidemiology, online October 31, 2013.
Our Standards: The Thomson Reuters Trust Principles.
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