Magazine: Menahalim Nachon (Correct Management)
Date: March 2005

Loans in Exchange for a Smile

He is going to establish a bank here that will put it’s faith in its clients and will not be called "a bank" because the word, in his opinion, has a bad connotation. He is building a chain of Holistic Centers which will open a branch in Jerusalem. He operates a worldwide business and heads of states make pilgrimage to study economy with him. He fought in the Lechi, begged for money, was a secret agent, wrote a best seller about healthful cooking and now he is returning to Israel in order to be influential on the national level.

This is Chaim Chalfon summed up in a 100 words.
Now here is the expanded edition

By Effi Mair Translated from Hebrew by Liora Beker

To be one of the fifty employees of businessman Chaim Chalfon is a slippers experience. The unique work system of Chaim Chalfon is a glimpse into the future. His workers do not know the reality of a rushed exit from their houses while hesitantly sipping the last sips from a cup of coffee, do not account the issue "no parking" if you are 10 minutes late and do not experience throwing glances towards the clock in an attempt to move it closer to the end of the day. The problems that Chalfon's staff encounter are how to log into their computer while rocking the baby's crib or, what slippers to put on for work today which is one room away.

To be one of the fifty employees of the businessman Chaim Chalfon is a slippers experience. The unique work system of Chaim Chalfon is a glimpse into the future.

All of Chalfon's team is doing their work from their homes and Chalfon, using his fingers, counts out the obvious advantages of this futuristic working system. First, he saves on the high expenses of renting offices. Second, his employees start their working day relaxed with homemade tea and are not exhausted by struggling on the roads with parking, which saves precious time and energy every morning. Another advantage which may be considered a shortcoming to an ego driven boss – there is no hierarchy. Chalfon waives off the formal "good morning" of his staff when he lets each one of them work from home. Not every boss would have passed on the adrenalin of controlling people who are physically around him.

With the same human touch, Chalfon counts another advantage for his employees. They prefer to work in this way. And if a member of staff prefers to work from his home and he gets his wish, he is happy, more pleased with his work and thus more productive. A secretary, who can raise her children close to the keyboard in her home, would be grateful to the strange boss who allows her to work as a secretary from her house and will express her gratitude by being more productive. "This is an exceptionally good way to conduct business, very productive, very efficient, without stress, everything is convenient. For me, the most important things are the smiles and the joy of being creative as expressed by the staff. All the members of my team are happy. They spend more time with their children, and all communications among us is conducted with smiles and laughs, without pressure. That people are content is readily reflected by their productivity". And since it is possible to be present visually in a staff meeting through a cell-telephone's screen, it is easier to deduce that future generations will be working more and more with Chalfon's kind of system and that they will say "good morning" to their bosses through the computers in their houses. Chalfon, in any case, will be recognized as a pioneer of an economic and effective style of human resource management, just as he did 25 years ago when the fax was a product we only read about in the papers while he started using it as a remote devise to communicate with his staff.

This unique working system of not using offices, matches another unique work system Chalfon uses with his staff: "There are two ways to conduct business: the conventional system is the triangle where the manager is at the top of the pyramid, but my system is the opposite, I am at the bottom of the pyramid and I serve all those who are above me, the staff and finally the clients who ultimately provide our livelihood. These are two completely opposite approaches. The leader is in his position not to be pampered but to help everybody".

A testimony to the efficiency of the teamwork created by Chalfon in this unorthodox way is the following story. A year ago Chalfon was struck by a sudden desire to publish a unique cookbook. The team was called to help with this exceptional task, which was deviating them from their basic work demands and they were asked to do it without pay since the proceeds were to go to the needy. "I presented the idea to them", and he means by computer of course, "and within 90 days from the presentation of the idea the book was published! What had happened here? We challenged the staff and they were all excited and felt committed thus we were able to meet the tight schedule of an important exhibition". Chalfon thrives for the goal of generating one million dollars from the book sales which will all go to charity. Typically for him, the innovative format of the book shows something of the business nature of its author. Unlike the order, logic and index of an ordinary book's formats, Chalfon's book is written as an uninterrupted reading book. It is impossible to look for a recipe for a soup and then to open the book on page 40. The recipes are set among health related stories and various tips on nutrition and cost-effective diets. Following the English and Spanish additions, the book will be published in Hebrew and German. Chalfon's staff never before dealt with writing or publishing. The success of the project is summed up by Chalfon with a simple message: "the leader's job is not to oppress his people but to take them one level up."

The Presence of Mount Sinai in Sa-Nur

Chalfon, modestly mentions that among his many occupations he circles inside presidents’ halls and acts as a private economic consultant to heads of states.

Even after we bring up the subject, he prefers not to name the countries that spread the red carpet for him when he comes for a consulting visit. Ideologically he is insistent on giving his advice free of charge: "The knowledge is not mine, I was gifted."

Are there countries where the economies operate in accordance with your vision?

"The fact that I presented heads of states with a plan does not mean that they have succeeded in overcoming their domestic political hurdles."

Do you have an advice to Netanyahu should he read this article?

"If he would make himself available, I would gladly give him some ideas which might be viewed as blessings. Without any charge. I intend to get more involved with the objective of separating politics from economy".

Seven years ago, after being influenced by a paragraph he had read in the book of Zohar, Chalfon started the process of returning to his Jewish roots. When we ask him how this process is affecting his way of conducting business, he asks our permission to utter a sentence with a preaching sent. We agree.

"If you are united with the Creator and his system, everything comes together. But only when you deserve it, not when you want it and it takes patience. We want everything right now, but who are we to decide that our wishes must be granted at this moment? One need not lose faith if it does not occur instantly. With me it happened when suddenly I started to see how things come together in wonderful harmony even if it didn't happen in accordance to my actual plans.

How has your work schedule changed since then?

"At first I felt guilty for taking time from my business to engage in spirituality, but then I noticed that I felt more relaxed thus more efficient and I understood that it is a good investment. I decided to start my day with an hour reading in the Book of Zohar and meditiation."

Chalfon visits Israel almost once a month and in reply to the question why he does not simply moves back to live in Israel, he has a decisive answer – in one months time he’ll be returning to Israel.

Although indeed Chalfon lives abroad, emotionally he is involved in national events here. "The issue of holding on to Yehuda, Shomron and Gush Katif is very important to me" he says, immediately demonstrating his emotions. As soon as the request for his opinion on this local political issue is thrown at him, he bursts into tears. We wait for the outburst to subside but Chalfon means every tear that comes out of his eyes when he mourns from the depth of his heart the possibility that Jewish settlements will be evacuated and destroyed.

"It simply can not be. It is almost like the destruction of the holy temple. It seems to me that the Creator will come down in a cloud and prevent it from happening" says Chalfon and dips every word in a warm tear. It is difficult to remain apathetic in view of a well brushed businessman who lets his emotions regarding national issues being exposed. "Forgive me for shading tears. I have come to the understanding that tears come when words no longer have strength. These are not tears of sorrow but of thanks for the privilege given to me to do good deeds."

Yossi Dagan, the family's coordinator in Sa-Nur confirms the above. He tells about Chalfon's telephone call to the Settlement Office. "He heard about us and asked to donate a Torah book. He arrived and saw that we have a small Holy Ark and decided to donate a new one. The third step was taken when he decided that a new synagogue is needed to be built and for this purpose he recruited his friends who also donated money". Chalfon who was once a builder in his career, took part, along with his son, in the actual building of the synagogue. Dagan says that Chalfon comes and participates in all the events the settlement organizes.

Why does the settlement in Y"esha remind you of that?

"There are many things which cannot be said so as not to commit the sin of arrogance". From the little bit that we manage to get out of him we learn that apart from the warm tears, Chalfon expresses his connection to the settlements in Y"esha by giving, like the above mentioned donations of a Torah book to the new settlement Sa-Nur in the North of the Shomron and the soon to be built synagogue. As mentioned before, Chalfon prefers not to elaborate on other donations. With regards to future donations which are being considered, he is willing to release only a vague declaration: "I can do something big for the people of Israel and I have a good feeling that I will be privileged to do so."

When it comes to religion, the practical businessman exposes a soul possessed with a burning fire of belief, which is expressed well in the way he describes the ceremony of bringing in the book of Torah into Sa-Nur: "It was like the Presence of Mount Sinai. What had impressed me most was that all the time white and black birds accompanied us, when we arrived at Sa-Nur they had landed on a tree. It was some sight".

Waiting at the Corner for the Banks

Chalfon is a man of smiles and pleasantness which begs for an explanation of his ability to survive in the elbows oriented business world. Chalfon: "there is no use in expending energy on a war with a business partner. If there is no good chemistry from the beginning, we shake hands and say goodbye. There is a common saying among business men: I made a killing of a deal. Two months later that “killing of a deal" does not turn out when the goods you purchased do not arrive. Of course they do not arrive - you had "killed" the manufacturer with an unfair price which he could not handle. It is a question of fairness. When you put this into people's heads, they understand that your success is not random".

To fairness of this kind there is also an overall look at the system. "In the economy of the last few years people look only at the bottom line, how much profit is eventually made. This is how the economy looks like, swinging unstably up and down, because they are focused only on the bottom line. We, on the other hand, are motivated by the human value, not by the bottom line of profit only".

Chalfon has translated his basic belief in the Creator into good advice for the newly rich: "The one who understands the scheme of the universe knows that when one controls the spirit, the material will flow, abundance will come. There is a certain amount of good in the world and it needs to be divided among all. If one grabs too much it will come back to haunt him".

I have seen many who took too much

The question about those who take too much brings up the immediate association with the banks, and Chalfon gets carried away when he gives his thesis of the tyrannical control of business by the big banks. Chalfon speaks from his own bitter experience when he talks about the banks trampling control. Only recently he had negotiated to purchase a small sized bank in Israel, a bank that has difficulties and he refuses to reveal its name. Chalfon was ready to write the check and return home with the bank in his pocket but the big banks that caused the bank's difficulties in the first place, also jeopardized any attempt to heal it or allow it to be purchased.

"The big banks have an enormous power. They are in charge of the rules of commerce in the country, they make sure that the legislators write the laws they wish. In our country the poverty level is shocking; how can it be explained with all the Jewish brains that make fortunes all over the world? It is only because of the complete control of the big banks."

It is hard not to join in the unflattering observation about the banks. Chalfon however, has an optimistic forecast which is related to the questions that led us to the discussion about the banks. "They are swimming in fat but in my opinion within ten years the banking world will collapse. Even iron eventually breaks."

In his positive way Chalfon is not satisfied in just chattering gloomily about the banks but suggests an alternative model for a positive bank, a model which may brake through to become a shining prototype model for a different world than the one we know. "I will give you a taste of future banking" says Chalfon, having in mind the bank he plans to purchase or establish himself in Israel in the near future. "Suppose I have 10 million dollars in the bank. I don’t touch the capital but I share the profits: third goes to the shares holders, and two thirds I will invest in the community".

Just as a reminder we will point out that Chalfon's bank will not be placed in a fancy building but in a fancy living room and all the bank's employees will work in slippers from their houses in accordance with Chalfon's working model.

And now back to the business innovations that make one wonder how it was not thought about before. "A man has a business idea and he needs a loan. Today, no one will give him the money without guarantees and securities which most people do not have. I will break the wall of distrust and open the pocket to anyone who looks decent to me, who will present an idea of an economical product or such that will contribute to the community. Look what will happen psychologically. After I give him the loan, the man will feel like he is in paradise with these fools who gave him 50 thousand dollars in exchange for only a signature, but now he will be immersed in an environment of trust. It will keep rolling as this man will also trust others. I know that four out of ten who will receive a loan from me will not succeed in their business, but the six who will succeed, will never deposit their incomes in Bank Leumi but in my bank, the bank that remarkably trusted them when they just started. The successful six will cover the loss of the four who didn't make it."

The revolution of loan in exchange for a signature and a smile is nothing in comparison to the real planned revolution- a loan without interest. The compensation will be returned only from future incomes.

As an owner of ideas which require financing, I would like to know when this utopist bank will be opened.

"First of all, it will not be called a bank because this name has already been contaminated. We will find another word for it. Establishing the bank is delayed for the moment, because the big banks made sure to pass rules which do not allow opening a new bank in the country". But against the big banks stands a stubborn man who declares that within one year he hopes to invite us for the launching of a new bank despite of the difficulties they are piling in front him.

How is it done?

"Everything I ever wanted in life I have achieved. This will not be achieved easily, but it is only a matter of time and faith."

Do not let money sleep

For someone who is soon going to convince us to invest our money in his innovative bank, Chalfon (normally Jewish people would adopt their last name according to their profession or business occupation. Chalfon = exchange/change. Several centuries ago the family started financial business which is mainly based on currency exchange and transfer, hence the name Chalfon) surprises when he explains logically why it is a distorted practice to lay down money in the bank in a saving account.

"Money is energy, not substance, also in the Torah it is called Zuzim (moving), it needs to be moved. If the money is sitting in the bank it is not productive and will lose from its value. Money is meant to work for us, if one freezes his money he will lose it. I have seen in my life evaporated fortunes; people who got inheritances and the money slowly disappeared because it was lying dormant."

We try to protect the "evaporating money" in savings accounts with the educated case that at least this way the money is linked to the index, but here Chalfon reveals what would be known as the fraud of the century if proven in public. "We should not believe those who say that the inflation is only two-three percent a year. The government, as all governments in the world, has a clear interest to minimize the inflation data because the government payments, such as social insurance and government contracts, are linked to the index which is being published by the government itself. The real inflation in Israel is around ten percent, which means that the purchasing power in the investments accounts only shrink. The investor is happy that at the end of the investment period he has a lot of money, but his purchasing power went down considerably. This is a message that people find hard to understand; money must work in order to fulfill its purpose".

Like a Tsunami wave Chalfon continues to shred everything we thought we knew about banking:

The bankers are experts in investments, and we had better deposit our money in the hands of the experts who perform well the job of investing – so we thought, and this is what the advertisements are constantly drilling in our ears. But those who are turning to Chalfon to invest their money today and in the future bank hear the opposite from him and his people. "Every one of us has to learn to invest the money by himself. You have worked hard for your money; now give it the right respect. One should learn the principals of investing. It is not difficult or complex and you should make the decisions by yourself. It is not right to convince a man what to do with his money because money is not a product, it is energy".

Maybe it is good as a poem

"I need to give my client the information and he will decide what to do with his money. Bear in mind that the broker or the bank's clerk who recommends buying a certain stock or other is only gambling with your money. He will get his share from the portfolio even if his gambling was a bad one. I do not gamble, I cut a deal only when I know how I come out of it. If I have a buyer and a seller only then do I have a deal which is made in the safest way, knowing I have a buyer. This is a system I have developed, I enter a deal only when I am certain how I come out of it, and there is no element of surprise, it is simple but complicated at the same time. It is complicated because we were brain-washed to believe that if someone makes a profit someone else needs to lose. It is not right; there is a possibility that everyone will win".

Wealthy, but maybe healthy is preferable

Even before we will be granted loans in exchange for a smile at Chalfon's bank, we will get a smile and a relaxing massage from his people. The project which is urgently on his agenda is to establish a healing center in Jerusalem. He has been working diligently on a unique concept of a holistic health center for three years and now he talks about the concept of "the McDonalds of natural medicine" on an international distribution basis.

"My life’s ambition has been the linkage between health and wealth. The idea which I have formed is that all the natural values should be under one roof". Chalfon does not have to mince many words in order to visualize these concepts; they have already been realized in a healing center he established recently in Barcelona. There is a kosher restaurant based on healthy food. For obtaining the Kashrut the local chef does not need much effort because the food is based on purely orthodox vegetarian food, and even milk and its by-products do not have access to the place. Serving fish is acceptable.

The Kashrut certification is needed not only to match Chalfon's conscience but also to give service to the thousands of Jews who live in Barcelona as well as many thousands of Jewish tourists that are coming to the city. Chalfon is involved in the restaurant not only by counting the proceeds in the cashier box but also as an ideological believer in the subject. He is involved at the stage of the menu design, when his first concern is to care for the health of the diners. Alongside the restaurant the innovative center offers about forty types of therapies: Minerals water treatments, different types of massages, various saunas, group therapy, healthy food tasting at no charge and of course intensive free lectures on natural health. Chalfon talks about the healing center which is planned to be built soon in Jerusalem in spiritual terms. We close our eyes as we try to envision it. "It will be such a place that from the moment you enter you’ll be cut out of the stressed world you left behind, and this in itself charges your batteries. The idea is that this place is not just for the rich. In the center we have established in Barcelona, there are people who come to eat in the health restaurant every day. People who come to us would understand that you don't get a massage just because your back hurts, but to prevent the pain, before it attacks you. The concept will be - top quality with a modest price. It is possible because everything is under one roof. Representatives from the media came to the opening ceremony in Spain and I said there that I declared war on pharmaceutical companies and fast food restaurants."

A few insignificant details such as Chalfon's instance in furnishing the place using only wood that is permitted to be cut can testify to the holistic nature of the health shrine which Chalfon intends to build here. The mall will also spread its wings outside by giving lectures about healthy, natural life in schools, just as he is starting to do within the school system in Spain. Part of the holistic nature of the place is expressed by letting needy people have free meals in his restaurant in Barcelona once a month.

Chalfon's decision to put all the eggs in the health business is motivated not only from the belief in natural medicine, but also from a pure business concept: "Medicine is the third largest industry in the world, after food and housing. If you manage it in the way of serving the people and educating them at the same time, it works. It is not a fashion or a technological invention that can be changed tomorrow. The success is a commitment, no matter how long it takes. Today there are a growing number of conventional doctors who train in alternative medicine because of the demand and even insurance companies are already financing the alternative treatments because they are less expensive than financing an expensive operation over decades."

Chalfon's activities in the finance and health fields can be summed in one line for his personal future plans: "My dream is to sit at the gates of the city and share knowledge with whoever wants advice, connections or support. It will happen, and even today I have a taste of it when people come to me to get advice on any subject. My greatest pleasure is to give continuity to the experience I have accumulated through life".