25.08.2021 Jivko Todorov talks to Forbes about sustainable partnerships, high efficiency and principles
Interview with the Executive Director of the Bulgarian Development Bank for the series Forbes Man 2021 - Man on Top
How do you create sustainable partnerships?
Partnerships are based on mutual interest, equality and trust between the parties. When I enter into a partnership, I want to have common goals and clear expectations for the result of mutual work, which we can achieve with open, ethical means and relations.
A successful partnership is built on good faith, honest intentions and commitment. This proved to be a successful formula and helped me build over the years not only long-term collaborations with coworkers, but also many friendships.
However, experience has taught me that partnerships are as dynamic as anything in life. In order to achieve a long-term and sustainable partnership, it is necessary to periodically make analysis, planning and adjustment, if necessary. Yes, adjustment sometimes means ending the partnership when the foundation is already shaken, the goals and approaches diverge and there is no going back.
How do you validate your ideas?
When I have an idea, I first research everything that may have an impact on its implementation. Depending on the idea, I usually comment on it with my loved ones – family, coworkers or partners. In this way I manage to gather different points of view and judge whether it makes sense. I listen to their opinions and recommendations, but above all I listen to myself – that inner feeling that is formed by knowledge and training, years of experience, success and failure.
But no one knows everything because everything changes. That is why I try to keep up with the times, following the development of technologies and innovations not only in the financial sector, but also in business in general. I communicate with many people, but I listen especially carefully to young people because the future belongs to them and they are often the best advisor for validating ideas.
When I'm sure the idea is worth it, I do a "concept test." In today's world, everything has to happen very quickly. It is no coincidence that we have all adopted flexible methods of work and they are the most applicable to new ideas. More and more often we make a quick pilot to validate the idea in order to understand its value and applicability on a larger scale and with more serious investments.
How do you measure your own success?
The best measure of success for me is the personal satisfaction that you have done things in the best way and in accordance with your principles and views. When I see that my work brings results and positives for the company, coworkers, customers and the business environment, then I know that I have succeeded.
Success is also about personal happiness. I am happy to have a wonderful family, loyal friends and longtime coworkers who support me and believe in me. They are my measure of personal success.
Of course, awards and recognition from coworkers and partners are not insignificant. Everyone loves to be valued and I am no exception. My professional honors make me happy and motivate me for new projects and achievements.
How do you create a work environment that stimulates higher efficiency?
I believe that the way we communicate is fundamental to the results we achieve. So I create an effective work environment through communication.
In my opinion, two-way communication and discussion are the "salt" of effective work. I always try to give and receive feedback. In this way I can timely correct both my work and the other participants in the project. They say the team is as good as the weakest member in it. The weakest usually does not have the necessary information, resources or skills to do their job well. That is why I provide the necessary information, provide resources and training for each coworker. I pay attention to the signals and feel who needs what – talents need an individual approach, especially for young people.
The "pepper" in an effective team is the relations between its members. When I create a team, in addition to professional experience, skills and knowledge, I choose people who can be united by a common goal and idea. They do not have to be the same; on the contrary, the strength of a good team lies in diversity because each of us has its strengths and weaknesses and the job of the manager is to arrange like a child's Lego set all the parts that will lead to the most effective and efficient team.
What compromises with personal life does working in the banking sector require?
Compromises are always subjective; for one working 12 hours is a normal daily life, for another it is unbearable stress. In this sense, I would say that I have mostly deprived my family of time with them, but I have not compromised with responsibility, care and love.
I think that with the COVID pandemic the previously popular concept of work-life balance was severely compromised. When you are in a remote work situation, it is quite difficult to determine the beginning and end of the day. When you are in a responsible managerial position, both in the office and at home, the tasks do not have working hours. Working in the banking sector involves huge responsibilities – for analysis, evaluation, risk, compliance and something very small such as a wrong number or comma can lead to serious consequences.
Over the years, I have learned not to strictly divide work and personal life and this makes me feel calm that I do not compromise in any direction. I have a family that needs me and cannot be a victim of compromises. When I happen to work late, I make up for it in the next days or weekends. I am happy to have support and understanding at home; without them I would have a hard time.
What is the biggest challenge in your professional career and how did you deal with it?
I believe that the biggest challenge for me has always been and continues to be working with people and the responsibility you have for them. Here I am referring to the management decisions that every manager must make daily for the little things, but also the bigger ones related to the selection of staff, the development of people, the investment in them, the retention of talents, etc. All this is very important and over the years I realized the impact that these decisions have on the work and results of the team, but also on the career path and life of each person.
More than once it has happened to me to build a team in which everyone has their place and importance, but there comes a time when you have to remove someone. The challenge here is how to choose who should leave or stay? The first time it was very difficult to make a choice and even today I'm not sure it was the right one. In time I realized that it was better to gather the team and explain the situation to them. Then everyone looks for a solution and together you find the best that everyone agrees with. People are different with their needs, views and expectations. But there is also something in common – the need for security and stability in the workplace. This is a prerequisite for a person to reach their potential. My coworkers rely on me to provide them with security, stability and professional development, while I trust them to perform their tasks and duties responsibly and in good faith.
What are your principles as a financier and professional banker with many years of experience in the banking system?
Integrity – to coworkers, customers and partners. I strive to be fair in my decisions and actions, as well as to bear the responsibility for them whatever the outcome – good or bad.
Recently I also liked a statement by the head of a large foreign bank who, after a major crisis, said that "sometimes the things you don't do are the ones that save the company." This seemed very appropriate to me for the banking business, which is conservative after all, and we often have to measure several times before rushing to cut. I say this to myself especially in the current situation because every crisis makes us impatient and haste is not always the best advisor.
You were an entrepreneur for a short time; what influenced your career path in the banking sector?
My experience as an entrepreneur was really short. In 1996, when we were still students, I and some friends registered a company for accounting and legal services. Coincidentally, but also obviously because of my inner attitude to seek security and sustainability, after the crisis in early 1997 I chose the secure path and started working as an operating accountant at ING Bank. From there, I embarked on a career path in the banking sector and seemed to have forgotten my brief experience of running my own business.
Over the years, my work has naturally led me to meet many entrepreneurs and I realized that I may have been right to have found myself on the "other side" of the business – those who evaluate projects, analyze them carefully, and support the truly viable among them. The nature of the entrepreneur is special – creative, generating ideas, looking for niches and opportunities, willing to take risks and jump “into the deep".
Maybe this is not my profile and that's why I chose another career path in the banking sector. But in my work I have always tried to support the business – with advice, consulting or funding. They say that there are no empty spaces in life because there is always a search for balance – there must be entrepreneurs but also bankers to support and finance them.
Of course, I share some of the qualities of good entrepreneurs – they do not give up but move forward with renewed strength and ideas. I do not give up either, but in my field of work and in my path of development.
How did you use your chances for a successful career in ING Bank – from an operational accountant to Chief Financial Officer and Member of the Management Board?
Working at ING Bank has definitely left a deep imprint on me as a person and as a professional. When I started working in 1997, the bank had a small and very cohesive team that did its best to succeed. There I learned that if you want to achieve something, you have to constantly develop and be completely committed to what you do. This led me years later to continue my studies and complete my further education at the HULT International Business School in London.
We all know how important it is to set goals and pursue them, but we often fail to mention chance and its importance in life. You should always be alert to the opportunities that open up before you. No one will give you anything if you don't ask for it. Then, 5 years later, the position of Financial Director became vacant in ING Bank. I said to myself that this is my chance (the bird does not land twice on the shoulder) and I applied for the position. I had little experience, but the then Chief Financial Officer of ING Bank for Europe, as well as the General Manager for Bulgaria, decided to trust me and give me the opportunity to prove myself. They invested in me with both training and mentoring. Almost 20 years later, I am convinced that both I and they made the right choice.
What are your top achievements?
Definitely this is my nomination by the management of Fibank and the award from Forbes and EY for "Financial Director of the Year" in the category "Strategy for the development of the financial function" in 2018. In 2014 I was invited by the management of Fibank to become Chief Financial Officer. One of my main tasks was to transform the financial and accounting function in accordance with the size of the bank and the needs of the management according to the best practices. My nomination for this award by the bank's management four years later was an acknowledgment to me that I had met their expectations and met my goals. And the award itself was a huge sign of recognition from my coworkers and the community.
What is expected from the Bulgarian Development Bank under your leadership?
The Bulgarian Development Bank occupies a specific place in the banking sector and the country's economy. The bank can play a very important role as an engine for the growth of small business in the country and the support of entrepreneurship. At the end of 2020, my coworkers and I started building an online platform and mobile application with which we can reach everyone who is interested in BDB's services in the country. The main functionalities of the platform, in addition to the possibility for online application for funding from the structures of BDB, are aimed at increasing financial literacy (financial dictionary, manuals - How to start a business? How to register a company? How to prepare a business plan?) and providing an opportunity to traders to make their own online store. Our goal is for the platform to be used not only by the bank's clients but by everyone who wants to start their own small business.
Of course, we continue to play an important role in supporting businesses affected by the COVID crisis. We are already approving loans for small and medium-sized businesses within 5 working days and with greater relief in loan requirements for small and medium-sized businesses. The new conditions are part of the "Recovery Program" developed by the Ministries of Economy and Finance to address the effects of COVID-19. Since the start of the program in 2020, loans of over BGN 320.3 million have been granted.
The search for interest-free loans under the BDB guarantee program in support of people deprived of the opportunity to work due to the pandemic continues. For the last two months, 3,463 loans for nearly BGN 18.8 million have been guaranteed under it. Since 2020, 52,555 people have benefited from the interest-free loans under the program and the amount of the funds granted is over BGN 252.2 million.
Last but not least, I would like to note that we are working on a new strategy for the bank for the period 2022-2025, which will be proposed for discussion, and we believe that it will be approved before the end of the year.
