Jack Ma, CEO of Alibaba, has described Israel as “incredible“, a very neat follow up to a recent post, where the question was posed “what makes Israel so different?”.

I raise the issue because this week the Holy Land is yet again forced to defend itself against its verbal protagonists. The Israeli act is one of the leading contenders in the Eurovision Song Contest, which will be screened this week to hundreds of millions of people globally. Those haters of the Jewish State from the BDS campaign are reportedly targeting the event, demanding a boycott of Israeli culture.

I do not intend to spend yet more time, explaining why BDS is so segregationist. Certainly, its proponents spend little time on the evils of North Korea or elsewhere. What is of more interest is how Israel is having such a positive role in the world’s commercial and cultural life. Just look at this series of events, all news items over the past few days.

  1. Giro d’Italia. For the first time, part of this magnificent race was held outside Europe, hosted for three days this month in Israel. 175 riders competed from 22 teams. The exposure of hundreds of journalists, as well as the TV scheduling into millions of homes in cycing enthusiasts was a phenomenal achievement.
  2. Whisky Live, Tel Aviv. For the fourth time, Tel Aviv played host to numerous distilleries from Scotland. Israel is proving to be a small but growing part of their export industry, as imports have risen over 300% in the last five years.
  3. Also coming to Israel is a Beetle, Ringo Starr. He has just added a second date to his June schedule in Tel Aviv.
  4. Arriving in Israel this week are the delegates to Israel’s premier Agritech exhibition. Israel is a country with over 750 start ups in the agri-food sector. No wonder that there will be representatives from over 100 countries, which means several are based in places which do not recognise Israel officially.
  5. Frutarom is an Israeli company that has sought to grow through acquisitions. Now the boot is on the other foot, as International Flavors & Fragrances Inc. jumped into a rush of dealmaking in the food-flavoring industry, agreeing to buy Israel’s Frutarom Industries Ltd.for $7.1 billion including debt.
  6. And for the last item, I run off to Indonesia, the largest Muslim country in the world. The authorities have agreed to issue visas to Israeli tourists, a complete slap in the face for BDS.

I have not had time to mention the three embassies that are about to move to Jerusalem.  And so the list goes on.

By the way, if for one moment you thought that all of these changes only applied to one sector of the population, I caution you. Just see who are the prime buyers in the new luxury car market in Israel!

Last week’s demonstration by approximately 2,000 Jews in central London against overt anti-Semitism in the British Labour Party provoked one very definitive outcry by observers of all religions. To summarise: How is it possible that in the year 2018, in a country that prides itself on accepting differing cultures and where Jews have made such a contribution for hundreds of years, they feel threatened and unsafe?

Seasoned journalist and commentator, Melanie Phillips, penned the penetrating observation that:

What the left cannot grasp is that the new antisemitism uses almost identical tropes against Israel, the collective Jew…..Labour will never rid itself of antisemitism while it supports Palestinianism. The choice it faces is said to be between Corbyn and the Jews. In fact, the choice is between Palestinianism and the Jews.

I connect these remarks to a small yet pertinent stat that I read this morning. This coming Wednesday evening, for 24 hours, Israel will commemorate the annual Memorial Day for the Fallen Soldiers of Israel and Victims of Terrorism. 23,645 people make up this number (so far), including 3,134 civilians, while the total population today is about 8.1 million.

However, what shook me was that of the 101 names added to the list during the past twelve months, 12 of them were civilians killed….just because they are Israelis. It shows most candidly how the one Jewish country in the world remains an anathema to so many and thus becomes an excuse for anti-Semitism.

A nickname for an Israeli is “sabra”. This is a fruit indigenous to the Holy Land, known to be prickly on the outside yet sweet inside. However, Israelis do not forget too readily. Yesterday was Holocaust Day, where the sirens sound at 10.00am for two minutes. People stand in silence. Drivers stop their cars and briefly step outside.

There is even a video on Facebook of Israeli tourists in Thailand, standing in remembrance at 10.00am local time around the pool. That is the meaning of the sanctity of life for Israelis.

And elsewhere in the Middle East? Should I write about chemical attacks on innocent civilians in Syria? Should I contemplate the public executions of homosexuals in Iran? Or the fact that today, the Palestinian protesters along the Gaza border with Israel will continue their peaceful spontaneous protest with all the violence they can muster, planned in advance.

I’ll stick with the values of Israel, 70 years old this week and still going very strong, for the benefit of its citizens, the UK and the rest of the world.

 

Almost everyday, I find myself inundated with motivational videos and blogs. Some work, and some….well, they are a bit weak.

So, I am going to spoil you dear reader. What follows are four links to some of the better pieces of content that have come my way in the past few days, with the message summarised for you. They are primarily targeted at the owners of small or medium sized enterprises. I hope you find them not just interesting, but useful and applicable as well.

The first one is for those who sometimes find themselves feeling a bit down – rejected is often a phrase that comes to mind. You have lost a contract. A trusted employee has walked out. You know that these things happen, but ………

Dr. Robert Brooks reminds his clients, when they talk about not receiving a work interview: “They didn’t reject you, they rejected your resume. . . . “. He develops his argument by noting that just because we see something right now as ever so excruciatingly important for ourselves, maybe it is actually merely a nice diversion. You learn to appreciate that there are many different paths that contribute to a life filled with satisfaction, hope, caring, compassion, and resilience.

My second item refers to that employee, who you have rejected and fired. Or maybe you did not realise they had been unhappy and they decided to leave. Do you know how much it will cost you to replace them?

Never mind the loss of knowledge of knowledge. Typically,

Employee turnover results in costs (internal and outside services) to the employer, including those for employee separation/departure, lost productivity, recruiting and hiring replacement employees, orientation and training of new employees, etc.

Put that into dollar terms, and you are finding you are starting to pay an extra half month’s salary just to keep you from moving backwards. Hefty on the cash flow of a SME. Do you want to go there?

Moving on to long-time entrepreneur, Richard Branson. I was referred back to an interview with him from 2015. He was asked what kind of people he recruits to run his businesses. The core of the answer referred to demonstrate that they can lead through ‘motivation’.

However, Branson prefaced his response by admitting how important it was for him not to run those new business units he had created. His experiences taught him that the day-to-day operations should be left to somebody else with a fresher approach. His added value is that of chief strategist, and that did not require him to be on centre stage 24-7.

Finally, but definitely not last, are arguably the ten greatest business bungles of all times. They are astounding to recall. They certainly put into perspective mistakes I have made or seen others carry out. My all-time favourite remains Number 2.

Nevertheless, for all the smirking, the video highlights a vital message, one that has not changed over the centuries – even if so many of us keep ignoring it. Know your market! And if you think you know what that is, go and check yourself again!.

I feel that all four items do come together under on theme. My role as a business coach and mentor is show my clients how their failures or those of others are not something to laughed about nor to be ashamed of. They are the basis for your next successful endeavor.

It is two decades since I learnt a very valuable lesson in human resources. The incident was painful and embarrassing, but remains hugely insightful even today.

I was attending an extended training session. I was sitting in a circle, amongst my colleagues, one of the more senior members of the team. My assistant complained that I had not listened to him on a certain issue. I answered back. He then proved to me that this had occurred several times previously. And on each occasion, there had been a negative fallout.

Punch line – said in front of everyone. “Michael you cannot keep ignoring all the time what somebody is warning you. And then once the mistake has happened, you blame somebody else.”

In other words, at what point in time was I prepared to take responsibility for my actions, and how I had trained my own unit?

I went home a lot of humble pie.

I have since move on to become a business coach and mentor, primarily in the Jerusalem area. I have frequently confronted by CEOs, determined to shift the focus of their troubles on to the shoulders of their employees. Showing these leaders how they can change and thus an impact a situation is one of my challenges and thrills of my work.

And all of these thoughts can flooding into my mind when yet again I was reading about Jeremy Corbyn, the leader of the Labour Part in Britain. Now, as somebody born and educated in London, UK politics still interests. And to observe the need for British Jewry in the year 2018 to demonstrate against the demonic rise of anti-semitism in the Labour Party is deeply concerning.

We know that Marxists have a fundamental problem with Judaism. They, including Corbyn, claim not hate Jews. However, the religion is also a nation, which emerged long before the modern Israel-Palestinian conflict. That is an anathema; complete no-go territory.

Has Corbyn been warned previously that his words and actions (or lack of) and those of his supporters are offensive, degrading and unacceptable? The answer is a categorical yes, as this link will testify.

How many times? According to Labour MP John Mann:

Seventy-four is the official figure but there is a very significant number of others that have not been properly registered. It is many more than 74. There are around 130 other cases I know of which have been put in. They are going to be resubmitted, and I am asking for them to be properly assessed. What is depressing is that there are so many cases being dealt with officially – and that it had taken so long to deal with them. We are talking the last two or three years.

So Corbyn has been told of the issue. And he has done nothing about it, or next to nothing. That makes him the root of the problem. As per the theory laid our above, he is the one that must change.

Maybe he can start by recognising that Jews pray to Zion, and that is located in Jerusalem. That could be so confrontational, that it might conjure up a painful shout of “oi vay”!

(Just as I finished writing this blog, it emerged that Corbyn has been a member of 5 virulently anti-Semitic Facebook groups).

 

Israel is on the verge of celebrating 70 years of Independence – a massive opportunity for a fun day with the family, as well as mega photo shoots for the politicians of today.

And there are two causes for all of this. First, for all the geopolitical threats over the decades, Israel is here to stay. Even Saudi Arabia is now letting planes fly over its airspace to Israel. Second, Israel has transformed itself from a backward agricultural economy to a high-tech giant. Israel is an OECD member with a stock market that has a top tier ranking.

The question is how has Israel moved from rank bottom to top 25?

Go back to 1948 and the early 1950s. The country was broke. Minimal imports. High unemployment. No industry. War reparations were a miracle gift. Still, the victories of the Six Day War in 1967 were followed by another depression. And nearly twenty years further on, Prime Minister Peres had to freeze prices and wages, while the stock market was temporarily closed.

So the question remains, why is Israel of 2018 a headline-setting example of innovation, entrepreneurship and hightech wonders? What has made the difference?

Sever Plocker is one of the country’s leading economics reporters. Writing in Hebrew last Friday in Yediot Ahronot, Plocker highlighted Israel’s immigration policy. In effect, what he was saying that every economic boom was preceded by a significant amount of new arrivals to the country.

For example, the 1950s were noted for the hundreds of thousands who fled Arab countries such as Egypt and Iraq.  Between 1956 and 1958, 37,000 rushed out of Poland, due to the country’s new anti-semitism. Add in the many who left Russia in the 1990s, and Plocker suggests that over three million people have arrived in 70 years.

The main waves occurred just before an economic boom. The current GDP per person is about US$40,000, twenty times that of 1948. And today’s total population is a little over 8 million, roughly equivalent to the size of Wales. It is the talents of these people, who support the phenomenal changes realized at companies like Checkpoint, Mobileye, Elbit and others.

Where are today’s core economic problems to be found? The OECD finds that Israel’s roads are amongst the most congested in the world – ironic for a country that was subject to an oil embargo. There is a chronic shortage of beds in hospitals. And large members of the potential workforce, particularly in the ultraorthodox and Arab communities remain just that – potential participants only.

To that list, I would add the centralisation of certain sectors; the lack of reforms at Israel’s ports and the restrictions on food imports are just two obvious examples. And these are opportunities to be exploited by vested interests. From here, it is only a short jump to cries of corruption amongst senior politicians.

That said, Israel has done phenomenally brilliantly in 70 years. I raise my glass to the next few decades of economic freedom and triumphs in the Holy Land.

It happens to all of us from time to time. Suddenly you realise that everything is going wrong at work – Out of nowhere, an argument has erupted with a key customer; your next project is cancelled; that key worker passes away unexpectedly; and much more.

What do you do?

In truth, all of these happened to various clients and acquaintances of mine this week. You could claim that I have jinxed them. From the depths of their despair, they turn round and say: “You are my business coach and mentor. What do I do now?”

It is not so much a request as a demand for you to wave a magic wand and to make it all better in a jiffy. I suppose it is somewhat ironic that as I wrote this, I happened to be listening to R.E.M. play “It’s a bad day“!

Motivating is rarely the easy task as television and the cinema portray. We all wish that we had a Herb Brooks speech ready-to-go at the drop of a hat. You can hear him now urging on his ice hockey troupe –  “You were born for this”.

It ain’t that easy. I was running in the Jerusalem marathon a couple of weeks ago, and was in desperate need of some choice words just past the half way mark. Nobody was around. I had to make a determined effort to change my line of thought.

This assertiveness is a trait that some prefer to ignore. It is seemingly easier to be placid and friendly. I suggested to one CEO this week how it can be applied at work. However, by the end of the day he had written a brief email, describing how the advice had backfired. I actually believe that he may have blinded by immediate setbacks, which will be replaced by longer term achievements.

Hollywood actor Will Smith in a recent video put this very succinctly.

When you get to the gym and work out, you are seeking failure.

Now there’s a thought. Yup, he is right. He could even have said that we want to fail in order to succeed. And that is why is went on to state:

Get comfortable with failure……….because that is where growth is.

Remarkably, a few hours after listening to Smith, I came across a quote from an old man with a strange bushy haircut. “Anyone who has never made a mistake has never tried anything new.” (Albert Einstein).

So, next time you have a “downer” at work,……………

 

Getting into and around Jerusalem these days is no fun. The construction work for extending the light railway reminds one journalist of a siege situation. Improved public sector travel services in recent years has not resolved the rush hour congestion. New buildings are considered ugly if not gothic. And mass sell offs of real estate by the Greek Orthodox Church have sent land prices tumbling in some neighbourhoods.

Not all is doom and gloom. The Fattal chain is looking to open its fourth hotel in the holy city. Facebook recently held on of its first international events on behalf of small businesses in the capital. And in three months time, Jerusalem will be graced by the presence of Prince William from the British royal family.

Jerusalem continues to attract key high-tech investments. Mobileye, sold to Intel for US$15 billion, is located to the north of the city. OrCam, “which has developed a visual aid for the blind and has completed a funding round that values the company at $1 billion”, was created in Jerusalem. The expected opening of the American and probably other embassies in Jerusalem is likely to promote a spike in housing prices and also a need for additional support services.

The next few years look like to be a messy yet exciting growth path for Jerusalem’s economy. This will not just be featured in traditional sectors like tourism. Even a distillery is planned to open in the south of the city – the first round of funding is near complete.

In the meantime, the local populace and visitors will just have to put up with those awful traffic jams.

Every couple of months or so, I give a lecture in Jerusalem on the theme of “time management”. It is usually held at the MATI innovation centre in south of the city, directed primarily towards new immigrants to the country looking to set up an enterprise.

We are talking about a highly motivated section of the community. They seek to make that extra difference to society. Their ideas include the food industry, apps, journalism, retail and beyond. And yet……

And yet, almost invariably, most of the participants arrive late for the start of the talk. I cannot understand it. Here I am, an experienced coach and mentor, looking to impart free advice for their new start, and they miss the most important part of a talk – the beginning.

The question is why.

When I ask the guilty parties, the reply is frequently limited to a shoulder shrug. Neither very helpful nor inspiring. Blame the heat of the Mediterranean climate is what I am told to accept, which I reject on the spot.

During the talk, I look for a volunteer. I tell them to consider one task that they have put off carrying out for some time, even though they know it is important. I then engage them in a question and answer session for 60 seconds or so.

I ask them to consider what would happen if they were to carry out the assignment. When they respond, I ask the same the same question. The next response draws the same question, and so it continues.

The scenario comes to an end, almost invariably, when the person mentions that as a result of everything, they can make a sale and so earn extra income. It is almost as if they have been programmed to believe that making money is an evil – an abomination, which they should be very wary of.

Somewhat immodestly, I then link this thought process back to the reason why people are late for my seminar. Consider: If they were to turn up on time, they might learn something. Implementing that advice could result in additional revenues. Ouch!

Why are people so afraid of extra commercial value?

 

When it comes to SMEs – small medium sized enterprises – around the globe, two themes repeat themselves. First, they comprise over 90% of all commercial activity. Second, all governments claim to support them, while the civil servant often takes a different attitude.

And in Israel?

If you are looking for a miracle from the Holy Land, I am sorry to disappoint you. My experience as a business mentor and coach in the Jerusalem area throws up story and story, a veritable reservoir of material, as to how officials insist on being small minded when it comes to “helping” SMEs.

Just look at these instances faced by clients and associates just recently.

  1. An owner of a launderette has just opened a second outlet in North Jerusalem. He excitedly posted a notice on his glass door, announcing the premise was open for business. A few days later, two officials from City Hall turned up unexpectedly and declared that the A4 piece of paper was a “sign”. That requires a full license, which he did not have. He was duly fined about 1,100 nis – say US$300. By the way, if the notice had been placed on the outside of the door, the sum would have been around 1,500 nis!
  2. My client was busy with some administrative tasks in his Jerusalem premise, when in walked two officials from the income tax authority. They found that he did not keep a diary of all appointments, apparently a foul crime. He had also not managed to receipt two cheques from the previous day. Their value was around 4,000 nis. His total fine was close to 5,000 nis for his heinous crimes against humanity, about half his take home pay per month.
  3. My office is in an area, known for a chronic shortage of parking. Last week, I could not find one spare spot for my vehicle. After all, due to new construction, lorries were parked in some of the spots. And road works ensured that another 30 places had been dug up. With pressing appointments waiting for me, I parked illegally. And you have guessed the next line – one 500 nis parking fine was waiting for me several hours later.
  4. I am furious on behalf of one of my clients. Due to a technical issue, the income tax authorities demanded additional paperwork. This held up vital procedures at the bank. The pieces of paper were rapidly delivered. However, a glitch meant that the bank could only see on the computers that they were not allowed to process their work. Despite protests over weeks, the tax officials could not fix the problem. My client was asked to pay a large fine – thousands of shekels – and suddenly everything was fixed!

I could go on. It is assumed that in some of the instances, the officials are paid some for of bonus or success fee for their efforts. And you are reading this and shouting out “appeal, appeal”, I have to ask: “Have you got the time and effort”? In one case, the person involved was explained the process and cautioned that it could end up with a stiffer fine.

The good news is that……………the government believes in supporting SMEs………assumedly via the extra taxes that collect through situations as described here.

 

It is one of those subjects that keeps coming up with my clients. How can they lock on and retain their better employees, even when pay rises are not available?

One obvious way is to call somebody in for a chat. Talk about all the good things they are doing. Chuff them up. However, this perfectly obvious solution, is not so perfect in itself. According to James Adonis, an expert on employee engagement:

Research shows the majority of performance appraisals have zero impact on performance. One reason for this is that appraisals are often laborious. When both employees and managers dread them, they can’t ever be effective.

Adonis goes on to point out that few receive a 100% score card. What is important to note is whether the final score is handed to somebody, who feels that they will not achieve the top result, or to a colleague who understands that have outperformed most others. If the latter, that person will probably continue to do well.

Adonis offers some advice for handling employees in either category. A common theme between the two groups is the need for a senior manager or owner to ask questions. They should show that they are genuinely engaged and that they care. They will also be able to find out work makes a person ‘tick’, thus allowing them to manage the expectations of colleagues.

Personally, I find that there is a further issue that is all too often forgotten by employers. They are required to find a method that allows their employee to feel that they are respected; that they are valued. In the past few weeks, I have seen two key workers in the Jerusalem area just up and leave, the energy and innovation previously sucked out of them by superiors seeking more while withholding positive feedback.

And had they been handed an extra few percent as a bonus or a monthly salary increase, it would not have done it for them. They had been shoved around for too long. In other words, they simply could no longer bear the thought of coming into work every day. How depressing!

I suspect that many readers may find the last two paragraphs a touch obvious. So, here is the challenging question: Why is it that we hear about such stories all the time? And, if we are really honest with ourselves, how often have we also been guilty of such crimes and lack of consideration?

To be blunt, if you invest in a few minutes of showing your appreciation, it may save a fortune compared to the cost of replacing an employee.

 

Nearly a week has passed since Israel’s police recommended pressing charges against Benyamin (Bibi) Netanyahu, the country’s longest standing Prime Minister. This is not the first time that he has faced charges. And as ever, he denies them all, firmly.

Many political analysts in Israel have long felt that Bibi looks at most issues in terms of how he will be perceived by his supporters at the polls. To understand the full story, we have to remember Bibi’s core strength as a politician.

A former soldier in a crack unit, Bibi is a master communicator. He was a brilliant success at the UN in the early 1990s. On at least two occasions, he has snatched victory at the polls, when he was facing defeat. He is fully bilingual in English and in Hebrew. When briefly out of politics, he was a sought-after speaker in the private sector.

And this is the irony. Most of the police investigations into Bibi involve the media in some form or another. For example, in Case 1000, Bibi is suspected of helping Arnon Milchan to secure his commercial role in the world of Israeli TV. In Case 2000, Bibi is accused of seeking a deal with the owner of Yediot Ahronot, the country’s leading newspaper, and at the expense of its major rival.

Yesterday, Sunday, the police finally announced it was formally pushing ahead with Case 4000. Here, the Prime Minister has yet to be summonsed for an interview. However, following an investigation by the Stock Exchange, seven close associates of Bibi and / or his friend, Shaul Elovitch are in custody.

So what? Through holding companies, Elovitch controls Bezeq, which has a near monopoly of regular phone lines throughout the country. While Bibi served as Minister of Communications, there were clear attempts by the ministry to ensure that Bezeq received financial and commercial benefits to the tune of hundreds of millions of shekels, although not all succeeded. Further, there are claims that Walla, an online news agency owned by Elovitch, deliberately provided favourable coverage of the Prime Minister and his family.

As Bibi sits in his office in Jerusalem, one can understand why he feels that there is a media witch hunt against him – and his wife, who has also faced charges as to how she runs their official home. Bibi has never been prosecuted. And his standing in the polls is little damaged, for now.

For all that, there is another point here, which I will describe in three parts. First, I did not forget Case 3000, where the police believe that many close confidants of Bibi secured a large military submarine contract unwanted by the navy. Second, there are numerous other politicians and civil servants under investigation, such as Ari Harrow ,Danny Dannon and Dudu Bitan, who are or who have been part of the Prime Minister’s closest circles.

And finally, let me revert back to Case 1000, where the suspicion is that the Prime Minister and his wife received gifts to the value of one million shekels. As asked by the Minister of Education, Naftali Bennett, why would a politician need such a benefit?

At the very least, it is ethically unacceptable.

 

 

More than a few years back, when I was involved in student politics, us sophisticated hacks had a phrase called the ‘the three biggest lies’. The most prominent statement was that ‘the payment is in the post’ – a line that could never be proved and thus ensured a few extra days of financial credit were secured.

Today, as a business coach and mentor, I have come to learn that I am faced by a similar ritual, only this time played out by my clients, typically those who are owners of small or medium sized enterprises. They set themselves tasks – call them homework assignments – but I know that there are never going to be completed.

As of old, there are three tales that frequently repeat themselves. Here’s what I mean.

Lie no’ 1: I am going to create a budget.

Everyone (just about) accepts the need for a budget. Far fewer understand what that means. In one sentence, a budget centralises on one page all the assumptions of both revenues and expenses over a future fixed period of time.

This challenge comes with two requirements: First, the effort forces leaders to ask questions about what they really want to do and to prioritise. Second, they need to verify their numbers.

Some people have these skills, and patience. Many a CEO does not, but refuses to recognise the fact, until it is too late.

Lie no’ 2: I am going to create the content for my website

Similar story here. In a small set up, typically the CEO is the founder. So he or she wants to be the one to describe the operation for the website or Facebook page and in their own way. Fair enough.

This implies that they know what they want to write and also how to write it. It assumes that they have set aside the time to write it. All three conditions apply in parallel. Appreciating this fact – that writing content is a talent that not everyone possesses – is evidently not so easy for people to internalise.

And the result is that as inertia. Actually, it is worse. A poor social media presence often implies lost sales.

Lie no’ 3: I am sure that they – the potential target – will buy once they have heard my pitch

Like every other part of a business, selling is an art form. It can be learnt. However, it is not that simple. Many a CEO seem to feel that their targets will just fall into place. Sales will happen, growing slowly but surely.

I find it staggering to consider the number of clients who come to my office in Jerusalem, explaining that for them, a sales meeting is a chance to talk and show off. It is the very opposite. It is session where they should spend most of their time listening.

To rephrase: Before you educate somebody about your own game – i.e. try to sell them  something – you yourself are required to undergo a learning process conducted by the potential customer.

So, why the lies? Why do people not want to own up to what they do not know?

There is no simple explanation. Partly arrogance. Many of us are taught, incorrectly, that it is wrong to seek help. And another reason is that the business owner is trying to save time and, more importantly, money.

And with most other cases, if you lie, it costs you in the end.

I often have the feeling that when I sit down with a client for a session of business mentoring or coaching, they seem to expect that I am going to click my fingers and their worries will disappear into cupboard – just like in a Mary Poppins film. Add in the magical spiritual air of Jerusalem, where my office is located, and surely it has to be as simple as that?

They may sound a little arrogant, but that is how life can appear from my side of the table. Naturally, the truth is very different. However, what I do like is to post occasionally on twitter eminently helpful blogs from alternative sources that can inspire the CEOs of the small-to-medium sized enterprises (SMEs), who form an integral part of my working day.

What follows are three typical examples of what I mean:

Let us start with Facebook. First, the scope of this medium often escapes leaders of SMEs. They do not have time for the game. As I am used to hearing, cash flow and problem solving come first. What they are missing was succinctly explained to me yesterday by an Israeli expert in just one case study. By carefully defining the target market and launching a new video, he has provided over a dozen quality leads for a single Jerusalem restaurant in less than a month.

The changing rules of social media in 2018 were set out in a blog by Adam Hutchinson a couple of weeks ago. “Share all” on face book or a few extra stats no longer cut it. Paid ads, although the “P” word can sound painful to those on a tight budget, are the clever and brave way to go.

My second pick comes from Spencer Waldron, one of Israel’s marketing gurus. He has just written a worringly obvious blog entitled “6 storytelling mistakes to avoid“. As I commented back to him, what concerns me is the fact that while none of the points are spectacularly new, business leader after business leader repeat these faux pas. After all how many of us set off for a conference, expecting to be delivered a sleeping pill?

Here lies a clear takeaway for a business owner. Whether in a one-on-one session or addressing a larger audience, have something interesting and personable to say. Ensure that you stand out!

Finally, there is that well-worn adage that we must expect to fail in order to succeed. It is astounding how many people think that the opposite of success is failure, when that linkage only applies in a narrow context. Nick Foles, who led the Eagles to victory in the Superbowl, took the subject of failure one notch higher in a post match interview.

When you look at a struggle in life, that is just an opportunity for your character to grow…..If something is going on in your life, embrace it.

Just about every owner of a small organisation knows that leading and managing present a wealth of daily challenges. It is tough. However, as Noles has demonstrated, that is your very chance to do your best and to triumph.

Exports jumped 6% in 2017. Inflation hovers at around 1%. Unemployment remains low at under 5%. GDP growth pushes 3% or more. These are great overall indicators for the Israeli economy.

It is not too difficult to find stories of good news about what is happening in Israel vis-a-vis commerce and industry. For example, last week Prime Minister Netanyahu met with Chairman of the Board of Mitsubishi Corporation, Ken Kobayashi at Davos. According to the press release afterwards:

Israel is a major player on Mitsubishi’s map and added that they are now starting to consider investments in cyber and other areas. He noted that he intends to send a delegation to Israel soon in order to evaluate possibilities for investment and cooperation.

Looking at investments, 2017 was an excellent year. The US$5.2 billion figure represents a 9% upturn on 2016. Interestingly, Israeli venture capital was at its highest level since 2013.

Specific sectors are recording some spectacular growth.  “420 Israel-based cybersecurity companies raised $815 million in 2017, up 28% from 2016.” In the medical arena, 13 of the most significant breakthroughs of 2017 were based in Israel, as reported by Tom Gross.

However, what I find most encouraging is the continuing development of the Jerusalem economy and how it strives to become more pluralistic. Labs/02, a startup incubator operated by Jerusalem-based equity crowdfunding company OurCrowd Management Ltd., plans to invest in around 100 early stage startups.

More significantly for me is how more and more Arabs are gradually integrating into the greater economic basin of the capital city. According to Bloomberg, this is one of the prime reasons why there was relative calm in the Jerusalem following President Trump’s recent declaration on the Middle East. While everything may not be perfect as yet, salary gaps are narrowing.

It is this acceptance and transparency that is at the heart of the success of the concept of the start-up nation. Unfortunately, and in contrast, American diplomats were violently chased away yesterday from a meeting held at the Bethlehem Chamber of Commerce.

Once Israel’s neighbours learn mutual acceptance and embrace it in full, then peoples of all backgrounds will be the direct beneficiaries.

Over the next few weeks, I have been asked to give several talks in the Jerusalem area on the theme of setting up a new business. And as I have put together the presentations, one strong central theme comes through. Can you make the impossible possible?

Psychologists teach us that starting anything new is not easy. However much you plan ahead – market strategy, cash flow, team recruitment, et al – a new enterprise is full of unknowns. One single unforeseen event, such as an unexpected change in government policy or a new local competitor, and all that prior effort could be seen as irrelevant. Time to give up?

Well, not necessarily. This is when we are all required to recall the theory of “the second wind”. Yes it really does exist. Coined by William James and described in fascinating terms by Maria Popova, we can learn how to transcend our perceived limits.

Compared with what we ought to be, we are only half awake… We are making use of only a small part of our possible mental and physical resources.

There is a sporting equivalent. Matthew Syed, writing this week in the Times of London, discussed how we can become so much stronger, almost ironically, at the moment when adversity is striking us (literally?) in the face. Arguably like a new commercial enterprise, Syed states that:

When you walk into an arena, you are naked. If you have weaknesses, they are likely to be exposed. If your resolve is lacking steel, it is likely to fray just when you need it most.

Syed goes on to cite specific cases of sporting heroes who initially dived, such as Andy Murray who was humiliated by Roger Federer at Wimbledon in 2012. And Michael Jordan made a video of his defeats, so that he could succeed even faster.

As a business coach and mentor, I am often called in by those, whose ventures are struggling in their initial stages. I find that very often, they know what needs to be done to alter course towards achievement, but they lack that extra layer of confidence. I would suspect that some call this resilience. And that is where an outside voice can show them that they have what it takes.

However, they have to learn to dig oh so deep to find it. That is the point when they stop allowing the seemingly impossible to get in their way and when the business begins to thrive.

The first week of 2018 has been a challenging one for my clients. Several of those who have braved to venture into my office in Jerusalem have been forced to come up with some specific targets for the coming twelve months….and then create an action plan to reach the goal. Not so simple as it sounds.

While this is a fairly common strategy for us business mentors and coaches, I was prompted into enforcing this line approach by two very different items that came my way recently. First, Dr. Robert Brooks wrote a fascinating piece, arguing that it is never too late to set ourselves challenges. Although he did not say so, I could add this is something we should be able to apply as managers and business owners.

And then I was privileged to watch an mazing documentary entitled “Impossible Dreamers”. It revealed how pensioners in the USA, right into their 90s, wake up every morning to run, walk, or swim competitively. They seek to break records every time they hit their sporting arena.

Back in my office, I have offered these inspiring stories to my clients. Set a target. If the target is too timid, I encourage them to raise it significantly. No excuses permitted.

What is interesting to observe is the frequent push back that I receive. It is a sense of panic, almost as if they have been “instructed” or conditioned never to go beyond what others had once defined as acceptable. Yes, you could have once cast me in that category as well.

A typical objection is the ‘what if’ statement. What if I reach that extra level of sales, then this, that and the other bad thing will happen. Of course they might be right, but I explain to them that those problems can be solved downstream, not today. Either you stay where you are with low sales and thus poor profits but relative safety – the proverbial comfort zone, or you can move upwards. CHOOSE!

To be practical, let me suggest the following four steps. First, identify what income you really want to take out of your business. Second, calculate those sales that are required to drive that income. Third, create the resource model – staff, hours, advertising, etc – that will deliver your target. If the business model is sound, investing in additional equipment or whatever should not be a problem.

Finally….do not be put off by the challenges involved. Only you are the one who can define the meaning of the word “possible”. May 2018 be a year of success, health and happiness for you and those around you.

Last week, Lorde, a talented singer from New Zealand, cancelled a trip to Israel, fearing it would be seen as an act that supports the actions of the Israeli government against Palestinians. In an ironical twist, she actually ended up highlighting just how open Israeli society is.

Lorde’s justification of her decision, encouraged by BDS – the campaign which supports a boycott of Israel – is filled with hypocrisy. For example, she is still committed to travelling to Russia, whose leader has sent war planes to massacre thousands in Syria. In fact think about it. Can you imagine artists of any kind refusing to perform in …well let’s say France, because of that country’s policies in parts of Africa? And what about the UK or the USA or……? Hypocrisy!

At the same time that Lorde was speaking out, it emerged that the Israeli economy had grown by 3% in 2017. This achievement lies in parallel with the OECD average for the period. Estimates for 2018 expect a slightly improved result.

Nothing specifically remarkable in that, except when you begin to look at two of the key growth sectors. I shall start with exports, which shot up 5% in the year and topped the significant mark of US$100 billion. Two interesting facts emerged from an analysis of the figures. Israeli companies have made a massive return to the European scene, an area where BDS is historically strong. Second, of that US$100 billion, 3.5% includes items sent to the Palestinian territories.

In other words, the very people that Lorde feels she is helping are doing the opposite to her. They are sticking with the old adage that peace is usually achieved when two sides find a way to cooperate.

The other sector, which I wish to highlight is tourism. 2017 was another boom year for the industry with over 3.6 million overseas visitors to Israel. Over 50% as ever were not Jewish, and nearly 60% were first-time visitors. That is a lot of people not just rejecting the calls of BDS, but then also then sharing their stories back home afterwards. Just as pertinent is the fact that around 200,000 locals are employed directly by the industry, a relative large proportion of whom are not Jewish.

Less than three decades ago, Israel economy was relatively insular, protected by tariffs. Today, it is a start-up success, whose model is copied by France, the UK and others. Artists from all over the world continue to perform in the country, happily and openly, including the group Queen, Bryan Adams, Culture Club. Lorde’s misguided gesture only emphasised these positives, while ensuring that she remains bound up in an argument of hatred.

Israel’s Prime Minister is currently under police investigation in at least four different cases. In parallel, Teva, until recently the largest company in the Holy Land, has seen its power melt away in a sea of corporate debt. Although there is no substantial connection, the two subjects are connected, unfortunately.

Let me start with the Parliamentary scope. In recent years, several Israeli politicians, including a former Prime Minister and a President, have landed up in prison. Now the fact that the serving PM, Benjamin Netanyahu, has been questioned may be seen as the new norm. His party’s rating in the polls has barely dropped, for now.

Bibi, as the PM is known, claims innocence on all counts. And there are still no recommendations to press charges, to date, even if he has been visited several times by the police. In no order of preference, it is claimed that:

  • he received favours from a local press baron.
  • he received favours from people of wealth, possibly in return for legislative support.
  • his lawyer and other confidants ensured a submarine was bought from Germany, when it may not have been needed and this then resulted in substantial commissions paid out.
  • a friend was able to run Bezeq, the national telephone company, while he remained as acting Minister of Communications.

In addition, his Likud party has pushed through, although not always succeeded, a welter of legislation that is heavily biased towards key sectors of the electorate. And that sectorial effort had been led until two weeks ago by another confidant, David Biton, who himself is now being investigated for possible financial misdemeanours in his home city of Rishon Lezion.

I have no idea if Bibi is or is not guilty. At the very least, he seems to be surrounded by advisors, who have evidently slipped over the line of what is acceptable in public governance. In my view, that is equally unacceptable . This demands his immediate acknowledgement of responsibility, which has yet to be admitted.

Teva is (was?) the largest generic pharmaceutical company in the world. It grew from modest beginnings. It was to hit on a wonder drug called Copaxone and made a fortune from it. Based solidly in the Tel Aviv and Jerusalem areas, most of its workers and profits are located overseas. Shares in Teva were considered “shares in the State”. You could not go wrong!

When no replacement was found for Copaxone, the directors decided to expand through acquisition. After several successes, they approved the takeover of Allergan for over US$40 billion, and thus draining most of its US$5 billion reserves.

That debt has proved too much to bear. The company is to lay off 25% of its workforce, which will include the closure of two flagship factories in Jerusalem.

And who are the directors? A small group of leading industrialists, who have grown up together in the business world, many of whom have no experience of the pharmaceutical industry. They are the ones who made rash decisions, impacting on the lives of thousands of relatively poorly paid workers, while they received payment for their services way above the average wage. And this privileged group will apparently face no payback for their recklessness.

My point is as follows. Both those elite politicians and those secretive leaders of finance felt that they were so elite and secretive that they had the right to do what they want, and that they could not be touched. Ironically, in an electronic age when we have heard of news before it is made, they all simply felt they could “get away with it”.

Greed, avarice, lack of care – call it what you want, it is generation of leaders that have simply misunderstood what leadership really means. Alternatively, they knew but power corrupted their decision making. They all need to go – both lots of them – and go now.

It is an accepted fact that in most countries, small and medium sized enterprises (SMEs) make up over 95% of the economy. Israel is no exception to that rule. What makes Israel a case study to analyse is many a successful high-tech starts up has emerged from this grouping.

Just recently there have been several articles on the subject in the Hebrew press. I have pulled the numbers together and they reveal much.

According to CofaceBdi, of the 0.5million enterprises in the Holy Land, 51.5% are self employed or 1-person companies. A further 172,000 have up to four employees. Barely, 3,582 employ over 100 people.

To show how emphatic is the role of the small operation in the economy, 110,625 set ups have annual revenues of under 100,000 nis (almost $30,000). By way of comparison, the average wage is about 9,000 nis per month.

There are probably two key areas where small businesses suffer. The first is the level of bureaucracy and / or paperwork. Here the banks have made big improvements in recent years. And last week, the government announced that receiving a business license should become an issue of weeks rather than 12 or more months.

The second issue concerns local taxes. Most municipal authorities fix rates without any due consideration for SMEs. They are seen as fair game rather than a way to generate life into a suburb. For example, a business may have to pay for a sign outside their shop, fire license for the premise, and even a security tax. And if you are a food outlet, you have to add in the costs of supervision from “both” the Ministry of Health and the local rabbinate. There is even a by-law, still enforced, not allowing to prepare dough and bake on the same premises.

It is worth considering that Israel is a country of immigration. Many entrepreneurs were born overseas. Thus they have a problem with both the language and also a lack of understanding of the local corporate culture of mentality. This will be especially true in centres such as Jerusalem, where the sector of business mentors and coaches is rightly prevalent.

A positive note was struck by a report from the department for small businesses within the Ministry of Economics. In 2016, there was a 28% increase in the number of SMEs reporting an increase in profits. Just as significant, there was a 2.6% increase in the total number of businesses, an encouraging indication of the future growth expected in Israel’s economy.

In recent weeks, I have come across an interesting pattern with some of my clients. They do not seem to have a set goal, a financial target. When challenged, they even show resistance to the idea. As a business coach and mentor, I have been intrigued to find out why.

First, let me take a step back. The Facebook page of Goalcast often throws up some inspiring videos. A classic example is the boy who stuttered, grew up, left England for Los Angeles without a penny, and is now a billionaire singer by the name of Ed Sheeran.

However, the caption that captured my imagination is “I said yes, when I wanted to say no“. The video clip refers to story of a lady who has been physically abused.  What intrigued me is how I see her catch phrase inscribed – so to speak – on the faces of many of the people I meet. As I listen to them speak, whether in the comfort of their own businesses or challenged in the presence of my Jerusalem office, I see them holding back.

These are people with all kinds of backgrounds: educated or otherwise, experienced or less so, financially literate or not. What links them is a fear to set tough yet attainable monetary goals. And the key one here is a revenue target.

For example, assume you want sales to grow by 10% in the next year. In order to achieve that you have to identify potential new customers. This requires resources – time, manpower, materials. Creating that effort requires dedication, teamwork, extra coordination. And so the chain of events unfolds, as you commit yourself to the target. You begin to “own” it.

And hidden in the back of the minds of many a person is that nagging phrase “what if I do not succeed”? (One client twisted it and asked what would happen if they over-achieved?)

As I explain, there are at least three outcomes:

A) The organisation stagnates. At least you tried something.

B) You reach say 6% instead of the full 10%. That is still progress to be proud of.

C) Nothing much is sustained, but new and bigger opportunities emerge.

Given that set of potential opportunities, there should be no problem for a CEO to agree to the challenge. So why the push back? Reasons vary. What I am finding is that there can be a mismatch between intended vision and true commitment. Thus, the CEO never really intends to follow through, because they “just do not want to be there”.

To prove the point, I can relate to one young client, whom I met this morning. I told them about this posting that I was preparing. He had been asking me to set him stiff targets, because it fits directly with what he wants to do. “Yes”. He is up for it!

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