Earlier this year, I wrote about Emblaze, a typically successful Israeli hightech company, but which had found itself plunging towards disaster. I cited the reasons of poor management and hinted at an arrogant corporate culture.

Many have argued that similar approaches were prevalent amongst corporate and mortgage bankers in America. And in Britain, the government has been found wanting, trying to buy its way to growth while revenue was drying up. In all these sitations, sooner or later, somebody realises that “the king is naked”, and thus begins a very painfull fall out.

Correspondence with a gentleman, named Colin, has brought to my attention that Emblaze has turned itself around. He claims that much has to do with the role of Guy Bernstein, the CEO, establishing new commercial relationships.

As I wrote to Colin yesterday, it is always interesting to see how companies overcome the seemingly insurmountable. Lo and behold, in today’s Hebrew newspaper, Yediot, there is a listing of several Israeli companies, who have pulled themselves away from bankruptcy.

The companies are located in the clothing, food and retail sectors. And for all the unique stories and internal processes, they have common themes.

• Most were bought out, but the basic concepts have been retained
• Most have benefitted from a merging with other logistical systems, resulting in significant efficiencies.
• Most have benefited from a small injection of money.
• They all reaped the benefits of a strategic management team.

Bottom line: In a year of economic recession, they have survived, expanded, taken on new staff. It’s smiling time again.

And the lesson for senior management? The phrases of arrogance, resting on your laurels, complacency come searing to the surface.

The recovery programmes implemented were clearly not that difficult nor complex (although probably painful). Generally, the previous set of owners had misread the dynamics. It would appear that for a business to maintain its success especially in a downturn, it needs to have in place a mechanism to further management creativity and innovation.