Pages

Jerusalem in 2017 – a city living up to its name

20 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

May 2017 in Jerusalem – week commencing Sunday 21st – and the city could rarely have been more busy.

President Trump arrives on Monday lunchtime, creating havoc to the traffic for 36 hours. Then on Tuesday night celebration begin, commemorating 50 years since the reunification of the city following the 1967 Six Day War. At the end of the week, the mosques will begin the calls for the month of Ramadan. And a few days after that is the holy festival of Shavout, where Jews flock to the Wailing Wall at 5.00 in the morning, as Christians celebrate Pentecost. Phew.

Jerusalem has come a long way since 1967. The period preceding that was marked by tension. The Jordanians ruled the Old City of the eastern approaches. They boarded up the gap in Jaffa Gate, one of the main routes to the Wailing Wall. They destroyed vast parts of the cemetery on the Mount of Olives, fortunately missing the tombstone of my great grandfather. In fact, when the Israeli cabinet met during the build up to the war in 1967, the minutes reveal that the participants could hear sporadic shooting in the distance.

The current mayor, Nir Barkat, has released a video ahead of the Trump visit. It is an enlightening explanation, demonstrating how barbed wire has vanished. In its place is a multicultural city that is becoming a leading centre for high-tech in the Middle East. And the proof is readily available:

  • Yarok Food Safety Fast Testing System has just secured a UN Innovation Award. The company enables fresh food producers in developing countries to detect hazardous bacteria within 45 minutes.
  • US Medical device conglomerate, Medtronic, is about to open a r&d centre in the holy city.
  • Last week, Snapchat founder, Evan Spiegel, was in Jerusalem, clearly scouting out more targets for partnerships.

The name “Jerusalem” has disputed origins. Some refer to the word ‘shalom’ or ‘peace’. Others see its meaning in the term ‘complete awe’. And that is just to give a sample of the interpretations.

However you look at it, Jerusalem in 2017 is a vibrant, open city, that welcomes visitors who include President Trump and aging rockstars. It is a united city that has so much to offer the rest of the world. I wish Trump well as he is whisked around the holy sites and more. It is only because Israel is a democracy, the single democracy in the Middle East, that he is able to enjoy such a tour.

Are investor panels biased against the female pitch?

17 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Over the past month, I have received some requests from female clients to help them overcome the bias they face from male panelists as they present at investor ‘pitch events’.

I was astounded. Here we are; Israel in 2017. A core assumed fundamental to the successful entrepreneurial sector is transparency – to allow everyone to come through and to have a chance. So why is there a problem?

Let me paraphrase their explanations. It appears that the overwhelming majority of the presenters and the panelists are of the male gender. And in parallel, any pitch event is supported by a number of pretty, youngish-looking females. And, for my clients, the male presenters look their part, many having come through the macho and pushy system of the army.

I am a business coach and mentor. I believe that I have prepared my people well. They are armed with a catchy story. Their business model is reasonably solid. They can explain the salient points of their markets succinctly. In return, they receive excellent, positive feedback all round. And yet with unvarying disappointment, they do not advance to the next stage.

There is a strong whiff of sexism in the air, latent or otherwise. So what can the female protagonist do about it? One of my suggestions is to exploit the tool of endorsements. Seek out opinion leaders or social movers who can vouch for you and / or your product. Their voice will make it very difficult for any chauvinist to play their cards.

I suppose it is an interesting question if these shakers and movers need to be male or female!

Does your business coach inspire you?

12 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

A business coach or mentor can take on many guises. When starting out a course of sessions, the question lodged in the mind of the client is often ‘will this really do me any good’?

Well, there are two angles to this question. In my view, and I have practiced the profession for many years now, much has to do with the fact if the client is willing to change. After all, they have called in the expert, because something is not quite right in the organisation. Are they prepared to move on?

In parallel, it is the role of the coach to motivate towards the ‘brave new world’. Now, some coaches are rich and famous, so that we latch on immediately to their latest words as they are twittered around the globe.

Then there are the mentalists. Call them showmen or frauds, but they have the power to inspire. Yesterday, I went to a private session with Uri Geller, he of the bending spoons fame. His message was that if you really believe with all your mental capability that something will happen and you concentrate on that subject, in certain circumstances the change will come about. Geller went on to demonstrate what he meant in a most impressive fashion.

However, for most people, they end up scheduling weekly sessions with somebody unknown, and then hope for the best. And then the onus falls on the shoulders of the coach or mentor to motivate, each and every time. It ain’t always so easy.

Take yesterday. However much I encouraged and threw out questions to the owners of a business in the Jerusalem area, I was met with a negative response. It was a case of it can’t be done, too expensive, who cares, or whatever. Then, I had an idea. I encouraged them to learn about their operation by studying successful competitors. They asked the purpose of this action. Simple, I was responded. Years previously, they had taken up a profession. I asked them how this had come about. And the answer was by studying or learning.

Amazingly, the rest of the conversation flowed.

Some achievements are prompted by an out-of-the box approach. One former client was a difficult cookie to jolt ahead. Then I had a brainwave. I returned from an overseas holiday with a token but symbolic memento of a hobby of his, a limp straw of barley. He took it, promising to go there himself. He got the message. As we finished our course of sessions, his business appeared to pick up. (And I have just heard that next month, his dream will come true.)

Then there is sport. As some of you may know, over the years, I have taken up running. This spring I completed three marathons… to my complete surprise. So far, this has prompted four people to move into the sport or go for further distances. In one instance as I was running through Jerusalem, I happened to see a client, who was stunned to watch me pushing myself forward. If this is leading by example, I am happy to take it on.

The point is that a business mentor has to find a unique method to inspire each individual client. That process is kicked off by the client themselves, sincerely wishing to change. After that, the ball switches back to the court of the mentor. that is when the real challenge comes in.

The strength (and weakness) of the Israeli economy

8 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

By all accounts, Israel’s economy is swimming along very handily, despite the complete discord between the Prime Minister and his Minister of Finance.

Israel’s economy has been hailed as one of the most robust in the world. Near-nonexistent inflation and a low unemployment rate of 4.8% have helped propel Israel to the No. 3 spot on a list of the world’s most stable and promising economies for 2016 published by the Bloomberg financial news agency. ………In March, Bank of Israel said the Israeli economy grew by 4% in 2016, exceeding projections by 1.2 percentage points and marking the most solid economic performance for the country since 2012.

Fair enough. That summary did come from a newspaper, Israel Today, that is closely linked to the Prime Minister. But let us give credit where credit is due.

An OECD report, summarizing Israel’s performance since joining the organisation in May 2010, is equally encouraging. It reveals a really strong set of macro economic indicators. For example: –

  • Israel’s debt ratio in relation to GDP stands at 62% and falling, while the OECD average hovers close to 90%.
  • Israel’s economy has grown over 23% in 7 years, about double the OECD average.
  • The average unemployment rate in the OECD is 6.3%. The rate in Israel fell to 4.1% last month.
  • Israel’s public finances have recorded a 4% annual surplus for several years, much healthier than in the rest of the OECD

 So where is the proverbial “but”?

It seems that much of the new stability, should I say additional wealth, is not finding itself to those who could do with it. Consider these numbers.

  • Israel has one of the highest levels of inequality in the world between the top and bottom income earners.
  • At 18.6%, Israel has the highest level of poverty in the OECD.
  • Only 8.6% of the GDP in Israel reaches the ‘have nots’, far below the OECD average of 12.3%.
  • Israel invests less in health and in education than its fellow members of the OECD.

Now, it is possible to argue that Israel is a special case. It has to devote extra resources to defense needs. Internally, the make up of the population is not homogenous. And so the arguments continue.

What cannot be denied is that the government is consistently failing in pulling up the lower economic echelons of society. One day, that socio-economic failure, if it continues, will come to judge us all. That economic price is often very painful.

The value of a 6 line story – ask the investor

7 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Much of my work as a business mentor in the past few months has focused around creating presentations for clientele who are looking to place themselves in front of potential investors or new clients. And the key element as a coach is to help them find a hook or a story that can be ‘thrown out there’ right at the beginning of the session.

But just why is this anecdote or narrative so important?

In a talk delivered in Israel last month, branding expert Jonathan Gabay introduced a fascinating infographic. In an average 60 seconds on the internet, he explained that there are 900,000 Facebook logins, 16 million text messages, 1.8 million snaps, and oh so much more. That is a megaload of information.

So, when you come before that investor you have to please or the client whose money you want, they too are being bombarded with stats. The challenge is for you to come up with a concise, succulent and memorable piece ditty that hits an important nerve. However, that task is easier said than done.

Sonya Davidson introduced me to an excellent talk by Professor Jennifer Aaker, entitled the “Power of Harnessing Stories”. Her central theme is that studies have repeatedly shown how “stories are remembered up to 22 times more than facts alone.”

Buried in her brief talk, Aaker hits on two major take-aways

  1. Stories encourage or empower people to act on your behalf.
  2. Your story should be your “signature”. To take that thought one step further, a story will highlight your passion, proving to your audience just why they will want to join you on your journey.

I was reminded of these points over the last few days when I separately engaged in conversation with two CTOs of different start ups, one located in Israel and one in Europe. One of them did not know who I was. Both had no idea what I could potentially offer. However, both had an opportunity over three to five minutes to deliver a “killer elevator pitch”, yet never really managed to climb beyond the first floor.

Now, I do not want to boast that I could have definitely helped either of them, but how often do they repeat those mistakes? And what about many others like them? And all for the sake of having available one golden nugget of a story.

Remember, be it reeling in new business or that investor who you want to talk to, most opportunities only come around once. The solution, be prepared, and start preparing now.

Israel’s independence and the relevance of Zionism today

3 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Earlier this week, I wrote how Israel’s 69th birthday party, the celebrations for Independence Day, reflect its amazing economic progress over the decades. In this third and final review, I want to look at one of the lesser known aspects of Zionism – how to relate to Arab minorities.

While pre-state / pre 1948 Zionist leaders fought amongst themselves, many accepted that there must be room for non Jews to play a full roll in the new country. Given geopolitical dynamics, that statement has not been easy to fulfill all the time and there is still much to be done. What can be said is that today, about 25% of the population is not Jewish and this is roughly represented in  the Kenesset, the Israeli Parliament.

How does this outreach manifest itself outside the realms of politics? I want to delve into the complex situation in Syria. The international media, even those outlets known to be hostile to Israel, has often reported and filmed how Israel has been treating thousands of wounded civilians fleeing from the battles in Homs and elsewhere.

I have read an analysis on the activity of the hospital in Nahariya. This is located near the Israeli-Lebanese border and whose managing director is Dr Masad Barhoum, an “Israeli, an Arab and a Christian – in that order“. Since 2013, the hospital has looked after about 1,600 Syrians, roughly 70% of those treated in Israel. The average period of hospitalisation is about 23 days, which reflects the seriousness of the injuries. And the cost of this treatment, estimated in the hundreds of millions, comes out of the purses of the taxpayers.

Remember, from time immemorial, Syria in its various forms has displayed nothing but outright hostility to Israel. And it is difficult to latch on to similar outreach work from Arab countries in the region. In the worst case scenario, Iran is investing its precious oil revenues in strengthening the armies of Hizbollah and Hamas, the very opposite of what Israel is practicising.

My hope is that when there is a Palestinian leadership that comprehends what this form of Zionism can offer them – as per Egypt and Jordan previously – then the path to peace can open up for all.

Israel’s economic independence

2 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Yesterday, I wrote about Israel celebrating her 69th year as an independent entity. One of the most notable signs of the change throughout the decades is how the economy has improved. This week’s commercial and financial news is indicative of that progress, and carries positive implications for the global economy.

At a macro level, unemployment is now registered at 4.2%. Few other countries an boast such can achievement in the present economic climate. In parallel, the country’s credit rating remains high. For example, Fitch has recorded it at A+.

Investments remain positive. For example, the American based agro-tech venture capital fund Finistere has announced that it will looking to create an Israeli portfolio, making large sums available. Three more Israeli companies will join 11 others and launch on the Australian stock market. And the French-German government collaboration in Airbus will set up a centre on the Holy Land, concentrating on cyber technologies.

The lesson here is clear. Israel needs to import raw materials. However, its exports to world arena are used by all.

Yet one of the most pleasing aspects of development has been in the hidden sector of the small business community. Now, it is an open secret that such organisations are often the power house of many economies, accounting for over 90% of commercial activity. In Israel, this is as high as 99%.

The number of these businesses in the Holy Land has now reached 520,000. This represents a 12% jump in just one year. They account for 61% of all of those employed in the private sector and over 70% of all new positions created during 2014 and 2015. Not surprisingly, their profitability as a whole is improving.

Looking ahead to the next year, challenges remain. There are many issues relating to infrastructure – ports, privatization, monopolies – that need to be tackled, urgently. That said, the prospects for a bright economic future in Israel remain firm,

Israel at 69 in 2017 – the meaning of numbers

1 May 2017
No comments
Categories: Afternoon Tea in Jerusalem, Blog, Business, Israel

Founded in May 1948, Israel is celebrating its 69th Independence Day this week. It is a national holiday. And the slide shows abound to reveal how much there is to celebrate.

Let me entertain you with a few stats to illustrate what has changed over the decades.

  • The population has grown ten fold from around 800,000 to 8.6 million, 75% of whom are Jewish
  • Imports and exports were calculated at US252 million and US$29 million in 1949. The equivalent numbers in 2016 were US$65 billion and US$52 billion.
  • GNP has leapt forward by a factor of 46.
  • In 1961, there were about 0.5 million salaried workers. Today, there are about 3.5 million. And for the record, unemployment is at about 4.2%.
  • 12 Israelis have won a Nobel Prize.

Independence Day is always preceded by a day of mourning, Memorial Day, for those who fell in battle or other attacks. And here the numbers make depressing reading. 23,544 have lost their lives in the services. A further 3,117 have been killed by terrorists.

And that is where we must leave the numbers. Because each victim has a story to tell. They are part of a family that has been brutally wounded. And these families together make up the nation.

In a sense, the numbers that describe the growth and improvement are a testament to those no longer with us. It is not just revenge. They represent what can be achieved when a nation focuses on peace.

And that is Israel’s message to its enemies in the region and beyond. The modern state in the Holy Land has not just shown it is here to stay. It shows others how great things can be attained by ordinary citizens whatever their background or religion.

Jerusalem and Holocaust Day – a reminder we all need

24 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Holocaust Day in Israel is usually held towards the end of April. The exact date each year recalls the Hebrew day of the desperate and tragic uprising of the Warsaw Ghetto. The BBC posted today that:

Israel’s Holocaust memorial, Yad Vashem (“A Memorial and a Name”), has been working to recover the names of all the victims, and to date has managed to identify some 4.7 million…. (and) has collected 2.7m Pages of Testimony.

Jerusalem is the home of Yad Vashem. Located towards the south west of this special city, the museum looks westwards, directly and deliberately towards the former wastelands of Europe.

You always know when it is Holocaust Day in Jerusalem. The weather closes in. The evening, when the services of remembrance begin, is almost invariably chilly. (The previous day had seen a heat wave!) Throughout the main parts of the city there is a delicate quiet, which cannot be described as peaceful. And when the sirens ring out at 10.00am sharp each year, it takes the birds and wind to break the silence.

Approaching Holocaust Day, you always wonder what more is there to learn about this horrendous event. It is over 72 years since the camps ceased to function. Isn’t it just a matter for the historians. And yet, fascinating stories never cease to emerge from the ashes, and many are to found in Jerusalem.

The Parliamentarian Rachel Azaria lives in Israel’s capital city. She recently discovered a letter from her great-grandmother. In 1933, as Hitler was sweeping to power, the lady wrote to the ailing President Hindenburg: “Is incitement against Jews a sign of courage or cowardice, while Jews are only one percent of the German people?”

If that was not brave enough – call it chutzpah – what is more incredible is the response.

Hindenburg responded to Friedman two days later saying he was opposed to violence and even included a handwritten response from Hitler on the letter, who claimed, “The claims of this woman are ridiculous lies. There was never any call for pogroms.”

Azaria owns the original letter, signed by the future dictator himself.

Not far from Azaria lives Daniel Schwab. He grew up in South Africa and moved to Jerusalem many years ago. His Facebook post today is chilling, as he details at least 12 members of his family who were murdered during World War Two. (Names can be located at the Yad Vashem registry).

Last week, Daniel’s Facebook page detailed how:

In May 1933, a young man named Rudolf Schwab (my grandfather) fled Nazi-occupied Germany. His departure came at the insistence of a close friend who later joined the Nazi Party. Schwab eventually arrived in South Africa, one of the few countries left where Jews could seek refuge, and years later, resumed a relationship in letters with the Nazi who in many ways saved his life.

“From Things Lost: Forgotten Letters and the Legacy of the Holocaust” is … an extraordinary collection of letters discovered in a forgotten trunk. (A near unique story).

(However,) here’s one of the craziest parts of the Schwab family story: Rudolph’s father Max was a loyal and proud German who served in the German army in WWI and was decorated for bravery and distinction. His commendation was signed by none other than…Hitler. Blows the mind.

And today, what do we see in Europe? Yesterday’s election result was a triumph for the right wing National Front Party of Marine le Pen. This force is riddled with anti-semites. Meanwhile, in London, Jeremy Corbyn’s attempt to gain power in Downing Street will be supported as ever by the Momentum, which the local Jewish community found many of its members to be equally loathing of Jews and / or Israel. Unfortunately, but for the wrong reasons, this too blows the mind!

And that is why Holocaust Day, especially when launched from Jerusalem, is so important. It offers a chance to remember that mankind has spent thousands of years intentionally picking out Jews and inflicting frightening horrors upon them. And that is why the phrase ‘never again” is so appropriate, when retelling and retelling and retelling these facts.

The business of the Israel business boycott

20 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Boycotting Israeli businesses has been a policy of Arab nations since May 1948, when the State of Israel was founded. Just how effective is it today, nearly 70 years on, in a period of globalisation?

The boycott has seen many forms. Initially, the Arab League simply adopted the methodology of the Nuremberg Laws from Nazi Germany. And for decades, most Japanese companies stayed away from the Holy Land. Since the year 2000, the BDS campaign has taken up the call, demanding a disassociation from anything to do with Israel, including overseas players who visit the country.

Surely, over the years, there has been an unmeasured level of success of the messages of such policies entering the minds of neutral thinking people. The result is an increased distrust or worse of Israelis for some. But more than that?

My wife was recently talking to a leading techie in one of Israel’s premier IoT companies. He frequently travels to exhibitions, where Israeli companies are sought after. Any talk of a boycott is simply a joke. Business is business, and political vicissitudes have no place. And that is good for all of us.

As proof of that, look at today’s announcement by SAS to relaunch its flight schedule between Sweden and Israel. Now the Scandinavian country is no friend of Israel’s on the diplomatic scene, to say the least. However, the combination of tourism and business disrupts those paths towards hatred.

To quote from today’s announcement coming out of Israel’s Ministry of Tourism:

The following companies (have also) announced the opening of new routes(to Israel): WOW, Ryanair, Wizz Air, Hainan Airlines and Air India………..Incoming tourism increased 24% in the first quarter 2017 on the same period in 2016.

“Boycott” was a term born in violence in the 1880s. It was hijacked by the revolting racism of the Nazis. It is now employed by the enemies of Israel, hatred wrapped in politically platitudes. Ironically, BDS has a lot of support amongst leading Swedish politicians.

Let us hope the new trade and transport agreements show the way forward for all towards peace for all.

The conflicting trends of the Palestinian economy

18 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

For years, the Palestinian economy has been a dominant theme on the minds of international politicians and diplomats. Ironically, in an era of ‘fake news’, it seems to have fallen down in the pecking order of world issues. Is that because the champions of the Palestinian cause like Presidents of Syria and North Korea are more demanding, or has the reality on the ground changed?

There is no doubt that there is increasing evidence that the Palestinian economy has been on the up for some time.

And so the list goes on. However, in the opposite corner, there are plenty of downers, not helped by the insistence of Hamas in Gaza to devote resources to war rather than basic human development. For example: –

And meanwhile, in defiance of American law and European directives, the PA continues to fund the families of Palestinian martyrs and the welfare of cell mates in Israeli prisons. Officially, this was valued at US$180 million in 2016 alone. And it should be pointed out that much of the PA budget comes from overseas donations, which means the pockets of Western taxpayers.

In truth, the average Palestinian is still very poor. The official GDP is less than that of Egypt. And yet, the weaponry of Hamas becomes more sophisticated by the month. Leaders of the PA and Hamas live a life of luxury. Corruption is never far away from the talk of the day.

It is sad to see. The Palestinian economy, that could be so vibrant as its nascent high-tech industry is testing, continues to be doomed by leaders concerned with violence rather than people.

How doves have inspired generations of Israeli techies

16 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

A recent article in the Israeli newspaper highlighted how Israel has learnt how to prevent the actions of  “lone wolf terrorists’. This subject has become pertinent across the globe, when you consider the recent attacks in Nice, Berlin, London and elsewhere. My question is what does it teach us about the world of technology and innovation.

Israel security services have developed an operations model that not only demands enhanced cooperation between the various forces. They have “built profiles of participants in the demonstrations and then, using the social networks, we follow them and carry out arrests.”

Poke that simple sentence and you will drill down into a world of geeks in military green, fighting a cyber war on behalf of their country. These people will eventually make their way into civilian life and become the founders and core teams of new start ups.

Wishful thinking?  A report from “New York data firm CB Insights lists the nine most influential sectors of cyber-security innovation in 2017 and the 30 startups that have pioneering technology and the potential to shape the future of cyber-security.” Three are from Israel. As one article recently surmised, Israeli companies are in the forefront of protecting billions of IoT devices.

Where did the impetus for this technology whiz come from? The modern state of Israel was created in May 1948. Its neighbours rejected this accomplishment and invaded immediately, the only time an official UN motion has been discarded in return for war. Jewish communities were cut off in a terrain the size of Wales. What to do?

The nascent Israel turned to its communications corps, which resorted to the most up-to-date technique available. It trained a whole squadron in doves – 3 bases, 60 soldiers and about 1,000 birds. (I would love to have seen the morning parade). They included a special “regiment”. 200 strong, they were donated by the American Jewish community of Pennsylvania, having seen prior service in World War II. With no telephone lines (and no internet), an enterprising spirit invoking a technology of old saved the day.

Although the unit was gradually disbanded during the 1950s, Kibbutz Givat Brenner has spent the past decade raising a new crop of doves. My point is that this cute, fascinating story, written up in the Ha’aretz newspaper, enables us to learn a great deal about Israel and its innovation.

When people ask me how Israelis have come to be known as a start up nation, a good part of my explanation is that it is inherent. Innovation is in their blood. Israelis have always moved ahead by being entrepreneurs. To invoke a biblical phrase at this season of both Passover and Easter, Israelis see a ‘stumbling block’ as something to go around and not a halt sign.

Does the story go away? How execs and managers continue to fail those around them

14 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business

As the week draws to a close, we have witnessed two top execs make a complete mess of handling a media crisis. Both John Spicer, the White House spokesperson, and Oscar Munoz, United Airlines Chief Executive, effectively apologised too little and far too late. The results have been humiliating.

BBC journalist Katty Kay seemed to sum up the feelings of many, when she wrote: “It’s never clear to me why it’s so hard for people to say sorry. It’s a simple word, just two syllables and its positive impact is enormous.”

Branding expert, Jonathan Gabay, raised the same issue. In an interview on Sky TV, Gabay noted the continual arrogance of big brands who try to ‘get away with it’. The more they try to cover up or ignore the issue, the more it turns into a sticky plaster. The story just does not go away, until handled fully and transparently.

Thinking beyond these stories, the lessons go further. How many of us know managers or senior employees who make a mistake and then try to bluff their way out of it. The methods vary from lying, blaming others, creating a diversion / another incident, or otherwise. But at the end of the day, it is the same. They try not to say that 5-letter word – s o r r y.

I remember a former boss of mine in a large multinational who mucked up a budgeting item, despite my warning. 12 months later, he had to account for his actions. His semantics sounded pathetic because they were pathetic. The point of this anecdote is that the manager loses the confidence of those around them. Their legitimacy is diminished. As with Spicer or the United Airlines, who can trust them?

What Gabay and Kay are calling for is very similar to my role as a business mentor and coach. When talking with my customers, I stress that in this era of immediate communication, your community and far beyond demand accountability, 24/7. Try to shirk from this responsibility and you will damage those around you, your company and ultimately yourself.

Israel; a country that helps small businesses. Yes or no?

13 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Israel is known as the land of the “start up nation”. Ergo, it must channeling a lot of resources towards helping small and medium sized companies. Right?

Back in May 2016 last year, a World Bank report ranked Israel 53rd out of 186 as a place for conducting business. “Among 37 developed countries in the survey, Israel ranked 34th: only Turkey, Greece and Luxembourg ranked lower.”

It ranked eighth for protecting minatory investors, but 56th for starting a business; 96th for dealing with construction permits; 103rd for paying taxes; and 127th for registering property, which the report said required an average of six procedures taking 81 days, and at a cost equal to 8.3% of the property’s value.

Not very encouraging. And to me this is especially worrying. I am a business coach and mentor. I have several clients in the Jerusalem area, who consider themselves in the SME (small / medium sized enterprise) bracket. And everyone knows that the heart of all national economies are the small entrepreneurs.

All this is by way of a preview to introducing the report released yesterday by Israel’s Ministry of Economics. Of the 340m shekels (say, US$90 m) awarded in investment grants during 2016, 256 million or 75% was handed over to SMEs. And of the 103 projects, 92 could be found in peripheral areas of the north or south. Well, that is more welcoming!

The breakdown continues. As opposed to high-tech, metal and plastic companies led the way with a combined 43% of the investments. The ministry has estimated that over 1,500 new positions of employment were created. Revenues increased by over 3.7 billion shekels. Very welcoming indeed.

However, for all the healthy numbers is this enough? A good start, maybe, but the answer has to be a resounding “no”! To make my point, this time I shall resort to anecdotal evidence from some clients of mine.

Story 1: He had a short-term cash flow issue. The bank rushed to the rescue with an immediate 18 month bridging loan. Fine, but afterwards I checked the terms. The rate of interest is 11%, in a country with near zero inflation. Crippling!

Story 2: I have several clients who have applied to government schemes for loans. Most are giving up, as the peculiarities of their circumstances means that they cannot triumph over the paperwork. Pathetic an demoralising.

Story 3: Receiving all the necessary licenses required for a food business – a restaurant or a manufacturing facility – is almost fatally bureaucratic. As my clients tend to find out, the rule of thumb is to start operating and then hope things work out. And when you think about it, that process makes a nonsense of needing the licenses in the first place.

Where to now? Well last year, the government set up a committee to look into relieving bureaucracy for small businesses in Israel. I believe the team has yet to report. Need I say any more?

Hiring the right candidate – can you rely on them?

12 April 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

In my work as business coach and mentor, I engage with many CEOs or company leaders. One of the recurring themes is when they ask for my input on hiring somebody. They want a quick ‘yes or no’ answer.

Now, we all know that hiring is a complex issue; qualifications, experience, initial chemistry and so much more. Then there are ‘environmental’ issues. For example, many of my clients are based in the Jerusalem, which provides a host of cultural issues.

Wading through this mess of computations is David Schulman, whose analysis is featured on the BBC. He gave an interview test to over 800 criminals convicted of white collar crimes and also to thousands of ‘decent people’. Guess what? “The criminals scored uniformly worse in accountability, conscientiousness, and empathy.”

Shulman’s point is subtle but clever.

Most of the time, we determine whether we think someone is honest by our impression of them, for instance, by asking a series of questions during the hiring process, or by how they conduct themselves during everyday business dealings. But, that’s not foolproof.

What I found particularly fascinating was how the BBC went on to cite the work of Nilan Peiris, a VP in a fast growing financial centre. He loves asking a question that will usually generate a small white lie. And here is the punch line:

“And I say, ‘OK, that’s not true. What’s the real reason?…… If they’re able to open up and be honest with us, then that tells us that they’re ready to go on to the next step.”

In other words, honesty is a key part of the process of many interviews. However, it is not something that can be readily measured. (And I have not even discussed those who ‘accidently on purpose’ miss out core information.) As ever, what is essential is that each interview contains a specific test or set of questions that will force the candidate to reveal their strengths on key characteristics.

Branding? Positioning? And the truth in between

31 March 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

A former client of mine from Jerusalem posted an interesting question this week on a chat line: What is the difference between “branding” and “positioning”?

Several clever answers were entered. To sum up, although rather glibly: Positioning is where you want to be vis-a-vis potential clientele. The branding will show you how to get there.

What was interesting for me is that I have seen two other postings, on Facebook, referring to this same issue. However, on both occasions, these were actual case studies. As I business mentor, I think they deserve a far wider audience.

In the first instance, an 86 year old American sent a letter to her bank. A customer for years, they had bounced a cheque of hers. She did not close her account, but told them that from now onwards, she would treat them as they had treated her. As she explained: –

  • I, like you, choose only to deal with a flesh-and-blood person. My mortgage and loan repayments will therefore and hereafter no longer be automatic, but will arrive at your bank, by check, addressed personally and confidentially to an employee at your bank whom you must nominate
  • Be aware that it is an OFFENSE under the Postal Act for any other person to open such an envelope. Please find attached an Application Contact which I require your chosen employee to complete. I am sorry it runs to eight pages………
  • I will issue your employee with a PIN number………….

And so the letter went on.

In other words, the bank’s actions had told her, where she was going to be positioned. Her branding of herself did not allow her to accept for such actions lying down, especially and ironically as it went against the bank’s own messaging.

At least the branch manager was clever enough to send it to the New York Times letter page.

And now I want to address the fascinating positioning of the London branch of the New York advertising firm “Grey”.

Grey London will become Valenstein & Fatt for 100 days, named after its Jewish founders Larry Valenstein and Arthur Fatt

It turns out that the original founders had wanted to hide their Jewish roots in order to secure more business. A century later, the British team has decided to choose the opposite road. The reasoning is fascinating.

First, it is a calculated knee-jerk reaction to growing xenophobia on both sides of the Atlantic, particularly after the terror incident at Westminster. Second, racism in seen to result in narrow thinking, the opposite value of what an advertising agency is all about. Third, I can but assume it is a very distinct way for Grey (or V&F) to position itself beyond its competitors.

What is left for us to learn from all of this. There are many wonderful books on marketing. You can earn a doctorate on the subject. But for all the theories just never forget that you must attempt to treat all of your customers all of the time as you would want to be served.

Developing economies of peripheral regions – Intel’s Israeli model

29 March 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Just about every country in the world has a problem ensuring that economic prosperity reaches peripheral areas, away from core population centres. In Israel, Intel has developed a very enlightening approach that is clearly making a difference.

Intel’s overall contribution to the Israeli economy is well-documented. For example: –

  • Intel exports from Israel totaled around US$3.35 billion in 2016.
  • Intel has purchased around US$10 billion in the past decade from local suppliers, with 80-90%  bought from small and medium sized enterprises.
  • It has contributed millions to local causes.
  • Intel has just paid out US$15.3 billion to take control of Mobileye, located literally just down the road from its own Jerusalem fab.
  • And as the Jerusalem plant is nearing a refurbishment, the value of investment in its own plants in Israel over the years is estimated at around US$11 billion.

What is also interesting to learn is how the chip conglomerate also looks after those areas of society not located in the centre of the country.

The company has four plants in Israel. Excluding the site in Petach Tikvah, three are located in what are considered development zones: Jerusalem, Haifa and Kiryat Gat. Thus, 80% of the work force comes from outside the statistically better-off population areas.

In another field of activity, about 40% of Intel employees volunteer in community activities. Significantly, they are involved in about 70 schools in the north of the country, out of sight and sound of the media.

These activities on their own are not enough to resolve the economic woes of the north and south of the Israel, which have historically always felt geographically and commercially isolated. However, they indicate a way forward for the Jerusalem based bureaucrats and politicians to learn from. It is probably a lesson for other countries as well, when it comes to formulating regional economic policies.

Israel’s PM – when a tax cut was actually a tax hike!

20 March 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Intel’s purchase of Jerusalem-based Mobileye for US$15.3 billion is an unexpected and very grateful windfall for the Israeli Ministry of Finance. A little under 10% will end up in the hands of civil servants, say about 4 – 5 billion shekels.

The question is what to do with the cash. Some say spend it on large infrastructure projects or the financing of social schemes for weaker communities. Others, and the more vocal camp to date, favour tax cuts.

It is no secret that both the PM, Binyamin Netanyahu, and his Finance Minister, Moshe Kahlon are in the latter camp. That said, they have become as political enemies, especially in recent months. In fact, events have become so heated behind the scenes that Netanyahu did threaten this week to pull the plug on his coalition cabinet and to force a general election over their disagreements.

Netanyahu has a long history of proclaiming that he advocates lower taxes, although he is rarely active in that arena. Sometimes, the opposite seems to be true.

However, for a moment and in order to give us some perspective, let us look at some comparative figures. Again, the assumed key number is 4 – 5 billion shekels.

If Netanyahu were to call an early election, the cost to the country is estimated at around 2.5 billion shekels. And that will be cash to pay for the machinations of the political system, diverted away from the needs of the public at large. Potentially very disappointing.

More than that, in order to put together the current coalition and massage its ego, it is estimated that the political maneuverings cost the country, annually, about 7 billion shekels. This includes about 1.6 billion towards childrens’ saving schemes, a further billion for the ultraorthodox education system and 650 million to subsidise bus fares.

So, if you were to cut rid of these schemes, by just how much would corporation tax drop and VAT be reduced? How would income tax be adjusted downwards for the middle classes? And how much would all this boost the economy?

I will not answer my own questions. What I did read is that any immediate tax changes will be delayed about a month. That way, the government can ensure a full collection from VAT one last time! Pathetically ironic, but this does show how the top politician is feeding his electorate a load of ……spin.

Pushing the boundaries at work: 3 Israeli case studies

15 March 2017
No comments
Categories: Business, Israel, Jerusalem

When called in as a business mentor and coach, my role is often to enable the client to do what they see as the impossible. After all, in many cases, if they could do it by themselves, why do they need an outsider to help?

Youtube is full of video clips, showing how individuals with physical handicaps achieve the most amazing success. One of my favourites is the young Australian ballerina, who refuses to quit despite losing a leg in an accident.

However, the question is what can the rest of us learn from these champions?

The answer is very obvious to my mind, but not so easy to implement. We should not just view the downloads and then marvel. We should realise that each and every one of them dug deep and found something that made them demolish accepted boundaries. So what are such demons in our own lives and how can we demolish them?

To show you what I mean, I have picked out three recent case studies from Israel, an environment where I practice my trade. I think we can all take a little bit from these stories.

First, the massive deal that was announced earlier this week, where by Intel will purchase Mobileye for a cool US$15.3 billion. With some irony, Intel’s Jerusalem plant is just down the road from Mobileye.

The founders of Mobileye come from different backgrounds, including academia and the car trade. One of them, Ziv Aviram, who could be walking away from the deal with around US$250 million before tax, started out life working as a logistics manager in a troubled printing company, Keter. From there, he went on to manage a tourist attraction in the Dead Sea.

And this week? Aviram’s company saw their shares leap 30% on NASDAQ. As the leaders of Mobileye mentioned on release of the news of the deal, it is not just about the money. It is about how you can change things for the better.

In a totally different sphere, Israel is performing for the first time in the World Baseball Championships. Rank underdogs, the team won its first four games in a row. This included the destruction of leading sides such as Cuba and South Korea.

While some have compared the heroics to that of the Jamaican bobsleigh team that won a gold medal, I find an alternative explanation. To me, it is clear that somebody sat down and said “how can we make this happen, despite all the odds and history stacked against us”. He or they then saw it through, come what may.

Which I suppose brings me to my third story, and this time it is about myself. I have always loved sports, but never been too good at anything. However, in two days time, I will try to complete the marathon in Jerusalem, one of the more difficult routes on the international circuit.

I will not bore you with the history of how I started running and who convinced (conned?) me to do this. What is relevant is the “why”. The answer has to be that I can show to myself what I am capable of rather than merely complete what I believe that people have expected of me.

And “that”, whatever it may be, has to be worth far more than just a personal best time. I hope you too can find it in yourselves.

 

Israel’s economy – stranger and stranger

10 March 2017
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

How many countries in the OECD would be jealous of such economic news?

These are three amazingly positive figures. Even for a skeptic like me, who has constantly argued that there is a massive problem with the distribution of new wealth and that the government lacks an economic plan, this is good news by most parameters.

So what has been going on?

As previously reported, exports turned upwards in the second half of 2016. The country is even beginning to send gas to Jordan. What is more remarkable is that this comes against the background of the continuing strength of the shekel against most major currencies. It has appreciated by 8 – 10% against both the Dollar and the Euro.

Regarding the extra money for the Minister of Finance, this comes from both direct and indirect taxation. The rise in wages has added an extra 10% in income tax collection. The 44% leap in car purchases since February last year is one of the prime causes for a surge in VAT collection. (VAT is collected on most imports).

Naturally, all this is improving Israel’s credit rating. This in turn allows both the government and financial institutions to raise capital on the markets overseas.

So, where is the extra dosh going? Well, there are rumours of tax reductions. Fine by me, provided it is not just for those at the top of the greasy poll.

However, so far, it is the ‘big guys’ who have benefitted. All government ministries are spending more in 2017. The outgoings of the Ministry of Defence have grown by nearly 11 billion shekels, an additional 24% since 2016. All the other ministries have grown by 5% when combined together.

Without doubting the pressing needs of the military services, it is sad how the government in Jerusalem yet again has failed to help those ministries that are there to look after the weaker sections of society. I look forward to hear how the civil servants intend to address that issue in 2017, but I am not too hopeful that they will override the vested interests.

Client Feedback

"Michael transformed the way I think and approach working, and also how to monetize my social media and communal projects."

CEO of digital media company

"Michael helped my high tech company take off."

CEO of clean energy start up

"Michael has been an invaluable resource to me throughout all of the steps of starting up my business."

Art Studio owner

“Working with Michael Horesh is like having root canal treatment, marriage counselling and business coaching all rolled into one, successfully.”

CEO of digital media company
CEO of clean energy start up
Art Studio owner