BDS – Boycott, Divestment and Sanctions of Israel – has been around for about 15 years in its present structure. Formally, it calls on the world to punish Israel on behalf of the Palestinians.

There is no doubt that its politically correct slogans have attracted many to its cause. Occasionally, a pop group may cancel a tour of the Holy Land. A company may reduce or cease trading with counterparts in Tel Aviv and Jerusalem.

On the other hand, as I have repeatedly pointed out, it is a movement founded upon hypocrisy. Its leader studied at Tel Aviv University with all facilities open to him. It is a movement that fails to condemn human rights abuses by Palestinian leadership. Above all, it is not looking for change in Israel, but its obliteration from the map.

In the past year, there has been a wake up move, rejecting the fallacy of the BDS argument. Four Spanish cities have reversed resolutions, which had called for sanctions against Israel. A guitarist from the Bruce Springsteen outfit notoriously used an expletive to dispel any notion that he would support a ban on visiting Israel. And foreign investment continues to pour into the Holy Land, as the seen by the growing list of over 350 multinationals with R&D centres in the country.

In parallel, it is fascinating to note the increase in demand for space in industrial areas, located in the West Bank. Ostensibly, these would be the first companies to be face boycott calls if their exports were to reach overseas markets. And yet, we learn that the opposite seems to be true, especially when the trade is directed to the very countries BDS supporters had seen as natural allies; China, India and much of Africa.

It is noteworthy to look at the Barkan region, where there is a waiting list of 60 factories. Many of the current facilities ensure that Arabs and Jews work together. And by law, all employees have to receive full employment benefits, which far outweigh anything offered under the Palestinian Authority.

BDS is replete with the bile and hate of the worst elements of politically correct movements. It has impacted on specific individuals, companies and artists. Fortunately, it worst aspects seem – for now – to be over.

As a final thought, maybe if Israel’s detractors would lay down their weapons, then the Palestinian economy would achieve the  3.8% economic growth that Israel reached in 2016. Now that would be a true and direct benefit to the average person on the street in Gaza and in Nablus.

If Israel is the start up nation with just 8 million people, then in any given week, thousands of presentations for investors are being prepared.

What colour, which font, background graphics, the order of the slides – the guidelines for all of these issues have been well documented in countless blogs. What I want to share here are six key ‘must dos’ that should drive your presentation, making it relevant and ensuring that your audience will listen.

  1. Each slide has to carry a targeted message. In today’s business climate of immediacy, few have time for cute effects and background noise. Get to a point, and quickly.
  2. However large your deck – somewhere between 10 and 14 slides – make sure that it tells a story.
  3. What makes for an interesting story? First, early on, throw in a hearth throb of an anecdote. Second, throughout the pitch, tell the audience how they can make money! The technology, service or product may carry a ‘wow’ factor, but you need to show a business model with a clear path to a return on investment.
  4. Whatever your order of slides, the last one should have a take-home message. Not only is this a summary of the opportunity, but it conveys how – and why – the audience should act next.
  5. Rehearse your presentation. And when you have done so, rehearse and then rehearse again. Good actors do not fluff their lines under any circumstances. It is a convincing performance.
  6. While you are rehearsing, remember that you do not have to stick to the original slide. If your verbal flow and logic does not match the frame, then you need a quick rethink.

Quite often, it is the slide that needs to be changed as opposed to your words. The reason? Because the image does not help the potential investor show how they will double their cash. And that is why you are in the room in the first place!

Good luck.

Is the Israeli high-tech bubble about to burst?

On the one hand: There were 55 exits in Israeli high tech from IPOs and mergers and acquisitions totaling $3.5 billion in 2016, down 67%, compared with $10.69 billion in 2015. The number of deals also fell from 70 in 2014 and 2015, according to a report of exits by the PwC Israel accounting and consultancy firm.

However: 2016 was a strong year for Israeli technology companies in raising capital: $4 billion was raised in the first three quarters of the year. $200 million was raised in December and $620 million in the fourth quarter, while $4.3 billion was raised in 2015.

All the anecdotal evidence points to 2017 being another strong year for the Israeli high-tech scene, the land of the start-up nation.

  • Despite upward pressures from USA and elsewhere, the Bank of Interest is not looking to raise interest rates in 2017, and thus making it easier to secure funding.
  • Corporation tax is to be lowered to 24%
  • A new Innovation Authority is to be set up, headed by the former boss of Apple Israel, Aharon Aharon.

On the ground, there is a tremendous amount of activity. For example, last month HP canned a project overnight, which led to 200 or so redundancies in Israel. Many of these people are already well on the way to securing new positions. In another scenario, I know of one CEO who is so short of software engineers that he is considering the possibility of encouraging professionals to relocate from Western Europe.

The web is full of blogs pointing out Israeli high-tech companies to follow in 2017. And this follows on the success of 2016. As I have mentioned before, a key sector to watch is the support for the global manufacturers in the car industry.

And the investments themselves have not ceased over the Christmas holiday period.

  1. A US$2.5 billion dollar Chinese investment company, Yiling, has just sunk US$20 million into HealthWatch, a smart Israeli clothing outfit.
  2. Snapchat has made its first venture into Israel, picking up the augmented reality (AR) start-up Cimagine Media for about US$40 million.
  3. Qoros has announced that it will set up a smart car r&d centre in Israel, adding to the approximately 350 other conglomerates present in the Holy Land.

So, yes, there may have been fewer large exits in 2016, emerging from Israel. However, the growth projected for high-tech in 2017 is encouraging yet even more overseas players to join in the fun. Happy New Year!

Like the song in the Sound of Music, 16 going on 17, Israel’s economy seems poised to have another year of success.

Contrary to the predictions of many pundits, the statistics coming out of the Holy Land for 2016 really rock it. Boasting a 3.5% growth spurt, the Bank of Israel has calculated that the standard of living leapt by 2.9%. Unemployment dropped to a record low of 4.8%. Private consumption was up by 5.9%. Per capita growth rose 1.5%.

To paraphrase one of the skeptics, Sever Plocker, the upturn has secured a stable currency. In turn, the ration between GDP (the size of the economy) to the country’s debt has fallen to just over 60%. Most European countries are nowhere near this excellent level, which was actually a target set to met in about ten year’s time!

As for next year? Growth is set for a further 3.2% jump. Corporation tax will drop by one per cent to 24%. Income tax for the middle classes is to be reduced. The amount of guaranteed holidays for lower grade workers will increase. And the Tel Aviv stock market, which was stagnant in 2016, is projected to move up about 8%.

The stuff of Disney tales, indeed. Most of the OECD countries would settle for even half of all of this good news.

Unfortunately, beneath the headlines, there is another economy. The other stat that caught my eye last week was that approximately 20% of all Israeli families are looked after by social services. This includes 50% of those aged over 75 and nearly 23% of children aged between 12 and 17. Unacceptable.

Israel is a country of two economies!

In many other countries, that state of affairs could be seen as a threat to social stability. In Israel, the situation, as ever, is more complex. And if I can generalise for a moment: Ultra-orthodox Jews tend to have large families, yet tend to live modestly and are supported by an extensive system of charities. And large Arab families are still far better off than others in neighbouring countries such as Lebanon, Jordan and Syria.

Nevertheless, it is not a situation that should be taken for granted. More highly religious Jews are entering the workforce. There are schemes to encourage high-tech start-ups in the minority sectors. That is not enough, and the country faces key structural challenges that hold back progress.

  • The price of housing leaves most young couples firmly outside the game.
  • Regulation is prevalent and increasing, acting as a drain particularly on the SME sector.
  • There is a glaring lack of competition in the banking sector.
  • Food prices are kept high as interest groups keep out foreign competition.
  • The ports have yet to be privatised, thus ensuring continued inefficiencies and unnecessary costs passed on to the consumer.

I am sure that 2017 will turn in another set of fine numbers at a macro level for the Israeli economy. Mazaltov! My fear is that more and more people will be left behind in the process. In that scenario, there is rarely a happy ending. More needs to be done to ensure that this progress is enjoyed by a greater number, and not just the privileged families running the government.

It’s early January. Time for a quick meaningful resolution to kick off the new year. Do you dare yourself to name it, and then – possibly even more challenging – to keep to it? So here’s a quick tip for you to be absorbed along with all that festive cheer.

Knowing your limitations” was a very successful blog post in 2016.Absolutely!

However, I do not believe that is the best starting place for CEOs and senior managers. What I look for as a business coach and mentor is to show people how they can tackle ‘territories’ or issues that had previously seemed totally out of reach.

Let me give you two examples, one personal and one practical. First, I have just reached a sporting landmark, which all my life I had considered available only to the few and the strong. As I explained to somebody this morning, it was not that I considered it impossible. I just never conserved the matter per se, that is until I began to work out a strategy, appreciating how setbacks along the way could be turned into triumphs.

Similarly, many a sales person writes off whole groups of potential clientele, as they are seen as no-go territories. It’s just that “feeling” inside you that instructs you to behave negatively. So many execs never come around to testing the theory. And thus revenues are lost, because you have glibly accepted a perceived weakness.

A new year is a convenient marker to rethink – to approach commercial (and private matters) with an different perspective. And one key question to ask is if you are really unable to go for that important client, to resolve that annoying staffing conflict or to tackle the troublesome bottleneck in production? Are you that weak or is it that you have yet to travel that extra and painful mile – yes, a deliberate sporting metaphor – to find the answer.

The choice is yours, as are the potential rewards and benefits.

December 2016 – It is nearly time for those end of year celebrations; Christmas and Chanukah fall on the same day this year. So lots of candles to light.

The economy of the Holy Land also stands brightly. I have not hidden my complaints about how certain population sectors have been ignored during recent booms nor how restrictive practices remain in place, such as in the ports. That said, just have a look at this impressive list of achievements as we prepare for a new year.

  1. Israel’s economy is growing at a little over 3% per annum. This is a real increase, factoring in the rise in population. Further, it is close on double the average rate for the OECD.
  2. Unemployment is at a 30 year low, around 4.5% of the work force. Again, this is a stat that other countries can only be jealous of.
  3. Despite a rise in the cost of commodities and the internal growth mentioned above, Israel has managed to ensure that inflation has been kept within reasonable and acceptable limits.
  4. Looking ahead, a strategy is emerging to lower taxes, particularly in the corporate sphere. This will encourage direct foreign investment and thus feed into further growth.
  5. The Palestinians are also set to benefit from this good news. An additional 22,000 daily work permits will be issued for them to cross over from the West Bank and from Gaza. (It is just a shame that they refuse to reciprocate and formally allow in Israeli exports, which would enhance the peace process).
  6. Jordan too is expected to benefit. It will receive cheap gas from new reserves developed by Israel. Jerusalem also intends to double its supply of water to the Hashemite Kingdom in the next few years.
  7. Large conglomerates are continuing to invest in Israel. I mentioned last week that Microsoft is about to invest US$0.25 billion in a new campus, just north of Tel Aviv. GE, BMW, Tata are just some of the other world leaders that have been in the news during the past month, when it comes to extending their activities in Israel.

All in all, 2016 has turned out well for the Israeli economy. I just hope more people can be part of that triumph. Meanwhile, there is cause for optimism regarding 2017.

I strongly urge you to read about the “21 coolest tech start ups in Israel“. This is not an isolated item. For example, “27 Israeli companies are included on this year’s Deloitte Technology Fast 500 EMEA list, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences and energy tech companies in Europe, the Middle East and Africa.”

Whichever way you split, Israel remains that much talked about ‘start up nation’. But why?

We all know that economic or commercial success comes in waves. Israel’s change of fortune can be traced back to the mid 1980s, which is now a full generation ago. In that time, Israel has gone through two Intifadas, fought several campaigns on its borders, and survived at least two global turndowns. Despite that, GDP growth – based partially on high-tech performance – is predicted to come in at around 3% or more for 2016 and 2017, one of the better performers within the OECD group.

However useful this information is, it does not explain the culture of innovation in Israel. What is it that enables Israelis to see through established markets and then go on to create a disruptive technology? Discussions over the influence of the army etc are well documented on google. I will base my answer on a true story, emerging from within my own family.

My son has just started university. Not an outstanding student at school and after his obligatory stint in the army, followed by a tour around South America, he appeared to settle down to his first year of studies at university. Then, out of the blue, he asked me if I knew of a certain application that allows you to present new ideas to investors. And that was our first inkling that something was bubbling.

The next thing we know is that he applied to be considered for an accelerator. At this point, he shared his concept with us. Where had it come from? It was an area of commerce for which he had – to my knowledge – minimal experience. And I was correct, except that his one small, seemingly minor encounter had been enough to prompt him to think.

My son is not a high-tech freak. He has not learnt code. Gadgets are fun, but he does not have to have the latest new mobile every six months. And yet, he has grown up in an environment – school, the home, the army – which has encouraged him to challenge the accepted. He is also a very obstinate young man, as are many Israelis.

And thus, when the accelerator rejected him at the last moment, he pressed ahead. He looked for help from a partner. When his immediate surroundings could not help him out, he turned to Facebook. In particular, he sought out pensioners with the correct experience and who are looking for a new or challenging project in life. My son has since linked up with an individual who has spent a lifetime bring concepts through to commercialisation.

What happens next, we wait to see and learn. Clearly, my son and his generation in Israel has absorbed a culture that allows to do just what Star Trek wanted from us in the 1960s….”to boldly go where no man has gone before”.

The phrase “fail fast, succeed faster” is thrown around in the entrepreneurial, particularly by people embracing the lean concept of creating a business.

However, in my role of business coach and mentor, I have come to realise that few executives truly appreciate what it can mean for them. Today, I can across two examples, which clearly illustrate how each and everyone of us can benefit from this train of thought.

Case study number one – “the phone call”. It is amazing how frightening a simple phone call can be. For some people, especially when it comes to cold calling – calling somebody you do not know – this is simply no-go territory. They put it off.

Yet again, I was sitting with a new client, who told me that they had run out of leads. I have two standards responses in this scenario. I ask them if they have completed their list of calls to make for the day, before sitting down with me. Almost invariably the answer is no and nearly invariably the reason is connected to procrastination.

In addition, I encourage them to start looking through their contacts list on their mobile. Who can they call? The immediate response is ‘nobody’. Yet, once the task is completed, the client has had to swallow their words.

What reminded me of this was a posting today on Facebook by a former customer. He had picked out a two minute video by Steve Jobs. The king of Apple made a phone when he was twelve years old, that was to change his life. His message? If you never ask, you are unlikely to fail. There again, you are unlikely to succeed. “You have got to act”!

Case study number two is all about trying to see that which your eyes are hiding from you. For example, I met up with some scientists, who had started out by investigating a cream for the skin for the forehead. Uncertain what the results of their first trials had revealed to them, they consulted with an expert. Apparently, they had discovered the basics of a cure for a disease impacting on millions around the world. Time to write a business plan!

Very often, the core reason why people do not progress in their business venture is that they do not believe in themselves enough. Why? Well, each of us carries our own past.

As Jobs and others show, if we are just prepared to move a touch beyond our supposed comfort zone, we may not triumph immediately, but we are likely to get there eventually.

Karnit Flug, the Governor of the Bank of Israel, was very clear in her most recent survey. Israel’s economy is doing well.

Unemployment is well under 5%. New trade markets are being developed, as European partners continue to struggle after the credit crisis fall out. FDI investment continues to turn up.

Just look at some specific recent key-note successes: –

  • Microsoft is about to rent invest around US$1 million per month in rent for new office space in Herzylia just north of Tel Aviv.
  • BMW has announced plans to set up an r&d centre in the Holy Land, via its tech arm “Here”.
  • Tourism in November 2016 reached an all-time high for that winter month, over 30% better than the same month last year.
  • And if I had mentioned exports, Israel’s innovative approach to commerce is to allow it to tap into a US$0.25billion international distribution market for market cannabis.

On the structural side, as ever one cannot be complacent. For example, just look at my SME clientele that are swamped with needless paperwork when applying for a loan. Land prices remain high, thus ensuring that young couples are often left out of the bidding process  for homes and that office space in the big cities is hard to find. And the prices of basic food staples are driven upwards by monopolies so that the less well off stay…….less well off.

Karnit Flug has done a great job is keeping monetary policy stable, even when banks in great economic powers like Italy are struggling. That is the main role of any central bank. It is now up to the politicians in Jerusalem to rise and to meet those standards, as they determine the fiscal policy and budget for 2017. Why am I not over optimistic on this front?

Last week, I challenged you to ask if your business is really making the impact you are looking for. The subject came up again last night, as I was moderating the monthly meeting of the Jerusalem Business Networking Forum. An excellent audience, filled with entrepreneurs, several were clearly looking to know how to “get into the heads” of target communities.

For example, I met for the first time a young couple, with whom I am about to start some business coaching sessions. Their immediate concern is how to pitch to investors.

I posed to them the following connundrum. Can they create a 45 second generic statement that contains these four points?

  • We are doing XXXX.
  • We are doing by using unique tech YYYY, which helps ZZZ market
  • We arrived at this adventure, because of s0-and-so, …………..a unique and emotional story.
  • And if this tech had been available then, they would not have had to suffer / sales would have been more significant / or whatever other strong benefit.

The beauty of this approach is that your elevator pitch now contains a ‘wow factor’. Your listener is forced to internalize and consider your offering. If the audience understands nor hears anything else, they will not forget these key messages.

Let me give you a more concrete example of what I mean. A client of mine, Sonya Davidson, pointed out to me a very powerful video on the BBC website. You cannot fail to be impressed with the results, as well as the feelings of the key players.

You clearly react to the message within about 20 seconds of the 3.5 minutes clip . The issue is right there, as is the pain. The scale of the market becomes obvious. And the cavalry – the solution – can be made available to many many others, and in real time. It is worth watching.

Creating this 45 second formula take time and practice – a lot of practice. I have invariably found that the results are rewarding. And that is called ‘impact’.

As an executive business coach and mentor, I am often posed a familiar challenging question by a potential client: “Why should I use your services?”. What they do not realise is at the same time, and more crucially for me, I am asking myself: “Do I want to work with you?”.

Let me explain the conundrum through four brief case studies, and a ‘curve ball’.

I found myself brain storming over my current crop of clients. I began to understand that four of them, while in totally differing commercial sectors, had similar characteristics. (For the sake of anonymity, I shall describe all in the male person and in the Jerusalem area, although this may not be accurate).

  • Alex is an academically brilliant person, who has been practicing medicine for years. He frequently interrupts me, because he believes  – usually incorrectly – that he knows how to respond before I have finished my statement. His business has known better days, but he feels he knows what needs to be done. How can he improve his sales flow?
  • Bert is in the wellness sector. Highly experienced, but again struggling for new clients. However, he has been refusing to come up with new ideas.
  • Colin is young and dynamic. He is seeking to creating a marketing agency in a field that is incredibly competitive.
  • David is a painter. Talented and ambitious, he gives the impression that he feels clients should find him. He does not want to have to chase the money.

Different people. Contrasting backgrounds and ages. Each looking to move ahead in their own field of commerce. And each one has turned to me. Why? Because, for all their excuses and bravado – some more than others – they are stuck. they are not doing what they want to do and make money from it.

Yet despite their diversities, my role is similar in each instance. I am there to motivate them!

Motivate them to do what? First, to accept that what they have been doing to date does not work well enough. And thus second, to encourage them to change. Third, to explain that what they may see as obstacles can be overcome, again with a innovative approach.

In contrast, let me introduce the curve ball. Every now and again, I am contacted by somebody who just wants one session, because that is what they feel is needed to move ahead. This is when I ask myself if that person is really interested in changing. My experience dictates that such a move does not come about in an hour, as I wave a magic wand.

Alex has learnt to accept that his many talents and clever responses do not drive a successful business model on their own. Bert has found a new form of “wellness” for himself, which is seemingly encouraging to search for clients. Colin has preserved, developing new revenue channels. And David, well early days just yet, but the game is on and he knows it.

Change is a process. Most of us appreciate that it needs to eventuate, and many come to the difficult conclusion that we cannot do it by ourselves. With some irony, the spouse or partner is not always heard as the voice of encouragement. And thus a neutral, external and professional source is required, which can also inspire trust. That is why people use executive coaches and mentors.

Last month, I attended the award ceremony for the Mass Challenge Competition in Jerusalem. An amazing event, it highlighted ten champion commercial start ups in front of an audience of close to a thousand people.

If there was one word that was repeated throughout the evening, it was the phrase “impact”. How can the participants challenge and change their target community? The videos and speeches dutifully drove home the point, repetitively.

Since then, I have not stopped thinking about this word “impact”. It is incredibly obvious, and yet very powerful. So I applied it to several of my clients in business coaching and mentoring sessions. For example: –

  1. When approaching investors with a presentation, I asked what they that will say within 30 seconds that will force the listener to respond: “Wow, I must be a part of this”?
  2. When selling  professional services – health, accounting, computing, etc – I questioned how their smile will ensure that the person signs up immediately without further pesky questions over the price and timing?
  3.  When talking with colleagues and employees at work, I urged my customers to consider what will motivate them to go the proverbial ‘extra mile’.

I can hear some of you asking: “Well is this not just my elevator- pitch?” In a sense, yes…but not only.

Too many of us glibly find a five line throwaway and hope that does the trick. The other person is expected to be impressed. What I am suggesting here is that those precious words strike the person in such a manner that they have to consider a change of approach. It becomes a ‘no brainer’.

Let me describe a case study, which I was involved with not so long ago. My client showed me a video, which she had created. Great idea, but it was boring and failed to highlight most of the leading strengths of her team. Awkward!

So, we discussed her positives, coated them with two emotional stories for flavouring, and guess what? People are beginning to listen to her. She is looking forward to recruiting some new customers of her own. She even left my Jerusalem office with a smile.

So what is it that you do that really make a difference on your target community, and how well do you carry out that task?

For all the concerns about the future of the Israeli high-tech sector, November 2016 is turning out to be a great month for entrepreneurs in the Holy Land.

Item No’ 1: NEC, the Japanese tech giant and still known to many as Nippon, is about to open an r&d centre in Israel. This has been on the cards for a few months, and the move has also probably been enhanced by the waning influence of the Arab oil issue. Indications are that the centre will be run by Ze’ev Weiss, former army intelligence, and will concentrate on cyber security in the first stage.

Item No’ 2: Back in the 1980s, I used to read about a small kibbutz company, located near the Sea of Galilee, called Degania Medical (DM). Today, that enterprise has mushroomed into a world manufacturing leader of catheters and silicone medical products. DM is about to be sold for around US$250 million to the American giant Q Holdings. As the kibbutz owns 30% of the company, that will result in a tidy windfall for the Jordan Valley farming community.

Item No’ 3: Staying in the medical sector, it was announced yesterday that the “US company Edwards Lifesciences Corporation is acquiring the Israeli valve repair device company Valtech Cardio Ltd.” The total value of the deal is placed at about US$1 billion.

Item No’ 4: In a different light, it is wonderful to see CNN covering the growing position of Israeli high-tech in the automotive sector. Considering that Israel has almost never been a part of this global industry and recalling the history of the Arab oil boycott, it is somewhat ironic that Israeli knowhow is driving – pun intended – international road safety, self-driving cars, car safety and much more.

And what will December 2016 deliver for the start up nation of the Middle East and thus also the rest of the world?

One of the classic questions that I am often asked as a business coach is how much should people charge for their services.

I am a trained economist by profession. So I dutifully profer advice about the level of the direct costs, including raw materials. Then there are overheads, such as rent. And ignore at your peril financial charges, including loans to be repaid.

Of course, there may be local factors to consider. This is not just a case a looking at the state of the competition. For example, many of my clients are based in Jerusalem, where there are two predominant population groups that force prices downwards.

However, beyond these issues is a factor that many buyers will gleefully encourage you to ignore. And this is where you, as the seller of your product or service, stand to lose big time. Let me illustrate what I mean with a fable that my wife sent me. (I assume that it is taken from somewhere on the internet).

A ship engine failed. No one could fix it. They brought in a man with 40 years. on the job. He inspected the engine carefully, top to bottom. After looking things over, the guy reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. The engine was fixed! 7 Days later the owners received his bill for 10k. ‘What?!’ the owners said ‘You hardly did anything. Send us an itemized bill. ” The two-line reply simply stated …..A) Tapping with a hammer – $2 B) Knowing where to tap – $9,998

Don’t Ever Underestimate Experience!

From a slightly different angle, I will illustrate this point with a true story. A client of mine was recently asked to quote for a contract, a piece of work which he would really enjoy to secure for a multitude of reasons. How should he present his position and win through, I was asked? So I created the following exercise.

Step 1: Think of a high price you would like to charge.

Step 2: Think of a low price that would almost definitely secure the contract.

Step 3: Consider in specific detail the time to be spent in direct meetings, travel time and preparation time. Do not try to minimize these items, because that is rarely a realistic approach!

Step 4: Internalise how your efforts will make a significant difference to the commercial life of the potential client.

Step 5: What is the true value to you of that time?

Step 6: Be honest…………is the answer to Step 5 closer to Step 1 or to Step 2?

Again, never underestimate the value of your experience. And that is expressed in the amount of time you invest, whether it is two minutes or two months.

Binyamin Netanyahu has never been over-liked by the media, whether playing at home or on an overseas pitch. Like a football, he is simply booted around by jealous opponents, who want themselves and their friends to have more power.

Does he care? Quite honestly, he grew up as an outsider in the USA, and I suspect that is still part of his psyche today. The question is has the press got it right this time? After all, the Israeli press has already seen in recent years a former Prime Minister and former President go to prison. So is Netanyahu, or Bibi, as he is colloquially known, next in line?

Bibi has often been associated with scandals. Little has come out of them.

Then a few months ago, his wife, Sara, was found guilty of abusing an employee.  The problem is this was second time around. The press had fun describing – who knows the truth – the apparently bizarre lifestyle of the Prime Minister’s residence.

Next has come the strange stories surrounding the Netanyahu’s eldest son, Yair. At 25 years of age, it seems that he is becoming a proverbial ‘power behind the throne’ of his father. (Bibi is Israel’s longest serving Prime Minister.) Nothing necessarily wrong in his role of advisor. But look at the company Yair keeps!

One of Bibi Junior’s closest friends in James Packer, scion of the Australian Packer media empire. It appears that Packer’s Israeli lawyer has approached the Minister of Interior himself to receive a special visa for his client for his long stays in the country. OK, but that same lawyer may have also represented Bibi in the past. To me, that sounds just a bit too cozy.

Maybe I could accept all that, until the submarine story emerged at the end of last week. As background, last month, Israel agreed to purchase 3 submarines from Germany, even though the former Minister of Defense had objected to the deal.

It has since emerged in fits and drabs that Bibi’s private lawyer, David Shimron, who has also been used for diplomatic missions, played the role of agent between the Israeli representative of the German manufacturer and the various parties in Israel. Shimron has denied ever discussing the subject with Bibi. And there is no real evidence to the contrary.

However, there is plenty of room for a conflict  of interest. To be blunt, why did Shimron not declare his intentions to all in the first place, so that could be no misunderstandings? And as one former senior civil servant asked: Israel has previously purchased from this manufacturer. So why is there a need for an agent to cement the deal?

It sounds so wrong. At this stage, the German company – whose track record on corruption ain’t brilliant – is conducting its own investigation. The Israeli Ministry of Justice is not opening a file, for now.

In parallel, the local press has been made aware that yet another investigation is under way against Bibi for possible money laundering. Again, there is no clear direction for now.

Individually, these stories can be explained. Together, for me, they add up to a pattern or norm of government that reminds me of ‘banana republics’. I utterly reject this form of government and rule.

Last week’s post about how Israeli commerce impacts on the UK economy turned out to be a mild understatement. Last week, 400 Israeli and British entrepreneurs participated in a conference in London, known as “Mind The Tech”, as the logo played on the theme of the London Underground.

The “noise” and out put of the meet-up was phenomenal, and it is worth recording some of the salient points.

  • The British ambassador to Israel, David Quarrey,noted how 60 Israeli companies in the UK have reported increased activity in the past two months.
  • Liam Maxwell, the UK’s National Technology Advisor, stated openly that Israel has not only brought its know-how to the island. This change has had a direct and positive impact on creating new jobs.
  • Of the 2,200 companies quoted on the London Stock Exchange, 29 are Israeli, a relatively high proportion for such a small country.
  • As the UK is creating its own version of the ‘start up’ nation, it has never hidden its desire to copy the Israeli model.
  • The conservative forces of the UK’s banking system are gradually coming to realise that they have to turn to Israeli Fintech leaders to protect themselves from threats and to keep ahead of competitors. Ironically perhaps, it is Brexit that has put those issues in front of everybody’s closed eyes.

In many ways, Brexit is forcing the UK to think like an island again, as if the past five decades have been a blip.

This trend draws a parallel to Israel, which has comparatively little trade with its own neighbours. High-tech has more than saved the economy of the Holy Land. It has allowed for the creation of commerce, simply by going around many of the obvious borders, tariffs and other obstacles….significantly downsizing that island syndrome. So far in 2016, a year of yet more international instability, investment in Israeli high-tech is 35% higher than last year.

And that is why the UK is so determined to work with Israel more than ever, for thae mutual benefit of all peoples from both nations.

The mandarins at Israel’s Ministry of Finance have good reason to be pleased.

First, it was revealed that Israel’s debt to gdp ratio is now down to 63.9%, as opposed to 95% back in 2003. This shows the country’s ability to repay debts. Below 60% is considered excellent, especially in the post- credit crisis era. A few days later, Fitch raised Israel’s credit rating to A+. Overall, the outlook is stable and healthy, as the Israeli economy still continues to grow steadily.

So, that’s all OK, isn’t it?

Now look again. For a considerable time, I have been warning of a split economy in the Holy Land. Global expert Prof. François Bourguignon observed that Israel is a country where the rich are benefitting from an inadequate tax system and from high prices for land. The gap between the haves and have nots is only growing.

There are plenty of indications of this inequality. The number of recorded bankruptcies in 2015 grew to 15,450, 50% higher than in 2012. The price of housing continues to rise, about 8% in the past year. Non resident Israelis have an easy time in avoiding taxes. And so the list goes on.

The point is very simple. The Israeli economy appears to be doing all right, according to base line stats. However, there is increasing evidence that the benefits of this improvement are reaching a limited number of people. And what is worse, the government does not seem to care.

Can I prove my point? Last week it was revealed that Israel had bought three submarines from Germany, despite the objections of the military. In today’s Hebrew media, we learn that the German manufacturer is represented in Israel by Prime Minister Netanyahu’s private lawyer, Dan Shimron.

Shimron’s office denies that he ever discussed the matter with the Prime Minister. Fair enough, but would you not have expected a top lawyer like Shimron to have declared the issue openly in order to prevent any possible thought of a conflict of interest?

Maybe, unless the rules for the elite are different than for others in Israel.

For over a decade now, trade between Britain and Israel has been booming. And if Brexit is to bring changes, that growth is only expected to be accelerated.

The size of Britain’s annual trade with Israel is now valued at well over US$6 billion. This is staggering. Consider that Israel is not the USA nor part of the EU nor part of the Commonwealth. There are relatively few arms’ sales between the two countries.

However, bilateral trade is not all the Israel contributes to the British economy. A few days ago, the Secretary of State for Wales declared that the Israeli company “Lordan UK Ltd’s £1million investment into Wales is an example of the new investment opportunities that have arisen since the Israeli business delegation visit to Wales in 2015, which has generated further job and business growth.”

Following on from that, Mark Garnier, who is the Secretary of State for International Trade, responded to a question from a fellow MP on the benefits of trade with Israel.

UK Trade and Investment, now known as the Department for International Trade, was actively involved in assisting 29 Israeli companies to set up or expand their operations in the UK and create 560 new UK jobs in 2015. The UK is the number one destination for Israeli FDI in Europe and there are now more than 300 Israeli companies established in the UK. Israel is an important trading partner for the UK and we are committed to further strengthening our trade and investment relationship.

And that is not all. “29 Israeli organizations are listed on London Stock Exchange across the Main Market and AIM, with a combined market capitalisation of $10.2 billion.” “Mind the Tech” is a massive UK-Israel technology conference in London, taking place next week. In my own work, I know of several joint Israeli lawyers, accountants, and other services with offices in both countries.

Bottom line, and maybe there is a message here for the Trumpish politicians in the world. Do not close your country off to trade not dally with boycotts, because trade has benefits for all. Britain has proven this conclusively, as it continues to welcome Israeli goods, know-how, and services.

Having a child with autism must be very challenging, if not downright stressful. Over the past few years, Beit Issie Shapiro (BIS) has been channeling the innovative wonders of Israel into finding solutions for autistic kids and others. This triumph deserves a bigger audience.

I happened to attend a talk given in Swiss Cottage London by Jean Judes, the Executive Director, of BIS. She highlighted the most fascinating of case studies in their efforts to bring children with extreme special needs back into Israeli society. In brief, the stories focused on reaching out to children, many of whom are still at a pre school age, but are unable to communicate with the outside world.

The key part of these efforts is the use of an Ipad. It appears that there is something in screen technology that allows the infant to ‘discover themselves’. In return, the staff at BIS have discovered that some of these kids are incredibly intelligent and fun loving. In one instance, it was learnt that the toddler understood English fully, and not just Hebrew. (The parents used to speak to each other in English when they did not want the child to understand)!

Israel is known as the ‘start up nation’. Not far from BIS are the large Israeli facilities of both Google and Apple. Both have assigned teams to work with BIS staff to create new services for such children.

Judes deliberately stressed in her talk that the children are cared for in their native language, Hebrew. The one exception are those in the Arab sector – Muslim, Christian or otherwise. This is particularly true in the Kalansua Family Advancement Center for early intervention.

BIS now has partnerships with similar centres as wells as governments and academic institutions in tens of countries, including China. Their work has been presented at UNICEF . This is as much an Israeli export as the high-tech services or its agricultural produce.

This knowledge – these changes – are just another aspect of Israeli innovation. They are enabling tens of thousands of children internationally to take their place in society.

 

A recent blog from “entrepreneur.com” considered 10 bad habits to eliminate from your daily routine. No surprise that the first three referred to cutting back our use of mobile tech or similar.

True, but I felt that the item was lacking. After all, what prompts us – well, most of us – to spend so much time on Facebook or just checking, yet again, if somebody has sent us that one email which hopefully will change our lives?

I found my way to the website of super Australian life coach, Sharon Pearson. She stresses a theme that is very important to me and what I often explain to my clients as a business mentor in Israel. Do not let others dictate how you should think nor let them dictate what is important for you.

Pearson phrases it slightly differently:

Take responsibility for changing your thoughts. I found this very difficult in the beginning, because I was so used to the negative thoughts. i was kinda hooked on them, because I layed the victim! When I chose to take responsibility for them, no exceptions, my thoughts started to change.

Last week, I wrote that: “Our negativity will ensure that bad things will happen.” We have more ability than we realise to take control of what we want to do.

This very theme came up with a client of mine in Jerusalem a few days ago, a self employed exec who has created a business from nothing. Yes, they are going through some business problems, which is stressing. Their natural default mode is almost predictably one of despair. In contrast, what I am trying to show them is that these same issues present an opportunity to change things around and then to move ahead.

The alternative for people like that? Yup, we can bury our sorrows in prolonged and distracting conversations on Facebook. At least that would allow somebody to write a blog about the habit.

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