I recently read a blog in an Australian paper which linked luck to a person’s success in business. I was not convinced.

Just over a year ago,  a blog on the Forbes website argued that “all financially successful people only have two real things in common: luck and timing.” Again, too simplistic for me.

If you are a religious person, you would argue that divine fate is at play. However, many a preacher will also explain that we are given choices in life and it is up to us to choose the correct path. So how does that apply in business? I want to take three brief case studies of mentoring clients of mine in Israel, their recent troubles and their responses.

Story 1: A small manufacturer approached me with cash flow issues hitting him hard – banks phoning regularly, clients procrastinating, car bills mounting, etc. Yet after a few brief sessions, he was starting to pay off debts. The difference resulted from him remembering to do all the basic things that relate to any business. In this case, he collected outstanding payments from clients and then continued on to find some new (lucrative) contracts.

Story 2: Despite an excellent corporate cv, the client was having a rough few months. Yet, suddenly the phone begand to ring with a series of new and highly profitable customers. My client had not even been touting them. However, he had been in touch with them previously, directly or through third parties, delivering professional advice pro bono. His reward just took a long time to come through.

Story 3: This client runs an efficient operation in a quiet Jerusalem neighbourhood. For all the talent of the management, sales had been weak and this had been justified as other locals were also suffering. After a sharp prod, they were back on the sales trail. In fact, one new customer then recommended another.

So what are the common themes that brought about these changes? It was not simply a matter of telling them ‘you can do it’.

All of my clients tapped into their passion, which is why and how they set up shop in the first place. Second, and equally important, the turnaround came about because each top person started or continued to do their best – the very utmost of what they are capable of delivering, and every day. It was these qualities, which brought in the extra revenues.

Luck? No, they created their own success by using their skills and environment.

However you look at it, the Palestinian economy is not very strong. It is easy and convenient for outsiders to hoist the blame on Israel. And whenever a Palestinian leader meets a Western counterpart, the resulting press release almost always refers to a request for foreign aid.

I have often tested the fallacy of this argument by citing an IMF report that shows how under Israeli rule, the joint economies of Gaza and the West Bank were one of the best performers from 1968 to 2000 – 5.5% per annum on average. It now appears that there is a second fallacy. Despite popular belief, while Europeans pour their taxpayers money into the Palestinian economy, there is a relatively poor parallel response from members of the Arab League.

My starting point is a comment reposted on the LinkedIn page of the ‘Economist’ magazine. According to a Malaysian expert, Prof. M. Aslam Haneef,  “The total amount of charities and gifts that are coming from the Muslim world is 15 times more than the total of the UN aid package.” A bold statement, which I am not able to challenge.

And then I read a commentary from the Gladstone Institute. Mainly through UNRWA, yes a UN body, “the Palestinian people have received per capita, adjusted for inflation, 25 times more aid than did Europeans to rebuild war-torn Western Europe after the Second World War.” UNRWA’s budget in 2012 exceeded a staggering US$900 billion.

The USA, EU, UK, Sweden, Norway, Germany, The Netherlands and Japan pay $644,701,999, or 71% of the annual UNRWA budget.

So where do the Muslim states rank? First in, at #15, is Saudi Arabia. The land of palaces and private gold leaf painted Airbus A380’s on the Royal runways chipped in $12,030,540 — less than half of a tiny country such as the Netherlands. Second, at #18, is Turkey, the supposedly economically flourishing state of a prime minister who zealously supports Hamas, but which contributes only $8,100,000. Qatar, which stands accused of paying millions in bribes to win the bid to host the 2022 World Cup, and is now spending millions on the construction of high end soccer stadiums, contributed exactly $0 to its Palestinian brothers in faith.

Seeking to move beyond the sarcasm, I checked out the ‘economy page‘ of the Ma’an News Agency, based in Ramallah. Of the twelve leading items, six refer to pleas for overseas aid. Of these, only one connects to an Arab source, a Saudi contribution ‘to develop sewage refineries’ (sic), while the rest are the USA, EU and…..well the story begins to repeat itself.

In the private sector, the situation is not much different. One of the few genuine venture capital groups in Ramallah is Sadara, which recently raised US$30 million. From whom? “Google, the investment fund of George Soros, the European Investment Bank, the Skoll Foundation and the Case Foundation. The software giant Cisco has invested $5 million.” Again, no prizes for observing who is not listed.

The Palestinians need financial help. No argument. Assumedly, they would reap greater rewards from current donors if they could improve their transparency and accountability. Meanwhile, you have to ask, what is it that the Arab block knows, which forces it not to invest in the Palestinian economy?

There is an international movement called BDS. Founded by Omar Barghouti, who curiously enough studied at Tel Aviv University, the group seeks to impose an international boycott on Israel, cultural and economic, whether the subject matter relates to Israel pre or post 1967 borders.

So if 171 non-governmental Palestinian organisations started off the protest, you would surely expect to see Palestinians running from any opportunity to support business with Israel?

And then along comes Hani Alami, 43 years old and star of the Palestinian telecom scene. Alami has just purchased 30% of Alvarion, former leader of the Israeli internet industry. According to a Hebrew article, the bidding closed around 48 million shekels, about US$14 million.

And this poses the question, who else is trading with Israel?

Well, there is an official trade agreement between the two sides, signed by the Prime Ministers. There is a chamber of commerce. There is around 3 billion dollars of recorded annual trade. And this is in addition to a plethora of on-the-ground projects that are rarely featured in the international media – sharing water resources, open networking by CEOs, and even occasionally at retail level.

BDS is an evil non-sequiter. Peace can only come through promoting cooperation and further mutual understanding, but BDS prohibits the two sides coming together. And if BDS was so interested in human rights, why does it not object to Palestinians trading with China or Russia, or why does it not complain about Hamas executions of criminals?

David Olesker wrote:

The most extreme detractors of the Jewish state assert that the key to understanding the region (and perhaps the whole world) is to understand that “Israel is the problem.” Like the classical antisemite, the ideological enemy of Israel sees Jews and Israel behind everything that is wrong in the world. Most reasonable people who are generally supportive of Israel’s rights can’t easily be seduced by the conceptual frame that defines a world where “Israel is the problem.” However, they can fall prey to its less extreme form of the frame, which can be summed up as “Israel is the issue.”……If Israel is the issue, then all problems can ultimately be resolved only by actions on Israel’s part .

And thus the circle would be closed, except that there are still enough Palestinians out there who understand that hatred serves…….. hatred. It never creates prosperity nor harmony. Witness Alami, who would happily show you how much Israeli tech has been installed into the Palestinian mobile and telecom sector in recent years.

Yesterday, my wife was at home on sick leave, and she started watching a film called “The upside of anger“. She sent me the following two pieces of dialogue.

People don’t know how to love. They bite rather than kiss. They slap rather than stroke. Maybe it’s because they recognize how easy it is for love to go bad, to become suddenly impossible… unworkable, an exercise of futility. So they avoid it and seek solace in angst, and fear, and aggression, which are always there and readily available. Or maybe sometimes… they just don’t have all the facts…………..

Anger and resentment can stop you in your tracks. That’s what I know now. It needs nothing to burn but the air and the life that it swallows and smothers. It’s real, though – the fury, even when it isn’t. It can change you… turn you… mold you and shape you into something you’re not. The only upside to anger, then… is the person you become. Hopefully someone that wakes up one day and realizes they’re not afraid to take the journey, someone that knows that the truth is, at best, a partially told story. That anger, like growth, comes in spurts and fits, and in its wake, leaves a new chance at acceptance, and the promise of calm. Then again, what do I know? I’m only a child.

Fascinating reading in themselves. Also yesterday I was faced with two situations from clients. They were angry, but was their emotion a cover for something more relevant?

CASE STUDY A: My client, Fred, told me how he was providing a service to his client, when everything started to go wrong. Fred began to shrink into his usual “I am not good enough mode”. All he could see was five minutes down the line with people screaming at him and the fear of being kicked off the contract. He was furious with himself, taking the blame for what had occurred, until………..

Then Fred managed to take a step back. Things go wrong, he said to himself. He recalled that he was not responsible for the original spark that had launched a negative chain of events. Above all, Fred realised that his client had placed the firm’s trust in him so that he, Fred, would take control at such moments of crisis. An hour later, the client was thanking Fred profusely.

Fear had created anger, when in fact there had been a golden opportunity to prove one’s skill set.

CASE STUDY B: It is some years since a former client, Dave, kicked me out. I had no idea why he became cheesed off half way through the project. Excuses flowed but they did not add up.

Last night, I heard about the mega success of a rival to Dave’s group, which had really kicked in just when I had been with Dave. I suspect that at least some of Dave’s anger had been an outlet for his envy.

Of course, the alternative should have been for Dave to set up an alternative strategy. The aim should always be the very best that you can be rather than meekly copy others. However, that option would have forced Dave to recognise that others were doing better than him.

As a business mentor, I am asked to help people to move ahead by changing. Sometimes, this process kicks off by forcing the client to recognise that their emotions and reactions are in the wrong place.

This weekend, Jews celebrated their new year. In parallel, Israel’s finance ministry released statistics revealing that the budget deficit, which has grown alarmingly since 2011, is finally under control. More money for the voters?

Why the good cheer? First some background.

The outgoing deputy of the Bank of Israel, Dr Karnit Flug, admitted recently that authorities had been caught unawares by the severe downturn in taxes during 2012. The overestimate reached 18 billion shekels, close to US$5 billion. The real estate and stock  markets underperformed. And as a global straight jacket meant that overseas markets could not take up the slack, unemployment rose and this in turn resulted in a smaller tax base.

By the summer of 2013, Israel’s new government eventually introduced a combination of tough measures including cuts in government budgets and an increase in VAT.

However, it now appears that the initial stats for 2012 were inaccurate. The income per average family was nearly 10% higher than first calculated. The budget deficit was not 4.2%, as first feared, but a mere 3.8%. In comparison to GDP, the debt was only 68.5%, a fact which many other members of the OECD can only dream about for the next few years.

There are four apparent reasons for the welcoming news. First, governments around the world have been changing the methodologies by which such numbers are collected and added up. OK, an accounting trick, but let us welcome it for the moment. And as I mentioned, taxes have been raised. Third, as the government did not approve a budget for 2013 until roughly June this year, it was forced by law to operate within the framework of the previous numbers on a pro rata monthly rate. In other words, over spending became illegal. Finally, Israel’s coffers have benefitted from a number of large deals, which have seen extensive tax dividends. One significant example of this was when Warren Buffet completed the purchase of Iscar in May 2013.

The budget gap is down to around 13 billion shekels or 3.3%.

More money for the voters? More to invest in r&d? Back to grandiose changes in the transportation set up? Who knows. The government in Jerusalem does not need to face an election for nearly three years. However, this must be welcome news for overseas investors and the global money markets.

How many time have you listened to a story about somebody’s business problems and then casually observed how ‘they should have known better’? And as we probably all make the same type of stupid mistakes in our own commercial worlds, I find it amazing how we so rarely refer the same comment back on ourselves

The issue of why we ‘insist on getting things wrong’ has been bugging at me for some time . Again this week, I was confronted by two such instances. First up came a story from the Israeli army. A senior officer recently took up a new appointment. In order to ‘make his mark’, he started to hand out punishments for even the slightest misdemeanour.

One decorated soldier, rapidly approaching his demob date, was given a two-week suspension on barracks for leaving his kit bag unattended. The original consideration had been the clink. The reasoning behind the harsh sentencing of the stalwart, who has field command experience, is to further excellence and to set an example. An example to whom, I ask?

The soldier made an honest mistake. He already knows better than his immediate behaviour might suggest. And he is about to finish his service. So, the punishment is hardly likely to teach him anything. As for others in the unit, they are so disgusted with the razor-sharp attitude of the officer, their motivation took a fair beating.

It is obvious to the reader. Surely it would have also been clear to the newbee powerman in the squad. And yet he went ahead with his actions, which have drawn the exact opposite results from what was desired.

Similarly, I met up with a client this week, who is stuck in her attempt to prepare a new product for market launch. She knows what she wants to do and why. She has deep experience in the field. She can rationalise accurately everything that needs to be done, and at considerable length. She has refined the concept, repeatedly……and more.  However, she refuses to move to the stage of implementation, even when she knows it is the right thing to do.

I was watching a video by Dan Ariely, psychologist and behavioural economist. “We do things that we think we know how they work, but we are wrong.” He goes on to describe how sometimes we let the mind dictate to us what we see rather than observe through our eyes.

As a business coach one of my tasks is to present questions and challenges to my clients. A necessary first step is not to understand what and how they are going to change, but if they are a prepared to step into a new comfort zone.

And if the answer is no, for whatever reason, then the pile of mistakes will continue to mount up.

The Syrian government is responsible for the death of around 330 civilians. Experts on our TV screens have described how the area was first bombed in order to drive people into underground shelters and then hit by a chemical attack, most effective at lower levels.

Following this macabre act by fellow human beings, it has been disclosed by various American spokespersons that in the past year there may have been around a dozen other uses of chemical weapons in Syria. Ironic – next year we can ‘celebrate’ the beginning of World War One, where gas was used with such resounding success.

Let us be honest about the evidence. There is no film of somebody loading a Syrian jet blame with the weapons, smiling at the cameras, and then marking an x as the load falls to the ground. And we must ask if it is really possible that the Syrian President, Bashar al-Assad can have given the orders, a man who “attended postgraduate studies at the Western Eye Hospital, in London, specializing in ophthalmology”. His wife, Asma, “studied computer science and worked briefly as an investment banker…..In 2011, the first lady’s life was the subject of a controversial 3,200-word Vogue article entitled A Rose in the Desert, which dwelt on her modern outlook and progressive views on parenting.” With four children of their own, the Assads cannot have been so cruel?

American and European have committed themselves to action, initially. Some kind of moral red line appears to have been crossed. However, in the shadow of the legal quagmire before, during and after the second war in Iraq, decision makers are pulling back very sharply.

Of those commentators urging caution, some claim that there is no absolute proof of culpability. True. Yet, it was Sir Malcolm Rifkind, a Jewish lawyer and former British foreign secretary, who reminded the House of Commons on Thursday that in common law you only need proof beyond all reasonable doubt in order to reach a verdict of guilty.

Some claim that before carrying out a response you have to think of the consequences of actions. Will it stop further  use of such weapons? Will an attack create further bloodshed? True, but there again, two years of pathetic global diplomacy has seen the death toll in Syria rise to 100,000 and millions cast out as refugees.

Some claim that the world did not act over Darfur or even the previous atrocities in Syria. Thus there is no point reacting now. (I witnessed such a discussion on Sky TV this morning). To my mind that is sort of saying: Some killers or thieves get away with it and therefore all criminals can go unchecked.

Have we reached a stage where politically correct rules above common sense? It was another Jew who reminded us of a biblical phrase: “When you see a helpless victim, don’t cross over the other side of the road.” As I understand things, the bible is holy for at least three religions and most peoples across America, Europe and the Middle East.

While Western politicians and civil servants chastised themselves over what was the decent thing to do, Israel – a country the size of Wales – was taking two different tracks. The government continued to provide medical services for injured Syrian refugees crossing the border. In parallel, it speeded up the issue of gas masks to all of its citizens, regardless of ethnic background.

Modern Zionism has ensured that Israel is the one country in the world where Jews can decide how to govern themselves. (75% of the populace considers itself Jewish). Further, it is the one country in the world that has to protect its people against gas and chemical weapons on a permanent basis. Ironic, but one of the factories which makes the equipment is owned and operated by some wonderful devout German Christians.

What the Syrian crisis has shown is that Zionism was right. When the chips are down, when the dye is cast, when push comes to shove, Israelis can and do and must continue to ensure that they are in a position where they can rely on themselves.

The problem for Europe et al is that their position on the Israel-Palestinian peace process is based on the guarantee that if Israel were to be attacked after it has supposedly withdrawn from the West Bank, then the overseas cavalry would step in to help. Reluctantly, that same evidence of the last few days, Darfur, Rwanda and elsewhere makes this thesis as stable as jelly.

What is the benefit of Israel as a strategic ally? Aside from being the only democracy in the region, encryption technology from Jerusalem and now owned by Cisco is securing the use of SKY TV and others in 450 million households around the world. Firewall technology from Tel Aviv and now owned by IBM protects the account holders in nearly twenty leading banks in the USA and in the UK.

Permit me a final word to the doubters of action re gas and chemical weapons. Remember the happy Assad family. Joseph Goebbels earned himself a doctorate in nineteenth century romantic drama and went on to become a loving father to six children. Now how long and at what cost did it take European powers to correct their mistakes and stop this man and his boss?

Here’s a conundrum.

As a business coach, I am often faced by potential clients and even those in the middle of our contract who say: “I know that I want to change my business around and derive more money, but actually……….I do not like what I am doing.”

It sounds contradictory, but it is not. How so?

Let me start with a blog that appeared this week on the Harvard Business Review and was later well-circulated. It looks at ways to make work more meaningful, because that is a key factor to allow people to thrive,  both professionally and personally. The author examines ‘autonomy’ – the perceived freedom to determine your own surroundings and techniques.

That is important for an employee. And that is often a prime motivating force, which encourages entrepreneurs to set up on their own. However, what happens if you have made that leap, and you are still unhappy? What then?

When faced with such a position, I often ask my clients (business owners): Assume that tomorrow, you were earning considerably more money doing what you are today, would you then be happier? The answer is usually a resounding yes.

Then, I set out to map the steps, which will take them along the path to financial triumph. And here lies the catch. Every now and again, I realise that a few clients are not moving ahead. They are dragging , procrastinating, missing deadlines, etc.

So, I ask them why. At this point, the challenge is on and it is time for them to stop hiding behind generic phrases. It is these people who often relate just ‘how hard it is for them’. And when I push that bit more and question what is actually tough, after much puffing and deep thought, the puss of the truth spills out: I do not want to be doing this. I am here for my spouse. I fell into it by accident and I am desperate to get out. Aha!

So, the next time you hear yourself or a friend say please help me with my career or my business, maybe the first thing to discover is  what it is that they actually want to be doing. What is the vision?

Yesterday’s meeting of the Jerusalem Business Networking Forum turned out to be a fascinating event, evaluating the role of CISCO in the Israeli economy.

For dummies like me, what CISCO has been doing for the past three decades is helping to ensure that our internet services go faster. Israel, as a start up nation, has been at the forefront of the communications and high tech revolution in this period. Ergo, Cisco opened up an office in Israel back in 1995.

The two speakers gave an overview of CISCO – how it expands via natural growth, aquisition and partnerships – and then why it purchased for US$5 billion NDS, a Jerusalem-based former start up. Effectively, the NDS story was a case study for why CISCO is so ‘into’ the Israeli market. The facts make for fascinating reading.

Of CISCO’s 116 acquisitions over the decades, 11 have been in Israel. When the company purchased Intucell earlier this year, CISCO crossed the 2,000 employee mark in the Holy Land. It has made 21 additional investments and holds positions in two local VCs, including Sequoia Capital. By the end of 2013, it will embark on two further VC projects and have opened a center of excellence for cyber security.

The match with NDS – now formerly part of CISCO – came about through a market need, clear symmetry and a leading technology, developed via chutzpah and former military skills. Here is the interesting thing: NDS provides encryption and security technologies, which puts TV into your homes. Summing up their various product lines, NDS services can be found in about 450 million homes around the globe. Stunning.

It is difficult for me to consider to find a comparable technology, although I did recall Trusteer, another former Israeli start up that was purchased earlier this month by IBM for a sum that may approach the US$1 billion level. “Seven of the top 10 US banks and nine of the top 10 UK banks use Trusteer’s solutions to help secure customer accounts against financial fraud and cyber attacks.” That is a lot of people and financial wealth that are benefitting from Israeli brain power.

Where CISCO will move on to in the Israeli economy, I am not sure. However, just look what they have attained through NDS, a company where for religious reasons many of the employees do not even possess a television !

What makes a successful serial entrepreneur?

There are all kinds of blogs telling us the ‘4 main characteristics‘ or insider insights or revealing secrets of the profession. The fact is that if we knew the answer, newspapers or school teachers would be picking out the geniuses very early in their professions.

Israel’s Shlomo Kremer has been described as “one of the world’s greatest information security entrepreneurs”. He has just made the headlines again because he is one of the prime investors in Trusteer, which was sold to IBM for US$700m.

Of his other companies, Worklight was handed off for US$ 90 million in 2012. The previous year, Digital Fuel changed owners for US$120 million. And he is currently placed in a series of other ventures such as WatchDox, SkyFence and Alicanto, which are all plodding along nicely, thank you.

So what makes this 47 year old Israeli, temporarily living in Silicon Valley, such as hit when handling Israeli companies…..tens of thousands of miles away? And when I say managing, press reports indicate that this is often hands-on!

Reading between the articles, it would seem that Kremer is a man who has foresight. He understood very early on the impact of apps. In parallel, he is a person, who will get his hands dirty, trying to ‘muck in” and help. He demands expertise and the best, while prepared to talk with and then motivate people even at the bottom of the company ladder.

I assume that Kremer must have leadership qualities, a phrase casually thrown around by many without knowing what it means. And what does this teach us mortals?

I caution against trying to copy or to emulate. After all, Kremer did not become a whizz kid overnight. We can watch and observe and then look internally. What specific attributes of ourselves are we prepraed to change, a step at a time?

Last week, I wrote about the importance of coaching. Whether you are training on the sport’s field or grappling the intricacies of a commercial issue, it is often a coach that can show you the path through.

I referred to a session by coach Herb Brooks, who demanded that his team discover the meaning of the term ‘dig deep’ in order to beat a mightier opposition. Brooks was not only to achieve success with the American Ice Hockey team, who pulled in several accolades at league level.

Today I read about Noah Hertz, a seemingly innocuous ultra-orthodox Jew with eight children and a long grey beard. The article described how the former air force colonel was forced to bale out of his plane over the Golan Heights during the 1973 war. He broke his leg, received minimal treatment, was questioned, tortured, kept in solitary and………….well all the other things that most of us can only imagine through the help of Hollywood camera men.

As Noah relates, yes, he did pass to his capturers some info. However, it was basic details only. He discovered a mental and physical capability that he did not know that he possessed, even for all his exhaustive training to become a pilot.

Today, a man at peace with life, Noah views life just like a fighter pilot sees the landscape, as he flies precariously low to beat a radar trap. There are dips and troughs which zip pass the aircraft at great speed. What keeps you going – through danger and excitement – is the knowledge of a greater and specific final destiny. I guess that is what digging deep is all about.

For the record, the film about Brooks is called “The Miracle”. When you read Noah’s story fourty years on, you learn what a true miracle is.

When trying to motivate my clients, I often refer to a clip from the film “The Titans“.

The film is the standard theme of school sport’s team not achieving the results it needs. Amidst girl troubles etc, the coach comes along and inspires them to great results. Very Hollywoody.

For all that, the link to a 6 minute clip is brilliant. When the coach demands “your level best”, he challenges all of us – on the field, in our office – to consider if that is really what we give every day. After all, what is ‘the best’? Can it be measured, and not just in goals or points?

I recalled this when an American client of my mine recently referred me to the film “The Miracle”. This is a true story of how the American ice hockey team overcame the brilliance of the Soviets at the 1980 Winter Olympics.

As a Brit and lover of cricket, I realised that I needed to educate myself, to delve into utube and to discover the relevant section. I was not disappointed. The speech of coach Herb Brooks is a must-listen-to’ three minutes. He makes a whole squad realise what they are capable of and how they can seize the moment, whatever the obstacle.

Sports are not simple. Tiger Woods or Andy Murray, even the best have to train and practice. Similarly in business, success and profits rarely come without some sweat and a lot of worrying. Again, there is no guarantee of great results.

Yesterday, I visited a client in Jerusalem. After a steady beginning to the year, they are not having the best of months. If I could put into pictures my pep talk, it would not be far off the other message from Brooks in an earlier part of the film. Dig deep, but really deep, to remember who you are and why you want to succeed in your enterprise. Then you have a great chance of making a go of it.

There has been much talk recently about Israeli high tech having reached a peak and is now faltering ….whatever that means.

After all, there are signs that VC funding is falling off. The continually high level of the shekel against other key currencies may be having an adverse effect on exports. Even the government admits that tax incentives introduced over the past few years have had a miserly effect.

Take a look again. All is not so gloom and doom. For example, Johnson and Johnson has just given its financial backing to a new biotech incubator.

The item that caught my eye was that “online translation company Babylon Ltd is in preliminary talks to merge with online and mobile app distributor ironSource Ltd.” I am talking about two Israeli minnows with barely a decade of commercial experience between them. And yet together, their sales cross the one billion dollar mark.

How have they done it? What will allow them to go for a full launch on NASDAQ? Will they seriously start to challenge parts of Google’s empire?

Recent articles in the Guardian and Business Insider highlight an important and unique element to Israel’s high tech industry. The key is the geeks who emerge / graduate/ are demobbed from the Israeli army’s 8200 Unit, the techy part of intelligence operations. In Hollywood terms, such anonymous heroes help the James Bonds of the Holy Land do their work.

As Matt Kalman wrote, these people:

have made the most of their expertise in cybersecurity, data storage, mobile communications and analytical algorithms to help transform the basis of Israel’s economy from orange groves to mobile-phone apps. Israeli inventions include instant messaging, the USB memory stick, the firewall and the secure data links that enable most of the world’s banking transactions and TV signal decoders.

Israeli tech firms Nice, Comverse and Check Point were all created by 8200 alumni.

Such companies are turning over billions, employing tens of thousands, and generating tax revenues of equally vast sums. Maybe there is a lesson for the Israeli government.

Go out and listen to what the new entrepreneurs are saying. Keep the incentives simple. Some of them just want cheap office space and no bureaucracy for a year in order to get started…..and maybe turn into another Babylon or Nice.

To the outsider, Israel’s economy looks wobbly. After nearly a decade when the average annual GDP growth was well over 3%, there appears to be a feeling of uncertainty.

Take the issue of the new-found offshore gas reserves. Despite committees and Parliamentary debates, the government has yet to conclude how much is permitted to be exported to Cyprus and elsewhere. That is poor decision-making at the very top.

And there is the fiasco over choosing a new governor of the central bank. Jacob Frenkel, a man who possesses all the right professional credentials, was chosen. It has since emerged that he did not disclose an unfortunate private issue and thus was forced to chuck in the nomination. Next up was Leo Leiderman, a brilliant economist, but his nomination was brought down via rumour mongering. And it is said that an excellent female candidate is unlikely to be picked, because some years ago she wrote an analysis, which was not so friendly towards the current Prime Minister. All rather pathetic.

There has been some initial fear that all this uncertainty would lead to speculation against the Israeli shekel in the currency markets. That is a possibility. However, there is another side to the economy, which is far more positive and encouraging, and is being ignored.

First, the budget deficit finally seems to be under control. For over a year, it had been rising progressively from 3% to 4.6% of GDP. Now, “the treasury said higher-than-expected tax revenues over the last few months and lower-than-planned spending had reduced the 12-month-trailing budget deficit to just 3.79% of gross domestic product at the end of July.”

Almost at the same time, the Bank of Israel released information that the foreign currency reserves stood at an all time high. Not exactly the sign of an economy in trouble.

What next? Very simple. The people are clearly doing their bit to make sure that the economy is stable. It is time for the politicians to learn how to govern.

 

 

Back to agriculture?

Israel is known as the Silicon Valley of the Middle East. Where it has led in telecomm technologies (internet, mobile, apps) etc, the successes have been followed in biotech, nanotech and cleantech.

Thus it may come as a bit of a surprise that one of the most important pieces of equity finance this month centres on a small moshav (farm) called Sharona. Host to genetic engineering seed company Kaiima Ltd. the final stages of a financing round is in completion stage. The talks involve “Asian investors, including Horizon Ventures of Hong Kong billionaire Li Ka-Shing and the chairman of Hutchison Whampoa Ltd. The World Bank has pledged up to $20 million out of the $50 million that Kaiima plans to raise.”

Let me explain what is so special about these farmers. Since 2006, they have been developing seeds, which have a capability to produce high quality crops and in quantity, but without any of the drawbacks of GMO. Just recently, the company was named as one of the world’s top 100 achievers in the field of cleantech.

Israel has always had a strong reputation in the field of agriculture. It was a pioneer in drip irrigation. The Negev desert produces vast quantities of crops throughout the year. Its expertise in diary farming is sought after in countries like Vietnam and elsewhere.

To understand fully the results of Kaiima’s work, the pictures on this link (Hebrew text) explain the differences achieved. That is how a small start up in the middle of nowhere can attract the attention of some of the world’s leading investors and thus record a book value of US$300 million.

In an age of social media and globalisation, why do some companies still try to ‘con’ their customers?

In an amazing blog, Joyce Gioia describes how it took the innocence of an 18 year old German entrepreneur to reveal that many subscribers to a mobile plan were being offered unsuitable plans. Twitter was swamped with negative responses. Gioia also detailed how Hilton Hotels seemingly deliberately misled customers over their points system. It is what she calls ‘negative optimisation’. Short term gain providing a long-term branding disaster.

So what can be done to gain the trust of customers and, just as important, potential customers, in an age where scepticism rules?

One clever approach, which deliberately taps into the youthful aspects of social media, is to create a ‘fake ad’. One of the best (and absolutely hysterical) examples in this category is “The Roominator“, which has apparently generated a mass of new traffic to the site of Blue Jeans Network, which supplies on-line video conferencing tools.

The point is to create an image that may be funny but shows the product or service from a totally refreshing perspective. If you have some British roots, you may argue that it is like bringing Monty Python into the advertising world. Above all, you realise that for all the satire, you are being represented with a genuinely honest approach, which encourages people to effect a sale.

Back in school, our teachers taught us not to lie, and they scared the heck out of us if we did. Maybe they should have concentrated on teaching us the benefits of telling the truth.

A significant percentage of my clients come to me at a very early stage of their business development. Some are trying to start out for the first time. Others may have filed their registration forms, but have that awful heavy feeling hanging in their stomach. Another category boasts those people who simply want to try something new, abandoning past triumphs.

What prompted me to return to this theme? First, I was asked by a magazine to write an article on the problems in setting up a new business. In America, around 30% do not make it through their first year. In Israel, where I live, 70% of food enterprises close within 5 years. That is a lot of time and effort that can be invested for minimal reward.

On a different level, I was reading “Inc Your Dreams” by Rebecca Maddox. She reveals the horrible secret as early as the preface of her book: “No one really taught any of us how to make decisions”. And this is from a person who used to resonate ‘Ms Corporate America’.

The point is that while there is a lot of supposed glamour in setting out on your own and it can often seem that many around us are doing just that and so successfully, the truth is often different. Whether you are opening a shop or NGO or high tech start-up, the grime of reality  – emotional strain mixed with financial strain – can be more than challenging.

There are many ways around the issue. And two come to mind immediately.

1) Never forget who you are and what your core values represent. Always remember just how good you are.

2) Understand that nobody succeeds by themselves. We are all dependent on others. And if you do not have a confidant to help you along, find a business coach who you can rely on.

One topic that often comes up in mentoring sessions is when and how to call prospective clients.

It is staggering the number of people I meet, who tell me that they do not have enough work. Yet, at the same time, they are carrying around a list of people who they can contact and who may give them a contract. By not calling the potential source of work, my client clings to the hope that they are still needed, which psychologically appears to have more value than being rejected or even receiving a positive answer.

At this stage in the conversation, I find myself encouraging the client as strongly as possible to commence dialling immediately. Why let a hot or warm opportunity go cold?

However, while this is a rule of thumb, it is not etched in stone. Business is dynamic and we must be prepared to change and act differently when challenged.

For example, I know of a few cases recently, where the customers of my clients have been seeking – even demanding – more services, without completing previous payments. The background and reasons are different. In one case, the customer has been trying to change the terms of the contract.

Let me clarify. A customer may apply subtle or blatant emotional pressure. They may play on the fears of the supplier, who is desperate to obtain more work or create a larger contract.  However, the general pattern of proffered advice is to wait it out, patiently. For all the talk and persuasion and posturing, more often than not, it is the customer who is more worried. They are the ones who are desperate to be serviced in order to move forward.

In Israel, there is an old phrase, which describes a good business deal like a meal of “hamin”. This is a stew, which is cooked overnight on a low flame. You can hurry it up, but then risk ruining the taste.

And this is what is happening here. Even though you might want the work, you have to make a judgement call and not to rush your responses. Let it come towards you, slowly and gradually. The tang of success is that much sweeter.

 

The world banking system has been through a lot in the past 5 years of so. Israel, which depends so heavily on external finance to support its start-up economy, has had to dodge through the maze of collapses and constant retrenchments. The question remains, why has the banking system in the Holy Land not joined in the free fall?

A Hebrew interview in yesterday’s with Dudu Zaken, the outgoing inspector of banks, was revealing. As he put it: “We have run simulation models to see what would happen if one of the local tycoons went under, and no bank would collapse.”  For me, that is significant.

The reasons for this strength are many and varied. Start with the fact that when the global credit crisis attacked world markets during 2008, Israel has been there and done that two decades earlier. The lessons had been learnt back then.

Equally importantly, Israel’s central bank has been run until recently by Professor Stanley Fischer, a heavyweight on the international banking scene. He rarely shirked from taking on the top leaders of the major local banks, particularly Bank Hapoalim, if he feared that there was room for poor management and conflicts of interest.

A third part of the picture is the desire of central regulators, both at the Parliamentary level and via the Finance Ministry, to make the world of banking more transparent. While the success here has been limited, progress has been made. For example, over the next few months the minimum for all banks will be clarified and lowered. The types of commissions or charges have been reduced from 300 to 70.

Not all is perfect. As Zaken observed, local banks need to cut their own costs, and his comments were directed at the high wages paid out to the top managers.

About 60 percent of operational expenses at Israeli banks stem from salaries, the most of any country in the Organization for Economic Cooperation and Development after Denmark and compared with an average of 47 percent, Bank of Israel data show. The efficiency ratio of Israeli banks, which measures the effect of operational expenses on revenue, is about 70 percent, the data show. The OECD average is 62 percent.

In addition, Zaken sounded a warning about the lack of opportunity for competition. Five banks dominate 94% of banking activity in Israel.

What next? The Israeli economy is due for some structural changes over the next few years. It would appear that these need to include a more open policy to encourage additional banking players, while not impinging on the successes achieved to date.

Just another bloggers article about 4 lessons from great biz leaders?

We are told to:

  • Be confident in who we are
  • Think independently
  • Know when to move on

Nothing too original there. What caught my eye was the fourth point from Jay Z, rapper, entrepreneur and international success story. He hits the nail on the head:

So make it a point to pursue excellence, not fame. Excellence is who you are. Fame is who you once were.

I cannot recall the number of times I have sat down to a coaching session and the client has effectively moaned how they want to copy so-and-so. Sure, you can copy methodologies and tactics. That’s fine.

However, what makes the difference is when you apply all these things, attune them to your own environment and then ensure that you carry out the tasks as well as is possible.

Only yesterday, a friend had told me how they had wanted to execute something very specific and important to them. Unfortunately, they had become confused by the plethora of advice received. In trying to be like others, clear pathways ahead had been covered by heavy clouds filled with buzz words. Help!

The solution proffered was based on four practical elements:

a)      Be yourself

b)      Recall what is your full aim

c)       Identify what policy is truly in tandem with that aim

d)      And then carry out the methodology to the best of your ability.

There is a Hollywood clip that many business coaches refer to. In the script, a team of high school football players are so caught up with complaining amongst each other that they forget what their real target was – winning. Efforts were invested in verbal challenges rather than testing their physical skills on the field.

You can see the link here. I invite you to watch in full and then carry out a very simple test. Recall any one business or work problem and then answer the following question with full honesty:  “Have you done your utmost to resolve the issue. If not, what will it take to perform to the top of your ability”?

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