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Why is Israel allowed to be different?

28 September 2011
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Categories: Business, Israel, Jerusalem

Jews in Israel and across the world are about to celebrate their “New Year”. 10 days later is a fast day, the Day of Atonement. It is a period of celebration, combined with deep reflection.

The past week has seen several leaders in neighbouring areas, calling on the world to take action against Israel, including a call for economic sanctions.  So what is it about Israel, that when they do their own reflecting, gets them so bugged?

Is it because Israel has invented  so many modern technologies which billions around the world take for granted: internet chat, solar window, minute digital cameras, electric cars, disk-on-key, etc, etc, etc.

Is it because of the availability of free speech, so craved for in other countries. Last Friday, Israelis were able to see all of the verbal debate between Netanyahu and Abbas at the UN. However, the screens in Ramallah went blank when the Israeli Prime Minister spoke.

Is it because of the fact that Israel can boast 9 Nobel Laureates, including 5 successes in the past decade alone? For a country which still has officially less than 8 million people and few natural resources, that is an amazing achievement. It is just over 1% of all the awards.

And of course there is the contentious issue of Jerusalem, the centre of three great religions. Well, I ask you: Where else in the world are the praying rights of such diverse sectors maintained, protected and upheld, despite the momentous geopolitical pressures surrounding the city every day? That is some achievement in my view.

As the year 2011 begins to wind down in the econmic dumps, Jews are starting to celebrate the lunar year of 5772. Israel’s economy has had another boom year.  Next year,who knows? But I bet there will still be some jealous people out there, hiding their frustration in politically correct hate, because Jerusalem endeavours to protect its precious freedoms.

Mentoring – having a look at your client’s skill-set

24 September 2011
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Categories: Business, Israel

I am plodding my way through David Clutterbuck’s book “Everyone Needs a Mentor”. Ambitiously described as UK’s number one mentoring book, the subtitle is very poignant – fostering talent in your organisation.

Talent – there are many different ways to apply this word; intelligence, nous, skill, calibre, clear thinking, and….well don’t let me stop you.

In the past week alone, I have come across this issue three times, each one in a different context.

Deborah (not her real name) has been drifting commercially for a few years. With a first degree from America, she now lives in central Israel. She has asked me to look at a new idea of hers. In one of our first discussions, I suggested that she consider what skills she has and how they can contribute to the project.

Briefly, she cut that part of our meeting, declaring the subject irrelevant. Since then, there has been progress, but it has not been rapid. But a few days ago, she found her mantra and asked me for advice aas to what kind of partners she needed.

“What kind of tasks need to be fulfilled?” I responded.

And Deborah duly walked in to my trap, when she asked if I thought she had the right abilities. I started to recall the earlier discussion re talent, and my client was stunned that she had previously ducked out of the conversation. Her face indicated that it is time for a change.

Subject number two is the engaging and – lady, Sarah. Similar to Devorah, Sarah has held a number of positions over the past few years, not all in her field. However, she has now decided to become self-employed and strike out on her own. Can I help her?

Surely, and by the way I quickly wonder: “What are you skills?” Silence! Hard and fast bemusement. It is as if the subject is either taboo or too painful for contemplation or simply the question of a lunatic.

And the amazing thing was that I actually knew the answer, which the client struggled to face up to.

Finally, I ask you to meet 37  year old, Mr Ilan Bracha, who was featured in today’s weekend paper. Ilan grew up playing football and eating fast food in a poor town, south of Tel Aviv. When he enlisted, he found his way into a crack unit.

After the army, Ilan left Israel to “try to make it” in New York. Skipping university, he learnt his business acumen on the street. 15 years later, he is considered one of the city’s most successful real estate agents. How?

Ilan Bracha recalls what the army had to teach him; be smart, think ahead of the enemy (or competition) and be aggressive.  Ilan Bracha knows what he has to offer his 117 agents and does it very well.

It is this understanding of Bracha’s – the open appreciation of his skills – that most mentors try to instill in their clients.

World economic gloom and Middle East anomalies!

23 September 2011
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Categories: Business, Israel, Jerusalem

So, it’s official. Yesterday, Thursday, the world’s banking elite queued up in front of the media to announce that policies  of “muddling through” are passe. Stocks and shares duly plunged, with London’s market estimated to have lost a mere 64 billion dollars…..or was that pounds.

Everybody knows that it is all about handling debt. To be more precise, it is about grown up politicians around the world not having the sense and courage to take the responsibility to manage their own debt.

For example, in America, Democrats and Republicans fiddled around before they just about squeezed out an agreement to ensure that Washington did not default. In Italy, the Prime Minister has been too busy fiddling around per se in order to handle has country’ financial black hole. Madam Merkel in Germany is preoccupied with pending political defeat, and that conundrum is hindering her from bailing out the Euro.

Debt, debt , debt and nobody knows how to make it go away. So here are my two suggestions. They will require some bold moves from decision-makers, who are often intent on just being politically correct. Let’s venture off to the Middle East.

First, I wish to turn your attentions to the oil producers. Much of the debt of Western consumers ends up in the pockets of petroleum’s big guys, who are not often the best proponents of democracy. So, by chance, let me pick on the world’s sixth largest manufacturer of oil, whose leader is rumoured to have laundered a fortune in bank accounts around the globe.

The problem is that I am talking about Colonel M Gaddafi. And nobody seems prepared to empty his treasure trove worth…well probably well over what the London stock market leaked 24 hours ago.

Contrast that thought with the fact that the rich G8 countries – including the faltering economies of America, Italy and Britain – have pledged US$80 billion – I repeat EIGHTY BILLION DOLLARS – to support Libya and others. And now it emerges, that the Libyan rebels have discovered a  US$23 billion “bonus” in tha vaults of the central bank.

If I can spot these misfits, why can’t the politicians?

Item number two is Israel, currently taking its annual whipping at the UN. Understandably, the Palestinians are demanding recognition from the Assembly, while doing a good job refusing to acknowledge the needs of  Israel’s security.

But just step back for a moment and look at Israel’s economy. Despite being surrounded by enemies and seeing European export markets dry up, the IMF is still expecting Israel’s growth for 2011 to climb to 4.8%. Yes, this is revised downwards from previous assumptions, and yes, 2012 will be lower. How much so?

3.2%, with inflation down and unemployment expected to hold steady. America et al don’t come anywhere are not predicted to come anywhere near this achievement. (And the numbers are supported by the Bank of Israel forecasts.)   

So, if world decision-makers stopped criticising Israel and started analysing its strengths, would stock markets be where they are today?

Creating a socially just economy – the Israeli attempt

19 September 2011
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Categories: Business, Israel

Israel was founded in 1948. For decades before and afterwards, the leading political elite came from the socialist side of the spectrum. Members of the kibbutz movements often figured in key positions in society and industry.

Those days have gone. As the economy was freed up from 1986 onwards and with the advent of globalisation, Israel’s economy has usually registered around 4% growth each year during the past 10 years. Jerusalem is now a full member of the OECD.

And yet?

The summer of 2011 saw hundreds of thousands take to the streets in protest at the lack of housing,the  limited availability of reasonably priced housing for first time buyers, inflated prices of basic goods like milk products, and a feeling that the well off were doing well on the backs of others.

To take this one stage further, 16 family groups now control around 50% of economic output. This concentration of economic resources is arguably having a negative impact on different sectors and restricting competition. It is not just a case of envy. The consumer suffers. 

So what has the Israeli government done about all this? Two academic committees are due to report over the next few days. The Trajtenberg subcommittee, looking at changes in the composition of the Israeli budget, is set to recommend diverting sources from the enormous defence expenditure to social or infrastructure  projects. In parallel, there are plans to prohibit the wealthy from controlling large corporations, even when they may barely hold 10% or 20% of the shares.

Many of these considerations have still to be debated before new laws are legislated. Interest groups will work hard behind the scenes. But for all this noise, one small fact has been near ignored.

Back to the OECD. As Sever Plocker pointed out in the Hebrew press, most developed European countries spend around 25% of their budget on social items. In Israel, that figure collpases to around 15%.

If politicians were to understand the implication of that difference, they might finally begin to understand why people are so unhappy with how resources are allocated in Israel. And, amzaingly, these decision-makers might begin to really change things for the better. Now there’s a dangerous thought!

 

Networking – and your so called comfort zone

18 September 2011
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Categories: Business, Israel, Jerusalem

I love the Jerusalem Business Networking Forum. Over four years, Joe van Zwaren and Avigail Frij have set up monthly meetings that have resulted in dozens of business deals and employment contracts.

As the event moderator, I have great fun creating the structure of each get-together. Last week, over a hundred people came to listen to a panel of experts, discuss how to secure a new job. If there was one common theme – it was all about networking.

For example, many human resources specialists are ignoring CVs, deliberately turning to the social media for info on likely candidates. Increasingly, more key jobs are being found via word-of-mouth. Websites exist, which aggregate vacant positions. And these factors are not just typical to Jerusalem or to Israel.

As the participants arrived, they politely sat down in the auditorium and waited patiently. The start was slightly delayed and people waited,..and waited. I took the microphone, explained the situation and then took a risk.

I requested that everyone present move three seats down and start talking to a person they did not know. Surprised looks all round was quickly replaced by a deafening noise of interesting chatter. Networking had taken over. Comfort zones were pushed out the door in an instant! People were moving forward. 

As one person indicated afterwards to me: It was only after talking with and listening to so many other people that they realised how many additional talents they had. They intended to highlight those skills over the next few days.

The Financial Times recently emphasised the importance of such meet ups.

“I have got references for amazing people and I have found amazing people to hire at networking events. Many of my best ideas have come after a couple of drinks at the bar and talking to people,” says Michael Acton Smith, chief executive of Mind Candy, the games company. He started Silicondrinkabout, a Friday night social event for developers in London, named in reference to the capital’s so-called Silicon Roundabout tech hotspot in east London.

Where and what next? Each to their own, but don’t ‘keep it a secret’. Yesterday, I was nervously approached by somebody asking if I knew how he could find space for his expanding business. He looked somewhat quizical when I began to mention all the other people he could speak to.

Israel’s economy – confusing the pundits

13 September 2011
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Categories: Business, Israel

Superficially, it does not look too promising for Israel’s financial planners. The trade deficit widened significantly in August, and the European markets are not looking to increase their imports at the moment. The Tel Aviv stock exchange has lost 25% of its value since January, currently at its lowest point for two years.

And yet, most of the fundamentals are still in place. For example, the banks are not being questioned as in France. Standard & Poor raised Israel’s credit rating last week. And figures released by Manpower show that 25% of companies expect to recruit additional workers in the coming quarter, with less than 10% looking to downsize.

One explanation for that positive sign may be due to the changes in the rate of exchange. The shekel, seen as a strong currency for much of the past year, has began to lose its gloss. It has lost nearly 10% of its value in almost 3 months.

The upside is that this shift will make Israeli exports more attractive and so help to encourage employment.

What next? It is evident that the hope of 4% growth for 2011 will not be met. That said, with inflation in check and a budget debt that can be financed, the Israel economy is still maintaining its positive shape.

World debt, the Arab Spring, and Western “leadership”.

11 September 2011
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Categories: Business, Israel, Jerusalem

The year of 2011 has seen the Portuguese, Greek and Irish economies collapse under the weight of unsecured debt. Italy, a member of the elite club of rich countries called the G8, may be next.

And there is genuine cause for concern that an Italian cold will create an influenza epidemic on the American financial markets.

So, imagine my surprise when I saw a headline that read: “G8 countries pledge US$38 BILLION to Arab states”.   That’s right – 38 billion dollars.

And look who will benefit:

One of the first on the list is Egypt, whose leadership has shown that it is interested in supporting Ankara as it edges closer to Iran. And this weekend, the temporary military leadership in Cairo were amazingly late in preventing the Israeli embassy from burning down, as diplomats literally fled for their lives.

And then there are the pledges for Libya, the sixth largest global producer of oil. The average Libyan may not have benefitted from the petro dollars, but surely Western banks can release money from Ghadaffi’s bulging accounts for use of his former people?

How about some of the richer states like Saudi Arabia and Abu Dhabi chipping in with a couple of bucks for their neighbours? Why does the West always feel so morally guilty?

In comparison, Britain, America et al are trying to introduce austerity packages whilst promoting job packages. What a pickle.

I live in Israel. Last Friday, S&P raised the country’s credit rating to A+. Despite an expected downturn in growth for 2012 of around 2.5%, the agency noted that:

The rating action reflects our view of Israel’s improved economic policy flexibility as a result of strong growth and careful macroeconomic management…Israel is on a credible path toward continued government debt burden reduction and stronger external indicators.

 In September, the next session of the UN will open in New York. Israel will again be criticised for the problems of the world.

Israel’s economy – thumbs up or down?

9 September 2011
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Categories: Business, Israel

“If Israel’s economy is jogging along at 3-4% growth, why are hundreds of thousands protesting. If the government has extra cash from booming tax revenues, why can’t the Finance Ministry hand out a few extra benefits?”

Thus, I was asked on a local radio station this week. The compeer was reflecting a bemusement on the minds on many people. What is happening to finances in the Holy Land?

“15 impressive features of the Israeli economy” is a very encouraging headline from business analyst, David Hunkar. He cites low inflation, record low unemployment, low debt levels around 75%, etc etc. As for the banking system, Hunkar quotes an IMF report from January 2011:

….mortgage loan-to-value ratios are also low by international standards. Banks maintain high liquidity, and interbank and direct exchange rate risk exposures are small.

However….Hundreds, if not thousands, are still protesting on the streets, demanding “social justice”. Go into any of the large supermarkets and you will find a string of unexpected discount campaigns – all provoked by the voice of  ‘the man in the street’. The CEO of Osem, one of the countries largest food manufacturers, publicly announced this week that his wage was obscene and that the company will be trimming down the conditions received by senior managers.

What’s going on?

Before we can answer that, there are further complications to be addressed. On the one hand, the global economy may be “hanging by a thread“, hurtling towards a deep recession. Although the jury is still out on that, any significant downturn will impact negatively on the Israeli economy, which thrives via exports.

Now balance that scenario with impending good news, roughly two years away. It is increasingly apparent that Israel’s economy will benefit from offshore gas exploration – cheaper access to fuel reserves and a large gain in tax revenues for the Treasury. Should this bonus is invested in infrastructure – roads, education, health, etc – the next generation of Israelis should be a very happy group of people.

In many ways, Israel’s economy is a case of “the good, the bad and the ugly”. If the notoriously weak politicians cave in to the demands (pecuniary and social) of the protesters and if there is a serious global downturn, the pockets of the Finance Ministry in Jerusalem will soon be empty. Years of prudent financial responsibility thrown away overnight?

And yet, eBay has just sunk US$20 million into an Israeli start up of eight people. I met several clients this week, seeking aggressive marketing models to break into overseas markets. If the government continues to promote this avenue and spirit of innovation, whilst better ensuring that the oligarchs do not run off with all the profits, then there is a strong economic future ahead for the country.

Is the Israeli economy a good bet?

24 August 2011
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Categories: Business, Israel

Well, on the surface, things don’t look so rosy for Israel’s financial and commercial community.

In one corner, you can find the pessimists, complaining that Israel’s government still manages a restrictive economy in key areas. After all, why can’t local consumers buy fruit and veg from other countries? And it does not help that too many large companies are dominated by a few well-connected families.

And as ever, lurking on the other side of the ring is yet another threat of geopolitical violence: this time from Gaza. Just look at this crazy timeline from Sunday 21 August, as posted by Stuart Palmer. Which modern society can operate properly under such a dark cloud?

  • 06:56 -Short while ago, 4 more Gaza rockets struck southern Israel.
  • 07:20 -Iron Dome intercepts 3 rockets launched from Gaza into Israel
  • 10:00 -7 rockets hit Israel in last couple of hours
  • 12:00 -2 rockets hit so. of Ashkelon, Israel, threatening 112,900 Ashkelon residents; city Pop. = 1/3 of Florence, Italy Pop
  • 14:03 – On Thursday Israel sent 263 truckloads with goods and gas into the Gaza Strip for the Palestinian Population and is sending more today.
  • 16:40 – Fifty Gazans entered Israel for medical treatment while 22 rockets landed in southern Israel.
  • 17:02 – IDF Announcement: In Response to Rocket Fire, Israel Air Force Targets Terror Sites in the Gaza Strip.
  • 17:15 – Another Gaza rocket hit Israel, which is approximatly 11 miles north of the Gaza Strip, threatening the lives of 112,900 Ashkelon residents.
  • 19:27 – Hamas-run Gaza rocket hit southern Israel communities near Israel-Gaza border. A total of 31 rockets struck Israel today.
  • 19:45 – Hamas launched a mortar shell with phosphorus which hit Kerem Shalom today. Hamas broke the international law which states: It illegal to use the substance in inhabited areas.
  • 21:33 – A short while ago two rockets fired from Hamas-run Gaza fell near Eshkol Regional Council.
  • 21:59 – Following the terror attacks emanting from the Gaza Strip, the Israel Defense Forces’ soldiers helped in moving babies to protected wings in the hospital.
  • 23:14 – Three more Gaza rockets just struck southern Israel.

Which country? Well, actually Israel does.

It is not that I am advocating that crises are good for the economy of the Holy Land. Quite the opposite. What I am saying is that Israel has found a way in the past two decades to move ahead, despite everything.

How? Why? Is it the natural desire of a population that looks to change and innovate? The effect of the brilliance of the Governor of the Bank of Israel, Stanley Fischer? A government that has held the budget debt ratio in control despite the previous credit crisis and now financial troubles in Europe?

The future remains unsure for many economies, including that of Israel. The mandarins in Jerusalem have much to improve structurally. For all that, the current fundmaentals look good and need to be protected.

Why mentors look for two sets of tablets

21 August 2011
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Categories: Business, Jerusalem

Rabbi Eli Levin posed a very interesting question to his community on the Sabbath. Which set of tablets had more relevance to the Children of Israel in the Sinai desert?

Was it the first set, which were tumultuously shattered by Moses, following on from the story of the golden calf? Or does the emphasis lie with the second and complete set?

The rabbi discussed the point with his congregation, eventually drawing them to the conclusion that in fact both are needed in life. Strange as it may seem, there are commentators who note that on at least two occasion in the book of Deuteronomy, G-d almost appears to be thanking Moses for his initial act of destruction.

What’s going on? The broken tablets did not go to waste. Eventually, I believe that they too were stored in the Temple in Jerusalem. They represent what could have been. That show how many things in life are started but not completed, yet we are encouraged to continue onwards. They remind us that sometimes our failures also contain many good points.

And, of course, the second set shows what we can all achieve if we really try and produce a “quality result”.

There is a parallel here to the work of mentors, at least in my work as a business mentor.

To simplify what happens in my line of work: People will turn to me with their issue or problem. “What can be done?” they cry out.  Gradually together you chart what is holding up progress and then create a way forward. And then on to the hoped-for perfection.

However, in the background is the thought of what went wrong in the past. I never reject all of the old stories. At the very least, these people were (and still are) full of vision and good intentions. Quite often, there were some very strong commercial positives that have been smothered or snuffed out by poor mistakes. 

And where does the mentor come in?

Steve Jobs once called this an element of “joining the dots”. Not all parts of your life are golden successes. But, the mentor can see the overall path that the client cannot, clarifying the lessons of the good and the bad elements. And that is why we are often encouraged to take two tablets.

So what’s changing in Israel?

18 August 2011
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Categories: Business, Israel

I was speaking to a top advertising exec this week in London. To summarise his question:

A democracy based on strict proportional representation, producing continuous minority governments. Nuclear threats from Iran. Hamas and Hizbollah constantly probing. The Palestinians launching a diplomatic initiative at the UN. How do Israelis cope?

That’s point. Somehow, Israel and Israelis do continue jogging along. The economy is sailing along, even if growth has fallen back to 3.3% per annum. Tourism is at a record high. 28 hightech / internet companies will take part at the International Broadcast Convention in Amsterdam.

And yet, and yet…..Something has happened in Israeli society. It has not been just another hot summer.

First, hundreds of thousands have taken to the streets in demonstrations against the social policies of successive governments. Years of growth may be fine on paper. Unemployment may be at a record low. But as this “triumph” has come at a cost of continually squeezing the nebulous middle classes, there has come a point in time when people have said “enough”.

It will be a brave person to say exactly what will be different. And I am not referring to some cosmetic changes in tax codes or cheaper housing for young families. For possibly the first time since 1982, a social movement has exploded out of nowhere and without any control from the established political leadership.

At the very least, politicians of most persuasions are going to have to spend some time listening and understanding to what is going on. They will not be able to carry out one of their basic functions of leading from the front, but they are going to have to be “reactive”. They are being called on to “respond” in full to the call for change.

Where that will take the country is anybody’s guess. A ‘dash’ back to the past of 1977 shows that some social movements may start with a bang but they can fizzle out.

As for the diplomatic front, the aftershocks of the Arab Spring are coming in to play. Following the fall of Mubarak, the Egyptian border is looking tragically porous. With Assad in trouble, intelligence reports indicate that Hizbollah and Iran are trying to support his position. And for all his gesturing over demanding UN recognition, the position of Abbas as leader of the Palestinians is clearly unclear.

The geopolitical map is moving again. And just as interestingly, in parallel, so is the socio-economic foundation of Israel.

It is time for American Presidential hopefuls and European decision makers to recognise that somebody has moved Israel’s cheese.

Amy Winehouse, gangs and that mentoring thing

17 August 2011
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Categories: Business, Israel

“So what is mentoring?” I am often asked.

I guess that many see this as one of those nebulous phrases, which mean most things to most people. For me, it is very simple – helping others to take a few steps towards their vision, commercial or otherwise.

In the past week or so, I have seen two very different aspects of this work. For example, I read an interview in the Hebrew press with Mark Ronson, music producer and key figure in the life of the late Amy Winehouse.

Ronson was asked how he deals with the ego of the music greats. He observed how Winehouse, Allen or Adele are typical of people who are able to express what many of us mortals cannot. His job is to understand those feelings and then bring them out, so that they are heard in the best way possible.

Is that just producing or something more complex?

Earlier this week, I observed a discussion on Sky TV, featuring a former gang member and now mentor to youth in deprived areas around the UK. I forget his name, but the comments were fascinating. He challenged the government to provide resources that will help misdirected teenagers find a direction for their problems and pain.

The mentor went on to describe children who cannot recall having a table in their house in order to eat a family meal together. He mentioned the fact too many role models for teenagers – sporting heros or politicians – have become embroiled in drugs or bribery. From that point, it is a short step in the chain of logic, which then allows people of all ages to break the law and to riot.

My mentoring is usually less intensive. Often based in Israel, I tend to deal with commercial or financial issues, although by definition they often impinge directly on private matters within the home. But all of my customers are trying to break free from their current set up and move ahead.

Showing them that vision and helping them move on is the art of mentoring, often combined with many other skills.

Why can’t genius enrepreneurs move quickly to marketing

5 August 2011
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Categories: Business, Israel

Dear Entrepreneur: Stop Dreaming and Just Launch That Start-up

Thus pleaded Naveen Jain in his latest blog on Forbes. And he explains how so many entrepreneurs, frequently brilliant in the home skills, spend all their time on perfecting a prototype that they never bring to market.

And it is not just the time that seems to disappear. So do lump sums of financial reserves. And in the end? Well, these talented people risk becoming another “me-too-tried-it-and-got-nowhere”.

This week, I met up with a mentoring client who has strong abilites in the sciences. Over two decades she has written several patents and has tried to perfect several products to infinitum. Naturally, her powerpoint presentations match the length of time she has taken on technology development.

Everytime, I asked a question, the conversation was drawn back to the concept. Using long complicated words, she detailed what the product could eventually do. And, no surprise, there are a wide range of commercial fields open for the platform technology.

Jain looks at the example of Microsoft, which rushed “Word” to market for all of its early faults. However, my client baulked, when I suggested just moving from the computerised drawing board to a prototype. I cannot do that until it is fully ready is a summary of her response.

The question is why. What stops people commercialising their own dream? Are they afraid of mistakes? Do they want to keep full control, even at the expense of making no money? Is it a case of entrepreneurs are just that? They love innovating, because they hate admin or sales or production or anything of real substance.

Successful entrepreneurs are not just clever. They are also brave. They also recognise  their own limitations, which exist in parallel to thier talents, and bring in a team. Then, these geniuses are “in business”.

Israel’s social protest – some sobbering lessons for all

4 August 2011
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Categories: Business, Israel

Israel is in the middle of a “summer of discontent”. Strikes, social protests, and heatwaves; as well as Syrian border provocation, rockets fired near daily from Gaza, Palestinian games at the UN. Not a fun time to be Bibi Netanyahu, the Prime Minister.

If Israelis were to take a step back from the real picture and have a look in as an outsider, what would they learn? Unfortunately, the truth may be painful.

Consider the doctors’ strike, one of the first links in the chain of protests this year.  The whole country has known from the beginning that the Treasury had to capitulate. The injustice was there for all to see, as young hospital doctors often work 36 hour shifts. Only after 4 months of talks and a hunger strike from the head of the doctors’ union have the sides now almost signed an agreement.

Where are basic negotiating skills? Where was the Minister of Health, who also happens to be the Prime Minister? Why did patients have to suffer for so long? Where was governmental responsibility – looking at the bigger picture, not just trying to save a few shekels?

Next, have a good look at those elements of the community, who are not well represented in the demonstrations. Most noticeable by their absence are the religious sections – from ultra orthodox to “modernists”. They also suffer from expensive housing, lack of hospital beds, over priced basic goods.

However, these people have been too afraid to associate with those sections who they do not mix with, socially or politically. And that is one of Israel’s great weaknesses, the inability of vast parts of society to realise that we all live together in one house.

United we may stand, but it is still very much a case of divided we will fall.

Cottage cheese, Facebook and a political void in Israel

3 August 2011
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Categories: Business, Israel

As the “Arab Spring” swept the Middle East in the early part of 2011, Israelis prided themselves on their democracy. Life may be frantic. Hamas, Hizbollah and Iran may pose real dangers. However, the economy is growing at 4%. Unemployment is at a record low. Loads of people are booking holidays overseas.

All was well in the Holy Land…….that is until the diary companies tried to raise the price of cottage cheese one more time. This prompted an irate young adult to launch a Facebook campaign, encouraging a boycott of one of the staple products for most Israelis. Within two weeks, the manufacturers had capitulated; the Knesset (Parliament) had debated the issue; an intergovernmental committee set up new guidelines for the farming industry.

Not a bad result for a 30 minutes work to set up a page on Marc Z’s favourite site.

Within a month, a similar tactic had resulted in tent cities being erected all over the country. This time the core subject is housing and the burden of taxes. The Middle Classes are revolting and the politicians have no clue why. Proposed solutions are being rejected on the spot by the demonstators, many of who are ordinary mothers with prams at their side.

In a country with an open press, what the devil did 120 members of the Knesset miss?

1) How many of them do their own weekly shopping? The stats may reveal true economic progress, but the  ordinary person is suffering in the supermarket.

The price of food in Israel has risen 31 percent since 2005, while in the European Union it rose by about 20% in the same period.

That is massive. Meanwhile, farmers are protected by high tariffs. There is little competition amongst mobile phone providers. The consumer is being ripped off, as the politician is chomping at his free lunches and chatting with cronies. Arrogance rules OK?

2) Earlier this week, in light  of the wave of protests, the Speaker of the Knesset discussed if the Parliament should cancel its summer recess. It lasts for nearly three months. Fortunately, for our 120 heroes, the threat was rescinded and they can go on the trips…. while their voters suffer. The Speaker informed the public that he felt that the government should deal with the problems.

3) And this is my final point. Israel’s voting system is based on strict proportional representation. There are no constituencies. And thus no politician is answerable to 7.7 million people.

Any wonder that protesters have taken to Facebook to get themselves heard?

So you need a vision – 3 Israeli case studies

19 July 2011
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Categories: Business, Israel

Your mentor or consultant tells you that you need a vision, but you have no idea where to start. You do not even know why.

Let me simplify things. Vision is all about knowing what you want your commercial dream to look like in about 5-10 years. It gives focus to your initial decision making.

In the space of 36 hours, I was given three wonderful examples of this exercise, while touring around Israel this week.

About 30 minutes north of Tel Aviv is Utopia Orchid Park. Now you may not expect a small tropical paradise to be located on an old kibbutz, but that is what I found.

Once through the obligatory (?) shopping area, we came out to a mock equatorial waterfall. Orchids, carnivorous plants, butterfly enclosure, cacti and more. Simple, but an effective piece of escapism from the hassles of city life.

And here’s my point. This park was created from nothing. Somebody must have had an idea, and knew what they wanted to put together. The paths around the park fitted together effortlessly, as we moved from theme to theme. Vision, and you can see how they want to develop the place further.

From Kibbutz Bahan, we motored northwards, coming out in the Galilee, just below Safed. We stopped at a modern shopping centre. If you looked carefully, you can still see the old buildings from 130 years ago, made from black volcanic rocks.

And occupying barely 25 sq meters of one of the ancient structures is an innocuous-looking pizza parlour, “Siciliano Pizza”. No website. Just a small sign outside. Don’t ask me why, something encouraged me to go in.

45 minutes later, I left with a very satisfied stomach – possibly the best pizza I have ever had. Not greasy nor overburdened by spicy tomato paste. It was light and very tasty. The table cloths were clean – even looked like something out of a mock Italian gangster film. And the multiple “pregos” from the staff sounded genuine. 

Simple and effective – this guy knows what he is doing and how he wants to appeal to customers.

10 minutes later, I had made it to our boutique hotel, “House in the Galilee” (BayitBagalil). If the pictures on the website look nice, they do not do the place justice.

The hotel is located on the edge of a forest. Everything seems to have been thought through in detail – the Arabic floor tiling, the short distance of the outdoor pool from the hotel itself, an excellent chef menu, a spa offering unique treatments, and much more. And staff that offer you a smiley good morning.

You left feeling wonderful and relaxed, wondering why more people cannot create such an effective business model.

Your turn.

“Unlimited” power? The mentor and the client

15 July 2011
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Categories: Business, Israel

Jillian Michaels is an excellent life coach. Former star trainer on “Biggest Loser” she recently launched her most recent book,”Unlimited“.

 The author takes the – theme of all of us being able to do what we want to, providing we put our mind to it in the right way. Michaels then does something horrendously practical and actually sets out a methodology for people to move ahead. (I am not a fan of the style but the book is an easy read.)

In one of the earlier chapters, a well-known parable is quoted. A ship or plane never leaves port without having a fixed destination in mind, a plan of the weather and other trouble spots on the way, and a team of resources to help with the journey.

So, if you accept that your body is just a means to transport you where you want to go, why are so few of us non-specific in our intentions? Why are we so afraid to identify direct commercial visions? Why do we let ourselves drift, assuming  – even praying – that something will just turn up?

This week alone in separate mentoring sessions in Jerusalem, I meet two fairly youngish individuals, well-educated and well-intentioned family people. They have dabbled commercially here and there with varying degrees of success. I asked them where they wanted to be in 5 years time. What did they want to do with their lives?

Aside from some greyish responses about being healthy, looking after the kids, etc, nothing was too forthcoming. As I put it to them, I could have received the same response from all the other people in the same building. And they agreed. Their respective ships are drifting aimlessly, but at least the captains have now been alerted to the problem.

From a different perspective, I met up with an established client, who has a well-defined aim as to what she wants to achieve and why. Great. Ask her how, and then the ship starts listing.

  • “Oh, I don’t do marketing”, she ways.
  • “Why not?”
  • “I am no good at it.”
  • “Who says?”
  • “Me.”
  • “When did you last do it properly?”
  • “Well, never.”
  • “And yet you are very personable, have many friends, have talked your way into your current job by selling yourself. Prove to me that you are no good at selling.”
  • SILENCE! 

And that continues to be my role with her, showing what she is capable of with a couple of small changes.

Michaels is correct. It is not just that “we can do it”. That phrase was around way before any American Presidential campaign. People need a methodology. And we should be embarassed to ask others to show them how.

Consumers, Facebook and the Israeli conundrum

12 July 2011
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Categories: Business, Israel

Analysts will debate for years the ultimate importance of the internet during the revolution of the “Arab Spring”. In neighbouring Israel, a parallel and separate social change has taken place. Following yet another rise in the price of cottage cheese, a staple for many Israelis at the breakfast table, a facebook campaign led to a consumer boycott and a collapse of the product’s retail price by up to 50%.

Suddenly, everyone is trying to be a hero. Politicians have set up a parliamentary committee…on the price of cottage cheese. Some of the main manufacturers have asked for forgiveness from the public. And what started with the white cheese has spread to other milk products, the price of popcorn in cinemas, and even bus routes.

Zap, a website which allows consumers to compare the price of electrical items, is considering adding food products to its service.

All change……or not?

Let’s start with the politicians, and even add in experienced civil servants. Many of the relevant ministers and advisers are heavily associated with farming groups, who have a vested interest in keeping base prices high. Are you trying to tell me that the decision makers  only woke up to the problem when they read the newspapers one morning? And all they can now do is discuss the price of what their wives buy to put their kids’ sandwiches?

Anyway, the price of the cheese has already began to creep back up. In order to prevent this, the government is seriously considering a plan to support milk farmers. Smell a rat?

As for the consumers themselves, they have always known that in Israel’s small economy is replete of examples of competition and pricing work in opposite directions. Here’s a simple case study: Every beginning of May, the populace is bewildered by reports that owing to the weather having been too hot, too rainy, too windy or not hot – rainy – windy enough, the price of local summer fruits will go through the roof.  And thus it happened again this year.

Import you cry out! Back to the vested interests. And there we go again.

Even facebook revolutions can only last for a limited period of time – never mind whether you live in downtown Bahrain or Tel Aviv. You cannot protest about everything all the time.

What am I saying? 25 years ago, the government finally stopped supporting the textile industry with subsidies and import tariffs. Thousands were laid off in the short-term; prices in the shops plummeted, as overseas items entered the country; room was made for the high-tech sector. The economy rumbles ahead very comfortably.

The food industry has a strategic importance, which cannot be attributable to clothing. However, that does not mean the consumer has to suffer. That does mean that the milking industry should live a false life based on subsidies, proposed by a public sector socially tied to those farmers. 

So far, the facebook campaign has been directed against manufacturers. Perhaps the real anger should be directed towards politicians, who appear to be protecting friends.

Are you busy or are you effective?

8 July 2011
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Categories: Business, Israel

A typical client will often tell me how they are busy. They certainly do not have enough time for family matters. And they definitely have no extra time for any assignments I give them.

Even worse, they will complain that they do not have time for the important things of their business. Now, if that sounds strange, if not actually a huge misfit, then you are correct. But there again, why does it also happen to so many of you as well?

I have written extensively how we often become tied up with matters which are not relevant, but they seem important and are definitely time-consuming.

To illustrate my point, look at this recent story. A potential client has been asking me to start mentoring her. We have already made three attempts at setting up a meeting. She is not located nearby. This is not specifically my area of activity. Once I pushed aside the fog in my mind, I understood that the best I could do for her (and for me) was to suggest that she link up with a rival of mine.

Suddenly, all sides were happy. I had some extra time, to be dedicated towards commercial activity of a more profitable nature.

Another pitfall; Loads of people confuse domestic chores with their business life. One previous client often insisted that he could not meet up with me, because he had to go shopping on a specific day. Well, that one soon bit the dust, as I established just how much money he needed to be earning.

Busy is not the same as being effective. Never forget that nor confuse the two.

And what keeps you effective? This link from ten leading business personalities gives some simple, obvious, successful, but frequently ignored pointers. For example, how many of us claim that they can survive on little sleep? Probably true, but that does not enable you to put in a good performance the following day.

And here is my own tip. It is a simple yoga exercise, which was introduced to me a couple of months back. It takes one minute every day. Don’t ask me why, but my concentration levels have improved mega percentage points since using it.

As for yourselves, think about that one of your actions that you know keeps you on the ball. Then expand on that, bringing it in to play even more. Don’t be afraid of encouraging yourself to do well.

The real poverty in Gaza

1 July 2011
2 Comments
Categories: Business, Israel, Palestinians

One year after Israel naval commandos stormed a Turkish aid ship bound for Gaza, a second flotilla is now setting off with the same aim.

Last year’s attempt to break the Israeli naval blockade of Gaza ended in farce, each side with their own spin. Did Israel break international law? On the other hand, why were some of the participants up for a very violent fight and why was much of the so-called aid out of date? Strange.

As for this time round, let’s move past the rhetoric and ask if Gaza really needs an armada of aid. Was David Cameron correct when he said earlier this year that Gaza is a “prison camp”?

Israelis will argue that Gaza is not what the BBC or New York Times try to portray it as. While not exactly the Bahrain of the Near East, neither is Gaza totally a basket case. For example, the Hebrew newspaper “Yediot” had a 2-page feature with colour photos, detailing how Gaza is developing. The beaches look full and the shops are busy.

The Israeli army issued a video this week of a typical convey of luxury goods passing into the Gaza Strip from Israel. Similarly, a snappy 80 second utube clip clearly reviews how many parts of Gaza have long since abandoned poverty levels quoted by politicians. (You have to wonder who posted the original video.)

OK, so for more objective reporting, I turned to overseas correspondents. A Japanese writer had observed a few months ago that “Gaza and the West Bank are the only places in the world where I have seen refugees drive Mercedes.”

This week, a syndicated article from Ethan Bonner looked in depth at the emerging tunnel economy of Gaza. A powerful opening paragraph observes how: –

Two luxury hotels are opening in Gaza this month. Thousands of new cars are plying the roads. A second shopping mall – with escalators imported from Israel – will open next month. Hundreds of homes and two dozen schools are about to go up. A Hamas-run farm where Jewish settlements once stood is producing enough fruit that Israeli imports are tapering off.

Kevin Myers in a brave analysis in the Irish Independent asks: –

how can anyone possibly think that Gaza is the primary centre of injustice in the Middle East? According to Mathilde Redmatn, deputy director of the International Red Cross in Gaza, there is in fact no humanitarian crisis there at all. But by God, there is one in Syria, where possibly thousands have died in the past month.

After all, if the Palestinian news agency, Ma’an, is to be trusted, there is no shortage of cars in Gaza. The reason for the lowish number of new items is due to the local tax regulations imposed by Hamas.

An interesting blog summed up the forked approach to Gaza’s economy very succinctly:

While violence continues in Syria, Libya, Egypt and Yemen, there is one place in the Arab world where stability is growing as factories and farms multiply, construction booms and unemployment drops.  Ironically, that place is Gaza – the place singled out for international attention as the next flotilla prepares to sail, staffed by leftist loonies bearing solidarity, love and concern for people who are better off than many Americans living in Newark, Detroit, Washington D.C. and New York.  These pusillanimous rescuers are not floating off to Darfur, Congo or Sudan where photo-ops are hard to come by and marauding thugs are unfazed by such concerns as respect for interfering faux do-gooders.  They are not trudging to Afghanistan where sick people and the medical staff who tend them are marked for murder, nor will they insist on seeing Gilad Shalit, the Israeli soldier held captive by Hamas for five years without a single visit by the Red Cross.  Their outpouring of compassion exists only for the purported victims of Israeli aggression – there is no credence given to the barbaric tactics of Hamas planting its military operations in the midst of their own civilian populations, or murdering its own domestic opposition, much less targeting Israeli children on school buses for demolition.

So is the latest flotilla designed to help the people of Gaza or satisfy the dubious ranting of those people claiming to be supporters of peace?

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