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Israeli high tech – what next?

24 January 2011
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Categories: Business, Israel

Mobile tech, software, cleantech, nanotech, etc – Israel has played a leading role in all of these mini industrial revolutions. Israeli hightech accounts for over a third of the local economy’s output.

In the past year, some analysts have been wondering if this “boom” can last. After all, so few companies have gone on to become mega corporate commercial successes. Seed money appears to have dried up. Some export markets, particularly in Europe, have yet to fully emerge from the credit crisis, possibly threatening future growth.

There again, maybe the next chapter of the story will be more positive than ever. Over 50 Israeli companies took part in the recent World Mobile Congress. Intel is now looking to fill an additional 1,000 positions in the country, Celltick has announced plans for 100 new posts. Multinational based in Israel, such as IBM, are rushing to register patent.

These are not isolated islands of success. Only yesterday, Wells Fargo announced that it intended to raise its investing presence in Israel.

And a concrete illustration of what can be achieved was given by  “iwaymobile“, a start up led by an investor and a former mayor from a poor development town. After 3 years of quiet development work, iwaymobile has yesterday launched an internet system for cars. The geek websites are twittering the news all today.

If there is a bottom line in all of this, it probably focuses on the word “innovation”. Israel is a society that encourages people to think beyond problems. This means that in tandem with sensible montary and fiscal policies, the pioneers in hightech know that they can continue to progress safely.

The human body, weak economies and Israel

23 January 2011
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Categories: Business, Israel

The human body is a complex item. Even today, we do not fully understand how the brain operates, and we are full of proteins that have yet to be identified. We are told that only 20% of everyday tablets like asprin ever reach the target spot.

Much the same can be said about national economies. They are nearly impossible to micro-manage. You have to treat all parts with respect and still keep monitoring just in case.

Greece, Ireland, Portugal and even Spain are classic examples of countries, which relied on the “good times never ending”. And there are fears that Belgium may join the list. The Economist has led a discussion of senior analystson the topic; even under a restructuring policy, some of these economies (and their citizens) have a lot more hardship to endure before they see happy days again. The doctors had failed

Why is the Israeli economy different?

Zvi Eckstein is the deputy governor of the Bank of Israel. Speaking at a conference in London earlier this month, he listed the strong points of the economy. These included: –

  • The strength of the high tech sector
  • Decreasing debt ratio
  • Controlled use of interest rates in monetary policy
  • High savings ratio

I would add to that the discovery of commercial quantities of gas. Let us be clear, this will not be available for selling for several years, and very little is suitable for the local market. What is of note is that the Israeli government has stood firm against obvious vested interests, and will levy taxes on the profits. The main beneficiary should be a cash-strapped local infrastructure.

Dangers still loom large. The shekel has appreciated to violently over the past year, partially as a result of speculators. Last week, the Bank of Israel counter attacked, issuing a series of measures ensuring greater accountability and transparency on large transactions. The result has been a 2.5% depreciation within a few days.

Israel has to accept that it has a strong economy. As such, investors are going to want to hold its currency, a major change from the previous 60 years. The managers – politicians and civil servants alike – will have to observe and guide the Israeli economy closely as it matures into manhood, just as they will look after their own individual health.

Choosing marketing content; Simple, ain’t it?

20 January 2011
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Categories: Business, Israel

This week, I met up with three separate groups. One is a classic service provider. The second is establishing a sales campaign via the internet. The third is a very competent artisan. They all are based in Jerusalem, smothered by years of university education and are looking to ramp up sales.

I asked them what content they intended to use on their advertising space; flyers, websites, give-aways, and more. And the kind of responses that I received could be summed up by: “I want people to know how good I am at blah blah,” and off they ranted for another minute of explanations

Fair enough…until I followed up with 3 basic questions. Whatever your medium, whatever your font and colour: –

  • Who is your audience
  • What are they looking to hear 
  • What is going to make you stand out from your competition?

These are some of the basic parameters that will drive content formulation. Two people could not believe that they had missed these 101 guidelines. A third asked me why the view of the client was so important.

These days we are inundated with marketing experts.

They are called strategists, consultants, sales’ dynamos, social media experts, website optimizers and so the list goes on. Any senior manager, struggling to raise his revenue figures, cannot fail to miss these guys. Their blogs and podcasts and tweets are to be found in every dark corner of cyberspace.

So what are my clients missing? Despite being surrounded by information and suggestions and despite being exposed to a culture of commerce, they were using a marketing opportunity as a platform for their ego. In fact, selling is all about helping and enabling your potential customer to make the correct decision. 

Simple, ain’t it?

Ask your mentor: Is being moderate good enough?

18 January 2011
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Categories: Business

As a business mentor, I come against this theme on a constant and regular basis.

I realise that the client is not progressing. I ask searching questions why they are holding themselves back. I can see them struggling to spurt out any answer, except for the one on the tip of their tongue. I prod a touch more. Silence. One more jab and……out comes the pain, sheepishly and quietly.

Basically, the client refuses to take the next step because they are afraid that it – the final product or service or whatever – will not be “good enough”. The outcome will be “OK” at best. They will be judged as MODERATE by customers and friends, and that just will not do.

I then look at the client. Some appear relieved to have finally “admitted their guilty thought in public”. Some are embarrassed. Some give me a quizzical face as if to say: “surely you feel the same way”.

So let’s consider why “it won’t do”.

From our earliest years, we are conditioned to do our best.  We must be excel. The implication is that any alternative is a disappointment and just not good enough. You simply end up being “moderate”, and you would not want that to happen, would you? And that is the mindset many of my clients carry forward into adult life and hang on their professional career.

How many of us received school reports that said that “you can do better”? The teacher was probably correct. But how many of us also received a parallel comment that said: “However, what has been achieved to date is also pretty good”? If only somebody had offered me that bit of hope.

Now, let’s revert back to my clients. I ask them to look around and show me something that is “excellent and perfect”; a piece of furniture, a cup of coffee, a piece of attire, anything. And of course, nothing can be found. I then ask them to point out something that is pretty good, and here there is no shortage of responses.

Then I pose my client a very simple question: While, I am sure that the creators of the furniture or drink or clothing are striving for excellence, is what they have achieved very good? Is it acceptable?

Ergo, just because you are not perfect does that make you moderate.

As a business coach, I would rephrase that statement. Sure, it is wise to strive to be the best, but you also have so much to offer your own customers who so are “very very good”. Is that being moderate? Who cares? Go and enjoy life without any false guilt trips.

Israeli economy: victim of its own success?

14 January 2011
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Categories: Business, Israel

Who would have believed that the shekel would turn into one of the most powerful currencies in the world.

Thus spoke PM Netanyahu this week. Over the past 12 months, the Israeli currency has appreciated 6% against the dollar and double that against the Euro. Thus, exports have become that more expensive to zones that import over 70% of Israel’s tradeable items. Can that last?

The head of the Israeli Manufacturers’ Association summed up the delicate situation very well, when he observed:  “Over the past three quarters, exports have weakened and job creation has come to a halt. We are very concerned about activity in 2011 and are urging decision makers to take the necessary steps to strengthen the dollar.”

As with most things in the Middle East, nothing is simple. The problem has been caused by success. The fundamentals of the Israeli economy are very good.

This week’s press release from the Bank of Israel is full of glowing predictions for 2011. Unemployment down to 6%. The debt ratio falling below 80%. Growth is set for just under 4%.

Here’s a specific example of what I mean. The Israel tourism industry in 2010 broke the 3 million visitors figure for the first time. As for 2011, the hope is to host 4 million overseas guests, which will add another 15,000 jobs to the sector.

The 2011 budget for capital investment and infrastructure development stands at NIS 375 million, of which about NIS 205 million will be allocated to encouraging investment in tourism and increasing the hotel supply: construction, expansion and conversion of hotels mainly in Jerusalem, around the Sea of Galilee and the Galilee region. A further 3000 hotel rooms are expected to open around the country by the end of 2011. About NIS 170 million will be allocated to infrastructure development including the development of tourist cities, trails, national parks, boardwalks etc.

As with more traditional parts of industry, many of the multinational tourism groups are realising that Israel offers potential rich pickings and becomming involved.

2011 offers many challenges to the Israeli economy; achieving a competitive rate of exchange, finding a suitable tax base for an emerging energy industry, a stock market that shows no sign of cooling down, etc. Above all, the bureaucrats will need to ensure that those often-praised fundamentals remain true and transparent.

UK and Israeli banks

12 January 2011
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Categories: Business, Israel

Over two years on from the onset of the credit crunch and the UK banking system is still looking over its shoulder at what was. The head of Barclays, Bob Diamond, has called for “sounder and safer” bonus schemes.

“Sounder and safer” is newspeak for “how can the top guys get the money they want – maybe even deserve – without the public and press screaming stop thief?”

Here’s a cute suggesting – how about banks giving the public some value for money? Yes, this probably is a revolutionary concept for top financial managers, whose offices are so away from the ground floor that they have forgotten what reality is.

Contrast this to the Bank of Israel’s HQ in Jerusalem, not very high at all. The governor, Stanley Fischer, took the post after a brilliant career amongst the grand in international banking.

Yesterday, the Bank of Israel announced the results of a three year campaign to encourage Israel’s banks to provide more efficient services and become more competitive. The results?

  • Standard banking fees are down 13%
  • Fees on credit cards are 20% off their peak
  • It is clear who provides the cheapest (or not) services and for what kind of customer.
  • Websites are becoming more using friendly

There is probably a long way to go yet. However, after many years of public disappointment with fat banking profits, Israelis are beginning to feel the improvements.

Meanwhile, back in the UK…………

Coexistence in Israel?

8 January 2011
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Categories: Business, Israel

Just before the Christmas holidays, I hosted some delegations from Europe. Some of the visits entailed me guiding them around one of Jerusalem’s leading hospitals. They witnessed at first hand a multi-ethnic staff treating Jews, Moslems, Christians, and whoever else came through the door.

Some of the tourists expressed surprise. In comparison to what they were used to seeing about Israel via the international media, this was not what they expected to see. Was it typical, I was asked.

How to answer? In Jerusalem, you have ultra orthodox fighting (almost literally) against the state authorities. In the Palestinian territories, minority extreme sections of Israeli society can be seen inciting Palestinian neighbours. Bedouins for years have not received social services available to others. And so the list goes on.

Yes, it is easy to criticise, but then which society is perfect. Just look at what is happening in Sweden today, seen for decades as the bastion of a politically correct land.

So, if Israel’s hospitals are getting it right, day in and day out, what else happens in Israel? can a pressure cooker of 7.5million turn out all right?

Well, once a week, I do my shopping at a branch of the Rami Levy supermarket chain. I can assure my readers that a fair proportion of the buyers are not Jewish. And the latest outlet opened up in Gush Etzion, an area where the two sides have distrusted each other continuously.

What about the religious and non religious battle ground, where often comaprisons are made to Iran. Go the kibbutz Shomeriyya in the Negev desert. In the past decade, the farmers have been joined by a group of observant Jews, who used to live in the Gaza Strip and were evacuated in 2005.

On the surface, apart from an id card and passport, the two sets of people conduct their lives in very contrary ways. And yet, they have found how to put aside political and religious differences. By talking, they realise that they have more in common than could be believed. Even if the “application” is different, ideals and aims are similar.

The Abraham Fund has dedicated over 20 years of efforts to bring peoples of different religions in Israel to work together. Elwyn serves over 2,500 children and adults with disabilities from all sectors find their positions in society. etc, etc.

Last month, the Yediot newspaper led with a story about refugees from Sudan and other parts of Africa. A moving photo showed the sufferers, walking through the desert and crossing illegally into Israel. As my wife said, we must be doing something right for these people to want to come here that badly.

Entrepreneurs, innovation, and the global market

7 January 2011
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Categories: Business, Israel

The new year of 2011 is barely a week old, and I have already been asked by 2 seed stage companies to help them. Bottom line: do I believe that they can convert their fledgling ideas onto a product suitable for the global market?

Well maybe not by next week, but certainly they have a chance. And why?

The Financial Times has led a discussion on why multinationals are increasingly sourcing innovative new products and technologies from emerging economies. A classic example is how Coca Cola’s new fruit juice started its life in China.

I have read elsewhere that General Motors is investing US$5 million in a mobile phone charger. The product was developed in Israel and produced in China. The list goes on.

So what is going to allow my entrepreneurs to make a difference and succeed? How are they going to develop in order to catch the eyes of the big players?

Luck and ready access always help. More specifically, a recent survey from American universities highlights the importance of old-fashioned common sense:

Entrepreneurs, especially during the early stages of their start-ups, have to think on their feet…..They have to make the best decisions possible in the least amount of time. They need to act. Practical intelligence empowers them to act quickly and confidently.

How to do that? First and foremost, emerging CEOs should not think that they have to do everything by themselves. We are so trained to believe that the only success that counts is one of perfection and which is obtained on our own.

Nothing could be further from the truth.

Here’s what I mean. I was meeting my 2 seed stage companies in good surroundings. I encouraged them to look around themselves. They realises that what they were observing was achievement and success, but not perfection. And these “impurities” had not stopped the owners from setting out and moving ahead.

The follow on from this is to find a mentor. All business people need somebody that they can trust in order to bounce ideas off them. Even if the two people disagree, the final concept is often crystallised in to a more sustainable form.

Paying a few cents for a few words of support can even lead to the yellow brick road and commercial joy.

Reasons to invest 100m Euro in a Palestinian start up

4 January 2011
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Categories: Blog, Business, Israel, Palestinians

The European Commission decided today (22.12.10) to provide an initial financial package worth €100 million for the Occupied Palestinian Territory under the 2011 budget.

Now that is a pretty cool donation, especially from an international organisation also financing at least 4 economies suffering meltdown. And this public money is going to end up in an economy that does not officially exist, at least as a member of the UN.

This is not the only set of Western taxpayers funds ending up in the Treasury of the Palestinian Authority. The UK recently confirmed that it had contributed approx US$45 in 2010 to the World Bank Trust Fund, which “pays the salaries of public sector workers in both Gaza and the West Bank”. Japan gave US$12m in early December. Mrs H Clinton came up with US$150m. And so the list seems to go on.

Conglomerates from the private sector have also joined the game:

  • Cisco will invest $5 million in a venture capital fund for Palestinian startups.
  • Google is investing $2 million which will include contributions to the same VC fund and to the local operations of NGO Mercy Corps.
  • A long term commitment by HP to expanding business operations in Palestine and local collaborations with USAID.
  • Intel will expand cooperation with Palestinian IT/software firm Asal Technologies.

Is this a wise bet on the future or just politically correct? SKY TV recently reported on the new strengths of the Palestinian economy. Google Bethlehem at Christmas and you will find plenty of info on how Manger Square has been full of tourists this year.

According to David Makovsky of the Washington institute for Near East Policy, Prime Minister Salam Fayyad claims that 120 schools have been built in the last decade. Those and 3 new hospitals, 50 health clinics, hundreds of new or resurfaced roads, etc, etc. And tax collection was up 50% in 2010, although starting from a meager base.

Bottom line for Fayyad is that poverty is down a third as are expected contributions from foreign assistance.

 It’s all looking very positive….that is until you start to ask a few questions.

1) The European press release above recognises that “the EU now fulfils by far the pledges made at the Paris Donors’ Conference in December 2007.” Good. Encouraging. So where are the equivalent donations from Arab countries. What do they know that is stopping them from fulfilling their pledges and thus investing?

2) If the World Bank Trust Fund is asking the UK and others to contribute to salaries of public workers in Gaza, they are effectively paying the wages of Hamas officials. Hamas is listed as a terrorist organisation. As I write, news came through that Hamas has illegally arrested over 3000 political opponents in 2010 alone.

3) If the Palestinian economy is improving so much, why is so much aid needed in the first place.  The World Bank talks about 8% annual growth. New luxury hotels are to be seen in Gaza and in the West Bank. Israel is no longer withholding tax revenues as all debts by the Palestinian Authority are accounted for. Even the number of manned Israeli roadblocks in the West Bank is only 14 in number, thus allowing for easier commerce.

So here’s my issue: When an investor or venture capital group seeks to become involved with a new project, they look at the skills available, the team, transparency, history, and future accountability. They consider who else will share the risk. Above all, is it possible to assess the true need.

Would you invest 100m Euro in one go under such conditions? There again, in this case, it was signed off by those who are not necessarily accountable.

Israel’s economy for 2011: Positive trends to watch

3 January 2011
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Categories: Business, Israel

The year 2010 is behind us. Despite downturns in Europe and a currency that has been revalued over 15% in 18 months, Israel has achieved 4% growth, yet again. And much of this is export derived. So what’s in store for 2011?

Many of Israel’s trade partners have entered January looking over the shoulder at the past. Greece, Portugal, Ireland and Spain are still in recovery mode. The UK retail sector as usual will spend weeks working out if the winter sales were successful. Germany and Australia are the rare exceptions to a non-too-optimistic OECD picture.

But in Israel……

Gas exploration will forge ahead. Many of the finds will not produce direct revenues for a few years and then they will be directed to overseas markets. However, the new resources will drive up the stock market and create jobs at primary and secondary sectors.

At a macro level, the government is slowly pushing ahead with tax reforms. Personnel tax brackets have been updated from the first of the month. Corporation tax has dropped another notch to 24%.

And the government is finally learning where it can make a difference to the lives of citizens without playing “big brother”. For example, Israeli society is dominated by the use of mobile phones. The service suppliers have churned out billions in profits with poor service in return – I write from experience. Fortunately, charges from landline calls have just been slashed. And licenses have been handed over to two extra competitors. There is hope.

What else? It is probable that a possible real estate has been burst. The stock market is breaking new highs. The one real fear is that trading partners will not perform as needed, thus acting as a break on further growth.

As for innovation, the trigger for much of this growth, I have 4 new start up clients due to commence work with me during January. Israel’s economy is on the move.

Powerpoint presentations; a quick word before you start

27 December 2010
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Categories: Business

Over the past month, I have been asked to advise or help with several presentations.

I could easily have directed people to some wonderful help sights and told them to get on with it. One of my favourites is “slideshare“, and specifically the guide which encourages to steal the presentation. Worth the 5 minute browse.

If you want something more hands on, consider the critiques on Steve Jobs. These really tell you how to be simple but effective.

And of course there is the now ubiquitous 10/20/30 rule, as proposed by Guy Kawasaki.

Now, I am no tech wizard with microsoft tools. I am no genius with choosing new fonts of colours. I do encourage people to think differently before even drawing up the initial slide.

We all know the situation. You have to prepare something. And the first question is often along the lines of: “Right, what shall I tell them”.

For me, this is the wrong starting point. How about considering:-

  • Who is my audience?
  • What message do I want them to take away?
  • What action items do I want them to follow up on?

A little bit of thought beyond the immediacy of yourself will help you to generate a much more powerful creation. And here are some examples of what I mean, when this action is not taken.

How many start ups use multiple slides to describe their tech, when an investor simply wants to know what and when they are going to receive a return? Or consider the inventor who is so chuffed explaining his tech can do that he forgot to explain how it can be monetized?

And how many presentations have you seen when all the speaker does is effectively read from the slide, which is usually so full of text that the font is annoyingly small? Not much left for the audience to do but go to sleep.

 Bottom line: as YOU start planning YOUR presentation, think about OTHERS.

What happens when you boycott Israel

24 December 2010
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Categories: Business, Israel

It’s almost Christmas time, the season of smiling at your fellowman…except if they are Israeli?

The year of 2010 was marked by an increase international campaign to delegitimize Israel. The musicians, Elvis Costello and the Pixies, cancelled a concert in Tel Aviv at the last moment. This week in Seattle, a series of adverts were placed on public buses, decrying so-called Israeli war crimes. In London, there are now regular demonstrations outside retailers stocking Israeli products. And so on, at great length.

Years ago, if you wanted to protest about Israel, you stopped buying Jaffa oranges. So what would happen today, if you were to ignore deliberately Israeli products?

Teva is considered the second largest manufacturer of generic drugs in the world with facilities in Europe and in the USA. Many of their products end up in the bodies of the poor on all continents. I suppose you could just avoid the company, and either suffer or hope that you could afford the alternatives.

What about Argo? Their equipment is helping thousands of people confined to wheelchairs to start walking again. One application was featured recently on Glee, the award-winning tv programme. Of course, paraplegics in Seattle may wish to remain immobile, but me thinks this unlikely.

And then we have fans of Lady Gaga, Bruce S or U-2. These artists and others depend on technical support from Waves Audio, based near Tel Aviv. Like the music or not:

Waves Audio … will be presented with a prestigious Technical GRAMMY® Award during the GRAMMY Week celebration in February 2011. ……With this presentation of the Technical GRAMMY®, Waves joins a prestigious list of previous recipients which includes such well-known names as Apple Computer, Inc., Sony/Philips, Shure Incorporated and Yamaha Corporation.

And we must not forget Intel. 95% of people reading this item will have a computer whose chip tech had been developed in the Holy Land. And the next generation is already in the planning stage. So, switch off your computers and stop listening to most modern music?

So what is the boycott all about?

The true hypocrisy of the boycott was exposed on a picture of the front page of the newspaper Yediot, this Christmas Eve. The reader saw a stream of illegal refugees from Sudan and other parts of central Africa hiking across the Negev desert into Israel.

You have to conclude that Israel is not that bad for these people to come here. And, assuming that they are persecuted in their home countries, why are those protesters against Israel not uttering a word of behalf of these poor souls. Anti-Israel or just old-fashioned hatred?

When a “key performance indicator” is not so keyed in

23 December 2010
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Categories: Business, Israel

Coincidence?

Earlier this week, I was told of a report commissioned by a leading Israeli company, which wanted to track customer responses. The bottom line did not make pleasant reading. Complaints of arrogance, misleading pricing policies, poor products, and other comments nobody expected to read.

And yet this was a company doing well. Most key budget targets had been met over the outgoing year.

Meanwhile, my IIB colleague, Siu Ling, has directed me to “Misleading Indicators: how to reliably measure your business”. Her bottom line: not all key company indicators are measuring what you think they are.

The results can often be disastrous and confusion. What can be done? Remember, businesses live and thrive in a dynamic situation. Just remember why you cannot take anything for granted.

Managing the expectations of partnerships

18 December 2010
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Categories: Business, Israel

“Get the expectations clear up front to prevent your business partnership’s failure.” Jean Charles

I was sitting with a new client, listening to how they wanted to set up the business. Super qualified, experienced, dedicated, I heard the rich and thought out commercial philosophy in full. And now is the time to set up their own legal office. Fine. What were my thoughts?

Fine, I wanted to agree, but I had the suspicion that there was a “fly” disturbing our conversation.

So my experience as a business mentor told me that it was time to prod. And very quickly, we were not chatting about their own letterhead, but being associated with partnership. Their former boss in Jerusalem, who is much respected, wanted my person to set up in Tel Aviv. And this would be a partnership. Good.

Very good. They would be linked to a fine national team. They would not need to search for the first clients, ensuring an initial revenue stream. Groovy!

And one last question: Did this concept match their own philosophy and approach? Well, not exactly. And suddenly, I had the “fly” in my sights.

A few rapid questions later, and the truth began to eek out. No, there was nothing wrong professionally or personally with the boss of old, but he had rejected the initial suggestion of partnership. So what was their understanding of a “partnership”, I asked.

And suddenly, a chasm opened up. It appeared that assumptions had been made by both sides. The expectations of all had not been defined, and the road t confusion was wide open in front of them all.

In 1997, Don Miguel Ruiz wrote a short but brilliant book about the Four Agreements Of Life.  

Don’t Make Assumptions. Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstandings, sadness and drama.

I encourage my readers to find a copy of the book.

If that is retirement, how do I get there?

15 December 2010
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Categories: Business

Yesterday, I received this joke about retirement

Question:  How many days in a week?  
Answer:  6 Saturdays, 1 Sunday.
Question:  When is a retiree’s bedtime?  
Answer:  Three hours after he falls asleep on the couch. 

Question:  How many retirees to change a light bulb?  
Answer:  Only one, but it might take all day. 
Question:  What’s the biggest gripe of retirees?  
Answer:  There is not enough time to get everything done.

Question:  Why do retirees count pennies?  
Answer:  They are the only ones who have the time.  

Question:  What is the common term for someone who enjoys work and refuses to retire? 
Answer:  NUTS!   

Question:  Why are retirees so slow to clean out the basement, attic or garage? 
Answer:  They know that as soon as they do, one of their adult kids will want to store stuff there. 

Question:  What is the best way to describe retirement?  
Answer:  The never ending Coffee Break. 

Question:  What’s the biggest advantage of going back to school as a retiree? 
Answer:  If you cut classes, no one calls your parents. 
And, my very favorite…. 
QUESTION:  What do you do all week?  
Answer:  Monday through Friday, NOTHING….. Saturday & Sunday, I rest.

And that was the abbreviated version. But behind the joke is a more pertinent question. If retirement is so wonderful, how can we get there that bit quicker?

As a business mentor, I effectively ask that question almost every day of my clients. Whether as a start up or as an on-going concern, they come to me with great ideas and say “I’m stuck – Help me!”

All too often, we discover that two key ingredients are missing.

VISION – it is often incomplete. The concept of why you want to do something has not been fully thought through

TIMELINE – people tend to be so concerned with immediate tasks that they forget about longer term milestones. Perspectives become lost or muddled.

Yes, there are may solutions. They often relate to the issue of instituting building blocks or aids that will allow you to look beyond the present. For example, start working with a friend or mentor. 

That way, you might be able to retire that bit earlier and really start to do the things you want to do and deserve.

Why investors continue to show faith in Israeli hightech

13 December 2010
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Categories: Business, Israel

The annual Globes business conference in Tel Aviv is a great occasion for Israelis to reveal their economic capabilities. After all, Israelis never need to be given a second chance if asked to show off.

And there is much to shout about. At the macro level, GDP will have moved ahead by around 4% in 2010. Unemployment dropped to under 6%. Israeli scientists, who have created successful careers abroad, have begun to find jobs locally. etc etc.

I noticed this morning a series of press releases that show how well parts of the economy are performing.

NICE Systems Ltd. (Nasdaq: NICE), the worldwide leader of intent-based solutions that extract insight to impact business performance…..has been recognized as the worldwide leader in speech analytics implementations, with a 34% market share, …..by DMG Consulting LLC, a leading analyst firm.

That is very welcome praise indeed for this high tech outfit, based north of Tel Aviv in Ra’anana. And they are not alone amongst Israeli companies receiving glowing reports: –

 ClickSoftware Technologies Ltd. (Nasdaq: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry… has been named as a winner in the ninth annual Mobile Star Awards™ program, hosted by mobile technology news portal MobileVillage.com.

A leading internet investor’s guide, INVESTORS.com,  summarised the issue very clearly.

If you’ve been sifting for top-rated stocks, you’ve probably noticed a gaggle of stock-market winners from Israel popping up on your screen recently. And a lot of these hail from high-tech industries.

Israel? Talk about a country with problems. But some basic features of its economy compare well with the U.S. and Europe, though not against emerging-market stars such as China, India and much of Latin America.

Budgeting disasters – 2 Israeli case studies

8 December 2010
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Categories: Business, Israel

This week, I learnt of two actual stories, where accountants and economists tried to save money, but lost a fortune.

At a macro level, last week Israel needed international help to put out a raging forest fire. Nothing wrong in seeking assistance. However, the need to issue an SOS was sparked (pun intended) by over a decade of de-investment in the country’s fire services.

The Finance Ministry had refused to approve requests. The Ministry of Interior and others had refused to insist on budget approval. Meanwhile as lives and homes were literally burnt away in seconds, the tv cameras filmed fire engines that would not start. It has been exposed that the main training ground cannot run “real” exercises, because neighbours have complained of the danger! Staffing levels are way below international comparisons, and so the list of unbelievables goes on.

How much has been “saved” over the past few years through this false allocation of resources? The starting estimate is around 100m nis or about US$30m, and robbaly several times that amount.

And in today’s Hebrew newspapers, we read that Israel’s budget debt for 2010 will be 40% less than predicted. Whichever currency you choose, that is a saving of billions. In the words of Monty Python, “say no more…”

Shortsighted? Well, how about this one. A specific Israeli company has been gradually losing its dominance. A new marketing strategy is being devised. Great. This involves “getting the word out”. Great. And much focus is being placed on the main annual exhibition in the sector. Fine.

Fine, that is until the overseas head office of the multinational asked for a justification of the exhibition budget. How many deals will be concluded that want to know. To date, the budget request has been rejected by the foreign senior finance staff in their comfortable new offices.

Meanwhile, at a lower level, an economist is demanding that the Israeli subsidiary sends in the final sales expectations for 2011.

I must assume that the numerous members of the planning staff at head office have cut their on-line free subscription to the Harvard Business Review. This magazine published numerous articles during 2009 and 2010, explaining how great companies are born out of recessions, when they SPEND on marketing. 

Why is the obvious so unobvious to those who should know better?

Underperforming managers – why?

6 December 2010
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Categories: Business

According to a new survey released this week by the Australian Institute of Management, one third of bosses admit they’re underperforming. When asked if they could be putting more effort and input into their role, 34 per cent resoundingly said yes.

Well, they say that admission is the first stage towards solving the problem. And not surprisingly, there is a direct impact on more junior members of staff. They feel under appreciated if not misunderstood. One big recipe for disaster.

Well, there are lots of techniques for resolving these issues; group dynamics, bonus systems, away days, etc.

My experience increasingly points in another direction: appreciating your time and then managing it efficiently. Here’s what I mean.

Many managers often feel that they work hard, but just never get ahead of the “ball game”. When given a few moments to reflect, they often find that thy do not use their time properly. Here are just three reasons:

  • prioritising the wrong things
  • never getting around to subjects they enjoy
  • spending too much time on non-productive subjects

Result? Underformance, disillusionment, passing on unnecessary pressure to colleagues and staff, and thus our familar circle of departmental boredom and ineffciency kicks in.

The question is how to move forward. (See next blog)

How strong is the Israeli economy?

2 December 2010
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Categories: Business, Israel

The IMF has just given the Israeli economy a cautious thumbs up. 

Israel passed through the global recession swiftly – the fruit of decisive policies – and strengthened macrofinancial policy frameworks. The challenge now is to sustain growth and low inflation while boosting medium-term prospects – in the context of continued global uncertainty, capital outflows from advanced countries, shekel appreciation and a housing market that is overheating.

So where to next? The “PIIGS fallout” does not help. Exports to these countries are down and there is a US$0.8 billion bank exposure to the region.

On the stats side, unemployment rose slightly this week for the first time in nearly 24 months. And the third quarter saw an unusually sharp fall in manufacturing output, particularly in the pharma sector.

The stock market remains one area of tranquility for investors. Over the past year, it has jumped close to 50%. The top leading 25 companies have seen their combined profits leap forward by 17%.

What does all this mean? The basic fundamentals are in place. However, as the IMF and the Bank of Israel’s continue to shout, this platform needs to be protected, constantly. Rule number one – no giving in to economic and politicl interest groups!

Networking – avoid the crowd & get to the top people.

29 November 2010
1 Comment
Categories: Business, Israel

I have just attended a London meet up of hundreds of people, considering business opportunities in Israel. And one of the questions that popped up repeatedly in different forms was how is it possible to seek out decision makers in a foreign country, where English is only the second language.

One answer I threw back was to use a recognised local business mentor. But is that enough, especially if you are in a new environment?

This weekend, I read an article about networking your way to the top, avoiding the traps along the way.

  • Get to be known by being useful
  • Take charge of new situations, without dominating
  • Expand contacts book
  • Research who you are going to meet
  • Sit / stand opposite those you wish to influence

Simple enough if you are in a meeting scenario. But what happens when you are faced with an event of some kind?

  • Prepare some opening lines in advance
  • Avoid taking about yourself too much
  • Step outside your comfort zone and drag others into the conversation.
  • Try to show honest interest, even empathy, in what is being said to you.

If you let a strange language remain as your handicap, you will never move onwards.

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