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Those obvious mistakes in business

5 October 2010
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Categories: Business, Israel

A few days ago, I came across an article titled: 7 Common Sales Mistakes, and How to Avoid Them.

While the article concentrates mainly on technical or procedural aspects facing a company, I decided to run a check on google. Amazing – similar titles brought up a whole library of articles. It would seem that the world over, experienced or clever or respected leaders of commerce are making basic and simple mistakes.

Well, this just happens to others, doesn’t it? No! Brain storming for 15 seconds, I wrote down 4 examples of “unbelievables” that I had come across just recently.

The wrong business card: Last night, I was shown a business card from an international company that specialises in creative products. They employ specialists to highlight special and wonderful features of their latest inventions. But their card….

The font and graphics were so jumbled that I could not read the name of the firm, with or without glasses. And the paper had been laminated, Thus you could not scribble initial notes on it. I wonder how many opportunities they will miss for not getting the basics correct.

How not to approach strategic partners:  It has happened to me twice in recent weeks, once re exports contacts overseas and a second time re potential investors, who I had been asked to approach on behalf of young Israeli companies. “You speak English good. You tell them about us.”  

And then came the reality check, as I explained that life ain’t that simple and explained: “Even if they like the concept, the potential target will want to see a basic website. You do not have one. They will want to see a sample or pilot project. Again, no evidence. So, what do you want me to say?”

After the silence, the response was” “You mean; we have to invest time and in preparing a serious package for a partner?” Er, yes!

Not following up: I have met two companies who have not followed up delivered quotes or sample requests. They have simply let the opportunities float on by. And then they wonder why revenues are in the dumps.

Unnecessary credit crunches: Even financial controllers are not blameless. How many of them fail to deal with bad debts or customers that fail to pay on time? The money wizards are prepared to increase the strain on company finances rather than be bothered to take affirmative action. Well, at least  they have protected their comfort zone.

Are these stories funny or worrying? Either way, it just goes to show that no decision maker is immune to such silly actions and needs to find checks to prevent them happening.

Protecting economic achievements – Israel 2010

4 October 2010
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Categories: Business, Israel

Israel’s economic progress, despite a global recession, has been well documented and described. The economy is expected to grow at 4% in 2010 for all the hangover of the credit crunch and troubles in key European export markets.

And there will be exciting times ahead. The impact of revenues from new energy resources will be enormous. Infrastructure projects like the education, transportation and health budgets can expect a major boost over the forthcoming decade.

But, and there is always a but, nothing is perfect. Stanley Fischer, Governor of the Bank of Israel, has declared war on the housing market. With increasing noise over the past year, his team has let it be known that they are not prepared to see real estate prices rise and rise and rise.

To date, the preferred weapon of attack has been the rate of interest. They have just been raised to 2%, and further changes are in the pipeline.

The downside has been the effect of the shekel, which has strenthened significantly against the US dollar and other countries. All this means that exporters are suffering. Profits levels are under threat.  

Fischer knows that the stakes are high. In parallel, he has publicly announced that he will continue to buy dollars on the open market. After all, exports make up 40% of Israel’s economic activity.

Anybody understand why the Israeli government cannot release land for new housing, which would quickly rectify the situation?

What you do not hear about tourism in Israel

1 October 2010
1 Comment
Categories: Business, Israel, Jerusalem

The summer is drawing to an end. The Jewish New Year season is over. The tourism season is winding down.

A success? Well, the total number of visitors is expected to be close to the 3m figure. Yes, that will be an Israeli record with a particular boost coming from East European countries. And yet this is still small compared to most other travel spots. For comparison, the Czech republic draws in 6-7m each year.

So, once in the Holy Land, whatcan these people get up to. Let’s ignore for the moment the standard Jewish and historical sites like the Wailing Wall or the Yad Vashem Holocaust Museum. These appear in all the brochures.

In the past week, nearly 7,000 Christian pilgrims converged on Jerusalem for the annual celebration of the Feast of Tabernacles. From here, many spread out to excursions around the Sea of Galilee or to visit commercial opportunities.

For the young, Israel is seen as an opportunity to join the music tours. Mr Ozzy Osbourne was heard rocking in Tel Aviv this week. And if you had bought cleverly, you could have received double tickets for Elton John and Rod Stewart, who performed a few days after each other in June. With the list of other performers ranging from Neil Sedaka to Rihanna, the noise channels in the Middle East were not solely dominated by international politicans.

Another cool outlet was discovered by Aussies. Last week, hundreds of them emerged out of kibbutzim, the desert, beach dives, even offices – all congregating on a large Tel Aviv pub at 7.00am on a Saturday morning. The event was the Aussie rules football Grand Final, which was being shown live. Last year, even the ambassador attended. None wanted to miss out on a feast of bear and burgers so early in the day!?!?

I have a client setting up cool photography courses in Jerusalem for tourists. I know of people who come to the Holy Land for the unique bird watching opportunities. Clearly there is more to this country than a few old religious buildings and some military sites.

My economy will slow to under 4% growth! Help?

29 September 2010
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Categories: Business, Israel

Yesterday, the Bank of Israel released its revised predictions for 2010 as well as for 2011. The economy will leap forward by only 3.8% next year, and that “lowish” estimate even allows for a downturn in orders from Europe and America.

How many finance ministers and bank chiefs in the OECD would settle for even half of that?

The Israeli economy is doing well. For 2010: –

  • Exports will jump up 11% (compared to a 10.2% dip in 2009)
  • Unemployment will drop to 6.3% (7.6%)
  • Personal consumption has soared by over 5% (1.7%)
  • Commercial gas (and maybe oil) supplies have been confirmed
  • OECD membership has begun to generate new sources of investment

There are still headaches for the planners. As the economy moves ahead and the housing market is bubbling, the central bank is using interest rates to curb the demand. But a higher cost of money will pull the shekel stronger, and thus weakening the profitability of exports. An awkward balancing act.

In parallel, the economy is dependent on export markets overseas. Again, while America, the UK and others are moving in the right direction, the progress is fragile. A potential Portuguese or Irish financial crisis could knock many off balance. And Israel will catch some of that fall out.

Avi Temkin in “Globes” newspaper wrote an interesting into to a piece on the economy.

Next week when Governor of the Bank of Israel Prof. Stanley Fischer travels to Washington D.C. for the annual meeting of the International Monetary Fund, he will be envied by many of the other central bank chiefs. ………. Fischer can mingle among the other central bank heads with an imaginary tag around his neck saying “2% interest rate and still rising.”

…and still in control.

Management, procrastination, self reflection

28 September 2010
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Categories: Business, Israel

Three separate and true incidents, yet one major lesson for how we run our private and professional lives.

1) My friend is retired from a life dedicated to academia. About a decade ago, he embarked on a private research project. His aim is to publish the work on the internet, where it will be available to all. Most chapters are complete. Some are already on the web. “But I am stuck. I cannot complete it,” he complained to me this week. This has been the situation for weeks, even months.

I quickly slipped in to my mentoring mode. “Did he have all the info” and other relevant questions. “Yes, yes”, he fobbed me off, dejectedly. And then rather impatiently, I prodded further. “What have you got lined up after this?”  The blank, negative look told it all; a painful question, which he was not ready to face. Busy all his life, the what next factor had been ignored for too long. Why?

2) Moshe Feiglin is a well-known local politician n Israel, dedicated to one particular issue. He is not popular in all corners. However, his family received amazing support, when their 16 year old son was rendered unconscious 3 months ago as a result of a car crash. Last week, 15 minutes before the onset of the holy Day of Atonement, the lad woke up.

The Feiglins had spent hours by their son’s bed, reflecting on why they had ended up in this situation. In an interview in Hebrew, Moshe referred to the fact that at the age of 48, he now appreciates how he has spent too much time away form the family in the name of supposedly important subjects. And when handling those issues, he had ignored the individual at the expense of longer term aims.

In effect, Moshe was saying that both his own private progress and his work was being hindered by his own self-mindedness. Why had it taken his son’s distress to allow him to face the truth?

3) As I was finishing my morning workout earlier, it suddenly occurred to me. “That lecturing project” – the one I had not pushed through to conclusion – I do not like it. I do not want to do it. Why am I wasting my time and that of others? Why can’t I be honest with myself?

How often have we all seen people procrastinate, at home or in the work place? Maybe a better word for procrastinate is “cover up”. If we will allow ourselves to be more “genuine”, how much could we benefit?

Management, sports industry, & Middle East peace talks

27 September 2010
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Categories: Business, Israel

All over the world, small – even medium sized – enterprises struggle to manage and forward themselves on minimal budgets and resources. Most are aware of the restrictions, while determined to seek the best future possible.

When it comes to sports management, somehow the laws of economics seem to adopt a new “elasticity”. And never was this more true than in Israel, September 2010. In today’s newspaper with a sports’ supplement of 11 pages, half were devoted to management fiascos, costing clubs – and the taxman – millions. For example: –

  • The owners of Hapoel Tel Aviv football club are fighting amongst themselves, whilst blaming the coach, who in turn has publicly lambasted his players. Yet tonight the team has an important challenge match against European opposition, worth multi bucks to one and all. Quelle surprise, but the training has been limited, as more important issues are tackled (sic!).
  • The leading Arab-owned football, Bnei Sachnin, has employed 5 coaches in 24 months, and wonders why nobody is tempted to take on the yet-again vacant position. The club is not bottom of the league, only because the one team below it has had points deducted.
  •  Many of my Israeli friends have rarely regarded the national Olympic Committee as one portraying patriotism and determination. It is seen as a group of “jobs for the boys”. You feel that those few successes have  been achieved despite the bureaucracy.

It has emerged that Yael Arad, a former medalist, is to stand for the position of Chairperson. She is being opposed by the vested interests of old. So, I suppose that if she were to lose, Israel’s Olympic standards will remain where they are. At least the “boys” will be happy.

  • The national swimming board is constantly refusing to pick Nimrod Shapira, one of the country’s realistic hopes for medals. Why? I don’t have the patience to follow the pathetic mismanagement of human relations. The Minister of Sport herself has been called in to sort out the children. Amazing!

Meanwhile, on the front page of the newspaper, I read how Prime Minister Netanyahu is concerned with trivial matters like peace negotiations and the safe future of the state. But if his cabinet cannot even supervise an Olympic committee or is prepared to interfere in the petty squabbles of swimmers, what chance……………..

New sources of funding – who to ask

26 September 2010
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Categories: Business

I recently wrote about how the role of venture capitalists is being displaced by large industrial groups, operating their own funds to support innovation.

Similarly trends are emerging in the non-profit sector, where donors are increasingly demanding more of a return for their buck. And one reason is that the donors are often based in the commercial community and not just old-fashioned do-gooders. Welcome Marc Zuckerberg!

Last week, I received  from Peter Kelley, Pegasus Financing, research from the UK re Angel Investments in 2009.

  •  
    • Average Mean Investment: £192,634
    • Number of businesses receiving funding: 233
    • Average number of investors: 2.5
    • Mean per investor per deal: £77,053
    • % of all business plans received presented to investors: 10%
    • Deals greater than £500K: 8%
    • First round deals: 32% of total

While substantial, these figures are not overwhelming. You feel that there is more money elsewhere. Back to those large prowlers, the big industrialists.

Fuad Abu Hamed, the IMF & the Palestinian economy

22 September 2010
3 Comments
Categories: Business, Israel, Palestinians

21C is an excellent Israeli website. It recently featured Fuad Abu Hamed, a rags-to-riches story of the Palestinian economy. His latest success in training Palestinian women has won him an award from the Hebrew University in Jerusalem. His bio is impressive.

But does one individual triumph should not allow to draw conclusions about the rest of the Palestinian economy?

The World Bank, the IMF and many other international institutions have spent much of the past decade producing streams of stats on the Palestinian economy. The latest report has come from the UN Conference on Trade and Development (UNCTAD), which estimates that the gross domestic product (GDP) rose by 6.8 per cent in 2009.

Encouraging, but the documented concluded that: –

….. the Palestinian economy is loosing some $800 million a year as the result of the Israeli closure and blockade policies, and that the 2008-2009 Gaza War drained a further $1.3 billion from the territory’s economy. 

….. the per capita Gross Domestic Product (GDP) was still 30 percent below what it was 10 years ago and at least 30 percent of the Palestinian workforce remained unemployed. Some 80,000 jobs are lost each year due to the Israeli closure and blockade policies, the report found.

“Basically the Palestinian economy has lost a third of its productive base that was there 10 years ago,”  ….

Sad. Gaza specifially, a historically fertile region with an educated population, suffers from high unemployment. But there is another side to the equation of logic.

Much of the economic growth has been registered in the West Bank, where a decrease in violence has enabled roadblocks to be removed. Nearly 2 years ago, a small but growing Israel Palestinian Chamber of Commerce was initiated through Ramallah. Tony Blair is actively encouraging tourism projects. Boutique shops in Ramallah, a cinema complex in Jenin, an emerging stock market – times are a changing.

So, the IMF et al are correct that Israeli restrictions impede Palestinian growth. that’s a given in any war scenario. But they conveniently forget that the policy is forced on Israel out of security concerns – the week of September 7th alone saw another 9 rockets fired at Israel. And as proven repeatedly, once there is a demonstration to show peace, Israel removes the impediments and in rolls the money.

As I said logical; simple and obvious. But there is also another reason why Palestinians find their economy lagging behind others.

I am not referring to the continuous corruption or the disappearing millions of foreign aid or the on-going funding of incitement against Israel – all resulting in the abuse of the generosity of Western taxpayers.

It is the internal lawlessness of Palestinian society, often exploited by a ruthless leadership, that appears to cause desperate harm to the average Palestinian’s financial status. Last week, the Ramallah-based Palestinian Independent Commission for Human Rights issued a damning press release of on the subject of repression. For example: –

….. on September 15, 2010 the (Palestinian) police shut down the Restaurant Hotel and Café of the Orient House ….. …

ICHR has monitored several incidents like these during the same period, as the General Investigation Force disrupted on 7/9/2010 a cultural event organized by the Cinema Forum in the gallery of Asamak Restaurant, ……

On 12/9/2010, a force of the General Investigation Unit disrupted a cultural eve organized by the Association of Community Colleges Graduates in the gallery of Al-Bieder. ….

On 5/9/2010, the Attorney General ordered a jockey club closed in the area of Shiekh Ajlin in Gaza city for (21) days claiming it doesn’t have the necessary licenses.

On 2/9/2010, the police shut down the Restaurant and Café Shop of “Sma Gaza” for three days because it let women smoke water pipe (“Nargile”).

I bet that Fuad Abu-Hamed does not love Israel. However, he has found a non-violent way to better the lives of his fellow Palestinians. His story is just one example of what can be done effectively, splicing aside the rhetoric of Hamas and the spin of exploitive NGOs.

It would seem that there is a Palestinian economy waiting to be noticed. Could it be that the interests of politicians are preventing it from shining through?

Ignore the skill of time management & it will cost you

21 September 2010
2 Comments
Categories: Business

Busy, they are. Working efficiently, they are not.

It is less than 2 weeks ago, since I wrote this about busy managers, who paddle in circles. And despite the short space of time, the same scenario has keept charging back at me from different clients.

Earlier this week, I was mapping out a course with a prospective client. Committed to their cause, the CEO complained that they did not know where to start. There was just so much to do.

I pointed out that the company had been established because they had become fed up doing the same things for others, who did not seem to appreciate them. Agreed.

So I asked what it was that would get them to appreciate the value of their own time, and thus encourage themselves to become organised? “Are you able to visualise what you are missing out in the meantime?” I received a pained look in response.

A few days earlier, a friend was discussing a new enterprise, which they had been trying to kick start for a long time. One of the main drawbacks had been the lack of time. All spare moments are invested current commercial practices, and I was subjected to a full explanation.

Fine, but this ignored how much they were looking forward to a change. The potential money-making opportunity was given second place to the on-going management of something which they did not necessarily enjoy……and again I eventually received another set of awkward looks.

Dan Kennedy has a mega track record in mentoring young companies. He has observed that:  –

I organize everything with predetermined start and end times; if someone has a phone appointment with me, they know in advance when it will end, not just when it will start–and the call does end as scheduled, even if in midsentence. I have trained and conditioned myself to be hypersensitive to time, and I train my clients to respect my hypersensitivity about it. Why?

Because last year’s bank balance and your satisfaction or dissatisfaction with it is more a reflection of how you invest your time than of anything else. In reality, time is one of the few assets the entrepreneur owns outright and has total control over.

Entrepreneurs only? No – all of us.

Is oil a friend or enemy of Israel?

19 September 2010
1 Comment
Categories: Business, Israel

Spot the contrast.

On one side of the page, Israel is reducing its dependence on oil. For example, Better Place is the world’s foremost company in the electrical car revolution. It has alrady secured commitments from over 55,000 owners, who are seeking to replace their oil guzzling vehicles.

And a ministerial committee is promoting a joint public and private sector initiative worth a billion dollars. The aim is to seek commercially viable oil alternatives. Impressive, at least on paper.

But in the other column, we find that vast chunks of Israel’s countryside are being cut up and replaced with oil wells. Yes, Israel is in the middle of a speculation boom in the search for black gold.

A typical story emerged at the end of last week, concerning one of the country’s leading tycoon’s, Yuri Ofer.

(His) new oil exploration venture hasn’t struck oil yet, but after numerous announcements and hullabaloo, it finally struck its first deal in the industry. TheMarker has learned that Ofer bought 10% of the Sarit drilling license for offshore Ashdod last night from Jacob Luxenburg’s Lapidoth Heletz.

The Israeli government has voiced its concern at the prospect of a shares bubble. There is to be a temporary halt in the granting of new gas and oil licenses. Prices of stocks in the sector  plunged on the news.

Who was effected by the fall? Market analysts believe that it is mainly speculators, who are involved in the trading. The “average person” is seen as reluctant to get his hands dirty. This feeling was confirmed, when one Hebrew newspaper reported that the local mafia was connected to some of the exploration companies.

If oil was to be discovered in commercial quantities, the country’s economy will quickly take on a different appearance. I fear that Dubai will have a strong rival in the opulence stakes. 

And now for irony number two. Yesterday, Israel recalled the anniversary of the 1973 Yom Kippur war, which led to a quadrupling of oil prices on the world market. The economic power of her enemies soared beyond belief. 

Nearly 4 decades later, Israel has yet to learn if she wants to copy her neighbours or find an alternative way to economic and social achievement.

Reflecting – on your business life: 3 pointers

17 September 2010
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Categories: Business, Israel

Religious leaders of 2 of the world’s leading faiths have been urging their followers to reflect. Muslims have just finished a month of fasting. Jews are coming to the end of the 10 days of Penitence, culminating in the Day of Atonement

Let’s be honest with ourselves. As you sit in your place of worship for hours on end, few managed to remain totally focused on personal issues. Eventually we switch over to other thoughts, such as “how the xxx am I going to get over THAT problem at work”.

Yup, in the midst of trying to say “sorry”, you are back to the old money game. So, in the spirit of the month, I wish to introduce you to three links I have found just recently, which help to prod you forward in your deliberations – personnal or otherwise.

First , let me start with something refreshing, tweeted by marketing guru Guy Kawasaki. We all try to brand ourselves. We all look to be different compared to others. Sometimes – maybe as in trying to change internally – the obvious is right in front of us and we don’t see it.

The link refers to the use of colours in creating a commercial position. Many spend so much time looking for cool slogans or fonts that the power of colour choice is forgotten. I love the purity of the anecdote about Facebook.

I once asked Mark Zuckerberg, the founder of Facebook why he chose blue for his site design… “I’m color blind, it’s the only color I can see.” …and now 500 Million people around the world stare at a mostly blue website for hours each week.

Next, as with introspection, a successful business looks to avoid mistakes.  The basic argument here is to know your numbers.

I have come across small firms in the past year that believe they are doing well, but have made little attempt to extrapolate future financial positions. Quelle surprise when they then run into cash flow difficulties, because the CEO has not “drilled down” into the figures until it is too late. Big ouch!

And finally, I wish to direct you to an illuminating interview with Eric Ryan. (Registration may be required). He saw change – also known as innovation – as a way to move forward. The positive results were reflcted in better internal leadership and sales growth.

So if he can learn to do it………..Something to consider over the next year.

Afraid of cold calling? Some painful truths

14 September 2010
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Categories: Business

CEO or junior clerk – sooner or later we all have to make phone calls to people that we do not know and have no idea how they will react.

This is cold calling – some of us can do it naturally and some of us freeze at the very thought. In fact, worse than freeze. We find every irrelevant excuse why not to pick up the phone and hold a one minute conversation. A simple everyday act threatens to become a trauma.

Surf the web, and there is no shortage of tips or advice on what to say on the phone. That’s fine, once you have picked up the phone. But what happens when you do not even get that far? What happens when you find yourself doing the ironing or soduko before phoning up for an appointment or to make that clinch sale?

It’s time to ask a few simple question of yourself.

First, just how important is that call? You are looking for a job. You want to start a selling process. You need info for a project. Whatever, but you know you need to speak to Mr Anonymous. All of this has financial value to you. So by not making the call, you are effectively saying:

My fears and concerns are more important to me than receiving money in the bank.

Can you allow that situation to continue?

Now, ask yourself why you should not call. When trying to understand my clients , people have often explained thier actions in the following ways:

  • because I do not know what to say
  • because I do not know what the other person will ask
  • because I do not have enough info
  • because they may never talk to me again
  • because I may get it wrong

Well, each of those could be true. But, if you don’t make the call, you will never move forward. And you will remain out of pocket, financially!

The question is not what is stopping you making the call, but who?

Once you have worked that out, it will be time to open those links to tips on cold calling.

Israel exporting cars to Iraq?

13 September 2010
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Categories: Business, Israel

The Middle East throws up some pretty cuckoo stories. But when I read this morning that Israel is trying to export cars to Iraq, I knew that I was in immediate need of an extra coffee before proceeding.

I have since cross referenced the facts on the internet, and have found an Arab source confirming the item. 

The Israeli Ministry of Transportation has approved a new plan to export tens of thousands of used cars from Israel to Jordan and Iraq in order to reduce the size of the used car market in the country. Sources within the Israeli Ministry of Transportation conveyed on Sunday the goal is to sell more than 50,000 used car in Jordan and Iraq, which constitutes some 10 percent of the Israeli used car market.

Apparently, one of the main beneficiaries of the plan will be car hire companies, who are renowned for having problems selling off old cars. Lobbying groups at work behind the scenes?

Maybe, but there is a great deal of irony in the potential of this commercial act. Israel selling cars to the Arabs. Who would have thought it?

There again, 2010 will be noted for the year when Israel seems to have discovered significant quantities of oil. The Middle East has turned on its head.

Next you might get Palestinians and Israelis learning not to be afraid of each other. Is that one step too far to comprehend?

How a CEO is inspired to take action

11 September 2010
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Categories: Business, Israel

How many of us know senior execs, small or large companies, who just will not act to prevent a looming problem? You are left frustrated – the issue is right in front of them and they are not motivated to do anything.

With some irony, the same theme has been raised in Mosques and Synagogues all over the world in the past few days. The fasting period of Ramadan has come to an end. Jews are honouring the 10 Days of Penitence, which culminates in the Day of Atonement. Rabbis and Imams are calling on their flocks to “wake up”.

Jews are accustomed to hearing the ram’s horn sound 101 times during their morning prayers at this time. Its symbolic purpose is to “blast” the believer into deep introspection. However, just hearing the noise is not enough. The person needs to drive on towards repentance.

So what encourages this need to seek forgiveness and strive for better deeds? Or, in parallel, what encourages a CEO to move away from their bad ways? Simply shouting is not going to do it. Nor is just another prayer or two.

What will make the difference?

Well, I offer you two completely estranged sources, who have ended up offering the same answers. First, I had the honour of listening to 3 rabbis over the past 72 hours. In their own way, each stressed the need for an internal – call it , spiritual – response. people have to examine themselves and ask what they are really want to achieve as individuals.

Fair enough. Now skip over to one of my favourite TV programmes; “The Biggest Loser” on NBC. Two top personal trainers cope with 20 grossly overweight Americans over several months. These people all end up losing some fat.

Significantly, the truly successful ones are often  those who have learnt to ask “what are they really trying to achieve in life”. To put it differently, they have dug deep and honestly to find out what is really holding themselves back. Once over that hurdle and losing the kilos sudenly becomes easier.

So, reverting back to my opening question, of those CEOs whom you doubt, perhaps you should ask how many have the ability to be truthful with themselves?

Growing club of busy managers, always paddling in circles

8 September 2010
1 Comment
Categories: Business, Israel

Heard this before? “I need to meet you, but I am too busy to confirm”. 

Or: “I’ve had a frantic week, but I am not too sure how effective it’s been”. 

How about: “Sorry, I’m late. I was just finishing off my blog – it’s sooo interesting”. 

I am sure you get the drift. How many of us are busy managers, but with no time for what we want or need to do? A few years ago, if found myself admitting that I invariably left for meetings late. Looking for an explanation, I realised that I often tried to cram in one last task before setting out. That way, if I was late, I could explain to others how busy I was – ie, I assumed they would think that I am an important person. 

Was I that convincing to everyone? Did I not miss out on some of the networking prior to the meeting? Did I make a full contribution to the discussion? All those points were non-issues in my mind, back then. 

Time management is often one of those subjects that we believe that we are good at. Quite often, the truth can be otherwise. The number of people I meet who tell me that they are too busy to meet. Why? Because they have to take a kid to the doctor, cannot be sure when a previous meeting will end, are waiting to hear back from others, or need to take the cat for a walk. 

But they are busy. Doing what? Well, a lot of something, with little control nor direction.  

Let’s recall the picture of Israel’s Prime Minister, Bibi Netanyahu, with his kids of holiday a few weeks back. Smiling away, sitting on the back of a kayak, his paddle stroking through the water. Idyllic! Except that all the others were paddling in a different direction! 

Ignoring the obvious satire of Israeli governmental policy going around in circles etc, this is what happens to CEOs. Busy, they are. Working efficiently, they are not. And the result can be readily detected in weak cash flows or awkward meetings with bank managers. 

Michael McLaughlin, writing in Management Consulting News has summed up this pattern  eloquently: 

Often, though, it’s not just that we need more time to address the items on our to-do lists. What we really need is the chance to think, plan the future, and come up with new ideas for our businesses. ….. It takes mental bandwidth so you can focus and think straight. 

To do your best thinking, first and foremost, you’ve got to clear your mind. Of course, you can find tons of advice on quieting your mind through disciplines like yoga or meditation. But here’s a simpler way to get started–and you don’t have to know how to chant. 

If you want to create more mental bandwidth, wherever possible, get rid of the clutter in your life. 

Israel’s economy – let’s take stock for a minute

7 September 2010
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Categories: Business, Israel

It’s mid September. In the Jewish calendar, the New Year begins on Wednesday night. A neat  time to look at where the local economy is going.

Well, the amazing news is that growth for 2010 will be clocked in at around 4.0%. The latest prediction from the gov stats office predicts 4.1%, which is above the Bank of Israel’s forecast of 3.7%.

To put that in to perspective, 2009 did see a small increase of 0.8%. And in 2008, the last year before meltdown, a 4.2% growth level was registered.

Individually, Israelis are expected to be 2.6% better off, as measured by spending habits. In parallel, unemployment is down to around 6.0% and still falling.

Much of the improved growth has been achieved via the success of higher exports – predicted at 13.1%. Naturally, imports too have moved ahead, as companies have replenished stocks since the recession.

Tourism is up around 23%, almost reaching for the first time the tide mark of 3 million guests. The stock exchange seems to be escaping from some summer blues and is edging up again – a net raise in the Jewish year of over 20%.

What next? Will European blues hold back the rise in exports? Can the Bank of Israel ensure a competitive local currency? Will reforms demanded by the OECD in health, education, money laundering, etc restrain change or kick start it in to new directions? Will Israel end up as a net exporter of energy – both gas and oil – changing the geopolitical structure of the region?

The next year – using the Jewish measure or otherwise – looks to be another hot one, commercially.

10 tips to deal with venture capitalists, told by a venture capitalist

6 September 2010
2 Comments
Categories: Business, Israel, Jerusalem

The Jerusalem Business Networking Forum is a unique meeting place, allowing pushers and pullers to find each other. Running monthly events for the past 3 years, it has provided a launch pad for many future contracts.

So when Ted Nehmad, the Director of investment group “C Capital” was scheduled to give a talk, you can understand why there was a quality attendance. Now, Ted sees too-many-to-count requests for seed money or investment funding every month. His list of successes is wide ranging.

Ted’s presentation detailed 10 “must dos” for those seeking to raise capital, and several in the audience were taking copious notes.

  1. Just go for it. A good idea is not enough for success. You need to get out there.
  2. Do not rely on a one-person show, but a team.
  3. Define a justifiable business model, based on real market values and focused on final users. (Exit is not a model).
  4. Create a hook – a cool elevator pitch.Essential! Your personality can make the difference.
  5. If you work with angels, remember they can be devils. Sell your company, but not your soul.
  6. Preserve your funds.
  7. Learn to dance with investors. They are always one step faster, looking for an exit, before you have thought about it.
  8. As the grip of angels and VCs may be diminishing, multinationals are setting up incubators; HP and Cisco are 2 examples, with Amdocs in Israel.
  9. Another alternative is to “go east”. This February, after nearly a decade of probing China, Israel’s Pegasus Technologies was purchased by Yifang for US$60m.
  10. Don’t forget – be determined. Your success will not come without some pain.

Just words? Not true in reality? I have recently finished mentoring a client, where we spent much time working on their pitch. They are now busy making sales.

Too simple? Look at the headlines in today’s Israeli financial press.

German electronics giant Siemens is considering investing considerable capital in Israel, according to recent meetings in Germany between representatives of the Federation of Israeli Economic Organizations and Siemens. The meetings were held to find ways of increasing cooperation in R&D and investment in Israel.

Not a one-off statement:

Intel Corporation (Nasdaq: INTC) has acquired the assets of Israeli PC virtualization start-up Neocleus Inc. for a few hundred thousand dollars. The company’s 15-20 employees will join Intel Israel’s R&D center.

Why do we ignore prospective customers?

3 September 2010
No comments
Categories: Business

Unbelievable! Two clients of mine have been ignoring easy-to-reach new clients. Meanwhile, they are stressed out over poor cash flow and the fact that they are very busy with other projects.

Absurd, but scratch the surface of many companies, large and small, and it seems to be a common issue. People talk about preventing churn of client base through CRM software or using social media platforms to reach out to new guys.

However, once it comes to some basics of picking up the phone and making a sales pitch to somebody round the corner or that you know, everything goes kapput.

It’s only a few days ago that I wrote about the value of “sales coaches” . Let me tell of one CEO, who has been prepared to listen to ours truly.

They explained to me very determindly that there was no point in following up samples that had been sent out, in some cases months previously. Why? The small staff was too involved in preparing new proposals for others. Anyway, the prospects would have responded by now if they were serious.

“Go on. Give it a try. Let me call, ” I urged. And thus it was agreed. As for the results of an hour of phoning.

  • Prospect No 1: Their comments directed my CEO to a glitch in the production process. This was ironed out. It is expected that after tests on a new sample batch, a first order can be discussed.
  • Prospect No 2: Not interested but they passed on 2 solid leads, who will be contacted soon.
  • Prospect No 3: They intend to complete tests shortly and appreciated the concern of the call.
  • Prospect No 4: Their company is about to embark on a new project, where the material will be applicable. Now that my CEO has shown renewed interest, they will be considered as a supplier.

4 golden possibilities / probabilities that had been written off 7 days previously are back on the radar screen. And the added bonus of an improved production base for better sales flow.

This week, I received a blog on “how to find your first customer“. It is worth reading. And I would add one more suggestion; sometimes the low hanging juicy fruits are right in front of you – you just have to open your eyes and act to bring them home.

Global vote of confidence in Israeli economy

30 August 2010
No comments
Categories: Business, Israel

The international financial media is worrying about double-dip recession. In Israel, there is continuing concern that the high tech revolution is faltering; has there been a failure to convert an innovation prowess into global economic powerhouses?

For the meantime, the bland economic stats reveal that Israel’s economy is managing to rise above the “woe-is-me” attitude in Europe and in the USA. For the first half of 2010, growth was registered at over 4%, back to the heights of 2007. And much of this gain as prompted by a significant leap in high tech exports.

I have written several times that Israel’s economy is at the beginning of a structural change, which will reap many long term benefits; specifically, accession to full membership of the OECD and acceptance at the top level of the MSCI stocks index. There are now proven off-shore commercial reserves of natural gas, and it is becoming likelier that “black gold” is also out there – which together they will cause a major positive shift in the country’s finances.

You know that these are not meaningless words when you learn that international banks are starting to move into Israel. Until now, only HSBC and 3 other overseas groups have been offering commercial services. About 10 others have rep offices, mainly in Tel Aviv.

It has now been reported that banks from at least Germany, Canada, Holland, France, Italy and the USA have been conducting discussions with the Bank of Israel in order to offer their  full services in the Holy Land. And they would not be doing that just to win over a few household clients.

Any connection: Israel’s leading banks, Hapoalim and Leumi, are reporting strong profits for 2010.

Who needs a sales consultant, and when?

28 August 2010
No comments
Categories: Business

You send out a price proposal. Surely, it will be followed up. To my amazement, in the past 2 months, I have seen two companies totally fluff it and see leads go a begging. Net result? Well, very little actually –  the revenue columns remained flat.

It may be difficult to accept, but sometimes the obvious is only evident “after the fact”.

How many obvious bloopers can you recall in sales? I was told of one person who was advised to start an international marketing campaign…. without a website. Did you hear of the firm, whose contact details on the website referred back to the holding company, located in another country? And how about the cunning exec, who appointed a great strategist as head of sales, but the person had no idea how to sign off on any deals?

Many CEOs are reluctant to admit it, but they are not that good at selling. After all, surely they are providing a product or service that people just want to lap up. Maybe, but life does not work that way.

You have to brand, plan, price, convince and close correctly. Few people possess all those skills to a sufficient degree. And just because you are a CEO does not guarantee that you are one of this privileged group.

A sales coach or consultant is essential for most businesses, large or small. If you choose wisely, the ROI should be substantial and quick.

But here comes the second whammy. Once the consultant has delivered their verdict, you then have to monitor the follow up. Running, maintaining and supervising a modern sales force can be extremely demanding. Without a system in place, you could end up wasting months of planning and pipeline work.

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