Teva in Hebrew means nature, like wild rolling fields. It is also the name of one of Israel’s largest companies, quoted on NASDAQ.

Teva has grown in 3 decades from an insignificant local manufacturer to become the world’s largest generic drug producer, with factories on 3 continents. Only this week, it completed the purchase of Ratiopharm, Germany, for nearly US$5.0 billion, beating Pfizer to the finishing line.

Barden Capital Management, Texas, is typical of many such firms. It has consistently held a long position in Teva. Assessing the management, current and future market positioning, price ratios etc, they believe that Teva remains a good hold for some years to come.

Teva represents much of Israel’s commerce in that it is a company that has grown despite the existential problems, which the country continues to face. This week, the Tel Aviv Stock Exchange climbed to within 2% of its record high before the credit crunch arrived. Few other bourses can claim that achievement.

You will be unlikely to read about these successes in your average newspaper. Most reports from Israel  this week focus on the diplomatic spat with America; Israel’s poor management of internal decision-making by a minor committee of civil servants in the housing ministry and Washington’s childish response.

In fact, Washington and its European friends were merely content in blasting Prime Minister Netanyahu. They contrived to ignore how Palestinian President Mahmoud Abbas led a ceremony Ramallah to rename the main public square in honor of Dalal Mughrabi, the woman who in 1978 helped carry out the deadliest single terrorist attack in Israel’s history. All this, the day after the American Vice President had met with Abbas.

And neither did the Western allies condemn calls from Hamas and from the Palestinian Authority to react with violence against a religious Jewish ceremony in Jerusalem’s Old City.

Teva represents Israel’s natural response to these hypocrisies. It shows how the country is prepared to just get on with it. All Israelis want to do is to live their lives in peace with the world, creating a better global community.

How many of us have come across good, if not brilliant, people. But ask them to make a decision, and you know that you have time to read “War and Peace”, twice, before a definitive answer comes back.

Why? What holds them back? In my student days, a flatmate at the time was notorious for gathering bundles of information, but frequently delayed carrying out final steps. I have several clients today with excellent businesses, but they accept that they waste large amounts of time on relatively insignificant subjects. How many of us have observed senior managers efficiently receive company-wide reports, but then are incapable of following up with operative instructions.

Fear of making a wrong decision? Scared of losing power once a decision is made? Down right inability? There are several factors that come in to play.

Looking back at myself, I am able to admit that I would make decisions based on wrong perceptives. I can track how throughout my life how I would formulate an action, based on what people would think of me. I did not refer to what was good for me.

Dan Ariely presents the situation in terms of preferences. Many of us do not create for ourselves correct options. We tend to accept how others want to condition us, Unwittingly, we go along with the idea, and the result is thus often less than positive.

Matt Weinstein is one of Bernie Madoff’s many victims. What helped Matt adjust to his severe finacial loss was a small yet illuminating piece of stoicism. Recalling the Greek philosopher of 2,000 years, Epictetus, Matt observed: “People are not disturbed by things, but the view they take of them”.

We all get bogged down. We allow others to confuse our thought processes. The issue is whether you are strong enough to overcome and remove irrelevant externalities. We need to remember that we can always choose how to respond to situations. How we decide is up to us. Simple…isn’t it?

February 2010 saw a spending spree in Israel. Purchases of washing machines, motor bikes, fridges and cars all rose in the tens of percentage points.

Unemployment is on the way down. Clearly, there is more money around.

Economists always worry about a consumer led boom. Fortunately, there are other encouraging signs in parallel to these spending trends. For example, state revenue from taxation was up over 7% in January in real terms.

As for inflation, the overall pattern is seen as downwards. And even better news is that the current governor of the Bank of Israel, Stanley Fisher, is expected to receive and accept an offer to remain for a second 5-year term.

The one blip seems to be an externality, out of Israel’s control. As the Bank of Israel stated its latest survey, “negative developments in some European countries with high deficit/gross domestic product and debt/GDP ratios” posed risks to positive global growth trends.

It’s International Women’s Day, and the stats come rolling out. In Israel, we read that only 12.9% of CEOs in leading companies are women, up from 8.4% just 2 years ago. In the army, nearly half of the lower officer ranks are filled by women, roughly commensurate to the gender proportion. By the level of Brigadier-General, only 3% are women.

Good? Bad? Getting better? Better compared to others? However you look at it, there is still much to do. And that comes from a country, which was one of the first to have a female Prime Minister. And but for a few thousand votes, a second lady, Tzipi Livni, was almost installed last year.

Clearly, society has much more to learn. There have been 3 major rape case in as many months involving females still at school. The most recent incident concerned students from a well-to-do neighbourhood. What has not been established is if the number of incidents has increased in recent years or if it is case that more are reaching the attention of the police.

By way of comparison, a women’s rights group in Gaza has documented how females are frequently denied their inheritance. The Palestinian Independent Commission for Human Rights has consistently reported on the abuses of female rights, rapes that have gone without investigation, family honour killings, and more.

An interesting way forward came to light last month. There was a competition for the most sexist Israeli adverts of 2009. The implication was that the ads were of poor taste. If that message gets through to more and more people, then Israel will continue to break down the social gaps between the two genders.

Last week, I wrote about the advantages of providing a quality proposition. Be it on behalf of your client or an immediate superior, we are constantly being asked to provide solutions / products / services that have a value and a significance. We cannot rest on past successes.

A few days later, I attended the fourth annual conference of “Techshoret“, Israel’s premier conference for technical writers and communicators. On the face of it, this could be just another meet-up for a professional group.

What these people point out to whomever will listen is that they write the PR material for sales teams. They write the software manuals for tech, concocted by goofy engineers. They are asked to do the impossible – convert convoluted descriptions into a text that can be understood by dummies.

And in a country like Israel, where the sales of high tech products and services drive the economy, that is important work. Except…..

Except that increasingly, technical writers are perceived as having an admin value. They do not create nor sell. Therefore, they do not create revenue, correct? Couple that with the fact that there is increasing competition from India and from China, and the local industry could be in for some downsizing.

There are ways around this. One solution is pioneering new platforms. For example, STE was discussed at the conference.

A more interesting approach was given to me by one of the participants. For him, technical writing is not just finding a method to explain something complicated. He is directly involved with part of the sales team. In parallel, he is associated with the final presentation of his writing, the printing and its distribution.

In other words, his company allows him to be more integrated in the whole sales cycle. His skills and his knowledge combined cannot be outsourced too readily.

There are lessons here for others who find their jobs under threat. There are implications for those who feel that their own compact services are being ignored by others. Find ways to give more, …..and you will also probably find out how much more you enjoy your work.

Speak to a sales person – in America or China, in hightec or spare parts – they all offer a “quality product”. Oh yes? Well, so did I, didn’t I? And then I was faced by a situation where I had to ask what that really meant.

The truth hurt. And now…..

This week, a elderly friend of the family passed away. His brother had died about 3 years ago. At that funeral, he was eulogized by one of his sons, who spoke about his father always delivering a quality service to his customers. I looked at the wonderful but grieving family, and I realised that this small statement had also extended to his home life, to his works of charity, and to many other spheres.

Surrounded by an open grave and many mourners, I found myself feeling contented momentarily. I too give my customers a good deal. Just like the deceased. Just like the man, who all admired. And then, “it” hit me. I was nowhere near his league.

I will not put on record what my faults were. But it ain’t fun asking yourself painful questions. Would I want to receive my own service? Can I honestly justify the payment structure? Have I truly listened to what the customer needs or is it more a case of shutting them up? And there were many more like that.

Some issues I got right. Some needed quick mega changes.

I will write that what I offer now to my customers are clear deliverables, which can be measured and tracked. if teh potential client does not make sense, I walk away. Sales have progressed positively since then.

As a word of personal comfort, I realised that I was not alone. No shortage of examples to quote. In Israel, the phone service, Bezeq, had a monopoly on most services. You grew up knowing that you had to accept what every you got. Today, competition on internet and other channels is rife. Bezeq advertises heavily, but you feel that they are still trying to erase a stigma established over a generation ago. I use them as litle as possible.

How about one of Israel’s medical funds, Clalit. They have just outsourced the supervision of all of their suppliers. And the result is that suppliers now have to pay the new company for joining the supply chain, as well as “invest” in the new computing system! Talk about a scam, which will eventually reflect back on the fund.

Or about Israel’s solitary toll road. They ask you to take out a subscription, which will save money. Great. Most of that saving is then lost as you pay for a package to be sent in the post. In a few years time, another road will be built, and then they will start to advertise like Bezeq today.

Alternatively, Bezeq, Clalit and others around the world can offer sincerity and quality. They can build up client bases that will not abandon them readily. Quality and reliability produce long-term and repeat customers.

Israel’s biotech sector has long been regarded as a world leader. Teva and generic drugs, Given Imaging and miniature cameras, nanotech emerging from Israeli universities – are all signs of great things still to come.

Tuesday saw the launch of a Biomed or health care index on the Israeli stock exchange. Initially valued at over US$2 billion, and worth 2% more after the first day’s trading, the index is comprised of over 40 companies. Three firms, Compugen, GI and Kamada are responsible for almost 30% of the value.

Also this week, two of Israel’s biotech giants have announced a merger. Clal Biotechnology Industries Ltd. (TASE: CBI) today announced that it will acquire Biomedical Investments (1997) Ltd. for NIS 84 million in cash, shares and warrants.” The rights’ issue for Intec Pharma, a drug delivery company, was oversubscribed. And yet another firm, InsuLine, is considering a launch on the stock exchange.  

All very encouraging. What I look forward to is hearing more about companies emerging from the country’s successful incubators. That news is in short supply at the moment.

IKEA is about to open a second store in Israel, building on the phenomenal sales in the original shop. Ben & Jerry’s will invest over US$2 million in an Israeli productions facility. H&M is following GAP, by opening up in Israel.

Israeli consumers are reflecting other aspects of the economy. For many sectors, the worst of the recession is behind them.

Positive stats abound. Unemployment is now down to 7.4%. In the last quarter of 2009, commercial exports rose by 8.9% on an annual basis. For the 3 months November 2009 – January 2010, sales at chain stores climbed 7.8%, again on an annual basis. And the stock market continues to climb.

As ever, caution must be urged. Israel is dependent on overseas economies, such as the UK, which still faces an uncertain financial future. Anecdotal evidence suggest that there is a slowdown in the activity of start ups, specifically their ability to conduct further r&d. And the shekel remains uncomfortably strong against the dollar, hurting the profitably of exports.

Israel’s economic leaders still have their work cut out for them.

I continued to insist and the entrepreneur finally gave in. “All right. I will write a proper business plan.”  But then he really became annoyed, when I would not commit to forward it to an investor.

The reason? Because few inventors know how to present properly. And even less understand what goes into a really good business proposal. Until my insistence had got the better of him, my contact had felt that 4 badly photocopied pages with some pictures and technical explanations (of a great idea) would suffice. No!

Let’s quickly examine this point . Inventors know how to create – it is wonderful talent that I can only admire. From my perspective, it looks like a simple game for them. Similarly, good business plans are also a skill – the difference is that many feel that all it takes is the ability to sit down and churn out 20 pages with a few financial numbers.

No, again! Bluntly, a business plan is all about telling a prospective investor in a concise and simple (and truthful) manner why they are going to make a lot of manner very quickly. The punchline is in the the first 2 – 3 sentences.

By definition, that puts your average entrepreneur at a natural disadvantage. There is little room (or patience) for their rambling explanations about their wonderful invention – be it software, wires feeding into a medical device or a mobile app. ROI rules the waves, not clever but bewildering explanations, which merely cater to the founder’s ego.

An IIB colleague, Siu Ling Hui, has summed this up very eloquently in her latest newsletter. Her four page description of what is needed in a business plan is one of the clearest I have read. And she gently inserts a very telling piece of advice.

It’s all about striking a fair deal for both the business entrepreneurs and the business investors….Would you be prepared to invest in the business under the proposed terms of your offer?

I probably meet about 2-3 great new ideas every month. Very few sound genuinely convinced by their own commercial models. Yet, most are deluded by a belief that an investor will be won over by the wonders of the tech. For the third time, “no”!

Would you like your child to work for your company?

Thus asked Stefan Stern this week. If the answer is yes, great. If not, why not? Ouch – too obvious and far too close to the bone for many.

Portsmouth Football Club is struggling top tier team in England. Nice players and a colourful manager have not prevented them ending up rock bottom of the Premier League and bankrupt. Accountant Nick O’Reilly of Vantis, who recently examined the club’s books, declared in a BBC interview:

I came away not knowing who controlled what. …(Their business methods had gone) against all good governance.

So how can the owners of Portsmouth FC – and any other struggling enterprise – get ahead of the ball game? Is there a “secret formula”?

A new article in the Harvard Business Review fittingly asks “how can managers assess whether their organizations are fit enough for the new business environment? How can they identify the obstacles preventing their organizations from executing effectively, and how can they overcome those barriers?”

The article cites 7 factors, centred on the theme of agility – is an enterprise vital enough to spot its own mistakes or see the gaps left by others, and then respond quickly?

In the case of Portsmouth, which has seen 4 owners and 2 professional managers within a few months, too much talk has centred on gossip rather than strategy. Many of us can name companies where the effort to create buzzwords has been more intense than the implementation of actual policies.

And you have to ask – be it Portsmouth or elsewhere: Would these top teams encourage their offspring to come to work with them?

Go to Gaza. Visit a village in the West Bank. You will find people living in poverty, especially compared to most OECD population centres.

Then ask yourself where the money has gone and you will start to find some unusual answers.

Let’s start with Israel and Egypt’s blockade of Gaza. Whatever the sense of this policy, the fact is that Gaza is not short of food or commodities. First, most commentators accept that there over 500 smuggling tunnels available, of which around 100 are in operation at any one time.

To illustrate the effect of these supply routes, according to an article in Hebrew by Gideon Eshet in Yediot Ahronot, the price of cement is lower now than before the blockade. A liter of petrol costs approx 2nis (6.4nis or US$1.70 in Israel), with one shekel going to Hamas “admin costs”.

That the Palestinian Authority (PA) and Hamas leadership are awash with cash is not in doubt. This blog has reported on occasions of the corruption endemic amongst much of the respective leaderships. In a legal settlement last year in America, the PA agreed to pay up to US$200 million in damages. Where did the money come from?

In Gaza, Hamas resorts to cash smuggling as opposed to the printing of money. On the West Bank, controlled by the PA, the World Bank (through Western taxpayers) has been paying for water and electricity bills.

And what about the lack of electricity in Gaza? It seems that the power was paid for by the EU, which was supposed to pay the money to Hamas. In addition, Gaza residents are paying to Hamas. But Hamas does not always pay the supplier (which is mainly….Israel). Thus, every so often Israel reduces the supply. And now even the EU is demanding greater accountability from Hamas, which in turn shouts “oi gevalt” insults against European and Israeli hate crimes. Sic!

All this goes to explain the economic contradiction that Palestinians have relatively high expenditure levels but low GDP.

It is time to move past politically correst slogans. Time for greater transparency. Time for Palestinian leaders to start looking after the financial pockets of their own people.

Two case scenarios. Yesterday, I heard that a close friend was about to hand in his notice after over 10 years in a lab of a biotech company. Along with 2 colleagues, they had met all their targets and sacrificed to help the Israeli company through the recession. They were left to doubt is they were worthy members of staff, and were encouraged to go home every day …late. In the space of 8 weeks, the firm was losing 20 years of experience in a core department.

With some irony not far from there, a daughter company of a multinational is plodding along. In the words of one senior manager, they were about to spend the next set of salary negotiations beaming at their staff, thanking them for their continuing achievements and giving them a pay rise that barely matched inflation. Bonuses along with initiative are governed by an anonymous head office overseas .

The local board cares, but guess what the staff is thinking? There comes a time, when all the smiles and camaraderie in the world just does not do it.

Two questions link the stories:

  1. Is anybody with true authority prepared to take responsibility for the HR consequences of their actions?
  2. If not, they must realise that the remaining employees will be less than inspired, which will have a knock on effect in performance. Is there a back up plan to motivate them?

I recently read 3 articles on this very theme.

“Motivation is now a big issue to ensure that the staff capitalise on opportunities as the economy limps out of recession,” writes Jonatan Moules in the Financial Times. He recognises that the pay issues can be overcome, when the right internal company environment is created.

The Mercer Engagement Scale, which measures what motivates employees across a range of companies, ranks bonuses and pay rises in eighth and ninth places, a long way behind having an interesting job, being recognised for contributions made, and having good relationships with colleagues.

“A surprising thing about what motivates us” is a new book by Daniel Pink. Using examples from Google and other successful enterprises, the author goes for the jugular.

The dominant view is that “in the end, human beings aren’t much different from horses: the way to get us moving in the right direction is by dangling a crunchier carrot or wielding a sharper stick”. Pink draws attention to the wealth of research that suggests that, as far as human motivation is concerned, something far more interesting and potentially more powerful takes place

So again, no overt need for financial reward. Just let the worker get on with a purposeful task in their own way.

Dr Robert Brooks has been quoted before on this blog. His latest writing on motivation happens to quote Daniel Pink. Brooks cites the work of Deci and Ryan.

This is a really big thing in management. When people aren’t producing, companies typically resort to rewards or punishment. What they haven’t done is the hard work of diagnosing what the problem is. You’re trying to run over the problem with a carrot or a stick.

As Brooks notes, the question remains what are the conditions or techniques to create a motivational environment. I suggest that he sends he thoughts directly to a large number of CEOs around the world.

Very early on in economics 101, you are taught that pumping money into investment projects usually leads to a growth economy. Simple enough.

New stats from the OECD revea how Israel spends nearly 5% of its GDP on r&d. To put that in perspective. If you compare that level to the rest of the OECD group, which Israel is about to join, then Israel is leader of the pack with nearly twice the OECD average. 

It is not just this money create jobs etc. Down stream, wealth is generated through higher export sales or improved efficiency levels in the local economy.

No surprise then that Israel is one of the countries emerging strongly from the global recession of the past year. In fact, economic indicators for November and December 2009 have just been revised upwards.

As a word of caution, first investments in Israeli companies dropped around 50% in 2009. One reason for this was clearly a knock-on effect from the recession. A second factor is a suspected shift towards revenue generating companies.

Did Israel bump off a Hamas arms runner, whose purchases were destined for the population centres of Tel Aviv and Jerusalem? When you cut away all the spin, there ain’t much real proof.

And meanwhile, back in the Holy Land, there is so much positive economic and commercial news that the world’s media seemingly goes to great length to report….in silence.

Did you hear that Israel and Egypt are seriously mulling over a joint venture to produce solar energy? How about Mumbai’s drive to form a free-trade agreement with Jerusalem? With Israel’s growth indicators continuing to move in the right direction, the governor of the Bank of Israel has been exuding cautious optimism.

On a micro level, there are multiple signs that Israel’s innovation revolution is has not stopped because of the recession. I have scheduled a visit to Israel for a UK firm in 2 weeks time; a joint venture based on a hardware-software application. I have spoken to participants from the 2nd Eilot conference on Cleantech, who related that every table seemed to be occupied with partners signing LOIs.

Move over to Barcelona, where 70+ Israeli companies are creating a very audible presence amongst the giants of Nokia et al.

Buongiorno (Italy, MTA STAR:BNG), the world’s leader in mobile entertainment, has signed a cooperation agreement with the IMA – Israel’s Mobile & Communications Association; a non-profit organization representing over 100 Israeli member companies, …. in which the IMA will give Buongiorno fast access to Israeli technological innovation in the mobile sphere, while Buongiorno will introduce IMA’s portfolio companies to a potential +130 telecom operators it currently serves…

And it’s not just high tech that is doing Israel proud. Even Israel’s chocolate industry, once known as the epitome of poor and cheap ingredients, is finding its way to the heart of exclusive global population groups.

Look beyond the duplicitous claims emerging  from the Dubai story, and you find a friendly and healthy economy, looking to share its goodies with the rest of the world.

Conventional leadership is grounded in the notion that true leadership is felt when we exert our personal will to reach a clear vision and inspire others to follow us.  Examples of this style include command and control and directive action.

Thus writes the executive coaching team, Jennifer Joyce and Patty Beach, the co-founders of LeadershipSmarts. And they continue:

However, there is a shadow side to conventional leadership. That approach is at the heart of the Emperor With No Clothes myth. When conventional leaders go too far, they can be too autocratic, egotistical in the extreme, insular in their decision-making, and blind to their faults and mistakes. Their staffs are told to shut up and row – and they do, to a certain extent.  Unfortunately, the conventional approach leaves one person struggling to know and control everything in the organization and the rest of the staff resentful that they have no real influence.

This week, I met a very capable entrepreneur. Let’s call him David. Now David has invented a product, and with standards that engineers had told him were impossible to achieve. A typical Israeli, he took that comment as an incentive, not a put down.

2 years later and US$150,000 lighter, David has presold his first trial order. And it’s a good looking item with unique selling points. It was at this stage that I was called in for a chat on business dev.

The first 40 minutes were spent discussing how to find specific retail outlets in Europe. Could I help? Surely, I reply. And then the contradictions set in.

First, when I suggested what practical, hands-on assistance I could offer, David told me that he did not want a consultant. And that attitude did not alter, when I explained how I, personally and thorugh my efforts, would put him in touch with retail decision makers.

Anyway, and point number 2, for him the immediate issue was an investment partner and not sales. (He had not mentioned this subject previously, but it was not surprise.)

And why was it not a surprise? Because David had informed me that he could not finance a significant order for his product. But he wanted the cash injection to fund the development of the next model. And he only wanted a set sum. He did not appear willing to consider other possibiliites

Finally, I asked him why he did not look for an investor himself. Guess what? David is too busy, as he himself develops, sells, deals with patents, handles the accounts and loads more. And remember he had turned down my offer of another pair of hands, because he saw this as consultancy work.

Clearly the conversation was going nowhere. In parting, David asked me if I knew of investors and the answer was yes. He does not have a business plan in English, although he is committed to writing one. He suggested that I ask my contacts if they will be interested in his project.

I asked him what would happen if I brought him an affirmative response. David sounded eager and told me he would rush to check them out. But he had already forgotten that he owed them a business plan before I would put them in touch with each other.

I do not know if David will succeed. How he intends to collaborate with sales channels is a mystery to me, when he cannot trust others around him. How he intends to move from thinker to business man is uncertain, as he has shown that he does not accept advice readily.

David’s brand of determined leadership successfully took him to where he is today. It is those same characteristics that are likely to hold up the next stage of his company’s development. 

Good leadership requires an ability to listen to those around you and to internalise those comments. That is often a direct challenge for good entrepreneurs, whose very nature is often compried of stubborness and individuality.

The past week has seen a string of hot news items, featuring Israel’s high tech sector. SunRay, heavily involved in Israel’s solar energy industry, has been bought for nearly US$300m by Sun Power.  DSPG is set to gain big time from the iPad era. Oracle has bought Comvergin. And so the list goes on.

Israel will hold 3 mega conferences in 2010 to enhance its global status in high tech. This week, Eilat will host of 2,000 delegates to its annual cleantech fest. In June, the roadshow moves to Tel Aviv, where Biomed will show off Israel’s latest contributions in nanotech and medical devices.

And I have just read of a fantastic opportunity later on in June 2010. Several thousand participants are expected in Jerusalem for an event which will link start ups with venture capital groups.

I guess that it is smart money that finds smart people to invest in.

What are the main factors which go into building successful and continuous economic growth. Speak to ex-Intel CEO Craig Barrett and he will talk to you about:

Smart people, doing smart things in a smart entrepreneurial environment

Simple enough. Barrett notes that Ireland’s boom decades were based on education. That’s what enticed Intel to the country. He continues by comparing Ireland to Israel.

He said that while two of Ireland’s universities are among the Top 100 in the world, neither are functioning as wealth creators in the same tradition as Stanford or Berkley in California or indeed universities in Israel. “The economics of Stanford, Berkley, MIT and Israel, this is what your future has to entail.”

What I found of particular interest was his observation that “90% of countries around the world envision themselves as potential leaders in the knowledge economy and it is no secret that technologies like nanotechnology are key.”

Israel has led in the industrial revolution based around communication tech. As for nano and cleantech, Jerusalem is buzzing with small set ups in these fields. The Eilot conference next week has 2,000 delegates registered, including some of the richest people in the world.

Intel has a been central part of the Israeli economy for over 2 decades. It is likely that the company’s latest 22 nanotechnoly fab will be built in the Holy Land. If that eventuates, the Irish will know why.

The Iranian threat to regional and global peace is very real and continues to grow. It is accepted that the country has a missile capability that can reach central Europe. And for all its denials, Tehran is close to a military nuclear facility, and has demonstrated open verbal intent to use it against enemies.

The West and many Arab states have had enough and are working their way towards imposing strong economic sanctions against the Islamic dictatorship. Whether the sanctions will achieve their purpose is doubtful, especially in view of the political determination of the Iranian President.

In parallel, the question will be how to ensure that the average Iranian person in the street does not suffer. Again, given the experience of sanctions imposed on Saddam Hussein and Iraq or North Korea, this is unrealistic. Neither reacted as did South Africa in the 1970s and both carried on rearming at the cost of civilian welfare.

When it comes to Israel, countries take a different attitude. It is now politically correct to target Israeli products manufactured in Palestinian territories. The reasons invoked – such as Israeli violence towards minorities – are never applied to imports from China or other similar regimes.

Rarely are the policies set out by governments, but arise as a result of local initiatives. In Sweden, the examples are more blatant. Yesterday, I met one Israeli exporter who manufactures spare parts for cars. His Swedish agent was in discussions with Volvo, when the manufacturing giant pulled out.  

The reason? The origin of the product. No – not in the West Bank, but in Israel pre 1967 borders. In other words, a direct boycott of Israel.

Many Swedes will argue that this is a political issue and has nothing to do with anti-semitism. Ingenious. This week, I read that many Jews are now fleeing from Malmo, Sweden, due to continuous hate attacks. I have yet to hear an academic Swedish explanation for what is happening nor have I heard of an official condemnation for the crimes.

And that silence is in itself a crime, a hideous moral crime.

Sweden’s boycott is unlikely to effect Israel. It is noticeable that it is one element of a growing cyber campaign against Israel. And here’s the ultimate hypocrisy. Most personal computers these days are aided through Intel tech, developed in….Israel.

It must be a mute point for the Swedish authorities that they are in the same camp as Iranians; both hate Israel, the Jewish state.

Buzzwords such as change and agility are very popular these days – how to create an environment that identifies a demand for change and then act ahead of time.

As my writings have illustrated, this is far easier said than done. Microsoft continues to disappoint with nothing truly revolutionary coming out of its r&d centres for years. Cadbury’s has fallen to a takeover from Kraft. And many of us are involved with or work for organisations that often cannot see the obvious straight in front of them.

There are exceptions. I have the pleasure of cooperating with an Israeli franchise group that has perfected their commercial model in the local market. After due research, it realises that its key unique selling points are applicable abroad, which is becoming the new company focus.

What is interesting is that these issues are also relevant at a macro level. Just listen to Simon Johnson, former chief economist at the IMF.

Mr Johnson called the G7 (countries) a “fundamentally useless organisation” for not reacting quick enough to the problem (of European debt) and for remaining in an out-of-date mindset.

“The G7 countries are completely asleep at the wheel. I looked at the information they put out from their meeting I was absolutely shocked.”

“They seem to show no awareness at all that much of Europe is facing a serious crisis and it’s not limited to Spain, Greece and Portugal, it’s also going to include Ireland.”

That is cause for concern, big concern.

In Israel, the economic focus is different. The key factors, which brought on the global recession, were dealt with painfully some years ago. Yet despite predictions for good growth in 2010 and 2011, the financial mandarins are still looking for improvement.

Ministry of Finance Director General, Haim Shani, observed at a conference last week that “If Israel could bring the Arab and ultra orthodox sectors into the labor market, we would benefit twice over. We would close wealth gaps and offer them opportunities on the one hand; and we would profit from their enterprise on the other.”

Change and ability – running an economy or a company – we all need to face it.

Israel’s economic model of February 2010 is the envy of many analysts. The Bank of Israel is in dispute with the OECD, IMF and others as to whether growth to December 2010 will be 2.5% or 3.5%. 

Argue it either way. But when you compare Israel to many other developed countries, few can offer similar predictions for the near future. In fact, even the techy issue of inflation is now close to control, as the Bank plans to increase interest rates gradually.

By way of comparison, I was struck by economic news from the UK. The two major political parties are waist-deep in slogans, as a general election approaches. Much of the debate concerns which economic model will deliver sustainable growth.

Again here, I will not pass judgement. What I did find amusing was that the Conservative Party this week rolled out a series of top industrialists, who commented on their vision of growth. To quote selectively from the “Parliament Today” website:

Paul Walsh, Chief Executive of Diageo, FTSE 100 company

“Our economy is struggling to keep up with its competitors. We need a new economic strategy to encourage businesses to invest and grow. The Conservatives plan would protect our international competitiveness and help get Britain’s economy growing.”

 Andrew Witty, Chief Executive of GlaxoSmithKline, FTSE 100 company

“If we are to rebalance and grow the economy then we need to ensure we look at ways to support manufacturing, innovation and research. I therefore welcome the focus on these areas and this plan to encourage savings, pensions and investment.”

Mick Davis, Chief Executive of Xstrata, FTSE 100 company

We are in a very complex economic environment where difficult policy choices need to be made. One of the key factors for success is renewed investment by the private sector. I think that this plan contains the important elements that will encourage such investment, addresses other imbalances and put us on the road to recovery”

Wonderful stuff for the Conservatives, but where have you been for the past 2 decades? And this question is rally applicable across the whole political spectrum. To call for growth is one thing. But you have to create the conditions over time, allowing agility and innovation. That ain’t really on the horizon for the moment.

Has Israel got it totally right? No. Is the Israeli economy in reasonable shape? You bet it is. So the lesson for the day is: Before you create another mouthwatering load of spin for your electorate, why not base your comments on a real case study of success. Have a look at why Israel is in her current economic position.

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