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Networking – a simple Israeli railroad approach

14 October 2009
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Categories: Business, Israel

I probably receive at least one e-mail a day, encouraging me and explaining to me how to network. Tweet this and smile at that! If I don’t do it, I should consider myself a fool, my business model sucks, and I should go back to cleaning the floors….or at least that’s how you are meant to feel.

The way out is to join whatever is being offered and see the light. At least I will have the benefit of losing the weight of another few dollars from my bank account.

Well, there is another method to network. In technical jargon, it is called the “bleeding obvious” method. It is available to all of us of us, all the time. And I recently discovered the trick, on my doorstep in Israel.

Here’s what I mean.

First, in former days, I belonged to a youth club. Not the most active member, still I was around for years. Well, it seems that many of us are now living in Israel. In fact, we had a get-together about a month ago; 400 people of all ages and backgrounds.

The event was 100% a social occasion. But if you listened carefully and dropped in on conversations, you could hear people talking about work, employment and other such issues. We were networking, without even realising it, and it was fun.

Last week, I organised a supper for former pupils of my school, who are now living in Israel. I had collated a list of 25 names, and many turned up – even with a few spouses. Again, a fun evening, but with plenty of accidental networking.

All of us are part of social groups, and not just from current activities. And whilst we should not be explotive, they can be put to extensive commercial use. This is not being cheeky or rude. There is no need to use twitter. Just talk and communicate with people.  After all, that is why humans developed language skills in the first place!

On Israeli railways, this form of networking has reached new heights. For example, if you take the morning train from Bet Shemesh to Tel Aviv, it is known that the last 2 carriages are only for those who wish to pray. They have their own “club”.

And yesterday, the train from Haifa to Beersheba hosted “speed meeting”. The train was full of small business execs, who had deliberately boarded to introduce themselves to like-minded people. Everyone was delivering one-minute speeches on themselves. A dynamic, high speed event.

Simple. Networking means talking – conveying a message. The rest is commentary. Just go and find the right forum for you to do it.

Small businesses in Israel (1)

13 October 2009
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Categories: Business, Israel

Go to China, USA or Nigeria. One of the few microeconomic facts that can be found everywhere is that small businesses comprise around 95% of economic activity.

Here’s another common detail. Many governments want to help these enterprises. Politicians love to be seen cuddling up to local successes. But the truth is often a very different picture. Bureaucracy and officialdom often culminate in a bank of goodwill that cannot be converted in to practical help.

Hardly surprising. Public authorities work well when they can wrap the challenge into a neat box to fit large communities. Apart from their name, small businesses are not a compact group. They work from home or not. They distribute, manufacture, compute, or not. They are internally dynamic, or not.

In Israel, the government has recently announced a package of help for small commercial operations. Lots of goodies for companies, who have spent 12 months weathering the global recession on their own. Those who have survived are now near independent.

It was a similar story after the war with Lebanon 3 years ago. Although much help was promised to local firms in the north, it took far too long to come through. The true beneficiaries in the short term were the sellers of A4 sheets of paper to government offices.

If that was not bad enough, I recently attended a lecture by Nitzan Ehrlich, the CEO of Aviv. Specialising in helping small companies find financing, he noted that the country is full of public and private funds for struggling businesses, but few people know about them. Absurdly, he noted that some in the relevant ministries do not even know how to start the application procedures.

It is time to give some genuine attention to this sector, which tends to hide a rich wealth of entrepreneurial talent.

Mum’s motivation at the workplace

11 October 2009
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Categories: Business

“Hating what you do” is how The Economist magazine titles its latest managerial insight.  

Many companies today are run by cloudy demands from above to improve individual performances. The article noted that a major source of misery “is the drive to improve productivity, which is typically accompanied by an obsession with measuring performance.” And despite giving your all, you are still expected to be loyal and give even more.

For what?

“Mumpreneurs” is a new catch phrase, often referring to young mothers, who cannot – usually, do not – want to return to their place of work after giving birth. Google the phrase and you will find a facebook group, professional coaches in the subject and a growing professional literature.

According to many experts, entrepreneurial women seek flexibility. I would add to that statement and argue that is precisely what many desire, regardless of their gender.

This weekend, I was reading my wife’s copy of the Australian Women’s Weekly. I suppose that it is just my limited chauvinism why I cannot understand why the word “weekly” appears in the title of a monthly journal.

But I digress. The magazine featured 3 innovative mothers, who have successfully created new businesses out of their own creativity and desire for a change. They balance the challenges of the home with the opportunities presented by their enterprises.

Presenting educational shows for kids, selling maternity clothes in rural areas, novelty presents – these are the new businesses that are featured. The approach in each case was different. What links the stories is the high level of motivation and the strong managerial skills of those involved.

Meanwhile, back in the corporate world, sophisticated boffins around the world are paying consultants loads of cash to teach them what these ladies worked out for themselves with pukey infants on their laps.

Israel’s economy in celebration mood

7 October 2009
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Categories: Business, Israel

This week, Israel is celebrating the Festival of Tabernacles. The annual Jerusalem March saw 70,000 Christians, Jews and others parade joyously through the centre of the holy city.

In parallel, the country’s business sector has been revelling in a successful week for commerce.

  • The Tel Aviv Stock Exchange has hit a 13-month high.
  • Despite having just emerged by a deep recession, the Bank of Israel now holds record reserves of foreign currency.
  • Israel’s generic drug giant, Teva, has made 20th place in the “BusinessWeek” World’s Best Companies/Global Top 40 list.
  • Following on, the Minister of Finance, Steinitz, committed Israel to supporting the G-20 initiative to increase resources available to the IMF and will loan it, upon demand, money from its foreign exchange reserves.

“Israel is willing to play its part in contributing to the IMF’s resources and will participate in the two main funding programs – the NAB (New Arrangement to Borrow) and the Voluntary SDR Allocation – that were recently announced. Upon demand, the IMF would be able to get a loan, up to 500 million SDR [$316m.], that would be paid from Israel’s foreign exchange reserves,” said Steinitz. “In addition, Israel will be committed to purchase its allocated SDR. This will be implemented as an investment from our foreign exchange reserves.”

As Steinitz added in his speech, there is still a lot of hard work ahead. However, just as Israel has had to swallow pride and learn from other counties in the past, today the Holy Land has much to offer the international business community.

Jordan confirms Israel’s centre stage at IMF

5 October 2009
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Categories: Business, Israel

A few days ago, the IMF confirmed Israel as one of the stronger countries emerging from the global recession.

Yesterday, Sunday, delegates at the annual IMF roadshow were treated to a presentation on Israel’s success. Significantly, Israel is now using two macroeconomic tools, which other countries are still backing away from; budgetary cuts and an increase in interest rates.

The Israeli newspaper, Yediot, has observed that Israel’s finance minister and also the governor of the Bank of Israel received praise from several sources. One notable quote came from Bassam Hilel al-Salam, Jordan’s minister of finance, who observed that Israel is managing the economy correctly.

Israel remains a small economy. It has only just joined the OECD. But it is evidently a growing economy, whose companies make strong contributions globally in hightech, biotech and cleantech. It is one of the largest defence contractors in the  world. Microsoft’s latest anti-virus tech was developed in Israel.

And so the story will continue, which is why the boffins of the IMF are interested in what is happening in the Holyland.

Israeli economy, recession and the opportunity

2 October 2009
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Categories: Business, Israel

The “Economist” magazine has led with a fascinating article, outlying how clever companies have seen the global recession as an opportunity, and not just a free fall to disaster.

The article notes how DuPont, P&G and many others thrived on the 1930s Great Depression. In the early 1990s, “Bain & Company discovered that twice as many firms made the leap from “laggards” to “leaders” (ie, from the bottom quartile of companies in their industry to the top quartile)”.

And in the past year:

There is also every reason to believe that the current recession will produce lots of upstarts. The Kauffman Foundation, which studies entrepreneurship, points out that about half of Fortune 500 and Inc. 500 companies (lists of the biggest and fastest-growing firms in America, respectively), including such household names as FedEx, CNN and Microsoft, were founded during recessions or bear markets. A disproportionate number of these upstarts produced industry-changing ideas that established companies failed to appreciate until it was too late. Indeed, business is more likely to take advantage of this “serious crisis” than the world’s politicians.

In the late winter 2009, I wrote about a conversation with a UK banker, who compared the Israeli and British attitudes to the recession. He noted that neither country could avoid it, but Israelis tackled it head on. They saw it as just another challenge to go out there and to perform in the market place.

Because of this psyche and because of Israel’s economic structure, I had always predicted that Israel would be one of the first to emerge from the recession. Enter the IMF to confirm what is happening to the local economy.

The IMF’s forecast of a 0.1% GDP contraction (for 2009) is better than its forecasts for all other developed economies, including the US ….. The IMF predicts an overall contraction of 3.4% for developed economies as a whole in 2009.The IMF’s growth forecast of 2.4% for Israel in 2010 is also among the fastest rates projected for next year among developed countries. Only five countries are predicted to do better.

No, not everything is rosy; worrying unemployment figures. And the shekel is too strong against the currencies of major trading partners, a disturbing parameter in an export dominated economy.

So, I will leave the last word to the Governor of the Bank of Israel, Stanley Fisher, and his usual cautious optimism.

“Today, I’m less worried. It’s possible to relax, but not to overdo it; there are still problems, and still more things that need to be done. I am however concerned that, because we are emerging quickly from the crisis, we might not derive from it all the lessons that we should, particularly in the financial system.

Short lesson in sound financial management

30 September 2009
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Categories: Business, Israel

Credit crunch, Madoff, Lehman brothers – we are all wise after the event. But what does it take not to lose all your savings.

Leora Meridor is an experienced  banker and wife of a minister in the Israeli government. She sits on the board of many leading international companies. So what? How many others can point to similar resumes and still lost their trousers?

In March 2009, she was appointed by Tel Aviv University as head of their committee to supervise the institutions’ investments. No small matter. In Jerusalem, the Madoff crisis had wiped out a series of student grants. Tel Aviv’s portfolio had lost over US$40 million over the previous 6 months.

First of all, Meridor opened up the files to understand for herself what her portfolio contained. In other words, she got her hands dirty and did not merely rely on advisors.

She then realised who her client is – an academic institution, which should not be looking to take risks for short term gains.

The President of the university may not have liked her active intervention. Yes, as stock markets have zoomed up by tens of percentage points, the portfolio has missed out some of these gains.

As the global crisis demonstrated, Rome can be built in a day. But it can also collapse in a matter of hours. Tel Aviv University, a fine house of academia, now has a much firmer financial future to develop a path of learning for others.

Boycotting Israel – why?

24 September 2009
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Categories: Business, Israel

The following article was first published in Hebrew on 23.9.09. He was written by Joshua Sobol, one of Israel’s most popular playrights and long associated with left-wing issues.

The British trade unions decided last week to call for a boycott of Israeli goods produced beyond the Green Line.  They added, in the same decision, a call for a general boycott on the transportation and sale of Israeli products in Britain.  Likewise, they are calling to freeze contacts regarding the upgrading of Israel’s relations with the European Union until the Palestinians receive justice.

 

There is a reasonable chance that the decision to impose a boycott on Israel by British unions will achieve two results.  On the one hand, it will strengthen the Israeli Right, because the boycott will undoubtedly be perceived by the majority of Israelis as an expression of hate towards Israel by the European Left.  Thus, this pathetic boycott will award another merciful blow to what remains of the Israeli Left which, beaten and wounded, has been crawling towards the right since the Al-Aqsa intifada (which, actually, is the second Naqba that the Palestinians have brought upon themselves).

Additionally, this boycott will spur and develop the special Israeli talent to make the most out of pressured situations.  It already happened in the past when [French] President de Gaulle imposed a total embargo of weapons shipments to Israel as punishment for embarking on the Six Day War against his advice.  This same French embargo instigated the awesome development of Israel’s military and air force industries.  If Israel became a major power in the production of UAVs, anti-missile missiles and a wide ranging arsenal of the most sophisticated weapons of war, indeed it is thanks to the boycott which de Gaulle imposed on us.

Another fact, which until now has perhaps not been given sufficient exposure, is in connection to the contribution of the Arab boycott to the development of the Israel pharmaceutical industry.  I heard from a man who headed one of the flourishing medical industries, that after European pharmaceutical corporations capitulated to the Arab boycott in the first years after the establishment of Israel, the Israeli pharmaceutical industry had no alternative other than to expediently fill the shortage of medicines that was created as a result of the boycott.

Thus, the Arab League contributed to the establishment of Teva Pharmaceuticals, and it turned into a flourishing international giant, which competes globally and, with great success, crushes the same corporations that capitulated 50 years ago to the Arab boycott.

Jews have always been the target of boycotts, imposed on them from time to time by the hateful and the mighty.  It is no wonder, indeed, that we have learned how best to profit from malicious boycotts that have been imposed on us.  It is possible to say that an anti-Jewish boycott is Jewish oxygen.  Even the relationship between the Israeli people and their God is a relationship of uncountable shunnings and bans.

The bans which God imposed upon his people gave birth to two Jewish reactions to this divine ban: Orthodox Jewry repeatedly knocks every day of the year, but especially during the Days of Awe, on the gates of heaven requesting that the divine ban be repealed; whereas atheistic Jewry departed, sighing, from God and his bans, and decided to make the best possible advantage of this essential disadvantage.  From this position was born political Zionism.

Perhaps an intelligent Englishman will be found who, armed with these facts, will enlighten the heads of the British trade unions who rushed with elation in their hearts and pen in hand to sign this new boycott of theirs; perhaps someone will be found who will enlighten them as to the extent of the responsibility which they share for participating in the foiling of Obama’s initiative.  Because they, with their theatrical gesture, have succeeded once again to imbue the Palestinian leadership with the delusion that they have someone to count on in perfidious Albion, and as a result the Palestinians will harden their terms and torpedo the resumption of talks, to the delight of the Israeli Right, which can once again claim that there is no one to talk to.

Once again, the miserable Palestinians are paying the price for the empty gestures of the irresponsible European Left, which derives satisfaction from the very gestures it makes.

Fun and successful management

24 September 2009
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Categories: Business, Israel

Allow me to plug myself. Go to my LinkedIn address. What I do is enable “senior managers to enjoy their work”. To rephrase, I accept that progressing towards a vision is often hard work and time consuming, but it can also be fun.

When I put the idea to people, I encounter a series of reactions. In some, the “macho” Israeli instinct comes flying out at me – “we must struggle, as that is our tradition”. And you know that the rest of the meeting is not going to go very far too quickly. 

Yet quite often, people become intrigued. You can see a light flicker on at the back of their mind. Little Jimminy Cricket is squeaking: “You mean I can get rid of half of these facial worrylines, and still succeed?”

 I was reminded about all this a few days ago, when I read a wonderful piece in the Financial Times:  “Leaders who use charm to reach the top”.  Get the first line….”Humour and charm are a surprisingly powerful combination as a means of ascent in life”. The author concludes by observing

outstanding business leaders who persuade their teams to laugh and try harder: they apply themselves assiduously to the task. Most world-class chief executives possess charisma – really a captivating blend of charm and wit.

The article cited President Reagan as a master in persuasion of the masses. True, but a better a more lasting example is Bill Clinton.

So how many of you laughed at that last comparison? Yup, sexual innuendoes etc. Again true, but have I not just proved my point. He is a master at working a crowd or an individual, making them feel good and enabling them to do what he wants.

In effect, Obama’s slogan of “yes we can” had been around for many years previously. (His skill or added value was to empower new voters through the internet).

Now take these messages in to your work place. I look at my wife’s two senior executives. In her many years with them, she has rarely heard a negative phrase uttered from their lips. And this is a company that has a track record in beating downturns.

We can all bitch about pay, conditions and the like. However, for many of us, a prime method of being motivated towards improved output is to being made to feel that we are doing a good job. A key tool in that process is charisma.

More positive signals from the Israeli economy

23 September 2009
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Categories: Business, Jerusalem

The “State of Economy” index, a combination of 5 leading indicators rose by 1.3% in August. This is the fourth consecutive monthly increase.

Particularly encouraging was the sharp rise in exports. This was matched by an increased demand for workers and a corresponding drop in the numbers of unemployed.

The economy has yet to return to “complete normality”. Despite the above, industrial production continues to fall. And the shekel is rising against most of the major currencies, placing a strain on the profitability of exports.

Look closely at what Israel does – management

21 September 2009
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Categories: Business, Israel

This is the third and final report on a different side of Israel. It is particularly pertinent this week, as together Jews are celebrating their New Year and Moslems are entering the feast of Eid al-Fitr.

Both religions have in common the prophets from the Old Testament. As a practitioner of NLP coaching remarked to me last week, the theologies of all the main religions can be found in modern management and motivation techniques.

To give a specific example: Israel comes to a standstill for the New Year. Yes, it is a period of celebration, as witnessed by the amount of dieting we all try to undergo afterwards.

In parallel, the religion demands that it is a period of reflection. How can a person improve themselves, specifically in relations between themselves and others. Only when this thought process has been completed can they ask for forgiveness from God on the Day of Atonement, which follows only 10 days after the New Year holiday.

I have spent much of the past month reading up on the subject. I can recommend the book “Essays on the days of awe” by Rabbi Chaim Sabbato. And the more I read, the more I realised the comparison with the theory of managing human resources.

Here’s what I mean. When somebody goes to a coach in their private life or professional career, they are looking for help. Broadly speaking, they want that coach to offer them a sign of hope, which they can latch on to.

The coach frequently engages the client in a process of inner reflection, forcing the person to ask some hard questions about themselves. And how is this done? Often through a combined process of deep thought and verbal admission, which produce a working plan of what needs to be changed.

Now look at the book of Deuteronomy – Chapter 30, verse 14:  “And the word is very close to thee, in your heart and in your mouth”. There are several interpretations to this innocuous-looking statement.  

Clearly, what the reader is being told is that what you need to do is look intimately at yourself. The tools to run and to improve your life are close at hand, often without you realising it. Do not be frightened; think positively and state truthfully what needs to be said, without fear of others.

And now I understand why there are so many capable and competent life coaches in Israel.

Looking closely at what Israel does – Economy

18 September 2009
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Categories: Business, Israel

As Moslems and Jews prepare to celebrate important festivals in their respective calendars, the first item noted how the Palestinian economy is moving forward. The two major factors have been reduced violence, ensuring increased Israeli cooperation and input.

Here, I consider how Israel has long been known as one of the key hightech centres of the world. Siemens, Microsoft, Google, Intel and many other multinationals have strong r&d centres in the Holy Land. More recently, Jerusalem has led the revolution in new solar and water technologies.

Just take some specific items of news from the past week alone.

Techcrunch is a premier competition for start ups. 4 Israeli or Israel-connected companies were in the top 6 places. This includes the eventual winner, Red Beacon, connecting consumers to local services.

N-trig, a major player in the touch screen market, has secured a major contract with Lenovo, China. N-trig’ duo sense, 4-fingered application will enable the latest notepad features.

Brainstorm Cell Therapeutics Ltd is about to commence a pre-clinical safety trial for the company’s innovative therapy for ALS – Lou Gehrig’s disease. The CEO announced that they will use a locally based contract research organisation (CRO),as it will be better received by regulatory authorities.

And the list goes on – Israeli tech having a direct impact on the lives of millions around the globe. Imagine what would happen (or not happen) if this Middle East version of Silicon Valley did not exist.

A year ago, the credit crunch grabbed the world. Today, the Tel Aviv stock exchange is 10% higher than 12 months ago.

Look closely at what Israel does – Palestinians

17 September 2009
1 Comment
Categories: Business, Israel, Palestinian Society, Palestinians

As Jews to prepare to celebrate their New Year and Muslims conclude the fasting period of Ramadan, I have prepared a series of article on what you may not know about Israel.

The first text questions if Israel is really interested in helping the Palestinian economy.

Early next week, the ad-hoc liaison committee monitoring international aid to the Palestinians will meet in New York. Israel prepared a submission, heavily reliant on stats supplied from the Palestinian Bureau of Statistics.

Some the highlights of the report reveal that:-

  1. Since 2008, foreign investment in the West Bank has risen by 600%. (You have to ask why the same is not true for Gaza.)
  2. The IMF estimates that GDP in 2009 will climb by 7%. To Matching this, unemployment dropped from 20% to 16% in 2Q09.
  3. Direct and indirect trade between the two territories continues to climb. In fact dozens more roadblocks were removed this week.
  4. The number of work permits and the accredited business cards issued for Palestinians in Israel is rising almost daily.
  5. Cooperation over tourism, VAT collection, fiscal issues and other commercial matters have been launched from Jerusalem in the past year.
  6. Despite the Hamas authoritarian rule in Gaza, humanitarian supplies are continuing almost daily and at a growing rate. This includes nearly 3,500 tons of medical equipment delivered in the first 6 months of 2009.
  7. In June 2009 alone, 1,700 residents of Gaza received medical treatment in Israel. Under the Oslo Accords, Hamas is responsible for health policy and its implementation.

As I was writing this, news came through from the United Kingdom that the Trades Union movement has voted to boycott some Israeli goods, following Israel’s policy towards Gaza. Ironic? Or a reminder of a sinister past based on ignorance?

Israel’s economy – the good and the worrysome

14 September 2009
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Categories: Business, Israel

As Israel emerges from the recession, the country’s economic managers are having to cope with a barrage of mixed news.

Let’s start with the positive stuff. Looking at the June – August period, exports soared 25% at an annualised level. Despite, the financial problems of Africa-Israel, one of the country’s largest property groups, the stock market continues to climb. Consumer confidence is also in the ascendance.

What is worrying is the strength of the shekel, in an economy that is dependent upon exports. Dollar denominated trade makes up over half the balance of payments, and this is a currency in trouble around the globe. The profitability of sales outside Israel is taken a major hit.

The Bank of Israel has tried to manage its policy of buying dollars, but this now longer works. The signs are not encouraging, with Morgan Stanley suggesting that the shekel may appreciate a further 10% by the end of 2010. That is bad news for exporters, who have already spent much of the past 12 months cutting out spare fat.

What is interesting is that many analysts still predict 2%+ growth for Israel in 2010. This indicates that the country will either find new markets or that domestic consumption will pick up more of the slack.

The plot thickens.

Why managers do not blame themselves

13 September 2009
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Categories: Business

How often has something gone wrong at work, and the last person you have blamed is yourself?

Or, to rephrase: You reprimand yourself along the lines: “I should never have let so-and-so do……. etc etc”. But even then, you are still implicitly putting the onus on somebody else.

Let’s take a moment for a reality check. I’ll shall start by calling in managers of human resources. I recently found a fascinating analysis as to why employees do not perform at 100% capability. Under 6 headings, the reasons are: –

  • Can’t – because they are unsuited
  • What? – nobody communicated the task properly
  • How? – nobody explained the tools
  • Why? – a.k.a. motivation issue
  • Expectations – predetermined levels on the side of the employer
  • Insubordination – on the side of the worker

The bad news for management is that of the six categories, only the last one is the fault or direct responsibility of the employee. The rest lie in the mandate of the superior. Ouch!

And f you do not agree, take any situation of the past few months, and ask yourself some hard questions about your own role.

Marketing guys – it’s your turn now. How many of you in the past year have said: “It’s the recession”? Well if that was the case, Walmart, M&S,  Boeing, et al would have all shut up shop by now, or severely downsized. Oh VPs of Sales and Marketing, what are you not seeing?

Have a look at LEADTRACK. For 30 years up to 2009, their market research continues to reveal that:

More than 50% of qualified leads are never worked by sales.
Less than 50% of a sales persons time is spent selling.
80% of trade show leads are never followed up.

As the article concludes, you cannot blame the economy if: –

•Your reps spend the majority of their time in non-sales activities
•More than half of your costly qualified leads are never worked by sales
•80% of your trade show leads are never followed up

In fact, in today’s Israeli newspaper, I have read that “Rami Levy”, a small grocery chain, is about to launch a major expansion programme. The CEO has identified a niche market that receives few dedicated resources, and that is where he is investing his reserves of cash. 

I leave you managers with one question. Next time something goes wrong and it is in your domain, how honest will you be when analysing who mucked things up and why?

What economic peace can mean for Palestinians

11 September 2009
1 Comment
Categories: Business, Israel, Palestinians

Netanyahu, Olmert, Rabin and Barak are just some of the leading Israeli politicians, who have seen to promote peace with the Palestinians through economic cooperation.

The Peres Center, set up over a decade ago by Israel’s current President, has been more active than most in this sphere. A glimpse at the organisation’s website reveals a myriad of recent projects: –

  • A training course for 20 Palestinians in the meat packing industry.
  • Through “Cisco Israel”, training Jewish and Muslim women together for hightech.
  • The Agriculture, Water and Environment Department organised a professional research visit to Jericho and Auja for representatives of the Israeli and Palestinian Ministries of Agriculture.
  • Sixteen Palestinian handicrafts companies presented their products in Israel’s leading house ware gifts exhibition “Giftec”

The Peres Center has also hosted a roundtable discussion of senior Israeli and Palestinian economists entitled, “Economic Prospects for Israeli-Palestinian Relations”. And so the list goes on.

This is all very positive stuff. So imagine my dismay when I read thias week that “Palestinian Authority Economic Minister Bassem Khoury said he would not hold any further meetings with Israeli Minister Silvan Shalom concerning economic cooperation between the two governments”.

You have got to wonder why. If the two sides are going to get together, this short-sightedness must cease. Go to the industrial park of Atarot in North East Jerusalem and watch peoples working together on the ground. Visit the Wolfson Hospital, which specialises in treating Palestinian infants, and see Palestinian mothers sleeping next to their kids in Tel Aviv…with prayer mats purposely provided.

It is paramount for such confidence building measures to become a two-way methodology. I suggest that it is time for Khoury to ask his own President, Mahmoud Abbas, to establish a Palestinian equivalent of the Peres Center. That could be a major step to breaking down barrier.

Decison making models; techniques not to copy

8 September 2009
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Categories: Business, Israel

I help companies make decisions. What may seem simple to the outsider is often complicated to those that carry the responsibility.

There are all kinds of models to copy. There are many different ways to learn. For example last week, I attended a function, hosted by the British ambassador in Israel. It was in honour of a delegation from Israel’s Technion University.

Every year, the Technion sends a high profile team on a benchmarking overseas visit to study commercial techniques. This year, the tour is to England, where they will meet with executives from the fields of banking, oil, hightech and even Manchester United. The aim is to learn what these people do right and wrong.

And boy, does Israel need to learn! Yesterday, my good friend, David Frankfurter, pointed out an article in “Ha’aretz newspaper. Ostensibly, the item refers to Israel’s position in the West Bank.

Look more closely, and you will find a catalogue of important decisions, which governments have been unable to implement; Major-General Giora Eiland is the former chief of the National Security Council, and he stated openly: –

On the level of the state, is the state capable, yes or no, of taking steps which are certainly politically controversial – the answer is certainly not. We are a neutralized country. What, that isn’t clear?

Many will blame coalition politics for this trimph of eunuchs. I think otherwise.

Eiland listed a number of crucial projects; the withdrawal from Gaza, protecting travellers on airplanes, regional development – all multi-billion dollar stuff. He summarised.

Israel is like a man walking in the dark. He has a flashlight, but it is off and doesn’t light the way in front of him. When he hits a rock and falls to the ground and his nose is in the mud, he says: ‘How do we get out of this?’ That he’s not so bad at doing. But to use the flashlight to light the way so he can see the rock, that he doesn’t know how to do

That is a lesson for leaders all over the world, be you a Prime Minister or the owner of a small company; use some basic support mechanisms, which are often right at hand.

Norway, the Palestinians, selling weapons

6 September 2009
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Categories: Business, Israel, Palestinians

The Norwegian government has made an ethical decision. It will no longer include Elbit, a large Israeli defense contractor,  in its investment portfolio. This is because some of Elbit’s products help to maintain Israel’s security barrier, which Norway considers illegal.

On the surface, this all sounds very noble. But scratch just a little bit, and lot of yucky blood quickly oozes out from Oslo’s skin.

To start with, Norway has spent a lot of its own money, directly and indirectly, funding an anti-israel narrative, specifically through aiding NGOs that seek the destruction of Israel. So clearly, Norway’s claims that her financial decision is not designed as a boycott of Israel is less than convincing.

In fact, Norway is only following the thoughts expressed in many other European countries recently. A notable example are the views frequently stated in Westminster by all the main parties. So let’s call in hypocrisy mark no’ 2:

A recent report by Frost & Sullivan has noted how defense spending by Middle Eastern countries has defied the global recession. And guess which states are benefitting from this loose change? Yup, our European friends. To quote a respected analyst, Tom Gross:

Defense spending in the Middle East will exceed $100 billion by 2014. Saudi Arabia and the United Arab Emirates are spearheading the arms race in the Middle East. Both countries are particularly nervous about the rise of Iran and what they perceive as President Obama’s weak response to Iranian nuclear ambitions.

The report says that Saudi Arabia looks set to spend at least $36 billion annually over the next five years. “The ratio of their defense spending to that of their total GDP is the highest in the world,” it notes, stressing that the ratio was unaffected by the global economic slowdown and fluctuating oil prices.

According to the report, Jordan is eyeing 85 AIM-120C-7 advanced medium-range air-to-air missiles and 120 C captive air training missiles in a deal estimated at around $130 million. Bahrain is also considering the purchase of 25 AIM-120C-7 missiles.

Separately, RIA Novosti reports that Saudi Arabia is to buy 30 Mi-171B Russian military helicopters. The Saudis have traditionally bought only Western, mainly U.S.-made, military equipment, but have recently expressed an interest in acquiring Russian weaponry, including S-400 air defense systems, T-90 tanks, BMP-3 infantry fighting vehicles, and various types of helicopters.

Anybody seen the barrier that Saudi is building along part of its unofficial borders? Anybody considered how pluralistic these states…are not?

And even if you feel these points are not so relevant, consider this twist. The Economist recently compared where most Arabs have lost their lives in military conflicts. Over a million lives have been destroyed in the past 2 decades, including around 2 thousand Palestinians. I will accept that any life lost is one too many, but to start targeting Israel as “le votre culprit” is a bit…well, stupid.

Over the next few weeks, Iran will publish a large tender for its mobile telephone sector. European companies will be asked to participate. What will Norway’s stance be on this issue?

Managing patents and ideas in Israel

1 September 2009
1 Comment
Categories: Business, Israel, Jerusalem

Israel has been bubbling with ideas for over three decades. 

Israeli hightech can be found in computers, mobile phones, operating rooms and wherever else around the world. The country leads in developing solar and water technologies. Israel’s defence related exports easily place the country among the Big Seven global manufacturers.

Managing all this brain power has led to the creation of a whole new industry. What do I mean?

First, let me introduce you to QMarkets, a new Tel Aviv-based software outfit. I have been associated with them for some time now. They have developed a fast and efficient company-wide platform to convert new ideas into practical applications.

Interestingly enough, one of QMarkets first customers is an international concern of business analysts, concerned with economic modelling. The software enables the client to generate new revenues.

A second expression of the knowledge boom is to be found in the patent industry. Based on 2008 stats, Israel ranked third in the world for the number of registered patents per capita.

This week, I was asked to attend a seminar, hosted by one of Israel’s leading patent attorney’s outfit, JMB, Fa©tor & Co. Their leading team gave an impressive survey of the demands of the industry, particularly with regard to the country’s enormous biotech sector.

Consider for a moment why Siemens, Microsoft, Intel, IBM and other mega multinationals all have large r&d centres in Israel. That is an idea for overseas investors to follow up.

Bernanke and the Israel effect

29 August 2009
1 Comment
Categories: Business, Israel

Ben Bernanke, Chairman of America’s Federal Reserve, is receiving more and more credit for leading the global economy out of its recession. The honourable gentleman has a doctorate, gained from MIT, while studying with Stanley Fisher. Mr Fisher himself has had a distinguished career in international finance and is now governor of the Bank of Israel.

Very nice, but so what? The answer lies in a fascinating interview (in Hebrew) that Fisher gave on Friday to the “Yediot” newspaper.

Last week, Fisher gave a lecture at the annual symposium of banks in Wyoming. There he challenged an overwhelming consensus of financial leaders, who appeared resigned to keeping interest rates low for the next several months.

Fisher returned to Israel, where as I have indicated in recent postings, most of the leading indicators show that the recession has long since bottom out. He duly raised the interest rate by 0.25% to 0.75%.

In the interview, Fisher commented about his continued strong connection with Bernanke. At the same time, he noted that Israel’s economy appears to ahead of many powerhouses in the economic cycle. He would not rule out another rise before the end of 2009.

This is a tough balancing act. The interest rate will allow the shekel to appreciate, reducing the profitability on exports, on which Israels economy is dependent. On the other hand, inflation is beginning to raise its head.

It was a bad tsunnami to go through. The aftershocks may also bring a few surprises.

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