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Israel’s average wage – what it says about the Prime Minister

10 September 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Arguably, it has been a lousy week for Israel’s Prime Minister, Benjamin Netanyahu.

Things began to go wrong when he negotiated a deal so that work would not take place on Tel Aviv’s new light railway structure during the Jewish Sabbath. This turned out to be a political agreement to please ultra orthodox Jewish Parliamentarians, which constituency rarely serves in the army, at the expense of soldiers trying to reach bases on time. The public backlash forced Bibi, as he is colloquially known, to transfer responsibility on to another minister.

A few days later, a building site collapsed killing 5 people. As similar tragedies came to light, it has emerged that government has neglected this industry. Contactors get away with murder, while supervisory budgets are frozen.

Amongst all the fury, the release of yet more statistics from the National Institute for Social Security has passed by unnoticed. In my view, they are no less disturbing.

Before continuing, please remember that Israel is enjoying record low levels of unemployment. High tech salaries just keep on rising.

However, it appears that half of all Israelis earn less than 6,500 nis per month, as of the end of 2014 – about US$1,650. If the average monthly wage is around 10,000 nis, then an awful lot of the country’s 8 million citizens are being left behind in the struggle for a better society.

I will leave it for government supporters to explain what is being done about this sad performance. But note, most of the key areas of support for Bibi’s Likud party now lie in the population areas along the Tel Aviv coast line. Here, the average family monthly income before tax is about 25,500 nis. The figure for Jerusalem is about 12,500 nis – over 50% less. For comparison, Haifa’s level is put at 22,901 nis.

I am stunned that such high discrepancies and how they continue unchecked. Whatever happened to the caring society? And given everything, should we really expect anything more substantial from Bibi’s team?

Is there a correct way to ‘dump’ a customer?

7 September 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

All businesses have them. Whether you are as large as Boeing or just a shop owner, we all are faced with the client or potential customer who you just do not want to deal with. They are a pain.

These people come along in different disguises. For example:

  • They ask for one last discount, again and again.
  • They ask for price quotes on many related items, without every deciding on what they want
  • They raise irrelevant issues about the quality of the service or the product in question.
  • They compare you to your competition
  • They demand to know a breakdown of your costs, forcing you to justify your price.

And so the list goes on.

What links all of these points is that they keep nagging at you. This forces-encourages you to change your stance, just to please them. And that only leads to more exasperation.

What prompted me to write this blog was because a friend of mine in the Jerusalem area posted a plea for help yesterday. He was going through this very issue. What should they do?

Most of the responses centred around the theme of telling the potential customer to go away. If they could find a cheaper alternative elsewhere and that was what was important, so be it. Let them walk. And my friend would feel so much better, if only because he would be rid of the troublesome problem.

My work, as a business coach and mentor has led me to help out in many similar situations. I consistently argue the following two points. First, the client probably has yet to realise what they want. Therefore, especially when dealing with a customer in-the-making, a sale in unlikely to eventuate for you. They are projecting their uncertainties on to you, the seller, and thus making you feel worse than them. Both sides are now annoyed at the situation and with each other.

Second, and most important, you need to make a decision as early as possible that you neither want nor need the business. In addition, there may be future hassles as well for all you know, if this is how you have started out.

But, how should you say NO? In the above scenario, most of the advice offered was to be outright. Tell it ‘to their face’.

I argue that you should stick to your original or updated proposal. You can explain that this reflects a fair price for a great product, and that is why many others purchase from you. This allows you to maintain your pride and your branding.

The point is that you show to yourself just how professional and commercial you are. It enhances your self-confidence for when you have to face a similar ordeal, which will come along sooner or later. The alternative method, mentioned above, does not put the emphasis on you and your skills.

And you never know. Sometimes, occasionally, the customer comes back to you and apologises……..and accepts your offer! Yes, it has happened.

Why we can all do with a business coach – 3 anecdotes

1 September 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Almost invariably, when meeting a prospective client, they pose me the question: “Why do I need a business coach or mentor?” Usually, there is an innuendo, implying that my qualifications are not worthy of their custom.

Hmm! It is true that mentors have not spent years, negotiating exams like doctors and accountants. On the other hand they bring to the table a very special cluster of skills, which need to be understood in greater detail. Three recent stories, impacting on clients of mine in the Jerusalem area, highlight what I mean.

Let us call our ‘heroes’ Arnie, Bertie and Chrissy.

Arnie was a troublesome client. He never allowed himself to be pinned down to set meeting times. Clearly talented, he claimed he had excellent clients. And yet he was looking for help.

Progress was slow. He did begin to hail in a few new clients, as he became more time-focused. However  suddenly, after three meetings, he disappeared. And that was that for about three years…………until I read about him yesterday. He is clearly on top of his game and loving it.

My point is that I would like to think that I had a hand in ‘getting Arnie straightened out’. I had started to pose questions, where the answers required a combination of facts, strategy and some very deep soul searching.  What did he really want to do next and how? While I could see that he was finding it a struggle, evidently something eventually changed for the better within him.

Bertie is more amenable to challenging questions. Early on in our meetings, he told me how one of his own and more lucrative clients was about to end their contract. I encouraged him to look at the picture differently and then to offer an updated business model. This he did, and they were delighted with his subsequent performance.

Bertie sent me an email this week, enclosing a copy of a message of recommendation from that same client. Their business had been transformed. It looks as if they are about to re-engage him.

And then there is Chrissy, full of talents and seeking to establish a very innovative business in Israel.

Chrissy sent me an email, outlining why she felt his next avenues are blocked off to her. For example, key persons are not returning her phone calls. With no seemingly obviously connection, she went on to outline the three things that she needs to do next. “What should she do?”, she asked me in frustration.

My response was brief. I showed Chrissy how she could ignore the setbacks, and just carry out those three tasks. What had happened was that she had linked her frustrations of the past to the next set of important tasks, probably in order to procrastinate. She was doubting her abilities.

The common theme of these stories is a message for those contemplating where or not to choose a business coach. This should be a person who has the ability to see beyond what is obvious to you. That talent does not necessarily come from taking exams, but usually emerges from years of hands-on experience.

Taking Israeli technology with you – where ever you travel

30 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Israel’s Ben Gurion airport, just outside Tel Aviv, always has the most fascinating of exhibitions. This month, they have posted a montage of about 40 pictures depicting the wonders of Israeli high-tech.

Let me explain. The exhibition always resides in the obligatory walkway connecting passport control to duty free. It is very difficult to miss. The aim is to take some extra or unusual about Israel with you to where ever you travel to in the world.

I guess the picture that made me wake up was the one about bats. Creepy. It is now about five years ago that researchers at the Hebrew University in Jerusalem began to comprehend how bats have their own internal GPS system.

Reading on, what struck me was the amazing range of capabilities that have emerged in recent years from a country that is 50% desert.

And so the pictures continued. One of the last images featured Professor Sarit Kraus. She is a very observant Jew, who has an outstanding reputation in the field of intelligent computer systems – robots to us mere mortals. And that is the point. Israel looks to ensure that all – whatever your religion, social standing or physical ability – are included in this attempt to go beyond what seems impossible.

And as a postscript: Once I arrived at my destination in the UK, I found a series of amazing tweets, showing how Israel tech has leaped across borders; motor industry, curing melanoma, harvesting drinking water from the air, and much more.

Time to stop Israel being a rogue state

25 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Four critical pieces of news this week about Israel have been hidden by more important events, such as the continuous banal spats between Hilary and Clinton.

  • Yehia is nearly two years old. Born in Afghanistan with chronic heart complaints, a desperate plea from his family was picked up in Israel. Despite the lack of diplomatic relations, the child and his family were brought over to Tel Aviv in order to save his life.
  • Yasmeen is a 6 year old Syrian girl, who suffered from blood cancer. She has just spent the past six months in a hospital in Haifa and she has been cured. Can you imagine the logistics required to have allowed her to pass through the border?
  • According to a paper published on August 22 in the journal Nature Cell Biology, Israeli scientists believe that they may have discovered the causes melanoma, a horrendous form of skin cancer. This is liable to prevent countless deaths, particularly in the hot regions of the Middle East.
  • And moving away from the field of medicine, we are beginning to understand that Israel has taken water technology to a completely new level. It has created the largest reverse-osmosis desalination plant in the world. Not bad for a country that is 50% desert. Jordan already benefits and others neighbours could follow?

It is difficult to find another country like Israel that engages in such a rich source of activity, which is going to help countless others in so many ways. Certainly, this does not apply to those countries at war with Israel.

And it is that thought that reminded me of a debating incident a couple of years ago. The motion called for the house to declare Israel a rogue state, assumedly because rogue has a negative context. True, but it also means somebody who is mischievous, looking for a means to go around obstacles. And it can also imply that somebody is on their own, not necessarily for their own fault.

The motion was carried, unanimously. Everybody realised just how it applied to the positive side of Israel. However, take this logic one step further, and link it to the amazing facts I described above.

There is a concept in Jewish philosophy, dating back to the Middle Ages: “Who is the greatest hero? One who turns an enemy into a friend.” The common theme that links the above case studies is one of helping people, and this includes those who see Israel as a foe.

Far fetched? For my last item, let me remind my readers of what happened last week in Glasgow. Celtic hosted the Israeli football champions Hapoel Beersheba, who were greeted by a wave a political insults and a wall of Palestinian flags. This incitement has been referred to the European footballing authorities.

The return match was played on Tuesday in Israel. After the game, in which Celtic just came through, Brendan Rogers, the manger was full of praise for his hosts. At a press conference, he detailed how his team had been welcomed warmly.

Is it not time that other countries in the Middle East realised that Israel no longer needs to be a rogue state? Because when that happens, everyone stands to gain big time.

Is there a liar in your meeting?

23 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

We try to do our very honest best and yet sometimes we realise that we have to deal with a liar. For many this is so off-putting. It is contra to all our ethics.

In my profession as a business mentor, possibly ironically, I frequently come across the phenomenon. When people are supposed to be open with me, they sit there with their arms folded. Their face reads: “I do not need help and I am going to say as little as possible”. Which begs the questions ‘what are you doing here in the first place, if you are so wonderful?

Another type of individual I meet is the manipulator. As I recently wrote, they try to convince you to say “yes”, when your response should be an outright “no”. They want you to believe that they have a perfect business model, when it is meaningless. They want you to change methodologies, when it is a short cut to nowhere.

I like a quote cited by Stuart Palmer. He was attending a seminar, which addressed the theme as to why the international media is often so unfair towards Israel. The participant observed that: “Just because something isn’t a lie does not mean that it isn’t deceptive. A liar knows that he is a liar, but one who speaks mere portions of truth in order to deceive is a craftsman of destruction.” 

And that is very true of what happens in meetings. The truth is used to cover up the lie.

Another way to consider the subject is that while lies can be creative, they are inevitably a sign of weakness. Mentally strong people constantly question “what and why” something is happening. What is the real reason for an event to take place. This gives them an empahtic edge over deceivers.

I suppose that what enlightened me to this theme in the first place was a tongue-in-cheek post that I received from my mother-in-law. It may be humourous, but it makes a point on behalf of the many many many good people around you.

What Makes 100%? What does it mean to give MORE than 100%?

Ever wonder about those people who say they are giving more than 100%? We have all been to those meetings where someone wants you to give over 100%. How about achieving 103%? What makes up 100% in life?  Here’s a little  mathematical formula that might help you answer these questions: 

If:  A B C D E F G H I J  K L M N O P Q R S T U V W X Y Z  is  represented as:  1 2 3 4 5 6 7 8 9 10 11 12 13 14  15 16 17 18 19 20 21 22 23 24 25 26. 

Then:   H-A-R-D-W-O-R-K  8+1+18+4+23+15+18+11 =  98% And   K-N-O-W-L-E-D-G-E   11+14+15+23+12+5+4+7+5 =  96%  

But A-T-T-I-T-U-D-E   1+20+20+9+20+21+4+5 =  100%   And,   B-U-L-L-S-H-I-T   2+21+12+12+19+8+9+20 =  103%  . AND, look how far ‘ass kissing’  will take you.  A-S-S-K-I-S-S-I-N-G   1+19+19+11+9+19+19+9+14+7  = 118% . 

So, one can conclude  with mathematical certainty, that while  Hard  work  and  Knowledge will get you close, and  Attitude  will get you there. Its  the Bullshit  and  Ass  Kissing that will put you over the  top. 

Now you know why Politicians are where they are! 

…..My conclusion? The next time you are in a meeting with somebody who may seem a bit suspicious, see if they add up correctly!

The BDS motorcade in Israel

20 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

BDS is an international movement, promoted by leading Palestinians, that advocates the boycott and divestment of all things Israeli.

This week, SAIPS, a 12 person start up from Israel, was sold for US$75m to Ford. The idea is utilise the Israel tech for a machine learning solution and incorporate it in Ford’s vision for autonomous cars by 2021. In other words, SAIPS technology will be found on roads in nearly 200 countries within a decade.

Naturally, this takeover  is a major repudiation for the BDS campaign. What is significant is that it is not its only failure in the auto sector. For example, five years ago, Mobileye was barely known outside its lab in Jerusalem. A few weeks ago, it released news of its latest partnership, featuring the combined power houses of BMW and Intel.

Israel’s financial newspaper, “Calcalist”, has highlighted at least five other Israeli companies in the motor industry whose innovation capabilities have been sought out by international conglomerates.

  • Nexar has raised over US10m to complete its development to allow smartphones to predict and thus to prevent accidents.
  • Argus has been around for only three years. Backed by US$30m and with offices in Tokyo and Michigan, it protects a car’s computer from being hacked.
  • Valens is primarily a chip maker. With partnerships with Daimler and GM, it provides the driver video info on how to make the car more efficient.
  • Anagog, founded in 2012 and now with 15 employees, has won international awards for its sophisticated parking app.
  • Innoviz has just completed a US$9m round to provide real-time mapping and navigation for vision systems in driverless cars .

The bottom line is that BDS cannot halt this motorcade of progress. Their own leaders will be driving such technologies in years, just as they already using Intel computers, Siemens’ products, Samsung hardware and much much more. Yup, Israel is host to all of these and hundreds more leading high-tech companies.

Which leaves you to wonder just what is the point of the BDS, which happens to be supported by leading anti-semites throughout the West. Funny thing is that Henry Ford was reported to have such tendencies.

Israeli economy continues to confuse the experts

19 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

It has emerged that the Israeli economy grew by nearly 3% in the first half of 2016. That means that all the gloom and gloom from earlier stats have been swept aside. In fact, this is one of the best performances in the whole of the OECD.

Moody’s liked the news and confirmed Israel’s A1 credit rating. And a week ago, S&P also commented favourably on Israel’s financial status. So it seems as if everything is moving along smoothly.

And now look again. The key element to this pattern of growth in 2016 so far has been a massive leap in private consumption – 9.5%. For example, new car sales are up 15% this year. However, all first year economic students learn that such a rush by individuals to their bank accounts does necessarily create long-term positive growth.

As for exports, a key part of the economic charge of recent years, the signs are worrying. The global market is reticent. The shekel remains high, especially in relation to key trading partners such as the UK. Intel and Teva, two dominant manufacturers in Israel, are undergoing planned restructuring, ensuring their exports are low comparatively.

My real concern is that what the stats tend to hide are internal structural weaknesses. For example, while politicians claim otherwise, there is no conclusive evidence that the housing market is slowing down.  The threat of a ‘bubble’ lingers on. Elsewhere, vested interest groups are ensuring that food imports remain restricted and forcing the consumer to accept bloated prices. Even government funds for start ups via the Office of the Chief Scientist have been partially reduced, arguably to pay for promises given to other ministers closer to the Prime Minister.

My own anecdotal evidence from clients in differing sectors is that there has been a pick up in recent months. However, for many it is just a partial rebound from a very difficult period stretching back at least 12 months.

My personal take on the situation is that the Israeli economy has ‘got away with it’ until now. Today, you just get the feeling that it is rudderless. As Bloomberg put it: “Israel’s economy roaring no more, even as it accelerates”. The question is will the Prime Minister care enough to support his Minister of Finance.

You and your small business – I dare you to value your time properly

16 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

My scope as a business coach and mentor in the Jerusalem area brings me into contact with a wide range of commercial operations. One theme that has come up a few times just recently is the issue of how to value time. And it ain’t that simple, especially if you are a small business.

Here are two case studies:

Let us call the client Barbara. Now Barbara has been providing a successful internet business for some years. Without a formal method or defined business model, the work has flowed in…that is until the flow of new clients dried up unexpectedly. Ouch! It is funny how in business people only turn to coaches in the bad times, where as in sport the opposite is true. I was duly summoned.

It became apparent that Barbara did not have enough time to spend on her commercial operations. Initially, she blamed the time she was required to spend at home. She really is a great, dedicated family woman.

However, further digging revealed that Barbara also likes spending her time helping others, day and night. People seek her out. They value her empathy and counsel. And she gives whole heartedly.

So, I challenged Barbara to limit the role of advice-giver to 30 minutes a day. Within a week, revenue was on the move upwards. And, interestingly enough, all those who needed to speak to her, still found a way to share their burden with Barbara.

In a separate case, David is setting up his business. The temptation is to charge low and haul the first set of customers through the door. This is an empirical formula, internationally accepted.

However, I challenged David to commit to how many work hours he wishes to invest in an average month of work. I then asked how much he wanted to bring home. And finally came the killer question: Of those hours, how many will truly be directed towards producing the service for the clients?

In other words, after all is said and done, how much time will David have to dedicate towards “working the customers”? In simple terms, if David wants US$200 a month and he only has one client for two hours, he has to charge US$100 per hour. Anything less, and he is not achieving his aims and may be making a loss.

Obvious? Yes, when written like this. So why do so many new businesses try to break the rule and thus end up with serious cash flow problems?

The punch line is that time is all around us, like air, yet seeming intangible. That is why many do not fully appreciate it…….at their commercial peril. Value your environment and that includes the time capsule in your very grasp.

What if “what if” is the wrong question to ask? A mentor’s perspective

10 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

I don’t think it is the unique atmosphere of Jerusalem, from where many of my clients operate. Nor is it specifically the type of people I encourage through business mentoring. However, every week I find myself entering into long discussions based on the question “what if”.

And more and more frequently I find myself thinking that this is the wrong attitude. The client is on the wrong flight path.

Now let me be clear. From an early age, we are taught to check ourselves and to verify potential scenarios. Rightly so. Just take an investment decision – whether or not to purchase a new appliance for the home or expensive machinery for the office. A wrong decision could be disastrous financially and logistically.

However, while ‘what if’ sounds correct, what many people do not consider is the actual probability of such usually negative scenarios. Are they really likely to happen?

For example: What if the washing machine does not perform, as the reports tell us? What if the machinery does not reach reasonable output levels? What if it rains during the Mediterranean summer? Yes, it could happen, but is this likely? No. So why ask the question in the first place?

The answer is that the ‘what if’ game has become a politically correct commercial form of procrastination. People use it, when they are afraid to make a true decision. If they move on, they will have to commit to a project, requiring time, money and effort. For many, that can be scary.

Is there a way out of the ‘what if’ merry-go-round? Sometimes, I throw the question back at the client, encouraging them to answer their own misplaced question. Alternatively, I give a blank stare, forcing them to consider what they have just said. And on rare occasions, I develop the negative possibilities to a very ridiculous degree, at which point the client graciously asks me to back down.

Learning to ask pertinent questions at the right time is not an easy process, as we all know. Coping with hidden fears, which hold us back in commerce, is no less tricky. Reassessing the correct application of ‘what if’ is a big step in the right  direction

Israeli society and UK lawmakers – spot the differences

9 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

A British JP, Joy Wolfe (who I know) yesterday wrote on her Facebook page that:

I am deeply disturbed by the growing evidence of virulent antisemitism at the top level of the Labour Party. The latest examples come from members of the Shadow Cabinet and are frankly mind blowing and would seem more at home in Nazi Germany that multicultural Britain.

Communities spokesman Grahame Morris wants British Jews who serve in the Israeli defence force to be treated as suspected terrorists.

And Justice spokesman Richard Burgon has urged MPs and party members to quit the Labour Friends of Israel group, declaring: “Zionism is the enemy of peace.

I suppose that in trying to support the Palestinians at any price, such comments may appear justifiable to the socialist politicians. There again, I fail to find any statements from them regarding the 3,000+ Palestinians killed in Syria since 2011. Thus, clearly, the hate contained in their words is directed solely against Israel and its citizens.

So let us spend two minutes and look at some recent developments in Israeli society – three quick ‘did-you-knows’ and a bonus package for the MPs themselves.

  • Did you know that the Israeli army has 18,000 thousand volunteers? And did you know that approximately 25% of them – about 4,500 – come from Arab communities (Muslim or Christian)? For the record, the numbers of Arabs in the army continues to grow every year.
  • Did you know that in the aftermath of a fatal terrorist incident last month in the West Bank, one the first people on the scene to help was Dr Ali Abu Shareh. Now this is man, who assumedly rejects the concept of Jews living in places like Hebron and the West Bank. Yet he rightly and proudly placed humanity before politics. He tried to save lives. Ironically, Dr Shareh has since been fired from his job by his Palestinian superiors. Coincidence? Whatever – it has been left to the Jews of Hebron to help him find new employment.
  • Did you know that Check Point, an Israeli company and a global leader in the fight against software fraud, has just discovered mega security flaws in 900 million android devices around the globe. I could cynically imagine that our intrepid MPs would prefer the bugs to remain in place rather than benefit from technology emanating from such a wicked country, ‘the enemy of peace’.

But here’s the crunch issue for the esteemed reps of the British people. It is now horrendously apparent that large chunks of British aid for the Palestinian people have been diverted towards the private bank accounts of their leaders – I suppose that technically they too are a part of the ‘people’ – or towards means of war against Israeli civilians. The trouble is that these monies come from the pockets of British taxpayers. They could have been used more effectively by true sufferers in other regions.

In other words, basic democratic principles of accountability and transparency have been flouted in the name of hatred. I can but presume that this is what Joy Wolfe is so rightly concerned about. It is the kind of ‘politically correct’ deceit that was used by Mosley in the 1930s.

It is the language that was rejected by one of the great democratic socialists of all eras, George Orwell, who described it as the defence of the indefensible. Shame upon them and their supporters.

Why procrastinators love eating red herrings

4 August 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I love my profession. A business coach and mentor, primarily in the Jerusalem region, I have the opportunity to meet so many varied and interesting businesses and their teams.

As I have written before, one of the subjects that comes up with great regularity is procrastination. It is amazing how many people I meet who claim to be the best ‘putter offer’ in the world.

There are so many blogs explaining how to ‘cure’ or get over the problem. Here’s one from the Harvard Business Review earlier this week.

….next time you find yourself mystified by your inability to get important tasks done, be kind to yourself. Recognize that your brain needs help if it’s going to be less short-sighted. Try taking at least one step to make the benefits of action loom larger, and one to make the costs of action feel smaller. 

Not bad. However, for my clients the problem is often much deeper. They are full of seemingly genuine excuses – a.k.a politically correct language – why they do not have to do whatever by whenever.

An equivalent for politically correct in this case is “red herring”. We all understand what the phrase means, but few actually know what a red herring physically is. And the answer?…………….A red herring does not exist! There is no such fish.

In contrast. look at these two brief case studies in the world of procrastinators:

  1. One of my clients this week claimed that she could not move ahead in the company, because she did not have the correct qualifications. How did she know, I asked her. “Well, it’s obvious”, came the reply. And despite pushing, she could not supply any proof to her statement. She repeated the mantra.
  2. In another recent situation, the client insisted that their work day had to be structured in a set manner, because that is what others around them wanted and needed. When I asked, how they knew that, their only response was one of digging in their heels. “That is the way it has always been”.

My point? People place red herrings in their lives for a reason, usually totally unrelated to the immediate subject in play. It is seemingly that bad that they are prepared to place in jeopardy future progress rather than handle the issue. The core problem may be something much deeper.

In other words, they will eat a ton of red herrings – a.k.a. hot air – rather than do something constructive.

By the way and with some irony, you can create a red herring by smoking fish, which is probably what should happen to the preconceived notions that we all walk around with.

Israeli high-tech exports, and the defense industry

29 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Everybody knows that Israeli exports are driven by the high-tech sector. For years, Jaffa oranges have not been the commercial flavour of the month, having been replaced by the tasty riches of Intel and other multinationals based in Israel.

Within the tech hype, there is one sector that tries to keep under the radar – pun intended – and that is the defense industry. The issue came to light this week in a discussion over the 2017 budget. The Treasury is trying to up its level of control on export licenses for armaments.

In turn, the “Calcalist” newspaper ran a review of defense companies, and the numbers are fascinating.

In 2015, around US$5.7 billion of contracts were signed. This is about 10% off the average for the past decade, although a little improved on 2014. The peak was US$7.4 billion in both 2009 and 2010.

And the destination of these sales? This really surprised me. 53% are Asian and Australasian based clients. The rest is spread fairly evenly around Europe, USA and other regions. In total, these numbers represent about 10% of Israel’s annual exports.

What is the real cherry on the cake? A few days ago, the extent of Israel’s participation in the Rio Olympics was made public. Aside from a delegation of nearly 50 athletes, dozens of companies from the Holy Land have won contracts to protect the event – from the air, sea, cyber space and more.

It is estimated that about 10,000 Brazilian security service personnel have been trained by Israelis over the past couple of years. The total financial commitment is about US$2.5 billion, according to an item on Israel Channel 2 TV station.

What next? I am not an expert in this sector. Israel’s political enemies would rather boycott these capabilities and risk the consequences. However, can you imagine how unsafe we all would be without this contribution from factories in Haifa or start ups in Herzylia? Frightening!

Biotech industry in Israel – real progress

22 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

The biotech industry in Israel seems to be finding its feet.

A week ago, “The Calcalist” – The Economist in English – daily financial paper reported on a new round of investments in the sector.

  • Bonus Biogroup completed an 18 million shekel (approx US$4.7m) sale of shares, ahead of its offer in the USA.
  • VBL, already present on NASDAQ, took in US$24m in order to boost its search for creating drugs against cancer.
  • Micromedic’s shares shot up 140% ahead of an announcement relating the success of its diagnostic kit for cancer.
  • Kitov raised US$12m on results that show its main product is highly effective in combatting arthritis.

These are not isolated pieces of news. At the end of June 2016, the Israel Biotech Fund (IBF) made its first move, selecting cancer drug developer “Vidac” as its first partner. IBF has a US$100m treasure chest to spend, supported by American giant Biogen, Medison, and others.

On a micro level, BioJerusalem and JBNF-Bio have had major success in recent years partnering local start ups with multinationals. The latter recently held a meet up with nearly 100 participants on how to create a start up. The bug of entrepreneurship is still mutating with vigour.

At a time when much of Israel’s economy is facing a slowdown, it is refreshing to observe how biotech in the Holy Land is bucking the trend.

Palestinian economy: The fifth “giveaway”

17 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Last week’s blog on “4 takeaways of the Palestinian economy” highlighted how so much money seeps into Gaza and the West Bank. Yet so little is accountable and so much seems to escape the notice of Western donors.

As one person commented that rather than ‘takeaways’, this is a policy of “giveaways”! And thus on that note, I would like to apply one more comment to this huge generosity from Western taxpayers.

 Alex Fishman wrote a detailed commentary this weekend on the continuing tension between Gaza and Israel. While the government of Jerusalem is investing billions in new tech to prevent tunnels reaching its territory, Hamas has upped the level of digging and shoveling beyond anything previously known. 50 or so terrorists – captured, or those that gave themselves up – have spilt the beans on what is being dug, where, by whom and how.

But let me concentrate on the financials and stats that Fishman alluded to:

  • To date, in 2016, it is estimated that Hamas has channeled up to 300 million nis towards the tunnels. (About US80 m)
  • Approximately 20% of the Hamas budget is allocated to military needs.
  • Despite Egyptian efforts, Hamas still has around 10 or so tunnels pointing in the direction of Cairo. (It is worth recalling, Egypt is furious that ISIS operators in Sinai receive regular support from Hamas, including escape routes and medical treatment.)
  • The tunnel creation is a 24/7 project that has already cost at least 20 lives this year alone.
  • Roughly 5,000 Hamas militia are being trained for ‘tunnel warfare’, more than double the total available in 2014.

Now Fishman did not offer any directs sources to substantiate these facts. However, I think it reasonable to state that Hamas are up to no good. These tunnels are designed to cause injury and destruction.

So, where does the concrete come from? Lorries enter from Israel, ostensibly with raw materials for new homes. Oh come off it!!! No wonder, UNWRA complains that home building is behind schedule.

And where does the financing come from? Strange how that question never seems to be asked in European Parliaments………..even if these same governments give hundreds of millions directly and indirectly every year to Gaza and to the West Bank?

The unreported Palestinian economy: 4 takeaways

15 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

The default reporting mechanism for the Palestinian economy is that it is bust and that is mainly due to Israeli oppression.

The facts that Ramallah and Gaza and surrounds are today replete with shopping centres or that the economy leapt forward when under full Israeli control up to 1999 seem to be irrelevant. So I briefly want to take a quick survey of anecdotal evidence as to what is happening.

Ostensibly, the answer is nothing. The Ma’an News Agency in Ramallah has not updated its economic section in English for over two months. Moving beyond this bizarre situation, I found out that:

1) Certainly, the EU continues to pour in hundreds of millions of Euros on behalf of the Palestinians. It justifies this on the grounds that the money stops a complete collapse of the two-state economy. The strange thing is that the donors from the Arab states are still around US$1 billion short in meeting their commitments, and show little real to pick up the slack.

This does beg the question why the oil-rich nations revoke on their financial pledges to the leadership of Abbas and Hamas? What do they know?

2) That the Palestinian economy is in dire straights is not an argument. It is a fact. The perennial question is where does all the aid go to?

It is significant that even the British newspaper, the Guardian, considered one of the most hostile to Israel for two decades now accepts that:

About 6 percent of the Palestinian budget is diverted to prisoner salaries. All this money comes from so-called ‘donor countries’ such as the United States, Great Britain, Norway, and Denmark.

Thus, by one calculation: “The Palestinian Authority is paying them (prisoners) up to £1,957 a month – more than the average salary of a UK worker.” Absolutely stunning!

Why the complete lack of accountability? Why does UNWRA, what I describe as the largest charity in the world, have no external auditor? Why is so much of taxpayers’ money poured into bottomless pot, yet relatively little is spent elsewhere?

3) The blog of Haifa Diary picked up on a small yet significant news item. The Israeli security services arrested a small-time Palestinian smuggler. No big deal, except that he was carrying thousands of dollars intended to fund Hamas terrorism in the West Bank.

So what is it? The average Palestinian does not need the cash, or their livelihood is just irrelevant for their leaders in this incessant game of hatred?

4) And if we are talking of illegal trade, did you hear about the illegal spare automotive parts, which were nearly smuggled into Gaza? No? Silence in your media?

Well, I bet you did not hear about all of these stories? And maybe it is time to ask why?

A classic case study in ‘how not to make a pitch’

14 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Yesterday, I was very excited to attend a seminar in Tel Aviv on the adtech industry in Israel. Here was an excellent opportunity to learn more about native advertising and the contribution of the Holy Land start ups to the global community in the field of video.

From the pre networking, it was obvious that the place was full of people and company reps with great talents, directing live content in ways thought impossible just a few years ago. And yet, much of the talk and the discussion forced me to slip into my role of business coach and mentor. Here’s why

  1. After a brief intro from the hosts, the first speaker was forced to halt in mid track after 45 seconds. The microphone failed. The fault was quickly fixed. However, once back on his feet, our maestro promptly said that he would not repeat himself, “because it was not that important.”      You mean that I and hundreds others are about to sit here and waste our time on you listening to you? Amazing kick off!
  2. There then followed a panel discussion. OK. But nobody introduced the participants and what gave them the right to be on stage in the first place. So, initially, their comments came over very disjointed.
  3. Few of the speakers throughout the evening appeared to appreciate or even consider the make up of the audience. You could tell, just by looking around and counting those in the audience playing with their mobiles during the presentations.
  4. And then there were the pitchesrom the start ups, each given just a few minutes to state why their technology is so ‘wow’. I watched as at least two presenters spent half their time explaining what they are not. What a waste of an opportunity.

And in contrast? Over the past few days, clients of mine have made pitches for funding.

  • The founder of a start up originally complained to me that he could not explain what he does in less than two minutes. That came down to 15 seconds. They have since received the first level of approval.
  • In parallel, a Jerusalem company has created a one page executive summary that sets out concisely their progress over the years and the proposed business model. No need at this stage for a 20 page business plan. They are hopeful to receive an injection of cash to fund future development.

To be honest, one pitch did catch my eye. Within 30 seconds I had understood what is so special about VocalReferences, as laid out by cofounder David Wenner.

I ended up leaving the conference early. Before doing so, I looked around the audience. I wondered how many investors and business accelerators were present in the room and how under whelmed they had been left. A golden opportunity for many so sadly underused.

Look whose money is invested in the Palestinian economy – 3 takeaways

8 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

For decades, we have heard that the Palestinians do not have any money. We know that their brothers in the Arab League do not readily convert financial promises into actual deliveries. Despite that, Palestinians mange to build extravagant tunnels and shopping centres.

So who is paying for the development of the Hamas regime in Gaza or the perpetuation of the Abbas empire in Ramallah? Consider these three anecdotes that shows what happens on the quiet to the earnings of Western taxpayers.

First, the generosity of the UK knows few limits. It was revealed in the Parliament of Westminster on July 4th by the minister for the DFID, the Department for International Development that: –

DFID provided almost £157 million to the Occupied Palestinian Territories (OPTs) between 2014/15 and 2015/16 to help build Palestinian institutions, deliver basic services and promote economic development. DFID has either met or exceeded the majority of its targets for programmes in the OPTs.

DFID supported over 390 companies to improve their operations and increase competitiveness. In each of the two years, through UNRWA support, over 26,000 families received social transfers (either food or cash) and almost 45,000 children were provided basic education. Furthermore, over 1.6 million medical consultations were provided over the two years.

In addition to this support, the UK provided more than £17m in immediate humanitarian assistance for those affected by the Gaza conflict in the summer of 2014. Non-food Item (NFI) packages were provided for 23,400 families covering their needs for three months.

Very noble. And this does not mention contributions to the EU for Palestinian-specific projects.

So, turning to Brussels, there is no doubt that the EU can be incredibly supportive. It recently contributed 10 million Euros towards a much needed desalination plant in Gaza. Officially, the EU contributes around 170 million Euros annually to the Palestinians. This does not include the hundreds of millions, which find their way to UNRWA. Could this be one of the reasons that the British voted to opt out of Europe?

And finally, some may say ironically, there is the support and training provided by Israel. Yes, the government in Jerusalem is not immune to what happens in the West Bank and in Gaza. One prominent expression of this can be found in the agricultural sector, where two sides met up regularly.  In fact is staggering just how much Israel gives to the Palestinians via business centres, education, medical assistance and much more.  This must be worth tens of millions of dollars in any given year.

This week, a flotilla of aid from Turkey arrived in Israel. The goods are to be transferred under supervision to Gaza. This act of charity may save face for the Turkish regime, but it is not what the Palestinians necessarily need not will it directly help the overall cause of peace.

It is time to change the narrative. The Palestinians do have money – not a lot, but it is right there. They do need more investment, not in its leadership but directly in the people. And as the UK Parliament is beginning to understand, the monitoring of these donations has to become transparent and accountable, which simply is not what happens today.

Israel’s economy: Connecting the dots in July 2016

6 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Just look at these headlines from today’s financial news in Israel.

  1. The number of new cars being delivered in Israel just keeps on rising.
  2. The price of housing is expected to to climb even further for the predictable future.
  3. The trend for 2016 reveals a drop in the number of high-tech exists.
  4. Following on from the fall off in growth in 2015, the Bank of Israel has pegged back its updated forecast for 2016

Can you start to connect the dots?

If not, let me give you another clue. Whilst consuming spending is holding up in specific sectors and while key parts of the economy are not performing, I have yet to read about one significant move by the Israeli government to bolster the country’s economy.

Let me just check that. Oops, I made a mistake. The government has recently approved six extra days leave for the whole economy! But this sort of proves my point – all play and no work often leads to disaster, no?

A ‘Spiritual Response’ from British Isles to Israel’s economy

1 July 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Thursday 30th June 2016 represented a day of mixed feelings for Israel

Early in the day, a Palestinian entered the home of an Israeli family and slew a 13 year old girl in her sleep. A few hours later, there was another stabbing incident on the costal city of Netanya.

While that was going on, the British Labour Party released its report on anti-Semitism in its ranks. Led by Sami Chakrabarti, it concluded that “too much clear evidence of minority hateful or ignorant attitudes” amongst members. Fair enough. However, party leader, Jeremy Corbyn, when commenting about the findings, made his central point the equivalence of Israel with ISIS!

While wondering if Corbyn realises (or cares) that Jews pray in the direction of Zion in Jerusalem, it did not take long for the leaders of the   Jewish community to dismiss outright such a statement. Yet if Corbyn’s language was not vile enough, his apparent supporters were caught on camera uttering further anti-Semitic remarks…… and never a mention of a few words for the wretched family, whose daughter had just been stabbed to death ‘in the name of peace’.

In total contrast, a few hours later, I was on my way to take part in the 3rd Tel Aviv Whisky Live event. Thousands attended, of every creed and colour. And arguably the most popular stands were those with reps – whisky ambassadors – from the distilleries from the British Isles.

For example, Tomintoul had an excellent display, and I admit to being pleased with my tasting their 12 year old malt. What I found particularly interesting was their understanding of the kosher laws regarding this very special drink, an issue that most seem very obscure to the Speyside team. Similarly, I was delighted to learn about Teelings single malt, whose base is in the heart of Dublin, Eire. And to be honest, I left with a very healthy looking bottle of heavily peated Jura.

The point is that these companies and their competitors and fully engaged now in the Israeli market. They look beyond the hypocrisies and misjudgments of people like Corbyn and fellow politically correct animals – who would advocate people to boycott such an event.

Spiritually, and in more ways than one, the distilleries are simply working with the Jewish nation, treating the local populace just like any other country. Which raises the question as to what sinister issue is preventing Monsieur Corbyn from doing the same?

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