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How Israel’s hightech still attracts world leaders

21 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Yesterday, I attended the Israel Innovation Conference in Tel Aviv. One of the most impressive aspects of the day was the plethora of international delegations. And what are they looking for?

Well, the Chinese Vice Premier signed a formal agreement, enhancing r&d cooperation between the two countries. I spent two hours at a networking meeting with 20+ people from Hong Kong. Their message is simple – Hong Kong needs to buy into Israel’s concept of entrepreneurship. And tonight, I intend to mingle with the Aussies, a combination of investment specialists and high-tech experts, whose stated aim is to learn about Israel’s successful eco-system.

The conference features a fascinating range of new technologies and products. Just to give two quick ‘tasters’:

  • INDI has developed a non-diary formula for infants, which resolves 99% of all problems related to cow’s milk. No website, and yet they are about to commence trials
  • CellBuddy is a consumer’s dream. Based on a novel SIM card, the company allows you to choose your own mobile carrier. The product is due for launch later this summer, threatening the high prices of many carriers around the globe.

The point is that these visitors are following in the footsteps of many other international leaders of commerce. And again there are a couple of examples of such investments in this morning’s newspaper. “Alcatel-Lucent (ALU) plans to open a Bell Labs research center outside Tel Aviv to help the French network-equipment maker advance in cloud technology”. And Bell has been applying its knowledge since 1925. In parallel, Samsung intends to extend its operations in Israel, by opening a ‘center for excellence’ for health / bio technologies.

The lesson is simple. Israel has created has successful model for embracing new technologies. However, the mandarins in Jerusalem must be aware that there are others who are watching, learning and looking to improve on that same concept. That too is a form of innovation.

What is Israel’s global role in technology development?

17 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Jeff Pulver is a serial entrepreneur. He has been travelling to Israel for decades, promoting, investing in and encouraging the country’s technology. In an extensive interview, he questions whether the world has still to fully appreciate the extent of the Holy Land’s contribution to the high-tech / cleantech / nanotech / biotech / mobile revolutions.

The discussion is timely. This coming week in Tel Aviv, thousands of overseas delegates will converge on the Mixiii Innovation Conference, a celebration of nearly everything that Israel has to offer in these fields.

Israel loves to see itself as a direct equivalent to Silicon Valley. Waze and ReWalk are just two of dozens of Israeli companies changing the lives of people around the globe. Eric Schmidt, the CEO of Google, recently considered that the next Google could well emerge from Israel.

If I had to choose two examples of what Israeli brawn is contributing to the global economy, I would start with Innovation Africa. This is a stunning project, which is able to introduce Israeli water and irrigation projects to some of the poorest yet most populated areas in the world. Second, and at the other end of the spectrum, is SCiO. This minute device is able to assess in a few seconds the sweetness of a fruit, how much fat is in a lump of cheese and even if your Viagra tablet is a fake.

Pulver may be right. Maybe the business leaders of the world have yet to comprehend how a country the size of Wales is able to produce such a wealth of brilliant concepts. That said, those who turn up at Mixiii in Tel Aviv are going to have a ball.

The key issue effecting small business owners is…..

15 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

What most troubles the owners of small businesses?

In my experience as a business mentor, I often come across troubled business owners, suffering from the inability to create a reliable cash flow that outlines the trouble spots ahead.

The reason I raise the question is because this was the point of discussion at a recent conference of experts in Israel. The responses were numerous, including: –

  • Regulation and bureaucracy
  • Suppliers, who try to rip you off because you have little leverage
  • The supposed need to offer a low price in order to break into the market
  • Lack of bank credit

There is no doubt that these factors are often present. And the list is much longer than I have summarized. However, I am skeptical. They come from bankers or local leaders of commerce, most of whom have never set up their own business, from scratch and with minimal resources. I do not believe that they have reached the core of the problem.

If I had to put my finger on one subject that encompasses all of these things, it is the subject of time management. People find that they do not have enough hours in the day to complete all the main tasks – prepare a financial plan, call new customers, deal with existing customers. meet with an important supplier, and then smile as they take out their spouse for a birthday treat.

When I sit down to coach my clients, it was almost inevitable that I will begin to explain to them sooner rather than later that in an average work day, there are rarely more than 10 hours of execution time. If you plan for otherwise, the reality is that you are lying to yourself. It’s Pinocchio time.

And the solution. Be honest. Be realistic. Adjust your expectations and find people to delegate to. You cannot beat the clock that has been ticking successfully, despite the efforts of mankind, for thousands of years.

Who rates Israel’s economy?

11 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

For almost a year, Israel’s economy has been rated by Standard & Poor as “A+”.  “Israel’s fiscal consolidation is on track, economic growth is steady, and that the debt-to-GDP ratio has fallen.” So what?

I was reading an interview with Moritz Kramer, S&P’s Chief Sovereign Rating’s Officer. He made three very simple points.

First, of the 23 rankings that S&P provide, A+ is the fifth highest. That means that Israel’s credit rating is extremely strong and thus enables the country to raise money more efficiently on the international financial markets.

Second, compare this position to 2007, less than a decade ago. Then, Israel was bottom of the Mediterranean club. Today, the country’s ranking is second only to that of France.

Third, and possibly most important for Kramer, Israel moves ahead by learning from past mistakes. For example, Israel’s banks largely avoided the credit crunch crisis of 2008. They had been through a bad experience two decades previously and had installed better practices.

Where next? Simple. Do not surrender these achievements in to the hands of politicians and interest groups. Now there is an interesting challenge for the Prime Minister.

Managing directors and CEOs – not just an issue about leadership

9 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

The internet is flooded with articles about how MDs and CEOs should operate. It is not just about management. They need to be seen to be leading, inspiring, motivating – ensuring that others follow where they boldly tread to go.

My experiences this week reminded me that there is another competence test that these senior execs face. In fact, if you were to map their required skills, this element would come before the need to demonstrate qualities of leadership. Here’s what I mean.

I am mentoring a CEO in the Israeli high-tech sector,  who had been in the process of revamping her strategy. The process compelled her to evaluate the impact of the changes on existing human resources’ set up. In turn, this resulted in some difficult decisions vis-a-vis releasing specific individuals. All that remained was to verify the conclusions and then decide the hows and whens.

While this was evolving, it emerged that one of the candidates for dismissal had acted in an inappropriately over a contract. Madam CEO was outraged. What should be said and done?

After much private consultation, the subject of the contract was barely mentioned. Why? Because the CEO realised that what was core was the future direction of the company. It had already been decided who this did and did not included.

The subject of the contract was a sorrowful diversion. While it strengthen the CEO’s resolve, it did not derail her from what she had originally planned to say to her worker.

Her internal feelings remained in second place, deferring to a professional and commercial approach. This allowed her to remain professional throughout. In other words, the CEO made sure that she had identified the key issue, before acting and before going out to explain her decision later-on to other senior players in the company. And that is a sign of a strong company leader.

An indepenedent economy? 66 year case study and counting

6 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

All countries dream of being economically independent. Actually, it is an illusion. The fact that all countries trade, even North Korea, means that we all need each other.

Now consider the strange case of Israel’s economy, which was officially established 66 years ago in May 1948. The moment independence was declared, several Arab states and auxiliary armies invaded. Not a great start. Jump forward to 1986 and several wars in between, the economy was defunct – hyperinflation, tariffs protecting inefficient local industries, unemployment and more.

Today? Well, the country is no longer dependent on exports to Europe and to America. In stark contrast to established geo-political norms, Israel is seeking to become an exporter of fossil energy like gas. Hichtech – mobile, internet, cleanteach, biotech, nanotech, etc – remains the main drive of economic growth.

tech sector is very much based on local brawn and overseas investor capital. It is a basis for mutual discovery. Take two announcements from this week alone.

Intel’s first overseas presence outside America was Israel. There are currently three massive r&d plants in the Holy Land. They employ close to 10,000 workers and generate around US$4.0 billion annually in revenue. The company has just agreed to invest a further US$ 6 billion in their operations in Israel. That mean millions of more satisfied customers around the world.

Google already has executed five separate investment decisions in Israel. It runs and r&d centre near Tel Aviv. It even has created a special logo for web browsers during Israel’s Day of Independence.  In the past few months, Chairman of the board, Eric Schmidt. has reiterated his belief that “Israel has the most important high-tech centre in the world after the US.”

Schmidt’s own personal fund, Innovation Endeavors, has already taken a position in 14 Israeli start ups. In an interview published in Hebrew, he has pledged to up that commitment over the coming year.

There are those who take the position that Israel should be boycotted. If you consider the impact of Israel on the global society via these two commercial monsters alone, you immediately begin to understand why this argument is not just impossible but is hypocritical as well as downright odious.

It is fascinating to see just how Israel’s economy since 1948 has progressed, both internally and as an important element in creating wealth for the rest of the world.

6 practical tips from a serial Israeli entrepreneur

2 May 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Israel is often considered as the ideal “start up nation“. One of the characters that represents that picture is Bob Rosenschein. Originally from Pennsylvania, he founded his first software company in 1988, when Israel was still recovering from nearly a decade of hyperinflation and recession.

In his time, Bob has consulted to Microsoft and sold a company to Microsoft. Depending on how you count, he has launched at least three successful internet / software companies over the years. In 2009, he was named Entrepreneur of the Year by Ernst and Young. So what makes him tick?

This week Bob gave a beautiful yet sophisticated presentation to the Jerusalem Business Networking Forum. His gentle humour helped to illustrate 6 salient points to a packed auditorium.

NETWORKING: We are given opportunities to meet new people almost every day. Recognise them and use them. Understand why each person is unique and can potentially help you, today or tomorrow.

LOVE YOUR PRODUCT: It is a tough world out there with people throwing all kinds of stumbling blocks in your way. Know what you can do, and find a way that every different audience can appreciate its value.

FOCUS: Understand early on the true core activity of your product, and this means you should not be afraid to challenge the experts.

SELF PITY IS OUT: Never feel sorry for yourself. It is a path to nowhere.

SELF BELIEF: Whatever happens, remember that you can and will change the world

For me, the most useful point was something that emerged in the Q&A session towards the end of the event. It emerged that staff turnover at each company had been very low. Evidently, he paid well (most of the time). As expected, the environment were positive and creative.

However, what really made the difference for Bob was that anybody who was “mean” did not last long in his little empires. Effectively what he was saying was that this human fundamental took away the benefits from each of the five values listed above. To create a pun: It would appear that he was able to build mean teams that were not mean.

For the past three years, Bob Rosenschein’s efforts have been concentrated at Curiyo. “A browser app that brings you everything you need to know from top publishers, social networks and blogger” is clearly set to be his latest contribution to successful software enterprises in Jerusalem.

Do small organisations need a business mentor? Welcome the Jerusalem Syndrome

30 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Two commercial set ups, both employing fewer than 10 people.

Client number one tells me that he is too busy to see me, because he has to deal with a severe drop in sale in his shops. Client number two says he is too confused to meet me, as he wants to work out why his main customer will not pay him properly.

Hey guys! Remember my expertise? I am your business mentor and coach. I can show you how to look for the answers and how to handle them.

The above outlines refer to actual scenarios that I have faced recently. I was thinking about them, when talking today to my ‘mentoring guru’, a Jerusalem taxi driver. Portly to say the least and having exhausted his explanation of the delights of his new Mercedes, he asked me what I do for a living.

When I responded by describing that I meet with all kinds of clients in multiple sectors and at different stages of commercial development, he asked me how I knew about so many industries. I corrected him. My real ability lies in spotting strengths and weaknesses, ensuring that the person in charge then acts accordingly and thus moves forward towards their commercial dream.

In other words, business mentors and coaches help others create added value within their own business, no matter how early stage or developed they are, small or large. Here are three case studies from firms I have worked with in the Jerusalem area.

A) Some years ago, I was mentoring a young couple who had returned from a long stay abroad, intending to set up a service company. They were keen, smart, dedicated, skillful, but were the first to admit that they knew very little about running a business Equally, I knew nothing about their field, yet we diligently went through the motions of talking about budgets, cash flow, marketing, team building and more. The progress appeared slow and eventually we agreed to part ways.

We kept in touch and I was fascinated to hear I they referred back to techniques I had taught. Today, they have an office in the centre of the city, employing four additional members of staff.

B) Josh was looking to set up an art studio. A dream of his youth, he was prepared to put in his life savings to make the project succeed. Sites were examined, budgets prepared, and plans were designed. However, when faced with my probing questions how all this was to convert into revenue, the sums never added up.

Josh found himself rethinking, which allowed himself to curtail his financial exposure. He has developed an approach, which is smaller in scale, but allows more revenue much quicker.

C) David has a large shop, open for nearly a decade. Each year, he has progressed, against all odds. However, last year, without realizing it, he lost control of the cash flow, and thus he has been fighting banks ever since.

Initially skeptical and after careful joint evaluation, David invested heavily in advertising an end-of-season sale. Contrary to national trends, David’s shop recorded bumper results. The campaign is now being extended.

The conclusion? No doubt about it. These small business owners took a calculated risk. They were the ones to think things through. They did the work to ensure a smooth operation. And fortunately, they were supported by an experienced business coach.

Israel’s economy – that ‘Thunderbirds’ edge again

25 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Thunderbirds was a wonderful action puppet TV series in the 1960s. Although the Tracy family lived on a secluded and sleepy desert island, at a moment’s notice they would launch amazing vehicles that out of nowhere would zoom off to save the world.

Back to the boring reality of 2014 and the Israeli economy had been expected to plod along for the next year or two, barely reaching 3% growth. In comparison to the triumphs of the past decade and the growing population, 3% is no big deal. Amidst all this blandness and partially obscured by the latest histrionics of a deal with the Palestinians, it seems that the Israeli economy has taken off.

As the Ha’aretz newspaper recalled this week, the “Israeli economy is on a surprising upswing”. And this is no short-term spurt. Roger Cohen, writing in the New York Times, described this growth as “sustainable”.

Is this surprising? Over the past month, top economists have described Israel’s fiscal set up as “resilient“, viewing the country as a whole in the “high income” bracket. Complimentary, even I would not be so effusive. The spread of wealth still leaves much to be desired.

The fact of the matter is that the labour market has not imploded as had been predicted some months back. New trading routes have been discovered, as Asia in 2013 became a more important export market than the USA! And of course, Israel coffers are benefitting from the tax revenues of the new off-shore gas industry.

As pleasing as these news items are, where the government of Jerusalem really needs to strike a home run is in the field of structural reforms. The ports need to be privatized. Rail lines are waited for anxiously. The housing market is still too rigid. And so the list goes on.

Meanwhile, just as the Tracy team quietly go about their work, it would seem that the financial mandarins in the Holy Land can also be satisfied their accomplishments.

 

Digital advertising – the mix from the Holy Land

20 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

It started with  internet tech, Moved into biotech, cleantech, and nanotech. Now it is the age of digital advertising. Whatever the latest blip in this third industrial revolution, Israeli brawn and chutzpah is there to be found.

For example, we know that “Israel-based digital platform specialist ironSource has announced that in the two months since its launch in February of this year Stickeez, which uses the company’s mobileCore native ad format, has boosted developer ad revenues by 20 percent.

And back at the beginning of the winter, Bob Dylan’s updated video of ‘ Like A Rolling Stone’ was a viral hit. It was “produced by (Israeli) media start-up Interlude, includes a novel interactive channel-tuning button, each channel mimicking a different cable channel or news program.”

Even though Matomy’s IPO launch in London for  US$100m has been cancelled, the trends are there to be seen. Digital advertising, as powered through smartphones is the ‘in-thing’ and Israeli tech is right amongst the mix.

An interesting article in the Hebrew paper, “the Calcalist” (The Economist) listed 10 start-ups, each targeting a niche in this market. Typically, they have been operating for around 24 months, employing 15 or so people. I invite you to check out the websites of Dynamic Yield, youAPPi, Ongage, AppsFlyer and others.

One that has caught my eye is Carambola, named after a fruit in the shape of a star fish. Their ads operate like advanced versions of layovers and in-video popup ads that appear on YouTube videos. I was also interested in Roojoom, which are taking presentations way beyond the regular Microsoft format. And of course, there is Widdit that was established ‘as long ago as’ 2007 and whose products can be found amongst 60 million users globally.

As the day of the paid-for app is drawing to an end, advertising is becoming a key feature in the smartphone market. Ensuring people look at and then click on the ads is already an important part of world commerce. Holy Land tech is helping to convert that miracle into a reality.

From rags (literally) to riches – case study to launch on London’s AIM market

18 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Suits maker Bagir Group Ltd. raised $33 million at a company value of $66 million, after money, in its IPO on London’s Alternative Investment Market (AIM)

What is so special about this announcement of a small-time Israeli textile company, which uses cheap overseas labour (including Egyptian)? After all, the AIM market is coming back into fashion, and dozens of Israeli firms had raised money there prior to 2008.

Take two steps back. First, originally, Bagir was part of Polgat, which represented the old economy of Israel as per the 1980s. We are talking about large factories in established industrial sectors that were protected by tariffs.

Polgat regrouped over the decades. Bagir was spun off. But less than a decade ago, it lost its key contract with Marks & Spencer in the UK. That was a big commercial ‘ouch’.

Leap forward to 2014 and check out Bagir’s website. “One in six men in the UK own a suit made by Bagir”. That is a statement of phenomenal success. Clients include major chains like John Lewis and Austin Reed. Sales are also being developed in new territories, such as Australia.

There are many reasons for the turnaround, starting with quality management. I would like to focus on the company’s ability to pinpoint a historical weakness in their market and find an effective solution. The ‘secret weapon‘ is an ability to produce suits that can be readily washed and still look new. Now that is very important to the consumer, who has just invested several pricey dimes in a couple of pieces of ‘rags’.

Israel is noted for entrepreneurship, specifically in the high-tech sector. This is just another way of using that brawn while then applying it to traditional industries.

 

The house of the hill – in Brussels and in Ramallah

16 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinian Society, Palestinians

Why has Europe begun to question its role in the Palestinian financial system?

A recent diplomatic conference highlighted the problems of the Palestinian economy; strikes, corruption, high unemployment, and more. The event was hosted in Prague and since  1991, the European Union – through its taxpayers – has been arguably the principal monetary supporter of the Palestinian territories, directly and through organization such as UNRWA.

The flow of these billions is set to continue, at least to the end of the decade. Yet throughout this period, there have always been three key ‘misfits’, enveloping these subsidies.

  1. Why has the Palestinian cause earned such large fiscal attention, when others in Africa and elsewhere have missed out? It is a decade ago since Nigel Roberts, former ranking World Bank representative in the region surmised global financial support for Palestinians as “the highest per capita aid transfer in the history of foreign aid anywhere”.
  2. Why has the Arab League, for all its wealth, never matched the contributions of the Europeans?
  3. Why is Palestinian poverty highlighted and blamed solely on the Israelis, when a World Bank report noted that the Palestinian economy grew under Israeli control by 5.5% annually up to 1999? That is a phenomenal performance, absolutely and relatively.

Something does not add up.

Back in 2003, the European Union investigated claims of fraudulent use of its resources by the Palestinians. The report under Christopher Patten was never released. (Interestingly, Patten went on to run the BBC and was famed for burying reports there). In parallel, The Funding for Peace Coalition was active for many years on these same issues. As the website poses: Where has all this money disappeared to?

These are contribution paid for by farmers in Greece, small businesses in Germany or even the owner of a pub in Putney, London What has been achieved through their generosity? Specifically, as Alarabiya News questioned regarding Suha Arafat, how did the wife of the former Palestinian Chairman amass such wealth? Should people be concerned? I believe so and for three separate reasons:

First, it is an issue of good governance. A taxpayer expects his representative to take responsibility. He has a fundamental right to know where his money ends up and that it is for a reasonable purpose. It is difficult to find any other subject, where such sums – billions – were and still are transferred with relatively little transparency and accountability.

Second, as reported above, there are a lot of poor Palestinians. No argument. They deserve better. It is staggering to consider that the financial transfers from the European Union have not made a more lasting and significant positive contribution on the Palestinian economy. It is even more amazing when you compare this failure to the World Bank analysis, noted above, about how the economy had previously leapt forward when Israel had full control of the territories.

Third, there is considerable evidence, which suggests that not only have funds been diverted for the benefit of an autocracy, both in Hamas and in the Palestinian Authority. Monies have ended up in the hands of terrorists. As admitted in the House of Commons in London, by a minister at the Foreign Office, Mr Hugh Robertson, “UK officials raised the issue of payments to Palestinian prisoners in Israeli jails with the Palestinian Authority (PA) most recently in March 2014. The International Development Committee also received information on this issue from the Minister of Finance during their visit in March.” In the same vein and possibly even more bewildering was the question raised in the European Parliament by Michal Kaminski.

It is a well-known fact that the Palestinian Authority proudly owns up to illegally spending over 6% of its budget — donated by, among others, the EU, where funding terrorism is against the law — on salaries for terrorists in Israeli prisons and pensions for the families of suicide bombers. The Palestinian Prisoner Affairs Minister, Issa Qarake, has admitted on television that the salaries are directly proportional to the terrorists’ sentences and the number of Jews they have killed……What is the Commission’s strategy to stop EU funds being used to pay salaries to terrorists in Israeli prisons?

And the response:

The EU is aware that the Palestinian Authority has a system of allowances in place for Palestinian prisoners, their families and ex-detainees. This scheme is not and has never been financed by the EU.

Maybe………..BUT how did the PA have enough money in the first place to distribute such payments?

For the record, there is also growing disapproval of some of the actions of UNRWA, to which Europe pays hundreds of millions of Euros annually. Not only does this billion dollar organisation have no external auditing procedures. It prints and distributes textbooks in its schools that appear to promote violent incitement against Israelis.

So where to now? The current round of peace talks is precariously balanced. The Palestinians are fuming about the non-release of terrorists by Israelis. In turn, Jerusalem feels that President Abbas has deliberately instigated the crisis, just like at the beginning of the Intifada in 2000. In response, Prime Minister Netanyahu is forcing the Ramallah government to pay up on extensive debts, which sounds ironic in light of the above discussion.

There is some hope. On the ground, individual Palestinian entrepreneurs are trying to work with Israelis. And Israel is actively seeking to open up commerce for its Arab population. It is also very welcome to see the read of the approach of Michael Theurer, chairman of the European Parliament’s Committee on Budgetary Control. Writing in the Wall Street Journal, he observed how in December 2013,”the European Court of Auditors revealed major dysfunctions in the management of EU financial support to the Palestinian Authority, and called for a serious overhaul of the funding mechanism.” He continued:

The report from the European Court of Auditors is a wake-up call on the need for stricter supervision of how EU funding to the Palestinian Authority is spent……A useful next step would be the imposition of clear benchmarks and conditions that the Palestinian Authority would have to meet in order to receive additional EU funds. These should include improving the state of human rights in the West Bank, cracking down on corruption and cutting off subsidies to convicted Palestinian terrorists.

Until then? The sad fact is that as long as Palestinian and European decision makers remain safely ensconced on their hilltops in Ramallah and in Brussels, Palestinian and Israeli civilians alike will continue to suffer, as will the bank accounts of European taxpayers.

Two surefire ways for firms to secure new clients

10 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Most of us – business owners, sales teams, employees in small firms – we are all concerned about the state of the company’s bank account. We are constantly looking for the next customer, even to the point of distraction.

When I sit down with my Israeli clients and ask them where the next sale will come from, I am frequently greeted with a blank look. As the business mentor, I push, and am still greeted with an empty expression. And this is what bugs me.

So, I turn to them and employ tactic number one: Imagine the bank is about to close your account, but has given you one month’s notice. What can you do in 30 days to turn things round? In other words, your business has been placed on a ‘sink or swim scenario’ – what are you going to do, NOW?

It is amazing how many people then respond, by saying: “Well, I could do X that I had been thinking about for ages”. And once the proverbial floodgates have primed open, this statement is usually followed by a wave of other suggestions.

Let me be clear. Rarely do all of the strategies hit their mark. Yet invariably, a month later I have a smiling client in front of me.

Meanwhile, I have already employed tactic number two: I ask my client to take out their mobile phone and to start to go through their address book in order to see who they can call. Sometimes, this request is greeted with skepticism.

Yet invariably, the client finds old customers of theirs who require a quick chat and / or new potential targets. To ram home my point, I ask my own client to make the first few calls there and then. Surprise! Sales meetings are set up on the spot.

Bottom line: It is bewildering how often the next sale is so close to us, but we are not prepared to recognise it or to look for it.

2 practical time managment techniques for 2014

8 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

In the past week, at least four of my customers in Jerusalem have turned round to me and complained: “I work very hard yet remain behind the ball game in completing my tasks”.

And how do they know that? Well, the ‘to do’ list piles up ever higher, as – more crucially – the bank reserves run down, because they are not able to complete deliverables on schedule.

Well, this is not a new subject. Moses wondered how he would get 600,000 Israelites out of Egypt on time. Today, there is plenty of on-line advice. Just take these two articles, posted this week: –

Good reads. As a business coach, I am looking to offer my clients a practical methodology. So I have come up with two methods.

First: Do not lie to yourself, because you cannot cheat the clock. There are only 24 hours in a day. In an average day, you cannot work more than about 10 hours. Beyond that, there may be one-off longer days, but they are not repeated constantly and certainly not with quality output.

And here is the clever part, be you a rising star in your organization, manager, or senior exec; all of us have to divide up our day between three or four different categories of work: admin, r&d, marketing and production. (And do not forget lunch breaks, which our bodily car engines need). Yes, each section applies to us and thus needs dedicated time.

So, if you take on a task, which seriously minimalises your time investment in one or more of the other groups, you are going to end up …just where you do now want to be. Why? Because you tried to invent hours that do not exist.

Second: Turn your phone off, twice a day, for one hour at a time, at least. If somebody calls you, when you are trying to concentrate on a task, that interruption – even if you just look to see who it is – puts you back in thought time and your ability to complete a task. I cannot think of one person in the world who needs to be on call 24/7, 365 days a year…… and that includes you and me.

So pls, work out what you intend to do with your next ten work hours, of which 20% of which does not involve your mobile phone. Have a productive work day!

Just how open is the Israeli economy?

7 April 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Israel’s economy is performing “realtively well” according to the Governor of the Bank of Israel, Mrs Karnit Flug. She noted how: “We should we remember that we’ve had a lot of experience with geopolitical shocks, and the Israeli economy has shown resilience to these shocks.” Encouraging.

Israel’s critics tend to refer to Israel as an Apartheid state. A politically-correct term, which often has more to do with crude denigration rather than fact, this position has faced three stern tests over the past few days.

Let’s start with Turkey, whose Prime Minister only today was accused by a co-student of reading Mein Kampf when at school. Ankara has spent much of the past decade reinforcing Muslim values, while doing its utmost to humiliate Israel, including President Shimon Peres. And yet:

the Turkish Statistics Institute documented an expansion of the Turkey-Israel trade balance, despite the brutal anti-Israel ideology of President Recep Tayyip Erdogan. The institute reports a 56 percent export increase, to Israel, during the first five months of 2013, compared with the same period in 2012, while imports from Israel increased by 22% during the same period. The Israel-Turkey trade balance was $3.4 billion in 2008, rising to $4 billion in 2012.

The next point refers back to Israel’s success as a start-up nation. According to the British Economist Intelligence Unit, “Israel’s cluster of high-tech companies, investors and incubators is enjoying a boom which has not been witnessed since the global tech bubble burst more than a decade ago.”

And Israel’s mandarins are channeling even more resources towards the peripheral sectors. I have already reported on the emerging success of high tech in the minority communities. This week, the Israeli’ government’s Office of the Chief Scientist will sponsor a conference on behalf of hundreds of entrepreneurs and technology executives from Israel’s Arab, Bedouin and Circassian Communities. I suppose this ties in neatly with the fact that a few days ago, a non-Jewish participant won the country’s reality TV show of ‘Master Chef’.

Third, few outside Israel are likely to have heard of a wonderful event held last week in the holy Old City of Jerusalem. A music festival, which reached out to all four Quarters and was located around the holy sites of all the major religions, it featured 11 stations where the folk music of Jerusalem could be heard. Jews, Muslim, Armenian, Ethiopian and others played and danced in front of an equally mixed set of audiences, boosted by Israel’s growing tourist population. The shops, bazaars and eateries of the Old City lapped up the extra commerce.

A closed, apartheid economy? The evidence on the ground seems to point in the very opposite direction.

If you are a CEO, then it is time to act as one

28 March 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

 

A blog this week on the Harvard Business Review referred to how CEOs need to “own a crisis”. Using the recent scandal at GM as a case study, the writer noted how the CEO, Mary Barra, took full responsibility for an issue even though it had evolved before her time.

It could be argued that Satya Nadella’s performance as Microsoft’s new boss is in a similar vein. Many have argued this week that when he launched the Office version for Apple’s IPad, he was effectively admitting that Microsoft’s strategy for the past two years had been…wrong.

Interestingly, as a business mentor or coach, I see this phenomenon of accountability all the time. For example, I visited one company in Jerusalem last week, where a senior manager was refusing to become worked up about the threats of a large national supplier. After all, that supplier had behaved incorrectly and had not honoured their word.

Guess what? One week later and that same supplier has shown that they are not too interested in verbal discussions. They see the picture very differently and have taken the matter to court, which will keep everyone busy for a couple of years. My client has been caught out, lacking a strategy.

Much the same can be said of stock control. I constantly meet owners of retail businesses, who complain of cash flow problems. Almost invariably, an initial review will reveal high stock levels. And again, almost invariably, this is explained through unexpected changes in the market, which caused a downturn in sales.

Amazingly, the CEOs rarely admit that they had made a mistake. However, even new stock does not sell itself. In the past few months, I have seen middle aged men incorrectly purchasing merchandise for a shop that sells clothing to young women. I have seen gift shops piled high with too many irrelevant products such as books. In each case, the owner finds it difficult to say ‘mea culpa’ and make the necessary changes in policy.

The role of a CEO is to lead. When the chips are down, that does not allow you to blame others. The situation should force you to stand up and to be counted by clients, suppliers and colleagues alike.

You are a biz owner and you want to be the leader. Help!

22 March 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

The internet is full of articles about how to be a great leader. One of my favourites is Walter Isaacson’s critique of Steve Jobs. And many of these essays will point out the important differences between leadership and management. In effect, this is one of the key challenges I face as a business coach. CEOs, whether they be at concept level or at a much later stage of commercial development are asking me: “How can I lead my company out of this mess and into better times?” From my perspective, I am usually find myself looking at a fairly anxious-looking new client, whose face is demanding some words of wisdom and hard impact. And this is when I reveal my surprise. I start with the client themselves, taking them back to basics. First, some elementary body language. In the past month alone, I met three individuals in Israel who had sat opposite me either with their arms folded or in a slouched position or both. As I pointed out to them, that posture is not the one I would expect from somebody who is engaged with what is going on around them. In fact, I do not know of too many senior execs that I respect who hold themselves in such a manner. Message? Change or been seen as somebody less than you are. However, the second point is much more challenging…and this applies to at least two of the three people referred to above. When I went into their office, it was a mess. New papers intermixed with old correspondence. Invoices strewn everywhere. Pens and pencils, usually non-operative, scattered on the main desk. etc. Not an enthralling sight for visitors, be they suppliers or customers, to have to contend with. As I try to encourage my clients to understand: If you want to be seen as a leader, the first thing you must do is to create your own professional environment. Your office should echo what you are demanding, and this will often have a knock on effect on how others judge you. For the record, when my clients find the time (and courage) to have a junk out, they benefit financially. It is amazing how many discover missing contact numbers of potential clients or expenses where the VAT has not been claimed. Leadership skills can be learnt. Some people find this easier than others. However, in order to become a leader, you need to show others around you that you can command respect. That starts with implementing a few old-fashioned basic principles that are often taught back in first grade.

Breaking the hightech mould – 3 amazing stories

21 March 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Another week zips past and yet more overseas money is invested in Israeli start ups. China’s e-commerce giant, Alibaba ploughed US280 million into Tango. Cyvera, a data protection company that has only been around for three years, is about to be acquired for US$200 million by Palo Alto Networks. And so the list goes on.

Also this week, I was invited to a networking event for Angel investors in Jerusalem. There were several start ups in the crowd, and some were given 15 minute presentation spots.

The key point is that what I was observing was the next set of Tangos and Cyveras. Here are the three that caught my eye:

CellBuddy recently won the coveted prize at the Barcelona 2014 Mobile fest for the most innovative company in the start up category. Led by Ofir Paz, a successful serial entrepreneur, Cell Buddy will empower mobile users to choose their own operator, whenever and wherever they are. When the company releases its first product during the summer of 2014, market calling prices are set to tumble.

Not by chance, Ofir pointed out that only 12 months previously, Israel’s Waze had been nominated as the best mobile app at Barcelona. By the summer, it had been purchased by Google for over 0ne billion dollars.

Doogma also benefits from the expertise of an experienced high-tech team. As the website says, the company offers an interactive approach for companies to sell their products on line. And a video demo shows just how practical the service is.

The company launched its first version in late 2013 and has already seen a healthy level of initial sales. Its global market is vast, an application that can used in the clothing market, furniture, jewelry and more.

Inpris offers hundreds of millions of visually impaired people the opportunity to use screen-based hardware just like everyone else. The technology does not rely on further ad-ons. Effectively, the company has found a way to adjust the equipment to the needs of the individual, which has secured for them several pilot projects. Steve Jobs would have been delighted with this approach.

In Israel, everyone know the phrase “Danger! Border ahead. Do not continue”. With some irony, Israel has acquired a healthy reputation in the field of hightech, And one reason for that is how entrepreneurs ignore the limits of the existing rules. Here’s to Barcelona 2015?

One cool detail about the Israeli economy

17 March 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel

The current Israeli government has just entered its second year of work. Twelve months ago, there was no budget, a concern for a runaway expenditure and no chosen replacement for the governor of the central bank.

And today? The question remains if the economy is sliding into a recession? With growth rates seemingly at a little more than 3%, that is a full percentage point below the average triumphs of the past decade. What next?

Karnit Flug, the new BOI governor, offered a way forward in a recent interview. Basically, Israel’s economy is very sound. And her words were given further importance this week, when the latest set of trade figures were announced, revealing a sharp narrowing of the country’s trade deficit.

Let’s be clear, Israel’s economy is still restricted by some old-fashioned structural issues. The ports are dominated by unions. The same can be said about the monopolistic Electricity Company. The prices of many basic commodities remain high due to protective practices of interest groups. Small businesses are handicapped by red tape.

For all that, Israel has not had a recession for over a decade. If you ignore the ‘imposed dip’ in the first half of 2009 – a consequence of the global credit crunch – Israel’s financial planners have ensured that the country has achieved annual growth rates of over 4% for years. Few members of the OECD can boast such an achievement.

As for 2014, the government is looking to shift expenditure away from the defense monolith. The new off-shore energy industry is starting to produce significant revenues for the treasury. Inflation is within target levels. There are some initial signs that the housing bubble may be coming to an end.

If all those factors culminate in ‘only’ 3 – 3.5% growth, that is not a recession, but a relative slowdown in expansion. The Israeli economy appears well-placed to meet the next series of challenges that could be thrown at it.

Why Europe is encouraging financial investment partnerships from Israel

16 March 2014
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

For over two decades, Israel has been parading itself as the start up centre of the Middle East, encouraging overseas players to invest in technology, stocks and infrastructure in the Holy Land. For example, “foreign  investments in companies traded on the Tel Aviv Stock Exchange more than  tripled from 2012 to 2013″ to US$1.5 billion.

Yet it was the visit to Israel last week of the UK Prime Minister, David Cameron, which alerted observers to a more balanced flow of financial trade, especially with Europe.

Yes, Cameron won over many friends with his clever speech to Israel’s Parliament, the Kenesset. He also pledged a series of aid measures for the Palestinians. This included yet more UK taxpayers’ money to be channeled through UNRWA, a billion dollar a year project with no external audit.

What was new was the 70 million of investment into the UK pledged by Israeli private enterprise. The investment, which will create hundreds of UK jobs, including:

A £50 million commitment by Israel’s Noy Infrastructure and Energy Investment Fund to the UK’s renewable energy sector.

A £12 million investment by Israeli pharma company Teva in clinical development in the UK.

A £10 million investment by Israel-based AposTherapy in the UK in the next three years, creating hundreds of UK jobs.

As the two countries noted: “These announcements are testament to how the UK and Israel work successfully together. UK exports have grown steadily and we are now the third largest exporter to Israel and there are now over 250 Israeli companies operating in the UK.”

These are not isolated moves by Israeli companies. It was reported last month that “Israel’s institutional investors have sharply increased their holdings in overseas markets, which now represent 22% of assets under management at the end of last year, up from just 15% three years ago….. Among other foreign investments favored by Israeli institutionals were ETNs tracking European stocks and shares in emerging markets.”

So where has this paradigm shift come from? The fact is that while Israel’s economy has its problems, it is considered strong and solid. Through a stable banking system, it rode the global credit meltdown more successfully than most. It is developing an offshore energy industry. Add to that the financial benefits of Israel’s propensity to come up with great start ups, and you end up with a lot of new capital looking for a base overseas.

And that is why Europe is increasingly looking to tap into Israel’s emerging abilities in the money markets. Hundreds of millions stand to benefit from this new source of wealth in the Middle East.

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