Pages

Israel’s economy: What if…….?

9 December 2013
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

It is becoming increasingly apparent that for all the complaints of the Palestinians, the Israeli government has made some genuine concessions in the secretive peace talks between the two sides. There have even been unconfirmed discussions with the Saudis.

For decades, one of the basic gripes of the Palestinian Authority has consistently been the argument that Israeli security measures have restricted the development of their economy. The rhetoric has been backed by a plethora of reports from the IMF et al.

In some ways, this is no brainer. If you block the free flow of peoples and materials, whether or not you may be stopping a suicide bomber or two, you are going to impinge on commercial growth. It is worth reflecting that the World Bank reported that the Palestinian economy under so-called Israeli occupation was one of the fastest growing in the world for decades become Chairman Arafat launched the Intifada in 2000. It would be interesting to calculate how much Palestinian people have lost financially for the cause of violence.

Actually, there has often been a second level of economic concern for the Palestinian leadership. While on the one hand, it quietly promotes the boycott campaign of Israeli products, tech, academia and art, it also demands that Israel does more to support its fledgling economy. A classic example is the need to replace Gaza’s dependence on Egyptian electricity.

The seemingly political-correctness of the boycott campaign masks the hypocrisy of the fact that it too acts as a barrier to encouraging trade between parties. Clearly, this is a case of the pot calling the kettle black. And there is a more deeper, and conveniently hidden, question. How much has Palestinian hatred towards Israel cost the Israeli economy?

Two starting points: First, since 2001, Israel has had to invest heavy resources to combat an Intifada, defend itself against incursions from Gaza, fight a war in Lebanon, protect itself against a nuclear Iran, and fight off a global recession. For all that, average annual GDP growth has been around 4%, impressive by any standard. Second, before the Intifada, it is estimated that around 125,000 Palestinians secured regular daily work in Israel. Today, that figure has ‘climbed back’ to around 40,000.

The New Yorker Magazine recently estimated how much Israel has surrendered in lost economic potential because of the existential threat it faces. The journal quotes an economic model from Yusaku Horiuchi and Asher Mayerson, who asked what would have happened if Chairman Arafat had accepted Barak’s proposals in 2000 at Camp David. (It would appear that much of this offer is still on the table today via John Kerry!)

Cumulatively, from 2001 to 2010, Israel’s per capita G.D.P. was $25,513 less than that of synthetic Israel’s. ….For an Israeli family of four, even after income taxes, it might have meant a down payment on an apartment, a college education for a child, or a couple of new cars…..Because tax rates in Israel are generally around forty per cent, there are implications for the government, too: based on conservative estimates (assuming, for instance, that only a third of the revenue goes to taxes), the lost G.D.P. could amount to nearly sixty billion dollars going to the government—a big proportion of the country’s annual budget.

This week, Israel announced that it would help to fund a project to build a water pipeline from the Red Sea to the Dead Sea, which will jointly benefit Jordan and the Palestinians territories. Just think how many other infrastructure projects – schools, hospitals, roads – could have been funded if violence had not forced a different turn of events?

Where will my next sale come from?

7 December 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Point one: I was speaking to a senior exec of a high-tech company in Israel, where sales have fallen off just recently. And the top management is asking everyone how they are going to find a way out of the trough.

Point two: I have been asked to help two Facebook campaigns, where so far the results have been minimal, at best. What to do?

Well, a lot of the discussions have centred around what is the market, new trends and target groups, who is doing the selling, etc. However, as a business mentor, I often try to present potential solutions in a graphic or pictorial manner.

I have come across two excellent sites on this subject. The first is supplied by The Hinge Team, who offer a technique to turn ‘buyers into believers’. It is interesting that the starting point of their Infographic is that often sellers provide the wrong solution. Yes, sure, there is a major chapter as to why selling is all about building relationships, nothing new there. The Hinge research revealed something far more fundamental.

What we found was an utter failure to see the marketplace in the same way…….we noticed substantial gaps between the way the
two sides perceived and understood key issues.

That is a statement which I urge all involved in sales, directly and indirectly, to think about and then to internalise.

Next up is Jonathan Gabay, an international branding expert, who forwarded to me a fascinating presentation titled “The secret psychology behind persuasive content.” Although this is more aimed at those teams using social media, slide 15 summarises the same points above.

Yet it goes further. The central slide is number 42: “Be Audacious”. Offer the reader something which is of value. And how? Through being provocative and bold, while making sure that you can deliver.

What is curious is why experienced management cannot always see through so clearly to these key starting factors? Time for another infographic.

Fitch and S&P back Israel economy

1 December 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

The Israeli Ministry of Finance can feel pleased with itself. Less than six months ago, after a period of political instability, the country’s coffers were plagued by a hole as large as US$4 billion. Last week, Minister Yair Lapid was able to cancel further tax rises, as expenses have been curtailed and revenues have been higher than predicted.

Enter Fitch Ratings, which announced late last week that it was upgrading Israel’s credit outlook to positive. “The foreign and local currency Issuer Default Ratings (IDR) at ‘A’ and ‘A+’ respectively. The issue ratings on Israel’s senior unsecured foreign and local currency bonds have also been affirmed at ‘A’ and ‘A+’ respectively.”

There are several key factors causing this optimism:

  • The budget deficit in 2013 is expected to be 3.4% of GDP, less than 3.9% of 2012 and far less than the 4.6% originally forecast.
  • The first flows of off-shore gas production has led to a reduction in the trade deficit.
  • FDI remains solid.
  • The Iranian threat, at least for the moment, is on hold.

Fitch was not concerned by the scrapping of tax increases. “It said this does not change its view on the government’s commitment to reduce the deficit in the future. The agency (also) noted the government’s progress in addressing the economy’s structural problems, citing cuts in National Insurance allotments that could encourage people to enter the workforce.”

Two days earlier, S&P hade made similar encouraging noises on the Israeli economy. While sounding more cautious about the government debt and the Iranian factor, the agency believes that there is no property ‘bubble’ as predicted by many and that gas reserves will eventually make a significant difference to the economy.

So after all the back slapping, what does this mean for the Israeli financial planners? Very simple. The government in Jerusalem can now devote less money to interest repayments and redirect resources to infrastructure projects. That should help direct the country to further growth.

3 reasons why small businesses need to talk to their banks

29 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Many years ago, when I was setting up my business and struggling, my banker in Jerusalem gave me some invaluable advice.

The gist was: Talk to me, especially when you see yourself getting into trouble.  And he added: I cannot promise a great solution, but you being forthcoming will show me that I can trust you. Thus, I will see what I can do.

So true. And now consider that advice in the light of these three stories from business mentoring clients of mine, all of whom can be categorized as a small enterprise (SME). Each has suffered, financially and logistically, as a result of not ‘keeping in touch’ with the clerk, who was supposedly looking after their money.

Story no’ 1: My client had not doubted the integrity of his bank, who she had been using for over a decade. She had rarely needed their help. Everything appeared dandy. That is until she hit the painful area of poor cash flow and was seeking a loan. So, she fixed an appointment.

However, despite arriving on time, the clerk was busy with somebody else….for over 30 minutes. After all, my client was not a known commodity. Despite eventually being seen by somebody else, she started digging around and realized that she was paying exorbitant charges. To cut a long story short, she now speaks regularly with a different bank who had offered her a loan on much better terms.

Story no’ 2:  After much legal haggling, this client’s bank was forced to lift the restrictions that had been placed on their account. So that seemed fine and there would be no further ramifications, correct?

Years later, my client entered a different branch of the same bank, where is was considering opening up a new account. The conversation was stopped after 2 minutes. He had received a straight refusal. Why? The original branch had not completed “the paperwork”, and thus it appeared on the computer as if they had an existing account, which was still restricted. Again, my client had stopped liaising too early.

Story no’ 3: In this case, my client took over an existing business. In the change-over period, a couple of cheques bounced, even though there was sufficient reserves. Nevertheless, my client ignored the lines on his statements, as the cheques went through the following day.

that he had been (and therefore still was) a bad credit risk. He paid the price for not communicating as much as he could have done.

The lesson: Small and medium sized businesses have a tendency to run away from the banks. It is time-consuming and they are often seen as unfriendly if not simply inconsiderate to the requirements of SMEs. If you suffer like that, then move. My experience is that most bankers are looking look to provide their customers with practical solutions. T o learn about what is available, it is the responsibility of the business owner to talk regularly to his ‘supplier of financial services”.

Why does Apple want a bigger bite out of Israel

27 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

After much speculation, it is now official. “Apple has completed an acquisition of the Israeli company PrimeSense, a sensing company whose technology has powered Microsoft’s popular Xbox Kinect for Xbox 360.”

It is very interesting to note that since the passing of Steve Jobs, Apple has clearly looked towards Israel for some of its key tech purchases. For example, earlier last year, Anobit , a semiconductor start up, was snapped up for at lest US$400million. AuthenTec’s security capabilities are used in latest iPhones. And Apple operates 3 r&d centres in the Holy Land; in Ra’anana, Haifa and Herzylia.

Tthe latest rumour is that the engineers in Ra’anana have come up with a Bluetooth application, which will be incorporated into a new product called the iWatch. This is scheduled to be launch during the summer of 2014.

Effectively, Israeli tech will play a key role in most of Apple’s leading products, just as Samsung, Intel, Microsoft and others have benefitted in the past decade or so.

How start ups can get it right (2)

26 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

The previous posting observed that for all the hype of start-ups – around the global and specifically in Israel’s Silicon valley – between 30-50% do not make it. One way to pitch successfully to investors is emphasise the ‘why‘ of the project. People tend to buy in to your vision and dreams rather than fantasised markets and wow tech.

That still leaves a conundrum: How to present the ‘why’ in a convincing manner? Enter Yochi Slonim, a successful serial entrepreneur, who has been marketing, creating, managing and selling high-tech starts in Israel for nearly two decades. And for all that, Yochi poses a very simple question. How is it that in 99% of all presentations, when a CEO enters a room, backed by a great team and tech, the viewing panel of investors concludes with “thank you, keep us informed and good luck”. What is the cause of the continual misfit, which Yochi himself has encountered on hundreds of occasions?

In a recent appearance at the Jerusalem Business Networking Forum, which I had the honour to moderate, Yochi gave the answer under the title “startups are from Mars, investors are from Venus“. The core point is that both sides have similar goals, but they are seemingly located on different planets. They look at the universe from very different perspectives.

Yochi gave several examples of the misfit.

  • An entrepreneur often explains to an investor how they can be the first to be part of a “new generation” of whatever. Actually, investors tend to be cautious people, and thus they want to hop on to wave in second place. I am associated with a biotech project where that is the common response, for now.
  • Similarly, when outlining a classic SWOT analysis, an entrepreneur is happy to talk about the “Opportunity”. The market is mega large etc etc. In fact, many an investor will read / feel / internalize the word “risk” in place of opportunity. And most investors are risk-averse.
  • Innovators often talk about the past experience of their small team in large corporates, when they should be concentrating on relevant skill–sets acquired over the years.
  • Entrepreneurs become so intent on securing revenue from their tech that they ignore the fact that investors tend to seek multi-revenue possibilities in order to minimalise risk.

So what does this add up to?

When an entrepreneur explains his dream, why people should believe in him, he or she needs to know his audience. Obvious, no? But how many of us truly answer the question before we open our mouths for the first time in a meeting?

How start ups can get it right (1)

25 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

“The start-up sickness” was the title of a long article in the Israeli press over the weekend. Even international analysts have long recognized the Holy Land as being the Silicon Valley of the Middle East. According to the World Bank, FDI to Israel reached over US$10 billion both in 2011 and in 2012.

So using Israel as a case study, consider that between 2004 and September 2013 6,886 high-tech companies were opened up, roughly 700 per annum. In that same period, 2,781 closed their doors, leaving a net balance of 4,105 (60%). What makes them ‘keep coming’?

Certainly, it generally takes less money today to create a start-up. However, as one commentator observed, the chances of achieving a mega exit are as great as a 16-year-old female singer becoming the next Rihanna (who has performed twice in Israel). For the record, over the past decade, there have been 106 Israeli exits with a value of more than US$100 million.

99% of start-ups look for money from VCs or angels or small grants from public sources. When creating a pitch, most apply the same rules – make the presentation short, concentrating on the tech, the market, the team, the vision. To put it simply: “Deliver a killer elevator pitch and pray as hard as possible”.

There is another starting point. And I was reminded of it, while watching a slightly dated TED Talk from Simon Sinek. He asks what makes a few individuals encourage others to take action, whether their idea is ‘better’ or not? The answer is in the title of his best-selling book – Start With ‘Why’. By asking somebody to understand ‘why’ you have created a new business, you are forcing that side of the brain of your audience to consider the need for change. Action needs to follow.

In the words of Sinek, people buy into ‘why’ you do something. The ‘what and how’ have an importance at a different level. How to convince those same people about your belief, well that comes in part two.

Happy days at Tel Aviv Stock Exchange

22 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

“The Tel Aviv Stock Exchange’s benchmark TASE-25 index closed at a record high Wednesday, capping a 16.2% surge that began last August.” A day previously, UBS analysts had observed how foreign investors are returning to the Israeli stock market,  possibly for the first time since it entered the MSCI developed markets index in May 2010.

So, what’s going on? There are a number of factors at play, all coming together at once.

First, it was stated at the time that it would take foreign investors some time before adjusting to TASE’s new positioning amongst global indexes. Previously, TASE had a strong reputation in the MCSI emerging market section, yet then had to prove itself from scratch amongst the big players.

Second, TASE has thrown out its old management in recent weeks and has brought in Yossi Beinart, who boasts significant experience in American markets. Since the process begun in the mid summer, turnover has been climbing steadily back towards 2010 levels.

Third, on the financial level, companies, especially banks, are reporting profits. The economy is relatively stable. Interest rates are set to remain low for the next year. All positive signs that speculators look for.

So, what next? There is a threat of a strike at the ports, which could put a temporary hold on TASE.  And some analysts believe that “the recent rally is not out of love for stocks, but because of dislike of the alternatives.”

Maybe. One fact is clear. Overseas players are considering the TASE. The initial inflow of revenues from the new gas fields is also playing a role in this renewed interest. If financiers are looking for a party in 2014, Tel Aviv may be the place to visit.

Help – my small biz needs to create a marketing campaign

19 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

“I need to create a marketing campaign, right now. What do I do? Will Facebook save me? What do I need to?”

These are the types of questions that I have been faced with just recently from clients who clearly fit into the ‘small business model’. When they turn to the internet for help or scan the works of international coaches, they tend to find responses suitable for multinationals. So, what is a suitable answer for them.

Here are two simple guidelines, based on case studies with my customers.

First, consider the works of Hinge, a company who clients feature in the Fortune 500, but who has developed a practical marketing planning guide, which can be adopted by the corner shop in a small village.

Beyond the buzz words, Hinge forces the reader to consider 3 basic questions:

  • What is your message – a.k.a., what are you really selling? Can you describe this in two lines so that it fits in to a bottle?
  • Where should your growth come from?
  • Are you aware of the differences of online and offline marketing campaigns, and how they need to be integrated?

These questions need some very careful thought and discussion. You cannot just launch into a campaign without establishing your own fundamentals about who you are. I strongly encourage my customers to consider what is their value proposition for their own potential customer. And that statement applies to a one-person service provider, a non-profit, start-up or otherwise.

Now let me take this one stage further and more on to my second point. Increasingly, people are turning to Facebook for an immediate and cheap solution. It is the in-thing to do, no? In the past two weeks alone, at least three of my own clients have asked me to find them Facebook marketing experts.

Fair enough. However, the above rule about value proposition definition still applies. The external expert cannot create this for you. And in addition, as sales campaigns via Facebook is still a relatively new industry compared to traditional advertising, by definition these so-called experts tend to lack experience.

Here is an example of what I mean. Yesterday, I was meeting with a client in Jerusalem, when we held a conference call with a somebody involved in social media. He could point to previous clients who had given him testimonials about the number of clicks he had achieved for them. Great. Very genuine.

However, these assignments had been in the non-profit sector or politicians.Mar My client is a business, seeking to sell a product. They are not just looking for ‘likes”. They want money to be transferred to their bank account. This demands a significant and additional set of thought processes. Could Mr. Expert provide such a service?

Marketing campaigns are sophisticated creatures. Their content is driven by understanding the key fundamentals of your business, regardless of its size or type of organization. It is the task of the business owner to identify those characteristics, before sums are laid out at the implementation stage.

Can El Al make profits for its investors?

17 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

El Al is Israel’s national airline. Although privatized nearly a decade ago, it is still seen as the people’s airline – you come home, back to the Holy Land.

For all the cuteness, El Al has not had an easy history. For years, the joke was that its name stood for “Every Landing Always Late”. The acronym actually means ‘skywards’). The company has had to bear extremely high security costs. (Israelis noted that 9/11 could not have happened on El Al planes). Due to the Arab boycott, it is restricted from flying directly to parts of the Far East, thus increasing travel time and costs.

On top of all this, the Israeli government has agreed to a policy of ‘open skies’ with the EU, which will force down the prices of tickets. Easy Jet has long been ahead of the game, continuing to add more and more flights to Tel Aviv.

And despite all this, El Al is in the money. Last week,

The carrier reported $643.29 million revenue, up 6% or $37.52 million from the corresponding quarter. Gross profit rose 11% to $159.74 million and net profit soared 54% or $20.31 million to $57.86 million. Sales expenses were $56.41 million for the quarter.

The reasons for the massive and continuing improvement in the financial statements are varied, including seasonal factors, a new hedging policy for purchasing fuel and additional government support for security costs. In parallel, the company has adopted a more aggressive pricing attitude to meet the challenges of increased competition.

As the land of miracles has shown, even smaller international airlines can make profits.

Work long hours and remain healthy?

15 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Last week, my wife wrote an email to a colleague abroad, arriving around midnight their time. She had a response within minutes. As my wife put it, these are people in corporate America who are married to their jobs.

My first thought was that more fool you guys. When companies like this undergo management change, they are often the fools who lose their jobs – hard working or not. And what about their families? I was drawn to recall all this by a series of posting on the blog pages of the Harvard Business Review. “You need more sleep” led off one writer, claiming how more companies are encouraging workers to relax more often.

In similar fashion, Tony Schwartz asks: “What Would Make You More Satisfied and Productive at Work?” Surveys repeatedly find that only 30% of employees are truly engaged during work hours.

A few weeks ago, a client of mine called me up one early evening. He had had a lousy day. At the start of a sales campaign, everything that could go wrong, did so – customers walking out etc etc. As business mentor, what could I suggest that would help? Naturally, I was supposed to be full of sympathy.

I took a different track. I asked two simple questions. How much had he slept the night before kick off? Answer……..30 minutes. How much had he eaten in the past 36 hours? Answer………a couple of pieces of fruit. With that additional set of info, I added three statements. Before anything else, eat a fulsome meal. Then pick off the three most critical problems to solve. Finally, ignore the rest and go to bed early. Two months later, there was a large bonus in the bank account.

The body is like a car. If you try to run off nothing, you get nowhere!

Here in Israel, a recent article in Hebrew cited the head of the local branch of Unilever, Anat Gavriel, and Dov Kotler who is in charge of a major credit card operation. They both advocate full breakfasts with the family. Similarly, Ayelet Levy-Peled is the CEO of Laline, an Israeli cosmetics company with branches overseas. She insists when possible on not starting meetings after 5.00pm.

Next time you try to get 25 hours work out of a regular day – 6 days a week, just consider how effective you are being.

Israel’s latest financial worry – too much money

13 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

So what’s grabbing the news headlines in Israel? Will Iran go nuclear? The true cause of Arafat’s death? Why poor rainfall is not causing a drought?

None of these. The question of the day is why does Israel have billions of extra dollars in its treasury and what to do about it? Such are the problems of life!

Step back. Twelve months ago, as Israel entered a general election, it was generally agreed that around 15 billion shekels, say US$4.5 billion, of expenses had not been financed. By the summer, the Minister of Finance had managed to secure a package, which included raising VAT by 1% to 18% and cuts in various social security payments. Very painful.

Today, there is a very different picture to describe.

  • Targeting ‘trapped profits’ of large companies such as Teva, 4.4 billion shekels was secured, when only 3 billion had been hoped for.
  • Government spending is at least 6 billion shekels lower than predicted (up to October 2013).
  • On-going tax collection has resulted in an additional billion shekels beyond what was budgeted.

By my maths, that makes the country 11-12 billion shekels better off than had been foreseen even six months ago.

There are still large problems to overcome. The Defense Ministry is demanding a large slice of this extra cake. The government and port unions are probably on a collision path, which could impact on export revenues and more, maybe commencing next week. Politicians are demanding a retreat from the high level of VAT. etc etc.

In fact, the true test for Yair Lapid, the finance minister, is just about to begin. Introducing tough economic measures just after a general election was not easy, but he had a mandate. Kudos for his political courage. However, managing successfully the fruits of that policy will be even more difficult. Now for some real work.

Business Mentoring in Jerusalem – 3 quick case studies

12 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

People often ask me what is business mentoring about. Surely, it is another form of consultancy, they ask sarcastically and almost rhetorically, implying that I am trying to pose as an expert on everything in order to get a buck.

So, here are three quick case studies of what has happened to some of my clients in the past few weeks. While this may sound like showing off, together they represent a response to the critics above and show what a mentor or coach can offer most businesses, large or small. (For the sake of brevity, some of the stories have been slightly altered)

1) The Bank:

To cut a long story short, my client’s bank acted illegally. He was exposed to possible financial damage as well as embarrassment re suppliers and customers. The client, call him Adam, at his own initiative turned up to his next meeting with his banker, armed with a big smile and a lawyer’s letter. Adam calmly, no shouting, told them what he thought. He told them to go away and come up with a response.

At this stage, I was able to ask Adam what he wanted to obtain out of the process. I put forward various scenarios. Ironically, later that morning, the bank responded. Bottom line, Adam effected one of the options and walked out, not just very pleased but much better off.

2) The missing customers.

Many of my clients complain that their own customer basin has run dry. Things are not looking good. I generally react by encouraging people to look at their existing pool of commercial knowledge. Quite often, it is more extensive than we give it credit.

For example, not for the first time, I encouraged a client of mine (Bll) to actively engage some of their quieter customers. Although the initial feedback was friendly but dull in terms of revenue, the medium term results have been staggering. William is too busy to meet me – no exaggeration.

3) Formulating strategy

Most senior business execs know their territory and are constantly looking to challenge their own strategy. However, it is just as common that they do not have the means to think things through and / or to discuss the alternatives. This can be a result of the pressure of time management, a lack of people to confide in, or just old-fashioned fear.

Most of my meetings take place with people off-site, where they are able to move away from the ‘obvious’ thinking that familiarity breeds. In the past few weeks, I have had several encounters, where I would just ask a seemingly innocuous question about how to develop the organization, and the others present found that they could not stop talking. Suddenly they were creating a detailed map to move on to the next level of sales, production or whatever. Naturally, they did not leave the meeting without receiving some further homework from me.

In each of the case studies, it is my client who does the hands-on work in order to change. My role as mentor is enhance and fortify their achievements. A mentor does not have to be an expert in any given field, but they do have the ability to provide an extra perspective. This is what places significantly added value in to the business.

A right and just way to market a hospital – case study

7 November 2013
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

When it comes to marketing tools, there is no shortage of help from the internet, some very entertaining indeed. In some ways, promoting a hospital or a specific medical unit, can be relatively easy, as you are able to play on raw human emotions.

Yet what do you do to brand a hospital that is seemingly doing just what it is supposed to do – save lives, return people to good health, enhance the surrounding community?

This week, I had the privilege of accompanying a delegation from ASHA (American Schools and Hospitals Abroad), as it visited one of its partners, the Sha’are Zedek Medical Center in Jerusalem. ASHA is the arm of the federal government that since the early 1960s has been supporting medical and educational institutions across the globe. Ostensibly, Sha’are Zedek is just yet another large hospital, even if it is the only one located in the center of the Holy City.

The tour commenced. A lot of impressive equipment was discussed. The visitors saw how both staff and patients came from all sides of the ethnic equation in this political hot spot. New building programs were inspected. Much seemed very stereotype, that is until questions were asked directly to the teams on duty.

For example, Dr. Anthony Verstandig is Director of the Interventional Radiology Unit. An observant Jew who grew up in the UK, he has reorganized his department around stunning digital machinery sponsored by ASHA. As he explained, the procedure at that specific point in time was being supervised by a senior trainee from Ramallah and assisted by a devout Muslim from down the road in Jerusalem itself.

This example of coexistence was not isolated. The ASHA team learned about two women, sitting side-by-side for hours, receiving blood transfusions. Both were of an ultra-orthodox persuasion and both heavily dressed as a sign of modesty. However, the styles of clothing were different, as one is Jewish and one is Muslim.

In 2012, Sha’are Zedek opened a comprehensive breast health cancer center, also financed by ASHA. What I found specifically impressive here are the social dynamics. It is not just that the department now finds tumours that were previously undetectable and thus treatable when caught early. As indicated above, Jerusalem is host to large numbers are women, who live in conservative environments. The new mammography unit offers them a chance to reach out for help in a direct yet discreet manner.

Arguably, the best work done by members of the Sha’are Zedek hospital has very little to do with Jerusalem. Ignoring the training program for nurses or even the research work which can involve centers in America, Bethlehem or Europe, the ASHA visitors were introduced to “just another senior surgeon”. However, Dr Ofer Merin has directed field operations in many of the world’s hot spots.

For example, the Israeli field hospital in Haiti was deemed to have saved thousands after the earthquake in 2010. A year later, the assistance given in Japan was so successful that Dr Merin explained how he was asked to leave his equipment behind. He agreed to this with the exception of the laptops, which ……….were ‘made in Japan’. And in the past few months, Merin has supervised the treatment of hundreds of Syrian refugees in northern Israel, where the situation requires both medical and diplomatic savvy. At a time when opponents of Israel are calling for sanctions, one wonders why such hatred is more important than improving the lives of the average human around the globe.

During the tour of the hospital, the question was asked: Where does the name Sha’are Zedek come from? It refers to the phrase the “gates of righteous”, found in the Book of Psalms. In other words, regardless of background, all who are ill are considered amongst the righteous.

It is this core basic understanding, dating back thousands of years, that Sha’are Zedek offers to the whole populace of the wider Jerusalem community, and beyond.

Doing your best or is average good enough?

1 November 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Remember that phrase from school? “Could have done better”. The fact is that my teachers were usually correct.

However, here are two more facts: Few explained to me why it was important to do better and an even lesser number showed me how. OK, that’s my statement of revenge, but where does it get us?

This morning, I was reading a blog from the Harvard Business Review which argued that average is usually good enough. I was surprised by the tome of the article, especially coming from such a peer source.

On the other side of the coin, I often refer my coaching clients to a six minute clip from the film “Facing the Giants“. The coach of an American college football team urges his team to do “their very best”. I ask people to consider what that really means.

What is your very best? How far can you really go in order to achieve what you desire from business and from life? Just because all of this may not get you to where you want to be nor make you the tops, does that mean you have failed? And the killer question, where I demand total honesty; would you have gone so far through the approach of ‘just getting by’?

All this was brought home to me by three different people, whom I have met over the past month in Jerusalem. Each one is struggling to move on commercially. And each one has been just doing enough in between sessions to keep moving ahead, a bit. After all, to sum up their stories in a generic response, what else could they have done?

Well, my response was to set each one a task (academic, financial, physical or any combination thereof), which I sugar-coated in welcoming phrases, but I knew would not be simple to perform. Effectively, I was showing and encouraging them how to move ahead, placing a host of psychological fears to one side.

In parallel, through a series of questions, I forced them to recognise the consequences of ‘staying where they are today’. Again, each individual had their own Achilles heel.

I am sure there are situations where being average is good enough. However, as a rule of life, that policy is not………..good enough. It is not the best, which is usually so more beneficial.

The relative methodology to understanding BDS

25 October 2013
3 Comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

The Methodist Church in the UK has created an on-line survey to ask for opinions on BDS – Boycott, Divestment and Sanctions – a global economic, academic and cultural campaign to apply political pressure on Israel.

In a nutshell, supporters of BDS argue that Israel’s occupation of the West Bank since 1967 is brutal and contradicts international law. It must be stopped.

Israel’s advocates believe that this is a politically-correct truth, wrapped up in a lie. It is George Orwell’s newspeak at its most triumphant. After all: –

I am not an expert of Methodism, which arose in the 18th Century as a response to perceived hypocrisy in the established Church of England. I do believe that any true religion does not look to generate separation, distrust and hatred. Rather it should be seeking to invest in co-existence at grass roots level. In the past few years, Israel has made the following advances towards working with Palestinians: –

  • Contrary to BDS circulars, Israel helps to provide extra water and sewage solutions to the Arabs, inside and outside the Palestinian territories.
  • President Peres recently invited the Barcelona football team to Israel, and great efforts were made to ensure that the players visited Ramallah.
  • A new scheme has been launched to ensure that 500 Arab teachers are employed in Israeli schools
  • Increasing numbers of Arabs – Christian, Muslim, female – can be found serving in the Israeli army
  • The ‘Save A Child’s Heart’ campaign in Tel Aviv has saved the lives of hundreds of Palestinian children with cardiac conditions over the past two decades. (Actually, the team is currently involved in a unique project in Tanzania. Should that too be boycotted?)

All that is left for me to understand is what precisely the proponents of the boycott intend to achieve? Yes, they can put pressure on celebs like Stephen Hawkings not to visit Jerusalem, even though the very tools keeping the professor alive are powered by Israeli tech. Please note that Microsoft, Siemens, HP, General Motors, Facebook, R&D centres operating in Israel and turning out services for the whole world. Just check out on the internet re the levels of foreign investment in Israel. (However, I suggest caution before using Google, as it is co-owned by an Israeli.)

PWC estimates that Israeli exists in 2012 were valued at US$5.5 billion (mainly from overseas) and this figure will be topped in 2013. This year has already seen:

  • IBM purchase Trusteer, which protects millions of bank accounts in the UK and America from computer theft.
  • Communications giant, Cisco, add intucell to ten other Israeli acquisitions. These applications are found next to the television set and in the phones of billions globally.
  • Facebook buy onavo to enhance its mobile app capability.

Should these deals be reversed, and why? Warren Buffet, French retailer Kiabi, health giant Prolor Biotech and so many more have upped their positions in Israel during 2013, effectively benefitting millions internationally.

So what is BDS really trying to say? If I refer back to the position of the Israeli advocates, they point out that one of the founders of BDS, Omar Barghouti, advocates for the total destruction of the Jewish state of Israel, even though he studied at the University of Tel Aviv.

I suppose this same Barghouti would boycott all the theories and the science of Albert Einstein, because the estate of this Nobel Laureate has been dedicated in its entirety to the Hebrew University of Jerusalem. This leaves many to believe that BDS is another name for the theory of relative hatred.

Turning a desert in to an oasis, of money

23 October 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

In a land of miracles, Israelis used to have a phrase “making the desert bloom”. For a small country, approximately the size of Wales and where around 50% of the land is barren, this was a powerful statement. And yes, farms or kibbutzes have been established in the middle of nowhere.

In 2013, when the world is looking to protect the environment rather than to exploit it, Israel is using its technological prowess in a smarter manner. There is a greater emphasis on either finding water or ensuring that it remains pure.

WATEC 2013 in Tel Aviv has proven an excellent conference to highlight these new skills. In terms of exports, these capabilities were valued at US$2 billion in 2012 and are expected to grow a further 10% this year. Over a hundred foreign delegations have come to see what is on offer.

Some companies like Takadu already possess a considerable overseas presence in America and in the UK, helping local authorities prevent water leakage and thus saving consumers billions every year.

I spoke to the CEO of Watergen, which allows air to be converted to water under disadvantageous conditions. Their first product, which is in use in several armies, allows the generators in military tanks to create pure drinking water. Logistically, this means the vehicles now have space for alternative equipment. It also means that unprotected water carriers are no longer needed in danger zones. Secondary ‘spring’ products are available as backpacks for individuals.

This week, an Israel seed tech company , Kaiima (which means sustainability in Hebrew) launched a new US$65 million fund for the agro-biofuel sectors. Judging from the successes of above and Kaiima’s previous triumphs, Israel will have a lot more to offer the world’s rich and poor in years to come.

Women, empowerment, money – Why Israel?

21 October 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Yesterday, I asked a client about household finances and how high his bills are. He did not have a clue. ‘My wife deals with that’ was the gist of the response. As a rule of thumb, when I speak to people, if anyone is taking responsibility to the home finances, it tends to be the female.

Why? Maybe an answer lies in the appointment of Israel’s new – and for the first time, female – Governor of the Bank of Israel, Dr Karnit Flug. Competent and experienced, she was the acknowledged choice of her predecessor, Professor Stanley Fischer, himself an internationally renowned economist. And yet, it took the government over 100 days and several failed efforts to make the decision. Historians can debate whether egos, politics or any other pathetic reason saw the country’s banking system left partially unprotected.

As things stand in Israel, Flug now joins a growing and honourable list of women at the top of the country’s finances. The three leading banks – Leumi, Hapoalim and Discount – are led by females. Similarly, three of the leading positions at the Ministry of Finance are occupied by women, including that of Director-General.

Women are prominent elsewhere in Israeli society. Ms Sheli Yahimovitch is the leader of the opposition in the Kenesset. Ofra Strauss runs one of the country’s largest food manufacturing companies. Tahunia Rubel, a 25-year-old model born in Ethiopia, won the 2013 season of Big Brother. And so the list goes on.

Yes, women in Israel still have to overcome many of the problems faced elsewhere around the globe. Studies show that equivalent female wages can be at least 20% lower than for men. Specifically, in the film industry, women producers have found it more difficult to receive funding. And religion can ensure that a women’s place remains in the kitchen (or the bedroom).

Israel is a country surrounded by enemies. It has large variations in wealth. Over half the country is covered with barren land. That said, female empowerment in Israel continues to move forward and is light years ahead of its neighbours in the Middle East. (In one extreme case this year, an Iranian cleric blamed women for his country’s earthquakes.) Israel has developed, and continues to do so, as an open society. After all, Dr Flug herself can recall how her family left the anti-Semitism of Poland in the early 1950s and she grew up in poverty in Jerusalem.

And today? It was the Huffington Post which posed an interesting question just recently: “Guess Who’s Valedictorian at Israel’s Top Medical School?”

It’s a 27-year-old stereotype-buster: a charming, feminist, smart, open-minded and observant Islamic woman named Mais Ali-Saleh who grew up in a small village outside of Nazareth, in Israel’s Galilee.

“If it’s not broken, why fix it?” Right or wrong in business?

20 October 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Several times a year, I will hear business owners quote back at me ‘if it is not broken, why fix it?’. They have a point. And yet……….

ITEM ONE: Earlier this summer, a client of mine broke off their business mentoring sessions earlier than initially planned, because life was all right. Money was coming in. Two weeks ago, they phoned me back – times had changed and they required a back up strategy. How could I help? Quelle surprise I thought to myself.

ITEM TWO: A different surprise, ex football manager supremo, Sir Alex Ferguson, is the lead story in this month’s edition of the Harvard Business Review. Ferguson is arguably the most successful manager ever in the history of this global sport, and this fascinating study analyses his achievements from 8 different perspectives. An underlying theme is that of “change” – accepting change, encouraging change, looking for new improvements…….even when you have built a winning team.

For me, that message also applies to your business model.

  • As a young teenage, I remember discussing with my late father as to why he did not look at new revenue streams. One of his excuses was that his current lines were doing OK. However those good days were already at their peak.
  • Consider those banks like Lehman Brothers that collapsed with the credit crisis, still less than a decade ago, because they could not recognize the dangers opening up ahead.
  • Another client of mine came to me, complaining of poor sales. How could I help? I encouraged the company to undertake a simple market survey, which revealed that the core business had simply shrunk without the owners being prepared to acknowledge the fact.

Keeping things simple and not wishing to tinker with anything that works are solid, natural instincts. However, any business leader has to look beyond the present in order to understand how they will survive in the future. For those who are afraid of change, that challenge can be too much, both on an intellectual and emotional level.

Grit, procrastination and the Jerusalem Syndrome

18 October 2013
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

I was meeting my client in central Jerusalem. She proceeded to outline a series of excuses as to why she had not began to execute her business plan. Bottom line – problems with the kids had provided her with the perfect excuse to have cake and coffee with friends rather than to move ahead commercially.

So, like any business mentor, I refused to accept this procrastination and tested the client. Was she aware of the implications of not getting done what they needed to do? Again, cutting to the chase: no project means no income, which means no presents for the kids. Could she internalize that message?  Or would the Jerusalem Syndrome win through and her painful cycle of feelings roll around once more?

One blogger describes this ‘antidote’ as the “so that methodology”. In other words, we need to understand that we do something specific “so that”…etc etc. Something good should result.

On an intellectual level, we all know that procrastination is stupid, if not financially dangerous. An academic qualification does not offer automatic success in commerce. It is interesting to note that in Israel, which still averages over 3% annual economic growth, only 36% of the adult population has a university degree. By way of comparison, in Britain and Japan, 55% and 44% respectively have higher qualifications, but their economies are struggling.

However, there is another factor to consider when moving through a work project – “grit”. Just recently, I had the fascinating privilege to read a review of the work of Angela Duckworth. Maths’ teacher turned child psychologist, she discovered in her early research that “students’ self-discipline scores were far better predictors of their academic performance than their IQ scores.”

To cut a long story short, Duckworth has come up with the “grit scale”, which is increasingly showing the likelihood of the success of a student (or worker) in a given situation. For example:

The military has developed its own complex evaluation, called the whole candidate score, to judge incoming cadets and predict which of them will survive the demands of West Point; it includes academic grades, a gauge of physical fitness, and a leadership potential score. But the more accurate predictor of which cadets persisted in Beast Barracks and which ones dropped out turned out to be Duckworth’s simple little twelve-item grit questionnaire.

Back to my client in Jerusalem: They have knuckled down over the past few days, and suddenly they are motoring along, with far less time for cake tasting and additional calories.

Client Feedback

"Michael transformed the way I think and approach working, and also how to monetize my social media and communal projects."

CEO of digital media company

"Michael helped my high tech company take off."

CEO of clean energy start up

"Michael has been an invaluable resource to me throughout all of the steps of starting up my business."

Art Studio owner

“Working with Michael Horesh is like having root canal treatment, marriage counselling and business coaching all rolled into one, successfully.”

CEO of digital media company
CEO of clean energy start up
Art Studio owner