Israel Archives - Page 52 of 67 - Michael Horesh Business Coach and Mentor

23 May 2010

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Categories: Business, Israel

It took me 2 minutes to realise that Kibbutz Yodvata is not your regular kibbutz, usually associated with green lawns and orange trees. Located about 80 kilometers north of the port of Eilat, it is surrounded by the dust and the sand of the Negev desert. And yet this is a wonderful place for farming!

First our guide showed us the pomela and pomegranate crops, cultivated using desalinated water brought up from the Eilat coastline. Neat, and these fruits are now lucratively grown out of season.

At the back of the kibbutz, we drove by the border with Jordan. We saw a locked gate and on the other side a lightly armed Hashemite presence. It seems that the soldier was waiting to escort an Israeli team to teach Jordanian Bedouin how to work the terrain. This cooperation has been going on for around 15 years, and the results can be seen in the new crops.

On to the cows. 10% of their biomass is reused to generate electricity for the milking plant. And as we were finishing our tour, we saw the latest installation in solar energy being fitted.

Stuck in the middle of nowhere, the kibbutz has around 300 families, and is growing. Swimming pool. Brilliant milk products. A real life desert oasis and thriving.

21 May 2010

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Categories: Business, Israel

When you write about Israel and its economy, every now and again you are see the wierd, which often comes attached a powerful commercial theme.

This week, Jews around the world celebrated the Festival of Shavuot (Pentecost). One of the customs is to eat milk products on the day. Our house was duly swamped with cheese cakes, creme brulee, quiches and other tasty goodies.

In parallel, the media gleefully reported that “Israeli cow yields 11,292 liters – almost double amount produced by European cows”. It seems that Israel may not have large herds or massive grazing areas. It may not be known for Grade A steaks. But the country has learnt how to “butter up” mama cow.

Clearly, there is something in the earth of the Holy Land. Even the cows under Barak Obama yield on average 20% less than those surrounded by rabbis and other priests.

For many in the world, the cow has an important religious status. In Israel, it is the sign of the country’s largest confectionary manufacturer, Strauss-Elite. It is a brand that kids grow up with and the company is unable to change it.

Israel has long been considered a pioneer in agricultural technology, and not just drip irrigation. It has developed leading software for herd management and for diaries. Many kibbutzim are learning to use biomass from their farms and convert it into electricity.

I never thought about it in this context, but it would appear that Israel possesses some of the sweetest cows in the world.

20 May 2010

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Categories: Business, Israel

IMD is a leading business school, based in Switzerland. Every year, it publishes a world competitiveness survey. Based on over 300 factors, it historically places the USA at the top of the tree.

The survey’s author, Professor Stefan Garelli, notes that the study accounts for improving performance as well as damage control in light of events such as the credit crisis. So, maybe, it is no surprise to see Singapore and Hong Kong frogleap the American giant in the table.

And if competitiveness is all about resilience, then we can begin to understand Israel’s jump forward to seventeenth place. Israel was one of the first country’s to come through the recession.

Drilling down in the statistics, Israel comes top of several categories; performance under stressful conditions, the role of the central bank, relative expenditure on r&d, and training personnel. The latter two elements feed into the equation as to why Israel has been so successful at innovation.

Israel is now 17th out of the 58 leading countries analysed. That means that there are still several areas in which it can improve. Transparency must be one of those. The rules of the OECD, which Israel has just joined, should help to ensure a change in that aspect.

Nevertheless, the survey adds to the increasing evidence as to why Israel is an excellent opportunity for new investment.

18 May 2010

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Categories: Business, Israel

A couple of weeks ago, I met up with Jonathan Gabay. His company, Brand Forensics, has a strong track record in branding leading household names, and not just consumer products.

Branding is not just about positioning. It shows your potential why you are strong and why people will want to be associated with you. And thus, Jonathan’s work increasingly takes him in to the offices of politicians.

Jonathan wrote a poignant summary of the recent UK elections. As the campaign became focused on “politically correct hype”, three party leaders vied for the trust of the public. And all were found wanting. When each one could have pressed home an advantage, not one politician emerged personally triumphant. For all their advisers, financial backing and experience, what did they miss?

Now flip back to early April and the plane crash, which decimated Poland’s leadership. Writing in the Financial Times, Stefan Stern noted that plane crashes have occurred when “macho pilots could not or would not listen to advice, or ones where rigid hierarchy, deference and emotional chilliness led to vital messages not getting through”. Hmm!

In Israel, ineffective coalition governments continue to plague the population. In the past few months alone, the country’s so-called leaders have changed their minds frequently. For example, the site of a new hospital has New housing projects in East Jerusalem have stop-started during 2010. The Interior Minister has backtracked on refusing to let in to the country two young twins, whose parents do not have suitable documentation. etc etc.

8 Traits Of Ineffective Leadership is a wonderful article that summarises all these issues. The author, Mike Myatt, considers poor character, track record, communication skills, selfishness, lack of concern, follow through, and narrow mindedness. Together, what do you get?

The moral of this story is leaders need to be honest, have a demonstrated track record of success, be excellent communicators, place an emphasis on serving those they lead, be fluid in approach, have laser focus, and a bias toward action.…

In his book “Make a difference with your marketing”, Jonathan Gabay talks about marketing managers – be they in the political or corporate world – needing to act as business managers, whose talents will effectively control a portfolio of resources. What talents? Link back to Myatt’s list.

You have to wonder why world politicans continue to ignore some obvious lessons in leadership, and then wonder nobody wants to vote for them.

17 May 2010

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Categories: Business, Israel

Every banker is asking themselves how the knock-on effect of the demise of the Greek economy will impact on their own economy. For Israel, a 90 minute flight away, that same question is just as pertinent.

Let’s get one thing straight from the outset. The countries may share the Mediterranean sea and a love of humous. Spain and Portugal may not be far away either. But, as I wrote last week, the structure of Israel’s financial system is very different and much stronger.

That said, there are some early indications of a negative fall out. You only have to look at the shekel, which has appreciated 6-7% against the Euro and Sterling over the last 30 days. Bad news for local exporters.

Both amongst the manufacturers and exporters organisations, there is deep concern. Financial markets are on the defensive. And such a feeling of uncertainty is often reflected in people’s hesitation to buy goods and services. Potentially more bad news.

Israeli companies have several options. One is to explore new markets. At Expo 2010, Finance Minister, Steinitz, signed a wide ranging financial agreement with his Chinese counterpart. I have lost track of my friends who have made commercial trips to India over the last 12 months. Foreign Minister Lieberman was in Japan last week.

In contrast, the domestic market is not necessarily available to local manufacturers. It is often considered less profitable, where terms of credit are very stiff. Further, statistics released yesterday reveal that the consumer upsurge at the end of 2009 continued by only 1.6% in the first quarter of 2010.

Where to next? The stability of the Israel’s fiscal and monetary policy indicate that although the Mediterranean waters may be choppy, the long term should be a smooth sail.

11 May 2010

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Categories: Business, Israel

In June 2010, Israel will become a full member of the OECD. Prime Minister, Netanyahu, led the self-congratulations.

For the proverbial average person in the street, nothing has changed. There will be no bonus in next month’s wage packet. Unemployment will not dip a percentage point overnight. However, for the foreign investor, a thundering wake up call has gone out from the Holy Land. So what really is the news?

In the past few months, there have been several discussions on the financial newswires about Israel – its use of innovation and a centre for economic growth. Even during last week’s Greek crisis, Israeli financial markets reacted with relative calm. A catch phrase in recent years is that Israel has discovered the path to economic stability despite diplomatic and military strife – elements that normally restrict any country’s development.

It is relatively easy to sing Israel’s praises; the excellent reputation of the central bank under Stnaley Fischer, the successes in communications and cleantech, the number of patents or even nobel prize winners per capita. However, over the next 3 to 5 years, it seems that some key fundamentals of the Israeli economy and its financial markets are about to undergo a significant overhaul for the better.

Yes, joining the OECD will expose Israel to new lines of credit and on better terms. In addition, more international tenders will be available for bids from Israeli companies. Israel’s credit rating should improve. It can be assumed that together, these moves will allow the government to finance more public sector projects without increasing the budget deficit.

Nice, but not amazingly wowish on its own.

Now add in factor number two: The Tel Aviv Stock Exchange is about to be accepted as a member of the leading group of international share centres. Over time, it is expected that this will ensure a greater interest than before in Israeli shares, which converts into more jobs, better infrastructure, exports, and other economic benefits.

The icing on the cake is the energy sector. Over the coming decade, Israel will cease to import natural gas. It is conceivable that the reserves are high enough to allow for exports. (It is too early to talk about new oil reserves). The off-shore drillings will decisively alter Israel’s balance of payments, again releasing resources to other sectors such as education and health.

Even volcanic ash should not stop wave of new investors visiting Jerusalem and Tel Aviv in the immediate future.

10 May 2010

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Categories: Business, Israel, Palestinians

Governments around the world are berated for not helping small businesses, which statistically generate over 90% of a typical economy’s wealth. And it is only a further small step for politicians to ignore the needs of minority groupings.

In the past few months, Israel has launched a major campaign to tackle this problem. It has been spearheaded by the Export Institute, an arm of the Ministry of Industry.

The Arab Business Conference in Nazereth proved to be a launching pad for a multi year strategy, supported by a budget of hundreds of million of shekels. The fund will provide consultancy services, training and marketing facilities to export focussed firms in the Arab sector. Significantly, the conference was attended by both Palestinians and Israeli Arabs.

On its own, this strategy will not be enough to drive forward the Arab economy. However, to be fair, Israel has invested considerable resources in the past year in assisting the Palestinian economy. A 5 chapter report from the Ministry of Foreign Affairs details some of the recent measures taken: –

For example, in 2009, trade between the two areas increased by nearly 3%, despite the recession. Over 5% more Palestinians were employed in Israel. Several crossing points, such as Gilboah-Jalamah, have been upgraded, facilitating the transfer of goods. Numerous water disposal and / or sewage improvement projects were implemented. The list of public and commercial initiatives is extensive.

Of equal significance is that despite the upsurge in terrorist activity in early 2010, these projects continue to operate and have even been extended. For example, more commercial crossing points are being developed, such as on the 443 road between Jerusalem and Modi’in.

Argue that this is not enough, and you may have a point. However, these are excellent starting points. They need to be supported by similar efforts on the Palestinian side. They serve as a lesson for many other economies around the world.

6 May 2010

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Categories: Business, Israel, Palestinians

According to the World Bank, the Palestinian economy is booming. During 2009, growth in the West Bank reached 8%, although Hamas controlled Gaza saw a more modest development of 1%.

Much of this change has been associated with the reduction in violence directed against Israel. Many remember how at the beginning of the Intifada, 125,000 Palestinian labourers lost their salaries overnight, as Israel was forced to close the border with Gaza. And these were relatively high value jobs, a shortfall which has never been fully made up.

In parallel, Israel’s economy is also doing well today. Yuval Steinitz, the Finance Minister, is looking at 4% growth in 2010. Andrew Stanley, head of the EU Commission in Israel, “said that he is fascinated by the dynamics and resilience of the Israeli economy, which proved to be one of the markets to note the fastest recovery from the global financial crisis.”

It has been long accepted by all sides of the peace process that Israel will have to help and encourage the Palestinian economy in years to come. Clearly, it has the capacity to do that.

But then comes a catch! The Palestinian Authority (PA) has begun to lead a campaign which boycotts Israeli products, specifically those made in the West Bank.

This policy was kicked off with the official support of Prime Minister Fayyad, back in January 2010. He attended a televised burning of Israeli products, ironically close to the anniversary commemorating Kristallnacht.

This week, the campaign was taken into Arab towns inside Israel, which are also being encouraged not to buy Israeli products.

And there are now moves by the PA to stop all Palestinians working on what are determined as settlements – effecting roughly 25,000 people – and their dependents…and those who they buy goods from.

And that’s the point. It sounds wonderfully politically correct not to “support the enemy”. But there is no spare capacity inside the Palestinian territories to take up the slack. Just look at the Gaza debacle mentioned above. In an agricultural economy with a small population, the fall out will only be painfull.

None of this furthers the cause of peace. If Fayyad, his cabinet, Hamas and all the rest really want a long term relationship with Israel, it is time for the rhetoric of violence to be replaced by ploughshares. Otherwise, thousands of newly poverty-struck Palestinians will be driven back to hidden stocks of weapons.

Here we go again?

4 May 2010

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Categories: Business, Israel

Yesterday, I came across a fascinating and professional piece of writing: “10 Reasons to invest in Israel“.

The author detailed Israel’s strong trading performance, a banking sector only marginally exposed to the credit crunch, an economy that imports raw materials and then exports high value finished items, a solid stock market, and much more.

All very rosy. So who will this information appeal to?

This week, I attended a seminar in Tel Aviv, hosted by the Office of the Chief Scientist (OCS). The specific department. ISERD, is responsible for coordinating the efforts of Israeli companies, who are searching for European commercial partners.

In the past year alone, another 34 local companies have entered European consortiums. The net value of these ventures over three years is close to €300 million.

What does Israel have to offer? In 90% of the cases, the answer is the same – technology. Israel is a power house for developing new ideas. Lack of resources – manpower, finance, connections – means that Israelis find it difficult to implement and market. However. inventing en masse is what comes naturally to the country.

That is what outside strategic partners are often looking for in the Holy Land. And the previously mentioned report means that the economic background for investing is stable, thus reducing the level of potential risk involved.

In a separate section of the OCS is “Tnufa”. This team has established a relationship with nearly 20 multinationals, such as Renault, Oracle, GE and Microsoft. They are deliberately seeking new ideas, waiting to be commercialised.

That is no one-off fact. The government has just announced that it intends to continue with its policy of reducing taxes in 2011, including corporation tax.

3 May 2010

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Categories: Business, Israel

Greece and Israel share several commonalities: same area of the Mediterranean, similar historical struggles in late 1940s, an average monthly wage around EU1,400, and football teams that often promise more than they deliver.

Economically, Israel has long ago moved ahead. The Holyland has abandoned many (not all) of the anomalies that plague the Greek Treasury today. For example, there are no special tax breaks for singles. The unions have an important role, but they do not take their opposition to the streets in the form of violence.

Most analysts agree that the direct fall out from the Greek bail out will be relatively limited. Israeli banks are thought to have a minimal exposure of around US$20 million. Annual exports to Greece barely top the US$300 million figure. Thus, at the first level, the damage to Israel will be targeted and limited. And similar stats apply to the commercial relationships with Portugal.

Of more concern are the indirect or knock-on effects. Three specific issues come to mind.

If the Euro collapses, then the shekel will appreciate in comparison, which will make Israeli exports less attractive to Europeans. Ouch! So far, the change has not been significant.
On a parallel theme, if the European economy takes a hit – and there are continued concerns about the Spanish, Portuguese and even the British economies – Israeli goods and services will again find overseas markets harder to preserve.

Exports of goods to Europe, not including diamonds, account for about 29% of all exports, according to the Israel Export Institute. Exports of goods to Europe, not including diamonds, for the first three months of 2010 were 31% of total exports, down from 33% during the same period in 2009.

3. And there is the psychological element, which cannot be predicted. Investments are often determined by confidence or a feel-good factor. With 3 countries around the Med facing the economic heat this summer, outsiders may not be willing to rush into the Israeli stock market or its high tech sector. Punished for events beyond your control?

2 May 2010

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Categories: Business, Israel

You would have thought that a global credit crunch would have ensured that less people would want to start up a new business. In Australia, often associated with sun and sport, a strong work ethic, backed by an investment of long hours, has led to a glut of new, successful enterprises. And an increasing number are run by women.

This theme of determination is often seen in founders of companies, which have prospered where “ordinarily” they should never have got off the ground. I have just read an article about Dorin Frankfurt. Now in her mid 50s, she left Israel 35 years ago to study clothing design in France. When she returned, nobody would employ her.

Here’s the deal. When faced with despair, DF decided to make her own clothes and sell them herself. (She excelled in female fashion wear). And you can bet that no venture capitalist sunk money into her initial operations. When months previously potential employers had snubbed her, the first shop began to flourish.

A decade into operations, the Israeli government ceased protecting the local textile industry and the market was saturated with imports from the Far East. DF carried on. Even today, when most Israeli companies have moved their sewing operations to Egypt, Jordan and China, she continues to supply her 25 shops from her Tel Aviv based factory,

The interview with DF reveals just how hard-headed she has been. For example, she was one of the first people in Israel to publicise charities, helping those suffering from AIDS. She chastises governments for not providing help to unemployed outside the hightech sector. A lady without obvious fears.

And maybe that’s the point. Be you an Australian in 2010, an Israeli in the 1970s, or even Henry Ford a 100 years ago, what seems to link all these people is a lack of panic when trying something new. That is what affords them the ability (and luxury) and go beyond established frontiers. That is often the origin of their success.

28 April 2010

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Categories: Business, Israel

A few months back, I attended a seminar on “engaging employees”. How can a manager obtain the best from his staff? What will motivate them?

I have written extensively of the need to allow a worker to develop in their own space. Payment and smiles are not the only ingredients towards securing a productive employee.

A new article from the Harvard Business Review asks the question “how to keep your top talent”, especially once you have invested in providing them an expensive training programme. Surely, that should be incentive enough?

Apparently, one of the key mistakes of corporations is to assume that “high flyers” are the happy ones. Not so. And when they leave, it can be painful and expensive. In fact, the cost can be a double whammy. Carnegie estimates that it often takes up to 24 months to replace leading members of staff, which then impacts on work flows and revenue.

There is a flip side to this coin. Part of the fall out of the credit crunch has been a slow move towards appraising older workers. Arguably, the recession was partially caused by the enthusiasm of youth. It is an open question if a wiser and more senior commercial leadership in several countries would have led to a different set of circumstances.

In one of today’s economic newspapers in Israel, there is a major feature on how employers are reconsidering the benefits of utilising 50 year olds and upwards. Not so quick, but they give you a solid, quality performance, often for slightly more money.

Is that enough motivation for the manager, who does he still just want to look at the direct costs?

25 April 2010

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Categories: Business, Israel

Crumplers is the wonder “entrepreneur” case study that everybody loves to read about. The founders dropped out of school, started an initial business that outsmarted the mega players, were forced out by a legality, and have moved on to something even bigger.

Crumplers manufacture and sell really good bags, specifically courrier bags. Nothing special there you may think, except for their handsome profits.

And that’s the point. Walk down your average high street, and you will find a least one shop selling handbags and similar attire. And you never find the one you want. Just a coincidence?

Daniel Citron almost won an internet competition worth US$15,000 to set up a new collection of bags. Yup, he too had seen an opening in the market.

A couple of months back, a client was looking for a bag to hand out at a conference she was organising in Jerusalem. Nothing complicated, just something presentable and with a logo. However, it took numerous phone calls and web searches and discussions to find a quality item, of the right size, practical, which did not come with a glaring bring pink backing.

What drives the Crumplers’ team? I do not know them personally, but let’s return momentarily to one of my favourite gurus, Dr Robert Brookes. His latest considerations on motivation is a must read and provides us with some answers. Remember, despite their talents, these people left school with few qualifications, yet Brookes posits that: –

I have found that in both the business world and in schools, autonomy helps to create “motivating environments.” Affording employees, faculty, and/or students some choice does not minimize the authority of supervisors or managers. Instead I believe it enhances a sense of ownership, responsibility, and accountability in all members of that environment. As I have expressed in previous writings, intrinsic motivation is enriched when individuals are provided with opportunities to have their voices heard. So-called “top-down direction” frequently triggers feelings of resentment, lessening any possible satisfaction or joy associated with the activity.

Brookes concludes with a very powerful comment from a colleague:

And we know that the richest experiences in our lives aren’t when we’re clamoring for validation from others, but when we’re listening to our own voice—doing something that matters, doing it well, and doing it in the service of a cause bigger than ourselves.

All Crumplers et al want to do is to help people, and they have shown why they are good at it.

22 April 2010

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Categories: Business, Israel

Rafa is one of Israel’s oldest pharma companies. This week, I noticed a new sign on a developmental complex in Jerusalem, denoting where the company will build a new US$35m facility for 130 workers.

Just down the road is the Bank of Israel. This is another institution in a happy mood. Its revised predictions for 2010 and 2011 are a metaphor for optimism.

Growth of 3.7%, rising to 4.0% in 2011. Standard of living; 9.2% and 7.4%. Unemployment falling to 6.7%. And exports increasing at a steady 4.5%.

There are concerns if the stock market is too high and if the price of real estate is reflecting a bubble. But neither of these issues undermine basic economic fundamentals.

Next to Rafa is a new biotech centre, close to completion. Obama may not be pleased with Israel’s politicians, but the economy is pressing on regardless.

19 April 2010

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Categories: Business, Israel

This year’s Independence Day in Israel coincides with the “anniversary” of Herr Hitler’s birthday.

An irony, perhaps. Where as the failed Austrian painter talked of a Reich lasting for a thousand years, Israel’s Third Republic, despite a constant and continuing existential threat, is in its seventh decade. I will let others evaluate all the reasons for the country’s success, but one of them is the economy.

In the summer of 1986, Israel abandoned the mechanisms of protectionism that had served the country so well during its first traumatic years. It is often forgotten that when Israel was forced in to the Six day War of 1967, it did so emerging from one its deepest recessions.

Leap forward to 2010, and we have an economy based on innovation. The country’s hightech sector is at the forefront of the global cleantech revolution. Many analysts argue that the world is in the middle of a new industrial revolution in communications. Maybe, and at any telecom conference, you will find dozens of Israeli companies.

This push towards new social wealth is not limited to the sciences. I am working with a start up which has developed a prototype to replace printed cheque books. And come Christmas December 2010, you will see Israeli chocs on sale in Wal-Mart.

Israel’s economic fundamentals are sound. Adjusted figures show that the economy grew at an annual rate of 4.8% in the last quarter of 2009, which only India and China could beat.

Israel’s population stands at just under 7.6 milion people. Roughly 25% are not Jewish. Despite the real threats of Hamas, Hizbollah et al, the continuing need to incorporate all – new immigrants, minority sectors, hundreds of refugees from Sudan, etc – is a need that works in parallel with the theme of innovation.

Yes, Israel is often criticised by others for not doing enough to help with integration. There is justice in some of those comments, although I have yet to find a perfect county that can preach without fear of being accused of hypocrisy. In parallel, I can proudly say that the importance of integrating all is a strong feature throughout much of society.

Look closely and you will see how innovation feeds off this ability to use the talents of all. The enemies of the people of Israel – from Pharoah to Hitler and on to the present rulers of Iran – have repeatedly tried to eliminate such freedoms and failed. Here’s to the next 62 years, and many more after that.

18 April 2010

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Categories: Business, Israel

Last week, I reread the 1990s classic: “who moved my cheese”. Four mice grapple with a new situation; having been used to a ready supply of quality cheese, the source dried up and each one had to work out what to do next.

Ever since the beginning of the credit crunch, I have been singing the praises of the Israeli economy and its stock market. The former is heading for over 3% growth this year. And investors have seen the main index climb over 110%, reaching a new record high this month. In May, the Tel Aviv Stock Exchange (TASE) moves over to the group of developed countries.

The Israeli economy is doing well. Many of the correct economic fundamentals are in place. Even interest rates are gradually returning to realistic levels. Yet, in the same breath, I must repeat what I have mentioned back in November 2009. The new status for TASE will not automatically bring an immediate bonus to holders of Israeli stocks and shares.

Until now, Israel shares have been a great bet if you wanted to hold shares in the group of emerging economies. Now Israeli stocks are competing with the big boys, and it represents a much small portion of a signficantly bigger pie. To quote a recent analysis:

Market sources have long warned of an exodus by foreign investors from the TASE and subsequent delays by new investors not rushing to get in after the upgrade on May 26.

(Meanwhile…) local investors are buying. Foreign investors are selling huge quantities and the public is buying, but this can’t go on, and at some point it will come crashing down. Everyone in the market knows this and they’re talking about it behind the scenes, but they’re keeping quiet outside.”

What is called for is not panic, but a reality check – an adjusted approach. Anything wrong with that simple advice?

Go back to Dr Spencer Johnson, the author of the cheesy book. His preface includes the truism: “The best laid schemes o’ mice and men often go astray”…….written 250 years ago by Robert Burns.

How long does it take for people to listen, and learn?

16 April 2010

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Categories: Business, Israel

Most of us want to be successful, but are never sure what that really means or how to get there. For Maria Bartiromo, CNBC’s top female anchor, one key ingredient is self-knowledge, “…..the ability to define for yourself what shape your life will take, and how you will pursue success.”

Just recently, I have been looking at successful start ups, and what allows them to overcome the multiple obstacles in their path. Australia’s Snowy Mountains Cookies is one such example. The founders looked for an all-year round product that would also allow a young mother time off for family duties.

Significantly, they quickly identified a new need in the biscuit market, left open by one of the big guys. They plugged the gap by creating a quality product. The result is that after three years of operation, they have a client list including some of the continent’s biggest names.

Lone Tree Brewery also makes for a wonderful case study. Whilst I admit to a certain level of bias, because my colleague, Dorit Kosto, and I have been associated with the progress of the team, I believe that many entrepreneurs can learn from their experience.

A little over a year ago, we sat down with four people, who were very excited about creating a boutique brewery. Their philosophy included encouraging employment and tourism in a relatively undeveloped part of Israel. Each had qualifications in their own field. They talked with knowledge about raw ingredients and production processes. They came to us with a file, full of details.

What was missing was an answer to the “what next” question.

And this is where they got smart. First, they sought help. Second, they learned to establish for themselves a realistic set of targets; timelines, budgets, task allocation. Third, while sticking to the overall dream, they moved from trying to succeed big overnight and began to concentrate on implementing a series of small, achievable tasks.

Dorit and I met up with Lone Tree Brewery today at their new premises. No, it is not a large factory, but they are producing. And they have room to grow. One of the founders has had to leave the group, but the three remaining members seem to have very clear roles. They were hosting an open-house tasting session. No fancy pre-advertising campaign, but bottles of beer were being sold to many happy customers.

Speak to our heros, and all are looking ahead. Pricing and marketing, investment, marketing strategy – again, they want to define and to break down the next issues into a series of targets, which fit into a realistic timetable. Interestingly, they seem to be setting a high price in order to position themselves as a quality product.

Is that a risk? Maybe, but a taste of the beers on offer more than justifies the initial strategy.

14 April 2010

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Categories: Business, Israel

Founded in 1953, the TASE will join the grouping of developed markets in May 2010. This is a very positive step for the country’s economic development.

There are 614 companies listed in Tel Aviv. 53 are cross listed overseas. The current valuation of bonds and equities combined is approx US$400 billion.

2010 has started well for Israel’s stock market. Following the credit crunch, the exchange is now back at its all time high. Average daily volume have returned to 2008 levels. The finance sector now comprises just 25% of the total shares, just overtaken by telecom and technology related companies.

Israel is about to celebrate its 62 annual Independence Day, and this commercial achievement is something to shout about with pride.

12 April 2010

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Categories: Business, Israel

Bezeq is Israel’s largest telecommunication company. Privatised, it still has a large control over land lines and other services. For example, my router is from Bezeq.

I wanted to work from home this morning. My refreshingly strong coffee soon lost its taste, when I realised that the internet was down. The usual switching on and off of dusty buttons led to nothing. I phoned up Bezeq.

I had a very pleasant 23 minute conversation with a young man – let’s call him B1 – who tried to help. He told me where to enter lots of numbers, to connect, do double clicks and to stand on my head. But nothing worked.

So, I could either wait 3 days for free delivery of a new router or get one myself. So, off I drove, straight into several lingering traffic jams. One hour later, I was back home. I plugged it all in, I phoned up the nice chappies on the help line, and then I noticed….nothing. Yup, it was “nothing”.

You see, however I played with the new router, there were no lights on the friendly machine. By the way, it’s a lovely box. They have changed the colour from black to white, evidently to express the purity of the service. In fact B2 was really pleased for me. It seemed that I was one of the very lucky few to obtain a dud router.

Could he register a complaint in my name? No, I had to phone another number. So left with the choices of waiting 3 days, driving off again to the Bezeq store or drinking a bottle of whiskey, I chose option number 2, just.

With no traffic jams and having found a new road, I was there in record time. Luck again, heh, and that was after I had filled up with petrol on the way. Keeping Bezeq’s help line busy is a heavy strain on my darling car.

I received another white router, which I insisted they tested for electricity. I do learn quickly. In fact, I was giving a unit in new packaging. Such an honour to be able to work with Bezeq.

Could I register a complaint, I asked rather delicately? After all, this is a Bezeq shop, located in the building of the national offices. Surely, if I use my mobile to phone a special number.

Whistling to myself and trying to avoid the signs to the local loony bin, off I raced to the car, smiling. I suppose the people around did look somewhat concerned. My teeth were protruding over some extremely raw lips. Actually, there were not much flesh left, but I was trying to smile through it all. I really was

Back home. On the line to B3, a most delightfully helpful person, he really is. We sailed through the procedure together. Press enter, he told me. Is the internet button now flashing? No, says me. I thought not, said B3.

I tell you what was lit up; the red danger sign inside my head. Just let me check something, says B3, who passed me on to Bezeq’s latest piece of boring die-while-you-wait musac. He returned in a jiffy to tell me with great gusto that he had detected a problem on my line. This will take up to 2 hours to fix.

B3 would not be drawn if the original router was faulty. He was most sorry to hear that I had already spent 4 hours on cordially chatting to half of Bezeq’s support group. And as for a complaint, he suggested something, but my yawn hid his answer.

With nothing left to do, I phoned 166, the complaints line. I pressed 1 for Hebrew, 2 to confirm my phone line, and several other numbers until I most inconveniently got through to B4, who could handle the issue.

She took my details. And then: “One minute sir, could you hold a moment. There is a fault with the system.” A few seconds later I heard her ask me to call back in half an hour, as the fault apparently was a very annoying fault, that would not go away – much like Bezeq’s management I thought to myself.

Could B4 call me back, when she was ready? No, that was against procedures, evidently designed so as not to help clients with a complaint! I assume that B4 heard the click, as I put the phone down.

The two hours did eventually pass by. Nothing happened. When I called back and spoke to B5, I was told that the problem was fixed, but Bezeq policy is not to call you back and confirm. But Mrs B5, I plead, my internet is still not working. Oh, and B5 discovered another problem, which required a technician to be sent out.

B5 calmly told me that a technician would turn up tomorrow, and I told her in a very uncalm manner that he was coming today. “Well, I don’t think you need to use that tone of voice,” responded B5.

In fact, I did have to. And I screamed again, several times, in order to get a manager, who spent over an hour with me and a rep from the server company. Together, nearly 9 hours after the initial panic, they sorted out the problem.

For the record, it is probable that the router was fine, but that there was a fault on the line. Once the router had been exchanged, everybody forgot that this would render as useless an existing password. Simple, no?

And also for the record, it is very probable that I will be moving to another internet supplier. Do you want to know why?

Bezeq also failed to hear that I am a licensed business mentor with local and international clients. Bezeq is not one of my customers, but now features on this blog site. I invites others to comment about Bezeq or to add their stories about so-called customer support from large organizations.

11 April 2010

1 Comment

Categories: Israel

I love cricket. I am not very good at the game. I have not played since leaving school. But I follow the sport avidly.

However, latching on to the matches is just as difficult as participating. You see, living in Israel, we do not receive TV coverage of the games. Phrases like “overs. wicket or silly mid off” do not readily translate in to Hebrew. And most Israelis like immediate sports, which ignore the patience of cricket’s 4 day efforts.

BUT: Last Friday, I found myself in very surreal surroundings. In the heart of Tel Aviv, I was looking out on a game of cricket – yup 22 souls dressed in white (well, mainly white) could be seen chasing a small red ball. The Ra’anana squad was having its first full work out of the season.

Israelis looked on bemused. Why were we not following the rules on baseball? The pitch was plastic matting, allowing bounce to vary dramatically from “leap up suddenly” to “skid through”. And the surroundings did not allow for a village pub, but a main road and Tel Aviv’s high tech centre. Nevertheless, cricket it was.

Players came from multitude of backgrounds and ages. Matt is a New Yorker, who is studying engineering in Haifa and has been bitten by the “English” virus. We were graced with the presence of a career diplomat from Jerusalem, proudly sporting his club cap. Accents betrayed origins ranging from London to Durban and over to Melbourne, via Mumbai.

I was disappointed that there were no cucumber sandwiches on offer at the break. I was secretly hoping for some freshly cut delights without crusts, washed down by traditional stewed tea. But the Australians had turned up with their BBQ, and I had to accept that this was the Middle East. Burgers it was to be.

Some of the guys are serious players and have made it into the national squad. In fact the Israeli team is now in Europe’s second division. This July, Guernsey will host a competition, which will also feature France and Gibraltar amongst others.

My own performance was mixed. I scored a few runs, but more than a few were taken off my own bowling. I had fun. I was playing a game that I had put to one side at school, because it had clashed with my religious principles. The big matches were held on Saturday, my Sabbath. Here, in Israel, I can practice my faith and worship my sport with equal freedom.

Yes, the muscles ached the next day. As I was reading the weekend newspapers, the value of this “choice” was brought home to me very directly. I noticed that tomorrow, Monday, is Holocaust Day in Israel. Hatred, an inability to recognise that difference is what makes the beauty of mankind, led to the deliberate slaughter of six million of my fellow Jews.

Guernsey is part of Channel Islands, the one part of Britain occupied during the Second World War. Three Jewish women were deported from there all the way to Auschwitz, and did not return. Second Division or not, you bet I will be cheering on Israel come July.

Pages

How cleantech works in the desert

Fat, sweet cows in the Holy Land

Being competitive globally – the Israeli story

The Brit, Pole and Israeli – lessons in ineffective leadership

Israel and a Greek tragedy

Israel: a long term investment prospect

Promoting minority economic sectors: Israeli case study

Are Palestinians losing the economic peace?

Who invests in Israel and why

Ripple effects of Greek failure reach Israel

Succeeding in business when you should have failed

Which employee do you want to keep?

Bags and motivated entrepreneurs

Rosy economic forecast for Israel

Israel’s economy celebrates 62 years of independence

Cheesy investments on Tel Aviv Stock Exchange

Raise your glass to successful start ups

A big year for the Tel Aviv Stock Exchange

When Bezeq fails to listen

How cricket helped me gain revenge over Hitler

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