Just under a decade ago, my wife and I visited Prague.

A beautiful, fascinating city, I recall that it had around six million visitors a year. One key site was the Jewish Quarter and its rich history. At that time, Israel’s tourism industry had posted a new ‘high’ of about 2.5 million tourists annually. In other words, ironically more foreigners were exposed to Jewish cultural interests via The Czech Republic than from the Holy Land itself.

Jump forward to November 2018. Yesterday, I attended a seminar hosted by the Israeli Tourism Ministry. In attendance were several prominent business mentors and coaches such as myself, listening to the Director General (in picture), senior academics in the profession and others.

The message? Times are a changing. The ministry is supporting a massive programme of building hotel rooms around the country. Tourists – especially those with deep pockets – are flocking in. This year is likely to conclude with about 4 million visitors for the first time.

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So what has happened whereby that last month alone there were 60,000 extra visitors compared to October 2017?

A much heralded stat is that there are over 300 local start ups involved in the area of travel tech. Could this be one of the key reasons why flights to Eilat have risen tenfold in two years.

The ministry would also argue that much is to do with their change of policy. Instead of just passing out funds via local authorities, the mandarins today are deliberately targeting specific sectors. Those who win out are often seen to be enterprising and innovative.

For example, for the recent royal wedding in England, the ministry pulled a great ‘out-of-the-box’ stunt. They ran an advertising booth not far from Windsor Castle.

Israel is now on the map not just for religious tourists, travelling to holy sites in Jerusalem and around the Sea of Galilee. It provides a spot of relaxation for business vacationers. There are health resorts, medical tourism, wine tasting tours and much more. Geopolitical issues are now longer the handicap of the past. 2019, spurred on by the Eurovision Song Contest, looks as if it will see more records broken.

 

This week’s monthly meeting of the networking group “Jerusalem BioCity” showed just how much the city has emerged commercially. Once, the domain of bureaucrats and tourists, Israel’s capital now hosts venture capitalists with significant clout, in addition to world class working spaces and financial support from the public sector, all dedicated to the health community.

The meeting ‘s key speaker was Dr. Zvi Karni (middle of the picture), the CEO of Alma Lasers, who delivered an excellent summary of his company’s successes.

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He was preceded by four leaders of Jerusalem-based medical or bio start ups, each offering a new solution in their individual fields. What I found fascinating is that most had created a solid business model and had found financing, despite being lodged in the supposed commercial backwater of Jerusalem.

Jerusalem BioCity is at the fulcrum of a change that has global impact. If you google the phrase ‘Jerusalem bio / pharma’, you discover an amazingly vast spectrum of IP. Two of the key factors in this development are the city’s leading hospitals and its multi-campused university. For example:

ITEM ONE: Asana Bio Group Ltd. has invested $2.3 million in the Lumir Lab, located at the Hebrew University, that will provide clinical trial services to companies that are developing a wide range of medical cannabis-based products in a bid to help them get widespread legitimacy.

ITEM TWO: An new HIV drub, developed by Zion Medical in Jerusalem, appears to be “99% effective”.

ITEM THREE: Now at Phase 3 stage for its leading product, Gamida has filed for a US$69 million IPO on NASDAQ.

What next? Keep googling. Blink and you could miss it.

 

I have just spent 10 days walking around London and the English countryside. Even in the most obscure places, you find that somebody is shouting out an interesting message about their business.

On one particular day, my wife and I strolled for miles, through forests, up and down rolling grassy hilltops. And then we unexpectedly came out to a clearing to be greeted by a coffee house, doing a roaring lunchtime business. Home made pies and cakes, at seemingly reasonable prices. About the only thing they had not sold out of was coffee and tea.

This was not ‘passing-by’ custom. People had deliberately come here.

The reason I mention this is that on my first day back, apart from writing this blog, I have to give a talk on creating a winning business model. So as a Jerusalem-based business mentor and coach, let me just offer two insights that came my way, while on holiday.

We found a place to stay in London, using Booking.com. Great location in the city, the one room studio looked inviting on the website, even alluding to a balcony where you could sit outside. In fact, the entrance hall smelt of damp, the doors creaked, the fan in the bathroom sounded as if it was about to launch with NASA, and I could go on.

We will complain. The place will be graded accordingly. However, compare all that to the small flat that some friends of mine place on Airbnb. Their location in Israel is residential, neither close to business nor tourist centres, and yet they have an over 80% occupancy rate.

Why? Because they care about their customers. They have placed much thought into why people want to stay in such a lodging. As I suggested a few weeks ago, they have considered, in depth, why people want to buy.

We also discovered that travelling to and from Luton Airport is never a problem. Their are several buses an hour, multiple routes, 24/7, at amazingly attractive rates. You wonder how taxis can compete? They do. I know of one person who specializes in customers to and from Israel. His fees are a touch less than his competitors, but still way above those charged by the buses.

And how does he ‘get away with it’? His car is clean. He turns up punctually. He is polite. It is a service worth paying a bit extra for.

Meanwhile, the bus service from the airport in Israel to Jerusalem is not brilliant. For decades, one taxi service has dominated the roads. The shuttle fills up with ten people and then drives off. If you speak to their offices in Jerusalem, you are often left with that feeling of wonder what you have done to annoy them.

My wife and I waited for 50 minutes on last Friday morning – after an overnight flight – for the driver to pull out. He insisted on hanging around until his vehicle was full. He claimed that the rules allowed him to wait a full hour.

And as we were sitting there, helpless and clinging on to the last piece of patience we could muster, and waiting for others to pile aboard, many other travelers sauntered by with their luggage on their trolleys. You see, they were heading for the new railway line from the airport…to Jerusalem. Clean, still getting over a few teething problems, and none of the ‘unsubtle driving techniques’ of Israeli taxi services.

Your business model is often the base for an executive summary. Guess which model above would and would not appear to have a future. Be specific in your reasoning. And then, work out how these answers will have you summarise your business to a prospect.

 

 

 

 

I have been asked to give a series of lectures in the Jerusalem region on creating a killer business model. And when considering what makes a strong selling package, I came across a series of massive failures by those who should have known better – remember how Hoover UK promised a free trip to America if you bought £100 of products?

As a business coach and mentor, I find myself asking a question: Why is it that sophisticated executives make such blunders? What is it that they ignore?

I am fascinated by the practical, if not obvious, approach of Mark Banschick.

…. the buying decision is the result of both how well information was transferred from the business to the buyer, and the believability of the information…….customers need constructivist support, i.e. things that make the product or service personally meaningful. (My emphasis).

Interestingly, in this age of Amazon selling, Banschick makes the point that sales are often secured when a potential customer can touch or feel a product.

Cole Shafer takes this argument one stage further.

People buy to move closer to pleasure or further from pain (or in some rare instances both)

Shafer explains that sales are concluded for a wide range of different reasons; emotional, need, herd mentality to name but three. It is the job of the seller to understand what makes their target community tick and what message delivered by which medium is the most effective.

Again, all fairly obvious. However, why do so many of us – corporate and SMEs – miss this? The answers vary from laziness to arrogance through to the ‘fear factor’. What they all have in common is a lack of attention to detail.

So my question to you is what have you ignored in preparing your latest sales campaign? And have you ever considered how much you will benefit from just another 1% growth in sales?

It is generally accepted that Israel will be burdened by a general election in the first quarter of 2019. Thus, the top ministers of the various partners of the coalition are rushing to give interviews as to how much they have done for their supporters and how their policies have made these groups better off.

And yes, the politicians and bureaucrats in Jerusalem have been doing a reasonable job. For example, the rating agency, Standard & Poor, raised its grading of Israel to AA- this summer.

But, I have been very concerned just recently. The Finance Minister, Moshe Kahlon, an opponent of the Prime Minister and one of the shrewdest players on the political court, is advocating 90% mortgages for young, first-time buyers. In other words, on the 10th anniversary of the global credit crisis, Kahlon is rejecting one of the most key lessons learnt from the financial meltdown.

Significantly, Kahlon has had more than his fair share of arguments with the Governor of the Bank of Israel, Mrs. Carmit Flug. A few months ago, Flug realised that her tenure would not receive an ‘automatic renewal’ for a second term, and so she announced her resignation.

Flug’s deputy, Dr. Nadine Bodo-Trachtenberg, gave an interview to “The Marker” newspaper in Hebrew last week. Yes, she complained that she has not been considered for the top job, despite what she sees as he excellent pedigree. And she appreciates that she is as ‘marked’ as a supporter of her immediate boss. That said, Bodo-Trachtenberg clarifies issues that Kahlon would not necessarily want others to here.

First, Israel was extremely well prepared to meet the crisis of 2008. Banks were not exposed and the Minister of Finance at the time refused to budge to the needs of interest groups.

However, in 2018, the threat is external. Israel’s balance of trade has improved significantly by building up strong relationships with the likes of China, Brazil, the UK. Each of these countries and others are now facing the threat of an economic slowdown. This shift will probably impact adversely on Israel. Bodo-Trachtenberg argues that Israel should not continue in a vacuum, unprepared for the worst.

Second, compared to other countries, Israel has brought down its GDP-to-debt ratio from around 80% to 55% since the year 2000. The OECD average stands at about 100%. Above 120% or so, and you end being compared to former basket-cases like Greece and Ireland. The problem is that the populist demands for monies from the coalition partners in the Israeli government, combined with the necessary demands of the defense sector and the Prime Minister’s weak position in the Kenesset, means that the success of debt reduction is under threat.

And when that is at risk, Standard & Poor could revise their estimates back downwards. This in turn would make it more difficult and more expensive for the country to raise money on the international money markets.

I have no idea who will replace Flug. I do know that the best central banks in history are able to maintain their independence from the grubby hands of politicians. Israel needs that protection just as much as anyone other country. Let us hope that Kahlon and Netanyahu have the skill and courage to maintain their distance from one of the key elements of any civil society.

 

Today, Thursday, nearly 7,000 Christians marched are openly and proudly marching through the streets of Jerusalem. About 24 hours earlier, Jeremy Corbyn, the controversial leader of the Labour Party in the UK, spoke to his annual conference. Regarding Jews and Israel, he said:

I believe we are all stronger from listening and learning from each other.
The Jewish people have suffered a long and terrible history of persecution and genocide. I was humbled to see a memorial to that suffering two years ago, when I visited the former Nazi concentration camp at Terezin.
The row over antisemitism has caused immense hurt and anxiety in the Jewish community and great dismay in the Labour Party. But I hope we can work together to draw a line under it.
I say this to all in the Jewish community:
This party, this movement, will always be implacable campaigners against antisemitism and racism in all its forms.
We are your ally.
And the next Labour government will guarantee whatever support necessary to ensure the security of Jewish community centres and places of worship, as we will for any other community experiencing hateful behaviour and physical attacks.
We will work with Jewish communities to eradicate antisemitism, both from our party and wider society.
And with your help I will fight for that with every breath I possess.
Anti-racism is integral to our very being. It’s part of who you all are, and it’s part of who I am.

……. And let me next say a few words about the ongoing denial of justice and rights to the Palestinian people. Our Party is united in condemning the shooting of hundreds of unarmed demonstrators in Gaza by Israeli forces and the passing of Israel’s discriminatory Nation-State Law.
The continuing occupation, the expansion of illegal settlements and the imprisonment of Palestinian children are an outrage. We support a two-state solution to the conflict with a secure Israel and a viable and secure Palestinian state.
But a quarter of a century on from the Oslo Accords we are no closer to justice or peace and the Palestinian tragedy continues, while the outside world stands by.
As my great Israeli friend Uri Avnery who died this year put it: “What is the alternative to peace? A catastrophe for both peoples”.
And in order to help make that two-state settlement a reality we will recognise a Palestinian state as soon as we take office.

Promising, but as with much of the speech, great words and little substance. To find out if the deeds can match the words, it is worth referring back to the debate on Tuesday, when the conference voted to ban arms’ sales to Israel. The reasoning is that because Israel is deemed a goliath of an aggressor against the Palestinians, it should only be allowed to defend itself against terror with one hand tied behind its back.

Now this debate was considered the fourth most urgent issue at the conference, as judged by delegates. It was placed higher than the National Health Service or pensions to name a few. In fact, Israel was the only country selected for a foreign policy debate.

Some considered the discussion an empty gesture by an irrelevant force. Judging from the popularity of Corbyn’s own speech, I find this naïve. The debate on Israel had to be carefully orchestrated. And despite the control, many speakers managed to work into their comments anti-Semitic elements. For example:

If you want to know how that orchestration (of alleged antisemitism smears) works you need to watch that Al Jazeera documentary The Lobby.

What really concerned me was the chanting not reported about in the general press. At the beginning of the discussion, many delegates were bellowing out the phrase “Palestine will be free from the river to the sea”.

Sounds innocuous? It is part of the PLO constitution. It refers to the Mediterranean Sea and the Jordan River. The constitution explicitly says that Jews will not be allowed to live in that area.

Nobody took any action to stop these chants. And where exactly are the Jews of Palestine supposed to live? In a Corbynite Britain?

In this context, what do the 360 words of Corbyn’s speech quoted above add up to?

Let me provide an answer in manner that challenges the newspeak of Corbyn. He argues that he talks to the IRA, Hamas, the Iranians, et al because he believes that in order to make peace, you have to talk to the enemy. Sounds potentially plausible.

It is funny how he never talks to his own enemies like leading rabbis in the UK or the Zionist organisations in the UK. Why is that? What do those lack of action signify?

Postscript:

I am currently reading a book called The Holocaust by Laurence Rees. With some ironic timing, his description of Hitler’s manipulation of the economic chaos of the late 1920s and the speeches of the Fuhrer are worringly familiar to a politician of the modern era.

Israel is known as the start-up nation. Its bilateral trade with countries like the UK has never been higher. OurCrowd, based in Jerusalem and a leader in microfunding, is about to reach US$1 billion in crowdfunding.

In recent weeks, the country has seen a stunning list of successes in the acquisitions market.

And so the list goes on. Israel’s place in the international market is well established.

This position is based on mutual trust and growth for all. Today, Tuesday, the annual conference of the British Labour Party is due to vote to reject that prosperity. This issue is considered more important than the failing National Health Service….which is also now benefits from Israeli technology.

It is rare that I just copy and past an article. This one just struck me as so rich in both motivation and modesty, and it is wrapped around one of my favourite themes, Jerusalem. Pls read, enjoy and pause for thought.

My compliments for the initiative shown by the author, Dvora Waysman.

At the corner of my street in Jerusalem’s Beit Hakerem neighborhood, there is a little pocket park. It has two benches, which are often occupied by the elderly or Filipino caregivers, having a break and meeting their compatriots. For anyone who doesn’t have their own garden, or a balcony with a view, it is a haven in a bustling suburb. It is always well-tended, weeded, watered and pruned, and there is always a bush or a shrub in bloom.

There is a plaque in the garden that simply reads in Hebrew: “In memory of Raquela Prywes, a nurse in Israel.” I have always been intrigued by this unknown lady, and only recently found out her story. She was born in 1924 in Palestine, as it was then, and her family had lived here for nine centuries. She grew up in Jerusalem in a close family, became a nurse and a midwife at the age of 18, and died in 1985 at the age of 61.

In 1945, she was asked to go to Atlit, a British prison camp located in the north of the country near the port of Haifa. There, survivors of the Holocaust, who had arrived on “illegal ships,” were held behind barbed wire. Among them were pregnant women, dressed in rags, who dreamed of delivering their babies in the Jewish homeland. Seeing these women, still in captivity after the unimaginable suffering they had been through under the Nazis, inspired this dedicated young woman to help them any way she could. Many of these women later told stories about the “Jewish Angel” who delivered the first babies born to Holocaust survivors in Eretz Yisrael.

When the British finally realized that Atlit could not hold all the “illegal” refugees landing on the shores, they decided to send the ships to the island of Cyprus. Due to Raquela’s outstanding nursing skills, and the compassion she had shown at the prison camp, she was asked to go along. There she delivered more than 2,500 babies to women who had escaped the Holocaust.

During the Israeli War of Independence in 1948, Prywes worked in Jerusalem at Hadassah Hospital, delivering babies day and night, as well as caring for the casualties of the intense fighting for the land of Israel. She had seen many of these soldiers in Cyprus; they had gone from the concentration camps in Europe to the refugee camps, and then into the new Israeli army.

In 1950, Raquela married Arik Brzezinski, an obstetrician who had emigrated from Poland. They lived in Jerusalem and had two sons. The same year, she was able to save a young woman who was six months pregnant and very ill with toxemia. The woman turned out to be the daughter of Golda Meir, who was to become Israel’s Prime Minister. She praised the young nurse as “the best nurse-midwife in Israel.” Tragedy struck in 1976, when their son was killed serving as a lieutenant in the IDF.

Together with her husband, she helped found the first hospital in Beersheva, which was then just a desert. There she helped deliver babies of Bedouin women, as well as Jewish immigrants from all over the world who were coming to the new Jewish State. Later, she was credited with starting several hospitals that saved hundreds of Israeli soldiers during the Six Day War in 1967.

After the sudden death of her first husband in 1961, she married a widower with two young daughters. Moshe Prywes was also a doctor, and the president of Hebrew University. They traveled around the world, learning medical techniques that they brought back to Israel to improve the services here.

Her life mirrors the establishment of Israel. She was there before its birth during the dark days of World War II, through the 1967 war and also the Yom Kippur War in 1973. Before she died, she saw her first Israeli grandchild born. She died too young, but left a legacy of devotion to the Jewish people for which we will always be indebted.

I don’t know who are the various people who come to tend her garden. I know they are volunteers, and not from the Municipality, but whether descendants, friends or just admirers of this wonderful woman I have no idea. I see them prune the rose bushes, tie up straggly plants, carefully weed between the rows. It always reminds me of a sampler that hung in our Australian kitchen when I was a child. My mother, not a great needlewoman, had carefully sewn the letters in different colored threads. They read:

“The kiss of the sun for pardon,
The song of the birds for mirth.
One is nearer G-d’s heart in a garden
Than any place else on earth.”

Published by Jewish Press.com on 20th August 2018.

I was just beginning to reflect on another busy week. The usual question popped up: “What have I achieved?”, and then my mind stated racing off into a fascinating chain of thoughts. Let me explain.

In my work as a business coach and mentor, I have been tackling some fascinating new projects. Here are just three examples:

  • A former Broadway dancer, who has set up a dance school for young children in Jerusalem.
  • A 20+ something with little formal education, sitting in a co-workspace in Jerusalem, who has worked out a disruptive technology for the payments industry.
  • An educator, who is determined to create a children’s museum, from scratch.

And so I can continue. These really are very brave people, supported by minimal commercial experience. Watching them climbing over or going round obstacles as they are thrown at them, it has been a pleasure to work with them up to now, and so may the experience continue.

However, I realised that my “weekly personal recap” was seeking out something more. Not just a flash of inspiration, but something longer lasting.

Some people find that extra “uumph” by watching a TV programme such as the “Biggest Loser”. Jay Shetty’s films are never to be dismissed lightly. And the internet is full of amazing videos, such as the father who runs a long race pushing his physically challenged child in a pram. Fifty metres from the end, the child stops his dad, manages to stand up, and in the most awkward manner shoves himself over the finishing line. I will not forget that one too quickly.

Still, what is it that I do that I am really thrilled about and keeps me going during the day? And then I realised what it was, a most nonchalant of actions.

Most mornings, first thing, I usually find myself in Synagogue. For years, I had observed as people had put sums of money into a charity box, usually at a set money in the prayers. Yes, it’s great to help others, but I had felt that this specific approach did not appeal to me, for whatever reason.

This changed about a year ago, although I am not sure why. Religiously, most days, I now drop an insignificant amount into the opening at the top of the wooden box. I get a buzz out of it, every time. I know that, combined with the efforts of others, I am now helping somebody, somewhere, somehow.

And how does that relate to my work? Because that is what my mentoring and coaching is all about. The success of the case studies above are not dependent soley on me. Hopefully, I am one part of a wider circle of resources. When they come together, a unique dance studio is formed, an amazing software is available and kids will benefit from a fascinating educational experience.

Personally, I am putting what may seem an “insignificant amount” of my experience into the organisations of business owners, but it changes their lives. And the foundation for this? That little act every morning of picking up a few coins and placing them in a wooden container. I now understand what it generates for me for the rest of the day.

So what is it that inspires you this week….and every week?

 

True story. Happened to me last week.

I was asked by the Keep Olim organization to give a talk at the MATI premises in Jerusalem. What could I, as an experienced business coach and mentor, impart to new immigrants in Israel, looking to set up a new business.

Imagine the scene. Several of the participants turned up early. They entered the room, said their hellos to me and then promptly found a seat. The body language of many of them exhibited a “do not disturb sign”, as they took out their mobile phones, which I assume they had not looked at for at least an excruciating five minutes.

Resorting to some old fashioned techniques of group dynamic, I quickly arranged people into couples, and encouraged them to speak to each other. (One person struggled to abandon his precious phone, even if he might benefit from a new commercial encounter).

After seven minutes, I created new partnerships, although not without some objections. Apparently, I had not given the first set of teams enough time to listen to each other. Of course, I did point out that they could have done this beforehand.

Sad. In a society dominated by the language and technology of millennials, somehow we do not find the time or the ability to listen to the wisdom of those very people sitting next to us – at work or in the home. This point was rammed home in an article by the former Chief Rabbi of England, Lord Jonathan Sacks.

Writing about the Book of Deuteronomy, Sacks observes how the word “Hear” is mentioned 92 times. In that context, I would add that ironically the book is called Devarim in Hebrew, which means “words”. Sacks adds:

Listening to another human being, let alone God, is an act of opening ourselves up to a mind radically other than our own. This takes courage. To listen is to make myself vulnerable…..But, it’s the people not like us who make us grow.

Last week, our eldest son approached my wife and I for some business advice. He really listened, but went in a different direction. Intriguingly, a few hours after I read the comments of Sacks, he received similar words of wisdom from somebody else (in my presence). To give him credit, he has begun to act on them, and I believe that could make a vital difference in what he is trying to achieve.

 

 

Moscow’s month of football mania is over. France won. Much back slapping for Putin, even if he left important guests drenched in the rain. And the bloggers are still occupied with finding ways to link this sporting orgy to clever messages.

So permit me to join this game for a couple of minutes, as a business coach and mentor.

England’s latest hero is Harry Kane. Finally, the country has at least one player who can actually put the ball into the net. A “model student” at school, who excelled at several sports, he has worked his way up through a series of junior sides. However, what all his professional admirers have pointed out is his burning desire to put in the hours – to practice and to practice some more until he gets it right.

Intrigued by this determination, I looked at some other heroes of the tournament. For example, Luke Modric, Coatia’s brilliant captain, grew up during the cruel war in the Balkans in the early 1990s. Football provided a way to escape from – in more ways than one – the horrors of battlefields. His first shin guards were made of wood. To be blunt, not even a round of bullets aimed at his family could stop him progress.

And the French striker, Kylian Mbappe, is the son of immigrants from Africa. Barely four years ago, he was still sharpening his skills on gravel pitches just outside Paris. Yesterday, he was probably the most skillful person on the most important stage for world football.

I was able to bring together my thoughts on these players and others, when I was meeting with a client in my office in Jerusalem. He has been pondering a wonderfully creative idea that can be nurtured from the garage to, hopefully, a much wider business operation. He has already validated the concept commercially.

And now comes the challenge. He has to apply his passion – and he loves his subject – to a business model. That means much hard work; checking multiple suppliers, learning production processes, investigating facilities, creating a pricing structure based on a clear profit, and so much more.

My point is that all these aspects are very doable, but may not be easy for each individual. For example, as a modest person, he does not like bothering others to obtain information. He has to be encouraged to call outsiders. Similarly, making a large profit is an anathema to him.

This contrasts sharply with out three footballing heroes. Each one grew up with their own hang-ups. Who am I to assess them here? What is clear is that they have been able to put them aside in the name of their dreams and their passion. That is what their various coaches taught them along the way to their successes.

Bottom line. You may have skills, sporting or in business. However, you have to learn how to apply them. This takes time, patience, pain – over and over again. It is important to realise this as early on in the process as possible.

 

We all have those hot nights, when we cannot fall asleep. We look for something meaningful to do. We five minutes ago, I just saw two contrasting videos of Facebook that I want to share.

I was struck by the beauty and simplicity of a most effective video from Koolulam. This is a group that brings masses of people together through song, whatever their background. Their name is a play on the word inclusiveness.

This time, Koolulam arranged for members of Jerusalem’s three leading religious communities to perform in the ancient City of David, located just inside the Old City of Jerusalem. The chosen song was originally written by Bob Marley.

Just click on this link, watch and take it in. Note also the special lighting effects bouncing off those very ancient and symbolic walls.

At the heart of the name Jerusalem is the word “shalom” or peace. Next time somebody tells you that the city is not open to all, 24/7. just think about what you have seen.

And then sadly, almost the very next posting I saw revealed the ecological disaster that is evolving in the south of Israel. It may not be terror in the classic sense of the word, but it is designed to frighten, destroy and maim the innocent.

It is time for the world to show that it cares and to tell the perpetrators that they will be punished. Why? Not just because such acts are abhorrent.

They are also futile. And how do I know that? Because only resilient countries – states that are built on core values of mutual love, hope and respect – can produce videos like those of Koolulam.

Israel’s economy has been given a big “thumbs up” just recently. Matthew Michael, head of EMD and Commodities at Shroders Investment, one the UK’s largest investment houses, has paid a visit to the Holy Land. This was not his first trip here, as his team are trying to show a visible presence in the country.

Shroders operates in over 20 countries. And as Michael discussed in an interview with the Yediot Ahronot newspaper, Israel is considered the 4th least risk problematic country in Schroders index of 80. Some mighty compliment. What I found interesting was Michael’s assessment that Israel is well protected against unforeseen shocks to the world banking system.

That is all very encouraging. And the economy is still growing by over 3% a year, as unemployment remains at a record low. So where’s the proverbial “but”? And there is one, if not two or three.

Let us start with what interests Shroders, the banking system. Israel has been blessed with several strong and defining Governors of its central bank over the past two decades. None more so than the incumbent, Karnit Flug. Unfortunately, as her first term of office draws to an end, she has been forced to fall on her sword. Having neither the approval of the Minister of Finance nor the Prime Minister (for different reasons), she has asked that her contract not be renewed.

What is the concern? The role of the Governor of a central bank is to be an independent voice, protecting the money supply of a country. This calls for the political echelons to act with responsibility, and not just appoint a ‘silent mirror image of themselves’. Given the behavior of the aforementioned gentlemen, that is unlikely to happen with Flug’s departure. And in that case, if the new person is to be a “yes man” (or woman), a new large question mark will open up against Israel’s ability to raise money on the international markets.

Next is that ever worrying and constantly ignored issue of wealth distribution. With a huge amount of irony considering the religious nature of the country, Israel has the highest ratio in the OECD of salaries in the ninth decile (the 10% of salary earners below the top 10%) to salaries in the bottom decile (the bottom 10%). 

The country scored 7.22. The average for this ratio in the OECD was 3.22. In second place after Israel was the US, with 5.05, following by Costa Rica, with 5. In other words, the rich are getting richer more quickly, as the rest of us fight for the scraps on offer.

In my view, this is unacceptable as well as unsustainable. Further, it gives a much deeper perspective as to why so many government ministers and their associates are being investigated at this time for misuse of public funds and authority. And I deliberately include in that listing the files against the Prime Minister and also his wife.

If there is a message here, it is very clear. Wonderful stats and even a seemingly solid infrastructure takes years to create. However, they can be destroyed far, far more rapidly. They can only be retained and protected through continuous responsible measures. Flug and the OECD have delivered their warnings.

 

Somewhere amongst a very stressful week, I came across three very insightful postings from the web. Together, they form a powerful message.

Let me start off with sport. Football’s World Cup in Russia is but one of a myriad of great events these days. For example, the Brits are lining up for their annual two week tennis binge at Wimbledon in south west London. It is a wonderful event. If you pardon the phrase, the buzz of the crowds can be heard even during the silence of the points as they are played….,

…except for Lee Duck-hee. This 20 year old South Korean, deaf from birth, is a professional player and has been trying to qualify for the tournament.  I find it astounding that he has found a method to overcome the lack of hearing so key for others in their 100% fight on the court. Can you imagine trying to play the game without listening to the sound of how the ball has been it or if it caught the net? That requires an extra level of determination.

Somewhat staying with sports, I came across a post from motivational speaker David Flood. He described how his physically challenged son took part in an ice hockey game and what he learnt from the moment when his son actually scored. I will not spoil the whole story , but he signs off by demanding that we look inside ourselves.

“Your life is not about you”, Flood reminds us. It is how we interact we all – yes, all – those around us and what we can learn from them.

My final item leads me into the world of high-tech. We are used to hearing stories of people starting out in garages or dropping out of university before they reap their millions. However the founder of Flickr and Slack, Stewart Butterfield, has a very unique background.

(He) spent the first five years of his life living on a commune in remote Canada after his father fled the US to avoid serving in the Vietnam War. The young Mr Butterfield and his parents lived in a log cabin in a forest in British Columbia, and for three years they had no running water or electricity.

Think that unusual? Butterfield originally contemplated a career as a professor of philosophy. And today, his personal fortune is estimated at around US$650 million. Clearly, living in the wilds of Canada do not act as a boundary to becoming one of the world’s wealthiest people.

I am a business coach and mentor. My office is in Jerusalem, Israel, a region where miracles are supposed to be ever present. Somehow, while these characters may have prayed, I do not believe they relied purely on an exterior force. They asked what else they could do of themselves in order to succeed.

So what will you contemplate about your future this weekend?

Coaches and trainers of all fields tell us that if we would just do some physical activity, we will feel better. If nothing else, a little bit of exercise is supposed to be good for us. So just try it, no?

My role as a business coach and mentor has forced me to dig deeper into this theory. After all, I cannot merely rely on the miraculous air of Jerusalem, where several of my clients hang out, to get them and their businesses into shape.

There is now plenty of literature that establishes a clear link between exhaustive activity and (ironically?) better thinking. As Melissa Dahl summarised, run and “new cells pop up in the hippocampus, a region of the brain associated with learning and memory.”

She continues:
Other post-run changes have been recorded in the brain’s frontal lobe, with increased activity seen in this region after people adopt a long-term habit of physical activity. ….. After about 30 to 40 minutes of a vigorous aerobic workout – enough to make you sweat – studies have recorded increased blood flow to this region, which, incidentally, is associated with many of the attributes we associate with “clear thinking”: planning ahead, focus and concentration, goal-setting, time management.

And I have proved this with my own clients. There have been times, when the standard meeting has proved uninspiring, I have invited them – not giving them much of a chance to refuse – to a quick yet stirring physical challenge. This is usually greeted with initial disbelief. However, as one person remarked to me twenty minutes afterwards, “Michael, I don’t know what you have done to me, but my head is rushing with ideas.”

Neuroscientist Hannah Critchlow confirms that neurogenesis, the birth of new brain cells, takes place in adults, particularly when running. However, she takes her research a stage further.

There’s a huge amount that seems to be hardwired into us and predetermined. You are born with a particular brain and that shapes your perception, shapes what you are hardwired to find rewarding. You are brought up in a particular environment and that reinforces what you are born with. (Thus,) if your perception of the world is based on prior experiences and hardwiring, then that shapes your reality, which goes on to affect your decision-making. A large amount of your decision-making taps into your reward system in your brain. Although there is scope to change certain behaviours, you have to make a real conscious effort in order to break habits and change how your reward system affects your motivation. I think neuroscience can be very empowering in that, in making me go for a jog rather than reach for a bottle of shiraz.

I have written previously about my own running efforts. There is no doubt that I can record the positive change that they have had in my career. I would like to sign off with a very different case study, which refers to a very brilliant yet fidgety individual, who has been asking me to help create a new professional path for him.

He realised his mistake only after he had told me that he used to run marathons, although you could not tell that from his current bodily outline. He has since run tens of kilometers – for me and for himself. And as per his running, his pace of commercial progress has also increased noticeably.

Last week, the Israeli air force deliberately released a picture, depicting one of its new F-35s flying serenely over Beirut, arguably the first operational sortie of its kind in the Middle East. Clearly a big wow, and obviously sending a message towards the Iranian leadership.

Let me move on from the diplomacy and recall that F-35s are manufactured by Lockheed Martin. This huge conglomerate has been supplying Israel with planes for decades. However, the commercial links between the defense manufacturer and the Holy Land are just as significant.

For example, Lockheed Martin is estimated to have spent around US$1 billion is reciprocal purchasing arrangements in Israel since 2010. Back in 2015, it had already invested US$10 million in Cybereason, whose software prevents the hacking of large systems. And last week, the company opened a new office in the desert town of BeerSheva to coordinate its operations with the Israeli army.

What I have found fascinating is the latest news that Lockheed Martin is to open a preschool facility in Jerusalem called “Madakids”. (Mada means science in Hebrew).  It is to be deliberately located in one of the poorer neighbourhoods of the city, aimed at giving children a chance to develop their instinctive innovative skills.

The project is a first for the company, which is known to invest in primary and secondary schooling around the globe. The investment will only cover the funding of the science curriculum.

I have recognized that there are three elements to a culture: behaviors, systems, and practices, all guided by an overarching set of values. A great culture is what you get when all three of these are aligned, and line up with the organization’s espoused values. When gaps start to appear, that’s when you start to see problems — and see great employees leave.

Thus argues Melissa Daimler in response to her question in the Harvard Business Review as to why great employees leave “great cultures .

All of us have stories of organisations who talk about delivering something, but end up demanding the very opposite in practice from their employees. I recall one factory in Jerusalem, where the CEO really tried to be in touch with all the workers, yet one shop floor staff member was regularly required to turn out 33% overtime…despite a muscular problem with his hand. Or how about a large public charity, where one of the back office team feels obliged to work until 11.00pm on a frequent basis. Seemingly, no real appreciation is extended.

To summarise Daimler’s argument: So many CEOs preach a set of values and practices, which are just not matched by their own behavior. It is easy to ask why they act in this abhorrent manner. It is relatively simple to throw out a few obvious suggestions. However, in my experience as a business mentor, most of the guilty CEOs are simply oblivious of the dilemma, and which they have created

I was told of one senior employee, who left a multinational after years of devoted service. Their influence had been felt outside their own immediate territory. They were known to the top team, a team that insists on liaising with such employees before they depart the premises for the last time.

And yet, not a word was said, not even a brief email to say “thank you”. This silent message – call it the cold shoulder treatment or showing your back – does eventually reach others.

So what? There is a reason for creating a corporate culture. It drives motivation, which in turn drives sales.

So many CEOs are the very enemy of what they are striving for. From my anecdotal evidence, they have one thing in common. They are surround by ‘yes people’. And maybe that is why they do not realise the need to say ‘thank you’.

 

Today, Sunday 13th May, is Jerusalem Day, recalling the unification of the city in 1967. Tomorrow, the USA will formerly moves its embassy to the Holy City. Tuesday is Nakba Day (Day of Catastrophe), which Palestinians describe as the day when the modern state of Israel was created in 1948.

Exhausting? Wednesday sees two other embassies inaugurated and Friday is the start of Ramadan for Muslims. I think the police may have cancelled all leave!

Why all the fuss? I think that part of the answer lies in the numbers. Since 1967, the city has grown from 266,300 to 882,700 citizens. 62% are Jewish, of whom 41% can be described as members of the ultraorthodox communities.

These numbers continue to grow. The average number of births per family is 3.2 children including both sides of the religious divide. However, there is a much larger figure for religious Jewish families.

As is almost customary at this time of the year, the government announces special schemes for the capital. One item that caught my eye is the 445m shekel allocation, about US$125 million, for improving the education sector for the Arab community.

Spread over five years, the plan takes in several aspects. These include advancing courses in innovation and entrepreneurship, as well as  in non-formal methods of teaching. I was also encouraged by the increased emphasis to be placed on teaching Hebrew, thus securing a greater level of integration.

And if you still think that Jerusalem’s economy remains based around tourism and the government ministries, take a look at these three headlines from the past month or so:

The city is hungry for more growth. Long may it be united, open to all-comers

The hostile interview conducted by the BBC of the Israel ambassador in London, Mark Regev, is seen as typical as to the way many view the government in Jerusalem. Somehow the show’s host seemed to ignore that Iran had sent a fuselage of 20 rockets of Israeli civilian centres and implied that the Israeli retaliation through heavy air strikes was out of place.

Less than a month ago, Brian Krzanich, the CEO of Intel, attended a different aerial display. Barely spending a day in the Holy Land, he attended the official ceremony, celebrating 70 years since the country was founded. The central focus of an event was a special display of Intel’s Shooting Star fleet of 300 drones.

Intel has been associated with Israel since 1974, a period when the old Arab boycott was in its heyday. Today, there are roughly 11,000 workers, approximately 10% of the company’s manpower, spread over five sites, including one in north Jerusalem. The chips for the world’s current generation of computers are developed in Israel.

Intel’s exports from Israel are valued at over US$3.5 billion dollars, a nice chunk of the firm’s US$ 62 billion in global sales. There are current plans to invest a further US$ 5 billion in the country, in addition to the US$11 billion already spent.

Krzanich’s trip was his second to Israel in as many months. In March he had turned up to meet with the Jerusalem-based automotive chipmaker Mobileye , which Intel had purchased for US$15.3 billion a year earlier.

His interview with the Yediot Ahronot with Sever Plocker newspaper was revealing. He described how Intel is in Israel not just for the government grants and support. He values deeply the country’s human resources and intellectual skills. And he went further, referring to Mobileye’s contribution:

In 10-15 years time, we will look back and ask ourselves how we were able to live without automatic cars….

And I have to ask myself: Will that same BBC reporter and his ilk ever be able to come to terms with the many positive contributions Israel makes to this world, including the brave decisions it takes when responding to tyrant regimes?

My friend Seth Vogelman, a commercial connector from Jerusalem, sent me an intriguing blog called “The unintended consequences of a too-nice work culture” by Jonah Sachs. Bottom line? Lower level colleagues are so afraid of offending others that vital information is not passed on and upwards.

In other words, the corporate outlook may be chummy and pally, but the opportunity for increased profits is dulled.

As a business mentor, I have seen this scenario played out several times, when entrepreneurs approach investors. As the former try to endear themselves to the person authorizing the cheque, they become over charming. All well and good, but what is of more interest to the target is whether the business owner can be hard enough to drive a new enterprise. A smile may get you some of the way, but only so far.

I recall that in one of my former positions in a large corporate in Jerusalem, I did everything I could to curry favour with the top team. And yes, I was appreciated. However, the colleague  – a really nice guy, I add – who secured the advancement was the one who reported in straight terms as to what needed to be changed.

Some people see business mentors and coaches as having the role of playing “Mr. Nice Guy”. I have long since picked out such potential clients as the ones that I am unlikely to sign with. My role may be to show empathy, but not to hide the sometimes painful facts.

Just this week, I met up with some young entrepreneurs with an interesting idea for a innovative app. By the end of the conversation, I had demanded a rethink. The market was too narrow and they had not conducted a reasonable survey of consumer expectations, amongst other issues. They looked a bit numb, but appreciated the frank approach.

And today, I encouraged yet another client to go back to their accountant and demand that they produce financial statements that have meaning. Why book keepers so often have to forced into making their reports functional is beyond me.

And for those who do not like confrontation on the work floor? Just think of the damage caused by not sorting out the mess, firmly yet with a smile.

 

 

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