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As a business coach and mentor, what is your mantra?

1 August 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I have been practicing the profession of business coach and mentor for over a decade. I am often asked if there is one key phrase or anecdote that applies to just about everyone.

By way of background, many of my clients are in the Jerusalem region in Israel, although some are located further afield, if not overseas. The scope of commercial activity and development ranges enormously from high-tech start ups to large public institutions. The issues commence with finance and strategy, and will work their way round to production, human resources, time management, and much more. The social and religious diversity of those in the room only adds to the challenges – all this in a country which has more than its fair share of political conflagrations.

This week, I was talking with an entrepreneur that has come up with a very practical commercial solution for a problem in the entertainment sector. I have an immediate task- to help the team develop a prototype within a short timeframe. That means that I have to find a way through the customary ‘web of issues’ in order to find the key problem that is restraining progress.

So, as our session finished and after I had set a list of tasks to be completed before the next meeting, I added my customary challenge. Looking at the less than sportly characters that were sat in front of me, I insisted that they go speed-walking for 20 minutes, 5 times a week.

A wealth of recent research, including a new study published this month, suggests that any type of exercise that raises your heart rate and gets you moving and sweating for a sustained period of time — known as aerobic exercise— has a significant, overwhelmingly beneficial impact on the brain.

I happened to come across this article from Business Insider just 24 hours after my meeting. What is even more fascinating is how it went on to mention that:

…the evidence that aerobic workouts have a wide range of potential beneficial impacts on the brain — from reducing the symptoms of depression to strengthening connections in parts of the brain linked with memory — is robust and growing.

And what results do I achieve with my exercise mantra? First, I never believe the answers to corporate issues lie solely in front of your computer. You need to engage with and learn from the real world. In addition, people return to my meetings with greater clarity and improved purpose. That significantly enhances their likelihood of achieving the change / corporate development that they are seeking.

The commercial value of Jordan’s anger with Israel

31 July 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Clearly, the Jordanian monarch and his government is furious with its Israeli counterparts in Jerusalem. Following the riots on the Temple Mount in the Holy City and then the shooting of two Jordanian citizens by an Israeli security guard, the Israeli PM welcomed home the same guard as a hero. This act was seen as the proverbial last straw of insult.

Jordan has since published the ID of the serviceman on the internet. More sanctions are threatened. At a time when Israel’s relations with Turkey are again looking fragile, this instability with an Arab regime, which is theoretically friendly, is plain unwanted.

However, all is not so simple. Once you peel away the rhetoric, the Jordanians know that they have as much to lose by sanctioning Israel as they have done with Qatar. The reasons are many. And these start with the fact that that the 1994 peace agreement between the two sides launched a series of commercial and social ties that are extremely valuable to the Hashemite Kingdom.

Current bilateral trade is worth over US$500 million, and that is just the official figure.

  • The creation of the free trade zone  near Tiberias will provide thousands of jobs directly, and also create much extra trade in both directions.
  • By 2013, there were already around 900 Jordanian lorries a month using the port of Haifa.
  • At the beginning of this summer, Israel finally started to export gas to Jordan. This US$10 billion deal secures for Jordan an alternative source of power, considering that the current options of Egyptian and Qatari suppliers are politically and diplomatically unstable.
  • Jordan is scheduled to invest over a billion dollars of its own money in the ambitious Dead Sea-to-Eilat pipeline. This is designed to bring desalinated water to peripheral regions, thus benefitting Israelis, Palestinians and Jordanians alike.
  • And then there are those socio-economic stories that rarely hit the headlines. To give just one example: Most of the Israeli agricultural settlements straggling the southern Negev border with Jordan provide agricultural training for the or neighbours. A generation or more of Jordanian Bedouin have benefitted from this trade of skills.

For sure, Israel’s government has acted in a crass and arrogant manner in regard to the feelings of the average Jordanian. And all this hopefully to secure a few extra votes for Bibi’s party. That said, for all the public and assumedly genuine rage of Kind Abdullah, Israel and Jordan will probably find a way to patch things up. They are almost too entwined to separate.

Israel and Ireland – a funny couple

21 July 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Last June, I was thrilled to meet up with the rep of Teeling’s Distillery at Whisky Live Tel Aviv. Based in the heart of Dublin, Eire, this brand of alcohol has a very welcome place amongst the growing whisky connoisseurs in the Holy Land.

With this still in mind, I was perplexed – to put it politely – to read that the Irish President, Michael Higgins, has just met Omar Barghouti, the founder of BDS. Ostensibly, BDS is a campaign to promote a cultural boycott of Israel, until it changes its policies over the Palestinians. Practically, this is a hate campaign directed against the Jewish state.

So is the praise of Higgins for Barghouti going to result in his boycott of all things Teeling? Well, somehow, I think not.

And then I begun to wonder. Intel has announced that it is about to expand its workforce in Israel by another 1,500 employees. (Remember – Israel is the country where for years Intel’s chips have been developed and then end up in computers all over the world….including Ireland). However, this is the same Intel that employs over 4,000 people in the Emerald isle itself.

Surely, Mr. Higgins is not about to throw out all of his computers? His Foreign Minister, Simon Coveney, seemingly finds this approach unhelpful, as expressed during his visit to Jerusalem this week.

And that is my point. BDS is a misnomer. Again, ostensibly it is about boycotts and sanctions. Every now and again, an artist does not visit Israel. What the campaign is really about is denigrating the one democracy in the Middle East and the one country in the region where the Christian population is actually growing. BDS is the antithesis of peace and rapprochement, whatever face Higgins may pull on that statement.

Is there a way out of this hypocrisy for Higgins? On his next trip abroad, he is hardly likely to fly Ryan Air, because of their expanding operation in Israel. Maybe he could try Wizz Air……that is before they too open up a full operations’ base in Tel Aviv.

The changing Middle East – Israel’s exports to Syria

20 July 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

As far as Israelis are concerned, Syria has probably hated them longer than any other member of the Arab League. So, when you look at the new exports sent from Jerusalem into its northern neighbor, you have to take another peep at what is going in.

By way of background, the ruling Alawites in Damascus consider about half of Israel to be a central part of Greater Syria. It is Syria that for decades hosted former Nazis. Before the 1967 war, Syria would regularly shell the farms and kibbutzes from the protection of the Golan Heights. Yes, a state of permanent war.

However, come the civil war in Syria, it is as if somebody has magically presented Israel with an opportunity to wipe the slate clean. First, as extensively reported in the world media, about 3,000 Syrian casualties have been treated in Israeli hospitals.

That level of aid is about to be stepped up significantly. Israel is to establish a field hospital on Syrian land, but within the Israeli side of the demarcation line between the two countries.

Further, it appears that Israel is now exporting large amounts of essential products into Syria, directly:

These efforts included transporting about half a million liters of diesel fuel, 360 tons of food, 77 tons of clothing and shoes, as well as dozens of generators and water delivery systems.

The humanitarian aid is provided to some 200,000 Syrian citizens living in 80 villages and towns in the Syrian Golan Heights and controlled by rebel groups not affiliated with ISIS. It is a strip of land 15 kilometers deep into Syria and 40 kilometers long, from the Syrian village of Jubta al-Hashib in the north to the Tal Saki area in the south-central region.

Yes, I admit, ‘exports’ may be a bit of an exaggeration, but it makes the point. These actions not only reveal the true human face of Israel. They show how Syria could have achieved peace with Israel decades ago, if only it had chosen that path.

And meanwhile……….

Just have a look at what is happening on one of Israel’s southern borders. A report from Reuters detailed how the political haggling between Hamas and the Palestinian Authority is impacting adversely on the health of many critically ill people in Gaza…….as the world continues to blame Israel for the depravation in the enclave.

It makes you think. Funny how Hamas refuses to accept Israeli exports to Gaza………. just like Syria’s policies of yore!

Considering your business coach as a magician

19 July 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Describing the role and importance of a business coach or mentor is never very easy. After all, why should a non-expert in your field be able to create extra value for you, your department and your company?

Let me try to explain through a case study. Last month, I completed a fairly intensive set of sessions with a doctor, seeking to build up his practice in the Jerusalem area. I have to admit that my knowledge of the medical world is such that I hate even having the simplest of inoculations. That said, when we started working together, my entrepreneur had been in the profession some time and was barely taking home a salary.

We stopped meeting a couple of weeks back right on schedule, and yesterday he sent me a summary email of progress since then. The bottom line is that he is frantically busy with several revenue streams. In fact, he has now opened up additional premises outside the Holy City.

In one of our final sessions, he kindly described me as a “magician”, a thought I have been bouncing around in my head for a while. I had asked for an explanation. What was suggested was that I have an ability to see through the clouds and excuses of procrastination, carefully cajoling a person towards a better commercial future. I am able to keep the client focused on achieving new and more profitable sales.

Flattered that I was, this blog is not just a subtle exercise in self-promotion. It is an lesson why so many more people can benefit from business mentoring for the same reason.

Let me take the argument one step further. I was interested to read a blog from the Harvard Business Review as to why CEOs and planners should “beware of spreadsheets“. Your detailed excel map simply be too linear, just adding up to meet a predetermined number.

I faced this syndrome last week, while sitting down with a group of sophisticated executives, trying to overcome a downturn in their market place. They came up with a predictive model for 2018, which they felt comfortable with but which was still underwhelming. So I challenged them to raise the target of a specific revenue stream by 50%. After the initial kickback, the ideas began to flow in. (Tackling the other revenue lines afterwards proved less difficult).

No, not all my clients love me. In the middle of June, after some preliminary meetings, a CEO gave me the boot. He claimed that we had not made any progress. My wife compared his behavior to somebody walking out of a doctor’s surgery, before the medic had offered a diagnosis.

On reflection, I disagree. I think he could feel that direction that I was going to tackle, which was to require a massive change from the owner himself. How I was going to spring that trick, I was not sure. There again, for all their fun and how they make you think, not everyone likes magic shows.

Israel’s changing economy – not what is expected

14 July 2017
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Categories: Business, Israel, Jerusalem

Israel’s political map could be about to implode. In countries, such as the UK, the hatred of Israel is actively encouraged in some parts on mainstream politics. However, for all of these and other worrying issues, something beautiful is also happening.

What brings all this together was a little known stat released by the Bank of Israel this week. Their original projection for economic growth in 2017 was 2.8%. This has now been revised upwards to 3.4%. That is a significant leap forward, benefitting many. And one of the key factors for the improvement must be the continuing openness of society, as described in the points above.

For the record, the position should be maintained throughout 2018 as well. This should be led to an increase in exports, despite the relative strength of the shekel.

I was left asking where else in the world do you see such potential being fulfilled, especially for such a small country which is surrounded by hostility?

Touring the Holy Land – Never been so popular

12 July 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The numbers of tourists visiting Israel has reached an all-time high. Compared to the first six months of last years, 2017 has recorded a 26% rise in visitors to 1.74 million in total.

The majority are not Jewish. A 76% increase to 57,000 from China. A 30% rise to 160,000 from Russia. And a 20% leap to 400,000 in Americans entering the Holy Land.

The question is why the change. Somewhat ironically, many believe that the answer has to do with terror. The fact that this inhuman horror has struck main centres such as Paris, London and other European hotspots means that Israel is seen in a new light. In other words, visiting Jerusalem is relatively safe, compared to the past and compared to similar international tourist attraction.

Is this a slap in the face for those who suggest that you must boycott Israel? As I noted a couple of months ago, the number of new airlines landing in Israel continues to impress. Easy Jet has just announced a new line from Tel Aviv to Venice and to Napoli. Wizz Air is due to launch regular flights to Britain.

Yes, the skies are gradually opening up. Even “The Independent” newspaper from the UK, which for years has lambasted most things to do with Israel, featured Tel Aviv as an ideal place to spend a long fun weekend.

If there is one dark spot on the horizon, it is Israel’s own national carrier, El Al. I have written extensively about this in the past, as have others. It is just a shame how senior management consistently fails to ensure that service and prices do not remain competitive.

The improving position of Israel as an international tourism centre is being achieved despite the strength of the local currency. And looking ahead? Next year, Israel will be the starting point for Giro dÍtalia, one of the main events on the cycling calendar. Clearly, more and more people are finally coming to learn that the Israel ‘beyond the headlines’ has so much to offer.

1 fundamental to remember when trying to clinch that vital sale

30 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Another hot summer afternoon in Israel. Another client who has botched a wonderful opportunity to make an important sale. Why do people not learn? And why do I have to start explaining the issues when I am parched?

So, there I was sitting with a very decent, educated team, just outside Jerusalem, who could not understand why their presentation had been well-received but remained unaccepted. They had talked about their team, the corporate background, their technology, the size of the market, and eventually why they had entered the market.

As I pointed out, that last phrase was their big, maybe their only, mistake. What I call the ‘wow factor” resonates around the ‘pain’ or the core of the issue, which is why the seller is there in the first place. Just how many people will not be satisfied if you do not buy a key food item? How many companies will continue to lose income if they do have access to a new technology? They are suffering so to speak, and are looking out for the cavalry.

My clients had unwittingly elected to talk about the ‘pain’ only near the end. Therefore, their own prospective clients had not fully grasped what was so ‘wowish’. In other words, there had been a lack of empathy, however unwittingly. The result? No deal.

The importance of the issue was rammed home to me a few hours later, when I dropped in on the annual meet up of Tech Crunch in Tel Aviv. Guest panelists featured the mega successful co-founder of Waze, Uri Levine. And he was asked a very simple question: What do investors look for?

To sum up his answer, Levine noted that investors want to see that the entrepreneur has identified a real problem. Unfortunately, too many innovators value their solution more than the pain of others. Significantly, Levine showed off one of his favourite t-shirts, which shouts out the slogan “fall in love with the problem and not the solution”.

My role as a business mentor and coach constantly returns to this theme. Whether you are pitching to an investor, selling to a shop owner or offering a service, the message is clear. Before saying how wonderful you and your product are, understand why the prospect is listening to you. At the core, the primary answer has little to do with yourself. Internalise that fact, and your selling power should improve.

The core strength, and weakness, of Israel’s economy

28 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Yesterday, I was talking to a client in Jerusalem, an expert in mobile and app development. We discussed the importance of the role of leadership – the motivation of teams – when considering the successful outfits he has been associated with.

I contrast this reflection with three pieces of news emanating from Israel this week.

First, the results of a Dan & Bradstreet survey were published. It revealed that there are  just over 300 international r&d centres operating in Israel, which employ around 71,000 people. This is the equivalent to about 25% of the high-tech community. A further 91 multinationals are considering a move into Israel. And there is a considerable positive knock on effect to the local economies, whereever these companies are located in the Holy Land.

A separate survey from the Bank of Israel analysed how:

Israel is the global leader in the proportion of people employed in high tech – 9%, more than double the medial in the OECD countries; in venture capital investments as a percentage of GDP; and in the ratio of the added value of the information technology sectors to GDP – both goods and services.

Around 60% of the high-tech sector, including those overseas corporations are located around Tel Aviv and the costal plain. The problem is that the other 90% or so of workers are employed in relatively low paid occupations.

The question is does this matter to the government? What can it do about the situation in terms of creating long term strategic plans?

For an answer, I refer – with disappointment, if not anger – to the third piece of news. On Monday, the government decided to capitulate to two demands of the ultraorthodox factions in the coalition. The result has caused a swift and wide rift with about a 50% of American Jewry and with the diaspora in general. This is something the country can ill-afford, but the decisions do help to sustain the unity of the government.

Meanwhile, the tragic comedy continues, featuring those children supposedly being treated for cancer in a Jerusalem hospital. Following a dispute between the management and the medical team, the latter have left their posts. The Minister of Health has dismally failed to bring the sides together. And the Prime Minister has shown no ability nor will to interfere, if only because his health minister is from an ultraorthodox party.

And that is called national leadership? And you then expect the government to help traditional sectors of the economy, where most people are employed? Thank goodness that Israeli high-tech is generally kept out of the hands of local politicians.

KPIs with a difference – and with some meaning

23 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Find your KPIs! This is a standard call put out by business coaches and mentors to their clients. These are your key performance indicators that are supposed to tell a senior manager if they are producing enough or selling enough or doing whatever correctly. And magically, if it is the right number, then the world is doing just fine.

Or is it?

A few weeks ago, I commented on an article by Dr. Robert Brooks. In a nutshell, he stated that the exam results of children predicted little about their future in the world. I took this logic a step further and applied it to adults in the workplace. They tend to be motivated by many emotive factors, and not just the need for a ‘better statistical performance’ in their unit.

Brooks has just gone on to develop his argument. Reviewing the work of a developmental psychologist, Susan Engel, he looked at “seven abilities and dispositions that kids should acquire or improve upon—and therefore should be measured—while in school”. These could include reading, inquiry, conversation, flexible thinking, engagement, well-being and collaborations.

Interesting, but once again, let me transpose that theory into the work environment. Instead of just examining production performance against bland numbers, often curiously measured by some smart software that few understand, maybe there is an alternative way of thinking for managers to consider.

For example:

  • How often does an employee come up with an innovative idea?
  • How often does a person go out of their way to help a colleague?
  • Are non sales officials encouraged to bring in clients?
  • Who forgoes sick leave when they are unwell or when their is a crisis assignment to complete.

Consider your own set up. Think what would happen if all of these items and more were to improve by 5%. How would that impact on the bottom line?

I have see this so often in the past from my work in Jerusalem and Israeli organisations. The top team looks at the stats, analyses and concludes. They often miss out on the micro issues, which the computer cannot print out. And quite often these are built around the stories of individual people.

So, just as in schools, where exam results have a limited use when predicting the destiny of a child, similar restrictions can be placed around the importance of KPIs. Businesses need to think differently.

Israel’s on-going trade with Saudi Arabia

20 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Back in 1973, prompted by the Yom Kippur war, the Arab boycott of Israel really took off. One of the most notable effects were those Japanese car companies, who with the exception of Subaru, refused to do business with the Holy Land.

And today in 2017? BMW, Volkswagen, Toyota et al either have r&d centres in Israel and / or have incorporated Israeli tech into their engines. In other words, the boycott is rapidly becoming irrelevant, as Israeli services and products penetrate the heartlands of the members of the Arab League.

Let us consider Saudi Arabia, the largest country and the richest and arguably the most conservative in that political block. It is common knowledge in Israel that for years the kingdom has accepted Israeli goods. (Quite often they have been repackaged in places like Cyprus.) Secret meetings between the two countries stretch back at least a decade, if not more. Back in February 2017, Bloomberg detailed how Israeli high-tech companies were cooperating with Saudis.

As is to give this a rubber stamp, the London newspaper, the Sunday Times published an article, which claims that these ties are about to become more official. At a first level, El Al could fly their planes over Saudi airspace.

Maybe, but I urge caution. I was more struck by an item in Hebrew by Doron Peskin. He noted that Saudi Arabia really does not consider Israel as a source for widening its economic growth, as the Kingdom looks for new and alternative streams of revenues. In other words, the breakthrough – if and when it is to come – would be more of the political and strategic nature, as opposed to a commercial upheaval.

Certainly, there have been rumours of the Saudis purchasing Israel’s “Iron Dome” system against missiles. And if that is not ironic enough, all these stories come during a period when Saudi Arabia is leading the boycott against Qatar and when Israel is planning to sell some of its gas reserves to Jordan.

Yes, times are a changing in the Middle East. And even the slow moving desert kingdom of Saudi Arabia is signaling that it is prepared to consider playing a role in the revolution.

Smart goals – busted, or the path to success?

18 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Vision, goals, live your dreams – all these beautiful catch phrases seem to be bounced around freely, almost to the point of meaningless. So, when it comes to running an organization, why do business mentors and coaches like myself harp on about smart goals?

I was drawn to this question by a post from Lisa Earle McCleod: “Why smart goals don’t work and what to do instead”. She reveals that she no longer stresses the importance of smart goals. Instead, “for inspiration, you need to think bigger”. She prefers to concentrate of strategic issues. That requires measuring impact and engagement.

McCleod suggests that smart goals are task orientated. Strategic goals can be complex and definitely require creativity. And up to this point in time, I fully agree. But now let me throw back into the ring what she appears to downplay.

In a commercial world where entrepreneurship and innovation dominate – often infused by large doses of ADHD – it is easy to play up strategic issues. They are fun and have less boundaries. However, there are few organisations that survive without defined guidelines. Enter the mnemonic ‘SMART’, not just a glib phrase.

S – Specific

M – Measurable

A – Attainable

R – Relevant

T – Time bound

I have started working with a company in Jerusalem, which has been floundering. One internal complaint is that they are unable to finish projects on time, easy distracted by conflicting concepts. When I first asked what happens when work is delivered late, there was a bemused silence. Eventually someone mentioned that this impacts on revenues. So, I then asked if each project has a timeframe, to which I was treated to several embarrassed looks.

Or consider another Jerusalem-based client, who runs a start up. Life is manic. All fun, meeting loads of exciting people with incredible ideas. However, the CEO has a unique habit of not moving ahead. Why? Because they have no rules to deliver the new tech on time. So, for all the hype, at the core of the business is inertia, and the proposed sales timetable recedes into the distance.

It is essential for a company or unit to focus on sales. However, push back or ignore those boundaries and you cease to have a clever business model.

Israeli innovation – 46% of the next part of the story

5 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

In a series of articles on Israel, CNBC television has noted that “Hightech makes Israel dream of other industries”. Quoting Avi Hasson, the former head of Israel’s Innovation Authority, they reported:

Traditional definitions of high-tech and low-tech are out of date. Everything is getting technologized. There’s not a single sector that’s not being disrupted, or that doesn’t benefit from innovation.

As if to prove the point, CNBC went on to highlight Israel’s move into space tech, a field previously confined primarily to the ‘big nations’. This is after Israel has set the standards in mobile tech, accounts for around 15% of international investment in cyber security, and with some irony – considering the oil price wars of the 1970s and 1980s – is now a pioneer in car technology.

However, Hasson makes a important point. Israelis look for the opportunity to innovate, and this is not restricted to high-tech. Here are three brief case studies to illustrate what I mean.

ITEM 1: Sitting in my office in Jerusalem last week was a team from a small private company, closely involved in social services. Established for some years and with a clear set of revenues, they are trying to create a new strategic plan. To put this another way, they are prepared to rip up their existing business model and start again.

ITEM 2: About a week and a half ago, my son asked for a ‘free consultation’, as I bought him brunch. He wanted to know how he should combine his studies, while also developing the concept of his start up. I encouraged him to look at the bright side.

Over the past 18 months, he has set up an NGO for a subject that he is passionate about. This has involved defining the potential market of the NGO and what content it can provide clients. Further, he has recruited a team of volunteers, who are now motivated and dedicated to the cause. Last month, they held two successful events. As he clearly understands, this process is very similar to that of a start up. In other words, with some patience and a great deal of determination, there is a good chance that he will come through on all levels.

ITEM 3: Israel has a biblical connection to wine. A bunch of grapes is the symbol of the country’s tourist industry. But whisky, well, that is another story. It is now evident that “Milk and Honey” is now longer just another phrase from the time of Abraham. It is the name of the Israel’s first distillery. It was established as the result of a chance conversation between some young entrepreneurs about five years ago.

The factory is located in southern Tel Aviv, which bears few similarities to the glens of Scotland. And yet the team has raised money via a crowdfunding campaign and it had secured the services of one of the industry’s prime tasters. Israel’s first ever single malt whisky – over three years in a cask and released at 46% strength – is soon to hit the shops.

And whilst this latter form of innovation and entrepreneurship may not be to the accord of everyone, these anecdotes go to show how the Israeli economy has emerged. As described above, in Israel even the most traditional of industries are today part of the world of high-tech.

Israel’s economy – 50 years since the 6 Day War

2 June 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Israel has spent a week marking 50 years since the onset of the 6 Day War. A pre-emptive strike saw a tiny country change overnight. Jerusalem was reunited. The West Bank and the Golan Heights commenced on a period of unprecedented economic growth.

It is difficult to ignore the negative publicity that Israel has encountered since then. Putting that noise to one side, a series of Israeli economists posed the question if the country has benefitted commercially from the military miracle of June 1967. The financial newspaper, ”Calcalist” summarised some of the numbers and the observations.

As a starting point, Israel’s fledgling economy invested 9.9% of its GDP in defense in 1966. A decade later, that number had soared to over 35%. Over the past decade, the ratio has steadied at around 6-7%, of which nearly a quarter is devoted to pensions and similar indirect outlays.

And how were those expenses financed? Simple; badly, via printing money, an exercise that imploded in mid 1985, when prices and wages had to be frozen.

It is worth noting that the immediate period after 1967 was marked by an economic recession and high unemployment. It was only by 1972 that the economy began to see a marked improvement, which was nipped in the bud a year later with the Yom Kippur War. The real boom only followed a remodeling of the economy in 1985, which fortunately was to coincide with the high-tech era.

Israel’s current population is approaching the nine million level, of whom about 400,000 live in the West Bank and the Golan Heights. Around two-thirds classify themselves as religious or observant Jews.

  • Even though there are 14 industrial zones in these areas encompassing about 900 businesses, they contribute less than 1% of the total value of the country’s exports.
  • Per person, the government invests around 3,000 nis in these regions, compared to about 2,00 nis for other peripheral towns in the country.
  • One estimate puts the total government investment in the West Bank and Golan Heights at 826 million shekels in 2016 – about US$225 million – down from 990 million shekels in the previous year.

This is not a judgment paper on what could have been and why. This is not to say where resources could or should have been invested. As every first year economics student learns, economics is the science of making choices – the allocation of resources.

Today, Israel is a full member of the OECD. It hosts over 300 leading multinationals – Porsche is the latest member of that club. There is freedom of worship for all. It shows how much can be achieved, if you concentrate on peace rather than looking for war.

Israel – The ‘Start Up Nation” in numbers

30 May 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Israel is known as the ‘start up nation’, a wonderful compliment for a country which is 50% and whose economy was effectively bankrupt back in 1985.

And today? Just look at the news for the past week alone:

A) Hexadite, a cyber company set up in 2014 and which employs 35 people, was bought out by Microsoft for US$100.

B) NSO, which is contracted by governments to protect mobiles, is now valued at around US$1 billion, after several high profile contracts in the past year or so.

IVC Online, which has been tracking investments in Israeli corporates for some years, released in April a fascinating survey of the progress of the ‘start up nation’ over the past decade and beyond.

According to figures prepared by the high-tech research firm for ‘The Marker’ (newspaper), 653 start-ups that had been in business for at least four years closed up shop in Israel in 2014 – the latest year for which there are figures – up from 630 in 2013. By comparison, the number of companies started was 1,290.

Now, it must be said that these ratios are similar to other countries like America. But I would like to summarise some of the other findings:

Just under half of all start ups are located in Tel Aviv. And over 90% of the entrepreneurs are male.

In 2005, 553 starts ups set off on the path to glory, where as 236 closed down. By 2014 as noted above, the respective figures were 1,290 and 653.

Of the approximately 10,000 companies created since 1999, 54% are still in operation. A further 6% have been bought out. Of the later, just under half were sold at a loss.

Looking solely at 2016, 54% of the exits were valued at under US$5 million. A further 9% at over US$100 million.

And where did the money go to in 2016? 35% – software; 18% – telecomm; 17% – life sciences; 16% – internet; Much of the rest went to cleantech.

What are the takeaways from all of these and other statistics? Naturally, everyone has an opinion on what could have been and what still needs to be done better. However, I think there is another way to consider the situation, viewing it as a ‘work in progress’.

Last week, Israel hosted its annual Biomed conference in Tel Aviv. In the first week of June, Geektime will be operating a major Techfest over four days. ISDEF, one of the world’s most prominent HS conferences, will also be held in Tel Aviv. And Techcrunch are hosting a ‘pitchoff’ on 27th June.

In other words, the party is nowhere near over. There is more to come. And it is not too late for others to learn about Israeli society’s box of innovative tools.

An alternative approach to assess if you and your managers are performing

25 May 2017
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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Readers will know that I am a big fan of Dr. Robert Brooks from the field of clinical psychology. His latest newsletter considers how for decades schools globally have probably incorrectly measured the development of children. And he quotes a colleague, Susan Engel, who wrote:

Most tests used to evaluate students, teachers, and school districts predict almost nothing except the likelihood of achieving similar scores on subsequent tests.  I have found virtually no research demonstrating a relationship between those tests and measures of thinking or life outcomes.

In other words, if you are the dumb one in class, it does not mean you will fail in your career. Apply that to yourself, back whenever. Or what about your kids today? And then Brooks goes on to state about his own work:

In what has been labeled in the fields of psychology and education as the duality of “process vs. achievement,” I found that understanding the process by which each child learned proved to be more beneficial than the test score achieved. 

That last line made me pause for thought.

What happened if I was to transfer that same conclusion, but apply it to adults. After all, I am a business coach and mentor. Indirectly, CEOs and managers often ask me to judge them and / or their teams on the basis of results – sales figures, production levels, or otherwise. Is this actually the best way to go about things?

For example, I was visiting a client this week in the Jerusalem area, who demanded that I set specific targets for a group of workers. If they achieved these figures, they are to receive a bonus.

I responded that their is significant literature, which confirms that motivation is not just based on numbers and a few extra dollars. Adults are equally likely to react positively, when corporate leaders play to five key feelings:

  • Creating a sense of belonging
  • Finding a sense of purpose
  • Realising that an employee can achieve
  • Being happy
  • Being excited about their tasks

My takeaway for my profession is clear. I should not be concerned solely with what people achieve. Just as important is to consider the process and trail of how they got there. Find the chinks and the strengths, and then I can find how to help the client even further.

Israel’s contrasting economy – not what you may expect from intelligence

24 May 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

“Israel’s economy is a study in contrasts“. Thus headlined “The Economist” magazine a few days ago.

The article is wide in its scope. For example, it highlights the desert city of Beersheva as a world leader in creating cyber technology. And that is just for starters. The economy grew at 4% last year. Unemployment resides at a lowish 4.3%. Public debt at 62% of the GDP is one of the best ratios in the OECD. The shekel currency has appreciated by 13% against a basket of leading global currencies. And so on.

The magazine does feature the weak side of the Israeli economy. Restrictive import and licensing practices keep the cost of food unnecessarily high. Productivity stats are poor. And with boring predictably, the authors cites Israel’s defense policy for the main cause of the a weak Palestinian economy. Thus, in real terms, “Gazans are about 25% poorer today than they were at the time of the Oslo Accords”.

This is an argument that sounds politically powerful. However, it bares up, neither in the numbers game nor against the facts on the ground. First, as I have mentioned in the past, when the World Bank examined the Palestinian economy prior to 1994, when it was governed by Israel, “the annual growth rate (for the period 1968 to 1999) establishes itself at 5.5%.” As the author Sebastian Dessus observed, this was one of the highest rates in global terms, even allowing for substantial population growth.

The point is that this begs the question as to why the Palestinian politicians refuse to allow cooperation with Israel.

And then there is 8200, renowned as Israel’s high-tech unit in the army, whose geeks produce software and hardware that James Bond filmmakers cannot even dream about. In parallel, for some years, many of the alumni of this elite group have struck out in the start up world. And it is no secret that against what might be considered assumeded norms from around the globe, they have been openly seeking cooperation with the Arab sector in Israel.

Well the 8200 “Hybrid Accelerator” has just initiated its latest round of intakes. They include SAF, Brainkos and Shareshipper to name just three of the seven involved. One cardinal condition for acceptance into the programme is that each team must include at least one Arab member on its staff.

It is this form of contrast which sets the Israeli economy apart, especially from those of its neighbours. This approach, embracing the views of all religions and backgrounds, that is one of the key reasons why Israel has become known as the start up nation. And that is why “The Economist” is able to report on such positive economic stats for the Holy Land.

Jerusalem in 2017 – a city living up to its name

20 May 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

May 2017 in Jerusalem – week commencing Sunday 21st – and the city could rarely have been more busy.

President Trump arrives on Monday lunchtime, creating havoc to the traffic for 36 hours. Then on Tuesday night celebration begin, commemorating 50 years since the reunification of the city following the 1967 Six Day War. At the end of the week, the mosques will begin the calls for the month of Ramadan. And a few days after that is the holy festival of Shavout, where Jews flock to the Wailing Wall at 5.00 in the morning, as Christians celebrate Pentecost. Phew.

Jerusalem has come a long way since 1967. The period preceding that was marked by tension. The Jordanians ruled the Old City of the eastern approaches. They boarded up the gap in Jaffa Gate, one of the main routes to the Wailing Wall. They destroyed vast parts of the cemetery on the Mount of Olives, fortunately missing the tombstone of my great grandfather. In fact, when the Israeli cabinet met during the build up to the war in 1967, the minutes reveal that the participants could hear sporadic shooting in the distance.

The current mayor, Nir Barkat, has released a video ahead of the Trump visit. It is an enlightening explanation, demonstrating how barbed wire has vanished. In its place is a multicultural city that is becoming a leading centre for high-tech in the Middle East. And the proof is readily available:

  • Yarok Food Safety Fast Testing System has just secured a UN Innovation Award. The company enables fresh food producers in developing countries to detect hazardous bacteria within 45 minutes.
  • US Medical device conglomerate, Medtronic, is about to open a r&d centre in the holy city.
  • Last week, Snapchat founder, Evan Spiegel, was in Jerusalem, clearly scouting out more targets for partnerships.

The name “Jerusalem” has disputed origins. Some refer to the word ‘shalom’ or ‘peace’. Others see its meaning in the term ‘complete awe’. And that is just to give a sample of the interpretations.

However you look at it, Jerusalem in 2017 is a vibrant, open city, that welcomes visitors who include President Trump and aging rockstars. It is a united city that has so much to offer the rest of the world. I wish Trump well as he is whisked around the holy sites and more. It is only because Israel is a democracy, the single democracy in the Middle East, that he is able to enjoy such a tour.

Does your business coach inspire you?

12 May 2017
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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

A business coach or mentor can take on many guises. When starting out a course of sessions, the question lodged in the mind of the client is often ‘will this really do me any good’?

Well, there are two angles to this question. In my view, and I have practiced the profession for many years now, much has to do with the fact if the client is willing to change. After all, they have called in the expert, because something is not quite right in the organisation. Are they prepared to move on?

In parallel, it is the role of the coach to motivate towards the ‘brave new world’. Now, some coaches are rich and famous, so that we latch on immediately to their latest words as they are twittered around the globe.

Then there are the mentalists. Call them showmen or frauds, but they have the power to inspire. Yesterday, I went to a private session with Uri Geller, he of the bending spoons fame. His message was that if you really believe with all your mental capability that something will happen and you concentrate on that subject, in certain circumstances the change will come about. Geller went on to demonstrate what he meant in a most impressive fashion.

However, for most people, they end up scheduling weekly sessions with somebody unknown, and then hope for the best. And then the onus falls on the shoulders of the coach or mentor to motivate, each and every time. It ain’t always so easy.

Take yesterday. However much I encouraged and threw out questions to the owners of a business in the Jerusalem area, I was met with a negative response. It was a case of it can’t be done, too expensive, who cares, or whatever. Then, I had an idea. I encouraged them to learn about their operation by studying successful competitors. They asked the purpose of this action. Simple, I was responded. Years previously, they had taken up a profession. I asked them how this had come about. And the answer was by studying or learning.

Amazingly, the rest of the conversation flowed.

Some achievements are prompted by an out-of-the box approach. One former client was a difficult cookie to jolt ahead. Then I had a brainwave. I returned from an overseas holiday with a token but symbolic memento of a hobby of his, a limp straw of barley. He took it, promising to go there himself. He got the message. As we finished our course of sessions, his business appeared to pick up. (And I have just heard that next month, his dream will come true.)

Then there is sport. As some of you may know, over the years, I have taken up running. This spring I completed three marathons… to my complete surprise. So far, this has prompted four people to move into the sport or go for further distances. In one instance as I was running through Jerusalem, I happened to see a client, who was stunned to watch me pushing myself forward. If this is leading by example, I am happy to take it on.

The point is that a business mentor has to find a unique method to inspire each individual client. That process is kicked off by the client themselves, sincerely wishing to change. After that, the ball switches back to the court of the mentor. that is when the real challenge comes in.

Jerusalem and Holocaust Day – a reminder we all need

24 April 2017
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Holocaust Day in Israel is usually held towards the end of April. The exact date each year recalls the Hebrew day of the desperate and tragic uprising of the Warsaw Ghetto. The BBC posted today that:

Israel’s Holocaust memorial, Yad Vashem (“A Memorial and a Name”), has been working to recover the names of all the victims, and to date has managed to identify some 4.7 million…. (and) has collected 2.7m Pages of Testimony.

Jerusalem is the home of Yad Vashem. Located towards the south west of this special city, the museum looks westwards, directly and deliberately towards the former wastelands of Europe.

You always know when it is Holocaust Day in Jerusalem. The weather closes in. The evening, when the services of remembrance begin, is almost invariably chilly. (The previous day had seen a heat wave!) Throughout the main parts of the city there is a delicate quiet, which cannot be described as peaceful. And when the sirens ring out at 10.00am sharp each year, it takes the birds and wind to break the silence.

Approaching Holocaust Day, you always wonder what more is there to learn about this horrendous event. It is over 72 years since the camps ceased to function. Isn’t it just a matter for the historians. And yet, fascinating stories never cease to emerge from the ashes, and many are to found in Jerusalem.

The Parliamentarian Rachel Azaria lives in Israel’s capital city. She recently discovered a letter from her great-grandmother. In 1933, as Hitler was sweeping to power, the lady wrote to the ailing President Hindenburg: “Is incitement against Jews a sign of courage or cowardice, while Jews are only one percent of the German people?”

If that was not brave enough – call it chutzpah – what is more incredible is the response.

Hindenburg responded to Friedman two days later saying he was opposed to violence and even included a handwritten response from Hitler on the letter, who claimed, “The claims of this woman are ridiculous lies. There was never any call for pogroms.”

Azaria owns the original letter, signed by the future dictator himself.

Not far from Azaria lives Daniel Schwab. He grew up in South Africa and moved to Jerusalem many years ago. His Facebook post today is chilling, as he details at least 12 members of his family who were murdered during World War Two. (Names can be located at the Yad Vashem registry).

Last week, Daniel’s Facebook page detailed how:

In May 1933, a young man named Rudolf Schwab (my grandfather) fled Nazi-occupied Germany. His departure came at the insistence of a close friend who later joined the Nazi Party. Schwab eventually arrived in South Africa, one of the few countries left where Jews could seek refuge, and years later, resumed a relationship in letters with the Nazi who in many ways saved his life.

“From Things Lost: Forgotten Letters and the Legacy of the Holocaust” is … an extraordinary collection of letters discovered in a forgotten trunk. (A near unique story).

(However,) here’s one of the craziest parts of the Schwab family story: Rudolph’s father Max was a loyal and proud German who served in the German army in WWI and was decorated for bravery and distinction. His commendation was signed by none other than…Hitler. Blows the mind.

And today, what do we see in Europe? Yesterday’s election result was a triumph for the right wing National Front Party of Marine le Pen. This force is riddled with anti-semites. Meanwhile, in London, Jeremy Corbyn’s attempt to gain power in Downing Street will be supported as ever by the Momentum, which the local Jewish community found many of its members to be equally loathing of Jews and / or Israel. Unfortunately, but for the wrong reasons, this too blows the mind!

And that is why Holocaust Day, especially when launched from Jerusalem, is so important. It offers a chance to remember that mankind has spent thousands of years intentionally picking out Jews and inflicting frightening horrors upon them. And that is why the phrase ‘never again” is so appropriate, when retelling and retelling and retelling these facts.

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