Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

Israel, the start-up nation, where growth is powered by continuing investment from overseas. Israel has created a culture of innovation in the past generation, and much of this comes through necessity. Military issues have forced the land of the Jews consistently to be one step ahead of its neighbours.

The Talpiot Unit is a classic example of this leading edge. Teenage geeks are picked out in their last years of school. They are then drafted into this special intelligence unit where they spend a minimum of three years developing solutions that….well, who knows what they get up to?

And from Talpiot, many find their way into the core of Israel’s high-tech sector or even become entrepreneurs themselves. A typical example of this is Via, which was set up in 2012 by Oren Shuval and Daniel Ramot, yes ex Talpiot servicemen. Via is a direct threat to the Ubers of this world. AS their website encourages you: –

Book a ride and in under a second our algorithms match you with a vehicle going your way. Via makes sharing with other members seamless and is nearly as fast as a taxi.

Via employs over 200 workers, primarily in Israel and in the USA. It has raised serious capital in the past and from some notable names. These include Hearst Ventures and the Russian mogul Roman Abramovich’s Ervington Investments. The latter is the owner of Chelsea Football Club.

Via has just secured an additional US$250 million in funding. The leading investor is Daimler’s Mercedes-Benz Vans unit. Evidently this has major strategic implications.

However, it is important to stress that this is definitely not the only deal in recent times, where large car manufacturers have looked for innovative salvation from the Israeli market. In May 2016, VW bought into Gett Taxi, which was followed a few months later by a move for CyMotive Technologies. This summer, Toyota invested in Autotalks. Ford, Skoda and others also have their stories to tell about Israel.

Following the Arab boycott since 1948 and encouraged by the oil price wars starting in 1973, Israel became the pariah of the car industry.  Today the opposite is true. It would be interesting to learn how much these companies lost out by caving into malicious political pressures, never mind what this forced consumers to forgo.

My second week in the UK has been based in Glasgow, thousands of miles away from the bustle of Jerusalem and many of my clients. On reflection, the holiday has reminded of a valuable lesson in business.

While my wife has been biking around the wonders of Glentress, I have had the thrill of visiting some amazing places. I took a guided tour of Stirling Castle with its fascinating history and stunning views. I booked a hired tour to Loch Lomond. I could have sat there for hours, contemplating, taking in the amazing scenery. And if you check my Facebook postings, you will find out just how many distilleries I visited.

And it struck me that there was a common feature running through all the site visits. The staff I met were without exception incredibly friendly and helpful, with a smile. This applies right down to the student parking attendant at the castle, even if he was clearly bored out of his mind with his summer job.

Another feature was that many of the people I encountered had been in their jobs for several years. They loved working where they are. To prove my point, the guide at Edradour Distillery, shall we say a touch mature in age, admitted that he had only been there for 12 months. However, he was full of anecdotes and extra information, as if he had been employed since birth.

And there was Saturday in Glasgow itself. In the bustling Buchanan Street, I visited the stand of the Glasgow Friends of Israel, engaging with passers-by and gently informing dozens of Israel’s pluralistic society. In contrast, 200 metres away, a Palestinian solidarity group was pouring out hatred in a contrary direction. Whenever I passed by, it was noticeable that they drew less people to their table.

Later that evening, we visited the famous pub, The Pot Still. The lady who served us knew her whiskies and could offer professional advice on each one. After we left, we popped in on The Central Hotel, where the desk manager took five minutes out of his valuable time to give us brief yet brilliant history lesson of the place – Sinatra, Marilyn M, Harry Lauder, Gene Kelly et al.

As a business coach and mentor, I am often asked by corporate decision makers how they should react to issues involving staff and personnel. I always try to stress the difference between managing situations as opposed to motivating individuals. And this encouragement can come in many forms – not just financial; a smile, a carefully chosen word of empathy, the addition of a more interesting task, or just simply listening to their advice.

Evidently, all but one of the above cited examples feature people thrilled by what they are doing and imparting that to others with a smile. You want to go back. I assume that they are well supported or cared for by seniors with invisible faces to you and to me. In the case of the exception, I recall few instances where bile is able to promote long-term success and achievement.

Loch Lomond, Arran, Edradour, et al has turned out to be an incredibly motivating adventure for me. Maybe this wee picture can enlighten you as to what I mean and thus encourage others to learn this valuable lesson.

Walk down the street in Israel and it would appear that everyone is eating or playing with their mobile phone, or both. Israel is the champ for a quick dunk of pita in humous. However, now it appears that there is a rival on the scene. Believe it or not, I am talking about seaweed.

Health blogs, natural food shops, fitness freaks – around the world they are all looking for the next wonder food. Goji beans, almond nuts, coconut oil, and broccoli are just some of the items frequently mentioned. Seaweed has often been considered, but few have succeeded in commercialising the slimy substance. Few that is until Ofer Sela took up the challenge.

Ofer’s company, Seakura SST, is located near Michmoret, about half way along the coast between Tel Aviv and Haifa. They cultivate the seaweed inland in a sterile environment. The result in their words is “not only is super seaweed bursting with nutrients that are essential for growth, it’s also a simple way to sneak some extra vitamins and minerals into favourite foods”.

 The food is suitable for just about all of us: young and old, vegans, athletes. This looks to be the start of something big. The global sales market is currently estimated at close to US$10 billion, rising by about 10% annually.

Seakura is already available in several European countries. It has just locked a deal with Whole Foods in the UK. Assuming that this trial is successful, the retailer will find space for the product in their 432 outlets in America.

Looe is a quaint small town, located on England’s southern Cornish coastline. Yes, it is pronounced the way you might fear to call it. And yes, while it might seem just a quiet, idyllic spot for tourists, there is a lot of commerce going on in the former smugglers’ coves.

My wife and I are camped down in the village, putting about 2,500 miles between me and my business mentoring clients in Jerusalem and its surrounds. And yet, I just cannot escape the subject of coaching.

For example, we set ourselves up in an airbnb and turned on the TV. Struggling with lousy reception, we hit upon the programme “Dragons’ Den”. Here, budding entrepreneurs pitch their start ups to investors. The anti-hero of this story has a very clever idea for monetizing public sports’ facilities.

However, when questioned about the distribution of profits to date, it became very evident that he was hiding something. It turned out that he had incurred a fine to the tax authorities, which he was seemingly reluctant to disclose.

And that was silly, to say the least. In reality, those investors were his market. And he had deceived them, when all he was required to was tell the truth openly. He had broken that relationship of trust with his market. They rejected him flat, despite his clear talents to build up a new business from scratch.

As I was checking in the newspaper for what to watch next, I hit upon an article about James Timpson. He has 1,925 sites in the UK. He reheels shoes, duplicates keys, prints pictures, and he makes a huge fortune in a depressed market.

What’s his skill? It would seem that he knows where his market is located. First, as he observes, these are not exactly services that will lose out to the internet. As for site placement, favourite choices are next to McDonalds. Failing that, they try to be as close to public toilets as possible. For good measure, the journalist accompanied Timpson to one of his most successful franchises…..a prefab structure in a car park of a large supermarket!

I also glanced at an article about Generation Z. These are people who are so determined to have everything, and immediately, that they actively look for apps that provide delivery services even at 3am in the morning.

This reminded me of a true story a couple of years back, when I was offering some pro bono advice to a friend of my son, both of whom had just finished three years military service in Israel. The friend wanted to set up a sandwich delivery service, at night, in Tel Aviv. I could not understand the concept. Surely, there were not enough people awake at those hours to justify any initial injection of resources?

The 21 year old entrepreneur was quick to explain himself. In my naiveté, I did not know that after taking certain drugs, people need to eat, immediately. In other words, his  business model was based on the growing abuse of young Israelis of their own bodies.

Sad, but clever thinking. It will be interesting to see if he goes on to emulate J Timpson. Meanwhile, Sitting in Looe has been very educational for me.

The cities of Charlottesville and Barcelona are both steeped in history. They are also connected because this week outsiders ensured that innocent bystanders suffered horrific acts of violence. However, the links between the two go beyond these facts, drawing in Brussels and Jerusalem along the way.

Throughout much of August Thursday 17th, much of the free world was occupied in condemning President Trump for his seeming refusal to condemn outright the march of Nazi thugs in Charlottesville. Trump was understood to be appeasing the right-wing demonstrators, who had terrorised locals, shouting out racist and anti-Semitic expletives as they walked along undisturbed by the authorities.

The attack in Barcelona targeted tourists. And yet in a city full of visitors from overseas, few members of the foreign press have commented on the fact that the ISIS-linked terrorist chose to commit his act of multiple murder close by to a Jewish kosher restaurant, Maccabi.  (For the record, the manager of the establishment is a Turkish Muslim, whose immediate actions may well have saved the lives of many more.)

Is the Jewish connection a coincidence? Recall for a moment the awful incident in Brussels airport in March 2016. Of all the spots in the area to pick, the attack took place right close to the El Al check in counter.

Trump’s actions this week were interpreted as partially justifying the bigotry. They began to remind me how for years since the 1990s, Western leaders have partially excused Palestinian terror on Israeli citizens. In this case, the ‘get out of jail package’ seems to stem from an understanding that in some way Israel has been acting illegally / prohibiting peace.

What these pacifiers forgot and still forget is that terror is terror is terror. Terror breeds off funding, sensational and inaccurate reporting, and politicians who do not apply the rule of zero tolerance.

Trump’s response opened the door for poor coverage. He did not state that the Ku Klux Klan and its associates are an abomination. He did not condone as he should have done, unequivocally. As for the Barcelona tragedy, the press have failed to connect the dots. The act was perpetrated by a person indoctrinated in hatred., where he was bale to target Jews, Israel, Christianity and the West in one.

For over a decade now, the authorities in Jerusalem have hosted numerous delegations of politicians as well as senior police teams and emergency services from the West, who have come to learn how cope with terror. There are two themes to the visits  – how a democratic society should defend itself and how can authorities react speedily to any incident.

For all the repulsive hatred of ISIS inspired attacks, they can neither hide nor eliminate the fact that there is a reason why over 300 conglomerates have R&D centres in the Holy Land. There is a reason why Israel is the one country in the Middle East, where the number of Christians is rising or where the new senior doctor in the army is a Druze. And there is a reason why Israeli incubators increasingly provide room for Muslim centric start ups.

The acts of hatred in Charlottesville and Barcelona are a rejection of societies based on pluralism and mutual understanding. These are the key components of countries with strong economies and where opportunity is offered to almost all. Trump and Europe’s leadership are advised to recall how Israel has shown what can be gained by denying such forces of evil their supplies of ‘air and water’.

In a week which saw considerable political instability in Jerusalem and Israel’s largest company, Teva, lose 20% of its share value, the international commercial community still saw fit to back the country’s high-tech sector, and in no uncertain terms.

Neuroderm was founded in 2003 and is located in the heart of Israel’s biotech industry in Rehovot, south of Tel Aviv. It develops treatments for Parkinson’s Disease. And it caught the eye of investors , when it announced a cash take over by Japan’s Mitsubishi Tanabe Pharma Corp for nearly US$1.1 billion.

What is amazing is that much of the previous investment also came from external investors. That is to say, according to Neuroderm’s CEO, Dr. Oded Lieberman, with a few minor exceptions, local VCs ignored his approaches for years. As they say, look who is smiling now.

Also licking their lips are the founders of Plarium, a social gaming platform. The company, founded in 2009 and today employing 1,200 people, has been purchased by Aristocrat for US$500 million. They are based in Australia and the largest manufacturer of gambling machines. Significantly, the deal could be worth an extra US$200 ,illion dpeneding on future sales’ growth.

These are no isolated exits. Two weeks ago, six Israeli start-ups, including SimilarWeb, Iguazio and PermimeterX, announced on the same day that they had raised a combined US$142. “EMK Capital LLP announced that it has agreed to acquire a majority shareholding in Luminati, the enterprise proxy network division of Hola Networks, at an enterprise value of $200m.” And in a separate move, “US shared workspace company WeWork has acquired Israeli B2B sales and market intelligence developer Unomy.”

You have to wonder. If Israel was managed better – better politicians and better strategists in some of her larger companies – just how much more well off would the country be? In other words, how much is the country missing out because of ineffective leadership at the top?

Conversations with several of my clients in July centred around the observations that they are not making enough sales. As their inspiring business coach and mentor what could I suggest.

I could point them to a recent blog on the Harvard Business Review: “7 reasons salespeople do not close the deal“. Very interesting, but not specific enough. A better lead is the infographic: “16 tactics buyers use in sales negotiations”. However, I must take my hat off to Deepak Malhotra, Harvard professor and author of ‘Negotiation Genius’.

In his talk Malhotra explains over twenty techniques to secure a victory in a negotiation bid. Key point, which the other prior links allude to: Be credible. Show that people can afford to believe in you.

A shining example of this occurred a couple of days ago with a client of mine in Jerusalem. Call her Andrea. Andrea received a nasty email from a customer, who claimed they had the backing of several others. Bottom line – why had Andrea treated them so badly, and in effect taken their money and run.

I encouraged Andrea and her team to call each individual, professionally explaining in detail the circumstances. Without criticising anybody, they showed how each customer was benefiting from the changes initiated. Without exception, all have since maintained their commercial relationship with Andrea. She had strengthened the trust between all the parties concerned.

The element of trust is also at the core of the matter when big brands get things wrong. For example, do you remember the crisis with British Airways a few months back? After a computer failure and PR catastrophe, would you rush to book with them again?

Globally, fewer governments are prepared to take America at its word on many an issue, as the Trump administration shows a continued capability to change its opinion at will. At the other end of the spectrum, many countries in central Africa had felt compelled continually to oppose Israel in international forums. This mistake is being rectified as the government in Jerusalem has repeatedly the importance of sharing its technology with those less well off.

Note that what can take years of brand creation, many a posting of blogs, a huge investment of resources and more can all be destroyed with one innocent mistake.

I summarise with a beautiful story that I heard from an international salesperson. They explained to me how when they create a deal, they try to “teach” the potential client about the advantages of what they can receive. It is a wonderful analogy, which brings home the point of creating trust, when you want to make a sale.

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.

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, the Holy Land, an important spiritual centre for the three monotheistic religions. Israel is also an important location for the secondary meaning of the word ‘spiritual’, and here I am referring to the alcoholic kind.

The bible is littered to references to wine, starting with Noach in Chapter 9 of Genesis. Today, Israel’s wine industry will happily try to compete with the global best at international wine awards. Over the past decade, the Golan Heights winery has consistently achieved great success. And the national industry’s continuus improvement has been noted in the 2017 World Wine Awards of Decanter Magazine.

However, what many people may be surprised to learn is that Israel is now sprouting a whisky industry. Still very much in its infancy, the signs are clearly there.

For example, last night I attended an open house at the Milk and Honey Distillery in Tel Aviv. It marked the official launch of the first whisky to be distilled in Israel. Bottled just over three years ago at 46%, it was recasked and moved back to the distillery during its third year.

Now, I am only a bit of an amateur whisky buff, but I have to admit this product really is a very impressive start. the company was under the initial supervision of the master taster, the late Dr. Jim Swan. I was presented with a whisky with a light brown colour and a sweet citrus smell. The first taste was much stronger than I had expected, but the surprise was quicker replaced by a gentle orangey, fruity flavor. The finish had a hint of chocolate and left you wanting more.

Whisky tasting – 27th July 2017

 

One of the ways that Milk and Honey have funded their start up is selling gin, a known by-product of the industry. This leads me to the north of the Israel, where a Canadian entrepreneur by the name of Zibell has set  up the Golan Heights Distillery.

This outfit did initially release a whisky less than three years old. To be polite, it tasted as young as it was. However, their Holy Land Gin has just been made a Silver Winner in the 2017 International Wine and Spirit Competition (IWSC). Hopefully, their true whiskies will also reach such standards.

Is there a takeaway from this? First, physically, very much so. I own a bottle of Milk and Honey whisky. What all these innovative Israeli ventures do demonstrate is that there are few barriers to what can be achieved in the Holy Land which is 50% desert.

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.

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!

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 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?

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.

Has the Israeli start-up juggernaut ground to a proverbial standstill? Exits in the first half of 2017 were valued at just 20% for the whole of the previous year. The value of an exit at US$34 million was considerably less than the past five years. To be blunt, the number of deals and the amounts are way down. Surely time to panic.

However, it would seem that there are explanations. New trends are emerging. The facts on the ground indicate much more.

First, the report was released by IVC. They point out that there is currently a general ‘hold-off’ globally in large investments. Second, and as confirmed by a senior partner in Ernst & Young, Israel is seen as a great place for new tech. However, there is a move to purchase for strategic reasons. Israel is not quite seen in that category, for now.

On the other hand, look what has been happening on the ground.

  • “International cyber security giant Symantec Corporation announced that it is acquiring Israeli cyber security company Fireglass. Media reports in Israel say that Symantec will pay out $250 million.” For the record Fireglass was set up only 4 years ago. To date, it has secured US$20 million on investment.
  • Narendra Modi became the first sitting Indian Prime Minister to visit the Holy Land. He came waving a very large cheque book, seeking to learn about innovation.
  • As Prime Minister Netanyahu was finishing off with his Asian counterpart, he had to rush off to host the head of J. P. Morgan Chase, the largest bank in America. Jamie Dimon’s financial giant purchases around US$10 billion of technology annually. He announced that the he is looking to set up an r&d centre in Israel with about 200 employees.
  • On a quieter level, a powerful delegation of ‘women leaders’ from Australia recently visited the country.  In a very telling summary, Bernadette Conlon summed up what she had learnt from her tour, especially in regards to promoting innovation:

Israelis understand the power of diversity, and how it adds value in the business world. Companies looking to launch international operations can easily find skilled labour in a matter of days. The country is packed with native English, French and Russian speakers. Gender diversity is also prominent, with around half the startups we visited led by women, many of whom are young and have families.

Measuring the trend amongst exists is useful. However, the numbers must be analysed in context and over the long term. For now, Israel’s journey as a start up nation is progressing very handily, and the country is open to all to learn from its achievements.

At the end of 2016, Amazon super-boss, Jeff Bezos, made a swift and secretive visit to Israel. Why invest in Israel? Well, it is the start-up nation, and Amazon has seen the number of its new patents rise from 7 in 2009 to 78 in 2016.

This  move was initially expected to generate an additional 800 jobs. Well that has all changed for now. Utilising two enormous facilities in Tel Aviv and in Haifa, Amazon will employ around 2,500 Israeli geeks, who will be developing technologies for microprocessors and for the cloud. By all accounts, the Israeli teams will also support Amazon’s venture into supermarkets.

Its been two years since Amazon purchased Annapurna Labs for about US$360. And more acquisitions are expected. It is an innovation and entrepreneurial landscape that Amazon cannot afford to be away from.

To give an idea of the impact Amazon, consider the following rental stats, drawn up in today’s issue of the “Calcalist” (The Economist).

(Sq m) Amazon Microsoft Apple Google Facebook
Tel Aviv 25,000     14,000 5,300
           
Herzylia   13,000 16,500    
           
Haifa 12,000 7,400 4,000 1,700  

Apple and Microsoft employ about 1,000 people. Google has taken on around 600, while Facebook has recruited 100 members of staff in the Holy Land. It comes of no surprise then to learn that there is somewhat of an inflationary bubble in high-tech wages this year.

In a week when Visonic is moving a 400 strong person factory from the periphery southern desert area to China, the news from Amazon is more than welcome for the Israeli economy. It is sure to generate a knock effect on the service enterprises located close to tis vicinities.

Who will be next to follow Bezos’ move in Israel?

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.

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.

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.

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