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.

Karnit Flug, the Governor of the Bank of Israel, was very clear in her most recent survey. Israel’s economy is doing well.

Unemployment is well under 5%. New trade markets are being developed, as European partners continue to struggle after the credit crisis fall out. FDI investment continues to turn up.

Just look at some specific recent key-note successes: –

  • Microsoft is about to rent invest around US$1 million per month in rent for new office space in Herzylia just north of Tel Aviv.
  • BMW has announced plans to set up an r&d centre in the Holy Land, via its tech arm “Here”.
  • Tourism in November 2016 reached an all-time high for that winter month, over 30% better than the same month last year.
  • And if I had mentioned exports, Israel’s innovative approach to commerce is to allow it to tap into a US$0.25billion international distribution market for market cannabis.

On the structural side, as ever one cannot be complacent. For example, just look at my SME clientele that are swamped with needless paperwork when applying for a loan. Land prices remain high, thus ensuring that young couples are often left out of the bidding process  for homes and that office space in the big cities is hard to find. And the prices of basic food staples are driven upwards by monopolies so that the less well off stay…….less well off.

Karnit Flug has done a great job is keeping monetary policy stable, even when banks in great economic powers like Italy are struggling. That is the main role of any central bank. It is now up to the politicians in Jerusalem to rise and to meet those standards, as they determine the fiscal policy and budget for 2017. Why am I not over optimistic on this front?

Last week, I challenged you to ask if your business is really making the impact you are looking for. The subject came up again last night, as I was moderating the monthly meeting of the Jerusalem Business Networking Forum. An excellent audience, filled with entrepreneurs, several were clearly looking to know how to “get into the heads” of target communities.

For example, I met for the first time a young couple, with whom I am about to start some business coaching sessions. Their immediate concern is how to pitch to investors.

I posed to them the following connundrum. Can they create a 45 second generic statement that contains these four points?

  • We are doing XXXX.
  • We are doing by using unique tech YYYY, which helps ZZZ market
  • We arrived at this adventure, because of s0-and-so, …………..a unique and emotional story.
  • And if this tech had been available then, they would not have had to suffer / sales would have been more significant / or whatever other strong benefit.

The beauty of this approach is that your elevator pitch now contains a ‘wow factor’. Your listener is forced to internalize and consider your offering. If the audience understands nor hears anything else, they will not forget these key messages.

Let me give you a more concrete example of what I mean. A client of mine, Sonya Davidson, pointed out to me a very powerful video on the BBC website. You cannot fail to be impressed with the results, as well as the feelings of the key players.

You clearly react to the message within about 20 seconds of the 3.5 minutes clip . The issue is right there, as is the pain. The scale of the market becomes obvious. And the cavalry – the solution – can be made available to many many others, and in real time. It is worth watching.

Creating this 45 second formula take time and practice – a lot of practice. I have invariably found that the results are rewarding. And that is called ‘impact’.

As an executive business coach and mentor, I am often posed a familiar challenging question by a potential client: “Why should I use your services?”. What they do not realise is at the same time, and more crucially for me, I am asking myself: “Do I want to work with you?”.

Let me explain the conundrum through four brief case studies, and a ‘curve ball’.

I found myself brain storming over my current crop of clients. I began to understand that four of them, while in totally differing commercial sectors, had similar characteristics. (For the sake of anonymity, I shall describe all in the male person and in the Jerusalem area, although this may not be accurate).

  • Alex is an academically brilliant person, who has been practicing medicine for years. He frequently interrupts me, because he believes  – usually incorrectly – that he knows how to respond before I have finished my statement. His business has known better days, but he feels he knows what needs to be done. How can he improve his sales flow?
  • Bert is in the wellness sector. Highly experienced, but again struggling for new clients. However, he has been refusing to come up with new ideas.
  • Colin is young and dynamic. He is seeking to creating a marketing agency in a field that is incredibly competitive.
  • David is a painter. Talented and ambitious, he gives the impression that he feels clients should find him. He does not want to have to chase the money.

Different people. Contrasting backgrounds and ages. Each looking to move ahead in their own field of commerce. And each one has turned to me. Why? Because, for all their excuses and bravado – some more than others – they are stuck. they are not doing what they want to do and make money from it.

Yet despite their diversities, my role is similar in each instance. I am there to motivate them!

Motivate them to do what? First, to accept that what they have been doing to date does not work well enough. And thus second, to encourage them to change. Third, to explain that what they may see as obstacles can be overcome, again with a innovative approach.

In contrast, let me introduce the curve ball. Every now and again, I am contacted by somebody who just wants one session, because that is what they feel is needed to move ahead. This is when I ask myself if that person is really interested in changing. My experience dictates that such a move does not come about in an hour, as I wave a magic wand.

Alex has learnt to accept that his many talents and clever responses do not drive a successful business model on their own. Bert has found a new form of “wellness” for himself, which is seemingly encouraging to search for clients. Colin has preserved, developing new revenue channels. And David, well early days just yet, but the game is on and he knows it.

Change is a process. Most of us appreciate that it needs to eventuate, and many come to the difficult conclusion that we cannot do it by ourselves. With some irony, the spouse or partner is not always heard as the voice of encouragement. And thus a neutral, external and professional source is required, which can also inspire trust. That is why people use executive coaches and mentors.

Last month, I attended the award ceremony for the Mass Challenge Competition in Jerusalem. An amazing event, it highlighted ten champion commercial start ups in front of an audience of close to a thousand people.

If there was one word that was repeated throughout the evening, it was the phrase “impact”. How can the participants challenge and change their target community? The videos and speeches dutifully drove home the point, repetitively.

Since then, I have not stopped thinking about this word “impact”. It is incredibly obvious, and yet very powerful. So I applied it to several of my clients in business coaching and mentoring sessions. For example: –

  1. When approaching investors with a presentation, I asked what they that will say within 30 seconds that will force the listener to respond: “Wow, I must be a part of this”?
  2. When selling  professional services – health, accounting, computing, etc – I questioned how their smile will ensure that the person signs up immediately without further pesky questions over the price and timing?
  3.  When talking with colleagues and employees at work, I urged my customers to consider what will motivate them to go the proverbial ‘extra mile’.

I can hear some of you asking: “Well is this not just my elevator- pitch?” In a sense, yes…but not only.

Too many of us glibly find a five line throwaway and hope that does the trick. The other person is expected to be impressed. What I am suggesting here is that those precious words strike the person in such a manner that they have to consider a change of approach. It becomes a ‘no brainer’.

Let me describe a case study, which I was involved with not so long ago. My client showed me a video, which she had created. Great idea, but it was boring and failed to highlight most of the leading strengths of her team. Awkward!

So, we discussed her positives, coated them with two emotional stories for flavouring, and guess what? People are beginning to listen to her. She is looking forward to recruiting some new customers of her own. She even left my Jerusalem office with a smile.

So what is it that you do that really make a difference on your target community, and how well do you carry out that task?

For all the concerns about the future of the Israeli high-tech sector, November 2016 is turning out to be a great month for entrepreneurs in the Holy Land.

Item No’ 1: NEC, the Japanese tech giant and still known to many as Nippon, is about to open an r&d centre in Israel. This has been on the cards for a few months, and the move has also probably been enhanced by the waning influence of the Arab oil issue. Indications are that the centre will be run by Ze’ev Weiss, former army intelligence, and will concentrate on cyber security in the first stage.

Item No’ 2: Back in the 1980s, I used to read about a small kibbutz company, located near the Sea of Galilee, called Degania Medical (DM). Today, that enterprise has mushroomed into a world manufacturing leader of catheters and silicone medical products. DM is about to be sold for around US$250 million to the American giant Q Holdings. As the kibbutz owns 30% of the company, that will result in a tidy windfall for the Jordan Valley farming community.

Item No’ 3: Staying in the medical sector, it was announced yesterday that the “US company Edwards Lifesciences Corporation is acquiring the Israeli valve repair device company Valtech Cardio Ltd.” The total value of the deal is placed at about US$1 billion.

Item No’ 4: In a different light, it is wonderful to see CNN covering the growing position of Israeli high-tech in the automotive sector. Considering that Israel has almost never been a part of this global industry and recalling the history of the Arab oil boycott, it is somewhat ironic that Israeli knowhow is driving – pun intended – international road safety, self-driving cars, car safety and much more.

And what will December 2016 deliver for the start up nation of the Middle East and thus also the rest of the world?

One of the classic questions that I am often asked as a business coach is how much should people charge for their services.

I am a trained economist by profession. So I dutifully profer advice about the level of the direct costs, including raw materials. Then there are overheads, such as rent. And ignore at your peril financial charges, including loans to be repaid.

Of course, there may be local factors to consider. This is not just a case a looking at the state of the competition. For example, many of my clients are based in Jerusalem, where there are two predominant population groups that force prices downwards.

However, beyond these issues is a factor that many buyers will gleefully encourage you to ignore. And this is where you, as the seller of your product or service, stand to lose big time. Let me illustrate what I mean with a fable that my wife sent me. (I assume that it is taken from somewhere on the internet).

A ship engine failed. No one could fix it. They brought in a man with 40 years. on the job. He inspected the engine carefully, top to bottom. After looking things over, the guy reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. The engine was fixed! 7 Days later the owners received his bill for 10k. ‘What?!’ the owners said ‘You hardly did anything. Send us an itemized bill. ” The two-line reply simply stated …..A) Tapping with a hammer – $2 B) Knowing where to tap – $9,998

Don’t Ever Underestimate Experience!

From a slightly different angle, I will illustrate this point with a true story. A client of mine was recently asked to quote for a contract, a piece of work which he would really enjoy to secure for a multitude of reasons. How should he present his position and win through, I was asked? So I created the following exercise.

Step 1: Think of a high price you would like to charge.

Step 2: Think of a low price that would almost definitely secure the contract.

Step 3: Consider in specific detail the time to be spent in direct meetings, travel time and preparation time. Do not try to minimize these items, because that is rarely a realistic approach!

Step 4: Internalise how your efforts will make a significant difference to the commercial life of the potential client.

Step 5: What is the true value to you of that time?

Step 6: Be honest…………is the answer to Step 5 closer to Step 1 or to Step 2?

Again, never underestimate the value of your experience. And that is expressed in the amount of time you invest, whether it is two minutes or two months.

Binyamin Netanyahu has never been over-liked by the media, whether playing at home or on an overseas pitch. Like a football, he is simply booted around by jealous opponents, who want themselves and their friends to have more power.

Does he care? Quite honestly, he grew up as an outsider in the USA, and I suspect that is still part of his psyche today. The question is has the press got it right this time? After all, the Israeli press has already seen in recent years a former Prime Minister and former President go to prison. So is Netanyahu, or Bibi, as he is colloquially known, next in line?

Bibi has often been associated with scandals. Little has come out of them.

Then a few months ago, his wife, Sara, was found guilty of abusing an employee.  The problem is this was second time around. The press had fun describing – who knows the truth – the apparently bizarre lifestyle of the Prime Minister’s residence.

Next has come the strange stories surrounding the Netanyahu’s eldest son, Yair. At 25 years of age, it seems that he is becoming a proverbial ‘power behind the throne’ of his father. (Bibi is Israel’s longest serving Prime Minister.) Nothing necessarily wrong in his role of advisor. But look at the company Yair keeps!

One of Bibi Junior’s closest friends in James Packer, scion of the Australian Packer media empire. It appears that Packer’s Israeli lawyer has approached the Minister of Interior himself to receive a special visa for his client for his long stays in the country. OK, but that same lawyer may have also represented Bibi in the past. To me, that sounds just a bit too cozy.

Maybe I could accept all that, until the submarine story emerged at the end of last week. As background, last month, Israel agreed to purchase 3 submarines from Germany, even though the former Minister of Defense had objected to the deal.

It has since emerged in fits and drabs that Bibi’s private lawyer, David Shimron, who has also been used for diplomatic missions, played the role of agent between the Israeli representative of the German manufacturer and the various parties in Israel. Shimron has denied ever discussing the subject with Bibi. And there is no real evidence to the contrary.

However, there is plenty of room for a conflict  of interest. To be blunt, why did Shimron not declare his intentions to all in the first place, so that could be no misunderstandings? And as one former senior civil servant asked: Israel has previously purchased from this manufacturer. So why is there a need for an agent to cement the deal?

It sounds so wrong. At this stage, the German company – whose track record on corruption ain’t brilliant – is conducting its own investigation. The Israeli Ministry of Justice is not opening a file, for now.

In parallel, the local press has been made aware that yet another investigation is under way against Bibi for possible money laundering. Again, there is no clear direction for now.

Individually, these stories can be explained. Together, for me, they add up to a pattern or norm of government that reminds me of ‘banana republics’. I utterly reject this form of government and rule.

Last week’s post about how Israeli commerce impacts on the UK economy turned out to be a mild understatement. Last week, 400 Israeli and British entrepreneurs participated in a conference in London, known as “Mind The Tech”, as the logo played on the theme of the London Underground.

The “noise” and out put of the meet-up was phenomenal, and it is worth recording some of the salient points.

  • The British ambassador to Israel, David Quarrey,noted how 60 Israeli companies in the UK have reported increased activity in the past two months.
  • Liam Maxwell, the UK’s National Technology Advisor, stated openly that Israel has not only brought its know-how to the island. This change has had a direct and positive impact on creating new jobs.
  • Of the 2,200 companies quoted on the London Stock Exchange, 29 are Israeli, a relatively high proportion for such a small country.
  • As the UK is creating its own version of the ‘start up’ nation, it has never hidden its desire to copy the Israeli model.
  • The conservative forces of the UK’s banking system are gradually coming to realise that they have to turn to Israeli Fintech leaders to protect themselves from threats and to keep ahead of competitors. Ironically perhaps, it is Brexit that has put those issues in front of everybody’s closed eyes.

In many ways, Brexit is forcing the UK to think like an island again, as if the past five decades have been a blip.

This trend draws a parallel to Israel, which has comparatively little trade with its own neighbours. High-tech has more than saved the economy of the Holy Land. It has allowed for the creation of commerce, simply by going around many of the obvious borders, tariffs and other obstacles….significantly downsizing that island syndrome. So far in 2016, a year of yet more international instability, investment in Israeli high-tech is 35% higher than last year.

And that is why the UK is so determined to work with Israel more than ever, for thae mutual benefit of all peoples from both nations.

The mandarins at Israel’s Ministry of Finance have good reason to be pleased.

First, it was revealed that Israel’s debt to gdp ratio is now down to 63.9%, as opposed to 95% back in 2003. This shows the country’s ability to repay debts. Below 60% is considered excellent, especially in the post- credit crisis era. A few days later, Fitch raised Israel’s credit rating to A+. Overall, the outlook is stable and healthy, as the Israeli economy still continues to grow steadily.

So, that’s all OK, isn’t it?

Now look again. For a considerable time, I have been warning of a split economy in the Holy Land. Global expert Prof. François Bourguignon observed that Israel is a country where the rich are benefitting from an inadequate tax system and from high prices for land. The gap between the haves and have nots is only growing.

There are plenty of indications of this inequality. The number of recorded bankruptcies in 2015 grew to 15,450, 50% higher than in 2012. The price of housing continues to rise, about 8% in the past year. Non resident Israelis have an easy time in avoiding taxes. And so the list goes on.

The point is very simple. The Israeli economy appears to be doing all right, according to base line stats. However, there is increasing evidence that the benefits of this improvement are reaching a limited number of people. And what is worse, the government does not seem to care.

Can I prove my point? Last week it was revealed that Israel had bought three submarines from Germany, despite the objections of the military. In today’s Hebrew media, we learn that the German manufacturer is represented in Israel by Prime Minister Netanyahu’s private lawyer, Dan Shimron.

Shimron’s office denies that he ever discussed the matter with the Prime Minister. Fair enough, but would you not have expected a top lawyer like Shimron to have declared the issue openly in order to prevent any possible thought of a conflict of interest?

Maybe, unless the rules for the elite are different than for others in Israel.

For a country of a little over 8 million people, Israel has more than its fair section of minority interest groups.

It is not just that about 25% of the populace is not Jewish. There are Muslim Arabs, as well as Christian Arabs. Bedouins and Druze do not see themselves as Arabs. Moving along, you have the ultra orthodox people, who can then be subdivided, and so the listings go on. And all of this is wrapped around the geopolitical instability of the region.

And through all of this, Israeli society has some amazing positive things to teach others. Last week, I mentioned the amazing work at Beit Issie Shapiro – teaching autistic kids of all backgrounds to communicate via an Ipad. this work has received the blessing of the UN. Previously, I had referred to the ever increasing role of women in Israeli society, despite many internal religious pressures.

What is pleasing to see is that these patterns of change are continuing. In the past two weeks, different news agencies have informed us that:

A) There is a special business accelerator for start ups led by Israeli women. To date, participants in the programme have raised US$20 million.

B) Lucy Aharish is an amazingly talented TV presenter. She has been prominent in celebrations of Israel’s Independence Day. And she is very proud of her Arab heritage, which she uses to break down barriers presented by all sides. Her story and triumphs should be an inspiration for all.

C) And then there is the university scene. The latest set of stats refer to 2014, when 3,600 additional students enrolled. Most of these come from the ultra orthodox sector, which are not normally associated with tertiary education. In total, females make up nearly 59% of the numbers, again somewhat surprising as there are so many conservative forces at work.

What does this all add up to? No, Israeli is not a perfect society, although I have yet to find such a thing. On the other hand, the efforts to create a pluralistic society in the Holy Land, where opportunity is available for all, are truly producing results that need to be observed if not copied by others.

For over a decade now, trade between Britain and Israel has been booming. And if Brexit is to bring changes, that growth is only expected to be accelerated.

The size of Britain’s annual trade with Israel is now valued at well over US$6 billion. This is staggering. Consider that Israel is not the USA nor part of the EU nor part of the Commonwealth. There are relatively few arms’ sales between the two countries.

However, bilateral trade is not all the Israel contributes to the British economy. A few days ago, the Secretary of State for Wales declared that the Israeli company “Lordan UK Ltd’s £1million investment into Wales is an example of the new investment opportunities that have arisen since the Israeli business delegation visit to Wales in 2015, which has generated further job and business growth.”

Following on from that, Mark Garnier, who is the Secretary of State for International Trade, responded to a question from a fellow MP on the benefits of trade with Israel.

UK Trade and Investment, now known as the Department for International Trade, was actively involved in assisting 29 Israeli companies to set up or expand their operations in the UK and create 560 new UK jobs in 2015. The UK is the number one destination for Israeli FDI in Europe and there are now more than 300 Israeli companies established in the UK. Israel is an important trading partner for the UK and we are committed to further strengthening our trade and investment relationship.

And that is not all. “29 Israeli organizations are listed on London Stock Exchange across the Main Market and AIM, with a combined market capitalisation of $10.2 billion.” “Mind the Tech” is a massive UK-Israel technology conference in London, taking place next week. In my own work, I know of several joint Israeli lawyers, accountants, and other services with offices in both countries.

Bottom line, and maybe there is a message here for the Trumpish politicians in the world. Do not close your country off to trade not dally with boycotts, because trade has benefits for all. Britain has proven this conclusively, as it continues to welcome Israeli goods, know-how, and services.

Having a child with autism must be very challenging, if not downright stressful. Over the past few years, Beit Issie Shapiro (BIS) has been channeling the innovative wonders of Israel into finding solutions for autistic kids and others. This triumph deserves a bigger audience.

I happened to attend a talk given in Swiss Cottage London by Jean Judes, the Executive Director, of BIS. She highlighted the most fascinating of case studies in their efforts to bring children with extreme special needs back into Israeli society. In brief, the stories focused on reaching out to children, many of whom are still at a pre school age, but are unable to communicate with the outside world.

The key part of these efforts is the use of an Ipad. It appears that there is something in screen technology that allows the infant to ‘discover themselves’. In return, the staff at BIS have discovered that some of these kids are incredibly intelligent and fun loving. In one instance, it was learnt that the toddler understood English fully, and not just Hebrew. (The parents used to speak to each other in English when they did not want the child to understand)!

Israel is known as the ‘start up nation’. Not far from BIS are the large Israeli facilities of both Google and Apple. Both have assigned teams to work with BIS staff to create new services for such children.

Judes deliberately stressed in her talk that the children are cared for in their native language, Hebrew. The one exception are those in the Arab sector – Muslim, Christian or otherwise. This is particularly true in the Kalansua Family Advancement Center for early intervention.

BIS now has partnerships with similar centres as wells as governments and academic institutions in tens of countries, including China. Their work has been presented at UNICEF . This is as much an Israeli export as the high-tech services or its agricultural produce.

This knowledge – these changes – are just another aspect of Israeli innovation. They are enabling tens of thousands of children internationally to take their place in society.

 

A recent blog from “entrepreneur.com” considered 10 bad habits to eliminate from your daily routine. No surprise that the first three referred to cutting back our use of mobile tech or similar.

True, but I felt that the item was lacking. After all, what prompts us – well, most of us – to spend so much time on Facebook or just checking, yet again, if somebody has sent us that one email which hopefully will change our lives?

I found my way to the website of super Australian life coach, Sharon Pearson. She stresses a theme that is very important to me and what I often explain to my clients as a business mentor in Israel. Do not let others dictate how you should think nor let them dictate what is important for you.

Pearson phrases it slightly differently:

Take responsibility for changing your thoughts. I found this very difficult in the beginning, because I was so used to the negative thoughts. i was kinda hooked on them, because I layed the victim! When I chose to take responsibility for them, no exceptions, my thoughts started to change.

Last week, I wrote that: “Our negativity will ensure that bad things will happen.” We have more ability than we realise to take control of what we want to do.

This very theme came up with a client of mine in Jerusalem a few days ago, a self employed exec who has created a business from nothing. Yes, they are going through some business problems, which is stressing. Their natural default mode is almost predictably one of despair. In contrast, what I am trying to show them is that these same issues present an opportunity to change things around and then to move ahead.

The alternative for people like that? Yup, we can bury our sorrows in prolonged and distracting conversations on Facebook. At least that would allow somebody to write a blog about the habit.

The Western Wall Plaza in the heart of the old city of Jerusalem is arguably the holiest site in the world. In a proximity important to three great religions, people have been allowed to practice the beliefs freely since it fell into Israeli control in June 1967.

This week, UNESCO will vote on a resolution that effectively abrogates Jewish and Christian history. In an effort to denigrate Israel, the organisation will call for sanctions against the Jewish state. And it is this clear divide between the reality of pluralism as opposed to the world of vicious political or diplomatic manipulations that brought me to question:

‘What else does the world not want to hear about Israel?’.

With incredible timing, this morning I came across three seemingly unrelated pieces of news. Individually, they may be interesting. Together, they reveal a society in Israel that is bubbling, at least partially integrated, and continually struggling to improve despite of all the surrounding external threats. For example: –

Let me deliberately start with some news from the military. The IDF (Israel Defence Forces) has just completed its latest and largest programme to induct people with special needs. In the past few days, 80 young recruits finished a basic training course and are starting to find their way to their designated units.

Then there is the contentious issue as to how Israel treats Palestinians. Now I am not going to boast that all is rosy. However, I can say that this week, I will be starting with a new client who may claim that he is a Palestinian. And this video clip presents a whole different take to what is reported in places like the New York Times and similar. War is created through distrust, while on the ground Israel is doing much to break down barriers with Palestinians.

Number three on my list is actually a set of three women: Miriam Banki, Adenko Sabhat Haimovich and Esther Tapeta Gradi. Not exactly household names. All three ladies were  appointed as judges a couple of weeks ago, not something you would see in most other Middle Eastern countries.

And now look again. Banki’s teenage daughter was murdered last year, when she marched in a gay a parade. There was mass condemnation at the outrage, and this “promotion” must also be seen in that context. In contrast, Haimovich and Gardi were born in Ethiopia. And for all the struggles of the community which has emigrated from there, they represent the progress towards integration that has been made over the decades, and the more that still needs to be done.

Yes, Israeli society is not perfect. However what these stories and anecdotes illustrate is that UNESCO’s resolution today is based on one big fabrication. Is it not ironical, sad and shaming that the leading global agency for cultural integration is promoting a modern form of that classic hatred, known as anti-Semitism?

When hopes and dreams are dashed, they are often replaced by self-doubt, pessimism, accusations, and anger.

Thus wrote Dr. Robert Brooks in yet another excellent monthly blog. He considers the balance between being optimistic whilst having to consider the possibility of failure.

Brooks has long concentrated on the theme of resilience and how it can be developed in most of us from an early age. The key factor is to have at least one individual around us, who understands and actively supports our feelings.

So what happens if you miss out and enter adulthood without that security blanket? Many of my clients are entrepreneurs, and not just in the field of high-tech. And while I am no psychologist – I am a business mentor and coach, operating primarily in the Jerusalem area – it does not take me too long to assess if a new customer fits the “Brooks ticket”.

And I readily accept that even those people who are not business owners and maintain responsible positions of employment, they too have their setbacks. Can you prepare yourself for those disappointments?

The answer is obviously yes, every one in their own field of activity. However, Brooks offers up a more interesting question, one which is far more far pertinent to my line of work. Why do so many of us spend so much time working out what we will do if something might go wrong – thinking up layer upon layer upon layer of awkward scenarios?

It is almost as if we are encouraging the oedipus effect. Our negativity will ensure that bad things will happen. Alternatively, as Brooks states, we can be more aware of the possibility of ‘success’, a word that so many of my clients seem afraid to contemplate. “What we do have more control over than we realise is our attitude towards and response to those events”, which we cannot influence.

In other words, if something does go wrong, the default thinking should be that you probably handle it, even if that will not be a simple task.

But let me go further. I wish I had a dollar for the number of times people say to me: “What if such and such a bad thing happens”? It may. It should not be ignored. Without being naïve or dismissive, I often throw back a curve-ball and ask: “But what if it does not and what if you achieve your goal”.

I never cease to wonder how people seem so shocked and aghast about embracing the concept that they may do well.

Two new set of stats were released last week about the Israeli economy

  1. A report from the OECD noted that while there are a lot of “good looking” elements to the economy and many feel satisfied,  poverty is on the up.
  2. Prices are barely rising.

Well, surely this is all very tolerable? After all, no economy gets its finances right all the time. Look again!

It is true that prices have been kept down recently. However, due to increase of world food prices and raw materials, sooner rather than later, these changes are going to end up being felt in the bank accounts of the average Israeli. Now factor in the global truth that the poor spend more on food (and health services) than the richer sectors of society, and you will soon find that the OECD report will have even more painful meaning.

One comparative fact just made my blood boil. Over the past decade, the consumer price index in Israel has risen by 19%. Impressive. However, the index for fruit and vegetables – basic staples of a person’s diet – has leapt up 44%, more than double all other standard items together.

As the analysts observed, Israel has the highest relative rate of poverty in the OECD. And that is why I keep writing and warning about the absurdities and tragedy of Israel’s dual economy.

For years, food prices in Israel have been kept high by vested interests, often close to the corridors of power. For example, there have been suggestions and even attempts to open the market up to imports. For example, why Israelis are only allowed to eat strawberries 3 months a year is beyond me. A combination of religious groups and the agricultural lobby have managed to put this off for yet another year.

And then there is the farce of the creation of a national vegetable distribution centre. A government unit was set up back in 2012 to establish what is supposed to save consumers an estimated 2.5 billion shekels annually – say US$0.6 billion. After numerous surveys and a dozen different reports, nothing – I repeat, nothing – has been decided nor achieved.

And in the meantime, I guess the OECD can start to prepare its next disappointing report on poverty in Israel, because the people at the top, even if they do care, are incapable of acting.

Last week, I wrote about the Israeli economy that it is:

…. continuing to press ahead. Unfortunately, in parallel, there is growing evidence that the rich are getting richer. Those less well off may still be doing better, but are also being left further behind.

The post drew a lot of private comments and a few on Facebook. And it is a theme that I feel very strongly about. The government is unable in part and seemingly unwilling to act. For example, yet again, we read in today’s newspapers how the price of housing has risen a further 8% since the beginning of the year. (The government controls the price of land and  it benefits from large levels of taxation from property transactions).

Sever Plocker is one of Israel’s leading financial journalists. Writing in his regular Friday column in Hebrew, he discussed the annual IMF conference, which took place earlier this month. Yes, he readily noted, Israeli banks were praised for their stability and caution, especially in light of the Deutsche Bank crisis threatening Europe . But……

Plocker went on to stress the thoughts of the IMF’s managing director, Christine Lagarde:

(Globalisation) needs to be slightly different. It cannot be that push for trade as we have seen it historically. The inclusiveness, the determination to make it work for all, and to pay attention to those that are at risk of being left out, whether it is as a result of technology, digital economy, or international trade by modification of supply chains, that factor has to be taken into account.

So, what does it mean for the IMF? It means that if we want to include, if we want to address the inequality issues, we need to have a strong international safety net so that countries that feel at risk, because of policies determined elsewhere, have the tools, have the financing instrument to actually respond.

As Plocker concluded, this is as close as you will find to the language of humility at such an event. In effect it is a public declaration that the strong have failed to look after the weak. And if something does not change soon, we will all suffer.

I wonder if Israel’s politicians and economic mandarins in their villas are tuned in to this message .

One of those recurring themes in business coaching is sales: “I want more clients”, my own customers scream at me. And it is amazing how time and again, the solution lies in their own hands.

Here are two of my standard tips to jolt people forward, and they succeed time after time.

The first was written up very succinctly now so long ago as a case study in “Inc.com”. They focused on a young CEO, who was faced by an slightly docile sales team. So, she challenged them all to contact the five people they most wanted to meet in order to conclude their next deal. The results were phenomenal and very dynamic.

When you think about it, the concept is very simple. However, many of us are put off by it immediately with a subconscious thought of “why would these ‘great’ want to talk to somebody like me”. Maybe? Possibly? But if you do not try, you will never know. After all, what have you got to lose except five minutes of your time?

Just recently, I put this trial in front of two sophisticated CEOs. Within a week, one had completed three first meet-ups with key potential clients. The other had greeted me very dubiously, but by the end of our session had enthusiastically listed the names to ten “must-to-contact” rainmakers.

A second tactic is again somewhat obvious but frequently ignored. Go and seek some testimonials, and then publish them. The point is that many of us are persuaded by seeing a review, preferably a visual comment, by somebody who has used your product or service and not been disappointed.

Let me rephrase this. When we look for a plumber or an electrician, we often ask a friend or a neighbour for a recommendation. Similarly, request others to promote you. It is bizarre how so many of us are reticent to do so.

To take this thought one step further, I was watching Sky News last week, when a serial entrepreneur gave a plug to a new website called Social Superstore. This allows you to recommend to others products that you have bought. If they also purchase the item, then you receive a financial reward.

And as a business coach, the best piece of news I can give my clients is that these ideas can be repeated almost continuously. Even better, while much of my client reach is in the Jerusalem region in Israel, these marketing principles can be applied globally.

As I remarked above, quite often the path to higher sales is right in front of us. What we may lack is the clarity to see the opportunity and then the confidence to seize it.

Officially, Israel’s economy is growing at its fastest rate for nearly two years, about 4% per annum. Impressive by most global standards for these days. The question is who is really benefitting for this upsurge?

“The Calcalist” (Economist in English) newspaper has just released a fascinating analysis on changes in the Israeli economy. The starting point is that in the ten years to 2014, GDP per capita has risen 34% (despite the credit crisis). However, real wages have only grown by 5%. So where has the money gone to?

This creeping sense of inequality – a country of two economies – has been seeping into my writings over the past year. And the Calcalist immediately notes the Gini index for measuring differences in financial standings. Whereas Iceland and Norway boast coefficients of around 0.25 and the OECD average is 0.317, Israel stands just better off than the USA with 0.365. Not good.

To give that stat some perspective, it appears that Israelis work on average about 5% more hours per year than counterparts in the OECD. However, it still takes an average Israel around 12 full years of salary payments to buy a flat. Not only is that a number that has grown by 10% in 5 years, it is about the highest in the OECD.

The report refers to a multiple of distortions:

  • As with many countries, there is not enough public money for pensions.
  • Despite the multiple improvements in the past decade, the Arab (eg, education facilities) and Haredi (eg, social services) population sectors lack resources.
  • The food industry, including local agriculture, is heavily protected, to the detriment of the consumer and prices paid in the shops.

Yes, there are positives.

  • Israel’s debt to GDP ration is less than 65% and still dropping
  • As the central government budget grows, the proportion of spending on the military is projected to keep falling – to around 16.8% by 2018.
  • For the past three years, revenue from taxes have consistently beaten targets by about 4%.

So what next? The report comes at a time of year in the Jewish calendar when people are encouraged to reflect. Tomorrow is Yom Kippur, the Day of Atonement, a fast day.

The economy is continuing to press ahead. Unfortunately, in parallel, there is growing evidence that the rich are getting richer. Those less well off may still be doing better, but are also being left further behind. The question is what will be the trigger for the suffers  – typically supporters of the government – to scream out at the election polls “no more”?

I have just read an amazingly important blog entitled “7 brutal life lessons everyone has to learn multiple times” .I specifically liked the emphasis on the line that “you cannot stay the same forever, and trying to do so will hurt you”.

With respect to the author, Nicolas Cole, I feel that he could have added one further point: Dealing, and then utilising, anger.

We all get angry, especially at work. As a business coach, I am frequently asked by clients how they should handle a supplier who does not perform, or a client who does not pay, or a colleague just…does not. And here’s the funny thing. In over 90% of the cases:

a) My customer finds it difficult to pin point just what ‘hurts’ them

b) The reason is often because the origin of the problem lies……with their own initial actions. And how most of us hate to admit that we are at fault!

Here is a personal anecdote that happened to me over the past few days. I was excluded from a project that I believed that I should have been part of and had a lot to contribute to. I appealed to various parties, as my voice registered increasing displeasure. It took me 24 hours to understand why I was annoyed, if not angry, and at whom.

However, in the process, I found myself going back several months to how the story had unraveled. Sure enough, I had to admit that could have and should have acted differently, and that is not just with the benefit of hindsight. Ouch. Painful for me!

(For the record, my initial position has not changed, but the parties are reconciled and still friends).

And now for the second point. There is second level to handling our anger. This is where you need to invoke some cognitive thinking.

For example, in sport, athletes curse injuries. Yet, the transmission period offers a time for reflection. First, they can use the time for other activities. They can also consider if they have been training properly, considering what has happened. The net result, after all the initial cursing, can be a stronger, better prepared and happier person.

In my case, I have began to use the rejection to consider where else I can be of use. I have already begun to direct my abilities in other areas, where the same project has not been so successful. I am still annoyed at what was, but I have achieved has also been recognized.

Bottom line? Much our anger resides in faults or mistakes that we are ultimately responsible for. It is not always so easy to accept that. Once you do so and then find the cognitive path to turn things to your advantage, then everyone becomes a winner.

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