Pages
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.

Israeli high-tech exports, and the defense industry

29 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Everybody knows that Israeli exports are driven by the high-tech sector. For years, Jaffa oranges have not been the commercial flavour of the month, having been replaced by the tasty riches of Intel and other multinationals based in Israel.

Within the tech hype, there is one sector that tries to keep under the radar – pun intended – and that is the defense industry. The issue came to light this week in a discussion over the 2017 budget. The Treasury is trying to up its level of control on export licenses for armaments.

In turn, the “Calcalist” newspaper ran a review of defense companies, and the numbers are fascinating.

In 2015, around US$5.7 billion of contracts were signed. This is about 10% off the average for the past decade, although a little improved on 2014. The peak was US$7.4 billion in both 2009 and 2010.

And the destination of these sales? This really surprised me. 53% are Asian and Australasian based clients. The rest is spread fairly evenly around Europe, USA and other regions. In total, these numbers represent about 10% of Israel’s annual exports.

What is the real cherry on the cake? A few days ago, the extent of Israel’s participation in the Rio Olympics was made public. Aside from a delegation of nearly 50 athletes, dozens of companies from the Holy Land have won contracts to protect the event – from the air, sea, cyber space and more.

It is estimated that about 10,000 Brazilian security service personnel have been trained by Israelis over the past couple of years. The total financial commitment is about US$2.5 billion, according to an item on Israel Channel 2 TV station.

What next? I am not an expert in this sector. Israel’s political enemies would rather boycott these capabilities and risk the consequences. However, can you imagine how unsafe we all would be without this contribution from factories in Haifa or start ups in Herzylia? Frightening!

Biotech industry in Israel – real progress

22 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

The biotech industry in Israel seems to be finding its feet.

A week ago, “The Calcalist” – The Economist in English – daily financial paper reported on a new round of investments in the sector.

  • Bonus Biogroup completed an 18 million shekel (approx US$4.7m) sale of shares, ahead of its offer in the USA.
  • VBL, already present on NASDAQ, took in US$24m in order to boost its search for creating drugs against cancer.
  • Micromedic’s shares shot up 140% ahead of an announcement relating the success of its diagnostic kit for cancer.
  • Kitov raised US$12m on results that show its main product is highly effective in combatting arthritis.

These are not isolated pieces of news. At the end of June 2016, the Israel Biotech Fund (IBF) made its first move, selecting cancer drug developer “Vidac” as its first partner. IBF has a US$100m treasure chest to spend, supported by American giant Biogen, Medison, and others.

On a micro level, BioJerusalem and JBNF-Bio have had major success in recent years partnering local start ups with multinationals. The latter recently held a meet up with nearly 100 participants on how to create a start up. The bug of entrepreneurship is still mutating with vigour.

At a time when much of Israel’s economy is facing a slowdown, it is refreshing to observe how biotech in the Holy Land is bucking the trend.

Manipulators? You only need one weapon to overcome them

20 July 2016
1 Comment
Categories: Afternoon Tea in Jerusalem, Business

As a business coach and mentor, I am frequently asked how to cope with people who are clearly not telling the whole story. Something sounds wrong.

“Ten techniques used by manipulators” is the title of a blog, which sets out just how nasty some bosses and colleagues are in the workplace.

Interestingly enough, such habits extend to suppliers, clients and as far as our social arena.

The blog is a very useful read. It sets out the very different approaches that the ‘nasties’ use. There is anything from aggressive to using third parties to the gentle manner, and much more. Each one comes with a self-help message.

And that is where the problem comes in. There is just too much to be aware of.

Once I had stepped-back, I looked at the pointers again. They added up to one key message.

Value yourself. Know your key strengths. Understand what are your core values and why you put them there. 

At the end of the day a manipulator wants to encourage you to pull down your own fundamentals.

A manipulator tries to maneuver their way around these rocks. Yes, they are rocks, very impressive boulders. Your own self worth.

So, make sure that you do not help them clear the path through towards……the wrong turning in your life. They make it sound so easy to say yes, when actually “no” is a shorter and simply word to utter.

Palestinian economy: The fifth “giveaway”

17 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Last week’s blog on “4 takeaways of the Palestinian economy” highlighted how so much money seeps into Gaza and the West Bank. Yet so little is accountable and so much seems to escape the notice of Western donors.

As one person commented that rather than ‘takeaways’, this is a policy of “giveaways”! And thus on that note, I would like to apply one more comment to this huge generosity from Western taxpayers.

 Alex Fishman wrote a detailed commentary this weekend on the continuing tension between Gaza and Israel. While the government of Jerusalem is investing billions in new tech to prevent tunnels reaching its territory, Hamas has upped the level of digging and shoveling beyond anything previously known. 50 or so terrorists – captured, or those that gave themselves up – have spilt the beans on what is being dug, where, by whom and how.

But let me concentrate on the financials and stats that Fishman alluded to:

  • To date, in 2016, it is estimated that Hamas has channeled up to 300 million nis towards the tunnels. (About US80 m)
  • Approximately 20% of the Hamas budget is allocated to military needs.
  • Despite Egyptian efforts, Hamas still has around 10 or so tunnels pointing in the direction of Cairo. (It is worth recalling, Egypt is furious that ISIS operators in Sinai receive regular support from Hamas, including escape routes and medical treatment.)
  • The tunnel creation is a 24/7 project that has already cost at least 20 lives this year alone.
  • Roughly 5,000 Hamas militia are being trained for ‘tunnel warfare’, more than double the total available in 2014.

Now Fishman did not offer any directs sources to substantiate these facts. However, I think it reasonable to state that Hamas are up to no good. These tunnels are designed to cause injury and destruction.

So, where does the concrete come from? Lorries enter from Israel, ostensibly with raw materials for new homes. Oh come off it!!! No wonder, UNWRA complains that home building is behind schedule.

And where does the financing come from? Strange how that question never seems to be asked in European Parliaments………..even if these same governments give hundreds of millions directly and indirectly every year to Gaza and to the West Bank?

The unreported Palestinian economy: 4 takeaways

15 July 2016
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

The default reporting mechanism for the Palestinian economy is that it is bust and that is mainly due to Israeli oppression.

The facts that Ramallah and Gaza and surrounds are today replete with shopping centres or that the economy leapt forward when under full Israeli control up to 1999 seem to be irrelevant. So I briefly want to take a quick survey of anecdotal evidence as to what is happening.

Ostensibly, the answer is nothing. The Ma’an News Agency in Ramallah has not updated its economic section in English for over two months. Moving beyond this bizarre situation, I found out that:

1) Certainly, the EU continues to pour in hundreds of millions of Euros on behalf of the Palestinians. It justifies this on the grounds that the money stops a complete collapse of the two-state economy. The strange thing is that the donors from the Arab states are still around US$1 billion short in meeting their commitments, and show little real to pick up the slack.

This does beg the question why the oil-rich nations revoke on their financial pledges to the leadership of Abbas and Hamas? What do they know?

2) That the Palestinian economy is in dire straights is not an argument. It is a fact. The perennial question is where does all the aid go to?

It is significant that even the British newspaper, the Guardian, considered one of the most hostile to Israel for two decades now accepts that:

About 6 percent of the Palestinian budget is diverted to prisoner salaries. All this money comes from so-called ‘donor countries’ such as the United States, Great Britain, Norway, and Denmark.

Thus, by one calculation: “The Palestinian Authority is paying them (prisoners) up to £1,957 a month – more than the average salary of a UK worker.” Absolutely stunning!

Why the complete lack of accountability? Why does UNWRA, what I describe as the largest charity in the world, have no external auditor? Why is so much of taxpayers’ money poured into bottomless pot, yet relatively little is spent elsewhere?

3) The blog of Haifa Diary picked up on a small yet significant news item. The Israeli security services arrested a small-time Palestinian smuggler. No big deal, except that he was carrying thousands of dollars intended to fund Hamas terrorism in the West Bank.

So what is it? The average Palestinian does not need the cash, or their livelihood is just irrelevant for their leaders in this incessant game of hatred?

4) And if we are talking of illegal trade, did you hear about the illegal spare automotive parts, which were nearly smuggled into Gaza? No? Silence in your media?

Well, I bet you did not hear about all of these stories? And maybe it is time to ask why?

A classic case study in ‘how not to make a pitch’

14 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Yesterday, I was very excited to attend a seminar in Tel Aviv on the adtech industry in Israel. Here was an excellent opportunity to learn more about native advertising and the contribution of the Holy Land start ups to the global community in the field of video.

From the pre networking, it was obvious that the place was full of people and company reps with great talents, directing live content in ways thought impossible just a few years ago. And yet, much of the talk and the discussion forced me to slip into my role of business coach and mentor. Here’s why

  1. After a brief intro from the hosts, the first speaker was forced to halt in mid track after 45 seconds. The microphone failed. The fault was quickly fixed. However, once back on his feet, our maestro promptly said that he would not repeat himself, “because it was not that important.”      You mean that I and hundreds others are about to sit here and waste our time on you listening to you? Amazing kick off!
  2. There then followed a panel discussion. OK. But nobody introduced the participants and what gave them the right to be on stage in the first place. So, initially, their comments came over very disjointed.
  3. Few of the speakers throughout the evening appeared to appreciate or even consider the make up of the audience. You could tell, just by looking around and counting those in the audience playing with their mobiles during the presentations.
  4. And then there were the pitchesrom the start ups, each given just a few minutes to state why their technology is so ‘wow’. I watched as at least two presenters spent half their time explaining what they are not. What a waste of an opportunity.

And in contrast? Over the past few days, clients of mine have made pitches for funding.

  • The founder of a start up originally complained to me that he could not explain what he does in less than two minutes. That came down to 15 seconds. They have since received the first level of approval.
  • In parallel, a Jerusalem company has created a one page executive summary that sets out concisely their progress over the years and the proposed business model. No need at this stage for a 20 page business plan. They are hopeful to receive an injection of cash to fund future development.

To be honest, one pitch did catch my eye. Within 30 seconds I had understood what is so special about VocalReferences, as laid out by cofounder David Wenner.

I ended up leaving the conference early. Before doing so, I looked around the audience. I wondered how many investors and business accelerators were present in the room and how under whelmed they had been left. A golden opportunity for many so sadly underused.

Look whose money is invested in the Palestinian economy – 3 takeaways

8 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

For decades, we have heard that the Palestinians do not have any money. We know that their brothers in the Arab League do not readily convert financial promises into actual deliveries. Despite that, Palestinians mange to build extravagant tunnels and shopping centres.

So who is paying for the development of the Hamas regime in Gaza or the perpetuation of the Abbas empire in Ramallah? Consider these three anecdotes that shows what happens on the quiet to the earnings of Western taxpayers.

First, the generosity of the UK knows few limits. It was revealed in the Parliament of Westminster on July 4th by the minister for the DFID, the Department for International Development that: –

DFID provided almost £157 million to the Occupied Palestinian Territories (OPTs) between 2014/15 and 2015/16 to help build Palestinian institutions, deliver basic services and promote economic development. DFID has either met or exceeded the majority of its targets for programmes in the OPTs.

DFID supported over 390 companies to improve their operations and increase competitiveness. In each of the two years, through UNRWA support, over 26,000 families received social transfers (either food or cash) and almost 45,000 children were provided basic education. Furthermore, over 1.6 million medical consultations were provided over the two years.

In addition to this support, the UK provided more than £17m in immediate humanitarian assistance for those affected by the Gaza conflict in the summer of 2014. Non-food Item (NFI) packages were provided for 23,400 families covering their needs for three months.

Very noble. And this does not mention contributions to the EU for Palestinian-specific projects.

So, turning to Brussels, there is no doubt that the EU can be incredibly supportive. It recently contributed 10 million Euros towards a much needed desalination plant in Gaza. Officially, the EU contributes around 170 million Euros annually to the Palestinians. This does not include the hundreds of millions, which find their way to UNRWA. Could this be one of the reasons that the British voted to opt out of Europe?

And finally, some may say ironically, there is the support and training provided by Israel. Yes, the government in Jerusalem is not immune to what happens in the West Bank and in Gaza. One prominent expression of this can be found in the agricultural sector, where two sides met up regularly.  In fact is staggering just how much Israel gives to the Palestinians via business centres, education, medical assistance and much more.  This must be worth tens of millions of dollars in any given year.

This week, a flotilla of aid from Turkey arrived in Israel. The goods are to be transferred under supervision to Gaza. This act of charity may save face for the Turkish regime, but it is not what the Palestinians necessarily need not will it directly help the overall cause of peace.

It is time to change the narrative. The Palestinians do have money – not a lot, but it is right there. They do need more investment, not in its leadership but directly in the people. And as the UK Parliament is beginning to understand, the monitoring of these donations has to become transparent and accountable, which simply is not what happens today.

Israel’s economy: Connecting the dots in July 2016

6 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Just look at these headlines from today’s financial news in Israel.

  1. The number of new cars being delivered in Israel just keeps on rising.
  2. The price of housing is expected to to climb even further for the predictable future.
  3. The trend for 2016 reveals a drop in the number of high-tech exists.
  4. Following on from the fall off in growth in 2015, the Bank of Israel has pegged back its updated forecast for 2016

Can you start to connect the dots?

If not, let me give you another clue. Whilst consuming spending is holding up in specific sectors and while key parts of the economy are not performing, I have yet to read about one significant move by the Israeli government to bolster the country’s economy.

Let me just check that. Oops, I made a mistake. The government has recently approved six extra days leave for the whole economy! But this sort of proves my point – all play and no work often leads to disaster, no?

The next miracle of the car industry comes from Jerusalem?

5 July 2016
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Jerusalem is synonymous with biblical miracles. When it comes to the changing brilliance of the car industry, our thoughts turn to the Far East or Germany. In fact, it seems that a former start up from Jerusalem by the name of Mobileye is about to change all that.

Let’s abck track for a moment. For almost two decades, Mobileye has been creating algorithms to enhance car safety and prevent accidents. It is located on three continents and boasts partnerships with many leading manufacturers. By the way, if you were to walk into its offices in the Holy City, you will find a vibrant atmosphere albeit in a very modest building.

About a week ago, the company’s share price jumped about 10%, ahead of news of an expected announcement for further collaboration with BMW and Intel. Mobileye’s tech will be at the forefront of a new driverless car. For the record, this capital influx was not the first time recently that Israel had been in the news for the car industry. VW has recently thrown US$300 at Gett.

In fact, the scope of the Mobileye project is significantly larger than initially speculated. In an interview with the Hebrew press, Elad Sefati VP, has revealed that Mobileye is talking to 13 different manufacturers. The Jerusalem company will supply the navigational technology. In fact, there are five customers which are closing in on first stage production.

The hope is that the BMW automatic or drone car with the Jerusalem miracle pack will be ready for launch in 2021, and this will take place in Israel. How times have moved on.

A ‘Spiritual Response’ from British Isles to Israel’s economy

1 July 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Thursday 30th June 2016 represented a day of mixed feelings for Israel

Early in the day, a Palestinian entered the home of an Israeli family and slew a 13 year old girl in her sleep. A few hours later, there was another stabbing incident on the costal city of Netanya.

While that was going on, the British Labour Party released its report on anti-Semitism in its ranks. Led by Sami Chakrabarti, it concluded that “too much clear evidence of minority hateful or ignorant attitudes” amongst members. Fair enough. However, party leader, Jeremy Corbyn, when commenting about the findings, made his central point the equivalence of Israel with ISIS!

While wondering if Corbyn realises (or cares) that Jews pray in the direction of Zion in Jerusalem, it did not take long for the leaders of the   Jewish community to dismiss outright such a statement. Yet if Corbyn’s language was not vile enough, his apparent supporters were caught on camera uttering further anti-Semitic remarks…… and never a mention of a few words for the wretched family, whose daughter had just been stabbed to death ‘in the name of peace’.

In total contrast, a few hours later, I was on my way to take part in the 3rd Tel Aviv Whisky Live event. Thousands attended, of every creed and colour. And arguably the most popular stands were those with reps – whisky ambassadors – from the distilleries from the British Isles.

For example, Tomintoul had an excellent display, and I admit to being pleased with my tasting their 12 year old malt. What I found particularly interesting was their understanding of the kosher laws regarding this very special drink, an issue that most seem very obscure to the Speyside team. Similarly, I was delighted to learn about Teelings single malt, whose base is in the heart of Dublin, Eire. And to be honest, I left with a very healthy looking bottle of heavily peated Jura.

The point is that these companies and their competitors and fully engaged now in the Israeli market. They look beyond the hypocrisies and misjudgments of people like Corbyn and fellow politically correct animals – who would advocate people to boycott such an event.

Spiritually, and in more ways than one, the distilleries are simply working with the Jewish nation, treating the local populace just like any other country. Which raises the question as to what sinister issue is preventing Monsieur Corbyn from doing the same?

Surveying Israeli high-tech, June 2016: 4 weddings and a funeral

30 June 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

I wrote last week that “Israel is no longer number the only country in the game of start up nations”. After another eventful seven days for the Israeli economy, I can only confirm that statement. For all the good news, for all the new partnerships being formed with overseas investors, there is something very worrying just under the surface.

Let’s start with four pieces of positive soundbites.

A) Last week, I attended the launch ceremony of the Mass Challenge in Jerusalem. Nearly 50 start ups from differing sectors will be housed together in an incubator for about 12 weeks. Mentors and investors will be brought in to visit and to encourage.

Similarly, a new US$100 m biotech fund has just been launched to invest in Israeli pharma and medical kits. And a US15 million agritech incubator has been set up by a group of local and overseas investors. Really vibrant stuff!

B) Cisco has made another yet another purchase in Israel. Cloudlock was started in 2007 in Tel Aviv and has grown to 150 workers. To date, US$38 million had been invested in its efforts to promote security via the cloud. Jon Chambers has announced that he has agreed to a valuation of US$293 to include it in the Cisco empire.

C) MIS is located near Nazereth and makes dental implants, not a very sexy subject to many a folk. However, its 420 workers caught the eye of the NASDAQ company DENTSPLY, which has laid out US$375 m in cash for its sales base in over 50 countries.

D) And in a more general note, the good word on Israeli Fintech continues to seep out. According to KPMG, around about US$ 5.7 billion has been invested globally into the sector in the first half of 2016. Roughly 12% of that can be attributed to Israeli tech. Impressive.

But, and there is a but, the future remains grey. A recent OECD survey of 34 countries ranked Israel as 28th and 29th respectively, when it comes to reading and maths. Japan was placed first. What can of base is that for the next generation of entrepreneurs?

Something needs to change, and fast, when considering the future competitive strengths of the ‘start up nation’.

 

Israel’s worrying economy: Anyone in government listening?

23 June 2016
2 Comments
Categories: Afternoon Tea in Jerusalem, Business, Israel

Unemployment is way under 6% in Israel. Chinese venture capital is surging into the Holy Land. Some would argue that Israel is bucking a global trend as foreign investment continues to flood in:

……during the first 10 days of June, a total of $237 million were invested, mostly by foreign investors. The first 10 days of May saw investments totaling $28 million, with $327 million invested during the entire month of May. The sum for the first half of 2016 is approaching $2 billion.

But, and there is a big “but” as I have mentioned several times  since the beginning of the year. There is also an increasing surge of worrying signs that the economy is not just slowing down. It is losing its competitive global edge.

For example, the rate of growth for the first quarter of 2016 stood at a paltry 1.3%. An index used by the Bank of Israel, which combines leading economic indicators, progressed by an insignificant 0.13% in May.

The Chief Scientist, Avi Hasson, spelt it out very bluntly this week. Hightech in Israel is struggling, both in order to find the correct resources and in competing with other countries – which have successfully improved on the ‘Israeli formula’.

  • If in 2002, the government invested almost 0.8% of the GDP in high-tech, that stat has dropped to under 0.6%.
  • The country already lacks thousands of engineers.
  • That employment hole is not likely to be filled soon, as currently less than 10% of students apply for a science degree. (In 2004, the proportion was 13%).
  • Both the Bloomberg and WIPO Global Innovation Index show Israel dropping down the ladder by six or seven places over the last year.

If there is a message in all of this info, it is that something major is not right. As Bloomberg itself noted: “Israel’s long-held status as a hotbed of tech innovation is under threat….”. The government seems less interested, tax incentives are no longer competitive and new regulations are piling up.

Google’s chief, Eric Schmidt, and Cisco boss, Jon Chambers, have echoed similar comments in recent weeks. Israel is no longer number the only country in the game of start up nations.

In itself, none of this worries me. Text books are full of economic cycles. Britain led the industrial revolution, based on steam, only to be overtaken by Germany and the USA. Yet today, the UK is still arguably the world’s fifth largest economy. It learned to adapt.

What does concern me, big time, is that for all these warning signs, the Israeli government has not taken one major policy stand on the issue. The mandarins and the politicians in Jerusalem appear either incompetent and / or uncaring as to what will happen to the future of our economy.

Struggling to manage your work schedule? 3 practical tips to change things around you

22 June 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

This week, I checked in on one of my newer clients near Jerusalem, a start up in the field of arts. The assignment had not been done. Papers scattered everywhere. Stress written all over their face. And now they had to grapple through a session with their business coach and mentor.

No amount of coffee (nor chocolate) was going to be of any use, surely? And yet……….Time to take a step back.

First things first. I have just seen a lovely quote on Guy Kawasaki’s twitter account. He cited the CEO of YouTube, Susan Wojcicki.

If you are working 24/7, you’re not going to have any interesting ideas.

Never was a truer word said. If you keep burning the candle at either end, you may somehow complete tasks, but you will lose effectiveness. For example, you will start to become hassled and forgo the trust of those around you. Innovation and creation will be concepts of the past.

My client is on the go all day, every day, 24 / 7. They are not hanging near the breakdown zone, but they are not thinking as straight as they should be.

Also this week, I came across an insightful article on the Harvard Business Review from Steven D’Souza. Entitled “Don’t get surprised by burnout”, he discusses the telltale signs that indicate when we are overworking. As he correctly observes: “The truth is, we are much more fragile than we think.”

What I really liked was the suggestion, which reads like a request from the heart.

Welcoming gaps as opportunities to rest, not inconveniences.

Again, another powerful statement. Stop treating 11.00pm as an opportunity to finish off a task in peace and quiet. Once this becomes a habit, you will be sacrificing your beauty sleep. Thus you cannot wake up refreshed, full of engaging thoughts.

Finally, if you are faced with that situation, when there seems so much to do and so little time to do it in, go find a pen and paper.

  • Draw up a chart. Itemise each specific task that has to be completed. That is identify what is a ‘must’ rather than merely ‘a nice to do’.
  • Prioritise the duties in terms of high / medium / low.
  • Estimate how long each one should take to perform.
  • Give each line a specific time entry in your calendar or work diary.

How does this help? Try it for simplicity. Suddenly, having broken up the horror, everything will become so much more doable.

The CEO demands 10 ways to reduce our expenses, or else…….

17 June 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Having trained formally as an economist and now operating as a business mentor in the Jerusalem region, I have seen this scenario upteen times. Either because of a cash flow crisis or because the CEO just feels like, a demand is issued to cut costs.

Depending on the size of your organisation etc, there almost always some likely candidates for the chop – the employee nobody cares for, that extra advert, the new equipment that can be purchased next year, a few accounting tricks with the pay packets, and so the list goes on.

For a more detailed look, you can check out a set of ideas from biz guru Barry Moltz; “10 ways to reduce expenses right now”.  All are worth considering. And most can be summed up under the theory of trying to get ‘more for less’ from your suppliers.

However, while not ignoring the need to control costs, let me point to another solution. How about concentrating on upping expenditure – should I say, investing more resources – in marketing and sales! What would happen if your company took a relatively small sum to beef up those people who go out and bring in real money?

I remember years ago hearing of somebody who bought a large but failing retail outlet in Hong Kong. The new owner’s first move was to increase salaries to baseline employees. The cash started to pour into the tills.

In contrast, I know of one dominant subsidiary, part of an international concern, where the managers overseas are driven by ‘bottom-line numbers’. The default thought process is that if pre-tax profits keep falling, than costs have to be hauled back. Little time is wasted on creating and implementing a new strategy to meet changing demands.

And it is that concept – strategy building and seeing it through – that I stress to my customers as their business coach. Many try to push me back, because such a step can draw out their own weaknesses. However, cost savings only take you so far. Generally, they do not create wealth.

So next time you want to improve your cash flow, try thinking laterally. Consider raising expenditure if you can see there is a reasonable chance that it will provide you with long term additional revenues.

Unexpected Israel – Unexpected Jerusalem

15 June 2016
No comments
Categories: Afternoon Tea in Jerusalem, Israel, Jerusalem, Palestinians

People who live in Israel often have a problem explaining the ‘true Israel’ to outsiders. They are encouraged to believe by international media that the modern-day Holy Land is engulfed in violence 24/7, while the locals are rude and abrasive.

Moving rapidly away from this over simplification, Ruth Corman has released a beautiful book entitled “Unexpected Israel”, which rightly highlights unusual individuals or the peculiar characteristics of groups in Israel. Together, the sum of the parts is what makes Israel so wonderful and thrilling.

The book reflects close to 90 anecdotes, descriptions or just cameos, all enriched by some excellent photography. For example: What is so unique about playing ‘matkot’ on the beach at Tel Aviv? Alternatively, Corman gives deserved space to the amazing fauna and birds that have entered and conquered the country over the centuries. And she then describes the numerous types of pilgrimages that swamp the country throughout any given year.

It is this last point that truly struck me. So many of her observations seem to focus on people outside Judaism. On reflection, this is a triumph for the pluralism inherent in most Israelis.

However, as  a blogger who tries to find the ‘unusual’ in Jerusalem, I must quickly acknowledge that this is where Corman excels.

  • Tsegue-Mariam, the Ethiopian nun, who escaped fascist and Marxist torture in order to play the piano in the Holy city.
  • Elia Kahvedjian, an Armenian, who survived Ottoman persecution and set up a thriving photography business in central Jerusalem
  • Those many worshippers who write notes of hope and prayer, leaving them in the cracks in the Western Wall.
  • Hassadna, a musical school that strives for excellence, while deliberately looking out for the physically and financially distressed children who want to learn.

Unexpected, but this is only a partial list. That said, my favourite story refers to Dr, Yossi Leshem, who realised that more fighter planes are lost through “clashes with migrating birds” than through enemy action. His solution was to create a fleet of aerial drones to report about the movement of birds.

Leshem’s scheme is so successful that it is supported by Palestinian ornithologists. Jordan and Turkey have incorporated his techniques. And he is in the process of setting a system that will bring together countries along the whole of the African Rift Valley.

Without fuss, Leshem along with countless other Israelis have found a way to breach the established rules of hatred in the Middle East. But you will not read about these stories in the established media.

Israel is a country that never ceases to surprise, and Jerusalem remains at the core of this adventure. It is a duty of Ruth Corman and her others to reveal yet more ‘secrets’ of this small country.

Still searching for Israel’s economy – a sad truth

13 June 2016
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel

Despite the attempts of the cleverest government spin doctors, the Israeli economy is drifting. Worse, nobody seems to be doing too much about it. Last week brought new evidence to that effect.

On the positive side, external investment continues to arrive into selected sectors. Since the so-called BDS – boycott Israel campaign commenced in 2005, FDI has actually tripled. Orbimed, the world’s largest medical VC, has just raised over US$300 million to invest in the Holy Land. Resources are even making their way in to the Arab sector.

As if to prove the point, a competition was held last week featuring former soldiers in the elite 8200 unit. They have initiated start ups like Intensix – handling big data for medical institutions during emergencies – and Sensory Treat, which helps children with special needs. The winners received some healthy handouts. The fact is that on the back of these successes, the average wage in Israel continues to climb steadily.

But, and here is a ‘big but’, “two thirds of Israel’s population employed in the workforce receive below the average national wage”. As I have described before, Israel is a country of two economies.

It is five years since the ‘cottage cheese revolution’, where hundreds of thousands of people protested against the high and rising prices of basic goods, such as cottage cheese and vegetables. The government promised action. Committees were set up. Talk was everywhere. And today?

However since 2011, the cost of a 3.5 room flat in Tel Aviv has climbed from 2.4 million shekels (US$ 0.65 million) to about 3 million shekels. It is estimated that whereas previously it took 130  monthly payments to put down a deposit on a flat, that stat has gone moved onwards to 150 payments. Younger couples, the core of the new middle class, are being squeezed out of the housing market. Meanwhile, vested interests continue to block reforms in the banking and vegetables sectors, also a major negative impact on the middle classes.

Where to now? The Israeli government has yet to make a move. There again, we have been waiting for something serious economic policy to emerge for at least two years. And patience is not a commodity known to be available in quantity in the Middle East.

Innovators and mentors – a very cool twist to note

10 June 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

A client of mine in Jerusalem has just been accepted to an accelerator. Earlier this week, I was discussing with her what kind of business mentor or coach she would like to receive from the set up.

Her response was straight to the point. To summarise: obviously somebody who knows a great deal about her area of commerce and has similar experiences to share. Right? And she expected my immediate approval.

I disagreed. Knowing better than to give an example of my experiences, I referred to David Clutterbuck’s book “Everyone needs a mentor“. In what could be an example of what he describes as ‘reverse mentoring’, Clutterbuck described a situation where golf and tennis coaches swopped professions.

The result was incredible. Although not proficient in the respective sports, the coaches were able to identify new weaknesses that the ‘regular’ trainers had not spotted or handled. The players were delighted.

I have to admit that the face of my client remained skeptical. However, with some ironic timing, I came across a new blog from the Harvard Business Review on how Cisco has successfully encouraged innovation in recent years.  Stephen Monterde, Director of Corporate Development at Cisco Systems, explained that: –

At Cisco, we are learning to answer these questions – responding to technological challenges – through three initiatives designed to broaden our knowledge base by bringing multiple perspectives together: embracing diversity within our walls; reaching out across industries; and building partnerships with former (and current) competitors.

To summarise a fascinatingarticle, what this multinational achieves is the creation of a ‘sandpit’ of human resources, ensuring that new ideas are exposed to the views of all departments. It is this diversity, that deliberately crosses boundaries, that drives Cisco’s constantly evolving commercial successes.

And if Cisco employees can listen to others ‘outside the comfort zone’, I think there is a lesson here for all of us.

Jerusalem to Tel Aviv: How the anger shifted

9 June 2016
No comments
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

If I normally write about business in Israel and primarily in Jerusalem, the events of last night force me to discuss what happened in Tel Aviv.

Two young Palestinians, dressed up very elegantly, ordered coffee at the popular Max Brenner restaurant in the trendy Sarona market complex in central Tel Aviv. Nothing wrong in that, except that once they had calmly finished their drinks, they slew at point blank range four fellow customers. The security camera captured the massacre.

Since the Autumn of last year, Israel, and particularly Jerusalem, has been the subject of a number of horrendous terrorist incidents. They typically involved random stabbings of innocent civilians.

However, the attack in Tel Aviv has created a new atmosphere, one that has captured the viewpoint of just about all Israelis, whatever their political or religious take. After the anguish, a feeling of deep, deep, deep anger has rushed to the surface. So what was different about last night?

  1. As the video graphically depicts, the attack was cold blooded, just like recent events in Paris and in Brussels.
  2. Despite the comparisons to events in Europe, the BBC, CNN and many others have not been able to call the slaughter a terrorist incident. Somehow, when it comes to Israel, the country is judged differently to 199 other countries around the globe. That stinks of something very putrid.
  3. The attack took place in Max Brenner boutique chocolate restaurant. This chain has many branches overseas and has often been the target of calls to boycott Israeli products. With a very bitter taste of irony, the protest posters include an image of a menacing Israeli soldier, carrying a machine gun……………horrifically similar to the one used by the Palestinians in the attack. Such hypocrisy.
  4. Once the incident ended, the injured were taken to hospital and treated on the basis of ‘most serious come first’. And that included one of the terrorists. Pictures available on the net clearly show the man being treated by a team of Jews and Arabs, despite the carnage the patient had caused barely an hour beforehand. Yes, Israeli medical treatment does not discriminate, but then you have to ask why no Jews are treated in Palestinian hospitals.
  5. Meanwhile, condemnations have come in from the Secretary General of the UN, Prime Minister Cameron and others. Staff from the Australian embassy in Tel Aviv visited Sarona this morning in support of the families who have suffered. And yet….

And yet…..in Gaza and in the West Bank, sweets were handed out in celebration of the killings. One of the largest groups in the PLO described the incident as a “natural response“! Hamas praised it and President Abbas has remained silent.

It sickens. It hurts. It is gut-wrenching. However, for me this is not the cause of my anger.

What truly annoys me is that in another day or in another week, the EU and Obama and others will put this ‘shooting spree’ to one side and call on Israel to make compromises towards peace. As in the past, predictably no such demands or pressure will be asked of the Palestinians.

Remember Paris? Recall Brussels airport? Did the politicians in Europe respond by offering the assailants boxes of chocolates (from Max Brenner, sic?). Israel is treated differently. That is morally repugnant, and this attitude represents a threat to my family.

So I will not apologise for standing up and shouting, very very loudly: I refuse to accept it. Terror needs to be fought, not appeased. World diplomats really must think again, before the attacks spread beyond the capitals of Paris and Belgium.

Small businesses and using digital media – 2 quick and practical tips

7 June 2016
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

It is a subject that comes up very quickly in discussions with new clients. As a business mentor and coach, how can I advise small businesses in their approach towards digital media? Should they create their website by themselves? How much should they invest in SEO and key words? And how……..the questions roll off the tongue.

Just this morning, I met up with a new business, which had created its own site. It was clearly in need of improvements.

I have no intention of trying to cover all of these subjects in one blog. However, yesterday I moderated a session of the Jerusalem Business Networking Forum. The session was dedicated to ideas that ‘take marketing to the next level’. Two speakers, Avi Maderer and Charlie Kalech, gave some awesome presentations that unlocked some of the secrets of digital media.

Avi was quick to point out that you need to deliver and keep delivering quality and relevant content. In order to do this, you need a ‘clear perspective of your niche community’. Otherwise, you will be wasting your time, creating materials for the wrong people, who simply may not look at the information. (And especially for small enterprises, they lack time and resources. So this is a double blow).

In some ways, what is described here is a pretty obvious message. Yet you will be surprised how often I come across people, who ignore these guidelines.

Charlie delved more into the specifics. Google has ensured that SEO and key words are becoming increasingly old-hat. This kind of approach is less likely to drive new customers your way.

Instead, a small business should concentrate on the “intent” of the potential customer. What questions do people ask, when they go to Google? Who are the ‘people in authority’ in your field, and what are they looking for? Dig into these issues and you can start to create some great and directed content.

How much time and money should a small business invest in digital media? Again, the answer is too complex for one blog. That said, from my experience, those CEOs who bother to take the effort to get it right tend to end up with a big fillip in their sales.

Israel’s economy: Anybody at the top care to help?

3 June 2016
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

One of the main reasons that I started this blog was to highlight to many others what the Israeli economy has to offer the global market. By contrast, over the past 12 months, I have been increasingly forced into a position of shouting “Help, danger ahead!”.

Earlier this week, one of the country’s leading financial journalists found himself in a similar position. Sever Plocker laid it out from the top:

  • In the first four months of the year, exports have fallen 22%
  • They had already started tapering off late in 2015
  • Hightech exports, a key factor for years in determining Israel’s growth, are 32% lighter.

You can add in to that property prices are still rising, and are forecast to continue their upward spiral in 2016. It is hardly surprising that the OECD has lowered its forecast for 2016 from 3.2% to 2.5%.

In itself, these patterns are disappointing. What is disastrous is the lack of response to the problems.

  1. The Prime Minister is determined to create a 24 month rolling budget, even though the relevance of such a move is unbelievably cloudy.
  2. The Minister of Finance, Moshe Kahlon, is trying to reform  the procedures to import food, which would lower basic prices. However, a coalition of vested interest groups are holding up the changes.
  3. The development of the offshore gas fields is stuck in the courts.
  4. And………..well, there does not seem to be a lot to report on.

You see just because you announce a new economic policy to help business, the effects take time to work their way through the system. Meantime, the current trends are able to play themselves out without restraint.

Bottom line: If the OECD has already slashed is forecast by a near 1% in just a few months, how bad will thing be for the Israeli economy by the end of the year? Where Bibi fiddles, simply nothing seems to be burning with desire.

Client Feedback

"Michael transformed the way I think and approach working, and also how to monetize my social media and communal projects."

CEO of digital media company

"Michael helped my high tech company take off."

CEO of clean energy start up

"Michael has been an invaluable resource to me throughout all of the steps of starting up my business."

Art Studio owner

“Working with Michael Horesh is like having root canal treatment, marriage counselling and business coaching all rolled into one, successfully.”

CEO of digital media company
CEO of clean energy start up
Art Studio owner