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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 innovation – connecting Black Eyed Peas to Hutchinson Water

29 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

This morning, I read in the Hebrew press that Will.i.am’s smartwatch, owned by  the Black Eyed Peas frontman, has hooked up with ai.Type. This is an Israeli start up, based on a small farm and that specialises in keyboards for mobiles. This added capacity is supposed to enable the watch to compete with the likes of Apple and others.

Interesting as that is, what followed was quite phenomenal. I attended a conference at the Hebrew University of Jerusalem that highlighted how established conglomerates are deliberately seeking Israeli innovation.

I was particularly interested in the talk by Dr. Dan Eldar, the Executive Director of Hutchinson Water, the Hong Kong multinational. In one of his opening points, he stressed how Hutchinson deliberately chose Israel to be its global centre for water innovation. This recent video explains why.

Eldad highlighted Israel’s Sorek desalination recycling plant, which is one of the largest in the world. Its capacity is such that water is not just supplied to the Palestinian Authority. Water is also ‘exported’ to Jordan, whose resources are further stretched at the moment following the heavy influx of refugees from Syria.

Eldar was followed by Professor Uriel Levy of the Hebrew University’s Nanotechnology Centre. In 2015 alone, this complex was responsible for launching eight start ups. In total, they have applied for nearly 450 patents, and still counting.

One story that captivated me is a capsule that can be lodged in large electricity boxes. If there is a short circuit or other problem, a gas will be emitted. The capsule will detect the dangerous change and set off an alarm. Simple. Discovered by an electrical engineer? No way! A chemistry professor was working on a pharmaceutical project and simply injected a touch of entrepreneurial thinking. (Ironically, one mobile provider in Israel crashed last week, because of this very reason)

The examples of innovation flew in thick and fast, especially when discussing 3D printing. Lego in Denmark uses about 60 different colours of paint. From tomorrow, the toy giant may need to order just black and let technology do the rest. And so on.

Kudos to the organisers of this conference. And for those who view Jerusalem as just a metropolis for religious tourism, think again. The holy city is again beginning to change the world, this time with a stunning catalogue of innovative ideas.

Boycotting Israel – call for an improvement

28 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

This Monday morning in Jerusalem a conference will take place on how Israel and Jews around the world can combat BDS. This movement was founded over a decade ago to promote a boycott, divestment and sanctions against Israel and Jews.

Proponents argue that this is a justified response to Israel’s occupation of the West Bank. Supporters of Israel point to the campaigns similarities with laws that emanated in Nazi Germany. Simply put, BDS is anti-Semitism wrapped in the language of the politically correct.

Israelis note that boycotting Israel today – and why just Israel, as opposed to China or the many countries that abuse human rights such as through the use of the death penalty – is plainly hypocritical. Just take one level: Intel, Facebook, Google, Samsung and hundreds of other multinationals, who dominate lives of all, have large r&d centres in the Holy Land. Israeli know-how is thus present in the daily lives of billions.

On a micro level, I was struck by three stories over the past few days that show how BDS fails to comprehend the realities on the ground.

Shamir Salads is located in the heart of the West Bank. It has annual turnover of around US$35 million, primarily fuelled by exports to Europe. Employing dozens of Palestinians, all are paid with full social security payments such as national insurance and pension schemes.

Zvi Meir owns three textile factories in the Palestinian territories. He employs over 200 hundred locals. He estimates that his workers earn close to double what they could make in similar Palestinian enterprises.

And then there is Adel Sharfati. If you look him up on the internet, you will see that he is an Arab resident of East Jerusalem, very much opposed to the policies of the Israeli government. And yet, this man is about to be accept a special prize awarded annually by the Jerusalem City Council.

Why? Because Sharbati’s specialty is to resolve disputes between neighbours, which often have violent overtones. He never had any formal training and yet has been sought after by locals for over 30 years. Now his efforts are being formally recognised.

My point is that it would seem that BDS is clearly having traction in causing some neutrals in Europe and in the USA to despise Israel, and thus de facto to despise Jews.

On the other hand, the list of interactions between Jews and non Jews in all parts of Israel, including the West Bank is actually very long. You can observe this every day in hospitals, on the light railway in Jerusalem, in the Kenesset and elsewhere. These are all signs of Israel’s multifaceted, democratic society.

Evidently, BDS campaigners need to ramp up their hatred further if they wants to meet their targets.

The “shaming of Israel”

26 March 2016
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Categories: Afternoon Tea in Jerusalem, Israel

The terrible slaughter of 31 people in Belgium last week brought back equally horrific memories for all those who have suffered from modern terror in the past two decades or so. France last November; London ten years back; Spain, Bali, and of course multiple cities in Israel.

And whilst all these countries sent their messages of condolence to Belgium, only one is perpetually considered a rogue state – Israel. The continuous pressure of the BDS campaign is a testament to that international pressure.

The technical term for using the internet to embarrass people (countries, institutions, etc) is called shaming. Only this week, Sky News examined how this form of cyber bullying  – this time, with school children – is often cruel, ill judged and frequently factually inaccurate. Yet it continues and grows, and thus prejudice thrives.

And Israel, often seen as ‘politically incorrect’ has become a soft target. For example, a few days ago, an Israeli NGO released a picture, seemingly showing an Israeli soldier illegally shot dead a Palestinian. the victim was already severely wounded, having just attempted to murder Israeli soldiers. The international media was quick to condemn what seemed to be an unnecessary final shot.

Simple, no? It is an Israeli soldier, and therefore he is in the wrong…is the logic of shaming

It now emerges that the soldier, who fired the bullet, had identified a belt on the Palestinian that looked very suspiciously like a belt used by homicide bombers. A decision was demanded, there and then. The shot was taken.

Was that the correct decision? A full legal investigation is pending. However, imagine for a moment a similar scene in Belgium. Assume that the mysterious third attacker had not fled, but was caught up in the mayhem. He was wounded, badly, lying on the floor at the scene of the carnage, with his homicide belt strapped to him. He is then spotted by an armed policeman.

That policeman has to make an instant decision. Does he try to save the life of the bomber, which may then risk the lives of many more or take the shot and neutralise him? And if he took the shot, would he be shamed? I think not.

We grieve for Belgium and its citizens. The threat of terror has materialised into a reality. It is time for Europeans to learn from other countries on how to deal with this hatred, while protecting the democracy of multi-cultural societies. As far as I know, only Israel fits that ticket.

Signs of Jerusalem economy on the upturn

25 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The Jerusalem economy has been in the doldrums for quite sometime. However, finally the capital city of the Holy Land may be showing signs of an upturn.

Dating back to the last war with Hamas in Gaza in the summer of 2014, the Israeli economy took a hit. This was specifically so for the small enterprise sector, which is predominant in Jerusalem. Anecdotal evidence from my business mentoring clientele seemed to bear this out.

One headline in today’s local paper stresses a survey from Dun and Bradstreet. 8% of businesses in the Jerusalem region are in danger of closure. That downturn could impact on employment and then have further knock on effects.

However, there is a flipside to this. Maybe times are already changing. I have previously mentioned the success of JVP, the Jerusalem-based venture fund that has expanded its financial capacity this year for new projects. Other indications include: –

  • In contrast to the early winter months, reports from my clients now point to a change for the better in their sales since the beginning of February 2016.
  • The monitoring company RIS has noted a significant pick up in sales at the major shopping malls, ranging between 16% (Malha) to 25% (Ramot).
  • The Atarot industrial zone, where Jewish and Arab companies mix openly, now has plans to free up a further 30 dunams for development.
  • And if you want to get into the high-tech area of Har Hotzvim in the north of the city, space is not too easy to find. Hence there is much new building going on in the area.

It is impossible to be sure. However, it is clear that something is happening in the Jerusalem economy for all sectors. It is now time for central government to take responsibility to ensure that infrastructure is improved further and thus the upturn can continue.

Israeli high-tech goes upside down

24 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

This has to be one of the most surprising headlines concerning the success of an Israeli high-tech company.

“Israel’s Cellebrite linked to FBI’s iPhone hack attempt“

Bizarre, but true. The story is very simple. The FBI have been demanding that Apple Inc help them crack the phone of the San Bernadino attackers, who terrorised California in December. The mega conglomerate has refused to cooperate. Instead, the FBI has now turned to an Israeli cyber security firm that specialises in mobile forensics.

However, the background to the story also needs to be recalled. Just as Israeli high-tech growth has continued very solidly over the past few years, the country’s relationship with the Obama administration has gone in the other direction. Somehow Bibi and Barack cannot find a way to get along. So to find the top cops of America turning to Israel for help may at first sight seem a little unusual.

There again, this week Jews around the world are celebrating the festival of Purim. It recalls a time when Haman, the senior minister to King Xerxes – known in Hebrew as Ahaseurus – wanted to kill all the Jews in the Persian empire. Mordechai and Esther turned the plot around. The instigators were eventually hanged.

Parallels with the policies of modern Iran? History shows us that the obvious and the expected is not always what happens. Israeli high-tech merely exemplifies how this pattern continues.

We should offer congratulations for some assertive lateral thinking by the American detectives. And viewing Apple’s refusal in the light of the Brussels massacre, you have to wonder again if the company needs to rethink its policy.

The secret of Israel’s innovation success is…….

19 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The two announcements last week have almost slipped under the radar. And yet their significance for the Israeli economy could be immense.

First, Amazon, which is to strengthen an r&d centre in Herzylia, just north of Tel Aviv. The aim is to recruit dozens of software engineers to work on Kindle. These will join about 20 or so others, who are already employed under the relatively secretive Lab 126.

There is more. Amazon’s “Vision” team in Haifa is also to be bolstered. And Israelis will also be sourced to fill positions overseas. However, for now, little has appeared on the internet.

Second, and at national level, Israel’s Ministry of Economy announced “the selection of 18 technological incubators and one biotechnological incubator……The winners will enjoy an 8-year license during which projects they accompany can receive government funding of 85% of the budget approved for each company“.

What is impressive is the range of the licensees. The names of the partners include IPG/McCann, Boston Scientific, Motorola and the Cleveland Clinic. The big guys need to learn from the Unicorns.

It is interesting that much of the fuss in the social media has concentrated on JVP in Jerusalem, and with good reason. Preqin ranks JVP as one of the top-10 most consistent funds globally.

Clearly these two items are a massive endorsement in the continually developing story of Israel as the ‘start up nation’. What I find significant is how they have been barely reported upon. Yet over the next few years, hundreds will find employment, tens of millions will be invested, and exports will expand accordingly. In classic economic theory, this will create a positive domino effect.

And that is what much of Israeli innovation is all about – getting on with it. These entrepreneurs silently push aside existing boundaries in whatever was thought of as an immovable given.

Running in today’s Jerusalem Marathon with Meir Dagan who died yesterday

18 March 2016
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Categories: Afternoon Tea in Jerusalem, Jerusalem

Today I ran 21.1km, half of the full event in the Jerusalem Marathon. There were an estimated 25,000 people in total participating in the different runs.

It was a magnificent sight of orange-clad athletes. The route covered some of the most wonderful vistas in the world. We worked our way through the romantic Armenian Quarter of the Old City of Jerusalem, with locals cheering on. We had a stunning view of the Mount of Olives, which boasts an importance for both Jews and Christians. A moment later, I looked eastwards towards the village of Silwan and beyond in the direction of Jericho and the Dead Sea. Really stunning.

Nothing is simple in Jerusalem. Over the two hours or so, the weather changed from light rain to windy to sunny and back again. So unreliable. Is that why peace negotiations in this part of the world are complicated? Yet for all the vagaries, the colour and the noise of the event, something else was going on.

This was the sixth annual Jerusalem Marathon. On the one hand, the event (as usual?) was held against the backdrop of violence. The stabbings by Palestinians sadly have continued this week. In contrast, the runners were not just greeted in Hebrew and English. “Good morning” echoed out in Arabic and German and other languages in the centre of Israel’s capital. Participants came from all over the world, and not just Kenya or Ethiopia. I saw one runner sporting a vest from a Christian mission in Hungary.  As for the crowd, tourists of many persuasions joined the locals in cheering us on. It was amazing to be a part of this.

However, in some ways, one of the most inspiring moments for me occurred as we approached the walls of the Old City of Jerusalem. Now this is a wonderful bit of engineering, dating back nearly 500 years. And whilst the design is Ottoman and the area is divided into four “quarters”, for Jews this is the “centre of the world”. The Temples were built here. An outer wall of the Second Temple – the Western or Wailing Wall – still stands today.

It was amazing to think that Jews, in fact everyone, can freely run around it. For hundreds of years that was not the case, including when the Jordanians were in charge up to 1967. And that is when I began to think about Meir Dagan, a former Israeli general and head of the Mossad, who died yesterday.

Dagan had always wanted the public in Israel and his ‘spy acquaintances’ around the world to know what had inspired him. Some years back, he came across a picture of the Nazis beating and humiliating his grandfather. He was determined that history should not repeat itself. That meant Jerusalem remaining the unified capital of Israel, welcoming people of all backgrounds.

Here is to the seventh marathon and all of its participants, whatever their beliefs.

What Israeli hides about its record on female equality in workplace

13 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

International women’s day has come and gone for 2016. This year, as in 2015, the UN singled out Israel – and Israel only – for having a poor record in this arena.

Is it justified? Well, according to one stat quoted in the Hebrew press, over the past twelve months, there were 36,000 entries on Facebook to attack women. And twice that number was recorded in terms of detrimental comments (bitch etc.

On the other hand, there are more women than ever (28) in the Kenesset, Israel’s Parliament consisting of 120 representatives. This stat compares very favourably to the rest of the Arab world which can probably only average a paltry 5-6% female representation.

So let me expand on that very factor. Similar to other parts of the Middle East, Israel also has two large conservative pockets of society, where the role of the women is limited. To generalise somewhat, I am referring to the Ultra-orthodox Haredim and the Arab communities.

According to figures released by the Hebrew newspaper Yediot Ahronot, back in 2009, there were barely 1,500 ultraorthodox women working in Israel’s thriving high-tech community. By the end of last year, the number had jumped to 4,000. A further 3,000 will have finished training during 2016, ensuring that the trend will continue.

Let me spell out the point. The more women are seen and felt in the workforce – especially in positions of responsibility – the more they will be able to secure the respect of others. We have seen how the army no longer tolerates harassment. Women have reached the top positions in banking, the courts, ownership of football clubs and much more.

In a region of the world, where soldiers are allowed to rape in lieu of pay and women are executed without trial, Israeli women of all persuasion and ethnic background continue to show how they make a positive difference on society. It is sad if not down right pathetic that the UN uses its vast resources to condemn such vital progress.

Motivational speeches – the ‘ouch’ factor

11 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

We all have our favourite motivational speech. Many look to a particular moment in a TED talk. I am always fascinated by the ‘death crawl scene’ in the film Facing The Giants. And the recent video posting of basketball champs in front of US veterans is incredibly revealing.

This week in Jerusalem, I found myself encouraging several of my clients to move beyond established positions. It was my task as their business coach to show them not just that how progress is attainable. Even more, they can enjoy that change.

At 5.00am this morning, I found myself surfing the net and looking for an additional angle. I choose the first clip that Google found for me. CLICK HERE and watch for nine minutes.

Now I have seen so many of these talks and have become a little ‘acclimitised’ to them . So I was a bit surprised when I heard something that made me stop and think, literally. About half way through James Tarantin, speaking from a lectern, asks:

If competitive challenge is what excites people, why then do we choose the easiest challenges?

OK. That is powerful. It is certainly relevant to many of us and there is certainly a lot of me there. But then I asked myself another question. Why is it that that particular statement in all of the nine minutes that struck a cord with me? And that is when I let out an emotional “OUCH”.

Again, we all listen to or even attend such talks. We nod diligently at the wise comments. However, for the words to have an effect, we have to be honest with ourselves and we have to be prepared to change. We have to allow ourselves to go one step deeper and then ask why a specific phrase or sentence is so desperately pertinent.

It seems that my thought process had taken somewhere I had not wanted to go for a long time. Yes, it was unnerving for a moment, and then very cathartic.

What next? Some of my mentoring clients had better beware over the next few days!

Why Israel and the ‘start up nation’ had another successful week

10 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Microsoft in Israel is celebrating ‘big time’ at the moment. After 25 years in the Holy Land, the Bill Gates team has much to shout about. And next month, the tech giant will open another new centre – this time in Nazarethand thus deliberately targeting new employment for Arab men and women.

Look just a little further and you will quickly realise that these developments are just a small part of a yet another great week for the world of Israeli high-tech. Consider this selected list to illustrate what I mean.

  1. Intel is to lay out around US$175 to possess the Israeli 3D video tech firm Replay Technologies. In effect, this cements a joint venture that started back in 2013.
  2. In the field of biotech, the American investment group Maxim issued an incredibly positive report. It issued a ‘buy’ suggestion for 6 Israeli companies, where shares are considered to be undervalued by at least 100%.
  3. Cyber as ever was in the news. It was CyberArk making its third Israeli purchase, this time picking up Agata Solutions. Not bad for a 7-person outfit, located way outside the traditional Israeli techie zones.
  4. Amazon has concluded a lease for a 1,250 sq m site in Haifa to accommodate a new r&d quarter.
  5. Singapore’s OUB Group will invest US10m in the Jerusalem-based OurCrowd, which specialises in Crowd Funding.
  6. “The Nazareth Business Incubator Center announced the launch of Hybrid”, a programme supported by the government and ex-army geeks and aimed at bringing startups from Israel’s Arab community to the next level.

And so I can continue. These items show the extent to which Israel has become a key part of the international commercial community. In turn, the world has come to appreciate the country’s technological capabilities. Israel continues to deserve the honourable title of ‘start up nation’.

Jerusalem, March 2016: Still a city of miracles

9 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

It’s the 9th March 2016. This morning in Jerusalem, reckless acts of violence were committed against Jews, almost like in the days of the crusaders hundreds of years back.

However, despite the blood and suffering, there is one major difference between now and then. The perpetrators of old were seeking to replace one theocracy with another. This time they are attempting to destroy a successful pluralistic society.

And what is that pluralism and multi-culturalism? Well, in no order of importance, this is what is going on in Jerusalem over the next three weeks.

  • It is estimated that around 22,000 runners will take part in the 6th annual Jerusalem Marathon on March 18th. Around about 10% of the participants will have flown in specially from overseas.
  • Over the same weekend, the first International Bach Festival will take place in the holy city. Hosting a wealth of local talent and from abroad, one critic speculated that there is no other such celebration of music taking place on the birthday of the renowned composer.
  • To the world of high-tech, the city continues to show off its prowess. I have previously addressed the strengths of the biotech and VC sectors in Jerusalem. The recent international successes of Melodea, Lightricks, Mobileye and others confirm the point.

However, for me, what was really telling about today’s event near the Old City of Jerusalem was the nature of the person injured in the malicious attack by a Palestinian. Apparently:

….paramedics treated a man about 50 years old who was seriously wounded in his upper body. He was sent to Hadassa Medical Center in Jerusalem. The wounded man is (also) a Palestinian, from Beit Hanina, who was in his vehicle on his way to Jerusalem’s city center.

Yes, Jerusalem is open for business to all, whatever their background and religion.

Jerusalem: The mix of orthodox religion and modern entrepreneurship

2 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Jerusalem is primarily known as a centre for three major religions. When you talk about the land of miracles, this is the town where amazing events are supposed to take place. What many people around the globe do not realise is that for over decade, the ‘Jerusalem Syndrome’ has come to represent something beyond prayer. The holy city has become an entrepreneurial hub, looking to emulate the Silicon Valleys in other countries.

On Monday this week, I attended another very exciting networking event of BioJerusalem. Shai Melcer organised an excellent programme, showing how start ups can succeed, even under the present economic climate.

What stunned me particularly was a map that Shai’s team had collated. It pinpointed the ‘life science ecosystem’ of the capital. Over one hundred companies are featured – and I myself know of at least three more – located primarily in three clusters. That is quite an amazing achievement when you consider the political, economic and religious pressures converging on the city planners.

And I can tell you that if you walk around these centres, they resonate a tremendous verve of activity and dynamism. To give one small example, consider Brainsway that has rapidly developed an international reputation for treating depression in a non-invasive manner. Its technology is now used by the American navy.

The week has also featured a number of articles on JVP. Set up back in 1993, this venture capital fund is situated in the former premises of the government mint, tucked away in the south eastern corner of the city. From simple beginnings, from its doors have emerged global animation sensations and some of the pioneers of the world’s cyber community.

JVP is currently sitting on a fund of around US$200m. It has launched many successes – the share issues of CyberArk on NASDAQ and the exit of Cy Active are but two examples.

Today, JVP has an full technology agreement with Alibaba, the Chinese giant’s first investment in Israel. And the Hebrew press is now reporting that Indian’s wealthiest person, Mukesh Ambani, intends to set up a US$30 million hub with JVP, which will concentrate on the ‘internet of things’. Unsurprisingly, Geektime voted JVP the best venture fund in Israel for 2016.

For years, Jerusalem was a back water city. The economy was supported by government offices and religious tourism. Those elements still feature. However, the Jerusalem of 2016 has taken a giant step forward into the modern world, a change that conservatives will find near impossible to reverse and a dynamic that global investors would be advised to understand urgently.

Two great tips for a manager faced by the impossible

1 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

We all know the situation. Sometimes, when faced by a request or a challenge, we say “no, I can’t”. And in our heads, we determinedly tell ourselves “that’s impossible”. My clients often let out such responses to me, when I challenge them as their business mentor.

Just take a moment to understand that word “impossible”. Look at it from two levels; physical and …let us call it, logistical.

Starting with the physical aspect, we know today that even some of the most severe bodily restrictions have not stopped people running and jumping for Olympic gold. My favourite story is portrayed in this link of a young ballet dancer.

On a more practical level, many of us claim that we cannot draw. And yet, look how a fifteen minute ‘TED talk’ showed that such protests are complete nonsense. If you follow the presenter very carefully, all he is saying is “BREAK DOWN THE PROBLEM INTO SMALL STAGES”. Just start somewhere and then carry on in a modular manner.

But what happens when you shriek ‘impossible’, but you cannot state why? No full, credible, serious explanation is offered. You know what you want to do, but you feel you cannot get there…….for some undefined reason. In that case, what are the options?

Some blogs refer to that ‘epiphanal moment’, when we wake up. We realise that we are no longer losers, but can let our own actions determine our own future. Very true, and I have been there myself. I remember being in a lecture, when my peers decried a specific business model, which I thought could be effective. I simply decided on the spot that I had to ignore their advice and go-for-it. I have not looked back since.

But what happens if you cannot see what needs to be done? Many of us can identify troublesome issues. We know what is going wrong. However, we cannot move beyond that point. It is impossible….or it seems that way.

Quite often, what has happened is that we have bottled up our thoughts. We keep our worries to ourselves. We have been taught that we should not burden others with our problems. It is not fair. Anyway it is a sign of weakness, correct? Nonsense!

BY SHARING YOUR CONCERNS, VERBALLY, you are giving yourself access to the solutions of others, which you simply may not know about. IN parallel, physiologically, you are actually allowing your body to relax. This can only be beneficial.

Now let me explain how I know these suggestion are practical and do succeed. I write as the asthmatic, who was one of the worst at sports during my school days – many, many years ago. Yet about a decade back, I started to run on a treadmill. From two kilometers in the gym, I found myself running 10km outside and with yet more left in the tank. I pursued, constantly adding at little more distance each time.

Three months ago, it was suggested that I run a half-marathon. I said that I could not, but I had to justify my words, verbally. I could not. I was lost for an excuse. And so last Friday I clocked 21.1km in just over two hours in an event in Tel Aviv.

As they say, everything is impossible until you have done it.

Tel Aviv – ahead of the conflict and beyond the start ups

28 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Spend four days, consecutively, in Tel Aviv? I cannot remember the last time I did that. After all, for me and many people in the Jerusalem area, when we think of the city, we conjure up visions of a dense humidity, traffic aims and no where to park, claustrophobic high rise buildings, and a boundary lines that seems to take over other towns.

Wrong!

The problem starts with how people describe the city of Tel Aviv. They relate to it in terms that do not have that much importance to many of us outsiders. For example, Tel Aviv has been called the ‘start up capital’ of the start up nation. The first Arab-Israel start up school is to be launched near there. Flattering. Impressive. But this is not necessarily a reason to visit.

Alternatively, Tel Aviv is often referred to as possibly the most openly gay society in the world. In a region of geo-political conflict, such pluralism is a rare phenomenon and which must be treasured. But again, this is not something that advertises the cities best features for those outside that spectrum.

Yes, there is a better way to describe Tel Aviv. Simply look at its people and what they are creating.

Wednesday afternoon, I had two meetings in the heart of the city’s financial district. My young hosts were located in brand new structures, which had been carefully placed between old buildings that are protected by local by-laws. This is not just about protecting the past. This policy shows the next generation where they have come from and how they should not forget the lessons of the founders of the state.

On Thursday evening, I found a wonderful restaurant called LaSagna. Ostensibly, this sounds like another expensive way to serve up gluggy ravioli. Wrong again! I had one heck of a minestrone soup, followed by a wonderful plate of fresh paste.

The atmosphere was warm and friendly – a family business. The manager found my wife and I a quiet table, even though they were packed on an out-of-season February evening. And the talk? Yes, I deliberately listened to the conversation of others. Be it in Hebrew, English or Italian, most were discussing how they were going to get to the starting line of the Tel Aviv marathon. (This is to be held the following day.)

I too was in town for the run. But I had found myself a great location to stay in. I urge people very strongly to check out Alexander’s Hotel, relatively new and just next to the old ‘port area’. It is ideally situated for the local tourist, visitors from overseas or travelling business folk. And, it is literally a couple of minutes walk from the beach.

The hotel can be found in a quiet street. The staff appear to be locals and they go out of the way to be friendly. The décor is modern, yet relaxing. They kindly provide fruit and wine in the lobby, an unexpected treat. It was a delight to spend a couple of nights there.

As for the marathon, about 40,000 people of all backgrounds, including many from overseas, turned the streets of the Israeli metropolis into a sea of red and green tea shirts. It was a brilliant celebration of getting together, whatever you age, religion or colour. But more of that in my next blog.

For now, I just ask you to remember. Tel Aviv is open for business, to all, and its fun!.

Israeli high-tech does it again – 3 new champions

24 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

In a recent post, I described why how and why the Israeli economy is still advancing its strengths in human capital. The concept of the ‘start up nation’ is still very much in play. This week, we have seen three examples of that innovation come to the fore.

The big news is Oracle’s purchase of Ravello for a suggested US$500 million. Behind the numbers, what is important to recall is that the founders of Ravello, Rami Tamir and Benny Schneider, have five previous exits between them to their names. The total value of these deals is estimated at around at over US$600 million during the period 1999 to 2012.

What makes them special? They learnt at the Technion University in Haifa. They are known to be great team players. They are known to be open to critique. They do not claim to have all the answers but look to push the boundaries in the quest to discover more.

A secondary item has featured Nadav Tsafir, former head of the Israeli army’s legendary 8200 unit. His Team 8 Group has already raised US$18 million to sink into local cyber technology. They have just added a further US$23 million to their war chest. The backers include AT&T, Nokia, and finance houses from Japan and Singapore. Not bad for a company that has barely been around for 18 months.

And then there is the little known company called Lightricks from Jerusalem. Somewhat under the radar of press, they have developed two leading applications, Facetune and Enlight, among the most successful paid apps in the world. Three years on and they are looking to recruit a further 40 developers, even offering to pay US$25,000 if people will relocate to Jerusalem.

Whose next? Difficult to say. Last week, I met with one most creative lady in Jerusalem who came up with a brilliant, while skiing down a slope in Italy. Watch this space!

4 sobering thoughts when trying to recruit youngsters to your business

23 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

I have lost track. I think at least four companies have told me in the past two weeks that they have been trying to recruit teenagers / early twenties people for entry positions, and nobody is interested. As their business coach, what was my suggestions for launching them out of this mess?

Any common denominators these clients? Not really. We are talking about service providers, start ups, production lines, high tech. They are all in the Jerusalem area, but I know that this is a more generic problem.

“Generation Y” has been fascinating sociologists et al for some time. Shall we say, they are born in the 1980s and have been determined by all things ‘googleish and Facebook’. I prefer to call them the ‘WhataApp crowd’, where everything is immediate. These people often have high financial demands, while conversely claiming that money is not everything! Hmm….

So, how are employees supposed to recruit these people, when they themselves are usually only offering entry positions and / or unattractive starting wages? Here are four insights that should provide some hope for cash-strapped business owners.

  • Wake up! Times have changed. New workers do not see themselves as having a commitment to their place of employment. That is now the responsibility of the employee to foster, a.s.a.p. Previously, the onus was on the other side. So, before anything, the employer has to be prepared to think differently.
  • When greeting potential recruits, be positive. Smile! Show a willingness to engage. Naturally, this should be true with anyone, but particularly with new people you hope will get on with you. Dr. Robert Brooks describes this as the ‘culture of joy’, where people are motivated to work for you.

Consider the story of one company last week that recruited a teenager to work on tasks a, b, and c. On the first day, there was a staff shortage. So the new person was sent to train on tasks c, d, and e. He questioned and objected. He was told to take it or leave. No attempt was made to compromise, and so he decided to walk. The company lost out every which way and will probably have to up it s financial package now.

  • Try to offer incentives that are not financial based. A present for the birthday. Release everyone an hour early, as an end-of-week surprise bonus. A small personalized gift for all, as made by those with special needs. The list of possibilities is near endless, but it shows workers – especially younger employees – that the top guys care about them.
  • Finally, maybe most crucial of all, allow the youngsters to be creative and to innovate. After all, that is what they are doing every spare moment of their day via their apps! Do not curtail what they see as a basic right of expression.

Doubting Israel’s future as the ‘start up nation’?

20 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Over the past few days, I have not hidden my concerns about the problems facing the Israeli economy. Yet, when it comes to innovation and technology, the Holy Land has much to offer the rest of the world. After all, over 300 multinationals have already set up r&d centres in Israel.

The question that is often asked is ‘what next’. You have to wonder if the country can keep up with such a pace of renewal, constantly pushing the boundaries of high-tech. This weekend three separate news items seem to help in providing us with an answer.

First consider the upcoming annual World Mobile Congress in Barcelona. Israel will have the fourth largest delegation of exhibitors and its own pavilion of 140 companies. A further ten will be located in some of the main centres.

Then, I read in depth about Apple’s position in the Israeli market. An opportunity initially identified by Steve Jobs and now actively supported by Tim Cook, Apple has strategically moved its main hardware development activities to Israel. It employs over 800 people in the country, mainly engineers, and it is not stopping there. It has purchased three domestic companies.

In total, it is estimated that Apple has trusted Israel with over US$1.2 billion in less than a decade. Could you imagine Israel’s detractors trying to boycott that kind of pull?

And finally, there is the field of education. There are maybe around a 250,000 adults directly employed by high-tech establishments in Israel. According to the Minister of Education, Naftali Bennett, there are 257,000 children currently learning code in the country’s schools. As if to prove the point, only two weeks ago, I was shown a makeshift set up to teach wayward ultra-orthodox teenagers the basics of software.

Separately, these stories are interesting but not much more than that. When taken together, they show how the Israeli economy is continuing to develop new means to create further growth out of its advantages in human capital. And that is the change that is having a major beneficial impact on the lives of hundreds of millions around the globe.

Israel’s economy – what can be done?

19 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

It really bugs me! Despite wars and global recession, Israel’s GDP – the size of an economy – practically doubled in a decade to 2014. And today? According to stats released by the Central Bureau of Statistics “Israel’s economy expanded at an annualized pace of 2.2% for the final six months of 2015. This is the lowest six-month growth figure in Israel since the first half of 2009, when the world was in the throes of the global financial crisis….” .

What is worse is that you get the feeling that the government just does not understand. And as I mentioned earlier this week, the main economic impetus of Prime Minister Netanyahu currently is to create a casino for tourists in Eilat, a plan deeply opposed in Parliament.

There are warning signs everywhere that the economy is slowing down.

  • While the economy did grow by 3.3% in the last quarter of 2015, the surge was primarily led by higher consumer spending. Fine, but this is not what expansion should be based around.
  • Since June 2015, there has been a steady monthly decline in the growth of the number of new job vacancies. In fact, the number has fallen in numeric terms since November.
  • Government support for high-tech? Yet again, it seems the big companies are benefitting the most, while innovation is often found amongst the start ups.

Possibly the most significant sign of imbalance came with the headline: “Negative inflation is gaining momentum, but home prices rise 8%” (in January). That is one heck of an economic anomaly.

And the response from central government? Well, none frankly. Meanwhile, due to coalition politics, I believe the Prime Minister still holds about six portfolios. I suppose he is too busy with other important issues to have time to care what is or is not entering the pockets of his public.

Why do I need a business model?

18 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

When faced by investors or bank mangers, business owners are often called upon to describe their business model. Many do not know what this phrase means let alone how to explain their own definition. And then there is the question: Who needs a business model?

Let me answer through the use of a brief case study. Last week in Jerusalem, I met with a very experienced and erudite business woman, who was describing her new project. She had researched in depth and had created a team. There is a proven market, waiting to be tapped into. Now it was time to approach investors. How could I help?

As a business mentor, I gently asked what was the final service? How would it be packaged? How was it to be sold? Why? Who were the actual buyers and the decision makers behind the scenes?

As fewer and fewer answers were forthcoming, the conversation became quieter in tone. There was a realisation that as  a business coach, I was asking the questions people do not want to face. And as had become obvious, what I was really asking was what is the business model. This lays out the detailed theory of how any company intends to convert ideas into cash.

Time and again, I raise these questions. For example, consider what happened when one client recently ‘confided’ in me that they felt their market had shrunk overnight. When I prodded them for ideas, they replied with variations on a theme about what they are already selling. No, I demanded. What other skills and advantages can you sell to a new community and how?

Last month, I was challenged by a software company, who wanted to know why their agents were not selling. The discussion revealed that specific parameters had not been set – which potential clients agents should approach and why, and what is the company’s unique innovate offering. The result of the changes in operation? Several overseas contracts have been concluded.

The fact is the phrase ‘business model’ is banded around by many. What it means is understood by far fewer. And if I was to rank its importance? Define it properly (and test it), and you can make a lot of money.

Netanyahu fiddles as Israel’s economy continues to stutter

15 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

It is now official. A report released by Israel’s Ministry of Finance has concluded that Israel’s high-tech sector is no longer the prime engine of growth of the economy.

In the years following the last global crisis (in 2008), there was a significant slowdown in the sector (high-tech) and it ceased being the growth engine of the economy. Since 2010, the rate of growth of the sector is only half the overall rate of growth in the economy and the sector stopped growing as a proportion of total exports.

Ouch! And there is plenty of other evidence to confirm this worrisome news:

  • The recent WIPO global index, aggregating 79 performance indicators to assess innovation, ranks Israel at only 22nd.
  • A similar index from Bloomberg has seen Israel slip from 5th to 11th.
  • In an interview with the OECD’s leading economist, Claude Giorno, the respected analyst damned several key sections of the economy is being restrictive towards growth.

Not all is doom and gloom, as I had reflected last week. However, what is just as worrying is that Netanyahu’s government appears to fiddling while the city is starting to smoulder.

For example, yesterday the Prime Minister appeared at the High Court to justify the concessions to the gas companies. The fact of the matter is that they are the best of a bad deal, which is based on poor understandings of the potential revenues when first analysed a decade back. The rich will now get much richer.

And the other economic news of the day. A casino will be allowed in Eilat, another move to placate the rich, while maybe providing some local employment.

The analysis of the Ministry of Finance is a wake-up call, not just on behalf of the high-tech sector. Now is the time for Israel’s leaders to “lead”, utilising the skills of innovation to launch a significant economic strategy. However, I fear that political short-sightedness and individual egos will prevent them from carrying out what basic duty demands.

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