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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.

The rise and fall of Netanyahu’s economy

29 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Israel’s GNP per capita has risen about 50% since 2001. Global credit crises and battles with neighbouring regimes have not halted the consistent move forward. For much of that period, Bibi Netanyahu has either been the country’s finance minister or Prime Minister. And thus, he can take much credit for these improvements.

Today?

This week, the Office of the Ombudsman issued an analysis on the state’s monopolistic Electric Corporation – overstaffed, overpaid, uncontrolled pricing to consumers, no strategy, and a vast list of irresponsible actions. Actually, this was the fifth such report in twenty years, dating back to 1996. And guess who should have been tackling the problems?

The report was released in the same week that a severe storm led to tens of thousands of homes being cut off from electricity for days. On the day of the storm, the union declared an ‘Italian strike’. And it has since emerged that the corporation has failed to invest in key infrastructure projects.

If only it were just the Electricity Corporation. Last week, it was announced that he government was evaluating its policy over tax rebates for communities in remote areas. This is standard for many countries, and some changes are needed. What is noticeable, is that overall, there is a clear shift to those areas that favour the ruling political party of …Netanyahu. The most blatant example is the shift towards the towns (settlements, some say) in the West Bank.

What else?

The incoming budget was supposed to allow for cheaper imports of food products. The large local manufacturers and monopolistic importers have ensured that such plans have been buried for another year.

Back in 2009, there was an idea to create a special fund to help those factories, such as Phoenicia Glass. These companies tend to have social importance, often been a prime employer in a weak economic region, yet have run into financial difficulties. Nothing has emerged from countless hours of inter-ministerial discussions in fancy offices.

And then there is there farce of how to run Israel’s gas industry. For months, the government has been unable to decide who should monitor the new offshore wealth, thus impacting on future investments as well as current drilling schedules.

So this is the week that Israelis have suffered black outs and flooding due to poor infrastructure planning. This has also been the week when the Kenesset has been debating wage rises for its members, already some of the highest paid people in the land, and other benefits  for parliamentarians. And all of this in a month, when the country is finally having to admit that its GDP is no longer keeping pace with the increase in its population.

Israel needs and deserves better governance than this. Bibi’s previous success had been based on fundamental change and innovation. For the sake of the country, I hope his ego will allow him to remember that.

A Jerusalem Jew, Muslim, police officer – all loved by Oslo

25 October 2015
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Categories: Afternoon Tea in Jerusalem, Israel, Jerusalem, Palestinians

After the festive meal to celebrate the Jewish New Year, Alexander Levlovitch gave a lift to his daughters and was driving back home through the dark south-easterly streets of Jerusalem. His car was deliberately attacked. He lost control, but still had enough sense to veer away from others in order to minimize the loss of limbs.

He died clutching the steering wheel. Lawyers can argue whether it was the one kilo rock that struck his car or the incitement that the killers had endured which are responsible for the death of Levlovitch. The eulogies and articles merely describe a person, who sought peace between his fellow human beings.

Jerusalem and the region have been burning ever since. For example, thirty days later – and 30 days is significant because this is when mourners in Judaism remember the deceased –  “a Palestinian woman was shot after stabbing a Border Police officer near the capital’s police headquarters”. This was October 12th, a day of multiple acts of terror.

What was so special about this one specific stabbing? It is not that the terrorist was treated on the spot by an Israeli police woman. It is not that the terrorist was then taken to a hospital in Jerusalem, where care was delivered on the same basis as to everyone else.

What sets this story apart is that the police woman is Captain Maya Stolero, who’s late father was…….dear Alexander Levlovitch. She did her job. She is trained to help civilians. And that is what she did, regardless of race and religion.

It would be convenient to let the story end there. However, the incident raises a very troubling question. Agreed, not everything is ‘rosy’ in Israeli society. Yet, if this is how the Israeli police and local hospitals behave towards those who hate them, what are the Palestinians actually complaining about?

There are those who advocate on behalf of the Palestinians by claiming that they are poor, carved aside from regular society. They have no hope. And I bet there are stats to show that the Arab sector in Israel deserves a larger share of the national pie.

But to say ‘no hope’? I have just shown two simple examples of where such hope lies, daily. And what about the Oslo Accords of the early 1990s. As my wife reminded me, that framework was installed precisely to offer the kind of hope that the Palestinians are looking for today. Unfortunately, the violence of Arafat’s Intifada destroyed such dreams for many, of all persuasions.

And the rock that was hurled at Alexander Levlovitch’s car? It was as much about the desire for peace and mutual recognition and was that same Intifada. In other words, the terrorists are burying the very “hope” they aspire to, and you have to ask why?

Palestinian violence – the economies of two peoples

23 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Unfortunately, this week has seen yet another round of Palestinian violence and Israeli response. It is now evident that the cause is racial and ethnic rather than economic and social. That said, there was one moment of ironic laughter, when it was learned that nothing has prevented the brother in law of President Abbas receiving private medical treatment in  Tel Aviv.

But while these horrific acts occur on the streets of Israel, peoples of all persuasions are trying to make a living. In the Muslim parts of Jerusalem, store owners are not hiding their pessimism. Trade is right down. Both their Jewish and Arab customers are staying away.

As a business mentor with many several clients in retail and service sectors, I can report that the feeling is pretty mutual on the Jewish side of the divide. And regarding tourism, it is not that agents have cancelled trips for the present month, but the numbers for November and December remain bleak. It would seem that everyone suffers together.

However, there remain some bright spots.

First, foreign direct investment (FDI) in Israel remains strong. For example, a Chinese pharma giant, Haisco, announced this week a US$10 million venture with Endoscan. Similarly, Microsoft’s purchase of Secure Islands for US$150 million will enable the American conglomerate to base its growing international cyber activities in the Holy Land.

To give these numbers some greater perspective, it is estimated that for the first 9 months of 2015, FDI has reached US$3.2 billion, about 95% of the figure for the whole of 2014. The previous year, the total was barely US$1.5 billion.

What impressed me just as much was the announcement of a new government programme to improve the collection of taxes In Israel. Led by the consulting agency, Andersen, the aim is to add an additional 10 billion shekels – around US2.5 billion – to the kitty, annually.

That number is particularly significant just now. It is approximately what the treasury was intending to cut from the public accounts for 2016. Not only would these reductions have come from the defence sector, they would have also been withdrawn from the extensive road building campaign and social services that serve both Jewish and non-Jewish communities. Hopefully, they will remain unscathed.

Which of course begs the question: How is the Palestinian Authority using its war chest of billions, carefully protected overseas, to secure peace for all?

Do you really have a time management problem?

21 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Much of my work as a business coach takes place in and around Israel’s wonderful capital city, Jerusalem. Its beauty makes it easy to people to become side tracked by all kinds of issues.

And as a coach or mentor, I am often asked to help clients overcome the problem of time management. They are simply distracted and do not achieve even the most simple of tasks. They procrastinate.

This week, I have met separately with some very competent owners of small businesses, who are genuinely busy, nearly 24 / 7, all year round. When you start talking to them, you realize how dedicated they are. No internet surfing here just to catch up with the latest sports’ results.

And yet these same people purport to have time management problems. Why? Because they (and colleagues) do not fit into their day most of their mandatory tasks! This happens on a regular basis.

In other words, they work their guts out. What they do with each client or contract usually shows the hallmarks of high levels of competence. Yet, they do not feel that they are accomplishing anything. Seemingly, there is not enough time. But is this a time management issue?

Look again. What is really holding them back is a core fault in their business model. In other words, an imbalance exists between the total number of clients and how the CEOs are charging out for such services. Too few customers are not paying enough dosh. And so my CEOs find themselves chasing little sums into the dark hours of the night. This is the core issue that needs to be addressed, before all else.

And here comes a second common denominator. I found that my clients do not like to become involved in financial stats. I wonder why!

Is the violence in Jerusalem triggered by poverty?

19 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

The violence in the Holy Land reached a new level of horror last night. Until now, much of the Palestinian terror has been focused in the capital, Jerusalem. On this occasion, a young man ran amuck in Beersheba, killing at least one person and severely injuring many others.

A murderous act, directed against Jews. But what prompted it? Is it economic distress and poverty, as many international commentators and academics like to advocate?

Three facts stand out in this discussion.

  1. For all the problems with accuracy that the World Bank has in measuring Palestinian GDP, Gross Domestic Product, – the accepted international measurement of the size of an economy – the amount for the West Bank and Gaza is low. In current US$, the figure is US$12.8 billion. This reflects high unemployment, negligible collection of taxes, low wages, all of which combine in turn to have knock on effects re corruption etc.
  2. According to the IMF, there are dozens of countries, whose GDP is on a par or less than that of the Palestinians. To name but a few – Bahamas, Malta, Malawi, several pacific islands, etc. Yet despite the relative low income levels, most of these countries do not have swathes of citizens looking to pick up knives and guns and then use them against specific ethnic groupings.
  3. In a rare but fascinating social analysis of the families of some of those who have perpetrated these heinous crimes, it emerges that most of the attackers have come from ‘middle-class’ backgrounds. “They all lived in houses owned by their families, and had unlimited access to the internet. They all carried smartphones that allowed them to share their views on Facebook and Twitter and, among other things, to engage in wanton incitement against Israel and Jews.”

In parallel, it is also gradually emerging that the Palestinian Authority (PA) , which for decades has been crying about its empty coffers, has a veritable surplus of riches. For example, last week, I cited a Palestinian source that mentioned how the PA carries around US$1.3 billion in overseas investments.

And yesterday, I read some original research by Doron Peskin in the Hebrew newspaper, “The Calcalist”, which menas “The Economist”. The Palestinian National Fund was established way back in 1964. Today, it is directly controlled by President Abbas himself. Aside from donations from the Saddam Husseins of this world, every public employee in the PA ‘donates’ 5% of his salary to the Fund.

The total current value of the fund is unknown, although assumed to be in the billions. Peskin’s coverage of the financial worth of Palestinian leaders has proved to be accurate over the years.

So, if ain’t the money, what prompts a young Palestinian adult to pick up a knife and look for a Jew to murder? If you look at the backgrounds of Muhannad Halabi, Shuruq Dweyat, Fadi Alloun and others – male or female – for all their lives they have been exposed to incitement. It is available of Palestinian television. It is available in school textbooks, funded by UNESCO, which in turn is funded by Western taxpayers. And it is available on social media.

This is hatred. It is time for the rest of the world to shout “No, Enough. Unacceptable”. Otherwise, as has already happened on the streets in London and Berlin, these crimes will become another successful export from the Middle East.

Can Israel really export water?

16 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

For all the hype about Jerusalem and Tel Aviv, the geographical centre of Israel is the desert town of Beersheba. In fact, nearly half the Holy Land is non arable. Yet today, Israel is considered a ‘unique water solutions hub’.

To understand this contrast, I visited WATEC, Israel’s biannual conference on water technologies. With delegations from Germany, USA, China, Africa and elsewhere, this is a key event on the global arena in this field. To take one small example of why, I read in the introductory literature how Israel is cooperating with the city of Shouguang in China to upgrade its water and infrastructure performance.

Walking round the exhibition, I was struck the wide range of solutions and partnerships on offer: –

  • WE@EU is an innovative pan-European project, dedicated to enhancing research in water efficiency. A core player is the Migal Technology Centre in the Galilee, along with partners from the UK, Spain and France.
  • I was particularly fascinated with the practical approach of Lishtot. With the aid of its light, hand-held probe, you can detect within two seconds if your glass of water contains impurities. They hope to reach the market by the end of 2016.
  • Another favourite of mine is Solaris Synergy. The founders noticed that as 65% or so of the world is composed of water, most solar energy cannot be caught by traditional panels. Thus they have created and installed successfully floating photovoltaic systems.

WATEC was not the only major international conference taking place this week in Israel. Jerusalem hosted two thousand delegates, including Buzz Aldrin, at the 66th International Astronautical Congress. And Israel’s mobile conference, sponsored by the Calcalist newspaper, as ever drew throngs from overseas, as it usually hints at what Israeli companies have to offer at Barcelona in six months time. (The country has a track record of securing top prizes.)

These incredible capabilities, which will change the lives of billions around the globe, have been hidden from the world’s view. The media has found itself forced to focus on the Palestinian violence and those behind it. Sad.

Very sad. Because when it comes down to it, we all have a choice: To hate and to kill, or to embrace the path of partnership and understanding as have the people of Shouguang.

The irony of life in Jerusalem

14 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Yesterday, I attended a funeral in Jerusalem. It was conducted in an atmosphere of tension, due to the terror attacks in the south of the capital. And at the same time, on the other side of the road from the burial, hundreds of tourists were visiting holy Christian sites, seemingly without a care in the world.

And the previous day, NASA Administrator, Charles Boden, had signed a major cooperation agreement with Israel in Jerusalem at conference on space. Buzz Aldrin had been the key speaker for thousands of overseas delegates.

So amongst all the horror of the past few days – stabbings, shootings, attempted bus hijacking, 13 year olds carrying out attacks and more – I began to realise just how the press was missing out on the irony of what was happening. Call it satire if you want. For example: –

  1. Did you know that a UN official, Mounir Kleibo, was one of those who has been stoned and physically injured? Fortunately he is now recovering. Yet, one has to smile considering that this gentleman has never hidden his sympathies for the Palestinian cause. In fact, the UN never issued a complaint about the attack. As one Israeli quipped, maybe the UN is now asking their officials to serve as target practice for the perpetrators of violence?
  2. The incitement on Palestinian social media forums has reached new peaks (or troughs). Nabil Abu Ruedeineh, a spokesperson for President Abbas, claimed that Israel had “executed” a teenager. The gentleman ‘omitted’ to mention that the lad had been killed, only after he had stabbed others and was an uncontrollable violent threat to those nearby. In this case, somebody pondered that if Ruedeineh did not know the difference between “killed and executed”, many Israelis would (assumedly) gladly assist in a demonstration.
  3. When it comes to human rights, dozens of NGOs have been established in the past two decades. Their raison d’etre is to publicise – should I say denigrate – Israel and her faults at every opportunity. So how have they responded to this wave of senseless violence against innocent civilians? Most have been silent. A few have tried to place the actions in context of the Israeli army. You have to wonder why these people are so afraid to condone an atrocity in arguably the world’s holy city, when it comes to Jews suffering?
  4. And finally, amongst the hate and bitterness, and while supporters of BDS still demand that the world boycott Israel products, SKY News released an amazing report. Gulf states, such as Bahrain, are considering buying Israel’s Iron Dome defence system against missiles. This is the very system that thwarted Hamas in Gaza last year and was thus condemned as an unfair military advantage. And why do the oil rich folks need to buy the system? Because they are afraid of Iran and (thus, by definition) America’s inability to defend them. Oops!

You may call this blog satire. You may say that it is inappropriate in such sad times. Yet these points highlight what the much of the media is not reporting and / or does not wish to recognize.

The violence of the past month against Israel cannot be justified. Its purpose is to hurt and maim Jews. They are acts of anti-Semitism, planned and executed by those who have no interest in peace.

 

He was born and buried in Jerusalem

13 October 2015
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Categories: Afternoon Tea in Jerusalem, Israel, Jerusalem

Rabbi Yosef Eliyahu Salasnik, known to us as Eli, was born 90 years ago in the Old City of Jerusalem. The Holy Land was then governed through a mandate given to Britain by the League of Nations. Eli’s family was forced to flee their homes after the pogroms of 1929.

Growing up, Eli joined the Haganah, fighting to secure the birth of the new Jewish State against invading Arab armies, who were supported by much of the Mandate’s bureaucracy. Later on, Eli became a rabbi and was then encouraged in the 1950s to join a programme to study law in the UK.

Eli began to learn English, but the financial aid for the studies collapsed. Eli remained in England and became the rabbi of a small Jewish community in London. Despite everything, the community prospered and it was even able to support a primary school for 25 years. Eli was to be their spiritual guide for over three decades.

In parallel, Eli learned how to work in a neighbourhood that can best be described as diverse. The story is told of how he went into a shop in London with his grandson. Not feeling so good, the first thing Eli did was to sit down to catch his breath. Curious, the shop-keeper asked if they wanted to buy anything.

Eli’s response was immediate and accompanied by his ever-enticing and motivating smile: “No! We have come to see you!”. Eli got on with everyone, and everyone wanted to be with Eli.

I did not know Eli as well as I had wanted to. We would meet at family events. He was always busy, always trying to help – and always supported by his lovely wife. Eli passed away in London last Friday afternoon, just before the Jewish Sabbath, the day of rest. And his body was brought to Jerusalem for burial.

This Tuesday morning, I went to the funeral parlour. Unknown to me, as the service took place, hideous acts of terror and murder were being perpetrated in the Holy City, right near where Eli had been born and grown up. Later on, we buried Eli on the Mount of Olives, a holy site for Jews, yet which today lies in Ras Al Amud, the heart of what the world media calls Arab East Jerusalem.

I assume that if this had been in London, a younger Eli would have tried to have find a way into the lives of his new “neighbours”. That is not possible in the current climate. The present language of mistrust and hatred emanating from Hamas and from the Palestinian Authority does not allow room for such dialogue.

When you look back and see just how much Eli accomplished in his 90 years – for people of all backgrounds and faiths – you know just how wrong are these perpetrators of terror. Eli – rest well and in peace. You have more than deserved it.

 

What the Palestinians are fighting for – a new society

12 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

Hidden amongst the current round of violence between Israelis and Palestinians and ignored by biased reporting of the international media, there is a question that demands to be answered. Just what are the Palestinians rejecting? Beyond the standard hatred and vitriol of both sides, what do they object to?

The issue is critical. And three stories yesterday encouraged me to demand a deeper understanding of what is happening.

Remember, Sunday 11th October was a day when:

And now add in the following facts: –

  1. That same female was taken immediately to a hospital in Jerusalem. As per the seriousness of her injuries, she was prioritised treatment, which was offered by whichever team happened to be on duty at the time. All patients and staff are seen as equals, whatever their religious or political background.
  2. One of the first on the scene at Gan Shmuel was the senior police commander of the region, deputy commissioner Jamal Hachrush, an Arab from Kfar Kana. That town was also in the news yesterday, as teenagers rioted and blocked roads. Jamal is highly respected amongst his colleagues.
  3. And while the BBC refers to alleged stabbings in Jerusalem by alleged terrorists, almost inevitably the first people on the scene at such terror incidents are the paramedics from Magen David Adom, Israel’s equivalent of the ambulance brigade. There is a fascinating feature in today’s newspaper, featuring one such team; a Muslim, an ultraorthodox Jew, and a Jew who until recently lived in what is often termed an illegal settlement. That is correct. They operate together, as a team.

I have to ask myself another question. Where else in the Arab world, across North Africa and the Middle East, would you find such open pluralism? Why are the Palestinians so intent on rejecting Israel?

As the commentator, Robert Festenstein, surmised this week, if you were to ask most of these protestors what they thought about the racists of the Ku Klux Klan or the English Defence League, they would assuredly be horrified. The same can be argued of the supporters of the BDS movement, who nevertheless: –

embrace or excuse organisations such as Hamas which openly seek the death of the Jews. This is the same organization, which oppresses women, kills gays and incidentally any journalist who dares to publish the truth about their loathsome conduct and tactics. They would …..happily line up alongside Hamas and other Jew hating organisations because they are just that, Jew haters, ……..but they just don’t see it.

And thus, Israel for whatever it stands for and whatever good it does…………Israel, the one democratic society in the Middle East…….has to go.

I do not believe that all Arabs hate Israel. Peace can be achieved. However, is it not strange that many of the issues that Israel has had to face in the past few years, such as homicide bombers and the need for fenced borders, how these same issues are now on the agendas of politicians in Europe?

No, Israelis are not giving up. And I would encourage outsiders and analysts to wake up as to why they need Israel.

The surprise of the hidden Palestinian economy

9 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinian Society, Palestinians

As Palestinians and Israelis sink into another tragic round of reciprocal violence, the micro economies of each sector are also taking a direct hit. Small traders in the centre of Jerusalem or Nablus, providers of tourist services, businesses looking for investment, etc, – with some irony, there are similar effects on both sides of the divide

The Palestinians often claim that Israel can absorb the financial downside, as it has a larger economy. Maybe, but I am not sure why this is a justification for violence. And surely traders should want to protect their precious sources of revenue rather than support violence that destroys such wealth.

Palestinians and their advocates will also point to the weak base of the Palestinian economy, which has become a spark for much of the new troubles this month. There is a wealth of documents, detailing how the economy in Gaza and the West Bank continues to worsen.

But again, some of the murderers of Israelis have come from reasonable social backgrounds. To be blunt, there are many poorer regions in the world, and their inhabitants are not throwing rocks at innocent children and women in protest.

So, I must assume that the Palestinians are rejecting a perceived lack of hope. It is that damn occupation that is causing the desperation. Maybe, until along comes two little known facts, hidden away from the view of CNN, New York Times, the Guardian et al.

First, the Israelis often complain that the Palestinian leadership has been tainted – no, ridden – with corruption. For example, just look at how the widow of Chairman Arafat, Suha, lives in luxurious exile. More recently, there have been a series of leaked documents re Palestinian corruption, reportedly outlining rape and severe financial wrong doings at high levels of the Ramallah government.

And into this arena has jumped the respected magazine, “The Economist’, not usually noted as a friend of Israel. The editorial wondered how long it will be before locals reject the continuing “extravagance and graft in Ramallah“.

The Palestinian Authority (PA), the limited self-governing body in the occupied territories, has been plagued by waste, graft and accusations of both since its inception in 1994 following the Oslo accords. When auditors looked at the books three years later, they concluded that nearly 40% of the budget had been frittered away.

Second, and here is a genuine surprise for Palestinian economy, “a joint study by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) ….. has revealed that the Palestinian economy’s investment outside Palestine outweighs investment in Palestine from abroad by the end of Second quarter of 2015.”

To clarify for the non-economists: The Palestinian economy of its various sectors had invested outside Palestinian territory by more than the investment amount in the Palestinian territory from abroad to the tune of US$1,254 million. And if I can remind my readers – that is just what is recorded…officially!

So you have to wonder. If much of this money was left in ‘Palestine’, theoretically available for use on behalf of that nebulous average man on the street, how much of this current violence would still be taking place……….and which continues to destabilise the economies of all?

Does business coaching work? And for whom?

8 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

“Why do I, with all of my experience, need a business coach? And how do I know it will work?”

These are two of the most common questions – call them prejudices, maybe – that I am often faced by skeptical potential clients. Just to be clear, they are frequently shot at me by people who have dire problems in their firms. And as a business coach and mentor, I have to be careful in my response.

For example, last month, I held a meeting with a customer near Jerusalem to review progress.  I had encouraged the company to open a new sales position and to adopt new approaches in marketing. The first extra revenues were beginning to materialise. Could my CEO recognize this progress, I asked cautiously.

“No!”, came an immediate and grumpy reply. The spouse of the CEO, who happens to be in charge of marketing, strongly disagreed….once the CEO had left the room.

What reminded me of this case study was the result of a survey of 31 line managers, questioning who could see the results from a coaching course: the coach, the individual concerned, the manager of the individual. In this ‘3-way’ dialogue, it turns out that almost invariably “there were no significant changes in the coachees own perception of their transformational leadership behaviour following the coaching”.

The published study did not explain this phenomenon. My experience suggests, and I am not a psychologist, that there are two processes in play, when it comes to the coachee.

First, at an academic or intellectual level, most of us are able to make changes and to improve. We are “up for the challenge”. After all, that is why we receive a salary or run the company.

At a secondary level, we have been conditioned over time to feel a certain way about a situation. This makes it difficult for some of us to notice changes in our environments, particularly if we ourselves have contributed significantly to that difference. Why? I believe there is one key reason for this. We are trained to be modest and thus are unable to accept direct personal achievements.

I believe that the survey is only scratching the iceberg of a whole new area of research. We need to understand in far more depth why coachees are reluctant to understand their triumphs and what is the continuing impact of such ‘negatisim’.

Who is buying Israeli tech? 3 unusual takeaways

2 October 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Israel – the Silicon Valley of the Middle East. Yes, we have heard it all before. Yet as if to prove the point, CCTV issued  a fascinating survey on the next wave of high-tech companies from the Holy Land that could see international fame.

I want to take a few minutes of your time to focus on three facts that do not see the light of day too often. Yet, they are an important part of this phenomenon.

First, not all Israeli companies are located in Israel. For example “Singapore Dine’ is a local food delivery service, started by Kinneret Karin and Yoav Algrichi. They sold out this week to Panda Rocket, whose scope spans many global destinations.

Capital is not just raised through exits. A staggering number of Israeli companies are traded on NASDAQ. The current official total is 88, of which at least eight joined in the first nine months of 2015.

Next, the wave of conglomerates looking at what Israel has to offer continues to roll ahead. This week, the CEO of Philips, Frans van Houten, made it absolutely clear that Israeli tech will be featuring in the next wave of the company’s medical devices. Philips currently employs 850 people in Israel. It is now about to set up an incubator with generic giant, Teva.

At a time when Israeli politicians do not seem to curry favour in Washington and other diplomatic centres, Israeli tech is finding ever more ways to enter the homes and lives of billions.

Israel’s economic planners – who is awake?

30 September 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Last week, I questioned if Israel’s economic planners were able to listen to the confusion and distress in various parts of the economy. The boom decade since 2002 seems truly forgotten, due to lack of dynamic leadership.

Yesterday’s news did nothing to help mitigate that sinking feeling.

  1. The rate of VAT is to be reduced by 1% tonight to 17%. Great, but various surveys reveal that the overall net effect for somebody earning 10,000 nis (US$2,500) a month – approximately the average monthly salary – is about 30 nis. No big deal in the end! Waste of effort?
  2. More indicators have been released that the retail sector is in trouble. It appears that sales in large supermarkets were down by 1.6% in the period up to the Jewish New Year, one of the established testing periods. Oops!
  3.  The housing market is still being determined by speculators and investors. In 2015, it will take the average salary  earner 146 months to buy a flat. Less than 10 years ago in 2008, the same stat was 103 months. Ouch!

There may not be large scale poverty in Israel, but people are beginning to feel it and becomes unhappy.

The icing on the cake was finally revealed today. For at least a week, the shops have been short of key essentials such as many core vegetables, fresh meat, eggs and milk. The Herzog blames government has been placed on the Jewish festivals, which this year have landed on weekdays. Thus, people have not been able to work. Thus deliveries have not reached the towns. And, some of these dates have clashed with a Muslim religious celebration.

Come off it!  Such coincidences happened every few years. A more acceptable explanations revolve around the government’s continued tolerance of Israel tolerates restrictive practices. Farmers are protected from imports by prohibitive tariffs. Workers in meat slaughter houses have very generous terms of work. And that is before we get to start about the unions at the ports.

Should the government do something? Can these 30 ministers take any affirmative action?

Last week, military cemeteries in Haifa, Tel Aviv and Jerusalem conducted ceremonies to remember the fallen of the Yom Kippur War. These are bitterly solemn occasions. No minister was available to attend the events in Haifa and in Tel Aviv. ………So you think they are going to worry over some eggs and tomatoes for those they are supposed to represent?

The key reason why people love to write about Israeli start ups

29 September 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Item one: For the fourth consecutive year, Deloitte’s has rated Israel as the second best high-tech investment opportunity after the USA.

Item two: If you are looking for emerging hubs, the holy city of Jerusalem is now officially ‘on the tech map’, an amazing achievement for a city engulfed in a decades-old religious-geopolitical conflict.

What i am trying to explain is it seems how almost every day a leading tech website is discussing what is so hot about the Israeli start-up scene. For example:

  • Forbes has discussed 3 Israeli start-ups that have made it without raising large sums of cash. My personal favourite is Curiyo, as led by the wonderful Bob Rosenschein.
  • Business Insider has commented on the “27 hottest Israeli start-ups”.
  • Entrerpreneur has looked at why countries such as Israel are so innovative.

I could cite more stories. What really brought this theme together for me was an item I read today about Or Offer, who founded Similar Web. An Israeli, he had been preoccupied with turning a small family jewelry business into an international brand. Then he hit a problem over potential competitors.

In trying to resolve the issue, Offer realised that his way of thinking and thus his potential solution was exposing an internet-based market that nobody had understood existed. Similar Web has since go on to raise over US$40 million and currently employs over 200 people globally.

The point? Israelis have an ability to identify an idea, see the commercial possibility behind it, and then use internal passion to drive the concept towards waiting investors. That is exciting. And that is why so many bloggers are devoting more and more space to what Israel has to offer the world.

….And if by chance you still you want further evidence of the amazing opportunities I have highlighted, just watch how these multinationals have long jumped on the band wagon.

Israel’s economic planners – has somebody finally woken up?

25 September 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

“The growth figures were surprisingly weak.” Thus uttered the Governor of the Bank of Israel, Karnit Flug, in a press conference yesterday. Apparently, the economic picture in Israel has worsened faster than expected. The Bank of Israel Research Department cut its growth forecast for 2015 by 0.4% points, to 2.6%, and by 0.4% points for 2016, to 3.3%.

Surprisingly? I have been warning for nearly a year that such a situation was liable to happen, and I was not alone. The present government underperforms, when it comes to the economy. A few points are worth remembering

  • The previous cabinet was effectively a lame duck at the end of its tenure, and it really did not change too much in composition when re-elected in March 2015.
  • Post general election, it still took about 3 months to set up the new finance team
  • The budget was delayed in passing
  • There is no Parliamentary majority to pass difficult measures, such as the vital policy required for monitoring the lucrative gas industry.
  • Necessary structural reforms are rumoured – tackling restrictive unions, deregulation of food imports, bulging land prices, etc – rumoured but rarely make their way into practical laws.

Flug did point out that unemployment is still encouragingly low at under 6%. And the balance of trade is poised to shift more favourably. Yet, none of this cancels out the fact that growth has slowed significantly.

Where to next? The Minister of Finance, Moshe Kahlon, has lowered corporation tax and VAT in recent weeks, as part of a series of measures to turn things around. Yes, definitely helpful. However, this is really tinkering at the edges.

The Israeli economy needs strong leadership. It is time for some fundamentals to change. Unfortunately, not enough people appear alert enough nor have the courage to take these bold decisions.

Why motivational speeches just …..aren’t

24 September 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

I am a business coach and mentor. Sometimes, I feel that for every meeting I go to, I have to leave my client motivated, inspired, driven towards their next set of goals.

How I do this…..well that clearly depends on the individual situation. That is my skill set. Yet, compare that to what happened yesterday.

For 15 million Jews around the world, it is the holiest day of the year. Yom Kippur, known as the Day of Atonement, where the individual is supposed to venture into Synagogue and pray that they deliver true and meaningful forgiveness. And to aid them along the way, the rabbi will give a sermon that motivates them into such a process of anguish.

That is the theory at least.

Yet again yesterday, I was faced with such sermons. To be honest, I was disappointed. Long and predictable. No umphh! I briefly spoke to others who had visit different houses of prayer. They felt similar. Why is it that the professionals miss out, and so often?

Let’s face it. There is so much advice out there. For example, here is an inspiring message for the theme of Yom Kippur. Falling and failing are neither the hard part nor the main issue. What you need to remember is…..(open the video link)

And in general? There is plenty of stuff from the movies, which can apply to all of us. Al Pacino’s team talk is a favourite for many from “Any Given Sunday”. For those who like rugby (and are not afraid of some strong language), you can listen to Scott Quinnell on the “Team of Hard Knocks“.

And perhaps one of the best guides to how to inspire is the Ted Talk by Simon Sinek. In 20 minutes, he eloquently lays out how the great are the ones who can inspire and he shows how they do it.

Friends – always remember who your audience is. When you are trying to sell them something – a product, a service, a message of faith – understand what makes them tick. Then find the language that will appeal to them, and not just to yourself.

Vikings and that Jerusalem connection

18 September 2015
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Outside Iceland, the country is usually known for its Viking history, geysers, tourism and fishing. To that list, can we now add a hatred of Jerusalem? In a most bizarre act, the council of Reykjavik, the capital city of Iceland, decided this week to boycott all Israeli products. Thus, for these people, anything to do with the one Jewish state in the world of about 200 countries has become no-go territory.

Hmmm!

Let us understand this fully. We know that this is not a national policy of Iceland. Yet, we also know that no other country has been signaled out like this. Strange. For example, also this week, Sky TV analysed those countries, which carry out executions. Saudi Arabia, Iran and the USA lead the stats. And even Palestine had the number 2 against its name. But not a murmur about all this from our councilors in the North.

So what do they wish to boycott – an act, which by the way is a complete abrogation of the terms and spirit of the World Trade Organisation?

About a year ago, Michael Ordman helped to create a wonderful post, which set out to explain what would happen if you really tried to boycott Israel. For example: –

  • Throw out most Intel computers
  • With them will go ALL mobile phones
  • Voice messages, VOD packages, leading generic drugs, and a host of fruits and vegetables just will not enter your home

Assumedly, these are changes that the people of Reykjavik are happy to adopt at the behest of their leading councillors. However, the list would not stop there. Israel is arguably the leading supplier of water tech to dozens of third world countries.

One friend commented to me on Ordman’s list.

This is fascinating and mind blowing, but missing 2 major pieces. First, the invention of exelon, the drug at the forefront of the world’s attempt in managing Alzheimers diseases. It was invented by Professor Marta Rosin. And second, the invention and original patented technology to shrink a JPEG pics. This enables a photograph to be sent via email, whatsapp, face book. It is used by… well almost everyone. It was developed by “Picture Vision”, a Jerusalem based company, who’s CEO was Yaacov Ben Ya’acov.

Mobile, cyber, nano techs – there is no end to the involvement of the Holy Land in this industrial revolution.

And to give this some perspective, Giulio Meotti, an Italian journalist, surmised: For all the triumphs of Israel, “I don’t know another nation on earth which provides its own enemy with water, electricity, food, weapons, and medical treatment.”

If the council of Reykjavik are serious, then good luck to them in their boycott. I hope their voters and their families do not suffer too much. But I wonder if anyone will have the strength and honesty to call this act for what it is – anti-Semitism, just as practicised as far back as the eighth and ninth centuries in the days of the Vikings.

The Start-up Nation’s economy has stalled?

16 September 2015
1 Comment
Categories: Afternoon Tea in Jerusalem, Business, Israel

I have written a number of posts over the past year, warning that the planners of the Israeli economy can no longer rely on the success story of the past decade. There is a worrying feeling that they have taken no notice.

Since 2003, Israel’s economy has grown by over 41%. To give this some perspective, that is a similar stat to the European and OECD blocks, and dtill better than Japan or the USA. And that spurt has come despite wars on several fronts, as well as pressure from the burgeoning defense budget.

However, over the past few months, a string of economic data has emphasized that the whizz of yesteryear has evaporated. Growth was barely detectable in the second quarter of 2015. Exports were down by over 12%. Even imports plummeted.

In parallel, there are a host of structural issues that still hold back the scope for change. Ultraorthodox Jewish men and female Arabs are highly underrepresented in the work force. Vested interests control the distribution of local food and vegetables, forcing process higher. Ports, Electricity Company, etc are controlled by the unions. The government has proven itself incapable of moving forward the new gas industry towards full production. And so the list goes on.

On the positive side, politicians are tinkering with lowering the rate of VAT to help the poor. It is true that unemployment per se has not risen significantly. There is no run on the currency. Encouraging, yet as I speak with small business owners, everyone is cautious. Few are planning expansion. Nobody is convinced that the government is interested and has enough heart to bring about a critical change.

It is nearly six months since Netanyahu won another general election. You have to wonder what it will take to make him act in order to boost the economy. Time is beginning to run out.

 

I asked the business mentor: “Do I have to be happy at work”

10 September 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

I always try to start my day at work with something fun. It can be a really stupid story on Facebook. I love biz cartoons. And I get a real buzz checking the reports after my team has won…….at last.

The point is that as a business coach and mentor, I regularly see the link between good moods and top productivity.

Take one of my clients as a case study. They run a factory in the centre of Israel. The sales just ain’t been rolling in. There has been tension in the air for a long time. Whenever I would go there, I am greeted by sour faces.

In the past, I would deliberately set out to make the team loosen up, looking to engender smiles. And when that happened, they became more responsive to suggestions for change, rapidly.

This morning, I returned for the first time after the summer holidays. Yes, the cash flow still is not yet stable. And yet, something has changed. They are smiling. It is as if Mary Poppins has just whisked through the shop floor. By the way, sales are beginning to creep upwards.

It is amazing how many people are simply so afraid of allowing themselves to be happy, especially at work. David Levy has written an interesting post on the subject. “Happiness in both your business and personal life is sometimes a matter of subtraction, not addition.”

In other words, in order to become happy, all you have to do is cease from a ‘negative action’ or at least reduce it. However, just acknowledging that need to stop something, let alone being brave enough to enforce it, can be overwhelming. The person prefers sadness to change.

Which is where the biz mentor can come in.

South Wales or Jerusalem – who would you choose?

7 September 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

I do not normally comment on Israeli football – a fan, yet I despair too often – yet a most unusual series events took place this week, which deserve comment here. They brought together an unlikely combination, featuring the national team from Jerusalem, the Welsh team, and the livelihoods of millions of people in that great country of Cymru, and old fashioned hatred disguised as political correctness.

Let me explain.

Initially, there was a wonderful proposal to host an exhibition in Cardiff that was to explain how the Israeli football set up encourages pluralism. This was a creative idea to foster interfaith relations in a difficult period, especially when Europe is trying to work out how to cope with millions of refugees.

Sussex Friends Of Israel's photo.

Then along comes a solitary Cardiff councillor, Sue Lent, who claimed that Israel is in fact a racist state. Her efforts ensured that the exhibition was canned. Thus, the message about coming together could not be heard. If that sounds like a non sequiter, that is because that is what hatred is all about.

Yesterday, Sunday, Israel and Wales played out a boring 0-0 draw. In fact, there seemed to be more action of the pitch, as Welsh supporters of the Palestinian cause tried to make more noise than their own football fans. This clips from youtube and elsewhere tend to argue that they failed.

Arguing that a boycott of Israel will help the Palestinians is not just illogical, it is evil. That said, I am thrilled with today’s announcement from the British government, showing just how much Israeli tech and investment has boosted the economy of South Wales, having a positive impact on the lives of millions.

By allowing people to cooperate and learn from each other, then you will secure understanding that will learn to peace. By choosing to link Jerusalem with South Wales, the commercial and social benefits for both countries – for peoples of all religions – are simply enormous.

I attach the announcement in full below, as recorded in Hansard.:

Israeli companies have today announced £3million of investment in South Wales and growth plans that could lead to up to 100 jobs being created and £13million being spent with local suppliers.

The announcements are being made as a delegation of Israeli businesses visit Wales to celebrate existing Israeli-Welsh trade and investment links, and to explore new opportunities. 

The investment announcements are the result of close work between the UK Government (through UKTI Israel) and the Welsh Government. They include:

  • Newport-based SPTS Technologies – a Welsh anchor company and a global leader in the semiconductor equipment market – has announced that it has exceeded U.S. $1billion in exports. SPTS Technologies, owned since August 2014 by NASDAQ-listed Israeli company Orbotech, exports over 95% of its products to a global customer base. The $1billion export sales have been achieved since 2009, when the company was founded. 
  • The company was awarded £4.6m Research Development and Innovation funding by the Welsh Government last year for a three-year project to develop the next generation of products for Advanced Packaging applications and place the company at the forefront of the industry. It will create 30 full-time R&D roles in Newport and result in an anticipated additional £13m spent with local suppliers over the term of the project.
  • Sapiens International Corporation, a leading global provider of software solutions for the insurance industry, anticipates another year of double-digit growth. Sapiens currently employs 240 people in the UK and is expecting to grow its Cardiff-based workforce substantially over the next 12months.
  • Amiad Water Systems, a leading global producer of water treatment and filtration solutions, has announced that it has chosen Swansea as the location of its first permanent base in UK. Over the past two decades, Amiad has supplied innovative solutions throughout the UK – from the Eden Project and the energy-saving zero-carbon Kingston Heights Project to providing effective Cryptosporidium protection in multiple waterworks. Amiad will be creating 5 – 10 new jobs in the first year with potential for further expansion. Through its engineering skills and ability to innovate, Amiad provides cost-effective sustainable solutions for the industrial, municipal, irrigation, oil & gas and ballast water markets in 80 countries. 
  • Lordan UK has announced a £1million investment into its South Wales facility in Hengoed which manufactures high quality custom-made fin and tube heat exchangers for the global HVAC&R market. Lordan already employs 45 people at its Welsh operation and sees potential for further growth in the UK due to the developing needs of the UK economy.

Secretary of State for Wales Stephen Crabb said:

Our innovative technology sector is helping to harness overseas investment and create jobs in Wales.

Through the UK Government’s global trade network, international investors can see that Wales is an outward-looking nation and an attractive destination for business. Israel is a close friend of the UK and we enjoy an excellent trade relationship, built on decades of co-operation.

I want today’s announcements to be a catalyst for Wales to forge closer links with global markets and companies. This is a fantastic opportunity to show that we are open for business, open for trade, and open for investment.

Welsh Government Economy Minister Edwina Hart said:

I am delighted that Wales is proving to be such an attractive location for advanced technology companies from Israel and that we are seeing new investment as well as significant on-going reinvestment.

It is a strong endorsement that Wales provides the optimum environment for businesses to flourish and grow which is reinforced by the record number of inward investment projects from overseas companies that are choosing Wales above any other country as their location of choice.

The visit by senior executives from leading Israeli companies is most welcome as they explore new business opportunities in Wales and build on the growing links between our two countries.

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