Afternoon Tea in Jerusalem Archives - Page 33 of 75 - Michael Horesh Business Coach and Mentor

29 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I have been acting as a business mentor for a particular client, who has not been having an easy time. Yet, at our last meeting in a boutique Jerusalem café, she was full of beans. She recalled: –

“I bet you don’t realise what one word you have said to me, twice, and which has made a complete difference just recently. As you walked away from our last meeting with words of encouragement, your told me to smile. And then, when I wrote you an email full of my concerns, you repeated the instruction.

I have since internalised the ‘message’. Guess what? I have just recruited 3 new clients. And that was for a project that I had long abandoned.

All that from a smile? By thinking positively, can we really impact on our work (and family) lives?

Step back for a minute. Dr Robert Brooks posted an article, questioning if the process of aging can be influenced by our mindset. He discussed two scientific tests, where groups of elderly people were confined to a closed house, which was transposed to a period from when they were 30-40 years old. Music, food, clothing styles of the past.

The results were amazing. The participants walked out standing taller. The bodies were more supple. In one bizarre incident, somebody threw away their wheelchair, which was no longer required.

This made me think of my friend Avraham Schlissel, a laughter specialist. I few months ago, I attended one of his workshops in Jerusalem, twenty people nervously wondering what they were in for. Absolutely amazing! Over an hour he asked and encouraged people to slightly adjust the way they addressed each other – in teams, in twosomes, or to the whole group . By the end, we were all on the floor in fits of hysteria, taking away ‘something positive’, which we could use elsewhere.

We are surrounded by negative influences and horrendous graphic pictures in the news. By contrast, it would seem that if we could allow more happiness into our lives, it is not just that we will feel better. We could perform so much better at work. Now is that not worth investing some time and thought to?

24 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

From 2003 to 2013, Israel’s GNP effectively doubled. An amazing stat by any standards. Yet, almost suddenly, the economic weather ahead does seem so clement. In the third quarter of 2014, the economy failed to grow for the first time in five years. Fitch has downgraded Israel’s financial outlook to “stable”, although not adjusting its credit rating.

So what seems to be going wrong? Blame the war with Hamas – certainly during three key summer months, businesses in the south of the country reported a downturn by around 30%. Blame the global downturn, and Israel is very dependent on export markets for its high-tech exports. Blame the continuing restrictive practices in certain key areas such as operation of the sea ports or fruit-vegetable distribution.

There is another, more intricate reason .

During much of the decade of success, the current Prime Minister, Benjamin Netanyahu, was very influential in guiding economic policy. One of his previous positions was that of Finance Minister. Love him or hate him, Bibi, as he is known locally, has been a key feature in the rise of the Israeli economy. Even the credit crisis of 2008-9 and wars with Lebanon did not significantly disturb the positive trends on the graphs.

Looking ahead, all is not doom and gloom. The economy is slowing down, but not in recession. The new revenues from off-shore gas supplies are beginning to come into play. Israel is a major player in the new sought-after field of preventing cyber attacks.

Unfortunately, it appears that the architect of this triumph may lack the skills to drive the economy towards the next stage. There are no serious plans to prioritise tackling structural problems – ports, lack of competition in the banking sector, etc. The government has no unified policy to redefine the housing market, which remains on the crust of a dangerous bubble. And the budget for 2015 is showing signs of not adding up. If correct, the erosion of fiscal care could immediately undermine Israel’s international credit rating.

This is where Bibi should be leading. Today he is absent. Tomorrow? The question is difficult to contemplate, let alone answer.

There remain many good economic stats. Unemployment has barely budged from the 6-6.5% level. Exports have held up, despite the summer war with Hamas. Conglomerates continue to seek to enter the Israeli retail market and set up r&d centres.

However, it is not a given that this momentum will remain in place. If Israel wants a further ten years of economic progress, Netanyahu needs to act. That does not mean a glossy speech, replete with clever rhetoric for his electorate. Israelis and the oversees business community are seeking firm targeted policies that will create new wealth in the Holy Land. Should they hold their breath?

21 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

This week’s slaughter in a Jerusalem synagogue has focused international media attention on the pain of those who suffer as a result of Palestinian violence. As I explained in my previous blog, there is alternative side to Israel, a society that rarely hits the news reports.

Last time out I concentrated on Israel’s economy, how it is improving the lives of billions globally. Here, I am venturing into local society. This is not to feature the photos of those Palestinians who handed out sweets after the murderous event. Nor is it a look at how Palestinians falsified import licenses, attempting to smuggle in weapons under the guise of Christmas decorations.

Item One: The massacre itself was stopped by a policeman from the Druze community, who later died of his wounds. At his funeral, attended by the president of Israel, the Sephardi Chief Rabbi could be seen shaking hands and commiserating with leaders of the Druze and other ethnic communities.

Item Two: Enter Tel Aviv and you will readily see that this pluralism is no one-off incident. Located on the Mediterranean Sea, it was recently voted the second most-sexiest city in the world. If you find your way to the tourist website, with it listing of pubs and clubs, you will readily understand why.

Item Three: In the same month, Tel Aviv picked up an award as the ‘world’s smartest city’. The primary citation was the installation of free WiFi for all. Simply no restrictions.

Item Four: Jerusalem should not feel left out. It recently hosted a flash mob, just outside the gates of the Old City. What greater way to demonstrate freedom of expression. Next week, Slovak cycling star, Peter Segan, will be holding master classes around Jerusalem.

Item Five: Be it the Rolling Stones, who turned up this June, the Lord of the Dance troupe due next month, impending visits from OneRepublic, Backstreet Boys, James Blunt et al, Israel has a ready place on the stage for top performing international artists.

I could go on, but I want to bring in the impressions of two travelling Italian business men. They had half a day off during a hectic schedule this week in Israel. Their host told me how he had dropped them near the Old City of Jerusalem and let them stroll by themselves. To paraphrase their conclusions: “Wow, our press never reports just how beautiful and calm it is here in the Holy Land.”

19 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Yesterday’s racist murder of Israelis and a Druze policeman in Jerusalem by two Palestinians has captured world media headlines. Many in Israel have concentrated on the lack of professional standards, demonstrated by the BBC, CNN and others, as well as the whimppish condemnation by President Abbas.

What concerns me is that the noise covers up another side of Israel – an Israel that represents the continuous strive for economic progress and pluralism. So, as five families mourn, several Palestinian villages gloat and journalists scramble for new information, here are some stories that have fallen off the edge of the battle field in the social media war.

Today, I will concentrate on the economy and social issues.

Microsoft in Israel: Microsoft has a strong r&d presence in the Holy Land. It is also active in empowering new start-ups. For example, the CEO in Israel, Yoram Ya’acovi, this week gave a lecture to the multi-ethnic incubator in Nazereth. It should also be noted that a significant of the Business Intelligence surrounding the ‘Cortana’ element in Windows 10 was developed in Herzylia.

Time Magazine – Israeli technology: Outbrain is an Israeli content recommendation company’s solutions. Its capability points readers on the internet towards interesting articles. Time Inc., America’s largest magazine publisher, has signed up for Outbrain’s package, which is expected to deliver an extra US$100m of digital revenue of the next few years.

Intel: Intel is about to set up its fourth factory in Israel. Aside from chip production, it is also invests in new research. MICA, its new electronic trendy wrist gadget, has been developed in Herzylia and is soon to hit shops around the globe.

Yale Locks: Yale is a large conglomerate that has dominated the international lock market for decades. Based in Sweden, not noted for its support of Israel recently, the company has been reported in the Hebrew press as looking to create a strong presence in Israel. The aim is to create 40 small outlets within the mega stores of Home Centre, which will generate sales of around 100 million nis (US$25m) by 2017.

American Eagle: This international clothing powerhouse has been operating in Israel for about two years. The franchise is managed by Fox, which dominates the local clothing market. Today’s financial newspapers contain reports that AE is so pleased with the results to date that it is building a platform to invest directly in Fox.

Just five positive stories about Israel that the international media does not report. I will develop this theme in my next blog.

16 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

If a country has just gone through a war and is engaged in a global economy in the midst of a downturn, then surely we can expect that its export performance will be gloomy? Not so Israel.

The latest financial stats from Jerusalem encouraged this newspaper headline: “Despite Gaza war, ……the Israel Export Institute reported a 4.5% increase in overseas sales…” Further, as the shekel has depreciated around 12% in recent months, exporters are experiencing a field day of growth.

As ever, Israel’s exports are dominated by three key sectors: cut diamonds, defense and high-tech. Industrial exports, excluding diamonds, were up nearly 15% in the last quarter, a significant improvement from the second quarter of 2014. Even more encouraging, there has been no parallel rise in imports. Thus, Israel’s debt to the world has shrunk.

One interesting fact that has come to light is that ten companies now make up 50% of the country’s total exports. Less than a decade ago in 2007, that figure was barely 36%. A further analysis reveals two interesting comments:

A) In the same period, exports as a whole grew 34%. However, if you take out these same companies, the growth factor was a bare 55.

B) Six of the ten companies are “Israeli born”, such as Teva (pharma sector) and Raphael (defense). The other four are multinationals – Intel, HP, Philips and General Electric. For example, it is well-known that Intel’s past, current and next generation of chips were developed in the Holy Land, No wonder, the company is about to open up a fourth plant.

So Israel’s exports continue to move ahead, dragging the economy with it. And the rest of the world? Well, clearly despite the country’s detractors, it too is increasingly dependent on Israeli brawn power.

14 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Fact No 1: Using commerce, specifically high-tech, to integrate diverse parts of society is nothing new.
Fact No 2: Israel has a successful high-tech / start up model.
Fact No 3: Israel is not short of social tensions – geopolitical strains, religious-secular divides to name but two.

So can Israel find innovative ways to integrate non-Jews, roughly 25% of society, into its powerful high-tech sector?

Now we know that Israeli high-tech is highly sought after. Just this week, Microsoft has plunged a further US$200m on investment into the Holy Land, purchasing the app Aorato. We also know that Intel, Siemens, and at least a further 250 international tech giants have R&D centres in the country. And it would be a fair bet that most of these places are staffed and run by Jews.

So how does the Start-up Nation ensure that all ethnic backgrounds can have a fair crack at this tempting road to new wealth?

Bloomberg recently posted an article describing the imperative need for Israel to go beyond established recruitment drives. There are simply not enough new engineers and software architects to fill the vacant positions.

Only one in five of Israeli Arabs with a computer science degree works in the field, and a new government program is trying to change that. As part of a push to add 300,000 jobs in the Israeli Arab sector by 2020, the Ministry of Economy has budgeted more than 40 million shekels ($10.5 million) over the next three years to integrate one of the country’s fastest-growing populations into its most promising industry.

A newspaper from Abu Dhabi (ironically?) picked up on this theme. The National discussed intervention and integration into Israeli high-tech by Muslims. Consider that less than a decade ago, there were estimated to be only 350 Arab engineers working in the sector.

Today of the 100,000 software developers in Israel 2,000 are Arabs. In Nazareth there are 600 Arab software developers when there had been only 40 in 2008, according to figures from Tsofen, a non-profit organisation whose mission is to promote the integration of Israel’s Arab citizens into the high-tech industry.

Nazareth is a city that has an incredibly challenging mix, comprising of Jewish, Christian and Muslim neighbourhoods, often intertwined. Despite periods of stress, be it this month or back in 2000, there are on-going successful attempts to provide services available for all. A classic example is a new centre to help abused children.

Similarly, the local business incubator has a healthy range of programmes to enhance integration. A recent ‘make-a-thon’ competition saw around 100 developers and programmers, both Arabs and Jews, work for 36 hours straight to develop apps and software.

Life is not perfect. I am aware that of one Israeli exporter was seeking this Autumn a contract with a potential client in a large Western economy. The CEO of the prospect demanded that the Israeli firm declare on its website its openness to full integration. Strangely, that same prospect does not have a similar policy on its own website. Nor does it seem to demand the same standards from suppliers in other countries.

And, what the prospect failed to admit is that his own country can also be accused of failing re integration……….as does 200 other countries.

What makes Israel unique in this instance is that few places in the world have to cope with the rich and numerous conflicting social issues, which originate both internally and externally. Jerusalem continues to look for new ways to rise to those demands for the benefit of all.

12 November 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Several times over the past few days I have asked my own clients who they intend to target. What is the actual market? And the answers have tended to be very generic in tone: ‘people from abroad’, ‘those with money’, ‘youngsters’, etc.

And when I ask for a drill down or explanation of what each phrase means, I am greeted with a blank stare and a nervous or childish shrug of the shoulders. Because what has sounded commercially brilliant has not been thought through sufficiently.

For example, let us assume that you want to focus on those people, who are comfortably off. Interesting, but where are they located, physically? Can they be found on social media? What is the age group? Each answer will help to direct you towards formulating your eventual strategy.

These specifics are not necessarily easy for everyone to grab hold of. Not only that, they require validation. That means you will need to find a way to put your product or service in front of a group of potential clients and ask for their opinion.

For example, there is a story of a relatively new humous factory in Nazereth, whose first ton of mix was dumped on the tongues of ordinary (and hungry) tasters. I recently met up with a customer in Jerusalem who wanted to approach an overseas market. I forced him to consider which country, city, socio-economic grouping and much more. Within minutes, he began to appreciate why his advertising to date had not delivered the desired results.

Knowing your client is not a simple art to master. However, this does not allow you to ignore the issue. If you palm it off with sound-nice analyses, this lack of meaning will be converted into an eventual revenue stream that will leave your bank account lacking.

28 October 2014

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Categories: Afternoon Tea in Jerusalem, Israel

Israel has a history of sending successful ‘medical SWAT’ teams to disaster zones. For example, it was the first country to set up a field surgery in Haiti. And now three teams are being dispatched from the Holy Land in order the fight the Ebola epidemic.

However, the Israeli contribution to combatting Ebola may turn out to be far more effective than just sending aboard an airplane some top medics and a whole load of equipment

POINT ONE: Israel’s CollPlant has strong expertise in preparing vaccines from tobacco, which is seen as a key to the treatment to Ebola. They appear to be one of the few companies with an ability to mass produce an antidote, although the results of such drugs are still mixed.

POINT TWO: Argaman, based in Jerusalem, is manufacturing a set of fabrics that can used in hospitals: Sheets, clothing attire, socks, etc – by using Argaman products, infection rates have dropped by tens of percentage points in trials. At least one NGO operating in the Ebola region has approached the CEO of Argaman to consider how such products could protect their employees in the field.

POINT THREE: SYS Technologies near Haifa, Israel, has begun to send special sterile tents to Liberia and other countries in the region. The tents can be used as either field operating surgical units or sterile isolation areas. This latter issue is critical, when one considers that there is yet to be prescribed a comprehensive vaccine. So, it is essential to ensure that any person suspected of having the disease can be set aside effectively from the rest of the surrounding population and then monitored effectively.

If you follow Israel this week on CNN, BBC or SKY, the country comes across as a militaristic, uncaring society, determined to punish Palestinians. And yet there is an old phrase that ‘actions speak louder than words’. On the issue of Ebola, Israel is acting way beyond what any other Middle Eastern country is doing and even beyond what most fellow members of the OECD are providing. So why is the world so determined to silence these holy voices of hope and play to rhetoric of distrust?

25 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

“How long will it take me to succeed in business”, I am frequently asked. And they quickly add the next line. “You are a business mentor. So you should know”.

Um, er, well… How do I start to explain that it depends on a million and one factors, not all of them in the control of the intrepid entrepreneur. What is the vision? Have you established who is the buying customer? What resources are required and what is available? Budget? Cash flow? Competition? Commercial environment? Location? And so the list goes on.

Now a mentor or coach should be able to provide structure to these issues. Yet just recently, I was invited to help with an alternative approach.

“Lean startup machine” is an exciting global organization that organises 3-day-long workshops that allow individuals to test in real-time just how successful their potential enterprise may become. Based on the catch line ‘fail fast, succeed faster’, participants are taught to identify the clientele, to test the concept by going out on to the street, and then to reconfirm previously accepted assumptions.

Last week, the holy city of Jerusalem hosted such an event, under the dynamic direction of Nadav Lankin. There were about 14 teams, who powered their way to creating solutions for the office, delegates to conferences, drivers wanting a place to park and many other situations. Days were long. The atmosphere was frequently absorbing. The mentors learnt, along with the participants.

Does such a rapid approach work for all? Absolutely not. There are those who just cannot react quickly. There are businesses, such as biotech, that need to be crafted. And others demand renovations. However, the lean machine concept does allow you to validate much quicker than conventional text books may have you think. For example?

Well, one of my clients has been evaluating a thrilling vision that combines production with education. He started to put together large budgets over a relatively long time span. Suddenly, one day, ‘he got it’. He walked in and said very proudly: “All I need to do is set up a limited manufacturing scheme and test if there is demand. If yes, then I can ask others to risk more capital”. Absolutely, and he is now urgently seeking a location and in order to launch within a month.

Another customer has been pondering for some time how to set up a specific service. But how, and will it triumph? Eventually, I encouraged him to turn to others who had succeeded in the same industry to find out if there is a specific model to follow. The advice was simple and fairly uniform: ‘Get out there and meet your customer. Do not sit around, building up meaningless strategies.’ this coming week should see some breakthroughs.

There is rarely a short route to success. Most have to graft towards growth. However, a lean approach can cut out much of the initial deliberations, which are sometimes simply a waste of time and resources.

20 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Every month, I have the opportunity to meet dozens of people, each locked up in his or her own business environment. And it is amazing to hear how often the phrase “I can’t” crops up.

There are many variations on a theme. I can’t or I don’t think I should go there or no way or – and this when I know that I have touched a very raw nerve – the client starts to complain about me to a higher authority.

I read today a blog describing phrases that Navy SEAL’s do not accept. Number one on the list is “I can’t do that”. According to the author, “if somebody had said this in the team , he would’ve found himself cold, wet and duct taped.”

I am not a member of any army crack unit. So my approach as a business coach is somewhat different. For me, the “I can’t trigger” is usual a knee-jerk response. It relates back to something totally unrelated, maybe going years back. For example?

Well take a task as basic as ‘cold calling’. This requires a person to reach out by phone (usually) or even by email to others they do not know and then try to engage them in a commercial conversation. Nothing complex here. Yet many a person finds this daunting, even nerve-racking! They procrastinate and often simply never get round to the mission. In other words, they believe that they cannot…without even trying.

Why? Well the reasons can be many, including subconscious shouting in the ear from parents, still echoing after the years have gone by. The point is that the task led to an “I can’t” response.

There are many solutions, However, I want to point my readers in the direction of a quote attributed to David Ben Gurion. Starting off his career as farm labourer, he went on to become a charismatic Prime Minister of Israel, triumphantly and against the odds taking the country through two wars.

“Everything is impossible until somebody does it”.

17 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Last week, the international community pledged US$5.4 billion dollars in order to support the estimated 1.8 million people of Gaza in the aftermath of the war with Israel.

A humongous sum, one commentator has tried to give the dollars a sense of proportion. Michael Freund observed that the release of the Ebola plague has barely justified approximately US$1.0 billion of contributions. Millions of Syrians and other human refugee problems around the globe are also valued less highly.

It appears that while John Kerry is still looking for an extra US$200 million to combat Ebola, Qatar has committed US$1 billion to Gaza. Similarly, “the US pledged $212m (£132m) in new aid, while the United Arab Emirates and Turkey both committed $200m (£124m). European Union foreign policy chief Catherine Ashton said donations from member states would reach $568m (£353m).” etc , etc.

Let me clear, whether you blame the bombing of the Israeli air force or the fact that Hamas booby trapped streets of housing, at least 5% of Gaza residential buildings were destroyed. Hundreds of thousands require new housing. The issue is not the cause. At a time when Europe is facing another recession, the question is can the placements of the new donations be accounted for?

The original request from President Abbas was for a mere US$4.0 billion. However, historically donors, particularly from the Middle East, have rarely delivered in full. And as the Financial Times pointed out, a significant amount will seep out to the growing class of corrupt Gaza millionaires.

That stated, there are four key ways in which the sums can be transferred. And each methodology reveals a disturbing lack of transparency for the generous donors.

A) Palestinian Authority (PA). Except for brief periods under Prime Minister Fayyad, the PA has never declared fully their financial accounts. When I last checked the pages of the Palestinian Ministry of Finance, the links to the detailed statements would not open out. Furthermore, the PA does not govern Gaza, which is run by Hamas, a known supporter of ISIL.

B) UNRWA: Despite the name, this organisation is not supervised directly by the UN. And even though its annual budget breaches the one billion dollar level, it has no external and independent auditor! During the Israel-Hamas hostilities, UNRWA was forced to admit that its facilities are used by terrorists – exposing the abuse of Western taxpayers’ contributions.

C) NGOs: Increasingly since 2001, NGOs have become to be seen as a ‘kosher’ mechanism for transferring money to the Palestinians. While the aim here has been noble, several such charities have been exposed by NGO Monitor for operating in the political sphere rather than impacting on the lives of ordinary Palestinians. For example, monies transferred by the royal Swedish government are utilised to denigrate Israel, supposedly a friend of the monarchy, rather than to benefit Palestinian society.

D) PEGASE: Created by the European Union in 2008, PEGASE seeks to ensure that Brussels’ support for Palestinians ends up at designated targets. Stephan Fule is the European Commissioner responsible for enlargement and neighbourhood policy. In response to a question from Lynn Boylan MEP, he reported last week how “Aid to Gaza is part of the overall package of cooperation with Palestine and no separate ‘accounting’ is kept. However, for the period 2007-2013, our estimate is that:”

1) For PEGASE, payments to beneficiaries in Gaza correspond to 1/3 of the allocations for civil servants and pensioners and 2/3 of the amount for Vulnerable Palestinian Families. The overall contributions for the 2007-2013 period amounts to circa EUR 1.5 billion

ii) In addition,

For UNRWA, aid to Gaza targets 1.2 million refugees representing 1/4 of the total refugees assisted by the Agency. The total EU contribution to UNRWA for the referred period has been around EUR 950 million;

Infrastructure projects amount to EUR 23 million and projects for the private sector to over EUR 30 million;

Humanitarian assistance amounted to over EUR 225 million, including 74 million to UNRWA

Note that the figures are “approximately”. So the EU admits that it has no ability to add up how much goes out to the Palestinians.

Note that “civil servants ….. and 2/3 of the amount for Vulnerable Palestinian Families” is ‘Newspeak’. for Hamas officials and families of convicted terrorist.

And thus note why it is not a surprise that in December of 2013, the European Court of Auditors could not substantiate that donations to the Palestinians had been used properly.

Bottom line: However much of the 5.4 billion is transferred, very considerably less will be received or felt by the average person in downtown Gaza City!

So what will make a difference to the lives of ordinary citizens in Gaza? And does Gaza really need US$5.4 billion, an amount bigger than the economies of over 50 countries?

Well, Israel has been criticised for operating a closed border with Gaza. Actually, it is the Egyptian side, which is sealed. Israel lets in hundreds of trucks of humanitarian supplies most days a week, even during a war. (By the way, it is Qatar has been financing these transports, and thus their above contributions are nothing new.)

Ban Ki-Moon, UN Secretary General, delivered a speech at the Cairo donors’ conference, claiming that the fault of the conflict in Gaza lay in Israel’s occupation. Yet, Israel separated itself from Gaza back in 2005. Everyone does agree upon is that the should be greater freedom of movement at the border crossings, and President Rivlin of Israel echoed this in an address to Ban.

What is the missing factor? For years, Hamas invested billions in building up a war machine against Israel. While never able to defeat Jerusalem, the dynamic and nimble infrastructure of tunnels and rockets threatened, maimed and killed. None of this investment created wealth, happiness and prosperity for its own people….except the oligarchy, as the Financial Times described. If Hamas was to think in terms of mutual peace, now that is a concept of near immeasurable value.

The world has yet to learn how to fund and to repeal the threat of Ebola, Islamic terror and many other problems. Regarding Gaza, US$5.4 billion appears to be a secure number for the peace of mind of global leaders. It allow them to believe that they can achieve a reduction in poverty. Meanwhile, the plague of Hamas remains free to build up its resistance.

13 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

“I look forward to my sessions with you. You jolt me forward.”

Thus uttered a client of mine a few months back. And while this may sound like showing off, it actually sums up much of what business coaching is all about.

The question often arises, even in social conversation – what is a business coach? A great business coach need not necessarily be an expert in his client’s field of commerce. However, he or she will possess the tools, character and experience to ask the right questions, probe away at those subjects that have been subconsciously ignored, and empower the client or team to move ahead independently.

Effective business mentoring generally treks over five steps. Personally, when I meet a new potential customer, I explain how I will encourage and how I will cajole them to:

1) Identify their vision. This involves setting out the vision within clear and understandable boundaries. What needs to be done by when and why.

2) Identify those issues that are preventing progress within the current environment

3) Verify that they are prepared to change, if required

4) Establish a road map towards growth, with a reasonable timeline

5) Confirm that they are able to follow up and reach out to their dreams and ultimate success.

This case study illustrates what I mean. I was asked to help prepare a loan application of a relatively significant amount. Nothing unusual, you may think. However, the client was a new immigrant to Israel, trying to copy a business model from overseas.

The questionnaire was a pain in the whatever – never mind that my client did not even understand the language. The bottom line was that the form was structured in a manner that it forced my client to think about what he was going to do, what resources he needed (in detail), why, how much, and how he was going to execute the strategy. And it proved my job to wheedle the info out of him.

Interestingly, at one stage, the client almost gave up and was prepared to throw in the towel. This was his way of saying that he was not prepared to change. As I put in the lure of extra money coming available, he saw otherwise.

All customers are different. Sectors of commerce have their own unique tendencies. We all react in unforeseen ways to pressure. that said, time and again, my mentoring resorts to this methodology and it has a high success rate…..which I hope is something for you to consider.

12 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Binyamin Netanyahu has been either the Finance Minister or Prime Minister in 9 of the years since 2003. During this time, even allowing for the global credit crisis, the economy has bounced along at around 4%, an excellent report by most standards.

However, forecasts for both 2014 and 2015 barely rise above 2%. And the budget for next year has been forced to cater for massive defense spending, while not allowing for any tax rises. This has meant a dangerous widening of the deficit. Add in the fact that Europe seems to be heading for a recession, it is unsurprising that few people have confidence in the numbers coming out of Israel’s finance ministry. It appears as if somebody is trying to draw a curtain on Netanyahu’s era of economic triumph.

The strategic and social demands on the government are undeniably heavy this time round. After the war with Gaza, the army needs to replenish its stocks. Response to the threats from Iran and from the northern border must to be financed, now. Communities in the south of the country have been promised vast improvements to the infrastructure. etc, etc.

In parallel, Israel still has to play to the rules of coalitions politics. Thus, Yair Lapid, the Minister of Finance, needs to find the means to support other ministers, who belong to his political party. The education ministry is one such prime candidate for extra sums.

Given all these pressures, is there any spare fat? Actually yes. It is one of those open secrets that not even the whole of the Mossad can cover up.

First, the government should stop protecting the distributors of agricultural produce. For decades, middle men have thrived. They are accustomed to raking in large mark ups, while imports are tariffed out of the market. Who suffers? The consumers, who nedlessly pay thousands of extra shekels every year.

Second, the government should stop protecting public sector corporations, such as the electricity company and the post office. Both are bitterly overstaffed, and the former even allows employees free unlimited power. The latter has seen a fifty percent drop in direct profit in the three years to 2013.

Third, the government should stop empowering …… civil servants. I have several clients, who want to start importing but are smothered out by red tape. I know of a class unique European winery that has sales throughout the continent, but cannot find a way through the paperwork of Israel’s Ministry of Health. Hand in a product for testing to the Institute of Standards and you have to wait an amazingly long 12 weeks. As for any potential manufacturer of food or drink, it is an accepted fact that you have to start production and then seek necessary approvals – in other words, you have to break the law in order to succeed!

With little new to talk about re the Palestinians or Iran, news in Israel has focused this month on the price of basic goods. Why is it cheaper to buy a loaf of bread in England and why can an Israeli-made yogurt (Milky) cost less when purchased in central Berlin?

It is simple. As the case studies above reveal, it is all about vested interests.

Vested interests keep the prices of distribution in Israel high, to the detriment of the consumer. However, these same groups are often the backbone of some the country’s top politicians. Don’t believe me? Look how the tentacles of the port at Ashdod -management and unions – infect the police and local commercial interests, as importers and exporters pay out excessive rates. And why has somebody only just woken up that one trade union official and now member of the Kenesset has been on on-going official leave for the past 15 years?

It is expected of politicians that they enter the profession in order to change what is wrong. This is doubly true of an experienced Prime Minister. In Netanyahu, the country has an officer in the service of the public, who understands economics and has a honest record to protect.

So let’s ask the question: Is Netanyahu too scared of or too beholden towards the various power blocks? Or is he just so cut off and removed from his electorate that he remains content just to slurp his own Milky, whatever it has cost his housekeeping (paid for by the electorate)? Actions not meaningless rhetoric are what are demanded Mr Prime Minister.

3 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

The arena of “brand psychology” is taking on greater and greater importance, and not just in the world of commerce. The fact is that many people associate the concept of branding with cosmetics and foods and banks and well-known international labels. Actually, the subject impacts far wider, including service industries, country promotion, shops, and even individuals repairing tarnished reputations on the internet.

One of the leading global experts is Jonathan Gabay, who has just led a fascinating seminar in Cyprus. The theme very much tied into an article in Forbes by Susan Genelius:

Consumers build brands, not companies. This is a fundamental marketing truth that cannot be denied. Consumers give brands value by developing perceptions and expectations for those brands. Companies enhance the value by delivering consistent brand experiences that consumers can trust.

As the author highlights: Although something may appear to be “needed”, that does not mean the consumer “must” buy it.

This consideration very much applies to companies that I have been working with recently in Jerusalem. For example, one biotech start up has patented a bewildering tech that is set to save thousands of lives globally. However, the environment of the market place may see the company being forced back into its laboratory space. Hospitals will somehow carry on as before. The finances and politics may determine an outcome that ‘wow’ or ‘nice to have’ do not add up to must buy.

The biotech team are thus being forced to evaluate their pitch in order to raise funds. For all the validation of the technology and how it services a clearly identifiable need, how can they justify their brand so that it can be seen as a winner? What will convince the minds of investors, so that they ‘must’ come on board?

This is just one quick case study out of many. What is does is highlight a growing problem for the seller. In a world of sophistication and rapid exchange of information, how can providers convince others that their brand is simple, genuine and effective?

2 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Fact number one: It is no secret that Israel is a world leader in developing mobile apps. The Holyland always has a stong presence at the annual Barcelona conference.

And just look at the news in recent weeks:

TechCrunch has reported that IronSource has raised US$85m to distribute software in the American and Chinese markets.
Intel’s Israeli r&d is leading the high-tech giant into the mobile arena.
The newest Arab incubator in Israel will focus on mobile tech

Handy, Sodyo, Quando are many of the start ups featured at the Mobile 2015 in Tel Aviv yesterday. CallVU, with its strong menu application, picked up yet another award. The list of noteworthies is very extensive.

Fact number two: Utilising the country’s expertise in defense solutions, Israel has quickly become an accepted force in the burgeoning cyber industry. A classic success story is CyberArk and its unique laser-focused solution to protect ‘privileged accounts’. Recently listed on NASDAQ, it is arguably causing more of a splash than Alibaba. The share price has more than doubled.

And while the Chinese interest in the Israeli economy is growing daily, I was wondering how these tech advances would impact on the demonstrators in Hong Kong. Israel is an open democracy, surrounded by existential threats. China, which runs Hong Kong, is a dictatorship hat threatens its neighbours.

A link was provided yesterday by Lacoon, an Israeli cyber company. It uncovered how protesters have been sent a virus via WhatsApp. Known as Xsser, this steals messages and locations. The source has been linked to, but as yet unconfirmed, Chinese authorities.

Last week, the Wall Street Journal exposed the rapidly rising level of Chinese investment in Israeli high-tech. Let us hope that these sums do not infringe on basic human freedoms, even in the investor’s own back yard.

1 October 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

By the time that Hamas and Israel had become locked in hostilities this summer, the boom had long gone out of Gaza’s economy. After two strong years, 2013 saw a 1.5% reduction in growth.

The basic facts are depressing:

Egypt has sealed its border shut, with not a hint of the tons of humanitarian aid that comes in via Israel every week.
Cleaning workers in hospitals are on strike, indicative of labour problems in the dominant public sector.
Thousands of people are trying to flee to abroad, a dangerous process which starts with an investment of around US$2,000.

From what is known, civil servants in Gaza have not been paid for three months. Danny Rubinstein, a leading Israeli commentator, claims that the money has arrived in the account of Abu Mazen from his Qatari sponsors. However, the Palestinian president has only paid for those workers in Ramallah, from where he rules.

It does beg the question as to what has happened to the rest of the cash?

A second issue of concern is what will happen at the donors’ conference, which is due to meet in Cairo next week. In order to rehouse hundreds of thousands and to create new commercial projects, billions of dollars are sought. Assumedly, much verbal emphasis will be invested in blaming Israel for border restrictions. I believe that the average Palestinian deserves an answer to a more important question: Who is going to ensure that these vast quantities of financial largesse will be monitored transparently, so that the bottom line is a better Gaza?

Hamas cannot be trusted. Last week, it even resorted to robbing The Bank of Palestine in order to finance immediate needs.
UNRWA’s neutrality has also been severely compromised. The recent war showed that Hamas has abused UNRWA schooling facilities, where the teaching unions have become politicised and the buildings were used for launching Kassam rockets against Israeli civilians.

It is appropriate to recall here that back in December 2013, the European Court of Auditors admitted that it cannot vouch for where all the billions of Euro dollars in aid have disappeared to over the years.

In a month when the world is waking up to ISIS, Russia is squeezing out Ukrainian liberty and China is poised to crush thousands of students in Hong Kong, who cares? So what if a few billions goes missing in yet another impoverished part of the Middle East. After all, last month 500 Palestinians were drowned and the world’s media barely let forth a polite cough.

Hamas officials have been noticeably quiet about this horrific tragedy. Meanwhile, they must have made a relative fortune from this new-found export in human traffic. And that is the point. Huge sums continue to flow around for a select elite in Gaza, but it is not the truth that is swept up in the wash.

29 September 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

It seems that the Israeli economy will only grow by 2% in 2014, and by not much more in 2015. That is way down on the customary 3-4% figures that the Holy land has witnessed for much of the past decade. And it barely covers the increase in population.

Gloomy stats seem to be everywhere. Unemployment has risen from 5.9% to 6.4% in the past year. Exports have stagnated. Interest rates are approaching zero. The budget deficit is set to bulge to 3.4% next year. About the only thing driving growth is private consumption, and that too is faltering.

Israel’s success, led by high-tech and entrepreneurship and immigration, appears to have come to a painful halt. Has the light gone out of the dream?

Well not quite. It is known that if you want to see how so-called financial experts view the future, look at stock market movements. So there must be a reason that the Tel Aviv Exchange has risen 23% over the past 12 months to a new high.

Well one reason is the ‘economic miracle of Israel’s gas fields’. These are set to be a major game changer, pumping hundreds of billions of dollars into the economy over the next few decades. The revenues are set to fund a transformation of the country’s infrastructure.

A second factor is that Israeli society appears to have an ‘inbuilt dynamic’ that allows the country to adapt rapidly to the next high-tech phase. From internet to bio to mobiles to nano to clean, and now on to cyber tech. For example, this year, Israeli companies have shown that they are leaders in the new sector.

A final point to consider is the recent war with Hamas in Gaza. Yes, the military is demanding six billion shekels to replace stocks. And businesses in the south of the country were reporting a 30-40% drop in sales during the usually busy summer months. However, Israel’s economy has a consistent history in bouncing back after campaigns. This can be seen in the first reports that indicate how consumer spending has leaped over the period of the Jewish New Year.

So the news for global financial analysts is the Israel’s economy may be growing at a slower pace than in the past and the current budget discussion amongst bickering politicians may look very professional to an outsider. However, the fundamentals of the economy are not just secure. Israel is preparing for the next wave of commercial growth.

23 September 2014

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Categories: Afternoon Tea in Jerusalem, Business

‘Why every growing business needs a mentor’ is the shout from a very interesting blog I came across today.

Alternatively, would it not be wonderful if all company owners, small or large, could install a magical machine in their office that would tell them if they were heading for trouble. They would simply enter the results to a few questions. And many of these challenges would apply to people at concept stage, as well as fully established concerns. So what horror probes I am asking you – a CEO or senior manager or even an entrepreneur – to face up to?

The business model: So many people I come across do not have a clear, detailed and time-framed concept of just what they are going to sell and how over the next twelve months. Without this formula, however brilliant your product or your management skills, you may be left drifting in the market place. Do you know precisely how you will be making sales over the coming year and how this strategy can be justified?

A sales’ comparison: Go back at least two years. What is the trend in the sales chart? Now be honest with yourself. If you were to show these stats to a trusted friend or theoretical investor, would they be as positive as you……..and if not, why not?

The profit margin: I come across a lot of organisations which can never fathom out why the accountant is reporting a profit, which indicates more income tax payments, yet the bank account shows a large red sign. If you are already there, have you ever fully understood the cause for this discrepancy?

Work hours: We all know people that simply invest too much time into their commercial activities. Some justify it through results in the bottom line or as a ‘temporary thingy’. Maybe. On the other hand, there are also those who are just hanging on. They have convinced themselves that just by being there, everything will be just fine. And that would never happen to you, no?

Your mood: Bored? Tired? Calling up colleagues and suppliers over petty issues? Should this state of mind not be telling you that something is out of place? Why are you investing so much time into matters that do not result in extra revenue?

The mood of your colleagues / employees: I always fear the day when people stop coming up to me and suggesting new ideas. Even if their ‘what if…’ is off the radar, the approach shows commitment and motivation, an effort to improve matters. Look around you. What is the level of innovation in your workspace?

Your suppliers: What I just wrote about your staff can also apply to your suppliers. Are they encouraging you to consider new ways to use their services or have they just given up on you?

Task list: We all have one. However, does your list simply repeat itself from day to day and from week to week? If so, what does this represent about progress?

Let me return to my wonder machine. You feed in your answers, guess what message it will churn out? To but it bluntly, something needs to change, and this will be a great opportunity to call in a business mentor.

21 September 2014

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Categories: Afternoon Tea in Jerusalem, Business, Israel

I will never forget looking at some photos of a neighbour of mine. She was being swung around in midair by a giant crane. The smile on her face showed that she was having the time of his life. Scary? She was sitting next to her young kids, who could not have had a bigger thrill.

I thought she was mad. I would (could?) never do that, especially as I have to protect my heritage, as somebody who grew up in the middle classes of staid London. As for my subject, she is a very successful serial entrepreneur in Israel.

And this episode is what sums up one of the few themes that link such people all over the world. They challenge the barriers of normality that have been established by others, who often did not know better.

As I type, I recall that I may have already mentioned this anecdote in a previous blog. In any event, I was reminded about it recently by a picture going round Facebook at the moment and which had already released been by National Geographic. Just looking at this link gives me the creeps, but for others it is a relish of going beyond the acceptable. A real cliff edge of a montage.

When I mentor people, I frequently face up to those clients who ask “what else can I do”. My task is to make them realise that what may appear to them to be impossible can actually be achieved. It is doable via a complete rethink.

This week, Jews around the world celebrate their New Year. As with similar festivities in other religions, this is an event that combines joy with an opportunity to ask for forgiveness. It is a celebration that also demands from us to examine our responsibilities and to think out new approaches.

This may sound cute, but this festival is when all adults have a chance to become entrepreneurs (in our communities). We can learn to understand our individual challenges in life but with a thrill and a smile.

19 September 2014

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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Two very separate yet related items came my way within 24 hours of each other.

First, I came across an article, explaining “5 ways to host better meetings“. The next day, a mentoring client in Jerusalem asked was describing to me how she had prepared for meeting potential customers later on in the week. I realized that she had been following classic texts and blog posts, but had not thought beyond ‘the immediate’ issues. Disaster as looming and something had to be done, pronto.

It is all very well having your notes ready and preparing a few jokes. That makes us look and sound good, but a meeting should have a purpose. We need to come out of it, having moved pertinent issues forward.

So here are three practical, seemingly obvious suggestions that can help to make a difference, and do so at one of the key junctions of a get-together….the beginning.

First, know who will be present. Please reread that statement. “Know” includes:

Discover the full names of the participants and how to pronounce them
Learn some of their likes and dislikes. If you are unfamiliar with their background, call on Mr Google
Research if they been in similar situations before and rejected offers you are considering to propose.

As I said, obvious, and yet you would not believe how many people I come across fail to invest 10 minutes in such actions. All these actions can stop you making some basic faux pas and help to raise the level of your professionalism.

Second, if the meet up is to take place outside your territory, you may need to check out the site in advance. For example, if they have chosen a coffee bar, why and what are the drawbacks to the establishment? If you are going to look at a property, reconnoiter the place before hand.

Third, and most important, when you finally greet the person, keep your eyes open. There will be something about them – an item of clothing, a photo on their desk, a newspaper article nearby – which will reveal what is close to their hearts. Use that knowledge in ‘the icebreaker’, when you start the first part of your conversation with them. They will be delighted by your interest and concern. In one safe move, you have won them over.

Naturally, you do not have to take these points into account, but why start off a meeting on the back foot for lack of effort?

Pages

Can a smile really help improve your business?

Israel’s success – Netanyahu’s stress

What really happens in Israel – Part 2

What really happens in Israel – part 1

Israel’s exports, defying the laws of economic gravity?

Integrating hightech into society: Israeli case study

“Know your client” encourages the business mentor

How the answer to Ebola probably lies in Jerusalem.

How to succeed quickly in business

The client said “I can’t” and the business mentor responded….

US$1 billion or US$5.4 billion – what is worth more?

How to describe business coaching

Israel’s economy – the saga of a scared Prime Minister

The ‘needs and musts’ of building a brand message

Mobile to cyber – Israel to China

Gaza economy: Money flowing but to whom

The dream of Israel’s miracle economy is……

8 tell-tale signs that your business idea has stagnated

Entrepreneurship, the challenge, the religion

3 simple tips when preparing for your next meeting

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