Afternoon Tea in Jerusalem Archives - Page 35 of 75 - Michael Horesh Business Coach and Mentor

5 July 2014

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

The past week has seen heightened violence between Gaza and Israel. While the timing seems odd, in parallel, the IMF issued its latest survey of the economy under Hamas rule in the territory. Summarising the conclusion, Israel is responsible for a situation of high unemployment and stunted growth.

You cannot fault the logic. Israel does not let workers from Gaza come into Israel. The traffic of goods between the two is carefully monitored. Ergo, Israel is to blame for the demise of the Gaza economy, no?

I did wonder if the IMF wrote similar things about Afghanistan or Iraq – withdraw the troops, which seek to protect the peace, and the economy will boom (sic?).

Leaving sarcasm to one side, jump back a few years and recall how Hamas started out. It was a neighbourhood organisation that provided social services to the poor. It deliberately fed on the nepotism and corruption of the Fatah strongmen led by Mohammed Dahlan. When Hamas violently ousted Fatah from Gaza nearly a decade ago, there was little crying amongst the locals.

Initially, the Hamas economy prospered. While the commercially successful greenhouses left by Israel became military training bases. Gaza thrived via the tunnel economy. Hamas built them, controlled the contraband, and ran the finances as taught by ‘Professor Al Capone’. Shopping malls opened. Car imports soared. Unemployment began to drop.

So why in July 2014 is Hamas apparently so interested in a fight with Israel? I understand that until Thursday, most of the shelling from Gaza towards Israel came from more fanatical groups like the Islamic Jihad factions.

First, remember that President Sisi of Egypt has spent a year closing down the Sinai entrances to the tunnels. If there were around 300 operating at the time of former President Morsi, today barely a dozen are left. There goes the tax collection.

Power supplies, 30% of which comes via Egypt and much of the rest was financed by Qatar. Well, the money from the Gulf ran out some time ago. This week, the region was almost plunged into darkness before President Abbas assured Israel that it would be paid for new fuel supplies.

As for wages, there are reports that 50,000 Hamas workers have not been paid their salaries for about seven months. Given the size of the average family, that lack of liquidity probably impacts on about a third of the Gaza population.

It is difficult to argue that these financial restrictions apply to ‘those at the top’. Corruption and the siphoning off of foreign aid remains endemic. The granddaughter of the Hamas Prime Minister was treated in an Israeli hospital. There are estimated to be over 1,700 millionaires in the area.

So, it appears that the fizz has gone out of the Gaza economic dream. And this deeply restricts the ability of Hamas to care for the poor, its home constituency. When you factor in the growing influence of the Islamic Jihad and Salafists, what is left for the local leadership to do, but to attack Israel?

The Hamas military machine probably includes tens of thousands of trained soldiers. It is assessed that the arsenal contains tens of thousands of Kassam missiles. In other words, Hamas has invested singularly and heavily in military prowess as opposed to the development of human capital.

The IMF targeted Israel for Gaza’s economic woes. Yet have we not just found the missing billions that the IMF has failed to write about……………and why are these brilliant economists so quiet about it?

4 July 2014

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I love business mentoring. It is fun and can be very rewarding, as you watch your client progress. In parallel, you often find opportunities to expand your own horizons.

One such incident happened yesterday, sitting in central Jerusalem with the owner of a small chain of shops. The company is commencing a programme of restructuring, and this process allows for a new logo and additional lines of sales.

The CFO asked for my opinion on a set of posters that had been drawn up. This prompted a discussion, and many constructive points were delivered by himself and the marketing director. Then we were joined by a webmaster, who I had found for my client. The gentleman, we shall call him David, has already delivered an excellent service for another customer.

Here, David was invited to share his thoughts on the suggested posters and how they would feed in to a new website.

David’s comments were incisive and of value to others. In parallel to the message, he concentrated on the colours. He observed how each one plays to a different audience. And whilst the combination displayed in the pilot posters were interesting, they were totally unsuitable for this specific area of commerce. Simply put – nice set up, that would not work here. Ouch!

Both my client and I listened attentively. It was time for a rethink. And yet the ‘Jerusalem Syndrome’ can operate in the most unexpected manner. Checking my emails just a few hours later, I cam across this most pertinent of blogs: “How to use the psychology of colours when marketing“.

The article makes for annoying reading, as you come to realise how multinationals exploit us. For example, red is for energy and urgency. On the other hand, green represents tranquility and harmony. Blue is preferred by the menfolk, and so on.

My conclusion. Next time you come up with your own logo and you look for opinions from friends, you make also want to have it vetted by a psychologist. Today, many of the best logos are riddled with hidden meanings.

1 July 2014

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Categories: Afternoon Tea in Jerusalem, Business

It is probably just coincidence, but I have had several people recently ask me what is the most appropriate time of the day to carry out their key assignments.

These tasks can vary from writing up a crucial report to client preparation to interviews and beyond. The key point is that they are the ‘something special’ projects, which must be done properly, efficiently and effectively, within a set time span…..or else.

My general advice is to slot in the important tasks at the beginning of the day, whether a person starts work at 7am or 11am. Usually, that is when we are most alert. The morning breakfast and coffee has kicked in. We have shouted at somebody on the way to work. The body is looking to be creative, assuming no parties from the night before.

(As a side issue, this is why many experts now encourage us not to skip breakfast, and ensure that it contains a healthy portion of sugars. We need that new energy to take us through the day. And cheating on the first meal of the day is a pathetically ineffective way to diet.)

The Harvard Business Review discussed the matter of diary-scheduling last week.

You can maximize your productivity by calibrating activities to the right time of day. If a task requires willpower and complex thinking, plan to do it when you are at your most alert. In contrast, if what you’re after is a fresh perspective, use fatigue to your advantage by looking for solutions when your energy drops.

Yes. This is an individual issue. What works for me does not necessarily apply to somebody else. However, I stand by my initial observation about first thing in the day.

However, here is the catch. Many people schedule meetings for the morning. Thus, when it comes to writing up reports afterwards, they are tired, hungry and clock watching. It is this ‘clash of hours’ that as a business coach, I try to make people aware of and thus change their habits. After all, it can only lead to greater productivity and maybe even greater enjoyment in the workplace.

27 June 2014

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My daughter asked me the other day why the Presbyterian Church voted to divest from Israel. The question was pertinent when you think just who is coming to Israel at the moment.

On 19th June, the Hebrew paper “Calcalist” reported that Coca Cola will invest a further US$0.5 m in Israeli start ups. That will make about 10 young companies in total.
A few days later, the German specialty chemicals group Altana announced that it will take a minority stake in Landa Digital Printing to the value of US$135m.
Final, a rather anonymous company from Herzylia that ‘dabbles’ in algo-trading, is rumoured to be considering a buy out offer, valued at US$4 billion, give or take a dollar.
In the past six months, six Israeli companies have raised a combined US$500 million in share offerings in America. Next to join the list will be Cyber-Ark looking to bring in US$75million.

In other words, at a commercial level, 99% of global commercial leaders are ignoring the calls of Presbyterians and their fellow thinkers.

In other walks of life, the pattern is similar. I mentioned earlier this month how Palestinian leaders take advantage of Israel’s medical services. To that commentary, I could add the story about the Palestinian child, treated in Tel Aviv, at the very time when Hamas had cruelly kidnapped three Israeli teenagers.

In the field of music, no BDS fuss blocked the brilliant appearance this month of the Rolling Stones in Tel Aviv. Hip-hop artist Epicc has just spent a week in the Holy Land and released a special clip to celebrate. Ceelo. Green, Neil Young, and Kylie Minogue are a few of the artists booked to feature over the summer months.

I did mention to my daughter that the Presbyterian Church had been hijacked by a powerful anti-semitic minority. We discussed the stupidity of the boycott; for example, HP has been targeted, because its hardware prints the permit entries for Palestinians coming into Israel. We noted that while Israel is the only democratic country in the Middle East, the Church had been deafeningly silent in its condemnation of abuses against Christians in the region.

However you cut it, once you remove the spin of the BDS movement, two items remain. First, its basic traits and demands and targets have disturbingly similarities with Nazi laws of the 1930s. Second, Israel’s drive towards globilisation remains unhalted, thus ironically ensuring that those who hate the country end up benefitting from its capabilities.

19 June 2014

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It is five since Dan Senor and Saul Singer described Israel as a ‘start-up nation’. They analysed how a desert tariff-based economy emerged from bankruptcy in 1986 to become a force on the high-tech scene.

Whether you put the factors down to better governance, improved access to global markets, the impact of ex-army types moving over to industry or otherwise, the question remains if this triumph can continue to repeat itself.

Yesterday, I visited Beersheba. It is nearly a two hour drive from Jerusalem. There are few good hotels. The area is known as where Abraham sojourned, and where the British passed through in 1917. Actually, despite being on the edge of the Negev the city is geographically almost placed in the centre of the country. So what?

In 2014, Beersheba will open an r&d centre, co-sponsored by Lockheed Martin and EMC. In parallel, CyberSpark will offer a new complex for the blossoming cyber industry in Israel. And separately, the Advanced Technologies Park was officially launched this year.

All very encouraging. However, what I saw yesterday on the Ben Gurion University campus in the heart of the city was even more impressive. Innovation 2014 was the fifth annual event of its kind. It was spread out over several buildings. Aside from keynote lectures by reps from IBM, Microsoft etc, there were several hundred presentations from students. Each stand represented another potential breakthrough in its specific field.

Here is just a preliminary list of examples:

Software to help decision-makers understand if an autistic child is suitable for a course.
Numerous solar powered applications
The ability to detect underwater threats
An app to help small businesses manage queue line
Robotic solutions for industry, operating rooms and more

The human sciences were not to be excluded. Projects were exhibited in the tourism, the branding of Bedouin villages, natural cosmetics companies located in the region, and much more. You left with the feeling that almost every other student has an idea and is determined to commercialise it, as soon as possible.

Years ago somebody commented to me that in America, students come up with an idea, stay in-house until they are ready, and then start a company years later. As shown yesterday, blame the hot Middle Eastern sun if you want, the opposite is true in Israel. Israelis run almost irrationally to register their company.

It is arguable which is a better business model. In Israel, around 40% of new businesses do not make it to Year 5. That said, hindsight reveals that this is the approach that helped to launch the amazingly successful ‘start up’ anthem of Senor and Singer. It looks as if it will be around for some time to come.

17 June 2014

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

Last week was a busy one, even by the bewildering standards of the Middle East. Sunni militants (ISIS) launched a violent offensive in Iraq against the government, slaughtering civilians who objected. America and the UK initiated a bizarre rapprochement with Iran. And on Thursday night, three Israeli teenagers were kidnapped, assumedly by Hamas supporters.

Measuring the posts of the international media, the Israeli story is the least important. In fact, SKY News believes that the key crisis in the Holy Land is not the immoral act of the kidnappers, but the inappropriate reaction of the Israeli authorities.

I believe that the reporters have missed a trick. If they were to focus on Israel, they will be able to appreciate with greater clarity what is happening around the oil wells in the sand dunes. Here’s what I mean.

1) Israel’s economy: Despite on-going geopolitical uncertainty, the economy grew by 2.7% in the first quarter of 2014. And yes, that includes increasing trade between Israel and Palestinian firms.

2) Hightech: Israel’s start up economy has not stopped forging new links. Russian billionaire and owner of Chelsea FC Roman Abramovich has just invested $10 million in StoreDot, an Israeli startup developing electronics based on bio-organic materials. A Jerusalem-based company is (ironically?) developing an app to help prevent kidnapping. And CellBuddy is set to create a consumer revolution which should slash the prices of mobile phone calls.

3) Health care: The medical sector is short of cash, doctors, nurses and more. However, it must be doing something correct. Hundreds of Syrian civilians, wounded in the civil war, have been treated in Israeli hospitals. The granddaughter of the Hamas PM has been operated on in a Tel Aviv hospital. Even the wife of Palestinian President is now recuperating in a private clinic near Tel Aviv.

4) Tourism: Only yesterday, Masada, a World Heritage Centre in the desert, rocked to the sounds of La Traviata. Hundreds of tourists flew in especially for the event. Concurrently, the City of Jerusalem is running its annual Light Festival, which spectacularly winds its way around the different ethnic quarters of the Old City.

No country is perfect and that includes Israel. Yet, for all the threats surrounding it and for the morose horror of the kidnapping of the school children, Israel continues to thrive though a policy of inclusion and pluralism where possible. You have to ask: Why is this theme so hidden by the media giants?

The boys have disappeared, feared murdered, and their families are helpless. Unlike the poor girls in Nigeria, Michelle Obama has not published a post in support of the three missing religious Israeli teenagers. Catherine Ashton, EU foreign affair supremo, has yet to find time to comment on the matter.

And what else has been kidnapped? The openness and success of Israeli society, which should be promoted to serve as a light to the Iraqs and Irans of his world. Where has the world media hidden these triumphs and why?

13 June 2014

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Four gentlemen are walking around Jerusalem looking for a business mentor. It almost sounds like an opening line to a long joke.

The truth is the opposite. Over the past 6 weeks, I have become acquainted with four people from the Jerusalem area. I do not believe they know each other. They grew up on three different continents. Their social backgrounds reveal no obvious synergy. Academically, their skills range from the ultra brainy down to school drop out. Two are quiet types and two will not stop interrupting.

On the commercial front, they are all trying to set up in Israel for the first time, but again in four diverse fields; publishing, internet, trade and home services. Their prior experience ranges from decades down to months. If you were to put them all in a room together, you would come up with a list of talents several lines long.

So why have they sought out a business mentor? What is the common theme?

While chatting with one of these gentlemen earlier this week, I suddenly realised that there was a trait or characteristic that the four of them possessed in equal amounts. For all their vision, none of them allow themselves to focus on achieving their key ambitions. It is as if they deliberately try to sidetrack themselves.

Here is what I mean:

Adam (not his real name) looks to discuss grand theories of life, avoiding the specifics of his business.
Bryan talks of his competitors, and at length, but not about what he should be doing.
Colin comes up with new ideas, often good ones, at every meeting, but does not try to consolidate what he has achieved to date.
David likes to contemplate his next move, for hours, but rarely crosses over to the conversion side of this thought process.

And that is where classic business mentors can make the difference. They can break the mold of these patterns of behaviour, which may seem brilliant to the incumbent. It is the mentor who can bring them to understand and to internalise that these ‘business models’ only result in minimal income

It is the role of a business coach to show clients that something has to change and why. The question is whether these gentlemen or other people like them are up for that challenge.

12 June 2014

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Apps are supposed to improve the lives of people. The taxi protest in London, Paris, Madrid and Berlin yesterday against the success of Uber seemed to have the opposite effect. The lives of millions were disrupted for hours.

I am not convinced that these demonstrations will lead to much. On Friday, Uber “revealed that its latest funding round had raised another $1.2bn (£700m) at a valuation of $17bn (£10bn), and its backers now range from Google to Fidelity Investments”. That is a lot of financial clout.

While Uber may be the largest player around, it faces competition. Besides Hallo, Lyft and My Taxi, the next largest is arguably Get Taxi from Israel. While Uber’s sales are estimated at about US$500 million, the start up from the Holy Land rakes in about US100m. The founders of Get Taxi expect a fourfold growth by 2015.

Again, big bucks however you look at it. And Get Taxi is also looking to raise money, maybe on a valuation of US$3 billion.

What’s next. All the competitors will be looking to expand their reach, and Uber is already active in nearly 40 countries. There are also indications that the size of the taxi market is growing, as more people are able to play the role of ‘driver’. In turn, this should allow the consumer to benefit from better prices.

The joke is worth repeating. taxi drivers tried to disrupt lives of million, because their industry – protected from change for decades – is now forced to respond to a classic disruptive technology. Yeah for the software engineers of America and Israel.

11 June 2014

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We have all been there; sitting through minutes and hours – which seem like years – of time wasted in meetings, where the point of them has been…..well to put it politely, ‘difficult to discern’.

Yesterday, I attended 5 separate meetings. I ended two of them early, as we had accomplished all that needed to be said. Unfortunately, one session, ironically sprinkled with reps from leading areas of Israel’s commerce, left me bewildered. Why, after all these years, do people still not know how to behave in meetings so that they are efficient, effective and even fun.

It is some years since the British comedian, John Cleese, issued a series of videos, using humour to illustrate the problems of modern management. From a more sober angle, a blog on the Harvard Business Review this week argued “Yes, you can make meetings more productive.” Steve Jobs was renowned for ensuring that participants were reduced to a bare minimum.

For me, there are three key factors for ensuring that a meeting has great purpose.

First, the chairperson has to issue a firm agenda, preferably circulating it in advance

Second, participants must know what they want to obtain from the discussions. The contra of this is that the chairperson is left to do 90% of the talking and thus the meeting turns into a dialogue. Creativity is stifled.

Third, arguably the most important factor, time limits are critical. The chairperson should ensure that the meeting starts on time and that the meeting finishes by an hour agreed in advance. Otherwise, participants will know that they can arrive late – in Israel this is know as “Jerusalem Mean Time” – and leave whenever they want to.

So, why do we not learn? Why do we continue to waste countless minutes in our fast-paced lives in rooms filled with hot air?

2 June 2014

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The story of the twelve spies in the Bible is known to billions. Leaders of children of Israel were commanded to check out the promised land, ahead of their jubilant entry. Instead, they bought back false reports and the march forward towards Jericho was delayed 40 years.

Commentaries on the text are rich and varied. One of my favourites comes form Rabbi Ari Kahn, who explains how the Jewish princes wee asked to “see”, not spy, what was in front of them. Personal fears and intrigues led them to cover up the truth. In modern parlance, the mission became a fact-finding expedition, where vision and purpose were thrown out of the back of the tents.

I was reminded of this story when I was sitting yesterday with a client of mine in a Jerusalem restaurant. She has a very pertinent disruptive technology in the field of clean energy. I am not sure if there exists a description for a typical entrepreneur, but she would not fit the ticket. Nevertheless, she has grouped together a team, has created a working prototype, and is about to set off for an expenses-paid trip to a multinational manufacturer.

Our lady in question showed me a response she had recently received from the Israeli subsidiary of a conglomerate, which is known to help entrepreneurs. In fact they have a special programme to empower start ups run by females. Almost word for word, the letter questioned how the company could get this lady of their backs. She was a pest that needed to be got rid of.

Blunt? Rude? Absolutely. Shortsighted? To be seen. However, while hurt, my clientesse, has been able to look at the situation very wisely. The letter has enabled her to recognise the strengths of what she has achieved to date. She is very determined as to what are her end goals. In parallel, she has been prompted to identify with greater clarity where her weaknesses lie.

With hindsight, what happened was that when she first examined the letter, she had been handed a mission. Was she motivated enough to see her vision while others and events tried to distract her?

The answer? She has two requests to represent her company overseas in the next month or so, and the commercial insults are not going to stop her.

28 May 2014

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Thus wrote the Financial Times earlier this year:

Israel brands itself as a “start-up nation”, the second-largest source of innovation after Silicon Valley, as measured by the value of its tech start-ups. The country is the world’s third-largest source of listings on New York’s Nasdaq, after North America and China.

But for all the hype why would a big multinational or conglomerate invest in Israel?

In yesterday’s supplement of the The Calcalist (Economist) Hebrew newspaper, there was an interesting item detailing the most sought-after employers that operate in Israel. The top 10 included 4 mega players on a global scale – Intel, Facebook, Microsoft and Google. Of the next 40, at least a further 11 are also well-known international brands, like eBay, IBM and Pfizer.

And here’s the point. While Israeli salaries may be lower than European or American counterparts, the article makes it clear that these corporations are paying well above the domestic average wage. Why?

Let’s face it. Israel remains surrounded by geopolitical uncertainty with r&d centres in the firing lines of those who value human life differently from corporate America. The country has few natural resources. There are extreme differences between rich and poor. And Israeli brashness come sometimes become oppressive, to say the least. So why Israel?

The answer is simple. Back in 1986, Israel began to ditch the “desert economy’ attitude and learnt to offer quality content to the world. In parallel to this increased openness, the high-tech industrial revolution took place, where Israel has much to offer in the fields of internet, nanotech, mobiles, solar energy and much more. And in local brawn power, often tried and tested within the military, you end up with the very formula that leading multinationals cannot readily find elsewhere.

There are those that oppose this openness. They demand that the world boycotts Israel, (although they frequently allow their own products and services to be marketed in the Holy Land).

But here is the real irony. For all the shouting of the hate campaign, their supporters are totally unable to cut out the effect of eBay, Siemens, Intel et al on their lives. Even the logo of Google was designed by an Israeli.

It is that momentum that has encouraged “Global Corporate Inc” to seek out the Israeli job market.

26 May 2014

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When Fitch affirmed Israel’s economy “A” credit rating this week, the news was not greeted with any surprise.

Among key drivers behind the Fitch rating, analyst Paul Gamble cites the fact that fiscal consolidation remains on track. The central government deficit narrowed to 3.2% of GDP in 2013 compared with a budgeted 4.3% of GDP and a 2012 deficit of 3.9% of GDP, due to tightening measures and various one-off factors. Revenue strength resulted in a small surplus in the first quarter of 2014, compared with a deficit of 0.5% of GDP in the first quarter of 2013. Political commitment to consolidation appears strong and a fiscal rule has been tightened, Fitch says. It forecasts a further narrowing of the central government deficit to 2.5% of GDP in 2015.

What is important to realize is that when it comes to Israel, Fitch is dead in line with its rivals; Moody’s and S&P. All of them have Israel in the “A” or above bracket.

Yes, there are problems. Just look at how the unions at the ports are still able to maintain their restrictive practices. The geopolitical situation remains unsteady, as it has done throughout Israel’s rapid economic growth since 1986. And many ask if the economy is too dependent on revenues from the new found off-shore gas reserves.

My point is different. A technical writer once explained to me that if you want to emphasise a point to a reader, you should cite three examples, one directly after the other. These international credit rating companies have together shown to the international finance community just how positive is the current positioning of the economy in the Holy Land.

21 May 2014

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Yesterday, I attended the Israel Innovation Conference in Tel Aviv. One of the most impressive aspects of the day was the plethora of international delegations. And what are they looking for?

Well, the Chinese Vice Premier signed a formal agreement, enhancing r&d cooperation between the two countries. I spent two hours at a networking meeting with 20+ people from Hong Kong. Their message is simple – Hong Kong needs to buy into Israel’s concept of entrepreneurship. And tonight, I intend to mingle with the Aussies, a combination of investment specialists and high-tech experts, whose stated aim is to learn about Israel’s successful eco-system.

The conference features a fascinating range of new technologies and products. Just to give two quick ‘tasters’:

INDI has developed a non-diary formula for infants, which resolves 99% of all problems related to cow’s milk. No website, and yet they are about to commence trials
CellBuddy is a consumer’s dream. Based on a novel SIM card, the company allows you to choose your own mobile carrier. The product is due for launch later this summer, threatening the high prices of many carriers around the globe.

The point is that these visitors are following in the footsteps of many other international leaders of commerce. And again there are a couple of examples of such investments in this morning’s newspaper. “Alcatel-Lucent (ALU) plans to open a Bell Labs research center outside Tel Aviv to help the French network-equipment maker advance in cloud technology”. And Bell has been applying its knowledge since 1925. In parallel, Samsung intends to extend its operations in Israel, by opening a ‘center for excellence’ for health / bio technologies.

The lesson is simple. Israel has created has successful model for embracing new technologies. However, the mandarins in Jerusalem must be aware that there are others who are watching, learning and looking to improve on that same concept. That too is a form of innovation.

17 May 2014

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Jeff Pulver is a serial entrepreneur. He has been travelling to Israel for decades, promoting, investing in and encouraging the country’s technology. In an extensive interview, he questions whether the world has still to fully appreciate the extent of the Holy Land’s contribution to the high-tech / cleantech / nanotech / biotech / mobile revolutions.

The discussion is timely. This coming week in Tel Aviv, thousands of overseas delegates will converge on the Mixiii Innovation Conference, a celebration of nearly everything that Israel has to offer in these fields.

Israel loves to see itself as a direct equivalent to Silicon Valley. Waze and ReWalk are just two of dozens of Israeli companies changing the lives of people around the globe. Eric Schmidt, the CEO of Google, recently considered that the next Google could well emerge from Israel.

If I had to choose two examples of what Israeli brawn is contributing to the global economy, I would start with Innovation Africa. This is a stunning project, which is able to introduce Israeli water and irrigation projects to some of the poorest yet most populated areas in the world. Second, and at the other end of the spectrum, is SCiO. This minute device is able to assess in a few seconds the sweetness of a fruit, how much fat is in a lump of cheese and even if your Viagra tablet is a fake.

Pulver may be right. Maybe the business leaders of the world have yet to comprehend how a country the size of Wales is able to produce such a wealth of brilliant concepts. That said, those who turn up at Mixiii in Tel Aviv are going to have a ball.

15 May 2014

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What most troubles the owners of small businesses?

In my experience as a business mentor, I often come across troubled business owners, suffering from the inability to create a reliable cash flow that outlines the trouble spots ahead.

The reason I raise the question is because this was the point of discussion at a recent conference of experts in Israel. The responses were numerous, including: –

Regulation and bureaucracy
Suppliers, who try to rip you off because you have little leverage
The supposed need to offer a low price in order to break into the market
Lack of bank credit

There is no doubt that these factors are often present. And the list is much longer than I have summarized. However, I am skeptical. They come from bankers or local leaders of commerce, most of whom have never set up their own business, from scratch and with minimal resources. I do not believe that they have reached the core of the problem.

If I had to put my finger on one subject that encompasses all of these things, it is the subject of time management. People find that they do not have enough hours in the day to complete all the main tasks – prepare a financial plan, call new customers, deal with existing customers. meet with an important supplier, and then smile as they take out their spouse for a birthday treat.

When I sit down to coach my clients, it was almost inevitable that I will begin to explain to them sooner rather than later that in an average work day, there are rarely more than 10 hours of execution time. If you plan for otherwise, the reality is that you are lying to yourself. It’s Pinocchio time.

And the solution. Be honest. Be realistic. Adjust your expectations and find people to delegate to. You cannot beat the clock that has been ticking successfully, despite the efforts of mankind, for thousands of years.

11 May 2014

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For almost a year, Israel’s economy has been rated by Standard & Poor as “A+”. “Israel’s fiscal consolidation is on track, economic growth is steady, and that the debt-to-GDP ratio has fallen.” So what?

I was reading an interview with Moritz Kramer, S&P’s Chief Sovereign Rating’s Officer. He made three very simple points.

First, of the 23 rankings that S&P provide, A+ is the fifth highest. That means that Israel’s credit rating is extremely strong and thus enables the country to raise money more efficiently on the international financial markets.

Second, compare this position to 2007, less than a decade ago. Then, Israel was bottom of the Mediterranean club. Today, the country’s ranking is second only to that of France.

Third, and possibly most important for Kramer, Israel moves ahead by learning from past mistakes. For example, Israel’s banks largely avoided the credit crunch crisis of 2008. They had been through a bad experience two decades previously and had installed better practices.

Where next? Simple. Do not surrender these achievements in to the hands of politicians and interest groups. Now there is an interesting challenge for the Prime Minister.

9 May 2014

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The internet is flooded with articles about how MDs and CEOs should operate. It is not just about management. They need to be seen to be leading, inspiring, motivating – ensuring that others follow where they boldly tread to go.

My experiences this week reminded me that there is another competence test that these senior execs face. In fact, if you were to map their required skills, this element would come before the need to demonstrate qualities of leadership. Here’s what I mean.

I am mentoring a CEO in the Israeli high-tech sector, who had been in the process of revamping her strategy. The process compelled her to evaluate the impact of the changes on existing human resources’ set up. In turn, this resulted in some difficult decisions vis-a-vis releasing specific individuals. All that remained was to verify the conclusions and then decide the hows and whens.

While this was evolving, it emerged that one of the candidates for dismissal had acted in an inappropriately over a contract. Madam CEO was outraged. What should be said and done?

After much private consultation, the subject of the contract was barely mentioned. Why? Because the CEO realised that what was core was the future direction of the company. It had already been decided who this did and did not included.

The subject of the contract was a sorrowful diversion. While it strengthen the CEO’s resolve, it did not derail her from what she had originally planned to say to her worker.

Her internal feelings remained in second place, deferring to a professional and commercial approach. This allowed her to remain professional throughout. In other words, the CEO made sure that she had identified the key issue, before acting and before going out to explain her decision later-on to other senior players in the company. And that is a sign of a strong company leader.

6 May 2014

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

All countries dream of being economically independent. Actually, it is an illusion. The fact that all countries trade, even North Korea, means that we all need each other.

Now consider the strange case of Israel’s economy, which was officially established 66 years ago in May 1948. The moment independence was declared, several Arab states and auxiliary armies invaded. Not a great start. Jump forward to 1986 and several wars in between, the economy was defunct – hyperinflation, tariffs protecting inefficient local industries, unemployment and more.

Today? Well, the country is no longer dependent on exports to Europe and to America. In stark contrast to established geo-political norms, Israel is seeking to become an exporter of fossil energy like gas. Hichtech – mobile, internet, cleanteach, biotech, nanotech, etc – remains the main drive of economic growth.

tech sector is very much based on local brawn and overseas investor capital. It is a basis for mutual discovery. Take two announcements from this week alone.

Intel’s first overseas presence outside America was Israel. There are currently three massive r&d plants in the Holy Land. They employ close to 10,000 workers and generate around US$4.0 billion annually in revenue. The company has just agreed to invest a further US$ 6 billion in their operations in Israel. That mean millions of more satisfied customers around the world.

Google already has executed five separate investment decisions in Israel. It runs and r&d centre near Tel Aviv. It even has created a special logo for web browsers during Israel’s Day of Independence. In the past few months, Chairman of the board, Eric Schmidt. has reiterated his belief that “Israel has the most important high-tech centre in the world after the US.”

Schmidt’s own personal fund, Innovation Endeavors, has already taken a position in 14 Israeli start ups. In an interview published in Hebrew, he has pledged to up that commitment over the coming year.

There are those who take the position that Israel should be boycotted. If you consider the impact of Israel on the global society via these two commercial monsters alone, you immediately begin to understand why this argument is not just impossible but is hypocritical as well as downright odious.

It is fascinating to see just how Israel’s economy since 1948 has progressed, both internally and as an important element in creating wealth for the rest of the world.

2 May 2014

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

Israel is often considered as the ideal “start up nation“. One of the characters that represents that picture is Bob Rosenschein. Originally from Pennsylvania, he founded his first software company in 1988, when Israel was still recovering from nearly a decade of hyperinflation and recession.

In his time, Bob has consulted to Microsoft and sold a company to Microsoft. Depending on how you count, he has launched at least three successful internet / software companies over the years. In 2009, he was named Entrepreneur of the Year by Ernst and Young. So what makes him tick?

This week Bob gave a beautiful yet sophisticated presentation to the Jerusalem Business Networking Forum. His gentle humour helped to illustrate 6 salient points to a packed auditorium.

NETWORKING: We are given opportunities to meet new people almost every day. Recognise them and use them. Understand why each person is unique and can potentially help you, today or tomorrow.

LOVE YOUR PRODUCT: It is a tough world out there with people throwing all kinds of stumbling blocks in your way. Know what you can do, and find a way that every different audience can appreciate its value.

FOCUS: Understand early on the true core activity of your product, and this means you should not be afraid to challenge the experts.

SELF PITY IS OUT: Never feel sorry for yourself. It is a path to nowhere.

SELF BELIEF: Whatever happens, remember that you can and will change the world

For me, the most useful point was something that emerged in the Q&A session towards the end of the event. It emerged that staff turnover at each company had been very low. Evidently, he paid well (most of the time). As expected, the environment were positive and creative.

However, what really made the difference for Bob was that anybody who was “mean” did not last long in his little empires. Effectively what he was saying was that this human fundamental took away the benefits from each of the five values listed above. To create a pun: It would appear that he was able to build mean teams that were not mean.

For the past three years, Bob Rosenschein’s efforts have been concentrated at Curiyo. “A browser app that brings you everything you need to know from top publishers, social networks and blogger” is clearly set to be his latest contribution to successful software enterprises in Jerusalem.

30 April 2014

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

Two commercial set ups, both employing fewer than 10 people.

Client number one tells me that he is too busy to see me, because he has to deal with a severe drop in sale in his shops. Client number two says he is too confused to meet me, as he wants to work out why his main customer will not pay him properly.

Hey guys! Remember my expertise? I am your business mentor and coach. I can show you how to look for the answers and how to handle them.

The above outlines refer to actual scenarios that I have faced recently. I was thinking about them, when talking today to my ‘mentoring guru’, a Jerusalem taxi driver. Portly to say the least and having exhausted his explanation of the delights of his new Mercedes, he asked me what I do for a living.

When I responded by describing that I meet with all kinds of clients in multiple sectors and at different stages of commercial development, he asked me how I knew about so many industries. I corrected him. My real ability lies in spotting strengths and weaknesses, ensuring that the person in charge then acts accordingly and thus moves forward towards their commercial dream.

In other words, business mentors and coaches help others create added value within their own business, no matter how early stage or developed they are, small or large. Here are three case studies from firms I have worked with in the Jerusalem area.

A) Some years ago, I was mentoring a young couple who had returned from a long stay abroad, intending to set up a service company. They were keen, smart, dedicated, skillful, but were the first to admit that they knew very little about running a business Equally, I knew nothing about their field, yet we diligently went through the motions of talking about budgets, cash flow, marketing, team building and more. The progress appeared slow and eventually we agreed to part ways.

We kept in touch and I was fascinated to hear I they referred back to techniques I had taught. Today, they have an office in the centre of the city, employing four additional members of staff.

B) Josh was looking to set up an art studio. A dream of his youth, he was prepared to put in his life savings to make the project succeed. Sites were examined, budgets prepared, and plans were designed. However, when faced with my probing questions how all this was to convert into revenue, the sums never added up.

Josh found himself rethinking, which allowed himself to curtail his financial exposure. He has developed an approach, which is smaller in scale, but allows more revenue much quicker.

C) David has a large shop, open for nearly a decade. Each year, he has progressed, against all odds. However, last year, without realizing it, he lost control of the cash flow, and thus he has been fighting banks ever since.

Initially skeptical and after careful joint evaluation, David invested heavily in advertising an end-of-season sale. Contrary to national trends, David’s shop recorded bumper results. The campaign is now being extended.

The conclusion? No doubt about it. These small business owners took a calculated risk. They were the ones to think things through. They did the work to ensure a smooth operation. And fortunately, they were supported by an experienced business coach.

Pages

Can the IMF alone find economic relief for Gaza?

The colour of business mentoring, in Jerusalem

What is the best time of day to do my most important work?

Look who is investing in Israel – June 2014

How Israel remains a ‘start-up nation’

Who kidnapped Israeli society?

Why 4 gentlemen need a business mentor

The new economics of hailing a taxi

3 tips for a successful business meeting

In business, are you able to spy your vision?

Should tech leaders avoid Israel?

Israel’s economy – 3 strikes are you are “in”

How Israel’s hightech still attracts world leaders

What is Israel’s global role in technology development?

The key issue effecting small business owners is…..

Who rates Israel’s economy?

Managing directors and CEOs – not just an issue about leadership

An indepenedent economy? 66 year case study and counting

6 practical tips from a serial Israeli entrepreneur

Do small organisations need a business mentor? Welcome the Jerusalem Syndrome

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

"Michael helped my high tech company take off."

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

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