Afternoon Tea in Jerusalem Archives - Page 42 of 75 - Michael Horesh Business Coach and Mentor

28 April 2013

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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

When people come to live in Israel, they do not just bring with them their version of zionist-religious ideology. They often turn up with a commercial concept for implementation. Something new or the transfer of an existing business – either way, the question remains: how to make it work in a foreign land, where they do not speak your language? Dreams and reality never seemed further apart.

A few days ago, I gave a talk to the AACI, a non-profit organisation that provides services to new immigrants to Israel from North America. The theme was how to set up a business in Israel.

The audience cut across a wide platform; new apps, classes for children, internet selling and more. In many ways, much of my talk could have applied to setting up in any country. You have to be prepared for many rough bumps along the way. Cash flow needs to be managed and over the long-term. Know your market. etc etc.

One issue that I stressed was the need for a business mentor, and I mentioned how I could have saved lots of money (on headache pills and more) if I had found somebody years ago. Let me give two recent examples of clients of mine.

Today’s case study first came to me when he was at a crossroads in his professional career. Could I tell him what to do? Actually – no!. However, I did ask what he ‘wanted’ to do, a seemingly innocuous question, which is rarely so easy to answer. Why? Because it forces us to be honest with ourselves and then take responsibility for the answer.

We spent some time going through the responses and beginning to work out what resources were required. Then he was presented with a potentially frightening moment – a dream opportunity came his way. Should he go for it?

So, stage two was all about evaluating the pros and cons. Textbooks call this a SWOT analysis. I look at it in much broader terms – ensuring that the client is aware of both his personal and commercialchallenges. My aim is to ensure that they are not glibbed over and nothing is taken for granted.

Just recently, the client opened his enterprise. As I pointed out, now the hard work starts.

21 April 2013

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

Last week, London buried former Prime Minister Baroness Thatcher. Her beliefs hauled Britain’s economy away from disaster in 1977 and towards prosperity by the early 1990s. Since then, Thatcher’s methodology has been copied by numerous other macro financial planners, usually with success.

For all the benefits of sweeping privatisation and free economies, specific communities in Britain were devastated by the changes. they were never cared for in a fair manner. This created a hatred that was sadly still evident decades later at Thatcher’s funeral.

Thatcher was a great friend of Israel. The Holy Land’s economy has also seen a massive transformation since 1986. However, it continues to suffer from key structural restraints. One is the old-fashioned and expensive labour practices at its ports. A second is the ludicrously high cost of air travel. And in order to tackle the problem of airplane tickets, today, Sunday, the government in Jerusalem is expected to ratify an open-skies policy with the European Union.

To give a very simple example of the problem: A few years ago, I flew 50 minutes from Tel Aviv to Cyprus, paying hundreds of dollars for a return flight. At the time, I noticed last-minute one-way deals from the UK to Cyprus available for as low as 6 dollars. Enough said!

The benefits of the change will be sweeping and immediate. Holidays and business travel will become cheaper at an instant. Easy Jet has already announced that it is poised to lay on several more flights to Israel, and not just from the UK.

And the down side? Very simple. Up to 17,000 local jobs will be placed at risk. The unions are furious and the strikes have started.

As somebody who needs to travel overseas for commercial and private reasons, I have long been furious with the amount I have had to pay for each ticket. However, I am deeply sympathetic to the unions. El Al and its sister companies are rightly forced to incur heavy security costs, because of Israel’s geopolitical situation. (Just consider why there was no point in targeting an Israeli aircraft on 9/11)! These are overheads that none of its overseas competitors face.

So what can be done? Yes, we all know that the unions are replaying a game to see how much they can screw out of the system before they lose power. For all that, they have a very reasonable argument. Why the domestic airline companies, unions and government cannot talk this out is beyond me. It goes back to some basic practices of ‘good business’, sorely lacking here.

Sooner or later, the revolution will come. The question is whether the government can show enough competence to ensure that the suffering – immediate and longterm – is reduced to a minimum.

20 April 2013

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Categories: Afternoon Tea in Jerusalem, Business, Israel

We are taught that what separate the human and animal worlds is our ability to communicate. This is a precious skill, which must not be abused.

In mentoring sessions, I am accustomed to explaining to people how they can use their words more pertinently and how they can understand others through questions rather than assumptions. In parallel, I have to encourage my clients to look beyond the barbs which they may receive from their own customers.

In modern parlance, social media has become an excellent platform for attacking somebody without having to show your face. Sad, cruel, but nothing new. For example, two thousand years ago, a leading rabbi of the period, described the biblical phrase of ‘love your neighbour as yourself’ as a summary of the Bible. And yet tens of thousands of his own students were later to die in a plague, because they were unable to respect each other. (Was it a coincidence that they were reported to have died through some form of throat constriction?)

Last week, I read a fascinating anecdote in the paper, which featured two of Israel’s leading retailers, the CEOs of the clothing chain, Fox, and of the super stores, Hamashbir. To cut a long story short, they found themselves in court suing each other, due to a dispute affecting who had rights to a lucrative space in a large shopping mall.

Surrounded by lawyers and in the heat of the moment, they fortunately had the good sense to listen to each other. At one point in the arguments, the gentleman from Hamashbir departed from his spin or ‘script’ and spoke from the heart. Unwittingly, what he ended up doing was to abandon legal drivel and to talk in a manner that allowed his rival to understand him.

Within a few minutes, the lawyers had been told to stand down. The opponents are now good friends, while remaining competitors for the pockets of the public. By talking to each other, they have learnt what each other is thinking, and by definition this promotes understanding.

We are too quick to use our tongues to lambast and to criticise. Those same physical abilities are better employed to ask, to praise and to encourage customers, suppliers and our own colleagues.

17 April 2013

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Categories: Business, Israel, Jerusalem

Yesterday, I had the honour and privilege to attend a ceremony at the President’s residence in Jerusalem, where 120 soldiers were presented awards for outstanding service. This is an annual event, traditionally held on Independence Day.

Israel has come a long way since it was founded in 1948. The population has multiplied ten fold. The economy is no longer renowned for Jaffa oranges but the technology behind the production of fruit, medical devices and clean energy. It is the one country in the Middle East with a growing Christian population.

Yes, after 65 years, all is not perfect. Just look at the continuing problem of football violence. Every winter, strategists fret if the Holy Land will receive enough rainfall. And, of course, neighbours such as Iran, Hamas and Hizbollah still look to remove the country from the world map.

However, these 120 soldiers showed a country which strives for excellence. Just look at the composition of the group

Despite the macho environment, around a third were female.
Around 10% were born in other countries
One was confined to a wheelchair, but remains determined to do “their bit” for their country
The religious make up ranged from ultra orthodox Jews to irreligious to Druze.
While some served in front line units, others were developing capabilities to secure the defence of the civilian population.

As President Peres reminded the audience in his address, the official name of the army remains the Israeli Defence Forces (IDF). It is based on strong humanitarian principles that cannot be hidden by the weapons of its enemies.

And how does this ethic enter Israeli society? Sodastream has seen tremendous success over the past decade. Trading on NASDAQ and with recent adverts at the Superbowl, Sodastream has never hidden the fact that it has a factory on what Palestinians see as their land. That said, I encourage you to watch this video, prepared by Sodastream, which shows how despite 65 years of continuous threats, Israel continues to improve its model for successful integration and pluralism. Happy Birthday!

16 April 2013

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

A couple of years back, I discussed Guy Kawasaki’s book, “Enchantment“. This sales and networking guru spent 200+ pages discussing how people can charm, delight and enrapture others to buy products and services. The techniques results not in a one-off sale, but a long-term and mutually beneficial partnership.

I still recommend the book to mentoring clients. And I have just added to my hit list “To sell is human” by Daniel Pink. Now Pink’s last official job was back in 1997, employed at the White House. By 2011, he was rated as one of the most influential business thinkers . So what makes Pink’s book a natural follow-up to the writings of Kawasaki?

Pink also discusses how to influence, to persuade and to convince others. He moves beyond the usual blurb of empathy and encourages us to understand what and why others are thinking, even while we talk to them.

And when Pink says ‘talk’, he means “move”. After all, as Pink observes, even teachers and medics are in sales, asking people to change how they go about their lives. We are all doing it,most of the time.

There are many fascinating anecdotes in the book. Rosser Reeves, the man credited for inventing the phrase ‘unique selling proposition’ (usp), is given an honourable mention. He noticed a beggar struggling to receive handouts, based on the sign “I am blind”. Reeves added four words – “It is springtime and I am blind”, and the beggar went on to make a fortune. Why? By using the technique of contrast, the sign became much clearer – understandable and with a direct message – to the target audience.

My favourite story refers to Dr Turner and his team of radiologists at a Jerusalem hospital. Turner initially attached a photo of each patient to each file and then he asked his colleagues to submit their reports – who had broken a limb, contracted a disease or whatever. As Pink wrote, a good cardiologist do not confine themselves to the obvious, but search for the hidden.

Three months later, Turner submitted the same files, but without the pictures. 80% of the extra comments that had appeared in the first round did not find their way into the second group! The conclusion? If you remove the personal aspect and restrict the opportunities to understand your target group, you are unlikely to succeed in making a connection. In other words, no sale!

And one final tip on how to move people: My wife bought me Pink’s book. She did not force me to read it. As she handed it over, she implied that I could benefit from the insights.

14 April 2013

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Last week, I wrote how GE is upping its involvement in the Israeli economy. To paraphrase the words of William Ruh, vice president of the company’s software and analytics centre, the conglomerate cannot afford to miss out on Israel’s technological capabilities.

OK. Very complimentary. However, GE is not alone, according to the group Israel Advanced Technologies Industries, GE is just one of 260 overseas centres operating in Israel, employing around 20,000 people and who-knows-how-many others indirectly. For example, Microsoft announced just today that it is looking to Israel as a junior ‘Silicon Valley’ that will help it to boost future revenues. Over the past 15 years, the gates team have made at least 11 key strategic decisions regarding its position in Israel.

Who else? Well, here is part of a list that I saw printed in the newspaper recently:

Apple: 3 centres, 500 employees. Software for iPhones and iPads are is developed in the Holy Land

Intel: 5 centres with 8,500 employees. Previous, current and next generation of chips have started out in the labs of Jerusalem and its surroundings

GM: 60 workers in Herzylia. They are working on a design for a car without a driver and also converting side car windows into inter active computer screens.

Samsung: 250 employees in north Tel Aviv are producing technology for the camera on the Galaxy phones.

And the list goes on.

This week, Israel is celebrating its 65th anniversary since it was founded in 1948. Readers of this blog have the option of supporting the enemies of the one democratic country in the Middle East and boycott these amazing technologies and capabilities, or they can go out and celebrate the freedom and pluralism that they represent.

12 April 2013

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Israel’s new Minister of Finance, Yair Lapid, is putting together a package of tax hikes and budget cuts. He will seemingly break many of his election promises and those of his Prime Minister despite being in office barely for eight weeks. However, the country’s coffers is short of around 14 billion shekels (around US$4 billion) and so something has to give.

It will not be pleasant. Opposition parties will have a field day, pointing out with much justification how the average citizen will suffer. However, that does not mean that all is gloom and doom with the finances of the Holy Land. With growth still forecast at about 3% for each of the next two years and unemployment remaining steady at the 7% level, Israel is not sinking like other Mediterranean economies.

In fact, Israel has much to shout about to the rest of the world. For example, this week, the vice president of GE’s software and analytics centre, William Ruh, was in town. As he said:

the world of industry is on the brink of an Internet revolution that will transform it in much the way Internet has transformed the world of retail, music and social networking. Industries from rail to aviation are moving from “unintelligent” machines to “brilliant” machines, which are able to harness massive efficiencies by taking in real-time information and adjust accordingly…………Israel is probably the best place in the world to do cyber security (which will protect those new systems).

Ruh’s comments came in the same week that Avago (Singapore) purchased a small Israeli start up called CyOptics for US$ 400 million in cash. The company’s optical components enables the high-speed transmission of video content, currently a major stumbling block for mobile receivers.

In fact, while Israel’s economy has chalked up a number of achievements in recent weeks, what caught my eye was a survey from MIT. Analysing 120 universities, the report cited the Technion in Haifa as the 6th most suitable centre for innovation and entrepreneurship – one of only two non American establishments in the top ten places.

Very impressive, but the question is why or how does Israel manage to compete despite being a small country and being surrounded by violent enemies? One answer was provided by a new ‘social progress index’. This covers “fifty-two indicators in the areas of basic human needs, foundations of wellbeing, and opportunity show relative performance in order to elevate the quality of discussion on national priorities and to guide social investment decisions.”

Of the 50 countries tested, Israel came 16th, leading the Middle East block by far. Specifically, “Israel excels at providing building blocks for people’s lives such as Health and Wellness and…..of issues covered by the Opportunity Subindex, Israel outperforms in providing opportunities for people to improve their position in society….”

10 April 2013

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

“From surf wear to Chinese food, innovations in inventory management are helping businesses reduce their bottom lines.”

Thus opens a recent blog on the Forbes website by Lisa Wirthman. Her observations are not revolutionary. Earlier this week, I was talking to an accountant from one of the UK’s leading auditors, which specialises in creating corporate rescue plans. He reported how time and again their initial evaluations of a client in financial distress indicate that bloated stocks are a prime cause for the meltdown.

Let me spell it out. If you buy stock and you do not sell it before you have to pay the supplier, then your cash flow is transferred from your bank account to your shop shelves or the warehouse. You are generously paying the wages of your suppliers rather than saving for your next holiday.

This is a rule that applies to all businesses around the world. The good news for a small business is that it does not necessarily need to purchase a complex piece of software to get on top of the problem. Here are two examples from Jerusalem to illustrate what I mean.

Sometime ago, I was invited to the offices of an exporter of gift items, manufactured in Israel. To paraphrase the discussion, I was asked fairly early on in the mentoring sessions: “Why do we have a hefty red sign on our bank pages, when orders are pouring in?”

As I was preparing my answer, I noticed a large number of boxes on the floor. In response to my question, I was told that this was stock waiting (yet again) to go out, but were all delayed for the lack of solitary items. Here is the key: While payment to my client would not be made until delivery had been completed, my client was about to commence handing over cheques to his suppliers. Case solved, Watson.

Story number two takes me to a small shop in the heart of Jerusalem. The owner was surviving via large short-term loans from relatives. One look at his shelves indicated the core of the problem – he had no idea what he was selling of which items. In paralle, he was purchasing new stock by ‘rule of thumb’. He had so much stock that in some places the customers could not reach the shelves because of so many items had to be placed on the floor.

A new rule was introduced; All new supplies were to be cut by 50%, and this has been in force for several months. In addition, the shop has introduced a very simple tracking system of customers and their tastes.

And the upshot of these changes and greater awareness? My client has given up his reserve warehouse. And I am pleased to report that interest repayments to the bank are dropping significantly every month. Elementary?

2 April 2013

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

Procrastination is a common problem in life. We all put off doing something. One common cause is simple old-fashioned laziness. The other? Well, the task in question may appear to lie way out of our comfort zone.

Actually, more often than not, the project turns out to be the perfectly doable. Only last week, a CFO told me how three subjects had been waiting in their in-box for weeks. Fortunately, the employer did not suffer, as the issues were of a mainly personal nature. In fact, a few days after our discussion, everything was completed……with no noticeable pain or trips to a doctor.

But what happens to the CEO who just refuses to deal with something and keep up this position for the long-term? This is a common problem faced by business coaches and mentors.

For example, I know somebody near Jerusalem, who hates technical problems. At home, they always leave do-it-yourself jobs to their spouse. However, in a commercial climate of globalisation, we have to be savvy with ever-changing technology in the work environment. Unfortunately, this business owner is not and will not change readily.

Now my CEO has a ‘super wow’ mobile phone, but barely knows how to use it; very few downloads, little music and minimal extra content. In fact, they have refused to learn how to receive e-mails on the phone.

This means that they can only keep up with important messages once they return to their office. By definition, that is slow. When people often require an immediate response, our friend keeps them waiting for hours or more. It would an interesting exercise for an economist to calculate how much work has been delayed by this procrastination – the deliberate avoidance to find out how to receive messages in real-ime.

Today, the CEO called me. They read a book on the weekend on the importance of mobile marketing and the technology of apps. BINGO, as they realised how they are missing out big time. Apparently, it took them ten minutes to tackle what had been put off for two years!

29 March 2013

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Around the beginning of April every year, Jews recall the Exodus from Egypt at the festival of Passover. The importance of this tradition, dating back thousands of years, was brought out during the Nazi Holocaust. There are stories of unleavened bread (matzah), proclaimed in the Bible, being smuggled into the concentration camps.

As a business mentor, I continue to find that the stories, anecdotes and explanations of the rituals and laws of the festival have meaning in a wider context. Specifically, they can be applied to our every day commercial lives.

This point was driven home as I was reading a series of articles about the late scion of American Jewry, Rabbi Yosef Soloveitchik, and his commentaries on what happened way down in Egypt all those years ago. Three examples:

1) Crying out

We read that the Children of Israel ‘cried out’ in pain. We assume that the pain was caused by the stressful workload imposed on the slaves. However, the question remains was this the only problem? Was it the real issue? More recent discussions reveal that the Jews were actually more troubled from the law which prohibited marital relations. It was only a ‘higher and external authority’ who could understand the true underlying need and resolve the issue.

In modern parlance, I am sometimes approached by companies that ask me to find new them export markets. Fair enough, but why? It is not so much that they believe that they can make more money overseas. A common reason is because they have spare capacity to be exploited. Meanwhile, they have often ignored the issue of the costs of new marketing channels.

In other words, they have reached an operational decision based on a restricted understanding of their problems. It is the responsibility of a mentor to point that out and to encourage them to reflect on the basis of their decisions.

2) Living with your decisions

Rabbi Soloveitchik was an orthodox rabbi. For all the demands of his religion, any religion, he fervently preached that Judaism was something to be tasted and seen. To paraphrase, it should be felt as a comforting hand on your shoulder.

Similar words can be used for our own commercial environments. We cajole employees. We are desperate for the next client to sign up. We rush around trying to accomplish so many tasks everyday that we tend to lose sight of our vision.

My point is that work should be something that you want to do. Even when there is pressure, we should be able to understand why it is there and the potential benefits at the end of the assignment. The day-to-day issues should be items that we want to liaise about with colleagues, below and above us. If not, well like any religion, life and work become a meaningless set of restrictions, which foster hatred and discontent.

3) Leadership

Moses is considered one of the great leaders of all time. However, with some irony, he is barely mentioned as the Jews leave Egypt. In contrast, his prime moment comes at Mt Sinai, when the 10 Commandments are imparted and eventually passed on to hundreds of thousands of eager followers. What we learn from this is that more than a leader, Moses was a teacher. He possessed talents to influence others.

Entrepreneurs often confuse titles: leadership, management, strategy. Many a CEO believes that they are good at all three, when they rarely have the abilities to deliver on one of these separate skill sets. Moses was a modest person, acutely aware of what he was and was not good at. He never shirked to bring in help via his brother (Aaron) or sister (Miriam), or even to reach out to consultants’ such as his father-in-law, Jethro! How often does that happen in modern business? How many times to you hear of people being proud to accomplish things all by themsleves?

As a concluding thought, I am always encouraging friends and clients to keep up-to-date with new literature and alternative approaches in business. However, sometimes we have to remember that many of the best points have already been passed on to us several millenia ago.

27 March 2013

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Earlier this week, I referred to a survey of Israel’s VC industry for the past decade, as reported in the Hebrew newspaper “Calcalist”. When you consider that you are dealing with a society of barely 8 million people, surrounded by geopolitical issues that have befuddled world diplomats for nearly a century, few natural raw materials (until recently) and an economy that in 1986 went in to ‘shutdown’ mode, the statistics below become even more impressive.

So how has Israel. affectionately known as the start-up nation, fared over the past decade in terms of spinning off its success?

1) There have been 772 known exists in the high-tech sector, which have a combined value of US$41.6 billion.

2) 200 of these deals had a net worth of over US$200 million each.

3) Two deals are of particular note: In 2006, HP purchased Mercury for US$4.5 billion. Last year, Cisco took over NDS for a cool US$5 billion.

4) Of the 772 exists: 233 involved software companies and 185 related to the communications industry. The bio sector clocked up 117 ownesip transfers, but cleantech measured a mere 24.

5) In terms of value, US$12.9 billion went to the software companies and US$10.2 billion to telecom.

6) The average length of period to an exist is just over eight years, a figure which varies from sector to sector. For example, bio companies generally only see a buy out towards the end of their second decade.

The survey records the names of individual successful serial entrepreneurs, such as Yair Goldfinger and Lior Tal. I did not see a mention of how much money remained in Israel nor how many jobs were lost after the sell-offs were completed. And yes, I wonder how much money ended up with the ordinary employee.

What I would have beena fascinating exercise is an assessment of by how much this wave of success has raised Israel’s GDP and the net impact it has had on the economy as a whole. Let’s face it; something has to explain Israel’s ability to maintain 3% growth in 2012, as opposed to the strugglers like Greece, Spain, Cyprus or even Britain.

25 March 2013

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

European economies are hiding their economic dismay by claiming that they can relaunch growth while consolidating. Seems a nonsequiter to me.

Now try this. The Israeli government, regional economic powerhouse and boasting a record of 4% annual growth for much of the past decade, has spent the past 9 months preaching that its fiscal deficit is under control. The spin was that ‘we know we have a budgetary gap of 14 billion shekels and it is planned for’.

As I have written for much of the period, this was irresponsible tripe – another non sequiter. As if to prove it, Yair Lapid – new to politics and new to economics and new to the position of Minister of Finance – has declared that the overdraft is worse than feared. VAT looks set to rise. Corporation tax will join the trend. Payments to large families will be chopped. The army will have to make do with fewer purchases this coming year. Quelle surprise that many of these issues take on former ‘untouchables’ of the Prime Minister and political allies of his previous government.

The recent British budget tried to kick-start growth by providing aid to small business. In Israel, this has been available in various forms for many years. And there has been a heavy emphasis on help for entrepreneurs in high tech. The result? According to new figures, the average value of exists per year for the past decade is over US$4 billion, involving a total of 772 companies. Very praiseworthy.

The down side is that the banks have been making a fortune on the rest, who simply struggle with their cash flows. An analysis of Israel’s five leading banks, which was published in Hebrew this week in the “Calcalist” newspaper reveals that their profit on loans to small businesses reaches 23%. And all this while some of these hand outs are backed by the government.

To clarify – as opposed to a non sequiter, this is a rip off. It is a hindrance to growth. Add in to that the guarantees which the banks demand and the paperwork to be filed, you have to question if the banks are really interested in helping new customers succeed. More pertinently, you wonder why the mandarins in Jerusalem have allowed this system to thrive. Undeclared conflicts of interest?

The lesson is simple. If Mr Lapid really wants to reset the economy, do something for budding artisans and entrepreneurs which will impact positively on growth, he needs to address quickly the needs of small business….which makes up over 95% of most economies around the world.

24 March 2013

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Categories: Afternoon Tea in Jerusalem, Business, Israel

A well-tweeted article on LinkedIn last week by Michael Lazerow pointed out the crucial need for business leaders to be able to focus. “If an entrepreneur (or CEO in general) can’t name their top 3 priorities without hesitation, how will the rest of the company know?”

I think most of us can agree on that. But how to focus? How to identify what is the problem?

I would like to tackle the subject from another angle. All of us cry out in pain. It can be physical pain. It may be a pain that something – in life, in business – just ain’t working right. Either way, this is leading to some hard, internal grief, which we do not like.

However, quite often, if we are truly honest, we become so tied up with the immediacy of what is going on around us, the plot escapes us. We lose sight of the key issues. We run about putting out fires rather than making long term decisions. And how true that is in commerce and business.

Everything has to be done at once. Cash flow pressures throw us around that we do not know whether to rush to cajole a client, appease a bank or ignore a supplier. Production lines need maintaining, but you need to spend money on raw materials. A new sales person has to be trained, but your car has broken down. And so the list goes on.

How to list the issues in terms of importance and what to deal with first? For all the horrendous problems of difficulties, has the CEO identified the key issue? In the case above, it was an inability to manage their time efficiently.

Yesterday, I was reading about the biblical story of the children of Israel as slaves in Egypt. In the book of Exodus, it describes how they called out in pain. It would be simple enough to explain that the cry was due to the physical tasks that had to be performed. Yet, commentators teach us that it took a “Higher Authority” to listen to them and realise that the true pain was the fact that the men were no longer able to have marital relations with their wives. To such depths they had fallen, but could not pinpoint their agony.

In a modern sense, this “Authority” is a mentor. As we know, a business coach is somebody who can listen and see the whole picture and then suggest a way through the dirt. Obvious? Maybe, but how many of us, when facing some serious troubles reach out for help?

21 March 2013

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

Israel has a new Minister of Finance in Yair Lapid. His father was a political journalist, who ended up in politics and entered government. Lapid himself was also a senior journalist. He created a pressure group, converted into a political party and is now the second largest group in the Knesset (Israel Parliament). Does this mean he will be able to look after the country’s accounts?

Lapid has no government experience. In an interview a decade ago, he admitted his ignorance on economic affairs. He is wealthy, although he advocates a platform for a more equal distribution of the burdens of society. Contradictions abound.

The job of the new boy is not helped by Israel’s economic structural problems. The previous government worked up a black hole of around 15 million shekels – say US$4 billion. Yet, as the calendar ticks over towards the end of March, no budget has been prepared for 2013.

In addition:

The government urgently needs to find a replacement for the internationally respected Governor of the Bank of Israel, Professor Stanley Fischer, who is leaving the position in the summer. A poor choice here will expose the shekel to market fluctuations.
There is still genuine concern that the price of housing in Israel is creating an economic bubble. It is generally agreed that young couples are being priced out of the market and that many banks have too great an exposure to potential bad debts.
Too many vital sectors of the economy are protected by vested interests. For example, the port of Ashdod is considered one of the most inefficient and expensive in the world. And yet it is an open secret that vast proportions of the workforce are related to each other. in a separate sphere, the Ministry of Agriculture ensures that tariffs make imports of fruits and vegetables near impossible, keeping prices high to the consumer.

These are just some of the challenges facing Lapid. As often is tha case, the list is near endless. Depending on your political allegiances, many argue that the ultra orthodox and / or those living in the West Bank are receive resources beyond their numbers and contribution to society. Small businesses have been squeezed int he past few years and need help.

Lapid will be forced to look at all these issues, sooner rather than later. Yes, he has an agenda. And here’s the catch. If he tries to alter too much and too quickly, he is likely to fail. Economies are complex. In the era of globalisation, there are many unforseen external anomalies, which computer models cannot predict and an a background in economics cannot prevent.

Where Lapid can make a difference is to set himself gradual targets. The most effective changes are not necessarily immediate, but take place over time and with as much prior general agreement as possible. If Lapid was able to learn that from his father, then he has the opportunity to make a great impact as an untested Minister of Finance.

17 March 2013

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

We all know the phrase that the customer is always right. We all at least pretend that we do our level best for our client. As I wrote last week, we all make a claim to strive for excellence. And we are surrounded by books and blogs about how “to go above and beyond the call of duty to provide customer service that truly stands out.”

However, when we set about on some introspection, especially over customer complaints, the truth is often very different, if not painful. We just cannot be bothered. Excuses abound – we do not have the time, deliberately forget about the mess, do not think the person is worth it, and ……….well, the list is very long.

As a business mentor, I am often asked by my clients what they should do, as they recall a story when a customer feels dissatisfied. Sometimes, it is told out of despair or frustration, but with little intent to follow up. On other occasions, the person just cannot see through their fuzzy thoughts in order to provide a solution. Many just run for a financial compromise – a heavy a discount or voucher – as if that is a universal cure.

The main question is what are we trying to achieve? To be quite cold, I believe that the answer is extra revenue. Maybe we are seeking to convert a no-sale into a purchase. Maybe, we are in the area of damage-limitation. And yes, we want to feel good ourselves. However, much comes down to the money factor.

Last week, a new business owner in central Jerusalem hit a classic pitfall, when on a specific day they had too many customers that could be handled properly. Eventually, somebody took offence and immediately let this be known on social media. Ouch!

What to do? I suggested reaching out to the troubled client. After all, this is the last thing you need when you are at the beginning of the commercial journey. However, little did we know that just as we were discussing options, another blow was in the offering. A blogger was writing a negative piece and about to publish, which the owner was to find offensive and inaccurate.

Significantly, they did not lose perspective. Instead of ignoring the problem and with my words in their head, they contacted the blogger, met up and talked / communicated directly with each other. I assume that it will not be a surprise to hear that both sides learnt a few facts about life and what they have to change. Oh, this should result in few extra, happier customers.

My client had gone out of their comfort zone in order to make a difference on behalf of others. There had been no guarantee of success or reward, but they had done something for somebody else, willingly. That is what pushes businesses on and up to the next level.

15 March 2013

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Categories: Business, Israel, Jerusalem

President Barack Obama will be visiting Jerusalem next week. I assume that he will be making key speeches, cajoling / indicating / imploring leaders in the Middle East not to bomb the guts out of each other.

Allowing for the fact that he will also be travelling to the Palestinian territories, he will be on Israeli soil for less that 48 hours. And yet, part of that time will be taken up by travelling to and touring a special exhibition on Israeli tech. And you have to ask, why?

Yes, Israel has been called the start up nation or the Silicon Valley of the Middle East, very flattering for a country of barely 8 million people all-in. However, there is another factor, just as important.

To create this success, you first must create an environment that allows you to accept new ideas and to be able to develop them. This requires an open and tolerant society. And maybe the best way to measure that openness is through the number of Nobel Prizes attained per capita – Israelis have received ten awards since 1948. As if to emphasise the point, Israel was recently ranked first in the world in research and development intensity.

To quote Dr. Dan Schechtman, a technology professor from Israel and who was awarded the 2011 Nobel Prize in Chemistry for the discovery of quasicrystals. “What does a Nobel Prize winner has to say about entrepreneurship? First and foremost, he emphasizes that “entrepreneurship is the only way to maintain long-term peace.” Unfortunately and crucially for Schechtman, the combined number of all the other winners in the Middle East region is less than ten.

From here on, I will quote an abbreviated form of the official government’s press release in Jerusalem, which explains the tech ‘on show’ to the American leader. It makes for fascinating reading and is an eye-opener for potential investors.

The products that were chosen are in the fields of renewable energy, the war on traffic accidents, medicine, search and rescue, and robotics. They are located at the “Israeli Technology – For a Better World” exhibit at the Jerusalem Science Museum.

1) In the field of energy alternatives – Phinergy. The company has developed an aluminum-air battery designed for electric vehicles, and which allows a significant increase in travel range (three times that of a regular electric vehicle). The technology will allow for a reduction in global oil consumption. The system is based on metal air technology, including aluminum air and zinc air. A metal-air battery features an air-electrode that breathes oxygen from ambient air, instead of the conventional cathode. That is, the battery consumes the required oxygen from the air, rather than having heavy materials that bound oxygen inside it. Metal-air batteries therefore have a huge potential for delivering high capacity with low weight.

2) In the field of the struggle against traffic accidents – Mobileye, a global pioneer in developing Advanced Driver Assistance Systems (ADAS), is to develop and market vision-based systems that will help drivers keep passengers safe on the roads and decrease traffic accidents by warning about dangerous situations and even braking the vehicle when necessary. To date, Mobileye’s technology has been implemented and launched by BMW, Volvo, GM and Ford in over one million vehicles. Beginning in 2014, the system will become standard for new vehicles in Europe.

3) In the field of medicine – BNA technology by ElMindA, which provides a non-invasive tool for the visualization and quantification of BNAs of specific brain functionalities, disease development and rehabilitation from injuries, reactions to treatment, psychiatric and neurological problems, and pain.

4) In the field of search and rescue – robot snake, which is designed to enter spaces in collapsed structures with minimal disturbance. The robot thus assists in location and rescue operations. The robot is unique in its manner of crawling and is very flexible thanks to its great number of segments. Each joint is motorized and has a computer, sensors, wireless communications and batteries. Its head carries a camera. Thanks to its flexible structure, the snake is able to crawl through wreckage without causing additional structural collapses and provide vital information about inaccessible areas, including the status of people who might be trapped, the location of hazardous materials, etc.

5) In the field of medicine – Rewalk seeks to give persons with lower limb disabilities, such as paraplegia, an experience that is as close to natural walking as possible. The ReWalk exoskeleton suit uses a patented technology with motorized legs that power knee and hip movement. Battery-powered for all-day use, ReWalk is controlled by on-board computers and motion sensors, restoring self-initiated walking without needing tethers or switches to begin stepping. ReWalk controls movement using subtle changes in center of gravity, mimics natural gait and provides functional walking speed.

6) In the field of medicine – MiniDesktop, whose headset has been developed that enables computers to be controlled by brainwaves or facial movements. The computer is controlled without a mouse or keyboard by means of a headset that images the user’s brainwaves from 14 separate points. The system, which was developed by three software engineering graduates from Ben-Gurion University of the Negev, is designed to serve the physically handicapped who could not otherwise operate a computer or other devices.

13 March 2013

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

Earlier this week, I wrote how a CEO is Jerusalem is “constantly listening and trying to innovate”. He is looking to provide his customers with that “feel good” factor. Crucially, he is aware that whatever that ‘factor’ is today, it will change by tomorrow.

With a sense of some ironical timing, the subject has already come up on two further instances.

First, I met up with a client of mine, who was asked to describe the service she is trying to provide to her target market. What was interesting about the response was how it was centred around what was important to her.

Yes, she brought some key and essentials values. She even mentioned the ‘feel good’ phrase. Fine, but the overall position was controlled from her perspective. She had failed to appreciative the psychology of why a prospective client may be getting in touch. She had ignored what are the real motivating determinants.

Look at it another way. A shopping mall is not just a convenient place to find all your favourite retail outlets under one roof. The owners of the premise have designed it so that you can have a complete or perfect ‘experience’; background music, easy access to different floors, rest benches, and plenty of friendly eateries. The thought process goes the extra mile on behalf of the customer, trying to understand their needs.

Second, I have to admit, I did not do my best recently. I was asked to make a submission, only to receive an email, which explained what I had failed to clarify. My initial reaction was full of expletives, anger directed at the bureaucrat. Eventually, I took a deep breath and read the comments in detail.

The anger mellowed to annoyance, which I found that I was turning it towards myself. It became cringingly obvious to me that I had rushed the work and cut corners, hoping to ‘get away with it’. When I finish posting this piece, I will have to invest extra time in fixing something that should have sailed through. There is a lesson here for all of us.

So what is doing your “level best’ all about? How can we convince ourselves not to be so lazy? Have a look at this Hollywood clip for 6 minutes. https://www.youtube.com/watch?v=-vB59PkB0eQ&feature=youtu.be

10 March 2013

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

As a mentor, I hear the theme so often, especially from newer clients: “I want to be the best,” they proudly utter. And when I ask them what that means, the answers are less forthright.

The subject came up again yesterday in a most unusual way. I was reading a commentary by Rabbi Ari Kahn, where he noted that the Ark in the Sinai desert and the two Temples, were all filled with increasing amounts of gold. However, the level of grandeur was not commensurate with the level of holiness. Why?

The Ark, often considered the most special, had been constructed by a man named Bezal’el, whose entire being was permeated with a holy spirit. In modern parlance, Bezal’el was empowered and thus determined to create something as brilliant and as appropriate as was possible.

Doing your best or striving for excellence does not put you above everyone else. It does not secure sales. It does not guarantee success. So, why is it so important? Why do mentors encourage people to consider the concept?

There are many websites, which debate the subject endlessly. They rush to quote Aristotle, who opinionned that “excellence is not an act, but a habit.”. For all that, if it is not the elixir of enduring commerce, what is it? What did Bezal’el understand thousands of years ago that most of us still fail to grasp today?

Let me try to explain through a true story, also with a slightly religious angle. I recently popped in on ‘Joe’, the owner of a large shop in central Jerusalem. We had first met when I had attempted to recruit him as a client, but we have remained in touch. With the help of a different mentor, he has reduced his stock, improved sales, redesigned the interior, and………..well, life is beginning to feel good for him.

Joe has no academic background. He has a small back office. He has little professional literature, mostly religious books, as he has caught the ‘spiritual bug’ in recent years. However, lying on a shelf by itself was a book entitled “Excellence”. It said everything for me.

Joe knows that he does not provide all the stock his customers need, but he is constantly listening and trying to innovate his lines on offer. Joe realised that the appearance of the shop was unattractive, especially to the eye of a female – his main clientelle. That was dealt with. Staff receive training. Prices on key products were deliberately dropped to ensure he was dominant locally. And Joe still looks to improve.

What does this add up to? Whoever walks in to the shop will quickly realise that they are associated with an establishment that genuinely wants to help and toplease. The customer will undergo an enjoyable retail experience that will direct them towards making a purchase and to feeling good about it.

It takes a passion for excellence to achieve that result.

8 March 2013

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

Is there such a thing as the traditional Jerusalem breakfast?

A few years ago, I returned to London, where I grew up. Leaving my hotel room and going past the dining room, I was struck by a smell that immediately recalled school breakfasts; rashes, greasy sausages, fried eggs, drained down by tea with lots of sugar. I hasten to add that I did not eat it at school, but you can never forget. You know it at the instant. Is there a Jerusalem equivalent?

Possibly the first place to start is the best-seller cookbook from Yotam Ottolehgji and Sami Tamini, “Jerusalem“. It is a great read. Significantly, the opening section is on vegetables. The spices ooze out of the pages. However, there is no specific heading on breakfasts nor is there a mention in the index.

Moving on, I remember that when I first came to the Holy City over thirty years ago, you felt that people were eating falafel in pita bread morning, noon and night. The taste of the frying oil was smothered and hidden by the heaps of humus and a hot tomato spice. As local brands of corn flakes were expensive and revolting, this seemed to make a (relatively) healthy substitute for the morning starter.

In 2013, the world has changed. As bloggers 21C noted: “Lonely Planet included the shakshouka at Jerusalem’s Tmol Shilshom café on its recent Top 10 list of the world best breakfasts.” Actually, for many from Europe or America, shakshouka is simply loads of poached eggs with lots of pepper and more tomato-type spices. For novelty, it often comes served in ovenware. However, Ottolenghi himself traces the origins of the delight to Tunisia.

“Morgens” is a brand new restaurant, just off the bubbly Emek Refaim Street and not far from the magic of the Old City. The owners are hoping to latch on to the theme that Jerusalem has been and remains a very cosmopolitan city, attracting influences from all over the world. They offer eight different types of breakfasts, including a Mexican alternative and a highly delicious ‘Garden of Eden’, which is not recommended for those watching the calories.

Of special interest to me was the first item on the menu – an Israeli breakfast. I will leave my readers to go and sample the delights of Morgens, which is already attracting a steady clientelle. For me, what I like to see on my plate is first and foremost a tomato, cucumber, lettuce and red onion salad, finely chopped, doused with a careful balance of lemon juice and olive oil. I insist on a sweet tahina to be available, according to the taste buds of the moment.

To the side should be a healthy supply of large green and black olives, preferably home pickled. Next to these ought to be a portion of white cheese, Lebana, mixed with a light coating of zatar – a form of wild thyme – and olive oil. A helping of beetroot,seasoned with fresh parsely is a must. And the final item is a lightly fried egg, packed with green herbs such as oregano, basil and even mint. Naturally, the pitta (or brown bread) should be freshly baked.

As for the hot drink, clearly black coffee or tea with mint should be a must. At this final stage, honesty forces me to admit to a small degree of hypocrisy. Having grown up in the UK, I love my morning tea with milk. Some habits are too good to do away with, even in the holiest of cities.

5 March 2013

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

In the final three months of 2012, the pace (of economic growth in Israel) was its slowest in three-and-a-half years, growing at a 2.5% annualized rate, compared with 2.8% in the third quarter……. A year ago, gross domestic product was expanding at a 3.5% rate.

Not very optimistic reporting. Add to that the perspective of the Governor of the Bank of Israel and notable international economist, Professor Stanley Fischer, who observed that the country’s performance is going to be hindered by faltering economic performances in Europe and in the USA. Then yesterday, China announced a budget that restricted annual growth to a relatively low figure of 7%.

What hope for Israel in 2013, an economy that looks to exports? Well, actually, quite a bit.

To start with, Fischer recognises that “we expect 3.8% growth in 2013 and an important part of this includes the start of natural gas production, which will start flowing from the Tamar drilling and that will add 1% to the GDP in 2013.” Then compare that stat of 3.8% to many other countries within the OECD and you will see how Israel is not doing too badly.

Other recent macro economic data is encouraging. After a clear dip for much of 2012, new housing starts are at a ten year high. And January 2013 saw a slightly unexpected drop in unemployment to 6.5%.

For me, the immediate black spot is the cabinet itself and the lack of central direction. The country has been in ‘election mode” since the late summer, at least six months. This runs through from the period of ‘will there be an election?’ to the current maze of misinformation regarding the formation of a new government coalition.

When I ask ministry officials when resources will be released to new projects, they refer me to the newspapers and the talks between the various political parties. One headline from today’s press implies that the Prime Minister will try to create a new budget within 10 days. Not exactly a professional approach. In parallel, the PM has evidently told his two new coalition partners that they can choose between them who will have the Finance portfolio and who will fill it. A bewildering abdication of responsibility.

None of this pathetic nonsense detracts from the basic stability of the Israeli economy nor the dynamism of innovation that underpins it. However, let’s be honest. I bet Fischer did not factor these local instabilities in to his predictions for 2013. They will impact negatively in the short term.

Pages

How a business mentor can help you live your dreams

A holy lesson in high-flying openess

Mentoring, humans, communicating – a treasured skill

What we can achieve in 65 years

Enchanting, Pink, Sales

260 overseas research centres in Israel can’t be wrong

Why your profit is stuck in your stock

How much does procrastination cost your board room?

What a business coach can learn from an ancient biblical story

1 decade, 772 exits, 8 million people

Israel’s Prime Minister finally admits (after the election) his economy is not performing

You are a CEO and you think you know your problem

Is Israel’s new Minister of Finance an economic hero?

Mentoring – showing how your client can go one step further in business

Obama, technology and the Jerusalem mindset

Understanding excellence in business – a second look

What is ‘excellence in business’?

The search for the traditional Jerusalem breakfast

Prospects for economic growth – Israel 2013

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