Afternoon Tea in Jerusalem Archives - Page 53 of 75 - Michael Horesh Business Coach and Mentor

25 February 2011

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Categories: Blog, Business, Israel

“Help! I have no idea how to make a presentation.”

As a mentor, you hear it all the time: What should I say? Can I read from my slides? What if they don’t like my ideas? I am no good at fancy graphics? I think my printer is on the blink!

Any excuse, which will prevent the petrified presenter from going out and doing the one thing they are good at – telling the potential audience just why they have a cracking idea that deserves a chance! Ironic.

There is no shortage of advice on the web. Have a look at “5 tips for a great presentation“. In a nutshell, it is all about telling a concise and enticing story. And like everything else in life, in order to do it well, you have to practice, repeatedly.

Simple, no?

I used to be part of the frightened crowd. Then, about 15 years ago, I saw my boss at the time give a talk on a subject about which he knew nothing, but I was well-informed. While he missed out key points, but the audience found it fascinating. And I had to ask myself what made him such a hit.

He had stuck to his theme, had some clear slides, and spoke fluently – at least as if he knew what he was talking about. Simple? Yes.

This week, I had the good fortune to attend a seminar in Tel Aviv, cohosted by Profeel. This is a new outfit, which has brought together a group of business mentors from different backgrounds. (I declare that I am one of them). There was guest talk from “Debate Company“, which has a track record in helping executives deliver their message.

The discussion revolved around the importance of counter-intuitive messages and how to project them. It is not just good enough to talk to your audience. You need to be convincing. But how?

The short video on Debate’s website provides an interesting check list:

Be brief
Share your experience and knowledge
Think how your presentation will help lead the audience to the outcome you want
Look for impact

I invite to view the other short clips, probably the most practical offering I have yet seen on the subject.

And here’s a well-known secret. In order to deliver a good presentation may take a heck of a lot of preparation, but we are all capable of getting it right.

21 February 2011

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Categories: Business, Israel

A 7.8% growth rate certainly sounds like an impressive figure, and something to smile about….However anyone who analyses all the components of growth in the economy, must reach the conclusion that we are on the way to something far from happy, and that there is more than one reason for any finance minister to express concern, rather than boast of a situation that recalls economies that have recently gone swiftly from boom to bust. The picture that emerges from the growth figures released today is not one of a healthy economy, but the picture of Spain in 2007.

Thus wrote Avi Temkin a few days ago, one of Israel’s leading economic commentators. And with some degree of ironic timing, Israel’s President, Shimon Peres, is commencing today a state visit of Madrid.

Temkin may have a point. Factor in world food prices on the up and up. And instability in the Arab world is almost certainly going to see a rise in oil prices, which will have negative economic implications globally. However wonderful the statistics, the reality may be otherwise.

But Israel is not alone in facing an uncertain future.

The US stock market has doubled, but so what? As somebody commented:

The reason is money printing, period. Essentially what is happening right now is the Fed is printing money and its being handed out to people to spend and buy assets. That has propped up asset prices. When the money printing ends, what is left are horrible fundamentals of a US economy with a decent probability of collapse.

If these analysts are accurate, it will not just be Israel that is in a pickle. If America were to sneeze, just imagine what kind of cold Europe would catch, with Britain and others still feeling fragile after the credit crunch.

By the end of this week, we will know if the Bank of Israel will raise interests rates sharply. This will be one of the first signs of central authorities beginning to act in order to prevent an all-too-familar mess.

19 February 2011

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Categories: Business

It has happened to me a few times over the past year. In one situation or another, I have placed an opportunity before a company, where they have been encouraged to spend a relatively small amount of money in order to ramp up sales or secure an investment. Eventually, the CEO has ducked out, often claiming that they could not see the added value.

On face value, that is fair enough. Putting it bluntly, the CEO asks: If I put in $1, will I get $2 back reasonably quickly and painlessly?

Today, risk models are all over the place. The Financial Times newspaper is sponsoring a series of events on the subject. Software is around in quantity for the small or large enterprise to help with the decision-making.

However, there is another element at play in these thought processes – the emotional layer. I have frequently written how some people are too afraid to make a decision. I have discussed the “what if” scenarios that get in the way of making a clearly defined decision. So many of us are expecting the worse for no logical reason.

A similar factor is a burning desire not “to let people down”. How many managers are so caught up and pegged down with former scenarios, where they perceive that they have failed others. Whether they have judged correctly or not what did actually happen, that perspective is hindering how they should proceed currently.

It seems that leaders who “pay attention to how others influence their emotional states” are also the ones who reject unnecessary risk, yet know when is the right time to accelerate beyond commonly accepted boundaries. We find these leaders are able to take responsibility for grim situations, and are willing to risk their status and comfort in order to stand behind bold, new ideas that will keep their companies flourishing.

With hindsight, could I have handled my potential clients differently? Maybe. On the other hand, I cannot research all the external influences in advance.

In parallel, for all their bravado as CEOs or senior management, it is interesting how relatively few people in business make a decision without understanding that their thought process is not always based on commercial factors alone. And this ignorance or lack of control is costing a lot of people a lot of money.

18 February 2011

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Categories: Business, Israel

In the past year, Israel’s economy has managed to defy both the global economic crisis and the worsening security situation, posting an annualized 4.4 percent growth in the last quarter…

Impressive. Now here’s, something even more amazing. That quote comes from Newsweek, almost exactly one year ago, in early March 2010. As for the economy at the end of 2010 itself, note the similarity in the description.

Israel’s GDP rose at an unprecedented pace of 7.8%,on an annualized, seasonally adjusted basis, in the fourth quarter of 2010, the Central Bureau of Statistics reported today. GDP rose by an annualized 5.4% in the second half of last year, after rising 5% in the first half, and 3.4% in the second half of 2009.

Direct investments continue. Kaltura, a developer of open source online video platform, has just secured US$20 million. The government is ploughing around US$100 million into incubator companies. Everything is coming up roses …but there again, maybe not quite.

At the beginning of the week, Bibi Netanyahu, the Prime Minister, was forced to make a series of tax concessions. Petrol, water, transportation will all come down in price. So far, the budget framework, which was passed only recently, has not been too disjointed. But it is clear that the government will have to make cut backs in order to finance the tax changes.

However, it is a mute point if the threat of strike in the public sector will force more concessions from the politicians over the coming month. Talks with the Histadrut, the trades unions, are not progressing smoothly.

And this pressure group has a point. The price rises hit the lower and middle classes. Tax comparisons continue to show how the latter in particular are being squeezed on all sides.

And that is not all. Let’s start with something simple like inflation. The official stats point to price stability, well within the limit set by the Treasury of under 3%. However, given the rise of oil prices, commodity prices in general and poor crop growing weather, prices are on the move upwards.

These factors will only encourage the wonderfully cautious Stanley Fischer, governor of the Bank of Israel, to raise interest rates. Correct he may be, but this will impact negatively on future economic growth. More squeezing of the weaker sectors.

Where next? Growth will probably continue, but not necessarily at the same pace. Will the politicians care? The fear is that they will bury their heads and gloat about wonderful economic stats.

17 February 2011

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Categories: Business, Israel, Palestinians

The Economist magazine has made great efforts to predict which Arab country might be the next to fall after Egypt. Syria? An emirate?

More intriguing is the “Shoe Thrower’s index, which aims to predict where the scent of jasmine may spread next.” Simply using factors such as youth ratios, unemployment and corruption, the Economist has attempted to which autocracy could go next, assuming that the bug spreads.

It is interesting how Egypt, Libya and Yemen figured at the top. There again, Tunisia is placed in the middle, close to Jordan, another potential time bomb, and Bahrain below that. So, the index makes for a cute exercise, but it is not complete.

Marxists and co are having a field day. Do the violent street protests signify a return of proletarian revolutions, with the proverbial spark spreading virally via facebook? A man burns himself in a backwater town in Tunisia and within a month, billions of petrodollars become meaningless, as leaders in Iran, Bahrain and Algeria hurry to learn the art of damage limitation.

So where are the protests from the Palestinians? Without claiming that Israel is the perfect country – who is? – it is all very quiet inside the Ramallah/Gaza axis. True, Abu Mazen’s cabinet reshuffle is seen as a defensive response rather than a move from strength. And the Palestinian Independent Commission for Human Rights issued a statement on 6th February:

concerned by the restrictions on freedom of expression and peaceful assembly by Palestinian security agencies, which have banned peaceful protests by Palestinian citizens in solidarity with the people of Tunisia and Egypt. On 2/2/2011, the Palestinian police banned a peaceful protest which was organized in the city of Ramallah and arrested a number of journalists and participants for a short period of time.

In Gaza, it is possible that the situation is still too raw for change. “The new wealthy class — many associated with Hamas — as well as established capital owners are concerned about keeping their money inside Gaza, preferring to move it abroad….even to Israel”

As for the Jewish State, the Netanyahu government has backed down on some price rises. There may be a general strike in two weeks. But there are no mass demos, coloured by riot police. Why?

Dr Robert Brookes is leading blogger in the field of psychology. With amazing irony, his latest monthly posting is titled “we all want out voices to be heard“. He concludes that: –

Self-determination and autonomy are basic needs that exist throughout our lives, …… Intrinsic motivation and democratic ideals flourish when environments encourage and support one’s voice being heard. In all of our institutions, whether in schools or in various organizations or businesses, those in leadership positions must ask if all members truly believe their opinion is respected and that they are afforded a certain level of choice and autonomy. This kind of respect does not imply a loss of authority on the part of leadership, but rather the cultivation of a climate in which leadership will be honored for validating the input and voices of others.

For all its faults, and despite of a very real existential threat for all of its modern history, Israel has a free press, freedom of worship and a secret vote for all. The country is at the heart of the industrial revolution in telecommunications, with over 50 companies at this week’s World Mobile Congress in Barcelona. Open source tech and apps are everywhere, near impossible to block.

I know that many, possibly even most, of these demonstrators in the Arab World do not like Israel. But for all their hatred, are they telling their leaders that they are actually envious of the way the Holy Land is ruled? Israel is a democracy.

And maybe there is another message here for world leaders. They have often thrown shoes at Israel, claiming that Jerusalem’s intransigence on the Palestinian issue is the core of instability in the Middle East. The Economist’s index is telling you that it is time for a review of your mindset.

11 February 2011

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Categories: Business, Israel

“The rules of the game have been rewritten” exclaimed Luke Johnson in the Financial Times.

The world of business has changed dramatically since the 1980s, and the rules of the game have been radically rewritten……An important factor has been the all-pervading influence of the internet. ……Various consequences flow from this digital revolution that affect the very nature of a business. It means you can test an idea quickly and cheaply and, if the trial does not work, you can reinvent it or just shut it down.

24 hours after reading this, I found myself mentoring a very talented young lady, who intends to take her hightech company global within 24 months. When I say talented, she has had a great career to date in the arts. As for her firm, despite a struggling website, they have generated some initial income.

This lady is very serious. She has already started and sold a couple of small (non hightech) enterprises. Like Master Zuckerberg, and she is only a few years older than him, she has hit on a simple idea. And it seems that nobody is in that space, yet.

What is she lacking? A little bit of initial guidance and a small amount of financial backing to support site design and promotion. Initiative and determination, what you are not taught at Harvard Business School, are in no short supply.

Luke Johnson referred to Mark Zuckerberg, as an example of somebody, who “can create a 500m-strong community with Facebook – employing just 1,000 staff. Facebook is also an example of how investors are willing – in certain circumstances – to back projects that have minimal revenue, following a belief that a lucrative business model will emerge in due course, as it did with Google.”

I often set homework, and this time I pronounced a two hour assignment. I told her to watch the film, Social Network.

10 February 2011

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Categories: Business, Israel

Israel’s Ministry of Tourism will proudly tell anybody willing to listen that 2010 was a record year. 3 million overseas visitors were recorded for the first time ever.

As for January 2011, the figures were 17% up on last year, as around a quarter of a million guests entered the holy land.

In a country of 7.5 million people, these stats are significant. Estimates place around 100,000 people are employed directly from tourism, with another double that employed indirectly. Altogether, this is worth around 33 billion shekels or $9 billion.

This week’s annual International Mediterranean Tourism Market exhibition has been larger than ever. Over 300 participants from 35 countries have turned up. All very encouraging, but so what’s in this for a potential investor?

The answer is quite a lot.

First, infrastructure: New hotels are required in most of the major centres, including Jerusalem and the airport. The Tourism Ministry has publicly expressed its commitment to a new port complex in Ashkelon, the setting up of several golf courses, the expansion of the filming industry, and much more.

The Israeli government has not been slow in coming to the party, providing tax incentives. Eilat, an all-year-round beach resort, has benefited from a VAT-free zone for nearly two decades. As Leon Harris, a noted local tax expert points out,

Tourism enterprises may enjoy company tax rates ranging from 10% to 24% for seven to 10 years. The higher the level of foreign investment, the lower the tax rate…..

Bottom line: Israel has a reputation for a booming stock market and a great high tech basis. Now, the tourism industry offers an additional exciting opportunity for foreign direct investment.

8 February 2011

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Categories: Business, Israel

Dov Gordon is one of Israel’s leading consultants in the disciplins of management and strategy.

His workshop this week in Jerusalem focused on creating a “selling system to bring you all the customers you want”. A 5-stage approach, I was particularly interested in the middle element. “The potential customer must feel that you, the vendor, understand their needs and wants”.

There is nothing new in this psychological element. Dov’s added value was to sum up the issue in a concise manner, clearly driving home its place in the selling cycle. From there, Dov encourages the seminar participant to evaluate the tools and tactics required to achieve this vital sub-goal.

OK, but why do so many sales people ignore this part of the game?

As I write, it is Tuesday morning. However, I have already encountered two clients this week, who in effect are happy to wait for clients to come to them. Word-of-mouth, or a website hit, or otherwise will drive the next pay check through the door. In other words, the “pre nuptial chit chat” will be a brief formality, hopefully.

It does not take me too long to show them the fallacy involved in this thought process. What is of more concern is how they arrived at that juncture.

One theme that remains prevalent in many of my discussions is that of “fear”. What happens if I get it wrong? Heidi Grant Halvorson describes this as the “do good” impulse outbidding the desire to “do better”.

The irony is that all this pressure to be good results in many more mistakes, and far inferior performance, than would a focus on getting better.

And in a sales situation? There are people, who will find any excuse not to look for clients. Surely it would be better to reel in the bait, maybe even try too hard, fail, but at least you will know for the next time.

You might even learn how to understand new clients that bit better.

3 February 2011

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Categories: Business

Why do CEOs and managers fear the “4 ifs” of succeeding? Why do they procrastinate in order not to reach their vision? What holds them up?

I am a great fan of the group Coldplay. “What if” is a track that many of our intrepid managers and strategists may be familiar with.

What if there was no light
Nothing wrong, nothing right
What if there was no time
And no reason, or rhyme
What if you should decide
That you don’t want me there by your side
That you don’t want me there in your life

And so the song continues. What if only bad things happen.

Meet a client of mine. Clever, talented, modest and at the beginning of an exciting commercial venture. This week, we sketched the framework of a simple marketing scheme. He outlined what he needed to do and when. There was room for optimism that he will end up with an upsurge of orders.

Fine, I am thinking, and then I realise that he is silent. I wait for a response. More silence. I enquire what is the issue. And sheepishly out oozes the pain:

“What if I receive too many orders”?

How about jumping for joy, I wanted to respond, but my man was clearly troubled. Even so, I was not feeling generous. So, I threw the question back at him: “What if?”, and shrugged my shoulders.

Finally, after a few more moments of reflection, he admitted that maybe it would be a good thing. This was swiftly followed by another excuse as to how he may not have enough time to deal with all the new customers.

Ever the cruel mentor, I asked “what if you reorganised your day in order to give your family a higher income”? A further extended silence followed.

This is a story I hear repeated several times a month in alternative guises. I speak to colleagues, who have similar incidents to recall. Whatever the country, the age, the area of commerce, people take on career paths or set up businesses, but are actually too afraid to move ahead towards their dreams.

Why? I have yet to work out if this is a generational issue or we are all infected by an internet bug. We are great at handing out advice, but not applying it to ourselves.

For the record – pun intended, Coldplay also provides our suffering CEOs with a simple solution.

Every step that you take
Could be your biggest mistake
It could bend or it could break
But that’s the risk that you take

Oooooooh thats right
Let’s take a breath, jump over the side
Oooooooh that’s right
You know that darkness always turns into light
Oooooooh that’s right

31 January 2011

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Categories: Business

For those of you interested in business planning and strategy, I have just come across an informative, inspiring case study.

What is a vision? It’s not as mystical or out there as it sounds. A vision, quite simply, is a picture of what success will be at a particular time in the future.

Ari Weinzweig set up a deli in the early1980s. Today, he employs 500 people in 8 different sectors, drawing in nearly $40million annually. And his recipe for success?

Complete the visioning process, and you’ll have a clearly articulated end for your organization—something that won’t change every time the market or your mood shifts.

Weinzweig’s description of how it takes a mere 30 minutes to complete most of the vision-making process is close to bizarre. So, why can’t most people follow his tried and consistent repeated recipe for success?

A few months ago, I helped to structure a deal, which stretched across continents. The contract was designed to secure European market entry over a few months for a small enterprise. Cool…..except that the CEO of the vendor in question did not see immediate results.

Our CEO felt that time and money was being invested, but dollars were not rolling into the bank account. At what was estimated to be half way into the set up process, our CEO pulled out.

It was their reasoning that annoyed me, which seemed polite but not very convincing. So, I prodded a bit to find out the whole story. Reading between the lines, you could almost hear the hidden shouts of anxiety, such as: –

If I do not succeed, what will people say?
If I succeed, will I keep control?
If I only partially succeed, is that really good enough?

I felt that the top executive was trying to convince themself: “If I put off important decisions, I may retract from my vision, but my life will become better?”

We can call this thought process the “four ifs of self-perpetuating doom”. Convenient. Pride reestablished. No pain. And the brain is at ease.

Minor problem – no gain. Which side of the mind is our CEO listening to?

And I see this time and again in mentoring. Earlier this week, I sat down with the owner of a small leisure business. “What should I do next?” I was asked several times by an anxious client and owner of a cash flow crisis.

By the end of the session, the client had made some phone calls, which she had put off for some days. She had created the structure for a new marketing team. And she had called one of her own customers.

She even looked pleased with her efforts. After all, she had made a major stride towards obtaining her goals.

Why had she not done all these things prior to our meet up? In fact, she had tried to introduce other tasks, which would have put off these decisions, just like our CEO.

I can’t say for sure. But I do know that when she first realised what she had to do, there was an element of fear on her face. The “four ifs” were back again.

27 January 2011

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Categories: Business, Israel

From the top business schools to the extremes of the internet, we are flooded with material about what makes a good leader.

Be open. Listen. Appreciate those around you. Develop an ability to make decisions under stress. Hope you have the right biological make up? And who knows what else.

And every journalist loves it when a leading personality refers to ” a crisis of leadership“. I typed the phrase into google, and the first page brought responses from Eire, the USA, Nepal and Japan. I mean, would we know what a good leader is even if they were to walk into the room right now?

Pilots in the Israeli air force are considered a very elite sort of group; physically strong, educationally bright, with an ability to perform well under adverse conditions. They are never photographed face-on for security reasons. So, they don’t need any extra leadership skills, do they?

So, it came as a surprise to read in the Hebrew press of a new approach to training for the “lead” plane or helicopter in a squadron. The idea is to allow the pilot to act as the chief-of-the -airforce. It is a concept by a multipurpose team, consisting of former pilots, psychologists, sociologists and others.

Is that an anathema? Not necessarily. What happens if pilot is able to use all, but all , the resources at his disposal? That means exploiting full knowledge of himself, of his plane, of his surroundings, and even the control tower.

A helicopter pilot in the article described a battle scene from Lebanon, when a discussion broke out whether or not to carry out a rescue mission. Meanwhile on the ground, the lives of soldiers were at risk, but there was no easy flight path in or out. The pilot took responsibility for the situation, assessing all known factors. (The mission was a success).

Not everyone can do that in every situation. However, there is a clear lesson from this study.

Empowering your colleagues (senior and junior) to learn and to initiate, through clear established lines of guidance, can lead to effective results for organisations.

24 January 2011

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Categories: Business, Israel

Mobile tech, software, cleantech, nanotech, etc – Israel has played a leading role in all of these mini industrial revolutions. Israeli hightech accounts for over a third of the local economy’s output.

In the past year, some analysts have been wondering if this “boom” can last. After all, so few companies have gone on to become mega corporate commercial successes. Seed money appears to have dried up. Some export markets, particularly in Europe, have yet to fully emerge from the credit crisis, possibly threatening future growth.

There again, maybe the next chapter of the story will be more positive than ever. Over 50 Israeli companies took part in the recent World Mobile Congress. Intel is now looking to fill an additional 1,000 positions in the country, Celltick has announced plans for 100 new posts. Multinational based in Israel, such as IBM, are rushing to register patent.

These are not isolated islands of success. Only yesterday, Wells Fargo announced that it intended to raise its investing presence in Israel.

And a concrete illustration of what can be achieved was given by “iwaymobile“, a start up led by an investor and a former mayor from a poor development town. After 3 years of quiet development work, iwaymobile has yesterday launched an internet system for cars. The geek websites are twittering the news all today.

If there is a bottom line in all of this, it probably focuses on the word “innovation”. Israel is a society that encourages people to think beyond problems. This means that in tandem with sensible montary and fiscal policies, the pioneers in hightech know that they can continue to progress safely.

23 January 2011

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Categories: Business, Israel

The human body is a complex item. Even today, we do not fully understand how the brain operates, and we are full of proteins that have yet to be identified. We are told that only 20% of everyday tablets like asprin ever reach the target spot.

Much the same can be said about national economies. They are nearly impossible to micro-manage. You have to treat all parts with respect and still keep monitoring just in case.

Greece, Ireland, Portugal and even Spain are classic examples of countries, which relied on the “good times never ending”. And there are fears that Belgium may join the list. The Economist has led a discussion of senior analystson the topic; even under a restructuring policy, some of these economies (and their citizens) have a lot more hardship to endure before they see happy days again. The doctors had failed

Why is the Israeli economy different?

Zvi Eckstein is the deputy governor of the Bank of Israel. Speaking at a conference in London earlier this month, he listed the strong points of the economy. These included: –

The strength of the high tech sector
Decreasing debt ratio
Controlled use of interest rates in monetary policy
High savings ratio

I would add to that the discovery of commercial quantities of gas. Let us be clear, this will not be available for selling for several years, and very little is suitable for the local market. What is of note is that the Israeli government has stood firm against obvious vested interests, and will levy taxes on the profits. The main beneficiary should be a cash-strapped local infrastructure.

Dangers still loom large. The shekel has appreciated to violently over the past year, partially as a result of speculators. Last week, the Bank of Israel counter attacked, issuing a series of measures ensuring greater accountability and transparency on large transactions. The result has been a 2.5% depreciation within a few days.

Israel has to accept that it has a strong economy. As such, investors are going to want to hold its currency, a major change from the previous 60 years. The managers – politicians and civil servants alike – will have to observe and guide the Israeli economy closely as it matures into manhood, just as they will look after their own individual health.

20 January 2011

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Categories: Business, Israel

This week, I met up with three separate groups. One is a classic service provider. The second is establishing a sales campaign via the internet. The third is a very competent artisan. They all are based in Jerusalem, smothered by years of university education and are looking to ramp up sales.

I asked them what content they intended to use on their advertising space; flyers, websites, give-aways, and more. And the kind of responses that I received could be summed up by: “I want people to know how good I am at blah blah,” and off they ranted for another minute of explanations

Fair enough…until I followed up with 3 basic questions. Whatever your medium, whatever your font and colour: –

Who is your audience
What are they looking to hear
What is going to make you stand out from your competition?

These are some of the basic parameters that will drive content formulation. Two people could not believe that they had missed these 101 guidelines. A third asked me why the view of the client was so important.

These days we are inundated with marketing experts.

They are called strategists, consultants, sales’ dynamos, social media experts, website optimizers and so the list goes on. Any senior manager, struggling to raise his revenue figures, cannot fail to miss these guys. Their blogs and podcasts and tweets are to be found in every dark corner of cyberspace.

So what are my clients missing? Despite being surrounded by information and suggestions and despite being exposed to a culture of commerce, they were using a marketing opportunity as a platform for their ego. In fact, selling is all about helping and enabling your potential customer to make the correct decision.

Simple, ain’t it?

18 January 2011

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Categories: Business

As a business mentor, I come against this theme on a constant and regular basis.

I realise that the client is not progressing. I ask searching questions why they are holding themselves back. I can see them struggling to spurt out any answer, except for the one on the tip of their tongue. I prod a touch more. Silence. One more jab and……out comes the pain, sheepishly and quietly.

Basically, the client refuses to take the next step because they are afraid that it – the final product or service or whatever – will not be “good enough”. The outcome will be “OK” at best. They will be judged as MODERATE by customers and friends, and that just will not do.

I then look at the client. Some appear relieved to have finally “admitted their guilty thought in public”. Some are embarrassed. Some give me a quizzical face as if to say: “surely you feel the same way”.

So let’s consider why “it won’t do”.

From our earliest years, we are conditioned to do our best. We must be excel. The implication is that any alternative is a disappointment and just not good enough. You simply end up being “moderate”, and you would not want that to happen, would you? And that is the mindset many of my clients carry forward into adult life and hang on their professional career.

How many of us received school reports that said that “you can do better”? The teacher was probably correct. But how many of us also received a parallel comment that said: “However, what has been achieved to date is also pretty good”? If only somebody had offered me that bit of hope.

Now, let’s revert back to my clients. I ask them to look around and show me something that is “excellent and perfect”; a piece of furniture, a cup of coffee, a piece of attire, anything. And of course, nothing can be found. I then ask them to point out something that is pretty good, and here there is no shortage of responses.

Then I pose my client a very simple question: While, I am sure that the creators of the furniture or drink or clothing are striving for excellence, is what they have achieved very good? Is it acceptable?

Ergo, just because you are not perfect does that make you moderate.

As a business coach, I would rephrase that statement. Sure, it is wise to strive to be the best, but you also have so much to offer your own customers who so are “very very good”. Is that being moderate? Who cares? Go and enjoy life without any false guilt trips.

14 January 2011

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Categories: Business, Israel

Who would have believed that the shekel would turn into one of the most powerful currencies in the world.

Thus spoke PM Netanyahu this week. Over the past 12 months, the Israeli currency has appreciated 6% against the dollar and double that against the Euro. Thus, exports have become that more expensive to zones that import over 70% of Israel’s tradeable items. Can that last?

The head of the Israeli Manufacturers’ Association summed up the delicate situation very well, when he observed: “Over the past three quarters, exports have weakened and job creation has come to a halt. We are very concerned about activity in 2011 and are urging decision makers to take the necessary steps to strengthen the dollar.”

As with most things in the Middle East, nothing is simple. The problem has been caused by success. The fundamentals of the Israeli economy are very good.

This week’s press release from the Bank of Israel is full of glowing predictions for 2011. Unemployment down to 6%. The debt ratio falling below 80%. Growth is set for just under 4%.

Here’s a specific example of what I mean. The Israel tourism industry in 2010 broke the 3 million visitors figure for the first time. As for 2011, the hope is to host 4 million overseas guests, which will add another 15,000 jobs to the sector.

The 2011 budget for capital investment and infrastructure development stands at NIS 375 million, of which about NIS 205 million will be allocated to encouraging investment in tourism and increasing the hotel supply: construction, expansion and conversion of hotels mainly in Jerusalem, around the Sea of Galilee and the Galilee region. A further 3000 hotel rooms are expected to open around the country by the end of 2011. About NIS 170 million will be allocated to infrastructure development including the development of tourist cities, trails, national parks, boardwalks etc.

As with more traditional parts of industry, many of the multinational tourism groups are realising that Israel offers potential rich pickings and becomming involved.

2011 offers many challenges to the Israeli economy; achieving a competitive rate of exchange, finding a suitable tax base for an emerging energy industry, a stock market that shows no sign of cooling down, etc. Above all, the bureaucrats will need to ensure that those often-praised fundamentals remain true and transparent.

12 January 2011

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Categories: Business, Israel

Over two years on from the onset of the credit crunch and the UK banking system is still looking over its shoulder at what was. The head of Barclays, Bob Diamond, has called for “sounder and safer” bonus schemes.

“Sounder and safer” is newspeak for “how can the top guys get the money they want – maybe even deserve – without the public and press screaming stop thief?”

Here’s a cute suggesting – how about banks giving the public some value for money? Yes, this probably is a revolutionary concept for top financial managers, whose offices are so away from the ground floor that they have forgotten what reality is.

Contrast this to the Bank of Israel’s HQ in Jerusalem, not very high at all. The governor, Stanley Fischer, took the post after a brilliant career amongst the grand in international banking.

Yesterday, the Bank of Israel announced the results of a three year campaign to encourage Israel’s banks to provide more efficient services and become more competitive. The results?

Standard banking fees are down 13%
Fees on credit cards are 20% off their peak
It is clear who provides the cheapest (or not) services and for what kind of customer.
Websites are becoming more using friendly

There is probably a long way to go yet. However, after many years of public disappointment with fat banking profits, Israelis are beginning to feel the improvements.

Meanwhile, back in the UK…………

8 January 2011

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Categories: Business, Israel

Just before the Christmas holidays, I hosted some delegations from Europe. Some of the visits entailed me guiding them around one of Jerusalem’s leading hospitals. They witnessed at first hand a multi-ethnic staff treating Jews, Moslems, Christians, and whoever else came through the door.

Some of the tourists expressed surprise. In comparison to what they were used to seeing about Israel via the international media, this was not what they expected to see. Was it typical, I was asked.

How to answer? In Jerusalem, you have ultra orthodox fighting (almost literally) against the state authorities. In the Palestinian territories, minority extreme sections of Israeli society can be seen inciting Palestinian neighbours. Bedouins for years have not received social services available to others. And so the list goes on.

Yes, it is easy to criticise, but then which society is perfect. Just look at what is happening in Sweden today, seen for decades as the bastion of a politically correct land.

So, if Israel’s hospitals are getting it right, day in and day out, what else happens in Israel? can a pressure cooker of 7.5million turn out all right?

Well, once a week, I do my shopping at a branch of the Rami Levy supermarket chain. I can assure my readers that a fair proportion of the buyers are not Jewish. And the latest outlet opened up in Gush Etzion, an area where the two sides have distrusted each other continuously.

What about the religious and non religious battle ground, where often comaprisons are made to Iran. Go the kibbutz Shomeriyya in the Negev desert. In the past decade, the farmers have been joined by a group of observant Jews, who used to live in the Gaza Strip and were evacuated in 2005.

On the surface, apart from an id card and passport, the two sets of people conduct their lives in very contrary ways. And yet, they have found how to put aside political and religious differences. By talking, they realise that they have more in common than could be believed. Even if the “application” is different, ideals and aims are similar.

The Abraham Fund has dedicated over 20 years of efforts to bring peoples of different religions in Israel to work together. Elwyn serves over 2,500 children and adults with disabilities from all sectors find their positions in society. etc, etc.

Last month, the Yediot newspaper led with a story about refugees from Sudan and other parts of Africa. A moving photo showed the sufferers, walking through the desert and crossing illegally into Israel. As my wife said, we must be doing something right for these people to want to come here that badly.

7 January 2011

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Categories: Business, Israel

The new year of 2011 is barely a week old, and I have already been asked by 2 seed stage companies to help them. Bottom line: do I believe that they can convert their fledgling ideas onto a product suitable for the global market?

Well maybe not by next week, but certainly they have a chance. And why?

The Financial Times has led a discussion on why multinationals are increasingly sourcing innovative new products and technologies from emerging economies. A classic example is how Coca Cola’s new fruit juice started its life in China.

I have read elsewhere that General Motors is investing US$5 million in a mobile phone charger. The product was developed in Israel and produced in China. The list goes on.

So what is going to allow my entrepreneurs to make a difference and succeed? How are they going to develop in order to catch the eyes of the big players?

Luck and ready access always help. More specifically, a recent survey from American universities highlights the importance of old-fashioned common sense:

Entrepreneurs, especially during the early stages of their start-ups, have to think on their feet…..They have to make the best decisions possible in the least amount of time. They need to act. Practical intelligence empowers them to act quickly and confidently.

How to do that? First and foremost, emerging CEOs should not think that they have to do everything by themselves. We are so trained to believe that the only success that counts is one of perfection and which is obtained on our own.

Nothing could be further from the truth.

Here’s what I mean. I was meeting my 2 seed stage companies in good surroundings. I encouraged them to look around themselves. They realises that what they were observing was achievement and success, but not perfection. And these “impurities” had not stopped the owners from setting out and moving ahead.

The follow on from this is to find a mentor. All business people need somebody that they can trust in order to bounce ideas off them. Even if the two people disagree, the final concept is often crystallised in to a more sustainable form.

Paying a few cents for a few words of support can even lead to the yellow brick road and commercial joy.

4 January 2011

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Categories: Blog, Business, Israel, Palestinians

The European Commission decided today (22.12.10) to provide an initial financial package worth €100 million for the Occupied Palestinian Territory under the 2011 budget.

Now that is a pretty cool donation, especially from an international organisation also financing at least 4 economies suffering meltdown. And this public money is going to end up in an economy that does not officially exist, at least as a member of the UN.

This is not the only set of Western taxpayers funds ending up in the Treasury of the Palestinian Authority. The UK recently confirmed that it had contributed approx US$45 in 2010 to the World Bank Trust Fund, which “pays the salaries of public sector workers in both Gaza and the West Bank”. Japan gave US$12m in early December. Mrs H Clinton came up with US$150m. And so the list seems to go on.

Conglomerates from the private sector have also joined the game:

Cisco will invest $5 million in a venture capital fund for Palestinian startups.
Google is investing $2 million which will include contributions to the same VC fund and to the local operations of NGO Mercy Corps.
A long term commitment by HP to expanding business operations in Palestine and local collaborations with USAID.
Intel will expand cooperation with Palestinian IT/software firm Asal Technologies.

Is this a wise bet on the future or just politically correct? SKY TV recently reported on the new strengths of the Palestinian economy. Google Bethlehem at Christmas and you will find plenty of info on how Manger Square has been full of tourists this year.

According to David Makovsky of the Washington institute for Near East Policy, Prime Minister Salam Fayyad claims that 120 schools have been built in the last decade. Those and 3 new hospitals, 50 health clinics, hundreds of new or resurfaced roads, etc, etc. And tax collection was up 50% in 2010, although starting from a meager base.

Bottom line for Fayyad is that poverty is down a third as are expected contributions from foreign assistance.

It’s all looking very positive….that is until you start to ask a few questions.

1) The European press release above recognises that “the EU now fulfils by far the pledges made at the Paris Donors’ Conference in December 2007.” Good. Encouraging. So where are the equivalent donations from Arab countries. What do they know that is stopping them from fulfilling their pledges and thus investing?

2) If the World Bank Trust Fund is asking the UK and others to contribute to salaries of public workers in Gaza, they are effectively paying the wages of Hamas officials. Hamas is listed as a terrorist organisation. As I write, news came through that Hamas has illegally arrested over 3000 political opponents in 2010 alone.

3) If the Palestinian economy is improving so much, why is so much aid needed in the first place. The World Bank talks about 8% annual growth. New luxury hotels are to be seen in Gaza and in the West Bank. Israel is no longer withholding tax revenues as all debts by the Palestinian Authority are accounted for. Even the number of manned Israeli roadblocks in the West Bank is only 14 in number, thus allowing for easier commerce.

So here’s my issue: When an investor or venture capital group seeks to become involved with a new project, they look at the skills available, the team, transparency, history, and future accountability. They consider who else will share the risk. Above all, is it possible to assess the true need.

Would you invest 100m Euro in one go under such conditions? There again, in this case, it was signed off by those who are not necessarily accountable.

Pages

I hate preparing power point presentations

From boom to bust in 2011?

Business risk – financial or emotional equation?

Israel’s economy – going well, but for who?

Arab unrest: The shoe thrower’s index and Israel

Israel’s tourist industry – investment opportunity

What stops us from selling more….

When CEOs are too scared to fulfill their own vision – part 2

When CEOs are too scared to fulfill their own vision – part 1

Leadership skills – fascinating case study from Israel

Israeli high tech – what next?

The human body, weak economies and Israel

Choosing marketing content; Simple, ain’t it?

Ask your mentor: Is being moderate good enough?

Israeli economy: victim of its own success?

UK and Israeli banks

Coexistence in Israel?

Entrepreneurs, innovation, and the global market

Reasons to invest 100m Euro in a Palestinian start up

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