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Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

What’s a goal worth?

8 July 2010
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Categories: Business, Israel

It is with some irony that I learnt that the word “goal” comes from Old French, something for their current failing national football team to reflect on.

In business, the word “goal” is used in its original form – a limit or boundary to seek out.

No – it is not just the World Cup bug that made me link the two concepts. This week, I was trying to explain to a young company the importance of setting targets and planning towards them. Otherwise, you tend to drift, lose focus, procrastinate. In fact, you often end up being totally busy, doing nothing commercially worthwhile.

 “How to set business goals” is a well-worn phrase on google. Amazingly, most managers do not set them, and even fewer are reported to differentiate between short and long term targets.

I was speaking to a company that has been asked to make cutbacks by HQ. They have gone over budget and now sales are down. Salaried positions will have to be sacrificed to ensure that profit margins are protected. All very politically and financially correct.

Correct, until somebody then asked how they were going to increase sales. There were no resources available to invest in this seemingly irrelevant activity. 5 minutes of extra checking revealed that competitors are enjoying a boom. Big ouch!

A simple analysis revealed that HQ had been insisting that the unit toe the line as imposed from the top. As everybody ran around to please the “senders of e-mail”, all sides of the party forgot why they were in business; to sell in order to make a profit. Years of continued success have been converted in to….an empty hole with no end in sight.

In both my case studies, a large outfit and a small set up, the planning boards are coming out very quickly. The first team are looking closely at where they want their new firm to be by the end of year one. The second group is taking a near and far term approach, once HQ can realise that there is more to life than a piece of paper with numbers.

Boost in British trade with Israel

7 July 2010
1 Comment
Categories: Business, Israel

BT (British Telecom)’s division, Openreach has just completed an US$800 m deal with Israel’s ECI. The UK’s broadband unit will be overhauled, delivering a faster and improved service for tens of millions of users.

Israel remains one of the UK’s main trading partners – both imports and exports. Overall, the figures were down around 25% in 2009, probably due to the global credit crisis. However, the first 5 months of 2010 have seen a sharp rebound of nearly 40%.

The outgoing British ambassador to Israel, Sir Tom Phillips, drove improved trade relations as one of the main themes of his tenure. And there have been some notable successes. Recent  examples have included: –

  • Nice Systems, one of Israel’s premier risk software solutions, signed an extensive contract with the UK-based outsourcing company, Teleperformance.
  • Laline Candles will be investing in 30 new shops on the British mainland in the next 5 years.
  • Easy Jet’s new Tel Aviv route has been reporting 90% capacity
  • The Israeli Ministry of National Infrastructure has hired a UK consultancy to resolve disputes with overseas contractors in the energy sector.

And so the list goes on. Just last week, the new website of the Israel Britain Chamber of Commerce went live. It has listed news items on a series of bilateral contracts. Gas, cleantech, mobiles and even catering are just some of the sectors featured.

Within the next few months, there will be a new ambassador in Tel Aviv. The Israeli trade attache in London will return to be replaced by a very experienced colleague. The Chamber of Commerce has just elected a new Chairman. Together, these people have a strong act to follow, but with an excellent base and support from which to proceed onwards.

How Jerusalem and Athens differ today

5 July 2010
1 Comment
Categories: Business, Israel, Jerusalem, Palestinian Society

Last week, the Tel Aviv Stock Exchange held its 10th annual soiree in London. The big guns of the Israeli economy were there, led by Esther Levanon, the dynamic CEO of the exchange.

Levanon proudly recalled that once the Israeli economy used to be compared to that of Greece. Today, with Israel now a member of the elite in the MSCI exchanges, her position there is worth that of Greece, Portugal and Ireland combined.

Stanley Fischer, the governor of the Bank of Israel, and with an excellent reputation on the world banking stage, was hauled out in front of loads of tape recorders and video cameras. Fischer was ready to launch his speech at any given moment:

  • Israel banks encourage savings and rarely lend more than 70% of mortgage values.
  • Israeli workers cut their hours in the recession to protect jobs
  • The high tech sector now contributes to 51% of the value of the country’s exports.

The micro stats are just as impressive:

  • Unemployment is 7.2% and decreasing, as opposed to 10.0% in the USA and in Europe.
  • Israel has maintained its current account surplus
  • It maintains a 4.0% growth rate in most years
  • It invests 4.9% of its GDP (2.3% for the OECD)
  • Its public sector debt barely grew during the recession, where as the OECD average reflected a near 20% change.

Message: Israel is the place to invest

As the financial daily, “The Marker” pointed out – don’t mention the lousy education system or the economic concentration available in the hands of a few families, and life for Israel’s financial planners could seem almost perfect.

Gaza’s economic woes – what happens if the blockade is rescinded

4 July 2010
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Categories: Business, Israel, Palestinian Society

It is politically correct to accept that Gaza’s economic woes are cause by Israeli policies. However, if you use IMF and World Bank stats, 3 points are immediately evident of Gaza’s history:

  • Under Egyptian rule up to 1967, the area was an economic no-go area with life expectancy under 60
  • With Israel in charge, growth leapt to over 5% per annum until 1999.
  • Bring on the Intifada and then Hamas rule, and its back to disaster time.

Fertile Gaza, with an economy that could be really successful, suffers from unemployment, poor sanitation and an authoritarian  government.

For all the repeated criticism of Israel from UNRWA, NGOs, the Turkish Prime Minister and others, there is no starvation in Gaza. Consumer goods exist in quantity. There are even official tariffs to protect some local manufacturers and keep out imports. Hamas has refused to move even one Palestinian family from the refugee camps and into former Israeli towns. 

I found  a recent Newsweek article illuminating:-

While the three-year-old ban on many imports has posed a hardship for most Gazans, smugglers have been able to deliver these items through a network of tunnels connecting Gaza with Egypt. An Israeli television news segment—aired last week and widely discussed here—shows Palestinian shop owners on the phone with their Israeli suppliers, coordinating the delivery of goods by sea to Cyprus and onto Sinai, where they’re carted to Gaza through the tunnels.

So not much of a blockade. So what is likely to change now that Netanyahu has bowed again to international pressure and accepted most of Obama’s demands?

Will there be less firing on Israeli civilians, the main cause of Israeli hostility? Maybe – not out of love, but because Hamas has seen how the propaganda front can be more rewarding than firing thousands of missiles.

Ironically, if imports arrive directly into Gaza, prices may rise and Hamas may lose a source of its income. Hundreds will lose work in the tunnel industry and Hamas will cease to take its graft from the reduced contraband. Maybe, the activities will transferred to the overland ports of entry and “normality” will be restored.

Israel has agreed to up the numbers of trucks allowed to enter Gaza daily from around 100 to 150. Maybe exports can start up, which will produce a real bonus for the economy. The fact that NGOs have failed to call for this until now reveals how their focus was often directed against Israel than on behalf  of Palestinians.

What would truly make a difference is if Hamas were to recognise Israel’s right to exist. In the West Bank, where the economy has grown by around 8% in the past 12 months, there is now cooperation over sewage schemes and alternative wind energy. Rami Levy, one of Israel’s largest supermarket chains, has a new branch near Bethlehem open to all.

Why don’t world politicians force Hamas to do something that is obvious, necessary, simple and humane; to recognise Israel and to live in peace with the state? Think how much we would ALL be better off.

Want to start a new business? Some case studies

2 July 2010
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Categories: Business

Yesterday, I wrote that there is no genetic code or magic formula to setting up a successful new business.

We can mention the need for dedication, loads of unexpected luck, hard work and many more factors. With my clients, I always stress the importance of dedicated planning from the outset.

I also like to draw their attention to the stories of those who have made it through the early stages. So I was very pleased to come across a page on the BBC website, which is dedicated to the anecdotes of successful entrepreneurs.

There are 10 separate videos; men and women, various age brackets, services and high tech, slow and immediate triumphs. Each clip lasts up to 10 minutes.

All the participants open up to the camera, and there are summaries of their key pointers or advice: Some of my favourites are: –

  • ‘The right mental attitude’. (Yes, it ain’t always pretty or fair).
  • ‘The simpler your idea, the better’. (You do not have the resources for too much).
  • ‘Don’t wait – do it now’ (How many of us procrastinate?)
  • ‘Stay focussed on your idea – don’t get distracted’ (Or else it’s back to procrastination).
  • ‘Don’t embark on a start-up single-handedly’. (Even the best sports players have a coach).

There are some excellent individual moments of triumph in these stories. What they all seem to share is passion and commitment. And that should be a strong message for anybody just starting out.

Good luck!

So you want to start a new business…..

1 July 2010
2 Comments
Categories: Business

Most of us are tempted. We want to start out on our own, because we see dollar signs in front of our eyes.

However, the fact is that there is no special formula to achieving  mega sales overnight. Perseverance, luck and creativity will play their parts. As I have written before, beginnings are rarely easy, and this is just as true in the world of commerce.

In my business mentoring, I come across interesting people with a tremendous range of talents and ideas. Sooner rather than later, several get stuck. The issues range from procrastination to lack of knowledge. Often, they are forced to come to a realisation that what is a simple task or step for most entrepreneurs actually drives fear into others. We all have our own wall.

As ever, there is no one single rule to follow in order to run a small company successfully.

Be warned: working for yourself isn’t for everyone. Just because you’re a great technician at what you do doesn’t mean you’ll automatically be a great entrepreneur, too. They’re two totally different hats to wear. Running the show solo requires ample amounts of determination, discipline, and fearlessness……..Marla Tabaka, a business coach who writes The Successful Soloist blog

In my mentoring, I encourage people to check their base approach – why they believe that they will succeed. Its one of those seemingly innocuous probes that takes us into many different facets.

A parallel approach was raised by Dr Robert Brookes , who recalled the work of  Stephen Covey’s book, The Seven Habits of Highly Effective People.  Covey was really asking how we want to be remembered at our funeral and rged that we adopt specific patterns of behaviour. His “First Three Habits” surround moving from dependence to independence 

  • Habit 1: Be Proactive
  • Habit 2: Begin with the End in Mind
  • Habit 3: Put First Things First

 That’s right: Covey could have been talking about setting up a business.

OECD confirms Israel “green and clean”

30 June 2010
1 Comment
Categories: Business, Israel

Cleantech 2010 in Tel Aviv is Israel’s premiere platform, allowing the Holy Land to show off its technologies in this latest industrial revolution. The country may offer barely 400 companies in the field, but its capabilities are being copied by many others.

Better Place is driven by an Israeli – American CEO, Mr Shai Agassy, who intends that Israel will host the world’s first all-electric car network within the next 12 months. IDE operates 2 huge desalination plants in Israel and has been commissioned to expand an existing operation in China. Siemens has already invested hundreds of millions in Israeli solar technology, with a new agreement announced this week. Personally, I am involved in an exciting biomass project, successfully converting poisoned waste into energy.

I can mentioned algae farms. We can discuss wind technology, which redirects the direction of the air around the turbines. And there is much more out there on google.

But it goes further than that, much of it is unseen. Israel’s electricity company is completing a pilot project, involving 150 internet users. They have access to a 100 mega line, way faster and cheaper than anything currently available. Within approximately 30 months, it is expected that the whole country will have access to the same service.

And the OECD in its first report on Israeli agriculture has confirmed the important skills that the country possesses. The press release is none too encouraging, probably the sign of some childish internal politics. However, the content is extremely positive.

According to the report, ………, a string of reforms in (Israel’s agriculture) sector between 1990 and 2007 caused a 60% rise in output leading to an annual average growth rate of 2.2%, higher than any other industry and higher than in most OECD countries.

The report states that Israel enjoys advantages in season and expertise, which allow it to successfully export many of its crops to the European market, but that its primary source of agricultural export is in technology. According to the document, in 2007 agricultural technology exports amounted to $2.2 billion, eclipsing agro-food exports.

It is nearly a year ago since McKinsey confirmed Israel’s strong positioning in the cleantech sector. This month’s exhibition and news serves to consolidate and publicise these significant global advances.

Reduced “weight of government”

29 June 2010
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Categories: Israel

The phrase, the “weight of government” often conjures up negative connotations – something along the lines of “what stupid thing are they going to force on me now”.

I assume the idiom comes from a time when there were so many people in government, sitting round doing nothing and getting fat. In Israel, there are currently 30 ministers of government, 25% of the whole Parliament. Clearly, the public budget has mushroomed in order to accommodate all of these people, their assistants, offices and other heavy baggage.

Israelis are used to seeing TV pictures of the opening of cabinet debates, where the table is full of sweet-tasting goodies. But suddenly, several months back, Prime Minister Netanyahu instituted a policy that has won the support of all factions and all religions. Fattening, unhealthy delicacies will no longer be provided. Ministers have been asked to join keep fit programmes. Cut up veggies are now the main part of the noshing menu.

If I was to paraphrase from a popular American TV reality programme, if the Israeli executive wants to change people’s lives, it has started to set an example with their own behaviour,

Netanyahu is reported to have lost 5 kg; the minister for tourism – 6kg; Yisrael Katz at the Transport Ministry – 30 kg; Barak and Lieberman, defence and foreign affairs – 6kg and 15kg. The finance minister plays basketball once a week.

Just adding up these figures alone comes to the average weight of an adult female. In other words, in terms of fat, the Israeli government is literally shrinking away. Now there’s a thought for the country’s enemies.

Orange, Israel, fails 101 “service for dummies” course

28 June 2010
2 Comments
Categories: Business, Israel

With the click of a button, an unhappy client could send your company or its sales into a tailspin. “Don’t underestimate the power of a disgruntled customer,” says Rebecca Morgan, who authored Calming Upset Customers.

Isn’t that obvious? Well, apparently not. We all know the stories of Dell and other multinationals who lost mega sales and many branding points by treating customers with arrogance. It would seem that bigger you are, there is a greater danger that you are less responsive to your income source.

Take the Israeli mobile operator, Orange, or Partner as it is sometimes known. It has a large and enticing website, with even larger profits to match. I called them to verify my latest monthly bill.

Do you think that I could get the customer service team to admit that there was a mistake? You must be joking. I asked for an explanation of how I was being charged. She responded. I said that her words did not match the line-by-line items. She said that her words also appeared on the bill. So what? What did that help me?

Her solution: Would I like to hear about a better deal? Nothing about how to resolve the discrepancy. So much for being a help desk.

In fact all my questions and comments were treated with the same kind of answer. In other words, the lady was well-trained and found a textbook response to each issue. Her problem was that she sounded just like… a textbook. Has nobody taught Orange staff that formalities do not work? In fact, they are offensive!

Anyway, I accepted the chance to hear about a different pricing system. So sexy voice number two comes on the phone to stroke my wounded ego. Yes, I deliberately use mixed metaphors, because I assume that this is part of “their” game. In effect, this was an insult to my intelligence, but they did not seem to understand that.

The new offer was clear. No penalty clause for changing programmes. But when pushed, she did admit that I had to commit to being on the scheme for 18 months. Why? Because “we are trying to help you”.

Sounds caring, yes? No, a thousand times, NO. If they wanted to help, they would just move me over to the new scheme immediately, no strings attached. Genuine assistance is something you learn about in the first lesson of  the service for dummies course, which it would appear that Orange employees are not allowed to study.

As for the 18 months commitment, which other retail brand demands such loyalty from you? Does Safeway say that you can only shop with them, if you make all you purchases at their outlets for the whole month? Does your bank demand that you keep all your accounts with them? Do have you have to service your car at the same garage every time?

The 18 month rule is an abuse of the consumers right to freedom of choice, and it encourages Orange and their competitors to offer out lousy customer service.

And who is to blame? Well, let’s start with the regulators, but that is another blog altogether.

Eureka – EU blesses the world of start ups

27 June 2010
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Categories: Business, Israel

EUREKA is a pan-European agency, investing €1.5 billion annually in start ups and emerging industries. Israel is considered one of the 5 most active partners of the project. For example, in 2008, it was associated with 40 of the 300 approved projects.

So, it comes as no surprise that this weekend, Israel was officially awarded the Presidency of EUREKA , succeeding Germany. In fact, of the 150 new initiatives, Israel will be concerned with 23  of them. Not bad, considering that Israel has only been a member since the year 2000.

Robert-Jan Smits, the deputy director-general of EUREKA, was quoted as seeing the Israeli leadership as a positive move for all. As reported in the Hebrew newspaper, Yediot,: –

Israel is a very good example of taking r&d seriously. Many European countries can learn from the way Israel’s government is involved in investing in industry. Israel has an educated workforce, excellent innovation and incubators…..

It will be interesting to see in what direction Israel will lead EUREKA. There has already been much talk of allowing in other countries, notably from Latin America. Israel’s minister for trade and industry, Fuad Ben Eliezer has also made it clear that he wants to bring Egypt into this exclusive club.

Israel wounds a $9 billion market

25 June 2010
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Categories: Business, Israel

Many analysts have commented how Israel’s successful high tech economy is a fact driven by necessity. Never was this more true than in the fields of medical devices and applications.

Specifically, look at the example of wound healing, a subject that reaches out to the civilian and heavy military markets alike in Israel. Estimates calculate the value of the global market at around US$9 billion.

And here’s the catch. Many of the global players with something significant to offer are Israeli:

Israel will have the world’s largest company for burn and chronic wound treatments, if all goes according to plan in a complex merger deal between Clal Biotechnology Industries Ltd. (TASE: CBI) portfolio companies MediWound Ltd. and Polyheal Ltd., which will come under the control of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA). Under the proposed deal, MediWound will acquire full control of Polyheal, and Teva will gradually increase its stake in MediWound to 51%.

There are several other, but lesser known, Israeli companies, which operate in the field. One is called Cupron. It offers a copper-based platform technology, which is known to support skin regeneration. Could it make stitches in the skin an irrelevant subject?

These discoveries, shoved into the media limelight, come at a time, when there are growing shouts for economies to boycott Israeli products. The hypocrisy of such a world campaign is drawn out by these very products.

Can you imagine an organiser for these unilateral moves, which are often basted on hate turning round, saying: “I refuse Israeli treatment on my skin”? What nonsense!

When “branding” meets “networking”…

23 June 2010
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Categories: Business, Israel, Jerusalem

I am one of the moderators at JBNF, a monthly meet up forum for business folk in the Jerusalem region. This week, we conducted a frantic session of speed dating; 40+ people getting to know each other’s commercial strengths inside 90 minutes.

I was drained by the end of it. And yet, the results were clear as people left the hall. It was more than the swapping of business cards. Meetings were being fixed up. Interviews and site visits were arranged. Seminar material was being snatched up. And much more.

Interspersed amongst the one-on-ones, we arranged for 3 guests speakers to give tips about how to network; the importance and structure of an elevator speech, how to listen to others with empathy, moving out of our comfort zones – these were just a few of the themes mentioned.

What did it boil down to? When you network, you are showing off your own brand. And remember:

Before seeking the spotlight, the first question you should answer is, “What do I have to offer that no one else can?”

I told the story of how so many of us, when faced with a reception where we know nobody, end up spending most of our time creating an in-depth relationship with a glass of orange juice. In fact, a quick look around will probably reveal 30 other people in a similar situation. The trick is to start talking to them and to create new hubs of contacts. Draw them in to your circle – after all, as they are probably just as bored as you, they will be only to happy to talk to you.

And that’s the point. Moving out of your comfort zone may not be easy at first. However, as most of us find once we have moved on, the new level is just as satisfying as your previous set up. Surprise!

How tech brings you a better world cup

22 June 2010
3 Comments
Categories: Business, Israel

There must be dozens of countries around the world, that every 4 years have hopes of getting to the World Cup Finals but continuously miss out.

Israel is a strong member of that not-so-unique contingent. In fact, similar comments can be made of it efforts at the Olympics. Far more is spoken and written than actually done…done, that is on the playing fields and track.

You see, Israel often has a major part at these sporting triumphs, although the role is confined to behind the scenes. For example, for the past decade, numerous companies from the Holy Land have secured contracts for security at the Olympics, and this includes software and hardware providers. 

South Africa 2010 is no exception to the rule. LiveU is based north of Tel Aviv and connects real time video links to any camera within seconds. Barely in operation 4 years, by January 2010, their tech was used to capture behind the scenes action at the Grammy awards.

And as the current footballing grand prix plods on, LiveU has taken tens of its units to the World Cup. Clients renting their “black box” include media giants such as NBC and AP. Another line of sales are buses showing games as they are played.

40 workers, a growing line of investment partners and a small office in America. Amazing how simple it can be if you want to make it big. And millions around the world are now benefitting.

Israel puts cleantech back on the map

21 June 2010
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Categories: Business, Israel

I have just received my invitation to an exciting meeting of the “Council for the Improvement of Jerusalem”. Maybe long-winded in name, but the event will be designed to save future resources.

What the presenters will be talking about is a housing project for the caiptal, where the 50-100 new apartments will recycle their waste. The bottom line is that energy demands of the homes will be met without external support. Significantly, one of the key speeches will be given by Tamar Goldman, whose father Arnold Goldman has been a pioneer in the solar energy industry.

The presentation is scheduled to take place just 2 weeks after Israel’s annual showcase event: Cleantech. As the organisers point out….

There are 320 companies in Israel that can be defined as specializing in the CleanTech field. In the last two years, over 300 million dollars have been invested in the CleanTech industry. In the last two years, over 13 investment bodies were established in the CleanTech industry.

For a country of only 7.5m people, that is a remarkable achievement.

And while Israel is often mentioned for its strengths in solar and biomass technology, necessity has forced the country to take a lead in water purification. As the summer heat intensifies, I read this week that from a base of zero in 2004, this year nearly 300 million cubic meters of water will be made fit for drinking by purification. That stat will more than double by the year 2020.

These are not empty words. Earlier this month Tigo Energy raised US$10 million in ew financing. Israeli cleantech is definitely on the map.

Innovation led growth

20 June 2010
1 Comment
Categories: Business, Israel

What is the value of innovation to an economy?

When talking about Israel, the IMD Buiness School has noted how innovation has helped Israel out of the global recession quicker than most. Innovation has helped Israel to reach the levels of OECD membership. I have wondered if Israel has discovered the DNA of innovation.

A boutique Israeli software house, QMarkets, has taken the concept of innovation one stage further. It provides companies with a formal platform, allowing senior managers to engage with the ideas of their employees and then to act on them.

My colleagues and I have been involved with QMarkets for around two years now, particularly in the UK and European markets. For example, last month, EDG, a significant international consultancy group, started a series of trials with the company. This has been followed with orders from a large energy supplier in the UK and a European telecon giant, with several pilots also in the pipeline.

A true sign of Qmarkets emergence was its positioning on the prestigious executive internet TV channel, “Meet The Boss.” Here, Michael Stilger, the company’s director of Global Solutions, outlined the concept of “innovation led growth”. Bottom line: Instead of investing in a production line or a software, promoting or encouraging innovation will impact directly on a firm’s internal procedures – that is to say, more sales and /or less costs.

From there, it is only a short step to see why the economy will benefit at a macro level from innovation. Interested?

Having faith in the holy economy

15 June 2010
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Categories: Business, Israel

One anonymous financial expert and blogger sees Israel’s housing market heading for a crash, taking the rest of the economy with it.

There are near daily comments in the Israeli press, arguing in parallel whether the financial mandarins are getting the real estate market right or wrong. Is it a bubble or not?

To judge from one anecdotal piece of evidence, the answer is that the banks confident that they are in control. Only today I was informed that two leading finance houses were fighting each other to grant a large loan to be secured against a significant piece of land. Certainly, not everything is rotting in the garden.

Yuval Steinitz is the current Minister of Finance, whose Jerusalem office is a brief drive away from the Holy Sites in the city. He can boast of a doctorate in philosophy, but has a limited background in economics. And yet, he is sitting fairly pretty at the moment. After all, even the most conservative estimate put growth in 2010 at over 3%.

An interview in a weekend paper demonstrates that Steinitz is aware of potential pitfalls. But for him, real estate is just one of several structural issues that are being actively tackled. For example, the government is ensuring that more flats are available to first time buyers, while mortgages regulations are being tightened.

Elsewhere, more investment will be placed to encourage the ultra orthodox and Arab communities to enter the workforce, when historically this has not been the situation. In order to address the “brain drain abroad”, high tech will receive more benefits, especially regarding the employment of local talent. The ministry of defence will have to justify financially new large programmes.

Steinitz also mentione that protection of pension plans, tax benefits for industry and other sacred cows are all being revisited. The aim is to ensure that the base structure of the economy matches the needs of the country over the coming decade. 

In the next few days, Israel will officially become a member of the OECD. It is a club that Israel deserves to be part of, now and in the future.

Gaza after the flotilla – what’s changed?

13 June 2010
3 Comments
Categories: Israel, Palestinians

It is over 2 weeks since Israel launched its raid on the Gaza bound flotilla. It would seem that the diplomatic fall out, especially in Europe, has not gone the way of Jerusalem. Spain for one is asking that the EU secure a change in the so-called blockade procedures by Israel.

Israelis argue that Gaza is full of food and common resources. Over 7,000 truck loads of goods were delivered in 2009 alone plus countless smuggling efforts. To that, you can add the fuel paid for by the EU, electricity and telephone services supplied by Israel, the falling price of cement, and so on.

One Israeli blogger, David Frankfurter, has described this scenario as “Liar, liar, pants on fire.” Elsewhere, he gives expression to what many Israelis feel. If the world wants a new attitude to Gaza, then writes Frankfurter: –

…..rules need to be formulated, which are simple, straightforward and easy to understand. Whatever Gilad Shalit (kidnapped by Hamas and not seen for nearly 1,500 days) has free access to, this will be allowed into Gaza….  Whatever he is denied will also be denied.  That includes visiting Red Cross staff. And access to medical care in Israel.  And guns.  And bullets…. Let Hamas draw up the list.

But there is another side to this argument. Check out what the Palestinians are saying about Gaza. For example, leading journalist Abu Khaled Toameh has commented how Hamas will ban the intended forthcoming municipal elections.

This is no isolated policy move. The May 2010 report from the Palestinian Independent  Commission for Human Rights documented 20 Gazan deaths in one month alone related to suspicious circumstances or the result of undue force. Similarly, there were 12 reports of torture, harassment of journalists, attacks of private property including UN facilities, and so on.

I was personally informed about the ransacking of the Sharek Youth Offices, where daily raids from government supported entities have resulted in destroyed and confiscated equipment. As a Sharek press statement observed in commenting on the flotilla incident: –

We do not accuse any particular party but stress that armed groups have taken these actions in the name of national security.  Nevertheless, the government in the Gaza Strip has not taken any significant action and has continued to disregard the violations experienced by Sharek and indeed all civil society institutions.  Given that those who carry out the violations do so in the name of the government in the Gaza Strip, we would like to highlight the following:

  • The government of the Gaza Strip is responsible for providing for the security and safety of its citizens and institutions, in particular against direct violations against them.
  • The fact that a group uses a name other than that of the government does not absolve the government from liability in these matters even if the groups are not related to the security or armed forces of the government in Gaza.
  • The efforts by international activists in the Freedom Flotilla to break the siege of Gaza and the attention of the world’s media on the siege has been used as a distraction and a cover to settle scores with any individual or organization arguing for unity, reform, development, freedom and justice in the Strip.  Such an action is a flagrant violation of the rights of the citizens of Gaza who remain steadfast in the face of the siege and Israeli aggression.

With all the efforts being made by our supporters abroad to break the Israeli siege, we believe we must also draw their attention to the ‘internal’ siege, imposed upon us from within through confiscations and the daily withdrawal of freedoms.  

We do not accuse any particular party but stress that armed groups have taken these actions in the name of national security.  Nevertheless, the government in the Gaza Strip has not taken any significant action and has continued to disregard the violations experienced by Sharek and indeed all civil society institutions……… 

You have the feeling that much of this abuse was around before the flotilla incident and will sadly continue in the months to come. So why is Israel to blame? Plus ca change, n’est ce pas?

 

You opened your business. Now what?

11 June 2010
1 Comment
Categories: Business

As a business mentor, I often see this phenomenon. A small team about to or has just launched their operations with mega enthusiasm mixed with trepidation.. and then somebody asks “what next?”

And the answer is an embarrassed silence. Ouch! So how do you avoid that painful scenario?

First, as the kick off day comes ever closer, take a step back and from an objective position ask yourself: “what do I need to enter this business”? What are the resources required? Be honest and respond in detail.

An obvious suggestion, when you coldly read it here. I once met up with a great team, who had been planning away for ages. They knew all the the google refs and more. But when faced with the question of needs, they were flummoxed. It felt like several minutes before somebody could respond. Today, they have a wonderful start up.

Now ask the same question about yourself. What skill-set do you require? For example, if you are operating a one-person enterprise, you will need to be just as adept on the tech side as with sales and with time management. In truth, few of us possess such all round qualities and even less will admit to that. You will need to be able to call on help, advice and even outsourcing services, quickly.

If not, you will almost invariably be left wondering what to do next.

Above all, there is a need to stay focused. A recent article from the Harvard Business Review  referred to this as the “coherence premium“. Personally, it took me far too long to admit that I was a great procrastinator, and it is a common failing I see in others.

You need be able to ask yourself why you find all kinds of “alternative activities”, which keep you busy, but do not actually have anything directly to do with accelerating revenue. In fact, because we are scared or afraid or not ready or whatever, the “now what syndrome” is often quickly converted into something more dangerous. And that is leave-me-alone-as-I-am-busy-doing-lots-of-nothing.

Starting a business should be hard work, fun and rewarding. What few people realise in advance is that Stage 2 can be just as challenging as the preparatory efforts  and you need to be equally focused to cope with it.

Innovation; Israel & Denmark

9 June 2010
1 Comment
Categories: Business, Israel

Innovation is one of those much-hyped buzz words. It can be used in the context of motivation. And yes, I have written about them both, often in the context of Israeli society and commerce.

Yes, Israel is good at innovation. “Why?” the question was posed yesterday by a 4-strong delegation from Denmark’s Enterprise and Construction Authority. I met them with leaders from “Israel Business Connection“, which is dedicated to helping new immigrants to integrating into society.

The discussion was fascinating. One key theme to emerge was that you cannot legislate innovation. It has to be part of a culture. A central authority help to provide some of the conditions of that environment. Here, Israel has several fundamentals working in its favour.

Let’s start by returning to the theme of immigration. It is an accepted fact that much of the brains behind Israeli hightech and cleantech are Russian Jews, who abandoned the Kremlin as soon as they could in the 1990s. With or without Hebrew, many have found their way into industry. I come across this almost every week in my company visits.

And yes, Israel is surrounded by less than friendly countries, which forces (or motivates) it to be creative. Military tech is often converted to civilian use, once former soldiers take on regular jobs. An early example were night sights and their application in medical equipment.

The Israeli government sets up incubators, several of whom have since been bought by private companies. These afford young firms the opportunity to concentrate on development, while minimising the burden of admin.

In parallel, there is a system to allow start ups to engage with professional business mentors, subsidised by 75%. In the past year, I have fulfilled this role several times. It is demanding and rewarding. It requires experience to see above and beyond the immediate issues. I challenge the client to focus on what is the core subject and not to be bogged down with trivialities.

The Danish team reported that in terms of start ups, there is no shortage of numbers in their country. The problems revolve around converting this energy in to large companies. And while we were chatting, the Israeli treasury announced measures to tackle that very subject.

Clear outs, some cows, Israeli humous and Pepsi

7 June 2010
No comments
Categories: Business, Israel

What should my budding entrepreneur do? Sitting opposite me yesterday was a very talented young gentleman. He had found a way to import cheap goods into Israel, sell the stock quickly, while gathering loads of satisfied customers and locking up a wad of liquid profits.

Should he take the business up a phase? Can he develop his idea and start to realise his extended vision?

I pointed him to a story in the weekend Hebrew press. Strauss Ltd is an economic food giant in Israel. Legend has it that the company started operations nearly 80 years back. Grandmother Strauss fled Germany, acquired 2 cows and started selling the milk in a small town in northern Israel.

Around 15 years ago, Strauss bought out Elite, Israel’s largest sweet manufacturer. It now dominates the Israeli humous, tehina and “dips” market. Ofra Strauss, chairperson of the Strauss Group, is considered the 12th most influential woman in the world, according to Forbes Magazine.

Two years ago, Strauss began to explore a joint venture with PepsiCo, a US$43 billion food conglomerate. The aim was to buy the company Sabra, and latch on to the growing humous market in the USA. The relationship has proved an amazing success. Ofra Strauss is even pally with Indra Nooyi, the CEO of PepsiCo and 3rd in the Forbes list.

Last week, the two companies upped the level of engagement. They announced an agreement to co-own a new 300 hundred employee plant in the state of Virginia, not bad for an area suffering over 7% unemployment. The American humous market is about to become very spicy overnight.

My prospective client might be better off by moving to the USA and opening up a pita business, which will compliment the Strauss-PepsiCo cooperation. Whatever his choice, grandmother Strauss should remain a simple yet pertinent inspiration during his decision making over the next few days.

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