Blog Archives - Page 10 of 12 - Michael Horesh Business Coach and Mentor

1 July 2013

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Categories: Afternoon Tea in Jerusalem, Blog, Business

If you had to pick five qualities or characteristics that you would want to see in a tip-top employee, employer or just work colleague, what would they be?

Let’s cheat for a moment and consult with Dr Google. For example, an item last year posted on Forbespoints to professionalism, high-energy and confidence, along with self monitoring and intellectual curiosity. A more recent blog directed the reader to learning curves, teamwork, value proposition, communication skills and even personal enthusiasm.

All very true. I will let the organisational psychologists amongst you debate it out. However, I believe that there is a much more basic and practical formula.

I have just finished reading “80 Not Out” by Dickie Bird. This octogenarian gentleman is a legend in the game of cricket, a mediocre player who went on to become possibly the greatest umpire ever. Like his dad, he left school early and went to work in a coal mine. Some lucky breaks saw him make it into the world of sport. He has since earned global fame and even attained honorary degrees.

On page 150, he observed:

I am more convinced than ever that there are five qualities which are vital for an umpire to reach the top of his profession – honesty, concentration, application, dedication and confidence. It is also important to gain the respect of the players……

Mr Bird is no academic.He probably does not folow blogs or the Tom Peters of this world. For all that, he has hit the nail on the head. With delicate simplicity, he has just described what anybody should possess in order to reach the top of his niche in life: honesty, concentration, application, dedication and confidence, all wrapped with an understanding of mutual respect.

14 February 2013

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Categories: Blog, Business, Israel, Palestinian Society, Palestinians

All finance directors need to control their budgets and cash flows. Otherwise, your shop, your corporation or your country enters the world of bankruptcy.

Palestinian Treasury officials have never been able to plan future positions from a position of stability. Blame Israel, internal politics, donors not fulfilling pledges, etc, but their excel spreadsheets have often lacked substance.

The draft budget for 2013 was presented this week in Ramallah. As noted by Finance Minister, Qassis, Israel has not transferred funds for January. Further, Arab countries have yet again defaulted on promises of support. Palestinian Monetary Authority (PMA) chairman, Jihad Al Wazir, says that from 2008 to 2012, handouts have dropped by two-thirds to a paltry US$600 million.

I am sure that the irony was not lost on the cabinet when a seminar, hosted by Transparency International the previous week, had noted how there was a need to take “measures to improve oversight of PA financial controls at the borders and increase coordination between the border and finance authorities.” To put it diplomatically, money is simply going astray.

There are clear positives, which give room for cautious optimism. A feature posted on CNBC noted that while the public sector debt was moving dangerously upwards to over 12% of gdp, the PMA has ensured that the banks have been protected from financial harm.

The banking system’s Tier 1 capital, its main benchmark of health, stood at a remarkably robust 24 percent of assets last year, according to the IMF. Struggling European banks’ Tier 1 ratios generally hover between 7 and 10 percent, and at around 8 percent for Israeli banks. Non-performing loans at Palestinian banks stand at less than 3 percent of total loans, and debt-to-deposit ratios remain far healthier than in neighbouring Jordan and Israel.

In parallel to this island of stability has been the slow but detectable rise of a new middle class. Rawabi is a fascinating new town, located near the city of Ramallah. Its development has been encouraged by Israel. Intriguingly, much of the properties are slated for young couples with ‘new money’. And that trend is matched by the growth of Palestinian women in employment, and more specifically as entrepreneurs. Their numbers may now be as high as 30% of the labour force.

Personally, I have found it interesting to read a Palestinian blog describing the “flood of Israeli goods” entering Gaza. While the author clearly believes that this is not a healthy situation, they also failed to note that Egypt has began to waste smuggling tunnels on its border with Gaza. This vital lifeline “brings in an estimated 30 percent of all goods that reach the enclave.”

And of course, if the Palestinians cannot rely on their Arab neighbours for donations, the good news is that the contributions from the relatively affluent EU taxpayer have not seized up. It is difficult to assess accurately the level of payments that the EU devolves to each citizen in Gaza and in the West Bank, as Brussels conceals the statistics. However, the direct directives added up to almost €200 million in 2012. This not only went to financing salaries of civil servants. As confirmed by leading local politicians, the money financed the living standards of convicted terrorists.

For all these positives and their starts, significant change will not come for sometime. The geopolitical dynamics will see to that. In addition, tunnel destruction, rising debt and continuing corruption do not facilitate a mass Palestinian socio-economic revival. As one Palestinian commentator indicated, when the wife of a senior PLO official spends $20,000 for dental treatment in Tel Aviv at a time when there is no shortage of renowned Palestinian dentists in Ramallah, Bethlehem and Nablus, the average citizen is forced to deals with inconvenient truths.

Over the next few months, UN committees, the World Bank, the EU and others are due to release reports blaming continuing Palestinian government poverty on the punishing measures of the Israeli government. There is no space to discuss here what is “punishing”, but even one roadblock has a limiting effect on the surrounding economy.

However, as an economist, I am forced to ask if these international bodies have considered whether the actions of Palestinian leaders are responsible for their own financial mess. Once all the mud-slinging and spin is eliminated from the Palestinian playing field, the regimes in Gaza and in Ramallah are just that – regimes, dictatorships. Historically, these types of government rarely to deliver economic freedom for their voters………….which is why the economists in Ramallah find themsleves ruling over a bankrupt treasury.

21 January 2013

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

Everyone knows that general elections everywhere are a chance for politicians to show off just how much they understand about their electorate. In other words, we are ignorant and we should just let them get on with it.

Tomorrow, Tuesday 22 January, Israel goes to the polls. For the uninformed, Israel operates a system of strict PR. Win around 2% of the vote and your party gets in! This means that for over 60 years, Israel has been governed by coalitions of smallish political parties, each trying to prove to a growing electorate that they are not egocentric.

Yes, I am cynical, but for all that, I will be voting bright and early. And I will walk into the polling booth with a smile on my face, knowing that the leaders of most of the factions have totally misread what has happened in the country over the past few months.

First, while the Likud under Netanyahu started the campaign with the largest number of seats in the Kenesset (Parliament), it was always going to suffer. Netanyahu is no great leader, but he has been able to govern for four years through the weakness of others. And suddenly, he has had to face the challenge of two charismatic opponents, Arie Deri (Shas) and Naftali Bennett (Bayit Hayehudi). Both have asked their supporters to “return” to their natural base and this is what the polls indicate is happening, especially with Bennett.

Where does this leave the Prime Minister? The voting is liable to reveal a king, who was never actually wearing any clothes but covered by an aura of arrogance.

Second, economic and social policy has become a factor in this election. Until now, this was rarely the case in the political history of the Holy Land, as defense issues and foreign affairs were dominant in a country surrounded by geopolitical threats. However, social protest of two years ago have left a scar. The financial demise of the middle class has left its mark on many. The blatant ‘handouts’ given to ultra-orthodox groups, Netanyahu’s natural coalition allies, have offended swathes of people.

Possibly, the final straw has been a wave of price rises in the public sector that will only be felt immediately after the election period ends. The media have ensured that this ‘secret’ has made its way into the public domain. The point is that while the government has rightly claimed that its policies has created economic growth – over 3% per annum – this achievement has not been felt by enough of the electorate!

Third, people have tended to vote for decades according to right or left, religious or pluralism. In 2013, there are ploiticians who cut across those definitions. Bennett wears his religious views on his sleeve, but I know of those who barely visit a synagogue once a year and are still prepared to vote for him. Yair Lapid is categorised a man of the centre-left, even though he is clearly capturing voters who are disillusioned with Netanyahu, who himself is located on the right of the map.

I do not know who will win. I have no idea which block will form the coalition. Lurking in the background is a fourth and possibly the most persuasive factor. Netanyahu has positioned himself as man who understood America and who could prevent the creation of a Palestinian state. In the past three months, the UN upgraded the status of its Palestinisn delegation, as relations between Obama and Netanyahu dropped to below freezing. What does this say about ‘ability to deliver’?

I saw the Prime Minister smiling on tonight’s news programme. I wonder what his face will be saying in another 24 hours.

31 December 2012

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Categories: Blog, Case Studies, Corporate Development, Follow the Money, Logistics and Delivery, Strategic Development

Jason was a new immigrant to Israel. Although unfamiliar with local business culture, he wanted to “copy” his distribution business from North America. However, sales remained weak, despite the considerable long hours invested. Michael encouraged the owner to consider a new approach to his use of time and to review where his marketing was most effective. By the end of the coaching contract, the CEO was employing a team of three sales staff and a personal assistant. In parallel, he released a new website and had partnered up with an investor for his business.

30 December 2012

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Categories: Blog, Case Studies, Corporate Development, Follow the Money, Logistics and Delivery

Medico Ltd is a large health centre in Israel, which raises significant funds through donations. One particular and large annual source began to dry up, as the centre struggled to coax its various departments to handle the vagaries and changing procedures of the overseas donors. Michael encouraged the centre to introduce monthly coordination meetings, involving all associated parties. In turn, this resulted in a single person being designated as spokesperson to the donors. The effect has been that contributions are now flowing, raising revenue by hundreds of thousands of dollars.

30 December 2012

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Categories: Blog, Corporate Development

Books Are Us is a national distributor of religious books in Israel. Despite having an extensive knowledge of the market and with a large customer base, the owner had accumulated substantial debts. A review of the business revealed how there was no structure to each day’s work, because the owner did not operate a daily diary. Thus, he was trying to accomplish too much and achieving very little. In parallel, he had allowed too many customers not to pay on time, with a resulting negative impact on his cash flow. And finally, despite pleadings to the contrary, it was evident that the business was holding large amounts of dead stock. Michael’s coaching was centred around creating a weekly routine, ensuring that each of these subjects were challenged and repaired over time. The owner recently was able to afford large-scale renovations of his home.

7 December 2012

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Categories: Blog, Business, Israel

Nearly every time I describe to people what I do as a business mentor, I am asked if I feel that I am acting as a psychologist for financial or commercial issues.

It can seem that way. In fact, it is not just that you have to allow for a person’s personality in how they do or do not make decisions. You also have to be aware of “background noise”. A classic example of this can unfortunately be a divorce of a key player in the organisation.

That said, I am always clear about two things. I have never even studied psychology 101. And, I am not a professional marriage guidance counsellor or similar. If those are your issues, they need to be dealt with by a professional.

I am prompted to raise the discussion by two articles I read in a Hebrew publication last month. Tzohar is a group of rabbis, who try to relate orthodox opinions with modern life, without being afraid of modernity. Rabbis Aviner and Ariel argued that people with deep personal issues can receive full help by turning to a religious leader rather than visiting a shrink. (For the record, I have clients, who confirm what they have learnt with me by afterwards visiting their favoured rabbi.)

Nomi Wolfson, a specialist in marital problems, wrote a detailed response ,which I feel deserves a wider audience. As she writes (and I translate): “The main point is the lack of understanding (by non-experts) that handling emotional issues demands a wider appreciation of life.” This is an appreciation that goes beyond showing a basic love of mankind and exuding empathy.

Wolfson goes on to analyse what she sees as the central point of dispute with her rabbinical associates. Her field of expertise is often seen as one of “words”. Speak wisely and you can do it also, no? No, cries Wolfson. And the reason is simple. In psychology, every word and every sentence can have a sub meaning. These implications need to be identified immediately. Just as it takes a rabbi – and also presumably preachers from other religions – years to learn the texts, so it takes analysts years to be certified by their professions.

In Wolfson’s last penultimate paragraph, she delivers her sternest warning. Rabbis are perceived as being most active in household disputes. They are seen as a place to seek neutrality, which is understandable. However, the professional spends many a session in training, role-playing the multiple different scenarios. That is extremely valuable background knowledge, actually working with individuals.

So who is correct? As Wolfson observes, if you need a toothache dealt with you go to a dentist. The final decision will depend on the issues involved and where a person feels confident that they will find a solution.

2 December 2012

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Categories: Blog

Last week, I had the pleasure of attending a talk by Penina Taylor at the Jerusalem Business Networking Forum (JBNF). A gifted speaker, Penina’s catch phrase is: ” A person can do the impossible if she has enough reason to make it happen”.

Penina revealed her “5 laws of success in business”, which apply to much of life in general. To briefly summarise:

Your potential worth is determined by the difference by how much more you give than you receive.
To determine your level of compensation, you must surround yourself with more and more people, who you want to serve.
Place people first and watch out for their good.
When you are yourself, you are at your most valuable.
The key to effective giving is to be open to receiving.

In many ways, this is a circular set of reasoning. Nevertheless, each attribute deserves much consideration by the individual. They can open each and every one of us up to much inner commercial introspection.

I felt compelled to ask a question about the laboured business model, “success fee only”. This is when the provider of a service is remunerated only when they have fully completed all the tasks required. Thus, if somebody is trying to secure an investment for a company, they may spend months creating the contacts, massaging the negotiations and talking for hours on the telephone. However, if the money is not transferred between the sides, then all their effort will convert to a round zero in the bank account.

However, according to Penina’s laws, this is a healthy process because it represents a large element of giving. You are creating value, at least in theory. So. how could this apparent ‘misfit’ be explained? Interestingly, I found two responses from the audience to be insightful.

One person argued that such a process can be treated as a learning experience. A second comment, perhaps more helpful, argued that the service provider is obliged to know from the outset what are the parameters, and these should be clearly identifiable by the client.

Therefore, I propose adding on new golden rule to Penina’s list. Know your boundaries. Define them well and they will be an equal benefit to all sides of the business table.

23 November 2012

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Categories: Blog

How much does it cost to run a war? Over this and the next posting, I want to look at how much Israel and the Hamas sacrified financially over each other’s skies, whilst coldly and cruelly ignoring the human suffering.

Let’s start with Israel. The larger economy by far, member of the OECD and whose stock market is ranked in the main global listing, Israel is a recognised leader in several high tech fields, such as telecom, nanotech and solar energy. The WEF ranks Israel as second in the region for financial development. despite the continuing international recession, Israel’s economy is set to grow by around 3% this year and next year.

Allowing for lost production, repairs to infrastructure, lost sales, the cost of the Gaza war to Israel’s economy could reachUS$1 billion. This figure also accounts for costs to the country’s military infrastructure. For example, each rocket fired by the Iron Dome protection system is valued at around US$50,000, and hundreds were launched successfully to shoot down Hamas missiles. And consider the expense of calling up nearly 70,000 reservists for a week, when each individual is “charged out” at just over 100 dollars per day.

Israel’s two leading finance chiefs, the Minister of Finance and the Governor of the Bank of Israel, have both gone on record to say that the economy’s overall performance will not suffer. Stats registered after previous campaigns, such as Gaza in 2005 and Lebanon in 2006, suggests that the gentlemen may be correct. An interesting piece of anecdotal evidence already reveals that local retailers in those areas where rockets landed did much better than the larger chains. The reason is that people did not travel far to discount houses and were less interested in shopping at malls. Thus, one up for small business, always a vital part of a strong economy.

As the Financial Times newspaper notes, the Israeli economy is resilient to such events. After all, the stock exchanges and foreign currency rates barely moved this week afer the initial shocks were placed in perspective.

I would add a note of caution. During the previous economic quarter, the manufacturing index had shown an impressive jump of over 15%. However, once you drill down into the stats, you see that they were driven by an exceptionally strong performance from the high-tech sector. For each of the past two quarters, it has leapt forward by nearly 30%.

In comparison, the returns from the traditional industries – chemicals, plastics, food, etc – are in the minus zone. It is these sectors, where people are employed in mass. Their factories are often located in peripheral areas, such as in the south. And it is the south of the country where most of the 1,200 rockets fired by Hamas landed, causing production lines to cease working. It is here that the economic planners, located far away behind their desks in Jerusalem, need to focus their reconstruction efforts.

13 November 2012

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Categories: Blog, Business, Israel

Small and medium-sized enterprises (SMEs) make up over 95% of all businesses in just about all economies around the world; America, China, Mongolia et al.

A quick google search shows just how many positive central government schemes to promote this sector have been released in the past few months alone. Singapore is providing more cash and defraying costs. Italy has initiated a series of tax reliefs, which will replace bank loans that have dried up. In the UK, there are numerous private and public initiatives to help fund SMEs. Even Skype has launched a new networking platform.

As a business mentor, based near Jerusalem and who works with many SMEs, these initiatives can be readily logged in the “good news” folder. And yet, imagine my concern and frustration when I read about a recent survey. “Israel’s small and medium enterprises (SMEs) employ a lower number of workers, are hindered by more constraints and have lower productivity rates than their OECD counterparts…..”

Apparently, SMEs in the Holy Land are responsible for 99% of all businesses, but are handed barely two-thirds of all bank credit facilities. According to a senior government official:

Figures show that small and mid-sized businesses in Israel are a particularly weak sector, stemming from three main reasons: Extreme regulation, hard to obtain bank credit and loans, and the absence of knowledge due to the lack of a professional managerial rank in small businesses.

However, here’s the real sting. Two months ago, the Israeli government slashed without warning its mentoring budget. For years, the public sector had subsidised an extremely unusual and successful programme that allowed hundreds of new and established SMEs owners to receive the support of professional consultants at minimal rates. In other words, that same ‘lack of knowledge’ mentioned above was deliberately targeted. Today, that hole has been savagely exposed anew.

What is just as shocking is the manner of the decision. Consultants, who had created work plans, were instructed to abandon clients without notice. Sales, production and employment strategies were left struggling without the helping hand of outside support.

The Israeli Ministry of Industry is reportedly planning new schemes, although one must be sceptical if anything can inaugurated before April 2013. (The country faces a general election). In the interim, maybe the local planners will learn from other countries, who are clearly setting the pace for helping SMEs. Of course, I could offer my services as a mentor……..

28 September 2012

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Categories: Blog

Israel has a very successful history of encouraging multinationals to set up r&d centres in the Holy Land. Where Intel led, Siemens, Cisco, Motorola and many others have followed. In the past few days, John Donahue, the CEO of eBay, made his first visit to Israel.

However, it is not just the “new industries” that are interested in Israeli brawn. GM has a very sophisticated operations, open since 2007. Boots, the UK chemist retail giant, regularly sends over teams to Tel Aviv to scout for new ideas. Nestle, Colgate, IKEA are all prominent.

Pepsi arrived in Israel in 1992. One of its first major advertising campaigns upset a significant part of the population and it has been playing catch up with Coca Cola ever since. That said, Pepsi has successfully looked beyond its natural market. For a country of nearly 8 million people, Israel has provided and continues to provide Pepsi with whole new revenue sources.

The main base for this strength has been a series of joint ventures with Strauss, which was founded in the 1930s by refugees from Nazi Germany. The Strauss partnership with Pepsi has expanded rapidly in recent years. For example, Strauss’s hummus and other spreads are being manufactured in Mexico under the Obela label. And of course, Strauss is offering its know how to Pepsi’s extensive lines in crips and popcorns and other tasties.

Strauss has an extensive variety of other international partners. This includes Richard Branson through Virgin and marketing pure water machines to households in the UK.

Tom Greco is president of Frito-Lay North America, where he leads PepsiCo’s $13 billion snack and convenient foods business. His visit to Israel this week only emphasises the importance of the capabilities of Strauss. The cooperation over the Sabra label for dips and spreads was worth US$260m in 2011 alone. Next on the list? Greco is very explicit; he too is interested in water purification.

21 July 2012

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Categories: Blog

Yesterday’s posting about concerns ahead for Israel’s economy turned out to be particularly timely.

On a more generic level, it seems that Israel is not the only economy that weathered the 2008 global turndown, but is having troubles second time round. As I read today in the Wall Street Journal, Brazil, India and China area all facing economic slowdown. Of course, if these three do not perform, then they will drag Eurpope and America down with them, showing their strength above that of Israel.

The second point is Israel specific. I commented in my blog about the lack of leadership from Jerusalem. Sver Ploscker in the Yediot newspaper observed that the budget deficit, which has been around around 2%, is now going to rise officially to 3%, despite protests from the Bank of Israel. However, as most tax rises will be delayed for electoral reasons, 4% is probably the likely outcome.

Yes, this is bound to put mroe pressure on interest rates. And the plans of the Finance Ministry to cut government spending by around 650m shekels this summer will look inadequate even before they are implemented.

However, this “cutback game” is simply what I write – a game. For example, the government has just announced that it will allocate an additional 58 million shekels – found from who knows which reserve – to support the upgrade of an institute of higher learning. It happens that the establishment is politically aligned with the Finance Minister himself.

More short term political capital achieved, whilst risking future economic stability. At Israel does not have any external threats to deal with!!!!

20 March 2012

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Categories: Blog

So, if you could choose four people on your team, would a business mentor be one of them?

Business mentors do not necessarily come up with new ideas. It is unusual for them to invent the next best thing to the IPad or to facebook or to chocolate. Rarely do they come with a specific qualification, and yet they often claim that they can help allsorts.

What’s their game?

It is about a year ago that I was listening to Ron Bowman from the Carnegie Training Center in Israel. He took the example of the top golfers in the world. He pointed out that the average shot per round of number one in the world and of number 120 something is very similar. The difference is seemingly marginal.

However, the gap exists and becasue of that number gets all the lucrative endorsements.

How is that difference maintained? The top guys pay for the best trainers and for mentors. Why? Because for all their natural skills and experience, the players need perspective. They need to keep learning how to see things in a way that will keep them ahead of the pack.

Business is not a sport for most people. However, for most of us the concept of being one step in front and remaining there is crucial.

Earlier this week, I was sitting with a baker, who had already seen one set up collapse around him. For all his tasty products, he had been unable to realise that he had to organise his time not just around his ovens. Clients needed to be met. Bank managers had to be addressed. Suppliers needed to be spoken to.

He described how he emerged from the gruelling exercise, valuing the need for overview and organisation in his new enterprise. Without expressing it, he wanted (and needed) a mentor.

A few days previously, I met up with a Jerusalem-based service company, owned by an analyst. The business was determined by an undeniably complex workflow. After some initial successful years, the firm had entered troublesome waters. For all of the CEO’s strong commercial background, he could not see what was the problem…nor the solution.

He was also sceptical if I would be able to help. After all, I have no experience in his field. What the CEO may be surprised to learn is that the solution lies not in knowledge of his specific sector, but in understanding the definition of creating an operating and practical business model – something which his internal manuals do not provide.

So, who needs a business mentor? Be you a start up in high tech or an established retail outlet or anything else, having access to a wiser and unbiased perspective could make that very significant and positive difference.

8 March 2012

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Categories: Blog

For Israelis, International Women’s Day in 2012 coincides with the festival of Purim, when Queen Esther took on Haman, the wicked minister of Persia. The story describes a triumph for female brawn, daring and courage. The Jews of 127 provinces were saved. Haman and his sons found their place on the gallows, and their property was transferred to Esther’s family.

As in most countries around the world, the position of Israeli women in today’s labour market is not brilliant compared to the male species. Simple stats show that women:

Earn around 15% less on average per hour.
Hold less full-time positions (66% compared to 87%)
Hold only 34% of the managerial positions

In a global context, Israel is doing quite well. “The country is ranked in 11th place among the 59 developed countries for the participation of women in the workplace. The rankings also list Israel in 24th place with regards to women in executive positions…” And at the top end of the scale, Forbes billionaire grouping, Israel has 13 members, including Ms Shari Arison.

There are three bright spots that I have picked up in the stats.

First, if only a third of managerial positions are filled by women today, back in 1990 that percentage was a mere 16%. That is a noteworthy improvement. And it should be pointed out that Israel’s three major political parties in opposition are led by women, as is the former outgoing chief justice of the Supreme Court.

Second, 56% of all university students are women, again another factor that is likely to lead changes in the future.

Third, figures released this week show that more men from the ultra-orthodox Haredi communities are now to be found in the workplace – a 7% jump to 45% between 2009 and 2011. The point is that in this section of society, it is common for the wife to get the children off to school in the morning and then work part of the day, while the husband studies religious texts on behalf of the family.

Therefore, not only will this employment shift release some pressure on the female section of society. It will also expose more stridently religious men to the machinations of life as a whole. They will no longer be so cut off and they will no longer be so dependent on government subsidies.

So, as ever, “booting the man out to work” is to be seen as a significant social and financial benefit for Israel as a whole.

4 March 2012

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Categories: Blog

Many a visitor comes to Israel and thinks of the wine industry. Whatever your faith, it is often part of your tradition – something you may have grown up with. And the sign of the local tourism industry is a large bunch of grapes, as per in the bible.

The fact is that until about 25 years ago, the Israeli wine industry was a bit of a misnoma. Aside from the Carmel brand, nothing much was happening. A recent survey from Dun & Bradstreet reveals a very different picture. There are now about 30 major wineries, supported by around 200 boutique set ups. 15 % of all produce ends up abroad with sales up over 5% in 2011, although much still goes to the kosher market.

One of the younger companies is a particular favourite of mine, Adir. It is located in the north of the country, where the vines benefit from the terrain of the hills of the Galilee. One of their most interesting offers is also one of their more recent ones, a “port-like” vintage. It is only 17% proof, but it is one of the best so far to have emerged in Israel to date.

The visitor’s centre at Adir is small but tasty and fun. Aside from sampling “several” of the wines, you can taste their own dairy products made goats’ milk.

As for the Israel wine sector as a whole, the country hosted two exhibitions within a month on the subject. 2011 was a bumper crop and output jumped. Connoisseurs constantly find themselves invited to yet more tastings. “France watch out” might be too strong a statement, but times have moved on.

2 March 2012

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Categories: Blog

I came across three situations in the past few weeks, each raising different challenges to my position as a business mentor. All the individuals are located in separate arenas of activity and each one posesses academic and commercial credentials.

Yet the scenarios left me wondering; when do leave a client to get on with their own devices?

Let’s call her Anita, who is desperately trying to rescue her business, which she very much believes in. However, due to family commitments, her work hours are limited. And due to a personal issue, she does not respond readily to pressures of time and responsibility.

Anita is very close to making a major positive difference in her operations. My task recently has been to show her how to make subtle yet potentially significant changes. On the previous occasion that we met, I could see that my encouragement was in danger of being counter-produtive. We mutually agreed that it would be best to end the session early. I left frustrated and anxious.

One week later, a happy Anita sent me an sms – her next big client was signed, sealed and almost delivered. She had shown herself a way to move byond her restrictions.

David has built up an excellent business with a continuous pipeline of clients. As I probed for issues to tackle, all the obvious subjects were gradually ticked off as irrelevant or under control. I was beginning to wonder if I could add any value at all to his workflow.

However, when I asked him to define and measure the success he is striving for, I seemed to strike a raw nerve. And this was particularly interesting, specifically when it to the fact that he never had established a proper vision for his company.

For all of David’s achievements, he is left wandering for “something”. He is now considering how to manage the concept of “continous success” and why it bothers him.

Simon described his background to me in great detail. With a deep belief that this was enough to set up in business, he demanded to know how I could help him. Can we construct a business plan in two hours?

I tried to understand Simon’s vision, but was asked not to go down that track. I began to move towards the subject of set up costs. After 20 minutes, he told me that he had done all this by himself, but had not brought the details to the meeting. I spoke about cash flow, but did not get too far with that.

Towards the end of the conversation, Simon rebuked me, saying that a mentor is supposed to listen. After that, he found difficulty in letting me finish any of my statements. Sic!

At that point, I realised that I would not be meeting Simon again, for his sake if not for mine. He had probably transposed his main problem – he had an issue with listening to others, but is refusing to acknowledge it. It will be interesting to discover if he uses another business coach or looks for a more personal and individual form of assitance….. will help him understand his own clients.

1 March 2012

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Categories: Blog

The Israeli media is being fed stories of 100 students, actors, activists and otherwise who have been sent around the world to meet contemporaries at university campuses. The articles describe the hatred towards Israel that the travellers encountered.

The Israelis tried to explain how in their view the opinions of the locals were misconceived and based on false premises. Their line was that Israel is a country that suffers from problems effecting its very survival, yet maintains a vibrant, open and democratic society.

No country is perfect. But are the allegations against Israel true or false? Here are three anecdotal pieces of evidence from recent days to help the jury decide.

ITEM 1

IsraAID is an NGO, which enables Israel to provide support to peoples in need around the globe. For example, it is facilitating the first ever gender-based anti -violence training programme to take place in South Sudan. 30 social workers will be placed in the Juba region, backed by three top-level Israeli therapists.

ITEM 2

Israel has not been totally succesful in absorbing the Ethiopian community into society. That said, you know that times are a changing, when an Ethiopian – and a female at that – is appointed by Jerusalem as its new ambassador in Addis Ababa. Belaynesh Zevadia emigrated to Israel in her teens. Armed with a masters degree and a host of diplomatic experience, she will find herself back in her country of birth for a three year stint.

ITEM 3

The accusations against Israel’s army are many. They serve to hide the official name of the army, which is ZAHAL – Israel’s Defence Forces. It is an phrase which has meaning on a day-to-day basis. The latest indication of this is how all recruits now have to give a bone marrow samples., which allows Israel to claim that it has the highest registration level in the world. And whilst certain diseases display have a higher level amongst Ashkenazi Jews, this is a data bank open to the whole population.

ITEM 4

The plight of women in the Middle East is well documented and continues to cause concern. Israel is not without its share of domestic violence issues, but that does not put it on a par with the likes of Iran nor the hostility shown by Egyptians towards female journalists in Tahir Square. After all, three of Israel’s leading political parties are led by women, as is the retiring head of the Supreme Court of Justice.

29 February 2012

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Categories: Blog

When the politicians and mandarins plotted the evolution of the Euro at the end of the previous century, there was one very specific stipulation for countries that wanted to join – government debt as a proportion of GDP could not exceed 60%. Golden rule.

And off the horses bolted. February 2012 and look at the EU as a whole or just the 17 members of the Euro currency system. The debt rate is around 85%. This is the economic explanation for why countries like Portugal, Greece and Italy are finding it difficult (impossible?) to pay back their debts. Just like a household which is not bringing in enough income, these countries are not creating enough wealth in order to manage their loan schedules.

Quietly, in the background of all this mayhem is Israel. The Ministry of Finance in Jerusalem has just announced that the country’s debt ratio is 73.3%. What’s so “wowish” about that?

This stat represents a fall from 2010 of over 1%.
The fall is in line with a trend commensurate for two decades.
The additional reduction came at a time of global economic slowdown.
The change came about despite the nominal level of debt slightly rising, indicating further real growth in the economy as a whole.

By way of comparison, the debt in the European region grew by about 10% and slightly more in the USA.

It remains to be seen how 2012 pans out. Growth in Israel is set to fall to around 2.8%. Unemployment will almost certainly rise from a 30 year low of 5.4%. There are upward pressures on government spending plans.

For now, all this is very encouraging financial news from the Holy Land.

26 February 2012

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Categories: Blog

Obama may just save America’s economy (and his election campaign). For all the gloom, it is possible that the UK has already seen the worst of its slowdown. As for much of the rest of Europe, I do not see to many leaders of commerce taking their holidays in Greece this year.

So why did CNBC run a feature last week on Israel of all places? Remember, CNBC is arguably the leading tv financial commentator reaching the salons of international corporate decision makers.

Well ostensibly, Michelle Caurso-Cabrera, one of the station’s leading anchors on the international scene, posed the question how the Israeli economy could continue to function in light of the threat from Iran. Slightly to her apparent amazement, she found that the Finance Minister, Dr Yuval Steinitz, was more concerned about European rather than Iranian meltdown. And the average person in the street was more hasled by mundane things like just wanting the railways to run on time.

Caruso-Cabrera mentioned that 90 Israeli companies are quoted on NASDAQ. She herself covered three on site stories.

Colorchip is developing a transceiver to cut dramatically the time of downloading videos from the net. This is the third start up for its CEO.
Sodastream now makes about 400,000 units a month, ensuring that it is one of the largest employers of Palestinians in the country. The result is soda pop is available in kitchens all over the world.
Brainstorm is developing a unique cure for Lou Gehrig’s disease.

Israel’s success is no secret to major American investors. Back in 2006, Warren Buffet’s team is rumoured to have wrapped up a US$4 billion deal in just ten days, when it brought out precision tool maker, Iscar, located near the border with Lebanon.

Last week, Berkshire Hathaway reported at 21% drop in profits. However, one of the few strong aspects of the group was Iscar, whose management team drew high direct personal praise from the boss.

22 February 2012

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Categories: Blog

The annual Mobile World Congress in Barcelona begins on February 27.

Read the trade mags and everyone is talking about the latest telecom hardware and software that is going to be launched – technology that most humans simply pretend to understand with a pathetic smile. Read Israeli coverage and all the media is talking about how a country of under 8 million will have the fourth largest representation at the show – around 8% of the booths.

So if telecom has been identified by many as the Fourth Industrial Revolution, the Holy Land has been a central part of that miracle. Very cool for us who live there, but is there more?

An interesting preview of the Congress from Shlomi Cohen in Globes discusses one of the key issues facing the telecom industry today. He writes: –

A smartphone in the Western world currently consumes around one giga of data a month, mostly video. This is expected to jump to 4 giga a month within four years, and data consumption by tablets and Ultrabooks will rise from 2 giga to 10 giga monthly………Solutions for diverting heavy traffic from cellular networks to Wi-Fi points installed in crowded cities have lately become a hot niche in telecommunications equipment, and large tenders are expected this year.

Mr Cohen then goes on to describe some of the Israeli tech on offer in this category. That is interesting in itself. However, whether or not the data is offloaded to WiFi, it needs to get back (“backhaul”) from an antenna node to the network backbone, and fibre – the technology primarily on offer – does not reach most of these nodes.

I have recently been talking to a new start-up called OWLinx, a spin off from the Jolt department of the American conglomerate, MRV Communications. At its peak, the unit achieved annual sales of over US$3m with little formal promotional effort.

What makes OWLinx different is their understanding and near unique capabilities in the field of free-space-optic (FSO) wireless data links. This approach offers a cost-effective connection from such nodes to the fibre network point-of-presence hundreds of metres away, over the air, at fibre speeds of gigabit and beyond.

To put it simply, this is a very convenient method to deliver large amounts of information at high speed. That means that with use of some compact hardware, owners of mobiles or whatever will receive data much much quicker.

OWLinx will not have a stand at Barcelona. The founders are currently initiating talks with investors. With the r&d complete, it is just a case of raising money to relaunch the marketing force. Next year in Spain?

Pages

5 ‘Qualities’ that get you to the top

Controlling your finances – a Palestinian perspective

Israel’s general election – 4 points that the politicians missed

Jason – New Immigrant Distributor

Medico Ltd – Health Care Centre

Book Are Us – Distributor of Religious Books

Business mentor, religious leader or shrink? You choose

Five laws of success in business and the success fee business model

Economic cost of war (1) – Israel

Who wants to help small business?

Multinationals in Israel – not just high tech

The direction of Israel’s economy – two anecdotes

Who needs a business mentor?

Israel, the Labour Market, and International Women’s Day

Holy wine and port

Should a business mentor “give up” on a client?

4 things the media does not tell you about Israel

Government debt – Euro zone or Israel?

CNBC’s take on the Israel economy

OWLinx, Barcelona and a unique telecom solution

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