Blog Archives - Page 11 of 12 - Michael Horesh Business Coach and Mentor

20 February 2012

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At the end of the day, when somebody approaches a business mentor for help, they are usually saying: “Pls Mr Genie, turn me into a big success”. I suppose that if life were that simple, then the Genie would probably not be in the supporting role but making mega bucks for him or herself.

What prompted this blog was the fact that last night I hit upon on a new powerpoint presentation on LinkedIn, which dealt with the theme of “business success”. I apologise for losing the link, but I did print two of the 42 slides.

Slide 12 noted that neither technology nor a product creates core value. It is the “business model” that makes the difference. And slide 14 refers to four questions, which together help to formulate a successful model:

What excites your customers?
How do you create value for your customers?
How do you earn money?
Who is on your team and what values do you pursue?

All very nice in theory. Then bright and early this morning, in walked a client, who could not fathom why a change in her strategy, which had been so effective to date, had evoked a zero response. She was in no mood for long analyses.

So we explored if the new approach was likely to appeal to the clientele. Not only did this barely receive a moderate answer, it was clearly evident that the customers would now receive no major benefit. In fact, my client realised that she had compromised her own vision in order to secure the new direction. So it should not have come as a surprise that there was to be no new revenue stream.

Overall result; a massive victory for the owner of the presentation and an interesting lesson for my client – but a lesson from which we can all learn.

18 February 2012

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Last week, I wrote about the success that Israeli companies have enjoyed in launching their apps on the global market. In parallel, at the end of this month, Israel will have the fourth largest delegation at the annual Mobile World Congress in Barcelona.

When the Israeli economy effectively shut down in 1986, it was known for trading in polished diamonds, arms and Jaffa oranges. The last two are still dominant, but number three on the list is now hightech – in all its forms and with great gusto.

Apps and mobiles are just one part of the new economy. Exits and FDI in 2011 did keep moving ahead. The continuous move of multinationals to set up r&d centres in the Holyland is another part of the puzzle. (For example, check out the Facebook event in Tel Aviv, scheduled for March 2012). However, my point is that there is something else going on.

Israel has a culture that drives initiatives forward from the ground upwards. For example, this weekend, the newspaper “The Calcalist” – Hebrew for the word economist – featured seven new companies in the field of cloud computing.

By definition, these companies have barely been around for more than 24 months. With names like Cloudyn, Dome9 and 6Scan, they have an average of 10 workers. And they have all already brought in their first million dollars in venture capital – in one instance, US$11 million.

Biotech can boast a similar story.Consider BioInvest Israel, which will open its doors again in Haifa. Investment groups are due from Italy, Poland, Japan and the USA to name a few. Why?

Well, take a company like Marx Biotechnology Ltd, which I have been concerned with for some time. Within a year, their small team of biologists have achieved POC to develop a diagnostic kit for the detection of the early stage of Graft Versus Host Disease. (Experts had said that it could take a decade just to reach this point.)

If Marx Biotech is successful, not only will tens of thousands of lives be saved every year. The kit will allow for a vastly extended use of stem cell treatment. It will be a test of the company’s skills to reach market in the predicted 24 months.

I can discuss similar examples in the field of Cleantech, and not just the usual set of wind or solar stories. Telecomm, Nanodiamonds, Security and more have all come my way in recent months – all stories where one or two individuals had a spark and ‘went for it’, triumphantly.

Slowdown or not, 2012 will be another fascinating year for the Israeli economy, challenging the boundaries of the accepted.

15 February 2012

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As an IMF delegation completed its annual visit of Israeli financial institutions and delivered an interim report, the Bank of Israel released some disturbing news. There is an “unprecedented” hole over US$1.0 billion in the Israeli government budget for 2012. The bank blames extra expenditure on social issues, which means that the deficit will become recurring, while treasury officials point to a downturn in tax revenues.

Which begs the question, what do our friendly international financiers think about the country’s economy?

To date, Israel has escaped the worst of the international dips and bends of recent years. Nearly 5% growth in 2011, and the IMF still believes the economy will expand by almost 3% in 2012. Great stuff. Add in to that stat that unemployment is expected to remain “acceptable” – about 6.5% – and things look rosy.

The IMF operatus memorandi is to make constructive criticism. It points to faults that can be corrected, before they have an adverse effect. With regard to public expenditure, the report was explicit:

The top priority is to keep public debt on a downward track over the medium term. This will maintain confidence in Israel despite strained international markets, and so allow some flexibility in the deficit path in the short term…..

Ooops! Whatever the reason for the gap, it has to be plugged and fast. Otherwise, gains made over several years can dissipate very quickly.

Another area for ripe for structural change concerns the ultra orthodox and Arab sectors of the populations, both known to be relatively poor and where large families predominate. Female employment is well below the national average.

Quite simply, the IMF estimates that if people in these sectors worked as much as in other parts of the population, GDP would accelerate by 15%. Just to rub the point in, the IMF noted that within a generation, the two groups will constitute around 50% of the whole population.

The plethora of other recommendations imply that Israel’s financial mandarins have much work to do. These include: –

Implementing a tax for holders of more than one property
Instituting mechanisms for handling a crash of a major financial institution
Reducing intervention by the central bank in the foreign currency markets.

Overall? Not too bad at all, especially compared to other and larger economies in the OECD. There again, this is a global dynamic economy, where you cannot rest on your laurels.

14 February 2012

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I recently met up with a former client. In a two room office in central Jerusalem, his team develops apps for smartphones etc. His order book is full to the extent that he does not have time to answer all his incoming mails.

How successful are Israeli apps in the commercial market place? Just by considering four press releases from the past few days, the answer must verge towards the very positive.

Take Android app developer Pops Ltd., who has raised just $1.5 million to personalize incoming message alerts, on the mobile phones, Facebook, e-mail, WhatsApp, etc. With under ten people on its payroll, this start up has managed to attract the attention of Mangrove Capital, one of Europe’s premier vc groupings.

“FootTraffic offers advertisers a performance marketing platform for location-based offers. In other words, this is not just another attempt to reach potential customers via their mobiles. Payment is only deducted if a sale is concluded. That is one large rung up on the sophistication ladder.

The slogan of CallmyName is ” a world without phone numbers”. A relative veteran in the industry – founded in 2007 – and one of the dozens of Israeli companies featuring at Barcelona 2012, CallmyName offers a complete package for dialling via names. Deals are now in place to take this offer into the UK, Germany, Singapore and elsewhere. All this is supported by a recent investment package valued at US$6.0 million from an overseas outfit.

Last but by now means least is Viber 1. Within 13 months of launch, it has supplied one billion minutes of free phone calls for smartphone owners in over one hundred countries. 54 million individual users and growing rapidly. Now that is an amazing achievement.

12 February 2012

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There are over 6,000 companies traded on NASDAQ, AMEX and the New York Stock Exchange (NYSE).

A search of Israeli companies reveals that 57 are currently trading in these markets, primarily NASDAQ. To give this stat some kind of perspective, no other country in the Middle Eastern region has even a solitary representative. UK firms number less than ten.

There are many reasons why Israeli financiers look to America to raise money, often overlooking closer destinations like London on the way. They range from ease of paperwork to intense marketing by NASDAQ to lower admin costs, and more.

The latest Israeli IPO in preparation for the American scene is Caesar Stone. This kibbutz based manufacturer is a well-known local supplier of quartz surfaces. That said, nearly 90% of its sales come from overseas markets, a position protected by a patent on its technology.

Despite the global recession, Caesar’s profits for the past year shown a significant increase. As an overseas media person told me last week, the story of Israel’s economic success has yet to be fully told.

(Disclaimer: I have no position in Caesar Stone)

10 February 2012

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Greece, Portugal, Italy and even France own economies that have been in the headlines for the wrong reasons over the past two years. The Arab Spring has obliterated tourism in Egypt, Syria and elsewhere.

It would be a gross exaggeration to say that Israel stands out in the Mediterranean region as a rare example of smooth sailing, but there are few who compare to it for now. Here are three pointers to explain why.

1) Israel as an economic energy power – whatever next?

Since at least 1973, Israel has been at the soft end of the politics of world energy. As the old joke goes, Moses led the people to the Promised Land but not to a country full of black gold. However, a recent syndicated article describes how Israel is learning to turn gas, discovered in large commercial quantities offshore, into pots of future wealth.

Whether this gas comes on-line in two or five years time, Israel’s GDP is likely to take a healthy leap forward. Infrstructure project should emerge in quantity. Amazingly, there is probably enough gas available to be exported. And there are now the first signs of oil deposits as well.

Cool. Now compound that info with the investments that people like Rupert Murdoch are making in shale-based energy sources. Or factor in companies exporting cleantech facilities like BrightSource. This makes Israel very well placed to cope with many industrial challenges for the next decade or so.

2) FDI and Israel – 2011 and 2012

Some Western powerhouses may be wathering in or approaching a recession, Israel continues to attract strong positive interest from the international financial community. For example, IBM, ATX and GE made substantial purchases of Israeli companies at the end of 2011. For the year as a whole, start-ups secured over US$2.0 billion of finance, about 70% above the level of 2010.

As for 2012, Conduit, a developer of website syndicated solutions and which has been around for less than a decade, is now valued at over US$2 billion. Nearly 10% of its shares are expected to be sold to an overseas investment firm. Better Place, the Israeli distributer of electric cars, has had little trouble raising money to prepare for its commercial launch. etc etc.

3) Is all so rosy?

No, Israel will not escape the fallout from the Greek financial fiasco. Growth for 2012 will be solid – around 3% – by no longer superb. Unemployment will start to creep up again from its record lows of around 5.5%. Manufacturers are already pessimistic about sales for the next few months.

In parallel, Israel carries too many social anomalies that must be tackled by a brave and responsible political leadership. The fumbling manner in which the current strike over outside contract workers in government ministries has been handled is not a good sign.

On the bright side, these are structural issues that can be dealt with (eventually), ensuring that Israel keeps itself competitive internationally.

9 February 2012

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Ma’an is a Palestinian news agency, based in Ramallah. Today, Thursday, it carries two seemingly contradictory headlines. On the one hand, Gaza could “fall into darkness” in 72 hours if it does not receive fuel. Conversely, it notes that Israel has just delivered yet another 200 truck loads of supplies to the area.

Palestinians will argue that Gaza is under siege from the ‘wicked zionists’, often a euphemism for a more sinister phrase. Israelis note that most of Gaza’s electricity comes from Egypt. What’s going on? Who to believe? Who to blame?

1) Who gets paid a salary and by whom in the Palestinian territories?

The IMF and World Bank have repeatedly complained that public sector employment in the Palestinian is too high to be consistent with economic growth. That said, according to another Palestinian news agency, Wafa, “the European Union and Sweden contributed €24.7 million to the payment of the January salaries and pensions of around 84,300 Palestinian
civil servants and pensioners.”

Yes, in a small economy, maintaining the circulation of money is essential. Some commentators have wondered how Brussels can release such sums so readily, yet haggles over saving Greece and Euro.

What may be more relevant is that this income stream derives from public funds, European taxpayers. They pay the wages of civil servants in Gaza, many of whom are Hamas operatives. And Hamas is officially designated a terrorist organisation. Maybe the money should go into building up a firmer tax collecting structure, which could release the EU from such double standards?

2) Just how poor is the Hamas government?

For all the latest attempts at rapprochement between Hamas and Fatah, the rulers of Gaza and the West Bank appear to be searching for a unity solely based on a common hatred of Israel. They are separate regions with different family tribes. The proof is locked in the gaps in economic performance, where Gaza always loses out.

That said, Hamas have managed to secure a budget for the year 2012, which is 22% higher than 2011. Significantly, for an organisation whose initial strength was in forging alliances in poor neighbourhoods, “main areas of expenditure are security, public order, social services and education, which represent around 62 percent of the total budget”.

Where the extra revenue comes from is uncertain? Certainly there are calls for outside help. Israeli papers have noted that Iranian involvement has been stepped up in the past year. Smuggling and associated incomes remain lucrative.

3) Will and can Palestinians pay higher taxes to fund shortfalls?

Prime Minister Fayyad has an outstanding record international banking. His recent statements show that it is quite clear that he intends to tackle a public sector deficit that has almost trebled since 2010. The Palestinians finally seem to have a politician, who openly refuses to rely upon false promises from Arab countries.

But raising taxes is not so simple. It is not just that debt collection is so weak – no structure, internal lawlessness, corruption, etc. Signs of the “Arab Spring” appear to have reached the West Bank.

Fayyad’s attempts to double income tax rates are unlikely to go through in full. And the financial shortfall will be further exposed if the American Congress cancels its aid support programme in response to President Abbas uniting with Hamas.

4) Is there hope for the Palestinian economy?

Israel took control of Palestinian areas in 1967. In the year 2000, the Second Intifada broke out and 125,000 workers from Gaza lost their jobs overnight.

The World Bank economist, Dessus, has tracked the period 1969 to the beginning of the outbreak of fighting. He found that annual average GDP growth was 5.5%, one of the highest rates in the world for that period. European contributions for most of that period were minimal. Arab countries did not step in. At least six universities were set up. Life expectancy lept from the low 60s.

Time for a different takeaway from the Palestinian spokespersons?

4 February 2012

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Time management is one of those subjects were few of us like to admit that we ain’t that good at it. You have survived school. Advanced education has come and gone. Work experience has been accumulated.

So why shouldn’t you know how to plan your day efficiently?

And yet, when all is said and done, so many of us just do not get done what we want to do, need to do, should do. Why? It is a subject that I come across time again as owners of small businesses try to organise themselves and don’t really hit the target.

Earlier today, I read a very interesting article by Zvika More, who specialises in helping children with ADD / ADHD issues. He describes the classic situation of a parent rummaging through the schoolbag of a child, discovering yet another yucky old sandwich from weeks gone by. And the parent yells at the spouse that they must do something and that this is the last time, and that there will be no more pocket money. etc etc etc.

Zvika raises the interesting point. If this was a child at kindergarden, there would be no raised blood pressure. However, for some reason, when the youngster reaches the age of six, it is assumed that maturity has set in. The child has been taught everything that they need to know by the ruler of the kindergarden playground.

Wrong. And wrong again, when we hope that the child will immediately know better in the next year or four. In fact, when does maturity set in?

Time management is a skill that has to be learnt. Some are naturally good at it or pick it up quickly, like playing a musical instrument. Some can be taught, just like a sport. And for some it is down right problematic, and continues to be difficult even if society assumes otherwise.

What can be done? Like everything else, first admit you have an issue and then find somebody to guide you, just like in your early days of education. Alternatively, you can continue to procrastinate and to put off not completing what is important. Then I suggest that you assess what you are missing out on.

29 January 2012

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The latest posting from Dr Robert Brooks was again littered with excellent thought-provoking pointers about how we run our lives. Looking back on his work, he surmised that:

….I learned that there were some relationships that in actuality were beyond repair and/or destructive to at least one of the family members. I came to realize that therapeutic progress was better assessed through the lens of personal control, namely, by examining whether individuals demonstrated the capacity to identify and initiate constructive action in areas over which they had control to change and/or avoid particular relationships.

After citing a case study about a Mr Larsen, who had been abused as a child and whose father had rejected a rapprochement, Brooks noted the client’s response:

Although he would have preferred reconciling with his father, he said to me with impressive insight, “You’ve often said that you have to focus on what you have control over. I had control over communicating with my father but not his response. I did what I had to do, and now that I know my father’s reaction, I can get on with my life ….

Now jump back to my field of mentoring, specifically the art of being a business mentor. Of my three meetings today, I was able to recall Brooks words on two occasions.

In one specific instance, a hassled middle-aged man described how he has been trying to set up a new distribution business. At his own initiative, within 18 months, he had achieved a lot. In fact, the key missing element was a heavy dose of phone-calling to attract new customers. Only, he had convinced himself that he was no good at marketing and that people would not listen to him.

I asked him to check a small data base in his possession. Ten minutes later, he had a list of 10 people to call and the opening of a smile on his face. He had even started ringing the first numbers. As he grudgingly agreed afterwards, he had got on with it and started doing things.

He asked me how I had succeeded in encouraging him to make that small change. The answer is not as Nike would have us believe: “JUST do it”. If it was that simple, nobody would be behind the ballgame.

I showed him that he had a reason to take control, something very important to him that he was letting other issues hide away. From there on, he could do the rest.

And there lies much in the art of mentoring – empowering people, showing them that they often possess the skills that they believed they lacked.

3 January 2012

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What’s the reward for financial prudence?

As Israel’s financial planners are finding out; just because you look after yourself according to the textbooks, it does not mean that you will secure the benefits.

Let’s look at the boring stats. Israel’s economy grew by 4.8% in 2011. Unemployment sunk to a record low of 5% in December. Inflation is under control. Oil and gas exploration is likely to produce a boom starting from early 2014. Everything should be rosy. And yet….

Welcome to Europe. Political and economic leadership has been sorely lacking from the EU big guys over the past few months. As the PIGS (sic) and others have led the founders of democracy towards a very gloomy financial disaster, the IMF and the Bank of Israel have gradually been revising downwards the outlook for the Holy Land. Current estimates put growth at “only” 2.8% – just enough to keep in line with population growth, although still ahead of most competitors.

Just how impressive would that achievement be? Well Israel has barely 7.8m people, excluding the Palestinian territories. It is the size of Wales, yet has mountains, 40% is non arable and has the lowest point in the globe. A Jewish State, around 21% is not Jewish, and there are violent external geopolitical pressures. Its relative spending on defence is disproportinately high in relation to its main economic markets.

Simply put, Israel is a country of “extremes and contradictions”. And yet, over the past decade or so, Jerusalem has created a business model based on innovation and sound fiscal management that allows the economy to grow.

Will the European downturn impact worse than feared? Will internal structural difficulties override political capabilities of Netanyahu? How will the Bank of Israel protect the money supply, while ensuring the shekel remains competitive in a period of weak global trade?

No, 2012 will not be an easy year to manage at the micro nor macro level. That said, Israel has kicked off from a solid base. See you in 12 months time.

2 December 2011

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Categories: Blog, Israel, Jerusalem

Type “Jerusalem” into google and you will end up with a million and one news items, which together seem to indicate that the holy city is burning all over; ultra-orthodox Jews bashing up each other, a new light rail system that has suffered delays and strikes, and the usual geopolitical turmoil.

Walk down 99% of the streets throughout the city and you will find a very different Jerusalem, one riddled with culture, multiple religious backgrounds, peoples from 200 countries and much more. How to explain this “split personality” to an outsider?

Eric Silver’s posthumous book, “Dateline Jerusalem“, neatly encapsulates the conundrum. Silver was a wonderful journalist, staunchly Zionist but never afraid to criticise Israeli governments. His wife has just released a compendium of his writings on Jerusalem that read like a version of “war and peace”, where he describes the beauty of what is for many but mixed with the pain of what often happens on the political stage.

And what is that beauty today?

Take the latest event, “Hamshoushalayim“, which is a corruption of the Hebrew words for Thursday, Friday and Jerusalem. Running every weekend during the month of December, the festival combines food and culture, dance and science, churches and synagogues. All reports from last year were positive.

This is no one-off piece of spin. The second annual Jerusalem Design Week is about to open in a grand building, designed in biblical theme by a German architect after the First World War. Jewish artists, Moslem musicians and overseas guests will all feature.

Earlier this week, I attended an event to honour new immigrants to Jerusalem. The mayor, Nir Barkat, gave the key address. He recalled that tourism to Jerusalem has close to doubled to nearly 4 million visitors over the past three or so years. His vision is for 10 million.

Realistic? Well the annual Marathon, scheduled for March 2012 is set to capitalise on last year’s success and thus should help to boost the numbers. And so I can go on.

So what’s happening in Jerusalem? As my daughter would say, plenty of “good stuff” for all. Shame that the international media cannot see fit to feature it.

28 November 2011

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Categories: Blog, Business, Israel

Here’s simple question for Western economists to consider. Aside from Israel, how many other countries have continuously reported 4% economic growth since 2003, including this current year? Apart from China, not too many.

Israel’s economy is similar in size to Greece, Portugal and Ireland, although it shares few of the problems of these territories. These countries ran up large debts. Bankers were prepared to allow the red numbers to grow for too long. And the politicians have dithered in coming up with a solution.

So when former finance minister and now Prime Minister, Binyamin Netanyahu, says: “”We must continue this responsible management. This means that we will need to reject with an iron fist populist draft legislation – both from the coalition and from the opposition,” it should be time for others overseas to listen in on Israel’s plan.

For all of Israel’s economic and high tech successes, the country will not be immune from any slowdown in Europe. So, it is hardly surprising that this week, the Bank of Israel is expected to announce a drop in the central rate of interest. And reports in the Hebrew press suggest of work in progress for an emergency budget, which will contain some severe cuts – if the looming recession was to demand it.

Just how serious is the Prime Minister? Can his Finance Minister deliver? What will be the position of the Bank of Israel?

It is easiest to start with the latter. The Governor of the central bank, Stanley Fischer, is an internationally renowned central banker. Over the past few years, he has taken on vested interest groups, local banks, government ministers and his own workers’ union, and usually won convincingly. Local and oversees observers are sure that he will look after his end of things.

The finance minister, Dr Steinitz, has deservedly built up an excellent reputation over the past three years. However, you begin to wonder just how much he has the full support of his boss. Oops – room for some worry here.

As for Netanyahu himself, he knows how to talk the talk, but…..If he were to give in on the wage demands of hospital doctors, it would make him very popular. However, that decision would kick in a chain of other public sector pay claims. The defence budget is almost certain to require a heavy upheaval, as threats surface on the borders of Syria and Egypt. And, as usual, the government is a coalition, compromised of many small squabbling factions; bad news for strong government.

hw will all these factors effect Netanyahu’s looming election planning? Personally, I have never seen him as a man who stands up to pressure.

There is much to praise about the Israeli economy. Shaul Rosenfeld’s recent blog makes for an excellent summary. What is not clear to me is what is the biggest threat to the recent economic achievements in the Holy Land – poor European financial leadership or a local team that will lack fight and direction at a critical moment?

9 August 2011

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On Monday August 8th 2011, as Wall Street and European markets crashed 5%, the Tel Aviv market rose 1.5%. Less than 36 hours previously, over 300,000 citizens – around 5% of the population – had taken to the streets, demanding “social justice”. Yet, figures just released show new car sales for 2011 approaching an all-time high!

So what is the true state of Israel’s economy? More importantly, if there is to be a global recession, what will happen in the Holy Land?

Let’s start with some basic, boring stats. All agencies are still reporting around 4% growth for 2011 and 2012. So even if that was to be cut by half, Israel will still be in a good position compared to most fellow members of the OECD. Unemployment is at a record low of under 6%. Foreign direct investment is there for all to see. Even the bubble in the housing market is showing signs of bursting.

On the other hand, new mortgages were down 25% in July, a month when they normally rise. Tax collection has fallen off during the summer. The average wage is 1.2% down. All symptoms of the next recession?

In addition, there is a forthcoming potential strain on the Israeli Treasury. Israel’s own Facebook social protest has risen out of virtual nowhere to a powerful movement for change in just four weeks. Most of the list of the demands will cost substantial amounts of money. However, as the demonstrations have received massive street support, the government will be struggling not to fork out at least some unplanned expenditure.

So for all of Israel’s many economic triumphs in the past two decades, the leaders have trampled on the middle classes, and got away with it, until now. But don’t forget; many of these same people have also received an improved quality of living, despite their complaints.

So, what next? If America and European political leaders continue to blither around with their debt issues, then few countries can avoid some fallout. Israel has good fundamentals – S&P has maintained its credit rating fairly high – and so starts this difficult period from a solid position.

In management, you are taught to fix problems by looking at success stories and learning from those experiences. Is there a case to apply that model to international economics? Time for world leaders to visit Israel and not just to complain about its policies?

16 July 2011

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Some years ago, I was on holiday in London, and happened to catch an item on the news about Israel. I felt that I was watching Jerusalem going up in flames. Overseas TV cameras happened to be conveniently recording, just as some school kids were spontaneously (?) rushed down a flight of steps following to a violent incident. Yelps from frightened children.

A few minutes later, a friend phoned me for an explanation. I responded by describing my incredulity. I did not believe that Jerusalem had been erased from the face of the map, just because of some clever camera work.

Now jump forward to July 2011. The international media is focussing on ultra orthodox Jews combatting the police or Jewish-Arab protests towards the eastern side of the city. And yes, these are serious issues. However, if that is what is occupying the lives of barely 7,000 protesters and police together, what are the other 700,000 up to?

Sheila Raviv writes a lively weekly blog about life in Jerusalem. Yesterday she described how:

Every summer something exceptional happens in Jerusalem on a Monday and Thursday. Shouk Mahane Yehuda becomes a giant nightclub!!! Jill, Irit and I went for supper on the pavement of Jaffa Street …… We sat watching to world go by – religious Jews, Arab Moslems, Arab Christians, secular Jews …… providing us with a constant floor show!

No, not just flowery words. My teenage daughter is spending much of this summer, watching live street concerts in the Holy City. For her, the key event will be the performance of Ziggy Marley on the 21st July. (No doubt, she will come home before midnight at least one evening this summer holiday!)

Move over to the commercial side of things. A local community group, Eden, has brought together other non-affiliated bodies to encourage financial rejuvenation for small businesses and shops in the main retail areas. These firms have suffered heavily in recent years from the Intifada and some poor central planning. For example, the new light railway is way beyond the original launch date.

As a result of the initiative, 200 city-based enterprises have already signed up for a heavily subsidised mentoring programmes. They will also be provided with improved social media facilities, enabling them to hook up with the growing tourist market.

What’s the good of all this great unreported news, if there are still major social and political troubles?

True, but there again, I learned this week that 800 ultra-orthodox women have finished their training as software engineers. This will encourage them to seek employment in an unfamiliar social environment and some will have to deal with non-religious people. If that is what helps bring people together in this very special and beautiful city, I am all for it.

29 May 2011

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Appreciate it or not, the Israeli economy is on fire.

The OECD has altered upwards 2011 growth predictions to 5.4%, well above the group’s average.
Unemployment is close to an all-time low, around 6%, and falling.
Marvell is significantly increasing its investment in the country.
2 of the top 6 companies at TechCrunch 2011 were Israeli.
Etc, etc, etc

And then along come the party-poopers. No, I am not talking about the pessimists. Fitch has warned that Israel needs to guard against higher debt. The gap between rich and poor is seen by many as too large and growing. (I agree).

People want to boycott Israel because of the Palestinian question. The latest profile story comes from Scotland. It is not just the actions of the Kirk, but “several districts in southwest Scotland will expand their boycott on Israeli products and bar stores from carrying English translations of Israeli books.”

All sounds very politically correct. But like with most spin, once you test it, you realise how feeble and hypocritical it is.

First, is such a ban practical? Obviously, the councils involved cannot disperse their decision by use of computers, because their machines are using an Intel tech developed in the Holy Land. They cannot ask London areas to join in, because this will send water bills through the roof. And they are ironically sending a sign to their national football team not to compete in the next world cup in Brazil, where stadiums are being built with Israeli tech.

A UK blogger pointed out tens of of other Israeli applications widely available in many homes and offices around the globe. Eg:

Before accepting any printed material, check that the supplier has not used the Israeli device that might have saved up to 50% of the ink used.
At home, do not use Facebook as many in-built and add-on applications are Israeli-developed.
Only senior staff may retain mobile phones for emergency situations. However the use of SMS (Texting) is expressly forbidden as this facility was developed in Israel.
Council restaurants and canteens must dispose of cherry tomatoes, which were developed in Israel. Employees must ensure that no cherry tomatoes are included in sandwiches brought into office premises.
No agricultural products from the following areas must be consumed as they use water irrigation and agricultural technology provided directly from Israel.

Clearly, the councils of Scotland will have their work cut out to be consistent. But why just Israel?

In terms of democracy, freedom of religion, tolerance of others, dozens of countries do not exactly rate strongly. Can you imagine Scotland banning the import of all plastic goods from China? How about not playing against teams with football players from several African countries? And what about the comments from Obama and Cameron on the oppression by Hamas in Gaza. Oops!

So again, why boycott and why boycott Israel? Will it bring peace to Palestinians AND Israelis? Will it damage Israel’s economy significantly?

A couple of years ago, a theatrical trades union from Eire proposed a similar move. A few weeks later, some of their representatives were taken through a Holocaust museum. One of the first exhibits reveals how the Nazis banned and burnt Jewish books. The message was not lost.

If we return to the Israeli economy, one of the reasons for its strength and stability is the role of Stanley Fischer, governor of the Bank of Israel. He is now considered a potential candidate for the vacant top job at the IMF. So, Fischer were to be chosen, he too would be boycotted because he is…….?

9 May 2011

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Categories: Blog, Business, Israel

On May 10th 2011, Israel will celebrate its 63rd Independence Day. Positive growth figures are everywhere. Over the past year, the population increased a further 2% to nearly 7.75 million and the economy moved forward by around 4%.

The economy has come a long way in 6 decades. Back in the 1960s, the country was still securing barter deals with the Soviet Bear, using Jaffa oranges as currency. In the 1970s, the defence budget amounted to a massive third of the GDP. By 1986, Shimon Peres, then Prime Minister and now President, had to freeze wages and prices. An economy that had cowered behind tariffs was about to be exposed to the world.

Leap forward a generation to today, and Israel is an economic success:

In 2010, the country was accepted into the OCED and the top rank of stock exchanges
It is a leading force in cleantech, particularly solar and biomass techniques
For years, Intel computers have been powered by the success of its 3 r&d centres in Israel.
The industrial revolution, as driven by the communications industry, continues to feature a massive effort from the Holy Land.

Put it another way, there are not many OECD countries that have emerged from the credit crunch so proficiently. Unemployment is at a near record low and falling.

For international investors, there are large positives to be found. It is not just about VCs or choosing the right share. Large public utilities are being sold off. The Port of Eilat is looking for a new owner form overseas. And a tender has been issued for the new metro in Tel Aviv. The Electricity Corporation could be next.

True. Not everything is perfect. The OECD has yet again warned about the increasing gap between rich and poor. The Bank of Israel has actively warned that the continuous rise in housing prices could threaten the economic stability. There again, of the near 200 countries on the globe, I am not aware of one state without some financial concerns.

And is there a lesson in this for others, especially neighbours in the region? Israel has learnt to forge success, despite on-going threats to its existence. Decision makers in Jerusalem long ago came to realise that an economy based on crying and requiring international loans is not a recipe for success.

The way to build a better society for all is by creating the conditions to let the nation use its natural skills.

8 May 2011

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Categories: Blog

Along with countless others, I am a big fan of Guy Kawasaki. One of America’s leading marketing guru’s, who cut his teeth back in the 1980s with Apple, he has nearly 350,000 twitter followers and a wonderful set of web postings.

The first time I read his work was “How to drive your competition crazy“. It came to print over 15 years ago. Despite the onset of social media and other tech, it is still relevant today.

Kawasaki’s latest opus, “Enchantment“, is all about influencing people – customers, staff, bosses et al; not by ‘buying them out’ but through persuasion. If I had to sum up 200 pages in one sentence, it is a very obvious summary of how to be nice to others and then succeeding.

Very obvious? Well, why don’t we all do it?

I know of one hightech company, where a new management team has been brought. Letters of encouragement preceded firings, debt reduction, and more letters of platitudes. Kawasaki’s suggestion to allow employees to master skills, while gaining a sense of autonomy and purpose, has been thrown out of the window. Innovation soon found itself going the same path, and sales are now static.

Why? I am no shrink, but I understand that the bonuses of the board have not been cut too severely. What the execs fail to see is just how much extra they could have received if they had enchanted their workers.

If we think about it, we are all faced with such annoying examples every day. A couple of weeks back, a service company offered me a “special deal” to extend an insurance policy on household electrical items. They were trying to force me with sweet pressured talk into something good for them, but nothing brilliant for myself. Nope – I will not be going back to them.

How about politicians? We all notice how they suddenly up on our doorstep just before every election. Do they think we are that stupid? By the way, that is why groups like the Muslim Brotherhood are so successful, because they operate in poor neighbourhoods all year round.

At the end of the day, people probably ignore the basic rules of enchantment because they are too selfish or do not have the time. Some get away with it. Some make a fortune in the short term but then move on.

What the ethics of enchantment offers is a slow steady way to continued success. Kawasaki’s book is an excellent road map for that journey.

30 March 2011

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Categories: Blog, Business, Israel

I have just returned from mentoring my latest client, a fast food shop with a wonderful local clientelle. And they have decided to join the 21st Century, looking to set up a website.

The reason is clear enough. Everybody is doing it; searching for ways to ramp up their unique virtual content or message in order to increase profits.

I recently tweeted the article by Sonia Simone: The Simple 5-Step Formula for Effective Online Content. The author asks a basic question – “What makes some content marketing succeed, while other writers work and work and never seem to get anywhere?”

And the answer is short and self-explanatory.

All of the “rules” of great content marketing come from one rule: put your audience first. It’s not about how much money you need to make with this launch, where you want to rank on Google, or what your cat had for breakfast this morning.

It’s about them — the readers, prospects, and customers — not you. (original emphasis)

Earlier this week I attended the latest event of the Jerusalem Business Networking Forum. Around a 100 people gathered to learn about the intricacies of social media from 5 experts in the field.

Rabbi Issamar Ginzberg – Using Testimonials to make your Website Visitors Buy.
Mike Mintz – Facebook Advertising That Gets Attention for Your Business.
Hillel Porath – Generating Business Leads Using LinkedIn
Debi Zylbermann – Bringing Traffic to your Website with Link Building.
Charlie Kalech – Defining a Keyword Search Strategy for Your Site

Read their blogs. Check them up on google. All really whiz people with many credits to their names. If they had one message, which they could echo together, it concerned the customer, the client, the one who is being searched for and targeted.

In other words, it is not just a case of plugging info that you find thrilling, If you want to find this person – a.k.a. a new source of revenue – via a web presence or Facebook or whatever, you have to understand what makes them tick and then write something on their terms.

The customer determines the size and colour of the crown jewels for the monarch.

21 March 2011

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Categories: Blog

Let’s be frank. Colonel Ghaddafi is not a pleasant man. The NATO / UN / EU or whatever coalition is right not to trust him. Cameron et al have put themselves in front of the world media to say that they want to help Libyans decide their future for themselves, without fear of oppression.

I believe that these world leaders are sincere. I am sure they are repulsed by the stories of previous torture emerging from Benghazi or wherever. But, let us be clear, just what do our twenty first century knights in shining technology armour really want to achieve?

Are they looking to end terror of local groups or ethnic minorities?

That would be nice. But, Ghaddafi has been torturing opponents for years, and nobody said a word. Libya was even chair of the UN committee for human rights last year. So, it is not just about trying export the Geneva Convention to new countries.

Let’s take this argument one stage further. President Mubarak was no saint, but the West loved him and Obama revealed one of his most famous speeches at Cairo University. Mubarak maintained the peace treaty with Israel and kept the Muslim Brotherhood at bay. When Obama finally turned his back on the Sphinx, these planks of stability were crashing to the bottom of the Mediterannean.

Elsewhere, William Hague, Britain’s Foriegn Minister, has called on leaders in Bahrain, Oman and Yemen to show restraint against demonstrators. You must be joking! They have not done so in the past – where were you then Mr H? – and they are hardly likely to learn this new art in 2011.

And as for creating a new order at the UN, words fail me. Iran has just become a panel member of the committee to support women’s rights. Hypocrisy? Chutzpah? Stupidity? I will let my readers choose, and then ask why this is allowed to happen without protest.

It is the “Damascus conundrum”, which fully exposes the malaise and emptiness of Western thinking. Syria is a police state that arrests and kills opponents in quantity. It has spurned a peace opportunity with Israel in 1999. It is a proxy of Iran. So surely if the violent demonstrations lead to a toppling of the Assad dynasty, that will be good news for Europeans?

Not necessarily so. Who knows who could replace the current regime. Many of the demonstrators see Assad as a traitor and are demanding a more Islamic republic……………just like the Muslim Brotherhood in Egypt. Back to square one?

Fortunately, there is one thing that everything all sides can agree on. Israel is in the wrong. The world blames repression in Gaza on Israel, and ignores continuous reports of Hamas aggression against locals. When five so-called settlers are murdered in their sleep, world media downplays the story. When reporting back to the British Parliament from a recent tour of the Middle East, and as riots continued all over the region, David Cameron made a fairly large swish of his verbal sword in the direction of Israel’s policies.

Amazingly, it is one of Israel’s fiercest critics, the Guardian newspaper, that noted just how pathetic and outmoded this diplomacy has become.

Our absurd obsession with Israel is laid bare.

The Middle East meant only Israel to many. Now the lives of millions of Arabs have been brought to Europe’s attention.

The European Union, which did so much to export democracy and the rule of law to former communist dictatorships of eastern Europe, has played a miserable role in the Middle East. It pours in aid but never demands democratisation or restrictions on police powers in return. That will have to change if the promise of the past month is to be realised.

20 March 2011

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Categories: Blog

Earthquakes occur in the Holy land roughly every hundred years. The last major disaster occurred in 1927. So, by the law of stats, something big is round the corner.

This month’s tragedy in Japan has only served again just how unprepared Israel is for the next (inevitable?) earth shattering event in the region. Despite reports from the ombudsman, debates in the Kenesset and appeals from academics, “the state’s fund for dealing with damages from an earthquake, a fund which exists and operates in countries like Japan and is supposed to supply solutions for the immediate economic needs – is empty.”

But as Japan was facing meltdown, the government of Israel had to deal with two more immediate disasters.

Late Friday night of the 11th of March, two terrorists broke into the town of Itamar on the West Bank and murdered 5 people in their sleep. One of the slain included a three month old toddler.

CNN did not consider it a terror incident at first. The BBC downplayed the act. Sky ignored the story entirely.

As for the government in Jerusalem, it failed to realise that it had to compete for media airspace with the horrors in Japan or with images of the civilians trying to combat Colonel Ghaddafi. Graphic pictures of the victims were released far too late. The mini humanitarian debacle, and its implications for the fragile peace process, was missed by the world.

Then, a few days later, Israeli commandos boarded a ship, the Victoria, which had sailed from Turkey and was destined for Egypt. Intelligence reports indicated that it was bearing Iranian weapons for Hamas . Bingo! The top brass in Tel Aviv had got it right, and a big photo op was arranged for the next day.

BUT, somebody had forgotten to explain to the Mossad how to host international journalists and cameramen. After keeping the visitors hanging around in the heat for 2 hours and with few briefings available in English, 200 frustrated media people departed the scene…with no story.

So, the world will never know how hundreds of tons of weapons were prevented from reaching the hands of terrorists in Gaza. And what would Hamas have done with these arms of destruction? As reported by the BBC,

Civilian areas in southern Israel were heavily shelled by Palestinian terrorists in Gaza on Saturday morning (19.3.11), when more than 50 mortars were fired at the regional councils of Sha’ar Hanegev, Eshkol and Sdot Hanegev.

These are stories are real interest. Large numbers are being placed in danger or slaughtered by those who value life of others to the same degree as the Colonel in Libya. The world ignores. In parallel, many of the official Israeli spokespeople are so incompetent that they are frequently unable to make a difference.

It took a Palestinian journalist to pin point the dichotomy. Khaled Abu Toameh, discussing the complexities of Palestinian spin, concluded:

It is disgraceful that while Israel admits Palestinian patients to its hospitals, Arab hospitals are denying them medical treatment for various reasons, including money. But then one is reminded that Arab dictators do not care about their own people, so why should they pay attention to an 11-year-old boy who is dying at the entrance to a hospital because his father didn’t have $1,500 handy? But as the death took place in an Arab country – and as the victim is an Arab – why should anyone care about him? Where is the outcry against Arab apartheid?

Where has the West been until now? Why does Israel not shout out more about this hypocrisy? And who will remember that Israel once again is one of the first countries to send a medical team to help earthquake victims, this time in Japan?

Pages

So you want to set up a successful business

Israeli start ups – the next generation

Did the IMF give a positive report about the Israeli economy?

Israeli apps and the global market

USA stock markets – Israeli companies

Israel amongst Mediterranean economies

4 Takeaways on the Palestinian Economy – February 2012

Bad at time management – blame your kindergarden teacher?

Mentoring – how to take control of a business

Israel’s economy looks into 2012 and finds…..

What’s going on in Jerusalem?

Time to learn (again) how to run economies sensibly

The unreported rough and tumble in Jerusalem

Israel’s economy – does the boycott argument make sense?

Creating an independent economy in the Middle East

Why people ignore enchantment

Crusaders in 2012: What the West cares about in the Middle East

Israel fails the earthquake test

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