Which employee do you want to keep?

A few months back, I attended a seminar on “engaging employees”. How can a manager obtain the best from his staff? What will motivate them?

I have written extensively of the need to allow a worker to develop in their own space. Payment and smiles are not the only ingredients towards securing a productive employee.

A new article from the Harvard Business Review asks the question “how to keep your top talent”, especially once you have invested in providing them an expensive training programme. Surely, that should be incentive enough?

Apparently, one of the key mistakes of corporations is to assume that “high flyers” are the happy ones. Not so. And when they leave, it can be painful and expensive. In fact, the cost can be a double whammy. Carnegie estimates that it often takes up to 24 months to replace leading members of staff, which then impacts on work flows and revenue.

There is a flip side to this coin. Part of the fall out of the credit crunch has been a slow move towards appraising older workers. Arguably, the recession was partially caused by the enthusiasm of youth. It is an open question if a wiser and more senior commercial leadership in several countries would have led to a different set of circumstances.

In one of today’s economic newspapers in Israel, there is a major feature on how employers are reconsidering the benefits of utilising 50 year olds and upwards. Not so quick, but they give you  a solid, quality performance, often for slightly more money.

Is that enough motivation for the manager, who does he still just want to look at the direct costs?

Bags and motivated entrepreneurs

Crumplers is the wonder “entrepreneur” case study that everybody loves to read about. The founders dropped out of school, started an initial business that outsmarted the mega players, were forced out by a legality, and have moved on to something even bigger.

Crumplers manufacture and sell really good bags, specifically courrier bags. Nothing special there you may think, except for their handsome profits.

And that’s the point. Walk down your average high street, and you will find a least one shop selling handbags and similar attire. And you never find the one you want. Just a coincidence?

Daniel Citron almost won an internet competition worth US$15,000 to set up a new collection of bags. Yup, he too had seen an opening in the market.

A couple of months back, a client was looking for a bag to hand out at a conference she was organising in Jerusalem. Nothing complicated, just something presentable and with a logo. However, it took numerous phone calls and web searches and discussions to find a quality item, of the right size, practical, which did not come with a glaring bring pink backing.

What drives the Crumplers’ team? I do not know them personally, but let’s return momentarily to one of my favourite gurus, Dr Robert Brookes. His latest considerations on motivation is a must read and provides us with some answers. Remember, despite their talents, these people left school with few qualifications,  yet Brookes posits that: -

I have found that in both the business world and in schools, autonomy helps to create “motivating environments.” Affording employees, faculty, and/or students some choice does not minimize the authority of supervisors or managers. Instead I believe it enhances a sense of ownership, responsibility, and accountability in all members of that environment. As I have expressed in previous writings, intrinsic motivation is enriched when individuals are provided with opportunities to have their voices heard. So-called “top-down direction” frequently triggers feelings of resentment, lessening any possible satisfaction or joy associated with the activity.

 Brookes concludes with a very powerful comment from a colleague:

And we know that the richest experiences in our lives aren’t when we’re clamoring for validation from others, but when we’re listening to our own voice—doing something that matters, doing it well, and doing it in the service of a cause bigger than ourselves.

All Crumplers et al want to do is to help people, and they have shown why they are good at it.

Rosy economic forecast for Israel

Rafa is one of Israel’s oldest pharma companies. This week, I noticed a new sign on a developmental complex in Jerusalem, denoting where the company will build a new US$35m facility for 130 workers.

Just down the road is the Bank of Israel. This is another institution in a happy mood. Its revised predictions for 2010 and 2011 are a metaphor for optimism.

Growth of 3.7%, rising to 4.0% in 2011. Standard of living; 9.2% and 7.4%. Unemployment falling to 6.7%. And exports increasing at a steady 4.5%.

There are concerns if the stock market is too high and if the price of real estate is reflecting a bubble. But neither of these issues undermine basic economic fundamentals.

Next to Rafa is a new biotech centre, close to completion. Obama may not be pleased with Israel’s politicians, but the economy is pressing on regardless.

Israel’s economy celebrates 62 years of independence

This year’s Independence Day in Israel coincides with the “anniversary” of Herr Hitler’s birthday.

An irony, perhaps. Where as the failed Austrian painter talked of a Reich lasting for a thousand years, Israel’s Third Republic, despite a constant and continuing existential threat, is in its seventh decade. I will let others evaluate all the reasons for the country’s success, but one of them is the economy.

In the summer of 1986, Israel abandoned the mechanisms of protectionism that had served the country so well during its first traumatic years. It is often forgotten that when Israel was forced in to the Six day War of 1967, it did so emerging from one its deepest recessions.

Leap forward to 2010, and we have an economy based on innovation. The country’s hightech sector is at the forefront of the global cleantech revolution. Many analysts argue that the world is in the middle of a new industrial revolution in communications. Maybe, and at any telecom conference, you will find dozens of Israeli companies.

This push towards new social wealth is not limited to the sciences. I am working with a start up which has developed a prototype to replace printed cheque books. And come Christmas December 2010, you will see Israeli chocs on sale in Wal-Mart. 

Israel’s economic fundamentals are sound. Adjusted figures show that the economy grew at an annual rate of 4.8% in the last quarter of 2009, which only India and China could beat.

Israel’s population stands at just under 7.6 milion people. Roughly 25% are not Jewish. Despite the real threats of Hamas, Hizbollah et al, the continuing need to incorporate all – new immigrants, minority sectors, hundreds of refugees from Sudan, etc – is a need that works in parallel with the theme of innovation.

Yes, Israel is often criticised by others for not doing enough to help with integration. There is justice in some of those comments, although I have yet to find a perfect county that can preach without fear of being accused of hypocrisy. In parallel, I can proudly say that the importance of integrating all is a strong feature throughout much of society.

Look closely and you will see how innovation feeds off this ability to use the talents of all. The enemies of the people of Israel - from Pharoah to Hitler and on to the present rulers of Iran – have repeatedly tried to eliminate such freedoms and failed. Here’s to the next 62 years, and many more after that.

Cheesy investments on Tel Aviv Stock Exchange

Last week, I reread the 1990s classic: “who moved my cheese”. Four mice grapple with a new situation; having been used to a ready supply of quality cheese, the source dried up and each one had to work out what to do next.

Ever since the beginning of the credit crunch, I have been singing the praises of the Israeli economy and its stock market. The former is heading for over 3% growth this year. And investors have seen the main index climb over 110%, reaching a new record high this month. In May, the Tel Aviv Stock Exchange (TASE) moves over to the group of developed countries.

The Israeli economy is doing well. Many of the correct economic fundamentals are in place. Even interest rates are gradually returning to realistic levels. Yet, in the same breath, I must repeat what I have mentioned back in November 2009. The new status for TASE will not automatically bring an immediate bonus to holders of Israeli stocks and shares.

Until now, Israel shares have been a great bet if you wanted to hold shares in the group of emerging economies. Now Israeli stocks are competing with the big boys, and it represents a much small portion of a signficantly bigger pie. To quote a recent analysis:

Market sources have long warned of an exodus by foreign investors from the TASE and subsequent delays by new investors not rushing to get in after the upgrade on May 26.

(Meanwhile…) local investors are buying. Foreign investors are selling huge quantities and the public is buying, but this can’t go on, and at some point it will come crashing down. Everyone in the market knows this and they’re talking about it behind the scenes, but they’re keeping quiet outside.”

What is called for is not panic, but a reality check - an adjusted approach. Anything wrong with that simple advice?

 Go back to Dr Spencer Johnson, the author of the cheesy book. His preface includes the truism: “The best laid schemes o’ mice and men often go astray”…….written 250 years ago by Robert Burns.

How long does it take for people to listen, and learn?

Raise your glass to successful start ups

Most of us want to be successful, but are never sure what that really means or how to get there. For Maria Bartiromo, CNBC’s top female anchor, one key ingredient is self-knowledge, “…..the ability to define for yourself what shape your life will take, and how you will pursue success.”

Just recently, I have been looking at successful start ups, and what allows them to overcome the multiple obstacles in their path. Australia’s Snowy Mountains Cookies is one such example. The founders looked for an all-year round product that would also allow a young mother time off for family duties.

Significantly, they quickly identified a new need in the biscuit market, left open by one of the big guys. They plugged the gap by creating a quality product. The result is that after three years of operation, they have a client list including some of the continent’s biggest names.

Lone Tree Brewery also makes for a wonderful case study. Whilst I admit to a certain level of bias, because my colleague, Dorit Kosto, and I have been associated with the progress of the team, I believe that many entrepreneurs can learn from their experience.

A little over a year ago, we sat down with four people, who were very excited about creating a boutique brewery. Their philosophy included encouraging employment and tourism in a relatively undeveloped part of Israel. Each had qualifications in their own field. They talked with knowledge about raw ingredients and production processes. They came to us with a file, full of details.

What was missing was an answer to the ”what next” question.

And this is where they got smart. First, they sought help. Second, they learned to establish for themselves a realistic set of targets; timelines, budgets, task allocation. Third, while sticking to the overall dream, they moved from trying to succeed big overnight and began to concentrate on implementing a series of small, achievable tasks. 

Dorit and I met up with Lone Tree Brewery today at their new premises. No, it is not a large factory, but they are producing. And they have room to grow. One of the founders has had to leave the group, but the three remaining members seem to have very clear roles. They were hosting an open-house tasting session. No fancy pre-advertising campaign, but bottles of beer were being sold to many happy customers. 

Speak to our heros, and all are looking ahead. Pricing and marketing, investment, marketing strategy - again, they want to define and to break down the next issues into a series of targets, which fit into a realistic timetable. Interestingly, they seem to be setting a high price in order to position themselves as a quality product.

Is that a risk? Maybe, but a taste of the beers on offer more than justifies the initial strategy.

A big year for the Tel Aviv Stock Exchange

Founded in 1953, the TASE will join the grouping of developed markets in May 2010. This is a very positive step for the country’s economic development.

There are 614 companies listed in Tel Aviv. 53 are cross listed overseas. The current valuation of bonds and equities combined is approx US$400 billion.

2010 has started well for Israel’s stock market. Following the credit crunch, the exchange is now back at its all time high. Average daily volume have returned to 2008 levels. The finance sector now comprises just 25% of the total shares, just overtaken by telecom and technology related companies.

Israel is about to celebrate its 62 annual Independence Day, and this commercial achievement is something to shout about with pride.

When Bezeq fails to listen

Bezeq is Israel’s largest telecommunication company. Privatised, it still has a large control over land lines and other services. For example, my router is from Bezeq.

I wanted to work from home this morning. My refreshingly strong coffee soon lost its taste, when I realised that the internet was down. The usual switching on and off of dusty buttons led to nothing. I phoned up Bezeq.

I had a very pleasant 23 minute conversation with a young man – let’s call him B1 – who tried to help. He told me where to enter lots of numbers, to connect, do double clicks and to stand on my head. But nothing worked.

So, I could either wait 3 days for free delivery of a new router or get one myself. So, off I drove, straight into several lingering traffic jams. One hour later, I was back home. I plugged it all in, I phoned up the nice chappies on the help line, and then I noticed….nothing. Yup, it was “nothing”.

You see, however I played with the new router, there were no lights on the friendly machine. By the way, it’s a lovely box. They have changed the colour from black to white, evidently to express the purity of the service. In fact B2 was really pleased for me. It seemed that I was one of the very lucky few to obtain a dud router.

Could he register a complaint in my name? No, I had to phone another number. So left with the choices of waiting 3 days, driving off again to the Bezeq store or drinking a bottle of whiskey, I chose option number 2, just.

With no traffic jams and having found a new road, I was there in record time. Luck again, heh, and that was after I had filled up with petrol on the way. Keeping Bezeq’s help line busy is a heavy strain on my darling car.

I received another white router, which I insisted they tested for electricity. I do learn quickly. In fact, I was giving a unit in new packaging. Such an honour to be able to work with Bezeq.

Could I register a complaint, I asked rather delicately? After all, this is a Bezeq shop, located in the building of the national offices. Surely, if I use my mobile to phone a special number.

Whistling to myself and trying to avoid the signs to the local loony bin, off I raced to the car, smiling. I suppose the people around did look somewhat concerned. My teeth were protruding over some extremely raw lips. Actually, there were not much flesh left, but I was trying to smile through it all. I really was

Back home. On the line to B3, a most delightfully helpful person, he really is. We sailed through the procedure together. Press enter, he told me. Is the internet button now flashing? No, says me. I thought not, said B3.

I tell you what was lit up; the red danger sign inside my head. Just let me check something, says B3, who passed me on to Bezeq’s latest piece of boring die-while-you-wait musac. He returned in a jiffy to tell me with great gusto that he had detected a problem on my line. This will take up to 2 hours to fix.

B3 would not be drawn if the original router was faulty. He was most sorry to hear that I had already spent 4 hours on cordially chatting to half of Bezeq’s support group. And as for a complaint, he suggested something, but my yawn hid his answer.

With nothing left to do, I phoned 166, the complaints line. I pressed 1 for Hebrew, 2 to confirm my phone line, and several other numbers until I most inconveniently got through to B4, who could handle the issue.

She took my details. And then: “One minute sir, could you hold a moment. There is a fault with the system.” A few seconds later I heard her ask me to call back in half an hour, as the fault apparently was a very annoying fault, that would not go away – much like Bezeq’s management I thought to myself.

Could B4 call me back, when she was ready? No, that was against procedures, evidently designed so as not to help clients with a complaint! I assume that B4 heard the click, as I put the phone down.

The two hours did eventually pass by. Nothing happened. When I called back and spoke to B5, I was told that the problem was fixed, but Bezeq policy is not to call you back and confirm. But Mrs B5, I plead, my internet is still not working. Oh, and B5 discovered another problem, which required a technician to be sent out.

B5 calmly told me that a technician would turn up tomorrow, and I told her in a very uncalm manner that he was coming today. “Well, I don’t think you need to use that tone of voice,” responded B5.

In fact, I did have to. And I screamed again, several times, in order to get a manager, who spent over an hour with me and a rep from the server company. Together, nearly 9 hours after the initial panic, they sorted out the problem.

For the record, it is probable that the router was fine, but that there was a fault on the line. Once the router had been exchanged, everybody forgot that this would render as useless an existing password. Simple, no?

And also for the record, it is very probable that I will be moving to another internet supplier. Do you want to know why?

Bezeq also failed to hear that I am a licensed business mentor with local and international clients. Bezeq is not one of my customers, but now features on this blog site. I invites others to comment about Bezeq or to add their stories about so-called customer support from large organizations.

How cricket helped me gain revenge over Hitler

I love cricket. I am not very good at the game. I have not played since leaving school. But I follow the sport avidly.

However, latching on to the matches is just as difficult as participating. You see, living in Israel, we do not receive TV coverage of the games. Phrases like “overs. wicket or silly mid off” do not readily translate in to Hebrew. And most Israelis like immediate sports, which ignore the patience of cricket’s 4 day efforts.

BUT: Last Friday, I found myself in very surreal surroundings. In the heart of Tel Aviv, I was looking out on a game of cricket – yup 22 souls dressed in white (well, mainly white) could be seen chasing a small red ball. The Ra’anana squad was having its first full work out of the season.

Israelis looked on bemused. Why were we not following the rules on baseball? The pitch was plastic matting, allowing bounce to vary dramatically from “leap up suddenly” to “skid through”. And the surroundings did not allow for a village pub, but a main road and Tel Aviv’s high tech centre. Nevertheless, cricket it was.

Players came from multitude of backgrounds and ages. Matt is a New Yorker, who is studying engineering in Haifa and has been bitten by the “English” virus. We were graced with the presence of a career diplomat from Jerusalem, proudly sporting his club cap. Accents betrayed origins ranging from London to Durban and over to Melbourne, via Mumbai.

I was disappointed that there were no cucumber sandwiches on offer at the break. I was secretly hoping for some freshly cut delights without crusts, washed down by traditional stewed tea. But the Australians had turned up with their BBQ, and I had to accept that this was the Middle East. Burgers it was to be.

Some of the guys are serious players and have made it into the national squad. In fact the Israeli team is now in Europe’s second division. This July, Guernsey will host a competition, which will also feature France and Gibraltar amongst others. 

My own performance was mixed. I scored a few runs, but more than a few were taken off my own bowling. I had fun. I was playing a game that I had put to one side at school, because it had clashed with my religious principles. The big matches were held on Saturday, my Sabbath. Here, in Israel, I can practice my faith and worship my sport with equal freedom.

Yes, the muscles ached the next day. As I was reading the weekend newspapers, the value of this ”choice” was brought home to me very directly. I noticed that tomorrow, Monday, is Holocaust Day in Israel. Hatred, an inability to recognise that difference is what makes the beauty of mankind, led to the deliberate slaughter of six million of my fellow Jews.

Guernsey is part of Channel Islands, the one part of Britain occupied during the Second World War. Three Jewish women were deported from there all the way to Auschwitz, and did not return. Second Division or not, you bet I will be cheering on Israel come July.

Palestinian & Israeli economies moving in similar directions

Friends and colleagues have mentioned that the Israeli and Palestinian economies are going through a quiet period. No sensational news. No major international investments.

Nothing could be further from the truth.

Look at the stock exchanges in the region. The Palestinian market, located in Nablus and in Ramallah, is being plugged by Barings. In Tel Aviv, the market has climbed over 100% and is back at its previous all-time high of November 2007.

The West bank economy is clearly benefitting from a decrease in local violence. Tourism is up 50%. A new industrial park near Bethlehem is being supported by the French government. And Israel has admitted that it owes the Palestinian Authority hundreds of millions of shekels in back payments – a nice unexpected windfall.

In parallel, local consumption in Israel has been on the move. H&M recently opened large premises in Tel Aviv and in Jerusalem, with queues for the changing rooms taking over 30 minutes. IKEA’s furniture shop in Netanya is one of the most successful in the corporation, and their second Israeli outlet is proving just as popular.

The export market has also taken on a new aspect. While Israel is noted for its innovation and hightech applications, several Israeli retail chains can be found overseas. Clothing, fast food, cosmetics – Israeli shops are pushing themselves into new markets. And Israel’s film industry has been represented at the Oscars for the past three years consecutively. There is life beyond the conflict.

American and Israel may be having a spat. The PA and Hamas may be arguing over who is responsible for Gaza’s power shortage. And quietly, millions of people are trying to put the violence behind them and get on with their own lives – good for the economies and good news for investors.