Feral Jundi

   Outstanding book, and I give it two thumbs up.  I don’t get a chance to read many books these days, and this was a book that I wanted to get my hands on and read ever since it came out. No disappointments either.  So let me do a run down of what inspired me, and how this book relates to our industry.

   I also want to mention that I realize that the US has given aid to Israel.  So you could easily say that their economy and war machine has benefited from that infusion of aid.  But the return on investment in Israel, has been phenomenal for the amount of patents, inventions, and business innovation that has come out of that small country. How is it that Israel– a country of 7.1 million, only 60 years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources– produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada and the UK? How can anyone look at how much has come out of Israel, and not be inspired or curious as to the ‘why’?  With that said, lets get started.

   If I was to sum up the theme of this book, it would be the Hebrew word ‘Davka‘, or ‘to succeed in spite of’.  The Israelis are surrounded by people and countries that hate them and want nothing more than to destroy them.  In turn, the Israelis have to be smart to survive and they have to have a strong military that can deal with multiple threats. Do to such a small population, everyone must serve in the military too.  They also need a vibrant economy to pay for it all.  And like Dan Senor and Saul Singer have so eloquently spelled out in their book, the Israelis know exactly what it takes to survive.

   It is a country filled with entrepreneurs who are not afraid to fail, and they all have gained valuable leadership and innovation experience at an early age while in the military.  The companies in Israel are extremely innovative and are resilient in the face of war, because of this military infusion in their culture.  It’s not because they want to be a militaristic society, it’s because they have to be, do to a shortage on manpower.  It is that dynamic, that has helped produce such highly resilient economy filled with entrepreneurs.

   So let me cover some points as a teaser that really stood out for me.  The Oracle of Omaha, Warren Buffet, actually invested in an Israeli firm, and that was something he promised he would never do.  At face value, investing in a company located in such a volatile part of the world, doesn’t make sense.  But because the companies in Israel are driven by Davka and have a supreme dedication to the customer and delivering on their promises, that during times of war, production levels actually increased.

    During the Gulf War 1, the Israeli economy persevered, because the thinking was that Saddam would not get the best of Israel or impact it’s economy negatively.  The production levels increased during that war, just because they wanted to succeed in spite of the attacks.  The same thing happened during the Second Lebanon war, and production levels increased.

   These companies were also run by reservists or former IDF, and that battlefield resolve translated into economic resolve in the face of crisis.  Buffet recognized this, and that is why he invested there.  Cisco has bought nine companies in Israel, and the list goes on. Everyone knows that the Israelis produce the most innovative stuff, and they are extremely resilient in the face of crisis.  Investors love that stuff.

   Israel also has a culture in which the military veteran is highly regarded, and business recognizes the value of that veteran.  It is much like how after WW 2 in America, where if you were applying for a job and ‘weren’t a veteran’, you were an oddball.  In today’s America, it is the other way around.  We have one half of the society that has never served in the military, and really doesn’t understand the benefits behind hiring veterans, and then we have the other half of society, that does serve or has served, and understands those benefits clearly.  We are not taking full advantage of this leadership resource.  Today’s business is also missing out on the innovation capabilities of this abundant resource, and continue to think that they will get better leaders out of ‘universities that produce book smart kids’, but certainly fall short in the leadership manufacturing department.

   The book also argues that the veteran from the IDF, is more innovative because of the environments and missions they have had to participate in.  Because in the IDF, there is more emphasis placed on unit level battlefield innovation, in order to solve problems.  They don’t depend upon some general or colonel to make those decisions on the ground, they depend upon that young IDF soldier to come up with the necessary solutions and innovations in order to win the fight.  Plus, innovation in the military, is a necessity if you want to win.  You are constantly trying to find the strategy and tactics necessary to defeat an enemy, and that takes analysis and synthesis.  Or what Col. John Boyd calls, ‘building snowmobiles’. In my own studies, I have notice the pattern in PMC or military victories, in which the victor was often the side that had more guts, resolve, and better leaders and had implemented an innovative strategy/tactic/weapon to win that fight.

   Going back to the divide in the US, most businesses really don’t understand how to read a veteran’s resume or understand the level of leadership and adversity that they have had to go through as leaders in the military or war.  In Israel, everyone understands what it means to be a Commando or Infantryman, and they know how to use these folks to great effect.  In the US, not so much.

   In fact, and this is where I go on a tangent, I think what you are seeing in the US is that because business really doesn’t understand the war veteran and their value, that veterans are just defaulting to where they know they are accepted.  They become cops, firemen, or they get into manufacturing weapons parts or tactical equipment, or they get into training and contracting in this industry.

     I want to specifically mention the weapons and equipment market, because in the last ten years or so, I have seen an explosion in innovation and design for specialized weapons parts and equipment.  The sewing machine or CNC milling machine has been around for a long time, but it seems like something else has happened recently to bring up the innovation levels and the entrepreneurial spirit of the folks that create these start-up companies for that stuff. Could it be that 9/11 was the only reason, or is because of the infusion of leadership and innovation in these companies? I say it is both.

   Low and behold, most of these current companies that produce this innovative stuff, is filled with veterans.  Guys who know equipment, who have had to carry that stuff out in the field, who know and care about quality, and have the guts to go out there and get the financing to start up a company to make that product.  If they fail, they just start up a new one.  The reason why that failure is not that big of a deal, is because most veterans know that there is nothing worse in life than a war.  If their business fails, no one dies, but in war, if you fail often you or your buddies die.  So veterans just keep at it, and don’t get hung up on the failure thing.  They also know how to manage people, and especially how to manage other innovative and war experienced veterans.  As a result, you have companies that are veteran founded and run, that really kick ass.

   Of course you also have veteran owned companies that do not do well.  I highlight that all the time on this blog.  What could be happening here, is that many of the CEO’s of today’s PMC’s are not veterans of todays wars.  Or they were guys that really were not tested on the field of battle.  These are guys that never had to tell a Lieutenant in their unit to stop doing what they are doing, because they are going to kill someone.  These CEO’s really don’t understand why questioning authority is sometimes a good thing.  Or these are the guys that are used to a military hierarchy where subordinates never questioned the authority of the higher ups, probably because those higher ups never killed anyone accidently with poor leadership and decision making in a war time environment.

     Today’s young war veterans are more apt to probably call it like they see it, and I am hoping that those are the ones that will eventually come into the fold and really infuse some leadership and common sense into these poorly run companies in the US. They will also be infusing that same leadership, battlefield innovation, and no BS common sense into US politics and business. And as we can see in this book, this is a very important concept to business and politics in Israel.

   Another interesting thing mentioned in the book, was the IDF hierarchy.  Their ratio of officers to enlisted is extremely low.  As a result, young soldiers are put into command positions and are given a ton of responsibility.  The IDF also does not have strict rank policy.  The book mentioned that in a room full of colonels and one private, that if they all wanted coffee, the guy closest to the coffee pot was the one that made it. If it was the colonel, then the colonel would make it and gladly do so because that is the respectable thing to do. There is not a culture in their military that expects the private to make that pot of coffee for everyone.

     It is also normal for doubt and questioning to take place within the military units.  A private could tell a colonel that ‘that’s not the way it is done, do it like this’, and that is totally acceptable and common.  Hell, there are some cases where units literally voted officers out of a unit, all because that officer did a terrible job. That is the culture of the IDF and Israeli society, and because people freely question authority, that there is more efficiency within the companies and military units.

   In other words, the Israelis are all about giving and receiving feedback.  Dan and Saul also brought to light a George Bernard Shaw quote, that I just loved. “If you have an apple and I have an apple and we exchange these apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.” Awesome.

    I think that quote sums up beautifully why companies should seek the feedback of their employees and customers.  Those ideas in the form of feedback, is like gold or whatever precious metal that you can think of.  The Israelis have a society that totally exemplifies this concept, and I think companies and CEO’s out there reading this should understand the power of this concept.  That’s if they want to have successful and innovative companies. Not to mention that ‘people will support what they help to create’ element of this idea exchange.  Powerful stuff, and I highly recommend this book. –Matt

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Product Description

START-UP NATION addresses the trillion dollar question: How is it that Israel– a country of 7.1 million, only 60 years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources– produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada and the UK?With the savvy of foreign policy insiders, Senor and Singer examine the lessons of the country’s adversity-driven culture, which flattens hierarchy and elevates informality– all backed up by government policies focused on innovation. In a world where economies as diverse as Ireland, Singapore and Dubai have tried to re-create the “Israel effect”, there are entrepreneurial lessons well worth noting. As America reboots its own economy and can-do spirit, there’s never been a better time to look at this remarkable and resilient nation for some impressive, surprising clues.

*****

Editorial Reviews

From Publishers WeeklyHampered by an Arab nation boycott that makes regional trade impossible and endowed with precious little by way of natural resources, Israel has beaten the odds to become a major player in the global business world, especially in the technology sector. With the highest number of startups per capita of any nation in the world and massive venture capital investment, Israel is one of the world’s entrepreneurship hubs. Senor, senior fellow at the Council on Foreign Relations, and Singer (Confronting Jihad) track Israel’s economic prowess using a number of factors, including the social networks and leadership training provided by Israel’s mandatory military and reserve service, a culture of critique fostered by centuries of Jewish tradition and an open immigration policy for Jews that continually restocks Israel’s population with motivated people from around the world—all of which foster a business climate in which risk is embraced and good ideas are given a chance to grow. The authors ground their analysis in case studies and interviews with some of Israel’s most brilliant innovators to make this a rich and insightful read not just for business leaders and policy makers but for anyone curious about contemporary Israeli culture. (Nov.)

*****

Product Details

• Amazon Sales Rank: #432 in Books

• Published on: 2009-11-04

• Original language: English

• Number of items: 1

• Binding: Hardcover

• 320 pages

Features

• Start-up Nation: The Story of Israel’s Economic Miracle by Dan Senor & Saul Singer

Review’A rich and insightful read not just for business leaders and policy makers but for anyone curious about contemporary Israeli culture’ PUBLISHERS WEEKLY

Review”There is a great deal for America to learn from the very impressive Israeli entrepreneurial model… START-UP NATION is a playbook for every CEO who wants to develop the next generation of corporate leaders.”(Tom Brokaw, special correspondent for NBC News, and bestselling author of The Greatest Generation )”In the midst of the chaos of the Middle East, there’s a remarkable story of innovation. START-UP NATION is… a timely book and a much-needed celebration of the entrepreneurial spirit.”(Meg Whitman, former CEO of eBay )”Senor and Singer’s experience[s]…come to life in their illuminating, timely, and often surprising analysis.”(George Stephanopoulos, anchor of ABC?s “This Week” )”No one else, in my judgment, has written regularly about Israel in recent years with more clarity than Singer.” (William Kristol, Editor of The Weekly Standard )”An edifying, cogent report.”(Kirkus )”A rich and insightful read.”(Publishers Weekly )”Saul Singer’s Confronting Jihad should be mandatory reading for anyone, layman or expert, interested in the real Middle East.” (Michael Oren, historian and bestselling author of “Six Days of War” )

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