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Business Under Fire

This past August building operators and managers were again under alert for terrorist activity, when the U.S. announced the capture of a suspected terrorist who had very detailed information regarding several financial institutions in New York, New Jersey and Washington D.C.

The government response to this alert was an impressive display of security measures undertaken in the financial areas of most major U.S. cities. Nightly news programs and morning papers were filled with pictures of heavily armed police and security personnel patrolling commuter trains or stationed on city streets. Mayors, Governors, and a host of federal officials took to the airways to assure Americans that they were doing everything that was possible to prevent another terrorist attack and to encourage the public to “carry on” with business as usual. But despite this flurry of activity and the accompanying reassurance for our safety, anxiety levels increased and business suffered as some wary and fearful Americans opted to stay away from areas and busnesses identified as potential targets.

Once again, America was reminded that we are at war with a nearly invisible enemy who is quietly plotting its next strike against us. And once again, business owners seemed to be taken aback, wondering what to do to reassure employees and customers of their safety and wondering what would be the consequences to their business if, God forbid, terrorists did strike at them.

During the midst of this activity, I happen to have been reading a book that was sent to me for review by the American Management Association. It was a pre-released copy of Business Under Fire - How Israeli Companies Are Succeeding In The Face Of Terror - And What We Can Learn From Them. Written by Dan Carrison, an Irish American business writer from L.A., and co-author of Semper Fi: Business Leadership the Marine Corps Way, the book focuses on learning from Israeli companies just how to successfully manage companies through a war of terror.

Begun in October of 2000, an intifada (Arabic for: breaking away) has been waged against Israel. Suicide bombers, snipers and killing teams have attacked innocent men, women and children within Israel and have wreaked havoc on the Israeli economy as tourist revenues, investment dollars and customers from abroad have turned away out of fear, apprehension and misunderstanding. Despite the blow to the Israeli economy this four-year campaign of terror has managed to inflict, many Israeli companies have not only survived, but have actually managed to post significant profits. And despite the randomness and indiscriminate nature of these terrorist attacks, the Israeli people still go about their business and personal lives on a daily basis with seemingly little concern for their personal safety.

To be certain, many Israeli businesses have failed and some Israeli citizens have immigrated to more peaceful regions of the globe. But for those who remain, the past four years of adversity and threat has only served to make both their remaining business enterprises and their personal resolve stronger.

Although written for the business community, Business Under Fire contains information that should be studied by every
American. We are in a war of terrorism and we most certainly will be the victims of future attacks. But it is how we respond to such attacks that will determine their success or failure. The main goal of a terrorist attack is not in-and-of-itself to kill innocent victims. Its goal is to terrorize the rest of us. The Israeli people seems to understand this all too well. In a nation that comprises the geographical equivalent of the state of New Jersey and around six million people, most Israelis know personally a victim of a terrorist attack. And with nearly one-quarter of the Israeli population being of Arab descent, the Israelis seem to have been able to distinguish between their true enemies and those among them that may share the same racial characteristics as their intifada foes.

One of the ideas that Business Under Fire expresses well, is that the damage inflicted by terrorist attacks, although devastating to the victims and their families, is made far worse by the perceptions conveyed in the media. In the book, Carrison conducts interviews with major executives in a variety of Israeli companies as well as with Israeli government officials. An overriding theme conveyed by those interviewed is that life in Israel is far better than is generally perceived by citizens of other countries. According to some interviewed, the reason for that perception is the propensity of news organizations to cover and broadcast every act of terrorism, while neglecting to convey the negligible impact such acts have on Israeli citizens and business as a whole. While most business leaders might react to such events by trying to combat the media’s broadcast perceptions, successful Israeli business owners have learned not to waste their time and resources in such futile attempts. Instead, these business leaders have learned to streamline their enterprises and adapt to the conditions resulting from such global perceptions.

Imagine what might happen to many hotels in the U.S. if suddenly, their occupancy rates plummeted to 20% or less and remained there for years. That is exactly what has happened in Israel. And while some hotels have closed or, like the U.S.-owned Hyatt chain, have pulled out of Israel, others have not only remained open, but have managed to upgrade their properties and post modest profits. Just how these Israeli hotel managers were able to achieve this is discussed in the book and is a lesson that every American business owner could learn from.

Another idea conveyed in the book and adopted by successful Israeli businesses, is to never market a business based on security. That lesson seems best described by the interview with Amos Shapira, the President of El Al Israel Airlines. Although El Al is generally recognized as the safest airline in the world from a security standpoint, El Al has not and will not market itself based on the particular aspect. As suggested in one interview, if security was used as a marketing tool, the effect would be to remind customers that there is something to fear. So Israeli businesses have learned well, how to use security measures, but also how to not make overt displays of such measures.

Entertaining, insightful, and well written, Business Under Fire is one of those books destined to be used at many management retreats and business schools in the near future.

A must read for any business man or woman, it is highly recommended for every American and especially for those in building management and the hospitality industry.

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