Cultural Crossroads: A US based company president reveals the realities of working for an Israeli company

As many Israeli and other non-US companies continue to recruit US based executives for their US offices, our March newsletter presents an eye-opening interview with the US based president of an Israeli subsidiary whom we recruited 4 years ago.?

This executive previously worked in the US for an Italian company as well so he is well versed working in a multi-cultural environment.? His experience will interest non-US managers planning to recruit staff in the US as well as US based managers considering a position with a non-US company.

We will call the US President “John” - not his real name.

Chuck Asked

John - as you know we recruited you 4 years ago to lead the US arm of an Israeli B2B company selling into industrial markets.? In today’s discussion, let’s discuss the recruitment process you went through and your day to day experience in this role.?

John’s Response

Thanks for inviting me to do this interview, Chuck.? I am happy to cooperate and provide insight for others contemplating this kind of role.

Chuck

?When we reached out to you originally, you had a good position as VP Sales and Marketing at an American company. Why did you respond to my outreach?

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John

I was getting many recruiter calls at the time and I ignored most of them. Your message was really clear and hit all of my hot buttons:? 1) A company with unique technology.?? 2) A seat at the table – reporting direct to the CEO.? ???3) A move up from VP to President.? It checked all my boxes so I agreed to speak.

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Chuck

After you and I spoke, I referred you to the CEO in Israel.? What do you recall from that call?

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John

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It was a bit of an odd interview – we met via Teams.? The CEO was quite “aggressive” asking me about my experience, industry contacts, and roles I had managed etc. Similar to my experience with Italians, he interrupted me many times.?

This went on for about 45 min. Then things changed – and he became much less aggressive and very friendly and open.? He answered many of my questions very honestly which I really liked – I saw he was a “straight shooter” - he didn’t hide anything.?

He told me a bit about new products in the pipeline and their objectives in the US market.? I came off that call very interested.

?It was a bit of an odd interview

Chuck

What happened next?

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John

I had a series of Teams calls with numerous people including:?

·??????? Head of Global Sales

·??????? VP of Human Resources

·??????? The Chairman of the company

·??????? An external consultant.?

It was a bit exhausting but it all went well. So after checking references, we agreed to meet in Tel Aviv as they wanted me to come over and see the people, products and operation - and also present my ideas.

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Chuck

?What did they ask you to prepare for the visit?

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John

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They wanted a 30-45 minute formal presentation on the market they are in, my relationships in the sector and most important, my initial vision for growing the North American market.?

The CEO shared some confidential information with me (via an NDA) which allowed me to do my homework and bring real world information.? The presentation was attended by all the people I had met previously plus a few others and we engaged in some very intense discussions.

Shortly thereafter, I received an offer.

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Chuck

?How was the initial offer?

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John

To be honest, it was disappointing. We had discussed compensation packages before I went over there but the initial offer was much less than I was expecting.? So I sat down with the CEO and Chairman for some lengthy discussions and negotiations.? ?Your involvement – as a recruiter who understands both sides – was also very helpful at this critical stage.

They came back with a much more attractive framework which they needed to bring to the board for approval as it was more than they expected. ?

I don’t think they were playing games but their research on compensation levels for a role like this in the US was really off, which, by the way, also happened with the Italian company I worked with previously.?

The head of HR at the Israeli company came up with some numbers which were really unrealistic. I never heard where she found them.

Shortly after this, we signed and I came on board.

?I don’t think they were playing games but their research on compensation levels for a role like this in the US was really off

Chuck

?How were the first few months?

?John

Actually quite a bit more difficult than I expected.? The CEO – with whom I had formed good relationship – wanted to micro-manage every detail of the business.? I will give you 2 examples.?

Our US Company has direct sales people and also independent reps.? I wanted to replace 2 of the sales people and several rep agencies who weren’t performing. I updated the CEO and he told me not to do this – as he had long term relationships with these people.?

I also wanted to replace some of the service providers they had in place (accounting, logistics and external HR) as we were paying too much for too little. Again, he held me back.

I had a difficult discussion with the CEO – I told him that I am measured on financial results and I need to do it my way and decide on the team and service providers.? I convinced him and over time, he became less and less interested in micro-managing the US from Tel Aviv.?

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Chuck

Have you and your staff experienced cultural conflicts with the Israelis?

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John

Don’t get me started on that!? The answer is strong yes!? Not just for me but for the entire US team.? Here are a few examples:?

The Israelis are very direct in their communications, especially in emails but also in phone calls and Teams meetings.? Several of my employees wanted to quit after getting what they saw as “directives” from the people in Tel Aviv.?

In other cases, the Israelis made comments to some of our people here in the US who viewed them as offensive. I don’t think they meant any harm but it created problems.

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The Israelis are very direct in their communications, especially in emails but also in phone calls and Teams meetings.? Several of my employees wanted to quit after getting what they saw as “directives” from the people in Tel Aviv.?

Chuck

How did you resolve these issues?

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John

2 ways.? One, the CEO and I decided to limit the direct communications between the Israeli team and the US team to a small number of people. Everything goes through these people.?

Then, we had several sessions of cross-cultural training with the people who are involved in these communications. One session was held here in the US together with the Israelis.? The other session was held in Tel Aviv where I came over with these key people. In both sessions, we met with a cross cultural trainer.?

We are now all super- alert to cultural issues and we catch problems before they occur.? And to be honest, this group – the Israelis and the Americans who communicate with each other – have become a close knit team. A few of them even went on a European vacation together.

Chuck

To sum up, if an Israeli (or other non-American) CEO would ask you for your advice prior to starting the search for a US based executive, what would you tell them?

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John

?Here are few suggestion I would make:

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1.????? Do your homework before starting to speak to candidates – understand what you need, what you want and the cost.? A new office for an Israeli start-up may not need to recruit someone from the #1 company in the industry.? You may not even need a President.? Determine what's required currently before you start to look.

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2.????? Israelis feel they know American culture but sometimes it’s more challenging than they think. Involve one or more people in the recruitment process who understand the business culture in both countries.? Chuck - your role as the executive recruiter with experience in similar Israel/American searches was very valuable throughout the entire process. ?

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3.????? Decide how much autonomy you are willing to give.? People like me can’t operate successfully if we are micro-managed.? If the Israeli CEO wants to control everything it’s his right to do so, but then he should move to the US for a few years and do this job himself.

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4.????? Finally, move the recruitment process ahead quickly. I almost walked away a few times as everything was taking so long with so many people involved.? Strong candidates have other options and they won’t stick around for several months until you decide.? Screen carefully – but also quickly.

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Chuck

John - thanks for your comments which I’m sure will be helpful to any Israeli or other non-US manager seeking to recruit people in the US. Any final thoughts?

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John

?It’s my pleasure to help.? And I would just add, that overall the experience has been very positive and other US executives should consider similar opportunities when they come up.? I’m very pleased you reached out 4 years ago. It has been a life changing experience.

I would just add, that overall the experience has been very positive and other US executives should consider similar opportunities when they come up.?

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Chuck Klein is President of Amcon Recruitment Ltd., a boutique executive recruitment firm assisting non-US and US companies find exceptional employees in America. He can also be contacted for online workshops and in-house training.

Chuck has 20+ years’ experience in US Recruitment for non-American and American companies and is the author a large number of articles, newsletters and posts on US market entry topics.

He is the author of the book Marketing to America: How non-US companies can profit by selling in the USA (Prentice Hall / Financial Times) https://www.dhirubhai.net/in/amcon/ Tel: 773-741-3269

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