“I Wanted to Solve the Problems Before They Materialized.”
“I have a habit,” said Eitan Wertheimer who last week sold 80% of his company, Iscar, to Warren Buffet for $4 billion. “I want to solve problems well in advance. That is how we started, years ago, the most important process of shifting the management from the family to professional managers. That is how we changed from being a niche player into a player of whole product lines, and that is how we risked investments in the Far East, in Japan and Korea, at times when nobody was even looking at them."
Reading the articles and interviews about this historic event for Israel and Israeli business (it was the largest ever deal in Israel and Buffet’s largest overseas venture ever) I was struck repeatedly by the discipline, character and foresight the Wertheim family displayed.
When explaining why they decided to sell the controlling interest in Iscar, Eitan said: "We reached the point of a crucial strategic decision. …We wanted to reach the next stage of the game, to be on the truly global turf. …So I had to be connected with somebody big. …In four or five years we'd have reached the barrier and I wanted to solve the problems before they materialized."
Solving problems before they materialize demands clear vision, focus and discipline. Stef Wertheimer, Eitan’s father and founder of Iscar said on a news program that he views business as a form or art. “Building a company is like creating a work of art; imagining what we could be and then going out to make it real.” (Paraphrasing from memory.)
"I could have made more money, but I wanted a solution that would be appropriate to Iscar's character over a longer period," explained Eitan Wertheimer, explaining why he had turned down an offer that valued Iscar at $8 billion rather than the $5 billion valuation he got from Buffet.
Dov Gordon’s CEO Thought-Provoker™ Questions:
i. Think about your average week. Is there an appropriate balance between the time, energy and resources you put into solving near-term problems versus anticipating what will make your company great in the future?
ii. Do you ever find yourself saying things like “I have no choice but to be directly involved in all these areas of the business because…” Fill in your favorite excuse.
If you are too involved in the running of various units, this is symptomatic of deeper problems – problems which slow your growth as surely as driving with your emergency break on slows your car. A conversation with an outsider you respect is a good way to get perspective.
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READ: “The High Cost of Solving Problems” on our website. This article explores the creative mindset more deeply and shows you how to lead your company to be more ‘artistic’ and innovative and less reactive.
Also, we can help you move from short-term firefighting to where you easily identify where your future problems and opportunities will sprout. You and your team will quickly move beyond simply ‘managing a business’ to experience the thrill of ‘creating a work of art.’ Contact us to learn more.
Reading the articles and interviews about this historic event for Israel and Israeli business (it was the largest ever deal in Israel and Buffet’s largest overseas venture ever) I was struck repeatedly by the discipline, character and foresight the Wertheim family displayed.
When explaining why they decided to sell the controlling interest in Iscar, Eitan said: "We reached the point of a crucial strategic decision. …We wanted to reach the next stage of the game, to be on the truly global turf. …So I had to be connected with somebody big. …In four or five years we'd have reached the barrier and I wanted to solve the problems before they materialized."
Solving problems before they materialize demands clear vision, focus and discipline. Stef Wertheimer, Eitan’s father and founder of Iscar said on a news program that he views business as a form or art. “Building a company is like creating a work of art; imagining what we could be and then going out to make it real.” (Paraphrasing from memory.)
"I could have made more money, but I wanted a solution that would be appropriate to Iscar's character over a longer period," explained Eitan Wertheimer, explaining why he had turned down an offer that valued Iscar at $8 billion rather than the $5 billion valuation he got from Buffet.
Dov Gordon’s CEO Thought-Provoker™ Questions:
i. Think about your average week. Is there an appropriate balance between the time, energy and resources you put into solving near-term problems versus anticipating what will make your company great in the future?
ii. Do you ever find yourself saying things like “I have no choice but to be directly involved in all these areas of the business because…” Fill in your favorite excuse.
If you are too involved in the running of various units, this is symptomatic of deeper problems – problems which slow your growth as surely as driving with your emergency break on slows your car. A conversation with an outsider you respect is a good way to get perspective.
****
READ: “The High Cost of Solving Problems” on our website. This article explores the creative mindset more deeply and shows you how to lead your company to be more ‘artistic’ and innovative and less reactive.
Also, we can help you move from short-term firefighting to where you easily identify where your future problems and opportunities will sprout. You and your team will quickly move beyond simply ‘managing a business’ to experience the thrill of ‘creating a work of art.’ Contact us to learn more.
posted by Dov Gordon at 1:47 AM
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