"I Wanted to Solve Problems Before They Materialized."

by Dov Gordon

"I have a habit," said Eitan Wertheimer who 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.

DOV GORDON helps senior executives make better, wiser decisions and quickly get things done.  He is sought after for his perspective and advice on formulating and implementing strategy, developing an innovation culture and cultivating superior team work.  Dov can be reached via his websites www.GordonGroupEC.com and www.IsraeliCEO.com or via email at dovgordon@gmail.com.

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READ: The High Cost of Solving Problem on our website.  This article explores the creative mindset more deeply and shows you how to lead your company to be more innovative and less reactive.
 

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Dov Gordon helps senior executives at small and mid-sized companies around the world to earn the respect and admiration of their marketplace.  Clients benefit from clarifying their strategies, sharpening their focus, better decision making, improved teamwork and growing into great leaders.

Management and Strategy Consulting.

Executive Coaching.

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Copyright 2009 © by Dov Gordon.  All rights reserved.