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"I Wanted to
Solve Problems Before They Materialized."
by Dov Gordon
Published: May 16th, 2006
“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.
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.
****
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 innovative and less reactive.
****
You can comment
on this and other CEO Thought-Provokers™ at our blog:
http://ceotp.blogspot.com/
Archives
of The CEO Thought-Provoker™ are here:
http://www.gordongroupec.com/CEOTP/CEO-Thought-Provoker-Archives.html
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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 2006 © by Dov Gordon. All rights reserved. |
