Tachles Series - Benzi Ronen shares insight, anecdotes, and expert hacks for Israeli entrepreneurs looking to grow their business in the US.
Find out how to:
Diversify your management team
Make sense of why Israeli startups don’t have many non-Israeli senior executives
Nu, get to the point:
On paper, we know it makes sense to recruit a diverse executive team. Different perspectives result in richer debate and help create an informed path forward. Diverse leadership attracts diverse employees, building an inclusive culture of awareness and learning.
So why, then, do most Israeli startups have executive teams primarily made up of other Israelis?
It’s certainly not for lack of trying. Israeli startups often invest significant resources in building diverse management teams; when that effort doesn’t come to fruition it can be incredibly frustrating. It’s not surprising that many Israeli entrepreneurs are hesitant to try again. In fact, a growing number of successful Israeli startups have abandoned setting up headquarters outside of the country, and have an entirely Israeli management team.
The homogeneity of Israeli tribalism has its benefits — founding teams meet in school or the army; they share a common language and religion; their values are aligned, and there’s an intuitive understanding of one another. That kind of natural, organic bond can have ripple effects as a company begins to grow, forming strong loyalty among employees.
At Farmigo, it took completely turning over my senior management team twice to finally find a group of talented and diverse leaders that worked well together. It was a resource-intensive process — searching for qualified candidates, managing the recruitment process, onboarding the candidates who signed, and successfully integrating them into the team.
That being said, if you’re planning on expanding your business in America — and building part of your executive team there — the benefits of diversity are undeniable.
Hacks by Guest Entrepreneur: Tomer Tagrin
Tomer Tagrin is the co-founder and CEO of Yotpo — an eCommerce marketing platform geared towards customer retention.
Look for Underdogs
Be careful hiring people coming from wildly successful companies. Pedigree aside, it’s hard to determine whether an executive was instrumental in the success of their company, or simply along for the ride. Instead, learn how to read resumes really, really well. Understand a candidate’s background, and get clear on what you’re looking for — someone who went to an Ivy League school or someone who changed their circumstances? An executive at the top of their game or a young manager with potential? Context is everything, and finding people you can guide into senior positions may be a longer game, but it’s often one with better results.
Find a Connection
Look for executives with international backgrounds. You may find yourself able to bond with immigrants over a shared experience of hardship — one Israelis are familiar with — creating a base for empathy and trust. Keep an eye out for executives who have already worked for Israeli startups; it makes for easier reference checks and a smoother transition overall.
Start Early, But Be Smart
If you’ve made the decision to diversify your executive team, do it quickly; the earlier you can help your team form habits of working with non-Israelis, the more welcoming the company culture will become. That being said, if a candidate looks too good to be true...they probably are. It’s a hot market, and the best candidates have their pick of opportunities; in spite of what your mom may tell you, your startup is probably not the best choice of everything out there. Identify your dealbreakers — and then be willing to accept any inconsequential flaws.
Leverage the Community
Ask your board members to interview executive hires; more perspectives and more accountability in the process are always good things. Seek out advisors with extensive networks who may be able to help source candidates, or ask your Israeli entrepreneur friends for introductions to the recruiters that helped them build out their own teams. And when you assess a candidate, also try to determine whether they have colleagues who would want to follow them to your company — it’s a good sign if people want to work with them again.
Zero to Sixty
Have a plan in place to help you identify a bad hire within the first 1 to 2 months; during that time, don't delegate their onboarding and management to someone else. You want to build a process where you’re able to gather as much information as possible, as quickly as possible, about whether they’re a fit for your company. Consider strategy, skillset, leadership, culture, and more. And above all, trust your gut — if you have a bad feeling, don’t wait too long to cut ties.
Good luck!