Business Practices in Israel

The management style in Israel is generally collaborative. Hierarchies are defined but not always strongly enforced. Everybody is given the opportunity to express their opinion and contribute to the decision-making process. Solutions and results are more important than formalities and hierarchies.

Personal connections are of the utmost importance in Israel. Colleagues and business partners take time to get to know each other, socialise and spend time together outside the office. Meetings are often relationship-oriented, and Israelis often treat their business partners more like friends than clients.

Israelis are very keen negotiators, so bargaining is always necessary. Initial offers can often be unreasonable, as they are just a starting point for negotiations. Making some concessions is important. Many Israelis will take the lead in negotiations, but they should not be given full control.  It is recommended to provide the other party with a clearly defined agenda about the purpose of the negotiations and to explain the advantages of concluding the contract.

In general, Israelis are direct and state their opinions, so it is better to do the same: trust will be more easily granted  to people they feel are honest and direct, so using subtleties should be avoided at all times. Israelis speak loudly and quickly, which sometimes gives the impression that they are in a rush or frustrated. Business meetings can often be interrupted by phone calls or people entering the room.

For business meals, most restaurants in Israel are kosher, but it is always better to double-check the restaurant in case of very religious partners. Religious Israelis will not mix meats and dairy products at a meal, just as Muslims will not eat pork.