1. WelcomeReut Institute Annual Event February 2008 Shevat 5768

2. Vision Mission Strategy 2008-2010 Development Plan National Security Campaigns Testimonials 2007 Highlights ISRAEL15 Campaigns

3. Reut Institute Annual Assessment Shevat 5768, February 2008 3 Vision 21st Century Zionism Mission To Sustain Significant & Substantive Impact Strategy Be a Primary Address for Decision-Support Get Our Model Emulated Place Strategists in Key Positions

4. Reut Institute Annual Assessment Shevat 5768, February 2008 4 Unique Added Value Strategic Threats and Opportunities Pro-bono Real-Time Strategic Decision-Support Services Premier Strategy and Leadership Training Program

5. Reut Institute Annual Assessment Shevat 5768, February 2008 5 Our Model of Impact Community of Decision- Makers  Identify strategic surprises  Focused Research  Fundamental Change  ‘Exit’ when the gov’t enters

6. Reut Institute Annual Assessment Shevat 5768, February 2008 6 2008-2010 Development Plan Highlights  Operational Integrity  Min one additional team a year  Budgetary resilience  Institution building Inputs  Top analysts / decision support.  Leading Training Program in Israel.  Annual IL15 Conference.  Annual QOL Report.  Website as Primary Resource. Outputs  Significant contribution to IL15  Effective agent of change  Model Emulated  3-5 key placements Effects Leading Training Program in Israel Operational Integrity An additional team a yearBudgetary resilience Institution building Significant contribution to IL15 Effective agent of change Model Emulated 3-5 key placements Top analysts / decision support Annual IL15 Conference Annual QOL Report Website as Primary Resource

7. Reut Institute Annual Assessment Shevat 5768, February 2008 7 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support  Introducing ‘leapfrogging’  Upgrading National Econ Council  Comparative competitive mindset  Reframing poverty  Annapolis Process – Not risk free  Hamas Pyrrhic victory  Hamas through a corridor  Israel’s implosion/crisis in NSC Effects

8. Reut Institute Annual Assessment Shevat 5768, February 2008 8 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support  Team on strategy & structure  Consolidated training program  Overhauled impact team  Upgraded DS services Capacities

9. Reut Institute Annual Assessment Shevat 5768, February 2008 9 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support  +20% decision support  6 national security campaigns  IL15: Hausmann visit  IL15: 4 campaigns Outputs

10. Reut Institute Annual Assessment Shevat 5768, February 2008 10 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support  Staff: +6 analysts  +50% budget  Institution-building Inputs

11. Reut Institute Annual Assessment Shevat 5768, February 2008 11 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support  Staff: +6 analysts  +50% budget  Institution-building Inputs  +20% decision support  6 national security campaigns  IL15: Hausmann visit  IL15: 4 campaigns Outputs  Introducing ‘leapfrogging’  Upgrading National Econ Council  Comparative competitive mindset  Reframing poverty  Annapolis Process – Nt risk free  Hamas Pyrrhic victory  Hamas through a corridor  Israel’s implosion/crisis in NSC Effects  Team on strategy & structure  Consolidated training program  Overhauled impact team  Upgraded DS services Capacities

12. Reut Institute Annual Assessment Shevat 5768, February 2008 12 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support Effect: Becoming a primary address for decision-support Objective 1: Increase in decision support Objective 2: Enhanced decision support for IL15 community

13. Reut Institute Annual Assessment Shevat 5768, February 2008 13 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support Effect: From media to fundamental change Objective 1: Increased media profile Objective 2: Enhanced impact capacities for fundamental change integrated web policy (website / blogs) Web compromise on capacities in ‘traditional’ outlets Media integrating executive and legislature activities Lobby Business people Outreach with other non- governmental organizations Building Coalitions ongoing client feedback mechanism Gov relations

14. Reut Institute Annual Assessment Shevat 5768, February 2008 14 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support Effect: Further cultivating our human capital Objective 1: Enhanced training program Objective 2: Launching another decision support team $250k annual pledge for 3 years Schustermann & Chais Found.

15. Reut Institute Annual Assessment Shevat 5768, February 2008 15 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support Effect: Increased Budgetary Resilience Objective 1: Increasing FR by 50% to $1.4M Objective 2: Developing relationship with AFRI Objective 3: 35% of 08 pledged by 12/07 Objective 4: Outreach to more Israeli donors Gidi Grinstein, Ms. Raia Strauss, Professor Ricardo Hausmann at the ISRAEL15 Business Sector Event, January 2008

16. Reut Institute Annual Assessment Shevat 5768, February 2008 16 Highlights of 2007 Institution Building Financial Conduct Human Capital Impact & Media Decision Support Effect: Transforming into an institution Consolidate management & oversight Amended bylaws Enshrining vision, mission and values New Charter 3-year development plans Strategic plan Expanding board Advisory Board Board & New CEO Policy teams independence Op. Integrity Delegating authority from Gidi to a team Management An organization with the capacity and resilience to serve its mission effectively while transcending context. This capacity should be sustainable over time and independent of any individual that is part of its community.

17. Reut Institute Annual Assessment Shevat 5768, February 2008 17 Springboard Still Under Construction Institution Building Financial Conduct Human Capital Impact & Media Decision Support Expanding board; Advisory Board; New CEO Development by team and not CEO Upgrade team leaders Effective campaigns for fundamental change DS Package not fully designed and implemented RPN not operational as a DS tool

18. Decision Support Focus

19. Reut Institute Annual Assessment Shevat 5768, February 2008 19 Prof. Hausmann Leapfrog Workshops Professor Haussman, Ministry of Finance Director General Ariav and Gidi Grinstein. Public Sector ISRAEL15 Workshop A unique workshop marathon provided pro- bono to the GoI through the generosity of Ms. Raya Strauss, Reut’s prime Israeli donor. Gidi Grinstein, Ms. Raia Strauss, Professor Ricardo Hausmann at the ISRAEL15 Business Sector Event, January 2008 Within three days, Professor Hausmann held professional workshops to:  President  Bank of Israel Governor & staff  Knesset economics and finance committees  Minister of Welfare and senior staff  Public sector executives  Minister of Finance and senior staff  150 of business leaders.

20. Socio-Economic Decision Support Campaign Mindset Shift: From Growth to Leapfrogging

21. Growth Vs. Leapfrogging GNP Growth 3-5% 3-5 year cycle ~80 cases in 50 yrs Gradual upgrade Catching up with wealthy nations Min 4-6% Few: Israel, Japan, Germany Ireland, Singapore A-Cyclical growth, episodes of 15-20 years Strategic bets Definition Rate Length Frequent? Product Space No Imperative Vision? W - Consensus Each country her way Recipe? Mindset Diverging Reality Time series Comparative-Competitive Evaluation Clashes Collaboration Public-private Self-focused Expanding the pie Bus. Sec

22. National Security Decision Support Campaign Who wants a Palestinian State? The Inversion towards Palestinian Statehood

23. Inversion A trend reflecting the fundamental shifts regarding Palestinian statehood. In the past, the PL desired a state, even in provisional borders while IL objected. Nowadays, IL advocates the establishment of a PSBP meeting, Palestinian rejection Support for PSPB Rejection of 2 State Solution Ambiguity Rejection of PSPB Accepting a 2 State Solution 1988 1999 2004 2005 2008…

24. Oslo Process Support for PSPB Rejection of 2 State Solution Ambiguity Rejection of PSPB Accepting a 2 State Solution 1988 1999 2004 2005 2008… Algiers Declaration accepting the 2ss (181) and calls for PL state May 1999 Arafat threatens unilateral declaration of PSPB Sep 04: Reut identifies the trend; develops the ‘unilateral recognition’ alternative Feb 2005, Abu Mazen officially refuses the PSPB Roadmap = Deadlock Price rises, return decreases The logic of implosion Annapolis = Package deal New 1SS argument Roadmap: PSPB Intifadah Israel rejects a 2SS PM Olmert: “2SS or Israel might collapse” ‘Thank you, but No Thank You’ PM Sharon supports PSPB

25. Reut Institute Annual Assessment Shevat 5768, February 2008 25 Testimonials “(..) demonstrated professional and analytical ability (..) Your methodology helped us think strategically (..) and grasp the full picture(..)” Shai Avital, DG, EPA, February 4 2008 "Your complete dedication to the issue, your professionalism, and the close cooperation with the NEC team (..) are commendable." Manuel Trajtenberg, Director NEC, Nov. 19, 2007 “They are very influential and highly respected. Their help is not in the content but in the process. They don’t tell you what to think, they tell you how to think. Their alerts sometimes save the day." Ido Aharoni, Fmr. Advisor to Foreign Minister Livni "…gratitude (..) for your contribution in helping us institutionalize the NEC (..) and for your devotion. professionalism, & cooperation with our team (..)” Manuel Trajtenberg, NEC Chairman, Nov19, 2007

26. Permanent Adversity Exceptional Volatility Dire need for long term Substantive input Short, unstable tenures Political fragmentation Incentive for short term, populist, sectarian input Address for DS Model to be emulated Training Strategists

27. “Israel’s premier strategy policy group” Thomas Friedman, NYTimes, 03/30/07