A book indicates the ties, including operational ones, between the artistic sense and the organisation of production

Good production is always somewhat similar to inventing. The best managers and entrepreneurs are those who know how to invent, who innovate therefore within the organisation of production, which was similar to any old production beforehand. Yet producing also has something artistic. Indeed, it is the merger of art and enterprise that makes up one of the latest conquests in the world of management and innovation. Not – and we need to say this straight away – only in terms of the Company’s Social Responsibility, which leads the same to make commitments towards enhancing the value of art in the social context within which it operates, but also in terms of using art to improve the organisation of production, what is commonly referred to as office work and factory work. A very far-off and imaginative goal, but examples of this approach already exist, yet their methodical analysis and correct interpretation are necessary.

“L’arte per il management” [Art for management] by Viola Giacometti and Sara Mazzocchi (both researchers who specialise in corporate storytelling applied to strategic consulting and organisational learning), is one of the first books to have been written to this end, because it explains how to use art to those in charge of corporate training and to those who are in search of innovative work methods.
The book is based on two considerations. On the one hand, it is obvious how art is something extremely powerful and magnificent, capable of opening up new perspectives, of connecting us emotionally with the world and of anticipating the future. On the other, it is still an almost unexplored path: relating art with businesses, when this relationship should be geared towards specific objectives and be functional to a strategy for improving the work organisation in a company. .

The book then explains how art – seen as a tool to activate thinking – can be useful when connected to narration to improve the organisation of production. In order to define a work method in this sense, Giacometti and Mazzocchi first draw out the basic concept of the relationship between art and enterprise, then the value of narration as a tool to convey knowledge, then a five-step path genuinely to apply art to companies – triggering participated activation, immersion and (strategic) loss of control, transformation (movement), emergence -, and then a series of practical cases to conclude.

The two authors write as follows at the beginning of their work: “What makes us really stand out is our imaginative and creative ability, which we exercise through the form of narration. So why do we continue to think that art, that emotions should be relegated to our time outside work? to non-adults? to the non-productive?”.

L’arte per il management. Un nuovo modello d’incontro basato sullo storytelling [Art for management. A new approach model based on storytelling]

Viola Giacometti, Sara Mazzocchi

Franco Angeli, 2016

To try to face the crisis due to “reduced confidence in capitalism” it is worth focusing on the “socket head screw paradise”. This is how one could sum up – combining the results of research conducted by Harvard University with a place made famous by a successful film by Italian trio of comic actors Aldo, Giovanni e Giacomo (“Tre uomini e una gamba”) – a reflection on some recent meetings which focused on the topics of development, industry and the new balances of an economy in pursuit of sustainability.

Let’s start with reduced confidence. The Institute of Politics di Harvard has analysed the opinions of a broad sample of young Americans aged between 19 and 25 and ascertained that the majority, 51% to be exact, have a negative opinion of capitalism. Only 42% have a positive opinion. This is a surprising piece of information, which has had the American media debating over the last few weeks, echoes of which have already reached Italy (Mauro Magatti mentioned it in the 14^th May edition of the Corriere della Sera). This is because it gives substance, backed by an opinion-poll scientific research, to the questions and concerns which have for some time animated public debate in more advanced economic countries: the growing intollerability of imbalances in economic paths, the insufficiencies of traditional economic market cultures, the reinforcement of very critical views of traditional finance and business. The lack of confidence shown by young Americans is severe. Indeed, it is there, in the country at the heart of capitalism, of the Stock Exchange, of the financial markets, of the “Wall Street lions” and aggressively ambitious corporate bankers, that this negative attitude is developing. The trend is on the rise. It has nestled in economic literature, but also in a number of social and political environments (as also demonstrated by the polls for the most radical democratic candidate in the race for the White House, Bernie Sanders): less space for financial speculation, more attention to the environment, people, social justice.

Obviously, the topic is also being discussed in Italy. As are the topics of the quality of economic development, of environmental and social sustainability, of corporate responsibilities, which are all finding growing attention. “Who owns the company?” in other words “the role of the independent advisor in a business with multiple stakeholders”, in more responsible corporate governance processes, was the topic of a meeting by NedCommunity (the association of independent non-executive administrators) at Bocconi University, with a strong echo of Adriano Olivetti’s lesson on corporate culture and ethics (values and not just the “creation of value” for stakeholders and the grown, albeit essential, of profit). “Corporate welfare in Italy after WWII” was at the centre of the debate at a conference promoted by the Aem Foundation, with the participation of historians, economists and those in charge of corporate foundations (with a keen eye on social sustainability of entrepreneurial activities). Industry, markets, innovation and new economic balances were discussed at the Aspen Seminar for Leaders, a few days ago, in Venice, with a special focus, during the concluding debate, on “creative Italy“ and “a good factory”. Good because it is well-designed, flooded with light, welcoming, safe and secure, attentive to saving energy which is in any case renewable, productive. Therefore also competitive, capable of keeping up with the most demanding international competition.

Some case studies include: the Pirelli Industrial Pole in Settimo Torinese (the “factory in the cherry garden”) “wired” with the research and service laboratories designed by Renzo Piano, the Zambon pharmaceutical plants in Vicenza and Bresso (the “factory among olive groves”) designed by Michele De Lucchi, the ABB “smart lab” in Dalmine and the workplaces in Sesto San Giovanni, the Maserati plant in Grugliasco and the production systems designed by Siemens, the Dallara factory in Varano de’ Melegari, on the hills surrounding Parma. These are all excellent paradigms of a “good company” where the quality of the industrial architecture ties in well with the hi tech and medium tech product and process innovations. Italian excellence in “knowing, knowing how and letting others know”, in the effective words of Andrea Pontremoli, who is the managing director of Dallara (racing cars). Echoes of the reflections and activities of Adriano Olivetti also reach this far, along with topics of “industrial humanism”, the prospects of the “civilisation of machines”.

A good factory, one that is productive and sustainable is therefore the indication one gets out of this. A reality which should be disseminated better to the Italian public opinion, while reinforcing the bonds between factories and schools. But also a series of indications about the prospects. One can’t produce “good things” that are “top of the range” unless these are in a “good environment”. And the quality of products and of the production sites can be effective leverage to disseminate good business culture and thus try to counter the crisis due to reduced confidence which has affected companies, the market economy, and “capitalism”.

Italy is a country of good entrepreneurs. Holding production and quality records in key development sectors, such as mechanics. “The socket head screw  paradise”, as it was jokingly referred to at the debate in Aspen, recalling the irony of Aldo, Giovanni and Giacomo and seriously thinking of the extraordinary capacity, the very best in the world, to produce for instance, special screws, the socket head screw to be exact (mechanical workshop established by Egidio Brugola in 1926, in the heart of Brianza, a company which is still run by the same family today).

“There, do you what I’ve decided to call my new department at Dallara? The very same ‘The socket head screw paradise’”, explains Pontremoli, tracking innovative and sustainable industrial scenarios of a “good factory”. Hence, capitalism saved by the socket head screw, right?

A degree dissertation presented at Venice’s Cà Foscari university makes a detailed analysis of the relationship between production culture and culture in general. 

Good business also creates culture. And, if necessary, it sustains it. This practice has evolved over time, echoing the evolving conception of business and business people. The notion of production organisations which, to their credit, have become known for their patronage, or who have, at least, played a strong and active role in the cultural life of the system in which they operate. Such behaviour has, by now, become an accepted and widespread practice although not yet fully understood in all its complexities.

In order to make progress in this direction, a dissertation by Erica Francesconi at Venice’s Cà Foscari university -“The relationship between cultural innovation and businesses located in north-east Italy” – may make useful reading. It discusses precisely this relationship between cultural events and the efforts of the businesses studied in a geographical area that is key to Italian industry.  More specifically, the paper looks at links between events, industries and the regional local authority (Veneto).

It explains: “The relationship between private organisations and the cultural sector takes shape through different forms of collaboration, although the most popular one,  nowadays, is patronage: a form of private financing that affords the business patron greater visibility and allows the beneficiaries to dispose of funds with which to run artistic and cultural projects, thereby fulfilling the interests of both parties.”

It is a sharing of interests which are only outwardly different – those of businesses and culture. The relationship between an organisation and a cultural event is therefore approached from a theoretical perspective first, then from a practical one. Numerous cases and forms of collaboration are considered – from the more formal examples of patronage to crowdfunding.  Associations such as C4 (Centro Cultura e Contemporaneo di Caldogno), Atipografia and Illustri have interacted with businesses like Unicredit, Arclinea, Dainese, Deroma, il Gruppo Maltauro, Telwin, Trend Group and also Gruppo Mastrotto, Girolibero and Zeppelin, Burgo Group, Selle Royal and many more.  The essential nature of these collaborations is explored, along with the results, the difficulties encountered and their evolution over time.

The story that emerges is one of wise industries who charm with their desire to generate more than just material wealth.

Enrica Francesconi’s thesis is an excellent way to explore the alchemy that exists in the relationship between business and culture, between those who, in economic parlance, should only be thinking of their bottom line, and others who concern themselves with more than just posting a profit.

The relationship between cultural innovation and businesses in the north-east of Italy.

Erica Francesconi

Master Degree in Economics and Management of the Arts and Cultural Activities, Cà Foscari University, Venice, 2015

Reshoring – the trend whereby countries with a long-standing manufacturing tradition bring industrial activities back home. The practice first emerged in the USA under Obama and can also be seen in the UK.  Entire industrial sectors were dismantled in Great Britain in the 80s and 90s (starting with the automotive industry) as the focus switched almost entirely to finance and hi tech services.  The phenomenon has also been seen recently among Italian businesses. We’ve covered the subject previously in our business culture blog, but new insights have recently reached us.  The European Research Council (ERC)  recently published a study – in collaboration with Unindustria, the industrial association representing businesses in Roma and Lazio – looking at “How to Attract Development”.

It documents 101 cases of reshoring (data from June 2015), 80% of which were located in northern Italy (primarily the northwest). All were pioneering, competitive organisations, working in key manufacturing sectors: garment industry, electrical equipment, leather (high-calibre tanning plants are resettling in the Arzignano district, now seen as a case study), industrial machinery, and also furniture, chemicals and instruments of measurement and control.

On closer inspection, reshoring is more common in areas in which Italian manufacturing is stronger and more active, i.e. the sectors which generate the majority of Italy’s exports (mechanical engineering first and foremost, followed by clothing, furniture, food and farming and pharmaceuticals). It makes sense: manufacturing is brought back to Italy in areas with skills, experience and a “looks good-made well” business culture, namely those sectors in which the international competitiveness card is played very judiciously, capitalizing on factors (human capital, social capital, the experience of geographical areas with a long-standing and solid tradition of industrialization, a readiness to adapt and embrace process innovation)  which bind tradition to innovation, quality and the intelligent use of hi-tech and medium-tech manufacturing expertise in original ways. All of this takes place in the Industry 4.0 era of digital manufacturing in what are known as “neo-factories”.

It’s a complex thing, reshoring. Definitely to be encouraged. It should be seen as part of Italy’s attempt to make enterprise the cornerstone of the country’s growth. Underpinning this attempt is the desire to attract international investment (which has been rising in recent years, albeit not enough), promote new domestic investment, acquisitions and expand the international reach of Italian businesses. Oh, and reshoring  of course. All converge on the fundamental belief in the value of Italian industry. It could be described as manufacturing activism capable of rising to industrial, European and global challenges.

To handle such a challenge, there are some necessary building blocks. A “light”, transparent and efficient system of government (criminality, widespread corruption and unfair competition by businesses with mafia links hinder investment). A timely and effective justice system.  A streamlined organisation that is not overly complicated or cost-intensive. Superior infrastructure, both tangible and intangible (starting with broadband). A focus on high-quality research and training. In other words, it is important to build an environment that nurtures business, market culture and competition.

The reforms introduced by the Renzi administration, and by some regional executives (not in the south of the country, unfortunately) take steps in this direction. The aim is to do more and do it better.

Milan, a competitive, inclusive smart city (Aldo Bonomi describes it well in “IlSole24Ore” , 8 May), working in a tight-knit, metropolitan relationship with Turin and Bologna,  may serve as the benchmark and example of how to link manufacturing, services, finance, training and research, as well as a social responsibility as a means of furthering sustainable development.  According to Assolombarda, Milan’s position as a steam city  (acronym for science, technology, education, arts and manufacturing) could be the perfect  paradigm to attract multinational organisations, encourage start-ups, and facilitate the kind of reshoring we have been discussing. A virtuous cycle for the Italian economy, driven by sustainable development.

More than one hundred ways of talking about culture, collected together in a brand-new book.

To be an entrepreneur or manager also means to well-rounded men and women; conscious of one’s place as a citizen of an evolving world, both local and universal, and aware of one’s role in it as well as the consequences of one’s behaviour. This is also how business culture is shaped, in organisations who see more than a bottom line as their raison d’être. For this reason, it is both important and useful to read and keep a copy on hand of “La Cultura”, a  newly published book collating more than one hundred testimonials originally presented in a series of the same name, published since 1959.

Clearly, the book opens with an explanation of the general concept of culture, as originally covered in the series when it first published almost sixty years ago: “Contemporary culture is a difficult balance in which thought and life, art and criticism, the individual and general, come in and out of contact, feeding off each other. It is also made clear that culture, “does not derive from abstract principles nor from the passive acceptance of public affairs.” It is full of content which, on closer inspection, is useful not only to mindful citizens, but also to forward-thinking managers: be aware of the world around you, don’t act out of habit but in pursuit of what’s true and what’s new.

The book therefore presents a series of essays looking at the culture of modern man from all angles, written by a group of singular authors, including, to name but a random few:  Ginsberg, Dickinson, Proust, Lee Masters, Steinbeck and also Hitchcock, Kerouac, Monicelli, Faulkner, Lennon, Pollini, Mead, Stajano, San Francesco, il Dalai Lama, Deaglio, Magri, Salinger, Cederna, Stuart Mill, Keynes, as well as Sartre, Gropius, Sereni, Touraine, Mila, Bobbio and many more. Each one tackles a theme, a detail, a vision of what culture may be, encompassing almost every field that we would consider “knowledge”. Some of them (history, communication, economy, music, future and poetry) are the subject of a series of presentations at the Milan Triennale, taking place in this period.

There is also a nod to production and the economy, in the strictest senses of the concepts. In regard to what constitutes good business and what makes a good business person, passages like the one by John Stuart Mill stand out, like flashes of light in a night sky: “He who does anything because it is the custom, makes no choice. He gains no practice either in discerning or in desiring what is best.” (…) He who lets the world, or his own portion of it, choose his plan of life for him, has no need of any other faculty than the ape-like one of imitation.”. A few pages further down, John Maynard Keynes adds: “We have transformed the philosophy of our economic life, the notion of what is “reasonable” and what is “acceptable”: the transformation has been imperceptible and it has taken place while our techniques and our subsidiary principles have remained unaltered. Therein lies the source of our problems and our tears.”

“La Cultura” is what we called it in the opening: a book to be read and to keep on your desk, not as a decoration but as a life raft.”

La Cultura

Multiple authors.

il Saggiatore, 2016

A recent book explains how old-style organizations are changing to new production methods.

The modern business has many faces: it is founded and exists to make a profit, but the world also pushes it towards what now is called corporate social responsibility. In turn, this gives rise to manufacturing organizations that have other agendas apart from positive balance sheet results. In all this, production culture is changing. There are new forms of enterprise that, in certain respects, can be seen as the new horizon of the modern industrial and economic system.

Understanding what is happening and what is developing is crucial. Reading Imprese ibride. Modelli d’innovazione sociale per rigenerare valori [Hybrid Companies. Social Innovation Models for Regenerating Values] by Paolo Venturi and Flaviano Zandonai, is useful for understanding exactly what is happening.

The reasoning of the two authors starts by looking at how profit and non-profit businesses, the public and private sphere, remunerated and volunteer work all merge and mingle frequently these days. The “hybrid” sphere is emerging, with the establishment of many new ways of generating value for capital undertakings, non-profit organizations, and public administrations.

Nonetheless, movements in the production system are not one way. Venturi and Zandonai explain how the traditional type of business is changing how it organizes production of goods and services, increasingly embracing economic, social and environmental factors in their model. At the same time, non-profit subjects tend to increase the percentage of goods and services traded on the market with more emphasis on the production component. Lastly, the state assumes the role of promoter and player in processes that see the active participation of citizens, making available the heritage of unused or degraded infrastructure.

As already mentioned above, there is now “a new way of being and acting to create shared value, developing innovative solutions for unmet needs, making spaces for social innovation that have the person at their centre”.

Above all, the book explores the no-profit side of enterprise, both from the business perspective and for the aspects of capacity for cooperation and generation of networks among diverse production structures.

The book does not always use easy language but it is worth reading.

Imprese ibride. Modelli d’innovazione sociale per rigenerare valori

Paolo Venturi, Flaviano Zandonai

Egea, 2016

USA research explores the links that tie school, work culture and production.

Business culture is also created in school. Nor could it be otherwise, since business sense, awareness of sacrifice, seeking out what is new and also what is a risk, are the only ways for the young to learn properly. Stimulating school and training environments and satisfactory teachers do the rest. That this is then difficult to achieve is, clearly, another kettle of fish.

So, on the subject of school and business sense, Equity in American Education: the Intersection of Race, Class, and Education is an interesting read. The author, Pamela J. Meanes, is a partner at Thompson Coburn, LLP, President of the National Bar Association 2014–15, faculty at the University of Iowa, Clark Atlanta University, and Monmouth College.

Meanes uses an original and interesting approach to teaching and business sense. Indeed, the author explores the connections between the education offered by the USA’s school and social system, the race and class of the population, starting from crime reports and also observing schools for various age groups, from infancy onwards.

The reasoning starts with the idea that education creates new economic opportunities, then moves on to exploring education and school organization, concluding with the issue of economic resources available. Meanes’s idea – as mentioned above – was that the importance of education is manifested in the ability to provide opportunities for students also with regard to economic initiative. The level of education achieved, however, also depends on the availability of adequate financial resources. Alongside all this, Meanes focuses on the value of disciplines as an educational element in training systems, then addressing extreme cases of indiscipline in schools.

Pamela Meanes closes her work quoting Martin Luther King Jr – “The function of education is to teach one to think intensively and to think critically (. . .). Intelligence plus character, that is the goal of true education” – and she adds “We all know that education is the key, and that knowledge is the root of power, economic or otherwise”.

It is no accident that good schools and good enterprise can have the same conceptual roots: work, knowledge, initiative. Pamela Meanes’s study represents a useful tool for understanding how teaching culture can be combined with business culture.

Equity in American Education: the Intersection of Race, Class, and Education

Pamela J. Meanes

University of Richmond Law Review, 2016

“In a very dynamic labour market, Latin is the quintessential discipline for demonstrating powers of reasoning and logic.” Er, Latin? The “dead language”, one that many hope will disappear from school timetables, to be replaced by more practical, reasonable English? Singing the praises of Latin is not a high school teacher, but a businessman, Giuseppe Bruno, general manager of Info Jobs, a specialized job search portal popular with companies and young jobseekers (La Repubblica, 28 April). His positive view is shared by linguist, Guido Milanese, a professor at the Università Cattolica: “Knowing Latin is a plus in a good professional résumé. Businesses, particularly abroad, take this into consideration.”

Manager and linguist find themselves on the same hymn sheet regarding ten high schools in Milan and other Lombard cities that in late April hosted tests for certifying “knowledge of Latin”. There were 750 young participants and four test levels, organized by CUSL, the university association for studies. A success and to be repeated.

For some time now, precisely in some of the top universities in the US and the UK, Latin has been getting a new lease of life. And we’re seeing a revival of research and teaching. It may be worth giving this some thought here in Italy too, where some hasty planning suggested forsaking the classic pillars of education and focusing on English, computer science, and business. And instead of trying to overcome a deep-rooted aversion to scientific subjects, rather than healing the breach, it was decided to push classical disciplines out into the cold. One mistake after another that has to be sorted out.

“The Beauty of Latin”, headlined Il Sole 24 Ore, on 1 May, in its Sunday culture supplement, announcing that the “Latin in three episodes” articles by Oxford professor Nicola Gardini, was to be published by Garzanti as Viva il latino. Storia e bellezza d’una lingua inutile [Long Live Latin. History and Beauty of a Useless Language].The work’s identification of “beauty” certainly goes beyond interesting reflections on the usefulness of Latin, calling it “the very face of freedom.”

Latin – the language of literati and philosophers, but also of scientists around the world, even Descartes and Newton. The language of wisdom. Of logic. And of communication among writers and scientists, who found it to be an essential meeting ground, beyond their mother tongues. A language that gave us much scientific vocabulary in the language that is now dominant, English. So, a language to be rediscovered, reassessed, and studied in an innovative way.

Once again, we might speak of “polytechnic culture”, humanist knowledge, and scientific expertise. Summing up what, over time, has been enriched by international and European values, open to a very original appraisal: Latin, precisely as a language, proved it was permeable to other languages, other cultural experiences to which it gave a name, providing sturdy evidence that a language is a tool in continuous evolution.

Moreover, Latin is the clear identity root opened by Italians, whose weight and value we should be claiming precisely before this international audience attentive – as we said – to Latin. When speaking among Italians we could even stop distorting into horrific English true Latin words like “minus”, “plus”, “senior”, “alumni”, and countless other expressions adopted by schematic management jargon.

Words mean something. They reveal a style (from “stilus”, the sharp stick used to write on wax tablets). And civilization (from “civis”). They must be tended and grown into culture. Economic too, of course.

A key word in economics, “competition”, is another deriving from Latin. And going to its root, as we have repeatedly pointed out in these blogs, its social and economic significance can be recovered: “cum” and “petere” go together towards a shared goal. In a market where individual interests and rules, enterprising social players and sense of community all work together. Market from Latin “mercari”, to trade, and “mercem”, something that is a part, from the Greek “meros” but also something that is worthy of a price, from “merere”, to deserve. This is the root of the corresponding English and French words. Aren’t “market” and “merit” essential terms in any good corporate culture?

Three short words that sum up the economic trends of the past thirty years and set out the strategies for the future. 

Businesses have to keep moving in a world which is constantly evolving, changing and mutating, often without warning. The same conditions also apply to manufacturing organisations which are said, apparently, to have narrow horizons. “Dynamics of global competition” by Luca Ceccato (dissertation for degree course in International Economics at the “Marco Fanno” Faculty of Economic and Organisational Sciences, University of Padova) is an excellent handbook for business people and managers, a kind of mini almanac to help them navigate their way through change.

The book itself examines how the international economy has evolved in recent years, framing its analysis around the work of the McKinsey Global Institute. Ceccato begins by stating his premise that, in the last thirty years, “the dynamics have changed considerably, primarily on account of technological development and the expansion of international trade. This has made market competition increasingly fierce (also generating turbulence) and created growing downward pressure on marginal costs. He focuses particularly on the “role of technology”, seeing it as an “enormous and unavoidable part of being competitive”.

From this starting point, the book looks first at the basics of macroeconomics then at the business side. It closes with a chapter on forecasts for 2025, from a quantitative then qualitative perspective, in which the core concept seems to be “speed”.

“A purely defensive strategy,” Ceccato writes, “cannot protect a business from an increasingly global and more dynamic context. A healthy dose of optimism, a clear vision and constant speed can bring promising results, even in an increasingly crowded battlefield. This leads into the strategies to be implemented, based on the ability to understand and control change, to be prepared for “technological subversion”, to find the right investors, to become “agile enough to cope with volatility”, to build “proprietary intellectual assets”, to be always scouting for new talent, prepared to deal with increasing pressure on the labour market, to support the creation of surpluses for consumption and diversification of enterprise.

“Dynamics of Global Competition” is a good read, which is made easier by the diagrams and figures provided to help readers quickly grasp the key concepts.

Dynamics of global competition. Dynamics of global competition

Luca  Ceccato

University of Padova Marco Fanno Department of Economic and Organisational Sciences  International Economics Degree Course, 2016