“Italy is like a square wheel that doesn’t turn, and which moves forwards with difficulty”, states Censis – once again a skilful creator of evocative images – in its annual report, as presented on Friday 4 December. Torn in two by the pandemic, between public employees with their safe jobs and salaries and employees of private companies that find themselves in serious economic difficulty, with their activities at a standstill, facing lay-offs, creeping redundancies and the disappearance of 5 million transient workers. An Italy that is in any case full of fear and uncertainty, facing a stark future, with confidence in tatters, and savings (for those who can still afford them) that are growing dramatically because – faced with the insecurity of tomorrow – people are neither consuming or investing. An Italy cajoled and gratified in equal measure by those in charge (but also by those in opposition) by means of the bonus economy (a subsidy here, a bit of aid there, an early pension, a “citizens’ income” that encourages people not to work, a promise of support, a postponement of taxes – all ending in debt) but so far, marginally (and poorly) involved in serious investment projects for the recovery and relaunch of the country.

A “country without”, to borrow the very apt title of an essay by Alberto Arbasino from 1980, just forty years ago. A country that often survives on scams, deceptions, illusions and accordingly, searing disappointments, which then mutate into anger and resentment. A country disheartened by “Le cose che non ci diciamo (fino in fondo)” (The things we don’t tell each other (in full)), as the title of Ferruccio de Bortoli‘s latest book for Garzanti goes – a substantial, passionate and well-documented catalogue of the games revolving around half-truths and endless reticence that bring down public discourse in Italy. A severe, cutting book, full of data, facts and reasoned points of view, as is characteristic of good journalism (now somewhat rare, unfortunately). A book to be read, highlighted, mulled over.

And yet, in spite of everything, we are a better country than the representations of a rash, hasty nation suggest. Because, for all those public employees who have taken advantage of smart working to work even less, and with less supervision, there are also the tens of thousands of doctors and health workers who have demonstrated professionalism, responsibility and dedication, along with the police and carabinieri who have been on the front line in order to maintain public order, the public service workers who have kept trains, buses and trams running, not to mention the teachers and professors who have continued to teach – regardless of the lack of “desks with wheels” (a whim discussed by leaders with no sense of reality) – focusing instead on the content and methods of their lessons, in these challenging times of distance learning and major inconvenience for students (tens of thousands of whom do not have an internet connection or computer in order to be able to take part in online lessons).

In short, Italy is wounded but still on its feet, not least because, despite everything, companies – by ensuring their employees are safe – have continued to work, produce and export, generating the wealth on which tax revenues, collective well-being, employment and future possibilities depend: the real economy versus the economy of subsidies that is so appealing to too many politicians seeking approval and support.

To put it briefly: in the midst of such painful and difficult times, Italy has demonstrated that it has a strong social capital and a widespread sense of responsibility, as well as a community spirit that could serve as the foundation for a new beginning. But alongside these noble attributes are selfishness, corporate forces and a lack of responsibility – an unstable and dangerous blend.

As such, we must know how to build ourselves an exit route. How? One suggestion comes from the “Address to the City” given by the Archbishop of Milan, Mario Delpini, as delivered every year on the occasion of the feast of St Ambrose: adopting a “defeatist attitude is unjustified” and in its place, we must insist on “trust” and “hope”; as such,“we must choose between being victims of fear, or building a community”. In short, “we praise those who remain in their roles in healthcare, in shops, in schools…” because “thanks to them, our city continues to function, even in the depths of a pandemic.” Taking on the problems and pains of others, and their “fragilities”. Caring for the weakest. And constructing a new sense of participation and responsibility. Delpini insists: “There are no shortcuts. The easy choices presented by populism and decision-making authoritarianism and the seduction of charismatic personalities do not respect the dignity of the people. Indeed, they often lead to disaster.” Realism, rather, is what we need. Or industrious pragmatism. And dedication, in order to “give a face to Ambrosian humanism”. A powerful speech, of truth and civilisation.

Let’s take another look at de Bortoli’s book, then, in order to gain a clearer understanding. We don’t tell each other, for example, that “we are living beyond our means”, investing little, living off the wealth we have accumulated in the past and, above all, leading to the increase in public debt – that is, passing on the cost of our current prosperity to our children and grandchildren. The Covid-19 pandemic and the recession have certainly worsened the overall picture, increasing the spread of “new poverty”. But, insists de Bortoli, we prefer to delude ourselves with regard to the generosity represented by subsidies (the so-called “quota 100” for pensions, the “citizens’ income”, and an infinite number of tax breaks), while disregarding the need to increase productivity, the real work that needs to be done with the dedication of businesses and with investment in innovation and training, as suggested by the EU Recovery Plan .

And here we come to a fundamental point that de Bortoli quite rightly cares about deeply: the importance of schools. And so we continue to behave irresponsibly, condemning new generations to grow up ignorant, in debt and unable to deal with the new demands of the sustainable and digital economy and society.

Nor do we tell each other that there are too many people evading tax, shifting the burden of taxation onto a small number of law-abiding individuals and businesses. Or that returning to the idea of an “entrepreneurial state” is a mistake, after the disasters of the past. And that competition is an indispensable component of balanced growth, even if many are trying to limit it or nullify this in order to cultivate positions of power and generate income beyond their own abilities – and merits.

The last chapter is dedicated to Luigi Einaudi’s responsible frugality, recalling the moment he offered “half an apple” to his guest after a simple lunch, and to the concerns of parents in the 1950s and 1960s as they sought to work, save and invest for a better future for their children. “Living,” comments de Bortoli, “has never been easy. And nor will it be in the future. Welfare is not a right. Sometimes we act as if it were. Citizens’ welfare does not exist, unfortunately. Today, sacrifices are even more necessary than ever. But nobody talks about it. We cannot expect anything from the state if we do not support it, through fair taxes and a greater sense of civic duty.” This is precisely what we should be saying to each other, clearly and insistently: we need a sense of civic duty, of community, of responsibility. A large proportion of Italy embodies these social qualities well. And it deserves attention and respect.

The story of “Chicco Cotto”, from initial idea to success story, without overlooking the culture of producing “well”.

Good business at any cost. With the drive and willpower of any true entrepreneur worth his or her salt. Even when they’re laughing behind your back. Even when you’re told: “You will fail”. Well-rounded companies that are concerned about closing the books with a healthy result, and making profit, not just making money. Against the backdrop of the enormous complexity of today’s economy (and not only as a result of Covid-19), these companies are referred to as social enterprises, and should be studied carefully, beginning with the idea behind them: namely, the desire not to be “goody-goody” companies, but rather to be organisations that are capable of doing good without forgetting the necessity of making ends meet. Their stories are useful to us all. And this is precisely why getting to know the story of ‘Chicco Cotto’, a company founded in Turin in the heart of the Cottolengo citadel, could prove helpful to many entrepreneurs and managers.

The history of “Chicco Cotto” is told by a priest, Andrea Bonsignori (who had the initial idea), and an economic journalist, Marco Ferrando. Their book is entitled “Il coraggio di essere uguali. L’impresa diversamente automatica di Chicco Cotto” (The courage to be the same. Chicco Cotto, a differently-automatic company). At the heart of everything is a simple concept, but one that very few manage to put into practice: “Dignity comes before charity”.  Bonsignori gathered together a group of leading professionals and created “Chicco Cotto”, a vending company that became known for the quality of its products and the “ordinary extraordinariness” of its organisational model. At the heart of the enterprise are young people with disabilities and autistic spectrum disorders: everyone involved learns all stages of the production process, in accordance with their psychophysical abilities: procurement, supply, maintenance and financial reporting.

When it was founded, “Chicco Cotto” was already predicted to be a resounding failure by a large number of its competitors. Yet now, ten years after its creation, this “differently-automatic” enterprise (the name is a play on “diversamente abile”, or “differently-abled”) has seen many fall by the wayside, whilst attracting significant investment. Not due to miracles, but rather thanks to excellent managerial skills, and a faith in the abilities of each and every person involved. Today, “Chicco Cotto” supplies schools, hospitals, libraries and large companies nationwide.

The entire story is told here in nine chapters and a little over a hundred pages, which are easy to read but must be carefully considered. No element of the story is kept from the reader. Above all, no attempt is made to hide the problems that needed to be overcome, the stops and starts – or the desire to arrive at the end goal. On every page, therefore, is the story of a social enterprise that is also a company that holds its own on the market, with the courage to be like all the others. A company that – among other things – proposes a new system of training and work, an example of a partnership between a school and a company that is spreading both nationally and across Europe.

At the heart of the story are a few core ideas, such as the ability to invert the perspective with which we look at things, but also the power of patience, which is not the same as wasting time (bringing to mind the power of patient capital, so often invoked today), as well as the effectiveness of the method and the uniqueness of people, with each individual viewed in terms of what they are and what they can do. Important concepts relating to business management, such as sustainability and breakeven, meritocracy and growth are also present throughout the book,  and the preface by Gian Antonio Stella is written with great care.

Bonsignori and Ferrando’s work is not a saccharine story of an exciting adventure, but rather an effective account of something much more concrete: a perfect manual of corporate culture.

Il coraggio di essere uguali. L’impresa diversamente automatica di Chicco Cotto (The courage to be the same. Chicco Cotto, a differently-automatic company)

Andrea Bonsignori, Marco Ferrando

Edizioni Terra Santa, 2020

In December 2014, the Pirelli Foundation dressed in white to tell a “winter’s tale” of art, research, and technology. In the exhibition we looked back at the evolution of Winter tyres, as interpreted by great painters, designers, and photographers in the company’s most famous advertising campaigns. The first Pirelli winter tyre, the Artiglio, appeared in the April 1932 price list as an alternative to the Normale tread pattern for cord tyres. It was a tread “for snow, frost, and wet roads”, that produced a “cog-wheel effect” in the harshest road conditions. In 1951 the new Inverno tread pattern was studied and marketed, and in 1957 came the Nuovo Inverno version. The Dutchman Bob Noorda designed the advertisements, taking inspiration from the tracks left by his skis on the snow, from the geometrical shapes of snow crystals, and even from the stylised profile of a fir tree.  And Riccardo Manzi, Alessandro Mendini, Ilio Negri and Giulio Confalonieri were also called in by Pirelli to create advertisements for the company’s entire range of winter tyres. For the launch of the BS, the first detachable tyre tread, Ermanno Scopinich immortalised a group of ice skaters at the ice stadium in Cortina d’Ampezzo in a photo shoot and a TV commercial. The concept of the detachable tread achieved success in rallying in the late 1960s, and it was these races that gave the idea for a new technological leap forward in the field of winter tyres. This came in the form of the Cinturato MS35 Rally, the street version of which became what is now the extended Pirelli Winter range. A host of technological knowledge, complex graphics, calculations, charts and technical drawings, together with international advertising campaigns, went on display in the coldest season of the year.

The story of statistics, explained in a powerful and effective manner, in order to gain a better understanding of what is happening around us, and to enable us to act accordingly

Improving our knowledge to improve our management: while certainly not a new principle, in recent times, it has once again been seized upon by many. It is a question of reporting, and of the complexity of becoming. In a situation of this type, it is important to attempt to recapture not only a healthy critical spirit, but also a knowledge of the techniques used for analysing reality. One of these techniques is based on statistics, and for this reason, it is useful to read “L’arte della statistica. Cosa ci insegnano i dati” (The Art of Statistics: How to Learn from Data) written by David John Spiegelhalter, who has been working on this subject for decades, and who is currently in charge of managing the Winton Centre for Risk and Evidence Communication at the Cambridge University Statistical Laboratory.

Spiegelhalter addresses statistics not only – and indeed, not so much – from a theoretical perspective, but above all from a practical and functional point of view. His book – around 300 pages of sometimes challenging but nonetheless accessible text – opens with just one key concept: in an era when big data is becoming established as a core discipline in the world of economics and finance, and indeed in all aspects of political and social life, having an awareness of the basics of statistics is more important than ever.

The author then guides the reader through the essential principles of a fundamental universe, beginning with specific case studies taken from everyday life before going on to introduce more general concepts. After a clear introduction to the topic, Spiegelhalter considers all the fundamental aspects of statistics: from regression to forecasting and from estimates to probability, before arriving at the complex ways in which the results of a statistical survey are communicated.

In other words, Spiegelhalter provides us with a real “toolbox” that enables the reader to get to grips with a subject that is no doubt useful, but which is often far from simple.

For everyone, some of the particularly important passages in the book include those related to the insistence on “data literacy”, i.e. the ability to focus on sources, data quality and the interpretation of this information. Also useful is the PPDAC diagram, a great help when addressing a number of problems, and not only those of a strictly statistical nature. A glossary at the end of the book really serves to enrich the content.

L’arte della statistica. Cosa ci insegnano i dati (The Art of Statistics: How to Learn from Data)

David John Spiegelhalter

Einaudi, 2020

The events that are occurring must be carefully observed in order to pinpoint the road to recovery and sustainable development.

 Taking positive action in the face of crises. No small goal, then. Especially when confronted with situations that push us “to the limit”, such as that generated by the current Covid-19 pandemic. “Dalla crisi allo sviluppo sostenibile. Il ruolo dei sistemi di misurazione e controllo” (“From crisis to sustainable development. The role of measurement and control systems”), the article by Luciano Marchi which appeared in one of the latest issues of the journal Management Control, has its own goal: to provide a series of useful indications to enable us to interpret the economic impact of the current crisis caused by the pandemic (and similar crises that may arise in the future), along with information on the conditions required in order to enable sustainable development. In other words, what we can do to transform a desperate situation into one that lays the foundations for the recovery of development.

Marchi bases his arguments on a single observation: that it is necessary to move from the assessment of the crisis to the generation of economic value and sustainability, which in turn requires a new approach to corporate governance, in order to interact with the social and environmental context, integrating both the risk management and performance management of each production organisation. In other words, we must all act in a coordinated manner, with our focus in the same direction.

In addition to all this, Marchi adds that the sustainability of growth can be strengthened and reinforced through the adoption of a new theory of value created for all stakeholders, including suppliers, customers, employees, the local territory and the social community, but also for the environment and the company itself. This, in short, serves as a guarantee of fair and balanced remuneration, as well as a sense of balance for companies, too.

But the reasoning at the heart of Marchi’s article does not stop here: he goes on to affirm that in order to ensure long-term economic equilibrium along with social, environmental and corporate sustainability, the role of measurement and control systems is fundamental. As such, a greater focus should be placed on integrated accounting and financial statement systems, and on a “systemic” reading of the indicators, as opposed to an overly precise analysis of these. We must also look to ensure adequate remuneration for the productive factors in the supply network, with a view to increasing the value created inside this network, and, finally, to a “culture of sustainability” that should be disseminated and applied to the planning, control and incentivisation systems for staff (integrating financial indicators with sustainability indicators), and not only to external reporting systems.

Luciano Marchi’s contribution to the debate on what we should expect from now on from social and economic systems is worth a close read.

Dalla crisi allo sviluppo sostenibile. Il ruolo dei sistemi di misurazione e controllo(“From crisis to sustainable development. The role of measurement and control systems”)

Luciano Marchi

Franco Angeli, Management Control, 2020, dossier 3

500 billion euro. This is the astonishing figure that reveals the resounding economic weight of the ‘Ndrangheta, Camorra and Sicilian Cosa Nostra’ organised crime syndicates. 500 billion euro of cash of criminal origins, “cleaned up” and re-directed through the trafficking activities of a Calabrian entrepreneur into an infinite number of investments in half the countries of the world. This figure is what has come to light from the investigation carried out by the DDA (the Direzione distrettuale antimafia, or Anti-Mafia District Directorate) of Reggio Calabria on Roberto Recordare, a businessman from Palmi, who has close links with local ‘Ndrine (units of the ‘Ndrangheta), as well as a range of international relationships with banking and tax havens (La Stampa, 28 November). And the operative leverage for this is a software and computer services company based in Malta with a very fitting name, Golem (the mythological clay giant with no soul or intelligence but with immense strength, obedient to its master’s orders).

500 billion is a lot of money. 30% of Italy’s annual gross domestic product. Or, to put it another way, more than double the amount made available for Italy by the EU Recovery Fund, the plan touted to bring us out of the depths of the Covid crisis and the recession within the space of five years. Or, to offer a final comparison, the equivalent, more or less, of the capitalisation (or in other words, the value of the shares) of the top 25 companies listed on the Milan Stock Exchange (Enel, Eni, Banca Intesa, FCA, Poste, etc.).

These comparisons are, of course, approximate, and certainly not scientifically rigorous. But despite this, they serve to provide readers with some idea of the terrible, dramatic economic force that organised crime continues to accumulate through the illegal activities in which the various clans are engaged (drugs, human trafficking, arms, recycling of polluting waste, illegal betting, speculation on public procurement and services, etc.), the proceeds of which are reinvested in apparently legitimate activities, thus disrupting markets, legal affairs, the activities of businesses that are above board, and the very function of public administration bodies. In summary, 500 billion euro of ‘Ndrangheta, Camorra and Sicilian Mafia money damaging our life and work, the environment in which we live, our health and the future of our children. The crazy wealth of Mafia organisations, to die by their hands.

The investigations (with extensive bugging and wire tapping, from which the investigators have gleaned data, information on investment schemes and partnerships, but also threats, and a scornful laugh at Daphne Caruana Galizia, the Maltese journalist murdered while investigating the affairs of Mafia clans in Malta) will reveal over time exactly how the criminal dealings run by Recordare and his accomplices functioned. And perhaps the work of the magistrates and investigators will make it possible to seize part of that great wealth founded on illegal business affairs.

The figure of 500 billion euro has been calculated on the basis of a series of operations spanning from the 1980s to the present day. And it is just one component of what scholars refer to as “Mafia S.p.a.”, an economic monster with revenues estimated at 150 billion euro per year by the Anti-Mafia Commission chaired by Giuseppe Pisanu (from 2008 to 2013) – with a total value of 1,700 billion euros. These are estimates, of course, since no one can access the accounts of the criminal bosses in order to do the exact sums. But these are probably estimates by default. The values are, without doubt, sky high. An imminent threat, not only to the economy but also to the very roots of society and democracy, and unfortunately, the worlds of public opinion and politics do not seem to have an accurate view of the risk this poses.

That figure – Recordare’s 500 billion – must be borne in mind right now, just as the judiciary and the DNA (the Direzione nazionale antimafia, or National Anti-Mafia Directorate) sound a new alarm: the gangs of Calabria, Sicily and Campania are moving in to take advantage of the Covid crisis, getting their hands on thousands of companies that find themselves floundering in order to make a profit from national and EU public funding.

According to the DNA, in the 2019 report extended until September 2020, criminal organisations “have succeeded in grasping the extreme urgency of protecting public health, using pre-constituted corporate shell companies to gain access to public tender procedures designed to award the supply of goods and services, by way of derogation from the rules set out in the Procurement Code” (Il Sole24Ore, 27 November).

The ‘Ndrangheta has had years of experience in speculative initiatives that have undermined the Calabrian healthcare system, now a resounding example of instability and disarray, from the high costs to the poor quality of services (finally, the government – after a period of indecision and a series of errors that bordered on the ridiculous – has appointed Guido Longo, former police commissioner and ex prefect, as the health commissioner in Calabria, after a professional life spent fighting the Calabrian and Sicilian Mafia organisations). However, the criminal activities have now extended into Lombardy and other northern regions, with health services and supplies (alongside illegal waste trafficking) becoming a new favourite area for shady investments and dodgy business deals. The Covid crisis and the necessary emergency intervention procedures are the perfect conditions for these criminals to expand their reach. And as such, we must keep a watchful eye out for the presence of these clans, to prevent them from doing serious damage to the health system and the economy by contaminating contracts and services.

There is also a second aspect to be considered, which reveals the subversive danger of the activities of the ‘Ndrangheta and other organised crime groups: the depredation of companies in difficulty, with intermediaries who arrive with cash in hand in order to buy shares in companies in crisis, particularly in the commercial tertiary sector (restaurants, bars, hotels and so on). This is what has been revealed by a research project entitled “La criminalità ai tempi del Covid” (“Crime in the time of Covid”), conducted by the Chamber of Commerce of Milan, Lodi, Monza and Brianza; the investigation demonstrates how, compared to last June, the number of “irregular proposals” has doubled – or in other words, the offers of economic aid designed to lure in companies, which are equivalent to a very small proportion of the value of the business in question. The liquidity crisis and, often, the difficulties in the relations with banks and the various structures that provide public financing, leave many entrepreneurs alone and vulnerable to the pressure to accept help from organised crime groups.

This phenomenon has long been the focus of attention by the Milanese Anti-Mafia Prosecutor’s Office, led with great efficacy by Alessandra Dolci: “It is important to report this when it occurs. But so far, this is still not happening, and we have several examples of acquiescence; that is, of individuals in the legal economy who have made themselves available to criminal organisations” (Corriere della Sera, 27 November).

The various business organisations are fully aware of these risks, and for years now have been pushing campaigns to raise awareness among entrepreneurs of the risks of the presence of Mafia organisations within the economy, and of the need for a clear, shared anti-Mafia commitment. “Corporate culture is responsible for ensuring the legality of business affairs. This, in essence, means being at the forefront of the battle against the Mafia, which is still alarmingly relevant in this day and age. On this issue, we must strengthen our commitment, working with all the key players in the social and economic sectors who care about freedom. And we must seek a truly European approach to tackling this issue, because today, organised crime knows no borders.” This is the crystal clear statement made by Alessandro Spada, president of Assolombarda, at the association’s assembly in mid-October. And new initiatives are being prepared.

The driver and entrepreneur Vincenzo Lancia had the dream of having a car manufacturing company of his own, and on 27 November 1906, in Turin, he made it come true. And he continued to dream of racing and winning with his cars, and of bringing beauty and elegance to the world of automobiles. The partnership between Pirelli and Lancia achieved success not only in the field of racing, but also in that of production models. Especially in the Lancia Aurelia, when in 1950 Pirelli fitted the B20 Coupé Gran Turismo version with its Cinturato tyres: a perfect combination that combined the performance of the six-cylinder Lancia and the road-holding capabilities of the Pirelli radial.

Their work together on the Aurelia project also remained at the same high levels in the sports versions of the car – especially when the 2.3-litre Aurelia was launched on the market. They were just a step away from the racing circuits. By the mid-1950s there was no road race, from the Targa Florio to the Mille Miglia, without an Aurelia fitted with the Pirelli Cinturato. The Aurelia was also adored by coachbuilders, and by Pininfarina first and foremost, for its clean, rational lines, and the design of its tyres perfectly matched the aesthetic appeal of the car. The “road” version of the Aurelia was replaced by the Flaminia in 1957.

A vehicle of great style and a veritable “status car” – so much so that it became the official car of the President of the Republic – the Lancia Flaminia required the development of a special new 175 x 400 Cinturato. It was also one of the models for which tyre dealers at the time recommended the exclusive white-sided Cinturato. Meanwhile, the sports version of the Aurelia entered the world of racing: again accompanied by Pirelli, this gradually led to the victories of Alberto Ascari and Piero Taruffi in their D24 “barchette”, through to its arrival in Formula 1 in 1954.

The sporting partnership between Lancia and Pirelli lasted for another thirty years: in the late 1960s, a new sport called “rallying” saw the success of the Lancia Fulvia HF, which Pirelli fitted with its CN36. Then came Sandro Munari’s Lancia Stratos, which called for the development of the brand-new Pirelli P7. And then there were the racing versions of the Lancia Beta: the Montecarlo for touring, followed by the 037 for rallying. This continued all the way to the time of the Lancia Delta, the same age as the P Zero, which still leads the way in Pirelli performance today.

Let’s take a current snapshot of Italy, condensed into four key figures. The first of these is a percentage, -10%, which indicates the negative growth of the country’s GDP, the gross domestic product, as forecast for this year (an average of the -9% anticipated by the government, the -9.9% calculated by the EU Commission and -10.6% suggested by the International Monetary Fund). The second number is 209 billion, which is all the resources that our country could invest if we use the funds provided under the European Union Recovery Plan effectively. The third number is, again, a percentage: 155.7%, the ratio of public debt to GDP, which according to the government, will need to be reached in order to recover the funds required for the measures needed to deal with the economic and social emergencies, from the pandemic to the recession (this was at 135.7% in 2019). The fourth number is -0.5%, which refers to the drop in productivity in Italy in 2019, a particularly alarming figure due to the fact that it comes after twenty years of stagnant productivity, while the average for other EU countries is on the rise. Once again, our economy is plagued by serious weakness, which the current crisis is only serving to amplify and aggravate.

It is worth looking at these four numbers together when considering the choices we need to make to get out of the crisis, and when planning the necessary reforms that must be undertaken in order to be able to talk about development and improvements to the state of public finances.

We are facing an unprecedented recession, and to a certain extent, this is the case worldwide, but in Italy, we have been harder hit than elsewhere. Indeed, alarmingly so in the regions of the North where the dynamics of production (between industry, services and tourism) were substantially driving the rest of the country. The response to this situation does not lie either in the illusion of returning to ‘how we were before’, nor in the endless continuation of subsidies. These are essential, but only in emergencies: in order to provide a guaranteed income for families and people in difficulty and to prevent the total collapse of businesses. However, in the long run, this type of financial aid can be harmful because it hampers initiative, restricts expectations for improvement and breaks down faith and trust .

If anything, the available resources should be channelled into innovation, into the radical recovery of productivity and into reforms that can finally help to modernise the country’s system. So here we are again, back at the challenge represented by productivity.

‘Productivity: Italy slips below zero’, read the headline on the front page of the newspaper Il Sole 24 Ore newspaper as it published the data released by Istat at the beginning of November. For around twenty years, the country’s productivity has remained close to zero, while the European average has grown by 1.6%. Now, in 2019, we have dropped even lower, if we take into account labour productivity (the added value created per hour worked) at -0.4%, capital productivity, at -0.8%, and total factor productivity, -0.5%. To sum up, among the reasons for the Italy’s slow growth is the fact that nothing we do serves to increase our wealth overall, and this has a negative effect on incomes, employment and general well-being. The Istat data stop at 2019, ahead of the Covid-19 pandemic and the recession. Accordingly, as far as 2020 is concerned, the situation is set to be even worse.

If we take a close look at the data, we discover a number of very interesting facts. For example, we can see that the productivity of industry is clearly growing, as a result of investments in new technologies, machinery and training of staff in line with the shift towards a high-tech, digital approach. On the other hand, the rates in the tertiary sector remain very low, hovering around zero or dipping into negative figures, particularly in services that have little exposure to international competition and in retail trade and personal services, where there is a large number of very small, poorly organised, undercapitalised and therefore fragile businesses. The productivity of the public administration sector is also extremely low, hindering and undermining the efforts and attempts at growth made by the better companies.

‘Our productivity has not grown for twenty years. And this is the one merciless fact that sums up how far behind we are more than any other. The added value rises – along with wages and salaries – if there are investments, technologies, innovation and, above all, a better-trained pool of human capital,’ writes Ferruccio de Bortoli in his latest book, Le cose che non ci diciamo (‘The things we don’t say to each other’) published by Garzanti – a lucid analysis, as well as an uncompromising synopsis of the choices that must be made and the reforms that are essential in order to get wounded Italy back up and running.

The recipe for emerging from the crisis has been common knowledge for a long time, but unfortunately, it still remains to be applied: major investments in innovation, knowledge, research and technology transfer. Schools and training, therefore, must be top priority, in order to create human resources who can withstand – and indeed steer – the challenges posed by innovation. Then, the next step is to open up the markets to greater competition, which serves to stimulate growth. Furthermore, reforms must be implemented in both national and local public administration, tax and judicial structures (‘To attract capital from abroad, reforms are needed, beginning with law and order: with faster processes, we could hit figures of up to 170 billion’, notes an article in L’Economia, a publication owned by the newspaper Corriere della Sera, on 23 January). And furthermore, the diffusion of a business culture that is closely linked to competition, merit-based rewards and all that is both ‘beautiful and done well’. Innovation, to be precise.

And so we arrive at the EU Recovery Plan. What we need is a few major investment projects using EU funds, channelled into the green economy and the digital economy, or in other words, sustainability and innovation (we talked about this at length in last week’s blog). Innovative companies must be helped to grow, skilled work must be stimulated, and long-term training must be promoted, along with infrastructures – both tangible and intangible – in the interests of quality of life and work. Just a few big, well-planned, well-constructed projects, agreed with the powers in Brussels, with properly defined instruments, timings and implementation of controls.

This represents a remarkable political, social, cultural and entrepreneurial challenge, for a relaunch of the country that truly does feel like a ‘rebirth’, a radical paradigm shift marked by sustainable development choices with a focus on environmental and social factors. Not the practice of throwing resources into a thousand different channels, simply to satisfy corporations and clients in the short term (a VAT cut here, a citizens’ income there, with a new hire and a tender or two thrown in for good measure and so on, willy nilly). Rather, a forward-looking, ambitious strategy for growth, engaging social forces who are ready and willing to take on a serious chunk of responsibility.

The answer to the issue of public debt lies here: in growth. Without any need to think about improbable ‘cancellations’, but rather knowing that the ECB is still vigilant, keeping rates low and absorbing part of the new issues into its capacious belly; the EU will be able to rediscuss the vestments of economic convergence, but only when faced with recovering economies and public finances that are in the process of balancing their books once again.

In short, there is a long-term connection between healthy public coffers and stable, well-rooted growth. Free from ideological visions. But with a sense of responsibility. Towards whom? Above all towards our children and grandchildren, to whom we look with generous intelligence, given that the debt will actually fall on their shoulders. Or Next Generation EU, as the Recovery Plan is rather fittingly named.

A dissertation presented at the University of Padua seeks to specify the characteristics and conditions necessary for the effective dissemination of knowledge within companies

Knowledge for growth. While this would appear to be a natural and straightforward concept to put into practice, in reality, it is very complex. Training, keeping skills up to date, questioning tried-and-tested but somewhat tired company practices – these are just some of the tasks that fall under modern human resources management. However, this is something that must be fully understood, and measured each and every time against the reality faced by the production organisation to which it is applied. The dissertation recently presented by Martina Spinello as part of her degree course in Economics at the M. Fanno Department of Economics and Business Sciences in Padua addresses a number of aspects relating to the theme of training, which are always worth returning to.

We can grasp the basic hypothesis of Spinello’s investigation from its title: ‘L’importanza di investire nella formazione e nelle competenze’ (‘The importance of investing in training and skills’). In a labour market that is now saturated, and with basic skills that are often common to many, says the author, it is essential to know how to set ourselves apart, through the professional skills and personal knowledge that can increase our performance and as a result, that of the organisation for we work. This is not simply a case of learning repetitive manual skills, but rather something that has become wider and more complex.

Spinello thus examines this subject first from a theoretical point of view and then through a case study of a real company. As such, she takes a range of different aspects of training into consideration, such as those related to the human capital present in the company and by extension, that of ‘continuous training’ as an essential element of the company organisation in its various incarnations, along with the concept of gamification, which she presents as the final frontier of company training. The case study looks at Sixton Peak, a safety footwear brand owned by Maspica S.p.A., which employs around 600 people.

Spinello concludes her work not only by stressing that flexible training is the goal that both workers and companies should pursue, but also by honing in on one particular aspect: that the best form of training is that which succeeds in finding the right balance between the commitment it requires, the costs necessary in order to deliver it and the results (in human as well as economic terms) that it manages to achieve. In other words, good training and a good business culture must also take into account the numbers that come into play.

L’importanza di investire nella formazione e nelle competenze

Martina Spinello

Dissertation. University of Padua, M. Fanno Department of Economics and Business Sciences, Master’s in Economics, 2020

The theme of project management approached from a different point of view

Behind and inside every business project are people. This may seem somewhat banal, but in reality, it is a fact that should not be taken for granted. Overwhelmed by the process of digitisation and by the vast number of new technologies that now exist, we often run the risk of forgetting the central element of any production organisation: the human being.

Hence the importance of reading La prospettiva degli stakeholder. La gestione delle relazioni per aumentare il valore ed il tasso di successo dei progetti (‘The perspective of stakeholders. Relationship management to increase the value and success rate of projects’), a book of little more than a hundred pages written by Massimo Pirozzi and based on the analysis of business projects from the point of view of individuals, i.e. those who – by force of habit – are often referred to as stakeholders.

The intention of the author is clear: to place the person at the heart of things, both with regard to projects and to the process of project management. The aim is not only to give greater weight to the human aspect of this work, but also to increase both the value it generates and the success rate of the projects themselves.

Pirozzi’s book is simply divided into two parts: in the first, he describes the stakeholders, while in the second, he addresses the correct approach to managing relations with and between stakeholders. From an operational perspective, the book presents a collection of innovative, immediately applicable and highly effective techniques for the identification and analysis of stakeholders, and for the effective management of relations with them. Before this, the concept and the reality of stakeholders are analysed in depth, and the author first classifies these and then identifies the way in which they approach business.

Pirozzi demonstrates how the critical factor in the success of all projects is the satisfaction not only of requirements, but also of stakeholder expectations. And so, basing his argument on a different use of critical success factors, Pirozzi concludes by proposing a new method for the effective management of complexity and for the generation of value.

This book by Massimo Pirozzi is not always an easy read, but should nonetheless be tackled seriously in order to build a culture of production that is up to date and alert.

La prospettiva degli stakeholder. La gestione delle relazioni per aumentare il valore ed il tasso di successo dei progetti

Massimo Pirozzi

Franco Angeli, 2020