Il Corriere della Sera, September 23, 2007
Market and welfare, Italy and the Fiat economic scene The intervention of World Sergio Marchionne at the conference of "industry"
The history of Fiat needs to be placed and understood within the social context in which the turnaround has been achieved. Managing a business in Europe means first of all have to do with a model of capitalism that have characteristics very specific. Some economists are convinced that the European system - to improve productivity, efficiency and profits - should converge towards the American model. I do not think that this type of convergence is possible in the medium term, but I do not believe it would be desirable. European organizations are born and raised in a cultural soil fertilized by two historical conditions: a tradition of openness to the relatively new market and a strong sense of social responsibility. There is no single model of capitalism. United States, Asia, Europe are all in competition with each other but no one converges to anyone else. The only common denominator is the market. These organizations give their best when they are made bath and open competition in the global economy.
is the concept of social responsibility that distinguishes Europe from the United States. According to OECD analysis, public social spending is about 27% of GDP in France, Germany and Italy - in Sweden even 38% - while it is around 16% in the U.S.. The difference between the levels of public spending - European and American - is manifested clearly in 1975. Since that time there is a significant increase in spending in Europe while in the U.S. remains constant over time. Investigate what are the reasons is the job of politicians. Whatever the reason, these differences exist, and anyone working in Europe should consider this particular social and political context. I am convinced, not only on the basis of my experience in Fiat, but also in other European industries, which can and must seek constructive dialogue. And the solutions can be found. In
Fiat have obtained important results on the path of dialogue. After ten years-and without an hour strike, which is a quite unique event for Italy was re-signed-business integration. After ten years were recruited in the first young factory in exchange for working overtime shifts. We have signed an agreement with local institutions for the rehabilitation of Mirafiori, the largest Italian industrial complex, involving also launching a new line of production and absorption of short-term layoffs. The results achieved by Fiat show that similar transformations are possible, even in a country with a strong consciousness and union with what the majority of Anglo-Saxon commentators would call "inflexible structure of the work." If I had to choose between trying to resolve the report of General Motors and its union (UAW) to treat or employment levels in Europe, I would prefer the latter.
There is no doubt that the productivity and flexibility are key elements of our industrial development. In this context, Italy is far behind the rest of Europe, but I remain convinced that the path of constructive dialogue that the problems can be solved. If a liberal society must stand the test of time, is in its interest to support those affected by the change.
Europe can and must be distinguished in the creation and operation of free markets, recognizing and dealing effectively with the consequences of their activities on their members. It must do so in an honest and fair, without falling prey to some too protective mechanisms that are already in use in some countries and especially in Italy, can seriously threaten the country's industrial recovery. But the commitment exists and can not be ignored. The development of an enterprise is not just a question di tecnologia o di risorse finanziarie. È prima di tutto una questione di cultura. Le nostre imprese hanno bisogno di abbracciare la sfida del nuovo e pensare al futuro come a una grande opportunità. Hanno bisogno di un contesto trasparente e altamente competitivo. Hanno bisogno di vivere la cultura del cambiamento come una necessità. Di misurarsi ogni giorno sul merito, di fondare le proprie radici sui valori della concorrenza e del mercato. Quello che ogni Paese può fare è garantire che questa partita si giochi alla pari, che le opportunità siano le stesse offerte ad altre imprese in altri Paesi. In Italia non sempre queste condizioni sono così facili da trovare.
Qualche ragione c'è se gli investimenti esteri sono ancora così low. And these reasons are called bureaucracy, services, infrastructure, taxes and operating costs. From my personal experience, I saw that the red tape at the end protect inefficient companies, companies that have no prospects of development and in most cases downloaded costs on to customers. The bureaucracy does nothing but food itself. Because it brings the company to close like a clam, to protect what already exists, without ever addressing the challenges of change. Similarly, there are other important elements to build an economic system that can show "attractive" not only for those who already work in Italy but also for foreign companies. I think the improvement of public services, the creation a network of efficient and modern infrastructure, starting with the road network and transport in general. But I think also to reduce the tax burden and the cost of energy as an issue in Italy is quite disproportionate to the rest of the industrialized countries.
All these arguments apply even more so for southern Italy, where priority is to bridge the gap with the rest of the country. But the perspective from which we must move can not be that charitable. The culture of welfarism produces dependence and off the spirit of initiative and sense of responsibility. The work is created only if the economic mechanisms are efficient and if the market demands are high. In this way the culture of change and competition can find fertile ground. I believe that the case of Fiat is just one example of the restructuring of Europe and force positive change. Our change was made by a group of international managers, many of them Italians, who have embraced the idea of \u200b\u200bglobal competition and are willing to get involved and to involve other stakeholders in the economic system to achieve the necessary levels of competitiveness . Large organizations are the result of the leadership of men and women who understand the concept of service, community, respect for other fundamental and inspiring. There
una storia che oggi non vi ho raccontato. In un certo senso è troppo presto per raccontarla, è la storia della trasformazione personale dei leader che sono stati coinvolti nel rilancio della Fiat e delle persone che gestivano. Ci sono dozzine di esempi simili e indubbiamente più validi e significativi: General Electric negli ultimi 25 anni, prima con Jack Welch ed adesso con Jeff Immelt; la resurrezione di Ibm operata da Lou Gerstner, le esperienze di Robert Oppenheimer nel Manhattan project con il team che ha costruito la bomba atomica, l'incredibile vittoria di Bili Clinton nelle elezioni presidenziali del 1992. Ma l'elemento comune a tutti questi casi è che tutti hanno lasciato un segno indelebile sulla formazione e sulla crescita dei leader. Sono cambiati forever.
We are learning how to live from survivors and we are developing the ability to think ahead in an aggressive and positive. And we're doing in a country that has often been labeled by the Economist structurally and chronically loser with titles such as "Goodbye. sweet life "and" Do not cry for me, Italy. But this is proof that there is hope for us all, not even the British have the ability to go beyond the limits of credulity and imagination. After all, the history of Fiat is the story of the power of leadership and lack of fear of an intact group of leaders committed to achieving the goals. In the words of Mel Gibson in Braveheart: "Men do not follow men. The men follow courage. " And maybe we have to agree with a political theorist much misunderstood - Niccolo Machiavelli - that about 600 years ago, said: "The return to the principle is often determined by simple virtue of a man. His example has such an influence for good men want to imitate the bad ones and they are ashamed to lead a life contrary to his example. " In
Fiat we are building a team led by men and women of virtue. It is thanks to their courage and their virtues if I can now conclude by quoting the end of the book''A History of Two Cities''by Charles Dickens and paraphrasing the last words: "It is a Far, Far Better Thing Fiat does, Than it has ever done. It Is A Far, Far Better Place is going to it Than it has ever gone. " Translated: "Fiat is doing much, much better than it ever did. It's going to a better place, much better than it has ever been. "
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