ISSUE 11 MADEIN - english version - 2C

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madein fashion information and technical culture from 2C Coveri

GENERATIONAL TURNOVER AS A POSSIBLE GUIDE FOR FUTURE COMPANIES. Data on generational succession within family businesses casts alarming doubts. Which conditions are necessary to convert transition into an opportunity for growth?


inthisissue Scandicci, september 2017 “madein” is a publication owned exclusively by 2C Coveri srl and dedicated to providing company information for in-house and public use. Under Section 2 of Law no. 62/2001, this publication is not required to meet the criteria for periodicals set down by Law no. 47/1948. GRAPHICS, LAYOUT AND PRODUCTION esociety marketing


How “lean” manufacturing can help companies improve. The importance of Human capital, the true fulcrum for change.


TEXTS MarketingCamp

Generational turnover is often seen as an opportunity, even though current data casts alarming info on the subject. What does it take to make it work?

PHOTOS Marco Peluso



State-of-the-art tablets help improve departments. Expansion continues, alongside an increase in resources dedicated to quality assurance.

PRINTED BY Grafiche Leonardo PRINTED ON Paper obtained from recycled material. Deinked without using bleaches. Not treated with whitening agents. Certified for production emission control and environmental sustainability. © COPYRIGHT 2017 All parts of this publication, except where indicated, are the property of 2C Coveri Srl and are protected by the laws that cover authors’ rights and industrial property rights. Any brand names mentioned for information, didactic, or illustrative purposes are the property of their respective owners. Personal data is processed in accordance with Legislative Decree no. 196 of 30 June 2003.

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GENIUS LOCI: PALAZZO PITTI'S WHITE ROOM 6 In Florence, inside Palazzo Pitti's White Room Italian fashion turned international and influenced the daily choices of millions.



The combination of metal and varnish brings real beauty to our accessories and jewels. A feature on our new galvanic department.


Lean: increasing efficiency through learning organization.


Putting people at the centre in order to reap the benefits of Lean manufacturing and create true value.

The implementation of “lean” production as a corporate management model is increasingly widespread, even in small and medium-sized enterprises on the lookout for innovative methods to further assure market penetration. Change is at the very core of the path we have decided to undertake. I believe that a company without change is a company bound to disappear, since it is incapable to meet the market's ever-evolving needs. It is

quite clear that change must take on a lasting and incremental role and this possibility lies in the reshaping of corporate culture, where mankind and process organization should be the very heartbeat of its daily mindset and behavior. When it comes to change, the underestimation of human resources inevitably leads to failure. Essentially speaking, lean production focuses on creating value by reducing all low or non-value added activities. In other words, it's not only about tech-

nologically enhancing the work process: it's about identifying all the components that actually do not bring added value. By virtue of this consideration, I strongly believe that the value a company is able to obtain by embracing the principles of lean manufacturing cannot solely be ascribed to customer-side advantages, such as flow optimization and waste reduction, for it also manifests itself through the valorization of the very human capital involved in the change-making process. For a company wishing to take on a process of business change, the human resource represents an important asset for its ability to develop, learn and improve – which provides the perfect starting point to take on the challenges that the market forces upon us on a daily basis.

The High-Velocity Edge. How Market Leaders Leverage Operational Excellence to Beat the Competition of Steven J. Spear.

Leonardo Viti Control and Continuous Improvement manager

«Lean Production aims to combine the flexibility and quality of craftsmanship with the low costs of mass production».

The Economist

Lean thinking. Banish Waste And Create Wealth In Your Corporation of James P. Womack e Daniel T. Jones.

Toyota way to Lean leadership. Achieving and Sustaining Excellence Through Leadership Development by Jeffrey Liker and Gary Convis.

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Generational turnover creates value and redirects the business for the future. A new opportunity for innovation and the right conditions for a change in leadership.

Generational transition is an increasingly addressed topic, given the latest alarming data: 600.000 jobs are lost every year in Europe and Italy. A catastrophe of epic proportions with lasting effects on the cultural, social and economic values of the country. It's clearly a case where one can apply the “half-full half-empty glass” proverb and – perhaps the most important among entrepreneurial skills – the ability to see opportunities where others only see threats. In this edition of MADEIN, we want to realistically confront ourselves with the issue of corporate succession as to also offer food for thought on the opportunities that are embedded in such moments, when the company's potential can be fully optimized, thus generating growth and prosperity. Let's start with the facts, spearing the subject with one of the European countries with the highest number of “family businesses” : Italy. Here, out of 80.000 entrepreneurs only one fourth makes it through the first succession, while only 14% and 5% are left standing after a second and third succession. A mere 63% of the ones able to survive the generational turnover doesn't last more than 5 years. These results have been made even bleaker by the effects of the recent crisis and the less recent globalization. One of the typical traits of “Old Guard” entrepreneurs is their strong personality – charisma, the power to make everyone believe that nothing is impossible. Although this works as an important drive for business, in the long-run it becomes the very weakness of family-run capitalism. The more the success of the company is linked to the skills of one, specific individual, the less likely one of its successors will be able to fully take on that role. A couple of multinational corporations know these dynamics very well and have learned to do great business with family-run brands: over the past few years alone, in Italy about 500 have handed over the reins to foreign groups. Let's face it: entrepreneurial succession can be quite critical, to the point of being considered an actual “cancer” for family-run capitalism.

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Although on one hand it is often impossible to peacefully deal with this kind of passage among relatives, on the other there has been an improvement in the support system. Alongside legal, financial and asset management specialists, “succession technicians” are taking on an increasingly crucial role. And because this kind of phenomenon involves change, generational succession is a catalyst for unlimited innovation and future thinking, which supply opportunities for technical-operational development, potential structural variations and the elements necessary for functional and strategic change. However, certain conditions must be present in order to enable an innovative change in leadership. It is of crucial importance that the successors are well-prepared, displaying expertise when it comes to their company and the governance of change. It is also preferable to delegate to experienced managers - better if chosen out of the family circle - as well as to look beyond the “win/lose” conflict by overcoming the fear of involving other figures, whether they are relatives or external. Last but not least, one must also learn to carefully plan the transition in order to make sure that the new dynamics don't shock or surprise the subjects involved, thus fueling conflict and its undesired side-effects. In short, while past numbers speak of a majority of unsuccessful generational successions, the future looks brighter – an industry's value is too precious to be wasted on fights and generational misunderstandings. A well-managed entrepreneurial turnover can be a unique opportunity for change and innovation. However, the family and people involved must have specific skills in the field of “change management” as to assure that succession and development strategies meet and merge in the medium-long term.


Intuito e strategia Author: Angelo Arcuri A book that handles complex issues in a simple and concise manner. In his latest work, Angelo Arcuri uses storytelling to tackle the topic of strategic management in small and medium-sized enterprises. In particular, he recalls the story of a fashion brand that started off as a small, artisanal endeavor and managed to evolve and overcome hard times by radically changing its approach and gaining management skills.


The company’s response INTRODUCING MOBILE TECHNOLOGY INTO THE DEPARTMENT: THE ADVANTAGES OF NEW TABLETS The whole world is going “mobile” and so are we, by investing in state-ofthe-art tablets equipped with apps specifically designed to control processes, production and quality. The advantages of the dedicated Apps were clear even during trials: increased efficiency, statistical process control, higher productivity and significant quality growth. Although tablets aren't new to production processes, we wanted to implement this kind of technology while properly educating and involving our employees. Once more, we would like to stress the concept of introducing “Technology for the people” - not the other way around – in order to guarantee significant, sustainable and lasting results. The tablet is the perfect tool for a production plant: it is small, light and handy. It doesn't require cables or interfaces and it is extremely versatile when it comes to sectors that demand speed, practicality and an obstacle-free environment. We are sure that the widespread use of this technology in production and manufacturing industries will contribute in improving all processes, but most of all it is a lever of worker involvement and motivation.

MORE RESOURCES FOR QUALITY CONTROL. Some of our clients choose us for our fast-paced production, others for our creativity and ability to dutifully meet their requests - but what they all have in common is their desire for quality. For over 40 years we have been focusing on quality improvement, raising the bar higher each time. This is the reason why we have decided to further invest resources in this sector. A tight-knit and highly qualified team inspects both visual and mechanical characteristics. Our new quality officers are easily recognizable thanks to their attire, which further underlines their role as main spokespeople for the company's key values – dedication, passion, technical skills, superior materials, excellence – in the eyes of the client.

OUR NEW ESTABLISHMENT'S DEPARTMENTS ARE ALREADY HARD AT WORK. There's no stopping the expansion works on our new establishment. The project is quite ambitious and is animated by our desire to give new life and space to the forgotten arts and crafts of our tradition, vital in further exalting the luxury and fashion sector. A few of our departments are already active within the new structure. A NEW TABLET IN THE GALVANIC DEPARTMENT

TRADITIONAL MANUFACTURING MEETS DIGITAL FUTURE. The 4.0 industry is an innovational process that we have been resolutely implementing without however losing sight of our customers, employees and know-how gained over decades. In the second semester, the company will also establish itself on the main social channels deemed strategic to our field of expertise: Facebook, YouTube and Linkedin. We would like our skills, our product and the so-called everyday #factorylife to clearly shine through in order to tell the story of our brand and our core values. This is a visual, interactive and shared way of forging connections between traditional manufacturing and digital future.

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Palazzo Pitti's White Room.

A Renaissance setting to put a spotlight on “Made in Italy's” noble origins.

There is an undeniable link between art and fashion and its modern roots have found fertile soil right in the city of Florence. Before the 50s the fashion industry was close to non-existent. Each city had its own tailors and the most renowned would put their most exclusive creations on display. Then, all it took was a day and a name to change things forever. A few Italian dressmakers such as the Fontana sisters, Jole Veneziani, Fabiani, Pucci, Noberasco, Carosa and Schuberth walked a collective catwalk on February 12 1951 in Villa Torrigiani, then residence of Giovan Battista Giorgini. From that day on, fashion left the static urban displays behind, embracing fascinating historic settings in order to dynamically tell a textile tale of imaginative materials, refined tailoring and wearability. After a short transition through the halls of Florence's Grand Hotel, for the following 40 years one place became the undisputed stage and launching ramp for memorable fashion shows: Palazzo Pitti's White Room. It is here that Italian fashion broke its boundaries and became international, influencing the choice and taste of millions of individuals. Palazzo Pitti is the epitome of Renaissance architecture, undoubtedly one of the Florentine Oltrarno's main attractions. Alongside the bustling Boboli gardens, the palace boasts a number of activi-

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From May 16 2017, the two museums have joined in the same circuit as the Palatine Gallery, the Royal Apartments and the Gallery of Modern Art, all visitable by purchasing a single, non-separable ticket. OPENING HOURS Tuesday through Sunday: 8.15 am – 6.50 pm Closing days: Mondays, January 1st, May 1st and December 25th The ticket office closes at 6.05 pm The museum starts closing down at 6.30 pm


ties and is also home to the Palatine Gallery, the Modern Art Gallery, the Museo degli Argenti, the Porcelain Museum, the Carriage Museum and Costume Gallery, the latter being the most important fashion-centered institution in Italy. This museum houses a collection of over six-thousand artifacts among which one can admire accessories, various pieces of clothing and costumes from both theatre and cinema productions. These objects offer a detailed reconstruction of the stylistic trends that have taken root over the years. The collection includes eye-catching creations by stylists the likes of Giorgio Armani, Emilio Pucci, Valentino and Gianni Versace. Giovan Battista Giorgini chose the White Room as a place to globally showcase the young designers of his time. He created a series of events so extraordinary that they confirmed Florence's status as the capital of fashion and personal care. It was immediately evident that the White Room's Renaissance setting enhanced and satisfied the widespread desire for beauty and luxury. Years of poverty and war had left a deep need for redemption and the White Room supplied the magic that contributed in fully promoting the noble origins of the “Made in Italy” mark.

PALAZZO PITTI Piazza de' Pitti, 1, 50125 Firenze PITTI IMMAGINE UOMO 2017









Inside the company: stories and people The section dedicated to our people: in this issue we focus on our galvanic department.

ROMINA SARZANA DILJA STOSIC ISABELLA unbinding department supervisor PELOSO department supervisor


OPERATIONAL EXCELLENCE, SUSTAINABILITY AND EMPLOYEE ENGAGEMENT. Competition is one of the fashion world's major drives. Both big and small brands alike seek out extreme innovation, high-performance and better solutions for environmental impact, as well as creativity and a painstaking attention to detail. Thanks to this ongoing incitement, over the past six months 2 Coveri has invested in the expansion and reorganization of one of its top departments: electroplating. Just by walking through the new wing one can immediately notice an increase in working surfaces, more specialized employees and enhanced space functionality. Another feature that jumps out


is the implementation of Lean Visual Management tools and the introduction of tablets in the production process. The department has also invested in personnel development, therefore the transformation not only involved the machinery but also a “technological innovation at the service of the workforce”. Each and every employee will benefit of better interactions and involvement. By reorganizing this department, the company aims at further strengthening motivation and enhancing personal experience. The new Galvanic system is among the most modern and stateof-the-art of its kind. It assures high-quality



treatments, fast-pace deliveries and a wider array of possible finishings. The department guarantees a range of colorations and hundreds of topcoats, from traditional to more peculiar processes - such as aging that confers a more “vintage” look to the accessories. Each year, the new Galvanic department will produce hundreds of metal pieces with the least environmental impact: modern wastewater and air cleaning technologies have reduced overall consumption by over 90%. The new department distinguishes itself through operational excellence, care for its employees and attention to the environment.


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When it comes to quality, the direction taken by production companies has changed significantly over the years. Product verification and flaw detection are just the beginning: in our day and age Quality Management is one of the direction's key allies, no longer considered a “censor/inspector” but a close-knit, collaborative team at the service of all.

FOCUS: THE ARRIVAL OF ARTIFICIAL INTELLIGENCE. The way we produce and supply goods and services is undergoing unforeseen and unforeseeable changes. In the upcoming issue we will analyze the possible scenarios and cornerstones of this “revolution”, as well as shine a light on how the implementation of artificial intelligence will shift man from the realm of the mechanically repetitive to more essential, value-adding roles in the workplace.

2C di Coveri S.r.l. accessories for leather goods, footwear, and ready-to-wear clothing REGISTERED OFFICES: via Poliziano 5 Firenze PRODUCTION PLANT: via San Colombano (loc. Granatieri) 187/a Scandicci, Italy tel +39 055 7311219 - 720546 fax +39 055 7310156 VAT no. 01357460482 -

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