Economy of Communion in EA XII: Aspects of Communion

Communion can be carried out daily, both in personal and business life. To represent it through a metaphor, the light can be considered. When a light beam passes into a prism it is refracted in seven colors (red, orange, yellow, green, and blue, indigo, violet). So, to consider the person at the centre of the business has infinity of concrete implications and nuances. Rainbow Score (Golin and Parolin, 2003; 2006) is a management tool based on a balanced scorecard approach. Rainbow Score also goes one step further. It assigns a value to each aspect which is not solely dependent on the effect of financial performance – financial performance being regarded as only a part of overall performance. It highlights and defines all forms of wealth produced, espe­cially those supported by ethical motives or ideals. Through the seven color frame we describe seven business and human aspects and present an explicit value creation structure – both stock and flow – which can inspire effective strategies, managerial methodologies, accounting and reporting methods.

  1. Economic dimension – Red. The economic and financial dimension is the first business aspect we consider: this indicates a company’s health and is the combined product of the commitment, professional competence and skills of the entrepreneur and employees. We can include a financial analysis but we must also look at other processes and information involved in value creation. Planning and account­ing for healthy company growth requires us to consider different aspects beyond just profits and profitability, e.g. new job opportuni­ties – considering quality and amount, salaries and benefits – and solidarity inside and outside the company.
  2. Relational Capital: Orange. The second aspect is relational capi­tal seen as the combination of all real and potential external rela­tionships of the company. Here we highlight a basic dimension for the company – the customer and supplier network. Total Quality Management and Stakeholder Theory (Rusconi, W. P. 2008) have already focused their attention, embedded in management practices, on various customer interests, indicating different ways of identify­ing and answering specific needs. Relational capital can be consid­ered in three ways: as direct relational capital, basically needed in trade exchanges, for instance when participating in fairs; as indirect relational capital, i.e. all the sets of relations which help develop the company reputation, e.g. public solidarity actions; and as relational goods, referring to the contents of human relationships, independent from any immediate financial benefit, i.e. as in friendship between colleagues.
  3. Corporate culture Yellow: Describing corporate culture is the first step towards rediscovering the original reasons behind the forma­tion of the company, and involving people working at the company in this process arouses enthusiasm and the search for practical ways to align stated values with company life. Managers know that val­ue alignment and trust increase both efficiency and effectiveness, whilst controls and sanctions can fail and be costly. This is why it is worth evaluating ethical effectiveness by analyzing whether mana­gerial behavior, strategic choices, internal and external relations are consistent with the business mission ethical commitments.
  4. Social and environmental quality Green: It examines what contrib­utes to well-being in the company and in some ways represents both welfare and a well-being health index. A challenge facing manage­ment lies in creating more responsible and less stressful workplaces. Empowerment and engagement can help generate organizational trust which results in real well-being in the company. Moreover so­cial quality is strictly connected to environmental quality: both need to be planned and accounted for to maintain deliberateness and con­tinuity. In this way company initiatives can be models for the civil society.
  5. Human capital and working community – Blue. The fifth dimension considers human capital and the working community in all organi­zational forms and expressions, the ultimate aim being to harmonize them. The organizational setting through which the company out­lines its manufacturing and working teams is not complete by itself but is already a clear expression of the value given to the people working within it. In this way the organization has a strong influence on the company’s development, not only regarding process efficien­cy but also process contents. Moreover, the organizational style can­not be separated from the relational style and the corporate cultural identity, but expresses them in daily management: the organizational role might assume the functional role by allocating everyone to the right place so that they are at ease and can give the best of their pro­fessional and human competences and skills.
  6. Intellectual capital: education, training and innovation – Indigo: Intellectual capital is linked to talent exploitation and in the organiza­tion evolves from the supply and demand of various stimulations oriented towards the development of the company which come from both external and internal sources. Frequently, the scenarios that managers deal with are those of innovation and know-how growth. It is a context exposed to risks of individualism and intellectual capital concentration on one or few people which can increase competitive­ness and be of detriment to the work climate.
  7. g. Communication – Violet: The last dimension is a cross key to many of the topics discussed above: corporate internal and external com­munication. The meaning of communication may sometimes appear to overlap with that of information so that one might be distinguished from the other.
Good Communication results in New Behavior

Nevertheless, etymologically, communica­tion is more than just an exchange of information; when applied in its broadest sense it assists the information to become operational, eventually resulting in new behavior. Moreover, effectiveness in communication is due to the obvious possibility of speaking the same language and being in harmony with the addressee’s aims and values. This demands a similar, shared experience to create the “we” feeling. This might require adapting the language to that of the stakeholders involved. A result is seen in active feedback and general participation.

Rainbow score considers the production and relational aspects of the firm

Real and effective strategy becomes operational whenever it can be both a guide and a process of analysis. From this perspective the seven colors report­ing system, which is a natural implementation of Rainbow Score, helps ex­plain the reasons for the company’s success and suggests actions to improve it. Meanwhile the inner connection among various aspects makes manufacturing processes and relational dynamics comprehensible (Golin and parolin, 2003 and 2006). Giving each aspect a value in itself permits us to consider every single aspect as a stepping stone to others. In the same way that the seven colors of the rainbow come from the same light, inside the company all choic­es, events and problems are integrated and inter-dependent with each other.

 

Paul Kisolo: Executive Consultant KARDS

Millicent Agutu: Administrator KARDS

Francis Owino: Administrator REG

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