The Center for Paper
Business & Industry Studies
– CPBIS –
-- An Overview -Hercules Visit
– December 2005 –
1
Agenda
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Alfred P. Sloan – The Benefactor
The Sloan Foundation – An Overview
Sloan Industry Centers – The Genesis
A Sloan Industry Center – The Context
CPBIS – An Overview
 Who
Wh and
d What
Wh t is
i CPBIS
 Vision, Mission, Strategic Platform
 Key Alliances & Support
 Programs – Focus Areas and Outputs Illustrations
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2
Discussion – Questions – Issues Looking Out
Alfred Pritchard Sloan, Jr., 18751875-1966
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1875 – Born New
Ne Haven,
Ha en CT
1892 – Admitted to MIT (electrical engineering)
1899 – President
P id t off H
Hyatt
tt R
Roller
ll B
Bearing
i Co.
C
1916 – President of United Motors
1918 – Vice President, General Motors
1923--1946 – CEO, GM
1923
1934 – Established Alfred P. Sloan Foundation
1937--1956 – Chairman of the Board, GM
1937
1966 – Passed On at The Age of 91 . . .
Th Alf
The
Alfred
d P.
P Sloan
Sl
Foundation
F
d ti
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Philanthropic nonprofit institution based in
New York with assets of more than $1 billion
Has p
programs
g
in
 Science & technology
 Standard of living
g & economic performance
p
 Education
 Careers in science & technology
gy
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4
One initiative in the second category is the
Industry Centers Program
Sl
Sloan
I d t Centers
Industry
C t
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5
"The objectives
objecti es of this program are to create
an academic community that understands
industries and to encourage a direct approach
to the companies and people of each industry
for data and observations.
observations. We believe
observation--based work by well informed
observation
academics will, in the long run, lead to
practical
ti l contributions
t ib ti
t
to
th
the
i d ti
industries
studied"
What
Wh t Is
I A Sloan
Sl
Industry
I d t Center?
C t ?
An academic unit focused on an industry sector
A joint venture of academe, industry and the
Sloan Foundation
A creator and disseminator of business and
social sciences based knowledge
g
An attractor of business and social sciences
faculty and students to industry
The nucleus of an academic community that
understands industry
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There are Now 26 Centers …
Legal &
Consulting
Paper
Information
Storage
Airlines
Managed
Care
Motor
Vehicles
Financial
Software
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Travel Tourism
Aluminum
Forest
Products
Biotech
Food
Steel
Trucking
Construction
SemiSemiConductors
Apparel
PharmaPh
Pharmaceuticals
Industrial
Performance
PCs
Telecom
Printing
Materials
Metallurgy
Electricity
Retailing
… at 18 Major Host Institutions
UC San Diego
MIT
Harvard
Minnesota
Tennessee
Georgia Tech
Carnegie Mellon
Kentucky
Wharton
Worcester Poly
RIT
Pittsburgh
Columbia
UC Berkeley
VPI
UT Austin
Maryland
8
IPST
UC Irvine
A Sl
Sloan Center
C t E
Example
l -- A b
broad
broaddbased and highly collaborative team
effort
ff
….
9
…. created the Center for Paper
p
Business and Industry Studies
in Late 2000
Or – CPBIS
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CPBIS S
Seminal
i l Events
E
t
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Sloan -- IPST contact in 1999
Survey of industry leaders (CEOs)
D t
Determination
i ti off hosts
h t – GT & IPST -- interest
i t
t
IPST--GT collaborative proposal development
IPST
CPBIS (Center) established in Fall 2000 with
$2.1 MM Sloan Grant & $1MM industry funds
Sl
Sloan
Renewal
R
l Grant
G
t Approved
A
d Fall
F ll 2003 ffor
$1.3 MM Plus Industry Funds to Expand
S
Second
d Sloan
Sl
Renewal
R
l Grant
G
t Set
S t For
F Fall
F ll 2006
AU
Unique
i
C
Combination
bi ti
 IPST
– A leading
g research center in paper
p p
industry technology
 Georgia Tech -- GT -- liberal arts, management
and engineering units
 Ivan Allen College
 DuPree College of Management
 College of Engineering
 Sloan
interest -- parallel efforts & funds
 Paper industry support -- financial and inin-kind
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Center Vision
CPBIS is an internationally recognized
academic research center providing
business knowledge of relevance to the
global Forest Products Industry
Research Led – Business Focused
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Center Mission
The overall Mission of the Center is to
become the preeminent business
studies research and education
enterprise dedicated to business,
management, and social science
i
issues
off the
th global
l b l Forest
F
t Products
P d t
Industry. Its purpose encompasses
several important elements --
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Center Mission Elements
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Focus on research issues in the pulp, paper, and more generally, the
Forest Products industry
Identif de
Identify,
develop,
elop and support
s pport research on business,
b siness management
management,
and social science issues that are of critical interest to industry
stakeholders
Conduct research that studies the industry by direct observation
observation,
providing research results that are of high, practical value to the
industry
Create an academic community that together with stakeholders
understands the Forest Products Industry
Disseminate and communicate research findings to the global Forest
Products Industry in order to facilitate better decisiondecision-making in an
increasingly competitive environment
Provide programs and forums to build management and analytical
capacity within the Forest Products industry
Produce skilled,
skilled industry
industry--oriented Ph
Ph.D.
D and M
M.S.
S graduates in a
variety of disciplines
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Center Objectives
j
A basic Center objective, consistent with the Sloan
Industry Centers Program and with Industry
Leadership, is to gain an improved understanding
of strategically important managerial
managerial, economic
economic,
social, and organizational challenges facing the
Industry in a global environment.
environment Creating an
integrated set of high quality research programs
and innovative educational offerings
g will achieve
this . . .
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. . . Center Objectives
j
 An
equally important objective is to build and
sustain ties between the Industry and the
academic community in ways that address
issues of interest to Industry
y stakeholders and
scholars. This will include such arenas as
relationships between culture and organizational
effectiveness,
ff i
Industry
I d
responses to the
h
changing business environment, shifting
regulatory processes
processes, and emerging trends in
information technology. Thus, the programs
developed are intended to fuse practical and
theoretical concerns.
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Center Core Strategic Themes
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The Center focuses on five strategic themes, jointly
identified by industry and the academic community
to encompass the business issues most critical for
successful industry performance:
 GLOBALIZATION – international forces
 ENTERPRISE EFFECTIVENESS – factors affecting
company performance/competitiveness
 WORKPLACE TRANSFORMATION – organizational &
human
u a resources
esou ces c
changes
a ges
 INNOVATION – opportunities to stimulate new
thinking – products – practices – technologies
 COMMUNITY – relationships with constituencies
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Center Faculty &
Management Functions
RESEARCH FACULTY
50+ from GT,, IPST,, UGA,,
Ecole Poly., MSU, RIT &
U. FL
AFFILIATES
from Other
Universities
Director
Research
Director
Education
Director
Admin
Assistant
Operations
Manager
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Executive
Director
Development
Industry
Liaison
IT & Web Site
Center Leadership – Staffing
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Key Personnel
 Director – School of Economics
 Executive Director – Industry Executive
 Emeritus Director – Technology Center
 Associate Directors – Colleges
g of Management
g
& Liberal Arts/Social Sciences + Technology
Research
 Education
 Industry Liaison
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C t O
Center
Organizational
i ti
l Structure
St
t
-- Follows
F ll
Board of Executives
Vision & Strategic
Direction
Vice Provost Research
Center
Organization
Chart
-- Staff Support -Business Operations Plus Internet &
IT Support, Development, &
Communications and Administrative
Assistant
Associate Director
- Research -
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Management Board
Center Steering
Committee
Director
-- Research & Academics -Center Administration
Executive Director
-- Center Development, -Industry Connectivity
Outreach Programs
-- Emeritus Director -Center Administration &
Connectivity
Associate Director
- Education -
Industry Advisory
Board
--Tactical Direction -Connectivity
Associate Director
- Industry Liaison -
Industry Support – IAB & Financial
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Abitibi-Consol
AbitibiConsol’’d
Accenture
Albany Int’
Int’l
ArborGen
APRIL
AstenJohnson
Australian Paper
BE&K
Bowater
Buckman Labs
ForestExpress
Forestw
Forest
web
Georgia--Pacific
Georgia
Gulf States
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Imerys
I l d Paperboard
Inland
P
b
d
Jacobs Engineering
Kruger
g
MeadWestvaco
P. H. Glatfelter
Potlatch
Sappi--North America
Sappi
Stora Enso
Tembec
Tradition Financial Services
UPM––Kymmene N.
UPM
N Am.
Am
Weyerhaeuser
Alli
Alliances
– In
I -Kind
InKi d Support
S
t & IAB
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PIMA
TAPPI
AF&PA
USW (PACE)
PAPRICAN
PAPTAC
FPAC
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Forestw
Forest
web
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PaperAge
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Ecole Polytechnique
NC State University
Oregon State University
A b
Auburn
U i
University
it
Finnish Forest Research Institute
Fisher International
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Center Board of Executives (BoE)
The purpose of the Center
Center’s
s BoE is to
provide a crucial link to leading executives,
thinkers and senior administrators -- both
inside and outside the Industry -- that can
help provide guidance and input to advance
the mission and strategic pathway of the
Center by better connecting the Center to
the world outside the campus environment
environment.
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Center BoE -- Voting Members
1.
2.
3.
4
4.
5.
6.
7
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17
17.
18.
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19.
Weyerhaeuser Company – Executive Vice President (BoE Chair)
Buckman Laboratories – Chairman (BoE Vice Chair)
Caraustar Industries -- President & CEO
Metso Paper -- President
Georgia Pacific Corporation -- President & CEO
Canfor Corporation -- President & CEO
Albany International Corporation – Chairman & CEO
Forest Products Association of Canada (FPAC) -- President & CEO
Nucor Steel -- Executive Vice President
CIBC World Markets -- Managing
g g Director
John Hancock Financial Services -- Managing Director
PACE/USW -- President
Federal Reserve Board of New York -- Vice President
Sloan Industry Trucking Center -- Director
North Carolina State University -- Provost
Institute of Paper Science & Technology -- Director
Mead Witter Foundation – President
Georgia Tech -- Vice Provost
Georgia Tech -- Ivan Allen College Dean
C t B
Center
BoE
E – Non
N -voting
Nonti Members
M b
 Irving Forest Products -- Vice President
(Center IAB Chair)
 Imerys
y -- Vice President ((IAB Vice Chair))
 Center -- Director
 Center -- Associate Director, Industry
y Liaison
 Center -- Development Director
 Center -- Executive Director
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C t F
Center
Focus A
Areas Hi
Highlights
hli ht
 Research
 Education
 Connectivity
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& Engagement
C t R
Center
Research
hF
Foundations
d ti
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Generates o
own
n data through
thro gh field work
ork and
observation--based methodology
observation
Studies the industry -- not just things
important to the industry
Primarily business/social sciences -- rather
than technology
technology--oriented
Results disseminated to both academic and
industrial audiences
C t R
Center
Research
hP
Projects
j t
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Fifteen projects, with subject matter
representative of each of the five core
CPBIS strategic themes:
 Globalization
 Enterprise Effectiveness
 Workplace Transformation
 Innovation
 Community
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Projects run for 11-3 years
Center Research – Globalization Example
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Chinese Demand – Findings indicate that
paper consumption in China has grown in
lockstep with GDP but has the potential to
increase more rapidly given the
comparatively low usage of paper per
capita. Demand has grown more
responsive to price with increasing
privatization of the Chinese economy since
1993.
C t R
Center
Research
h – Globalization
Gl b li ti &
Enterprise Effectiveness Example
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Market Pulp – Careful modeling indicates that mills
producing napkins could improve their financial
performance
f
b using
by
i pulps
l off enhanced
h
d quality.
lit
Alternative pulps, if resulting in savings of
approximately
pp
y 5% in manufacturing
g or in products
p
carrying a 5% price premium, would generate
increasing returns even if they cost as much as
16% more than current pulp
pulp. Tests evaluate
characteristics of various pulps and suggest which
ones might offer economic returns of this sort.
Center
Ce
te Research
esea c – Enterprise
te p se
Effectiveness Example
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Industry
I d t Consolidation
C
lid ti
(and
( d Antitrust)
A tit
t) – A variety
i t off studies
t di
examine the changing competitive structure of the industry and
its performance across time. Historical studies document the
role of antitrust in shaping industry structure and competitive
strategy. They suggest that government policy, which blocked
firms from achieving market dominance in particular product
segments and regions while tolerating diversification into new
markets, may well have discouraged certain forms of
innovation. Economic analysis of consolidations since 1970
indicate that increasing
g consolidation has been accompanied
p
by improved priceprice-cost ratios, but that firms have not generally
succeeded in pushing prices higher. Overall economic
performance, despite the improved ratios, has lagged during
this period of increasing concentration.
C t R
Center
Research
h – Enterprise
E t
i
Effectiveness Example
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Forest Biotechnology – A modeling exercise
suggests that genetically engineered loblolly pine
containing
t i i 20% higher
hi h specific
ifi gravity,
it if substituted
b tit t d
for 20% of existing plantings in the Southeastern
U.S., could g
generate as much as $300 million in
savings per year in a standard linerboard mill
operating in the region. Existing tree breeders who
reviewed the model affirm its presumptions
regarding forest practice as realistic.
Center Research – Enterprise
Effectiveness Example
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MRO Supply Chains – Response to a survey of mill
managers, though limited, indicates that mills are
limiting the number of contractors for maintenance,
repair, and operations and are entering into
contracts of longerlonger-term duration. This result
suggests that mills are positioning themselves for
ongoing partnership arrangements with suppliers,
which have proved beneficial in other industries.
industries
Center Research – Enterprise
Effectiveness Example
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Integrated Environmental and Economic
Performance – Working in collaboration with
industry partners at two newsprint mills, researchers
developed novel spreadsheetspreadsheet-based accounting
systems intended to map traditional economic
performance meas
measures
res alongside a set of meas
measures
res
based upon resource inputs and outputs (expressed
in terms of mass, energy, etc.). This work provides
tools for alternative assessment of mill performance
under different regulatory and economic conditions.
Center Research – Enterprise
Effectiveness Examples
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Price Forecasting – Researchers developed a tool
for forecasting prices for linerboard, semisemi-chemical
medium, hardwood pulp, and softwood pulp. It is
freely available on the web.
Trucking Logistics – Corrugated box plants vary
considerably in the ways they organize outbound
shipments. While most have turned to thirdthird-party
operators
p
to handle scheduling,
g, contractual
arrangements vary significantly. Potential savings
through use of best practices range from 9
9--33% at
three plants studied in detail
detail.
Center Research – Workplace
Transformation Example
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High Performance Work Systems – A survey
of human resource managers offers a profile
of various workforce practices deployed at
paper mills during the past decade. As of
September 2004, the results covered some
31 plant locations.
Center
Ce
te Research
esea c – Innovation
o at o &
Community Example
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Historical perspectives – Research completed in this area
traces the long history of innovation and competitive
strategy in the American pulp and paper industry,
including several examples of product innovation.
innovation One
line of research here maps the industry’s response to
water pollution regulations, paying particular attention to
h
how
such
h regulation
l ti
influenced
i fl
d investments
i
t
t in
i research
h
and, ultimately, deployment of mill technology. This
project considers the role of collaborative research and
it effectiveness
its
ff ti
in
i promoting
ti
innovation.
i
ti
This
Thi project
j t
helps orient newcomers to the industry and provides
lessons from past experience that should prove useful as
the industry responds to future changes in the
competitive and regulatory environments.
Center Research – Community Example
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Black Liquor Gasification – Researchers assessed
existing and potential networks among mill
managers, community officials, government
regulators, and scientific researchers who might
organize efforts to promote black liquor gasification,
one of the most promising alternative technologies
in pulp production. They conclude that a strong
basis for potential collaboration exists, but raise
doubts about whether such collaboration will be
mobilized given spotty research funding and a
strong current commitment to improving existing
boiler performance.
T i l Center
Typical
C t Research
R
h Outputs
O t t
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P
Papers
and
d presentations
t ti
on research
h findings
fi di
White Papers (commissioned research)
 “Is there a p
productivity
y gap
g p between the U.S. and
European Pulp and Paper Producers?”
http://www.paperstudies.org/research/WhitePaperTe
chnologyGap.pdf

Database Tools -- examples
 Price Behavior Tool for Pulp and Paper Industry
 Includes price movement charts for several grades
and a live forecasting tool
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Center Research Comm
Communications
nications

Primary Dissemination Vehicles:
 Papers and presentation made in academic circles
and journals
 Industry trade journals
 At companies –TAPPI – PIMA – Other Industry
Conferences/Venues
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Issues
 Enhanced Access to industry personnel & data for
basic industry information & surveys
 Continual IndustryIndustry-based needs inputs &
assessment
 Enhanced Industry awareness of CPBIS – its value
proposition & potential
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C t Ed
Center
Education
ti Initiatives
I iti ti
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Creation and Delivery of Courses on Campus
Creation of Course Modules for Use Within
E i ti Courses
Existing
C
on Campus
C
Involvement of Students in Research and
Internships on and off Campus
Professional Education (PE) & Distance
Learning Webcast Programs + Seminars &
Conference Programs
P f
Professional
i
l Education
Ed
ti Program
P
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Management Development for Enhanced Performance
 Art of Leadership
 Effectively Managing Change
 Creating
g Successful Bargaining
g
g & Negotiations
g
Outcomes
 Effectively Managing High Performance Teams
 Leveraging People Resources for Improved
Performance
 Improving Capital Effectiveness
 Strategic Decision Making Under Uncertainty
 Customer Relations Management
On Campus WeekWeek-long Course – Twice Per Year
Excellent feedback from attendees
Di t
Distance
Learning
L
i Webcast
W b
t Program
P

Real Time -- Online short courses
 16
16--20 sessions planned / year
 Offered jjointly
y with PIMA

Distance Learning Webcast Program Examples
– 5 to 9 Ninety minute sessions per program
series offering – 2 to 3 series per year:
 “Defining and Achieving a Reliability Culture”
 “Problem Solving at the Speed of Business”
 “Meeting Effectiveness”
 “Enhancing Leadership and Supervisory Skills”
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Sponsors:
CPBIS -- Paper
Industry
y Connectivity
y
[ e. g. PIMA, Paper Age]
Industry/Academia/
Associations
To Partners
To CPBIS
To Sponsors
p
Research Results
Education Products
Academic Connectivity
Challenging the Status Quo
Communities of practice
Sloan
Foundation
Core Funding,
Principles, &
Directives
Industry Access Support
Contacts
Research Ideas/Focus
IPST@GT
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Industry Support & Access
Industry Connectivity
Issues & Ideas Awareness
Strategy
PE Course Partnering
Industry Knowledge
Sharing
Sh i Resources
R
Research Results
Membership Support
CPBIS
To CPBIS
 Infrastructure
Support
 Industry Access
Support
 Contacts and
Knowledge
To CPBIS
CE Course Partnering
Industry Connectivity
Issues/Ideas Sharing
Sharing Resources
Business Impacts,
Improved Skills,
In-depth
p Knowledge
g
To CPBIS
To IPST@GT
Center Partners
 Research
Faculty & GRAs
 Teaching
Faculty for CE
 Infrastructure
Support
Center
Sustainability
y
To GA TECH
Research & Education $
Industry
Connectivity/Knowledge
Research Seminars
Academic Courses
Student and Faculty Support
GA TECH
Current Communications to Industry on
g g
CPBIS – Engagement
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Monthly Electronic Newsletter
Website www.paperstudies.org or
www.cpbis.org
Numerous Presentations on CPBIS across
North America
Center Brochures & Marketing Materials
F
Frequent
t Collaborative
C ll b
ti Meetings
M ti
–
Discussion Sessions with Industry
Management
Discussion – Questions
– Issues Looking
g Out –
47
Visit the CPBIS Web Site
www.cpbis.org
bi
or
www.cpbis.gatech.edu
48