THE BUSINESS CORNER    

Boom, Gloom and the New Normal - Part 7      

(Access Archives for:  

Part 1, Part 2, Part 3, Part 4, Part 5, Part 6)   

By Paul Hodges, International eChem 

Lessons from Consumer Markets

Consumption dominates chemical demand. Chapter 7 of our new 'Boom, Gloom and the New Normal' eBook therefore looks at the changes taking place in consumer markets. These provide vital insight into how chemical markets are likely to develop in the New Normal.

 

The key learning is that companies are re-adapting their business models. The great companies of tomorrow will build their businesses by learning to provide products that are of genuine benefit to society.

 

We therefore highlight three case studies to help companies develop their thinking in this critical area. These build on the Scenarios and Critical Success Factors that we developed in chapter 5.   They provide concrete examples of the changes already being made by far-sighted businesses in different regions.

 

• Procter & Gamble, the world's largest consumer products company, is now following a 'white space' strategy to reposition itself for future growth.
• We also look at the lessons to be learned from the launch by India's Tata Motors of the world's cheapest car, the Nano.
• Plus we highlight the new business and technical innovation models being successfully developed by the Bill Gates-funded Meningitis Vaccine Project in sub-Saharan Africa.

 All three examples highlight the opportunity for companies to grow sustainably and profitably as we enter the New Normal. They also support the new concept of Shared Value developed by Professor Michael Porter in the Harvard Business Review (January 2011).

 

As Porter summarizes the position, "Firms have focused on enticing consumers to buy more and more of their products. Facing growing competition and shorter-term performance measures from shareholders, managers resorted to waves of restructuring, personnel reductions and relocating to lower-cost regions, while leveraging balance sheets to return capital to investors. The results were often commoditization, price competition, little true innovation, and no clear competitive advantage....Companies have overlooked opportunities to meet fundamental societal needs....Our field of vision has simply been too narrow."

 

We argue that doing nothing, and hoping that yesterday's consumer-led boom will reappear, is no longer the low-risk option for companies, faced with today's slowdown in profits and growth levels. Those who shut their eyes, and hope that things might one day return to the 'old normal', are likely to be very disappointed.

 

'Who dares wins' might instead be a good motto to post on every boardroom wall. This, after all, is how today's great companies built their franchises in the past, through world wars, depressions and many other equally uncertain times.

 

 

Go to www.icis.com/NewNormalEbook to download Chapter 7.

 

Chemicals and the Economy blogger. Register & chat with Paul on ACS Webinars Dec. 15, 2011 on Chemistry and the Economy 2011 Year-End Review and 2012 Outlook.

 

Email us chemical business topics you would like us to cover in future issues.

 

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CONSULTING TIP OF THE MONTH  

Professional Engineering Registration       

Peter O. Staffeld, PhD, PE, Staffeld Engineering Services 

There is a common misconception that only engineers who "stamp drawings" need to be registered professional engineers.  Actually, in most states, anyone who either offers or performs engineering services of any kind needs to be registered with the state.  In Pennsylvania, the practice of engineering is regulated by Act 367 of 1945. Section 3(b) defines an engineer as a person who practices engineering or in any way represents himself or herself as an engineer.  The definition may vary somewhat from state to state, but this is typical.

As a chemical engineer I have never stamped a drawing, but as an engineering consultant I am required to use my stamp on any "work product" (in my case, final specifications and/or reports) for my clients. 

A frequent pathway to "unlicensed practice of engineering" occurs when an engineer is outsourced.  Suppose that an engineer (let's call him Ed) is employed by a company and working under the supervision of a licensed professional engineer (Paula).  Note that Ed is not required to be licensed because he is working under the "responsible charge" of Paula.  One fateful day, management decides that Ed's job should be outsourced ... and the company hires Ed to continue the work.  Ed is now working as an independent engineering consultant (a 1099 contractor, not a W-2 employee) and he is required to be licensed.  This is true even though Ed is working at the same desk ... doing the exact same job ... and still reporting to Paula.  While Paula may be in responsible charge of the company's engineering project, Ed is now in responsible charge of his consulting work product which is being sold to his former company. 

While getting licensed is not a particularly easy process, it is absolutely necessary for an engineering consultant.  Engineering registration is regulated at the state level; you can find out more about getting licensed at www.ncees.com, which has links for each state. 

Dr. Staffeld is President of the Pennsylvania Society of Professional Engineers - Lehigh Valley Chapter, and has written and lectured on the subject of professional engineering registration.  He is currently an engineering consultant at Staffeld Engineering Services, and an Assistant Professor of Chemical Engineering at Villanova University.  Prior to becoming a consultant he was Vice President of Manufacturing for a plastics company, and held various positions at Mobil Oil Corporation.  He can be contacted at peter@staffeld.com or president@lvpspe.org. 

This monthly tip is brought to you in collaboration with the Chemical Consultants Network. Have a comment? Go to Chemical Consultants Network LinkedIn page.

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THE WRITING CLINIC - The Doctor is IN 

"Stocking Stuffer" Writing Tips    

By Kristin Sainani, PhD., Stanford University. 

(This month's QUIZ to test your writing knowledge).   

When it comes to improving your writing, sometimes small changes can make a big difference. Here are three simple tips to improve clarity, readability, and concision:

1. Eliminate negatives; use a positive construction instead.

Instead of: She did not want to perform the experiment incorrectly.

Use: She wanted to perform the experiment correctly.

Instead of: He was not right.

Use: He was wrong.

Instead of: The drug was not believed to be harmful.

Use: The drug was believed to be safe.

2.  Follow "the rule of threes"; three is the ideal number when making lists or citing examples.

Instead of: They gradually reduced the number of employees: in 1980, the company had 300 employees; in 1995, 150; in 2000, 100; by 2005, when the company was in its final year, only 11.

Use: They gradually reduced the number of employees: in 1980, the company had 300 employees; in 1995, 150; by 2005, when the company was in its final years, only 11.

3.  Eliminate superfluous uses of "there are"/ "there is":

Instead of: There are many chemists who like to write.

Use: Many chemists like to write.

Instead of: There is a mouse in the cage.

Use: The mouse is in the cage.

Instead of: The data confirm that there is an association between vegetables and cancer.

Use: The data confirm an association between vegetables and cancer.   

For more details on usage, see Strunk and White's classic, The Elements of Style. Examples from: Watson & Crick, Joe Klein, Roger Angell, Dickens, Louis Menand.

Kristin Sainani is a clinical assistant professor at Stanford, where she teaches statistics and manuscript writing. She is also a freelance health and science writer.

Want more tips? View Kristin's recorded presentation and register for Kristin's upcoming ACS Webinars presentation.   

Have writing questions for Kristin? Email us your questions or tips you would like Kristin to cover in future issues.

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FROM THE LAB CORNER    

Tips on Handling Job Loss   

By Chemjobber

With the recent announcement of layoffs at Amgen and Merck, I was moved to start "The Layoff Project" on my blog, which is an attempt to collect as many oral histories of our times in the pharmaceutical and chemical industries. I asked my readers to write in with their stories of job loss and to answer a few questions about what they did to cope with such a great loss. Over the past two months, I've accumulated over ten of these stories on my blog and I continue to do so. While some may view this as an exercise in pessimism, I've found it incredibly moving to read the stories that people have written. I also think it's wise for younger chemists (like myself) to be mentally prepared for the near-inevitable likelihood that we will face job loss. 

What have I learned? A few basic lessons:

Job loss is a big, big deal: Emotions include grief, anger, betrayal, fear and desperation. While one storyteller mentioned the word 'relief', it's obvious that it's incredibly painful. While friends and family can help, the healing process takes time. 

Be good to yourself: Because it's such a traumatic event, there's nothing wrong with taking a little time to yourself. While most who wrote in began looking for a job sooner rather than later, some took small (and financially prudent) vacations to decompress. 

File for unemployment right away: pretty self-explanatory. 

Network, network, network: All mentioned relying on friends, family and former coworkers to help them find another job. As one writer succinctly said, "When you are out of a job, let people know. Let everyone know. There is no shame in losing your job, not in this economy."

Good luck and good hunting.

Chemjobber is a working chemist in industry and a blogger on employment in chemistry. 

Have lab/career questions? Email us your questions that you would like The Distillate to cover in future issues.

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• December 1, 2011 - C&EN Webinars Complex Materials Characterization with High Definition Mass Spectrometry 
• December 6, 2011 - C&EN Webinars Application of Modeling and Simulation to Nanotechnology  
• December 8, 2011 - CM&E Webcast, Panel on "Anatomy of a Deal - Part 2," 
• December 8, 2011 - C&EN Webinars Automated Measurements of Electrophoretic Mobility (Zeta Potential) for Proteins, Biopolymers and Nanoparticles  
• December 13, 2011 - C&EN Webinars Using Synthetic Tools Prepared by Automated Oligosaccharide Chemistry
  to Interrogate Complex Biological Systems     

Appetite Suppressant Chemistry  

Read More >> 

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Chemistry Spy Heroine and Lemon Juice   

Read More (BBC News) >> 

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Send us your correct answer to win the lapel pin. Three winners will be selected for this popular pin. This month's quote was submitted by Janelle Brosky-Washington with Sherwin Williams.  

Email us (distillate@acs.org) your answer by December 15, 2011 to be entered into the drawing. Please use QUOTE for the subject line. The answer to the quote and the winners will be posted in next month's edition.

Congratulations to Stephen Simpson of Exeter, UK, Linda Geddes of Monravia, CA, and Pauk Kiehne of Blaine, MN. Winners were randomly selected from all the correct entries received (Answer: Who is Ernest Rutherford). Thank you to all who entered the contest.

Have a favorite quote? Please email us (distillate@acs.org) and if we use your submission, we will send you a prize.