Dear Jim,

I enjoyed reading your article on "Taking R&D Seriously". As someone who has spent his entire life working (since 1974) in various research and technical development roles supporting the Australian pulp and paper industry and having seen the same malaise occur "Down Under" as you have described, I can only support your views. Mind you I don't think the industry has helped itself with some very poor investment decisions that invariably result in cost reduction measures shortly thereafter and where R&D is invariably a major casualty, being such a soft option.

I spent 28 years at Amcor R&T which once had a fabulous reputation for doing excellent fundamental research, a reputation that was progressively eroded due to several reasons including poor management decisions and an ever stronger drive to get short term, incremental improvements rather than looking at longer-term major challenges facing or likely to face the industry - no doubt driven by the desire from those at the top to get their full bonus each year. I left Amcor in 2001 and today work at CSIRO, Australia's premier research organisation that employs some 6,000 people in 20 Divisions that collectively do both fundamental research and applied science for the public good and to support local industries. You would think that as a scientist this would be paradise, but rest assured it is not. I am starting to see the same issues in CSIRO that led to the decline of company based R&D in this country and again the pulp and paper industry is not helping itself. The group that I am part of is expected to bring in 47% of its budget as external earnings but at the same time are expected concentrate on doing only quality research that leads to publications in high impact journals, i.e., there is a major disconnect between what senior management here expects and what industry is prepared to fund. In short, I see little future in a scientific career in pulp and paper. I find this very sad - to some extent a career wasted.

With regards,

Nafty Vanderhoek,

Melbourne, Australia

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Jim

Re: Delays at the coffee bar.

1. Well it's free so what do you expect? Yah yah I know, nothing's free - we all pay for it one way or another! See, I do take what you write to heart. (LOL).

2. Folks may have waited for the ones ahead of them so they just think it's your turn to wait.

3. The people setting out the coffee and fixens don't think to separate the two so that more than one thing can go on at a time. I know it won't make you feel any better, but today I noticed that the Starbucks in the Target store in Prattville had the fixen's in one place so that only one person could doctor up their brew at a time. Can you drink Starbucks black?

4. Some folks are considerate and some ain't.

5. Try this: Yell FORE.

Re: R&D

Thanks for your thoughts on R&D. Having lived through that era, I can see why we lost R&D as many of our leaders were tracking just as you wrote, with short term goals. Do you think that is also the reason for the recent sell off of timberlands, that is short term stock price goals? I remember you writing about this with the thought that perhaps in the long run we'll get the land back at lower costs. Have I given you credit correctly?

Do any of the industry leaders write and give you a hard time for hindsight judgements? Just wondered. I think we should look at our errors in history with a eye toward not repeating them, as some famous person once wrote using the word "doomed" as I recall.

Won't make the Gulf Coast Local section meeting in Guntersville. Can't miss school. Have fun.

Peace,

Gene Canavan
Prattville, Alabama, USA

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Yes, Gene, I can drink Starbucks "black." I can also drink coffee cold, old and burnt. Re: timberland--a recent sale here in Georgia was at a record levels. Re: "Monday morning quarterbacking": I am guilty and have been recently discussing this with an executive in our industry. However, I tend (not a hard and fast rule) to cover hindsight here in Nip Impressions and provide foresight in The Thompson Private Letter.


Jim

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Dear Jim:

I am just back from my assignment in Venezuela. The new plant there is now on line but just as soon as it began shipping product the Venezuelan military and federal accountants arrived to nationalize it. It was simply amazing to watch communism advance every week as the country turns into another Cuba. There is a large military buildup underway complete with Sukhoi SU-30 warplanes stationed at a military base near the plant. The rumor is that the SU-30s will be used to attack Guyana or Columbia, probably Guyana, so that it can be annexed for its hydro power potential.

MR
Chillicothe, Ohio, USA

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Dear Readers:

The above letter, from a very credible source, is so sobering and important that I have directed our staff to put it in all our publications this month.

I was already swearing I would push my automobile with an empty gas tank past a certain brand of gas station that is known for a famous sign in downtown Boston, Massachusetts. This says I'll do it in a hail storm.

Jim

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