1. More of the same… “We’re working with wood, so what is there?” – American Manager

2. “…we just make buggy whips, as fast as we can.” – American CEO

3. “…we are really trying to, as we say in our strategy, we are developing innovative solutions for our customers” – European Manager

4. Industry Tradition and Evolution Production orientationProduction orientation –“If yield is the main measurement, it kills innovation, in plywood we stopped thinking about yield 15 years ago” - Manager, Europe Sales orientationSales orientation Market orientationMarket orientation

5. Creating the “right” culture “The basis of developing innovativeness in the sawmill industry is that you don’t only maximize yield from the log. You have to clarify what the customer needs and produce those products that have demand.” – Europe“The basis of developing innovativeness in the sawmill industry is that you don’t only maximize yield from the log. You have to clarify what the customer needs and produce those products that have demand.” – Europe

6. Culture – resistance to change In the Market – “People are slow to adopt in this industry, lot of times it is a hand- me-down business, my daddy did it this way, my granddaddy did it that way, he built with 2x’s and I am going to build with 2x’s, this is the way to go.” – North AmericaIn the Market – “People are slow to adopt in this industry, lot of times it is a hand- me-down business, my daddy did it this way, my granddaddy did it that way, he built with 2x’s and I am going to build with 2x’s, this is the way to go.” – North America

7. Culture – resistance to change “…this culture is incredibly conservative in this industry, so very resistant to change.” – North America“…this culture is incredibly conservative in this industry, so very resistant to change.” – North America “I think this whole innovation thing or being innovative or not is something that people consider a bit apart from their everyday work or everyday duties and this is, of course, not the idea.” – Europe“I think this whole innovation thing or being innovative or not is something that people consider a bit apart from their everyday work or everyday duties and this is, of course, not the idea.” – Europe

8. 2013 Study w/Chemical Cos. “… the industry is quite conservative, so it is not so easy to bring in new technologies into this market.” – European Manager, chemicals“… the industry is quite conservative, so it is not so easy to bring in new technologies into this market.” – European Manager, chemicals “…this industry is quite conservative, so customers like to do business as they have done it for the past twenty years.” – US Manager, chemicals “…the majority of treaters are not going out there and trying to find new and different, and asking us if we can do it. They sit back and answer the telephone and take orders.” – US Manager, chemicals Nybakk et al. 2014

9. Paths to innovation/creativity 1.Observe 2.Experience 3.Inquire 4.Network Wright 2014

10. 1) Observation Google Images

11. We see as we are conditioned to see OccupationOccupation AgeAge GenderGender ReligionReligion Etc.Etc. Wright 2014

12. 1) Observation Adaptive behaviorsAdaptive behaviors Bug lists - “Once you start observing carefully, all kinds of insights and opportunities can open up.” – Kelley 2000Bug lists - “Once you start observing carefully, all kinds of insights and opportunities can open up.” – Kelley 2000

13. 2) Experience Those who have lived in 2+ countries and worked in 2+ industries are twice as likely to innovateThose who have lived in 2+ countries and worked in 2+ industries are twice as likely to innovate Wright 2014

14. 3) Inquire Ask “why” even if you already know the answerAsk “why” even if you already know the answer Question to understand current uses or challengesQuestion to understand current uses or challenges Wright 2014

15. 4) Network Team reflexivity Wright 2014 Google Images

16. Factors for and barriers to innovation The Economist Intelligence Unit report

17. Questions around innovation Too much of a good thing effect?Too much of a good thing effect? Pathways in a globalized world?Pathways in a globalized world? Separation-integration theses?Separation-integration theses? Institutionalize an R&D investment strategy or a piecemeal approach?Institutionalize an R&D investment strategy or a piecemeal approach?

18. Impacts of the Recession

19. Dillard Stud Mill Largest stud mill in US (capacity 450 million feet)Largest stud mill in US (capacity 450 million feet) Great Recession drives changeGreat Recession drives change –Opened mentality to value-added (being adaptive) –Customer focus –Employee driven –Toyota modeled – heavy reliance on lean –Heavy influence on capital decisions –New relationship between sales and production Weekly NP discussions Information and examples provided by Tony Flagor

20. Innovativeness  Performance Product innovativeness – NOProduct innovativeness – NO Process & business systems innovativeness – YES (marginal effect)Process & business systems innovativeness – YES (marginal effect)

21. FP Industry is not the only wrong-doer Companies generally suffer from inertia and complacence Innovation or resilience?