Strategic Plan

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This 2010 Strategic Plan for the Composite Panel Association (CPA), when implemented in an effective fashion and if revised on a timely basis, will ensure that the CPA remains well prepared and highly focused to address the challenges and opportunities that its members and the industry will face over the next three year planning horizon. As a result, CPA’s ability to serve members and to represent their interests in a superior manner should be sustained.

1. Constancy of Change

CPA, to be an effective trade association, must ensure that its member representation and service functions are designed with the opportunities and challenges that accompany ongoing change. The following issues and trends identify major drivers of the changing environment faced by the industry, members, and CPA over the next three years. These items illustrate the view that the only constant faced by CPA, the industry, and members is the constancy of change itself.

n Overall domestic and world economic uncertainty over the next 3 years.

n Relatively weak market demand for many products produced by CPA members.

n Global competitive, economic, and trade policy impacts on the competitive position of North American producers.

n Ongoing governmental policy initiatives in areas like BCAP, formaldehyde, and other areas affecting compliance requirements and costs.

n Gaining global acceptance of certifications-standards like FSC and SFI.

n Positioning, branding, and promoting industry products in an environmentally friendly or green manner.

n Achieving recognition of industry product benefits in functionality, cost-value relationship, and aesthetics among architects, builders, specifiers, etc.

n Managing the emergence of social marketing processes that can affect how customers and consumers learn about the industry’s products.

n Addressing threats to member firms profitability and survivability as cost pressures and modest demand occur.

n Potential for additional waves of consolidation in the North American composite panel industry.

n Attracting new human resource talent to the industry at the executive and technical levels.

Within the framework of changing external and industry conditions defined by the preceding factors, CPA must continue to address or manage a variety of membership and organizational issues. In other words, CPA must have the capacity to identify and fulfill the benefit expectations of members and produce a significant ROI for members’ investments in the Association.

n Balancing CPA’s strong governmental relations focus with other “value added” initiatives to fulfill members’ expectations.

n Reinvigorating CPA meetings as vehicles for networking and relationship building and content delivery.

n Utilizing technology to reach members with timely, accessible and meaningful information.

n Building composite panel product acceptance in key and targeted markets of opportunity.

n Continuing to promote and develop CPA’s testing and certification services.

n Maintaining strong levels of member engagement and participation in CPA.

n Generating dues and non-dues income sufficient to fund CPA’s capacity to produce superior outcomes for the industry and members.

n Managing staff continuity and succession planning strategies in a timely manner.

Based upon discussion of the preceding items, the following CPA volunteer leaders and professional staff contributed to the 2010 Strategic Plan presented in the following sections of this report. This Strategic Plan is expected to guide CPA’s activities over the 2010 to 2012 planning horizon following additional developmental steps during this year.

Strategic Plan Contributors

Volunteer Leaders

Emilio Ayub                                                  Darrell Keeling

Mike Blosser                                                Wade Mosby

Louis Brassard                                             T. J. Rosengarth

Pierre-Yves Couture                                     Kelly Shotbolt

Guenter Heyen                                            Jim Skinner

James Hogg                                                 Bjorn Wahl

Professional Staff and Counsel

Donald Bisson                                              Gary Heroux

John Bradfield                                             Brock Landry

Jeannie Ervin                                              Tom Julia

Also interviewed in preparation for the March 29-31, 2010, planning session but unable to attend were Dave Leding, Elliott Savage, Will Warberg, Roy Wheaton and Bryan Wilson.

2. Rationale for the Strategic Plan

It was clear to all Strategic Plan contributors – based upon their assessment of the opportunities and challenges highlighted previously and through their in-depth assessment of findings generated in the 2010 CPA membership survey – that the Association’s value proposition for the industry and members is driven by three sets of initiatives. However, there was no question in the view of all contributors that CPA’s core value or paramount priorities must be anchored in two areas: (1) Public Policy Advocacy and (2) Product Marketplace Acceptance. In this sense, Public Policy Advocacy will enable CPA, on behalf of the industry, to “protect” itself from unwarranted governmental intervention. Gaining greater Product Marketplace Acceptance will enable CPA to support the effective “promotion” of industry products to targeted markets. At this point in time and over the next 3 years, Strategic Plan contributors feel these two areas represent the clear and compelling priorities for CPA.

The Tier 2 Priorities and Supporting Priorities are areas that CPA should “maintain” but not emphasize over the next 3 years. Where possible, human and financial resources committed to the Tier 2 and Supporting Priorities should be minimized and used only to preserve the essential elements of these Priorities. Further, implementation efforts within the Tier 2 and Supporting Priorities should be aligned with or positioned to support the two Tier 1 Priorities.

CPA’s Value Equation Priorities

1.     Tier 1 Priorities

n      Public Policy Advocacy

n      Product Marketplace Acceptance

2.     Tier 2 Priorities

n      Industry Competitiveness

n      Education and Standards

3.     Supporting Priorities

n      Networking-Relationship Building

n      Testing and Certification Services

3. Strategic Plan Focus

The following elements define the central focus and intent of the 2010 Strategic Plan based upon conclusions given in Sections 1 and 2.

n Contributors made only minor revisions in the Definitions, Culture and Values Statement, and Mission Statement. These changes streamlined, refined, and updated the intent of items given in Sections 3.1, 3.2, and 3.3.

n Contributors refined the Industry Competitiveness Goal by referencing “sustainability” in the Goal statement given in Section 3.4.

n Contributors created a new CPA Goal in Section 2.4 by inserting Product Promotion into the Strategic Plan.

n All CPA Goals were placed in an overall order of priority since Public Policy and Product Promotion were regarded as CPA’s two value proposition priorities over the next few years.

3.1 Definitions: CPA’s Industry and Product Base

n “Composite Panel Industry” includes those North American companies involved in the manufacture, conversion, and distribution of composite panel and value-added products.

n “Composite Panel Products” are engineered and manufactured from wood, agricultural and other resources for industrial, architectural, construction and consumer applications.

3.2 Culture and Values Statement: CPA’s Approach

CPA values and encourages the principles of integrity, commitment, and sharing to achieve consensus-based industry goals and the fulfillment of membership expectations.

3.3 Mission Statement: CPA’s Reason For Being

CPA strengthens the competitiveness of the North American composite panel industry.

3.4 Goals: CPA’s Highest Priority Purposes

1. Public Policy: Advocate the alignment of public policy with industry objectives.

2. Product Promotion: Promote the increased use and positive perception of industry products.

3. Industry Competitiveness: Promote industry competitiveness and sustainability in the global market.

4. Member Benefits: Provide benefits that attract, engage and retain members.

4. Strategic Plan Strategies

The following items are Master Strategies for each of CPA’s Goals. As used here, Master Strategies help to identify “what” CPA should do to pursue a Goal. This function enables CPA’s volunteer and staff leadership to further define the intent of each Goal and to establish a framework for the development of tactics.

1. Public Policy. Advocate the alignment of public policy with industry objectives.

Master Strategies

1.1 Ensure that industry advocacy promotes a positive business environment and long-term industry viability.

1.2 Develop and advocate for responsible industry positions based on sound scientific and economic foundations.

1.3 Develop and advocate for product standards and specifications that ensure product efficacy with appropriate consideration of product cost.

1.4 Develop and advocate for plant environmental regulations that protect the environment with appropriate consideration of product cost.

1.5 Develop and advocate for workplace regulations that achieve employee safety with appropriate consideration of product cost.

1.6 Facilitate the effective involvement of members and allies in industry advocacy

1.7 Enhance CPA’s ability to identify and monitor public policy challenges and opportunities.

2. Product Promotion. Promote the increased use and positive perception of industry products

Master Strategies

2.1 Further capitalize on current CPA efforts to enhance perceptions of industry’s products (e.g., CEU Program, Surface & Panel magazine content, trade show participation, speaking engagements, enhanced web presence, etc.).

2.2 Complete development of a comprehensive marketing communications plan to increase use of members’ products in consumer and industrial markets over the intermediate and long-term.

2.2.1 Some overall aspects of the Product Promotion Plan should include:

a. Establish clear-cut objectives to be accomplished over the short, intermediate, and long term.

b. Prioritize markets and audiences to be addressed by CPA and/or member promotional efforts.

c. Identify current usage patterns and perceptions of the industry’s products in priority markets.

d. Develop strategies to increase usage in high potential yield segments and to close gaps or inaccurate perceptions.

e. Identify and apply association “best practices” in marketing communications efforts.

f. Identify roles and responsibilities of CPA and members in the promotion of industry products.

2.2.2 Some specific Product Promotion Plan tactics could include:

a. Promote the unique and desirable attributes of composite panel products.

b. Emphasize the “environmentally friendly” aspect of the industry’s products.

c. Leverage formaldehyde advocacy to promote product acceptance.

d. Encourage new product research and applications.

e. Achieve “preferred product status” in public and private sectors.

f. Educate targeted audiences about technical performance and design attributes.

g. Promote service and logistical advantages of North American products.

2.2.3 Select and use traditional and “new” media to deliver CPA promotional campaign themes and messages.

2.2.4 Identify budgetary and other resource requirements to implement the Plan over the short- and long-term.

2.2.5 Identify performance metrics and measures.

3. Industry Competitiveness. Promote industry competitiveness and sustainability in the global market.

Master Strategies

3.1 Support a business and regulatory environment that promotes the “on-shoring” of consuming industries.

3.2 Collect and disseminate data to enable North American producers to benchmark themselves against foreign-made and alternative products.

3.3 Collect on key industry characteristics-capabilities, economic impacts, and other key factors that define the global competitive position of the North American composite panel industry.

3.4 Advocate for international standards that benefit the North American industry.

3.5 Promote “fair trade” policies favorable to the North American industry.

4. Member Benefits. Provide benefits that attract, engage, and retain members.

Master Strategies

4.1 Provide relevant, accurate, and timely industry performance statistics.

4.2 Provide credible, third-party certification and testing programs for industry products.

4.3 Provide relevant education, training, and networking opportunities for members and other stakeholders.

4.4 Develop and participate in alliances to advocate for the interests of the industry.

4.5 Ensure that CPA’s membership represents the full spectrum of North American composite panel industry stakeholders.

4.6 Support industry efforts and develop programs to improve workplace safety.

4.7 Communicate important industry and Association information to members.

4.8 Develop and support volunteer leadership and participation.

4.9 Enhance Association effectiveness by providing the resources necessary to assure a high-quality professional staff.

4.10 Regularly assess the value members receive from the Association.

5. Implementation Processes

Previous sections of the 2010 Strategic Plan have clearly indicated that CPA’s primary focus for the next three years must be on the two following priorities:

n Public Policy: Advocate the alignment of public policy with industry objectives.

n Product Promotion: Promote the increased use and positive perception of industry products.

Strategic Plan contributors stressed the critical nature of these priorities and the urgency of addressing them effectively to influence the future success of the North American industry. The following is the overall implementation process CPA will pursue to ensure that these priorities become operational:

5.1 Effectively communicate CPA’s two major priorities to gain recognition and achieve support among the membership.

5.2 Align CPA’s programs/services, Committee structure, and staff resources in support of the strategic priorities.

a. Identify areas of current alignment for continuing emphasis.

b. Identify areas where realignment is necessary to support the priorities.

c. Identify areas for de-emphasis or abandonment because of non-alignment with the priorities.

5.3 Optimize resources dedicated to each strategic priority and identify current and prospective sources.

5.4 Determine budgetary and human resource requirements to successfully achieve CPA’s priorities.

5.5 Establish and implement processes to measure CPA’s success in achieving its priorities.

The following is recommended as an implementation approach and timetable, applying the model used successfully in previous CPA strategic planning activities.

§ April 2010 – Strategic Plan distributed to CPA Board of Directors

and members.

§ May 2010 – Strategic Plan presented at 2010 Spring Meeting and

considered by Board of Directors. Board adopts Strategic Plan as presented or amended, and shares it with general membership, including the following implementation activities and timetable.

§ May 2010 – Board of Directors appoints a Marketing and

Communications Task Group (MCTG) co-chaired by [TBD] and including members with expertise in marketing and communications plans. Primary focus: develop a comprehensive marketing communications plan and relevant committee structure consistent with the objectives enumerated in the Strategic Plan. Board of Directors also appoints a Structure and Resources Task Group (SRTG) co-chaired by [TBD] and including members of the Board familiar with association committee structure, staff expertise, revenue and expenses. Primary focus: identify how to refine and enhance the overall current committee structure, staff assets, outside counsel, member resources, and dues and other revenue to better serve the objectives enumerated in the Strategic Plan.

§ May through August 2010 – Deliberations of MCTG and SRTG

§ September 2010 – Recommendations of MCTG and SRTG

presented at 2010 Fall Meeting and considered by Board of Directors. Board adopts implementation plan as presented or amended, and shares it with general membership. Board also adopts 2011 Budget and Work Plan.

Approved by the CPA Board of Directors on May 4, 2010