The global chemicals industry provides a steady stream of new products and innovative technologies, enhancing quality of life and helping sustain scarce resources. On average, however, industry participants have failed to deliver the financial performance that today's capital markets expect, suggesting the need to change the way they operate. Other fundamental driving forces – including social/environmental, macroeconomic/political, market dynamics, and technical developments – are adding to the pressure for change. In response, chemical firms will need to transform themselves, rethinking the way they create value for their customers and focusing on core competencies and core activities.