Transcript Slide 1

Beyond Compliance:
Reinventing Our Small
Business Programs
DoDWRC
J.G. Schalin
San Diego PTAC
29 August 2008
© San Diego Contracting Opportunities Center
Objectives
1. Discuss: Supplier Diversity vs. Small
Business Program
2. Benefits of Supplier Diversity Programs
3. Case examples
4. Best Practices to Increase Supplier Diversity
5. Challenge to Change
© San Diego Contracting Opportunities Center
References:
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Supplier Diversity Program Maturity: At What Stage is Your Initiative? July 2004,
Ronald S. Washington
How to Maximize Your Company’s Supplier Diversity Efforts, June 2002, Betsy
L. Helgager
The Evolving Case for Supplier Diversity, undated, Raj Sharma
Supplier Diversity Doesn’t Cost More, August 24, 2006, Sarah Johnson,
CFO.com
Supplier Diversity, October 3, 2007, John McCosh, from Celebrating Diversity
Supplier Diversity Does Not Drive Increased Costs, August 17, 2006, The
Hackett Group
How to Build a Strong, Well Developed Supplier Diversity Program, May 2006, A.
Terrill, American Honda
Supplier Diversity and Supply Chain Management: A Strategic Approach, MayJune 2007, Business Horizons, Henry Adobor
Using Supplier Diversity to Achieve Business Goals, May 2005, Patricia J.
Richards, Shell Oil
Supplier Diversity: A Business Imperative, St. Louis Minority Business Council
Good Business: Making Your Supplier Diversity Program Work, undated, Inside
Indiana Business, Sandra Leek of Counsel, Baker & Daniels LLP
© San Diego Contracting Opportunities Center
Mental Health Warm-Ups
• Artificial intelligence is no match for natural stupidity.
• No man has ever been shot by his wife while doing the dishes.
• If you must choose between two evils, pick the one you've never
tried before.
• Experience is a wonderful thing. It enables you to recognize a
mistake when you make it again.
• Middle age is when broadness of the mind and narrowness of the
waist change places.
• A balanced diet is a cookie in each hand.
• Junk is something you've kept for years and throw away three
weeks before you need it.
• By the time you can make ends meet, they move the ends.
• Bills travel through the mail at twice the speed of checks.
• Opportunities always look bigger going than coming.
• For every action, there is an equal and opposite government
program.
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You Are Special!
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Administratively Competent
Assertive?
Dedicated
Detail Oriented
Hard-Working
Knowledgeable
Marketeer?
Passionate about Small Business
Personable
Well-Liked in the Organization
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Survey
Small Business Office Professional Staff Survey
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Completely Anonymous
Identify Trends and Common Elements
Results Available to DoDWRC Members
A Tool in Enhancing Organizational Support
5 Minutes
© San Diego Contracting Opportunities Center
Small Business Program:
Possible Definition:
• A compliance oriented program dictated by
government regulations designed to show good
faith effort with expenditure of the least
resources possible.
• The Program is separate and independent from
the real goals and true objectives of the
organization, therefore poor results can be
justified without significant consequence.
© San Diego Contracting Opportunities Center
What are some…
…attributes of a traditional or
typical program?
*Ronald S. Washington
© San Diego Contracting Opportunities Center
Attributes of Small Business Programs
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Procurement Oriented
Stand-Alone
Token Support
Ineffectively Resourced
Compliance Driven
Under-Staffed
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Supplier Diversity Program:
Possible Definition:
• A proactive business process that seeks to create value
in the supply chain by adding and developing a diverse
blend of small businesses into the supply chain.
• The Program directly contributes towards organizational
success and is a fully integrated component needed to
achieve the organization’s goals and objectives.
• The organization views the Program as vital to its
operations and therefore fully resources and supports it.
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What are some…
…attributes of a strong (Stage III)*
supplier diversity program?
*Ronald S. Washington
© San Diego Contracting Opportunities Center
Attributes of Supplier Diversity
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Reduced Procurement Costs
Supplier More Focused on Your Contract
Better Delivery Schedule
Improved Quality
Innovative & Creative Problem Solving
More Responsive to Changes
Improved Image or Reputation
Expanded Sourcing
Singularity of Organizational Purpose
Better Staff Morale
Supplier Flexibility
Social Responsibility
© San Diego Contracting Opportunities Center
Business Cases
• Reduced Costs: Lucent saved $82.8 M
• Expanded Sourcing: Raytheon ILS
encouraged cooperation of SDB Sources
• Problem Solving: Lockheed Martin
achieved higher levels of performance
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Tips for Touting Your Program Successes
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Measure and Report
Do it Often
Make it Part of Your Organizational Identity
Intrigue Your Target Audience
Use Every Means to Tell Your Story
» Adapted from B.L. Helgager, BLH Consulting
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Recommendations for Best Practices
• Include Supplier Diversity in Performance
Reviews
• Web Based Portal for All SD Resources
• Flow Down Philosophy to Second Tier
• Well Defined Mentor-Protégé Projects
• Cross Organizational Awareness
• Active Outreach and Involvement
» Adapted from P.J. Richards
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Other Recommendations
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Engage Senior Management
Empower the Supply Chain Management Staff
Establish an Committee of Stakeholders
Elevate Your Mentor-Protégé Program
Enhance Your Goals
Ensure Progress – Measure
Exit the Office - Outreach
» Adapted from S. Leek
© San Diego Contracting Opportunities Center
Action Steps & Your Questions
• I can ……..
• I will …….
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1. Do you represent the Government, a Prime Contractor or Other?
Circle One
2. Your position is most generally called: SBLO; or Small Business Specialist; or
Deputy for Small
Business. Circle One or list if other ________________________
3. Is the position above your primary duty? Yes or No
Circle One
4. If no, what is your primary responsibility? ________________________
5. How many positions are authorized in your Small Business Office? # ______
6. How many positions are filled in your Small Business Office?
# ______
7. Aside from staffing costs for your small business position, what is your approximate budget for:
a. Professional Development
$_______
b. Outreach & Events
$_______
c. Discretionary (Marketing, etc.) $_______
8. Do you feel that your small business budget adequately supports your program?
Yes-completely; Yes-for the most part; No-but partially; No-not at all;
Circle One
9. How did you arrive at your position?
Was forced into it; Tried to Avoid it; Achieved a career goal; Just fell into it;
Circle One
10. Generally, before being placed into my first small business position, my background was in: Purchasing;
Contracting; Administration; Management;
Circle One
11. As a small business office professional, I feel that my greatest contribution to my organization is: Circle the 5
that best fit your situation and rank them 1-5, with 1 being greatest.
a. Collecting Data
b. Reporting Data Accurately
c. Introducing Potential New Suppliers to the Organization
d. Improving eSRS Performance
e. Enhancing my Organization’s Public Image
f. Improving my Organization’s Bottom Line
g. Improving the Quality of my Organization’s Product or Service
h. Improving Delivery Schedule of my Organization’s Suppliers
i. Reducing the Cost of my Organization’s Operations
j. Bring New Ideas into the Organization
k. Attending Conferences
l. “Protecting” Other Staff Members for Small Business Inquiries
12. Have I been given adequate time and support to do a superior job? Yes; No;
Circle One