Developing a Successful HUB Program

Developing a Successful HUB Program Presented By: Norma Barrera Texas Education Agency West Texas Business Summit 2013 Hosted By: Texas Tech University Lubbock, Texas

Agenda

Developing a Successful HUB Program 1 Commitment Leadership ✓ 3 2 4 5 Best Practices Establish Goals 6 7 Set Metrics and Check Monthly Education Matchmaking 3

Agenda

Developing a Successful HUB Program 8 Mentor Protégé Teams 9 Certification 10 11 ✓ 12 nd rd EOFs / HUB Forums Reporting 2 nd & 3 rd Tier Challenges

1. Commitment • Support from the top • Adopt a “HUB Business Policy” • Acceptance of the program starts with you • Without visible support most programs are stagnant

2. Leadership • HUB Coordinator needs strong organizational & communication skills • Understand the agency’s procurements • Liaison between buyers, HUBs, and prime vendors • Coach and mentor all three groups

3. Best Practices Definition – Methods that consistently indicate results are superior or in process of being superior. • Add a HUB section on your website • Talk with other HUB Coordinators • CPA HUB Rules

4. Establish Goals • Research your HUB Report • Select the categories you want to improve • Identify your goals for key areas and set a time period to accomplish • Track improvement

5. Set Metrics • Track metrics – revise policies, enhance the level of outreach efforts or increase % • Track expenditures by contract, departments, or cost centers • Check in with senior management on the status

6. Education • Increasing involvement within your organization is key to your HUB Program • Get buyers involved so they can develop relationships and help create ways to partner with HUBs • Promote success stories internally & at your forums

HUB & Procurement Teams = 1 The Buyers are vital in the process, they get to know the HUBs and provide them key information about your agency’s or university’s procurements. The Buyers will have a better understanding of the HUBs capabilities, products and services .

7. Matchmaking • Help Primes identify HUB firms • Help HUBs identify Primes • Set up Specialized Forums • Procurement Roundtables • Keep in Communication with the Groups

Relationships Agency Prime Subcontractors 1.

2.

3.

4.

5.

Leadership starts at the agency / university.

Commitment is within all the groups In the Decision Making process it is important to consider all possible solutions that is how you run your HUB Program.

Minority firms can offer new opportunities and fresh perspective in the procurement. Primes shouldn’t limit themselves to few options, they should perform due diligence and explore many choices.

8. Mentor Protégé Teams • HUBs are small businesses and some primes may overlook their ability to add value • Primes can help HUBs meet their own contracting standards • Be involved in the meetings

9. Certification • Research the lists of current subcontractors • Many companies may qualify as a HUB but have not taken the steps to become certified • You may be able to increase HUB % by simply assisting them to get certified

10. EOF / HUB Forums • Your database & other tools provide a good summary, but you must be actively engaged for improvement and in seeking HUBs in your procurements • Host a procurement conference for buyers and suppliers to interface • Host a meet the “Prime”

Networking

Reach out to other HUB Coordinators Learn about strategies that are effective Survey the buyers, HUBs, primes Use testimonials at your Forums. Promote success stories. Have you helped a HUB to grow and expand? Did a HUB win a contract? Which buyer had the most % of HUBs in a contract that month.

Highlight Mentor Protégé teams.

11. Reporting 2 nd & 3 rd Tier • A

tier 1

vendor is the entity you contracted with to provide the goods/services = Prime • A

tier 2

vendor is the entity that provides a good/service to the Prime in relation to your contract = Subcontractor • A

tier 3

vendor is the entity that provides a good/service to the Subcontractor • Report thru the PAR

11. Reporting 2 nd & 3 rd Tier • Direct-spend 2 nd /3 rd tier purchasing refers to those products and services that can be identified in support of the customer’s requirements.

• Indirect-spend 2 nd /3rd tier purchasing refers to those products and services that cannot be identified in support of the customer’s requirements.

Progress Chart – Keep it Visible

HUB Goal $1M Sept $4M March $6.8M

August

12. Challenges • Commitment (lack of) • Time • Acceptance • Progress is slow • HARD WORK

A Successful HUB Program Saves Money Creates Jobs Attracts Vendors

Overview

Improving Your HUB Program ✓ 1 ✓ 2 ✓ 3 ✓ 4 ✓ 5 ✓ 6 ✓ 7 Commitment Leadership Best Practices Establish Goals Set Metrics and Check Monthly Education Matchmaking

Overview

Your Improving Your HUB Program ✓ 8 ✓ 9 ✓ 10 ✓ 11 ✓ 12 Mentor – Protégé Teams Certification EOFs / HUB Forums Reporting 2 nd & 3 rd Tier Challenges

Closing

•

Educate your agency / university -Engage the procurement team & prime vendors

 Get buy-in •

Analyze your HUB Report -Set goals & metrics with a fresh set of eyes

 Publish results Your own footer

THANK YOU

• The information provided will help Develop a Successful HUB Program or • Provide ideas to improve your current HUB Program

THANK YOU!

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