Objectives

1. Beyond Compliance: Reinventing Our Small Business ProgramsDoDWRCJ.G. SchalinSan Diego PTAC29 August 2008

2. Objectives • Discuss: Supplier Diversity vs. Small Business Program • Benefits of Supplier Diversity Programs • Case examples • Best Practices to Increase Supplier Diversity • Challenge to Change

4. References: • 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, May-June 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

5. 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.

6. You Are Special! • Administratively Competent • Assertive? • Dedicated • Detail Oriented • Hard-Working • Knowledgeable • Marketeer? • Passionate about Small Business • Personable • Well-Liked in the Organization

7. Survey Small Business Office Professional Staff Survey • Completely Anonymous • Identify Trends and Common Elements • Results Available to DoDWRC Members • A Tool in Enhancing Organizational Support • 5 Minutes

8. 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.

9. What are some… …attributes of a traditional or typical program? *Ronald S. Washington

10. Attributes of Small Business Programs • Procurement Oriented • Stand-Alone • Token Support • Ineffectively Resourced • Compliance Driven • Under-Staffed

11. 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.

14. What are some… …attributes of a strong (Stage III)* supplier diversity program? *Ronald S. Washington

15. Attributes of Supplier Diversity • 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

16. 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

17. Tips for Touting Your Program Successes • 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

18. 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

19. Other Recommendations • 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

20. Action Steps & Your Questions • I can …….. • I will …….

21. Small Business Office Professional Staff Survey 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