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Beyond Compliance: Creating and Executing Successful Strategies for DBE Participation and Workforce Diversity
Beyond Compliance:Beyond Compliance:
Creating and Executing Successful Strategies for DBE Participation and Workforce Diversity
Creating and Executing Successful Strategies for DBE Participation and Workforce Diversity
PanelistsPanelists
Brian McCarthy (Moderator)
– Program Management Consultant, CDM
Heyward Davenport
– Regional Director, Minority Business Development Agency
Michael Jefferson
– Diversity Manager, Metropolitan District of Hartford
Why beyond compliance?Why beyond compliance?
Stakeholders
Benefits
Benefits Drive StrategyBenefits Drive Strategy
Program Management Strategy
Risk Management
Benefits
Context – Large Public Works ProgramContext – Large Public Works Program
Context and experience comes from a large urban public works program for a mid-size city, primarily horizontal construction
Not a lot of existing local MBE & WBE capacity
Biggest program ever undertaken by owner
Voter approval required
Politics
Compliance FrameworkCompliance Framework
DBE (MBE/WBE) participation percentages as condition of funding or a legal requirement
EEO / Workforce Diversity
Set-Asides
Prevailing Wage
Project Labor Agreement
Leading off . . .Leading off . . .
The Owner’s Perspective
– Program Benefits
– Risk Management
– Managing expectations
– The importance of a coherent strategy
– Getting it done
Next up . . .Next up . . .
Resources to help you
– Leveraging programs and agencies
– How to engage their support
– What they can do
– What they can’t do
And then . . .And then . . .
Program management to support the strategy
– Leverage existing tools & processes
– Forecasting
– Tracking and Reporting
Owner’s StrategyOwner’s Strategy
Manage Benefits
Manage Risk
DBE Participation & Workforce Diversity in Context of Program Benefits & Risks
DBE Participation & Workforce Diversity in Context of Program Benefits & Risks
Public Agency
– High Visibility
– High Expectations for your Program
Vehicle for economic growth
Vehicle for economic opportunity
Public & Local Business Stakeholder View
– Program Benefits = jobs & business opportunity
DBE Participation & Workforce Diversity in Context of Program Benefits & Risks
DBE Participation & Workforce Diversity in Context of Program Benefits & Risks
Risks
– Adverse publicity
– Public protests
– Erosion of support for the program
– Non-compliance with funding & legal requirements
Compliance MindsetCompliance Mindset
Manage Risk of Non-Compliance
Risk = Participation Goals not met
Consequence = Lose funding
Risk Management Strategy Includes
– Solid Contract Terms
– “Good Faith Efforts”
– Tracking and Reporting
– Creating the Paper Trail
What’s missing?What’s missing?
Achieving, documenting, and reporting compliance may not deliver the program benefits expected by some stakeholders
From their view (right or wrong), you have not delivered
Why take a narrow approach?Why take a narrow approach?
It’s the way we’ve always done it
It’s worked for us before
Inexperience
See doing more as an unnecessary expense
Fear of engagement
Not part of organizational culture
Beyond ComplianceBeyond Compliance
Broader view of risks and benefits that are related to issues of DBE and workforce participation
You’re already doing a lot of the legwork to support taking these extra steps
Leverage work you’re already doing
Proactively manage expectations (benefits) and risk
StrategyStrategy
Manage expectations
Engage the local small contractors
Engage the general contractors
Engage external resources
Leverage existing tools & systems
Publicize your efforts and successes
Manage ExpectationsManage Expectations
City Plans $1.6B Sewer Upgrade08/19/2009The Daily Planet
Mayor John Doe told the crowd the project would create jobs, especially in the eastern part of the city, a promise he touted during his campaign.
Jobs will be available for "hundreds of people for construction above the ground and below."
Managing ExpectationsManaging Expectations
Realistic Jobs Forecasts
– Job Preservation Versus Job Creation
– Consistent Approach
Realistic Subcontracting Opportunities Forecasts
– Breakdown by trades
– When will opportunities happen?
Engaging the Local DBE SubcontractorsEngaging the Local DBE Subcontractors
Pursue them
Maintain a vendor database
Provide Educational Opportunities
– How to work with your agency
– How to work with general contractors
Develop relationships before there are problems
Engage the General ContractorsEngage the General Contractors
GC to Subcontractor matchmakers
Get off on the right foot – you take these issues seriously and will pay attention to them
Plug GC into local resources, if they are not from the area
Engaging External ResourcesEngaging External Resources
Government Agencies
– Minority Business Development Agency
– State Departments of Labor
– Small Business Administration
Other Organizations
– Community-based job training & placement programs
– Industry and trade organizations
Leverage Existing Tools and SystemsLeverage Existing Tools and Systems
Planning and design phase analysis
– Workload & opportunity forecasting
Contract Administration
– Payroll reports
– Progress Meetings
Internal & External Communication
Publicize your Efforts & SuccessPublicize your Efforts & Success
Be out in front
Prevent protests
Have good stories and evidence to fall back on
Anecdotes are effective
Strategy to Go Beyond ComplianceStrategy to Go Beyond Compliance
Manage expectations
Engage the local small contractors
Engage the general contractors
Engage external resources
Leverage existing tools & systems
Publicize your efforts and successes
Most of these organizations exist to help the small or minority business, or the individual worker. How can they help or support me, the program owner?
Most of these organizations exist to help the small or minority business, or the individual worker. How can they help or support me, the program owner?
What’s in it for the Program Owner?What’s in it for the Program Owner?
Expands your network
Adds credibility
Creates publicity
Builds local capacity
Doesn’t cost much
Proactively managing risk
What do they have to offer?What do they have to offer?
Training & education
Networking
Access to capital for subs/suppliers
Realistic advice
Coaching & mentoring
Certification assistance
OJT Funding
Risk Mitigation PayoffRisk Mitigation Payoff
Establishing relationships
Track record of support & fair play
“Problem children” get independent support
Good publicity
Reduce chance and severity of problems
About the MBDAAbout the MBDA
Minority Business Development Agency, part of the US Department of Commerce.
Created as an executive order in 1969 by President Richard M. Nixon, first known as the Office of Minority Business Enterprise.
Mission driven as an entrepreneurial organization; we actively promote job and business growth to enhance competitiveness for minority businesses of all sizes and industries; we are committed to wealth creation, teaming capabilities and cultivating opportunities in domestic & global markets.
MBDA regionsMBDA regions
…our 5 regional offices cover all states including Puerto Rico, too.
Enterprise CentersEnterprise Centers
The MBDA funds its network of Minority Business Enterprise Centers, Minority Business Opportunity Centers & Native American Business Enterprise Centers.
MBEC leverages business alliances with government agencies, financial institutions, procurement supply chain programs and corporate America. In the NYNEC: 8 Centers & 2 District offices.
MBEC assists the small business owner to cultivate business resources which are geared to serve minority entrepreneurs seeking to pursue accelerated growth.
MBDA’s Approach to Program OwnersMBDA’s Approach to Program Owners
Establishes a high profile partnership to demonstrate owner’s commitment and sincerity to local and MWBE contracting programs
Provides resources such as vendor outreach and strategic alliance with local resources
Co-sponsors and acts as primary event manager -including staffing and coordination - for project outreach events
Facilitates introductions to local technical assistance organizations and associations in such areas as certification, bonding, insurance and joint venture development.
A couple of recent examplesA couple of recent examples
In 2009, MBDA & local MBEC’s hosted a B2B Procurement matchmaker with 5 NY City Agencies who never worked together to identify 20 prime contractors who met 125 MBE vendors.
Significant outreach and partnering efforts in Hartford include B2B matchmakers and educational programs. MBE prime awarded one of largest contracts in agency’s history. MDC named Northeast regional Partner of the Year.
We want to helpWe want to help
www.mbda.gov
The MBEC’s, MBOC’s & NABEC’s are funded by the U.S. Department of Commerce as technical assistance centers
Program Management Tools to Support the StrategyProgram Management Tools to Support the Strategy
Use existing tools & processes to your advantage
– Forecasting subcontract opportunities and workforce requirements
– Extract useful information from standard data sources
– Tracking and Reporting
– Communication & Outreach
Planning and DesignPlanning and Design
ProcurementProcurement
Maintain & Use a Vendor Profile Database
Forecast upcoming work
Tack matchmakers on to pre-bid meetings
Use technology to push information
Construction AdministrationConstruction Administration
Maintain visibility
– Progress meetings
– Site Inspections
Mine data from daily reports
– Subs
– Crews
– Trades
Construction AdministrationConstruction Administration
Certified Payrolls
– Job classifications
– Ethnicity & Gender
– Residency
Tracking & ReportingTracking & Reporting
Education & OutreachEducation & Outreach
Many small firms have not played in your arena
Conduct seminars & workshops on how to do business
Reinforce expectations
Deliver consistent messages
SummarySummary
Focus on the program benefits to develop your strategy
It’s a contact sport – you’ve got to be visible
Engage stakeholders
Use you’re existing systems and tools
Don’t go it alone – partner up
Publicize your efforts and successes
Closing Thoughts on Strategy & Risk ManagementClosing Thoughts on Strategy & Risk Management
Benefit – from Latin benefactum (good deed) bene (well)
Risk – from French risque, Italian riscare (to run into danger) – ancestral meaning could be “sail dangerously close to rocks”
Manage – from Italian maneggiare (control a horse) fr Latin manus (hand)
Program Management is a contact sport!
Hands – on approaches will help keep you off the rocks!
Questions?Questions?
Brian McCarthy
– Program Management Consultant, CDM
Heyward Davenport
– Regional Director, Minority Business Development Agency
