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Centers of Excellence

A Business Module Approach

Centers of ExcellenceDefinition

Centers of Excellence are Regional Business Modules that serve to

enhance Corporate minority business development through knowledge

sharing and excellence in implementing NMSDC best practices.

NMSDC COE Business Module Defined• A program for corporations which seek to strengthen/launch their minority supplier development

activities

• The COE is composed of a network of regional groups of 8-10 corporations called “business modules” that have committed to significantly increase procurement from minority firms by implementing minority business development best practices from the National Minority Supplier Development Council, Inc.®

• Each business module recruits 16-20 MBEs that match forecasted needs

• Corporations agree to mentor MBEs by providing access to internal corporate resources

• Business Module cycle is 18-24 months in duration

• Registration fee for corporations

• Participation does not guarantee an MBE a contract

Capacity Building ActivityCapacity Building Activity

Best PracticesBest Practices

ModuleModuleLeaderLeader

CorporationCorporation

MBEsMBEs MBEsMBEs

BuyingBuyingEntitiesEntities

BuyingBuyingEntitiesEntities

Regional Business ModuleRegional Business Module

NMSDCCenters of Excellence

Regional Business ModuleRegional Business Module

Regional Business ModuleRegional Business Module

Best PracticePerformance Data

MEETING RULES OF CONDUCT

• Respect, Courtesy, and Professionalism must be Observed

• Share Responsibility• Criticize Only Ideas Not People• Question & Participate (when appropriate)• Attend All Meetings• Be On Time to Meetings• Complete Assignments On Time• Listen Constructively

COE Benefits• Enhance Corporation’s minority business development

process– Through structured environment, drive use of NMSDC best

practices– Enhance understanding within the firm to support resource

needs

• Provides increased business opportunities for both Corporate members and MBEs through learning from each other’s competitive strengths

• MBEs obtain an “insider’s perspective” on ways to conduct business with the Corporate Module members

• Expand impact of NMSDC and Regional Council network by advancing minority business development excellence

COE Methodology

• Identify opportunities• Nominate MBEs based on forecast of

opportunities• Want at least two corporations with same

opportunity• Corporation can identify MBE and be integral

part of their growth• Lower risk by using NMSDC certified MBEs• Self assessments

COE Corporate Member Responsibilities

• Designate a manager responsible for the execution and goals of this initiative

• Committed, active participation for at least 24 months• Offer technical and mentoring assistance in at least one

developmental area, such as legal, HR, engineering, quality, technical and management training

• Establish a Supplier Diversity process which includes NMSDC Best Practices

• Establish goals to increase the purchases with minority suppliers

• Provide forecasts of purchasing requirements

COE Corporate Member Responsibilities(cont’d)

• Identify business opportunities that accelerate minority business development, e.g., – Direct sourcing– Minority supplier merger/acquisitions of majority firms or spinoffs– Consolidation of tactical suppliers under lead minority supplier– Outsourcing of non-core or core operations to minority suppliers– Minority supplier joint ventures/strategic alliances

• Include MBE Module participants in all bidding opportunities where they can be reasonably expected to have the capability of providing the required products and services

Capacity Building Definition(Used in NMSDC Centers of Excellence Program)

Developing an organization’s skills and capabilities, such as, leadership, finance, quality, management, technology, and providing access to information and knowledge, in order to build the organization’s effectiveness and sustainability

Capacity Building ExamplesEach corporate business module participant will offer capacity

building in at least one developmental area

Examples of Capacity Building Developmental Activities

•Quality Training

•Executive Education

•Proposal/RFX Development

•Financial Assistance

•Bonding Support

•Business Planning

•HR Management

•Project Management

•Strategic Selling

•Technical Assistance•Engineering•R & D•Technology Transfer

•Partnerships/Strategic Alliances/JVs

•Branding

COE MBE Responsibilities

• Certification by NMSDC Regional Council• CEO commits to attend all meetings• Provide information necessary for the Corporate Module

Members to assess their capability • Fully evaluate the suggestions and assistance provided

by the Corporate Module Members• MBE’s CFO or other executive personnel may be

requested to attend specific module activities• Make every effort to meet or exceed the needs, both

short- and long-term, of the Corporate Module Members in areas of quality, delivery and pricing

• Participation in COE does not guarantee an MBE a contract

COE Council Responsibilities

• National Council– Plan COE vision, strategies, and goals to achieve desired

outcomes– Develop policies and procedures of COE– Establish regional business modules– Provide technical assistance and central repository– Ensure consistent deployment and issues resolution– Share learnings to update programs and services of NMSDC for

mutual benefit• Regional Council

– Act as Host or facilitate securing meeting location(s)– Record and distribute proceedings of Module Meetings– Recommend pool of MBEs with qualifications to participate in

Module– Consult regularly with NMSDC Centers of Excellence manager

regarding progress of ongoing Module activities

COE Module Leader Responsibilities

• Implement policies and procedures of COE• Coordinate meeting schedule and lead meetings• Facilitate discussion during module meetings• Support module activities and manage accountability of

the group• Collect and record results (financial and non-financial) of

module• Serve as liaison to review progress and issues with

NMSDC Centers of Excellence manager

NMSDC BEST PRACTICES

1. Establish Corporate Policy and Top Corporate Management Support

2. Develop a Corporate Minority Supplier Development Plan

3. Establish Comprehensive Internal and External Communications

4. Identify Opportunities for MBEs in Strategic Sourcing and Supply Chain Management

5. Establish Comprehensive Minority Supplier Development Process

6. Establish Tracking, Reporting, and Goal Setting Mechanisms

7. Establish a Continuous Improvement Plan8. Establish a Second Tier Program

Measures of Success-Ralph G. Moore & Associates (RGMA) Scale: Corporate

Program Director

Communications Plan

Measurement of revenue contribution

Mission critical joint ventures and strategic alliances

Senior Management Leadership

Tied to performance Objectives company-wide

A “contact person” to answer phone calls

No Tracking System

No Materials

No Trade Fairs

No Budget

No Outreach

Level 4Advanced Process

Level 2Basic Program

Level 1Beginning Program

Level 3Traditional Program

Level 5World Class

Process

Part-time diversity business coordinator

Program Brochure

Subcontracting Plans

Limited Trade Fair Participation

Compliance Driven

No Ownership

Visible Program Manager

Some Program Collateral Materials

Limited Program Tracking

Local/National Diversity Business Organization Memberships

Little Senior Management Involvement

Outside Core Strategy

Program Director

Internal and External Identity Packages

Measurement by business unit

Diverse Vendors company-wide

Involved Senior Management

Tied to Procurement Objectives

Infr

astr

uctu

re E

lem

ents

Module Activity Moves Supplier Diversity Processes Forward

Measures of Success-Ralph G. Moore & Associates (RGMA) Scale: MBE

Growth Strategy

Leadership

Marketing & Sales

Customer Knowledge

Customer Service

Technology

World-ClassBusiness Partner

TraditionalSupplier

FunctionalArea

AdvancedSuppliers

Customer by Customer

President, department managers

President is top salesman supported by sales staff. Marketing strategy consists of generic website and standard brochure

Limited

President, staff respond to customer needs

Local Area Network, website. Behind in customer technology implementation plan

Develops long-term customer relationships

CEO and Management Team

Sales VP leads sales team. Advanced website

Works with customer to solve supply chain problems

Customer Service Team

LAN, EDI and able to respond quickly to RFQs

Acquisitions, JVs and strategic alliances. Researches industry trends;

CEO, business unit presidents and board of directors

Sales VP; Internal and External Identity Packages; On-line sales

Understand industry solutions

Resident Representative at Customer Site

CIO, custom applications e-commerce ready

Infr

astr

uctu

re E

lem

ents

Module Activity Moves Supplier Diversity Processes Forward

Growth & Development

General Business Acumen

Professionalism

How to Approach Fortune 500 Corporations The Do’s and Don’ts Strategy Planning Your “Value Add” Research

Networking Leadership Presentations Business etiquette & behavior

The Right Ad

The Right Media Mission Branding Marketing,

Advertising,

Public Relations, Collateral

Material and Related Needs

MarketingAdvertising The Process:

Prospecting approach, pitch, close, follow up

The 2 Minute Pitch Know your Audience

and your audience’s customers

Scope

Mentoring Relationships cover one or more of the following components:

Growth & Development

Technology &

Technical Services

Human Resources &

Risk Management

Globalization

Finance,

Purchasing & Operations

Alliances, Partnering, JVs Doing business abroad Scalability Capacity Building Methods

Business Plan Financial Acumen Mergers/Acquisitions

Personnel Management

and Policies Risk Management Building Leases, etc. Legal, insurance and other

related professional areas

Systems and Servers Reverse Auctions Technology,

hardware, software

and related areas

Scope cont.

COE Business Modules

• CAPACITY BUILDING– NMSDC BEST PRACTICES ASSESSMENT– MBE OPERATIONS AND NEEDS

ASSESSMENT– LEARNING ACTIVITIES

• MENTORING– INFORMAL– ONE-ON-ONE– GROUP

• DEVELOPMENT PLANS‒ CONTINUOUS IMPROVEMENT

Typical Business Module Schedule of Activities

Months 2-4Month 1 Months 7-12Months 3-6 Months 13-24

•Regional Council/Host Identification•Corporate Module Member Identification

•Module Kickoff•Corporate Best Practices Assessment•Gap Analysis•Commodity Needs Plan Development

•Identify MBE Participants•Regional Council Orientation Session

•Corporate “Who We Are/What We Buy” Sessions

•Document Corporate-MBE purchases

•Document Corporate Member Resource Contributions

•MBE Capacity Assessments•MBE Presentations•Corporate Best Practices Review•Corporate BP Development Plan

Module Organization

MBE Capacity Building

•MBE participation in Corporate Resource Contributions

•Advanced Program Development

•2nd Tier Program Development•Program Tracking Systems•Recognition Systems•MBE Development Plan

•Minority Executive Education•Leveraging Regional Council Programs•Strategic Alliances•Legitimate Minority JV Formation•Financial Strategies Development•MBE Participation in Strategic Sourcing•Advance Program Tracking Systems•Incentive Systems•Revenue Contribution/Cost Savings/Dashboards•MBE Financial Strategy Development•Business Module Wrap-up•New Business Module Launch

Corporate/MBEAdvance Strategy

DevelopmentCorporate Program Development