Keep the Momentum Moving! Planning to ensure your program continues strong in the face of change

1. Keep the Momentum Moving! Planning to ensure your program continues strong in the face of change Angel McCormick Franks Inclusive Business Initiative Insight Center for Community Economic Development December 4, 2008 Angel McCormick Franks, Director, Missouri Office of Supplier and Workforce Diversity Teo Tijerina, Executive Director, EDCO Ventures, Austin, Texas Jeff Jones, Sr. Vice President,Bank of America Supply Chain Management Teo Tijerina Jeff Jones

2. Insight Center for Community Economic Development • The Insight Center for Community Economic Development is a national research, consulting and legal organization that develops and promotes innovative solutions that help people and communities become, and remain, economically secure. The Insight Center is based in Oakland, California, and was founded in 1969 as National Economic Development and Law Center (NEDLC). • The Insight Center's multidisciplinary approach utilizes a wide array of community economic development strategies including industry-focused workforce development, individual and community asset building, establishing the link between early care and education and economic development, and advocating for the adoption of the Self-Sufficiency Standard as a measurement of wage adequacy and an alternative to the Federal Poverty Line.

3. Inclusive Business Initiative • The Inclusive Business Initiative is the Insight Center for Community Economic Development’s effort to support minority- and women-owned business development (MBEs and WBEs, respectively), through research, policy analysis, and partnerships with the public, private, and nonprofit sectors. This initiative is a key component of the Insight Center's work to advance strategies that build family and community assets and help overcome racial and gender wealth gaps. We also believe that strengthening the development of MBEs and WBEs is a key component of the economic development of cities, regions and states. • The Insight Center launched InBiz with a December 2007 online release – www.insightcced.org/index.php/insight-communities/inbiz – and a series of research reports that include the first-ever policy scan of each state’s inclusive business programs.

4. Angel McCormick Franks • Director, Missouri Office of Supplier and Workforce Diversity • Dealing with Change in the World of Politics

5. Missouri Office of Supplier and Workforce Diversity • The Office of Supplier and Workforce Diversity (OSWD) exists to promote a diversified workforce within state government and to assist women and minorities in developing opportunities to contract with the state, economically empowering traditionally underserved communities and improving the overall fiscal vitality of the State of Missouri. • To serve as a resource for promoting diversity within the state workforce and improving the opportunities for women and minorities to access state employment opportunities and state contracts through excellent service and efficient use of resources. OSWD works toward this goal by completing the following primary functions: Certification of Minority/Women Business Enterprises (M/WBE), Education and Outreach, and Matchmaking Activities.

7. When the world gives you lemons….make LEMONADE!

8. THE DAY AFTER THE GENERAL ELECTION You arise to discover that your candidate has lost the election. Since your job depends on a particular party, you start worrying. Don’t panic!!! Take a moment and breathe deep. It is now time to take stock of the progress you bring to the table.

9. TABLE OF CONTENTS I. THE DAY AFTER THE GENERAL ELECTION II. OUTLINE FOR SUCCESS III. THE ONLY SURE THING IS DEATH IV. STAY TRUE TO YOURSELF V. GOOD HOUSEKEEPING LIST

10. THE DAY AFTER THE GENERAL ELECTION How did you end up in this predicament? It sounded good at the time. Your Governor offered to appoint you as Director to the Office of Supplier and Workforce Diversity. You say to yourself, “WOW!” What a great opportunity. You delve head first into the position without thinking. Here are your surroundings: great upper management support, unsure staff, suspicious interoffice colleagues and no outside networking partners! Hmmm…what do you do? Take one step and day at a time.

11. OUTLINE FOR SUCCESS Keep a positive attitude! Meet each staff member, analyze and listen to their ideas. Restructure positions to the staff strengths. Re-establish disillusioned network partners by emphasizing the “positive results” of cross-collaborative ventures. Establish structures policies and guidelines. Make sure everyone you come in contact with realizes his or her WORTH to the OSWDmission.

12. THE ONLY SURE THING IS DEATH! As mentioned in previous context, I accepted a most challenging assignment. However with long hours, blood, sweat and a lot of networking, I was able to garner the respect of my staff, colleagues and outside organization. This resulted in a 180 degree turnaround and a Community Service Person of the Year Award from the Asian American Chamber of Commerce of Greater Kansas City. A little kindness and understanding go a long way!

13. STAY TRUE TO YOURSELF Follow the Golden Rule I’ve found if your up front and honest with all you encounter, the same is reciprocated Always give 110% or more The true superstars are those who go above and beyond standard expectations Be a champion for others It is your social responsibility to education those who cannot help themselves The A.R. T. Concept Accountable Reliable Transparent If you are mindful of accountability, reliability and transparency to all you encounter, the increased percentage of success rise exponentially!

14. GOOD HOUSEKEEPING RULES Keep all works accessible Provide annual reports and other resources available online for consumers. This saves time, money and promotes transparency. Keep ALL channels of communication open to all customers, management and colleagues. Foster outside network partnerships to save resources and incorporate fresh ideas Promote line-minded synergies when applicable

15. Teo Tijerina • Executive Director, EDCO Ventures, Austin, Texas • www.edcoonline.org • Keep the Momentum Moving! Planning to ensure your program continues strong in the face of change

16. Contents • EDCO Background • Key Structures • Recommendations • Change Management

17. EDCO Ventures Background

18. Mission • To create companies and jobs • with living wages • in economically distressed regions

19. EDCO Project Selection • Scope is to facilitate the creation of companies • High value-added products or services • Disruptive ideas or technology • High and fast growth potential • Criteria: • 5 year revenue target greater than $30 million / year. • Ability to produce jobs with living wages. • Headquartered in economically distressed region.

20. Key Structures & Processes

21. Founding Documents Founding Documents High level policy documents that: - Define Purpose, Organization & Founders - Undergo little change over time - Set High Level Strategy - Serve as the guiding principles for organizational behavior. Founding Documents answer these type of questions: - Why do we exist? - What is our mission? - What are our goals? - What roles should exists? • - Who is the Director in each role? • - What strategy should we use?

22. Typical Founding Documents • - Articles of Incorporation • - IRS F1023 - Bylaws - Organizational Goals (10 Yr) - Development Goals (10 Yr) • - Conflict of Interest Policy

23. Process Procedures Process Procedures - Get your Ducks in a Row! Administrative documents that: - Provide Instructions on complying to requirements. • - Focus on Execution • - Are useful for Training Board and Staff • - Undergo Frequent Change Process Procedures answer these type of questions: - How and when should people be trained? • - How and when can funds be spent? • - What are Admin Roles and Responsibilities • - How and when to evaluate employees? • - What are the vacation days? • - How are finances tracked and reported?

24. Typical Procedures • Document Control Procedure • Training Procedure • Fiscal Administration • Roles and Responsibilities Matrix • Travel and Expense Procedure • Vacation Policy • Project Tracking and Reporting

25. Recommendations

26. Recommendations • Financial • Strive to Build Assets • Build an Endowment Immediately • Create a Rainy Day Fund • Staff • Include Staff in Goal Setting • Use Performance Plans • Use Quantifiable Metrics when possible • Focus staff work on results • Board • Board adopts on Annual Goals (metrics) • Annual Board Review of Founding Documents • Board approves on Annual Budget

27. Change

28. Change • Focus on Results • Resist Negative Change • Embrace Positive Change • World is Constantly Changing

29. Jeffrey Jones • Senior Vice President, Bank of America Supply Chain Management • Keep the Momentum Moving • Planning to Ensure Program Success in the Face of Change

30. Brief Background • Bank of America • Bank of America Supplier Development • Me

31. Supplier Development Organization Martha Rangel Supplier Development Mgr. Jeff Jones Shawn Washington Supplier Dev. Mgr. Sr. Change Mgr. Steve Massey Supplier Development Revenue Enhancement Communications Mgr. JaymieMitchell JenniferRabon MaryGilliam Sr. ChangeMgr. ChangeMgr. Communications Specialist TJLewis DemetriaMassey SupplierDev. Mgr. BusinessSupport BrianPowers PaulBurbank SupplierDev. Mgr. MAPAssociate Bank of America – Proprietary – Do not distribute

32. Start Out Like You Can Hold Out • In order to maintain momentum you have to always act like this is a brand new initiative and no one knows what you are talking about. • Tribal versus Immigrant Knowledge • Let facts and data tell your story and emotion guide your enthusiasm about your story. • Your program has to be personality driven but not your personality • Never forget the power of the third person “Momma said who said” • Here is a secret (don’t tell) The third person can be a person, place or thing!

33. Follow the Money – The Link to Market Share • Always know the business case for your program • Keep up with the evolution of the case • Find out who’s business case it really is. • For Instance • Bank of America sells banking products and services to the federal government • The federal government says we must sub-contract to small and diverse suppliers • Supply Chain is responsible for sourcing suppliers • Supplier Development is responsible for helping supply chain source and keep diverse suppliers • So…who’s business case is this? I said “Momma said who said”

34. Initiative Customers • You have to know who all the customers of your program are! • Use a simple Six Sigma tool called a SIPOC to determine who the customers of your process are • SIPOC means: • Supplier – Suppliers and Bank associates who will spend money with diverse suppliers • Input – strategies/tactics used to spend money with diverse suppliers • Process – the process of spending money with diverse suppliers • Output – money spent with diverse suppliers • Customer – who cares about this result Here’s a big secret – don’t tell anyone. You want to have a relationship with the customers of the process

35. Critical to Quality (CTQ) – A Six Sigma Term • Identify the customer and what is important to them – not you! • Supply Chain management – they get great suppliers who save us money • Bank of America Sales Teams – Increased revenue, they get to be more competitive as they bid on banking business with the government, non-profits and companies that say diversity is important; satisfied customers • Bank of America Lines of Business – better solutions • Regulatory Affairs – a favorable reputation • Marketing – links to diverse customer groups • Community Investment Group – they are able to tell a good story in the community • Market Leadership – Brand Enhancement • Corporate Diversity Executive – they want the best diversity story they can get • The diverse supplier – they make money

36. We Owe, We Owe, So Off to Work We Go • Manage your relationships so that you owe someone something • Over time people forget what you are supposed to do for them. So remind them of why you are engaged with them. It is to meet those CTQs. • Your customers are not in the business of supplier diversity – you are - so you have to be concerned about the customer meeting their goal with supplier diversity included

37. How Do We Get This Done • Integrate and Communicate

38. Integrate and Communicate • Integrate your people with designated sourcing teams to drive results • Management Review of Supplier Diversity Performance • Get it scheduled so someone is asking you for it • We report quarterly to senior leadership spend in dollars, % spend, supplier development activities etc. • We use a Six Sigma approach using facts and data • Communicate how your diverse suppliers are performing and how they impact your customer’s CTQ • Are your diverse suppliers bringing value – savings, process change etc.. • Remember the more you report on someone else’s CTQ the more value they see in the program – even through change!

39. Integrate and Communicate • Communicate your Awards and Integrate with other Bank Award Winners • On internal and external websites we let the world know what awards we have won for supplier diversity. • Equally as important we notify our Corporate Diversity Executive so that we can be included in the overall diversity picture for Bank of America. • Track Media Exposure • Supplier Diversity at Bank of America has been the subject of significant press exposure. • We share that exposure internally. It gives others a sense of ownership and again it gets people talking about your program. • Let me ask a question – Do you think corporations want to sustain programs that are winning and bringing good exposure?

40. Integrate and Communicate • Track and Report on Your Public Policy or Community Investment Support. • Bank of America partners with key stakeholder groups around the country: NMSDC, WBENC, Insight Center; Greenlining Coalition, NAACP, Urban League, USHCC etc. • We execute on supplier diversity training in the field, participate in trade shows, events and meetings with stakeholders • We also participate in diversity events that impact our Community Investment team even though the events are supplier diversity • (Remember program sustainability through change results from someone looking for you)

41. Integrate and Communicate • We Track Contribution to Revenue • We know how many RFPs for Bank services we contributed to • We know how many referrals to our customer sales units resulted in business for Bank of America. • We respond to customer supplier diversity spend report

42. The End of the Matter • I wanted to share things that you may not necessarily find written in a book somewhere. • Remember this: • Supplier Diversity is a business imperative that has many process customers all who have a desire for the program to do well. Sometimes they don’t remember that is what they want so we remind them of what they should expect in order to meet their goal and how we are going to help them reach it. We use the power of the third person to integrate and communicate what is important using facts and data. And like good Six Sigma practitioners we duplicate this process over and over.

43. Contact Information • Jeffrey W. (Jeff) Jones • 757-728-3711 • Email jeff.jones@bankofamerica.com • www.bankofamerica.com see Bank of America in the Community for Supplier Development information

44. Corporate signature Do Not print this page. For projector presentations only.

45. The Inclusive Business Initiative • http://www.insightcced.org/index.php/insight-communities/inbiz

46. The Inclusive Business Initiative • http://www.insightcced.org/index.php/insight-communities/inbiz Missouri OSWD http://www.oswd.mo.gov/ EDCO Ventures www.edcoonline.org Bank of America Supply Chain Management www.bankofamerica.com/suppliers