Lessons from U.S. Affirmative Action Presented to: IAABD, May 16, 2013 Accra Ghana By: Dr. Sandra R. Bell, PhD

Milestones in U.S. Equal Opportunity Lessons from Affirmative Action by Dr. Sandra R. Bell

Lessons from Affirmative Action by Dr. Sandra R. Bell Public Law 95-507 1) A strong and specific commitment to sub- contracting with small, small disadvantaged, and small women-owned businesses by large business prime contractors. (2) Detailed subcontracting plans for larger contracts (3) Monitoring of performance against the plan by SBA and by the procuring activity's contracting officer. (4) Federal buying agencies to establish an Office of Small and Disadvantaged Business Utilization to assist small businesses: expanding contracting opportunities and helping solve problems. (5) Annual goals for contracting and subcontracting with small, small disadvantaged (including 8(a)), and women-owned businesses to be set by Federal agencies. Lessons from Affirmative Action by Dr. Sandra R. Bell

Key Ingredients Lessons from Affirmative Action by Dr. Sandra R. Bell Markets & Opportunities Education Some Local Capacity and CSR Harmonized laws, &policies: courts, legislature executive Metrics Lessons from Affirmative Action by Dr. Sandra R. Bell

Lessons from Affirmative Action by Dr. Sandra R. Bell 3 Levels of Action Representation Participation Integration (Mainstreaming) Lessons from Affirmative Action by Dr. Sandra R. Bell

10 reasons US has fallen short 1. Alignment of laws and policies 4. Programs and Goals remain Static 7. Concentration on profits/equity versus income/cash flow 8. Separate goals for each group 5. Partnering with industries and SBEs 2. Focused on fixing small business 3. Concentration on low hanging fruit 6. Sporadic and Limited Funding 9. Short, mid, and long term strategies 10. Uniform application, certification process Lessons from Affirmative Action by Dr. Sandra R. Bell

1. Alignment in laws and policies Harmonization of laws, policies and rules Programs at national, state, and local levels ruled unconstitutional by U.S. Supreme Court Ironically law challenge basis was violation of 14th amendment “slave amendments,” right to due process Lessons from Affirmative Action by Dr. Sandra R. Bell

2. Focused on fixing small business Continuous chronicling of challenges: size, capital, capacity, credit, sales, market, human resources. Instead focus on: Holistic business-based approach to an enabling environment including not just contract opportunities but finance, purchasing, management technologies Lessons from Affirmative Action by Dr. Sandra R. Bell

3. Concentration on low-hanging fruit Focused on quick wins in ancillary areas: food service, ground maintenance, transport, etc. Integration to more critical, integral needs was limited Lessons from Affirmative Action by Dr. Sandra R. Bell

4. Programs and Goals remained static Programs need to grow, adapt and be responsive to changing market conditions be thermostats not thermometers Goals need to be proportionate to population representation Continuous repetition may be necessary at new levels for new entrepreneurs, retooling and reengineering efforts for veteran small business Lessons from Affirmative Action by Dr. Sandra R. Bell

5. Partnering with industry and SBEs Abandon adversarial contract relationships -- gotcha deals for partnering Choose and reward best value over low bids Ask SBEs and WBEs what they need Engage consultants who can provide specific, targeted assistance Develop access and integration into industry standard training programs and management courses Lessons from Affirmative Action by Dr. Sandra R. Bell

6. Sporadic and limited funding Mentor – Protégé had business development, technology transfer reimbursement type program for only 3 years BDE—business development expense funding for certified companies terminated Contract provisions for development or technology transfer funding via incentive for production, curtailed Lessons from Affirmative Action by Dr. Sandra R. Bell

7. Concentration on profits versus income Equity provisions can kill small business Profits never realized Costs for small business participation never fully funded Investment of time, labor not recouped by small firm Solution: Joint venture requirement that all funding be proportional for all costs especially indirect, overhead, general and administrative, etc. Lessons from Affirmative Action by Dr. Sandra R. Bell

8. Separate, goals for each group Women need their own goal U.S. didn’t do that until 2010 Blended goals means one group or another Gets shortchanged Lessons from Affirmative Action by Dr. Sandra R. Bell

9. Short and Long term strategies Legislative initiative are ‘shot in the arm’ Surface Transportation Act, ARRA etc. build up capacity, but sustainability is in local development, maintenance of infrastructure Goal is to integrate into the mainstream activity of the business, not the ancillary, peripheral and supplemental Lessons from Affirmative Action by Dr. Sandra R. Bell

10. Uniform certification, qualification process Eliminate duplicative processes Growth in number of supporting companies, breadth of sectors being considered, approaches, or the overall Type of content—is becoming noticeably more prominent in private and public spheres. Lessons from Affirmative Action by Dr. Sandra R. Bell

Lessons from Affirmative Action by Dr. Sandra R. Bell Make the Pie Bigger! Lessons from Affirmative Action by Dr. Sandra R. Bell

Determine what’s sustainable If you hit 300 in baseball, which is 30% of the time you’re considered to be “batting 100” When % are too high you risk developing fronts or straw companies where dollars pass through and are not retained Lessons from Affirmative Action by Dr. Sandra R. Bell

Underutilized gem: Women Women can make the difference Hire and train locally Manage money Create more new firms Stay the course Adapt and change more quickly Share and serve as peer monitors for each other Lessons from Affirmative Action by Dr. Sandra R. Bell

Bring in all stakeholders Listen & Share US has NMSDC, national minority supplier development council, certifies firms and Majority firms are members who meet regularly No business without finance: debt, equity And venture or investment capital are all needed and financial organizations must come to the table Lessons from Affirmative Action by Dr. Sandra R. Bell

Lessons from Affirmative Action by Dr. Sandra R. Bell FYI By: Dr. Sandra Roberts Bell, PhD sanrobell@msn.com 1-404-375-5067 www.niallc.net www.grupomemba.com Lessons from Affirmative Action by Dr. Sandra R. Bell