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

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

3. Lessons from Affirmative Action by Dr. Sandra R. Bell
Public Law
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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

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

18. 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

19. 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

20. 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

21. Lessons from Affirmative Action by Dr. Sandra R. Bell
FYI
By: Dr. Sandra Roberts Bell, PhD
Lessons from Affirmative Action by Dr. Sandra R. Bell