the challenge of the diverse supplier

© 2011 Institute for Entrepreneurial Thinking, Ltd. ▪ All rights reserved.© 2011 Institute for Entrepreneurial Thinking, Ltd. ▪ All rights reserved.

Building the Capacity to Succeed

The Challenge of the Diverse Supplier

Presented by:Melvin Gravely, Ph.D.

Institute for Entrepreneurial Thinking, Ltd.www.entrethinking.com

© 2011 Institute for Entrepreneurial Thinking, Ltd. ▪ All rights reserved.

The Big QuestionWe Should Never Assume

Do you really want to

compete at the next level?


The Relevant Truth…It Has Always Been True But Even

More NowBusinesses must earn

their right to go to the next level!


The Three Eras

Set Aside Era- Projects set aside for minority firms

- Few minority firms to compete

- “Legislated” inclusion

Access Era- Access to

information- Access to

technical support/education

- Access to decision makers

- “Desired inclusion

Competitiveness Era- Expectation of scale, scope, and reach

- Political/ business climate

- Avoidance of risk

- Fewer concessions

- “Aspired” inclusion

1 2 3


The Nature of Competitiveness

Thresholds To Compete

Com

peti

tive

ness

Thriving

Existing

Unsustainable


The Changing Value Expectation

What It Takes To Be Competitive

Me TooSomeday

Me Too MeSpecial

MeOnly

Time & Value


Exercise

1. How are you positioned?2. How do you know?3. What could improve your position?


Know Where You AreCompeting In a New EraFive Key Attributes!

Know Where

You Are


To Thine Own Self…


Where Are you Now?A Self Assessment

1 5Business Strategy

1 5Consistency & Predictability

1 5Ability to Win Non-DBE Contracts

1 5Financial Strength


Where Are You Now?A Self Assessment

1 5Supplier Relationships

1 5Image & Reputation

1 5Product or Services Quality

1 5Marketing & Sales


Competing At The Next Level?

Where Are You Now?• Do you know the answers?• Do you like the answers?• Do you know what to do with the

answers?• Do you “know” what others

would say?


Helpful ToolsTo Know Where You Are

• www.GetTheNextLevel.com• www.NMSDC.com (BiZFit)


Focus On Strategy

Focus On

Strategy Know

Where You Are


What We Say We Need Most?

Is that Really What We Need Most?

?Whatwe

have

Whatwe

wantContracts Capital&


What Do We Really Need Most?

A business that can get

contracts and attract capital!


Contracts Capital

ProfitGrowthWealth

Strong Strategy

Whatwe

want

Whatwe

have

What Do We Really Need Most?


What does strategy get you?

• Allows you to win customers• Enables you to profitably deliver

on promise• Positions you to profitably grow

the business• Creates “repeatability” leading to

wealth


Core Strategy Questions1. How do we compete?

– Cheaper or better– Position with competitors

2. Where do we compete?– What customers?– What venues?– What means? (i.e. bid, negotiate,

quote)


Core Strategy Questions3. How do we consistently deliver on promise?

– Process, partners, suppliers– What must we improve?

4. How do we make money?- Service, equipment- Man hours?, cost plus?, lump sum?- Volume?

5. How do we plan to grow?– New markets– New customers– New products– More w/existing


Contracts & CapitalThe truth is…

A means to get what you really

want!Profit Growth Wealth


Build The Right Capacity

Build The

Right Capacit

y

Focus On

Strategy Know

Where You Are


The Capacity to SucceedThe Capacity You Really Want!


Building The Right Capacity

Two Types of Investments• Horizontal Investments– Easy to see direct benefit– Time to ROI is close– Familiar/confident with benefits

• Vertical Investments– Not a direct benefit– Time to ROI is long-term– “Believe” there are benefits but….


The Evolution “Curve”What Investments Make Sense?

Second

First

Third


The Business Evolution “Curve”

First

Second

ThirdWhat

does it take to evolve?

An Investment

Leap



Every investment is some type of

“leap” of belief!• Horizontal Investments• Vertical Investments


The ROI of The Right Capacity

• Stronger competitive position– More business

• Impact on stakeholders• Less volatility• Income and wealth• Quality of life• Survival???



What Stops a Business From Investing?• Unwilling to invest• Not wanting the benefits….enough• Satisfied with current position

– See no need to change• Caught in the cycle of what it’s like

today– Therefore “can’t” invest


Head-To-Head?

Ability to go Head-

to-Head

Build The

Right Capacit

y

Focus On

Strategy Know

Where You Are


Does Talent Matter?Really…

• Experience?• Track record?• Capabilities?• Judgment?• Expertise/

Knowledge?• Work habits?• Productivity?


Talent Matters Even More to You

• Brand• Perception• Less margin for error• Larger % of your total• Competitive Advantage….

– Really?


Competitive Advantage

?Execution!80% is talent driven

Not what you do but how you do it!


Talent Has A Direct Correlation• How much gets done

• How well it gets done• How much it cost to get it done

– Waste– Management intervention– Customer satisfaction– Equipment damage– Safety– Turnover


Do We Hire the “Best” Talent?

If Not, Why Not?• We don’t think they would work for us

• Loyalty to family and friends• We don’t think we can afford the

best• The cost of the best• We don’t think about the best


Which Roles Matter Most?

• Knowledge/Expertise• Experience• Judgment• Management• Leadership


It Cost More Than You Think• Direct Cost

– Compensation (salary, hourly, benefits, etc.)– Cost to fix errors– Cost to manage– Lost productivity (turnover, etc.)

• Hidden Cost– Customer satisfaction– Lost business– Inability to hire top talent


How Much Better……must they need to be?

$20/hour$41,600/yr

$40/hour$83,200/yr

?


CEO

Marketing

SalesCFO COO HR

____________________________________

____________________________________

____________________________________

____________________________________

Do We Hire the “Best” Talent?

If Not, Why Not?


What Do We Do?• HR 101- Develop and follow your

hiring process• Define the roles where “Best” talent

is needed• Objectively review the capabilities of

the people in the role– Based on well developed description

• Create a priority list of talent and roles

• Decide where you want to take action


Competing In a New EraWhat Will It Take?

Ability to go Head-

to-Head

Build The

Right Capacit

y

Focus On

Strategy Know

Where You Are


Helpful Websites• www.GetTheNextLevel.com• www.CompetitiveBiz.com• www.ColorOfOpportunity.com• www.EntreThinking.com


The Question For Diverse Firms

If you are committed to your own success…What would you be doing if you were

not a diverse firm?


Four Book Series…

www.ColorOfOpportunity.com

© 2011 Institute for Entrepreneurial Thinking, Ltd. ▪ All rights reserved.© 2011 Institute for Entrepreneurial Thinking, Ltd. ▪ All rights reserved.

Building the Capacity to Succeed

The Challenge of the Diverse Supplier

Presented by:Melvin Gravely, Ph.D.

Institute for Entrepreneurial Thinking, Ltd.www.entrethinking.com

the challenge of the diverse supplier

Documents

entrepreneurial thinking

changing value expectation

core strategy questionshow

succeedthe challenge

diverse supplierpresented

strategyfocus onstrategyknow

todays agenda

businesscreates repeatability