Best Practice

A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND JANUARY 2001 Contents Introductory Letter Best Practices Minority Supplier Success Stories SunTrust Dominion Virginia Power Virginia Commonwealth University Sample Supplier Diversity Policy Profitable Partnerships Richmond Renaissance Virginia Regional Minority Supplier Development Council Other Resources 1 2 4 5 6 8 11 12 21 22 24 Cover photo: (left to right) Eugene Trani, Virginia Commonwealth University; David Milby, Philip Morris; Suzanne Gwathmey, Gwathmey Design Group; Jim Ukrop, Ukrop’s/First Market Bank; Janet Williams, Nations Environmental Services, Inc.; Sandy Fitz-Hugh, Bank of America; Bill Cooper, Choice Communications, Inc.; Adele Johnson, Virginia Regional Minority Supplier Development Council; Ken Johnson, Johnson, Inc.; and C.T. Hill, SunTrust Designer: Ken Anderson Editor: Patty Frost Dear Corporate & Community Leaders: T he Richmond Region is experiencing a dra matic period of growth and development. Over the last five years, 50,000 net new jobs have been created in the region. More than $6.5 billion has been invested by 136 new companies in the last four years. Unemployment stands at less than 3 percent; welfare rates and crime rates have declined significantly; student test scores are up; and the city’s downtown area is experiencing an impressive come-back. While the region’s strong economic growth has benefited a majority of Richmonders greatly, minorities, as a group, have not shared proportionately in the increased prosperity. There is increasing evidence, however, that minority businesses prosper and minority communities realize increased capital investment and employment opportunities, where majority corporations are successfully implementing minority business development programs (sometimes called supplier diversity programs.) In addition, there is a growing awareness that sourcing from MBE suppliers brings value and innovation to the supplier base. Also, many companies now realize that the benefit accrues to the bottom line when they have a supplier base that mirrors their diverse customer base. The future health and development of our community can be enhanced by the participation and associated growth of minority-owned companies. We believe it is vitally important to escalate the effort to encourage not only utilization, but also inclusion of minority entrepreneurs in the process of developing our city. When successful, we will foster economic growth within the minority community and include more minority entrepreneurs in the mainstream of the Richmond economy and American free enterprise system. Richmond Renaissance, Inc. and the Virginia Regional Minority Supplier Development Council have come together to make the case for new and expanded supplier diversity programs among Richmond’s major companies. This publication identifies the attributes, or “best practices,” of successful supplier diversity programs; it features summaries of some of the best programs here in Richmond; and it highlights examples of successful partnerships between major companies and MBEs. We hope you will share this booklet with your management team and your purchasing staff as you make a commitment to initiate or expand a supplier diversity program in your company. If you would like additional information about local supplier diversity programs, or if you need help in setting one up, we’re at your service. Please join us in forging new partnerships to create an even stronger Richmond economy and community. Sincerely, Al Broaddus RICHMOND RENAISSANCE AFRICAN-AMERICAN ECONOMIC PARTICIPATION COMMITTEE PRESIDENT, FEDERAL RESERVE BANK OF RICHMOND AND Earl H. McClenney, Jr. RICHMOND RENAISSANCE AFRICAN-AMERICAN ECONOMIC PARTICIPATION COMMITTEE AND CHAIRMAN, DEPT. OF PUBLIC ADMINISTRATION, VIRGINIA STATE UNIVERSITY Charles W. Mason CHAIRMAN VIRGINIA REGIONAL MINORITY SUPPLIER DEVELOPMENT COUNCIL SUPPLIER DIVERSITY MANAGER, NEWPORT NEWS SHIPBUILDING AND Adele Johnson PRESIDENT VIRGINIA REGIONAL MINORITY SUPPLIER DEVELOPMENT COUNCIL A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 1 Best Practices Common Attributes of an Outstanding Supplier Diversity Program Effective supplier diversity programs differ across organizations reflecting the particular circumstances — customer base, workforce characteristics, etc.— of individual companies. Experience indicates, however, that companies with the most successful programs typically follow certain “best practices.” The following attributes are considered critical to the successful implementation of a corporate supplier diversity program. ■ The company has a written minority supplier development policy, directing adherence to affirmative procurement practices. The company policy statement originates at the CEO level with senior management buy-in. The company policy is posted and disseminated throughout the organization. There are written procedures that specify the actions staff must take to ensure inclusion of MBEs. These procedures are included with all other company policies and procedures. Responsibility for the MBE program is a company-wide initiative that is not limited to the purchasing staff. The company has established corporate-wide, division-level, and department-wide minority supplier goals. An assessment has been made to determine products and services to be excluded from the procurement base for purposes of goal setting. ■ ■ ■ ■ ■ ■ 2 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND ■ The company has a process for determining whether companies qualify as MBEs, such as certification through the Virginia Regional Minority Supplier Development Council. The company has classified its vendor base in order to track purchases from MBEs. Company performance is carefully monitored against goals using clear and explicit measurements. Performance results are routinely reported to senior management, including the CEO. The purchasing staff and users have received orientation and training on supplier diversity policies, purchasing procedures, MBE participation goals, tracking, and reporting. The company has an internal staff person assigned to coordinate MBE utilization efforts. The company has a team structure — such as an MBE advisory council — in place to ensure participation from all departments. ■ The company is receptive to MBE risk-taking: for example, it is willing to offer an opportunity for MBEs to participate in a small portion of a major project or contract. The company has a mechanism for generating feedback from minority suppliers. Explicit efforts are made to encourage prime contractors to undertake second-tier subcontracting to MBEs. The company is an active member of the Virginia Regional Minority Supplier Development Council and is a corporate member of the Metropolitan Business League, as well as other organizations promoting alliances with minority-owned companies. There is a process for recognizing exemplary performance for company executives, purchasing staff, and suppliers. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 3 preceding best practices employed very useful designing new programs and revitalizing or strengthening existing programs. T heRichmondinchecklist ofestablish and implement in successful supplier diversity programs canAsbe more companies strong supplier diversity programs, the City can add other success stories to position Richmond as a national model for minority business development. To fully appreciate how these practices can help individual companies, however, it is important to see actual business situations. The following section summarizes three extremely well-established programs operating in the Richmond market and an example of the successful partnerships that have resulted. Minority Supplier Success Stories 4 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND committed supplier diversity development, because it is the right thing to do, but because it is good business. S unTrust is firmlybecoming thetoleading financial services providernot only SunTrust’s vision of in its marketplace depends largely on strong, prosperous local economies. SunTrust’s footprint comprises an increasingly diverse consumer population and business community, with minority and women-owned enterprises exhibiting a growing and positive influence on marketplace economies. These individuals and businesses also represent a key source of potential revenue for the bank’s retail and commercial businesses. Cultural diversity in the workforce and in the supplier base enriches SunTrust and makes the bank more attractive to current and potential customers. SunTrust Bank, Mid-Atlantic established a formal supplier diversity program in 1994. Informal efforts and activities have been underway in various other areas of the corporation. During the SunTrust/Crestar merger, SunTrust tapped Crestar’s program to focus and expand a formal, centrally managed program throughout the full SunTrust footprint. SunTrust adopted a corporate policy earlier this year and implemented a corporate-wide procurement tracking system. SunTrust’s supplier diversity manager also sits on the corporation’s Diversity Council, a cross-functional team of executive and senior managers that address diversity issues regarding SunTrust’s employees, customers, and communities. The Council is led by one of the corporation’s four vice chairmen. In 1999, the bank spent $17 million with minority-owned businesses, with $10.6 million of that total generated through the SunTrust Mid-Atlantic program. The $10.6 million represents an increase of more than 200 percent since the formal program in the Mid-Atlantic was implemented. During that time, individual contracts with W/MBE suppliers have grown significantly, with several now having estimated annual values of greater than $1 million. The bank’s mix of W/MBE suppliers has also diversified. Early successes were in areas considered “traditional” minority business industries — janitorial services, office and computer supplies, and printing. By the year 2000, almost every major business line or staff department had at least one significant minority or woman-owned business partner. SunTrust’s supplier diversity program includes management goals, reporting procedures, proactive outreach, a full-time coordinator, internal staff/executive training, and emphasis on second-tier contracting, advertising and communications, and active involvement in minority business development organizations. C.T. Hill PRESIDENT & CEO, SUNTRUST BANK, MID-ATLANTIC “SunTrust’s supplier diversity program is not one of set-asides, quotas, or preferences, nor is it a ‘social welfare’ program. It is a program of inclusion, ensuring that qualified, competitive minority businesses have equal opportunity to compete for our business.” Thompson Hospitality When SunTrust began developing its campus south of the Manchester Bridge, it wanted to ensure that minority-owned businesses were included in the process. Numerous minority-owned companies worked as subcontractors on the project, but it was in food service contracting that the bank truly hit gold. Warren Thompson, the owner of Thompson Hospitality (a food service and catering company that regularly appears in the Black Enterprise 100), had met Tom Willis, SunTrust’s senior vice president of general services, through events hosted by the Virginia Regional Minority Supplier Development Council. After reviewing several potential providers,Willis contracted with Thompson to manage the food service operations at the new mortgage company headquarters. The building complex expanded in 1997 to include the 450,000 square foot Riverview Center. Thompson Hospitality manages the food service operation in that facility as well. Tim Hanger GROUP VICE PRESIDENT, PROCUREMENT OPERATIONS DEPARTMENT SUNTRUST BANK, MID-ATLANTIC “Supplier diversity development is not a one-person or even a one-department job. Equal opportunity means that minority businesses have access to purchasing decision-makers in all lines of business.” A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 5 Dominion Virginia Power Power’s formal supplier diversity program was D ominioninVirginiaThe program has established 1980. grown from one full-time employee to three, and includes educating employees on the strategic importance of supplier diversity, performing outreach activities, reporting progress on annual corporate goals, and recognizing employees’ contributions to supplier diversity initiatives. 6 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND program maintains a W/MBEs, keeps T hethe GSA Subcontractingcorporate directory of liaison with governabreast of Federal regulations relating to prime contractors, administers Plan, and serves as a mental and community agencies. In 1999, the company’s total expenditures to W/MBEs exceeded $98 million. The Dominion Virginia Power Supplier Diversity Program identifies qualified minority and women-owned businesses to participate in bids, and develops and maintains a positive company image with the W/MBE community. Dominion Virginia Power establishes goals for the use of minority, women-owned, and other small businesses, with individual business unit goals comprising the corporate goal. Reports issued to senior management and business unit personnel track performance, and diversity goals are a significant part of the overall corporate objectives used to measure individual and business unit performance. Dominion Virginia Power has implemented a second-tier program that requires program bid solicitations for goods and services of $500,000 or more to include subcontract plans for minority and women-owned small businesses. Dominion Virginia Power has also established a formal W/MBE partnering/mentoring alliance program to provide management and technical assistance, foster minority business development, and increase participation in the company’s procurement activities. Tom Capps CHAIRMAN, PRESIDENT & CEO DOMINION VIRGINIA POWER “Dominion Virginia Power believes in building capacity in minority-owned companies. That is why we sponsor scholarships each year to the minority business executive programs at Dartmouth College and the University of Virginia’s Darden School of Business.” Nations Environmental Services, Inc. Dominion Virginia Power introduced Nations Environmental Services, Inc., a woman-owned minority business, to its various business units in order to market the firm’s qualifications. Initially, Nations’ offered only restoration services and asbestos and lead inspections. Under contract with Nations for asbestos abatement, Dominion Virginia Power extended this contract to include painting services when Janet Williams, CEO, Nations Environmental Services, Inc. the need arose. With this opportunity, Nations broadened their service capabilities to include painting as well as environmental services. Lowell Carrington SUPPLIER DIVERSITY MANAGER DOMINION VIRGINIA POWER “Supplier diversity strengthens our marketplace and communities by building relationships that foster inclusion, competition, and growth.” A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 7 VIRGINIA COMMONWEALTH UNIVERSITY V irginia Commonwealth University is proud of its supplier diversity program, which is consistent with the University’s mission of promoting diversity among students and employees. One-fourth of VCU’s 24,000 students represent minority groups. An impressive 37 percent of the fall 2000 freshman class are minority. Approximately 38 percent of the 14,684 employees at the University and the VCU Health System are minority, and nearly 60 percent of the approximately 500,000 patients in the VCU Health System are African-American. 8 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND to University President Eugene P. A ccording promoting business opportunitiesTrani,VCU is active in with minority firms to: 1. promote economic growth in the minority business community; 2. create and transfer wealth in a global community; 3. take a leadership role in a diverse community; 4. ensure the largest pool possible of high quality firms with which to do business; and 5. complement VCU’s mission to promote a diverse community of learning. Since establishing a supplier diversity program in 1987,VCU has consistently increased expenditures with minority-owned firms. In fact, expenditures with MBEs have increased by 649 percent since 1992. In fiscal year 2000,VCU’s and VCU Health System’s expenditures with minority-owned businesses totaled $12.1 million, up from $8.5 million in 1999. A large percentage of this number comes from majority firms subcontracting or entering into joint venture relationships with minority businesses. During the last fiscal year, 48 percent of VCU’s and VCU Health System’s minority expenditures were from subcontracting activities — an excellent way for small minority businesses to obtain work and develop long-term mutually beneficial business relationships. The Virginia Public Procurement Act mandates competitive procurement practices and public advertising of purchasing requirements. Additionally, law prohibits preferential treatment and set-aside programs at VCU since it is a state-supported university. Still,VCU’s supplier diversity program is widely recognized as one of the best in the region and is often cited as a model for other state agencies and public institutions. VCU requires that a minimum number of MBEs be directly solicited for each purchasing requirement and uses minority participation as an evaluation criterion on all requests for proposals. In addition,VCU strongly encourages subcontracting, joint ventures, and partnerships in all of its solicitations. VCU hosts minority vendor symposiums, conducts training for MBEs, maintains a web-based MBE list by commodity/service, and includes MBE utilization as a component of every buyer’s annual performance plan. Eugene Trani PRESIDENT, VIRGINIA COMMONWEALTH UNIVERSITY “I am perhaps proudest of the fact that VCU, the VCU Health System, and the Virginia Biotechnology Research Park have undertaken these minority outreach strategies on their own behalf and not through any mandate or regulation.” Ed Gibbs DIRECTOR OF PROCUREMENT AND PAYMENT VIRGINIA COMMONWEALTH UNIVERSITY “VCU puts minority businesses in direct contact with the buying staff and other key decision-makers at the University.” A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 9 Virginia Commonwealth University (continued from page 9) Choice Communications, Inc. In 1995,VCU privatized its printing and duplicating operations by awarding a contract to Xerox business systems. Xerox’s use of Choice Communications, Inc. (CCI) as a subcontractor was an integral part of the contract. VCU has recently awarded CCI contracts to produce stationary products and print-to-mail products. The five-year contract began in January 2001. “We are very excited about the partnership we’ve created with Choice,” said Diane Reynolds,VCU’s director of business services. “They’ve really proven themselves in the past.” CCI presented a master plan to VCU that included integrating on-line ordering and departmental printing and job submittal. Based on the plan, each of these tasks can be implemented from the desktop of any member of the VCU community, including students and faculty/staff. CCI’s unique plan allows for hard copy scanning kiosks throughout VCU campuses, so that the academic community can scan, digitize, and submit jobs for production. Automatic billing to departmental accounts, student accounts, or credit cards will also become available. Bill Cooper PRESIDENT AND CHIEF EXECUTIVE OFFICER CHOICE COMMUNICATIONS, INC. “Virginia Commonwealth University, as a leader in minority business development, has enabled Choice Communications to invest in technology, manpower, and resources to create a winning partnership.” 10 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND Sample SUPPLIER DIVERSITY POLICY It is the policy of Our Company to provide opportunities for minority enterprises to ensure their fair market share of the company’s total expenditures for goods and services. In establishing this policy, Our Company is recognizing its responsibilities to the communities that it serves and the society in which it conducts business. The use of minority business enterprises must be a function of our normal purchasing procedures, just as equal employment opportunity must be an integral part of normal personnel policy and procedures. No potential supplier will be precluded from consideration on the basis of race, color, religion, sex, age, or national origin. Our Company firmly believes that in our free enterprise system every attempt must be made to fully utilize all of our resources, human as well as material. The term “Minority Business Enterprise” means a company that is at least 51 percent owned, controlled, and operated by a person(s) representing a racial minority group and is a citizen of the United States. For the purpose of this definition, minority group members are African-Americans, Hispanic Americans, Asian Americans, Asian-Pacific Islanders, Native Americans, and Aleuts. Every employee who is delegated the responsibility to either directly or indirectly commit the expenditure of funds for the purchase of goods and services is charged with the task of making our corporate objective a reality. Charged with the specific responsibility of administering the Minority Business Enterprises Policy for Our Company is John Doe, manager of purchasing systems and services. This person is responsible for leading our supplier diversity effort and will monitor and report our progress to my office at established intervals. Our success, however, is dependent upon the participation and commitment of all company employees. Mary Jones CHAIRMAN AND CEO Our Company A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 11 Shockoe Slip in downtown Richmond Profitable Partnerships broad supplier diversity programs described in tion, number of larger Richmond companies have established productive B eyonda thewith minority-owned companies to meet specific the preceding secpartnerships business objectives. The following pages highlight several successful partnerships that span all areas, services, and products of the corporate world. 12 12 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND Partnerships For many years, Philip Morris USA contracted with J&P Building Services to maintain and service its duct work on a short-term or individual purchase order basis. Realizing it would be more beneficial for both parties to transition into a long-term agreement, Philip Morris asked Joe Page, owner of J&P, if he would like to enter into a mentoring relationship with the Philip Morris purchasing department. Subsequently, a one-year contract was awarded in which the two companies worked to strengthen and expand J&P’s service to Philip Morris in new ways. J&P strengthened its business position so extensively that it earned a new long-term agreement with Philip Morris, in addition to taking on new customers for the first time in years. Bank of America and Johnson, Inc. are certainly not strangers. Ken Johnson made his first contact with James Jackson, former president of Bank of America in Virginia, eight years ago. Bank of America used Johnson, Inc. to conduct market research on Richmond’s AfricanAmerican community and to create a national recruitment campaign tagged “Together We Can.” The market research study was completed in March 1999 and provided recommendations regarding the bank’s local Professional African-American Initiatives. The national campaign was used as a tool to recruit mid-level African-American managers throughout the country. The relationship does not stop there, however. Under the leadership of Sandy Fitzhugh, president of Bank of America in Virginia, the bank has become involved in Johnson, Inc.’s annual Sister to Sister Conference, the Friday’s at Sunset concert series, and the Freedom Classic festival. Bank of America, a significant corporate sponsor for these events, hopes in the future to provide Johnson, Inc. with regional and national contracts. Johnson, Inc. is a full-service advertising, marketing and public relations firm specializing in niche marketing to the African-American and Latin-American communities. In addition to Bank of America, Johnson, Inc.’s clients include General Mills, Dominion Virginia Power, and the Medical College of Virginia Hospitals at Virginia Commonwealth University. BUILDING SERVICES, INC. A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 13 13 Partnerships Mirror Enterprise, Inc. has partnered with Customer Service Solutions and a local community college to provide customer service training and development services to City of Richmond employees. The City of Richmond has embarked on an ambitious initiative to improve the quality and level of customer service. To that end, Richmond is committed to providing opportunities for employees to increase their skills and knowledge to support this City-wide initiative. Mirror Enterprise, along with its partners, will provide training to 4,800 employees in over 20 departments. The initial term of the contract, which resulted from a competitive solicitation, is one year with a four-year renewal option. Mirror Enterprise is a professional and personal development, training, and consulting firm. In addition to the City of Richmond, other clients of Mirror Enterprise include the Greater Richmond Transit Company and the New York Times. Networking Technologies and Support (NTS) netted its first project with SunTrust Bank (formerly Crestar) in 1997, soon after NTS opened for business. The company provided network design and implementation services for the bank’s Consumer Finance Group. NTS leveraged the success of that project, along with a growing array of contacts with SunTrust’s technology group, into a contract for server maintenance and periodic spot purchases of network equipment. In late 1999, NTS stepped in as a secondary PC value-added reseller when the SunTrust-Crestar merger activities resulted in a large increase in computer equipment procurement. NTS ended 1999 as SunTrust’s third largest minority supplier, and showed promise of becoming the bank’s largest minority supplier by the end of 2000. 14 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 15 Community Pride Community Pride and Price Services, two minorityowned companies, have been doing business with one another for several years. Johnny Johnson, president of Community Pride, met James Price, president of Price Services, eight years ago. Johnson was originally looking for a computer consultant, and through a mutual friend, the two were introduced. 16 16 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND Partnerships Johnson was so impressed with Price’s knowledge of computers and technical support that he hired him immediately. Price Services provides network, wiring, computer hardware, software, and business consulting in information technology to all of Johnson’s stores. “We have a great working relationship, with a high level of trust and understanding that has developed into a good friendship,” Price said. Price Services specializes in computer consulting, staff augmentation, technical support, installation, and training. Community Pride provides grocery products and catering services and is the largest minority-owned grocery store chain in the nation. The Ukrop’s-Choice partnership originated in a 1997 meeting, when representatives from Choice Communications, Inc. promoted its company’s ability to produce personalized documents for mass mailings. Ukrop’s, a longtime proponent of targeted marketing, had been looking to personalize its “Valued Customer” program. The two companies shared the belief that personalized mailings increase customer loyalty and improve sales, and these concepts laid the foundation for a long-term partnership. Their first joint venture was an overhaul of Ukrop’s quarterly “Baby Club” package. Choice revised the mailer by adding a customized newsletter and personalized coupon pages. Using a high-speed digital press with personalization capabilities, Choice provided Ukrop’s with improved turn-around times and significant postage savings. More recently, Ukrop’s has used Choice for similar programs targeted to cookie and cereal purchasers. Choice also produces digital and offset-printed products for Ukrop’s employees and broader customer base. Choice also produces the “Great Turkey Giveaway,” one of Ukrop’s largest mailings. A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 17 Partnerships The relationship between Turner Construction Company and Davis Brothers Construction Company has grown to a successful team association since the first meeting between Jack Rogers of Turner and Langston Davis of Davis Brothers in the early 1980s. The Turner/Davis team combines the strength and resources of a national firm with the expertise of a local firm that provides the highest level of quality and MBE participation. Turner and Davis are currently teamed on the Greater Richmond Convention Center project, where over $22 million of work has been contracted to minority businesses. Other joint projects have included Biotech II, the Virginia Division of Forensic Science, the Office of the Chief Medical Examiner, and pre-engineering services for the Virginia Union University Convocation Center. Turner and Davis have also joined forces with the Convention Center Authority and Virginia Union University to conduct a local contractor’s college, graduating over 80 participants in 1999. The college sessions included marketing, sales, estimating, bidding, scheduling, accounting, job cost control, insurance, bonding, finance, and safety. Davis Brothers construction has teamed with other major construction companies on highprofile projects in Richmond, including Whiting & Turner on the Whiteoak Semiconductor Plant and Donnahoe Construction Company in a joint venture on the SunTrust Mortgage Center. Early construction of Richmond’s Convention Center 18 18 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND Partnerships At the Virginia Business Opportunity Fair ‘99, Dao Huynh, president of DNDS.com, was introduced to Mark Damico of URS Corporation, the firm currently managing the Richmond International Airport (RIC) capital improvement program. Huynh’s technical knowledge and professionalism made a lasting impression on Damico. “I knew immediately that Dao and his firm would make an excellent addition to our team,” said Damico. DNDS.com has been an integral part of the airport program management team, providing web development, multimedia, and scheduling services. The contract length is five years, during which time DNDS.com will share in the $245 million proceeds. DNDS.com provides web business (e-commerce and database integration), multimedia, and micro-CD production. In addition to RIC and URS Corporation, other DNDS.com clients include MCI-World Com, PEPCO, Philip Morris, SunTrust, Unisys, International Paper, TRW, Freddie Mac,VCU, Moore Document, John Deere, and SAIC. As a result of networking opportunities provided at events hosted by the Virginia Regional Minority Supplier Development Council, a great business relationship formed between Commonwealth Courier Services and SunTrust Bank. When SunTrust (formerly Crestar Bank) was nearing the completion of its merger, a special project was put in place. All obsolete company literature needed to be picked up from the bank’s Maryland, DC, and Virginia branches and taken to a disposal site. The job needed to be done within four weeks. Tim Hanger, the supplier diversity manager for SunTrust, called on Kevin Russell, president of Commonwealth Courier, to handle the job. For the last five years, Commonwealth Courier has provided SunTrust with courier and delivery services on a regular basis. Commonwealth Courier is a scheduled, routed, on-demand, next day, and freight delivery service. Its regional coverage includes Virginia, North Carolina, Washington, D.C., and Maryland. A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 19 19 Partnerships Philip Morris USA has long been recognized for its commitment to supplier diversity. Locally, the company is a model for building successful partnerships with minority and disadvantaged businesses. One great example is the partnership with Connie Balint, the AsianAmerican president of Buckingham Greenery. Since 1986, Buckingham Greenery has provided Philip Morris USA with horticultural services and holiday decorations, as well as plants and floral arrangements for their annual stockholder meetings. Buckingham Greenery is a full-service interior landscaping company with operations in six southeastern states and regional offices throughout the state of Virginia. As a result of the business relationship between the two companies, Philip Morris’ front lobbies have won Buckingham Greenery several Christmas decorating awards, including the National Business Christmas Decorating Award and the National Trade Association 2000 Distinction Award. Other major clients of Buckingham Greenery include the Bank of America, Ethyl Corporation, and Trammell Crow. When asked to assemble the consultant team for the expansion of the Richmond Center, SMBW Architects knew where to find the right partners. The first call went to Janet Daniels, PE, of Daniels & Associates, P.C. Established in 1992, Daniels & Associates provides structural engineering consulting services for renovations and new construction. For the Richmond Center expansion project, Daniels & Associates provided analysis and design for foundation and structural systems, as well as columns, beams, and floor framing. SMBW Architects, a 25-person architectural and interior design firm, has developed an extensive track record of working in the heart of Richmond, often in partnership with MBEs in the City’s professional community. Projects such as the Convention Center, the SunTrust Mortgage headquarters, and the Theater Row Office Building have provided the firm with the opportunity to work closely with both established and emerging firms. The SMBW and Daniels & Associates partnership has extended beyond public sector work to include commercial development and private institution projects. SMBW and Daniels & Associates have successfully competed for several high-profile commissions, including the new headquarters facility of the United Network for Organ Sharing. 20 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND R Richmond Renaissance ichmond Renaissance, Inc. is a bi-racial public-private partnership whose mission is to build greater vitality in the Richmond community — and particularly Downtown — through economic development. As a partnership of the corporate community, the AfricanAmerican community, and Richmond City government, Renaissance is a forum for building consensus in a diverse community. Since 1982, Richmond Renaissance has brought white and African-American business and community leaders together so they might collaborate more effectively in fostering downtown development. This strategy has been highly successful, and Renaissance has contributed substantially to the City’s progress over this 18-year period. Richmond Renaissance is governed by a 26-member executive committee (half white and half African-American), which generally meets every other Friday morning. Renaissance is organized into several very active committees, including Economic Development, Downtown Advocacy, Downtown Special Service Districts, Education, and the relatively new African-American Economic Participation Committee (AAEPC). The AAEPC has developed a strategic plan to guide Renaissance’s efforts in the coming year. The Plan is based on a number of key principles: • • • • • There is a compelling business case for increased African-American participation; Renaissance is uniquely positioned to carry this message to business leaders; We must build on existing programs, not duplicate them; Voluntary quantitative goals can be helpful; Fostering stronger business relationships between white and African-American business owners is important; and, • The plan must be concrete, practical, and results-oriented. The Plan’s Goals: ■ Estimate total African-American buying power in Richmond; then develop and promote the business case for greater use of minority businesses. Coordinate Renaissance activities promoting African-American enterprise with similar programs of the Metropolitan Business League, the Virginia Regional Minority Supplier Development Council, and other organizations, while promoting their efforts among large company CEOs. Identify companies with successful diversity programs and identify their “best practices.” Meet with large company CEOs and other business leaders to encourage the adoption of “best practices” that will result in meaningful increases in the level of their business activity with minority firms. Identify new business opportunities for minorities and facilitate access to capital and other support. Ensure African-American participation in emerging downtown development opportunities. Sponsor events and other activities that will build personal and business relationships between African-Americans and other business executives at the highest levels. ■ ■ ■ ■ ■ ■ PHOTOGRAPHER: LEE BRAUER A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 21 Virginia Regional Minority Supplier Development Council T he Virginia Regional Minority Supplier Development Council (VRMSDC) is a membership organization of major corporations, financial institutions, government agencies, universities, and Virginia-based companies. The primary purpose of VRMSDC is to promote and facilitate the development of business relationships between its members and certified minority-owned enterprises. The goals of VRMSDC are to expand business opportunities for minority-owned companies and to help build a stronger, more equitable community by supporting and promoting minority business development.The VRMSDC has more than 150 corporate members and approximately 325 certified minority businesses. The VRMSDC is one of 38 affiliates of the National Minority Supplier Development Council, which has 3,500 corporate members, including 200 of the top Fortune 500 companies. The VRMSDC is a private, non-profit, 501(c)(3) organization. It is funded by membership dues, certification fees, proceeds from program activities, and shared dues from the national council. Programs and Services: ■ Certification of minority business enterprises after screening, interviews, and site visits; ■ Referrals to corporate members of minority-owned businesses capable of providing quali- ty goods and services at competitive prices in a timely fashion; ■ Support in developing or expanding supplier diversity programs by assisting in the implementation of buyer orientation sessions,“match-maker” and “corporate connection” programs; ■ Expansion capital loans to certified minority-owned companies that have contracts with VRMSDC members through the Business Consortium Fund; ■ An Emergency Loan Fund that provides quick, short-term loans up to $10,000 without charging an application fee or interest; ■ Dissemination of information, through mailings and newsletters, of information of inter- est to minority-owned businesses and corporations looking to increase procurement from minority-owned companies; ■ Training and technical assistance on current issues related to minority business pur- chasing through seminars, conferences, and programs such as “Excellence Together,” a VRMSDC mentor program; ■ Business conferences such as the “Virginia Business Opportunity Fair” and other events, including an annual golf outing; ■ Corporate and minority-owned business directories, profiles, listings and other publica- tions; ■ Scholarship awards to minority business owners or upper management to attend busi- ness executive programs such as the Amos Tuck School of Business at Dartmouth College and the Darden School at the University of Virginia; and ■ Awards and special recognition for outstanding corporate programs in support of minori- ty business development, as well as awards of achievement for minority business owners and corporate representatives. Capitol Square Richmond,Virginia 22 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND 23 Other Resources The Metropolitan Business League The Metropolitan Business League (MBL) is a not-for-profit business membership organization that was organized in 1968.The mission of the MBL is to be the premier organization providing programs, services, leadership, education, training and advocacy for its members, in order to promote the creation of wealth in the minority business community. It is the vision of the MBL to shape the environment in which minority entrepreneurs can create and transfer wealth in the global economy. The MBL hosts a Membership and Awards banquet annually that recognizes and honors MBL members for their accomplishments. Some of the goals of the organization are to promote minority entrepreneurs in the Richmond metropolitan area, to provide useful data and statistics, to serve as a clearinghouse for those members, and to maximize every opportunity to seek economic equity for the membership of the organization. The MBL offers various services to its membership, including access to an extensive database of vendor services and information, legislative tracking, training programs, technical assistance, and minority business executive programs. The MBL recently announced plans to develop a Technology Resource Center, which will be the first high-tech internet center in Jackson Ward. 24 24 A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND Greater Richmond Partnership The Greater Richmond Partnership (GRP) Inc. is an economic development organization representing the counties of Chesterfield, Hanover, Henrico, and the City of Richmond, Virginia. The Partnership provides site location assistance to domestic and foreign companies planning new or expanded facilities. The Partnership is a single point of contact to the network of private sector and state and local government professionals that supports a company facility location decision. The Partnership is organized as a public-private, not-for-profit corporation funded jointly by the four local governments and approximately 300 area businesses. Services are provided at no cost to business prospects and with complete confidentiality. GRP, ranked for the past four years as one of the top ten development groups in the nation, has the responsibility of marketing the Richmond Region to the world. Recently, in order to further diversify the region’s economy, GRP launched an initiative to make a special effort to attract minority-owned companies to Richmond. Greater Richmond Chamber of Commerce The Greater Richmond Chamber of Commerce...Where Richmond Works Together! The Chamber is involved in the region’s economic success through its involvement in business advocacy; economic development; regional partnerships; quality of life issues; small business support; and technology and business information services. The Chamber produces a Community Indicators Report in collaboration with the Greater Richmond Partnership, Inc. and Virginia Commonwealth University. The report provides a profile of the region’s economic performance, livability, safety, and citizenship. Founded in 1867, the Chamber is comprised of 2,000 member businesses in the City of Richmond and the Counties of Chesterfield, Hanover, and Henrico. The Chamber’s community partners include Workforce One; Youth Matters; Vision 20/10; Leadership Metro Richmond; the Chamber Foundation; Small Business Development Center; Employment Assistance Team; Regional Transportation Advocacy Board; and the World Affairs Council. The Chamber’s web site, www.grcc.com is viewed daily by thousands of people seeking information on Chamber events, current legislation, resource links to community web sites, and a directory of Chamber membership. The Greater Richmond Chamber of Commerce also publishes a Minority Business Directory in cooperation with the Metropolitan Business League. The directory lists businesses owned by ethnic and racial minorities, one of America’s fastest growing business segments. It is distributed to contacts around the world as a way to promote minority businesses throughout the region. A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND Richmond Renaissance, Inc. Executive Committee John W. Bates, III, Esq. Chairman of the Board Roger L. Gregory, Esq. Vice Chairman & Chairman of the Executive Committee John B. Adams Beverley Armstrong Hon. Viola O. Baskerville J. Alfred Broaddus Renard A. Charity, MD Hon. Sa’ad El-Amin Jacqueline G. Epps, Esq. Thomas F. Farrell, II Dr. Bernard W. Franklin Rev. F. Todd Gray Brenton S. Halsey Monroe E. Harris, Jr., DMD C.T. Hill Calvin D. Jamison, Ed.D. Hon. Rev. Dwight C. Jones Ebbert E. Jones Lerla G. Joseph, MD Hon. Timothy M. Kaine, Esq. Hon. Henry L. Marsh, Esq. Earl H. McClenney, Jr., J.D. Mark R. Merhige James Murray John W. Pretlow Robert W. Shinn Hugh R. Stallard Marilyn Tavenner Philip Thompson Dr. Eugene P. Trani James E. Ukrop Marilyn H. West Virginia Regional Minority Supplier Development Council Board of Directors Charles W. Mason Chairman Gregory Huelsman Vice Chairman Ron Allen Lowell Carrington Bill Cooper Tony Cusack Vernestine Davis Benita Fortner Rhonda J. Gebicke Ed Gibbs Lillian Handy Timothy M. Hanger Jay Inouye Art Johnson Dr. Donald W. Jones James D. Jones Jeff Jones Bruce Kilkowski Adelia G. Leon Steve Lerman Debbye Mahan Dan A. Niccolucci Rita C. Ricks Kevin Russell Murray J. Schooner Ronald S. Simmons Cynthia Turner A COMMITMENT TO SUPPLIER DIVERSITY IN RICHMOND