American DBE Magazine - 2022 Issue III

Walking the Talk—SEA Managing Director Values Substance over Symbolism

Most public agencies and larger corporations across America have a policy, program or regulation designed to increase Diversity, Equity and Inclusion (DEI) within the organization. These initiatives often include strategies to increase the hiring and promotion of people from underrepresented groups; and to increase spending with businesses owned by minorities, women, and other targeted populations.

However, research is showing that these efforts aren’t doing much to move the needle in both the employment and contracting space, even after numerous pledges of increased DEI efforts by many organizations, following the civil unrest after the George Floyd killing in 2020. It appears that much of the rhetoric since 2020 was long on talk, but short on action.

For instance, the Wall Street Journal reported in November 2021 that America’s 50 biggest public companies and their foundations collectively committed at least $49.5 billion for equity and inclusion activities since the civil unrest of May 2020. However, more than 90 percent of that amount — $45.2 billion — was allocated to areas they could benefit from such as loans or investments; and only $4.2 billion was for grants not creating a direct financial benefit.

These grant funds, which were to be disbursed over periods as long as a decade, represented less than 1 percent of the $525.6 billion in net income earned by the 50 companies in the most recent year, according to data from S&P Global Market Intelligence. So, while many people hoped that major organizations across America were truly committed to change, it appears that the many commercials, press releases and corporate statements lacked the accountability to produce meaningful results.

Seattle-Tacoma International Airport Managing Director Lance Lyttle

Seattle-Tacoma International Airport (SEA) Managing Director Lance Lyttle recognizes the fallacy of empty rhetoric as he leads the one of the nation’s largest airports. Lyttle joined SEA in 2016 after holding senior leadership positions at the Atlanta Hartsfield-Jackson International Airport and the Houston George Bush Intercontinental Airport, two airports often recognized for their demonstrated commitment to Diversity & Inclusion. A hallmark of Lyttle’s leadership approach is leading by example, through modeling actions he expects from those under his leadership. “It’s not just symbolism, but substance that’s important. Things like mission and vision statements are good, and you need those, but they are symbols. Leaders must lead by example and produce results,” Lyttle said.

During his tenure at the airport, operated by the Port of Seattle, SEA has nearly tripled the number of minority and women businesses participating in airport contracts and more than doubled payments to M/WBE firms. The airport also has created innovative programs to increase Airport Concession Disadvantaged Business Enterprises operating in the airport terminal while consistently exceeding the airport’s ACDBE goal of 21.5%. “Results are the important thing for me. We want to set and achieve goals,” Lyttle said.

Creating Intentional Focus

Lyttle has a direct and clear-cut vision for diversity and inclusion at SEA, “It is for the makeup of the airport and its contractor base to be a reflection of the region the airport serves,” he said. His vision extends through all levels of the organization from leadership to the staff working throughout the airport. Lyttle knows that achieving this vision takes a consistent and intentional approach that is communicated through the entire organization through policies and procedures employees must follow.

One practice SEA uses to ensure equity in hiring committees and contractor selection committees is striving to have employees serving on these committees to complete unconscious bias training. A related practice is striving to have members of the committees selected from a diverse group of employees, consisting of peers with equal levels of authority in the organization. Lyttle said: “If a panel has the manager or director on a panel with people that report to them, that panel will bend towards the decision of the leader. We want our panels to be made up of a group of peers.”

Another policy for creating greater opportunities for businesses owned by minorities and women is ensuring that every contract that has federal dollars has a requirement for a Disadvantaged Business Enterprise (DBE) goal included in the contract language. “We created a grants manager to apply for federal grants and it has been extremely successful for us,” Lyttle said. The grants are typically used as part of major projects facilitating our DBE goals. This initiative increased the number of contracts available for participation by diverse firms and increased the number of projects containing a contract goal requiring prime contractors to offer opportunities to DBEs.

A rendering of the exterior of the Seattle-Tacoma International Airport C Concourse Expansion.

These strategies have led to an increase the number of DBEs participating in Port of Seattle contracts during Lyttle’s tenure from 118 firms in 2016 to 344 firm in 2021. It also raised DBE participation from 5.2% of contractor payments in 2016 to more than 12% in 2021. Although this growth covers the entire Port of Seattle agency, the increase is primarily tied to an increased number of DBEs participating in SEA capital development efforts.

While Lyttle is pleased with the growth in opportunities for diverse firms, he says there is still more that needs to be done. The airport is currently working on a WMBE study (Women-owned and Minority-owned Business Enterprise) to review the airport’s program to identify barriers to entry for diverse firms and to make recommendations for improvement. The recommendations should help SEA reach its current DBE goal of 15% soon.

Performing Intentional Outreach

SEA leaders know the first step to increasing contracting diversity is increasing the number of firms ready, willing and able to participate in procurement opportunities; and then increasing these firm’s level of understanding of how to do business with the airport successfully. SEA’s parent agency, The Port of Seattle, created the Small Business Generator Program (PortGen) in 2016 to achieve these two objectives. PortGen hosts quarterly outreach and training meetings to assist firms in navigating the registration and certification process – and to learn from staff from different areas of the agency about business opportunities and how to do business at the Port of Seattle. The program offers guidance and information about becoming certified as a Disadvantaged Business Enterprise, Airport Concessions Disadvantaged Business Enterprise, and how to participate in the agency’s local Minority and Women Business Enterprise Program.

Another component of the agency’s outreach strategy is targeting efforts toward different segments of the surrounding community to attract a diverse mix of businesses. SEA places advertisements and notices in newspapers serving different minority publications and regularly participates in programs and events in communities across the region to connect with potential business partners.

(From left) Airport Minority Advisory Council (AMAC) Chair Ricky Smith, AMAC President & CEO Eboni Wimbush, Director of the USDOT Office of Small and Disadvantaged Business Utilization Shelby Scales, and SEA Managing Director Lance Lyttle at the AMAC S.O.A.R.S. program held at SEA in August 2022.

In addition to these internal strategies, SEA recently partnered with the Airport Minority Advisory Council (AMAC), the Portland International Airport, Denver International Airport, and the Salt Lake City International Airport to host the AMAC S.O.A.R.S. (Sharing Opportunities & Resources in Aviation Summit) in August 2022. The program united major airports in the Pacific Northwest Region, regional airports, and corporations to provide an overview of current and upcoming projects, contract considerations and best practices for securing new business in the airport industry. The program was the first of its kind and allowed hundreds of businesses to attend one event to learn about opportunities at several airports, market their company to potential business partners, and network with local and national airport officials.

Achieving Intentional Growth

Lyttle expects business opportunities for diverse firms to grow with the ongoing expansion and modernization of the airport. SEA is preparing to start its S Concourse Evolution project to invest approximately $1 billion to modernize and upgrade the facility. The airport anticipates selecting the project manager/construction manager team in early 2023 and beginning construction in 2025. The project will improve the structure and mechanical systems of the facility, add additional retail space for concessions, and modernize the building that was initially opened in 1973.

This major project will add to an already robust schedule of capital improvements planned during the near future to improve the domestic and airside facilities. Lyttle said: “Opportunities to do business are always at an airport because we are always improving to keep up with the growth in passengers. Our current capital plan is between $8 billion and $10 billion, so there are many opportunities for M/WBE firms.”

SEA Acting Aviation Chief Operating Officer Dawn Hunter speaks to potential airport concession operators in the airport terminal.

Lyttle said he is pleased with the progress the airport is making and believes the policies and initiatives taken to elevate Diversity & Inclusion throughout the airport are bearing fruit. He is especially proud of the success of the concessions program to expand opportunities to diverse groups previously absent from the airport. “We have created a number of firsts in our concessions program. We added our first Native American operator, our first Latino operator, and just added our first African-owned concession to the terminal using our Kiosk Program,” Lyttle said.

These successes show the results of the airport’s commitment to expanding opportunities. Lyttle credits the leadership he receives from the Port of Seattle Commissioners supporting his effort to create innovative and aggressive actions to bring meaningful change to the airport. He believes these actions are the airport’s true purpose in the Seattle region. Lyttle said, “What we do is run an airport, but why we do it is to achieve a higher moral purpose; and that is to increase economic growth and opportunity in this region, especially for the underserved community and disadvantaged businesses.”