CONNECTIONS
MONTHLY NEWSLETTER
www.scmsdc.org
IN THIS ISSUE
December 2014
The year in review
The year in review Special thanks MBOD 2015 Supplier diversity biz MBE spotlight: Sanders, Roberts & Jewett, LLP Smart tips for MBEs News briefs
UPCOMING EVENTS
City Toastmasters Meeting January 8, 22 - 9 to 11 a.m. SCMSDC Headquarters
Participants will hone speaking and leadership skills in a friendly and non-threatening atmosphere. The SCMSDC chapter caters to business owners and their employees. Contact: Natalie Masiello, nmasiello@scmsdc.org or 213-689-6963.
Los Angeles Business Journal 2015 Latino Business Awards January 20 New LA Hotel Downtown, Los Angeles The Latin Business Association is once again proud to collaborate with LBA Media Partner The Los Angeles Business Journal in presenting the 2015 Latino
In 2014, SCMSDC enjoyed record attendance at its events, connected more minority business enterprises (MBEs) with corporate members for potential business opportunities, and honored a minority entrepreneur with its prestigious Leadership Award – marking only the second time in 30 years that an MBE received this honor. These were among the year’s highlights. According to SCMSDC President Virginia Gomez, “2014 was another busy and productive year as SCMSDC continued to engage in activities to advocate on behalf of MBEs and provide a critical link between them and corporate members.” Here’s a look back at 2014: • As an affiliate of the National Minority Supplier Development Council (NMSDC), SCMSDC worked with the national council as it completed its restructuring aimed at improving efficiencies. Among other things, the restructuring, decreased 36 regional councils to 24, instituted a new financial grant distribution to the merged councils, created an enterprise-wide national online certification application and new national database, eliminated reciprocal certification by making NMSDC certification through the councils a national certification while offering subscription services to continue engagement by MBEs certified by another council besides their home councils, implemented key perfor-
Business Awards Luncheon. The event honors businesses within the Latino business community who are setting the example for excellence throughout Los Angeles County. For more details, visit www.lbausa.com.
Small Business & Emerging Technologies Conference and Tech Fair January 27 Live Stream/FCC Headquarters Washington, DC Presented by the Federal Communications Commission, this event will focus on innovation by fledgling entrepreneurs in information technology and telecomm. Small, minority, and women-owned tech start-ups will be highlighted. Focus will be on challenges that tech start-ups face, as well as some of the more specific issues that often preclude technical innovation in the minority business community. For more information, contact OCBO at (202) 418-0990 or via email at Techfair@fcc.gov . Persons interested in participating via the internet may do so by logging on to www.fcc.gov/ocbo.
MBE Orientation January 29 - 2 to 4 p.m. SCMSDC Headquarters Learn how to best leverage your MBE certification. Great for newly-certified, those who are pending certification, and those MBEs who have been certified but would like to get connected. Free event! Last Thursday of each month. Visit www.scmsdc.org for more events.
mance indicators to capture metrics networkwide, and created new regional council logos that link back to the national entity.
MBOD 2014 seminars were once again popular with attendees.
• Minority Business Opportunity Day (MBOD) had more than 1,100 attendees, proving the event remains an excellent forum for corporate members to find qualified diverse businesses with whom to form potential partnerships. One of three major SCMSDC signature events. MBOD 2014 featured a popular exhibit fair and engaging seminars on such topics as achieving a competitive advantage in a global marketplace, how MBEs doing business with Toyota “made it,” and igniting your business with social media. Attendees were pleasantly surprised to listen to powerful women share their experience and how they became women of “Gravitas.” The ever-popular matchmaking activity provided the forum to create relationships between corporations seeking MBEs that could potentially become suppliers in their supply chain. Johnson Controls Inc (JCI) presented a workshop for corporate members on the future of corporate supplier diversity programs and best practices used by JCI, considered among the top-ranking national supplier diversity experts. And, for the sixth consecutive year, Toyota served as title sponsor.
MBE 2 MBE Open Houses drew large crowds in 2014.
• SCMSDC’s Minority Business Enterprise Input Committee (MBEIC) held six MBE to MBE Open Houses throughout Southern California, attracting more than 400 MBEs and representatives from Nestle, The Walt Disney Company, Ricoh USA, Southern California Edison, Verizon, MUFG Union Bank, Fluor Corp., Walmart and the City of Los Angeles. The events gave MBEs the opportunity to meet other entrepreneurs for an evening of premier business networking. Event hosts included PromoShop; Clear Image Printing; Los Angeles Department of Water and Power; Johnson Controls, Inc.; Sanders, Roberts & Jewett; AlvardoSmith; and FCI Management. • SCMSDC recognized 38 MBEs – the highest number of
nominees in recent years -- for outstanding performance with corporate members at its Supplier of the Year Awards luncheon. Awards were given in four categories, based on gross annual sales, to: Cho Estrada Communications, a provider of public relations consulting, writing and editorial services; SuperbTech, Inc., a contract and staffing services company; IW Group, an advertising production, public relations, event coordination, community outreach and media buying services firm, which went on to win NMSDC’s Western Sector Supplier of the Year Award; and Walton Isaacson, a full-service advertising agency. American Honda was the event’s title sponsor for the 24th straight year. • SCMSDC added a new member to its board – Richard “Rick” Hobbs, director of Supply Management and Supplier Diversity at Southern California Gas Co. • SCMSDC’s Toastmasters program continued to help MBEs hone their public speaking and presentation skills. Held twice a month at the council’s office in downtown Los Angeles, the program offers learn-by-doing workshops where participants, both seasoned and novices, improved their speaking and leadership skills in a Toastmaster meetings encourfriendly, non-threatening aged both personal and profesatmosphere. sional growth. • The council honored the “best of the best” in supplier diversity at its Leadership Excellence Awards. The Leadership Award was presented to Bill Imada, founder, chairman and chief collaboration officer of IW Group for his passion in supporting minority businesses and creating new initiatives and institutions that focus on ethnic minority economic development. For the second straight year, SCMSDC presented its Corporation of the Year Award to Southern California Gas Co. and its Corporate Innovation Award to Northrop Grumman Corp. Verizon was the recipient of the Corporate Ambassador Award. • Two supplier diversity icons -- Tony Piazza, assistant vice president of Human Resources and Administration, American Honda Motor Co., and Board Chair Joe Alderete, director of Supplier Diversity and Development at Southern California Edison -- retired from SCMSDC’s board. Together, they helped hundreds of suppliers grow from small businesses to large companies, supported minority advocacy groups to enable these organizations to deliver programs and services benefiting small, diverse businesses and provided the council as well as sister advocacy groups, with years of invaluable input and guidance. SCMSDC honored Piazza with its “Spirit of Diversity” award at the Supplier of the Year Awards luncheon and Alderete with its “Lifetime Achievement Award” at its
Leadership Excellence/Corporation of the Year Awards dinner. • SCMSDC held its monthly MBE Orientation sessions, attracting more than 400 new, pending and seasoned MBEs. These sessions provided expert advice on how to leverage MBE certification, better understanding of council programs and services, and an opportunity for attendees to ask questions relevant to available and potential business opportunities. It also afforded an opportunity to meet MBE colleagues and peers, and the possibility of teaming and/or utilizing one another’s products and services. SCMSDC facilitated these sessions, while members of the Minority Business Enterprise Input Committee (MBEIC) and select corporate members shared insight, knowledge and experience. • Other notable news: Kaiser Permanente and Bank of America became the newest members of the Billion Dollar Roundtable and joined 18 other U.S.-based corporations that spend $1 MBE Orientations provided an billion or more annually minority and opportunity for MBEs to become from firms. better acquainted with SCMSDC and women-owned Also, FCI Management its services. Consultants, an SCMSDC-certified MBE and a full service energy/utility consulting company, received NMSDC’s Corporate Plus designation, making FCI among 100 MBEs with the proven capability to handle national contracts for major corporations. SCMSDC’s strategy in 2015 is growth – growth in its number of corporate membership and certified MBEs; growth in the number of business matchmaking forums; growth in its offerings to the various levels (MBE classifications by annual revenue) and growth in its partnership with community business organizations. Watch for our January 2015 Connections issue for details. In the interim, keep up with the latest news through this newsletter or by following the council on its various social media outlets.
Special Thanks The council could not have achieved so much success in 2014 without the help of many individuals and companies who provided financial contributions through sponsorships, contributions, in-kind services, expertise, insight and guidance. We appreciate everyone who was instrumental in making 2014 a successful, productive year, and hope you will work with us as we continue to raise the bar.
Special thanks to the following: BOARD OF DIRECTORS Joseph F. Alderete, Southern California Edison Derek Johnson, The Walt Disney Company Robert Dyer, Wal-Mart Charles Harmon, American Honda Motor Co. Vicky Harper-Hall, Northrop Grumman Corporation Rick Hobbs, Southern California Gas Company Albert BW Louis, CPSM, Johnson Controls, Inc. Mario Munoz, Anthem Monetta Stephens, Toyota Ying McGuire, Technologyo Integration Group (TIG) Joe Blackstone, Blackstone Consulting, Inc. Bonnie Nijst, ZEESMAN Virginia Gomez, SCMSDC BOARD CERTIFICATION COMMITTEE Rose Cote, Los Angeles World Airports Michelle Chieks, Southern California Gas Co. Yolanda Padilla, Southern California Gas Co. MINORITY BUSINESS ENTERPRISE INPUT COMMITTEE Chair, Bonnie Nijst, ZEESMAN Immediate Past Chair, Patricia Watts, FCI Management Consultants Emeritus Chair, Linda Stone, APR Consulting Vice Chair, Memo Kahan, PromoShop Vice Chair, Denise Peoples, Peoples Choice Staffing Secretary, Trinidad Martinez, TLM Petro Labor Force Mark Cordova, Cordova Bolt, Inc. Cathy Hsieh, Kambrian Corporation Rita Kalwani, KAL Architects Sujata Kamdar, GBS Linens Anita Kantak, Applied-Research West, Inc. Sanjay Kucheria, Trinus Corp. Phillip Ramos, Jr., Philatron Wire and Cable Anita Garcia Ron, BriteWorks Ruben Smith, AlvaradoSmith MAJOR EVENTS (title and annual sponsors) American Honda Motor Co. Southern California Edison Southern California Gas Co. Anthem The Walt Disney Company Chevron Toyota NBCUniversal Wells Fargo Northrop Grumman Corp. SPECIAL CONTRIBUTIONS AlvaradoSmith Anahau Energy Apex Computer Systems APR Consulting ASV AT&T
Bank of America Beverly Kuykendahl Comm’r Monica Rodriguez CR&A Custom East West Bank Fresh Events
IW Group Los Angeles World Airports MBDA Los Angeles Myles Kovacs Nestle PGI
Ruiz Strategies Shelia Coates Technology Integration Group USC Verizon Walmart ZEESMAN
PROGRAMS Citi/USC CINTAS
Johnson Controls, Inc. Sanders Roberts & Jewett LLP
CORPORATION OF THE YEAR CO-CHAIRS Joe Blackstone, Blackstone Consulting, Inc. Rita Kalwani, KAL Architects Sujata Kamdar, GBS Linens Sanjay Kucheria, Trinus Corp. Bonnie Nijst, ZEESMAN Denise Peoples, Peoples Choice Staffing Phillip Ramos, Jr., Philatron Wire and Cable Anita Garcia Ron, BriteWorks Patricia Watts, FCI Management Consultants CORPORATION OF THE YEAR SELECTION COMMITTEE MBEIC Chair, Bonnie Nijst, ZEESMAN MBEIC Vice Chair, Denise Peoples, Peoples Choice Staffing Sue Bhatia, Rose International, Inc. Greg Craig, Anahau Energy, LLC Dennis Huang, Executive Director, Asian Business Assn. Ying McGuire, Technology Integration Group Scott Brill, MBEIC Vice Chair, KBM Facility Solutions Tracy Stanhoff, President, American Indian Chamber of Commerce MBOD SPECIAL EVENTS COMMITTEE Monetta Stephens, Toyota Aura McCracken, NBCUniversal Karen Blackwell, Nestle Bill Imada, IW Group Michele Smith-Ballard, Turner Valerie Lertyaovarit, SoCal Gas Bonnie Nijst, ZEESMAN
We apologize for any omission of anyone who played a role in making 2014 one of our most successful years to date. A sincere and heartfelt thanks to all MBEs and corporate members for your continued support of our council!
What’s new with MBOD 2015 If you’ve been to SCMSDC’s Minority Business Opportunity Day, you know it’s a must-attend event for minority business enterprises (MBEs) interested in procurement opportunities with major corporations and organizations, and for corporate members who are committed to working with more diverse suppliers. And this year, the event, which will be held March 3-4 at the Sheraton Universal Hotel in Universal City, is shaping up to be one of the most successful yet. MBOD 2015 brings: • The popular exhibit fair – one of the largest of its kind on the west coast - extended by popular demand to a full day on March 4. • Meaningful, more targeted matchmaking to ensure MBEs are meeting with the right corporate representatives (and vice- versa). Besides a more thorough online matchmaking process, changes will be made to the exhibit fair show floor to enhance matchmaking potential. • The opportunity to sign up for SCMSDC’s other major events (Supplier of the Year Awards and Leadership Excellence Awards) at a discounted price that will only be available at MBOD. In addition, here’s a look at some of MBOD’s workshops and seminars: • “Buy American” seminar addressing quality control and the need to satisfy the requirements of federal contracts • Contract readiness workshop focusing on what goes wrong when a company isn’t prepared to deliver on a contract…and how suppliers can avoid failure in satisfying customers’ needs • “Passing the Torch” seminar exploring options to maintain your business legacy • Teaming, strategic alliances and other collaboration techniques and how current entrepreneurial mindsets about these contract strategies often ensure “no growth”
MBOD 2014 exihibit fair.
Additional details on registration and sponsorship opportunities will be in the next issue of Connections. For more information, go to www.scmsdc.org.
Supplier diversity biz Emma Maxey, Golden State Water Creating Golden State Water Company’s (GSWC) supplier diversity program from scratch, Emma Maxey looked to other utilities with robust supplier diversity programs and emulated what they did, albeit on a smaller scale. That was 10 years ago. Today, the company -- which provides water service to about 257,000 customers throughout 10 counties in Northern, Coastal and Southern California, and distributes electricity to approximately 24,000 customers in the Big Bear area through its Bear Valley Electric Service division -- has a sound supplier diversity program of its own. In 2013, spend with women-, minorityand disabled-veteran business enterEmma Maxey prises (WMDVBE) reached $30.5 million, or 25.7 percent, up from $7.5 million, or 7.5 percent, in 2004. “We had nothing when we started in 2003 -- only our commitment,” says Maxey, GSWC’s supplier diversity manager and a 35-year veteran of the company. “Standing on the shoulders of other utilities’ helped us to build on what they had started and implemented some of those best practices we are utilizing today to continue to develop opportunities for our supplier diversity program.” In the past, GSWC employees would have been hard-pressed to explain supplier diversity. Today, “every business unit is aware of our program,” she says, adding the company launched its internal Supplier Diversity Council in 2013. The team, which meets bimonthly and is comprised of GSWC executives and senior level managers, increases awareness of supplier diversity and opportunities for inclusion of diverse suppliers in the bidding process. Here are some of Maxey’s observations on: Working with Golden State Water: “Helping our diverse suppliers to navigate through our qualification portal and placed in a position for contracting opportunities is an important aspect of my job,” says Maxey. “When there’s a sourcing opportunity, I make sure that diverse suppliers are included in the bidding process. To get there, suppliers must provide good references and financial stability, core competency in the supplier’s line of business, clean occupational safety records, appropriate licenses and adequate insurance. Once there, be responsive to all requests for proposals, provide competitive pricing and value added capabilities and make sure applicable certifications are current.” Common mistakes by diverse businesses: “Many new suppliers are excited and serious about the opportunity to work within our industry. Because we are small,
it is difficult to offer as many opportunities found in larger industries. The frustration some may experience -- just getting their paperwork in order and then, not offered a contract within the time frame they would like -- causes them to give up too soon. We stress patience and persistence, and encourage suppliers to keep abreast of our company procurement needs. In a number of cases, by the time an opportunity comes around, the supplier’s business may not be the same as when we originally met, and thus, may not be eligible for the same opportunities as before.” Rewards of her job. “When I attend various events, I often hear from suppliers who say, ‘Thanks so much -because you helped me and steered me in the right direction, I have a contract.’ That’s a proud moment for me when I see suppliers getting the opportunities they so deserve and not just with Golden State Water, but any of the regulated utilities. They were patient, persistent and prepared when those opportunities presented themselves.”
MBE spotlight: Sanders, Roberts & Jewett, LLP
Success with a different model
In 2008, Justin Sanders was a lawyer at a global law firm in downtown Los Angeles when he decided to walk away to start his own practice. He took a chance that his “big firm” background, progressive and value-added approach with clients, and alternative fee structure would serve him well. He was right. Today, his SCMSDC-certified firm, Sanders, Roberts & Jewett, LLP -- which includes partners Reginald Roberts and Bradley Jewett, who are also alumni of large law firms – is located a few blocks from his former employer and offers the same top legal services. The firm specializes in business, employment and real estate litigation and criminal defense law, and counts Fortune 500 corporations, such as Ford Motor Co. and Toyota Motor Sales, local governments and nonprofit organizations among its clients. What’s unique about Sanders, Roberts & Jewett? According to Sanders, it has the expertise of a large corporate law practice with the agility and cost structure of a smaller one. “Our model is different. We can charge less than a large law firm because we are technology-focused with streamlined operations and greater cost efficiencies, but we provide the same quality work.”
Justin Sanders (left) with Reginald Roberts, Jr.
“While we were working at large law firms, we recognized the importance of the bottom line to our clients, particularly during the economic downturn,” adds Roberts, who joined Sanders’ practice in 2011. “Our firms were billing us at hundreds of dollars an hour more than what we were charging and we could see that clients wanted a more affordable, more fair rate. A business necessity created an opportunity for a firm like ours.” Establishing trust and building relationships When people need a lawyer, they’re often in an uncomfortable situation and facing a problem they can’t solve on their own, so lawyer selection is often based on trust. “It’s not a straight cost benefit analysis -- like a widget -- where you can compare prices and go with the lower cost,” says Roberts. “Not only do you have to have a cost benefit, but there’s also a trust and relationship component. But you can’t have a cost benefit unless you get past the relationship and trust benefit.” To build relationships with potential clients, Sanders, Roberts & Jewett representatives began attending SCMSDC events last year, which opened the door to introductions to corporate members and other minority business enterprises (MBEs). Soon after becoming certified in 2014, the firm hosted an MBE 2 MBE Open House, which provides MBEs with opportunities to network with each other and select corporate members. “We’re focused on building our relationship and involvement with SCMSDC and transitioning some of our relationships into clients,” he adds. “One of the central components of SCMSDC that I appreciate is that you get involved, make relationships, and people have a vested interest in helping you succeed.” Keys to success “Individually, we are all dedicated to being the best in our craft,” Roberts says. “Over time, that has served us well. The team component is also essential to the success of our firm. We have developed a strong reputation, received good responses from people we represent as well as respect. “In addition, we recognize talent and use our skills to build something we believe serves a greater good. That’s a tremendous benefit both personally and professionally. We have something special and we’re building on that,” he adds.
Smart tips for MBEs Year-end tax tips
The end of the year is fast approaching, but there’s still time to make sure you end fiscally strong by making some changes to minimize your business taxes. Taking action now can result in significant savings when you
file your taxes in the spring. Before you ring in the New Year, consider taking the following steps: • Get an accurate picture of your finances. Review your books and make sure the data is accurate and up-to-date. If you have an accountant, spend time reviewing the information with him or her and identify any missing items. • Defer income. After you review your books, decide if you want to defer December payments until January so these count for 2015 instead of 2014. You may want to hold off on sending year-end invoices. Doing so would cut your tax bill this year. • Buy equipment, supplies, inventory, etc. If you are planning to buy new equipment and office supplies, stock up on these items and use them now before the year is over to maximize deductions. • Make contributions to a retirement plan. Before Dec. 31, make payments to a retirement plan or set up a retirement account. This will reduce your income for this year. A financial advisor can advise you on what plan is ideal for your business. • Give to charity. Gifts to charity – either monetary or donated items – helps nonprofit organizations and can also help your business finances. When you donate, make sure to get a receipt for your records. Lower your taxes with these easy steps. If you start organizing your records now, you eliminate stress when it’s time to work on your taxes.
BE HEARD! News Briefs Two MBEs recognized Congratulations to two SCMSDC-certified minority business enterprises (MBEs) who were recently honored at Regional Hispanic Institute/Regional Hispanic Chamber of Commerce’s Mujeres Del Año Awards Gala. The event celebrated the outstanding demonstration of character, commitment, civility, community, and citizenship of “mujeres,” or women, in the community. Honorees included Carmen Rad of CR&A Custom, a large format digital printing firm based in Los Angeles, recipient of “Mujer Empresaria,” or “Businesswoman of the Year;” and Maria Bastian Thompson of Agile Sourcing Partners, an integrated supply company headquartered in Corona that provides sourcing and material supply solutions, recipient of “Mujer Diversidad,” or “Woman of Diversity” award.
Do you have a story idea or would like to author an article for Connections? We'd love to hear from you! Contact Vicki Cho Estrada at vicki@choestrada.com.
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