17 Days
Certification time quickest ever average
$340,000 New Grant Revenue
3
The number of people who served as Chair of our Board in 2009 because of the chaos in the automotive industry
$3 Million
42%
Increase in Event profitability from 2008
Partnership with Kauffman Foundation
48
$2.6 Billion
New Corporate Members from June to December 2009
29
0
MBE Spend Increased from 2008
The 29 of our fifty largest corporate members filed for bankruptcy in 2009
94.6%
Membership Satisfaction
The number of corporations and MBE’s that exercised the money back guarantee that is offer if not satisfied
2
Meetings with President Obama about Minority Business Development
$400,000
The amount of the budget gap we closed
Michigan Minority Supplier Development Council 2010 Council of the Year Application
table of contents I. Presidents Message And Overview (Page 5) • MMSDC Board Of Directors • MMSDC Staff Directory II. 2010 Council Of The Year Application (page 10-27) III. Application Narratives (page 28) • Corporate Membership (Page 30-33) A1. Number Of NMSDC Local Corporate Members; Explain Why Your Council Should Receive Maximum Points: A2. Number Of National Corporate Members; Explain Why Your Council Should Receive Maximum Points: • Certified Minority Business Enterprises (Page 35-36) B. Number Of Certified Suppliers; Why Your Council Should Receive Maximum Points: • Minority Purchasing Dollars (Page 38-39) C. Please Discuss Your Council’s Role An Impact On MBE Contracts And Dollars Generated: • Educational Programs (Page 41-48) D1. Please Share What You Believe Was The Impact Of Your Educational Programs On Your MBEs D2. Please Share What You Believe Was The Benefit(S) Derived From Co-Sponsored/Co-Participation Event(s): D3. New Educational Programs: • Matchmakers (Page 50-51) E. 2009 Matchmakers Activities • New/Innovative Programs (Page 53) F. Description And Results Of New/Innovative Programs Developed By Your Council Last Year (2009): • MBEIC Committee Activities (Page 55) I. MBEIC Projects • Staff Involvement (Page 57-60) J. Involvement with other Agencies or Community Organizations • Presidents, Chairs & MBEIC Chairs Activities (Page 62-63) K. MMSDC Leadership Activities, Support & Involvement • Recognition (Page 65-67) L. Awards and Recognition • Support And Marketing Of Business Consortium Fund (BCF) (Page 69) M. BCF Support • Encouraging MBEs to Do Business with Other MBEs (Page 71) N1. MBE to MBE • Communication/Coordination With NMSDC (Page 73) O. Involvement With NMSDC • Challenges Confronting Your Minority Businesses (Page 75-76) P. Support Of MBEs During Economic Downturn: IV. Attendance Sheets (See Enclosed Disc) D1. Eduational Programs Attendance Sheets • MBE Certification Orientation • MBE Certification Orientation • MBE Certification Orientation Michigan Minority Supplier Development Council
1
2010 Council of the Year Application
table of contents (cont’d) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
MBE Certification Orientation MBE Economic Forum MBE Certification Orientation – Mid Michigan MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation MMPC Professional Development Opening Session “W.E. John Institute For Employment Research” Seminar MMPC Professional Development “Access To Capital” Seminar MMPC Professional Development “The Return On Investment (ROI) Of Supplier Diversity” MMPC Professional Development “Corporate/MBE Roundtable Networking” MMPC Professional Development “Moving Supplier Diversity Beyond Compliance To Value Creation” MMPC Professional Development “Integrating Supplier Divesity Into Your Company’s Sales Process” MMPC Professional Development “How To Manage Risk In A Down Economy” MMPC Professional Development “Doing Business In West Africa” MMPC Professional Development “Doing Business In A Global Marketplace” MBE Certification Orientation MBE Certification Orientation – Mid Michigan Minority Manufacturers Diversification Summit MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation North American Industrial Classification System Workshop “Everything You Need To Know About NAICS Codes” MBE Certification Orientation MBE Certification Orientation MBEC Access To Capital For Minority Businesses In Troubled Economic Times MBE Certification Orientation Annual Education Immersion Day MBE Certification Orientation MBE Certification Orientation – Mid Michigan MBE Certification Orientation MBE Certification Orientation The Use Of Strategic Alliances & Joint Ventures As Tactics To Thrive In The Global Economy MBE Certification Orientation ARRA Business To Business Outreach ARRA Press Conference And Networking MBE Certification Orientation Doing Business With The Federal Governement: GSA Schedules and ARRA MMBEC/ARRA Business To Business Outreach MBE Certification Orientation ARRA Corporate Bridges MMBEC/ARRA Business To Business Outreach
Michigan Minority Supplier Development Council
2
2010 Council of the Year Application
table of contents (cont’d) E. Matchmaker Attendance Sheets • Wayne State Project ONE Module • Wayne State Project ONE Module • Walbridge Project ONE Module • Spectrum Health Project ONE Module • Mass Transportation Authority (MTA)/MMSDC – General Contractor Outreach & Information Forum • Roundtable Networking • MIC Commercial Sector • Wayne State Project ONE Module • Marketing Enhancement Series Tradeshows (Pilot) • Pistons Business To Business After-Hours • Wayne State Project ONE Module • MMSDC/MMBEC/MDOT Prime Contractors Outreach • MMSDC/MMBEC/MDOT Prime Contractors Outreach • Walbridge Project ONE Module • MMPC And Trade Fair • Wayne State Project ONE Module • MBE To MBE Roundtable Networking • Minority Manufacturers Diversification Summit • Annual Invitational Golf Tournament • Aerospace Interiors Pre-Marketing MBE Session • Walbridge Project ONE Module • Henry Ford Health System Project ONE Module • Accident Fund Project ONE Module • Alberici Constructors Project ONE Module • Walbridge Project ONE Module • Mid Michigan/Flint/Saginaw/Bay Regional Roundtable • Accident Fund Project ONE Module • Henry Ford Health System/Alberici Constructors/Walbridge Project ONE Module • Supplier Diversity Summit • Accident Fund Project ONE Module • Mid Michigan/Flint/Saginaw/Bay Regional Roundtable • MMBEC/ARRA Business To Business Outreach • MIC Commercial Sector • ARRA Press Conference & Networking • MIC Wholesale Distributor Sector • MIC Professional Services Sector • MMBEC/ARRA Business To Business Outreach • Accident Fund Project ONE Module • MMBEC/ARRA Business To Business Outreach • Mid Michigan/Flint/Saginaw/Bay Regional Roundtable • Accident Fund Project ONE Module
Michigan Minority Supplier Development Council
3
2010 Council of the Year Application
table of contents (cont’d) F. New/Innovative Programs Attendance Sheets • MBE Economic Forum • MMSDC Minority Business Roundtable • Marketing Enhancement Series Tradeshows (Pilot) • Minority Manufacturers Diversification Summit • Summer Corporate Membership Networking Session • MMBEC Access To Capital For Minority Businesses In Troubled Ecomonic Times • ARRA Business To Business Outreach • ARRA Press Conference And Networking • MMBEC/ARRA Business To Business Outreach • MMBEC/ARRA Business To Business G. Corporate Member Participation Attendance Sheets • MMPC and Trade Fair • Annual Invitational Golf Tournament • Annual Awards • Supplier Diversity Summit • Annual General Membership H. Minority Supplier Participation Attendance Sheets • MMPC and Trade Fair • Annual Invitational Golf Tournament • Annual Awards • Supplier Diversity Summit • Annual General Membership M. Proactive Support & Marketing Of The Business Consortium Fund (BCF) • MBE Certification Orientation(s) • MMPC and Trade Fair • MMPC Professional Development “Access To Capital” Seminar
Michigan Minority Supplier Development Council
4
2010 Council of the Year Application
I. Presidents Message And Overview
president’s message 2009 had a number of high points and low points for the Michigan Council. It began on one of the low points, in the form of a comment from a person who had been encouraged to work with MMSDC and replied that an invitation to work with our corporate members and MBEs in Michigan was like “receiving a lump of coal for Christmas.” Ouch.
After the initial sting, we decided that we would “own” the lump of coal on Christmas Day label. People describe coal as a black, messy ore. But under pressure - under intense pressure and high heat — the lump of coal becomes a rough diamond.
That is the prism which describes our performance and results for 2009. We developed a new ROI for our customers; strongly rooted in our unyielding commitment to minority business development, but defined by new Relationships, Opportunities, and Innovation. We not only faced the pressure, we embraced the pressure. Our team approached that pressure directly, without hesitation, or fear. In fact we increased the pressure on ourselves and responded by:
• Setting a new NMSDC record for new Corporate Members • Growing MBE spend by over 30% at a time when sourcing volumes were plummeting • Increasing the engagement and involvement of our corporate members despite sever reductions in supplier diversity staffs or entire program elimination. • Establishing new partnerships and programs that benefited our members and generated sustainable revenue for the council • Overcoming a $400,000 deficit early in the year and finishing the year with a positive balance • Developing key relationships with Industry CEO’s and policy makers at a time when Michigan and it’s leading industry were not thought of highly • Maintaining focus through three board chair changes in a year, while a large percentage of the company’s on our Board of Directors were in bankruptcy with some of them liquidating and closing their doors.
We made an imprint on minority business policy with chief executives from several of the world’s largest companies, and even with the chief executive of the United States of America. We innovated, partnered, and generated revenues in ways that this organization had never seen. Most importantly, we did it staying true to our mission of minority business development, and with transparency and integrity.
Michigan Minority Supplier Development Council
6
2010 Council of the Year Application
president’s message (cont’d) The year didn’t start that way…
2009 was a difficult economic year for everyone. The country officially entered into a recession and Michigan entered year eight (8) of its economic depression according to economist. It was worse than our worst case scenario planning had envisioned. We prepared to reduce our already diminished (or streamlined) operations from 17 down to 3. We cut fat, muscle and even bone. When it was all done we realized that we could never cut our way to prosperity and sustainability. We had to do the same things our corporate members and MBE’s had to do. We needed a plan for growth, diversification and reinvention.
That plan worked. It worked amazingly well. It worked because of the effort and commitment of our corporate members, MBEs and staff. I don’t know if this application can adequately describe the challenges we faced, and the blood sweat and tears that led to the success we realized, but I pray that it does. I trust that after reviewing this summary of our results and the context in which they were achieved, that you will recognize we earned Council of the Year for 2009. Respectfully submitted,
Louis Green President and CEO Michigan Minority Supplier Development Council
Michigan Minority Supplier Development Council
7
2010 Council of the Year Application
MMSDC board of directors Bo I. Andersson Chair General Motors
Sharon Cannarsa Systrand Manufacturing
Cathy Kutch Kellogg Company
Leon Richardson Chemico Systems
Robert E. Socia Chair General Motors
Brian Cloyd Steelcase
tom lake Honda
Roderick Rickman Rickman Enterprise
Robert Fisher Vice-Chair and Interim Chair Takata
Gerald Diez Delaco Steel
Brenda Marshall Kelly Services
Andra Rush Rush Trucking
Don P. Alessi Treasurer Comerica Bank
Keith Eakins, Jr. Volkswagen of America
Henry Martin, Jr. Visteon
Chain Sandhu NYX, Inc.
Arthur Dudley Secretary Butzel Long
Walter Elliot, Jr. LaSalle Bank
Arthur McClellan General Motors
Sid Taylor SET Enterprises
Louis Green President & CEO
Helen Ford AAA Michigan
Marcella McCullough Ford Motor Company
John Taylor Delphi
Arnold Andrews Tiffany’s Building Services
V. Diane Freeman General Motors
preston means Accu-Shape Die Cutting
Anthony Tomczak DTE Energy
George Barnes Heritage Vision Plans
Joseph Garcia Garcia Packaging
Terry Nadeau Johnson Controls
Adrienne Trimble Toyota Motors Manufacturing N.A.
Sarah Bates New Technology Steel
Joan Gossman Wayne State University
Armando Ojeda Ford Motor Company
Frank Venegas Ideal Group
Kevin L. Bell Chrysler LLC
Don Groth Detroit Medical Center
Vickie Piner Lear Corp
Peter Wong Roy Smith Company
Jim Birch OfficeMax
John James James Group International
Desiree Quinney Michigan State
Jackie Burnley Walbridge
Ram Kancharla Computech
Michael Ramirez Herman Miller
Michigan Minority Supplier Development Council
8
2010 Council of the Year Application
MMSDC 2009 Staff Directory Louis Green Bonita Gaston Steve Larson Diane Freeman
President/CEO Executive Assistant to the President/CEO Business Development Project Manager GM/Executive on Loan
Finance/Administration Mary Brown Executive Vice President and CFO Melody Johnson Accounting Tracy Taylor Events/Invoicing, Office Resource Coordinator Regional Office Valencia Cooper
Regional Offices (Grand Rapids)
Certification/Minority Business Services Hector Shamley Vice President Certification and Integrity Services Diane Lee Director, Certification and Integrity Services Irma Salinas-Lisk Certification Specialist Kenneth Harris Director, Business Development/Strategic Initiatives Corporate Services James Franklin Flora Hill
Vice President Member Services and Government Relations Member Services
Communications, Research & Marketing Lillian Lowery Director Ted Adams Director, Web and Graphic Services
Professional Development Wanda Harper Director
Michigan Minority Business Enterprise Center Ronald Frederick Executive Business Consultant Valencia Cooper Senior Consultant Flora Hill Administrative Assistant
Michigan Minority Supplier Development Council
9
2010 Council of the Year Application
II. 2010 Council Of The Year Application
COUNCIL OF THE YEAR NMSDC 2010 ANNUAL CONFERENCE APPLICATION FORM Regional Council Name: Michigan Minority Supplier Development Council
Date: July 14, 2010
Application Prepared by: Tracy Taylor
Chair: Bo Andersson Robert Socia Robert Fisher
Approved by President: Louis Green
2007
A1. Number of NMSDC Local Corporate Members (Dues Paying)
New 32 Dropped 76 Total 419 (On a separate sheet please explain why your Council should receive maximum points.) (See attachment Narrative A1) 2007 A2. Number of National Corporate Members (Dues Paying) New 11 Dropped 7 Total 136 (On a separate sheet please explain why your Council should receive maximum points.) (See attachment Narrative A2) 2007 B. Number of NMSDC Certified Suppliers (consistent with Quarterly Reports) New 154 Dropped 1452 Total 1622 (On a separate sheet please explain why your Council should receive maximum points.) (See attachment Narrative B)
Michigan Minority Supplier Development Council
11
2008
2009
48 141 326
59 131 254
2008
2009
5 12 129
9 19 119
2008
2009
193 256 1559
149 331 1377
Possible Points (12)
Possible Points (12)
2010 Council of the Year Application
2007 C. Total Minority Purchase Dollars (sales generated by YOUR certified members only) $16.0B % of companies reporting 12.5%
2008 $9.09B 29%
2009 $11.7B 40%
Possible Points (6)
Please discuss your Council’s role and impact on the MBE contracts and dollars generated: (See attachment Narrative C) D1. Number/Name of Educational Programs presented. (Provide attendance list) Name/Type of Event MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation MBE Economic Forum MBE Certification Orientation – Mid Michigan MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation MBE Certification Orientation MMPC Professional Development Opening Session “W.E. John Institute for Employment Research” Seminar MMPC Professional Development “Access to Capital” Seminar MMPC Professional Development “The Return on Investment (ROI) of Supplier Diversity” MMPC Professional Development “Corporate/MBE Roundtable Networking”
23 26 16 21 31 11
# in Attendance
Possible Points (12)
Date Given January 12, 2009 January 26, 2009 February 9, 2009 February 23, 2009 February 25, 2009 March 9, 2009
17 19 19 16 32
March 9, 2009 March 23, 2009 April 13, 2009 April 27, 2009 May 6, 2009
36
May 6, 2009
22
May 6, 2009
20
May 6, 2009
Michigan Minority Supplier Development Council
2009 47
12
2010 Council of the Year Application
MMPC Professional Development “Moving Supplier Diversity Beyond Compliance to Value Creation” MMPC Professional Development “Integrating Supplier Diversity into your Company’s Sales Process” MMPC Professional Development “How to Manage Risk in a Down Economy” MMPC Professional Development “Doing Business in West Africa” MMPC Professional Development “Doing Business in a Global Marketplace” MBE Certification Orientation MBE Certification Orientation – Mid Michigan Minority Manufacturers Diversification Summit Survival Through Bankruptcy, Part I MBE Certification Orientation MBE Certification Orientation Survival Through Bankruptcy, Part II MBE Certification Orientation North American Industrial Classification System Workshop “Everything you need to Know About NAICS Codes” MBE Certification Orientation MBE Certification Orientation MBEC Access to Capital for
31
May 6, 2009
16
May 6, 2009
21
May 6, 2009
19
May 6, 2009
15
May 6, 2009
17 15
May 11, 2009 May 18, 2009
101
May 26, 2009
10
June 5, 2009
Sign-in Sheets N/A
16 19 18
June 15, 2009 June 22, 2009 June 24, 2009
Sign-in Sheets N/A
14 28
July 13, 2009 July 27, 2009
16 13 52
July 27, 2009 August 10, 2009 August 11, 2009
Michigan Minority Supplier Development Council
13
2010 Council of the Year Application
Minority Businesses in Troubled Economic Times MBE Certification Orientation Annual Education Immersion Day MBE Certification Orientation MBE Certification Orientation – Mid Michigan MBE Certification Orientation MBE Certification Orientation The Use of Strategic Alliances & Joint Ventures as Tactics to Thrive in the Global Economy MBE Certification Orientation ARRA Business to Business Outreach ARRA Press Conference and Networking MBE Certification Orientation Doing Business with the Federal Government: GSA Schedules and ARRA MMBEC/ARRA Business to Business Outreach MBE Certification Orientation ARRA Corporate Bridges MMBEC/ARRA Business to Business Outreach
12 195 20 1
August 24, 2009 September 10, 2009 September 14, 2009 September 14, 2009
21 14 89
September 28, 2009 October 12, 2009 October 19, 2009
16 32
October 26, 2009 October 28, 2009
90
November 6, 2009
18 20
November 9, 2009 November 12, 2009
21
November 13, 2009
16 69 124
November 16, 2009 November 18, 2009 December 3, 2009
Please share what you believe was the impact of your educational programs on your MBEs. (See attachment Narrative D1) D2. Co-participation with other entity. Michigan Minority Supplier Development Council
14
2010 Council of the Year Application
Name/Type of Event Mass Transportation Authority (MTA)/MMSDC – General Contractor Outreach & Information Forum MMSDC Minority Business Roundtable
MMSDC/MMBEC/MDOT DBE Contractors Outreach Minority Manufacturers Diversification Summit Aerospace Interiors Pre-marketing MBE Session North American Industrial Classification System Workshop “Everything you need to Know About NAICS Codes” MBEC Access to Capital for Minority Businesses in Troubled Economic Times Annual Education Immersion Day The Use of Strategic Alliances & Joint Ventures ARRA Business to Business Outreach ARRA Press Conference and Networking Doing Business with the Federal Government: GSA Schedules and ARRA MMBEC/ARRA Business to
9
# in Attendance
Date Given February 27, 2009
14
March 17, 2009
10
April 9, 2009
101
May 26, 2009
26
June 9, 2009
28
July 27, 2009
52
August 11, 2009
195 89
September 10, 2009 October 19, 2009
32
October 28, 2009
90
November 6, 2009
20
November 12, 2009
21
November 13, 2009
Michigan Minority Supplier Development Council
15
Information provided on MTA projects, bidding process and requirements, certification, DavisBacon Act Develop strategic partnerships with other organizations serving the MBE community, create a unified agenda for collective and enhanced opportunities for minority businesses and supportive resources
2010 Council of the Year Application
Business Outreach ARRA Corporate Bridges MMBEC/ARRA Business to Business Outreach
69 124
November 18, 2009 December 3, 2009
Please share what you believe was the benefit(s) derived from this co-sponsored/co-participation event. (See attachment Narrative D2) D3. New educational program. Name/Type of Event MBE Economic Forum Minority Manufacturers Diversification Summit Survival Through Bankruptcy, Part I Survival Through Bankruptcy, Part II MBEC Access to Capital for Minority Businesses in Troubled Economic Times The Use of Strategic Alliances & Joint Ventures ARRA Business to Business Outreach ARRA Press Conference and Networking MMBEC/ARRA Business to Business Outreach ARRA Corporate Bridges MMBEC/ARRA Business to Business Outreach
31 101
# in Attendance
Date Given February 25, 2009 May 26, 2009
10
June 5, 2009
18
June 24, 2009
52
August 11, 2009
89
October 19, 2009
32
October 28, 2009
90
November 6, 2009
21
November 13, 2009
69 124
November 18, 2009 December 3, 2009 (See attachment Narrative D3)
Michigan Minority Supplier Development Council
16
2010 Council of the Year Application
E. Number/Kind(s) of Matchmaker (event linking seller with buyer) events (List MBE and corporate partners for each and attach attendance list) Activity Location Date Wayne State Project One Module Wayne State University January 14, 2009 Wayne State Project One Module Wayne State University February 11, 2009 Walbridge Project One Module Soft Touch Painting February 25, 2009 Spectrum Health Project One Spectrum Health, Meijer Heart February 26, 2009 Module Center, 8th Floor Room 8812 Mass Transportation Authority MTA Training Center, 1401 S. February 27, 2009 (MTA)/MMSDC – General Dort Highway, Flint, MI Contractor Outreach & Information Forum Roundtable Networking Wayne State Student Ballroom March 3, 2009 MIC Commercial Sector MMSDC Edgar Brazelton March 10, 2009 Boardroom Wayne State Project One Module Wayne State University March 11, 2009 Marketing Enhancement Series Skyline West Michigan March 17, 2009 Tradeshows (Pilot) Pistons Business to Business Palace of Auburn Hills March 26, 2009 After-Hours Wayne State Project One Module Wayne State University April 9, 2009 MMSDC/MMBEC/MDOT Prime MMSDC Edgar Brazelton April 9, 2009 Contractors Outreach Boardroom MMSDC/MMBEC/MDOT DBE Cadillac Place April 9, 2009 Contractors Outreach Walbridge Project One Module VMX International April 15, 2009 MMPC and Trade Fair Cobo Hall Conference & May 5-7, 2009 Convention Center Wayne State Project One Module Wayne State University May 13, 2009 MBE to MBE Roundtable MGM Grand Detroit Casino May 19, 2009 Networking Minority Manufacturers Lear World Headquarters May 26, 2009 Diversification Summit Annual Invitational Golf Stonebridge Golf Course & Travis June 8, 2009 Tournament Pointe Country Club Aerospace Interiors Pre-marketing MMSDC Edgar Brazelton June 9, 2009 Michigan Minority Supplier Development Council
17
2009 41
Possible Points (4)
# of Attendees 21 24 6 18 7
71 7 24 10 55 20 8 10 7 1305 20 67 101 227 26 2010 Council of the Year Application
MBE Session Walbridge Project One Module Henry Ford Health System Project One Module Accident Fund Project One Module Alberici Constructors Project One Module Walbridge Project One Module MID Michigan/Flint/Saginaw/Bay Regional Roundtable Accident Fund Project One Module Henry Ford Health System/Alberici Constructors/Walbridge Project One Module Supplier Diversity Summit Accident Fund Project One Module MID Michigan/Flint/Saginaw/Bay Regional Roundtable MMBEC/ARRA Business to Business Outreach MIC Commercial Sector ARRA Press Conference & Networking MIC Wholesale Distributor Sector MIC Professional Services Sector MMBEC/ARRA Business to Business Outreach Accident Fund Project One Module MMBEC/ARRA Business to
Boardroom Walbridge Henry Ford West Bloomfield
June 17, 2009 July 2, 2009
9 21
Accident Fund
August 18, 2009
6
Walbridge
August 26, 2009
8
Walbridge U of M Flint
August 26, 2009 August 27, 2009
12 11
Accident Fund
September 15, 2009
6
Henry Ford Corporate Offices
September 24, 2009
34
Radisson Hotel Kalamazoo Accident Fund
October 15, 2009 October 20, 2009
196 10
Accu-Shape Die Cutting
October 28, 2009
9
Auburn Hills Marriott
October 28, 2009
35
MMSDC Edgar Brazelton Boardroom Cloud 9 Restaurant
November 3, 2009
4
November 6, 2009
90
MMSDC Edgar Brazelton Boardroom Kent County Administration Building Grand Valley State University, Grand Rapids, MI Accident Fund
November 11, 2009
7
November 12, 2009
19
November 13, 2009
21
November 17, 2009
18
Hotel St. Regis, Detroit, MI
December 3, 2009
124
Michigan Minority Supplier Development Council
18
2010 Council of the Year Application
Business Outreach MID Michigan/Flint/Saginaw/Bay Regional Roundtable Accident Fund Project One Module
Accu-Shape Die Cutting
December 3, 2009
17
Spartan Hall of Fame Café
December 15, 2009
7
F. Description and Results of new/innovative Programs Developed by your Council last year (2009). (Attach sheet if more space needed, attach attendance list). Program MBE Economic Forum
Date Given February 25, 2009
# of participants 31
MMSDC Minority Business Roundtable
March 17, 2009
14
Marketing Enhancement Series Tradeshows (Pilot)
March 17, 2009
15
Minority Manufacturers Diversification Summit
May 26, 2009
101
Survival Through Bankruptcy, Part June 5, 2009 I
10
Summer Corporate Membership Networking Session
44
July 30, 2009
Michigan Minority Supplier Development Council
19
2009
Possible Points (4)
Description An Economic Forum that provides value added insight and strategies for survival during this economic downturn and assists MBEs in making good business decisions Develop strategic partnerships with other organizations serving the MBE community, create a unified agenda for collective and enhanced opportunities for minority businesses and supportive resources Derrell Jackson facilitated an interactive presentation maximizing your investment of time and resources before, during and after a tradeshow. He shared strategies on understanding the purpose of the exposition, determining how to get more foot traffic to your booth and effective contact follow-up. There were also booth set-ups evaluator pitch “role-playing” and corporate recommended do’s and don’ts Summit for minority manufacturers and other minority businesses that have the potential to diversify into one of four (4) emerging targeted industries: Alternative Energy / Aerospace / Defense / Medical Devices What every business needs to know about the Bankruptcy process; when to – when not to, how a customer or vendors bankruptcy affects your business How to utilize online corporate services tools; Getting involved in MMSDC Project One and Corporate Supplier Diversity Development Program
2010 Council of the Year Application
MBEC Access to Capital for Minority Businesses in Troubled Economic Times ARRA Business to Business Outreach ARRA Press Conference and Networking
August 11, 2009
52
October 28, 2009 November 6, 2009
32
MMBEC/ARRA Business to Business Outreach
November 13, 2009
21
MMBEC/ARRA Business to Business Outreach
December 3, 2009
124
Accessing capital for minority businesses under Federal Government Programs; Community lending bank financing options; Alternative lending sources during these difficult economic times in Michigan Match MBEs with contract opportunities under the American Recovery and Reinvestment Act (ARRA) Initiative is designed to maximize MBE involvement in ARRA contracts in Michigan by identifying opportunities, matching and support minority businesses in accessing and competing for Recovery Act opportunities.
90
Match MBEs with contract opportunities under the American Recovery and Reinvestment Act (ARRA) Match MBEs with contract opportunities under the American Recovery and Reinvestment Act (ARRA) (See attachment Narrative F) 2009
G. Corporate Member participation in major council functions (attach attendance list) Activity MMPC and Trade Fair
Annual Invitational Golf Tournament Annual Awards Dinner Supplier Diversity Summit Annual General Membership
Date May 5-7, 2009
Locations Cobo Conference & Convention Center June 8, 2009 Stonebridge Golf Course & Travis Pointe Country Club September 29, DSO/Max 2009 Fisher Music Theater October 15, Radisson Hotel 2009 Kalamazoo November 19, General Motors, 2009 Vehicle
Michigan Minority Supplier Development Council
20
1305
# of Attendees
589
227
92
757
429
196
85
177
57
Possible Points (8) # of Corporations
2010 Council of the Year Application
Engineering Center 2009
H. Minority Supplier participation in major council functions (attach attendance list). Activity MMPC and Trade Fair
Annual Invitational Golf Tournament Annual Awards Dinner Supplier Diversity Summit Annual General Membership
Date May 5-7, 2009
Locations Cobo Conference & Convention Center June 5, 2009 Stonebridge Golf Course & Travis Pointe Country Club September 29, DSO/Max 2009 Fisher Music Theater October 15, Radisson Hotel 2009 Kalamazoo November 19, General Motors, 2009 Vehicle Engineering Center
1305
# of Attendees
# of MBE Companies 716
227
135
757
328
196
111
177
114
I. MBEIC Committee Activities other than regularly scheduled meetings (describe specific projects and attached attendance list). Activity Date Priority Health – Presentation, February 25, 2009 Outreach & Networking “Social Networking Savvy” – How April 28, 2009 to leverage social media to enhance brand and increase sales Bronson Hospital – Presentation, April 29, 2009 Outreach & Networking Michigan Minority Supplier Development Council
21
Possible Points (8)
2009
Possible Points (4)
Location Grand Rapids, MI
# of Participants 35
Automation Alley, Troy, MI
150
Grand Rapids, MI
42
2010 Council of the Year Application
Herman Miller – Presentation, Outreach & Networking
June 24, 2009
Grand Rapids, MI
33
Michigan State University – Weekend MBA Program 4th Annual All Industry Golf Networking Outing City of Grand Rapids & Kent County – Presentation, Outreach & Networking State of Michigan – MI Jumpstart Program
September 1, 2009
Grand Rapids, MI
29
September 1, 2009
Meadows at GVSU, Allendale, MI
59
November 12, 2009
Kent County Administrative Bldg.
19
November 12, 2009
Grand Rapids, MI
20
(See attachment Narrative I) J. Staff Involvement with other related Agencies or Community Organizations (list and describe).
Possible Points (4)
(See attachment Narrative J) K. President’s, Chair’s, MBE Chair’s activities that support mission of NMSDC (list committees, task forces, meetings, etc. involved in through state, regional and national activities).
2009
Possible Points (8)
Activity NMSDC Quarterly Meetings
Date April 22-23, 2009 July 21 – 23, 2009
Location Washington DC Seattle, WA
Speaker – Kelly Services Supplier Diversity Council Meeting Panelists – Crain’s Detroit Business 6th Annual Innovation Through Diversity Conference Speaker - Ford Motor Company Auto Industry Group Meeting NMSDC Minority Business Leadership Awards Dinner
March 3, 2009
Troy, MI
April 21, 2009
Detroit, MI
# of Participants Affiliate Regional Councils, Presidents/EDs, MBEIC Chair, Board Chair Kelly Services Executive, Supplier Diversity Team 300
May 5, 2009
Detroit, MI
Ford Leadership, AIG Members
May 13, 2009
New York, NY
Affiliate Regional Councils Presidents/EDs, MBEIC Chair,
Michigan Minority Supplier Development Council
22
2010 Council of the Year Application
Board Chair, National Corporate Members, MBEs 120
Speaker – DTE Energy Nuclear Manufacturing Outreach Billion Dollar Roundtable (BDR)
May 20 – 21, 2009
Detroit, MI
May 27, 2009
Arlington, VA
Affiliate Presidents/EDs, NMSDC Corporate Members and Major Corporations
Billion Dollar Roundtable in Collaboration with The TUCK School of Businesses 2009 Summit Host Town Hall Meeting for U. S. Commerce Secretary Gary Locke Host - Michigan Aerospace Manufacturers Association Moderator - State of 2nd Annual Michigan Public Purchasing Conference Host Automotive Session for U. S. Department of Commerce, Rick Wade, Sr. Advisor
May 28, 2009
Arlington, VA
June 2, 2009 June 9, 2009
Dakkota Systems Holt, MI Detroit, MI
BDR Leaders, M/WBEs, NMSDC Presidents, EDs, Major Corporations, Diversity Managers MBEs, Government Officials
June 10, 2009
Grand Rapids, MI
275
June 23, 2009
Detroit, MI
25 MBEs, Government Officials
MBDA National Conference & Summit
July 6 – 10, 2009
Washington, DC
NMSDC Affiliate Presidents/EDs, MBEC & MBOC Operations & Project Directors, Gov. Officials, W/MBEs Will be seen by thousands
IBM – Small Business Podcast July 27, 2009 (SME Toolkit) Speaker–African World Expo in August 14, 2009 Collaboration with AKWA IBOM State Association of Nigeria, USA, Inc. MBDA MED Week August 26 – 28, 2009
Michigan Minority Supplier Development Council
Southfield, MI
23
25-30
Dearborn, MI
250 (FYI Hector & Ken were Moderators)
Chicago, IL
MBEC & MBOC Centers, Operations & Project Directors, 2010 Council of the Year Application
UEP Detroit 150 Merging Industries Meeting
August 28, 2009
Detroit, MI
Facilitator -Tier I/Minority November 9, 2009 Business Enterprise at Toyota Opportunity Exchange Fair Toyota Opportunity Exchange Fair November 9 – 10, 2009
Cincinnati, OH
Bank of America Independent November 4-6, 2009 Sector and Council of Michigan Foundations Annual Conference Speaker - Ford Motor Company October 5, 2009 Heighten Awareness on Supplier Diversity Development NMSDC National Convention October 25-28, 2009
Detroit, MI
Board Chair Host Executive Finance Committee & Board Meetings
MBEIC Chair NMSDC Quarterly Meetings, Corporate Plus representative – NMSDC Corporate Input Committee NMSDC Minority Business Leadership Awards Dinner NMSDC National Convention and
Cincinnati, OH
Dearborn, MI
Centers Client Base, W/MBEs Government Officials, CEOs, (MMTC, MEDC, GE Healthcare, NextEnergy, NEI, UEP, Kaufman Foundation) 250 Session 2000 Participants Tier I Suppliers and MBEs 250 – 500 Participants (Presidents, CEOs, IS Members/Associates, CMF) 35
New Orleans, LA
Affiliate Regional Councils Presidents/EDs, NMSDC Corporate Members, Regional Members, MBEs
Feb. 11, 2009 April 8, 2009 June 3, 2009 Aug. 20, 2009 Oct. 7, 2009 Nov. 19, 2009
General Motors Corporation Warren, MI
40-45
January 28-29, 2009 April 22-23, 2009 July 22-23, 2009
Phoenix, AR Washington DC Seattle, WA
Affiliate Regional Councils, Presidents, EDs, MBEIC Chair, Board Chair
New York, NY
NMSDC Corporate Members, Regional Members, MBEs, NMSDC Corporate Members,
October 25-29, 2009
Michigan Minority Supplier Development Council
New Orleans, LA 24
2010 Council of the Year Application
NMSDC Corporate Input Committee NMSDC Corporation of the Year Executive Committee Member National MBEIC Executive Board Member 1st Vice Chair – National Association of Black Automotive Suppliers (NABAS) African American Business Alliance – Board Member Mi. Black Chamber of Commerce – Member President, Kellogg Alumni Vice-Chair National Association of Minority Contractors Mentored Supplier to Chrysler, Ford and General Motors City Connect, Board Member
Regional Members, MBEs, Ongoing
Various
Committee Members
Ongoing
Various
MBEIC Chairs
Ongoing
Detroit, MI
Ongoing
Detroit, MI
Ongoing
Detroit, MI
Ongoing Monthly
Various Brewery Place, Detroit, MI
Minority Owners of Automotive Supplier Companies & corporate members African American Business Owners African American Business Owners Kellogg Alumni Minority Contractors
Monthly
Chrysler, Auburn Hills, MI Ford, Dearborn, MI General Motors, Warren, MI Detroit, MI
Monthly
Minority Suppliers and Corporate Diversity Champions Business owners and Community Leaders
(See attachment Narrative K) 2009
L. 2009 Awards presented to Council in last year. Award 14 Annual Urban Wheel Awards
Organization U.S. Department of Commerce
Date December 4, 2009
Recognition of Achievement – Overall High Performance Award
MBDA
July 14, 2009
th
Reason for Award Leadership in stimulating minority business development Overall High Performance
2009 Michigan Minority Supplier Development Council
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Possible Points (4)
Possible Points (2)
2010 Council of the Year Application
M. Describe your council’s pro-active support and marketing of the Business Consortium Fund (BCF). What activities, seminars or methods have been used to educate MBE’s and Corporations on the value of this fund (include attendance list). Activity MBE Certification Orientation
MMPC and Trade Fair
Date January 12, 2009 January 26, 2009 February 9, 2009 February 23, 2009 March 9, 2009 March 23, 2009 April 13, 2009 April 27, 2009 May 11, 2009 May 18, 2009 June 15, 2009 June 22, 2009 July 13, 2009 July 27, 2009 August 10, 2009 August 24, 2009 September 14, 2009 September 28, 2009 October 12, 2009 October 26, 2009 November 9, 2009 November 16, 2009 May 5-7, 2009
MMPC Professional Development May 5-7, 2009 “Access to Capital” Seminar
Location MMSDC Edgar Brazelton Boardroom & Mid Michigan Offices
# of Participants 396
Cobo Hall Conference & Convention Center Cobo Hall Conference & Convention Center
1305 36
(See attachment Narrative M) N1. What programs does the council have to foster/encourage MBEs doing business with MBEs? Amount of dollars reported MBE to MBE. Michigan Minority Supplier Development Council
26
2009
Possible Points (8) $163,344,574.00
2010 Council of the Year Application
Program MIC Commercial Sector
Date March 10, 2009
# of Participants 7
May 19, 2009
Location MMSDC Edgar Brazelton Boardroom Various Locations MMSDC Edgar Brazelton Boardroom MGM Grand Detroit Casino
Project One Modules MIC Sector Chairs
Monthly April 6, 2009
MBE to MBE Roundtable Networking MID Michigan/Flint/Saginaw/Bay Regional Roundtable MID Michigan/Flint/Saginaw/Bay Regional Roundtable MIC Commercial Sector
August 27, 2009
U of M Flint
8
October 28, 2009
Accu-Shape Die Cutting
20
November 3, 2009
MMSDC Edgar Brazelton Boardroom MMSDC Edgar Brazelton Boardroom Kent County Administration Building Accu-Shape Die Cutting
4
MIC Wholesale Distributor Sector
November 11, 2009
MIC Professional Services Sector
November 12, 2009
MID Michigan/Flint/Saginaw/Bay Regional Roundtable
December 3, 2009
301 7 67
7 19 17
N2. Did your council nominate all locally eligible “Supplier of the Year “winners to participate in the NMSDC National Competition? Yes X No Some Explain answer: MMSDC was honored to nominate four (4) outstanding MBEs for consideration in the NMSDC National “Supplier of the Year” Competition. Class I – PLM Staffing, an employment placement agency Class II – Webrunner, Inc. dba W3R Consulting, an Information Technology Consulting firm Class III – Coat-It, Inc., an adhesive manufacturer, originally certified in 1985 Class IV - Bartech Group, Inc., certified since 1977, a full service placement and staffing firm O. To what degree does your Council Please describe (Possible Points (4)):
communicate/coordinate
with
the
National
Office
2009
to
support
your
local
(See attachment Narrative O)
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2010 Council of the Year Application
operation?
III. Application Narratives
Corporate Membership A1. Local Corporate A2. National Corporate (Pages 30-33)
SECTION A1 NARRATIVE Number Of NMSDC Local Corporate Members; Explain Why Your Council Should Receive Maximum Points: Local member involvement in MMSDC has been one of the keys to our strength. Local members drive our ability to provide opportunities for a number of our Class I and Class II MBEs and position them for growth so they can acquire competitive opportunities at scale. They also form the critical mass that we use in developing new national members. In addition these local members make up a significant percentage of our national members strategic suppliers.
With the support of our board of directors and creative solutions by staff, we were able to reduce cost while maintaining a high level of service. We were determined to provide optimal service and innovative options to support our corporate members.
We increased our focus on supporting corporate supplier diversity managers by providing professional development sessions that could immediately impact their programs: • Moving Supplier Diversity Beyond Compliance to Value Creation – Craig B. Clayton, Sr., Director & Diversity Strategist International Institute for Diversity & Cross Cultural Management, University of Houston • Integrating Supplier Diversity Into Your Company’s Sales Processes – Kelly Services, Inc. and Barton Malow • The Return on Investment (ROI) of Supplier Diversity – AAA of Michigan and Delphi Corporation
Accordingly, we continue to enhance our commitment to provide local members with exceptional customer service, an unparalleled variety of qualified MMSDC certified MBE’S and to engage them in key leadership positions throughout MMSDC. The effectiveness of our efforts are reflected in our ability to recruit 59 new local corporate members in 2009.
We hosted corporate membership drives:
• One at our Annual Meeting • Our Board of Directors used our signature events (i.e. Annual Awards) to invite new potential members
No one could have imagined the day when two of the largest automotive manufacturers in the world filed for bankruptcy within 60 days of each other. The economic landslide in Michigan continued with major auto suppliers and the banking industry faltering. This caused many companies to greatly reduce supplier diversity program resources and staff, while others eliminated their programs.
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2010 Council of the Year Application
SECTION A1 NARRATIVE (cont’d) MMSDC also conducted a Summer Corporate Membership Presentation by Sean McAlinden, Chief Economist, Vice Present Research, Center of Automotive Research – Topic: “Economic of a Successful Automotive Reorganization.” The presentation focused on the bottom line for the automotive reorganization and provided clarity to our corporate members on solutions for the challenges ahead.
MMSDC should get the maximum points in this category during the most difficult economic environment in Michigan history, MMSDC member satisfaction reached an all time high of 94.6%, and secured the highest number of new corporate members (59) of any NMSDC regional council. In one of the most turbulent years any of us had experienced, the MMSDC led by example. The organization took the necessary steps to keep itself financially solid while still providing key services to its corporate and MBE members. With the loss of members, the bankruptcies of many key contributors and extraordinarily difficult economic times, the council could have easily lost focus but the MMSDC kept its momentum and positioned itself for the future.
Our annual corporate member meeting was designed to help corporate members better understand the services available to them. We demonstrated how our increased use of new technology provided enhanced benefits to better serve them: • Online database of MBEs-searchable by corporate members • Capability of securing detailed financial information on MBEs • Ability to post bids on the MMSDC website by corporate members or by our staff
Thomas F. Barrett Mac Arthur Corporation
We created greater opportunities to provide awareness of the support we received by our corporate members. We enhanced signs at our events, acknowledged sponsors on registration sites, emails and news releases.
The cumulative result of our efforts helped to demonstrate that our organization was going to weather this economic storm. Despite reducing the number of full time staff, we made sure our service did not suffer. This encouraged our corporate members to believe in us and to tell their counterparts about MMSDC. We garnered an unprecedented growth in new membership.
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2010 Council of the Year Application
SECTION A2 NARRATIVE Number of National Corporate Members; Explain Why Your Council Should Receive Maximum Points: National member involvement in MMSDC has always been a priority, but has become increasingly important as we navigate uncharted economic waters. National members drive our ability to effectively provide opportunities that will develop and sustain MBEs that are or will become capable of competing in the new global marketplace. They also possess the expertise, resources and skills needed to navigate through the current economic collapse.
Accordingly, we continue to enhance our commitment to provide national members with exceptional customer service, an unparalleled variety of qualified MMSDC certified MBES and to engage them in key leadership positions throughout MMSDC. The effectiveness of our efforts are reflected in the level of national member involved in all aspects of MMSDC as indicated below:
PROGRAM SUPPORT Project ONE – a catalyst for sparking strategic business relationships; defining effective procurement policies that directly impact supplier diversity goals; and developing minority supplier relationships that can lead to a competitive advantage and support long-term growth. Of the nineteen Project ONE business modules, nine are led by National Members.
BOARD OF DIRECTORS MMSDC continues the practice of having a national member as Chair of our Board of Directors. In 2009, national members comprised 76% of the corporate seats on the MMSDC Board of Directors.
• Training – with funding from four National Members, MMSDC was able to provide MBEs with the following sessions: • Survival through Bankruptcy – presented by The Law Firm of Strobl & Sharp, Attorney Lynn M. Brimer and Attorney Meredith E. McKenzie • Everything you need to Know about NAICS Codes – presented by Rhonda J. McGinnis, adjunct instructor of Business, Economic & Labor Studies, Wayne State University and Judith J. Field, Senior Lecturer, Wayne State University.
COMMITTEE SERVICE National members are involved in all MMSDC committees and hold the Chair position for: • • • • • • • •
Member Recruitment Committee Certification Appeals Committee Corporate Input Committee Annual Awards Planning Committee Supplier Diversity Summit Planning Committee Education Immersion Day Committee MMSDC Golf Tournament Planning Committee Supplier Diversity Training Program Committee
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2010 Council of the Year Application
SECTION A2 NARRATIVE (cont’d) • Education Immersion Day - a full day of training presented by three professors from the Tuck School of Business at Dartmouth: • Dr. William F. Joyce, Professor of Strategy and Organization Science - “What Really Works: The 4+2 Formula for Sustained Business Success?” • Dr. Dave Pyke, Dean School of Business Administration - “Mastering the Supply Chain and Responding to the Crisis” • Dr. Phillip C. Stocken, PhD. Accountant “Financial Statement Analysis for Business Executives”
MMSDC has been providing outstanding support to the region and all their customers by providing outstanding leadership. As MBE for more than 5 years, we are really thankful for providing connection to Corporation and NMSDC. We would like to wish continued success for MMSDC. Sanjiv Shah AMBE Engineering, LLC
MMSDC has engaged national members on all levels; leadership on the Board and various committees, mentors for local members and MBES, providers of education and MBE growth opportunities. Accordingly MMSDC should receive the maximum points available in this section.
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2010 Council of the Year Application
Certified Minority Business Enterprises B. Number of Certified Suppliers (Pages 35-36)
SECTION B NARRATIVE Number of NMSDC Certified Suppliers; explain why your Council should receive maximum points: sources of funding.
The Michigan Council maintained 1,377 MBEs by the end of 2009, despite the continuing dour economic climate. Many MBEs stated that they would have continued their certification but for serious year-end financial reasons which prevented them from making a lump sum payment of their MBE fees. We anticipate that many of these MBEs will reapply for certification once their financial situation improves.
process improvement and innovation Our mandatory precertification briefings for new applicants have helped tremendously in reducing the error rate for new application submissions and resulted in an average processing time of 17 days for certification. In addition to reducing the error rate, the pre-certification briefings allow for MMSDC to educate and market our agency to potential constituents. We provide an overview of our organization and NMSDC, discussing the various benefits of joining the NMSDC network. We also provide a brief networking opportunity among potential MBEs during the sessions.
local outreach In our efforts to retain current certified suppliers and recruit potential MBEs, we expanded our marketing efforts by participating in various local events sponsored by organizations including: The Black Expo (audience of 500+); prominent local churches (audience of 300+); and Charles Wright Museum of African American History (audience of 300+). Members of the certification team also participated in several panel discussions to address certification related questions and the benefits of participating in MMSDC activities. To further maintain and promote our certified supplier base, we called and emailed MBEs to promote the benefits of continued certification and the value added proposition certification provides, especially in our debilitating economic environment.
Technology continues to be an essential tool in certification. In its third year of inception, MBEs have finally begun to embrace recertifying electronically and a greater number of MBEs have recertified without problems than last year. The online process has given MBEs the flexibility to recertify when it is convenient for them. Furthermore, newly certified MBEs receive their certificate electronically which provides them the convenience of sending an electronic copy to their corporate clients.
Innovation in certification has extended beyond incorporating technology into our process. MMSDC has had to review and respond to changes in the business sector. Corporations have been trending toward joint ventures and strategic alliances due to industry consolidations, global partnerships and more prudent sourcing requirements. Aside from internal growth or mergers and acquisitions, joint ventures and strategic alliances are the other means by which a company can grow in scale, scope and capacity. As corporate members drive the requirement for larger contracts with fewer suppliers, an increasing number of MBEs are looking for partners so that they have the appropriate scale, capacity and resources to successfully bid on contracts. This has resulted in an increasing number of certification applicants who are partnered with non-ethnic parties to form complex business structures.
“We have enjoyed the environment for networking and education provided by the MMSDC over the course of the last 10 years since our certification as a minority business enterprise. We believe our Council to be second to none!� Leamon R. Sowell L.R. Sowell & Associates, PLLC
MMSDC continues to strengthen its relationships with other agencies catering to ethnic members such as the Michigan Hispanic Chamber of Commerce, Native American Business Alliance and the Asian Pacific Chamber of Commerce through various outreach programs. The certification department also works in conjunction with the Michigan Minority Business Enterprise Center (MMBEC) by referring MBEs who seek federal procurement opportunities and additional
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2010 Council of the Year Application
SECTION B NARRATIVE (cont’d) Although MMSDC experienced attrition through the loss of mostly smaller MBEs, our larger MBEs have remained relatively stable, as evidenced by the high number of Michigan based Corporate Plus members. In 2009, MMSDC had 17 MBEs who received the exclusive Corporate Plus designation by NMSDC.
Working with the MMSDC in 2009 has been a wonderful experience as many small companies are introduced to so many great programs, such as education , business development and net working with companies of all sizes.We feel we are part of a group that lets our voice be heard and supports the needs of each individual company as well as all members.We are proud to be associated with the MMSDC.
Our efforts to mitigate the attrition in certified MBEs, enhance the certification process and assist in maintaining the viability of our Corporate Plus MBEs is worthy of the maximum allowable points.
Michigan Minority Supplier Development Council
Peter Feamster Peter Feamster & Associates, Inc.
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2010 Council of the Year Application
Minority Purchasing Dollars
C. MBE Contracts and Dollars Generated (Pages 38-39)
SECTION C NARRATIVE Please discuss your Council’s role and impact on the MBE contracts and dollars generated: Conventional wisdom is that in times of economic challenges minority owned businesses will be the first to lose opportunities. MMSDC worked diligently to make sure that this time, conventional wisdom would be wrong. We listened, we took action and we were unbending in our commitment to make MBEs aware of every possible opportunity.
Learning to survive and thrive MMSDC offered a number of professional development sessions that provided our MBEs with the necessary knowledge and tools to not only withstand the recession, but gain a competitive advantage. Among those sessions were: • How to Manage Risk in a Down Economy • The Use of Strategic Alliances and Joint Ventures as Tactics to Thrive in The Global Economy • Access to Capital for Minority Businesses in Troubled Economic Times
Over the past few years we have strategically sought Chief Procurement Officers to serve on our Board of Directors and are fortunate to have succeeded in that endeavor. We listened closely as they expressed the challenges
Building Strong Business Connections and Relationships During 2009 MMSDC continued to host some of the largest and most effective networking events (Michigan Minority Procurement Conference and Trade Fair, Supplier Diversity Summit).
they expected as the recession unfolded and bankruptcy filings became common place. Having received their advice and counsel, we developed a series of programs designed to position MBEs as viable solutions for corporations that were struggling to structure a strong, solid supply chain.
Michigan Minority Supplier Development Council
The final results:
Our programs designed to generate new opportunities had continued success (Project ONE, Roundtable Networking) and partnerships with the Michigan Economic Development Corporation, Minority Business Development Agency, Black Enterprise and the Kauffman Foundation/UEP Detroit 150 offered new opportunities to our MBEs.
• $11.7 Billion dollars in MBE contracts, a $2.6 billion increase over last year • The 30% increase in MBE spend is our largest growth percentage in the past 6 years • An MMSDC record setting 40% corporate member reporting 38
2010 Council of the Year Application
SECTION C NARRATIVE (cont’d) The Michigan Councils results were accomplished:
This past year has been very challengng, however FutureNet Group has received several opportunities to bid on contracts based on our partnership with MMSDC. It is a relationship that has helped us to get through many doors. Our parternship with MMSDC is an investment in our future and it is integral part of our value added proposition in addition to our certifications by US SBA 8(a), HUBZone, ISO 9001 and MBE.
• In the worst economic environment • During a time of large reductions in the dollar amount of total contracts let by our corporate members • From a lower number of corporate members than we had in 2008.
MMSDC should receive the maximum allowable points for increasing minority purchasing dollars 2.61 billion during a national recession and with fewer corporate members.
Michigan Minority Supplier Development Council
Perry Mehta FutureNet Group Inc.
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2010 Council of the Year Application
Educational Programs
D1. The Impact of Your Educational Programs On Your MBEs D2. The Benefit(s) Derived From Co-Sponsored/Co Participated Events D3. New Educational Programs (Pages 41-48)
SECTION D1 NARRATIVE Please share what you believe was the impact of your educational programs on your MBEs • • • • •
The benefits of certification ROI of supplier diversity Survival tactics during an economic recession Growth industries and diversification strategies Access to capital and other resources
Below is more specific information on some select sessions of interest:
In partnership with State of Michigan, City of Detroit and Wayne County, MMSDC presented a full professional development day at the Michigan Minority Procurement Conference (MMPC) and Trade Fair. The “Professional University” day provided opportunities for networking, training, leadership development and relationship building designed to position minority businesses for growth and sustainability. Professional Development Training courses were also available for Corporate members focusing on the R.O.I. of Supplier Diversity and other means of increasing the value of Supplier Diversity Programs.
The Opening Session featured George A. Erickcek, Senior Regional Analyst for W.E. Upjohn Institute for Employment Research. Craig B. Clayton, Sr. Director & Diversity Strategist for the International Institute for Diversity, University of Houston trained the corporate members on “Moving Supplier Diversity Beyond compliance to Value Creation.” The MBE session featured an “Access to Capital Forum” featuring Mark Harrison from the BCF with Harvey Butler as the Moderator.
The Professional Development Sessions held throughout 2009 were strategically selected to meet the rapidly-changing needs of our corporate members and MBEs. The Professional Development Committee, comprised of corporate members, MBEs and MMSDC staff, evaluated surveys from past training sessions, gathered information regarding member and MBE needs and developed a curriculum designed to provide effective, result driven strategies that addressed current economic challenges and contribute to the growth and development of a wide range of businesses. MMSDC held 47 training sessions during 2009, attended by over 1,400 members and MBEs. Focus areas included: Michigan Minority Supplier Development Council
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2010 Council of the Year Application
SECTION D1 NARRATIVE (cont’d) These sessions attracted over 200 MBEs and 15 financial institutions. The “Professional University” day culminated with the following panel discussion sessions for MBEs and corporate members: “The Return on Investment of Supplier Diversity”, “Integrating Supplier Diversity into Your company’s Sales Process”,” How to Manage Risk in a Down Economy”, and Doing Business in a Global Marketplace. All of the sessions featured outstanding entrepreneurs who helped attendees create “Solutions in a Changing Economy.” The luncheon highlighted world renowned speaker, Farrah Gray. The popular Matchmaking Networking session yielded new business procurement opportunities and an opportunity to network.
27 Automotive Suppliers File Chapter 11 Bankruptcies in 2009; End of Year Status Summary; Likelihood of Bankruptcy Preference Recovery
Survey results showed that participates rated the sessions as “excellent” throughout the day.
Pressures in the global automotive industry forced 27 FN1 automotive parts and component manufacturers and 2 automakers to seek Chapter 11 bankruptcy protection in 2009. The number of filings is only the headline of the story. While estimated trade creditor distributions on prepetition claims swung the spectrum of 100% to 0%, estimated recoveries of less than 2 percent predominate. And more trade creditor pain looms in several bankruptcies, as bankruptcy preference action recoveries are either included in liquidation budgets, are necessary to avoid administrative insolvency or are likely to be sought by plan administrators and liquidation trustees.
No one could have predicted bankruptcy for some of the largest automotive manufacturers in the world. MMSDC wanted to make sure minority businesses and its corporate members understood the impact of the looming bankruptcies. The law firm of Strobl & Sharp with Attorney Lynn M. Brimer and Attorney Meredith E. McKenzie were the presenters. “Survival through Bankruptcy” provided a unique opportunity to gain invaluable knowledge about bankruptcy. This unique seminar allowed attendees to participate at MMSDC offices or virtual.
Participants learned about the implications of bankruptcy on their coming including: how to get on the list for consideration for payment for services rendered or rules for providing services even if it wasn’t a surety that you would receive payment.
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2010 Council of the Year Application
SECTION D1 NARRATIVE (cont’d) • MBEs discovered that using or not the correct code can bring new opportunities or missed opportunities. • Corporate members discovered the value of knowing by code what product or service they are seeking for procurement.
Attendees met on the campus of Wayne State University, ideal setting for continuous learning. The session presenters: Rhonda J. McGinnis, Business, Economic & Labor Studies Subject Specialist and adjunct Instructor – Judith J. Field, Senior Lecturer, Wayne State University. Attendees Learned: • What is the North American Industrial Classification System? • How and why did the Government Develop the NAICS Codes? • How to navigate through the codes? • When and where to identify codes.
Many databases utilize North American Industry Classification System (NAICS) Codes to categorize and search for companies.
The MMBDC has been instrumental in assisting RCO in our continuous efforts of locating, mentoring and sourcing work to minority businesses in support of our commitment to the US Government, military, aerospace and automotive customer contracts. Through their many training and networking events we have met and established relationships with several companies and we expect these partnerships to be mutually beneficial and long term.
So we contacted one of the local universities and local member, Wayne State, which has a library science program that offered courses related to business. “Everything you need to Know about NAICS Codes “– North American Industry Classification System (NAICS) Codes was a popular professional development offering a new perspective on the value of knowing your product and service code.
Dennis Krucker RCO Engineering, Inc
In using our own database and others we have found many MBEs were missing out on opportunities because they did not use the accurate or most appropriate NAICS code for their company. This also impacted reduced the options for corporate members looking for companies in specific categories.
Michigan Minority Supplier Development Council
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2010 Council of the Year Application
SECTION D1 NARRATIVE (cont’d) The 7th Annual Education Immersion Day was once again the Professional Development Training highlight of the year for Minority Businesses in Michigan. In partnership with General Motors, Toyota, and DTE Energy, we delivered an exceptional program. The program format took a different approach from previous years by featuring three 2 hour sessions presented by three professors from the Tuck School of Business at Dartmouth Dr. William F. Joyce, Professor of Strategy and Organization Science “What Really Works: The 4+2 Formula for Sustained Business Success?”
Dr. Dave Pyke, Dean School of Business Administration “Mastering the Supply Chain and Responding to the Crisis” Dr. Phillip C. Stocken, PhD. Accountant “Financial Statement Analysis for Business Executives”
The courses were selected based on feedback from our 2009 Corporate Survey and based on the current economic state of Michigan.
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2010 Council of the Year Application
SECTION D2 NARRATIVE Co-Participation with other entities MMSDC’s commitment to build and strengthen partnerships with organizations that can assist in providing services, resources, knowledge and opportunities to our certified MBEs and corporate members remains a priority. Our collaborative efforts have brought our MBEs to the forefront of Industry Diversification Programs; provided access to opportunities in growth industries and training that would otherwise not be available. Below are examples of our efforts.
To ensure all qualified minority businesses were aware of this summit, we partnered with business leaders in manufacturing (Chrysler, Ford, GM, JCI and Lear) as well as business chambers and organizations (Michigan Manufacturing Technology Center, Michigan Aerospace Manufacturers Assoc., Hispanic Business Alliance, Indo American Chamber of Commerce, Macomb Regional PTAC, Michigan Hispanic Commerce of Commerce, Michigan and Indian Chamber of Commerce and NAWBO)
This past year, we continued to build our relationship with the US Department of Commerce. The Michigan Minority Enterprise Development Center (MMBEC), a partnership between MMSDC and MBDA, provided consultation and assistance to 217 minority businesses that resulted in over $31M in contracts and procurement.
In addition to numerous collaborative outreach sessions held throughout the year, our partnerships provided the resources necessary to provide these important activities: • Access to Capital for Minority Businesses in Troubled Economic Times • Educations Immersion Day – a full day of training with presenters from the Tuck School of Business at Dartmouth • The Use of Strategic Alliances & Joint Ventures • North American Industrial Classification System Workshop “Everything You Need to Know About NAICS Codes”
As a result of our relationship performance, MMSDC received special funding over 3 months, in the amount of $134K, from the US Department of Commerce. The purpose of the funding was to assist minority businesses in gaining access to the $787B in potential contract opportunities being made available through the American Recovery and Reinvestment Act (ARRA). Over the 90 day program period, we held 4 outreaches across Michigan and were able to match 77 MBEs with contract opportunities in excess of $7.6M.
In May, we were selected by the Michigan Economic Development Corporation to host one of the twelve “Diversification Summit of Manufacturers” being held across Michigan. The purpose of the Summits were threefold:
• Assist the State of Michigan in identifying Michigan based manufacturers, with 25 or more employees, who had the potential to diversify into Aerospace, Defense, Wind Energy and Medical Devices • Provided information on supplier requirements and expectations from representatives in the four targeted industries • Provided attendees with the opportunity to apply for a $10,000 matching-funds grant to be used for re-training staff
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2010 Council of the Year Application
SECTION D2 NARRATIVE (cont’d) new co-participation events • Black Enterprise Conference/MMSDC Partnership May 17-20, 2009 Wal-Mart / Sam’s Club MMSDC Minority Business Fair Special guest speakers: Earl Graves, Sr and Former Mayor Dennis Archer, Sr. This event helped Minority Business Enterprises (MBE’s) gain access to procurement opportunities with one of the largest corporation in the country. This was created to showcase opportunities for minority business owners at Wal-Mart and Sam’s Club stores.
• UEP Detroit 150/MMSDC Partnership October 8 & 9, 2009 Kauffman Foundation/MMSDC Minority Business Initiative Guest speaker Daryl Williams
This event was created to help MBE’s participate in a 3 million dollar initiative to help Michigan-based Minority companies diversify into new industry outside the automotive industry.
• MMSDC Minority Business Roundtable March 17, 2009 Featuring each Minority Chamber of Commerce Special guest Wal-Mart/Sam’s Club
This event was the first of its kind to bring together all Michigan Minority Chambers of Commerce such as the Michigan Asian Pacific Chamber of Commerce, Michigan Hispanic Chamber, the Chaldean American Chamber, the American Arab Chamber, the Michigan Indian Chamber and the Michigan Black Chamber of Commerce.
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2010 Council of the Year Application
SECTION D3 NARRATIVE New Educational Programs – Narrative As the MMSDC Professional Development Committee evaluated the change in corporate purchasing strategies and the pressure put on MBEs as a result of the extended economic collapse, it became evident that nothing was more important than providing survival strategies, coupled with opportunities for moving forward.
Supplier Diversity Summit – October 2009 We revamped this program to provide greater insight for our MBES on how to become a key supplier to leading corporations in West Michigan. Five major Michigan companies provided information on their supplier diversity programs and gave examples of leading supplier. They also advised of upcoming opportunities. After this session, MBEs had the opportunity to network with corporate members and other MBEs during a roundtable networking session.
We provided several new training sessions focused on risk management, financing options and strategies to build a strong brand. As well as, growth opportunities available through joint ventures and strategic alliances, how to qualify and access opportunities provided through government entities and maximizing marketing through technology. Specific information on some of these sessions are as follows:
Joint Ventures & Strategic Alliances – October 2009 Realizing that many corporations were now faced with cost reductions across the board, we offered our MBES this training course to help them gain a competitive edge through joint ventures.
Technology & Social Networking – April 2009 The MMSDC Professional Services sector hosted this seminar to help MBEs get on board with latest technology offered by MMSDC and gain an understanding about the benefits of social media. The panel provided and overview of the social media products and how to effectively use these tools to enhance your business. MMSDC provided updates on the resources available through the MMSDC website (i.e. business links which included a link to the BCF).
Survival Through Bankruptcy – May 2009 Michigan had two of the largest automotive manufacturers and a number of major automotive suppliers to file for bankruptcy in 2009. To help our MBEs understand the implications of these bankruptcies, we secured leading professionals to provide insight and answer their questions. MBEs also learned if bankruptcy was an option to help them stay in business. These sessions helped MBEs to know their rights and how to ensure they were included in the process especially to receive payment from a bankrupt organization.
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Through joint ventures, MBEs could help corporations minimize the risk and reduce their overall supplier count.
MBEs explored the opportunities that could arise from strategic alliances and learned some of the key factors in considering a partner for joint ventures and strategic alliances. The session was presented by Attorney Leamon R. Sowell, Senior Counsel of L.R. Sowell & Associates PLLC.
MBE Economic Forum-February 2009 “Surviving in a Challenging Economy” - Tips, Tools, and Techniques for Business Success was the theme for this forum. PPG Industries, Inc., a corporate member, hosted this event.
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SECTION D3 NARRATIVE (cont’d) Presenters: Renee T. Walker, APR, Associate Vice President, Public Relations and Marketing of Central Michigan University Topic: “Communications Strategies that Contribute to the Bottom Line” Ms. Walker presented cost-effective tips and strategies that you can take back to your business and put into practice immediately. She will focus on how to build a strong brand, how to get your message out to the media and how to network effectively. John Hurley, Senior Vice President, Marsh Corporation Topic: Risk Management
Mr. Hurley discussed emerging business risks and related opportunities to fortify your business. Running a small business in today’s economy challenges us to learn new skills and apply new techniques to protect us from the unexpected. Working leaner presents us with greater and more complex responsibilities. While the risk of failure is greater, there is opportunity for success. Kala J. Gibson, Sr. Senior Vice President & Group Manager Topic: Financial Management Small Business Banking, Comerica Bank
Providing relevant educational programs was critical to helping our MBEs weather Michigan’s economic storm. We offered programs that would help our MBEs adjust to our new economic reality and begin to plan for the future. MMSDC should receive the maximum points possible for our new educational programs.
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Matchmakers
E. 2009 Matchmakers Activities (Pages 50-51)
SECTION E NARRATIVE Number/Kind of Matchmakers MMSDC is fortunate to have a robust corporate membership and MBE base comprised of businesses from all industry groups and varying size and capacity. With this privilege comes the responsibility to provide matchmaking sessions that bring value to everyone. Matchmaking is one source for new opportunities for MBEs. They serve as a great introduction to our corporate members and other MBEs. For corporate members these sessions provide an opportunity to meet multiple MBEs in one session which in the end saves time and money.
Supplier Diversity Summit • This program to offered insight on how to become a key supplier to leading corporations in West Michigan. Five major Michigan companies provided information on their supplier diversity programs and gave examples of leading supplier. They also advised of upcoming opportunities. After this session, MBEs had the opportunity to network with corporate members and other MBEs during a roundtable networking session.
Throughout 2009, MMSDC held 42 matchmakers that attracted over 2,600 participants. To ensure that all members and MBEs were able to participate, we offered large multi-industry events, small single industry or project specific activities and MBE only matchmakers. We also engaged global corporations, local companies, government agencies and community leaders to participate in our matchmakers. Below is more specific information on some of our matchmakers. Highlights of the Types of Events: Event Related Networking Sessions
MMPC • Over 150 MBEs shared their products and services with other MBEs and corporate members. During the three hour session MBEs rotate from throughout the room giving corporate member their quick elevator pitch with the goal of gaining an opportunity for future meetings.
Mass Transportation Authority (MTA) • (MMSDC) sponsored a Michigan Economic Development Corporation (MEDC) Diversification Summit for minority manufacturers. • The purpose of the summit was to assist minority companies in learning about diversification into four targeted industries: Aerospace, Defense, Wind Energy and Medical Devices. MBEs were provided information on supplier requirements, expectations and next steps from industry expertise from the four targeted industries.
Michigan Minority Supplier Development Council
The
Presented By
September 14, 2010 8AM - 5PM Radisson Hotel Kalamazoo, Michigan Connect with leading companies in Healthcare, Manufacturing, Retail, Consumer Products and more.
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SECTION E NARRATIVE (cont’d)
The Minority Business Development Agency (MBDA) was granted a special award to the Michigan Minority Business Enterprise Center (MMBEC) to increase minority business access to contracting opportunities through the American Recovery and Reinvestment Act (ARRA). The American Recovery and Reinvestment Act (ARRA) provided supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization. In Michigan, this translated into grants in several key areas: Economic Development, Education and Research, Energy, Environment, Human Services. Michigan MBEC (Center) is funded by the Minority Business Development Agency (MBDA) and operated by the Michigan Minority Supplier Development Council (MMSDC).
Project ONE Modules brought together MBEs and corporate members. Through the use of mentoring and NMSDC best practices, MBEs find new sources of business.
MMBEC and MMSDC held informational and networking sessions throughout Michigan:
• Through our Spectrum Project One Module and other outreach efforts with healthcare corporate members, WJG Enterprise, Inc. successfully in diversified from being an automotive plastics parts supplier to become a manufacturer of medical plastic products.
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New/Innovative Programs
F. Results of New/Innovative Programs Developed by MMSDC in 2009 (Page 53)
SECTION F NARRATIVE Description & Results of New/Innovative Program(s)
The Michigan economy was built largely on the success of the automotive industry. The systemic changes in that industry, coupled with the evolving OEM business model, had driven the need for industry diversification. MMSDC sought programs and partnerships that would provide our MBEs with the knowledge, resources and tools to transition to growth industries and gain access to new opportunities.
Product Division, with a full product line of bedside plastic products. In 2009, they received over $300,000 in new contracts for this product line and expect to exceed $1 million in 2010.
MMSDC also focused on enhancing our relationship with government entities and specifically with the Department of Commerce, Minority Business Development Agency (MBDA). As a result of this relationship we were chosen to run a 90 day outreach effort to connect MBEs with opportunities offered through the American Recovery and Reinvestment Act (ARRA). October through December, we held 4 outreach sessions across the state and provided information and resources for MBEs to access the over $700B in contract opportunities offered through ARRA.
We successfully partnered with the Michigan Economic Development Corporation (MEDC) to host a “Diversification Summit� that provided our manufacturing MBEs with information on diversifying into four growth industries; alternative energy, aerospace, defense and medical devices. They were also provided the opportunity to access resources to support some diversification costs. The summit was held May 26th at Lear World Headquarters and was attended by over 100 MBEs.
Diversification was also a focus in the MMSDC Spectrum Project ONE module. A large number of corporate members in this module are in the healthcare industry and have long acknowledged the challenges they face in locating an MBE manufacturer who could serve their needs. MMSDC assisted them in identifying an MBE manufacturer, WJG Enterprise, Inc., who was committed to transiting into healthcare. A pilot project was established to mentor WJG on everything from the importance of workforce education, test trials for new products, establishing relationships with distributors and literature requirements. WJG established a Medical
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MBEIC Committee Activities I. MBEIC Projects (Page 55)
SECTION I NARRATIVE MBEIC Committee Activities
The importance of MBE to MBE mentoring, networking and collaboration has become increasingly important as Corporate America continues to reduce their vendor base and bundle opportunities.
Led by MBEIC Chair, Roderick Rickman, our MIC Committee members re-focused their efforts to provide meaningful activities that address the demands and requirements in the successful bidding for corporate contracts. Monthly industry sector meetings have expanded to cross sector meetings, as well as regional and statewide activities. Additional activities undertaken by the MBEIC include:
Outreach presentations highlighting company specific requirements and opportunities by – • Priority Health – February 25, 2009 • Bronson Hospital – April 29, 2009 • Herman Miller – June 24, 2009 • Michigan State University – September 1, 2009 • City of Grand Rapids and Kent County – November 12, 2009 MBE resource presentations – • Buy Michigan First Program • MSU – Weekend MBE Program • Michigan Jumpstart Program
MBE Symposium “Social Networking Savvy” – how to leverage social media to enhance brand and increase sales 4th Annual All Industry Golf Networking Outing – joint MBEIC sector annual event that fosters MBE to MBE relationships.
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Staff Involvement
J. Involvement with other Agencies or Community Organizations (Pages 57-60)
SECTION J NARRATIVE Staff Involvement with other Agencies/Community Organizations Michigan Economic Development Corporation (MEDC)
Louis Green/ Advisory Board Member
Michigan Securities Network (MiSN)
Louis Green/Founding Member/Board Member
University of Michigan Multicultural Engineering Programs Office (MEPO)
Louis Green/MEPO Advisory Council (MAC) Member
New Detroit The Coalition
Louis Green/Board of Trustees
US Hispanic Chamber of Commerce, Detroit Regional BizFest
Irma Lisk/Judge
Michigan Bar Association
Diane Lee- Member
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Assists and help grow thousands of Michigan businesses each year. MEDC supply customized economic dev. services to help companies and communities, both large and small find success in a very competitive global economy. MMSDC worked with MEDC the a Diversification Summit for minority manufacturers on May 26, 2009
A non-profit organization dedicated to creating homeland security business, investment and job growth. Mr. Green worked diligently with MiSN on its NEI grant submission to its success. As a board member/strategic partner MMSDC assist on initiatives related to new growth opportunities for certified MBEs.
Advisory members provide support to the College and the Directors of MEPO reviewing plans, strategies and results and aids in the development of programs that support the mission. Focusing on initiatives aimed at balancing the differences in the economic outcomes between whites and the communities of color. The gaps are evident in virtually every area of economic engagement. Simply put, not enough Americans are experiencing their highest economic potential. New Detroit and its board members are dedicated to working towards bringing balance. BizFest is part of a series of entrepreneurial training camps in partnership with Ford Motor Company Fund and Community Services, the philanthropic arm of Ford Motor Company. Thirty students from Detroit-area high schools have been selected to participate in this intensive four-day workshop, taking place November 1821st learning how to launch their own business, establish entrepreneurial and leadership goals, create a business plan, identify investment opportunities and other skills needed to become effective business leaders. Licensed to practice law in the state of Michigan. As part of MMSDCs Certification Team, I provide a different perspective and view of applications submitted for certification.
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SECTION J NARRATIVE (cont’d) Lansing Area Pubic Purchasing
James Franklin Group Member
Committee member providing support to various Lansing Area Public Purchasing managers development outreach programs to assistance minority business with procurement opportunities.
Genesee County Regional Chamber of Commerce
James Franklin/Strategic Board Member
Advisory members provide support to the Genesee Regional Chamber of Commerce reviewing plans, and strategies for business development in Genesee County.
Genesee County Economic Development Corporation
James Franklin/Board Member
Rotary Club of Flint
James Franklin/President
The purpose of the Genesee County Economic Development Corporation (EDC) financing programs is to provide gap financing to businesses located in the City of Flint and Genesee County. Gap financing is the amount of funding needed by the business that cannot be obtained from conventional lenders. By participating with conventional lenders, the EDCs can allow for new business startups and expansions to be adequately capitalized. James Franklin provide support in reviewing loan applications and financial strategies for business development.
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The Flint Rotary Club with over 200 members composed of CEO, major business owners, non profits leaders; and local medical centers and university presidents and serves as the economic club of Flint. As the presiding officer MMSDC extended its involvement and community influence in support business development.
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SECTION J NARRATIVE (cont’d) Additional staff involvements with other related Agencies or Community Organizations: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
International Detroit Black Expo, Inc., Civic Board of Advisors African American Business Alliance, Minority Business Roundtable Arab American Chamber of Commerce, Minority Business Roundtable Booker T. Washington Business Association, Minority Business Roundtable Chaldean American Chamber of Commerce, Minority Business Roundtable Commerce Connect Detroit Alliance for Fair Banking Detroit Chinese Business Association, Strategic Partner Detroit Economic Growth Corporation, Strategic Partner Detroit Entrepreneurship Institute, Strategic Partner Detroit Urban League, Young Professionals Advisory Board Eastern Michigan University, Center for Entrepreneurship Advisory Board, Advisory Board Member EZ 200 Business Grand Rapids Area Chamber of Commerce, Minority Business Council, member Hispanic Business Alliance, Strategic Partner Institute for Supply Management (ISM), Strategic Partner Mayor’s Office of Targeted Business Development, Advisory Board Michigan Asian Pacific Chamber of Commerce, Minority Business Roundtable Michigan Association of Female Entrepreneurs, Strategic Partners Michigan Department of Transportation Michigan Economic Growth Corporation, Strategic Partner Michigan Hispanic Chamber of Commerce, Minority Business Roundtable Michigan Indian Chamber of Commerce, Strategic Partner Michigan Southern Christian Leadership Conference, Board of Directors NAACP Detroit Branch Board of Directors National Association of Woman Business Owners, Strategic Partner Native American Business Alliance, Minority Business Roundtable Oakland University School of Business Board of Visitors Regional Alliance for Diversity in Public Purchasing, member Small Business Administration Small Business Technology Development Center State Office of Management and Budget Targeted Business Development Wayne County Community College District Entrepreneur Institute, Strategic Partner Wayne County One Stop Resource Center, Strategic Partner
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SECTION J NARRATIVE (cont’d) Partnerships:
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Presidents, Chair & MBEIC Chairs Activities
K. MMSDC Leadership Activities, Support & Involvement (Pages 62-63)
SECTION K NARRATIVE Presidents, Chairs and MBEIC Chair’s Activities that support the vision and mission of NMSDC PRESIDENT Support of the NMSDC is at the forefront of all of our activities in Michigan and our efforts are worthy of maximum points in this area. We accomplish this first and foremost by providing excellent service to our MBE’s and Corporate members.
national office in protecting the brand.
In addition to participating in NMSDC Quarterly Meetings, the Leadership Awards Dinner and National Conference, MMSDC’s President Louis Green presented and/or spoke at the following activities:
We were fortunate to earn a number of meetings with President Obama and members of his administration regarding economic and urban policy issues. In every meeting we spoke to the importance of the work and impact of NMSDC, its corporate members and MBE’s.
• Met with President Barack Obama to discuss the challenges facing minority businesses in general and Michigan minority businesses in particular. • Provided a seven point policy outline to President Obama that featured the NMSDC. • Met with the Department of Commerce Secretary Gary Locke and SBA Administrator Karen Mills to seek support for our Corporate Plus MBE’s that were impacted by the automotive industry collapse. • We were selected the opportunity to host Commerce Secretary Locke at one of our NMSDC Corporate Plus MBE’s. Secretary Locke made an announcement about programs that would aid small and minority manufacturers • We made introductions and connection for several NMSDC Board members to key Obama Administration officials. • We were awarded an American Recovery and Reinvestment Act grant which enabled us to ensure that NMSDC certified MBE’s were part of recovery dollars. • MMSDC hosts a series of meetings for the U.S. Department of Commerce regarding minority business development in Michigan and the need for manufacturing diversification. As well as opportunities within the US Government. • Toyota – facilitating the Tier I/Minority Business Enterprise panel at the 20th Annual Toyota Opportunity Exchange. The panel addressed OE contract success stories, focusing on best practices for both Tier I Suppliers and MBEs in creating successful and valuable relationships.
Louis Green gave a presentation at the NMSDC April quarterly meeting on how the Michigan Council was facing huge losses in corporate members and MBE’s and the strategy our council was employing to diversify our funding base, our new approach to services, and how we were going to grow corporate membership in a recessionary environment. In response to repeated request from MBEs to be able to access the database so that they could do business with each other we developed an MBE-to-MBE portal. We were very deliberate in the development of this portal. We had multiple conversations and meetings with Harriet Michel to understand her concerns, and developed a system that not only met all of the expressed needs and expectations, but exceeded them.
We vigorously defended the NMSDC against a scheme developed by an organization calling itself MBE Connect. com It seemed very clear that the organization was attempting to build a database of certified MBE’s and gain corporate sponsorships under the guise of social media. They sent invitations to thousands corporations and MBE’s as part of this process.
Moreover, they registered for the annual conference using their certification (not a Michigan company) as a printing company, and then used the artwork for the conference to give the appearance this was related to NMSDC. We worked closely with Steven Sims and Harriet Michel to uncover the fraud and eliminate it. By getting engaged early we were able to support the
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SECTION K NARRATIVE (cont’d) MMSDC MBEIC Chair The MMSDC MBEIC Chair, Roderick Rickman is an accomplished business owner and highly respected advocate for minority businesses nationally, regionally and locally. He is a member of the National MBEIC Executive Board and a Corporate Plus Member. He serves on the board of several organizations that work in conjunction with NMSDC and MMSDC on behalf of minority business development and growth.
BOARD CHAIR During the 1st quarter 2009, it became evident that the worsening economy was having a perilous effect, not only on our current year budget, but also had the potential to negatively impact the Michigan Councils ongoing viability. Having come off a deficit of $900K in 2008 and a projected deficit of over $400K for 2009, the MMSDC Board Chair took immediate action. He established a Corporate Membership Committee comprised of Board members, convened bi-weekly Executive Finance Committee meetings and directed MMSDC to develop:
Rod was instrumental in MMSDC gaining access to President Obama and others in the federal government at a time when government intervention was vitally important to the future of minority businesses in general and Michigan MBE’s in particular.
• Budget scenarios reflecting 20%, 50% and 70% reductions in revenue, including headcount reductions of 3 to 14 • Analysis of Corporate Member engagement in MMSDC, including a projection of membership retention • Evaluation of MMSDC Signature Events to determine member and MBE commitment to support specific events, the value to members and MBEs, and the projected profit margin based on the current economic reality
In addition, Rod participated on a committee to develop the MBDA Diversity Summit and the roundtable for the Center of Excellence. He also supports and participates in the Billion Dollar Roundtable. During 2009, Rod worked directly with NMSDC, Vice President of Programs and Field Operations, Steven Sims and collaborated with several administrative secretaries’ including Commerce, Energy and Dept. of Transportation, as well as the directors of the MBDA and SBA. He provided input and strategies on issues that impact urban MBEs nationally and submitted a White Paper on “how finance accessibility through urban banks was needed.”
As a result of the above MMSDC: • • • •
Cut operating costs 22% Changed the format of all signature events Maximized event profit margins Increased cumulative member and MBEs satisfaction of our signature events • Gained an all time high of 59 new Corporate Members, with 48 of those corporations joining in the last 7 months of the year • Closed the $400K budget gap and met original 2009 budget projection
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He also worked with Steven Sims on international business affairs in Brazil and planned development in 2010 through-out South America.
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Recognition
L. Awards and Recognition (Pages 65-67)
SECTION L NARRATIVE Awards to the Council in the last year Quotes from our MBEs and Corporate Members
Though MMSDC faced many challenges in 2009, we endeavored to provide the highest level of service possible to our MBEs and corporate members. We were determined to reflect the excellence of NMSDC and continue to move forward with the mission set before us. National recognition is great, but the recognition of the ones you serve is truly humbling as seen below:
The MMSDC is a true champion for diverse suppliers. They work tirelessly to help us improve our business by exposing us to continious education opportunities such as workshops, seminars or through partnerships with companies such as Google. The MMSDC has helped our company secure new business through its annual procurement event. This event continues to be one of our best opportunities to market our products to new customers and also gives us a rare chance to meet key stakeholders from various organizations. Christopher Naidoo Sigma International
The annual Urban Wheel Awards honor automotive companies, executives, suppliers, dealers, motorsports organizations and automotive advertisements that recognize the growing clout of multicultural consumers.
An independent panel of noted journalists determines the winners. The top three finalists in each category are heralded worldwide through a global promotions campaign. The winner in each category is presented an award by a cast of nationally known celebrities at the annual Urban Wheel Awards program, held during Press Week of the Detroit Auto Show. MMSDC was the recipient of the “Stimulating Minority Business” Award. In July 2009, MMSDC’s Minority Business Enterprise Center received Recognition of Achievement from the U.S. Department of Commerce, Minority Business Development Agency for “Overall High Performance” in serving minority businesses.
The year of 2009 chugged along like some of the previous years of recent history, then suddenly it became very uncertain because of the financial situation of most U S businesses. It reminds me of the commercial showing the Mega Corpoation sneezing and My S Corporation catching the Flu or worst. Avery Heningburg Focus Recovery dba FPS and Associates Inc.
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SECTION L NARRATIVE (cont’d) MMBDC is the most forward thinking and advanced of all Diversity groups we belong to. We are proud to be a member.
I have been a member of the MMSDC for over 15 years and have been very fortunate to have the opportunity to sit at the decision making table with some of the most successful MBE and Corporate business leaders in the Nation. It was a surprise and honor to receive the local, regional and national recognition from this great organization last year.
Dave Christie-partner Grupo Logico, LLC
We increased our client base substantially during 2009, with many of the new clients coming through the MMSDC network.
Pamela Murff-Jackson PLM Staffing Systems
Jim Roberts Jim Roberts Enterprises LLC
We have enjoyed its long standing relationship with the MMSDC. The employees and individuals assigned to the MMSDC have been very helpful with information and suggestions. Leonora K. Baughman Kilpatrick & Associates, P.C.
We are a proud member and find our relationship extremely valuable. Brandon Bordeaux CaravanKnight Facilities Managemet LLC Our experience in 2009 in MMSDC has been 100% positive! We appreciate the business opportunities updates and the assistance of staff in answering re-certification questions and resolving issues. MMSDC stays in constant communication with the membership and provides critical information to help us grow.
Speaking on behalf of my leadership team, I can honestly say our experience with the MMSDC has been invaluable! The unlimited access to the MMSDC staff’s reservoir of knowledge served as one of a few resources in our business diversification efforts and was crucial to our longterm survival.
Diane P. Reeder BPI Communications
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John A. Banks Motor ShopElectrical Construction
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SECTION L NARRATIVE (cont’d) We appreciate the excellent service we receive from our MMSDC suppliers!
MMSDC has been providing outstanding support to region and all their customers by providing outstanding leadership. As MBE for more than 5 years, we are really thankful for providing connection to Corporation and NMSDC. We would like to wish continued success for MMSDC.
Tony Nader Budco
Sanjiv Shah AMBE Engineering, LLC
Despite the economic challenges in 2009, Michigan Minority Supplier Development Council remained steadfast in providing high quality programs and services to its members. A notable example was the Annual Corporation of the Year Awards Dinner. Although the cost of the event was significantly reduced the event was superb. Barton Malow is proud to be apart of an organization that is truly commitment to its customers! Cheryl Bowlson Barton Malow Company
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Support and Marketing of Business Consortium Fund (BCF) M. BCF Support (Page 69)
SECTION M NARRATIVE Support and Marketing of the Business Consortium Fund (BCF) Access to capital was the number one concern for many MMSDC MBEs during 2009 and the availability of BCF funds grew in importance. Our efforts to market and inform MBEs about the BCF included: • Mark Harrison of BCF featured at the 2009 MMPC • After the session, Mr. Harrison provided individual consultations to participants • Recommended BCF through MMBEC workshops, seminars, and training programs • BCF was featured on the MMSDC website with a direct link to the BCF site • We introduced MBEs to BCF through bi-weekly certification orientation briefings • Provided assistance to MBEs to complete their BCF paperwork
MMSDC should receive the maximum points for support of the BCF because of our integration in our key signature event and regular presence on the MMSDC website.
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Encouraging MBEs To Do Business with Other MBEs N1. MBE-to-MBE (Page 71)
SECTION N1 NARRATIVE Encouraging MBEs to Do Business with Other MBEs MBE to MBE contracting is critical to a sustainable minority business strategy. We promote strong economic ties among and between our MBEs.
We developed an MBE-to-MBE business portal. While developing this program, it was important that we maintained our integrity and that of the MMSDC database. Through our efforts and the assistance of Harriet Michel, Steven Sims and the NMSDC staff this portal was approved as beta project for the Michigan Council only. We believe that it will be a viable tool that can be approved for roll out to other councils in the network. We communicate with our Corporate Plus MBE’s about the importance of recycling dollars in the certified MBE community. We had strategic alliance meetings where our MBE’s analyze available and emerging opportunities in each industry and determine where and how they might partner.
All of our Project ONE module meetings had a MBE-toMBE component. Our MBE sector meetings also focused on MBE project collaboration.
Our MBE’s also partner to with the Minority Retailers and Merchants Association to utilize minority owned businesses in that space. (Gas Stations, Hotels, Conference Centers, Restaurants, Catering Entities etc.)
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Communication/Coordination With NMSDC O. Involvement with NMSDC (Pages 73)
SECTION O NARRATIVE To what degree does your Council communicate/coordinate with the National Office to support your local operation?
MMSDC has ongoing dialogue throughout the year with various staff members of NMSDC regarding Council operations, activities and opportunities. We have a rule. When in doubt, call. Specific involvement included:
During 2009, our MBEIC Chair Roderick Rickman worked directly with NMSDC, Vice President of Programs and Field Operations, Steven Sims and collaborated with several administrative secretaries’ including Commerce, Energy and Dept. of Transportation, as well as the directors of the MBDA and SBA. They provided input and strategies on issues that impact urban MBEs nationally and submitted a White Paper on “how finance accessibility through urban banks was needed.”
• The Michigan Council participated in NMSDC certification training • The Michigan Council attended the NMSDC MBISYS training • The Michigan Council participated in every quarterly meetings • The NMSDC National Conference was attended by MMSDC management staff, twenty-one Board members and a large contingency of MMSDC members and MBEs • Attended the NMSDC Minority Business Leadership Awards Dinner • Special growth and development plans for Corporate Plus MBEs • We increased our focus on insuring the integrity of our certification process by aggressively going after “MBEs” that were no longer certifiable. We consulted Steven Sims for guidance and support • Worked with the NMSDC Executive Team and MMSDC’s MBE Computech Corporation to develop a MBE to MBE Portal that would facilitate and increase MBE to MBE procurement and provide safeguards against proprietary concerns and issues. Received NMSDC approval in the 4th quarter of 2009 to conduct a Pilot Program over the next year. NMSDC will monitor results and determine the products viability for use by other councils
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Rod also worked with Steven Sims on international business affairs in Brazil and planned development in 2010 through-out South America.
Maintaining the integrity of the guidelines NMSDC has established has always been in the forefront of our activity. Whether certification or new program offerings, we endeavor to communicate with NMSDC to ensure compliance which is a key reason to give us the maximum points.
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Challenges Confronting Your Minority Business
P. Support of MBEs During Economic Downturn (Pages 75-76)
SECTION P NARRATIVE Please describe in detail what your council is doing to address the challenges confronting your minority businesses. These actions can range from public policy activities to outreach to contract identification to whatever other tactics/strategies/activities that support the continued survival of your businesses: • Roundtable networking sessions • Revised the format of the Annual Awards to allow more time to network • Updated the Supplier Diversity Summit to include a special session called “Profiles of Success” which provided MBEs with insight on what it takes to be a key supplier • Survival Through Bankruptcy Seminar. This seminar not only addressed the implications of the impending bankruptcies of the largest automotive manufacturers, but also helped MBEs to see if bankruptcy was an option to help them stay in business.
The Michigan Council devoted a significant portion of our efforts in 2009 on this issue.
We met with President Obama, Treasury Secretary Geithner, Commerce Secretary Gary Locke, Rick Wade and other officials to ensure that MBEs in Michigan and across the country would not be an afterthought in the major policy discussions that were changing the economic landscape.
We established partnerships to help our MBEs diversify their company’s beyond the automotive market through several efforts which included winning competitive bids for programs to support our MBEs. These included: the American Recovery and Reinvestment Act (ARRA) grant from the U.S. Department of Commerce, and the New Economy Initiative and Kauffman Foundation UEP Detroit 150 program designed to help the 150 largest minority automotive suppliers diversify into growth sectors of the economy.
ACCESS TO CAPITAL
While access to adequate funding for minority businesses has always been challenging, in 2009 it was virtually impossible. Financial institutions were not only unfriendly in releasing new money, but were calling in loans at an alarming rate. Even well established MBEs with unblemished credit found their loans called and lines of credit reduced or not renewed. This was particularly true with businesses related to the automotive industry.
We provided valuable and specific information about market diversification for all of our MBE’s. There were four targeted growth industries: Aerospace, Defense, Wind Energy and Medical Devices. MBEs were given information on supplier requirements and expectations, as well as next steps from industry experts in these four targeted industries. • We focused on promoting additional MBE-to-MBE spend and developed a portal to help facilitate the additional spend. • We lowered the cost to MBEs on several of our programs. • We marketed our MBE’s as new business alternatives for corporations looking to take cost out of their supply chains. • We put together a toolkit and process and a commitment that enabled Corporate Supplier Diversity departments to remain viable through 2009 even if their staff was reduce or eliminated. • We created more opportunities to network with corporate members. Activities included:
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MMSDC worked diligently with financial institutions, federal agencies and alternative funding sources to identify resources available to MBEs. We implemented additional programs in 2009 in addition to our ongoing intervention on behalf of MBEs, other specific activities were:
• Fifth Third Bank Diversity Outreach – February 19th, introduced various Fifth Third lending programs offered to MBEs and small businesses • Access to Capital – May 6th, panel discussion featuring representatives from: • JP Morgan Chase • Business Consortium Fund (BCF) • Small Business Administration (SBA)
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SECTION P NARRATIVE (cont’d) • Senneca – Venture Capitalist • United Bank’s SBA Summit – May 29th, share information about SBA programs offered through United Bank • Accessing Capital in a Troubled Economy – August 11th , Huntington Bank, Michigan First Credit Union, Shorebank Enterprise Detroit, Crestmark Bank, Downriver Community Conference and James Ralph Agency provided information on: • When to use traditional, alternative and other sources of financing • Preparing your business for a successful loan application • Do’s and Don’ts in obtaining financing • How to position your business to access bonding requirements
MMSDC should receive the maximum points for addressing the challenges confronting our minority businesses. We served MBEs with passion and a strong commitment to helping them weather the economic hurricane facing Michigan. We provided innovative solutions and training. We went to the highest levels of government to garner support for all certified minority businesses.
We could have no better partner than the Michigan Minority Supplier Development Council. They are passionate in their commitment to minority businesses in Michigan and across the country. I am impressed by their ability to make a measureable impact in the boardrooms of corporations and in the bottom line of their MBE’s. It is absolutely amazing to see what they are able to accomplish under some of the most difficult circumstances you could imagine. If we could replicate Louis and his team in all 50 states, minority business profitability and economic opportunity would grow exponentially. Daryl Williams CEO, Urban Entrepreneur Partnership Inc. (UEP) Kauffman Foundation
Michigan Minority Supplier Development Council
76
2010 Council of the Year Application
IV. Attendance Sheets (See Enclosed Disc)
Michigan Minority Supplier Development Council
78
2010 Council of the Year Application
11
The number of countries outside of the Untied States that viewed our website for minority business news
6
New Project ONE (COE) Modules
70+
34%
76.4% of our MBE state that more than half of their business is tied to the automotive industry. 70% of them expected to file bankruptcy without the intervention and assistance of the Michigan Council
$11.7 Billion The amount in contracts for our MBEs
51
Michigan’s Employment Rate according to the Bureau of Labor Statistics (D.C is included as a state in this report)
$31 Million
Increase in corporate members reporting from 2008
The amount of contracts for Minority Businesses we were able to generate from a U.S. Department of Commerce grant
100
$500,000
The ranking of Detroit’s economic strength by the Brookings Institution in the Top 100 metropolitan areas in the United States
The amount of the training grants we were able to secure for our MBE’s that completed our diversification plan
Michigan Minority Supplier Development Council 2010 Council of the Year Application