business growth strategies-part1-presentation
DESCRIPTION
Presentation for the Business Growth Strategies: Creative Collaboration and Partnerships session.TRANSCRIPT
Creative Collaboration and Partnerships
May 24, 2011
Your Panel
• Jeff Dolven, Skookum Enterprises [email protected]
• George Marshall, Haywood Vocational [email protected]
• Brad Collings, Secure Document Alliance
• Facilitator: Peter Brinckerhoff [email protected]
Our Agenda
• Some Context Setting
• Panel Presentations
• Questions
What about Collaboration and Partnerships?
• There is potential benefit, and risk.• Partnerships and collaborations have much better
outcomes (in terms of the research) than do nonprofit mergers.
• Partnerships and collaboration are often forced by funders.
• The key questions?........
The Key Questions
• Does this action (partnering or collaborating):–Add a core competence we don’t have
• A skill competence• A population competence• A location competence• A business competence
–Result in one or more of the following:• More mission• Better mission• More efficient mission• More effective mission
Panel Presentations
• Jeff Dolvan-Skookum Enterprises, who will tell us about Connect.
CONNECTCollaboration of 14 Puget Sound
Based Companies
CONNECT Generative Thoughts
• Boeing CMP program created/fostered unique and extraordinary technical aerospace manufacturing capability in Seattle area
• AbilityOne Program is gaining “traction” within Federal acquisition community– Will create opportunity for NPAs as vendors and
subcontractors to the big guys (Boeing, Lockheed, etc.)
• Non-Profit Companies with similar social missions have much to gain by collaborating
CONNECT Believes…
• Whole is greater than the sum of the parts– Together we can pursue projects that are too large or complex
for any one CRP– Leverage each other’s strengths– Use each other as vendors and subcontractors
CONNECT History
• First met in 2009– No formal structure in place– Invitations to participate sent to more than 2 dozen NISH/NIB
affiliated NPAs– First year spent “forming”
• Received grant from NISH and engaged a paid coordinator in 2010– 5 member Executive Team formed and empowered to do
“strategic thought”• Competitive Positioning• Capabilities• Value Proposition
– Agreed to hire full time Executive to run CONNECT
CONNECT Today
• 2011 finds us “operationalizing” CONNECT– Developing sustainable funding stream
• Member dues• 3 Year NISH grant (decreases in amount each year)• Sales driven
–Finalized membership at 14 NPAs• One NIB producing Agency• 5 NISH producing Agency• 8 NISH affiliated Agency
–Hired Melinda Jenks as COO in February• Finalizing Marketing Material (blended look)• Focusing on selling aerospace parts, then listening to our
customers to see what may be next
CONNECT Challenges
• Allocation of work– We’re not all aerospace companies…– Long sales cycle demands patience– COO empowered to source work to member agencies
• Consortium administratively awkward– Creating central 501(c)(3)– Must be responsive to play
• Selling customer service and technical expertise, not social mission
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Our Next Panelist:
• George Marshall, from Haywood Vocational, who will tell us about MARC.
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Collaborative Model for
Jobs CreationAn initiative of MARC, Inc.
in partnership with HVO, Inc.
Description Summary of MARC, Inc.
Description Summary of HVO, Inc.
Collaborative Project: MARC Custom Medical Products (MCMP)
• Reasons for Initiating Project – HVO, Inc.– Growing demand for medical products by HVO customers– HVO’s current facilities unable to meet growth demand
• Reasons for Developing Project – MARC, Inc.– Members needed to develop stronger manufacturing base– High unemployment rate among adults with a disability or other
barrier to employment
• Project Objective-– To establish qualified suppliers of disposable medical products
among members of the MARC/MCMP consortium in collaboration with HVO, Inc. who, using their branding, shall lead the sales and quality compliance efforts in order to create job opportunities for persons with and without disabilities within the consortium.
Steps Implemented
1. Business Plan
2. Operational Agreement
3. Funding Plan
Results of Collaborative Project: July ’06- Dec.‘10
• Six manufacturing (member) partnerships created• Total created and retained jobs: 420
– 256 new jobs created– 164 jobs retained
• Number of jobs created/retained w/disability: 184• Wage range w/full benefits: $10- $13 per hour• Total sales since July 1, 2006: $21.2 million• Sales forecast current year: $7.5 million• Annual economic impact: $23.1 million
Funding
$1,552,144Member in-kind
Cash$305,000
Total Grant Funding
$2,708,000
Lessons Learned: What went well
• More is better
• HVO had “platform” business developed over 30 years
• “Don’t leave home” without a business plan
• Integrated workforce works; both for parity and profit
Lessons Learned: Problems encountered
• Timing business growth with adding capacity
• Underestimated the amount of time it would take to get “Quality Management Systems” in place within each partner’s manufacturing operations; an essential requirement
• Underestimated the amount of time it would take for “new” manufacturing operations to become profitable at respective partner/member business
Essential elements for success
1. Competent leadership2. Confident, experienced managers3. Business planning4. Fund development and grant writing5. Patience6. Trust at the level of supporting collaboration and trust at a
higher level7. Communication8. Planning and Scheduling9. Manufacturing setup and operations10. Specific knowledge (i.e. FDA regs, QSR)11. Devine intervention and luck!!
Other Existing Collaborative MARC Initiatives
• Outsource
• Health Benefits Program
• Quality and Business Development
• Parity Initiative
Recognition & Future goals
• Future goals– Grow additional 100-125 new jobs over next 2 years– Consider additional manufacturing partnerships among
MARC members
• Recognition– The collaborative initiative of the “MARC Custom Medical
Products” was chosen by the Lodestar Foundation’s 2011 Collaboration Prize as one of 20 semifinalists among 807 entries nationwide. (www.thecollaborationprize.org)
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Our Third Panelist
• Brad CollingsPresidentSecure Document Alliance
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Creating Opportunities Locally While Serving Customers Nationally
About SDA
• Formed in 2005• Represents over 75
individual non-profit members
• Members provide document destruction services in every state in the U.S.
Our Model
Our Vision
SDA’s vision is to increase employment opportunities for people with disabilities by expanding
commercial document destruction business at local, regional, and national levels.
Service Offerings
• Secure Document Destruction• E-Waste (electronic disassembly)• E-Media
Destruction• Recycling
Services• Document
Management
Our Members
Our Achievements
• SDA Members earned more than $22 Million in Destruction Revenue in 2009.
• Over 20,306 Commercial Businesses use SDA Member Services
• The most important part: Our members employed over 2,212 people with disabilities through the Document Destruction Line of Business.
2009 Member Statistics
• Avg Revenue $484,510.01– Increase of 25% over 2008
• Avg Pounds Shredded – 2,390,900– Increase of 32% over 2008
• Avg # of People with Disabilities Employed - 26– Increase of 53% over 2008
• Avg # of Customers per Member – 439 – Increase of 75% over 2008
Bayaud Industries – Denver, CO
Columbus Secure Shredding – Salt Lake City, UT
Goodwill Secure Shredding - Los Angeles, CA
Goodwill of Southern CaliforniaE-Waste Facility - Los Angeles, CA
Goodwill of Southwest Florida North Fort Meyers, FL
MONCO Enterprises – Dayton, OH
Questions?
• Any questions for our panelists?
Thanks for coming!
• At 3:30, this track will continue with a panel on Mergers, Acquisitions and Planned Expansions.
• I hope to see you there.
Session Evaluation Instructions
SESSION TITLE: Strategies1
SESSION CODE: CRP-T130