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CHICAGO MINORITY BUSINESS REPORT • AUGUST2012
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The power of ChicagoMSDC!
ChicagoMSDC LINKS Fortune 500 Buyers with Minority Suppliers... MBE Affiliates include: African-American Asian Pacific Asian Indian Hispanic/Latino Native American
105 W Adams Suite 2300 Chicago, Il 60603 312-755-8880
MBE Business types include: Manufacturers Products Service Providers Professional Services Consultants Retail Distributors Construction
chicagomsdc.org
ChicagoMSDC MBE affiliates have created over 98,000 jobs & counting
Cano Container
CBOF 45 Ribbon Cutting
Sandeep Nain & Governor Quinn at Stock Exchange
John Rogers (Ariel Investments) & Jeff Taylor (Monster.com)
...ChicagoMSDC: Thought leader in minority business since 1968.™ BRIDGEFORTH WOLF & ASSOCIATEs, INC.
corporate gifts
ChicagoMSDC Staff Shelia Hill Morgan President & CEO Phillip Barreda Executive Vice President
Chicago Minority Supplier Development Council, Inc. | 105 W. Adams Street, Suite 2300 | Chicago, IL 60603 | www.chicagomsdc.org Julia Guan Certification Manager / IT Specialist Gloria A. Blake Certification Specialist
Cynthia L. Jordan Director of Events
Hans Bonner Executive Director MBDA Business Center Chicago
Gwen Jones Project Manager / Executive Assistant
David Thomas Senior Manager, Bus. Development MBDA Business Center Chicago
Joshua Gutstein Senior Financial Consultant MBDA Business Center Chicago Megan Nakano Business Consultant MBDA Business Center Chicago
Consultants
Shondra E. Watson-Wilson Procurement Consultant MBDA Business Center Chicago
Tricia Wynn Project Director Northwest Indiana MSDC
CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
Milana L. Walter, J.D. Communications / Writer
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Editor’s Note Time speeds by, doesn’t it? This Annual Meeting issue of CMBR closes out 2012. The feedback has been nothing short of this: CMBR has ignited an elevated level of communication for ChicagoMSDC members. It is the vehicle for the voices of ChicagoMSDC and MBEIC.
Milana L. Walter, J.D. Editor-In-Chief
Business happens when buyers and suppliers connect beyond a superficial level. Period. The Council’s mantra has been to provide an environment and support for their membership to get to know each other, build relationships and explore the possibilities of making business happen. To that regard, CMBR has the privilege of access to some of the most dynamic Chicago-based figures in the corporate and business world. Their stories are informative, insightful and inspiring. Inspirations: Many thanks to Ruby McCleary who worked relentlessly through a painful post-surgery recovery to meet deadlines on the United Airlines cover story; to Mayor Emanuel and Team Emanuel: Tarrah Cooper, Tom Alexander, & Shannon Loredo; Nate Sutton and his commitment to his employees’ healthcare; Michelle Lechega’s determination and eye for design; Winnie & Henry Chan’s integrity in product development; Earnie Ellison of the PGA; and James Williams of University of Chicago Medicine, just to name a few. CMBR is a communications vehicle for ChicagoMSDC to control their message: the timing as well as the concept. Very much like Black Enterprise has served a business community that was marginalized by Forbes, Inc and more. They have a cross-media strategy which includes print, Internet and television. In my opinion, the time is ripe to explore a television show presence again, one the Council executive produces. To be continued... Many thanks to Victor, Shelia, Joyce, Cynthia, Dave & Josh and the layout team/printers Abby, Caress, and Eric. And congratulations to interns Casie Walls and Conora Shaw who excelled in their initiation by fire. Happy New Year!
Cynthia L. Jordan Editorial Liaison
• Milana
twitter@ChicagoMSDC
publishing team Chicago Minority Business Report (CMBR) is a publication of the Minority Business Enterprise Input Committee of ChicagoMSDC.
www.chicagomsdc.org
President & CEO ChicagoMSDC Shelia Hill Morgan MBEIC Chair Joyce Johnson President & CEO, Anchor Staffing, Inc.
Art & Design Director Eric Harland MBEConnect, LLC.
CMBR Editor-In-Chief Milana L. Walter, J.D. CMBR Editorial Liaison Cynthia L. Jordan CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
Graphic Designer Abby Rufkahr MBEConnect, LLC. Contributors Josh Gutstein Dave Thomas Casie Walls
Photographers Jared Kelly Dwight Phillips Victor Powell Dot Ward Cover Photo Victor Powell Dot Ward
Communications Intern Casie Walls Events Intern Conora Shaw
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feature articles
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Supplier Diversity MOVES
UNITED AIRLINES NOW The Big PIcture
Chicago Transit Authority (CTA)
Omar Brown Navistar, Inc.
Edi Guerra Mondelez International, Inc.
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Vickie Hsi
Staples, Inc.
Lesa Rivers
The Q & A
Nielsen
Lamont Robinson
Shelia Hill Morgan & MAYOR EMANUEL
Kraft, Inc.
Latonya Seanior
Congratulations to UBM Facility Services, Inc. named as NMSDC National Supplier of the Year!
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THE SUTTON FORD STRategy PEOPLE MATTER
What’s inside Page 14
THE PGA of america hole in one
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MBE TO MBE CollaborationS OFFICE SPACE: THE LITTLE ENGINE THAT COULD GLOBAL PARTNERS UPDATE University of Chicago MEDICINE Supplier Diversity Honored Value of INTELLECTUAL PROPERTY MAYLAN SKINCARE SECRET TRICIA’s WIN-Win THE NMSDC GROWTH INITIATIVE Growing PMI Systems EVENT UPDATES Photo Gallery
CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
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THE Q & A
Shelia Hill Morgan & Mayor Rahm Emanuel Whether in a lingering economic downturn or in times of a robust economic upturn, ChicagoMSDC is proud to contribute to the efforts of Mayor Rahm Emanuel to bring jobs, commerce and global focus to the great city of Chicago. – Shelia Hill Morgan, President & CEO Already, we are at the end of 2012 and on the doorstep of 2013. Our country and our city have weathered many storms in a few short years. Under the dynamic, measured leadership of Mayor Rahm Emanuel, Chicago has evolved from “the Second City” to Chicago: Second to None.
Rahm Emanuel Mayor of Chicago
Shelia Hill Morgan President & CEO
Under Shelia Hill Morgan’s leadership, ChicagoMSDC has grown as ‘a thought leader in minority business since 1968’. In the past, ChicagoMSDC has had polite relationships with former Chicago Mayors. CMBR sought the opportunity to pursue this important Q & A exchange to communicate to Mayor Emanuel ChicagoMSDC’s track record and intention to support Chicago in tandem with the City’s goals. Here is what Mayor Emanuel had to say. SHM: How successful has the public-private sector partnership been with the minority business community and contractors? RE: Our efforts to foster business growth in the minority business community have been quite successful. In the past 18 months, a number of programs have been launched to foster growth in this critical area. The City has already announced many initiatives designed to expand opportunities for small, women and minority owned businesses, including the Small Business Initiative; the Phased Graduation Program; Local Manufacturing Preference; Expansion of Local Business Preference; and the Diversity Credit Program. And we’ve made many reforms within the Department of Procurement Services with respect to the M/WBE Program, including a number of initiatives to strengthen oversight and compliance by both vendors and City personnel, such as unannounced visits to the City’s work sites to ensure M/WBE compliance, and training classes for prime contractors and subcontractors on compliance with City regulations and policies, including stressing that vendors are required to report suspected fraud or wrongdoing to the City. In February, the Mayor announced that the City would use an $11 million settlement from a dispute with Allied Waste Transportation, Inc. exclusively for the development and improved administration of the City’s Minority-Owned and
Women-Owned Businesses (M/WBE) programs and the encouragement of M/WBE participation. Strengthening minority- and women-owned Chicago businesses empowers residents in all of our communities and enhances Chicago’s overall economic position. SHM: How can we leverage the development and growth with our sister city of Toronto, Canada and other ChicagoMSDC partnerships? RE: First, we are always looking for companies that are seeking to expand into the United States. Chicago is a thriving business community and welcoming headquarters and corporate locations is a key focus of the administration. World Business Chicago has been working directly with the staff of the Mayor’s office, and they are in good position to work with potential companies that are thinking about coming to Chicago. Second, the City has set as a goal a doubling of the exports from Chicago companies in the next five years. There are many companies that don’t export at all, or export only to one company. So the opportunity to expand exports into these key countries is a key opportunity. SHM: Will the City of Chicago accept ChicagoMSDC MBE certification under your watch? RE: The City of Chicago is currently working with Cook County towards achieving MBE and CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
WBE certification reciprocity. While we hope to complete this process as soon as possible, so that our vendors can save time and money, while also increasing the value of their MBE and WBE certifications. However, reciprocity it is a complex task which requires the City and County to thoroughly review our respective certification rules and regulations so that we can be sure that the City and the County have uniform eligibility criteria for MBEs and WBEs. After the City County M/WBE certification reciprocity project is complete, the City will begin to review other certifications, such as the MSDC certification, to determine if we can successfully extend reciprocity to these certifications as well. SHM: If small business is “the backbone of the economy”, how do you see ChicagoMSDC joining with the City to further develop strong, high growth suppliers to contribute to a more robust Chicagoland economy and tax base? RE: Under my leadership, the City has undertaken a variety of initiatives to promote the growth of local small businesses. Earlier this year, the Chicago City Council passed the “ChicagoFirst” procurement ordinance, which created a local manufacturing incentive and also expanded the bidding preference given to Chicago-based businesses on City contracts. In addition, the City Council recently passed an ordinance authorizing the creation of a MBE/ WBE mentorship program, which will give prime CONTINUED ON PAGE 6
CMBR contractors up to five percent (5%) MBE or WBE utilization credit for transferring their knowledge of successful business practices to the City’s small MBE and WBE businesses. The mentorship program will help level the playing field for MBE and WBE businesses in the City and will help them advance toward the goal of being competitive job creators in the City. The City has also implemented a Small Business Initiative, which is specifically designed to encourage small businesses to participate in City-funded construction projects. The program is race and gender neutral, is exclusive to small businesses, and is limited to construction projects that are under $3 million in total cost.
SHM: What would you like to leave CMBR readers with on your position regarding economic equality in the 3rd largest market in the United States? RE: We believe that in order to create a healthy, sustainable and strong economy, every individual and business, and in particular, every small business, must have equal access to business opportunities. The initiatives described above, such as the Small Business Initiative, the Mentorship Program and the Diversity Credit Program, are creating real opportunities for our City’s small businesses on both public and private sector contracts. Through these efforts, we are seeing small businesses, Minority-owned businesses and Woman-owned businesses continue to grow. As our City’s small businesses grow, we will all benefit from increased employment as well as the diversity of ideas and opportunities that go hand-in-hand with an expanding and well-rounded economy.
www.chicagomsdc.org
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MINORITY BUSINESS ENTERPRISE INPUT COMMITTEE We’re going to help MBE’s do some capacity building to help push them up the ladder. – Joyce Johnson, Chairman - MBEIC
Finally, the City has created the Diversity Credit Program, which is designed to increase the use of small MBE and WBE businesses on private sector contracts. The City will provide Supplier Diversity participation credit on City contracts for contracts that are awarded in the private sector. For every $3 of private sector contracts, $1 in credit will be issued to the contractor, which can then be used to provide up to 5 percent MBE or WBE utilization credit on a subsequent City contract. The City hopes to work with agencies such as MSDC to educate the local small business community about these programs so that we can work together to increase this critical engine of growth in our economy. In addition, the City anticipates engaging in a continuing dialogue with MSDC and other local agencies for new ideas on how to create new and increased opportunities for local small businesses.
Certification Expectations
Joyce Johnson Chairman, MBEIC; President & CEO, Anchor Staffing, Inc.
Joyce Johnson started her company because she wanted the freedom to work for herself. Since 2002, Anchor Staffing, Inc. has developed outstanding partnerships with some of the largest companies in the world while maintaining a local focus which allows Anchor to experience growth and a multi-million dollar annual revenue. Johnson is said to be a guru in sales who innately understands the dynamics of relationship building and the process thereof. As Chairman of ChicagoMBEIC, she wants to see more MBE’s succeeding.
Newly certified? What expectations do new MBE’s really have? Once ChicagoMSDC issues the Certificate of Certification, the MBE should expect to be active and strategic with ChicagoMSDC and other partners and resources in pursuit of knowledge and business opportunities. Being certified does not guarantee automatic contracts. Certification can be an edge if perceived in that regard. The edge being in the ACCESS to corporate and government buyers who many times are in the same room and accessible at ChicagoMSDC educational and networking events, CBOF, Scholarship Golf Classic, Annual Meeting/Holiday Party and more. Select. There are additional costs to participate in some events or seminars. Don’t be penny-wise and dollar-foolish and miss out. Work it and pitch it with persistence and a solid plan of action. Build relationships.
Are you ready for the big contract?
If not, it is ok. What do you need to get ready? Is partnership with another business the way to go? On the next page are a few examples of MBE To MBE Collaborations. CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
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THEY ARE: Dr. Karen A. Eng, President of CSMI; a specialized engineering and design firm that assist clients with improving their production and packaging lines, is doing business with Jackie Clark-Muhammad, founder and CEO of Solutions Associates Consulting (SAC). SAC is a woman and minority owned technical consulting and project execution firm for the good and consumer foods industry. www.csmius.com /////// www.saconsultinginc.com
Poonam Gupta-Krishnan, President and CEO of Iyka Enterprises Inc; a diverse supplier that provides sustainable technology solutions to public sector and private sector businesses, is doing business with Solai & Cameron Technologies; a business that specializes in providing information technology solutions to corporate, government, education and healthcare organizations. www.iyka.com /////// www.solcam.com
Blue Ocean Logic; a company that supports the efforts of small to large public, private, government and non-profit sector organizations nationwide ranging from sales and marketing program design, technology solutions to training and professional development, subsidiary, Life Link Data; a Washington-based MBE corporation that develops products for mid-market and enterprise IT departments to remotely control, manage and protect confidential data on portable storage devices in real time to reduce the risk of data loss and theft, is doing business with Herb Stokes, CEO of Affluence Group. Affluence Group focuses on promoting growth and development of small and medium sized businesses. www.lifelinkdata.net /////// www.blueoceanlogicgroup.com /////// www.theaffluencegroup.biz
Blue Ocean Logic is also doing business with the following; Janny Leung and Bernie Leung, owners of Mesa Technology, an infrastructure consultant which includes on-premises and cloud solutions for mid-sized companies; South Coast Paper, an independently owned and sales and marketing company offering a diverse line of high quality paper products. www.blueoceanlogicgroup.com /////// www.mesatechnology.com/mesa/about.jsp /////// www.southcoastpaper.com/overview.html
Charles H. Harrell II, President of The Information Technology Architect Corporation; an innovative technology and communications firm that designs, implements and manages the automation of business processes and building controls for corporations and government agencies, is also doing business with Herb Stokes, CEO of Affluence Group. www.theitarchitect.net /////// www.theaffluencegroup.biz
Thomas L. McLeary, President of Endow, Incorporated; a multi-line insurance services company that specializes in insurance planning and benefit management for a client base which includes public entities, small and large corporations and individuals with large net worth, is doing business with the following: Jackie Dyess, President of Inter-City Supply Co, Inc; a distributor of basic business supplies; Mr. Lawrence I. Hollins, Founder and President of The Hollins Group; a global retained executive search and professional services firm that offers unique recruiting and assessment solutions to meet their select clients’ most critical leadership needs; and Joyce Johnson, Founder, President and CEO of Anchor Staffing, Inc., a workforce solutions company that focuses on the specific business needs of their clients and becomes a strategic partner who understands the importance of an effective and productive workforce. www.endowinc.com /////// www.intercity-supply.com /////// www.thehollinsgroup.com /////// www.anchorstaffing.com
Anchor Staffing, Inc. is also doing business with CR Market Surveys, Inc.; a company comprised of multicultural marketing research experts with over 15 years experience specializing in community based, response rich research both locally and nationwide. www.anchorstaffing.com /////// www.crmarketsurveys.com
CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
7 The National MBEIC is a standing committee of the NMSDC. In Chicago, Joyce Johnson, President & CEO of Anchor Staffing, is Chairman of Chicago MBEIC, a standing committee of ChicagoMSDC. The purpose and mission of MBEIC is to work in conjunction with ChicagoMSDC to provide advice and input regarding the programs operating under the auspices of NMSDC and to conduct such activities that the ChicagoMBEIC adopts and furtherance of its goals to enhance minority economic development provided such actions do not impair the 501 (c) (3) tax exempt status of the NMSDC. The vision of MBEIC is to be instrumental in providing input, direction and action to create a business environment for minority businesses that fosters growth, sustainability and relevance…and creates economic growth in minority communities. Chicago’s MBEIC has 13 members. They are: Joyce Johnson – Chairman, Donna Bridgeforth, Jackie Dyess, Karen Eng, Michael Gaines, Poonam Gupta-Krishnan, Charles Harrell, Janny Leung, Pamela McElvane, Thomas McLeary, Sandeep Nain, Brian Powers and Herb Stokes.
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The Big Picture Does hearing the name, Walter T. Varney ring any bells? Probably not unless you’re a student of U.S. aviation history. But this American businessman with partner Louis Mueller are credited with founding two major airlines: United and Continental. The year was 1934.
Today, United and Continental Airlines in
2010 merged to form the world’s leading airline, and the newly formed company reaffirmed a commitment to build and grow a pool of talented, diverse suppliers. Jeffery A. Smisek, President and CEO, leads the Chicago-based airline with annual revenue over $37 billion and more than 85,000 employees worldwide. United adopted its commitment to diversity as part of its business operations plan, and this priority is communicated throughout the leadership ranks from the top down. “As we worked through the merger, our executive leadership team believed supplier diversity was essential to our success and chose to have Supplier Diversity management personnel in both Chicago and Houston, ensuring that we had resources at our two largest hubs,” said Katrina Manning, United’s Vice President Technical Procurement. “This regional strategy enables diverse suppliers to have maximum access to our diversity team and follow-on opportunities at United.”
“Supplier Diversity is a critical component of our procurement process,” explained Manning. “Our Supplier Diversity goal is to identify potential suppliers from diverse backgrounds, which in turn reflects the backgrounds and cultures of our customers and our employees.” Ruby McCleary leads the Supplier Diversity Program at United and has 15 years experience in promoting supplier diversity. “As a former woman business owner, I understand the challenges that small businesses are going through. I’ve seen the day-to-day struggles of trying to get business and handle every aspect, and of growing your business and your cash flow,” McCleary reflected. An American Express Study showed that once women have their own business, they hire more women. The same is true for minorities. Statistics support that minority business owners significantly impact their communities – usually underserved – by CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
providing wealth, jobs and hope. For instance, 65.9% of Hispanics work for firms with fewer than 500 employees (U.S. Census Current Population Survey). Small businesses (fewer than 500 employees) have accounted for about 65% of the private sector job creation (2010 Business Employment Dynamics/U.S. Department of Labor). McCleary understands the impact that small businesses contribute to the economic upturn and the country as a whole. “We coach and mentor minority business owners on how to do business with United. Providing an opportunity with United is one thing, but our main goal is to see them (W/ MBEs) succeed regardless of where they do business,” McCleary added. One example of United engaging diverse suppliers is through corporate real estate initiatives. United is consolidating its corporate headquarters and operational center at Willis Tower in downtown Chicago,
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which involves a significant amount of renovation and construction work in the facility. As a result of the move, United created a number of job opportunities for W/ MBE’s, the City of Chicago and more.
In the Technology space, United partners with MBE’s such as SHI, which provides computer software, hardware, peripherals, networking products and a broad range of IT lifecycle services. “Our relationship began in 1997 and has grown strategically over the years, said Radojevic. “SHI has been given an opportunity to compete for business not solely as a diverse organization, but as an equal partner, measured against all of United’s top-tier IT suppliers. “When we were engaged by United Supplier Diversity in 2008, our message was clear: All we want is an opportunity to participate and compete for your business, let our
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“We coach and mentor minority business owners on how to do business with United...our main goal is to see them succeed.”
Local MBE’s such as United Building Maintenance has worked with United for more than 20 years. United Building Maintenance started out providing janitorial and painting maintenance services at United’s buildings in Elk Grove Village, and over the years the company’s work with the airline has grown—it was recently awarded a large subcontract agreement with Rossi Construction, the general contractor managing the jet bridge renovation project at Chicago O’Hare International Airport. United is also engaging diverse suppliers at its Houston hub, where it is in the midst of a multi-million dollar renovation of Terminal B at Bush Intercontinental Airport. Layle McKelvey, Supplier Diversity Manager, works from Houston to support this multiphase project. “At United, supplier diversity is integrated into our sourcing processes which keeps us focused on Supplier Diversity up front,” explained Michael Radojevic, United’s Managing Director of Technology and Corporate and Professional Services. “The Supplier Diversity team plays a critical role in driving these efforts. We are always looking for qualified, diverse partners and continually search for opportunities to grow with our existing suppliers. This has led to a successful diversity supplier program at United that has visibility across the global company.
Ruby McCleary, Director of Supplier Diversity & ChicagoMSDC Board of Directors
service and value do the rest. We won’t let you down,” said Joe Negron Manager, Enterprise Sales for SHI. United has a great partnership with Chicago MSDC. They have been an active participant in CBOF for years. “We rely on the Council for certification. That is a strategic value that the Council delivers. It is critical that we are using certified diverse suppliers, ensuring the integrity of our supplier diversity results reporting process,” said McCleary. United’s diversity spend numbers are not fully merged, and the company is working to integrate the data in an entirely new platform. However, McCleary does confirm that as of third quarter 2012, United’s diversity spend has already exceeded its year-end 2012 goals. Since 2000, United has had a diversity spend of about $2.5 billion. The company launched its Tier 2 program in 2008 and since then has delivered well over $500 million through the Tier 2 program. Additionally, the Tier 2 opportunity “is growing by leaps and bounds” as they look to their business partners and “hold them accountable,” said McCleary.
CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
“At United, we have a number of diverse suppliers providing products and services in key areas of our business, from Food Services to Airport Operations to Maintenance. We are committed to supplying equal access to diverse suppliers and look forward to our continued partnership with ChicagoMSDC,” McCleary commented. By: Milana L. Walter
United Airlines Supplier Diversity Honors MBN Magazine 2012 Top 40 Companies Impacting Supplier Diversity Women’s Enterprise Magazine Supplier Diversity Hall of Fame 2011 Women’s Enterprise Magazine Supplier Diversity Best of the Best 2011 Women’s Business Enterprise National Council (WBENC) Top Corporation for WBE’s 2011 Minority Business News USA Best of the Decade 2010 for Supplier Diversity .
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THE
10
PGA
OF AMERICA
Hole In One
Throughout his stellar career, Ellison has had the audacity to expect inclusion in all aspects of business and economic development. Earnie Ellison has been the Director of The PGA Business & Community Relations which include diversity and inclusion since 2000. He came into the position armed with a plethora of experiences which included a career as an IBM and UNISYS executive, entrepreneur providing software solutions to the military and commercial businesses, and a cofounder of the Black Chamber of Commerce in Montgomery, Alabama. There were protests in 1996 regarding the lack of supplier and management inclusion in PGA of America. Rolling out from this discontent, the PGA wanted someone with a financial background to lead and design a diversity initiative. Ellison was selected to be the PGA executive to develop and lead this game-changing initiative. His initial outreach was to NMSDC, where the PGA became a member. Throughout the ups and downs of creating such an unprecedented initiative within PGA of America, he felt committed to entice the golf industry to understand the significance of doing business with minorities and the various positive returns on investment associated with it. The biggest challenge was getting the golf industry to buy into minority vendors, even though they agreed in principle. “When people thought of ‘minority’ they thought of hand-outs, poverty and that they cannot bring anything to the table,” said Ellison. He continues, “I wanted to get the question, ‘but are they qualified’ off the table. I don’t like
Earnie Ellison, Director of The PGA Business & Community Relations
that concept,” he states. Thus he created the PGA Certified Program, tailor-made certification component which asks the right questions to insure that the business applying meets the stringent criteria. The Program begins with 10 questions. The answers to those questions provide key information to determine early in the process if there is a possibility for a partnership with the PGA. Once the vetting process is complete, Ellison markets the companies to the golf industry and utilizes the PGA key assets to provide visibility for these minority and womenowned businesses. The ROI (return on investment) is usually great to use these companies. One of the elements required is that the Company must have a Board of Directors. Boards of Directors become vital resources in connecting PGA and the golf industry to additional opportunities for the benefit of all parties. “There is something about ChicagoMSDC I really like. I am very pleased with the support received from Shelia and Dave. This Council has supported us with outstanding businesses for three major championships held at Medinah Country Club.” Ellison retained National Diversity Solutions, a young, innovative minority-owned business, which puts together a great minority inclusion business case. The business case helped set CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
the tone and connected supplier inclusion to the broader goals and objectives within the golf industry’s “growth of the game”. Today the PGA brand and image when it comes to inclusion is significantly enhanced, yet there are still major milestones to reach. The spend with minority and women-owned businesses for the 39th Ryder Cup was almost 40% when compared to the target of 25%. In 2016, the PGA celebrates 100 years of existence. They are developing a plan for the golf industry collectively to spend $1B and a $1B investment via minority and womenowned businesses that hopefully will be highlighted during the centennial celebration. The type of aggressive but strategic plan will accelerate the growth of minorities and women playing the game of golf. ChicagoMSDC MBE’s such as Flying Foods have entered the golf space while Sayers 40 has begun to expand business into the golf space as a result of the 39th Ryder Cup Diverse Supplier Forum at Medinah Country Club.
www.PGA.com/diversity
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OFFICE SPACE INC
The Little Engine That Could Michelle Lechuga
Michelle Lechuga grew up in a close knit Mexican-
American family with a strong work ethic. She did not learn English until she was 5 years old. It is apparent that she took to heart the message in the classic children’s book, The Little Engine That Could. She grew up ‘thinking she could” as is the mantra throughout the book. Michelle sat down with CMBR, after a visit to the Navistar headquarters brought her eye-catching, stylist, functional furnishings to light. In her own words…
Why did you choose the office furniture business? I have been in the contract office furniture industry for over 18 years on the operations side of the business. My business partner is also from the industry where he has spent nearly 20 years in sales. Between the two of us we felt we had the complimentary skill sets required to have a chance at becoming successful and decided to take a chance out on our own. The
ChicagoMSDC organization has been very helpful in aiding our success.
How did office space, a small MBE, land the Navistar contract? Like many contract office furniture dealers in the Chicago market, Office Space had done some business with Navistar prior to their Lisle world headquarters relocation. As a result we were able to demonstrate our service capabilities and unwavering commitment to our clients’ satisfaction. Much of our initial work involved doing the little things that don’t generate profits. However, those opportunities did give us the chance to demonstrate our commitment when others before us had not. In other locations Navistar needed to match very old, discontinued furniture. In some instances hundreds of new workstations were needed to integrate with hundreds of existing stations already in place. We introduced ways to blend new, used and refurbished product to match the existing and keep costs in line. When we became aware of Navistar’s WHQ (world headquarters) relocation we knew we had a very loyal customer who was open minded and willing to listen. We had earned the reputation as a proven service provider and furniture experts. The problem was we didn’t represent any of the major furniture manufacturers capable of producing furniture for over 4000 employees in the aggressive time frame required. What appeared to be a limitation quickly became a strength. Since CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
we didn’t represent any of the capable manufacturers we didn’t have a predetermined agenda. Therefore in theory we could represent them all. Navistar loved the idea and to their credit were already considering a similar approach. Not ironically, they were concerned about the size of our organization and needed competing viewpoints so they brought in other local dealers to discuss their ideas. Ultimately Office Space was very fortunate to have been awarded the project. We were not about to disappoint Navistar for their bold and unconventional approach. Office Space and the selected manufactures never missed a deadline or expectation. By last count there were over 750 semi-trucks of furniture delivered and installed. Many consider the Navistar furniture purchase to have been one the largest in the history of Chicago and neighboring states.
Has the council, ChicagoMSDC, supported your efforts? ChicagoMSDC has been a great support. The MBE certification requirements are extensive and detailed. Throughout the submittal process the Council stayed patient while providing Office Space the professional guidance necessary. Navistar recognizes the importance of implementing business practices that reflect the market they serve and as a result promote the growth and development of the entire community. Diversity spend initiatives build a stronger community. By implementing programs that support minority businesses the ChicagoMSDC is giving back to those who may otherwise go unnoticed. CONTINUED ON PAGE 12
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Anything else you would like to share? It should be understood that the success of the Navistar WHQ relocation would have never been possible without many other vital product and service providers including but not limited to; Duke Construction Co, Jones Lang LaSalle, Partners by Design and Modular Installations. Most importantly and a very special thanks to the critical and forward thinking members of the Navistar team including Don Sharp, Bill Jerpe, Allen Gray, Mike Jastreboski and Jeff Bowen who chose a less conventional approach to buying furniture. In the end their bold approach proved to be a big winner! The next move for Office Space Inc? Are implementing growth strategies that will roll-out in early 2013 with a new website, design and marketing plan. Michelle notes that she met her new designer at CBOF 45, another MBE to MBE collaboration in action. One thing is for sure, Michelle’s “little engine” continues to be consistent in its climb up to the summit.
GLOBAL pARTNERS UPDATE “95% OF THE WORLD LIVES OUTSIDE THE U.S.”
– 60 MINUTES/CBS NEWS
Toronto, Canada Comparison between Toronto & Chicago
• Population for Chicago and Toronto is at 2.7 million. • The labor force for Toronto is 1.4 million and Chicago trails closely with 1.2 million • The unemployment rate is 11.3 percent for Chicago and Toronto is 9.2 percent. • Chicago has 92,508 businesses and Toronto has 84,863. • Many businesses have already taken advantage of the Toronto and Chicago synergies i.e. Kraft Foods, BMO Financial Group (Through its ownership of BMO Harris Bank) and Wrigley. • Principles from 1991 remain the same: to further the shared values and beliefs of each city’s citizens and to advance the common interests uniting both cities in the areas of economics, finance, trade, tourism, urban planning, culture and education. • On November 28, 2012, Courtney Betty of Miller Canfield conducted the Toronto Diversity Trade Seminar to explore the possible opportunities of MBEs doing business in the city of Toronto. Five industries were invited out: construction, energy, food and beverage, cosmetics, and film and media. CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
Diversity Business Network • The Diversity Business Network provides supplier diversity consulting services to Canadian corporations to increase profitability, develop diverse-owned business capacity through training and mentoring, and serves as the bridge between large corporations, government and NGOs and diverse-owned businesses. They do this by accessing diversity programs in Canadian corporations, developing relationships that provide strength, and providing a private business network and growth opportunities. • www.diversitybusinessnetwork.com/about-diversitybusiness-network-dbn •“Cross border business is an area of growth for minority owned businesses. Toronto, with its proximity and numerous similarities to Chicago, is a natural place to develop business relationships. Miller Canfield, with offices in Chicago and Toronto, serves as the legal bridge for minority owned companies looking to develop cross border opportunities.” – Courtney Betty
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THE SPOTLIGHT
South Africa: Port Elizabeth & Nelson Mandela Bay Seeking collaboration with MBEs • Population is 1.1 million • High concentration of motor manufacturing firms. Car production has been the economic anchor. A Ford factory opened in Port Elizabeth in November 1923. First Ford agents in South Africa Arkell and Douglas of Port Elizabeth. Two other motor manufacturing firms that set in Port Elizabeth: General Motors South Africa and Volkswagen of South Africa. Manufacturing is the main sector. • International brands that have already showed confidence in Nelson Mandela Bay: Coca-Cola Sabco, which bottles and distributes Coca-Cola products in 12 countries throughout Africa and Asia; Aspen, Africa’s largest pharmaceutical manufacturer; Aberdare Cables, a major international power cable manufacturer. • Their government has also put organizations in place to facilitate investment, trade and enterprise development that’s apart from private sector financiers and commercial banks. Nelson Mandela Bay Municipality’s Economic Development and Recreational Services promote economic growth, job creation and poverty reduction. It works closely with the province’s Eastern Cape Development Corporation. (ECDC)
CAPE TOWN Wesgro is the official investment and Trade Promotion Agency for the Western Cape, located in Cape Town, South Africa.
International Trade • Export readiness assessment, training, mentoring programs, experiential market visits outward selling missions as well as inward foreign buying missions • One-on-one foreign buyer and local producer meetings set-up • Africa to Africa trade focus • Access to international non-traditional markets (particular to Western Cape exports) • Assisting exporters with the dti Export Marketing & Investment Assistance scheme (EMIA).
“What I have to do is to strengthen the political, economic and social relations between the Midwest and South Africa; what I have to do is share some of the moments that have taken my breath away, that is what she is, South Africa, a breathtaking country and people, my home.” Consul General Vuyiswa Tulelo is the new Consul General of South Africa in Chicago. She hails from Kimberley in the Northern Cape province of South Africa. She studied at Wits University majoring in Politics and Sociology, and was elected Student Body President from 1999-2001. CG Tulelo has a rich history of involvement in the ANC Youth League (ANCYL), leading it as the Deputy Chairperson of the Northern Cape Province (1996-1998), the first woman to be elected to the position, as a Member of the National Executive Committee (2000-2001), as Deputy Secretary General (2001-2008), where she was the longest serving female, and as Secretary General (2008-2011). She joined the Department of International Relations and Cooperation (DIRCO) in November 2011 as head of the Youth and Gender Chief Directorate until she took up her responsibility as Head of Mission of the South African Consulate General in Chicago on July 21, 2012. CG Tulelo is married with 2 children, Nomawethu who is 5 and Mxolisi who is 3.
Ms. Donnadelliah Maluleke has extensive experience in trade and investment promotion and facilitation, investment analysis, market and financial feasibility study development, local economic development plan and deal structuring. Ms. Maluleke’s key responsibility as the South African Consul Economic in Chicago is to promote South African business interests in the Midwest region of the USA, which includes facilitating trade and investment activities by interacting with organized business and government agencies in the region. Ms. Maluleke has extensive experience in both the private and public sector in South Africa. She has worked for KPMG’s Advisory Services as well as for the Industrial Development Corporation (development bank) as a deal maker. In addition, she has managed an investment portfolio for the Provincial Investment Promotion Agency in Limpopo prior to her responsibility as the Economic Consul for SA ConsulateGeneral in Chicago.
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THE SUTTON FORD
ST RAT EGY P E O P L E M AT T E R
Nate Sutton started in the car business after working as an engineering specialist with IBM. That was 1986. He and his wife and business partner, Mallory, were looking for the right opportunity to buy a business. Three years later, Sutton Ford was established in October, 1989.
Sutton employs 150 “team members” between the Ford and Honda franchises. He owns 100% of the Ford franchise and 80% of the Honda franchise. His current sales are $150 million but keeps in perspective he is selling “a $30,000 widget with a low profit margin”. Having a Ford dealership instead of a GM dealership was definitely a plus during the threatened bankruptcy. Ford’s position was “that it would be bad for America if GM went under”. Thus, Ford Motors went to Washington, D.C. to support the government’s proposed bail-out of GM that saved thousands of jobs and an important component of the U.S. automotive industry.
combined with word-of-mouth and repeat customers. Dealerships under the retail part of Ford, rarely connect with Ford’s award-winning supplier diversity team, which oversees the inclusion of minorities to supply a portion of the 13,000 parts needed to make a vehicle (see insert). However, in retail there are 4,000 Ford dealerships: 89 are African-American-owned and collectively Hispanic-Latino and Asians own 90. There is a high failure rate. Owning a dealership is capital intensive thus 57% go out of business in the first five years, mostly because they are under-capitalized. One of his mentors gave him the best and hardest advice to follow, early on, “spend less than you make!” Much easier said than done, but he and Mallory have heeded that advice. Sutton’s dealerships are debt-free.
Sutton’s biggest challenge and strength are his team members. He considers himself an average person and he “hires other average people and coaches them to do an above-average job.” This is the Sutton strategy: People Matter.
According to Sutton, ChicagoMSDC MBE certification’s greatest asset is ACCESS: especially the face-to-face access afforded by the CBOF experience. Sutton has sold cars to ChicagoMSDC members such as Northern Trust.
Eighty percent of Sutton managers are not college graduates, however, they are trained to connect with people and know their product. The Sutton teams are known for delivering return business.
Healthcare is Sutton Ford’s number one initiative in giving back to the community. When Nate and Mallory established the dealership, the number one reason for wage garnishments of their customers was healthrelated bills. One of the first things, the Sutton’s did in establishing their dealership was to install a HMO for their employees.
Although traditional retail business models suggest 15-20% of total budget be dedicated to advertising and marketing, Nate spends a bit over half a million per year
The Sutton’s donate to charitable causes that include Aunt Martha’s Youth Service and Health Center, Ingalls Memorial Hospital, and the Matteson Economic Development. By all indications, the Sutton Ford strategy is solid. CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
Ford Motor Company Diversity Awards According to their website: Ford Motor Company is especially proud that our Supplier Diversity Program has been recognized by many national organizations. A few notable mentioned but not limited to are: Diversity Inc. Ranked Ford the #2 Supplier Diversity Corporation in the nation. Michigan Minority Supplier Development Council, Corporation of the Year Michigan Hispanic Chamber of Commerce National Minority Supplier Development Council, Corporation of the Year NABA Corporate Member of the Year Award Tuck School of Business at Dartmouth College Urban Wheels Corporation of the Year United States Hispanic Chambers of Commerce, Corporation of the Year
www.fordsdd.com/sdd_program/ awards.htm
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UHC Honors University of Chicago Medicine with Supplier Diversity Leadership Award
Inclusionary business practices strengthen our supply chain, just as equity and inclusion builds a strong, diverse organization to provide superior care for our patients. - James S. Williams, Jr., Manager, Business Diversity for University of Chicago Medicine & Treasurer, ChicagoMSDC Board of Directors
The University of Chicago Medicine has been awarded the 2012 Supplier Diversity Leadership Award by UHC, a prestigious nationwide alliance representing approximately 90% of the non-profit academic medical centers in the United States. The Supplier Diversity Leadership award is in recognition of its commitment to expanding the use of certified women-, minority- and veteran-owned contractors as business partners throughout its campus. UHC cited, among other factors, letters of support for the University of Chicago Medicine from diverse suppliers in the area, a clearly articulated plan for its supplier diversity program, spearheading an annual business diversity symposium since 2008 and the accolades received throughout Chicago for its Business Diversity Manager, James Williams. “UHC is proud to honor the University of Chicago Medicine for its strong supplier diversity program. We encourage our members to develop these programs to help cultivate their communities’ economic growth and foster competition and best practices,” said Irene M. Thompson, UHC President and Chief Executive Officer. One of the key projects underscoring the University of Chicago Medicine’s commitment to diversity is the new 1.2 million-square-foot hospital pavilion. Its goal is to grant 40 percent of contracts to build and run the facility to women- and minority-owned businesses. The new $700 million hospital will open to patients in February 2013.
Clockwise from top left: Mike Hopkins, Jonathan Stegner, Mike Carey, Mona Sonnenshein, James Williams, and Debra Albert.
“The University of Chicago Medicine has had a long-standing commitment to working with and developing diverse suppliers. With the new hospital, we have awarded significant contracts for construction, construction labor and even items such as new computers and scrubs to diverse suppliers,” said Jonathan Stegner, Vice President of Supply Chain and Logistics. “I am delighted with the recognition UHC has given the University of Chicago Medicine for our ongoing commitment to diversity and our recent outstanding results.” The award is based on several criteria: • Structure and strength of the organization’s supplier diversity program • New programs or techniques that facilitated the growth of diverse businesses in 2011 • Community involvement and outreach to minority-, women- and veteranowned businesses • Senior leaders’ involvement in supplier diversity development • Utilization of diversity contracts, especially from Novation, a health care supply contracting company with 65,000 members and affiliates nationwide • Use of Novation’s supplier diversity suite of solutions Even before the formal launch of its Office of Business Diversity in 2002, the University of Chicago Medicine has had a strategic focus to draw on a diverse network of firms to help it CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
deliver outstanding, compassionate care while also strengthening the economic fabric of the multicultural communities it serves. UCM also supports business diversity outside its community through leadership roles in the National Minority Supplier Development Council, Black Contractors United, the Hispanic American Construction Industry Association, the Federation of Women Contractors and other organizations. Among others who have played significant roles in this goal: Joan Archie, executive director of construction compliance; Alder Derose, Manager of Construction Compliance; Mike Carey, Director for Purchasing; and the construction team under Bill Huffman, Vice President of facilities, design and construction. UHC represents 116 academic medical centers and nearly 280 affiliated hospitals, covering about 90 percent of the nation’s non-profit academic medical centers. Fletcher Allen Health Care, University of Wisconsin Hospital and Clinics, University of Colorado Hospital, Oregon Health & Science University, and Wake Forest Baptist Health were recognized by UHC for their excellence in supply chain management. Denver Health was a top performer among participating public hospitals. The awards were presented September 13 at the 2012 UHC Annual Conference in Orlando.
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Intellectual Property holds its own value as
your unique creation, but how you handle it speaks to your company’s value. The value of intellectual property, or “IP,” is the pride of any business born of a company’s investment. Recently though, an investment banker told me that he uses one analysis model that ignores the company’s IP. He determines company value assuming competitors also have IP. The investor’s model presents the challenge to look at the actual value of your IP creation and then look
at the company’s value overall from your creation’s perspective. Intellectual Property is a critical asset to a company. Giving notice of copyright protects your unique expression of an idea, protecting publications such as an original program. Registering a Trademark protects the identity of your product or service nationally, protecting your brand name from being misrepresented. Obtaining a patent for a product prevents others from selling your product or design of product as their own, protecting your investment in the product’s invention. In each case, the law protects a company’s property, establishing damages for any other company that attempts to make, use or sell a product or service in violation of the IP. Accountants have methods to put a number value on the intangible IP asset, namely the cost, income, or market approach. The cost approach to valuation looks at how much it could cost to replace the IP. What would a company budget to recreate the copyright, to pay royalties for a trademark, or replace an invention. The income approach calculates the present value of the increase in cash flow the IP can be credited for helping to provide. The market approach looks to the marketplace for pricing on similar inventions or royalty rates. Assessing the value of the IP itself should take into account the cost of defending the IP. While Patents and Trademarks are strengthened by tests of violators, vigorous protection of your IP can be costly. On many occasions in my own business, we sent “cease and desist” letters to warn other companies about violations, and threatened suit when we had to. The reality of IP challenges is so
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great, we let some international provisional patents lapse because we did not have resources to defend them. Like other assets, intellectual property requires expensive maintenance. Yet looking beyond the mundane issues of book value and maintenance, IP can serve to anchor an analysis of a company’s value. The core question is how a company handles its own IP. How does a company distinguish its IP to targeted customers so that competitors are caught catching up? In promoting its IP, does the company create a competitive advantage through quality, cost, delivery, or flexibility? Has the company established strong relationships with customers, vendors and partners who understand the value of the IP? Through every aspect of a business, it is important to reflect on how the company enhances the value of its own IP. In the end, an investor can take the IP asset out of a valuation equation, but the IP impact remains. A company’s value is grown through its ongoing efforts to develop and promote its Intellectual Property. By: Josh Gutstein
Josh Gutstein
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The
When you look at Winnie Chan, one thing
is very apparent. She is an elegant, beautiful woman whose face is wrinkle free. How can that be? Well into her 60s, her youthful appearance could be attributed to her attitude, her healthy lifestyle and/or genetics. It all began as a gesture of love. “The Maylan regimen began because I was allergic to the products in the market, even the ones for sensitive skin,” says Winnie. At 40, Winnie began seeing the changes in her skin and was seeking skincare creams to hydrate drying skin. Her husband, Dr. Henry Chan, a noted chemist for major laboratories, created Amedico Laboratories to formulate a solution for his wife’s skincare dilemma. Dr. Chan had over 35 years of product formulation experience. He formulated Blistex, Softlips and Orajel and other nationally known products. Through his experience and knowledge, he developed a luxurious cream specially formulated for Winnie’s sensitive skin. “We value the traditions of Eastern philosophy and the efficacy of Western technology.” The Chans use a principle which they refer to as “in house”. They use a secret combination of great ingredient and technology. They do not believe in making false claims of magical results from using Maylan. They are very clear that Maylan is not for everyone but it is a maintenance product that delays the effects of the aging process (on the skin).
The product is light and is absorbed through the skin into the cell. That is why Winnie’s face is wrinkle-free. “Our products provide moisture that allows the cells to regenerate. This is what we all need, including men, as we get older. Skin cells are attached together so Botox will not work later in life,” said Winnie. Maylan Skincare is distributed through maylanskincare.com and Amazon. A one ounce jar (29g) of Maylan Silk and Honey Rejuvenating Overnight Cream is $70. Other prestige night creams such La Prairie is $475, Estee Lauder Re-Nutriv is $190, Elizabeth Arden’s Prevage is $132, Lancome High Resolution is $93 and Hydroxatone, an info-mercial veteran is $80. The Chans are looking to ChicagoMSDC for retail access as a companion to their online business. Last year Maylan was selected by ChicagoMSDC to participate in the Nielsen Consumer Goods Workshop which yielded Maylan access to consumer data. In the winter, Maylan will begin the process with Macy’s. Their dream would be to have a private label with Walgreens. Maylan has grown tremendously in the last 2 years from a word-of-mouth following. Winnie makes numerous presentations world-wide especially to groups with a focus on skin CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
Secret problems. The Chans also donate products to charity. Winnie says, “People need confidence and our product gives it to them. Our cleanser and toner are both alcohol-free because we use fruit extract. I believe the product is a blessing from the Lord for us to share with people.”
www.maylanskincare.com
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The Win-Win of Tricia Wynn Wynn’s Supplier Diversity philosophy in her own words: Supplier Diversity development is one of my passions. I want to make a difference, even if it is by helping one minority entrepreneur at a time. I take great pride in knowing that I have in some small way assisted a minority business enterprise (MBE) in making a corporate contact, developing a joint venture, and or identifying sales opportunities. I try to stress to all MBEs the importance of adding competitive value. Today’s corporations cannot afford to pay a premium for like goods and services, making it imperative that minority entrepreneurs understand the criticality of focusing on quality, service, and delivery in a most competitive marketplace. One of my goals is to attempt to level the playing field and assist MBEs in garnering the opportunity that they need to sit at the table, competitively bid, and garner major contracts. I also feel accountable to the corporations in helping them identify qualified, certified, competitive, and financially sound MBE firms from which to procure goods and services. I will always be very appreciative of the opportunity NIMSDC afforded me to work with such exemplary individuals in both the corporate and minority enterprise sectors.
Tricia Wynn, Principal of The Wynn Group,
has been working with the casino industry for the past 14 years. Through her exposure and expertise she has broken the barrier of the one particular challenge that casinos face: finding minority suppliers that are state certified. The gaming industry regulations mandate that the casino can only report state-certified MBE/WBE spends. One of the key services that Wynn provides through Northwest Indiana MSDC (NIMSDC), a part of ChicagoMSDC, is assisting MBEs in obtaining NIMSDC certification. This service allows MBE’s to more expeditiously develop relationships with the casino industry. She is and has been a tenacious facilitator of introductions between MBE’s and key casino industry procurement personnel. For example, Cristina Foods, Inc. was introduced to Majestic Star Casino through a NIMSDC-sponsored networking event and was awarded a major contract. These types of events sponsored by NIMSDC promoted many successful relationships. Wynn introduced the “Speed-Dating” workshops to CBOF several years ago. They have evolved into a sold-out-waiting-list event during annual trade fair.
“It is very rewarding to know that in
some small way, I have contributed to
the success of MBEs through networking opportunities based on relationships that I have personally developed with key casino industry representatives.”
Prior to being the NIMSDC Project Director, Tricia worked for ArcelorMittal, a Northwest Indiana steel manufacturer. Throughout her twenty-two-year career with ArcelorMittal, she held positions in both the Sales and Purchasing Departments. Her last assignment there was as Purchasing Manager, where she led a supply management team accountable for $225 Million in Operating Supplies and Services. From 1994-1998 she served as ArcelorMittal’s Supplier Diversity Program Manager. Through her efforts, a comprehensive supplier diversity program was established and MBE spend substantially increased. Tricia formed The Wynn Group, a certified woman-owned management consulting firm in 1999, after ArcelorMittal, and contracted with NIMSDC that same year.
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Tricia has earned additional recognition for her work in minority business enterprise development. In June 1998, she was named the U.S. Small Business Administration’s State of Indiana 1998 Minority Small Business Advocate of the Year and 1998 Midwest Region Minority Small Business Advocate of the Year. Tricia won the Special Recognition Award in 2003 from the Minority Business Committee and Chicago Minority Supplier Development Council. Tricia is a graduate of Purdue University with a degree in Industrial Engineering. Active in the community, she is a member of Gary Chamber of Commerce, East Chicago Chamber of Commerce, Calumet Area Literacy Council, and serves on the Board of Directors of FirstCare Pediatric Rehab and ChicagoMSDC. Tricia is also a mentor/ volunteer at St. Joseph’s Carmelite Home for Boys and Girls, an orphanage located in Northwest Indiana. She tutors math, reading, science and English at the Home. For Wynn, the development and implementation of supplier diversity are a uber win-win situation.
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THE NMSDC GROWTH INITIATIVE
IN CRE A S IN G G R O WT H A N D EX PA N D I N G O P P OR TU NI TI ES FOR MBES At 9:00 am on Wednesday, December 12, at ChicagoMSDC, Marquis Miller, Vice President of Field Operations of the National Minority Supplier Development Council (NMSDC), will present information on the NMSDC Growth Initiative, a certification process aimed at maintaining MBE status as a “Minority-Controlled Company. Mr. Miller will be joined by Bruce Richman of Reznick Group, who will speak about business valuation. This session follows a program on November 14, which presented an introduction to Private Equity. Since 1972, NMSDC has been at the forefront of minority business development. Its certification process based on 51% ownership, operation and control by minority individuals continues to be the hallmark of the corporate membership organization. The Growth Initiative was created in 1999 to support those NMSDCcertified MBEs with the potential for substantial growth and that also have opportunities to access equity capital from professional institutional investors.
Among other eligibility requirements, an NMSDCcertified MBE may be certified as a MinorityControlled Company if all the following apply: Minority Group Members retain a majority (no less than 51%) of the entity’s Voting Equity. Minority Group Members retain no less than 30% of the entity’s Economic Equity. No more than 49% of the Economic Equity of the entity is owned by persons or entities other than: (i) a Minority Group Member or (ii) a Professional Institutional Investor.
regardless of size, are eligible for this consideration. This does not have any effect on the requirements of other nonprofit organizations or government agencies. Given the complexity of the issues involved and the need for consistency in certification decisions, NMSDC employs a national, rather than regional, certification process for these purposes. NMSDC reviews all applications and reserves the right to deny certification to any entity which fails to meet the criteria or which fails to comply with the intent of the process, that is, to grant certification only to those entities which are controlled, legally and in fact, by Minority Group Members.
Minority Group Members maintain dayto-day management or control of the operations of the entity, consistent with MBE status. Minority Group Members constitute a majority of the Board of Directors or Minority Group Members appoint a majority of the Board of Directors. This designation affects only those NMDSCcertified firms that have an opportunity to accept equity capital from professional institutional investors, through the creation of a new class of non-voting stock. All NMSDC-certified MBEs,
For more information on the December 12, 2012 program featuring Marquis Miller, please contact: Joshua Gutstein
jgutstein@chicagombdacenter.com
For more information on the Growth Initiative, please visit the NMSDC website at www.nmsdc.org.* *Select Certification, then Growth Initiative for a Minority-Controlled Firm to read more about this opportunity.
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GROWING
PMI SYSTEMS Entrepreneurism can be born out of a
variety of circumstances. For some, it’s the necessity to survive some form of corporate downsizing or re-organization; for others it’s just out of a desire to change careers and for even more folks it’s just the fulfillment of a lifelong dream. Unfortunately, too many people end up launching business ventures with their hearts and not their heads. This too often results in entrepreneurs who don’t have a well thought out vision or firm business plan in place. It can be a recipe for disaster when you don’t have adequate startup capital or legal services, or even a website on the internet. But for some, the idea of entrepreneurism is more than just saying, “Hey, I can do that too.” It also comes as a result of years and years of careful planning, saving, and establishing the resources needed to heighten the probability of success. One such entrepreneur is Dwayne Barlow, CEO of Batavia, Illinois based PMI Systems, Inc. Barlow has served as CEO of PMI Systems, Inc. (formerly known as Gaffney’s PMI) since February 2010. In this role, Barlow oversees, manages and operates an electrical contracting firm whose services include directional boring, overhead, underground, traffic signal, lighting and electric rail installations. But while he may be a relatively new business owner, the transition he made
from being an employee to being the boss was actually seven years in the making. Prior to acquiring PMI Systems, Barlow was a 26-year electric utility veteran of Commonwealth Edison (an Exelon Company) based in Chicago, Illinois. During his career he spent eleven years as an overhead electrician and six years as a supervisor. In his last role at ComEd Barlow became the Executive Assistant to the Senior Vice President of Operations, George Williams. When the two began working together, little did they know that they were establishing the foundation for what would become one of the fastest growing African American-owned electrical contracting companies in the Midwest. The first step toward bringing Barlow’s entrepreneurial vision to life came while attending the 2009 Chicago Business Opportunity Fair (CBOF). It was there that he met up with Dave Thomas of Chicago MSDC’s MBDA Business Center. Barlow, Williams and Thomas had all been members of the Chicago Chapter of the American Association of Blacks in Energy (AABE), a national affinity group that focuses on the growth and development of minorities working in the energy industry. Thomas told Barlow about the benefits of
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certification and introduced him to council staffers who assisted him through the certification process. The next and most important step of Barlow’s plan came when he sought the support of his former ComEd boss, George Williams. “I couldn’t think of a better person to go into this business with than my mentor,” said Barlow. George was always an advocate for minority business while at ComEd, so who better to partner in this business with than his own protégé? Williams, a 27-year veteran of the electric utility industry, had left ComEd in 2009 and
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was the Chief Operating Officer (COO) of El Passo Electric when he received the call from Barlow. “I never had an interest in being an entrepreneur until Dwayne approached me about the opportunity,” said Williams, who is a Partner with PMI Systems. The rest of the PMI leadership team includes Chief Financial Officer (CFO) Steven H. Spoerl and Director, Ben Garrett. Since the start of PMI Systems under Barlow and Williams, the company has seen amazing growth in earnings as well as in jobs and assets. In 2010, PMI Systems earned $4.9MM with 18 employees and 50 pieces of equipment (trucks, cherry pickers, and trenching equipment). In 2012, the company is projected to earn more than $12MM with 65 employees and 100 pieces of equipment. The company’s focus is the commercial, industrial and municipal sectors. In January of 2012, Williams and Barlow launched a spin off business from PMI
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Systems called PMI Energy Solutions, LLC. This company, like PMI Systems, is also an outdoor electrical contractor but is dedicated to the utility sector. Williams is the CEO of the new company (and its primary stakeholder) which takes full advantage of the relationships and knowledge base that he brings from his days at ComEd. Together, PMI Systems and PMI Energy Solutions, LLC client base include such clients as Chicago Transportation Authority (CTA), the state of Illinois, ComEd, PECO Energy, Ameren, Intren, MJ Electric, Meade Electric, etc…
Dave Thomas
The Chicago MSDC has been behind Williams and Barlow every step of the way and will continue to do so. “The Chicago MSDC has been tremendous for us,” said Barlow. “Everything from CBOF to help with certification and all the networking events have been helpful to us, especially, Dave (Thomas) and Gwen Jones at the MBDA Business Center.” Barlow was also one of a select group of MBEs who participated in NMSDC’s Executive Management Program through the Kellogg School of Management at Northwestern University. “This is a very capital intensive business for us, so being able to attend such a prestigious program under the sponsorship of a company like Wells Fargo meant a great deal to us,” Barlow said. “Chicago MSDC is always a first-rate organization and opens many doors for companies like ours,” said Williams. “We’re looking forward to continuing to grow with their support.” By: Dave Thomas
EVENT UPDATES WHat can we expect differentLY this year for CBOF46?
“Back to Basics: Regroup, Refocus, Renew” is the theme. We are going green by using recycled materials for conference bags, name badges, signs and anything on paper. We have a new flow for the floor plan. There will also be the opportunity for business owners to pre-arrange one-onone meetings with potential clients on the floor during the CBOF 46 Trade Fair.
What successful events can you expand on?
ChicagoMSDC will follow-up to match diverse Toronto businesseswith MBE’s here in Chicago for collaboration. Plans are to organize a Toronto Trade Mission in 2013.
Advertise in CMBR
For rates, contact cjordan@chicagomsdc.org or (312) 755.2555 Cynthia Jordan Director of Events
So stay tuned all you MBE’s!
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ChicagoMSDC
PHOTO GALLERY
On Purpose MBE 2 MBE TRADE FAIR
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ChicagoMSDC
Business, Golf & Scholarships
At the 39th Ryder Cup, from left to right:: Stephen Vasanth, Milana Walter (CMBR), Zeke Flores (Flying Food), Cynthia Jordan (ChicagoMSDC), Tracey Wallace (Anchor Staffing, Inc.), Michele Waszak (Bridgeforth Wolf), Earnie Ellison (PGA of America), Shelia Hill Morgan (ChicagoMSDC), Herb Stokes (Affluence Group), Jackie Dyess (Inter-City Supply), Thomas McLeary (Endow), John Hill (CompanyB), Dave Thomas (MBDA Business Center-Chicago), Victor Powell (Powell Photography), & Jim Osborne (National Material, LP)
CHICAGO MINORITY BUSINESS REPORT • DECEMBER2012
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