2. ASBDC Accreditation Committee Training September 15, 2009

3. Learning objectives Develop understanding that the quality principles of accreditation are not an event but instead are practiced in daily operations of an SBDC Develop understanding that the quality principles of accreditation are not an event but instead are practiced in daily operations of an SBDC To provide basic information on the accreditation process To provide basic information on the accreditation process Developing an SBDC program that strives for continuous improvementDeveloping an SBDC program that strives for continuous improvement

4. ASBDC Accreditation Why do SBDCs spend all this time going through the accreditation process?

5. First must understand our history Once up on a time a long-long time ago an SBA Administrator Aggressively walked the halls of congress to oppose SBDCs intent to redirect funds to other SBA programs by the elimination of the SBDC programintent to redirect funds to other SBA programs by the elimination of the SBDC program Argument: Argument: There are some good SBDCs butThere are some good SBDCs but There are also some bad SBDCs andThere are also some bad SBDCs and SBA can not fixSBA can not fix Therefore congress needs to kill the programTherefore congress needs to kill the program

6. How did the SBDC program survive these attacks? Early SBDC leaders were: Early SBDC leaders were: entrepreneurial andentrepreneurial and good at educating Congress of SBDC’s benefits.good at educating Congress of SBDC’s benefits. Today SBA is a: Today SBA is a: good supporter andgood supporter and understands benefit to SBAunderstands benefit to SBA

7. 1994 Congress passed law for oversight Designed to ensure: all SBDCs are well managed and deliver quality service. That law requires SBA to conduct: Financial examinationsFinancial examinations OSBDC to develop capability to examine SBDC OSBDC to develop capability to examine SBDC Law requires every other year Law requires every other year Programmatic reviewsProgrammatic reviews SBA responsible for an accreditation program to ensure SBDCs programming quality. SBA responsible for an accreditation program to ensure SBDCs programming quality. SBA under contract delegated to the ASBDC SBA under contract delegated to the ASBDC Law requires every fourth year Law requires every fourth year

8. Why Do SBDCs spend all this time going through the accreditation process? Today, accreditation’s focus is on strengthening SBDC management and results by a focus on: Responsiveness to clients & customers needsResponsiveness to clients & customers needs Responsiveness to stakeholders needsResponsiveness to stakeholders needs Responsiveness to host & staff needsResponsiveness to host & staff needs Responsiveness to organization’s prioritiesResponsiveness to organization’s priorities Management of innovationManagement of innovation Performance-based outcomesPerformance-based outcomes

9. Accreditation Committee Goals Why Do SBDCs spend all this time going through the accreditation process? Drive SBDC improvement andDrive SBDC improvement and Strive for world-class managementStrive for world-class management Address barriers preventing world-class management statusAddress barriers preventing world-class management status

10. Why Do SBDCs spend all this time going through the accreditation process? Promote High quality programs at all 63 SBDCs Promote High quality programs at all 63 SBDCs All SBDCs are tied together through the population formula All SBDCs are tied together through the population formula Aggregate success is the key to increased funding Aggregate success is the key to increased funding Increased funding is linked to the aggregate success of all SBDC programs Increased funding is linked to the aggregate success of all SBDC programs Enables SBDCs to identify opportunities and to improve performance. Enables SBDCs to identify opportunities and to improve performance. Reduces stakeholder intervention Reduces stakeholder intervention Helps SBDC’s address structural or political risk Helps SBDC’s address structural or political risk Sets SBDCs apart from other providers Sets SBDCs apart from other providers

11. Accreditation drives a set of values Visionary leadership Visionary leadership Customer driven excellence Customer driven excellence Organizational and personal learning Organizational and personal learning Valuing employees and partners Valuing employees and partners Agility Agility Focus on the future Focus on the future Managing for innovation Managing for innovation Management by fact Management by fact Focus on results and creating value Focus on results and creating value Systems perspective Systems perspective

12. The Basis of Accreditation

13. Baldrige selected as the basis Baldrige is a set of criteria (standards) that are well accepted as an effective approach to achieving world- class organizational performance.

14. Why Baldrige? Focuses on key issues that make or break organizational performance Focuses on key issues that make or break organizational performance Encourages people to think ahead Encourages people to think ahead Turns data into information through analysis Turns data into information through analysis

15. Accreditation Is a journey Is a journey Not a to-do listNot a to-do list Management system Management system Not a compliance systemNot a compliance system

16. High Performance Management Accreditation Customer and Stakeholder

17. Customer Groups and Stakeholders Objectives: Identify and segment customers, markets and key stakeholdersIdentify and segment customers, markets and key stakeholders Determine requirements, expectations and preferences for eachDetermine requirements, expectations and preferences for each

18. High Performance Management Accreditation Customer and Stakeholder Vision

19. Vision Set direction Set direction Address current and future opportunities Address current and future opportunities

20. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning

21. Objective: Implement a well-defined method to establish long-term strategy and short-term action plans to achieve that strategy. Aligns vision with daily actionAligns vision with daily action Fact based planningFact based planning Benefit:Benefit: Defines strategic objectives, Defines strategic objectives, Creates timelines and Creates timelines and Identifies the most important goals Identifies the most important goals

22. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System

23. Objective: The SBDC leadership system: Creates an environment to guide and sustainCreates an environment to guide and sustain Communicates with and encouragesCommunicates with and encourages high performance, high performance, organizational values and organizational values and ethical behavior. ethical behavior.

24. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction

25. Drivers of Customer Satisfaction Objective: build relationships to acquire customers and key stakeholders build relationships to acquire customers and key stakeholders Identify the drivers of value for customer satisfactionIdentify the drivers of value for customer satisfaction Understand the emotional needs important to customer satisfactionUnderstand the emotional needs important to customer satisfaction

26. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and services

27. Product and Service Identify key product/service (s)Identify key product/service (s) How is it linked to strategic plan?How is it linked to strategic plan? Key expectationsKey expectations Of clients,Of clients, of stakeholders, andof stakeholders, and of the organizationof the organization MeasurementMeasurement How would you know if this product/service met expectations?How would you know if this product/service met expectations?

28. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and services People and Skills

29. Objective: Get the right people, with right skill in the right jobs to do the work defined in the strategic plan. Get the right people, with right skill in the right jobs to do the work defined in the strategic plan. Create a work climate conducive to: Create a work climate conducive to: innovationinnovation performance excellenceperformance excellence personal learning and motivationpersonal learning and motivation organization learning and growthorganization learning and growth

30. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and servicesPeople and Skills Metric: How do we know

31. How do you know if your strategy is creating value? Objective: Measure activities and results most important to achieving key goals and strategies. Measure must permit understanding of: Measure must permit understanding of: Overall organizational performance andOverall organizational performance and Performance in daily operations.Performance in daily operations.

32. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and servicesPeople and Skills Metric: How do we know Results and analysis

33. Results Objectives: Objectives: Captures metrics and presents activity and results for analysis of:Captures metrics and presents activity and results for analysis of: work performance and work performance and outcomes outcomes Drives reinforcement of existing strategy or signals a need for modification or change.Drives reinforcement of existing strategy or signals a need for modification or change.

34. Accreditation How to think through as a system

35. Definition of Terms ApproachApproach DeploymentDeployment SystematicSystematic LearningLearning ResultsResults AlignmentAlignment

36. Definition of Terms KeyKey Leadership systemLeadership system MarketsMarkets Customer GroupCustomer Group StakeholderStakeholder For additional information, please go to: For additional information, please go to: http://www.baldrige21.com/Baldrige% 20Glossary%20HD.html http://www.baldrige21.com/Baldrige% 20Glossary%20HD.html

37. What is the real value of the Self Study Objective Objective Self study is a management manualSelf study is a management manual Self check on whether you are paying attention to what is importantSelf check on whether you are paying attention to what is important Help build understanding of where your SBDC is in terms of strengths and weaknessesHelp build understanding of where your SBDC is in terms of strengths and weaknesses Identifies the key steps to move to the next levelIdentifies the key steps to move to the next level Helps identify key themesHelps identify key themes Use as a training tool for new and existing staffUse as a training tool for new and existing staff

38. Well Managed SBDCs Have clear understanding of: The meaning of valueThe meaning of value how customer & stakeholder value is created how customer & stakeholder value is created The drivers of valueThe drivers of value at organizational level at organizational level at individual level at individual level

39. Accreditation Standards Category 3.1 Customer and Stakeholder Focus

40. High Performance Management Accreditation Customer and Stakeholder Vision

41. 3.1 Knowledge of Customers and Stakeholders Approach Approach How are customer groups and market segments determined and prioritized?How are customer groups and market segments determined and prioritized? How do you know you have selected the most appropriate markets?How do you know you have selected the most appropriate markets? What information should you be collecting and analyzing to understand needs and expectations of existing and potential customers and stakeholders?What information should you be collecting and analyzing to understand needs and expectations of existing and potential customers and stakeholders? How do you go about routinely collecting and analyzing information to identify the drivers of value to the customer and stakeholder?How do you go about routinely collecting and analyzing information to identify the drivers of value to the customer and stakeholder?

42. 3.1 Knowledge of Customers and Stakeholders Deployment: Deployment: Provide evidence to what extent the approaches are implemented.Provide evidence to what extent the approaches are implemented. What are the markets, customer groups and stakeholders selected? What are the markets, customer groups and stakeholders selected? Why did you select these markets, customer groups and stakeholders? Why did you select these markets, customer groups and stakeholders? What led you to that conclusion? What led you to that conclusion? What are the drivers of value? What are the drivers of value?

43. Example Assumption Assumption SBDC wants to maximize economic outcomesSBDC wants to maximize economic outcomes Leading indicator identified as companies needing loans and equityLeading indicator identified as companies needing loans and equity SBDC looked at market and identified customer groups most likely to need and access capitalSBDC looked at market and identified customer groups most likely to need and access capital Identified the key success factors for each customer groupIdentified the key success factors for each customer group

44. Example Steps taken Steps taken Used data bases to identify key lenders and type of business loans in their portfolioUsed data bases to identify key lenders and type of business loans in their portfolio Used SBA guaranteed loan data to identify attributes of companies procuring new capitalUsed SBA guaranteed loan data to identify attributes of companies procuring new capital Personal interviews with key lenders identified to understand what types of assistance is needed by customers in order to access capitalPersonal interviews with key lenders identified to understand what types of assistance is needed by customers in order to access capital Interviews with recent SBA loan applicants to identify the key success factors for each customer groupInterviews with recent SBA loan applicants to identify the key success factors for each customer group What were the critical factors needed to be successful in the loan process? What were the critical factors needed to be successful in the loan process? What is the most significant barrier to success your company is facing? What is the most significant barrier to success your company is facing?

45. What did we find Found 10 lenders responsible for 80% of business loansFound 10 lenders responsible for 80% of business loans Total business loans in the market were $1.0 billion dollars.Total business loans in the market were $1.0 billion dollars. Market made of as follows:Market made of as follows: Micro loans less than 25K total $50 million dollars Micro loans less than 25K total $50 million dollars Loan success- credit worthyLoan success- credit worthy Business key- ability to sellBusiness key- ability to sell Small loans>25-100K total $150 million dollars Small loans>25-100K total $150 million dollars Midsized loans> 100-1,000K total $300 million dollars Midsized loans> 100-1,000K total $300 million dollars Large loans> 1-5 Million total $350 million dollars Large loans> 1-5 Million total $350 million dollars Mega loans> over 5 million total $150 million dollars Mega loans> over 5 million total $150 million dollars

46. What did we find Interviews with recent SBA loan applicants to identify the key success factors for each customer groupInterviews with recent SBA loan applicants to identify the key success factors for each customer group Used SBA guaranteed loan data to identify attributes of companies procuring new capitalUsed SBA guaranteed loan data to identify attributes of companies procuring new capital Personal interviews with key lenders identified to understand what types of assistance is needed by customers in order to access capitalPersonal interviews with key lenders identified to understand what types of assistance is needed by customers in order to access capital What were the critical factors needed to be successful in the loan process? What were the critical factors needed to be successful in the loan process? What is the most significant barrier to success your company is facing? What is the most significant barrier to success your company is facing?

47. What did we find Steps taken Steps taken Market made of as follows:Market made of as follows: Micro loans less than 25K total $50 million dollars Micro loans less than 25K total $50 million dollars Loan success- credit worthyLoan success- credit worthy Business key- ability to sell productBusiness key- ability to sell product Small loans>25-100K total $150 million dollars Small loans>25-100K total $150 million dollars Loan success- Cash flowLoan success- Cash flow Business key- Knowing Competitive advantageBusiness key- Knowing Competitive advantage Midsized loans> 100-1,000K total $300 million dollars Midsized loans> 100-1,000K total $300 million dollars Loan success- confidence/track record of managementLoan success- confidence/track record of management Business key- Knowing Competitive advantageBusiness key- Knowing Competitive advantage

48. What did we find Large loans> 1-5 Million total $350 million dollars Large loans> 1-5 Million total $350 million dollars Loan success-Loan success- Historic financial performance Historic financial performance confidence/track record of management confidence/track record of management Business key-Business key- Knowing Competitive advantage Knowing Competitive advantage Mega loans over 5 million total $150 million dollars Mega loans over 5 million total $150 million dollars Loan success-Loan success- Historic financial performance Historic financial performance confidence/track record of management confidence/track record of management Business key-Business key- Knowing Competitive advantage Knowing Competitive advantage

49. What do we do now? Now must reconcile with: Now must reconcile with: SBDC visionSBDC vision Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation. Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation. Key Stakeholders Success FactorsKey Stakeholders Success Factors Stakeholder contributing 25% or more to total budgetStakeholder contributing 25% or more to total budget Federal 35% Federal 35% Long-term engagements, business starts and capital formation with a special focus on target groups,Long-term engagements, business starts and capital formation with a special focus on target groups, State 30% State 30% Jobs, sales increases & capital formation through attraction, retention and entrepreneurshipJobs, sales increases & capital formation through attraction, retention and entrepreneurship University 35% University 35% Outreach, visibility, access business communityOutreach, visibility, access business community Help with community outreach by assisting in housing developmentHelp with community outreach by assisting in housing development

50. Accreditation Category 2.0 Strategic Planning

51. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning

52. Our objective is to: Develop a long-term strategy that drives value creation for: Customers, stakeholders andCustomers, stakeholders and The SBDC at both the:The SBDC at both the: 1. Organizational level and 2. Individual level

53. What is “Value Creation?”  Delivering products and services that fulfill key customer needs  Incorporating expectations of key financial stakeholders into long term strategy  Making SBDC staff integral to strategy and providing a learning environment

54. Next Steps Making Everyone Happy SBDC leadership must: SBDC leadership must: 1. Insure that the organization has a clear understanding of how key strategic decisions are made. 2. Include SBDC leadership and staff and key stakeholders in the process. 3. Incorporate research on customers and stakeholders as part of the process.

55. Next Steps Making Everyone Happy 4. Reconcile research data and identify strategies producing most value to SBDC, customers, and stakeholders. 5. Assess SBDC capacity to carry out strategy based on strengths and weaknesses of SBDC 6. SBDC chooses one or more key strategies as foundation for long term business activities

56. Category 2.1 Strategy Development Process A systematic process that Evaluates customer and stakeholder needsEvaluates customer and stakeholder needs Evaluates factually the internal strengths and weaknessesEvaluates factually the internal strengths and weaknesses Identify what we do well and what needs improvement to execute strategies Identify what we do well and what needs improvement to execute strategies Assess capacity of SBDC to execute strategies Assess capacity of SBDC to execute strategies Do we have the internal resources to accomplish strategies? Do we have the internal resources to accomplish strategies?

57. Category 2.1 Strategy Development Process A systematic process that Establishes priorities, goals, strategies, and action plansEstablishes priorities, goals, strategies, and action plans At each level of the SBDC At each level of the SBDC Employees have clear understanding Employees have clear understanding of how their daily work contributes to priorities, goals, strategies and plansof how their daily work contributes to priorities, goals, strategies and plans

58. What do we do now? Now must reconcile with: Now must reconcile with: SBDC visionSBDC vision Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation. Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation. Key Stakeholders Success FactorsKey Stakeholders Success Factors Federal Federal Long-term engagements, business starts and capital formation with a special focus on target groups,Long-term engagements, business starts and capital formation with a special focus on target groups, State State Jobs, sales increases & capital formation through attraction, retention and entrepreneurshipJobs, sales increases & capital formation through attraction, retention and entrepreneurship University University Outreach, visibility, access business communityOutreach, visibility, access business community Help with community outreach by assisting in housing developmentHelp with community outreach by assisting in housing development

59. Do you see any conflicts?  SBDC Vision  SBA  University  State

60. What did we find? Market made of as follows:Market made of as follows: Micro loans>less than 25K total $50 million dollars Micro loans>less than 25K total $50 million dollars Loan success- credit worthyLoan success- credit worthy Business key- ability to sell productBusiness key- ability to sell product Small loans>25-100K total $150 million dollars Small loans>25-100K total $150 million dollars Loan success- Cash flowLoan success- Cash flow Business key- Knowing Competitive advantageBusiness key- Knowing Competitive advantage Midsized loans> 100-1,000K total $300 million dollars Midsized loans> 100-1,000K total $300 million dollars Loan success- confidence/track record of managementLoan success- confidence/track record of management Loan packaging Loan packaging Business key- Knowing and using Competitive advantageBusiness key- Knowing and using Competitive advantage

61. What did we find? Market made of as follows:Market made of as follows: Large loans> 1-5 Million total $350 million dollars Large loans> 1-5 Million total $350 million dollars Loan success-Loan success- Historic financial performance Historic financial performance confidence/track record of management confidence/track record of management Business key-Business key- Knowing and using Competitive advantage Knowing and using Competitive advantage Mega loans> over 5 million total $150 million dollars Mega loans> over 5 million total $150 million dollars Loan success-Loan success- Historic financial performance Historic financial performance confidence/track record of management confidence/track record of management Business key-Business key- Knowing and using Competitive advantage Knowing and using Competitive advantage

62. Lets develop our strategy Opportunities Opportunities Micro lendingMicro lending Credit counseling Credit counseling Sales training and education Sales training and education Small loans cash flow counseling & trainingSmall loans cash flow counseling & training Management counseling and training on competitive advantageManagement counseling and training on competitive advantage Training and Loan counseling for companies accessing loans over 100 thousandTraining and Loan counseling for companies accessing loans over 100 thousand Training and counseling on financial presentations for large companiesTraining and counseling on financial presentations for large companies

63. What is best opportunity for value creation for our stakeholders? Micro Lending- is it a good match? Micro Lending- is it a good match? SBA specialty programsSBA specialty programs State- not likelyState- not likely University- not likelyUniversity- not likely Vision of SBDC- not likelyVision of SBDC- not likely Small loans- cash flow counseling and training Small loans- cash flow counseling and training SBA-Likely to be of interestSBA-Likely to be of interest State-not likelyState-not likely University- limited value-not their marketUniversity- limited value-not their market Vision-limited valueVision-limited value

64. What is best opportunity for value creation for our stakeholders? Training and counseling on using competitive advantage Training and counseling on using competitive advantage SBA – somewhat alignedSBA – somewhat aligned State- somewhat alignedState- somewhat aligned University- somewhat alignedUniversity- somewhat aligned Vision of SBDC- somewhat alignedVision of SBDC- somewhat aligned Financial presentation for large companies Financial presentation for large companies SBA – ProhibitedSBA – Prohibited State- SupportiveState- Supportive University- Consulting, students, developmentUniversity- Consulting, students, development Vision of SBDC- Could align however internal capability and SBA regulations an issueVision of SBDC- Could align however internal capability and SBA regulations an issue

65. What is best opportunity for value creation for our stakeholders? Loan counseling and training for deals over $100,000 Loan counseling and training for deals over $100,000 SBA – good matchSBA – good match State- good matchState- good match University- good matchUniversity- good match Vision of SBDC- good matchVision of SBDC- good match

66. Self Study Practice Tip Read the approach, deployment, and what the team looks for in section 2.1 of the Self Study Guide. Read the approach, deployment, and what the team looks for in section 2.1 of the Self Study Guide. Now look back at the preceding two slides 7 & 8. Now look back at the preceding two slides 7 & 8. Describe how the key strategies and actions will be clearly and regularly communicated throughout the organization to all personnel. Describe how the key strategies and actions will be clearly and regularly communicated throughout the organization to all personnel.

67. Category 2.2 Strategy Deployment Converts strategic objectives to action. Converts strategic objectives to action. 1. Does each key strategy have: a. Action plan for each level of SBDC. b. Timelines reflecting anticipated completion dates. c. Assigned responsibility for each key action. d. Measurements which indicate success, failure, or need for action.

68. Category 2.2 Strategy Deployment Each key strategy and action plan should be well understood at each level of the organization such that: Daily activities are supportive and in alignment with strategy. Daily activities are supportive and in alignment with strategy. There is individual and organizational commitment and understanding from persons at all levels of the SBDC on how work impacts strategy. There is individual and organizational commitment and understanding from persons at all levels of the SBDC on how work impacts strategy. Progress is measured, monitored, and adjusted as necessary. Progress is measured, monitored, and adjusted as necessary.

69. Category 2.2 Strategy Deployment Plan defines desired changes in products and services. Plan defines desired changes in products and services. Plan defines key performance measures. Plan defines key performance measures.

70. Self Study Practice Tip Read the approach, deployment, and what the team looks for in section 2.2 of the Self Study. Read the approach, deployment, and what the team looks for in section 2.2 of the Self Study. Now look back at the preceding two slides. Now look back at the preceding two slides. Describe how you put the plans into action, how you communicate roles and responsibilities to all personnel, and how you regularly assess individual and organization progress and effect change when necessary. Describe how you put the plans into action, how you communicate roles and responsibilities to all personnel, and how you regularly assess individual and organization progress and effect change when necessary.

71. Self Study Practice Tip Translating strategies into actions is a fluid process. Translating strategies into actions is a fluid process. Today’s environment requires that organizations be agile and flexible. Today’s environment requires that organizations be agile and flexible. Decision making and deployment are not burdened with a rigid system. Decision making and deployment are not burdened with a rigid system. Focus on what works best to achieve results and respond to a rapidly changing business atmosphere. Focus on what works best to achieve results and respond to a rapidly changing business atmosphere. Inability to describe your decision making and deployment processes likely means they are not well understood or systematic. Inability to describe your decision making and deployment processes likely means they are not well understood or systematic.

72. Accreditation CatEgory1.0 Leadership and Organizational Issues

73. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System

74. Category 1.1 Leadership System Objective Create an environment where all SBDC leaders and managers routinely guide, sustain and govern the SBDC through a focus on: Create an environment where all SBDC leaders and managers routinely guide, sustain and govern the SBDC through a focus on: Organization values and vision that create sustainabilityOrganization values and vision that create sustainability Ethical behaviorEthical behavior Performance expectationsPerformance expectations

75. Leadership System Two Purposes: 1. Sustaining Your SBDC Set vision, direction and address threats and opportunitiesSet vision, direction and address threats and opportunities 2.Governing of Your SBDC Establish clear communication and performance expectationsEstablish clear communication and performance expectations Ensure systematic learningEnsure systematic learning Provide systematic review of performanceProvide systematic review of performance Analyze feedback used to develop actionsAnalyze feedback used to develop actions Meet compliance requirementsMeet compliance requirements

76. What Does Vision Mean? Vision should set the context for strategic objectives and action plans Vision should set the context for strategic objectives and action plans Vision is: Vision is: the central theme and purpose of what is done in daily business activity to sustain SBDC.the central theme and purpose of what is done in daily business activity to sustain SBDC. the focal point for establishing direction and deciding which opportunities are suitable and compatible with your key business activitythe focal point for establishing direction and deciding which opportunities are suitable and compatible with your key business activity

77. Example Any one willing to share your SBDC’s vision?

78. Building SBDC Sustainability Key to sustainability is: Key to sustainability is: Reconciling SBDC vision, stakeholder requests and opportunitiesReconciling SBDC vision, stakeholder requests and opportunities Establish clear SBDC vision Establish clear SBDC vision Link vision to best opportunities for the SBDC Link vision to best opportunities for the SBDC Align to Key Stakeholders Success Factors Align to Key Stakeholders Success Factors

79. Example of reconciling vision, stakeholder requests and opportunities Establish clear SBDC visionEstablish clear SBDC vision Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation. Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation. Link vision to best opportunities for the SBDCLink vision to best opportunities for the SBDC Align to Key Stakeholders Success FactorsAlign to Key Stakeholders Success Factors For example: An SBDC might use as a guide stakeholders contributing 25% or more to total budgetFor example: An SBDC might use as a guide stakeholders contributing 25% or more to total budget To illustrate this point let’s look at our exampleTo illustrate this point let’s look at our example Federal 35% Federal 35% Long-term engagements, business starts and capital formation with a special focus on target groups,Long-term engagements, business starts and capital formation with a special focus on target groups, State 30% State 30% Jobs, sales increases & capital formation through attraction, retention and entrepreneurshipJobs, sales increases & capital formation through attraction, retention and entrepreneurship University 35% University 35% Outreach, visibility, access business communityOutreach, visibility, access business community Help with community outreach by assisting in housing developmentHelp with community outreach by assisting in housing development

80. Sustainable SBDCs will have a: Bias for actions directed at creating a customer focused, sustainable high performing SBDC Bias for actions directed at creating a customer focused, sustainable high performing SBDC Clear direction should be establishedClear direction should be established Clear understanding of value creationClear understanding of value creation Clear communication and understanding of SBDC direction evident at all pointsClear communication and understanding of SBDC direction evident at all points Balance value between stakeholdersBalance value between stakeholders Strong future orientation Strong future orientation Commitment to improvement and innovation Commitment to improvement and innovation Involves environment for Involves environment for empowerment,empowerment, agility andagility and learninglearning

81. SBDC Governance A well managed SBDC will seek results: Clear and Timely Communication Clear and Timely Communication To all parts of the SBDC, including stakeholdersTo all parts of the SBDC, including stakeholders Multiple channels communicating both waysMultiple channels communicating both ways Systematic Learning Systematic Learning Create a culture of innovation and improvementCreate a culture of innovation and improvement Replication of lessons learned to all appropriate pointsReplication of lessons learned to all appropriate points Review of Performance Review of Performance Analysis and drill down of key SBDC measuresAnalysis and drill down of key SBDC measures Establishment of priorities needed for improvementEstablishment of priorities needed for improvement Analysis of feedback Analysis of feedback From customers, stakeholders and employeesFrom customers, stakeholders and employees Establishment of priorities needed for improvementEstablishment of priorities needed for improvement

82. SBDC Governance A well managed SBDC will avoid trouble by: Supporting common interest of SBDCs Supporting common interest of SBDCs Establishing a system for setting and communicating performance expectations Establishing a system for setting and communicating performance expectations Demonstrating control of budget, contracts and operations of the SBDC Demonstrating control of budget, contracts and operations of the SBDC Creating structures and systems that ensure compliance with federal laws, regulations and program requirements. Creating structures and systems that ensure compliance with federal laws, regulations and program requirements.

83. Leadership System Key is to both sustain and govern SBDC; translated into daily actions: 1. Sustaining Your SBDC Set vision, direction and address threats and opportunitiesSet vision, direction and address threats and opportunities 2.Governing of Your SBDC Establish clear communication and performance expectationsEstablish clear communication and performance expectations Ensure systematic learningEnsure systematic learning Provide systematic review of performanceProvide systematic review of performance Analyze feedback used to develop actionsAnalyze feedback used to develop actions Meet compliance requirementsMeet compliance requirements

84. Accreditation Category 3.2 & 3.3 Customer and Stakeholder Focus Issues

85. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction

86. Well Managed SBDCs Have clear understanding of: the meaning of value and the drivers of value at organizational level at individual level

87. What is Value to Stakeholders? Why your stakeholders fund you Why your stakeholders fund you What they expect from you What are the drivers of value? The important things that you do that lead to that value

88. Importance of Understanding Value If you know what is important to those who make funding decisions If you know what is important to those who make funding decisions You can work toward providing it.You can work toward providing it. Otherwise you may be working really hard and not delivering what they care about Otherwise you may be working really hard and not delivering what they care about And if you do this long enough… And if you do this long enough…

89. What happens if you don’t provide the value that your stakeholders expect? They stop funding you!

90. 3.2 Stakeholder Satisfaction and Relationship Enhancement Objective: build relationships to acquire customers and key stakeholders build relationships to acquire customers and key stakeholders To do That we need to: Understand the key things they want from us

91. Stakeholder Relationships If we know what is important to them If we know what is important to them What they valueWhat they value We then have the basis for effective communicationsWe then have the basis for effective communications We can inform stakeholders about all the wonderful things we do that they valueWe can inform stakeholders about all the wonderful things we do that they value Where does the information on value come fromWhere does the information on value come from Our research in section 3.1! Our research in section 3.1!

92. To build relationships to acquire customers and key stakeholders Manage satisfaction, feedback and complaints. Manage satisfaction, feedback and complaints. Is it important that you know if they are satisfied?Is it important that you know if they are satisfied? Would you like to be able to deal with any issues or complaints right away?Would you like to be able to deal with any issues or complaints right away? How will you know?How will you know?

93. Self-Study Practice What are ways to build and nurture relationships with key stakeholders. What are ways to build and nurture relationships with key stakeholders. Understand the value that we provide to themUnderstand the value that we provide to them Deliver itDeliver it Make sure they know we are delivering this valueMake sure they know we are delivering this value Get feedback on how they feel we are doingGet feedback on how they feel we are doing Get information on new needs and expectationsGet information on new needs and expectations

94. Self-Study Practice From our example: the State wants: From our example: the State wants: Jobs, sales increases & capital formation through attraction, retention and entrepreneurshipJobs, sales increases & capital formation through attraction, retention and entrepreneurship The Self-Study might include… The Self-Study might include… How we gathered information from our partners to see what is most important to themHow we gathered information from our partners to see what is most important to them Examples could be ____________Examples could be ____________ But most importantly:But most importantly: How we analyzed our information to conclude what their major needs are

95. How will we know it is working? Ultimate result would be: Ultimate result would be: Continued or increased funding Continued or increased funding Is waiting to see what happens enough?Is waiting to see what happens enough? Why or why not?Why or why not?

96. How can we nurture this relationship How can we be proactive? How can we be proactive? Communicate strategy to stakeholders in their language based on what is important to themCommunicate strategy to stakeholders in their language based on what is important to them Provide frequent information on what you are doing that they valueProvide frequent information on what you are doing that they value Need to understand and reconcile the variety of expectations of differing stakeholdersNeed to understand and reconcile the variety of expectations of differing stakeholders

97. 3.2 Customer Satisfaction What is the client feedback? How do we know that our market/client groups are being well served? What is the client feedback? How do we know that our market/client groups are being well served? We need to know what is most important to each key customer groupWe need to know what is most important to each key customer group Whatever we measure should be based on the key satisfaction drivers - Whatever we measure should be based on the key satisfaction drivers - We need to manage customer satisfaction instead of just seeing how it turned out - We need to manage customer satisfaction instead of just seeing how it turned out -

98. 3.2 Customer Satisfaction If Client feedback shows that If Client feedback shows that Our clients are very satisfied with something we have done Our clients are very satisfied with something we have done What would we do about it? What would we do about it? Do it again!Do it again!

99. 3.2 Customer Satisfaction First we need to understand:First we need to understand: What it is that led to their satisfactionWhat it is that led to their satisfaction Otherwise we can’t duplicate itOtherwise we can’t duplicate it

100. Self-Study Practice What do we typically do to measure client satisfaction? What do we typically do to measure client satisfaction? One option is to: One option is to: Ask how satisfied they areAsk how satisfied they are What do you think of this approach? What do you think of this approach? We need to understand what it is that leads to that satisfaction so we can duplicate that behavior. We need to understand what it is that leads to that satisfaction so we can duplicate that behavior.

101. Self-Study Practice How can we understand what is important to our clients? How can we understand what is important to our clients? Is it the same things for all of them? Is it the same things for all of them? How might we understand this better? How might we understand this better? Break our market down into pieces so we can make sense of them- using market segments Break our market down into pieces so we can make sense of them- using market segments

102. Market Segmentation Example of typical market segmentation Example of typical market segmentation Existing Existing Pre-venture Pre-venture Are the things that drive satisfaction the same for all Existing businesses? Are the things that drive satisfaction the same for all Existing businesses? Pre-venture clients? Pre-venture clients? What might be other options based upon our example? What might be other options based upon our example?

103. Client Satisfaction Practice Market Segments Break down the market into groups that have common needsBreak down the market into groups that have common needs It could be Clients in need of: Start-up loans Business Expansion loans Angel funding Venture capital Other options? Break down by loan size or business size Industry

104. Self-Study Practice Client Satisfaction and feedback Client Satisfaction and feedback How do we handle feedback – how do we give clients an opportunity to give feedback both good and bad?How do we handle feedback – how do we give clients an opportunity to give feedback both good and bad? Does this feedback give us the information we need to make improvements?Does this feedback give us the information we need to make improvements? What do we do with this feedback- how do we make changes based on this information?What do we do with this feedback- how do we make changes based on this information?

105. Components of Satisfaction Consider both “soft” and “hard” itemsConsider both “soft” and “hard” items The psychological needs: The psychological needs: EmpathyEmpathy CourtesyCourtesy RespectRespect The task needs The task needs Effective Communication that the client understands about what they can expect from the SBDCEffective Communication that the client understands about what they can expect from the SBDC Expertise of counselorExpertise of counselor Adequacy and convenience of facilitiesAdequacy and convenience of facilities Tools used in counselingTools used in counseling

106. 3.3 Marketing and Promotional Programs Marketing and Promotions should support: Clear integration of strategy, image Clear integration of strategy, image Common brand or logo Common brand or logo Convey the SBDC Image as a statewide cohesive network Convey the SBDC Image as a statewide cohesive network Professional Facilities Professional Facilities

107. Accreditation Category 6.0 program Delivery and Management

108. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and services

109. Category 6.0 Program Delivery and Management -How does SBDC leadership know what the SBDC must deliver for each key service to satisfy clients, key stakeholders, and the SBDC organization? a. From research and feedback flowing from section 3.1, client/stakeholder needs that reconcile with vision and mission; which was accomplished in 2.0, strategic planning. b. Surfacing from ongoing feedback and dialogue with customers and stakeholders arising out of work processes. b. Surfacing from ongoing feedback and dialogue with customers and stakeholders arising out of work processes.

110. Program Delivery and Management Section 6.0 Flowing out of strategic planning will be: Flowing out of strategic planning will be: a. Selection of one or more strategies. b. Targeted customers. c. Key services for targeted customers. d. Standard 6.0 focuses on how those services are developed and managed.

111. Category 6.0 Program Delivery and Management Objectives – Initial design of key services Objectives – Initial design of key services Establish a focus on the most important work provided for customers.Establish a focus on the most important work provided for customers. To be successful, the SBDC must have a basis and understand what the targeted customer groups want from us (key drivers).To be successful, the SBDC must have a basis and understand what the targeted customer groups want from us (key drivers). To satisfy the customer, the SBDC must know the expectations/key requirements of each customer groupTo satisfy the customer, the SBDC must know the expectations/key requirements of each customer group Let’s go back to our earlier slides where we identified customer groups, loan success factors and business success factorsLet’s go back to our earlier slides where we identified customer groups, loan success factors and business success factors

112. Category 6.0 Program Delivery and Management Example of what customers want: Example of what customers want: 1. Clients needing mid-sized loans a. Loan success factor – cash flow b. Business success factor – using competitive advantage 2. Clients needing micro loans a. Loan success factor – credit worthy b. Business success factor – ability to generate sales 3. Emotional Drivers

113. Category 6.0 Program Delivery and Management Objectives – Monitoring, evaluating, and improving key services Objectives – Monitoring, evaluating, and improving key services How are we performing? How are we performing? - Is the initial design of the key service what the customer wanted? - Is the initial design of the key service what the customer wanted? -Does the service meet customer requirements? -Is the service delivery efficient and effective? -Are we achieving the outputs/outcomes we anticipated? -Are we satisfied with our measure of customer satisfaction? -Do our work processes help us identify improvements? -Do we assess regularly?

114. Category 6.1 Key SBDC Services Why is this so important? We want to attract clients that have the highest potential for growth and have the ability, commitment, and desire to make it happen. We want to attract clients that have the highest potential for growth and have the ability, commitment, and desire to make it happen. What is the most effective approach? What is the most effective approach? There are many approaches to selling services in the marketplace. There are many approaches to selling services in the marketplace. Planned and executed correctly, all can work Planned and executed correctly, all can work

115. Category 6.1 Key SBDC Services Why is this so important? Two general approaches Two general approaches 1. Horizontal – where you have a key service that extends across broad customer groups Example: General management counseling or more narrow like loan counseling or business plan counseling What are the pros and cons of this approach? 2. Vertical – where you have key services with common elements specifically designed for one or more customer groups Example: Loan counseling for loans between $100K and $1.0 million targeting the food service industry and business plan counseling for early stage companies seeking to commercialize a new technology. What are the pros and cons of this approach? Which is likely the most viable approach to bring in those high growth companies? Which is likely the most viable approach to bring in those high growth companies?

116. Category 6.1 Key SBDC Services How does this drive value and improvement? How does this drive value and improvement? a. Focuses on key issues that are really important to the clients and supports the SBDC/client relationship b. Links to strategy d. Points to key measurements, monitoring, and feedback e. Empowers personnel to self manage their daily operations f. Implies skill sets needed for category 5.0 – for example skills set for loan counseling for loans of $100K - $1.0 million are discrete. f. Implies skill sets needed for category 5.0 – for example skills set for loan counseling for loans of $100K - $1.0 million are discrete.

117. Category 6.1 Key SBDC Services What else is important to the self study? What else is important to the self study? 1. Linkages between: a. customer and stakeholder needs a. customer and stakeholder needs b. strategy and customer groups and key services b. strategy and customer groups and key services c. key requirements and service delivery c. key requirements and service delivery 2. Two way feedback loop with customers, staff, and stakeholders. 3. How you maintain high quality client records and files. You may be asked to produce hard copy files. 4. Congruence of the key elements of the organizational plan or “it all ties, fits, and flows together”

118. Category 6.1 Key SBDC Services Key Requirements -Self Study Tip -Let’s take a look at a very, very simplistic example for work processes.

119. Category 6.1 Key Requirements Self Study Tip Example: Key Service – Counseling for loans applications Write to who (target customers) Customers needing $100K to $1.0mm Must address key success factors from 2.0 Write to what (requirements) from research in 2.0 Loan packaging Management experience/track record Using competitive advantage Write to how delivered

120. Category 6.1 Key Requirements Self Study Tip Example: Key Service – Counseling for loans applications  Write to how you measure progress or success What might those look like? What might those look like? How do the metrics support key success factors?  Write to how you monitor and improve performance

121. Category 6.2 Accreditation of Technology Programs If you are interested in pursuing a “T’ designation for your SBDC, please refer to Appendix A, ASBDC Technology Accreditation Standards, found at the end of the 2008 ASBDC Accreditation Standards. See also the separate Technology Self Study. If you are interested in pursuing a “T’ designation for your SBDC, please refer to Appendix A, ASBDC Technology Accreditation Standards, found at the end of the 2008 ASBDC Accreditation Standards. See also the separate Technology Self Study. The “T” standards and self study are based on the same accreditation standards; however, the information is very focused on the technology efforts. The “T” standards and self study are based on the same accreditation standards; however, the information is very focused on the technology efforts.

122. Accreditation Category 5.0 Staffing and Human Resource Utilization

123. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and services People and Skills

124. Faculty and Staff Enrichment Objective: Enable workforce to utilize its full potential by alignment with organization’s overall vision, strategy and action plans. Key is to focus on addressing key practices: 1. Directed toward creating a focus on: High-performance workplace and performance excellenceHigh-performance workplace and performance excellence By focusing on achievement and learning By focusing on achievement and learning CustomersCustomers Clear understanding of value creation Clear understanding of value creation Innovation and LearningInnovation and Learning Including evaluation, mentoring, teaching in and out of SBDC Including evaluation, mentoring, teaching in and out of SBDC Personal and Organization growth.Personal and Organization growth. 2. Enabling workforce and the SBDC to adapt to changes that lead to success.

125. Workforce Engagement Workforce engagement focus is on: Understanding of how SBDC engages workforce to achieve organization and personal success; Understanding of how SBDC engages workforce to achieve organization and personal success; Assessing SBDC systems for attracting, engaging, and developing workforce; Assessing SBDC systems for attracting, engaging, and developing workforce; Determining if culture is conducive to high performance. Determining if culture is conducive to high performance.

126. 5.1 Work Engagement Key Issues Evidence organizational structure, positions and staffing are: 1. Analyzed and in alignment with strategic objectives 2. Effective in achieving goals 3. Providing opportunities for communication among workforce 4. Providing evidence management is listening 5. Developing adequate compensation systems 1.to attract /retain skills aligned with vision and strategy

127. 5.2 Workforce Learning and Growth Focus on professional development programs that align with strategy: Including:Including: Evidence of how training needs are determined Evidence of how training needs are determined Evidence workforce training is supportive of high performance achievement Evidence workforce training is supportive of high performance achievement Clear linkages to high-priority strategic & action plans Clear linkages to high-priority strategic & action plans Structured training program for new workforce members. Structured training program for new workforce members. Assessment system, including feedback loops to determine effectiveness of training. Assessment system, including feedback loops to determine effectiveness of training.

128. Practice on skills required for strategy What are differences in the skill and training needs? Markets ID in Strategic Planning Process:Markets ID in Strategic Planning Process: Micro loans less than 25K total $50 million dollars Micro loans less than 25K total $50 million dollars Loan success- credit worthyLoan success- credit worthy Business key- ability to sell productBusiness key- ability to sell product Small loans>25-100K total $150 million dollars Small loans>25-100K total $150 million dollars Loan success- Cash flowLoan success- Cash flow Business key- Knowing Competitive advantageBusiness key- Knowing Competitive advantage Midsized loans> 100-1,000K total $300 million dollars Midsized loans> 100-1,000K total $300 million dollars Loan success- confidence/track record of managementLoan success- confidence/track record of management Loan packing Loan packing Business key- Knowing Competitive advantageBusiness key- Knowing Competitive advantage Large loans> 1-5 Million total $350 million dollars Large loans> 1-5 Million total $350 million dollars Loan success-Loan success- Historic financial performance Historic financial performance confidence/track record of management confidence/track record of management Business key-Business key- Knowing Competitive advantage Knowing Competitive advantage Mega loans> over 5 million total $150 million dollars Mega loans> over 5 million total $150 million dollars

129. 5.3 Workforce Environment and Motivation Focus is on: Maintaining a work environment and a workforce support climate that contributes to the well-being, satisfaction and motivation of all personnel. This environment Includes proactive exploration of workplace that: Ensures Health, safety, security and ergonomicsEnsures Health, safety, security and ergonomics Ensures preparedness for disasters or emergenciesEnsures preparedness for disasters or emergencies Determines the key factors that affect well-being, satisfaction and motivationDetermines the key factors that affect well-being, satisfaction and motivation Evaluates how SBDC maintains an open culture and climate conducive to workforce satisfaction and well beingEvaluates how SBDC maintains an open culture and climate conducive to workforce satisfaction and well being Supports workforce via services, benefits and policiesSupports workforce via services, benefits and policies

130. Accreditation Category 4.0 Information and Analysis System

131. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and servicesPeople and Skills Metric: How do we know

132. What is the scope of this standard? Encompasses all important business processes and activities which support the achievement of key strategies and sustainability of the organization Encompasses all important business processes and activities which support the achievement of key strategies and sustainability of the organization What does that mean? What does that mean?

133. In Other Words How are we doing?

134. Information and Analysis System Key elements : Key elements : measures key business processes and activitiesmeasures key business processes and activities analyzes the information that is collected from measurementsanalyzes the information that is collected from measurements reviews the analyses to support improvements or changes within the organizations’ key processes and activitiesreviews the analyses to support improvements or changes within the organizations’ key processes and activities the components of the system of information and analysis ties together and supports key strategies (alignment)the components of the system of information and analysis ties together and supports key strategies (alignment)

135. Selecting and Managing Metrics Drives desired behaviors and results by: Establishing Correlation between behavior and results– If I do this then… Establishing Correlation between behavior and results– If I do this then… Keeping Focus on most important actions and results – don’t get sidetracked with trivia Keeping Focus on most important actions and results – don’t get sidetracked with trivia Understanding Performance on a daily basis at both individual and organizational level – It must mean something Understanding Performance on a daily basis at both individual and organizational level – It must mean something Creating Trust in fairness and accuracy by all people in organization – If no one believes it then… Creating Trust in fairness and accuracy by all people in organization – If no one believes it then… Encouraging Cooperation within the organization. Encouraging Cooperation within the organization.

136. Building Blocks of the system Performance must be understandable on a daily basis at both individual and organizational level Performance must be understandable on a daily basis at both individual and organizational level What is measuredWhat is measured How it is calculatedHow it is calculated How it is usedHow it is used Trust in fairness and accuracy by all people in organization Trust in fairness and accuracy by all people in organization Data is available to workforceData is available to workforce Regularly explained to the workforceRegularly explained to the workforce Seek and use feedbackSeek and use feedback Cooperation within the organization towards common goals but allow for recognition of individual and team performance Cooperation within the organization towards common goals but allow for recognition of individual and team performance

137. Selecting Measurements Measurements should flow from key strategies, business processes and activities. Measurements should flow from key strategies, business processes and activities. Measurements should be important to the viability, success, and sustainability of the organization Measurements should be important to the viability, success, and sustainability of the organization A well planned information and analysis system will focus on key metrics relating to success with: A well planned information and analysis system will focus on key metrics relating to success with: CustomersCustomers WorkforceWorkforce StakeholdersStakeholders

138. Benefit to Organization Drives Communication on what is important for the SBDC Drives Communication on what is important for the SBDC Everyone understands how they are doing and what they need to doEveryone understands how they are doing and what they need to do Then they can make their own decisions so that their activities lead to the ultimate strategic goalsThen they can make their own decisions so that their activities lead to the ultimate strategic goals If metrics are properly designed they will drive behaviors toward achievement of key strategies.If metrics are properly designed they will drive behaviors toward achievement of key strategies.

139. What else is important? Aligns metrics to key organizational goals Aligns metrics to key organizational goals Metrics drive daily behavior Metrics drive daily behavior Data is validated so it is trustworthy Data is validated so it is trustworthy The data collection process is efficient and includes contingency plans to store and use data The data collection process is efficient and includes contingency plans to store and use data

140. What type of things should be included in this system? There are five broad categories to consider: There are five broad categories to consider: Key SBDC Service Results and OutcomesKey SBDC Service Results and Outcomes Customer Focused Results and OutcomesCustomer Focused Results and Outcomes Market Results and OutcomesMarket Results and Outcomes Human Resources Results and OutcomesHuman Resources Results and Outcomes Organizational Effectiveness Results and OutcomesOrganizational Effectiveness Results and Outcomes

141. Types of Measurements Lagging indicators: Lagging indicators: Show the ultimate result - the real value you are trying to get toShow the ultimate result - the real value you are trying to get to Leading indicators are things that point to the desired results (the lagging indicators): Leading indicators are things that point to the desired results (the lagging indicators): Measures of the key things that will lead to the ultimate result in the futureMeasures of the key things that will lead to the ultimate result in the future Things you can influence or control in the short termThings you can influence or control in the short term A good leading indicator will help your personnel understand what activities may lead to the ultimate desired resultsA good leading indicator will help your personnel understand what activities may lead to the ultimate desired results

142. Let’s look at the first category SBDC Service Results and Outcomes SBDC Service Results and Outcomes

143. SBDC Service Results and Outcomes This category focuses on overall SBDC Results and Outcomes – including those mandated by funding sources This category focuses on overall SBDC Results and Outcomes – including those mandated by funding sources Let’s look at our exampleLet’s look at our example

144. Self-Study Practice Self-Study Practice Key Strategy: Loan counseling and training for deals over $100,000 Key Strategy: Loan counseling and training for deals over $100,000 What is the ultimate value created by success? What is the ultimate value created by success? Why is this important? To whom? How will we know this is happening? How will we know we are doing a good job?

145. Self-Study Practice Self-Study Practice Review Stakeholder Ultimate Results Desired that tie to this strategy and SBDC vision : Review Stakeholder Ultimate Results Desired that tie to this strategy and SBDC vision : Key Stakeholders Success FactorsKey Stakeholders Success Factors Federal Federal Long-term engagements, business starts and capital formation with a special focus on target groups,Long-term engagements, business starts and capital formation with a special focus on target groups, State State Jobs, sales increases & capital formationJobs, sales increases & capital formation University University Outreach, visibility, access business communityOutreach, visibility, access business community SBDC visionSBDC vision Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation Recognition by entrepreneurs, the small business community, and key stakeholders as the primary provider of education, advice, and information for small and medium sized businesses resulting in greater access to capital and increased new job creation

146. Self Study Practice What programs and services did we decide to offer based on this strategy? What programs and services did we decide to offer based on this strategy? Loan Counseling and trainingLoan Counseling and training How can we know how we are doing?How can we know how we are doing? Hint: What we use here will show up again in section 7.1Hint: What we use here will show up again in section 7.1

147. Key Requirements Self Study Tip -Key Service – Counseling for loan applications -Things to think about: -What is the ultimate result -capital formation Can our counselors influence this directly? Will this information help them decide what they need to do today? Is it objective and believable? Does it provide information that will help improve our services so that we get the ultimate result we desire?

148. Self Study Practice Key Service – Counseling for loan applications Ultimate Result: (Lagging Indicator) Number and $ of approved loans Improvement in number of these Can we measure that? - Yes The problem: The result – an approved loan - is removed in time from activities that lead to it. It does not provide information to guide decisions by your counselors on what they need to do TODAY that will lead to loan approvals at some point in the future. What we need are leading indicators

149. Leading indicators How about: Number of clients Total Counseling hours Long term or EEC clients For this particular strategy would these provide the information we need? Other ideas might be: Number of clients submitting loan applications Number of referrals from clients and banks Number of calls on loan officers

150. Moving to the next category Customer Focused Results and Outcomes Customer Focused Results and Outcomes

151. Customer Focused Results and Outcomes This category focuses on your key customers (target market) as opposed to overall results This category focuses on your key customers (target market) as opposed to overall results This requires that your information and analysis system have the capability to segregate performance and satisfaction data specifically for your target market(s) This requires that your information and analysis system have the capability to segregate performance and satisfaction data specifically for your target market(s)

152. Customer Focused Results and Outcomes The target market here is customers who need a loan from $100K to $1.0mm The target market here is customers who need a loan from $100K to $1.0mm Examples of measurements might be: Examples of measurements might be: How many of these key customers did we attract?How many of these key customers did we attract? How many used the SBDC to assist with the loan package?How many used the SBDC to assist with the loan package? How many loans were successful?How many loans were successful? What is the level of client satisfaction?What is the level of client satisfaction?

153. And the next category of measures is Market Results and Outcomes Market Results and Outcomes

154. Market Results and Outcomes This category focuses on your key customer group(s) or target markets and how well you are doing relative to the overall market place results This category focuses on your key customer group(s) or target markets and how well you are doing relative to the overall market place results For example: For example: Compare the SBDC client loan success rate with the overall market rate of success for loans between $100K - $1.0mm.Compare the SBDC client loan success rate with the overall market rate of success for loans between $100K - $1.0mm. Measure the 2-5 year survival rate for SBDC clients (who were successful loan applicants) against the overall 2-5 year market survival rate for successful loan applicants.Measure the 2-5 year survival rate for SBDC clients (who were successful loan applicants) against the overall 2-5 year market survival rate for successful loan applicants. Is this difficult? YES, but we have to work on understanding how we are performing relative to the overall market for our customer group(s).

155. Market Results and Outcomes How else might be measure our market place performance? How else might be measure our market place performance? Benchmarks that allow us to compare our results to others Benchmarks that allow us to compare our results to others We could use the National impact surveyWe could use the National impact survey How would that work?How would that work? Key customer group – clients with 5+ hours of contact and preparation Key customer group – clients with 5+ hours of contact and preparation New jobs createdNew jobs created New CapitalNew Capital Customer satisfactionCustomer satisfaction How do we use this information?How do we use this information? If other programs are doing better we can get information on what they are doing to achieve these results If other programs are doing better we can get information on what they are doing to achieve these results

156. Now the fourth category of metrics Human Resources Results and Outcomes Human Resources Results and Outcomes

157. Human Resources Results and Outcomes This category focuses on workforce satisfaction and in particular: This category focuses on workforce satisfaction and in particular: LeadershipLeadership Learning and educationLearning and education Working environmentWorking environment DiversityDiversity CommunicationsCommunications

158. Human Resources Results and Outcomes How and what might we measure? How and what might we measure? Periodically assess workforce feedback though surveysPeriodically assess workforce feedback though surveys Use a professionally proven survey like the Baldridge “How are we doing” so your results can be validated and be comparableUse a professionally proven survey like the Baldridge “How are we doing” so your results can be validated and be comparable Ask for feedback on all key aspects of your key business processes and activitiesAsk for feedback on all key aspects of your key business processes and activities Assess whether our professional development and training are really improving the quality of your services and/or increasing the capacity of our workforceAssess whether our professional development and training are really improving the quality of your services and/or increasing the capacity of our workforce

159. And now the final category of measures Organizational Effectiveness Results and Outcomes Organizational Effectiveness Results and Outcomes

160. Organizational Effectiveness Results and Outcomes This category focuses on how effective your SBDC is using its resources from funding partners This category focuses on how effective your SBDC is using its resources from funding partners The private sector analogy is ROI or Return on Investment The private sector analogy is ROI or Return on Investment The opportunities here are limitless and should be tailored to your key strategic goals The opportunities here are limitless and should be tailored to your key strategic goals

161. Organizational Effectiveness Results and Outcomes How might we measure effectiveness? How might we measure effectiveness? ROI from the national impact surveyROI from the national impact survey Number of clients needed to produce one successful loanNumber of clients needed to produce one successful loan Number of loan packages to produce $1.0mm in new capitalNumber of loan packages to produce $1.0mm in new capital Average amount of new capital per F/T counselorAverage amount of new capital per F/T counselor

162. Now you understand the underlying concepts! Why are we doing this?  Enables the SBDC workforce to know what is important.  Guides the SBDC workforce to make decisions on daily activities.  Informs SBDC leadership on how well key strategies are working.

163. How do we learn from this? We collect information on key business processes and activities - METRICS We collect information on key business processes and activities - METRICS And on the results obtained – MORE METRICS And on the results obtained – MORE METRICS We analyze that data We analyze that data We use the information to drive decisions and improvements We use the information to drive decisions and improvements **** Metrics, measurements, milestones, and goals are synonymous

164. Are all metrics productive? No! Metrics can be negative if: Metrics are not aligned with strategy - If you acted based on them, it would lead you to results that are not those desired. Metrics are not aligned with strategy - If you acted based on them, it would lead you to results that are not those desired. The information is not important to the organization, to stakeholders or to individuals in managing their daily workThe information is not important to the organization, to stakeholders or to individuals in managing their daily work No one believes themNo one believes them Too many metrics create confusion on what is importantToo many metrics create confusion on what is important

165. What should this system do? High performing information and analysis system should be key driver of: Desired behaviors and results Desired behaviors and results Strong correlation between behavior and results Strong correlation between behavior and results Focus on most important actions and results Focus on most important actions and results

166. Self Study Tips Describe your performance system including: Describe your performance system including: What you measure and whyWhat you measure and why How you process and analyze the dataHow you process and analyze the data What you do with the analysisWhat you do with the analysis Provide examples of how you use the dataProvide examples of how you use the data Key measurements for all the five major categories of performanceKey measurements for all the five major categories of performance Describe the communication process you use to make information available to the workforce and stakeholdersDescribe the communication process you use to make information available to the workforce and stakeholders

167. How does this all relate to 7.0 - Results 7.0 – Results 7.0 – Results This standard looks at how you use the information from 4.0 from the five major categoriesThis standard looks at how you use the information from 4.0 from the five major categories This standards looks at how you use the data over time – 2-5 yearsThis standards looks at how you use the data over time – 2-5 years This standard looks at long term management and decisions of the SBDC based on what flows from the information and analysis systemThis standard looks at long term management and decisions of the SBDC based on what flows from the information and analysis system

168. Accreditation Category 7.0 Results

169. High Performance Management Accreditation Customer and Stakeholder Vision Strategic Planning Leadership System Drivers of Customers Satisfaction Product and servicesPeople and Skills Metric: How do we know Results and analysis

170. Let’s Make This Easy What did we learn in 4.0 – Information and Analysis System? What did we learn in 4.0 – Information and Analysis System? SBDCs must identify key measurements for the five broad categories of performanceSBDCs must identify key measurements for the five broad categories of performance SBDC Service Results SBDC Service Results Customer Focused Results and Outcomes Customer Focused Results and Outcomes Market Results and Outcomes Market Results and Outcomes Human Resource Results and Outcomes Human Resource Results and Outcomes Organizational Effectiveness Results and Outcomes Organizational Effectiveness Results and Outcomes

171. Let’s Make This Easy The data resulting from those individual measurements in the five categories should: The data resulting from those individual measurements in the five categories should: Be AnalyzedBe Analyzed Be Used to drive improvement/changesBe Used to drive improvement/changes Point to most important SBDC activitiesPoint to most important SBDC activities Be a key driver for daily activities and decisionsBe a key driver for daily activities and decisions

172. The Next Steps Let’s start accumulating that key information and analysis over time – 2-5 years Let’s start accumulating that key information and analysis over time – 2-5 years We need to think about how to display the data to be most helpful We need to think about how to display the data to be most helpful We need to identify trends which may help us improve the business and performance We need to identify trends which may help us improve the business and performance

173. How Can We Look at Data Over Time? Graphs Graphs Tables Tables Charts Charts Other comparables Other comparables Compare to benchmarks Compare to benchmarks Growth Rates Growth Rates

174. So How Would this Look Let’s start with 7.1 – SBDC Service Results and Outcomes Let’s start with 7.1 – SBDC Service Results and Outcomes Measurements here might be: Measurements here might be: Long term or Extended Engagement ClientsLong term or Extended Engagement Clients New Jobs CreatedNew Jobs Created New Business StartsNew Business Starts Let’s look at how five years of data might help us!

175. Let’s Graph 7.1 Measurements

176. Graph 7.1 What did we learn here? What did we learn here? EECs are going downEECs are going down New jobs are going downNew jobs are going down Business starts are going upBusiness starts are going up What might be happening here? Perhaps SBDC leadership is sending a message that new business starts have priority. But what if new jobs are the basis for funding?

177. Let’s look at 7.2 – Customer focused results and outcomes Key customer group here is clients needing $100K – to $1.0mm loans Key customer group here is clients needing $100K – to $1.0mm loans Let’s use a table to show results Let’s use a table to show results Loan Apps 1518202729 LoanSuccess1012172126 % of EECs to total 2030354050

178. What is Next? Same type analysis for: Same type analysis for: 7.3 – Market Results and Outcomes7.3 – Market Results and Outcomes 7.4 – Human Resources Results and Outcomes7.4 – Human Resources Results and Outcomes 7.5 Organizational Effectiveness7.5 Organizational Effectiveness This is not complicated, but rather good long term business analysis to spot areas for improvement or opportunities

179. Good News We have just finished Categories 1-7 of the Accreditation Process We have just finished Categories 1-7 of the Accreditation Process Now I am going to talk about what you should expect from the Accreditation Committee Now I am going to talk about what you should expect from the Accreditation Committee

180. ASBDC ACCREDITATION COMMMITTEE HOW THE COMMITTEE WORKS!

181. Committee History Congress passed law in 1994 for SBDC oversight Congress passed law in 1994 for SBDC oversight SBA is responsible for a review process of each SBDC every four years SBA is responsible for a review process of each SBDC every four years SBA contracts with the ASBDC to perform the accreditation function SBA contracts with the ASBDC to perform the accreditation function Antonio Doss and Jean Smith of the OSBDC at SBA participate in all committee activities and meetings including training and report consideration. Antonio Doss and Jean Smith of the OSBDC at SBA participate in all committee activities and meetings including training and report consideration.

182. Committee Structure Chair – elected by the accreditation committee every two years and confirmed by the ASBDC Board of Directors Chair – elected by the accreditation committee every two years and confirmed by the ASBDC Board of Directors Vice Chair and Secretary – elected by the accreditation committee every two years Vice Chair and Secretary – elected by the accreditation committee every two years Twenty five members authorized Twenty five members authorized Committee eligibility - State/Region directors and Assoc/Asst state/region directors Committee eligibility - State/Region directors and Assoc/Asst state/region directors Committee members are nominated by the Chair and confirmed by the ASBDC Board of Directors Committee members are nominated by the Chair and confirmed by the ASBDC Board of Directors

183. Committee Members Chair – Mike Young Chair – Mike Young Vice Chair – Marc King Vice Chair – Marc King Secretary – Carmen Marti Secretary – Carmen Marti Lora BrownChristian Conroy Lora BrownChristian Conroy Duane FladlandJody Keenan Jim King Liz Klimback Carol Lopucki Kelly Manning Beth MelnikMichael Myhre Barbara NecarsulmerMark Petrilli Brett Rogers Al Salgado Max SummersHank Turner Mary Lynn Wilkerson

184. Incoming Committee Members Marjorie Miskec Marjorie Miskec Katie Sewell Katie Sewell Greg Panichello Greg Panichello

185. Accreditation Committee How we work Training – all member complete core accreditation training plus an annual update Training – all member complete core accreditation training plus an annual update Example – the three incoming members will participate in approximately 15 hours of core accreditation committee training at the ASBDC fall conferenceExample – the three incoming members will participate in approximately 15 hours of core accreditation committee training at the ASBDC fall conference All committee members will complete 14 hours of training at the ASBDC Spring ConferenceAll committee members will complete 14 hours of training at the ASBDC Spring Conference

186. Accreditation Committee How we work Committee Member Responsibilities Committee Member Responsibilities Complete all required annual trainingComplete all required annual training Participate in two or more accreditation reviews annuallyParticipate in two or more accreditation reviews annually Work as an editor on one or more reviews annuallyWork as an editor on one or more reviews annually Participate in all meetings and conference callsParticipate in all meetings and conference calls Work on special initiatives of the accreditation committee such as updating the accreditation standards and self study, writing training curriculum, conducting training sessions, and updating manuals.Work on special initiatives of the accreditation committee such as updating the accreditation standards and self study, writing training curriculum, conducting training sessions, and updating manuals.

187. Accreditation Committee How we work Accreditation Reviews Accreditation Reviews Generally 15-16 annuallyGenerally 15-16 annually Chair notifies and reminds state/region directors of upcoming reviews in year preceding the scheduled reviewChair notifies and reminds state/region directors of upcoming reviews in year preceding the scheduled review Teams are assigned by the Chair and Vice Chair in November of the preceding yearTeams are assigned by the Chair and Vice Chair in November of the preceding year Team size varies from 2-4 based on the state/regionTeam size varies from 2-4 based on the state/region

188. Accreditation Committee How we work What You Should Expect Team will be assigned in November of the preceding year Team will be assigned in November of the preceding year Team leader and team members should contact the State/Region Director in December of the preceding year Team leader and team members should contact the State/Region Director in December of the preceding year Team leader will explain accreditation process and answer questions Team leader will explain accreditation process and answer questions Schedule the review date – team will accommodate the state/region, but does not have the ability to extend the review date beyond the calendar year Schedule the review date – team will accommodate the state/region, but does not have the ability to extend the review date beyond the calendar year

189. Accreditation Committee How we work What You Should Expect Team will confirm that you have a current copy of accreditation standards and self study including “T” if applicable Team will confirm that you have a current copy of accreditation standards and self study including “T” if applicable Team will explain role of self study and answer questions Team will explain role of self study and answer questions Team will advise the state/region director that the self study should be delivered to the team 30 days prior to the review with a copy to the ASBDC. Team will advise the state/region director that the self study should be delivered to the team 30 days prior to the review with a copy to the ASBDC.

190. Accreditation Committee How we work What You Should Expect State/region director is strongly encouraged to complete the self study in electronic version either CD or web based. State/region director is strongly encouraged to complete the self study in electronic version either CD or web based. Self Study Tip – Write directly to answer the questions Self Study Tip – Write directly to answer the questions Example – In 1.1, the self study ask “How do senior leaders routinely monitor performance results to drive continuous improvement?”Example – In 1.1, the self study ask “How do senior leaders routinely monitor performance results to drive continuous improvement?” Write how you do your work. For example, if you haven’t visited and conducted a center review in the last 2 years, just explain why and if you believe there are other mitigating processes.Write how you do your work. For example, if you haven’t visited and conducted a center review in the last 2 years, just explain why and if you believe there are other mitigating processes.

191. Accreditation Committee How we work What You Should Expect Team should resolve any pre-review issues Team should resolve any pre-review issues Team will ask for assistance in planning itinerary and hotel accommodations Team will ask for assistance in planning itinerary and hotel accommodations Team will want to physically visit many of your centers but can achieve wider coverage by using central location for staging several service centers or video conferencing Team will want to physically visit many of your centers but can achieve wider coverage by using central location for staging several service centers or video conferencing You may be asked if you would object to an observer. You may be asked if you would object to an observer.

192. Accreditation Committee How we work What You Should Expect State/Region is responsible for providing ground transportation and driver for visits during the week State/Region is responsible for providing ground transportation and driver for visits during the week Team may ask to meet with you privately on Sunday afternoon preceding the review to discuss any sensitive issues you may have Team may ask to meet with you privately on Sunday afternoon preceding the review to discuss any sensitive issues you may have Team will always meet with state office personnel on Monday and then move on to service centers Team will always meet with state office personnel on Monday and then move on to service centers Team may elect to conduct interviews privately or ask you to sit in with them. Team may elect to conduct interviews privately or ask you to sit in with them.

193. Accreditation Committee How we work What You Should Expect Team will meet with state/region director’s direct report and the SBA District Director. Team will meet with state/region director’s direct report and the SBA District Director. Team should brief you on any significant questions or observations Team should brief you on any significant questions or observations Team will attempt to finish field work by mid-day or early afternoon Thursday Team will attempt to finish field work by mid-day or early afternoon Thursday Team will provide a briefing to the State/region director on Friday Team will provide a briefing to the State/region director on Friday

194. Accreditation Committee How we work What You Should Expect Team will send a draft report in about three weeks reflecting their work and editor review Team will send a draft report in about three weeks reflecting their work and editor review State/Region has two weeks to submit errors of fact and any other comments and suggestions State/Region has two weeks to submit errors of fact and any other comments and suggestions Generally the report will be considered at the next regular meeting of the committee absent urgent circumstances Generally the report will be considered at the next regular meeting of the committee absent urgent circumstances

195. Accreditation Committee How we work What You Should Expect Full committee can accept team’s recommendation, reject, or ask for change of report. Full committee can accept team’s recommendation, reject, or ask for change of report. State/Regions will either be accredited, accredited with conditions, or deferred. State/Regions will either be accredited, accredited with conditions, or deferred. Denial can occur if conditions are not met within the prescribed time period. Denial can occur if conditions are not met within the prescribed time period. State/Region at all times should expect the team to conduct themselves as professionals. State/Region at all times should expect the team to conduct themselves as professionals.

196. This Is The Moment You Have Been Waiting For! WE ARE FINISHED LET’S ADJOURN FOR THE BAR