Developing a Successful HUB Program

Presented By: Norma Barrera Texas Education Agency West Texas Business Summit 2013 Hosted By: Texas Tech University Lubbock, Texas Developing a Successful HUB Program

Agenda 3 Commitment Matchmaking Best Practices Set Metrics and Check Monthly Leadership Establish Goals Education ✓

Developing a Successful HUB Program Agenda Mentor-Protégé Teams Reporting 2 nd & 3 rd Tier Challenges Certification Reporting 2 nd & 3 rd Tier ✓ EOFs / HUB Forums

Support from the top Adopt a “HUB Business Policy” Acceptance of the program starts with you Without visible support most programs are stagnant 1. Commitment

HUB Coordinator needs strong organizational & communication skills Understand the agency’s procurements Liaison between buyers, HUBs, and prime vendors Coach and mentor all three groups 2. Leadership

Definition – Methods that consistently indicate results are superior or in process of being superior. Add a HUB section on your website Talk with other HUB Coordinators CPA HUB Rules 3. Best Practices

Research your HUB Report Select the categories you want to improve Identify your goals for key areas and set a time period to accomplish Track improvement 4. Establish Goals

Track metrics – revise policies, enhance the level of outreach efforts or increase % Track expenditures by contract, departments, or cost centers Check in with senior management on the status 5. Set Metrics

Increasing involvement within your organization is key to your HUB Program Get buyers involved so they can develop relationships and help create ways to partner with HUBs Promote success stories internally & at your forums 6. Education

HUB & Procurement Teams = 1 The Buyers are vital in the process, they get to know the HUBs and provide them key information about your agency’s or university’s procurements. The Buyers will have a better understanding of the HUBs capabilities, products and services.

Help Primes identify HUB firms Help HUBs identify Primes Set up Specialized Forums Procurement Roundtables Keep in Communication with the Groups 7. Matchmaking

1.Leadership starts at the agency / university. 2.Commitment is within all the groups 3.In the Decision Making process it is important to consider all possible solutions that is how you run your HUB Program. 4.Minority firms can offer new opportunities and fresh perspective in the procurement. 5.Primes shouldn’t limit themselves to few options, they should perform due diligence and explore many choices. Relationships Agency Subcontractors Prime

HUBs are small businesses and some primes may overlook their ability to add value Primes can help HUBs meet their own contracting standards Be involved in the meetings 8. Mentor-Protégé Teams

Research the lists of current subcontractors Many companies may qualify as a HUB but have not taken the steps to become certified You may be able to increase HUB % by simply assisting them to get certified 9. Certification

Your database & other tools provide a good summary, but you must be actively engaged for improvement and in seeking HUBs in your procurements Host a procurement conference for buyers and suppliers to interface Host a meet the “Prime” 10. EOF / HUB Forums

Use testimonials at your Forums. Promote success stories. Have you helped a HUB to grow and expand? Did a HUB win a contract? Which buyer had the most % of HUBs in a contract that month. Highlight Mentor-Protégé teams. Networking Reach out to other HUB Coordinators Survey the buyers, HUBs, primes Learn about strategies that are effective

A tier 1 vendor is the entity you contracted with to provide the goods/services = Prime A tier 2 vendor is the entity that provides a good/service to the Prime in relation to your contract = Subcontractor A tier 3 vendor is the entity that provides a good/service to the Subcontractor Report thru the PAR 11. Reporting 2 nd & 3 rd Tier

Direct-spend 2 nd /3 rd tier purchasing refers to those products and services that can be identified in support of the customer’s requirements. Indirect-spend 2 nd /3rd tier purchasing refers to those products and services that cannot be identified in support of the customer’s requirements. 11. Reporting 2 nd & 3 rd Tier

Progress Chart – Keep it Visible HUB Goal $1M Sept $4M March $6.8M August

Commitment (lack of) Time Acceptance Progress is slow HARD WORK 12. Challenges

A Successful HUB Program Saves Money Creates Jobs Attracts Vendors

Improving Your HUB Program Overview Commitment Matchmaking Best Practices Set Metrics and Check Monthly Leadership Establish Goals Education ✓ ✓ ✓ ✓ ✓ ✓ ✓

Your Improving Your HUB Program Overview Mentor – Protégé Teams EOFs / HUB Forums Challenges Certification Reporting 2 nd & 3 rd Tier ✓ ✓ ✓ ✓ ✓

Your own footer Educate your agency / university -Engage the procurement team & prime vendors Get buy-in Analyze your HUB Report -Set goals & metrics with a fresh set of eyes Publish results Closing

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