Innovative Marketing and Sales Strategies
Growing Correctional Industries Program and Profitability
Exercise
Birthright Exercise
◦ Separate into 4 Groups
Youngest Children Oldest Children Middle Children Only Children
◦ Select a spokesperson and determine what advantages there are to your birthright and then sell the rest of the class on your reasoning.
Organizational Challenge• Trying to balance between being a economically
feasible and sustainable business while still being an effective correctional program?
• Misconceptions of “Prison Made Goods”
• Public Perceptions
• Legislative Issues
• Managing Change
REALITY CHECKWhere is your organization on the Business Life Cycle?
Momentum
Growth Cost Cutting
Decline
Position
What Slows, Stunts, or Stops Growth?• Uncertainty—How do we adapt/change• Takes to Long• Fear• Culture Meaningless Brainstorming Sessions Great Ideas seem to stall We sometimes invest in wrong or bad ideas
Obstacles
We have the capacity and workers that can build almost anything…….
Problem—we don’t know what exactly would be the most beneficial items to build/manufacture or how to penetrate a market.
Conundrum
Process Overview
NIST/MEP/GENEDGE ◦ Innovation Engineering
Systematic Approach to Marketing our Capacity
Similar to Lean Six Sigma
4 Step Process◦ Define—Clarity on Raw Concept◦ Discover—Fail Fast, Fail CHEAP◦ Develop—Make it REAL◦ Deliver—Go to Market
Ch
arte
r—S
cop
eProject Charter
Project Name: Unicor Innovation & Growth System Pilot Project Start Date: May 9, 2013 Status Date: May 29, 2013
<company logo>
Area of Business: Unicor Team Leader: Brad BeusProject Sponsor(s)Ken Yeich Executive Sponsor: Mary M. Mitchell (Asst. Director, COO FPI)
Project Plan Expectation is to complete the project in TBD (target date for developing concepts for development at least by new fiscal year)
Business ImpactThe prototype process, once fully adopted, will allow Unicor to consistently increase the number of inmates employed at a target of 10% annually, and, while doing so, maintain self-sufficiency.
Opportunity or Problem StatementUnicor needs to grow its business in order to increase inmate work opportunities. There has been a historic 30% decline in revenues and bottom line since 2009. There has been a corresponding reduction in prison employment of 43% over the same period. Recycling and textiles have been flat, while furniture, services and electronics have experienced steep declines.
. Goal StatementBuild a prototype process that identifies, vets and develops new products and services, new markets and new relationships. Quickly evaluate them against risk-adjusted standards (criteria) to Define and Discover idea potential before investments are made in Development and Delivery of new business opportunities. Emphasis on target customer problems and opportunities that are unique and solve customer problems, with proof and margins that support the business case. Corporate managers and business managers need to develop processes, strategies and expertise to develop and screen new business ideas.
Project ScopeIn Scope: Out of Scope:New, current and emerging market opportunitiesRepatriation opportunitiesPrison Industries Enhancement opportunitiesProducts/Processes/Services-Business Models
Projects that negatively impact domestic private sector employment
Create Project Charter
Select Team
Begin planning
Introduction to IE Labs Portal
Prepare for Market Research (or assign
homework)
Determine Market(s)
Conduct Market Research
Translation And Coaching
Review Market Research
Stimulus Mining
Formulate Market CTQ's
Develop Idea Starters
CREATE Session (Idea Generation)
Cycles Of Learning
Submit Concept Merwyn Analysis
Review Results
Revise Concept, if necessary
Go / No Go Decisions
Create Plan for specific product development /
commercialization activities, if viable
Prepare Plan for Commercial
Development
Define Measure Analyze Discover Develop
Team SelectionName Role % Time Name Role % Time
20Bill Donohue (GENEDGE) Management Coach 10 Peter Laguardia Core Team 20Mike Kelleher (IMC) Process Coach 10 John Roderique Core Team
20Mike Levy (GENEDGE) Process Coach 10 Kim Armfield Core Team 20Brad Curtis Core Team 20 Steve Harrison Core TeamJoe Sers Core Team 20 Chuck Darrin Core Team 20Eric Peipert Core Team 20Marie France Vareilles Transitioning Core Team 20Dennis Merrion Core Team 10
SW
OT
Buyers from private industries default to foreign sources/perks
Legislative changes
Competitive Pricing
Opportunities Threats
Foreign competition / pricing strategies
Social responsibility
ISO - military quality standards of manufacturing
Products are U.S. made
Agility / Surge capacity capabilities
Weaknesses
U.S. made products / "Buy America"
ISO / LSS certified
Negative perception of prison industries / labor
Ability to respond to external criticism
Lack of small business credit; no tax credit
Not structured for formal, ongoing, strategic R&D
Forecasting, BCA are sub-optimized
Lack of engineering expertise
Proof of Business Model Resiliency
Inherent inefficiencies of given environment / labor force
Viewed as supply chain risks for some new customers
Social responsibility
Reputation / brand with both private and government sectors
Financially low-risk partner, AAA rating
Two new authorities (Repatriation + PIE)
Government agencies not served
Excess capacity ready to scale / use
Business Model flexibility
Preferred source for government
State government procurement
Proximity Sourcing
Value Chain SWOT Analysis
5/9/2013
Preferred source for government
OSHA compliant
Modern enterprise (SAP)
Strong balance sheet for investment / readiness
Order-to-ship cycle is very quick
Available Infrastructure throughout the U.S.
Turnkey provider attracts customers, not many in U.S.
Strengths
Difficulty in procuring as part of internal policy (FPAR)
Limited understanding of commercial markets
Internal bureaucracy / responsiveness to customers
Delivery speed to market, efficient logistics / transportation
Available, integrated workforce
OVERALL MARKET RANK ("A"= GREAT OPPORTUNITIES;
"B"=VERY LITTLE OPPORTUNITY)
Market size $ / potential (H, M, L)
PIE opportunities exits? (Yes or No)
Repatriation opportunities exist?
(Yes or No)
Industry leverages existing capabilities?
(Yes or No)
CURRENT & NEW MARKETS:
MARKET SEGMENT - COMPETITORS
A H Y Y Y
SIGNS
A H Y Y Y
INDUSTRIAL FILTERS - 3M is the largest competitor, selling to government and commercial clients
A H Y Y Y
Textiles - Propper International, American Apparel (AL based), National Industries for Blind + 80-150 small businesses including sheltered workshops.
A H Y Y Y
Electronics--Renewable Energy and Energy Efficiency Products. Large Chinese manufacturers are the largest and most damaging competitors.
A H Y Y Y
Electronics--Cable, Communications, Rubber Molding, Electrical Boxes, Assembly, Wire Harnesses
B H N Y Y
OFFICE FURNITURE ("SYSTEMS") -- Knoll, Kimball, Hayworth, Herman Miller
B H N Y Y
PRINT SERVICES - General Printing Office; Defense Dept. (DFAS); RR Donnelly is a major competitor
B H (INCLUDES REPAIR) Y Y Y
ELECTRONICS - FLEET (UPFIT RE-SET) -- small competitors; GSA on fringes (upfit); in Reset competitors may also be customers; Depots.
B H Y N Y
DISTRIBUTION
C M N Y Y
Electronics--Plastics/Optics. Very limited current market selling internally to BOP.
C M N N Y
ELECTRONICS RECYCLING: (roughly 1,000 market participants). Mom and Pops. ERI, Simms (largest in the world) and Waste Management (all public); state prisons insignificant
C L (But total market="H") N Y N
CALL CENTER SERVICES: Verizon, Avaya (any telecommunications firms that are turnkey). Compete to bring offshore centers onshore.
CM (alternate markets very attractive
potentially) N Y N
DATA SERVICES PROGRAM: Data Entry, Scanning, Typing Services, CAD operations
KA
NO
Data Mining
◦ Tech Mining
◦ Market Mining
◦ Future Mining
◦ Insight Mining
Sti
mu
lus
Min
ing
CRITICAL INNOVATION THEME IDEA STARTER
INFORMATION CONVERSION AND HIGH TECH SERVICES Need ideas for technology work or related services which may provide a pathway to future inmate potential and sustainable growth
REVERSE LOGISTICS, RE‐USE INDUSTRIES Need ideas for successful engagements in cyclical or niche manufacturing, sorting, packaging and assembly for "leftovers"
REVISIT VIABLE LOST OPPORTUNITIES
Need ideas on how to regain lost or past customer opportunities, or re‐target government agency opportunities we lost to offshore competitors
PENETRATE CURRENT OFFERINGS Need ideas on how to acquire more BOP or current customer work (including better business development processes)
MADE IN U.S.A. LABEL
Need ideas on how to engage traditional U.S. companies who now source mostly offshore, yet might wish to grow % of U.S. labelled products as part of their brand or competitive strategy
SOCIALLY CONSCIOUS SUPPLY CHAINS Need ideas for providing services to companies who want to verify made in U.S.A. or maintain brand integrity by certifying their supply chains.
CONTRACT MANUFACTURING Need ideas to tap new and existing channel extensions and partnering opportunities as an ongoing strategy for growth
UNICOR TO THE RESCUE WITH TOTALLY NEW IDEAS Need ideas on how Unicor can fill gaps in labor‐intensive industries completely new to us, such as agriculture or other industries
TARGET IMPORTS Need ideas on how to engage with supply chains who now have service, quality, or logistics/cost gaps in non‐domestic production fulfilment.
LARGE DEFENCE CONTRACTORS & NICHE SUPPLY CHAIN Need ideas for breakthrough opportunities in electronics or other applications
(Value) 0.5 1 2 3
AUTHORITY COMPLEXITY New New Repatriation Approval From UNICOR BOD Existing Authority
CAPITAL REQUIRED >$500k <$500k <$10k In place (little to none req'd)
DIFFICULTY New Market & New Technology New Markets Adjacent Markets Existing Markets
BENEFIT Employs Few Prisoners & Low Margin
Employes Many Prisoners, But Low Margins
Employs Few Prisoners, But High Margins
Employs Prisoners, Plus High Margins With Growth
Potential
PRIO
RIT
IZA
TIO
N C
ATE
GO
RY
Evaluation Prioritization
Rating Ideas
Inve
ntor
Na
me
Mar
ker
for
Sele
cted
Id
ea
Matt Swartz A Reincarnation For After-Life Vehicles 3 3 2 3 54Robert Stitt Configurator For Existing Unicor Webpage - JUST DO IT 3 2 3 3 54Ken Yeich C Outfitting Our Regions (Standardized Purchasing) 3 3 3 1 27
Steve Harrison C "Make It For Ourselves" - Outfitting Prisons With Commissary Items 3 3 3 1 27Chuck/Brad D Wire Harnesses 2 3 2 2 24Brad Curtis E New Brand Of "Penetentiary Products" Outdoor Gear (Version B) 2 3 1 3 18
Robert Grieser F Local/Regional Warehouse Space Trained Labor Pool Available 1 3 2 1 6Ben Logan E "Hard Labor" Brand - New Brand From FPI 2 0.5 1 3 3
Mark Turner G Prison Made Plastics/Food Trays, Cups, Flatware for Institutional Markets 2 3 2 2 24Dennis Merrion Heavy Duty Therapeutic Massage Chair For VA Hospitals 3 2 2 3 36Janet Connor QR Codes Make Your Day Easier - Just Do IT 3 1 3 3 27Jan Hynson Exclusive QVC Brand "Eye-C-U Readers and Sunglasses 2 3 2 2 24
Paul Campbell Zero Footprint Mattress Purchasing - Breakthrough In Mattress Recycling 3 1 3 2 18Pete LaGuardia Usage / Installation LED Lighting In BOP Facilities 3 3 2 1 18John Meagher Applications / System Solutions + PV for Developing Countries 2 3 1 3 18Gary Grabau Creative Solutions For U.S. Manufacturers & Startups 2 3 2 1 12Shirley Holm Data / Info Services For Government Agencies 3 1 2 2 12
John Roderique Secure Destruction of Goods Seized By Law Enforcement 3 2 2 1 12Carolyn Web Page Update Services For Government Agencies 3 2 2 1 12
Brad Curtis New Brand Of "Penetentiary Products" Outdoor Gear (Version A) 1 3 1 3 9Joe Sers Large Government Accounts Buy Total USA - AGAIN ! 3 3 1 1 9
Rudy Szollar Electronic Advertising / Marketing Sign For Retail Customer Experience 2 2 1 2 8Al Sheppard "Solar Farm" - Clean Green Energy & FPI 2 3 1 1 6Mike Killmer Unicor Expanding Offerings In GSA Catalogue 3 1 2 1 6
John Meagher PV Renewable Energy For Widescale Power Availability In Developing Countries 2 3 1 1 6
Stephanie Santucci Razor Edge Designs - Clothing & Apparel Allows You Self Expression 2 0.5 0.5 3 2
Concpt Name Aut
horit
y C
ompl
exity
(B):
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I x U
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Focus Areas
FINAL IDEAS SELECTED BY ALL PARTICIPANTS
PROJECT LEADER TEAM MEMBERS
Automotive Harness Manufacturing Carolyn Sheedy Brad Beus, Chuck Derrin, Pete LaGuardia, Leslie Barkemeyer
Hard Labor Brand – New Brand of Penitentiary Products Ben Logan Brad Curtis, Jan Hynson,
Stephanie Santucci Local/Regional Warehouse Storage &
Labor Services Shirley Holm Robert Grieser, Gary Grabau, Janet Conner
Outfitting for Prisons Rudy Szollar Steve Harrison, Joe Sers, Paul Campbell
Plastic Foodservice Hardware Mark Turner Al Sheppard, Mike Killmer, John Meagher
Reincarnation for After Life Vehicles Matt Swartz Dennis Merrion, John Roderique, Robert Stitt
Discovery Phase
“Fail Fast, Fail Cheap on Key Death Threats”
Do Customers Care
Does the Math Work
Political Fallout
Are We Capable
Independent Validation
Merwyn Research Concept Screening
Concept Merwyn Score Automotive Harness Mfg. 51% Contract Manufacturing Services for Plastic Injection Products 31% Outfitting BOP Institutional Commissaries ‐ Make It For Ourselves On hold, not scored Premium Regional Warehouse Space/Labor Services at Exceptional Prices 51% Reincarnation for Deadlined Vehicles 59% Second Chance, A New Brand On hold, not scored
NOTE: The average score for concepts submitted for Merwyn benchmarking is 29%
Case Study
LED Lighting
Define
Discovery
Develop
Deliver
Thank You
QUESTIONS
Brad Beus, General Manager Business DevelopmentUNICOR/Federal Prison Industries400 First Street NW, RM 6013Washington, DC 20534202-305-3724 (Phone)Brad. [email protected]