Layoff Aversion Through Management Assistance
Recently, the Massachusetts State Legislature appropriated $250,000 to SBANE for the expressed purpose of providing high-powered private consulting expertise to small and medium-sized manufacturers undergoing a business transition. The intervention is specifically designed to prevent layoffs at Massachusetts companies through targeted consultant assistance. Hopefully, we will be able to deliver intellectual solutions to inherent problems that today’s chief executive officer is facing in a revolutionary global economic climate. SBANE expresses its gratitude at this “cutting edge” initiative engendered by the Massachusetts State Legislature and promises to deliver on their investment.
HOW IT WORKS
This is a rolling admissions process that can be activated by contacting Bob Baker, President of SBANE, who will forward your one-page application to ascertain whether your company qualifies for the assistance. Since the resources are initially limited and we are attempting to provide assistance to a number of eligible Massachusetts companies, please submit a scope of services from your company or consultant. This is a matching dollar-for dollar management assistance program, which requires the eligible candidate company to pledge a cash match. For example, if the project will cost $16,000 to hire a person or agency to institute lean manufacturing in a plant, then you will be required to send an $8,000 certified check to SBANE for 50% of the project cost. SBANE will pay the third party directly so it can track the progress and benchmarks that have been established at the outset by the recipient company. We are not interested in making this program a bureaucracy, so decisions will be made quickly and contracts will be executed immediately with the acceptable vendor. SBANE must submit reports on its expenditures to committees in the Massachusetts State Legislature, so we will monitor performance and accountability to ensure consultant compliance.
Initially, a company will be eligible to receive up to, $10,000 in consultant assistance from SBANE. Financial accounting and disbursements will be made by SBANE.
SBANE will be more than happy to provide each applicant with a list of their member consultants and a number of choices for applicants to interview. If the consultant selected is unknown to the SBANE staff, SBANE will reserve the prerogative to approve consultant credentials or offer up alternative names of vendors. We currently have a list of qualified individuals and firms that meet these minimum standards.
TYPES OF CONSULTING
(not inclusive list):
- Financial restructuring of bank debt
- Marketing or Branding programs
- Accounting, Comptroller, Chief Financial Officer staffing services
- Vendor payment plans
- Reorganization under the Bankruptcy Code
- Lean Manufacturing projects
- Government procurement:
- State contracts
- Federal contracts
- 8A certification
- SBIR grants
FINANCIAL DRAWDOWN AND STAFF REVIEW PROCESS
- Staff reviews quality of the proposal and consultant rate structure and either rejects it or accepts proposal
- Company must send 50% of fee to SBANE
- Consultant submits a monthly progress report to SBANE along with an invoice
- SBANE disburses check to consultant on a monthly basis if it’s a billable hourly deal
- SBANE disburses proportionately on progress reports submitted by consultant until completion
- Meeting with client to discuss results achieved at end of the project or assignment
SMALL BUSINESS REFERENCES ON MANAGEMENT ASSISTANCE
The staff has successfully pioneered this concept three years ago in a quasi public loan fund. The principles are exactly the same, although SBANE will have the flexibility of customizing this management assistance to the specific niche needs of the Commonwealth’s enterprises. For reference purposes on how this program works in practice, please contact the following SBANE chief executive officers who already have had experience with this program.
- Anthony Dolphin, SpringBoard Technology Corporation, Springfield (413-272-4106)
- Karin Dolan,TNCO,Whitman (781-447-6661, ext. 7508)
- Dan Denault, Purity Services, New Bedford (508-993-0473)
- Tom Derecktor,TracRac Inc., Fall River (508-677-4130)