Integrated packaging corporation

Targeted low performing plants that were near closing or for sale.
Worked for a plant for three years to understand the issues and gained support of the unions
Then convinced the owners to sell the plant.
Problems with the plant.
-distinct and opposing cultures between management and plant workers
-no upward mobility for plant workers
-workers lacked job security
-low motivation, high absentee rate

IPC policies
-honesty and dedication
-shift reduction-avoid layoffs
-cross-training – increase capabilities
-uniform benefits- equality
-ma gement relocation
-open door policy
-absentee policy
-three strikes and your out.

Ipc transformation
-25-30% sales growth
-shift in employees
-average salty increased to $50,000
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Business development northeast dc

All therapy a physical therapy business in dc employees small numbers
Project focus is to develop a comprehensive marketing plan.

Paradise community capital

Goal of the fund was to create new jobs, increase benefits, and provide a return to investors.

ThickasA one of the businesses had problems with filling orders and increased competition.
-two options
1. Sell two divisions or
2. Find new management.

Hybrid option
-hire a consulting firm to diagnose the cause of the problem.

Rest a while
-faced increased competition and older demographic
Options
1. Outsource overseas
2 go upscale
Hybrid option
Conduct market research to determine if upscale need is there if yes do option 1 if not then exit the portfolio.

Joe’s grills
Manufactures grills for restaurants and diners with high level of returns

Difficulties
-not hiring local untrained applicants or implementing workforce enhancement programs

Options
1. Do nothing
2. Convince management to honor agreement.

Inner city affordable financing

Battling between credit union and check cashing options in the inner city.

Develop an alliance as a means of increasing presence for the credit union and increasing the volume for the CCO.

Consultant clash

General lessons
-defending =losing
-don’t sit on problems
-under promise over deliver
-get smart fast
-establish early wins
-know the context
-no bait and switch
-raise the flag early

Federal consulting

Consulting versus contracting
-contracting is staff augmentation and information technology.
-consulting is advisory services to top level of the organization. Strategy and operations are the focus of the projects.

Uniqueness of the federal space.
-important to remember the industry is regulated market.
-sales are derived through industry association contact. Involvement in philanthropic activity. Purpose is to find ways to meet with the individuals in a group environment
-return sales are generated by doing good work for the client. Relationship/trusted advisor role is essential in the federal consultant role.
-ROI equivalent for federal space is more about cost advoidance and to increase utilization of available resources to provide increased services
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City first enterprises

Started a community bank with $25 million in capital and 25 students from Yale both law and business students. Modeled after city first bank in dc.

Cfe was developed from research showing that a lack of access to financial resources was the problem for dc residents.
It has grown to $155 million in assets.
Cdfi is community development finance institute. A bank that focuses on underserved areas. Approx 60-70 such banks in existence.

Use community land based trust to make access to homes easier for low income individuals. Model is based on sharing of appreciation. Provide a subsidized second mortgage in exchange for home value appreciation.

Meridian management group, inc.

Mayland small business development financing authority.

Have four compnents
1. Contract financing- provides loans and guarantees for financing public utility contracts
2. Loan guarantees-
3. Surety bonding-
4. Equity financing- opened to franchises then business acquisitions then technoly based business then other types of businesses after this point.

Had to have it approved by the state legislAture since it is a state program

Loans must have a positive economic impact in terms of jobs and tax revenue generated.

Most important aspects for lending are
1. Character
2. Ability to operate efficiently and deliver a profit.

Attempt to exit comanies they invest in 3-5 years
Also sit on the board of the company
Look to have alignment with the companies they invest in

Look to invest, create value, and then exit
Philosophy is to build jobs so people can feed their families and live well.

Negotiating a client service predicament

Client wants an assesment of the management team it was hired to assist with a project. Assessment is to determine the ability of the management team to implement the recommended changes in the project.

Economic development finance for dc

Independent CFO that arose due to economic concerns of the mid 1990s.
Purpose is to find ways to finance economic development prrojects.
Goal was to keep th city from going bankrupt again.

Federal land transfer has resulted in an increase in acreage but comes with a cost to make the land useful for economic purposes.

Current mayor has made a push to move economic development outside of the downtown area into neighborhoods and east of anacostia river.

Additionally have made considerable investment in the arts and etertainment

Project based economic development tools
1. Tax increment financing
Finance bonds to aid in development that are based on taxes that are generated by the construction.
Used in dc for projects committed to developing housing…
Examples gallery place and mandarin hotel in dc

2. Payment in lieu of taxes financing.
Works similar to tif but instead use sales taxes instead of flat rate taxe/ property taxes.

3. Revenue bonds
Allow organizations to take out bonds tax free. Organization mist repay the bond. Typically not done for economic development but rather for public infrastructure.
4. Self supporting general obligation bonds.
Bond taken pu on behalf of the government

5. Direct appropriation (tax exemptions, grants)
Equivalent of giving grants to organizations. Money without repayment obligation.

Most economic development is done on a first come first serve basis.
Key to proposal is to determine how district could get tax revenue from the project to achieve repayment of the loans.

Great street financing project is similar to tif financing but instead of tax revenue generated from one project it is revenue from the entire area.

Federal sti ulus bonds that were made available as part of stimulus package.
-babs build America bonds
-district issues taxable bonds with federal government reimburses 35% interest
-recovery zone economic development bonds
-same thing exempt government pays 45% interest
-recovery zone facilities bonds
-similar to tax exempt bonds but can be used for for profit ventures.

Debt service cap was passed based on the prose that there is an acceptable amount of money that is used for financing. Limit for dc is 12% of total expenditures.
Dc has a budget of 9 billion and majority goes to health and human services. District loses 40 million due to problems in billing for Medicaid.