> IN DEPTH PA R E T O A W A R D W I N N E R Old Dominion University Achieves Pareto Award The seventh recipient of coveted award is also the first institution of higher education. B Y L A R RY A N D E R S O N Old Dominion University’s procurement staff: (L-R) Kwanza Hood, Jayanti Sharma, Jerri Kemp, Etta Henry, Janis Turner, Rick Berry, Dwayne Young, Nicole Justice, Harry Smithson, Arcelia Barcliff, Neil Cutler. Not pictured: Felecia Samuel, Josh Bray. ne of the steps toward achieving the Pareto Award of Excellence in Public Procurement is providing written responses to 60 questions covering various award criteria. When pursuing the award for Old Dominion University in Norfolk, Va., Rick D. Berry, executive director of Construction and Procurement, submitted documentation totaling 1,500 pages. “I wanted to make sure they had all the information they needed,” recalled Berry. The approach paid off when Old Dominion University was accredited as the first institution of higher education to achieve the Pareto Award, designating that the university met criteria so challenging that only six public agencies have earned the accreditation since the award’s inception in 2003. The Pareto Award of Excellence in Public Procurement, comparable to O 24 the Malcolm Baldrige National Quality Award, is named for the political sociologist and economist Vilfredo Pareto (1848-1923), the father of scientific procurement whose Pareto Rule says roughly 80 percent of effects come from 20 percent of causes. Pareto accreditation is awarded for five years, and obtaining the award requires rigorous adherence to a three-phase award process. Candidates must complete a selfstudy and then provide responses to those 60 questions covering areas of leadership, strategic planning, customer focus, process management, technology and information management, and performance review. The final phase involves an on-site peer review. Only public procurement agencies that have been accredited with NIGP’s Outstanding Agency Accreditation Achievement Award (OA4) are eligible for the Pareto Award. The road to Pareto success “We decided we wanted to make procurement at Old Dominion University the best in the country,” said Berry. “You get there by making sure your policies and procedures are excellent and aligned with the strategic plan of the university. It took years to do that.” Achieving excellence also involves making sure the right people are in place to get the job done. “I looked at the people who were here and their skill sets,” Berry said. “I was able to train the people here and hire new people and get quality staff members in the organization. That’s why you need the help of human resources.” Berry added that staff development is an ongoing process. He continues to encourage employees to pursue higher education, such as working toward graduate degrees, to seek certifications, and to get WWW. GOV PRO.C OM I OCTOBER/NOVEMBER 2010 I GO P RO T H E O F F I C I A L P U B L I C AT I O N O F N I GP expect me to do a good involved in professional ´7KHZRQGHUIXOWKLQJDERXWWKH job. Excellence is expected organizations at the here.” state and national levels. 3DUHWR$ZDUGLVWKDWLWVWDUWVRIILQ Ensuring customer focus Even during the tough economic times, when WKHSURFXUHPHQWDUHDEXWLW·VDOVRDQ at Old Dominion University includes considering the cost-of-living increases are hard to come by, DZDUGIRU2OG'RPLQLRQ8QLYHUVLW\LW vendors they buy from and the departments they serve Berry has continued to reward employees for VKRZVWKDWWKH\YDOXHSURFXUHPHQWμ as the primary customers for procurement. They excellence through job emphasize collecting a lot reclassifications and a — Rick D. Berry of information related to bonus program. performance and workload “Our philosophy is to nationwide that have achieved the measures. “We have spent hire the right people, train top honor. more and more time on surveys to see them properly, compensate them As executive director of what our customers think of us,” said properly, empower them and they will Construction and Procurement at Old Berry. “They will tell you where you excel,” he said. “That’s generally what Dominion University, Berry oversees are strong and where you are weak. we do, in partnership with human a 12-person staff in the procurement A lot of people don’t like surveys, but resources.” area and another 12-person team they are a great tool.” In his quest for procurement in the construction field (led by Old Dominion University has also excellence at Old Dominion Dale Feltes, director of Design and excelled at increasing participation University, Berry called on the Construction, who reports to Berry). of small, minority and womanexperience he had gained in strategic The procurement staff includes three owned businesses in recent years. planning during his 25-year tenure in managers who handle procurement, The institution won the Virginia procurement in Virginia Beach, Va., inventory control, surplus property Governor’s 2009 SWaM Champion and on the time he spent exploring and contract administration. Award (for Small, Woman and the subject in graduate school: Minority-owned business). “You have to make sure everything Business process improvements you do relates back to the strategic Procurement and beyond related to procurement at Old plan, including hiring, policies and The site visit required for Pareto Dominion University include both reprocedures, work assignments and Award accreditation was exhaustive. engineering processes to make them performance measures.” Strategic “They sent a team down for a variety more efficient and automating them operations also include an emphasis of interviews, through individuals, to make them faster. Processes that on continuous process improvement focus groups and meetings with have been re-engineered in the last and on benchmarking best practices. vendors,” said Berry. The team year include: “It’s a journey,” said Berry. interviewed 50 people and asked Having achieved the desired a variety of questions about the ³ Electronic receiving, to level of excellence at Old Dominion HR plan, the customer satisfaction eliminate errors in receiving University, Berry proceeded plan and the university’s use reports and to facilitate timely to the next step: To receive of technology. The goal was to payments. acknowledgment of that excellence, measure the appropriateness of the ³ The p-card program, including which comes through accreditation. organization’s structure and confirm automating the card-holder log He said, “O.K. now, I know we’re that procurement’s mission, goals program, which eliminates errors, good, but how can I make sure and objectives are consistent with the saves time in data entry and my boss has something to show university’s strategic plan. minimizes paper documents everybody what we are achieving?” “They go beyond procurement ³ A new contract administration The first step was to earn the OA4 to look at the leadership of the program, including additional award from NIGP, which involves organization,” continued Berry. training for contract administrators meeting a detailed list of criteria, “The wonderful thing about the and better monitoring to ensure a self-assessment process and a Pareto Award is that it starts off contractors are being paid through detailed application to document in the procurement area, but it’s the contract and auditing. This policy, procedures and organizational also an award for Old Dominion program has found $111,000 in structures. Old Dominion University University; it shows that they value errors in the last six months and is one of about 70 organizations that procurement. It is a holistic approach resulted in refunds from various have achieved the OA4 accreditation. to buying, support and excellence. departments. The next step was to apply for the The university does it right, from the “We want to make sure we are coveted Pareto Award and to join president all the way through. They adding more value,” said Berry. the elite group of six organizations allow me to do a good job, and they “Procurement can add value in many 26 WWW. GOV PRO.C OM I OCTOBER/NOVEMBER 2010 I GO P RO T H E O F F I C I A L P U B L I C AT I O N O F N I GP ways, from writing good contracts to negotiating and managing the contracts.” Related to technology, the university uses the state’s electronic procurement tool, which handles most business (more than 90 percent) through electronic solicitations and electronic purchase orders. “We are working with the state to improve the system, which is state-wide, and to get better reporting and contracting tools,” said Berry. Albert Hall award winner NIGP’s 2010 Forum in San Antonio was a big event for Berry, who also won the 2010 Albert H. Hall Memorial Award, the Institute’s highest honor. In presenting the award, Rick Grimm, NIGP CEO, recognized Berry’s “ability to convert vision into governance and policy.” As a leader of NIGP, Berry has worked for a more open process to elect leaders and to afford opportunities for members to serve on committees. Today, NIGP board members are elected by the membership through a competitive process and more than 150 members serve on 13 NIGP Committees and task forces. Berry served as president of NIGP’s largest chapter affiliate in 1992 and as president of NIGP in 2000. “He is perhaps best noted for his passion for teaching and mentoring students,” said Grimm in presenting the award. Berry has had only three jobs in his adult life. He began in the procurement profession as an entry-level buyer in Virginia Beach, Va., in 1975, and stayed with the same employer for 25 years as he worked his way up to chief procurement officer. He also expanded his education during the same period, progressing from an associate’s degree to undergraduate and graduate degrees, all courtesy of the city’s 100 percent tuition reimbursement. Berry credits Giles Dodd, Virginia Beach assistant city manager, as his mentor who ´<RXQHHGWRORYHWKH SURIHVVLRQ<RXFDQ·W H[FHOXQOHVV\RXORYHLWμ — Rick D. Berry understood the value of procurement, saw his potential, allowed him to make mistakes and was his inspiration during his 25-year tenure at the city. Berry also credits Bill Davis, the purchasing agent who hired and trained him at the tender age of 24. During the dot-com craze, Berry went to work briefly (about 15 months) for DemandStar, an e-procurement company, but returned to the public sector with his job at Old Dominion University, where he has been since 2002. “You need to love the profession,” said Berry. “You can’t excel unless you love it. Education is also important, so you can understand the leadership theories, organizational theories and management theories. Get involved in professional organizations. Look outside your organization and be exposed to other people doing similar work. Develop a network to share information.” Berry concedes that professional involvement comes at a price, which includes having less time to spend with family. He acknowledges his family’s support, especially wife Karen, as an important element in his professional success. “I could not have done any of this without her,” he said. About the author Larry Anderson is the editor of Go Pro. Circle 14 on Reader Service Card or visit freeproductinfo.net/gp 28 WWW. GOV PRO.C OM I OCTOBER/NOVEMBER 2010 I GO P RO T H E O F F I C I A L P U B L I C AT I O N O F N I GP