Finding a 'Why' for Supplier Diversity

For the last two weeks, we have been focused on what supplier diversity is and how corporations are putting these programs into place. This week we turned to a very important point - WHY? For each company, procurement team, and individual, being able to articulate a 'Why' for supplier diversity is absolutely critical. This effort, which basically amounts to an internal sales campaign, will determine whether the supplier diversity has the talent, influence, and funding it needs, or whether it will end up being a token 'feel good' effort that dwindles over time.

There is no right answer to the question "Why," and some organizations will have different "Whys" by certification category and customer/stakeholder group. Realistically speaking, however, there need to be process or metric-driven specifics if a supplier diversity program is to succeed.

For instance, in this week's featured quote, Ursula von der Leyen, President of the European Commission, shared her clear "Why" specifically related to the value of having women on board. In this case, having a "Why" can help overcome the challenge of finding women that are qualified for open top positions.

What did you share about YOUR "Why?"

In this week's poll, I asked for the primary driver behind different companies' supplier diversity programs. Working with diverse suppliers being the 'right' thing to do was the clear winner.

In this morning's LinkedIn LIVE audio event with Philip Ideson, Helen Mackenzie, and Canda Rozier (which you can now listen to on demand here - thanks Phil!), we discussed the results of this poll and came to a few conclusions:

• We were all a bit skeptical about the lack of specifics related to "Because it is the right thing to do." Not only does that make it very hard to measure results or track to specific corporate objectives, it absolutely means that if a supplier diversity initiative fails, procurement will be left holding the bag.
• Without those specifics, there is concern about the long term commitment to supplier diversity. Will the commitment hold the first time a hard choice needs to be made? What if the moral compass of the enterprise changes direction, either because of new circumstances or new leadership?
• "There has to be a reason." Canda gave us a 'mic drop moment' with that statement. As powerful as it is straightforward. I shared two examples of companies that started supplier diversity programs for what might be considered 'commercial' (or anti-altruistic) reasons... one was a logistics provider that needed a diversity program in order to win and keep a lucrative government contract, and the other was a consumer goods provider who wanted to invest in woman-owned suppliers because women make up such a large portion of their consumer base. In my opinion, these clearly objective-driven programs are more likely to retain executive commitment and stand the test of time - ultimately also creating more opportunities for the diverse owned businesses they work with.

Next week's Supplier Diversity Discussions poll will focus on the challenges small suppliers face when working for large companies based on the feedback procurement gets from those suppliers. Click here to vote and share your point of view.

My Article About Inclusive Supply Chains Covered on The Buzz

I was thrilled to have my article on Building Inclusive Supply Chains featured by LinkedIn as the Idea of the Day, but the good news didn't stop there. Scott Luton, Greg White, and Kevin L. Jackson discussed it during The Buzz on Supply Chain Now. Kevin had some particularly interesting comments about the power of disruption to drive change - listen to an excerpt from that livestream here as well as my comments.

Kevin listed three JOLTS in that segment:

1. COVID.
2. The forced change resulting from COVID.
3. How do I alter my long term strategy to apply what I have learned?

I have been thinking about Kevin's comments since watching this discussion live, and I think there is a great deal of power in how we choose to deal with the inevitable JOLTS in life. We can be the victims of change or we can be flexible, absorb the impact of JOLTS, and make our own decision about how to proceed from there.

That sentiment applies whether we are trying to drive supplier diversity, increase supply chain sustainability, or simply build a new procurement team from the ground up. We do get to make the choice.

What's up for next week?

In next week's Supplier Diversity Discussions content, we will be focused on the differences between large businesses and small suppliers - where are there advantages, and what challenges do we need to be aware of? Be on the lookout for a video excerpt of my interview with EyeMail CEO Lisa S. Jones, a Creator Accelerator 'Crossover project' with Paul Lawrence, passionate Veteran advocate and former Under Secretary for Benefits at the U.S. Department of Veterans Affairs, and a new poll question starting on Thursday!

Follow me on LinkedIn or search for #SupplierDiversityDiscussions to stay on top of all of the content associated with my LinkedIn Creator Accelerator Project!